No official summary available for this bill.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6918 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 6918
To amend the Clean Air Act to establish a program to annually phase
down greenhouse gas emissions, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 19, 2025
Mr. Tonko introduced the following bill; which was referred to the
Committee on Energy and Commerce, and in addition to the Committees on
Ways and Means, Education and Workforce, and Science, Space, and
Technology, for a period to be subsequently determined by the Speaker,
in each case for consideration of such provisions as fall within the
jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To amend the Clean Air Act to establish a program to annually phase
down greenhouse gas emissions, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Climate Pollution
Standard and Community Investment Act of 2025''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--NATIONAL CLIMATE RESPONSE
Sec. 101. Climate pollution reduction certainty.
Sec. 102. Clean Energy Rebate Program.
Sec. 103. Worker and Community Assistance Fund.
Sec. 104. Cleaner Air Community Fund.
Sec. 105. Negative Emissions Activities Fund.
Sec. 106. Energy Innovation Fund.
Sec. 107. Emission allowance market oversight.
Sec. 108. Direct hire authority for implementation of this title.
TITLE II--WORKER AND COMMUNITY ASSISTANCE
Sec. 201. Definitions.
Sec. 202. Energy and economic transition impact studies.
Sec. 203. Office of Energy and Economic Transition.
Sec. 204. Interagency Energy and Economic Transition Task Force.
Sec. 205. Stakeholder Advisory Committee.
Sec. 206. Assistance for adversely affected communities.
Sec. 207. Community-Based Transition Hub program.
Sec. 208. Assistance for adversely affected workers.
TITLE I--NATIONAL CLIMATE RESPONSE
SEC. 101. CLIMATE POLLUTION REDUCTION CERTAINTY.
(a) In General.--The Clean Air Act (42 U.S.C. 7401 et seq.) is
amended by adding after title VI the following new title:
``TITLE VII--CLIMATE POLLUTION REDUCTION PROGRAM
``PART A--GENERAL
``SEC. 701. DEFINITIONS.
``In this title:
``(1) Attributable greenhouse gas emissions.--The term
`attributable greenhouse gas emissions', for a given calendar
year, means--
``(A) for a covered entity that is a fuel producer
or importer described in paragraph (4)(B), greenhouse
gas emissions that would be emitted from the combustion
of any petroleum-based or coal-based liquid fuel,
petroleum coke, or natural gas liquid, produced or
imported by that covered entity during that calendar
year for sale or distribution in interstate commerce;
``(B) for a covered entity that is a bulk producer
or importer described in paragraph (4)(C), the tons of
carbon dioxide equivalent of any gas described in
clauses (i) through (v) of paragraph (4)(C)--
``(i) produced or imported by such covered
entity during that calendar year for sale or
distribution in interstate commerce; or
``(ii) released as fugitive emissions in
the production of fluorinated gas; and
``(C) for a natural gas local distribution company
described in paragraph (4)(J), greenhouse gas emissions
that would be emitted from the combustion of the
natural gas, and any other gas meeting the
specifications for commingling with natural gas for
purposes of delivery, as determined by the
Administrator, that such entity delivered during that
calendar year to customers that are not covered
entities.
``(2) Carbon dioxide equivalent.--The term `carbon dioxide
equivalent' means the unit of measure, expressed in tons, of a
greenhouse gas as provided under section 713.
``(3) Compliance period.--
``(A) The term `compliance period', with respect to
compliance periods 2 through 10 and subsequent
compliance periods, means the period of 3 consecutive
calendar years following the preceding compliance
period.
``(B) The term `compliance period 1' means calendar
years 2027, 2028, and 2029.
``(4) Covered entity.--The term `covered entity' means each
of the following:
``(A) Any electricity source with a nameplate
capacity of at least 25 megawatts.
``(B) Any stationary source that produces, and any
entity that imports, for sale or distribution in
interstate commerce in 2025 or any subsequent year,
petroleum-based or coal-based liquid fuel, petroleum
coke, or natural gas liquid, which, in the aggregate,
if combusted would emit 25,000 or more tons of carbon
dioxide equivalent, as determined by the Administrator.
``(C) Any stationary source that produces, and any
entity that imports, for sale or distribution in
interstate commerce, in bulk, or in products designated
by the Administrator, in 2025 or any subsequent year,
25,000 or more tons of carbon dioxide equivalent of--
``(i) fossil fuel-based carbon dioxide;
``(ii) nitrous oxide;
``(iii) perfluorocarbons;
``(iv) sulfur hexafluoride;
``(v) any other fluorinated gas, except for
nitrogen trifluoride, that is a greenhouse gas,
as designated by the Administrator under
section 712; or
``(vi) any combination of greenhouse gases
described in clauses (i) through (v).
``(D) Any stationary source that emits 25,000 or
more tons of carbon dioxide equivalent of nitrogen
trifluoride in 2025 or any subsequent year.
``(E) Any geologic sequestration site.
``(F) Any stationary source in any of the following
industrial sectors:
``(i) Adipic acid production.
``(ii) Aluminum production.
``(iii) Ammonia manufacturing.
``(iv) Cement production.
``(v) Hydrochlorofluorocarbon production.
``(vi) Lime manufacturing.
``(vii) Nitric acid production.
``(viii) Petroleum refining.
``(ix) Phosphoric acid production.
``(x) Silicon carbide production.
``(xi) Soda ash production.
``(xii) Titanium dioxide production.
``(xiii) Coal-based liquid or gaseous fuel
production.
``(G) Any stationary source in the chemical or
petrochemical sector that, in 2025 or any subsequent
year--
``(i) produces acrylonitrile, carbon black,
ethylene, ethylene dichloride, ethylene oxide,
or methanol; or
``(ii) emits 25,000 or more tons of carbon
dioxide equivalent from the production of any
number of chemical or petrochemical products.
``(H) Any stationary source that--
``(i) emits 25,000 or more tons of carbon
dioxide equivalent in 2025 or any subsequent
year; and
``(ii) is in one of the following
industrial sectors: ethanol production,
ferroalloy production, fluorinated gas
production, food processing, glass production,
hydrogen production, iron and steel production,
lead production, magnesium production, pulp and
paper manufacturing, landfill operations,
wastewater treatment operations, and zinc
production.
``(I) Any fossil fuel-fired combustion device (such
as a boiler) or grouping of such devices that--
``(i) is all or part of an industrial
source not specified in subparagraph (D), (F),
(G), or (H); and
``(ii) emits 25,000 or more tons of carbon
dioxide equivalent in 2025 or any subsequent
year.
``(J) Any natural gas local distribution company
that in 2025 or any subsequent year delivers to
customers that are not covered entities 460,000,000
cubic feet or more of the total of--
``(i) natural gas; and
``(ii) any other gas meeting the
specifications for commingling with natural gas
for purposes of delivery, as determined by the
Administrator.
``(5) Criteria air pollutant.--The term `criteria air
pollutant' means an air pollutant subject to national ambient
air quality standards under section 109.
``(6) Designated representative.--The term `designated
representative' means, with respect to an entity described in
subparagraph (A), (B), or (C), an individual authorized,
through a certificate of representation submitted to the
Administrator by the owners and operators or similar entity
official, to represent the owners and operators or similar
entity official in all matters pertaining to this title
(including the holding, transfer, or disposition of emission
allowances), and to make all submissions to the Administrator
under this title. Entities covered under this paragraph are--
``(A) covered entities;
``(B) reporting entities (as defined in section
714); and
``(C) any other entities receiving or holding
emission allowances under this title.
``(7) Electricity source.--The term `electricity source'
means a stationary source that includes one or more combustion
devices that, on January 1, 2025, or any date thereafter, are
fossil fuel-fired and serve a generator that produces
electricity for sale.
``(8) Emission allowance.--
``(A) In general.--Except as provided in
subparagraph (B), the term `emission allowance' means a
limited authorization to emit, or have attributable
greenhouse gas emissions in an amount of, 1 ton of
carbon dioxide equivalent of a greenhouse gas in
accordance with this title.
``(B) Overburdened communities.--With respect to a
covered entity that is a stationary source, including
electricity sources and industrial sources, operating
in a location designated as a Cleaner Air Community
under section 733 of part C of this title, the term
`emission allowance' means a limited authorization to
emit 0.5 tons of carbon dioxide equivalent of a
greenhouse gas in accordance with this title.
``(9) Fossil fuel.--The term `fossil fuel' means natural
gas, petroleum, or coal, or any form of solid, liquid, or
gaseous fuel derived therefrom.
``(10) Fossil fuel-fired.--The term `fossil fuel-fired'
means powered by combustion of fossil fuel, alone or in
combination with any other fuel, regardless of the percentage
of fossil fuel consumed.
``(11) Fugitive emissions.--The term `fugitive emissions'
means greenhouse gas emissions from leaks, valves, joints, or
other small openings in pipes, ducts, or other equipment, or
from vents.
``(12) Geologic sequestration site.--The term `geologic
sequestration site' means a site where a greenhouse gas is
geologically sequestered.
``(13) Greenhouse gas.--The term `greenhouse gas' means any
gas described or designated under section 712(a).
``(14) Greenhouse gas emission.--The term `greenhouse gas
emission' means the release of a greenhouse gas into the
ambient air, except--
``(A) a release of methane for which the
Administrator imposes and collects a charge under
section 136(c) of the Clean Air Act;
``(B) a release of a hydrofluorocarbon that is
regulated pursuant to title VI of this Act or section
103 of the Consolidated Appropriations Act, 2021; and
``(C) greenhouse gases that are captured and
geologically sequestered, unless the greenhouse gas is
later released into the ambient air.
``(15) Hazardous air pollutant.--The term `hazardous air
pollutant' has the meaning given such term in section 112(a).
``(16) Hold.--The term `hold' means, with respect to an
emission allowance, to have in the appropriate account in the
emission allowance tracking system established under section
718.
``(17) Holder.--The term `holder' means, with respect to an
emission allowance, the entity that holds such emission
allowance.
``(18) Industrial source.--The term `industrial source'
means any stationary source that--
``(A) is not an electricity source; and
``(B) is in--
``(i) the manufacturing sector (as defined
in North American Industrial Classification
System codes 31, 32, and 33); or
``(ii) the natural gas processing or
natural gas pipeline transportation sector (as
defined in North American Industrial
Classification System codes 211112 and 486210).
``(19) Natural gas liquid.--The term `natural gas liquid'
means ethane, butane, isobutane, natural gasoline, and propane.
``(20) Natural gas local distribution company.--The term
`natural gas local distribution company' has the meaning given
the term `local distribution company' in section 2(17) of the
Natural Gas Policy Act of 1978.
``(21) Negative emissions activities fund.--The term
`Negative Emissions Activities Fund' means the fund established
under section 105 of the Climate Pollution Standard and
Community Investment Act of 2025.
``(22) Output.--The term `output' means the total tons or
other standard unit (as determined by the Administrator)
produced by an entity in an industrial sector.
``(23) Petroleum.--The term `petroleum' includes crude oil,
tar sands, oil shale, and heavy oils.
``(24) Retire.--The term `retire', with respect to an
emission allowance, means to disqualify such emission allowance
for any subsequent use.
``(25) Sequestered; sequestration.--The terms `sequestered'
and `sequestration' mean the separation, isolation, or removal
of greenhouse gases from the atmosphere, as determined by the
Administrator. Such terms include biological, geologic, and
mineral methods of separation, isolation, and removal, but do
not include ocean fertilization techniques.
``(26) Ton.--The term `ton' means a metric ton.
``(27) Vintage year.--The term `vintage year' means the
calendar year for which an emission allowance is established
under--
``(A) section 715; or
``(B) with respect to the establishment of the cost
containment reserve, section 720.
``SEC. 702. ECONOMY-WIDE REDUCTION GOAL.
``It is the national goal for the United States--
``(1) to achieve net-zero greenhouse gas emissions by not
later than 2050; and
``(2) for each year thereafter--
``(A) to maintain net-zero greenhouse gas
emissions; and
``(B) seek to achieve net-negative greenhouse gas
emissions as determined necessary by a scientific
assessment conducted by the Administrator.
``SEC. 703. LABOR STANDARDS.
``The Administrator shall take such action as may be necessary to
ensure that all laborers and mechanics employed by contractors or
subcontractors on projects assisted pursuant to this title, including
projects funded in whole or in part by the proceeds from the sale of
emission allowances or by financial incentives provided using such
proceeds, shall be paid wages at rates not less than those prevailing
for the same type of work on similar construction in the locality as
determined by the Secretary of Labor, in accordance with subchapter IV
of chapter 31 of title 40, United States Code. The Secretary of Labor
shall have, with respect to the labor standards specified in this
section, the authority and functions set forth in Reorganization Plan
No. 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 of title
40, United States Code.
``SEC. 704. REGULATIONS.
``Except as otherwise provided in this title, the Administrator
shall promulgate final regulations to carry out this title not later
than 24 months after the date of enactment of this title.
``PART B--POLLUTION LIMITATION AND PHASEDOWN FROM COVERED ENTITIES
``SEC. 711. AGGREGATE ENFORCEABLE TARGETS FOR COVERED ENTITIES.
``(a) In General.--The Administrator shall, by rule, establish
targets that are enforceable under this title for the aggregate
quantity of greenhouse gas emissions of covered entities for each
calendar year beginning in 2027 such that--
``(1) in 2027, the aggregate quantity of greenhouse gas
emissions (including attributable greenhouse gas emissions)
from covered entities is at least 5 percent below the average
annual aggregate quantity of greenhouse gas emissions in 2023,
2024, and 2025 from equivalent entities described in subsection
(d)(1);
``(2) in 2030, the aggregate quantity of greenhouse gas
emissions (including attributable greenhouse gas emissions)
from covered entities does not exceed 50 percent of the
aggregate quantity of greenhouse gas emissions in 2005 from
equivalent entities described in subsection (d)(2);
``(3) in 2040, the aggregate quantity of greenhouse gas
emissions (including attributable greenhouse gas emissions)
from covered entities does not exceed 30 percent of the
aggregate quantity of greenhouse gas emissions in 2005 from
equivalent entities described in subsection (d)(2); and
``(4) in 2050, the aggregate quantity of greenhouse gas
emissions (including attributable greenhouse gas emissions)
from covered entities does not exceed 10 percent of the
aggregate quantity of greenhouse gas emissions in 2005 from
equivalent entities described in subsection (d)(2).
``(b) Annual Reductions.--Beginning with 2028, the Administrator
shall, by rule, require the aggregate quantity of greenhouse gas
emissions from covered entities to decline on an annual basis, by at
least 2 percent of the aggregate quantity of greenhouse gas emissions
in 2005 from equivalent entities described in subsection (d)(2), until
annual greenhouse gas emissions from covered entities do not exceed 10
percent of the aggregate quantity of greenhouse gas emissions in 2005
from equivalent entities described in subsection (d)(2). Upon achieving
such an annual aggregate quantity, the Administrator shall ensure that
any future annual quantity of greenhouse gas emissions from covered
entities does not exceed the annual aggregate quantity of greenhouse
gas emissions from covered entities in the preceding year.
``(c) Addition of Covered Entities or Greenhouse Gases, or Change
in Exchange Values.--The quantities calculated pursuant to subsections
(a) and (b) may not be revised to reflect--
``(1) an entity becoming or ceasing to be a covered entity
after the date of the establishment of targets pursuant to
subsection (a);
``(2) the designation of a gas as a greenhouse gas pursuant
to section 712 after such date; or
``(3) the revision of the carbon dioxide equivalent value
of any greenhouse gas pursuant to section 713 after such date.
``(d) Equivalent Entities Described.--An entity is an equivalent
entity described in this subsection if--
``(1) for purposes of subsection (a)(1), the entity would
have been a covered entity in 2023, 2024, or 2025, if--
``(A) the definition of a covered entity in section
701 had been in effect for the respective year; and
``(B) the references in such definition to 2025
were references to 2023; and
``(2) for purposes of paragraphs (2) through (4) of
subsection (a), an entity that would have been a covered entity
in 2005, if--
``(A) the definition of a covered entity in section
701 had been in effect for the respective year; and
``(B) the references in such definition to 2025
were references to 2005.
``SEC. 712. DESIGNATION OF GREENHOUSE GASES.
``(a) Greenhouse Gases.--For purposes of this title, the following
are greenhouse gases:
``(1) Carbon dioxide.
``(2) Methane.
``(3) Nitrous oxide.
``(4) Sulfur hexafluoride.
``(5) Any hydrofluorocarbon.
``(6) Any perfluorocarbon.
``(7) Nitrogen trifluoride.
``(8) Any other anthropogenic gas designated as a
greenhouse gas by the Administrator under subsection (b).
``(b) Determination of Additional Greenhouse Gases.--The
Administrator, by rule--
``(1) may determine whether 1 ton of an anthropogenic gas
makes the same or greater contribution to global warming over
100 years as 1 ton of carbon dioxide;
``(2) shall publish, in accordance with section 713, the
carbon dioxide equivalent value for each gas with respect to
which the Administrator makes an affirmative determination
under paragraph (1);
``(3) may for each gas with respect to which the
Administrator makes an affirmative determination under
paragraph (1) and that is used as a substitute for a class I or
class II substance pursuant to title VI of this Act, determine
the extent to which to regulate that gas pursuant to title VI
of this Act; and
``(4) may designate as a greenhouse gas for purposes of
this title each gas for which the Administrator makes an
affirmative determination under paragraph (1), to the extent
that it is not regulated pursuant to title VI or section 103 of
the Consolidated Appropriations Act, 2021.
``SEC. 713. CARBON DIOXIDE EQUIVALENT VALUE OF GREENHOUSE GASES.
``(a) Measure of Quantity of Greenhouse Gases.--Any provision of
this title that refers to a quantity or percentage of a quantity of a
greenhouse gas means the quantity or percentage of the greenhouse gas
expressed in carbon dioxide equivalent.
``(b) Initial Value.--Except as revised by the Administrator
pursuant to subsection (c), the carbon dioxide equivalent value for
purposes of this title for any greenhouse gas shall be the 100-year
Global Warming Potential for the greenhouse gas provided in the most
recent assessment report from the Intergovernmental Panel on Climate
Change as of the date of enactment of this title.
``(c) Periodic Revision.--
``(1) Revision and publication.--Not later than January 1,
2030, and (except as provided in paragraph (3)) not less than
once every 5 years thereafter, the Administrator shall--
``(A) revise the carbon dioxide equivalent value
for purposes of this title for any greenhouse gas to
reflect the 100-year Global Warming Potential provided
in the most recent assessment report from the
Intergovernmental Panel on Climate Change (or any
successor organization); and
``(B) publish in the Federal Register any such
revision.
``(2) Effective date of revision.--A revision published in
the Federal Register under paragraph (1)(B) shall take effect
for greenhouse gas emissions on January 1 of the first calendar
year that begins at least 9 months after the date on which the
revision was published.
``(3) Decrease in frequency.--The Administrator may
decrease the frequency of revision under paragraph (1) if the
Administrator determines that such decrease is appropriate in
order to synchronize such revision with any similar revision
process carried out pursuant to the United Nations Framework
Convention on Climate Change or to an agreement negotiated
under that convention.
