II 

117TH CONGRESS 

1ST SESSION S. 685 

To amend the Internal Revenue Code of 1986 to establish a carbon fee 

to reduce greenhouse gas emissions, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 10, 2021 

Mr. DURBIN introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to establish 

a carbon fee to reduce greenhouse gas emissions, and 

for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘America’s Clean Fu5 ture Fund Act’’. 

6 SEC. 2. CLIMATE CHANGE FINANCE CORPORATION. 

7 (a) ESTABLISHMENT.— 

8 (1) IN GENERAL.—There is established in the 

9 executive branch an independent agency, to be 

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1 tion’’ (referred to in this section as the ‘‘C2FC’’), 

2 which shall finance clean energy and climate change 

3 resiliency activities in accordance with this section. 

4 (2) MISSION.— 

5 (A) IN GENERAL.—The mission of the 

6 C2FC is to combat and reduce the effects of cli7 mate change by building resilience among com8 munities facing harmful impacts of climate 

9 change and supporting a dramatic reduction in 

10 greenhouse gas emissions— 

11 (i) through the deployment of clean 

12 and renewable technology, resilient infra13 structure, research and development, the 

14 commercialization of new technology, clean 

15 energy manufacturing, and industrial 

16 decarbonization; and 

17 (ii) to meet the goals of— 

18 (I) by 2030, a net reduction of 

19 greenhouse gas emissions by 45 per20 cent, based on 2018 levels; and 

21 (II) by 2050, a net reduction of 

22 greenhouse gas emissions by 100 per23 cent, based on 2018 levels. 


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1 (B) ACTIVITIES.—The C2FC shall carry 

2 out the mission described in subparagraph (A) 

3 by— 

4 (i) financing investments in clean en5 ergy and transportation, resiliency, and in6 frastructure; 

7 (ii) using Federal investment to en8 courage the infusion of private capital and 

9 investment into the clean energy and resil10 ient infrastructure sectors, while creating 

11 new workforce opportunities; and 

12 (iii) providing financing in cases 

13 where private capital cannot be leveraged, 

14 while minimizing competition with private 

15 investment. 

16 (3) EXERCISE OF POWERS.—Except as other17 wise provided expressly by law, all Federal laws deal18 ing with public or Federal contracts, property, 

19 works, officers, employees, budgets, or funds, includ20 ing the provisions of chapters 5 and 7 of title 5, 

21 United States Code, shall apply to the exercise of 

22 the powers of the C2FC. 

23 (b) BOARD OF DIRECTORS.— 

24 (1) IN GENERAL.—The management of the 

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1 ferred to in this section as the ‘‘Board’’) consisting 

2 of 7 members, who shall be appointed by the Presi3 dent, by and with the advice and consent of the Sen4 ate. 

5 (2) CHAIRPERSON AND VICE CHAIRPERSON.— 

6 (A) IN GENERAL.—A Chairperson and 

7 Vice Chairperson of the Board shall be ap8 pointed by the President, by and with the ad9 vice and consent of the Senate, from among the 

10 individuals appointed to the Board under para11 graph (1). 

12 (B) TERM.—An individual— 

13 (i) shall serve as Chairperson or Vice 

14 Chairperson of the Board for a 3-year 

15 term; and 

16 (ii) may be renominated for the posi17 tion until the term of that individual on 

18 the Board under paragraph (3)(C) expires. 

19 (3) BOARD MEMBERS.— 

20 (A) CITIZENSHIP REQUIRED.—Each mem21 ber of the Board shall be an individual who is 

22 a citizen of the United States. 

23 (B) REPRESENTATION.—The members of 

24 the Board shall fairly represent agricultural, 

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1 mental, labor, and commercial interests 

2 throughout the United States. 

3 (C) TERM.— 

4 (i) IN GENERAL.—Except as otherwise 

5 provided in this section, each member of 

6 the Board— 

7 (I) shall be appointed for a term 

8 of 6 years; and 

9 (II) may be reappointed for 1 ad10 ditional term. 

11 (ii) INITIAL STAGGERED TERMS.—Of 

12 the members first appointed to the 

13 Board— 

14 (I) 2 shall each be appointed for 

15 a term of 2 years; 

16 (II) 3 shall each be appointed for 

17 a term of 4 years; and 

18 (III) 2 shall each be appointed 

19 for a term of 6 years. 

20 (4) INITIAL MEETING.—Not later than 30 days 

21 after the date on which all members of the Board 

22 are appointed under paragraph (1), the Board shall 

23 hold an initial meeting. 

24 (c) WORKING GROUPS.— 


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1 (1) IN GENERAL.—The Board shall create, 

2 oversee, and incorporate feedback from the following 

3 working groups (each referred to in this section as 

4 a ‘‘working group’’): 

5 (A) An environmental justice working 

6 group. 

7 (B) A worker and community transition 

8 assistance working group. 

9 (C) A research and innovation working 

10 group. 

11 (2) WORKING GROUP MEMBERS.— 

12 (A) IN GENERAL.—Each working group 

13 shall— 

14 (i) be chaired by a Board member; 

15 and 

16 (ii) comprise not less than 10 and not 

17 more than 20 individuals, who shall be ex18 perts, members of directly impacted com19 munities relating to the subject matter of 

20 the working group, and other relevant 

21 stakeholders. 

22 (B) DIVERSITY.—Individuals on a working 

23 group shall, to the maximum extent practicable, 

24 represent— 


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1 (i) a diverse array of interests related 

2 to the subject matter of the working group; 

3 and 

4 (ii) diverse geographical, racial, reli5 gious, gender, educational, age, disability, 

6 and socioeconomic backgrounds. 

7 (3) MEETINGS.—Each working group shall 

8 meet not less than 2 times per year. 

9 (4) COMMUNITY AND STAKEHOLDER ENGAGE10 MENT.— 

11 (A) IN GENERAL.—Each working group 

12 shall create and engage in meaningful commu13 nity and stakeholder involvement opportunities, 

14 including through regular community engage15 ment activities, for purposes of— 

16 (i) maintaining up-to-date situational 

17 awareness about the needs of relevant com18 munities and stakeholders; 

19 (ii) using the feedback obtained 

20 through those opportunities to inform the 

21 advice of the working group to the Board; 

22 and 

23 (iii) providing a mechanism for direct 

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1 ing to the investment plan and the funding 

2 decisions of the C2FC. 

3 (B) PUBLIC AWARENESS.—Each working 

4 group shall inform the public about C2FC in5 vestment by engaging in public awareness cam6 paigns, which shall target relevant communities 

7 through electronic media, newspapers, radio, di8 rect mailings, canvassing, or other outreach 

9 methods suited for the relevant community. 

10 (C) BROAD PARTICIPATION.—In carrying 

11 out subparagraph (A), each working group 

12 shall, to the maximum extent practicable, maxi13 mize participation from a broad group of stake14 holders, including by holding multiple meetings 

15 with significant advance notice and holding 

16 meetings at different times and in multiple lan17 guages. 

18 (5) TASKS.—Each working group shall, as it re19 lates to the subject matter of the working group— 

20 (A) advise and provide general input to the 

21 Board regarding loans and grants provided by 

22 the C2FC; and 

23 (B) consult with and, based on the activi24 ties described in paragraph (4), provide rec25 ommendations to, the Board in the development 


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1 of and updates to the investment plan of the 

2 C2FC. 

3 (d) INVESTMENT PLAN.— 

4 (1) IN GENERAL.—The Board, in consultation 

5 with each working group described in subsection 

6 (c)(1), shall develop an investment plan (referred to 

7 in this subsection as the ‘‘investment plan’’) for the 

8 C2FC in accordance with this subsection. 

9 (2) PURPOSES.—The purposes of the invest10 ment plan are— 

11 (A) to ensure that investments made by 

12 the C2FC— 

13 (i) are equitable and reach the 

14 prioritized communities described in sub15 section (e)(2); 

16 (ii) are effective at progressing to17 wards the goals described in subsection 

18 (a)(2)(A)(ii); 

19 (iii) support the advancement of re20 search in clean technologies and resilience; 

21 and 

22 (iv) are transparent to the public; and 

23 (B) to provide methods and standards by 

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1 scribed in subsection (c)(1) shall choose 

2 projects in which to invest. 

3 (3) DISTRIBUTION OF GRANT FUNDS.—The ini4 tial investment plan shall require that, of the total 

5 amount of grant funds provided under subsection 

6 (e)(3)(A) each year, not less than 40 percent shall 

7 be used to benefit communities described in sub8 section (e)(2)(A). 

9 (4) INVESTMENT PLAN UPDATES.— 

10 (A) IN GENERAL.—The Board, in con11 sultation with each working group described in 

12 subsection (c)(1), shall update the investment 

13 plan not later than December 31, 2023, and 

14 every 4 years thereafter, including by taking 

15 into account— 

16 (i) the current needs of the prioritized 

17 communities described in subsection (e)(2); 

18 (ii) the effectiveness of the previous 

19 investment plan in addressing the needs of 

20 those communities; 

21 (iii) the current state of relevant re22 search and technology; 

23 (iv) the resiliency needs of local com24 munities; 


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1 (v) the goals described in subsection 

2 (a)(2)(A)(ii); and 

3 (vi) the 2 most recent program re4 views conducted under subsection (f). 

5 (B) EFFECTIVENESS.—An investment plan 

6 shall remain in effect until the date on which 

7 the Board approves an updated investment 

8 plan. 

9 (C) PUBLIC INPUT.—In updating the in10 vestment plan, the Board and the working 

11 groups described in subsection (c)(1) shall— 

12 (i) engage stakeholders and the public 

13 in a public comment and feedback process; 

14 and 

15 (ii) ensure that the prioritized commu16 nities described in subsection (e)(2) have 

17 access to participate in that process. 

18 (5) PUBLIC UPDATES.—The Board shall make 

19 publicly available on a quarterly basis information 

20 relating to the expenditure of funds under the in21 vestment plan. 

22 (e) INVESTMENT TOOLS.— 

23 (1) DEFINITIONS.—In this subsection: 

24 (A) COMMUNITY OF COLOR.—The term 

25 ‘‘community of color’’ means a geographically 


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1 distinct area in which the population of any of 

2 the following categories of individuals is higher 

3 than the average population of that category for 

4 the State in which the community is located: 

5 (i) Black. 

6 (ii) African American. 

7 (iii) Asian. 

8 (iv) Pacific Islander. 

9 (v) Other non-White race. 

10 (vi) Hispanic. 

11 (vii) Latino. 

12 (viii) Linguistically isolated. 

13 (B) ELIGIBLE BORROWER.—The term ‘‘eli14 gible borrower’’ means any person, including a 

15 business owner or project developer, that seeks 

16 a loan to carry out approved practices or 

17 projects described in subparagraph (A)(i) of 

18 paragraph (3) from an eligible lender that may 

19 receive a loan guarantee under that paragraph 

20 for that loan, according to criteria determined 

21 by the C2FC. 

22 (C) ELIGIBLE ENTITY.—The term ‘‘eligible 

23 entity’’ means— 

24 (i) a State; 

25 (ii) an Indian Tribe; 


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1 (iii) a unit of local government; and 

2 (iv) a research and development insti3 tution (including a National Laboratory). 

