```

[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9230 Introduced in House (IH)]

<DOC>

118th CONGRESS
  2d Session
                                H. R. 9230

To amend the Clean Air Act to establish a program to annually phasedown 
           greenhouse gas emissions, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             July 30, 2024

  Mr. Tonko introduced the following bill; which was referred to the 
Committee on Energy and Commerce, and in addition to the Committees on 
 Ways and Means, Education and the Workforce, and Science, Space, and 
Technology, for a period to be subsequently determined by the Speaker, 
 in each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL

 
To amend the Clean Air Act to establish a program to annually phasedown 
           greenhouse gas emissions, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Climate Pollution 
Standard and Community Investment Act of 2024''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                   TITLE I--NATIONAL CLIMATE RESPONSE

Sec. 101. Climate pollution reduction certainty.
Sec. 102. Clean Energy Rebate Program.
Sec. 103. Worker and Community Assistance Fund.
Sec. 104. Cleaner Air Community Fund.
Sec. 105. Negative Emissions Activities Fund.
Sec. 106. Energy Innovation Fund.
Sec. 107. Emission allowance market oversight.
Sec. 108. Direct hire authority for implementation of this title.
               TITLE II--WORKER AND COMMUNITY ASSISTANCE

Sec. 201. Definitions.
Sec. 202. Energy and economic transition impact studies.
Sec. 203. Office of Energy and Economic Transition.
Sec. 204. Interagency Energy and Economic Transition Task Force.
Sec. 205. Stakeholder Advisory Committee.
Sec. 206. Assistance for adversely affected communities.
Sec. 207. Community-Based Transition Hub program.
Sec. 208. Assistance for adversely affected workers.

                   TITLE I--NATIONAL CLIMATE RESPONSE

SEC. 101. CLIMATE POLLUTION REDUCTION CERTAINTY.

    (a) In General.--The Clean Air Act (42 U.S.C. 7401 et seq.) is 
amended by adding after title VI the following new title:

            ``TITLE VII--CLIMATE POLLUTION REDUCTION PROGRAM

                           ``PART A--GENERAL

``SEC. 701. DEFINITIONS.

    ``In this title:
            ``(1) Attributable greenhouse gas emissions.--The term 
        `attributable greenhouse gas emissions', for a given calendar 
        year, means--
                    ``(A) for a covered entity that is a fuel producer 
                or importer described in paragraph (4)(B), greenhouse 
                gas emissions that would be emitted from the combustion 
                of any petroleum-based or coal-based liquid fuel, 
                petroleum coke, or natural gas liquid, produced or 
                imported by that covered entity during that calendar 
                year for sale or distribution in interstate commerce;
                    ``(B) for a covered entity that is a bulk producer 
                or importer described in paragraph (4)(C), the tons of 
                carbon dioxide equivalent of any gas described in 
                clauses (i) through (v) of paragraph (4)(C)--
                            ``(i) produced or imported by such covered 
                        entity during that calendar year for sale or 
                        distribution in interstate commerce; or
                            ``(ii) released as fugitive emissions in 
                        the production of fluorinated gas; and
                    ``(C) for a natural gas local distribution company 
                described in paragraph (4)(J), greenhouse gas emissions 
                that would be emitted from the combustion of the 
                natural gas, and any other gas meeting the 
                specifications for commingling with natural gas for 
                purposes of delivery, as determined by the 
                Administrator, that such entity delivered during that 
                calendar year to customers that are not covered 
                entities.
            ``(2) Carbon dioxide equivalent.--The term `carbon dioxide 
        equivalent' means the unit of measure, expressed in tons, of a 
        greenhouse gas as provided under section 713.
            ``(3) Compliance period.--
                    ``(A) The term `compliance period', with respect to 
                compliance periods 2 through 10 and subsequent 
                compliance periods, means the period of 3 consecutive 
                calendar years following the preceding compliance 
                period.
                    ``(B) The term `compliance period 1' means calendar 
                years 2026, 2027, and 2028.
            ``(4) Covered entity.--The term `covered entity' means each 
        of the following:
                    ``(A) Any electricity source with a nameplate 
                capacity of at least 25 megawatts.
                    ``(B) Any stationary source that produces, and any 
                entity that imports, for sale or distribution in 
                interstate commerce in 2024 or any subsequent year, 
                petroleum-based or coal-based liquid fuel, petroleum 
                coke, or natural gas liquid, which, in the aggregate, 
                if combusted would emit 25,000 or more tons of carbon 
                dioxide equivalent, as determined by the Administrator.
                    ``(C) Any stationary source that produces, and any 
                entity that imports, for sale or distribution in 
                interstate commerce, in bulk, or in products designated 
                by the Administrator, in 2024 or any subsequent year, 
                25,000 or more tons of carbon dioxide equivalent of--
                            ``(i) fossil fuel-based carbon dioxide;
                            ``(ii) nitrous oxide;
                            ``(iii) perfluorocarbons;
                            ``(iv) sulfur hexafluoride;
                            ``(v) any other fluorinated gas, except for 
                        nitrogen trifluoride, that is a greenhouse gas, 
                        as designated by the Administrator under 
                        section 712; or
                            ``(vi) any combination of greenhouse gases 
                        described in clauses (i) through (v).
                    ``(D) Any stationary source that emits 25,000 or 
                more tons of carbon dioxide equivalent of nitrogen 
                trifluoride in 2024 or any subsequent year.
                    ``(E) Any geologic sequestration site.
                    ``(F) Any stationary source in any of the following 
                industrial sectors:
                            ``(i) Adipic acid production.
                            ``(ii) Aluminum production.
                            ``(iii) Ammonia manufacturing.
                            ``(iv) Cement production.
                            ``(v) Hydrochlorofluorocarbon production.
                            ``(vi) Lime manufacturing.
                            ``(vii) Nitric acid production.
                            ``(viii) Petroleum refining.
                            ``(ix) Phosphoric acid production.
                            ``(x) Silicon carbide production.
                            ``(xi) Soda ash production.
                            ``(xii) Titanium dioxide production.
                            ``(xiii) Coal-based liquid or gaseous fuel 
                        production.
                    ``(G) Any stationary source in the chemical or 
                petrochemical sector that, in 2024 or any subsequent 
                year--
                            ``(i) produces acrylonitrile, carbon black, 
                        ethylene, ethylene dichloride, ethylene oxide, 
                        or methanol; or
                            ``(ii) emits 25,000 or more tons of carbon 
                        dioxide equivalent from the production of any 
                        number of chemical or petrochemical products.
                    ``(H) Any stationary source that--
                            ``(i) emits 25,000 or more tons of carbon 
                        dioxide equivalent in 2024 or any subsequent 
                        year; and
                            ``(ii) is in one of the following 
                        industrial sectors: ethanol production, 
                        ferroalloy production, fluorinated gas 
                        production, food processing, glass production, 
                        hydrogen production, iron and steel production, 
                        lead production, magnesium production, pulp and 
                        paper manufacturing, landfill operations, 
                        wastewater treatment operations, and zinc 
                        production.
                    ``(I) Any fossil fuel-fired combustion device (such 
                as a boiler) or grouping of such devices that--
                            ``(i) is all or part of an industrial 
                        source not specified in subparagraph (D), (F), 
                        (G), or (H); and
                            ``(ii) emits 25,000 or more tons of carbon 
                        dioxide equivalent in 2024 or any subsequent 
                        year.
                    ``(J) Any natural gas local distribution company 
                that in 2024 or any subsequent year delivers to 
                customers that are not covered entities 460,000,000 
                cubic feet or more of the total of--
                            ``(i) natural gas; and
                            ``(ii) any other gas meeting the 
                        specifications for commingling with natural gas 
                        for purposes of delivery, as determined by the 
                        Administrator.
            ``(5) Criteria air pollutant.--The term `criteria air 
        pollutant' means an air pollutant subject to national ambient 
        air quality standards under section 109.
            ``(6) Designated representative.--The term `designated 
        representative' means, with respect to an entity described in 
        subparagraph (A), (B), or (C), an individual authorized, 
        through a certificate of representation submitted to the 
        Administrator by the owners and operators or similar entity 
        official, to represent the owners and operators or similar 
        entity official in all matters pertaining to this title 
        (including the holding, transfer, or disposition of emission 
        allowances), and to make all submissions to the Administrator 
        under this title. Entities covered under this paragraph are--
                    ``(A) covered entities;
                    ``(B) reporting entities (as defined in section 
                714); and
                    ``(C) any other entities receiving or holding 
                emission allowances under this title.
            ``(7) Electricity source.--The term `electricity source' 
        means a stationary source that includes one or more combustion 
        devices that, on January 1, 2024, or any date thereafter, are 
        fossil fuel-fired and serve a generator that produces 
        electricity for sale.
            ``(8) Emission allowance.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the term `emission allowance' means a 
                limited authorization to emit, or have attributable 
                greenhouse gas emissions in an amount of, 1 ton of 
                carbon dioxide equivalent of a greenhouse gas in 
                accordance with this title.
                    ``(B) Overburdened communities.--With respect to a 
                covered entity that is a stationary source, including 
                electricity sources and industrial sources, operating 
                in a location designated as a Cleaner Air Community 
                under section 733 of part C of this title, the term 
                `emission allowance' means a limited authorization to 
                emit 0.5 tons of carbon dioxide equivalent of a 
                greenhouse gas in accordance with this title.
            ``(9) Fossil fuel.--The term `fossil fuel' means natural 
        gas, petroleum, or coal, or any form of solid, liquid, or 
        gaseous fuel derived therefrom.
            ``(10) Fossil fuel-fired.--The term `fossil fuel-fired' 
        means powered by combustion of fossil fuel, alone or in 
        combination with any other fuel, regardless of the percentage 
        of fossil fuel consumed.
            ``(11) Fugitive emissions.--The term `fugitive emissions' 
        means greenhouse gas emissions from leaks, valves, joints, or 
        other small openings in pipes, ducts, or other equipment, or 
        from vents.
            ``(12) Geologic sequestration site.--The term `geologic 
        sequestration site' means a site where a greenhouse gas is 
        geologically sequestered.
            ``(13) Greenhouse gas.--The term `greenhouse gas' means any 
        gas described or designated under section 712(a).
            ``(14) Greenhouse gas emission.--The term `greenhouse gas 
        emission' means the release of a greenhouse gas into the 
        ambient air, except--
                    ``(A) a release of methane for which the 
                Administrator imposes and collects a charge under 
                section 136(c) of the Clean Air Act;
                    ``(B) a release of a hydrofluorocarbon that is 
                regulated pursuant to title VI of this Act or section 
                103 of the Consolidated Appropriations Act, 2021; and
                    ``(C) greenhouse gases that are captured and 
                geologically sequestered, unless the greenhouse gas is 
                later released into the ambient air.
            ``(15) Hazardous air pollutant.--The term `hazardous air 
        pollutant' has the meaning given such term in section 112(a).
            ``(16) Hold.--The term `hold' means, with respect to an 
        emission allowance, to have in the appropriate account in the 
        emission allowance tracking system established under section 
        718.
            ``(17) Holder.--The term `holder' means, with respect to an 
        emission allowance, the entity that holds such emission 
        allowance.
            ``(18) Industrial source.--The term `industrial source' 
        means any stationary source that--
                    ``(A) is not an electricity source; and
                    ``(B) is in--
                            ``(i) the manufacturing sector (as defined 
                        in North American Industrial Classification 
                        System codes 31, 32, and 33); or
                            ``(ii) the natural gas processing or 
                        natural gas pipeline transportation sector (as 
                        defined in North American Industrial 
                        Classification System codes 211112 and 486210).
            ``(19) Natural gas liquid.--The term `natural gas liquid' 
        means ethane, butane, isobutane, natural gasoline, and propane.
            ``(20) Natural gas local distribution company.--The term 
        `natural gas local distribution company' has the meaning given 
        the term `local distribution company' in section 2(17) of the 
        Natural Gas Policy Act of 1978.
            ``(21) Negative emissions activities fund.--The term 
        `Negative Emissions Activities Fund' means the fund established 
        under section 105 of the Climate Pollution Standard and 
        Community Investment Act of 2024.
            ``(22) Output.--The term `output' means the total tons or 
        other standard unit (as determined by the Administrator) 
        produced by an entity in an industrial sector.
            ``(23) Petroleum.--The term `petroleum' includes crude oil, 
        tar sands, oil shale, and heavy oils.
            ``(24) Retire.--The term `retire', with respect to an 
        emission allowance, means to disqualify such emission allowance 
        for any subsequent use.
            ``(25) Sequestered; sequestration.--The terms `sequestered' 
        and `sequestration' mean the separation, isolation, or removal 
        of greenhouse gases from the atmosphere, as determined by the 
        Administrator. Such terms include biological, geologic, and 
        mineral methods of separation, isolation, and removal, but do 
        not include ocean fertilization techniques.
            ``(26) Ton.--The term `ton' means a metric ton.
            ``(27) Vintage year.--The term `vintage year' means the 
        calendar year for which an emission allowance is established 
        under--
                    ``(A) section 715; or
                    ``(B) with respect to the establishment of the cost 
                containment reserve, section 720.

``SEC. 702. ECONOMY-WIDE REDUCTION GOAL.

    ``It is the national goal for the United States--
            ``(1) to achieve net-zero greenhouse gas emissions by not 
        later than 2050; and
            ``(2) for each year thereafter--
                    ``(A) to maintain net-zero greenhouse gas 
                emissions; and
                    ``(B) seek to achieve net-negative greenhouse gas 
                emissions as determined necessary by the Administrator.

``SEC. 703. LABOR STANDARDS.

    ``The Administrator shall take such action as may be necessary to 
ensure that all laborers and mechanics employed by contractors or 
subcontractors on projects assisted pursuant to this title, including 
projects funded in whole or in part by the proceeds from the sale of 
emission allowances or by financial incentives provided using such 
proceeds, shall be paid wages at rates not less than those prevailing 
for the same type of work on similar construction in the locality as 
determined by the Secretary of Labor, in accordance with subchapter IV 
of chapter 31 of title 40, United States Code. The Secretary of Labor 
shall have, with respect to the labor standards specified in this 
section, the authority and functions set forth in Reorganization Plan 
No. 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 of title 
40, United States Code.

``SEC. 704. REGULATIONS.

    ``Except as otherwise provided in this title, the Administrator 
shall promulgate final regulations to carry out this title not later 
than 24 months after the date of enactment of this title.

   ``PART B--POLLUTION LIMITATION AND PHASEDOWN FROM COVERED ENTITIES

``SEC. 711. AGGREGATE ENFORCEABLE TARGETS FOR COVERED ENTITIES.

    ``(a) In General.--The Administrator shall, by rule, establish 
targets that are enforceable under this title for the aggregate 
quantity of greenhouse gas emissions of covered entities for each 
calendar year beginning in 2026 such that--
            ``(1) in 2026, the aggregate quantity of greenhouse gas 
        emissions (including attributable greenhouse gas emissions) 
        from covered entities is at least 5 percent below the average 
        annual aggregate quantity of greenhouse gas emissions in 2022, 
        2023, and 2024 from equivalent entities described in subsection 
        (d)(1);
            ``(2) in 2030, the aggregate quantity of greenhouse gas 
        emissions (including attributable greenhouse gas emissions) 
        from covered entities does not exceed 50 percent of the 
        aggregate quantity of greenhouse gas emissions in 2005 from 
        equivalent entities described in subsection (d)(2);
            ``(3) in 2040, the aggregate quantity of greenhouse gas 
        emissions (including attributable greenhouse gas emissions) 
        from covered entities does not exceed 30 percent of the 
        aggregate quantity of greenhouse gas emissions in 2005 from 
        equivalent entities described in subsection (d)(2); and
            ``(4) in 2050, the aggregate quantity of greenhouse gas 
        emissions (including attributable greenhouse gas emissions) 
        from covered entities does not exceed 10 percent of the 
        aggregate quantity of greenhouse gas emissions in 2005 from 
        equivalent entities described in subsection (d)(2).
    ``(b) Annual Reductions.--Beginning with 2027, the Administrator 
shall, by rule, require the aggregate quantity of greenhouse gas 
emissions from covered entities to decline on an annual basis, by at 
least 2 percent of the aggregate quantity of greenhouse gas emissions 
in 2005 from equivalent entities described in subsection (d)(2), until 
annual greenhouse gas emissions from covered entities do not exceed 10 
percent of the aggregate quantity of greenhouse gas emissions in 2005 
from equivalent entities described in subsection (d)(2). Upon achieving 
such an annual aggregate quantity, the Administrator shall ensure that 
any future annual quantity of greenhouse gas emissions from covered 
entities does not exceed the annual aggregate quantity of greenhouse 
gas emissions from covered entities in the preceding year.
    ``(c) Addition of Covered Entities or Greenhouse Gases, or Change 
in Exchange Values.--The quantities calculated pursuant to subsections 
(a) and (b) may not be revised to reflect--
            ``(1) an entity becoming or ceasing to be a covered entity 
        after the date of the establishment of targets pursuant to 
        subsection (a);
            ``(2) the designation of a gas as a greenhouse gas pursuant 
        to section 712 after such date; or
            ``(3) the revision of the carbon dioxide equivalent value 
        of any greenhouse gas pursuant to section 713 after such date.
    ``(d)  Equivalent Entities Described.--An entity is an equivalent 
entity described in this subsection if--
            ``(1) for purposes of subsection (a)(1), the entity would 
        have been a covered entity in 2022, 2023, or 2024, if--
                    ``(A) the definition of a covered entity in section 
                701 had been in effect for the respective year; and
                    ``(B) the references in such definition to 2024 
                were references to 2022; and
            ``(2) for purposes of paragraphs (2) through (4) of 
        subsection (a), an entity that would have been a covered entity 
        in 2005, if--
                    ``(A) the definition of a covered entity in section 
                701 had been in effect for the respective year; and
                    ``(B) the references in such definition to 2024 
                were references to 2005.

``SEC. 712. DESIGNATION OF GREENHOUSE GASES.

    ``(a) Greenhouse Gases.--For purposes of this title, the following 
are greenhouse gases:
            ``(1) Carbon dioxide.
            ``(2) Methane.
            ``(3) Nitrous oxide.
            ``(4) Sulfur hexafluoride.
            ``(5) Any hydrofluorocarbon.
            ``(6) Any perfluorocarbon.
            ``(7) Nitrogen trifluoride.
            ``(8) Any other anthropogenic gas designated as a 
        greenhouse gas by the Administrator under subsection (b).
    ``(b) Determination of Additional Greenhouse Gases.--The 
Administrator, by rule--
            ``(1) may determine whether 1 ton of an anthropogenic gas 
        makes the same or greater contribution to global warming over 
        100 years as 1 ton of carbon dioxide;
            ``(2) shall publish, in accordance with section 713, the 
        carbon dioxide equivalent value for each gas with respect to 
        which the Administrator makes an affirmative determination 
        under paragraph (1);
            ``(3) may for each gas with respect to which the 
        Administrator makes an affirmative determination under 
        paragraph (1) and that is used as a substitute for a class I or 
        class II substance pursuant to title VI of this Act, determine 
        the extent to which to regulate that gas pursuant to title VI 
        of this Act; and
            ``(4) may designate as a greenhouse gas for purposes of 
        this title each gas for which the Administrator makes an 
        affirmative determination under paragraph (1), to the extent 
        that it is not regulated pursuant to title VI or section 103 of 
        the Consolidated Appropriations Act, 2021.

``SEC. 713. CARBON DIOXIDE EQUIVALENT VALUE OF GREENHOUSE GASES.

    ``(a) Measure of Quantity of Greenhouse Gases.--Any provision of 
this title that refers to a quantity or percentage of a quantity of a 
greenhouse gas means the quantity or percentage of the greenhouse gas 
expressed in carbon dioxide equivalent.
    ``(b) Initial Value.--Except as revised by the Administrator 
pursuant to subsection (c), the carbon dioxide equivalent value for 
purposes of this title for any greenhouse gas shall be the 100-year 
Global Warming Potential for the greenhouse gas provided in the most 
recent assessment report from the Intergovernmental Panel on Climate 
Change as of the date of enactment of this title.
    ``(c) Periodic Revision.--
            ``(1) Revision and publication.--Not later than January 1, 
        2030, and (except as provided in paragraph (3)) not less than 
        once every 5 years thereafter, the Administrator shall--
                    ``(A) revise the carbon dioxide equivalent value 
                for purposes of this title for any greenhouse gas to 
                reflect the 100-year Global Warming Potential provided 
                in the most recent assessment report from the 
                Intergovernmental Panel on Climate Change (or any 
                successor organization); and
                    ``(B) publish in the Federal Register any such 
                revision.
            ``(2) Effective date of revision.--A revision published in 
        the Federal Register under paragraph (1)(B) shall take effect 
        for greenhouse gas emissions on January 1 of the first calendar 
        year that begins at least 9 months after the date on which the 
        revision was published.
            ``(3) Decrease in frequency.--The Administrator may 
        decrease the frequency of revision under paragraph (1) if the 
        Administrator determines that such decrease is appropriate in 
        order to synchronize such revision with any similar revision 
        process carried out pursuant to the United Nations Framework 
        Convention on Climate Change or to an agreement negotiated 
        under that convention.

``SEC. 714. GREENHOUSE GAS REGISTRY FOR MONITORING AND REPORTING.

