I 

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. 

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

5 ‘‘Climate Pollution Standard and Community Investment 

6 Act of 2024’’. 

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

8 this Act is as follows: 


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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. 

1 TITLE I—NATIONAL CLIMATE 

2 RESPONSE 

3 SEC. 101. CLIMATE POLLUTION REDUCTION CERTAINTY. 

4 (a) IN GENERAL.—The Clean Air Act (42 U.S.C. 

5 7401 et seq.) is amended by adding after title VI the fol6 lowing new title: 

7 ‘‘TITLE VII—CLIMATE POLLU8 TION REDUCTION PROGRAM 

9 ‘‘PART A—GENERAL 

10 ‘‘SEC. 701. DEFINITIONS. 

11 ‘‘In this title: 

12 ‘‘(1) ATTRIBUTABLE GREENHOUSE GAS EMIS13 SIONS.—The term ‘attributable greenhouse gas emis14 sions’, for a given calendar year, means— 


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1 ‘‘(A) for a covered entity that is a fuel pro2 ducer or importer described in paragraph 

3 (4)(B), greenhouse gas emissions that would be 

4 emitted from the combustion of any petroleum5 based or coal-based liquid fuel, petroleum coke, 

6 or natural gas liquid, produced or imported by 

7 that covered entity during that calendar year 

8 for sale or distribution in interstate commerce; 

9 ‘‘(B) for a covered entity that is a bulk 

10 producer or importer described in paragraph 

11 (4)(C), the tons of carbon dioxide equivalent of 

12 any gas described in clauses (i) through (v) of 

13 paragraph (4)(C)— 

14 ‘‘(i) produced or imported by such 

15 covered entity during that calendar year 

16 for sale or distribution in interstate com17 merce; or 

18 ‘‘(ii) released as fugitive emissions in 

19 the production of fluorinated gas; and 

20 ‘‘(C) for a natural gas local distribution 

21 company described in paragraph (4)(J), green22 house gas emissions that would be emitted from 

23 the combustion of the natural gas, and any 

24 other gas meeting the specifications for com25 mingling with natural gas for purposes of delivVerDate Sep 11 2014 01:45 Aug 24, 2024 Jkt 049200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H9230.IH H9230

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1 ery, as determined by the Administrator, that 

2 such entity delivered during that calendar year 

3 to customers that are not covered entities. 

4 ‘‘(2) CARBON DIOXIDE EQUIVALENT.—The 

5 term ‘carbon dioxide equivalent’ means the unit of 

6 measure, expressed in tons, of a greenhouse gas as 

7 provided under section 713. 

8 ‘‘(3) COMPLIANCE PERIOD.— 

9 ‘‘(A) The term ‘compliance period’, with 

10 respect to compliance periods 2 through 10 and 

11 subsequent compliance periods, means the pe12 riod of 3 consecutive calendar years following 

13 the preceding compliance period. 

14 ‘‘(B) The term ‘compliance period 1’ 

15 means calendar years 2026, 2027, and 2028. 

16 ‘‘(4) COVERED ENTITY.—The term ‘covered en17 tity’ means each of the following: 

18 ‘‘(A) Any electricity source with a name19 plate capacity of at least 25 megawatts. 

20 ‘‘(B) Any stationary source that produces, 

21 and any entity that imports, for sale or dis22 tribution in interstate commerce in 2024 or any 

23 subsequent year, petroleum-based or coal-based 

24 liquid fuel, petroleum coke, or natural gas liq25 uid, which, in the aggregate, if combusted 


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1 would emit 25,000 or more tons of carbon diox2 ide equivalent, as determined by the Adminis3 trator. 

4 ‘‘(C) Any stationary source that produces, 

5 and any entity that imports, for sale or dis6 tribution in interstate commerce, in bulk, or in 

7 products designated by the Administrator, in 

8 2024 or any subsequent year, 25,000 or more 

9 tons of carbon dioxide equivalent of— 

10 ‘‘(i) fossil fuel-based carbon dioxide; 

11 ‘‘(ii) nitrous oxide; 

12 ‘‘(iii) perfluorocarbons; 

13 ‘‘(iv) sulfur hexafluoride; 

14 ‘‘(v) any other fluorinated gas, except 

15 for nitrogen trifluoride, that is a green16 house gas, as designated by the Adminis17 trator under section 712; or 

18 ‘‘(vi) any combination of greenhouse 

19 gases described in clauses (i) through (v). 

20 ‘‘(D) Any stationary source that emits 

21 25,000 or more tons of carbon dioxide equiva22 lent of nitrogen trifluoride in 2024 or any sub23 sequent year. 

24 ‘‘(E) Any geologic sequestration site. 


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1 ‘‘(F) Any stationary source in any of the 

2 following industrial sectors: 

3 ‘‘(i) Adipic acid production. 

4 ‘‘(ii) Aluminum production. 

5 ‘‘(iii) Ammonia manufacturing. 

6 ‘‘(iv) Cement production. 

7 ‘‘(v) Hydrochlorofluorocarbon produc8 tion. 

9 ‘‘(vi) Lime manufacturing. 

10 ‘‘(vii) Nitric acid production. 

11 ‘‘(viii) Petroleum refining. 

12 ‘‘(ix) Phosphoric acid production. 

13 ‘‘(x) Silicon carbide production. 

14 ‘‘(xi) Soda ash production. 

15 ‘‘(xii) Titanium dioxide production. 

16 ‘‘(xiii) Coal-based liquid or gaseous 

17 fuel production. 

18 ‘‘(G) Any stationary source in the chemical 

19 or petrochemical sector that, in 2024 or any 

20 subsequent year— 

21 ‘‘(i) produces acrylonitrile, carbon 

22 black, ethylene, ethylene dichloride, ethyl23 ene oxide, or methanol; or 

24 ‘‘(ii) emits 25,000 or more tons of 

25 carbon dioxide equivalent from the producVerDate Sep 11 2014 01:45 Aug 24, 2024 Jkt 049200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H9230.IH H9230

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1 tion of any number of chemical or petro2 chemical products. 

3 ‘‘(H) Any stationary source that— 

4 ‘‘(i) emits 25,000 or more tons of car5 bon dioxide equivalent in 2024 or any sub6 sequent year; and 

7 ‘‘(ii) is in one of the following indus8 trial sectors: ethanol production, ferroalloy 

9 production, fluorinated gas production, 

10 food processing, glass production, hydrogen 

11 production, iron and steel production, lead 

12 production, magnesium production, pulp 

13 and paper manufacturing, landfill oper14 ations, wastewater treatment operations, 

15 and zinc production. 

16 ‘‘(I) Any fossil fuel-fired combustion device 

17 (such as a boiler) or grouping of such devices 

18 that— 

19 ‘‘(i) is all or part of an industrial 

20 source not specified in subparagraph (D), 

21 (F), (G), or (H); and 

22 ‘‘(ii) emits 25,000 or more tons of 

23 carbon dioxide equivalent in 2024 or any 

24 subsequent year. 


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1 ‘‘(J) Any natural gas local distribution 

2 company that in 2024 or any subsequent year 

3 delivers to customers that are not covered enti4 ties 460,000,000 cubic feet or more of the total 

5 of— 

6 ‘‘(i) natural gas; and 

7 ‘‘(ii) any other gas meeting the speci8 fications for commingling with natural gas 

9 for purposes of delivery, as determined by 

10 the Administrator. 

11 ‘‘(5) CRITERIA AIR POLLUTANT.—The term 

12 ‘criteria air pollutant’ means an air pollutant subject 

13 to national ambient air quality standards under sec14 tion 109. 

15 ‘‘(6) DESIGNATED REPRESENTATIVE.—The 

16 term ‘designated representative’ means, with respect 

17 to an entity described in subparagraph (A), (B), or 

18 (C), an individual authorized, through a certificate 

19 of representation submitted to the Administrator by 

20 the owners and operators or similar entity official, to 

21 represent the owners and operators or similar entity 

22 official in all matters pertaining to this title (includ23 ing the holding, transfer, or disposition of emission 

24 allowances), and to make all submissions to the AdVerDate Sep 11 2014 01:45 Aug 24, 2024 Jkt 049200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H9230.IH H9230

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1 ministrator under this title. Entities covered under 

2 this paragraph are— 

3 ‘‘(A) covered entities; 

4 ‘‘(B) reporting entities (as defined in sec5 tion 714); and 

6 ‘‘(C) any other entities receiving or holding 

7 emission allowances under this title. 

8 ‘‘(7) ELECTRICITY SOURCE.—The term ‘elec9 tricity source’ means a stationary source that in10 cludes one or more combustion devices that, on Jan11 uary 1, 2024, or any date thereafter, are fossil fuel12 fired and serve a generator that produces electricity 

13 for sale. 

14 ‘‘(8) EMISSION ALLOWANCE.— 

15 ‘‘(A) IN GENERAL.—Except as provided in 

16 subparagraph (B), the term ‘emission allow17 ance’ means a limited authorization to emit, or 

18 have attributable greenhouse gas emissions in 

19 an amount of, 1 ton of carbon dioxide equiva20 lent of a greenhouse gas in accordance with this 

21 title. 

22 ‘‘(B) OVERBURDENED COMMUNITIES.— 

23 With respect to a covered entity that is a sta24 tionary source, including electricity sources and 

25 industrial sources, operating in a location desVerDate Sep 11 2014 01:45 Aug 24, 2024 Jkt 049200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H9230.IH H9230

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1 ignated as a Cleaner Air Community under sec2 tion 733 of part C of this title, the term ‘emis3 sion allowance’ means a limited authorization to 

4 emit 0.5 tons of carbon dioxide equivalent of a 

5 greenhouse gas in accordance with this title. 

6 ‘‘(9) FOSSIL FUEL.—The term ‘fossil fuel’ 

7 means natural gas, petroleum, or coal, or any form 

8 of solid, liquid, or gaseous fuel derived therefrom. 

9 ‘‘(10) FOSSIL FUEL-FIRED.—The term ‘fossil 

10 fuel-fired’ means powered by combustion of fossil 

11 fuel, alone or in combination with any other fuel, re12 gardless of the percentage of fossil fuel consumed. 

13 ‘‘(11) FUGITIVE EMISSIONS.—The term ‘fugi14 tive emissions’ means greenhouse gas emissions from 

15 leaks, valves, joints, or other small openings in 

16 pipes, ducts, or other equipment, or from vents. 

17 ‘‘(12) GEOLOGIC SEQUESTRATION SITE.—The 

18 term ‘geologic sequestration site’ means a site where 

19 a greenhouse gas is geologically sequestered. 

20 ‘‘(13) GREENHOUSE GAS.—The term ‘green21 house gas’ means any gas described or designated 

22 under section 712(a). 

23 ‘‘(14) GREENHOUSE GAS EMISSION.—The term 

24 ‘greenhouse gas emission’ means the release of a 

25 greenhouse gas into the ambient air, except— 


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1 ‘‘(A) a release of methane for which the 

2 Administrator imposes and collects a charge 

3 under section 136(c) of the Clean Air Act; 

4 ‘‘(B) a release of a hydrofluorocarbon that 

5 is regulated pursuant to title VI of this Act or 

6 section 103 of the Consolidated Appropriations 

7 Act, 2021; and 

8 ‘‘(C) greenhouse gases that are captured 

9 and geologically sequestered, unless the green10 house gas is later released into the ambient air. 

11 ‘‘(15) HAZARDOUS AIR POLLUTANT.—The term 

12 ‘hazardous air pollutant’ has the meaning given such 

13 term in section 112(a). 

14 ‘‘(16) HOLD.—The term ‘hold’ means, with re15 spect to an emission allowance, to have in the appro16 priate account in the emission allowance tracking 

17 system established under section 718. 

18 ‘‘(17) HOLDER.—The term ‘holder’ means, with 

19 respect to an emission allowance, the entity that 

20 holds such emission allowance. 

21 ‘‘(18) INDUSTRIAL SOURCE.—The term ‘indus22 trial source’ means any stationary source that— 

23 ‘‘(A) is not an electricity source; and 

24 ‘‘(B) is in— 


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1 ‘‘(i) the manufacturing sector (as de2 fined in North American Industrial Classi3 fication System codes 31, 32, and 33); or 

4 ‘‘(ii) the natural gas processing or 

5 natural gas pipeline transportation sector 

6 (as defined in North American Industrial 

7 Classification System codes 211112 and 

8 486210). 

9 ‘‘(19) NATURAL GAS LIQUID.—The term ‘nat10 ural gas liquid’ means ethane, butane, isobutane, 

11 natural gasoline, and propane. 

12 ‘‘(20) NATURAL GAS LOCAL DISTRIBUTION

13 COMPANY.—The term ‘natural gas local distribution 

14 company’ has the meaning given the term ‘local dis15 tribution company’ in section 2(17) of the Natural 

16 Gas Policy Act of 1978. 

17 ‘‘(21) NEGATIVE EMISSIONS ACTIVITIES

18 FUND.—The term ‘Negative Emissions Activities 

19 Fund’ means the fund established under section 105 

20 of the Climate Pollution Standard and Community 

21 Investment Act of 2024. 

22 ‘‘(22) OUTPUT.—The term ‘output’ means the 

23 total tons or other standard unit (as determined by 

24 the Administrator) produced by an entity in an in25 dustrial sector. 


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1 ‘‘(23) PETROLEUM.—The term ‘petroleum’ in2 cludes crude oil, tar sands, oil shale, and heavy oils. 

3 ‘‘(24) RETIRE.—The term ‘retire’, with respect 

4 to an emission allowance, means to disqualify such 

5 emission allowance for any subsequent use. 

6 ‘‘(25) SEQUESTERED; SEQUESTRATION.—The 

7 terms ‘sequestered’ and ‘sequestration’ mean the 

8 separation, isolation, or removal of greenhouse gases 

9 from the atmosphere, as determined by the Adminis10 trator. Such terms include biological, geologic, and 

11 mineral methods of separation, isolation, and re12 moval, but do not include ocean fertilization tech13 niques. 

14 ‘‘(26) TON.—The term ‘ton’ means a metric 

15 ton. 

16 ‘‘(27) VINTAGE YEAR.—The term ‘vintage year’ 

17 means the calendar year for which an emission al18 lowance is established under— 

19 ‘‘(A) section 715; or 

20 ‘‘(B) with respect to the establishment of 

21 the cost containment reserve, section 720. 

22 ‘‘SEC. 702. ECONOMY-WIDE REDUCTION GOAL. 

23 ‘‘It is the national goal for the United States— 

24 ‘‘(1) to achieve net-zero greenhouse gas emis25 sions by not later than 2050; and 


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1 ‘‘(2) for each year thereafter— 

2 ‘‘(A) to maintain net-zero greenhouse gas 

3 emissions; and 

4 ‘‘(B) seek to achieve net-negative green5 house gas emissions as determined necessary by 

6 the Administrator. 

7 ‘‘SEC. 703. LABOR STANDARDS. 

8 ‘‘The Administrator shall take such action as may be 

9 necessary to ensure that all laborers and mechanics em10 ployed by contractors or subcontractors on projects as11 sisted pursuant to this title, including projects funded in 

12 whole or in part by the proceeds from the sale of emission 

13 allowances or by financial incentives provided using such 

14 proceeds, shall be paid wages at rates not less than those 

15 prevailing for the same type of work on similar construc16 tion in the locality as determined by the Secretary of 

17 Labor, in accordance with subchapter IV of chapter 31 

18 of title 40, United States Code. The Secretary of Labor 

19 shall have, with respect to the labor standards specified 

20 in this section, the authority and functions set forth in 

21 Reorganization Plan No. 14 of 1950 (64 Stat. 1267; 5 

22 U.S.C. App.) and section 3145 of title 40, United States 

23 Code. 


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1 ‘‘SEC. 704. REGULATIONS. 

2 ‘‘Except as otherwise provided in this title, the Ad3 ministrator shall promulgate final regulations to carry out 

4 this title not later than 24 months after the date of enact5 ment of this title. 

6 ‘‘PART B—POLLUTION LIMITATION AND 

7 PHASEDOWN FROM COVERED ENTITIES 

8 ‘‘SEC. 711. AGGREGATE ENFORCEABLE TARGETS FOR COV9 ERED ENTITIES. 

10 ‘‘(a) IN GENERAL.—The Administrator shall, by rule, 

11 establish targets that are enforceable under this title for 

12 the aggregate quantity of greenhouse gas emissions of cov13 ered entities for each calendar year beginning in 2026 

14 such that— 

15 ‘‘(1) in 2026, the aggregate quantity of green16 house gas emissions (including attributable green17 house gas emissions) from covered entities is at least 

18 5 percent below the average annual aggregate quan19 tity of greenhouse gas emissions in 2022, 2023, and 

20 2024 from equivalent entities described in subsection 

21 (d)(1); 

22 ‘‘(2) in 2030, the aggregate quantity of green23 house gas emissions (including attributable green24 house gas emissions) from covered entities does not 

25 exceed 50 percent of the aggregate quantity of 


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1 greenhouse gas emissions in 2005 from equivalent 

2 entities described in subsection (d)(2); 

3 ‘‘(3) in 2040, the aggregate quantity of green4 house gas emissions (including attributable green5 house gas emissions) from covered entities does not 

6 exceed 30 percent of the aggregate quantity of 

7 greenhouse gas emissions in 2005 from equivalent 

8 entities described in subsection (d)(2); and 

9 ‘‘(4) in 2050, the aggregate quantity of green10 house gas emissions (including attributable green11 house gas emissions) from covered entities does not 

12 exceed 10 percent of the aggregate quantity of 

13 greenhouse gas emissions in 2005 from equivalent 

14 entities described in subsection (d)(2). 

15 ‘‘(b) ANNUAL REDUCTIONS.—Beginning with 2027, 

16 the Administrator shall, by rule, require the aggregate 

17 quantity of greenhouse gas emissions from covered entities 

18 to decline on an annual basis, by at least 2 percent of 

19 the aggregate quantity of greenhouse gas emissions in 

20 2005 from equivalent entities described in subsection 

21 (d)(2), until annual greenhouse gas emissions from cov22 ered entities do not exceed 10 percent of the aggregate 

23 quantity of greenhouse gas emissions in 2005 from equiva24 lent entities described in subsection (d)(2). Upon achiev25 ing such an annual aggregate quantity, the Administrator 


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1 shall ensure that any future annual quantity of green2 house gas emissions from covered entities does not exceed 

3 the annual aggregate quantity of greenhouse gas emis4 sions from covered entities in the preceding year. 

5 ‘‘(c) ADDITION OF COVERED ENTITIES OR GREEN6 HOUSE GASES, OR CHANGE IN EXCHANGE VALUES.—The 

7 quantities calculated pursuant to subsections (a) and (b) 

8 may not be revised to reflect— 

9 ‘‘(1) an entity becoming or ceasing to be a cov10 ered entity after the date of the establishment of 

11 targets pursuant to subsection (a); 

12 ‘‘(2) the designation of a gas as a greenhouse 

13 gas pursuant to section 712 after such date; or 

14 ‘‘(3) the revision of the carbon dioxide equiva15 lent value of any greenhouse gas pursuant to section 

16 713 after such date. 

17 ‘‘(d) EQUIVALENT ENTITIES DESCRIBED.—An entity 

18 is an equivalent entity described in this subsection if— 

19 ‘‘(1) for purposes of subsection (a)(1), the enti20 ty would have been a covered entity in 2022, 2023, 

21 or 2024, if— 

22 ‘‘(A) the definition of a covered entity in 

23 section 701 had been in effect for the respective 

24 year; and 


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1 ‘‘(B) the references in such definition to 

2 2024 were references to 2022; and 

3 ‘‘(2) for purposes of paragraphs (2) through (4) 

4 of subsection (a), an entity that would have been a 

5 covered entity in 2005, if— 

6 ‘‘(A) the definition of a covered entity in 

7 section 701 had been in effect for the respective 

8 year; and 

9 ‘‘(B) the references in such definition to 

10 2024 were references to 2005. 

11 ‘‘SEC. 712. DESIGNATION OF GREENHOUSE GASES. 

12 ‘‘(a) GREENHOUSE GASES.—For purposes of this 

13 title, the following are greenhouse gases: 

14 ‘‘(1) Carbon dioxide. 

15 ‘‘(2) Methane. 

16 ‘‘(3) Nitrous oxide. 

17 ‘‘(4) Sulfur hexafluoride. 

18 ‘‘(5) Any hydrofluorocarbon. 

19 ‘‘(6) Any perfluorocarbon. 

20 ‘‘(7) Nitrogen trifluoride. 

21 ‘‘(8) Any other anthropogenic gas designated as 

22 a greenhouse gas by the Administrator under sub23 section (b). 

24 ‘‘(b) DETERMINATION OF ADDITIONAL GREENHOUSE

25 GASES.—The Administrator, by rule— 


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1 ‘‘(1) may determine whether 1 ton of an an2 thropogenic gas makes the same or greater contribu3 tion to global warming over 100 years as 1 ton of 

4 carbon dioxide; 

5 ‘‘(2) shall publish, in accordance with section 

6 713, the carbon dioxide equivalent value for each gas 

7 with respect to which the Administrator makes an 

8 affirmative determination under paragraph (1); 

9 ‘‘(3) may for each gas with respect to which the 

10 Administrator makes an affirmative determination 

11 under paragraph (1) and that is used as a substitute 

12 for a class I or class II substance pursuant to title 

13 VI of this Act, determine the extent to which to reg14 ulate that gas pursuant to title VI of this Act; and 

15 ‘‘(4) may designate as a greenhouse gas for 

16 purposes of this title each gas for which the Admin17 istrator makes an affirmative determination under 

18 paragraph (1), to the extent that it is not regulated 

19 pursuant to title VI or section 103 of the Consoli20 dated Appropriations Act, 2021. 

21 ‘‘SEC. 713. CARBON DIOXIDE EQUIVALENT VALUE OF 

22 GREENHOUSE GASES. 

23 ‘‘(a) MEASURE OF QUANTITY OF GREENHOUSE

24 GASES.—Any provision of this title that refers to a quan25 tity or percentage of a quantity of a greenhouse gas means 


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1 the quantity or percentage of the greenhouse gas ex2 pressed in carbon dioxide equivalent. 

3 ‘‘(b) INITIAL VALUE.—Except as revised by the Ad4 ministrator pursuant to subsection (c), the carbon dioxide 

5 equivalent value for purposes of this title for any green6 house gas shall be the 100-year Global Warming Potential 

7 for the greenhouse gas provided in the most recent assess8 ment report from the Intergovernmental Panel on Climate 

9 Change as of the date of enactment of this title. 

10 ‘‘(c) PERIODIC REVISION.— 

11 ‘‘(1) REVISION AND PUBLICATION.—Not later 

12 than January 1, 2030, and (except as provided in 

13 paragraph (3)) not less than once every 5 years 

14 thereafter, the Administrator shall— 

15 ‘‘(A) revise the carbon dioxide equivalent 

16 value for purposes of this title for any green17 house gas to reflect the 100-year Global Warm18 ing Potential provided in the most recent as19 sessment report from the Intergovernmental 

20 Panel on Climate Change (or any successor or21 ganization); and 

22 ‘‘(B) publish in the Federal Register any 

23 such revision. 

24 ‘‘(2) EFFECTIVE DATE OF REVISION.—A revi25 sion published in the Federal Register under paraVerDate Sep 11 2014 01:45 Aug 24, 2024 Jkt 049200 PO 00000 Frm 00020 Fmt 6652 Sfmt 6201 E:\BILLS\H9230.IH H9230

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1 graph (1)(B) shall take effect for greenhouse gas 

2 emissions on January 1 of the first calendar year 

3 that begins at least 9 months after the date on 

4 which the revision was published. 

5 ‘‘(3) DECREASE IN FREQUENCY.—The Adminis6 trator may decrease the frequency of revision under 

7 paragraph (1) if the Administrator determines that 

8 such decrease is appropriate in order to synchronize 

9 such revision with any similar revision process car10 ried out pursuant to the United Nations Framework 

11 Convention on Climate Change or to an agreement 

12 negotiated under that convention. 

13 ‘‘SEC. 714. GREENHOUSE GAS REGISTRY FOR MONITORING 

14 AND REPORTING. 

15 ‘‘(a) REPORTING ENTITY.—In this section, the term 

16 ‘reporting entity’ means an entity that is— 

17 ‘‘(1) a covered entity; 

18 ‘‘(2) an entity that is required to report under 

19 part 98 of title 40, Code of Federal Regulations (or 

20 any successor regulations); 

21 ‘‘(3) an entity that receives emission allowances 

22 under section 723; or 

23 ‘‘(4) any other entity that the Administrator de24 termines to be a reporting entity for purposes of this 

25 title. 


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1 ‘‘(b) REGULATIONS.— 

2 ‘‘(1) IN GENERAL.—Not later than 6 months 

3 after the date of enactment of this title, the Admin4 istrator shall issue regulations establishing a Federal 

5 greenhouse gas registry. 

6 ‘‘(2) REPORTING.—Except as provided in para7 graphs (3) and (4), such regulations— 

8 ‘‘(A) shall require reporting entities to re9 port to the Administrator consistent with part 

10 98 of title 40, Code of Federal Regulations (or 

11 any successor regulations); 

12 ‘‘(B) may include reporting requirements 

13 that are additional to the requirements under 

14 such part 98 of title 40, Code of Federal Regu15 lations (or any successor regulations), as deter16 mined appropriate by the Administrator to im17 plement this title; and 

18 ‘‘(C) shall ensure the completeness, con19 sistency, transparency, accuracy, precision, and 

20 reliability of data included in the Federal green21 house gas registry. 