4 (D) ELIGIBLE LENDER.—The term ‘‘eligi5 ble lender’’ means— 

6 (i) a Federal- or State-chartered 

7 bank; 

8 (ii) a Federal- or State-chartered 

9 credit union; 

10 (iii) an agricultural credit corporation; 

11 (iv) a United States Green Bank In12 stitution; 

13 (v) a community development finan14 cial institution (as defined in section 103 

15 of the Community Development Banking 

16 and Financial Institutions Act of 1994 (12 

17 U.S.C. 4702)); 

18 (vi) a minority depository institution 

19 (as defined in section 308(b) of the Finan20 cial Institutions Reform, Recovery, and 

21 Enforcement Act of 1989 (12 U.S.C. 1463 

22 note; Public Law 101–73)); and 

23 (vii) any other lender that the Board 

24 determines has a demonstrated ability to 

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1 tended approved practice for which the 

2 loan will be used. 

3 (E) ENVIRONMENTAL JUSTICE COMMU4 NITY.—The term ‘‘environmental justice com5 munity’’ means a community with significant 

6 representation of communities of color, low-in7 come communities, or Tribal and indigenous 

8 communities that experiences, or is at risk of 

9 experiencing, higher or more adverse human 

10 health or environmental effects. 

11 (F) INDIAN TRIBE.—The term ‘‘Indian 

12 Tribe’’ has the meaning given the term in sec13 tion 4 of the Indian Self-Determination and 

14 Education Assistance Act (25 U.S.C. 5304). 

15 (G) LOW-INCOME COMMUNITY.—The term 

16 ‘‘low-income community’’ means any census 

17 block group in which 30 percent or more of the 

18 population are individuals with an annual 

19 household income equal to, or less than, the 

20 greater of— 

21 (i) an amount equal to 80 percent of 

22 the median income of the area in which the 

23 household is located, as reported by the 

24 Department of Housing and Urban Devel25 opment; and 


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1 (ii) 200 percent of the Federal pov2 erty line. 

3 (H) STATE.—The term ‘‘State’’ means— 

4 (i) a State; 

5 (ii) the District of Columbia; 

6 (iii) the Commonwealth of Puerto 

7 Rico; and 

8 (iv) any other territory or possession 

9 of the United States. 

10 (2) COMMUNITY PRIORITIZATION.—In providing 

11 financial and other assistance under paragraph (3), 

12 the C2FC shall give priority to, as determined by 

13 the C2FC— 

14 (A) environmental justice communities, 

15 communities with populations of color, commu16 nities of color, indigenous communities, and 

17 low-income communities that— 

18 (i) experience a disproportionate bur19 den of the negative human health and en20 vironmental impacts of pollution or other 

21 environmental hazards, such as natural 

22 disasters; or 

23 (ii) may not have access to public in24 formation and opportunities for meaningful 

25 public participation relating to human 


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1 health and environmental planning, regula2 tions, and enforcement; 

3 (B) deindustrialized communities or com4 munities with significant local economic reliance 

5 on carbon-intensive industries; 

6 (C) low-income communities at risk of im7 pacts of natural disasters or sea level rise exac8 erbated by climate change; 

9 (D) public or nonprofit entities that serve 

10 dislocated workers, veterans, or individuals with 

11 a barrier to employment; and 

12 (E) communities that have minimal or no 

13 investment in the approved practices and 

14 projects described in paragraph (3)(A)(i). 

15 (3) GRANTS, LOAN GUARANTEES, AND OTHER

16 INVESTMENT TOOLS.— 

17 (A) IN GENERAL.—The C2FC— 

18 (i) shall provide grants to eligible enti19 ties and loan guarantees to eligible lenders 

20 issuing loans to eligible borrowers for ap21 proved practices and projects relating to 

22 climate change mitigation and resilience 

23 measures, including— 

24 (I) energy efficiency upgrades to 

25 infrastructure; 


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1 (II) electric, hydrogen, and clean 

2 transportation programs and deploy3 ment, including programs— 

4 (aa) to purchase personal 

5 vehicles, commercial vehicles, and 

6 public transportation fleets and 

7 school bus fleets; 

8 (bb) to deploy electric vehi9 cle charging and hydrogen infra10 structure; and 

11 (cc) to develop and deploy 

12 low carbon sustainable aviation 

13 fuels; 

14 (III) clean energy and vehicle 

15 manufacturing research, demonstra16 tions, and deployment; 

17 (IV) battery storage research, 

18 demonstrations, and deployment; 

19 (V) development or purchase of 

20 equipment for practices described in 

21 section 6; 

22 (VI) development and deployment 

23 of clean energy and clean tech24 nologies, with a focus on— 


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1 (aa) carbon capture, utiliza2 tion, and sequestration, bioenergy 

3 with carbon capture and seques4 tration, direct air capture, and 

5 infrastructure associated with 

6 those processes, including con7 struction of carrier pipelines for 

8 the transportation of anthropo9 genic carbon dioxide; 

10 (bb) energy storage and grid 

11 modernization; 

12 (cc) geothermal energy; 

13 (dd) commercial and resi14 dential solar; 

15 (ee) wind energy; and 

16 (ff) any other clean tech17 nology use or development, as de18 termined by the Board; 

19 (VII) measures that anticipate 

20 and prepare for climate change im21 pacts, and reduce risks and enhance 

22 resilience to sea level rise, extreme 

23 weather events, heat island impacts, 

24 and other climate change impacts, in25 cluding by— 


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1 (aa) building resilient en2 ergy, water, and transportation 

3 infrastructure; 

4 (bb) providing weatheriza5 tion assistance for low-income 

6 households; and 

7 (cc) increasing the resilience 

8 of the agriculture sector; and 

9 (VIII) natural infrastructure re10 search, demonstrations, and deploy11 ment; and 

12 (ii) may implement other investment 

13 tools and products approved by the Board, 

14 pursuant to subparagraph (C), to achieve 

15 the mission of the C2FC described in sub16 section (a)(2). 

17 (B) LOAN GUARANTEES.— 

18 (i) IN GENERAL.—In providing loan 

19 guarantees under subparagraph (A), the 

20 C2FC shall cooperate with eligible lenders 

21 through agreements to participate on a de22 ferred (guaranteed) basis. 

23 (ii) LEVEL OF PARTICIPATION IN

24 GUARANTEED LOANS.—In providing a loan 

25 guarantee under subparagraph (A), the 


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1 C2FC shall guarantee 75 percent of the 

2 balance of the financing outstanding at the 

3 time of disbursement of the loan. 

4 (iii) INTEREST RATES.—Notwith5 standing the provisions of the constitution 

6 of any State or the laws of any State lim7 iting the rate or amount of interest that 

8 may be charged, taken, received, or re9 served, the maximum legal rate of interest 

10 on any financing made on a deferred basis 

11 under this subsection shall not exceed a 

12 rate prescribed by the C2FC. 

13 (iv) GUARANTEE FEES.— 

14 (I) IN GENERAL.—With respect 

15 to each loan guaranteed under this 

16 subsection (other than a loan that is 

17 repayable in 1 year or less), the C2FC 

18 shall collect a guarantee fee, which 

19 shall be payable by the eligible lender, 

20 and may be charged to the eligible 

21 borrower in accordance with subclause 

22 (II). 

23 (II) BORROWER CHARGES.—A 

24 guarantee fee described in subclause 


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1 (I) charged to an eligible borrower 

2 shall not— 

3 (aa) exceed 2 percent of the 

4 deferred participation share of a 

5 total loan amount that is equal to 

6 or less than $150,000; 

7 (bb) exceed 3 percent of the 

8 deferred participation share of a 

9 total loan amount that is greater 

10 than $150,000 but less than 

11 $700,000; or 

12 (cc) exceed 3.5 percent of 

13 the deferred participation share 

14 of a total loan amount that is 

15 equal to or greater than 

16 $700,000. 

17 (C) OTHER INVESTMENT TOOLS AND

18 PRODUCTS.— 

19 (i) IN GENERAL.—The Board may, 

20 based on market needs, develop and imple21 ment any other investment tool or product 

22 necessary to achieve the mission of the 

23 C2FC described in subsection (a)(2) and 

24 the deployment of projects described in 

25 subparagraph (A)(i), including offering— 


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1 (I) warehousing and aggregation 

2 credit facilities; 

3 (II) zero interest loans; 

4 (III) credit enhancements; and 

5 (IV) construction finance. 

6 (ii) STATE AND LOCAL GREEN

7 BANKS.—The Board shall provide— 

8 (I) funds to United States Green 

9 Bank Institutions as necessary to fi10 nance projects that are best served by 

11 those entities; and 

12 (II) technical assistance as nec13 essary to States and localities seeking 

14 to establish green banks. 

15 (4) WAGE RATE REQUIREMENTS.— 

16 (A) IN GENERAL.—All laborers and me17 chanics employed by eligible entities and eligible 

18 borrowers on projects funded directly by or as19 sisted in whole or in part by the activities of the 

20 C2FC under this section shall be paid at wages 

21 at rates not less than those prevailing on 

22 projects of a similar character in the locality as 

23 determined by the Secretary of Labor in ac24 cordance with subchapter IV of chapter 31 of 


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1 title 40, United States Code (commonly known 

2 as the ‘‘Davis-Bacon Act’’). 

3 (B) AUTHORITY.—With respect to the 

4 labor standards specified in subparagraph (A), 

5 the Secretary of Labor shall have the authority 

6 and functions set forth in Reorganization Plan 

7 Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. 

8 App.) and section 3145 of title 40, United 

9 States Code. 

10 (5) BUY AMERICA REQUIREMENTS.— 

11 (A) IN GENERAL.—All iron, steel, and 

12 manufactured goods used for projects under 

13 this section shall be produced in the United 

14 States. 

15 (B) WAIVER.—The Board may waive the 

16 requirement in subparagraph (A) if the Board 

17 finds that— 

18 (i) enforcing the requirement would be 

19 inconsistent with the public interest; 

20 (ii) the iron, steel, and manufactured 

21 goods produced in the United States are 

22 not produced in a sufficient and reasonably 

23 available amount or are not of a satisfac24 tory quality; or 


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1 (iii) enforcing the requirement will in2 crease the overall cost of the project by 

3 more than 25 percent. 

4 (f) PROGRAM REVIEW AND REPORT.—Not later than 

5 2 years after the date of enactment of this Act, and every 

6 2 years thereafter, the Board shall— 

7 (1) conduct a review of the activities of the 

8 C2FC and identify projects and funding opportuni9 ties that were a part of the current investment plan; 

10 and 

11 (2) submit to Congress and make publicly avail12 able a report that— 

13 (A) describes the projects and funding op14 portunities that have been most successful in 

15 progressing towards the mission described in 

16 subsection (a)(2) during the time period covered 

17 by the report; 

18 (B) includes recommendations on the clean 

19 energy and resiliency projects that should be 

20 prioritized in forthcoming years to achieve that 

21 mission; 

22 (C) quantifies the total amount and per23 centage of funding given to prioritized commu24 nities described in subsection (e)(2); and 


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1 (D) identifies barriers for disadvantaged 

2 groups to receive C2FC funding and provides 

3 recommendations to address those barriers. 

4 (g) INITIAL CAPITALIZATION.—There is appropriated 

5 to carry out this section, out of any funds in the Treasury 

6 not otherwise appropriated, $7,500,000,000 for each of 

7 fiscal years 2022 and 2023, to remain available until ex8 pended. 

9 SEC. 3. CARBON FEE. 

10 (a) IN GENERAL.—Chapter 38 of subtitle D of the 

11 Internal Revenue Code of 1986 is amended by adding at 

12 the end the following new subchapter: 

13 ‘‘Subchapter E—Carbon Fee 

‘‘Sec. 4691. Definitions. 