    ``(a) Reporting Entity.--In this section, the term `reporting 
entity' means an entity that is--
            ``(1) a covered entity;
            ``(2) an entity that is required to report under part 98 of 
        title 40, Code of Federal Regulations (or any successor 
        regulations);
            ``(3) an entity that receives emission allowances under 
        section 723; or
            ``(4) any other entity that the Administrator determines to 
        be a reporting entity for purposes of this title.
    ``(b) Regulations.--
            ``(1) In general.--Not later than 6 months after the date 
        of enactment of this title, the Administrator shall issue 
        regulations establishing a Federal greenhouse gas registry.
            ``(2) Reporting.--Except as provided in paragraphs (3) and 
        (4), such regulations--
                    ``(A) shall require reporting entities to report to 
                the Administrator consistent with part 98 of title 40, 
                Code of Federal Regulations (or any successor 
                regulations);
                    ``(B) may include reporting requirements that are 
                additional to the requirements under such part 98 of 
                title 40, Code of Federal Regulations (or any successor 
                regulations), as determined appropriate by the 
                Administrator to implement this title; and
                    ``(C) shall ensure the completeness, consistency, 
                transparency, accuracy, precision, and reliability of 
                data included in the Federal greenhouse gas registry.
            ``(3) Timing.--For calendar year 2026 and each subsequent 
        calendar year, each reporting entity shall submit annually data 
        required under this section to the Administrator not later than 
        60 days after the end of the applicable calendar year, except 
        when the data is already being reported to the Administrator on 
        an earlier timeframe.
            ``(4) Waiver of reporting requirements.--The Administrator 
        may waive reporting requirements under this section for 
        specific entities to the extent that the Administrator 
        determines that sufficient and equally or more reliable, 
        verified, and timely data are available to the Administrator 
        and the public on the internet under other mandatory, statutory 
        Federal requirements.

``SEC. 715. EMISSION ALLOWANCES.

    ``(a) In General.--The Administrator shall establish a quantity of 
emission allowances for each calendar year starting in 2026 as 
necessary to achieve the targets under section 711(a) and the 
reductions under section 711(b).
    ``(b) Identification Numbers.--The Administrator shall assign to 
each emission allowance established under subsection (a) a unique 
identification number that includes the vintage year for that emission 
allowance.
    ``(c) Emission Allowances for Each Calendar Year.--
            ``(1) Compliance periods 1 and 2.--Not later than January 
        1, 2026, the Administrator shall establish the quantity of 
        emission allowances for each year in compliance period 1 and 
        compliance period 2.
            ``(2) Following two compliance periods.--Not later than 
        July 1, 2031, and every 6 years thereafter, the Administrator 
        shall establish the quantity of emission allowances for each 
        calendar year of the following two compliance periods. When 
        establishing the quantity of emission allowances under this 
        paragraph for a calendar year, the Administrator shall, 
        consistent with subsection (a), consider--
                    ``(A) the economy-wide reduction goals established 
                by section 702;
                    ``(B) the total number of emission allowances in 
                circulation, as required to be published by subsection 
                716(e); and
                    ``(C) other factors determined appropriated by the 
                Administrator.
            ``(3) Failure to set emission allowance quantity.--If the 
        Administrator fails to establish the quantity of emission 
        allowances for a compliance period by the start of the first 
        calendar year of the compliance period, the quantity of 
        emission allowances established for each calendar year of such 
        compliance period shall be the amount equal to--
                    ``(A) the quantity of emission allowances 
                established for the preceding calendar year; minus
                    ``(B) the quantity of emission allowances that is 
                equal to 3.5 percent of the aggregate quantity of 
                greenhouse gas emissions in 2005.

``SEC. 716. PROHIBITION OF EXCESS GREENHOUSE GAS EMISSIONS.

    ``(a) Prohibition.--Effective January 1, 2026, a covered entity may 
not emit greenhouse gas emissions and have attributable greenhouse gas 
emissions, in combination, in excess of the quantity of greenhouse gas 
emissions represented by the number of emission allowances surrendered 
by the covered entity pursuant to subsection (b)(3) for the compliance 
period.
    ``(b) Demonstrating Compliance.--Except as otherwise provided in 
this section, a covered entity shall surrender to the Administrator for 
retirement--
            ``(1) by 12:01 a.m. on April 1 (or a later date established 
        by the Administrator under subsection (h)) of the second year 
        of a compliance period, not less than the number of emission 
        allowances needed to represent 50 percent of the total quantity 
        of greenhouse gas emissions and attributable greenhouse gas 
        emissions, in combination, of the covered entity during the 
        first year of the compliance period;
            ``(2) by 12:01 a.m. on April 1 (or a later date established 
        by the Administrator under subsection (h)) of the third year of 
        a compliance period, not less than the number of emission 
        allowances (including those surrendered pursuant to paragraph 
        (1) for the compliance period) needed to represent 50 percent 
        of the total quantity of greenhouse gas emissions and 
        attributable greenhouse gas emissions, in combination, of the 
        covered entity during the first 2 years of the compliance 
        period; and
            ``(3) by 12:01 a.m. on April 1 (or a later date established 
        by the Administrator under subsection (h)) of the year 
        following a compliance period, not less than the number of 
        emission allowances (including those surrendered pursuant to 
        paragraphs (1) and (2) for the compliance period) needed to 
        represent 100 percent of the total quantity of greenhouse gas 
        emissions and attributable greenhouse gas emissions, in 
        combination, of the covered entity during the full compliance 
        period.
    ``(c) Application to Fractions of Tons.--For purposes of this 
section, any amount less than 1 ton of carbon dioxide equivalent of 
greenhouse gas emissions or attributable greenhouse gas emissions shall 
be treated as 1 ton of such carbon dioxide equivalent.
    ``(d) Retirement of Emission Allowances.--As soon as practicable 
after each deadline established under subsection (b), the Administrator 
shall retire the quantity of emission allowances surrendered by covered 
entities pursuant to subsection (b)(3) for the compliance period.
    ``(e) Total Number of Allowances in Circulation.--As soon as 
practicable after the deadline described in subsection (b)(3), the 
Administrator shall publish an estimate of the total quantity of 
emission allowances held by all persons on the day after such deadline.
    ``(f) Designated Representatives.--The final regulations 
promulgated under section 703 shall require that each covered entity, 
and each entity holding emission allowances or receiving emission 
allowances from the Administrator under this title, submit to the 
Administrator a certificate of representation designating a designated 
representative.
    ``(g) Education and Outreach.--The Administrator shall establish 
and carry out a program of education and outreach to assist covered 
entities in meeting the requirements of this title. Such program shall 
include education with respect to using markets to effectively meet 
such requirements.
    ``(h) Adjustment of Deadline.--The Administrator may, by rule, 
establish a deadline for demonstrating compliance in accordance with 
subsection (b) later than the date otherwise provided in subsection 
(b), as necessary to ensure the availability of greenhouse gas 
emissions data, but in no event shall the deadline be later than June 1 
of the respective calendar year.

``SEC. 717. PENALTY FOR NONCOMPLIANCE.

    ``(a) Excess Greenhouse Gas Emissions Penalty.--
            ``(1) In general.--A covered entity that fails for any year 
        to demonstrate compliance as required by section 716 by the 
        applicable deadline shall be liable for payment to the 
        Administrator of a civil penalty in the amount described in 
        paragraph (2).
            ``(2) Amount.--The amount of a penalty required to be paid 
        under paragraph (1) shall be equal to the product obtained by 
        multiplying--
                    ``(A) the number of tons of carbon dioxide 
                equivalent of greenhouse gas emissions and attributable 
                greenhouse gas emissions for which the covered entity 
                failed to demonstrate compliance as required by section 
                716 by the applicable deadline; by
                    ``(B) 3 times the auction clearing price for the 
                earliest vintage year emission allowances in the last 
                auction carried out pursuant to section 720 before such 
                deadline.
            ``(3) Timing.--A penalty under this subsection shall be 
        immediately due and payable to the Administrator, without 
        demand.
            ``(4) No effect on liability.--A penalty due and payable by 
        a covered entity under this subsection may not diminish the 
        liability of the covered entity for any fine, penalty, or 
        assessment against the covered entity for the same violation 
        under any other provision of this Act or any other law.
    ``(b) Excess Emissions Allowances.--A covered entity that fails to 
demonstrate compliance for any year, as described in subsection (a)(1), 
shall be liable to offset the covered entity's excess greenhouse gases 
emissions and attributable greenhouse gas emissions by an equal 
quantity of emission allowances during the year after the year in which 
such failure to demonstrate compliance occurred, or such longer period 
as the Administrator may prescribe.
    ``(c) Treatment as Separate Violation.--For purposes of this 
section, each ton of carbon dioxide equivalent for which a covered 
entity fails to demonstrate compliance as required by section 716 shall 
be treated as a separate violation.

``SEC. 718. TRACKING SYSTEM.

    ``The final regulations promulgated under section 703 shall include 
a system for issuing, recording, holding, and tracking emission 
allowances. Such system shall provide for appropriate publication of 
the information in the system on the internet.

``SEC. 719. PROGRAM FLEXIBILITY.

    ``(a) Permitted Transactions.--Except as otherwise provided in this 
title, the lawful holder of an emission allowance may--
            ``(1) without restriction, sell, exchange, or transfer the 
        emission allowance;
            ``(2) subject to subsection (c), hold the emission 
        allowance; and
            ``(3) request that the Administrator retire the emission 
        allowance.
    ``(b) Banking.--An emission allowance may be used to comply with 
section 716 for emissions in--
            ``(1) the vintage year for the emission allowance; or
            ``(2) any calendar year subsequent to the vintage year for 
        the emission allowance.
    ``(c) Holding Limit.--Beginning after compliance period 1, a 
covered entity may retain emission allowances issued for vintage years 
in previous compliance periods representing no more than 100 percent of 
the total quantity of greenhouse gas emissions and attributable 
greenhouse gas emissions, in combination, of the covered entity during 
the preceding compliance period.
    ``(d) No Restriction on Transactions.--The privilege of purchasing, 
holding, selling, exchanging, transferring, and requesting retirement 
of emission allowances may not be restricted to covered entities, 
except as otherwise provided in this title.

``SEC. 720. AUCTION PROCEDURES.

    ``(a) In General.--For each calendar year for which the 
Administrator establishes emission allowances under section 715, the 
Administrator shall auction emission allowances in accordance with the 
following:
            ``(1) Frequency; first auction.--Auctions shall be 
        conducted quarterly, with the first auction to be conducted not 
        later than March 31, 2026.
            ``(2) Auction schedule; current and future vintages.--The 
        Administrator--
                    ``(A) at each quarterly auction under this section, 
                shall offer both a portion of the emission allowances 
                for the same vintage year as the year in which the 
                auction is being conducted and a portion of the 
                emission allowances for future vintage years;
                    ``(B) may offer at any auction under this section 
                emission allowances for vintage years of up to 6 years 
                after the year in which the auction is being conducted; 
                and
                    ``(C) during a vintage year, shall make available 
                for auction not less than 50 percent of the emission 
                allowances established under section 715 for the 
                vintage year, including any such emissions allowances--
                            ``(i) auctioned on consignment pursuant to 
                        section 721; or
                            ``(ii) made available for auction from the 
                        emissions containment reserve.
            ``(3) Auction format.--Auctions shall follow a single-
        round, sealed-bid, uniform price format.
            ``(4) Participation; financial assurance.--Auctions shall 
        be open to any person, except that the Administrator may 
        establish financial assurance requirements to ensure that 
        auction participants will perform on their bids.
            ``(5) Disclosure of beneficial ownership.--Each bidder in 
        an auction shall be required to disclose the person or entity 
        sponsoring or benefiting from the bidder's participation in the 
        auction if such person or entity is, in whole or in part, other 
        than the bidder.
            ``(6) Purchase limits.--No person may, directly or in 
        concert with one or more other participants, purchase more than 
        5 percent of the emission allowances offered at any quarterly 
        auction.
            ``(7) Publication of information.--After an auction, the 
        Administrator shall, in a timely fashion, publish the 
        identities of winning bidders, the quantity of emission 
        allowances obtained by each winning bidder, and the auction 
        clearing price determined by the Administrator.
    ``(b) Regulations.--
            ``(1) Initial regulations.--Not later than 12 months after 
        the date of enactment of this title, the Administrator, in 
        consultation with other Federal agencies, as appropriate, shall 
        promulgate regulations governing the auction of emission 
        allowances under this section and section 721.
            ``(2) Revised regulations.--Not earlier than January 1, 
        2029, the Administrator may, in consultation with other Federal 
        agencies, as appropriate, at any time, revise the initial 
        regulations promulgated under paragraph (1). Such revised 
        regulations need not meet the requirements identified in 
        subsection (a) if the Administrator determines that an 
        alternative auction design would be more effective, taking into 
        account factors including costs of administration, 
        transparency, fairness, and risks of collusion or manipulation. 
        In determining whether and how to revise the initial 
        regulations, the Administrator may not consider maximization of 
        revenues to the Federal Government.
            ``(3) Other requirements.--The Administrator may include in 
        the regulations under this subsection such other requirements 
        or provisions as the Administrator, in consultation with other 
        Federal agencies, as appropriate, considers appropriate to 
        promote effective, efficient, transparent, and fair 
        administration of auctions.
    ``(c) Minimum Price.--The minimum price for any emission allowance 
auctioned under this section shall be $15 for any auction occurring in 
calendar year 2026. The minimum price for an emission allowance 
auctioned under this section for any auction occurring after calendar 
year 2026 shall be--
            ``(1) the minimum price applicable under this subsection 
        for the previous calendar year; plus
            ``(2) the dollar amount that is equal to--
                    ``(A) such minimum price; multiplied by
                    ``(B) the percent that is the sum of--
                            ``(i) 5 percent; plus
                            ``(ii) the percentage change in the 
                        Consumer Price Index (for all urban consumers) 
                        for the previous calendar year.
    ``(d) Cost Containment Reserve.--
            ``(1) In general.--The Administrator shall--
                    ``(A) establish a cost containment reserve;
                    ``(B) deposit into such reserve emission allowances 
                established pursuant to paragraph (2) and emission 
                allowances described in subsection (e)(4); and
                    ``(C) make available for auction allowances in such 
                reserve in accordance with paragraph (4).
            ``(2) Deposits into reserve.--
                    ``(A) Filling the reserve initially.--The 
                Administrator shall establish, and deposit into the 
                cost containment reserve, a quantity of emission 
                allowances equal to the average annual aggregate 
                quantity of greenhouse gas emissions in calendar years 
                2022, 2023, and 2024 from equivalent entities described 
                in section 711(d) for the respective calendar years.
                    ``(B) Refilling the reserve.--Following any auction 
                under this section, if any emission allowances that 
                were offered at the auction were not purchased, the 
                Administrator shall--
                            ``(i) deposit a quantity, as determined 
                        appropriate by the Administrator, of such 
                        emission allowances in the cost containment 
                        reserve; and
                            ``(ii) retire the remaining quantity of 
                        such emission allowances.
                    ``(C) Special rule.--If any emission allowances 
                established pursuant to subparagraph (A) remain in the 
                cost containment reserve, the Administrator shall 
                retire one such emission allowance for each emission 
                allowance deposited into the reserve under subparagraph 
                (B).
            ``(3) Price triggers.--
                    ``(A) Annual determination.--Each calendar year, 
                the Administrator shall set at least two price triggers 
                at which, if the auction clearing price for an auction 
                under this section would meet or exceed the price 
                trigger, the Administrator may offer at such auction 
                emission allowances from the cost containment reserve.
                    ``(B) Lowest price trigger.--The Administrator may 
                not set a price trigger under subparagraph (A) for a 
                calendar year that is less than 4 multiplied by the 
                minimum price of an emission allowance for that 
                calendar year under subsection (c).
            ``(4) Release of emission allowances.--If the auction 
        clearing price for an auction conducted under this section 
        meets or exceeds a price trigger set under paragraph (3), the 
        Administrator may, with respect to such a price trigger, offer 
        at such auction up to 5 percent of the emission allowances in 
        the cost containment reserve at the beginning of the calendar 
        year. For any auction under this section, the Administrator may 
        not offer more than 10 percent of the emission allowances in 
        the cost containment reserve.
    ``(e) Emissions Containment Reserve.--
            ``(1) In general.--The Administrator shall--
                    ``(A) establish an emissions containment reserve;
                    ``(B) each calendar year, deposit into such reserve 
                10 percent of the emission allowances established under 
                section 715 for such calendar year; and
                    ``(C) make available for auction emission 
                allowances in such reserve pursuant to paragraph (3).
            ``(2) Price triggers.--
                    ``(A) Annual determination.--Each calendar year, 
                the Administrator shall set at least two price triggers 
                at which, if the auction clearing price for an auction 
                under this section would meet or exceed the price 
                trigger, the Administrator will make available for 
                auction emission allowances from the emissions 
                containment reserve.
                    ``(B) Lowest price trigger.--The Administrator may 
                not set a price trigger under subparagraph (A) for a 
                calendar year that is less than 125 percent of the 
                minimum price of an emission allowance for that 
                calendar year under subsection (c).
            ``(3) Release of emission allowances.--At any auction under 
        this section, the Administrator--
                    ``(A) may not offer more than 25 percent of the 
                emission allowances deposited into the emissions 
                containment reserve for the respective calendar year at 
                any of the auctions under this section in such calendar 
                year; and
                    ``(B) for each price trigger met or exceeded by the 
                auction clearing price, the Administrator may offer up 
                to 12.5 percent of the emission allowances deposited 
                into the emissions containment reserve for the 
                respective calendar year.
            ``(4) Allowances not purchased.--At the end of each 
        calendar year, any emission allowance in the emissions 
        containment reserve offered but not purchased at auction may be 
        deposited into the cost containment reserve pursuant to 
        subsection (d)(2)(B).
    ``(f) Public Auction Information.--Prior to the first auction under 
this section each calendar year, the Administrator shall publish the 
following:
            ``(1) The minimum price for an emission allowance for such 
        calendar year under subsection (c).
            ``(2) The number of emission allowances of each vintage 
        year to be offered at each auction in such calendar year.
            ``(3) The number and dollar amounts of the price triggers 
        for such calendar year for the cost containment reserve 
        established under subsection (d).
            ``(4) The number and dollar amounts of the price triggers 
        for such calendar year for the emissions containment reserve 
        established under subsection (e).
            ``(5) Any additional information determined to be 
        appropriate by the Administrator.
    ``(g) Delegation or Contract.--The Administrator may by delegation 
or contract provide for the conduct of auctions under this section 
under the Administrator's supervision--
            ``(1) by other departments or agencies of the Federal 
        Government; or
            ``(2) by nongovernmental agencies, groups, or 
        organizations.

``SEC. 721. CONSIGNMENT AUCTIONS.

    ``(a) Voluntary Consignment.--Any entity holding emission 
allowances may request that the Administrator make available for 
auction under section 720 the emission allowances on consignment.
    ``(b) Mandatory Consignment.--
            ``(1) Conditional allocations.--Before any emission 
        allowance allocated under subsection (a) or (b) of section 722 
        (including any emission allowance transferred to a covered 
        entity pursuant to section 722(a)(3)(B) or section 
        722(a)(6)(B)(ii)) may be sold, further transferred, retired, or 
        used to demonstrate compliance under section 716, such emission 
        allowance shall be made available for auction on consignment 
        pursuant to this section and section 720.
            ``(2) Transparency.--The Administrator shall publish--
                    ``(A) the names of entities holding emission 
                allowances that are made available for auction on 
                consignment pursuant to paragraph (1);
                    ``(B) the quantities of emission allowances that 
                are so made available for auction; and
                    ``(C) any additional information relating to 
                emission allowances that are so made available for 
                auction, as determined by the Administrator.
    ``(c) Proceeds.--Notwithstanding section 3302 of title 31, United 
States Code--
            ``(1) the Federal Government shall, not later than 90 days 
        after receipt of the proceeds from any auction on consignment 
        pursuant to subsection (b)(1), transfer such proceeds to the 
        entity that requested the Administrator offer the respective 
        emission allowances at an auction under section 720; and
            ``(2) no such proceeds shall be held by any officer or 
        employee of the United States or treated for any purpose as 
        public monies.
    ``(d) Unsold Emission Allowances.--The Administrator shall return 
to the entity offering an emission allowance at auction on consignment 
pursuant to this section any such allowance that is not sold at the 
auction.

``SEC. 722. ALLOCATION OF EMISSION ALLOWANCES.

    ``(a) For the Benefit of Consumers.--
            ``(1) In general.--Beginning with vintage year 2026, the 
        Administrator shall allocate emission allowances established 
        each calendar year under section 715(a) to States and Indian 
        Tribes in the following amounts:
                    ``(A) For compliance period 1, 30 percent of the 
                emission allowances established for each year of such 
                compliance period under section 715(a).
                    ``(B) For compliance period 2, 27 percent of the 
                emission allowances established for each year of such 
                compliance period under section 715(a).
                    ``(C) For compliance period 3, 24 percent of the 
                emission allowances established for each year of such 
                compliance period under section 715(a).
                    ``(D) For compliance period 4, 21 percent of the 
                emission allowances established for each year of such 
                compliance period under section 715(a).
                    ``(E) For compliance period 5, 18 percent of the 
                emission allowances established for each year of such 
                compliance period under section 715(a).
                    ``(F) For compliance period 6, 15 percent of the 
                emission allowances established for each year of such 
                compliance period under section 715(a).
