[117th Congress Public Law 169]
[From the U.S. Government Publishing Office]
[[Page 1817]]
[[Page 136 STAT. 1818]]
Public Law 117-169
117th Congress
An Act
To provide for reconciliation pursuant to title II of S. Con. Res.
14. <<NOTE: Aug. 16, 2022 - [H.R. 5376]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <<NOTE: Appropriations
authorizations.>>
TITLE I--COMMITTEE ON FINANCE
Subtitle A--Deficit Reduction
SECTION 10001. AMENDMENT OF 1986 CODE.
Except as otherwise expressly provided, whenever in this subtitle an
amendment or repeal is expressed in terms of an amendment to, or repeal
of, a section or other provision, the reference shall be considered to
be made to a section or other provision of the Internal Revenue Code of
1986.
PART 1--CORPORATE TAX REFORM
SEC. 10101. CORPORATE ALTERNATIVE MINIMUM TAX.
(a) Imposition of Tax.--
(1) In general.--Paragraph (2) of section 55(b) <<NOTE: 26
USC 55.>> is amended to read as follows:
``(2) Corporations.--
``(A) Applicable corporations.--In the case of an
applicable corporation, the tentative minimum tax for
the taxable year shall be the excess of--
``(i) 15 percent of the adjusted financial
statement income for the taxable year (as
determined under section 56A), over
``(ii) the corporate AMT foreign tax credit
for the taxable year.
``(B) Other corporations.--In the case of any
corporation which is not an applicable corporation, the
tentative minimum tax for the taxable year shall be
zero.''.
(2) Applicable corporation.--Section 59 is amended by adding
at the end the following new subsection:
``(k) <<NOTE: Determinations.>> Applicable Corporation.--For
purposes of this part--
``(1) Applicable corporation defined.--
``(A) In general.--The term `applicable corporation'
means, with respect to any taxable year, any corporation
(other than an S corporation, a regulated investment
company, or a real estate investment trust) which meets
the
[[Page 136 STAT. 1819]]
average annual adjusted financial statement income test
of subparagraph (B) for one or more taxable years
which--
``(i) are prior to such taxable year, and
``(ii) <<NOTE: Effective date.>> end after
December 31, 2021.
``(B) <<NOTE: Time period.>> Average annual
adjusted financial statement income test.--For purposes
of this subsection--
``(i) a corporation meets the average annual
adjusted financial statement income test for a
taxable year if the average annual adjusted
financial statement income of such corporation
(determined without regard to section 56A(d)) for
the 3-taxable-year period ending with such taxable
year exceeds $1,000,000,000, and
``(ii) in the case of a corporation described
in paragraph (2), such corporation meets the
average annual adjusted financial statement income
test for a taxable year if--
``(I) the corporation meets the
requirements of clause (i) for such
taxable year (determined after the
application of paragraph (2)), and
``(II) the average annual adjusted
financial statement income of such
corporation (determined without regard
to the application of paragraph (2) and
without regard to section 56A(d)) for
the 3-taxable-year-period ending with
such taxable year is $100,000,000 or
more.
``(C) Exception.--Notwithstanding subparagraph (A),
the term `applicable corporation' shall not include any
corporation which otherwise meets the requirements of
subparagraph (A) if--
``(i) such corporation--
``(I) has a change in ownership, or
``(II) has a specified number (to be
determined by the Secretary and which
shall, as appropriate, take into account
the facts and circumstances of the
taxpayer) of consecutive taxable years,
including the most recent taxable year,
in which the corporation does not meet
the average annual adjusted financial
statement income test of subparagraph
(B), and
``(ii) the Secretary determines that it would
not be appropriate to continue to treat such
corporation as an applicable corporation.
The preceding sentence shall not apply to any
corporation if, after the Secretary makes the
determination described in clause (ii), such corporation
meets the average annual adjusted financial statement
income test of subparagraph (B) for any taxable year
beginning after the first taxable year for which such
determination applies.
``(D) <<NOTE: Definition.>> Special rules for
determining applicable corporation status.--
``(i) In general.--Solely for purposes of
determining whether a corporation is an applicable
corporation under this paragraph, all adjusted
financial statement income of persons treated as a
single employer with such corporation under
subsection (a) or (b) of section 52 (determined
with the modifications described in clause (ii))
shall be treated as adjusted financial
[[Page 136 STAT. 1820]]
statement income of such corporation, and adjusted
financial statement income of such corporation
shall be determined without regard to paragraphs
(2)(D)(i) and (11) of section 56A(c).
``(ii) Modifications.--For purposes of this
subparagraph--
``(I) <<NOTE: Applicability.>>
section 52(a) shall be applied by
substituting `component members' for
`members', and
``(II) for purposes of applying
section 52(b), the term `trade or
business' shall include any activity
treated as a trade or business under
paragraph (5) or (6) of section 469(c)
(determined without regard to the phrase
`To the extent provided in regulations'
in such paragraph (6)).
``(iii) Component member.--For purposes of
this subparagraph, the term `component member' has
the meaning given such term by section 1563(b),
except that the determination shall be made
without regard to section 1563(b)(2).
``(E) Other special rules.--
``(i) <<NOTE: Applicability.>> Corporations
in existence for less than 3 years.--If the
corporation was in existence for less than 3-
taxable years, subparagraph (B) shall be applied
on the basis of the period during which such
corporation was in existence.
``(ii) <<NOTE: Time period.>> Short taxable
years.--Adjusted financial statement income for
any taxable year of less than 12 months shall be
annualized by multiplying the adjusted financial
statement income for the short period by 12 and
dividing the result by the number of months in the
short period.
``(iii) Treatment of predecessors.--Any
reference in this subparagraph to a corporation
shall include a reference to any predecessor of
such corporation.
``(2) Special rule for foreign-parented multinational
groups.--
``(A) In general.--If a corporation is a member of a
foreign-parented multinational group for any taxable
year, then, solely for purposes of determining whether
such corporation meets the average annual adjusted
financial statement income test under paragraph
(1)(B)(ii)(I) for such taxable year, the adjusted
financial statement income of such corporation for such
taxable year shall include the adjusted financial
statement income of all members of such group. Solely
for purposes of this subparagraph, adjusted financial
statement income shall be determined without regard to
paragraphs (2)(D)(i), (3), (4), and (11) of section
56A(c).
``(B) <<NOTE: Definition.>> Foreign-parented
multinational group.--For purposes of subparagraph (A),
the term `foreign-parented multinational group' means,
with respect to any taxable year, two or more entities
if--
``(i) at least one entity is a domestic
corporation and another entity is a foreign
corporation,
[[Page 136 STAT. 1821]]
``(ii) such entities are included in the same
applicable financial statement with respect to
such year, and
``(iii) either--
``(I) the common parent of such
entities is a foreign corporation, or
``(II) if there is no common parent,
the entities are treated as having a
common parent which is a foreign
corporation under subparagraph (D).
``(C) Foreign corporations engaged in a trade or
business within the united states.--For purposes of this
paragraph, if a foreign corporation is engaged in a
trade or business within the United States, such trade
or business shall be treated as a separate domestic
corporation that is wholly owned by the foreign
corporation.
``(D) <<NOTE: Applicability.>> Other rules.--The
Secretary shall, applying the principles of this
section, prescribe rules for the application of this
paragraph, including rules for the determination of--
``(i) the entities (if any) which are to be to
be treated under subparagraph (B)(iii)(II) as
having a common parent which is a foreign
corporation,
``(ii) the entities to be included in a
foreign-parented multinational group, and
``(iii) the common parent of a foreign-
parented multinational group.
``(3) Regulations or other guidance.--The Secretary shall
provide regulations or other guidance for the purposes of
carrying out this subsection, including regulations or other
guidance--
``(A) providing a simplified method for determining
whether a corporation meets the requirements of
paragraph (1), and
``'(B) addressing the application of this subsection
to a corporation that experiences a change in
ownership.''.
(3) Reduction for base erosion and anti-abuse tax.--Section
55(a)(2) <<NOTE: 26 USC 55.>> is amended by inserting ``plus,
in the case of an applicable corporation, the tax imposed by
section 59A'' before the period at the end.
(4) Conforming amendments.--
(A) Section 55(a) is amended by striking ``In the
case of a taxpayer other than a corporation, there'' and
inserting ``There''.
(B)(i) Section 55(b)(1) is amended--
(I) by striking so much as precedes
subparagraph (A) and inserting the following:
``(1) Noncorporate taxpayers.--In the case of a taxpayer
other than a corporation--'', and
(II) by adding at the end the following new
subparagraph:
``(D) <<NOTE: Definition.>> Alternative minimum
taxable income.--The term `alternative minimum taxable
income' means the taxable income of the taxpayer for the
taxable year--
``(i) determined with the adjustments provided
in section 56 and section 58, and
``(ii) increased by the amount of the items of
tax preference described in section 57.
[[Page 136 STAT. 1822]]
If a taxpayer is subject to the regular tax, such
taxpayer shall be subject to the tax imposed by this
section (and, if the regular tax is determined by
reference to an amount other than taxable income, such
amount shall be treated as the taxable income of such
taxpayer for purposes of the preceding sentence).''.
(ii) <<NOTE: 26 USC 860E.>> Section 860E(a)(4) is
amended by striking ``55(b)(2)'' and inserting
``55(b)(1)(D)''.
(iii) Section 897(a)(2)(A)(i) is amended by striking
``55(b)(2)'' and inserting ``55(b)(1)(D)''.
(C) Section 11(d) is amended by striking ``the tax
imposed by subsection (a)'' and inserting ``the taxes
imposed by subsection (a) and section 55''.
(D) Section 12 is amended by adding at the end the
following new paragraph:
``(5) For alternative minimum tax, see section 55.''.
(E) Section 882(a)(1) is amended by inserting ``,
55,'' after ``section 11''.
(F) Section 6425(c)(1)(A) is amended to read as
follows:
``(A) the sum of--
``(i) the tax imposed by section 11 or
subchapter L of chapter 1, whichever is
applicable, plus
``(ii) the tax imposed by section 55, plus
``(iii) the tax imposed by section 59A,
over''.
(G) Section 6655(e)(2) is amended by inserting ``,
adjusted financial statement income (as defined in
section 56A),'' before ``and modified taxable income''
each place it appears in subparagraphs (A)(i) and
(B)(i).
(H) Section 6655(g)(1)(A) is amended by
redesignating clauses (ii) and (iii) as clauses (iii)
and (iv), respectively, and by inserting after clause
(i) the following new clause:
``(ii) the tax imposed by section 55,''.
(b) Adjusted Financial Statement Income.--
(1) In general.--Part VI of subchapter A of chapter 1 is
amended by inserting after section 56 the following new section:
``SEC. 56A. <<NOTE: 26 USC 56A.>> ADJUSTED FINANCIAL STATEMENT
INCOME.
``(a) <<NOTE: Definition.>> In General.--For purposes of this part,
the term `adjusted financial statement income' means, with respect to
any corporation for any taxable year, the net income or loss of the
taxpayer set forth on the taxpayer's applicable financial statement for
such taxable year, adjusted as provided in this section.
``(b) <<NOTE: Definition.>> Applicable Financial Statement.--For
purposes of this section, the term `applicable financial statement'
means, with respect to any taxable year, an applicable financial
statement (as defined in section 451(b)(3) or as specified by the
Secretary in regulations or other guidance) which covers such taxable
year.
``(c) General Adjustments.--
``(1) Statements covering different taxable years.--
Appropriate adjustments shall be made in adjusted financial
statement income in any case in which an applicable financial
statement covers a period other than the taxable year.
``(2) Special rules for related entities.--
``(A) <<NOTE: Applicability.>> Consolidated
financial statements.--If the financial results of a
taxpayer are reported on the
[[Page 136 STAT. 1823]]
applicable financial statement for a group of entities,
rules similar to the rules of section 451(b)(5) shall
apply.
``(B) Consolidated returns.--Except as provided in
regulations prescribed by the Secretary, if the taxpayer
is part of an affiliated group of corporations filing a
consolidated return for any taxable year, adjusted
financial statement income for such group for such
taxable year shall take into account items on the
group's applicable financial statement which are
properly allocable to members of such group.
``(C) Treatment of dividends and other amounts.--In
the case <<NOTE: Determination.>> of any corporation
which is not included on a consolidated return with the
taxpayer, adjusted financial statement income of the
taxpayer with respect to such other corporation shall be
determined by only taking into account the dividends
received from such other corporation (reduced to the
extent provided by the Secretary in regulations or other
guidance) and other amounts which are includible in
gross income or deductible as a loss under this chapter
(other than amounts required to be included under
sections 951 and 951A or such other amounts as provided
by the Secretary) with respect to such other
corporation.
``(D) Treatment of partnerships.--
``(i) In general.--Except as provided by the
Secretary, if the taxpayer is a partner in a
partnership, adjusted financial statement income
of the taxpayer with respect to such partnership
shall be adjusted to only take into account the
taxpayer's distributive share of adjusted
financial statement income of such partnership.
``(ii) Adjusted financial statement income of
partnerships.--For the purposes of this part, the
adjusted financial statement income of a
partnership shall be the partnership's net income
or loss set forth on such partnership's applicable
financial statement (adjusted under rules similar
to the rules of this section).
``(3) Adjustments to take into account certain items of
foreign income.--
``(A) In general.--If, for any taxable year, a
taxpayer is a United States shareholder of one or more
controlled foreign corporations, the adjusted financial
statement income of such taxpayer with respect to such
controlled foreign corporation (as determined under
paragraph (2)(C)) shall be adjusted to also take into
account such taxpayer's pro rata share (determined under
rules similar to the rules under section 951(a)(2)) of
items taken into account in computing the net income or
loss set forth on the applicable financial statement (as
adjusted under rules similar to those that apply in
determining adjusted financial statement income) of each
such controlled foreign corporation with respect to
which such taxpayer is a United States shareholder.
``(B) Negative adjustments.--In any case in which
the adjustment determined under subparagraph (A) would
result in a negative adjustment for such taxable year--
[[Page 136 STAT. 1824]]
``(i) no adjustment shall be made under this
paragraph for such taxable year, and
``(ii) the amount of the adjustment determined
under this paragraph for the succeeding taxable
year (determined without regard to this paragraph)
shall be reduced by an amount equal to the
negative adjustment for such taxable year.
``(4) <<NOTE: Determination. Applicability.>> Effectively
connected income.--In the case of a foreign corporation, to
determine adjusted financial statement income, the principles of
section 882 shall apply.
``(5) Adjustments for certain taxes.--Adjusted financial
statement income shall be appropriately adjusted to disregard
any Federal income taxes, or income, war profits, or excess
profits taxes (within the meaning of section 901) with respect
to a foreign country or possession of the United States, which
are taken into account on the taxpayer's applicable financial
statement. To the extent provided by the Secretary, the
preceding sentence shall not apply to income, war profits, or
excess profits taxes (within the meaning of section 901) that
are imposed by a foreign country or possession of the United
States and taken into account on the taxpayer's applicable
financial statement if the taxpayer does not choose to have the
benefits of subpart A of part III of subchapter N for the
taxable year. The Secretary shall
prescribe <<NOTE: Regulations. Guidelines.>> such regulations
or other guidance as may be necessary and appropriate to provide
for the proper treatment of current and deferred taxes for
purposes of this paragraph, including the time at which such
taxes are properly taken into account.
``(6) Adjustment with respect to disregarded entities.--
Adjusted financial statement income shall be adjusted to take
into account any adjusted financial statement income of a
disregarded entity owned by the taxpayer.
``(7) <<NOTE: Applicability.>> Special rule for
cooperatives.--In the case of a cooperative to which section
1381 applies, the adjusted financial statement income
(determined without regard to this paragraph) shall be reduced
by the amounts referred to in section 1382(b) (relating to
patronage dividends and per-unit retain allocations) to the
extent such amounts were not otherwise taken into account in
determining adjusted financial statement income.
``(8) Rules for alaska native corporations.--Adjusted
financial statement income shall be appropriately adjusted to
allow--
``(A) cost recovery and depletion attributable to
property the basis of which is determined under section
21(c) of the Alaska Native Claims Settlement Act (43
U.S.C. 1620(c)), and
``(B) deductions for amounts payable made pursuant
to section 7(i) or section 7(j) of such Act (43 U.S.C.
1606(i) and 1606(j)) only at such time as the deductions
are allowed for tax purposes.
``(9) Amounts attributable to elections for direct payment
of certain credits.--Adjusted financial statement income shall
be appropriately adjusted to disregard any amount treated as a
payment against the tax imposed by subtitle A pursuant to an
election under section 48D(d) or 6417, to the
[[Page 136 STAT. 1825]]
extent such amount was not otherwise taken into account under
paragraph (5).
``(10) Consistent treatment of mortgage servicing income of
taxpayer other than a regulated investment company.--
``(A) In general.--Adjusted financial statement
income shall be adjusted so as not to include any item
of income in connection with a mortgage servicing
contract any earlier than when such income is included
in gross income under any other provision of this
chapter.
``(B) Rules for amounts not representing reasonable
compensation.-- <<NOTE: Determination.>> The Secretary
shall provide regulations to prevent the avoidance of
taxes imposed by this chapter with respect to amounts
not representing reasonable compensation (as determined
by the Secretary) with respect to a mortgage servicing
contract.
``(11) Adjustment with respect to defined benefit
pensions.--
``(A) <<NOTE: Regulations. Guidelines.>> In
general.--Except as otherwise provided in rules
prescribed by the Secretary in regulations or other
guidance, adjusted financial statement income shall be--
``(i) adjusted to disregard any amount of
income, cost, or expense that would otherwise be
included on the applicable financial statement in
connection with any covered benefit plan,
``(ii) increased by any amount of income in
connection with any such covered benefit plan that
is included in the gross income of the corporation
under any other provision of this chapter, and
``(iii) reduced by deductions allowed under
any other provision of this chapter with respect
to any such covered benefit plan.
``(B) <<NOTE: Definition.>> Covered benefit plan.--
For purposes of this paragraph, the term `covered
benefit plan' means--
``(i) a defined benefit plan (other than a
multiemployer plan described in section 414(f)) if
the trust which is part of such plan is an
employees' trust described in section 401(a) which
is exempt from tax under section 501(a),
``(ii) any qualified foreign plan (as defined
in section 404A(e)), or
``(iii) any other defined benefit plan which
provides post-employment benefits other than
pension benefits.
``(12) Tax-exempt entities.--In the case of an organization
subject to tax under section 511, adjusted financial statement
income shall be appropriately adjusted to only take into account
any adjusted financial statement income--
``(A) of an unrelated trade or business (as defined
in section 513) of such organization, or
``(B) derived from debt-financed property (as
defined in section 514) to the extent that income from
such property is treated as unrelated business taxable
income.
``(13) Depreciation.--Adjusted financial statement income
shall be--
``(A) <<NOTE: Applicability.>> reduced by
depreciation deductions allowed under section 167 with
respect to property to which section 168
[[Page 136 STAT. 1826]]
applies to the extent of the amount allowed as
deductions in computing taxable income for the taxable
year, and
``(B) appropriately adjusted--
``(i) to disregard any amount of depreciation
expense that is taken into account on the
taxpayer's applicable financial statement with
respect to such property, and
``(ii) to take into account any other item
specified by the Secretary in order to provide
that such property is accounted for in the same
manner as it is accounted for under this chapter.
``(14) Qualified wireless spectrum.--
``(A) In general.--Adjusted financial statement
income shall be--
``(i) reduced by amortization deductions
allowed under section 197 with respect to
qualified wireless spectrum to the extent of the
amount allowed as deductions in computing taxable
income for the taxable year, and
``(ii) appropriately adjusted--
``(I) to disregard any amount of
amortization expense that is taken into
account on the taxpayer's applicable
financial statement with respect to such
qualified wireless spectrum, and
``(II) to take into account any
other item specified by the Secretary in
order to provide that such qualified
wireless spectrum is accounted for in
the same manner as it is accounted for
under this chapter.
``(B) <<NOTE: Definition.>> Qualified wireless
spectrum.--For purposes of this paragraph, the term
`qualified wireless spectrum' means wireless spectrum
which--
``(i) is used in the trade or business of a
wireless telecommunications carrier, and
``(ii) <<NOTE: Effective date.>> was acquired
after December 31, 2007, and before the date of
enactment of this section.
``(15) <<NOTE: Regulations. Guidelines. Determination.>>
Secretarial authority to adjust items.--The Secretary shall
issue regulations or other guidance to provide for such
adjustments to adjusted financial statement income as the
Secretary determines necessary to carry out the purposes of this
section, including adjustments--
``(A) to prevent the omission or duplication of any
item, and
``(B) to carry out the principles of part II of
subchapter C of this chapter (relating to corporate
liquidations), part III of subchapter C of this chapter
(relating to corporate organizations and
reorganizations), and part II of subchapter K of this
chapter (relating to partnership contributions and
distributions).
``(d) <<NOTE: Determinations.>> Deduction for Financial Statement
Net Operating Loss.--
``(1) In general.--Adjusted financial statement income
(determined after application of subsection (c) and without
regard to this subsection) shall be reduced by an amount equal
to the lesser of--
``(A) the aggregate amount of financial statement
net operating loss carryovers to the taxable year, or
[[Page 136 STAT. 1827]]
``(B) 80 percent of adjusted financial statement
income computed without regard to the deduction
allowable under this subsection.
``(2) Financial statement net operating loss carryover.--A
financial statement net operating loss for any taxable year
shall be a financial statement net operating loss carryover to
each taxable year following the taxable year of the loss. The
portion of such loss which shall be carried to subsequent
taxable years shall be the amount of such loss remaining (if
any) after the application of paragraph (1).
``(3) <<NOTE: Effective date.>> Financial statement net
operating loss defined.--For purposes of this subsection, the
term `financial statement net operating loss' means the amount
of the net loss (if any) set forth on the corporation's
applicable financial statement (determined after application of
subsection (c) and without regard to this subsection) for
taxable years ending after December 31, 2019.
``(e) Regulations and Other Guidance.--The Secretary shall provide
for such regulations and other guidance as necessary to carry out the
purposes of this section, including regulations and other guidance
relating to the effect of the rules of this section on partnerships with
income taken into account by an applicable corporation.''.
(2) Clerical amendment.--The table of sections for part VI
of subchapter A of chapter 1 <<NOTE: 26 USC 55 prec.>> is
amended by inserting after the item relating to section 56 the
following new item:
``Sec. 56A. Adjusted financial statement income.''.
(c) Corporate AMT Foreign Tax Credit.--Section 59, as amended by
this section, <<NOTE: 26 USC 59.>> is amended by adding at the end the
following new subsection:
``(l) Corporate AMT Foreign Tax Credit.--
``(1) In general.--For purposes of this part, if an
applicable corporation chooses to have the benefits of subpart A
of part III of subchapter N for any taxable year, the corporate
AMT foreign tax credit for the taxable year of the applicable
corporation is an amount equal to sum of--
``(A) the lesser of--
``(i) <<NOTE: Determination.>> the aggregate
of the applicable corporation's pro rata share (as
determined under section 56A(c)(3)) of the amount
of income, war profits, and excess profits taxes
(within the meaning of section 901) imposed by any
foreign country or possession of the United States
which are--
``(I) taken into account on the
applicable financial statement of each
controlled foreign corporation with
respect to which the applicable
corporation is a United States
shareholder, and
``(II) paid or accrued (for Federal
income tax purposes) by each such
controlled foreign corporation, or
``(ii) the product of the amount of the
adjustment under section 56A(c)(3) and the
percentage specified in section 55(b)(2)(A)(i),
and
``(B) in the case of an applicable corporation that
is a domestic corporation, the amount of income, war
profits, and excess profits taxes (within the meaning of
section
[[Page 136 STAT. 1828]]
901) imposed by any foreign country or possession of the
United States to the extent such taxes are--
``(i) taken into account on the applicable
corporation's applicable financial statement, and
``(ii) paid or accrued (for Federal income tax
purposes) by the applicable corporation.
``(2) <<NOTE: Time period.>> Carryover of excess tax
paid.--For any taxable year for which an applicable corporation
chooses to have the benefits of subpart A of part III of
subchapter N, the excess of the amount described in paragraph
(1)(A)(i) over the amount described in paragraph (1)(A)(ii)
shall increase the amount described in paragraph (1)(A)(i) in
any of the first 5 succeeding taxable years to the extent not
taken into account in a prior taxable year.
``(3) Regulations or other guidance.--The Secretary shall
provide for such regulations or other guidance as is necessary
to carry out the purposes of this subsection.''.
(d) Treatment of General Business Credit.--Section
38(c)(6)(E) <<NOTE: 26 USC 38.>> is amended to read as follows:
``(E) <<NOTE: Applicability.>> Corporations.--In
the case of a corporation--
``(i) the first sentence of paragraph (1)
shall be applied by substituting `25 percent of
the taxpayer's net income tax as exceeds $25,000'
for `the greater of' and all that follows,
``(ii) paragraph (2)(A) shall be applied
without regard to clause (ii)(I) thereof, and
``(iii) paragraph (4)(A) shall be applied
without regard to clause (ii)(I) thereof.''.
(e) Credit for Prior Year Minimum Tax Liability.--
(1) In general.--Section 53(e) is amended to read as
follows:
``(e) Application to Applicable Corporations.--In the case of a
corporation--
``(1) subsection (b)(1) shall be applied by substituting
`the net minimum tax for all prior taxable years beginning after
2022' for `the adjusted net minimum tax imposed for all prior
taxable years beginning after 1986', and
``(2) the amount determined under subsection (c)(1) shall be
increased by the amount of tax imposed under section 59A for the
taxable year.''.
(2) Conforming amendments.--Section 53(d) is amended--
(A) in paragraph (2), by striking ``, except that in
the case'' and all that follows through ``treated as
zero'', and
(B) by striking paragraph (3).
(f) <<NOTE: 26 USC 11 note.>> Effective Date.--The amendments made
by this section shall apply to taxable years beginning after December
31, 2022.
PART 2--EXCISE TAX ON REPURCHASE OF CORPORATE STOCK
SEC. 10201. EXCISE TAX ON REPURCHASE OF CORPORATE STOCK.
(a) In General.--Subtitle D is amended by inserting after chapter 36
the following new chapter:
[[Page 136 STAT. 1829]]
``CHAPTER 37 <<NOTE: 26 USC 4501 prec.>> --REPURCHASE OF CORPORATE STOCK
``Sec. 4501. Repurchase of corporate stock.
``SEC. 4501. <<NOTE: 26 USC 4501.>> REPURCHASE OF CORPORATE
STOCK.
``(a) General Rule.--There is hereby imposed on each covered
corporation a tax equal to 1 percent of the fair market value of any
stock of the corporation which is repurchased by such corporation during
the taxable year.
``(b) <<NOTE: Definition.>> Covered Corporation.--For purposes of
this section, the term `covered corporation' means any domestic
corporation the stock of which is traded on an established securities
market (within the meaning of section 7704(b)(1)).
``(c) <<NOTE: Definitions.>> Repurchase.--For purposes of this
section--
``(1) In general.--The term `repurchase' means--
``(A) a redemption within the meaning of section
317(b) with regard to the stock of a covered
corporation, and
``(B) <<NOTE: Determination.>> any transaction
determined by the Secretary to be economically similar
to a transaction described in subparagraph (A).
``(2) Treatment of purchases by specified affiliates.--
``(A) In general.--The acquisition of stock of a
covered corporation by a specified affiliate of such
covered corporation, from a person who is not the
covered corporation or a specified affiliate of such
covered corporation, shall be treated as a repurchase of
the stock of the covered corporation by such covered
corporation.
``(B) Specified affiliate.--For purposes of this
section, the term `specified affiliate' means, with
respect to any corporation--
``(i) any corporation more than 50 percent of
the stock of which is owned (by vote or by value),
directly or indirectly, by such corporation, and
``(ii) any partnership more than 50 percent of
the capital interests or profits interests of
which is held, directly or indirectly, by such
corporation.
``(3) Adjustment.--The amount taken into account under
subsection (a) with respect to any stock repurchased by a
covered corporation shall be reduced by the fair market value of
any stock issued by the covered corporation during the taxable
year, including the fair market value of any stock issued or
provided to employees of such covered corporation or employees
of a specified affiliate of such covered corporation during the
taxable year, whether or not such stock is issued or provided in
response to the exercise of an option to purchase such stock.
``(d) <<NOTE: Determinations.>> Special Rules for Acquisition of
Stock of Certain Foreign Corporations.--
``(1) In general.--In the case of an acquisition of stock of
an applicable foreign corporation by a specified affiliate of
such corporation (other than a foreign corporation or a foreign
partnership (unless such partnership has a domestic entity as a
direct or indirect partner)) from a person who is not the
applicable foreign corporation or a specified affiliate of such
applicable foreign corporation, for purposes of this section--
[[Page 136 STAT. 1830]]
``(A) such specified affiliate shall be treated as a
covered corporation with respect to such acquisition,
``(B) such acquisition shall be treated as a
repurchase of stock of a covered corporation by such
covered corporation, and
``(C) the adjustment under subsection (c)(3) shall
be determined only with respect to stock issued or
provided by such specified affiliate to employees of the
specified affiliate.
``(2) Surrogate foreign corporations.--In the case of a
repurchase of stock of a covered surrogate foreign corporation
by such covered surrogate foreign corporation, or an acquisition
of stock of a covered surrogate foreign corporation by a
specified affiliate of such corporation, for purposes of this
section--
``(A) the expatriated entity with respect to such
covered surrogate foreign corporation shall be treated
as a covered corporation with respect to such repurchase
or acquisition,
``(B) such repurchase or acquisition shall be
treated as a repurchase of stock of a covered
corporation by such covered corporation, and
``(C) the adjustment under subsection (c)(3) shall
be determined only with respect to stock issued or
provided by such expatriated entity to employees of the
expatriated entity.
``(3) Definitions.--For purposes of this subsection--
``(A) Applicable foreign corporation.--The term
`applicable foreign corporation' means any foreign
corporation the stock of which is traded on an
established securities market (within the meaning of
section 7704(b)(1)).
``(B) Covered surrogate foreign corporation.--The
term `covered surrogate foreign corporation' means any
surrogate foreign corporation (as determined under
section 7874(a)(2)(B) by substituting `September 20,
2021' for `March 4, 2003' each place it appears) the
stock of which is traded on an established securities
market (within the meaning of section 7704(b)(1)), but
only with respect to taxable years which include any
portion of the applicable period with respect to such
corporation under section 7874(d)(1).
``(C) Expatriated entity.--The term `expatriated
entity' has the meaning given such term by section
7874(a)(2)(A).
``(e) Exceptions.--Subsection (a) shall not apply--
``(1) to the extent that the repurchase is part of a
reorganization (within the meaning of section 368(a)) and no
gain or loss is recognized on such repurchase by the shareholder
under chapter 1 by reason of such reorganization,
``(2) in any case in which the stock repurchased is, or an
amount of stock equal to the value of the stock repurchased is,
contributed to an employer-sponsored retirement plan, employee
stock ownership plan, or similar plan,
``(3) in any case in which the total value of the stock
repurchased during the taxable year does not exceed $1,000,000,
``(4) under regulations prescribed by the Secretary, in
cases in which the repurchase is by a dealer in securities in
the ordinary course of business,
[[Page 136 STAT. 1831]]
``(5) to repurchases by a regulated investment company (as
defined in section 851) or a real estate investment trust, or
``(6) to the extent that the repurchase is treated as a
dividend for purposes of this title.
``(f) Regulations and Guidance.--The Secretary shall prescribe such
regulations and other guidance as are necessary or appropriate to carry
out, and to prevent the avoidance of, the purposes of this section,
including regulations and other guidance--
``(1) to prevent the abuse of the exceptions provided by
subsection (e),
``(2) to address special classes of stock and preferred
stock, and
``(3) for the application of the rules under subsection
(d).''.
(b) Tax Not Deductible.--Paragraph (6) of section 275(a) <<NOTE: 26
USC 275.>> is amended by inserting ``37,'' before ``41''.
(c) Clerical Amendment.--The table of chapters for subtitle D
is <<NOTE: 26 USC 4001 prec.>> amended by inserting after the item
relating to chapter 36 the following new item:
``Chapter 37--Repurchase of Corporate Stock''.
(d) <<NOTE: 26 USC 4501 note.>> Effective Date.--The amendments
made by this section shall apply to repurchases (within the meaning of
section 4501(c) of the Internal Revenue Code of 1986, as added by this
section) of stock after December 31, 2022.
PART 3--FUNDING THE INTERNAL REVENUE SERVICE AND IMPROVING TAXPAYER
COMPLIANCE
SEC. 10301. ENHANCEMENT OF INTERNAL REVENUE SERVICE RESOURCES.
In General.--The following sums are appropriated, out of any money
in the Treasury not otherwise appropriated, for the fiscal year ending
September 30, 2022:
(1) Internal revenue service.--
(A) In general.--
(i) Taxpayer services.--For necessary expenses
of the Internal Revenue Service to provide
taxpayer services, including pre-filing assistance
and education, filing and account services,
taxpayer advocacy services, and other services as
authorized by 5 U.S.C. 3109, at such rates as may
be determined by the Commissioner, $3,181,500,000,
to remain available until September 30, 2031:
Provided, That these amounts shall be in addition
to amounts otherwise available for such purposes.
(ii) Enforcement.--For necessary expenses for
tax enforcement activities of the Internal Revenue
Service to determine and collect owed taxes, to
provide legal and litigation support, to conduct
criminal investigations (including investigative
technology), to provide digital asset monitoring
and compliance activities, to enforce criminal
statutes related to violations of internal revenue
laws and other financial crimes, to purchase and
hire passenger motor vehicles (31 U.S.C.
[[Page 136 STAT. 1832]]
1343(b)), and to provide other services as
authorized by 5 U.S.C. 3109, at such rates as may
be determined by the Commissioner,
$45,637,400,000, to remain available until
September 30, 2031: Provided, That these amounts
shall be in addition to amounts otherwise
available for such purposes.
(iii) Operations support.--For necessary
expenses of the Internal Revenue Service to
support taxpayer services and enforcement
programs, including rent payments; facilities
services; printing; postage; physical security;
headquarters and other IRS-wide administration
activities; research and statistics of income;
telecommunications; information technology
development, enhancement, operations, maintenance,
and security; the hire of passenger motor vehicles
(31 U.S.C. 1343(b)); the operations of the
Internal Revenue Service Oversight Board; and
other services as authorized by 5 U.S.C. 3109, at
such rates as may be determined by the
Commissioner, $25,326,400,000, to remain available
until September 30, 2031: Provided, That these
amounts shall be in addition to amounts otherwise
available for such purposes.
(iv) Business systems modernization.--For
necessary expenses of the Internal Revenue
Service's business systems modernization program,
including development of callback technology and
other technology to provide a more personalized
customer service but not including the operation
and maintenance of legacy systems, $4,750,700,000,
to remain available until September 30, 2031:
Provided, That these amounts shall be in addition
to amounts otherwise available for such purposes.
(B) Task force to design an irs-run free ``direct
efile'' tax return system.--For necessary expenses of
the Internal Revenue Service to deliver to Congress,
within nine months following the date of the enactment
of this Act, a report on (I) the cost (including options
for differential coverage based on taxpayer adjusted
gross income and return complexity) of developing and
running a free direct efile tax return system, including
costs to build and administer each release, with a focus
on multi-lingual and mobile-friendly features and
safeguards for taxpayer data; (II) taxpayer opinions,
expectations, and level of trust, based on surveys, for
such a free direct efile system; and (III) the opinions
of an independent third-party on the overall
feasibility, approach, schedule, cost, organizational
design, and Internal Revenue Service capacity to deliver
such a direct efile tax return system, $15,000,000, to
remain available until September 30, 2023: Provided,
That these amounts shall be in addition to amounts
otherwise available for such purposes.
(2) Treasury inspector general for tax administration.--For
necessary expenses of the Treasury Inspector General for Tax
Administration in carrying out the Inspector General Act of
1978, as amended, including purchase and hire of passenger motor
vehicles (31 U.S.C. 1343(b)); and services
[[Page 136 STAT. 1833]]
authorized by 5 U.S.C. 3109, at such rates as may be determined
by the Inspector General for Tax Administration, $403,000,000,
to remain available until September 30, 2031: Provided, That
these amounts shall be in addition to amounts otherwise
available for such purposes.
(3) Office of tax policy.--For necessary expenses of the
Office of Tax Policy of the Department of the Treasury to carry
out functions related to promulgating regulations under the
Internal Revenue Code of 1986, $104,533,803, to remain available
until September 30, 2031: Provided, That these amounts shall be
in addition to amounts otherwise available for such purposes.
(4) United states tax court.--For necessary expenses of the
United States Tax Court, including contract reporting and other
services as authorized by 5 U.S.C. 3109; $153,000,000, to remain
available until September 30, 2031: Provided, That these amounts
shall be in addition to amounts otherwise available for such
purposes.
(5) Treasury departmental offices.--For necessary expenses
of the Departmental Offices of the Department of the Treasury to
provide for oversight and implementation support for actions by
the Internal Revenue Service to implement this Act and the
amendments made by this Act, $50,000,000, to remain available
until September 30, 2031: Provided, That these amounts shall be
in addition to amounts otherwise available for such purposes.
Subtitle B--Prescription Drug Pricing Reform
PART 1--LOWERING PRICES THROUGH DRUG PRICE NEGOTIATION
SEC. 11001. PROVIDING FOR LOWER PRICES FOR CERTAIN HIGH-PRICED
SINGLE SOURCE DRUGS.
(a) Program To Lower Prices for Certain High-Priced Single Source
Drugs.--Title XI of the Social Security Act is amended by adding after
section 1184 (42 U.S.C. 1320e-3) the following new part:
``PART E--PRICE NEGOTIATION PROGRAM TO LOWER PRICES FOR CERTAIN HIGH-
PRICED SINGLE SOURCE DRUGS
``SEC. 1191. <<NOTE: 42 USC 1320f.>> ESTABLISHMENT OF PROGRAM.
``(a) In General.--The Secretary shall establish a Drug Price
Negotiation Program (in this part referred to as the `program'). Under
the program, with respect to each price applicability period, the
Secretary shall--
``(1) <<NOTE: Publication. Lists.>> publish a list of
selected drugs in accordance with section 1192;
``(2) <<NOTE: Contracts.>> enter into agreements with
manufacturers of selected drugs with respect to such period, in
accordance with section 1193;
[[Page 136 STAT. 1834]]
``(3) negotiate and, if applicable, renegotiate maximum fair
prices for such selected drugs, in accordance with section 1194;
``(4) carry out the publication and administrative duties
and compliance monitoring in accordance with sections 1195 and
1196.
``(b) Definitions Relating to Timing.--For purposes of this part:
``(1) Initial price applicability year.--The term `initial
price applicability year' means a year (beginning with 2026).
``(2) Price applicability period.--The term `price
applicability period' means, with respect to a qualifying single
source drug, the period beginning with the first initial price
applicability year with respect to which such drug is a selected
drug and ending with the last year during which the drug is a
selected drug.
``(3) Selected drug publication date.--The term `selected
drug publication date' means, with respect to each initial price
applicability year, February 1 of the year that begins 2 years
prior to such year.
``(4) Negotiation period.--The term `negotiation period'
means, with respect to an initial price applicability year with
respect to a selected drug, the period--
``(A) beginning on the sooner of--
``(i) the date on which the manufacturer of
the drug and the Secretary enter into an agreement
under section 1193 with respect to such drug; or
``(ii) February 28 following the selected drug
publication date with respect to such selected
drug; and
``(B) ending on November 1 of the year that begins 2
years prior to the initial price applicability year.
``(c) Other Definitions.--For purposes of this part:
``(1) Manufacturer.--The term `manufacturer' has the meaning
given that term in section 1847A(c)(6)(A).
``(2) Maximum fair price eligible individual.--The term
`maximum fair price eligible individual' means, with respect to
a selected drug--
``(A) in the case such drug is dispensed to the
individual at a pharmacy, by a mail order service, or by
another dispenser, an individual who is enrolled in a
prescription drug plan under part D of title XVIII or an
MA-PD plan under part C of such title if coverage is
provided under such plan for such selected drug; and
``(B) in the case such drug is furnished or
administered to the individual by a hospital, physician,
or other provider of services or supplier, an individual
who is enrolled under part B of title XVIII, including
an individual who is enrolled in an MA plan under part C
of such title, if payment may be made under part B for
such selected drug.
``(3) Maximum fair price.--The term `maximum fair price'
means, with respect to a year during a price applicability
period and with respect to a selected drug (as defined in
section 1192(c)) with respect to such period, the price
negotiated pursuant to section 1194, and updated pursuant to
section 1195(b), as applicable, for such drug and year.
[[Page 136 STAT. 1835]]
``(4) Reference product.--The term `reference product' has
the meaning given such term in section 351(i) of the Public
Health Service Act.
``(5) Total expenditures.--The term `total expenditures'
includes, in the case of expenditures with respect to part D of
title XVIII, the total gross covered prescription drug costs (as
defined in section 1860D-15(b)(3)). The term `total
expenditures' excludes, in the case of expenditures with respect
to part B of such title, expenditures for a drug or biological
product that are bundled or packaged into the payment for
another service.
``(6) Unit.--The term `unit' means, with respect to a drug
or biological product, the lowest identifiable amount (such as a
capsule or tablet, milligram of molecules, or grams) of the drug
or biological product that is dispensed or furnished.
``(d) <<NOTE: Regulations. Applicability.>> Timing for Initial
Price Applicability Year 2026.--Notwithstanding the provisions of this
part, in the case of initial price applicability year 2026, the
following rules shall apply for purposes of implementing the program:
``(1) Subsection (b)(3) shall be applied by substituting
`September 1, 2023' for `, with respect to each initial price
applicability year, February 1 of the year that begins 2 years
prior to such year'.
``(2) Subsection (b)(4) shall be applied--
``(A) in subparagraph (A)(ii), by substituting
`October 1, 2023' for `February 28 following the
selected drug publication date with respect to such
selected drug'; and
``(B) in subparagraph (B), by substituting `August
1, 2024' for `November 1 of the year that begins 2 years
prior to the initial price applicability year'.
``(3) Section 1192 shall be applied--
``(A) in subsection (b)(1)(A), by substituting
`during the period beginning on June 1, 2022, and ending
on May 31, 2023' for `during the most recent period of
12 months prior to the selected drug publication date
(but ending not later than October 31 of the year prior
to the year of such drug publication date), with respect
to such year, for which data are available'; and
``(B) in subsection (d)(1)(A), by substituting
`during the period beginning on June 1, 2022, and ending
on May 31, 2023' for `during the most recent period for
which data are available of at least 12 months prior to
the selected drug publication date (but ending no later
than October 31 of the year prior to the year of such
drug publication date), with respect to such year'.
``(4) Section 1193(a) shall be applied by substituting
`October 1, 2023' for `February 28 following the selected drug
publication date with respect to such selected drug'.
``(5) Section 1194(b)(2) shall be applied--
``(A) in subparagraph (A), by substituting `October
2, 2023' for `March 1 of the year of the selected drug
publication date, with respect to the selected drug';
``(B) in subparagraph (B), by substituting `February
1, 2024' for `the June 1 following the selected drug
publication date'; and
``(C) in subparagraph (E), by substituting `August
1, 2024' for `the first day of November following the
selected
[[Page 136 STAT. 1836]]
drug publication date, with respect to the initial price
applicability year '.
``(6) Section 1195(a)(1) shall be applied by substituting
`September 1, 2024' for `November 30 of the year that is 2 years
prior to such initial price applicability year'.
``SEC. 1192. <<NOTE: 42 USC 1320f-1.>> SELECTION OF NEGOTIATION-
ELIGIBLE DRUGS AS SELECTED DRUGS.
``(a) <<NOTE: Deadlines. Publication. List. Time periods.>> In
General.--Not later than the selected drug publication date with respect
to an initial price applicability year, in accordance with subsection
(b), the Secretary shall select and publish a list of--
``(1) with respect to the initial price applicability year
2026, 10 negotiation-eligible drugs described in subparagraph
(A) of subsection (d)(1), but not subparagraph (B) of such
subsection, with respect to such year (or, all (if such number
is less than 10) such negotiation-eligible drugs with respect to
such year);
``(2) with respect to the initial price applicability year
2027, 15 negotiation-eligible drugs described in subparagraph
(A) of subsection (d)(1), but not subparagraph (B) of such
subsection, with respect to such year (or, all (if such number
is less than 15) such negotiation-eligible drugs with respect to
such year);
``(3) with respect to the initial price applicability year
2028, 15 negotiation-eligible drugs described in subparagraph
(A) or (B) of subsection (d)(1) with respect to such year (or,
all (if such number is less than 15) such negotiation-eligible
drugs with respect to such year); and
``(4) with respect to the initial price applicability year
2029 or a subsequent year, 20 negotiation-eligible drugs
described in subparagraph (A) or (B) of subsection (d)(1), with
respect to such year (or, all (if such number is less than 20)
such negotiation-eligible drugs with respect to such year).
Subject to subsection (c)(2) and section 1194(f)(5), each drug published
on the list pursuant to the previous sentence shall be subject to the
negotiation process under section 1194 for the negotiation period with
respect to such initial price applicability year (and the renegotiation
process under such section as applicable for any subsequent year during
the applicable price applicability period).
``(b) Selection of Drugs.--
``(1) In general.--In carrying out subsection (a), subject
to paragraph (2), the Secretary shall, with respect to an
initial price applicability year, do the following:
``(A) <<NOTE: Determination. Time periods.>> Rank
negotiation-eligible drugs described in subsection
(d)(1) according to the total expenditures for such
drugs under parts B and D of title XVIII, as determined
by the Secretary, during the most recent period of 12
months prior to the selected drug publication date (but
ending not later than October 31 of the year prior to
the year of such drug publication date), with respect to
such year, for which data are available, with the
negotiation-eligible drugs with the highest total
expenditures being ranked the highest.
``(B) Select from such ranked drugs with respect to
such year the negotiation-eligible drugs with the
highest such rankings.
``(2) <<NOTE: Applicability.>> High spend part d drugs for
2026 and 2027.--With respect to the initial price applicability
year 2026 and with
[[Page 136 STAT. 1837]]
respect to the initial price applicability year 2027, the
Secretary shall apply paragraph (1) as if the reference to
`negotiation-eligible drugs described in subsection (d)(1)' were
a reference to `negotiation-eligible drugs described in
subsection (d)(1)(A)' and as if the reference to `total
expenditures for such drugs under parts B and D of title XVIII'
were a reference to `total expenditures for such drugs under
part D of title XVIII'.
``(c) Selected Drug.--
``(1) <<NOTE: Time period. Determination.>> In general.--
For purposes of this part, in accordance with subsection (e)(2)
and subject to paragraph (2), each negotiation-eligible drug
included on the list published under subsection (a) with respect
to an initial price applicability year shall be referred to as a
`selected drug' with respect to such year and each subsequent
year beginning before the first year that begins at least 9
months after the date on which the Secretary determines at least
one drug or biological product--
``(A) is approved or licensed (as applicable)--
``(i) under section 505(j) of the Federal
Food, Drug, and Cosmetic Act using such drug as
the listed drug; or
``(ii) under section 351(k) of the Public
Health Service Act using such drug as the
reference product; and
``(B) is marketed pursuant to such approval or
licensure.
``(2) Clarification.--A negotiation-eligible drug--
``(A) that is included on the list published under
subsection (a) with respect to an initial price
applicability year; and
``(B) for which the Secretary makes a determination
described in paragraph (1) before or during the
negotiation period with respect to such initial price
applicability year;
shall not be subject to the negotiation process under section
1194 with respect to such negotiation period and shall continue
to be considered a selected drug under this part with respect to
the number of negotiation-eligible drugs published on the list
under subsection (a) with respect to such initial price
applicability year.
``(d) <<NOTE: Determinations. Time periods.>> Negotiation-Eligible
Drug.--
``(1) <<NOTE: Definition.>> In general.--For purposes of
this part, subject to paragraph (2), the term `negotiation-
eligible drug' means, with respect to the selected drug
publication date with respect to an initial price applicability
year, a qualifying single source drug, as defined in subsection
(e), that is described in either of the following subparagraphs
(or, with respect to the initial price applicability year 2026
or 2027, that is described in subparagraph (A)):
``(A) Part d high spend drugs.--The qualifying
single source drug is, determined in accordance with
subsection (e)(2), among the 50 qualifying single source
drugs with the highest total expenditures under part D
of title XVIII, as determined by the Secretary in
accordance with paragraph (3), during the most recent
12-month period for which data are available prior to
such selected drug publication date (but ending no later
than October 31 of the year prior to the year of such
drug publication date).
[[Page 136 STAT. 1838]]
``(B) Part b high spend drugs.--The qualifying
single source drug is, determined in accordance with
subsection (e)(2), among the 50 qualifying single source
drugs with the highest total expenditures under part B
of title XVIII, as determined by the Secretary in
accordance with paragraph (3), during such most recent
12-month period, as described in subparagraph (A).
``(2) Exception for small biotech drugs.--
``(A) In general.--Subject to subparagraph (C), the
term `negotiation-eligible drug' shall not include, with
respect to the initial price applicability years 2026,
2027, and 2028, a qualifying single source drug that
meets either of the following:
``(i) Part d drugs.--The total expenditures
for the qualifying single source drug under part D
of title XVIII, as determined by the Secretary in
accordance with paragraph (3)(B), during 2021--
``(I) are equal to or less than 1
percent of the total expenditures under
such part D, as so determined, for all
covered part D drugs (as defined in
section 1860D-2(e)) during such year;
and
``(II) are equal to at least 80
percent of the total expenditures under
such part D, as so determined, for all
covered part D drugs for which the
manufacturer of the drug has an
agreement in effect under section 1860D-
14A during such year.
``(ii) Part b drugs.--The total expenditures
for the qualifying single source drug under part B
of title XVIII, as determined by the Secretary in
accordance with paragraph (3)(B), during 2021--
``(I) are equal to or less than 1
percent of the total expenditures under
such part B, as so determined, for all
qualifying single source drugs for which
payment may be made under such part B
during such year; and
``(II) are equal to at least 80
percent of the total expenditures under
such part B, as so determined, for all
qualifying single source drugs of the
manufacturer for which payment may be
made under such part B during such year.
``(B) Clarifications relating to manufacturers.--
``(i) Aggregation rule.--All persons treated
as a single employer under subsection (a) or (b)
of section 52 of the Internal Revenue Code of 1986
shall be treated as one manufacturer for purposes
of this paragraph.
``(ii) <<NOTE: Effective dates.>>
Limitation.--A drug shall not be considered to be
a qualifying single source drug described in
clause (i) or (ii) of subparagraph (A) if the
manufacturer of such drug is acquired after 2021
by another manufacturer that does not meet the
definition of a specified manufacturer under
section 1860D-14C(g)(4)(B)(ii), effective at the
beginning of the plan year immediately following
such acquisition or, in the case of an acquisition
before 2025, effective January 1, 2025.
[[Page 136 STAT. 1839]]
``(C) Drugs not included as small biotech drugs.--A
new formulation, such as an extended release
formulation, of a qualifying single source drug shall
not be considered a qualifying single source drug
described in subparagraph (A).
``(3) Clarifications and determinations.--
``(A) Previously selected drugs and small biotech
drugs excluded.--In applying subparagraphs (A) and (B)
of paragraph (1), the Secretary shall not consider or
count--
``(i) drugs that are already selected drugs;
and
``(ii) for initial price applicability years
2026, 2027, and 2028, qualifying single source
drugs described in paragraph (2)(A).
``(B) Use of data.--In determining whether a
qualifying single source drug satisfies any of the
criteria described in paragraph (1) or (2), the
Secretary shall use data that is aggregated across
dosage forms and strengths of the drug, including new
formulations of the drug, such as an extended release
formulation, and not based on the specific formulation
or package size or package type of the drug.
``(e) Qualifying Single Source Drug.--
``(1) <<NOTE: Definition.>> In general.--For purposes of
this part, the term `qualifying single source drug' means, with
respect to an initial price applicability year, subject to
paragraphs (2) and (3), a covered part D drug (as defined in
section 1860D-2(e)) that is described in any of the following or
a drug or biological product for which payment may be made under
part B of title XVIII that is described in any of the following:
``(A) <<NOTE: Time periods.>> Drug products.--A
drug--
``(i) that is approved under section 505(c) of
the Federal Food, Drug, and Cosmetic Act and is
marketed pursuant to such approval;
``(ii) for which, as of the selected drug
publication date with respect to such initial
price applicability year, at least 7 years will
have elapsed since the date of such approval; and
``(iii) that is not the listed drug for any
drug that is approved and marketed under section
505(j) of such Act.
``(B) Biological products.--A biological product--
``(i) that is licensed under section 351(a) of
the Public Health Service Act and is marketed
under section 351 of such Act;
``(ii) for which, as of the selected drug
publication date with respect to such initial
price applicability year, at least 11 years will
have elapsed since the date of such licensure; and
``(iii) that is not the reference product for
any biological product that is licensed and
marketed under section 351(k) of such Act.
``(2) Treatment of authorized generic drugs.--
``(A) In general.--In the case of a qualifying
single source drug described in subparagraph (A) or (B)
of paragraph (1) that is the listed drug (as such term
is used in section 505(j) of the Federal Food, Drug, and
Cosmetic Act) or a product described in clause (ii) of
subparagraph
[[Page 136 STAT. 1840]]
(B), with respect to an authorized generic drug, in
applying the provisions of this part, such authorized
generic drug and such listed drug or such product shall
be treated as the same qualifying single source drug.
``(B) Authorized generic drug defined.--For purposes
of this paragraph, the term `authorized generic drug'
means--
``(i) in the case of a drug, an authorized
generic drug (as such term is defined in section
505(t)(3) of the Federal Food, Drug, and Cosmetic
Act); and
``(ii) in the case of a biological product, a
product that--
``(I) has been licensed under
section 351(a) of such Act; and
``(II) is marketed, sold, or
distributed directly or indirectly to
retail class of trade under a different
labeling, packaging (other than
repackaging as the reference product in
blister packs, unit doses, or similar
packaging for use in institutions),
product code, labeler code, trade name,
or trade mark than the reference
product.
``(3) Exclusions.--In this part, the term `qualifying single
source drug' does not include any of the following:
``(A) Certain orphan drugs.--A drug that is
designated as a drug for only one rare disease or
condition under section 526 of the Federal Food, Drug,
and Cosmetic Act and for which the only approved
indication (or indications) is for such disease or
condition.
``(B) <<NOTE: Time periods. Determination.>> Low
spend medicare drugs.--A drug or biological product with
respect to which the total expenditures under parts B
and D of title XVIII, as determined by the Secretary in
accordance with subsection (d)(3)(B)--
``(i) with respect to initial price
applicability year 2026, is less than, during the
period beginning on June 1, 2022, and ending on
May 31, 2023, $200,000,000;
``(ii) with respect to initial price
applicability year 2027, is less than, during the
most recent 12-month period applicable under
subparagraphs (A) and (B) of subsection (d)(1) for
such year, the dollar amount specified in clause
(i) increased by the annual percentage increase in
the consumer price index for all urban consumers
(all items; United States city average) for the
period beginning on June 1, 2023, and ending on
September 30, 2024; or
``(iii) with respect to a subsequent initial
price applicability year, is less than, during the
most recent 12-month period applicable under
subparagraphs (A) and (B) of subsection (d)(1) for
such year, the dollar amount specified in this
subparagraph for the previous initial price
applicability year increased by the annual
percentage increase in such consumer price index
for the 12-month period ending on September 30 of
the year prior to the year of the selected drug
publication date with respect to such subsequent
initial price applicability year.
[[Page 136 STAT. 1841]]
``(C) Plasma-derived products.--A biological product
that is derived from human whole blood or plasma.
``SEC. 1193. <<NOTE: 42 USC 1320f-2.>> MANUFACTURER AGREEMENTS.
``(a) <<NOTE: Deadline.>> In General.--For purposes of section
1191(a)(2), the Secretary shall enter into agreements with manufacturers
of selected drugs with respect to a price applicability period, by not
later than February 28 following the selected drug publication date with
respect to such selected drug, under which--
``(1) <<NOTE: Determination. Deadline.>> during the
negotiation period for the initial price applicability year for
the selected drug, the Secretary and the manufacturer, in
accordance with section 1194, negotiate to determine (and, by
not later than the last date of such period, agree to) a maximum
fair price for such selected drug of the manufacturer in order
for the manufacturer to provide access to such price--
``(A) to maximum fair price eligible individuals who
with respect to such drug are described in subparagraph
(A) of section 1191(c)(2) and are dispensed such drug
(and to pharmacies, mail order services, and other
dispensers, with respect to such maximum fair price
eligible individuals who are dispensed such drugs)
during, subject to paragraph (2), the price
applicability period; and
``(B) to hospitals, physicians, and other providers
of services and suppliers with respect to maximum fair
price eligible individuals who with respect to such drug
are described in subparagraph (B) of such section and
are furnished or administered such drug during, subject
to paragraph (2), the price applicability period;
``(2) <<NOTE: Deadline.>> the Secretary and the
manufacturer shall, in accordance with section 1194, renegotiate
(and, by not later than the last date of the period of
renegotiation, agree to) the maximum fair price for such drug,
in order for the manufacturer to provide access to such maximum
fair price (as so renegotiated)--
``(A) to maximum fair price eligible individuals who
with respect to such drug are described in subparagraph
(A) of section 1191(c)(2) and are dispensed such drug
(and to pharmacies, mail order services, and other
dispensers, with respect to such maximum fair price
eligible individuals who are dispensed such drugs)
during any year during the price applicability period
(beginning after such renegotiation) with respect to
such selected drug; and
``(B) to hospitals, physicians, and other providers
of services and suppliers with respect to maximum fair
price eligible individuals who with respect to such drug
are described in subparagraph (B) of such section and
are furnished or administered such drug during any year
described in subparagraph (A);
``(3) subject to subsection (d), access to the maximum fair
price (including as renegotiated pursuant to paragraph (2)),
with respect to such a selected drug, shall be provided by the
manufacturer to--
``(A) maximum fair price eligible individuals, who
with respect to such drug are described in subparagraph
(A) of section 1191(c)(2), at the pharmacy, mail order
service, or other dispenser at the point-of-sale of such
drug (and
[[Page 136 STAT. 1842]]
shall be provided by the manufacturer to the pharmacy,
mail order service, or other dispenser, with respect to
such maximum fair price eligible individuals who are
dispensed such drugs), as described in paragraph (1)(A)
or (2)(A), as applicable; and
``(B) hospitals, physicians, and other providers of
services and suppliers with respect to maximum fair
price eligible individuals who with respect to such drug
are described in subparagraph (B) of such section and
are furnished or administered such drug, as described in
paragraph (1)(B) or (2)(B), as applicable;
``(4) the manufacturer submits to the Secretary, in a form
and manner specified by the Secretary, for the negotiation
period for the price applicability period (and, if applicable,
before any period of renegotiation pursuant to section 1194(f))
with respect to such drug--
``(A) information on the non-Federal average
manufacturer price (as defined in section 8126(h)(5) of
title 38, United States Code) for the drug for the
applicable year or period; and
``(B) <<NOTE: Requirement.>> information that the
Secretary requires to carry out the negotiation (or
renegotiation process) under this part; and
``(5) <<NOTE: Compliance. Requirements. Determination.>>
the manufacturer complies with requirements determined by the
Secretary to be necessary for purposes of administering the
program and monitoring compliance with the program.
``(b) Agreement in Effect Until Drug Is No Longer a Selected Drug.--
An agreement entered into under this section shall be effective, with
respect to a selected drug, until such drug is no longer considered a
selected drug under section 1192(c).
``(c) <<NOTE: Determination.>> Confidentiality of Information.--
Information submitted to the Secretary under this part by a manufacturer
of a selected drug that is proprietary information of such manufacturer
(as determined by the Secretary) shall be used only by the Secretary or
disclosed to and used by the Comptroller General of the United States
for purposes of carrying out this part.
``(d) Nonduplication With 340B Ceiling Price.--Under an agreement
entered into under this section, the manufacturer of a selected drug--
``(1) shall not be required to provide access to the maximum
fair price under subsection (a)(3), with respect to such
selected drug and maximum fair price eligible individuals who
are eligible to be furnished, administered, or dispensed such
selected drug at a covered entity described in section
340B(a)(4) of the Public Health Service Act, to such covered
entity if such selected drug is subject to an agreement
described in section 340B(a)(1) of such Act and the ceiling
price (defined in section 340B(a)(1) of such Act) is lower than
the maximum fair price for such selected drug; and
``(2) <<NOTE: Requirement.>> shall be required to provide
access to the maximum fair price to such covered entity with
respect to maximum fair price eligible individuals who are
eligible to be furnished, administered, or dispensed such
selected drug at such entity at such ceiling price in a
nonduplicated amount to the ceiling price if such maximum fair
price is below the ceiling price for such selected drug.
[[Page 136 STAT. 1843]]
``SEC. 1194. <<NOTE: 42 USC 1320f-3.>> NEGOTIATION AND
RENEGOTIATION PROCESS.
``(a) In General.--For purposes of this part, under an agreement
under section 1193 between the Secretary and a manufacturer of a
selected drug (or selected drugs), with respect to the period for which
such agreement is in effect and in accordance with subsections (b), (c),
and (d), the Secretary and the manufacturer--
``(1) shall during the negotiation period with respect to
such drug, in accordance with this section, negotiate a maximum
fair price for such drug for the purpose described in section
1193(a)(1); and
``(2) renegotiate, in accordance with the process specified
pursuant to subsection (f), such maximum fair price for such
drug for the purpose described in section 1193(a)(2) if such
drug is a renegotiation-eligible drug under such subsection.
``(b) Negotiation Process Requirements.--
``(1) Methodology and process.--The Secretary shall develop
and use a consistent methodology and process, in accordance with
paragraph (2), for negotiations under subsection (a) that aims
to achieve the lowest maximum fair price for each selected drug.
``(2) <<NOTE: Applicability. Deadlines.>> Specific elements
of negotiation process.--As part of the negotiation process
under this section, with respect to a selected drug and the
negotiation period with respect to the initial price
applicability year with respect to such drug, the following
shall apply:
``(A) Submission of information.--Not later than
March 1 of the year of the selected drug publication
date, with respect to the selected drug, the
manufacturer of the drug shall submit to the Secretary,
in accordance with section 1193(a)(4), the information
described in such section.
``(B) <<NOTE: Proposal.>> Initial offer by
secretary.--Not later than the June 1 following the
selected drug publication date, the Secretary shall
provide the manufacturer of the selected drug with a
written initial offer that contains the Secretary's
proposal for the maximum fair price of the drug and a
concise justification based on the factors described in
section 1194(e) that were used in developing such offer.
``(C) <<NOTE: Proposal.>> Response to initial
offer.--
``(i) In general.--Not later than 30 days
after the date of receipt of an initial offer
under subparagraph (B), the manufacturer shall
either accept such offer or propose a counteroffer
to such offer.
``(ii) Counteroffer requirements.--If a
manufacturer proposes a counteroffer, such
counteroffer--
``(I) shall be in writing; and
``(II) shall be justified based on
the factors described in subsection (e).
``(D) Response to counteroffer.--After receiving a
counteroffer under subparagraph (C), the Secretary shall
respond in writing to such counteroffer.
``(E) Deadline.--All negotiations between the
Secretary and the manufacturer of the selected drug
shall end prior to the first day of November following
the selected drug publication date, with respect to the
initial price applicability year.
[[Page 136 STAT. 1844]]
``(F) Limitations on offer amount.--In negotiating
the maximum fair price of a selected drug, with respect
to the initial price applicability year for the selected
drug, and, as applicable, in renegotiating the maximum
fair price for such drug, with respect to a subsequent
year during the price applicability period for such
drug, the Secretary shall not offer (or agree to a
counteroffer for) a maximum fair price for the selected
drug that--
``(i) exceeds the ceiling determined under
subsection (c) for the selected drug and year; or
``(ii) as applicable, is less than the floor
determined under subsection (d) for the selected
drug and year.
``(c) Ceiling for Maximum Fair Price.--
``(1) General ceiling.--
``(A) In general.--The maximum fair price negotiated
under this section for a selected drug, with respect to
the first initial price applicability year of the price
applicability period with respect to such drug, shall
not exceed the lower of the amount under subparagraph
(B) or the amount under subparagraph (C).
``(B) Subparagraph (B) amount.--An amount equal to
the following:
``(i) Covered part d drug.--In the case of a
covered part D drug (as defined in section 1860D-
2(e)), the sum of the plan specific enrollment
weighted amounts for each prescription drug plan
or MA-PD plan (as determined under paragraph (2)).
``(ii) Part b drug or biological.--In the case
of a drug or biological product for which payment
may be made under part B of title XVIII, the
payment amount under section 1847A(b)(4) for the
drug or biological product for the year prior to
the year of the selected drug publication date
with respect to the initial price applicability
year for the drug or biological product.
``(C) Subparagraph (C) amount.--An amount equal to
the applicable percent described in paragraph (3), with
respect to such drug, of the following:
``(i) Initial price applicability year 2026.--
In the case of a selected drug with respect to
which such initial price applicability year is
2026, the average non-Federal average manufacturer
price for such drug for 2021 (or, in the case that
there is not an average non-Federal average
manufacturer price available for such drug for
2021, for the first full year following the market
entry for such drug), increased by the percentage
increase in the consumer price index for all urban
consumers (all items; United States city average)
from September 2021 (or December of such first
full year following the market entry), as
applicable, to September of the year prior to the
year of the selected drug publication date with
respect to such initial price applicability year.
``(ii) Initial price applicability year 2027
and subsequent years.--In the case of a selected
drug with respect to which such initial price
applicability year is 2027 or a subsequent year,
the lower of--
[[Page 136 STAT. 1845]]
``(I) the average non-Federal
average manufacturer price for such drug
for 2021 (or, in the case that there is
not an average non-Federal average
manufacturer price available for such
drug for 2021, for the first full year
following the market entry for such
drug), increased by the percentage
increase in the consumer price index for
all urban consumers (all items; United
States city average) from September 2021
(or December of such first full year
following the market entry), as
applicable, to September of the year
prior to the year of the selected drug
publication date with respect to such
initial price applicability year; or
``(II) the average non-Federal
average manufacturer price for such drug
for the year prior to the selected drug
publication date with respect to such
initial price applicability year.
``(2) Plan specific enrollment weighted amount.--For
purposes of paragraph (1)(B)(i), the plan specific enrollment
weighted amount for a prescription drug plan or an MA-PD plan
with respect to a covered Part D drug is an amount equal to the
product of--
``(A) the negotiated price of the drug under such
plan under part D of title XVIII, net of all price
concessions received by such plan or pharmacy benefit
managers on behalf of such plan, for the most recent
year for which data is available; and
``(B) a fraction--
``(i) the numerator of which is the total
number of individuals enrolled in such plan in
such year; and
``(ii) the denominator of which is the total
number of individuals enrolled in a prescription
drug plan or an MA-PD plan in such year.
``(3) Applicable percent described.--For purposes of this
subsection, the applicable percent described in this paragraph
is the following:
``(A) Short-monopoly drugs and vaccines.--With
respect to a selected drug (other than an extended-
monopoly drug and a long-monopoly drug), 75 percent.
``(B) Extended-monopoly drugs.--With respect to an
extended-monopoly drug, 65 percent.
``(C) Long-monopoly drugs.--With respect to a long-
monopoly drug, 40 percent.
``(4) Extended-monopoly drug defined.--
``(A) <<NOTE: Time period.>> In general.--In this
part, subject to subparagraph (B), the term `extended-
monopoly drug' means, with respect to an initial price
applicability year, a selected drug for which at least
12 years, but fewer than 16 years, have elapsed since
the date of approval of such drug under section 505(c)
of the Federal Food, Drug, and Cosmetic Act or since the
date of licensure of such drug under section 351(a) of
the Public Health Service Act, as applicable.
``(B) Exclusions.--The term `extended-monopoly drug'
shall not include any of the following:
[[Page 136 STAT. 1846]]
``(i) A vaccine that is licensed under section
351 of the Public Health Service Act and marketed
pursuant to such section.
``(ii) A selected drug for which a
manufacturer had an agreement under this part with
the Secretary with respect to an initial price
applicability year that is before 2030.
``(C) Clarification.--Nothing in subparagraph
(B)(ii) shall limit the transition of a selected drug
described in paragraph (3)(A) to a long-monopoly drug if
the selected drug meets the definition of a long-
monopoly drug.
``(5) Long-monopoly drug defined.--
``(A) <<NOTE: Time period.>> In general.--In this
part, subject to subparagraph (B), the term `long-
monopoly drug' means, with respect to an initial price
applicability year, a selected drug for which at least
16 years have elapsed since the date of approval of such
drug under section 505(c) of the Federal Food, Drug, and
Cosmetic Act or since the date of licensure of such drug
under section 351(a) of the Public Health Service Act,
as applicable.
``(B) Exclusion.--The term `long-monopoly drug'
shall not include a vaccine that is licensed under
section 351 of the Public Health Service Act and
marketed pursuant to such section.
``(6) <<NOTE: Time period.>> Average non-federal average
manufacturer price.--In this part, the term `average non-Federal
average manufacturer price' means the average of the non-Federal
average manufacturer price (as defined in section 8126(h)(5) of
title 38, United States Code) for the 4 calendar quarters of the
year involved.
``(d) <<NOTE: Time periods.>> Temporary Floor for Small Biotech
Drugs.--In the case of a selected drug that is a qualifying single
source drug described in section 1192(d)(2) and with respect to which
the first initial price applicability year of the price applicability
period with respect to such drug is 2029 or 2030, the maximum fair price
negotiated under this section for such drug for such initial price
applicability year may not be less than 66 percent of the average non-
Federal average manufacturer price for such drug (as defined in
subsection (c)(6)) for 2021 (or, in the case that there is not an
average non-Federal average manufacturer price available for such drug
for 2021, for the first full year following the market entry for such
drug), increased by the percentage increase in the consumer price index
for all urban consumers (all items; United States city average) from
September 2021 (or December of such first full year following the market
entry), as applicable, to September of the year prior to the selected
drug publication date with respect to the initial price applicability
year.
``(e) Factors.--For purposes of negotiating the maximum fair price
of a selected drug under this part with the manufacturer of the drug,
the Secretary shall consider the following factors, as applicable to the
drug, as the basis for determining the offers and counteroffers under
subsection (b) for the drug:
``(1) Manufacturer-specific data.--The following data, with
respect to such selected drug, as submitted by the manufacturer:
[[Page 136 STAT. 1847]]
``(A) Research and development costs of the
manufacturer for the drug and the extent to which the
manufacturer has recouped research and development
costs.
``(B) Current unit costs of production and
distribution of the drug.
``(C) Prior Federal financial support for novel
therapeutic discovery and development with respect to
the drug.
``(D) Data on pending and approved patent
applications, exclusivities recognized by the Food and
Drug Administration, and applications and approvals
under section 505(c) of the Federal Food, Drug, and
Cosmetic Act or section 351(a) of the Public Health
Service Act for the drug.
``(E) Market data and revenue and sales volume data
for the drug in the United States.
``(2) Evidence about alternative treatments.--The following
evidence, as available, with respect to such selected drug and
therapeutic alternatives to such drug:
``(A) The extent to which such drug represents a
therapeutic advance as compared to existing therapeutic
alternatives and the costs of such existing therapeutic
alternatives.
``(B) Prescribing information approved by the Food
and Drug Administration for such drug and therapeutic
alternatives to such drug.
``(C) Comparative effectiveness of such drug and
therapeutic alternatives to such drug, taking into
consideration the effects of such drug and therapeutic
alternatives to such drug on specific populations, such
as individuals with disabilities, the elderly, the
terminally ill, children, and other patient populations.
``(D) The extent to which such drug and therapeutic
alternatives to such drug address unmet medical needs
for a condition for which treatment or diagnosis is not
addressed adequately by available therapy.
In using evidence described in subparagraph (C), the Secretary
shall not use evidence from comparative clinical effectiveness
research in a manner that treats extending the life of an
elderly, disabled, or terminally ill individual as of lower
value than extending the life of an individual who is younger,
nondisabled, or not terminally ill.
``(f) Renegotiation Process.--
``(1) <<NOTE: Effective date.>> In general.--In the case of
a renegotiation-eligible drug (as defined in paragraph (2)) that
is selected under paragraph (3), the Secretary shall provide for
a process of renegotiation (for years (beginning with 2028)
during the price applicability period, with respect to such
drug) of the maximum fair price for such drug consistent with
paragraph (4).
``(2) Renegotiation-eligible drug defined.--In this section,
the term `renegotiation-eligible drug' means a selected drug
that is any of the following:
``(A) Addition of new indication.--A selected drug
for which a new indication is added to the drug.
``(B) Change of status to an extended-monopoly
drug.--A selected drug that--
``(i) is not an extended-monopoly or a long-
monopoly drug; and
[[Page 136 STAT. 1848]]
``(ii) for which there is a change in status
to that of an extended-monopoly drug.
``(C) Change of status to a long-monopoly drug.--A
selected drug that--
``(i) is not a long-monopoly drug; and
``(ii) for which there is a change in status
to that of a long-monopoly drug.
``(D) <<NOTE: Determination.>> Material changes.--A
selected drug for which the Secretary determines there
has been a material change of any of the factors
described in paragraph (1) or (2) of subsection (e).
``(3) <<NOTE: Effective date.>> Selection of drugs for
renegotiation.--For each year (beginning with 2028), the
Secretary shall select among renegotiation-eligible drugs for
renegotiation as follows:
``(A) All extended-monopoly negotiation-eligible
drugs.--The Secretary shall select all renegotiation-
eligible drugs described in paragraph (2)(B).
``(B) All long-monopoly negotiation-eligible
drugs.--The Secretary shall select all renegotiation-
eligible drugs described in paragraph (2)(C).
``(C) Remaining drugs.--Among the remaining
renegotiation-eligible drugs described in subparagraphs
(A) and (D) of paragraph (2), the Secretary shall select
renegotiation-eligible drugs for which the Secretary
expects renegotiation is likely to result in a
significant change in the maximum fair price otherwise
negotiated.
``(4) Renegotiation process.--
``(A) In general.--The Secretary shall specify the
process for renegotiation of maximum fair prices with
the manufacturer of a renegotiation-eligible drug
selected for renegotiation under this subsection.
``(B) Consistent with negotiation process.--The
process specified under subparagraph (A) shall, to the
extent practicable, be consistent with the methodology
and process established under subsection (b) and in
accordance with subsections (c), (d), and (e), and for
purposes of applying subsections (c)(1)(A) and (d), the
reference to the first initial price applicability year
of the price applicability period with respect to such
drug shall be treated as the first initial price
applicability year of such period for which the maximum
fair price established pursuant to such renegotiation
applies, including for applying subsection (c)(3)(B) in
the case of renegotiation-eligible drugs described in
paragraph (3)(A) of this subsection and subsection
(c)(3)(C) in the case of renegotiation-eligible drugs
described in paragraph (3)(B) of this subsection.
``(5) Clarification.--A renegotiation-eligible drug for
which the Secretary makes a determination described in section
1192(c)(1) before or during the period of renegotiation shall
not be subject to the renegotiation process under this section.
``(g) <<NOTE: Effective date.>> Clarification.--The maximum fair
price for a selected drug described in subparagraph (A) or (B) of
paragraph (1) shall take effect no later than the first day of the first
calendar quarter that begins after the date described in subparagraph
(A) or (B), as applicable.
[[Page 136 STAT. 1849]]
``SEC. 1195. <<NOTE: Deadlines. Time periods. 42 USC 1320f-4.>>
PUBLICATION OF MAXIMUM FAIR PRICES.
``(a) In General.--With respect to an initial price applicability
year and a selected drug with respect to such year--
``(1) not later than November 30 of the year that is 2 years
prior to such initial price applicability year, the Secretary
shall publish the maximum fair price for such drug negotiated
with the manufacturer of such drug under this part; and
``(2) not later than March 1 of the year prior to such
initial price applicability year, the Secretary shall publish,
subject to section 1193(c), the explanation for the maximum fair
price with respect to the factors as applied under section
1194(e) for such drug described in paragraph (1).
``(b) Updates.--
``(1) Subsequent year maximum fair prices.--For a selected
drug, for each year subsequent to the first initial price
applicability year of the price applicability period with
respect to such drug, with respect to which an agreement for
such drug is in effect under section 1193, not later than
November 30 of the year that is 2 years prior to such subsequent
year, the Secretary shall publish the maximum fair price
applicable to such drug and year, which shall be--
``(A) subject to subparagraph (B), the amount equal
to the maximum fair price published for such drug for
the previous year, increased by the annual percentage
increase in the consumer price index for all urban
consumers (all items; United States city average) for
the 12-month period ending with the July immediately
preceding such November 30; or
``(B) in the case the maximum fair price for such
drug was renegotiated, for the first year for which such
price as so renegotiated applies, such renegotiated
maximum fair price.
``(2) <<NOTE: Determination.>> Prices negotiated after
deadline.--In the case of a selected drug with respect to an
initial price applicability year for which the maximum fair
price is determined under this part after the date of
publication under this section, the Secretary shall publish such
maximum fair price by not later than 30 days after the date such
maximum price is so determined.
``SEC. 1196. <<NOTE: 42 USC 1320f-5.>> ADMINISTRATIVE DUTIES AND
COMPLIANCE MONITORING.
``(a) Administrative Duties.--For purposes of section 1191(a)(4),
the administrative duties described in this section are the following:
``(1) The establishment of procedures to ensure that the
maximum fair price for a selected drug is applied before--
``(A) any coverage or financial assistance under
other health benefit plans or programs that provide
coverage or financial assistance for the purchase or
provision of prescription drug coverage on behalf of
maximum fair price eligible individuals; and
``(B) any other discounts.
``(2) The establishment of procedures to compute and apply
the maximum fair price across different strengths and dosage
forms of a selected drug and not based on the specific
formulation or package size or package type of such drug.
[[Page 136 STAT. 1850]]
``(3) The establishment of procedures to carry out the
provisions of this part, as applicable, with respect to--
``(A) maximum fair price eligible individuals who
are enrolled in a prescription drug plan under part D of
title XVIII or an MA-PD plan under part C of such title;
and
``(B) maximum fair price eligible individuals who
are enrolled under part B of such title, including who
are enrolled in an MA plan under part C of such title.
``(4) The establishment of a negotiation process and
renegotiation process in accordance with section 1194.
``(5) The establishment of a process for manufacturers to
submit information described in section 1194(b)(2)(A).
``(6) The sharing with the Secretary of the Treasury of such
information as is necessary to determine the tax imposed by
section 5000D of the Internal Revenue Code of 1986, including
the application of such tax to a manufacturer, producer, or
importer or the determination of any date described in section
5000D(c)(1) of such Code. For purposes of the preceding
sentence, such information shall include--
``(A) the date on which the Secretary receives
notification of any termination of an agreement under
the Medicare coverage gap discount program under section
1860D-14A and the date on which any subsequent agreement
under such program is entered into;
``(B) the date on which the Secretary receives
notification of any termination of an agreement under
the manufacturer discount program under section 1860D-
14C and the date on which any subsequent agreement under
such program is entered into; and
``(C) the date on which the Secretary receives
notification of any termination of a rebate agreement
described in section 1927(b) and the date on which any
subsequent rebate agreement described in such section is
entered into.
``(7) The establishment of procedures for purposes of
applying section 1192(d)(2)(B).
``(b) Compliance Monitoring.--The Secretary shall monitor compliance
by a manufacturer with the terms of an agreement under section 1193 and
establish a mechanism through which violations of such terms shall be
reported.
``SEC. 1197. <<NOTE: 42 USC 1320f-6.>> CIVIL MONETARY PENALTIES.
``(a) Violations Relating to Offering of Maximum Fair Price.--Any
manufacturer of a selected drug that has entered into an agreement under
section 1193, with respect to a year during the price applicability
period with respect to such drug, that does not provide access to a
price that is equal to or less than the maximum fair price for such drug
for such year--
``(1) to a maximum fair price eligible individual who with
respect to such drug is described in subparagraph (A) of section
1191(c)(2) and who is dispensed such drug during such year (and
to pharmacies, mail order services, and other dispensers, with
respect to such maximum fair price eligible individuals who are
dispensed such drugs); or
``(2) to a hospital, physician, or other provider of
services or supplier with respect to maximum fair price eligible
individuals who with respect to such drug is described in
subparagraph (B) of such section and is furnished or
administered such drug
[[Page 136 STAT. 1851]]
by such hospital, physician, or provider or supplier during such
year;
shall be subject to a civil monetary penalty equal to ten times the
amount equal to the product of the number of units of such drug so
furnished, dispensed, or administered during such year and the
difference between the price for such drug made available for such year
by such manufacturer with respect to such individual or hospital,
physician, provider of services, or supplier and the maximum fair price
for such drug for such year.
``(b) Violations of Certain Terms of Agreement.--Any manufacturer of
a selected drug that has entered into an agreement under section 1193,
with respect to a year during the price applicability period with
respect to such drug, that is in violation of a requirement imposed
pursuant to section 1193(a)(5), including the requirement to submit
information pursuant to section 1193(a)(4), shall be subject to a civil
monetary penalty equal to $1,000,000 for each day of such violation.
``(c) False Information.--Any manufacturer that knowingly provides
false information pursuant to section 1196(a)(7) shall be subject to a
civil monetary penalty equal to $100,000,000 for each item of such false
information.
``(d) Application.--The provisions of section 1128A (other than
subsections (a) and (b)) shall apply to a civil monetary penalty under
this section in the same manner as such provisions apply to a penalty or
proceeding under section 1128A(a).
``SEC. 1198. <<NOTE: 42 USC 1320f-7.>> LIMITATION ON
ADMINISTRATIVE AND JUDICIAL REVIEW.
``There shall be no administrative or judicial review of any of the
following:
``(1) The determination of a unit, with respect to a drug or
biological product, pursuant to section 1191(c)(6).
``(2) The selection of drugs under section 1192(b), the
determination of negotiation-eligible drugs under section
1192(d), and the determination of qualifying single source drugs
under section 1192(e).
``(3) The determination of a maximum fair price under
subsection (b) or (f) of section 1194.
``(4) The determination of renegotiation-eligible drugs
under section 1194(f)(2) and the selection of renegotiation-
eligible drugs under section 1194(f)(3).''.
(b) Application of Maximum Fair Prices and Conforming Amendments.--
(1) Under medicare.--
(A) Application to payments under part b.--Section
1847A(b)(1)(B) of the Social Security Act (42 U.S.C.
1395w-3a(b)(1)(B)) is amended by inserting ``or in the
case of such a drug or biological product that is a
selected drug (as referred to in section 1192(c)), with
respect to a price applicability period (as defined in
section 1191(b)(2)), 106 percent of the maximum fair
price (as defined in section 1191(c)(3)) applicable for
such drug and a year during such period'' after
``paragraph (4)''.
(B) Application under ma of cost-sharing for part b
drugs based off of negotiated price.--Section
1852(a)(1)(B)(iv) of the Social Security Act (42 U.S.C.
1395w-22(a)(1)(B)(iv)) is amended--
[[Page 136 STAT. 1852]]
(i) by redesignating subclause (VII) as
subclause (VIII); and
(ii) by inserting after subclause (VI) the
following subclause:
``(VII) A drug or biological product
that is a selected drug (as referred to
in section 1192(c)).''.
(C) Exception to part D non-interference.--Section
1860D-11(i) of the Social Security Act (42 U.S.C. 1395w-
111(i)) is amended--
(i) in paragraph (1), by striking ``and'' at
the end;
(ii) in paragraph (2), by striking ``or
institute a price structure for the reimbursement
of covered part D drugs.'' and inserting ``,
except as provided under section 1860D-4(b)(3)(l);
and''; and
(iii) by adding at the end the following new
paragraph:
``(3) may not institute a price structure for the
reimbursement of covered part D drugs, except as provided under
part E of title XI.''.