22 ‘‘(3) TIMING.—For calendar year 2026 and 

23 each subsequent calendar year, each reporting entity 

24 shall submit annually data required under this sec25 tion to the Administrator not later than 60 days 


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1 after the end of the applicable calendar year, except 

2 when the data is already being reported to the Ad3 ministrator on an earlier timeframe. 

4 ‘‘(4) WAIVER OF REPORTING REQUIREMENTS.— 

5 The Administrator may waive reporting require6 ments under this section for specific entities to the 

7 extent that the Administrator determines that suffi8 cient and equally or more reliable, verified, and time9 ly data are available to the Administrator and the 

10 public on the internet under other mandatory, statu11 tory Federal requirements. 

12 ‘‘SEC. 715. EMISSION ALLOWANCES. 

13 ‘‘(a) IN GENERAL.—The Administrator shall estab14 lish a quantity of emission allowances for each calendar 

15 year starting in 2026 as necessary to achieve the targets 

16 under section 711(a) and the reductions under section 

17 711(b). 

18 ‘‘(b) IDENTIFICATION NUMBERS.—The Adminis19 trator shall assign to each emission allowance established 

20 under subsection (a) a unique identification number that 

21 includes the vintage year for that emission allowance. 

22 ‘‘(c) EMISSION ALLOWANCES FOR EACH CALENDAR

23 YEAR.— 

24 ‘‘(1) COMPLIANCE PERIODS 1 AND 2.—Not later 

25 than January 1, 2026, the Administrator shall esVerDate Sep 11 2014 01:45 Aug 24, 2024 Jkt 049200 PO 00000 Frm 00023 Fmt 6652 Sfmt 6201 E:\BILLS\H9230.IH H9230

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1 tablish the quantity of emission allowances for each 

2 year in compliance period 1 and compliance period 

3 2. 

4 ‘‘(2) FOLLOWING TWO COMPLIANCE PERIODS.— 

5 Not later than July 1, 2031, and every 6 years 

6 thereafter, the Administrator shall establish the 

7 quantity of emission allowances for each calendar 

8 year of the following two compliance periods. When 

9 establishing the quantity of emission allowances 

10 under this paragraph for a calendar year, the Ad11 ministrator shall, consistent with subsection (a), con12 sider— 

13 ‘‘(A) the economy-wide reduction goals es14 tablished by section 702; 

15 ‘‘(B) the total number of emission allow16 ances in circulation, as required to be published 

17 by subsection 716(e); and 

18 ‘‘(C) other factors determined appropriated 

19 by the Administrator. 

20 ‘‘(3) FAILURE TO SET EMISSION ALLOWANCE

21 QUANTITY.—If the Administrator fails to establish 

22 the quantity of emission allowances for a compliance 

23 period by the start of the first calendar year of the 

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1 ances established for each calendar year of such 

2 compliance period shall be the amount equal to— 

3 ‘‘(A) the quantity of emission allowances 

4 established for the preceding calendar year; 

5 minus 

6 ‘‘(B) the quantity of emission allowances 

7 that is equal to 3.5 percent of the aggregate 

8 quantity of greenhouse gas emissions in 2005. 

9 ‘‘SEC. 716. PROHIBITION OF EXCESS GREENHOUSE GAS 

10 EMISSIONS. 

11 ‘‘(a) PROHIBITION.—Effective January 1, 2026, a 

12 covered entity may not emit greenhouse gas emissions and 

13 have attributable greenhouse gas emissions, in combina14 tion, in excess of the quantity of greenhouse gas emissions 

15 represented by the number of emission allowances surren16 dered by the covered entity pursuant to subsection (b)(3) 

17 for the compliance period. 

18 ‘‘(b) DEMONSTRATING COMPLIANCE.—Except as 

19 otherwise provided in this section, a covered entity shall 

20 surrender to the Administrator for retirement— 

21 ‘‘(1) by 12:01 a.m. on April 1 (or a later date 

22 established by the Administrator under subsection 

23 (h)) of the second year of a compliance period, not 

24 less than the number of emission allowances needed 

25 to represent 50 percent of the total quantity of 


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1 greenhouse gas emissions and attributable green2 house gas emissions, in combination, of the covered 

3 entity during the first year of the compliance period; 

4 ‘‘(2) by 12:01 a.m. on April 1 (or a later date 

5 established by the Administrator under subsection 

6 (h)) of the third year of a compliance period, not 

7 less than the number of emission allowances (includ8 ing those surrendered pursuant to paragraph (1) for 

9 the compliance period) needed to represent 50 per10 cent of the total quantity of greenhouse gas emis11 sions and attributable greenhouse gas emissions, in 

12 combination, of the covered entity during the first 2 

13 years of the compliance period; and 

14 ‘‘(3) by 12:01 a.m. on April 1 (or a later date 

15 established by the Administrator under subsection 

16 (h)) of the year following a compliance period, not 

17 less than the number of emission allowances (includ18 ing those surrendered pursuant to paragraphs (1) 

19 and (2) for the compliance period) needed to rep20 resent 100 percent of the total quantity of green21 house gas emissions and attributable greenhouse gas 

22 emissions, in combination, of the covered entity dur23 ing the full compliance period. 

24 ‘‘(c) APPLICATION TO FRACTIONS OF TONS.—For 

25 purposes of this section, any amount less than 1 ton of 


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1 carbon dioxide equivalent of greenhouse gas emissions or 

2 attributable greenhouse gas emissions shall be treated as 

3 1 ton of such carbon dioxide equivalent. 

4 ‘‘(d) RETIREMENT OF EMISSION ALLOWANCES.—As 

5 soon as practicable after each deadline established under 

6 subsection (b), the Administrator shall retire the quantity 

7 of emission allowances surrendered by covered entities 

8 pursuant to subsection (b)(3) for the compliance period. 

9 ‘‘(e) TOTAL NUMBER OF ALLOWANCES IN CIRCULA10 TION.—As soon as practicable after the deadline described 

11 in subsection (b)(3), the Administrator shall publish an 

12 estimate of the total quantity of emission allowances held 

13 by all persons on the day after such deadline. 

14 ‘‘(f) DESIGNATED REPRESENTATIVES.—The final 

15 regulations promulgated under section 703 shall require 

16 that each covered entity, and each entity holding emission 

17 allowances or receiving emission allowances from the Ad18 ministrator under this title, submit to the Administrator 

19 a certificate of representation designating a designated 

20 representative. 

21 ‘‘(g) EDUCATION AND OUTREACH.—The Adminis22 trator shall establish and carry out a program of education 

23 and outreach to assist covered entities in meeting the re24 quirements of this title. Such program shall include eduVerDate Sep 11 2014 01:45 Aug 24, 2024 Jkt 049200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\H9230.IH H9230

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1 cation with respect to using markets to effectively meet 

2 such requirements. 

3 ‘‘(h) ADJUSTMENT OF DEADLINE.—The Adminis4 trator may, by rule, establish a deadline for demonstrating 

5 compliance in accordance with subsection (b) later than 

6 the date otherwise provided in subsection (b), as necessary 

7 to ensure the availability of greenhouse gas emissions 

8 data, but in no event shall the deadline be later than June 

9 1 of the respective calendar year. 

10 ‘‘SEC. 717. PENALTY FOR NONCOMPLIANCE. 

11 ‘‘(a) EXCESS GREENHOUSE GAS EMISSIONS PEN12 ALTY.— 

13 ‘‘(1) IN GENERAL.—A covered entity that fails 

14 for any year to demonstrate compliance as required 

15 by section 716 by the applicable deadline shall be 

16 liable for payment to the Administrator of a civil 

17 penalty in the amount described in paragraph (2). 

18 ‘‘(2) AMOUNT.—The amount of a penalty re19 quired to be paid under paragraph (1) shall be equal 

20 to the product obtained by multiplying— 

21 ‘‘(A) the number of tons of carbon dioxide 

22 equivalent of greenhouse gas emissions and at23 tributable greenhouse gas emissions for which 

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1 ance as required by section 716 by the applica2 ble deadline; by 

3 ‘‘(B) 3 times the auction clearing price for 

4 the earliest vintage year emission allowances in 

5 the last auction carried out pursuant to section 

6 720 before such deadline. 

7 ‘‘(3) TIMING.—A penalty under this subsection 

8 shall be immediately due and payable to the Admin9 istrator, without demand. 

10 ‘‘(4) NO EFFECT ON LIABILITY.—A penalty due 

11 and payable by a covered entity under this sub12 section may not diminish the liability of the covered 

13 entity for any fine, penalty, or assessment against 

14 the covered entity for the same violation under any 

15 other provision of this Act or any other law. 

16 ‘‘(b) EXCESS EMISSIONS ALLOWANCES.—A covered 

17 entity that fails to demonstrate compliance for any year, 

18 as described in subsection (a)(1), shall be liable to offset 

19 the covered entity’s excess greenhouse gases emissions and 

20 attributable greenhouse gas emissions by an equal quan21 tity of emission allowances during the year after the year 

22 in which such failure to demonstrate compliance occurred, 

23 or such longer period as the Administrator may prescribe. 

24 ‘‘(c) TREATMENT AS SEPARATE VIOLATION.—For 

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1 lent for which a covered entity fails to demonstrate compli2 ance as required by section 716 shall be treated as a sepa3 rate violation. 

4 ‘‘SEC. 718. TRACKING SYSTEM. 

5 ‘‘The final regulations promulgated under section 

6 703 shall include a system for issuing, recording, holding, 

7 and tracking emission allowances. Such system shall pro8 vide for appropriate publication of the information in the 

9 system on the internet. 

10 ‘‘SEC. 719. PROGRAM FLEXIBILITY. 

11 ‘‘(a) PERMITTED TRANSACTIONS.—Except as other12 wise provided in this title, the lawful holder of an emission 

13 allowance may— 

14 ‘‘(1) without restriction, sell, exchange, or 

15 transfer the emission allowance; 

16 ‘‘(2) subject to subsection (c), hold the emission 

17 allowance; and 

18 ‘‘(3) request that the Administrator retire the 

19 emission allowance. 

20 ‘‘(b) BANKING.—An emission allowance may be used 

21 to comply with section 716 for emissions in— 

22 ‘‘(1) the vintage year for the emission allow23 ance; or 

24 ‘‘(2) any calendar year subsequent to the vin25 tage year for the emission allowance. 


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1 ‘‘(c) HOLDING LIMIT.—Beginning after compliance 

2 period 1, a covered entity may retain emission allowances 

3 issued for vintage years in previous compliance periods 

4 representing no more than 100 percent of the total quan5 tity of greenhouse gas emissions and attributable green6 house gas emissions, in combination, of the covered entity 

7 during the preceding compliance period. 

8 ‘‘(d) NO RESTRICTION ON TRANSACTIONS.—The 

9 privilege of purchasing, holding, selling, exchanging, 

10 transferring, and requesting retirement of emission allow11 ances may not be restricted to covered entities, except as 

12 otherwise provided in this title. 

13 ‘‘SEC. 720. AUCTION PROCEDURES. 

14 ‘‘(a) IN GENERAL.—For each calendar year for which 

15 the Administrator establishes emission allowances under 

16 section 715, the Administrator shall auction emission al17 lowances in accordance with the following: 

18 ‘‘(1) FREQUENCY; FIRST AUCTION.—Auctions 

19 shall be conducted quarterly, with the first auction 

20 to be conducted not later than March 31, 2026. 

21 ‘‘(2) AUCTION SCHEDULE; CURRENT AND FU22 TURE VINTAGES.—The Administrator— 

23 ‘‘(A) at each quarterly auction under this 

24 section, shall offer both a portion of the emis25 sion allowances for the same vintage year as the 


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1 year in which the auction is being conducted 

2 and a portion of the emission allowances for fu3 ture vintage years; 

4 ‘‘(B) may offer at any auction under this 

5 section emission allowances for vintage years of 

6 up to 6 years after the year in which the auc7 tion is being conducted; and 

8 ‘‘(C) during a vintage year, shall make 

9 available for auction not less than 50 percent of 

10 the emission allowances established under sec11 tion 715 for the vintage year, including any 

12 such emissions allowances— 

13 ‘‘(i) auctioned on consignment pursu14 ant to section 721; or 

15 ‘‘(ii) made available for auction from 

16 the emissions containment reserve. 

17 ‘‘(3) AUCTION FORMAT.—Auctions shall follow 

18 a single-round, sealed-bid, uniform price format. 

19 ‘‘(4) PARTICIPATION; FINANCIAL ASSURANCE.— 

20 Auctions shall be open to any person, except that 

21 the Administrator may establish financial assurance 

22 requirements to ensure that auction participants will 

23 perform on their bids. 

24 ‘‘(5) DISCLOSURE OF BENEFICIAL OWNER25 SHIP.—Each bidder in an auction shall be required 


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1 to disclose the person or entity sponsoring or bene2 fiting from the bidder’s participation in the auction 

3 if such person or entity is, in whole or in part, other 

4 than the bidder. 

5 ‘‘(6) PURCHASE LIMITS.—No person may, di6 rectly or in concert with one or more other partici7 pants, purchase more than 5 percent of the emission 

8 allowances offered at any quarterly auction. 

9 ‘‘(7) PUBLICATION OF INFORMATION.—After an 

10 auction, the Administrator shall, in a timely fashion, 

11 publish the identities of winning bidders, the quan12 tity of emission allowances obtained by each winning 

13 bidder, and the auction clearing price determined by 

14 the Administrator. 

15 ‘‘(b) REGULATIONS.— 

16 ‘‘(1) INITIAL REGULATIONS.—Not later than 12 

17 months after the date of enactment of this title, the 

18 Administrator, in consultation with other Federal 

19 agencies, as appropriate, shall promulgate regula20 tions governing the auction of emission allowances 

21 under this section and section 721. 

22 ‘‘(2) REVISED REGULATIONS.—Not earlier than 

23 January 1, 2029, the Administrator may, in con24 sultation with other Federal agencies, as appro25 priate, at any time, revise the initial regulations proVerDate Sep 11 2014 01:45 Aug 24, 2024 Jkt 049200 PO 00000 Frm 00033 Fmt 6652 Sfmt 6201 E:\BILLS\H9230.IH H9230

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1 mulgated under paragraph (1). Such revised regula2 tions need not meet the requirements identified in 

3 subsection (a) if the Administrator determines that 

4 an alternative auction design would be more effec5 tive, taking into account factors including costs of 

6 administration, transparency, fairness, and risks of 

7 collusion or manipulation. In determining whether 

8 and how to revise the initial regulations, the Admin9 istrator may not consider maximization of revenues 

10 to the Federal Government. 

11 ‘‘(3) OTHER REQUIREMENTS.—The Adminis12 trator may include in the regulations under this sub13 section such other requirements or provisions as the 

14 Administrator, in consultation with other Federal 

15 agencies, as appropriate, considers appropriate to 

16 promote effective, efficient, transparent, and fair ad17 ministration of auctions. 

18 ‘‘(c) MINIMUM PRICE.—The minimum price for any 

19 emission allowance auctioned under this section shall be 

20 $15 for any auction occurring in calendar year 2026. The 

21 minimum price for an emission allowance auctioned under 

22 this section for any auction occurring after calendar year 

23 2026 shall be— 

24 ‘‘(1) the minimum price applicable under this 

25 subsection for the previous calendar year; plus 


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1 ‘‘(2) the dollar amount that is equal to— 

2 ‘‘(A) such minimum price; multiplied by 

3 ‘‘(B) the percent that is the sum of— 

4 ‘‘(i) 5 percent; plus 

5 ‘‘(ii) the percentage change in the 

6 Consumer Price Index (for all urban con7 sumers) for the previous calendar year. 

8 ‘‘(d) COST CONTAINMENT RESERVE.— 

9 ‘‘(1) IN GENERAL.—The Administrator shall— 

10 ‘‘(A) establish a cost containment reserve; 

11 ‘‘(B) deposit into such reserve emission al12 lowances established pursuant to paragraph (2) 

13 and emission allowances described in subsection 

14 (e)(4); and 

15 ‘‘(C) make available for auction allowances 

16 in such reserve in accordance with paragraph 

17 (4). 

18 ‘‘(2) DEPOSITS INTO RESERVE.— 

19 ‘‘(A) FILLING THE RESERVE INITIALLY.— 

20 The Administrator shall establish, and deposit 

21 into the cost containment reserve, a quantity of 

22 emission allowances equal to the average annual 

23 aggregate quantity of greenhouse gas emissions 

24 in calendar years 2022, 2023, and 2024 from 


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1 equivalent entities described in section 711(d) 

2 for the respective calendar years. 

3 ‘‘(B) REFILLING THE RESERVE.—Fol4 lowing any auction under this section, if any 

5 emission allowances that were offered at the 

6 auction were not purchased, the Administrator 

7 shall— 

8 ‘‘(i) deposit a quantity, as determined 

9 appropriate by the Administrator, of such 

10 emission allowances in the cost contain11 ment reserve; and 

12 ‘‘(ii) retire the remaining quantity of 

13 such emission allowances. 

14 ‘‘(C) SPECIAL RULE.—If any emission al15 lowances established pursuant to subparagraph 

16 (A) remain in the cost containment reserve, the 

17 Administrator shall retire one such emission al18 lowance for each emission allowance deposited 

19 into the reserve under subparagraph (B). 

20 ‘‘(3) PRICE TRIGGERS.— 

21 ‘‘(A) ANNUAL DETERMINATION.—Each 

22 calendar year, the Administrator shall set at 

23 least two price triggers at which, if the auction 

24 clearing price for an auction under this section 

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1 ministrator may offer at such auction emission 

2 allowances from the cost containment reserve. 

3 ‘‘(B) LOWEST PRICE TRIGGER.—The Ad4 ministrator may not set a price trigger under 

5 subparagraph (A) for a calendar year that is 

6 less than 4 multiplied by the minimum price of 

7 an emission allowance for that calendar year 

8 under subsection (c). 

9 ‘‘(4) RELEASE OF EMISSION ALLOWANCES.—If 

10 the auction clearing price for an auction conducted 

11 under this section meets or exceeds a price trigger 

12 set under paragraph (3), the Administrator may, 

13 with respect to such a price trigger, offer at such 

14 auction up to 5 percent of the emission allowances 

15 in the cost containment reserve at the beginning of 

16 the calendar year. For any auction under this sec17 tion, the Administrator may not offer more than 10 

18 percent of the emission allowances in the cost con19 tainment reserve. 

20 ‘‘(e) EMISSIONS CONTAINMENT RESERVE.— 

21 ‘‘(1) IN GENERAL.—The Administrator shall— 

22 ‘‘(A) establish an emissions containment 

23 reserve; 

24 ‘‘(B) each calendar year, deposit into such 

25 reserve 10 percent of the emission allowances 


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1 established under section 715 for such calendar 

2 year; and 

3 ‘‘(C) make available for auction emission 

4 allowances in such reserve pursuant to para5 graph (3). 

6 ‘‘(2) PRICE TRIGGERS.— 

7 ‘‘(A) ANNUAL DETERMINATION.—Each 

8 calendar year, the Administrator shall set at 

9 least two price triggers at which, if the auction 

10 clearing price for an auction under this section 

11 would meet or exceed the price trigger, the Ad12 ministrator will make available for auction 

13 emission allowances from the emissions contain14 ment reserve. 

15 ‘‘(B) LOWEST PRICE TRIGGER.—The Ad16 ministrator may not set a price trigger under 

17 subparagraph (A) for a calendar year that is 

18 less than 125 percent of the minimum price of 

19 an emission allowance for that calendar year 

20 under subsection (c). 

21 ‘‘(3) RELEASE OF EMISSION ALLOWANCES.—At 

22 any auction under this section, the Administrator— 

23 ‘‘(A) may not offer more than 25 percent 

24 of the emission allowances deposited into the 

25 emissions containment reserve for the respective 


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1 calendar year at any of the auctions under this 

2 section in such calendar year; and 

3 ‘‘(B) for each price trigger met or exceeded 

4 by the auction clearing price, the Administrator 

5 may offer up to 12.5 percent of the emission al6 lowances deposited into the emissions contain7 ment reserve for the respective calendar year. 

8 ‘‘(4) ALLOWANCES NOT PURCHASED.—At the 

9 end of each calendar year, any emission allowance in 

10 the emissions containment reserve offered but not 

11 purchased at auction may be deposited into the cost 

12 containment reserve pursuant to subsection 

13 (d)(2)(B). 

14 ‘‘(f) PUBLIC AUCTION INFORMATION.—Prior to the 

15 first auction under this section each calendar year, the Ad16 ministrator shall publish the following: 

17 ‘‘(1) The minimum price for an emission allow18 ance for such calendar year under subsection (c). 

19 ‘‘(2) The number of emission allowances of each 

20 vintage year to be offered at each auction in such 

21 calendar year. 

22 ‘‘(3) The number and dollar amounts of the 

23 price triggers for such calendar year for the cost 

24 containment reserve established under subsection 

25 (d). 


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1 ‘‘(4) The number and dollar amounts of the 

2 price triggers for such calendar year for the emis3 sions containment reserve established under sub4 section (e). 

5 ‘‘(5) Any additional information determined to 

6 be appropriate by the Administrator. 

7 ‘‘(g) DELEGATION OR CONTRACT.—The Adminis8 trator may by delegation or contract provide for the con9 duct of auctions under this section under the Administra10 tor’s supervision— 

11 ‘‘(1) by other departments or agencies of the 

12 Federal Government; or 

13 ‘‘(2) by nongovernmental agencies, groups, or 

14 organizations. 

15 ‘‘SEC. 721. CONSIGNMENT AUCTIONS. 

16 ‘‘(a) VOLUNTARY CONSIGNMENT.—Any entity hold17 ing emission allowances may request that the Adminis18 trator make available for auction under section 720 the 

19 emission allowances on consignment. 

20 ‘‘(b) MANDATORY CONSIGNMENT.— 

21 ‘‘(1) CONDITIONAL ALLOCATIONS.—Before any 

22 emission allowance allocated under subsection (a) or 

23 (b) of section 722 (including any emission allowance 

24 transferred to a covered entity pursuant to section 

25 722(a)(3)(B) or section 722(a)(6)(B)(ii)) may be 


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1 sold, further transferred, retired, or used to dem2 onstrate compliance under section 716, such emis3 sion allowance shall be made available for auction on 

4 consignment pursuant to this section and section 

5 720. 

6 ‘‘(2) TRANSPARENCY.—The Administrator shall 

7 publish— 

8 ‘‘(A) the names of entities holding emission 

9 allowances that are made available for auction 

10 on consignment pursuant to paragraph (1); 

11 ‘‘(B) the quantities of emission allowances 

12 that are so made available for auction; and 

13 ‘‘(C) any additional information relating to 

14 emission allowances that are so made available 

15 for auction, as determined by the Adminis16 trator. 

17 ‘‘(c) PROCEEDS.—Notwithstanding section 3302 of 

18 title 31, United States Code— 

19 ‘‘(1) the Federal Government shall, not later 

20 than 90 days after receipt of the proceeds from any 

21 auction on consignment pursuant to subsection 

22 (b)(1), transfer such proceeds to the entity that re23 quested the Administrator offer the respective emis24 sion allowances at an auction under section 720; and 


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1 ‘‘(2) no such proceeds shall be held by any offi2 cer or employee of the United States or treated for 

3 any purpose as public monies. 

4 ‘‘(d) UNSOLD EMISSION ALLOWANCES.—The Admin5 istrator shall return to the entity offering an emission al6 lowance at auction on consignment pursuant to this sec7 tion any such allowance that is not sold at the auction. 

8 ‘‘SEC. 722. ALLOCATION OF EMISSION ALLOWANCES. 

9 ‘‘(a) FOR THE BENEFIT OF CONSUMERS.— 

10 ‘‘(1) IN GENERAL.—Beginning with vintage 

11 year 2026, the Administrator shall allocate emission 

12 allowances established each calendar year under sec13 tion 715(a) to States and Indian Tribes in the fol14 lowing amounts: 

15 ‘‘(A) For compliance period 1, 30 percent 

16 of the emission allowances established for each 

17 year of such compliance period under section 

18 715(a). 

19 ‘‘(B) For compliance period 2, 27 percent 

20 of the emission allowances established for each 

21 year of such compliance period under section 

22 715(a). 

23 ‘‘(C) For compliance period 3, 24 percent 

24 of the emission allowances established for each 


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1 year of such compliance period under section 

2 715(a). 

3 ‘‘(D) For compliance period 4, 21 percent 

4 of the emission allowances established for each 

5 year of such compliance period under section 

6 715(a). 

7 ‘‘(E) For compliance period 5, 18 percent 

8 of the emission allowances established for each 

9 year of such compliance period under section 

10 715(a). 

11 ‘‘(F) For compliance period 6, 15 percent 

12 of the emission allowances established for each 

13 year of such compliance period under section 

14 715(a). 

15 ‘‘(G) For compliance period 7, 12 percent 

16 of the emission allowances established for each 

17 year of such compliance period under section 

18 715(a). 

19 ‘‘(H) For compliance period 8, 9 percent of 

20 the emission allowances established for each 

21 year of such compliance period under section 

22 715(a). 

23 ‘‘(I) For compliance period 9, 6 percent of 

24 the emission allowances established for each 


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1 year of such compliance period under section 

2 715(a). 