‘‘Sec. 4692. Carbon fee. 

‘‘Sec. 4693. Fee on noncovered fuel emissions. 

‘‘Sec. 4694. Refunds for carbon capture, sequestration, and utilization. 

‘‘Sec. 4695. Border adjustments. 

14 ‘‘SEC. 4691. DEFINITIONS. 

15 ‘‘For purposes of this subchapter— 

16 ‘‘(1) ADMINISTRATOR.—The term ‘Adminis17 trator’ means the Administrator of the Environ18 mental Protection Agency. 

19 ‘‘(2) CARBON DIOXIDE EQUIVALENT OR CO2- 

20 E.—The term ‘carbon dioxide equivalent’ or ‘CO2-e’ 

21 means the number of metric tons of carbon dioxide 

22 emissions with the same global warming potential 


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1 over a 100-year period as one metric ton of another 

2 greenhouse gas. 

3 ‘‘(3) CARBON-INTENSIVE PRODUCT.—The term 

4 ‘carbon-intensive product’ means— 

5 ‘‘(A) iron, steel, steel mill products (includ6 ing pipe and tube), aluminum, cement, glass 

7 (including flat, container, and specialty glass 

8 and fiberglass), pulp, paper, chemicals, or in9 dustrial ceramics, and 

10 ‘‘(B) any manufactured product which the 

11 Secretary, in consultation with the Adminis12 trator, the Secretary of Commerce, and the Sec13 retary of Energy, determines is energy-intensive 

14 and trade-exposed (with the exception of any 

15 covered fuel). 

16 ‘‘(4) COVERED ENTITY.—The term ‘covered en17 tity’ means— 

18 ‘‘(A) in the case of crude oil— 

19 ‘‘(i) any operator of a United States 

20 refinery (as described in subsection (d)(1) 

21 of section 4611), and 

22 ‘‘(ii) any person entering such product 

23 into the United States for consumption, 

24 use, or warehousing (as described in sub25 section (d)(2) of such section), 


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1 ‘‘(B) in the case of coal— 

2 ‘‘(i) any producer subject to the tax 

3 under section 4121, and 

4 ‘‘(ii) any importer of coal into the 

5 United States, 

6 ‘‘(C) in the case of natural gas— 

7 ‘‘(i) any entity which produces natural 

8 gas (as defined in section 613A(e)(2)) 

9 from a well located in the United States, 

10 and 

11 ‘‘(ii) any importer of natural gas into 

12 the United States, 

13 ‘‘(D) in the case of any noncovered fuel 

14 emissions, the entity which is the source of such 

15 emissions, provided that the total amount of 

16 carbon dioxide or methane emitted by such enti17 ty for the preceding year (as determined using 

18 the methodology required under section 

19 4692(e)(4)) was not less than 25,000 metric 

20 tons, and 

21 ‘‘(E) any entity or class of entities which, 

22 as determined by the Secretary, is transporting, 

23 selling, or otherwise using a covered fuel in a 

24 manner which emits a greenhouse gas into the 

25 atmosphere and which has not been covered by 


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1 the carbon fee, the fee on noncovered fuel emis2 sions, or the carbon border fee adjustment. 

3 ‘‘(5) COVERED FUEL.—The term ‘covered fuel’ 

4 means crude oil, natural gas, coal, or any other 

5 product derived from crude oil, natural gas, or coal 

6 which shall be used so as to emit greenhouse gases 

7 to the atmosphere. 

8 ‘‘(6) GREENHOUSE GAS.—The term ‘greenhouse 

9 gas’— 

10 ‘‘(A) has the meaning given such term in 

11 section 901 of the Energy Independence and 

12 Security Act of 2007 (42 U.S.C. 17321), and 

13 ‘‘(B) includes any other gases identified by 

14 rule of the Administrator. 

15 ‘‘(7) GREENHOUSE GAS CONTENT.—The term 

16 ‘greenhouse gas content’ means the amount of 

17 greenhouse gases, expressed in metric tons of CO2- 

18 e, which would be emitted to the atmosphere by the 

19 use of a covered fuel. 

20 ‘‘(8) NONCOVERED FUEL EMISSION.—The term 

21 ‘noncovered fuel emission’ means any carbon dioxide 

22 or methane emitted as a result of the production, 

23 processing, transport, or use of any product or mate24 rial within the energy or industrial sectors— 


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1 ‘‘(A) including any fugitive or process 

2 emissions associated with the production, proc3 essing, or transport of a covered fuel, and 

4 ‘‘(B) excluding any emissions from the 

5 combustion or use of a covered fuel. 

6 ‘‘(9) QUALIFIED CARBON OXIDE.—The term 

7 ‘qualified carbon oxide’ has the meaning given the 

8 term in section 45Q(c). 

9 ‘‘(10) UNITED STATES.—The term ‘United 

10 States’ shall be treated as including each possession 

11 of the United States (including the Commonwealth 

12 of Puerto Rico and the Commonwealth of the North13 ern Mariana Islands). 

14 ‘‘SEC. 4692. CARBON FEE. 

15 ‘‘(a) DEFINITIONS.—In this section: 

16 ‘‘(1) APPLICABLE PERIOD.—The term ‘applica17 ble period’ means, with respect to any determination 

18 made by the Secretary under subsection (e)(3) for 

19 any calendar year, the period— 

20 ‘‘(A) beginning on January 1, 2023, and 

21 ‘‘(B) ending on December 31 of the pre22 ceding calendar year. 

23 ‘‘(2) CUMULATIVE EMISSIONS.—The term ‘cu24 mulative emissions’ means an amount equal to the 

25 sum of any greenhouse gas emissions resulting from 


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1 the use of covered fuels and any noncovered fuel 

2 emissions for all years during the applicable period. 

3 ‘‘(3) CUMULATIVE EMISSIONS TARGET.—The 

4 term ‘cumulative emissions target’ means an amount 

5 equal to the sum of the emissions targets for all 

6 years during the applicable period. 

7 ‘‘(4) EMISSIONS TARGET.—The term ‘emissions 

8 target’ means the target for greenhouse gas emis9 sions during a calendar year as determined under 

10 subsection (e)(1). 

11 ‘‘(b) CARBON FEE.—During any calendar year that 

12 begins after December 31, 2022, there is imposed a car13 bon fee on any covered entity’s use, sale, or transfer of 

14 any covered fuel. 

15 ‘‘(c) AMOUNT OF THE CARBON FEE.—The carbon fee 

16 imposed by this section is an amount equal to— 

17 ‘‘(1) the greenhouse gas content of the covered 

18 fuel, multiplied by 

19 ‘‘(2) the carbon fee rate, as determined under 

20 subsection (d). 

21 ‘‘(d) CARBON FEE RATE.—The carbon fee rate shall 

22 be determined in accordance with the following: 

23 ‘‘(1) IN GENERAL.—The carbon fee rate, with 

24 respect to any use, sale, or transfer during a cal25 endar year, shall be— 


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1 ‘‘(A) in the case of calendar year 2023, 

2 $25, and 

3 ‘‘(B) except as provided in paragraphs (2) 

4 and (3), in the case of any calendar year after 

5 2023, the amount equal to the sum of— 

6 ‘‘(i) the amount under subparagraph 

7 (A), plus 

8 ‘‘(ii)(I) in the case of calendar year 

9 2024, $10, and 

10 ‘‘(II) in the case of any calendar year 

11 after 2024, the amount in effect under this 

12 clause for the preceding calendar year, plus 

13 $10. 

14 ‘‘(2) INFLATION ADJUSTMENT.— 

15 ‘‘(A) IN GENERAL.—In the case of any cal16 endar year after 2023, the amount determined 

17 under paragraph (1)(B) shall be increased by 

18 an amount equal to— 

19 ‘‘(i) that dollar amount, multiplied by 

20 ‘‘(ii) the cost-of-living adjustment de21 termined under section 1(f)(3) for that cal22 endar year, determined by substituting 

23 ‘2022’ for ‘2016’ in subparagraph (A)(ii) 

24 thereof. 


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1 ‘‘(B) ROUNDING.—If any increase deter2 mined under subparagraph (A) is not a multiple 

3 of $1, such increase shall be rounded up to the 

4 next whole dollar amount. 

5 ‘‘(3) ADJUSTMENT OF CARBON FEE RATE.— 

6 ‘‘(A) INCREASE IN RATE FOLLOWING

7 MISSED CUMULATIVE EMISSIONS TARGET.—In 

8 the case of any calendar year following a deter9 mination by the Secretary pursuant to sub10 section (e)(3) that the cumulative emissions for 

11 the preceding calendar year exceeded the cumu12 lative emissions target for such year, paragraph 

13 (1)(B)(ii)(II) shall be applied— 

14 ‘‘(i) in the case of calendar years 

15 2026 through 2030, by substituting ‘$15’ 

16 for ‘$10’, 

17 ‘‘(ii) in the case of calendar years 

18 2031 through 2040, by substituting ‘$20’ 

19 for ‘$10’, and 

20 ‘‘(iii) in the case of any calendar year 

21 beginning after 2040, by substituting ‘$25’ 

22 for ‘$10’. 

23 ‘‘(B) CESSATION OF RATE INCREASE FOL24 LOWING ACHIEVEMENT OF CUMULATIVE EMIS25 SIONS TARGET.—In the case of any year folVerDate Sep 11 2014 22:21 Apr 04, 2021 Jkt 019200 PO 00000 Frm 00032 Fmt 6652 Sfmt 6201 E:\BILLS\S685.IS S685

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1 lowing a determination by the Secretary pursu2 ant to subsection (e)(3) that— 

3 ‘‘(i) the average annual emissions of 

4 greenhouse gases from covered entities 

5 over the preceding 3-year period are not 

6 more than 10 percent of the greenhouse 

7 gas emissions during the year 2018, and 

8 ‘‘(ii) the cumulative emissions did not 

9 exceed the cumulative emissions target, 

10 paragraph (1)(B)(ii)(II) shall be applied by 

11 substituting ‘$0’ for ‘$10’. 

12 ‘‘(C) METHODOLOGY.—With respect to 

13 any year, the annual greenhouse gas emissions 

14 and cumulative emissions described in subpara15 graph (A) or (B) shall be determined using the 

16 methodology required under subsection (e)(4). 

17 ‘‘(e) EMISSIONS TARGETS.— 

18 ‘‘(1) IN GENERAL.— 

19 ‘‘(A) REFERENCE YEAR.—For purposes of 

20 subsection (d), the emissions target for any 

21 year shall be the amount of greenhouse gas 

22 emissions that is equal to— 

23 ‘‘(i) for calendar years 2023 and 

24 2024, the applicable percentage of the total 

25 amount of greenhouse gas emissions from 


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1 the use of any covered fuel during calendar 

2 year 2018, and 

3 ‘‘(ii) for calendar year 2025 and each 

4 calendar year thereafter, the applicable 

5 percentage of the total amount of green6 house gas emissions from the use of any 

7 covered fuel and noncovered fuel emissions 

8 during calendar year 2018. 

9 ‘‘(B) METHODOLOGY.—For purposes of 

10 subparagraph (A), with respect to determining 

11 the total amount of greenhouse gas emissions 

12 from the use of any covered fuel and non13 covered fuel emissions during calendar year 

14 2018, the Administrator shall use such methods 

15 as are determined appropriate, provided that 

16 such methods are, to the greatest extent prac17 ticable, comparable to the methods established 

18 under paragraph (4). 