``SEC. 714. GREENHOUSE GAS REGISTRY FOR MONITORING AND REPORTING.
``(a) Reporting Entity.--In this section, the term `reporting
entity' means an entity that is--
``(1) a covered entity;
``(2) an entity that is required to report under part 98 of
title 40, Code of Federal Regulations (or any successor
regulations);
``(3) an entity that receives emission allowances under
section 723; or
``(4) any other entity that the Administrator determines to
be a reporting entity for purposes of this title.
``(b) Regulations.--
``(1) In general.--Not later than 6 months after the date
of enactment of this title, the Administrator shall issue
regulations establishing a Federal greenhouse gas registry.
``(2) Reporting.--Except as provided in paragraphs (3) and
(4), such regulations--
``(A) shall require reporting entities to report to
the Administrator consistent with part 98 of title 40,
Code of Federal Regulations (or any successor
regulations);
``(B) may include reporting requirements that are
additional to the requirements under such part 98 of
title 40, Code of Federal Regulations (or any successor
regulations), as determined appropriate by the
Administrator to implement this title; and
``(C) shall ensure the completeness, consistency,
transparency, accuracy, precision, and reliability of
data included in the Federal greenhouse gas registry.
``(3) Timing.--For calendar year 2027 and each subsequent
calendar year, each reporting entity shall submit annually data
required under this section to the Administrator not later than
60 days after the end of the applicable calendar year, except
when the data is already being reported to the Administrator on
an earlier timeframe.
``(4) Waiver of reporting requirements.--The Administrator
may waive reporting requirements under this section for
specific entities to the extent that the Administrator
determines that sufficient and equally or more reliable,
verified, and timely data are available to the Administrator
and the public on the internet under other mandatory, statutory
Federal requirements.
``SEC. 715. EMISSION ALLOWANCES.
``(a) In General.--The Administrator shall establish a quantity of
emission allowances for each calendar year starting in 2027 as
necessary to achieve the targets under section 711(a) and the
reductions under section 711(b).
``(b) Identification Numbers.--The Administrator shall assign to
each emission allowance established under subsection (a) a unique
identification number that includes the vintage year for that emission
allowance.
``(c) Emission Allowances for Each Calendar Year.--
``(1) Compliance periods 1 and 2.--Not later than January
1, 2027, the Administrator shall establish the quantity of
emission allowances for each year in compliance period 1 and
compliance period 2.
``(2) Following two compliance periods.--Not later than
July 1, 2032, and every 6 years thereafter, the Administrator
shall establish the quantity of emission allowances for each
calendar year of the following two compliance periods. When
establishing the quantity of emission allowances under this
paragraph for a calendar year, the Administrator shall,
consistent with subsection (a), consider--
``(A) the economy-wide reduction goal established
by section 702;
``(B) the total number of emission allowances in
circulation, as required to be published by subsection
716(e); and
``(C) other factors determined appropriate by the
Administrator to support the effective implementation
of this title, including the goal established by
section 702.
``(3) Failure to set emission allowance quantity.--If the
Administrator fails to establish the quantity of emission
allowances for a compliance period by the start of the first
calendar year of the compliance period, the quantity of
emission allowances established for each calendar year of such
compliance period shall be the amount equal to--
``(A) the quantity of emission allowances
established for the preceding calendar year; minus
``(B) the quantity of emission allowances that is
equal to 3.5 percent of the aggregate quantity of
greenhouse gas emissions in 2005.
``SEC. 716. PROHIBITION OF EXCESS GREENHOUSE GAS EMISSIONS.
``(a) Prohibition.--Effective January 1, 2027, a covered entity may
not emit greenhouse gas emissions and have attributable greenhouse gas
emissions, in combination, in excess of the quantity of greenhouse gas
emissions represented by the number of emission allowances surrendered
by the covered entity pursuant to subsection (b)(3) for the compliance
period.
``(b) Demonstrating Compliance.--Except as otherwise provided in
this section, a covered entity shall surrender to the Administrator for
retirement--
``(1) by 12:01 a.m. on April 1 (or a later date established
by the Administrator under subsection (h)) of the second year
of a compliance period, not less than the number of emission
allowances needed to represent 50 percent of the total quantity
of greenhouse gas emissions and attributable greenhouse gas
emissions, in combination, of the covered entity during the
first year of the compliance period;
``(2) by 12:01 a.m. on April 1 (or a later date established
by the Administrator under subsection (h)) of the third year of
a compliance period, not less than the number of emission
allowances (including those surrendered pursuant to paragraph
(1) for the compliance period) needed to represent 50 percent
of the total quantity of greenhouse gas emissions and
attributable greenhouse gas emissions, in combination, of the
covered entity during the first 2 years of the compliance
period; and
``(3) by 12:01 a.m. on April 1 (or a later date established
by the Administrator under subsection (h)) of the year
following a compliance period, not less than the number of
emission allowances (including those surrendered pursuant to
paragraphs (1) and (2) for the compliance period) needed to
represent 100 percent of the total quantity of greenhouse gas
emissions and attributable greenhouse gas emissions, in
combination, of the covered entity during the full compliance
period.
``(c) Application to Fractions of Tons.--For purposes of this
section, any amount less than 1 ton of carbon dioxide equivalent of
greenhouse gas emissions or attributable greenhouse gas emissions shall
be treated as 1 ton of such carbon dioxide equivalent.
``(d) Retirement of Emission Allowances.--As soon as practicable
after each deadline established under subsection (b), the Administrator
shall retire the quantity of emission allowances surrendered by covered
entities pursuant to subsection (b)(3) for the compliance period.
``(e) Total Number of Allowances in Circulation.--As soon as
practicable after the deadline described in subsection (b)(3), the
Administrator shall publish an estimate of the total quantity of
emission allowances held by all persons on the day after such deadline.
``(f) Designated Representatives.--The final regulations
promulgated under section 703 shall require that each covered entity,
and each entity holding emission allowances or receiving emission
allowances from the Administrator under this title, submit to the
Administrator a certificate of representation designating a designated
representative.
``(g) Education and Outreach.--The Administrator shall establish
and carry out a program of education and outreach to assist covered
entities in meeting the requirements of this title. Such program shall
include education with respect to using markets to effectively meet
such requirements.
``(h) Adjustment of Deadline.--The Administrator may, by rule,
establish a deadline for demonstrating compliance in accordance with
subsection (b) later than the date otherwise provided in subsection
(b), as necessary to ensure the availability of greenhouse gas
emissions data, but in no event shall the deadline be later than June 1
of the respective calendar year.
``SEC. 717. PENALTY FOR NONCOMPLIANCE.
``(a) Excess Greenhouse Gas Emissions Penalty.--
``(1) In general.--A covered entity that fails for any year
to demonstrate compliance as required by section 716 by the
applicable deadline shall be liable for payment to the
Administrator of a civil penalty in the amount described in
paragraph (2).
``(2) Amount.--The amount of a penalty required to be paid
under paragraph (1) shall be equal to the product obtained by
multiplying--
``(A) the number of tons of carbon dioxide
equivalent of greenhouse gas emissions and attributable
greenhouse gas emissions for which the covered entity
failed to demonstrate compliance as required by section
716 by the applicable deadline; by
``(B) 3 times the auction clearing price for the
earliest vintage year emission allowances in the last
auction carried out pursuant to section 720 before such
deadline.
``(3) Timing.--A penalty under this subsection shall be
immediately due and payable to the Administrator, without
demand.
``(4) No effect on liability.--A penalty due and payable by
a covered entity under this subsection may not diminish the
liability of the covered entity for any fine, penalty, or
assessment against the covered entity for the same violation
under any other provision of this Act or any other law.
``(b) Excess Emissions Allowances.--A covered entity that fails to
demonstrate compliance for any year, as described in subsection (a)(1),
shall be liable to offset the covered entity's excess greenhouse gases
emissions and attributable greenhouse gas emissions by an equal
quantity of emission allowances during the year after the year in which
such failure to demonstrate compliance occurred.
``(c) Treatment as Separate Violation.--For purposes of this
section, each ton of carbon dioxide equivalent for which a covered
entity fails to demonstrate compliance as required by section 716 shall
be treated as a separate violation.
``SEC. 718. TRACKING SYSTEM.
``The final regulations promulgated under section 703 shall include
a system for issuing, recording, holding, and tracking emission
allowances. Such system shall provide for appropriate publication of
the information in the system on the internet.
``SEC. 719. PROGRAM FLEXIBILITY.
``(a) Permitted Transactions.--Except as otherwise provided in this
title, the lawful holder of an emission allowance may--
``(1) without restriction, sell, exchange, or transfer the
emission allowance;
``(2) subject to subsection (c), hold the emission
allowance; and
``(3) request that the Administrator retire the emission
allowance.
``(b) Banking.--An emission allowance may be used to comply with
section 716 for emissions in--
``(1) the vintage year for the emission allowance; or
``(2) any calendar year subsequent to the vintage year for
the emission allowance.
``(c) Holding Limit.--Beginning after compliance period 1, a
covered entity may retain emission allowances issued for vintage years
in previous compliance periods representing no more than 100 percent of
the total quantity of greenhouse gas emissions and attributable
greenhouse gas emissions, in combination, of the covered entity during
the preceding compliance period.
``(d) No Restriction on Transactions.--The privilege of purchasing,
holding, selling, exchanging, transferring, and requesting retirement
of emission allowances may not be restricted to covered entities,
except as otherwise provided in this title.
``SEC. 720. AUCTION PROCEDURES.
``(a) In General.--For each calendar year for which the
Administrator establishes emission allowances under section 715, the
Administrator shall auction emission allowances in accordance with the
following:
``(1) Frequency; first auction.--Auctions shall be
conducted quarterly, with the first auction to be conducted not
later than March 31, 2027.
``(2) Auction schedule; current and future vintages.--The
Administrator--
``(A) at each quarterly auction under this section,
shall offer both a portion of the emission allowances
for the same vintage year as the year in which the
auction is being conducted and a portion of the
emission allowances for future vintage years;
``(B) may offer at any auction under this section
emission allowances for vintage years of up to 6 years
after the year in which the auction is being conducted;
and
``(C) during a vintage year, shall make available
for auction not less than 50 percent of the emission
allowances established under section 715 for the
vintage year, including any such emissions allowances--
``(i) auctioned on consignment pursuant to
section 721; or
``(ii) made available for auction from the
emissions containment reserve.
``(3) Auction format.--Auctions shall follow a single-
round, sealed-bid, uniform price format.
``(4) Participation; financial assurance.--Auctions shall
be open to any person, except that the Administrator may
establish financial assurance requirements to ensure that
auction participants will perform on their bids.
``(5) Disclosure of beneficial ownership.--Each bidder in
an auction shall be required to disclose the person or entity
sponsoring or benefiting from the bidder's participation in the
auction if such person or entity is, in whole or in part, other
than the bidder.
``(6) Purchase limits.--No person may, directly or in
concert with one or more other participants, purchase more than
5 percent of the emission allowances offered at any quarterly
auction.
``(7) Publication of information.--After an auction, the
Administrator shall, in a timely fashion, publish the
identities of winning bidders, the quantity of emission
allowances obtained by each winning bidder, and the auction
clearing price determined by the Administrator.
``(b) Regulations.--
``(1) Initial regulations.--Not later than 12 months after
the date of enactment of this title, the Administrator, in
consultation with other Federal agencies, as appropriate, shall
promulgate regulations governing the auction of emission
allowances under this section and section 721.
``(2) Revised regulations.--Not earlier than January 1,
2030, the Administrator may, in consultation with other Federal
agencies, as appropriate, at any time, revise the initial
regulations promulgated under paragraph (1).
``(3) Other requirements.--The Administrator may include in
the regulations under this subsection such other requirements
or provisions as the Administrator, in consultation with other
Federal agencies, as appropriate, considers appropriate to
promote effective, efficient, transparent, and fair
administration of auctions.
``(c) Minimum Price.--The minimum price for any emission allowance
auctioned under this section shall be $15 for any auction occurring in
calendar year 2027. The minimum price for an emission allowance
auctioned under this section for any auction occurring after calendar
year 2027 shall be--
``(1) the minimum price applicable under this subsection
for the previous calendar year; plus
``(2) the dollar amount that is equal to--
``(A) such minimum price; multiplied by
``(B) the percent that is the sum of--
``(i) 5 percent; plus
``(ii) the percentage change in the
Consumer Price Index (for all urban consumers)
for the previous calendar year.
``(d) Cost Containment Reserve.--
``(1) In general.--The Administrator shall--
``(A) establish a cost containment reserve;
``(B) deposit into such reserve emission allowances
established pursuant to paragraph (2) and emission
allowances described in subsection (e)(4); and
``(C) make available for auction allowances in such
reserve in accordance with paragraph (4).
``(2) Deposits into reserve.--
``(A) Filling the reserve initially.--The
Administrator shall establish, and deposit into the
cost containment reserve, a quantity of emission
allowances equal to the average annual aggregate
quantity of greenhouse gas emissions in calendar years
2023, 2024, and 2025 from equivalent entities described
in section 711(d) for the respective calendar years.
``(B) Refilling the reserve.--Following any auction
under this section, if any emission allowances that
were offered at the auction were not purchased, the
Administrator shall--
``(i) deposit a quantity, as determined
appropriate by the Administrator, of such
emission allowances in the cost containment
reserve; and
``(ii) retire the remaining quantity of
such emission allowances.
``(C) Special rule.--If any emission allowances
established pursuant to subparagraph (A) remain in the
cost containment reserve, the Administrator shall
retire one such emission allowance for each emission
allowance deposited into the reserve under subparagraph
(B).
``(3) Price triggers.--
``(A) Annual determination.--Each calendar year,
the Administrator shall set at least two price triggers
at which, if the auction clearing price for an auction
under this section would meet or exceed the price
trigger, the Administrator may offer at such auction
emission allowances from the cost containment reserve.
``(B) Lowest price trigger.--The Administrator may
not set a price trigger under subparagraph (A) for a
calendar year that is less than 4 multiplied by the
minimum price of an emission allowance for that
calendar year under subsection (c).
``(4) Release of emission allowances.--If the auction
clearing price for an auction conducted under this section
meets or exceeds a price trigger set under paragraph (3), the
Administrator may, with respect to such a price trigger, offer
at such auction up to 5 percent of the emission allowances in
the cost containment reserve at the beginning of the calendar
year. For any auction under this section, the Administrator may
not offer more than 10 percent of the emission allowances in
the cost containment reserve.
``(e) Emissions Containment Reserve.--
``(1) In general.--The Administrator shall--
``(A) establish an emissions containment reserve;
``(B) each calendar year, deposit into such reserve
10 percent of the emission allowances established under
section 715 for such calendar year; and
``(C) make available for auction emission
allowances in such reserve pursuant to paragraph (3).
``(2) Price triggers.--
``(A) Annual determination.--Each calendar year,
the Administrator shall set at least two price triggers
at which, if the auction clearing price for an auction
under this section would meet or exceed the price
trigger, the Administrator will make available for
auction emission allowances from the emissions
containment reserve.
``(B) Lowest price trigger.--The Administrator may
not set a price trigger under subparagraph (A) for a
calendar year that is less than 125 percent of the
minimum price of an emission allowance for that
calendar year under subsection (c).
``(3) Release of emission allowances.--At any auction under
this section, the Administrator--
``(A) may not offer more than 25 percent of the
emission allowances deposited into the emissions
containment reserve for the respective calendar year at
any of the auctions under this section in such calendar
year; and
``(B) for each price trigger met or exceeded by the
auction clearing price, the Administrator may offer up
to 12.5 percent of the emission allowances deposited
into the emissions containment reserve for the
respective calendar year.
``(4) Allowances not purchased.--At the end of each
calendar year, any emission allowance in the emissions
containment reserve offered but not purchased at auction may be
deposited into the cost containment reserve pursuant to
subsection (d)(2)(B).
``(f) Public Auction Information.--Prior to the first auction under
this section each calendar year, the Administrator shall publish the
following:
``(1) The minimum price for an emission allowance for such
calendar year under subsection (c).
``(2) The number of emission allowances of each vintage
year to be offered at each auction in such calendar year.
``(3) The number and dollar amounts of the price triggers
for such calendar year for the cost containment reserve
established under subsection (d).
``(4) The number and dollar amounts of the price triggers
for such calendar year for the emissions containment reserve
established under subsection (e).
``(5) Any additional information determined to be
appropriate by the Administrator.
``(g) Delegation or Contract.--The Administrator may by delegation
or contract provide for the conduct of auctions under this section
under the Administrator's supervision--
``(1) by other departments or agencies of the Federal
Government; or
``(2) by nongovernmental agencies, groups, or
organizations.
``SEC. 721. CONSIGNMENT AUCTIONS.
``(a) Voluntary Consignment.--Any entity holding emission
allowances may request that the Administrator make available for
auction under section 720 the emission allowances on consignment.
``(b) Mandatory Consignment.--
``(1) Conditional allocations.--Before any emission
allowance allocated under subsection (a) or (b) of section 722
(including any emission allowance transferred to a covered
entity pursuant to section 722(a)(3)(B) or section
722(a)(6)(B)(ii)) may be sold, further transferred, retired, or
used to demonstrate compliance under section 716, such emission
allowance shall be made available for auction on consignment
pursuant to this section and section 720.
``(2) Transparency.--The Administrator shall publish--
``(A) the names of entities holding emission
allowances that are made available for auction on
consignment pursuant to paragraph (1);
``(B) the quantities of emission allowances that
are so made available for auction; and
``(C) any additional information relating to
emission allowances that are so made available for
auction, as determined by the Administrator.
``(c) Proceeds.--Notwithstanding section 3302 of title 31, United
States Code--
``(1) the Federal Government shall, not later than 90 days
after receipt of the proceeds from any auction on consignment
pursuant to subsection (b)(1), transfer such proceeds to the
entity that requested the Administrator offer the respective
emission allowances at an auction under section 720; and
``(2) no such proceeds shall be held by any officer or
employee of the United States or treated for any purpose as
public monies.
``(d) Unsold Emission Allowances.--The Administrator shall return
to the entity offering an emission allowance at auction on consignment
pursuant to this section any such allowance that is not sold at the
auction.
``SEC. 722. ALLOCATION OF EMISSION ALLOWANCES.
``(a) For the Benefit of Consumers.--
``(1) In general.--Beginning with vintage year 2027, the
Administrator shall allocate emission allowances established
each calendar year under section 715(a) to States and Indian
Tribes in the following amounts:
``(A) For compliance period 1, 30 percent of the
emission allowances established for each year of such
compliance period under section 715(a).
``(B) For compliance period 2, 27 percent of the
emission allowances established for each year of such
compliance period under section 715(a).
``(C) For compliance period 3, 24 percent of the
emission allowances established for each year of such
compliance period under section 715(a).
``(D) For compliance period 4, 21 percent of the
emission allowances established for each year of such
compliance period under section 715(a).
``(E) For compliance period 5, 18 percent of the
emission allowances established for each year of such
compliance period under section 715(a).
``(F) For compliance period 6, 15 percent of the
emission allowances established for each year of such
compliance period under section 715(a).
``(G) For compliance period 7, 12 percent of the
emission allowances established for each year of such
compliance period under section 715(a).