3 ‘‘(J) For compliance period 10, 3 percent 

4 of the emission allowances established for each 

5 year of such compliance period under section 

6 715(a). 

7 ‘‘(K) For each subsequent compliance pe8 riod, 0 percent of the emission allowances es9 tablished for each year of such compliance peri10 ods under section 715(a). 

11 ‘‘(2) DISTRIBUTION.—Not later than December 

12 31 of each year, the Administrator shall distribute 

13 among States and Indian Tribes the quantity of 

14 emission allowances allocated under paragraph (1) 

15 for the following vintage year, ratably based on the 

16 ratio of— 

17 ‘‘(A) the aggregate quantity of greenhouse 

18 gases emitted within a jurisdiction in the sec19 ond preceding vintage year associated with the 

20 combustion of fuels for— 

21 ‘‘(i) electricity generation; and 

22 ‘‘(ii) residential and commercial end 

23 uses of fuels, excluding end uses related to 

24 transportation; to 


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1 ‘‘(B) the aggregate quantity of greenhouse 

2 gases emitted within the United States in the 

3 second preceding vintage year associated with 

4 the combustion of fuels for— 

5 ‘‘(i) electricity generation; and 

6 ‘‘(ii) residential and commercial end 

7 uses of fuels, excluding end uses related to 

8 transportation. 

9 ‘‘(3) USE OF EMISSION ALLOWANCES.—States 

10 and Indian Tribes shall— 

11 ‘‘(A) sell, on consignment in accordance 

12 with section 721, the emission allowances allo13 cated under this subsection and use the pro14 ceeds of such sales exclusively for the benefit of 

15 consumers of electricity and residential and 

16 commercial end users of fuels by carrying out 

17 a— 

18 ‘‘(i) cost-effective energy efficiency 

19 program to reduce the use of electricity 

20 and fuel; 

21 ‘‘(ii) rebate or other financial incen22 tive program to encourage adoption and 

23 use of low-emission fuel alternatives, which 

24 may include a program that provides for 

25 electrification; or 


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1 ‘‘(iii) rebate or other direct financial 

2 assistance program, which may include a 

3 low-income ratepayer assistance program; 

4 or 

5 ‘‘(B) transfer, on a nonreimburseable 

6 basis, such emission allowances to one or more 

7 covered entities responsible for greenhouse gas 

8 emissions or attributable greenhouse gas emis9 sions within the jurisdiction of the State or In10 dian Tribe to be used by such entities exclu11 sively for the benefit of consumers of electricity 

12 and residential and commercial end users of 

13 fuels. 

14 ‘‘(4) ADMINISTRATIVE EXPENSES.—States and 

15 Indian Tribes may use up to 5 percent of the pro16 ceeds from the sale of emission allowances allocated 

17 under this subsection for administrative purposes in 

18 carrying out programs under paragraph (3). 

19 ‘‘(5) REPORTING.—Each State and Indian 

20 Tribe receiving emission allowances under this sub21 section shall submit to the Administrator, not later 

22 than 12 months after each receipt of such emission 

23 allowances, a report, in accordance with such re24 quirements as the Administrator may prescribe, 

25 that— 


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1 ‘‘(A) describes the use of emission allow2 ances sold or transferred under paragraph (3), 

3 including a description of the energy efficiency, 

4 fuel switching, and consumer assistance pro5 grams supported pursuant to paragraph (3); 

6 ‘‘(B) includes an evaluation, prepared by 

7 an independent third party, of the performance 

8 of the energy efficiency, fuel switching, and con9 sumer assistance programs supported pursuant 

10 to paragraph (3); and 

11 ‘‘(C) describes any transfer of emission al12 lowances to covered entities under paragraph 

13 (3)(B). 

14 ‘‘(6) ENFORCEMENT.—If the Administrator de15 termines a State or Indian Tribe is not in compli16 ance with this subsection, the Administrator may— 

17 ‘‘(A)(i) withhold a portion of emission al18 lowances under this subsection that would oth19 erwise be distributed to the State or Indian 

20 Tribe for the next vintage year; and 

21 ‘‘(ii) distribute such withheld emission al22 lowances among the remaining States and In23 dian Tribes ratably in accordance with the for24 mula under paragraph (2); or 


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1 ‘‘(B)(i) withhold a portion of emission al2 lowances under this subsection that would oth3 erwise be distributed to the State or Indian 

4 Tribe for the next vintage year; and 

5 ‘‘(ii) directly transfer, on a 

6 nonreimburseable basis, such withheld emission 

7 allowances to one or more covered entities re8 sponsible for greenhouse gas emissions or at9 tributable greenhouse gas emissions within the 

10 jurisdiction of such State or Indian Tribe to be 

11 used by such entities exclusively for the benefit 

12 of consumers as described in paragraph (3)(A). 

13 ‘‘(b) ENERGY-INTENSIVE, TRADE-EXPOSED INDUS14 TRIES.— 

15 ‘‘(1) IN GENERAL.—Beginning with vintage 

16 year 2026, the Administrator shall allocate emission 

17 allowances to eligible industry sectors designated 

18 and listed under section 723(a)(1), to be distributed 

19 in accordance with section 723, in the following 

20 amounts: 

21 ‘‘(A) For compliance periods 1 and 2, 15 

22 percent of the emission allowances established 

23 for each year of such compliance periods under 

24 section 715(a). 


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1 ‘‘(B) For compliance periods 3 and 4, 12 

2 percent of the emission allowances established 

3 for each year of such compliance periods under 

4 section 715(a). 

5 ‘‘(C) For compliance periods 5 and 6, 9 

6 percent of the emission allowances established 

7 for each year of such compliance periods under 

8 section 715(a). 

9 ‘‘(D) For compliance periods 7 and 8, 6 

10 percent of the emission allowances established 

11 for each year of such compliance periods under 

12 section 715(a). 

13 ‘‘(E) For compliance periods 9 and 10, 3 

14 percent of the emission allowances established 

15 for each year of such compliance periods under 

16 section 715(a). 

17 ‘‘(F) For each subsequent compliance pe18 riod, 0 percent of the emission allowances es19 tablished for each year of such compliance peri20 ods under section 715(a). 

21 ‘‘(2) CARRYOVER.—After the Administrator dis22 tributes emission allowances pursuant to section 723 

23 for any vintage year, any emission allowances allo24 cated to eligible industry sectors designated and listVerDate Sep 11 2014 01:45 Aug 24, 2024 Jkt 049200 PO 00000 Frm 00049 Fmt 6652 Sfmt 6201 E:\BILLS\H9230.IH H9230

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1 ed under section 723(a)(1) pursuant to this sub2 section that have not been so distributed shall— 

3 ‘‘(A) remain available for distribution pur4 suant to section 723 for the following vintage 

5 year; and 

6 ‘‘(B) be treated as part of the allocation to 

7 such entities for that following vintage year. 

8 ‘‘(c) LOW-INCOME CONSUMERS.—Beginning with 

9 vintage year 2026, the Administrator shall make available 

10 for auction, pursuant to section 720, 15 percent of the 

11 emission allowances established for each year under sec12 tion 715(a). The proceeds from such auction shall be made 

13 available to the Secretary of the Treasury to provide re14 bates under section 102 of the Climate Pollution Standard 

15 and Community Investment Act of 2024. 

16 ‘‘(d) STATE, TERRITORIAL, AND TRIBAL GOVERN17 MENTS.—Beginning with vintage year 2026, the Adminis18 trator shall make available for auction, pursuant to section 

19 720, 10 percent of the emission allowances established for 

20 each year under section 715(a), with the proceeds distrib21 uted to States and Indian Tribes pursuant to section 724. 

22 ‘‘(e) LOCAL GOVERNMENTS.—Beginning with vintage 

23 year 2026, the Administrator shall make available for auc24 tion, pursuant to section 720, 5 percent of the emission 

25 allowances established for each year under section 715(a). 


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1 The proceeds from such auction shall be made available 

2 to the Secretary of Energy to carry out subtitle E of title 

3 V of the Energy Independence and Security Act of 2007. 

4 ‘‘(f) JURISDICTIONS HOSTING HIGH-LEVEL NU5 CLEAR WASTE.— 

6 ‘‘(1) IN GENERAL.—Beginning with vintage 

7 year 2026, the Administrator shall make available 

8 for auction, pursuant to section 720, 0.5 percent of 

9 the emission allowances established for each year 

10 under section 715(a), with the proceeds provided to 

11 each State and Indian Tribe for which a repository 

12 where high-level radioactive waste and spent nuclear 

13 fuel are permanently disposed of is located within 

14 the jurisdiction of the State or Indian Tribe. 

15 ‘‘(2) NO ELIGIBLE STATE OR INDIAN TRIBE.— 

16 If no State or Indian Tribe is eligible to be provided 

17 proceeds under this subsection with respect to a vin18 tage year, such proceeds shall be provided to States 

19 and Indian Tribes pursuant to section 724. 

20 ‘‘(3) MULTIPLE STATES OR INDIAN TRIBES.—If 

21 more than one State or Indian Tribe is eligible for 

22 proceeds under this subsection with respect to a vin23 tage year, such proceeds shall be distributed ratably 

24 among such States and Indian Tribes based on the 

25 ratio of— 


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1 ‘‘(A) the mass of high-level radioactive 

2 waste and spent nuclear fuel permanently dis3 posed of within the jurisdictions of the respec4 tive States or Indian Tribes; relative to 

5 ‘‘(B) the mass of high-level radioactive 

6 waste and spent nuclear fuel permanently dis7 posed of in the United States. 

8 ‘‘(g) WORKER AND COMMUNITY ASSISTANCE.— 

9 ‘‘(1) IN GENERAL.—Beginning with vintage 

10 year 2026, the Administrator shall make available 

11 for auction, pursuant to section 720, 5 percent of 

12 the emission allowances established for each year 

13 under section 715(a), with the proceeds deposited 

14 into the Worker and Community Assistance Fund 

15 established under section 103 of the Climate Pollu16 tion Standard and Community Investment Act of 

17 2024. 

18 ‘‘(2) DETERMINATION OF ADDITIONAL REVE19 NUES NEEDED.—For any year, the Administrator, 

20 in consultation with the Secretary of the Treasury, 

21 the Secretary of Labor, and the Director of the Of22 fice of Energy and Economic Transition as estab23 lished by section 203 of the Climate Pollution 

24 Standard and Community Investment Act of 2024— 


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1 ‘‘(A) may determine that additional rev2 enue is necessary to carry out sections 206, 

3 207, and 208 of the Climate Pollution Standard 

4 and Community Investment Act of 2024; and 

5 ‘‘(B) if emission allowances are available 

6 and upon a determination under subparagraph 

7 (A), may offer at an auction pursuant to sec8 tion 720, in addition to the emission allowances 

9 made available for auction pursuant to para10 graph (1), up to 5 percent of emissions allow11 ances established for such year under section 

12 715(a), with the proceeds deposited into the 

13 Worker and Community Assistance Fund estab14 lished under section 103 of the Climate Pollu15 tion Standard and Community Investment Act 

16 of 2024. 

17 ‘‘(h) FRONTLINE COMMUNITIES.—Beginning with 

18 vintage year 2026, the Administrator shall make available 

19 for auction, pursuant to section 720, 10 percent of the 

20 emission allowances established for each year under sec21 tion 715(a), with the proceeds deposited into the Cleaner 

22 Air Community Fund established under section 104 of the 

23 Climate Pollution Standard and Community Investment 

24 Act of 2024. 


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1 ‘‘(i) NEGATIVE EMISSIONS ACTIVITIES.—The Admin2 istrator shall make available for auction, pursuant to sec3 tion 720, emission allowances established for each year 

4 under section 715(a), with the proceeds deposited into the 

5 Negative Emissions Activities Fund established under sec6 tion 105 of the Climate Pollution Standard and Commu7 nity Investment Act of 2024, in the following amounts: 

8 ‘‘(1) For compliance periods 1 and 2, 2.5 per9 cent of the emission allowances established for each 

10 year of such compliance periods under section 

11 715(a). 

12 ‘‘(2) For compliance periods 3 and 4, 5 percent 

13 of the emission allowances established for each year 

14 of such compliance periods under section 715(a). 

15 ‘‘(3) For compliance periods 5 and 6, 7.5 per16 cent of the emission allowances established for each 

17 year of such compliance periods under section 

18 715(a). 

19 ‘‘(4) For compliance periods 7 and 8, 10 per20 cent of the emission allowances established for each 

21 year of such compliance periods under section 

22 715(a). 

23 ‘‘(5) For compliance periods 9 and 10, 15 per24 cent of the emission allowances established for each 


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1 year of such compliance periods under section 

2 715(a). 

3 ‘‘(6) For each subsequent compliance period, 20 

4 percent of the emission allowances established for 

5 each year of such compliance period under section 

6 715(a). 

7 ‘‘(j) ENERGY INNOVATION FUND.—Beginning with 

8 vintage year 2026, the Administrator shall make available 

9 for auction, pursuant to section 720, 2.5 percent of the 

10 emission allowances established for each year under sec11 tion 715(a), with the proceeds deposited into the Energy 

12 Innovation Fund established under section 106 of the Cli13 mate Pollution Standard and Community Investment Act 

14 of 2024. 

15 ‘‘SEC. 723. OUTPUT-BASED DISTRIBUTIONS FOR ENERGY-IN16 TENSIVE, TRADE-EXPOSED INDUSTRIES. 

17 ‘‘(a) DESIGNATION OF ELIGIBLE INDUSTRIAL SEC18 TORS.— 

19 ‘‘(1) IN GENERAL.—The Administrator shall— 

20 ‘‘(A) designate (using the six-digit classi21 fication system of the North American Indus22 trial Classification System of 2002 or a super23 seding classification system) eligible industrial 

24 sectors based on the criteria described in para25 graph (3); and 


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1 ‘‘(B) maintain a list of such eligible indus2 trial sectors. 

3 ‘‘(2) ELIGIBLE INDUSTRIAL SECTOR LIST.— 

4 ‘‘(A) INITIAL LIST.—Not later than June 

5 30, 2025, the Administrator shall publish in the 

6 Federal Register a list of eligible industrial sec7 tors designated under this subsection. 

8 ‘‘(B) SUBSEQUENT LISTS.—Not later than 

9 June 30, 2031, and not less than every 6 years 

10 thereafter, the Administrator shall publish in 

11 the Federal Register an updated version of the 

12 list published under subparagraph (A). 

13 ‘‘(3) ELIGIBILITY CRITERIA.— 

14 ‘‘(A) IN GENERAL.—To be designated as 

15 an eligible industrial sector under this sub16 section, an industrial sector shall meet the cri17 teria in— 

18 ‘‘(i) both subparagraphs (B) and (C); 

19 or 

20 ‘‘(ii) subparagraph (D). 

21 ‘‘(B) ENERGY OR GREENHOUSE GAS IN22 TENSITY.—An industrial sector meets the cri23 teria in this subparagraph if the sector has— 

24 ‘‘(i) an energy intensity of at least 5 

25 percent, calculated by dividing— 


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1 ‘‘(I) the cost of purchased elec2 tricity and fuel of such sector; by 

3 ‘‘(II) the value of the shipments 

4 of such sector; or 

5 ‘‘(ii) a greenhouse gas intensity of at 

6 least 5 percent, calculated by dividing— 

7 ‘‘(I) the number of tons of green8 house gas emissions (including direct 

9 emissions from fuel combustion, proc10 ess emissions, and indirect emissions 

11 from the generation of electricity used 

12 to produce the output of the sector) of 

13 such sector, multiplied by 20; by 

14 ‘‘(II) the value of the shipments 

15 of such sector. 

16 ‘‘(C) TRADE INTENSITY.—An industrial 

17 sector meets the criteria in this subparagraph if 

18 the sector has a trade intensity of at least 15 

19 percent, calculated by dividing— 

20 ‘‘(i) the value of the imports and ex21 ports of such sector; by 

22 ‘‘(ii) the sum of the value of the ship23 ments and the value of imports of such 

24 sector. 


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1 ‘‘(D) VERY HIGH ENERGY OR GREEN2 HOUSE GAS INTENSITY.—An industrial sector 

3 meets the criteria in this subparagraph if the 

4 sector has— 

5 ‘‘(i) an energy intensity of at least 20 

6 percent, as calculated under subparagraph 

7 (B)(i); or 

8 ‘‘(ii) a greenhouse gas intensity of at 

9 least 20 percent, as calculated under sub10 paragraph (B)(ii). 

11 ‘‘(4) USE OF DATA.—When determining the eli12 gibility of an industrial sector, or a subgroup of enti13 ties within an industrial sector, under this sub14 section— 

15 ‘‘(A) the Administrator shall use the aver16 age annual data for the most recent 4 years for 

17 which such data are available; 

18 ‘‘(B) if data are unavailable for any indus19 trial sector at the six-digit classification level 

20 referred to in paragraph (1)(A), the Adminis21 trator may extrapolate the information nec22 essary to determine the eligibility of a sector 

23 from available data pertaining to a broader in24 dustrial category classified in— 


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1 ‘‘(i) the North American Industrial 

2 Classification System of 2002; or 

3 ‘‘(ii) a superseding classification sys4 tem; 

5 ‘‘(C) the Administrator may request any 

6 additional information, as determined necessary 

7 by the Administrator, from any owner or oper8 ator of an entity in a potentially eligible indus9 trial sector; and 

10 ‘‘(D) the Administrator shall seek informa11 tion from the owner or operator of an entity in 

12 a potentially eligible industrial sector that pro13 duces more than one product at a facility in 

14 order to attribute energy usage and greenhouse 

15 gas emissions associated with the production of 

16 each product type. 

17 ‘‘(5) LISTING OF SUBGROUPS AS AN ELIGIBLE

18 INDUSTRIAL SECTOR.— 

19 ‘‘(A) DESIGNATION OF SUBGROUPS.—The 

20 Administrator may, pursuant to paragraph (1), 

21 designate and list a subgroup of entities within 

22 an industrial sector as a separate eligible indus23 trial sector if the subgroup of entities meets the 

24 eligibility criteria in paragraph (3)(A) for des25 ignation as an eligible industrial sector. 


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1 ‘‘(B) DETERMINATION.—In determining 

2 under paragraph (3)(A) whether a subgroup of 

3 entities meets the criteria under subparagraphs 

4 (B) and (C) or (D) of such paragraph, the Ad5 ministrator shall consider— 

6 ‘‘(i) the energy intensity, greenhouse 

7 gas intensity, and trade intensity of the in8 dustrial sector represented by such sub9 group of entities; and 

10 ‘‘(ii) the products manufactured by 

11 the subgroup and not the industrial proc12 ess by which such products are manufac13 tured, except that the Administrator may 

14 determine a subgroup of entities that man15 ufacture a product primarily from virgin 

16 material to be listed as a separate eligible 

17 industrial sector from another subgroup of 

18 entities that manufacture the same product 

19 primarily from recycled material. 

20 ‘‘(6) INDIVIDUAL PETITION FOR ELIGIBILITY.— 

21 ‘‘(A) PETITION.—The owner or operator of 

22 an entity in an industrial sector may petition 

23 the Administrator to designate, pursuant to 

24 paragraph (5), one or more entities in such in25 dustrial sector as an eligible industrial sector. 


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1 ‘‘(B) FINAL ACTION.—Not later than 6 

2 months after the receipt of a petition under 

3 subparagraph (A), the Administrator shall take 

4 final action on such petition. 

5 ‘‘(7) SPECIAL CASES.— 

6 ‘‘(A) IRON AND STEEL SECTOR.—For pur7 poses of this section, the Administrator shall 

8 consider as being in different industrial sec9 tors— 

10 ‘‘(i) entities using integrated iron and 

11 steelmaking technologies (including coke 

12 ovens, blast furnaces, and other 

13 ironmaking technologies); and 

14 ‘‘(ii) entities using electric arc furnace 

15 technologies. 

16 ‘‘(B) METAL, SODA ASH, OR PHOSPHATE

17 PRODUCTION CLASSIFIED UNDER MORE THAN

18 ONE NAICS CODE.—For purposes of this sec19 tion, the Administrator— 

20 ‘‘(i) may not aggregate data for the 

21 beneficiation or other processing (including 

22 agglomeration) of metal ores, soda ash, or 

23 phosphate with subsequent steps in the 

24 process of metal, soda ash, or phosphate 

25 manufacturing; 


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1 ‘‘(ii) shall consider the beneficiation or 

2 other processing (including agglomeration) 

3 of metal ores, soda ash, or phosphate to be 

4 in separate industrial sectors from the 

5 metal, soda ash, or phosphate manufac6 turing sectors; and 

7 ‘‘(iii) shall treat industrial sectors that 

8 beneficiate or otherwise process (including 

9 agglomeration) metal ores, soda ash, or 

10 phosphate as ineligible to receive emission 

11 allowances under this section related to the 

12 activity of extracting metal ores, soda ash, 

13 or phosphate. 

14 ‘‘(C) PETROLEUM REFINING.—Industrial 

15 sectors that refine petroleum products may not 

16 be designated and listed as an eligible industrial 

17 sector under this section. 

18 ‘‘(b) OUTPUT-BASED ALLOCATION BENCHMARKS.— 

19 ‘‘(1) IN GENERAL.—The Administrator shall 

20 determine the average greenhouse gas emissions per 

21 unit of output for each eligible industrial sector des22 ignated and listed under subsection (a)(1) (referred 

23 to in this subsection as the ‘output-based allocation 

24 benchmark’ for such sector). 

25 ‘‘(2) CALCULATING BENCHMARK.— 


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1 ‘‘(A) IN GENERAL.—The Administrator 

2 shall calculate the output-based allocation 

3 benchmark for each eligible industrial sector 

4 based on the greenhouse gas emissions, includ5 ing direct emissions, process emissions, and in6 direct emissions, expressed in tons of carbon di7 oxide equivalent, per unit of output, for such el8 igible industrial sector using an average of the 

9 3 most recent years of the best available data 

10 for such eligible industrial sector. 

11 ‘‘(B) CALCULATING INDIRECT EMIS12 SIONS.—Each person selling electricity to the 

13 owner or operator of an entity in an eligible in14 dustrial sector shall— 

15 ‘‘(i) provide the owner or operator of 

16 the entity and the Administrator relevant 

17 greenhouse gas emissions data for such en18 tity; and 

19 ‘‘(ii) where it is not possible to deter20 mine the precise indirect greenhouse gas 

21 emissions for such entity, use the monthly 

22 average data reported by the Energy Infor23 mation Administration or collected and re24 ported for the electric utility serving the 


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1 entity to determine greenhouse gas emis2 sions. 

3 ‘‘(C) MULTIPLE ELIGIBLE INDUSTRIAL

4 SECTORS AT ONE FACILITY.—The Adminis5 trator shall seek information from the owner or 

6 operator of an entity in an eligible industrial 

7 sector that produces more than one product at 

8 a facility in order to attribute energy usage and 

9 greenhouse gas emissions associated with the 

10 production of each product type at such facility. 

11 ‘‘(3) DATA SOURCES.—For the purposes of this 

12 subsection, the Administrator— 

13 ‘‘(A) shall use data— 

14 ‘‘(i) reported to the Environmental 

15 Protection Agency; 

16 ‘‘(ii) reported to other Federal agen17 cies; and 

18 ‘‘(iii) from each owner or operator of 

19 an entity in an eligible industrial sector; 

20 and 

21 ‘‘(B) may require an owner or operator of 

22 an entity in an eligible industrial sector to pro23 vide such information as the Administrator 

24 finds necessary to determine the output-based 


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1 allocation benchmark for such eligible industrial 

2 sector. 

3 ‘‘(c) DISTRIBUTION OF EMISSION ALLOWANCES.— 

4 ‘‘(1) IN GENERAL.—For each vintage year, the 

5 Administrator shall— 

6 ‘‘(A) distribute pursuant to this section 

7 emission allowances allocated under section 

8 722(b), not later than October 31 of the pre9 ceding calendar year; and 

10 ‘‘(B) make such annual distributions to the 

11 owner or operator of each entity responsible for 

12 output in an eligible industrial sector listed 

13 under subsection (a) in the amount of emission 

14 allowances calculated under this subsection. 

15 ‘‘(2) ASSISTANCE FACTOR.—For the purpose of 

16 distributing emission allowances under this sub17 section, the Administrator shall use the following 

18 (referred to in this subsection as an ‘assistance fac19 tor’): 

20 ‘‘(A) For compliance period 1, 1.0. 

21 ‘‘(B) For compliance period 2, 0.9. 

22 ‘‘(C) For compliance period 3, 0.8. 

23 ‘‘(D) For compliance period 4, 0.7. 

24 ‘‘(E) For compliance period 5, 0.6. 

25 ‘‘(F) For compliance period 6, 0.5. 


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1 ‘‘(G) For compliance period 7, 0.4. 

2 ‘‘(H) For compliance period 8, 0.3. 

3 ‘‘(I) For compliance period 9, 0.2. 

4 ‘‘(J) For compliance period 10, 0.1. 

5 ‘‘(K) For each subsequent compliance pe6 riod, 0. 