19 ‘‘(2) APPLICABLE PERCENTAGE.— 

20 ‘‘(A) 2023 THROUGH 2035.—In the case of 

21 calendar years 2023 through 2035, the applica22 ble percentage shall be determined as follows: 

‘‘Year Applicable percentage 

2023 ............................................................................................. 81 percent 

2024 ............................................................................................. 75 percent 

2025 ............................................................................................. 70 percent 

2026 ............................................................................................. 67 percent 

2027 ............................................................................................. 63 percent 

2028 ............................................................................................. 60 percent 

2029 ............................................................................................. 57 percent 


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‘‘Year Applicable percentage 

2030 ............................................................................................. 55 percent 

2031 ............................................................................................. 52 percent 

2032 ............................................................................................. 49 percent 

2033 ............................................................................................. 46 percent 

2034 ............................................................................................. 43 percent 

2035 ............................................................................................. 40 percent 

1 ‘‘(B) 2036 THROUGH 2050.—In the case of 

2 calendar years 2036 through 2050, the applica3 ble percentage shall be equal to— 

4 ‘‘(i) the applicable percentage for the 

5 preceding year, minus 

6 ‘‘(ii) 2 percentage points. 

7 ‘‘(C) AFTER 2050.—In the case of any cal8 endar year beginning after 2050, the applicable 

9 percentage shall be equal to 10 percent. 

10 ‘‘(3) EMISSIONS REPORTING AND DETERMINA11 TIONS.— 

12 ‘‘(A) REPORTING.—Not later than Sep13 tember 30, 2024, and annually thereafter, the 

14 Administrator, in consultation with the Sec15 retary, shall make available to the public a re16 port on— 

17 ‘‘(i) the cumulative emissions with re18 spect to the preceding calendar year, and 

19 ‘‘(ii) any other relevant information, 

20 as determined appropriate by the Adminis21 trator. 


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1 ‘‘(B) DETERMINATIONS.—Not later than 

2 September 30, 2025, and annually thereafter, 

3 the Administrator, in consultation with the Sec4 retary and as part of the report described in 

5 subparagraph (A), shall determine whether cu6 mulative emissions with respect to the pre7 ceding calendar year exceeded the cumulative 

8 emissions target with respect to such year. 

9 ‘‘(4) EMISSIONS ACCOUNTING METHOD10 OLOGY.— 

11 ‘‘(A) IN GENERAL.—Not later than Janu12 ary 1, 2023, the Administrator shall prescribe 

13 rules for greenhouse gas accounting for covered 

14 entities for purposes of this subchapter, which 

15 shall— 

16 ‘‘(i) to the greatest extent practicable, 

17 employ existing data collection methodolo18 gies and greenhouse gas accounting prac19 tices, 

20 ‘‘(ii) ensure that the method of ac21 counting— 

22 ‘‘(I) applies to— 

23 ‘‘(aa) all greenhouse gas 

24 emissions from covered fuels and 


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1 all noncovered fuel emissions, 

2 and 

3 ‘‘(bb) all covered entities, 

4 ‘‘(II) excludes— 

5 ‘‘(aa) any greenhouse gas 

6 emissions which are not described 

7 item (aa) of subclause (I), and 

8 ‘‘(bb) any entities which are 

9 not described in item (bb) of 

10 such subclause, and 

11 ‘‘(III) appropriately accounts 

12 for— 

13 ‘‘(aa) qualified carbon oxide 

14 which is captured and disposed 

15 or used in a manner described in 

16 section 4694, and 

17 ‘‘(bb) nonemitting uses of 

18 covered fuels, as described in 

19 subsection (f), 

20 ‘‘(iii) subject to such penalties as are 

21 determined appropriate by the Adminis22 trator, require any covered entity to report, 

23 not later than April 1 of each calendar 

24 year— 


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1 ‘‘(I) the total greenhouse gas 

2 content of any covered fuels used, 

3 sold, or transferred by such covered 

4 entity during the preceding calendar 

5 year, and 

6 ‘‘(II) the total noncovered fuel 

7 emissions of the covered entity during 

8 the preceding calendar year, and 

9 ‘‘(iv) require any information reported 

10 pursuant to clause (iii) to be verified by a 

11 third-party entity that, subject to such 

12 process as is determined appropriate by 

13 the Administrator, has been certified by 

14 the Administrator with respect to the 

15 qualifications, independence, and reliability 

16 of such entity. 

17 ‘‘(B) GREENHOUSE GAS REPORTING PRO18 GRAM.—For purposes of establishing the rules 

19 described in subparagraph (A), the Adminis20 trator may elect to modify the activities of the 

21 Greenhouse Gas Reporting Program to satisfy 

22 the requirements described in clauses (i) 

23 through (iv) of such subparagraph. 

24 ‘‘(5) REVISIONS.—With respect to any deter25 mination made by the Administrator as to the 


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1 amount of greenhouse gas emissions for any cal2 endar year (including calendar year 2018), any sub3 sequent revision by the Administrator with respect 

4 to such amount shall apply for purposes of the fee 

5 imposed under subsection (b) for any calendar years 

6 beginning after such revision. 

7 ‘‘(f) EXEMPTION AND REFUND.—The Secretary shall 

8 prescribe such rules as are necessary to ensure the carbon 

9 fee imposed by this section is not imposed with respect 

10 to any nonemitting use, or any sale or transfer for a non11 emitting use, including rules providing for the refund of 

12 any carbon fee paid under this section with respect to any 

13 such use, sale, or transfer. 

14 ‘‘(g) ADMINISTRATIVE AUTHORITY.—The Secretary, 

15 in consultation with the Administrator, shall prescribe 

16 such regulations, and other guidance, to assess and collect 

17 the carbon fee imposed by this section, including— 

18 ‘‘(1) the identification of covered entities that 

19 are liable for payment of a fee under this section or 

20 section 4693, 

21 ‘‘(2) as may be necessary or convenient, rules 

22 for distinguishing between different types of covered 

23 entities, 

24 ‘‘(3) as may be necessary or convenient, rules 

25 for distinguishing between the greenhouse gas emisVerDate Sep 11 2014 22:21 Apr 04, 2021 Jkt 019200 PO 00000 Frm 00039 Fmt 6652 Sfmt 6201 E:\BILLS\S685.IS S685

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1 sions of a covered entity and the greenhouse gas 

2 emissions that are attributed to the covered entity 

3 but not directly emitted by the covered entity, 

4 ‘‘(4) requirements for the quarterly payment of 

5 such fees, and 

6 ‘‘(5) rules to ensure that the carbon fee under 

7 this section, the fee on noncovered fuel emissions 

8 under section 4693, or the carbon border fee adjust9 ment is not imposed on an emission from covered 

10 fuel or noncovered fuel emission more than once. 

11 ‘‘SEC. 4693. FEE ON NONCOVERED FUEL EMISSIONS. 

12 ‘‘(a) IN GENERAL.—During any calendar year that 

13 begins after December 31, 2024, there is imposed a fee 

14 on a covered entity for any noncovered fuel emissions 

15 which occur during the calendar year. 

16 ‘‘(b) AMOUNT.—The fee to be paid under subsection 

17 (a) by the covered entity which is the source of the emis18 sions described in that subsection shall be an amount 

19 equal to— 

20 ‘‘(1) the total amount, in metric tons of CO2- 

21 e, of emitted greenhouse gases, multiplied by 

22 ‘‘(2) an amount equal to the carbon fee rate in 

23 effect under section 4692(d) for the calendar year of 

24 such emission. 


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1 ‘‘(c) ADMINISTRATIVE AUTHORITY.—The Secretary, 

2 in consultation with the Administrator, shall prescribe 

3 such regulations, and other guidance, to assess and collect 

4 the carbon fee imposed by this section, including regula5 tions describing the requirements for the quarterly pay6 ment of such fees. 

7 ‘‘SEC. 4694. REFUNDS FOR CARBON CAPTURE, SEQUESTRA8 TION, AND UTILIZATION. 

9 ‘‘(a) IN GENERAL.— 

10 ‘‘(1) CAPTURE, SEQUESTRATION, AND USE.— 

11 The Secretary, in consultation with the Adminis12 trator and the Secretary of Energy, shall prescribe 

13 regulations for providing payments to any person 

14 which captures qualified carbon oxide which is— 

15 ‘‘(A) disposed of by such person in secure 

16 geological storage, as described in section 

17 45Q(f)(2), or 

18 ‘‘(B) used in a manner which has been ap19 proved by the Secretary pursuant to subsection 

20 (c). 

21 ‘‘(2) ELECTION.—If the person described in 

22 paragraph (1) makes an election under this para23 graph in such time and manner as the Secretary 

24 may prescribe by regulations, the credit under this 

25 section— 


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1 ‘‘(A) shall be allowable to the person that 

2 owns the facility described in subsection (b)(1), 

3 and 

4 ‘‘(B) shall not be allowable to the person 

5 described in paragraph (1). 

6 ‘‘(b) PAYMENTS FOR CARBON CAPTURE.— 

7 ‘‘(1) IN GENERAL.—In the case of any facility 

8 for which carbon capture equipment has been placed 

9 in service, the Secretary shall make payments in the 

10 same manner as if such payment was a refund of an 

11 overpayment of the fee imposed by section 4692 or 

12 4693. 

13 ‘‘(2) AMOUNT OF PAYMENT.—The payment de14 termined under this subsection shall be an amount 

15 equal to— 

16 ‘‘(A) the metric tons of qualified carbon 

17 oxide captured and disposed of, used, or utilized 

18 in a manner consistent with subsection (a), 

19 multiplied by 

20 ‘‘(B)(i) the carbon fee rate during the year 

21 in which the carbon fee was imposed by section 

22 4692 on the covered fuel to which such carbon 

23 oxide relates, or 

24 ‘‘(ii) in the case of a direct air capture fa25 cility (as defined in section 45Q(e)(1)), the carVerDate Sep 11 2014 22:21 Apr 04, 2021 Jkt 019200 PO 00000 Frm 00042 Fmt 6652 Sfmt 6201 E:\BILLS\S685.IS S685

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1 bon fee rate during the year in which the quali2 fied carbon oxide was captured and disposed of, 

3 used, or utilized. 

4 ‘‘(c) APPROVED USES OF QUALIFIED CARBON

5 OXIDE.—The Secretary, in consultation with Adminis6 trator and the Secretary of Energy, shall, through regula7 tion or other public guidance, determine which uses of 

8 qualified carbon oxide are eligible for payments under this 

9 section, which may include— 

10 ‘‘(1) utilization in a manner described in clause 

11 (i) or (ii) of section 45Q(f)(5)(A), or 

12 ‘‘(2) any other use which ensures minimal leak13 age or escape of such carbon oxide. 

14 ‘‘(d) EXCEPTION.—In the case of any facility which 

15 is owned by an entity that is determined to be— 

16 ‘‘(1) in violation of any applicable air or water 

17 quality regulations, or 

18 ‘‘(2) with respect to any environmental justice 

19 community (as defined in section 2(d)(1)(D) of the 

20 America’s Clean Future Fund Act), creating health 

21 or environmental harm to such community, 

22 such facility shall not be eligible for any payment under 

23 this section during the period of such violation. 


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1 ‘‘SEC. 4695. BORDER ADJUSTMENTS. 

2 ‘‘(a) IN GENERAL.—The fees imposed by, and re3 funds allowed under, this section shall be referred to as 

4 ‘the carbon border fee adjustment’. 