``(H) For compliance period 8, 9 percent of the
emission allowances established for each year of such
compliance period under section 715(a).
``(I) For compliance period 9, 6 percent of the
emission allowances established for each year of such
compliance period under section 715(a).
``(J) For compliance period 10, 3 percent of the
emission allowances established for each year of such
compliance period under section 715(a).
``(K) For each subsequent compliance period, 0
percent of the emission allowances established for each
year of such compliance periods under section 715(a).
``(2) Distribution.--Not later than December 31 of each
year, the Administrator shall distribute among States and
Indian Tribes the quantity of emission allowances allocated
under paragraph (1) for the following vintage year, ratably
based on the ratio of--
``(A) the aggregate quantity of greenhouse gases
emitted within a jurisdiction in the second preceding
vintage year associated with the combustion of fuels
for--
``(i) electricity generation; and
``(ii) residential and commercial end uses
of fuels, excluding end uses related to
transportation; to
``(B) the aggregate quantity of greenhouse gases
emitted within the United States in the second
preceding vintage year associated with the combustion
of fuels for--
``(i) electricity generation; and
``(ii) residential and commercial end uses
of fuels, excluding end uses related to
transportation.
``(3) Use of emission allowances.--States and Indian Tribes
shall--
``(A) sell, on consignment in accordance with
section 721, the emission allowances allocated under
this subsection and use the proceeds of such sales
exclusively for the benefit of consumers of electricity
and residential and commercial end users of fuels by
carrying out a--
``(i) cost-effective energy efficiency
program to reduce the use of electricity and
fuel;
``(ii) rebate or other financial incentive
program to encourage adoption and use of low-
emission fuel alternatives, which may include a
program that provides for electrification; or
``(iii) rebate or other direct financial
assistance program, which may include a low-
income ratepayer assistance program; or
``(B) transfer, on a nonreimburseable basis, such
emission allowances to one or more covered entities
responsible for greenhouse gas emissions or
attributable greenhouse gas emissions within the
jurisdiction of the State or Indian Tribe to be used by
such entities exclusively for the benefit of consumers
of electricity and residential and commercial end users
of fuels.
``(4) Administrative expenses.--States and Indian Tribes
may use up to 5 percent of the proceeds from the sale of
emission allowances allocated under this subsection for
administrative purposes in carrying out programs under
paragraph (3).
``(5) Reporting.--Each State and Indian Tribe receiving
emission allowances under this subsection shall submit to the
Administrator, not later than 12 months after each receipt of
such emission allowances, a report, in accordance with such
requirements as the Administrator may prescribe, that--
``(A) describes the use of emission allowances sold
or transferred under paragraph (3), including a
description of the energy efficiency, fuel switching,
and consumer assistance programs supported pursuant to
paragraph (3);
``(B) includes an evaluation, prepared by an
independent third party, of the performance of the
energy efficiency, fuel switching, and consumer
assistance programs supported pursuant to paragraph
(3); and
``(C) describes any transfer of emission allowances
to covered entities under paragraph (3)(B).
``(6) Enforcement.--If the Administrator determines a State
or Indian Tribe is not in compliance with this subsection, the
Administrator may--
``(A)(i) withhold a portion of emission allowances
under this subsection that would otherwise be
distributed to the State or Indian Tribe for the next
vintage year; and
``(ii) distribute such withheld emission allowances
among the remaining States and Indian Tribes ratably in
accordance with the formula under paragraph (2); or
``(B)(i) withhold a portion of emission allowances
under this subsection that would otherwise be
distributed to the State or Indian Tribe for the next
vintage year; and
``(ii) directly transfer, on a nonreimburseable
basis, such withheld emission allowances to one or more
covered entities responsible for greenhouse gas
emissions or attributable greenhouse gas emissions
within the jurisdiction of such State or Indian Tribe
to be used by such entities exclusively for the benefit
of consumers as described in paragraph (3)(A).
``(b) Energy-Intensive, Trade-Exposed Industries.--
``(1) In general.--Beginning with vintage year 2027, the
Administrator shall allocate emission allowances to eligible
industry sectors designated and listed under section 723(a)(1),
to be distributed in accordance with section 723, in the
following amounts:
``(A) For compliance periods 1 and 2, 15 percent of
the emission allowances established for each year of
such compliance periods under section 715(a).
``(B) For compliance periods 3 and 4, 12 percent of
the emission allowances established for each year of
such compliance periods under section 715(a).
``(C) For compliance periods 5 and 6, 9 percent of
the emission allowances established for each year of
such compliance periods under section 715(a).
``(D) For compliance periods 7 and 8, 6 percent of
the emission allowances established for each year of
such compliance periods under section 715(a).
``(E) For compliance periods 9 and 10, 3 percent of
the emission allowances established for each year of
such compliance periods under section 715(a).
``(F) For each subsequent compliance period, 0
percent of the emission allowances established for each
year of such compliance periods under section 715(a).
``(2) Carryover.--After the Administrator distributes
emission allowances pursuant to section 723 for any vintage
year, any emission allowances allocated to eligible industry
sectors designated and listed under section 723(a)(1) pursuant
to this subsection that have not been so distributed shall--
``(A) remain available for distribution pursuant to
section 723 for the following vintage year; and
``(B) be treated as part of the allocation to such
entities for that following vintage year.
``(c) Low-Income Consumers.--Beginning with vintage year 2027, the
Administrator shall make available for auction, pursuant to section
720, 15 percent of the emission allowances established for each year
under section 715(a). The proceeds from such auction shall be made
available to the Secretary of the Treasury to provide rebates under
section 102 of the Climate Pollution Standard and Community Investment
Act of 2025.
``(d) State, Territorial, and Tribal Governments.--Beginning with
vintage year 2027, the Administrator shall make available for auction,
pursuant to section 720, 10 percent of the emission allowances
established for each year under section 715(a), with the proceeds
distributed to States and Indian Tribes pursuant to section 724.
``(e) Local Governments.--Beginning with vintage year 2027, the
Administrator shall make available for auction, pursuant to section
720, 5 percent of the emission allowances established for each year
under section 715(a). The proceeds from such auction shall be made
available to the Secretary of Energy to carry out subtitle E of title V
of the Energy Independence and Security Act of 2007.
``(f) Jurisdictions Hosting High-Level Nuclear Waste.--
``(1) In general.--Beginning with vintage year 2027, the
Administrator shall make available for auction, pursuant to
section 720, 0.5 percent of the emission allowances established
for each year under section 715(a), with the proceeds provided
to each State and Indian Tribe for which a repository where
high-level radioactive waste and spent nuclear fuel are
permanently disposed of is located within the jurisdiction of
the State or Indian Tribe.
``(2) No eligible state or indian tribe.--If no State or
Indian Tribe is eligible to be provided proceeds under this
subsection with respect to a vintage year, such proceeds shall
be provided to States and Indian Tribes pursuant to section
724.
``(3) Multiple states or indian tribes.--If more than one
State or Indian Tribe is eligible for proceeds under this
subsection with respect to a vintage year, such proceeds shall
be distributed ratably among such States and Indian Tribes
based on the ratio of--
``(A) the mass of high-level radioactive waste and
spent nuclear fuel permanently disposed of within the
jurisdictions of the respective States or Indian
Tribes; relative to
``(B) the mass of high-level radioactive waste and
spent nuclear fuel permanently disposed of in the
United States.
``(g) Worker and Community Assistance.--
``(1) In general.--Beginning with vintage year 2027, the
Administrator shall make available for auction, pursuant to
section 720, 5 percent of the emission allowances established
for each year under section 715(a), with the proceeds deposited
into the Worker and Community Assistance Fund established under
section 103 of the Climate Pollution Standard and Community
Investment Act of 2025.
``(2) Determination of additional revenues needed.--For any
year, the Administrator, in consultation with the Secretary of
the Treasury, the Secretary of Labor, and the Director of the
Office of Energy and Economic Transition as established by
section 203 of the Climate Pollution Standard and Community
Investment Act of 2025--
``(A) may determine that additional revenue is
necessary to carry out sections 206, 207, and 208 of
the Climate Pollution Standard and Community Investment
Act of 2025; and
``(B) if emission allowances are available and upon
a determination under subparagraph (A), may offer at an
auction pursuant to section 720, in addition to the
emission allowances made available for auction pursuant
to paragraph (1), up to 5 percent of emissions
allowances established for such year under section
715(a), with the proceeds deposited into the Worker and
Community Assistance Fund established under section 103
of the Climate Pollution Standard and Community
Investment Act of 2025.
``(h) Frontline Communities.--Beginning with vintage year 2027, the
Administrator shall make available for auction, pursuant to section
720, 10 percent of the emission allowances established for each year
under section 715(a), with the proceeds deposited into the Cleaner Air
Community Fund established under section 104 of the Climate Pollution
Standard and Community Investment Act of 2025.
``(i) Negative Emissions Activities.--The Administrator shall make
available for auction, pursuant to section 720, emission allowances
established for each year under section 715(a), with the proceeds
deposited into the Negative Emissions Activities Fund established under
section 105 of the Climate Pollution Standard and Community Investment
Act of 2025, in the following amounts:
``(1) For compliance periods 1 and 2, 2.5 percent of the
emission allowances established for each year of such
compliance periods under section 715(a).
``(2) For compliance periods 3 and 4, 5 percent of the
emission allowances established for each year of such
compliance periods under section 715(a).
``(3) For compliance periods 5 and 6, 7.5 percent of the
emission allowances established for each year of such
compliance periods under section 715(a).
``(4) For compliance periods 7 and 8, 10 percent of the
emission allowances established for each year of such
compliance periods under section 715(a).
``(5) For compliance periods 9 and 10, 15 percent of the
emission allowances established for each year of such
compliance periods under section 715(a).
``(6) For each subsequent compliance period, 20 percent of
the emission allowances established for each year of such
compliance period under section 715(a).
``(j) Energy Innovation Fund.--Beginning with vintage year 2027,
the Administrator shall make available for auction, pursuant to section
720, 2.5 percent of the emission allowances established for each year
under section 715(a), with the proceeds deposited into the Energy
Innovation Fund established under section 106 of the Climate Pollution
Standard and Community Investment Act of 2025.
``SEC. 723. OUTPUT-BASED DISTRIBUTIONS FOR ENERGY-INTENSIVE, TRADE-
EXPOSED INDUSTRIES.
``(a) Designation of Eligible Industrial Sectors.--
``(1) In general.--The Administrator shall--
``(A) designate (using the six-digit classification
system of the North American Industrial Classification
System of 2002 or a superseding classification system)
eligible industrial sectors based on the criteria
described in paragraph (3); and
``(B) maintain a list of such eligible industrial
sectors.
``(2) Eligible industrial sector list.--
``(A) Initial list.--Not later than June 30, 2026,
the Administrator shall publish in the Federal Register
a list of eligible industrial sectors designated under
this subsection.
``(B) Subsequent lists.--Not later than June 30,
2032, and not less than every 6 years thereafter, the
Administrator shall publish in the Federal Register an
updated version of the list published under
subparagraph (A).
``(3) Eligibility criteria.--
``(A) In general.--To be designated as an eligible
industrial sector under this subsection, an industrial
sector shall meet the criteria in--
``(i) both subparagraphs (B) and (C); or
``(ii) subparagraph (D).
``(B) Energy or greenhouse gas intensity.--An
industrial sector meets the criteria in this
subparagraph if the sector has--
``(i) an energy intensity of at least 5
percent, calculated by dividing--
``(I) the cost of purchased
electricity and fuel of such sector; by
``(II) the value of the shipments
of such sector; or
``(ii) a greenhouse gas intensity of at
least 5 percent, calculated by dividing--
``(I) the number of tons of
greenhouse gas emissions (including
direct emissions from fuel combustion,
process emissions, and indirect
emissions from the generation of
electricity used to produce the output
of the sector) of such sector,
multiplied by 20; by
``(II) the value of the shipments
of such sector.
``(C) Trade intensity.--An industrial sector meets
the criteria in this subparagraph if the sector has a
trade intensity of at least 15 percent, calculated by
dividing--
``(i) the value of the imports and exports
of such sector; by
``(ii) the sum of the value of the
shipments and the value of imports of such
sector.
``(D) Very high energy or greenhouse gas
intensity.--An industrial sector meets the criteria in
this subparagraph if the sector has--
``(i) an energy intensity of at least 20
percent, as calculated under subparagraph
(B)(i); or
``(ii) a greenhouse gas intensity of at
least 20 percent, as calculated under
subparagraph (B)(ii).
``(4) Use of data.--When determining the eligibility of an
industrial sector, or a subgroup of entities within an
industrial sector, under this subsection--
``(A) the Administrator shall use the average
annual data for the most recent 4 years for which such
data are available;
``(B) if data are unavailable for any industrial
sector at the six-digit classification level referred
to in paragraph (1)(A), the Administrator may
extrapolate the information necessary to determine the
eligibility of a sector from available data pertaining
to a broader industrial category classified in--
``(i) the North American Industrial
Classification System of 2002; or
``(ii) a superseding classification system;
``(C) the Administrator may request any additional
information, as determined necessary by the
Administrator, from any owner or operator of an entity
in a potentially eligible industrial sector; and
``(D) the Administrator shall seek information from
the owner or operator of an entity in a potentially
eligible industrial sector that produces more than one
product at a facility in order to attribute energy
usage and greenhouse gas emissions associated with the
production of each product type.
``(5) Listing of subgroups as an eligible industrial
sector.--
``(A) Designation of subgroups.--The Administrator
may, pursuant to paragraph (1), designate and list a
subgroup of entities within an industrial sector as a
separate eligible industrial sector if the subgroup of
entities meets the eligibility criteria in paragraph
(3)(A) for designation as an eligible industrial
sector.
``(B) Determination.--In determining under
paragraph (3)(A) whether a subgroup of entities meets
the criteria under subparagraphs (B) and (C) or (D) of
such paragraph, the Administrator shall consider--
``(i) the energy intensity, greenhouse gas
intensity, and trade intensity of the
industrial sector represented by such subgroup
of entities; and
``(ii) the products manufactured by the
subgroup and not the industrial process by
which such products are manufactured, except
that the Administrator may determine a subgroup
of entities that manufacture a product
primarily from virgin material to be listed as
a separate eligible industrial sector from
another subgroup of entities that manufacture
the same product primarily from recycled
material.
``(6) Individual petition for eligibility.--
``(A) Petition.--The owner or operator of an entity
in an industrial sector may petition the Administrator
to designate, pursuant to paragraph (5), one or more
entities in such industrial sector as an eligible
industrial sector.
``(B) Final action.--Not later than 6 months after
the receipt of a petition under subparagraph (A), the
Administrator shall take final action on such petition.
``(7) Special cases.--
``(A) Iron and steel sector.--For purposes of this
section, the Administrator shall consider as being in
different industrial sectors--
``(i) entities using integrated iron and
steelmaking technologies (including coke ovens,
blast furnaces, and other ironmaking
technologies); and
``(ii) entities using electric arc furnace
technologies.
``(B) Metal, soda ash, or phosphate production
classified under more than one naics code.--For
purposes of this section, the Administrator--
``(i) may not aggregate data for the
beneficiation or other processing (including
agglomeration) of metal ores, soda ash, or
phosphate with subsequent steps in the process
of metal, soda ash, or phosphate manufacturing;
``(ii) shall consider the beneficiation or
other processing (including agglomeration) of
metal ores, soda ash, or phosphate to be in
separate industrial sectors from the metal,
soda ash, or phosphate manufacturing sectors;
and
``(iii) shall treat industrial sectors that
beneficiate or otherwise process (including
agglomeration) metal ores, soda ash, or
phosphate as ineligible to receive emission
allowances under this section related to the
activity of extracting metal ores, soda ash, or
phosphate.
``(C) Petroleum refining.--Industrial sectors that
refine petroleum products may not be designated and
listed as an eligible industrial sector under this
section.
``(b) Output-Based Allocation Benchmarks.--
``(1) In general.--The Administrator shall determine the
average greenhouse gas emissions per unit of output for each
eligible industrial sector designated and listed under
subsection (a)(1) (referred to in this subsection as the
`output-based allocation benchmark' for such sector).
``(2) Calculating benchmark.--
``(A) In general.--The Administrator shall
calculate the output-based allocation benchmark for
each eligible industrial sector based on the greenhouse
gas emissions, including direct emissions, process
emissions, and indirect emissions, expressed in tons of
carbon dioxide equivalent, per unit of output, for such
eligible industrial sector using an average of the 3
most recent years of the best available data for such
eligible industrial sector.
``(B) Calculating indirect emissions.--Each person
selling electricity to the owner or operator of an
entity in an eligible industrial sector shall--
``(i) provide the owner or operator of the
entity and the Administrator relevant
greenhouse gas emissions data for such entity;
and
``(ii) where it is not possible to
determine the precise indirect greenhouse gas
emissions for such entity, use the monthly
average data reported by the Energy Information
Administration or collected and reported for
the electric utility serving the entity to
determine greenhouse gas emissions.
``(C) Multiple eligible industrial sectors at one
facility.--The Administrator shall seek information
from the owner or operator of an entity in an eligible
industrial sector that produces more than one product
at a facility in order to attribute energy usage and
greenhouse gas emissions associated with the production
of each product type at such facility.
``(3) Data sources.--For the purposes of this subsection,
the Administrator--
``(A) shall use data--
``(i) reported to the Environmental
Protection Agency;
``(ii) reported to other Federal agencies;
and
``(iii) from each owner or operator of an
entity in an eligible industrial sector; and
``(B) may require an owner or operator of an entity
in an eligible industrial sector to provide such
information as the Administrator finds necessary to
determine the output-based allocation benchmark for
such eligible industrial sector.
``(c) Distribution of Emission Allowances.--
``(1) In general.--For each vintage year, the Administrator
shall--
``(A) distribute pursuant to this section emission
allowances allocated under section 722(b), not later
than October 31 of the preceding calendar year; and
``(B) make such annual distributions to the owner
or operator of each entity responsible for output in an
eligible industrial sector listed under subsection (a)
in the amount of emission allowances calculated under
this subsection.
``(2) Assistance factor.--For the purpose of distributing
emission allowances under this subsection, the Administrator
shall use the following (referred to in this subsection as an
`assistance factor'):
``(A) For compliance period 1, 1.0.
``(B) For compliance period 2, 0.9.
``(C) For compliance period 3, 0.8.
``(D) For compliance period 4, 0.7.
``(E) For compliance period 5, 0.6.
``(F) For compliance period 6, 0.5.
``(G) For compliance period 7, 0.4.
``(H) For compliance period 8, 0.3.
``(I) For compliance period 9, 0.2.
``(J) For compliance period 10, 0.1.
``(K) For each subsequent compliance period, 0.
``(3) Amount of emission allowances.--The amount of
emission allowances to be distributed to the owner or operator
of an entity in an eligible industrial sector shall be
calculated by--
``(A) the output-based allocation benchmark
calculated pursuant to subsection (b) of the industrial
sector of such entity; multiplied by
``(B) the average annual output of such entity for
the 2 years preceding the year of the distribution;
multiplied by
``(C) the appropriate assistance factor under
paragraph (2).