7 ‘‘(3) AMOUNT OF EMISSION ALLOWANCES.— 

8 The amount of emission allowances to be distributed 

9 to the owner or operator of an entity in an eligible 

10 industrial sector shall be calculated by— 

11 ‘‘(A) the output-based allocation bench12 mark calculated pursuant to subsection (b) of 

13 the industrial sector of such entity; multiplied 

14 by 

15 ‘‘(B) the average annual output of such 

16 entity for the 2 years preceding the year of the 

17 distribution; multiplied by 

18 ‘‘(C) the appropriate assistance factor 

19 under paragraph (2). 

20 ‘‘(4) NEW ENTITIES.—Not later than 24 

21 months after the date of enactment of this title, the 

22 Administrator shall issue regulations governing the 

23 distribution of emission allowances for the first 4 

24 years of operation of a new entity in an eligible in25 dustrial sector. These regulations shall provide for— 


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1 ‘‘(A) the distribution of emission allow2 ances to such entities based on comparable enti3 ties in the same eligible industrial sector; and 

4 ‘‘(B) an adjustment in the third and 

5 fourth years of operation to reconcile the total 

6 amount of emission allowances received during 

7 the first 4 years of operation of the new entity 

8 to the amount the entity would have received 

9 during such years of operation had the appro10 priate data been available for the first and sec11 ond years of operation. 

12 ‘‘(d) TOTAL MAXIMUM DISTRIBUTION.—The Admin13 istrator may not distribute more emission allowances for 

14 any vintage year pursuant to this section than are allo15 cated for use pursuant to section 722(b) for that vintage 

16 year. For any vintage year for which the total emission 

17 allowances calculated for distribution pursuant to this sec18 tion would exceed the number of emission allowances allo19 cated pursuant to section 722(b), the Administrator shall 

20 reduce each entity’s distribution on a pro rata basis so 

21 that the total distribution of emission allowances under 

22 this section equals the number of emission allowances allo23 cated under section 722(b). 


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1 ‘‘(e) CESSATION OF QUALIFYING ACTIVITIES.—If, as 

2 determined by the Administrator, an entity is no longer 

3 in an eligible industrial sector— 

4 ‘‘(1) the Administrator may not distribute emis5 sion allowances to the owner or operator of such en6 tity under this section; and 

7 ‘‘(2) the owner or operator of such entity shall 

8 return to the Administrator— 

9 ‘‘(A) all emissions allowances that have 

10 been distributed under this section to the owner 

11 or operator for future vintage years; and 

12 ‘‘(B) a prorated amount of emission allow13 ances distributed under this section for the vin14 tage year in which the entity ceases to be in an 

15 eligible industrial sector. 

16 ‘‘SEC. 724. ASSISTANCE TO STATE, TERRITORIAL, AND TRIB17 AL GOVERNMENTS. 

18 ‘‘(a) IN GENERAL.—The Administrator shall annu19 ally distribute to States and Indian Tribes the proceeds 

20 of emission allowances auctioned pursuant to section 

21 722(d). Such proceeds shall be used by States and Indian 

22 Tribes to provide financial assistance and incentives in ac23 cordance with subsection (e) that support the reduction 

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1 ardous air pollutants, and emissions of greenhouse gases, 

2 or promote adaptation to climate change. 

3 ‘‘(b) REGULATIONS.—Not later than 24 months after 

4 the date of enactment of this section, the Administrator 

5 shall promulgate regulations to carry out this section, in6 cluding regulations— 

7 ‘‘(1) to ensure that each State and Indian Tribe 

8 provides financial assistance and incentives effi9 ciently and in accordance with this section and ap10 plicable Federal laws; 

11 ‘‘(2) to prevent waste, fraud, and abuse; 

12 ‘‘(3) to identify the forms of financial assist13 ance and incentives that States and Indian Tribes 

14 may provide; and 

15 ‘‘(4) to prescribe the form and content of re16 ports that States and Indian Tribes are required to 

17 submit under this section. 

18 ‘‘(c) INTENDED USE PLANS.— 

19 ‘‘(1) IN GENERAL.—After providing for public 

20 review and comment, each State and Indian Tribe 

21 receiving proceeds under this section shall annually 

22 prepare a plan that identifies the intended uses of 

23 such proceeds. 

24 ‘‘(2) CONTENTS.—An intended use plan pre25 pared under paragraph (1) shall include— 


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1 ‘‘(A) a list of the projects or programs in2 tended to be funded in the next fiscal year that 

3 begins after the date of the plan, including a 

4 description of each project or program; and 

5 ‘‘(B) additional information as determined 

6 appropriate by the Administrator. 

7 ‘‘(d) DISTRIBUTION AMONG STATES AND INDIAN

8 TRIBES.— 

9 ‘‘(1) IN GENERAL.—Not later than September 

10 30 of each calendar year, the Administrator shall, in 

11 accordance with this section, distribute the proceeds 

12 of emission allowances auctioned pursuant to section 

13 722(d) each year in accordance with the following 

14 formula: 

15 ‘‘(A) 25 percent shall be divided equally 

16 among the States. 

17 ‘‘(B) 50 percent of the emission allowances 

18 shall be distributed ratably among the States 

19 and Indian Tribes based on the population of 

20 each State and Indian Tribe, as contained in 

21 the most recent census data available from the 

22 Bureau of the Census at the time the Adminis23 trator calculates the formula for distribution. 

24 ‘‘(C) 25 percent shall be distributed rat25 ably among the States and Indian Tribes on the 


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1 basis of the energy consumption of each State 

2 and Indian Tribe as contained in the most re3 cent State Energy Data System report of the 

4 Energy Information Administration (or such al5 ternative reliable source as the Administrator 

6 may designate). 

7 ‘‘(2) MINIMUM AMOUNTS FOR INDIAN

8 TRIBES.—The Administrator shall ensure that not 

9 less than 5 percent of the total proceeds distributed 

10 to States and Indian Tribes in each calendar year is 

11 distributed to Indian Tribes. 

12 ‘‘(3) RECALCULATION OF DISTRIBUTION

13 AMOUNTS.—The Administrator shall recalculate the 

14 amounts to be distributed as determined by the for15 mula in paragraph (1) not less frequently than once 

16 every 5 years. 

17 ‘‘(e) USES.—The proceeds distributed to each State 

18 and Indian Tribe pursuant to this section may be used 

19 to provide grants, tax credits, production incentives, loans, 

20 loan guarantees, forgivable loans, interest rate buydowns, 

21 and other types of financial assistance and incentives that 

22 support or promote the following: 

23 ‘‘(1) Zero-emission electricity generation, in24 cluding— 


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1 ‘‘(A) research, development, and dem2 onstration of zero-emission electricity genera3 tion projects; and 

4 ‘‘(B) deployment of community-scale, low5 income, and distributed generation zero-emis6 sion electricity generation projects. 

7 ‘‘(2) Energy storage projects. 

8 ‘‘(3) Energy efficiency programs. 

9 ‘‘(4) Grid modernization, including support for 

10 integration of renewable energy resources and dis11 tributed generation, demand response, demand side 

12 management, and systems analysis. 

13 ‘‘(5) Deployment of zero-emission vehicles, in14 cluding light-, medium-, and heavy-duty vehicles. 

15 ‘‘(6) Charging, refueling, and grid infrastruc16 ture enhancement to support zero-emission vehicles. 

17 ‘‘(7) Design, construction, and maintenance to 

18 improve the resilience of existing and new infrastruc19 ture, including public health infrastructure, to the 

20 impacts of climate change, including wildfires, 

21 drought, flooding, and other extreme weather events. 

22 ‘‘(8) Electrification of residential and commer23 cial products that reduces demand for natural gas, 

24 heating oil, gasoline, diesel fuel, or propane. 


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1 ‘‘(9) Wildlife and natural resource adaptation, 

2 including— 

3 ‘‘(A) protection, maintenance, or restora4 tion of natural infrastructure such as wetlands, 

5 reefs, and barrier islands; 

6 ‘‘(B) conservation or maintenance of public 

7 lands; 

8 ‘‘(C) protection and restoration of water9 sheds; 

10 ‘‘(D) floodplain restoration and flood pro11 tection in densely populated urban areas; and 

12 ‘‘(E) mitigation of ocean-related climate 

13 change effects, including effects on bays, estu14 aries, populated barrier islands, and other 

15 ocean-related features. 

16 ‘‘(10) Sustainable agricultural programs, in17 cluding promotion of soil health. 

18 ‘‘(11) Food waste reduction programs. 

19 ‘‘(12) Sustainable forest management and land 

20 use programs. 

21 ‘‘(13) Reduction, capture, and use of methane 

22 from landfills and wastewater treatment facilities. 

23 ‘‘(14) Material conservation programs. 

24 ‘‘(15) Providing the non-Federal share of the 

25 cost of surface transportation capital projects that 


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1 support public transportation and transit programs, 

2 including support for bike lanes and pathways, pe3 destrian pathways, and bike share programs pro4 vided that not more than 10 percent of assistance 

5 distributed to each State and Indian Tribe pursuant 

6 to this section shall be used for such purposes. 

7 ‘‘(16) Construction, expansion, and retooling of 

8 facilities that manufacture components for clean en9 ergy technology systems. 

10 ‘‘(17) Installation, retrofit, or conversion of 

11 equipment to enable manufacturing facilities to man12 ufacture zero- or low-emission energy-intensive in13 dustrial products. 

14 ‘‘(18) Any other program, including a State 

15 program, that reduces air pollution, deploys clean 

16 energy or energy efficient technologies, or enhances 

17 the resilience of infrastructure, as determined by the 

18 Administrator. 

19 ‘‘(f) ADMINISTRATIVE COSTS.—Not more than 5 per20 cent of the proceeds distributed to States and Indian 

21 Tribes in any year may be used for the purposes of admin22 istrative expenses. 

23 ‘‘(g) MAINTENANCE OF EFFORT.—A State or Indian 

24 Tribe’s use of proceeds distributed by this section shall 

25 include assurances that the State or Indian Tribe will 


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1 maintain support for existing activities carried out by such 

2 State or Indian Tribe in future years at least at the levels 

3 of such support that is the average of such State or Indian 

4 Tribe’s support for such programs in the 3 years pre5 ceding the date of enactment of this section. The Adminis6 trator may waive the requirement in this subsection for 

7 the purpose of relieving fiscal burdens on States and In8 dian Tribes that have experienced a precipitous decline in 

9 financial resources. 

10 ‘‘(h) ASSISTANCE TO DISADVANTAGED AND RURAL

11 COMMUNITIES.—Not less than 50 percent of funding dis12 tributed to each State and Indian Tribe shall be used to 

13 provide assistance to activities located within disadvan14 taged or rural communities, as determined by the Admin15 istrator. 

16 ‘‘(i) REPORTING.—Each State and Indian Tribe shall 

17 submit to the Administrator a report every 2 years on the 

18 use of proceeds received under this section in accordance 

19 with such requirements as the Administrator may pre20 scribe. 

21 ‘‘(j) ENFORCEMENT.—If the Administrator deter22 mines that a State or Indian Tribe is not in compliance 

23 with this section, the Administrator may withhold pro24 ceeds that are otherwise to be distributed to such State 

25 or Indian Tribe. Proceeds withheld pursuant to this subVerDate Sep 11 2014 01:45 Aug 24, 2024 Jkt 049200 PO 00000 Frm 00075 Fmt 6652 Sfmt 6201 E:\BILLS\H9230.IH H9230

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1 section may be distributed among the remaining States 

2 and Indian Tribes in accordance with the formula deter3 mined pursuant to subsection (d). 

4 ‘‘SEC. 725. PROGRAM REVIEW. 

5 ‘‘The Administrator shall— 

6 ‘‘(1) in conjunction with the establishment of 

7 emission allowances under section 715(c)(2) for a 

8 compliance period, conduct a review of the imple9 mentation of this title; 

10 ‘‘(2) in conducting each such review, seek public 

11 comment; and 

12 ‘‘(3) upon completion of each such review, sub13 mit to Congress a report with the results of such re14 view, including recommendations, if any, for legisla15 tion or administrative actions appropriate to achieve 

16 the targets under section 711(a) and the reductions 

17 under section 711(b). 

18 ‘‘SEC. 726. ADVISORY BOARD. 

19 ‘‘(a) ESTABLISHMENT.—The Administrator shall es20 tablish an advisory board to provide independent advice 

21 and recommendations to the Environmental Protection 

22 Agency with respect to the administration of this title. 

23 ‘‘(b) MEMBERSHIP.—The advisory board shall be 

24 composed of members representing— 


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1 ‘‘(1) community-based organizations, including 

2 such organizations that carry out initiatives relating 

3 to environmental justice; 

4 ‘‘(2) State governments; 

5 ‘‘(3) Tribal Governments; 

6 ‘‘(4) local governments; 

7 ‘‘(5) labor organizations; 

8 ‘‘(6) nongovernmental and environmental orga9 nizations; 

10 ‘‘(7) agricultural organizations; 

11 ‘‘(8) private sector organizations, including rep12 resentatives of industries and businesses required to 

13 comply with the requirements of this title; and 

14 ‘‘(9) experts in the field of— 

15 ‘‘(A) socioeconomic analysis; 

16 ‘‘(B) health and environmental effects; 

17 ‘‘(C) pollution monitoring and exposure 

18 evaluation; 

19 ‘‘(D) environmental law and civil rights 

20 law; 

21 ‘‘(E) environmental health science re22 search; or 

23 ‘‘(F) agricultural science research. 


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1 ‘‘(c) FACA.—Chapter 10 of title 5, United States 

2 Code (commonly known as the Federal Advisory Com3 mittee Act), shall apply to the advisory board. 

4 ‘‘PART C—EMISSIONS REDUCTIONS IN EVERY 

5 COMMUNITY 

6 ‘‘SEC. 731. DEFINITIONS. 

7 ‘‘In this part: 

8 ‘‘(a) CLEANER AIR COMMUNITY.—The term ‘Cleaner 

9 Air Community’ means a community designated as a 

10 Cleaner Air Community under section 733. 

11 ‘‘(b) CLEANER AIR COMMUNITY FUND.—The term 

12 ‘Cleaner Air Community Fund’ means the fund estab13 lished under section 104 of the Climate Pollution Stand14 ard and Community Investment Act of 2024. 

15 ‘‘(c) COMMUNITY.—The term ‘community’ means a 

16 county, municipality, town, township, village, parish, bor17 ough, or other unit of general government below the State 

18 level. 

19 ‘‘SEC. 732. USE OF FUNDS FROM THE CLEANER AIR COMMU20 NITY FUND. 

21 ‘‘(a) IN GENERAL.— 

22 ‘‘(1) ASSISTANCE.—Beginning in 2027 and 

23 each year thereafter, the Administrator shall provide 

24 assistance pursuant to this section using amounts 

25 made available in the Cleaner Air Community Fund. 


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1 ‘‘(2) PRIORITY.—In providing assistance pursu2 ant to this section using amounts made available in 

3 the Cleaner Air Community Fund, the Adminis4 trator shall prioritize providing assistance to commu5 nities designated as a Cleaner Air Community under 

6 section 733. 

7 ‘‘(b) ENVIRONMENTAL AND CLIMATE JUSTICE

8 BLOCK GRANTS.—The Administrator is authorized to use 

9 amounts made available in the Cleaner Air Community 

10 Fund to award grants and provide technical assistance 

11 under section 138. 

12 ‘‘(c) ENHANCED AIR POLLUTION MONITORING.— 

13 ‘‘(1) IN GENERAL.—The Administrator is au14 thorized to award grants using amounts made avail15 able in the Cleaner Air Community Fund to local 

16 and State governments, Indian Tribes, air pollution 

17 control agencies, and other public or nonprofit pri18 vate agencies, institutions, and organizations with 

19 appropriate technical capacity to support additional 

20 emissions monitoring in disadvantaged communities, 

21 as determined by the Administrator. 

22 ‘‘(2) APPLICATIONS.—To be eligible to receive a 

23 grant under this subsection, an entity described in 

24 paragraph (1) shall submit an application to the Ad25 ministrator at such time, in such form, and conVerDate Sep 11 2014 01:45 Aug 24, 2024 Jkt 049200 PO 00000 Frm 00079 Fmt 6652 Sfmt 6201 E:\BILLS\H9230.IH H9230

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1 taining such information and assurances as the Ad2 ministrator may require. 

3 ‘‘(3) PRIORITIZATION OF USE OF FUNDS.—The 

4 Administrator shall prioritize awarding grants under 

5 this subsection to entities that propose, in an appli6 cation submitted under paragraph (2), to use grants 

7 to— 

8 ‘‘(A) improve the reporting, monitoring, 

9 and enforcement of the requirements of this 

10 title; 

11 ‘‘(B) improve air quality monitoring, in12 cluding by the use of hyperlocal air monitoring 

13 equipment and techniques, in locations deter14 mined by the Administrator to have insufficient 

15 monitoring equipment and capabilities; or 

16 ‘‘(C) inform management decisions, such 

17 as the placement or relocation of stationary air 

18 pollution monitors, transportation or land use 

19 planning, investments in mitigating air pollu20 tion sources, and other planning decisions, by 

21 relevant local, State, and Tribal governments. 

22 ‘‘(d) DEVELOPMENT OF EMISSIONS REDUCTION

23 PLANS.— 

24 ‘‘(1) IN GENERAL.—The Administrator is au25 thorized to award grants and provide technical asVerDate Sep 11 2014 01:45 Aug 24, 2024 Jkt 049200 PO 00000 Frm 00080 Fmt 6652 Sfmt 6201 E:\BILLS\H9230.IH H9230

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1 sistance using amounts made available in the Clean2 er Air Community Fund to local and State govern3 ments, Indian Tribes, air pollution control agencies, 

4 and other public or nonprofit private agencies, insti5 tutions, and organizations that are located in a 

6 Cleaner Air Community to develop multiyear plans 

7 to reduce air pollution in such community. 

8 ‘‘(2) PLAN CONTENTS.—A plan developed 

9 under paragraph (1) shall include— 

10 ‘‘(A) a proposal to develop effective and 

11 practical processes, methods, and devices to re12 duce, prevent, or control air pollution, including 

13 greenhouse gas emissions, within a Cleaner Air 

14 Community; and 

15 ‘‘(B) a description of the expected use of 

16 funds to develop such proposals. 

17 ‘‘(3) COMMUNITY ENGAGEMENT.—Any entity 

18 receiving a grant to develop a multi-year plan under 

19 paragraph (1) shall demonstrate sufficient commu20 nity engagement with local residents in the develop21 ment of a plan. 

22 ‘‘(e) IMPLEMENTATION OF EMISSIONS REDUCTION

23 PLANS.—The Administrator is authorized to award grants 

24 using amounts made available in the Cleaner Air Commu25 nity Fund to local and State governments, Indian Tribes, 


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1 air pollution control agencies, and other public or non2 profit private agencies, institutions, and organizations 

3 that received a grant and developed a plan under sub4 section (d)— 

5 ‘‘(1) if the Administrator determines such enti6 ty demonstrated sufficient community engagement 

7 with local residents in the development of the plan; 

8 and 

9 ‘‘(2) for purposes of implementing the plan. 

10 ‘‘(f) COMMUNITY-BASED HEALTH SERVICES IN

11 CLEANER AIR COMMUNITIES.—The Administrator, in 

12 consultation with the Secretary of Health and Human 

13 Services, is authorized to award grants using amounts 

14 made available in the Cleaner Air Community Fund to 

15 local and State governments, Indian Tribes, air pollution 

16 control agencies, and other public or nonprofit private 

17 agencies, institutions, and organizations, which shall be 

18 used to— 

19 ‘‘(1) support community-based health centers, 

20 health monitoring, and other health care services lo21 cated in a Cleaner Air Community; and 

22 ‘‘(2) address the health impacts of individuals 

23 who reside or work in a Cleaner Air Community. 


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1 ‘‘SEC. 733. CLEANER AIR COMMUNITIES. 

2 ‘‘(a) DESIGNATION OF CLEANER AIR COMMU3 NITIES.—Beginning after compliance period 1, the Admin4 istrator shall designate, for a period of 5 years, commu5 nities as Cleaner Air Communities in accordance with this 

6 section. 

7 ‘‘(b) ELIGIBILITY.—A community shall be eligible to 

8 be designated as a Cleaner Air Community under sub9 section (a) if the community, or a census tract within such 

10 community, experiences an increase of emissions of any 

11 greenhouse gas, hazardous air pollutant, or criteria air 

12 pollutant on an annual basis over the average annual 

13 quantity of emissions of the pollutant during the previous 

14 compliance period. 

15 ‘‘(c) PETITION FOR DESIGNATION.—Any person may 

16 petition the Administrator to designate a community as 

17 a Cleaner Air Community under subsection (a). 

18 ‘‘(d) CONSIDERATION OF PETITION.—The Adminis19 trator shall review a petition under subsection (c) and 

20 make a determination on such petition not later than 1 

21 year after receiving such petition. 

22 ‘‘(e) REDESIGNATION OF CLEANER AIR COMMU23 NITIES.—Not later than 4 years after a community is des24 ignated as a Cleaner Air Community, the Administrator 

25 shall determine whether to extend the designation of the 

26 community as a Cleaner Air Community for another 5- 


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1 year period beginning at the end of the last year during 

2 which that community experienced an increase of pollut3 ants as described in subsection (b). 

4 ‘‘SEC. 734. ANNUAL REPORT TO CONGRESS. 

5 ‘‘Beginning in 2027, not later than 180 days after 

6 the end of each year, the Administrator shall submit to 

7 Congress a report for the previous year, which shall in8 clude— 

9 ‘‘(1) a description of each grant awarded and 

10 the technical assistance provided under this part or 

11 section 138 pursuant to this part; 

12 ‘‘(2) the amount of funding that remains avail13 able in the Cleaner Air Community Fund; 

14 ‘‘(3) an assessment of the air quality moni15 toring needs of disadvantaged communities, as deter16 mined by the Administrator, including a determina17 tion whether additional air quality monitoring is nec18 essary to determine the eligibility of communities to 

19 be designated as Cleaner Air Communities; and 

20 ‘‘(4) an assessment of the air quality and public 

21 health of Cleaner Air Communities and efforts to re22 duce air pollution in such communities. 


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1 ‘‘SEC. 735. REGULATIONS. 

2 ‘‘The Administrator shall issue any regulations nec3 essary to implement this part not later than 36 months 

4 after the date of enactment of this part. 

5 ‘‘PART D—NEGATIVE EMISSIONS ACTIVITIES 

6 ‘‘SEC. 741. DEFINITIONS. 

7 ‘‘In this part: 

8 ‘‘(1) BEGINNING PRODUCER.—The term ‘begin9 ning producer’ means an individual that— 

10 ‘‘(A)(i) has not operated a farm or ranch; 

11 or 

12 ‘‘(ii) has operated a farm or ranch for not 

13 more than 10 years; and 

14 ‘‘(B) meets such other criteria as the Ad15 ministrator, in consultation with the Secretary, 

16 may establish. 

17 ‘‘(2) ELIGIBLE CARBON REMOVAL TECH18 NOLOGY.— 

19 ‘‘(A) IN GENERAL.—The term ‘eligible car20 bon removal technology’ means any equipment, 

21 technique, or technology, placed into service 

22 after January 1, 2023, that— 

23 ‘‘(i) captures carbon dioxide directly 

24 from ambient air or seawater, as deter25 mined appropriate by the Administrator; 

26 and 


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1 ‘‘(ii) permanently stores such cap2 tured carbon dioxide— 

3 ‘‘(I) in a subsurface geologic for4 mation or in materials, including 

5 building materials and mineralized 

6 carbon materials; or 

7 ‘‘(II) using other permanent stor8 age methods, as determined by the 

9 Administrator. 

10 ‘‘(B) EXCLUSION.—The term ‘eligible car11 bon removal technology’ does not include any 

12 equipment, technique, or technology that— 

13 ‘‘(i) captures carbon dioxide which is 

14 deliberately released from naturally occur15 ring subsurface springs; or 

16 ‘‘(ii) stores or uses carbon dioxide for 

17 enhanced oil recovery. 

18 ‘‘(3) ELIGIBLE LAND.— 

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

20 land’ means land on which agricultural com21 modities, livestock, or forest-related products 

22 are produced. 

23 ‘‘(B) INCLUSIONS.—The term ‘eligible 

24 land’ includes the following: 

25 ‘‘(i) Cropland. 


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1 ‘‘(ii) Grassland. 

2 ‘‘(iii) Rangeland. 

3 ‘‘(iv) Pasture land. 

4 ‘‘(v) Nonindustrial private forest land. 

5 ‘‘(vi) Other agricultural land (includ6 ing cropped woodland, marshes, environ7 mentally sensitive areas, and agricultural 

8 land used for the production of livestock) 

9 on which identified or expected resource 

10 concerns related to agricultural production 

11 could be addressed through a contract 

12 under the Program as determined by the 

13 Administrator, in consultation with the 

14 Secretary. 

15 ‘‘(4) ELIGIBLE PRACTICE.—The term ‘eligible 

16 practice’ means an activity included on the list es17 tablished under section 744(a). 

18 ‘‘(5) HIGH-QUALITY PROJECT.—The term 

19 ‘high-quality project’ means carrying out one or 

20 more eligible practices, which result in (as deter21 mined by the Administrator) verifiable, permanent, 

22 and additional reductions or avoidance of greenhouse 

23 gas emissions or sequestration of greenhouse gases. 


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1 ‘‘(6) PAYMENT.—The term ‘payment’ means fi2 nancial assistance provided to a producer for per3 forming one or more practices under this part. 

4 ‘‘(7) PRODUCER.—The term ‘producer’ means 

5 an individual or entity capable of carrying out an eli6 gible practice. 