5 ‘‘(b) EXPORTS.— 

6 ‘‘(1) CARBON-INTENSIVE PRODUCTS.—In the 

7 case of any carbon-intensive product which is ex8 ported from the United States, the Secretary shall 

9 pay to the person exporting such product a refund 

10 equal to the amount of the cost of such product at11 tributable to any fees imposed under this subchapter 

12 related to the manufacturing of such product (as de13 termined under regulations established by the Sec14 retary). 

15 ‘‘(2) COVERED FUELS.—In the case of any cov16 ered fuel which is exported from the United States, 

17 the Secretary shall pay to the person exporting such 

18 fuel a refund equal to the amount of the cost of such 

19 fuel attributable to any fees imposed under this sub20 chapter related to the use, sale, or transfer of such 

21 fuel. 

22 ‘‘(c) IMPORTS.— 

23 ‘‘(1) CARBON-INTENSIVE PRODUCTS.— 

24 ‘‘(A) IMPOSITION OF EQUIVALENCY FEE.— 

25 In the case of any carbon-intensive product im26 ported into the United States, there is imposed 


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1 an equivalency fee on the person importing such 

2 product in an amount equal to the cost of such 

3 product that would be attributable to any fees 

4 imposed under this subchapter related to the 

5 manufacturing of such product if any inputs or 

6 processes used in manufacturing such product 

7 were subject to such fees (as determined under 

8 regulations established by the Secretary). 

9 ‘‘(B) REDUCTION IN FEE.—The amount of 

10 the equivalency fee under subparagraph (A) 

11 shall be reduced by the amount, if any, of any 

12 fees imposed on the carbon-intensive product by 

13 the foreign nation or governmental units from 

14 which such product was imported. 

15 ‘‘(2) COVERED FUELS.— 

16 ‘‘(A) IN GENERAL.—In the case of any 

17 covered fuel imported into the United States, 

18 there is imposed a fee on the person importing 

19 such fuel in an amount equal to the amount of 

20 any fees that would be imposed under this sub21 chapter related to the use, sale, or transfer of 

22 such fuel. 

23 ‘‘(B) REDUCTION IN FEE.—The amount of 

24 the fee under subparagraph (A) shall be re25 duced by the amount, if any, of any fees imVerDate Sep 11 2014 22:21 Apr 04, 2021 Jkt 019200 PO 00000 Frm 00045 Fmt 6652 Sfmt 6201 E:\BILLS\S685.IS S685

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1 posed on the covered fuel by the foreign nation 

2 or governmental units from which the fuel was 

3 imported. 

4 ‘‘(d) TREATMENT OF ALTERNATIVE POLICIES AS

5 FEES.—Under regulations established by the Secretary, 

6 foreign policies that have substantially the same effect in 

7 reducing emissions of greenhouse gases as fees shall be 

8 treated as fees for purposes of subsections (b) and (c). 

9 ‘‘(e) REGULATORY AUTHORITY.— 

10 ‘‘(1) IN GENERAL.—The Secretary shall consult 

11 with the Administrator, the Secretary of Commerce, 

12 and the Secretary of Energy in establishing rules 

13 and regulations implementing the purposes of this 

14 section. 

15 ‘‘(2) TREATIES.—The Secretary, in consulta16 tion with the Secretary of State, may adjust the ap17 plicable amounts of the refunds and equivalency fees 

18 under this section in a manner that is consistent 

19 with any obligations of the United States under an 

20 international agreement.’’. 

21 (b) EFFECTIVE DATE.—The amendment made by 

22 this section shall apply to periods beginning after Decem23 ber 31, 2022. 


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1 SEC. 4. AMERICA’S CLEAN FUTURE FUND. 

2 (a) IN GENERAL.—Subchapter A of chapter 98 of the 

3 Internal Revenue Code of 1986 is amended by adding at 

4 the end the following: 

5 ‘‘SEC. 9512. AMERICA’S CLEAN FUTURE FUND. 

6 ‘‘(a) ESTABLISHMENT AND FUNDING.—There is es7 tablished in the Treasury of the United States a trust fund 

8 to be known as the ‘America’s Clean Future Fund’ (re9 ferred to in this section as the ‘Trust Fund’), consisting 

10 of such amounts as are appropriated to the Trust Fund 

11 under subsection (b). 

12 ‘‘(b) TRANSFERS TO AMERICA’S CLEAN FUTURE

13 FUND.—There is appropriated to the Trust Fund, out of 

14 any funds in the Treasury not otherwise appropriated, 

15 amounts equal to the fees received into the Treasury 

16 under sections 4692, 4693, and 4695, less— 

17 ‘‘(1) any amounts refunded or paid under sec18 tions 4692(d), 4694, and 4695(b), and 

19 ‘‘(2) for each of the first 18 fiscal years begin20 ning after September 30, 2023, an amount equal to 

21 the quotient of— 

22 ‘‘(A) $100,000,000,000, and 

23 ‘‘(B) 18. 

24 ‘‘(c) EXPENDITURES.—For each fiscal year, amounts 

25 in the Trust Fund shall be apportioned as follows: 


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1 ‘‘(1) CARBON FEE REBATE AND AGRICULTURAL

2 DECARBONIZATION TRANSITION PAYMENTS.— 

3 ‘‘(A) CARBON FEE REBATE.—For the pur4 poses described in section 5 of the America’s 

5 Clean Future Fund Act and any expenses nec6 essary to administer such section— 

7 ‘‘(i) for each of the first 10 fiscal 

8 years beginning after September 30, 2023, 

9 an amount equal to— 

10 ‘‘(I) 75 percent of those amounts, 

11 minus 

12 ‘‘(II) the amount determined 

13 under subparagraph (B) for such fis14 cal year, and 

15 ‘‘(ii) for any fiscal year beginning 

16 after the period described in clause (i), the 

17 applicable percentage of such amounts. 

18 ‘‘(B) AGRICULTURAL DECARBONIZATION

19 TRANSITION PAYMENTS.—For the purposes de20 scribed in section 6 of the America’s Clean Fu21 ture Fund Act, for each of the first 10 fiscal 

22 years beginning after September 30, 2023, an 

23 amount equal to 7 percent of the amount deter24 mined annually under subparagraph (A)(i)(I). 


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1 ‘‘(C) APPLICABLE PERCENTAGE.—For 

2 purposes of subparagraph (A)(ii), the applicable 

3 percentage shall be equal to— 

4 ‘‘(i) for the first fiscal year beginning 

5 after the period described in subparagraph 

6 (A)(i), 76 percent, 

7 ‘‘(ii) for each of the first 3 fiscal years 

8 subsequent to the period described in 

9 clause (i), the applicable percentage for the 

10 preceding fiscal year increased by 1 per11 centage point, and 

12 ‘‘(iii) for any fiscal year subsequent to 

13 the period described in clause (ii), 80 per14 cent. 

15 ‘‘(2) CLIMATE CHANGE FINANCE CORPORA16 TION.— 

17 ‘‘(A) IN GENERAL.—For the purposes de18 scribed in section 2 of the America’s Clean Fu19 ture Fund Act, the applicable percentage of 

20 such amounts. 

21 ‘‘(B) APPLICABLE PERCENTAGE.—For 

22 purposes of this paragraph, the applicable per23 centage shall be equal to— 

24 ‘‘(i) for each of the first 10 fiscal 

25 years beginning after the period described 


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1 in subsection (e) of such section, 15 per2 cent, 

3 ‘‘(ii) for each of the first 4 fiscal years 

4 subsequent to the period described in 

5 clause (i), the applicable percentage for the 

6 preceding fiscal year increased by 1 per7 centage point, and 

8 ‘‘(iii) for any fiscal year subsequent to 

9 the period described in clause (ii), 20 per10 cent. 

11 ‘‘(3) TRANSITION ASSISTANCE FOR IMPACTED

12 COMMUNITIES.— 

13 ‘‘(A) IN GENERAL.—For the purposes de14 scribed in section 7 of the America’s Clean Fu15 ture Fund Act, the applicable percentage of 

16 such amounts. 

17 ‘‘(B) APPLICABLE PERCENTAGE.—For 

18 purposes of this paragraph, the applicable per19 centage shall be equal to— 

20 ‘‘(i) for each of the first 10 fiscal 

21 years beginning after September 30, 2023, 

22 10 percent, 

23 ‘‘(ii) for each of the first 4 fiscal years 

24 subsequent to the period described in 

25 clause (i), the applicable percentage for the 


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1 preceding fiscal year reduced by 2 percent2 age points, and 

3 ‘‘(iii) for any fiscal year subsequent to 

4 the period described in clause (ii), 0 per5 cent.’’. 

6 (b) CLERICAL AMENDMENT.—The table of sections 

7 for subchapter A of chapter 98 of the Internal Revenue 

8 Code of 1986 is amended by adding at the end the fol9 lowing new item: 

‘‘Sec. 9512. America’s Clean Future Fund.’’. 

10 SEC. 5. AMERICA’S CLEAN FUTURE FUND STIMULUS. 

11 (a) ELIGIBLE INDIVIDUAL.— 

12 (1) IN GENERAL.—In this section, the term ‘‘el13 igible individual’’ means, with respect to any quar14 ter, any natural living person— 

15 (A) who has a valid Social Security num16 ber or taxpayer identification number, 

17 (B) who has attained 18 years of age, and 

18 (C) whose principal place of abode is in the 

19 United States for more than one-half of the 

20 most recent taxable year for which a return has 

21 been filed. 

22 (2) VERIFICATION.—The Secretary of the 

23 Treasury, or the Secretary’s delegate (referred to in 

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1 bility of an individual to receive a carbon fee rebate 

2 payment under subsection (b). 

3 (b) REBATES.—Subject to subsections (c)(2) and (k), 

4 from amounts in the America’s Clean Future Fund estab5 lished by section 9512(c)(1)(A) of the Internal Revenue 

6 Code of 1986 that are available in any year, the Secretary 

7 shall, for each calendar quarter beginning after September 

8 30, 2023, make carbon fee rebate payments to each eligi9 ble individual, to be known as ‘‘America’s Clean Future 

10 Fund Stimulus payments’’ (referred to in this section as 

11 ‘‘carbon fee rebate payments’’). 

12 (c) PRO-RATA SHARE.— 

13 (1) IN GENERAL.—With respect to each quarter 

14 during any fiscal year beginning after September 30, 

15 2023, the carbon fee rebate payment is 1 pro-rata 

16 share for each eligible individual of an amount equal 

17 to 25 percent of amounts apportioned under section 

18 9512(c)(1)(A) of the Internal Revenue Code of 1986 

19 for such fiscal year. 

20 (2) INITIAL ANNUAL REBATE PAYMENTS.— 

21 (A) IN GENERAL.—From amounts appro22 priated under subsection (j), the Secretary 

23 shall, for each of fiscal years 2022 and 2023, 

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1 ble individual during the third quarter of each 

2 such fiscal year. 

3 (B) PRO-RATA SHARE.—For purposes of 

4 this paragraph, the carbon fee rebate payment 

5 is 1 pro-rata share for each eligible individual 

6 of the amount appropriated under subsection (j) 

7 for the fiscal year. 

8 (3) ESTIMATE.—For each fiscal year described 

9 in paragraph (1), the Secretary shall, not later than 

10 the first day of such fiscal year, publicly announce 

11 an estimate of the amount of the carbon fee rebate 

12 payment for each quarter during such fiscal year. 