``(4) New entities.--Not later than 24 months after the
date of enactment of this title, the Administrator shall issue
regulations governing the distribution of emission allowances
for the first 4 years of operation of a new entity in an
eligible industrial sector. These regulations shall provide
for--
``(A) the distribution of emission allowances to
such entities based on comparable entities in the same
eligible industrial sector; and
``(B) an adjustment in the third and fourth years
of operation to reconcile the total amount of emission
allowances received during the first 4 years of
operation of the new entity to the amount the entity
would have received during such years of operation had
the appropriate data been available for the first and
second years of operation.
``(d) Total Maximum Distribution.--The Administrator may not
distribute more emission allowances for any vintage year pursuant to
this section than are allocated for use pursuant to section 722(b) for
that vintage year. For any vintage year for which the total emission
allowances calculated for distribution pursuant to this section would
exceed the number of emission allowances allocated pursuant to section
722(b), the Administrator shall reduce each entity's distribution on a
pro rata basis so that the total distribution of emission allowances
under this section equals the number of emission allowances allocated
under section 722(b).
``(e) Cessation of Qualifying Activities.--If, as determined by the
Administrator, an entity is no longer in an eligible industrial
sector--
``(1) the Administrator may not distribute emission
allowances to the owner or operator of such entity under this
section; and
``(2) the owner or operator of such entity shall return to
the Administrator--
``(A) all emissions allowances that have been
distributed under this section to the owner or operator
for future vintage years; and
``(B) a prorated amount of emission allowances
distributed under this section for the vintage year in
which the entity ceases to be in an eligible industrial
sector.
``SEC. 724. ASSISTANCE TO STATE, TERRITORIAL, AND TRIBAL GOVERNMENTS.
``(a) In General.--The Administrator shall annually distribute to
States and Indian Tribes the proceeds of emission allowances auctioned
pursuant to section 722(d). Such proceeds shall be used by States and
Indian Tribes to provide financial assistance and incentives in
accordance with subsection (e) that support the reduction of air
pollution, including criteria air pollutants, hazardous air pollutants,
and emissions of greenhouse gases, or promote adaptation to climate
change.
``(b) Regulations.--Not later than 24 months after the date of
enactment of this section, the Administrator shall promulgate
regulations to carry out this section, including regulations--
``(1) to ensure that each State and Indian Tribe provides
financial assistance and incentives efficiently and in
accordance with this section and applicable Federal laws;
``(2) to prevent waste, fraud, and abuse;
``(3) to identify the forms of financial assistance and
incentives that States and Indian Tribes may provide; and
``(4) to prescribe the form and content of reports that
States and Indian Tribes are required to submit under this
section.
``(c) Intended Use Plans.--
``(1) In general.--After providing for public review and
comment, each State and Indian Tribe receiving proceeds under
this section shall annually prepare a plan that identifies the
intended uses of such proceeds.
``(2) Contents.--An intended use plan prepared under
paragraph (1) shall include--
``(A) a list of the projects or programs intended
to be funded in the next fiscal year that begins after
the date of the plan, including a description of each
project or program; and
``(B) additional information as determined
appropriate by the Administrator.
``(d) Distribution Among States and Indian Tribes.--
``(1) In general.--Not later than September 30 of each
calendar year, the Administrator shall, in accordance with this
section, distribute the proceeds of emission allowances
auctioned pursuant to section 722(d) each year in accordance
with the following formula:
``(A) 25 percent shall be divided equally among the
States.
``(B) 50 percent of the emission allowances shall
be distributed ratably among the States and Indian
Tribes based on the population of each State and Indian
Tribe, as contained in the most recent census data
available from the Bureau of the Census at the time the
Administrator calculates the formula for distribution.
``(C) 25 percent shall be distributed ratably among
the States and Indian Tribes on the basis of the energy
consumption of each State and Indian Tribe as contained
in the most recent State Energy Data System report of
the Energy Information Administration (or such
alternative reliable source as the Administrator may
designate).
``(2) Minimum amounts for indian tribes.--The Administrator
shall ensure that not less than 5 percent of the total proceeds
distributed to States and Indian Tribes in each calendar year
is distributed to Indian Tribes.
``(3) Recalculation of distribution amounts.--The
Administrator shall recalculate the amounts to be distributed
as determined by the formula in paragraph (1) not less
frequently than once every 5 years.
``(e) Uses.--The proceeds distributed to each State and Indian
Tribe pursuant to this section may be used to provide grants, tax
credits, production incentives, loans, loan guarantees, forgivable
loans, interest rate buydowns, and other types of financial assistance
and incentives that support or promote the following:
``(1) Zero-emission electricity generation, including--
``(A) research, development, and demonstration of
zero-emission electricity generation projects; and
``(B) deployment of community-scale, low-income,
and distributed generation zero-emission electricity
generation projects.
``(2) Energy storage projects.
``(3) Energy efficiency programs.
``(4) Grid modernization, including support for integration
of renewable energy resources and distributed generation,
demand response, demand side management, and systems analysis.
``(5) Deployment of zero-emission vehicles, including
light-, medium-, and heavy-duty vehicles.
``(6) Charging, refueling, and grid infrastructure
enhancement to support zero-emission vehicles.
``(7) Design, construction, and maintenance to improve the
resilience of existing and new infrastructure, including public
health infrastructure, to the impacts of climate change,
including wildfires, drought, flooding, and other extreme
weather events.
``(8) Electrification of residential and commercial
products that reduces demand for natural gas, heating oil,
gasoline, diesel fuel, or propane.
``(9) Wildlife and natural resource adaptation, including--
``(A) protection, maintenance, or restoration of
natural infrastructure such as wetlands, reefs, and
barrier islands;
``(B) conservation or maintenance of public lands;
``(C) protection and restoration of watersheds;
``(D) floodplain restoration and flood protection
in densely populated urban areas; and
``(E) mitigation of ocean-related climate change
effects, including effects on bays, estuaries,
populated barrier islands, and other ocean-related
features.
``(10) Sustainable agricultural programs, including
promotion of soil health.
``(11) Food waste reduction programs.
``(12) Sustainable forest management and land use programs.
``(13) Reduction, capture, and use of methane from
landfills and wastewater treatment facilities.
``(14) Material conservation programs.
``(15) Providing the non-Federal share of the cost of
surface transportation capital projects that support public
transportation and transit programs, including support for bike
lanes and pathways, pedestrian pathways, and bike share
programs provided that not more than 10 percent of assistance
distributed to each State and Indian Tribe pursuant to this
section shall be used for such purposes.
``(16) Construction, expansion, and retooling of facilities
that manufacture components for clean energy technology
systems.
``(17) Installation, retrofit, or conversion of equipment
to enable manufacturing facilities to manufacture zero- or low-
emission energy-intensive industrial products.
``(18) Any other program, including a State program, that
reduces air pollution, deploys clean energy or energy efficient
technologies, or enhances the resilience of infrastructure, as
determined by the Administrator.
``(f) Administrative Costs.--Not more than 5 percent of the
proceeds distributed to States and Indian Tribes in any year may be
used for the purposes of administrative expenses.
``(g) Maintenance of Effort.--A State or Indian Tribe's use of
proceeds distributed by this section shall include assurances that the
State or Indian Tribe will maintain support for existing activities
carried out by such State or Indian Tribe in future years at least at
the levels of such support that is the average of such State or Indian
Tribe's support for such programs in the 3 years preceding the date of
enactment of this section. The Administrator may waive the requirement
in this subsection for the purpose of relieving fiscal burdens on
States and Indian Tribes that have experienced a precipitous decline in
financial resources.
``(h) Assistance to Disadvantaged and Rural Communities.--Not less
than 50 percent of funding distributed to each State and Indian Tribe
shall be used to provide assistance to activities located within
disadvantaged or rural communities, as determined by the Administrator.
``(i) Reporting.--Each State and Indian Tribe shall submit to the
Administrator a report every 2 years on the use of proceeds received
under this section in accordance with such requirements as the
Administrator may prescribe.
``(j) Enforcement.--If the Administrator determines that a State or
Indian Tribe is not in compliance with this section, the Administrator
may withhold proceeds that are otherwise to be distributed to such
State or Indian Tribe. Proceeds withheld pursuant to this subsection
may be distributed among the remaining States and Indian Tribes in
accordance with the formula determined pursuant to subsection (d).
``SEC. 725. PROGRAM REVIEW.
``The Administrator shall--
``(1) in conjunction with the establishment of emission
allowances under section 715(c)(2) for a compliance period,
conduct a review of the implementation of this title;
``(2) in conducting each such review, seek public comment;
and
``(3) upon completion of each such review, submit to
Congress a report with the results of such review, including
recommendations, if any, for legislation or administrative
actions appropriate to achieve the targets under section 711(a)
and the reductions under section 711(b).
``SEC. 726. ADVISORY BOARD.
``(a) Establishment.--The Administrator shall establish an advisory
board to provide independent advice and recommendations to the
Environmental Protection Agency with respect to the administration of
this title.
``(b) Membership.--The advisory board shall be composed of members
representing--
``(1) community-based organizations, including such
organizations that carry out initiatives relating to
environmental justice;
``(2) State governments;
``(3) Tribal Governments;
``(4) local governments;
``(5) labor organizations;
``(6) nongovernmental and environmental organizations;
``(7) agricultural organizations;
``(8) private sector organizations, including
representatives of industries and businesses required to comply
with the requirements of this title; and
``(9) experts in the field of--
``(A) socioeconomic analysis;
``(B) health and environmental effects;
``(C) pollution monitoring and exposure evaluation;
``(D) environmental law and civil rights law;
``(E) environmental health science research; or
``(F) agricultural science research.
``(c) FACA.--Chapter 10 of title 5, United States Code (commonly
known as the Federal Advisory Committee Act), shall apply to the
advisory board.
``PART C--EMISSIONS REDUCTIONS IN EVERY COMMUNITY
``SEC. 731. DEFINITIONS.
``In this part:
``(a) Cleaner Air Community.--The term `Cleaner Air Community'
means a community designated as a Cleaner Air Community under section
733.
``(b) Cleaner Air Community Fund.--The term `Cleaner Air Community
Fund' means the fund established under section 104 of the Climate
Pollution Standard and Community Investment Act of 2025.
``(c) Community.--The term `community' means a county,
municipality, town, township, village, parish, borough, or other unit
of general government below the State level.
``SEC. 732. USE OF FUNDS FROM THE CLEANER AIR COMMUNITY FUND.
``(a) In General.--
``(1) Assistance.--Beginning in 2028 and each year
thereafter, the Administrator shall provide assistance pursuant
to this section using amounts made available in the Cleaner Air
Community Fund.
``(2) Priority.--In providing assistance pursuant to this
section using amounts made available in the Cleaner Air
Community Fund, the Administrator shall prioritize providing
assistance to communities designated as a Cleaner Air Community
under section 733.
``(b) Environmental and Climate Justice Block Grants.--The
Administrator is authorized to use amounts made available in the
Cleaner Air Community Fund to award grants and provide technical
assistance under section 138.
``(c) Enhanced Air Pollution Monitoring.--
``(1) In general.--The Administrator is authorized to award
grants using amounts made available in the Cleaner Air
Community Fund to local and State governments, Indian Tribes,
air pollution control agencies, and other public or nonprofit
private agencies, institutions, and organizations with
appropriate technical capacity to support additional emissions
monitoring in disadvantaged communities, as determined by the
Administrator.
``(2) Applications.--To be eligible to receive a grant
under this subsection, an entity described in paragraph (1)
shall submit an application to the Administrator at such time,
in such form, and containing such information and assurances as
the Administrator may require.
``(3) Prioritization of use of funds.--The Administrator
shall prioritize awarding grants under this subsection to
entities that propose, in an application submitted under
paragraph (2), to use grants to--
``(A) improve the reporting, monitoring, and
enforcement of the requirements of this title;
``(B) improve air quality monitoring, including by
the use of hyperlocal air monitoring equipment and
techniques, in locations determined by the
Administrator to have insufficient monitoring equipment
and capabilities; or
``(C) inform management decisions, such as the
placement or relocation of stationary air pollution
monitors, transportation or land use planning,
investments in mitigating air pollution sources, and
other planning decisions, by relevant local, State, and
Tribal governments.
``(d) Development of Emissions Reduction Plans.--
``(1) In general.--The Administrator is authorized to award
grants and provide technical assistance using amounts made
available in the Cleaner Air Community Fund to local and State
governments, Indian Tribes, air pollution control agencies, and
other public or nonprofit private agencies, institutions, and
organizations that are located in a Cleaner Air Community to
develop multiyear plans to reduce air pollution in such
community.
``(2) Plan contents.--A plan developed under paragraph (1)
shall include--
``(A) a proposal to develop effective and practical
processes, methods, and devices to reduce, prevent, or
control air pollution, including greenhouse gas
emissions, within a Cleaner Air Community; and
``(B) a description of the expected use of funds to
develop such proposals.
``(3) Community engagement.--Any entity receiving a grant
to develop a multi-year plan under paragraph (1) shall
demonstrate sufficient community engagement with local
residents in the development of a plan.
``(e) Implementation of Emissions Reduction Plans.--The
Administrator is authorized to award grants using amounts made
available in the Cleaner Air Community Fund to local and State
governments, Indian Tribes, air pollution control agencies, and other
public or nonprofit private agencies, institutions, and organizations
that received a grant and developed a plan under subsection (d)--
``(1) if the Administrator determines such entity
demonstrated sufficient community engagement with local
residents in the development of the plan; and
``(2) for purposes of implementing the plan.
``(f) Community-Based Health Services in Cleaner Air Communities.--
The Administrator, in consultation with the Secretary of Health and
Human Services, is authorized to award grants using amounts made
available in the Cleaner Air Community Fund to local and State
governments, Indian Tribes, air pollution control agencies, and other
public or nonprofit private agencies, institutions, and organizations,
which shall be used to--
``(1) support community-based health centers, health
monitoring, and other health care services located in a Cleaner
Air Community; and
``(2) address the health impacts of individuals who reside
or work in a Cleaner Air Community.
``SEC. 733. CLEANER AIR COMMUNITIES.
``(a) Designation of Cleaner Air Communities.--Beginning after
compliance period 1, the Administrator shall designate, for a period of
5 years, communities as Cleaner Air Communities in accordance with this
section.
``(b) Eligibility.--A community shall be eligible to be designated
as a Cleaner Air Community under subsection (a) if the community, or a
census tract within such community, experiences an increase of
emissions of any greenhouse gas, hazardous air pollutant, or criteria
air pollutant on an annual basis over the average annual quantity of
emissions of the pollutant during the previous compliance period.
``(c) Petition for Designation.--Any person may petition the
Administrator to designate a community as a Cleaner Air Community under
subsection (a).
``(d) Consideration of Petition.--The Administrator shall review a
petition under subsection (c) and make a determination on such petition
not later than 1 year after receiving such petition.
``(e) Redesignation of Cleaner Air Communities.--Not later than 4
years after a community is designated as a Cleaner Air Community, the
Administrator shall determine whether to extend the designation of the
community as a Cleaner Air Community for another 5-year period
beginning at the end of the last year during which that community
experienced an increase of pollutants as described in subsection (b).
``SEC. 734. ANNUAL REPORT TO CONGRESS.
``Beginning in 2028, not later than 180 days after the end of each
year, the Administrator shall submit to Congress a report for the
previous year, which shall include--
``(1) a description of each grant awarded and the technical
assistance provided under this part or section 138 pursuant to
this part;
``(2) the amount of funding that remains available in the
Cleaner Air Community Fund;
``(3) an assessment of the air quality monitoring needs of
disadvantaged communities, as determined by the Administrator,
including a determination whether additional air quality
monitoring is necessary to determine the eligibility of
communities to be designated as Cleaner Air Communities; and
``(4) an assessment of the air quality and public health of
Cleaner Air Communities and efforts to reduce air pollution in
such communities.
``SEC. 735. REGULATIONS.
``The Administrator shall issue any regulations necessary to
implement this part not later than 36 months after the date of
enactment of this part.
``PART D--NEGATIVE EMISSIONS ACTIVITIES
``SEC. 741. DEFINITIONS.
``In this part:
``(1) Beginning producer.--The term `beginning producer'
means an individual that--
``(A)(i) has not operated a farm or ranch; or
``(ii) has operated a farm or ranch for not more
than 10 years; and
``(B) meets such other criteria as the
Administrator, in consultation with the Secretary, may
establish.
``(2) Eligible carbon removal technology.--
``(A) In general.--The term `eligible carbon
removal technology' means any equipment, technique, or
technology, placed into service after January 1, 2025,
that--
``(i) captures carbon dioxide directly from
ambient air or seawater, as determined
appropriate by the Administrator; and
``(ii) permanently stores such captured
carbon dioxide--
``(I) in a subsurface geologic
formation or in materials, including
building materials and mineralized
carbon materials; or
``(II) using other permanent
storage methods, as determined by the
Administrator.
``(B) Exclusion.--The term `eligible carbon removal
technology' does not include any equipment, technique,
or technology that--
``(i) captures carbon dioxide which is
deliberately released from naturally occurring
subsurface springs; or
``(ii) stores or uses carbon dioxide for
enhanced oil recovery.
``(3) Eligible land.--
``(A) In general.--The term `eligible land' means
land on which agricultural commodities, livestock, or
forest-related products are produced.
``(B) Inclusions.--The term `eligible land'
includes the following:
``(i) Cropland.
``(ii) Grassland.
``(iii) Rangeland.
``(iv) Pasture land.
``(v) Nonindustrial private forest land.
``(vi) Other agricultural land (including
cropped woodland, marshes, environmentally
sensitive areas, and agricultural land used for
the production of livestock) on which
identified or expected resource concerns
related to agricultural production could be
addressed through a contract under the Program
as determined by the Administrator, in
consultation with the Secretary.
``(4) Eligible practice.--The term `eligible practice'
means an activity included on the list established under
section 744(a).
``(5) High-quality project.--The term `high-quality
project' means carrying out one or more eligible practices,
which result in (as determined by the Administrator)
verifiable, permanent, and additional reductions or avoidance
of greenhouse gas emissions or sequestration of greenhouse
gases.
``(6) Payment.--The term `payment' means financial
assistance provided to a producer for performing one or more
practices under this part.
``(7) Producer.--The term `producer' means an individual or
entity capable of carrying out an eligible practice.
``(8) Program.--The term `Program' means the program
established under section 743.
``(9) Secretary.--The term `Secretary' means the Secretary
of the Department of Agriculture.
``(10) Socially disadvantaged producer.--The term `socially
disadvantaged producer' means a farmer or rancher who is a
member of a group whose members have been subjected to racial
or ethnic prejudice because of their identity as members of the
group without regard to their individual qualities.
``SEC. 742. PURPOSES.
