II 

118TH CONGRESS 

2D SESSION S. 5107 

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 

SEPTEMBER 19, 2024 

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 

10 known as the ‘‘Climate Change Finance CorporaVerDate Sep 11 2014 01:01 Sep 26, 2024 Jkt 049200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S5107.IS S5107

ssavage on LAPJG3WLY3PROD with BILLS
2 

•S 5107 IS

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.—The mission of the C2FC is to 

5 combat climate change by reducing the dependency 

6 of the United States on fossil fuels, reducing green7 house gas emissions, and building resilience to the 

8 harmful impacts of climate change. 

9 (3) ACTIVITIES.— 

10 (A) IN GENERAL.—The C2FC shall reduce 

11 the reliance of the United States on fossil fuels 

12 and mitigate the impacts of climate change by 

13 financing— 

14 (i) the deployment of low- and zero15 emissions energy technologies and fuels; 

16 (ii) the construction of climate-resil17 ient infrastructure; 

18 (iii) research, development, and com19 mercialization of new climate-smart tech20 nologies and tools to facilitate industrial 

21 decarbonization; 

22 (iv) clean energy and climate projects 

23 identified as too high-risk for private cap24 ital investment; and 


ssavage on LAPJG3WLY3PROD with BILLS
3 

•S 5107 IS

1 (v) projects that encourage the infu2 sion of private capital and the creation of 

3 new workforce opportunities in clean trans4 portation, energy, and climate resiliency. 

5 (B) PRIORITY.—In carrying out activities 

6 under subparagraph (A), the C2FC shall give 

7 priority to projects that benefit— 

8 (i) communities disproportionately 

9 facing the harmful impacts of climate 

10 change; 

11 (ii) communities that have been his12 torically overburdened by industrial pollu13 tion from carbon-intensive industries; and 

14 (iii) communities that have historically 

15 relied on carbon-intensive industries for 

16 economic support. 

17 (C) EMISSIONS REDUCTION GOALS.—In 

18 carrying out activities under subparagraph (A), 

19 the goals of the C2FC shall be to achieve— 

20 (i) by 2030, a net reduction of green21 house gas emissions by 45 percent, based 

22 on 2018 levels; and 

23 (ii) by 2050, a net reduction of green24 house gas emissions by 100 percent, based 

25 on 2018 levels. 


ssavage on LAPJG3WLY3PROD with BILLS
4 

•S 5107 IS

1 (4) EXERCISE OF POWERS.—Except as other2 wise provided expressly by law, all Federal laws deal3 ing with public or Federal contracts, property, 

4 works, officers, employees, budgets, or funds, includ5 ing the provisions of chapters 5 and 7 of title 5, 

6 United States Code, shall apply to the exercise of 

7 the powers of the C2FC. 

8 (b) BOARD OF DIRECTORS.— 

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

10 C2FC shall be vested in a Board of Directors (re11 ferred to in this section as the ‘‘Board’’) consisting 

12 of 7 members, who shall be appointed by the Presi13 dent, by and with the advice and consent of the Sen14 ate. 

15 (2) CHAIRPERSON AND VICE CHAIRPERSON.— 

16 (A) IN GENERAL.—A Chairperson and 

17 Vice Chairperson of the Board shall be ap18 pointed by the President, by and with the ad19 vice and consent of the Senate, from among the 

20 individuals appointed to the Board under para21 graph (1). 

22 (B) TERM.—An individual— 

23 (i) shall serve as Chairperson or Vice 

24 Chairperson of the Board for a 3-year 

25 term; and 


ssavage on LAPJG3WLY3PROD with BILLS
5 

•S 5107 IS

1 (ii) may be renominated for the posi2 tion until the term of that individual on 

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

4 (3) BOARD MEMBERS.— 

5 (A) CITIZENSHIP REQUIRED.—Each mem6 ber of the Board shall be an individual who is 

7 a citizen of the United States. 

8 (B) REPRESENTATION.—The members of 

9 the Board shall represent agricultural, edu10 cational, research, industrial, nongovernmental, 

11 labor, environmental justice, and commercial in12 terests throughout the United States. 

13 (C) TERM.— 

14 (i) IN GENERAL.—Except as otherwise 

15 provided in this section, each member of 

16 the Board— 

17 (I) shall be appointed for a term 

18 of 6 years; and 

19 (II) may be reappointed for 1 ad20 ditional term. 

21 (ii) INITIAL STAGGERED TERMS.—Of 

22 the members first appointed to the 

23 Board— 

24 (I) 2 shall each be appointed for 

25 a term of 2 years; 


ssavage on LAPJG3WLY3PROD with BILLS
6 

•S 5107 IS

1 (II) 3 shall each be appointed for 

2 a term of 4 years; and 

3 (III) 2 shall each be appointed 

4 for a term of 6 years. 

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

6 after the date on which all members of the Board 

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

8 hold an initial meeting. 

9 (c) WORKING GROUPS.— 

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

11 oversee, and incorporate feedback from the following 

12 working groups (each referred to in this section as 

13 a ‘‘working group’’): 

14 (A) An environmental justice working 

15 group. 

16 (B) A worker and community transition 

17 assistance working group. 

18 (C) A research and innovation working 

19 group. 

20 (2) WORKING GROUP MEMBERS.— 

21 (A) IN GENERAL.—Each working group 

22 shall— 

23 (i) be chaired by a Board member; 

24 and 


ssavage on LAPJG3WLY3PROD with BILLS
7 

•S 5107 IS

1 (ii) comprise not less than 10 and not 

2 more than 20 individuals, who shall be ex3 perts, members of directly impacted com4 munities relating to the subject matter of 

5 the working group, and other relevant 

6 stakeholders. 

7 (B) DIVERSITY.—Individuals on a working 

8 group shall, to the maximum extent practicable, 

9 represent— 

10 (i) a diverse array of interests related 

11 to the subject matter of the working group; 

12 and 

13 (ii) diverse geographical, racial, reli14 gious, gender, educational, age, disability, 

15 and socioeconomic backgrounds. 

16 (3) MEETINGS.—Each working group shall 

17 meet not less than 2 times per year. 

18 (4) COMMUNITY AND STAKEHOLDER ENGAGE19 MENT.— 

20 (A) IN GENERAL.—Each working group 

21 shall create and engage in meaningful commu22 nity and stakeholder involvement opportunities, 

23 including through regular public community en24 gagement activities, for purposes of— 


ssavage on LAPJG3WLY3PROD with BILLS
8 

•S 5107 IS

1 (i) maintaining up-to-date situational 

2 awareness about the needs of relevant com3 munities and stakeholders; 

4 (ii) using the feedback obtained 

5 through those opportunities to inform the 

6 advice of the working group to the Board; 

7 and 

8 (iii) providing a mechanism for direct 

9 and substantial community feedback relat10 ing to the investment plan and the funding 

11 decisions of the C2FC. 

12 (B) PUBLIC AWARENESS.—Each working 

13 group shall inform the public about C2FC in14 vestment by engaging in public awareness cam15 paigns, which shall target relevant communities 

16 through comprehensive and accessible outreach 

17 methods suited for the relevant community. 

18 (C) BROAD PARTICIPATION.—In carrying 

19 out subparagraph (A), each working group 

20 shall, to the maximum extent practicable, maxi21 mize participation from a broad group of stake22 holders, including by holding multiple meetings 

23 with significant advance notice, providing access 

24 to remote participation in those meetings, and 


ssavage on LAPJG3WLY3PROD with BILLS
9 

•S 5107 IS

1 holding meetings in multiple languages and at 

2 different times and locations. 

3 (5) TASKS.—Each working group shall, as it re4 lates to the subject matter of the working group— 

5 (A) advise and provide general input to the 

6 Board regarding loans and grants provided by 

7 the C2FC; and 

8 (B) consult with, and based on the activi9 ties described in paragraph (4), provide rec10 ommendations to, the Board in the development 

11 of and updates to the investment plan of the 

12 C2FC. 

13 (d) INVESTMENT PLAN.— 

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

15 with each working group described in subsection 

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

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

18 C2FC in accordance with this subsection. 

19 (2) PURPOSES.—The purposes of the invest20 ment plan are— 

21 (A) to ensure that investments made by 

22 the C2FC— 

23 (i) are equitable and reach the 

24 prioritized communities described in sub25 section (e)(2); 


ssavage on LAPJG3WLY3PROD with BILLS
10 

•S 5107 IS

1 (ii) are effective at progressing to2 wards the goals described in subsection 

3 (a)(3)(C); 

4 (iii) support the advancement of re5 search in clean technologies and resilience; 

6 and 

7 (iv) are transparent to the prioritized 

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

9 and 

10 (B) to provide methods and standards by 

11 which the Board and the working groups de12 scribed in subsection (c)(1) shall choose 

13 projects in which to invest. 

14 (3) DISTRIBUTION OF GRANT FUNDS.—The ini15 tial investment plan shall require that, of the total 

16 amount of grant funds provided under subsection 

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

18 be used to invest in and benefit communities de19 scribed in subsection (e)(2)(A). 

20 (4) INVESTMENT PLAN UPDATES.— 

21 (A) IN GENERAL.—The Board, in con22 sultation with each working group described in 

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

24 plan not later than 1 year after the date of enVerDate Sep 11 2014 01:01 Sep 26, 2024 Jkt 049200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S5107.IS S5107

ssavage on LAPJG3WLY3PROD with BILLS
11 

•S 5107 IS

1 actment of this Act, and every 4 years there2 after, including by taking into account— 

3 (i) the current needs of the prioritized 

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

5 (ii) the effectiveness of the previous 

6 investment plan in addressing the needs of 

7 those communities; 

8 (iii) the current state of relevant re9 search and technology; 

10 (iv) the resiliency needs of local com11 munities; 

12 (v) the goals described in subsection 

13 (a)(3)(C); and 

14 (vi) the 2 most recent program re15 views conducted under subsection (f). 