13 (d) PHASEOUT.— 

14 (1) DEFINITIONS.—In this subsection: 

15 (A) MODIFIED ADJUSTED GROSS IN16 COME.—The term ‘‘modified adjusted gross in17 come’’ means adjusted gross income increased 

18 by any amount excluded from gross income 

19 under section 911, 931, or 933 of the Internal 

20 Revenue Code of 1986. 

21 (B) HOUSEHOLD MEMBER.—The term 

22 ‘‘household member of the taxpayer’’ means the 

23 taxpayer, the taxpayer’s spouse, and any de24 pendent of the taxpayer. 


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1 (C) THRESHOLD AMOUNT.—The term 

2 ‘‘threshold amount’’ means— 

3 (i) $150,000 in the case of a taxpayer 

4 filing a joint return, and 

5 (ii) $75,000 in the case of a taxpayer 

6 not filing a joint return. 

7 (2) PHASEOUT OF PAYMENTS.—In the case of 

8 any taxpayer whose modified adjusted gross income 

9 for the most recent taxable year for which a return 

10 has been filed exceeds the threshold amount, the 

11 amount of the carbon fee rebate payment otherwise 

12 payable to any household member of the taxpayer 

13 under this section shall be reduced (but not below 

14 zero) by a dollar amount equal to 5 percent of such 

15 payment (as determined before application of this 

16 paragraph) for each $1,000 (or fraction thereof) by 

17 which the modified adjusted gross income of the tax18 payer exceeds the threshold amount. 

19 (e) FEE TREATMENT OF PAYMENTS.—Amounts paid 

20 under this section shall not be includible in gross income 

21 for purposes of Federal income taxes. 

22 (f) FEDERAL PROGRAMS AND FEDERAL ASSISTED

23 PROGRAMS.—The carbon fee rebate payment received by 

24 any eligible individual shall not be taken into account as 

25 income and shall not be taken into account as resources 


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1 for purposes of determining the eligibility of such indi2 vidual or any other individual for benefits or assistance, 

3 or the amount or extent of benefits or assistance, under 

4 any Federal program or under any State or local program 

5 financed in whole or in part with Federal funds. 

6 (g) DISCLOSURE OF RETURN INFORMATION.—Sec7 tion 6103(l) of the Internal Revenue Code of 1986 is 

8 amended by adding at the end the following new para9 graph: 

10 ‘‘(23) DISCLOSURE OF RETURN INFORMATION

11 RELATING TO CARBON FEE REBATE PAYMENTS.— 

12 ‘‘(A) DEPARTMENT OF TREASURY.—Re13 turn information with respect to any taxpayer 

14 shall, without written request, be open to in15 spection by or disclosure to officers and employ16 ees of the Department of the Treasury whose 

17 official duties require such inspection or disclo18 sure for purposes of administering section 5 of 

19 the America’s Clean Future Fund Act. 

20 ‘‘(B) RESTRICTION ON DISCLOSURE.—In21 formation disclosed under this paragraph shall 

22 be disclosed only for purposes of, and to the ex23 tent necessary in, carrying out such section.’’. 


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1 (h) REGULATIONS.—The Secretary shall prescribe 

2 such regulations, and other guidance, as may be necessary 

3 to carry out the purposes of this section, including— 

4 (1) establishment of rules for eligible individ5 uals who have not filed a recent tax return, and 

6 (2) in coordination with the Commissioner of 

7 Social Security, the Secretary of Veterans Affairs, 

8 and any relevant State agencies, establish methods 

9 to identify eligible individuals and provide carbon fee 

10 rebate payments to such individuals through appro11 priate means of distribution, including through the 

12 use of electronic benefit transfer cards. 

13 (i) PUBLIC AWARENESS CAMPAIGN.—The Secretary 

14 shall conduct a public awareness campaign, in coordina15 tion with the Commissioner of Social Security, the heads 

16 of other relevant Federal agencies, and Indian Tribes (as 

17 defined in section 4 of the Indian Self-Determination and 

18 Education Assistance Act (25 U.S.C. 5304)), to provide 

19 information to the public regarding the availability of car20 bon fee rebate payments under this section. 

21 (j) INITIAL APPROPRIATION.—For purposes of sub22 section (c)(2), there is appropriated, out of any funds in 

23 the Treasury not otherwise appropriated, to remain avail24 able until expended— 


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1 (1) for the fiscal year ending September 30, 

2 2022, $37,500,000,000, and 

3 (2) for the fiscal year ending September 30, 

4 2023, $37,500,000,000. 

5 (k) TERMINATION.—This section shall not apply to 

6 any calendar quarter beginning after— 

7 (1) a determination by the Secretary under sec8 tion 4692(d)(3)(B) of the Internal Revenue Code of 

9 1986; or 

10 (2) any period of 8 consecutive calendar quar11 ters for which the amount of carbon fee rebate pay12 ment (without application of subsection (d)) during 

13 each such quarter is less than $20. 

14 SEC. 6. AGRICULTURAL DECARBONIZATION TRANSITION 

15 PAYMENTS. 

16 (a) PURPOSES.—The purposes of this section are— 

17 (1) to provide transition assistance to eligible 

18 producers in the agricultural, livestock, and forestry 

19 sectors to prepare for and facilitate entry into pri20 vate sector greenhouse gas credit markets; and 

21 (2) to provide for the collection and reporting 

22 of data under subsection (d). 

23 (b) DEFINITIONS.—In this section: 

24 (1) ELIGIBLE LAND.— 


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1 (A) IN GENERAL.—The term ‘‘eligible 

2 land’’ means land in the United States— 

3 (i) on which farming, ranching, or for4 estry may physically and legally be con5 ducted; and 

6 (ii) that is— 

7 (I) cropland, grassland, 

8 pastureland, rangeland, hayland, or 

9 other land on which food, feed, fiber, 

10 crops, livestock, or other agricultural 

11 products are produced or capable of 

12 being produced; or 

13 (II) nonindustrial private forest 

14 land (as defined in section 5(c) of the 

15 Cooperative Forestry Assistance Act 

16 of 1978 (16 U.S.C. 2103a(c))). 

17 (B) INCLUSION OF TRIBAL LAND.—The 

18 term ‘‘eligible land’’ includes land described in 

19 subparagraph (A) that is Indian land (as de20 fined in section 2601 of the Energy Policy Act 

21 of 1992 (25 U.S.C. 3501)). 

22 (2) ELIGIBLE PRODUCER.—The term ‘‘eligible 

23 producer’’ means an individual or legal entity that— 

24 (A) is an owner, operator, or tenant of eli25 gible land; 


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1 (B) has control over the eligible land; 

2 (C) is actively engaged in farming, ranch3 ing, or forestry on the eligible land, as deter4 mined by the Secretary; 

5 (D) bears the risk of loss of the farming, 

6 ranching, or forestry on the eligible land; and 

7 (E) has the ability to enter into an agree8 ment with the Secretary to carry out qualifying 

9 practices described in subsection (c)(2) under 

10 the program. 

11 (3) GREENHOUSE GAS EMISSIONS REDUC12 TION.—The term ‘‘greenhouse gas emissions reduc13 tion’’ means the reduction in greenhouse gas emis14 sions as a result of the adoption of qualifying prac15 tices described in subsection (c)(2), as compared to 

16 a historical baseline. 

17 (4) HISTORICALLY UNDERSERVED.—The term 

18 ‘‘historically underserved’’, with respect to an eligible 

19 producer, means that the eligible producer— 

20 (A) is American Indian or Alaskan Native; 

21 (B) is Asian or Asian American; 

22 (C) is Black or African American; 

23 (D) is Native Hawaiian or Pacific Islander; 

24 (E) is Hispanic; 

25 (F) is disabled; 


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1 (G) is female; 

2 (H) is new to farming, ranching, or for3 estry, as determined by the Secretary; 

4 (I)(i) has served in the United States 

5 Armed Forces; and 

6 (ii)(I) has not operated a farm, ranch, or 

7 forestry operation; 

8 (II) is new to farming, ranching, or for9 estry, as determined by the Secretary; or 

10 (III) first obtained veteran status during 

11 the previous 5-year period; or 

12 (J) is an owner, operator, or tenant of a 

13 limited resource farming, ranching, or forestry 

14 operation or has a household income not great15 er than the national poverty level. 

16 (5) PROGRAM.—The term ‘‘program’’ means 

17 the program established under subsection (c)(1). 

18 (6) SECRETARY.—The term ‘‘Secretary’’ means 

19 the Secretary of Agriculture. 

20 (c) ESTABLISHMENT OF PROGRAM.— 

21 (1) IN GENERAL.—The Secretary, in consulta22 tion with the Administrator of the Environmental 

23 Protection Agency, shall establish a program to pro24 vide payments to eligible producers that will assist 

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1 sions through the adoption of qualifying practices 

2 described in paragraph (2). 

3 (2) QUALIFYING PRACTICES.— 

4 (A) IN GENERAL.—To be eligible for pay5 ments under the program, a practice shall be— 

6 (i) approved by the Secretary; and 

7 (ii) measurable, reportable, and 

8 verifiable for reducing greenhouse gas 

9 emissions, as determined by the Secretary. 

10 (B) INCLUDED PRACTICES.—Practices that 

11 the Secretary may determine to be qualifying 

12 practices under the program include— 

13 (i) improved crop, soil health, water, 

14 and land management systems, includ15 ing— 

16 (I) diversified soil health-enhanc17 ing cropping systems that may include 

18 resource-conserving crop rotations, 

19 cover crops, and sod crops; 

20 (II) conservation plantings, such 

21 as prairie strips, contour grass strips, 

22 filter strips and riparian buffers, field 

23 borders, hedgerows, windbreaks, alley 

24 cropping, and silvopasture or other 

25 agroforestry plantings; 


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1 (III) conservation tillage; 

2 (IV) fertilizer practice improve3 ments, including biologically based nu4 trient management; 

5 (V) ecologically appropriate refor6 estation and other sustainable forestry 

7 and related stewardship practices; 

8 (VI) application of soil carbon 

9 amendments, such as compost or 

10 biochar; 

11 (VII) restoration or avoidance of 

12 the conversion of grassland, wetland, 

13 and forest land; and 

14 (VIII) the adoption of organic 

15 and other similar advanced 

16 agroecological production systems; 

17 (ii) livestock management, including— 

18 (I) enteric fermentation reduc19 tion, including— 

20 (aa) improved feed, forage, 

21 and grazing; and 

22 (bb) feed additives approved 

23 by the Commissioner of Food 

24 and Drugs; 


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1 (II) improved manure manage2 ment, including anaerobic digesters; 

3 and 

4 (III) the integration of livestock 

5 and crop production; 

6 (iii) on-site capital upgrades and in7 frastructure investments, including— 

8 (I) building and equipment refur9 bishment or upgrades, including en10 ergy efficiency technologies and digital 

11 technologies; and 

12 (II) the adoption of renewable or 

13 clean energy; 

14 (iv) conservation easements, including 

15 farm, ranch, and forest land preservation, 

16 that include conservation activities to im17 prove soil health and reduce greenhouse 

18 gas emissions; and 

19 (v) other similar practices, as deter20 mined by the Secretary. 