7 ‘‘(8) PROGRAM.—The term ‘Program’ means 

8 the program established under section 743. 

9 ‘‘(9) SECRETARY.—The term ‘Secretary’ means 

10 the Secretary of the Department of Agriculture. 

11 ‘‘(10) SOCIALLY DISADVANTAGED PRODUCER.— 

12 The term ‘socially disadvantaged producer’ means a 

13 farmer or rancher who is a member of a group 

14 whose members have been subjected to racial or eth15 nic prejudice because of their identity as members of 

16 the group without regard to their individual quali17 ties. 

18 ‘‘SEC. 742. PURPOSES. 

19 ‘‘The purposes of the Program are to incentivize ac20 tivities that result in reduction or avoidance of greenhouse 

21 gas emissions, or sequestration of greenhouse gases, and 

22 to optimize environmental benefits, by— 

23 ‘‘(1) utilizing methodologies, in consultation 

24 with the Secretary for agricultural production and 

25 forest management practices on eligible land, for 


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1 each eligible practice type for quantifying and 

2 verifying potential and actual reduction and avoid3 ance of greenhouse emissions and sequestration of 

4 greenhouse gases; 

5 ‘‘(2) avoiding, to the maximum extent prac6 ticable, the need for regulatory programs by assist7 ing producers implementing eligible practices on eli8 gible land in reducing or avoiding greenhouse gas 

9 emissions, or sequestering of greenhouse gases in 

10 order to achieve economy-wide greenhouse gas emis11 sions reduction targets pursuant to section 702; 

12 ‘‘(3) avoiding or minimizing, to the maximum 

13 extent practicable, adverse effects on human health 

14 or the environment resulting from the implementa15 tion of practices under the Program; 

16 ‘‘(4) assisting producers implementing eligible 

17 practices on eligible land with adaptation to chang18 ing climatic conditions and mitigating against in19 creasing weather volatility and drought; and 

20 ‘‘(5) enabling the participation of beginning 

21 producers and socially disadvantaged producers in 

22 the Program. 

23 ‘‘SEC. 743. ESTABLISHMENT. 

24 ‘‘(a) IN GENERAL.—The Administrator, in consulta25 tion with the Secretary with respect to agricultural proVerDate Sep 11 2014 01:45 Aug 24, 2024 Jkt 049200 PO 00000 Frm 00089 Fmt 6652 Sfmt 6201 E:\BILLS\H9230.IH H9230

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1 duction and forest management practices on eligible land, 

2 shall establish a program to enter into contracts with pro3 ducers to carry out practices using amounts made avail4 able in the Negative Emissions Activities Fund. 

5 ‘‘(b) REGULATIONS.—Not later than 2 years after 

6 the date of enactment of this part, the Administrator shall 

7 promulgate regulations to carry out this part. 

8 ‘‘SEC. 744. ELIGIBLE PRACTICES. 

9 ‘‘(a) LIST OF ELIGIBLE PRACTICES.—— 

10 ‘‘(1) LISTING.—The Administrator, in consulta11 tion with the Secretary with respect to agricultural 

12 production and forest management activities on eli13 gible land, shall establish, and may periodically re14 vise, a list of activities that are eligible practices. 

15 ‘‘(2) REQUIREMENTS.—The Administrator may 

16 include an activity as an eligible practice on the list 

17 established under paragraph (1) if the Adminis18 trator, in consultation with the Secretary with re19 spect to agricultural production and forest manage20 ment practices on eligible land, determines the activ21 ity can reduce or avoid greenhouse gas emissions or 

22 sequester greenhouse gases, consistent with the pur23 poses described in section 742. 

24 ‘‘(3) MODIFICATIONS TO LIST.—The Adminis25 trator may at any time, by rule, add or remove an 


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1 activity to or from the list of eligible practices in ac2 cordance with paragraph (2). 

3 ‘‘(b) ESTABLISHMENT OF INITIAL LIST.—In estab4 lishing the initial list under subsection (a), the Adminis5 trator, in consultation with the Secretary with respect to 

6 agricultural production and forest management practices 

7 on eligible land, shall give priority to consideration of ac8 tivities for which there are well developed methodologies 

9 for quantifying the reduction or avoidance of greenhouse 

10 gas emissions or sequestration of greenhouse gases with 

11 such modifications as the Administrator considers appro12 priate. At a minimum, the initial list prepared under this 

13 section shall include the following activities that reduce or 

14 avoid greenhouse gas emissions or sequester greenhouse 

15 gases: 

16 ‘‘(1) Agricultural, grassland, and rangeland se17 questration and management activities on eligible 

18 land. 

19 ‘‘(2) Changes in carbon stocks attributed to 

20 land use change and forestry activities on eligible 

21 land. 

22 ‘‘(3) Manure management and disposal on eligi23 ble land. 

24 ‘‘(4) Livestock management on eligible land. 

25 ‘‘(5) Eligible carbon removal technologies. 


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1 ‘‘(c) METHODOLOGIES.— 

2 ‘‘(1) ESTABLISHMENT.—The Administrator, in 

3 consultation with the Secretary with respect to agri4 cultural production and forest management practices 

5 on eligible land, shall establish for each type of eligi6 ble practice a standardized methodology for deter7 mining the quantity of reduction or avoidance of 

8 greenhouse gas emissions, or sequestration of green9 house gases, expected to be achieved by the type of 

10 eligible practice, including protocols for monitoring, 

11 reporting, and verifying performance, and account12 ing for uncertainty. 

13 ‘‘(2) PREEXISTING METHODOLOGIES.—In es14 tablishing a standard methodology for each type of 

15 eligible practice under paragraph (1), the Adminis16 trator shall consider basing such standard method17 ology on methodologies that exist as of the date of 

18 enactment of this part. 

19 ‘‘SEC. 745. APPLICATIONS. 

20 ‘‘(a) IN GENERAL.—The Administrator may enter 

21 into a contract with a producer under section 746 if— 

22 ‘‘(1) the producer submits to the Administrator 

23 an application that proposes to carry out one or 

24 more eligible practices; and 


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1 ‘‘(2) the Administrator approves such applica2 tion under this section. 

3 ‘‘(b) EVALUATION CRITERIA.—The Administrator 

4 shall develop criteria for evaluating applications submitted 

5 under subsection (a), which shall include consideration of 

6 the potential quantity and cost effectiveness of reduction 

7 or avoidance of greenhouse gas emissions, or sequestration 

8 of greenhouse gases, from the proposed eligible practices. 

9 ‘‘(c) PRIORITIZATION OF APPLICATIONS.—In evalu10 ating applications submitted under subsection (a), the Ad11 ministrator shall prioritize approving applications based 

12 on— 

13 ‘‘(1) the anticipated quantity of reduction or 

14 avoidance of greenhouse gas emissions, or sequestra15 tion of greenhouse gases from the proposed eligible 

16 practices; 

17 ‘‘(2) the cost to carry out the proposed eligible 

18 practices relative to other, similar eligible practices; 

19 ‘‘(3) how effectively and comprehensively the 

20 proposed eligible practices are expected to achieve 

21 the reduction or avoidance of greenhouse gas emis22 sions, or sequestration of greenhouse gases on eligi23 ble land; 

24 ‘‘(4) the inclusion of high-quality projects; and 


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1 ‘‘(5) how well the proposed eligible practices 

2 fulfill the purposes of the Program. 

3 ‘‘(d) GROUPING OF APPLICATIONS.—To the greatest 

4 extent practicable, the Administrator shall evaluate appli5 cations that propose to carry out the same or similar eligi6 ble practices together. 

7 ‘‘(e) GEOGRAPHIC SCOPE.—The Administrator shall, 

8 to the extent practicable, seek to approve applications 

9 from a diversity of geographic regions of the United 

10 States, taking into account factors such as soil type, crop11 ping history, and water availability. 

12 ‘‘(f) SET ASIDE FOR USE OF ELIGIBLE CARBON RE13 MOVAL TECHNOLOGY.—The Administrator shall ensure 

14 that, each year, not less than 20 percent of the amount 

15 provided under contracts entered into under section 746 

16 be provided to carry out eligible practices that use eligible 

17 carbon removal technology. 

18 ‘‘(g) REVERSE AUCTION.— 

19 ‘‘(1) IN GENERAL.—The Administrator may ap20 prove applications submitted under subsection (a) 

21 using a reverse auction mechanism to promote the 

22 most cost effective means of achieving the antici23 pated reduction or avoidance of greenhouse gas 

24 emissions, or sequestration of greenhouse gases, pur25 suant to contracts entered into under section 746. 


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1 ‘‘(2) MULTIFACTOR BIDDING.—When using a 

2 reverse auction mechanism under paragraph (1), the 

3 Administrator may incorporate noncost factors into 

4 the auction system, and prioritize approving applica5 tions that propose to carry out eligible practices 

6 that— 

7 ‘‘(A) maximize the net greenhouse gas 

8 emissions reductions; 

9 ‘‘(B) minimize the amount of greenhouse 

10 gas emissions released by carrying out the eligi11 ble practices; 

12 ‘‘(C) would increase the diversity of types 

13 of eligible practices carried out pursuant to sec14 tion 746; 

15 ‘‘(D) would be carried out in geographi16 cally diverse areas; 

17 ‘‘(E) support economic development or job 

18 creation in disadvantaged or rural communities, 

19 as determined by the Administrator; 

20 ‘‘(F) include robust public engagement and 

21 community benefits commitments; 

22 ‘‘(G) provide benefits to beginning pro23 ducers and socially disadvantaged producers; 

24 and 

25 ‘‘(H) include high-quality projects. 


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1 ‘‘(h) THIRD-PARTY AGGREGATORS.—The Adminis2 trator may, when evaluating applications under this sec3 tion, approve applications from entities that aggregate eli4 gible practices from multiple producers. 

5 ‘‘SEC. 746. CONTRACTS AND PAYMENTS. 

6 ‘‘(a) CONTRACTS.—After approving an application 

7 under section 745, the Administrator shall seek to enter 

8 into a contract with the producer that submitted the appli9 cation. 

10 ‘‘(b) REQUIRED PROVISIONS.—A contract entered 

11 into under subsection (a) shall— 

12 ‘‘(1) require the producer to develop and imple13 ment a program plan which— 

14 ‘‘(A) shall be approved by the Adminis15 trator, and may include such conditions the Ad16 ministrator may require; and— 

17 ‘‘(B) shall provide for how the producer 

18 will— 

19 ‘‘(i) carry out the eligible practices 

20 proposed in the application; 

21 ‘‘(ii) manage, maintain, and improve 

22 such eligible practices for the duration of 

23 the contract; 

24 ‘‘(iii) provide for the verification of 

25 the actual quantity of greenhouse gas 


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1 emissions reduced or avoided, or green2 house gases sequestered, from such eligible 

3 practices in accordance with section 

4 747(b); and 

5 ‘‘(iv) adequately mitigate environ6 mental impacts (including impacts on bio7 diversity, land use, and water quality) with 

8 carrying out such eligible practices; 

9 ‘‘(2) require the producer to maintain and sup10 ply information required by the Administrator to de11 termine compliance with, and the effectiveness of, 

12 the program plan; 

13 ‘‘(3) if the producer transfers the rights, title, 

14 and interests in eligible land subject to the contract 

15 (unless the transferee enters into an agreement with 

16 the Administrator to assume all obligations of the 

17 contract), require the producer to refund all pay18 ments received under the Program, as determined by 

19 the Administrator; 

20 ‘‘(4) prohibit the producer from using payments 

21 made under subsection (e) to conduct any activities 

22 that would undermine the purposes of the Program; 

23 ‘‘(5) include a provision that a producer may 

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1 cumstances beyond the control of the producer, in2 cluding a disaster or other similar condition, as de3 termined by the Administrator; 

4 ‘‘(6) provide for annual payments to the pro5 ducer in accordance with subsection (e); and 

6 ‘‘(7) include any additional provisions the Ad7 ministrator determines are necessary to carry out 

8 the Program. 

9 ‘‘(c) RENEWAL.—If the Administrator determines 

10 that further implementation of a producer’s program plan 

11 would continue to result in cost-effective reduction or 

12 avoidance of greenhouse gas emissions, or sequestration 

13 of greenhouse gases, the Administrator may seek to renew 

14 the existing contract in the last year of the contract term 

15 if the producer— 

16 ‘‘(1) demonstrates compliance with the provi17 sions of the existing contract; and 

18 ‘‘(2) agrees to adopt and continue to integrate 

19 new or improved eligible practices, as determined by 

20 the Administrator. 

21 ‘‘(d) TERM OF CONTRACTS.— 

22 ‘‘(1) IN GENERAL.—A contract entered into or 

23 renewed under this section shall be for a term of— 

24 ‘‘(A) not less than 5 years; and 

25 ‘‘(B) not more than 20 years. 


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1 ‘‘(2) FACTORS FOR DETERMINING CONTRACT

2 DURATION.—The Administrator shall determine the 

3 term of a contract entered into or renewed under 

4 this section based on— 

5 ‘‘(A) the eligible practices included in the 

6 producer’s program plan; 

7 ‘‘(B) the opportunities for greenhouse gas 

8 emission reduction or avoidance, or sequestra9 tion of greenhouse gases, from such eligible 

10 practices; and 

11 ‘‘(C) other factors determined appropriate 

12 by the Administrator. 

13 ‘‘(e) ANNUAL PAYMENTS.— 

14 ‘‘(1) IN GENERAL.—The Administrator shall 

15 provide annual payments to a producer with which 

16 the Administrator enters into or renews a contract 

17 under this section using amounts made available in 

18 the Negative Emissions Activities Fund. 

19 ‘‘(2) AMOUNT.— 

20 ‘‘(A) PRIMARY CONSIDERATION.—The Ad21 ministrator shall determine the amount of an 

22 annual payment under paragraph (1) based 

23 on— 

24 ‘‘(i) the expected quantity of green25 house gas emission reduction or avoidance, 


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1 or sequestration of greenhouse gases, re2 sulting from the eligible practices included 

3 in the program plan; 

4 ‘‘(ii) the amount and scale of high5 quality projects included in the program 

6 plan; and 

7 ‘‘(iii) if applicable, the results of a re8 verse auction carried out pursuant to sec9 tion 745(g). 

10 ‘‘(B) ADDITIONAL CONSIDERATIONS.—In 

11 determining the amount of an annual payment 

12 under this paragraph, the Administrator may 

13 also consider— 

14 ‘‘(i) costs incurred by the producer as15 sociated with developing and implementing 

16 the program plan, including costs associ17 ated with plans, designs, materials, equip18 ment, and labor; 

19 ‘‘(ii) income forgone by the producer 

20 from eligible land; 

21 ‘‘(iii) the extent to which compensa22 tion would ensure long-term continued 

23 maintenance, management, and improve24 ment of one or more practices included in 

25 the program plan; and 


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1 ‘‘(iv) other factors as determined ap2 propriate by the Administrator. 

3 ‘‘(C) ADDITIONAL PAYMENTS FOR MAINTE4 NANCE OF PROGRAM PLANS.—If the Adminis5 trator and a producer agree to renew a contract 

6 pursuant to subsection (c), the Administrator 

7 may provide the producer a separate payment 

8 for purposes of maintaining the previously im9 plemented program plan. Notwithstanding sub10 paragraph (A), such separate payment may be 

11 based on actual measured and verified green12 house gas emission reduction or avoidance, or 

13 sequestration of greenhouse gases. 

14 ‘‘(3) ADVANCE PAYMENTS.— 

15 ‘‘(A) IN GENERAL.—The Administrator 

16 may, if requested by a producer, provide a por17 tion of an annual payment in advance for costs 

18 related to purchasing materials, equipment, or 

19 contracting in order to implement one or more 

20 eligible practices included in the producer’s pro21 gram plan. 

22 ‘‘(B) RETURN OF FUNDS.—If a payment 

23 provided in advance under subparagraph (A) is 

24 not expended during the 90-day period begin25 ning on the date of receipt of the payment, the 


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1 remaining amounts of such payment shall be re2 turned to the Negative Emissions Activities 

3 Fund within a reasonable timeframe, as deter4 mined by the Administrator. 

5 ‘‘(C) NOTIFICATION AND DOCUMENTA6 TION.—The Administrator shall— 

7 ‘‘(i) notify each producer at the time 

8 of enrollment in the Program of the option 

9 to receive advance payments; and 

10 ‘‘(ii) document each request to receive 

11 advance payments. 

12 ‘‘(4) FINANCIAL ASSISTANCE FROM OTHER

13 SOURCES.— 

14 ‘‘(A) IN GENERAL.—Any payments re15 ceived by a producer from a State, private orga16 nization, or person for the implementation of 

17 one or more eligible practices on eligible land 

18 shall be in addition to the payments provided to 

19 the producer pursuant to this subsection. 

20 ‘‘(B) PROHIBITION ON DOUBLE COUNT21 ING.—The Administrator may require, as a 

22 condition of the contract, that a producer who 

23 receives payments for implementing eligible 

24 practices under this section may not also use 

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1 nism for another greenhouse gas emissions 

2 management program, including any foreign, 

3 Federal, State, local, or voluntary private 

4 greenhouse gas emissions management pro5 gram, if such use would undermine the goals of 

6 section 702. 

7 ‘‘(5) LIMITATION OF PAYMENTS.—The Admin8 istrator may not make payments under this section 

9 in excess of the amounts made available in the Neg10 ative Emissions Activities Fund. If the aggregate of 

11 such payments in any calendar year will exceed such 

12 amount, the Administrator shall reduce the amount 

13 of payments to the extent necessary to comply with 

14 the requirement in the first sentence. 

15 ‘‘(f) MODIFICATION OR TERMINATION OF CON16 TRACTS.— 

17 ‘‘(1) VOLUNTARY MODIFICATION OR TERMI18 NATION.—The Administrator may modify or termi19 nate a contract entered into or renewed with a pro20 ducer under this section if— 

21 ‘‘(A) the producer agrees to the modifica22 tion or termination; and 

23 ‘‘(B) the Administrator determines that 

24 the modification or termination is in the public 

25 interest. 


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1 ‘‘(2) INVOLUNTARY TERMINATION.—The Ad2 ministrator may terminate a contract under the pro3 gram if the Administrator determines that the pro4 ducer violated the contract. 

5 ‘‘(3) REPAYMENT.—If a contract is terminated, 

6 the Administrator may— 

7 ‘‘(A) allow the producer to retain payments 

8 already received under the contract; or 

9 ‘‘(B) require repayment, in whole or in 

10 part, of payments received. 

11 ‘‘(g) ENFORCEMENT OF TERMS AND CONDITIONS.— 

12 ‘‘(1) TERMINATION.—Notwithstanding sub13 section (f), if the Administrator determines that a 

14 producer violated a term or condition of a contract 

15 entered into or renewed under this section, and such 

16 violation warrants termination of the contract (as 

17 determined by the Administrator), the producer— 

18 ‘‘(A) may not receive payments under the 

19 contract; and 

20 ‘‘(B) shall refund to the Administrator all 

21 or a portion of the payments received by the 

22 owner or operator under the contract, including 

23 any interest on the payments, as determined by 

24 the Administrator. 


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1 ‘‘(2) OTHER PENALTIES.—Notwithstanding 

2 subsection (f), if the Administrator determines that 

3 a producer violated a term or condition of a contract 

4 entered into or renewed under this section, but such 

5 violation does not warrant termination of the con6 tract, the producer shall refund to the Adminis7 trator, or accept adjustments to, the payments pro8 vided to the owner or operator, as the Administrator 

9 determines to be appropriate. 

10 ‘‘SEC. 747. DUTIES OF THE ADMINISTRATOR. 

11 ‘‘(a) TECHNICAL ASSISTANCE.— 

12 ‘‘(1) IN GENERAL.—To the extent appropriate, 

13 the Administrator, in consultation with the Sec14 retary with respect to agricultural production and 

15 forest management practices on eligible land, shall 

16 assist producers with implementing program plans 

17 by providing to producers technical assistance, edu18 cation, and outreach, including with respect to infor19 mation and training to aid in the design, installa20 tion, and implementation of program plans. 

21 ‘‘(2) PRIORITIZED PRODUCERS.—The Adminis22 trator shall prioritize providing technical assistance, 

23 education, and outreach under paragraph (1) to be24 ginning producers and socially disadvantaged pro25 ducers. 


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1 ‘‘(b) VERIFICATION OF PROGRAM PLANS.—The Ad2 ministrator shall establish requirements for how producers 

3 may verify the actual quantity of greenhouse gas emissions 

4 reduced or avoided, or greenhouse gases sequestered, from 

5 eligible practices under section 746(b)(1)(B). The pro6 ducer shall submit to the Administrator a report prepared 

7 by a third-party verifier accredited pursuant to paragraph 

8 (2) that provides such information as the Administrator 

9 requires to verify such quantities. 

10 ‘‘(1) SCHEDULE.—The Administrator shall pre11 scribe a schedule for the submission of reports under 

12 this subsection, which shall occur not less than once 

13 during the term of each contract. 

14 ‘‘(2) VERIFIER ACCREDITATION.— 

15 ‘‘(A) IN GENERAL.—The Administrator 

16 shall establish a process and requirements for 

17 periodic accreditation of third-party verifiers to 

18 ensure that such verifiers are professionally 

19 qualified and have no conflicts of interest. 

20 ‘‘(B) FEDERAL ACCREDITATION.—The 

21 process and requirements established under 

22 subparagraph (A) may include— 

23 ‘‘(i) accreditation standards for third24 party verifiers; and 


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1 ‘‘(ii) training and testing require2 ments for third-party verifiers. 

3 ‘‘(C) PUBLIC ACCESSIBILITY.—Each third4 party verifier meeting the requirements for ac5 creditation established pursuant to subpara6 graph (A) shall be listed in a publicly accessible 

7 database, which shall be maintained and up8 dated by the Administrator. 

9 ‘‘(c) AUDITS.—The Administrator shall conduct, on 

10 an annual basis, random audits of eligible activities car11 ried out by producers under program plans and the activi12 ties of third-party verifiers. At a minimum, the Adminis13 trator shall conduct audits each year of a representative 

14 sample of eligible activities and geographical areas. Noth15 ing in this subsection prevents the Administrator from 

16 conducting any other audit the Administrator considers to 

17 be necessary. 

18 ‘‘(d) ASSESSMENT OF QUANTIFICATION METH19 ODOLOGIES.—The Administrator shall regularly assess 

20 the verification requirements established under subsection 

21 (b) and develop new requirements for verification as need22 ed in order to effectively carry out this part. 

23 ‘‘(e) COORDINATION WITH OTHER FEDERAL AGEN24 CIES.—In carrying out this part, the Administrator shall 

25 coordinate activities of the Environmental Protection 


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1 Agency with the Department of Agriculture and other rel2 evant Federal agencies implementing conservation pro3 grams to align protocols, decrease administrative burdens, 

4 and increase enrollment in beneficial climate practices. 

5 ‘‘SEC. 748. REPORTING AND DATABASE. 

6 ‘‘(a) REPORT REQUIRED.—Not later than January 1, 

7 2029, and every 2 years thereafter, the Administrator 

8 shall submit to Congress a report on the status of eligible 

9 practices funded under this part, including— 

10 ‘‘(1) the amount of payments awarded; 

11 ‘‘(2) results of the eligible practices associated 

12 with such payments, including estimates of the 

13 quantity of reduction or avoidance of greenhouse gas 

14 emissions, or increases in sequestration of green15 house gases; and 

16 ‘‘(3) recommendations to improve the effective17 ness of such eligible practices. 

18 ‘‘(b) PRACTICE DATABASE.— 

19 ‘‘(1) IN GENERAL.—The Administrator shall 

20 use the data reported under subsection (a) to estab21 lish and maintain a publicly available database that 

22 provides— 

23 ‘‘(A) a compilation and analysis of eligible 

24 practices being carried out under program 

25 plans; and 


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1 ‘‘(B) a list of recommended eligible prac2 tices. 

3 ‘‘(2) PRIVACY.—Information provided under 

4 paragraph (1) shall be transformed into a statistical 

5 or aggregate form so as to not include any identifi6 able or personal information of individual producers. 

7 ‘‘SEC. 749. PROGRAM REVIEW AND REVISION. 

8 ‘‘At least once every 5 years, the Administrator, in 

9 consultation with the Secretary with respect to agricul10 tural production and forest management practices on eligi11 ble land, shall review and, as appropriate, update and re12 vise— 

13 ‘‘(1) the list of eligible practices established 

14 under section 744(a); 

15 ‘‘(2) the methodologies established under sec16 tion 744(c); 

17 ‘‘(3) the criteria to evaluate applications under 

18 section 745; 

19 ‘‘(4) the Program, as necessary, to increase 

20 participation by beginning producers and socially 

21 disadvantaged producers; and 

22 ‘‘(5) any other requirements established under 

23 this part to ensure the effectiveness of achieving the 

24 purposes in section 742, including by incorporating 

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1 comes of practices to improve model certainty and 

2 the accuracy of emission reduction estimates. 

3 ‘‘PART E—INTERNATIONAL RESERVE 

4 ALLOWANCE PROGRAM 

5 ‘‘SEC. 751. DEFINITIONS. 

6 ‘‘In this part: 

7 ‘‘(1) COVERED ARTICLE.—The term ‘covered 

8 article’ means any good which— 

9 ‘‘(A) is imported into the United States: 

10 and 

11 ‘‘(B) contains greater than 100 pounds of 

12 any combination of any covered primary good. 

