I 

118TH CONGRESS 

2D SESSION H. R. 9334 

To strengthen domestic manufacturing, bring next generation iron and steel 

back to the United States, and revitalize deindustrialized regions. 

IN THE HOUSE OF REPRESENTATIVES 

AUGUST 9, 2024 

Mr. KHANNA (for himself, Mr. DELUZIO, Ms. KAPTUR, Ms. STEVENS, Mrs. 

DINGELL, Ms. ADAMS, Mr. DAVIS of North Carolina, Ms. BUDZINSKI, 

Mr. LYNCH, Mrs. FOUSHEE, Ms. LEE of Pennsylvania, and Mr. 

THANEDAR) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Energy 

and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To strengthen domestic manufacturing, bring next generation 

iron and steel back to the United States, and revitalize 

deindustrialized regions. 

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; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Steel Modernization Act of 2024’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows: 


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Sec. 1. Short title; table of contents. 

TITLE I—INDUSTRIAL INNOVATION 

Sec. 101. Covered financial assistance. 

Sec. 102. Contract for differences pilot program. 

Sec. 103. Near-zero emissions intensity iron production credit. 

Sec. 104. Green iron and steel facility energy investment credits. 

Sec. 105. Study and report on demand generation. 

Sec. 106. Report on strategy to bring zero-greenhouse gas emissions electricity 

to the electric grid. 

Sec. 107. Prohibition. 

Sec. 108. Definitions. 

TITLE II—TARIFF ON DIRTY IMPORTED STEEL 

Sec. 201. Calculation of emissions intensity. 

Sec. 202. Imposition of emissions intensity tariff. 

Sec. 203. Definitions. 

TITLE III—EXPENDITURE OF REVENUES 

Sec. 301. Administrative expenses. 

Sec. 302. Economic Support Fund. 

1 TITLE I—INDUSTRIAL 

2 INNOVATION 

3 SEC. 101. COVERED FINANCIAL ASSISTANCE. 

4 (a) IN GENERAL.—The Secretary of Energy shall, 

5 subject to the availability of appropriations for such pur6 pose, award eligible entities covered financial assistance in 

7 accordance with this section. 

8 (b) COVERED FINANCIAL ASSISTANCE.—The Sec9 retary of Energy may award, on a competitive basis, cov10 ered financial assistance to an eligible entity to carry out 

11 a project for— 

12 (1) construction of an eligible facility that will 

13 use an advanced industrial iron technology or an ad14 vanced industrial steel technology; 


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1 (2) the purchase, installation, or implementa2 tion, of an advanced industrial iron technology or an 

3 advanced industrial steel technology at an eligible fa4 cility; 

5 (3) retrofits, upgrades to, or operational im6 provements at, an eligible facility to install or imple7 ment an advanced industrial iron technology or an 

8 advanced industrial steel technology at such eligible 

9 facility; 

10 (4) demonstration of an early-stage advanced 

11 industrial iron technology or an early-stage advanced 

12 industrial steel technology at an eligible facility; or 

13 (5) engineering studies and other work needed 

14 to construct an eligible facility described in para15 graph (1) or prepare an eligible facility for activities 

16 described in paragraph (2), (3) or (4). 

17 (c) APPLICATION.— 

18 (1) IN GENERAL.—To be eligible to receive cov19 ered financial assistance under this section, an eligi20 ble entity shall submit to the Secretary of Energy an 

21 application at such time, in such manner, and con22 taining such information as the Secretary may re23 quire, including— 

24 (A) a plan for the proposed project, includ25 ing a description of— 


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1 (i) the technical and commercial via2 bility of the applicable advanced industrial 

3 iron technology or advanced industrial steel 

4 technology; 

5 (ii) how the project will enable the 

6 steel or iron industry to decrease its green7 house gas emissions; and 

8 (B) a description of how the eligible entity 

9 plans to source domestically produced material, 

10 including iron and steel, for all construction re11 lated to the proposed project; 

12 (C) any new iron, steel, or other metal pro13 duction capacity expected; 

14 (D) the expected greenhouse gas emissions 

15 reductions to be achieved at the eligible facility 

16 and the methods for calculating such emissions 

17 reductions; 

18 (E) the expected number of new jobs that 

19 will be created; 

20 (F) the expected number of jobs retained 

21 that may have otherwise been terminated; 

22 (G) the expected impact on production and 

23 capacity at existing facilities, including any re24 lated plans to idle or close a facility or layoff 

25 or reduce hours for current employees; 


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1 (H) a breakdown of costs of the project, 

2 including a proposed Federal Government share 

3 of total costs; 

4 (I) a plan to recruit and train, and provide 

5 employment and advancement for women, peo6 ple of color, people of lower economic status, 

7 and other minorities; 

8 (J) assurances that all laborers and me9 chanics employed by the eligible entity or any 

10 contractor or subcontractor in the performance 

11 of construction, alteration, or repair work (in12 cluding retrofits, upgrades, and any other im13 provements) carried out, in whole or in part, 

14 with covered financial assistance made available 

15 under this Act shall be paid wages at rates not 

16 less than those prevailing on projects of a char17 acter similar 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. With respect to the labor stand21 ards specified in this subsection, the Secretary 

22 of Labor shall have the authority and functions 

23 set forth in Reorganization Plan Numbered 14 

24 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and 

25 section 3145 of title 40, United States Code; 


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1 (K) with respect to any eligible facility for 

2 which the total estimated cost of the construc3 tion contract is $25,000,000 or more, an assur4 ance that every contractor and subcontractor 

5 engaged in the construction on the project 

6 agree, for that project, to negotiate or become 

7 a party to a project labor agreement as that 

8 term is defined in section 22.502 of title 48, 

9 Code of Federal Regulations; and 

10 (L) for eligible entities that are applying 

11 for more than $50,000,000 of covered financial 

12 assistance under this section— 

13 (i) a plan for how the eligibly entity 

14 will carry out the training program de15 scribed in subsection (g)(1); 

16 (ii) a community benefits plan that 

17 meets the requirements of subsection (h); 

18 and 

19 (iii) a commitment and plan to con20 duct town halls with local communities, in21 cluding frontline communities, member22 ship-based nonprofit organizations with 

23 members in the community, and labor or24 ganizations, and get letters of support 

25 from community groups representing a 


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1 broad range of constituencies that dem2 onstrate that the groups understand the el3 igible entity’s planned project and agree to 

4 it. 

5 (2) EVALUATION CRITERIA.—The Secretary of 

6 Energy shall publish criteria on evaluating applica7 tions submitted under this subsection. 

8 (d) REQUIREMENTS FOR AWARDEES.— 

9 (1) PRODUCTION AND EMISSION INTENSITY RE10 QUIREMENTS.— 

11 (A) IN GENERAL.—An eligible facility with 

12 respect to which covered financial assistance 

13 under this section is awarded shall— 

14 (i) begin production of near-zero emis15 sions intensity steel or near-zero emissions 

16 intensity iron not later than the earlier 

17 of— 

18 (I) January 1, 2035; and 

19 (II) the date that is 7 years after 

20 the date on which covered financial 

21 assistance for the project is received 

22 by the applicable eligible entity; and 

23 (ii) after the date of production de24 scribed in clause (i) begins, only produce 

25 iron that is near-zero emissions intensity 


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1 iron or steel that is near-zero emissions in2 tensity steel. 

3 (B) PROJECTS TO UPGRADE BLAST FUR4 NACES.— 

5 (i) IN GENERAL.—An eligible facility 

6 with respect to which covered financial as7 sistance under this section is awarded for 

8 any project to upgrade a blast furnace that 

9 actively produces iron as of the date of en10 actment of this Act shall achieve at least 

11 a 50 percent reduction in emissions inten12 sity at the start of production of near-zero 

13 emissions intensity iron relative to average 

14 emissions intensity of the iron produced by 

15 the eligible facility between June 1, 2023, 

16 and June 1, 2024. 

17 (ii) USE OF CLEAN HYDROGEN.—For 

18 a project described in clause (i) that will 

19 upgrade to a direct reduced iron furnace, 

20 such direct reduced iron furnace shall— 

21 (I) be capable of using 100 per22 cent hydrogen to reduce iron ore; 

23 (II) blend at least 10 percent 

24 non-fossil based hydrogen not later 

25 than 2 years after the direct reduced 


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1 iron furnace commences operation; 

2 and 

3 (III) use 100 percent clean hy4 drogen by the earlier of the dates de5 scribed in clause (i). 

6 (iii) MODIFICATIONS TO REQUIRE7 MENTS.—In the event that hydrogen is not 

8 available in sufficient volumes or at rea9 sonable price (as determined by the Sec10 retary of Energy, in consultation with 

11 stakeholders from relevant industries) the 

12 Secretary may, as the Secretary deter13 mines appropriate, modify any requirement 

14 under clause (ii). 

15 (2) EMISSIONS REPORTING REQUIREMENTS.— 

16 (A) REPORTING TO DOE.—An eligible enti17 ty awarded covered financial assistance under 

18 this section shall report to the Secretary of En19 ergy any greenhouse gas emissions (determined 

20 on a mine-to-metal basis), related to the pro21 duction by the applicable eligible facility of iron 

22 or steel after the date on which covered finan23 cial assistance is received by the eligible entity. 

24 (B) ELIGIBLE FACILITY SPECIFIC ENVI25 RONMENTAL PRODUCT DECLARATIONS.—An eliVerDate Sep 11 2014 18:54 Sep 09, 2024 Jkt 049200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H9334.IH H9334

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1 gible entity awarded covered financial assist2 ance under this section shall offer to provide 

3 buyers of the near-zero emissions intensity steel 

4 or near-zero emissions intensity iron produced 

5 at the applicable eligible facility environmental 

6 product declarations that are— 

7 (i) specific to the near-zero emissions 

8 intensity steel or near-zero emissions inten9 sity iron produced at such eligible facility; 

10 and 

11 (ii) updated at least annually, begin12 ning not later than 12 months after pro13 duction of such near-zero emissions inten14 sity steel or near-zero emissions intensity 

15 iron begins. 

16 (3) TRAINING.—Eligible entities that receive 

17 covered financial assistance of more than 

18 $50,000,000 under this section shall meet the re19 quirements under subsection (g). 

20 (4) COMMUNITY BENEFITS.—Eligible entities 

21 that receive covered financial assistance of more 

22 than $50,000,000 under this section shall meet the 

23 requirements under subsection (h). 