16 (B) EFFECTIVENESS.—An investment plan 

17 shall remain in effect until the date on which 

18 the Board approves an updated investment 

19 plan. 

20 (C) PUBLIC INPUT.—In updating the in21 vestment plan, the Board and the working 

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

23 (i) engage stakeholders and the public 

24 in a public comment and feedback process; 

25 and 


ssavage on LAPJG3WLY3PROD with BILLS
12 

•S 5107 IS

1 (ii) ensure that the prioritized commu2 nities described in subsection (e)(2) have 

3 access to participate in that process. 

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

5 publicly available on a quarterly basis information 

6 relating to the expenditure of funds under the in7 vestment plan. 

8 (e) INVESTMENT TOOLS.— 

9 (1) DEFINITIONS.—In this subsection: 

10 (A) COMMUNITY OF COLOR.—The term 

11 ‘‘community of color’’ means a geographically 

12 distinct area in which the population of any of 

13 the following categories of individuals is higher 

14 than the average population of that category for 

15 the State in which the community is located: 

16 (i) Black. 

17 (ii) African American. 

18 (iii) Asian. 

19 (iv) Pacific Islander. 

20 (v) Other non-White race. 

21 (vi) Hispanic. 

22 (vii) Latino. 

23 (viii) Linguistically isolated. 

24 (B) ELIGIBLE BORROWER.—The term ‘‘eli25 gible borrower’’ means any person, including a 


ssavage on LAPJG3WLY3PROD with BILLS
13 

•S 5107 IS

1 business owner or project developer, that seeks 

2 a loan to carry out approved practices or 

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

4 paragraph (3) from an eligible lender that may 

5 receive a loan guarantee under that paragraph 

6 for that loan, according to criteria determined 

7 by the C2FC. 

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

9 entity’’ means— 

10 (i) a State; 

11 (ii) an Indian Tribe; 

12 (iii) a unit of local government; and 

13 (iv) a research and development insti14 tution (including a National Laboratory). 

15 (D) ELIGIBLE LENDER.—The term ‘‘eligi16 ble lender’’ means— 

17 (i) a Federal- or State-chartered 

18 bank; 

19 (ii) a Federal- or State-chartered 

20 credit union; 

21 (iii) an agricultural credit corporation; 

22 (iv) a United States Green Bank In23 stitution; 

24 (v) a community development finan25 cial institution (as defined in section 103 


ssavage on LAPJG3WLY3PROD with BILLS
14 

•S 5107 IS

1 of the Community Development Banking 

2 and Financial Institutions Act of 1994 (12 

3 U.S.C. 4702)); 

4 (vi) a minority depository institution 

5 (as defined in section 308(b) of the Finan6 cial Institutions Reform, Recovery, and 

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

8 note; Public Law 101–73)); and 

9 (vii) any other lender that the Board 

10 determines has a demonstrated ability to 

11 underwrite and service loans for the in12 tended approved practice for which the 

13 loan will be used. 

14 (E) ENVIRONMENTAL JUSTICE COMMU15 NITY.—The term ‘‘environmental justice com16 munity’’ means a community with significant 

17 representation of communities of color, low-in18 come communities, or Tribal and indigenous 

19 communities that experiences, or is at risk of 

20 experiencing, higher or more adverse human 

21 health or environmental effects. 

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

23 Tribe’’ has the meaning given the term in sec24 tion 4 of the Indian Self-Determination and 

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


ssavage on LAPJG3WLY3PROD with BILLS
15 

•S 5107 IS

1 (G) LOW-INCOME COMMUNITY.—The term 

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

3 block group in which 30 percent or more of the 

4 population are individuals with an annual 

5 household income equal to, or less than, the 

6 greater of— 

7 (i) an amount equal to 80 percent of 

8 the median income of the area in which the 

9 household is located, as reported by the 

10 Department of Housing and Urban Devel11 opment; and 

12 (ii) 200 percent of the Federal pov13 erty line. 

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

15 (i) a State; 

16 (ii) the District of Columbia; 

17 (iii) the Commonwealth of Puerto 

18 Rico; and 

19 (iv) any other territory or possession 

20 of the United States. 

21 (2) COMMUNITY PRIORITIZATION.—In providing 

22 financial investment and other assistance under 

23 paragraph (3), the C2FC shall give priority to, as 

24 determined by the C2FC— 


ssavage on LAPJG3WLY3PROD with BILLS
16 

•S 5107 IS

1 (A) environmental justice communities, 

2 communities of color, indigenous communities, 

3 rural communities, and low-income communities 

4 that— 

5 (i) experience a disproportionate bur6 den of the negative human health and en7 vironmental impacts of pollution or other 

8 environmental hazards, such as natural 

9 disasters; or 

10 (ii) may not have access to public in11 formation and opportunities for meaningful 

12 public participation relating to human 

13 health and environmental planning, regula14 tions, and enforcement; 

15 (B) deindustrialized communities or com16 munities with significant local economic reliance 

17 on carbon-intensive industries; 

18 (C) low-income communities at risk of im19 pacts of natural disasters or sea level rise exac20 erbated by climate change; 

21 (D) public or nonprofit entities that serve 

22 dislocated workers, veterans, or individuals with 

23 a barrier to employment; and 


ssavage on LAPJG3WLY3PROD with BILLS
17 

•S 5107 IS

1 (E) communities that have minimal or no 

2 investment in the approved practices and 

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

4 (3) GRANTS, LOAN GUARANTEES, AND OTHER

5 INVESTMENT TOOLS.— 

6 (A) IN GENERAL.—The C2FC— 

7 (i) shall provide grants to eligible enti8 ties and loan guarantees to eligible lenders 

9 issuing loans to eligible borrowers for ap10 proved practices and projects relating to 

11 climate change mitigation and resilience 

12 measures, including— 

13 (I) energy efficiency upgrades to 

14 infrastructure; 

15 (II) electric, hydrogen, and clean 

16 transportation programs and deploy17 ment, including programs— 

18 (aa) to purchase personal 

19 vehicles, commercial vehicles, and 

20 public transportation fleets and 

21 school bus fleets; 

22 (bb) to deploy electric vehi23 cle charging and hydrogen fuel24 ing infrastructure; and 


ssavage on LAPJG3WLY3PROD with BILLS
18 

•S 5107 IS

1 (cc) to develop and deploy 

2 sustainable aviation fuels; 

3 (III) clean energy and clean vehi4 cle manufacturing research, dem5 onstrations, and deployment, with a 

6 particular focus on projects relating to 

7 the commercialization of new tech8 nologies; 

9 (IV) battery storage research, 

10 demonstrations, and deployment; 

11 (V) development or purchase of 

12 equipment for practices described in 

13 section 6; 

14 (VI) development and deployment 

15 of clean energy and clean tech16 nologies, with a focus on— 

17 (aa) carbon capture, utiliza18 tion, and sequestration, bioenergy 

19 with carbon capture and seques20 tration, and direct air capture; 

21 (bb) energy storage and grid 

22 modernization; 

23 (cc) geothermal energy; 

24 (dd) commercial and resi25 dential solar; 


ssavage on LAPJG3WLY3PROD with BILLS
19 

•S 5107 IS

1 (ee) wind energy; and 

2 (ff) any other clean tech3 nology use or development, as de4 termined by the Board; 

5 (VII) measures that anticipate 

6 and prepare for climate change im7 pacts, and reduce risks and enhance 

8 resilience to sea level rise, extreme 

9 weather events, heat island impacts, 

10 and other climate change impacts, as 

11 determined by the Board, including 

12 by— 

13 (aa) building resilient en14 ergy, water, and transportation 

15 infrastructure; 

16 (bb) providing weatheriza17 tion assistance for low-income 

18 households; and 

19 (cc) increasing the physical 

20 and economic resilience of the ag21 riculture sector; and 

22 (VIII) natural infrastructure re23 search, demonstrations, and deploy24 ment; and 


ssavage on LAPJG3WLY3PROD with BILLS
20 

•S 5107 IS

1 (ii) may implement other investment 

2 tools and products approved by the Board, 

3 pursuant to subparagraph (C), to achieve 

4 the mission of the C2FC described in sub5 section (a)(2). 

6 (B) LOAN GUARANTEES.— 

7 (i) IN GENERAL.—In providing loan 

8 guarantees under subparagraph (A), the 

9 C2FC shall cooperate with eligible lenders 

10 through agreements to participate on a de11 ferred (guaranteed) basis. 

12 (ii) LEVEL OF PARTICIPATION IN

13 GUARANTEED LOANS.—In providing a loan 

14 guarantee under subparagraph (A), the 

15 C2FC shall guarantee 75 percent of the 

16 balance of the financing outstanding at the 

17 time of disbursement of the loan. 

18 (iii) INTEREST RATES.—Notwith19 standing the provisions of the constitution 

20 of any State or the laws of any State lim21 iting the rate or amount of interest that 

22 may be charged, taken, received, or re23 served, the maximum legal rate of interest 

24 on any financing made on a deferred basis 


ssavage on LAPJG3WLY3PROD with BILLS
21 

•S 5107 IS

1 under this subsection shall not exceed a 

2 rate prescribed by the C2FC. 

3 (iv) GUARANTEE FEES.— 

4 (I) IN GENERAL.—With respect 

5 to each loan guaranteed under this 

6 subsection (other than a loan that is 

7 repayable in 1 year or less), the C2FC 

8 shall collect a guarantee fee, which 

9 shall be payable by the eligible lender, 

10 and may be charged to the eligible 

11 borrower in accordance with subclause 

12 (II). 