21 (3) CONSIDERATIONS.—In determining the rate 

22 and duration of a payment under paragraph (1), the 

23 Secretary shall consider— 

24 (A) the degree of additionality of the 

25 greenhouse gas emissions reduction; 


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1 (B) whether the recipient of the payment 

2 was an early adopter of 1 or more practices 

3 that reduce greenhouse gas emissions; 

4 (C) the likelihood that the applicable quali5 fying practice described in paragraph (2) would 

6 have been carried out absent the provision of 

7 the payment; 

8 (D) the degree of transitionality or perma9 nence of the greenhouse gas emissions reduc10 tion; 

11 (E) whether the applicable qualifying prac12 tice described in paragraph (2) provides mul13 tiple environmental and health co-benefits in 

14 addition to reduced greenhouse gas emissions; 

15 (F) the degree to which current soil condi16 tions influence the greenhouse gas emissions re17 ductions; 

18 (G) the degree to which the recipient of 

19 the payment is a historically underserved eligi20 ble producer; 

21 (H) the integration with and enhancement 

22 of payments and policies of similar Federal, 

23 State, or local programs; and 

24 (I) any payments received, or to be re25 ceived, by the applicable eligible producer from 


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1 a private carbon offset market due to the appli2 cable qualifying practice described in paragraph 

3 (2). 

4 (4) INELIGIBILITY.—A person that is deter5 mined to be in violation of any applicable water or 

6 air quality regulation, including under the Federal 

7 Water Pollution Control Act (33 U.S.C. 1251 et 

8 seq.) (including regulations), shall not be eligible for 

9 any payment under paragraph (1) during the period 

10 of the violation. 

11 (5) EFFECTIVENESS.—The authority to provide 

12 payments under this subsection shall be effective for 

13 each of the first 10 fiscal years beginning after Sep14 tember 30, 2022. 

15 (d) COLLECTION OF DATA AND REPORTING.— 

16 (1) MEASUREMENT SYSTEM.— 

17 (A) IN GENERAL.—The Secretary shall es18 tablish an outcomes-based measurement system 

19 (referred to in this paragraph as the ‘‘measure20 ment system’’) that uses the best available 

21 science and technology for cost-effective record22 keeping, modeling, and measurement of farm23 level greenhouse gas emissions on eligible land 

24 enrolled in the program. 


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1 (B) STANDARDS.—Not later than 18 

2 months after the date of enactment of this Act, 

3 the Secretary shall promulgate standards on the 

4 measurement system, based on information ob5 tained from— 

6 (i) agro-ecosystem models; 

7 (ii) remote sensing data and analysis; 

8 (iii) soil health demonstration trials; 

9 and 

10 (iv) field-level measurement. 

11 (C) PROTOCOLS.—In developing the meas12 urement system, the Secretary shall compile 

13 and publish a list of generally accepted public 

14 and private protocols for soil health and green15 house gas programs and markets. 

16 (D) REVIEW.—The Secretary shall main17 tain the measurement system by— 

18 (i) conducting an annual review of the 

19 measurement system; and 

20 (ii) making any necessary updates to 

21 the measurement system. 

22 (2) INVENTORY.— 

23 (A) IN GENERAL.—For the purposes of 

24 providing payments under the program, the 

25 Secretary shall conduct a nationwide soil health 


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1 and agricultural greenhouse gas emissions in2 ventory that uses the best available science and 

3 data to establish baselines and expected average 

4 performance for soil carbon drawdown and stor5 age and greenhouse gas emissions reduction by 

6 primary production type and production region. 

7 (B) DATABASE.—The Secretary shall— 

8 (i) establish an accessible and inter9 operable database for the inventory estab10 lished under subparagraph (A) using the 

11 measurement system established under 

12 paragraph (1); and 

13 (ii) improve and update the database 

14 as new data is collected, but not less fre15 quently than once every 2 years. 

16 (3) CRITERIA.— 

17 (A) IN GENERAL.—The Secretary shall es18 tablish criteria for payments under the program 

19 to inform policy and markets established to pro20 mote soil carbon sequestration or greenhouse 

21 gas emissions reductions. 

22 (B) REQUIREMENTS.—The criteria estab23 lished under subparagraph (A) shall— 

24 (i) have a documented likelihood to 

25 lead to transitioning towards or providing 


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1 long-term net greenhouse gas emissions re2 ductions, according to the best available 

3 science; 

4 (ii) be based in part on environmental 

5 impact modeling of the changes of shifting 

6 from baseline practices to new or improved 

7 practices; and 

8 (iii) prevent, to the maximum extent 

9 practicable, the degradation of other nat10 ural resource or environmental conditions. 

11 (4) MEASUREMENT, REPORTING, MONITORING, 

12 AND VERIFICATION SERVICES.— 

13 (A) IN GENERAL.—The Secretary— 

14 (i) shall provide services described in 

15 subparagraph (B) to eligible producers 

16 participating in the program; and 

17 (ii) may approve and provide oversight 

18 of 1 or more third-party agents to provide 

19 services described in subparagraph (B) to 

20 eligible producers participating in the pro21 gram. 

22 (B) SERVICES DESCRIBED.—Services re23 ferred to in subparagraph (A) are determining 

24 the greenhouse gas emissions reduction by— 

25 (i) measurement; 


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1 (ii) reporting; 

2 (iii) monitoring; and 

3 (iv) verification. 

4 (C) USE OF PROTOCOLS.—Services re5 ferred to in subparagraph (A) shall be provided 

6 using— 

7 (i) the measurement system described 

8 in paragraph (1); and 

9 (ii) the criteria described in paragraph 

10 (3). 

11 (D) USE OF DEPARTMENT OF AGRI12 CULTURE RESOURCES.—The Secretary shall re13 quire a third-party agent approved under sub14 paragraph (A)(ii) to use the resources, boards, 

15 committees, geospatial data, aerial or other 

16 maps, employees, offices, and capacities of the 

17 Department of Agriculture, to the maximum ex18 tent practicable, in providing services under 

19 that subparagraph to eligible producers. 

20 (E) PRIVACY AND DATA SECURITY.— 

21 (i) IN GENERAL.—The Secretary shall 

22 establish— 

23 (I) safeguards to protect the pri24 vacy of information that is submitted 

25 through or retained by a third-party 


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1 agent approved under subparagraph 

2 (A), including employees and contrac3 tors of the third-party agent; and 

4 (II) such other rules and stand5 ards of data security as the Secretary 

6 determines to be appropriate to carry 

7 out this subsection. 

8 (ii) PENALTIES.—The Secretary shall 

9 establish penalties for any violations of pri10 vacy or confidentiality under clause (i). 

11 (F) DISCLOSURE OF INFORMATION.— 

12 (i) PUBLIC DISCLOSURE.—Informa13 tion collected for purposes of services pro14 vided under subparagraph (A) may be dis15 closed to the public— 

16 (I) if the information is trans17 formed into a statistical or aggregate 

18 form such that the information does 

19 not include any identifiable or per20 sonal information of individual pro21 ducers; or 

22 (II) in a form that may include 

23 identifiable or personal information of 

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1 sents to the disclosure of the informa2 tion. 

3 (ii) REQUIREMENT.—The participa4 tion of a producer in, and the receipt of 

5 any benefit by the producer under, a pro6 gram under this section or any other pro7 gram administered by the Secretary may 

8 not be conditioned on the producer pro9 viding consent under clause (i)(II). 

10 (iii) RESEARCH, AUDIT, AND PRO11 GRAM IMPROVEMENT.—Information col12 lected for the purposes of services provided 

13 under subparagraph (A) may be disclosed 

14 for the purposes of providing technical as15 sistance, including audit, research, or im16 provement of a program under this section, 

17 either in aggregate or in a form that in18 cludes identifiable or personal information 

19 of a producer, if the Secretary obtains ade20 quate assurances that— 

21 (I) the recipient shall ensure pri22 vacy safeguards of identifiable or per23 sonal information of a producer; and 

24 (II) the release of any data to the 

25 public will only occur only if the data 


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1 has been transformed into a statistical 

2 or aggregate form. 

3 (e) REGULATIONS.—Not later than July 1, 2022, the 

4 Secretary shall promulgate regulations to carry out this 

5 section, including— 

6 (1) the amount of a payment under subsection 

7 (c), which shall be based on— 

8 (A) the quantity of carbon dioxide equiva9 lent emissions reduced; and 

10 (B) the considerations described in sub11 section (c)(3); 

12 (2) a methodology that any third-party agents 

13 approved under subsection (d)(4)(A)(ii) shall use to 

14 provide the services under that subsection, includ15 ing— 

16 (A) an accreditation process; and 

17 (B) a conflict of interest policy; and 

18 (3) provisions for the ownership and transport19 ability of data, including historical data, generated 

20 by an eligible producer for the purpose of deter21 mining eligibility for payments under the program. 

22 SEC. 7. TRANSITION ASSISTANCE FOR IMPACTED COMMU23 NITIES. 

24 (a) DEFINITIONS.—In this section: 


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1 (1) INDIAN TRIBE.—The term ‘‘Indian Tribe’’ 

2 has the meaning given the term in section 4 of the 

3 Indian Self-Determination and Education Assistance 

4 Act (25 U.S.C. 5304). 

5 (2) INDIVIDUAL WITH A BARRIER TO EMPLOY6 MENT.—The term ‘‘individual with a barrier to em7 ployment’’ has the meaning given the term in section 

8 3 of the Workforce Innovation and Opportunity Act 

9 (29 U.S.C. 3102). 

10 (3) INSTITUTION OF HIGHER EDUCATION.—The 

11 term ‘‘institution of higher education’’ has the 

12 meaning given the term in section 101 of the Higher 

13 Education Act of 1965 (20 U.S.C. 1001). 

14 (4) LOCAL BOARD.—The term ‘‘local board’’ 

15 has the meaning given the term in section 3 of the 

16 Workforce Innovation and Opportunity Act (29 

17 U.S.C. 3102). 

18 (5) RECOGNIZED POSTSECONDARY CREDEN19 TIAL.—The term ‘‘recognized postsecondary creden20 tial’’ has the meaning given the term in section 3 of 

21 the Workforce Innovation and Opportunity Act (29 

22 U.S.C. 3102). 

23 (6) SECRETARY.—The term ‘‘Secretary’’ means 

24 the Secretary of Commerce, acting through the AsVerDate Sep 11 2014 22:21 Apr 04, 2021 Jkt 019200 PO 00000 Frm 00073 Fmt 6652 Sfmt 6201 E:\BILLS\S685.IS S685

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1 sistant Secretary of Commerce for Economic Devel2 opment. 

3 (7) STATE.—The term ‘‘State’’ means— 

4 (A) a State; 

5 (B) the District of Columbia; 

6 (C) the Commonwealth of Puerto Rico; 

7 and 

8 (D) any other territory or possession of the 

9 United States. 

10 (8) STATE BOARD.—The term ‘‘State board’’ 

11 has the meaning given the term in section 3 of the 

12 Workforce Innovation and Opportunity Act (29 

13 U.S.C. 3102). 

14 (9) SUPPORTIVE SERVICES.—The term ‘‘sup15 portive services’’ has the meaning given the term in 

16 section 3 of the Workforce Innovation and Oppor17 tunity Act (29 U.S.C. 3102). 

18 (b) GRANTS.—The Secretary, in coordination with 

19 the Secretary of Labor, shall provide grants to eligible en20 tities for transition assistance to a low-carbon economy. 

21 (c) ELIGIBLE ENTITIES.—An entity eligible to re22 ceive a grant under this section is a labor organization, 

23 an institution of higher education, a unit of State or local 

24 government, an Indian Tribe, an economic development 

25 organization, a nonprofit organization, community-based 


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1 organization, or intermediary, or a State board or local 

2 board that serves or is located in a community that— 

3 (1) as determined by the Secretary, in coordina4 tion with the Secretary of Labor, has been or will be 

5 impacted by economic changes in carbon-intensive 

6 industries, including job losses; 

7 (2) as determined by the Secretary, in consulta8 tion with the Administrator of the Federal Emer9 gency Management Agency, has been or is at risk of 

10 being impacted by extreme weather events, sea level 

11 rise, and natural disasters related to climate change; 

12 or 

13 (3) as determined by the Secretary, in consulta14 tion with the Administrator of the Environmental 

15 Protection Agency, has been impacted by harmful 

16 residuals from a fossil fuel or carbon-intensive in17 dustry. 