(D) Application as negotiated price under part d.--
Section 1860D-2(d)(1) of the Social Security Act (42
U.S.C. 1395w-102(d)(1)) is amended--
(i) in subparagraph (B), by inserting ``,
subject to subparagraph (D),'' after ``negotiated
prices''; and
(ii) by adding at the end the following new
subparagraph:
``(D) Application of maximum fair price for selected
drugs.--In applying this section, in the case of a
covered part D drug that is a selected drug (as referred
to in section 1192(c)), with respect to a price
applicability period (as defined in section 1191(b)(2)),
the negotiated prices used for payment (as described in
this subsection) shall be no greater than the maximum
fair price (as defined in section 1191(c)(3)) for such
drug and for each year during such period plus any
dispensing fees for such drug.''.
(E) Coverage of selected drugs.--Section 1860D-
4(b)(3) of the Social Security Act (42 U.S.C. 1395w-
104(b)(3)) is amended by adding at the end the following
new subparagraph:
``(I) Required inclusion of selected drugs.--
``(i) <<NOTE: Time periods.>> In general.--
For 2026 and each subsequent year, the PDP sponsor
offering a prescription drug plan shall include
each covered part D drug that is a selected drug
under section 1192 for which a maximum fair price
(as defined in section 1191(c)(3)) is in effect
with respect to the year.
``(ii) Clarification.--Nothing in clause (i)
shall be construed as prohibiting a PDP sponsor
from removing such a selected drug from a
formulary if such removal would be permitted under
section 423.120(b)(5)(iv) of title 42, Code of
Federal Regulations (or any successor
regulation).''.
(F) Information from prescription drug plans and ma-
pd plans required.--
(i) Prescription drug plans.--Section 1860D-
12(b) of the Social Security Act (42 U.S.C. 1395w-
[[Page 136 STAT. 1853]]
112(b)) is amended by adding at the end the
following new paragraph:
``(8) Provision of information related to maximum fair
prices. <<NOTE: Contracts. Requirement.>> --Each contract
entered into with a PDP sponsor under this part with respect to
a prescription drug plan offered by such sponsor shall require
the sponsor to provide information to the Secretary as requested
by the Secretary for purposes of carrying out section 1194.''.
(ii) MA-PD plans.--Section 1857(f)(3) of the
Social Security Act (42 U.S.C. 1395w-27(f)(3)) is
amended by adding at the end the following new
subparagraph:
``(E) Provision of information related to maximum
fair prices.--Section 1860D-12(b)(8).''.
(G) Conditions for coverage.--
(i) Medicare part d.--Section 1860D-43(c) of
the Social Security Act (42 U.S.C. 1395w-153(c))
is amended--
(I) by redesignating paragraphs (1)
and (2) as subparagraphs (A) and (B),
respectively;
(II) by striking ``Agreements.--
Subsection'' and inserting the
following: ``Agreements.--
``(1) In general.--Subject to paragraph (2), subsection'';
and
(III) by adding at the end the
following new paragraph:
``(2) Exception.--Paragraph (1)(A) shall not apply to a
covered part D drug of a manufacturer for any period described
in section 5000D(c)(1) of the Internal Revenue Code of 1986 with
respect to the manufacturer.''.
(ii) Medicaid and medicare part b.--Section
1927(a)(3) of the Social Security Act (42 U.S.C.
1396r-8(a)(3)) is amended by adding at the end the
following new sentence: ``The preceding sentence
shall not apply to a single source drug or
innovator multiple source drug of a manufacturer
for any period described in section 5000D(c)(1) of
the Internal Revenue Code of 1986 with respect to
the manufacturer.''.
(H) Disclosure of information under medicare part
d.--
(i) Contract requirements.--Section 1860D-
12(b)(3)(D)(i) of the Social Security Act (42
U.S.C. 1395w-112(b)(3)(D)(i)) is amended by
inserting ``, or carrying out part E of title XI''
after ``appropriate)''.
(ii) Subsidies.--Section 1860D-15(f)(2)(A)(i)
of the Social Security Act (42 U.S.C. 1395w-
115(f)(2)(A)(i)) is amended by inserting ``or part
E of title XI'' after ``this section''.
(2) Drug price negotiation program prices included in best
price.--Section 1927(c)(1)(C) of the Social Security Act (42
U.S.C. 1396r-8(c)(1)(C)) is amended--
(A) in clause (i)(VI), by striking ``any prices
charged'' and inserting ``subject to clause (ii)(V), any
prices charged''; and
(B) in clause (ii)--
(i) in subclause (III), by striking ``; and''
at the end;
[[Page 136 STAT. 1854]]
(ii) in subclause (IV), by striking the period
at the end and inserting ``; and''; and
(iii) by adding at the end the following new
subclause:
``(V) in the case of a rebate period
and a covered outpatient drug that is a
selected drug (as referred to in section
1192(c)) during such rebate period,
shall be inclusive of the maximum fair
price (as defined in section 1191(c)(3))
for such drug with respect to such
period.''.
(3) Maximum fair prices excluded from average manufacturer
price.--Section 1927(k)(1)(B)(i) of the Social Security Act (42
U.S.C. 1396r-8(k)(1)(B)(i)) is amended--
(A) in subclause (IV) by striking ``; and'' at the
end;
(B) in subclause (V) by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following new
subclause:
``(VI) any reduction in price paid
during the rebate period to the
manufacturer for a drug by reason of
application of part E of title XI.''.
(c) <<NOTE: 42 USC 1320f note.>> Implementation for 2026 Through
2028.--The Secretary of Health and Human Services shall implement this
section, including the amendments made by this section, for 2026, 2027,
and 2028 by program instruction or other forms of program guidance.
SEC. 11002. SPECIAL RULE TO DELAY SELECTION AND NEGOTIATION OF
BIOLOGICS FOR BIOSIMILAR MARKET ENTRY.
(a) In General.--Part E of title XI of the Social Security Act, as
added by section 11001, is amended--
(1) <<NOTE: 42 USC 1320f-1.>> in section 1192--
(A) in subsection (a), in the flush matter following
paragraph (4), by inserting ``and subsection (b)(3)''
after ``the previous sentence'';
(B) in subsection (b)--
(i) in paragraph (1), by adding at the end the
following new subparagraph:
``(C) In the case of a biological product for which
the inclusion of the biological product as a selected
drug on a list published under subsection (a) has been
delayed under subsection (f)(2), remove such biological
product from the rankings under subparagraph (A) before
making the selections under subparagraph (B).''; and
(ii) by adding at the end the following new
paragraph:
``(3) Inclusion of delayed biological products.--Pursuant to
subparagraphs (B)(ii)(I) and (C)(i) of subsection (f)(2), the
Secretary shall select and include on the list published under
subsection (a) the biological products described in such
subparagraphs. Such biological products shall count towards the
required number of drugs to be selected under subsection
(a)(1).''; and
(C) by adding at the end the following new
subsection:
``(f) Special Rule To Delay Selection and Negotiation of Biologics
for Biosimilar Market Entry.--
``(1) Application.--
[[Page 136 STAT. 1855]]
``(A) <<NOTE: Determination. Time period.>> In
general.--Subject to subparagraph (B), in the case of a
biological product that would (but for this subsection)
be an extended-monopoly drug (as defined in section
1194(c)(4)) included as a selected drug on the list
published under subsection (a) with respect to an
initial price applicability year, the rules described in
paragraph (2) shall apply if the Secretary determines
that there is a high likelihood (as described in
paragraph (3)) that a biosimilar biological product (for
which such biological product will be the reference
product) will be licensed and marketed under section
351(k) of the Public Health Service Act before the date
that is 2 years after the selected drug publication date
with respect to such initial price applicability year.
``(B) Request required.--
``(i) In general.--The Secretary shall not
provide for a delay under--
``(I) paragraph (2)(A) unless a
request is made for such a delay by a
manufacturer of a biosimilar biological
product prior to the selected drug
publication date for the list published
under subsection (a) with respect to the
initial price applicability year for
which the biological product may have
been included as a selected drug on such
list but for subparagraph (2)(A); or
``(II) <<NOTE: Time period.>>
paragraph (2)(B)(iii) unless a request
is made for such a delay by such a
manufacturer prior to the selected drug
publication date for the list published
under subsection (a) with respect to the
initial price applicability year that is
1 year after the initial price
applicability year for which the
biological product described in
subsection (a) would have been included
as a selected drug on such list but for
paragraph (2)(A).
``(ii) Information and documents.--
``(I) In general.--A request made
under clause (i) shall be submitted to
the Secretary by such manufacturer at a
time and in a form and manner specified
by the Secretary, and contain--
``(aa) information and
documents necessary for the
Secretary to make determinations
under this subsection, as
specified by the Secretary and
including, to the extent
available, items described in
subclause (III); and
``(bb) all agreements
related to the biosimilar
biological product filed with
the Federal Trade Commission or
the Assistant Attorney General
pursuant to subsections (a) and
(c) of section 1112 of the
Medicare Prescription Drug,
Improvement, and Modernization
Act of 2003.
``(II) Additional information and
documents.--After the Secretary has
reviewed the request and materials
submitted under subclause (I), the
manufacturer shall submit any additional
[[Page 136 STAT. 1856]]
information and documents requested by
the Secretary necessary to make
determinations under this subsection.
``(III) Items described.--The items
described in this clause are the
following:
``(aa) The manufacturing
schedule for such biosimilar
biological product submitted to
the Food and Drug Administration
during its review of the
application under such section
351(k).
``(bb) <<NOTE: Time
period.>> Disclosures (in
filings by the manufacturer of
such biosimilar biological
product with the Securities and
Exchange Commission required
under section 12(b), 12(g),
13(a), or 15(d) of the
Securities Exchange Act of 1934
about capital investment,
revenue expectations, and
actions taken by the
manufacturer that are typical of
the normal course of business in
the year (or the 2 years, as
applicable) before marketing of
a biosimilar biological product)
that pertain to the marketing of
such biosimilar biological
product, or comparable
documentation that is
distributed to the shareholders
of privately held companies.
``(C) Aggregation rule.--
``(i) In general.--All persons treated as a
single employer under subsection (a) or (b) of
section 52 of the Internal Revenue Code of 1986,
or in a partnership, shall be treated as one
manufacturer for purposes of paragraph (2)(D)(iv).
``(ii) Partnership defined.--In clause (i),
the term `partnership' means a syndicate, group,
pool, joint venture, or other organization through
or by means of which any business, financial
operation, or venture is carried on by the
manufacturer of the biological product and the
manufacturer of the biosimilar biological product.
``(2) <<NOTE: Time periods. Determination.>> Rules
described.--The rules described in this paragraph are the
following:
``(A) Delayed selection and negotiation for 1
year.--If a determination of high likelihood is made
under paragraph (3), the Secretary shall delay the
inclusion of the biological product as a selected drug
on the list published under subsection (a) until such
list is published with respect to the initial price
applicability year that is 1 year after the initial
price applicability year for which the biological
product would have been included as a selected drug on
such list.
``(B) If not licensed and marketed during the
initial delay.--
``(i) In general.--If, during the time period
between the selected drug publication date on
which the biological product would have been
included on the list as a selected drug pursuant
to subsection (a) but for subparagraph (A) and the
selected drug publication date with respect to the
initial price applicability year that is 1 year
after the initial price applicability
[[Page 136 STAT. 1857]]
year for which such biological product would have
been included as a selected drug on such list, the
Secretary determines that the biosimilar
biological product for which the manufacturer
submitted the request under paragraph
(1)(B)(i)(II) (and for which the Secretary
previously made a high likelihood determination
under paragraph (3)) has not been licensed and
marketed under section 351(k) of the Public Health
Service Act, the Secretary shall, at the request
of such manufacturer--
``(I) reevaluate whether there is a
high likelihood (as described in
paragraph (3)) that such biosimilar
biological product will be licensed and
marketed under such section 351(k)
before the date that is 2 years after
the selected drug publication date for
which such biological product would have
been included as a selected drug on such
list published but for subparagraph (A);
and
``(II) <<NOTE: Evaluation.>>
evaluate whether, on the basis of clear
and convincing evidence, the
manufacturer of such biosimilar
biological product has made a
significant amount of progress (as
determined by the Secretary) towards
both such licensure and the marketing of
such biosimilar biological product
(based on information from items
described in subclauses (I)(bb) and (II)
of paragraph (1)(B)(ii)) since the
receipt by the Secretary of the request
made by such manufacturer under
paragraph (1)(B)(i)(I).
``(ii) Selection and negotiation.--If the
Secretary determines that there is not a high
likelihood that such biosimilar biological product
will be licensed and marketed as described in
clause (i)(I) or there has not been a significant
amount of progress as described in clause
(i)(II)--
``(I) the Secretary shall include
the biological product as a selected
drug on the list published under
subsection (a) with respect to the
initial price applicability year that is
1 year after the initial price
applicability year for which such
biological product would have been
included as a selected drug on such list
but for subparagraph (A); and
``(II) the manufacturer of such
biological product shall pay a rebate
under paragraph (4) with respect to the
year for which such manufacturer would
have provided access to a maximum fair
price for such biological product but
for subparagraph (A).
``(iii) Second 1-year delay.--If the Secretary
determines that there is a high likelihood that
such biosimilar biological product will be
licensed and marketed (as described in clause
(i)(I)) and a significant amount of progress has
been made by the manufacturer of such biosimilar
biological product towards such licensure and
marketing (as described in clause (i)(II)), the
Secretary shall delay the inclusion of the
biological product as a selected drug on the list
published under
[[Page 136 STAT. 1858]]
subsection (a) until the selected drug publication
date of such list with respect to the initial
price applicability year that is 2 years after the
initial price applicability year for which such
biological product would have been included as a
selected drug on such list but for this
subsection.
``(C) If not licensed and marketed during the year
two delay.--If, during the time period between the
selected drug publication date of the list for which the
biological product would have been included as a
selected drug but for subparagraph (B)(iii) and the
selected drug publication date with respect to the
initial price applicability year that is 2 years after
the initial price applicability year for which such
biological product would have been included as a
selected drug on such list but for this subsection, the
Secretary determines that such biosimilar biological
product has not been licensed and marketed--
``(i) the Secretary shall include such
biological product as a selected drug on such list
with respect to the initial price applicability
year that is 2 years after the initial price
applicability year for which such biological
product would have been included as a selected
drug on such list; and
``(ii) the manufacturer of such biological
product shall pay a rebate under paragraph (4)
with respect to the years for which such
manufacturer would have provided access to a
maximum fair price for such biological product but
for this subsection.
``(D) Limitations on delays.--
``(i) Limited to 2 years.--In no case shall
the Secretary delay the inclusion of a biological
product on the list published under subsection (a)
for more than 2 years.
``(ii) Exclusion of biological products that
transitioned to a long-monopoly drug during the
delay.--In the case of a biological product for
which the inclusion on the list published pursuant
to subsection (a) was delayed by 1 year under
subparagraph (A) and for which there would have
been a change in status to a long-monopoly drug
(as defined in section 1194(c)(5)) if such
biological product had been a selected drug, in no
case may the Secretary provide for a second 1-year
delay under subparagraph (B)(iii).
``(iii) Exclusion of biological products if
more than 1 year since licensure.--In no case
shall the Secretary delay the inclusion of a
biological product on the list published under
subsection (a) if more than 1 year has elapsed
since the biosimilar biological product has been
licensed under section 351(k) of the Public Health
Service Act and marketing has not commenced for
such biosimilar biological product.
``(iv) Certain manufacturers of biosimilar
biological products excluded.--In no case shall
the Secretary delay the inclusion of a biological
product
[[Page 136 STAT. 1859]]
as a selected drug on the list published under
subsection (a) if Secretary determined that the
manufacturer of the biosimilar biological product
described in paragraph (1)(A)--
``(I) is the same as the
manufacturer of the reference product
described in such paragraph or is
treated as being the same pursuant to
paragraph (1)(C); or
``(II) has, based on information
from items described in paragraph
(1)(B)(ii)(I)(bb), entered into any
agreement described in such paragraph
with the manufacturer of the reference
product described in paragraph (1)(A)
that--
``(aa) requires or
incentivizes the manufacturer of
the biosimilar biological
product to submit a request
described in paragraph (1)(B);
or
``(bb) restricts the
quantity (either directly or
indirectly) of the biosimilar
biological product that may be
sold in the United States over a
specified period of time.
``(3) High likelihood.--For purposes of this subsection,
there is a high likelihood described in paragraph (1) or
paragraph (2), as applicable, if the Secretary finds that--
``(A) an application for licensure under section
351(k) of the Public Health Service Act for the
biosimilar biological product has been accepted for
review or approved by the Food and Drug Administration;
and
``(B) information from items described in sub
clauses (I)(bb) and (III) of paragraph (1)(B)(ii)
submitted to the Secretary by the manufacturer
requesting a delay under such paragraph provides clear
and convincing evidence that such biosimilar biological
product will, within the time period specified under
paragraph (1)(A) or (2)(B)(i)(I), be marketed.
``(4) Rebate.--
``(A) In general.--For purposes of subparagraphs
(B)(ii)(II) and (C)(ii) of paragraph (2), in the case of
a biological product for which the inclusion on the list
under subsection (a) was delayed under this subsection
and for which the Secretary has negotiated and entered
into an agreement under section 1193 with respect to
such biological product, the manufacturer shall be
required to pay a rebate to the Secretary at such time
and in such manner as determined by the Secretary.
``(B) <<NOTE: Estimate.>> Amount.--Subject to
subparagraph (C), the amount of the rebate under
subparagraph (A) with respect to a biological product
shall be equal to the estimated amount--
``(i) in the case of a biological product that
is a covered part D drug (as defined in section
1860D-2(e)), that is the sum of the products of--
``(I) 75 percent of the amount by
which--
``(aa) the average
manufacturer price, as reported
by the manufacturer of such
covered part D drug under
section 1927 (or, if not
reported by such manufacturer
under section
[[Page 136 STAT. 1860]]
1927, as reported by such
manufacturer to the Secretary
pursuant to the agreement under
section 1193(a)) for such
biological product, with respect
to each of the calendar quarters
of the price applicability
period that would have applied
but for this subsection; exceeds
``(bb) in the initial price
applicability year that would
have applied but for a delay
under--
``(AA) paragraph (2)(A),
the maximum fair price
negotiated under section
1194 for such biological
product under such
agreement; or
``(BB) paragraph
(2)(B)(iii), such maximum
fair price, increased as
described in section
1195(b)(1)(A); and
``(II) the number of units dispensed
under part D of title XVIII for such
covered part D drug during each such
calendar quarter of such price
applicability period; and
``(ii) in the case of a biological product for
which payment may be made under part B of title
XVIII, that is the sum of the products of--
``(I) 80 percent of the amount by
which--
``(aa) the payment amount
for such biological product
under section 1847A(b), with
respect to each of the calendar
quarters of the price
applicability period that would
have applied but for this
subsection; exceeds
``(bb) in the initial price
applicability year that would
have applied but for a delay
under--
``(AA) paragraph (2)(A),
the maximum fair price
negotiated under section
1194 for such biological
product under such
agreement; or
``(BB) paragraph
(2)(B)(iii), such maximum
fair price, increased as
described in section
1195(b)(1)(A); and
``(II) the number of units
(excluding units that are packaged into
the payment amount for an item or
service and are not separately payable
under such part B) of the billing and
payment code of such biological product
administered or furnished under such
part B during each such calendar quarter
of such price applicability period.
``(C) Special rule for delayed biological products
that are long-monopoly drugs.--
``(i) <<NOTE: Determination.>> In general.--
In the case of a biological product with respect
to which a rebate is required to be paid under
this paragraph, if such biological product
qualifies as a long-monopoly drug (as defined in
section 1194(c)(5)) at the time of its inclusion
on the list published under subsection (a), in
determining the amount of the rebate for such
biological product under subparagraph (B), the
amount described in clause (ii) shall
[[Page 136 STAT. 1861]]
be substituted for the maximum fair price
described in clause (i)(I) or (ii)(I) of such
subparagraph (B), as applicable.
``(ii) <<NOTE: Time periods.>> Amount
described.--The amount described in this clause is
an amount equal to 65 percent of the average non-
Federal average manufacturer price for the
biological product for 2021 (or, in the case that
there is not an average non-Federal average
manufacturer price available for such biological
product for 2021, for the first full year
following the market entry for such biological
product), increased by the percentage increase in
the consumer price index for all urban consumers
(all items; United States city average) from
September 2021 (or December of such first full
year following the market entry), as applicable,
to September of the year prior to the selected
drug publication date with respect to the initial
price applicability year that would have applied
but for this subsection.
``(D) Rebate deposits.--Amounts paid as rebates
under this paragraph shall be deposited into--
``(i) in the case payment is made for such
biological product under part B of title XVIII,
the Federal Supplementary Medical Insurance Trust
Fund established under section 1841; and
``(ii) in the case such biological product is
a covered part D drug (as defined in section
1860D-2(e)), the Medicare Prescription Drug
Account under section 1860D-16 in such Trust Fund.
``(5) Definitions of biosimilar biological product.--In this
subsection, the term `biosimilar biological product' has the
meaning given such term in section 1847A(c)(6).'';
(2) in section 1193(a)(4) <<NOTE: 42 USC 1320f-2.>> --
(A) in the matter preceding subparagraph (A), by
inserting ``, and for section 1192(f),'' after ``section
1194(f))'';
(B) in subparagraph (A), by striking ``and'' at the
end;
(C) by adding at the end the following new
subparagraph:
``(C) information that the Secretary requires to
carry out section 1192(f), including rebates under
paragraph (4) of such section; and'';
(3) in section 1196(a)(7) <<NOTE: 42 USC 1320f-5.>> , by
striking ``section 1192(d)(2)(B)'' and inserting ``subsections
(d)(2)(B) and (f)(1)(C) of section 1192'';
(4) in section 1197 <<NOTE: 42 USC 1320f-6.>> --
(A) by redesignating subsections (b), (c), and (d)
as subsections (c), (d), and (e), respectively; and
(B) by inserting after subsection (a) the following
new subsection:
``(b) <<NOTE: Penalties.>> Violations Relating to Providing
Rebates.--Any manufacturer that fails to comply with the rebate
requirements under section 1192(f)(4) shall be subject to a civil
monetary penalty equal to 10 times the amount of the rebate the
manufacturer failed to pay under such section.''; and
(5) in section 1198(b)(2) <<NOTE: 42 USC 1320f-7.>> , by
inserting ``the application of section 1192(f),'' after
``section 1192(e)''.
[[Page 136 STAT. 1862]]
(b) Conforming Amendments for Disclosure of Certain Information.--
Section 1927(b)(3)(D)(i) of the Social Security Act (42 U.S.C. 1396r-
8(b)(3)(D)(i)) is amended by striking ``or to carry out section 1847B''
and inserting ``or to carry out section 1847B or section 1192(f),
including rebates under paragraph (4) of such section''.
(c) <<NOTE: 42 USC 1320f-1 note.>> Implementation for 2026 Through
2028.--The Secretary of Health and Human Services shall implement this
section, including the amendments made by this section, for 2026, 2027,
and 2028 by program instruction or other forms of program guidance.
SEC. 11003. EXCISE TAX IMPOSED ON DRUG MANUFACTURERS DURING
NONCOMPLIANCE PERIODS.
(a) In General.--Subtitle D of the Internal Revenue Code of 1986 is
amended by adding at the end the following new chapter:
``CHAPTER 50A <<NOTE: 26 USC 5000D prec.>> --DESIGNATED DRUGS
``Sec. 5000D. Designated drugs during noncompliance periods.
``SEC. 5000D <<NOTE: 26 USC 5000D.>> . DESIGNATED DRUGS DURING
NONCOMPLIANCE PERIODS.
``(a) In General.--There is hereby imposed on the sale by the
manufacturer, producer, or importer of any designated drug during a day
described in subsection (b) a tax in an amount such that the applicable
percentage is equal to the ratio of--
``(1) such tax, divided by
``(2) the sum of such tax and the price for which so sold.
``(b) Noncompliance Periods.--A day is described in this subsection
with respect to a designated drug if it is a day during one of the
following periods:
``(1) The period beginning on the March 1st (or, in the case
of initial price applicability year 2026, the October 2nd)
immediately following the date on which such drug is included on
the list published under section 1192(a) of the Social Security
Act and ending on the earlier of--
``(A) the first date on which the manufacturer of
such designated drug has in place an agreement described
in section 1193(a) of such Act with respect to such
drug, or
``(B) the date that the Secretary of Health and
Human Services has made a determination described in
section 1192(c)(1) of such Act with respect to such
designated drug.
``(2) The period beginning on the November 2nd immediately
following the March 1st described in paragraph (1) (or, in the
case of initial price applicability year 2026, the August 2nd
immediately following the October 2nd described in such
paragraph) and ending on the earlier of--
``(A) the first date on which the manufacturer of
such designated drug and the Secretary of Health and
Human Services have agreed to a maximum fair price under
an agreement described in section 1193(a) of the Social
Security Act, or
``(B) the date that the Secretary of Health and
Human Services has made a determination described in
section 1192(c)(1) of such Act with respect to such
designated drug.
``(3) In the case of any designated drug which is a selected
drug (as defined in section 1192(c) of the Social Security Act)
[[Page 136 STAT. 1863]]
that the Secretary of Health and Human Services has selected for
renegotiation under section 1194(f) of such Act, the period
beginning on the November 2nd of the year that begins 2 years
prior to the first initial price applicability year of the price
applicability period for which the maximum fair price
established pursuant to such renegotiation applies and ending on
the earlier of--
``(A) the first date on which the manufacturer of
such designated drug has agreed to a renegotiated
maximum fair price under such agreement, or
``(B) the date that the Secretary of Health and
Human Services has made a determination described in
section 1192(c)(1) of such Act with respect to such
designated drug.
``(4) With respect to information that is required to be
submitted to the Secretary of Health and Human Services under an
agreement described in section 1193(a) of the Social Security
Act, the period beginning on the date on which such Secretary
certifies that such information is overdue and ending on the
date that such information is so submitted.
``(c) Suspension of Tax.-- <<NOTE: Contracts.>>
``(1) In general.--A day shall not be taken into account as
a day during a period described in subsection (b) if such day is
also a day during the period--
``(A) beginning on the first date on which--
``(i) <<NOTE: Notice.>> the notice of
terminations of all applicable agreements of the
manufacturer have been received by the Secretary
of Health and Human Services, and
``(ii) none of the drugs of the manufacturer
of the designated drug are covered by an agreement
under section 1860D-14A or 1860D-14C of the Social
Security Act, and
``(B) ending on the last day of February following
the earlier of--
``(i) the first day after the date described
in subparagraph (A) on which the manufacturer
enters into any subsequent applicable agreement,
or
``(ii) the first date any drug of the
manufacturer of the designated drug is covered by
an agreement under section 1860D-14A or 1860D-14C
of the Social Security Act.
``(2) <<NOTE: Definition.>> Applicable agreement.--For
purposes of this subsection, the term `applicable agreement'
means the following:
``(A) An agreement under--
``(i) the Medicare coverage gap discount
program under section 1860D-14A of the Social
Security Act, or
``(ii) the manufacturer discount program under
section 1860D-14C of such Act.
``(B) A rebate agreement described in section
1927(b) of such Act.
``(d) <<NOTE: Definition.>> Applicable Percentage.--For purposes of
this section, the term `applicable percentage' means--
``(1) in the case of sales of a designated drug during the
first 90 days described in subsection (b) with respect to such
drug, 65 percent,
[[Page 136 STAT. 1864]]
``(2) in the case of sales of such drug during the 91st day
through the 180th day described in subsection (b) with respect
to such drug, 75 percent,
``(3) in the case of sales of such drug during the 181st day
through the 270th day described in subsection (b) with respect
to such drug, 85 percent, and
``(4) in the case of sales of such drug during any
subsequent day, 95 percent.
``(e) Definitions.--For purposes of this section--
``(1) Designated drug.--The term `designated drug' means any
negotiation-eligible drug (as defined in section 1192(d) of the
Social Security Act) included on the list published under
section 1192(a) of such Act which is manufactured or produced in
the United States or entered into the United States for
consumption, use, or warehousing.
``(2) United states.--The term `United States' has the
meaning given such term by section 4612(a)(4).
``(3) Other terms.--The terms `initial price applicability
year', `price applicability period', and `maximum fair price'
have the meaning given such terms in section 1191 of the Social
Security Act.
``(f) Special Rules.--
``(1) <<NOTE: Applicability.>> Coordination with rules for
possessions of the united states.--Rules similar to the rules of
paragraphs (2) and (4) of section 4132(c) shall apply for
purposes of this section.
``(2) Anti-abuse rule.--In the case of a sale which was
timed for the purpose of avoiding the tax imposed by this
section, the Secretary may treat such sale as occurring during a
day described in subsection (b).
``(g) <<NOTE: Applicability.>> Exports.--Rules similar to the rules
of section 4662(e) (other than section 4662(e)(2)(A)(ii)(II)) shall
apply for purposes of this chapter.
``(h) <<NOTE: Guidelines.>> Regulations.--The Secretary shall
prescribe such regulations and other guidance as may be necessary to
carry out this section.''.
(b) No Deduction for Excise Tax Payments.--Section 275(a)(6) of the
Internal Revenue Code of 1986 <<NOTE: 26 USC 275.>> is amended by
inserting ``50A,'' after ``46,''.
(c) Clerical Amendment.--The table of chapters for subtitle D of the
Internal Revenue Code of 1986 <<NOTE: 26 USC 4001 prec.>> is amended by
adding at the end the following new item:
``Chapter 50A--Designated Drugs''.
(d) <<NOTE: 26 USC 5000D note.>> Effective Date.--The amendments
made by this section shall apply to sales after the date of the
enactment of this Act.
SEC. 11004. FUNDING.
In addition to amounts otherwise available, there is appropriated to
the Centers for Medicare & Medicaid Services, out of any money in the
Treasury not otherwise appropriated, $3,000,000,000 for fiscal year
2022, to remain available until expended, to carry out the provisions
of, including the amendments made by, this part.
[[Page 136 STAT. 1865]]
PART 2--PRESCRIPTION DRUG INFLATION REBATES
SEC. 11101. MEDICARE PART B REBATE BY MANUFACTURERS.
(a) In General.--Section 1847A of the Social Security Act (42 U.S.C.
1395w-3a) is amended by redesignating subsection (i) as subsection (j)
and by inserting after subsection (h) the following subsection:
``(i) Rebate by Manufacturers for Single Source Drugs and
Biologicals With Prices Increasing Faster Than Inflation.--
``(1) <<NOTE: Deadlines. Effective dates. Time periods.>>
Requirements.--
``(A) <<NOTE: Reports.>> Secretarial provision of
information.--Not later than 6 months after the end of
each calendar quarter beginning on or after January 1,
2023, the Secretary shall, for each part B rebatable
drug, report to each manufacturer of such part B
rebatable drug the following for such calendar quarter:
``(i) Information on the total number of units
of the billing and payment code described in
subparagraph (A)(i) of paragraph (3) with respect
to such drug and calendar quarter.
``(ii) Information on the amount (if any) of
the excess average sales price increase described
in subparagraph (A)(ii) of such paragraph for such
drug and calendar quarter.
``(iii) The rebate amount specified under such
paragraph for such part B rebatable drug and
calendar quarter.
``(B) Manufacturer requirement.--For each calendar
quarter beginning on or after January 1, 2023, the
manufacturer of a part B rebatable drug shall, for such
drug, not later than 30 days after the date of receipt
from the Secretary of the information described in
subparagraph (A) for such calendar quarter, provide to
the Secretary a rebate that is equal to the amount
specified in paragraph (3) for such drug for such
calendar quarter.
``(C) Transition rule for reporting.--The Secretary
may, for each part B rebatable drug, delay the timeframe
for reporting the information described in subparagraph
(A) for calendar quarters beginning in 2023 and 2024
until not later than September 30, 2025.
``(2) Part b rebatable drug defined.--
``(A) In general.--In this subsection, the term
`part B rebatable drug' means a single source drug or
biological (as defined in subparagraph (D) of subsection
(c)(6)), including a biosimilar biological product (as
defined in subparagraph (H) of such subsection) but
excluding a qualifying biosimilar biological product (as
defined in subsection (b)(8)(B)(iii)), for which payment
is made under this part, except such term shall not
include such a drug or biological--
``(i) <<NOTE: Determination.>> if, as
determined by the Secretary, the average total
allowed charges for such drug or biological under
this part for a year per individual that uses such
[[Page 136 STAT. 1866]]
a drug or biological are less than, subject to
subparagraph (B), $100; or
``(ii) that is a vaccine described in
subparagraph (A) or (B) of section 1861(s)(10).
``(B) <<NOTE: Time periods.>> Increase.--The dollar
amount applied under subparagraph (A)(i)--
``(i) for 2024, shall be the dollar amount
specified under such subparagraph for 2023,
increased by the percentage increase in the
consumer price index for all urban consumers
(United States city average) for the 12-month
period ending with June of the previous year; and
``(ii) for a subsequent year, shall be the
dollar amount specified in this clause (or clause
(i)) for the previous year (without application of
subparagraph (C)), increased by the percentage
increase in the consumer price index for all urban
consumers (United States city average) for the 12-
month period ending with June of the previous
year.
``(C) Rounding.--Any dollar amount determined under
subparagraph (B) that is not a multiple of $10 shall be
rounded to the nearest multiple of $10.
``(3) <<NOTE: Time periods.>> Rebate amount.--
``(A) <<NOTE: Estimate.>> In general.--For purposes
of paragraph (1), the amount specified in this paragraph
for a part B rebatable drug assigned to a billing and
payment code for a calendar quarter is, subject to
subparagraphs (B) and (G) and paragraph (4), the
estimated amount equal to the product of--
``(i) the total number of units determined
under subparagraph (B) for the billing and payment
code of such drug; and
``(ii) the amount (if any) by which--
``(I) the amount equal to--
``(aa) in the case of a part
B rebatable drug described in
paragraph (1)(B) of subsection
(b), 106 percent of the amount
determined under paragraph (4)
of such section for such drug
during the calendar quarter; or
``(bb) in the case of a part
B rebatable drug described in
paragraph (1)(C) of such
subsection, the payment amount
under such paragraph for such
drug during the calendar
quarter; exceeds
``(II) the inflation-adjusted
payment amount determined under
subparagraph (C) for such part B
rebatable drug during the calendar
quarter.
``(B) Total number of units.--For purposes of
subparagraph (A)(i), the total number of units for the
billing and payment code with respect to a part B
rebatable drug furnished during a calendar quarter
described in subparagraph (A) is equal to--
``(i) the number of units for the billing and
payment code of such drug furnished during such
calendar quarter, minus
[[Page 136 STAT. 1867]]
``(ii) the number of units for such billing
and payment code of such drug furnished during
such calendar quarter--
``(I) with respect to which the
manufacturer provides a discount under
the program under section 340B of the
Public Health Service Act or a rebate
under section 1927; or
``(II) that are packaged into the
payment amount for an item or service
and are not separately payable.
``(C) Determination of inflation-adjusted payment
amount.--The inflation-adjusted payment amount
determined under this subparagraph for a part B
rebatable drug for a calendar quarter is--
``(i) the payment amount for the billing and
payment code for such drug in the payment amount
benchmark quarter (as defined in subparagraph
(D)); increased by
``(ii) the percentage by which the rebate
period CPI-U (as defined in subparagraph (F)) for
the calendar quarter exceeds the benchmark period
CPI-U (as defined in subparagraph (E)).
``(D) <<NOTE: Definition.>> Payment amount
benchmark quarter.--The term `payment amount benchmark
quarter' means the calendar quarter beginning July 1,
2021.
``(E) <<NOTE: Definition.>> Benchmark period cpi-
u.--The term `benchmark period CPI-U' means the consumer
price index for all urban consumers (United States city
average) for January 2021.
``(F) Rebate period cpi-u.--The term `rebate period
CPI-U' means, with respect to a calendar quarter
described in subparagraph (C), the greater of the
benchmark period CPI-U and the consumer price index for
all urban consumers (United States city average) for the
first month of the calendar quarter that is two calendar
quarters prior to such described calendar quarter.
``(G) Reduction or waiver for shortages and severe
supply chain disruptions.--The Secretary shall reduce or
waive the amount under subparagraph (A) with respect to
a part B rebatable drug and a calendar quarter--
``(i) in the case of a part B rebatable drug
that is described as currently in shortage on the
shortage list in effect under section 506E of the
Federal Food, Drug, and Cosmetic Act at any point
during the calendar quarter; or
``(ii) <<NOTE: Determination.>> in the case
of a biosimilar biological product, when the
Secretary determines there is a severe supply
chain disruption during the calendar quarter, such
as that caused by a natural disaster or other
unique or unexpected event.
``(4) <<NOTE: Effective dates. Applicability. Time
periods.>> Special treatment of certain drugs and exemption.--
``(A) Subsequently approved drugs.--In the case of a
part B rebatable drug first approved or licensed by the
Food and Drug Administration after December 1, 2020,
clause (i) of paragraph (3)(C) shall be applied as if
the term `payment amount benchmark quarter' were defined
[[Page 136 STAT. 1868]]
under paragraph (3)(D) as the third full calendar
quarter after the day on which the drug was first
marketed and clause (ii) of paragraph (3)(C) shall be
applied as if the term `benchmark period CPI-U' were
defined under paragraph (3)(E) as if the reference to
`January 2021' under such paragraph were a reference to
`the first month of the first full calendar quarter
after the day on which the drug was first marketed'.
``(B) Timeline for provision of rebates for
subsequently approved drugs.--In the case of a part B
rebatable drug first approved or licensed by the Food
and Drug Administration after December 1, 2020,
paragraph (1)(B) shall be applied as if the reference to
`January 1, 2023' under such paragraph were a reference
to `the later of the 6th full calendar quarter after the
day on which the drug was first marketed or January 1,
2023'.
``(C) Selected drugs.--In the case of a part B
rebatable drug that is a selected drug (as defined in
section 1192(c)) with respect to a price applicability
period (as defined in section 1191(b)(2)), in the case
such drug is no longer considered to be a selected drug
under section 1192(c), for each applicable period (as
defined under subsection (g)(7)) beginning after the
price applicability period with respect to such drug,
clause (i) of paragraph (3)(C) shall be applied as if
the term `payment amount benchmark quarter' were defined
under paragraph (3)(D) as the calendar quarter beginning
January 1 of the last year during such price
applicability period with respect to such selected drug
and clause (ii) of paragraph (3)(C) shall be applied as
if the term `benchmark period CPI-U' were defined under
paragraph (3)(E) as if the reference to `January 2021'
under such paragraph were a reference to `the July of
the year preceding such last year'.
``(5) <<NOTE: Effective date. Time period.>> Application to
beneficiary coinsurance.--In the case of a part B rebatable drug
furnished on or after April 1, 2023, if the payment amount
described in paragraph (3)(A)(ii)(I) (or, in the case of a part
B rebatable drug that is a selected drug (as defined in section
1192(c)), the payment amount described in subsection (b)(1)(B)
for such drug) for a calendar quarter exceeds the inflation
adjusted payment for such quarter--
``(A) in computing the amount of any coinsurance
applicable under this part to an individual to whom such
drug is furnished, the computation of such coinsurance
shall be equal to 20 percent of the inflation-adjusted
payment amount determined under paragraph (3)(C) for
such part B rebatable drug; and
``(B) <<NOTE: Applicability. Determination.>> the
amount of such coinsurance for such calendar quarter, as
computed under subparagraph (A), shall be applied as a
percent, as determined by the Secretary, to the payment
amount that would otherwise apply under subparagraphs
(B) or (C) of subsection (b)(1).
``(6) Rebate deposits.--Amounts paid as rebates under
paragraph (1)(B) shall be deposited into the Federal
Supplementary Medical Insurance Trust Fund established under
section 1841.
[[Page 136 STAT. 1869]]
``(7) <<NOTE: Time period.>> Civil money penalty.--If a
manufacturer of a part B rebatable drug has failed to comply
with the requirements under paragraph (1)(B) for such drug for a
calendar quarter, the manufacturer shall be subject to, in
accordance with a process established by the Secretary pursuant
to regulations, a civil money penalty in an amount equal to at
least 125 percent of the amount specified in paragraph (3) for
such drug for such calendar quarter.
The <<NOTE: Applicability.>> provisions of section 1128A (other
than subsections (a) (with respect to amounts of penalties or
additional assessments) and (b)) shall apply to a civil money
penalty under this paragraph in the same manner as such
provisions apply to a penalty or proceeding under section
1128A(a).
``(8) Limitation on administrative or judicial review.--
There shall be no administrative or judicial review of any of
the following:
``(A) The determination of units under this
subsection.
``(B) The determination of whether a drug is a part
B rebatable drug under this subsection.
``(C) The calculation of the rebate amount under
this subsection.
``(D) The computation of coinsurance under paragraph
(5) of this subsection.
``(E) The computation of amounts paid under section
1833(a)(1)(EE).''.
(b) Amounts Payable; Cost-Sharing.--Section 1833 of the Social
Security Act (42 U.S.C. 1395l) is amended--
(1) in subsection (a)(1)--
(A) in subparagraph (G), by inserting ``, subject to
subsection (i)(9),'' after ``the amounts paid'';
(B) in subparagraph (S), by striking ``with respect
to'' and inserting ``subject to subparagraph (EE), with
respect to'';
(C) by striking ``and (DD)'' and inserting ``(DD)'';
and
(D) <<NOTE: Effective date. Time
period. Applicability.>> by inserting before the
semicolon at the end the following: ``, and (EE) with
respect to a part B rebatable drug (as defined in
paragraph (2) of section 1847A(i)) furnished on or after
April 1, 2023, for which the payment amount for a
calendar quarter under paragraph (3)(A)(ii)(I) of such
section (or, in the case of a part B rebatable drug that
is a selected drug (as defined in section 1192(c) for
which, the payment amount described in section
1847A(b)(1)(B)) for such drug for such quarter exceeds
the inflation-adjusted payment under paragraph
(3)(A)(ii)(II) of such section for such quarter, the
amounts paid shall be equal to the percent of the
payment amount under paragraph (3)(A)(ii)(I) of such
section or section 1847A(b)(1)(B), as applicable, that
equals the difference between (i) 100 percent, and (ii)
the percent applied under section 1847A(i)(5)(B)'';
(2) in subsection (i), by adding at the end the following
new paragraph:
``(9) <<NOTE: Effective date. Determination. Applicability.>> In
the case of a part B rebatable drug (as defined in paragraph (2) of
section 1847A(i)) for which payment under this subsection is not
packaged into a payment for a service furnished on or after April 1,
2023, under the revised payment system under this subsection, in lieu of
calculation of coinsurance and the amount
[[Page 136 STAT. 1870]]
of payment otherwise applicable under this subsection, the provisions of
section 1847A(i)(5) and paragraph (1)(EE) of subsection (a), shall, as
determined appropriate by the Secretary, apply under this subsection in
the same manner as such provisions of section 1847A(i)(5) and subsection
(a) apply under such section and subsection.''; and
(3) in subsection (t)(8), by adding at the end the following
new subparagraph:
``(F) <<NOTE: Effective date. Time
period. Determination. Applicability.>> Part b
rebatable drugs.--In the case of a part B rebatable drug
(as defined in paragraph (2) of section 1847A(i), except
if such drug does not have a copayment amount as a
result of application of subparagraph (E)) for which
payment under this part is not packaged into a payment
for a covered OPD service (or group of services)
furnished on or after April 1, 2023, and the payment for
such drug under this subsection is the same as the
amount for a calendar quarter under paragraph
(3)(A)(ii)(I) of section 1847A(i), under the system
under this subsection, in lieu of calculation of the
copayment amount and the amount of payment otherwise
applicable under this subsection (other than the
application of the limitation described in subparagraph
(C)), the provisions of section 1847A(i)(5) and
paragraph (1)(EE) of subsection (a), shall, as
determined appropriate by the Secretary, apply under
this subsection in the same manner as such provisions of
section 1847A(i)(5) and subsection (a) apply under such
section and subsection.''.
(c) Conforming Amendments.--
(1) To part b asp calculation.--Section 1847A(c)(3) of the
Social Security Act (42 U.S.C. 1395w-3a(c)(3)) is amended by
inserting ``subsection (i) or'' before ``section 1927''.
(2) Excluding part b drug inflation rebate from best
price.--Section 1927(c)(1)(C)(ii)(I) of the Social Security Act
(42 U.S.C. 1396r-8(c)(1)(C)(ii)(I)) is amended by inserting ``or
section 1847A(i)'' after ``this section''.
(3) Coordination with medicaid rebate information
disclosure.--Section 1927(b)(3)(D)(i) of the Social Security Act
(42 U.S.C. 1396r-8(b)(3)(D)(i)) is amended by inserting ``and
the rebate'' after ``the payment amount''.
(4) Excluding part b drug inflation rebates from average
manufacturer price.--Section 1927(k)(1)(B)(i) of the Social
Security Act (42 U.S.C. 1396r-8(k)(1)(B)(i)), as amended by
section 11001(b)(3), is amended--
(A) in subclause (V), by striking ``and'' at the
end;
(B) in subclause (VI), by striking the period at the
end and inserting a semicolon; and
(C) by adding at the end the following new
subclause:
``(VII) rebates paid by
manufacturers under section 1847A(i);
and''.
(d) <<NOTE: Time period.>> Funding.--In addition to amounts
otherwise available, there are appropriated to the Centers for Medicare
& Medicaid Services, out of any money in the Treasury not otherwise
appropriated, $80,000,000 for fiscal year 2022, including $12,500,000 to
carry out the provisions of, including the amendments made by, this
section in fiscal year 2022, and $7,500,000 to carry out the provisions
of, including the amendments made by, this section
[[Page 136 STAT. 1871]]
in each of fiscal years 2023 through 2031, to remain available until
expended.
SEC. 11102. MEDICARE PART D REBATE BY MANUFACTURERS.
(a) In General.--Part D of title XVIII of the Social Security Act is
amended by inserting after section 1860D-14A (42 U.S.C. 1395w-114a) the
following new section:
``SEC. 1860D-14B. <<NOTE: 42 USC 1395w-114b.>> MANUFACTURER
REBATE FOR CERTAIN DRUGS WITH PRICES
INCREASING FASTER THAN INFLATION.
``(a) Requirements.--
``(1) <<NOTE: Reports.>> Secretarial provision of
information.--Not later than 9 months after the end of each
applicable period (as defined in subsection (g)(7)), subject to
paragraph (3), the Secretary shall, for each part D rebatable
drug, report to each manufacturer of such part D rebatable drug
the following for such period:
``(A) The amount (if any) of the excess annual
manufacturer price increase described in subsection
(b)(1)(A)(ii) for each dosage form and strength with
respect to such drug and period.
``(B) The rebate amount specified under subsection
(b) for each dosage form and strength with respect to
such drug and period.
``(2) <<NOTE: Deadline.>> Manufacturer requirements.--For
each applicable period, the manufacturer of a part D rebatable
drug, for each dosage form and strength with respect to such
drug, not later than 30 days after the date of receipt from the
Secretary of the information described in paragraph (1) for such
period, shall provide to the Secretary a rebate that is equal to
the amount specified in subsection (b) for such dosage form and
strength with respect to such drug for such period.
``(3) <<NOTE: Time period. Effective date.>> Transition
rule for reporting.--The Secretary may, for each rebatable
covered part D drug, delay the timeframe for reporting the
information and rebate amount described in subparagraphs (A) and
(B) of such paragraph for the applicable periods beginning
October 1, 2022, and October 1, 2023, until not later than
December 31, 2025.
``(b) <<NOTE: Determinations.>> Rebate Amount.--
``(1) In general.--
``(A) Calculation.--For purposes of this section,
the amount specified in this subsection for a dosage
form and strength with respect to a part D rebatable
drug and applicable period is, subject to subparagraph
(C), paragraph (5)(B), and paragraph (6), the estimated
amount equal to the product of--
``(i) subject to subparagraph (B) of this
paragraph, the total number of units of such
dosage form and strength for each rebatable
covered part D drug dispensed under this part
during the applicable period; and
``(ii) the amount (if any) by which--
``(I) the annual manufacturer price
(as determined in paragraph (2)) paid
for such dosage form and strength with
respect to such part D rebatable drug
for the period; exceeds
``(II) the inflation-adjusted
payment amount determined under
paragraph (3) for such dosage
[[Page 136 STAT. 1872]]
form and strength with respect to such
part D rebatable drug for the period.
``(B) <<NOTE: Effective date.>> Excluded units.--
For purposes of subparagraph (A)(i), beginning with plan
year 2026, the Secretary shall exclude from the total
number of units for a dosage form and strength with
respect to a part D rebatable drug, with respect to an
applicable period, units of each dosage form and
strength of such part D rebatable drug for which the
manufacturer provides a discount under the program under
section 340B of the Public Health Service Act.
``(C) Reduction or waiver for shortages and severe
supply chain disruptions.--The Secretary shall reduce or
waive the amount under subparagraph (A) with respect to
a part D rebatable drug and an applicable period--
``(i) in the case of a part D rebatable drug
that is described as currently in shortage on the
shortage list in effect under section 506E of the
Federal Food, Drug, and Cosmetic Act at any point
during the applicable period;
``(ii) in the case of a generic part D
rebatable drug (described in subsection
(g)(1)(C)(ii)) or a biosimilar (defined as a
biological product licensed under section 351(k)
of the Public Health Service Act), when the
Secretary determines there is a severe supply
chain disruption during the applicable period,
such as that caused by a natural disaster or other
unique or unexpected event; and
``(iii) in the case of a generic Part D
rebatable drug (as so described), if the Secretary
determines that without such reduction or waiver,
the drug is likely to be described as in shortage
on such shortage list during a subsequent
applicable period.
``(2) Determination of annual manufacturer price.--The
annual manufacturer price determined under this paragraph for a
dosage form and strength, with respect to a part D rebatable
drug and an applicable period, is the sum of the products of--
``(A) the average manufacturer price (as defined in
subsection (g)(6)) of such dosage form and strength, as
calculated for a unit of such drug, with respect to each
of the calendar quarters of such period; and
``(B) the ratio of--
``(i) the total number of units of such dosage
form and strength reported under section 1927 with
respect to each such calendar quarter of such
period; to
``(ii) the total number of units of such
dosage form and strength reported under section
1927 with respect to such period, as determined by
the Secretary.
``(3) Determination of inflation-adjusted payment amount.--
The inflation-adjusted payment amount determined under this
paragraph for a dosage form and strength with respect to a part
D rebatable drug for an applicable period, subject to paragraph
(5), is--
``(A) the benchmark period manufacturer price
determined under paragraph (4) for such dosage form and
strength with respect to such drug and period; increased
by
[[Page 136 STAT. 1873]]
``(B) the percentage by which the applicable period
CPI-U (as defined in subsection (g)(5)) for the period
exceeds the benchmark period CPI-U (as defined in
subsection (g)(4)).
``(4) Determination of benchmark period manufacturer
price.--The benchmark period manufacturer price determined under
this paragraph for a dosage form and strength, with respect to a
part D rebatable drug and an applicable period, is the sum of
the products of--
``(A) the average manufacturer price (as defined in
subsection (g)(6)) of such dosage form and strength, as
calculated for a unit of such drug, with respect to each
of the calendar quarters of the payment amount benchmark
period (as defined in subsection (g)(3)); and
``(B) the ratio of--
``(i) the total number of units reported under
section 1927 of such dosage form and strength with
respect to each such calendar quarter of such
payment amount benchmark period; to
``(ii) the total number of units reported
under section 1927 of such dosage form and
strength with respect to such payment amount
benchmark period.
``(5) Special treatment of certain drugs and exemption.--
``(A) <<NOTE: Effective dates. Applicability. Time
period.>> Subsequently approved drugs.--In the case of
a part D rebatable drug first approved or licensed by
the Food and Drug Administration after October 1, 2021,
subparagraphs (A) and (B) of paragraph (4) shall be
applied as if the term `payment amount benchmark period'
were defined under subsection (g)(3) as the first
calendar year beginning after the day on which the drug
was first marketed and subparagraph (B) of paragraph (3)
shall be applied as if the term `benchmark period CPI-U'
were defined under subsection (g)(4) as if the reference
to `January 2021' under such subsection were a reference
to `January of the first year beginning after the date
on which the drug was first marketed'.
``(B) Treatment of new formulations.--
``(i) In general.--In the case of a part D
rebatable drug that is a line extension of a part
D rebatable drug that is an oral solid dosage
form, the Secretary shall establish a formula for
determining the rebate amount under paragraph (1)
and the inflation adjusted payment amount under
paragraph (3) with respect to such part D
rebatable drug and an applicable period,
consistent with the formula applied under
subsection (c)(2)(C) of section 1927 for
determining a rebate obligation for a rebate
period under such section.
``(ii) Line extension defined.--In this
subparagraph, the term `line extension' means,
with respect to a part D rebatable drug, a new
formulation of the drug, such as an extended
release formulation, but does not include an
abuse-deterrent formulation of the drug (as
determined by the Secretary), regardless of
whether such abuse-deterrent formulation is an
extended release formulation.
[[Page 136 STAT. 1874]]
``(C) <<NOTE: Effective date. Applicability.>>
Selected drugs.--In the case of a part D rebatable drug
that is a selected drug (as defined in section 1192(c))
with respect to a price applicability period (as defined
in section 1191(b)(2)), in the case such drug is no
longer considered to be a selected drug under section
1192(c), for each applicable period (as defined under
subsection (g)(7)) beginning after the price
applicability period with respect to such drug,
subparagraphs (A) and (B) of paragraph (4) shall be
applied as if the term `payment amount benchmark period'
were defined under subsection (g)(3) as the last year
beginning during such price applicability period with
respect to such selected drug and subparagraph (B) of
paragraph (3) shall be applied as if the term `benchmark
period CPI-U' were defined under subsection (g)(4) as if
the reference to `January 2021' under such subsection
were a reference to `January of the last year beginning
during such price applicability period with respect to
such drug'.
``(6) Reconciliation in case of revised information.--The
Secretary shall provide for a method and process under which, in
the case where a PDP sponsor of a prescription drug plan or an
MA organization offering an MA-PD plan submits revisions to the
number of units of a rebatable covered part D drug dispensed,
the Secretary determines, pursuant to such revisions,
adjustments, if any, to the calculation of the amount specified
in this subsection for a dosage form and strength with respect
to such part D rebatable drug and an applicable period and
reconciles any overpayments or underpayments in amounts paid as
rebates under this subsection. <<NOTE: Deadline.>> Any
identified underpayment shall be rectified by the manufacturer
not later than 30 days after the date of receipt from the
Secretary of information on such underpayment.
``(c) Rebate Deposits.--Amounts paid as rebates under subsection (b)
shall be deposited into the Medicare Prescription Drug Account in the
Federal Supplementary Medical Insurance Trust Fund established under
section 1841.
``(d) Information.--For purposes of carrying out this section, the
Secretary shall use information submitted by--
``(1) manufacturers under section 1927(b)(3);
``(2) States under section 1927(b)(2)(A); and
``(3) PDP sponsors of prescription drug plans and MA
organization offering MA-PD plans under this part.
``(e) Civil Money Penalty.--If a manufacturer of a part D rebatable
drug has failed to comply with the requirement under subsection (a)(2)
with respect to such drug for an applicable period, the manufacturer
shall be subject to a civil money penalty in an amount equal to 125
percent of the amount specified in subsection (b) for such drug for such
period. The <<NOTE: Applicability.>> provisions of section 1128A (other
than subsections (a) (with respect to amounts of penalties or additional
assessments) and (b)) shall apply to a civil money penalty under this
subsection in the same manner as such provisions apply to a penalty or
proceeding under section 1128A(a).
``(f) Limitation on Administrative or Judicial Review.--There shall
be no administrative or judicial review of any of the following:
``(1) The determination of units under this section.
[[Page 136 STAT. 1875]]
``(2) The determination of whether a drug is a part D
rebatable drug under this section.
``(3) The calculation of the rebate amount under this
section.
``(g) Definitions.--In this section:
``(1) Part d rebatable drug.--
``(A) In general.--Except as provided in
subparagraph (B), the term `part D rebatable drug'
means, with respect to an applicable period, a drug or
biological described in subparagraph (C) that is a
covered part D drug (as such term is defined under
section 1860D-2(e)).
``(B) Exclusion.--
``(i) <<NOTE: Determinations. Estimate.>> In
general.--Such term shall, with respect to an
applicable period, not include a drug or
biological if the average annual total cost under
this part for such period per individual who uses
such a drug or biological, as determined by the
Secretary, is less than, subject to clause (ii),
$100, as determined by the Secretary using the
most recent data available or, if data is not
available, as estimated by the Secretary.
``(ii) <<NOTE: Time periods. Effective
dates.>> Increase.--The dollar amount applied
under clause (i)--
``(I) for the applicable period
beginning October 1, 2023, shall be the
dollar amount specified under such
clause for the applicable period
beginning October 1, 2022, increased by
the percentage increase in the consumer
price index for all urban consumers
(United States city average) for the 12-
month period beginning with October of
2023; and
``(II) for a subsequent applicable
period, shall be the dollar amount
specified in this clause for the
previous applicable period, increased by
the percentage increase in the consumer
price index for all urban consumers
(United States city average) for the 12-
month period beginning with October of
the previous period.
Any dollar amount specified under this clause that
is not a multiple of $10 shall be rounded to the
nearest multiple of $10.
``(C) Drug or biological described.--A drug or
biological described in this subparagraph is a drug or
biological that, as of the first day of the applicable
period involved, is--
``(i) a drug approved under a new drug
application under section 505(c) of the Federal
Food, Drug, and Cosmetic Act;
``(ii) a drug approved under an abbreviated
new drug application under section 505(j) of the
Federal Food, Drug, and Cosmetic Act, in the case
where--
``(I) the reference listed drug
approved under section 505(c) of the
Federal Food, Drug, and Cosmetic Act,
including any `authorized generic drug'
(as that term is defined in section
505(t)(3) of the Federal Food, Drug, and
Cosmetic Act), is not being marketed, as
identified in the Food and Drug
Administration's National Drug Code
Directory;
[[Page 136 STAT. 1876]]
``(II) there is no other drug
approved under section 505(j) of the
Federal Food, Drug, and Cosmetic Act
that is rated as therapeutically
equivalent (under the Food and Drug
Administration's most recent publication
of `Approved Drug Products with
Therapeutic Equivalence Evaluations')
and that is being marketed, as
identified in the Food and Drug
Administration's National Drug Code
Directory;
``(III) <<NOTE: Time period.>> the
manufacturer is not a `first applicant'
during the `180-day exclusivity period',
as those terms are defined in section
505(j)(5)(B)(iv) of the Federal Food,
Drug, and Cosmetic Act; and
``(IV) the manufacturer is not a
`first approved applicant' for a
competitive generic therapy, as that
term is defined in section
505(j)(5)(B)(v) of the Federal Food,
Drug, and Cosmetic Act; or
``(iii) a biological licensed under section
351 of the Public Health Service Act.
``(2) Unit.--The term `unit' means, with respect to a part D
rebatable drug, the lowest dispensable amount (such as a capsule
or tablet, milligram of molecules, or grams) of the part D
rebatable drug, as reported under section 1927.
``(3) Payment amount benchmark period.--The term `payment
amount benchmark period' means the period beginning January 1,
2021, and ending in the month immediately prior to October 1,
2021.
``(4) Benchmark period cpi-u.--The term `benchmark period
CPI-U' means the consumer price index for all urban consumers
(United States city average) for January 2021.
``(5) Applicable period cpi-u.--The term `applicable period
CPI-U' means, with respect to an applicable period, the consumer
price index for all urban consumers (United States city average)
for the first month of such applicable period.
``(6) Average manufacturer price.--The term `average
manufacturer price' has the meaning, with respect to a part D
rebatable drug of a manufacturer, given such term in section
1927(k)(1), with respect to a covered outpatient drug of a
manufacturer for a rebate period under section 1927.
``(7) Applicable period.--The term `applicable period' means
a 12-month period beginning with October 1 of a year (beginning
with October 1, 2022).
``(h) Implementation for 2022, 2023, and 2024.--The Secretary shall
implement this section for 2022, 2023, and 2024 by program instruction
or other forms of program guidance.''.
(b) Conforming Amendments.--
(1) To part b asp calculation.--Section 1847A(c)(3) of the
Social Security Act (42 U.S.C. 1395w-3a(c)(3)), as amended by
section 11101(c)(1), is amended by striking ``subsection (i) or
section 1927'' and inserting ``subsection (i), section 1927, or
section 1860D-14B''.
(2) Excluding part d drug inflation rebate from best
price.--Section 1927(c)(1)(C)(ii)(I) of the Social Security Act
(42 U.S.C. 1396r-8(c)(1)(C)(ii)(I)), as amended by section
11101(c)(2), is amended by striking ``or section 1847A(i)'' and
inserting ``, section 1847A(i), or section 1860D-14B''.
[[Page 136 STAT. 1877]]
(3) Coordination with medicaid rebate information
disclosure.--Section 1927(b)(3)(D)(i) of the Social Security Act
(42 U.S.C. 1396r-8(b)(3)(D)(i)), as amended by sections 11002(b)
and 11101(c)(3), is amended by striking ``or section 1192(f),
including rebates under paragraph (4) of such section'' and
inserting ``, section 1192(f), including rebates under paragraph
(4) of such section, or section 1860D-14B''.
(4) Excluding part d drug inflation rebates from average
manufacturer price.--Section 1927(k)(1)(B)(i) of the Social
Security Act (42 U.S.C. 1396r-8(k)(1)(B)(i)), as amended by
section 11001(b)(3) and section 11101(c)(4), is amended by
adding at the end the following new subclause:
(A) in subclause (VI), by striking ``and'' at the
end;
(B) in subclause (VII), by striking the period at
the end and inserting a semicolon; and
(C) by adding at the end the following new
subclause:
``(VIII) rebates paid by
manufacturers under section 1860D-
14B.''.
(c) <<NOTE: Time periods.>> Funding.--In addition to amounts
otherwise available, there are appropriated to the Centers for Medicare
& Medicaid Services, out of any money in the Treasury not otherwise
appropriated, $80,000,000 for fiscal year 2022, including $12,500,000 to
carry out the provisions of, including the amendments made by, this
section in fiscal year 2022, and $7,500,000 to carry out the provisions
of, including the amendments made by, this section in each of fiscal
years 2023 through 2031, to remain available until expended.
PART 3--PART D IMPROVEMENTS AND MAXIMUM OUT-OF-POCKET CAP FOR MEDICARE
BENEFICIARIES
SEC. 11201. <<NOTE: Time periods.>> MEDICARE PART D BENEFIT
REDESIGN.
(a) Benefit Structure Redesign.--Section 1860D-2(b) of the Social
Security Act (42 U.S.C. 1395w-102(b)) is amended--
(1) in paragraph (2)--
(A) in subparagraph (A), in the matter preceding
clause (i), by inserting ``for a year preceding 2025 and
for costs above the annual deductible specified in
paragraph (1) and up to the annual out-of-pocket
threshold specified in paragraph (4)(B) for 2025 and
each subsequent year'' after ``paragraph (3)'';
(B) in subparagraph (C)--
(i) in clause (i), in the matter preceding
subclause (I), by inserting ``for a year preceding
2025,'' after ``paragraph (4),''; and
(ii) in clause (ii)(III), by striking ``and
each subsequent year'' and inserting ``through
2024''; and
(C) in subparagraph (D)--
(i) in clause (i)--
(I) in the matter preceding
subclause (I), by inserting ``for a year
preceding 2025,'' after ``paragraph
(4),''; and
(II) in subclause (I)(bb), by
striking ``a year after 2018'' and
inserting ``each of years 2019 through
2024''; and
[[Page 136 STAT. 1878]]
(ii) in clause (ii)(V), by striking ``2019 and
each subsequent year'' and inserting ``each of
years 2019 through 2024'';
(2) in paragraph (3)(A)--
(A) in the matter preceding clause (i), by inserting
``for a year preceding 2025,'' after ``and (4),''; and
(B) in clause (ii), by striking ``for a subsequent
year'' and inserting ``for each of years 2007 through
2024''; and
(3) in paragraph (4)--
(A) in subparagraph (A)--
(i) in clause (i)--
(I) by redesignating subclauses (I)
and (II) as items (aa) and (bb),
respectively, and moving the margin of
each such redesignated item 2 ems to the
right;
(II) in the matter preceding item
(aa), as redesignated by subclause (I),
by striking ``is equal to the greater
of--'' and inserting ``is equal to--
``(I) for a year preceding 2024, the
greater of--'';
(III) by striking the period at the
end of item (bb), as redesignated by
subclause (I), and inserting ``; and'';
and
(IV) by adding at the end the
following:
``(II) for 2024 and each succeeding
year, $0.''; and
(ii) in clause (ii)--
(I) by striking ``clause (i)(I)''
and inserting ``clause (i)(I)(aa)''; and
(II) by adding at the end the
following new sentence: ``The Secretary
shall continue to calculate the dollar
amounts specified in clause (i)(I)(aa),
including with the adjustment under this
clause, after 2023 for purposes of
section 1860D-14(a)(1)(D)(iii).'';
(B) in subparagraph (B)--
(i) in clause (i)--
(I) in subclause (V), by striking
``or'' at the end;
(II) in subclause (VI)--
(aa) by striking ``for a
subsequent year'' and inserting
``for each of years 2021 through
2024''; and
(bb) by striking the period
at the end and inserting a
semicolon; and
(III) by adding at the end the
following new subclauses:
``(VII) for 2025, is equal to
$2,000; or
``(VIII) for a subsequent year, is
equal to the amount specified in this
subparagraph for the previous year,
increased by the annual percentage
increase described in paragraph (6) for
the year involved.''; and
(ii) in clause (ii), by striking ``clause
(i)(II)'' and inserting ``clause (i)'';
(C) in subparagraph (C)--
[[Page 136 STAT. 1879]]
(i) in clause (i), by striking ``and for
amounts'' and inserting ``and, for a year
preceding 2025, for amounts''; and
(ii) in clause (iii)--
(I) by redesignating subclauses (I)
through (IV) as items (aa) through (dd)
and indenting appropriately;
(II) by striking ``if such costs are
borne or paid'' and inserting ``if such
costs--
``(I) are borne or paid--''; and
(III) in item (dd), by striking the
period at the end and inserting ``;
or''; and
(IV) by adding at the end the
following new subclause:
``(II) for 2025 and subsequent
years, are reimbursed through insurance,
a group health plan, or certain other
third party payment arrangements, but
not including the coverage provided by a
prescription drug plan or an MA-PD plan
that is basic prescription drug coverage
(as defined in subsection (a)(3)) or any
payments by a manufacturer under the
manufacturer discount program under
section 1860D-14C.''; and
(D) in subparagraph (E), by striking ``In applying''
and inserting ``For each of years 2011 through 2024, in
applying''.
(b) Reinsurance Payment Amount.--Section 1860D-15(b) of the Social
Security Act (42 U.S.C. 1395w-115(b)) is amended--
(1) in paragraph (1)--
(A) by striking ``equal to 80 percent'' and
inserting ``equal to--
``(A) for a year preceding 2025, 80 percent'';
(B) in subparagraph (A), as added by subparagraph
(A), by striking the period at the end and inserting ``;
and''; and
(C) by adding at the end the following new
subparagraph:
``(B) for 2025 and each subsequent year, the sum
of--
``(i) with respect to applicable drugs (as
defined in section 1860D-14C(g)(2)), an amount
equal to 20 percent of such allowable reinsurance
costs attributable to that portion of gross
covered prescription drug costs as specified in
paragraph (3) incurred in the coverage year after
such individual has incurred costs that exceed the
annual out-of-pocket threshold specified in
section 1860D-2(b)(4)(B); and
``(ii) with respect to covered part D drugs
that are not applicable drugs (as so defined), an
amount equal to 40 percent of such allowable
reinsurance costs attributable to that portion of
gross covered prescription drug costs as specified
in paragraph (3) incurred in the coverage year
after such individual has incurred costs that
exceed the annual out-of-pocket threshold
specified in section 1860D-2(b)(4)(B).'';
(2) in paragraph (2)--
(A) by striking ``COSTS.--For purposes'' and
inserting ``Costs.--
[[Page 136 STAT. 1880]]
``(A) In general.--Subject to subparagraph (B), for
purposes''; and
(B) by adding at the end the following new
subparagraph:
``(B) Inclusion of manufacturer discounts on
applicable drugs. <<NOTE: Definition.>> --For purposes
of applying subparagraph (A), the term `allowable
reinsurance costs' shall include the portion of the
negotiated price (as defined in section 1860D-14C(g)(6))
of an applicable drug (as defined in section 1860D-
14C(g)(2)) that was paid by a manufacturer under the
manufacturer discount program under section 1860D-
14C.''; and
(3) in paragraph (3)--
(A) in the first sentence, by striking ``For
purposes'' and inserting ``Subject to paragraph (2)(B),
for purposes''; and
(B) in the second sentence, by inserting ``(or, with
respect to 2025 and subsequent years, in the case of an
applicable drug, as defined in section 1860D-14C(g)(2),
by a manufacturer)'' after ``by the individual or under
the plan''.
(c) Manufacturer Discount Program.--
(1) In general.--Part D of title XVIII of the Social
Security Act (42 U.S.C. 1395w-101 through 42 U.S.C. 1395w-153),
as amended by section 11102, is amended by inserting after
section 1860D-14B the following new sections:
``SEC. 1860D-14C. <<NOTE: 42 USC 1395w-114c.>> MANUFACTURER
DISCOUNT PROGRAM.
``(a) Establishment.--The Secretary shall establish a manufacturer
discount program (in this section referred to as the `program'). Under
the program, the Secretary shall enter into agreements described in
subsection (b) with manufacturers and provide for the performance of the
duties described in subsection (c).
``(b) Terms of Agreement.--
``(1) In general.--
``(A) <<NOTE: Effective date.>> Agreement.--An
agreement under this section shall require the
manufacturer to provide, in accordance with this
section, discounted prices for applicable drugs of the
manufacturer that are dispensed to applicable
beneficiaries on or after January 1, 2025.
``(B) Clarification.--Nothing in this section shall
be construed as affecting--
``(i) the application of a coinsurance of 25
percent of the negotiated price, as applied under
paragraph (2)(A) of section 1860D-2(b), for costs
described in such paragraph; or
``(ii) the application of the copayment amount
described in paragraph (4)(A) of such section,
with respect to costs described in such paragraph.
``(C) <<NOTE: Deadlines.>> Timing of agreement.--
``(i) Special rule for 2025.--In order for an
agreement with a manufacturer to be in effect
under this section with respect to the period
beginning on January 1, 2025, and ending on
December 31, 2025, the manufacturer shall enter
into such agreement not later than March 1, 2024.
[[Page 136 STAT. 1881]]
``(ii) 2026 and subsequent years.--In order
for an agreement with a manufacturer to be in
effect under this section with respect to plan
year 2026 or a subsequent plan year, the
manufacturer shall enter into such agreement not
later than a calendar quarter or semi-annual
deadline established by the Secretary.
``(2) <<NOTE: Determination.>> Provision of appropriate
data.--Each manufacturer with an agreement in effect under this
section shall collect and have available appropriate data, as
determined by the Secretary, to ensure that it can demonstrate
to the Secretary compliance with the requirements under the
program.
``(3) Compliance with requirements for administration of
program.--Each manufacturer with an agreement in effect under
this section shall comply with requirements imposed by the
Secretary, as applicable, for purposes of administering the
program, including any determination under subparagraph (A) of
subsection (c)(1) or procedures established under such
subsection (c)(1).
``(4) Length of agreement.--
``(A) In general.--An agreement under this section
shall be effective for an initial period of not less
than 12 months and shall be automatically renewed for a
period of not less than 1 year unless terminated under
subparagraph (B).
``(B) Termination.--
``(i) By the secretary.--The Secretary shall
provide for termination of an agreement under this
section for a knowing and willful violation of the
requirements of the agreement or other good cause
shown. <<NOTE: Time period.>> Such termination
shall not be effective earlier than 30 days after
the date of notice to the manufacturer of such
termination. <<NOTE: Hearings.>> The Secretary
shall provide, upon request, a manufacturer with a
hearing concerning such a termination, and such
hearing shall take place prior to the effective
date of the termination with sufficient time for
such effective date to be repealed if the
Secretary determines appropriate.
``(ii) By a manufacturer.--A manufacturer may
terminate an agreement under this section for any
reason. <<NOTE: Effective dates.>> Any such
termination shall be effective, with respect to a
plan year--
``(I) if the termination occurs
before January 31 of a plan year, as of
the day after the end of the plan year;
and
``(II) if the termination occurs on
or after January 31 of a plan year, as
of the day after the end of the
succeeding plan year.
``(iii) Effectiveness of termination.--Any
termination under this subparagraph shall not
affect discounts for applicable drugs of the
manufacturer that are due under the agreement
before the effective date of its termination.
``(5) Effective date of agreement.--An agreement under this
section shall take effect at the start of a calendar quarter or
another date specified by the Secretary.
``(c) Duties Described.--The duties described in this subsection are
the following:
[[Page 136 STAT. 1882]]
``(1) Administration of program.--Administering the program,
including--
``(A) the determination of the amount of the
discounted price of an applicable drug of a
manufacturer;
``(B) the establishment of procedures to ensure
that, not later than the applicable number of calendar
days after the dispensing of an applicable drug by a
pharmacy or mail order service, the pharmacy or mail
order service is reimbursed for an amount equal to the
difference between--
``(i) the negotiated price of the applicable
drug; and
``(ii) the discounted price of the applicable
drug;
``(C) the establishment of procedures to ensure that
the discounted price for an applicable drug under this
section is applied before any coverage or financial
assistance under other health benefit plans or programs
that provide coverage or financial assistance for the
purchase or provision of prescription drug coverage on
behalf of applicable beneficiaries as specified by the
Secretary; and
``(D) providing a reasonable dispute resolution
mechanism to resolve disagreements between
manufacturers, prescription drug plans and MA-PD plans,
and the Secretary.
``(2) Monitoring compliance.--The Secretary shall monitor
compliance by a manufacturer with the terms of an agreement
under this section.
``(3) Collection of data from prescription drug plans and
ma-pd plans.--The Secretary may collect appropriate data from
prescription drug plans and MA-PD plans in a timeframe that
allows for discounted prices to be provided for applicable drugs
under this section.
``(d) Administration.--
``(1) In general.--Subject to paragraph (2), the Secretary
shall provide for the implementation of this section, including
the performance of the duties described in subsection (c).
``(2) Limitation.--In providing for the implementation of
this section, the Secretary shall not receive or distribute any
funds of a manufacturer under the program.
``(e) Civil Money Penalty.--
``(1) <<NOTE: Determination.>> In general.--A manufacturer
that fails to provide discounted prices for applicable drugs of
the manufacturer dispensed to applicable beneficiaries in
accordance with an agreement in effect under this section shall
be subject to a civil money penalty for each such failure in an
amount the Secretary determines is equal to the sum of--
``(A) the amount that the manufacturer would have
paid with respect to such discounts under the agreement,
which will then be used to pay the discounts which the
manufacturer had failed to provide; and
``(B) 25 percent of such amount.
``(2) Application.--The provisions of section 1128A (other
than subsections (a) and (b)) shall apply to a civil money
penalty under this subsection in the same manner as such
provisions apply to a penalty or proceeding under section
1128A(a).
[[Page 136 STAT. 1883]]
``(f) Clarification Regarding Availability of Other Covered Part D
Drugs.--Nothing in this section shall prevent an applicable beneficiary
from purchasing a covered part D drug that is not an applicable drug
(including a generic drug or a drug that is not on the formulary of the
prescription drug plan or MA-PD plan that the applicable beneficiary is
enrolled in).
``(g) Definitions.--In this section:
``(1) Applicable beneficiary.--The term `applicable
beneficiary' means an individual who, on the date of dispensing
a covered part D drug--
``(A) is enrolled in a prescription drug plan or an
MA-PD plan;
``(B) is not enrolled in a qualified retiree
prescription drug plan; and
``(C) has incurred costs, as determined in
accordance with section 1860D-2(b)(4)(C), for covered
part D drugs in the year that exceed the annual
deductible specified in section 1860D-2(b)(1).
``(2) Applicable drug.--The term `applicable drug', with
respect to an applicable beneficiary--
``(A) means a covered part D drug--
``(i) approved under a new drug application
under section 505(c) of the Federal Food, Drug,
and Cosmetic Act or, in the case of a biologic
product, licensed under section 351 of the Public
Health Service Act; and
``(ii)(I) if the PDP sponsor of the
prescription drug plan or the MA organization
offering the MA-PD plan uses a formulary, which is
on the formulary of the prescription drug plan or
MA-PD plan that the applicable beneficiary is
enrolled in;
``(II) if the PDP sponsor of the prescription
drug plan or the MA organization offering the MA-
PD plan does not use a formulary, for which
benefits are available under the prescription drug
plan or MA-PD plan that the applicable beneficiary
is enrolled in; or
``(III) is provided through an exception or
appeal; and
``(B) does not include a selected drug (as referred
to under section 1192(c)) during a price applicability
period (as defined in section 1191(b)(2)) with respect
to such drug.
``(3) Applicable number of calendar days.--The term
`applicable number of calendar days' means--
``(A) with respect to claims for reimbursement
submitted electronically, 14 days; and
``(B) with respect to claims for reimbursement
submitted otherwise, 30 days.
``(4) Discounted price.--
``(A) In general.--The term `discounted price'
means, subject to subparagraphs (B) and (C), with
respect to an applicable drug of a manufacturer
dispensed during a year to an applicable beneficiary--
``(i) who has not incurred costs, as
determined in accordance with section 1860D-
2(b)(4)(C), for covered part D drugs in the year
that are equal to or exceed the annual out-of-
pocket threshold specified in section 1860D-
2(b)(4)(B)(i) for the year, 90 percent of the
negotiated price of such drug; and
[[Page 136 STAT. 1884]]
``(ii) who has incurred such costs, as so
determined, in the year that are equal to or
exceed such threshold for the year, 80 percent of
the negotiated price of such drug.
``(B) Phase-in for certain drugs dispensed to lis
beneficiaries.--
``(i) In general.--In the case of an
applicable drug of a specified manufacturer (as
defined in clause (ii)) that is marketed as of the
date of enactment of this subparagraph and
dispensed for an applicable beneficiary who is a
subsidy eligible individual (as defined in section
1860D-14(a)(3)), the term `discounted price' means
the specified LIS percent (as defined in clause
(iii)) of the negotiated price of the applicable
drug of the manufacturer.
``(ii) Specified manufacturer.--
``(I) In general.--In this
subparagraph, subject to subclause (II),
the term `specified manufacturer' means
a manufacturer of an applicable drug for
which, in 2021--
``(aa) the manufacturer had
a coverage gap discount
agreement under section 1860D-
14A;
``(bb) the total
expenditures for all of the
specified drugs of the
manufacturer covered by such
agreement or agreements for such
year and covered under this part
during such year represented
less than 1.0 percent of the
total expenditures under this
part for all covered Part D
drugs during such year; and
``(cc) the total
expenditures for all of the
specified drugs of the
manufacturer that are single
source drugs and biological
products for which payment may
be made under part B during such
year represented less than 1.0
percent of the total
expenditures under part B for
all drugs or biological products
for which payment may be made
under such part during such
year.
``(II) Specified drugs.--
``(aa) In general.--For
purposes of this clause, the
term `specified drug' means,
with respect to a specified
manufacturer, for 2021, an
applicable drug that is
produced, prepared, propagated,
compounded, converted, or
processed by the manufacturer.
``(bb) Aggregation rule.--
All persons treated as a single
employer under subsection (a) or
(b) of section 52 of the
Internal Revenue Code of 1986
shall be treated as one
manufacturer for purposes of
this
subparagraph. <<NOTE: Determinati
on. Requirement. Attestation.>>
For purposes of making a
determination pursuant to the
previous sentence, an agreement
under this section shall require
that a manufacturer provide and
attest to such information as
specified by the Secretary as
necessary.
``(III) <<NOTE: Time
periods. Effective dates.>>
Limitation.--The term `specified
manufacturer' shall not include a
manufacturer
[[Page 136 STAT. 1885]]
described in subclause (I) if such
manufacturer is acquired after 2021 by
another manufacturer that is not a
specified manufacturer, effective at the
beginning of the plan year immediately
following such acquisition or, in the
case of an acquisition before 2025,
effective January 1, 2025.
``(iii) Specified lis percent.--In this
subparagraph, the `specified LIS percent' means,
with respect to a year--
``(I) for an applicable drug
dispensed for an applicable beneficiary
described in clause (i) who has not
incurred costs, as determined in
accordance with section 1860D-
2(b)(4)(C), for covered part D drugs in
the year that are equal to or exceed the
annual out-of-pocket threshold specified
in section 1860D-2(b)(4)(B)(i) for the
year--
``(aa) for 2025, 99 percent;
``(bb) for 2026, 98 percent;
``(cc) for 2027, 95 percent;
``(dd) for 2028, 92 percent;
and
``(ee) for 2029 and each
subsequent year, 90 percent; and
``(II) for an applicable drug
dispensed for an applicable beneficiary
described in clause (i) who has incurred
costs, as determined in accordance with
section 1860D-2(b)(4)(C), for covered
part D drugs in the year that are equal
to or exceed the annual out-of-pocket
threshold specified in section 1860D-
2(b)(4)(B)(i) for the year--
``(aa) for 2025, 99 percent;
``(bb) for 2026, 98 percent;
``(cc) for 2027, 95 percent;
``(dd) for 2028, 92 percent;
``(ee) for 2029, 90 percent;
``(ff) for 2030, 85 percent;
and
``(gg) for 2031 and each
subsequent year, 80 percent.
``(C) Phase-in for specified small manufacturers.--
``(i) In general.--In the case of an
applicable drug of a specified small manufacturer
(as defined in clause (ii)) that is marketed as of
the date of enactment of this subparagraph and
dispensed for an applicable beneficiary, the term
`discounted price' means the specified small
manufacturer percent (as defined in clause (iii))
of the negotiated price of the applicable drug of
the manufacturer.
``(ii) Specified small manufacturer.--
``(I) In general.--In this
subparagraph, subject to subclause
(III), the term `specified small
manufacturer' means a manufacturer of an
applicable drug for which, in 2021--
``(aa) the manufacturer is a
specified manufacturer (as
defined in subparagraph
(B)(ii)); and
[[Page 136 STAT. 1886]]
``(bb) the total
expenditures under part D for
any one of the specified small
manufacturer drugs of the
manufacturer that are covered by
the agreement or agreements
under section 1860D-14A of such
manufacturer for such year and
covered under this part during
such year are equal to or more
than 80 percent of the total
expenditures under this part for
all specified small manufacturer
drugs of the manufacturer that
are covered by such agreement or
agreements for such year and
covered under this part during
such year.
``(II) Specified small manufacturer
drugs.--
``(aa) In general.--For
purposes of this clause, the
term `specified small
manufacturer drugs' means, with
respect to a specified small
manufacturer, for 2021, an
applicable drug that is
produced, prepared, propagated,
compounded, converted, or
processed by the manufacturer.
``(bb) Aggregation rule.--
All persons treated as a single
employer under subsection (a) or
(b) of section 52 of the
Internal Revenue Code of 1986
shall be treated as one
manufacturer for purposes of
this subparagraph. For purposes
of making a determination
pursuant to the previous
sentence, an agreement under
this section shall require that
a manufacturer provide and
attest to such information as
specified by the Secretary as
necessary.
``(III) Limitation.--The term
`specified small manufacturer' shall not
include a manufacturer described in
subclause (I) if such manufacturer is
acquired after 2021 by another
manufacturer that is not a specified
small manufacturer, effective at the
beginning of the plan year immediately
following such acquisition or, in the
case of an acquisition before 2025,
effective January 1, 2025.