13 (II) BORROWER CHARGES.—A 

14 guarantee fee described in subclause 

15 (I) charged to an eligible borrower 

16 shall not— 

17 (aa) exceed 2 percent of the 

18 deferred participation share of a 

19 total loan amount that is equal to 

20 or less than $150,000; 

21 (bb) exceed 3 percent of the 

22 deferred participation share of a 

23 total loan amount that is greater 

24 than $150,000 but less than 

25 $700,000; or 


ssavage on LAPJG3WLY3PROD with BILLS
22 

•S 5107 IS

1 (cc) exceed 3.5 percent of 

2 the deferred participation share 

3 of a total loan amount that is 

4 equal to or greater than 

5 $700,000. 

6 (C) OTHER INVESTMENT TOOLS AND

7 PRODUCTS.— 

8 (i) IN GENERAL.—The Board may, 

9 based on market needs, develop and imple10 ment any other investment tool or product 

11 necessary to achieve the mission of the 

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

13 the deployment of projects described in 

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

15 (I) warehousing and aggregation 

16 credit facilities; 

17 (II) zero interest loans; 

18 (III) credit enhancements; and 

19 (IV) construction finance. 

20 (ii) STATE AND LOCAL GREEN

21 BANKS.—The Board shall provide— 

22 (I) funds to United States Green 

23 Bank Institutions as necessary to fi24 nance projects that are best served by 

25 those entities; and 


ssavage on LAPJG3WLY3PROD with BILLS
23 

•S 5107 IS

1 (II) technical assistance as nec2 essary to States and localities seeking 

3 to establish green banks. 

4 (D) PROHIBITED INVESTMENTS.—The 

5 Board shall not issue loans, grants, or other6 wise invest in any activities that directly or in7 directly contradict the mission of the C2FC de8 scribed in subsection (a)(2). 

9 (4) WAGE RATE REQUIREMENTS.— 

10 (A) IN GENERAL.—All laborers and me11 chanics employed by eligible entities and eligible 

12 borrowers on projects funded directly by or as13 sisted in whole or in part by the activities of the 

14 C2FC under this section shall be paid at wages 

15 at rates not less than those prevailing on 

16 projects of a similar character in the locality as 

17 determined by the Secretary of Labor in ac18 cordance with subchapter IV of chapter 31 of 

19 title 40, United States Code (commonly known 

20 as the ‘‘Davis-Bacon Act’’). 

21 (B) AUTHORITY.—With respect to the 

22 labor standards specified in subparagraph (A), 

23 the Secretary of Labor shall have the authority 

24 and functions set forth in Reorganization Plan 

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


ssavage on LAPJG3WLY3PROD with BILLS
24 

•S 5107 IS

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

2 States Code. 

3 (5) BUY AMERICA REQUIREMENTS.— 

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

5 manufactured goods used for projects under 

6 this section shall be produced in the United 

7 States. 

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

9 requirement in subparagraph (A) if the Board 

10 finds that— 

11 (i) enforcing the requirement would be 

12 inconsistent with the public interest; 

13 (ii) the iron, steel, and manufactured 

14 goods produced in the United States are 

15 not produced in a sufficient and reasonably 

16 available amount or are not of a satisfac17 tory quality; or 

18 (iii) enforcing the requirement will in19 crease the overall cost of the project by 

20 more than 25 percent. 

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

22 2 years after the date of enactment of this Act, and every 

23 2 years thereafter, the Board shall— 

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

25 C2FC and identify projects and funding opportuniVerDate Sep 11 2014 01:01 Sep 26, 2024 Jkt 049200 PO 00000 Frm 00024 Fmt 6652 Sfmt 6201 E:\BILLS\S5107.IS S5107

ssavage on LAPJG3WLY3PROD with BILLS
25 

•S 5107 IS

1 ties that were a part of the current investment plan; 

2 and 

3 (2) submit to Congress and make publicly avail4 able a report that— 

5 (A) describes the projects and funding op6 portunities that have been most successful in 

7 progressing towards the mission described in 

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

9 by the report; 

10 (B) includes recommendations on the clean 

11 energy and resiliency projects that should be 

12 prioritized in forthcoming years to achieve that 

13 mission; 

14 (C) quantifies the total amount and per15 centage of funding given to prioritized commu16 nities described in subsection (e)(2); and 

17 (D) identifies barriers for disadvantaged 

18 groups to receive C2FC funding and provides 

19 recommendations to address those barriers. 

20 (g) INITIAL CAPITALIZATION.—There is appropriated 

21 to carry out this section (including for administrative costs 

22 of the C2FC), out of any funds in the Treasury not other23 wise appropriated, $7,500,000,000 for each of fiscal years 

24 2025 and 2026, to remain available until expended. 


ssavage on LAPJG3WLY3PROD with BILLS
26 

•S 5107 IS

1 SEC. 3. CARBON FEE. 

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

3 Internal Revenue Code of 1986 is amended by adding at 

4 the end the following new subchapter: 

5 ‘‘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. 

6 ‘‘SEC. 4691. DEFINITIONS. 

7 ‘‘For purposes of this subchapter— 

8 ‘‘(1) ADMINISTRATOR.—The term ‘Adminis9 trator’ means the Administrator of the Environ10 mental Protection Agency. 

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

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

13 means the number of metric tons of carbon dioxide 

14 emissions with the same global warming potential 

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

16 greenhouse gas. 

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

18 ‘carbon-intensive product’ means— 

19 ‘‘(A) iron, steel, steel mill products (includ20 ing pipe and tube), aluminum, cement, glass 

21 (including flat, container, and specialty glass 

22 and fiberglass), pulp, paper, chemicals, or in23 dustrial ceramics, and 


ssavage on LAPJG3WLY3PROD with BILLS
27 

•S 5107 IS

1 ‘‘(B) any manufactured product which the 

2 Secretary, in consultation with the Adminis3 trator, the Secretary of Commerce, and the Sec4 retary of Energy, determines is energy-intensive 

5 and trade-exposed (with the exception of any 

6 covered fuel). 

7 ‘‘(4) COVERED ENTITY.—The term ‘covered en8 tity’ means— 

9 ‘‘(A) in the case of crude oil— 

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

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

12 of section 4611), and 

13 ‘‘(ii) any person entering such product 

14 into the United States for consumption, 

15 use, or warehousing (as described in sub16 section (d)(2) of such section), 

17 ‘‘(B) in the case of coal— 

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

19 under section 4121, and 

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

21 United States, 

22 ‘‘(C) in the case of natural gas— 

23 ‘‘(i) any entity which produces natural 

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


ssavage on LAPJG3WLY3PROD with BILLS
28 

•S 5107 IS

1 from a well located in the United States, 

2 and 

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

4 the United States, 

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

6 emissions, the entity which is the source of such 

7 emissions, provided that the total amount of 

8 carbon dioxide or methane emitted by such enti9 ty for the preceding year (as determined using 

10 the methodology required under section 

11 4692(e)(4)) was not less than 25,000 metric 

12 tons, and 

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

14 as determined by the Secretary, is transporting, 

15 selling, or otherwise using a covered fuel in a 

16 manner which emits a greenhouse gas into the 

17 atmosphere and which has not been covered by 

18 the carbon fee, the fee on noncovered fuel emis19 sions, or the carbon border fee adjustment. 

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

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

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

23 which shall be used so as to emit greenhouse gases 

24 to the atmosphere. 


ssavage on LAPJG3WLY3PROD with BILLS
29 

•S 5107 IS

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

2 gas’— 

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

4 section 901 of the Energy Independence and 

5 Security Act of 2007 (42 U.S.C. 17321), as in 

6 effect on the date of the enactment of the 

7 America’s Clean Future Fund Act, and 

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

9 rule of the Administrator. 

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

11 ‘greenhouse gas content’ means the amount of 

12 greenhouse gases, expressed in metric tons of CO2- 

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

14 use of a covered fuel. 

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

16 ‘noncovered fuel emission’ means any carbon dioxide 

17 or methane emitted as a result of the production, 

18 processing, transport, or use of any product or mate19 rial within the energy or industrial sectors— 

20 ‘‘(A) including any fugitive or process 

21 emissions associated with the production, proc22 essing, or transport of a covered fuel, and 

23 ‘‘(B) excluding any emissions from the 

24 combustion or use of a covered fuel. 


ssavage on LAPJG3WLY3PROD with BILLS
30 

•S 5107 IS

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

2 ‘qualified carbon oxide’ has the meaning given the 

3 term in section 45Q(c). 

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

5 States’ shall be treated as including each possession 

6 of the United States (including the Commonwealth 

7 of Puerto Rico and the Commonwealth of the North8 ern Mariana Islands). 

9 ‘‘SEC. 4692. CARBON FEE. 

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

11 ‘‘(1) APPLICABLE PERIOD.—The term ‘applica12 ble period’ means, with respect to any determination 

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

14 any calendar year, the period— 

15 ‘‘(A) beginning on January 1, 2026, and 

16 ‘‘(B) ending on December 31 of the pre17 ceding calendar year. 

18 ‘‘(2) CUMULATIVE EMISSIONS.—The term ‘cu19 mulative emissions’ means an amount equal to the 

20 sum of any greenhouse gas emissions resulting from 

21 the use of covered fuels and any noncovered fuel 

22 emissions for all years during the applicable period. 

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

24 term ‘cumulative emissions target’ means an amount 


ssavage on LAPJG3WLY3PROD with BILLS
31 

•S 5107 IS

1 equal to the sum of the emissions targets for all 

2 years during the applicable period. 

