I 

116TH CONGRESS 

2D SESSION H. R. 9054 

To advance clean power technology development and use through innovation 

and clean energy standards, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 28, 2020 

Mr. MCKINLEY (for himself and Mr. SCHRADER) introduced the following bill; 

which was referred to the Committee on Energy and Commerce, and in 

addition to the Committees on Science, Space, and Technology, Ways and 

Means, Natural Resources, Transportation and Infrastructure, and Oversight and Reform, 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 advance clean power technology development and use 

through innovation and clean energy standards, 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; PURPOSES. 

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

5 ‘‘Clean Energy Future Through Innovation Act of 2020’’. 

6 (b) PURPOSES.—The purposes of this Act are— 

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1 (1) to further develop, demonstrate, and deploy 

2 a broad range of advanced low- and zero-carbon 

3 power technologies, including technologies related to 

4 the generation, storage, transmission, security, resil5 ience, and efficient use of electric power; and 

6 (2) to build a competitive market for advanced 

7 low- and zero-carbon technologies and a robust 

8 workforce, supply chain, and related legal, commer9 cial, and physical infrastructure. 

10 SEC. 2. DEFINITIONS; TABLE OF CONTENTS. 

11 (a) DEFINITIONS.—Except as otherwise provided, in 

12 this Act: 

13 (1) SECRETARY.—The term ‘‘Secretary’’ means 

14 the Secretary of Energy. 

15 (2) DEPARTMENT.—The term ‘‘Department’’ 

16 means the Department of Energy. 

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

18 this Act is as follows: 

Sec. 1. Short title; purposes. 

Sec. 2. Definitions; table of contents. 

TITLE I—CARBON CAPTURE, UTILIZATION, AND STORAGE 

Subtitle A—Research, Development, and Demonstration for Carbon Capture, 

Utilization, and Storage Technologies 

Sec. 111. Fossil energy objectives. 

Sec. 112. Carbon capture technologies. 

Sec. 113. Carbon storage validation and testing. 

Sec. 114. Carbon utilization. 

Sec. 115. Advanced energy systems. 

Subtitle B—Deployment of Carbon Capture, Utilization, and Storage With 

Commercial-Scale Electricity Generation Facilities 

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Sec. 121. Deployment of carbon capture, utilization, and storage technology 

with commercial-scale electricity generation facilities. 

Subtitle C—Federal Support for Commercial Deployment of Carbon Capture, 

Utilization, and Storage 

Sec. 131. Enhancement of carbon dioxide sequestration credit. 

Sec. 132. Reform of loan guarantee program. 

Sec. 133. Private activity bonds for carbon dioxide capture facilities. 

Sec. 134. Extension of publicly traded partnership ownership structure. 

Sec. 135. Production tax credit for certain electricity generation using carbon 

capture utilization and storage. 

Sec. 136. Elective payment of credit. 

Subtitle D—Support for Carbon Dioxide Transportation and Sequestration 

Infrastructure 

Sec. 141. Securing geologic reservoirs for carbon dioxide. 

Sec. 142. Financial assistance for carbon dioxide sequestration infrastructure 

development. 

Sec. 143. Geologic carbon dioxide sequestration utilities. 

Sec. 144. Coordinated Federal permitting for carbon dioxide pipeline and sequestration facilities. 

Sec. 145. Interagency task force on carbon dioxide pipelines. 

TITLE II—INNOVATION IN RENEWABLE ENERGY, ENERGY 

EFFICIENCY, AND STORAGE 

Sec. 201. Establishment of technology performance and cost targets. 

Sec. 202. Advanced innovation and commercialization program. 

Sec. 203. Updating mobile homes. 

Sec. 204. Investment tax credits for energy battery storage, offshore wind, and 

certain hydropower technologies. 

Sec. 205. Extension of production tax credit for solar and on-shore wind. 

Sec. 206. Renewal of qualifying advanced energy project credit. 

Sec. 207. Performance-based tax credits for commercial and residential buildings. 

Sec. 208. Extension of publicly traded partnership ownership structure to renewable energy projects. 

Sec. 209. Manufacturer credit for high-efficiency heat pumps and heat pump 

water heaters. 

Sec. 210. Other authorizations of appropriations. 

TITLE III—EXISTING AND ADVANCED NUCLEAR POWER PLANTS 

Sec. 301. Zero-emissions credit program. 

Sec. 302. Investment tax credit for nuclear energy property. 

Sec. 303. Expanding Federal clean electricity purchasing requirements. 

Sec. 304. Modernizing the Nuclear Regulatory Commission. 

Sec. 305. Demonstration and early deployment of advanced nuclear reactors. 

Sec. 306. Advanced nuclear fuel security program. 

Sec. 307. Authorization of appropriations for loan guarantees for advanced nuclear facilities. 

Sec. 308. Expanding the production tax credit for nuclear power. 

Sec. 309. Authorizations of appropriations for innovation in nuclear power. 

TITLE IV—CLEAN ELECTRICITY STANDARD 

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Sec. 401. Certification of cost-effective market penetration of clean electricity 

technologies. 

Sec. 402. Federal clean electricity standard. 

Sec. 403. Regional clean electricity planning models. 

Sec. 404. Stand-by emission performance standards. 

1 TITLE I—CARBON CAPTURE, 

2 UTILIZATION, AND STORAGE 

3 Subtitle A—Research, Develop4 ment, and Demonstration for 

5 Carbon Capture, Utilization, 

6 and Storage Technologies 

7 SEC. 111. FOSSIL ENERGY OBJECTIVES. 

8 Section 961 of the Energy Policy Act of 2005 (42 

9 U.S.C. 16291) is amended— 

10 (1) in subsection (a), by adding at the end the 

11 following: 

12 ‘‘(8) Improving the conversion, use, and storage 

13 of carbon dioxide produced from fossil fuels. 

14 ‘‘(9) Lowering greenhouse gas emissions for all 

15 fossil fuel production, generation, delivery, and utili16 zation in electricity generation and other industry, to 

17 the maximum extent possible. 

18 ‘‘(10) Preventing, predicting, monitoring, and 

19 mitigating the unintended leaking of carbon dioxide 

20 or other fossil fuel-related emissions into the atmos21 phere. 

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1 ‘‘(11) Developing carbon utilization tech2 nologies, products, and methods, including carbon 

3 use and reuse for commercial application. 

4 ‘‘(12) Developing carbon capture technologies, 

5 including direct air capture technologies.’’; 

6 (2) in subsection (b), by striking paragraphs 

7 (1) through (3) and inserting the following: 

8 ‘‘(1) $2,200,000,000 for fiscal year 2021; 

9 ‘‘(2) $2,200,000,000 for fiscal year 2022; 

10 ‘‘(3) $2,200,000,000 for fiscal year 2023; 

11 ‘‘(4) $2,200,000,000 for fiscal year 2024; and 

12 ‘‘(5) $2,200,000,000 for fiscal year 2025.’’; and 

13 (3) by striking subsections (c) through (e) and 

14 inserting the following: 

15 ‘‘(c) LIMITATION.—None of the funds authorized 

16 under this section may be used for Fossil Energy Environ17 mental Restoration or Import/Export Authorization.’’. 

18 SEC. 112. CARBON CAPTURE TECHNOLOGIES. 

19 (a) CARBON CAPTURE PROGRAM.—Section 962 of 

20 the Energy Policy Act of 2005 (42 U.S.C. 16292) is 

21 amended to read as follows: 

22 ‘‘SEC. 962. CARBON CAPTURE TECHNOLOGIES. 

23 ‘‘(a) IN GENERAL.—The Secretary shall conduct a 

24 program of research, development, demonstration, and 

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1 commercial application of carbon capture technologies. 

2 The program shall advance the development and use of— 

3 ‘‘(1) carbon capture technologies in conjunction 

4 with coal and natural gas utilization in power sys5 tems and industry; 

6 ‘‘(2) innovations to improve the efficiency of, 

7 and decrease emissions at, existing power plants; 

8 ‘‘(3) advanced separation technologies and di9 rect air capture technologies; and 

10 ‘‘(4) carbon capture technologies used in con11 junction with the production from fossil fuel of hy12 drogen or ammonia to be used in power systems. 

13 ‘‘(b) COAL APPLICATIONS.—In conducting the pro14 gram under subsection (a), the Secretary shall devote sub15 stantial resources to carbon capture technologies for coal 

16 applications. 

17 ‘‘(c) LARGE-SCALE PILOTS.— 

18 ‘‘(1) IN GENERAL.—In supporting technology 

19 development activities under this section, the Sec20 retary is encouraged to support large-scale pilot 

21 projects that test carbon capture technologies on 

22 power systems. Support for such large-scale pilot 

23 projects shall be subject to the cost sharing require24 ments in section 988(b). 

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1 ‘‘(2) DEFINITION.—For purposes of this sec2 tion, the term ‘large-scale pilot project’ means a 

3 pilot project that— 

4 ‘‘(A) represents the scale of technology de5 velopment beyond laboratory development and 

6 bench scale testing, but not yet advanced to the 

7 point of being tested under operational condi8 tions at commercial scale; 

9 ‘‘(B) represents the scale of technology 

10 necessary to gain the operational data needed 

11 to understand the technical and performance 

12 risks of the technology before the application of 

13 that technology at commercial scale or in com14 mercial-scale demonstration; and 

15 ‘‘(C) is large enough— 

16 ‘‘(i) to validate scaling factors; and 

17 ‘‘(ii) to demonstrate the interaction 

18 between major components so that control 

19 philosophies for a new process can be de20 veloped and enable the technology to ad21 vance from large-scale pilot plant applica22 tion to commercial-scale demonstration or 

23 application. 

24 ‘‘(d) COST AND PERFORMANCE GOALS.—In carrying 

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1 plication activities under subsection (a), the Secretary 

2 shall consider cost and performance goals, in order to ad3 vance development and deployment of carbon capture 

4 technologies that can become cost competitive in commer5 cial applications. 