``The purposes of the Program are to incentivize activities that
result in reduction or avoidance of greenhouse gas emissions, or
sequestration of greenhouse gases, and to optimize environmental
benefits, by--
``(1) utilizing methodologies, in consultation with the
Secretary for agricultural production and forest management
practices on eligible land, for each eligible practice type for
quantifying and verifying potential and actual reduction and
avoidance of greenhouse emissions and sequestration of
greenhouse gases;
``(2) avoiding, to the maximum extent practicable, the need
for regulatory programs by assisting producers implementing
eligible practices on eligible land in reducing or avoiding
greenhouse gas emissions, or sequestering of greenhouse gases
in order to achieve economy-wide greenhouse gas emissions
reduction targets pursuant to section 702;
``(3) avoiding or minimizing, to the maximum extent
practicable, adverse effects on human health or the environment
resulting from the implementation of practices under the
Program;
``(4) assisting producers implementing eligible practices
on eligible land with adaptation to changing climatic
conditions and mitigating against increasing weather volatility
and drought; and
``(5) enabling the participation of beginning producers and
socially disadvantaged producers in the Program.
``SEC. 743. ESTABLISHMENT.
``(a) In General.--The Administrator, in consultation with the
Secretary with respect to agricultural production and forest management
practices on eligible land, shall establish a program to enter into
contracts with producers to carry out practices using amounts made
available in the Negative Emissions Activities Fund.
``(b) Regulations.--Not later than 2 years after the date of
enactment of this part, the Administrator shall promulgate regulations
to carry out this part.
``SEC. 744. ELIGIBLE PRACTICES.
``(a) List of Eligible Practices.----
``(1) Listing.--The Administrator, in consultation with the
Secretary with respect to agricultural production and forest
management activities on eligible land, shall establish, and
may periodically revise, a list of activities that are eligible
practices.
``(2) Requirements.--The Administrator may include an
activity as an eligible practice on the list established under
paragraph (1) if the Administrator, in consultation with the
Secretary with respect to agricultural production and forest
management practices on eligible land, determines the activity
can reduce or avoid greenhouse gas emissions or sequester
greenhouse gases, consistent with the purposes described in
section 742.
``(3) Modifications to list.--The Administrator may at any
time, by rule, add or remove an activity to or from the list of
eligible practices in accordance with paragraph (2).
``(b) Establishment of Initial List.--In establishing the initial
list under subsection (a), the Administrator, in consultation with the
Secretary with respect to agricultural production and forest management
practices on eligible land, shall give priority to consideration of
activities for which there are well developed methodologies for
quantifying the reduction or avoidance of greenhouse gas emissions or
sequestration of greenhouse gases with such modifications as the
Administrator considers appropriate. At a minimum, the initial list
prepared under this section shall include the following activities that
reduce or avoid greenhouse gas emissions or sequester greenhouse gases:
``(1) Agricultural, grassland, and rangeland sequestration
and management activities on eligible land.
``(2) Changes in carbon stocks attributed to land use
change and forestry activities on eligible land.
``(3) Manure management and disposal on eligible land.
``(4) Livestock management on eligible land.
``(5) Eligible carbon removal technologies.
``(c) Methodologies.--
``(1) Establishment.--The Administrator, in consultation
with the Secretary with respect to agricultural production and
forest management practices on eligible land, shall establish
for each type of eligible practice a standardized methodology
for determining the quantity of reduction or avoidance of
greenhouse gas emissions, or sequestration of greenhouse gases,
expected to be achieved by the type of eligible practice,
including protocols for monitoring, reporting, and verifying
performance, and accounting for uncertainty.
``(2) Preexisting methodologies.--In establishing a
standard methodology for each type of eligible practice under
paragraph (1), the Administrator shall consider basing such
standard methodology on methodologies that exist as of the date
of enactment of this part.
``SEC. 745. APPLICATIONS.
``(a) In General.--The Administrator may enter into a contract with
a producer under section 746 if--
``(1) the producer submits to the Administrator an
application that proposes to carry out one or more eligible
practices; and
``(2) the Administrator approves such application under
this section.
``(b) Evaluation Criteria.--The Administrator shall develop
criteria for evaluating applications submitted under subsection (a),
which shall include consideration of the potential quantity and cost
effectiveness of reduction or avoidance of greenhouse gas emissions, or
sequestration of greenhouse gases, from the proposed eligible
practices.
``(c) Prioritization of Applications.--In evaluating applications
submitted under subsection (a), the Administrator shall prioritize
approving applications based on--
``(1) the anticipated quantity of reduction or avoidance of
greenhouse gas emissions, or sequestration of greenhouse gases
from the proposed eligible practices;
``(2) the cost to carry out the proposed eligible practices
relative to other, similar eligible practices;
``(3) how effectively and comprehensively the proposed
eligible practices are expected to achieve the reduction or
avoidance of greenhouse gas emissions, or sequestration of
greenhouse gases on eligible land;
``(4) the inclusion of high-quality projects; and
``(5) how well the proposed eligible practices fulfill the
purposes of the Program.
``(d) Grouping of Applications.--To the greatest extent
practicable, the Administrator shall evaluate applications that propose
to carry out the same or similar eligible practices together.
``(e) Geographic Scope.--The Administrator shall, to the extent
practicable, seek to approve applications from a diversity of
geographic regions of the United States, taking into account factors
such as soil type, cropping history, and water availability.
``(f) Set Aside for Use of Eligible Carbon Removal Technology.--The
Administrator shall ensure that, each year, not less than 20 percent of
the amount provided under contracts entered into under section 746 be
provided to carry out eligible practices that use eligible carbon
removal technology.
``(g) Reverse Auction.--
``(1) In general.--The Administrator may approve
applications submitted under subsection (a) using a reverse
auction mechanism to promote the most cost effective means of
achieving the anticipated reduction or avoidance of greenhouse
gas emissions, or sequestration of greenhouse gases, pursuant
to contracts entered into under section 746.
``(2) Multifactor bidding.--When using a reverse auction
mechanism under paragraph (1), the Administrator may
incorporate noncost factors into the auction system, and
prioritize approving applications that propose to carry out
eligible practices that--
``(A) maximize the net greenhouse gas emissions
reductions;
``(B) minimize the amount of greenhouse gas
emissions released by carrying out the eligible
practices;
``(C) would increase the diversity of types of
eligible practices carried out pursuant to section 746;
``(D) would be carried out in geographically
diverse areas;
``(E) support economic development or job creation
in disadvantaged or rural communities, as determined by
the Administrator;
``(F) include robust public engagement and
community benefits commitments;
``(G) provide benefits to beginning producers and
socially disadvantaged producers; and
``(H) include high-quality projects.
``(h) Third-Party Aggregators.--The Administrator may, when
evaluating applications under this section, approve applications from
entities that aggregate eligible practices from multiple producers.
``SEC. 746. CONTRACTS AND PAYMENTS.
``(a) Contracts.--After approving an application under section 745,
the Administrator shall seek to enter into a contract with the producer
that submitted the application.
``(b) Required Provisions.--A contract entered into under
subsection (a) shall--
``(1) require the producer to develop and implement a
program plan which--
``(A) shall be approved by the Administrator, and
may include such conditions the Administrator may
require; and
``(B) shall provide for how the producer will--
``(i) carry out the eligible practices
proposed in the application;
``(ii) manage, maintain, and improve such
eligible practices for the duration of the
contract;
``(iii) provide for the verification of the
actual quantity of greenhouse gas emissions
reduced or avoided, or greenhouse gases
sequestered, from such eligible practices in
accordance with section 747(b); and
``(iv) adequately mitigate environmental
impacts (including impacts on biodiversity,
land use, and water quality) with carrying out
such eligible practices;
``(2) require the producer to maintain and supply
information required by the Administrator to determine
compliance with, and the effectiveness of, the program plan;
``(3) if the producer transfers the rights, title, and
interests in eligible land subject to the contract (unless the
transferee enters into an agreement with the Administrator to
assume all obligations of the contract), require the producer
to refund all payments received under the Program, as
determined by the Administrator;
``(4) prohibit the producer from using payments made under
subsection (e) to conduct any activities that would undermine
the purposes of the Program;
``(5) include a provision that a producer may not be
considered in violation of the contract for failure to comply
with the contract due to circumstances beyond the control of
the producer, including a disaster or other similar condition,
as determined by the Administrator;
``(6) provide for annual payments to the producer in
accordance with subsection (e); and
``(7) include any additional provisions the Administrator
determines are necessary to carry out the Program.
``(c) Renewal.--If the Administrator determines that further
implementation of a producer's program plan would continue to result in
cost-effective reduction or avoidance of greenhouse gas emissions, or
sequestration of greenhouse gases, the Administrator may seek to renew
the existing contract in the last year of the contract term if the
producer--
``(1) demonstrates compliance with the provisions of the
existing contract; and
``(2) agrees to adopt and continue to integrate new or
improved eligible practices, as determined by the
Administrator.
``(d) Term of Contracts.--
``(1) In general.--A contract entered into or renewed under
this section shall be for a term of--
``(A) not less than 5 years; and
``(B) not more than 20 years.
``(2) Factors for determining contract duration.--The
Administrator shall determine the term of a contract entered
into or renewed under this section based on--
``(A) the eligible practices included in the
producer's program plan;
``(B) the opportunities for greenhouse gas emission
reduction or avoidance, or sequestration of greenhouse
gases, from such eligible practices; and
``(C) other factors determined appropriate by the
Administrator.
``(e) Annual Payments.--
``(1) In general.--The Administrator shall provide annual
payments to a producer with which the Administrator enters into
or renews a contract under this section using amounts made
available in the Negative Emissions Activities Fund.
``(2) Amount.--
``(A) Primary consideration.--The Administrator
shall determine the amount of an annual payment under
paragraph (1) based on--
``(i) the expected quantity of greenhouse
gas emission reduction or avoidance, or
sequestration of greenhouse gases, resulting
from the eligible practices included in the
program plan;
``(ii) the amount and scale of high-quality
projects included in the program plan; and
``(iii) if applicable, the results of a
reverse auction carried out pursuant to section
745(g).
``(B) Additional considerations.--In determining
the amount of an annual payment under this paragraph,
the Administrator may also consider--
``(i) costs incurred by the producer
associated with developing and implementing the
program plan, including costs associated with
plans, designs, materials, equipment, and
labor;
``(ii) income forgone by the producer from
eligible land; and
``(iii) the extent to which compensation
would ensure long-term continued maintenance,
management, and improvement of one or more
practices included in the program plan.
``(C) Additional payments for maintenance of
program plans.--If the Administrator and a producer
agree to renew a contract pursuant to subsection (c),
the Administrator may provide the producer a separate
payment for purposes of maintaining the previously
implemented program plan. Notwithstanding subparagraph
(A), such separate payment may be based on actual
measured and verified greenhouse gas emission reduction
or avoidance, or sequestration of greenhouse gases.
``(3) Advance payments.--
``(A) In general.--The Administrator may, if
requested by a producer, provide a portion of an annual
payment in advance for costs related to purchasing
materials, equipment, or contracting in order to
implement one or more eligible practices included in
the producer's program plan.
``(B) Return of funds.--If a payment provided in
advance under subparagraph (A) is not expended during
the 90-day period beginning on the date of receipt of
the payment, the remaining amounts of such payment
shall be returned to the Negative Emissions Activities
Fund within a reasonable timeframe, as determined by
the Administrator.
``(C) Notification and documentation.--The
Administrator shall--
``(i) notify each producer at the time of
enrollment in the Program of the option to
receive advance payments; and
``(ii) document each request to receive
advance payments.
``(4) Financial assistance from other sources.--
``(A) In general.--Any payments received by a
producer from a State, private organization, or person
for the implementation of one or more eligible
practices on eligible land shall be in addition to the
payments provided to the producer pursuant to this
subsection.
``(B) Prohibition on double counting.--The
Administrator may require, as a condition of the
contract, that a producer who receives payments for
implementing eligible practices under this section may
not also use such eligible practices as a compliance
mechanism for another greenhouse gas emissions
management program, including any foreign, Federal,
State, local, or voluntary private greenhouse gas
emissions management program, if such use would
undermine the goal established by section 702.
``(5) Limitation of payments.--The Administrator may not
make payments under this section in excess of the amounts made
available in the Negative Emissions Activities Fund. If the
aggregate of such payments in any calendar year will exceed
such amount, the Administrator shall reduce the amount of
payments to the extent necessary to comply with the requirement
in the first sentence.
``(f) Modification or Termination of Contracts.--
``(1) Voluntary modification or termination.--The
Administrator may modify or terminate a contract entered into
or renewed with a producer under this section if--
``(A) the producer agrees to the modification or
termination; and
``(B) the Administrator determines that the
modification or termination is in the public interest.
``(2) Involuntary termination.--The Administrator may
terminate a contract under the program if the Administrator
determines that the producer violated the contract.
``(3) Repayment.--If a contract is terminated, the
Administrator may--
``(A) allow the producer to retain payments already
received under the contract; or
``(B) require repayment, in whole or in part, of
payments received.
``(g) Enforcement of Terms and Conditions.--
``(1) Termination.--Notwithstanding subsection (f), if the
Administrator determines that a producer violated a term or
condition of a contract entered into or renewed under this
section, and such violation warrants termination of the
contract (as determined by the Administrator), the producer--
``(A) may not receive payments under the contract;
and
``(B) shall refund to the Administrator all or a
portion of the payments received by the owner or
operator under the contract, including any interest on
the payments, as determined by the Administrator.
``(2) Other penalties.--Notwithstanding subsection (f), if
the Administrator determines that a producer violated a term or
condition of a contract entered into or renewed under this
section, but such violation does not warrant termination of the
contract, the producer shall refund to the Administrator, or
accept adjustments to, the payments provided to the owner or
operator, as the Administrator determines to be appropriate.
``SEC. 747. DUTIES OF THE ADMINISTRATOR.
``(a) Technical Assistance.--
``(1) In general.--To the extent appropriate, the
Administrator, in consultation with the Secretary with respect
to agricultural production and forest management practices on
eligible land, shall assist producers with implementing program
plans by providing to producers technical assistance,
education, and outreach, including with respect to information
and training to aid in the design, installation, and
implementation of program plans.
``(2) Prioritized producers.--The Administrator shall
prioritize providing technical assistance, education, and
outreach under paragraph (1) to beginning producers and
socially disadvantaged producers.
``(b) Verification of Program Plans.--The Administrator shall
establish requirements for how producers may verify the actual quantity
of greenhouse gas emissions reduced or avoided, or greenhouse gases
sequestered, from eligible practices under section 746(b)(1)(B). The
producer shall submit to the Administrator a report prepared by a
third-party verifier accredited pursuant to paragraph (2) that provides
such information as the Administrator requires to verify such
quantities.
``(1) Schedule.--The Administrator shall prescribe a
schedule for the submission of reports under this subsection,
which shall occur not less than once during the term of each
contract.
``(2) Verifier accreditation.--
``(A) In general.--The Administrator shall
establish a process and requirements for periodic
accreditation of third-party verifiers to ensure that
such verifiers are professionally qualified and have no
conflicts of interest.
``(B) Federal accreditation.--The process and
requirements established under subparagraph (A) may
include--
``(i) accreditation standards for third-
party verifiers; and
``(ii) training and testing requirements
for third-party verifiers.
``(C) Public accessibility.--Each third-party
verifier meeting the requirements for accreditation
established pursuant to subparagraph (A) shall be
listed in a publicly accessible database, which shall
be maintained and updated by the Administrator.
``(c) Audits.--The Administrator shall conduct, on an annual basis,
random audits of eligible activities carried out by producers under
program plans and the activities of third-party verifiers. At a
minimum, the Administrator shall conduct audits each year of a
representative sample of eligible activities and geographical areas.
Nothing in this subsection prevents the Administrator from conducting
any other audit the Administrator considers to be necessary.
``(d) Assessment of Quantification Methodologies.--The
Administrator shall regularly assess the verification requirements
established under subsection (b) and develop new requirements for
verification as needed in order to effectively carry out this part.
``(e) Coordination With Other Federal Agencies.--In carrying out
this part, the Administrator shall coordinate activities of the
Environmental Protection Agency with the Department of Agriculture and
other relevant Federal agencies implementing conservation programs to
align protocols, decrease administrative burdens, and increase
enrollment in beneficial climate practices.
``SEC. 748. REPORTING AND DATABASE.
``(a) Report Required.--Not later than January 1, 2030, and every 2
years thereafter, the Administrator shall submit to Congress a report
on the status of eligible practices funded under this part, including--
``(1) the amount of payments awarded;
``(2) results of the eligible practices associated with
such payments, including estimates of the quantity of reduction
or avoidance of greenhouse gas emissions, or increases in
sequestration of greenhouse gases; and
``(3) recommendations to improve the effectiveness of such
eligible practices.
``(b) Practice Database.--
``(1) In general.--The Administrator shall use the data
reported under subsection (a) to establish and maintain a
publicly available database that provides--
``(A) a compilation and analysis of eligible
practices being carried out under program plans; and
``(B) a list of recommended eligible practices.
``(2) Privacy.--Information provided under paragraph (1)
shall be transformed into a statistical or aggregate form so as
to not include any identifiable or personal information of
individual producers.
``SEC. 749. PROGRAM REVIEW AND REVISION.
``At least once every 5 years, the Administrator, in consultation
with the Secretary with respect to agricultural production and forest
management practices on eligible land, shall review and, as
appropriate, update and revise--
``(1) the list of eligible practices established under
section 744(a);
``(2) the methodologies established under section 744(c);
``(3) the criteria to evaluate applications under section
745;
``(4) the Program, as necessary, to increase participation
by beginning producers and socially disadvantaged producers;
and
``(5) any other requirements established under this part to
ensure the effectiveness of achieving the purposes in section
742, including by incorporating new data and evidence about
actual emissions outcomes of practices to improve model
certainty and the accuracy of emission reduction estimates.
``PART E--INTERNATIONAL RESERVE ALLOWANCE PROGRAM
``SEC. 751. DEFINITIONS.
``In this part:
``(1) Covered article.--The term `covered article' means
any good which--
``(A) is imported into the United States; and
``(B) contains greater than 100 pounds of any
combination of any covered primary good.
``(2) Covered imported good.--The term `covered imported
good' means--
``(A) a covered primary good; or
``(B) a covered article.
``(3) Covered primary good.--The term `covered primary
good' means any good which--
``(A) is imported into the United States; and
``(B) is produced by an eligible industrial sector
listed pursuant to section 723.
``SEC. 752. INTERNATIONAL RESERVE ALLOWANCE PROGRAM.
``(a) Establishment.--
``(1) In general.--The Administrator, with the concurrence
of the Commissioner responsible for U.S. Customs and Border
Protection and in consultation with additional Federal agencies
as determined appropriate by the Administrator, shall issue
regulations--
``(A) establishing an international reserve
allowance program for the sale, exchange, purchase,
transfer, and banking of international reserve
allowances for covered imported goods;
``(B) ensuring that the price for purchasing an
international reserve allowance is equivalent to the
average of the previous four auction clearing prices
for emission allowances under section 720;
``(C) establishing a general methodology for
calculating the quantity of international reserve
allowances that an importer of a covered imported good
must submit;
``(D) requiring the submission of an appropriate
amount of international reserve allowances for covered
imported goods entering the customs territory of the
United States;
``(E) exempting from the requirements of
subparagraph (D) covered imported goods that are--
``(i) determined, by independent third-
party verification, to meet the relevant
output-based allocation benchmark under section
723(b);
``(ii) produced in any foreign country that
the United Nations has identified as among the
least developed of developing countries; or
``(iii) produced in any foreign country
that the Administrator has determined to be
responsible for less than 0.5 percent of total
global greenhouse gas emissions and less than 5
percent of United States imports of covered
imported goods with respect to the relevant
eligible industrial sector;
``(F) specifying the procedures that U.S. Customs
and Border Protection will apply for the declaration
and entry of covered imported goods into the customs
territory of the United States;
``(G) establishing procedures that prevent
circumvention of the international reserve allowance
program requirements for covered imported goods that
are manufactured or processed in more than one foreign
country; and
``(H) publishing, on an annual basis, relevant
information regarding the quantity of international
reserve allowances sold, the quantity of covered
imported goods entering the customs territory of the
United States, relevant greenhouse gas emissions
information of such goods, the country of origin of
such goods, and other information as determined
relevant by the Administrator.