                    ``(G) For compliance period 7, 12 percent of the 
                emission allowances established for each year of such 
                compliance period under section 715(a).
                    ``(H) For compliance period 8, 9 percent of the 
                emission allowances established for each year of such 
                compliance period under section 715(a).
                    ``(I) For compliance period 9, 6 percent of the 
                emission allowances established for each year of such 
                compliance period under section 715(a).
                    ``(J) For compliance period 10, 3 percent of the 
                emission allowances established for each year of such 
                compliance period under section 715(a).
                    ``(K) For each subsequent compliance period, 0 
                percent of the emission allowances established for each 
                year of such compliance periods under section 715(a).
            ``(2) Distribution.--Not later than December 31 of each 
        year, the Administrator shall distribute among States and 
        Indian Tribes the quantity of emission allowances allocated 
        under paragraph (1) for the following vintage year, ratably 
        based on the ratio of--
                    ``(A) the aggregate quantity of greenhouse gases 
                emitted within a jurisdiction in the second preceding 
                vintage year associated with the combustion of fuels 
                for--
                            ``(i) electricity generation; and
                            ``(ii) residential and commercial end uses 
                        of fuels, excluding end uses related to 
                        transportation; to
                    ``(B) the aggregate quantity of greenhouse gases 
                emitted within the United States in the second 
                preceding vintage year associated with the combustion 
                of fuels for--
                            ``(i) electricity generation; and
                            ``(ii) residential and commercial end uses 
                        of fuels, excluding end uses related to 
                        transportation.
            ``(3) Use of emission allowances.--States and Indian Tribes 
        shall--
                    ``(A) sell, on consignment in accordance with 
                section 721, the emission allowances allocated under 
                this subsection and use the proceeds of such sales 
                exclusively for the benefit of consumers of electricity 
                and residential and commercial end users of fuels by 
                carrying out a--
                            ``(i) cost-effective energy efficiency 
                        program to reduce the use of electricity and 
                        fuel;
                            ``(ii) rebate or other financial incentive 
                        program to encourage adoption and use of low-
                        emission fuel alternatives, which may include a 
                        program that provides for electrification; or
                            ``(iii) rebate or other direct financial 
                        assistance program, which may include a low-
                        income ratepayer assistance program; or
                    ``(B) transfer, on a nonreimburseable basis, such 
                emission allowances to one or more covered entities 
                responsible for greenhouse gas emissions or 
                attributable greenhouse gas emissions within the 
                jurisdiction of the State or Indian Tribe to be used by 
                such entities exclusively for the benefit of consumers 
                of electricity and residential and commercial end users 
                of fuels.
            ``(4) Administrative expenses.--States and Indian Tribes 
        may use up to 5 percent of the proceeds from the sale of 
        emission allowances allocated under this subsection for 
        administrative purposes in carrying out programs under 
        paragraph (3).
            ``(5) Reporting.--Each State and Indian Tribe receiving 
        emission allowances under this subsection shall submit to the 
        Administrator, not later than 12 months after each receipt of 
        such emission allowances, a report, in accordance with such 
        requirements as the Administrator may prescribe, that--
                    ``(A) describes the use of emission allowances sold 
                or transferred under paragraph (3), including a 
                description of the energy efficiency, fuel switching, 
                and consumer assistance programs supported pursuant to 
                paragraph (3);
                    ``(B) includes an evaluation, prepared by an 
                independent third party, of the performance of the 
                energy efficiency, fuel switching, and consumer 
                assistance programs supported pursuant to paragraph 
                (3); and
                    ``(C) describes any transfer of emission allowances 
                to covered entities under paragraph (3)(B).
            ``(6) Enforcement.--If the Administrator determines a State 
        or Indian Tribe is not in compliance with this subsection, the 
        Administrator may--
                    ``(A)(i) withhold a portion of emission allowances 
                under this subsection that would otherwise be 
                distributed to the State or Indian Tribe for the next 
                vintage year; and
                    ``(ii) distribute such withheld emission allowances 
                among the remaining States and Indian Tribes ratably in 
                accordance with the formula under paragraph (2); or
                    ``(B)(i) withhold a portion of emission allowances 
                under this subsection that would otherwise be 
                distributed to the State or Indian Tribe for the next 
                vintage year; and
                    ``(ii) directly transfer, on a nonreimburseable 
                basis, such withheld emission allowances to one or more 
                covered entities responsible for greenhouse gas 
                emissions or attributable greenhouse gas emissions 
                within the jurisdiction of such State or Indian Tribe 
                to be used by such entities exclusively for the benefit 
                of consumers as described in paragraph (3)(A).
    ``(b) Energy-Intensive, Trade-Exposed Industries.--
            ``(1) In general.--Beginning with vintage year 2026, the 
        Administrator shall allocate emission allowances to eligible 
        industry sectors designated and listed under section 723(a)(1), 
        to be distributed in accordance with section 723, in the 
        following amounts:
                    ``(A) For compliance periods 1 and 2, 15 percent of 
                the emission allowances established for each year of 
                such compliance periods under section 715(a).
                    ``(B) For compliance periods 3 and 4, 12 percent of 
                the emission allowances established for each year of 
                such compliance periods under section 715(a).
                    ``(C) For compliance periods 5 and 6, 9 percent of 
                the emission allowances established for each year of 
                such compliance periods under section 715(a).
                    ``(D) For compliance periods 7 and 8, 6 percent of 
                the emission allowances established for each year of 
                such compliance periods under section 715(a).
                    ``(E) For compliance periods 9 and 10, 3 percent of 
                the emission allowances established for each year of 
                such compliance periods under section 715(a).
                    ``(F) For each subsequent compliance period, 0 
                percent of the emission allowances established for each 
                year of such compliance periods under section 715(a).
            ``(2) Carryover.--After the Administrator distributes 
        emission allowances pursuant to section 723 for any vintage 
        year, any emission allowances allocated to eligible industry 
        sectors designated and listed under section 723(a)(1) pursuant 
        to this subsection that have not been so distributed shall--
                    ``(A) remain available for distribution pursuant to 
                section 723 for the following vintage year; and
                    ``(B) be treated as part of the allocation to such 
                entities for that following vintage year.
    ``(c) Low-Income Consumers.--Beginning with vintage year 2026, the 
Administrator shall make available for auction, pursuant to section 
720, 15 percent of the emission allowances established for each year 
under section 715(a). The proceeds from such auction shall be made 
available to the Secretary of the Treasury to provide rebates under 
section 102 of the Climate Pollution Standard and Community Investment 
Act of 2024.
    ``(d) State, Territorial, and Tribal Governments.--Beginning with 
vintage year 2026, the Administrator shall make available for auction, 
pursuant to section 720, 10 percent of the emission allowances 
established for each year under section 715(a), with the proceeds 
distributed to States and Indian Tribes pursuant to section 724.
    ``(e) Local Governments.--Beginning with vintage year 2026, the 
Administrator shall make available for auction, pursuant to section 
720, 5 percent of the emission allowances established for each year 
under section 715(a). The proceeds from such auction shall be made 
available to the Secretary of Energy to carry out subtitle E of title V 
of the Energy Independence and Security Act of 2007.
    ``(f) Jurisdictions Hosting High-Level Nuclear Waste.--
            ``(1) In general.--Beginning with vintage year 2026, the 
        Administrator shall make available for auction, pursuant to 
        section 720, 0.5 percent of the emission allowances established 
        for each year under section 715(a), with the proceeds provided 
        to each State and Indian Tribe for which a repository where 
        high-level radioactive waste and spent nuclear fuel are 
        permanently disposed of is located within the jurisdiction of 
        the State or Indian Tribe.
            ``(2) No eligible state or indian tribe.--If no State or 
        Indian Tribe is eligible to be provided proceeds under this 
        subsection with respect to a vintage year, such proceeds shall 
        be provided to States and Indian Tribes pursuant to section 
        724.
            ``(3) Multiple states or indian tribes.--If more than one 
        State or Indian Tribe is eligible for proceeds under this 
        subsection with respect to a vintage year, such proceeds shall 
        be distributed ratably among such States and Indian Tribes 
        based on the ratio of--
                    ``(A) the mass of high-level radioactive waste and 
                spent nuclear fuel permanently disposed of within the 
                jurisdictions of the respective States or Indian 
                Tribes; relative to
                    ``(B) the mass of high-level radioactive waste and 
                spent nuclear fuel permanently disposed of in the 
                United States.
    ``(g) Worker and Community Assistance.--
            ``(1) In general.--Beginning with vintage year 2026, the 
        Administrator shall make available for auction, pursuant to 
        section 720, 5 percent of the emission allowances established 
        for each year under section 715(a), with the proceeds deposited 
        into the Worker and Community Assistance Fund established under 
        section 103 of the Climate Pollution Standard and Community 
        Investment Act of 2024.
            ``(2) Determination of additional revenues needed.--For any 
        year, the Administrator, in consultation with the Secretary of 
        the Treasury, the Secretary of Labor, and the Director of the 
        Office of Energy and Economic Transition as established by 
        section 203 of the Climate Pollution Standard and Community 
        Investment Act of 2024--
                    ``(A) may determine that additional revenue is 
                necessary to carry out sections 206, 207, and 208 of 
                the Climate Pollution Standard and Community Investment 
                Act of 2024; and
                    ``(B) if emission allowances are available and upon 
                a determination under subparagraph (A), may offer at an 
                auction pursuant to section 720, in addition to the 
                emission allowances made available for auction pursuant 
                to paragraph (1), up to 5 percent of emissions 
                allowances established for such year under section 
                715(a), with the proceeds deposited into the Worker and 
                Community Assistance Fund established under section 103 
                of the Climate Pollution Standard and Community 
                Investment Act of 2024.
    ``(h) Frontline Communities.--Beginning with vintage year 2026, the 
Administrator shall make available for auction, pursuant to section 
720, 10 percent of the emission allowances established for each year 
under section 715(a), with the proceeds deposited into the Cleaner Air 
Community Fund established under section 104 of the Climate Pollution 
Standard and Community Investment Act of 2024.
    ``(i) Negative Emissions Activities.--The Administrator shall make 
available for auction, pursuant to section 720, emission allowances 
established for each year under section 715(a), with the proceeds 
deposited into the Negative Emissions Activities Fund established under 
section 105 of the Climate Pollution Standard and Community Investment 
Act of 2024, in the following amounts:
            ``(1) For compliance periods 1 and 2, 2.5 percent of the 
        emission allowances established for each year of such 
        compliance periods under section 715(a).
            ``(2) For compliance periods 3 and 4, 5 percent of the 
        emission allowances established for each year of such 
        compliance periods under section 715(a).
            ``(3) For compliance periods 5 and 6, 7.5 percent of the 
        emission allowances established for each year of such 
        compliance periods under section 715(a).
            ``(4) For compliance periods 7 and 8, 10 percent of the 
        emission allowances established for each year of such 
        compliance periods under section 715(a).
            ``(5) For compliance periods 9 and 10, 15 percent of the 
        emission allowances established for each year of such 
        compliance periods under section 715(a).
            ``(6) For each subsequent compliance period, 20 percent of 
        the emission allowances established for each year of such 
        compliance period under section 715(a).
    ``(j) Energy Innovation Fund.--Beginning with vintage year 2026, 
the Administrator shall make available for auction, pursuant to section 
720, 2.5 percent of the emission allowances established for each year 
under section 715(a), with the proceeds deposited into the Energy 
Innovation Fund established under section 106 of the Climate Pollution 
Standard and Community Investment Act of 2024.

``SEC. 723. OUTPUT-BASED DISTRIBUTIONS FOR ENERGY-INTENSIVE, TRADE-
              EXPOSED INDUSTRIES.

    ``(a) Designation of Eligible Industrial Sectors.--
            ``(1) In general.--The Administrator shall--
                    ``(A) designate (using the six-digit classification 
                system of the North American Industrial Classification 
                System of 2002 or a superseding classification system) 
                eligible industrial sectors based on the criteria 
                described in paragraph (3); and
                    ``(B) maintain a list of such eligible industrial 
                sectors.
            ``(2) Eligible industrial sector list.--
                    ``(A) Initial list.--Not later than June 30, 2025, 
                the Administrator shall publish in the Federal Register 
                a list of eligible industrial sectors designated under 
                this subsection.
                    ``(B) Subsequent lists.--Not later than June 30, 
                2031, and not less than every 6 years thereafter, the 
                Administrator shall publish in the Federal Register an 
                updated version of the list published under 
                subparagraph (A).
            ``(3) Eligibility criteria.--
                    ``(A) In general.--To be designated as an eligible 
                industrial sector under this subsection, an industrial 
                sector shall meet the criteria in--
                            ``(i) both subparagraphs (B) and (C); or
                            ``(ii) subparagraph (D).
                    ``(B) Energy or greenhouse gas intensity.--An 
                industrial sector meets the criteria in this 
                subparagraph if the sector has--
                            ``(i) an energy intensity of at least 5 
                        percent, calculated by dividing--
                                    ``(I) the cost of purchased 
                                electricity and fuel of such sector; by
                                    ``(II) the value of the shipments 
                                of such sector; or
                            ``(ii) a greenhouse gas intensity of at 
                        least 5 percent, calculated by dividing--
                                    ``(I) the number of tons of 
                                greenhouse gas emissions (including 
                                direct emissions from fuel combustion, 
                                process emissions, and indirect 
                                emissions from the generation of 
                                electricity used to produce the output 
                                of the sector) of such sector, 
                                multiplied by 20; by
                                    ``(II) the value of the shipments 
                                of such sector.
                    ``(C) Trade intensity.--An industrial sector meets 
                the criteria in this subparagraph if the sector has a 
                trade intensity of at least 15 percent, calculated by 
                dividing--
                            ``(i) the value of the imports and exports 
                        of such sector; by
                            ``(ii) the sum of the value of the 
                        shipments and the value of imports of such 
                        sector.
                    ``(D) Very high energy or greenhouse gas 
                intensity.--An industrial sector meets the criteria in 
                this subparagraph if the sector has--
                            ``(i) an energy intensity of at least 20 
                        percent, as calculated under subparagraph 
                        (B)(i); or
                            ``(ii) a greenhouse gas intensity of at 
                        least 20 percent, as calculated under 
                        subparagraph (B)(ii).
            ``(4) Use of data.--When determining the eligibility of an 
        industrial sector, or a subgroup of entities within an 
        industrial sector, under this subsection--
                    ``(A) the Administrator shall use the average 
                annual data for the most recent 4 years for which such 
                data are available;
                    ``(B) if data are unavailable for any industrial 
                sector at the six-digit classification level referred 
                to in paragraph (1)(A), the Administrator may 
                extrapolate the information necessary to determine the 
                eligibility of a sector from available data pertaining 
                to a broader industrial category classified in--
                            ``(i) the North American Industrial 
                        Classification System of 2002; or
                            ``(ii) a superseding classification system;
                    ``(C) the Administrator may request any additional 
                information, as determined necessary by the 
                Administrator, from any owner or operator of an entity 
                in a potentially eligible industrial sector; and
                    ``(D) the Administrator shall seek information from 
                the owner or operator of an entity in a potentially 
                eligible industrial sector that produces more than one 
                product at a facility in order to attribute energy 
                usage and greenhouse gas emissions associated with the 
                production of each product type.
            ``(5) Listing of subgroups as an eligible industrial 
        sector.--
                    ``(A) Designation of subgroups.--The Administrator 
                may, pursuant to paragraph (1), designate and list a 
                subgroup of entities within an industrial sector as a 
                separate eligible industrial sector if the subgroup of 
                entities meets the eligibility criteria in paragraph 
                (3)(A) for designation as an eligible industrial 
                sector.
                    ``(B) Determination.--In determining under 
                paragraph (3)(A) whether a subgroup of entities meets 
                the criteria under subparagraphs (B) and (C) or (D) of 
                such paragraph, the Administrator shall consider--
                            ``(i) the energy intensity, greenhouse gas 
                        intensity, and trade intensity of the 
                        industrial sector represented by such subgroup 
                        of entities; and
                            ``(ii) the products manufactured by the 
                        subgroup and not the industrial process by 
                        which such products are manufactured, except 
                        that the Administrator may determine a subgroup 
                        of entities that manufacture a product 
                        primarily from virgin material to be listed as 
                        a separate eligible industrial sector from 
                        another subgroup of entities that manufacture 
                        the same product primarily from recycled 
                        material.
            ``(6) Individual petition for eligibility.--
                    ``(A) Petition.--The owner or operator of an entity 
                in an industrial sector may petition the Administrator 
                to designate, pursuant to paragraph (5), one or more 
                entities in such industrial sector as an eligible 
                industrial sector.
                    ``(B) Final action.--Not later than 6 months after 
                the receipt of a petition under subparagraph (A), the 
                Administrator shall take final action on such petition.
            ``(7) Special cases.--
                    ``(A) Iron and steel sector.--For purposes of this 
                section, the Administrator shall consider as being in 
                different industrial sectors--
                            ``(i) entities using integrated iron and 
                        steelmaking technologies (including coke ovens, 
                        blast furnaces, and other ironmaking 
                        technologies); and
                            ``(ii) entities using electric arc furnace 
                        technologies.
                    ``(B) Metal, soda ash, or phosphate production 
                classified under more than one naics code.--For 
                purposes of this section, the Administrator--
                            ``(i) may not aggregate data for the 
                        beneficiation or other processing (including 
                        agglomeration) of metal ores, soda ash, or 
                        phosphate with subsequent steps in the process 
                        of metal, soda ash, or phosphate manufacturing;
                            ``(ii) shall consider the beneficiation or 
                        other processing (including agglomeration) of 
                        metal ores, soda ash, or phosphate to be in 
                        separate industrial sectors from the metal, 
                        soda ash, or phosphate manufacturing sectors; 
                        and
                            ``(iii) shall treat industrial sectors that 
                        beneficiate or otherwise process (including 
                        agglomeration) metal ores, soda ash, or 
                        phosphate as ineligible to receive emission 
                        allowances under this section related to the 
                        activity of extracting metal ores, soda ash, or 
                        phosphate.
                    ``(C) Petroleum refining.--Industrial sectors that 
                refine petroleum products may not be designated and 
                listed as an eligible industrial sector under this 
                section.
    ``(b) Output-Based Allocation Benchmarks.--
            ``(1) In general.--The Administrator shall determine the 
        average greenhouse gas emissions per unit of output for each 
        eligible industrial sector designated and listed under 
        subsection (a)(1) (referred to in this subsection as the 
        `output-based allocation benchmark' for such sector).
            ``(2) Calculating benchmark.--
                    ``(A) In general.--The Administrator shall 
                calculate the output-based allocation benchmark for 
                each eligible industrial sector based on the greenhouse 
                gas emissions, including direct emissions, process 
                emissions, and indirect emissions, expressed in tons of 
                carbon dioxide equivalent, per unit of output, for such 
                eligible industrial sector using an average of the 3 
                most recent years of the best available data for such 
                eligible industrial sector.
                    ``(B) Calculating indirect emissions.--Each person 
                selling electricity to the owner or operator of an 
                entity in an eligible industrial sector shall--
                            ``(i) provide the owner or operator of the 
                        entity and the Administrator relevant 
                        greenhouse gas emissions data for such entity; 
                        and
                            ``(ii) where it is not possible to 
                        determine the precise indirect greenhouse gas 
                        emissions for such entity, use the monthly 
                        average data reported by the Energy Information 
                        Administration or collected and reported for 
                        the electric utility serving the entity to 
                        determine greenhouse gas emissions.
                    ``(C) Multiple eligible industrial sectors at one 
                facility.--The Administrator shall seek information 
                from the owner or operator of an entity in an eligible 
                industrial sector that produces more than one product 
                at a facility in order to attribute energy usage and 
                greenhouse gas emissions associated with the production 
                of each product type at such facility.
            ``(3) Data sources.--For the purposes of this subsection, 
        the Administrator--
                    ``(A) shall use data--
                            ``(i) reported to the Environmental 
                        Protection Agency;
                            ``(ii) reported to other Federal agencies; 
                        and
                            ``(iii) from each owner or operator of an 
                        entity in an eligible industrial sector; and
                    ``(B) may require an owner or operator of an entity 
                in an eligible industrial sector to provide such 
                information as the Administrator finds necessary to 
                determine the output-based allocation benchmark for 
                such eligible industrial sector.
    ``(c) Distribution of Emission Allowances.--
            ``(1) In general.--For each vintage year, the Administrator 
        shall--
                    ``(A) distribute pursuant to this section emission 
                allowances allocated under section 722(b), not later 
                than October 31 of the preceding calendar year; and
                    ``(B) make such annual distributions to the owner 
                or operator of each entity responsible for output in an 
                eligible industrial sector listed under subsection (a) 
                in the amount of emission allowances calculated under 
                this subsection.
            ``(2) Assistance factor.--For the purpose of distributing 
        emission allowances under this subsection, the Administrator 
        shall use the following (referred to in this subsection as an 
        `assistance factor'):
                    ``(A) For compliance period 1, 1.0.
                    ``(B) For compliance period 2, 0.9.
                    ``(C) For compliance period 3, 0.8.
                    ``(D) For compliance period 4, 0.7.
                    ``(E) For compliance period 5, 0.6.
                    ``(F) For compliance period 6, 0.5.
                    ``(G) For compliance period 7, 0.4.
                    ``(H) For compliance period 8, 0.3.
                    ``(I) For compliance period 9, 0.2.