6 ‘‘(e) CARBON CAPTURE PILOT TEST CENTERS.— 

7 ‘‘(1) IN GENERAL.—Not later than 1 year after 

8 the date of the enactment of the Clean Energy Fu9 ture Through Innovation Act of 2020, the Secretary 

10 shall award grants to one or more entities for the 

11 operation of Carbon Capture Test Centers (in this 

12 subsection referred to as the ‘Centers’) to provide 

13 unique testing capabilities for innovative power sys14 tem technologies to capture carbon dioxide or other15 wise produce a carbon dioxide stream suitable for 

16 utilization or storage. 

17 ‘‘(2) PURPOSE.—The Centers shall— 

18 ‘‘(A) advance research, development, dem19 onstration, and commercial application of car20 bon capture technologies for power systems; 

21 and 

22 ‘‘(B) test technologies that represent the 

23 scale of technology development beyond labora24 tory testing, but not yet advanced to testing 

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1 under operational conditions at commercial 

2 scale. 

3 ‘‘(3) APPLICATION.—An entity seeking to oper4 ate a Center under this subsection shall submit to 

5 the Secretary an application at such time and in 

6 such manner as the Secretary may require. 

7 ‘‘(4) CRITERIA.—In evaluating applications to 

8 operate the Centers under this subsection, the Sec9 retary shall prioritize grants to applicants that meet 

10 one or more of the following criteria: 

11 ‘‘(A) The applicant has access to existing 

12 or planned research facilities with modular 

13 technology capabilities. 

14 ‘‘(B) The applicant is an institution of 

15 higher education with established expertise in 

16 engineering and design for carbon capture tech17 nologies, or has a partnership with such an in18 stitution. 

19 ‘‘(C) The applicant has access to existing 

20 research and test facilities for precombustion, 

21 postcombustion, or oxy-combustion technologies. 

22 ‘‘(D) The applicant has capability to test 

23 integration of carbon capture technologies with 

24 utility-scale power plants. 

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1 ‘‘(E) Commercial market participants, in2 cluding equipment and technology suppliers and 

3 power generators, are involved in the proposed 

4 Center. 

5 ‘‘(5) CONSIDERATIONS.—In awarding grants 

6 for the operation of the Centers under this sub7 section, the Secretary shall ensure that— 

8 ‘‘(A) the Centers support pilot testing ap9 propriate to diverse regions and resource char10 acteristics; and 

11 ‘‘(B) each Center receiving such a grant 

12 demonstrates unique research capabilities, 

13 unique regional benefits, or new technology de14 velopment opportunities. 

15 ‘‘(6) SCHEDULE.—Each grant to operate a 

16 Center under this subsection shall be awarded for a 

17 term of not more than 5 years, subject to the avail18 ability of appropriations. The Secretary may renew 

19 such 5-year term without limit, subject to a rigorous 

20 merit review. 

21 ‘‘(7) COST SHARING.—The Secretary shall re22 quire cost sharing under this subsection in accord23 ance with section 988(b). 

24 ‘‘(8) TERMINATION.—The Secretary may elimi25 nate a Center during any 5-year term described in 

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1 paragraph (6) if such Center is found to be under2 performing. 

3 ‘‘(f) DEMONSTRATION PROJECTS.— 

4 ‘‘(1) IN GENERAL.—The Secretary may fund 

5 commercial-scale demonstration projects for power 

6 systems that test the scale of technology necessary 

7 for commercial operation, in accordance with this 

8 subsection. 

9 ‘‘(2) ENGINEERING AND DESIGN STUDIES.— 

10 The Secretary is authorized to fund engineering and 

11 design studies for commercial-scale demonstration 

12 projects for power systems in addition to, or in ad13 vance of, issuing an award for a demonstration 

14 project under this subsection. 

15 ‘‘(3) APPLICATION.—An entity seeking an 

16 award to conduct a demonstration project under this 

17 subsection shall submit to the Secretary an applica18 tion at such time and in such manner as the Sec19 retary may require. 

20 ‘‘(4) LIMITATIONS.—The Secretary may only 

21 provide an award under this subsection after review22 ing each application regarding— 

23 ‘‘(A) the financial strength of the appli24 cant; 

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1 ‘‘(B) the construction schedule for the pro2 posed demonstration project; 

3 ‘‘(C) the market risk faced by the tech4 nology to be demonstrated; and 

5 ‘‘(D) the experience of the applicant and 

6 construction contractor with similar projects. 

7 ‘‘(5) REQUIREMENTS.—A demonstration project 

8 funded under this subsection shall— 

9 ‘‘(A) utilize technologies that have com10 pleted pilot-scale testing or the equivalent, as 

11 determined by the Secretary; 

12 ‘‘(B) secure and maintain agreements for 

13 the utilization or sequestration of captured car14 bon dioxide; and 

15 ‘‘(C) upon completion, demonstrate carbon 

16 capture technologies on a power system. 

17 ‘‘(6) COST SHARING.—The Secretary shall re18 quire cost sharing under this subsection in accord19 ance with section 988. 

20 ‘‘(g) DEFINITION OF POWER SYSTEM.—In this sec21 tion, the term ‘power system’ means any electricity gener22 ating unit that utilizes fossil fuels to generate electricity 

23 provided to the electric grid or directly to a consumer. 

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1 ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—For ac2 tivities under this section, there are authorized to be ap3 propriated to the Secretary— 

4 ‘‘(1) $600,000,000 for fiscal year 2021; 

5 ‘‘(2) $600,000,000 for fiscal year 2022; 

6 ‘‘(3) $600,000,000 for fiscal year 2023; 

7 ‘‘(4) $600,000,000 for fiscal year 2024; and 

8 ‘‘(5) $600,000,000 for fiscal year 2025.’’. 

9 (b) GAO STUDY.— 

10 (1) IN GENERAL.—The Comptroller General of 

11 the United States shall conduct a study of the De12 partment’s successes, failures, practices, and im13 provements in carrying out demonstration projects 

14 for carbon capture technologies for power systems. 

15 In conducting the study, the Comptroller General 

16 shall consider, at a minimum— 

17 (A) applicant and contractor qualifications; 

18 (B) project management practices at the 

19 Department; 

20 (C) economic or market changes and other 

21 factors impacting project viability; 

22 (D) completion of third-party agreements, 

23 including power purchase agreements and car24 bon dioxide offtake agreements; 

25 (E) regulatory challenges; and 

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1 (F) construction challenges. 

2 (2) REPORT.—Not later than 3 years after the 

3 date of enactment of this Act, the Comptroller Gen4 eral of the United States shall submit to Congress 

5 a report on the results of the study required under 

6 paragraph (1). 

7 (3) CONSIDERATION.—The Secretary shall con8 sider any relevant recommendations, as determined 

9 by the Secretary, provided in the study required 

10 under paragraph (1), and shall adopt such rec11 ommendations as the Secretary considers appro12 priate. 

13 (4) POWER SYSTEM DEFINED.—In this section, 

14 the term ‘‘power system’’ means any electricity gen15 erating unit that utilizes fossil fuels to generate elec16 tricity provided to the electric grid or directly to a 

17 consumer. 

18 SEC. 113. CARBON STORAGE VALIDATION AND TESTING. 

19 Section 963 of the Energy Policy Act of 2005 (42 

20 U.S.C. 16293) is amended to read as follows: 

21 ‘‘SEC. 963. CARBON STORAGE VALIDATION AND TESTING. 

22 ‘‘(a) CARBON STORAGE.—The Secretary shall carry 

23 out a program of research, development, and demonstra24 tion for carbon storage. The program shall— 

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1 ‘‘(1) in coordination with relevant Federal agen2 cies, develop and maintain mapping tools and re3 sources that assess the capacity of geologic storage 

4 formations in the United States; 

5 ‘‘(2) develop monitoring tools, modeling of geo6 logic formations, and analyses to predict and verify 

7 carbon dioxide containment and account for seques8 tered carbon dioxide in geologic storage sites; 

9 ‘‘(3) research potential environmental, safety, 

10 and health impacts in the event of a leak to the at11 mosphere or to an aquifer, and any corresponding 

12 mitigation actions or responses to limit harmful con13 sequences; 

14 ‘‘(4) evaluate the interactions of carbon dioxide 

15 with formation solids and fluids, including the pro16 pensity of injections to induce seismic activity; 

17 ‘‘(5) assess and ensure the safety of operations 

18 related to geologic sequestration of carbon dioxide; 

19 ‘‘(6) determine the fate of carbon dioxide con20 current with and following injection into geologic 

21 formations; and 

22 ‘‘(7) provide information to State, local, and 

23 Tribal governments, the Environmental Protection 

24 Agency, and other appropriate entities, to support 

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1 cial-scale sequestration operations that ensure the 

2 protection of human health and the environment. 

3 ‘‘(b) GEOLOGIC SETTINGS.—In carrying out research 

4 activities under this section, the Secretary shall consider 

5 a variety of candidate geologic settings, including— 

6 ‘‘(1) operating oil and gas fields; 

7 ‘‘(2) depleted oil and gas fields; 

8 ‘‘(3) residual oil zones; 

9 ‘‘(4) unconventional reservoirs and rock types; 

10 ‘‘(5) unmineable coal seams; 

11 ‘‘(6) deep saline formations; 

12 ‘‘(7) deep geologic systems that may be used as 

13 engineered reservoirs to extract economical quan14 tities of brine from geothermal resources of low per15 meability or porosity; 

16 ‘‘(8) deep geologic systems containing in situ 

17 carbon dioxide mineralization formations; and 

18 ‘‘(9) offshore geologic formations. 

19 ‘‘(c) REGIONAL CARBON SEQUESTRATION PARTNER20 SHIPS.— 

21 ‘‘(1) IN GENERAL.—The Secretary shall carry 

22 out large-scale carbon sequestration demonstrations 

23 for geologic containment of carbon dioxide to collect 

24 and validate information on the cost and feasibility 

25 of commercial deployment of technologies for the 

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1 geologic containment of carbon dioxide. The Sec2 retary may fund new demonstrations or expand the 

3 work completed at one or more of the existing re4 gional carbon sequestration partnerships. 

5 ‘‘(2) DEMONSTRATION COMPONENTS.—Each 

6 demonstration described in paragraph (1) shall in7 clude longitudinal tests involving carbon dioxide in8 jection and monitoring, mitigation, and verification 

9 operations. 