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1 (5) WAGES.—Eligible entities that receive cov2 ered financial assistance under this Act shall comply 

3 with the requirements under subsection (c)(1)(J). 

4 (6) PROJECT LABOR AGREEMENTS.—With re5 spect to any eligible facility for which the total esti6 mated cost of the construction contract is 

7 $25,000,000 or more, the eligible entity shall comply 

8 with the requirements under subsection (c)(1)(K). 

9 (e) PRIORITY.—The Secretary of Energy shall— 

10 (1) in awarding covered financial assistance 

11 under this section, give priority— 

12 (A) to eligible entities that will support 

13 training of current and former workers to build 

14 skills required to work in an upgraded or new 

15 facility and retention of such current workers; 

16 (B) to eligible entities that will ensure the 

17 utilization of registered apprentices during the 

18 construction of the eligible facility in accordance 

19 with the standards and requirements set forth 

20 in parts 29 and 30 of title 29, Code of Federal 

21 Regulations; 

22 (C) to projects that will be carried out in 

23 existing or legacy iron or steel-making commu24 nities; 


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1 (D) to eligible entities that commit to hir2 ing at least 25 percent of the applicable work3 force from an existing or legacy iron or steel4 making community; 

5 (E) to projects based on the extent to 

6 which the applicable project would provide the 

7 greatest benefit to the greatest number of peo8 ple within the metropolitan area in which the 

9 eligible facility is located; 

10 (F) to projects based on the expected 

11 greenhouse gas emissions reductions to be 

12 achieved by carrying out the applicable project; 

13 (G) to projects based on the extent to 

14 which the applicable project will enable the steel 

15 or iron industry to decrease its greenhouse gas 

16 emissions by 2050; 

17 (H) to projects that will result in the larg18 est improvement in air quality; 

19 (I) to projects to upgrade blast furnaces 

20 that actively produce iron as of the date of en21 actment of this Act; 

22 (J) to eligible entities based on whether 

23 the applicable eligible entity participates or 

24 would participate in a program that connects 

25 producers of near-zero emissions intensity steel 


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1 or near-zero emissions intensity iron with buy2 ers of such near-zero emissions intensity steel 

3 or near-zero emissions intensity iron; 

4 (K) to eligible entities that commit, and 

5 provide a plan, to source at least 30 percent of 

6 electricity for use at the project site from zero7 carbon sources within 2 years of receiving the 

8 covered financial assistance, and use 100 per9 cent zero-carbon electricity by 2035, with the 

10 Secretary of Energy determining the rate at 

11 which such zero-carbon electricity use should 

12 scale to 100 percent; and 

13 (L) to projects that would result in an in14 creased supply of iron or steel products that are 

15 needed by current and prospective end users as 

16 identified through a request for information 

17 issued not later than 2 months after the date 

18 of enactment of this Act by the Department of 

19 Energy’s Office of Clean Energy Demonstra20 tions; and 

21 (2) in awarding covered financial assistance for 

22 over $50,000,000 under this section, give priority to 

23 eligible entities that commit to— 

24 (A) employing local individuals and individ25 uals from frontline communities, and providing 


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1 robust training, workforce development oppor2 tunities, mentorship programs and career ad3 vancement opportunities to these individuals; 

4 (B) and provide a plan for— 

5 (i) contracting with an objective and 

6 independent third party to conduct a re7 port to forecast the impact of the applica8 ble proposed project on pollution and 

9 health of individuals in the project area; 

10 and 

11 (ii) contracting with an objective and 

12 independent third party to conduct air 

13 quality monitoring before any construction 

14 associated with the proposed project begins 

15 and continuing until 6 months after such 

16 construction ends, in frontline communities 

17 that are exposed to persistent air pollution 

18 and within 25 miles of the metropolitan 

19 area where which such construction will 

20 occur; and 

21 (C) building new zero-carbon electricity 

22 generation capacity, hydrogen generation capac23 ity, or energy storage capacity. 

24 (f) COST SHARE AND AMOUNTS.— 


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1 (1) COST SHARE.—The non-Federal cost share 

2 of a project for which covered financial assistance is 

3 provided under this section shall be not less than 50 

4 percent, as determined by the Secretary of Energy. 

5 (2) ALIGNMENT WITH EMISSIONS INTENSITY.— 

6 The Secretary of Energy shall determine the cost7 share and amount of covered financial assistance 

8 awarded to an eligible entity under this section 

9 based on the final emissions intensity of the near10 zero emissions intensity steel or near-zero emissions 

11 intensity iron to be produced. 

12 (3) TOTAL AMOUNT.—The amount of covered 

13 financial assistance provided under this section shall 

14 not exceed $500,000,000 per project. 

15 (4) INFLATION ADJUSTMENT.— 

16 (A) IN GENERAL.—In the case of any cal17 endar year beginning after 2024, there shall be 

18 substituted for any dollar amount described in 

19 subparagraph (B), an amount equal to the 

20 product of— 

21 (i) such dollar amount, multiplied by 

22 (ii) the inflation adjustment factor for 

23 such calendar year determined under sec24 tion 43(b)(3)(B) of the Internal Revenue 

25 Code of 1986 for such calendar year, deVerDate Sep 11 2014 18:54 Sep 09, 2024 Jkt 049200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\H9334.IH H9334

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1 termined by substituting ‘‘2023’’ for 

2 ‘‘1990’’. 

3 (B) AMOUNTS DESCRIBED.—Subparagraph 

4 (A) shall apply with respect to each dollar 

5 amount in— 

6 (i) subsection (c)(1)(J); 

7 (ii) subsection (e)(2); 

8 (iii) paragraph (3) of this subsection; 

9 (iv) subsection (g)(1); and 

10 (v) section 201. 

11 (g) SUPPORTING GOOD CAREERS.— 

12 (1) TRAINING REQUIRED.— 

13 (A) IN GENERAL.—Beginning on the date 

14 that an eligible entity receives any amount of 

15 covered financial assistance under this Act in 

16 excess of $50,000,000, and ending on the date 

17 that is 5 years after the date the eligible entity 

18 received such covered financial assistance, an 

19 eligible entity shall— 

20 (i) carry out a training program de21 scribed in subparagraph (B); 

22 (ii) reserve 5 percent of the labor 

23 costs of the eligible entity to carry out 

24 such training program; and 


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1 (iii) not later than 12 months after 

2 any such receipt, certify to the Secretary 

3 that the eligible entity is carrying out such 

4 training program. 

5 (B) TRAINING REQUIREMENTS.— 

6 (i) IN GENERAL.—An eligible entity 

7 required to carry out a training program 

8 required under subparagraph (A)(i) shall 

9 satisfy the following requirements: 

10 (I) Participants in the training 

11 program shall be trained to learn 

12 skills or knowledge that are related to 

13 the production of near-zero emissions 

14 intensity iron or near-zero emissions 

15 intensity steel. 

16 (II) Such participants shall be 

17 existing employees, new hires, or pro18 spective employees of the eligible enti19 ty. 

20 (III) The participants shall be 

21 paid at a rate equivalent to that of an 

22 individual working full-time in the po23 sition for which they are training. 

24 (IV) If a participant is not guar25 anteed full-time employment with the 


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1 eligible entity after the completion of 

2 the training program, such a partici3 pant shall be provided a stipend (as 

4 described in clause (ii)) on a weekly 

5 basis. 

6 (V) An eligible entity shall pro7 vide to each individual who completes 

8 the training program a certificate of 

9 completion that states the skills and 

10 knowledge taught during the program. 

11 (ii) STIPEND.— 

12 (I) AMOUNT.—The Federal share 

13 of a stipend provided to an individual 

14 described in clause (i)(IV) shall be— 

15 (aa) equal to $500 for each 

16 month; and 

17 (bb) not more than $2500 in 

18 aggregate. 

19 (II) RELATIONSHIP TO OTHER

20 PROGRAMS.—A stipend provided to an 

21 individual described in clause (i)(IV) 

22 shall not be taken into account in de23 termining the need or eligibility of 

24 such individual for any Federal, State, 


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1 or local program financed in whole or 

2 in part with Federal funds. 

3 (C) GOVERNMENT MATCH.— 

4 (i) AMOUNT.—During the period de5 scribed in subparagraph (A), the Secretary 

6 of Energy shall provide to an eligible enti7 ty, on a monthly basis for each individual 

8 participating in training program carried 

9 out by the eligible entity, the lesser of— 

10 (I) $500; or 

11 (II) an amount not to exceed 25 

12 percent of— 

13 (aa) the training partici14 pant’s salary described in sub15 paragraph (B)(iii); or 

16 (bb) if the training partici17 pant is not guaranteed full-time 

18 employment after completion of 

19 the training program, the stipend 

20 provided to the training partici21 pant. 

22 (ii) MAXIMUM.—The Secretary of En23 ergy may not provide to an eligible entity 

24 more than $2,500 per training participant 


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1 for each instance of covered financial as2 sistance provided to the eligible entity. 

3 (D) LABOR-MANAGEMENT COMMITTEE.— 

4 An eligible entity described in subparagraph (A) 

5 shall establish a labor-management committee 

6 that— 

7 (i) oversees the training program re8 quired under subparagraph (A)(i); 

9 (ii) regularly raises safety concerns to 

10 the eligible entity for the eligible entity to 

11 address; and 

12 (iii) provides to the eligible entity a 

13 reasonable process and time line to address 

14 such concerns to mitigate injuries at the 

15 workplace. 

16 (2) LABOR REPRESENTATION.— 

17 (A) IN GENERAL.—With respect to the em18 ployees employed by an eligible entity at an eli19 gible facility that is supported by covered finan20 cial assistance provided under this Act, the eli21 gible entity that employs such employees, and 

22 any labor organization that seeks to represent 

23 such employees, this paragraph shall supersede 

24 the National Labor Relations Act (29 U.S.C. 


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1 151 et seq.) to the extent that such Act con2 flicts with this paragraph. 

3 (B) RECOGNITION.—An eligible entity de4 scribed in subparagraph (A) shall recognize, for 

5 purposes of collective bargaining, a labor orga6 nization that demonstrates that a majority of 

7 the employees at an eligible facility described in 

8 subparagraph (A), in a unit appropriate for col9 lective bargaining, have signed valid authoriza10 tions designating the labor organization as their 

11 collective bargaining representative and that no 

12 other labor organization is certified or recog13 nized pursuant to section 9 of the National 

14 Labor Relations Act (29 U.S.C. 159) as the ex15 clusive representative of any of the employees in 

16 such unit who perform or will perform such 

17 work. Upon demonstrating that a majority of 

18 the employees in the unit have designated a 

19 labor organization as their collective bargaining 

20 representative, the eligible entity shall notify 

21 the labor organization and the National Labor 

22 Relations Board that the eligible entity— 

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1 ployees in such unit who perform or will 

2 perform such work; and 

3 (ii) recognizes such labor organization 

4 as the exclusive representative of the em5 ployees in such unit. 