``(iii) Specified small manufacturer
percent.--In this subparagraph, the term
`specified small manufacturer percent' means, with
respect to a year--
``(I) for an applicable drug
dispensed for an applicable beneficiary
who has not incurred costs, as
determined in accordance with section
1860D-2(b)(4)(C), for covered part D
drugs in the year that are equal to or
exceed the annual out-of-pocket
threshold specified in section 1860D-
2(b)(4)(B)(i) for the year--
``(aa) for 2025, 99 percent;
``(bb) for 2026, 98 percent;
``(cc) for 2027, 95 percent;
``(dd) for 2028, 92 percent;
and
``(ee) for 2029 and each
subsequent year, 90 percent; and
``(II) for an applicable drug
dispensed for an applicable beneficiary
who has incurred costs, as
[[Page 136 STAT. 1887]]
determined in accordance with section
1860D-2(b)(4)(C), for covered part D
drugs in the year that are equal to or
exceed the annual out-of-pocket
threshold specified in section 1860D-
2(b)(4)(B)(i) for the year--
``(aa) for 2025, 99 percent;
``(bb) for 2026, 98 percent;
``(cc) for 2027, 95 percent;
``(dd) for 2028, 92 percent;
``(ee) for 2029, 90 percent;
``(ff) for 2030, 85 percent;
and
``(gg) for 2031 and each
subsequent year, 80 percent.
``(D) Total expenditures.--For purposes of this
paragraph, the term `total expenditures' includes, in
the case of expenditures with respect to part D, the
total gross covered prescription drug costs as defined
in section 1860D-15(b)(3). The term `total expenditures'
excludes, in the case of expenditures with respect to
part B, expenditures for a drug or biological that are
bundled or packaged into the payment for another
service.
``(E) Special case for certain claims.--
``(i) Claims spanning deductible.--In the case
where the entire amount of the negotiated price of
an individual claim for an applicable drug with
respect to an applicable beneficiary does not fall
above the annual deductible specified in section
1860D-2(b)(1) for the year, the manufacturer of
the applicable drug shall provide the discounted
price under this section on only the portion of
the negotiated price of the applicable drug that
falls above such annual deductible.
``(ii) Claims spanning out-of-pocket
threshold.--In the case where the entire amount of
the negotiated price of an individual claim for an
applicable drug with respect to an applicable
beneficiary does not fall entirely below or
entirely above the annual out-of-pocket threshold
specified in section 1860D-2(b)(4)(B)(i) for the
year, the manufacturer of the applicable drug
shall provide the discounted price--
``(I) in accordance with
subparagraph (A)(i) on the portion of
the negotiated price of the applicable
drug that falls below such threshold;
and
``(II) in accordance with
subparagraph (A)(ii) on the portion of
such price of such drug that falls at or
above such threshold.
``(5) Manufacturer.--The term `manufacturer' means any
entity which is engaged in the production, preparation,
propagation, compounding, conversion, or processing of
prescription drug products, either directly or indirectly by
extraction from substances of natural origin, or independently
by means of chemical synthesis, or by a combination of
extraction and chemical synthesis. Such term does not include a
wholesale distributor of drugs or a retail pharmacy licensed
under State law.
``(6) Negotiated price.--The term `negotiated price' has the
meaning given such term for purposes of section 1860D-
[[Page 136 STAT. 1888]]
2(d)(1)(B), and, with respect to an applicable drug, such
negotiated price shall include any dispensing fee and, if
applicable, any vaccine administration fee for the applicable
drug.
``(7) Qualified retiree prescription drug plan.--The term
`qualified retiree prescription drug plan' has the meaning given
such term in section 1860D-22(a)(2).
``SEC. 1860D-14D. <<NOTE: 42 USC 1395w-114d.>> SELECTED DRUG
SUBSIDY PROGRAM.
``With respect to covered part D drugs that would be applicable
drugs (as defined in section 1860D-14C(g)(2)) but for the application of
subparagraph (B) of such section, the Secretary shall provide a process
whereby, in the case of an applicable beneficiary (as defined in section
1860D-14C(g)(1)) who, with respect to a year, is enrolled in a
prescription drug plan or is enrolled in an MA-PD plan, has not incurred
costs that are equal to or exceed the annual out-of-pocket threshold
specified in section 1860D-2(b)(4)(B)(i), and is dispensed such a drug,
the Secretary (periodically and on a timely basis) provides the PDP
sponsor or the MA organization offering the plan, a subsidy with respect
to such drug that is equal to 10 percent of the negotiated price (as
defined in section 1860D-14C(g)(6)) of such drug.''.
(2) Sunset of medicare coverage gap discount program.--
Section 1860D-14A of the Social Security Act (42 U.S.C. 1395w-
114a) is amended--
(A) in subsection (a), in the first sentence, by
striking ``The Secretary'' and inserting ``Subject to
subsection (h), the Secretary''; and
(B) by adding at the end the following new
subsection:
``(h) Sunset of Program.--
``(1) In general.--The program shall not apply with respect
to applicable drugs dispensed on or after January 1, 2025, and,
subject to paragraph (2), agreements under this section shall be
terminated as of such date.
``(2) Continued application for applicable drugs dispensed
prior to sunset.--The provisions of this section (including all
responsibilities and duties) shall continue to apply on and
after January 1, 2025, with respect to applicable drugs
dispensed prior to such date.''.
(3) Selected drug subsidy payments from medicare
prescription drug account.--Section 1860D-16(b)(1) of the Social
Security Act (42 U.S.C. 1395w-116(b)(1)) is amended--
(A) in subparagraph (C), by striking ``and'' at the
end;
(B) in subparagraph (D), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following new
subparagraph:
``(E) payments under section 1860D-14D (relating to
selected drug subsidy payments).''.
(d) Medicare Part D Premium Stabilization.--
(1) 2024 through 2029.--Section 1860D-13 of the Social
Security Act (42 U.S.C. 1395w-113) is amended--
(A) in subsection (a)--
(i) in paragraph (1)(A), by inserting ``or (8)
(as applicable)'' after ``paragraph (2)'';
(ii) in paragraph (2), in the matter preceding
subparagraph (A), by striking ``The base'' and
inserting ``Subject to paragraph (8), the base'';
[[Page 136 STAT. 1889]]
(iii) in paragraph (7)--
(I) in subparagraph (B)(ii), by
inserting ``or (8) (as applicable)''
after ``paragraph (2)''; and
(II) in subparagraph (E)(i), by
inserting ``or (8) (as applicable)''
after ``paragraph (2)''; and
(iv) by adding at the end the following new
paragraph:
``(8) <<NOTE: Time period.>> Premium stabilization.--
``(A) In general.--The base beneficiary premium
under this paragraph for a prescription drug plan for a
month in 2024 through 2029 shall be computed as follows:
``(i) 2024.--The base beneficiary premium for
a month in 2024 shall be equal to the lesser of--
``(I) the base beneficiary premium
computed under paragraph (2) for a month
in 2023 increased by 6 percent; or
``(II) the base beneficiary premium
computed under paragraph (2) for a month
in 2024 that would have applied if this
paragraph had not been enacted.
``(ii) 2025.--The base beneficiary premium for
a month in 2025 shall be equal to the lesser of--
``(I) the base beneficiary premium
computed under clause (i) for a month in
2024 increased by 6 percent; or
``(II) the base beneficiary premium
computed under paragraph (2) for a month
in 2025 that would have applied if this
paragraph had not been enacted.
``(iii) 2026.--The base beneficiary premium
for a month in 2026 shall be equal to the lesser
of--
``(I) the base beneficiary premium
computed under clause (ii) for a month
in 2025 increased by 6 percent; or
``(II) the base beneficiary premium
computed under paragraph (2) for a month
in 2026 that would have applied if this
paragraph had not been enacted.
``(iv) 2027.--The base beneficiary premium for
a month in 2027 shall be equal to the lesser of--
``(I) the base beneficiary premium
computed under clause (iii) for a month
in 2026 increased by 6 percent; or
``(II) the base beneficiary premium
computed under paragraph (2) for a month
in 2027 that would have applied if this
paragraph had not been enacted.
``(v) 2028.--The base beneficiary premium for
a month in 2028 shall be equal to the lesser of--
``(I) the base beneficiary premium
computed under clause (iv) for a month
in 2027 increased by 6 percent; or
``(II) the base beneficiary premium
computed under paragraph (2) for a month
in 2028 that would have applied if this
paragraph had not been enacted.
[[Page 136 STAT. 1890]]
``(vi) 2029.--The base beneficiary premium for
a month in 2029 shall be equal to the lesser of--
``(I) the base beneficiary premium
computed under clause (v) for a month in
2028 increased by 6 percent; or
``(II) the base beneficiary premium
computed under paragraph (2) for a month
in 2029 that would have applied if this
paragraph had not been enacted.
``(B) Clarification regarding 2030 and subsequent
years.--The base beneficiary premium for a month in 2030
or a subsequent year shall be computed under paragraph
(2) without regard to this paragraph.''; and
(B) in subsection (b)(3)(A)(ii), by striking
``subsection (a)(2)'' and inserting ``paragraph (2) or
(8) of subsection (a) (as applicable)''.
(2) Adjustment to beneficiary premium percentage for 2030
and subsequent years.--Section 1860D-13(a) of the Social
Security Act (42 U.S.C. 1395w-113(a)), as amended by paragraph
(1), is amended--
(A) in paragraph (3)(A), by inserting ``(or, for
2030 and each subsequent year, the percent specified
under paragraph (9))'' after ``25.5 percent''; and
(B) by adding at the end the following new
paragraph:
``(9) <<NOTE: Time periods.>> Percent specified.--
``(A) <<NOTE: Determination.>> In general.--Subject
to subparagraph (B), for purposes of paragraph (3)(A),
the percent specified under this paragraph for 2030 and
each subsequent year is the percent that the Secretary
determines is necessary to ensure that the base
beneficiary premium computed under paragraph (2) for a
month in 2030 is equal to the lesser of--
``(i) the base beneficiary premium computed
under paragraph (8)(A)(vi) for a month in 2029
increased by 6 percent; or
``(ii) the base beneficiary premium computed
under paragraph (2) for a month in 2030 that would
have applied if this paragraph had not been
enacted.
``(B) Floor.--The percent specified under
subparagraph (A) may not be less than 20 percent.''.
(3) Conforming amendments.--
(A) Section 1854(b)(2)(B) of the Social Security Act
42 U.S.C. 1395w-24(b)(2)(B)) is amended by striking
``section 1860D-13(a)(2)'' and inserting ``paragraph (2)
or (8) (as applicable) of section 1860D-13(a)''.
(B) Section 1860D-11(g)(6) of the Social Security
Act (42 U.S.C. 1395w-111(g)(6)) is amended by inserting
``(or, for 2030 and each subsequent year, the percent
specified under section 1860D-13(a)(9))'' after ``25.5
percent''.
(C) Section 1860D-13(a)(7)(B)(i) of the Social
Security Act (42 U.S.C. 1395w-113(a)(7)(B)(i)) is
amended--
(i) in subclause (I), by inserting ``(or, for
2030 and each subsequent year, the percent
specified under paragraph (9))'' after ``25.5
percent''; and
(ii) in subclause (II), by inserting ``(or,
for 2030 and each subsequent year, the percent
specified under paragraph (9))'' after ``25.5
percent''.
[[Page 136 STAT. 1891]]
(D) Section 1860D-15(a) of the Social Security Act
(42 U.S.C. 1395w-115(a)) is amended--
(i) in the matter preceding paragraph (1), by
inserting ``(or, for each of 2024 through 2029,
the percent applicable as a result of the
application of section 1860D-13(a)(8), or, for
2030 and each subsequent year, 100 percent minus
the percent specified under section 1860D-
13(a)(9))'' after ``74.5 percent''; and
(ii) in paragraph (1)(B), by striking
``paragraph (2) of section 1860D-13(a)'' and
inserting ``paragraph (2) or (8) of section 1860D-
13(a) (as applicable)''.
(e) <<NOTE: Time periods.>> Conforming Amendments.--
(1) Section 1860D-2 of the Social Security Act (42 U.S.C.
1395w-102) is amended--
(A) in subsection (a)(2)(A)(i)(I), by striking ``,
or an increase in the initial'' and inserting ``or, for
a year preceding 2025, an increase in the initial'';
(B) in subsection (c)(1)(C)--
(i) in the subparagraph heading, by striking
``at initial coverage limit''; and
(ii) by inserting ``for a year preceding 2025
or the annual out-of-pocket threshold specified in
subsection (b)(4)(B) for the year for 2025 and
each subsequent year'' after ``subsection (b)(3)
for the year'' each place it appears; and
(C) in subsection (d)(1)(A), by striking ``or an
initial'' and inserting ``or, for a year preceding 2025,
an initial''.
(2) Section 1860D-4(a)(4)(B)(i) of the Social Security Act
(42 U.S.C. 1395w-104(a)(4)(B)(i)) is amended by striking ``the
initial'' and inserting ``for a year preceding 2025, the
initial''.
(3) Section 1860D-14(a) of the Social Security Act (42
U.S.C. 1395w-114(a)) is amended--
(A) in paragraph (1)--
(i) in subparagraph (C), by striking ``The
continuation'' and inserting ``For a year
preceding 2025, the continuation'';
(ii) in subparagraph (D)(iii), by striking
``1860D-2(b)(4)(A)(i)(I)'' and inserting ``1860D-
2(b)(4)(A)(i)(I)(aa)''; and
(iii) in subparagraph (E), by striking ``The
elimination'' and inserting ``For a year preceding
2024, the elimination''; and
(B) in paragraph (2)(E), by striking ``1860D-
2(b)(4)(A)(i)(I)'' and inserting ``1860D-
2(b)(4)(A)(i)(I)(aa)''.
(4) Section 1860D-21(d)(7) of the Social Security Act (42
U.S.C. 1395w-131(d)(7)) is amended by striking ``section 1860D-
2(b)(4)(B)(i)'' and inserting ``section 1860D-2(b)(4)(C)(i)''.
(5) Section 1860D-22(a)(2)(A) of the Social Security Act (42
U.S.C. 1395w-132(a)(2)(A)) is amended--
(A) by striking ``the value of any discount'' and
inserting the following: ``the value of--
``(i) for years prior to 2025, any discount'';
(B) in clause (i), as inserted by subparagraph (A)
of this paragraph, by striking the period at the end and
inserting ``; and''; and
(C) by adding at the end the following new clause:
[[Page 136 STAT. 1892]]
``(ii) for 2025 and each subsequent year, any
discount provided pursuant to section 1860D-
14C.''.
(6) Section 1860D-41(a)(6) of the Social Security Act (42
U.S.C. 1395w-151(a)(6)) is amended--
(A) by inserting ``for a year before 2025'' after
``1860D-2(b)(3)''; and
(B) by inserting ``for such year'' before the
period.
(7) Section 1860D-43 of the Social Security Act (42 U.S.C.
1395w-153) is amended--
(A) in subsection (a)--
(i) by striking paragraph (1) and inserting
the following:
``(1) participate in--
``(A) for 2011 through 2024, the Medicare coverage
gap discount program under section 1860D-14A; and
``(B) for 2025 and each subsequent year, the
manufacturer discount program under section 1860D-
14C;'';
(ii) by striking paragraph (2) and inserting
the following:
``(2) have entered into and have in effect--
``(A) for 2011 through 2024, an agreement described
in subsection (b) of section 1860D-14A with the
Secretary; and
``(B) for 2025 and each subsequent year, an
agreement described in subsection (b) of section 1860D-
14C with the Secretary; and''; and
(iii) in paragraph (3), by striking ``such
section'' and inserting ``section 1860D-14A''; and
(B) by striking subsection (b) and inserting the
following:
``(b) <<NOTE: Applicability.>> Effective Date.--Paragraphs (1)(A),
(2)(A), and (3) of subsection (a) shall apply to covered part D drugs
dispensed under this part on or after January 1, 2011, and before
January 1, 2025, and paragraphs (1)(B) and (2)(B) of such subsection
shall apply to covered part D drugs dispensed under this part on or
after January 1, 2025.''.
(8) Section 1927 of the Social Security Act (42 U.S.C.
1396r-8) is amended--
(A) in subsection (c)(1)(C)(i)(VI), by inserting
before the period at the end the following: ``or under
the manufacturer discount program under section 1860D-
14C''; and
(B) in subsection (k)(1)(B)(i)(V), by inserting
before the period at the end the following: ``or under
section 1860D-14C''.
(f) <<NOTE: 42 USC 1395w-102 note.>> Implementation for 2024
Through 2026.--The Secretary shall implement this section, including the
amendments made by this section, for 2024, 2025, and 2026 by program
instruction or other forms of program guidance.
(g) <<NOTE: Time periods.>> Funding.--In addition to amounts
otherwise available, there are appropriated to the Centers for Medicare
& Medicaid Services, out of any money in the Treasury not otherwise
appropriated, $341,000,000 for fiscal year 2022, including $20,000,000
and $65,000,000 to carry out the provisions of, including the amendments
made by, this section in fiscal years 2022 and 2023, respectively, and
$32,000,000 to carry out the provisions of, including the amendments
made by, this section in each of fiscal years 2024 through 2031, to
remain available until expended.
[[Page 136 STAT. 1893]]
SEC. 11202. MAXIMUM MONTHLY CAP ON COST-SHARING PAYMENTS UNDER
PRESCRIPTION DRUG PLANS AND MA-PD
PLANS.
(a) In General.--Section 1860D-2(b) of the Social Security Act (42
U.S.C. 1395w-102(b)) is amended--
(1) in paragraph (2)--
(A) in subparagraph (A), by striking ``and (D)'' and
inserting ``, (D), and (E)''; and
(B) by adding at the end the following new
subparagraph:
``(E) Maximum monthly cap on cost-sharing
payments.--
``(i) <<NOTE: Effective date.>> In general.--
For plan years beginning on or after January 1,
2025, each PDP sponsor offering a prescription
drug plan and each MA organization offering an MA-
PD plan shall provide to any enrollee of such
plan, including an enrollee who is a subsidy
eligible individual (as defined in paragraph (3)
of section 1860D-14(a)), the option to elect with
respect to a plan year to pay cost-sharing under
the plan in monthly amounts that are capped in
accordance with this subparagraph.
``(ii) Determination of maximum monthly cap.--
For each month in the plan year for which an
enrollee in a prescription drug plan or an MA-PD
plan has made an election pursuant to clause (i),
the PDP sponsor or MA organization shall determine
a maximum monthly cap (as defined in clause (iv))
for such enrollee.
``(iii) Beneficiary monthly payments.--With
respect to an enrollee who has made an election
pursuant to clause (i), for each month described
in clause (ii), the PDP sponsor or MA organization
shall bill such enrollee an amount (not to exceed
the maximum monthly cap) for the out-of-pocket
costs of such enrollee in such month.
``(iv) Maximum monthly cap defined.--In this
subparagraph, the term `maximum monthly cap'
means, with respect to an enrollee--
``(I) for the first month for which
the enrollee has made an election
pursuant to clause (i), an amount
determined by calculating--
``(aa) the annual out-of-
pocket threshold specified in
paragraph (4)(B) minus the
incurred costs of the enrollee
as described in paragraph
(4)(C); divided by
``(bb) the number of months
remaining in the plan year; and
``(II) for a subsequent month, an
amount determined by calculating--
``(aa) the sum of any
remaining out-of-pocket costs
owed by the enrollee from a
previous month that have not yet
been billed to the enrollee and
any additional out-of-pocket
costs incurred by the enrollee;
divided by
``(bb) the number of months
remaining in the plan year.
[[Page 136 STAT. 1894]]
``(v) <<NOTE: Applicability.>> Additional
requirements.--The following requirements shall
apply with respect to the option to make an
election pursuant to clause (i) under this
subparagraph:
``(I) Secretarial
responsibilities.--The Secretary shall
provide information to part D eligible
individuals on the option to make such
election through educational materials,
including through the notices provided
under section 1804(a).
``(II) Timing of election.--An
enrollee in a prescription drug plan or
an MA-PD plan may make such an
election--
``(aa) prior to the
beginning of the plan year; or
``(bb) in any month during
the plan year.
``(III) Pdp sponsor and ma
organization responsibilities.--Each PDP
sponsor offering a prescription drug
plan or MA organization offering an MA-
PD plan--
``(aa) may not limit the
option for an enrollee to make
such an election to certain
covered part D drugs;
``(bb) <<NOTE: Notification.>>
shall, prior to the plan year,
notify prospective enrollees of
the option to make such an
election in promotional
materials;
``(cc) shall include
information on such option in
enrollee educational materials;
``(dd) <<NOTE: Notification.>>
shall have in place a mechanism
to notify a pharmacy during the
plan year when an enrollee
incurs out-of-pocket costs with
respect to covered part D drugs
that make it likely the enrollee
may benefit from making such an
election;
``(ee) shall provide that a
pharmacy, after receiving a
notification described in item
(dd) with respect to an
enrollee, informs the enrollee
of such notification;
``(ff) shall ensure that
such an election by an enrollee
has no effect on the amount paid
to pharmacies (or the timing of
such payments) with respect to
covered part D drugs dispensed
to the enrollee; and
``(gg) shall have in place a
financial reconciliation process
to correct inaccuracies in
payments made by an enrollee
under this subparagraph with
respect to covered part D drugs
during the plan year.
``(IV) Failure to pay amount
billed.--If an enrollee fails to pay the
amount billed for a month as required
under this subparagraph--
``(aa) the election of the
enrollee pursuant to clause (i)
shall be terminated and the
enrollee shall pay the cost-
sharing otherwise applicable for
any covered part D drugs
subsequently dispensed to the
enrollee up to the annual out-
of-pocket threshold specified in
paragraph (4)(B); and
[[Page 136 STAT. 1895]]
``(bb) the PDP sponsor or MA
organization may preclude the
enrollee from making an election
pursuant to clause (i) in a
subsequent plan year.
``(V) Clarification regarding past
due amounts.--Nothing in this
subparagraph shall be construed as
prohibiting a PDP sponsor or an MA
organization from billing an enrollee
for an amount owed under this
subparagraph.
``(VI) Treatment of unsettled
balances.--Any unsettled balances with
respect to amounts owed under this
subparagraph shall be treated as plan
losses and the Secretary shall not be
liable for any such balances outside of
those assumed as losses estimated in
plan bids.''; and
(2) in paragraph (4)--
(A) in subparagraph (C), by striking ``subparagraph
(E)'' and inserting ``subparagraph (E) or subparagraph
(F)''; and
(B) by adding at the end the following new
subparagraph:
``(F) Inclusion of costs paid under maximum monthly
cap option.--In applying subparagraph (A), with respect
to an enrollee who has made an election pursuant to
clause (i) of paragraph (2)(E), costs shall be treated
as incurred if such costs are paid by a PDP sponsor or
an MA organization under the option provided under such
paragraph.''.
(b) Application to Alternative Prescription Drug Coverage.--Section
1860D-2(c) of the Social Security Act (42 U.S.C. 1395w-102(c)) is
amended by adding at the end the following new paragraph:
``(4) Same maximum monthly cap on cost-sharing.--The maximum
monthly cap on cost-sharing payments shall apply to coverage
with respect to an enrollee who has made an election pursuant to
clause (i) of subsection (b)(2)(E) under the option provided
under such subsection.''.
(c) <<NOTE: 42 USC 1395w-102 note.>> Implementation for 2025.--The
Secretary shall implement this section, including the amendments made by
this section, for 2025 by program instruction or other forms of program
guidance.
(d) <<NOTE: Time period.>> Funding.--In addition to amounts
otherwise available, there are appropriated to the Centers for Medicare
& Medicaid Services, out of any money in the Treasury not otherwise
appropriated, $10,000,000 for fiscal year 2023, to remain available
until expended, to carry out the provisions of, including the amendments
made by, this section.
[[Page 136 STAT. 1896]]
PART 4--CONTINUED DELAY OF IMPLEMENTATION OF PRESCRIPTION DRUG REBATE
RULE
SEC. 11301. <<NOTE: 42 USC 1320a-7b note.>> EXTENSION OF
MORATORIUM ON IMPLEMENTATION OF RULE
RELATING TO ELIMINATING THE ANTI-
KICKBACK STATUTE SAFE HARBOR
PROTECTION FOR PRESCRIPTION DRUG
REBATES.
The <<NOTE: Effective date.>> Secretary of Health and Human
Services shall not, prior to January 1, 2032, implement, administer, or
enforce the provisions of the final rule published by the Office of the
Inspector General of the Department of Health and Human Services on
November 30, 2020, and titled ``Fraud and Abuse; Removal of Safe Harbor
Protection for Rebates Involving Prescription Pharmaceuticals and
Creation of New Safe Harbor Protection for Certain Point-of-Sale
Reductions in Price on Prescription Pharmaceuticals and Certain Pharmacy
Benefit Manager Service Fees'' (85 Fed. Reg. 76666).
PART 5--MISCELLANEOUS
SEC. 11401. COVERAGE OF ADULT VACCINES RECOMMENDED BY THE ADVISORY
COMMITTEE ON IMMUNIZATION PRACTICES
UNDER MEDICARE PART D.
(a) Ensuring Treatment of Cost-sharing and Deductible Is Consistent
With Treatment of Vaccines Under Medicare Part B.--Section 1860D-2 of
the Social Security Act (42 U.S.C. 1395w-102), as amended by sections
11201 and 11202, is amended--
(1) in subsection (b)--
(A) in paragraph (1)(A), by striking ``The
coverage'' and inserting ``Subject to paragraph (8), the
coverage'';
(B) in paragraph (2)--
(i) in subparagraph (A), by inserting ``and
paragraph (8)'' after ``and (E)'';
(ii) in subparagraph (C)(i), in the matter
preceding subclause (I), by striking ``paragraph
(4)'' and inserting ``paragraphs (4) and (8)'';
and
(iii) in subparagraph (D)(i), in the matter
preceding subclause (I), by striking ``paragraph
(4)'' and inserting ``paragraphs (4) and (8)'';
(C) in paragraph (3)(A), in the matter preceding
clause (i), by striking ``and (4)'' and inserting ``(4),
and (8)'';
(D) in paragraph (4)(A)(i), by striking ``The
coverage'' and inserting ``Subject to paragraph (8), the
coverage''; and
(E) by adding at the end the following new
paragraph:
``(8) Treatment of cost-sharing for adult vaccines
recommended by the advisory committee on immunization practices
consistent with treatment of vaccines under part b.--
``(A) <<NOTE: Effective date.>> In general.--For
plan years beginning on or after January 1, 2023, with
respect to an adult vaccine recommended by the Advisory
Committee on Immunization Practices (as defined in
subparagraph (B))--
``(i) the deductible under paragraph (1) shall
not apply; and
[[Page 136 STAT. 1897]]
``(ii) there shall be no coinsurance or other
cost-sharing under this part with respect to such
vaccine.
``(B) Adult vaccines recommended by the advisory
committee on immunization
practices. <<NOTE: Definition.>> --For purposes of this
paragraph, the term `adult vaccine recommended by the
Advisory Committee on Immunization Practices' means a
covered part D drug that is a vaccine licensed under
section 351 of the Public Health Service Act for use by
adult populations and administered in accordance with
recommendations of the Advisory Committee on
Immunization Practices of the Centers for Disease
Control and Prevention.''; and
(2) in subsection (c), by adding at the end the following
new paragraph:
``(5) Treatment of cost-sharing for adult vaccines
recommended by the advisory committee on immunization
practices.--The coverage is in accordance with subsection
(b)(8).''.
(b) Conforming Amendments to Cost-sharing for Low-income
Individuals.--Section 1860D-14(a) of the Social Security Act (42 U.S.C.
1395w-114(a)), as amended by section 11201, is amended--
(1) in paragraph (1)(D), in each of clauses (ii) and (iii),
by striking ``In the case'' and inserting ``Subject to paragraph
(6), in the case'';
(2) in paragraph (2)--
(A) in subparagraph (B), by striking ``A reduction''
and inserting ``Subject to section 1860D-2(b)(8), a
reduction'';
(B) in subparagraph (D), by striking ``The
substitution'' and inserting ``Subject to paragraph (6),
the substitution''; and
(C) in subparagraph (E), by striking ``subsection
(c)'' and inserting ``paragraph (6) of this subsection
and subsection (c)''; and
(3) by adding at the end the following new paragraph:
``(6) No application of cost-sharing or deductible for adult
vaccines recommended by the advisory committee on immunization
practices. <<NOTE: Effective date.>> --For plan years beginning
on or after January 1, 2023, with respect to an adult vaccine
recommended by the Advisory Committee on Immunization Practices
(as defined in section 1860D-2(b)(8)(B))--
``(A) the deductible under section 1860D-2(b)(1)
shall not apply; and
``(B) there shall be no cost-sharing under this
section with respect to such vaccine.''.
(c) Temporary Retrospective Subsidy.--
(1) In general.--Section 1860D-15 of the Social Security Act
(42 U.S.C. 1395w-115) is amended by adding at the end the
following new subsection:
``(h) Temporary Retrospective Subsidy for Reduction in Cost-sharing
and Deductible for Adult Vaccines Recommended by the Advisory Committee
on Immunization Practices During 2023.--
``(1) In general.--In addition to amounts otherwise payable
under this section to a PDP sponsor of a prescription drug plan
or an MA organization offering an MA-PD plan, for plan year
2023, the Secretary shall provide the PDP sponsor
[[Page 136 STAT. 1898]]
or MA organization offering the plan subsidies in an amount
equal to the aggregate reduction in cost-sharing and deductible
by reason of the application of section 1860D-2(b)(8) for
individuals under the plan during the year.
``(2) <<NOTE: Deadline.>> Timing.--The Secretary shall
provide a subsidy under paragraph (1), as applicable, not later
than 18 months following the end of the applicable plan year.''.
(2) Treatment as incurred costs.--Section 1860D-
2(b)(4)(C)(iii)(I) of the Social Security Act (42 U.S.C. 1395w-
102(b)(4)(C)(iii)(I)), as amended by section 11201(a)(3)(C), is
amended--
(A) in item (cc), by striking ``or'' at the end; and
(B) by adding at the end the following new item:
``(dd) under section 1860D-
15(h); or''.
(d) <<NOTE: 42 USC 1395w-102 note.>> Rule of Construction.--Nothing
in this section shall be construed as limiting coverage under part D of
title XVIII of the Social Security Act for vaccines that are not
recommended by the Advisory Committee on Immunization Practices.
(e) <<NOTE: 42 USC 1395w-102 note.>> Implementation for 2023
Through 2025.--The Secretary shall implement this section, including the
amendments made by this section, for 2023, 2024, and 2025, by program
instruction or other forms of program guidance.
SEC. 11402. PAYMENT FOR BIOSIMILAR BIOLOGICAL PRODUCTS DURING
INITIAL PERIOD.
Section 1847A(c)(4) of the Social Security Act (42 U.S.C. 1395w-
3a(c)(4)) is amended--
(1) in each of subparagraphs (A) and (B), by redesignating
clauses (i) and (ii) as subclauses (I) and (II), respectively,
and moving such subclauses 2 ems to the right;
(2) by redesignating subparagraphs (A) and (B) as clauses
(i) and (ii) and moving such clauses 2 ems to the right;
(3) by striking ``unavailable.--In the case'' and inserting
``unavailable.--
``(A) In general.--Subject to subparagraph (B), in
the case''; and
(4) by adding at the end the following new subparagraph:
``(B) Limitation on payment amount for biosimilar
biological products during initial
period. <<NOTE: Effective date.>> --In the case of a
biosimilar biological product furnished on or after July
1, 2024, during the initial period described in
subparagraph (A) with respect to the biosimilar
biological product, the amount payable under this
section for the biosimilar biological product is the
lesser of the following:
``(i) The amount determined under clause (ii)
of such subparagraph for the biosimilar biological
product.
``(ii) The amount determined under subsection
(b)(1)(B) for the reference biological product.''.
SEC. 11403. TEMPORARY INCREASE IN MEDICARE PART B PAYMENT FOR
CERTAIN BIOSIMILAR BIOLOGICAL
PRODUCTS.
Section 1847A(b)(8) of the Social Security Act (42 U.S.C. 1395w-
3a(b)(8)) is amended--
(1) by redesignating subparagraphs (A) and (B) as clauses
(i) and (ii), respectively, and moving the margin of each such
redesignated clause 2 ems to the right;
[[Page 136 STAT. 1899]]
(2) by striking ``product.--The amount'' and inserting the
following: ``product.--
``(A) In general.--Subject to subparagraph (B), the
amount''; and
(3) by adding at the end the following new subparagraph:
``(B) <<NOTE: Time periods.>> Temporary payment
increase.--
``(i) In general.--In the case of a qualifying
biosimilar biological product that is furnished
during the applicable 5-year period for such
product, the amount specified in this paragraph
for such product with respect to such period is
the sum determined under subparagraph (A), except
that clause (ii) of such subparagraph shall be
applied by substituting `8 percent' for `6
percent'.
``(ii) Applicable 5-year period.--For purposes
of clause (i), the applicable 5-year period for a
qualifying biosimilar biological product is--
``(I) <<NOTE: Effective date.>> in
the case of such a product for which
payment was made under this paragraph as
of September 30, 2022, the 5-year period
beginning on October 1, 2022; and
``(II) in the case of such a product
for which payment is first made under
this paragraph during a calendar quarter
during the period beginning October 1,
2022, and ending December 31, 2027, the
5-year period beginning on the first day
of such calendar quarter during which
such payment is first made.
``(iii) Qualifying biosimilar biological
product defined.--For purposes of this
subparagraph, the term `qualifying biosimilar
biological product' means a biosimilar biological
product described in paragraph (1)(C) with respect
to which--
``(I) in the case of a product
described in clause (ii)(I), the average
sales price under paragraph (8)(A)(i)
for a calendar quarter during the 5-year
period described in such clause is not
more than the average sales price under
paragraph (4)(A) for such quarter for
the reference biological product; and
``(II) in the case of a product
described in clause (ii)(II), the
average sales price under paragraph
(8)(A)(i) for a calendar quarter during
the 5-year period described in such
clause is not more than the average
sales price under paragraph (4)(A) for
such quarter for the reference
biological product.''.
SEC. 11404. <<NOTE: Effective date.>> EXPANDING ELIGIBILITY FOR
LOW-INCOME SUBSIDIES UNDER PART D OF
THE MEDICARE PROGRAM.
Section 1860D-14(a) of the Social Security Act (42 U.S.C. 1395w-
114(a)), as amended by sections 11201 and 11401, is amended--
(1) in the subsection heading, by striking ``Individuals''
and all that follows through ``Line'' and inserting ``Certain
Individuals'';
(2) in paragraph (1)--
[[Page 136 STAT. 1900]]
(A) by striking the paragraph heading and inserting
``Individuals with certain low incomes''; and
(B) in the matter preceding subparagraph (A)--
(i) by inserting ``(or, with respect to a plan
year beginning on or after January 1, 2024, 150
percent)'' after ``135 percent''; and
(ii) by inserting ``(or, with respect to a
plan year beginning on or after January 1, 2024,
paragraph (3)(E))'' after ``the resources
requirement described in paragraph (3)(D)''; and
(3) in paragraph (2)--
(A) by striking the paragraph heading and inserting
``Other low-income individuals''; and
(B) in the matter preceding subparagraph (A), by
striking ``In the case of a subsidy'' and inserting
``With respect to a plan year beginning before January
1, 2024, in the case of a subsidy''.
SEC. 11405. IMPROVING ACCESS TO ADULT VACCINES UNDER MEDICAID AND
CHIP.
(a) Medicaid.--
(1) Requiring coverage of adult vaccinations.--
(A) In general.--Section 1902(a)(10)(A) of the
Social Security Act (42 U.S.C. 1396a(a)(10)(A)) is
amended in the matter preceding clause (i) by inserting
``(13)(B),'' after ``(5),''.
(B) Medically needy.--Section 1902(a)(10)(C)(iv) of
such Act (42 U.S.C. 1396a(a)(10)(C)(iv)) is amended by
inserting ``, (13)(B),'' after ``(5)''.
(2) No cost sharing for vaccinations.--
(A) General cost-sharing limitations.--Section 1916
of the Social Security Act (42 U.S.C. 1396o) is
amended--
(i) in subsection (a)(2)--
(I) in subparagraph (G), by
inserting a comma after ``State plan'';
(II) in subparagraph (H), by
striking ``; or'' and inserting a comma;
(III) in subparagraph (I), by
striking ``; and'' and inserting ``,
or''; and
(IV) by adding at the end the
following new subparagraph:
``(J) vaccines described in section 1905(a)(13)(B)
and the administration of such vaccines; and''; and
(ii) in subsection (b)(2)--
(I) in subparagraph (G), by
inserting a comma after ``State plan'';
(II) in subparagraph (H), by
striking ``; or'' and inserting a comma;
(III) in subparagraph (I), by
striking ``; and'' and inserting ``,
or''; and
(IV) by adding at the end the
following new subparagraph:
``(J) vaccines described in section 1905(a)(13)(B)
and the administration of such vaccines; and''.
(B) Application to alternative cost sharing.--
Section 1916A(b)(3)(B) of the Social Security Act (42
U.S.C.
[[Page 136 STAT. 1901]]
1396o-1(b)(3)(B)) is amended by adding at the end the
following new clause:
``(xiv) Vaccines described in section
1905(a)(13)(B) and the administration of such
vaccines.''.
(3) Increased fmap for adult vaccines and their
administration.--Section 1905(b) of the Social Security Act (42
U.S.C. 1396d(b)) is amended--
(A) by striking ``and (5)'' and inserting ``(5)'';
(B) by striking ``services and vaccines described in
subparagraphs (A) and (B) of subsection (a)(13), and
prohibits cost-sharing for such services and vaccines''
and inserting ``services described in subsection
(a)(13)(A), and prohibits cost-sharing for such
services'';
(C) by striking ``medical assistance for such
services and vaccines'' and inserting ``medical
assistance for such services''; and
(D) <<NOTE: Time periods.>> by inserting ``, and
(6) during the first 8 fiscal quarters beginning on or
after the effective date of this clause, in the case of
a State which, as of the date of enactment of the Act
titled `An Act to provide for reconciliation pursuant to
title II of S. Con. Res. 14', provides medical
assistance for vaccines described in subsection
(a)(13)(B) and their administration and prohibits cost-
sharing for such vaccines, the Federal medical
assistance percentage, as determined under this
subsection and subsection (y), shall be increased by 1
percentage point with respect to medical assistance for
such vaccines and their administration'' before the
first period.
(b) CHIP.--
(1) Requiring coverage of adult vaccinations.--Section
2103(c) of the Social Security Act (42 U.S.C. 1397cc(c)) is
amended by adding at the end the following paragraph:
``(12) Required coverage of approved, recommended adult
vaccines and their administration.--Regardless of the type of
coverage elected by a State under subsection (a), if the State
child health plan or a waiver of such plan provides child health
assistance or pregnancy-related assistance (as defined in
section 2112) to an individual who is 19 years of age or older,
such assistance shall include coverage of vaccines described in
section 1905(a)(13)(B) and their administration.''.
(2) No cost-sharing for vaccinations.--Section 2103(e)(2) of
such Act (42 U.S.C. 1397cc(e)(2)) is amended by inserting
``vaccines described in subsection (c)(12) (and the
administration of such vaccines),'' after ``in vitro diagnostic
products described in subsection (c)(10) (and administration of
such products),''.
(c) <<NOTE: Applicability. 42 USC 1396a note.>> Effective Date.--
The amendments made by this section take effect on the 1st day of the
1st fiscal quarter that begins on or after the date that is 1 year after
the date of enactment of this Act and shall apply to expenditures made
under a State plan or waiver of such plan under title XIX of the Social
Security Act (42 U.S.C. 1396 through 1396w-6) or under a State child
health plan or waiver of such plan under title XXI of such Act (42
U.S.C. 1397aa through 1397mm) on or after such effective date.
[[Page 136 STAT. 1902]]
SEC. 11406. APPROPRIATE COST-SHARING FOR COVERED INSULIN PRODUCTS
UNDER MEDICARE PART D.
(a) In General.--Section 1860D-2 of the Social Security Act (42
U.S.C. 1395w-102), as amended by sections 11201, 11202, and 11401, is
amended--
(1) in subsection (b)--
(A) in paragraph (1)(A), by striking ``paragraph
(8)'' and inserting ``paragraphs (8) and (9)'';
(B) in paragraph (2)--
(i) in subparagraph (A), by striking
``paragraph (8)'' and inserting ``paragraphs (8)
and (9)'';
(ii) in subparagraph (C)(i), in the matter
preceding subclause (I), by striking ``and (8)''
and inserting ``, (8), and (9)''; and
(iii) in subparagraph (D)(i), in the matter
preceding subclause (I), by striking ``and (8)''
and inserting ``, (8), and (9)'';
(C) in paragraph (3)(A), in the matter preceding
clause (i), by striking ``and (8)'' and inserting ``(8),
and (9)'';
(D) in paragraph (4)(A)(i), by striking ``paragraph
(8)'' and inserting ``paragraphs (8) and (9)''; and
(E) by adding at the end the following new
paragraph:
``(9) Treatment of cost-sharing for covered insulin
products.--
``(A) <<NOTE: Time periods.>> No application of
deductible.--For plan year 2023 and subsequent plan
years, the deductible under paragraph (1) shall not
apply with respect to any covered insulin product.
``(B) Application of cost-sharing.--
``(i) Plan years 2023 and 2024.--For plan
years 2023 and 2024, the coverage provides
benefits for any covered insulin product,
regardless of whether an individual has reached
the initial coverage limit under paragraph (3) or
the out-of-pocket threshold under paragraph (4),
with cost-sharing for a month's supply that does
not exceed the applicable copayment amount.
``(ii) Plan year 2025 and subsequent plan
years.--For a plan year beginning on or after
January 1, 2025, the coverage provides benefits
for any covered insulin product, prior to an
individual reaching the out-of-pocket threshold
under paragraph (4), with cost-sharing for a
month's supply that does not exceed the applicable
copayment amount.
``(C) <<NOTE: Definition.>> Covered insulin
product.--In this paragraph, the term `covered insulin
product' means an insulin product that is a covered part
D drug covered under the prescription drug plan or MA-PD
plan that is approved under section 505 of the Federal
Food, Drug, and Cosmetic Act or licensed under section
351 of the Public Health Service Act and marketed
pursuant to such approval or licensure, including any
covered insulin product that has been deemed to be
licensed under section 351 of the Public Health Service
Act pursuant to section 7002(e)(4) of the Biologics
Price Competition and Innovation Act of 2009 and
marketed pursuant to such section.
``(D) <<NOTE: Definition.>> Applicable copayment
amount.--In this paragraph, the term `applicable
copayment amount' means, with
[[Page 136 STAT. 1903]]
respect to a covered insulin product under a
prescription drug plan or an MA-PD plan dispensed--
``(i) during plan years 2023, 2024, and 2025,
$35; and
``(ii) during plan year 2026 and each
subsequent plan year, the lesser of--
``(I) $35;
``(II) an amount equal to 25 percent
of the maximum fair price established
for the covered insulin product in
accordance with part E of title XI; or
``(III) an amount equal to 25
percent of the negotiated price of the
covered insulin product under the
prescription drug plan or MA-PD plan.
``(E) <<NOTE: Reimbursement. Deadline.>> Special
rule for first 3 months of 2023.--With respect to a
month's supply of a covered insulin product dispensed
during the period beginning on January 1, 2023, and
ending on March 31, 2023, a PDP sponsor offering a
prescription drug plan or an MA organization offering an
MA-PD plan shall reimburse an enrollee within 30 days
for any cost-sharing paid by such enrollee that exceeds
the cost-sharing applied by the prescription drug plan
or MA-PD plan under subparagraph (B)(i) at the point-of-
sale for such month's supply.''; and
(2) in subsection (c), by adding at the end the following
new paragraph:
``(6) Treatment of cost-sharing for covered insulin
products.--The coverage is provided in accordance with
subsection (b)(9).''.
(b) Conforming Amendments to Cost-sharing for Low-income
Individuals.--Section 1860D-14(a) of the Social Security Act (42 U.S.C.
1395w-114(a)), as amended by sections 11201, 11401, and 11404, is
amended--
(1) <<NOTE: Time periods.>> in paragraph (1)--
(A) in subparagraph (D)(iii), by adding at the end
the following new sentence: ``For plan year 2023 and
subsequent plan years, the copayment amount applicable
under the preceding sentence to a month's supply of a
covered insulin product (as defined in section 1860D-
2(b)(9)(C)) dispensed to the individual may not exceed
the applicable copayment amount for the product under
the prescription drug plan or MA-PD plan in which the
individual is enrolled.''; and
(B) in subparagraph (E), by inserting the following
before the period at the end: ``or under section 1860D-
2(b)(9) in the case of a covered insulin product (as
defined in subparagraph (C) of such section)''; and
(2) in paragraph (2)--
(A) in subparagraph (B), by striking ``section
1860D-2(b)(8)'' and inserting ``paragraphs (8) and (9)
of section 1860D-2(b)'';
(B) in subparagraph (D), by adding at the end the
following new sentence: ``For plan year 2023, the amount
of the coinsurance applicable under the preceding
sentence to a month's supply of a covered insulin
product (as defined in section 1860D-2(b)(9)(C))
dispensed to the individual may not exceed the
applicable copayment amount for the
[[Page 136 STAT. 1904]]
product under the prescription drug plan or MA-PD plan
in which the individual is enrolled.''; and
(C) in subparagraph (E), by adding at the end the
following new sentence: ``For plan year 2023, the amount
of the copayment or coinsurance applicable under the
preceding sentence to a month's supply of a covered
insulin product (as defined in section 1860D-2(b)(9)(C))
dispensed to the individual may not exceed the
applicable copayment amount for the product under the
prescription drug plan or MA-PD plan in which the
individual is enrolled.''.
(c) Temporary Retrospective Subsidy.--Section 1860D-15(h) of the
Social Security Act (42 U.S.C. 1395w-115(h)), as added by section
11401(c), is amended--
(1) in the subsection heading, by inserting ``and Insulin''
after ``Practices''; and
(2) in paragraph (1), by striking ``section 1860D-2(b)(8)''
and inserting ``paragraph (8) or (9) of section 1860D-2(b)''.
(d) <<NOTE: 42 USC 1395w-102 note.>> Implementation for 2023
Through 2025.--The Secretary shall implement this section for plan years
2023, 2024, and 2025 by program instruction or other forms of program
guidance.
(e) Funding.--In addition to amounts otherwise available, there is
appropriated to the Centers for Medicare & Medicaid Services, out of any
money in the Treasury not otherwise appropriated, $1,500,000 for fiscal
year 2022, to remain available until expended, to carry out the
provisions of, including the amendments made by, this section.
SEC. 11407. <<NOTE: Effective dates.>> LIMITATION ON MONTHLY
COINSURANCE AND ADJUSTMENTS TO
SUPPLIER PAYMENT UNDER MEDICARE PART B
FOR INSULIN FURNISHED THROUGH DURABLE
MEDICAL EQUIPMENT.
(a) Waiver of Deductible.--The first sentence of section 1833(b) of
the Social Security Act (42 U.S.C. 1395l(b)) is amended--
(1) by striking ``and (12)'' and inserting ``(12)''; and
(2) by inserting before the period the following: ``, and
(13) such deductible shall not apply with respect to insulin
furnished on or after July 1, 2023, through an item of durable
medical equipment covered under section 1861(n).''.
(b) Coinsurance.--
(1) In general.--Section 1833(a)(1)(S) of the Social
Security Act (42 U.S.C. 1395l(a)(1)(S)) is amended--
(A) by inserting ``(i) except as provided in clause
(ii),'' after ``(S)''; and
(B) by inserting after ``or 1847B),'' the following:
``and (ii) with respect to insulin furnished on or after
July 1, 2023, through an item of durable medical
equipment covered under section 1861(n), the amounts
paid shall be, subject to the fourth sentence of this
subsection, 80 percent of the payment amount established
under section 1847A (or section 1847B, if applicable)
for such insulin,''.
(2) Adjustment to supplier payments; limitation on monthly
coinsurance.--Section 1833(a) of the Social Security Act (42
U.S.C. 1395l(a)) is amended, in the flush matter at the end, by
adding at the end the following new sentence: ``The Secretary
shall make such adjustments as may be necessary to the amounts
paid as specified under paragraph (1)(S)(ii) for insulin
furnished on or after July 1, 2023, through
[[Page 136 STAT. 1905]]
an item of durable medical equipment covered under section
1861(n), such that the amount of coinsurance payable by an
individual enrolled under this part for a month's supply of such
insulin does not exceed $35.''.
(c) <<NOTE: 42 USC 1395l note.>> Implementation.--The Secretary of
Health and Human Services shall implement this section for 2023 by
program instruction or other forms of program guidance.
SEC. 11408. SAFE HARBOR FOR ABSENCE OF DEDUCTIBLE FOR INSULIN.
(a) In General.--Paragraph (2) of section 223(c) of the Internal
Revenue Code of 1986 <<NOTE: 26 USC 223.>> is amended by adding at the
end the following new subparagraph:
``(G) Safe harbor for absence of deductible for
certain insulin products.--
``(i) In general.--A plan shall not fail to be
treated as a high deductible health plan by reason
of failing to have a deductible for selected
insulin products.
``(ii) <<NOTE: Definitions.>> Selected
insulin products.--For purposes of this
subparagraph--
``(I) In general.--The term
`selected insulin products' means any
dosage form (such as vial, pump, or
inhaler dosage forms) of any different
type (such as rapid-acting, short-
acting, intermediate-acting, long-
acting, ultra long-acting, and premixed)
of insulin.
``(II) Insulin.--The term `insulin'
means insulin that is licensed under
subsection (a) or (k) of section 351 of
the Public Health Service Act (42 U.S.C.
262) and continues to be marketed under
such section, including any insulin
product that has been deemed to be
licensed under section 351(a) of such
Act pursuant to section 7002(e)(4) of
the Biologics Price Competition and
Innovation Act of 2009 (Public Law 111-
148) and continues to be marketed
pursuant to such licensure.''.
(b) <<NOTE: 26 USC 223 note.>> Effective Date.--The amendment made
by this section shall apply to plan years beginning after December 31,
2022.
Subtitle C--Affordable Care Act Subsidies
SEC. 12001. IMPROVE AFFORDABILITY AND REDUCE PREMIUM COSTS OF
HEALTH INSURANCE FOR CONSUMERS.
(a) In General.--Clause (iii) of section 36B(b)(3)(A) of the
Internal Revenue Code of 1986 is amended--
(1) by striking ``in 2021 or 2022'' and inserting ``after
December 31, 2020, and before January 1, 2026'', and
(2) by striking ``2021 and 2022'' in the heading and
inserting ``2021 through 2025''.
(b) Extension Through 2025 of Rule to Allow Credit to Taxpayers
Whose Household Income Exceeds 400 Percent of the Poverty Line.--Section
36B(c)(1)(E) of the Internal Revenue Code of 1986 is amended--
(1) by striking ``in 2021 or 2022'' and inserting ``after
December 31, 2020, and before January 1, 2026'', and
[[Page 136 STAT. 1906]]
(2) by striking ``2021 and 2022'' in the heading and
inserting ``2021 through 2025''.
(c) <<NOTE: 26 USC 36B note.>> Effective Date.--The amendments made
by this section shall apply to taxable years beginning after December
31, 2022.
Subtitle D--Energy Security
SEC. 13001. AMENDMENT OF 1986 CODE.
Except as otherwise expressly provided, whenever in this subtitle an
amendment or repeal is expressed in terms of an amendment to, or repeal
of, a section or other provision, the reference shall be considered to
be made to a section or other provision of the Internal Revenue Code of
1986.
PART 1--CLEAN ELECTRICITY AND REDUCING CARBON EMISSIONS
SEC. 13101. EXTENSION AND MODIFICATION OF CREDIT FOR ELECTRICITY
PRODUCED FROM CERTAIN RENEWABLE
RESOURCES.
(a) In General.--The following provisions of section
45(d) <<NOTE: 26 USC 45.>> are each amended by striking ``January 1,
2022'' each place it appears and inserting ``January 1, 2025'':
(1) Paragraph (2)(A).
(2) Paragraph (3)(A).
(3) Paragraph (6).
(4) Paragraph (7).
(5) Paragraph (9).
(6) Paragraph (11)(B).
(b) Base Credit Amount.--Section 45 is amended--
(1) in subsection (a)(1), by striking ``1.5 cents'' and
inserting ``0.3 cents'', and
(2) in subsection (b)(2), by striking ``1.5 cent'' and
inserting ``0.3 cent''.
(c) Application of Extension to Geothermal and Solar.--Section
45(d)(4) is amended by striking ``and which'' and all that follows
through ``January 1, 2022'' and inserting ``and the construction of
which begins before January 1, 2025''.
(d) Extension of Election to Treat Qualified Facilities as Energy
Property.--Section 48(a)(5)(C)(ii) is amended by striking ``January 1,
2022'' and inserting ``January 1, 2025''.
(e) Application of Extension to Wind Facilities.--
(1) In general.--Section 45(d)(1) is amended by striking
``January 1, 2022'' and inserting ``January 1, 2025''.
(2) Application of phaseout percentage.--
(A) Renewable electricity production credit.--
Section 45(b)(5) is amended by inserting ``which is
placed in service before January 1, 2022'' after ``using
wind to produce electricity''.
(B) Energy credit.--Section 48(a)(5)(E) is amended
by inserting ``placed in service before January 1, 2022,
and'' before ``treated as energy property''.
(3) Qualified offshore wind facilities under energy
credit.--Section 48(a)(5)(F)(i) is amended by striking
``offshore wind facility'' and all that follows and inserting
the following: ``offshore wind facility, subparagraph (E) shall
not apply.''.
[[Page 136 STAT. 1907]]
(f) Wage and Apprenticeship Requirements.--Section 45(b) <<NOTE: 26
USC 45.>> is amended by adding at the end the following new paragraphs:
``(6) Increased credit amount for qualified facilities.--
``(A) In general.--In the case of any qualified
facility which satisfies the requirements of
subparagraph (B), the amount of the credit determined
under subsection (a) (determined after the application
of paragraphs (1) through (5) and without regard to this
paragraph) shall be equal to such amount multiplied by
5.
``(B) Qualified facility requirements.--A qualified
facility meets the requirements of this subparagraph if
it is one of the following:
``(i) A facility with a maximum net output of
less than 1 megawatt (as measured in alternating
current).
``(ii) <<NOTE: Time
period. Publication. Guidelines.>> A facility the
construction of which begins prior to the date
that is 60 days after the Secretary publishes
guidance with respect to the requirements of
paragraphs (7)(A) and (8).
``(iii) A facility which satisfies the
requirements of paragraphs (7)(A) and (8).
``(7) Prevailing wage requirements.--
``(A) In general.--The requirements described in
this subparagraph with respect to any qualified facility
are that the taxpayer shall ensure that any laborers and
mechanics employed by the taxpayer or any contractor or
subcontractor in--
``(i) the construction of such facility, and
``(ii) <<NOTE: Determination.>> with respect
to any taxable year, for any portion of such
taxable year which is within the period described
in subsection (a)(2)(A)(ii), the alteration or
repair of such facility,
shall be paid wages at rates not less than the
prevailing rates for construction, alteration, or repair
of a similar character in the locality in which such
facility is located as most recently determined by the
Secretary of Labor, in accordance with subchapter IV of
chapter 31 of title 40, United States
Code. <<NOTE: Applicability.>> For purposes of
determining an increased credit amount under paragraph
(6)(A) for a taxable year, the requirement under clause
(ii) is applied to such taxable year in which the
alteration or repair of the qualified facility occurs.''
``(B) Correction and penalty related to failure to
satisfy wage requirements.--
``(i) In general.--In the case of any taxpayer
which fails to satisfy the requirement under
subparagraph (A) with respect to the construction
of any qualified facility or with respect to the
alteration or repair of a facility in any year
during the period described in subparagraph
(A)(ii), such taxpayer shall be deemed to have
satisfied such requirement under such subparagraph
with respect to such facility for any year if,
with respect to any laborer or mechanic who was
paid wages at a rate below the rate described in
such subparagraph for any period during such year,
such taxpayer--
[[Page 136 STAT. 1908]]
``(I) makes payment to such laborer
or mechanic in an amount equal to the
sum of--
``(aa) an amount equal to
the difference between--
``(AA) the amount of
wages paid to such laborer
or mechanic during such
period, and
``(BB) the amount of
wages required to be paid to
such laborer or mechanic
pursuant to such
subparagraph during such
period, plus
``(bb) interest on the
amount determined under item
(aa) at the underpayment rate
established under section 6621
(determined by substituting `6
percentage points' for `3
percentage points' in subsection
(a)(2) of such section) for the
period described in such item,
and
``(II) makes payment to the
Secretary of a penalty in an amount
equal to the product of--
``(aa) $5,000, multiplied by
``(bb) the total number of
laborers and mechanics who were
paid wages at a rate below the
rate described in subparagraph
(A) for any period during such
year.
``(ii) Deficiency procedures not to apply.--
Subchapter B of chapter 63 (relating to deficiency
procedures for income, estate, gift, and certain
excise taxes) shall not apply with respect to the
assessment or collection of any penalty imposed by
this paragraph.
``(iii) <<NOTE: Determination. Applicability.>>
Intentional disregard.--If the Secretary
determines that any failure described in clause
(i) is due to intentional disregard of the
requirements under subparagraph (A), such clause
shall be applied--
``(I) in subclause (I), by
substituting `three times the sum' for
`the sum', and
``(II) in subclause (II), by
substituting `$10,000' for `5,000' in
item (aa) thereof.
``(iv) <<NOTE: Regulations. Deadline.>>
Limitation on period for payment.--Pursuant to
rules issued by the Secretary, in the case of a
final determination by the Secretary with respect
to any failure by the taxpayer to satisfy the
requirement under subparagraph (A), subparagraph
(B)(i) shall not apply unless the payments
described in subclauses (I) and (II) of such
subparagraph are made by the taxpayer on or before
the date which is 180 days after the date of such
determination.
``(8) Apprenticeship requirements.--The requirements
described in this paragraph with respect to the construction of
any qualified facility are as follows:
``(A) Labor hours.--
``(i) Percentage of total labor hours.--
Taxpayers shall ensure that, with respect to the
construction of any qualified facility, not less
than the applicable percentage of the total labor
hours of the construction, alteration, or repair
work (including such work performed by any
contractor or subcontractor)
[[Page 136 STAT. 1909]]
with respect to such facility shall, subject to
subparagraph (B), be performed by qualified
apprentices.
``(ii) <<NOTE: Effective dates.>> Applicable
percentage.--For purposes of clause (i), the
applicable percentage shall be--
``(I) in the case of a qualified
facility the construction of which
begins before January 1, 2023, 10
percent,
``(II) in the case of a qualified
facility the construction of which
begins after December 31, 2022, and
before January 1, 2024, 12.5 percent,
and
``(III) in the case of a qualified
facility the construction of which
begins after December 31, 2023, 15
percent.
``(B) Apprentice to journeyworker ratio.--The
requirement under subparagraph (A)(i) shall be subject
to any applicable requirements for apprentice-to-
journeyworker ratios of the Department of Labor or the
applicable State apprenticeship agency.
``(C) Participation.--Each taxpayer, contractor, or
subcontractor who employs 4 or more individuals to
perform construction, alteration, or repair work with
respect to the construction of a qualified facility
shall employ 1 or more qualified apprentices to perform
such work.
``(D) Exception.--
``(i) In general.--A taxpayer shall not be
treated as failing to satisfy the requirements of
this paragraph if such taxpayer--
``(I) satisfies the requirements
described in clause (ii), or
``(II) subject to clause (iii), in
the case of any failure by the taxpayer
to satisfy the requirement under
subparagraphs (A) and (C) with respect
to the construction, alteration, or
repair work on any qualified facility to
which subclause (I) does not apply,
makes payment to the Secretary of a
penalty in an amount equal to the
product of--
``(aa) $50, multiplied by
``(bb) the total labor hours
for which the requirement
described in such subparagraph
was not satisfied with respect
to the construction, alteration,
or repair work on such qualified
facility.
``(ii) Good faith effort.--For purposes of
clause (i), a taxpayer shall be deemed to have
satisfied the requirements under this paragraph
with respect to a qualified facility if such
taxpayer has requested qualified apprentices from
a registered apprenticeship program, as defined in
section 3131(e)(3)(B), and--
``(I) such request has been denied,
provided that such denial is not the
result of a refusal by the taxpayer or
any contractors or subcontractors
engaged in the performance of
construction, alteration, or repair work
with respect to such qualified facility
to comply with the established standards
and requirements of the registered
apprenticeship program, or
[[Page 136 STAT. 1910]]
``(II) <<NOTE: Deadline.>> the
registered apprenticeship program fails
to respond to such request within 5
business days after the date on which
such registered apprenticeship program
received such request.
``(iii) <<NOTE: Determination.>> Intentional
disregard.--If the Secretary determines that any
failure described in subclause (i)(II) is due to
intentional disregard of the requirements under
subparagraphs (A) and (C), subclause (i)(II) shall
be applied by substituting `$500' for `$50' in
item (aa) thereof.
``(E) Definitions.--For purposes of this paragraph--
``(i) Labor hours.--The term `labor hours'--
``(I) means the total number of
hours devoted to the performance of
construction, alteration, or repair work
by any individual employed by the
taxpayer or by any contractor or
subcontractor, and
``(II) excludes any hours worked
by--
``(aa) foremen,
``(bb) superintendents,
``(cc) owners, or
``(dd) persons employed in a
bona fide executive,
administrative, or professional
capacity (within the meaning of
those terms in part 541 of title
29, Code of Federal
Regulations).
``(ii) Qualified apprentice.--The term
`qualified apprentice' means an individual who is
employed by the taxpayer or by any contractor or
subcontractor and who is participating in a
registered apprenticeship program, as defined in
section 3131(e)(3)(B).
``(9) <<NOTE: Determination.>> Regulations and guidance.--
The Secretary shall issue such regulations or other guidance as
the Secretary determines necessary to carry out the purposes of
this subsection, including regulations or other guidance which
provides for requirements for recordkeeping or information
reporting for purposes of administering the requirements of this
subsection.''.
(g) Domestic Content, Phaseout, and Energy Communities.--Section
45(b), as amended by subsection (f), <<NOTE: 26 USC 45.>> is amended--
(1) by redesignating paragraph (9) as paragraph (12), and
(2) by inserting after paragraph (8) the following:
``(9) Domestic content bonus credit amount.--
``(A) In general.--In the case of any qualified
facility which satisfies the requirement under
subparagraph (B)(i), the amount of the credit determined
under subsection (a) (determined after the application
of paragraphs (1) through (8)) shall be increased by an
amount equal to 10 percent of the amount so determined.
``(B) Requirement.--
``(i) <<NOTE: Certification.>> In general.--
The requirement described in this clause is
satisfied with respect to any qualified facility
if the taxpayer certifies to the Secretary (at
such time, and in such form and manner, as the
Secretary may prescribe) that any steel, iron, or
manufactured product which is a component of such
facility (upon completion of construction) was
produced in the
[[Page 136 STAT. 1911]]
United States (as determined under section 661 of
title 49, Code of Federal Regulations).
``(ii) <<NOTE: Applicability.>> Steel and
iron.--In the case of steel or iron, clause (i)
shall be applied in a manner consistent with
section 661.5 of title 49, Code of Federal
Regulations.
``(iii) Manufactured product.--For purposes of
clause (i), the manufactured products which are
components of a qualified facility upon completion
of construction shall be deemed to have been
produced in the United States if not less than the
adjusted percentage (as determined under
subparagraph (C)) of the total costs of all such
manufactured products of such facility are
attributable to manufactured products (including
components) which are mined, produced, or
manufactured in the United States.
``(C) Adjusted percentage.--
``(i) In general.--Subject to subclause (ii),
for purposes of subparagraph (B)(iii), the
adjusted percentage shall be 40 percent.
``(ii) Offshore wind facility.--For purposes
of subparagraph (B)(iii), in the case of a
qualified facility which is an offshore wind
facility, the adjusted percentage shall be 20
percent.
``(10) Phaseout for elective payment.--
``(A) In general.--In the case of a taxpayer making
an election under section 6417 with respect to a credit
under this section, the amount of such credit shall be
replaced with--
``(i) the value of such credit (determined
without regard to this paragraph), multiplied by
``(ii) the applicable percentage.
``(B) 100 percent applicable percentage for certain
qualified facilities.--In the case of any qualified
facility--
``(i) which satisfies the requirements under
paragraph (9)(B), or
``(ii) with a maximum net output of less than
1 megawatt (as measured in alternating current),
the applicable percentage shall be 100 percent.
``(C) <<NOTE: Effective dates.>> Phased domestic
content requirement.--Subject to subparagraph (D), in
the case of any qualified facility which is not
described in subparagraph (B), the applicable percentage
shall be--
``(i) if construction of such facility began
before January 1, 2024, 100 percent, and
``(ii) if construction of such facility began
in calendar year 2024, 90 percent.
``(D) Exception.--
``(i) In general.--For purposes of this
paragraph, the Secretary shall provide exceptions
to the requirements under this paragraph if--
``(I) the inclusion of steel, iron,
or manufactured products which are
produced in the United States increases
the overall costs of construction of
qualified facilities by more than 25
percent, or
[[Page 136 STAT. 1912]]
``(II) relevant steel, iron, or
manufactured products are not produced
in the United States in sufficient and
reasonably available quantities or of a
satisfactory quality.
``(ii) Applicable percentage.--In any case in
which the Secretary provides an exception pursuant
to clause (i), the applicable percentage shall be
100 percent.
``(11) Special rule for qualified facility located in energy
community.--
``(A) In general.--In the case of a qualified
facility which is located in an energy community, the
credit determined under subsection (a) (determined after
the application of paragraphs (1) through (10), without
the application of paragraph (9)) shall be increased by
an amount equal to 10 percent of the amount so
determined.
``(B) <<NOTE: Definition.>> Energy community.--For
purposes of this paragraph, the term `energy community'
means--
``(i) a brownfield site (as defined in
subparagraphs (A), (B), and (D)(ii)(III) of
section 101(39) of the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980
(42 U.S.C. 9601(39))),
``(ii) <<NOTE: Determinations.>> a
metropolitan statistical area or non-metropolitan
statistical area which--
``(I) has (or, at any time during
the period beginning after December 31,
2009, had) 0.17 percent or greater
direct employment or 25 percent or
greater local tax revenues related to
the extraction, processing, transport,
or storage of coal, oil, or natural gas
(as determined by the Secretary), and
``(II) has an unemployment rate at
or above the national average
unemployment rate for the previous year
(as determined by the Secretary), or
``(iii) a census tract--
``(I) <<NOTE: Effective dates.>> in
which--
``(aa) after December 31,
1999, a coal mine has closed, or
``(bb) after December 31,
2009, a coal-fired electric
generating unit has been
retired, or
``(II) which is directly adjoining
to any census tract described in
subclause (I).''.
(h) Credit Reduced for Tax-exempt Bonds.--Section <<NOTE: 26 USC
45.>> 45(b)(3) is amended to read as follows:
``(3) Credit reduced for tax-exempt bonds.--The amount of
the credit determined under subsection (a) with respect to any
facility for any taxable year (determined after the application
of paragraphs (1) and (2)) shall be reduced by the amount which
is the product of the amount so determined for such year and the
lesser of 15 percent or a fraction--
``(A) the numerator of which is the sum, for the
taxable year and all prior taxable years, of proceeds of
an issue of any obligations the interest on which is
exempt from tax under section 103 and which is used to
provide financing for the qualified facility, and
[[Page 136 STAT. 1913]]
``(B) the denominator of which is the aggregate
amount of additions to the capital account for the
qualified facility for the taxable year and all prior
taxable years.
The <<NOTE: Determination.>> amounts under the preceding
sentence for any taxable year shall be determined as of the
close of the taxable year.''.
(i) Rounding Adjustment.--
(1) In general.--Section 45(b)(2) <<NOTE: 26 USC 45.>> is
amended by striking the second sentence and inserting the
following: ``If the 0.3 cent amount as increased under the
preceding sentence is not a multiple of 0.05 cent, such amount
shall be rounded to the nearest multiple of 0.05 cent. In any
other case, if an amount as increased under this paragraph is
not a multiple of 0.1 cent, such amount shall be rounded to the
nearest multiple of 0.1 cent.''.
(2) Conforming amendment.--Section 45(b)(4)(A) is amended by
striking ``last sentence'' and inserting ``last two sentences''.
(j) Hydropower.--
(1) Elimination of credit rate reduction for qualified
hydroelectric production and marine and hydrokinetic renewable
energy.--Section 45(b)(4)(A), as amended by the preceding
provisions of this section, is amended by striking ``(7), (9),
or (11)'' and inserting ``or (7)''.
(2) Marine and hydrokinetic renewable energy.--Section 45 is
amended--
(A) in subsection (c)(10)(A)--
(i) in clause (iii), by striking ``or'',
(ii) in clause (iv), by striking the period at
the end and inserting ``, or'' and
(iii) by adding at the end the following:
``(v) pressurized water used in a pipeline (or
similar man-made water conveyance) which is
operated--
``(I) for the distribution of water
for agricultural, municipal, or
industrial consumption, and
``(II) not primarily for the
generation of electricity.'', and
(B) in subsection (d)(11)(A), by striking ``150''
and inserting ``25''.
(k) <<NOTE: Applicability. 26 USC 45 note.>> Effective Dates.--
(1) In general.--Except as provided in paragraphs (2) and
(3), the amendments made by this section shall apply to
facilities placed in service after December 31, 2021.
(2) Credit reduced for tax-exempt bonds.--The amendment made
by subsection (h) shall apply to facilities the construction of
which begins after the date of enactment of this Act.
(3) Domestic content, phaseout, energy communities, and
hydropower.--The amendments made by subsections (g) and (j)
shall apply to facilities placed in service after December 31,
2022.
SEC. 13102. EXTENSION AND MODIFICATION OF ENERGY CREDIT.
(a) Extension of Credit.--The following provisions of section 48 are
each amended by striking ``January 1, 2024'' each place it appears and
inserting ``January 1, 2025'':
(1) Subsection (a)(2)(A)(i)(II).
(2) Subsection (a)(3)(A)(ii).
[[Page 136 STAT. 1914]]
(3) Subsection (c)(1)(D).
(4) Subsection (c)(2)(D).
(5) Subsection (c)(3)(A)(iv).
(6) Subsection (c)(4)(C).
(7) Subsection (c)(5)(D).
(b) Further Extension for Certain Energy Property.--Section
48(a)(3)(A)(vii) <<NOTE: 26 USC 48.>> is amended by striking ``January
1, 2024'' and inserting ``January 1, 2035''.
(c) Phaseout of Credit.--Section 48(a) is amended by striking
paragraphs (6) and (7) and inserting the following new paragraph:
``(6) <<NOTE: Effective dates.>> Phaseout for certain
energy property.--In the case of any qualified fuel cell
property, qualified small wind property, or energy property
described in clause (i) or clause (ii) of paragraph (3)(A) the
construction of which begins after December 31, 2019, and which
is placed in service before January 1, 2022, the energy
percentage determined under paragraph (2) shall be equal to 26
percent.''.
(d) Base Energy Percentage Amount; Phaseout of Certain Energy
Property.--
(1) Base energy percentage amount.--Section 48(a) is
amended--
(A) in paragraph (2)(A)--
(i) in clause (i), by striking ``30 percent''
and inserting ``6 percent'', and
(ii) in clause (ii), by striking ``10
percent'' and inserting ``2 percent'', and
(B) in paragraph (5)(A)(ii), by striking ``30
percent'' and inserting ``6 percent''.
(2) Phaseout of certain energy property.--Section 48(a), as
amended by the preceding provisions of this Act, is amended by
adding at the end the following new paragraph:
``(7) <<NOTE: Effective dates. Time periods.>> Phaseout for
certain energy property.--In the case of any energy property
described in clause (vii) of paragraph (3)(A), the energy
percentage determined under paragraph (2) shall be equal to--
``(A) in the case of any property the construction
of which begins before January 1, 2033, and which is
placed in service after December 31, 2021, 6 percent,
``(B) in the case of any property the construction
of which begins after December 31, 2032, and before
January 1, 2034, 5.2 percent, and
``(C) in the case of any property the construction
of which begins after December 31, 2033, and before
January 1, 2035, 4.4 percent.''.
(e) 6 Percent Credit for Geothermal.--Section 48(a)(2)(A)(i)(II) is
amended by striking ``paragraph (3)(A)(i)'' and inserting ``clause (i)
or (iii) of paragraph (3)(A)''.
(f) Energy Storage Technologies; Qualified Biogas Property;
Microgrid Controllers; Extension of Other Property.--
(1) In general.--Section 48(a)(3)(A) is amended by striking
``or'' at the end of clause (vii), and by adding at the end the
following new clauses:
``(ix) energy storage technology,
``(x) qualified biogas property, or
``(xi) microgrid controllers,''.
[[Page 136 STAT. 1915]]
(2) Application of 6 percent credit.--Section
48(a)(2)(A)(i) <<NOTE: 26 USC 48.>> is amended by striking
``and'' at the end of subclauses (IV) and (V) and adding at the
end the following new subclauses:
``(VI) energy storage technology,
``(VII) qualified biogas property,
``(VIII) microgrid controllers, and
``(IX) energy property described in
clauses (v) and (vii) of paragraph
(3)(A), and''.
(3) Definitions.--Section 48(c) is amended by adding at the
end the following new paragraphs:
``(6) Energy storage technology.--
``(A) In general.--The term `energy storage
technology' means--
``(i) property (other than property primarily
used in the transportation of goods or individuals
and not for the production of electricity) which
receives, stores, and delivers energy for
conversion to electricity (or, in the case of
hydrogen, which stores energy), and has a
nameplate capacity of not less than 5 kilowatt
hours, and
``(ii) thermal energy storage property.
``(B) Modifications of certain property.--In the
case of any property which either--
``(i) was placed in service before the date of
enactment of this section and would be described
in subparagraph (A)(i), except that such property
has a capacity of less than 5 kilowatt hours and
is modified in a manner that such property (after
such modification) has a nameplate capacity of not
less than 5 kilowatt hours, or
``(ii) is described in subparagraph (A)(i) and
is modified in a manner that such property (after
such modification) has an increase in nameplate
capacity of not less than 5 kilowatt hours,
such property shall be treated as described in
subparagraph (A)(i) except that the basis of any
existing property prior to such modification shall not
be taken into account for purposes of this
section. <<NOTE: Applicability.>> In the case of any
property to which this subparagraph applies,
subparagraph (D) shall be applied by substituting
`modification' for `construction'.
``(C) Thermal energy storage property.--
``(i) In general.--Subject to clause (ii), for
purposes of this paragraph, the term `thermal
energy storage property' means property comprising
a system which--
``(I) is directly connected to a
heating, ventilation, or air
conditioning system,
``(II) removes heat from, or adds
heat to, a storage medium for subsequent
use, and
``(III) provides energy for the
heating or cooling of the interior of a
residential or commercial building.
``(ii) Exclusion.--The term `thermal energy
storage property' shall not include--
``(I) a swimming pool,
[[Page 136 STAT. 1916]]
``(II) combined heat and power
system property, or
``(III) a building or its structural
components.
``(D) Termination.--The term `energy storage
technology' shall not include any property the
construction of which begins after December 31, 2024.
``(7) Qualified biogas property.--
``(A) In general.--The term `qualified biogas
property' means property comprising a system which--
``(i) converts biomass (as defined in section
45K(c)(3), as in effect on the date of enactment
of this paragraph) into a gas which--
``(I) consists of not less than 52
percent methane by volume, or
``(II) is concentrated by such
system into a gas which consists of not
less than 52 percent methane, and
``(ii) captures such gas for sale or
productive use, and not for disposal via
combustion.
``(B) Inclusion of cleaning and conditioning
property.--The term `qualified biogas property' includes
any property which is part of such system which cleans
or conditions such gas.
``(C) Termination.--The term `qualified biogas
property' shall not include any property the
construction of which begins after December 31, 2024.
``(8) Microgrid controller.--
``(A) In general.--The term `microgrid controller'
means equipment which is--
``(i) part of a qualified microgrid, and
``(ii) designed and used to monitor and
control the energy resources and loads on such
microgrid.
``(B) Qualified microgrid.--The term `qualified
microgrid' means an electrical system which--
``(i) includes equipment which is capable of
generating not less than 4 kilowatts and not
greater than 20 megawatts of electricity,
``(ii) is capable of operating--
``(I) in connection with the
electrical grid and as a single
controllable entity with respect to such
grid, and
``(II) independently (and
disconnected) from such grid, and
``(iii) is not part of a bulk-power system (as
defined in section 215 of the Federal Power Act
(16 U.S.C. 824o)).
``(C) Termination.--The term `microgrid controller'
shall not include any property the construction of which
begins after December 31, 2024.''.
(4) Denial of double benefit for qualified biogas
property.--Section 45(e) is <<NOTE: 26 USC 45.>> amended by
adding at the end the following new paragraph:
``(12) Coordination with energy credit for qualified biogas
property.--The term `qualified facility' shall not include any
facility which produces electricity from gas produced by
qualified biogas property (as defined in section 48(c)(7)) if a
[[Page 136 STAT. 1917]]
credit is allowed under section 48 with respect to such property
for the taxable year or any prior taxable year.''.
(5) Public utility property.--Paragraph (2) of section
50(d) <<NOTE: 26 USC 50.>> is amended--
(A) by adding after the first sentence the following
new sentence: ``At the election of a taxpayer, this
paragraph shall not apply to any energy storage
technology (as defined in section 48(c)(6)), provided--
'', and
(B) by adding the following new subparagraphs:
``(A) no election under this paragraph shall be
permitted if the making of such election is prohibited
by a State or political subdivision thereof, by any
agency or instrumentality of the United States, or by a
public service or public utility commission or other
similar body of any State or political subdivision that
regulates public utilities as described in section
7701(a)(33)(A),
``(B) an election under this paragraph shall be made
separately with respect to each energy storage
technology by the due date (including extensions) of the
Federal tax return for the taxable year in which the
energy storage technology is placed in service by the
taxpayer, and once made, may be revoked only with the
consent of the Secretary, and
``(C) an election shall not apply with respect to
any energy storage technology if such energy storage
technology has a maximum capacity equal to or less than
500 kilowatt hours.''.
(g) Fuel Cells Using Electromechanical Processes.--
(1) In general.--Section 48(c)(1) is amended--
(A) in subparagraph (A)(i)--
(i) by inserting ``or electromechanical''
after ``electrochemical'', and
(ii) by inserting ``(1 kilowatt in the case of
a fuel cell power plant with a linear generator
assembly)'' after ``0.5 kilowatt'', and
(B) in subparagraph (C)--
(i) by inserting ``, or linear generator
assembly,'' after ``a fuel cell stack assembly'',
and
(ii) by inserting ``or electromechanical''
after ``electrochemical''.
(2) Linear generator assembly limitation.--Section 48(c)(1)
is amended by redesignating subparagraph (D) as subparagraph (E)
and by inserting after subparagraph (C) the following new
subparagraph:
``(D) Linear generator assembly.--The term `linear
generator assembly' does not include any assembly which
contains rotating parts.''.
(h) Dynamic Glass.--Section 48(a)(3)(A)(ii) is amended by inserting
``, or electrochromic glass which uses electricity to change its light
transmittance properties in order to heat or cool a structure,'' after
``sunlight''.
(i) Coordination With Low Income Housing Tax Credit.--Paragraph (3)
of section 50(c) is amended--
(1) by striking ``and'' at the end of subparagraph (A),
(2) by striking the period at the end of subparagraph (B)
and inserting ``, and'', and
(3) by adding at the end the following new subparagraph:
[[Page 136 STAT. 1918]]
``(C) paragraph (1) shall not apply for purposes of
determining eligible basis under section 42.''.
(j) Interconnection Property.--Section 48(a), as amended by the
preceding provisions of this Act, <<NOTE: 26 USC 48.>> is amended by
adding at the end the following new paragraph:
``(8) <<NOTE: Definitions.>> Interconnection property.--
``(A) <<NOTE: Determination.>> In general.--For
purposes of determining the credit under subsection (a),
energy property shall include amounts paid or incurred
by the taxpayer for qualified interconnection property
in connection with the installation of energy property
(as defined in paragraph (3)) which has a maximum net
output of not greater than 5 megawatts (as measured in
alternating current), to provide for the transmission or
distribution of the electricity produced or stored by
such property, and which are properly chargeable to the
capital account of the taxpayer.
``(B) Qualified interconnection property.--The term
`qualified interconnection property' means, with respect
to an energy project which is not a microgrid
controller, any tangible property--
``(i) which is part of an addition,
modification, or upgrade to a transmission or
distribution system which is required at or beyond
the point at which the energy project
interconnects to such transmission or distribution
system in order to accommodate such
interconnection,
``(ii) either--
``(I) which is constructed,
reconstructed, or erected by the
taxpayer, or
``(II) for which the cost with
respect to the construction,
reconstruction, or erection of such
property is paid or incurred by such
taxpayer, and
``(iii) the original use of which, pursuant to
an interconnection agreement, commences with a
utility.
``(C) Interconnection agreement.--The term
`interconnection agreement' means an agreement with a
utility for the purposes of interconnecting the energy
property owned by such taxpayer to the transmission or
distribution system of such utility.
``(D) Utility.--For purposes of this paragraph, the
term `utility' means the owner or operator of an
electrical transmission or distribution system which is
subject to the regulatory authority of a State or
political subdivision thereof, any agency or
instrumentality of the United States, a public service
or public utility commission or other similar body of
any State or political subdivision thereof, or the
governing or ratemaking body of an electric cooperative.
``(E) Special rule for interconnection property.--In
the case of expenses paid or incurred for
interconnection property, amounts otherwise chargeable
to capital account with respect to such expenses shall
be reduced under rules similar to the rules of section
50(c).''.
(k) Energy Projects, Wage Requirements, and Apprenticeship
Requirements.--Section 48(a), as amended by the preceding provisions of
this Act, is amended by adding at the end the following new paragraphs:
[[Page 136 STAT. 1919]]
``(9) Increased credit amount for energy projects.--
``(A) In general.--
``(i) Rule.--In the case of any energy project
which satisfies the requirements of subparagraph
(B), the amount of the credit determined under
this subsection (determined after the application
of paragraphs (1) through (8) and without regard
to this clause) shall be equal to such amount
multiplied by 5.
``(ii) Energy project defined.--For purposes
of this subsection, the term `energy project'
means a project consisting of one or more energy
properties that are part of a single project.
``(B) Project requirements.--A project meets the
requirements of this subparagraph if it is one of the
following:
``(i) A project with a maximum net output of
less than 1 megawatt of electrical (as measured in
alternating current) or thermal energy.
``(ii) <<NOTE: Time
period. Publication. Guidelines.>> A project the
construction of which begins before the date that
is 60 days after the Secretary publishes guidance
with respect to the requirements of paragraphs
(10)(A) and (11).
``(iii) A project which satisfies the
requirements of paragraphs (10)(A) and (11).
``(10) Prevailing wage requirements.--
``(A) In general.--The requirements described in
this subparagraph with respect to any energy project are
that the taxpayer shall ensure that any laborers and
mechanics employed by the taxpayer or any contractor or
subcontractor in--
``(i) the construction of such energy project,
and
``(ii) <<NOTE: Time period.>> for the 5-year
period beginning on the date such project is
originally placed in service, the alteration or
repair of such project,
shall be paid wages at rates not less than the
prevailing rates for construction, alteration, or repair
of a similar character in the locality in which such
project is located as most recently determined by the
Secretary of Labor, in accordance with subchapter IV of
chapter 31 of title 40, United States Code. Subject to
subparagraph (C), for purposes of any determination
under paragraph (9)(A)(i) for the taxable year in which
the energy project is placed in service, the taxpayer
shall be deemed to satisfy the requirement under clause
(ii) at the time such project is placed in service.
``(B) <<NOTE: Applicability.>> Correction and
penalty related to failure to satisfy wage
requirements.--Rules similar to the rules of section
45(b)(7)(B) shall apply.
``(C) <<NOTE: Regulations. Guidelines.>>
Recapture.--The Secretary shall, by regulations or other
guidance, provide for recapturing the benefit of any
increase in the credit allowed under this subsection by
reason of this paragraph with respect to any project
which does not satisfy the requirements under
subparagraph (A) (after application of subparagraph (B))
for the period described in clause (ii) of subparagraph
(A) (but which does not cease to be investment credit
property within the meaning of section
50(a)). <<NOTE: Determination.>> The period and
[[Page 136 STAT. 1920]]
percentage of such recapture shall be determined under
rules similar to the rules of section 50(a).