10 ‘‘(3) CLEARINGHOUSE.—The National Energy 

11 Technology Laboratory shall act as a clearinghouse 

12 of shared information and resources for the regional 

13 carbon sequestration partnerships and any new dem14 onstrations funded under this section. 

15 ‘‘(4) REPORT.—Not later than 1 year after the 

16 date of enactment of the Clean Energy Future 

17 Through Innovation Act of 2020, the Secretary shall 

18 provide to Congress a report that— 

19 ‘‘(A) assesses the progress of all regional 

20 carbon sequestration partnerships; 

21 ‘‘(B) identifies the remaining challenges in 

22 achieving carbon sequestration that is reliable 

23 and safe for the environment and public health; 

24 and 

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1 ‘‘(C) creates a roadmap to integrate geo2 logic sequestration sites and carbon utilization 

3 with large sources of carbon dioxide in the 

4 United States economy. 

5 ‘‘(5) LARGE-SCALE CARBON SEQUESTRATION

6 DEMONSTRATION.—For purposes of this subsection, 

7 ‘large-scale carbon sequestration demonstration’ 

8 means the injection of more than 1,000,000 tons of 

9 carbon dioxide annually or injection at a scale that 

10 demonstrates the ability to inject and sequester sev11 eral million metric tons carbon dioxide for at least 

12 10 years. 

13 ‘‘(d) INTEGRATED STORAGE PROJECTS.—The Sec14 retary may carry out a program for purposes of 

15 transitioning the large-scale storage demonstrations under 

16 subsection (c) into integrated, commercial storage com17 plexes. The program shall focus on— 

18 ‘‘(1) qualifying geologic storage sites in order to 

19 accept large volumes of carbon dioxide acceptable for 

20 commercial contracts; 

21 ‘‘(2) understanding the technical and commer22 cial viability of storage sites; 

23 ‘‘(3) developing the qualification processes that 

24 will be necessary for a diverse range of geologic stor25 age sites to commercially accept carbon dioxide; and 

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1 ‘‘(4) any other activities the Secretary deems 

2 necessary to transition the large-scale demonstration 

3 storage projects into commercial ventures. 

4 ‘‘(e) COST SHARING.—The Secretary shall require 

5 cost sharing under this section in accordance with section 

6 988. 

7 ‘‘(f) FEDERAL DATA COLLECTION.—The Secretary, 

8 in coordination with other Federal agencies including the 

9 United States Geological Survey, shall continue and ex10 pand ongoing Federal data collection and analysis activi11 ties related to carbon dioxide storage, economics, and spa12 tial relationships on a local and regional scale, in coordina13 tion with State and regional entities. 

14 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—For ac15 tivities under this section, there are authorized to be ap16 propriated to the Secretary— 

17 ‘‘(1) $250,000,000 for fiscal year 2021; 

18 ‘‘(2) $250,000,000 for fiscal year 2022; 

19 ‘‘(3) $250,000,000 for fiscal year 2023; 

20 ‘‘(4) $250,000,000 for fiscal year 2024; and 

21 ‘‘(5) $250,000,000 for fiscal year 2025.’’. 

22 SEC. 114. CARBON UTILIZATION. 

23 (a) PROGRAM.—Subtitle F of title IX of the Energy 

24 Policy Act of 2005 (42 U.S.C. 16291 et seq.) is amended 

25 by adding at the end the following: 

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1 ‘‘SEC. 969. CARBON UTILIZATION. 

2 ‘‘(a) IN GENERAL.—The Secretary shall carry out a 

3 program of research, development, and demonstration for 

4 carbon utilization. The program shall— 

5 ‘‘(1) assess and monitor potential changes in 

6 life cycle carbon dioxide emissions, and other envi7 ronmental safety indicators of new technologies, 

8 practices, processes, or methods, used in enhanced 

9 hydrocarbon recovery; 

10 ‘‘(2) identify and evaluate novel uses for car11 bon, including the conversion of carbon dioxide for 

12 commercial and industrial products, such as— 

13 ‘‘(A) chemicals; 

14 ‘‘(B) plastics; 

15 ‘‘(C) building materials; 

16 ‘‘(D) fuels; 

17 ‘‘(E) cement; or 

18 ‘‘(F) products of coal utilization in power 

19 systems (as such term is defined in section 

20 962(e)), or other applications; and 

21 ‘‘(3) identify and develop alternative uses for 

22 coal, including products derived from carbon engi23 neering, carbon fiber, and coal conversion methods. 

24 ‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—For ac25 tivities under this section, there are authorized to be ap26 propriated to the Secretary— 

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1 ‘‘(1) $75,000,000 for fiscal year 2021; 

2 ‘‘(2) $75,000,000 for fiscal year 2022; 

3 ‘‘(3) $75,000,000 for fiscal year 2023; 

4 ‘‘(4) $75,000,000 for fiscal year 2024; and 

5 ‘‘(5) $75,000,000 for fiscal year 2025.’’. 

6 (b) STUDY.—No later than one year following the 

7 date of enactment of the Clean Energy Future Through 

8 Innovation Act of 2020, the Secretary shall enter into an 

9 agreement with the National Academies to conduct a 

10 study assessing the barriers and opportunities related to 

11 commercializing the utilization of carbon dioxide in the 

12 United States. Such study shall— 

13 (1) analyze the technical feasibility and related 

14 challenges to commercial utilization of carbon diox15 ide, including— 

16 (A) creating a national system of carbon 

17 dioxide pipelines; 

18 (B) mitigating environmental impacts; and 

19 (C) regional economic challenges and op20 portunities; 

21 (2) identify potential markets, industries, or 

22 sectors that may benefit from greater access to com23 mercial carbon dioxide; 

24 (3) assess the current state of infrastructure 

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1 tion of safe and reliable carbon dioxide transpor2 tation, utilization, and storage; 

3 (4) estimate the economic impact of a well-inte4 grated national carbon dioxide pipeline system; 

5 (5) assess the global status and progress of car6 bon utilization technologies (both chemical and bio7 logical) in practice today that utilize waste carbon 

8 (including carbon dioxide, carbon monoxide, meth9 ane, and biogas) from power generation, biofuels 

10 production, and other industrial processes; 

11 (6) identify emerging technologies and ap12 proaches for carbon utilization that show promise 

13 for scale-up, demonstration, deployment, and com14 mercialization; 

15 (7) analyze the factors associated with making 

16 carbon utilization technologies viable at a commer17 cial scale, including carbon waste stream availability, 

18 economics, market capacity, energy, and lifecycle re19 quirements; 

20 (8) assess the major technical challenges associ21 ated with increasing the commercial viability of car22 bon reuse technologies, and identify the research and 

23 development questions that will address those chal24 lenges; 

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1 (9) assess current research efforts, including 

2 basic, applied, engineering, and computational, that 

3 are addressing these challenges and identify gaps in 

4 the current research portfolio; and 

5 (10) develop a comprehensive research agenda 

6 that addresses both long- and short-term research 

7 needs and opportunities. 

8 SEC. 115. ADVANCED ENERGY SYSTEMS. 

9 Subtitle F of title IX of the Energy Policy Act of 

10 2005 (42 U.S.C. 16291 et seq.) is further amended by 

11 adding at the end the following: 

12 ‘‘SEC. 969A. ADVANCED ENERGY SYSTEMS. 

13 ‘‘(a) IN GENERAL.—The Secretary shall carry out a 

14 program of research, development, demonstration, and 

15 commercial application of technologies that represent a 

16 significant change in the methods used to generate elec17 tricity from fuels and that will enable a step change in 

18 performance, efficiency, and cost of electricity, and that 

19 reduce emissions from fossil fuel power generation in the 

20 following areas: 

21 ‘‘(1) High-efficiency turbines for any advanced 

22 power system that will lead to natural gas turbine 

23 combined cycle efficiency of 67 percent or combus24 tion turbine efficiency of 50 percent. 

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1 ‘‘(2) Supercritical carbon dioxide, with an em2 phasis on developing directly fired and indirectly 

3 fired cycles in the next 10 years. 

4 ‘‘(3) Advanced combustion systems, including 

5 oxy-combustion systems and chemical looping. 

6 ‘‘(4) Gasification systems to enable carbon cap7 ture, improve efficiency, and reduce capital and op8 erating costs. 

9 ‘‘(5) Thermal cycling with ramping or rapid 

10 black start capabilities that do not compromise effi11 ciency or environmental performance. 

12 ‘‘(6) Small-scale and modular technologies with 

13 reduced carbon outputs or carbon capture that can 

14 support incremental power generation capacity 

15 needs. 

16 ‘‘(7) Turbines and other technology for the use 

17 of hydrogen and ammonia generated from fossil 

18 fuels for power generation. 

19 ‘‘(b) PRIORITY.—In carrying out the program under 

20 subsection (a), the Secretary shall give priority to poten21 tially transformational technologies that would enable very 

22 substantial improvements in performance, efficiency, or 

23 cost of electricity as compared to the technology in exist24 ence on the date of enactment of this section. 

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1 ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—For ac2 tivities under this section, there are authorized to be ap3 propriated to the Secretary $1,275,000,000 for each of fis4 cal years 2021 through 2025.’’. 

5 Subtitle B—Deployment of Carbon 

6 Capture, Utilization, and Stor7 age With Commercial-Scale 

8 Electricity Generation Facilities 

9 SEC. 121. DEPLOYMENT OF CARBON CAPTURE, UTILIZA10 TION, AND STORAGE TECHNOLOGY WITH 

11 COMMERCIAL-SCALE ELECTRICITY GENERA12 TION FACILITIES. 

13 (a) IN GENERAL.—Subtitle B of title IV of the En14 ergy Policy Act of 2005 (42 U.S.C. 15971 et seq.) is 

15 amended by adding after section 417 the following: 

16 ‘‘SEC. 418. FEDERAL SUPPORT FOR DEPLOYMENT OF CAR17 BON CAPTURE, UTILIZATION, AND STORAGE 

18 WITH ELECTRICITY GENERATION. 

19 ‘‘(a) IN GENERAL.—Subject to the limitations in sub20 section (b), the Secretary shall provide support for deploy21 ment and use of carbon capture, utilization, and storage 

22 at commercial-scale electricity generation facilities by en23 tering into a contract for differences, which may not ex24 ceed a term of more than 30 years, to provide price cer25 tainty for the sale of the electricity generated by, or carbon 

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1 dioxide captured by, an eligible power system to a third 

2 party. 