6 (C) DISPUTE RESOLUTION AND UNIT CER7 TIFICATION.— 

8 (i) IN GENERAL.—If a dispute over 

9 majority status or the appropriateness of 

10 the unit described in subparagraph (B) 

11 arises between the eligible entity and the 

12 labor organization, either party may re13 quest that the National Labor Relations 

14 Board investigate and resolve the dispute. 

15 (ii) FINDING OF MAJORITY STATUS.— 

16 If the Board finds that a majority of the 

17 employees in a unit appropriate for pur18 poses of collective bargaining who perform 

19 or will perform work funded under this 

20 section has signed valid authorizations des21 ignating the labor organization as their 

22 representative for such purposes and that 

23 no other individual or labor organization is 

24 certified or recognized as the exclusive rep25 resentative of any of the employees in the 


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1 unit who perform or will perform such 

2 work for such purposes, the Board shall 

3 not direct an election but shall certify the 

4 labor organization as the representative de5 scribed in section 9(a) of the National 

6 Labor Relations Act (29 U.S.C. 159(a)). 

7 (D) MEETINGS AND COLLECTIVE BAR8 GAINING AGREEMENTS.—Not later than 10 

9 days after an eligible entity described in sub10 paragraph (A) receives a written request for 

11 collective bargaining from a labor organization 

12 representing the employees of the entity who 

13 perform or will perform work at an eligible fa14 cility that is supported by funds provided pur15 suant to this Act, or within such period as the 

16 parties may agree upon, the labor organization 

17 and eligible entity shall meet to begin bar18 gaining and shall make every reasonable effort 

19 to conclude and sign a collective bargaining 

20 agreement. 

21 (E) MEDIATION AND CONCILIATION.—If, 

22 after the expiration of the 90-day period begin23 ning on the date on which collective bargaining 

24 is commenced under subparagraph (D), or such 

25 additional period as the parties may agree 


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1 upon, the parties have failed to reach an agree2 ment, either party may notify the Federal Medi3 ation and Conciliation Service (referred to in 

4 this paragraph as the ‘‘Service’’) of the exist5 ence of a dispute and request mediation. When6 ever such a request is received, it shall be the 

7 duty of the Service promptly to communicate 

8 with the parties and to use its best efforts, by 

9 mediation and conciliation, to bring them to 

10 agreement. 

11 (F) TRIPARTITE ARBITRATION.— 

12 (i) IN GENERAL.—If, after the expira13 tion of the 30-day period beginning on the 

14 date on which the request for mediation is 

15 made under subparagraph (E), or such ad16 ditional period as the parties may agree 

17 upon, the Service is not able to bring the 

18 parties to agreement by mediation and 

19 conciliation, the Service shall refer the dis20 pute to a tripartite arbitration panel estab21 lished in accordance with such regulations 

22 as may the Service may prescribe. 

23 (ii) MEMBERS.—A tripartite arbitra24 tion panel established under this subpara25 graph with respect to a dispute shall be 


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1 composed of 1 member selected by the 

2 labor organization, 1 member selected by 

3 the eligible entity, and 1 neutral member 

4 mutually agreed to by the labor organiza5 tion and the eligible entity. Each such 

6 member shall be selected not later than 14 

7 days after the expiration of the 30-day pe8 riod described in clause (i) with respect to 

9 such dispute. Any member not so selected 

10 by the date that is 14 days after the expi11 ration of such period shall be selected by 

12 the Service. 

13 (iii) DECISIONS.— 

14 (I) IN GENERAL.—A majority of 

15 a tripartite arbitration panel estab16 lished under this subparagraph with 

17 respect to a dispute shall render a de18 cision settling the dispute as soon as 

19 practicable and (absent extraordinary 

20 circumstances or by agreement of the 

21 parties) the panel shall render such 

22 decision not later than 120 days after 

23 the establishment of the panel. 

24 (II) LENGTH OF DECISION.— 

25 Such a decision shall be binding upon 


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1 the parties for a period of 2 years, un2 less amended during such period by 

3 written consent of the parties. 

4 (III) DECISION CONSIDER5 ATIONS.—The panel shall consider the 

6 following when making a decision: 

7 (aa) The financial status 

8 and future financial status of the 

9 eligible entity. 

10 (bb) The size and type of 

11 the operation and business of the 

12 eligible entity. 

13 (cc) The cost of living of the 

14 employees employed by the eligi15 ble entity. 

16 (dd) The ability of such em17 ployees to sustain themselves, 

18 their families, and their depend19 ents on the wages and benefits 

20 earned from the eligible entity. 

21 (ee) The wages and benefits 

22 other employees earn in the same 

23 or a similar industry. 

24 (G) CONTRACTORS AND SUBCONTRAC25 TORS.—An eligible entity described in subparaVerDate Sep 11 2014 18:54 Sep 09, 2024 Jkt 049200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6201 E:\BILLS\H9334.IH H9334

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1 graph (A) may only procure goods or services 

2 from a contractor or subcontractor, whose em3 ployees perform or will perform work funded 

4 under this section, if the contractor or subcon5 tractor comply with the requirements set forth 

6 in subparagraphs (A) through (F). 

7 (H) DEFINITIONS.—In this paragraph, the 

8 terms ‘‘employee’’ and ‘‘labor organization’’ 

9 have the meanings given the terms in section 2 

10 of the National Labor Relations Act (29 U.S.C. 

11 152). 

12 (I) LIMITATION OF FUNDS.—An eligible 

13 entity may not assist, promote, or deter orga14 nizing of labor organizations. 

15 (3) SENSE OF CONGRESS.—It is the sense of 

16 Congress that— 

17 (A) the United States must tap into all our 

18 Nation’s talent in order to successfully usher in 

19 an industrial renaissance in the United States; 

20 (B) building a factory is not enough, it is 

21 necessary to build the infrastructure and eco22 system to power such factory; 

23 (C) the United States must make sure jobs 

24 in the iron and steel industries, and in all in25 dustries, are good jobs, that all workers have 


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1 quality, affordable childcare and healthcare, and 

2 that all jobs pay a family-sustaining wage; 

3 (D) child care is critical to expanding em4 ployment opportunities for economically dis5 advantaged individuals, especially for economi6 cally disadvantaged women and children; and 

7 (E) to meet families’ needs and expand 

8 employment opportunity, child care should be— 

9 (i) affordable, with costs in reach for 

10 low- and medium-income households; 

11 (ii) accessible, at a convenient location 

12 with hours that meet workers’ needs; 

13 (iii) reliable, giving workers confidence 

14 that they will not need to miss work for 

15 unexpected child care issues; and 

16 (iv) high-quality, providing a safe and 

17 healthy environment that families can trust 

18 and that nurtures the healthy growth and 

19 development of children. 

20 (h) COMMUNITY BENEFITS.— 

21 (1) ADVISORY COUNCIL.— 

22 (A) ESTABLISHMENT.— 

23 (i) IN GENERAL.—The Secretary of 

24 Energy and the Administrator of the Envi25 ronmental Protection Agency, in consultaVerDate Sep 11 2014 18:54 Sep 09, 2024 Jkt 049200 PO 00000 Frm 00028 Fmt 6652 Sfmt 6201 E:\BILLS\H9334.IH H9334

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1 tion with, and written approval from, the 

2 White House Environmental Justice Advi3 sory Council, shall jointly establish an ad4 visory council (in this section referred to as 

5 the ‘‘advisory council’’) to— 

6 (I) not later than 5 months after 

7 the date of enactment of this Act, 

8 submit to the Secretary of Energy 

9 guidance on— 

10 (aa) information to be in11 cluded in a community benefits 

12 plan under this section; and 

13 (bb) criteria for weighing 

14 the strength of a community ben15 efits plan submitted under this 

16 section; 

17 (II) not later than 2 years after 

18 the date of enactment of this Act, 

19 submit to the Secretary of Energy 

20 guidance on information to be in21 cluded in a community benefits agree22 ment under this section; and 

23 (III) act as a liaison to commu24 nities described in paragraph (3)(A) 

25 by sharing— 


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1 (aa) information and re2 sources developed by the Depart3 ment of Energy or eligible entity 

4 applicants about the proposed 

5 projects and their environmental, 

6 public health, and jobs impacts; 

7 and 

8 (bb) community input with 

9 eligible entity applicants and the 

10 Secretary of Energy in order to 

11 facilitate the drafting of commu12 nity benefits plans. 

13 (ii) FORMATION.—In establishing the 

14 advisory council, the Secretary of Energy 

15 and the Administrator of the Environ16 mental Protection Agency shall jointly— 

17 (I) publish in the Federal Reg18 ister an announcement about its for19 mation; and 

20 (II) conduct targeted outreach 

21 and recruiting to ensure there is ade22 quate stakeholder representation on 

23 the advisory council. 

24 (B) REPRESENTATIVES.— 


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1 (i) IN GENERAL.—The advisory coun2 cil shall consist of representatives from ex3 isting or legacy iron or steel-making com4 munities, communities that will be signifi5 cantly affected by the steel supply chain, 

6 labor organizations, civil society and public 

7 interest advocates who represent the inter8 ests of such communities, membership9 based nonprofit organizations with mem10 bers in the community, constituencies of 

11 such communities, and individuals who 

12 have experience negotiating workforce and 

13 community benefits agreements. 

14 (ii) ADDITIONAL REPRESENTA15 TIVES.—The Secretary of Energy may add 

16 additional members to the advisory council 

17 who represent communities described in 

18 paragraph (3)(A), as determined appro19 priate by the Secretary. 

20 (iii) COMPENSATION.—Frontline com21 munity members who serve on the advisory 

22 council shall be compensated for their time 

23 using funds made available to carry out 

24 this Act. 


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1 (iv) PARTICIPATION.—Participation in 

2 the advisory council does not preclude 

3 members from also serving in a community 

4 benefits group described in paragraph (6). 