``(11) Apprenticeship requirements.--Rules similar to the
rules of section 45(b)(8) shall apply.''.
(l) Domestic Content; Phaseout for Elective Payment.--Section 48(a),
as amended by the preceding provisions of this Act, <<NOTE: 26 USC
48.>> is amended by adding at the end the following new paragraphs:
``(12) Domestic content bonus credit amount.--
``(A) In general.--In the case of any energy project
which satisfies the requirement under subparagraph (B),
for purposes of applying paragraph (2) with respect to
such property, the energy percentage shall be increased
by the applicable credit rate increase.
``(B) <<NOTE: Applicability.>> Requirement.--Rules
similar to the rules of section 45(b)(9)(B) shall apply.
``(C) Applicable credit rate increase.--For purposes
of subparagraph (A), the applicable credit rate increase
shall be--
``(i) in the case of an energy project which
does not satisfy the requirements of paragraph
(9)(B), 2 percentage points, and
``(ii) in the case of an energy project which
satisfies the requirements of paragraph (9)(B), 10
percentage points.
``(13) <<NOTE: Applicability.>> Phaseout for elective
payment.--In the case of a taxpayer making an election under
section 6417 with respect to a credit under this section, rules
similar to the rules of section 45(b)(10) shall apply.''.
(m) Special Rule for Property Financed by Tax-exempt Bonds.--Section
48(a)(4) is amended to read as follows:
``(4) Special rule for property financed by tax-exempt
bonds. <<NOTE: Applicability.>> --Rules similar to the rule
under section 45(b)(3) shall apply for purposes of this
section.''.
(n) Treatment of Certain Contracts Involving Energy Storage.--
Section 7701(e) is amended--
(1) in paragraph (3)--
(A) in subparagraph (A)(i), by striking ``or'' at
the end of subclause (II), by striking ``and'' at the
end of subclause (III) and inserting ``or'', and by
adding at the end the following new subclause:
``(IV) the operation of a storage
facility, and'', and
(B) by adding at the end the following new
subparagraph:
``(F) <<NOTE: Definition.>> Storage facility.--For
purposes of subparagraph (A), the term `storage
facility' means a facility which uses energy storage
technology within the meaning of section 48(c)(6).'',
and
(2) in paragraph (4), by striking ``or water treatment works
facility'' and inserting ``water treatment works facility, or
storage facility''.
(o) Increase in Credit Rate for Energy Communities.--Section 48(a),
as amended by the preceding provisions of this Act, is amended by adding
at the end the following new paragraph:
``(14) Increase in credit rate for energy communities.--
[[Page 136 STAT. 1921]]
``(A) In general.--In the case of any energy project
that is placed in service within an energy community (as
defined in section 45(b)(11)(B), as applied by
substituting `energy project' for `qualified facility'
each place it appears), for purposes of applying
paragraph (2) with respect to energy property which is
part of such project, the energy percentage shall be
increased by the applicable credit rate increase.
``(B) Applicable credit rate increase.--For purposes
of subparagraph (A), the applicable credit rate increase
shall be equal to--
``(i) in the case of any energy project which
does not satisfy the requirements of paragraph
(9)(B), 2 percentage points, and
``(ii) in the case of any energy project which
satisfies the requirements of paragraph (9)(B), 10
percentage points.''.
(p) Regulations.--Section 48(a), as amended by the preceding
provisions of this Act, <<NOTE: 26 USC 48.>> is amended by adding at
the end the following new paragraph:
``(15) <<NOTE: Determination. Requirements. Records.>>
Regulations and guidance.--The Secretary shall issue such
regulations or other guidance as the Secretary determines
necessary to carry out the purposes of this subsection,
including regulations or other guidance which provides for
requirements for recordkeeping or information reporting for
purposes of administering the requirements of this
subsection.''.
(q) <<NOTE: Applicability. 26 USC 45 note.>> Effective Dates.--
(1) In general.--Except as provided in paragraphs (2) and
(3), the amendments made by this section shall apply to property
placed in service after December 31, 2021.
(2) Other property.--The amendments made by subsections (f),
(g), (h), (i), (j), (l), (n), and (o) shall apply to property
placed in service after December 31, 2022.
(3) Special rule for property financed by tax-exempt
bonds.--The amendments made by subsection (m) shall apply to
property the construction of which begins after the date of
enactment of this Act.
SEC. 13103. INCREASE IN ENERGY CREDIT FOR SOLAR AND WIND
FACILITIES PLACED IN SERVICE IN
CONNECTION WITH LOW-INCOME
COMMUNITIES.
(a) In General.--Section 48 is amended by adding at the end the
following new subsection:
``(e) Special Rules for Certain Solar and Wind Facilities Placed in
Service in Connection With Low-income Communities.--
``(1) In general.--In the case of any qualified solar and
wind facility with respect to which the Secretary makes an
allocation of environmental justice solar and wind capacity
limitation under paragraph (4)--
``(A) the energy percentage otherwise determined
under paragraph (2) or (5) of subsection (a) with
respect to any eligible property which is part of such
facility shall be increased by--
[[Page 136 STAT. 1922]]
``(i) in the case of a facility described in
subclause (I) of paragraph (2)(A)(iii) and not
described in subclause (II) of such paragraph, 10
percentage points, and
``(ii) in the case of a facility described in
subclause (II) of paragraph (2)(A)(iii), 20
percentage points, and
``(B) the increase in the credit determined under
subsection (a) by reason of this subsection for any
taxable year with respect to all property which is part
of such facility shall not exceed the amount which bears
the same ratio to the amount of such increase
(determined without regard to this subparagraph) as--
``(i) the environmental justice solar and wind
capacity limitation allocated to such facility,
bears to
``(ii) the total megawatt nameplate capacity
of such facility, as measured in direct current.
``(2) Qualified solar and wind facility.--For purposes of
this subsection--
``(A) <<NOTE: Definition.>> In general.--The term
`qualified solar and wind facility' means any facility--
``(i) which generates electricity solely from
property described in section 45(d)(1) or in
clause (i) or (vi) of subsection (a)(3)(A),
``(ii) which has a maximum net output of less
than 5 megawatts (as measured in alternating
current), and
``(iii) which--
``(I) is located in a low-income
community (as defined in section 45D(e))
or on Indian land (as defined in section
2601(2) of the Energy Policy Act of 1992
(25 U.S.C. 3501(2))), or
``(II) is part of a qualified low-
income residential building project or a
qualified low-income economic benefit
project.
``(B) Qualified low-income residential building
project.--A facility shall be treated as part of a
qualified low-income residential building project if--
``(i) such facility is installed on a
residential rental building which participates in
a covered housing program (as defined in section
41411(a) of the Violence Against Women Act of 1994
(34 U.S.C. 12491(a)(3)), a housing assistance
program administered by the Department of
Agriculture under title V of the Housing Act of
1949, a housing program administered by a tribally
designated housing entity (as defined in section
4(22) of the Native American Housing Assistance
and Self-Determination Act of 1996 (25 U.S.C.
4103(22))) or such other affordable housing
programs as the Secretary may provide, and
``(ii) the financial benefits of the
electricity produced by such facility are
allocated equitably among the occupants of the
dwelling units of such building.
``(C) Qualified low-income economic benefit
project.--A facility shall be treated as part of a
qualified low-income economic benefit project if at
least 50 percent of the financial benefits of the
electricity produced by such facility are provided to
households with income of--
[[Page 136 STAT. 1923]]
``(i) less than 200 percent of the poverty
line (as defined in section 36B(d)(3)(A))
applicable to a family of the size involved, or
``(ii) less than 80 percent of area median
gross income (as determined under section
142(d)(2)(B)).
``(D) Financial benefit.--For purposes of
subparagraphs (B) and (C), electricity acquired at a
below-market rate shall not fail to be taken into
account as a financial benefit.
``(3) <<NOTE: Definition.>> Eligible property.--For
purposes of this section, the term `eligible property' means
energy property which--
``(A) is part of a facility described in section
45(d)(1) for which an election was made under subsection
(a)(5), or
``(B) is described in clause (i) or (vi) of
subsection (a)(3)(A),
including energy storage technology (as described in subsection
(a)(3)(A)(ix)) installed in connection with such energy
property.
``(4) Allocations.--
``(A) <<NOTE: Deadline.>> In general.--Not later
than 180 days after the date of enactment of this
subsection, the Secretary shall establish a program to
allocate amounts of environmental justice solar and wind
capacity limitation to qualified solar and wind
facilities. <<NOTE: Procedures.>> In establishing such
program and to carry out the purposes of this
subsection, the Secretary shall provide procedures to
allow for an efficient allocation process, including,
when determined appropriate, consideration of multiple
projects in a single application if such projects will
be placed in service by a single taxpayer.
``(B) Limitation.--The amount of environmental
justice solar and wind capacity limitation allocated by
the Secretary under subparagraph (A) during any calendar
year shall not exceed the annual capacity limitation
with respect to such year.
``(C) <<NOTE: Definition.>> Annual capacity
limitation.--For purposes of this paragraph, the term
`annual capacity limitation' means 1.8 gigawatts of
direct current capacity for each of calendar years 2023
and 2024, and zero thereafter.
``(D) Carryover of unused limitation.--If the annual
capacity limitation for any calendar year exceeds the
aggregate amount allocated for such year under this
paragraph, such limitation for the succeeding calendar
year shall be increased by the amount of such excess. No
amount may be carried under the preceding sentence to
any calendar year after 2024 except as provided in
section 48E(h)(4)(D)(ii).
``(E) Placed in service deadline.--
``(i) <<NOTE: Time period.>> In general.--
Paragraph (1) shall not apply with respect to any
property which is placed in service after the date
that is 4 years after the date of the allocation
with respect to the facility of which such
property is a part.
``(ii) Application of carryover.--Any amount
of environmental justice solar and wind capacity
limitation which expires under clause (i) during
any calendar year shall be taken into account as
an excess described in subparagraph (D) (or as an
increase in such excess)
[[Page 136 STAT. 1924]]
for such calendar year, subject to the limitation
imposed by the last sentence of such subparagraph.
``(5) <<NOTE: Regulations. Guidelines.>> Recapture.--The
Secretary shall, by regulations or other guidance, provide for
recapturing the benefit of any increase in the credit allowed
under subsection (a) by reason of this subsection with respect
to any property which ceases to be property eligible for such
increase (but which does not cease to be investment credit
property within the meaning of section
50(a)). <<NOTE: Determination. Time period.>> The period and
percentage of such recapture shall be determined under rules
similar to the rules of section 50(a). To the extent provided by
the Secretary, such recapture may not apply with respect to any
property if, within 12 months after the date the taxpayer
becomes aware (or reasonably should have become aware) of such
property ceasing to be property eligible for such increase, the
eligibility of such property for such increase is restored. The
preceding sentence shall not apply more than once with respect
to any facility.''.
(b) <<NOTE: 26 USC 48 note.>> Effective Date.--The amendments made
by this section shall take effect on January 1, 2023.
SEC. 13104. EXTENSION AND MODIFICATION OF CREDIT FOR CARBON OXIDE
SEQUESTRATION.
(a) Modification of Carbon Oxide Capture Requirements.--
(1) In general.--Section 45Q(d) <<NOTE: 26 USC 45Q.>> is
amended to read as follows:
``(d) <<NOTE: Definition.>> Qualified Facility.--For purposes of
this section, the term `qualified facility' means any industrial
facility or direct air capture facility--
``(1) <<NOTE: Effective date.>> the construction of which
begins before January 1, 2033, and either--
``(A) construction of carbon capture equipment
begins before such date, or
``(B) the original planning and design for such
facility includes installation of carbon capture
equipment, and
``(2) which--
``(A) in the case of a direct air capture facility,
captures not less than 1,000 metric tons of qualified
carbon oxide during the taxable year,
``(B) in the case of an electricity generating
facility--
``(i) captures not less than 18,750 metric
tons of qualified carbon oxide during the taxable
year, and
``(ii) with respect to any carbon capture
equipment for the applicable electric generating
unit at such facility, has a capture design
capacity of not less than 75 percent of the
baseline carbon oxide production of such unit, or
``(C) in the case of any other facility, captures
not less than 12,500 metric tons of qualified carbon
oxide during the taxable year.''.
(2) Definitions.--
(A) In general.--Section 45Q(e) is amended--
(i) by redesignating paragraphs (1) through
(3) as paragraphs (3) through (5), respectively,
and
(ii) by inserting after ``For purposes of this
section--'' the following new paragraphs:
[[Page 136 STAT. 1925]]
``(1) Applicable electric generating unit.--The term
`applicable electric generating unit' means the principal
electric generating unit for which the carbon capture equipment
is originally planned and designed.
``(2) Baseline carbon oxide production.--
``(A) <<NOTE: Time periods.>> In general.--The term
`baseline carbon oxide production' means either of the
following:
``(i) In the case of an applicable electric
generating unit which was originally placed in
service more than 1 year prior to the date on
which construction of the carbon capture equipment
begins, the average annual carbon oxide
production, by mass, from such unit during--
``(I) in the case of an applicable
electric generating unit which was
originally placed in service more than 1
year prior to the date on which
construction of the carbon capture
equipment begins and on or after the
date which is 3 years prior to the date
on which construction of such equipment
begins, the period beginning on the date
such unit was placed in service and
ending on the date on which construction
of such equipment began, and
``(II) in the case of an applicable
electric generating unit which was
originally placed in service more than 3
years prior to the date on which
construction of the carbon capture
equipment begins, the 3 years with the
highest annual carbon oxide production
during the 12-year period preceding the
date on which construction of such
equipment began.
``(ii) In the case of an applicable electric
generating unit which--
``(I) as of the date on which
construction of the carbon capture
equipment begins, is not yet placed in
service, or
``(II) was placed in service during
the 1-year period prior to the date on
which construction of the carbon capture
equipment begins,
the designed annual carbon oxide production, by
mass, as determined based on an assumed capacity
factor of 60 percent.
``(B) Capacity factor.--The term `capacity factor'
means the ratio (expressed as a percentage) of the
actual electric output from the applicable electric
generating unit to the potential electric output from
such unit.''.
(B) Conforming amendment.--Section
142(o)(1)(B) <<NOTE: 26 USC 142.>> is amended by
striking ``section 45Q(e)(1)'' and inserting ``section
45Q(e)(3)''.
(b) Modified Applicable Dollar Amount.--Section 45Q(b)(1)(A) is
amended--
(1) in clause (i)--
(A) in subclause (I), by striking ``the dollar
amount'' and all that follows through ``such period''
and inserting ``$17'', and
[[Page 136 STAT. 1926]]
(B) in subclause (II), by striking ``the dollar
amount'' and all that follows through ``such period''
and inserting ``$12'', and
(2) in clause (ii)--
(A) in subclause (I), by striking ``$50'' and
inserting ``$17'', and
(B) in subclause (II), by striking ``$35'' and
inserting ``$12''.
(c) Determination of Applicable Dollar Amount.--
(1) <<NOTE: Effective dates.>> In general.--Section
45Q(b)(1), as amended by the preceding provisions of this
Act, <<NOTE: 26 USC 45Q.>> is amended--
(A) by redesignating subparagraph (B) as
subparagraph (D), and
(B) by inserting after subparagraph (A) the
following new subparagraphs:
``(B) Special rule for direct air capture
facilities.--In the case of any qualified facility
described in subsection (d)(2)(A) which is placed in
service after December 31, 2022, the applicable dollar
amount shall be an amount equal to the applicable dollar
amount otherwise determined with respect to such
qualified facility under subparagraph (A), except that
such subparagraph shall be applied--
``(i) by substituting `$36' for `$17' each
place it appears, and
``(ii) by substituting `$26' for `$12' each
place it appears.
``(C) Applicable dollar amount for additional carbon
capture equipment.--In the case of any qualified
facility which is placed in service before January 1,
2023, if any additional carbon capture equipment is
installed at such facility and such equipment is placed
in service after December 31, 2022, the applicable
dollar amount shall be an amount equal to the applicable
dollar amount otherwise determined under this paragraph,
except that subparagraph (B) shall be applied--
``(i) by substituting `before January 1, 2023'
for `after December 31, 2022', and
``(ii) by substituting `the additional carbon
capture equipment installed at such qualified
facility' for `such qualified facility'.''.
(2) Conforming amendments.--
(A) Section 45Q(b)(1)(A) is amended by striking
``The applicable dollar amount'' and inserting ``Except
as provided in subparagraph (B) or (C), the applicable
dollar amount''.
(B) Section 45Q(b)(1)(D), as redesignated by
paragraph (1)(A), is amended by striking ``subparagraph
(A)'' and inserting ``subparagraph (A), (B), or (C)''.
(d) Wage and Apprenticeship Requirements.--Section 45Q is amended by
redesignating subsection (h) as subsection (i) and inserting after
subsection (g) following new subsection:
``(h) Increased Credit Amount for Qualified Facilities and Carbon
Capture Equipment.--
``(1) In general.--In the case of any qualified facility or
any carbon capture equipment which satisfy the requirements of
paragraph (2), the amount of the credit determined under
[[Page 136 STAT. 1927]]
subsection (a) shall be equal to such amount (determined without
regard to this sentence) multiplied by 5.
``(2) <<NOTE: Time
periods. Publication. Guidelines.>> Requirements.--The
requirements described in this paragraph are that--
``(A) with respect to any qualified facility the
construction of which begins on or after the date that
is 60 days after the Secretary publishes guidance with
respect to the requirements of paragraphs (3)(A) and
(4), as well as any carbon capture equipment placed in
service at such facility--
``(i) subject to subparagraph (B) of paragraph
(3), the taxpayer satisfies the requirements under
subparagraph (A) of such paragraph with respect to
such facility and equipment, and
``(ii) the taxpayer satisfies the requirements
under paragraph (4) with respect to the
construction of such facility and equipment,
``(B) with respect to any carbon capture equipment
the construction of which begins on or after the date
that is 60 days after the Secretary publishes guidance
with respect to the requirements of paragraphs (3)(A)
and (4), and which is installed at a qualified facility
the construction of which began prior to such date--
``(i) subject to subparagraph (B) of paragraph
(3), the taxpayer satisfies the requirements under
subparagraph (A) of such paragraph with respect to
such equipment, and
``(ii) the taxpayer satisfies the requirements
under paragraph (4) with respect to the
construction of such equipment, or
``(C) the construction of carbon capture equipment
begins prior to the date that is 60 days after the
Secretary publishes guidance with respect to the
requirements of paragraphs (3)(A) and (4), and such
equipment is installed at a qualified facility the
construction of which begins prior to such date.
``(3) <<NOTE: Applicability.>> Prevailing wage
requirements.--
``(A) In general.--The requirements described in
this subparagraph with respect to any qualified facility
and any carbon capture equipment placed in service at
such facility are that the taxpayer shall ensure that
any laborers and mechanics employed by the taxpayer or
any contractor or subcontractor in--
``(i) the construction of such facility or
equipment, and
``(ii) with respect to any taxable year, for
any portion of such taxable year which is within
the period described in paragraph (3)(A) or (4)(A)
of subsection (a), the alteration or repair of
such facility or such equipment,
shall be paid wages at rates not less than the
prevailing rates for construction, alteration, or repair
of a similar character in the locality in which such
facility and equipment are located as most recently
determined by the Secretary of Labor, in accordance with
subchapter IV of chapter 31 of title 40, United States
Code. For purposes
[[Page 136 STAT. 1928]]
of determining an increased credit amount under
paragraph (1) for a taxable year, the requirement under
clause (ii) of this subparagraph is applied to such
taxable year in which the alteration or repair of
qualified facility occurs.
``(B) Correction and penalty related to failure to
satisfy wage requirements.--Rules similar to the rules
of section 45(b)(7)(B) shall apply.
``(4) <<NOTE: Applicability.>> Apprenticeship
requirements.--Rules similar to the rules of section 45(b)(8)
shall apply.
``(5) <<NOTE: Determination. Requirements. Records.>>
Regulations and guidance.--The Secretary shall issue such
regulations or other guidance as the Secretary determines
necessary to carry out the purposes of this subsection,
including regulations or other guidance which provides for
requirements for recordkeeping or information reporting for
purposes of administering the requirements of this
subsection.''.
(e) Credit Reduced for Tax-exempt Bonds.--Section 45Q(f) <<NOTE: 26
USC 45Q.>> is amended--
(1) by striking the second paragraph (3), as added at the
end of such section by section 80402(e) of the Infrastructure
Investment and Jobs Act (Public Law 117-58), and
(2) by adding at the end the following new paragraph:
``(8) <<NOTE: Applicability.>> Credit reduced for tax-
exempt bonds.--Rules similar to the rule under section 45(b)(3)
shall apply for purposes of this section.''.
(f) Application of Section for Certain Carbon Capture Equipment.--
Section 45Q(g) is amended by inserting ``the earlier of January 1, 2023,
and'' before ``the end of the calendar year''.
(g) Election.--Section 45Q(f), as amended by subsection (e), is
amended by adding at the end the following new paragraph:
``(9) <<NOTE: Time period.>> Election.--For purposes of
paragraphs (3) and (4) of subsection (a), a person described in
paragraph (3)(A)(ii) may elect, at such time and in such manner
as the Secretary may prescribe, to have the 12-year period begin
on the first day of the first taxable year in which a credit
under this section is claimed with respect to carbon capture
equipment which is originally placed in service at a qualified
facility on or after the date of the enactment of the Bipartisan
Budget Act of 2018 (after application of paragraph (6), where
applicable) if--
``(A) no taxpayer claimed a credit under this
section with respect to such carbon capture equipment
for any prior taxable year,
``(B) the qualified facility at which such carbon
capture equipment is placed in service is located in an
area affected by a federally-declared disaster (as
defined by section 165(i)(5)(A)) after the carbon
capture equipment is originally placed in service, and
``(C) such federally-declared disaster results in a
cessation of the operation of the qualified facility or
the carbon capture equipment after such equipment is
originally placed in service.''.
(h) Regulations for Baseline Carbon Oxide Production.--Subsection
(i) of section 45Q, as redesignated by subsection (d), is amended--
(1) in paragraph (1), by striking ``and'',
(2) in paragraph (2), by striking the period at the end and
inserting ``, and'', and
[[Page 136 STAT. 1929]]
(3) by adding at the end the following new paragraph:
``(3) for purposes of subsection (d)(2)(B)(ii), adjust the
baseline carbon oxide production with respect to any applicable
electric generating unit at any electricity generating facility
if, after the date on which the carbon capture equipment is
placed in service, modifications which are chargeable to capital
account are made to such unit which result in a significant
increase or decrease in carbon oxide production.''.
(i) <<NOTE: Applicability. 26 USC 45Q note.>> Effective Dates.--
(1) In general.--Except as provided in paragraphs (2), (3),
and (4), the amendments made by this section shall apply to
facilities or equipment placed in service after December 31,
2022.
(2) Modification of carbon oxide capture requirements.--The
amendments made by subsection (a) shall apply to facilities or
equipment the construction of which begins after the date of
enactment of this Act.
(3) Application of section for certain carbon capture
equipment.--The amendments made by subsection (f) shall take
effect on the date of enactment of this Act.
(4) Election.--The amendments made by subsection (g) shall
apply to carbon oxide captured and disposed of after December
31, 2021.
SEC. 13105. ZERO-EMISSION NUCLEAR POWER PRODUCTION CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
is amended by adding at the end the following new section:
``SEC. 45U. <<NOTE: 26 USC 45U.>> ZERO-EMISSION NUCLEAR POWER
PRODUCTION CREDIT.
``(a) Amount of Credit.--For purposes of section 38, the zero-
emission nuclear power production credit for any taxable year is an
amount equal to the amount by which--
``(1) the product of--
``(A) 0.3 cents, multiplied by
``(B) the kilowatt hours of electricity--
``(i) produced by the taxpayer at a qualified
nuclear power facility, and
``(ii) sold by the taxpayer to an unrelated
person during the taxable year, exceeds
``(2) the reduction amount for such taxable year.
``(b) Definitions.--
``(1) Qualified nuclear power facility.--For purposes of
this section, the term `qualified nuclear power facility' means
any nuclear facility--
``(A) which is owned by the taxpayer and which uses
nuclear energy to produce electricity,
``(B) which is not an advanced nuclear power
facility as defined in subsection (d)(1) of section 45J,
and
``(C) which is placed in service before the date of
the enactment of this section.
``(2) Reduction amount.--
``(A) In general.--For purposes of this section, the
term `reduction amount' means, with respect to any
qualified nuclear power facility for any taxable year,
the amount equal to the lesser of--
``(i) the amount determined under subsection
(a)(1), or
[[Page 136 STAT. 1930]]
``(ii) the amount equal to 16 percent of the
excess of--
``(I) subject to subparagraph (B),
the gross receipts from any electricity
produced by such facility (including any
electricity services or products
provided in conjunction with the
electricity produced by such facility)
and sold to an unrelated person during
such taxable year, over
``(II) the amount equal to the
product of--
``(aa) 2.5 cents, multiplied
by
``(bb) the amount determined
under subsection (a)(1)(B).
``(B) Treatment of certain receipts.--
``(i) In general.--Subject to clause (iii),
the amount determined under subparagraph
(A)(ii)(I) shall include any amount received by
the taxpayer during the taxable year with respect
to the qualified nuclear power facility from a
zero-emission credit program.
For <<NOTE: Determination.>> purposes of
determining the amount received during such
taxable year, the taxpayer shall take into account
any reductions required under such program.
``(ii) Zero-emission credit program.--For
purposes of this subparagraph, the term `zero-
emission credit program' means any payments with
respect to a qualified nuclear power facility as a
result of any Federal, State or local government
program for, in whole or in part, the zero-
emission, zero-carbon, or air quality attributes
of any portion of the electricity produced by such
facility.
``(iii) Exclusion.--For purposes of clause
(i), any amount received by the taxpayer from a
zero-emission credit program shall be excluded
from the amount determined under subparagraph
(A)(ii)(I) if the full amount of the credit
calculated pursuant to subsection (a) (determined
without regard to this subparagraph) is used to
reduce payments from such zero-emission credit
program.
``(3) Electricity.--For purposes of this section, the term
`electricity' means the energy produced by a qualified nuclear
power facility from the conversion of nuclear fuel into electric
power.
``(c) Other Rules.--
``(1) Inflation adjustment.--The 0.3 cent amount in
subsection (a)(1)(A) and the 2.5 cent amount in subsection
(b)(2)(A)(ii)(II)(aa) shall each be adjusted by multiplying such
amount by the inflation adjustment factor (as determined under
section 45(e)(2), as applied by substituting `calendar year
2023' for `calendar year 1992' in subparagraph (B) thereof) for
the calendar year in which the sale occurs. If the 0.3 cent
amount as increased under this paragraph is not a multiple of
0.05 cent, such amount shall be rounded to the nearest multiple
of 0.05 cent. If the 2.5 cent amount as increased under this
paragraph is not a multiple of 0.1 cent, such amount shall be
rounded to the nearest multiple of 0.1 cent.
``(2) <<NOTE: Applicability.>> Special rules.--Rules
similar to the rules of paragraphs (1), (3), (4), and (5) of
section 45(e) shall apply for purposes of this section.
[[Page 136 STAT. 1931]]
``(d) Wage Requirements.--
``(1) Increased credit amount for qualified nuclear power
facilities.--In the case of any qualified nuclear power facility
which satisfies the requirements of paragraph (2)(A), the amount
of the credit determined under subsection (a) shall be equal to
such amount (as determined without regard to this sentence)
multiplied by 5.
``(2) Prevailing wage requirements.--
``(A) <<NOTE: Determination.>> In general.--The
requirements described in this subparagraph with respect
to any qualified nuclear power facility are that the
taxpayer shall ensure that any laborers and mechanics
employed by the taxpayer or any contractor or
subcontractor in the alteration or repair of such
facility shall be paid wages at rates not less than the
prevailing rates for alteration or repair of a similar
character in the locality in which such facility is
located as most recently determined by the Secretary of
Labor, in accordance with subchapter IV of chapter 31 of
title 40, United States Code.
``(B) Correction and penalty related to failure to
satisfy wage requirements.--Rules
similar <<NOTE: Applicability.>> to the rules of
section 45(b)(7)(B) shall apply.
``(3) <<NOTE: Determination. Requirements. Records.>>
Regulations and guidance.--The Secretary shall issue such
regulations or other guidance as the Secretary determines
necessary to carry out the purposes of this subsection,
including regulations or other guidance which provides for
requirements for recordkeeping or information reporting for
purposes of administering the requirements of this subsection.
``(e) Termination.--This section shall not apply to taxable years
beginning after December 31, 2032.''.
(b) Conforming Amendments.--
(1) <<NOTE: 26 USC 38.>> Section 38(b) is amended--
(A) in paragraph (32), by striking ``plus'' at the
end,
(B) in paragraph (33), by striking the period at the
end and inserting ``, plus'', and
(C) by adding at the end the following new
paragraph:
``(34) the zero-emission nuclear power production credit
determined under section 45U(a).''.
(2) The table of sections for subpart D of part IV of
subchapter A of chapter 1 <<NOTE: 26 USC 38 prec.>> is amended
by adding at the end the following new item:
``Sec. 45U. Zero-emission nuclear power production credit.''.
(c) <<NOTE: 26 USC 45U note.>> Effective Date.--This section shall
apply to electricity produced and sold after December 31, 2023, in
taxable years beginning after such date.
PART 2--CLEAN FUELS
SEC. 13201. EXTENSION OF INCENTIVES FOR BIODIESEL, RENEWABLE
DIESEL AND ALTERNATIVE FUELS.
(a) Biodiesel and Renewable Diesel Credit.--Section 40A(g) is
amended by striking ``December 31, 2022'' and inserting ``December 31,
2024''.
(b) Biodiesel Mixture Credit.--
(1) In general.--Section 6426(c)(6) is amended by striking
``December 31, 2022'' and inserting ``December 31, 2024''.
[[Page 136 STAT. 1932]]
(2) Fuels not used for taxable purposes.--Section
6427(e)(6)(B) is amended <<NOTE: 26 USC 6427.>> by striking
``December 31, 2022'' and inserting ``December 31, 2024''.
(c) Alternative Fuel Credit.--Section 6426(d)(5) is amended by
striking ``December 31, 2021'' and inserting ``December 31, 2024''.
(d) Alternative Fuel Mixture Credit.--Section 6426(e)(3) is amended
by striking ``December 31, 2021'' and inserting ``December 31, 2024''.
(e) Payments for Alternative Fuels.--Section 6427(e)(6)(C) is
amended by striking ``December 31, 2021'' and inserting ``December 31,
2024''.
(f) <<NOTE: 26 USC 40A note.>> Effective Date.--The amendments made
by this section shall apply to fuel sold or used after December 31,
2021.
(g) <<NOTE: Effective date. Deadlines. Claims. 26 USC 6426 note.>>
Special Rule.--In the case of any alternative fuel credit properly
determined under section 6426(d) of the Internal Revenue Code of 1986
for the period beginning on January 1, 2022, and ending with the close
of the last calendar quarter beginning before the date of the enactment
of this Act, such credit shall be allowed, and any refund or payment
attributable to such credit (including any payment under section 6427(e)
of such Code) shall be made, only in such manner as the Secretary of the
Treasury (or the Secretary's delegate) shall
provide. <<NOTE: Guidelines.>> Such Secretary shall issue guidance
within 30 days after the date of the enactment of this Act providing for
a one-time submission of claims covering periods described in the
preceding sentence. <<NOTE: Guidelines.>> Such guidance shall provide
for a 180-day period for the submission of such claims (in such manner
as prescribed by such Secretary) to begin not later than 30 days after
such guidance is issued. Such claims shall be paid by such Secretary not
later than 60 days after receipt. <<NOTE: Determination.>> If such
Secretary has not paid pursuant to a claim filed under this subsection
within 60 days after the date of the filing of such claim, the claim
shall be paid with interest from such date determined by using the
overpayment rate and method under section 6621 of such Code.
SEC. 13202. EXTENSION OF SECOND GENERATION BIOFUEL INCENTIVES.
(a) In General.--Section 40(b)(6)(J)(i) is amended by striking
``2022'' and inserting ``2025''.
(b) <<NOTE: 26 USC 40 note.>> Effective Date.--The amendment made
by subsection (a) shall apply to qualified second generation biofuel
production after December 31, 2021.
SEC. 13203. SUSTAINABLE AVIATION FUEL CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
is amended by inserting after section 40A the following new section:
``SEC. 40B. <<NOTE: Definitions. 26 USC 40B.>> SUSTAINABLE
AVIATION FUEL CREDIT.
``(a) In General.--For purposes of section 38, the sustainable
aviation fuel credit determined under this section for the taxable year
is, with respect to any sale or use of a qualified mixture which occurs
during such taxable year, an amount equal to the product of--
``(1) the number of gallons of sustainable aviation fuel in
such mixture, multiplied by
``(2) the sum of--
``(A) $1.25, plus
[[Page 136 STAT. 1933]]
``(B) <<NOTE: Applicability.>> the applicable
supplementary amount with respect to such sustainable
aviation fuel.
``(b) Applicable Supplementary Amount.--For purposes of this
section, the term `applicable supplementary amount' means, with respect
to any sustainable aviation fuel, an amount equal to $0.01 for each
percentage point by which the lifecycle greenhouse gas emissions
reduction percentage with respect to such fuel exceeds 50 percent. In no
event shall the applicable supplementary amount determined under this
subsection exceed $0.50.
``(c) Qualified Mixture.--For purposes of this section, the term
`qualified mixture' means a mixture of sustainable aviation fuel and
kerosene if--
``(1) such mixture is produced by the taxpayer in the United
States,
``(2) such mixture is used by the taxpayer (or sold by the
taxpayer for use) in an aircraft,
``(3) such sale or use is in the ordinary course of a trade
or business of the taxpayer, and
``(4) the transfer of such mixture to the fuel tank of such
aircraft occurs in the United States.
``(d) Sustainable Aviation Fuel.--
``(1) In general.--For purposes of this section, the term
`sustainable aviation fuel' means liquid fuel, the portion of
which is not kerosene, which--
``(A) meets the requirements of--
``(i) ASTM International Standard D7566, or
``(ii) the Fischer Tropsch provisions of ASTM
International Standard D1655, Annex A1,
``(B) is not derived from coprocessing an applicable
material (or materials derived from an applicable
material) with a feedstock which is not biomass,
``(C) is not derived from palm fatty acid
distillates or petroleum, and
``(D) has been certified in accordance with
subsection (e) as having a lifecycle greenhouse gas
emissions reduction percentage of at least 50 percent.
``(2) Definitions.--In this subsection--
``(A) Applicable material.--The term `applicable
material' means--
``(i) monoglycerides, diglycerides, and
triglycerides,
``(ii) free fatty acids, and
``(iii) fatty acid esters.
``(B) Biomass.--The term `biomass' has the same
meaning given such term in section 45K(c)(3).
``(e) Lifecycle Greenhouse Gas Emissions Reduction Percentage.--For
purposes of this section, the term `lifecycle greenhouse gas emissions
reduction percentage' means, with respect to any sustainable aviation
fuel, the percentage reduction in lifecycle greenhouse gas emissions
achieved by such fuel as compared with petroleum-based jet fuel, as
defined in accordance with--
``(1) the most recent Carbon Offsetting and Reduction Scheme
for International Aviation which has been adopted by the
International Civil Aviation Organization with the agreement of
the United States, or
``(2) any similar methodology which satisfies the criteria
under section 211(o)(1)(H) of the Clean Air Act (42 U.S.C.
[[Page 136 STAT. 1934]]
7545(o)(1)(H)), as in effect on the date of enactment of this
section.
``(f) Registration of Sustainable Aviation Fuel Producers.--No
credit shall be allowed under this section with respect to any
sustainable aviation fuel unless the producer or importer of such fuel--
``(1) is registered with the Secretary under section 4101,
and
``(2) provides--
``(A) <<NOTE: Certification. Compliance. Requirements.>>
certification (in such form and manner as the Secretary
shall prescribe) from an unrelated party demonstrating
compliance with--
``(i) any general requirements, supply chain
traceability requirements, and information
transmission requirements established under the
Carbon Offsetting and Reduction Scheme for
International Aviation described in paragraph (1)
of subsection (e), or
``(ii) in the case of any methodology
established under paragraph (2) of such
subsection, requirements similar to the
requirements described in clause (i), and
``(B) such other information with respect to such
fuel as the Secretary may require for purposes of
carrying out this section.
``(g) Coordination With Credit Against Excise Tax.--The amount of
the credit determined under this section with respect to any sustainable
aviation fuel shall, under rules prescribed by the Secretary, be
properly reduced to take into account any benefit provided with respect
to such sustainable aviation fuel solely by reason of the application of
section 6426 or 6427(e).
``(h) Termination.--This section shall not apply to any sale or use
after December 31, 2024.''.
(b) Credit Made Part of General Business Credit.-- Section 38(b), as
amended by the preceding provisions of this Act, <<NOTE: 26 USC 38.>>
is amended by striking ``plus'' at the end of paragraph (33), by
striking the period at the end of paragraph (34) and inserting ``,
plus'', and by inserting after paragraph (34) the following new
paragraph:
``(35) the sustainable aviation fuel credit determined under
section 40B.''.
(c) Coordination With Biodiesel Incentives.--
(1) In general.--Section 40A(d)(1) is amended by inserting
``or 40B'' after ``determined under section 40''.
(2) Conforming amendment.--Section 40A(f) is amended by
striking paragraph (4).
(d) Sustainable Aviation Fuel Added to Credit for Alcohol Fuel,
Biodiesel, and Alternative Fuel Mixtures.--
(1) In general.--Section 6426 is amended by adding at the
end the following new subsection:
``(k) Sustainable Aviation Fuel Credit.--
``(1) In general.--For purposes of this section, the
sustainable aviation fuel credit for the taxable year is, with
respect to any sale or use of a qualified mixture, an amount
equal to the product of--
``(A) the number of gallons of sustainable aviation
fuel in such mixture, multiplied by
``(B) the sum of--
[[Page 136 STAT. 1935]]
``(i) $1.25, plus
``(ii) <<NOTE: Applicability.>> the
applicable supplementary amount with respect to
such sustainable aviation fuel.
``(2) Definitions.--Any term used in this subsection which
is also used in section 40B shall have the meaning given such
term by section 40B.
``(3) <<NOTE: Applicability.>> Registration requirement.--
For purposes of this subsection, rules similar to the rules of
section 40B(f) shall apply.''.
(2) Conforming amendments.--
(A) <<NOTE: 26 USC 6426.>> Section 6426 is
amended--
(i) in subsection (a)(1), by striking ``and
(e)'' and inserting ``(e), and (k)'', and
(ii) in subsection (h), by striking ``under
section 40 or 40A'' and inserting ``under section
40, 40A, or 40B''.
(B) Section 6427(e) is amended--
(i) in the heading, by striking ``or
Alternative Fuel'' and inserting, ``Alternative
Fuel, or Sustainable Aviation Fuel'',
(ii) in paragraph (1), by inserting ``or the
sustainable aviation fuel mixture credit'' after
``alternative fuel mixture credit'', and
(iii) in paragraph (6)--
(I) in subparagraph (C), by striking
``and'' at the end,
(II) in subparagraph (D), by
striking the period at the end and
inserting ``, and'', and
(III) by adding at the end the
following new subparagraph:
``(E) any qualified mixture of sustainable aviation
fuel (as defined in section 6426(k)(3)) sold or used
after December 31, 2024.''.
(C) Section 4101(a)(1) is amended by inserting
``every person producing or importing sustainable
aviation fuel (as defined in section 40B),'' before
``and every person producing second generation
biofuel''.
(D) The table of sections for subpart D of
subchapter A of chapter 1 is <<NOTE: 26 USC 38 prec.>>
amended by inserting after the item relating to section
40A the following new item:
``Sec. 40B. Sustainable aviation fuel credit.''.
(e) Amount of Credit Included in Gross Income.--Section 87 is
amended by striking ``and'' in paragraph (1), by striking the period at
the end of paragraph (2) and inserting ``, and'', and by adding at the
end the following new paragraph:
``(3) the sustainable aviation fuel credit determined with
respect to the taxpayer for the taxable year under section
40B(a).''.
(f) <<NOTE: 26 USC 40B note.>> Effective Date.--The amendments made
by this section shall apply to fuel sold or used after December 31,
2022.
SEC. 13204. CLEAN HYDROGEN.
(a) Credit for Production of Clean Hydrogen.--
(1) In general.--Subpart D of part IV of subchapter A of
chapter 1, as amended by the preceding provisions of this Act,
is amended by adding at the end the following new section:
[[Page 136 STAT. 1936]]
``SEC. 45V. <<NOTE: 26 USC 45V.>> CREDIT FOR PRODUCTION OF CLEAN
HYDROGEN.
``(a) Amount of Credit.--For purposes of section 38, the clean
hydrogen production credit for any taxable year is an amount equal to
the product of--
``(1) <<NOTE: Time period.>> the kilograms of qualified
clean hydrogen produced by the taxpayer during such taxable year
at a qualified clean hydrogen production facility during the 10-
year period beginning on the date such facility was originally
placed in service, multiplied by
``(2) the applicable amount (as determined under subsection
(b)) with respect to such hydrogen.
``(b) Applicable Amount.--
``(1) In general.--For purposes of subsection (a)(2), the
applicable amount shall be an amount equal to the applicable
percentage of $0.60. If any amount as determined under the
preceding sentence is not a multiple of 0.1 cent, such amount
shall be rounded to the nearest multiple of 0.1 cent.
``(2) <<NOTE: Determination.>> Applicable percentage.--For
purposes of paragraph (1), the applicable percentage shall be
determined as follows:
``(A) In the case of any qualified clean hydrogen
which is produced through a process that results in a
lifecycle greenhouse gas emissions rate of--
``(i) not greater than 4 kilograms of CO2e per
kilogram of hydrogen, and
``(ii) not less than 2.5 kilograms of CO2e per
kilogram of hydrogen,
the applicable percentage shall be 20 percent.
``(B) In the case of any qualified clean hydrogen
which is produced through a process that results in a
lifecycle greenhouse gas emissions rate of--
``(i) less than 2.5 kilograms of CO2e per
kilogram of hydrogen, and
``(ii) not less than 1.5 kilograms of CO2e per
kilogram of hydrogen,
the applicable percentage shall be 25 percent.
``(C) In the case of any qualified clean hydrogen
which is produced through a process that results in a
lifecycle greenhouse gas emissions rate of--
``(i) less than 1.5 kilograms of CO2e per
kilogram of hydrogen, and
``(ii) not less than 0.45 kilograms of CO2e
per kilogram of hydrogen,
the applicable percentage shall be 33.4 percent.
``(D) In the case of any qualified clean hydrogen
which is produced through a process that results in a
lifecycle greenhouse gas emissions rate of less than
0.45 kilograms of CO2e per kilogram of hydrogen, the
applicable percentage shall be 100 percent.
``(3) Inflation adjustment.--The $0.60 amount in paragraph
(1) shall be adjusted by multiplying such amount by the
inflation adjustment factor (as determined under section
45(e)(2), determined by substituting `2022' for `1992' in
subparagraph (B) thereof) for the calendar year in which the
qualified clean hydrogen is produced. If any amount as increased
under the preceding sentence is not a multiple of 0.1 cent, such
amount shall be rounded to the nearest multiple of 0.1 cent.
``(c) Definitions.--For purposes of this section--
[[Page 136 STAT. 1937]]
``(1) Lifecycle greenhouse gas emissions.--
``(A) In general.--Subject to subparagraph (B), the
term `lifecycle greenhouse gas emissions' has the same
meaning given such term under subparagraph (H) of
section 211(o)(1) of the Clean Air Act (42 U.S.C.
7545(o)(1)), as in effect on the date of enactment of
this section.
``(B) GREET model.--The term `lifecycle greenhouse
gas emissions' shall only include emissions through the
point of production (well-to-gate), as determined under
the most recent Greenhouse gases, Regulated Emissions,
and Energy use in Transportation model (commonly
referred to as the `GREET model') developed by Argonne
National Laboratory, or a successor model (as determined
by the Secretary).
``(2) Qualified clean hydrogen.--
``(A) In general.--The term `qualified clean
hydrogen' means hydrogen which is produced through a
process that results in a lifecycle greenhouse gas
emissions rate of not greater than 4 kilograms of CO2e
per kilogram of hydrogen.
``(B) Additional requirements.--Such term shall not
include any hydrogen unless--
``(i) such hydrogen is produced--
``(I) in the United States (as
defined in section 638(1)) or a
possession of the United States (as
defined in section 638(2)),
``(II) in the ordinary course of a
trade or business of the taxpayer, and
``(III) for sale or use, and
``(ii) the production and sale or use of such
hydrogen is verified by an unrelated party.
``(C) <<NOTE: Determination.>> Provisional
emissions rate.--In the case of any hydrogen for which a
lifecycle greenhouse gas emissions rate has not been
determined for purposes of this section, a taxpayer
producing such hydrogen may file a petition with the
Secretary for determination of the lifecycle greenhouse
gas emissions rate with respect to such hydrogen.
``(3) Qualified clean hydrogen production facility.--The
term `qualified clean hydrogen production facility' means a
facility--
``(A) owned by the taxpayer,
``(B) which produces qualified clean hydrogen, and
``(C) <<NOTE: Effective date.>> the construction of
which begins before January 1, 2033.
``(d) Special Rules.--
``(1) Treatment of facilities owned by more than 1
taxpayer.--Rules similar <<NOTE: Applicability.>> to the rules
section 45(e)(3) shall apply for purposes of this section.
``(2) Coordination with credit for carbon oxide
sequestration.--No credit shall be allowed under this section
with respect to any qualified clean hydrogen produced at a
facility which includes carbon capture equipment for which a
credit is allowed to any taxpayer under section 45Q for the
taxable year or any prior taxable year.
``(e) Increased Credit Amount for Qualified Clean Hydrogen
Production Facilities.--
``(1) In general.--In the case of any qualified clean
hydrogen production facility which satisfies the requirements
[[Page 136 STAT. 1938]]
of paragraph (2), the amount of the credit determined under
subsection (a) with respect to qualified clean hydrogen
described in subsection (b)(2) shall be equal to such amount
(determined without regard to this sentence) multiplied by 5.
``(2) Requirements.--A facility meets the requirements of
this paragraph if it is one of the following:
``(A) A facility--
``(i) <<NOTE: Effective date. Time
period. Publication. Guidelines.>> the
construction of which begins prior to the date
that is 60 days after the Secretary publishes
guidance with respect to the requirements of
paragraphs (3)(A) and (4), and
``(ii) which meets the requirements of
paragraph (3)(A) with respect to alteration or
repair of such facility which occurs after such
date.
``(B) A facility which satisfies the requirements of
paragraphs (3)(A) and (4).
``(3) <<NOTE: Applicability.>> Prevailing wage
requirements.--
``(A) <<NOTE: Determination.>> In general.--The
requirements described in this subparagraph with respect
to any qualified clean hydrogen production facility are
that the taxpayer shall ensure that any laborers and
mechanics employed by the taxpayer or any contractor or
subcontractor in--
``(i) the construction of such facility, and
``(ii) with respect to any taxable year, for
any portion of such taxable year which is within
the period described in subsection (a)(2), the
alteration or repair of such facility,
shall be paid wages at rates not less than the
prevailing rates for construction, alteration, or repair
of a similar character in the locality in which such
facility is located as most recently determined by the
Secretary of Labor, in accordance with subchapter IV of
chapter 31 of title 40, United States Code. For purposes
of determining an increased credit amount under
paragraph (1) for a taxable year, the requirement under
clause (ii) of this subparagraph is applied to such
taxable year in which the alteration or repair of
qualified facility occurs.
``(B) Correction and penalty related to failure to
satisfy wage requirements.--Rules similar to the rules
of section 45(b)(7)(B) shall apply.
``(4) <<NOTE: Applicability.>> Apprenticeship
requirements.--Rules similar to the rules of section 45(b)(8)
shall apply.
``(5) <<NOTE: Determination. Requirements. Records.>>
Regulations and guidance.--The Secretary shall issue such
regulations or other guidance as the Secretary determines
necessary to carry out the purposes of this subsection,
including regulations or other guidance which provides for
requirements for recordkeeping or information reporting for
purposes of administering the requirements of this subsection.
``(f) <<NOTE: Deadline. Guidelines. Determinations.>>
Regulations.--Not later than 1 year after the date of enactment of this
section, the Secretary shall issue regulations or other guidance to
carry out the purposes of this section, including regulations or other
guidance for determining lifecycle greenhouse gas emissions.''.
(2) Credit reduced for tax-exempt bonds.--Section 45V(d), as
added by this section, <<NOTE: 26 USC 45V.>> is amended by
adding at the end the following new paragraph:
[[Page 136 STAT. 1939]]
``(3) <<NOTE: Applicability.>> Credit reduced for tax-
exempt bonds.--Rules similar to the rule under section 45(b)(3)
shall apply for purposes of this section.''.
(3) Modification of existing facilities.--Section 45V(d), as
added and amended by the preceding provisions of this
section, <<NOTE: 26 USC 45V.>> is amended by adding at the end
the following new paragraph:
``(4) Modification of existing facilities.--For purposes of
subsection (a)(1), in the case of any facility which--
``(A) <<NOTE: Effective date.>> was originally
placed in service before January 1, 2023, and, prior to
the modification described in subparagraph (B), did not
produce qualified clean hydrogen, and
``(B) after the date such facility was originally
placed in service--
``(i) is modified to produce qualified clean
hydrogen, and
``(ii) amounts paid or incurred with respect
to such modification are properly chargeable to
capital account of the taxpayer,
such facility shall be deemed to have been originally placed in
service as of the date that the property required to complete
the modification described in subparagraph (B) is placed in
service.''.
(4) Conforming amendments.--
(A) Section 38(b), as amended by the preceding
provisions of this Act, is amended--
(i) in paragraph (34), by striking ``plus'' at
the end,
(ii) in paragraph (35), by striking the period
at the end and inserting ``, plus'', and
(iii) by adding at the end the following new
paragraph:
``(36) the clean hydrogen production credit determined under
section 45V(a).''.
(B) The table of sections for subpart D of part IV
of subchapter A of chapter 1, as amended by the
preceding provisions of this Act, <<NOTE: 26 USC 38
prec.>> is amended by adding at the end the following
new item:
``Sec. 45V. Credit for production of clean hydrogen.''.
(5) <<NOTE: Applicability. 26 USC 45V note.>> Effective
dates.--
(A) In general.--The amendments made by paragraphs
(1) and (4) of this subsection shall apply to hydrogen
produced after December 31, 2022.
(B) Credit reduced for tax-exempt bonds.--The
amendment made by paragraph (2) shall apply to
facilities the construction of which begins after the
date of enactment of this Act.
(C) Modification of existing facilities.--The
amendment made by paragraph (3) shall apply to
modifications made after December 31, 2022.
(b) Credit for Electricity Produced From Renewable Resources Allowed
if Electricity Is Used to Produce Clean Hydrogen.--
(1) In general.--Section 45(e), as amended by the preceding
provisions of this Act, is amended by adding at the end the
following new paragraph:
[[Page 136 STAT. 1940]]
``(13) Special rule for electricity used at a qualified
clean hydrogen production facility.--Electricity produced by the
taxpayer shall be treated as sold by such taxpayer to an
unrelated person during the taxable year if--
``(A) such electricity is used during such taxable
year by the taxpayer or a person related to the taxpayer
at a qualified clean hydrogen production facility (as
defined in section 45V(c)(3)) to produce qualified clean
hydrogen (as defined in section 45V(c)(2)), and
``(B) such use and production is verified (in such
form or manner as the Secretary may prescribe) by an
unrelated third party.''.
(2) Similar rule for zero-emission nuclear power production
credit.--Subsection (c)(2) of section 45U, as added by section
13105 of this Act, <<NOTE: 26 USC 45U.>> is amended by striking
``and (5)'' and inserting ``(5), and (13)''.
(3) <<NOTE: 26 USC 45 note.>> Effective date.--The
amendments made by this subsection shall apply to electricity
produced after December 31, 2022.
(c) Election to Treat Clean Hydrogen Production Facilities as Energy
Property.--
(1) In general.--Section 48(a), as amended by the preceding
provisions of this Act, is amended--
(A) by redesignating paragraph (15) as paragraph
(16), and
(B) by inserting after paragraph (14) the following
new paragraph:
``(15) Election to treat clean hydrogen production
facilities as energy property.--
``(A) In general.--In the case of any qualified
property (as defined in paragraph (5)(D)) which is part
of a specified clean hydrogen production facility--
``(i) such property shall be treated as energy
property for purposes of this section, and
``(ii) the energy percentage with respect to
such property is--
``(I) in the case of a facility
which is designed and reasonably
expected to produce qualified clean
hydrogen which is described in a
subparagraph (A) of section 45V(b)(2),
1.2 percent,
``(II) in the case of a facility
which is designed and reasonably
expected to produce qualified clean
hydrogen which is described in a
subparagraph (B) of such section, 1.5
percent,
``(III) in the case of a facility
which is designed and reasonably
expected to produce qualified clean
hydrogen which is described in a
subparagraph (C) of such section, 2
percent, and
``(IV) in the case of a facility
which is designed and reasonably
expected to produce qualified clean
hydrogen which is described in
subparagraph (D) of such section, 6
percent.
``(B) Denial of production credit.--No credit shall
be allowed under section 45V or section 45Q for any
taxable year with respect to any specified clean
hydrogen production facility or any carbon capture
equipment included at such facility.
[[Page 136 STAT. 1941]]
``(C) Specified clean hydrogen production
facility.--For purposes <<NOTE: Definition.>> of this
paragraph, the term `specified clean hydrogen production
facility' means any qualified clean hydrogen production
facility (as defined in section 45V(c)(3))--
``(i) <<NOTE: Effective date.>> which is
placed in service after December 31, 2022,
``(ii) with respect to which--
``(I) no credit has been allowed
under section 45V or 45Q, and
``(II) the taxpayer makes an
irrevocable election to have this
paragraph apply, and
``(iii) <<NOTE: Verification.>> for which an
unrelated third party has verified (in such form
or manner as the Secretary may prescribe) that
such facility produces hydrogen through a process
which results in lifecycle greenhouse gas
emissions which are consistent with the hydrogen
that such facility was designed and expected to
produce under subparagraph (A)(ii).
``(D) <<NOTE: Definition.>> Qualified clean
hydrogen.--For purposes of this paragraph, the term
`qualified clean hydrogen' has the meaning given such
term by section 45V(c)(2).
``(E) <<NOTE: Guidelines. Determination.>>
Regulations.--The Secretary shall issue such regulations
or other guidance as the Secretary determines necessary
to carry out the purposes of this section, including
regulations or other guidance which recaptures so much
of any credit allowed under this section as exceeds the
amount of the credit which would have been allowed if
the expected production were consistent with the actual
verified production (or all of the credit so allowed in
the absence of such verification).''.
(2) Conforming amendment.--Paragraph (9)(A)(i) of section
48(a), as added by section 13102, <<NOTE: 26 USC 48.>> is
amended by inserting ``and paragraph (15)'' after ``paragraphs
(1) through (8)''.
(3) <<NOTE: Applicability. 26 USC 48 note.>> Effective
date.--The amendments made by this subsection shall apply to
property placed in service after December 31, 2022, and, for any
property the construction of which begins prior to January 1,
2023, only to the extent of the basis thereof attributable to
the construction, reconstruction, or erection after December 31,
2022.
(d) Termination of Excise Tax Credit for Hydrogen.--
(1) In general.--Section 6426(d)(2) is amended by striking
subparagraph (D) and by redesignating subparagraphs (E), (F),
and (G) as subparagraphs (D), (E), and (F), respectively.
(2) Conforming amendment.--Section 6426(e)(2) is amended by
striking ``(F)'' and inserting ``(E)''.
(3) <<NOTE: 26 USC 6426 note.>> Effective date.--The
amendments made by this subsection shall apply to fuel sold or
used after December 31, 2022.
PART 3--CLEAN ENERGY AND EFFICIENCY INCENTIVES FOR INDIVIDUALS
SEC. 13301. EXTENSION, INCREASE, AND MODIFICATIONS OF NONBUSINESS
ENERGY PROPERTY CREDIT.
(a) Extension of Credit.--Section 25C(g)(2) is amended by striking
``December 31, 2021'' and inserting ``December 31, 2032''.
[[Page 136 STAT. 1942]]
(b) <<NOTE: 26 USC 25C.>> Allowance of Credit.--Section 25C(a) is
amended to read as follows:
``(a) Allowance of Credit.--In the case of an individual, there
shall be allowed as a credit against the tax imposed by this chapter for
the taxable year an amount equal to 30 percent of the sum of--
``(1) the amount paid or incurred by the taxpayer for
qualified energy efficiency improvements installed during such
taxable year, and
``(2) the amount of the residential energy property
expenditures paid or incurred by the taxpayer during such
taxable year.''.
(c) Application of Annual Limitation in Lieu of Lifetime
Limitation.--Section 25C(b) is amended to read as follows:
``(b) Limitations.--
``(1) In general.--The credit allowed under this section
with respect to any taxpayer for any taxable year shall not
exceed $1,200.
``(2) Energy property.--The credit allowed under this
section by reason of subsection (a)(2) with respect to any
taxpayer for any taxable year shall not exceed, with respect to
any item of qualified energy property, $600.
``(3) Windows.--The credit allowed under this section by
reason of subsection (a)(1) with respect to any taxpayer for any
taxable year shall not exceed, in the aggregate with respect to
all exterior windows and skylights, $600.
``(4) Doors.--The credit allowed under this section by
reason of subsection (a)(1) with respect to any taxpayer for any
taxable year shall not exceed--
``(A) $250 in the case of any exterior door, and
``(B) $500 in the aggregate with respect to all
exterior doors.
``(5) Heat pump and heat pump water heaters; biomass stoves
and boilers.--Notwithstanding paragraphs (1) and (2), the credit
allowed under this section by reason of subsection (a)(2) with
respect to any taxpayer for any taxable year shall not, in the
aggregate, exceed $2,000 with respect to amounts paid or
incurred for property described in clauses (i) and (ii) of
subsection (d)(2)(A) and in subsection (d)(2)(B).''.
(d) Modifications Related to Qualified Energy Efficiency
Improvements.--
(1) Standards for energy efficient building envelope
components.--Section 25C(c)(2) is amended by striking ``meets--
'' and all that follows through the period at the end and
inserting the following: ``meets--
``(A) in the case of an exterior window or skylight,
Energy Star most efficient certification requirements,
``(B) in the case of an exterior door, applicable
Energy Star requirements, and
``(C) <<NOTE: Effective date.>> in the case of any
other component, the prescriptive criteria for such
component established by the most recent International
Energy Conservation Code standard in effect as of the
beginning of the calendar year which is 2 years prior to
the calendar year in which such component is placed in
service.''.
(2) Roofs not treated as building envelope components.--
Section 25C(c)(3) is amended by adding ``and'' at the
[[Page 136 STAT. 1943]]
end of subparagraph (B), by striking ``, and'' at the end of
subparagraph (C) and inserting a period, and by striking
subparagraph (D).
(3) Air sealing insulation added to definition of building
envelope component.--Section 25C(c)(3)(A) <<NOTE: 26 USC 25C.>>
is amended by inserting ``, including air sealing material or
system,'' after ``material or system''.
(e) Modification of Residential Energy Property Expenditures.--
Section 25C(d) is amended to read as follows:
``(d) <<NOTE: Definitions.>> Residential Energy Property
Expenditures.--For purposes of this section--
``(1) In general.--The term `residential energy property
expenditures' means expenditures made by the taxpayer for
qualified energy property which is--
``(A) installed on or in connection with a dwelling
unit located in the United States and used as a
residence by the taxpayer, and
``(B) originally placed in service by the taxpayer.
Such term includes expenditures for labor costs properly
allocable to the onsite preparation, assembly, or original
installation of the property.
``(2) <<NOTE: Effective dates.>> Qualified energy
property.--The term `qualified energy property' means any of the
following:
``(A) Any of the following which meet or exceed the
highest efficiency tier (not including any advanced
tier) established by the Consortium for Energy
Efficiency which is in effect as of the beginning of the
calendar year in which the property is placed in
service:
``(i) An electric or natural gas heat pump
water heater.
``(ii) An electric or natural gas heat pump.
``(iii) A central air conditioner.
``(iv) A natural gas, propane, or oil water
heater.
``(v) A natural gas, propane, or oil furnace
or hot water boiler.
``(B) A biomass stove or boiler which--
``(i) uses the burning of biomass fuel to heat
a dwelling unit located in the United States and
used as a residence by the taxpayer, or to heat
water for use in such a dwelling unit, and
``(ii) has a thermal efficiency rating of at
least 75 percent (measured by the higher heating
value of the fuel).
``(C) Any oil furnace or hot water boiler which--
``(i) is placed in service after December 31,
2022, and before January 1, 2027, and--
``(I) meets or exceeds 2021 Energy
Star efficiency criteria, and
``(II) is rated by the manufacturer
for use with fuel blends at least 20
percent of the volume of which consists
of an eligible fuel, or
``(ii) is placed in service after December 31,
2026, and--
``(I) achieves an annual fuel
utilization efficiency rate of not less
than 90, and
[[Page 136 STAT. 1944]]
``(II) is rated by the manufacturer
for use with fuel blends at least 50
percent of the volume of which consists
of an eligible fuel.
``(D) Any improvement to, or replacement of, a
panelboard, sub-panelboard, branch circuits, or feeders
which--
``(i) is installed in a manner consistent with
the National Electric Code,
``(ii) has a load capacity of not less than
200 amps,
``(iii) is installed in conjunction with--
``(I) any qualified energy
efficiency improvements, or
``(II) any qualified energy property
described in subparagraphs (A) through
(C) for which a credit is allowed under
this section for expenditures with
respect to such property, and
``(iv) enables the installation and use of any
property described in subclause (I) or (II) of
clause (iii).
``(3) Eligible fuel.--For purposes of paragraph (2), the
term `eligible fuel' means--
``(A) biodiesel and renewable diesel (within the
meaning of section 40A), and
``(B) second generation biofuel (within the meaning
of section 40).''.
(f) Home Energy Audits.--
(1) In general.--Section 25C(a), as amended by subsection
(b), is amended <<NOTE: 26 USC 25C.>> by striking ``and'' at
the end of paragraph (1), by striking the period at the end of
paragraph (2) and inserting ``, and'', and by adding at the end
the following new paragraph:
``(3) the amount paid or incurred by the taxpayer during the
taxable year for home energy audits.''.
(2) Limitation.--Section 25C(b), as amended by subsection
(c), is amended adding at the end the following new paragraph:
``(6) Home energy audits.--
``(A) Dollar limitation.--The amount of the credit
allowed under this section by reason of subsection
(a)(3) shall not exceed $150.
``(B) Substantiation requirement.--No credit shall
be allowed under this section by reason of subsection
(a)(3) unless the taxpayer includes with the taxpayer's
return of tax such information or documentation as the
Secretary may require.''.
(3) Home energy audits.--
(A) In general.--Section 25C is amended by
redesignating subsections (e), (f), and (g), as
subsections (f), (g), and (h), respectively, and by
inserting after subsection (d) the following new
subsection:
``(e) <<NOTE: Definition.>> Home Energy Audits.--For purposes of
this section, the term `home energy audit' means an inspection and
written report with respect to a dwelling unit located in the United
States and owned or used by the taxpayer as the taxpayer's principal
residence (within the meaning of section 121) which--
``(1) <<NOTE: Cost estimates.>> identifies the most
significant and cost-effective energy efficiency improvements
with respect to such dwelling unit, including an estimate of the
energy and cost savings with respect to each such improvement,
and
[[Page 136 STAT. 1945]]
``(2) <<NOTE: Requirements. Regulations. Guidelines. Deadline.>>
is conducted and prepared by a home energy auditor that meets
the certification or other requirements specified by the
Secretary in regulations or other guidance (as prescribed by the
Secretary not later than 365 days after the date of the
enactment of this subsection).''.
(B) <<NOTE: 26 USC 1016.>> Conforming amendment.--
Section 1016(a)(33) is amended by striking ``section
25C(f)'' and inserting ``section 25C(g)''.
(4) Lack of substantiation treated as mathematical or
clerical error.--Section 6213(g)(2) is amended--
(A) in subparagraph (P), by striking ``and'' at the
end,
(B) in subparagraph (Q), by striking the period at
the end and inserting ``, and'', and
(C) by inserting after subparagraph (Q) the
following:
``(R) an omission of information or documentation
required under section 25C(b)(6)(B) (relating to home
energy audits) to be included on a return.''.
(g) Identification Number Requirement.--
(1) In general.--Section 25C, as amended by this section, is
amended by redesignating subsection (h) as subsection (i) and by
inserting after subsection (g) the following new subsection:
``(h) <<NOTE: Definitions.>> Product Identification Number
Requirement.--
``(1) <<NOTE: Effective date.>> In general.--No credit
shall be allowed under subsection (a) with respect to any item
of specified property placed in service after December 31, 2024,
unless--
``(A) such item is produced by a qualified
manufacturer, and
``(B) the taxpayer includes the qualified product
identification number of such item on the return of tax
for the taxable year.
``(2) Qualified product identification number.--For purposes
of this section, the term `qualified product identification
number' means, with respect to any item of specified property,
the product identification number assigned to such item by the
qualified manufacturer pursuant to the methodology referred to
in paragraph (3).
``(3) Qualified manufacturer.--For purposes of this section,
the term `qualified manufacturer' means any manufacturer of
specified property which enters into an agreement with the
Secretary which provides that such manufacturer will--
``(A) assign a product identification number to each
item of specified property produced by such manufacturer
utilizing a methodology that will ensure that such
number (including any alphanumeric) is unique to each
such item (by utilizing numbers or letters which are
unique to such manufacturer or by such other method as
the Secretary may provide),
``(B) label such item with such number in such
manner as the Secretary may provide, and
``(C) <<NOTE: Reports.>> make periodic written
reports to the Secretary (at such times and in such
manner as the Secretary may provide) of the product
identification numbers so assigned and including such
information as the Secretary may require with respect to
the item of specified property to which such number was
so assigned.
[[Page 136 STAT. 1946]]
``(4) Specified property.--For purposes of this subsection,
the term `specified property' means any qualified energy
property and any property described in subparagraph (B) or (C)
of subsection (c)(3).''.
(2) Omission of correct product identification number
treated as mathematical or clerical error.--Section 6213(g)(2),
as amended by the preceding provisions of this Act,
is <<NOTE: 26 USC 6213.>> amended--
(A) in subparagraph (Q), by striking ``and'' at the
end,
(B) in subparagraph (R), by striking the period at
the end and inserting ``, and'', and
(C) by inserting after subparagraph (R) the
following:
``(S) an omission of a correct product
identification number required under section 25C(h)
(relating to credit for nonbusiness energy property) to
be included on a return.''.
(h) Energy Efficient Home Improvement Credit.--
(1) In general.--The heading for section 25C is amended by
striking ``nonbusiness energy property'' and inserting ``energy
efficient home improvement credit''.
(2) Clerical amendment.--The table of sections for subpart A
of part IV of subchapter A of chapter 1 <<NOTE: 26 USC 21
prec.>> is amended by striking the item relating to section 25C
and inserting after the item relating to section 25B the
following item:
``Sec. 25C. Energy efficient home improvement credit.''.
(i) <<NOTE: Applicability. 26 USC 25C note.>> Effective Dates.--
(1) In general.--Except as otherwise provided by this
subsection, the amendments made by this section shall apply to
property placed in service after December 31, 2022.
(2) Extension of credit.--The amendments made by subsection
(a) shall apply to property placed in service after December 31,
2021.
(3) Identification number requirement.--The amendments made
by subsection (g) shall apply to property placed in service
after December 31, 2024.
SEC. 13302. RESIDENTIAL CLEAN ENERGY CREDIT.
(a) Extension of Credit.--
(1) In general.--Section 25D(h) is amended by striking
``December 31, 2023'' and inserting ``December 31, 2034''.
(2) Application of phaseout.--Section 25D(g) is amended--
(A) in paragraph (2), by striking ``before January
1, 2023, 26 percent, and'' and inserting ``before
January 1, 2022, 26 percent,'', and
(B) by striking paragraph (3) and by inserting after
paragraph (2) the following new paragraphs:
``(3) in the case of property placed in service after
December 31, 2021, and before January 1, 2033, 30 percent,
``(4) in the case of property placed in service after
December 31, 2032, and before January 1, 2034, 26 percent, and
``(5) in the case of property placed in service after
December 31, 2033, and before January 1, 2035, 22 percent.''.
(b) Residential Clean Energy Credit for Battery Storage Technology;
Certain Expenditures Disallowed.--
(1) Allowance of credit.--Paragraph (6) of section 25D(a) is
amended to read as follows:
[[Page 136 STAT. 1947]]
``(6) the qualified battery storage technology
expenditures,''.
(2) Definition of qualified battery storage technology
expenditure.--Paragraph (6) of section 25D(d) <<NOTE: 26 USC
25D.>> is amended to read as follows:
``(6) Qualified battery storage technology expenditure.--The
term <<NOTE: Definition.>> `qualified battery storage
technology expenditure' means an expenditure for battery storage
technology which--
``(A) is installed in connection with a dwelling
unit located in the United States and used as a
residence by the taxpayer, and
``(B) has a capacity of not less than 3 kilowatt
hours.''.
(c) Conforming Amendments.--
(1) Section 25D(d)(3) is amended by inserting ``, without
regard to subparagraph (D) thereof'' after ``section 48(c)(1)''.
(2) The heading for section 25D is amended by striking
``energy efficient property'' and inserting ``clean energy
credit''.
(3) The table of sections for subpart A of part IV of
subchapter A of chapter 1 <<NOTE: 26 USC 21 prec.>> is amended
by striking the item relating to section 25D and inserting the
following:
``Sec. 25D. Residential clean energy credit.''.
(d) <<NOTE: Applicability. 26 USC 25D note.>> Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to expenditures made
after December 31, 2021.
(2) Residential clean energy credit for battery storage
technology; certain expenditures disallowed.--The amendments
made by subsection (b) shall apply to expenditures made after
December 31, 2022.
SEC. 13303. ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.
(a) In General.--
(1) Maximum amount of deduction.--Subsection (b) of section
179D is amended to read as follows:
``(b) Maximum Amount of Deduction.--
``(1) In general.--The deduction under subsection (a) with
respect to any building for any taxable year shall not exceed
the excess (if any) of--
``(A) the product of--
``(i) the applicable dollar value, and
``(ii) the square footage of the building,
over
``(B) <<NOTE: Time periods.>> the aggregate amount
of the deductions under subsections (a) and (f) with
respect to the building for the 3 taxable years
immediately preceding such taxable year (or, in the case
of any such deduction allowable to a person other than
the taxpayer, for any taxable year ending during the 4-
taxable-year period ending with such taxable year).
``(2) Applicable dollar value.--For purposes of paragraph
(1)(A)(i), the applicable dollar value shall be an amount equal
to $0.50 increased (but not above $1.00) by $0.02 for each
percentage point by which the total annual energy and power
costs for the building are certified to be reduced by a
percentage greater than 25 percent.
``(3) Increased deduction amount for certain property.--
[[Page 136 STAT. 1948]]
``(A) <<NOTE: Applicability.>> In general.--In the
case of any property which satisfies the requirements of
subparagraph (B), paragraph (2) shall be applied by
substituting `$2.50' for `$0.50', `$.10' for `$.02', and
`$5.00' for `$1.00'.
``(B) Property requirements.--In the case of any
energy efficient commercial building property, energy
efficient building retrofit property, or property
installed pursuant to a qualified retrofit plan, such
property shall meet the requirements of this
subparagraph if --
``(i) <<NOTE: Time
period. Publication. Guidelines.>> installation
of such property begins prior to the date that is
60 days after the Secretary publishes guidance
with respect to the requirements of paragraphs
(4)(A) and (5), or
``(ii) installation of such property satisfies
the requirements of paragraphs (4)(A) and (5).
``(4) Prevailing wage requirements.--
``(A) <<NOTE: Determination.>> In general.--The
requirements described in this subparagraph with respect
to any property are that the taxpayer shall ensure that
any laborers and mechanics employed by the taxpayer or
any contractor or subcontractor in the installation of
any property shall be paid wages at rates not less than
the prevailing rates for construction, alteration, or
repair of a similar character in the locality in which
such property is located as most recently determined by
the Secretary of Labor, in accordance with subchapter IV
of chapter 31 of title 40, United States Code.
``(B) <<NOTE: Applicability.>> Correction and
penalty related to failure to satisfy wage
requirements.--Rules similar to the rules of section
45(b)(7)(B) shall apply.
``(5) <<NOTE: Applicability.>> Apprenticeship
requirements.--Rules similar to the rules of section 45(b)(8)
shall apply.
``(6) <<NOTE: Guidelines. Determination. Requirements. Records.>>
Regulations.--The Secretary shall issue such regulations or
other guidance as the Secretary determines necessary to carry
out the purposes of this subsection, including regulations or
other guidance which provides for requirements for recordkeeping
or information reporting for purposes of administering the
requirements of this subsection.''.
(2) Modification of efficiency standard.--Section
179D(c)(1)(D) is <<NOTE: 26 USC 179D.>> amended by striking
``50 percent'' and inserting ``25 percent''.
(3) Reference standard.--Section 179D(c)(2) is amended by
striking ``the most recent'' and inserting the following: ``the
more recent of--
``(A) Standard 90.1-2007 published by the American
Society of Heating, Refrigerating, and Air Conditioning
Engineers and the Illuminating Engineering Society of
North America, or
``(B) the most recent''.
(4) Final determination; extension of period; placed in
service deadline.--Subparagraph (B) of section 179D(c)(2), as
amended by paragraph (3), is amended--
(A) by inserting ``for which the Department of
Energy has issued a final determination and'' before
``which has been affirmed'',
(B) by striking ``2 years'' and inserting ``4
years'', and
[[Page 136 STAT. 1949]]
(C) by striking ``that construction of such property
begins'' and inserting ``such property is placed in
service''.
(5) Elimination of partial allowance.--
(A) <<NOTE: 26 USC 179D.>> In general.--Section
179D(d) is amended--
(i) by striking paragraph (1), and
(ii) by redesignating paragraphs (2) through
(6) as paragraphs (1) through (5), respectively.
(B) Conforming amendments.--
(i) Section 179D(c)(1)(D) is amended--
(I) by striking ``subsection
(d)(6)'' and inserting ``subsection
(d)(5)'', and
(II) by striking ``subsection
(d)(2)'' and inserting ``subsection
(d)(1)''.
(ii) Paragraph (2)(A) of section 179D(d), as
redesignated by subparagraph (A), is amended by
striking ``paragraph (2)'' and inserting
``paragraph (1)''.
(iii) Paragraph (4) of section 179D(d), as
redesignated by subparagraph (A), is amended by
striking ``paragraph (3)(B)(iii)'' and inserting
``paragraph (2)(B)(iii)''.
(iv) Section 179D is amended by striking
subsection (f).
(v) Section 179D(h) is amended by striking
``or (d)(1)(A)''.
(6) Allocation of deduction by certain tax-exempt
entities.--Paragraph (3) of section 179D(d), as redesignated by
paragraph (5)(A), is amended to read as follows:
``(3) Allocation of deduction by certain tax-exempt
entities.--
``(A) <<NOTE: Regulations. Guidelines.>> In
general.--In the case of energy efficient commercial
building property installed on or in property owned by a
specified tax-exempt entity, the Secretary shall
promulgate regulations or guidance to allow the
allocation of the deduction to the person primarily
responsible for designing the property in lieu of the
owner of such property. Such person shall be treated as
the taxpayer for purposes of this section.
``(B) <<NOTE: Definition.>> Specified tax-exempt
entity.--For purposes of this paragraph, the term
`specified tax-exempt entity' means--
``(i) the United States, any State or
political subdivision thereof, any possession of
the United States, or any agency or
instrumentality of any of the foregoing,
``(ii) an Indian tribal government (as defined
in section 30D(g)(9)) or Alaska Native Corporation
(as defined in section 3 of the Alaska Native
Claims Settlement Act (43 U.S.C. 1602(m)), and
``(iii) any organization exempt from tax
imposed by this chapter.''.
(7) Alternative deduction for energy efficient building
retrofit property.--Section 179D, as amended by the preceding
provisions of this section, is amended by inserting after
subsection (e) the following new subsection:
``(f) <<NOTE: Definitions.>> Alternative Deduction for Energy
Efficient Building Retrofit Property.--
[[Page 136 STAT. 1950]]
``(1) <<NOTE: Determinations.>> In general.--In the case of
a taxpayer which elects (at such time and in such manner as the
Secretary may provide) the application of this subsection with
respect to any qualified building, there shall be allowed as a
deduction for the taxable year which includes the date of the
qualifying final certification with respect to the qualified
retrofit plan of such building, an amount equal to the lesser
of--
``(A) the excess described in subsection (b)
(determined by substituting `energy use intensity' for
`total annual energy and power costs' in paragraph (2)
thereof), or
``(B) the aggregate adjusted basis (determined after
taking into account all adjustments with respect to such
taxable year other than the reduction under subsection
(e)) of energy efficient building retrofit property
placed in service by the taxpayer pursuant to such
qualified retrofit plan.
``(2) <<NOTE: Certifications.>> Qualified retrofit plan.--
For purposes of this subsection, the term `qualified retrofit
plan' means a written plan prepared by a qualified professional
which specifies modifications to a building which, in the
aggregate, are expected to reduce such building's energy use
intensity by 25 percent or more in comparison to the baseline
energy use intensity of such building. Such plan shall provide
for a qualified professional to--
``(A) <<NOTE: Time period.>> as of any date during
the 1-year period ending on the date on which the
property installed pursuant to such plan is placed in
service, certify the energy use intensity of such
building as of such date,
``(B) certify the status of property installed
pursuant to such plan as meeting the requirements of
subparagraphs (B) and (C) of paragraph (3), and
``(C) as of any date that is more than 1 year after
the date on which the property installed pursuant to
such plan is placed in service, certify the energy use
intensity of such building as of such date.
``(3) Energy efficient building retrofit property.--For
purposes of this subsection, the term `energy efficient building
retrofit property' means property--
``(A) with respect to which depreciation (or
amortization in lieu of depreciation) is allowable,
``(B) which is installed on or in any qualified
building,
``(C) which is installed as part of--
``(i) the interior lighting systems,
``(ii) the heating, cooling, ventilation, and
hot water systems, or
``(iii) the building envelope, and
``(D) <<NOTE: Certification.>> which is certified
in accordance with paragraph (2)(B) as meeting the
requirements of subparagraphs (B) and (C).
``(4) Qualified building.--For purposes of this subsection,
the term `qualified building' means any building which--
``(A) is located in the United States, and
``(B) <<NOTE: Time period.>> was originally placed
in service not less than 5 years before the
establishment of the qualified retrofit plan with
respect to such building.
``(5) Qualifying final certification.--For purposes of this
subsection, the term `qualifying final certification' means,
[[Page 136 STAT. 1951]]
with respect to any qualified retrofit plan, the certification
described in paragraph (2)(C) if the energy use intensity
certified in such certification is not more than 75 percent of
the baseline energy use intensity of the building.
``(6) Baseline energy use intensity.--
``(A) In general.--For purposes of this subsection,
the term `baseline energy use intensity' means the
energy use intensity certified under paragraph (2)(A),
as adjusted to take into account weather.
``(B) Determination of adjustment.--For purposes of
subparagraph (A), the adjustments described in such
subparagraph shall be determined in such manner as the
Secretary may provide.
``(7) Other definitions.--For purposes of this subsection--
``(A) <<NOTE: Determination.>> Energy use
intensity.--The term `energy use intensity' means the
annualized, measured site energy use intensity
determined in accordance with such regulations or other
guidance as the Secretary may provide and measured in
British thermal units.
``(B) Qualified professional.--The term `qualified
professional' means an individual who is a licensed
architect or a licensed engineer and meets such other
requirements as the Secretary may provide.
``(8) Coordination with deduction otherwise allowed under
subsection (a).--
``(A) In general.--In the case of any building with
respect to which an election is made under paragraph
(1), the term `energy efficient commercial building
property' shall not include any energy efficient
building retrofit property with respect to which a
deduction is allowable under this subsection.
``(B) Certain rules not applicable.--
``(i) In general.--Except as provided in
clause (ii), subsection (d) shall not apply for
purposes of this subsection.
``(ii) Allocation of deduction by certain tax-
exempt entities.--Rules
similar <<NOTE: Applicability.>> to subsection
(d)(3) shall apply for purposes of this
subsection.''.
(8) <<NOTE: 26 USC 179D.>> Inflation adjustment.--Section
179D(g) is amended--
(A) by striking ``2020'' and inserting ``2022'',
(B) by striking ``or subsection (d)(1)(A)'', and
(C) by striking ``2019'' and inserting ``2021''.
(b) Application to Real Estate Investment Trust Earnings and
Profits.--Section 312(k)(3)(B) is amended--
(1) by striking ``For purposes of computing the earnings and
profits of a corporation'' and inserting the following:
``(i) In general.--For purposes of computing
the earnings and profits of a corporation, except
as provided in clause (ii)'', and
(2) by adding at the end the following new clause:
``(ii) Special rule.--In the case of a
corporation that is a real estate investment
trust, any amount deductible under section 179D
shall be allowed in the year in which the property
giving rise to such deduction is placed in service
(or, in the case of energy efficient building
retrofit property, the year in which the
qualifying final certification is made).''.
[[Page 136 STAT. 1952]]
(c) <<NOTE: Deadlines.>> Conforming Amendment.--Paragraph (1) of
section 179D(d), as redesignated by subsection (a)(5)(A), <<NOTE: 26 USC
179D.>> is amended by striking ``not later than the date that is 2
years before the date that construction of such property begins'' and
inserting ``not later than the date that is 4 years before the date such
property is placed in service''.
(d) <<NOTE: Applicability. 26 USC 179D note.>> Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
taxable years beginning after December 31, 2022.
(2) Alternative deduction for energy efficient building
retrofit property.--Subsection (f) of section 179D of the
Internal Revenue Code of 1986 (as amended by this section), and
any other provision of such section solely for purposes of
applying such subsection, shall apply to property placed in
service after December 31, 2022 (in taxable years ending after
such date) if such property is placed in service pursuant to
qualified retrofit plan (within the meaning of such section)
established after such date.
SEC. 13304. EXTENSION, INCREASE, AND MODIFICATIONS OF NEW ENERGY
EFFICIENT HOME CREDIT.
(a) Extension of Credit.--Section 45L(g) is amended by striking
``December 31, 2021'' and inserting ``December 31, 2032''.
(b) Increase in Credit Amounts.--Paragraph (2) of section 45L(a) is
amended to read as follows:
``(2) <<NOTE: Requirements.>> Applicable amount.--For
purposes of paragraph (1), the applicable amount is an amount
equal to--
``(A) in the case of a dwelling unit which is
eligible to participate in the Energy Star Residential
New Construction Program or the Energy Star Manufactured
New Homes program--
``(i) which meets the requirements of
subsection (c)(1)(A) (and which does not meet the
requirements of subsection (c)(1)(B)), $2,500, and
``(ii) which meets the requirements of
subsection (c)(1)(B), $5,000, and
``(B) in the case of a dwelling unit which is part
of a building eligible to participate in the Energy Star
Multifamily New Construction Program--
``(i) which meets the requirements of
subsection (c)(1)(A) (and which does not meet the
requirements of subsection (c)(1)(B)), $500, and
``(ii) which meets the requirements of
subsection (c)(1)(B), $1,000.''.
(c) Modification of Energy Saving Requirements.--Section 45L(c) is
amended to read as follows:
``(c) <<NOTE: Effective dates. Time periods.>> Energy Saving
Requirements.--
``(1) In general.--
``(A) In general.--A dwelling unit meets the
requirements of this subparagraph if such dwelling unit
meets the requirements of paragraph (2) or (3)
(whichever is applicable).