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

4 target’ means the target for greenhouse gas emis5 sions during a calendar year as determined under 

6 subsection (e)(1). 

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

8 begins after December 31, 2025, there is imposed a car9 bon fee on any covered entity’s use, sale, or transfer of 

10 any covered fuel. 

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

12 imposed by this section is an amount equal to— 

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

14 fuel, multiplied by 

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

16 subsection (d). 

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

18 be determined in accordance with the following: 

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

20 respect to any use, sale, or transfer during a cal21 endar year, shall be— 

22 ‘‘(A) in the case of calendar year 2026, 

23 $65, and 


ssavage on LAPJG3WLY3PROD with BILLS
32 

•S 5107 IS

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

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

3 2026, the amount equal to the sum of— 

4 ‘‘(i) the amount under subparagraph 

5 (A), plus 

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

7 2027, $10, and 

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

9 after 2027, the amount in effect under this 

10 clause for the preceding calendar year, plus 

11 $10. 

12 ‘‘(2) INFLATION ADJUSTMENT.— 

13 ‘‘(A) IN GENERAL.—In the case of any cal14 endar year after 2026, the amount determined 

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

16 an amount equal to— 

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

18 ‘‘(ii) the cost-of-living adjustment de19 termined under section 1(f)(3) for that cal20 endar year, determined by substituting 

21 ‘2025’ for ‘2016’ in subparagraph (A)(ii) 

22 thereof. 

23 ‘‘(B) ROUNDING.—If any increase deter24 mined under subparagraph (A) is not a multiple 


ssavage on LAPJG3WLY3PROD with BILLS
33 

•S 5107 IS

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

2 next whole dollar amount. 

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

4 ‘‘(A) INCREASE IN RATE FOLLOWING

5 MISSED CUMULATIVE EMISSIONS TARGET.—In 

6 the case of any calendar year following a deter7 mination by the Secretary pursuant to sub8 section (e)(3) that the cumulative emissions for 

9 the preceding calendar year exceeded the cumu10 lative emissions target for such year, paragraph 

11 (1)(B)(ii)(II) shall be applied— 

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

13 2029 through 2033, by substituting ‘$15’ 

14 for ‘$10’, 

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

16 2034 through 2043, by substituting ‘$20’ 

17 for ‘$10’, and 

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

19 beginning after 2043, by substituting ‘$25’ 

20 for ‘$10’. 

21 ‘‘(B) CESSATION OF RATE INCREASE FOL22 LOWING ACHIEVEMENT OF CUMULATIVE EMIS23 SIONS TARGET.—In the case of any year fol24 lowing a determination by the Secretary pursu25 ant to subsection (e)(3) that— 


ssavage on LAPJG3WLY3PROD with BILLS
34 

•S 5107 IS

1 ‘‘(i) the average annual emissions of 

2 greenhouse gases from covered entities 

3 over the preceding 3-year period are not 

4 more than 10 percent of the greenhouse 

5 gas emissions during the year 2018, and 

6 ‘‘(ii) the cumulative emissions did not 

7 exceed the cumulative emissions target, 

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

9 substituting ‘$0’ for ‘$10’. 

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

11 any year, the annual greenhouse gas emissions 

12 and cumulative emissions described in subpara13 graph (A) or (B) shall be determined using the 

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

15 ‘‘(e) EMISSIONS TARGETS.— 

16 ‘‘(1) IN GENERAL.— 

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

18 subsection (d), the emissions target for any 

19 year shall be the amount of greenhouse gas 

20 emissions that is equal to— 

21 ‘‘(i) for calendar years 2026 and 

22 2027, the applicable percentage of the total 

23 amount of greenhouse gas emissions from 

24 the use of any covered fuel during calendar 

25 year 2018, and 


ssavage on LAPJG3WLY3PROD with BILLS
35 

•S 5107 IS

1 ‘‘(ii) for calendar year 2028 and each 

2 calendar year thereafter, the applicable 

3 percentage of the total amount of green4 house gas emissions from the use of any 

5 covered fuel and noncovered fuel emissions 

6 during calendar year 2018. 

7 ‘‘(B) METHODOLOGY.—For purposes of 

8 subparagraph (A), with respect to determining 

9 the total amount of greenhouse gas emissions 

10 from the use of any covered fuel and non11 covered fuel emissions during calendar year 

12 2018, the Administrator shall use such methods 

13 as are determined appropriate, provided that 

14 such methods are, to the greatest extent prac15 ticable, comparable to the methods established 

16 under paragraph (4). 

17 ‘‘(2) APPLICABLE PERCENTAGE.— 

18 ‘‘(A) 2026 THROUGH 2035.—In the case 

19 of calendar years 2026 through 2035, the appli20 cable percentage shall be determined as follows: 

‘‘Year Applicable percentage 

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

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

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

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

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

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

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

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

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

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


ssavage on LAPJG3WLY3PROD with BILLS
36 

•S 5107 IS

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

2 of calendar years 2036 through 2050, the appli3 cable 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, 2027, 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. 

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

23 September 30, 2028, and annually thereafter, 

24 the Administrator, in consultation with the Sec25 retary and as part of the report described in 


ssavage on LAPJG3WLY3PROD with BILLS
37 

•S 5107 IS

1 subparagraph (A), shall determine whether cu2 mulative emissions with respect to the pre3 ceding calendar year exceeded the cumulative 

4 emissions target with respect to such year. 

5 ‘‘(4) EMISSIONS ACCOUNTING METHOD6 OLOGY.— 

7 ‘‘(A) IN GENERAL.—Not later than Janu8 ary 1, 2026, the Administrator shall prescribe 

9 rules for greenhouse gas accounting for covered 

10 entities for purposes of this subchapter, which 

11 shall— 

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

13 employ existing data collection methodolo14 gies and greenhouse gas accounting prac15 tices, including such methodologies and 

16 practices developed by the National Lab17 oratories (as defined in section 2 of the 

18 Energy Policy Act of 2005 (42 U.S.C. 

19 15801)), 

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

22 ‘‘(I) applies to— 

23 ‘‘(aa) all greenhouse gas 

24 emissions from covered fuels and 


ssavage on LAPJG3WLY3PROD with BILLS
38 

•S 5107 IS

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— 


ssavage on LAPJG3WLY3PROD with BILLS
39 

•S 5107 IS

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 


ssavage on LAPJG3WLY3PROD with BILLS
40 

•S 5107 IS

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 01:01 Sep 26, 2024 Jkt 049200 PO 00000 Frm 00040 Fmt 6652 Sfmt 6201 E:\BILLS\S5107.IS S5107

ssavage on LAPJG3WLY3PROD with BILLS
41 

•S 5107 IS

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, 2027, 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. 


ssavage on LAPJG3WLY3PROD with BILLS
42 

•S 5107 IS

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— 


ssavage on LAPJG3WLY3PROD with BILLS
43 

•S 5107 IS

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 01:01 Sep 26, 2024 Jkt 049200 PO 00000 Frm 00043 Fmt 6652 Sfmt 6201 E:\BILLS\S5107.IS S5107

ssavage on LAPJG3WLY3PROD with BILLS
44 

•S 5107 IS

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.— 

6 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

7 the Secretary, in consultation with Administrator 

8 and the Secretary of Energy, shall, through regula9 tion or other public guidance, determine which uses 

10 of qualified carbon oxide are eligible for payments 

11 under this section, which may include— 

12 ‘‘(A) utilization in a manner described in 

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

14 ‘‘(B) any other use which ensures minimal 

15 leakage or escape of such carbon oxide. 

16 ‘‘(2) EXCLUSION FOR ENHANCED OIL OR NAT17 URAL GAS RECOVERY.—The sale or use of qualified 

18 carbon oxide as a tertiary injectant in a qualified en19 hanced oil or natural gas recovery project (as de20 fined in section 45Q(e)(4)) shall not be eligible for 

21 payments under this section. 

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

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

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

25 quality regulations, or 


ssavage on LAPJG3WLY3PROD with BILLS
45 

•S 5107 IS

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

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

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

4 or environmental harm to such community, 

5 such facility shall not be eligible for any payment 

6 under this section during the period of such viola7 tion. 

8 ‘‘SEC. 4695. BORDER ADJUSTMENTS. 

9 ‘‘(a) IN GENERAL.—The fees imposed by, and re10 funds allowed under, this section shall be referred to as 

11 ‘the carbon border fee adjustment’. 

12 ‘‘(b) EXPORTS.— 

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

14 case of any carbon-intensive product which is ex15 ported from the United States, the Secretary shall 

16 pay to the person exporting such product a refund 

17 equal to the amount of the cost of such product at18 tributable to any fees imposed under this subchapter 

19 related to the manufacturing of such product (as de20 termined under regulations established by the Sec21 retary). 

22 ‘‘(2) COVERED FUELS.—In the case of any cov23 ered fuel which is exported from the United States, 

24 the Secretary shall pay to the person exporting such 

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


ssavage on LAPJG3WLY3PROD with BILLS
46 

•S 5107 IS

1 fuel attributable to any fees imposed under this sub2 chapter related to the use, sale, or transfer of such 

3 fuel. 

4 ‘‘(c) IMPORTS.— 

5 ‘‘(1) CARBON-INTENSIVE PRODUCTS.— 

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

7 In the case of any carbon-intensive product im8 ported into the United States, there is imposed 

9 an equivalency fee on the person importing such 

10 product in an amount equal to the cost of such 

11 product that would be attributable to any fees 

12 imposed under this subchapter related to the 

13 manufacturing of such product if any inputs or 

14 processes used in manufacturing such product 

15 were subject to such fees (as determined under 

16 regulations established by the Secretary). 