                    ``(J) For compliance period 10, 0.1.
                    ``(K) For each subsequent compliance period, 0.
            ``(3) Amount of emission allowances.--The amount of 
        emission allowances to be distributed to the owner or operator 
        of an entity in an eligible industrial sector shall be 
        calculated by--
                    ``(A) the output-based allocation benchmark 
                calculated pursuant to subsection (b) of the industrial 
                sector of such entity; multiplied by
                    ``(B) the average annual output of such entity for 
                the 2 years preceding the year of the distribution; 
                multiplied by
                    ``(C) the appropriate assistance factor under 
                paragraph (2).
            ``(4) New entities.--Not later than 24 months after the 
        date of enactment of this title, the Administrator shall issue 
        regulations governing the distribution of emission allowances 
        for the first 4 years of operation of a new entity in an 
        eligible industrial sector. These regulations shall provide 
        for--
                    ``(A) the distribution of emission allowances to 
                such entities based on comparable entities in the same 
                eligible industrial sector; and
                    ``(B) an adjustment in the third and fourth years 
                of operation to reconcile the total amount of emission 
                allowances received during the first 4 years of 
                operation of the new entity to the amount the entity 
                would have received during such years of operation had 
                the appropriate data been available for the first and 
                second years of operation.
    ``(d) Total Maximum Distribution.--The Administrator may not 
distribute more emission allowances for any vintage year pursuant to 
this section than are allocated for use pursuant to section 722(b) for 
that vintage year. For any vintage year for which the total emission 
allowances calculated for distribution pursuant to this section would 
exceed the number of emission allowances allocated pursuant to section 
722(b), the Administrator shall reduce each entity's distribution on a 
pro rata basis so that the total distribution of emission allowances 
under this section equals the number of emission allowances allocated 
under section 722(b).
    ``(e) Cessation of Qualifying Activities.--If, as determined by the 
Administrator, an entity is no longer in an eligible industrial 
sector--
            ``(1) the Administrator may not distribute emission 
        allowances to the owner or operator of such entity under this 
        section; and
            ``(2) the owner or operator of such entity shall return to 
        the Administrator--
                    ``(A) all emissions allowances that have been 
                distributed under this section to the owner or operator 
                for future vintage years; and
                    ``(B) a prorated amount of emission allowances 
                distributed under this section for the vintage year in 
                which the entity ceases to be in an eligible industrial 
                sector.

``SEC. 724. ASSISTANCE TO STATE, TERRITORIAL, AND TRIBAL GOVERNMENTS.

    ``(a) In General.--The Administrator shall annually distribute to 
States and Indian Tribes the proceeds of emission allowances auctioned 
pursuant to section 722(d). Such proceeds shall be used by States and 
Indian Tribes to provide financial assistance and incentives in 
accordance with subsection (e) that support the reduction of air 
pollution, including criteria air pollutants, hazardous air pollutants, 
and emissions of greenhouse gases, or promote adaptation to climate 
change.
    ``(b) Regulations.--Not later than 24 months after the date of 
enactment of this section, the Administrator shall promulgate 
regulations to carry out this section, including regulations--
            ``(1) to ensure that each State and Indian Tribe provides 
        financial assistance and incentives efficiently and in 
        accordance with this section and applicable Federal laws;
            ``(2) to prevent waste, fraud, and abuse;
            ``(3) to identify the forms of financial assistance and 
        incentives that States and Indian Tribes may provide; and
            ``(4) to prescribe the form and content of reports that 
        States and Indian Tribes are required to submit under this 
        section.
    ``(c) Intended Use Plans.--
            ``(1) In general.--After providing for public review and 
        comment, each State and Indian Tribe receiving proceeds under 
        this section shall annually prepare a plan that identifies the 
        intended uses of such proceeds.
            ``(2) Contents.--An intended use plan prepared under 
        paragraph (1) shall include--
                    ``(A) a list of the projects or programs intended 
                to be funded in the next fiscal year that begins after 
                the date of the plan, including a description of each 
                project or program; and
                    ``(B) additional information as determined 
                appropriate by the Administrator.
    ``(d) Distribution Among States and Indian Tribes.--
            ``(1) In general.--Not later than September 30 of each 
        calendar year, the Administrator shall, in accordance with this 
        section, distribute the proceeds of emission allowances 
        auctioned pursuant to section 722(d) each year in accordance 
        with the following formula:
                    ``(A) 25 percent shall be divided equally among the 
                States.
                    ``(B) 50 percent of the emission allowances shall 
                be distributed ratably among the States and Indian 
                Tribes based on the population of each State and Indian 
                Tribe, as contained in the most recent census data 
                available from the Bureau of the Census at the time the 
                Administrator calculates the formula for distribution.
                    ``(C) 25 percent shall be distributed ratably among 
                the States and Indian Tribes on the basis of the energy 
                consumption of each State and Indian Tribe as contained 
                in the most recent State Energy Data System report of 
                the Energy Information Administration (or such 
                alternative reliable source as the Administrator may 
                designate).
            ``(2) Minimum amounts for indian tribes.--The Administrator 
        shall ensure that not less than 5 percent of the total proceeds 
        distributed to States and Indian Tribes in each calendar year 
        is distributed to Indian Tribes.
            ``(3) Recalculation of distribution amounts.--The 
        Administrator shall recalculate the amounts to be distributed 
        as determined by the formula in paragraph (1) not less 
        frequently than once every 5 years.
    ``(e) Uses.--The proceeds distributed to each State and Indian 
Tribe pursuant to this section may be used to provide grants, tax 
credits, production incentives, loans, loan guarantees, forgivable 
loans, interest rate buydowns, and other types of financial assistance 
and incentives that support or promote the following:
            ``(1) Zero-emission electricity generation, including--
                    ``(A) research, development, and demonstration of 
                zero-emission electricity generation projects; and
                    ``(B) deployment of community-scale, low-income, 
                and distributed generation zero-emission electricity 
                generation projects.
            ``(2) Energy storage projects.
            ``(3) Energy efficiency programs.
            ``(4) Grid modernization, including support for integration 
        of renewable energy resources and distributed generation, 
        demand response, demand side management, and systems analysis.
            ``(5) Deployment of zero-emission vehicles, including 
        light-, medium-, and heavy-duty vehicles.
            ``(6) Charging, refueling, and grid infrastructure 
        enhancement to support zero-emission vehicles.
            ``(7) Design, construction, and maintenance to improve the 
        resilience of existing and new infrastructure, including public 
        health infrastructure, to the impacts of climate change, 
        including wildfires, drought, flooding, and other extreme 
        weather events.
            ``(8) Electrification of residential and commercial 
        products that reduces demand for natural gas, heating oil, 
        gasoline, diesel fuel, or propane.
            ``(9) Wildlife and natural resource adaptation, including--
                    ``(A) protection, maintenance, or restoration of 
                natural infrastructure such as wetlands, reefs, and 
                barrier islands;
                    ``(B) conservation or maintenance of public lands;
                    ``(C) protection and restoration of watersheds;
                    ``(D) floodplain restoration and flood protection 
                in densely populated urban areas; and
                    ``(E) mitigation of ocean-related climate change 
                effects, including effects on bays, estuaries, 
                populated barrier islands, and other ocean-related 
                features.
            ``(10) Sustainable agricultural programs, including 
        promotion of soil health.
            ``(11) Food waste reduction programs.
            ``(12) Sustainable forest management and land use programs.
            ``(13) Reduction, capture, and use of methane from 
        landfills and wastewater treatment facilities.
            ``(14) Material conservation programs.
            ``(15) Providing the non-Federal share of the cost of 
        surface transportation capital projects that support public 
        transportation and transit programs, including support for bike 
        lanes and pathways, pedestrian pathways, and bike share 
        programs provided that not more than 10 percent of assistance 
        distributed to each State and Indian Tribe pursuant to this 
        section shall be used for such purposes.
            ``(16) Construction, expansion, and retooling of facilities 
        that manufacture components for clean energy technology 
        systems.
            ``(17) Installation, retrofit, or conversion of equipment 
        to enable manufacturing facilities to manufacture zero- or low-
        emission energy-intensive industrial products.
            ``(18) Any other program, including a State program, that 
        reduces air pollution, deploys clean energy or energy efficient 
        technologies, or enhances the resilience of infrastructure, as 
        determined by the Administrator.
    ``(f) Administrative Costs.--Not more than 5 percent of the 
proceeds distributed to States and Indian Tribes in any year may be 
used for the purposes of administrative expenses.
    ``(g) Maintenance of Effort.--A State or Indian Tribe's use of 
proceeds distributed by this section shall include assurances that the 
State or Indian Tribe will maintain support for existing activities 
carried out by such State or Indian Tribe in future years at least at 
the levels of such support that is the average of such State or Indian 
Tribe's support for such programs in the 3 years preceding the date of 
enactment of this section. The Administrator may waive the requirement 
in this subsection for the purpose of relieving fiscal burdens on 
States and Indian Tribes that have experienced a precipitous decline in 
financial resources.
    ``(h) Assistance to Disadvantaged and Rural Communities.--Not less 
than 50 percent of funding distributed to each State and Indian Tribe 
shall be used to provide assistance to activities located within 
disadvantaged or rural communities, as determined by the Administrator.
    ``(i) Reporting.--Each State and Indian Tribe shall submit to the 
Administrator a report every 2 years on the use of proceeds received 
under this section in accordance with such requirements as the 
Administrator may prescribe.
    ``(j) Enforcement.--If the Administrator determines that a State or 
Indian Tribe is not in compliance with this section, the Administrator 
may withhold proceeds that are otherwise to be distributed to such 
State or Indian Tribe. Proceeds withheld pursuant to this subsection 
may be distributed among the remaining States and Indian Tribes in 
accordance with the formula determined pursuant to subsection (d).

``SEC. 725. PROGRAM REVIEW.

    ``The Administrator shall--
            ``(1) in conjunction with the establishment of emission 
        allowances under section 715(c)(2) for a compliance period, 
        conduct a review of the implementation of this title;
            ``(2) in conducting each such review, seek public comment; 
        and
            ``(3) upon completion of each such review, submit to 
        Congress a report with the results of such review, including 
        recommendations, if any, for legislation or administrative 
        actions appropriate to achieve the targets under section 711(a) 
        and the reductions under section 711(b).

``SEC. 726. ADVISORY BOARD.

    ``(a) Establishment.--The Administrator shall establish an advisory 
board to provide independent advice and recommendations to the 
Environmental Protection Agency with respect to the administration of 
this title.
    ``(b) Membership.--The advisory board shall be composed of members 
representing--
            ``(1) community-based organizations, including such 
        organizations that carry out initiatives relating to 
        environmental justice;
            ``(2) State governments;
            ``(3) Tribal Governments;
            ``(4) local governments;
            ``(5) labor organizations;
            ``(6) nongovernmental and environmental organizations;
            ``(7) agricultural organizations;
            ``(8) private sector organizations, including 
        representatives of industries and businesses required to comply 
        with the requirements of this title; and
            ``(9) experts in the field of--
                    ``(A) socioeconomic analysis;
                    ``(B) health and environmental effects;
                    ``(C) pollution monitoring and exposure evaluation;
                    ``(D) environmental law and civil rights law;
                    ``(E) environmental health science research; or
                    ``(F) agricultural science research.
    ``(c) FACA.--Chapter 10 of title 5, United States Code (commonly 
known as the Federal Advisory Committee Act), shall apply to the 
advisory board.

           ``PART C--EMISSIONS REDUCTIONS IN EVERY COMMUNITY

``SEC. 731. DEFINITIONS.

    ``In this part:
    ``(a) Cleaner Air Community.--The term `Cleaner Air Community' 
means a community designated as a Cleaner Air Community under section 
733.
    ``(b) Cleaner Air Community Fund.--The term `Cleaner Air Community 
Fund' means the fund established under section 104 of the Climate 
Pollution Standard and Community Investment Act of 2024.
    ``(c) Community.--The term `community' means a county, 
municipality, town, township, village, parish, borough, or other unit 
of general government below the State level.

``SEC. 732. USE OF FUNDS FROM THE CLEANER AIR COMMUNITY FUND.

    ``(a) In General.--
            ``(1) Assistance.--Beginning in 2027 and each year 
        thereafter, the Administrator shall provide assistance pursuant 
        to this section using amounts made available in the Cleaner Air 
        Community Fund.
            ``(2) Priority.--In providing assistance pursuant to this 
        section using amounts made available in the Cleaner Air 
        Community Fund, the Administrator shall prioritize providing 
        assistance to communities designated as a Cleaner Air Community 
        under section 733.
    ``(b) Environmental and Climate Justice Block Grants.--The 
Administrator is authorized to use amounts made available in the 
Cleaner Air Community Fund to award grants and provide technical 
assistance under section 138.
    ``(c) Enhanced Air Pollution Monitoring.--
            ``(1) In general.--The Administrator is authorized to award 
        grants using amounts made available in the Cleaner Air 
        Community Fund to local and State governments, Indian Tribes, 
        air pollution control agencies, and other public or nonprofit 
        private agencies, institutions, and organizations with 
        appropriate technical capacity to support additional emissions 
        monitoring in disadvantaged communities, as determined by the 
        Administrator.
            ``(2) Applications.--To be eligible to receive a grant 
        under this subsection, an entity described in paragraph (1) 
        shall submit an application to the Administrator at such time, 
        in such form, and containing such information and assurances as 
        the Administrator may require.
            ``(3) Prioritization of use of funds.--The Administrator 
        shall prioritize awarding grants under this subsection to 
        entities that propose, in an application submitted under 
        paragraph (2), to use grants to--
                    ``(A) improve the reporting, monitoring, and 
                enforcement of the requirements of this title;
                    ``(B) improve air quality monitoring, including by 
                the use of hyperlocal air monitoring equipment and 
                techniques, in locations determined by the 
                Administrator to have insufficient monitoring equipment 
                and capabilities; or
                    ``(C) inform management decisions, such as the 
                placement or relocation of stationary air pollution 
                monitors, transportation or land use planning, 
                investments in mitigating air pollution sources, and 
                other planning decisions, by relevant local, State, and 
                Tribal governments.
    ``(d) Development of Emissions Reduction Plans.--
            ``(1) In general.--The Administrator is authorized to award 
        grants and provide technical assistance using amounts made 
        available in the Cleaner Air Community Fund to local and State 
        governments, Indian Tribes, air pollution control agencies, and 
        other public or nonprofit private agencies, institutions, and 
        organizations that are located in a Cleaner Air Community to 
        develop multiyear plans to reduce air pollution in such 
        community.
            ``(2) Plan contents.--A plan developed under paragraph (1) 
        shall include--
                    ``(A) a proposal to develop effective and practical 
                processes, methods, and devices to reduce, prevent, or 
                control air pollution, including greenhouse gas 
                emissions, within a Cleaner Air Community; and
                    ``(B) a description of the expected use of funds to 
                develop such proposals.
            ``(3) Community engagement.--Any entity receiving a grant 
        to develop a multi-year plan under paragraph (1) shall 
        demonstrate sufficient community engagement with local 
        residents in the development of a plan.
    ``(e) Implementation of Emissions Reduction Plans.--The 
Administrator is authorized to award grants using amounts made 
available in the Cleaner Air Community Fund to local and State 
governments, Indian Tribes, air pollution control agencies, and other 
public or nonprofit private agencies, institutions, and organizations 
that received a grant and developed a plan under subsection (d)--
            ``(1) if the Administrator determines such entity 
        demonstrated sufficient community engagement with local 
        residents in the development of the plan; and
            ``(2) for purposes of implementing the plan.
    ``(f) Community-Based Health Services in Cleaner Air Communities.--
The Administrator, in consultation with the Secretary of Health and 
Human Services, is authorized to award grants using amounts made 
available in the Cleaner Air Community Fund to local and State 
governments, Indian Tribes, air pollution control agencies, and other 
public or nonprofit private agencies, institutions, and organizations, 
which shall be used to--
            ``(1) support community-based health centers, health 
        monitoring, and other health care services located in a Cleaner 
        Air Community; and
            ``(2) address the health impacts of individuals who reside 
        or work in a Cleaner Air Community.

``SEC. 733. CLEANER AIR COMMUNITIES.

    ``(a) Designation of Cleaner Air Communities.--Beginning after 
compliance period 1, the Administrator shall designate, for a period of 
5 years, communities as Cleaner Air Communities in accordance with this 
section.
    ``(b) Eligibility.--A community shall be eligible to be designated 
as a Cleaner Air Community under subsection (a) if the community, or a 
census tract within such community, experiences an increase of 
emissions of any greenhouse gas, hazardous air pollutant, or criteria 
air pollutant on an annual basis over the average annual quantity of 
emissions of the pollutant during the previous compliance period.
    ``(c) Petition for Designation.--Any person may petition the 
Administrator to designate a community as a Cleaner Air Community under 
subsection (a).
    ``(d) Consideration of Petition.--The Administrator shall review a 
petition under subsection (c) and make a determination on such petition 
not later than 1 year after receiving such petition.
    ``(e) Redesignation of Cleaner Air Communities.--Not later than 4 
years after a community is designated as a Cleaner Air Community, the 
Administrator shall determine whether to extend the designation of the 
community as a Cleaner Air Community for another 5-year period 
beginning at the end of the last year during which that community 
experienced an increase of pollutants as described in subsection (b).

``SEC. 734. ANNUAL REPORT TO CONGRESS.

    ``Beginning in 2027, not later than 180 days after the end of each 
year, the Administrator shall submit to Congress a report for the 
previous year, which shall include--
            ``(1) a description of each grant awarded and the technical 
        assistance provided under this part or section 138 pursuant to 
        this part;
            ``(2) the amount of funding that remains available in the 
        Cleaner Air Community Fund;
            ``(3) an assessment of the air quality monitoring needs of 
        disadvantaged communities, as determined by the Administrator, 
        including a determination whether additional air quality 
        monitoring is necessary to determine the eligibility of 
        communities to be designated as Cleaner Air Communities; and
            ``(4) an assessment of the air quality and public health of 
        Cleaner Air Communities and efforts to reduce air pollution in 
        such communities.

``SEC. 735. REGULATIONS.

    ``The Administrator shall issue any regulations necessary to 
implement this part not later than 36 months after the date of 
enactment of this part.

                ``PART D--NEGATIVE EMISSIONS ACTIVITIES

``SEC. 741. DEFINITIONS.

    ``In this part:
            ``(1) Beginning producer.--The term `beginning producer' 
        means an individual that--
                    ``(A)(i) has not operated a farm or ranch; or
                    ``(ii) has operated a farm or ranch for not more 
                than 10 years; and
                    ``(B) meets such other criteria as the 
                Administrator, in consultation with the Secretary, may 
                establish.
            ``(2) Eligible carbon removal technology.--
                    ``(A) In general.--The term `eligible carbon 
                removal technology' means any equipment, technique, or 
                technology, placed into service after January 1, 2023, 
                that--
                            ``(i) captures carbon dioxide directly from 
                        ambient air or seawater, as determined 
                        appropriate by the Administrator; and
                            ``(ii) permanently stores such captured 
                        carbon dioxide--
                                    ``(I) in a subsurface geologic 
                                formation or in materials, including 
                                building materials and mineralized 
                                carbon materials; or
                                    ``(II) using other permanent 
                                storage methods, as determined by the 
                                Administrator.
                    ``(B) Exclusion.--The term `eligible carbon removal 
                technology' does not include any equipment, technique, 
                or technology that--
                            ``(i) captures carbon dioxide which is 
                        deliberately released from naturally occurring 
                        subsurface springs; or
                            ``(ii) stores or uses carbon dioxide for 
                        enhanced oil recovery.
            ``(3) Eligible land.--
                    ``(A) In general.--The term `eligible land' means 
                land on which agricultural commodities, livestock, or 
                forest-related products are produced.
                    ``(B) Inclusions.--The term `eligible land' 
                includes the following:
                            ``(i) Cropland.
                            ``(ii) Grassland.
                            ``(iii) Rangeland.
                            ``(iv) Pasture land.
                            ``(v) Nonindustrial private forest land.
                            ``(vi) Other agricultural land (including 
                        cropped woodland, marshes, environmentally 
                        sensitive areas, and agricultural land used for 
                        the production of livestock) on which 
                        identified or expected resource concerns 
                        related to agricultural production could be 
                        addressed through a contract under the Program 
                        as determined by the Administrator, in 
                        consultation with the Secretary.
            ``(4) Eligible practice.--The term `eligible practice' 
        means an activity included on the list established under 
        section 744(a).
            ``(5) High-quality project.--The term `high-quality 
        project' means carrying out one or more eligible practices, 
        which result in (as determined by the Administrator) 
        verifiable, permanent, and additional reductions or avoidance 
        of greenhouse gas emissions or sequestration of greenhouse 
        gases.
            ``(6) Payment.--The term `payment' means financial 
        assistance provided to a producer for performing one or more 
        practices under this part.
            ``(7) Producer.--The term `producer' means an individual or 
        entity capable of carrying out an eligible practice.
            ``(8) Program.--The term `Program' means the program 
        established under section 743.
            ``(9) Secretary.--The term `Secretary' means the Secretary 
        of the Department of Agriculture.
            ``(10) Socially disadvantaged producer.--The term `socially 
        disadvantaged producer' means a farmer or rancher who is a 
        member of a group whose members have been subjected to racial 
        or ethnic prejudice because of their identity as members of the 
        group without regard to their individual qualities.