5 (2) GUIDELINES.— 

6 (A) REQUEST FOR INFORMATION.—Not 

7 later than 1 month after the date of enactment 

8 of this Act, the Secretary of Energy shall pub9 lish a request for information (to remain open 

10 for a period of not less than 3 months) solic11 iting information from individuals living in ex12 isting or legacy iron or steel-making commu13 nities and individuals with experience negoti14 ating community benefits agreements on cri15 teria that should be included in guidelines for 

16 community benefits plans and guidelines com17 munity benefits agreements under this sub18 section. 

19 (B) PUBLICATION.—The Secretary of En20 ergy shall develop and, not later than 5 months 

21 after the date of enactment of this Act, publish 

22 on the platform established under this sub23 section guidelines and required inclusions for 

24 community benefits plans and guidelines and 

25 required inclusions for community benefits 


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1 agreements under this subsection. In developing 

2 such guidelines and required inclusions, the 

3 Secretary shall take into consideration any in4 formation solicited pursuant to subparagraph 

5 (A), guidance submitted by the advisory council 

6 under paragraph (1)(A), and any relevant infor7 mation from existing community benefits plan 

8 processes of the Department of Energy, includ9 ing for the Industrial Demonstrations Program 

10 of the Department of Energy. 

11 (C) UPDATES.—The Secretary of Energy 

12 may update the guidelines published under sub13 paragraph (B) as the Secretary determines ap14 propriate. 

15 (3) REQUIRED INCLUSIONS.—A community 

16 benefits plan required to be included in an applica17 tion under this section shall include the following: 

18 (A) A stakeholder analysis that— 

19 (i) identifies any community that is 

20 located in an area that is within a 25 mile 

21 radius of the applicable eligible facility, 

22 and members of such a community, that 

23 may be impacted by the applicable pro24 posed project or by operation of the appli25 cable eligible facility, including impacts on 


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1 social, economic, and environmental condi2 tions, including cumulative effects, and im3 pacts on members of such a community 

4 who are traditionally excluded from deci5 sion-making processes; and 

6 (ii) examines potential reasons for 

7 such exclusion, including community his8 tory and dynamics, including social, cul9 tural, environmental, economic, and polit10 ical landscapes. 

11 (B) Information on prior and ongoing ef12 forts by the applicant to engage local stake13 holder groups who may be impacted by the ap14 plicable proposed project or by operation of the 

15 applicable eligible facility. 

16 (C) A description of existing concerns im17 pacting communities described in subparagraph 

18 (A) that have already been identified through 

19 input to the advisory council and other govern20 ment tools or surveys that enable government 

21 agencies to understand the economic, social, en22 vironmental, and labor circumstances of these 

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1 search, media reports, citizen enforcement ac2 tions for permit violations, and public hearings. 

3 (D) A description of potential concerns im4 pacting communities described in subparagraph 

5 (A) emanating from the applicable proposed 

6 project or operation of the applicable eligible fa7 cility. 

8 (E) A description of benefits that the ap9 plicable eligible entity can deliver to commu10 nities described in subparagraph (A) that re11 flect the eligible entity’s understanding of such 

12 existing concerns and such potential concerns. 

13 (F) A strategy for— 

14 (i) sharing the descriptions under sub15 paragraphs (C), (D), and (E); 

16 (ii) disseminating the community ben17 efits plan; engaging with communities de18 scribed in subparagraph (A); and 

19 (iii) incorporating such communities’ 

20 feedback into any applicable community 

21 benefits agreement. 

22 (G) A strategy for reporting and verifying 

23 progress on delivering the benefits described in 

24 subparagraph (E) with communities described 

25 in subparagraph (A). 


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1 (H) A description of the resources that the 

2 eligible entity plans to provide to ensure the full 

3 participation of communities described in sub4 paragraph (A) in discussions with the eligible 

5 entity, including participation of members of 

6 such communities who are traditionally ex7 cluded from decision-making processes, includ8 ing providing facts regarding the potential im9 pacts of the proposed project and operation of 

10 the applicable eligible facility after completion 

11 of such project on such communities, monetary 

12 resources to compensate for members of the ap13 plicable community benefits group described in 

14 paragraph (6) for their time, experts who can 

15 interpret the information shared by the eligible 

16 entity and represent such communities’ perspec17 tives, and other support measures to facilitate 

18 engagement, such as providing childcare and 

19 food during discussions. 

20 (I) A commitment to, and a plan for how 

21 such eligible entity will, cover the costs of train22 ing and skills and knowledge acquisition for 

23 community liaisons focused on air quality moni24 toring and reduction of air pollution. 


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1 (J) A commitment to, and a plan for how 

2 such eligible entity will, regularly and actively 

3 engage with frontline communities and leaders 

4 to determine and develop legally binding com5 munity benefit agreements and report progress 

6 on its execution. 

7 (K) Any additional information the Sec8 retary of Energy determines appropriate based 

9 on the guidance submitted by the advisory 

10 council pursuant to paragraph (1). 

11 (4) CONSIDERATION.—The strength of a com12 munity benefits plan submitted pursuant to this sec13 tion, as determined by the Department of Energy 

14 Merit Reviewer process, shall constitute at least 20 

15 percent of the graded criteria in determining wheth16 er to award covered financial assistance under this 

17 section. 

18 (5) PLATFORM.— 

19 (A) ESTABLISHMENT.—The Secretary of 

20 Energy shall establish a platform to host the 

21 text of each— 

22 (i) community benefits plan submitted 

23 by an eligible entity awarded covered fi24 nancial assistance under this section; 


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1 (ii) memorandum of understanding 

2 described in paragraph (6); and 

3 (iii) final community benefits agree4 ment entered into pursuant to paragraph 

5 (7). 

6 (B) REDACTED INFORMATION.—The Sec7 retary of Energy may, on a case-by-case basis, 

8 redact confidential business information from 

9 the platform established under subparagraph 

10 (A). 

11 (6) MEMORANDUM OF UNDERSTANDING.— 

12 (A) IN GENERAL.—Not later than 6 

13 months after initial receipt of covered financial 

14 assistance under this section, an eligible entity 

15 awarded such covered financial assistance shall 

16 seek to enter into a memorandum of under17 standing with a community benefits group de18 scribed in subparagraph (C). 

19 (B) INCLUSIONS.—A memorandum of un20 derstanding under this paragraph shall include 

21 a commitment to enter into a community bene22 fits agreement in accordance with paragraph 

23 (7). 

24 (C) MEMBERSHIP OF COMMUNITY BENE25 FITS GROUP.—A community benefits group deVerDate Sep 11 2014 18:54 Sep 09, 2024 Jkt 049200 PO 00000 Frm 00038 Fmt 6652 Sfmt 6201 E:\BILLS\H9334.IH H9334

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1 scribed in this subparagraph shall include indi2 viduals who represent the communities identi3 fied in paragraph (3)(A), including members of 

4 such communities who are traditionally ex5 cluded from decision-making processes. 

6 (D) RECRUITMENT.—An eligible entity 

7 awarded covered financial assistance under this 

8 section shall recruit individuals described in 

9 subparagraph (C) to serve on a community ben10 efits group described in such subparagraph and 

11 publicize the opportunity for additional stake12 holders to self-identify and self-nominate to the 

13 community benefits group. 

14 (E) COMPENSATION.—Members of a com15 munity benefits group described in subpara16 graph (C) shall be remunerated for their time 

17 and receive resources in accordance with the eli18 gible entity’s community benefits plan. 

19 (7) COMMUNITY BENEFITS AGREEMENT.— 

20 (A) IN GENERAL.—Not later than one year 

21 after entering into a memorandum of under22 standing with a community benefits group in 

23 accordance with paragraph (6), an eligible enti24 ty awarded covered financial assistance under 

25 this section shall seek to enter into a legally 


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1 binding community benefits agreement with 

2 such community benefits group. 

3 (B) COMPENSATION AND EXPENSES.— 

4 (i) COMPENSATION.—Members of the 

5 community benefits group participating in 

6 negotiations of a community benefits 

7 agreement shall be remunerated for their 

8 time and receive resources that facilitate 

9 their engagement. Failure to enter into a 

10 community benefits agreement pursuant to 

11 this subsection shall not eliminate the obli12 gation of an eligible entity to reimburse 

13 the applicable community benefits group 

14 and any other member of the impacted 

15 community who is participating in such ne16 gotiations for their time engaging with the 

17 eligible entity. 

18 (ii) LEGAL REPRESENTATION.—A 

19 community benefits group described under 

20 subparagraph (A) shall select its own legal 

21 representation for all matters relating to a 

22 community benefits agreement, which will 

23 be paid for by the applicable eligible entity 

24 described in such subparagraph. 


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1 (C) MEDIATION REQUIRED.—Any dispute 

2 that cannot be resolved within a reasonable pe3 riod of time (as determined by the Secretary of 

4 Energy) between a community benefits group 

5 and eligible entity under this section shall be re6 solved through mediation with a mediator se7 lected by the community benefits group. 

8 (D) COMMUNITY LETTER.—If a commu9 nity benefits agreement is not entered into by 

10 the deadline under subparagraph (A), the appli11 cable eligible entity shall be required to submit 

12 to the Secretary of Energy a letter from the ap13 plicable community benefits group ascertaining 

14 good faith effort by the eligible entity in order 

15 for the eligible entity to remain eligible to re16 ceive covered financial assistance and extend 

17 the time allowed for negotiations with commu18 nity. In order for currently operating iron and 

19 steel facilities to remain eligible for covered fi20 nancial assistance, the Administrator of the En21 vironmental Protection Agency shall addition22 ally confirm through the Environmental Protec23 tion Agency’s modeling the emissions and co24 pollution reduction potential stipulated in this 

25 Act and the award decision. 


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1 (E) CONSEQUENCES FOR FAILURE TO AD2 HERE TO AGREEMENT.—Failure to enter into a 

3 community benefits agreement by the deadline 

4 under subparagraph (A) and to submit a letter 

5 pursuant to subparagraph (D), or failure to 

6 abide by a community benefits agreement en7 tered into pursuant to this subsection, shall re8 sult in the suspension of funding under this 

9 section. 

10 (i) DENIAL OF DOUBLE BENEFIT.— 

11 (1) Section 48C(f) of the Internal Revenue 

12 Code of 1986 is amended to read as follows: 

13 ‘‘(f) DENIAL OF DOUBLE BENEFIT.—A credit shall 

14 not be allowed under this section for any qualified invest15 ment— 

16 ‘‘(1) with respect to which any covered financial 

17 assistance was awarded under section 101 of the 

18 Steel Modernization Act of 2024, or 

19 ‘‘(2) for which a credit is allowed under section 

20 48, 48A, 48B, 48E, 45Q, or 45V.’’. 