13 ‘‘(2) COVERED IMPORTED GOOD.—The term 

14 ‘covered imported good’ means— 

15 ‘‘(A) a covered primary good; or 

16 ‘‘(B) a covered article. 

17 ‘‘(3) COVERED PRIMARY GOOD.—The term ‘cov18 ered primary good’ means any good which— 

19 ‘‘(A) is imported into the United States; 

20 and 

21 ‘‘(B) is produced by an eligible industrial 

22 sector listed pursuant to section 723. 

23 ‘‘SEC. 752. INTERNATIONAL RESERVE ALLOWANCE PRO24 GRAM. 

25 ‘‘(a) ESTABLISHMENT.— 


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1 ‘‘(1) IN GENERAL.—The Administrator, with 

2 the concurrence of the Commissioner responsible for 

3 U.S. Customs and Border Protection and in con4 sultation with additional Federal agencies as deter5 mined appropriate by the Administrator, shall issue 

6 regulations— 

7 ‘‘(A) establishing an international reserve 

8 allowance program for the sale, exchange, pur9 chase, transfer, and banking of international re10 serve allowances for covered imported goods; 

11 ‘‘(B) ensuring that the price for pur12 chasing an international reserve allowance is 

13 equivalent to the average of the previous four 

14 auction clearing prices for emission allowances 

15 under section 720; 

16 ‘‘(C) establishing a general methodology 

17 for calculating the quantity of international re18 serve allowances that an importer of a covered 

19 imported good must submit; 

20 ‘‘(D) requiring the submission of an appro21 priate amount of international reserve allow22 ances for covered imported goods entering the 

23 customs territory of the United States; 


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1 ‘‘(E) exempting from the requirements of 

2 subparagraph (D) covered imported goods that 

3 are— 

4 ‘‘(i) determined, by independent third5 party verification, to meet the relevant out6 put-based allocation benchmark under sec7 tion 723(b); 

8 ‘‘(ii) produced in any foreign country 

9 that the United Nations has identified as 

10 among the least developed of developing 

11 countries; or 

12 ‘‘(iii) produced in any foreign country 

13 that the Administrator has determined to 

14 be responsible for less than 0.5 percent of 

15 total global greenhouse gas emissions and 

16 less than 5 percent of United States im17 ports of covered imported goods with re18 spect to the relevant eligible industrial sec19 tor; 

20 ‘‘(F) specifying the procedures that U.S. 

21 Customs and Border Protection will apply for 

22 the declaration and entry of covered imported 

23 goods into the customs territory of the United 

24 States; 


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1 ‘‘(G) establishing procedures that prevent 

2 circumvention of the international reserve allow3 ance program requirements for covered im4 ported goods that are manufactured or proc5 essed in more than one foreign country; and 

6 ‘‘(H) publishing, on an annual basis, rel7 evant information regarding the quantity of 

8 international reserve allowances sold, the quan9 tity of covered imported goods entering the cus10 toms territory of the United States, relevant 

11 greenhouse gas emissions information of such 

12 goods, the country of origin of such goods, and 

13 other information as determined relevant by the 

14 Administrator. 

15 ‘‘(2) PURPOSE OF PROGRAM.—The Adminis16 trator shall establish the program under paragraph 

17 (1) consistent with international agreements to 

18 which the United States is a party, in a manner that 

19 minimizes the likelihood of carbon leakage as a re20 sult of differences between— 

21 ‘‘(A) the direct and indirect costs of com22 plying with part B of this title; and 

23 ‘‘(B) the direct and indirect costs, if any, 

24 of complying in other countries with greenhouse 

25 gas regulatory programs, requirements, export 


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1 tariffs, or other measures adopted or imposed 

2 to reduce greenhouse gas emissions. 

3 ‘‘(b) GREENHOUSE GAS EMISSIONS DATA FOR COV4 ERED IMPORTED GOODS.— 

5 ‘‘(1) IN GENERAL.—Under the regulations es6 tablished under subsection (a), the Administrator 

7 shall require independent, third-party verification of 

8 greenhouse gas emissions data, including attrib9 utable greenhouse gas emissions, for all relevant 

10 stages of production of each covered imported good 

11 entering the customs territory of the United States. 

12 ‘‘(2) FAILURE TO PRODUCE VERIFIED GREEN13 HOUSE GAS EMISSIONS DATA.—If the Administrator 

14 determines that an importer of a covered imported 

15 good has failed to provide accurate, sufficient, and 

16 independent, third-party verified data, the Adminis17 trator shall make a determination of the greenhouse 

18 gas emissions associated with the production of such 

19 good based on the best available data related to the 

20 greenhouse gas emissions and production data from 

21 all facilities which produce similar goods within the 

22 country of origin, the greenhouse gas emissions in23 tensity of the general economy of the country of ori24 gin of such good, and other factors determined rel25 evant by the Administrator. 


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1 ‘‘(c) DISPOSITION OF PROCEEDS.— 

2 ‘‘(1) CLEAN ENERGY REBATE PROGRAM SUP3 PLEMENTAL FUNDING.—50 percent of the proceeds 

4 from the sale of international reserve allowances 

5 under this section in each fiscal year shall be made 

6 available to the Secretary of the Treasury to carry 

7 out the Clean Energy Rebate Program established 

8 by section 102 of the Climate Pollution Standard 

9 and Community Investment Act of 2024. 

10 ‘‘(2) ADMINISTRATIVE EXPENSES.—The Ad11 ministrator may use, including the transfer of funds 

12 to the Commissioner responsible for U.S. Customs 

13 and Border Protection, not more than 10 percent of 

14 the proceeds from the sale of international reserve 

15 allowances under this section in each fiscal year to 

16 cover the administrative expenses associated with 

17 administering this section. 

18 ‘‘(3) REMAINING REVENUES.—The Adminis19 trator shall deposit any remaining proceeds from the 

20 sale of international reserve allowances under this 

21 section in a fiscal year in equal shares to the funds 

22 established by sections 103, 104, 105, and 106 of 

23 the Climate Pollution Standard and Community In24 vestment Act of 2024. 


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1 ‘‘(d) EFFECTIVE DATE.—The international reserve 

2 allowance program shall not apply to imports of covered 

3 imported goods entering the customs territory of the 

4 United States before January 1, 2027. 

5 ‘‘(e) COVERED ENTITIES.—International reserve al6 lowances shall not be used by covered entities to comply 

7 with part B of this title.’’. 

8 (b) CONFORMING AMENDMENTS.— 

9 (1) FEDERAL ENFORCEMENT.—Section 113 of 

10 the Clean Air Act (42 U.S.C. 7413) is amended— 

11 (A) in subsection (a)(3), by striking ‘‘or 

12 title VI,’’ and inserting ‘‘title VI, or title VII’’; 

13 (B) in subsection (b)(2), by striking ‘‘or 

14 title VI’’ and inserting ‘‘title VI, or title VII’’; 

15 (C) in subsection (c)— 

16 (i) in the first sentence of paragraph 

17 (1), by striking ‘‘or title VI (relating to 

18 stratospheric ozone control),’’ and insert19 ing ‘‘title VI, or title VII,’’; and 

20 (ii) in the first sentence of paragraph 

21 (3), by striking ‘‘or VI’’ and inserting ‘‘VI, 

22 or VII’’; 

23 (D) in subsection (d)(1)(B), by striking 

24 ‘‘or VI’’ and inserting ‘‘VI, or VII’’; and 


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1 (E) in subsection (f), in the first sentence, 

2 by striking ‘‘or VI’’ and inserting ‘‘VI, or VII’’. 

3 (2) INSPECTIONS, MONITORING, AND ENTRY.— 

4 Section 114(a) of the Clean Air Act (42 U.S.C. 

5 7414(a)) is amended by striking ‘‘section 112, (ii)’’ 

6 and inserting ‘‘section 112, or any regulation of 

7 greenhouse gas emissions under title VII, (ii)’’. 

8 (3) ENFORCEMENT.—Section 304(f) of the 

9 Clean Air Act (42 U.S.C. 7604(f)) is amended— 

10 (A) in paragraph (2), by striking ‘‘or’’ at 

11 the end; 

12 (B) in paragraph (3), by striking ‘‘; or’’ at 

13 the end and inserting a comma; 

14 (C) in paragraph (4), by striking the pe15 riod at the end and inserting ‘‘, or’’; and 

16 (D) by inserting the following new para17 graph after paragraph (4): 

18 ‘‘(5) any requirement of title VII,’’. 

19 (4) ADMINISTRATIVE PROCEEDINGS AND JUDI20 CIAL REVIEW.—Section 307 of the Clean Air Act 

21 (42 U.S.C. 7607) is amended— 

22 (A) in subsection (a), by striking ‘‘, or sec23 tion 306’’ and inserting ‘‘section 306, or title 

24 VII’’; 


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1 (B) in subsection (b)(1), by striking ‘‘sec2 tion 120,’’ in the first sentence and inserting 

3 ‘‘section 120, any final action under title VII,’’; 

4 and 

5 (C) in subsection (d)(1)— 

6 (i) in subparagraph (T), by striking ‘‘, 

7 and’’ at the end and inserting a comma; 

8 (ii) by redesignating subparagraph 

9 (U) as subparagraph (V); and 

10 (iii) by inserting the following new 

11 subparagraph after subparagraph (T): 

12 ‘‘(U) the promulgation or revision of any regu13 lation under title VII, and’’. 

14 (5) ENERGY INDEPENDENCE AND SECURITY

15 ACT OF 2007.—Section 548(b) of the Energy Inde16 pendence and Security Act of 2007 (42 U.S.C. 

17 17158(b)) is amended— 

18 (A) in paragraph (1), by striking the ‘‘or’’ 

19 at the end; 

20 (B) in paragraph (2), by striking the pe21 riod at the end and inserting ‘‘; and’’; and 

22 (C) by adding at the end the following: 

23 ‘‘(3) section 722(e) of the Clean Air Act.’’. 


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1 SEC. 102. CLEAN ENERGY REBATE PROGRAM. 

2 (a) IN GENERAL.—The Secretary, in consultation 

3 with the Secretary of Agriculture and the Secretary of 

4 Health and Human Services, shall carry out a program 

5 to be known as the Clean Energy Rebate Program to pro6 vide rebates to eligible households using amounts made 

7 available to the Secretary under sections 722(c) and 752 

8 of the Clean Air Act. 

9 (b) STREAMLINED PARTICIPATION FOR CERTAIN

10 BENEFICIARIES.—The Secretary shall— 

11 (1) periodically estimate the number of eligible 

12 households, and the number of participating eligible 

13 households, for the Clean Energy Rebate Program; 

14 and 

15 (2) develop procedures, in consultation with the 

16 Commissioner of Social Security, the Railroad Re17 tirement Board, the Secretary of Veterans Affairs, 

18 and relevant State agencies, to ensure that bene19 ficiaries of the benefit programs administered by 

20 such entities receive the rebate for which such bene21 ficiaries are eligible under the Clean Energy Rebate 

22 Program. 

23 (c) REBATE AMOUNT.—The rebate amount for an eli24 gible household under this section shall be determined by 

25 the Secretary, accounting for— 


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1 (1) the amount of funding made available under 

2 section 722(c) of the Clean Air Act; and 

3 (2) the number of citizens and permanent legal 

4 residents of the eligible household. 

5 (d) DELIVERY MECHANISM.—The Secretary shall es6 tablish rules for providing rebates to eligible households 

7 under this section in an administratively simple manner, 

8 and on a quarterly basis through— 

9 (1) direct deposit into the eligible household’s 

10 designated bank account; 

11 (2) a State’s electronic benefit transfer system; 

12 or 

13 (3) another Federal or State mechanism, if 

14 such a mechanism is approved by the Secretary. 

15 (e) ADMINISTRATION BY STATES.— 

16 (1) IN GENERAL.—The Secretary may, in con17 sultation with the Secretary of Agriculture and the 

18 Secretary of Health and Human Services, establish 

19 uniform national program standards to enable 

20 States, upon the approval of the Secretary, to ad21 minister the Clean Energy Rebate Program in the 

22 State. Such a State shall establish procedures gov23 erning the administration of the Clean Energy Re24 bate Program that the relevant State agency deter25 mines best serve eligible households in the State, inVerDate Sep 11 2014 01:45 Aug 24, 2024 Jkt 049200 PO 00000 Frm 00120 Fmt 6652 Sfmt 6201 E:\BILLS\H9230.IH H9230

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1 cluding households with special needs, such as 

2 households with elderly or disabled members, house3 holds in rural areas, homeless individuals, and 

4 households residing on reservations as defined in the 

5 Indian Child Welfare Act of 1978 and the Indian Fi6 nancing Act of 1974. 

7 (2) COADMINISTRATION WITH OTHER PRO8 GRAMS.—Such a State may coadminister the Clean 

9 Energy Rebate Program with other State programs, 

10 such as the supplemental nutrition assistance pro11 gram authorized by the Food and Nutrition Act of 

12 2008 in accordance with the provisions of this title. 

13 (3) ADDITIONAL REQUIREMENTS.—No State 

14 shall impose any condition of eligibility for a rebate 

15 under this section other than what is required by 

16 this section. 

17 (4) OVERSIGHT.—Each State administering the 

18 Clean Energy Rebate Program shall— 

19 (A) assume responsibility for the certifi20 cation of eligible households and for the 

21 issuance of rebates and the control and ac22 countability thereof; and 

23 (B) report information to the Secretary at 

24 such a time and manner as determined appro25 priate by the Secretary. 


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1 (f) OUTREACH.—The Secretary shall carry out a ro2 bust and comprehensive outreach program to ensure that 

3 eligible households learn of their eligibility for rebates and 

4 are advised of the opportunity to receive such rebates. 

5 (g) TAX TREATMENT.—Rebate amounts provided 

6 under this section may not be includible in the gross in7 come of the recipient for purposes of the Internal Revenue 

8 Code of 1986. 

9 (h) REGULATIONS.—Not later than 24 months after 

10 the date of enactment of this title, the Secretary shall 

11 issue such regulations, or guidance, as the Secretary de12 termines necessary or appropriate for the effective and ef13 ficient administration of the Clean Energy Rebate Pro14 gram. 

15 (i) DEFINITIONS.—In this section: 

16 (1) ELIGIBLE HOUSEHOLD.—The term ‘‘eligible 

17 household’’ means a household— 

18 (A) for which the gross income of the 

19 household does not exceed 200 percent of the 

20 poverty line; 

21 (B) for which the relevant State agency of 

22 the State in which the household is located de23 termines that the household is participating 

24 in— 


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1 (i) the supplemental nutrition assist2 ance program authorized by the Food and 

3 Nutrition Act of 2008 (7 U.S.C. 2011 et 

4 seq.); 

5 (ii) the food distribution program on 

6 Indian reservations authorized by section 

7 4(b) of such Act; or 

8 (iii) the program for nutrition assist9 ance in Puerto Rico or American Samoa 

10 under section 19 of such Act; 

11 (C) that consists of a single individual or 

12 a married couple, and receives benefits under 

13 the supplemental security income program 

14 under title XVI of the Social Security Act (42 

15 U.S.C. 1381 et seq.); and 

16 (D) of which at least one member is a cit17 izen or permanent legal resident. 

18 (2) GROSS INCOME OF A HOUSEHOLD.—The 

19 term ‘‘gross income of a household’’ means the gross 

20 income of a household that is determined in accord21 ance with standards and procedures established 

22 under section 5 of the Food and Nutrition Act of 

23 2008 (7 U.S.C. 2014). 

24 (3) HOUSEHOLD.—The term ‘‘household’’ has 

25 the meaning given the term ‘‘Household’’ in section 


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1 3(m) of the Food and Nutrition Act of 2008 (7 

2 U.S.C. 2012(m)). 

3 (4) POVERTY LINE.—The term ‘‘poverty line’’ 

4 has the meaning given such term in section 673(2) 

5 of the Community Services Block Grant Act (42 

6 U.S.C. 9902). 

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

8 the Secretary of the Treasury. 

9 (6) STATE.—The term ‘‘State’’ means the 50 

10 States, the District of Columbia, the Commonwealth 

11 of Puerto Rico, American Samoa, the United States 

12 Virgin Islands, Guam, and the Commonwealth of the 

13 Northern Mariana Islands. 

14 SEC. 103. WORKER AND COMMUNITY ASSISTANCE FUND. 

15 (a) ESTABLISHMENT.—There is established in the 

16 Treasury of the United States a fund, to be known as the 

17 Worker and Community Assistance Fund, consisting of— 

18 (1) such amounts as are deposited in the fund 

19 under sections 722(g) and 752 of the Clean Air Act; 

20 and 

21 (2) such additional amounts as may be appro22 priated to supplement the fund. 

23 (b) EXPENDITURES FROM FUND.— 

24 (1) AVAILABILITY.—Amounts deposited in the 

25 fund pursuant to subsection (a) shall be available to 


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1 the Secretary of Labor and the Director of the Of2 fice of Energy and Economic Transition without 

3 subsequent appropriation and shall remain available 

4 without fiscal year limitation until expended. 

5 (2) ADMINISTRATIVE EXPENSES.—The Sec6 retary of Labor and the Director of the Office of 

7 Energy and Economic Transition may use not more 

8 than 5 percent of the amount available in the Work9 er and Community Assistance Fund on October 1 of 

10 each fiscal year to cover the administrative expenses 

11 of carrying out title II of this Act for that fiscal 

12 year. 

13 SEC. 104. CLEANER AIR COMMUNITY FUND. 

14 (a) ESTABLISHMENT.—There is established in the 

15 Treasury of the United States a fund, to be known as the 

16 Cleaner Air Community Fund, consisting of— 

17 (1) such amounts as are deposited in the fund 

18 under sections 722(h) and 752 of the Clean Air Act; 

19 and 

20 (2) such additional sums as may be appro21 priated to supplement the fund. 

22 (b) EXPENDITURES FROM FUND.— 

23 (1) IN GENERAL.—Amounts deposited in the 

24 fund pursuant to subsection (a) shall be available to 

25 the Administrator of the Environmental Protection 


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1 Agency without subsequent appropriation and shall 

2 remain available without fiscal year limitation until 

3 expended. 

4 (2) ADMINISTRATIVE EXPENSES.—The Admin5 istrator of the Environmental Protection Agency 

6 may use not more than 5 percent of the amount 

7 available in the Cleaner Air Community Fund on 

8 October 1 of each fiscal year to cover the adminis9 trative expenses of carrying out part C of title VII 

10 of the Clean Air Act for that fiscal year. 

11 SEC. 105. NEGATIVE EMISSIONS ACTIVITIES FUND. 

12 (a) ESTABLISHMENT.—There is established in the 

13 Treasury of the United States a fund, to be known as the 

14 Negative Emissions Activities Fund, consisting of— 

15 (1) such amounts as are deposited in the fund 

16 under sections 722(i) and 752 of the Clean Air Act; 

17 and 

18 (2) such additional amounts as may be appro19 priated to supplement the fund. 

20 (b) EXPENDITURES FROM FUND.— 

21 (1) IN GENERAL.—Amounts deposited in the 

22 fund pursuant to subsection (a) shall be available to 

23 the Administrator of the Environmental Protection 

24 Agency without subsequent appropriation and shall 


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1 remain available without fiscal year limitation until 

2 expended. 

3 (2) ADMINISTRATIVE EXPENSES.—The Admin4 istrator of the Environmental Protection Agency 

5 may use not more than 5 percent of the amount 

6 available in the Negative Emissions Activities Fund 

7 on October 1 of each fiscal year to cover the admin8 istrative expenses of carrying out part D of title VII 

9 of the Clean Air Act for that fiscal year. 

10 SEC. 106. ENERGY INNOVATION FUND. 

11 (a) ESTABLISHMENT.—There is established in the 

12 Treasury of the United States a fund, to be known as the 

13 Energy Innovation Fund, consisting of— 

14 (1) such amounts as are deposited in the fund 

15 under section 722(j) and 752 of the Clean Air Act; 

16 and 

17 (2) such additional amounts as may be appro18 priated to supplement the fund. 

19 (b) EXPENDITURES FROM FUND.— 

20 (1) IN GENERAL.—Beginning in fiscal year 

21 2026, amounts deposited in the fund pursuant to 

22 subsection (a) shall be available to the Secretary of 

23 Energy without subsequent appropriation and shall 

24 remain available without fiscal year limitation until 


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1 expended to provide assistance pursuant to sub2 section (c). 

3 (2) ADMINISTRATIVE EXPENSES.—The Sec4 retary of Energy may use not more than 5 percent 

5 of the amount available in the Energy Innovation 

6 Fund on October 1 of each fiscal year to cover the 

7 administrative expenses of carrying out this section 

8 for that fiscal year. 

9 (c) USE OF FUNDS.—The Secretary of Energy shall 

10 provide assistance under this section, distributed on a 

11 competitive basis, to local, State, and Tribal governments, 

12 institutions of higher education, companies, research foun13 dations, trade and industry research collaborations, or 

14 consortia of such entities, or other appropriate research 

15 and development entities to support research, develop16 ment, and demonstration of technology that the Secretary 

17 determines supports achievement of the goals of section 

18 702 of the Clean Air Act, including through targeted ac19 celeration of— 

20 (1) novel early-stage clean energy research; 

21 (2) development of techniques, processes, and 

22 technologies, and related testing and evaluation; 

23 (3) development of manufacturing processes for 

24 clean energy technologies; and 


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1 (4) demonstration for commercial applications 

2 of clean energy technologies. 

3 (d) SUPPLEMENT NOT SUPPLANT.—Assistance pro4 vided under this section shall be used to supplement, and 

5 not to supplant, any other Federal resources available to 

6 carry out the activities described in this section. 

7 (e) REPORT TO CONGRESS.—Not later than 3 years 

8 after the date of enactment of this Act, and each year 

9 thereafter, the Secretary of Energy shall submit to Con10 gress and make available to the public a report that de11 scribes the activities funded by the Energy Innovation 

12 Fund. 

13 SEC. 107. EMISSION ALLOWANCE MARKET OVERSIGHT. 

14 (a) DEFINITION OF EMISSION ALLOWANCE.—In this 

15 section, the term ‘‘emission allowance’’ means any emis16 sion allowance established or issued under title VII of the 

17 Clean Air Act, or any derivative of such allowance. 

18 (b) INTERAGENCY WORKING GROUP.— 

19 (1) ESTABLISHMENT.—Not later than 1 year 

20 after the date of enactment of this section, the 

21 President shall establish an interagency working 

22 group to support the oversight of emission allowance 

23 transactions. Such working group shall include rep24 resentatives from— 

25 (A) the Environmental Protection Agency; 


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1 (B) the Federal Energy Regulatory Com2 mission; 

3 (C) the Commodity Futures Trading Com4 mission; and 

5 (D) other relevant Federal agencies as de6 termined by the President. 

7 (2) RECOMMENDATIONS.—The working group 

8 shall make periodic recommendations to Congress 

9 and relevant Federal agencies to— 

10 (A) provide for effective and comprehensive 

11 market oversight of emission allowance trans12 actions; 

13 (B) prohibit fraud, market manipulation, 

14 and excess speculation related to emission al15 lowance transactions; 

16 (C) limit unreasonable fluctuation in the 

17 prices of emission allowances; 

18 (D) ensure market transparency to provide 

19 for efficient price discovery, prevention of fraud, 

20 market manipulation, and excess speculation; 

21 and 

22 (E) facilitate compliance with title VII of 

23 the Clean Air Act. 

24 (3) REPORT.—Not later than 3 years after the 

25 date of enactment of this section, and biennially 


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1 thereafter, the interagency working group shall sub2 mit to the President and Congress a written report 

3 that includes the recommendations made under 

4 paragraph (2) for— 

5 (A) regulations and other actions to be 

6 taken by Federal agencies to enhance the over7 sight of emission allowance transactions; and 

8 (B) statutory changes needed to ensure the 

9 proper operation and oversight of transparent, 

10 fair, stable, and efficient emission allowance 

11 transactions. 

12 SEC. 108. DIRECT HIRE AUTHORITY FOR IMPLEMENTATION 

13 OF THIS TITLE. 

14 Notwithstanding section 3304 and sections 3309 

15 through 3318 of title 5, United States Code, the Adminis16 trator of the Environmental Protection Agency, upon a de17 termination by the Administrator that there is a severe 

18 shortage of candidates or a critical hiring need for par19 ticular positions to carry out this title (including the 

20 amendments made by this title), may recruit and directly 

21 appoint highly qualified individuals into the competitive 

22 service. 


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1 TITLE II—WORKER AND 

2 COMMUNITY ASSISTANCE 

3 SEC. 201. DEFINITIONS. 

4 In this title: 

5 (1) ADVERSELY AFFECTED COMMUNITY.—The 

6 term ‘‘adversely affected community’’ means a unit 

7 of local government or an Indian Tribe (or a polit8 ical subdivision thereof) that has been, or is at risk 

9 to be, significantly disrupted by the United States 

10 transition to net-zero greenhouse gas emissions 

11 through the loss of a significant portion of locally 

12 generated tax revenue or employment due to the clo13 sure, or risk of closure, of an impacted employer 

14 within its jurisdiction. 

15 (2) ADVERSELY AFFECTED WORKER.—The 

16 term ‘‘adversely affected worker’’ means an indi17 vidual who has been, or is at risk to be, totally sepa18 rated or partially separated from employment by an 

19 impacted employer. 