``(2) Purpose of program.--The Administrator shall
establish the program under paragraph (1) consistent with
international agreements to which the United States is a party,
in a manner that minimizes the likelihood of carbon leakage as
a result of differences between--
``(A) the direct and indirect costs of complying
with part B of this title; and
``(B) the direct and indirect costs, if any, of
complying in other countries with greenhouse gas
regulatory programs, requirements, export tariffs, or
other measures adopted or imposed to reduce greenhouse
gas emissions.
``(b) Greenhouse Gas Emissions Data for Covered Imported Goods.--
``(1) In general.--Under the regulations established under
subsection (a), the Administrator shall require independent,
third-party verification of greenhouse gas emissions data,
including attributable greenhouse gas emissions, for all
relevant stages of production of each covered imported good
entering the customs territory of the United States.
``(2) Failure to produce verified greenhouse gas emissions
data.--If the Administrator determines that an importer of a
covered imported good has failed to provide accurate,
sufficient, and independent, third-party verified data, the
Administrator shall make a determination of the greenhouse gas
emissions associated with the production of such good based on
the best available data related to the greenhouse gas emissions
and production data from all facilities which produce similar
goods within the country of origin, the greenhouse gas
emissions intensity of the general economy of the country of
origin of such good, and other factors determined relevant by
the Administrator.
``(c) Disposition of Proceeds.--
``(1) Clean energy rebate program supplemental funding.--50
percent of the proceeds from the sale of international reserve
allowances under this section in each fiscal year shall be made
available to the Secretary of the Treasury to carry out the
Clean Energy Rebate Program established by section 102 of the
Climate Pollution Standard and Community Investment Act of
2025.
``(2) Administrative expenses.--The Administrator may use,
including the transfer of funds to the Commissioner responsible
for U.S. Customs and Border Protection, not more than 10
percent of the proceeds from the sale of international reserve
allowances under this section in each fiscal year to cover the
administrative expenses associated with administering this
section.
``(3) Remaining revenues.--The Administrator shall deposit
any remaining proceeds from the sale of international reserve
allowances under this section in a fiscal year in equal shares
to the funds established by sections 103, 104, 105, and 106 of
the Climate Pollution Standard and Community Investment Act of
2025.
``(d) Effective Date.--The international reserve allowance program
shall not apply to imports of covered imported goods entering the
customs territory of the United States before January 1, 2028.
``(e) Covered Entities.--International reserve allowances shall not
be used by covered entities to comply with part B of this title.''.
(b) Conforming Amendments.--
(1) Federal enforcement.--Section 113 of the Clean Air Act
(42 U.S.C. 7413) is amended--
(A) in subsection (a)(3), by striking ``or title
VI,'' and inserting ``title VI, or title VII'';
(B) in subsection (b)(2), by striking ``or title
VI'' and inserting ``title VI, or title VII'';
(C) in subsection (c)--
(i) in the first sentence of paragraph (1),
by striking ``or title VI (relating to
stratospheric ozone control),'' and inserting
``title VI, or title VII,''; and
(ii) in the first sentence of paragraph
(3), by striking ``or VI'' and inserting ``VI,
or VII'';
(D) in subsection (d)(1)(B), by striking ``or VI''
and inserting ``VI, or VII''; and
(E) in subsection (f), in the first sentence, by
striking ``or VI'' and inserting ``VI, or VII''.
(2) Inspections, monitoring, and entry.--Section 114(a) of
the Clean Air Act (42 U.S.C. 7414(a)) is amended by striking
``section 112, (ii)'' and inserting ``section 112, or any
regulation of greenhouse gas emissions under title VII, (ii)''.
(3) Enforcement.--Section 304(f) of the Clean Air Act (42
U.S.C. 7604(f)) is amended--
(A) in paragraph (2), by striking ``or'' at the
end;
(B) in paragraph (3), by striking ``; or'' at the
end and inserting a comma;
(C) in paragraph (4), by striking the period at the
end and inserting ``, or''; and
(D) by inserting the following new paragraph after
paragraph (4):
``(5) any requirement of title VII,''.
(4) Administrative proceedings and judicial review.--
Section 307 of the Clean Air Act (42 U.S.C. 7607) is amended--
(A) in subsection (a), by striking ``, or section
306'' and inserting ``section 306, or title VII'';
(B) in subsection (b)(1), by striking ``section
120,'' in the first sentence and inserting ``section
120, any final action under title VII,''; and
(C) in subsection (d)(1)--
(i) in subparagraph (T), by striking ``,
and'' at the end and inserting a comma;
(ii) by redesignating subparagraph (U) as
subparagraph (V); and
(iii) by inserting the following new
subparagraph after subparagraph (T):
``(U) the promulgation or revision of any regulation under
title VII, and''.
(5) Energy independence and security act of 2007.--Section
548(b) of the Energy Independence and Security Act of 2007 (42
U.S.C. 17158(b)) is amended--
(A) in paragraph (1), by striking the ``or'' at the
end;
(B) in paragraph (2), by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following:
``(3) section 722(e) of the Clean Air Act.''.
SEC. 102. CLEAN ENERGY REBATE PROGRAM.
(a) In General.--The Secretary, in consultation with the Secretary
of Agriculture and the Secretary of Health and Human Services, shall
carry out a program to be known as the Clean Energy Rebate Program to
provide rebates to eligible households using amounts made available to
the Secretary under sections 722(c) and 752 of the Clean Air Act.
(b) Streamlined Participation for Certain Beneficiaries.--The
Secretary shall--
(1) periodically estimate the number of eligible
households, and the number of participating eligible
households, for the Clean Energy Rebate Program; and
(2) develop procedures, in consultation with the
Commissioner of Social Security, the Railroad Retirement Board,
the Secretary of Veterans Affairs, and relevant State agencies,
to ensure that beneficiaries of the benefit programs
administered by such entities receive the rebate for which such
beneficiaries are eligible under the Clean Energy Rebate
Program.
(c) Rebate Amount.--The rebate amount for an eligible household
under this section shall be determined by the Secretary, accounting
for--
(1) the amount of funding made available under section
722(c) of the Clean Air Act; and
(2) the number of citizens and permanent legal residents of
the eligible household.
(d) Delivery Mechanism.--The Secretary shall establish rules for
providing rebates to eligible households under this section in an
administratively simple manner, and on a quarterly basis through--
(1) direct deposit into the eligible household's designated
bank account;
(2) a State's electronic benefit transfer system; or
(3) another Federal or State mechanism, if such a mechanism
is approved by the Secretary.
(e) Administration by States.--
(1) In general.--The Secretary may, in consultation with
the Secretary of Agriculture and the Secretary of Health and
Human Services, establish uniform national program standards to
enable States, upon the approval of the Secretary, to
administer the Clean Energy Rebate Program in the State. Such a
State shall establish procedures governing the administration
of the Clean Energy Rebate Program that the relevant State
agency determines best serve eligible households in the State,
including households with special needs, such as households
with elderly or disabled members, households in rural areas,
homeless individuals, and households residing on reservations
as defined in the Indian Child Welfare Act of 1978 and the
Indian Financing Act of 1974.
(2) Coadministration with other programs.--Such a State may
coadminister the Clean Energy Rebate Program with other State
programs, such as the supplemental nutrition assistance program
authorized by the Food and Nutrition Act of 2008 in accordance
with the provisions of this title.
(3) Additional requirements.--No State shall impose any
condition of eligibility for a rebate under this section other
than what is required by this section.
(4) Oversight.--Each State administering the Clean Energy
Rebate Program shall--
(A) assume responsibility for the certification of
eligible households and for the issuance of rebates and
the control and accountability thereof; and
(B) report information to the Secretary at such a
time and manner as determined appropriate by the
Secretary.
(f) Outreach.--The Secretary shall carry out a robust and
comprehensive outreach program to ensure that eligible households learn
of their eligibility for rebates and are advised of the opportunity to
receive such rebates.
(g) Tax Treatment.--Rebate amounts provided under this section may
not be includible in the gross income of the recipient for purposes of
the Internal Revenue Code of 1986.
(h) Regulations.--Not later than 24 months after the date of
enactment of this title, the Secretary shall issue such regulations, or
guidance, as the Secretary determines necessary or appropriate for the
effective and efficient administration of the Clean Energy Rebate
Program.
(i) Definitions.--In this section:
(1) Eligible household.--The term ``eligible household''
means a household--
(A) for which the gross income of the household
does not exceed 200 percent of the poverty line;
(B) for which the relevant State agency of the
State in which the household is located determines that
the household is participating in--
(i) the supplemental nutrition assistance
program authorized by the Food and Nutrition
Act of 2008 (7 U.S.C. 2011 et seq.);
(ii) the food distribution program on
Indian reservations authorized by section 4(b)
of such Act; or
(iii) the program for nutrition assistance
in Puerto Rico or American Samoa under section
19 of such Act;
(C) that consists of a single individual or a
married couple, and receives benefits under the
supplemental security income program under title XVI of
the Social Security Act (42 U.S.C. 1381 et seq.); and
(D) of which at least one member is a citizen or
permanent legal resident.
(2) Gross income of a household.--The term ``gross income
of a household'' means the gross income of a household that is
determined in accordance with standards and procedures
established under section 5 of the Food and Nutrition Act of
2008 (7 U.S.C. 2014).
(3) Household.--The term ``household'' has the meaning
given the term ``Household'' in section 3(m) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2012(m)).
(4) Poverty line.--The term ``poverty line'' has the
meaning given such term in section 673(2) of the Community
Services Block Grant Act (42 U.S.C. 9902).
(5) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury.
(6) State.--The term ``State'' means the 50 States, the
District of Columbia, the Commonwealth of Puerto Rico, American
Samoa, the United States Virgin Islands, Guam, and the
Commonwealth of the Northern Mariana Islands.
SEC. 103. WORKER AND COMMUNITY ASSISTANCE FUND.
(a) Establishment.--There is established in the Treasury of the
United States a fund, to be known as the Worker and Community
Assistance Fund, consisting of--
(1) such amounts as are deposited in the fund under
sections 722(g) and 752 of the Clean Air Act; and
(2) such additional amounts as may be appropriated to
supplement the fund.
(b) Expenditures From Fund.--
(1) Availability.--Amounts deposited in the fund pursuant
to subsection (a) shall be available to the Secretary of Labor
and the Director of the Office of Energy and Economic
Transition without subsequent appropriation and shall remain
available without fiscal year limitation until expended.
(2) Administrative expenses.--The Secretary of Labor and
the Director of the Office of Energy and Economic Transition
may use not more than 5 percent of the amount available in the
Worker and Community Assistance Fund on October 1 of each
fiscal year to cover the administrative expenses of carrying
out title II of this Act for that fiscal year.
SEC. 104. CLEANER AIR COMMUNITY FUND.
(a) Establishment.--There is established in the Treasury of the
United States a fund, to be known as the Cleaner Air Community Fund,
consisting of--
(1) such amounts as are deposited in the fund under
sections 722(h) and 752 of the Clean Air Act; and
(2) such additional sums as may be appropriated to
supplement the fund.
(b) Expenditures From Fund.--
(1) In general.--Amounts deposited in the fund pursuant to
subsection (a) shall be available to the Administrator of the
Environmental Protection Agency without subsequent
appropriation and shall remain available without fiscal year
limitation until expended.
(2) Administrative expenses.--The Administrator of the
Environmental Protection Agency may use not more than 5 percent
of the amount available in the Cleaner Air Community Fund on
October 1 of each fiscal year to cover the administrative
expenses of carrying out part C of title VII of the Clean Air
Act for that fiscal year.
SEC. 105. NEGATIVE EMISSIONS ACTIVITIES FUND.
(a) Establishment.--There is established in the Treasury of the
United States a fund, to be known as the Negative Emissions Activities
Fund, consisting of--
(1) such amounts as are deposited in the fund under
sections 722(i) and 752 of the Clean Air Act; and
(2) such additional amounts as may be appropriated to
supplement the fund.
(b) Expenditures From Fund.--
(1) In general.--Amounts deposited in the fund pursuant to
subsection (a) shall be available to the Administrator of the
Environmental Protection Agency without subsequent
appropriation and shall remain available without fiscal year
limitation until expended.
(2) Administrative expenses.--The Administrator of the
Environmental Protection Agency may use not more than 5 percent
of the amount available in the Negative Emissions Activities
Fund on October 1 of each fiscal year to cover the
administrative expenses of carrying out part D of title VII of
the Clean Air Act for that fiscal year.
SEC. 106. ENERGY INNOVATION FUND.
(a) Establishment.--There is established in the Treasury of the
United States a fund, to be known as the Energy Innovation Fund,
consisting of--
(1) such amounts as are deposited in the fund under section
722(j) and 752 of the Clean Air Act; and
(2) such additional amounts as may be appropriated to
supplement the fund.
(b) Expenditures From Fund.--
(1) In general.--Beginning in fiscal year 2027, amounts
deposited in the fund pursuant to subsection (a) shall be
available to the Secretary of Energy without subsequent
appropriation and shall remain available without fiscal year
limitation until expended to provide assistance pursuant to
subsection (c).
(2) Administrative expenses.--The Secretary of Energy may
use not more than 5 percent of the amount available in the
Energy Innovation Fund on October 1 of each fiscal year to
cover the administrative expenses of carrying out this section
for that fiscal year.
(c) Use of Funds.--The Secretary of Energy shall provide assistance
under this section, distributed on a competitive basis, to local,
State, and Tribal governments, institutions of higher education,
companies, research foundations, trade and industry research
collaborations, or consortia of such entities, or other appropriate
research and development entities to support research, development, and
demonstration of technology that the Secretary determines supports
achievement of the goal established by section 702 of the Clean Air
Act, including through targeted acceleration of--
(1) novel early-stage clean energy research;
(2) development of techniques, processes, and technologies,
and related testing and evaluation;
(3) development of manufacturing processes for clean energy
technologies; and
(4) demonstration for commercial applications of clean
energy technologies.
(d) Supplement Not Supplant.--Assistance provided under this
section shall be used to supplement, and not to supplant, any other
Federal resources available to carry out the activities described in
this section.
(e) Report to Congress.--Not later than 3 years after the date of
enactment of this Act, and each year thereafter, the Secretary of
Energy shall submit to Congress and make available to the public a
report that describes the activities funded by the Energy Innovation
Fund.
SEC. 107. EMISSION ALLOWANCE MARKET OVERSIGHT.
(a) Definition of Emission Allowance.--In this section, the term
``emission allowance'' means any emission allowance established or
issued under title VII of the Clean Air Act, or any derivative of such
allowance.
(b) Interagency Working Group.--
(1) Establishment.--Not later than 1 year after the date of
enactment of this section, the President shall establish an
interagency working group to support the oversight of emission
allowance transactions. Such working group shall include
representatives from--
(A) the Environmental Protection Agency;
(B) the Federal Energy Regulatory Commission;
(C) the Commodity Futures Trading Commission; and
(D) other relevant Federal agencies as determined
by the President.
(2) Recommendations.--The working group shall make periodic
recommendations to Congress and relevant Federal agencies to--
(A) provide for effective and comprehensive market
oversight of emission allowance transactions;
(B) prohibit fraud, market manipulation, and excess
speculation related to emission allowance transactions;
(C) limit unreasonable fluctuation in the prices of
emission allowances;
(D) ensure market transparency to provide for
efficient price discovery, prevention of fraud, market
manipulation, and excess speculation; and
(E) facilitate compliance with title VII of the
Clean Air Act.
(3) Report.--Not later than 3 years after the date of
enactment of this section, and biennially thereafter, the
interagency working group shall submit to the President and
Congress a written report that includes the recommendations
made under paragraph (2) for--
(A) regulations and other actions to be taken by
Federal agencies to enhance the oversight of emission
allowance transactions; and
(B) statutory changes needed to ensure the proper
operation and oversight of transparent, fair, stable,
and efficient emission allowance transactions.
SEC. 108. DIRECT HIRE AUTHORITY FOR IMPLEMENTATION OF THIS TITLE.
Notwithstanding section 3304 and sections 3309 through 3318 of
title 5, United States Code, the Administrator of the Environmental
Protection Agency, upon a determination by the Administrator that there
is a severe shortage of candidates or a critical hiring need for
particular positions to carry out this title (including the amendments
made by this title), may recruit and directly appoint highly qualified
individuals into the competitive service.
TITLE II--WORKER AND COMMUNITY ASSISTANCE
SEC. 201. DEFINITIONS.
In this title:
(1) Adversely affected community.--The term ``adversely
affected community'' means a unit of local government or an
Indian Tribe (or a political subdivision thereof) that has
been, or is at risk to be, significantly disrupted by the
United States transition to net-zero greenhouse gas emissions
through the loss of a significant portion of locally generated
tax revenue or employment due to the closure, or risk of
closure, of an impacted employer within its jurisdiction.
(2) Adversely affected worker.--The term ``adversely
affected worker'' means an individual who has been, or is at
risk to be, totally separated or partially separated from
employment by an impacted employer.
(3) Director.--The term ``Director'' means the Director of
the Office of Energy and Economic Transition.
(4) Impacted employer.--The term ``impacted employer''
means a private entity that is primarily engaged in business
related to--
(A) the extraction of fossil fuels;
(B) the refinement of fossil fuels;
(C) the generation of electricity from fossil
fuels;
(D) the production of energy-intensive industrial
products;
(E) the manufacture of light-, medium-, and heavy-
duty vehicles that utilize an internal combustion
engine and component parts for such vehicles;
(F) the construction, operation, and maintenance of
infrastructure to deliver fossil fuels for domestic
use; or
(G) other industries significantly disrupted by the
United States transition to net-zero greenhouse gas
emissions, as determined by the Director, in
consultation with the Administrator of the
Environmental Protection Agency and the Secretary of
Labor.
(5) Partial separation.--The terms ``partial separation''
and ``partially separated'' mean, with respect to an individual
who has not been totally separated from employment, that--
(A) the number of hours of work for such individual
has been reduced by an impacted employer to 80 percent
or less of the average number of hours per week such
individual worked per week prior to any separation from
employment; and
(B) the wages for such individual have been reduced
by an impacted employer to 80 percent or less of the
average wages per week while employed by the impacted
employer prior to any separation.
(6) Total separation.--The terms ``total separation'' and
``totally separated'' mean the layoff or severance of an
individual from employment by an impacted employer.