21 (2) EFFECTIVE DATE.—The amendment made 

22 by this subsection shall apply to property placed in 

23 service after the date of the enactment of this Act. 

24 (j) LIMITATION.—Covered financial Assistance 

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1 struction, installation, use, or maintenance of equipment 

2 involved in the capture or sequestration of carbon oxides. 

3 (k) TERMINATION OF AWARDS.—The Secretary of 

4 Energy may not award covered financial assistance under 

5 this section after December 31, 2032. 

6 (l) AUTHORIZATION OF APPROPRIATIONS.—There is 

7 authorized to be appropriated to carry out this section 

8 $10,000,000,000. 

9 SEC. 102. CONTRACT FOR DIFFERENCES PILOT PROGRAM. 

10 (a) ESTABLISHMENT OF PILOT PROGRAM.—The Sec11 retary of Energy shall establish a pilot program to enter 

12 into contracts, on a competitive basis, with entities for 

13 payment of costs associated with the production or pur14 chase of near-zero emissions intensity steel. 

15 (b) SELECTION.— 

16 (1) MINIMUM NUMBER.—Not later than 10 

17 years after the date of enactment of this Act, the 

18 Secretary shall enter into at least 2 contracts under 

19 the pilot program established under this section, 

20 with each contract term for a period of no longer 

21 than 5 years. 

22 (2) DIRECT REDUCED IRON FURNACE.—At 

23 least one of the contracts entered into under para24 graph (1) shall be for payment of costs associated 

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1 sions intensity steel that is produced using a direct 

2 reduced iron furnace. 

3 (c) AMOUNT.—The amount of a payment, with re4 spect to near-zero emissions intensity steel described in 

5 subsection (a), to an entity with which the Secretary of 

6 Energy has entered into a contract under the pilot pro7 gram established under subsection (a) shall be— 

8 (1) the cost of such near-zero emissions inten9 sity steel that is produced or purchased; minus 

10 (2) the applicable fair market value, as deter11 mined by the Secretary of Energy, to produce or 

12 purchase an equal quantity of conventional steel. 

13 (d) WAGES AND PROJECT LABOR AGREEMENT RE14 QUIREMENTS.—An eligible entity that enters into a con15 tract under the pilot program established under this sec16 tion shall— 

17 (1) comply with the requirements under section 

18 101(c)(1)(J); and 

19 (2) with respect to any eligible facility for which 

20 the total estimated cost of the construction contract 

21 is $25,000,000 or more, comply with the require22 ments under section 101(c)(1)(K). 

23 (e) AUTHORIZATION OF APPROPRIATIONS.—There is 

24 authorized to be appropriated $500,000,000 to carry out 

25 this section. 


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1 SEC. 103. NEAR-ZERO EMISSIONS INTENSITY IRON PRODUC2 TION CREDIT. 

3 (a) IN GENERAL.—Subpart D of subchapter A of 

4 chapter 1 of the Internal Revenue Code of 1986 is amend5 ed by adding at the end the following new section: 

6 ‘‘SEC. 45BB. NEAR-ZERO EMISSIONS INTENSITY IRON PRO7 DUCTION CREDIT. 

8 ‘‘(a) IN GENERAL.—For purposes of section 38, in 

9 the case of an eligible taxpayer, the near-zero emissions 

10 intensity iron production credit for any taxable year is an 

11 amount equal to $89 per ton of near-zero emissions inten12 sity iron produced by the taxpayer at an eligible facility 

13 during such taxable year. 

14 ‘‘(b) LIMITATION.—The amount determined under 

15 subsection (a) with respect to iron produced at an eligible 

16 facility with respect to which a credit was allowed under 

17 section 38 by reason of subsection (a) for 10 prior taxable 

18 years shall be zero. 

19 ‘‘(c) DEFINITIONS.—For purposes of this section— 

20 ‘‘(1) ELIGIBLE TAXPAYER.—The term ‘eligible 

21 taxpayer’ means a taxpayer that— 

22 ‘‘(A) is not under the influence, control, or 

23 ownership of a foreign entity of concern (as de24 fined in section 108 of the Steel Modernization 

25 Act of 2024), 


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1 ‘‘(B) has, with respect to any eligible facil2 ity with respect to which a credit is determined 

3 under section 38 by reason of this section for 

4 a taxable year, fulfilled the following require5 ments at all times during such taxable year: 

6 ‘‘(i) The requirements described in 

7 paragraphs (1), (5), and (6) of section 

8 101(d) of the Steel Modernization Act of 

9 2024. 

10 ‘‘(ii) All requirements made applicable 

11 to any entity described in section 101(g) of 

12 the Steel Modernization Act of 2024. 

13 ‘‘(2) ELIGIBLE FACILITY; NEAR-ZERO EMIS14 SIONS INTENSITY IRON.—The terms ‘eligible facility’ 

15 and ‘near-zero emissions intensity iron’ have the 

16 meanings given such terms in section 108 of the 

17 Steel Modernization Act of 2024. 

18 ‘‘(d) NO DOUBLE BENEFIT.—The amount deter19 mined under subsection (a) with respect to any near-zero 

20 emissions intensity iron which was produced pursuant to 

21 a contract established under section 102 of the Steel Mod22 ernization Act of 2024 shall be zero. 

23 ‘‘(e) INFLATION ADJUSTMENT.—In the case of any 

24 taxable year beginning in a calendar year after 2024, there 


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1 shall be substituted for the dollar amount in subsection 

2 (a) an amount equal to the product of— 

3 ‘‘(1) such dollar amount, multiplied by 

4 ‘‘(2) the inflation adjustment factor for such 

5 calendar year determined under section 43(b)(3)(B) 

6 for such calendar year, determined by substituting 

7 ‘2023’ for ‘1990’. 

8 ‘‘(f) SUNSET.—This section shall not apply to taxable 

9 years beginning after December 31, 2045.’’. 

10 (b) CREDIT ALLOWED AS PART OF GENERAL BUSI11 NESS CREDIT.—Section 38(b) of such Code is amended 

12 by striking ‘‘plus’’ at the end of paragraph (40), by strik13 ing the period at the end of paragraph (41) and inserting 

14 ‘‘, and’’, and by adding at the end the following new para15 graph: 

16 ‘‘(42) in the case of an eligible taxpayer (as de17 fined in section 45BB(c)), the near-zero emissions 

18 intensity iron production credit determined under 

19 section 45BB(a).’’. 

20 (c) CLERICAL AMENDMENT.—The table of sections 

21 for subpart D of subchapter A of chapter 1 of such Code 

22 is amended by adding at the end the following new item: 

‘‘Sec. 45BB. Near-zero emissions intensity iron production credit.’’. 

23 (d) EFFECTIVE DATE.—The amendments made by 

24 this section shall apply to iron produced after the date 

25 of the enactment of this Act. 


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1 SEC. 104. GREEN IRON AND STEEL FACILITY ENERGY IN2 VESTMENT CREDITS. 

3 (a) IN GENERAL.—Subpart E of subchapter A of 

4 chapter 1 of the Internal Revenue Code of 1986 is amend5 ed by adding at the end the following new sections: 

6 ‘‘SEC. 48F. ON-SITE ZERO-EMISSION ENERGY INVESTMENT 

7 CREDIT. 

8 ‘‘(a) IN GENERAL.—In the case of an eligible tax9 payer, for purposes of section 46, the on-site zero-emission 

10 energy investment credit for any taxable year is an 

11 amount equal to 10 percent of the qualified investment 

12 for such taxable year. 

13 ‘‘(b) QUALIFIED INVESTMENT.— 

14 ‘‘(1) IN GENERAL.—The qualified investment 

15 with respect to any qualified facility for any taxable 

16 year is the sum of— 

17 ‘‘(A) the basis of any property placed in 

18 service by the taxpayer during the taxable 

19 year— 

20 ‘‘(i) which is— 

21 ‘‘(I) tangible personal property, 

22 or 

23 ‘‘(II) other tangible property (not 

24 including a building or its structural 

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1 erty is used as an integral part of the 

2 qualified facility, 

3 ‘‘(ii) with respect to which deprecia4 tion (or amortization in lieu of deprecia5 tion) is allowable, and 

6 ‘‘(iii)(I) the construction, reconstruc7 tion, or erection of which is completed by 

8 the taxpayer, or 

9 ‘‘(II) which is acquired by the tax10 payer if the original use of such property 

11 commences with the taxpayer, and 

12 ‘‘(B) the basis of any qualified property 

13 placed in service by the taxpayer during such 

14 taxable year which is part of a facility described 

15 in subsection (c). 

16 ‘‘(2) CERTAIN QUALIFIED PROGRESS EXPENDI17 TURES RULES MADE APPLICABLE.—Rules similar to 

18 the rules of subsections (c)(4) and (d) of section 46 

19 (as in effect on the day before the enactment of the 

20 Revenue Reconciliation Act of 1990) shall apply for 

21 purposes of this section. 

22 ‘‘(3) LIMITATIONS.— 

23 ‘‘(A) CREDIT LIMITED TO ALLOCATED

24 AMOUNT.—The amount which is treated as the 

25 qualified investment for all taxable years with 


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1 respect to any qualifying advanced energy 

2 project shall not exceed the amount designated 

3 by the Secretary as eligible for the credit under 

4 this section. 

5 ‘‘(B) LIMITATION ON AGGREGATE FINAN6 CIAL ASSISTANCE.—The amount which is treat7 ed as the qualified investment for all taxable 

8 year with respect to any qualified facility 

9 project shall not exceed the amount that is 

10 equal to— 

11 ‘‘(i) $500,000,000, minus 

12 ‘‘(ii) the sum of— 

13 ‘‘(I) any financial assistance pro14 vided to such project pursuant to the 

15 Steel Modernization Act of 2024, 

16 ‘‘(II) any credits allowed for any 

17 taxable year relating to such project 

18 under this section, plus 

19 ‘‘(III) any credits allowed for any 

20 taxable year relating to such project 

21 under section 48G. 