3 ‘‘(b) LIMITATIONS.— 

4 ‘‘(1) INITIAL CAP.—Except as provided in para5 graph (2), the Secretary may not provide support 

6 described in subsection (a)— 

7 ‘‘(A) for eligible power systems with more 

8 than 3 gigawatt of cumulative electricity gener9 ating capacity; or 

10 ‘‘(B) in a cumulative amount projected to 

11 have a value exceeding $10,000,000,000. 

12 ‘‘(2) ADDITIONAL SUPPORT REQUIRED.—If the 

13 Secretary determines, based on the study under14 taken pursuant to subsection (c), that additional 

15 support for the commercial-scale deployment of car16 bon capture, utilization, and storage at electricity 

17 generation facilities beyond that provided under 

18 paragraph (1) is required to establish the market vi19 ability of carbon capture, utilization and storage 

20 consistent with the purposes of this title, the Sec21 retary may provide support under subsection (a) for 

22 additional eligible power systems with not more than 

23 8 gigawatts of additional cumulative electricity gen24 erating capacity. 

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1 ‘‘(c) STUDY.—The Secretary shall conduct a study to 

2 evaluate whether the support provided under subsection 

3 (a), combined with other Federal programs and policies 

4 and with commercial technology deployments, has estab5 lished the market viability of using carbon capture, utiliza6 tion, and storage at commercial-scale electricity gener7 ating facilities consistent with the purposes of this title. 

8 The study shall be initiated no later than the earlier of— 

9 ‘‘(1) the date the Secretary reaches the initial 

10 cap on support for eligible power systems in sub11 section (b)(1); or 

12 ‘‘(2) the date that is 7 years after the date of 

13 enactment of this section. 

14 ‘‘(d) APPLICATION.— 

15 ‘‘(1) IN GENERAL.—An entity seeking support 

16 provided under subsection (a) shall submit to the 

17 Secretary an application at such time and in such 

18 manner as the Secretary may require. 

19 ‘‘(2) CRITERIA.—In evaluating such an applica20 tion, the Secretary shall consider technical, financial, 

21 and other factors that the Secretary determines ap22 propriate. 

23 ‘‘(e) CONSIDERATIONS.—In implementing subsection 

24 (a), the Secretary shall seek to support the use of carbon 

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1 verse fuel types and technologies, including first-of-its2 kind technology for carbon capture, utilization, and stor3 age capacity. 

4 ‘‘(f) DEFINITIONS.—In this section: 

5 ‘‘(1) POWER SYSTEM.—The term ‘power sys6 tem’ means an electricity generating unit that uti7 lizes fossil fuels to generate electricity that is pro8 vided to the electric grid or directly to a consumer. 

9 ‘‘(2) ELIGIBLE POWER SYSTEM.—The term ‘eli10 gible power system’ means a power system that— 

11 ‘‘(A) is equipped with carbon capture tech12 nology, or otherwise produces a separate carbon 

13 dioxide stream that is suitable for utilization or 

14 storage; 

15 ‘‘(B) is designed to capture carbon dioxide 

16 that would otherwise be emitted by the power 

17 system; and 

18 ‘‘(C) will utilize or store the captured car19 bon dioxide, or has contracted with one or more 

20 other entities to utilize or store the captured 

21 carbon dioxide.’’. 

22 (b) TABLE OF CONTENTS AMENDMENT.—The table 

23 of contents for the Energy Policy Act of 2005 is amended 

24 by adding after the item relating to section 417 the fol25 lowing: 

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‘‘Sec. 418. Federal support for deployment of carbon capture, utilization, and 

storage with electricity generation.’’. 

1 Subtitle C—Federal Support for 

2 Commercial Deployment of Car3 bon Capture, Utilization, and 

4 Storage 

5 SEC. 131. ENHANCEMENT OF CARBON DIOXIDE SEQUES6 TRATION CREDIT. 

7 (a) EXTENSION OF CREDIT PERIOD.—Section 

8 45Q(a) of the Internal Revenue Code of 1986 is amend9 ed— 

10 (1) by striking ‘‘12-year’’ in paragraph (3)(A) 

11 and inserting ‘‘20-year’’; and 

12 (2) by striking ‘‘12-year’’ in paragraph (4)(A) 

13 and inserting ‘‘20-year’’. 

14 (b) EXTENSION OF QUALIFIED FACILITY CONSTRUC15 TION BEGINNING DATE.—Section 45Q(d)(1) of such Code 

16 is amended by striking ‘‘January 1, 2024’’ and inserting 

17 ‘‘January 1, 2033’’. 

18 SEC. 132. REFORM OF LOAN GUARANTEE PROGRAM. 

19 Section 1703 of the Energy Policy Act of 2005 (42 

20 U.S.C. 16513) is amended— 

21 (1) by striking subsection (e) and inserting the 

22 following: 

23 ‘‘(e) QUALIFICATION OF FACILITIES RECEIVING TAX

24 CREDITS OR FINANCIAL ASSISTANCE.—Notwithstanding 

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1 any other provision of law, a project that receives tax cred2 its or other financial assistance for clean coal technology 

3 shall not be disqualified from receiving a guarantee under 

4 this subchapter.’’; and 

5 (2) by inserting the following new subsection 

6 after subsection (e): 

7 ‘‘(f) IMPLEMENTION.—In implementing the authority 

8 under this section with respect to loan guarantees issued 

9 after the date of enactment of the Clean Energy Future 

10 Through Innovation Act of 2020, the Secretary shall— 

11 ‘‘(1) adjust fees and application requirements to 

12 the scale of a project to ensure that the costs of pre13 paring and submitting an application are not an 

14 undue barrier to participation by smaller, lower risk 

15 projects; 

16 ‘‘(2) ensure that program credit rating require17 ments do not, as applied, act as an obstacle to par18 ticipation in the loan guarantee program by first-of19 a-kind projects, consistent with the purpose of the 

20 loan guarantee program to enable debt financing for 

21 first-of-a-kind projects that would not otherwise have 

22 access to commercial debt markets; and 

23 ‘‘(3) for first-of-a-kind projects, cover the cost 

24 of the guarantee with appropriated funds rather 

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1 than requiring the borrower to pay some or all of 

2 the cost of the guarantee under section 1702(b).’’. 

3 SEC. 133. PRIVATE ACTIVITY BONDS FOR CARBON DIOXIDE 

4 CAPTURE FACILITIES. 

5 (a) IN GENERAL.—Section 142(a) of the Internal 

6 Revenue Code of 1986 is amended by striking ‘‘or’’ at the 

7 end of paragraph (14), by striking the period at the end 

8 of paragraph (15) and inserting ‘‘, or’’, and by adding at 

9 the end the following new paragraph: 

10 ‘‘(16) qualified carbon dioxide capture facili11 ties.’’. 

12 (b) QUALIFIED CARBON DIOXIDE CAPTURE FACIL13 ITY.—Section 142 of such Code is amended by adding at 

14 the end the following new subsection: 

15 ‘‘(n) QUALIFIED CARBON DIOXIDE CAPTURE FACIL16 ITY.— 

17 ‘‘(1) IN GENERAL.—For purposes of subsection 

18 (a)(16), the term ‘qualified carbon dioxide capture 

19 facility’ means the eligible components of an indus20 trial carbon dioxide facility. 

21 ‘‘(2) DEFINITIONS.—For purposes of this sub22 section— 

23 ‘‘(A) ELIGIBLE COMPONENT.—The term 

24 ‘eligible component’ means, with respect to any 

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1 industrial carbon dioxide facility, any compo2 nent installed in such facility that— 

3 ‘‘(i) satisfies the requirements under 

4 paragraph (3), and 

5 ‘‘(ii)(I) is used for the purpose of cap6 ture, treatment and purification, compres7 sion, transportation, or on-site storage of 

8 carbon dioxide produced by such facility, 

9 or 

10 ‘‘(II) is integral or functionally related 

11 and subordinate to a process described in 

12 section 48B(c)(2) (determined by sub13 stituting ‘carbon dioxide’ for ‘carbon mon14 oxide’). 

15 ‘‘(B) INDUSTRIAL CARBON DIOXIDE FACIL16 ITY.— 

17 ‘‘(i) IN GENERAL.—The term ‘indus18 trial carbon dioxide facility’ means a facil19 ity that emits carbon dioxide (including 

20 from any fugitive emissions source) that is 

21 created as a result of any of the following 

22 processes: 

23 ‘‘(I) Fuel combustion for elec24 tricity generation or other purposes. 

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1 ‘‘(II) Gasification for electricity 

2 generation or other purposes. 

3 ‘‘(III) Bioindustrial. 

4 ‘‘(IV) Fermentation. 

5 ‘‘(V) Any manufacturing industry 

6 described in section 48B(c)(7). 

7 ‘‘(ii) EXCEPTIONS.—Such term shall 

8 not include— 

9 ‘‘(I) any geological gas facility, or 

10 ‘‘(II) any air separation unit that 

11 does not qualify as gasification equip12 ment or is not a necessary component 

13 of an oxy-fuel combustion process, a 

14 supercritical carbon dioxide process, 

15 or other advanced power system. 

16 ‘‘(iii) GEOLOGICAL GAS FACILITY.— 

17 The term ‘geological gas facility’ means a 

18 facility that— 

19 ‘‘(I) produces a raw product con20 sisting of gas or mixed gas and liquid 

21 from a geological formation, 

22 ‘‘(II) transports or removes im23 purities from such product, or 

24 ‘‘(III) separates such product 

25 into its constituent parts. 

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1 ‘‘(3) CAPTURE AND STORAGE REQUIREMENT.— 

2 For purposes of this subsection— 

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

4 subparagraph (B), a component shall not be 

5 treated as meeting the requirements of this 

6 paragraph with respect to an industrial carbon 

7 dioxide facility unless such component has a 

8 capture and storage percentage that is at least 

9 65 percent. 

10 ‘‘(B) EXCEPTION.—In the case of an in11 dustrial carbon dioxide facility with a capture 

12 and storage percentage that is less than 65 per13 cent, a component with respect to such facility 

14 shall not be treated as meeting the require15 ments of this paragraph unless the percentage 

16 of the cost of such component that is financed 

17 by tax-exempt bonds is not greater than such 

18 capture and storage percentage. 