``(B) <<NOTE: Certification.>> Zero energy ready
home program.--A dwelling unit meets the requirements of
this subparagraph if such dwelling unit is certified as
a zero energy ready home
[[Page 136 STAT. 1953]]
under the zero energy ready home program of the
Department of Energy as in effect on January 1, 2023 (or
any successor program determined by the Secretary).
``(2) Single-family home requirements.--A dwelling unit
meets the requirements of this paragraph if--
``(A) such dwelling unit meets--
``(i)(I) in the case of a dwelling unit
acquired before January 1, 2025, the Energy Star
Single-Family New Homes National Program
Requirements 3.1, or
``(II) in the case of a dwelling unit acquired
after December 31, 2024, the Energy Star Single-
Family New Homes National Program Requirements
3.2, and
``(ii) the most recent Energy Star Single-
Family New Homes Program Requirements applicable
to the location of such dwelling unit (as in
effect on the latter of January 1, 2023, or
January 1 of two calendar years prior to the date
the dwelling unit was acquired), or
``(B) such dwelling unit meets the most recent
Energy Star Manufactured Home National program
requirements as in effect on the latter of January 1,
2023, or January 1 of two calendar years prior to the
date such dwelling unit is acquired.
``(3) Multi-family home requirements.--A dwelling unit meets
the requirements of this paragraph if--
``(A) such dwelling unit meets the most recent
Energy Star Multifamily New Construction National
Program Requirements (as in effect on either January 1,
2023, or January 1 of three calendar years prior to the
date the dwelling was acquired, whichever is later), and
``(B) such dwelling unit meets the most recent
Energy Star Multifamily New Construction Regional
Program Requirements applicable to the location of such
dwelling unit (as in effect on either January 1, 2023,
or January 1 of three calendar years prior to the date
the dwelling was acquired, whichever is later).''.
(d) <<NOTE: 26 USC 45L.>> Prevailing Wage Requirement.--Section 45L
is amended by redesignating subsection (g) as subsection (h) and by
inserting after subsection (f) the following new subsection:
``(g) Prevailing Wage Requirement.--
``(1) In general.--In the case of a qualifying residence
described in subsection (a)(2)(B) meeting the prevailing wage
requirements of paragraph (2)(A), the credit amount allowed with
respect to such residence shall be--
``(A) $2,500 in the case of a residence which meets
the requirements of subparagraph (A) of subsection
(c)(1) (and which does not meet the requirements of
subparagraph (B) of such subsection), and
``(B) $5,000 in the case of a residence which meets
the requirements of subsection (c)(1)(B).
``(2) Prevailing wage requirements.--
``(A) <<NOTE: Determination.>> In general.--The
requirements described in this subparagraph with respect
to any qualified residence are that the taxpayer shall
ensure that any laborers and mechanics employed by the
taxpayer or any contractor or subcontractor in the
construction of such residence shall be paid wages at
rates not less than the prevailing rates
[[Page 136 STAT. 1954]]
for construction, alteration, or repair of a similar
character in the locality in which such residence is
located as most recently determined by the Secretary of
Labor, in accordance with subchapter IV of chapter 31 of
title 40, United States Code.
``(B) <<NOTE: Applicability.>> Correction and
penalty related to failure to satisfy wage
requirements.--Rules similar to the rules of section
45(b)(7)(B) shall apply.
``(3) <<NOTE: Determination. Requirements. Records.>>
Regulations and guidance.--The Secretary shall issue such
regulations or other guidance as the Secretary determines
necessary to carry out the purposes of this subsection,
including regulations or other guidance which provides for
requirements for recordkeeping or information reporting for
purposes of administering the requirements of this
subsection.''.
(e) <<NOTE: 26 USC 45L.>> Basis Adjustment.--Section 45L(e) is
amended by inserting after the first sentence the following: ``This
subsection shall not apply for purposes of determining the adjusted
basis of any building under section 42.''.
(f) <<NOTE: Applicability. 26 USC 45L note.>> Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to dwelling units
acquired after December 31, 2022.
(2) Extension of credit.--The amendments made by subsection
(a) shall apply to dwelling units acquired after December 31,
2021.
PART 4--CLEAN VEHICLES
SEC. 13401. CLEAN VEHICLE CREDIT.
(a) <<NOTE: Determinations.>> Per Vehicle Dollar Limitation.--
Section 30D(b) is amended by striking paragraphs (2) and (3) and
inserting the following:
``(2) Critical minerals.--In the case of a vehicle with
respect to which the requirement described in subsection
(e)(1)(A) is satisfied, the amount determined under this
paragraph is $3,750.
``(3) Battery components.--In the case of a vehicle with
respect to which the requirement described in subsection
(e)(2)(A) is satisfied, the amount determined under this
paragraph is $3,750.''.
(b) Final Assembly.--Section 30D(d) is amended--
(1) in paragraph (1)--
(A) in subparagraph (E), by striking ``and'' at the
end,
(B) in subparagraph (F)(ii), by striking the period
at the end and inserting ``, and'', and
(C) by adding at the end the following:
``(G) the final assembly of which occurs within
North America.'',
(2) by adding at the end the following:
``(5) <<NOTE: Definition.>> Final assembly.--For purposes
of paragraph (1)(G), the term `final assembly' means the process
by which a manufacturer produces a new clean vehicle at, or
through the use of, a plant, factory, or other place from which
the vehicle is delivered to a dealer or importer with all
component parts necessary for the mechanical operation of the
vehicle included with the vehicle, whether or not the component
parts are permanently installed in or on the vehicle.''.
[[Page 136 STAT. 1955]]
(c) Definition of New Clean Vehicle.--
(1) In general.--Section 30D(d), as amended by the preceding
provisions of this section, is amended-- <<NOTE: 26 USC 30D.>>
(A) in the heading, by striking ``Qualified Plug-in
Electric Drive Motor'' and inserting ``Clean'',
(B) in paragraph (1)--
(i) in the matter preceding subparagraph (A),
by striking ``qualified plug-in electric drive
motor'' and inserting ``clean'',
(ii) in subparagraph (C), by inserting
``qualified'' before ``manufacturer'',
(iii) in subparagraph (F)--
(I) in clause (i), by striking ``4''
and inserting ``7'', and
(II) in clause (ii), by striking
``and'' at the end,
(iv) in subparagraph (G), by striking the
period at the end and inserting ``, and'', and
(v) by adding at the end the following:
``(H) for which the person who sells any vehicle to
the taxpayer furnishes a report to the taxpayer and to
the Secretary, at such time and in such manner as the
Secretary shall provide, containing--
``(i) the name and taxpayer identification
number of the taxpayer,
``(ii) the vehicle identification number of
the vehicle, unless, in accordance with any
applicable rules promulgated by the Secretary of
Transportation, the vehicle is not assigned such a
number,
``(iii) the battery capacity of the vehicle,
``(iv) verification that original use of the
vehicle commences with the taxpayer, and
``(v) the maximum credit under this section
allowable to the taxpayer with respect to the
vehicle.'',
(C) in paragraph (3)--
(i) in the heading, by striking
``Manufacturer'' and inserting ``Qualified
manufacturer'',
(ii) by striking ``The term `manufacturer' has
the meaning given such term in'' and inserting
``The term `qualified manufacturer' means any
manufacturer (within the meaning of the'', and
(iii) by inserting ``) which enters into a
written agreement with the Secretary under which
such manufacturer agrees to make periodic written
reports to the Secretary (at such times and in
such manner as the Secretary may provide)
providing vehicle identification numbers and such
other information related to each vehicle
manufactured by such manufacturer as the Secretary
may require'' before the period at the end, and
(D) by adding at the end the following:
``(6) New qualified fuel cell motor vehicle.--For purposes
of this section, the term `new clean vehicle' shall include any
new qualified fuel cell motor vehicle (as defined in section
30B(b)(3)) which meets the requirements under subparagraphs (G)
and (H) of paragraph (1).''.
(2) Conforming amendments.--Section 30D is amended--
[[Page 136 STAT. 1956]]
(A) in subsection (a), by striking ``new qualified
plug-in electric drive motor vehicle'' and inserting
``new clean vehicle'', and
(B) in subsection (b)(1), by striking ``new
qualified plug-in electric drive motor vehicle'' and
inserting ``new clean vehicle''.
(d) Elimination of Limitation on Number of Vehicles Eligible for
Credit.--Section <<NOTE: 26 USC 30D.>> 30D is amended by striking
subsection (e).
(e) Critical Mineral and Battery Component Requirements.--
(1) In general.--Section 30D, as amended by the preceding
provisions of this section, is amended by inserting after
subsection (d) the following:
``(e) <<NOTE: Effective dates. Time periods.>> Critical Mineral and
Battery Component Requirements.--
``(1) Critical minerals requirement.--
``(A) In general.--The requirement described in this
subparagraph with respect to a vehicle is that, with
respect to the battery from which the electric motor of
such vehicle draws electricity, the percentage of the
value of the applicable critical minerals (as defined in
section 45X(c)(6)) contained in such battery that were--
``(i) extracted or processed--
``(I) in the United States, or
``(II) in any country with which the
United States has a free trade agreement
in effect, or
``(ii) recycled in North America,
is equal to or greater than the applicable percentage
(as certified by the qualified manufacturer, in such
form or manner as prescribed by the Secretary).
``(B) Applicable percentage.--For purposes of
subparagraph (A), the applicable percentage shall be--
``(i) in the case of a vehicle placed in
service after the date on which the proposed
guidance described in paragraph (3)(B) is issued
by the Secretary and before January 1, 2024, 40
percent,
``(ii) in the case of a vehicle placed in
service during calendar year 2024, 50 percent,
``(iii) in the case of a vehicle placed in
service during calendar year 2025, 60 percent,
``(iv) in the case of a vehicle placed in
service during calendar year 2026, 70 percent, and
``(v) in the case of a vehicle placed in
service after December 31, 2026, 80 percent.
``(2) Battery components.--
``(A) In general.--The requirement described in this
subparagraph with respect to a vehicle is that, with
respect to the battery from which the electric motor of
such vehicle draws electricity, the percentage of the
value of the components contained in such battery that
were manufactured or assembled in North America is equal
to or greater than the applicable percentage (as
certified by the qualified manufacturer, in such form or
manner as prescribed by the Secretary).
``(B) Applicable percentage.--For purposes of
subparagraph (A), the applicable percentage shall be--
[[Page 136 STAT. 1957]]
``(i) in the case of a vehicle placed in
service after the date on which the proposed
guidance described in paragraph (3)(B) is issued
by the Secretary and before January 1, 2024, 50
percent,
``(ii) in the case of a vehicle placed in
service during calendar year 2024 or 2025, 60
percent,
``(iii) in the case of a vehicle placed in
service during calendar year 2026, 70 percent,
``(iv) in the case of a vehicle placed in
service during calendar year 2027, 80 percent,
``(v) in the case of a vehicle placed in
service during calendar year 2028, 90 percent,
``(vi) in the case of a vehicle placed in
service after December 31, 2028, 100 percent.
``(3) Regulations and guidance.--
``(A) <<NOTE: Determination.>> In general.--The
Secretary shall issue such regulations or other guidance
as the Secretary determines necessary to carry out the
purposes of this subsection, including regulations or
other guidance which provides for requirements for
recordkeeping or information reporting for purposes of
administering the requirements of this subsection.
``(B) Deadline for proposed guidance.--Not later
than December 31, 2022, the Secretary shall issue
proposed guidance with respect to the requirements under
this subsection.''.
(2) Excluded entities.--Section 30D(d), as amended by the
preceding provisions of this section, <<NOTE: 26 USC 30D.>> is
amended by adding at the end the following:
``(7) <<NOTE: Effective dates.>> Excluded entities.--For
purposes of this section, the term `new clean vehicle' shall not
include--
``(A) any vehicle placed in service after December
31, 2024, with respect to which any of the applicable
critical minerals contained in the battery of such
vehicle (as described in subsection (e)(1)(A)) were
extracted, processed, or recycled by a foreign entity of
concern (as defined in section 40207(a)(5) of the
Infrastructure Investment and Jobs Act (42 U.S.C.
18741(a)(5))), or
``(B) any vehicle placed in service after December
31, 2023, with respect to which any of the components
contained in the battery of such vehicle (as described
in subsection (e)(2)(A)) were manufactured or assembled
by a foreign entity of concern (as so defined).''.
(f) Special Rules.--Section 30D(f) is amended by adding at the end
the following:
``(8) One credit per vehicle.--In the case of any vehicle,
the credit described in subsection (a) shall only be allowed
once with respect to such vehicle, as determined based upon the
vehicle identification number of such vehicle.
``(9) VIN requirement.--No credit shall be allowed under
this section with respect to any vehicle unless the taxpayer
includes the vehicle identification number of such vehicle on
the return of tax for the taxable year.
``(10) Limitation based on modified adjusted gross income.--
``(A) In general.--No credit shall be allowed under
subsection (a) for any taxable year if--
[[Page 136 STAT. 1958]]
``(i) the lesser of--
``(I) the modified adjusted gross
income of the taxpayer for such taxable
year, or
``(II) the modified adjusted gross
income of the taxpayer for the preceding
taxable year, exceeds
``(ii) the threshold amount.
``(B) Threshold amount.--For purposes of
subparagraph (A)(ii), the threshold amount shall be--
``(i) in the case of a joint return or a
surviving spouse (as defined in section 2(a)),
$300,000,
``(ii) in the case of a head of household (as
defined in section 2(b)), $225,000, and
``(iii) in the case of a taxpayer not
described in clause (i) or (ii), $150,000.
``(C) <<NOTE: Definition.>> Modified adjusted gross
income.--For purposes of this paragraph, the term
`modified adjusted gross income' means adjusted gross
income increased by any amount excluded from gross
income under section 911, 931, or 933.
``(11) Manufacturer's suggested retail price limitation.--
``(A) In general.--No credit shall be allowed under
subsection (a) for a vehicle with a manufacturer's
suggested retail price in excess of the applicable
limitation.
``(B) Applicable limitation.--For purposes of
subparagraph (A), the applicable limitation for each
vehicle classification is as follows:
``(i) Vans.--In the case of a van, $80,000.
``(ii) Sport utility vehicles.--In the case of
a sport utility vehicle, $80,000.
``(iii) Pickup trucks.--In the case of a
pickup truck, $80,000.
``(iv) Other.--In the case of any other
vehicle, $55,000.
``(C) <<NOTE: Determination.>> Regulations and
guidance.--For purposes of this paragraph, the Secretary
shall prescribe such regulations or other guidance as
the Secretary determines necessary for determining
vehicle classifications using criteria similar to that
employed by the Environmental Protection Agency and the
Department of the Energy to determine size and class of
vehicles.''.
(g) Transfer of Credit.--
(1) In general.--Section 30D <<NOTE: 26 USC 30D.>> is
amended by striking subsection (g) and inserting the following:
``(g) Transfer of Credit.--
``(1) <<NOTE: Determination.>> In general.--Subject to such
regulations or other guidance as the Secretary determines
necessary, if the taxpayer who acquires a new clean vehicle
elects the application of this subsection with respect to such
vehicle, the credit which would (but for this subsection) be
allowed to such taxpayer with respect to such vehicle shall be
allowed to the eligible entity specified in such election (and
not to such taxpayer).
``(2) <<NOTE: Definition.>> Eligible entity.--For purposes
of this subsection, the term `eligible entity' means, with
respect to the vehicle for which the credit is allowed under
subsection (a), the dealer which sold such vehicle to the
taxpayer and has--
[[Page 136 STAT. 1959]]
``(A) subject to paragraph (4), registered with the
Secretary for purposes of this paragraph, at such time,
and in such form and manner, as the Secretary may
prescribe,
``(B) prior to the election described in paragraph
(1) and not later than at the time of such sale,
disclosed to the taxpayer purchasing such vehicle--
``(i) the manufacturer's suggested retail
price,
``(ii) the value of the credit allowed and any
other incentive available for the purchase of such
vehicle, and
``(iii) the amount provided by the dealer to
such taxpayer as a condition of the election
described in paragraph (1),
``(C) <<NOTE: Deadline.>> not later than at the
time of such sale, made payment to such taxpayer
(whether in cash or in the form of a partial payment or
down payment for the purchase of such vehicle) in an
amount equal to the credit otherwise allowable to such
taxpayer, and
``(D) with respect to any incentive otherwise
available for the purchase of a vehicle for which a
credit is allowed under this section, including any
incentive in the form of a rebate or discount provided
by the dealer or manufacturer, ensured that--
``(i) the availability or use of such
incentive shall not limit the ability of a
taxpayer to make an election described in
paragraph (1), and
``(ii) such election shall not limit the value
or use of such incentive.
``(3) Timing.--An election described in paragraph (1) shall
be made by the taxpayer not later than the date on which the
vehicle for which the credit is allowed under subsection (a) is
purchased.
``(4) <<NOTE: Determination.>> Revocation of
registration.--Upon determination by the Secretary that a dealer
has failed to comply with the requirements described in
paragraph (2), the Secretary may revoke the registration (as
described in subparagraph (A) of such paragraph) of such dealer.
``(5) Tax treatment of payments.--With respect to any
payment described in paragraph (2)(C), such payment--
``(A) shall not be includible in the gross income of
the taxpayer, and
``(B) with respect to the dealer, shall not be
deductible under this title.
``(6) Application of certain other requirements.--In the
case of any election under paragraph (1) with respect to any
vehicle--
``(A) the requirements of paragraphs (1) and (2) of
subsection (f) shall apply to the taxpayer who acquired
the vehicle in the same manner as if the credit
determined under this section with respect to such
vehicle were allowed to such taxpayer,
``(B) paragraph (6) of such subsection shall not
apply, and
``(C) the requirement of paragraph (9) of such
subsection (f) shall be treated as satisfied if the
eligible entity provides the vehicle identification
number of such vehicle
[[Page 136 STAT. 1960]]
to the Secretary in such manner as the Secretary may
provide.
``(7) Advance payment to registered dealers.--
``(A) In general.--The Secretary shall establish a
program to make advance payments to any eligible entity
in an amount equal to the cumulative amount of the
credits allowed under subsection (a) with respect to any
vehicles sold by such entity for which an election
described in paragraph (1) has been made.
``(B) <<NOTE: Applicability.>> Excessive payments.--
Rules similar to the rules of section 6417(d)(6) shall
apply for purposes of this paragraph.
``(C) Treatment of advance payments.--For purposes
of section 1324 of title 31, United States Code, the
payments under subparagraph (A) shall be treated in the
same manner as a refund due from a credit provision
referred to in subsection (b)(2) of such section.
``(8) <<NOTE: Definition.>> Dealer.--For purposes of this
subsection, the term `dealer' means a person licensed by a
State, the District of Columbia, the Commonwealth of Puerto
Rico, any other territory or possession of the United States, an
Indian tribal government, or any Alaska Native Corporation (as
defined in section 3 of the Alaska Native Claims Settlement Act
(43 U.S.C. 1602(m)) to engage in the sale of vehicles.
``(9) <<NOTE: Definition.>> Indian tribal government.--For
purposes of this subsection, the term `Indian tribal government'
means the recognized governing body of any Indian or Alaska
Native tribe, band, nation, pueblo, village, community,
component band, or component reservation, individually
identified (including parenthetically) in the list published
most recently as of the date of enactment of this subsection
pursuant to section 104 of the Federally Recognized Indian Tribe
List Act of 1994 (25 U.S.C. 5131).
``(10) Recapture.--In the case of any taxpayer who has made
an election described in paragraph (1) with respect to a new
clean vehicle and received a payment described in paragraph
(2)(C) from an eligible entity, if the credit under subsection
(a) would otherwise (but for this subsection) not be allowable
to such taxpayer pursuant to the application of subsection
(f)(10), the tax imposed on such taxpayer under this chapter for
the taxable year in which such vehicle was placed in service
shall be increased by the amount of the payment received by such
taxpayer.''.
(2) Conforming amendments.--Section 30D, as amended by the
preceding provisions of this section, <<NOTE: 26 USC 30D.>> is
amended--
(A) in subsection (d)(1)(H) of such section--
(i) in clause (iv), by striking ``and'' at the
end,
(ii) in clause (v), by striking the period at
the end and inserting ``, and'', and
(iii) by adding at the end the following:
``(vi) in the case of a taxpayer who makes an
election under subsection (g)(1), any amount
described in subsection (g)(2)(C) which has been
provided to such taxpayer.'', and
(B) in subsection (f)--
(i) by striking paragraph (3), and
[[Page 136 STAT. 1961]]
(ii) in paragraph (8), by inserting ``,
including any vehicle with respect to which the
taxpayer elects the application of subsection
(g)'' before the period at the end.
(h) Termination.--Section 30D <<NOTE: 26 USC 30D.>> is amended by
adding at the end the following:
``(h) Termination.--No credit shall be allowed under this section
with respect to any vehicle placed in service after December 31,
2032.''.
(i) Additional Conforming Amendments.--
(1) The heading of section 30D is amended by striking ``new
qualified plug-in electric drive motor vehicles'' and inserting
``clean vehicle credit''.
(2) Section 30B is amended--
(A) in subsection (h)(8), by striking ``, except
that no benefit shall be recaptured if such property
ceases to be eligible for such credit by reason of
conversion to a qualified plug-in electric drive motor
vehicle'', and
(B) by striking subsection (i).
(3) Section 38(b)(30) is amended by striking ``qualified
plug-in electric drive motor'' and inserting ``clean''.
(4) Section 6213(g)(2), as amended by the preceding
provisions of this Act, is amended--
(A) in subparagraph (R), by striking ``and'' at the
end,
(B) in subparagraph (S), by striking the period at
the end and inserting ``, and'', and
(C) by inserting after subparagraph (S) the
following:
``(T) an omission of a correct vehicle
identification number required under section 30D(f)(9)
(relating to credit for new clean vehicles) to be
included on a return.''.
(5) Section 6501(m) is amended by striking ``30D(e)(4)'' and
inserting ``30D(f)(6)''.
(6) The table of sections for subpart B of part IV of
subchapter A of chapter 1 <<NOTE: 26 USC 27 prec.>> is amended
by striking the item relating to section 30D and inserting after
the item relating to section 30C the following item:
``Sec. 30D. Clean vehicle credit.''.
(j) <<NOTE: Effective dates. Time periods. 26 USC 30D note.>>
Gross-up of Direct Spending.--Beginning in fiscal year 2023 and each
fiscal year thereafter, the portion of any credit allowed to an eligible
entity (as defined in section 30D(g)(2) of the Internal Revenue Code of
1986) pursuant to an election made under section 30D(g) of the Internal
Revenue Code of 1986 that is direct spending shall be increased by
6.0445 percent.
(k) <<NOTE: Applicability. 26 USC 30D note.>> Effective Dates.--
(1) In general.--Except as provided in paragraphs (2), (3),
(4), and (5), the amendments made by this section shall apply to
vehicles placed in service after December 31, 2022.
(2) Final assembly.--The amendments made by subsection (b)
shall apply to vehicles sold after the date of enactment of this
Act.
(3) Per vehicle dollar limitation and related
requirements.--The amendments made by subsections (a) and (e)
shall apply to vehicles placed in service after the date on
which the proposed guidance described in paragraph (3)(B) of
section 30D(e) of the Internal Revenue Code of 1986 (as added by
subsection (e)) is issued by the Secretary of the Treasury (or
the Secretary's delegate).
[[Page 136 STAT. 1962]]
(4) Transfer of credit.--The amendments made by subsection
(g) shall apply to vehicles placed in service after December 31,
2023.
(5) Elimination of manufacturer limitation.--The amendment
made by subsection (d) shall apply to vehicles sold after
December 31, 2022.
(l) <<NOTE: Applicability. Effective dates. 26 USC 30D
note.>> Transition Rule.--Solely for purposes of the application of
section 30D of the Internal Revenue Code of 1986, in the case of a
taxpayer that--
(1) after December 31, 2021, and before the date of
enactment of this Act, purchased, or entered into a written
binding contract to purchase, a new qualified plug-in electric
drive motor vehicle (as defined in section 30D(d)(1) of the
Internal Revenue Code of 1986, as in effect on the day before
the date of enactment of this Act), and
(2) placed such vehicle in service on or after the date of
enactment of this Act,
such taxpayer may elect (at such time, and in such form and manner, as
the Secretary of the Treasury, or the Secretary's delegate, may
prescribe) to treat such vehicle as having been placed in service on the
day before the date of enactment of this Act.
SEC. 13402. CREDIT FOR PREVIOUSLY-OWNED CLEAN VEHICLES.
(a) In General.--Subpart A of part IV of subchapter A of chapter 1
is amended by inserting after section 25D the following new section:
``SEC. <<NOTE: 26 USC 25E.>> 25E. PREVIOUSLY-OWNED CLEAN
VEHICLES.
``(a) Allowance of Credit.--In the case of a qualified buyer who
during a taxable year places in service a previously-owned clean
vehicle, there shall be allowed as a credit against the tax imposed by
this chapter for the taxable year an amount equal to the lesser of--
``(1) $4,000, or
``(2) the amount equal to 30 percent of the sale price with
respect to such vehicle.
``(b) Limitation Based on Modified Adjusted Gross Income.--
``(1) In general.--No credit shall be allowed under
subsection (a) for any taxable year if--
``(A) the lesser of--
``(i) the modified adjusted gross income of
the taxpayer for such taxable year, or
``(ii) the modified adjusted gross income of
the taxpayer for the preceding taxable year,
exceeds
``(B) the threshold amount.
``(2) Threshold amount.--For purposes of paragraph (1)(B),
the threshold amount shall be--
``(A) in the case of a joint return or a surviving
spouse (as defined in section 2(a)), $150,000,
``(B) in the case of a head of household (as defined
in section 2(b)), $112,500, and
``(C) in the case of a taxpayer not described in
subparagraph (A) or (B), $75,000.
``(3) <<NOTE: Definition.>> Modified adjusted gross
income.--For purposes of this subsection, the term `modified
adjusted gross income' means adjusted gross income increased by
any amount excluded from gross income under section 911, 931, or
933.
[[Page 136 STAT. 1963]]
``(c) Definitions.--For purposes of this section--
``(1) Previously-owned clean vehicle.--The term `previously-
owned clean vehicle' means, with respect to a taxpayer, a motor
vehicle--
``(A) the model year of which is at least 2 years
earlier than the calendar year in which the taxpayer
acquires such vehicle,
``(B) the original use of which commences with a
person other than the taxpayer,
``(C) which is acquired by the taxpayer in a
qualified sale, and
``(D) which--
``(i) meets the requirements of subparagraphs
(C), (D), (E), (F), and (H) (except for clause
(iv) thereof) of section 30D(d)(1), or
``(ii) is a motor vehicle which--
``(I) satisfies the requirements
under subparagraphs (A) and (B) of
section 30B(b)(3), and
``(II) has a gross vehicle weight
rating of less than 14,000 pounds.
``(2) Qualified sale.--The term `qualified sale' means a
sale of a motor vehicle--
``(A) by a dealer (as defined in section 30D(g)(8)),
``(B) for a sale price which does not exceed
$25,000, and
``(C) which is the first transfer since the date of
the enactment of this section to a qualified buyer other
than the person with whom the original use of such
vehicle commenced.
``(3) Qualified buyer.--The term `qualified buyer' means,
with respect to a sale of a motor vehicle, a taxpayer--
``(A) who is an individual,
``(B) who purchases such vehicle for use and not for
resale,
``(C) with respect to whom no deduction is allowable
with respect to another taxpayer under section 151, and
``(D) who has not been allowed a credit under this
section for any sale during the 3-year period ending on
the date of the sale of such vehicle.
``(4) Motor vehicle; capacity.--The terms `motor vehicle'
and `capacity' have the meaning given such terms in paragraphs
(2) and (4) of section 30D(d), respectively.
``(d) VIN Number Requirement.--No credit shall be allowed under
subsection (a) with respect to any vehicle unless the taxpayer includes
the vehicle identification number of such vehicle on the return of tax
for the taxable year.
``(e) Application of Certain Rules.--For purposes of this section,
rules similar to the rules of section 30D(f) (without regard to
paragraph (10) or (11) thereof) shall apply for purposes of this
section.
``(f) Termination.--No credit shall be allowed under this section
with respect to any vehicle acquired after December 31, 2032.''.
(b) Transfer of Credit.--Section 25E, as added by subsection (a), is
amended--
(1) by redesignating subsection (f) as subsection (g), and
(2) by inserting after subsection (e) the following:
[[Page 136 STAT. 1964]]
``(f) <<NOTE: Applicability.>> Transfer of Credit.--Rules similar
to the rules of section 30D(g) shall apply.''.
(c) Conforming Amendments.--Section 6213(g)(2), as amended by the
preceding provisions of this Act, is amended--
(1) in subparagraph (S), by striking ``and'' at the end,
(2) in subparagraph (T), by striking the period at the end
and inserting ``, and'', and
(3) by inserting after subparagraph (T) the following:
``(U) an omission of a correct vehicle
identification number required under section 25E(d)
(relating to credit for previously-owned clean vehicles)
to be included on a return.''.
(d) Clerical Amendment.--The table of sections for subpart A of part
IV of subchapter A of chapter 1 <<NOTE: 26 USC 21 prec.>> is amended by
inserting after the item relating to section 25D the following new item:
``Sec. 25E. Previously-owned clean vehicles.''.
(e) <<NOTE: Applicability. 26 USC 25E note.>> Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to vehicles acquired
after December 31, 2022.
(2) Transfer of credit.--The amendments made by subsection
(b) shall apply to vehicles acquired after December 31, 2023.
SEC. 13403. QUALIFIED COMMERCIAL CLEAN VEHICLES.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1,
as amended by the preceding provisions of this Act, is amended by adding
at the end the following new section:
``SEC. 45W. <<NOTE: 26 USC 45W.>> CREDIT FOR QUALIFIED COMMERCIAL
CLEAN VEHICLES.
``(a) In General.--For purposes of section 38, the qualified
commercial clean vehicle credit for any taxable year is an amount equal
to the sum of the credit amounts determined under subsection (b) with
respect to each qualified commercial clean vehicle placed in service by
the taxpayer during the taxable year.
``(b) Per Vehicle Amount.--
``(1) In general.--Subject to paragraph (4), the amount
determined under this subsection with respect to any qualified
commercial clean vehicle shall be equal to the lesser of--
``(A) 15 percent of the basis of such vehicle (30
percent in the case of a vehicle not powered by a
gasoline or diesel internal combustion engine), or
``(B) the incremental cost of such vehicle.
``(2) Incremental cost.--For purposes of paragraph (1)(B),
the incremental cost of any qualified commercial clean vehicle
is an amount equal to the excess of the purchase price for such
vehicle over such price of a comparable vehicle.
``(3) <<NOTE: Definition.>> Comparable vehicle.--For
purposes of this subsection, the term `comparable vehicle'
means, with respect to any qualified commercial clean vehicle,
any vehicle which is powered solely by a gasoline or diesel
internal combustion engine and which is comparable in size and
use to such vehicle.
``(4) Limitation.--The amount determined under this
subsection with respect to any qualified commercial clean
vehicle shall not exceed--
``(A) in the case of a vehicle which has a gross
vehicle weight rating of less than 14,000 pounds,
$7,500, and
[[Page 136 STAT. 1965]]
``(B) in the case of a vehicle not described in
subparagraph (A), $40,000.
``(c) <<NOTE: Definition.>> Qualified Commercial Clean Vehicle.--
For purposes of this section, the term `qualified commercial clean
vehicle' means any vehicle which--
``(1) meets the requirements of section 30D(d)(1)(C) and is
acquired for use or lease by the taxpayer and not for resale,
``(2) either--
``(A) meets the requirements of subparagraph (D) of
section 30D(d)(1) and is manufactured primarily for use
on public streets, roads, and highways (not including a
vehicle operated exclusively on a rail or rails), or
``(B) is mobile machinery, as defined in section
4053(8) (including vehicles that are not designed to
perform a function of transporting a load over the
public highways),
``(3) either--
``(A) is propelled to a significant extent by an
electric motor which draws electricity from a battery
which has a capacity of not less than 15 kilowatt hours
(or, in the case of a vehicle which has a gross vehicle
weight rating of less than 14,000 pounds, 7 kilowatt
hours) and is capable of being recharged from an
external source of electricity, or
``(B) is a motor vehicle which satisfies the
requirements under subparagraphs (A) and (B) of section
30B(b)(3), and
``(4) is of a character subject to the allowance for
depreciation.
``(d) Special Rules.--
``(1) <<NOTE: Applicability.>> In general.--Rules similar to
the rules under subsection (f) of section 30D (without regard to
paragraph (10) or (11) thereof) shall apply for purposes of this
section.
``(2) Vehicles placed in service by tax-exempt entities.--
Subsection (c)(4) shall not apply to any vehicle which is not
subject to a lease and which is placed in service by a tax-
exempt entity described in clause (i), (ii), or (iv) of section
168(h)(2)(A).
``(3) No double benefit.--No credit shall be allowed under
this section with respect to any vehicle for which a credit was
allowed under section 30D.
``(e) VIN Number Requirement.--No credit shall be determined under
subsection (a) with respect to any vehicle unless the taxpayer includes
the vehicle identification number of such vehicle on the return of tax
for the taxable year.
``(f) <<NOTE: Determination.>> Regulations and Guidance.--The
Secretary shall issue such regulations or other guidance as the
Secretary determines necessary to carry out the purposes of this
section, including regulations or other guidance relating to
determination of the incremental cost of any qualified commercial clean
vehicle.
``(g) Termination.--No credit shall be determined under this section
with respect to any vehicle acquired after December 31, 2032.''.
(b) Conforming Amendments.--
(1) Section 38(b), as amended by the preceding provisions of
this Act, <<NOTE: 26 USC 38.>> is amended--
(A) in paragraph (35), by striking ``plus'' at the
end,
(B) in paragraph (36), by striking the period at the
end and inserting ``, plus'', and
[[Page 136 STAT. 1966]]
(C) by adding at the end the following new
paragraph:
``(37) the qualified commercial clean vehicle credit
determined under section 45W.''.
(2) Section 6213(g)(2), as amended by the preceding
provisions of this Act, <<NOTE: 26 USC 6213.>> is amended--
(A) in subparagraph (T), by striking ``and'' at the
end,
(B) in subparagraph (U), by striking the period at
the end and inserting ``, and'', and
(C) by inserting after subparagraph (U) the
following:
``(V) an omission of a correct vehicle
identification number required under section 45W(e)
(relating to commercial clean vehicle credit) to be
included on a return.''.
(3) The table of sections for subpart D of part IV of
subchapter A of chapter 1, as amended by the preceding
provisions of this Act, <<NOTE: 26 USC 38 prec.>> is amended by
adding at the end the following new item:
``Sec. 45W. Qualified commercial clean vehicle credit.''.
(c) <<NOTE: 26 USC 45W note.>> Effective Date.--The amendments made
by this section shall apply to vehicles acquired after December 31,
2022.
SEC. 13404. ALTERNATIVE FUEL REFUELING PROPERTY CREDIT.
(a) In General.--Section 30C(g) is amended by striking ``December
31, 2021'' and inserting ``December 31, 2032''.
(b) Credit for Property of a Character Subject to Depreciation.--
(1) In general.--Section 30C(a) is amended by inserting ``(6
percent in the case of property of a character subject to
depreciation)'' after ``30 percent''.
(2) Modification of credit limitation.--Subsection (b) of
section 30C is amended--
(A) in the matter preceding paragraph (1)--
(i) by striking ``with respect to all'' and
inserting ``with respect to any single item of'',
and
(ii) by striking ``at a location'', and
(B) in paragraph (1), by striking ``$30,000 in the
case of a property'' and inserting ``$100,000 in the
case of any such item of property''.
(3) Bidirectional charging equipment included as qualified
alternative fuel vehicle refueling property.--Section 30C(c) is
amended to read as follows:
``(c) Qualified Alternative Fuel Vehicle Refueling Property.--For
purposes of this section--
``(1) <<NOTE: Definition.>> In general.--The term `qualified
alternative fuel vehicle refueling property' has the same
meaning as the term `qualified clean-fuel vehicle refueling
property' would have under section 179A if--
``(A) paragraph (1) of section 179A(d) did not apply
to property installed on property which is used as the
principal residence (within the meaning of section 121)
of the taxpayer, and
``(B) only the following were treated as clean-
burning fuels for purposes of section 179A(d):
``(i) Any fuel at least 85 percent of the
volume of which consists of one or more of the
following: ethanol, natural gas, compressed
natural gas, liquified natural gas, liquefied
petroleum gas, or hydrogen.
``(ii) Any mixture--
[[Page 136 STAT. 1967]]
``(I) which consists of two or more
of the following: biodiesel (as defined
in section 40A(d)(1)), diesel fuel (as
defined in section 4083(a)(3)), or
kerosene, and
``(II) at least 20 percent of the
volume of which consists of biodiesel
(as so defined) determined without
regard to any kerosene in such mixture.
``(iii) Electricity.
``(2) Bidirectional charging equipment.--Property shall not
fail to be treated as qualified alternative fuel vehicle
refueling property solely because such property--
``(A) is capable of charging the battery of a motor
vehicle propelled by electricity, and
``(B) allows discharging electricity from such
battery to an electric load external to such motor
vehicle.''.
(c) Certain Electric Charging Stations Included as Qualified
Alternative Fuel Vehicle Refueling Property.--Section 30C <<NOTE: 26 USC
30C.>> is amended by redesignating subsections (f) and (g) as
subsections (g) and (h), respectively, and by inserting after subsection
(e) the following:
``(f) Special Rule for Electric Charging Stations for Certain
Vehicles With 2 or 3 Wheels.--For purposes of this section--
``(1) <<NOTE: Definition.>> In general.--The term
`qualified alternative fuel vehicle refueling property' includes
any property described in subsection (c) for the recharging of a
motor vehicle described in paragraph (2), but only if such
property--
``(A) meets the requirements of subsection (a)(2),
and
``(B) is of a character subject to depreciation.
``(2) Motor vehicle.--A motor vehicle is described in this
paragraph if the motor vehicle--
``(A) is manufactured primarily for use on public
streets, roads, or highways (not including a vehicle
operated exclusively on a rail or rails),
``(B) has 2 or 3 wheels, and
``(C) is propelled by electricity.''.
(d) Wage and Apprenticeship Requirements.--Section 30C, as amended
by this section, is further amended by redesignating subsections (g) and
(h) as subsections (h) and (i) and by inserting after subsection (f) the
following new subsection:
``(g) Wage and Apprenticeship Requirements.--
``(1) Increased credit amount.--
``(A) In general.--In the case of any qualified
alternative fuel vehicle refueling project which
satisfies the requirements of subparagraph (C), the
amount of the credit determined under subsection (a) for
any qualified alternative fuel vehicle refueling
property of a character subject to an allowance for
depreciation which is part of such project shall be
equal to such amount (determined without regard to this
sentence) multiplied by 5.
``(B) Qualified alternative fuel vehicle refueling
project.-- <<NOTE: Definition.>> For purposes of this
subsection, the term `qualified alternative fuel vehicle
refueling project' means a project consisting of one or
more properties that are part of a single project.
[[Page 136 STAT. 1968]]
``(C) Project requirements.--A project meets the
requirements of this subparagraph if it is one of the
following:
``(i) <<NOTE: Time
period. Publication. Guidelines.>> A project the
construction of which begins prior to the date
that is 60 days after the Secretary publishes
guidance with respect to the requirements of
paragraphs (2)(A) and (3).
``(ii) A project which satisfies the
requirements of paragraphs (2)(A) and (3).
``(2) Prevailing wage requirements.--
``(A) In general.--The requirements described in
this subparagraph with respect to any qualified
alternative fuel vehicle refueling project are that the
taxpayer shall ensure that any laborers and mechanics
employed by the taxpayer or any contractor or
subcontractor in the construction of any qualified
alternative fuel vehicle refueling property which is
part of such project shall be paid wages at rates not
less than the prevailing rates for construction,
alteration, or repair of a similar character in the
locality in which such project is located as most
recently determined by the Secretary of Labor, in
accordance with subchapter IV of chapter 31 of title 40,
United States Code.
``(B) <<NOTE: Applicability.>> Correction and
penalty related to failure to satisfy wage
requirements.--Rules similar to the rules of section
45(b)(7)(B) shall apply.
``(3) <<NOTE: Applicability.>> Apprenticeship
requirements.--Rules similar to the rules of section 45(b)(8)
shall apply.
``(4) <<NOTE: Determination. Requirements. Records.>> Regulations
and guidance.--The Secretary shall issue such regulations or
other guidance as the Secretary determines necessary to carry
out the purposes of this subsection, including regulations or
other guidance which provides for requirements for recordkeeping
or information reporting for purposes of administering the
requirements of this subsection.''.
(e) Eligible Census Tracts.--Subsection (c) of section 30C, as
amended by subsection (b)(3), <<NOTE: 26 USC 30C.>> is amended by
adding at the end the following:
``(3) Property required to be located in eligible census
tracts.--
``(A) In general.--Property shall not be treated as
qualified alternative fuel vehicle refueling property
unless such property is placed in service in an eligible
census tract.
``(B) <<NOTE: Definitions.>> Eligible census
tract.--
``(i) In general.--For purposes of this
paragraph, the term `eligible census tract' means
any population census tract which--
``(I) is described in section
45D(e), or
``(II) is not an urban area.
``(ii) Urban area.--For purposes of clause
(i)(II), the term `urban area' means a census
tract (as defined by the Bureau of the Census)
which, according to the most recent decennial
census, has been designated as an urban area by
the Secretary of Commerce.''.
(f) <<NOTE: Applicability. 26 USC 30C note.>> Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to property placed
in service after December 31, 2022.
[[Page 136 STAT. 1969]]
(2) Extension.--The amendments made by subsection (a) shall
apply to property placed in service after December 31, 2021.
PART 5--INVESTMENT IN CLEAN ENERGY MANUFACTURING AND ENERGY SECURITY
SEC. 13501. EXTENSION OF THE ADVANCED ENERGY PROJECT CREDIT.
(a) Extension of Credit.--Section 48C <<NOTE: 26 USC 48C.>> is
amended by redesignating subsection (e) as subsection (f) and by
inserting after subsection (d) the following new subsection:
``(e) Additional Allocations.--
``(1) <<NOTE: Deadline.>> In general.--Not later than 180
days after the date of enactment of this subsection, the
Secretary shall establish a program to consider and award
certifications for qualified investments eligible for credits
under this section to qualifying advanced energy project
sponsors.
``(2) Limitation.--The total amount of credits which may be
allocated under the program established under paragraph (1)
shall not exceed $10,000,000,000, of which not greater than
$6,000,000,000 may be allocated to qualified investments which
are not located within a census tract which--
``(A) is described in clause (iii) of section
45(b)(11)(B), and
``(B) prior to the date of enactment of this
subsection, had no project which received a
certification and allocation of credits under subsection
(d).
``(3) <<NOTE: Time period.>> Certifications.--
``(A) Application requirement.--Each applicant for
certification under this subsection shall submit an
application at such time and containing such information
as the Secretary may require.
``(B) <<NOTE: Notification.>> Time to meet criteria
for certification.--Each applicant for certification
shall have 2 years from the date of acceptance by the
Secretary of the application during which to provide to
the Secretary evidence that the requirements of the
certification have been met.
``(C) Period of issuance.--An applicant which
receives a certification shall have 2 years from the
date of issuance of the certification in order to place
the project in service and to notify the Secretary that
such project has been so placed in service, and if such
project is not placed in service by that time period,
then the certification shall no longer be valid. If any
certification is revoked under this subparagraph, the
amount of the limitation under paragraph (2) shall be
increased by the amount of the credit with respect to
such revoked certification.
``(D) <<NOTE: Determination.>> Location of
project.--In the case of an applicant which receives a
certification, if the Secretary determines that the
project has been placed in service at a location which
is materially different than the location specified in
the application for such project, the certification
shall no longer be valid.
``(4) Credit rate conditioned upon wage and apprenticeship
requirements.--
``(A) <<NOTE: Determination.>> Base rate.--For
purposes of allocations under this subsection, the
amount of the credit determined under
[[Page 136 STAT. 1970]]
subsection (a) shall be determined by substituting `6
percent' for `30 percent'.
``(B) Alternative rate.--In the case of any project
which satisfies the requirements of paragraphs (5)(A)
and (6), subparagraph (A) shall not apply.
``(5) Prevailing wage requirements.--
``(A) In general.--The requirements described in
this subparagraph with respect to a project are that the
taxpayer shall ensure that any laborers and mechanics
employed by the taxpayer or any contractor or
subcontractor in the re-equipping, expansion, or
establishment of a manufacturing facility shall be paid
wages at rates not less than the prevailing rates for
construction, alteration, or repair of a similar
character in the locality in which such project is
located as most recently determined by the Secretary of
Labor, in accordance with subchapter IV of chapter 31 of
title 40, United States Code.
``(B) Correction and penalty related to failure to
satisfy wage requirements.--
<<NOTE: Applicability.>> Rules similar to the rules of
section 45(b)(7)(B) shall apply.
``(6) <<NOTE: Applicability.>> Apprenticeship
requirements.--Rules similar to the rules of section 45(b)(8)
shall apply.
``(7) <<NOTE: Certification. Public information.>>
Disclosure of allocations.--The Secretary shall, upon making a
certification under this subsection, publicly disclose the
identity of the applicant and the amount of the credit with
respect to such applicant.''.
(b) Modification of Qualifying Advanced Energy Projects.--Section
48C(c)(1)(A) <<NOTE: 26 USC 48C.>> is amended--
(1) by inserting ``, any portion of the qualified investment
of which is certified by the Secretary under subsection (e) as
eligible for a credit under this section'' after ``means a
project'',
(2) in clause (i)--
(A) by striking ``a manufacturing facility for the
production of'' and inserting ``an industrial or
manufacturing facility for the production or recycling
of'',
(B) in clause (I), by inserting ``water,'' after
``sun,'',
(C) in clause (II), by striking ``an energy storage
system for use with electric or hybrid-electric motor
vehicles'' and inserting ``energy storage systems and
components'',
(D) in clause (III), by striking ``grids to support
the transmission of intermittent sources of renewable
energy, including storage of such energy'' and inserting
``grid modernization equipment or components'',
(E) in subclause (IV), by striking ``and sequester
carbon dioxide emissions'' and inserting ``, remove,
use, or sequester carbon oxide emissions'',
(F) by striking subclause (V) and inserting the
following:
``(V) equipment designed to refine,
electrolyze, or blend any fuel,
chemical, or product which is--
``(aa) renewable, or
``(bb) low-carbon and low-
emission,'',
(G) by striking subclause (VI),
(H) by redesignating subclause (VII) as subclause
(IX),
(I) by inserting after subclause (V) the following
new subclauses:
[[Page 136 STAT. 1971]]
``(VI) property designed to produce
energy conservation technologies
(including residential, commercial, and
industrial applications),
``(VII) light-, medium-, or heavy-
duty electric or fuel cell vehicles, as
well as--
``(aa) technologies,
components, or materials for
such vehicles, and
``(bb) associated charging
or refueling infrastructure,
``(VIII) hybrid vehicles with a
gross vehicle weight rating of not less
than 14,000 pounds, as well as
technologies, components, or materials
for such vehicles, or'', and
(J) in subclause (IX), as so redesignated, by
striking ``and'' at the end, and
(3) by striking clause (ii) and inserting the following:
``(ii) which re-equips an industrial or
manufacturing facility with equipment designed to
reduce greenhouse gas emissions by at least 20
percent through the installation of--
``(I) low- or zero-carbon process
heat systems,
``(II) carbon capture, transport,
utilization and storage systems,
``(III) energy efficiency and
reduction in waste from industrial
processes, or
``(IV) any other industrial
technology designed to reduce greenhouse
gas emissions, as determined by the
Secretary, or
``(iii) which re-equips, expands, or
establishes an industrial facility for the
processing, refining, or recycling of critical
materials (as defined in section 7002(a) of the
Energy Act of 2020 (30 U.S.C. 1606(a)).''.
(c) Conforming Amendment.--Subparagraph (A) of section
48C(c)(2) <<NOTE: 26 USC 48C.>> is amended to read as follows:
``(A) which is necessary for--
``(i) the production or recycling of property
described in clause (i) of paragraph (1)(A),
``(ii) re-equipping an industrial or
manufacturing facility described in clause (ii) of
such paragraph, or
``(iii) re-equipping, expanding, or
establishing an industrial facility described in
clause (iii) of such paragraph,''.
(d) Denial of Double Benefit.--48C(f), as redesignated by this
section, is amended by striking ``or 48B'' and inserting ``48B, 48E,
45Q, or 45V''.
(e) <<NOTE: 26 USC 48C note.>> Effective Date.--The amendments made
by this section shall take effect on January 1, 2023.
SEC. 13502. ADVANCED MANUFACTURING PRODUCTION CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1,
as amended by the preceding provisions of this Act, is amended by adding
at the end the following new section:
``SEC. 45X. <<NOTE: 26 USC 45X.>> ADVANCED MANUFACTURING
PRODUCTION CREDIT.
``(a) In General.--
``(1) Allowance of credit.--For purposes of section 38, the
advanced manufacturing production credit for any taxable year is
an amount equal to the sum of the credit amounts
[[Page 136 STAT. 1972]]
determined under subsection (b) with respect to each eligible
component which is--
``(A) produced by the taxpayer, and
``(B) during the taxable year, sold by such taxpayer
to an unrelated person.
``(2) Production and sale must be in trade or business.--Any
eligible component produced and sold by the taxpayer shall be
taken into account only if the production and sale described in
paragraph (1) is in a trade or business of the taxpayer.
``(3) Unrelated person.--
``(A) In general.--For purposes of this subsection,
a taxpayer shall be treated as selling components to an
unrelated person if such component is sold to such
person by a person related to the taxpayer.
``(B) Election.--
``(i) In general.--At the election of the
taxpayer (in such form and manner as the Secretary
may prescribe), a sale of components by such
taxpayer to a related person shall be deemed to
have been made to an unrelated person.
``(ii) Requirement.--As a condition of, and
prior to, any election described in clause (i),
the Secretary may require such information or
registration as the Secretary deems necessary for
purposes of preventing duplication, fraud, or any
improper or excessive amount determined under
paragraph (1).
``(b) Credit Amount.--
``(1) In general.--Subject to paragraph (3), the amount
determined under this subsection with respect to any eligible
component, including any eligible component it incorporates,
shall be equal to--
``(A) in the case of a thin film photovoltaic cell
or a crystalline photovoltaic cell, an amount equal to
the product of--
``(i) 4 cents, multiplied by
``(ii) the capacity of such cell (expressed on
a per direct current watt basis),
``(B) in the case of a photovoltaic wafer, $12 per
square meter,
``(C) in the case of solar grade polysilicon, $3 per
kilogram,
``(D) in the case of a polymeric backsheet, 40 cents
per square meter,
``(E) in the case of a solar module, an amount equal
to the product of--
``(i) 7 cents, multiplied by
``(ii) the capacity of such module (expressed
on a per direct current watt basis),
``(F) in the case of a wind energy component--
``(i) if such component is a related offshore
wind vessel, an amount equal to 10 percent of the
sales price of such vessel, and
``(ii) if such component is not described in
clause (i), an amount equal to the product of--
[[Page 136 STAT. 1973]]
``(I) the applicable amount with
respect to such component (as determined
under paragraph (2)(A)), multiplied by
``(II) the total rated capacity
(expressed on a per watt basis) of the
completed wind turbine for which such
component is designed,
``(G) in the case of a torque tube, 87 cents per
kilogram,
``(H) in the case of a structural fastener, $2.28
per kilogram,
``(I) in the case of an inverter, an amount equal to
the product of--
``(i) the applicable amount with respect to
such inverter (as determined under paragraph
(2)(B)), multiplied by
``(ii) the capacity of such inverter
(expressed on a per alternating current watt
basis),
``(J) in the case of electrode active materials, an
amount equal to 10 percent of the costs incurred by the
taxpayer with respect to production of such materials,
``(K) in the case of a battery cell, an amount equal
to the product of--
``(i) $35, multiplied by
``(ii) subject to paragraph (4), the capacity
of such battery cell (expressed on a kilowatt-hour
basis),
``(L) in the case of a battery module, an amount
equal to the product of--
``(i) $10 (or, in the case of a battery module
which does not use battery cells, $45), multiplied
by
``(ii) subject to paragraph (4), the capacity
of such battery module (expressed on a kilowatt-
hour basis), and
``(M) in the case of any applicable critical
mineral, an amount equal to 10 percent of the costs
incurred by the taxpayer with respect to production of
such mineral.
``(2) Applicable amounts.--
``(A) Wind energy components.--For purposes of
paragraph (1)(F)(ii), the applicable amount with respect
to any wind energy component shall be--
``(i) in the case of a blade, 2 cents,
``(ii) in the case of a nacelle, 5 cents,
``(iii) in the case of a tower, 3 cents, and
``(iv) in the case of an offshore wind
foundation--
``(I) which uses a fixed platform, 2
cents, or
``(II) which uses a floating
platform, 4 cents.
``(B) Inverters.--For purposes of paragraph (1)(I),
the applicable amount with respect to any inverter shall
be--
``(i) in the case of a central inverter, 0.25
cents,
``(ii) in the case of a utility inverter, 1.5
cents,
``(iii) in the case of a commercial inverter,
2 cents,
``(iv) in the case of a residential inverter,
6.5 cents, and
``(v) in the case of a microinverter or a
distributed wind inverter, 11 cents.
``(3) <<NOTE: Time periods.>> Phase out.--
``(A) <<NOTE: Effective date.>> In general.--Subject
to subparagraph (C), in the case of any eligible
component sold after December 31, 2029, the amount
determined under this subsection with
[[Page 136 STAT. 1974]]
respect to such component shall be equal to the product
of--
``(i) the amount determined under paragraph
(1) with respect to such component, as determined
without regard to this paragraph, multiplied by
``(ii) the phase out percentage under
subparagraph (B).
``(B) Phase out percentage.--The phase out
percentage under this subparagraph is equal to--
``(i) in the case of an eligible component
sold during calendar year 2030, 75 percent,
``(ii) in the case of an eligible component
sold during calendar year 2031, 50 percent,
``(iii) in the case of an eligible component
sold during calendar year 2032, 25 percent,
``(iv) in the case of an eligible component
sold after December 31, 2032, 0 percent.
``(C) <<NOTE: Determination.>> Exception.--For
purposes of determining the amount under this subsection
with respect to any applicable critical mineral, this
paragraph shall not apply.
``(4) Limitation on capacity of battery cells and battery
modules.--
``(A) In general.--For purposes of subparagraph
(K)(ii) or (L)(ii) of paragraph (1), the capacity
determined under either subparagraph with respect to a
battery cell or battery module shall not exceed a
capacity-to-power ratio of 100:1.
``(B) <<NOTE: Definition.>> Capacity-to-power
ratio.--For purposes of this paragraph, the term
`capacity-to-power ratio' means, with respect to a
battery cell or battery module, the ratio of the
capacity of such cell or module to the maximum discharge
amount of such cell or module.
``(c) Definitions.--For purposes of this section--
``(1) Eligible component.--
``(A) In general.--The term `eligible component'
means--
``(i) any solar energy component,
``(ii) any wind energy component,
``(iii) any inverter described in
subparagraphs (B) through (G) of paragraph (2),
``(iv) any qualifying battery component, and
``(v) any applicable critical mineral.
``(B) Application with other credits.--The term
`eligible component' shall not include any property
which is produced at a facility if the basis of any
property which is part of such facility is taken into
account for purposes of the credit allowed under section
48C after the date of the enactment of this section.
``(2) Inverters.--
``(A) In general.--The term `inverter' means an end
product which is suitable to convert direct current
electricity from 1 or more solar modules or certified
distributed wind energy systems into alternating current
electricity.
``(B) Central inverter.--The term `central inverter'
means an inverter which is suitable for large utility-
scale systems and has a capacity which is greater than
1,000
[[Page 136 STAT. 1975]]
kilowatts (expressed on a per alternating current watt
basis).
``(C) Commercial inverter.--The term `commercial
inverter' means an inverter which--
``(i) is suitable for commercial or utility-
scale applications,
``(ii) has a rated output of 208, 480, 600, or
800 volt three-phase power, and
``(iii) has a capacity which is not less than
20 kilowatts and not greater than 125 kilowatts
(expressed on a per alternating current watt
basis).
``(D) Distributed wind inverter.--
``(i) In general.--The term `distributed wind
inverter' means an inverter which--
``(I) is used in a residential or
non-residential system which utilizes 1
or more certified distributed wind
energy systems, and
``(II) has a rated output of not
greater than 150 kilowatts.
``(ii) Certified distributed wind energy
system.--The term `certified distributed wind
energy system' means a wind energy system which is
certified by an accredited certification agency to
meet Standard 9.1-2009 of the American Wind Energy
Association (including any subsequent revisions to
or modifications of such Standard which have been
approved by the American National Standards
Institute).
``(E) Microinverter.--The term `microinverter' means
an inverter which--
``(i) is suitable to connect with one solar
module,
``(ii) has a rated output of--
``(I) 120 or 240 volt single-phase
power, or
``(II) 208 or 480 volt three-phase
power, and
``(iii) has a capacity which is not greater
than 650 watts (expressed on a per alternating
current watt basis).
``(F) Residential inverter.--The term `residential
inverter' means an inverter which--
``(i) is suitable for a residence,
``(ii) has a rated output of 120 or 240 volt
single-phase power, and
``(iii) has a capacity which is not greater
than 20 kilowatts (expressed on a per alternating
current watt basis).
``(G) Utility inverter.--The term `utility inverter'
means an inverter which--
``(i) is suitable for commercial or utility-
scale systems,
``(ii) has a rated output of not less than 600
volt three-phase power, and
``(iii) has a capacity which is greater than
125 kilowatts and not greater than 1000 kilowatts
(expressed on a per alternating current watt
basis)
``(3) Solar energy component.--
``(A) In general.--The term `solar energy component'
means any of the following:
``(i) Solar modules.
[[Page 136 STAT. 1976]]
``(ii) Photovoltaic cells.
``(iii) Photovoltaic wafers.
``(iv) Solar grade polysilicon.
``(v) Torque tubes or structural fasteners.
``(vi) Polymeric backsheets.
``(B) Associated definitions.--
``(i) Photovoltaic cell.--The term
`photovoltaic cell' means the smallest
semiconductor element of a solar module which
performs the immediate conversion of light into
electricity.
``(ii) Photovoltaic wafer.--The term
`photovoltaic wafer' means a thin slice, sheet, or
layer of semiconductor material of at least 240
square centimeters--
``(I) produced by a single
manufacturer either--
``(aa) directly from molten
or evaporated solar grade
polysilicon or deposition of
solar grade thin film
semiconductor photon absorber
layer, or
``(bb) through formation of
an ingot from molten polysilicon
and subsequent slicing, and
``(II) which comprises the substrate
or absorber layer of one or more
photovoltaic cells.
``(iii) Polymeric backsheet.--The term
`polymeric backsheet' means a sheet on the back of
a solar module which acts as an electric insulator
and protects the inner components of such module
from the surrounding environment.
``(iv) Solar grade polysilicon.--The term
`solar grade polysilicon' means silicon which is--
``(I) suitable for use in
photovoltaic manufacturing, and
``(II) purified to a minimum purity
of 99.999999 percent silicon by mass.
``(v) Solar module.--The term `solar module'
means the connection and lamination of
photovoltaic cells into an environmentally
protected final assembly which is--
``(I) suitable to generate
electricity when exposed to sunlight,
and
``(II) ready for installation
without an additional manufacturing
process.
``(vi) Solar tracker.--The term `solar
tracker' means a mechanical system that moves
solar modules according to the position of the sun
and to increase energy output.
``(vii) Solar tracker components.--
``(I) Torque tube.--The term `torque
tube' means a structural steel support
element (including longitudinal purlins)
which--
``(aa) is part of a solar
tracker,
``(bb) is of any cross-
sectional shape,
``(cc) may be assembled from
individually manufactured
segments,
``(dd) spans longitudinally
between foundation posts,
[[Page 136 STAT. 1977]]
``(ee) supports solar panels
and is connected to a mounting
attachment for solar panels
(with or without separate module
interface rails), and
``(ff) is rotated by means
of a drive system.
``(II) Structural fastener.--The
term `structural fastener' means a
component which is used--
``(aa) to connect the
mechanical and drive system
components of a solar tracker to
the foundation of such solar
tracker,
``(bb) to connect torque
tubes to drive assemblies, or
``(cc) to connect segments
of torque tubes to one another.
``(4) Wind energy component.--
``(A) In general.--The term `wind energy component'
means any of the following:
``(i) Blades.
``(ii) Nacelles.
``(iii) Towers.
``(iv) Offshore wind foundations.
``(v) Related offshore wind vessels.
``(B) Associated definitions.--
``(i) Blade.--The term `blade' means an
airfoil-shaped blade which is responsible for
converting wind energy to low-speed rotational
energy.
``(ii) Offshore wind foundation.--The term
`offshore wind foundation' means the component
(including transition piece) which secures an
offshore wind tower and any above-water turbine
components to the seafloor using--
``(I) fixed platforms, such as
offshore wind monopiles, jackets, or
gravity-based foundations, or
``(II) floating platforms and
associated mooring systems.
``(iii) Nacelle.--The term `nacelle' means the
assembly of the drivetrain and other tower-top
components of a wind turbine (with the exception
of the blades and the hub) within their cover
housing.
``(iv) Related offshore wind vessel.--The term
`related offshore wind vessel' means any vessel
which is purpose-built or retrofitted for purposes
of the development, transport, installation,
operation, or maintenance of offshore wind energy
components.
``(v) Tower.--The term `tower' means a tubular
or lattice structure which supports the nacelle
and rotor of a wind turbine.
``(5) Qualifying battery component.--
``(A) In general.--The term `qualifying battery
component' means any of the following:
``(i) Electrode active materials.
``(ii) Battery cells.
``(iii) Battery modules.
``(B) Associated definitions.--
``(i) Electrode active material.--The term
`electrode active material' means cathode
materials, anode
[[Page 136 STAT. 1978]]
materials, anode foils, and electrochemically
active materials, including solvents, additives,
and electrolyte salts that contribute to the
electrochemical processes necessary for energy
storage .
``(ii) Battery cell.--The term `battery cell'
means an electrochemical cell--
``(I) comprised of 1 or more
positive electrodes and 1 or more
negative electrodes,
``(II) with an energy density of not
less than 100 watt-hours per liter, and
``(III) capable of storing at least
12 watt-hours of energy.
``(iii) Battery module.--The term `battery
module' means a module--
``(I)(aa) in the case of a module
using battery cells, with 2 or more
battery cells which are configured
electrically, in series or parallel, to
create voltage or current, as
appropriate, to a specified end use, or
``(bb) with no battery cells, and
``(II) with an aggregate capacity of
not less than 7 kilowatt-hours (or, in
the case of a module for a hydrogen fuel
cell vehicle, not less than 1 kilowatt-
hour).
``(6) Applicable critical minerals.--The term `applicable
critical mineral' means any of the following:
``(A) Aluminum.--Aluminum which is--
``(i) converted from bauxite to a minimum
purity of 99 percent alumina by mass, or
``(ii) purified to a minimum purity of 99.9
percent aluminum by mass.
``(B) Antimony.--Antimony which is--
``(i) converted to antimony trisulfide
concentrate with a minimum purity of 90 percent
antimony trisulfide by mass, or
``(ii) purified to a minimum purity of 99.65
percent antimony by mass.
``(C) Barite.--Barite which is barium sulfate
purified to a minimum purity of 80 percent barite by
mass.
``(D) Beryllium.--Beryllium which is--
``(i) converted to copper-beryllium master
alloy, or
``(ii) purified to a minimum purity of 99
percent beryllium by mass.
``(E) Cerium.--Cerium which is--
``(i) converted to cerium oxide which is
purified to a minimum purity of 99.9 percent
cerium oxide by mass, or
``(ii) purified to a minimum purity of 99
percent cerium by mass.
``(F) Cesium.--Cesium which is--
``(i) converted to cesium formate or cesium
carbonate, or
``(ii) purified to a minimum purity of 99
percent cesium by mass.
``(G) Chromium.--Chromium which is--
``(i) converted to ferrochromium consisting of
not less than 60 percent chromium by mass, or
[[Page 136 STAT. 1979]]
``(ii) purified to a minimum purity of 99
percent chromium by mass.
``(H) Cobalt.--Cobalt which is--
``(i) converted to cobalt sulfate, or
``(ii) purified to a minimum purity of 99.6
percent cobalt by mass.
``(I) Dysprosium.--Dysprosium which is--
``(i) converted to not less than 99 percent
pure dysprosium iron alloy by mass, or
``(ii) purified to a minimum purity of 99
percent dysprosium by mass.
``(J) Europium.--Europium which is--
``(i) converted to europium oxide which is
purified to a minimum purity of 99.9 percent
europium oxide by mass, or
``(ii) purified to a minimum purity of 99
percent by mass.
``(K) Fluorspar.--Fluorspar which is--
``(i) converted to fluorspar which is purified
to a minimum purity of 97 percent calcium fluoride
by mass, or
``(ii) purified to a minimum purity of 99
percent fluorspar by mass.
``(L) Gadolinium.--Gadolinium which is--
``(i) converted to gadolinium oxide which is
purified to a minimum purity of 99.9 percent
gadolinium oxide by mass, or
``(ii) purified to a minimum purity of 99
percent gadolinium by mass.
``(M) Germanium.--Germanium which is--
``(i) converted to germanium tetrachloride, or
``(ii) purified to a minimum purity of 99.99
percent germanium by mass.
``(N) Graphite.--Graphite which is purified to a
minimum purity of 99.9 percent graphitic carbon by mass.
``(O) Indium.--Indium which is--
``(i) converted to--
``(I) indium tin oxide, or
``(II) indium oxide which is
purified to a minimum purity of 99.9
percent indium oxide by mass, or
``(ii) purified to a minimum purity of 99
percent indium by mass.
``(P) Lithium.--Lithium which is--
``(i) converted to lithium carbonate or
lithium hydroxide, or
``(ii) purified to a minimum purity of 99.9
percent lithium by mass.
``(Q) Manganese.--Manganese which is--
``(i) converted to manganese sulphate, or
``(ii) purified to a minimum purity of 99.7
percent manganese by mass.
``(R) Neodymium.--Neodymium which is--
``(i) converted to neodymium-praseodymium
oxide which is purified to a minimum purity of 99
percent neodymium-praseodymium oxide by mass,
[[Page 136 STAT. 1980]]
``(ii) converted to neodymium oxide which is
purified to a minimum purity of 99.5 percent
neodymium oxide by mass
``(iii) purified to a minimum purity of 99.9
percent neodymium by mass.
``(S) Nickel.--Nickel which is--
``(i) converted to nickel sulphate, or
``(ii) purified to a minimum purity of 99
percent nickel by mass.
``(T) Niobium.--Niobium which is--
``(i) converted to ferronibium, or
``(ii) purified to a minimum purity of 99
percent niobium by mass.
``(U) Tellurium.--Tellurium which is--
``(i) converted to cadmium telluride, or
``(ii) purified to a minimum purity of 99
percent tellurium by mass.
``(V) Tin.--Tin which is purified to low alpha
emitting tin which--
``(i) has a purity of greater than 99.99
percent by mass, and
``(ii) possesses an alpha emission rate of not
greater than 0.01 counts per hour per centimeter
square.
``(W) Tungsten.--Tungsten which is converted to
ammonium paratungstate or ferrotungsten.
``(X) Vanadium.--Vanadium which is converted to
ferrovanadium or vanadium pentoxide.
``(Y) Yttrium.--Yttrium which is--
``(i) converted to yttrium oxide which is
purified to a minimum purity of 99.999 percent
yttrium oxide by mass, or
``(ii) purified to a minimum purity of 99.9
percent yttrium by mass.
``(Z) Other minerals.--Any of the following
minerals, provided that such mineral is purified to a
minimum purity of 99 percent by mass:
``(i) Arsenic.
``(ii) Bismuth.
``(iii) Erbium.
``(iv) Gallium.
``(v) Hafnium.
``(vi) Holmium.
``(vii) Iridium.
``(viii) Lanthanum.
``(ix) Lutetium.
``(x) Magnesium.
``(xi) Palladium.
``(xii) Platinum.
``(xiii) Praseodymium.
``(xiv) Rhodium.
``(xv) Rubidium.
``(xvi) Ruthenium.
``(xvii) Samarium.
``(xviii) Scandium.
``(xix) Tantalum.
``(xx) Terbium.
``(xxi) Thulium.
[[Page 136 STAT. 1981]]
``(xxii) Titanium.
``(xxiii) Ytterbium.
``(xxiv) Zinc.
``(xxv) Zirconium.
``(d) Special Rules.--In this section--
``(1) Related persons.--Persons shall be treated as related
to each other if such persons would be treated as a single
employer under the regulations prescribed under section 52(b).
``(2) Only production in the united states taken into
account.--Sales shall be taken into account under this section
only with respect to eligible components the production of which
is within--
``(A) the United States (within the meaning of
section 638(1)), or
``(B) a possession of the United States (within the
meaning of section 638(2)).
``(3) <<NOTE: Regulations. Applicability.>> Pass-thru in
the case of estates and trusts.--Under regulations prescribed by
the Secretary, rules similar to the rules of subsection (d) of
section 52 shall apply.
``(4) Sale of integrated components.--For purposes of this
section, a person shall be treated as having sold an eligible
component to an unrelated person if such component is
integrated, incorporated, or assembled into another eligible
component which is sold to an unrelated person.''.
(b) Conforming Amendments.--
(1) Section 38(b) of the Internal Revenue Code of 1986, as
amended by the preceding provisions of this Act <<NOTE: 26 USC
38.>> , is amended--
(A) in paragraph (36), by striking ``plus'' at the
end,
(B) in paragraph (37), by striking the period at the
end and inserting ``, plus'', and
(C) by adding at the end the following new
paragraph:
``(38) the advanced manufacturing production credit
determined under section 45X(a).''.
(2) The table of sections for subpart D of part IV of
subchapter A of chapter 1, as amended by the preceding
provisions of this Act, <<NOTE: 26 USC 38 prec.>> is amended by
adding at the end the following new item:
``Sec. 45X. Advanced manufacturing production credit.''.
(c) <<NOTE: 26 USC 45X note.>> Effective Date.--The amendments made
by this section shall apply to components produced and sold after
December 31, 2022.
PART 6--SUPERFUND
SEC. 13601. REINSTATEMENT OF SUPERFUND.
(a) Hazardous Substance Superfund Financing Rate.--
(1) Extension.--Section 4611 is amended by striking
subsection (e).
(2) Adjustment for inflation.--
(A) Section 4611(c)(2)(A) is amended by striking
``9.7 cents'' and inserting ``16.4 cents''.
(B) Section 4611(c) is amended by adding at the end
the following:
``(3) Adjustment for inflation.--
[[Page 136 STAT. 1982]]
``(A) <<NOTE: Effective date.>> In general.--In the
case of a year beginning after 2023, the amount in
paragraph (2)(A) shall be increased by an amount equal
to--
``(i) such amount, multiplied by
``(ii) the cost-of-living adjustment
determined under section 1(f)(3) for the calendar
year, determined by substituting `calendar year
2022' for `calendar year 2016' in subparagraph
(A)(ii) thereof.
``(B) Rounding.--If any amount as adjusted under
subparagraph (A) is not a multiple of $0.01, such amount
shall be rounded to the next lowest multiple of
$0.01.''.
(b) Authority for Advances.--Section 9507(d)(3)(B) <<NOTE: 26 USC
9507.>> is amended by striking ``December 31, 1995'' and inserting
``December 31, 2032''.
(c) <<NOTE: 26 USC 4611 note.>> Effective Date.--The amendments
made by this section shall take effect on January 1, 2023.
PART 7--INCENTIVES FOR CLEAN ELECTRICITY AND CLEAN TRANSPORTATION
SEC. 13701. CLEAN ELECTRICITY PRODUCTION CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1,
as amended by the preceding provisions of this Act, is amended by adding
at the end the following new section:
``SEC. 45Y. <<NOTE: 26 USC 45Y.>> CLEAN ELECTRICITY PRODUCTION
CREDIT.
``(a) Amount of Credit.--
``(1) In general.--For purposes of section 38, the clean
electricity production credit for any taxable year is an amount
equal to the product of--
``(A) the kilowatt hours of electricity--
``(i) produced by the taxpayer at a qualified
facility, and
``(ii)(I) sold by the taxpayer to an unrelated
person during the taxable year, or
``(II) in the case of a qualified facility
which is equipped with a metering device which is
owned and operated by an unrelated person, sold,
consumed, or stored by the taxpayer during the
taxable year, multiplied by
``(B) the applicable amount with respect to such
qualified facility.
``(2) Applicable amount.--
``(A) Base amount.--Subject to subsection (g)(7), in
the case of any qualified facility which is not
described in clause (i) or (ii) of subparagraph (B) and
does not satisfy the requirements described in clause
(iii) of such subparagraph, the applicable amount shall
be 0.3 cents.
``(B) Alternative amount.--Subject to subsection
(g)(7), in the case of any qualified facility--
``(i) with a maximum net output of less than 1
megawatt (as measured in alternating current),
``(ii) <<NOTE: Time
period. Publication. Guidelines.>> the
construction of which begins prior to the date
that is 60 days after the Secretary publishes
guidance with respect to the requirements of
paragraphs (9) and (10) of subsection (g), or
``(iii) which--
[[Page 136 STAT. 1983]]
``(I) satisfies the requirements
under paragraph (9) of subsection (g),
and
``(II) with respect to the
construction of such facility, satisfies
the requirements under paragraph (10) of
subsection (g),
the applicable amount shall be 1.5 cents.
``(b) Qualified Facility.--
``(1) In general.--
``(A) Definition.--Subject to subparagraphs (B),
(C), and (D), the term `qualified facility' means a
facility owned by the taxpayer--
``(i) which is used for the generation of
electricity,
``(ii) which is placed in service after
December 31, 2024, and
``(iii) for which the greenhouse gas emissions
rate (as determined under paragraph (2)) is not
greater than zero.
``(B) 10-year production credit.--For purposes of
this section, a facility shall only be treated as a
qualified facility during the 10-year period beginning
on the date the facility was originally placed in
service.
``(C) <<NOTE: Definition. Effective dates.>>
Expansion of facility; incremental production.--The term
`qualified facility' shall include either of the
following in connection with a facility described in
subparagraph (A) (without regard to clause (ii) of such
subparagraph) which was placed in service before January
1, 2025, but only to the extent of the increased amount
of electricity produced at the facility by reason of the
following:
``(i) A new unit which is placed in service
after December 31, 2024.
``(ii) Any additions of capacity which are
placed in service after December 31, 2024.
``(D) Coordination with other credits.--The term
`qualified facility' shall not include any facility for
which a credit determined under section 45, 45J, 45Q,
45U, 48, 48A, or 48E is allowed under section 38 for the
taxable year or any prior taxable year.
``(2) Greenhouse gas emissions rate.--
``(A) <<NOTE: Definition.>> In general.--For
purposes of this section, the term `greenhouse gas
emissions rate' means the amount of greenhouse gases
emitted into the atmosphere by a facility in the
production of electricity, expressed as grams of
CO<INF>2</INF>e per KWh.
``(B) Fuel combustion and gasification.--In the case
of a facility which produces electricity through
combustion or gasification, the greenhouse gas emissions
rate for such facility shall be equal to the net rate of
greenhouse gases emitted into the atmosphere by such
facility (taking into account lifecycle greenhouse gas
emissions, as described in section 211(o)(1)(H) of the
Clean Air Act (42 U.S.C. 7545(o)(1)(H))) in the
production of electricity, expressed as grams of
CO<INF>2</INF>e per KWh.
``(C) Establishment of emissions rates for
facilities.--
[[Page 136 STAT. 1984]]
``(i) <<NOTE: Deadline.>> Publishing emissions
rates.--The Secretary shall annually publish a
table that sets forth the greenhouse gas emissions
rates for types or categories of facilities, which
a taxpayer shall use for purposes of this section.
``(ii) <<NOTE: Petition. Determination.>>
Provisional emissions rate.--In the case of any
facility for which an emissions rate has not been
established by the Secretary, a taxpayer which
owns such facility may file a petition with the
Secretary for determination of the emissions rate
with respect to such facility.
``(D) Carbon capture and sequestration equipment.--
For purposes of this subsection, the amount of
greenhouse gases emitted into the atmosphere by a
facility in the production of electricity shall not
include any qualified carbon dioxide that is captured by
the taxpayer and--
``(i) pursuant to any regulations established
under paragraph (2) of section 45Q(f), disposed of
by the taxpayer in secure geological storage, or
``(ii) utilized by the taxpayer in a manner
described in paragraph (5) of such section.
``(c) Inflation Adjustment.--
``(1) <<NOTE: Effective date.>> In general.--In the case of
a calendar year beginning after 2024, the 0.3 cent amount in
paragraph (2)(A) of subsection (a) and the 1.5 cent amount in
paragraph (2)(B) of such subsection shall each be adjusted by
multiplying such amount by the inflation adjustment factor for
the calendar year in which the sale, consumption, or storage of
the electricity occurs. If the 0.3 cent amount as increased
under this paragraph is not a multiple of 0.05 cent, such amount
shall be rounded to the nearest multiple of 0.05 cent. If the
1.5 cent amount as increased under this paragraph is not a
multiple of 0.1 cent, such amount shall be rounded to the
nearest multiple of 0.1 cent.
``(2) <<NOTE: Deadline. Determination. Federal Register,
publication.>> Annual computation.--The Secretary shall, not
later than April 1 of each calendar year, determine and publish
in the Federal Register the inflation adjustment factor for such
calendar year in accordance with this subsection.
``(3) <<NOTE: Definitions.>> Inflation adjustment factor.--
The term `inflation adjustment factor' means, with respect to a
calendar year, a fraction the numerator of which is the GDP
implicit price deflator for the preceding calendar year and the
denominator of which is the GDP implicit price deflator for the
calendar year 1992. The term `GDP implicit price deflator' means
the most recent revision of the implicit price deflator for the
gross domestic product as computed and published by the
Department of Commerce before March 15 of the calendar year.
``(d) Credit Phase-out.--
``(1) In general.--The amount of the clean electricity
production credit under subsection (a) for any qualified
facility the construction of which begins during a calendar year
described in paragraph (2) shall be equal to the product of--
``(A) the amount of the credit determined under
subsection (a) without regard to this subsection,
multiplied by
``(B) the phase-out percentage under paragraph (2).
[[Page 136 STAT. 1985]]
``(2) Phase-out percentage.--The phase-out percentage under
this paragraph is equal to--
``(A) for a facility the construction of which
begins during the first calendar year following the
applicable year, 100 percent,
``(B) for a facility the construction of which
begins during the second calendar year following the
applicable year, 75 percent,
``(C) for a facility the construction of which
begins during the third calendar year following the
applicable year, 50 percent, and
``(D) for a facility the construction of which
begins during any calendar year subsequent to the
calendar year described in subparagraph (C), 0 percent.
``(3) <<NOTE: Definition.>> Applicable year.--For purposes
of this subsection, the term `applicable year' means the later
of--
``(A) <<NOTE: Determination.>> the calendar year in
which the Secretary determines that the annual
greenhouse gas emissions from the production of
electricity in the United States are equal to or less
than 25 percent of the annual greenhouse gas emissions
from the production of electricity in the United States
for calendar year 2022, or
``(B) 2032.
``(e) Definitions.--For purposes of this section:
``(1) CO<INF>2</INF>e per KWh.--The term `CO<INF>2</INF>e
per KWh' means, with respect to any greenhouse gas, the
equivalent carbon dioxide (as determined based on global warming
potential) per kilowatt hour of electricity produced.
``(2) Greenhouse gas.--The term `greenhouse gas' has the
same meaning given such term under section 211(o)(1)(G) of the
Clean Air Act (42 U.S.C. 7545(o)(1)(G)), as in effect on the
date of the enactment of this section.
``(3) Qualified carbon dioxide.--The term `qualified carbon
dioxide' means carbon dioxide captured from an industrial source
which--
``(A) would otherwise be released into the
atmosphere as industrial emission of greenhouse gas,
``(B) is measured at the source of capture and
verified at the point of disposal or utilization, and
``(C) is captured and disposed or utilized within
the United States (within the meaning of section 638(1))
or a possession of the United States (within the meaning
of section 638(2)).
``(f) <<NOTE: Deadline. Determination.>> Guidance.--Not later than
January 1, 2025, the Secretary shall issue guidance regarding
implementation of this section, including calculation of greenhouse gas
emission rates for qualified facilities and determination of clean
electricity production credits under this section.
``(g) Special Rules.--
``(1) Only production in the united states taken into
account.--Consumption, sales, or storage shall be taken into
account under this section only with respect to electricity the
production of which is within--
``(A) the United States (within the meaning of
section 638(1)), or
``(B) a possession of the United States (within the
meaning of section 638(2)).
[[Page 136 STAT. 1986]]
``(2) Combined heat and power system property.--
``(A) In general.--For purposes of subsection (a)--
``(i) the kilowatt hours of electricity
produced by a taxpayer at a qualified facility
shall include any production in the form of useful
thermal energy by any combined heat and power
system property within such facility, and
``(ii) the amount of greenhouse gases emitted
into the atmosphere by such facility in the
production of such useful thermal energy shall be
included for purposes of determining the
greenhouse gas emissions rate for such facility.
``(B) <<NOTE: Definition.>> Combined heat and power
system property.--For purposes of this paragraph, the
term `combined heat and power system property' has the
same meaning given such term by section 48(c)(3)
(without regard to subparagraphs (A)(iv), (B), and (D)
thereof).
``(C) Conversion from btu to kwh.--
``(i) In general.--For purposes of
subparagraph (A)(i), the amount of kilowatt hours
of electricity produced in the form of useful
thermal energy shall be equal to the quotient of--
``(I) the total useful thermal
energy produced by the combined heat and
power system property within the
qualified facility, divided by
``(II) the heat rate for such
facility.
``(ii) <<NOTE: Definition.>> Heat rate.--For
purposes of this subparagraph, the term `heat
rate' means the amount of energy used by the
qualified facility to generate 1 kilowatt hour of
electricity, expressed as British thermal units
per net kilowatt hour generated.
``(3) <<NOTE: Regulations.>> Production attributable to the
taxpayer.--In the case of a qualified facility in which more
than 1 person has an ownership interest, except to the extent
provided in regulations prescribed by the Secretary, production
from the facility shall be allocated among such persons in
proportion to their respective ownership interests in the gross
sales from such facility.
``(4) Related persons.--Persons shall be treated as related
to each other if such persons would be treated as a single
employer under the regulations prescribed under section 52(b).
In the case of a corporation which is a member of an affiliated
group of corporations filing a consolidated return, such
corporation shall be treated as selling electricity to an
unrelated person if such electricity is sold to such a person by
another member of such group.
``(5) <<NOTE: Regulations. Applicability.>> Pass-thru in
the case of estates and trusts.--Under regulations prescribed by
the Secretary, rules similar to the rules of subsection (d) of
section 52 shall apply.
``(6) Allocation of credit to patrons of agricultural
cooperative.--
``(A) Election to allocate.--
``(i) In general.--In the case of an eligible
cooperative organization, any portion of the
credit determined under subsection (a) for the
taxable year may, at the election of the
organization, be apportioned among patrons of the
organization on the basis of the amount
[[Page 136 STAT. 1987]]
of business done by the patrons during the taxable
year.
``(ii) Form and effect of election.--An
election under clause (i) for any taxable year
shall be made on a timely filed return for such
year. Such election, once made, shall be
irrevocable for such taxable year.
Such <<NOTE: Notice.>> election shall not take
effect unless the organization designates the
apportionment as such in a written notice mailed
to its patrons during the payment period described
in section 1382(d).
``(B) Treatment of organizations and patrons.--The
amount of the credit apportioned to any patrons under
subparagraph (A)--
``(i) shall not be included in the amount
determined under subsection (a) with respect to
the organization for the taxable year, and
``(ii) shall be included in the amount
determined under subsection (a) for the first
taxable year of each patron ending on or after the
last day of the payment period (as defined in
section 1382(d)) for the taxable year of the
organization or, if earlier, for the taxable year
of each patron ending on or after the date on
which the patron receives notice from the
cooperative of the apportionment.