22 ‘‘(c) QUALIFIED FACILITY PROJECT.—In this sec23 tion, the term ‘qualified facility project’ means a project, 

24 any portion of the qualified investment of which is cer25 tified by the Secretary under subsection (e) as eligible for 


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1 a credit under this section, which re-equips, expands, or 

2 establishes a zero-carbon electricity or heat generating or 

3 storage facility which is located on-site with an eligible fa4 cility (as such term is defined in section 108 of the Steel 

5 Modernization Act of 2024). 

6 ‘‘(d) ELIGIBLE TAXPAYER.—In this section, the term 

7 ‘eligible taxpayer’ means a taxpayer that— 

8 ‘‘(1) is not under the influence, control, or own9 ership of a foreign entity of concern (as defined in 

10 section 108 of the Steel Modernization Act of 2024); 

11 and 

12 ‘‘(2) has, with respect to any qualified facility 

13 project, met the requirements described in section 

14 101(d)(5) and (6) of the Steel Modernization Act of 

15 2024. 

16 ‘‘(e) ON-SITE ZERO-EMISSION ENERGY PROJECT

17 PROGRAM.— 

18 ‘‘(1) ESTABLISHMENT.— 

19 ‘‘(A) IN GENERAL.—Not later than 180 

20 days after the date of enactment of this section, 

21 the Secretary shall establish an on-site zero22 emission energy project program to consider 

23 and award certifications for qualified invest24 ments eligible for credits under this section to 

25 qualified facility project sponsors. 


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1 ‘‘(B) LIMITATION.—The total amount of 

2 credits that may be allocated under the pro3 gram shall not exceed $500,000,000. 

4 ‘‘(2) CERTIFICATION.— 

5 ‘‘(A) APPLICATION PERIOD.—Each appli6 cant for certification under this paragraph shall 

7 submit an application containing such informa8 tion as the Secretary may require during the 2- 

9 year period beginning on the date the Secretary 

10 establishes the program under paragraph (1). 

11 ‘‘(B) TIME TO MEET CRITERIA FOR CER12 TIFICATION.—Each applicant for certification 

13 shall have 1 year from the date of acceptance 

14 by the Secretary of the application during 

15 which to provide to the Secretary evidence that 

16 the requirements of the certification have been 

17 met. 

18 ‘‘(C) PERIOD OF ISSUANCE.—An applicant 

19 which receives a certification shall have 3 years 

20 from the date of issuance of the certification in 

21 order to place the project in service and if such 

22 project is not placed in service by that time pe23 riod, then the certification shall no longer be 

24 valid. 


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1 ‘‘(3) SELECTION CRITERIA.—In determining 

2 which qualified facility projects to certify under this 

3 section, the Secretary— 

4 ‘‘(A) shall take into consideration only 

5 those projects where there is a reasonable ex6 pectation of commercial viability, and 

7 ‘‘(B) shall take into consideration which 

8 projects— 

9 ‘‘(i) will provide the greatest domestic 

10 job creation (both direct and indirect) dur11 ing the credit period, 

12 ‘‘(ii) will provide the greatest net im13 pact in avoiding or reducing air pollutants 

14 or anthropogenic emissions of greenhouse 

15 gases, 

16 ‘‘(iii) have the greatest potential for 

17 technological innovation and commercial 

18 deployment, 

19 ‘‘(iv) have the lowest levelized cost of 

20 generated or stored energy, or 

21 ‘‘(v) of measured reduction in energy 

22 consumption or greenhouse gas emission 

23 (based on costs of the full supply chain), 

24 ‘‘(C) have the shortest project time from 

25 certification to completion, and 


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1 ‘‘(D) shall take into consideration only 

2 those projects that have met the requirements 

3 described in section 101(d)(5) and (6) of the 

4 Steel Modernization Act of 2024. 

5 ‘‘(4) REVIEW AND REDISTRIBUTION.— 

6 ‘‘(A) REVIEW.—Not later than 4 years 

7 after the date of enactment of this section, the 

8 Secretary shall review the credits allocated 

9 under this section as of such date. 

10 ‘‘(B) REDISTRIBUTION.—The Secretary 

11 may reallocate credits awarded under this sec12 tion if the Secretary determines that— 

13 ‘‘(i) there is an insufficient quantity 

14 of qualifying applications for certification 

15 pending at the time of the review, or 

16 ‘‘(ii) any certification made pursuant 

17 to paragraph (2) has been revoked pursu18 ant to paragraph (2)(B) because the 

19 project subject to the certification has been 

20 delayed as a result of third party opposi21 tion or litigation to the proposed project. 

22 ‘‘(C) REALLOCATION.—If the Secretary de23 termines that credits under this section are 

24 available for reallocation pursuant to the re25 quirements set forth in paragraph (2), the SecVerDate Sep 11 2014 18:54 Sep 09, 2024 Jkt 049200 PO 00000 Frm 00054 Fmt 6652 Sfmt 6201 E:\BILLS\H9334.IH H9334

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1 retary is authorized to conduct an additional 

2 program for applications for certification. 

3 ‘‘(5) DISCLOSURE OF ALLOCATIONS.—The Sec4 retary shall, upon making a certification under this 

5 subsection, publicly disclose the identity of the appli6 cant and the amount of the credit with respect to 

7 such applicant. 

8 ‘‘(f) INFLATION ADJUSTMENT.—In the case of any 

9 taxable year beginning in a calendar year after 2024, there 

10 shall be substituted for the dollar amount in subsection 

11 (b)(3)(B)(i) an amount equal to the product of— 

12 ‘‘(1) such dollar amount, multiplied by 

13 ‘‘(2) the inflation adjustment factor for such 

14 calendar year determined under section 43(b)(3)(B) 

15 for such calendar year, determined by substituting 

16 ‘2023’ for ‘1990’. 

17 ‘‘(g) SUNSET.—This section shall not apply to tax18 able years beginning after December 31, 2045. 

19 ‘‘SEC. 48G. IRON AND STEEL GREEN ENERGY AND GRID 

20 SYSTEM UPGRADE INVESTMENT CREDIT. 

21 ‘‘(a) IN GENERAL.—In the case of an eligible tax22 payer, for purposes of section 46, the iron and steel green 

23 energy and grid system upgrade investment credit for any 

24 taxable year is an amount equal to 10 percent of the quali25 fied investment for such taxable year. 


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1 ‘‘(b) DEFINITIONS.—For purposes of this section— 

2 ‘‘(1) ELIGIBLE TAXPAYER.—In this section, the 

3 term ‘eligible taxpayer’ means a taxpayer that— 

4 ‘‘(A) is not under the influence, control, or 

5 ownership of a foreign entity of concern (as de6 fined in section 108 of the Steel Modernization 

7 Act of 2024), and 

8 ‘‘(B) has, with respect to any qualified 

9 interconnection property and qualified property, 

10 met the requirements described in section 

11 101(d)(5) and (6) of the Steel Modernization 

12 Act of 2024. 

13 ‘‘(2) QUALIFIED INVESTMENT.—The qualified 

14 investment for any taxable year is the sum of— 

15 ‘‘(A) the amount of any expenditures 

16 which are paid or incurred by the taxpayer for 

17 qualified interconnection property— 

18 ‘‘(i) placed in service during the tax19 able year of the taxpayer, and 

20 ‘‘(ii) properly chargeable to capital ac21 count of the taxpayer, and 

22 ‘‘(B) the basis of any qualified property 

23 placed in service by the taxpayer during such 

24 taxable year which is part of a qualified facility. 


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1 ‘‘(3) QUALIFIED INTERCONNECTION PROP2 ERTY.—The term ‘qualified interconnection prop3 erty’ means qualified interconnection property (as 

4 such term is defined in section 48(a)(8)(B)) which 

5 is necessary to transmit energy to an eligible facility. 

6 ‘‘(4) QUALIFIED PROPERTY.—The term ‘quali7 fied property’ has the meaning given such term in 

8 section 48E(b)(2). 

9 ‘‘(5) QUALIFIED FACILITY.—The term ‘quali10 fied facility’ means a qualified facility (as defined in 

11 section 48E(B)(3) except that such paragraph shall 

12 be applied without regard to subparagraph (C) 

13 thereof) which sells energy attribution certificates to 

14 an eligible facility. 

15 ‘‘(6) ELIGIBLE FACILITY.—The term ‘eligible 

16 facility’ has the meaning given such term in section 

17 108 of the Steel Modernization Act of 2024. 

18 ‘‘(c) SUNSET.—This section shall not apply to taxable 

19 years beginning after December 31, 2045.’’. 

20 (b) CONFORMING AMENDMENTS.— 

21 (1) Section 46 of such Code is amended by 

22 striking ‘‘and’’ at the end of paragraph (6), by strik23 ing the period at the end of paragraph (7) and in24 serting a comma, and by adding at the end the fol25 lowing new paragraphs: 


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1 ‘‘(8) the on-site zero-emission energy invest2 ment credit, and 

3 ‘‘(9) the iron and steel green energy and grid 

4 system upgrade investment credit.’’. 

5 (2) Section 49(a)(1)(C) of such Code is amend6 ed by striking ‘‘and’’ at the end of clause (vii), by 

7 striking the period at the end of clause (viii) and in8 serting a comma, and by adding at the end the fol9 lowing new clauses: 

10 ‘‘(ix) the basis of any qualified prop11 erty which is part of a qualified facility 

12 under section 48F, and 

13 ‘‘(x) the basis of any qualified inter14 connection property and any qualified 

15 property which is part of a qualified facil16 ity under section 48G.’’. 

17 (c) CLERICAL AMENDMENT.—The table of sections 

18 for subpart E of subchapter A of chapter 1 of such Code 

19 is amended by inserting after the item relating to section 

20 48E the following new items: 

‘‘Sec. 48F. On-site zero-emission energy investment credit. 

‘‘Sec. 48G. Iron and steel green energy and grid system upgrade investment 

credit.’’. 

21 (d) EFFECTIVE DATE.—The amendments made by 

22 this section shall apply to property placed in service after 

23 the date of the enactment of this Act. 


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1 SEC. 105. STUDY AND REPORT ON DEMAND GENERATION. 

2 The Secretary of Energy shall conduct a study, and 

3 publish a report on the findings of such study on a publicly 

4 accessible website, on opportunities for new Federal, 

5 State, and local policies, regulations, and other measures 

6 to help stimulate demand for near-zero emissions intensity 

7 iron and near-zero emissions intensity steel, including de8 mand related to shipbuilding, railroads, and offshore wind 

9 electricity generation. 