18 (d) USE OF FUNDS.—An eligible entity that receives 

19 a grant under this section shall use the grant for— 

20 (1) economic and workforce development activi21 ties, such as— 

22 (A) job creation; 

23 (B) providing reemployment and worker 

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1 ing, transitional jobs, and supportive services, 

2 with priority given to— 

3 (i) workers impacted by changes in 

4 carbon-intensive industries; 

5 (ii) individuals with a barrier to em6 ployment; and 

7 (iii) programs that lead to a recog8 nized postsecondary credential; 

9 (C) local and regional investment, includ10 ing commercial and industrial economic diver11 sification; 

12 (D) export promotion; and 

13 (E) establishment of a monthly subsidy 

14 payment for workers who retire early due to 

15 economic changes in carbon-intensive industries; 

16 (2) climate change resiliency, such as— 

17 (A) building electrical, communications, 

18 utility, transportation, and other infrastructure 

19 in flood-prone areas above flood zone levels; 

20 (B) building flood and stormproofing 

21 measures in flood-prone areas and erosion22 prone areas; 

23 (C) increasing the resilience of a surface 

24 transportation infrastructure asset to withstand 


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1 extreme weather events and climate change im2 pacts; 

3 (D) improving stormwater infrastructure; 

4 (E) increasing the resilience of agriculture 

5 to extreme weather; 

6 (F) ecological restoration; 

7 (G) increasing the resilience of forests to 

8 wildfires; 

9 (H) increasing coastal resilience; and 

10 (I) implementing heat island cooling strat11 egies; 

12 (3) environmental cleanup from fossil fuel in13 dustry facilities that are abandoned or retired, or 

14 closed due to bankruptcy, and residuals from car15 bon-intensive industries, such as— 

16 (A) coal ash and petroleum coke cleanup; 

17 (B) mine reclamation; 

18 (C) reclamation and plugging of aban19 doned oil and natural gas wells on private and 

20 public land; and 

21 (D) remediation of impaired waterways 

22 and drinking water resources; or 

23 (4) other activities as the Secretary, in coordi24 nation with the Secretary of Labor, the Adminis25 trator of the Federal Emergency Management AgenVerDate Sep 11 2014 22:21 Apr 04, 2021 Jkt 019200 PO 00000 Frm 00077 Fmt 6652 Sfmt 6201 E:\BILLS\S685.IS S685

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1 cy, and the Administrator of the Environmental Pro2 tection Agency, determines to be appropriate. 

3 (e) REQUIREMENTS.— 

4 (1) LABOR STANDARDS; NONDISCRIMINA5 TION.—An eligible entity that receives a grant under 

6 this section shall use the funds in a manner con7 sistent with sections 181 and 188 of the Workforce 

8 Innovation and Opportunity Act (29 U.S.C. 3241, 

9 3248). 

10 (2) WAGE RATE REQUIREMENTS.— 

11 (A) IN GENERAL.—All laborers and me12 chanics employed by eligible entities to carry 

13 out projects and activities funded directly by or 

14 assisted in whole or in part by a grant under 

15 this section shall be paid at wages at rates not 

16 less than those prevailing on projects of a simi17 lar character in the locality as determined by 

18 the Secretary of Labor in accordance with sub19 chapter IV of chapter 31 of title 40, United 

20 States Code (commonly known as the ‘‘Davis21 Bacon Act’’). 

22 (B) AUTHORITY.—With respect to the 

23 labor standards specified in subparagraph (A), 

24 the Secretary of Labor shall have the authority 

25 and functions set forth in Reorganization Plan 


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1 Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. 

2 App.) and section 3145 of title 40, United 

3 States Code. 

4 (3) BUY AMERICA REQUIREMENTS.— 

5 (A) IN GENERAL.—All iron, steel, and 

6 manufactured goods used for projects and ac7 tivities carried out with a grant under this sec8 tion shall be produced in the United States. 

9 (B) WAIVER.—The Secretary may waive 

10 the requirement in subparagraph (A) if the Sec11 retary finds that— 

12 (i) enforcing the requirement would be 

13 inconsistent with the public interest; 

14 (ii) the iron, steel, and manufactured 

15 goods produced in the United States are 

16 not produced in a sufficient and reasonably 

17 available amount or are not of a satisfac18 tory quality; or 

19 (iii) enforcing the requirement will in20 crease the overall cost of the project or ac21 tivity by more than 25 percent. 

22 (f) COORDINATION.—An eligible entity that receives 

23 a grant under this section is encouraged to collaborate or 

24 partner with other eligible entities in carrying out activi25 ties with that grant. 


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1 (g) REPORT.—Not later than 3 years after the date 

2 on which the Secretary establishes the grant program 

3 under this section, the Secretary and the Secretary of 

4 Labor shall submit to Congress a report on the effective5 ness of the grant program, including— 

6 (1) the number of individuals that have received 

7 reemployment or worker transition assistance under 

8 this section; 

9 (2) a description of any job creation activities 

10 carried out with a grant under this section and the 

11 number of jobs created from those activities; 

12 (3) the percentage of individuals that have re13 ceived reemployment or worker transition assistance 

14 under this section who are, during the second and 

15 fourth quarters after exiting the program— 

16 (A) in education or training activities; or 

17 (B) employed; 

18 (4) the average wages of individuals that have 

19 received reemployment or worker transition assist20 ance under this section during the second and fourth 

21 quarters after exit from the program; 

22 (5) a description of any regional investment ac23 tivities carried out with a grant under this section; 


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1 (6) a description of any export promotion activi2 ties carried out with a grant under this section, in3 cluding— 

4 (A) a description of the products pro5 moted; and 

6 (B) an analysis of any increase in exports 

7 as a result of the promotion; 

8 (7) a description of any resilience activities car9 ried out with a grant under this section; 

10 (8) a description of any cleanup activities from 

11 fossil fuel industry facilities or carbon-intensive in12 dustries carried out with a grant under this section; 

13 and 

14 (9) the distribution of funding among geo15 graphic and socioeconomic groups, including urban 

16 and rural communities, low-income communities, 

17 communities of color, and Indian Tribes. 

18 (h) FUNDING.— 

19 (1) INITIAL FUNDING.—There is appropriated 

20 to the Secretary, out of any funds in the Treasury 

21 not otherwise appropriated, $5,000,000,000 for each 

22 of fiscal years 2022 and 2023 to carry out this sec23 tion, to remain available until expended. 

24 (2) AMERICA’S CLEAN FUTURE FUND.—The 

25 Secretary shall carry out this section using amounts 


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1 made available from the America’s Clean Future 

2 Fund under section 9512 of the Internal Revenue 

3 Code of 1986 (as added by section 4). 

4 SEC. 8. STUDY ON CARBON PRICING. 

5 (a) IN GENERAL.—Not later than January 1, 2025, 

6 the Administrator of the Environmental Protection Agen7 cy (referred to in this section as the ‘‘Administrator’’) 

8 shall seek to enter into an agreement with the National 

9 Academy of Sciences under which the National Academy 

10 of Sciences shall carry out a study not less frequently than 

11 once every 5 years to evaluate the effectiveness of the fees 

12 established under sections 4692 and 4693 of the Internal 

13 Revenue Code of 1986 in achieving the following goals: 

14 (1) A net reduction of greenhouse gas emissions 

15 by 45 percent, based on 2018 levels, by 2030. 

16 (2) A net reduction of greenhouse gas emissions 

17 by 100 percent, based on 2018 levels, by 2050. 

18 (b) REQUIREMENTS.—In executing the agreement 

19 under subsection (a), the Administrator shall ensure that, 

20 in carrying out a study under that subsection, the Na21 tional Academy of Sciences— 

22 (1) includes an evaluation of— 

23 (A) total annual greenhouse gas emissions 

24 by the United States, including greenhouse gas 


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1 emissions not subject to the fees described in 

2 that subsection; 

3 (B) the historic trends in the total green4 house gas emissions evaluated under subpara5 graph (A); and 

6 (C) the impacts of the fees established 

7 under sections 4692 and 4693 of the Internal 

8 Revenue Code of 1986 on changes in the levels 

9 of fossil fuel-related localized air pollutants in 

10 environmental justice communities; 

11 (2) analyzes the extent to which greenhouse gas 

12 emissions have been or would be reduced as a result 

13 of current and potential future policies, including— 

14 (A) a projection of greenhouse gas emis15 sions reductions that would result if the regula16 tions of the Administrator were to be adjusted 

17 to impose stricter limits on greenhouse gas 

18 emissions than the goals described in that sub19 section, with a particular focus on greenhouse 

20 gas emissions not subject to the fees described 

21 in that subsection; 

22 (B) the status of greenhouse gas emissions 

23 reductions that result from the fees established 

24 under sections 4692 and 4693 of the Internal 

25 Revenue Code of 1986; 


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1 (C) a projection of greenhouse gas emis2 sions reductions that would result if the fees es3 tablished under those sections were annually in4 creased— 

5 (i) at the current price path; and 

6 (ii) above the current price path; 

7 (D) an analysis of greenhouse gas emis8 sions reductions that result from the policies of 

9 States, units of local government, Tribal com10 munities, and the private sector; 

11 (E) a projection of greenhouse gas emis12 sions reductions that would result from the pro13 mulgation of additional Federal climate policies, 

14 including a clean energy standard, increased 

15 fuel economy and greenhouse gas emissions 

16 standards for motor vehicles, a low-carbon fuel 

17 standard, electrification of cars and heavy-duty 

18 trucks, and reforestation of not less than 

19 3,000,000 acres of land within the National 

20 Forest System; and 

21 (F) the status and projections of 

22 decarbonization in other major economies; and 

23 (3) submits a report to the Administrator, Con24 gress, and the Board of Directors of the Climate 


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1 Change Finance Corporation describing the results 

2 of the study. 

3 SEC. 9. ESTABLISHMENT OF TARGETS FOR CARBON SE4 QUESTRATION BY LAND AND WATER. 

5 (a) IN GENERAL.—The Chair of the Council on Envi6 ronmental Quality, in consultation with the Secretaries of 

7 Agriculture, Commerce, and the Interior, the Chief of En8 gineers, and the Administrator of the Environmental Pro9 tection Agency, shall— 

10 (1) establish a target for carbon sequestration 

11 that can reasonably be achieved through enhancing 

12 the ability of public and private land and water to 

13 function as natural carbon sinks; 

14 (2) develop strategies for meeting that target; 

15 and 

16 (3) develop strategies to expand protections for 

17 coastal ecosystems that sequester carbon and pro18 vide resiliency benefits, such as— 

19 (A) flood protection; 

20 (B) soil and beach retention; 

21 (C) erosion reduction; 

22 (D) biodiversity; 

23 (E) water purification; and 

24 (F) nutrient cycling. 


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1 (b) REPORT.—As soon as practicable after the date 

2 of enactment of this Act, the Chair of the Council on Envi3 ronmental Quality shall submit to Congress a report de4 scribing— 

5 (1) the target and strategies described in para6 graphs (1) through (3) of subsection (a); and 

7 (2) any additional statutory authorities or au8 thorized funding levels needed to successfully imple9 ment those strategies. 

Æ 


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