``(C) Special rules for decrease in credits for
taxable year.--If the amount of the credit of a
cooperative organization determined under subsection (a)
for a taxable year is less than the amount of such
credit shown on the return of the cooperative
organization for such year, an amount equal to the
excess of--
``(i) such reduction, over
``(ii) the amount not apportioned to such
patrons under subparagraph (A) for the taxable
year,
shall be treated as an increase in tax imposed by this
chapter on the organization. Such increase shall not be
treated as tax imposed by this chapter for purposes of
determining the amount of any credit under this chapter.
``(D) Eligible cooperative defined.--For purposes of
this section, the term `eligible cooperative' means a
cooperative organization described in section 1381(a)
which is owned more than 50 percent by agricultural
producers or by entities owned by agricultural
producers. For this purpose an entity owned by an
agricultural producer is one that is more than 50
percent owned by agricultural producers.
``(7) <<NOTE: Determination.>> Increase in credit in energy
communities.--In the case of any qualified facility which is
located in an energy community (as defined in section
45(b)(11)(B)), for purposes of determining the amount of the
credit under subsection (a) with respect to any electricity
produced by the taxpayer at such facility during the taxable
year, the applicable amount under paragraph (2) of such
subsection shall be increased by an amount equal to 10 percent
of the amount otherwise in effect under such paragraph.
``(8) <<NOTE: Applicability.>> Credit reduced for tax-
exempt bonds.--Rules similar to the rules of section 45(b)(3)
shall apply.
[[Page 136 STAT. 1988]]
``(9) <<NOTE: Applicability.>> Wage requirements.--Rules
similar to the rules of section 45(b)(7) shall apply.
``(10) <<NOTE: Applicability.>> Apprenticeship
requirements.--Rules similar to the rules of section 45(b)(8)
shall apply.
``(11) Domestic content bonus credit amount.--
``(A) In general.--In the case of any qualified
facility which satisfies the requirement under
subparagraph (B)(i), the amount of the credit determined
under subsection (a) shall be increased by an amount
equal to 10 percent of the amount so determined (as
determined without application of paragraph (7)).
``(B) Requirement.--
``(i) <<NOTE: Certification.>> In general.--
The requirement described in this subclause is
satisfied with respect to any qualified facility
if the taxpayer certifies to the Secretary (at
such time, and in such form and manner, as the
Secretary may prescribe) that any steel, iron, or
manufactured product which is a component of such
facility (upon completion of construction) was
produced in the United States (as determined under
section 661 of title 49, Code of Federal
Regulations).
``(ii) <<NOTE: Applicability.>> Steel and
iron.--In the case of steel or iron, clause (i)
shall be applied in a manner consistent with
section 661.5 of title 49, Code of Federal
Regulations.
``(iii) Manufactured product.--For purposes of
clause (i), the manufactured products which are
components of a qualified facility upon completion
of construction shall be deemed to have been
produced in the United States if not less than the
adjusted percentage (as determined under
subparagraph (C)) of the total costs of all such
manufactured products of such facility are
attributable to manufactured products (including
components) which are mined, produced, or
manufactured in the United States.
``(C) <<NOTE: Effective dates.>> Adjusted
percentage.--
``(i) In general.--Subject to subclause (ii),
for purposes of subparagraph (B)(iii), the
adjusted percentage shall be--
``(I) in the case of a facility the
construction of which begins before
January 1, 2025, 40 percent,
``(II) in the case of a facility the
construction of which begins after
December 31, 2024, and before January 1,
2026, 45 percent,
``(III) in the case of a facility
the construction of which begins after
December 31, 2025, and before January 1,
2027, 50 percent, and
``(IV) in the case of a facility the
construction of which begins after
December 31, 2026, 55 percent.
``(ii) Offshore wind facility.--For purposes
of subparagraph (B)(iii), in the case of a
qualified facility which is an offshore wind
facility, the adjusted percentage shall be--
``(I) in the case of a facility the
construction of which begins before
January 1, 2025, 20 percent,
[[Page 136 STAT. 1989]]
``(II) in the case of a facility the
construction of which begins after
December 31, 2024, and before January 1,
2026, 27.5 percent,
``(III) in the case of a facility
the construction of which begins after
December 31, 2025, and before January 1,
2027, 35 percent,
``(IV) in the case of a facility the
construction of which begins after
December 31, 2026, and before January 1,
2028, 45 percent, and
``(V) in the case of a facility the
construction of which begins after
December 31, 2027, 55 percent.
``(12) Phaseout for elective payment.--
``(A) In general.--In the case of a taxpayer making
an election under section 6417 with respect to a credit
under this section, the amount of such credit shall be
replaced with--
``(i) the value of such credit (determined
without regard to this paragraph), multiplied by
``(ii) the applicable percentage.
``(B) 100 percent applicable percentage for certain
qualified facilities.--In the case of any qualified
facility--
``(i) which satisfies the requirements under
paragraph (11)(B), or
``(ii) with a maximum net output of less than
1 megawatt (as measured in alternating current),
the applicable percentage shall be 100 percent.
``(C) <<NOTE: Effective dates. Time periods.>>
Phased domestic content requirement.--Subject to
subparagraph (D), in the case of any qualified facility
which is not described in subparagraph (B), the
applicable percentage shall be--
``(i) if construction of such facility began
before January 1, 2024, 100 percent,
``(ii) if construction of such facility began
in calendar year 2024, 90 percent,
``(iii) if construction of such facility began
in calendar year 2025, 85 percent, and
``(iv) if construction of such facility began
after December 31, 2025, 0 percent.
``(D) Exception.--
``(i) In general.--For purposes of this
paragraph, the Secretary shall provide exceptions
to the requirements under this paragraph if--
``(I) the inclusion of steel, iron,
or manufactured products which are
produced in the United States increases
the overall costs of construction of
qualified facilities by more than 25
percent, or
``(II) relevant steel, iron, or
manufactured products are not produced
in the United States in sufficient and
reasonably available quantities or of a
satisfactory quality.
``(ii) Applicable percentage.--In any case in
which the Secretary provides an exception pursuant
to clause (i), the applicable percentage shall be
100 percent.''.
[[Page 136 STAT. 1990]]
(b) Conforming Amendments.--
(1) Section 38(b), as amended by the preceding provisions of
this Act, <<NOTE: 26 USC 38.>> is amended--
(A) in paragraph (37), by striking ``plus'' at the
end,
(B) in paragraph (38), by striking the period at the
end and inserting ``, plus'', and
(C) by adding at the end the following new
paragraph:
``(39) the clean electricity production credit determined
under section 45Y(a).''.
(2) The table of sections for subpart D of part IV of
subchapter A of chapter 1, as amended by the preceding
provisions of this Act, <<NOTE: 26 USC 38 prec.>> is amended by
adding at the end the following new item:
``Sec. 45Y. Clean electricity production credit.''.
(c) <<NOTE: 26 USC 45Y note.>> Effective Date.--The amendments made
by this section shall apply to facilities placed in service after
December 31, 2024.
SEC. 13702. CLEAN ELECTRICITY INVESTMENT CREDIT.
(a) In General.--Subpart E of part IV of subchapter A of chapter 1,
as amended by section 107(a) of the CHIPS Act of 2022, is amended by
inserting after section 48D the following new section:
``SEC. 48E. <<NOTE: 26 USC 48E.>> CLEAN ELECTRICITY INVESTMENT
CREDIT.
``(a) Investment Credit for Qualified Property.--
``(1) In general.--For purposes of section 46, the clean
electricity investment credit for any taxable year is an amount
equal to the applicable percentage of the qualified investment
for such taxable year with respect to--
``(A) any qualified facility, and
``(B) any energy storage technology.
``(2) Applicable percentage.--
``(A) Qualified facilities.--Subject to paragraph
(3)--
``(i) Base rate.--In the case of any qualified
facility which is not described in subclause (I)
or (II) of clause (ii) and does not satisfy the
requirements described in subclause (III) of such
clause, the applicable percentage shall be 6
percent.
``(ii) Alternative rate.--In the case of any
qualified facility--
``(I) with a maximum net output of
less than 1 megawatt (as measured in
alternating current),
``(II) <<NOTE: Time
period. Publication. Guidelines.>> the
construction of which begins prior to
the date that is 60 days after the
Secretary publishes guidance with
respect to the requirements of
paragraphs (3) and (4) of subsection
(d), or
``(III) which--
``(aa) satisfies the
requirements of subsection
(d)(3), and
``(bb) with respect to the
construction of such facility,
satisfies the requirements of
subsection (d)(4),
the applicable percentage shall be 30 percent.
``(B) Energy storage technology.--Subject to
paragraph (3)--
[[Page 136 STAT. 1991]]
``(i) Base rate.--In the case of any energy
storage technology which is not described in
subclause (I) or (II) of clause (ii) and does not
satisfy the requirements described in subclause
(III) of such clause, the applicable percentage
shall be 6 percent.
``(ii) Alternative rate.--In the case of any
energy storage technology--
``(I) with a capacity of less than 1
megawatt,
``(II) <<NOTE: Time
period. Publication. Guidelines.>> the
construction of which begins prior to
the date that is 60 days after the
Secretary publishes guidance with
respect to the requirements of
paragraphs (3) and (4) of subsection
(d), or
``(III) which--
``(aa) satisfies the
requirements of subsection
(d)(3), and
``(bb) with respect to the
construction of such property,
satisfies the requirements of
subsection (d)(4),
the applicable percentage shall be 30 percent.
``(3) Increase in credit rate in certain cases.--
``(A) Energy communities.--
``(i) In general.--In the case of any
qualified investment with respect to a qualified
facility or with respect to energy storage
technology which is placed in service within an
energy community (as defined in section
45(b)(11)(B)), for purposes of applying paragraph
(2) with respect to such property or investment,
the applicable percentage shall be increased by
the applicable credit rate increase.
``(ii) Applicable credit rate increase.--For
purposes of clause (i), the applicable credit rate
increase shall be an amount equal to--
``(I) in the case of any qualified
investment with respect to a qualified
facility described in paragraph
(2)(A)(i) or with respect to energy
storage technology described in
paragraph (2)(B)(i), 2 percentage
points, and
``(II) in the case of any qualified
investment with respect to a qualified
facility described in paragraph
(2)(A)(ii) or with respect to energy
storage technology described in
paragraph (2)(B)(ii), 10 percentage
points.
``(B) <<NOTE: Applicability.>> Domestic content.--
Rules similar to the rules of section 48(a)(12) shall
apply.
``(b) <<NOTE: Definitions.>> Qualified Investment With Respect to a
Qualified Facility.--
``(1) In general.--For purposes of subsection (a), the
qualified investment with respect to any qualified facility for
any taxable year is the sum of--
``(A) the basis of any qualified property placed in
service by the taxpayer during such taxable year which
is part of a qualified facility, plus
``(B) the amount of any expenditures which are--
``(i) paid or incurred by the taxpayer for
qualified interconnection property--
[[Page 136 STAT. 1992]]
``(I) in connection with a qualified
facility which has a maximum net output
of not greater than 5 megawatts (as
measured in alternating current), and
``(II) placed in service during the
taxable year of the taxpayer, and
``(ii) properly chargeable to capital account
of the taxpayer.
``(2) Qualified property.--For purposes of this section, the
term `qualified property' means property--
``(A) which is--
``(i) tangible personal property, or
``(ii) other tangible property (not including
a building or its structural components), but only
if such property is used as an integral part of
the qualified facility,
``(B) with respect to which depreciation (or
amortization in lieu of depreciation) is allowable, and
``(C)(i) the construction, reconstruction, or
erection of which is completed by the taxpayer, or
``(ii) which is acquired by the taxpayer if the
original use of such property commences with the
taxpayer.
``(3) Qualified facility.--
``(A) In general.--For purposes of this section, the
term `qualified facility' means a facility--
``(i) which is used for the generation of
electricity,
``(ii) which is placed in service after
December 31, 2024, and
``(iii) for which the anticipated greenhouse
gas emissions rate (as determined under
subparagraph (B)(ii)) is not greater than zero.
``(B) <<NOTE: Applicability.>> Additional rules.--
``(i) Expansion of facility; incremental
production.--Rules similar to the rules of section
45Y(b)(1)(C) shall apply for purposes of this
paragraph.
``(ii) Greenhouse gas emissions rate.--Rules
similar to the rules of section 45Y(b)(2) shall
apply for purposes of this paragraph.
``(C) Exclusion.--The term `qualified facility'
shall not include any facility for which--
``(i) a renewable electricity production
credit determined under section 45,
``(ii) an advanced nuclear power facility
production credit determined under section 45J,
``(iii) a carbon oxide sequestration credit
determined under section 45Q,
``(iv) a zero-emission nuclear power
production credit determined under section 45U,
``(v) a clean electricity production credit
determined under section 45Y,
``(vi) an energy credit determined under
section 48, or
``(vii) a qualifying advanced coal project
credit under section 48A,
is allowed under section 38 for the taxable year or any
prior taxable year.
[[Page 136 STAT. 1993]]
``(4) Qualified interconnection property.--For purposes of
this paragraph, the term `qualified interconnection property'
has the meaning given such term in section 48(a)(8)(B).
``(5) Coordination with rehabilitation credit.--The
qualified investment with respect to any qualified facility for
any taxable year shall not include that portion of the basis of
any property which is attributable to qualified rehabilitation
expenditures (as defined in section 47(c)(2)).
``(6) Definitions.--For purposes of this subsection, the
terms `CO2e per KWh' and `greenhouse gas emissions rate' have
the same meaning given such terms under section 45Y.
``(c) Qualified Investment With Respect to Energy Storage
Technology.--
``(1) Qualified investment.--For purposes of subsection (a),
the qualified investment with respect to energy storage
technology for any taxable year is the basis of any energy
storage technology placed in service by the taxpayer during such
taxable year.
``(2) <<NOTE: Definition.>> Energy storage technology.--For
purposes of this section, the term `energy storage technology'
has the meaning given such term in section 48(c)(6) (except that
subparagraph (D) of such section shall not apply).
``(d) <<NOTE: Applicability.>> Special Rules.--
``(1) Certain progress expenditure rules made applicable.--
Rules similar to the rules of subsections (c)(4) and (d) of
section 46 (as in effect on the day before the date of the
enactment of the Revenue Reconciliation Act of 1990) shall apply
for purposes of subsection (a).
``(2) Special rule for property financed by subsidized
energy financing or private activity bonds.--Rules similar to
the rules of section 45(b)(3) shall apply.
``(3) Prevailing wage requirements.--Rules similar to the
rules of section 48(a)(10) shall apply.
``(4) Apprenticeship requirements.--Rules similar to the
rules of section 45(b)(8) shall apply.
``(5) Domestic content requirement for elective payment.--In
the case of a taxpayer making an election under section 6417
with respect to a credit under this section, rules similar to
the rules of section 45Y(g)(12) shall apply.
``(e) Credit Phase-Out.--
``(1) In general.--The amount of the clean electricity
investment credit under subsection (a) for any qualified
investment with respect to any qualified facility or energy
storage technology the construction of which begins during a
calendar year described in paragraph (2) shall be equal to the
product of--
``(A) the amount of the credit determined under
subsection (a) without regard to this subsection,
multiplied by
``(B) the phase-out percentage under paragraph (2).
``(2) Phase-out percentage.--The phase-out percentage under
this paragraph is equal to--
``(A) for any qualified investment with respect to
any qualified facility or energy storage technology the
construction of which begins during the first calendar
year following the applicable year, 100 percent,
[[Page 136 STAT. 1994]]
``(B) for any qualified investment with respect to
any qualified facility or energy storage technology the
construction of which begins during the second calendar
year following the applicable year, 75 percent,
``(C) for any qualified investment with respect to
any qualified facility or energy storage technology the
construction of which begins during the third calendar
year following the applicable year, 50 percent, and
``(D) for any qualified investment with respect to
any qualified facility or energy storage technology the
construction of which begins during any calendar year
subsequent to the calendar year described in
subparagraph (C), 0 percent.
``(3) <<NOTE: Definition.>> Applicable year.--For purposes
of this subsection, the term `applicable year' has the same
meaning given such term in section 45Y(d)(3).
``(f) <<NOTE: Definition.>> Greenhouse Gas.--In this section, the
term `greenhouse gas' has the same meaning given such term under section
45Y(e)(2).
``(g) Recapture of Credit.--For purposes of section 50, if the
Secretary determines that the greenhouse gas emissions rate for a
qualified facility is greater than 10 grams of CO<INF>2</INF>e per KWh,
any property for which a credit was allowed under this section with
respect to such facility shall cease to be investment credit property in
the taxable year in which the determination is made.
``(h) <<NOTE: Definitions.>> Special Rules for Certain Facilities
Placed in Service in Connection With Low-income Communities.--
``(1) In general.--In the case of any applicable facility
with respect to which the Secretary makes an allocation of
environmental justice capacity limitation under paragraph (4)--
``(A) the applicable percentage otherwise determined
under subsection (a)(2) with respect to any eligible
property which is part of such facility shall be
increased by--
``(i) in the case of a facility described in
subclause (I) of paragraph (2)(A)(iii) and not
described in subclause (II) of such paragraph, 10
percentage points, and
``(ii) in the case of a facility described in
subclause (II) of paragraph (2)(A)(iii), 20
percentage points, and
``(B) the increase in the credit determined under
subsection (a) by reason of this subsection for any
taxable year with respect to all property which is part
of such facility shall not exceed the amount which bears
the same ratio to the amount of such increase
(determined without regard to this subparagraph) as--
``(i) the environmental justice capacity
limitation allocated to such facility, bears to
``(ii) the total megawatt nameplate capacity
of such facility, as measured in direct current.
``(2) Applicable facility.--For purposes of this
subsection--
``(A) In general.--The term `applicable facility'
means any qualified facility--
``(i) which is not described in section
45Y(b)(2)(B),
``(ii) which has a maximum net output of less
than 5 megawatts (as measured in alternating
current), and
``(iii) which--
[[Page 136 STAT. 1995]]
``(I) is located in a low-income
community (as defined in section 45D(e))
or on Indian land (as defined in section
2601(2) of the Energy Policy Act of 1992
(25 U.S.C. 3501(2))), or
``(II) is part of a qualified low-
income residential building project or a
qualified low-income economic benefit
project.
``(B) Qualified low-income residential building
project.--A facility shall be treated as part of a
qualified low-income residential building project if--
``(i) such facility is installed on a
residential rental building which participates in
a covered housing program (as defined in section
41411(a) of the Violence Against Women Act of 1994
(34 U.S.C. 12491(a)(3)), a housing assistance
program administered by the Department of
Agriculture under title V of the Housing Act of
1949, a housing program administered by a tribally
designated housing entity (as defined in section
4(22) of the Native American Housing Assistance
and Self-Determination Act of 1996 (25 U.S.C.
4103(22))) or such other affordable housing
programs as the Secretary may provide, and
``(ii) the financial benefits of the
electricity produced by such facility are
allocated equitably among the occupants of the
dwelling units of such building.
``(C) Qualified low-income economic benefit
project.--A facility shall be treated as part of a
qualified low-income economic benefit project if at
least 50 percent of the financial benefits of the
electricity produced by such facility are provided to
households with income of--
``(i) less than 200 percent of the poverty
line (as defined in section 36B(d)(3)(A))
applicable to a family of the size involved, or
``(ii) less than 80 percent of area median
gross income (as determined under section
142(d)(2)(B)).
``(D) Financial benefit.--For purposes of
subparagraphs (B) and (C), electricity acquired at a
below-market rate shall not fail to be taken into
account as a financial benefit.
``(3) Eligible property.--For purposes of this subsection,
the term `eligible property' means a qualified investment with
respect to any applicable facility.
``(4) Allocations.--
``(A) <<NOTE: Deadline.>> In general.--Not later
than January 1, 2025, the Secretary shall establish a
program to allocate amounts of environmental justice
capacity limitation to applicable facilities. In
establishing <<NOTE: Procedures.>> such program and to
carry out the purposes of this subsection, the Secretary
shall provide procedures to allow for an efficient
allocation process, including, when determined
appropriate, consideration of multiple projects in a
single application if such projects will be placed in
service by a single taxpayer.
``(B) Limitation.--The amount of environmental
justice capacity limitation allocated by the Secretary
under subparagraph (A) during any calendar year shall
not exceed the annual capacity limitation with respect
to such year.
[[Page 136 STAT. 1996]]
``(C) <<NOTE: Time period.>> Annual capacity
limitation.--For purposes of this paragraph, the term
`annual capacity limitation' means 1.8 gigawatts of
direct current capacity for each calendar year during
the period beginning on January 1, 2025, and ending on
December 31 of the applicable year (as defined in
section 45Y(d)(3)), and zero thereafter.
``(D) Carryover of unused limitation.--
``(i) In general.--If the annual capacity
limitation for any calendar year exceeds the
aggregate amount allocated for such year under
this paragraph, such limitation for the succeeding
calendar year shall be increased by the amount of
such excess. No amount may be carried under the
preceding sentence to any calendar year after the
third calendar year following the applicable year
(as defined in section 45Y(d)(3)).
``(ii) Carryover from section 48 for calendar
year 2025.--If the annual capacity limitation for
calendar year 2024 under section 48(e)(4)(D)
exceeds the aggregate amount allocated for such
year under such section, such excess amount may be
carried over and applied to the annual capacity
limitation under this subsection for calendar year
2025. The annual capacity limitation for calendar
year 2025 shall be increased by the amount of such
excess.
``(E) Placed in service deadline.--
``(i) In general.--Paragraph (1) shall not
apply with respect to any property which is placed
in service after the date that is 4 years after
the date of the allocation with respect to the
facility of which such property is a part.
``(ii) Application of carryover.--Any amount
of environmental justice capacity limitation which
expires under clause (i) during any calendar year
shall be taken into account as an excess described
in subparagraph (D)(i) (or as an increase in such
excess) for such calendar year, subject to the
limitation imposed by the last sentence of such
subparagraph.
``(5) <<NOTE: Regulations. Guidelines.>> Recapture.--The
Secretary shall, by regulations or other guidance, provide for
recapturing the benefit of any increase in the credit allowed
under subsection (a) by reason of this subsection with respect
to any property which ceases to be property eligible for such
increase (but which does not cease to be investment credit
property within the meaning of section
50(a)). <<NOTE: Determination.>> The period and percentage of
such recapture shall be determined under rules similar to the
rules of section 50(a). To the extent <<NOTE: Time period.>>
provided by the Secretary, such recapture may not apply with
respect to any property if, within 12 months after the date the
taxpayer becomes aware (or reasonably should have become aware)
of such property ceasing to be property eligible for such
increase, the eligibility of such property for such increase is
restored. The preceding sentence shall not apply more than once
with respect to any facility.
``(i) <<NOTE: Deadline.>> Guidance.--Not later than January 1,
2025, the Secretary shall issue guidance regarding implementation of
this section.''.
(b) Conforming Amendments.--
(1) Section 46, as amended by section 107(d) of the CHIPS
Act of 2022, <<NOTE: 26 USC 46.>> is amended--
[[Page 136 STAT. 1997]]
(A) in paragraph (5), by striking ``and'' at the
end,
(B) in paragraph (6), by striking the period at the
end and inserting ``, and'', and
(C) by adding at the end the following:
``(7) the clean electricity investment credit.''.
(2) Section 49(a)(1)(C), as amended by section 107(d) of the
CHIPS Act of 2022, <<NOTE: 26 USC 49.>> is amended--
(A) by striking ``and'' at the end of clause (v),
(B) by striking the period at the end of clause (vi)
and inserting a comma, and
(C) by adding at the end the following new clauses:
``(vii) the basis of any qualified property
which is part of a qualified facility under
section 48E, and
``(viii) the basis of any energy storage
technology under section 48E.''.
(3) Section 50(a)(2)(E), as amended by section 107(d) of the
CHIPS Act of 2022, <<NOTE: 26 USC 50.>> is amended by striking
``or 48D(b)(5)'' and inserting ``48D(b)(5), or 48E(e)''.
(4) Section 50(c)(3) is amended by inserting ``or clean
electricity investment credit'' after ``In the case of any
energy credit''.
(5) The table of sections for subpart E of part IV of
subchapter A of chapter 1, as amended by section 107(d) of the
CHIPS Act of 2022, <<NOTE: 26 USC 46 prec.>> is amended by
inserting after the item relating to section 48D the following
new item:
``48E. Clean electricity investment credit.''.
(c) <<NOTE: 26 USC 48E note.>> Effective Date.--The amendments made
by this section shall apply to property placed in service after December
31, 2024.
SEC. 13703. COST RECOVERY FOR QUALIFIED FACILITIES, QUALIFIED
PROPERTY, AND ENERGY STORAGE
TECHNOLOGY.
(a) <<NOTE: 26 USC 168.>> In General.--Section 168(e)(3)(B) is
amended--
(1) in clause (vi)(III), by striking ``and'' at the end,
(2) in clause (vii), by striking the period at the end and
inserting ``, and'', and
(3) by inserting after clause (vii) the following:
``(viii) any qualified facility (as defined in
section 45Y(b)(1)(A)), any qualified property (as
defined in subsection (b)(2) of section 48E) which
is a qualified investment (as defined in
subsection (b)(1) of such section), or any energy
storage technology (as defined in subsection
(c)(2) of such section).''.
(b) <<NOTE: 26 USC 168 note.>> Effective Date.--The amendments made
by this section shall apply to facilities and property placed in service
after December 31, 2024.
SEC. 13704. CLEAN FUEL PRODUCTION CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1,
as amended by the preceding provisions of this Act, is amended by adding
at the end the following new section:
``SEC. 45Z. <<NOTE: 26 USC 45Z.>> CLEAN FUEL PRODUCTION CREDIT.
``(a) Amount of Credit.--
``(1) In general.--For purposes of section 38, the clean
fuel production credit for any taxable year is an amount equal
to the product of--
[[Page 136 STAT. 1998]]
``(A) the applicable amount per gallon (or gallon
equivalent) with respect to any transportation fuel
which is--
``(i) produced by the taxpayer at a qualified
facility, and
``(ii) sold by the taxpayer in a manner
described in paragraph (4) during the taxable
year, and
``(B) the emissions factor for such fuel (as
determined under subsection (b)).
``(2) Applicable amount.--
``(A) Base amount.--In the case of any
transportation fuel produced at a qualified facility
which does not satisfy the requirements described in
subparagraph (B), the applicable amount shall be 20
cents.
``(B) Alternative amount.--In the case of any
transportation fuel produced at a qualified facility
which satisfies the requirements under paragraphs (6)
and (7) of subsection (f), the applicable amount shall
be $1.00.
``(3) Special rate for sustainable aviation fuel.--
``(A) In general.--In the case of a transportation
fuel which is sustainable aviation fuel, paragraph (2)
shall be applied--
``(i) in the case of fuel produced at a
qualified facility described in paragraph (2)(A),
by substituting `35 cents' for `20 cents', and
``(ii) in the case of fuel produced at a
qualified facility described in paragraph (2)(B),
by substituting `$1.75' for `$1.00'.
``(B) <<NOTE: Definition.>> Sustainable aviation
fuel.--For purposes of this subparagraph (A), the term
`sustainable aviation fuel' means liquid fuel, the
portion of which is not kerosene, which is sold for use
in an aircraft and which--
``(i) meets the requirements of--
``(I) ASTM International Standard
D7566, or
``(II) the Fischer Tropsch
provisions of ASTM International
Standard D1655, Annex A1, and
``(ii) is not derived from palm fatty acid
distillates or petroleum.
``(4) Sale.--For purposes of paragraph (1), the
transportation fuel is sold in a manner described in this
paragraph if such fuel is sold by the taxpayer to an unrelated
person--
``(A) for use by such person in the production of a
fuel mixture,
``(B) for use by such person in a trade or business,
or
``(C) who sells such fuel at retail to another
person and places such fuel in the fuel tank of such
other person.
``(5) Rounding.--If any amount determined under paragraph
(1) is not a multiple of 1 cent, such amount shall be rounded to
the nearest cent.
``(b) Emissions Factors.--
``(1) <<NOTE: Determinations.>> Emissions factor.--
``(A) Calculation.--
``(i) In general.--The emissions factor of a
transportation fuel shall be an amount equal to
the quotient of--
``(I) an amount equal to--
[[Page 136 STAT. 1999]]
``(aa) 50 kilograms of
CO<INF>2</INF>e per mmBTU, minus
``(bb) the emissions rate
for such fuel, divided by
``(II) 50 kilograms of
CO<INF>2</INF>e per mmBTU.
``(B) Establishment of emissions rate.--
``(i) <<NOTE: Publication.>> In general.--
Subject to clauses (ii) and (iii), the Secretary
shall annually publish a table which sets forth
the emissions rate for similar types and
categories of transportation fuels based on the
amount of lifecycle greenhouse gas emissions (as
described in section 211(o)(1)(H) of the Clean Air
Act (42 U.S.C. 7545(o)(1)(H)), as in effect on the
date of the enactment of this section) for such
fuels, expressed as kilograms of CO<INF>2</INF>e
per mmBTU, which a taxpayer shall use for purposes
of this section.
``(ii) Non-aviation fuel.--In the case of any
transportation fuel which is not a sustainable
aviation fuel, the lifecycle greenhouse gas
emissions of such fuel shall be based on the most
recent determinations under the Greenhouse gases,
Regulated Emissions, and Energy use in
Transportation model developed by Argonne National
Laboratory, or a successor model (as determined by
the Secretary).
``(iii) Aviation fuel.--In the case of any
transportation fuel which is a sustainable
aviation fuel, the lifecycle greenhouse gas
emissions of such fuel shall be determined in
accordance with--
``(I) the most recent Carbon
Offsetting and Reduction Scheme for
International Aviation which has been
adopted by the International Civil
Aviation Organization with the agreement
of the United States, or
``(II) any similar methodology which
satisfies the criteria under section
211(o)(1)(H) of the Clean Air Act (42
U.S.C. 7545(o)(1)(H)), as in effect on
the date of enactment of this section.
``(C) Rounding of emissions rate.--
``(i) In general.--Subject to clause (ii), the
Secretary may round the emissions rates under
subparagraph (B) to the nearest multiple of 5
kilograms of CO<INF>2</INF>e per mmBTU.
``(ii) Exception.--In the case of an emissions
rate that is between 2.5 kilograms of
CO<INF>2</INF>e per mmBTU and -2.5 kilograms of
CO<INF>2</INF>e per mmBTU, the Secretary may round
such rate to zero.
``(D) Provisional emissions rate.--In the case of
any transportation fuel for which an emissions rate has
not been established under subparagraph (B), a taxpayer
producing such fuel may file a petition with the
Secretary for determination of the emissions rate with
respect to such fuel.
``(2) Rounding.--If any amount determined under paragraph
(1)(A) is not a multiple of 0.1, such amount shall be rounded to
the nearest multiple of 0.1.
``(c) Inflation Adjustment.--
[[Page 136 STAT. 2000]]
``(1) <<NOTE: Effective date.>> In general.--In the case of
calendar years beginning after 2024, the 20 cent amount in
subsection (a)(2)(A), the $1.00 amount in subsection (a)(2)(B),
the 35 cent amount in subsection (a)(3)(A)(i), and the $1.75
amount in subsection (a)(3)(A)(ii) shall each be adjusted by
multiplying such amount by the inflation adjustment factor for
the calendar year in which the sale of the transportation fuel
occurs. If any amount as increased under the preceding sentence
is not a multiple of 1 cent, such amount shall be rounded to the
nearest multiple of 1 cent.
``(2) <<NOTE: Determination. Publication.>> Inflation
adjustment factor.--For purposes of paragraph (1), the inflation
adjustment factor shall be the inflation adjustment factor
determined and published by the Secretary pursuant to section
45Y(c), determined by substituting `calendar year 2022' for
`calendar year 1992' in paragraph (3) thereof.
``(d) Definitions.--In this section:
``(1) mmBTU.--The term `mmBTU' means 1,000,000 British
thermal units.
``(2) CO<INF>2</INF>e.--The term `CO<INF>2</INF>e' means,
with respect to any greenhouse gas, the equivalent carbon
dioxide (as determined based on relative global warming
potential).
``(3) Greenhouse gas.--The term `greenhouse gas' has the
same meaning given that term under section 211(o)(1)(G) of the
Clean Air Act (42 U.S.C. 7545(o)(1)(G)), as in effect on the
date of the enactment of this section.
``(4) Qualified facility.--The term `qualified facility'--
``(A) means a facility used for the production of
transportation fuels, and
``(B) does not include any facility for which one of
the following credits is allowed under section 38 for
the taxable year:
``(i) The credit for production of clean
hydrogen under section 45V.
``(ii) The credit determined under section 46
to the extent that such credit is attributable to
the energy credit determined under section 48 with
respect to any specified clean hydrogen production
facility for which an election is made under
subsection (a)(15) of such section.
``(iii) The credit for carbon oxide
sequestration under section 45Q.
``(5) Transportation fuel.--
``(A) In general.--The term `transportation fuel'
means a fuel which--
``(i) is suitable for use as a fuel in a
highway vehicle or aircraft,
``(ii) has an emissions rate which is not
greater than 50 kilograms of CO<INF>2</INF>e per
mmBTU, and
``(iii) is not derived from coprocessing an
applicable material (or materials derived from an
applicable material) with a feedstock which is not
biomass.
``(B) Definitions.--In this paragraph--
``(i) Applicable material.--The term
`applicable material' means--
``(I) monoglycerides, diglycerides,
and triglycerides,
``(II) free fatty acids, and
[[Page 136 STAT. 2001]]
``(III) fatty acid esters.
``(ii) Biomass.--The term `biomass' has the
same meaning given such term in section 45K(c)(3).
``(e) <<NOTE: Deadline. Determination.>> Guidance.--Not later than
January 1, 2025, the Secretary shall issue guidance regarding
implementation of this section, including calculation of emissions
factors for transportation fuel, the table described in subsection
(b)(1)(B)(i), and the determination of clean fuel production credits
under this section.
``(f) <<NOTE: Applicability.>> Special Rules.--
``(1) Only registered production in the united states taken
into account.--
``(A) In general.--No clean fuel production credit
shall be determined under subsection (a) with respect to
any transportation fuel unless--
``(i) the taxpayer--
``(I) is registered as a producer of
clean fuel under section 4101 at the
time of production, and
``(II) in the case of any
transportation fuel which is a
sustainable aviation fuel, provides--
``(aa) <<NOTE: Certification.>>
certification (in such form and
manner as the Secretary shall
prescribe) from an unrelated
party demonstrating compliance
with--
``(AA) any general
requirements, supply chain
traceability requirements,
and information transmission
requirements established
under the Carbon Offsetting
and Reduction Scheme for
International Aviation
described in subclause (I)
of subsection
(b)(1)(B)(iii), or
``(BB) in the case of
any methodology described in
subclause (II) of such
subsection, requirements
similar to the requirements
described in subitem (AA),
and
``(bb) such other
information with respect to such
fuel as the Secretary may
require for purposes of carrying
out this section, and
``(ii) such fuel is produced in the United
States.
``(B) <<NOTE: Definition.>> United states.--For
purposes of this paragraph, the term `United States'
includes any possession of the United States.
``(2) Production attributable to the taxpayer.--In the case
of a facility in which more than 1 person has an ownership
interest, except to the extent provided in regulations
prescribed by the Secretary, production from the facility shall
be allocated among such persons in proportion to their
respective ownership interests in the gross sales from such
facility.
``(3) Related persons.--Persons shall be treated as related
to each other if such persons would be treated as a single
employer under the regulations prescribed under section 52(b).
In the case of a corporation which is a member of an affiliated
group of corporations filing a consolidated return, such
corporation shall be treated as selling fuel to an unrelated
person if such fuel is sold to such a person by another member
of such group.
[[Page 136 STAT. 2002]]
``(4) Pass-thru in the case of estates and trusts.--Under
regulations prescribed by the Secretary, rules similar to the
rules of subsection (d) of section 52 shall apply.
``(5) Allocation of credit to patrons of agricultural
cooperative.--Rules similar to the rules of section 45Y(g)(6)
shall apply.
``(6) Prevailing wage requirements.--
``(A) In general.--Subject to subparagraph (B),
rules similar to the rules of section 45(b)(7) shall
apply.
``(B) Special rule for facilities placed in service
before january 1, 2025.--For purposes of subparagraph
(A), in the case of any qualified facility placed in
service before January 1, 2025--
``(i) clause (i) of section 45(b)(7)(A) shall
not apply, and
``(ii) clause (ii) of such section shall be
applied by substituting `with respect to any
taxable year beginning after December 31, 2024,
for which the credit is allowed under this
section' for `with respect to any taxable year,
for any portion of such taxable year which is
within the period described in subsection
(a)(2)(A)(ii)'.
``(7) Apprenticeship requirements.--Rules similar to the
rules of section 45(b)(8) shall apply.
``(g) Termination.--This section shall not apply to transportation
fuel sold after December 31, 2027.''.
(b) Conforming Amendments.--
(1) Section 25C(d)(3), as amended by the preceding
provisions of this Act, <<NOTE: 26 USC 25.>> is amended--
(A) in subparagraph (A), by striking ``and'' at the
end,
(B) in subparagraph (B), by striking the period at
the end and inserting ``, and'', and
(C) by adding at the end the following new
subparagraph:
``(C) transportation fuel (as defined in section
45Z(d)(5)).''.
(2) Section 30C(c)(1)(B), as amended by the preceding
provisions of this Act, is amended by adding at the end the
following new clause:
``(iv) Any transportation fuel (as defined in
section 45Z(d)(5)).''.
(3) Section 38(b), as amended by the preceding provisions of
this Act, is amended--
(A) in paragraph (38), by striking ``plus'' at the
end,
(B) in paragraph (39), by striking the period at the
end and inserting ``, plus'', and
(C) by adding at the end the following new
paragraph:
``(40) the clean fuel production credit determined under
section 45Z(a).''.
(4) The table of sections for subpart D of part IV of
subchapter A of chapter 1, as amended by the preceding
provisions of this Act, <<NOTE: 26 USC 38 prec.>> is amended by
adding at the end the following new item:
``Sec. 45Z. Clean fuel production credit.''.
[[Page 136 STAT. 2003]]
(5) Section 4101(a)(1), as amended by the preceding
provisions of this Act, <<NOTE: 26 USC 4101.>> is amended by
inserting ``every person producing a fuel eligible for the clean
fuel production credit (pursuant to section 45Z),'' after
``section 6426(k)(3)),''.
(c) <<NOTE: 26 USC 45Z note.>> Effective Date.--The amendments made
by this section shall apply to transportation fuel produced after
December 31, 2024.
PART 8--CREDIT MONETIZATION AND APPROPRIATIONS
SEC. 13801. ELECTIVE PAYMENT FOR ENERGY PROPERTY AND ELECTRICITY
PRODUCED FROM CERTAIN RENEWABLE
RESOURCES, ETC.
(a) In General.--Subchapter B of chapter 65 is amended by inserting
after section 6416 the following new section:
``SEC. 6417. <<NOTE: 26 USC 6417.>> ELECTIVE PAYMENT OF
APPLICABLE CREDITS.
``(a) In General.--In the case of an applicable entity making an
election (at such time and in such manner as the Secretary may provide)
under this section with respect to any applicable credit determined with
respect to such entity, such entity shall be treated as making a payment
against the tax imposed by subtitle A (for the taxable year with respect
to which such credit was determined) equal to the amount of such credit.
``(b) <<NOTE: Definition.>> Applicable Credit.--The term
`applicable credit' means each of the following:
``(1) So much of the credit for alternative fuel vehicle
refueling property allowed under section 30C which, pursuant to
subsection (d)(1) of such section, is treated as a credit listed
in section 38(b).
``(2) So much of the renewable electricity production credit
determined under section 45(a) as is attributable to qualified
facilities which are originally placed in service after December
31, 2022.
``(3) So much of the credit for carbon oxide sequestration
determined under section 45Q(a) as is attributable to carbon
capture equipment which is originally placed in service after
December 31, 2022.
``(4) The zero-emission nuclear power production credit
determined under section 45U(a).
``(5) So much of the credit for production of clean hydrogen
determined under section 45V(a) as is attributable to qualified
clean hydrogen production facilities which are originally placed
in service after December 31, 2012.
``(6) In the case of a tax-exempt entity described in clause
(i), (ii), or (iv) of section 168(h)(2)(A), the credit for
qualified commercial vehicles determined under section 45W by
reason of subsection (d)(3) thereof.
``(7) The credit for advanced manufacturing production under
section 45X(a).
``(8) The clean electricity production credit determined
under section 45Y(a).
``(9) The clean fuel production credit determined under
section 45Z(a).
``(10) The energy credit determined under section 48.
[[Page 136 STAT. 2004]]
``(11) The qualifying advanced energy project credit
determined under section 48C.
``(12) The clean electricity investment credit determined
under section 48E.
``(c) Application to Partnerships and S Corporations.--
``(1) In general.--In the case of any applicable credit
determined with respect to any facility or property held
directly by a partnership or S corporation, any election under
subsection (a) shall be made by such partnership or S
corporation. If such partnership or S corporation makes an
election under such subsection (in such manner as the Secretary
may provide) with respect to such credit--
``(A) the Secretary shall make a payment to such
partnership or S corporation equal to the amount of such
credit,
``(B) subsection (e) shall be applied with respect
to such credit before determining any partner's
distributive share, or shareholder's pro rata share, of
such credit,
``(C) any amount with respect to which the election
in subsection (a) is made shall be treated as tax exempt
income for purposes of sections 705 and 1366, and
``(D) a partner's distributive share of such tax
exempt income shall be based on such partner's
distributive share of the otherwise applicable credit
for each taxable year.
``(2) Coordination with application at partner or
shareholder level.--In the case of any facility or property held
directly by a partnership or S corporation, no election by any
partner or shareholder shall be allowed under subsection (a)
with respect to any applicable credit determined with respect to
such facility or property.
``(3) Treatment of payments to partnerships and s
corporations.--For purposes of section 1324 of title 31, United
States Code, the payments under paragraph (1)(A) shall be
treated in the same manner as a refund due from a credit
provision referred to in subsection (b)(2) of such section.
``(d) Special Rules.--For purposes of this section--
``(1) <<NOTE: Definition. Effective dates.>> Applicable
entity.--
``(A) In general.--The term `applicable entity'
means--
``(i) any organization exempt from the tax
imposed by subtitle A,
``(ii) any State or political subdivision
thereof,
``(iii) the Tennessee Valley Authority,
``(iv) an Indian tribal government (as defined
in section 30D(g)(9)),
``(v) any Alaska Native Corporation (as
defined in section 3 of the Alaska Native Claims
Settlement Act (43 U.S.C. 1602(m)), or
``(vi) any corporation operating on a
cooperative basis which is engaged in furnishing
electric energy to persons in rural areas.
``(B) Election with respect to credit for production
of clean hydrogen.--If a taxpayer other than an entity
described in subparagraph (A) makes an election under
this subparagraph with respect to any taxable year in
which such taxpayer has placed in service a qualified
clean hydrogen production facility (as defined in
section 45V(c)(3)), such taxpayer shall be treated as an
applicable entity for purposes of this section for such
taxable year,
[[Page 136 STAT. 2005]]
but only with respect to the credit described in
subsection (b)(5).
``(C) Election with respect to credit for carbon
oxide sequestration.--If a taxpayer other than an entity
described in subparagraph (A) makes an election under
this subparagraph with respect to any taxable year in
which such taxpayer has, after December 31, 2022, placed
in service carbon capture equipment at a qualified
facility (as defined in section 45Q(d)), such taxpayer
shall be treated as an applicable entity for purposes of
this section for such taxable year, but only with
respect to the credit described in subsection (b)(3).
``(D) Election with respect to advanced
manufacturing production credit.--
``(i) In general.--If a taxpayer other than an
entity described in subparagraph (A) makes an
election under this subparagraph with respect to
any taxable year in which such taxpayer has, after
December 31, 2022, produced eligible components
(as defined in section 45X(c)(1)), such taxpayer
shall be treated as an applicable entity for
purposes of this section for such taxable year,
but only with respect to the credit described in
subsection (b)(7).
``(ii) Limitation.--
``(I) In general.--Except as
provided in subclause (II), if a
taxpayer makes an election under this
subparagraph with respect to any taxable
year, such taxpayer shall be treated as
having made such election for each of
the 4 succeeding taxable years ending
before January 1, 2033.
``(II) Exception.--A taxpayer may
elect to revoke the application of the
election made under this subparagraph to
any taxable year described in subclause
(I). Any such election, if made, shall
apply to the applicable year specified
in such election and each subsequent
taxable year within the period described
in subclause (I). Any election under
this subclause may not be subsequently
revoked.
``(iii) Prohibition on transfer.--For any
taxable year described in clause (ii)(I), no
election may be made by the taxpayer under section
6418(a) for such taxable year with respect to
eligible components for purposes of the credit
described in subsection (b)(7).
``(E) Other rules.--
``(i) In general.--An election made under
subparagraph (B), (C), or (D) shall be made at
such time and in such manner as the Secretary may
provide.
``(ii) <<NOTE: Effective date.>>
Limitation.--No election may be made under
subparagraph (B), (C), or (D) with respect to any
taxable year beginning after December 31, 2032.
``(2) <<NOTE: Determination.>> Application.--In the case of
any applicable entity which makes the election described in
subsection (a), any applicable credit shall be determined--
``(A) without regard to paragraphs (3) and (4)(A)(i)
of section 50(b), and
[[Page 136 STAT. 2006]]
``(B) by treating any property with respect to which
such credit is determined as used in a trade or business
of the applicable entity.
``(3) Elections.--
``(A) In general.--
``(i) Due date.--Any election under subsection
(a) shall be made not later than--
``(I) in the case of any government,
or political subdivision, described in
paragraph (1) and for which no return is
required under section 6011 or 6033(a),
such date as is determined appropriate
by the Secretary, or
``(II) in any other case, the due
date (including extensions of time) for
the return of tax for the taxable year
for which the election is made, but in
no event earlier than 180 days after the
date of the enactment of this section.
``(ii) <<NOTE: Applicability.>> Additional
rules.--Any election under subsection (a), once
made, shall be irrevocable and shall apply (except
as otherwise provided in this paragraph) with
respect to any credit for the taxable year for
which the election is made.
``(B) <<NOTE: Applicability.>> Renewable
electricity production credit.--In the case of the
credit described in subsection (b)(2), any election
under subsection (a) shall--
``(i) apply separately with respect to each
qualified facility,
``(ii) be made for the taxable year in which
such qualified facility is originally placed in
service, and
``(iii) shall apply to such taxable year and
to any subsequent taxable year which is within the
period described in subsection (a)(2)(A)(ii) of
section 45 with respect to such qualified
facility.
``(C) Credit for carbon oxide sequestration.--
``(i) <<NOTE: Applicability.>> In general.--
In the case of the credit described in subsection
(b)(3), any election under subsection (a) shall--
``(I) apply separately with respect
to the carbon capture equipment
originally placed in service by the
applicable entity during a taxable year,
and
``(II)(aa) <<NOTE: Time period.>>
in the case of a taxpayer who makes an
election described in paragraph (1)(C),
apply to the taxable year in which such
equipment is placed in service and the 4
subsequent taxable years with respect to
such equipment which end before January
1, 2033, and
``(bb) in any other case, apply to
such taxable year and to any subsequent
taxable year which is within the period
described in paragraph (3)(A) or (4)(A)
of section 45Q(a) with respect to such
equipment.
``(ii) Prohibition on transfer.--For any
taxable year described in clause (i)(II)(aa) with
respect to carbon capture equipment, no election
may be made by the taxpayer under section 6418(a)
for such taxable year with respect to such
equipment for purposes of the credit described in
subsection (b)(3).
[[Page 136 STAT. 2007]]
``(iii) Revocation of election.--In the case
of a taxpayer who makes an election described in
paragraph (1)(C) with respect to carbon capture
equipment, such taxpayer may, at any time during
the period described in clause (i)(II)(aa), revoke
the application of such election with respect to
such equipment for any subsequent taxable years
during such period. <<NOTE: Applicability.>> Any
such election, if made, shall apply to the
applicable year specified in such election and
each subsequent taxable year within the period
described in clause (i)(II)(aa). Any election
under this subclause may not be subsequently
revoked.
``(D) <<NOTE: Applicability. Time period.>> Credit
for production of clean hydrogen.--
``(i) In general.--In the case of the credit
described in subsection (b)(5), any election under
subsection (a) shall--
``(I) apply separately with respect
to each qualified clean hydrogen
production facility,
``(II) be made for the taxable year
in which such facility is placed in
service (or within the 1-year period
subsequent to the date of enactment of
this section in the case of facilities
placed in service before December 31,
2022), and
``(III)(aa) in the case of a
taxpayer who makes an election described
in paragraph (1)(B), apply to such
taxable year and the 4 subsequent
taxable years with respect to such
facility which end before January 1,
2033, and
``(bb) in any other case, apply to
such taxable year and all subsequent
taxable years with respect to such
facility.
``(ii) Prohibition on transfer.--For any
taxable year described in clause (i)(III)(aa) with
respect to a qualified clean hydrogen production
facility, no election may be made by the taxpayer
under section 6418(a) for such taxable year with
respect to such facility for purposes of the
credit described in subsection (b)(5).
``(iii) Revocation of election.--In the case
of a taxpayer who makes an election described in
paragraph (1)(B) with respect to a qualified clean
hydrogen production facility, such taxpayer may,
at any time during the period described in clause
(i)(III)(aa), revoke the application of such
election with respect to such facility for any
subsequent taxable years during such period. Any
such election, <<NOTE: Applicability.>> if made,
shall apply to the applicable year specified in
such election and each subsequent taxable year
within the period described in clause (i)(II)(aa).
Any election under this subclause may not be
subsequently revoked.
``(E) <<NOTE: Applicability.>> Clean electricity
production credit.--In the case of the credit described
in subsection (b)(8), any election under subsection (a)
shall--
``(i) apply separately with respect to each
qualified facility,
``(ii) be made for the taxable year in which
such facility is placed in service, and
[[Page 136 STAT. 2008]]
``(iii) shall apply to such taxable year and
to any subsequent taxable year which is within the
period described in subsection (b)(1)(B) of
section 45Y with respect to such facility.
``(4) Timing.--The payment described in subsection (a) shall
be treated as made on--
``(A) <<NOTE: Claims.>> in the case of any
government, or political subdivision, described in
paragraph (1) and for which no return is required under
section 6011 or 6033(a), the later of the date that a
return would be due under section 6033(a) if such
government or subdivision were described in that section
or the date on which such government or subdivision
submits a claim for credit or refund (at such time and
in such manner as the Secretary shall provide), and
``(B) <<NOTE: Determination.>> in any other case,
the later of the due date (determined without regard to
extensions) of the return of tax for the taxable year or
the date on which such return is filed.
``(5) Additional information.--As a condition of, and prior
to, any amount being treated as a payment which is made by an
applicable entity under subsection (a), the Secretary may
require such information or registration as the Secretary deems
necessary for purposes of preventing duplication, fraud,
improper payments, or excessive payments under this section.
``(6) Excessive payment.--
``(A) <<NOTE: Determination.>> In general.--In the
case of any amount treated as a payment which is made by
the applicable entity under subsection (a), or the
amount of the payment made pursuant to subsection (c),
which the Secretary determines constitutes an excessive
payment, the tax imposed on such entity by chapter 1
(regardless of whether such entity would otherwise be
subject to tax under such chapter) for the taxable year
in which such determination is made shall be increased
by an amount equal to the sum of--
``(i) the amount of such excessive payment,
plus
``(ii) an amount equal to 20 percent of such
excessive payment.
``(B) Reasonable cause.--Subparagraph (A)(ii) shall
not apply if the applicable entity demonstrates to the
satisfaction of the Secretary that the excessive payment
resulted from reasonable cause.
``(C) Excessive payment defined.--For purposes of
this paragraph, the term `excessive payment' means, with
respect to a facility or property for which an election
is made under this section for any taxable year, an
amount equal to the excess of--
``(i) the amount treated as a payment which is
made by the applicable entity under subsection
(a), or the amount of the payment made pursuant to
subsection (c), with respect to such facility or
property for such taxable year, over
``(ii) the amount of the credit which, without
application of this section, would be otherwise
allowable (as determined pursuant to paragraph (2)
and without regard to section 38(c)) under this
title with respect to such facility or property
for such taxable year.
[[Page 136 STAT. 2009]]
``(e) Denial of Double Benefit.--In the case of an applicable entity
making an election under this section with respect to an applicable
credit, such credit shall be reduced to zero and shall, for any other
purposes under this title, be deemed to have been allowed to such entity
for such taxable year.
``(f) <<NOTE: Determination.>> Mirror Code Possessions.--In the
case of any possession of the United States with a mirror code tax
system (as defined in section 24(k)), this section shall not be treated
as part of the income tax laws of the United States for purposes of
determining the income tax law of such possession unless such possession
elects to have this section be so treated.
``(g) <<NOTE: Applicability.>> Basis Reduction and Recapture.--
Except as otherwise provided in subsection (c)(2)(A), rules similar to
the rules of section 50 shall apply for purposes of this section.
``(h) <<NOTE: Guidelines.>> Regulations.--The Secretary shall issue
such regulations or other guidance as may be necessary to carry out the
purposes of this section, including guidance to ensure that the amount
of the payment or deemed payment made under this section is commensurate
with the amount of the credit that would be otherwise allowable
(determined without regard to section 38(c)).''.
(b) Transfer of Certain Credits.--Subchapter B of chapter 65, as
amended by subsection (a), is amended by inserting after section 6417
the following new section:
``SEC. 6418. <<NOTE: 26 USC 6418.>> TRANSFER OF CERTAIN CREDITS.
``(a) In General.--In the case of an eligible taxpayer which elects
to transfer all (or any portion specified in the election) of an
eligible credit determined with respect to such taxpayer for any taxable
year to a taxpayer (referred to in this section as the `transferee
taxpayer') which is not related (within the meaning of section 267(b) or
707(b)(1)) to the eligible taxpayer, the transferee taxpayer specified
in such election (and not the eligible taxpayer) shall be treated as the
taxpayer for purposes of this title with respect to such credit (or such
portion thereof).
``(b) Treatment of Payments Made in Connection With Transfer.--With
respect to any amount paid by a transferee taxpayer to an eligible
taxpayer as consideration for a transfer described in subsection (a),
such consideration--
``(1) <<NOTE: Requirement.>> shall be required to be paid
in cash,
``(2) shall not be includible in gross income of the
eligible taxpayer, and
``(3) with respect to the transferee taxpayer, shall not be
deductible under this title.
``(c) Application to Partnerships and S Corporations.--
``(1) In general.--In the case of any eligible credit
determined with respect to any facility or property held
directly by a partnership or S corporation, if such partnership
or S corporation makes an election under subsection (a) (in such
manner as the Secretary may provide) with respect to such
credit--
``(A) any amount received as consideration for a
transfer described in such subsection shall be treated
as tax exempt income for purposes of sections 705 and
1366, and
``(B) a partner's distributive share of such tax
exempt income shall be based on such partner's
distributive share of the otherwise eligible credit for
each taxable year.
[[Page 136 STAT. 2010]]
``(2) Coordination with application at partner or
shareholder level.--In the case of any facility or property held
directly by a partnership or S corporation, no election by any
partner or shareholder shall be allowed under subsection (a)
with respect to any eligible credit determined with respect to
such facility or property.
``(d) Taxable Year in Which Credit Taken Into Account.--In the case
of any credit (or portion thereof) with respect to which an election is
made under subsection (a), such credit shall be taken into account in
the first taxable year of the transferee taxpayer ending with, or after,
the taxable year of the eligible taxpayer with respect to which the
credit was determined.
``(e) Limitations on Election.--
``(1) <<NOTE: Deadline. Time period.>> Time for election.--
An election under subsection (a) to transfer any portion of an
eligible credit shall be made not later than the due date
(including extensions of time) for the return of tax for the
taxable year for which the credit is determined, but in no event
earlier than 180 days after the date of the enactment of this
section. Any such election, once made, shall be irrevocable.
``(2) No additional transfers.--No election may be made
under subsection (a) by a transferee taxpayer with respect to
any portion of an eligible credit which has been previously
transferred to such taxpayer pursuant to this section.
``(f) Definitions.--For purposes of this section--
``(1) Eligible credit.--
``(A) In general.--The term `eligible credit' means
each of the following:
``(i) So much of the credit for alternative
fuel vehicle refueling property allowed under
section 30C which, pursuant to subsection (d)(1)
of such section, is treated as a credit listed in
section 38(b).
``(ii) The renewable electricity production
credit determined under section 45(a).
``(iii) The credit for carbon oxide
sequestration determined under section 45Q(a).
``(iv) The zero-emission nuclear power
production credit determined under section 45U(a).
``(v) The clean hydrogen production credit
determined under section 45V(a).
``(vi) The advanced manufacturing production
credit determined under section 45X(a).
``(vii) The clean electricity production
credit determined under section 45Y(a).
``(viii) The clean fuel production credit
determined under section 45Z(a).
``(ix) The energy credit determined under
section 48.
``(x) The qualifying advanced energy project
credit determined under section 48C.
``(xi) The clean electricity investment credit
determined under section 48E.
``(B) Election for certain credits.--In the case of
any eligible credit described in clause (ii), (iii),
(v), or (vii) of subparagraph (A), an election under
subsection (a) shall be made--
[[Page 136 STAT. 2011]]
``(i) separately with respect to each facility
for which such credit is determined, and
``(ii) <<NOTE: Time periods. Effective
dates.>> for each taxable year during the 10-year
period beginning on the date such facility was
originally placed in service (or, in the case of
the credit described in clause (iii), for each
year during the 12-year period beginning on the
date the carbon capture equipment was originally
placed in service at such facility).
``(C) Exception for business credit carryforwards or
carrybacks.--The term `eligible credit' shall not
include any business credit carryforward or business
credit carryback determined under section 39.
``(2) Eligible taxpayer.--The term `eligible taxpayer' means
any taxpayer which is not described in section 6417(d)(1)(A).
``(g) Special Rules.--For purposes of this section--
``(1) <<NOTE: Determination.>> Additional information.--As
a condition of, and prior to, any transfer of any portion of an
eligible credit pursuant to subsection (a), the Secretary may
require such information (including, in such form or manner as
is determined appropriate by the Secretary, such information
returns) or registration as the Secretary deems necessary for
purposes of preventing duplication, fraud, improper payments, or
excessive payments under this section.
``(2) Excessive credit transfer.--
``(A) <<NOTE: Determination.>> In general.--In the
case of any portion of an eligible credit which is
transferred to a transferee taxpayer pursuant to
subsection (a) which the Secretary determines
constitutes an excessive credit transfer, the tax
imposed on the transferee taxpayer by chapter 1
(regardless of whether such entity would otherwise be
subject to tax under such chapter) for the taxable year
in which such determination is made shall be increased
by an amount equal to the sum of--
``(i) the amount of such excessive credit
transfer, plus
``(ii) an amount equal to 20 percent of such
excessive credit transfer.
``(B) Reasonable cause.--Subparagraph (A)(ii) shall
not apply if the transferee taxpayer demonstrates to the
satisfaction of the Secretary that the excessive credit
transfer resulted from reasonable cause.
``(C) <<NOTE: Definition.>> Excessive credit
transfer defined.--For purposes of this paragraph, the
term `excessive credit transfer' means, with respect to
a facility or property for which an election is made
under subsection (a) for any taxable year, an amount
equal to the excess of--
``(i) the amount of the eligible credit
claimed by the transferee taxpayer with respect to
such facility or property for such taxable year,
over
``(ii) the amount of such credit which,
without application of this section, would be
otherwise allowable under this title with respect
to such facility or property for such taxable
year.
``(3) Basis reduction; notification of recapture.--In the
case of any election under subsection (a) with respect to
[[Page 136 STAT. 2012]]
any portion of an eligible credit described in clauses (ix)
through (xi) of subsection (f)(1)(A)--
``(A) <<NOTE: Applicability.>> subsection (c) of
section 50 shall apply to the applicable investment
credit property (as defined in subsection (a)(5) of such
section) as if such eligible credit was allowed to the
eligible taxpayer, and
``(B) <<NOTE: Notices.>> if, during any taxable
year, the applicable investment credit property (as
defined in subsection (a)(5) of section 50) is disposed
of, or otherwise ceases to be investment credit property
with respect to the eligible taxpayer, before the close
of the recapture period (as described in subsection
(a)(1) of such section)--
``(i) such eligible taxpayer shall provide
notice of such occurrence to the transferee
taxpayer (in such form and manner as the Secretary
shall prescribe), and
``(ii) the transferee taxpayer shall provide
notice of the recapture amount (as defined in
subsection (c)(2) of such section), if any, to the
eligible taxpayer (in such form and manner as the
Secretary shall prescribe).
``(4) Prohibition on election or transfer with respect to
progress expenditures.--This section shall not apply with
respect to any amount of an eligible credit which is allowed
pursuant to rules similar to the rules of subsections (c)(4) and
(d) of section 46 (as in effect on the day before the date of
the enactment of the Revenue Reconciliation Act of 1990).
``(h) <<NOTE: Guidelines.>> Regulations.--The Secretary shall issue
such regulations or other guidance as may be necessary to carry out the
purposes of this section, including regulations or other guidance
providing rules for determining a partner's distributive share of the
tax exempt income described in subsection (c)(1).''.
(c) <<NOTE: 26 USC 50.>> Real Estate Investment Trusts.--Section
50(d) is amended by adding at the end the following: ``In the case of a
real estate investment trust making an election under section 6418,
paragraphs (1)(B) and (2)(B) of the section 46(e) referred to in
paragraph (1) of this subsection shall not apply to any investment
credit property of such real estate investment trust to which such
election applies.''.
(d) 3-year Carryback for Applicable Credits.--Section 39(a) is
amended by adding at the end the following:
``(4) 3-year carryback for applicable credits.--
Notwithstanding subsection (d), in the case of any applicable
credit (as defined in section 6417(b))--
``(A) this section shall be applied separately from
the business credit (other than the applicable credit),
``(B) paragraph (1) shall be applied by substituting
`each of the 3 taxable years' for `the taxable year' in
subparagraph (A) thereof, and
``(C) paragraph (2) shall be applied--
``(i) by substituting `23 taxable years' for
`21 taxable years' in subparagraph (A) thereof,
and
``(ii) by substituting `22 taxable years' for
`20 taxable years' in subparagraph (B) thereof.''.
[[Page 136 STAT. 2013]]
(e) Clerical Amendment.--The table of sections for subchapter B of
chapter 65 <<NOTE: 26 USC 6411 prec.>> is amended by inserting after
the item relating to section 6416 the following new items:
``Sec. 6417. Elective payment of applicable credits.
``Sec. 6418. Transfer of certain credits.''.
(f) <<NOTE: Effective date. Time periods. 26 USC 6417 note.>>
Gross-up of Direct Spending.--Beginning in fiscal year 2023 and each
fiscal year thereafter, the portion of any payment made to a taxpayer
pursuant to an election under section 6417 of the Internal Revenue Code
of 1986, or any amount treated as a payment which is made by the
taxpayer under subsection (a) of such section, that is direct spending
shall be increased by 6.0445 percent.
(g) <<NOTE: 26 USC 6417 note.>> Effective Date.--The amendments
made by this section shall apply to taxable years beginning after
December 31, 2022.
SEC. 13802. <<NOTE: Effective date.>> APPROPRIATIONS.
Immediately upon the enactment of this Act, in addition to amounts
otherwise available, there are appropriated for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated, $500,000,000 to
remain available until September 30, 2031, for necessary expenses for
the Internal Revenue Service to carry out this subtitle (and the
amendments made by this subtitle), which shall supplement and not
supplant any other appropriations that may be available for this
purpose.
PART 9--OTHER PROVISIONS
SEC. 13901. PERMANENT EXTENSION OF TAX RATE TO FUND BLACK LUNG
DISABILITY TRUST FUND.
(a) <<NOTE: 26 USC 4121.>> In General.--Section 4121 is amended by
striking subsection (e).
(b) <<NOTE: 26 USC 4121 note.>> Effective Date.--The amendment made
by this section shall apply to sales in calendar quarters beginning
after the date which is 1 day after the date of enactment of this Act.
SEC. 13902. INCREASE IN RESEARCH CREDIT AGAINST PAYROLL TAX FOR
SMALL BUSINESSES.
(a) In General.--Clause (i) of section 41(h)(4)(B) is amended--
(1) by striking ``Amount.--The amount'' and inserting
``Amount.--
``(I) In general.--The amount'', and
(2) by adding at the end the following new subclause:
``(II) <<NOTE: Effective date.>>
Increase.--In the case of taxable years
beginning after December 31, 2022, the
amount in subclause (I) shall be
increased by $250,000.''.
(b) Allowance of Credit.--
(1) In general.--Paragraph (1) of section 3111(f) is
amended--
(A) by striking ``for a taxable year, there shall be
allowed'' and inserting ``for a taxable year--
``(A) there shall be allowed'',
(B) by striking ``equal to the'' and inserting
``equal to so much of the'',
(C) by striking the period at the end and inserting
``as does not exceed the limitation of subclause (I) of
section 41(h)(4)(B)(i) (applied without regard to
subclause (II) thereof), and'', and
[[Page 136 STAT. 2014]]
(D) by adding at the end the following new
subparagraph:
``(B) there shall be allowed as a credit against the
tax imposed by subsection (b) for the first calendar
quarter which begins after the date on which the
taxpayer files the return specified in section
41(h)(4)(A)(ii) an amount equal to so much of the
payroll tax credit portion determined under section
41(h)(2) as is not allowed as a credit under
subparagraph (A).''.
(2) <<NOTE: 26 USC 3111.>> Limitation.--Paragraph (2) of
section 3111(f) is amended--
(A) by striking ``paragraph (1)'' and inserting
``paragraph (1)(A)'', and
(B) by inserting ``, and the credit allowed by
paragraph (1)(B) shall not exceed the tax imposed by
subsection (b) for any calendar quarter,'' after
``calendar quarter''.
(3) Carryover.--Paragraph (3) of section 3111(f) is amended
by striking ``the credit'' and inserting ``any credit''.
(4) Deduction allowed.--Paragraph (4) of section 3111(f) is
amended--
(A) by striking ``credit'' and inserting
``credits'', and
(B) by striking ``subsection (a)'' and inserting
``subsection (a) or (b)''.
(c) Aggregation Rules.--Clause (ii) of section 41(h)(5)(B) is
amended by striking ``the $250,000 amount'' and inserting ``each of the
$250,000 amounts''.
(d) <<NOTE: 26 USC 41 note.>> Effective Date.--The amendments made
by this section shall apply to taxable years beginning after December
31, 2022.
SEC. 13903. REINSTATEMENT OF LIMITATION RULES FOR DEDUCTION FOR
STATE AND LOCAL, ETC., TAXES;
EXTENSION OF LIMITATION ON EXCESS
BUSINESS LOSSES OF NONCORPORATE
TAXPAYERS.
(a) Reinstatement of Limitation Rules for Deduction for State and
Local, etc., Taxes.--
(1) In general.--Section 164(b)(6), as amended by section
13904, is further amended--
(A) in the heading, by striking ``2026'' and
inserting ``2025'', and
(B) by striking ``2027'' and inserting ``2026''.
(2) <<NOTE: 26 USC 164 note.>> Effective date.--The
amendments made by this subsection shall apply to taxable years
beginning after December 31, 2022.
(b) Extension of Limitation on Excess Business Losses of
Noncorporate Taxpayers.--
(1) In general.--Section 461(l)(1) is amended by striking
``January 1, 2027'' each place it appears and inserting
``January 1, 2029''.
(2) <<NOTE: 26 USC 461 note.>> Effective date.--The
amendments made by this subsection shall apply to taxable years
beginning after December 31, 2026.
SEC. 13904. REMOVAL OF HARMFUL SMALL BUSINESS TAXES; EXTENSION OF
LIMITATION ON DEDUCTION FOR STATE AND
LOCAL, ETC., TAXES.
(a) Removal of Harmful Small Business Taxes.--Subparagraph (D) of
section 59(k)(1), as added by section 10101, is amended to read as
follows:
[[Page 136 STAT. 2015]]
``(D) Special rules for determining applicable
corporation status.--Solely for purposes of determining
whether a corporation is an applicable corporation under
this paragraph, all adjusted financial statement income
of persons treated as a single employer with such
corporation under subsection (a) or (b) of section 52
shall be treated as adjusted financial statement income
of such corporation, and adjusted financial statement
income of such corporation shall be determined without
regard to paragraphs (2)(D)(i) and (11) of section
56A(c).''.
(b) Extension of Limitation on Deduction for State and Local, etc.,
Taxes.--
(1) In general.--Section 164(b)(6) is amended--
(A) in the heading, by striking ``2025'' and
inserting ``2026'', and
(B) by striking ``2026'' and inserting ``2027''.
(2) <<NOTE: 26 USC 164 note.>> Effective date.--The
amendments made by this subsection shall apply to taxable years
beginning after December 31, 2022.
TITLE II--COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY
Subtitle A--General Provisions
SEC. 20001. <<NOTE: 7 USC 6936 note.>> DEFINITION OF SECRETARY.
In this title, the term ``Secretary'' means the Secretary of
Agriculture.
Subtitle B--Conservation
SEC. 21001. ADDITIONAL AGRICULTURAL CONSERVATION INVESTMENTS.
(a) <<NOTE: Time periods.>> Appropriations.--In addition to amounts
otherwise available (and subject to subsection (b)), there are
appropriated to the Secretary, out of any money in the Treasury not
otherwise appropriated, to remain available until September 30, 2031
(subject to the condition that no such funds may be disbursed after
September 30, 2031)--
(1) to carry out, using the facilities and authorities of
the Commodity Credit Corporation, the environmental quality
incentives program under subchapter A of chapter 4 of subtitle D
of title XII of the Food Security Act of 1985 (16 U.S.C. 3839aa
through 3839aa-8)--
(A)(i) $250,000,000 for fiscal year 2023;
(ii) $1,750,000,000 for fiscal year 2024;
(iii) $3,000,000,000 for fiscal year 2025; and
(iv) $3,450,000,000 for fiscal year 2026; and
(B) subject to the conditions on the use of the
funds that--
(i) section 1240B(f)(1) of the Food Security
Act of 1985 (16 U.S.C. 3839aa-2(f)(1)) shall not
apply;
[[Page 136 STAT. 2016]]
(ii) <<NOTE: Applicability.>> section
1240H(c)(2) of the Food Security Act of 1985 (16
U.S.C. 3839aa-8(c)(2)) shall be applied--
(I) by substituting ``$50,000,000''
for ``$25,000,000''; and
(II) with the Secretary prioritizing
proposals that utilize diet and feed
management to reduce enteric methane
emissions from ruminants; and
(iii) <<NOTE: Determination.>> the funds
shall be available for 1 or more agricultural
conservation practices or enhancements that the
Secretary determines directly improve soil carbon,
reduce nitrogen losses, or reduce, capture, avoid,
or sequester carbon dioxide, methane, or nitrous
oxide emissions, associated with agricultural
production;
(2) to carry out, using the facilities and authorities of
the Commodity Credit Corporation, the conservation stewardship
program under subchapter B of that chapter (16 U.S.C. 3839aa-21
through 3839aa-25)--
(A)(i) $250,000,000 for fiscal year 2023;
(ii) $500,000,000 for fiscal year 2024;
(iii) $1,000,000,000 for fiscal year 2025; and
(iv) $1,500,000,000 for fiscal year 2026; and
(B) subject to the condition on the use of the funds
that the funds shall only be available for 1 or more
agricultural conservation practices, enhancements, or
bundles that the Secretary determines directly improve
soil carbon, reduce nitrogen losses, or reduce, capture,
avoid, or sequester carbon dioxide, methane, or nitrous
oxide emissions, associated with agricultural
production;
(3) to carry out, using the facilities and authorities of
the Commodity Credit Corporation, the agricultural conservation
easement program under subtitle H of title XII of that Act (16
U.S.C. 3865 through 3865d) for easements or interests in land
that will most reduce, capture, avoid, or sequester carbon
dioxide, methane, or nitrous oxide emissions associated with
land eligible for the program--
(A) $100,000,000 for fiscal year 2023;
(B) $200,000,000 for fiscal year 2024;
(C) $500,000,000 for fiscal year 2025; and
(D) $600,000,000 for fiscal year 2026; and
(4) to carry out, using the facilities and authorities of
the Commodity Credit Corporation, the regional conservation
partnership program under subtitle I of title XII of that Act
(16 U.S.C. 3871 through 3871f)--
(A)(i) $250,000,000 for fiscal year 2023;
(ii) $800,000,000 for fiscal year 2024;
(iii) $1,500,000,000 for fiscal year 2025; and
(iv) $2,400,000,000 for fiscal year 2026; and
(B) subject to the conditions on the use of the
funds that--
(i) section 1271C(d)(2)(B) of the Food
Security Act of 1985 (16 U.S.C. 3871c(d)(2)(B))
shall not apply; and
(ii) the Secretary shall prioritize
partnership agreements under section 1271C(d) of
the Food Security Act of 1985 (16 U.S.C. 3871c(d))
that support the implementation of conservation
projects that assist agricultural producers and
nonindustrial private
[[Page 136 STAT. 2017]]
forestland owners in directly improving soil
carbon, reducing nitrogen losses, or reducing,
capturing, avoiding, or sequestering carbon
dioxide, methane, or nitrous oxide emissions,
associated with agricultural production.
(b) Conditions.--The funds made available under subsection (a) are
subject to the conditions that the Secretary shall not--
(1) enter into any agreement--
(A) that is for a term extending beyond September
30, 2031; or
(B) <<NOTE: Time period.>> under which any payment
could be outlaid or funds disbursed after September 30,
2031; or
(2) use any other funds available to the Secretary to
satisfy obligations initially made under this section.
(c) Conforming Amendments.--
(1) Section 1240B of the Food Security Act of 1985 (16
U.S.C. 3839aa-2) is amended--
(A) in subsection (a), by striking ``2023'' and
inserting ``2031''; and
(B) in subsection (f)(2)(B)--
(i) in the subparagraph heading, by striking
``2023'' and inserting ``2031''; and
(ii) by striking ``2023'' and inserting
``2031''.
(2) Section 1240H of the Food Security Act of 1985 (16
U.S.C. 3839aa-8) is amended by striking ``2023'' each place it
appears and inserting ``2031''.
(3) Section 1240J(a) of the Food Security Act of 1985 (16
U.S.C. 3839aa-22(a)) is amended, in the matter preceding
paragraph (1), by striking ``2023'' and inserting ``2031''.
(4) Section 1240L(h)(2)(A) of the Food Security Act of 1985
(16 U.S.C. 3839aa-24(h)(2)(A)) is amended by striking ``2023''
and inserting ``2031''.
(5) Section 1241 of the Food Security Act of 1985 (16 U.S.C.
3841) is amended--
(A) in subsection (a)--
(i) in the matter preceding paragraph (1), by
striking ``2023'' and inserting ``2031'';
(ii) in paragraph (2)(F), by striking ``2023''
and inserting ``2031''; and
(iii) in paragraph (3), by striking ``fiscal
year 2023'' each place it appears and inserting
``each of fiscal years 2023 through 2031'';
(B) in subsection (b), by striking ``2023'' and
inserting ``2031''; and
(C) in subsection (h)--
(i) in paragraph (1)(B), in the subparagraph
heading, by striking ``2023'' and inserting
``2031''; and
(ii) by striking ``2023'' each place it
appears and inserting ``2031''.
(6) Section 1244(n)(3)(A) of the Food Security Act of 1985
(16 U.S.C. 3844(n)(3)(A)) is amended by striking ``2023'' and
inserting ``2031''.
(7) Section 1271D(a) of the Food Security Act of 1985 (16
U.S.C. 3871d(a)) is amended by striking ``2023'' and inserting
``2031''.
[[Page 136 STAT. 2018]]
SEC. 21002. <<NOTE: 7 USC 6936 note.>> CONSERVATION TECHNICAL
ASSISTANCE.
(a) Appropriations.--In addition to amounts otherwise available (and
subject to subsection (b)), there are appropriated to the Secretary for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, to remain available until September 30, 2031 (subject to
the condition that no such funds may be disbursed after September 30,
2031)--
(1) $1,000,000,000 to provide conservation technical
assistance through the Natural Resources Conservation Service;
and
(2) $300,000,000 to carry out a program to quantify carbon
sequestration and carbon dioxide, methane, and nitrous oxide
emissions, through which the Natural Resources Conservation
Service shall collect field-based data to assess the carbon
sequestration and reduction in carbon dioxide, methane, and
nitrous oxide emissions outcomes associated with activities
carried out pursuant to this section and use the data to monitor
and track those carbon sequestration and emissions trends
through the Greenhouse Gas Inventory and Assessment Program of
the Department of Agriculture.
(b) Conditions.--The funds made available under this section are
subject to the conditions that the Secretary shall not--
(1) <<NOTE: Time periods.>> enter into any agreement--
(A) that is for a term extending beyond September
30, 2031; or
(B) under which any payment could be outlaid or
funds disbursed after September 30, 2031;
(2) use any other funds available to the Secretary to
satisfy obligations initially made under this section; or
(3) interpret this section to authorize funds of the
Commodity Credit Corporation for activities under this section
if such funds are not expressly authorized or currently expended
for such purposes.
(c) Administrative Costs.--In addition to amounts otherwise
available, there is appropriated to the Secretary for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated,
$100,000,000, to remain available until September 30, 2028, for
administrative costs of the agencies and offices of the Department of
Agriculture for costs related to implementing this section.
Subtitle C--Rural Development and Agricultural Credit
SEC. 22001. ADDITIONAL FUNDING FOR ELECTRIC LOANS FOR RENEWABLE
ENERGY.
Section 9003 of the Farm Security and Rural Investment Act of 2002
(7 U.S.C. 8103) is amended by adding at the end the following:
``(h) Additional Funding for Electric Loans for Renewable Energy.--
``(1) Appropriations.--Notwithstanding subsections (a)
through (e), and (g), in addition to amounts otherwise
available, there is appropriated to the Secretary for fiscal
year 2022, out of any money in the Treasury not otherwise
appropriated, $1,000,000,000, to remain available until
September 30, 2031,
[[Page 136 STAT. 2019]]
for the cost of loans under section 317 of the Rural
Electrification Act of 1936 (7 U.S.C. 940g), including for
projects that store electricity that support the types of
eligible projects under that section, which shall be forgiven in
an amount that is not greater than 50 percent of the loan based
on how the borrower and the project meets the terms and
conditions for loan forgiveness consistent with the purposes of
that section established by the Secretary, except as provided in
paragraph (3).
``(2) <<NOTE: Time period.>> Limitation.--The Secretary
shall not enter into any loan agreement pursuant this subsection
that could result in disbursements after September 30, 2031.
``(3) <<NOTE: Criteria. Waiver.>> Exception.--The Secretary
shall establish criteria for waiving the 50 percent limitation
described in paragraph (1).''.
SEC. 22002. RURAL ENERGY FOR AMERICA PROGRAM.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary, out of any money in the Treasury
not otherwise appropriated, for eligible projects under section 9007 of
the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8107), and
notwithstanding section 9007(c)(3)(A) of that Act, the amount of a grant
shall not exceed 50 percent of the cost of the activity carried out
using the grant funds--
(1) $820,250,000 for fiscal year 2022, to remain available
until September 30, 2031; and
(2) $180,276,500 for each of fiscal years 2023 through 2027,
to remain available until September 30, 2031.
(b) Underutilized Renewable Energy Technologies.--In addition to
amounts otherwise available, there is appropriated to the Secretary, out
of any money in the Treasury not otherwise appropriated, to provide
grants and loans guaranteed by the Secretary (including the costs of
such loans) under the program described in subsection (a) relating to
underutilized renewable energy technologies, and to provide technical
assistance for applying to the program described in subsection (a),
including for underutilized renewable energy technologies,
notwithstanding section 9007(c)(3)(A) of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 8107(c)(3)(A)), the amount of a grant
shall not exceed 50 percent of the cost of the activity carried out
using the grant funds, and to the extent the following amounts remain
available at the end of each fiscal year, the Secretary shall use such
amounts in accordance with subsection (a)--
(1) $144,750,000 for fiscal year 2022, to remain available
until September 30, 2031; and
(2) $31,813,500 for each of fiscal years 2023 through 2027,
to remain available until September 30, 2031.
(c) <<NOTE: Time period.>> Limitation.--The Secretary shall not
enter into, pursuant to this section--
(1) any loan agreement that may result in a disbursement
after September 30, 2031; or
(2) any grant agreement that may result in any outlay after
September 30, 2031.
[[Page 136 STAT. 2020]]
SEC. 22003. BIOFUEL INFRASTRUCTURE AND AGRICULTURE PRODUCT MARKET
EXPANSION.
Section 9003 of the Farm Security and Rural Investment Act of 2002
(7 U.S.C. 8103) (as amended by section 22001) is amended by adding at
the end the following:
``(i) Biofuel Infrastructure and Agriculture Product Market
Expansion.--
``(1) Appropriation.--Notwithstanding subsections (a)
through (e) and subsection (g), in addition to amounts otherwise
available, there is appropriated to the Secretary for fiscal
year 2022, out of any money in the Treasury not otherwise
appropriated, $500,000,000, to remain available until September
30, 2031, to carry out this subsection.
``(2) <<NOTE: Grants.>> Use of funds.--The Secretary shall
use the amounts made available by paragraph (1) to provide
grants, for which the Federal share shall be not more than 75
percent of the total cost of carrying out a project for which
the grant is provided, on a competitive basis, to increase the
sale and use of agricultural commodity-based fuels through
infrastructure improvements for blending, storing, supplying, or
distributing biofuels, except for transportation infrastructure
not on location where such biofuels are blended, stored,
supplied, or distributed--
``(A) <<NOTE: Determination.>> by installing,
retrofitting, or otherwise upgrading fuel dispensers or
pumps and related equipment, storage tank system
components, and other infrastructure required at a
location related to dispensing certain biofuel blends to
ensure the increased sales of fuels with high levels of
commodity-based ethanol and biodiesel that are at or
greater than the levels required in the Notice of
Funding Availability for the Higher Blends
Infrastructure Incentive Program for Fiscal Year 2020,
published in the Federal Register (85 Fed. Reg. 26656),
as determined by the Secretary; and
``(B) by building and retrofitting home heating oil
distribution centers or equivalent entities and
distribution systems for ethanol and biodiesel
blends.''.
SEC. 22004. USDA ASSISTANCE FOR RURAL ELECTRIC COOPERATIVES.
Section 9003 of the Farm Security and Rural Investment Act of 2002
(7 U.S.C. 8103) (as amended by section 22003) is amended by adding at
the end the following:
``(j) USDA Assistance for Rural Electric Cooperatives.--
``(1) Appropriation.--Notwithstanding subsections (a)
through (e) and (g), in addition to amounts otherwise available,
there is appropriated to the Secretary for fiscal year 2022, out
of any money in the Treasury not otherwise appropriated,
$9,700,000,000, to remain available until September 30, 2031,
for the long-term resiliency, reliability, and affordability of
rural electric systems by providing to an eligible entity
(defined as an electric cooperative described in section
501(c)(12) or 1381(a)(2) of the Internal Revenue Code of 1986
and is or has been a Rural Utilities Service electric loan
borrower pursuant to the Rural Electrification Act of 1936 or
serving a predominantly rural area or a wholly or jointly owned
subsidiary of such electric cooperative) loans, modifications of
loans,
[[Page 136 STAT. 2021]]
the cost of loans and modifications, and other financial
assistance to achieve the greatest reduction in carbon dioxide,
methane, and nitrous oxide emissions associated with rural
electric systems through the purchase of renewable energy,
renewable energy systems, zero-emission systems, and carbon
capture and storage systems, to deploy such systems, or to make
energy efficiency improvements to electric generation and
transmission systems of the eligible entity after the date of
enactment of this subsection.
``(2) Limitation.--No eligible entity may receive an amount
equal to more than 10 percent of the total amount made available
by this subsection.