19 ‘‘(C) CAPTURE AND STORAGE PERCENT20 AGE.— 

21 ‘‘(i) IN GENERAL.—The capture and 

22 storage percentage shall be an amount, ex23 pressed as a percentage, equal to the 

24 quotient of— 

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1 ‘‘(I) the total metric tons of car2 bon dioxide annually captured, trans3 ported, and injected into a facility for 

4 geologic storage, or an enhanced oil or 

5 gas recovery well followed by geologic 

6 storage, divided by 

7 ‘‘(II) the total metric tons of car8 bon dioxide which would otherwise be 

9 released into the atmosphere each 

10 year as industrial emission of green11 house gas if the component were not 

12 installed in the industrial carbon diox13 ide facility. 

14 ‘‘(ii) LIMITED APPLICATION OF ELIGI15 BLE COMPONENTS.—In the case of eligible 

16 components that are designed to capture 

17 carbon dioxide solely from specific sources 

18 of emissions or portions thereof within an 

19 industrial carbon dioxide facility, the cap20 ture and storage percentage under this 

21 subparagraph shall be determined based 

22 only on such specific sources of emissions 

23 or portions thereof.’’. 

24 (c) VOLUME CAP.—Section 146(g)(4) of such Code 

25 is amended by striking ‘‘paragraph (11) of section 142(a) 

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1 (relating to high-speed intercity rail facilities)’’ and insert2 ing ‘‘paragraph (11) or (16) of section 142(a)’’. 

3 (d) CLARIFICATION OF PRIVATE BUSINESS USE.— 

4 Section 141(b)(6) of such Code is amended by adding at 

5 the end the following new subparagraph: 

6 ‘‘(C) CLARIFICATION RELATING TO QUALI7 FIED CARBON DIOXIDE CAPTURE FACILITIES.— 

8 For purposes of this subsection, the sale of car9 bon dioxide produced by a qualified carbon di10 oxide capture facility (as defined in section 

11 142(n)) which is owned by a governmental unit 

12 shall not constitute private business use.’’. 

13 (e) EFFECTIVE DATE.—The amendments made by 

14 this section shall apply to obligations issued after the date 

15 of enactment of this Act. 

16 SEC. 134. EXTENSION OF PUBLICLY TRADED PARTNERSHIP 

17 OWNERSHIP STRUCTURE. 

18 (a) IN GENERAL.—Section 7704(d)(1)(E) of the In19 ternal Revenue Code of 1986 is amended— 

20 (1) by striking ‘‘income and gains derived from 

21 the exploration’’ and inserting ‘‘income and gains 

22 derived from any of the following: 

23 ‘‘(i) The exploration’’; and 

24 (2) by inserting a period after ‘‘40A(d)(1)’’ and 

25 inserting thereafter the following: 

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1 ‘‘(ii) The production, storage, or 

2 transportation of any fuel which— 

3 ‘‘(I) uses carbon dioxide captured 

4 from an anthropogenic source or the 

5 atmosphere as its primary feedstock, 

6 and 

7 ‘‘(II) is determined by the Sec8 retary, in consultation with the Sec9 retary of Energy and the Adminis10 trator of the Environmental Protec11 tion Agency, to achieve a reduction of 

12 not less than a 60 percent in lifecycle 

13 greenhouse gas emissions (as defined 

14 in section 211(o)(1)(H) of the Clean 

15 Air Act) compared to baseline lifecycle 

16 greenhouse gas emissions (as defined 

17 in section 211(o)(1)(C) of such Act). 

18 This clause shall not apply to any fuel 

19 which uses as its primary feedstock carbon 

20 dioxide which is deliberately released from 

21 naturally occurring subsurface springs. 

22 ‘‘(iii) The production of any product 

23 or the generation of electric power from a 

24 project— 

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1 ‘‘(I) which meets the require2 ments of subparagraphs (A) and (B) 

3 of section 48B(c)(1), and 

4 ‘‘(II) not less than 75 percent of 

5 the total carbon dioxide emissions of 

6 which is qualified carbon oxide (as de7 fined in section 45Q(c)) which is dis8 posed of or utilized as provided in 

9 paragraph (6). 

10 ‘‘(iv) The generation or storage of 

11 electric power (including associated income 

12 from the sale or marketing of energy, ca13 pacity, resource adequacy, and ancillary 

14 services) produced from any power genera15 tion facility which is, or from any power 

16 generation unit within, a qualified facility 

17 under section 45Q(d) and not less than 50 

18 percent (30 percent in the case of a facility 

19 or unit placed in service before January 1, 

20 2017) of the total carbon dioxide emissions 

21 of which is qualified carbon oxide which is 

22 disposed of or utilized as provided in para23 graph (7). 

24 ‘‘(v) The sale of any good or service 

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1 eration facility) which is a qualified facility 

2 described in section 45Q(c) and the cap3 tured qualified carbon oxide (as so defined) 

4 of which is disposed of as provided in para5 graph (6).’’. 

6 (b) DISPOSAL AND UTILIZATION OF CAPTURED CAR7 BON DIOXIDE.—Section 7704(d) of such Code is amended 

8 by adding at the end the following new paragraph: 

9 ‘‘(6) DISPOSAL AND UTILIZATION OF CAPTURED

10 CARBON DIOXIDE.—For purposes of clauses (iii)(II) 

11 and (iv)(II) of paragraph (1)(E), carbon dioxide is 

12 disposed of or utilized as provided in this paragraph 

13 if such carbon dioxide is— 

14 ‘‘(A) placed into secure geological storage 

15 (as determined under section 45Q(f)(2)), 

16 ‘‘(B) used as a tertiary injectant (as de17 fined in section 45Q(e)(3)) in a qualified en18 hanced oil or natural gas recovery project (as 

19 defined in section 45Q(e)(2)) and placed into 

20 secure geological storage (as so determined), 

21 ‘‘(C) fixed through photosynthesis or 

22 chemosynthesis (including through the growing 

23 of algae or bacteria), 

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1 ‘‘(D) chemically converted to a material or 

2 chemical compound in which it is securely 

3 stored, or 

4 ‘‘(E) used for any other purpose which the 

5 Secretary determines has the potential to 

6 strengthen or significantly develop a competitive 

7 market for carbon dioxide captured from man8 made sources.’’. 

9 (c) EFFECTIVE DATE.—The amendments made by 

10 this section shall take effect on the date of the enactment 

11 of this Act, in taxable years ending after such date. 

12 SEC. 135. PRODUCTION TAX CREDIT FOR CERTAIN ELEC13 TRICITY GENERATION USING CARBON CAP14 TURE UTILIZATION AND STORAGE. 

15 (a) IN GENERAL.—Subpart D of part IV of sub16 chapter A of chapter 1 of the Internal Revenue Code of 

17 1986 is amended by adding at the end the following new 

18 section: 

19 ‘‘SEC. 45U. ELECTRICITY PRODUCED USING CARBON CAP20 TURE UTILIZATION AND STORAGE TECH21 NOLOGY. 

22 ‘‘(a) GENERAL RULE.—For purposes of section 38, 

23 the carbon capture production credit for any taxable year 

24 is an amount equal to— 

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1 ‘‘(1) in the case of a qualified facility using fos2 sil fuels, the product of— 

3 ‘‘(A) the megawatt hours of electricity— 

4 ‘‘(i) produced by the taxpayer at a 

5 qualified facility during the 20-year period 

6 beginning on the date the facility was 

7 originally placed in service, and 

8 ‘‘(ii) sold by the taxpayer to an unre9 lated person during the taxable year, mul10 tiplied by 

11 ‘‘(B)(i) $30 per megawatt hour in the case 

12 of a qualified facility storing carbon in secure 

13 geological storage, or 

14 ‘‘(ii) $24 per megawatt hour in the case of 

15 a qualified facility using captured carbon oxide 

16 as a tertiary injectant in a qualified enhanced 

17 oil or natural gas recovery project, multiplied by 

18 ‘‘(C) the discount factor, 

19 ‘‘(2) in the case of electricity generation facili20 ties using exclusively qualified hydrogen, qualified 

21 ammonia, or qualified blends, the product of— 

22 ‘‘(A) the megawatt hours of electricity— 

23 ‘‘(i) produced by the taxpayer at a 

24 qualified facility during the 20-year period 

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1 beginning on the date the facility was 

2 originally placed in service, and 

3 ‘‘(ii) sold by the taxpayer to an unre4 lated person during the taxable year, mul5 tiplied by 

6 ‘‘(B) $100 per megawatt hour. 

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

8 ‘‘(1) DISCOUNT FACTOR.—The term ‘discount 

9 factor’ means an amount equal to 90 divided by the 

10 annual carbon dioxide emissions rate expressed in 

11 pounds per megawatt-hour for a qualified facility, 

12 except that— 

13 ‘‘(A) if the annual carbon dioxide emis14 sions rate for a qualified facility is less than 90 

15 pounds per megawatt-hour, the discount factor 

16 is equal to 1, and 

17 ‘‘(B) if the annual carbon dioxide emis18 sions rate for a qualified facility is greater 180 

19 pounds per megawatt-hour, the discount factor 

20 is equal to 0. 

21 ‘‘(2) QUALIFIED AMMONIA.—The term ‘quali22 fied ammonia’ means ammonia fuel produced with 

23 less than 17.5 pounds of carbon dioxide emissions 

24 per million Btu of gross fuel heating value. 

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1 ‘‘(3) QUALIFIED BLEND.—The term ‘qualified 

2 blend’ means a blend of qualified hydrogen or quali3 fied ammonia with fossil fuel in which the fossil fuel 

4 provides no more than 30 percent of the heating 

5 value input. 

6 ‘‘(4) QUALIFIED FACILITY.—The term ‘quali7 fied facility’ means an electricity generation plant 

8 that— 

9 ‘‘(A) is equipped with carbon capture 

10 equipment, the construction of which com11 menced before January 1, 2033, 

12 ‘‘(B) captures carbon oxide using carbon 

13 capture equipment, 

14 ‘‘(C) stores captured carbon oxide in se15 cure geological storage or uses captured carbon 

16 oxide as a tertiary injectant in a qualified en17 hanced oil or natural gas recovery project, and 

18 ‘‘(D) has not been the basis for a credit re19 ceived under section 45Q. 