10 SEC. 106. REPORT ON STRATEGY TO BRING ZERO-GREEN11 HOUSE GAS EMISSIONS ELECTRICITY TO THE 

12 ELECTRIC GRID. 

13 Not later than 1 year after the date of enactment 

14 of this Act, the Secretary of Energy shall submit to Con15 gress a report describing— 

16 (1) a whole of Government strategy to— 

17 (A) increase the supply of zero-greenhouse 

18 gas emissions electricity on the electric grid; 

19 (B) improve electricity transmission; 

20 (C) upgrade regional energy distribution 

21 systems; and 

22 (D) ensure industrial entities can afford 

23 zero-greenhouse gas emissions electricity; 

24 (2) the amount of steel, aluminum, and other 

25 materials produced in the United States that would 

26 be needed to implement such strategy; and 


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1 (3) additional investments and policies rec2 ommended to be able to finish and fabricate mate3 rials described in paragraph (2) domestically. 

4 SEC. 107. PROHIBITION. 

5 None of the funds authorized to be appropriated or 

6 otherwise made available pursuant to this Act may be 

7 made available— 

8 (1) to construct, modify, retrofit, or otherwise 

9 be used for a facility that is not located in the 

10 United States; or 

11 (2) to any entity that is partly or wholly owned 

12 by— 

13 (A) the Government of the People’s Repub14 lic of China; or 

15 (B) a foreign entity of concern. 

16 SEC. 108. DEFINITIONS. 

17 In this title: 

18 (1) ADVANCED INDUSTRIAL IRON TECH19 NOLOGY.—The term ‘‘advanced industrial iron tech20 nology’’ means a technology related to iron produc21 tion that is directly involved in an industrial process, 

22 and designed to reduce, or results in a reduction of, 

23 greenhouse gas emissions, as determined by the Sec24 retary of Energy. 


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1 (2) ADVANCED INDUSTRIAL STEEL TECH2 NOLOGY.—The term ‘‘advanced industrial steel tech3 nology’’ means a technology related to steel produc4 tion that is directly involved in an industrial process, 

5 and designed to reduce, or results in a reduction of, 

6 greenhouse gas emissions, as determined by the Sec7 retary of Energy. 

8 (3) CLEAN HYDROGEN.— 

9 (A) IN GENERAL.—The term ‘‘clean hydro10 gen’’ means hydrogen that is produced through 

11 a process that results in a lifecycle greenhouse 

12 gas emissions rate of not greater than 0.45 

13 kilograms of carbon dioxide equivalent per kilo14 gram of hydrogen. 

15 (B) LIFECYCLE GREENHOUSE GAS EMIS16 SIONS.—For purposes of subparagraph (A), the 

17 term ‘‘lifecycle greenhouse gas emissions’’ shall 

18 only include emissions through the point of pro19 duction, as determined under the most recent 

20 Greenhouse gases, Regulated Emissions, and 

21 Energy use in Transportation model (commonly 

22 referred to as the ‘‘GREET model’’) developed 

23 by Argonne National Laboratory, or a successor 

24 model (as determined by the Secretary of En25 ergy). 


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1 (4) COVERED FINANCIAL ASSISTANCE.—The 

2 term ‘‘covered financial assistance’’ includes a grant, 

3 rebate, direct loan, cooperative agreement, low- to 

4 no-interest loans, and a loan guarantee. 

5 (5) EARLY-STAGE.—The term ‘‘early-stage’’ 

6 means, with respect to a technology, that the tech7 nology has not yet been proven viable at scale. 

8 (6) ELIGIBLE ENTITY.—The term ‘‘eligible enti9 ty’’ means the owner or operator of an eligible facil10 ity. 

11 (7) ELIGIBLE FACILITY.—The term ‘‘eligible fa12 cility’’ means a domestic, non-Federal, nonpower in13 dustrial or manufacturing facility engaged in pro14 duction processes or research and development for 

15 iron, steel, steel mill products, or other industrial 

16 processes related to iron or steel-making, as deter17 mined by the Secretary of Energy. 

18 (8) ENVIRONMENTAL JUSTICE COMMUNITY.— 

19 The term ‘‘environmental justice community’’ means 

20 a community with significant representation of com21 munities of color, low-income communities, or Tribal 

22 and indigenous communities, that experiences, or is 

23 at risk of experiencing, higher or more adverse 

24 human health or environmental effects than other 

25 communities. 


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1 (9) EXISTING OR LEGACY IRON OR STEEL-MAK2 ING COMMUNITY.—The term ‘‘existing or legacy iron 

3 or steel-making community’’ means— 

4 (A) an area that is within a 25 mile radius 

5 of an iron or steel production facility— 

6 (i) that is producing iron or steel as 

7 of the date of enactment of this Act; or 

8 (ii) that has produced iron or steel 

9 anytime since January 1, 1985; or 

10 (B) any community within a 25 mile ra11 dius of a location in which metallurgical coke, 

12 or metallurgical coal destined to be metallur13 gical coke, has been produced, mined, or proc14 essed at any time since January 1, 1985. 

15 (10) FOREIGN ENTITY OF CONCERN.—The 

16 term ‘‘foreign entity of concern’’ has the meaning 

17 given such term in section 40207(a)(5) of the Infra18 structure Investment and Jobs Act (42 U.S.C. 

19 18741(a)(5)). 

20 (11) FRONTLINE COMMUNITY.—The term 

21 ‘‘frontline community’’ means— 

22 (A) a low-income community; 

23 (B) an environmental justice community; 

24 or 


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1 (C) a disadvantaged community (as de2 fined by the Justice40 Initiative established 

3 under section 223 of Executive Order 14008, ti4 tled ‘‘Tackling the Climate Crisis at Home and 

5 Abroad’’). 

6 (12) MINE-TO-METAL BASIS.—The term ‘‘mine7 to-metal basis’’ means the greenhouse gas account8 ing rule under criterion 10.4, ‘‘Determination of 

9 site-level GHG emissions for the purpose of report10 ing GHG emissions intensity when producing crude 

11 steel for determining a site’s greenhouse gas emis12 sions’’, under Responsible Steel International Pro13 duction Standard Version 2.1, effective from May 

14 21, 2024. 

15 (13) NEAR-ZERO EMISSIONS INTENSITY IRON.— 

16 The term ‘‘near-zero emissions intensity iron’’ 

17 means iron that has an emissions intensity of 0.35 

18 tons of carbon dioxide equivalent per ton of iron or 

19 less, with greenhouse gas emissions determined on a 

20 mine-to-metal basis. 

21 (14) NEAR-ZERO EMISSIONS INTENSITY

22 STEEL.—The term ‘‘near-zero emissions intensity 

23 steel’’ means steel that has an emissions intensity 

24 that is equal to or less than progress level 4 emis25 sions intensity that is determined, using a sliding 


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1 scale of emissions intensity based on scrape share of 

2 metallics input, in accordance with criterion 10.6 of 

3 Responsible Steel International Production Standard 

4 Version 2.1, effective from May 21, 2024, and with 

5 greenhouse gas emissions determined on a mine-to6 metal basis. 

7 TITLE II—TARIFF ON DIRTY 

8 IMPORTED STEEL 

9 SEC. 201. CALCULATION OF EMISSIONS INTENSITY. 

10 (a) DOMESTIC EMISSIONS INTENSITY REPORT.—Not 

11 later than June 30, 2026, and every 2 years thereafter, 

12 the United States International Trade Commission shall 

13 transmit to the President and publish a report with re14 spect to the following: 

15 (1) The average greenhouse gas emissions in16 tensity of domestic iron and steel production, ex17 pressed in tons of CO2-e per ton of iron or steel, re18 spectively. 

19 (2) The average greenhouse gas emissions in20 tensity of the domestic manufacture of covered iron 

21 and steel product categories and finished goods pro22 duced using covered iron and steel product cat23 egories, expressed in tons of CO2-e per ton of iron 

24 or steel, respectively. 


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1 (3) An estimate the 90th emissions intensity 

2 percentiles for all domestically manufactured re3 ported product categories. 

4 (b) INTERNATIONAL EMISSIONS INTENSITY RE5 PORT.— 

6 (1) IN GENERAL.—No later than June 30, 

7 2026, and every 2 years thereafter, the United 

8 States International Trade Commission shall trans9 mit to the President and publish a report with re10 spect to the emissions intensity of the manufacture 

11 of covered iron and steel products in all foreign mar12 kets from which the United States imported in ex13 cess of $200,000,000 of iron and steel products, in14 cluding finished goods, in any 1 of the preceding 5 

15 years. The emissions intensity with respect to such 

16 covered products shall be determined based on— 

17 (A) the emissions intensity of the general 

18 economy of the country of origin of covered 

19 products as compared to the emissions intensity 

20 of the United States economy; or 

21 (B) if the Commission determines that 

22 transparent, verifiable, and reliable information 

23 is available with respect to the iron and steel in24 dustry in the country of origin of covered prodVerDate Sep 11 2014 18:54 Sep 09, 2024 Jkt 049200 PO 00000 Frm 00066 Fmt 6652 Sfmt 6201 E:\BILLS\H9334.IH H9334

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1 ucts and that the country of origin is a trans2 parent market economy— 

3 (i) the emissions intensity of the iron 

4 and steel industry in such country; or 

5 (ii) if sufficiently disaggregated infor6 mation is available, the emissions intensity 

7 of the manufacture of specific covered 

8 product in such country. 

9 (2) AGGREGATION RULE.—For purposes of this 

10 subsection, the average emissions intensity with re11 spect to the production of a covered iron or steel 

12 product shall be determined based upon greenhouse 

13 gas emission and production data from all facilities 

14 which produce such good which are under common 

15 control of the manufacturer of such good, including 

16 any subsidiary, parent company, or joint venture of 

17 such manufacturer within the country of origin. 

18 (3) INPUTS.—With respect to any covered iron 

19 or steel product which is imported into the United 

20 States and for which other covered iron or steel 

21 products were used as inputs by the manufacturer in 

22 the production of the imported product, any green23 house gas emissions associated with the production 

24 of the other inputs shall be included in the deterVerDate Sep 11 2014 18:54 Sep 09, 2024 Jkt 049200 PO 00000 Frm 00067 Fmt 6652 Sfmt 6201 E:\BILLS\H9334.IH H9334

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1 mination of the greenhouse gas emissions associated 

2 with production of the imported product. 

3 (4) EMISSIONS INTENSITY OF THE GENERAL

4 ECONOMY.—For purposes of this subsection, with re5 spect to any country, the emissions intensity of the 

6 general economy of such country shall be an amount 

7 equal to the quotient of— 

8 (A) the greenhouse gas emissions of such 

9 country for the most recent year for which the 

10 President determines there is reliable informa11 tion, divided by 

12 (B) the gross domestic product of such 

13 country for such most recent year. 