20 (3) DIRECTOR.—The term ‘‘Director’’ means 

21 the Director of the Office of Energy and Economic 

22 Transition. 

23 (4) IMPACTED EMPLOYER.—The term ‘‘im24 pacted employer’’ means a private entity that is pri25 marily engaged in business related to— 


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1 (A) the extraction of fossil fuels; 

2 (B) the refinement of fossil fuels; 

3 (C) the generation of electricity from fossil 

4 fuels; 

5 (D) the production of energy-intensive in6 dustrial products; 

7 (E) the manufacture of light-, medium-, 

8 and heavy-duty vehicles that utilize an internal 

9 combustion engine and component parts for 

10 such vehicles; 

11 (F) the construction, operation, and main12 tenance of infrastructure to deliver fossil fuels 

13 for domestic use; or 

14 (G) other industries significantly disrupted 

15 by the United States transition to net-zero 

16 greenhouse gas emissions, as determined by the 

17 Director, in consultation with the Administrator 

18 of the Environmental Protection Agency and 

19 the Secretary of Labor. 

20 (5) PARTIAL SEPARATION.—The terms ‘‘partial 

21 separation’’ and ‘‘partially separated’’ mean, with 

22 respect to an individual who has not been totally 

23 separated from employment, that— 

24 (A) the number of hours of work for such 

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1 ployer to 80 percent or less of the average num2 ber of hours per week such individual worked 

3 per week prior to any separation from employ4 ment; and 

5 (B) the wages for such individual have 

6 been reduced by an impacted employer to 80 

7 percent or less of the average wages per week 

8 while employed by the impacted employer prior 

9 to any separation. 

10 (6) TOTAL SEPARATION.—The terms ‘‘total 

11 separation’’ and ‘‘totally separated’’ mean the layoff 

12 or severance of an individual from employment by an 

13 impacted employer. 

14 SEC. 202. ENERGY AND ECONOMIC TRANSITION IMPACT 

15 STUDIES. 

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

17 seek to enter into an agreement with the National Acad18 emy of Sciences under which the Academy agrees to con19 duct studies on matters concerning the potential impacts 

20 of achieving net-zero greenhouse gas emissions on workers 

21 and communities dependent on employment related to fos22 sil fuels as follows: 

23 (1) Not later than 1 year after the date of 

24 entry into such agreement, the Academy shall com25 plete a study focused on communities that have exVerDate Sep 11 2014 01:45 Aug 24, 2024 Jkt 049200 PO 00000 Frm 00134 Fmt 6652 Sfmt 6201 E:\BILLS\H9230.IH H9230

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1 perienced an energy-related transition within the 

2 previous 10 years, including communities that were 

3 dependent on coal, and submit to Congress and the 

4 Secretary of Energy a report on the results of such 

5 study. 

6 (2) Not later than 3 years after the date of 

7 entry into such agreement, the Academy shall com8 plete a study focused on communities and industries 

9 not covered in the study under paragraph (1) that 

10 are likely to experience an energy-related transition 

11 should the United States achieve net-zero green12 house gas emissions by 2050, and submit to Con13 gress and the Secretary of Energy a report on the 

14 results of such study. 

15 (b) TIMING OF AGREEMENT.—The Secretary of En16 ergy shall seek to enter into the agreement described in 

17 subsection (a) not later than 180 days after the date of 

18 the enactment of this Act. 

19 (c) REQUIREMENTS.—The study and report under 

20 paragraph (1) of subsection (a), with respect to commu21 nities described in such paragraph, and the study and re22 port under paragraph (2) of subsection (a), with respect 

23 to communities described in such paragraph, shall— 

24 (1) assess current and foreseeable trends in 

25 worker and community disruptions associated with 


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1 the United States transition to achieving net-zero 

2 greenhouse gas emissions, and the effects of such 

3 trends on the social, economic, and other require4 ments of the United States; 

5 (2) identify types of occupations related to fos6 sil fuels that may be impacted by the United States 

7 transition to achieving net-zero greenhouse gas emis8 sions, including— 

9 (A) occupations involved with— 

10 (i) the extraction of fossil fuels; 

11 (ii) the refinement of fossil fuels; 

12 (iii) the generation of electricity from 

13 fossil fuels; 

14 (iv) the production of energy-intensive 

15 industrial products; 

16 (v) the manufacture of light-, me17 dium-, and heavy-duty vehicles that utilize 

18 an internal combustion engine and compo19 nent parts for such vehicles; and 

20 (vi) the construction, operation, and 

21 maintenance of infrastructure to deliver 

22 fossil fuels for domestic use; and 

23 (B) for each type of occupation identified 

24 under subparagraph (A), estimates of— 


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1 (i) the number of employees serving in 

2 each type of occupation; 

3 (ii) the locations of employees for each 

4 type of occupation; 

5 (iii) the average wages and benefits of 

6 employees for each type of occupation; and 

7 (iv) the average age of employees for 

8 each type of occupation, including an esti9 mate of the number of employees 55 years 

10 of age or older; 

11 (3) assess impacts and potential impacts associ12 ated with the United States transition to achieving 

13 net-zero greenhouse gas emissions on workers in the 

14 types of occupations identified under paragraph (2); 

15 (4) identify skills, including professional certifi16 cations, typically associated with each type of occu17 pation identified under paragraph (2) and potential 

18 occupations utilizing the same or similar skills in in19 dustries not impacted by the United States transi20 tion to achieving net-zero greenhouse gas emissions, 

21 including an estimate of average wages and benefits 

22 for each such potential occupation; 

23 (5) identify the ages and locations of, and exist24 ing debt burdens, including debt burdens resulting 

25 from Department of Agriculture Rural Utilities 


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1 Service loans, related to existing fossil fuel-powered 

2 electricity generating units; 

3 (6) identify municipal and county governments 

4 that derive— 

5 (A) more than 25 percent of locally gen6 erated tax revenue or employment within the 

7 jurisdiction of the government from industries 

8 employing workers in types of occupations iden9 tified under paragraph (2); and 

10 (B) more than 50 percent of locally gen11 erated tax revenue or employment within that 

12 jurisdiction from such industries; 

13 (7) assess the status and condition of commu14 nities already affected by the transition to achieving 

15 net-zero greenhouse gas emissions, that have lost 

16 significant locally generated tax revenue or employ17 ment within the past 10 years; 

18 (8) assess economic development and alter19 native employment opportunities in communities 

20 identified in paragraphs (6) and (7), including an 

21 assessment of existing educational, workforce devel22 opment, and infrastructure assets, including trans23 portation, energy, and digital infrastructure, near 

24 identified communities; 


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1 (9) identify commonly occurring municipal and 

2 county government services and programs funded by 

3 locally generated tax revenues in communities identi4 fied in paragraphs (6) and (7), including— 

5 (A) education; 

6 (B) public safety, including police and fire 

7 departments; 

8 (C) health care; 

9 (D) infrastructure; and 

10 (E) workforce development; and 

11 (10) identify potential strategies, consistent 

12 with achieving net-zero greenhouse gas emissions, to 

13 avoid future disruptions among businesses and work14 ers, including strategies to reskill workers to fill jobs 

15 in emerging and growing industries. 

16 (d) RECOMMENDATIONS.—The studies and reports 

17 under subsection (a) shall identify actions that could be 

18 taken regarding worker and community transition to net19 zero greenhouse gas emissions, including— 

20 (1) compensation packages for employees in 

21 types of occupations identified under subsection 

22 (c)(2), including— 

23 (A) transition adjustment assistance, po24 tentially including support for wages, pension, 

25 health care, and other benefits; and 


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1 (B) enabling early retirement for such em2 ployees over the age of 55; 

3 (2) training and further education for employ4 ees in occupations identified under subsection (c)(2), 

5 potentially including job placement and relocation 

6 assistance; 

7 (3) economic development and diversification of 

8 communities identified under paragraphs (6) and (7) 

9 of subsection (c), including employment and develop10 ment opportunities associated with environmental re11 mediation; 

12 (4) financial assistance packages for commu13 nities identified in paragraphs (6) and (7) of sub14 section (c) to provide temporary replacement of lost 

15 locally generated tax revenue; and 

16 (5) recommendations for remedying deficiencies 

17 of existing programs and activities identified in sub18 section (c), which may include recommendations for 

19 Federal legislation and Executive action. 

20 (e) AUTHORIZATION OF APPROPRIATIONS.—There is 

21 authorized to be appropriated such sums as are necessary 

22 to carry out this section. 

23 SEC. 203. OFFICE OF ENERGY AND ECONOMIC TRANSITION. 

24 (a) ESTABLISHMENT.—There is established in the 

25 Executive Office of the President an Office of Energy and 


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1 Economic Transition. The Office shall be led by a Director 

2 who shall be appointed by the President, to serve at the 

3 pleasure of the President, by and with the advice and con4 sent of the Senate. 

5 (b) DIRECTOR QUALIFICATIONS.—The Director shall 

6 be a person who, as a result of training, experience, and 

7 attainments, is exceptionally well qualified to— 

8 (1) appraise programs and activities of the Fed9 eral Government in light of the challenges posed to 

10 adversely affected workers and adversely affected 

11 communities; 

12 (2) be conscious of and responsive to the sci13 entific, economic, social, cultural, and pollution re14 duction needs and interests of the United States; 

15 and 

16 (3) formulate and recommend national policies 

17 to assist workers and communities disrupted in the 

18 United States transition to achieving net-zero green19 house gas emissions. 

20 (c) COMPENSATION FOR DIRECTOR.—The annual 

21 rate of pay for the Director shall be fixed by the President 

22 at a rate that may not exceed the annual rate of pay for 

23 level II of the Executive Schedule. 

24 (d) DUTIES OF DIRECTOR.—The Director shall assist 

25 and advise the President on policies and programs of the 


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1 Federal Government affecting the United States transition 

2 to achieving net-zero greenhouse gas emissions by— 

3 (1) administering the programs and activities 

4 under this title; 

5 (2) assisting and advising the President in the 

6 preparation of the Worker and Community Transi7 tion Report required under subsection (g); 

8 (3) reviewing and appraising the various pro9 grams and activities of the Federal Government re10 lated to adversely affected workers and economic de11 velopment and diversification of adversely affected 

12 communities, and making recommendations to the 

13 President with respect to such programs and activi14 ties; 

15 (4) coordinating relevant programs and activi16 ties among the relevant Federal departments and 

17 agencies through the Interagency Energy and Eco18 nomic Transition Task Force convened pursuant to 

19 section 204; 

20 (5) coordinating across Federal departments, 

21 agencies, and other initiatives to align energy-related 

22 transition strategies with other national economic 

23 development strategies, including national manufac24 turing, infrastructure, and environmental remedi25 ation strategies; 


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1 (6) in accordance with section 205, being re2 sponsive to and coordinating with the Stakeholder 

3 Advisory Committee established under such section; 

4 (7) creating and maintaining a website to serve 

5 as an information clearinghouse containing informa6 tion on relevant programs and activities from rel7 evant departments and agencies across the Federal 

8 Government to increase awareness of Federal pro9 grams, grants, loans, loan guarantees, and other as10 sistance and resources the Director determines may 

11 assist economic development and diversification ac12 tivities in adversely affected communities and sup13 port adversely affected workers; 

14 (8) providing assistance to adversely affected 

15 communities, including technical and financial as16 sistance, and support for capacity building and plan17 ning capabilities by adversely affected communities 

18 and community-based leaders of such communities, 

19 including assistance provided pursuant to section 

20 206 or through Community-Based Transition Hubs 

21 pursuant to section 207; 

22 (9) collecting, collating, analyzing, and inter23 preting data and information on adversely affected 

24 workers and economic development and diversifica25 tion of adversely affected communities; and 


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1 (10) implementing grant programs or other 

2 forms of financial and technical assistance to sup3 port adversely affected workers and the economic de4 velopment and diversification of adversely affected 

5 communities as required by this title or after deter6 mining no such similar program or assistance is 

7 being provided by a Federal agency. 

8 (e) EMPLOYMENT OF PERSONNEL, EXPERTS, AND

9 CONSULTANTS.—The Office may employ such officers and 

10 employees as may be necessary to carry out its duties 

11 under this title. In addition, the Office may employ and 

12 fix the compensation of such experts and consultants as 

13 may be necessary for carrying out such duties, in accord14 ance with section 3109 of title 5, United States Code. 

15 (f) REIMBURSEMENTS.—The Office may accept reim16 bursements from any private nonprofit organization, any 

17 department, agency, or instrumentality of the Federal 

18 Government, or any State or local government for the rea19 sonable travel expenses incurred by the Director or an em20 ployee of the Office in connection with attendance at any 

21 conference, seminar, or similar meeting conducted for the 

22 benefit of the Office. 

23 (g) REPORT TO CONGRESS.—Beginning in 2026, the 

24 President shall transmit to Congress a report, to be known 


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1 as the Worker and Community Transition Report, not less 

2 than once every 2 years, which shall set forth— 

3 (1) the status and condition of workers and 

4 communities disrupted in the United States transi5 tion to achieving net-zero greenhouse gas emissions, 

6 with an emphasis on economic development and di7 versification activities in adversely affected commu8 nities; 

9 (2) current and foreseeable trends in worker 

10 and community disruptions associated with the 

11 United States transition to achieving net-zero green12 house gas emissions, and the effects of such trends 

13 on the social, economic, and other requirements of 

14 the United States; 

15 (3) a review of the programs and activities (in16 cluding regulatory activities) of the Federal Govern17 ment, State, Tribal, and local governments, and non18 governmental entities or individuals that serve ad19 versely affected communities; 

20 (4) recommendations for remedying deficiencies 

21 of existing programs and activities described in 

22 paragraph (3), which may include recommendations 

23 for new programs and activities and legislation to 

24 authorize such programs; and 


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1 (5) the expenditures of the Office in support of 

2 programs and activities authorized under this title. 

3 (h) AUTHORIZATION OF APPROPRIATIONS.—There 

4 are authorized to be appropriated to carry out this section 

5 such sums as are necessary. 

6 SEC. 204. INTERAGENCY ENERGY AND ECONOMIC TRANSI7 TION TASK FORCE. 

8 (a) IN GENERAL.—Not later than 1 year after the 

9 date of enactment of this Act, the Director shall convene 

10 regularly a task force, to be known as the Interagency En11 ergy and Economic Transition Task Force, to enhance the 

12 coordination of relevant programs and activities intended 

13 to support adversely affected workers and adversely af14 fected communities, with an emphasis on economic devel15 opment and diversification activities in adversely affected 

16 communities. 

17 (b) COMPOSITION.—The Task Force shall be com18 prised of the following (or a designee): 

19 (1) The Secretary of Energy. 

20 (2) The Secretary of Labor. 

21 (3) The Secretary of Commerce. 

22 (4) The Secretary of Agriculture. 

23 (5) The Secretary of Health and Human Serv24 ices. 


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1 (6) The Secretary of Housing and Urban Devel2 opment. 

3 (7) The Secretary of the Interior. 

4 (8) The Secretary of Transportation. 

5 (9) The Secretary of the Treasury. 

6 (10) The Secretary of Education. 

7 (11) The Administrator of the Environmental 

8 Protection Agency. 

9 (12) The Administrator of the Small Business 

10 Administration. 

11 (13) The Director of the Office of Management 

12 and Budget. 

13 (14) The Chair of the Council on Environ14 mental Quality. 

15 (15) The Chairman of the Appalachian Re16 gional Commission. 

17 (16) Such other Federal officials as determined 

18 appropriate by the Director. 

19 (c) FUNCTIONS.—The Task Force shall— 

20 (1) report to the President through the Direc21 tor; 

22 (2) seek to enhance coordination and implemen23 tation of programs and activities related to the du24 ties of the Office of Energy and Economic Transi25 tion in order to ensure that the administration of 


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1 programs, activities, and policies across Federal de2 partments and agencies is carried out in a consistent 

3 and complementary manner; 

4 (3) utilize, to the fullest extent possible, the 

5 services, facilities, and information (including statis6 tical information) of public and private agencies and 

7 organizations, and individuals, in order that duplica8 tion of effort and expense may be avoided; and 

9 (4) identify, based in part on recommendations 

10 from the Stakeholder Advisory Committee estab11 lished under section 205 and the public, opportuni12 ties to improve support for adversely affected work13 ers and adversely affected communities for relevant 

14 Federal departments and agencies to take into con15 sideration and address. 

16 (d) PUBLIC PARTICIPATION.—The Task Force 

17 shall— 

18 (1) hold public meetings or otherwise solicit 

19 public participation for the purposes of developing 

20 and coordinating policies and programs of the Fed21 eral Government related to adversely affected work22 ers and adversely affected communities in the 

23 United States transition to achieving net-zero green24 house gas emissions; and 


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1 (2) publish a summary of any comments and 

2 recommendations provided pursuant to paragraph 

3 (1). 

4 SEC. 205. STAKEHOLDER ADVISORY COMMITTEE. 

5 (a) IN GENERAL.—Not later than 1 year after the 

6 date of enactment of this Act, the Director shall establish 

7 a committee, to be known as the Stakeholder Advisory 

8 Committee, to consult with representatives of adversely af9 fected communities, adversely affected workers, industry, 

10 labor unions, economic development experts, State, local, 

11 and Tribal governments, and other organizations and indi12 viduals, as determined appropriate by the Director, to ad13 dress the needs of workers and communities affected by 

14 the United States energy transition to net-zero greenhouse 

15 gas emissions. 

16 (b) MEMBERSHIP.—The Stakeholder Advisory Com17 mittee shall be comprised of members who have knowledge 

18 of, or experience relating to, workers and communities ad19 versely affected by the United States energy transition to 

20 net-zero greenhouse gas emissions, with an emphasis on 

21 economic development and diversification activities in ad22 versely affected communities, and shall include— 

23 (1) representatives from labor unions, including 

24 at least one representative from— 

25 (A) the mining sector; 


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1 (B) the electricity generation sector; 

2 (C) the manufacturing sector; and 

3 (D) the transportation sector; 

4 (2) community leaders from adversely affected 

5 communities, including community leaders from 

6 Tribal and Indigenous communities; 

7 (3) representatives from State, Tribal, and local 

8 governments; 

9 (4) experts in economic development; 

10 (5) experts in workforce development; 

11 (6) representatives from nongovernmental orga12 nizations, including environmental organizations; 

13 and 

14 (7) representatives from the private sector. 

15 (c) RESPONSIBILITIES.—The Stakeholder Advisory 

16 Committee shall provide independent advice and rec17 ommendations to the Director with respect to issues relat18 ing to the duties of the Office of Energy and Economic 

19 Transition, including— 

20 (1) improving participation, cooperation, and 

21 communication between the Office and adversely af22 fected communities; 

23 (2) recommending lessons learned and best 

24 practices from communities, regions, and countries 


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1 that have gone through, are going through, or are 

2 planning for an energy-related economic transition; 

3 (3) supporting community-based public meet4 ings, as described in subsection (f); 

5 (4) soliciting and receiving feedback from Com6 munity-Based Transition Hubs receiving grants pur7 suant to section 207; and 

8 (5) producing a report within 2 years of estab9 lishment, and every 2 years thereafter, and make 

10 recommendations, including actions that could be 

11 taken under executive authority and new legislation. 

12 (d) RECOMMENDATIONS FROM THE STAKEHOLDER

13 ADVISORY COMMITTEE.—The Director shall provide a 

14 written response to each recommendation submitted in a 

15 report under subsection (c) to the Director by the Stake16 holder Advisory Committee by not later than 180 days 

17 after the date of submission of such report. 

18 (e) COMMITTEE MEETINGS.— 

19 (1) IN GENERAL.—The Stakeholder Advisory 

20 Committee shall meet not less frequently than 3 

21 times each calendar year. 

22 (2) OPEN TO PUBLIC.—Each meeting of the 

23 Stakeholder Advisory Committee shall be held open 

24 to the public. 


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1 (3) DUTIES OF THE DIRECTOR.—The Director 

2 (or a designee) shall— 

3 (A) be present at each meeting of the 

4 Stakeholder Advisory Committee; 

5 (B) ensure that each meeting is conducted 

6 in accordance with an agenda approved in ad7 vance by the Director; 

8 (C) provide an opportunity for interested 

9 persons— 

10 (i) to file comments before or after 

11 each meeting of the Stakeholder Advisory 

12 Committee; or 

13 (ii) to make statements at such a 

14 meeting, to the extent that time permits; 

15 and 

16 (D) ensure that a high-level representative 

17 from each department and agency from the 

18 Interagency Energy and Economic Transition 

19 Task Force convened pursuant to section 204 is 

20 invited to, and encouraged to attend, each 

21 meeting of the Stakeholder Advisory Com22 mittee. 

23 (f) PUBLIC MEETINGS.— 

24 (1) IN GENERAL.—Not later than 2 years after 

25 the date of enactment of this Act, and each year 


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1 thereafter, the Director, in coordination with the 

2 Stakeholder Advisory Committee, shall hold public 

3 meetings to gather input with respect to the duties 

4 of the Office of Energy and Economic Transition 

5 and implementation of this title. 

6 (2) OUTREACH TO ADVERSELY AFFECTED COM7 MUNITIES.—The Director, in advance of the meet8 ings described in subsection (a), shall hold meetings 

9 in multiple adversely affected communities to pro10 vide meaningful community involvement opportuni11 ties. 

12 (3) COORDINATION WITH COMMUNITY-BASED

13 TRANSITION HUBS.—The Director, in advance of the 

14 meetings described in subsection (a), shall coordi15 nate and solicit comments from entities receiving 

16 grants under section 207. 

17 (g) TRAVEL EXPENSES.—A member of the Stake18 holder Advisory Committee may be allowed travel ex19 penses, including per diem in lieu of subsistence, at such 

20 rate as the Director determines to be appropriate while 

21 away from the home or regular place of business of the 

22 member in the performance of the duties of the Stake23 holder Advisory Committee, including participation in a 

24 public meeting pursuant to subsection (f). 


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1 (h) DURATION.—The Stakeholder Advisory Com2 mittee shall remain in existence unless otherwise provided 

3 by law. 

4 SEC. 206. ASSISTANCE FOR ADVERSELY AFFECTED COMMU5 NITIES. 

6 (a) IN GENERAL.—The Director shall establish a pro7 gram to provide assistance to eligible local government en8 tities, including making payments to temporarily replace 

9 eligible local revenues of such entities, using amounts 

10 made available to the Director in the Worker and Commu11 nity Assistance Fund. 

12 (b) REQUIREMENTS.—In implementing the program 

13 in subsection (a), the Director shall— 

14 (1) identify problems of counties, regions, met15 ropolitan areas, Tribal Governments, and commu16 nities that result from the cessation of operations by 

17 impacted employers; 

18 (2) use and maintain a uniform socioeconomic 

19 impact analysis; 

20 (3) apply consistent policies, practices, and pro21 cedures in the administration of Federal programs 

22 that are used to assist counties, Tribal Governments, 

23 regions, metropolitan areas, communities, and busi24 nesses; 


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1 (4) encourage effective Federal, State, Tribal, 

2 county, regional, metropolitan, and community co3 operation and involvement of public interest groups, 

4 labor organizations, and private sector organizations 

5 in community adjustment activities; 

6 (5) serve as a clearinghouse to exchange infor7 mation among Federal, State, Tribal, county, re8 gional, metropolitan, and community officials in9 volved in community adjustment activities. Such in10 formation may include reports, studies, best prac11 tices, technical information, and sources of public 

12 and private financing; and 

13 (6) support planning activities of counties, 

14 Tribal Governments, regions, metropolitan areas, 

15 and communities to promote diversification of local 

16 economies. 

17 (c) COMMUNITY ADJUSTMENTS TO ELIGIBLE LOCAL

18 GOVERNMENT ENTITIES.—The Director shall make an19 nual payments under this section to eligible local govern20 ment entities to replace eligible local revenues due to the 

21 cessation of operations by impacted employers located 

22 within the jurisdiction of such local government entities. 

23 (d) ORDER OF PAYMENT.—The date of submission 

24 of an eligible local government entity’s application for as25 sistance shall establish the order in which assistance is 


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1 paid to program applicants, except that in no event shall 

2 assistance be paid to a local government entity until such 

3 time that an impacted employer has been closed. Any local 

4 government entity seeking assistance under this section 

5 shall submit an affidavit to the Director that an impacted 

6 employer has ceased operating and an estimation of eligi7 ble local revenues. After receipt of such an affidavit under 

8 this subsection, the Director shall confirm such informa9 tion. 

10 (e) CONDITIONS ON PAYMENTS AND ASSISTANCE.— 

11 An eligible local government entity shall— 

12 (1) be eligible for not more than one payment 

13 each fiscal year under this section; and 

14 (2) not receive payments under this section for 

15 more than 8 fiscal years. 

16 (f) DETERMINATION OF PAYMENT AMOUNT.—The 

17 amount of a payment under this section shall be deter18 mined by the Director based on the eligible local revenues 

19 from one or more impacted employers to an eligible local 

20 government entity equal to— 

21 (1) 90 percent of eligible local revenues in the 

22 first and second years; 

23 (2) 75 percent of eligible local revenues in the 

24 third and fourth years; 


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1 (3) 50 percent of eligible local revenues in the 

2 fifth and sixth years; and 

3 (4) 25 percent of eligible local revenues in the 

4 seventh and eighth years. 