20 ‘‘(5) QUALIFIED HYDROGEN.—The term ‘quali21 fied hydrogen’ means hydrogen fuel produced with 

22 less than 17.5 pounds of carbon dioxide emissions 

23 per million Btu of gross fuel heating value.’’. 

24 (b) PART OF GENERAL BUSINESS CREDIT.—Section 

25 38(B) of such Code is amended by striking ‘‘plus’’ at the 

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1 end of paragraph (32), by striking the period at the end 

2 of paragraph (33) and inserting ‘‘, plus’’, and by adding 

3 at the end the following new paragraph: 

4 ‘‘(34) the carbon capture production credit 

5 under section 45U(a).’’. 

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

7 for subpart D of part IV of subchapter A of chapter 1 

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

‘‘Sec. 45U. Electricity produced using carbon capture utilization and storage 

technology.’’. 

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

10 this section shall apply with respect to electricity sold and 

11 produced after the date of the enactment of this Act. 

12 SEC. 136. ELECTIVE PAYMENT OF CREDIT. 

13 (a) Subchapter B of chapter 65 of the Internal Rev14 enue Code is amended by adding at the end the following 

15 new section: 

16 ‘‘SEC. 6431. ELECTIVE PAYMENT OF CREDITS RELATING TO 

17 CARBON OXIDE SEQUESTRATION. 

18 ‘‘(a) ELECTION.—In the case of a taxpayer making 

19 an election (at such time and in such manner as the Sec20 retary may provide) under this section with respect to any 

21 portion of an applicable credit, such taxpayer shall be 

22 treated as making a payment against the tax imposed by 

23 subtitle A for the taxable year equal to the amount of such 

24 portion. 

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1 ‘‘(b) DEFINITIONS AND SPECIAL RULES.—For pur2 poses of this section— 

3 ‘‘(1) GOVERNMENTAL ENTITIES TREATED AS

4 TAXPAYERS.—In the case of an election under this 

5 section— 

6 ‘‘(A) any State or local government, or a 

7 political subdivision thereof, or 

8 ‘‘(B) an Indian Tribal government, 

9 shall be treated as a taxpayer for purposes of this 

10 section and determining any applicable credit. 

11 ‘‘(2) APPLICABLE CREDIT.—The term ‘applica12 ble credit’ means each of the following credits that 

13 would (without regard to this section) be determined 

14 with respect to the taxpayer: 

15 ‘‘(A) A carbon oxide sequestration credit 

16 under section 45Q. 

17 ‘‘(B) A carbon capture production credit 

18 under section 45U. 

19 ‘‘(3) INDIAN TRIBAL GOVERNMENT.—The term 

20 ‘Indian Tribal government’ shall have the meaning 

21 given such term by section 139E. 

22 ‘‘(4) TIMING.—The payment described in sub23 section (a) shall be treated as made on— 

24 ‘‘(A) in the case of any government, or po25 litical subdivision, to which paragraph (1) apVerDate Sep 11 2014 21:31 Feb 13, 2021 Jkt 019200 PO 00000 Frm 00045 Fmt 6652 Sfmt 6201 E:\BILLS\H9054.IH H9054
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1 plies and for which no return is required under 

2 section 6011 or 6033(a), the later of the date 

3 that a return would be due under section 

4 6033(a) if such government or subdivision were 

5 described in that section or the date on which 

6 such government or subdivision submits a claim 

7 for credit or refund (at such time and in such 

8 manner as the Secretary shall provide), and 

9 ‘‘(B) in any other case, the later of the due 

10 date of the return of tax for the taxable year 

11 or the date on which such return is filed. 

12 ‘‘(5) WAIVER OF SPECIAL RULES.—In the case 

13 of an election under this section, the determination 

14 of any applicable credit shall be without regard to 

15 paragraphs (3) and (4)(A)(i) of section 50(b). 

16 ‘‘(c) EXCLUSION FROM GROSS INCOME.—Gross in17 come of the taxpayer shall be determined without regard 

18 to this section. 

19 ‘‘(d) DENIAL OF DOUBLE BENEFIT.—Solely for pur20 poses of section 38, in the case of a taxpayer making an 

21 election under this section, the applicable credit shall be 

22 reduced by the amount of the portion of such credit with 

23 respect to which the taxpayer makes such election.’’. 

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

2 for subchapter B of chapter 65 is amended by adding at 

3 the end the following new item: 

‘‘Sec. 6432. Elective payment of credits related to carbon oxide sequestration.’’. 

4 Subtitle D—Support for Carbon Di5 oxide Transportation and Se6 questration Infrastructure 

7 SEC. 141. SECURING GEOLOGIC RESERVOIRS FOR CARBON 

8 DIOXIDE. 

9 (a) IN GENERAL.—Subtitle B of title IV of the En10 ergy Policy Act of 2005 (42 U.S.C. 15971 et seq.) is fur11 ther amended by adding after section 418 (as added by 

12 this Act) the following new section: 

13 ‘‘SEC. 419. SECURING GEOLOGIC RESERVOIRS FOR STOR14 AGE OF CARBON DIOXIDE. 

15 ‘‘(a) IN GENERAL.—The Secretary shall establish a 

16 program to— 

17 ‘‘(1) identify geological formations that are ca18 pable of storing, cumulatively, at least 250,000,000 

19 tons of carbon dioxide with a target storage cost of 

20 less than $10 per ton; 

21 ‘‘(2) assess the cost of developing and operating 

22 a carbon dioxide sequestration facility at the geologi23 cal formations identified under paragraph (1); and 

24 ‘‘(3) support the development of such carbon di25 oxide sequestration facility by providing grants or 

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1 other appropriate financial assistance to storage fa2 cility developers to— 

3 ‘‘(A) secure property rights that are nec4 essary to enable carbon dioxide storage in such 

5 geologic formations; and 

6 ‘‘(B) obtain necessary permits and ap7 proval to enable carbon dioxide storage in such 

8 geologic formations. 

9 ‘‘(b) GEOGRAPHIC DIVERSITY.—The Secretary shall 

10 carry out subsection (a) with the goal of supporting devel11 opment of carbon dioxide sequestration facilities that are 

12 capable of storing significant volumes of carbon dioxide 

13 at reasonable cost in each of the regions covered by the 

14 regional carbon sequestration partnerships established 

15 pursuant to section 963. 

16 ‘‘(c) APPLICATION.—An entity seeking a grant or 

17 other appropriate financial assistance provided under this 

18 section shall submit to the Secretary an application at 

19 such time and in such manner as the Secretary may re20 quire. 

21 ‘‘(d) COST SHARING.—The Secretary shall consider 

22 the activities described under subsection (a)(3) to be sub23 ject to the cost share requirement for demonstration and 

24 commercial application activities under section 988(c).’’. 

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1 (b) TABLE OF CONTENTS AMENDMENT.—The table 

2 of contents for the Energy Policy Act of 2005 is further 

3 amended by adding after the item relating to section 418 

4 (as added by this Act) the following: 

‘‘Sec. 419. Securing geologic reservoirs for storage of carbon dioxide.’’. 

5 SEC. 142. FINANCIAL ASSISTANCE FOR CARBON DIOXIDE 

6 SEQUESTRATION INFRASTRUCTURE DEVEL7 OPMENT. 

8 (a) IN GENERAL.—Subtitle B of title IV of the En9 ergy Policy Act of 2005 (42 U.S.C. 15971 et seq.) is fur10 ther amended by adding after section 419 (as added by 

11 this Act) the following new section: 

12 ‘‘SEC. 420. CARBON DIOXIDE SEQUESTRATION INFRA13 STRUCTURE DEVELOPMENT. 

14 ‘‘(a) IN GENERAL.—The Secretary shall establish a 

15 program to provide grants to support— 

16 ‘‘(1) the development of carbon dioxide pipeline 

17 infrastructure that is necessary to support the trans18 portation of the volumes of carbon dioxide that are 

19 expected to be captured at electricity generation fa20 cilities to appropriate sites for long term sequestra21 tion, giving priority to pipeline projects of significant 

22 length and significant throughput capacity; and 

23 ‘‘(2) the development of geologic sequestration 

24 facilities that are necessary to support long-term se25 questration of the volumes of carbon dioxide that are 

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1 expected to be captured at electricity generation fa2 cilities. 

3 ‘‘(b) APPLICATION.—Applications for a grant pro4 vided under this section shall be submitted at such time 

5 and in such manner as the Secretary may require. 

6 ‘‘(c) COST SHARING.—The Secretary shall consider 

7 support for the development of carbon dioxide pipeline in8 frastructure or the development of geologic sequestration 

9 facility under subsection (a) to be subject to the cost share 

10 requirement for demonstration and commercial application 

11 activities under section 988(c). 

12 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There 

13 are authorized to be appropriated to the Secretary to carry 

14 out this section $2,000,000,000 for each of fiscal years 

15 2021 through 2025.’’. 

16 (b) TABLE OF CONTENTS AMENDMENT.—The table 

17 of contents for the Energy Policy Act of 2005 is further 

18 amended by adding after the item relating to section 419 

19 (as added by this Act) the following: 

‘‘Sec. 420. Carbon dioxide sequestration infrastructure development.’’. 

20 SEC. 143. GEOLOGIC CARBON DIOXIDE SEQUESTRATION 

21 UTILITIES. 

22 (a) IN GENERAL.—The Secretary, in collaboration 

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1 priate, may provide technical assistance to a State that 

2 is seeking to— 

3 (1) establish a government-owned carbon diox4 ide sequestration utility; or 

5 (2) regulate a privately owned carbon dioxide 

6 sequestration utility. 

7 (b) TECHNICAL ASSISTANCE.—Technical assistance 

8 provided under subsection (a) may include— 

9 (1) with respect to a government-owned carbon 

10 dioxide sequestration utility— 

11 (A) conducting engineering studies to sup12 port the development of a geologic sequestration 

13 facility; and 

14 (B) identifying potential carbon dioxide 

15 pipeline routes; and 

16 (2) with respect to State regulation of a pri17 vately owned carbon dioxide sequestration utility— 

18 (A) helping with the development of a 

19 State permitting system for a privately owned 

20 carbon dioxide sequestration utility; and 

21 (B) assisting with the developing regula22 tions for services provided by a privately owned 

23 carbon dioxide sequestration utility and the set24 ting of rates charged for such services. 