14 (5) RECOMMENDED EMISSIONS INTENSITY TAR15 IFF.—The Commission shall also include in each re16 port published pursuant to paragraph (1) rec17 ommendations with respect to each applicable for18 eign market of the tariff rate to impose with respect 

19 to the importation of covered products from such 

20 market in order to compensate for any greater emis21 sions intensity of production in such market. 

22 (c) PETITION.—In the case of any entity which im23 ports a covered iron or steel product for which the Com24 mission determines the emissions intensity under sub25 section (b)(1)(A) or subsection (b)(1)(B)(i), such entity 


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1 may submit to the President a petition to determine any 

2 tariff pursuant to section 202 based on the average emis3 sions intensity with respect to the production of the spe4 cific covered product by the manufacturer, including such 

5 information as the President may determine necessary to 

6 calculate such average emissions intensity. 

7 SEC. 202. IMPOSITION OF EMISSIONS INTENSITY TARIFF. 

8 (a) IN GENERAL.— 

9 (1) COVERED PRODUCTS.—In the case of any 

10 covered iron or steel product imported into the 

11 United States or withdrawn from warehouse for con12 sumption on or after the date that is 90 days after 

13 the publication of the first report required by section 

14 201(a), the President shall impose an additional tar15 iff— 

16 (A) pursuant to the recommendation with 

17 respect to the applicable foreign market in the 

18 most recent report published pursuant to sec19 tion 201(b)); or 

20 (B) in such other amount as the President 

21 may determine appropriate to carry out the 

22 purposes of this title. 

23 (2) FINISHED GOODS.—In the case of any fin24 ished good which is imported into the United States 

25 on or after January 1, 2027, the President shall imVerDate Sep 11 2014 18:54 Sep 09, 2024 Jkt 049200 PO 00000 Frm 00069 Fmt 6652 Sfmt 6201 E:\BILLS\H9334.IH H9334

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1 pose an additional tariff in an amount equal to the 

2 sum of the rates determined in accordance with 

3 paragraph (1) with respect to each covered iron or 

4 steel product that is a component part of such fin5 ished good. 

6 (3) COVERED PRODUCTS FROM NONMARKET

7 ECONOMIES.—For any covered iron or steel product 

8 imported from a country the Commission deter9 mines, pursuant to section 201(b)(1)(B), is not a 

10 transparent market economy, the tariff imposed 

11 shall be double the amount calculated pursuant to 

12 paragraph (1) or paragraph (2). 

13 (b) CARBON CLUBS WAIVER.—The President may 

14 waive the tariff otherwise imposed under this section with 

15 respect to covered iron and steel products imported from 

16 a country if the President determines that the country— 

17 (1) has implemented policies which impose ex18 plicit costs on the emission of greenhouse gases 

19 which are materially similar to the charges imposed 

20 pursuant to the provisions of this section; 

21 (2) imposes such costs on similar product cat22 egories and based on the emissions intensity of pro23 duction in the country of origin; 

24 (3) achieves an emissions intensity for the do25 mestic manufacture of covered product categories 


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1 that does not exceed 150 percent of the emissions 

2 intensity of manufacture in the United States; and 

3 (4) waives any tariffs that would be imposed 

4 pursuant to such emissions policy on products from 

5 the United States. 

6 (c) MELTED AND POURED STANDARD.—If a covered 

7 iron or steel product imported into the United States is 

8 melted or poured in a third country, the tariff imposed 

9 under this section shall be determined based on the emis10 sions intensity of the third country rather than the coun11 try from which the product is imported, unless the Presi12 dent has approved a petition submitted pursuant to sec13 tion 201(c) with respect to the importation of such prod14 uct. 

15 SEC. 203. DEFINITIONS. 

16 In this title: 

17 (1) ADMINISTRATOR.—The term ‘‘Adminis18 trator’’ means the Administrator of the Environ19 mental Protection Agency. 

20 (2) CO2-e.— 

21 (A) IN GENERAL.—Subject to subpara22 graph (B), the term ‘‘CO2-e’’ means, with re23 spect to a greenhouse gas, the quantity of such 

24 gas that has a global warming potential equiva25 lent to 1 metric ton of carbon dioxide, as deterVerDate Sep 11 2014 18:54 Sep 09, 2024 Jkt 049200 PO 00000 Frm 00071 Fmt 6652 Sfmt 6201 E:\BILLS\H9334.IH H9334

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1 mined pursuant to table A–1 of subpart A of 

2 part 98 of title 40, Code of Federal Regula3 tions, as in effect on the date of the enactment 

4 of this subchapter. 

5 (B) METHANE.—In the case of methane, 

6 the term ‘‘CO2-e’’ means the quantity of meth7 ane that has the same global warming potential 

8 over a 20-year period as 1 metric ton of carbon 

9 dioxide, as determined by the Administrator. 

10 (3) COVERED IRON PRODUCT; COVERED STEEL

11 PRODUCT.— 

12 (A) IN GENERAL.—The terms ‘‘covered 

13 iron product’’ and ‘‘covered steel product’’ are 

14 defined as follows: 

15 (i) Articles classifiable under the fol16 lowing headings of the Harmonized Tariff 

17 Schedule of the United States: 

18 (I) 7206.10 through 7216.50. 

19 (II) 7216.99 through 7301.10. 

20 (III) 7302.10. 

21 (IV) 7302.40 through 7302.90. 

22 (V) 7304.10 through 7306.90. 

23 (ii) Subject to subparagraph (B), any 

24 other iron or steel article the President de25 termines is imported from a country with 


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1 a greater emissions intensity than the 

2 United States, if the President directs and 

3 the Commission subsequently includes— 

4 (I) an analysis of the domestic 

5 production of such product in the 

6 most recent study published in accord7 ance with section 201(a); and 

8 (II) an analysis of the foreign 

9 production of such product in the 

10 most recent study published in accord11 ance with section 201(b). 

12 (B) EXCLUSIONS.—A product otherwise 

13 meeting the definition under subparagraph (A) 

14 shall not be treated as a covered iron product 

15 or a covered steel product, as applicable, under 

16 this title if— 

17 (i) a like or similar article is not pro18 duced in the United States; 

19 (ii) the product is produced in (includ20 ing as a component of a finished good) and 

21 imported from a relatively least developed 

22 country (as described in section 124 of the 

23 Foreign Assistance Act of 1961 (22 U.S.C. 

24 2151v)) that does not produce at least 3 


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1 percent of total global exports, by value, of 

2 the product; or 

3 (iii) the product is imported from a 

4 country during any period in which a waiv5 er is in effect with respect to such country 

6 pursuant to section 202(b). 

7 (4) FINISHED GOOD.— 

8 (A) IN GENERAL.—The term ‘‘finished 

9 good’’ means any good which— 

10 (i) for calendar years 2027 and 

11 2028— 

12 (I) contains greater than 500 

13 pounds of any combination of any cov14 ered iron or steel products, or 

15 (II) was produced from inputs of 

16 any combination of covered iron or 

17 steel products, the value of which 

18 comprise more than 90 percent of the 

19 total value of the material inputs in20 volved in the production of such good, 

21 (ii) for calendar years 2029 and 

22 2030— 

23 (I) contains greater than 100 

24 pounds of any combination of any cov25 ered iron or steel products, or 


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1 (II) was produced from inputs of 

2 any combination of covered iron or 

3 steel products, the value of which 

4 comprise more than 75 percent of the 

5 total value of the material inputs in6 volved in the production of such good, 

7 and 

8 (iii) for any calendar year after cal9 endar year 2030— 

10 (I) contains greater than such 

11 amount as is determined by the Sec12 retary (as determined in coordination 

13 with the relevant parties, and which 

14 shall not be greater than 100 pounds) 

15 of any combination of any covered 

16 iron or steel products, or 

17 (II) was produced from inputs of 

18 any combination of covered iron or 

19 steel products, the value of which 

20 comprise more than such percentage 

21 as is determined by the Secretary (as 

22 determined in coordination with the 

23 relevant parties, and which shall not 

24 be greater than 75 percent) of the 


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1 total value of the material inputs in2 volved in the production of such good. 

3 (B) EXCEPTION.—The term ‘‘finished 

4 good’’ shall not include any waste or scrap 

5 product that is imported or exported. 

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

7 gas’’ has the meaning given such term under section 

8 211(o)(1)(G) of the Clean Air Act, as in effect on 

9 the date of the enactment of this subchapter. 

10 (6) GREENHOUSE GAS EMISSIONS.—The term 

11 ‘‘greenhouse gas emissions’’ means the amount of 

12 greenhouse gases, expressed in metric tons of CO2- 

13 e, which were emitted to the atmosphere. 

14 (7) RELEVANT PARTIES.—The term ‘‘relevant 

15 parties’’ means— 

16 (A) the Administrator, 

17 (B) the Secretary of Energy, 

18 (C) the Secretary of Commerce, 

19 (D) the United States Trade Representa20 tive, and 

21 (E) the Chair and Vice Chair of the 

22 United States International Trade Commission. 


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•HR 9334 IH

1 TITLE III—EXPENDITURE OF 

2 REVENUES 

3 SEC. 301. ADMINISTRATIVE EXPENSES. 

4 For fiscal year 2025 and each subsequent fiscal year, 

5 there is appropriated, out of any funds in the Treasury 

6 not otherwise appropriated, to the Secretary of Energy an 

7 amount equal to 75 percent of the total amount collected 

8 in the preceding fiscal year pursuant to the tariff imposed 

9 under section 202, to be made available to carry out this 

10 Act. 

11 SEC. 302. ECONOMIC SUPPORT FUND. 

12 For fiscal year 2025 and each subsequent fiscal year, 

13 in addition to amounts otherwise available, there is appro14 priated, out of any funds in the Treasury not otherwise 

15 appropriated, an amount equal to 25 percent of the total 

16 amount collected in the preceding fiscal year pursuant to 

17 the tariff imposed under section 202, to be made available 

18 to carry out programs, projects, and activities authorized 

19 pursuant to section 531 of the Foreign Assistance Act of 

20 1961 (22 U.S.C. 2346; referred to as the ‘‘economic sup21 port fund’’) to provide bilateral and multilateral assistance 

22 to foreign countries to support decarbonization programs 

23 and other climate and clean energy programs. 

Æ 


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