SEC. 202. ENERGY AND ECONOMIC TRANSITION IMPACT STUDIES.
(a) In General.--The Secretary of Energy shall seek to enter into
an agreement with the National Academy of Sciences under which the
Academy agrees to conduct studies on matters concerning the potential
impacts of achieving net-zero greenhouse gas emissions on workers and
communities dependent on employment related to fossil fuels as follows:
(1) Not later than 1 year after the date of entry into such
agreement, the Academy shall complete a study focused on
communities that have experienced an energy-related transition
within the previous 10 years, including communities that were
dependent on coal, and submit to Congress and the Secretary of
Energy a report on the results of such study.
(2) Not later than 3 years after the date of entry into
such agreement, the Academy shall complete a study focused on
communities and industries not covered in the study under
paragraph (1) that are likely to experience an energy-related
transition should the United States achieve net-zero greenhouse
gas emissions by 2050, and submit to Congress and the Secretary
of Energy a report on the results of such study.
(b) Timing of Agreement.--The Secretary of Energy shall seek to
enter into the agreement described in subsection (a) not later than 180
days after the date of the enactment of this Act.
(c) Requirements.--The study and report under paragraph (1) of
subsection (a), with respect to communities described in such
paragraph, and the study and report under paragraph (2) of subsection
(a), with respect to communities described in such paragraph, shall--
(1) assess current and foreseeable trends in worker and
community disruptions associated with the United States
transition to achieving net-zero greenhouse gas emissions, and
the effects of such trends on the social, economic, and other
requirements of the United States;
(2) identify types of occupations related to fossil fuels
that may be impacted by the United States transition to
achieving net-zero greenhouse gas emissions, including--
(A) occupations involved with--
(i) the extraction of fossil fuels;
(ii) the refinement of fossil fuels;
(iii) the generation of electricity from
fossil fuels;
(iv) the production of energy-intensive
industrial products;
(v) the manufacture of light-, medium-, and
heavy-duty vehicles that utilize an internal
combustion engine and component parts for such
vehicles; and
(vi) the construction, operation, and
maintenance of infrastructure to deliver fossil
fuels for domestic use; and
(B) for each type of occupation identified under
subparagraph (A), estimates of--
(i) the number of employees serving in each
type of occupation;
(ii) the locations of employees for each
type of occupation;
(iii) the average wages and benefits of
employees for each type of occupation; and
(iv) the average age of employees for each
type of occupation, including an estimate of
the number of employees 55 years of age or
older;
(3) assess impacts and potential impacts associated with
the United States transition to achieving net-zero greenhouse
gas emissions on workers in the types of occupations identified
under paragraph (2);
(4) identify skills, including professional certifications,
typically associated with each type of occupation identified
under paragraph (2) and potential occupations utilizing the
same or similar skills in industries not impacted by the United
States transition to achieving net-zero greenhouse gas
emissions, including an estimate of average wages and benefits
for each such potential occupation;
(5) identify the ages and locations of, and existing debt
burdens, including debt burdens resulting from Department of
Agriculture Rural Utilities Service loans, related to existing
fossil fuel-powered electricity generating units;
(6) identify municipal and county governments that derive--
(A) more than 25 percent of locally generated tax
revenue or employment within the jurisdiction of the
government from industries employing workers in types
of occupations identified under paragraph (2); and
(B) more than 50 percent of locally generated tax
revenue or employment within that jurisdiction from
such industries;
(7) assess the status and condition of communities already
affected by the transition to achieving net-zero greenhouse gas
emissions, that have lost significant locally generated tax
revenue or employment within the past 10 years;
(8) assess economic development and alternative employment
opportunities in communities identified in paragraphs (6) and
(7), including an assessment of existing educational, workforce
development, and infrastructure assets, including
transportation, energy, and digital infrastructure, near
identified communities;
(9) identify commonly occurring municipal and county
government services and programs funded by locally generated
tax revenues in communities identified in paragraphs (6) and
(7), including--
(A) education;
(B) public safety, including police and fire
departments;
(C) health care;
(D) infrastructure; and
(E) workforce development; and
(10) identify potential strategies, consistent with
achieving net-zero greenhouse gas emissions, to avoid future
disruptions among businesses and workers, including strategies
to reskill workers to fill jobs in emerging and growing
industries.
(d) Recommendations.--The studies and reports under subsection (a)
shall identify actions that could be taken regarding worker and
community transition to net-zero greenhouse gas emissions, including--
(1) compensation packages for employees in types of
occupations identified under subsection (c)(2), including--
(A) transition adjustment assistance, potentially
including support for wages, pension, health care, and
other benefits; and
(B) enabling early retirement for such employees
over the age of 55;
(2) training and further education for employees in
occupations identified under subsection (c)(2), potentially
including job placement and relocation assistance;
(3) economic development and diversification of communities
identified under paragraphs (6) and (7) of subsection (c),
including employment and development opportunities associated
with environmental remediation;
(4) financial assistance packages for communities
identified in paragraphs (6) and (7) of subsection (c) to
provide temporary replacement of lost locally generated tax
revenue; and
(5) recommendations for remedying deficiencies of existing
programs and activities identified in subsection (c), which may
include recommendations for Federal legislation and Executive
action.
(e) Authorization of Appropriations.--There is authorized to be
appropriated such sums as are necessary to carry out this section.
SEC. 203. OFFICE OF ENERGY AND ECONOMIC TRANSITION.
(a) Establishment.--There is established in the Executive Office of
the President an Office of Energy and Economic Transition. The Office
shall be led by a Director who shall be appointed by the President, to
serve at the pleasure of the President, by and with the advice and
consent of the Senate.
(b) Director Qualifications.--The Director shall be a person who,
as a result of training, experience, and attainments, is exceptionally
well qualified to--
(1) appraise programs and activities of the Federal
Government in light of the challenges posed to adversely
affected workers and adversely affected communities;
(2) be conscious of and responsive to the scientific,
economic, social, cultural, and pollution reduction needs and
interests of the United States; and
(3) formulate and recommend national policies to assist
workers and communities disrupted in the United States
transition to achieving net-zero greenhouse gas emissions.
(c) Compensation for Director.--The annual rate of pay for the
Director shall be fixed by the President at a rate that may not exceed
the annual rate of pay for level II of the Executive Schedule.
(d) Duties of Director.--The Director shall assist and advise the
President on policies and programs of the Federal Government affecting
the United States transition to achieving net-zero greenhouse gas
emissions by--
(1) administering the programs and activities under this
title;
(2) assisting and advising the President in the preparation
of the Worker and Community Transition Report required under
subsection (g);
(3) reviewing and appraising the various programs and
activities of the Federal Government related to adversely
affected workers and economic development and diversification
of adversely affected communities, and making recommendations
to the President with respect to such programs and activities;
(4) coordinating relevant programs and activities among the
relevant Federal departments and agencies through the
Interagency Energy and Economic Transition Task Force convened
pursuant to section 204;
(5) coordinating across Federal departments, agencies, and
other initiatives to align energy-related transition strategies
with other national economic development strategies, including
national manufacturing, infrastructure, and environmental
remediation strategies;
(6) in accordance with section 205, being responsive to and
coordinating with the Stakeholder Advisory Committee
established under such section;
(7) creating and maintaining a website to serve as an
information clearinghouse containing information on relevant
programs and activities from relevant departments and agencies
across the Federal Government to increase awareness of Federal
programs, grants, loans, loan guarantees, and other assistance
and resources the Director determines may assist economic
development and diversification activities in adversely
affected communities and support adversely affected workers;
(8) providing assistance to adversely affected communities,
including technical and financial assistance, and support for
capacity building and planning capabilities by adversely
affected communities and community-based leaders of such
communities, including assistance provided pursuant to section
206 or through Community-Based Transition Hubs pursuant to
section 207;
(9) collecting, collating, analyzing, and interpreting data
and information on adversely affected workers and economic
development and diversification of adversely affected
communities; and
(10) implementing grant programs or other forms of
financial and technical assistance to support adversely
affected workers and the economic development and
diversification of adversely affected communities as required
by this title or after determining no such similar program or
assistance is being provided by a Federal agency.
(e) Employment of Personnel, Experts, and Consultants.--The Office
may employ such officers and employees as may be necessary to carry out
its duties under this title. In addition, the Office may employ and fix
the compensation of such experts and consultants as may be necessary
for carrying out such duties, in accordance with section 3109 of title
5, United States Code.
(f) Reimbursements.--The Office may accept reimbursements from any
private nonprofit organization, any department, agency, or
instrumentality of the Federal Government, or any State or local
government for the reasonable travel expenses incurred by the Director
or an employee of the Office in connection with attendance at any
conference, seminar, or similar meeting conducted for the benefit of
the Office.
(g) Report to Congress.--Beginning in 2027, the President shall
transmit to Congress a report, to be known as the Worker and Community
Transition Report, not less than once every 2 years, which shall set
forth--
(1) the status and condition of workers and communities
disrupted in the United States transition to achieving net-zero
greenhouse gas emissions, with an emphasis on economic
development and diversification activities in adversely
affected communities;
(2) current and foreseeable trends in worker and community
disruptions associated with the United States transition to
achieving net-zero greenhouse gas emissions, and the effects of
such trends on the social, economic, and other requirements of
the United States;
(3) a review of the programs and activities (including
regulatory activities) of the Federal Government, State,
Tribal, and local governments, and nongovernmental entities or
individuals that serve adversely affected communities;
(4) recommendations for remedying deficiencies of existing
programs and activities described in paragraph (3), which may
include recommendations for new programs and activities and
legislation to authorize such programs; and
(5) the expenditures of the Office in support of programs
and activities authorized under this title.
(h) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section such sums as are necessary.
SEC. 204. INTERAGENCY ENERGY AND ECONOMIC TRANSITION TASK FORCE.
(a) In General.--Not later than 1 year after the date of enactment
of this Act, the Director shall convene regularly a task force, to be
known as the Interagency Energy and Economic Transition Task Force, to
enhance the coordination of relevant programs and activities intended
to support adversely affected workers and adversely affected
communities, with an emphasis on economic development and
diversification activities in adversely affected communities.
(b) Composition.--The Task Force shall be comprised of the
following (or a designee):
(1) The Secretary of Energy.
(2) The Secretary of Labor.
(3) The Secretary of Commerce.
(4) The Secretary of Agriculture.
(5) The Secretary of Health and Human Services.
(6) The Secretary of Housing and Urban Development.
(7) The Secretary of the Interior.
(8) The Secretary of Transportation.
(9) The Secretary of the Treasury.
(10) The Secretary of Education.
(11) The Administrator of the Environmental Protection
Agency.
(12) The Administrator of the Small Business
Administration.
(13) The Director of the Office of Management and Budget.
(14) The Chair of the Council on Environmental Quality.
(15) The Chairman of the Appalachian Regional Commission.
(16) Such other Federal officials as determined appropriate
by the Director.
(c) Functions.--The Task Force shall--
(1) report to the President through the Director;
(2) seek to enhance coordination and implementation of
programs and activities related to the duties of the Office of
Energy and Economic Transition in order to ensure that the
administration of programs, activities, and policies across
Federal departments and agencies is carried out in a consistent
and complementary manner;
(3) utilize, to the fullest extent possible, the services,
facilities, and information (including statistical information)
of public and private agencies and organizations, and
individuals, in order that duplication of effort and expense
may be avoided; and
(4) identify, based in part on recommendations from the
Stakeholder Advisory Committee established under section 205
and the public, opportunities to improve support for adversely
affected workers and adversely affected communities for
relevant Federal departments and agencies to take into
consideration and address.
(d) Public Participation.--The Task Force shall--
(1) hold public meetings or otherwise solicit public
participation for the purposes of developing and coordinating
policies and programs of the Federal Government related to
adversely affected workers and adversely affected communities
in the United States transition to achieving net-zero
greenhouse gas emissions; and
(2) publish a summary of any comments and recommendations
provided pursuant to paragraph (1).
SEC. 205. STAKEHOLDER ADVISORY COMMITTEE.
(a) In General.--Not later than 1 year after the date of enactment
of this Act, the Director shall establish a committee, to be known as
the Stakeholder Advisory Committee, to consult with representatives of
adversely affected communities, adversely affected workers, industry,
labor unions, economic development experts, State, local, and Tribal
governments, and other organizations and individuals, as determined
appropriate by the Director, to address the needs of workers and
communities affected by the United States energy transition to net-zero
greenhouse gas emissions.
(b) Membership.--The Stakeholder Advisory Committee shall be
comprised of members who have knowledge of, or experience relating to,
workers and communities adversely affected by the United States energy
transition to net-zero greenhouse gas emissions, with an emphasis on
economic development and diversification activities in adversely
affected communities, and shall include--
(1) representatives from labor unions, including at least
one representative from--
(A) the mining sector;
(B) the electricity generation sector;
(C) the manufacturing sector; and
(D) the transportation sector;
(2) community leaders from adversely affected communities,
including community leaders from Tribal and Indigenous
communities;
(3) representatives from State, Tribal, and local
governments;
(4) experts in economic development;
(5) experts in workforce development;
(6) representatives from nongovernmental organizations,
including environmental organizations; and
(7) representatives from the private sector.
(c) Responsibilities.--The Stakeholder Advisory Committee shall
provide independent advice and recommendations to the Director with
respect to issues relating to the duties of the Office of Energy and
Economic Transition, including--
(1) improving participation, cooperation, and communication
between the Office and adversely affected communities;
(2) recommending lessons learned and best practices from
communities, regions, and countries that have gone through, are
going through, or are planning for an energy-related economic
transition;
(3) supporting community-based public meetings, as
described in subsection (f);
(4) soliciting and receiving feedback from Community-Based
Transition Hubs receiving grants pursuant to section 207; and
(5) producing a report within 2 years of establishment, and
every 2 years thereafter, and make recommendations, including
actions that could be taken under executive authority and new
legislation.
(d) Recommendations From the Stakeholder Advisory Committee.--The
Director shall provide a written response to each recommendation
submitted in a report under subsection (c) to the Director by the
Stakeholder Advisory Committee by not later than 180 days after the
date of submission of such report.
(e) Committee Meetings.--
(1) In general.--The Stakeholder Advisory Committee shall
meet not less frequently than 3 times each calendar year.
(2) Open to public.--Each meeting of the Stakeholder
Advisory Committee shall be held open to the public.
(3) Duties of the director.--The Director (or a designee)
shall--
(A) be present at each meeting of the Stakeholder
Advisory Committee;
(B) ensure that each meeting is conducted in
accordance with an agenda approved in advance by the
Director;
(C) provide an opportunity for interested persons--
(i) to file comments before or after each
meeting of the Stakeholder Advisory Committee;
or
(ii) to make statements at such a meeting,
to the extent that time permits; and
(D) ensure that a high-level representative from
each department and agency from the Interagency Energy
and Economic Transition Task Force convened pursuant to
section 204 is invited to, and encouraged to attend,
each meeting of the Stakeholder Advisory Committee.
(f) Public Meetings.--
(1) In general.--Not later than 2 years after the date of
enactment of this Act, and each year thereafter, the Director,
in coordination with the Stakeholder Advisory Committee, shall
hold public meetings to gather input with respect to the duties
of the Office of Energy and Economic Transition and
implementation of this title.
(2) Outreach to adversely affected communities.--The
Director, in advance of the meetings described in subsection
(a), shall hold meetings in multiple adversely affected
communities to provide meaningful community involvement
opportunities.
(3) Coordination with community-based transition hubs.--The
Director, in advance of the meetings described in subsection
(a), shall coordinate and solicit comments from entities
receiving grants under section 207.
(g) Travel Expenses.--A member of the Stakeholder Advisory
Committee may be allowed travel expenses, including per diem in lieu of
subsistence, at such rate as the Director determines to be appropriate
while away from the home or regular place of business of the member in
the performance of the duties of the Stakeholder Advisory Committee,
including participation in a public meeting pursuant to subsection (f).
(h) Duration.--The Stakeholder Advisory Committee shall remain in
existence unless otherwise provided by law.
SEC. 206. ASSISTANCE FOR ADVERSELY AFFECTED COMMUNITIES.
(a) In General.--The Director shall establish a program to provide
assistance to eligible local government entities, including making
payments to temporarily replace eligible local revenues of such
entities, using amounts made available to the Director in the Worker
and Community Assistance Fund.
(b) Requirements.--In implementing the program in subsection (a),
the Director shall--
(1) identify problems of counties, regions, metropolitan
areas, Tribal Governments, and communities that result from the
cessation of operations by impacted employers;
(2) use and maintain a uniform socioeconomic impact
analysis;
(3) apply consistent policies, practices, and procedures in
the administration of Federal programs that are used to assist
counties, Tribal Governments, regions, metropolitan areas,
communities, and businesses;
(4) encourage effective Federal, State, Tribal, county,
regional, metropolitan, and community cooperation and
involvement of public interest groups, labor organizations, and
private sector organizations in community adjustment
activities;
(5) serve as a clearinghouse to exchange information among
Federal, State, Tribal, county, regional, metropolitan, and
community officials involved in community adjustment
activities. Such information may include reports, studies, best
practices, technical information, and sources of public and
private financing; and
(6) support planning activities of counties, Tribal
Governments, regions, metropolitan areas, and communities to
promote diversification of local economies.
(c) Community Adjustments to Eligible Local Government Entities.--
The Director shall make annual payments under this section to eligible
local government entities to replace eligible local revenues due to the
cessation of operations by impacted employers located within the
jurisdiction of such local government entities.
(d) Order of Payment.--The date of submission of an eligible local
government entity's application for assistance shall establish the
order in which assistance is paid to program applicants, except that in
no event shall assistance be paid to a local government entity until
such time that an impacted employer has been closed. Any local
government entity seeking assistance under this section shall submit an
affidavit to the Director that an impacted employer has ceased
operating and an estimation of eligible local revenues. After receipt
of such an affidavit under this subsection, the Director shall confirm
such information.
(e) Conditions on Payments and Assistance.--An eligible local
government entity shall--
(1) be eligible for not more than one payment each fiscal
year under this section; and
(2) not receive payments under this section for more than 8
fiscal years.
(f) Determination of Payment Amount.--The amount of a payment under
this section shall be determined by the Director based on the eligible
local revenues from one or more impacted employers to an eligible local
government entity equal to--
(1) 90 percent of eligible local revenues in the first and
second years;
(2) 75 percent of eligible local revenues in the third and
fourth years;
(3) 50 percent of eligible local revenues in the fifth and
sixth years; and
(4) 25 percent of eligible local revenues in the seventh
and eighth years.
(g) Adjustment of Payment Amounts.--Notwithstanding subsection (f),
if the Director determines that the total amount of payments to
eligible local government entities in any year would exceed the amount
of funding made available to carry out this section for that year, the
Director may reduce each eligible local government entity's payment on
a pro rata basis.
(h) Report to the Director.--An eligible local government entity
receiving payment under this section shall be required to submit an
annual report to the Director explaining the use of payments, including
a description of funding used for--
(1) infrastructure;
(2) telecommunications;
(3) education;
(4) health care;
(5) public safety, including police, fire, emergency
response, or other community support services;
(6) drinking water and wastewater services;
(7) economic development and diversification;
(8) employment training, counseling, and placement services
for dislocated workers; and
(9) counseling and other social services for dislocated
workers.