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

18 the equivalency fee under subparagraph (A) 

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

20 fees imposed on the carbon-intensive product by 

21 the foreign nation or governmental units from 

22 which such product was imported. 

23 ‘‘(2) COVERED FUELS.— 

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

25 covered fuel imported into the United States, 


ssavage on LAPJG3WLY3PROD with BILLS
47 

•S 5107 IS

1 there is imposed an equivalency fee on the per2 son importing such fuel in an amount equal to 

3 the amount of any fees that would be imposed 

4 under this subchapter related to the use, sale, 

5 or transfer of such fuel. 

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

7 the fee under subparagraph (A) shall be re8 duced by the amount, if any, of any fees im9 posed on the covered fuel by the foreign nation 

10 or governmental units from which the fuel was 

11 imported. 

12 ‘‘(d) TREATMENT OF ALTERNATIVE POLICIES AS

13 FEES.—Under regulations established by the Secretary, 

14 foreign policies that have substantially the same effect in 

15 reducing emissions of greenhouse gases as fees shall be 

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

17 ‘‘(e) REGULATORY AUTHORITY.— 

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

19 with the Administrator, the Secretary of Commerce, 

20 and the Secretary of Energy in establishing rules 

21 and regulations implementing the purposes of this 

22 section. 

23 ‘‘(2) TREATIES.—The Secretary, in consulta24 tion with the Secretary of State, may adjust the ap25 plicable amounts of the refunds and equivalency fees 


ssavage on LAPJG3WLY3PROD with BILLS
48 

•S 5107 IS

1 under this section in a manner that is consistent 

2 with any obligations of the United States under an 

3 international agreement.’’. 

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

5 this section shall apply to periods beginning after Decem6 ber 31, 2025. 

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

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

9 Internal Revenue Code of 1986 is amended by adding at 

10 the end the following: 

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

12 ‘‘(a) ESTABLISHMENT AND FUNDING.—There is es13 tablished in the Treasury of the United States a trust fund 

14 to be known as the ‘America’s Clean Future Fund’ (re15 ferred to in this section as the ‘Trust Fund’), consisting 

16 of such amounts as are appropriated to the Trust Fund 

17 under subsection (b). 

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

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

20 any funds in the Treasury not otherwise appropriated, 

21 amounts equal to the fees received into the Treasury 

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

23 ‘‘(1) any amounts refunded or paid under sec24 tions 4692(d), 4694, and 4695(b), and 


ssavage on LAPJG3WLY3PROD with BILLS
49 

•S 5107 IS

1 ‘‘(2) for each of the first 18 fiscal years begin2 ning after September 30, 2026, an amount equal to 

3 the quotient of— 

4 ‘‘(A) $100,000,000,000, and 

5 ‘‘(B) 18. 

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

7 in the Trust Fund shall be apportioned as follows: 

8 ‘‘(1) CARBON FEE REBATE AND AGRICULTURAL

9 DECARBONIZATION TRANSITION PAYMENTS.— 

10 ‘‘(A) CARBON FEE REBATE.—For the pur11 poses described in section 5 of the America’s 

12 Clean Future Fund Act and any expenses nec13 essary to administer such section— 

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

15 years beginning after September 30, 2026, 

16 an amount equal to— 

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

18 minus 

19 ‘‘(II) the amount determined 

20 under subparagraph (B) for such fis21 cal year, and 

22 ‘‘(ii) for any fiscal year beginning 

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

24 applicable percentage of such amounts. 


ssavage on LAPJG3WLY3PROD with BILLS
50 

•S 5107 IS

1 ‘‘(B) AGRICULTURAL DECARBONIZATION

2 TRANSITION PAYMENTS.—For the purposes de3 scribed in section 6 of the America’s Clean Fu4 ture Fund Act, for each of the first 10 fiscal 

5 years beginning after September 30, 2026, an 

6 amount equal to 7 percent of the amount deter7 mined annually under subparagraph (A)(i)(I). 

8 ‘‘(C) APPLICABLE PERCENTAGE.—For 

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

10 percentage shall be equal to— 

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

12 after the period described in subparagraph 

13 (A)(i), 76 percent, 

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

15 subsequent to the period described in 

16 clause (i), the applicable percentage for the 

17 preceding fiscal year increased by 1 per18 centage point, and 

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

20 the period described in clause (ii), 80 per21 cent. 

22 ‘‘(2) CLIMATE CHANGE FINANCE CORPORA23 TION.— 

24 ‘‘(A) IN GENERAL.—For the purposes de25 scribed in section 2 of the America’s Clean FuVerDate Sep 11 2014 01:01 Sep 26, 2024 Jkt 049200 PO 00000 Frm 00050 Fmt 6652 Sfmt 6201 E:\BILLS\S5107.IS S5107

ssavage on LAPJG3WLY3PROD with BILLS
51 

•S 5107 IS

1 ture Fund Act (including any expenses nec2 essary to administer such section), the applica3 ble percentage of such amounts. 

4 ‘‘(B) APPLICABLE PERCENTAGE.—For 

5 purposes of this paragraph, the applicable per6 centage shall be equal to— 

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

8 years beginning after the period described 

9 in subsection (e) of such section, 15 per10 cent, 

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

12 subsequent to the period described in 

13 clause (i), the applicable percentage for the 

14 preceding fiscal year increased by 1 per15 centage point, and 

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

17 the period described in clause (ii), 20 per18 cent. 

19 ‘‘(3) TRANSITION ASSISTANCE FOR IMPACTED

20 COMMUNITIES.— 

21 ‘‘(A) IN GENERAL.—For the purposes de22 scribed in section 7 of the America’s Clean Fu23 ture Fund Act (including any expenses nec24 essary to administer such section), the applica25 ble percentage of such amounts. 


ssavage on LAPJG3WLY3PROD with BILLS
52 

•S 5107 IS

1 ‘‘(B) APPLICABLE PERCENTAGE.—For 

2 purposes of this paragraph, the applicable per3 centage shall be equal to— 

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

5 years beginning after September 30, 2026, 

6 10 percent, 

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

8 subsequent to the period described in 

9 clause (i), the applicable percentage for the 

10 preceding fiscal year reduced by 2 percent11 age points, and 

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

13 the period described in clause (ii), 0 per14 cent.’’. 

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

16 for subchapter A of chapter 98 of the Internal Revenue 

17 Code of 1986 is amended by adding at the end the fol18 lowing new item: 

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

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

20 (a) ELIGIBLE INDIVIDUAL.— 

21 (1) IN GENERAL.—In this section, the term ‘‘el22 igible individual’’ means, with respect to any quar23 ter, any natural living person— 

24 (A) who has a valid Social Security num25 ber or taxpayer identification number, 


ssavage on LAPJG3WLY3PROD with BILLS
53 

•S 5107 IS

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

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

3 United States for more than one-half of the 

4 most recent taxable year for which a return has 

5 been filed. 

6 (2) VERIFICATION.—The Secretary of the 

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

8 this section as the ‘‘Secretary’’) may verify the eligi9 bility of an individual to receive a carbon fee rebate 

10 payment under subsection (b). 

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

12 from amounts in the America’s Clean Future Fund estab13 lished by section 9512(c)(1)(A) of the Internal Revenue 

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

15 shall, for each calendar quarter beginning after September 

16 30, 2026, make carbon fee rebate payments to each eligi17 ble individual, to be known as ‘‘America’s Clean Future 

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

19 ‘‘carbon fee rebate payments’’). 

20 (c) PRO-RATA SHARE.— 

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

22 during any fiscal year beginning after September 30, 

23 2026, the carbon fee rebate payment is 1 pro-rata 

24 share for each eligible individual of an amount equal 

25 to 25 percent of amounts apportioned under section 


ssavage on LAPJG3WLY3PROD with BILLS
54 

•S 5107 IS

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

2 for such fiscal year. 

3 (2) INITIAL ANNUAL REBATE PAYMENTS.— 

4 (A) IN GENERAL.—From amounts appro5 priated under subsection (j), the Secretary 

6 shall, for each of fiscal years 2025 and 2026, 

7 make carbon fee rebate payments to each eligi8 ble individual during the third quarter of each 

9 such fiscal year. 

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

11 this paragraph, the carbon fee rebate payment 

12 is 1 pro-rata share for each eligible individual 

13 of the amount appropriated under subsection (j) 

14 for the fiscal year. 

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

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

17 the first day of such fiscal year, publicly announce 

18 an estimate of the amount of the carbon fee rebate 

19 payment for each quarter during such fiscal year. 

20 (d) PHASEOUT.— 

21 (1) DEFINITIONS.—In this subsection: 

22 (A) MODIFIED ADJUSTED GROSS IN23 COME.—The term ‘‘modified adjusted gross in24 come’’ means adjusted gross income increased 

25 by any amount excluded from gross income 


ssavage on LAPJG3WLY3PROD with BILLS
55 

•S 5107 IS

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

2 Revenue Code of 1986. 

3 (B) HOUSEHOLD MEMBER.—The term 

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

5 taxpayer, the taxpayer’s spouse, and any de6 pendent of the taxpayer. 

7 (C) THRESHOLD AMOUNT.—The term 

8 ‘‘threshold amount’’ means— 

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

10 filing a joint return, and 

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

12 not filing a joint return. 

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

14 any taxpayer whose modified adjusted gross income 

15 for the most recent taxable year for which a return 

16 has been filed exceeds the threshold amount, the 

17 amount of the carbon fee rebate payment otherwise 

18 payable to any household member of the taxpayer 

19 under this section shall be reduced (but not below 

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

21 payment (as determined before application of this 

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

23 which the modified adjusted gross income of the tax24 payer exceeds the threshold amount. 


ssavage on LAPJG3WLY3PROD with BILLS
56 

•S 5107 IS

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

2 under this section shall not be includible in gross income 

3 for purposes of Federal income taxes. 