``SEC. 742. PURPOSES.

    ``The purposes of the Program are to incentivize activities that 
result in reduction or avoidance of greenhouse gas emissions, or 
sequestration of greenhouse gases, and to optimize environmental 
benefits, by--
            ``(1) utilizing methodologies, in consultation with the 
        Secretary for agricultural production and forest management 
        practices on eligible land, for each eligible practice type for 
        quantifying and verifying potential and actual reduction and 
        avoidance of greenhouse emissions and sequestration of 
        greenhouse gases;
            ``(2) avoiding, to the maximum extent practicable, the need 
        for regulatory programs by assisting producers implementing 
        eligible practices on eligible land in reducing or avoiding 
        greenhouse gas emissions, or sequestering of greenhouse gases 
        in order to achieve economy-wide greenhouse gas emissions 
        reduction targets pursuant to section 702;
            ``(3) avoiding or minimizing, to the maximum extent 
        practicable, adverse effects on human health or the environment 
        resulting from the implementation of practices under the 
        Program;
            ``(4) assisting producers implementing eligible practices 
        on eligible land with adaptation to changing climatic 
        conditions and mitigating against increasing weather volatility 
        and drought; and
            ``(5) enabling the participation of beginning producers and 
        socially disadvantaged producers in the Program.

``SEC. 743. ESTABLISHMENT.

    ``(a) In General.--The Administrator, in consultation with the 
Secretary with respect to agricultural production and forest management 
practices on eligible land, shall establish a program to enter into 
contracts with producers to carry out practices using amounts made 
available in the Negative Emissions Activities Fund.
    ``(b) Regulations.--Not later than 2 years after the date of 
enactment of this part, the Administrator shall promulgate regulations 
to carry out this part.

``SEC. 744. ELIGIBLE PRACTICES.

    ``(a) List of Eligible Practices.----
            ``(1) Listing.--The Administrator, in consultation with the 
        Secretary with respect to agricultural production and forest 
        management activities on eligible land, shall establish, and 
        may periodically revise, a list of activities that are eligible 
        practices.
            ``(2) Requirements.--The Administrator may include an 
        activity as an eligible practice on the list established under 
        paragraph (1) if the Administrator, in consultation with the 
        Secretary with respect to agricultural production and forest 
        management practices on eligible land, determines the activity 
        can reduce or avoid greenhouse gas emissions or sequester 
        greenhouse gases, consistent with the purposes described in 
        section 742.
            ``(3) Modifications to list.--The Administrator may at any 
        time, by rule, add or remove an activity to or from the list of 
        eligible practices in accordance with paragraph (2).
    ``(b) Establishment of Initial List.--In establishing the initial 
list under subsection (a), the Administrator, in consultation with the 
Secretary with respect to agricultural production and forest management 
practices on eligible land, shall give priority to consideration of 
activities for which there are well developed methodologies for 
quantifying the reduction or avoidance of greenhouse gas emissions or 
sequestration of greenhouse gases with such modifications as the 
Administrator considers appropriate. At a minimum, the initial list 
prepared under this section shall include the following activities that 
reduce or avoid greenhouse gas emissions or sequester greenhouse gases:
            ``(1) Agricultural, grassland, and rangeland sequestration 
        and management activities on eligible land.
            ``(2) Changes in carbon stocks attributed to land use 
        change and forestry activities on eligible land.
            ``(3) Manure management and disposal on eligible land.
            ``(4) Livestock management on eligible land.
            ``(5) Eligible carbon removal technologies.
    ``(c) Methodologies.--
            ``(1) Establishment.--The Administrator, in consultation 
        with the Secretary with respect to agricultural production and 
        forest management practices on eligible land, shall establish 
        for each type of eligible practice a standardized methodology 
        for determining the quantity of reduction or avoidance of 
        greenhouse gas emissions, or sequestration of greenhouse gases, 
        expected to be achieved by the type of eligible practice, 
        including protocols for monitoring, reporting, and verifying 
        performance, and accounting for uncertainty.
            ``(2) Preexisting methodologies.--In establishing a 
        standard methodology for each type of eligible practice under 
        paragraph (1), the Administrator shall consider basing such 
        standard methodology on methodologies that exist as of the date 
        of enactment of this part.

``SEC. 745. APPLICATIONS.

    ``(a) In General.--The Administrator may enter into a contract with 
a producer under section 746 if--
            ``(1) the producer submits to the Administrator an 
        application that proposes to carry out one or more eligible 
        practices; and
            ``(2) the Administrator approves such application under 
        this section.
    ``(b) Evaluation Criteria.--The Administrator shall develop 
criteria for evaluating applications submitted under subsection (a), 
which shall include consideration of the potential quantity and cost 
effectiveness of reduction or avoidance of greenhouse gas emissions, or 
sequestration of greenhouse gases, from the proposed eligible 
practices.
    ``(c) Prioritization of Applications.--In evaluating applications 
submitted under subsection (a), the Administrator shall prioritize 
approving applications based on--
            ``(1) the anticipated quantity of reduction or avoidance of 
        greenhouse gas emissions, or sequestration of greenhouse gases 
        from the proposed eligible practices;
            ``(2) the cost to carry out the proposed eligible practices 
        relative to other, similar eligible practices;
            ``(3) how effectively and comprehensively the proposed 
        eligible practices are expected to achieve the reduction or 
        avoidance of greenhouse gas emissions, or sequestration of 
        greenhouse gases on eligible land;
            ``(4) the inclusion of high-quality projects; and
            ``(5) how well the proposed eligible practices fulfill the 
        purposes of the Program.
    ``(d) Grouping of Applications.--To the greatest extent 
practicable, the Administrator shall evaluate applications that propose 
to carry out the same or similar eligible practices together.
    ``(e) Geographic Scope.--The Administrator shall, to the extent 
practicable, seek to approve applications from a diversity of 
geographic regions of the United States, taking into account factors 
such as soil type, cropping history, and water availability.
    ``(f) Set Aside for Use of Eligible Carbon Removal Technology.--The 
Administrator shall ensure that, each year, not less than 20 percent of 
the amount provided under contracts entered into under section 746 be 
provided to carry out eligible practices that use eligible carbon 
removal technology.
    ``(g) Reverse Auction.--
            ``(1) In general.--The Administrator may approve 
        applications submitted under subsection (a) using a reverse 
        auction mechanism to promote the most cost effective means of 
        achieving the anticipated reduction or avoidance of greenhouse 
        gas emissions, or sequestration of greenhouse gases, pursuant 
        to contracts entered into under section 746.
            ``(2) Multifactor bidding.--When using a reverse auction 
        mechanism under paragraph (1), the Administrator may 
        incorporate noncost factors into the auction system, and 
        prioritize approving applications that propose to carry out 
        eligible practices that--
                    ``(A) maximize the net greenhouse gas emissions 
                reductions;
                    ``(B) minimize the amount of greenhouse gas 
                emissions released by carrying out the eligible 
                practices;
                    ``(C) would increase the diversity of types of 
                eligible practices carried out pursuant to section 746;
                    ``(D) would be carried out in geographically 
                diverse areas;
                    ``(E) support economic development or job creation 
                in disadvantaged or rural communities, as determined by 
                the Administrator;
                    ``(F) include robust public engagement and 
                community benefits commitments;
                    ``(G) provide benefits to beginning producers and 
                socially disadvantaged producers; and
                    ``(H) include high-quality projects.
    ``(h) Third-Party Aggregators.--The Administrator may, when 
evaluating applications under this section, approve applications from 
entities that aggregate eligible practices from multiple producers.

``SEC. 746. CONTRACTS AND PAYMENTS.

    ``(a) Contracts.--After approving an application under section 745, 
the Administrator shall seek to enter into a contract with the producer 
that submitted the application.
    ``(b) Required Provisions.--A contract entered into under 
subsection (a) shall--
            ``(1) require the producer to develop and implement a 
        program plan which--
                    ``(A) shall be approved by the Administrator, and 
                may include such conditions the Administrator may 
                require; and--
                    ``(B) shall provide for how the producer will--
                            ``(i) carry out the eligible practices 
                        proposed in the application;
                            ``(ii) manage, maintain, and improve such 
                        eligible practices for the duration of the 
                        contract;
                            ``(iii) provide for the verification of the 
                        actual quantity of greenhouse gas emissions 
                        reduced or avoided, or greenhouse gases 
                        sequestered, from such eligible practices in 
                        accordance with section 747(b); and
                            ``(iv) adequately mitigate environmental 
                        impacts (including impacts on biodiversity, 
                        land use, and water quality) with carrying out 
                        such eligible practices;
            ``(2) require the producer to maintain and supply 
        information required by the Administrator to determine 
        compliance with, and the effectiveness of, the program plan;
            ``(3) if the producer transfers the rights, title, and 
        interests in eligible land subject to the contract (unless the 
        transferee enters into an agreement with the Administrator to 
        assume all obligations of the contract), require the producer 
        to refund all payments received under the Program, as 
        determined by the Administrator;
            ``(4) prohibit the producer from using payments made under 
        subsection (e) to conduct any activities that would undermine 
        the purposes of the Program;
            ``(5) include a provision that a producer may not be 
        considered in violation of the contract for failure to comply 
        with the contract due to circumstances beyond the control of 
        the producer, including a disaster or other similar condition, 
        as determined by the Administrator;
            ``(6) provide for annual payments to the producer in 
        accordance with subsection (e); and
            ``(7) include any additional provisions the Administrator 
        determines are necessary to carry out the Program.
    ``(c) Renewal.--If the Administrator determines that further 
implementation of a producer's program plan would continue to result in 
cost-effective reduction or avoidance of greenhouse gas emissions, or 
sequestration of greenhouse gases, the Administrator may seek to renew 
the existing contract in the last year of the contract term if the 
producer--
            ``(1) demonstrates compliance with the provisions of the 
        existing contract; and
            ``(2) agrees to adopt and continue to integrate new or 
        improved eligible practices, as determined by the 
        Administrator.
    ``(d) Term of Contracts.--
            ``(1) In general.--A contract entered into or renewed under 
        this section shall be for a term of--
                    ``(A) not less than 5 years; and
                    ``(B) not more than 20 years.
            ``(2) Factors for determining contract duration.--The 
        Administrator shall determine the term of a contract entered 
        into or renewed under this section based on--
                    ``(A) the eligible practices included in the 
                producer's program plan;
                    ``(B) the opportunities for greenhouse gas emission 
                reduction or avoidance, or sequestration of greenhouse 
                gases, from such eligible practices; and
                    ``(C) other factors determined appropriate by the 
                Administrator.
    ``(e) Annual Payments.--
            ``(1) In general.--The Administrator shall provide annual 
        payments to a producer with which the Administrator enters into 
        or renews a contract under this section using amounts made 
        available in the Negative Emissions Activities Fund.
            ``(2) Amount.--
                    ``(A) Primary consideration.--The Administrator 
                shall determine the amount of an annual payment under 
                paragraph (1) based on--
                            ``(i) the expected quantity of greenhouse 
                        gas emission reduction or avoidance, or 
                        sequestration of greenhouse gases, resulting 
                        from the eligible practices included in the 
                        program plan;
                            ``(ii) the amount and scale of high-quality 
                        projects included in the program plan; and
                            ``(iii) if applicable, the results of a 
                        reverse auction carried out pursuant to section 
                        745(g).
                    ``(B) Additional considerations.--In determining 
                the amount of an annual payment under this paragraph, 
                the Administrator may also consider--
                            ``(i) costs incurred by the producer 
                        associated with developing and implementing the 
                        program plan, including costs associated with 
                        plans, designs, materials, equipment, and 
                        labor;
                            ``(ii) income forgone by the producer from 
                        eligible land;
                            ``(iii) the extent to which compensation 
                        would ensure long-term continued maintenance, 
                        management, and improvement of one or more 
                        practices included in the program plan; and
                            ``(iv) other factors as determined 
                        appropriate by the Administrator.
                    ``(C) Additional payments for maintenance of 
                program plans.--If the Administrator and a producer 
                agree to renew a contract pursuant to subsection (c), 
                the Administrator may provide the producer a separate 
                payment for purposes of maintaining the previously 
                implemented program plan. Notwithstanding subparagraph 
                (A), such separate payment may be based on actual 
                measured and verified greenhouse gas emission reduction 
                or avoidance, or sequestration of greenhouse gases.
            ``(3) Advance payments.--
                    ``(A) In general.--The Administrator may, if 
                requested by a producer, provide a portion of an annual 
                payment in advance for costs related to purchasing 
                materials, equipment, or contracting in order to 
                implement one or more eligible practices included in 
                the producer's program plan.
                    ``(B) Return of funds.--If a payment provided in 
                advance under subparagraph (A) is not expended during 
                the 90-day period beginning on the date of receipt of 
                the payment, the remaining amounts of such payment 
                shall be returned to the Negative Emissions Activities 
                Fund within a reasonable timeframe, as determined by 
                the Administrator.
                    ``(C) Notification and documentation.--The 
                Administrator shall--
                            ``(i) notify each producer at the time of 
                        enrollment in the Program of the option to 
                        receive advance payments; and
                            ``(ii) document each request to receive 
                        advance payments.
            ``(4) Financial assistance from other sources.--
                    ``(A) In general.--Any payments received by a 
                producer from a State, private organization, or person 
                for the implementation of one or more eligible 
                practices on eligible land shall be in addition to the 
                payments provided to the producer pursuant to this 
                subsection.
                    ``(B) Prohibition on double counting.--The 
                Administrator may require, as a condition of the 
                contract, that a producer who receives payments for 
                implementing eligible practices under this section may 
                not also use such eligible practices as a compliance 
                mechanism for another greenhouse gas emissions 
                management program, including any foreign, Federal, 
                State, local, or voluntary private greenhouse gas 
                emissions management program, if such use would 
                undermine the goals of section 702.
            ``(5) Limitation of payments.--The Administrator may not 
        make payments under this section in excess of the amounts made 
        available in the Negative Emissions Activities Fund. If the 
        aggregate of such payments in any calendar year will exceed 
        such amount, the Administrator shall reduce the amount of 
        payments to the extent necessary to comply with the requirement 
        in the first sentence.
    ``(f) Modification or Termination of Contracts.--
            ``(1) Voluntary modification or termination.--The 
        Administrator may modify or terminate a contract entered into 
        or renewed with a producer under this section if--
                    ``(A) the producer agrees to the modification or 
                termination; and
                    ``(B) the Administrator determines that the 
                modification or termination is in the public interest.
            ``(2) Involuntary termination.--The Administrator may 
        terminate a contract under the program if the Administrator 
        determines that the producer violated the contract.
            ``(3) Repayment.--If a contract is terminated, the 
        Administrator may--
                    ``(A) allow the producer to retain payments already 
                received under the contract; or
                    ``(B) require repayment, in whole or in part, of 
                payments received.
    ``(g) Enforcement of Terms and Conditions.--
            ``(1) Termination.--Notwithstanding subsection (f), if the 
        Administrator determines that a producer violated a term or 
        condition of a contract entered into or renewed under this 
        section, and such violation warrants termination of the 
        contract (as determined by the Administrator), the producer--
                    ``(A) may not receive payments under the contract; 
                and
                    ``(B) shall refund to the Administrator all or a 
                portion of the payments received by the owner or 
                operator under the contract, including any interest on 
                the payments, as determined by the Administrator.
            ``(2) Other penalties.--Notwithstanding subsection (f), if 
        the Administrator determines that a producer violated a term or 
        condition of a contract entered into or renewed under this 
        section, but such violation does not warrant termination of the 
        contract, the producer shall refund to the Administrator, or 
        accept adjustments to, the payments provided to the owner or 
        operator, as the Administrator determines to be appropriate.

``SEC. 747. DUTIES OF THE ADMINISTRATOR.

    ``(a) Technical Assistance.--
            ``(1) In general.--To the extent appropriate, the 
        Administrator, in consultation with the Secretary with respect 
        to agricultural production and forest management practices on 
        eligible land, shall assist producers with implementing program 
        plans by providing to producers technical assistance, 
        education, and outreach, including with respect to information 
        and training to aid in the design, installation, and 
        implementation of program plans.
            ``(2) Prioritized producers.--The Administrator shall 
        prioritize providing technical assistance, education, and 
        outreach under paragraph (1) to beginning producers and 
        socially disadvantaged producers.
    ``(b) Verification of Program Plans.--The Administrator shall 
establish requirements for how producers may verify the actual quantity 
of greenhouse gas emissions reduced or avoided, or greenhouse gases 
sequestered, from eligible practices under section 746(b)(1)(B). The 
producer shall submit to the Administrator a report prepared by a 
third-party verifier accredited pursuant to paragraph (2) that provides 
such information as the Administrator requires to verify such 
quantities.
            ``(1) Schedule.--The Administrator shall prescribe a 
        schedule for the submission of reports under this subsection, 
        which shall occur not less than once during the term of each 
        contract.
            ``(2) Verifier accreditation.--
                    ``(A) In general.--The Administrator shall 
                establish a process and requirements for periodic 
                accreditation of third-party verifiers to ensure that 
                such verifiers are professionally qualified and have no 
                conflicts of interest.
                    ``(B) Federal accreditation.--The process and 
                requirements established under subparagraph (A) may 
                include--
                            ``(i) accreditation standards for third-
                        party verifiers; and
                            ``(ii) training and testing requirements 
                        for third-party verifiers.
                    ``(C) Public accessibility.--Each third-party 
                verifier meeting the requirements for accreditation 
                established pursuant to subparagraph (A) shall be 
                listed in a publicly accessible database, which shall 
                be maintained and updated by the Administrator.
    ``(c) Audits.--The Administrator shall conduct, on an annual basis, 
random audits of eligible activities carried out by producers under 
program plans and the activities of third-party verifiers. At a 
minimum, the Administrator shall conduct audits each year of a 
representative sample of eligible activities and geographical areas. 
Nothing in this subsection prevents the Administrator from conducting 
any other audit the Administrator considers to be necessary.
    ``(d) Assessment of Quantification Methodologies.--The 
Administrator shall regularly assess the verification requirements 
established under subsection (b) and develop new requirements for 
verification as needed in order to effectively carry out this part.
    ``(e) Coordination With Other Federal Agencies.--In carrying out 
this part, the Administrator shall coordinate activities of the 
Environmental Protection Agency with the Department of Agriculture and 
other relevant Federal agencies implementing conservation programs to 
align protocols, decrease administrative burdens, and increase 
enrollment in beneficial climate practices.

``SEC. 748. REPORTING AND DATABASE.

    ``(a) Report Required.--Not later than January 1, 2029, and every 2 
years thereafter, the Administrator shall submit to Congress a report 
on the status of eligible practices funded under this part, including--
            ``(1) the amount of payments awarded;
            ``(2) results of the eligible practices associated with 
        such payments, including estimates of the quantity of reduction 
        or avoidance of greenhouse gas emissions, or increases in 
        sequestration of greenhouse gases; and
            ``(3) recommendations to improve the effectiveness of such 
        eligible practices.
    ``(b) Practice Database.--
            ``(1) In general.--The Administrator shall use the data 
        reported under subsection (a) to establish and maintain a 
        publicly available database that provides--
                    ``(A) a compilation and analysis of eligible 
                practices being carried out under program plans; and
                    ``(B) a list of recommended eligible practices.
            ``(2) Privacy.--Information provided under paragraph (1) 
        shall be transformed into a statistical or aggregate form so as 
        to not include any identifiable or personal information of 
        individual producers.

``SEC. 749. PROGRAM REVIEW AND REVISION.

    ``At least once every 5 years, the Administrator, in consultation 
with the Secretary with respect to agricultural production and forest 
management practices on eligible land, shall review and, as 
appropriate, update and revise--
            ``(1) the list of eligible practices established under 
        section 744(a);
            ``(2) the methodologies established under section 744(c);
            ``(3) the criteria to evaluate applications under section 
        745;
            ``(4) the Program, as necessary, to increase participation 
        by beginning producers and socially disadvantaged producers; 
        and
            ``(5) any other requirements established under this part to 
        ensure the effectiveness of achieving the purposes in section 
        742, including by incorporating new data and evidence about 
        actual emissions outcomes of practices to improve model 
        certainty and the accuracy of emission reduction estimates.

           ``PART E--INTERNATIONAL RESERVE ALLOWANCE PROGRAM

``SEC. 751. DEFINITIONS.

    ``In this part:
            ``(1) Covered article.--The term `covered article' means 
        any good which--
                    ``(A) is imported into the United States: and
                    ``(B) contains greater than 100 pounds of any 
                combination of any covered primary good.
            ``(2) Covered imported good.--The term `covered imported 
        good' means--
                    ``(A) a covered primary good; or
                    ``(B) a covered article.
            ``(3) Covered primary good.--The term `covered primary 
        good' means any good which--
                    ``(A) is imported into the United States; and
                    ``(B) is produced by an eligible industrial sector 
                listed pursuant to section 723.

``SEC. 752. INTERNATIONAL RESERVE ALLOWANCE PROGRAM.