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1 (c) REPORT.—Not later than 1 year of the date of 

2 enactment of this section, the Secretary shall submit to 

3 Congress a report that— 

4 (1) characterizes Federal, State, and local regu5 lations that apply to carbon dioxide pipeline and se6 questration facility development and operation; 

7 (2) identifies any gaps in applicable regulations 

8 or standards that need to be addressed to ensure 

9 that carbon dioxide pipeline and sequestration facili10 ties are operated in a safe and effective manner; 

11 (3) evaluates whether regulation of the rates or 

12 terms of service for carbon dioxide transportation 

13 services or geologic sequestration services are nec14 essary to ensure fair access to such services; 

15 (4) evaluates whether eminent domain authority 

16 is necessary to enable development of carbon dioxide 

17 infrastructure in the public interest; and 

18 (5) provides recommended changes to Federal 

19 law that would support the development and use of 

20 carbon dioxide pipeline and geologic sequestration 

21 facilities in the public interest. 

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1 SEC. 144. COORDINATED FEDERAL PERMITTING FOR CAR2 BON DIOXIDE PIPELINE AND SEQUESTRA3 TION FACILITIES. 

4 Section 41001(6)(A) of the FAST Act (42 U.S.C. 

5 4370m note(6)(A)) is amended by striking ‘‘pipelines’’ and 

6 inserting ‘‘pipelines (including pipelines for the transpor7 tation of carbon dioxide), facilities for the geologic seques8 tration of carbon dioxide’’. 

9 SEC. 145. INTERAGENCY TASK FORCE ON CARBON DIOXIDE 

10 PIPELINES. 

11 (a) IN GENERAL.—Not later than 90 days after the 

12 date of enactment of this section, the Secretary shall es13 tablish an interagency task force (in this section referred 

14 to as the ‘‘Task Force’’) to assess the potential for a na15 tional system of carbon dioxide pipelines. 

16 (b) MEMBERSHIP.—The Task Force shall include 

17 representatives from each of the following: 

18 (1) The Department of Energy. 

19 (2) The Department of the Interior. 

20 (3) The Environmental Protection Agency. 

21 (4) The Department of Transportation. 

22 (5) The Federal Energy Regulatory Commis23 sion. 

24 (6) State, local, and Tribal governments. 

25 (7) Any other Federal agency that the Sec26 retary determines has a significant interest or role 

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1 in development of a national system of carbon diox2 ide pipelines. 

3 (c) DUTIES.—The Task Force shall— 

4 (1) conduct annual public workshops to discuss 

5 the potential of, and progress towards, an accessible 

6 and functioning national system of carbon dioxide 

7 pipelines; 

8 (2) provide to the public notice of such work9 shops not less than 60 days before the date on which 

10 each such workshop is conducted; 

11 (3) submit to Congress annual reports that 

12 summarize the activities and progress of the Task 

13 Force; and 

14 (4) as soon as practical, but not later than 5 

15 years after the date on which the Task Force is es16 tablished, submit to Congress a report that provides 

17 a plan to establish a national carbon dioxide pipeline 

18 system, which shall include— 

19 (A) information and recommendations re20 lated to engineering, building, siting, con21 structing, and maintaining a national carbon di22 oxide pipeline system; 

23 (B) recommendations for how to stream24 line the permitting process for new carbon diox25 ide pipelines; 

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1 (C) information on how to integrate new 

2 carbon dioxide pipelines into existing carbon di3 oxide pipeline infrastructure; 

4 (D) a determination on whether incentives 

5 or other policies are needed to encourage the 

6 utilization of the advanced leak detection and 

7 mitigation technology and monitoring capabili8 ties for the national carbon dioxide pipeline sys9 tem; 

10 (E) recommendations for how to regulate 

11 the national carbon dioxide pipeline system to 

12 ensure safety and mitigate environmental im13 pacts; and 

14 (F) an identification of other Federal and 

15 State policy challenges related to the develop16 ment of a national system of carbon dioxide 

17 pipelines. 

18 (d) SUNSET.—This section shall cease to be effective 

19 on the date that is 5 years after the date on which the 

20 Task Force is established. 

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1 TITLE II—INNOVATION IN RE2 NEWABLE ENERGY, ENERGY 

3 EFFICIENCY, AND STORAGE 

4 SEC. 201. ESTABLISHMENT OF TECHNOLOGY PERFORM5 ANCE AND COST TARGETS. 

6 (a) IN GENERAL.—Not later than one year after the 

7 date of enactment of this section, the Secretary shall es8 tablish technology performance and cost targets for three 

9 5-year periods to address existing gaps in technology, with 

10 the first such period starting on the date of enactment 

11 of this section and the last such period ending on the date 

12 that is 15 years following enactment. 

13 (b) TARGETS.—Technology and performance cost 

14 targets shall be established for each of the following tech15 nology categories: 

16 (1) Advanced renewable power technologies, 

17 which include— 

18 (A) large-scale, novel renewable power 

19 plants; 

20 (B) renewable hydrogen power plants, in21 cluding plants for which the hydrogen comes 

22 from renewable natural gas or biogas; 

23 (C) on-shore or off-shore wind power; 

24 (D) thermal or photovoltaic solar power; 

25 (E) hydropower; 

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1 (F) geothermal power; 

2 (G) biomass power; and 

3 (H) advanced renewable energy manufac4 turing techniques. 

5 (2) Mechanical, chemical, and thermal energy 

6 storage technologies, which include— 

7 (A) advanced grid-scale energy storage 

8 technologies with storage durations in the range 

9 of 10 to 50 hours; and 

10 (B) grid-scale energy storage projects that 

11 can economically balance electricity supply and 

12 demand across seasons. 

13 (3) Electricity transmission technologies, which 

14 include underground high-voltage direct current elec15 tricity transmission. 

16 (4) Commercial, industrial, and residential en17 ergy efficiency technologies, which include— 

18 (A) retrofit packages that reduce the en19 ergy used by an average single-family home by 

20 at least 50 percent at a cost of no more than 

21 $25,000 per such home; 

22 (B) smart heating, ventilation, and air con23 ditioning control technologies that— 

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1 (i) can be used in commercial build2 ings that have between 5,000 and 30,000 

3 square feet of floor area; 

4 (ii) can reduce heating, ventilation, 

5 and air conditioning energy consumption 

6 by an average of at least 20 percent com7 pared to average commercial buildings; 

8 (iii) yield energy cost savings that can 

9 provide at least a 50-percent annual return 

10 on the original investment; and 

11 (iv) may include a cloud-based infor12 mation technology; 

13 (C) those technologies that the Secretary 

14 identifies as having the ability to improve en15 ergy efficiency or reduce emissions in heavy in16 dustries, which include those that produce or 

17 refine aluminum, steel, cement, oil, or fertilizer; 

18 and 

19 (D) flexible load technology improvements 

20 to reduce peak demand. 

21 (5) Industrial process and building electrifica22 tion technologies, which include— 

23 (A) heat pump space heaters; 

24 (B) heat pump water heaters; 

25 (C) induction stoves; and 

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1 (D) advanced industrial process heat tech2 nologies. 

3 (c) AUTHORIZATION OF APPROPRIATIONS.—There 

4 are authorized to be appropriated to carry out this section 

5 the following: 

6 (1) With respect to the advanced renewable en7 ergy technologies projects described in subparagraph 

8 (b)(1), $2,000,000,000 for each of fiscal years 2021 

9 through 2025. 

10 (2) With respect to the energy storage tech11 nologies projects described in subparagraph (b)(2), 

12 $400,000,000 for each of fiscal years 2021 through 

13 2025. 

14 (3) With respect to the transmission tech15 nologies and projects described in subparagraph 

16 (b)(3), $600,000,000 for each of fiscal years 2021 

17 through 2025. 

18 SEC. 202. ADVANCED INNOVATION AND COMMERCIALIZA19 TION PROGRAM. 

20 (a) IN GENERAL.—The Secretary, in collaboration 

21 with the National Laboratories, other Federal agencies, 

22 and private sector and university partners as the Secretary 

23 determines necessary, shall establish a program, to be 

24 known as the ‘‘Advanced Innovation and Commercializa25 tion Program’’, to carry out research, development, and 

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1 demonstration of technology that meets the targets estab2 lished for those technologies identified in section 201(b). 

3 (b) EARLY DEPLOYMENT.— 

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

5 a program to provide grants for early deployment of 

6 the technologies demonstrated under the Advanced 

7 Innovation and Commercialization program under 

8 this section. 

9 (2) AUTHORIZATION OF APPROPRIATIONS.— 

10 There is authorized to be appropriated to carry out 

11 this subsection $3,000,000,000 for each of fiscal 

12 years 2021 through 2025. 

13 (c) FEDERAL PROCUREMENT.— 

14 (1) IN GENERAL.—The Secretary, in collabora15 tion with the Secretary of Defense and the Adminis16 trator of the General Services Administration, shall 

17 establish Federal procurement goals and deadlines 

18 for achieving such goals for those technologies iden19 tified in section 201(b)(1) through (5). 

20 (2) FEDERAL ENERGY AND ADVANCED TECH21 NOLOGY ENERGY PROCUREMENT.—The Secretary, in 

22 collaboration with the Secretary of Defense and the 

23 Administrator of General Services, shall— 

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1 (A) through administrative and regulatory 

2 actions, improve Federal procurement of the 

3 technologies described in paragraph (1); 

4 (B) identify and report on barriers to im5 proving Federal procurement of energy and 

6 technologies that require legislative changes; 

7 and 

8 (C) take due regard of the recommenda9 tions from the 2016 report entitled ‘‘Secretary 

10 of Energy Advisory Board Report of the Task 

11 Force on Federal Energy Management’’. 

12 SEC. 203. UPDATING MOBILE HOMES. 

13 (a) UPDATING MOBILE HOMES.—Not later than one 

14 year after the date of enactment of this section, the Sec15 retary shall establish a program to provide grants and 

16 technical assistance to individuals or businesses to facili17 tate the replacement of energy-inefficient mobile homes 

18 with highly efficient zero-energy modular homes. 