4 (f) FEDERAL PROGRAMS AND FEDERAL ASSISTED

5 PROGRAMS.—The carbon fee rebate payment received by 

6 any eligible individual shall not be taken into account as 

7 income and shall not be taken into account as resources 

8 for purposes of determining the eligibility of such indi9 vidual or any other individual for benefits or assistance, 

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

11 any Federal program or under any State or local program 

12 financed in whole or in part with Federal funds. 

13 (g) DISCLOSURE OF RETURN INFORMATION.—Sec14 tion 6103(l) of the Internal Revenue Code of 1986 is 

15 amended by adding at the end the following new para16 graph: 

17 ‘‘(23) DISCLOSURE OF RETURN INFORMATION

18 RELATING TO CARBON FEE REBATE PAYMENTS.— 

19 ‘‘(A) DEPARTMENT OF TREASURY.—Re20 turn information with respect to any taxpayer 

21 shall, without written request, be open to in22 spection by or disclosure to officers and employ23 ees of the Department of the Treasury whose 

24 official duties require such inspection or discloVerDate Sep 11 2014 01:01 Sep 26, 2024 Jkt 049200 PO 00000 Frm 00056 Fmt 6652 Sfmt 6201 E:\BILLS\S5107.IS S5107

ssavage on LAPJG3WLY3PROD with BILLS
57 

•S 5107 IS

1 sure for purposes of administering section 5 of 

2 the America’s Clean Future Fund Act. 

3 ‘‘(B) RESTRICTION ON DISCLOSURE.—In4 formation disclosed under this paragraph shall 

5 be disclosed only for purposes of, and to the ex6 tent necessary in, carrying out such section.’’. 

7 (h) REGULATIONS.—The Secretary shall prescribe 

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

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

10 (1) establishment of rules for eligible individ11 uals who have not filed a recent tax return, and 

12 (2) in coordination with the Commissioner of 

13 Social Security, the Secretary of Veterans Affairs, 

14 and any relevant State agencies, establish methods 

15 to identify eligible individuals and provide carbon fee 

16 rebate payments to such individuals through appro17 priate means of distribution, including through the 

18 use of electronic benefit transfer cards. 

19 (i) PUBLIC AWARENESS CAMPAIGN.—The Secretary 

20 shall conduct a public awareness campaign, in coordina21 tion with the Commissioner of Social Security, the heads 

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

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

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


ssavage on LAPJG3WLY3PROD with BILLS
58 

•S 5107 IS

1 information to the public regarding the availability of car2 bon fee rebate payments under this section. 

3 (j) INITIAL APPROPRIATION.—For purposes of sub4 section (c)(2), there is appropriated, out of any funds in 

5 the Treasury not otherwise appropriated, to remain avail6 able until expended— 

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

8 2025, $37,500,000,000, and 

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

10 2026, $37,500,000,000. 

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

12 any calendar quarter beginning after— 

13 (1) a determination by the Secretary under sec14 tion 4692(d)(3)(B) of the Internal Revenue Code of 

15 1986; or 

16 (2) any period of 8 consecutive calendar quar17 ters for which the amount of carbon fee rebate pay18 ment (without application of subsection (d)) during 

19 each such quarter is less than $20. 

20 SEC. 6. AGRICULTURAL DECARBONIZATION TRANSITION 

21 PAYMENTS. 

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

23 (1) to provide transition assistance to eligible 

24 producers in the agricultural sector to prepare for 


ssavage on LAPJG3WLY3PROD with BILLS
59 

•S 5107 IS

1 and facilitate entry into greenhouse gas credit mar2 kets; and 

3 (2) to provide for the collection and reporting 

4 of data under subsection (d). 

5 (b) DEFINITIONS.—In this section: 

6 (1) ELIGIBLE LAND.—The term ‘‘eligible land’’ 

7 means land in the United States, including terri8 tories of the United States and Indian land (as de9 fined in section 2601 of the Energy Policy Act of 

10 1992 (25 U.S.C. 3501)), that has a cropping or live11 stock history during each of the 3 years preceding 

12 the date on which a payment is provided under the 

13 program with respect to the land, as determined by 

14 the Secretary. 

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

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

17 (A) is an owner, operator, or tenant of eli18 gible land; and 

19 (B) has the ability to enter into an agree20 ment with the Secretary to carry out qualifying 

21 actions described in subsection (c)(2) under the 

22 program. 

23 (3) GREENHOUSE GAS EMISSIONS REDUC24 TION.—The term ‘‘greenhouse gas emissions reduc25 tion’’ means the reduction in greenhouse gas emisVerDate Sep 11 2014 01:01 Sep 26, 2024 Jkt 049200 PO 00000 Frm 00059 Fmt 6652 Sfmt 6201 E:\BILLS\S5107.IS S5107

ssavage on LAPJG3WLY3PROD with BILLS
60 

•S 5107 IS

1 sions as a result of the adoption of qualifying ac2 tions described in subsection (c)(2), as compared to 

3 an historical baseline. 

4 (4) PROGRAM.—The term ‘‘program’’ means 

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

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

7 the Secretary of Agriculture. 

8 (6) TRADITIONALLY UNDERSERVED.—The term 

9 ‘‘traditionally underserved’’, with respect to an eligi10 ble producer, means that the eligible producer— 

11 (A) has been socially or economically dis12 advantaged by previous discriminatory laws or 

13 policies based on race, ethnicity, or disability; 

14 (B) is new to agriculture, as determined by 

15 the Secretary; 

16 (C)(i) has served in the United States 

17 Armed Forces; and 

18 (ii)(I) has not operated an agriculture op19 eration; 

20 (II) is new to agriculture, as determined by 

21 the Secretary; or 

22 (III) first obtained veteran status during 

23 the previous 5-year period; 

24 (D) is an owner, operator, or tenant of a 

25 limited resource agriculture operation; or 


ssavage on LAPJG3WLY3PROD with BILLS
61 

•S 5107 IS

1 (E) has a household income not greater 

2 than the national poverty level. 

3 (c) ESTABLISHMENT OF PROGRAM.— 

4 (1) IN GENERAL.—The Secretary shall establish 

5 a program to provide payments to eligible producers 

6 that will assist with reducing greenhouse gas emis7 sions through the adoption of qualifying actions de8 scribed in paragraph (2). 

9 (2) QUALIFYING ACTIONS.— 

10 (A) IN GENERAL.—The Secretary shall de11 termine actions that qualify for payments under 

12 the program. 

13 (B) REQUIREMENTS.—To be a qualifying 

14 action under subparagraph (A), an action shall 

15 be— 

16 (i) a climate-smart practice, includ17 ing— 

18 (I) a practice determined by a 

19 land-grant college or university (as de20 fined in section 1404 of the National 

21 Agricultural Research, Extension, and 

22 Teaching Policy Act of 1977 (7 

23 U.S.C. 3103)); or 

24 (II) climate-smart energy genera25 tion, fueling, or efficiency; and 


ssavage on LAPJG3WLY3PROD with BILLS
62 

•S 5107 IS

1 (ii) measurable, reportable, and 

2 verifiable for reducing greenhouse gas 

3 emissions, as determined by the Secretary. 

4 (3) CONSIDERATIONS.—In determining the rate 

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

6 Secretary shall consider— 

7 (A) the degree of additionality of the 

8 greenhouse gas emissions reduction; 

9 (B) whether the recipient of the payment 

10 was an early adopter of 1 or more practices 

11 that reduce greenhouse gas emissions; 

12 (C) the likelihood that the applicable quali13 fying action described in paragraph (2) would 

14 have been carried out absent the provision of 

15 the payment; 

16 (D) the degree of transitionality or perma17 nence of the greenhouse gas emissions reduc18 tion; 

19 (E) whether the applicable qualifying ac20 tion described in paragraph (2) provides mul21 tiple environmental and health co-benefits in 

22 addition to reduced greenhouse gas emissions; 

23 (F) the degree to which the recipient of the 

24 payment is a traditionally underserved eligible 

25 producer; 


ssavage on LAPJG3WLY3PROD with BILLS
63 

•S 5107 IS

1 (G) the integration with and enhancement 

2 of payments and policies of similar Federal, 

3 State, or local programs; and 

4 (H) any payments received, or to be re5 ceived, by the applicable eligible producer from 

6 a similar Federal, State, or local program for 

7 applicable qualifying actions described in para8 graph (2). 

9 (4) INELIGIBILITY.—A person that is deter10 mined to be in violation of any applicable water or 

11 air quality regulation, including under the Federal 

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

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

14 any payment under paragraph (1) during the period 

15 of the violation. 

16 (5) EFFECTIVENESS.—The authority to provide 

17 payments under this subsection shall be effective for 

18 each of the first 10 fiscal years beginning after Sep19 tember 30, 2025. 

20 (d) COLLECTION OF DATA AND REPORTING.— 

21 (1) MEASUREMENT SYSTEM.—The Secretary 

22 shall use an outcomes-based measurement system 

23 that uses the best available science and technology 

24 for cost-effective recordkeeping, modeling, and measVerDate Sep 11 2014 01:01 Sep 26, 2024 Jkt 049200 PO 00000 Frm 00063 Fmt 6652 Sfmt 6201 E:\BILLS\S5107.IS S5107

ssavage on LAPJG3WLY3PROD with BILLS
64 

•S 5107 IS

1 urement of farm-level greenhouse gas emissions on 

2 eligible land enrolled in the program. 