``(3) Requirement.--The amount of a grant under this
subsection shall be not more than 25 percent of the total
project costs of the eligible entity carrying out a project
using a grant under this subsection.
``(4) Prohibition.--Nothing in this subsection shall be
interpreted to authorize funds of the Commodity Credit
Corporation for activities under this subsection if such funds
are not expressly authorized or currently expended for such
purposes.
``(5) <<NOTE: Time period.>> Disbursements.--The Secretary
shall not enter into, pursuant to this subsection--
``(A) any loan agreement that may result in a
disbursement after September 30, 2031; or
``(B) any grant agreement that may result in any
outlay after September 30, 2031.''.
SEC. 22005. ADDITIONAL USDA RURAL DEVELOPMENT ADMINISTRATIVE
FUNDS.
In addition to amounts otherwise available, there is appropriated to
the Secretary for fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $100,000,000, to remain available until
September 30, 2031, for administrative costs and salaries and expenses
for the Rural Development mission area and administrative costs of the
agencies and offices of the Department for costs related to implementing
this subtitle.
SEC. 22006. FARM LOAN IMMEDIATE RELIEF FOR BORROWERS WITH AT-RISK
AGRICULTURAL OPERATIONS.
In addition to amounts otherwise available, there is appropriated to
the Secretary for fiscal year 2022, out of amounts in the Treasury not
otherwise appropriated, $3,100,000,000, to remain available until
September 30, 2031, to provide payments to, for the cost of loans or
loan modifications for, or to carry out section 331(b)(4) of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1981(b)(4)) with
respect to distressed borrowers of direct or guaranteed loans
administered by the Farm Service Agency under subtitle A, B, or C of
that Act (7 U.S.C. 1922 through 1970). <<NOTE: Determination.>> In
carrying out this section, the Secretary shall provide relief to those
borrowers whose agricultural operations are at financial risk as
expeditiously as possible, as determined by the Secretary.
SEC. 22007. USDA ASSISTANCE AND SUPPORT FOR UNDERSERVED FARMERS,
RANCHERS, AND FORESTERS.
Section 1006 of the American Rescue Plan Act of 2021 (7 U.S.C. 2279
note; Public Law 117-2) is amended to read as follows:
[[Page 136 STAT. 2022]]
``SEC. 1006. USDA ASSISTANCE AND SUPPORT FOR UNDERSERVED FARMERS,
RANCHERS, FORESTERS.
``(a) Technical and Other Assistance.--In addition to amounts
otherwise available, there is appropriated to the Secretary of
Agriculture for fiscal year 2022, to remain available until September
30, 2031, out of any money in the Treasury not otherwise appropriated,
$125,000,000 to provide outreach, mediation, financial training,
capacity building training, cooperative development and agricultural
credit training and support, and other technical assistance on issues
concerning food, agriculture, agricultural credit, agricultural
extension, rural development, or nutrition to underserved farmers,
ranchers, or forest landowners, including veterans, limited resource
producers, beginning farmers and ranchers, and farmers, ranchers, and
forest landowners living in high poverty areas.
``(b) Land Loss Assistance.--In addition to amounts otherwise
available, there is appropriated to the Secretary of Agriculture for
fiscal year 2022, to remain available until September 30, 2031, out of
any money in the Treasury not otherwise appropriated, $250,000,000 to
provide grants and loans to eligible entities, as determined by the
Secretary, to improve land access (including heirs' property and
fractionated land issues) for underserved farmers, ranchers, and forest
landowners, including veterans, limited resource producers, beginning
farmers and ranchers, and farmers, ranchers, and forest landowners
living in high poverty areas.
``(c) Equity Commissions.--In addition to amounts otherwise
available, there is appropriated to the Secretary of Agriculture for
fiscal year 2022, to remain available until September 30, 2031, out of
any money in the Treasury not otherwise appropriated, $10,000,000 to
fund the activities of one or more equity commissions that will address
racial equity issues within the Department of Agriculture and the
programs of the Department of Agriculture.
``(d) Research, Education, and Extension.--In addition to amounts
otherwise available, there is appropriated to the Secretary of
Agriculture for fiscal year 2022, to remain available until September
30, 2031, out of any money in the Treasury not otherwise appropriated,
$250,000,000 to support and supplement agricultural research, education,
and extension, as well as scholarships and programs that provide
internships and pathways to agricultural sector or Federal employment,
for 1890 Institutions (as defined in section 2 of the Agricultural,
Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7601)),
1994 Institutions (as defined in section 532 of the Equity in
Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public Law
103-382)), Alaska Native serving institutions and Native Hawaiian
serving institutions eligible to receive grants under subsections (a)
and (b), respectively, of section 1419B of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3156),
Hispanic-serving institutions eligible to receive grants under section
1455 of the National Agricultural Research, Extension, and Teaching
Policy Act of 1977 (7 U.S.C. 3241), and the insular area institutions of
higher education located in the territories of the United States, as
referred to in section 1489 of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3361).
``(e) <<NOTE: Time period.>> Discrimination Financial Assistance.--
In addition to amounts otherwise available, there is appropriated to the
Secretary
[[Page 136 STAT. 2023]]
of Agriculture for fiscal year 2022, to remain available until September
30, 2031, out of any money in the Treasury not otherwise appropriated,
$2,200,000,000 for a program to provide financial assistance, including
the cost of any financial assistance, to farmers, ranchers, or forest
landowners determined to have experienced discrimination prior to
January 1, 2021, in Department of Agriculture farm lending programs,
under which the amount of financial assistance provided to a recipient
may be not more than $500,000, as determined to be appropriate based on
any consequences experienced from the discrimination, which program
shall be administered through 1 or more qualified nongovernmental
entities selected by the Secretary subject to standards set and enforced
by the Secretary.
``(f) Administrative Costs.--In addition to amounts otherwise
available, there is appropriated to the Secretary of Agriculture for
fiscal year 2022, to remain available until September 30, 2031, out of
any money in the Treasury not otherwise appropriated, $24,000,000 for
administrative costs, including training employees, of the agencies and
offices of the Department of Agriculture to carry out this section.
``(g) Limitation.--The funds made available under this section are
subject to the condition that the Secretary shall not--
``(1) <<NOTE: Time period.>> enter into any agreement under
which any payment could be outlaid or funds disbursed after
September 30, 2031; or
``(2) use any other funds available to the Secretary to
satisfy obligations initially made under this section.''.
SEC. 22008. REPEAL OF FARM LOAN ASSISTANCE.
Section 1005 of the American Rescue Plan Act of 2021 (7 U.S.C. 1921
note; Public Law 117-2) is repealed.
Subtitle D--Forestry
SEC. 23001. NATIONAL FOREST SYSTEM RESTORATION AND FUELS REDUCTION
PROJECTS.
(a) Appropriations.--In addition to amounts otherwise available,
there are appropriated to the Secretary for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, to remain available
until September 30, 2031--
(1) $1,800,000,000 for hazardous fuels reduction projects on
National Forest System land within the wildland-urban interface;
(2) $200,000,000 for vegetation management projects on
National Forest System land carried out in accordance with a
plan developed under section 303(d)(1) or 304(a)(3) of the
Healthy Forests Restoration Act of 2003 (16 U.S.C. 6542(d)(1) or
6543(a)(3));
(3) $100,000,000 to provide for environmental reviews by the
Chief of the Forest Service in satisfying the obligations of the
Chief of the Forest Service under the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 through 4370m-12); and
(4) $50,000,000 for the protection of old-growth forests on
National Forest System land and to complete an inventory of old-
growth forests and mature forests within the National Forest
System.
[[Page 136 STAT. 2024]]
(b) Restrictions.--None of the funds made available by paragraph (1)
or (2) of subsection (a) may be used for any activity--
(1) conducted in a wilderness area or wilderness study area;
(2) that includes the construction of a permanent road or
motorized trail;
(3) <<NOTE: Deadline.>> that includes the construction of a
temporary road, except in the case of a temporary road that is
decommissioned by the Secretary not later than 3 years after the
earlier of--
(A) the date on which the temporary road is no
longer needed; and
(B) the date on which the project for which the
temporary road was constructed is completed;
(4) inconsistent with the applicable land management plan;
(5) inconsistent with the prohibitions of the rule of the
Forest Service entitled ``Special Areas; Roadless Area
Conservation'' (66 Fed. Reg. 3244 (January 12, 2001)), as
modified by subparts C and D of part 294 of title 36, Code of
Federal Regulations; or
(6) carried out on any land that is not National Forest
System land, including other forested land on Federal, State,
Tribal, or private land.
(c) Limitations.--Nothing in this section shall be interpreted to
authorize funds of the Commodity Credit Corporation for activities under
this section if such funds are not expressly authorized or currently
expended for such purposes.
(d) Cost-sharing Waiver.--
(1) In general.--The non-Federal cost-share requirement of a
project described in paragraph (2) may be waived at the
discretion of the Secretary.
(2) Project described.--A project referred to in paragraph
(1) is a project that--
(A) is carried out using funds made available under
this section;
(B) <<NOTE: Requirement. Contracts.>> requires a
partnership agreement, including a cooperative agreement
or mutual interest agreement; and
(C) is subject to a non-Federal cost-share
requirement.
(e) Definitions.--In this section:
(1) Decommission.--The term ``decommission'' means, with
respect to a road--
(A) reestablishing native vegetation on the road;
(B) restoring any natural drainage, watershed
function, or other ecological processes that were
disrupted or adversely impacted by the road by removing
or hydrologically disconnecting the road prism and
reestablishing stable slope contours; and
(C) effectively blocking the road to vehicular
traffic, where feasible.
(2) Ecological integrity.--The term ``ecological integrity''
has the meaning given the term in section 219.19 of title 36,
Code of Federal Regulations (as in effect on the date of
enactment of this Act).
(3) Hazardous fuels reduction project.--The term ``hazardous
fuels reduction project'' means an activity, including the use
of prescribed fire, to protect structures and communities from
wildfire that is carried out on National Forest System land.
[[Page 136 STAT. 2025]]
(4) Restoration.--The term ``restoration'' has the meaning
given the term in section 219.19 of title 36, Code of Federal
Regulations (as in effect on the date of enactment of this Act).
(5) Vegetation management project.--The term ``vegetation
management project'' means an activity carried out on National
Forest System land to enhance the ecological integrity and
achieve the restoration of a forest ecosystem through the
removal of vegetation, the use of prescribed fire, the
restoration of aquatic habitat, or the decommissioning of an
unauthorized, temporary, or system road.
(6) Wildland-urban interface.--The term ``wildland-urban
interface'' has the meaning given the term in section 101 of the
Healthy Forests Restoration Act of 2003 (16 U.S.C. 6511).
SEC. 23002. COMPETITIVE GRANTS FOR NON-FEDERAL FOREST LANDOWNERS.
(a) Appropriations.--In addition to amounts otherwise available,
there are appropriated to the Secretary for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, to remain available
until September 30, 2031--
(1) $150,000,000 for the competitive grant program under
section 13A of the Cooperative Forestry Assistance Act of 1978
(16 U.S.C. 2109a) for providing through that program a cost
share to carry out climate mitigation or forest resilience
practices in the case of underserved forest landowners, subject
to the condition that subsection (h) of that section shall not
apply;
(2) $150,000,000 for the competitive grant program under
section 13A of the Cooperative Forestry Assistance Act of 1978
(16 U.S.C. 2109a) for providing through that program grants to
support the participation of underserved forest landowners in
emerging private markets for climate mitigation or forest
resilience, subject to the condition that subsection (h) of that
section shall not apply;
(3) $100,000,000 for the competitive grant program under
section 13A of the Cooperative Forestry Assistance Act of 1978
(16 U.S.C. 2109a) for providing through that program grants to
support the participation of forest landowners who own less than
2,500 acres of forest land in emerging private markets for
climate mitigation or forest resilience, subject to the
condition that subsection (h) of that section shall not apply;
(4) $50,000,000 for the competitive grant program under
section 13A of the Cooperative Forestry Assistance Act of 1978
(16 U.S.C. 2109a) to provide grants to states and other eligible
entities to provide payments to owners of private forest land
for implementation of forestry practices on private forest land,
that are determined by the Secretary, based on the best
available science, to provide measurable increases in carbon
sequestration and storage beyond customary practices on
comparable land, subject to the conditions that--
(A) those payments shall not preclude landowners
from participation in other public and private sector
financial incentive programs; and
(B) subsection (h) of that section shall not apply;
and
[[Page 136 STAT. 2026]]
(5) $100,000,000 to provide grants under the wood innovation
grant program under section 8643 of the Agriculture Improvement
Act of 2018 (7 U.S.C. 7655d), including for the construction of
new facilities that advance the purposes of the program and for
the hauling of material removed to reduce hazardous fuels to
locations where that material can be utilized, subject to the
conditions that--
(A) the amount of such a grant shall be not more
than $5,000,000; and
(B) notwithstanding subsection (d) of that section,
a recipient of such a grant shall provide funds equal to
not less than 50 percent of the amount received under
the grant, to be derived from non-Federal sources.
(b) <<NOTE: Waiver. Contracts.>> Cost-sharing Requirement.--Any
partnership agreements, including cooperative agreements and mutual
interest agreements, using funds made available under this section shall
be subject to a non-Federal cost-share requirement of not less than 20
percent of the project cost, which may be waived at the discretion of
the Secretary.
(c) Limitations.--Nothing in this section shall be interpreted to
authorize funds of the Commodity Credit Corporation for activities under
this section if such funds are not expressly authorized or currently
expended for such purposes.
SEC. 23003. STATE AND PRIVATE FORESTRY CONSERVATION PROGRAMS.
(a) Appropriations.--In addition to amounts otherwise available,
there are appropriated to the Secretary for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, to remain available
until September 30, 2031--
(1) $700,000,000 to provide competitive grants to States
through the Forest Legacy Program established under section 7 of
the Cooperative Forestry Assistance Act of 1978 (16 U.S.C.
2103c) for projects for the acquisition of land and interests in
land; and
(2) $1,500,000,000 to provide multiyear, programmatic,
competitive grants to a State agency, a local governmental
entity, an agency or governmental entity of the District of
Columbia, an agency or governmental entity of an insular area
(as defined in section 1404 of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3103)), an Indian Tribe, or a nonprofit organization through the
Urban and Community Forestry Assistance program established
under section 9(c) of the Cooperative Forestry Assistance Act of
1978 (16 U.S.C. 2105(c)) for tree planting and related
activities.
(b) Waiver.--Any non-Federal cost-share requirement otherwise
applicable to projects carried out under this section may be waived at
the discretion of the Secretary.
SEC. 23004. LIMITATION.
The funds made available under this subtitle are subject to the
condition that the Secretary shall not--
(1) <<NOTE: Time periods.>> enter into any agreement--
(A) that is for a term extending beyond September
30, 2031; or
(B) under which any payment could be outlaid or
funds disbursed after September 30, 2031; or
[[Page 136 STAT. 2027]]
(2) use any other funds available to the Secretary to
satisfy obligations initially made under this subtitle.
SEC. 23005. ADMINISTRATIVE COSTS.
In addition to amounts otherwise available, there is appropriated to
the Secretary for fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $100,000,000 to remain available until September
30, 2031, for administrative costs of the agencies and offices of the
Department of Agriculture for costs related to implementing this
subtitle.
TITLE III--COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS
SEC. 30001. ENHANCED USE OF DEFENSE PRODUCTION ACT OF 1950.
In addition to amounts otherwise available, there is appropriated
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $500,000,000, to remain available until September 30,
2024, to carry out the Defense Production Act of 1950 (50 U.S.C. 4501 et
seq.).
SEC. 30002. IMPROVING ENERGY EFFICIENCY OR WATER EFFICIENCY OR
CLIMATE RESILIENCE OF AFFORDABLE
HOUSING.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary of Housing and Urban Development
(in this section referred to as the ``Secretary'') for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated--
(1) $837,500,000, to remain available until September 30,
2028, for the cost of providing direct loans, the costs of
modifying such loans, and for grants, as provided for and
subject to terms and conditions in subsection (b), including to
subsidize gross obligations for the principal amount of such
loans, not to exceed $4,000,000,000, to fund projects that
improve energy or water efficiency, enhance indoor air quality
or sustainability, implement the use of zero-emission
electricity generation, low-emission building materials or
processes, energy storage, or building electrification
strategies, or address climate resilience, of an eligible
property;
(2) $60,000,000, to remain available until September 30,
2030, for the costs to the Secretary for information technology,
research and evaluation, and administering and overseeing the
implementation of this section;
(3) $60,000,000, to remain available until September 30,
2029, for expenses of contracts or cooperative agreements
administered by the Secretary; and
(4) $42,500,000, to remain available until September 30,
2028, for energy and water benchmarking of properties eligible
to receive grants or loans under this section, regardless of
whether they actually received such grants or loans, along with
associated data analysis and evaluation at the property and
portfolio level, and the development of information technology
systems necessary for the collection, evaluation, and analysis
of such data.
(b) Loan and Grant Terms and Conditions.--Amounts made available
under this section shall be for direct loans, grants, and
[[Page 136 STAT. 2028]]
direct loans that can be converted to grants to eligible recipients that
agree to an extended period of affordability for the property.
(c) Definitions.--As used in this section--
(1) the term ``eligible recipient'' means any owner or
sponsor of an eligible property; and
(2) the term ``eligible property'' means a property assisted
pursuant to--
(A) section 202 of the Housing Act of 1959 (12
U.S.C. 1701q);
(B) section 202 of the Housing Act of 1959 (former
12 U.S.C. 1701q), as such section existed before the
enactment of the Cranston-Gonzalez National Affordable
Housing Act;
(C) section 811 of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 8013);
(D) section 8(b) of the United States Housing Act of
1937 (42 U.S.C. 1437f(b));
(E) section 236 of the National Housing Act (12
U.S.C. 1715z-1); or
(F) a Housing Assistance Payments contract for
Project-Based Rental Assistance in fiscal year 2021.
(d) Waiver.--The Secretary may waive or specify alternative
requirements for any provision of subsection (c) or (bb) of section 8 of
the United States Housing Act of 1937 (42 U.S.C. 1437f(c), 1437f(bb))
upon a finding that the waiver or alternative requirement is necessary
to facilitate the use of amounts made available under this section.
(e) <<NOTE: Notice. Requirements. Determination. Effective date.>>
Implementation.--The Secretary shall have the authority to establish by
notice any requirements that the Secretary determines are necessary for
timely and effective implementation of the program and expenditure of
funds appropriated, which requirements shall take effect upon issuance.
TITLE IV--COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
SEC. 40001. INVESTING IN COASTAL COMMUNITIES AND CLIMATE
RESILIENCE.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the National Oceanic and Atmospheric Administration
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $2,600,000,000, to remain available until September 30,
2026, to provide funding through direct expenditure, contracts, grants,
cooperative agreements, or technical assistance to coastal states (as
defined in paragraph (4) of section 304 of the Coastal Zone Management
Act of 1972 (16 U.S.C. 1453(4))), the District of Columbia, Tribal
Governments, nonprofit organizations, local governments, and
institutions of higher education (as defined in subsection (a) of
section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001(a))),
for the conservation, restoration, and protection of coastal and marine
habitats, resources, Pacific salmon and other marine fisheries, to
enable coastal communities to prepare for extreme storms and other
changing climate conditions, and for projects that support natural
resources that sustain coastal and marine resource dependent
[[Page 136 STAT. 2029]]
communities, marine fishery and marine mammal stock assessments, and for
related administrative expenses.
(b) Tribal Government Defined.--In this section, the term ``Tribal
Government'' means the recognized governing body of any Indian or Alaska
Native tribe, band, nation, pueblo, village, community, component band,
or component reservation, individually identified (including
parenthetically) in the list published most recently as of the date of
enactment of this subsection pursuant to section 104 of the Federally
Recognized Indian Tribe List Act of 1994 (25 U.S.C. 5131).
SEC. 40002. FACILITIES OF THE NATIONAL OCEANIC AND ATMOSPHERIC
ADMINISTRATION AND NATIONAL MARINE
SANCTUARIES.
(a) National Oceanic and Atmospheric Administration Facilities.--In
addition to amounts otherwise available, there is appropriated to the
National Oceanic and Atmospheric Administration for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated,
$150,000,000, to remain available until September 30, 2026, for the
construction of new facilities, facilities in need of replacement,
piers, marine operations facilities, and fisheries laboratories.
(b) National Marine Sanctuaries Facilities.--In addition to amounts
otherwise available, there is appropriated to the National Oceanic and
Atmospheric Administration for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $50,000,000, to remain available
until September 30, 2026, for the construction of facilities to support
the National Marine Sanctuary System established under subsection (c) of
section 301 of the National Marine Sanctuaries Act (16 U.S.C. 1431(c)).
SEC. 40003. NOAA EFFICIENT AND EFFECTIVE REVIEWS.
In addition to amounts otherwise available, there is appropriated
to the National Oceanic and Atmospheric Administration for fiscal year
2022, out of any money in the Treasury not otherwise appropriated,
$20,000,000, to remain available until September 30, 2026, to conduct
more efficient, accurate, and timely reviews for planning, permitting
and approval processes through the hiring and training of personnel, and
the purchase of technical and scientific services and new equipment, and
to improve agency transparency, accountability, and public engagement.
SEC. 40004. OCEANIC AND ATMOSPHERIC RESEARCH AND FORECASTING FOR
WEATHER AND CLIMATE.
(a) Forecasting and Research.--In addition to amounts otherwise
available, there is appropriated to the National Oceanic and Atmospheric
Administration for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, $150,000,000, to remain available until
September 30, 2026, to accelerate advances and improvements in research,
observation systems, modeling, forecasting, assessments, and
dissemination of information to the public as it pertains to ocean and
atmospheric processes related to weather, coasts, oceans, and climate,
and to carry out section 102(a) of the Weather Research and Forecasting
Innovation Act of 2017 (15 U.S.C. 8512(a)), and for related
administrative expenses.
(b) Research Grants and Science Information, Products, and
Services.--In addition to amounts otherwise available, there
[[Page 136 STAT. 2030]]
are appropriated to the National Oceanic and Atmospheric Administration
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, to remain available until September 30, 2026, $50,000,000
for competitive grants to fund climate research as it relates to
weather, ocean, coastal, and atmospheric processes and conditions, and
impacts to marine species and coastal habitat, and for related
administrative expenses.
SEC. 40005. COMPUTING CAPACITY AND RESEARCH FOR WEATHER, OCEANS,
AND CLIMATE.
In addition to amounts otherwise available, there is appropriated
to the National Oceanic and Atmospheric Administration for fiscal year
2022, out of any money in the Treasury not otherwise appropriated,
$190,000,000, to remain available until September 30, 2026, for the
procurement of additional high-performance computing, data processing
capacity, data management, and storage assets, to carry out section
204(a)(2) of the High-Performance Computing Act of 1991 (15 U.S.C.
5524(a)(2)), and for transaction agreements authorized under section
301(d)(1)(A) of the Weather Research and Forecasting Innovation Act of
2017 (15 U.S.C. 8531(d)(1)(A)), and for related administrative expenses.
SEC. 40006. ACQUISITION OF HURRICANE FORECASTING AIRCRAFT.
In addition to amounts otherwise available, there is appropriated to
the National Oceanic and Atmospheric Administration for fiscal year
2022, out of any money in the Treasury not otherwise appropriated,
$100,000,000, to remain available until September 30, 2026, for the
acquisition of hurricane hunter aircraft under section 413(a) of the
Weather Research and Forecasting Innovation Act of 2017 (15 U.S.C.
8549(a)).
SEC. 40007. <<NOTE: 49 USC 44504 note.>> ALTERNATIVE FUEL AND
LOW-EMISSION AVIATION TECHNOLOGY
PROGRAM.
(a) Appropriation and Establishment.--For purposes of establishing a
competitive grant program for eligible entities to carry out projects
located in the United States that produce, transport, blend, or store
sustainable aviation fuel, or develop, demonstrate, or apply low-
emission aviation technologies, in addition to amounts otherwise
available, there are appropriated to the Secretary for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated, to remain
available until September 30, 2026--
(1) $244,530,000 for projects relating to the production,
transportation, blending, or storage of sustainable aviation
fuel;
(2) $46,530,000 for projects relating to low-emission
aviation technologies; and
(3) $5,940,000 to fund the award of grants under this
section, and oversight of the program, by the Secretary.
(b) Considerations.--In carrying out subsection (a), the Secretary
shall consider, with respect to a proposed project--
(1) the capacity for the eligible entity to increase the
domestic production and deployment of sustainable aviation fuel
or the use of low-emission aviation technologies among the
United States commercial aviation and aerospace industry;
(2) the projected greenhouse gas emissions from such
project, including emissions resulting from the development of
the project, and the potential the project has to reduce
[[Page 136 STAT. 2031]]
or displace, on a lifecycle basis, United States greenhouse gas
emissions associated with air travel;
(3) the capacity to create new jobs and develop supply chain
partnerships in the United States;
(4) for projects related to the production of sustainable
aviation fuel, the projected lifecycle greenhouse gas emissions
benefits from the proposed project, which shall include
feedstock and fuel production and potential direct and indirect
greenhouse gas emissions (including resulting from changes in
land use); and
(5) the benefits of ensuring a diversity of feedstocks for
sustainable aviation fuel, including the use of waste carbon
oxides and direct air capture.
(c) Cost Share.--The Federal share of the cost of a project carried
out using grant funds under subsection (a) shall be 75 percent of the
total proposed cost of the project, except that such Federal share shall
increase to 90 percent of the total proposed cost of the project if the
eligible entity is a small hub airport or nonhub airport, as such terms
are defined in section 47102 of title 49, United States Code.
(d) <<NOTE: Deadline.>> Fuel Emissions Reduction Test.--For
purposes of clause (ii) of subsection (e)(7)(E), the Secretary shall,
not later than 2 years after the date of enactment of this section,
adopt at least 1 methodology for testing lifecycle greenhouse gas
emissions that meets the requirements of such clause.
(e) Definitions.--In this section:
(1) Eligible entity.--The term ``eligible entity'' means--
(A) a State or local government, including the
District of Columbia, other than an airport sponsor;
(B) an air carrier;
(C) an airport sponsor;
(D) an accredited institution of higher education;
(E) a research institution;
(F) a person or entity engaged in the production,
transportation, blending, or storage of sustainable
aviation fuel in the United States or feedstocks in the
United States that could be used to produce sustainable
aviation fuel;
(G) a person or entity engaged in the development,
demonstration, or application of low-emission aviation
technologies; or
(H) nonprofit entities or nonprofit consortia with
experience in sustainable aviation fuels, low-emission
aviation technologies, or other clean transportation
research programs.
(2) Feedstock.--The term ``feedstock'' means sources of
hydrogen and carbon not originating from unrefined or refined
petrochemicals.
(3) Induced land-use change values.--The term ``induced
land-use change values'' means the greenhouse gas emissions
resulting from the conversion of land to the production of
feedstocks and from the conversion of other land due to the
displacement of crops or animals for which the original land was
previously used.
(4) Lifecycle greenhouse gas emissions.--The term
``lifecycle greenhouse gas emissions'' means the combined
greenhouse gas emissions from feedstock production, collection
of
[[Page 136 STAT. 2032]]
feedstock, transportation of feedstock to fuel production
facilities, conversion of feedstock to fuel, transportation and
distribution of fuel, and fuel combustion in an aircraft engine,
as well as from induced land-use change values.
(5) Low-emission aviation technologies.--The term ``low-
emission aviation technologies'' means technologies, produced in
the United States, that significantly--
(A) improve aircraft fuel efficiency;
(B) increase utilization of sustainable aviation
fuel; or
(C) reduce greenhouse gas emissions produced during
operation of civil aircraft.
(6) Secretary.--The term ``Secretary'' means the Secretary
of Transportation.
(7) Sustainable aviation fuel.--The term ``sustainable
aviation fuel'' means liquid fuel, produced in the United
States, that--
(A) consists of synthesized hydrocarbons;
(B) meets the requirements of--
(i) ASTM International Standard D7566; or
(ii) the co-processing provisions of ASTM
International Standard D1655, Annex A1 (or such
successor standard);
(C) is derived from biomass (in a similar manner as
such term is defined in section 45K(c)(3) of the
Internal Revenue Code of 1986), waste streams, renewable
energy sources, or gaseous carbon oxides;
(D) is not derived from palm fatty acid distillates;
and
(E) <<NOTE: Determinations.>> achieves at least a
50 percent lifecycle greenhouse gas emissions reduction
in comparison with petroleum-based jet fuel, as
determined by a test that shows--
(i) the fuel production pathway achieves at
least a 50 percent reduction of the aggregate
attributional core lifecycle emissions and the
induced land-use change values under a lifecycle
methodology for sustainable aviation fuels similar
to that adopted by the International Civil
Aviation Organization with the agreement of the
United States; or
(ii) the fuel production pathway achieves at
least a 50 percent reduction of the aggregate
attributional core lifecycle greenhouse gas
emissions values and the induced land-use change
values under another methodology that the
Secretary determines is--
(I) reflective of the latest
scientific understanding of lifecycle
greenhouse gas emissions; and
(II) as stringent as the requirement
under clause (i).
[[Page 136 STAT. 2033]]
TITLE V--COMMITTEE ON ENERGY AND NATURAL RESOURCES
Subtitle A--Energy
PART 1--GENERAL PROVISIONS
SEC. 50111. <<NOTE: 42 USC 17113b note.>> DEFINITIONS.
In this subtitle:
(1) Greenhouse gas.--The term ``greenhouse gas'' has the
meaning given the term in section 1610(a) of the Energy Policy
Act of 1992 (42 U.S.C. 13389(a)).
(2) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(3) State.--The term ``State'' means a State, the District
of Columbia, and a United States Insular Area (as that term is
defined in section 50211).
(4) State energy office.--The term ``State energy office''
has the meaning given the term in section 124(a) of the Energy
Policy Act of 2005 (42 U.S.C. 15821(a)).
(5) State energy program.--The term ``State Energy Program''
means the State Energy Program established pursuant to part D of
title III of the Energy Policy and Conservation Act (42 U.S.C.
6321 through 6326).
PART 2--RESIDENTIAL EFFICIENCY AND ELECTRIFICATION REBATES
SEC. 50121. <<NOTE: 42 USC 18795.>> HOME ENERGY PERFORMANCE-
BASED, WHOLE-HOUSE REBATES.
(a) Appropriation.--
(1) In general.--In addition to amounts otherwise available,
there is appropriated to the Secretary for fiscal year 2022, out
of any money in the Treasury not otherwise appropriated,
$4,300,000,000, to remain available through September 30, 2031,
to carry out a program to award grants to State energy offices
to develop and implement a HOMES rebate program.
(2) Allocation of funds.--
(A) In general.--The Secretary shall reserve funds
made available under paragraph (1) for each State energy
office--
(i) <<NOTE: Effective date.>> in accordance
with the allocation formula for the State Energy
Program in effect on January 1, 2022; and
(ii) to be distributed to a State energy
office if the application of the State energy
office under subsection (b) is approved.
(B) <<NOTE: Deadline.>> Additional funds.--Not
earlier than 2 years after the date of enactment of this
Act, any money reserved under subparagraph (A) but not
distributed under clause (ii) of that subparagraph shall
be redistributed to the State energy offices operating a
HOMES rebate program using a grant received under this
section in proportion to the
[[Page 136 STAT. 2034]]
amount distributed to those State energy offices under
subparagraph (A)(ii).
(3) Administrative expenses.--Of the funds made available
under paragraph (1), the Secretary shall use not more than 3
percent for--
(A) administrative purposes; and
(B) providing technical assistance relating to
activities carried out under this section.
(b) <<NOTE: Grants. Plan.>> Application.--A State energy office
seeking a grant under this section shall submit to the Secretary an
application that includes a plan to implement a HOMES rebate program,
including a plan--
(1) <<NOTE: Procedures. Determination.>> to use procedures,
as approved by the Secretary, for determining the reductions in
home energy use resulting from the implementation of a home
energy efficiency retrofit that are calibrated to historical
energy usage for a home consistent with BPI 2400, for purposes
of modeled performance home rebates;
(2) to use open-source advanced measurement and verification
software, as approved by the Secretary, for determining and
documenting the monthly and hourly (if available) weather-
normalized energy use of a home before and after the
implementation of a home energy efficiency retrofit, for
purposes of measured performance home rebates;
(3) to value savings based on time, location, or greenhouse
gas emissions;
(4) <<NOTE: Certification.>> for quality monitoring to
ensure that each home energy efficiency retrofit for which a
rebate is provided is documented in a certificate that--
(A) is provided by the contractor and certified by a
third party to the homeowner; and
(B) details the work performed, the equipment and
materials installed, and the projected energy savings or
energy generation to support accurate valuation of the
retrofit;
(5) to provide a contractor performing a home energy
efficiency retrofit or an aggregator who has the right to claim
a rebate $200 for each home located in a disadvantaged community
that receives a home energy efficiency retrofit for which a
rebate is provided under the program; and
(6) to ensure that a homeowner or aggregator does not
receive a rebate for the same upgrade through both a HOMES
rebate program and any other Federal grant or rebate program,
pursuant to subsection (c)(7).
(c) HOMES Rebate Program.--
(1) <<NOTE: Effective date. Deadline.>> In general.--A
HOMES rebate program carried out by a State energy office
receiving a grant pursuant to this section shall provide rebates
to homeowners and aggregators for whole-house energy saving
retrofits begun on or after the date of enactment of this Act
and completed by not later than September 30, 2031.
(2) Amount of rebate.--Subject to paragraph (3), under a
HOMES rebate program, the amount of a rebate shall not exceed--
(A) for individuals and aggregators carrying out
energy efficiency upgrades of single-family homes--
[[Page 136 STAT. 2035]]
(i) in the case of a retrofit that achieves
modeled energy system savings of not less than 20
percent but less than 35 percent, the lesser of--
(I) $2,000; and
(II) 50 percent of the project cost;
(ii) in the case of a retrofit that achieves
modeled energy system savings of not less than 35
percent, the lesser of--
(I) $4,000; and
(II) 50 percent of the project cost;
and
(iii) for measured energy savings, in the case
of a home or portfolio of homes that achieves
energy savings of not less than 15 percent--
(I) a payment rate per kilowatt hour
saved, or kilowatt hour-equivalent
saved, equal to $2,000 for a 20 percent
reduction of energy use for the average
home in the State; or
(II) 50 percent of the project cost;
(B) for multifamily building owners and aggregators
carrying out energy efficiency upgrades of multifamily
buildings--
(i) in the case of a retrofit that achieves
modeled energy system savings of not less than 20
percent but less than 35 percent, $2,000 per
dwelling unit, with a maximum of $200,000 per
multifamily building;
(ii) in the case of a retrofit that achieves
modeled energy system savings of not less than 35
percent, $4,000 per dwelling unit, with a maximum
of $400,000 per multifamily building; or
(iii) for measured energy savings, in the case
of a multifamily building or portfolio of
multifamily buildings that achieves energy savings
of not less than 15 percent--
(I) a payment rate per kilowatt hour
saved, or kilowatt hour-equivalent
saved, equal to $2,000 for a 20 percent
reduction of energy use per dwelling
unit for the average multifamily
building in the State; or
(II) 50 percent of the project cost;
and
(C) for individuals and aggregators carrying out
energy efficiency upgrades of a single-family home
occupied by a low- or moderate-income household or a
multifamily building not less than 50 percent of the
dwelling units of which are occupied by low- or
moderate-income households--
(i) in the case of a retrofit that achieves
modeled energy system savings of not less than 20
percent but less than 35 percent, the lesser of--
(I) $4,000 per single-family home or
dwelling unit; and
(II) 80 percent of the project cost;
(ii) in the case of a retrofit that achieves
modeled energy system savings of not less than 35
percent, the lesser of--
(I) $8,000 per single-family home or
dwelling unit; and
(II) 80 percent of the project cost;
and
[[Page 136 STAT. 2036]]
(iii) for measured energy savings, in the case
of a single-family home, multifamily building, or
portfolio of single-family homes or multifamily
buildings that achieves energy savings of not less
than 15 percent--
(I) a payment rate per kilowatt hour
saved, or kilowatt hour-equivalent
saved, equal to $4,000 for a 20 percent
reduction of energy use per single-
family home or dwelling unit, as
applicable, for the average single-
family home or multifamily building in
the State; or
(II) 80 percent of the project cost.
(3) Rebates to low- or moderate-income households.--On
approval from the Secretary, notwithstanding paragraph (2), a
State energy office carrying out a HOMES rebate program using a
grant awarded pursuant to this section may increase rebate
amounts for low- or moderate-income households.
(4) Use of funds.--A State energy office that receives a
grant pursuant to this section may use not more than 20 percent
of the grant amount for planning, administration, or technical
assistance related to a HOMES rebate program.
(5) <<NOTE: Publication.>> Data access guidelines.--The
Secretary shall develop and publish guidelines for States
relating to residential electric and natural gas energy data
sharing.
(6) Exemption.--Activities carried out by a State energy
office using a grant awarded pursuant to this section shall not
be subject to the expenditure prohibitions and limitations
described in section 420.18 of title 10, Code of Federal
Regulations.
(7) Prohibition on combining rebates.--A rebate provided by
a State energy office under a HOMES rebate program may not be
combined with any other Federal grant or rebate, including a
rebate provided under a high-efficiency electric home rebate
program (as defined in section 50122(d)), for the same single
upgrade.
(d) Definitions.--In this section:
(1) Disadvantaged community.--The term ``disadvantaged
community'' means a community that the Secretary determines,
based on appropriate data, indices, and screening tools, is
economically, socially, or environmentally disadvantaged.
(2) HOMES rebate program.--The term ``HOMES rebate program''
means a Home Owner Managing Energy Savings rebate program
established by a State energy office as part of an approved
State energy conservation plan under the State Energy Program.
(3) Low- or moderate-income household.--The term ``low- or
moderate-income household'' means an individual or family the
total annual income of which is less than 80 percent of the
median income of the area in which the individual or family
resides, as reported by the Department of Housing and Urban
Development, including an individual or family that has
demonstrated eligibility for another Federal program with income
restrictions equal to or below 80 percent of area median income.
SEC. 50122. <<NOTE: 42 USC 18795a.>> HIGH-EFFICIENCY ELECTRIC
HOME REBATE PROGRAM.
(a) Appropriations.--
[[Page 136 STAT. 2037]]
(1) Funds to state energy offices and indian tribes.--In
addition to amounts otherwise available, there is appropriated
to the Secretary for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, to carry out a program--
(A) to award grants to State energy offices to
develop and implement a high-efficiency electric home
rebate program in accordance with subsection (c),
$4,275,000,000, to remain available through September
30, 2031; and
(B) to award grants to Indian Tribes to develop and
implement a high-efficiency electric home rebate program
in accordance with subsection (c), $225,000,000, to
remain available through September 30, 2031.
(2) Allocation of funds.--
(A) State energy offices.--The Secretary shall
reserve funds made available under paragraph (1)(A) for
each State energy office--
(i) <<NOTE: Effective date.>> in accordance
with the allocation formula for the State Energy
Program in effect on January 1, 2022; and
(ii) to be distributed to a State energy
office if the application of the State energy
office under subsection (b) is approved.
(B) Indian tribes.--The Secretary shall reserve
funds made available under paragraph (1)(B)--
(i) in a manner determined appropriate by the
Secretary; and
(ii) to be distributed to an Indian Tribe if
the application of the Indian Tribe under
subsection (b) is approved.
(C) <<NOTE: Deadline.>> Additional funds.--Not
earlier than 2 years after the date of enactment of this
Act, any money reserved under--
(i) subparagraph (A) but not distributed under
clause (ii) of that subparagraph shall be
redistributed to the State energy offices
operating a high-efficiency electric home rebate
program in proportion to the amount distributed to
those State energy offices under that clause; and
(ii) subparagraph (B) but not distributed
under clause (ii) of that subparagraph shall be
redistributed to the Indian Tribes operating a
high-efficiency electric home rebate program in
proportion to the amount distributed to those
Indian Tribes under that clause.
(3) Administrative expenses.--Of the funds made available
under paragraph (1), the Secretary shall use not more than 3
percent for--
(A) administrative purposes; and
(B) providing technical assistance relating to
activities carried out under this section.
(b) <<NOTE: Plans.>> Application.--A State energy office or Indian
Tribe seeking a grant under the program shall submit to the Secretary an
application that includes a plan to implement a high-efficiency electric
home rebate program, including--
(1) <<NOTE: Verification.>> a plan to verify the income
eligibility of eligible entities seeking a rebate for a
qualified electrification project;
[[Page 136 STAT. 2038]]
(2) a plan to allow rebates for qualified electrification
projects at the point of sale in a manner that ensures that the
income eligibility of an eligible entity seeking a rebate may be
verified at the point of sale;
(3) a plan to ensure that an eligible entity does not
receive a rebate for the same qualified electrification project
through both a high-efficiency electric home rebate program and
any other Federal grant or rebate program, pursuant to
subsection (c)(8); and
(4) any additional information that the Secretary may
require.
(c) High-efficiency Electric Home Rebate Program.--
(1) <<NOTE: Grants.>> In general.--Under the program, the
Secretary shall award grants to State energy offices and Indian
Tribes to establish a high-efficiency electric home rebate
program under which rebates shall be provided to eligible
entities for qualified electrification projects.
(2) Guidelines.--The Secretary shall prescribe guidelines
for high-efficiency electric home rebate programs, including
guidelines for providing point of sale rebates in a manner
consistent with the income eligibility requirements under this
section.
(3) Amount of rebate.--
(A) Appliance upgrades.--The amount of a rebate
provided under a high-efficiency electric home rebate
program for the purchase of an appliance under a
qualified electrification project shall be--
(i) not more than $1,750 for a heat pump water
heater;
(ii) not more than $8,000 for a heat pump for
space heating or cooling; and
(iii) not more than $840 for--
(I) an electric stove, cooktop,
range, or oven; or
(II) an electric heat pump clothes
dryer.
(B) Nonappliance upgrades.--The amount of a rebate
provided under a high-efficiency electric home rebate
program for the purchase of a nonappliance upgrade under
a qualified electrification project shall be--
(i) not more than $4,000 for an electric load
service center upgrade;
(ii) not more than $1,600 for insulation, air
sealing, and ventilation; and
(iii) not more than $2,500 for electric
wiring.
(C) Maximum rebate.--An eligible entity receiving
multiple rebates under this section may receive not more
than a total of $14,000 in rebates.
(4) Limitations.--A rebate provided using funding under this
section shall not exceed--
(A) in the case of an eligible entity described in
subsection (d)(1)(A)--
(i) 50 percent of the cost of the qualified
electrification project for a household the annual
income of which is not less than 80 percent and
not greater than 150 percent of the area median
income; and
(ii) 100 percent of the cost of the qualified
electrification project for a household the annual
income
[[Page 136 STAT. 2039]]
of which is less than 80 percent of the area
median income;
(B) in the case of an eligible entity described in
subsection (d)(1)(B)--
(i) 50 percent of the cost of the qualified
electrification project for a multifamily building
not less than 50 percent of the residents of which
are households the annual income of which is not
less than 80 percent and not greater than 150
percent of the area median income; and
(ii) 100 percent of the cost of the qualified
electrification project for a multifamily building
not less than 50 percent of the residents of which
are households the annual income of which is less
than 80 percent of the area median income; or
(C) in the case of an eligible entity described in
subsection (d)(1)(C)--
(i) 50 percent of the cost of the qualified
electrification project for a household--
(I) on behalf of which the eligible
entity is working; and
(II) the annual income of which is
not less than 80 percent and not greater
than 150 percent of the area median
income; and
(ii) 100 percent of the cost of the qualified
electrification project for a household--
(I) on behalf of which the eligible
entity is working; and
(II) the annual income of which is
less than 80 percent of the area median
income.
(5) Amount for installation of upgrades.--
(A) In general.--In the case of an eligible entity
described in subsection (d)(1)(C) that receives a rebate
under the program and performs the installation of the
applicable qualified electrification project, a State
energy office or Indian Tribe shall provide to that
eligible entity, in addition to the rebate, an amount
that--
(i) does not exceed $500; and
(ii) <<NOTE: Determination.>> is commensurate
with the scale of the upgrades installed as part
of the qualified electrification project, as
determined by the Secretary.
(B) Treatment.--An amount received under
subparagraph (A) by an eligible entity described in that
subparagraph shall not be subject to the requirement
under paragraph (6).
(6) Requirement.--An eligible entity described in
subparagraph (C) of subsection (d)(1) shall discount the amount
of a rebate received for a qualified electrification project
from any amount charged by that eligible entity to the eligible
entity described in subparagraph (A) or (B) of that subsection
on behalf of which the qualified electrification project is
carried out.
(7) Exemption.--Activities carried out by a State energy
office using a grant provided under the program shall not be
subject to the expenditure prohibitions and limitations
described in section 420.18 of title 10, Code of Federal
Regulations.
[[Page 136 STAT. 2040]]
(8) Prohibition on combining rebates.--A rebate provided by
a State energy office or Indian Tribe under a high-efficiency
electric home rebate program may not be combined with any other
Federal grant or rebate, including a rebate provided under a
HOMES rebate program (as defined in section 50121(d)), for the
same qualified electrification project.
(9) Administrative costs.--A State energy office or Indian
Tribe that receives a grant under the program shall use not more
than 20 percent of the grant amount for planning,
administration, or technical assistance relating to a high-
efficiency electric home rebate program.
(d) Definitions.--In this section:
(1) Eligible entity.--The term ``eligible entity'' means--
(A) a low- or moderate-income household;
(B) an individual or entity that owns a multifamily
building not less than 50 percent of the residents of
which are low- or moderate-income households; and
(C) <<NOTE: Determination.>> a governmental,
commercial, or nonprofit entity, as determined by the
Secretary, carrying out a qualified electrification
project on behalf of an entity described in subparagraph
(A) or (B).
(2) High-efficiency electric home rebate program.--The term
``high-efficiency electric home rebate program'' means a rebate
program carried out by a State energy office or Indian Tribe
pursuant to subsection (c) using a grant received under the
program.
(3) Indian tribe.--The term ``Indian Tribe'' has the meaning
given the term in section 4 of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 5304).
(4) Low- or moderate-income household.--The term ``low- or
moderate-income household'' means an individual or family the
total annual income of which is less than 150 percent of the
median income of the area in which the individual or family
resides, as reported by the Department of Housing and Urban
Development, including an individual or family that has
demonstrated eligibility for another Federal program with income
restrictions equal to or below 150 percent of area median
income.
(5) Program.--The term ``program'' means the program carried
out by the Secretary under subsection (a)(1).
(6) Qualified electrification project.--
(A) In general.--The term ``qualified
electrification project'' means a project that--
(i) includes the purchase and installation
of--
(I) an electric heat pump water
heater;
(II) an electric heat pump for space
heating and cooling;
(III) an electric stove, cooktop,
range, or oven;
(IV) an electric heat pump clothes
dryer;
(V) an electric load service center;
(VI) insulation;
(VII) air sealing and materials to
improve ventilation; or
(VIII) electric wiring;
(ii) with respect to any appliance described
in clause (i), the purchase of which is carried
out--
(I) as part of new construction;
[[Page 136 STAT. 2041]]
(II) to replace a nonelectric
appliance; or
(III) as a first-time purchase with
respect to that appliance; and
(iii) is carried out at, or relating to, a
single-family home or multifamily building, as
applicable and defined by the Secretary.
(B) Exclusions.--The term ``qualified
electrification project'' does not include any project
with respect to which the appliance, system, equipment,
infrastructure, component, or other item described in
subclauses (I) through (VIII) of subparagraph (A)(i) is
not certified under the Energy Star program established
by section 324A of the Energy Policy and Conservation
Act (42 U.S.C. 6294a), if applicable.
SEC. 50123. <<NOTE: 42 USC 18795b.>> STATE-BASED HOME ENERGY
EFFICIENCY CONTRACTOR TRAINING GRANTS.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, $200,000,000, to
remain available through September 30, 2031, to carry out a program to
provide financial assistance to States to develop and implement a State
program described in section 362(d)(13) of the Energy Policy and
Conservation Act (42 U.S.C. 6322(d)(13)), which shall provide training
and education to contractors involved in the installation of home energy
efficiency and electrification improvements, including improvements
eligible for rebates under a HOMES rebate program (as defined in section
50121(d)) or a high-efficiency electric home rebate program (as defined
in section 50122(d)), as part of an approved State energy conservation
plan under the State Energy Program.
(b) Use of Funds.--A State may use amounts received under subsection
(a)--
(1) to reduce the cost of training contractor employees;
(2) to provide testing and certification of contractors
trained and educated under a State program developed and
implemented pursuant to subsection (a); and
(3) to partner with nonprofit organizations to develop and
implement a State program pursuant to subsection (a).
(c) Administrative Expenses.--Of the amounts received by a State
under subsection (a), a State shall use not more than 10 percent for
administrative expenses associated with developing and implementing a
State program pursuant to that subsection.
PART 3--BUILDING EFFICIENCY AND RESILIENCE
SEC. 50131. ASSISTANCE FOR LATEST AND ZERO BUILDING ENERGY CODE
ADOPTION.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated--
(1) $330,000,000, to remain available through September 30,
2029, to carry out activities under part D of title III of the
Energy Policy and Conservation Act (42 U.S.C. 6321 through 6326)
in accordance with subsection (b); and
[[Page 136 STAT. 2042]]
(2) $670,000,000, to remain available through September 30,
2029, to carry out activities under part D of title III of the
Energy Policy and Conservation Act (42 U.S.C. 6321 through 6326)
in accordance with subsection (c).
(b) <<NOTE: Grants.>> Latest Building Energy Code.--The Secretary
shall use funds made available under subsection (a)(1) for grants to
assist States, and units of local government that have authority to
adopt building codes--
(1) to adopt--
(A) a building energy code (or codes) for
residential buildings that meets or exceeds the 2021
International Energy Conservation Code, or achieves
equivalent or greater energy savings;
(B) a building energy code (or codes) for commercial
buildings that meets or exceeds the ANSI/ASHRAE/IES
Standard 90.1-2019, or achieves equivalent or greater
energy savings; or
(C) any combination of building energy codes
described in subparagraph (A) or (B); and
(2) <<NOTE: Plan.>> to implement a plan for the
jurisdiction to achieve full compliance with any building energy
code adopted under paragraph (1) in new and renovated
residential or commercial buildings, as applicable, which plan
shall include active training and enforcement programs and
measurement of the rate of compliance each year.
(c) <<NOTE: Grants.>> Zero Energy Code.--The Secretary shall use
funds made available under subsection (a)(2) for grants to assist
States, and units of local government that have authority to adopt
building codes--
(1) to adopt a building energy code (or codes) for
residential and commercial buildings that meets or exceeds the
zero energy provisions in the 2021 International Energy
Conservation Code or an equivalent stretch code; and
(2) <<NOTE: Plan.>> to implement a plan for the
jurisdiction to achieve full compliance with any building energy
code adopted under paragraph (1) in new and renovated
residential and commercial buildings, which plan shall include
active training and enforcement programs and measurement of the
rate of compliance each year.
(d) State Match.--The State cost share requirement under the item
relating to ``Department of Energy--Energy Conservation'' in title II of
the Department of the Interior and Related Agencies Appropriations Act,
1985 (42 U.S.C. 6323a; 98 Stat. 1861), shall not apply to assistance
provided under this section.
(e) Administrative Costs.--Of the amounts made available under this
section, the Secretary shall reserve not more than 5 percent for
administrative costs necessary to carry out this section.
PART 4--DOE LOAN AND GRANT PROGRAMS
SEC. 50141. FUNDING FOR DEPARTMENT OF ENERGY LOAN PROGRAMS OFFICE.
(a) Commitment Authority.--In addition to commitment authority
otherwise available and previously provided, the Secretary may make
commitments to guarantee loans for eligible projects under section 1703
of the Energy Policy Act of 2005 (42 U.S.C.
[[Page 136 STAT. 2043]]
16513), up to a total principal amount of $40,000,000,000, to remain
available through September 30, 2026.
(b) Appropriation.--In addition to amounts otherwise available and
previously provided, there is appropriated to the Secretary for fiscal
year 2022, out of any money in the Treasury not otherwise appropriated,
$3,600,000,000, to remain available through September 30, 2026, for the
costs of guarantees made under section 1703 of the Energy Policy Act of
2005 (42 U.S.C. 16513), using the loan guarantee authority provided
under subsection (a) of this section.
(c) Administrative Expenses.--Of the amount made available under
subsection (b), the Secretary shall reserve not more than 3 percent for
administrative expenses to carry out title XVII of the Energy Policy Act
of 2005 and for carrying out section 1702(h)(3) of such Act (42 U.S.C.
16512(h)(3)).
(d) Limitations.--
(1) <<NOTE: President. Compliance.>> Certification.--None
of the amounts made available under this section for loan
guarantees shall be available for any project unless the
President has certified in advance in writing that the loan
guarantee and the project comply with the provisions under this
section.
(2) Denial of double benefit.--Except as provided in
paragraph (3), none of the amounts made available under this
section for loan guarantees shall be available for commitments
to guarantee loans for any projects under which funds,
personnel, or property (tangible or intangible) of any Federal
agency, instrumentality, personnel, or affiliated entity are
expected to be used (directly or indirectly) through
acquisitions, contracts, demonstrations, exchanges, grants,
incentives, leases, procurements, sales, other transaction
authority, or other arrangements to support the project or to
obtain goods or services from the project.
(3) Exception.--Paragraph (2) shall not preclude the use of
the loan guarantee authority provided under this section for
commitments to guarantee loans for--
(A) projects benefitting from otherwise allowable
Federal tax benefits;
(B) projects benefitting from being located on
Federal land pursuant to a lease or right-of-way
agreement for which all consideration for all uses is--
(i) paid exclusively in cash;
(ii) deposited in the Treasury as offsetting
receipts; and
(iii) equal to the fair market value;
(C) projects benefitting from the Federal insurance
program under section 170 of the Atomic Energy Act of
1954 (42 U.S.C. 2210); or
(D) electric generation projects using transmission
facilities owned or operated by a Federal Power
Marketing Administration or the Tennessee Valley
Authority that have been authorized, approved, and
financed independent of the project receiving the
guarantee.
(e) Guarantee.--Section 1701(4)(A) of the Energy Policy Act of 2005
(42 U.S.C. 16511(4)(A)) is amended by inserting ``, except that a loan
guarantee may guarantee any debt obligation of a non-Federal borrower to
any Eligible Lender (as defined in section
[[Page 136 STAT. 2044]]
609.2 of title 10, Code of Federal Regulations)'' before the period at
the end.
(f) Source of Payments.--Section 1702(b) of the Energy Policy Act of
2005 (42 U.S.C. 16512(b)(2)) is amended by adding at the end the
following:
``(3) Source of payments.--The source of a payment received
from a borrower under subparagraph (A) or (B) of paragraph (2)
may not be a loan or other debt obligation that is made or
guaranteed by the Federal Government.''.
SEC. 50142. ADVANCED TECHNOLOGY VEHICLE MANUFACTURING.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, $3,000,000,000, to
remain available through September 30, 2028, for the costs of providing
direct loans under section 136(d) of the Energy Independence and
Security Act of 2007 (42 U.S.C. 17013(d)): Provided, That funds
appropriated by this section may be used for the costs of providing
direct loans for reequipping, expanding, or establishing a manufacturing
facility in the United States to produce, or for engineering integration
performed in the United States of, advanced technology vehicles
described in subparagraph (C), (D), (E), or (F) of section 136(a)(1) of
such Act (42 U.S.C. 17013(a)(1)) only if such advanced technology
vehicles emit, under any possible operational mode or condition, low or
zero exhaust emissions of greenhouse gases.
(b) Administrative Costs.--The Secretary shall reserve not more than
$25,000,000 of amounts made available under subsection (a) for
administrative costs of providing loans as described in subsection (a).
(c) Elimination of Loan Program Cap.--Section 136(d)(1) of the
Energy Independence and Security Act of 2007 (42 U.S.C. 17013(d)(1)) is
amended by striking ``a total of not more than $25,000,000,000 in''.
SEC. 50143. DOMESTIC MANUFACTURING CONVERSION GRANTS.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, $2,000,000,000, to
remain available through September 30, 2031, to provide grants for
domestic production of efficient hybrid, plug-in electric hybrid, plug-
in electric drive, and hydrogen fuel cell electric vehicles, in
accordance with section 712 of the Energy Policy Act of 2005 (42 U.S.C.
16062).
(b) <<NOTE: Requirement.>> Cost Share.--The Secretary shall require
a recipient of a grant provided under subsection (a) to provide not less
than 50 percent of the cost of the project carried out using the grant.
(c) Administrative Costs.--The Secretary shall reserve not more than
3 percent of amounts made available under subsection (a) for
administrative costs of making grants described in such subsection (a)
pursuant to section 712 of the Energy Policy Act of 2005 (42 U.S.C.
16062).
SEC. 50144. ENERGY INFRASTRUCTURE REINVESTMENT FINANCING.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, $5,000,000,000, to
remain available through September 30, 2026,
[[Page 136 STAT. 2045]]
to carry out activities under section 1706 of the Energy Policy Act of
2005.
(b) <<NOTE: Time period. Applicability.>> Commitment Authority.--
The Secretary may make, through September 30, 2026, commitments to
guarantee loans for projects under section 1706 of the Energy Policy Act
of 2005 the total principal amount of which is not greater than
$250,000,000,000, subject to the limitations that apply to loan
guarantees under section 50141(d).
(c) Energy Infrastructure Reinvestment Financing.--Title XVII of the
Energy Policy Act of 2005 is amended by inserting after section 1705 (42
U.S.C. 16516) the following:
``SEC. 1706. <<NOTE: 42 USC 16517.>> ENERGY INFRASTRUCTURE
REINVESTMENT FINANCING.
``(a) In General.--Notwithstanding section 1703, the Secretary may
make guarantees, including refinancing, under this section only for
projects that--
``(1) retool, repower, repurpose, or replace energy
infrastructure that has ceased operations; or
``(2) enable operating energy infrastructure to avoid,
reduce, utilize, or sequester air pollutants or anthropogenic
emissions of greenhouse gases.
``(b) Inclusion.--A project under subsection (a) may include the
remediation of environmental damage associated with energy
infrastructure.
``(c) Requirement.--A project under subsection (a)(1) that involves
electricity generation through the use of fossil fuels shall be required
to have controls or technologies to avoid, reduce, utilize, or sequester
air pollutants and anthropogenic emissions of greenhouse gases.
``(d) Application.--To apply for a guarantee under this section, an
applicant shall submit to the Secretary an application at such time, in
such manner, and containing such information as the Secretary may
require, including--
``(1) <<NOTE: Plan.>> a detailed plan describing the
proposed project;
``(2) <<NOTE: Analysis.>> an analysis of how the proposed
project will engage with and affect associated communities; and
``(3) in the case of an applicant that is an electric
utility, an assurance that the electric utility shall pass on
any financial benefit from the guarantee made under this section
to the customers of, or associated communities served by, the
electric utility.
``(e) <<NOTE: Requirement. Time period.>> Term.--Notwithstanding
section 1702(f), the term of an obligation shall require full repayment
over a period not to exceed 30 years.
``(f) Definition of Energy Infrastructure.--In this section, the
term `energy infrastructure' means a facility, and associated equipment,
used for--
``(1) the generation or transmission of electric energy; or
``(2) the production, processing, and delivery of fossil
fuels, fuels derived from petroleum, or petrochemical
feedstocks.''.
(d) Conforming Amendment.--Section 1702(o)(3) of the Energy Policy
Act of 2005 (42 U.S.C. 16512(o)(3)) is amended by inserting ``and
projects described in section 1706(a)'' before the period at the end.
SEC. 50145. TRIBAL ENERGY LOAN GUARANTEE PROGRAM.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary for fiscal year 2022,
[[Page 136 STAT. 2046]]
out of any money in the Treasury not otherwise appropriated,
$75,000,000, to remain available through September 30, 2028, to carry
out section 2602(c) of the Energy Policy Act of 1992 (25 U.S.C.
3502(c)), subject to the limitations that apply to loan guarantees under
section 50141(d).
(b) Department of Energy Tribal Energy Loan Guarantee Program.--
Section 2602(c) of the Energy Policy Act of 1992 (25 U.S.C. 3502(c)) is
amended--
(1) in paragraph (1), by striking ``) for an amount equal to
not more than 90 percent of'' and inserting ``, except that a
loan guarantee may guarantee any debt obligation of a non-
Federal borrower to any Eligible Lender (as defined in section
609.2 of title 10, Code of Federal Regulations)) for''; and
(2) in paragraph (4), by striking ``$2,000,000,000'' and
inserting ``$20,000,000,000''.
PART 5--ELECTRIC TRANSMISSION
SEC. 50151. <<NOTE: 42 USC 18715.>> TRANSMISSION FACILITY
FINANCING.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, $2,000,000,000, to
remain available through September 30, 2030, to carry out this section:
Provided, That the Secretary shall not enter into any loan agreement
pursuant to this section that could result in disbursements after
September 30, 2031.
(b) <<NOTE: Determination.>> Use of Funds.--The Secretary shall use
the amounts made available by subsection (a) to carry out a program to
pay the costs of direct loans to non-Federal borrowers, subject to the
limitations that apply to loan guarantees under section 50141(d) and
under such terms and conditions as the Secretary determines to be
appropriate, for the construction or modification of electric
transmission facilities designated by the Secretary to be necessary in
the national interest under section 216(a) of the Federal Power Act (16
U.S.C. 824p(a)).
(c) Loans.--A direct loan provided under this section--
(1) shall have a term that does not exceed the lesser of--
(A) 90 percent of the projected useful life, in
years, of the eligible transmission facility; and
(B) 30 years;
(2) shall not exceed 80 percent of the project costs; and
(3) shall, on first issuance, be subject to the condition
that the direct loan is not subordinate to other financing.
(d) <<NOTE: Determination.>> Interest Rates.--A direct loan
provided under this section shall bear interest at a rate determined by
the Secretary, taking into consideration market yields on outstanding
marketable obligations of the United States of comparable maturities as
of the date on which the direct loan is made.
(e) Definition of Direct Loan.--In this section, the term ``direct
loan'' has the meaning given the term in section 502 of the Federal
Credit Reform Act of 1990 (2 U.S.C. 661a).
SEC. 50152. <<NOTE: 42 USC 18715a.>> GRANTS TO FACILITATE THE
SITING OF INTERSTATE ELECTRICITY
TRANSMISSION LINES.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated,
[[Page 136 STAT. 2047]]
$760,000,000, to remain available through September 30, 2029, for making
grants in accordance with this section and for administrative expenses
associated with carrying out this section.
(b) Use of Funds.--
(1) In general.--The Secretary may make a grant under this
section to a siting authority for, with respect to a covered
transmission project, any of the following activities:
(A) Studies and analyses of the impacts of the
covered transmission project.
(B) Examination of up to 3 alternate siting
corridors within which the covered transmission project
feasibly could be sited.
(C) Participation by the siting authority in
regulatory proceedings or negotiations in another
jurisdiction, or under the auspices of a Transmission
Organization (as defined in section 3 of the Federal
Power Act (16 U.S.C. 796)) that is also considering the
siting or permitting of the covered transmission
project.
(D) Participation by the siting authority in
regulatory proceedings at the Federal Energy Regulatory
Commission or a State regulatory commission for
determining applicable rates and cost allocation for the
covered transmission project.
(E) Other measures and actions that may improve the
chances of, and shorten the time required for, approval
by the siting authority of the application relating to
the siting or permitting of the covered transmission
project, as the Secretary determines appropriate.
(2) Economic development.--The Secretary may make a grant
under this section to a siting authority, or other State, local,
or Tribal governmental entity, for economic development
activities for communities that may be affected by the
construction and operation of a covered transmission project,
provided that the Secretary shall not enter into any grant
agreement pursuant to this section that could result in any
outlays after September 30, 2031.
(c) Conditions.--
(1) <<NOTE: Requirement. Deadline.>> Final decision on
application.--In order to receive a grant for an activity
described in subsection (b)(1), the Secretary shall require a
siting authority to agree, in writing, to reach a final decision
on the application relating to the siting or permitting of the
applicable covered transmission project not later than 2 years
after the date on which such grant is provided, unless the
Secretary authorizes an extension for good cause.
(2) Federal share.--The Federal share of the cost of an
activity described in subparagraph (C) or (D) of subsection
(b)(1) shall not exceed 50 percent.
(3) <<NOTE: Disbursement.>> Economic development.--The
Secretary may only disburse grant funds for economic development
activities under subsection (b)(2)--
(A) to a siting authority upon approval by the
siting authority of the applicable covered transmission
project; and
(B) to any other State, local, or Tribal
governmental entity upon commencement of construction of
the applicable
[[Page 136 STAT. 2048]]
covered transmission project in the area under the
jurisdiction of the entity.
(d) <<NOTE: Deadline.>> Returning Funds.--If a siting authority
that receives a grant for an activity described in subsection (b)(1)
fails to use all grant funds within 2 years of receipt, the siting
authority shall return to the Secretary any such unused funds.
(e) Definitions.--In this section:
(1) Covered transmission project.--The term ``covered
transmission project'' means a high-voltage interstate or
offshore electricity transmission line--
(A) that is proposed to be constructed and to
operate--
(i) at a minimum of 275 kilovolts of either
alternating-current or direct-current electric
energy by an entity; or
(ii) offshore and at a minimum of 200
kilovolts of either alternating-current or direct-
current electric energy by an entity; and
(B) for which such entity has applied, or informed a
siting authority of such entity's intent to apply, for
regulatory approval.
(2) Siting authority.--The term ``siting authority'' means a
State, local, or Tribal governmental entity with authority to
make a final determination regarding the siting, permitting, or
regulatory status of a covered transmission project that is
proposed to be located in an area under the jurisdiction of the
entity.
SEC. 50153. <<NOTE: 42 USC 18715b.>> INTERREGIONAL AND OFFSHORE
WIND ELECTRICITY TRANSMISSION
PLANNING, MODELING, AND ANALYSIS.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, $100,000,000, to
remain available through September 30, 2031, to carry out this section.
(b) Use of Funds.--The Secretary shall use amounts made available
under subsection (a)--
(1) to pay expenses associated with convening relevant
stakeholders to address the development of interregional
electricity transmission and transmission of electricity that is
generated by offshore wind; and
(2) <<NOTE: Determination.>> to conduct planning, modeling,
and analysis regarding interregional electricity transmission
and transmission of electricity that is generated by offshore
wind, taking into account the local, regional, and national
economic, reliability, resilience, security, public policy, and
environmental benefits of interregional electricity transmission
and transmission of electricity that is generated by offshore
wind, including planning, modeling, and analysis, as the
Secretary determines appropriate, pertaining to--
(A) clean energy integration into the electric grid,
including the identification of renewable energy zones;
(B) the effects of changes in weather due to climate
change on the reliability and resilience of the electric
grid;
(C) cost allocation methodologies that facilitate
the expansion of the bulk power system;
[[Page 136 STAT. 2049]]
(D) the benefits of coordination between generator
interconnection processes and transmission planning
processes;
(E) the effect of increased electrification on the
electric grid;
(F) power flow modeling;
(G) the benefits of increased interconnections or
interties between or among the Western Interconnection,
the Eastern Interconnection, the Electric Reliability
Council of Texas, and other interconnections, as
applicable;
(H) the cooptimization of transmission and
generation, including variable energy resources, energy
storage, and demand-side management;
(I) the opportunities for use of nontransmission
alternatives, energy storage, and grid-enhancing
technologies;
(J) economic development opportunities for
communities arising from development of interregional
electricity transmission and transmission of electricity
that is generated by offshore wind;
(K) evaluation of existing rights-of-way and the
need for additional transmission corridors; and
(L) a planned national transmission grid, which
would include a networked transmission system to
optimize the existing grid for interconnection of
offshore wind farms.
PART 6--INDUSTRIAL
SEC. 50161. <<NOTE: 42 USC 17113a.>> ADVANCED INDUSTRIAL
FACILITIES DEPLOYMENT PROGRAM.
(a) Office of Clean Energy Demonstrations.--In addition to amounts
otherwise available, there is appropriated to the Secretary, acting
through the Office of Clean Energy Demonstrations, for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated,
$5,812,000,000, to remain available through September 30, 2026, to carry
out this section.
(b) Financial Assistance.--The Secretary shall use funds
appropriated by subsection (a) to provide financial assistance, on a
competitive basis, to eligible entities to carry out projects for--
(1) the purchase and installation, or implementation, of
advanced industrial technology at an eligible facility;
(2) retrofits, upgrades to, or operational improvements at
an eligible facility to install or implement advanced industrial
technology; or
(3) engineering studies and other work needed to prepare an
eligible facility for activities described in paragraph (1) or
(2).
(c) Application.--To be eligible to receive financial assistance
under subsection (b), an eligible entity shall submit to the Secretary
an application at such time, in such manner, and containing such
information as the Secretary may require, including the expected
greenhouse gas emissions reductions to be achieved by carrying out the
project.
(d) <<NOTE: Determination.>> Priority.--In providing financial
assistance under subsection (b), the Secretary shall give priority
consideration to projects on the basis of, as determined by the
Secretary--
(1) the expected greenhouse gas emissions reductions to be
achieved by carrying out the project;
[[Page 136 STAT. 2050]]
(2) the extent to which the project would provide the
greatest benefit for the greatest number of people within the
area in which the eligible facility is located; and
(3) whether the eligible entity participates or would
participate in a partnership with purchasers of the output of
the eligible facility.
(e) <<NOTE: Requirement.>> Cost Share.--The Secretary shall require
an eligible entity to provide not less than 50 percent of the cost of a
project carried out pursuant to this section.
(f) Administrative Costs.--The Secretary shall reserve not more than
$300,000,000 of amounts made available under subsection (a) for
administrative costs of carrying out this section.
(g) Definitions.--In this section:
(1) <<NOTE: Determination.>> Advanced industrial
technology.--The term ``advanced industrial technology'' means a
technology directly involved in an industrial process, as
described in any of paragraphs (1) through (6) of section 454(c)
of the Energy Independence and Security Act of 2007 (42 U.S.C.
17113(c)), and designed to accelerate greenhouse gas emissions
reduction progress to net-zero at an eligible facility, as
determined by the Secretary.
(2) Eligible entity.--The term ``eligible entity'' means the
owner or operator of an eligible facility.
(3) Eligible facility.--The term ``eligible facility'' means
a domestic, non-Federal, nonpower industrial or manufacturing
facility engaged in energy-intensive industrial processes,
including production processes for iron, steel, steel mill
products, aluminum, cement, concrete, glass, pulp, paper,
industrial ceramics, chemicals, and other energy intensive
industrial processes, as determined by the Secretary.
(4) Financial assistance.--The term ``financial assistance''
means a grant, rebate, direct loan, or cooperative agreement.
PART 7--OTHER ENERGY MATTERS
SEC. 50171. DEPARTMENT OF ENERGY OVERSIGHT.
In addition to amounts otherwise available, there is appropriated to
the Secretary for fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $20,000,000, to remain available through
September 30, 2031, for oversight by the Department of Energy Office of
Inspector General of the Department of Energy activities for which
funding is appropriated in this subtitle.
SEC. 50172. NATIONAL LABORATORY INFRASTRUCTURE.
(a) Office of Science.--In addition to amounts otherwise available,
there is appropriated to the Secretary, acting through the Director of
the Office of Science, for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, to remain available through
September 30, 2027--
(1) $133,240,000 to carry out activities for science
laboratory infrastructure projects;
(2) $303,656,000 to carry out activities for high energy
physics construction and major items of equipment projects;
(3) $280,000,000 to carry out activities for fusion energy
science construction and major items of equipment projects;
(4) $217,000,000 to carry out activities for nuclear physics
construction and major items of equipment projects;
[[Page 136 STAT. 2051]]
(5) $163,791,000 to carry out activities for advanced
scientific computing research facilities;
(6) $294,500,000 to carry out activities for basic energy
sciences projects; and
(7) $157,813,000 to carry out activities for isotope
research and development facilities.
(b) Office of Fossil Energy and Carbon Management.--In addition to
amounts otherwise available, there is appropriated to the Secretary for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $150,000,000, to remain available through September 30,
2027, to carry out activities for infrastructure and general plant
projects carried out by the Office of Fossil Energy and Carbon
Management.
(c) Office of Nuclear Energy.--In addition to amounts otherwise
available, there is appropriated to the Secretary for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated,
$150,000,000, to remain available through September 30, 2027, to carry
out activities for infrastructure and general plant projects carried out
by the Office of Nuclear Energy.
(d) Office of Energy Efficiency and Renewable Energy.--In addition
to amounts otherwise available, there is appropriated to the Secretary
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $150,000,000, to remain available through September 30,
2027, to carry out activities for infrastructure and general plant
projects carried out by the Office of Energy Efficiency and Renewable
Energy.
SEC. 50173. AVAILABILITY OF HIGH-ASSAY LOW-ENRICHED URANIUM.
(a) Appropriations.--In addition to amounts otherwise available,
there is appropriated to the Secretary of for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated, to remain
available through September 30, 2026--
(1) $100,000,000 to carry out the program elements described
in subparagraphs (A) through (C) of section 2001(a)(2) of the
Energy Act of 2020 (42 U.S.C. 16281(a)(2));
(2) $500,000,000 to carry out the program elements described
in subparagraphs (D) through (H) of that section; and
(3) $100,000,000 to carry out activities to support the
availability of high-assay low-enriched uranium for civilian
domestic research, development, demonstration, and commercial
use under section 2001 of the Energy Act of 2020 (42 U.S.C.
16281).
(b) Competitive Procedures.--To the maximum extent practicable, the
Department of Energy shall, in a manner consistent with section 989 of
the Energy Policy Act of 2005 (42 U.S.C. 16353), use a competitive,
merit-based review process in carrying out research, development,
demonstration, and deployment activities under section 2001 of the
Energy Act of 2020 (42 U.S.C. 16281).
(c) Administrative Expenses.--The Secretary may use not more than 3
percent of the amounts appropriated by subsection (a) for administrative
purposes.
[[Page 136 STAT. 2052]]
Subtitle B--Natural Resources
PART 1--GENERAL PROVISIONS
SEC. 50211. <<NOTE: 43 USC 3006 note.>> DEFINITIONS.
In this subtitle:
(1) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
(2) United states insular areas.--The term ``United States
Insular Areas'' means American Samoa, the Commonwealth of the
Northern Mariana Islands, Guam, the Commonwealth of Puerto Rico,
and the United States Virgin Islands.
PART 2--PUBLIC LANDS
SEC. 50221. NATIONAL PARKS AND PUBLIC LANDS CONSERVATION AND
RESILIENCE.
In addition to amounts otherwise available, there is appropriated to
the Secretary for fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $250,000,000, to remain available through
September 30, 2031, to carry out projects for the conservation,
protection, and resiliency of lands and resources administered by the
National Park Service and Bureau of Land Management. None of the funds
provided under this section shall be subject to cost-share or matching
requirements.
SEC. 50222. NATIONAL PARKS AND PUBLIC LANDS CONSERVATION AND
ECOSYSTEM RESTORATION.
In addition to amounts otherwise available, there is appropriated to
the Secretary for fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $250,000,000, to remain available through
September 30, 2031, to carry out conservation, ecosystem and habitat
restoration projects on lands administered by the National Park Service
and Bureau of Land Management. None of the funds provided under this
section shall be subject to cost-share or matching requirements.
SEC. 50223. NATIONAL PARK SERVICE EMPLOYEES.
In addition to amounts otherwise available, there is appropriated to
the Secretary for fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $500,000,000, to remain available through
September 30, 2030, to hire employees to serve in units of the National
Park System or national historic or national scenic trails administered
by the National Park Service.
SEC. 50224. NATIONAL PARK SYSTEM DEFERRED MAINTENANCE.
In addition to amounts otherwise available, there is appropriated to
the Secretary for fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $200,000,000, to remain available through
September 30, 2026, to carry out priority deferred maintenance projects,
through direct expenditures or transfers, within the boundaries of the
National Park System.
[[Page 136 STAT. 2053]]
PART 3--DROUGHT RESPONSE AND PREPAREDNESS
SEC. 50231. BUREAU OF RECLAMATION DOMESTIC WATER SUPPLY PROJECTS.
In addition to amounts otherwise available, there is appropriated to
the Secretary, acting through the Commissioner of Reclamation, for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $550,000,000, to remain available through September 30,
2031, for grants, contracts, or financial assistance agreements for
disadvantaged communities (identified according to criteria adopted by
the Commissioner of Reclamation) in a manner as determined by the
Commissioner of Reclamation for up to 100 percent of the cost of the
planning, design, or construction of water projects the primary purpose
of which is to provide domestic water supplies to communities or
households that do not have reliable access to domestic water supplies
in a State or territory described in the first section of the Act of
June 17, 1902 (43 U.S.C. 391; 32 Stat. 388, chapter 1093).
SEC. 50232. CANAL IMPROVEMENT PROJECTS.
In addition to amounts otherwise available, there is appropriated to
the Secretary, acting through the Commissioner of Reclamation, for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $25,000,000, to remain available through September 30,
2031, for the design, study, and implementation of projects (including
pilot and demonstration projects) to cover water conveyance facilities
with solar panels to generate renewable energy in a manner as determined
by the Secretary or for other solar projects associated with Bureau of
Reclamation projects that increase water efficiency and assist in
implementation of clean energy goals.
SEC. 50233. DROUGHT MITIGATION IN THE RECLAMATION STATES.
(a) Definition of Reclamation State.--In this section, the term
``Reclamation State'' means a State or territory described in the first
section of the Act of June 17, 1902 (32 Stat. 388, chapter 1093; 43
U.S.C. 391).
(b) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary (acting through the Commissioner
of Reclamation), for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, $4,000,000,000, to remain available through
September 30, 2026, for grants, contracts, or financial assistance
agreements, in accordance with the reclamation laws, to or with public
entities and Indian Tribes, that provide for the conduct of the
following activities to mitigate the impacts of drought in the
Reclamation States, with priority given to the Colorado River Basin and
other basins experiencing comparable levels of long-term drought, to be
implemented in compliance with applicable environmental law:
(1) Compensation for a temporary or multiyear voluntary
reduction in diversion of water or consumptive water use.
(2) Voluntary system conservation projects that achieve
verifiable reductions in use of or demand for water supplies or
provide environmental benefits in the Lower Basin or Upper Basin
of the Colorado River.
[[Page 136 STAT. 2054]]
(3) Ecosystem and habitat restoration projects to address
issues directly caused by drought in a river basin or inland
water body.
(c) Report.--Not later than 1 year after the date of enactment of
this Act, and each year thereafter, the Secretary shall submit to
Congress a report that describes any expenditures under this section.
PART 4--INSULAR AFFAIRS
SEC. 50241. OFFICE OF INSULAR AFFAIRS CLIMATE CHANGE TECHNICAL
ASSISTANCE.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Secretary, acting through the Office of Insular
Affairs, for fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $15,000,000, to remain available through
September 30, 2026, to provide technical assistance for climate change
planning, mitigation, adaptation, and resilience to United States
Insular Areas.
(b) Administrative Expenses.--In addition to amounts otherwise
available, there is appropriated to the Secretary, acting through the
Office of Insular Affairs, for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $900,000, to remain available
through September 30, 2026, for necessary administrative expenses
associated with carrying out this section.
PART 5--OFFSHORE WIND
SEC. 50251. LEASING ON THE OUTER CONTINENTAL SHELF.
(a) Leasing Authorized.--The Secretary may grant leases, easements,
and rights-of-way pursuant to section 8(p)(1)(C) of the Outer
Continental Shelf Lands Act (43 U.S.C. 1337(p)(1)(C)) in an area
withdrawn by--
(1) the Presidential memorandum entitled ``Memorandum on the
Withdrawal of Certain Areas of the United States Outer
Continental Shelf from Leasing Disposition'' and dated September
8, 2020; or
(2) the Presidential memorandum entitled ``Presidential
Determination on the Withdrawal of Certain Areas of the United
States Outer Continental Shelf from Leasing Disposition'' and
dated September 25, 2020.
(b) Offshore Wind for the Territories.--
(1) Application of outer continental shelf lands act with
respect to territories of the united states.--
(A) In general.--Section 2 of the Outer Continental
Shelf Lands Act (43 U.S.C. 1331) is amended--
(i) in subsection (a)--
(I) by striking ``means all'' and
inserting the following: ``means--
``(1) all''; and
(II) in paragraph (1) (as so
designated), by striking ``control;''
and inserting the following: ``control
or within the exclusive economic zone of
the United States and adjacent to any
territory of the United States; and'';
and
(III) by adding at the end
following:
[[Page 136 STAT. 2055]]
``(2) does not include any area conveyed by Congress to a
territorial government for administration;'';
(ii) in subsection (p), by striking ``and''
after the semicolon at the end;
(iii) in subsection (q), by striking the
period at the end and inserting ``; and''; and
(iv) by adding at the end the following:
``(r) The term `State' means--
``(1) each of the several States;
``(2) the Commonwealth of Puerto Rico;
``(3) Guam;
``(4) American Samoa;
``(5) the United States Virgin Islands; and
``(6) the Commonwealth of the Northern Mariana Islands.''.
(B) Exclusions.--Section 18 of the Outer Continental
Shelf Lands Act (43 U.S.C. 1344) is amended by adding at
the end the following:
``(i) Application.--This section shall not
apply to the scheduling of any lease sale in an
area of the outer Continental Shelf that is
adjacent to the Commonwealth of Puerto Rico, Guam,
American Samoa, the United States Virgin Islands,
or the Commonwealth of the Northern Mariana
Islands.''.
(2) Wind lease sales for areas of the outer continental
shelf.--The Outer Continental Shelf Lands Act (43 U.S.C. 1331 et
seq.) is amended by adding at the end the following:
``SEC. 33. <<NOTE: 43 USC 1356c.>> WIND LEASE SALES FOR AREAS OF
THE OUTER CONTINENTAL SHELF OFFSHORE OF
TERRITORIES OF THE UNITED STATES.
``(a) Wind Lease Sales Off Coasts of Territories of the United
States.--
``(1) Call for information and nominations.--
``(A) In general.--The Secretary shall issue calls
for information and nominations for proposed wind lease
sales for areas of the outer Continental Shelf described
in paragraph (2) that are determined to be feasible.
``(B) <<NOTE: Deadline.>> Initial call.--Not later
than September 30, 2025, the Secretary shall issue an
initial call for information and nominations under this
paragraph.
``(2) Conditional wind lease sales.--The Secretary may
conduct wind lease sales in each area within the exclusive
economic zone of the United States adjacent to the Commonwealth
of Puerto Rico, Guam, American Samoa, the United States Virgin
Islands, or the Commonwealth of the Northern Mariana Islands
that meets each of the following criteria:
``(A) The Secretary has concluded that a wind lease
sale in the area is feasible.
``(B) <<NOTE: Determination.>> The Secretary has
determined that there is sufficient interest in leasing
the area.
``(C) The Secretary has consulted with the Governor
of the territory regarding the suitability of the area
for wind energy development.''.
[[Page 136 STAT. 2056]]
PART 6--FOSSIL FUEL RESOURCES
SEC. 50261. <<NOTE: Time period. Effective date.>> OFFSHORE OIL
AND GAS ROYALTY RATE.
Section 8(a)(1) of the Outer Continental Shelf Lands Act (43 U.S.C.
1337(a)(1)) is amended--
(1) in each of subparagraphs (A) and (C), by striking ``not
less than 12\1/2\ per centum'' each place it appears and
inserting ``not less than 16\2/3\ percent, but not more than
18\3/4\ percent, during the 10-year period beginning on the date
of enactment of the Act titled `An Act to provide for
reconciliation pursuant to title II of S. Con. Res. 14', and not
less than 16\2/3\ percent thereafter,'';
(2) in subparagraph (F), by striking ``no less than 12\1/2\
per centum'' and inserting ``not less than 16\2/3\ percent, but
not more than 18\3/4\ percent, during the 10-year period
beginning on the date of enactment of the Act titled `An Act to
provide for reconciliation pursuant to title II of S. Con. Res.