5 (g) ADJUSTMENT OF PAYMENT AMOUNTS.—Not6 withstanding subsection (f), if the Director determines 

7 that the total amount of payments to eligible local govern8 ment entities in any year would exceed the amount of 

9 funding made available to carry out this section for that 

10 year, the Director may reduce each eligible local govern11 ment entity’s payment on a pro rata basis. 

12 (h) REPORT TO THE DIRECTOR.—An eligible local 

13 government entity receiving payment under this section 

14 shall be required to submit an annual report to the Direc15 tor explaining the use of payments, including a description 

16 of funding used for— 

17 (1) infrastructure; 

18 (2) telecommunications; 

19 (3) education; 

20 (4) health care; 

21 (5) public safety, including police, fire, emer22 gency response, or other community support serv23 ices; 

24 (6) drinking water and wastewater services; 

25 (7) economic development and diversification; 


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1 (8) employment training, counseling, and place2 ment services for dislocated workers; and 

3 (9) counseling and other social services for dis4 located workers. 

5 (i) COMMUNITY ADJUSTMENTS, ECONOMIC DEVEL6 OPMENT, AND ECONOMIC DIVERSIFICATION PLANNING.— 

7 The Director may make grants and supplement other Fed8 eral funds in order to assist a county, municipality, school 

9 district, special district, or Tribal Government in planning 

10 for community adjustments, economic development, and 

11 economic diversification even if such entity is not currently 

12 eligible for assistance under this section if the Director 

13 determines that there exists a reasonable likelihood that 

14 such entity may become eligible in the future. 

15 (j) AUTHORIZATION OF APPROPRIATIONS.—There 

16 are authorized to be appropriated such sums as are nec17 essary for carrying out this section. 

18 (k) DEFINITIONS.—In this section: 

19 (1) ELIGIBLE LOCAL GOVERNMENT ENTITY.— 

20 The term ‘‘eligible local government entity’’ means a 

21 county, municipality, school district, special district, 

22 or Tribal Government that has one or more im23 pacted employers located within the jurisdiction of 

24 such entity that have ceased operations within the 2 

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1 rector, resulting in at least a 25 percent reduction 

2 in total revenues from the real property tax collec3 tions, royalties, lease payments, transaction privilege 

4 taxes and sales taxes, or payments in lieu of taxes 

5 owed to such entity. 

6 (2) ELIGIBLE LOCAL REVENUES.—The term 

7 ‘‘eligible local revenues’’ means the amount of real 

8 property taxes, royalty or lease payments, trans9 action privilege taxes and sales taxes, and payments 

10 in lieu of taxes owed by one or more impacted em11 ployers to a county, municipality, school district, 

12 special district, or Tribal Government, based on the 

13 average annual amount owed by such an impacted 

14 employer for the 3 years prior to the cessation of op15 erations by such impacted employer. 

16 SEC. 207. COMMUNITY-BASED TRANSITION HUB PROGRAM. 

17 (a) IN GENERAL.—The Director shall establish a pro18 gram to award grants to entities described in subsection 

19 (b), to be known as Community-Based Transition Hubs, 

20 to carry out the activities described in subsection (d), 

21 using amounts made available to the Director in the 

22 Worker and Community Assistance Fund. 

23 (b) ELIGIBILITY.—To be eligible to receive a grant 

24 under subsection (a), an entity shall demonstrate to the 

25 Director that the entity— 


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1 (1) has existing relationships, or could readily 

2 establish relationships, with local employers and em3 ployees, county, municipal, and Tribal governments, 

4 local and regional economic development and plan5 ning organizations, workforce development, edu6 cational, and job training resources, economic devel7 opment organizations, community organizations that 

8 provide social services, and other organizations de9 termined appropriate by the Director; 

10 (2) is capable of carrying out the duties de11 scribed in subsection (d); 

12 (3) can meet the standards described in sub13 section (e); and 

14 (4) can provide information consistent with the 

15 standards developed under subsection (f). 

16 (c) PRIORITIES.—In awarding grants under this sec17 tion, the Director shall prioritize grants to entities located 

18 in communities that— 

19 (1) receive assistance under section 206; or 

20 (2) the Director determines there is a reason21 able likelihood may receive assistance under section 

22 206 within 5 years. 

23 (d) DUTIES.—An entity that receives a grant under 

24 this section shall— 


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1 (1) coordinate with the Office of Energy and 

2 Economic Transition and relevant Federal depart3 ments and agencies regarding the latest information, 

4 financial and technical assistance opportunities, and 

5 best practices to support workers and communities 

6 adversely affected by the United States energy tran7 sition to net-zero greenhouse gas emissions; 

8 (2) provide capacity-building support and tech9 nical assistance, including grant writing assistance, 

10 to local leaders and organizations, including elected 

11 officials, community leaders, business owners, and 

12 labor leaders, to facilitate community-driven plan13 ning processes and on-going program development 

14 and implementation related to assistance to dis15 placed workers and economic development and diver16 sification; 

17 (3) advise communities that apply for assist18 ance under this title or under other Federal and 

19 State programs, including providing guidance on the 

20 procedures and deadlines for applying or petitioning 

21 for such assistance; 

22 (4) conduct public education activities, includ23 ing outreach to adversely affected workers with re24 spect to services and assistance available through 

25 local, State, and Federal programs; 


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1 (5) provide information related to, and when 

2 appropriate, facilitate enrollment in— 

3 (A) training, employment counseling, em4 ployment opportunities, and placement services 

5 for adversely affected workers, available in local 

6 and regional areas, including information on 

7 how to apply for such training and services; 

8 (B) training programs and other services 

9 provided by a State pursuant to title I of the 

10 Workforce Investment Act of 1998 (29 U.S.C. 

11 2801 et seq.) and available in local and regional 

12 areas, including information on how to apply 

13 for such training; 

14 (C) educational opportunities and informa15 tion related financial aid, including referring 

16 workers to educational opportunity centers de17 scribed in section 402F of the Higher Edu18 cation Act of 1965 (20 U.S.C. 1070a–16), 

19 where applicable; 

20 (D) short-term prevocational services, in21 cluding development of learning skills, commu22 nications skills, interviewing skills, personal 

23 maintenance skills, and professional conduct to 

24 prepare individuals for employment or training; 

25 and 


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1 (E) support services in local and regional 

2 areas, including services related to childcare, 

3 personal counseling (including substance abuse 

4 treatment, suicide prevention, and mental 

5 health care), family counseling, bankruptcy and 

6 financial counseling, transportation, dependent 

7 care, housing assistance, and need-related pay8 ments; 

9 (6) provide individual employment counseling 

10 for adversely affected workers, including develop11 ment of an individual employment plan to identify 

12 employment goals and objectives, and appropriate 

13 training to achieve those goals and objectives, or in14 formation to obtain such counseling in local and re15 gional areas; 

16 (7) provide employment statistics information, 

17 including the provision of accurate information relat18 ing to local, regional, and national labor market 

19 areas, including— 

20 (A) job vacancy listings in such labor mar21 ket areas; 

22 (B) information on jobs skills necessary to 

23 obtain jobs identified in job vacancy listings de24 scribed in subparagraph (A); 


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1 (C) information relating to local occupa2 tions that are in demand and earnings potential 

3 of such occupations; and 

4 (D) skills requirements for local occupa5 tions described in subparagraph (C); and 

6 (8) provide information in a manner that is cul7 turally and linguistically appropriate to the needs of 

8 the population being served. 

9 (e) STANDARDS.—The Director shall establish stand10 ards for grant recipients under this section, including pro11 visions to ensure that any entity that receives a grant is 

12 qualified to engage in the activities described in this sec13 tion. 

14 (f) FAIR AND IMPARTIAL INFORMATION AND SERV15 ICES.—The Director, in consultation with States, Tribal 

16 Governments, and relevant Federal agencies, shall develop 

17 standards to ensure that information made available by 

18 grant recipients under this section is accurate and shall 

19 provide such entities with relevant information and tech20 nical assistance to enable grant recipients under this sec21 tion to better perform the duties in subsection (d). 

22 (g) LIMITATIONS ON GRANTS.— 

23 (1) PERIOD.—In carrying out this section, the 

24 Director shall ensure that the total period of a grant 

25 does not exceed 6 years. 


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1 (2) AMOUNT.—In carrying out this section, the 

2 Director shall ensure that the total amount awarded 

3 to an entity during the total period of the grant does 

4 not exceed $12,000,000. 

5 (h) AUTHORIZATION OF APPROPRIATIONS.—There is 

6 authorized to be appropriated such sums as are necessary 

7 for carrying out this section. 

8 SEC. 208. ASSISTANCE FOR ADVERSELY AFFECTED WORK9 ERS. 

10 (a) IN GENERAL.—Using amounts made available to 

11 the Secretary of Labor in the Worker and Community As12 sistance Fund, the Secretary of Labor shall provide assist13 ance to each eligible adversely affected worker in accord14 ance with this section. 

15 (b) PETITIONS.— 

16 (1) FILING.— 

17 (A) IN GENERAL.—To be eligible to receive 

18 assistance under this section, a petition shall be 

19 filed with the Secretary and the Governor of the 

20 applicable State, simultaneously, by (or on be21 half of) an adversely affected worker or a group 

22 of adversely affected workers that meets the re23 quirements of subsection (c). 

24 (B) AUTHORIZED ENTITIES.—A petition 

25 under subparagraph (A) may be filed on behalf 


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1 of an individual adversely affected worker or a 

2 group of adversely affected workers by one of 

3 the following: 

4 (i) The certified or recognized union 

5 or other duly authorized representative of 

6 such worker or workers. 

7 (ii) An employer of such worker or 

8 workers. 

9 (iii) A one-stop operator or one-stop 

10 partners (as defined in section 3 of the 

11 Workforce Innovation and Opportunity 

12 Act) including State employment security 

13 agencies. 

14 (iv) A State, or an entity designated 

15 by a State, carrying out rapid response ac16 tivities pursuant to title I of the Workforce 

17 Innovation and Opportunity Act (29 

18 U.S.C. 3111 et seq.). 

19 (C) APPLICABLE GOVERNOR.—For pur20 poses of subparagraph (A), the term ‘‘applicable 

21 State’’ applicable State, when used with respect 

22 to an adversely affected worker or a group of 

23 such workers, means the State in which the em24 ployment site of such worker or workers is lo25 cated. 


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1 (2) ACTION BY THE SECRETARY OF LABOR.— 

2 Upon receipt of a petition filed under paragraph (1), 

3 the Secretary of Labor shall promptly publish notice 

4 in the Federal Register and on the website of the 

5 Department of Labor that the Secretary has re6 ceived, and is reviewing, the petition. 

7 (3) ACTION BY GOVERNORS.—Upon receipt of a 

8 petition filed under paragraph (1), the Governor 

9 shall— 

10 (A) ensure that rapid response activities 

11 and appropriate career services (as described in 

12 section 134 of the Workforce Innovation and 

13 Opportunity Act) authorized under other Fed14 eral laws are made available to each adversely 

15 affected worker covered by the petition to the 

16 extent authorized under such laws; and 

17 (B) assist the Secretary of Labor in the re18 view of the petition by verifying the information 

19 provided under the petition and providing such 

20 other assistance as the Secretary of Labor may 

21 request. 

22 (c) ELIGIBILITY.—An adversely affected worker who 

23 works or has worked at an employment site of an impacted 

24 employer or a group of adversely affected workers from 

25 the same employment site of an impacted employer shall 


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1 be certified by the Secretary of Labor as eligible to receive 

2 assistance under this section if the Secretary determines 

3 that the petition filed under subsection (b) by or on behalf 

4 of such individual or group demonstrates that— 

5 (1) such individual worker or each individual 

6 worker in such group is an adversely affected worker 

7 who has been (or who has been at risk to be) totally 

8 separated or partially separated from employment 

9 with such impacted employer for not longer than the 

10 1-year period ending on the date on which such peti11 tion is filed; 

12 (2) a significant number or percentage of the 

13 workers at such employment site are adversely af14 fected workers; and 

15 (3) the sales, production, or delivery of goods or 

16 services at such employment site has decreased as a 

17 result of any requirement of title VII of the Clean 

18 Air Act, as added by this Act, which may be dem19 onstrated by evidence— 

20 (A) in the case of a facility of such em21 ployer that mines, produces, processes, or uti22 lizes fossil fuels to generate electricity, that the 

23 shift from reliance upon fossil fuels to other 

24 sources of energy has resulted in the closing of 

25 such facility or in the partial separation or total 


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1 separation of a significant number or percent2 age of workers at such employment site; 

3 (B) in the case of a manufacturing facility, 

4 of a substantial increase in the cost of energy 

5 and other inputs required for such facility to 

6 produce items whose prices are competitive in 

7 the marketplace, and such cost increase is not 

8 significantly offset by emission allowance alloca9 tion to the facility pursuant to title VII of the 

10 Clean Air Act, as added by this Act; or 

11 (C) of other documented occurrences of 

12 such decreases at such employment site that the 

13 Secretary of Labor determines are indicators of 

14 an adverse impact on the industry in which 

15 such employer is primarily engaged as a result 

16 of any requirement of title VII of the Clean Air 

17 Act, as added by this Act. 

18 (d) DETERMINATION BY THE SECRETARY OF

19 LABOR.—As soon as possible after the date on which a 

20 petition is filed under subsection (b) and not later than 

21 60 days after that date, the Secretary of Labor, in con22 sultation with the Administrator of the Environmental 

23 Protection Agency, as necessary, shall— 

24 (1) determine whether the worker or group of 

25 workers who filed the petition or on whose behalf 


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1 such a petition was filed meets the requirements of 

2 subsection (c); 

3 (2) upon reaching a determination with respect 

4 to a petition, promptly publish a summary of the de5 termination in the Federal Register and on the 

6 website of the Department of Labor, which shall in7 clude the first date of the total separation or partial 

8 separation (or the risk of total separation or partial 

9 separation) from employment with an impacted em10 ployer of each worker covered by the petition; and 

11 (3) if the Secretary determines that such peti12 tion meets the requirements of subsection (c)— 

13 (A) publish a certification that such work14 er or workers are eligible for the assistance de15 scribed in subsections (e) and (f); and 

16 (B) notify the representatives of the indus17 try in which the worker or workers were em18 ployed, the employer or previous employer of 

19 such worker or workers, and any entity that 

20 filed the petition on behalf of the worker or 

21 workers, of— 

22 (i) the assistance described in sub23 sections (e) and (f); and 

24 (ii) an explanation of how to apply for 

25 such assistance. 


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1 (e) WAGE ADJUSTMENT ASSISTANCE.— 

2 (1) AGREEMENTS WITH STATES.—An adversely 

3 affected worker covered by a certification under sub4 section (d) may be eligible to receive the wage ad5 justment assistance described in this subsection— 

6 (A) if the worker is or was employed in a 

7 State with an agreement described in paragraph 

8 (2), by submitting to such State an application 

9 for such assistance; or 

10 (B) if the worker is or was employed in a 

11 State with no such agreement, by complying 

12 with the regulations issued by the Secretary 

13 pursuant to paragraph (4). 

14 (2) STATE AGREEMENT.—The Secretary of 

15 Labor may enter into an agreement with a State or 

16 State agency, which shall provide for each of the fol17 lowing: 

18 (A) APPLICATIONS.—The State or State 

19 agency shall receive applications from adversely 

20 affected workers pursuant to paragraph (1)(A). 

21 (B) TERMS AND CONDITIONS.—The terms 

22 and conditions for amending, suspending, or 

23 terminating such agreement. 

24 (C) RELATIONSHIP TO UNEMPLOYMENT

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1 ceiving wage adjustment assistance under this 

2 subsection shall not be eligible for unemploy3 ment insurance otherwise payable to such work4 er under the laws of the State. 

5 (D) RESPONSIBILITIES OF COOPERATING

6 AGENCIES.—The State or State agency shall 

7 perform outreach to adversely affected workers 

8 in the State covered by a certification under 

9 subsection (d) with respect to the assistance 

10 available to such workers under this subsection. 

11 (E) STATE FUNDS.—The Secretary shall 

12 provide funds to the State or State agency to 

13 provide the assistance described in this sub14 section, and in addition to such funds, the State 

15 shall receive a payment from the Secretary in 

16 an amount that is equal to 15 percent of the 

17 amount of such funds for administrative ex18 penses, including— 

19 (i) reviewing petitions under sub20 section (b)(3); 

21 (ii) collecting, validating, and report22 ing data required under this section; 

23 (iii) providing information and em24 ployment services; and 


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1 (iv) administering wage adjustments 

2 under this subsection. 

3 (3) WAGE ADJUSTMENT ASSISTANCE.— 

4 (A) ELIGIBILITY.—Payment of a wage ad5 justment assistance shall be made to an ad6 versely affected worker covered by a certifi7 cation published by the Secretary of Labor pur8 suant to subsection (d) who files an application 

9 with a State or State agency under paragraph 

10 (1) for such assistance for any month of total 

11 separation or partial separation from employ12 ment with an impacted employer, if the fol13 lowing conditions are met: 

14 (i) The first month of such total sepa15 ration or partial separation occurred dur16 ing the period beginning on the date that 

17 is 1 year before, and ending on the date 

18 that is 2 years after, the date of such cer19 tification. 

20 (ii) Such worker had, in the 52-week 

21 period ending with the week in which such 

22 total separation or partial separation first 

23 occurred, at least 26 weeks of full-time em24 ployment or 1,040 hours of part-time em25 ployment with an impacted employer, or, if 


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1 data with respect to weeks of employment 

2 are not available, equivalent amounts of 

3 employment computed under regulations 

4 prescribed by the Secretary of Labor. For 

5 the purposes of this clause, a week shall be 

6 treated as a week of employment in which 

7 such worker— 

8 (I) is on employer-authorized 

9 leave for purposes of vacation, sick10 ness, injury, parental or family leave, 

11 or inactive duty or active duty mili12 tary service for training; 

13 (II) does not work because of a 

14 disability that is compensable under a 

15 workmen’s compensation law or plan 

16 of a State or the United States; 

17 (III) had employment interrupted 

18 in order to serve as a full-time rep19 resentative of a labor organization in 

20 such firm; or 

21 (IV) performs service in the uni22 formed services as such term is de23 fined in section 4303 of title 38, 

24 United States Code. 


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1 (B) INELIGIBILITY FOR CERTAIN OTHER

2 BENEFITS.—An adversely affected worker re3 ceiving a payment under this subsection shall 

4 be ineligible to receive any other form of unem5 ployment insurance for the period in which such 

6 worker is receiving a wage adjustment assist7 ance under this section. 

8 (C) PAYMENTS.— 

9 (i) AMOUNTS.—Payments under this 

10 subsection shall be provided to an indi11 vidual in an amount which, for each month 

12 during an applicable period, is equal to— 

13 (I) the average amount of month14 ly remuneration for employment paid 

15 to such individual during the 12- 

16 month period prior to the first month 

17 of total separation or partial separa18 tion identified in subparagraph (A)(i); 

19 minus 

20 (II) an amount equal to the sum 

21 of— 

22 (aa) any wages received by 

23 such individual with respect to 

24 employment during such month; 

25 plus 


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1 (bb) any payments made to 

2 such individual pursuant to a 

3 Federal benefit program during 

4 such month. 

5 (ii) NOTIFICATION.—During the ap6 plicable period, an eligible individual shall 

7 notify the Secretary of Labor or cooper8 ating State agency, if applicable, with re9 spect to any wages, payments, or com10 pensation described in clause (i)(II)(aa). 

11 (iii) APPLICABLE PERIOD.—For pur12 poses of this subsection, the term ‘‘applica13 ble period’’ means, with respect to an indi14 vidual receiving assistance under this sub15 section, the 36-month period subsequent to 

16 the first month of total separation or par17 tial separation identified in subparagraph 

18 (A)(i). 

19 (iv) FREQUENCY.—Any payment to 

20 an eligible individual under this subsection 

21 shall be provided on a basis which is not 

22 less frequent than once per month during 

23 the applicable period. 

24 (v) ADJUSTMENT FOR INFLATION.— 

25 In the case of a calendar year beginning 


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1 after the date that the employment of an 

2 eligible individual is terminated, the dollar 

3 amount of the payment determined under 

4 subsection (a) shall be increased by an 

5 amount equal to— 

6 (I) such dollar amount, multi7 plied by 

8 (II) the cost-of-living adjustment 

9 determined under section 1(f)(3) of 

10 the Internal Revenue Code of 1986 

11 for such calendar year, determined by 

12 substituting ‘‘calendar year 2023’’ for 

13 ‘‘calendar year 2016’’ in subpara14 graph (A)(ii) thereof. 

15 (vi) TAX TREATMENT.—For purposes 

16 of the Internal Revenue Code of 1986, the 

17 amount of any payment provided to a 

18 qualified individual under this subsection 

19 shall be included in gross income and 

20 treated as wages (as defined in section 

21 3121(a) of such Code). 

22 (4) ADMINISTRATION ABSENT STATE AGREE23 MENT.—For any State where there is no agreement 

24 in force between a State or its agency under para25 graph (1), the Secretary of Labor shall promulgate 


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1 regulations for the performance of all necessary 

2 functions under this subsection. 

3 (f) OTHER ASSISTANCE.— 

4 (1) HEALTH INSURANCE CONTINUATION.—Not 

5 later than 1 year after the date of enactment of this 

6 section, the Secretary of Labor shall prescribe regu7 lations to provide, for a period of no longer than 36 

8 months, 80 percent of the monthly premium of any 

9 health insurance coverage that an adversely affected 

10 worker who is covered by a certification published 

11 pursuant to subsection (d) was receiving through 

12 such worker’s employer prior to the separation from 

13 employment, to be paid to any health care insurance 

14 plan designated by the adversely affected worker re15 ceiving assistance under this section. 

16 (2) EDUCATIONAL BENEFITS.—The Secretary 

17 of Labor, in consultation with the Secretary of 

18 Labor of Education, shall carry out a program of 

19 educational assistance for any eligible adversely af20 fected worker who is covered by a certification pub21 lished pursuant to subsection (d) and child of such 

22 worker that is comparable to the program of edu23 cation assistance administered by the Secretary of 

24 Labor of Veterans Affairs under chapter 33 of title 

25 38, United States Code, except that an eligible workVerDate Sep 11 2014 01:45 Aug 24, 2024 Jkt 049200 PO 00000 Frm 00178 Fmt 6652 Sfmt 6201 E:\BILLS\H9230.IH H9230

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1 er, and each child of such worker, may receive the 

2 educational assistance provided under the program. 

3 (3) EMPLOYMENT SERVICES AND TRAINING.— 

4 The Secretary of Labor shall provide, directly or 

5 through agreements with the States similar to agree6 ments described in subsection (e), to adversely af7 fected workers covered by a certification under this 

8 section information related to, and, when appro9 priate, facilitate enrollment in— 

10 (A) training, employment counseling, em11 ployment opportunities, and placement services 

12 for adversely affected workers, available in local 

13 and regional areas, including information on 

14 how to apply for such training and services; 

15 (B) training programs and other services 

16 provided by a State pursuant to title I of the 

17 Workforce Innovation and Opportunity Act (29 

18 U.S.C. 3111 et seq.) and available in local and 

19 regional areas, including information on how to 

20 apply for such training; 

21 (C) educational opportunities and informa22 tion related financial aid, including referring 

23 workers to educational opportunity centers de24 scribed in section 402F of the Higher Edu25 cation Act of 1965 (20 U.S.C. 1070a–16); 


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1 (D) short-term prevocational services, in2 cluding development of learning skills, commu3 nications skills, interviewing skills, personal 

4 maintenance skills, and professional conduct to 

5 prepare individuals for employment or training; 

6 and 

7 (E) support services in local and regional 

8 areas, including services related to childcare, 

9 personal counseling (including substance abuse 

10 treatment, suicide prevention, and mental 

11 health care), family counseling, bankruptcy and 

12 financial counseling, transportation, dependent 

13 care, housing assistance, and need-related pay14 ments. 

15 (g) FRAUD AND RECOVERY OF OVERPAYMENTS.— 

16 (1) RECOVERY OF PAYMENTS TO WHICH AN IN17 DIVIDUAL WAS NOT ENTITLED.—If the Secretary of 

18 Labor or a court of competent jurisdiction deter19 mines that any person has received any payment 

20 under this section to which the individual was not 

21 entitled, such individual shall be liable to repay such 

22 amount to the Secretary of Labor or to the State 

23 that made such payment pursuant to an agreement 

24 under subsection (e), except that the Secretary of 


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1 Labor or such State may waive such repayment if 

2 the Secretary or the State determines that— 

3 (A) the payment was made without fault 

4 on the part of such individual; and 

5 (B) requiring such repayment would cause 

6 a financial hardship for the individual (or the 

7 individual’s household, if applicable) when tak8 ing into consideration the income and resources 

9 reasonably available to the individual (or house10 hold) and other ordinary living expenses of the 

11 individual (or household). 

12 (2) MEANS OF RECOVERY.—Unless an overpay13 ment is otherwise recovered, or waived under para14 graph (1), the Secretary of Labor shall recover the 

15 overpayment by deductions from any sums payable 

16 to such person under this section, under any Federal 

17 unemployment compensation law, or other Federal 

18 law administered by the Secretary of Labor which 

19 provides for the payment of assistance with respect 

20 to unemployment. Any amount recovered under this 

21 section shall be returned to the Treasury of the 

22 United States. 

Æ 


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