3 (2) INVENTORY.— 

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

5 providing payments under the program, the 

6 Secretary shall conduct a nationwide soil health 

7 and agricultural greenhouse gas emissions in8 ventory that uses the best available science and 

9 data to establish baselines and expected average 

10 performance for soil carbon drawdown and stor11 age and greenhouse gas emissions reduction by 

12 primary production type and production region. 

13 (B) DATABASE.—The Secretary shall— 

14 (i) establish an accessible and inter15 operable database for the inventory estab16 lished under subparagraph (A) using the 

17 measurement system established under 

18 paragraph (1); and 

19 (ii) improve and update the database 

20 as new data is collected, but not less fre21 quently than once every 2 years. 

22 (3) CRITERIA.— 

23 (A) IN GENERAL.—The Secretary shall es24 tablish criteria for payments under the program 


ssavage on LAPJG3WLY3PROD with BILLS
65 

•S 5107 IS

1 to inform policy and markets established to pro2 mote greenhouse gas emissions reductions. 

3 (B) REQUIREMENTS.—The criteria estab4 lished under subparagraph (A) shall— 

5 (i) have a documented likelihood of 

6 providing long-term net greenhouse gas 

7 emissions reductions, according to the best 

8 available science; 

9 (ii) be based in part on environmental 

10 impact modeling of the changes of shifting 

11 from baseline practices to new or improved 

12 practices; and 

13 (iii) prevent, to the maximum extent 

14 practicable, the degradation of other nat15 ural resource or environmental conditions. 

16 (4) MEASUREMENT, REPORTING, MONITORING, 

17 AND VERIFICATION SERVICES.— 

18 (A) IN GENERAL.—The Secretary— 

19 (i) shall provide services described in 

20 subparagraph (B) to eligible producers 

21 participating in the program; and 

22 (ii) may approve and provide oversight 

23 of 1 or more third-party agents to provide 

24 services described in subparagraph (B) to 


ssavage on LAPJG3WLY3PROD with BILLS
66 

•S 5107 IS

1 eligible producers participating in the pro2 gram. 

3 (B) SERVICES DESCRIBED.—Services re4 ferred to in subparagraph (A) are determining 

5 the greenhouse gas emissions reduction by— 

6 (i) measurement; 

7 (ii) reporting; 

8 (iii) monitoring; and 

9 (iv) verification. 

10 (C) USE OF PROTOCOLS.—Services re11 ferred to in subparagraph (A) shall be provided 

12 using— 

13 (i) the measurement system described 

14 in paragraph (1); and 

15 (ii) the criteria described in paragraph 

16 (3). 

17 (D) PRIVACY AND DATA SECURITY.— 

18 (i) IN GENERAL.—The Secretary shall 

19 establish— 

20 (I) safeguards to protect the pri21 vacy of information that is submitted 

22 through or retained by a third-party 

23 agent approved under subparagraph 

24 (A), including employees and contrac25 tors of the third-party agent; and 


ssavage on LAPJG3WLY3PROD with BILLS
67 

•S 5107 IS

1 (II) such other rules and stand2 ards of data security as the Secretary 

3 determines to be appropriate to carry 

4 out this subsection. 

5 (ii) PENALTIES.—The Secretary shall 

6 establish penalties for any violations of pri7 vacy or confidentiality under clause (i). 

8 (E) DISCLOSURE OF INFORMATION.— 

9 (i) PUBLIC DISCLOSURE.—Informa10 tion collected for purposes of services pro11 vided under subparagraph (A) may be dis12 closed to the public— 

13 (I) if the information is trans14 formed into a statistical or aggregate 

15 form such that the information does 

16 not include any identifiable or per17 sonal information of individual pro18 ducers; or 

19 (II) in a form that may include 

20 identifiable or personal information of 

21 a producer only if that producer con22 sents to the disclosure of the informa23 tion. 

24 (ii) RESEARCH, AUDIT, AND PROGRAM

25 IMPROVEMENT.—Information collected for 


ssavage on LAPJG3WLY3PROD with BILLS
68 

•S 5107 IS

1 the purposes of services provided under 

2 subparagraph (A) may be disclosed for the 

3 purposes of providing technical assistance, 

4 including audit, research, or improvement 

5 of a program under this section, either in 

6 aggregate or in a form that includes identi7 fiable or personal information of a pro8 ducer, if the Secretary obtains adequate 

9 assurances that— 

10 (I) the recipient shall ensure pri11 vacy safeguards of identifiable or per12 sonal information of a producer; and 

13 (II) the release of any data to the 

14 public will only occur only if the data 

15 has been transformed into a statistical 

16 or aggregate form. 

17 (e) REGULATIONS.—Not later than July 1, 2025, the 

18 Secretary shall promulgate regulations to carry out this 

19 section, including— 

20 (1) the amount of a payment under subsection 

21 (c), which shall be based on— 

22 (A) the quantity of carbon dioxide equiva23 lent emissions reduced; and 

24 (B) the considerations described in sub25 section (c)(3); 


ssavage on LAPJG3WLY3PROD with BILLS
69 

•S 5107 IS

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

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

3 provide the services under that subsection, includ4 ing— 

5 (A) an accreditation process; and 

6 (B) a conflict of interest policy; and 

7 (3) provisions for the ownership and transport8 ability of data, including historical data, generated 

9 by an eligible producer for the purpose of deter10 mining eligibility for payments under the program. 

11 SEC. 7. TRANSITION ASSISTANCE FOR IMPACTED COMMU12 NITIES. 

13 (a) DEFINITIONS.—In this section: 

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

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

16 Indian Self-Determination and Education Assistance 

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

18 (2) INDIVIDUAL WITH A BARRIER TO EMPLOY19 MENT.—The term ‘‘individual with a barrier to em20 ployment’’ has the meaning given the term in section 

21 3 of the Workforce Innovation and Opportunity Act 

22 (29 U.S.C. 3102). 

23 (3) INSTITUTION OF HIGHER EDUCATION.—The 

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


ssavage on LAPJG3WLY3PROD with BILLS
70 

•S 5107 IS

1 meaning given the term in section 101 of the Higher 

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

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

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

5 Workforce Innovation and Opportunity Act (29 

6 U.S.C. 3102). 

7 (5) RECOGNIZED POSTSECONDARY CREDEN8 TIAL.—The term ‘‘recognized postsecondary creden9 tial’’ has the meaning given the term in section 3 of 

10 the Workforce Innovation and Opportunity Act (29 

11 U.S.C. 3102). 

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

13 the Secretary of Commerce, acting through the As14 sistant Secretary of Commerce for Economic Devel15 opment. 

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

17 (A) a State; 

18 (B) the District of Columbia; 

19 (C) the Commonwealth of Puerto Rico; 

20 and 

21 (D) any other territory or possession of the 

22 United States. 

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

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


ssavage on LAPJG3WLY3PROD with BILLS
71 

•S 5107 IS

1 Workforce Innovation and Opportunity Act (29 

2 U.S.C. 3102). 

3 (9) SUPPORTIVE SERVICES.—The term ‘‘sup4 portive services’’ has the meaning given the term in 

5 section 3 of the Workforce Innovation and Oppor6 tunity Act (29 U.S.C. 3102). 

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

8 the Secretary of Labor, shall provide grants to eligible en9 tities to assist in the transition to a low- or zero-green10 house gas emitting economy. 

11 (c) ELIGIBLE ENTITIES.—An entity eligible to re12 ceive a grant under this section is a labor organization, 

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

14 government, an Indian Tribe, an economic development 

15 organization, a nonprofit organization, community-based 

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

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

18 (1) as determined by the Secretary, in coordina19 tion with the Secretary of Labor, has been or will be 

20 impacted by economic changes in carbon-intensive 

21 industries, including in an energy community (as de22 fined in section 45(b)(11) of the Internal Revenue 

23 Code of 1986); 

24 (2) as determined by the Secretary, in consulta25 tion with the Administrator of the Federal EmerVerDate Sep 11 2014 01:01 Sep 26, 2024 Jkt 049200 PO 00000 Frm 00071 Fmt 6652 Sfmt 6201 E:\BILLS\S5107.IS S5107

ssavage on LAPJG3WLY3PROD with BILLS
72 

•S 5107 IS

1 gency Management Agency, has been or is at risk of 

2 being impacted by extreme weather events, sea level 

3 rise, and natural disasters related to climate change; 

4 or 

5 (3) as determined by the Secretary, in consulta6 tion with the Administrator of the Environmental 

7 Protection Agency, has been impacted by harmful 

8 residuals from a fossil fuel or carbon-intensive in9 dustry. 

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

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

12 (1) economic and workforce development activi13 ties, such as— 

14 (A) job creation; 

15 (B) providing reemployment and worker 

16 transition assistance, including registered ap17 prenticeships, subsidized employment, job train18 ing, transitional jobs, and supportive services, 

19 with priority given to— 

20 (i) workers impacted by changes in 

21 carbon-intensive industries; 

22 (ii) individuals with a barrier to em23 ployment; and 

24 (iii) programs that lead to a recog25 nized postsecondary credential; 


ssavage on LAPJG3WLY3PROD with BILLS
73 

•S 5107 IS

1 (C) local and regional investment, includ2 ing commercial and industrial economic diver3 sification; 

4 (D) export promotion; and 

5 (E) establishment of a monthly subsidy 

6 payment for workers who retire early due to 

7 economic changes in carbon-intensive industries; 

8 (2) climate change resiliency, such as— 

9 (A) building electrical, communications, 

10 utility, transportation, and other infrastructure 

11 in flood-prone areas above flood zone levels; 

12 (B) building flood and stormproofing 

13 measures in flood-prone areas and erosion14 prone areas; 

15 (C) increasing the resilience of a surface 

16 transportation infrastructure asset to withstand 

17 extreme weather events and climate change im18 pacts; 

19 (D) improving stormwater infrastructure; 

20 (E) increasing the resilience of agriculture 

21 to extreme weather; 

22 (F) ecological restoration; 

23 (G) increasing the resilience of forests to 

24 wildfires; 

25 (H) increasing coastal resilience; and 


ssavage on LAPJG3WLY3PROD with BILLS
74 

•S 5107 IS

1 (I) implementing heat island cooling strat2 egies; 

3 (3) environmental remediation and restoration 

4 projects of fossil fuel industry facilities that are 

5 abandoned or retired, or closed due to bankruptcy, 

6 and residuals from carbon-intensive industries, such 

7 as— 

8 (A) coal ash and petroleum coke cleanup; 

9 (B) mine reclamation; 

10 (C) reclamation and plugging of aban11 doned oil and natural gas wells on private and 

12 public land; and 

13 (D) remediation of impaired waterways 

14 and drinking water resources; or 

15 (4) other activities as the Secretary, in coordi16 nation with the Secretary of Labor, the Adminis17 trator of the Federal Emergency Management Agen18 cy, and the Administrator of the Environmental Pro19 tection Agency, determines to be appropriate. 