    ``(a) Establishment.--
            ``(1) In general.--The Administrator, with the concurrence 
        of the Commissioner responsible for U.S. Customs and Border 
        Protection and in consultation with additional Federal agencies 
        as determined appropriate by the Administrator, shall issue 
        regulations--
                    ``(A) establishing an international reserve 
                allowance program for the sale, exchange, purchase, 
                transfer, and banking of international reserve 
                allowances for covered imported goods;
                    ``(B) ensuring that the price for purchasing an 
                international reserve allowance is equivalent to the 
                average of the previous four auction clearing prices 
                for emission allowances under section 720;
                    ``(C) establishing a general methodology for 
                calculating the quantity of international reserve 
                allowances that an importer of a covered imported good 
                must submit;
                    ``(D) requiring the submission of an appropriate 
                amount of international reserve allowances for covered 
                imported goods entering the customs territory of the 
                United States;
                    ``(E) exempting from the requirements of 
                subparagraph (D) covered imported goods that are--
                            ``(i) determined, by independent third-
                        party verification, to meet the relevant 
                        output-based allocation benchmark under section 
                        723(b);
                            ``(ii) produced in any foreign country that 
                        the United Nations has identified as among the 
                        least developed of developing countries; or
                            ``(iii) produced in any foreign country 
                        that the Administrator has determined to be 
                        responsible for less than 0.5 percent of total 
                        global greenhouse gas emissions and less than 5 
                        percent of United States imports of covered 
                        imported goods with respect to the relevant 
                        eligible industrial sector;
                    ``(F) specifying the procedures that U.S. Customs 
                and Border Protection will apply for the declaration 
                and entry of covered imported goods into the customs 
                territory of the United States;
                    ``(G) establishing procedures that prevent 
                circumvention of the international reserve allowance 
                program requirements for covered imported goods that 
                are manufactured or processed in more than one foreign 
                country; and
                    ``(H) publishing, on an annual basis, relevant 
                information regarding the quantity of international 
                reserve allowances sold, the quantity of covered 
                imported goods entering the customs territory of the 
                United States, relevant greenhouse gas emissions 
                information of such goods, the country of origin of 
                such goods, and other information as determined 
                relevant by the Administrator.
            ``(2) Purpose of program.--The Administrator shall 
        establish the program under paragraph (1) consistent with 
        international agreements to which the United States is a party, 
        in a manner that minimizes the likelihood of carbon leakage as 
        a result of differences between--
                    ``(A) the direct and indirect costs of complying 
                with part B of this title; and
                    ``(B) the direct and indirect costs, if any, of 
                complying in other countries with greenhouse gas 
                regulatory programs, requirements, export tariffs, or 
                other measures adopted or imposed to reduce greenhouse 
                gas emissions.
    ``(b) Greenhouse Gas Emissions Data for Covered Imported Goods.--
            ``(1) In general.--Under the regulations established under 
        subsection (a), the Administrator shall require independent, 
        third-party verification of greenhouse gas emissions data, 
        including attributable greenhouse gas emissions, for all 
        relevant stages of production of each covered imported good 
        entering the customs territory of the United States.
            ``(2) Failure to produce verified greenhouse gas emissions 
        data.--If the Administrator determines that an importer of a 
        covered imported good has failed to provide accurate, 
        sufficient, and independent, third-party verified data, the 
        Administrator shall make a determination of the greenhouse gas 
        emissions associated with the production of such good based on 
        the best available data related to the greenhouse gas emissions 
        and production data from all facilities which produce similar 
        goods within the country of origin, the greenhouse gas 
        emissions intensity of the general economy of the country of 
        origin of such good, and other factors determined relevant by 
        the Administrator.
    ``(c) Disposition of Proceeds.--
            ``(1) Clean energy rebate program supplemental funding.--50 
        percent of the proceeds from the sale of international reserve 
        allowances under this section in each fiscal year shall be made 
        available to the Secretary of the Treasury to carry out the 
        Clean Energy Rebate Program established by section 102 of the 
        Climate Pollution Standard and Community Investment Act of 
        2024.
            ``(2) Administrative expenses.--The Administrator may use, 
        including the transfer of funds to the Commissioner responsible 
        for U.S. Customs and Border Protection, not more than 10 
        percent of the proceeds from the sale of international reserve 
        allowances under this section in each fiscal year to cover the 
        administrative expenses associated with administering this 
        section.
            ``(3) Remaining revenues.--The Administrator shall deposit 
        any remaining proceeds from the sale of international reserve 
        allowances under this section in a fiscal year in equal shares 
        to the funds established by sections 103, 104, 105, and 106 of 
        the Climate Pollution Standard and Community Investment Act of 
        2024.
    ``(d) Effective Date.--The international reserve allowance program 
shall not apply to imports of covered imported goods entering the 
customs territory of the United States before January 1, 2027.
    ``(e) Covered Entities.--International reserve allowances shall not 
be used by covered entities to comply with part B of this title.''.
    (b) Conforming Amendments.--
            (1) Federal enforcement.--Section 113 of the Clean Air Act 
        (42 U.S.C. 7413) is amended--
                    (A) in subsection (a)(3), by striking ``or title 
                VI,'' and inserting ``title VI, or title VII'';
                    (B) in subsection (b)(2), by striking ``or title 
                VI'' and inserting ``title VI, or title VII'';
                    (C) in subsection (c)--
                            (i) in the first sentence of paragraph (1), 
                        by striking ``or title VI (relating to 
                        stratospheric ozone control),'' and inserting 
                        ``title VI, or title VII,''; and
                            (ii) in the first sentence of paragraph 
                        (3), by striking ``or VI'' and inserting ``VI, 
                        or VII'';
                    (D) in subsection (d)(1)(B), by striking ``or VI'' 
                and inserting ``VI, or VII''; and
                    (E) in subsection (f), in the first sentence, by 
                striking ``or VI'' and inserting ``VI, or VII''.
            (2) Inspections, monitoring, and entry.--Section 114(a) of 
        the Clean Air Act (42 U.S.C. 7414(a)) is amended by striking 
        ``section 112, (ii)'' and inserting ``section 112, or any 
        regulation of greenhouse gas emissions under title VII, (ii)''.
            (3) Enforcement.--Section 304(f) of the Clean Air Act (42 
        U.S.C. 7604(f)) is amended--
                    (A) in paragraph (2), by striking ``or'' at the 
                end;
                    (B) in paragraph (3), by striking ``; or'' at the 
                end and inserting a comma;
                    (C) in paragraph (4), by striking the period at the 
                end and inserting ``, or''; and
                    (D) by inserting the following new paragraph after 
                paragraph (4):
            ``(5) any requirement of title VII,''.
            (4) Administrative proceedings and judicial review.--
        Section 307 of the Clean Air Act (42 U.S.C. 7607) is amended--
                    (A) in subsection (a), by striking ``, or section 
                306'' and inserting ``section 306, or title VII'';
                    (B) in subsection (b)(1), by striking ``section 
                120,'' in the first sentence and inserting ``section 
                120, any final action under title VII,''; and
                    (C) in subsection (d)(1)--
                            (i) in subparagraph (T), by striking ``, 
                        and'' at the end and inserting a comma;
                            (ii) by redesignating subparagraph (U) as 
                        subparagraph (V); and
                            (iii) by inserting the following new 
                        subparagraph after subparagraph (T):
            ``(U) the promulgation or revision of any regulation under 
        title VII, and''.
            (5) Energy independence and security act of 2007.--Section 
        548(b) of the Energy Independence and Security Act of 2007 (42 
        U.S.C. 17158(b)) is amended--
                    (A) in paragraph (1), by striking the ``or'' at the 
                end;
                    (B) in paragraph (2), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(3) section 722(e) of the Clean Air Act.''.

SEC. 102. CLEAN ENERGY REBATE PROGRAM.

    (a) In General.--The Secretary, in consultation with the Secretary 
of Agriculture and the Secretary of Health and Human Services, shall 
carry out a program to be known as the Clean Energy Rebate Program to 
provide rebates to eligible households using amounts made available to 
the Secretary under sections 722(c) and 752 of the Clean Air Act.
    (b) Streamlined Participation for Certain Beneficiaries.--The 
Secretary shall--
            (1) periodically estimate the number of eligible 
        households, and the number of participating eligible 
        households, for the Clean Energy Rebate Program; and
            (2) develop procedures, in consultation with the 
        Commissioner of Social Security, the Railroad Retirement Board, 
        the Secretary of Veterans Affairs, and relevant State agencies, 
        to ensure that beneficiaries of the benefit programs 
        administered by such entities receive the rebate for which such 
        beneficiaries are eligible under the Clean Energy Rebate 
        Program.
    (c) Rebate Amount.--The rebate amount for an eligible household 
under this section shall be determined by the Secretary, accounting 
for--
            (1) the amount of funding made available under section 
        722(c) of the Clean Air Act; and
            (2) the number of citizens and permanent legal residents of 
        the eligible household.
    (d) Delivery Mechanism.--The Secretary shall establish rules for 
providing rebates to eligible households under this section in an 
administratively simple manner, and on a quarterly basis through--
            (1) direct deposit into the eligible household's designated 
        bank account;
            (2) a State's electronic benefit transfer system; or
            (3) another Federal or State mechanism, if such a mechanism 
        is approved by the Secretary.
    (e) Administration by States.--
            (1) In general.--The Secretary may, in consultation with 
        the Secretary of Agriculture and the Secretary of Health and 
        Human Services, establish uniform national program standards to 
        enable States, upon the approval of the Secretary, to 
        administer the Clean Energy Rebate Program in the State. Such a 
        State shall establish procedures governing the administration 
        of the Clean Energy Rebate Program that the relevant State 
        agency determines best serve eligible households in the State, 
        including households with special needs, such as households 
        with elderly or disabled members, households in rural areas, 
        homeless individuals, and households residing on reservations 
        as defined in the Indian Child Welfare Act of 1978 and the 
        Indian Financing Act of 1974.
            (2) Coadministration with other programs.--Such a State may 
        coadminister the Clean Energy Rebate Program with other State 
        programs, such as the supplemental nutrition assistance program 
        authorized by the Food and Nutrition Act of 2008 in accordance 
        with the provisions of this title.
            (3) Additional requirements.--No State shall impose any 
        condition of eligibility for a rebate under this section other 
        than what is required by this section.
            (4) Oversight.--Each State administering the Clean Energy 
        Rebate Program shall--
                    (A) assume responsibility for the certification of 
                eligible households and for the issuance of rebates and 
                the control and accountability thereof; and
                    (B) report information to the Secretary at such a 
                time and manner as determined appropriate by the 
                Secretary.
    (f) Outreach.--The Secretary shall carry out a robust and 
comprehensive outreach program to ensure that eligible households learn 
of their eligibility for rebates and are advised of the opportunity to 
receive such rebates.
    (g) Tax Treatment.--Rebate amounts provided under this section may 
not be includible in the gross income of the recipient for purposes of 
the Internal Revenue Code of 1986.
    (h) Regulations.--Not later than 24 months after the date of 
enactment of this title, the Secretary shall issue such regulations, or 
guidance, as the Secretary determines necessary or appropriate for the 
effective and efficient administration of the Clean Energy Rebate 
Program.
    (i) Definitions.--In this section:
            (1) Eligible household.--The term ``eligible household'' 
        means a household--
                    (A) for which the gross income of the household 
                does not exceed 200 percent of the poverty line;
                    (B) for which the relevant State agency of the 
                State in which the household is located determines that 
                the household is participating in--
                            (i) the supplemental nutrition assistance 
                        program authorized by the Food and Nutrition 
                        Act of 2008 (7 U.S.C. 2011 et seq.);
                            (ii) the food distribution program on 
                        Indian reservations authorized by section 4(b) 
                        of such Act; or
                            (iii) the program for nutrition assistance 
                        in Puerto Rico or American Samoa under section 
                        19 of such Act;
                    (C) that consists of a single individual or a 
                married couple, and receives benefits under the 
                supplemental security income program under title XVI of 
                the Social Security Act (42 U.S.C. 1381 et seq.); and
                    (D) of which at least one member is a citizen or 
                permanent legal resident.
            (2) Gross income of a household.--The term ``gross income 
        of a household'' means the gross income of a household that is 
        determined in accordance with standards and procedures 
        established under section 5 of the Food and Nutrition Act of 
        2008 (7 U.S.C. 2014).
            (3) Household.--The term ``household'' has the meaning 
        given the term ``Household'' in section 3(m) of the Food and 
        Nutrition Act of 2008 (7 U.S.C. 2012(m)).
            (4) Poverty line.--The term ``poverty line'' has the 
        meaning given such term in section 673(2) of the Community 
        Services Block Grant Act (42 U.S.C. 9902).
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury.
            (6) State.--The term ``State'' means the 50 States, the 
        District of Columbia, the Commonwealth of Puerto Rico, American 
        Samoa, the United States Virgin Islands, Guam, and the 
        Commonwealth of the Northern Mariana Islands.

SEC. 103. WORKER AND COMMUNITY ASSISTANCE FUND.

    (a) Establishment.--There is established in the Treasury of the 
United States a fund, to be known as the Worker and Community 
Assistance Fund, consisting of--
            (1) such amounts as are deposited in the fund under 
        sections 722(g) and 752 of the Clean Air Act; and
            (2) such additional amounts as may be appropriated to 
        supplement the fund.
    (b) Expenditures From Fund.--
            (1) Availability.--Amounts deposited in the fund pursuant 
        to subsection (a) shall be available to the Secretary of Labor 
        and the Director of the Office of Energy and Economic 
        Transition without subsequent appropriation and shall remain 
        available without fiscal year limitation until expended.
            (2) Administrative expenses.--The Secretary of Labor and 
        the Director of the Office of Energy and Economic Transition 
        may use not more than 5 percent of the amount available in the 
        Worker and Community Assistance Fund on October 1 of each 
        fiscal year to cover the administrative expenses of carrying 
        out title II of this Act for that fiscal year.

SEC. 104. CLEANER AIR COMMUNITY FUND.

    (a) Establishment.--There is established in the Treasury of the 
United States a fund, to be known as the Cleaner Air Community Fund, 
consisting of--
            (1) such amounts as are deposited in the fund under 
        sections 722(h) and 752 of the Clean Air Act; and
            (2) such additional sums as may be appropriated to 
        supplement the fund.
    (b) Expenditures From Fund.--
            (1) In general.--Amounts deposited in the fund pursuant to 
        subsection (a) shall be available to the Administrator of the 
        Environmental Protection Agency without subsequent 
        appropriation and shall remain available without fiscal year 
        limitation until expended.
            (2) Administrative expenses.--The Administrator of the 
        Environmental Protection Agency may use not more than 5 percent 
        of the amount available in the Cleaner Air Community Fund on 
        October 1 of each fiscal year to cover the administrative 
        expenses of carrying out part C of title VII of the Clean Air 
        Act for that fiscal year.

SEC. 105. NEGATIVE EMISSIONS ACTIVITIES FUND.

    (a) Establishment.--There is established in the Treasury of the 
United States a fund, to be known as the Negative Emissions Activities 
Fund, consisting of--
            (1) such amounts as are deposited in the fund under 
        sections 722(i) and 752 of the Clean Air Act; and
            (2) such additional amounts as may be appropriated to 
        supplement the fund.
    (b) Expenditures From Fund.--
            (1) In general.--Amounts deposited in the fund pursuant to 
        subsection (a) shall be available to the Administrator of the 
        Environmental Protection Agency without subsequent 
        appropriation and shall remain available without fiscal year 
        limitation until expended.
            (2) Administrative expenses.--The Administrator of the 
        Environmental Protection Agency may use not more than 5 percent 
        of the amount available in the Negative Emissions Activities 
        Fund on October 1 of each fiscal year to cover the 
        administrative expenses of carrying out part D of title VII of 
        the Clean Air Act for that fiscal year.

SEC. 106. ENERGY INNOVATION FUND.

    (a) Establishment.--There is established in the Treasury of the 
United States a fund, to be known as the Energy Innovation Fund, 
consisting of--
            (1) such amounts as are deposited in the fund under section 
        722(j) and 752 of the Clean Air Act; and
            (2) such additional amounts as may be appropriated to 
        supplement the fund.
    (b) Expenditures From Fund.--
            (1) In general.--Beginning in fiscal year 2026, amounts 
        deposited in the fund pursuant to subsection (a) shall be 
        available to the Secretary of Energy without subsequent 
        appropriation and shall remain available without fiscal year 
        limitation until expended to provide assistance pursuant to 
        subsection (c).
            (2) Administrative expenses.--The Secretary of Energy may 
        use not more than 5 percent of the amount available in the 
        Energy Innovation Fund on October 1 of each fiscal year to 
        cover the administrative expenses of carrying out this section 
        for that fiscal year.
    (c) Use of Funds.--The Secretary of Energy shall provide assistance 
under this section, distributed on a competitive basis, to local, 
State, and Tribal governments, institutions of higher education, 
companies, research foundations, trade and industry research 
collaborations, or consortia of such entities, or other appropriate 
research and development entities to support research, development, and 
demonstration of technology that the Secretary determines supports 
achievement of the goals of section 702 of the Clean Air Act, including 
through targeted acceleration of--
            (1) novel early-stage clean energy research;
            (2) development of techniques, processes, and technologies, 
        and related testing and evaluation;
            (3) development of manufacturing processes for clean energy 
        technologies; and
            (4) demonstration for commercial applications of clean 
        energy technologies.
    (d) Supplement Not Supplant.--Assistance provided under this 
section shall be used to supplement, and not to supplant, any other 
Federal resources available to carry out the activities described in 
this section.
    (e) Report to Congress.--Not later than 3 years after the date of 
enactment of this Act, and each year thereafter, the Secretary of 
Energy shall submit to Congress and make available to the public a 
report that describes the activities funded by the Energy Innovation 
Fund.

SEC. 107. EMISSION ALLOWANCE MARKET OVERSIGHT.

    (a) Definition of Emission Allowance.--In this section, the term 
``emission allowance'' means any emission allowance established or 
issued under title VII of the Clean Air Act, or any derivative of such 
allowance.
    (b) Interagency Working Group.--
            (1) Establishment.--Not later than 1 year after the date of 
        enactment of this section, the President shall establish an 
        interagency working group to support the oversight of emission 
        allowance transactions. Such working group shall include 
        representatives from--
                    (A) the Environmental Protection Agency;
                    (B) the Federal Energy Regulatory Commission;
                    (C) the Commodity Futures Trading Commission; and
                    (D) other relevant Federal agencies as determined 
                by the President.
            (2) Recommendations.--The working group shall make periodic 
        recommendations to Congress and relevant Federal agencies to--
                    (A) provide for effective and comprehensive market 
                oversight of emission allowance transactions;
                    (B) prohibit fraud, market manipulation, and excess 
                speculation related to emission allowance transactions;
                    (C) limit unreasonable fluctuation in the prices of 
                emission allowances;
                    (D) ensure market transparency to provide for 
                efficient price discovery, prevention of fraud, market 
                manipulation, and excess speculation; and
                    (E) facilitate compliance with title VII of the 
                Clean Air Act.
            (3) Report.--Not later than 3 years after the date of 
        enactment of this section, and biennially thereafter, the 
        interagency working group shall submit to the President and 
        Congress a written report that includes the recommendations 
        made under paragraph (2) for--
                    (A) regulations and other actions to be taken by 
                Federal agencies to enhance the oversight of emission 
                allowance transactions; and
                    (B) statutory changes needed to ensure the proper 
                operation and oversight of transparent, fair, stable, 
                and efficient emission allowance transactions.

SEC. 108. DIRECT HIRE AUTHORITY FOR IMPLEMENTATION OF THIS TITLE.

    Notwithstanding section 3304 and sections 3309 through 3318 of 
title 5, United States Code, the Administrator of the Environmental 
Protection Agency, upon a determination by the Administrator that there 
is a severe shortage of candidates or a critical hiring need for 
particular positions to carry out this title (including the amendments 
made by this title), may recruit and directly appoint highly qualified 
individuals into the competitive service.

               TITLE II--WORKER AND COMMUNITY ASSISTANCE

SEC. 201. DEFINITIONS.

    In this title:
            (1) Adversely affected community.--The term ``adversely 
        affected community'' means a unit of local government or an 
        Indian Tribe (or a political subdivision thereof) that has 
        been, or is at risk to be, significantly disrupted by the 
        United States transition to net-zero greenhouse gas emissions 
        through the loss of a significant portion of locally generated 
        tax revenue or employment due to the closure, or risk of 
        closure, of an impacted employer within its jurisdiction.
            (2) Adversely affected worker.--The term ``adversely 
        affected worker'' means an individual who has been, or is at 
        risk to be, totally separated or partially separated from 
        employment by an impacted employer.
            (3) Director.--The term ``Director'' means the Director of 
        the Office of Energy and Economic Transition.
            (4) Impacted employer.--The term ``impacted employer'' 
        means a private entity that is primarily engaged in business 
        related to--
                    (A) the extraction of fossil fuels;
                    (B) the refinement of fossil fuels;
                    (C) the generation of electricity from fossil 
                fuels;
                    (D) the production of energy-intensive industrial 
                products;
                    (E) the manufacture of light-, medium-, and heavy-
                duty vehicles that utilize an internal combustion 
                engine and component parts for such vehicles;
                    (F) the construction, operation, and maintenance of 
                infrastructure to deliver fossil fuels for domestic 
                use; or
                    (G) other industries significantly disrupted by the 
                United States transition to net-zero greenhouse gas 
                emissions, as determined by the Director, in 
                consultation with the Administrator of the 
                Environmental Protection Agency and the Secretary of 
                Labor.