14', and not less than 16\2/3\ percent thereafter,''; and
(3) in subparagraph (H), by striking ``no less than 12 and
\1/2\ per centum'' and inserting ``not less than 16\2/3\
percent, but not more than 18\3/4\ percent, during the 10-year
period beginning on the date of enactment of the Act titled `An
Act to provide for reconciliation pursuant to title II of S.
Con. Res. 14', and not less than 16\2/3\ percent thereafter,''.
SEC. 50262. <<NOTE: Time periods. Effective dates.>> MINERAL
LEASING ACT MODERNIZATION.
(a) Onshore Oil and Gas Royalty Rates.--
(1) Lease of oil and gas land.--Section 17 of the Mineral
Leasing Act (30 U.S.C. 226) is amended--
(A) in subsection (b)(1)(A), in the fifth sentence--
(i) by striking ``12.5'' and inserting ``16\2/
3\''; and
(ii) by inserting ``or, in the case of a lease
issued during the 10-year period beginning on the
date of enactment of the Act titled `An Act to
provide for reconciliation pursuant to title II of
S. Con. Res. 14', 16\2/3\ percent in amount or
value of the production removed or sold from the
lease'' before the period at the end; and
(B) by striking ``12\1/2\ per centum'' each place it
appears and inserting ``16\2/3\ percent''.
(2) Conditions for reinstatement.--Section 31(e)(3) of the
Mineral Leasing Act (30 U.S.C. 188(e)(3)) is amended by striking
``16\2/3\'' each place it appears and inserting ``20''.
(b) Oil and Gas Minimum Bid.--Section 17(b) of the Mineral Leasing
Act (30 U.S.C. 226(b)) is amended--
(1) in paragraph (1)(B), in the first sentence, by striking
``$2 per acre for a period of 2 years from the date of enactment
of the Federal Onshore Oil and Gas Leasing Reform Act of 1987.''
and inserting ``$10 per acre during the 10-year period beginning
on the date of enactment of the Act titled `An Act to provide
for reconciliation pursuant to title II of S. Con. Res. 14'.'';
and
(2) in paragraph (2)(C), by striking ``$2 per acre'' and
inserting ``$10 per acre''.
(c) Fossil Fuel Rental Rates.--
(1) Annual rentals.--Section 17(d) of the Mineral Leasing
Act (30 U.S.C. 226(d)) is amended, in the first sentence, by
[[Page 136 STAT. 2057]]
striking ``$1.50 per acre'' and all that follows through the
period at the end and inserting ``$3 per acre per year during
the 2-year period beginning on the date the lease begins for new
leases, and after the end of that 2-year period, $5 per acre per
year for the following 6-year period, and not less than $15 per
acre per year thereafter, or, in the case of a lease issued
during the 10-year period beginning on the date of enactment of
the Act titled `An Act to provide for reconciliation pursuant to
title II of S. Con. Res. 14', $3 per acre per year during the 2-
year period beginning on the date the lease begins, and after
the end of that 2-year period, $5 per acre per year for the
following 6-year period, and $15 per acre per year
thereafter.''.
(2) Rentals in reinstated leases.--Section 31(e)(2) of the
Mineral Leasing Act (30 U.S.C. 188(e)(2)) is amended by striking
``$10'' and inserting ``$20''.
(d) Expression of Interest Fee.--Section 17 of the Mineral Leasing
Act (30 U.S.C. 226) is amended by adding at the end the following:
``(q) Fee for Expression of Interest.--
``(1) <<NOTE: Assessment.>> In general.--The Secretary
shall assess a nonrefundable fee against any person that, in
accordance with procedures established by the Secretary to carry
out this subsection, submits an expression of interest in
leasing land available for disposition under this section for
exploration for, and development of, oil or gas.
``(2) Amount of fee.--
``(A) In general.--Subject to subparagraph (B), the
fee assessed under paragraph (1) shall be $5 per acre of
the area covered by the applicable expression of
interest.
``(B) <<NOTE: Regulation.>> Adjustment of fee.--The
Secretary shall, by regulation, not less frequently than
every 4 years, adjust the amount of the fee under
subparagraph (A) to reflect the change in inflation.''.
(e) Elimination of Noncompetitive Leasing.--
(1) In general.--Section 17 of the Mineral Leasing Act (30
U.S.C. 226) is amended--
(A) in subsection (b)--
(i) in paragraph (1)(A)--
(I) in the first sentence, by
striking ``paragraphs (2) and (3) of
this subsection'' and inserting
``paragraph (2)''; and
(II) by striking the last sentence;
and
(ii) by striking paragraph (3);
(B) by striking subsection (c) and inserting the
following:
``(c) Additional Rounds of Competitive Bidding.--Land made available
for leasing under subsection (b)(1) for which no bid is accepted or
received, or the land for which a lease terminates, expires, is
cancelled, or is relinquished, may be made available by the Secretary of
the Interior for a new round of competitive bidding under that
subsection.''; and
(C) by striking subsection (e) and inserting the
following:
``(e) Term of Lease.--
[[Page 136 STAT. 2058]]
``(1) In general.--Any lease issued under this section,
including a lease for tar sand areas, shall be for a primary
term of 10 years.
``(2) Continuation of lease.--A lease described in paragraph
(1) shall continue after the primary term of the lease for any
period during which oil or gas is produced in paying quantities.
``(3) Additional extensions.--Any lease issued under this
section for land on which, or for which under an approved
cooperative or unit plan of development or operation, actual
drilling operations were commenced and diligently prosecuted
prior to the end of the primary term of the lease shall be
extended for 2 years and for any period thereafter during which
oil or gas is produced in paying quantities.''.
(2) Conforming amendments.--Section 31 of the Mineral
Leasing Act (30 U.S.C. 188) is amended--
(A) in subsection (d)(1), in the first sentence, by
striking ``or section 17(c) of this Act'';
(B) in subsection (e)--
(i) in paragraph (2)--
(I) by striking ``either''; and
(II) by striking ``or the
inclusion'' and all that follows through
``, all''; and
(ii) in paragraph (3)--
(I) in subparagraph (A), by adding
``and'' after the semicolon;
(II) by striking subparagraph (B);
and
(III) by striking ``(3)(A) payment''
and inserting the following:
``(3) payment'';
(C) in subsection (g)--
(i) in paragraph (1), by striking ``as a
competitive'' and all that follows through ``of
this Act'' and inserting ``in the same manner as
the original lease issued pursuant to section
17'';
(ii) by striking paragraph (2);
(iii) by redesignating paragraphs (3) and (4)
as paragraphs (2) and (3), respectively; and
(iv) in paragraph (2) (as so redesignated), by
striking ``applicable to leases issued under
subsection 17(c) of this Act (30 U.S.C. 226(c))
except,'' and inserting ``except'';
(D) in subsection (h), by striking ``subsections (d)
and (f) of this section'' and inserting ``subsection
(d)'';
(E) in subsection (i), by striking ``(i)(1) In
acting'' and all that follows through ``of this
section'' in paragraph (2) and inserting the following:
``(i) Royalty reduction in reinstated
leases.--In acting on a petition for reinstatement
pursuant to subsection (d)'';
(F) by striking subsection (f); and
(G) by redesignating subsections (g) through (j) as
subsections (f) through (i), respectively.
SEC. 50263. <<NOTE: 30 USC 1727.>> ROYALTIES ON ALL EXTRACTED
METHANE.
(a) In General.--For all leases issued after the date of enactment
of this Act, except as provided in subsection (b), royalties
[[Page 136 STAT. 2059]]
paid for gas produced from Federal land and on the outer Continental
Shelf shall be assessed on all gas produced, including all gas that is
consumed or lost by venting, flaring, or negligent releases through any
equipment during upstream operations.
(b) Exception.--Subsection (a) shall not apply with respect to--
(1) <<NOTE: Time period.>> gas vented or flared for not
longer than 48 hours in an emergency situation that poses a
danger to human health, safety, or the environment;
(2) gas used or consumed within the area of the lease, unit,
or communitized area for the benefit of the lease, unit, or
communitized area; or
(3) gas that is unavoidably lost.
SEC. 50264. <<NOTE: Deadlines.>> LEASE SALES UNDER THE 2017-2022
OUTER CONTINENTAL SHELF LEASING
PROGRAM.
(a) Definitions.--In this section:
(1) Lease sale 257.--The term ``Lease Sale 257'' means the
lease sale numbered 257 that was approved in the Record of
Decision described in the notice of availability of a record of
decision issued on August 31, 2021, entitled ``Gulf of Mexico,
Outer Continental Shelf (OCS), Oil and Gas Lease Sale 257'' (86
Fed. Reg. 50160 (September 7, 2021)), and is the subject of the
final notice of sale entitled ``Gulf of Mexico Outer Continental
Shelf Oil and Gas Lease Sale 257'' (86 Fed. Reg. 54728 (October
4, 2021)).
(2) Lease sale 258.--The term ``Lease Sale 258'' means the
lease sale numbered 258 described in the 2017-2022 Outer
Continental Shelf Oil and Gas Leasing Proposed Final Program
published on November 18, 2016, and approved by the Secretary in
the Record of Decision issued on January 17, 2017, described in
the notice of availability entitled ``Record of Decision for the
2017-2022 Outer Continental Shelf Oil and Gas Leasing Program
Final Programmatic Environmental Impact Statement; MMAA104000''
(82 Fed. Reg. 6643 (January 19, 2017)).
(3) Lease sale 259.--The term ``Lease Sale 259'' means the
lease sale numbered 259 described in the 2017-2022 Outer
Continental Shelf Oil and Gas Leasing Proposed Final Program
published on November 18, 2016, and approved by the Secretary in
the Record of Decision issued on January 17, 2017, described in
the notice of availability entitled ``Record of Decision for the
2017-2022 Outer Continental Shelf Oil and Gas Leasing Program
Final Programmatic Environmental Impact Statement; MMAA104000''
(82 Fed. Reg. 6643 (January 19, 2017)).
(4) Lease sale 261.--The term ``Lease Sale 261'' means the
lease sale numbered 261 described in the 2017-2022 Outer
Continental Shelf Oil and Gas Leasing Proposed Final Program
published on November 18, 2016, and approved by the Secretary in
the Record of Decision issued on January 17, 2017, described in
the notice of availability entitled ``Record of Decision for the
2017-2022 Outer Continental Shelf Oil and Gas Leasing Program
Final Programmatic Environmental Impact Statement; MMAA104000''
(82 Fed. Reg. 6643 (January 19, 2017)).
(b) Lease Sale 257 Reinstatement.--
(1) Acceptance of bids.--Not later 30 days after the date of
enactment of this Act, the Secretary shall, without modification
or delay--
[[Page 136 STAT. 2060]]
(A) accept the highest valid bid for each tract or
bidding unit of Lease Sale 257 for which a valid bid was
received on November 17, 2021; and
(B) provide the appropriate lease form to the
winning bidder to execute and return.
(2) Lease issuance.--On receipt of an executed lease form
under paragraph (1)(B) and payment of the rental for the first
year, the balance of the bonus bid (unless deferred), and any
required bond or security from the high bidder, the Secretary
shall promptly issue to the high bidder a fully executed lease,
in accordance with--
(A) the regulations in effect on the date of Lease
Sale 257; and
(B) the terms and conditions of the final notice of
sale entitled ``Gulf of Mexico Outer Continental Shelf
Oil and Gas Lease Sale 257'' (86 Fed. Reg. 54728
(October 4, 2021)).
(c) Requirement for Lease Sale 258.--Notwithstanding the expiration
of the 2017-2022 leasing program, not later than December 31, 2022, the
Secretary shall conduct Lease Sale 258 in accordance with the Record of
Decision approved by the Secretary on January 17, 2017, described in the
notice of availability entitled ``Record of Decision for the 2017-2022
Outer Continental Shelf Oil and Gas Leasing Program Final Programmatic
Environmental Impact Statement; MMAA104000'' issued on January 17, 2017
(82 Fed. Reg. 6643 (January 19, 2017)).
(d) Requirement for Lease Sale 259.--Notwithstanding the expiration
of the 2017-2022 leasing program, not later than March 31, 2023, the
Secretary shall conduct Lease Sale 259 in accordance with the Record of
Decision approved by the Secretary on January 17, 2017, described in the
notice of availability entitled ``Record of Decision for the 2017-2022
Outer Continental Shelf Oil and Gas Leasing Program Final Programmatic
Environmental Impact Statement; MMAA104000'' issued on January 17, 2017
(82 Fed. Reg. 6643 (January 19, 2017)).
(e) Requirement for Lease Sale 261.--Notwithstanding the expiration
of the 2017-2022 leasing program, not later than September 30, 2023, the
Secretary shall conduct Lease Sale 261 in accordance with the Record of
Decision approved by the Secretary on January 17, 2017, described in the
notice of availability entitled ``Record of Decision for the 2017-2022
Outer Continental Shelf Oil and Gas Leasing Program Final Programmatic
Environmental Impact Statement; MMAA104000'' issued on January 17, 2017
(82 Fed. Reg. 6643 (January 19, 2017)).
SEC. 50265. <<NOTE: 43 USC 3006.>> ENSURING ENERGY SECURITY.
(a) Definitions.--In this section:
(1) Federal land.--The term ``Federal land'' means public
lands (as defined in section 103 of the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1702)).
(2) Offshore lease sale.--The term ``offshore lease sale''
means an oil and gas lease sale--
(A) that is held by the Secretary in accordance with
the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et
seq.); and
[[Page 136 STAT. 2061]]
(B) that, if any acceptable bids have been received
for any tract offered in the lease sale, results in the
issuance of a lease.
(3) Onshore lease sale.--The term ``onshore lease sale''
means a quarterly oil and gas lease sale--
(A) that is held by the Secretary in accordance with
section 17 of the Mineral Leasing Act (30 U.S.C. 226);
and
(B) that, if any acceptable bids have been received
for any parcel offered in the lease sale, results in the
issuance of a lease.
(b) Limitation on Issuance of Certain Leases or Rights-of-way.--
During the 10-year period <<NOTE: Time periods. Effective dates.>>
beginning on the date of enactment of this Act--
(1) the Secretary may not issue a right-of-way for wind or
solar energy development on Federal land unless--
(A) an onshore lease sale has been held during the
120-day period ending on the date of the issuance of the
right-of-way for wind or solar energy development; and
(B) the sum total of acres offered for lease in
onshore lease sales during the 1-year period ending on
the date of the issuance of the right-of-way for wind or
solar energy development is not less than the lesser
of--
(i) 2,000,000 acres; and
(ii) 50 percent of the acreage for which
expressions of interest have been submitted for
lease sales during that period; and
(2) the Secretary may not issue a lease for offshore wind
development under section 8(p)(1)(C) of the Outer Continental
Shelf Lands Act (43 U.S.C. 1337(p)(1)(C)) unless--
(A) an offshore lease sale has been held during the
1-year period ending on the date of the issuance of the
lease for offshore wind development; and
(B) the sum total of acres offered for lease in
offshore lease sales during the 1-year period ending on
the date of the issuance of the lease for offshore wind
development is not less than 60,000,000 acres.
(c) Savings.--Except as expressly provided in paragraphs (1) and (2)
of subsection (b), nothing in this section supersedes, amends, or
modifies existing law.
PART 7--UNITED STATES GEOLOGICAL SURVEY
SEC. 50271. UNITED STATES GEOLOGICAL SURVEY 3D ELEVATION PROGRAM.
In addition to amounts otherwise available, there is appropriated to
the Secretary, acting through the Director of the United States
Geological Survey, for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $23,500,000, to remain available
through September 30, 2031, to produce, collect, disseminate, and use 3D
elevation data.
[[Page 136 STAT. 2062]]
PART 8--OTHER NATURAL RESOURCES MATTERS
SEC. 50281. DEPARTMENT OF THE INTERIOR OVERSIGHT.
In addition to amounts otherwise available, there is appropriated to
the Secretary for fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $10,000,000, to remain available through
September 30, 2031, for oversight by the Department of the Interior
Office of Inspector General of the Department of the Interior activities
for which funding is appropriated in this subtitle.
Subtitle C--Environmental Reviews
SEC. 50301. DEPARTMENT OF ENERGY.
In addition to amounts otherwise available, there is appropriated to
the Secretary of Energy for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $115,000,000, to remain available
through September 30, 2031, to provide for the hiring and training of
personnel, the development of programmatic environmental documents, the
procurement of technical or scientific services for environmental
reviews, the development of environmental data or information systems,
stakeholder and community engagement, and the purchase of new equipment
for environmental analysis to facilitate timely and efficient
environmental reviews and authorizations.
SEC. 50302. FEDERAL ENERGY REGULATORY COMMISSION.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Federal Energy Regulatory Commission for fiscal
year 2022, out of any money in the Treasury not otherwise appropriated,
$100,000,000, to remain available through September 30, 2031, to provide
for the hiring and training of personnel, the development of
programmatic environmental documents, the procurement of technical or
scientific services for environmental reviews, the development of
environmental data or information systems, stakeholder and community
engagement, and the purchase of new equipment for environmental analysis
to facilitate timely and efficient environmental reviews and
authorizations.
(b) Fees and Charges.--Section 3401(a) of the Omnibus Budget
Reconciliation Act of 1986 (42 U.S.C. 7178(a)) shall not apply to the
costs incurred by the Federal Energy Regulatory Commission in carrying
out this section.
SEC. 50303. DEPARTMENT OF THE INTERIOR.
In addition to amounts otherwise available, there is appropriated to
the Secretary of the Interior for fiscal year 2022, out of any money in
the Treasury not otherwise appropriated, $150,000,000, to remain
available through September 30, 2026, to provide for the hiring and
training of personnel, the development of programmatic environmental
documents, the procurement of technical or scientific services for
environmental reviews, the development of environmental data or
information systems, stakeholder and community engagement, and the
purchase of new equipment for environmental analysis to facilitate
timely and efficient environmental reviews and authorizations by the
National Park
[[Page 136 STAT. 2063]]
Service, the Bureau of Land Management, the Bureau of Ocean Energy
Management, the Bureau of Reclamation, the Bureau of Safety and
Environmental Enforcement, and the Office of Surface Mining Reclamation
and Enforcement.
TITLE VI--COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS
Subtitle A--Air Pollution
SEC. 60101. CLEAN HEAVY-DUTY VEHICLES.
The Clean Air Act is amended by inserting after section 131 of such
Act (42 U.S.C. 7431) the following:
``SEC. 132. <<NOTE: 42 USC 7432.>> CLEAN HEAVY-DUTY VEHICLES.
``(a) Appropriations.--
``(1) In general.--In addition to amounts otherwise
available, there is appropriated to the Administrator for fiscal
year 2022, out of any money in the Treasury not otherwise
appropriated, $600,000,000, to remain available until September
30, 2031, to carry out this section.
``(2) Nonattainment areas.--In addition to amounts otherwise
available, there is appropriated to the Administrator for fiscal
year 2022, out of any money in the Treasury not otherwise
appropriated, $400,000,000, to remain available until September
30, 2031, to make awards under this section to eligible
recipients and to eligible contractors that propose to replace
eligible vehicles to serve 1 or more communities located in an
air quality area designated pursuant to section 107 as
nonattainment for any air pollutant.
``(3) Reservation.--Of the funds appropriated by paragraph
(1), the Administrator shall reserve 3 percent for
administrative costs necessary to carry out this section.
``(b) <<NOTE: Deadline. Grants. Rebates.>> Program.--Beginning not
later than 180 days after the date of enactment of this section, the
Administrator shall implement a program to make awards of grants and
rebates to eligible recipients, and to make awards of contracts to
eligible contractors for providing rebates, for up to 100 percent of
costs for--
``(1) <<NOTE: Determination.>> the incremental costs of
replacing an eligible vehicle that is not a zero-emission
vehicle with a zero-emission vehicle, as determined by the
Administrator based on the market value of the vehicles;
``(2) purchasing, installing, operating, and maintaining
infrastructure needed to charge, fuel, or maintain zero-emission
vehicles;
``(3) workforce development and training to support the
maintenance, charging, fueling, and operation of zero-emission
vehicles; and
``(4) planning and technical activities to support the
adoption and deployment of zero-emission vehicles.
``(c) Applications.--To seek an award under this section, an
eligible recipient or eligible contractor shall submit to the
Administrator an application at such time, in such manner, and
containing such information as the Administrator shall prescribe.
``(d) Definitions.--For purposes of this section:
[[Page 136 STAT. 2064]]
``(1) Eligible contractor.--The term `eligible contractor'
means a contractor that has the capacity--
``(A) to sell, lease, license, or contract for
service zero-emission vehicles, or charging or other
equipment needed to charge, fuel, or maintain zero-
emission vehicles, to individuals or entities that own,
lease, license, or contract for service an eligible
vehicle; or
``(B) to arrange financing for such a sale, lease,
license, or contract for service.
``(2) Eligible recipient.--The term `eligible recipient'
means--
``(A) a State;
``(B) a municipality;
``(C) an Indian tribe; or
``(D) a nonprofit school transportation association.
``(3) Eligible vehicle.--The term `eligible vehicle' means a
Class 6 or Class 7 heavy-duty vehicle as defined in section
1037.801 of title 40, Code of Federal Regulations (as in effect
on the date of enactment of this section).
``(4) Greenhouse gas.--The term `greenhouse gas' means the
air pollutants carbon dioxide, hydrofluorocarbons, methane,
nitrous oxide, perfluorocarbons, and sulfur hexafluoride.
``(5) Zero-emission vehicle.--The term `zero-emission
vehicle' means a vehicle that has a drivetrain that produces,
under any possible operational mode or condition, zero exhaust
emissions of--
``(A) any air pollutant that is listed pursuant to
section 108(a) (or any precursor to such an air
pollutant); and
``(B) any greenhouse gas.''.
SEC. 60102. GRANTS TO REDUCE AIR POLLUTION AT PORTS.
The Clean Air Act is amended by inserting after section 132 of such
Act, as added by section 60101 of this Act, the following:
``SEC. 133. <<NOTE: 42 USC 7433.>> GRANTS TO REDUCE AIR POLLUTION
AT PORTS.
``(a) Appropriations.--
``(1) General assistance.--In addition to amounts otherwise
available, there is appropriated to the Administrator for fiscal
year 2022, out of any money in the Treasury not otherwise
appropriated, $2,250,000,000, to remain available until
September 30, 2027, to award rebates and grants to eligible
recipients on a competitive basis--
``(A) to purchase or install zero-emission port
equipment or technology for use at, or to directly
serve, one or more ports;
``(B) to conduct any relevant planning or permitting
in connection with the purchase or installation of such
zero-emission port equipment or technology; and
``(C) to develop qualified climate action plans.
``(2) Nonattainment areas.--In addition to amounts otherwise
available, there is appropriated to the Administrator for fiscal
year 2022, out of any money in the Treasury not otherwise
appropriated, $750,000,000, to remain available until September
30, 2027, to award rebates and grants to eligible recipients to
carry out activities described in paragraph (1) with respect to
ports located in air quality areas designated pursuant to
section 107 as nonattainment for an air pollutant.
[[Page 136 STAT. 2065]]
``(b) Limitation.--Funds awarded under this section shall not be
used by any recipient or subrecipient to purchase or install zero-
emission port equipment or technology that will not be located at, or
directly serve, the one or more ports involved.
``(c) Administration of Funds.--Of the funds made available by this
section, the Administrator shall reserve 2 percent for administrative
costs necessary to carry out this section.
``(d) Definitions.--In this section:
``(1) Eligible recipient.--The term `eligible recipient'
means--
``(A) a port authority;
``(B) a State, regional, local, or Tribal agency
that has jurisdiction over a port authority or a port;
``(C) an air pollution control agency; or
``(D) a private entity that--
``(i) applies for a grant under this section
in partnership with an entity described in any of
subparagraphs (A) through (C); and
``(ii) owns, operates, or uses the facilities,
cargo-handling equipment, transportation
equipment, or related technology of a port.
``(2) Greenhouse gas.--The term `greenhouse gas' means the
air pollutants carbon dioxide, hydrofluorocarbons, methane,
nitrous oxide, perfluorocarbons, and sulfur hexafluoride.
``(3) Qualified climate action plan.--The term `qualified
climate action plan' means a detailed and strategic plan that--
``(A) establishes goals, implementation strategies,
and accounting and inventory practices to reduce
emissions at one or more ports of--
``(i) greenhouse gases;
``(ii) an air pollutant that is listed
pursuant to section 108(a) (or any precursor to
such an air pollutant); and
``(iii) hazardous air pollutants;
``(B) includes a strategy to collaborate with,
communicate with, and address potential effects on low-
income and disadvantaged near-port communities and other
stakeholders that may be affected by implementation of
the plan; and
``(C) describes how an eligible recipient has
implemented or will implement measures to increase the
resilience of the one or more ports involved.
``(4) Zero-emission port equipment or technology.--The term
`zero-emission port equipment or technology' means human-
operated equipment or human-maintained technology that--
``(A) produces zero emissions of any air pollutant
that is listed pursuant to section 108(a) (or any
precursor to such an air pollutant) and any greenhouse
gas other than water vapor; or
``(B) captures 100 percent of the emissions
described in subparagraph (A) that are produced by an
ocean-going vessel at berth.''.
SEC. 60103. GREENHOUSE GAS REDUCTION FUND.
The Clean Air Act is amended by inserting after section 133 of such
Act, as added by section 60102 of this Act, the following:
[[Page 136 STAT. 2066]]
``SEC. 134. <<NOTE: 42 USC 7434.>> GREENHOUSE GAS REDUCTION FUND.
``(a) <<NOTE: Deadlines.>> Appropriations.--
``(1) Zero-emission technologies.--In addition to amounts
otherwise available, there is appropriated to the Administrator
for fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $7,000,000,000, to remain available
until September 30, 2024, to make grants, on a competitive basis
and beginning not later than 180 calendar days after the date of
enactment of this section, to States, municipalities, Tribal
governments, and eligible recipients for the purposes of
providing grants, loans, or other forms of financial assistance,
as well as technical assistance, to enable low-income and
disadvantaged communities to deploy or benefit from zero-
emission technologies, including distributed technologies on
residential rooftops, and to carry out other greenhouse gas
emission reduction activities, as determined appropriate by the
Administrator in accordance with this section.
``(2) General assistance.--In addition to amounts otherwise
available, there is appropriated to the Administrator for fiscal
year 2022, out of any money in the Treasury not otherwise
appropriated, $11,970,000,000, to remain available until
September 30, 2024, to make grants, on a competitive basis and
beginning not later than 180 calendar days after the date of
enactment of this section, to eligible recipients for the
purposes of providing financial assistance and technical
assistance in accordance with subsection (b).
``(3) Low-income and disadvantaged communities.--In addition
to amounts otherwise available, there is appropriated to the
Administrator for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $8,000,000,000, to remain
available until September 30, 2024, to make grants, on a
competitive basis and beginning not later than 180 calendar days
after the date of enactment of this section, to eligible
recipients for the purposes of providing financial assistance
and technical assistance in low-income and disadvantaged
communities in accordance with subsection (b).
``(4) Administrative costs.--In addition to amounts
otherwise available, there is appropriated to the Administrator
for fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $30,000,000, to remain available until
September 30, 2031, for the administrative costs necessary to
carry out activities under this section.
``(b) Use of Funds.--An eligible recipient that receives a grant
pursuant to subsection (a) shall use the grant in accordance with the
following:
``(1) Direct investment.--The eligible recipient shall--
``(A) provide financial assistance to qualified
projects at the national, regional, State, and local
levels;
``(B) prioritize investment in qualified projects
that would otherwise lack access to financing; and
``(C) retain, manage, recycle, and monetize all
repayments and other revenue received from fees,
interest, repaid loans, and all other types of financial
assistance provided using grant funds under this section
to ensure continued operability.
``(2) Indirect investment.--The eligible recipient shall
provide funding and technical assistance to establish new or
[[Page 136 STAT. 2067]]
support existing public, quasi-public, not-for-profit, or
nonprofit entities that provide financial assistance to
qualified projects at the State, local, territorial, or Tribal
level or in the District of Columbia, including community- and
low-income-focused lenders and capital providers.
``(c) Definitions.--In this section:
``(1) Eligible recipient.--The term `eligible recipient'
means a nonprofit organization that--
``(A) is designed to provide capital, leverage
private capital, and provide other forms of financial
assistance for the rapid deployment of low- and zero-
emission products, technologies, and services;
``(B) does not take deposits other than deposits
from repayments and other revenue received from
financial assistance provided using grant funds under
this section;
``(C) is funded by public or charitable
contributions; and
``(D) invests in or finances projects alone or in
conjunction with other investors.
``(2) Greenhouse gas.--The term `greenhouse gas' means the
air pollutants carbon dioxide, hydrofluorocarbons, methane,
nitrous oxide, perfluorocarbons, and sulfur hexafluoride.
``(3) Qualified project.--The term `qualified project'
includes any project, activity, or technology that--
``(A) reduces or avoids greenhouse gas emissions and
other forms of air pollution in partnership with, and by
leveraging investment from, the private sector; or
``(B) assists communities in the efforts of those
communities to reduce or avoid greenhouse gas emissions
and other forms of air pollution.
``(4) Zero-emission technology.--The term `zero-emission
technology' means any technology that produces zero emissions
of--
``(A) any air pollutant that is listed pursuant to
section 108(a) (or any precursor to such an air
pollutant); and
``(B) any greenhouse gas.''.
SEC. 60104. DIESEL EMISSIONS REDUCTIONS.
(a) Goods Movement.--In addition to amounts otherwise available,
there is appropriated to the Administrator of the Environmental
Protection Agency for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, $60,000,000, to remain available until
September 30, 2031, for grants, rebates, and loans under section 792 of
the Energy Policy Act of 2005 (42 U.S.C. 16132) to identify and reduce
diesel emissions resulting from goods movement facilities, and vehicles
servicing goods movement facilities, in low-income and disadvantaged
communities to address the health impacts of such emissions on such
communities.
(b) Administrative Costs.--The Administrator of the Environmental
Protection Agency shall reserve 2 percent of the amounts made available
under this section for the administrative costs necessary to carry out
activities pursuant to this section.
SEC. 60105. FUNDING TO ADDRESS AIR POLLUTION.
(a) Fenceline Air Monitoring and Screening Air Monitoring.--In
addition to amounts otherwise available, there is appropriated to the
Administrator of the Environmental Protection Agency for fiscal year
2022, out of any money in the Treasury
[[Page 136 STAT. 2068]]
not otherwise appropriated, $117,500,000, to remain available until
September 30, 2031, for grants and other activities authorized under
subsections (a) through (c) of section 103 and section 105 of the Clean
Air Act (42 U.S.C. 7403(a)-(c), 7405) to deploy, integrate, support, and
maintain fenceline air monitoring, screening air monitoring, national
air toxics trend stations, and other air toxics and community
monitoring.
(b) Multipollutant Monitoring Stations.--In addition to amounts
otherwise available, there is appropriated to the Administrator of the
Environmental Protection Agency for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $50,000,000, to remain
available until September 30, 2031, for grants and other activities
authorized under subsections (a) through (c) of section 103 and section
105 of the Clean Air Act (42 U.S.C. 7403(a)-(c), 7405)--
(1) to expand the national ambient air quality monitoring
network with new multipollutant monitoring stations; and
(2) to replace, repair, operate, and maintain existing
monitors.
(c) Air Quality Sensors in Low-income and Disadvantaged
Communities.--In addition to amounts otherwise available, there is
appropriated to the Administrator of the Environmental Protection Agency
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $3,000,000, to remain available until September 30, 2031,
for grants and other activities authorized under subsections (a) through
(c) of section 103 and section 105 of the Clean Air Act (42 U.S.C.
7403(a)-(c), 7405) to deploy, integrate, and operate air quality sensors
in low-income and disadvantaged communities.
(d) Emissions From Wood Heaters.--In addition to amounts otherwise
available, there is appropriated to the Administrator of the
Environmental Protection Agency for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $15,000,000, to remain
available until September 30, 2031, for grants and other activities
authorized under subsections (a) through (c) of section 103 and section
105 of the Clean Air Act (42 U.S.C. 7403(a)-(c), 7405) for testing and
other agency activities to address emissions from wood heaters.
(e) Methane Monitoring.--In addition to amounts otherwise available,
there is appropriated to the Administrator of the Environmental
Protection Agency for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, $20,000,000, to remain available until
September 30, 2031, for grants and other activities authorized under
subsections (a) through (c) of section 103 and section 105 of the Clean
Air Act (42 U.S.C. 7403(a)-(c), 7405) for monitoring emissions of
methane.
(f) Clean Air Act Grants.--In addition to amounts otherwise
available, there is appropriated to the Administrator of the
Environmental Protection Agency for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $25,000,000, to remain
available until September 30, 2031, for grants and other activities
authorized under subsections (a) through (c) of section 103 and section
105 of the Clean Air Act (42 U.S.C. 7403(a)-(c), 7405).
(g) Greenhouse Gas and Zero-emission Standards for Mobile Sources.--
In addition to amounts otherwise available, there is appropriated to the
Administrator of the Environmental Protection Agency for fiscal year
2022, out of any money in the
[[Page 136 STAT. 2069]]
Treasury not otherwise appropriated, $5,000,000, to remain available
until September 30, 2031, to provide grants to States to adopt and
implement greenhouse gas and zero-emission standards for mobile sources
pursuant to section 177 of the Clean Air Act (42 U.S.C. 7507).
(h) Definition of Greenhouse Gas.--In this section, the term
``greenhouse gas'' means the air pollutants carbon dioxide,
hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and sulfur
hexafluoride.
SEC. 60106. FUNDING TO ADDRESS AIR POLLUTION AT SCHOOLS.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Administrator of the Environmental Protection
Agency for fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $37,500,000, to remain available until September
30, 2031, for grants and other activities to monitor and reduce
greenhouse gas emissions and other air pollutants at schools in low-
income and disadvantaged communities under subsections (a) through (c)
of section 103 of the Clean Air Act (42 U.S.C. 7403(a)-(c)) and section
105 of that Act (42 U.S.C. 7405).
(b) Technical Assistance.--In addition to amounts otherwise
available, there is appropriated to the Administrator of the
Environmental Protection Agency for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $12,500,000, to remain
available until September 30, 2031, for providing technical assistance
to schools in low-income and disadvantaged communities under subsections
(a) through (c) of section 103 of the Clean Air Act (42 U.S.C. 7403(a)-
(c)) and section 105 of that Act (42 U.S.C. 7405)--
(1) to address environmental issues;
(2) to develop school environmental quality plans that
include standards for school building, design, construction, and
renovation; and
(3) to identify and mitigate ongoing air pollution hazards.
(c) Definition of Greenhouse Gas.--In this section, the term
``greenhouse gas'' means the air pollutants carbon dioxide,
hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and sulfur
hexafluoride.
SEC. 60107. LOW EMISSIONS ELECTRICITY PROGRAM.
The Clean Air Act is amended by inserting after section 134 of such
Act, as added by section 60103 of this Act, the following:
``SEC. 135. <<NOTE: 42 USC 7435.>> LOW EMISSIONS ELECTRICITY
PROGRAM.
``(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Administrator for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated, to remain
available until September 30, 2031--
``(1) $17,000,000 for consumer-related education and
partnerships with respect to reductions in greenhouse gas
emissions that result from domestic electricity generation and
use;
``(2) $17,000,000 for education, technical assistance, and
partnerships within low-income and disadvantaged communities
with respect to reductions in greenhouse gas emissions that
result from domestic electricity generation and use;
``(3) $17,000,000 for industry-related outreach, technical
assistance, and partnerships with respect to reductions in
[[Page 136 STAT. 2070]]
greenhouse gas emissions that result from domestic electricity
generation and use;
``(4) $17,000,000 for outreach and technical assistance to,
and partnerships with, State, Tribal, and local governments with
respect to reductions in greenhouse gas emissions that result
from domestic electricity generation and use;
``(5) <<NOTE: Assessment. Deadline.>> $1,000,000 to assess,
not later than 1 year after the date of enactment of this
section, the reductions in greenhouse gas emissions that result
from changes in domestic electricity generation and use that are
anticipated to occur on an annual basis through fiscal year
2031; and
``(6) $18,000,000 to ensure that reductions in greenhouse
gas emissions are achieved through use of the existing
authorities of this Act, incorporating the assessment under
paragraph (5).
``(b) Administration of Funds.--Of the amounts made available under
subsection (a), the Administrator shall reserve 2 percent for the
administrative costs necessary to carry out activities pursuant to that
subsection.
``(c) Definition of Greenhouse Gas.--In this section, the term
`greenhouse gas' means the air pollutants carbon dioxide,
hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and sulfur
hexafluoride.''.
SEC. 60108. FUNDING FOR SECTION 211(O) OF THE CLEAN AIR ACT.
(a) Test and Protocol Development.--In addition to amounts otherwise
available, there is appropriated to the Administrator of the
Environmental Protection Agency for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $5,000,000, to remain
available until September 30, 2031, to carry out section 211(o) of the
Clean Air Act (42 U.S.C. 7545(o)) with respect to--
(1) the development and establishment of tests and protocols
regarding the environmental and public health effects of a fuel
or fuel additive;
(2) internal and extramural data collection and analyses to
regularly update applicable regulations, guidance, and
procedures for determining lifecycle greenhouse gas emissions of
a fuel; and
(3) the review, analysis, and evaluation of the impacts of
all transportation fuels, including fuel lifecycle implications,
on the general public and on low-income and disadvantaged
communities.
(b) Investments in Advanced Biofuels.--In addition to amounts
otherwise available, there is appropriated to the Administrator of the
Environmental Protection Agency for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $10,000,000, to remain
available until September 30, 2031, for new grants to industry and other
related activities under section 211(o) of the Clean Air Act (42 U.S.C.
7545(o)) to support investments in advanced biofuels.
(c) Definition of Greenhouse Gas.--In this section, the term
``greenhouse gas'' means the air pollutants carbon dioxide,
hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and sulfur
hexafluoride.
[[Page 136 STAT. 2071]]
SEC. 60109. FUNDING FOR IMPLEMENTATION OF THE AMERICAN INNOVATION
AND MANUFACTURING ACT.
(a) Appropriations.--
(1) In general.--In addition to amounts otherwise available,
there is appropriated to the Administrator of the Environmental
Protection Agency for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $20,000,000, to remain
available until September 30, 2026, to carry out subsections (a)
through (i) and subsection (k) of section 103 of division S of
Public Law 116-260 (42 U.S.C. 7675).
(2) Implementation and compliance tools.--In addition to
amounts otherwise available, there is appropriated to the
Administrator of the Environmental Protection Agency for fiscal
year 2022, out of any money in the Treasury not otherwise
appropriated, $3,500,000, to remain available until September
30, 2026, to deploy new implementation and compliance tools to
carry out subsections (a) through (i) and subsection (k) of
section 103 of division S of Public Law 116-260 (42 U.S.C.
7675).
(3) Competitive grants.--In addition to amounts otherwise
available, there is appropriated to the Administrator of the
Environmental Protection Agency for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, $15,000,000,
to remain available until September 30, 2026, for competitive
grants for reclaim and innovative destruction technologies under
subsections (a) through (i) and subsection (k) of section 103 of
division S of Public Law 116-260 (42 U.S.C. 7675).
(b) Administration of Funds.--Of the funds made available pursuant
to subsection (a)(3), the Administrator of the Environmental Protection
Agency shall reserve 5 percent for administrative costs necessary to
carry out activities pursuant to such subsection.
SEC. 60110. FUNDING FOR ENFORCEMENT TECHNOLOGY AND PUBLIC
INFORMATION.
(a) Compliance Monitoring.--In addition to amounts otherwise
available, there is appropriated to the Administrator of the
Environmental Protection Agency for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $18,000,000, to remain
available until September 30, 2031, to update the Integrated Compliance
Information System of the Environmental Protection Agency and any
associated systems, necessary information technology infrastructure, or
public access software tools to ensure access to compliance data and
related information.
(b) Communications With ICIS.--In addition to amounts otherwise
available, there is appropriated to the Administrator of the
Environmental Protection Agency for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $3,000,000, to remain
available until September 30, 2031, for grants to States, Indian tribes,
and air pollution control agencies (as such terms are defined in section
302 of the Clean Air Act (42 U.S.C. 7602)) to update their systems to
ensure communication with the Integrated Compliance Information System
of the Environmental Protection Agency and any associated systems.
(c) Inspection Software.--In addition to amounts otherwise
available, there is appropriated to the Administrator of the
Environmental Protection Agency for fiscal year 2022, out of any money
[[Page 136 STAT. 2072]]
in the Treasury not otherwise appropriated, $4,000,000, to remain
available until September 30, 2031--
(1) to acquire or update inspection software for use by the
Environmental Protection Agency, States, Indian tribes, and air
pollution control agencies (as such terms are defined in section
302 of the Clean Air Act (42 U.S.C. 7602)); or
(2) to acquire necessary devices on which to run such
inspection software.
SEC. 60111. GREENHOUSE GAS CORPORATE REPORTING.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Administrator of the Environmental Protection
Agency for fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $5,000,000, to remain available until September
30, 2031, for the Environmental Protection Agency to support--
(1) enhanced standardization and transparency of corporate
climate action commitments and plans to reduce greenhouse gas
emissions;
(2) enhanced transparency regarding progress toward meeting
such commitments and implementing such plans; and
(3) progress toward meeting such commitments and
implementing such plans.
(b) Definition of Greenhouse Gas.--In this section, the term
``greenhouse gas'' means the air pollutants carbon dioxide,
hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and sulfur
hexafluoride.
SEC. 60112. <<NOTE: 42 USC 4321 note.>> ENVIRONMENTAL PRODUCT
DECLARATION ASSISTANCE.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Administrator of the Environmental Protection
Agency for fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $250,000,000, to remain available until
September 30, 2031, to develop and carry out a program to support the
development, enhanced standardization and transparency, and reporting
criteria for environmental product declarations that include
measurements of the embodied greenhouse gas emissions of the material or
product associated with all relevant stages of production, use, and
disposal, and conform with international standards, for construction
materials and products by--
(1) providing grants to businesses that manufacture
construction materials and products for developing and verifying
environmental product declarations, and to States, Indian
Tribes, and nonprofit organizations that will support such
businesses;
(2) providing technical assistance to businesses that
manufacture construction materials and products in developing
and verifying environmental product declarations, and to States,
Indian Tribes, and nonprofit organizations that will support
such businesses; and
(3) carrying out other activities that assist in measuring,
reporting, and steadily reducing the quantity of embodied carbon
of construction materials and products.
(b) Administrative Costs.--Of the amounts made available under this
section, the Administrator of the Environmental Protection Agency shall
reserve 5 percent for administrative costs necessary to carry out this
section.
(c) Definitions.--In this section:
[[Page 136 STAT. 2073]]
(1) Greenhouse gas.--The term ``greenhouse gas'' means the
air pollutants carbon dioxide, hydrofluorocarbons, methane,
nitrous oxide, perfluorocarbons, and sulfur hexafluoride.
(2) State.--The term ``State'' has the meaning given to that
term in section 302(d) of the Clean Air Act (42 U.S.C. 7602(d)).
SEC. 60113. METHANE EMISSIONS REDUCTION PROGRAM.
The Clean Air Act is amended by inserting after section 135 of such
Act, as added by section 60107 of this Act, the following:
``SEC. 136. <<NOTE: 42 USC 7436.>> METHANE EMISSIONS AND WASTE
REDUCTION INCENTIVE PROGRAM FOR PETROLEUM
AND NATURAL GAS SYSTEMS.
``(a) Incentives for Methane Mitigation and Monitoring.--In addition
to amounts otherwise available, there is appropriated to the
Administrator for fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $850,000,000, to remain available until
September 30, 2028--
``(1) for grants, rebates, contracts, loans, and other
activities of the Environmental Protection Agency for the
purposes of providing financial and technical assistance to
owners and operators of applicable facilities to prepare and
submit greenhouse gas reports under subpart W of part 98 of
title 40, Code of Federal Regulations;
``(2) for grants, rebates, contracts, loans, and other
activities of the Environmental Protection Agency authorized
under subsections (a) through (c) of section 103 for methane
emissions monitoring;
``(3) for grants, rebates, contracts, loans, and other
activities of the Environmental Protection Agency for the
purposes of providing financial and technical assistance to
reduce methane and other greenhouse gas emissions from petroleum
and natural gas systems, mitigate legacy air pollution from
petroleum and natural gas systems, and provide funding for--
``(A) improving climate resiliency of communities
and petroleum and natural gas systems;
``(B) improving and deploying industrial equipment
and processes that reduce methane and other greenhouse
gas emissions and waste;
``(C) supporting innovation in reducing methane and
other greenhouse gas emissions and waste from petroleum
and natural gas systems;
``(D) permanently shutting in and plugging wells on
non-Federal land;
``(E) mitigating health effects of methane and other
greenhouse gas emissions, and legacy air pollution from
petroleum and natural gas systems in low-income and
disadvantaged communities; and
``(F) supporting environmental restoration; and
``(4) to cover all direct and indirect costs required to
administer this section, prepare inventories, gather empirical
data, and track emissions.
``(b) Incentives for Methane Mitigation From Conventional Wells.--In
addition to amounts otherwise available, there is appropriated to the
Administrator for fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $700,000,000, to remain available until
September 30, 2028, for
[[Page 136 STAT. 2074]]
activities described in paragraphs (1) through (4) of subsection (a) at
marginal conventional wells.
``(c) Waste Emissions Charge.--The Administrator shall impose and
collect a charge on methane emissions that exceed an applicable waste
emissions threshold under subsection (f) from an owner or operator of an
applicable facility that reports more than 25,000 metric tons of carbon
dioxide equivalent of greenhouse gases emitted per year pursuant to
subpart W of part 98 of title 40, Code of Federal Regulations,
regardless of the reporting threshold under that subpart.
``(d) <<NOTE: Definition.>> Applicable Facility.--For purposes of
this section, the term `applicable facility' means a facility within the
following industry segments, as defined in subpart W of part 98 of title
40, Code of Federal Regulations:
``(1) Offshore petroleum and natural gas production.
``(2) Onshore petroleum and natural gas production.
``(3) Onshore natural gas processing.
``(4) Onshore natural gas transmission compression.
``(5) Underground natural gas storage.
``(6) Liquefied natural gas storage.
``(7) Liquefied natural gas import and export equipment.
``(8) Onshore petroleum and natural gas gathering and
boosting.
``(9) Onshore natural gas transmission pipeline.
``(e) <<NOTE: Time periods.>> Charge Amount.--The amount of a
charge under subsection (c) for an applicable facility shall be equal to
the product obtained by multiplying--
``(1) the number of metric tons of methane emissions
reported pursuant to subpart W of part 98 of title 40, Code of
Federal Regulations, for the applicable facility that exceed the
applicable annual waste emissions threshold listed in subsection
(f) during the previous reporting period; and
``(2)(A) $900 for emissions reported for calendar year 2024;
``(B) $1,200 for emissions reported for calendar year 2025;
or
``(C) $1,500 for emissions reported for calendar year 2026
and each year thereafter.
``(f) <<NOTE: Fees.>> Waste Emissions Threshold.--
``(1) Petroleum and natural gas production.--With respect to
imposing and collecting the charge under subsection (c) for an
applicable facility in an industry segment listed in paragraph
(1) or (2) of subsection (d), the Administrator shall impose and
collect the charge on the reported metric tons of methane
emissions from such facility that exceed--
``(A) 0.20 percent of the natural gas sent to sale
from such facility; or
``(B) 10 metric tons of methane per million barrels
of oil sent to sale from such facility, if such facility
sent no natural gas to sale.
``(2) Nonproduction petroleum and natural gas systems.--With
respect to imposing and collecting the charge under subsection
(c) for an applicable facility in an industry segment listed in
paragraph (3), (6), (7), or (8) of subsection (d), the
Administrator shall impose and collect the charge on the
reported metric tons of methane emissions that exceed 0.05
percent of the natural gas sent to sale from or through such
facility.
[[Page 136 STAT. 2075]]
``(3) Natural gas transmission.--With respect to imposing
and collecting the charge under subsection (c) for an applicable
facility in an industry segment listed in paragraph (4), (5), or
(9) of subsection (d), the Administrator shall impose and
collect the charge on the reported metric tons of methane
emissions that exceed 0.11 percent of the natural gas sent to
sale from or through such facility.
``(4) Common ownership or control.--In calculating the total
emissions charge obligation for facilities under common
ownership or control, the Administrator shall allow for the
netting of emissions by reducing the total obligation to account
for facility emissions levels that are below the applicable
thresholds within and across all applicable segments identified
in subsection (d).
``(5) <<NOTE: Determination.>> Exemption.--Charges shall
not be imposed pursuant to paragraph (1) on emissions that
exceed the waste emissions threshold specified in such paragraph
if such emissions are caused by unreasonable delay, as
determined by the Administrator, in environmental permitting of
gathering or transmission infrastructure necessary for offtake
of increased volume as a result of methane emissions mitigation
implementation.
``(6) <<NOTE: Determination.>> Exemption for regulatory
compliance.--
``(A) In general.--Charges shall not be imposed
pursuant to subsection (c) on an applicable facility
that is subject to and in compliance with methane
emissions requirements pursuant to subsections (b) and
(d) of section 111 upon a determination by the
Administrator that--
``(i) methane emissions standards and plans
pursuant to subsections (b) and (d) of section 111
have been approved and are in effect in all States
with respect to the applicable facilities; and
``(ii) compliance with the requirements
described in clause (i) will result in equivalent
or greater emissions reductions as would be
achieved by the proposed rule of the Administrator
entitled `Standards of Performance for New,
Reconstructed, and Modified Sources and Emissions
Guidelines for Existing Sources: Oil and Natural
Gas Sector Climate Review' (86 Fed. Reg. 63110
(November 15, 2021)), if such rule had been
finalized and implemented.
``(B) <<NOTE: Time period.>> Resumption of
charge.--If the conditions in clause (i) or (ii) of
subparagraph (A) cease to apply after the Administrator
has made the determination in that subparagraph, the
applicable facility will again be subject to the charge
under subsection (c) beginning in the first calendar
year in which the conditions in either clause (i) or
(ii) of that subparagraph are no longer met.
``(7) <<NOTE: Determination.>> Plugged wells.--Charges
shall not be imposed with respect to the emissions rate from any
well that has been permanently shut-in and plugged in the
previous year in accordance with all applicable closure
requirements, as determined by the Administrator.
``(g) Period.--The charge under subsection (c) shall be imposed and
collected beginning with respect to emissions reported for calendar year
2024 and for each year thereafter.
[[Page 136 STAT. 2076]]
``(h) Reporting.--Not later than 2 years after the date of enactment
of this section, the Administrator shall revise the requirements of
subpart W of part 98 of title 40, Code of Federal Regulations, to ensure
the reporting under such subpart, and calculation of charges under
subsections (e) and (f) of this section, are based on empirical data,
including data collected pursuant to subsection (a)(4), accurately
reflect the total methane emissions and waste emissions from the
applicable facilities, and allow owners and operators of applicable
facilities to submit empirical emissions data, in a manner to be
prescribed by the Administrator, to demonstrate the extent to which a
charge under subsection (c) is owed.
``(i) Definition of Greenhouse Gas.--In this section, the term
`greenhouse gas' means the air pollutants carbon dioxide,
hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and sulfur
hexafluoride.''.
SEC. 60114. CLIMATE POLLUTION REDUCTION GRANTS.
The Clean Air Act is amended by inserting after section 136 of such
Act, as added by section 60113 of this Act, the following:
``SEC. 137. <<NOTE: 42 USC 7437.>> GREENHOUSE GAS AIR POLLUTION
PLANS AND IMPLEMENTATION GRANTS.
``(a) Appropriations.--
``(1) Greenhouse gas air pollution planning grants.--In
addition to amounts otherwise available, there is appropriated
to the Administrator for fiscal year 2022, out of any amounts in
the Treasury not otherwise appropriated, $250,000,000, to remain
available until September 30, 2031, to carry out subsection (b).
``(2) Greenhouse gas air pollution implementation grants.--
In addition to amounts otherwise available, there is
appropriated to the Administrator for fiscal year 2022, out of
any amounts in the Treasury not otherwise appropriated,
$4,750,000,000, to remain available until September 30, 2026, to
carry out subsection (c).
``(3) Administrative costs.--Of the funds made available
under paragraph (2), the Administrator shall reserve 3 percent
for administrative costs necessary to carry out this section, to
provide technical assistance to eligible entities, to develop a
plan that could be used as a model by grantees in developing a
plan under subsection (b), and to model the effects of plans
described in this section.
``(b) Greenhouse Gas Air Pollution Planning Grants.--The
Administrator shall make a grant to at least one eligible entity in each
State for the costs of developing a plan for the reduction of greenhouse
gas air pollution to be submitted with an application for a grant under
subsection (c). Each such plan shall include programs, policies,
measures, and projects that will achieve or facilitate the reduction of
greenhouse gas air pollution. Not later than 270
days <<NOTE: Deadline. Publication.>> after the date of enactment of
this section, the Administrator shall publish a funding opportunity
announcement for grants under this subsection.
``(c) Greenhouse Gas Air Pollution Reduction Implementation
Grants.--
``(1) In general.--The Administrator shall competitively
award grants to eligible entities to implement plans developed
under subsection (b).
[[Page 136 STAT. 2077]]
``(2) Application.--To apply for a grant under this
subsection, an eligible entity shall submit to the Administrator
an application at such time, in such manner, and containing such
information as the Administrator shall require, which such
application shall include information regarding the degree to
which greenhouse gas air pollution is projected to be reduced in
total and with respect to low-income and disadvantaged
communities.
``(3) <<NOTE: Determination.>> Terms and conditions.--The
Administrator shall make funds available to a grantee under this
subsection in such amounts, upon such a schedule, and subject to
such conditions based on its performance in implementing its
plan submitted under this section and in achieving projected
greenhouse gas air pollution reduction, as determined by the
Administrator.
``(d) Definitions.--In this section:
``(1) Eligible entity.--The term `eligible entity' means--
``(A) a State;
``(B) an air pollution control agency;
``(C) a municipality;
``(D) an Indian tribe; and
``(E) a group of one or more entities listed in
subparagraphs (A) through (D).
``(2) Greenhouse gas.--The term `greenhouse gas' means the
air pollutants carbon dioxide, hydrofluorocarbons, methane,
nitrous oxide, perfluorocarbons, and sulfur hexafluoride.''.
SEC. 60115. ENVIRONMENTAL PROTECTION AGENCY EFFICIENT, ACCURATE,
AND TIMELY REVIEWS.
In addition to amounts otherwise available, there is appropriated
to the Environmental Protection Agency for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, $40,000,000, to remain
available until September 30, 2026, to provide for the development of
efficient, accurate, and timely reviews for permitting and approval
processes through the hiring and training of personnel, the development
of programmatic documents, the procurement of technical or scientific
services for reviews, the development of environmental data or
information systems, stakeholder and community engagement, the purchase
of new equipment for environmental analysis, and the development of
geographic information systems and other analysis tools, techniques, and
guidance to improve agency transparency, accountability, and public
engagement.
SEC. 60116. <<NOTE: 42 USC 4321 note.>> LOW-EMBODIED CARBON
LABELING FOR CONSTRUCTION MATERIALS.
(a) <<NOTE: Consultation.>> In General.--In addition to amounts
otherwise available, there is appropriated to the Administrator of the
Environmental Protection Agency for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $100,000,000, to remain
available until September 30, 2026, for necessary administrative costs
of the Administrator of the Environmental Protection Agency to carry out
this section and to develop and carry out a program, in consultation
with the Administrator of the Federal Highway Administration for
construction materials used in transportation projects and the
Administrator of General Services for construction materials used for
Federal buildings, to identify and label construction materials and
products that have substantially lower levels of embodied greenhouse gas
emissions associated with all relevant
[[Page 136 STAT. 2078]]
stages of production, use, and disposal, as compared to estimated
industry averages of similar materials or products, as determined by the
Administrator of the Environmental Protection Agency, based on--
(1) environmental product declarations; or
(2) <<NOTE: Determinations.>> determinations by State
agencies, as verified by the Administrator of the Environmental
Protection Agency.
(b) Definition of Greenhouse Gas.--In this section, the term
``greenhouse gas'' means the air pollutants carbon dioxide,
hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and sulfur
hexafluoride.
Subtitle B--Hazardous Materials
SEC. 60201. ENVIRONMENTAL AND CLIMATE JUSTICE BLOCK GRANTS.
The Clean Air Act is amended by inserting after section 137, as
added by subtitle A of this title, the following:
``SEC. 138. <<NOTE: 42 USC 7438.>> ENVIRONMENTAL AND CLIMATE
JUSTICE BLOCK GRANTS.
``(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Administrator for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated--
``(1) $2,800,000,000 to remain available until September 30,
2026, to award grants for the activities described in subsection
(b); and
``(2) $200,000,000 to remain available until September 30,
2026, to provide technical assistance to eligible entities
related to grants awarded under this section.
``(b) Grants.--
``(1) In general.--The Administrator shall use amounts made
available under subsection (a)(1) to award grants for periods of
up to 3 years to eligible entities to carry out activities
described in paragraph (2) that benefit disadvantaged
communities, as defined by the Administrator.
``(2) Eligible activities.--An eligible entity may use a
grant awarded under this subsection for--
``(A) community-led air and other pollution
monitoring, prevention, and remediation, and investments
in low- and zero-emission and resilient technologies and
related infrastructure and workforce development that
help reduce greenhouse gas emissions and other air
pollutants;
``(B) mitigating climate and health risks from urban
heat islands, extreme heat, wood heater emissions, and
wildfire events;
``(C) climate resiliency and adaptation;
``(D) reducing indoor toxics and indoor air
pollution; or
``(E) facilitating engagement of disadvantaged
communities in State and Federal advisory groups,
workshops, rulemakings, and other public processes.
``(3) <<NOTE: Definition.>> Eligible entities.--In this
subsection, the term `eligible entity' means--
``(A) a partnership between--
``(i) an Indian tribe, a local government, or
an institution of higher education; and
[[Page 136 STAT. 2079]]
``(ii) a community-based nonprofit
organization;
``(B) a community-based nonprofit organization; or
``(C) a partnership of community-based nonprofit
organizations.
``(c) Administrative Costs.--The Administrator shall reserve 7
percent of the amounts made available under subsection (a) for
administrative costs to carry out this section.
``(d) Definition of Greenhouse Gas.--In this section, the term
`greenhouse gas' means the air pollutants carbon dioxide,
hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and sulfur
hexafluoride.''.
Subtitle C--United States Fish and Wildlife Service
SEC. 60301. ENDANGERED SPECIES ACT RECOVERY PLANS.
In addition to amounts otherwise available, there is appropriated to
the United States Fish and Wildlife Service for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated, $125,000,000, to
remain available until expended, for the purposes of developing and
implementing recovery plans under paragraphs (1), (3), and (4) of
subsection (f) of section 4 of the Endangered Species Act of 1973 (16
U.S.C. 1533(f)).
SEC. 60302. FUNDING FOR THE UNITED STATES FISH AND WILDLIFE
SERVICE TO ADDRESS WEATHER EVENTS.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the United States Fish and Wildlife Service for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $121,250,000, to remain available until September 30,
2026, to make direct expenditures, award grants, and enter into
contracts and cooperative agreements for the purposes of rebuilding and
restoring units of the National Wildlife Refuge System and State
wildlife management areas by--
(1) addressing the threat of invasive species;
(2) increasing the resiliency and capacity of habitats and
infrastructure to withstand weather events; and
(3) reducing the amount of damage caused by weather events.
(b) Administrative Costs.--In addition to amounts otherwise
available, there is appropriated to the United States Fish and Wildlife
Service for fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $3,750,000, to remain available until September
30, 2026, for necessary administrative expenses associated with carrying
out this section.
Subtitle D--Council on Environmental Quality
SEC. 60401. ENVIRONMENTAL AND CLIMATE DATA COLLECTION.
In addition to amounts otherwise available, there is appropriated to
the Chair of the Council on Environmental Quality for fiscal year 2022,
out of any money in the Treasury not otherwise
[[Page 136 STAT. 2080]]
appropriated, $32,500,000, to remain available until September 30,
2026--
(1) to support data collection efforts relating to--
(A) disproportionate negative environmental harms
and climate impacts; and
(B) cumulative impacts of pollution and temperature
rise;
(2) to establish, expand, and maintain efforts to track
disproportionate burdens and cumulative impacts and provide
academic and workforce support for analytics and informatics
infrastructure and data collection systems; and
(3) to support efforts to ensure that any mapping or
screening tool is accessible to community-based organizations
and community members.
SEC. 60402. COUNCIL ON ENVIRONMENTAL QUALITY EFFICIENT AND
EFFECTIVE ENVIRONMENTAL REVIEWS.
In addition to amounts otherwise available, there is appropriated to
the Chair of the Council on Environmental Quality for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated,
$30,000,000, to remain available until September 30, 2026, to carry out
the Council on Environmental Quality's functions and for the purposes of
training personnel, developing programmatic environmental documents, and
developing tools, guidance, and techniques to improve stakeholder and
community engagement.
Subtitle E--Transportation and Infrastructure
SEC. 60501. NEIGHBORHOOD ACCESS AND EQUITY GRANT PROGRAM.
(a) In General.--Chapter 1 of title 23, United States Code, is
amended by adding at the end the following:
``Sec. 177. <<NOTE: 23 USC 177.>> Neighborhood access and equity
grant program
``(a) In General.--In addition to amounts otherwise available, there
is appropriated for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, $1,893,000,000, to remain available until
September 30, 2026, to the Administrator of the Federal Highway
Administration for competitive grants to eligible entities described in
subsection (b)--
``(1) to improve walkability, safety, and affordable
transportation access through projects that are context-
sensitive--
``(A) to remove, remediate, or reuse a facility
described in subsection (c)(1);
``(B) to replace a facility described in subsection
(c)(1) with a facility that is at-grade or lower speed;
``(C) to retrofit or cap a facility described in
subsection (c)(1);
``(D) to build or improve complete streets, multiuse
trails, regional greenways, or active transportation
networks and spines; or
``(E) to provide affordable access to essential
destinations, public spaces, or transportation links and
hubs;
``(2) to mitigate or remediate negative impacts on the human
or natural environment resulting from a facility
[[Page 136 STAT. 2081]]
described in subsection (c)(2) in a disadvantaged or underserved
community through--
``(A) noise barriers to reduce impacts resulting
from a facility described in subsection (c)(2);
``(B) technologies, infrastructure, and activities
to reduce surface transportation-related greenhouse gas
emissions and other air pollution;
``(C) natural infrastructure, pervious, permeable,
or porous pavement, or protective features to reduce or
manage stormwater run-off resulting from a facility
described in subsection (c)(2);
``(D) infrastructure and natural features to reduce
or mitigate urban heat island hot spots in the
transportation right-of-way or on surface transportation
facilities; or
``(E) safety improvements for vulnerable road users;
and
``(3) for planning and capacity building activities in
disadvantaged or underserved communities to--
``(A) <<NOTE: Assessment.>> identify, monitor, or
assess local and ambient air quality, emissions of
transportation greenhouse gases, hot spot areas of
extreme heat or elevated air pollution, gaps in tree
canopy coverage, or flood prone transportation
infrastructure;
``(B) <<NOTE: Assessment.>> assess transportation
equity or pollution impacts and develop local anti-
displacement policies and community benefit agreements;
``(C) conduct predevelopment activities for projects
eligible under this subsection;
``(D) expand public participation in transportation
planning by individuals and organizations in
disadvantaged or underserved communities; or
``(E) administer or obtain technical assistance
related to activities described in this subsection.
``(b) Eligible Entities Described.--An eligible entity referred to
in subsection (a) is--
``(1) a State;
``(2) a unit of local government;
``(3) a political subdivision of a State;
``(4) an entity described in section 207(m)(1)(E);
``(5) a territory of the United States;
``(6) a special purpose district or public authority with a
transportation function;
``(7) a metropolitan planning organization (as defined in
section 134(b)(2)); or
``(8) with respect to a grant described in subsection
(a)(3), in addition to an eligible entity described in
paragraphs (1) through (7), a nonprofit organization or
institution of higher education that has entered into a
partnership with an eligible entity described in paragraphs (1)
through (7).
``(c) Facility Described.--A facility referred to in subsection (a)
is--
``(1) a surface transportation facility for which high
speeds, grade separation, or other design factors create an
obstacle to connectivity within a community; or
``(2) a surface transportation facility which is a source of
air pollution, noise, stormwater, or other burden to a
disadvantaged or underserved community.
[[Page 136 STAT. 2082]]
``(d) Investment in Economically Disadvantaged Communities.--
``(1) In general.--In addition to amounts otherwise
available, there is appropriated for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated,
$1,262,000,000, to remain available until September 30, 2026, to
the Administrator of the Federal Highway Administration to
provide grants for projects in communities described in
paragraph (2) for the same purposes and administered in the same
manner as described in subsection (a).
``(2) Communities described.--A community referred to in
paragraph (1) is a community that--
``(A) is economically disadvantaged, underserved, or
located in an area of persistent poverty;
``(B) has entered or will enter into a community
benefits agreement with representatives of the
community;
``(C) has an anti-displacement policy, a community
land trust, or a community advisory board in effect; or
``(D) has demonstrated a plan for employing local
residents in the area impacted by the activity or
project proposed under this section.
``(e) Administration.--
``(1) In general.--A project carried out under subsection
(a) or (d) shall be treated as a project on a Federal-aid
highway.
``(2) Compliance with existing requirements.--Funds made
available for a grant under this section and administered by or
through a State department of transportation shall be expended
in compliance with the U.S. Department of Transportation's
Disadvantaged Business Enterprise Program.
``(f) Cost Share.--The Federal share of the cost of an activity
carried out using a grant awarded under this section shall be not more
than 80 percent, except that the Federal share of the cost of a project
in a disadvantaged or underserved community may be up to 100 percent.
``(g) Technical Assistance.--In addition to amounts otherwise
available, there is appropriated for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $50,000,000, to remain
available until September 30, 2026, to the Administrator of the Federal
Highway Administration for--
``(1) guidance, technical assistance, templates, training,
or tools to facilitate efficient and effective contracting,
design, and project delivery by units of local government;
``(2) subgrants to units of local government to build
capacity of such units of local government to assume
responsibilities to deliver surface transportation projects; and
``(3) operations and administration of the Federal Highway
Administration.
``(h) Limitations.--Amounts made available under this section shall
not--
``(1) be subject to any restriction or limitation on the
total amount of funds available for implementation or execution
of programs authorized for Federal-aid highways; and
``(2) be used for a project for additional through travel
lanes for single-occupant passenger vehicles.''.
[[Page 136 STAT. 2083]]
(b) Clerical Amendment.--The analysis for chapter 1 of title 23,
United States Code, <<NOTE: 23 USC 101 prec.>> is amended by adding at
the end the following:
``177. Neighborhood access and equity grant program.''.
SEC. 60502. ASSISTANCE FOR FEDERAL BUILDINGS.
In addition to amounts otherwise available, there is appropriated
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $250,000,000, to remain available until September 30,
2031, to be deposited in the Federal Buildings Fund established under
section 592 of title 40, United States Code, for measures necessary to
convert facilities of the Administrator of General Services to high-
performance green buildings (as defined in section 401 of the Energy
Independence and Security Act of 2007 (42 U.S.C. 17061)).
SEC. 60503. USE OF LOW-CARBON MATERIALS.
(a) <<NOTE: Determination.>> Appropriation.--In addition to amounts
otherwise available, there is appropriated for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated, $2,150,000,000, to
remain available until September 30, 2026, to be deposited in the
Federal Buildings Fund established under section 592 of title 40, United
States Code, to acquire and install materials and products for use in
the construction or alteration of buildings under the jurisdiction,
custody, and control of the General Services Administration that have
substantially lower levels of embodied greenhouse gas emissions
associated with all relevant stages of production, use, and disposal as
compared to estimated industry averages of similar materials or
products, as determined by the Administrator of the Environmental
Protection Agency.
(b) Definition of Greenhouse Gas.--In this section, the term
``greenhouse gas'' means the air pollutants carbon dioxide,
hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and sulfur
hexafluoride.
SEC. 60504. GENERAL SERVICES ADMINISTRATION EMERGING TECHNOLOGIES.
In addition to amounts otherwise available, there is appropriated to
the Administrator of General Services for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, $975,000,000, to
remain available until September 30, 2026, to be deposited in the
Federal Buildings Fund established under section 592 of title 40, United
States Code, for emerging and sustainable technologies, and related
sustainability and environmental programs.
SEC. 60505. ENVIRONMENTAL REVIEW IMPLEMENTATION FUNDS.
(a) In General.--Chapter 1 of title 23, United States Code, is
further amended by adding at the end the following:
``Sec. 178. <<NOTE: 23 USC 178.>> Environmental review
implementation funds
``(a) Establishment.--In addition to amounts otherwise available,
for fiscal year 2022, there is appropriated to the Administrator, out of
any money in the Treasury not otherwise appropriated, $100,000,000, to
remain available until September 30, 2026, for the purpose of
facilitating the development and review of documents for the
environmental review process for proposed projects through--
[[Page 136 STAT. 2084]]
``(1) the provision of guidance, technical assistance,
templates, training, or tools to facilitate an efficient and
effective environmental review process for surface
transportation projects and any administrative expenses of the
Federal Highway Administration to conduct activities described
in this section; and
``(2) providing funds made available under this subsection
to eligible entities--
``(A) to build capacity of such eligible entities to
conduct environmental review processes;
``(B) to facilitate the environmental review process
for proposed projects by--
``(i) defining the scope or study areas;
``(ii) identifying impacts, mitigation
measures, and reasonable alternatives;
``(iii) preparing planning and environmental
studies and other documents prior to and during
the environmental review process, for potential
use in the environmental review process in
accordance with applicable statutes and
regulations;
``(iv) conducting public engagement
activities; and
``(v) carrying out permitting or other
activities, as the Administrator determines to be
appropriate, to support the timely completion of
an environmental review process required for a
proposed project; and
``(C) for administrative expenses of the eligible
entity to conduct any of the activities described in
subparagraphs (A) and (B).
``(b) Cost Share.--
``(1) In general.--The Federal share of the cost of an
activity carried out under this section by an eligible entity
shall be not more than 80 percent.
``(2) Source of funds.--The non-Federal share of the cost of
an activity carried out under this section by an eligible entity
may be satisfied using funds made available to the eligible
entity under any other Federal, State, or local grant program.
``(c) Definitions.--In this section:
``(1) Administrator.--The term `Administrator' means the
Administrator of the Federal Highway Administration.
``(2) Eligible entity.--The term `eligible entity' means--
``(A) a State;
``(B) a unit of local government;
``(C) a political subdivision of a State;
``(D) a territory of the United States;
``(E) an entity described in section 207(m)(1)(E);
``(F) a recipient of funds under section 203; or
``(G) a metropolitan planning organization (as
defined in section 134(b)(2)).
``(3) Environmental review process.--The term `environmental
review process' has the meaning given the term in section
139(a)(5).
``(4) Proposed project.--The term `proposed project' means a
surface transportation project for which an environmental review
process is required.''.
[[Page 136 STAT. 2085]]
(b) Clerical Amendment.--The analysis for chapter 1 of title 23,
United States Code, <<NOTE: 23 USC 101 prec.>> is further amended by
adding at the end the following:
``178. Environmental review implementation funds.''.
SEC. 60506. LOW-CARBON TRANSPORTATION MATERIALS GRANTS.
(a) In General.--Chapter 1 of title 23, United States Code, is
further amended by adding at the end the following:
``Sec. 179. <<NOTE: 23 USC 179.>> Low-carbon transportation
materials grants
``(a) Federal Highway Administration Appropriation.--In addition to
amounts otherwise available, there is appropriated for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated,
$2,000,000,000, to remain available until September 30, 2026, to the
Administrator to reimburse or provide incentives to eligible recipients
for the use, in projects, of construction materials and products that
have substantially lower levels of embodied greenhouse gas emissions
associated with all relevant stages of production, use, and disposal as
compared to estimated industry averages of similar materials or
products, as determined by the Administrator of the Environmental
Protection Agency, and for the operations and administration of the
Federal Highway Administration to carry out this section.
``(b) Reimbursement of Incremental Costs; Incentives.--
``(1) In general.--The Administrator shall, subject to the
availability of funds, either reimburse or provide incentives to
eligible recipients that use low-embodied carbon construction
materials and products on a project funded under this title.
``(2) Reimbursement and incentive amounts.--
``(A) <<NOTE: Determination. Verification.>>
Incremental amount.--The amount of reimbursement under
paragraph (1) shall be equal to the incrementally higher
cost of using such materials relative to the cost of
using traditional materials, as determined by the
eligible recipient and verified by the Administrator.
``(B) Incentive amount.--The amount of an incentive
under paragraph (1) shall be equal to 2 percent of the
cost of using low-embodied carbon construction materials
and products on a project funded under this title.
``(3) Federal share.--If a reimbursement or incentive is
provided under paragraph (1), the total Federal share payable
for the project for which the reimbursement or incentive is
provided shall be up to 100 percent.
``(4) Limitations.--
``(A) In general.--The Administrator shall only
provide a reimbursement or incentive under paragraph (1)
for a project on a--
``(i) Federal-aid highway;
``(ii) tribal transportation facility;
``(iii) Federal lands transportation facility;
or
``(iv) Federal lands access transportation
facility.
``(B) Other restrictions.--Amounts made available
under this section shall not be subject to any
restriction or limitation on the total amount of funds
available for implementation or execution of programs
authorized for Federal-aid highways.
``(C) Single occupant passenger vehicles.--Funds
made available under this section shall not be used for
[[Page 136 STAT. 2086]]
projects that result in additional through travel lanes
for single occupant passenger vehicles.
``(5) <<NOTE: Review.>> Materials identification.--The
Administrator shall review the low-embodied carbon construction
materials and products identified by the Administrator of the
Environmental Protection Agency and shall identify low-embodied
carbon construction materials and products--
``(A) appropriate for use in projects eligible under
this title; and
``(B) eligible for reimbursement or incentives under
this section.
``(c) Definitions.--In this section:
``(1) Administrator.--The term `Administrator' means the
Administrator of the Federal Highway Administration.
``(2) Eligible recipient.--The term `eligible recipient'
means--
``(A) a State;
``(B) a unit of local government;
``(C) a political subdivision of a State;
``(D) a territory of the United States;
``(E) an entity described in section 207(m)(1)(E);
``(F) a recipient of funds under section 203;
``(G) a metropolitan planning organization (as
defined in section 134(b)(2)); or
``(H) a special purpose district or public authority
with a transportation function.
``(3) Greenhouse gas.--The term `greenhouse gas' means the
air pollutants carbon dioxide, hydrofluorocarbons, methane,
nitrous oxide, perfluorocarbons, and sulfur hexafluoride.''.
(b) Clerical Amendment.--The analysis for chapter 1 of title 23,
United States Code, <<NOTE: 23 USC 101 prec.>> is further amended by
adding at the end the following:
``179. Low-carbon transportation materials grants.''.
TITLE VII--COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS
SEC. 70001. DHS OFFICE OF CHIEF READINESS SUPPORT OFFICER.
In addition to the amounts otherwise available, there is
appropriated to the Secretary of Homeland Security for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated,
$500,000,000, to remain available until September 30, 2028, for the
Office of the Chief Readiness Support Officer to carry out
sustainability and environmental programs.
SEC. 70002. UNITED STATES POSTAL SERVICE CLEAN FLEETS.
In addition to amounts otherwise available, there is appropriated to
the United States Postal Service for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, the following amounts, to be
deposited into the Postal Service Fund established under section 2003 of
title 39, United States Code:
(1) $1,290,000,000, to remain available through September
30, 2031, for the purchase of zero-emission delivery vehicles.
[[Page 136 STAT. 2087]]
(2) $1,710,000,000, to remain available through September
30, 2031, for the purchase, design, and installation of the
requisite infrastructure to support zero-emission delivery
vehicles at facilities that the United States Postal Service
owns or leases from non-Federal entities.
SEC. 70003. UNITED STATES POSTAL SERVICE OFFICE OF INSPECTOR
GENERAL.
In addition to amounts otherwise available, there is appropriated to
the Office of Inspector General of the United States Postal Service for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $15,000,000, to remain available through September 30,
2031, to support oversight of United States Postal Service activities
implemented pursuant to this Act.
SEC. 70004. GOVERNMENT ACCOUNTABILITY OFFICE OVERSIGHT.
In addition to amounts otherwise available, there is appropriated to
the Comptroller General of the United States for fiscal year 2022, out
of any money in the Treasury not otherwise appropriated, $25,000,000, to
remain available until September 30, 2031, for necessary expenses of the
Government Accountability Office to support the oversight of--
(1) the distribution and use of funds appropriated under
this Act; and
(2) whether the economic, social, and environmental impacts
of the funds described in paragraph (1) are equitable.
SEC. 70005. OFFICE OF MANAGEMENT AND BUDGET OVERSIGHT.
In addition to amounts otherwise available, there are appropriated
to the Director of the Office of Management and Budget for fiscal year
2022, out of any money in the Treasury not otherwise appropriated,
$25,000,000, to remain available until September 30, 2026, for necessary
expenses to--
(1) oversee the implementation of this Act; and
(2) track labor, equity, and environmental standards and
performance.
SEC. 70006. FEMA BUILDING MATERIALS PROGRAM.
Through September 30, 2026, <<NOTE: Time period.>> the
Administrator of the Federal Emergency Management Agency may provide
financial assistance under sections 203(h), 404(a), and 406(b) of the
Robert T. Stafford Disaster Relief and Emergency Assistance Act (42
U.S.C. 5133(h), 42 U.S.C. 5170c(a), 42 U.S.C. 5172(b)) for--
(1) costs associated with low-carbon materials; and
(2) incentives that encourage low-carbon and net-zero energy
projects.
SEC. 70007. FEDERAL PERMITTING IMPROVEMENT STEERING COUNCIL
ENVIRONMENTAL REVIEW IMPROVEMENT FUND
MANDATORY FUNDING.
In addition to amounts otherwise available, there is appropriated to
the Federal Permitting Improvement Steering Council Environmental Review
Improvement Fund, out of any money in the Treasury not otherwise
appropriated, $350,000,000 for fiscal year 2023, to remain available
through September 30, 2031.
[[Page 136 STAT. 2088]]
TITLE VIII--COMMITTEE ON INDIAN AFFAIRS
SEC. 80001. TRIBAL CLIMATE RESILIENCE.
(a) Tribal Climate Resilience and Adaptation.--In addition to
amounts otherwise available, there is appropriated to the Director of
the Bureau of Indian Affairs for fiscal year 2022, out of any money in
the Treasury not otherwise appropriated, $220,000,000, to remain
available until September 30, 2031, for Tribal climate resilience and
adaptation programs.
(b) Bureau of Indian Affairs Fish Hatcheries.--In addition to
amounts otherwise available, there is appropriated to the Director of
the Bureau of Indian Affairs for fiscal year 2022, out of any money in
the Treasury not otherwise appropriated, $10,000,000, to remain
available until September 30, 2031, for fish hatchery operations and
maintenance programs of the Bureau of Indian Affairs.
(c) Administration.--In addition to amounts otherwise available,
there is appropriated to the Director of the Bureau of Indian Affairs
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $5,000,000, to remain available until September 30, 2031,
for the administrative costs of carrying out this section.
(d) Cost-sharing and Matching Requirements.--None of the funds
provided by this section shall be subject to cost-sharing or matching
requirements.
(e) Small and Needy Program.--Amounts made available under this
section shall be excluded from the calculation of funds received by
those Tribal governments that participate in the ``Small and Needy''
program.
(f) Distribution; Use of Funds.--Amounts made available under this
section that are distributed to Indian Tribes and Tribal organizations
for services pursuant to a self-determination contract (as defined in
subsection (j) of section 4 of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 5304(j))) or a self-governance
compact entered into pursuant to subsection (a) of section 404 of the
Indian Self-Determination and Education Assistance Act (25 U.S.C.
5364(a))--
(1) shall be distributed on a 1-time basis;
(2) shall not be part of the amount required by subsections
(a) through (b) of section 106 of the Indian Self-Determination
and Education Assistance Act (25 U.S.C. 5325(a)-(b)); and
(3) shall only be used for the purposes identified under the
applicable subsection.
SEC. 80002. NATIVE HAWAIIAN CLIMATE RESILIENCE.
(a) Native Hawaiian Climate Resilience and Adaptation.--In addition
to amounts otherwise available, there is appropriated to the Senior
Program Director of the Office of Native Hawaiian Relations for fiscal
year 2022, out of any money in the Treasury not otherwise appropriated,
$23,500,000, to remain available until September 30, 2031, to carry out,
through financial assistance, technical assistance, direct expenditure,
grants, contracts, or cooperative agreements, climate resilience and
adaptation activities that serve the Native Hawaiian Community.
[[Page 136 STAT. 2089]]
(b) Administration.--In addition to amounts otherwise available,
there is appropriated to the Senior Program Director of the Office of
Native Hawaiian Relations for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $1,500,000, to remain available
until September 30, 2031, for the administrative costs of carrying out
this section.
(c) Cost-sharing and Matching Requirements.--None of the funds
provided by this section shall be subject to cost-sharing or matching
requirements.
SEC. 80003. TRIBAL ELECTRIFICATION PROGRAM.
(a) Tribal Electrification Program.--In addition to amounts
otherwise available, there is appropriated to the Director of the Bureau
of Indian Affairs for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, $145,500,000, to remain available until
September 30, 2031, for--
(1) the provision of electricity to unelectrified Tribal
homes through zero-emissions energy systems;
(2) transitioning electrified Tribal homes to zero-emissions
energy systems; and
(3) associated home repairs and retrofitting necessary to
install the zero-emissions energy systems authorized under
paragraphs (1) and (2).
(b) Administration.--In addition to amounts otherwise available,
there is appropriated to the Director of the Bureau of Indian Affairs
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $4,500,000, to remain available until September 30, 2031,
for the administrative costs of carrying out this section.
(c) Cost-sharing and Matching Requirements.--None of the funds
provided by this section shall be subject to cost-sharing or matching
requirements.
(d) Small and Needy Program.--Amounts made available under this
section shall be excluded from the calculation of funds received by
those Tribal governments that participate in the ``Small and Needy''
program.
(e) Distribution; Use of Funds.--Amounts made available under this
section that are distributed to Indian Tribes and Tribal organizations
for services pursuant to a self-determination contract (as defined in
subsection (j) of section 4 of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 5304(j))) or a self-governance
compact entered into pursuant to subsection (a) of section 404 of the
Indian Self-Determination and Education Assistance Act (25 U.S.C.
5364(a))--
(1) shall be distributed on a 1-time basis;
(2) shall not be part of the amount required by subsections
(a) through (b) of section 106 of the Indian Self-Determination
and Education Assistance Act (25 U.S.C. 5325(a)-(b)); and
(3) shall only be used for the purposes identified under the
applicable subsection.
SEC. 80004. EMERGENCY DROUGHT RELIEF FOR TRIBES.
(a) Emergency Drought Relief for Tribes.--In addition to amounts
otherwise available, there is appropriated to the Commissioner of the
Bureau of Reclamation for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $12,500,000, to remain available
until September 30, 2026, for near-term drought relief actions to
mitigate drought impacts for Indian Tribes that
[[Page 136 STAT. 2090]]
are impacted by the operation of a Bureau of Reclamation water project,
including through direct financial assistance to address drinking water
shortages and to mitigate the loss of Tribal trust resources.
(b) Cost-sharing and Matching Requirements.--None of the funds
provided by this section shall be subject to cost-sharing or matching
requirements.
Approved August 16, 2022.
LEGISLATIVE HISTORY--H.R. 5376:
---------------------------------------------------------------------------
HOUSE REPORTS: No. 117-130 (Comm. on the Budget).
CONGRESSIONAL RECORD:
Vol. 167 (2021):
Nov. 18, 19, considered and passed
House.
Vol. 168 (2022):
Aug. 6, considered and passed
Senate, amended.
Aug. 12, House concurred in Senate
amendment.
DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2022):
Aug. 16, Presidential remarks.
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