20 (e) REQUIREMENTS.— 

21 (1) LABOR STANDARDS; NONDISCRIMINA22 TION.—An eligible entity that receives a grant under 

23 this section shall use the funds in a manner con24 sistent with sections 181 and 188 of the Workforce 


ssavage on LAPJG3WLY3PROD with BILLS
75 

•S 5107 IS

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

2 3248). 

3 (2) WAGE RATE REQUIREMENTS.— 

4 (A) IN GENERAL.—All laborers and me5 chanics employed by eligible entities to carry 

6 out projects and activities funded directly by or 

7 assisted in whole or in part by a grant under 

8 this section shall be paid at wages at rates not 

9 less than those prevailing on projects of a simi10 lar character in the locality as determined by 

11 the Secretary of Labor in accordance with sub12 chapter IV of chapter 31 of title 40, United 

13 States Code (commonly known as the ‘‘Davis14 Bacon Act’’). 

15 (B) AUTHORITY.—With respect to the 

16 labor standards specified in subparagraph (A), 

17 the Secretary of Labor shall have the authority 

18 and functions set forth in Reorganization Plan 

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

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

21 States Code. 

22 (3) BUY AMERICA REQUIREMENTS.— 

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

24 manufactured goods used for projects and acVerDate Sep 11 2014 01:01 Sep 26, 2024 Jkt 049200 PO 00000 Frm 00075 Fmt 6652 Sfmt 6201 E:\BILLS\S5107.IS S5107

ssavage on LAPJG3WLY3PROD with BILLS
76 

•S 5107 IS

1 tivities carried out with a grant under this sec2 tion shall be produced in the United States. 

3 (B) WAIVER.—The Secretary may waive 

4 the requirement in subparagraph (A) if the Sec5 retary finds that— 

6 (i) enforcing the requirement would be 

7 inconsistent with the public interest; 

8 (ii) the iron, steel, and manufactured 

9 goods produced in the United States are 

10 not produced in a sufficient and reasonably 

11 available amount or are not of a satisfac12 tory quality; or 

13 (iii) enforcing the requirement will in14 crease the overall cost of the project or ac15 tivity by more than 25 percent. 

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

17 a grant under this section is encouraged to collaborate or 

18 partner with other eligible entities and impacted commu19 nities in planning and carrying out activities with that 

20 grant. 

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

22 on which the Secretary establishes the grant program 

23 under this section, the Secretary and the Secretary of 

24 Labor shall submit to Congress a report on the effective25 ness of the grant program, including— 


ssavage on LAPJG3WLY3PROD with BILLS
77 

•S 5107 IS

1 (1) the number of individuals that have received 

2 reemployment or worker transition assistance under 

3 this section; 

4 (2) a description of any job creation activities 

5 carried out with a grant under this section and the 

6 number of jobs created from those activities; 

7 (3) the percentage of individuals that have re8 ceived reemployment or worker transition assistance 

9 under this section who are, during the second and 

10 fourth quarters after exiting the program— 

11 (A) in education or training activities; or 

12 (B) employed; 

13 (4) the average wages of individuals that have 

14 received reemployment or worker transition assist15 ance under this section during the second and fourth 

16 quarters after exit from the program; 

17 (5) a description of any regional investment ac18 tivities carried out with a grant under this section; 

19 (6) a description of any export promotion activi20 ties carried out with a grant under this section, in21 cluding— 

22 (A) a description of the products pro23 moted; and 

24 (B) an analysis of any increase in exports 

25 as a result of the promotion; 


ssavage on LAPJG3WLY3PROD with BILLS
78 

•S 5107 IS

1 (7) a description of any resilience activities car2 ried out with a grant under this section; 

3 (8) a description of any cleanup activities from 

4 fossil fuel industry facilities or carbon-intensive in5 dustries carried out with a grant under this section; 

6 and 

7 (9) the distribution of funding among geo8 graphic and socioeconomic groups, including urban 

9 and rural communities, low-income communities, 

10 communities of color, and Indian Tribes. 

11 (h) FUNDING.— 

12 (1) INITIAL FUNDING.—There is appropriated 

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

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

15 of fiscal years 2025 and 2026 to carry out this sec16 tion, to remain available until expended. 

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

18 Secretary shall carry out this section using amounts 

19 made available from the America’s Clean Future 

20 Fund under section 9512 of the Internal Revenue 

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

22 SEC. 8. STUDY ON CARBON PRICING. 

23 (a) IN GENERAL.—Not later than January 1, 2028, 

24 the Administrator of the Environmental Protection Agen25 cy (referred to in this section as the ‘‘Administrator’’) 


ssavage on LAPJG3WLY3PROD with BILLS
79 

•S 5107 IS

1 shall seek to enter into an agreement with the National 

2 Academy of Sciences under which the National Academy 

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

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

5 established under sections 4692 and 4693 of the Internal 

6 Revenue Code of 1986 in achieving the following goals: 

7 (1) A net reduction of greenhouse gas emissions 

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

9 (2) A net reduction of greenhouse gas emissions 

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

11 (b) REQUIREMENTS.—In executing the agreement 

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

13 in carrying out a study under that subsection, the Na14 tional Academy of Sciences— 

15 (1) includes an evaluation of— 

16 (A) total annual greenhouse gas emissions 

17 by the United States, including greenhouse gas 

18 emissions not subject to the fees described in 

19 that subsection; 

20 (B) the historic trends in the total green21 house gas emissions evaluated under subpara22 graph (A); and 

23 (C) the impacts of the fees established 

24 under sections 4692 and 4693 of the Internal 

25 Revenue Code of 1986 on changes in the levels 


ssavage on LAPJG3WLY3PROD with BILLS
80 

•S 5107 IS

1 of fossil fuel-related localized air pollutants in 

2 environmental justice communities (as defined 

3 in section 2(e)(1)); 

4 (2) analyzes the extent to which greenhouse gas 

5 emissions have been or would be reduced as a result 

6 of current and potential future policies, including— 

7 (A) a projection of greenhouse gas emis8 sions reductions that would result if the regula9 tions of the Administrator were to be adjusted 

10 to impose stricter limits on greenhouse gas 

11 emissions than the goals described in that sub12 section, with a particular focus on greenhouse 

13 gas emissions not subject to the fees described 

14 in that subsection; 

15 (B) the status of greenhouse gas emissions 

16 reductions that result from the fees established 

17 under sections 4692 and 4693 of the Internal 

18 Revenue Code of 1986; 

19 (C) a projection of greenhouse gas emis20 sions reductions that would result if the fees es21 tablished under those sections were annually in22 creased— 

23 (i) at the current price path; and 

24 (ii) above the current price path; 


ssavage on LAPJG3WLY3PROD with BILLS
81 

•S 5107 IS

1 (D) an analysis of greenhouse gas emis2 sions reductions that result from the policies of 

3 States, units of local government, Tribal com4 munities, and the private sector; and 

5 (E) the status and projections of 

6 decarbonization in other major economies; and 

7 (3) submits a report to the Administrator, Con8 gress, and the Board of Directors of the Climate 

9 Change Finance Corporation describing the results 

10 of the study. 

11 SEC. 9. ESTABLISHMENT OF TARGETS FOR CARBON SE12 QUESTRATION BY LAND AND WATER. 

13 (a) IN GENERAL.—The Chair of the Council on Envi14 ronmental Quality, in consultation with the Secretaries of 

15 Agriculture, Commerce, and the Interior, the Chief of En16 gineers, and the Administrator of the Environmental Pro17 tection Agency, shall— 

18 (1) establish a target for carbon sequestration 

19 that can reasonably be achieved through enhancing 

20 the ability of public and private land and water to 

21 function as natural carbon sinks; 

22 (2) develop strategies for meeting that target; 

23 and 


ssavage on LAPJG3WLY3PROD with BILLS
82 

•S 5107 IS

1 (3) develop strategies to expand protections for 

2 ecosystems that sequester carbon and provide resil3 iency benefits, such as— 

4 (A) flood protection; 

5 (B) soil and beach retention; 

6 (C) erosion reduction; 

7 (D) biodiversity; 

8 (E) water purification; and 

9 (F) nutrient cycling. 

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

11 of enactment of this Act, the Chair of the Council on Envi12 ronmental Quality shall submit to Congress a report de13 scribing— 

14 (1) the target and strategies described in para15 graphs (1) through (3) of subsection (a); and 

16 (2) any additional statutory authorities or au17 thorized funding levels needed to successfully imple18 ment those strategies. 

Æ 


ssavage on LAPJG3WLY3PROD with BILLS