            (5) Partial separation.--The terms ``partial separation'' 
        and ``partially separated'' mean, with respect to an individual 
        who has not been totally separated from employment, that--
                    (A) the number of hours of work for such individual 
                has been reduced by an impacted employer to 80 percent 
                or less of the average number of hours per week such 
                individual worked per week prior to any separation from 
                employment; and
                    (B) the wages for such individual have been reduced 
                by an impacted employer to 80 percent or less of the 
                average wages per week while employed by the impacted 
                employer prior to any separation.
            (6) Total separation.--The terms ``total separation'' and 
        ``totally separated'' mean the layoff or severance of an 
        individual from employment by an impacted employer.

SEC. 202. ENERGY AND ECONOMIC TRANSITION IMPACT STUDIES.

    (a) In General.--The Secretary of Energy shall seek to enter into 
an agreement with the National Academy of Sciences under which the 
Academy agrees to conduct studies on matters concerning the potential 
impacts of achieving net-zero greenhouse gas emissions on workers and 
communities dependent on employment related to fossil fuels as follows:
            (1) Not later than 1 year after the date of entry into such 
        agreement, the Academy shall complete a study focused on 
        communities that have experienced an energy-related transition 
        within the previous 10 years, including communities that were 
        dependent on coal, and submit to Congress and the Secretary of 
        Energy a report on the results of such study.
            (2) Not later than 3 years after the date of entry into 
        such agreement, the Academy shall complete a study focused on 
        communities and industries not covered in the study under 
        paragraph (1) that are likely to experience an energy-related 
        transition should the United States achieve net-zero greenhouse 
        gas emissions by 2050, and submit to Congress and the Secretary 
        of Energy a report on the results of such study.
    (b) Timing of Agreement.--The Secretary of Energy shall seek to 
enter into the agreement described in subsection (a) not later than 180 
days after the date of the enactment of this Act.
    (c) Requirements.--The study and report under paragraph (1) of 
subsection (a), with respect to communities described in such 
paragraph, and the study and report under paragraph (2) of subsection 
(a), with respect to communities described in such paragraph, shall--
            (1) assess current and foreseeable trends in worker and 
        community disruptions associated with the United States 
        transition to achieving net-zero greenhouse gas emissions, and 
        the effects of such trends on the social, economic, and other 
        requirements of the United States;
            (2) identify types of occupations related to fossil fuels 
        that may be impacted by the United States transition to 
        achieving net-zero greenhouse gas emissions, including--
                    (A) occupations involved with--
                            (i) the extraction of fossil fuels;
                            (ii) the refinement of fossil fuels;
                            (iii) the generation of electricity from 
                        fossil fuels;
                            (iv) the production of energy-intensive 
                        industrial products;
                            (v) the manufacture of light-, medium-, and 
                        heavy-duty vehicles that utilize an internal 
                        combustion engine and component parts for such 
                        vehicles; and
                            (vi) the construction, operation, and 
                        maintenance of infrastructure to deliver fossil 
                        fuels for domestic use; and
                    (B) for each type of occupation identified under 
                subparagraph (A), estimates of--
                            (i) the number of employees serving in each 
                        type of occupation;
                            (ii) the locations of employees for each 
                        type of occupation;
                            (iii) the average wages and benefits of 
                        employees for each type of occupation; and
                            (iv) the average age of employees for each 
                        type of occupation, including an estimate of 
                        the number of employees 55 years of age or 
                        older;
            (3) assess impacts and potential impacts associated with 
        the United States transition to achieving net-zero greenhouse 
        gas emissions on workers in the types of occupations identified 
        under paragraph (2);
            (4) identify skills, including professional certifications, 
        typically associated with each type of occupation identified 
        under paragraph (2) and potential occupations utilizing the 
        same or similar skills in industries not impacted by the United 
        States transition to achieving net-zero greenhouse gas 
        emissions, including an estimate of average wages and benefits 
        for each such potential occupation;
            (5) identify the ages and locations of, and existing debt 
        burdens, including debt burdens resulting from Department of 
        Agriculture Rural Utilities Service loans, related to existing 
        fossil fuel-powered electricity generating units;
            (6) identify municipal and county governments that derive--
                    (A) more than 25 percent of locally generated tax 
                revenue or employment within the jurisdiction of the 
                government from industries employing workers in types 
                of occupations identified under paragraph (2); and
                    (B) more than 50 percent of locally generated tax 
                revenue or employment within that jurisdiction from 
                such industries;
            (7) assess the status and condition of communities already 
        affected by the transition to achieving net-zero greenhouse gas 
        emissions, that have lost significant locally generated tax 
        revenue or employment within the past 10 years;
            (8) assess economic development and alternative employment 
        opportunities in communities identified in paragraphs (6) and 
        (7), including an assessment of existing educational, workforce 
        development, and infrastructure assets, including 
        transportation, energy, and digital infrastructure, near 
        identified communities;
            (9) identify commonly occurring municipal and county 
        government services and programs funded by locally generated 
        tax revenues in communities identified in paragraphs (6) and 
        (7), including--
                    (A) education;
                    (B) public safety, including police and fire 
                departments;
                    (C) health care;
                    (D) infrastructure; and
                    (E) workforce development; and
            (10) identify potential strategies, consistent with 
        achieving net-zero greenhouse gas emissions, to avoid future 
        disruptions among businesses and workers, including strategies 
        to reskill workers to fill jobs in emerging and growing 
        industries.
    (d) Recommendations.--The studies and reports under subsection (a) 
shall identify actions that could be taken regarding worker and 
community transition to net-zero greenhouse gas emissions, including--
            (1) compensation packages for employees in types of 
        occupations identified under subsection (c)(2), including--
                    (A) transition adjustment assistance, potentially 
                including support for wages, pension, health care, and 
                other benefits; and
                    (B) enabling early retirement for such employees 
                over the age of 55;
            (2) training and further education for employees in 
        occupations identified under subsection (c)(2), potentially 
        including job placement and relocation assistance;
            (3) economic development and diversification of communities 
        identified under paragraphs (6) and (7) of subsection (c), 
        including employment and development opportunities associated 
        with environmental remediation;
            (4) financial assistance packages for communities 
        identified in paragraphs (6) and (7) of subsection (c) to 
        provide temporary replacement of lost locally generated tax 
        revenue; and
            (5) recommendations for remedying deficiencies of existing 
        programs and activities identified in subsection (c), which may 
        include recommendations for Federal legislation and Executive 
        action.
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated such sums as are necessary to carry out this section.

SEC. 203. OFFICE OF ENERGY AND ECONOMIC TRANSITION.

    (a) Establishment.--There is established in the Executive Office of 
the President an Office of Energy and Economic Transition. The Office 
shall be led by a Director who shall be appointed by the President, to 
serve at the pleasure of the President, by and with the advice and 
consent of the Senate.
    (b) Director Qualifications.--The Director shall be a person who, 
as a result of training, experience, and attainments, is exceptionally 
well qualified to--
            (1) appraise programs and activities of the Federal 
        Government in light of the challenges posed to adversely 
        affected workers and adversely affected communities;
            (2) be conscious of and responsive to the scientific, 
        economic, social, cultural, and pollution reduction needs and 
        interests of the United States; and
            (3) formulate and recommend national policies to assist 
        workers and communities disrupted in the United States 
        transition to achieving net-zero greenhouse gas emissions.
    (c) Compensation for Director.--The annual rate of pay for the 
Director shall be fixed by the President at a rate that may not exceed 
the annual rate of pay for level II of the Executive Schedule.
    (d) Duties of Director.--The Director shall assist and advise the 
President on policies and programs of the Federal Government affecting 
the United States transition to achieving net-zero greenhouse gas 
emissions by--
            (1) administering the programs and activities under this 
        title;
            (2) assisting and advising the President in the preparation 
        of the Worker and Community Transition Report required under 
        subsection (g);
            (3) reviewing and appraising the various programs and 
        activities of the Federal Government related to adversely 
        affected workers and economic development and diversification 
        of adversely affected communities, and making recommendations 
        to the President with respect to such programs and activities;
            (4) coordinating relevant programs and activities among the 
        relevant Federal departments and agencies through the 
        Interagency Energy and Economic Transition Task Force convened 
        pursuant to section 204;
            (5) coordinating across Federal departments, agencies, and 
        other initiatives to align energy-related transition strategies 
        with other national economic development strategies, including 
        national manufacturing, infrastructure, and environmental 
        remediation strategies;
            (6) in accordance with section 205, being responsive to and 
        coordinating with the Stakeholder Advisory Committee 
        established under such section;
            (7) creating and maintaining a website to serve as an 
        information clearinghouse containing information on relevant 
        programs and activities from relevant departments and agencies 
        across the Federal Government to increase awareness of Federal 
        programs, grants, loans, loan guarantees, and other assistance 
        and resources the Director determines may assist economic 
        development and diversification activities in adversely 
        affected communities and support adversely affected workers;
            (8) providing assistance to adversely affected communities, 
        including technical and financial assistance, and support for 
        capacity building and planning capabilities by adversely 
        affected communities and community-based leaders of such 
        communities, including assistance provided pursuant to section 
        206 or through Community-Based Transition Hubs pursuant to 
        section 207;
            (9) collecting, collating, analyzing, and interpreting data 
        and information on adversely affected workers and economic 
        development and diversification of adversely affected 
        communities; and
            (10) implementing grant programs or other forms of 
        financial and technical assistance to support adversely 
        affected workers and the economic development and 
        diversification of adversely affected communities as required 
        by this title or after determining no such similar program or 
        assistance is being provided by a Federal agency.
    (e) Employment of Personnel, Experts, and Consultants.--The Office 
may employ such officers and employees as may be necessary to carry out 
its duties under this title. In addition, the Office may employ and fix 
the compensation of such experts and consultants as may be necessary 
for carrying out such duties, in accordance with section 3109 of title 
5, United States Code.
    (f) Reimbursements.--The Office may accept reimbursements from any 
private nonprofit organization, any department, agency, or 
instrumentality of the Federal Government, or any State or local 
government for the reasonable travel expenses incurred by the Director 
or an employee of the Office in connection with attendance at any 
conference, seminar, or similar meeting conducted for the benefit of 
the Office.
    (g) Report to Congress.--Beginning in 2026, the President shall 
transmit to Congress a report, to be known as the Worker and Community 
Transition Report, not less than once every 2 years, which shall set 
forth--
            (1) the status and condition of workers and communities 
        disrupted in the United States transition to achieving net-zero 
        greenhouse gas emissions, with an emphasis on economic 
        development and diversification activities in adversely 
        affected communities;
            (2) current and foreseeable trends in worker and community 
        disruptions associated with the United States transition to 
        achieving net-zero greenhouse gas emissions, and the effects of 
        such trends on the social, economic, and other requirements of 
        the United States;
            (3) a review of the programs and activities (including 
        regulatory activities) of the Federal Government, State, 
        Tribal, and local governments, and nongovernmental entities or 
        individuals that serve adversely affected communities;
            (4) recommendations for remedying deficiencies of existing 
        programs and activities described in paragraph (3), which may 
        include recommendations for new programs and activities and 
        legislation to authorize such programs; and
            (5) the expenditures of the Office in support of programs 
        and activities authorized under this title.
    (h) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as are necessary.

SEC. 204. INTERAGENCY ENERGY AND ECONOMIC TRANSITION TASK FORCE.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Director shall convene regularly a task force, to be 
known as the Interagency Energy and Economic Transition Task Force, to 
enhance the coordination of relevant programs and activities intended 
to support adversely affected workers and adversely affected 
communities, with an emphasis on economic development and 
diversification activities in adversely affected communities.
    (b) Composition.--The Task Force shall be comprised of the 
following (or a designee):
            (1) The Secretary of Energy.
            (2) The Secretary of Labor.
            (3) The Secretary of Commerce.
            (4) The Secretary of Agriculture.
            (5) The Secretary of Health and Human Services.
            (6) The Secretary of Housing and Urban Development.
            (7) The Secretary of the Interior.
            (8) The Secretary of Transportation.
            (9) The Secretary of the Treasury.
            (10) The Secretary of Education.
            (11) The Administrator of the Environmental Protection 
        Agency.
            (12) The Administrator of the Small Business 
        Administration.
            (13) The Director of the Office of Management and Budget.
            (14) The Chair of the Council on Environmental Quality.
            (15) The Chairman of the Appalachian Regional Commission.
            (16) Such other Federal officials as determined appropriate 
        by the Director.
    (c) Functions.--The Task Force shall--
            (1) report to the President through the Director;
            (2) seek to enhance coordination and implementation of 
        programs and activities related to the duties of the Office of 
        Energy and Economic Transition in order to ensure that the 
        administration of programs, activities, and policies across 
        Federal departments and agencies is carried out in a consistent 
        and complementary manner;
            (3) utilize, to the fullest extent possible, the services, 
        facilities, and information (including statistical information) 
        of public and private agencies and organizations, and 
        individuals, in order that duplication of effort and expense 
        may be avoided; and
            (4) identify, based in part on recommendations from the 
        Stakeholder Advisory Committee established under section 205 
        and the public, opportunities to improve support for adversely 
        affected workers and adversely affected communities for 
        relevant Federal departments and agencies to take into 
        consideration and address.
    (d) Public Participation.--The Task Force shall--
            (1) hold public meetings or otherwise solicit public 
        participation for the purposes of developing and coordinating 
        policies and programs of the Federal Government related to 
        adversely affected workers and adversely affected communities 
        in the United States transition to achieving net-zero 
        greenhouse gas emissions; and
            (2) publish a summary of any comments and recommendations 
        provided pursuant to paragraph (1).

SEC. 205. STAKEHOLDER ADVISORY COMMITTEE.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Director shall establish a committee, to be known as 
the Stakeholder Advisory Committee, to consult with representatives of 
adversely affected communities, adversely affected workers, industry, 
labor unions, economic development experts, State, local, and Tribal 
governments, and other organizations and individuals, as determined 
appropriate by the Director, to address the needs of workers and 
communities affected by the United States energy transition to net-zero 
greenhouse gas emissions.
    (b) Membership.--The Stakeholder Advisory Committee shall be 
comprised of members who have knowledge of, or experience relating to, 
workers and communities adversely affected by the United States energy 
transition to net-zero greenhouse gas emissions, with an emphasis on 
economic development and diversification activities in adversely 
affected communities, and shall include--
            (1) representatives from labor unions, including at least 
        one representative from--
                    (A) the mining sector;
                    (B) the electricity generation sector;
                    (C) the manufacturing sector; and
                    (D) the transportation sector;
            (2) community leaders from adversely affected communities, 
        including community leaders from Tribal and Indigenous 
        communities;
            (3) representatives from State, Tribal, and local 
        governments;
            (4) experts in economic development;
            (5) experts in workforce development;
            (6) representatives from nongovernmental organizations, 
        including environmental organizations; and
            (7) representatives from the private sector.
    (c) Responsibilities.--The Stakeholder Advisory Committee shall 
provide independent advice and recommendations to the Director with 
respect to issues relating to the duties of the Office of Energy and 
Economic Transition, including--
            (1) improving participation, cooperation, and communication 
        between the Office and adversely affected communities;
            (2) recommending lessons learned and best practices from 
        communities, regions, and countries that have gone through, are 
        going through, or are planning for an energy-related economic 
        transition;
            (3) supporting community-based public meetings, as 
        described in subsection (f);
            (4) soliciting and receiving feedback from Community-Based 
        Transition Hubs receiving grants pursuant to section 207; and
            (5) producing a report within 2 years of establishment, and 
        every 2 years thereafter, and make recommendations, including 
        actions that could be taken under executive authority and new 
        legislation.
    (d) Recommendations From the Stakeholder Advisory Committee.--The 
Director shall provide a written response to each recommendation 
submitted in a report under subsection (c) to the Director by the 
Stakeholder Advisory Committee by not later than 180 days after the 
date of submission of such report.
    (e) Committee Meetings.--
            (1) In general.--The Stakeholder Advisory Committee shall 
        meet not less frequently than 3 times each calendar year.
            (2) Open to public.--Each meeting of the Stakeholder 
        Advisory Committee shall be held open to the public.
            (3) Duties of the director.--The Director (or a designee) 
        shall--
                    (A) be present at each meeting of the Stakeholder 
                Advisory Committee;
                    (B) ensure that each meeting is conducted in 
                accordance with an agenda approved in advance by the 
                Director;
                    (C) provide an opportunity for interested persons--
                            (i) to file comments before or after each 
                        meeting of the Stakeholder Advisory Committee; 
                        or
                            (ii) to make statements at such a meeting, 
                        to the extent that time permits; and
                    (D) ensure that a high-level representative from 
                each department and agency from the Interagency Energy 
                and Economic Transition Task Force convened pursuant to 
                section 204 is invited to, and encouraged to attend, 
                each meeting of the Stakeholder Advisory Committee.
    (f) Public Meetings.--
            (1) In general.--Not later than 2 years after the date of 
        enactment of this Act, and each year thereafter, the Director, 
        in coordination with the Stakeholder Advisory Committee, shall 
        hold public meetings to gather input with respect to the duties 
        of the Office of Energy and Economic Transition and 
        implementation of this title.
            (2) Outreach to adversely affected communities.--The 
        Director, in advance of the meetings described in subsection 
        (a), shall hold meetings in multiple adversely affected 
        communities to provide meaningful community involvement 
        opportunities.
            (3) Coordination with community-based transition hubs.--The 
        Director, in advance of the meetings described in subsection 
        (a), shall coordinate and solicit comments from entities 
        receiving grants under section 207.
    (g) Travel Expenses.--A member of the Stakeholder Advisory 
Committee may be allowed travel expenses, including per diem in lieu of 
subsistence, at such rate as the Director determines to be appropriate 
while away from the home or regular place of business of the member in 
the performance of the duties of the Stakeholder Advisory Committee, 
including participation in a public meeting pursuant to subsection (f).
    (h) Duration.--The Stakeholder Advisory Committee shall remain in 
existence unless otherwise provided by law.

SEC. 206. ASSISTANCE FOR ADVERSELY AFFECTED COMMUNITIES.

    (a) In General.--The Director shall establish a program to provide 
assistance to eligible local government entities, including making 
payments to temporarily replace eligible local revenues of such 
entities, using amounts made available to the Director in the Worker 
and Community Assistance Fund.
    (b) Requirements.--In implementing the program in subsection (a), 
the Director shall--
            (1) identify problems of counties, regions, metropolitan 
        areas, Tribal Governments, and communities that result from the 
        cessation of operations by impacted employers;
            (2) use and maintain a uniform socioeconomic impact 
        analysis;
            (3) apply consistent policies, practices, and procedures in 
        the administration of Federal programs that are used to assist 
        counties, Tribal Governments, regions, metropolitan areas, 
        communities, and businesses;
            (4) encourage effective Federal, State, Tribal, county, 
        regional, metropolitan, and community cooperation and 
        involvement of public interest groups, labor organizations, and 
        private sector organizations in community adjustment 
        activities;
            (5) serve as a clearinghouse to exchange information among 
        Federal, State, Tribal, county, regional, metropolitan, and 
        community officials involved in community adjustment 
        activities. Such information may include reports, studies, best 
        practices, technical information, and sources of public and 
        private financing; and
            (6) support planning activities of counties, Tribal 
        Governments, regions, metropolitan areas, and communities to 
        promote diversification of local economies.
    (c) Community Adjustments to Eligible Local Government Entities.--
The Director shall make annual payments under this section to eligible 
local government entities to replace eligible local revenues due to the 
cessation of operations by impacted employers located within the 
jurisdiction of such local government entities.
    (d) Order of Payment.--The date of submission of an eligible local 
government entity's application for assistance shall establish the 
order in which assistance is paid to program applicants, except that in 
no event shall assistance be paid to a local government entity until 
such time that an impacted employer has been closed. Any local 
government entity seeking assistance under this section shall submit an 
affidavit to the Director that an impacted employer has ceased 
operating and an estimation of eligible local revenues. After receipt 
of such an affidavit under this subsection, the Director shall confirm 
such information.
    (e) Conditions on Payments and Assistance.--An eligible local 
government entity shall--
            (1) be eligible for not more than one payment each fiscal 
        year under this section; and
            (2) not receive payments under this section for more than 8 
        fiscal years.
    (f) Determination of Payment Amount.--The amount of a payment under 
this section shall be determined by the Director based on the eligible 
local revenues from one or more impacted employers to an eligible local 
government entity equal to--
            (1) 90 percent of eligible local revenues in the first and 
        second years;
            (2) 75 percent of eligible local revenues in the third and 
        fourth years;
            (3) 50 percent of eligible local revenues in the fifth and 
        sixth years; and
            (4) 25 percent of eligible local revenues in the seventh 
        and eighth years.
    (g) Adjustment of Payment Amounts.--Notwithstanding subsection (f), 
if the Director determines that the total amount of payments to 
eligible local government entities in any year would exceed the amount 
of funding made available to carry out this section for that year, the 
Director may reduce each eligible local government entity's payment on 
a pro rata basis.
    (h) Report to the Director.--An eligible local government entity 
receiving payment under this section shall be required to submit an 
annual report to the Director explaining the use of payments, including 
a description of funding used for--
            (1) infrastructure;
            (2) telecommunications;
            (3) education;
            (4) health care;
            (5) public safety, including police, fire, emergency 
        response, or other community support services;
            (6) drinking water and wastewater services;
            (7) economic development and diversification;
            (8) employment training, counseling, and placement services 
        for dislocated workers; and
            (9) counseling and other social services for dislocated 
        workers.