(i) Community Adjustments, Economic Development, and Economic
Diversification Planning.--The Director may make grants and supplement
other Federal funds in order to assist a county, municipality, school
district, special district, or Tribal Government in planning for
community adjustments, economic development, and economic
diversification even if such entity is not currently eligible for
assistance under this section if the Director determines that there
exists a reasonable likelihood that such entity may become eligible in
the future.
(j) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary for carrying out this section.
(k) Definitions.--In this section:
(1) Eligible local government entity.--The term ``eligible
local government entity'' means a county, municipality, school
district, special district, or Tribal Government that has one
or more impacted employers located within the jurisdiction of
such entity that have ceased operations within the 2 years
prior to submitting an application to the Director, resulting
in at least a 25 percent reduction in total revenues from the
real property tax collections, royalties, lease payments,
transaction privilege taxes and sales taxes, or payments in
lieu of taxes owed to such entity.
(2) Eligible local revenues.--The term ``eligible local
revenues'' means the amount of real property taxes, royalty or
lease payments, transaction privilege taxes and sales taxes,
and payments in lieu of taxes owed by one or more impacted
employers to a county, municipality, school district, special
district, or Tribal Government, based on the average annual
amount owed by such an impacted employer for the 3 years prior
to the cessation of operations by such impacted employer.
SEC. 207. COMMUNITY-BASED TRANSITION HUB PROGRAM.
(a) In General.--The Director shall establish a program to award
grants to entities described in subsection (b), to be known as
Community-Based Transition Hubs, to carry out the activities described
in subsection (d), using amounts made available to the Director in the
Worker and Community Assistance Fund.
(b) Eligibility.--To be eligible to receive a grant under
subsection (a), an entity shall demonstrate to the Director that the
entity--
(1) has existing relationships, or could readily establish
relationships, with local employers and employees, county,
municipal, and Tribal governments, local and regional economic
development and planning organizations, workforce development,
educational, and job training resources, economic development
organizations, community organizations that provide social
services, and other organizations determined appropriate by the
Director;
(2) is capable of carrying out the duties described in
subsection (d);
(3) can meet the standards described in subsection (e); and
(4) can provide information consistent with the standards
developed under subsection (f).
(c) Priorities.--In awarding grants under this section, the
Director shall prioritize grants to entities located in communities
that--
(1) receive assistance under section 206; or
(2) the Director determines there is a reasonable
likelihood may receive assistance under section 206 within 5
years.
(d) Duties.--An entity that receives a grant under this section
shall--
(1) coordinate with the Office of Energy and Economic
Transition and relevant Federal departments and agencies
regarding the latest information, financial and technical
assistance opportunities, and best practices to support workers
and communities adversely affected by the United States energy
transition to net-zero greenhouse gas emissions;
(2) provide capacity-building support and technical
assistance, including grant writing assistance, to local
leaders and organizations, including elected officials,
community leaders, business owners, and labor leaders, to
facilitate community-driven planning processes and on-going
program development and implementation related to assistance to
displaced workers and economic development and diversification;
(3) advise communities that apply for assistance under this
title or under other Federal and State programs, including
providing guidance on the procedures and deadlines for applying
or petitioning for such assistance;
(4) conduct public education activities, including outreach
to adversely affected workers with respect to services and
assistance available through local, State, and Federal
programs;
(5) provide information related to, and when appropriate,
facilitate enrollment in--
(A) training, employment counseling, employment
opportunities, and placement services for adversely
affected workers, available in local and regional
areas, including information on how to apply for such
training and services;
(B) training programs and other services provided
by a State pursuant to title I of the Workforce
Investment Act of 1998 (29 U.S.C. 2801 et seq.) and
available in local and regional areas, including
information on how to apply for such training;
(C) educational opportunities and information
related financial aid, including referring workers to
educational opportunity centers described in section
402F of the Higher Education Act of 1965 (20 U.S.C.
1070a-16), where applicable;
(D) short-term prevocational services, including
development of learning skills, communications skills,
interviewing skills, personal maintenance skills, and
professional conduct to prepare individuals for
employment or training; and
(E) support services in local and regional areas,
including services related to childcare, personal
counseling (including substance abuse treatment,
suicide prevention, and mental health care), family
counseling, bankruptcy and financial counseling,
transportation, dependent care, housing assistance, and
need-related payments;
(6) provide individual employment counseling for adversely
affected workers, including development of an individual
employment plan to identify employment goals and objectives,
and appropriate training to achieve those goals and objectives,
or information to obtain such counseling in local and regional
areas;
(7) provide employment statistics information, including
the provision of accurate information relating to local,
regional, and national labor market areas, including--
(A) job vacancy listings in such labor market
areas;
(B) information on jobs skills necessary to obtain
jobs identified in job vacancy listings described in
subparagraph (A);
(C) information relating to local occupations that
are in demand and earnings potential of such
occupations; and
(D) skills requirements for local occupations
described in subparagraph (C); and
(8) provide information in a manner that is culturally and
linguistically appropriate to the needs of the population being
served.
(e) Standards.--The Director shall establish standards for grant
recipients under this section, including provisions to ensure that any
entity that receives a grant is qualified to engage in the activities
described in this section.
(f) Fair and Impartial Information and Services.--The Director, in
consultation with States, Tribal Governments, and relevant Federal
agencies, shall develop standards to ensure that information made
available by grant recipients under this section is accurate and shall
provide such entities with relevant information and technical
assistance to enable grant recipients under this section to better
perform the duties in subsection (d).
(g) Limitations on Grants.--
(1) Period.--In carrying out this section, the Director
shall ensure that the total period of a grant does not exceed 6
years.
(2) Amount.--In carrying out this section, the Director
shall ensure that the total amount awarded to an entity during
the total period of the grant does not exceed $12,000,000.
(h) Authorization of Appropriations.--There is authorized to be
appropriated such sums as are necessary for carrying out this section.
SEC. 208. ASSISTANCE FOR ADVERSELY AFFECTED WORKERS.
(a) In General.--Using amounts made available to the Secretary of
Labor in the Worker and Community Assistance Fund, the Secretary of
Labor shall provide assistance to each eligible adversely affected
worker in accordance with this section.
(b) Petitions.--
(1) Filing.--
(A) In general.--To be eligible to receive
assistance under this section, a petition shall be
filed with the Secretary and the Governor of the
applicable State, simultaneously, by (or on behalf of)
an adversely affected worker or a group of adversely
affected workers that meets the requirements of
subsection (c).
(B) Authorized entities.--A petition under
subparagraph (A) may be filed on behalf of an
individual adversely affected worker or a group of
adversely affected workers by one of the following:
(i) The certified or recognized union or
other duly authorized representative of such
worker or workers.
(ii) An employer of such worker or workers.
(iii) A one-stop operator or one-stop
partners (as defined in section 3 of the
Workforce Innovation and Opportunity Act)
including State employment security agencies.
(iv) A State, or an entity designated by a
State, carrying out rapid response activities
pursuant to title I of the Workforce Innovation
and Opportunity Act (29 U.S.C. 3111 et seq.).
(C) Applicable governor.--For purposes of
subparagraph (A), the term ``applicable State'', when
used with respect to an adversely affected worker or a
group of such workers, means the State in which the
employment site of such worker or workers is located.
(2) Action by the secretary of labor.--Upon receipt of a
petition filed under paragraph (1), the Secretary of Labor
shall promptly publish notice in the Federal Register and on
the website of the Department of Labor that the Secretary has
received, and is reviewing, the petition.
(3) Action by governors.--Upon receipt of a petition filed
under paragraph (1), the Governor shall--
(A) ensure that rapid response activities and
appropriate career services (as described in section
134 of the Workforce Innovation and Opportunity Act)
authorized under other Federal laws are made available
to each adversely affected worker covered by the
petition to the extent authorized under such laws; and
(B) assist the Secretary of Labor in the review of
the petition by verifying the information provided
under the petition and providing such other assistance
as the Secretary of Labor may request.
(c) Eligibility.--An adversely affected worker who works or has
worked at an employment site of an impacted employer or a group of
adversely affected workers from the same employment site of an impacted
employer shall be certified by the Secretary of Labor as eligible to
receive assistance under this section if the Secretary determines that
the petition filed under subsection (b) by or on behalf of such
individual or group demonstrates that--
(1) such individual worker or each individual worker in
such group is an adversely affected worker who has been (or who
has been at risk to be) totally separated or partially
separated from employment with such impacted employer for not
longer than the 1-year period ending on the date on which such
petition is filed;
(2) a significant number or percentage of the workers at
such employment site are adversely affected workers; and
(3) the sales, production, or delivery of goods or services
at such employment site has decreased as a result of any
requirement of title VII of the Clean Air Act, as added by this
Act, which may be demonstrated by evidence--
(A) in the case of a facility of such employer that
mines, produces, processes, or utilizes fossil fuels to
generate electricity, that the shift from reliance upon
fossil fuels to other sources of energy has resulted in
the closing of such facility or in the partial
separation or total separation of a significant number
or percentage of workers at such employment site;
(B) in the case of a manufacturing facility, of a
substantial increase in the cost of energy and other
inputs required for such facility to produce items
whose prices are competitive in the marketplace, and
such cost increase is not significantly offset by
emission allowance allocation to the facility pursuant
to title VII of the Clean Air Act, as added by this
Act; or
(C) of other documented occurrences of such
decreases at such employment site that the Secretary of
Labor determines are indicators of an adverse impact on
the industry in which such employer is primarily
engaged as a result of any requirement of title VII of
the Clean Air Act, as added by this Act.
(d) Determination by the Secretary of Labor.--As soon as possible
after the date on which a petition is filed under subsection (b) and
not later than 60 days after that date, the Secretary of Labor, in
consultation with the Administrator of the Environmental Protection
Agency, as necessary, shall--
(1) determine whether the worker or group of workers who
filed the petition or on whose behalf such a petition was filed
meets the requirements of subsection (c);
(2) upon reaching a determination with respect to a
petition, promptly publish a summary of the determination in
the Federal Register and on the website of the Department of
Labor, which shall include the first date of the total
separation or partial separation (or the risk of total
separation or partial separation) from employment with an
impacted employer of each worker covered by the petition; and
(3) if the Secretary determines that such petition meets
the requirements of subsection (c)--
(A) publish a certification that such worker or
workers are eligible for the assistance described in
subsections (e) and (f); and
(B) notify the representatives of the industry in
which the worker or workers were employed, the employer
or previous employer of such worker or workers, and any
entity that filed the petition on behalf of the worker
or workers, of--
(i) the assistance described in subsections
(e) and (f); and
(ii) an explanation of how to apply for
such assistance.
(e) Wage Adjustment Assistance.--
(1) Agreements with states.--An adversely affected worker
covered by a certification under subsection (d) may be eligible
to receive the wage adjustment assistance described in this
subsection--
(A) if the worker is or was employed in a State
with an agreement described in paragraph (2), by
submitting to such State an application for such
assistance; or
(B) if the worker is or was employed in a State
with no such agreement, by complying with the
regulations issued by the Secretary pursuant to
paragraph (4).
(2) State agreement.--The Secretary of Labor may enter into
an agreement with a State or State agency, which shall provide
for each of the following:
(A) Applications.--The State or State agency shall
receive applications from adversely affected workers
pursuant to paragraph (1)(A).
(B) Terms and conditions.--The terms and conditions
for amending, suspending, or terminating such
agreement.
(C) Relationship to unemployment insurance.--An
adversely affected worker receiving wage adjustment
assistance under this subsection shall not be eligible
for unemployment insurance otherwise payable to such
worker under the laws of the State.
(D) Responsibilities of cooperating agencies.--The
State or State agency shall perform outreach to
adversely affected workers in the State covered by a
certification under subsection (d) with respect to the
assistance available to such workers under this
subsection.
(E) State funds.--The Secretary shall provide funds
to the State or State agency to provide the assistance
described in this subsection, and in addition to such
funds, the State shall receive a payment from the
Secretary in an amount that is equal to 15 percent of
the amount of such funds for administrative expenses,
including--
(i) reviewing petitions under subsection
(b)(3);
(ii) collecting, validating, and reporting
data required under this section;
(iii) providing information and employment
services; and
(iv) administering wage adjustments under
this subsection.
(3) Wage adjustment assistance.--
(A) Eligibility.--Payment of a wage adjustment
assistance shall be made to an adversely affected
worker covered by a certification published by the
Secretary of Labor pursuant to subsection (d) who files
an application with a State or State agency under
paragraph (1) for such assistance for any month of
total separation or partial separation from employment
with an impacted employer, if the following conditions
are met:
(i) The first month of such total
separation or partial separation occurred
during the period beginning on the date that is
1 year before, and ending on the date that is 2
years after, the date of such certification.
(ii) Such worker had, in the 52-week period
ending with the week in which such total
separation or partial separation first
occurred, at least 26 weeks of full-time
employment or 1,040 hours of part-time
employment with an impacted employer, or, if
data with respect to weeks of employment are
not available, equivalent amounts of employment
computed under regulations prescribed by the
Secretary of Labor. For the purposes of this
clause, a week shall be treated as a week of
employment in which such worker--
(I) is on employer-authorized leave
for purposes of vacation, sickness,
injury, parental or family leave, or
inactive duty or active duty military
service for training;
(II) does not work because of a
disability that is compensable under a
workmen's compensation law or plan of a
State or the United States;
(III) had employment interrupted in
order to serve as a full-time
representative of a labor organization
in such firm; or
(IV) performs service in the
uniformed services as such term is
defined in section 4303 of title 38,
United States Code.
(B) Ineligibility for certain other benefits.--An
adversely affected worker receiving a payment under
this subsection shall be ineligible to receive any
other form of unemployment insurance for the period in
which such worker is receiving a wage adjustment
assistance under this section.
(C) Payments.--
(i) Amounts.--Payments under this
subsection shall be provided to an individual
in an amount which, for each month during an
applicable period, is equal to--
(I) the average amount of monthly
remuneration for employment paid to
such individual during the 12-month
period prior to the first month of
total separation or partial separation
identified in subparagraph (A)(i);
minus
(II) an amount equal to the sum
of--
(aa) any wages received by
such individual with respect to
employment during such month;
plus
(bb) any payments made to
such individual pursuant to a
Federal benefit program during
such month.
(ii) Notification.--During the applicable
period, an eligible individual shall notify the
Secretary of Labor or cooperating State agency,
if applicable, with respect to any wages,
payments, or compensation described in clause
(i)(II)(aa).
(iii) Applicable period.--For purposes of
this subsection, the term ``applicable period''
means, with respect to an individual receiving
assistance under this subsection, the 36-month
period subsequent to the first month of total
separation or partial separation identified in
subparagraph (A)(i).
(iv) Frequency.--Any payment to an eligible
individual under this subsection shall be
provided on a basis which is not less frequent
than once per month during the applicable
period.
(v) Adjustment for inflation.--In the case
of a calendar year beginning after the date
that the employment of an eligible individual
is terminated, the dollar amount of the payment
determined under subsection (a) shall be
increased by an amount equal to--
(I) such dollar amount, multiplied
by
(II) the cost-of-living adjustment
determined under section 1(f)(3) of the
Internal Revenue Code of 1986 for such
calendar year, determined by
substituting ``calendar year 2023'' for
``calendar year 2016'' in subparagraph
(A)(ii) thereof.
(vi) Tax treatment.--For purposes of the
Internal Revenue Code of 1986, the amount of
any payment provided to a qualified individual
under this subsection shall be included in
gross income and treated as wages (as defined
in section 3121(a) of such Code).
(4) Administration absent state agreement.--For any State
where there is no agreement in force between a State or its
agency under paragraph (1), the Secretary of Labor shall
promulgate regulations for the performance of all necessary
functions under this subsection.
(f) Other Assistance.--
(1) Health insurance continuation.--Not later than 1 year
after the date of enactment of this section, the Secretary of
Labor shall prescribe regulations to provide, for a period of
no longer than 36 months, 80 percent of the monthly premium of
any health insurance coverage that an adversely affected worker
who is covered by a certification published pursuant to
subsection (d) was receiving through such worker's employer
prior to the separation from employment, to be paid to any
health care insurance plan designated by the adversely affected
worker receiving assistance under this section.
(2) Educational benefits.--The Secretary of Labor, in
consultation with the Secretary of Education, shall carry out a
program of educational assistance for any eligible adversely
affected worker who is covered by a certification published
pursuant to subsection (d) and child of such worker that is
comparable to the program of education assistance administered
by the Secretary of Veterans Affairs under chapter 33 of title
38, United States Code, except that an eligible worker, and
each child of such worker, may receive the educational
assistance provided under the program.
(3) Employment services and training.--The Secretary of
Labor shall provide, directly or through agreements with the
States similar to agreements described in subsection (e), to
adversely affected workers covered by a certification under
this section information related to, and, when appropriate,
facilitate enrollment in--
(A) training, employment counseling, employment
opportunities, and placement services for adversely
affected workers, available in local and regional
areas, including information on how to apply for such
training and services;
(B) training programs and other services provided
by a State pursuant to title I of the Workforce
Innovation and Opportunity Act (29 U.S.C. 3111 et seq.)
and available in local and regional areas, including
information on how to apply for such training;
(C) educational opportunities and information
related to financial aid, including referring workers
to educational opportunity centers described in section
402F of the Higher Education Act of 1965 (20 U.S.C.
1070a-16);
(D) short-term prevocational services, including
development of learning skills, communications skills,
interviewing skills, personal maintenance skills, and
professional conduct to prepare individuals for
employment or training; and
(E) support services in local and regional areas,
including services related to childcare, personal
counseling (including substance abuse treatment,
suicide prevention, and mental health care), family
counseling, bankruptcy and financial counseling,
transportation, dependent care, housing assistance, and
need-related payments.
(g) Fraud and Recovery of Overpayments.--
(1) Recovery of payments to which an individual was not
entitled.--If the Secretary of Labor or a court of competent
jurisdiction determines that any person has received any
payment under this section to which the individual was not
entitled, such individual shall be liable to repay such amount
to the Secretary of Labor or to the State that made such
payment pursuant to an agreement under subsection (e), except
that the Secretary of Labor or such State may waive such
repayment if the Secretary or the State determines that--
(A) the payment was made without fault on the part
of such individual; and
(B) requiring such repayment would cause a
financial hardship for the individual (or the
individual's household, if applicable) when taking into
consideration the income and resources reasonably
available to the individual (or household) and other
ordinary living expenses of the individual (or
household).
(2) Means of recovery.--Unless an overpayment is otherwise
recovered, or waived under paragraph (1), the Secretary of
Labor shall recover the overpayment by deductions from any sums
payable to such person under this section, under any Federal
unemployment compensation law, or other Federal law
administered by the Secretary of Labor which provides for the
payment of assistance with respect to unemployment. Any amount
recovered under this section shall be returned to the Treasury
of the United States.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, Education and Workforce, and Science, Space, and Technology, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, Education and Workforce, and Science, Space, and Technology, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, Education and Workforce, and Science, Space, and Technology, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, Education and Workforce, and Science, Space, and Technology, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
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