    (i) Community Adjustments, Economic Development, and Economic 
Diversification Planning.--The Director may make grants and supplement 
other Federal funds in order to assist a county, municipality, school 
district, special district, or Tribal Government in planning for 
community adjustments, economic development, and economic 
diversification even if such entity is not currently eligible for 
assistance under this section if the Director determines that there 
exists a reasonable likelihood that such entity may become eligible in 
the future.
    (j) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary for carrying out this section.
    (k) Definitions.--In this section:
            (1) Eligible local government entity.--The term ``eligible 
        local government entity'' means a county, municipality, school 
        district, special district, or Tribal Government that has one 
        or more impacted employers located within the jurisdiction of 
        such entity that have ceased operations within the 2 years 
        prior to submitting an application to the Director, resulting 
        in at least a 25 percent reduction in total revenues from the 
        real property tax collections, royalties, lease payments, 
        transaction privilege taxes and sales taxes, or payments in 
        lieu of taxes owed to such entity.
            (2) Eligible local revenues.--The term ``eligible local 
        revenues'' means the amount of real property taxes, royalty or 
        lease payments, transaction privilege taxes and sales taxes, 
        and payments in lieu of taxes owed by one or more impacted 
        employers to a county, municipality, school district, special 
        district, or Tribal Government, based on the average annual 
        amount owed by such an impacted employer for the 3 years prior 
        to the cessation of operations by such impacted employer.

SEC. 207. COMMUNITY-BASED TRANSITION HUB PROGRAM.

    (a) In General.--The Director shall establish a program to award 
grants to entities described in subsection (b), to be known as 
Community-Based Transition Hubs, to carry out the activities described 
in subsection (d), using amounts made available to the Director in the 
Worker and Community Assistance Fund.
    (b) Eligibility.--To be eligible to receive a grant under 
subsection (a), an entity shall demonstrate to the Director that the 
entity--
            (1) has existing relationships, or could readily establish 
        relationships, with local employers and employees, county, 
        municipal, and Tribal governments, local and regional economic 
        development and planning organizations, workforce development, 
        educational, and job training resources, economic development 
        organizations, community organizations that provide social 
        services, and other organizations determined appropriate by the 
        Director;
            (2) is capable of carrying out the duties described in 
        subsection (d);
            (3) can meet the standards described in subsection (e); and
            (4) can provide information consistent with the standards 
        developed under subsection (f).
    (c) Priorities.--In awarding grants under this section, the 
Director shall prioritize grants to entities located in communities 
that--
            (1) receive assistance under section 206; or
            (2) the Director determines there is a reasonable 
        likelihood may receive assistance under section 206 within 5 
        years.
    (d) Duties.--An entity that receives a grant under this section 
shall--
            (1) coordinate with the Office of Energy and Economic 
        Transition and relevant Federal departments and agencies 
        regarding the latest information, financial and technical 
        assistance opportunities, and best practices to support workers 
        and communities adversely affected by the United States energy 
        transition to net-zero greenhouse gas emissions;
            (2) provide capacity-building support and technical 
        assistance, including grant writing assistance, to local 
        leaders and organizations, including elected officials, 
        community leaders, business owners, and labor leaders, to 
        facilitate community-driven planning processes and on-going 
        program development and implementation related to assistance to 
        displaced workers and economic development and diversification;
            (3) advise communities that apply for assistance under this 
        title or under other Federal and State programs, including 
        providing guidance on the procedures and deadlines for applying 
        or petitioning for such assistance;
            (4) conduct public education activities, including outreach 
        to adversely affected workers with respect to services and 
        assistance available through local, State, and Federal 
        programs;
            (5) provide information related to, and when appropriate, 
        facilitate enrollment in--
                    (A) training, employment counseling, employment 
                opportunities, and placement services for adversely 
                affected workers, available in local and regional 
                areas, including information on how to apply for such 
                training and services;
                    (B) training programs and other services provided 
                by a State pursuant to title I of the Workforce 
                Investment Act of 1998 (29 U.S.C. 2801 et seq.) and 
                available in local and regional areas, including 
                information on how to apply for such training;
                    (C) educational opportunities and information 
                related financial aid, including referring workers to 
                educational opportunity centers described in section 
                402F of the Higher Education Act of 1965 (20 U.S.C. 
                1070a-16), where applicable;
                    (D) short-term prevocational services, including 
                development of learning skills, communications skills, 
                interviewing skills, personal maintenance skills, and 
                professional conduct to prepare individuals for 
                employment or training; and
                    (E) support services in local and regional areas, 
                including services related to childcare, personal 
                counseling (including substance abuse treatment, 
                suicide prevention, and mental health care), family 
                counseling, bankruptcy and financial counseling, 
                transportation, dependent care, housing assistance, and 
                need-related payments;
            (6) provide individual employment counseling for adversely 
        affected workers, including development of an individual 
        employment plan to identify employment goals and objectives, 
        and appropriate training to achieve those goals and objectives, 
        or information to obtain such counseling in local and regional 
        areas;
            (7) provide employment statistics information, including 
        the provision of accurate information relating to local, 
        regional, and national labor market areas, including--
                    (A) job vacancy listings in such labor market 
                areas;
                    (B) information on jobs skills necessary to obtain 
                jobs identified in job vacancy listings described in 
                subparagraph (A);
                    (C) information relating to local occupations that 
                are in demand and earnings potential of such 
                occupations; and
                    (D) skills requirements for local occupations 
                described in subparagraph (C); and
            (8) provide information in a manner that is culturally and 
        linguistically appropriate to the needs of the population being 
        served.
    (e) Standards.--The Director shall establish standards for grant 
recipients under this section, including provisions to ensure that any 
entity that receives a grant is qualified to engage in the activities 
described in this section.
    (f) Fair and Impartial Information and Services.--The Director, in 
consultation with States, Tribal Governments, and relevant Federal 
agencies, shall develop standards to ensure that information made 
available by grant recipients under this section is accurate and shall 
provide such entities with relevant information and technical 
assistance to enable grant recipients under this section to better 
perform the duties in subsection (d).
    (g) Limitations on Grants.--
            (1) Period.--In carrying out this section, the Director 
        shall ensure that the total period of a grant does not exceed 6 
        years.
            (2) Amount.--In carrying out this section, the Director 
        shall ensure that the total amount awarded to an entity during 
        the total period of the grant does not exceed $12,000,000.
    (h) Authorization of Appropriations.--There is authorized to be 
appropriated such sums as are necessary for carrying out this section.

SEC. 208. ASSISTANCE FOR ADVERSELY AFFECTED WORKERS.

    (a) In General.--Using amounts made available to the Secretary of 
Labor in the Worker and Community Assistance Fund, the Secretary of 
Labor shall provide assistance to each eligible adversely affected 
worker in accordance with this section.
    (b) Petitions.--
            (1) Filing.--
                    (A) In general.--To be eligible to receive 
                assistance under this section, a petition shall be 
                filed with the Secretary and the Governor of the 
                applicable State, simultaneously, by (or on behalf of) 
                an adversely affected worker or a group of adversely 
                affected workers that meets the requirements of 
                subsection (c).
                    (B) Authorized entities.--A petition under 
                subparagraph (A) may be filed on behalf of an 
                individual adversely affected worker or a group of 
                adversely affected workers by one of the following:
                            (i) The certified or recognized union or 
                        other duly authorized representative of such 
                        worker or workers.
                            (ii) An employer of such worker or workers.
                            (iii) A one-stop operator or one-stop 
                        partners (as defined in section 3 of the 
                        Workforce Innovation and Opportunity Act) 
                        including State employment security agencies.
                            (iv) A State, or an entity designated by a 
                        State, carrying out rapid response activities 
                        pursuant to title I of the Workforce Innovation 
                        and Opportunity Act (29 U.S.C. 3111 et seq.).
                    (C) Applicable governor.--For purposes of 
                subparagraph (A), the term ``applicable State'' 
                applicable State, when used with respect to an 
                adversely affected worker or a group of such workers, 
                means the State in which the employment site of such 
                worker or workers is located.
            (2) Action by the secretary of labor.--Upon receipt of a 
        petition filed under paragraph (1), the Secretary of Labor 
        shall promptly publish notice in the Federal Register and on 
        the website of the Department of Labor that the Secretary has 
        received, and is reviewing, the petition.
            (3) Action by governors.--Upon receipt of a petition filed 
        under paragraph (1), the Governor shall--
                    (A) ensure that rapid response activities and 
                appropriate career services (as described in section 
                134 of the Workforce Innovation and Opportunity Act) 
                authorized under other Federal laws are made available 
                to each adversely affected worker covered by the 
                petition to the extent authorized under such laws; and
                    (B) assist the Secretary of Labor in the review of 
                the petition by verifying the information provided 
                under the petition and providing such other assistance 
                as the Secretary of Labor may request.
    (c) Eligibility.--An adversely affected worker who works or has 
worked at an employment site of an impacted employer or a group of 
adversely affected workers from the same employment site of an impacted 
employer shall be certified by the Secretary of Labor as eligible to 
receive assistance under this section if the Secretary determines that 
the petition filed under subsection (b) by or on behalf of such 
individual or group demonstrates that--
            (1) such individual worker or each individual worker in 
        such group is an adversely affected worker who has been (or who 
        has been at risk to be) totally separated or partially 
        separated from employment with such impacted employer for not 
        longer than the 1-year period ending on the date on which such 
        petition is filed;
            (2) a significant number or percentage of the workers at 
        such employment site are adversely affected workers; and
            (3) the sales, production, or delivery of goods or services 
        at such employment site has decreased as a result of any 
        requirement of title VII of the Clean Air Act, as added by this 
        Act, which may be demonstrated by evidence--
                    (A) in the case of a facility of such employer that 
                mines, produces, processes, or utilizes fossil fuels to 
                generate electricity, that the shift from reliance upon 
                fossil fuels to other sources of energy has resulted in 
                the closing of such facility or in the partial 
                separation or total separation of a significant number 
                or percentage of workers at such employment site;
                    (B) in the case of a manufacturing facility, of a 
                substantial increase in the cost of energy and other 
                inputs required for such facility to produce items 
                whose prices are competitive in the marketplace, and 
                such cost increase is not significantly offset by 
                emission allowance allocation to the facility pursuant 
                to title VII of the Clean Air Act, as added by this 
                Act; or
                    (C) of other documented occurrences of such 
                decreases at such employment site that the Secretary of 
                Labor determines are indicators of an adverse impact on 
                the industry in which such employer is primarily 
                engaged as a result of any requirement of title VII of 
                the Clean Air Act, as added by this Act.
    (d) Determination by the Secretary of Labor.--As soon as possible 
after the date on which a petition is filed under subsection (b) and 
not later than 60 days after that date, the Secretary of Labor, in 
consultation with the Administrator of the Environmental Protection 
Agency, as necessary, shall--
            (1) determine whether the worker or group of workers who 
        filed the petition or on whose behalf such a petition was filed 
        meets the requirements of subsection (c);
            (2) upon reaching a determination with respect to a 
        petition, promptly publish a summary of the determination in 
        the Federal Register and on the website of the Department of 
        Labor, which shall include the first date of the total 
        separation or partial separation (or the risk of total 
        separation or partial separation) from employment with an 
        impacted employer of each worker covered by the petition; and
            (3) if the Secretary determines that such petition meets 
        the requirements of subsection (c)--
                    (A) publish a certification that such worker or 
                workers are eligible for the assistance described in 
                subsections (e) and (f); and
                    (B) notify the representatives of the industry in 
                which the worker or workers were employed, the employer 
                or previous employer of such worker or workers, and any 
                entity that filed the petition on behalf of the worker 
                or workers, of--
                            (i) the assistance described in subsections 
                        (e) and (f); and
                            (ii) an explanation of how to apply for 
                        such assistance.
    (e) Wage Adjustment Assistance.--
            (1) Agreements with states.--An adversely affected worker 
        covered by a certification under subsection (d) may be eligible 
        to receive the wage adjustment assistance described in this 
        subsection--
                    (A) if the worker is or was employed in a State 
                with an agreement described in paragraph (2), by 
                submitting to such State an application for such 
                assistance; or
                    (B) if the worker is or was employed in a State 
                with no such agreement, by complying with the 
                regulations issued by the Secretary pursuant to 
                paragraph (4).
            (2) State agreement.--The Secretary of Labor may enter into 
        an agreement with a State or State agency, which shall provide 
        for each of the following:
                    (A) Applications.--The State or State agency shall 
                receive applications from adversely affected workers 
                pursuant to paragraph (1)(A).
                    (B) Terms and conditions.--The terms and conditions 
                for amending, suspending, or terminating such 
                agreement.
                    (C) Relationship to unemployment insurance.--An 
                adversely affected worker receiving wage adjustment 
                assistance under this subsection shall not be eligible 
                for unemployment insurance otherwise payable to such 
                worker under the laws of the State.
                    (D) Responsibilities of cooperating agencies.--The 
                State or State agency shall perform outreach to 
                adversely affected workers in the State covered by a 
                certification under subsection (d) with respect to the 
                assistance available to such workers under this 
                subsection.
                    (E) State funds.--The Secretary shall provide funds 
                to the State or State agency to provide the assistance 
                described in this subsection, and in addition to such 
                funds, the State shall receive a payment from the 
                Secretary in an amount that is equal to 15 percent of 
                the amount of such funds for administrative expenses, 
                including--
                            (i) reviewing petitions under subsection 
                        (b)(3);
                            (ii) collecting, validating, and reporting 
                        data required under this section;
                            (iii) providing information and employment 
                        services; and
                            (iv) administering wage adjustments under 
                        this subsection.
            (3) Wage adjustment assistance.--
                    (A) Eligibility.--Payment of a wage adjustment 
                assistance shall be made to an adversely affected 
                worker covered by a certification published by the 
                Secretary of Labor pursuant to subsection (d) who files 
                an application with a State or State agency under 
                paragraph (1) for such assistance for any month of 
                total separation or partial separation from employment 
                with an impacted employer, if the following conditions 
                are met:
                            (i) The first month of such total 
                        separation or partial separation occurred 
                        during the period beginning on the date that is 
                        1 year before, and ending on the date that is 2 
                        years after, the date of such certification.
                            (ii) Such worker had, in the 52-week period 
                        ending with the week in which such total 
                        separation or partial separation first 
                        occurred, at least 26 weeks of full-time 
                        employment or 1,040 hours of part-time 
                        employment with an impacted employer, or, if 
                        data with respect to weeks of employment are 
                        not available, equivalent amounts of employment 
                        computed under regulations prescribed by the 
                        Secretary of Labor. For the purposes of this 
                        clause, a week shall be treated as a week of 
                        employment in which such worker--
                                    (I) is on employer-authorized leave 
                                for purposes of vacation, sickness, 
                                injury, parental or family leave, or 
                                inactive duty or active duty military 
                                service for training;
                                    (II) does not work because of a 
                                disability that is compensable under a 
                                workmen's compensation law or plan of a 
                                State or the United States;
                                    (III) had employment interrupted in 
                                order to serve as a full-time 
                                representative of a labor organization 
                                in such firm; or
                                    (IV) performs service in the 
                                uniformed services as such term is 
                                defined in section 4303 of title 38, 
                                United States Code.
                    (B) Ineligibility for certain other benefits.--An 
                adversely affected worker receiving a payment under 
                this subsection shall be ineligible to receive any 
                other form of unemployment insurance for the period in 
                which such worker is receiving a wage adjustment 
                assistance under this section.
                    (C) Payments.--
                            (i) Amounts.--Payments under this 
                        subsection shall be provided to an individual 
                        in an amount which, for each month during an 
                        applicable period, is equal to--
                                    (I) the average amount of monthly 
                                remuneration for employment paid to 
                                such individual during the 12-month 
                                period prior to the first month of 
                                total separation or partial separation 
                                identified in subparagraph (A)(i); 
                                minus
                                    (II) an amount equal to the sum 
                                of--
                                            (aa) any wages received by 
                                        such individual with respect to 
                                        employment during such month; 
                                        plus
                                            (bb) any payments made to 
                                        such individual pursuant to a 
                                        Federal benefit program during 
                                        such month.
                            (ii) Notification.--During the applicable 
                        period, an eligible individual shall notify the 
                        Secretary of Labor or cooperating State agency, 
                        if applicable, with respect to any wages, 
                        payments, or compensation described in clause 
                        (i)(II)(aa).
                            (iii) Applicable period.--For purposes of 
                        this subsection, the term ``applicable period'' 
                        means, with respect to an individual receiving 
                        assistance under this subsection, the 36-month 
                        period subsequent to the first month of total 
                        separation or partial separation identified in 
                        subparagraph (A)(i).
                            (iv) Frequency.--Any payment to an eligible 
                        individual under this subsection shall be 
                        provided on a basis which is not less frequent 
                        than once per month during the applicable 
                        period.
                            (v) Adjustment for inflation.--In the case 
                        of a calendar year beginning after the date 
                        that the employment of an eligible individual 
                        is terminated, the dollar amount of the payment 
                        determined under subsection (a) shall be 
                        increased by an amount equal to--
                                    (I) such dollar amount, multiplied 
                                by
                                    (II) the cost-of-living adjustment 
                                determined under section 1(f)(3) of the 
                                Internal Revenue Code of 1986 for such 
                                calendar year, determined by 
                                substituting ``calendar year 2023'' for 
                                ``calendar year 2016'' in subparagraph 
                                (A)(ii) thereof.
                            (vi) Tax treatment.--For purposes of the 
                        Internal Revenue Code of 1986, the amount of 
                        any payment provided to a qualified individual 
                        under this subsection shall be included in 
                        gross income and treated as wages (as defined 
                        in section 3121(a) of such Code).
            (4) Administration absent state agreement.--For any State 
        where there is no agreement in force between a State or its 
        agency under paragraph (1), the Secretary of Labor shall 
        promulgate regulations for the performance of all necessary 
        functions under this subsection.
    (f) Other Assistance.--
            (1) Health insurance continuation.--Not later than 1 year 
        after the date of enactment of this section, the Secretary of 
        Labor shall prescribe regulations to provide, for a period of 
        no longer than 36 months, 80 percent of the monthly premium of 
        any health insurance coverage that an adversely affected worker 
        who is covered by a certification published pursuant to 
        subsection (d) was receiving through such worker's employer 
        prior to the separation from employment, to be paid to any 
        health care insurance plan designated by the adversely affected 
        worker receiving assistance under this section.
            (2) Educational benefits.--The Secretary of Labor, in 
        consultation with the Secretary of Labor of Education, shall 
        carry out a program of educational assistance for any eligible 
        adversely affected worker who is covered by a certification 
        published pursuant to subsection (d) and child of such worker 
        that is comparable to the program of education assistance 
        administered by the Secretary of Labor of Veterans Affairs 
        under chapter 33 of title 38, United States Code, except that 
        an eligible worker, and each child of such worker, may receive 
        the educational assistance provided under the program.
            (3) Employment services and training.--The Secretary of 
        Labor shall provide, directly or through agreements with the 
        States similar to agreements described in subsection (e), to 
        adversely affected workers covered by a certification under 
        this section information related to, and, when appropriate, 
        facilitate enrollment in--
                    (A) training, employment counseling, employment 
                opportunities, and placement services for adversely 
                affected workers, available in local and regional 
                areas, including information on how to apply for such 
                training and services;
                    (B) training programs and other services provided 
                by a State pursuant to title I of the Workforce 
                Innovation and Opportunity Act (29 U.S.C. 3111 et seq.) 
                and available in local and regional areas, including 
                information on how to apply for such training;
                    (C) educational opportunities and information 
                related financial aid, including referring workers to 
                educational opportunity centers described in section 
                402F of the Higher Education Act of 1965 (20 U.S.C. 
                1070a-16);
                    (D) short-term prevocational services, including 
                development of learning skills, communications skills, 
                interviewing skills, personal maintenance skills, and 
                professional conduct to prepare individuals for 
                employment or training; and
                    (E) support services in local and regional areas, 
                including services related to childcare, personal 
                counseling (including substance abuse treatment, 
                suicide prevention, and mental health care), family 
                counseling, bankruptcy and financial counseling, 
                transportation, dependent care, housing assistance, and 
                need-related payments.
    (g) Fraud and Recovery of Overpayments.--
            (1) Recovery of payments to which an individual was not 
        entitled.--If the Secretary of Labor or a court of competent 
        jurisdiction determines that any person has received any 
        payment under this section to which the individual was not 
        entitled, such individual shall be liable to repay such amount 
        to the Secretary of Labor or to the State that made such 
        payment pursuant to an agreement under subsection (e), except 
        that the Secretary of Labor or such State may waive such 
        repayment if the Secretary or the State determines that--
                    (A) the payment was made without fault on the part 
                of such individual; and
                    (B) requiring such repayment would cause a 
                financial hardship for the individual (or the 
                individual's household, if applicable) when taking into 
                consideration the income and resources reasonably 
                available to the individual (or household) and other 
                ordinary living expenses of the individual (or 
                household).
            (2) Means of recovery.--Unless an overpayment is otherwise 
        recovered, or waived under paragraph (1), the Secretary of 
        Labor shall recover the overpayment by deductions from any sums 
        payable to such person under this section, under any Federal 
        unemployment compensation law, or other Federal law 
        administered by the Secretary of Labor which provides for the 
        payment of assistance with respect to unemployment. Any amount 
        recovered under this section shall be returned to the Treasury 
        of the United States.
                                 <all>
```