19 (b) AUTHORIZATION.—There are authorized to be ap20 propriated to carry out this section $2,500,000,000 for 

21 each of fiscal years 2021 through 2025, to remain avail22 able until expended. 

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1 SEC. 204. INVESTMENT TAX CREDITS FOR ENERGY BAT2 TERY STORAGE, OFFSHORE WIND, AND CER3 TAIN HYDROPOWER TECHNOLOGIES. 

4 (a) IN GENERAL.—Section 48(a)(3)(A) of the Inter5 nal Revenue Code of 1986, as amended by section 121, 

6 is amended by striking ‘‘or’’ at the end of clause (vii), and 

7 by adding at the end the following new clauses: 

8 ‘‘(ix) equipment which generates wind 

9 energy from an offshore facility, 

10 ‘‘(x) energy storage equipment, 

11 ‘‘(xi) equipment which makes a non12 hydroelectric dam capable of generating 

13 hydropower, or 

14 ‘‘(xii) equipment which generates geo15 thermal electricity through an enhanced 

16 geothermal system.’’. 

17 (b) ALLOWANCE OF 30 PERCENT CREDIT.— 

18 (1) IN GENERAL.—Section 48(a)(2)(A)(i)(II) of 

19 the Internal Revenue Code of 1986 is amended by 

20 striking ‘‘paragraph (3)(A)(i)’’ and inserting ‘‘clause 

21 (i), (ix), (x), (xi), or (xii) of paragraph (3)(A)’’. 

22 (2) PHASEOUT.—Section 48(a)(6) of such Code 

23 is amended— 

24 (A) by striking ‘‘solar energy’’ in the head25 ing and inserting ‘‘certain’’, and 

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1 (B) by striking ‘‘paragraph (3)(A)(i)’’ both 

2 places it appears and inserting ‘‘clause (i), (ix), 

3 (x), (xi), or (xii) of paragraph (3)(A)’’. 

4 (c) DEFINITIONS.— 

5 (1) ENERGY CREDIT.—Section 48(c) of the In6 ternal Revenue Code of 1986 is amended by adding 

7 at the end the following new paragraphs: 

8 ‘‘(5) QUALIFIED OFFSHORE WIND PROPERTY.— 

9 ‘‘(A) IN GENERAL.—The term ‘qualified 

10 offshore wind property’ means an offshore facil11 ity using wind to produce electricity. 

12 ‘‘(B) OFFSHORE FACILITY.—The term 

13 ‘offshore facility’ means any facility located in 

14 the inland navigable waters of the United 

15 States, including the Great Lakes, or in the 

16 coastal waters of the United States, including 

17 the territorial seas of the United States, the ex18 clusive economic zone of the United States, and 

19 the outer Continental Shelf of the United 

20 States. 

21 ‘‘(6) ENERGY STORAGE EQUIPMENT.—The term 

22 ‘energy storage equipment’ means equipment which 

23 receives, stores, and delivers energy using batteries, 

24 compressed air, pumped hydropower, hydrogen stor25 age (including hydrolysis and electrolysis), thermal 

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1 energy storage, regenerative fuel cells, flywheels, ca2 pacitors, superconducting magnets, or other tech3 nologies identified by the Secretary in consultation 

4 with the Secretary of Energy, and which has a ca5 pacity of not less than 5 Kilowatt hours. 

6 ‘‘(7) NONHYDROELECTRIC DAM.—The term 

7 ‘nonhydroelectric dam’ means a nonhydroelectric 

8 dam that— 

9 ‘‘(A) is licensed by the Federal Energy 

10 Regulatory Commission and meets all other ap11 plicable environmental, licensing, and regulatory 

12 requirements, 

13 ‘‘(B) was placed in service before the date 

14 of the enactment of this paragraph and oper15 ated for flood control, navigation, or water sup16 ply purposes and did not produce hydroelectric 

17 power on the date of the enactment of this 

18 paragraph, 

19 ‘‘(C) is operated so that the water surface 

20 elevation at any given location and time that 

21 would have occurred in the absence of the hy22 droelectric project is maintained, subject to any 

23 license requirements imposed under applicable 

24 law that change the water surface elevation for 

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1 the purpose of improving environmental quality 

2 of the affected waterway, and 

3 ‘‘(D) includes one more hydroelectric 

4 projects which have been certified by the Sec5 retary, after consultation with the Federal En6 ergy Regulatory Commission, as meeting the re7 quirements of clause (iii). 

8 ‘‘(8) ENHANCED GEOTHERMAL SYSTEM.—The 

9 term ‘enhanced geothermal system’ means a system 

10 to extract heat by creating a subsurface fracture 

11 system to which water can be added through injec12 tion wells.’’. 

13 (2) QUALIFYING ADVANCED ENERGY PROJECT

14 CREDIT.—Section 48C(c)(1)(A)(i)(IV) of the Inter15 nal Revenue Code of 1986 is amended by inserting 

16 ‘‘, including through direct air capture or carbon di17 oxide removal’’ after ‘‘emissions’’. 

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

19 this section shall apply to property placed in service after 

20 December 31, 2019. 

21 (e) COORDINATION WITH FEDERAL POWER ACT.— 

22 Nothing in this section, or the amendments made by this 

23 section, shall affect the standards under which the Federal 

24 Energy Regulatory Commission issues licenses for and 

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1 regulates hydropower projects under part I of the Federal 

2 Power Act. 

3 SEC. 205. EXTENSION OF PRODUCTION TAX CREDIT FOR 

4 SOLAR AND ON-SHORE WIND. 

5 (a) WIND.—Section 45(d)(1) of the Internal Revenue 

6 Code of 1986 is amended by striking ‘‘January 1, 2021’’ 

7 and inserting ‘‘January 1, 2031’’. 

8 (b) SOLAR.—Section 45(d)(4)(A) of such Code is 

9 amended by striking ‘‘placed in service before January 1, 

10 2006’’ and inserting ‘‘construction of which begins before 

11 January 1, 2031’’. 

12 (c) APPLICATION OF PHASEOUT PERCENTAGE TO

13 WIND FACILITIES.—Section 45(b)(5)(D) of such Code is 

14 amended by striking ‘‘January 1, 2021’’ and inserting 

15 ‘‘January 1, 2031’’. 

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

17 this section shall apply to facilities the construction of 

18 which begins after December 31, 2020. 

19 SEC. 206. RENEWAL OF QUALIFYING ADVANCED ENERGY 

20 PROJECT CREDIT. 

21 (a) IN GENERAL.—Section 48C(d)(2)(A) of the In22 ternal Revenue Code of 1986 is amended by striking ‘‘dur23 ing the 2-year period beginning on the date the Secretary 

24 establishes the program under paragraph (1)’’. 

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

2 this section shall apply to applications received after the 

3 date of the enactment of this Act. 

4 SEC. 207. PERFORMANCE-BASED TAX CREDITS FOR COM5 MERCIAL AND RESIDENTIAL BUILDINGS. 

6 (a) The Internal Revenue Code of 1986 is amended 

7 by inserting the following after section 45U (as added by 

8 this Act): 

9 ‘‘SEC. 45V. DEEP ENERGY RETROFITS AND ZERO-ENERGY 

10 COMMERCIAL AND RESIDENTIAL BUILDINGS. 

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

12 ‘‘(1) BTU.—The term ‘Btu’ means British 

13 Thermal Unit. 

14 ‘‘(2) BUILDING ENERGY.—The term ‘building 

15 energy’ means energy consumed at the building site 

16 as measured at the site boundary, which includes 

17 heating, cooling, ventilation, domestic hot water, in18 door and outdoor lighting, plug loads, process en19 ergy, elevators and conveying systems, and 

20 intrabuilding transportation systems. 

21 ‘‘(3) DEEP ENERGY RETROFIT.—The term 

22 ‘deep energy retrofit’ means a project that uses en23 ergy efficiency measures and renewable energy re24 sources to reduce the energy use of an existing 

25 building by at least 50 percent on an annual basis 

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1 relative to the most recent 12-month period in which 

2 the building was fully occupied prior to the project, 

3 provided that energy efficiency measures must ac4 count for at least 80 percent of the reduction in en5 ergy use. 

6 ‘‘(4) DELIVERED ENERGY.—The term ‘delivered 

7 energy’ means any type of energy that could be 

8 bought or sold as building energy, including elec9 tricity, steam, hot or chilled water, natural gas, 

10 biogas, landfill gas, coal, coke, propane, petroleum 

11 and its derivatives, residual fuel oil, alcohol-based 

12 fuels, wood, biomass, and any other material con13 sumed as fuel. 

14 ‘‘(5) EXPORTED ENERGY.—The term ‘exported 

15 energy’ means on-site renewable energy supplied 

16 through the site boundary and used outside the site 

17 boundary. 

18 ‘‘(6) HIGH RISE COMMERCIAL BUILDING.—The 

19 term ‘high rise commercial building’ means a com20 mercial building of four or more above grade stories. 

21 ‘‘(7) HIGH RISE RESIDENTIAL BUILDING.—The 

22 term ‘high rise residential building’ means a multi23 family building with four or more above grade sto24 ries. 

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1 ‘‘(8) kWH.—The term ‘kWh’ means Kilowatt 

2 Hour. 

3 ‘‘(9) LOW RISE RESIDENTIAL BUILDING.—The 

4 term ‘low rise residential building’ means a single5 family home or multifamily building with no more 

6 than three above grade stories. 

7 ‘‘(10) ON-SITE RENEWABLE ENERGY.—The 

8 term ‘on-site renewable energy’ means any renewable 

9 energy collected and generated within the site 

10 boundary that is used for building energy, and the 

11 excess renewable energy exported outside the site 

12 boundary, provided that any renewable energy cer13 tificates associated with the on-site renewable energy 

14 must be retained or retired by the building owner or 

15 lessee to be claimed as on-site renewable energy. 

16 ‘‘(11) RENEWABLE ENERGY.—The term ‘renew17 able energy’ means energy generated by biomass, 

18 hydro, geothermal, solar, wind, ocean thermal, wave 

19 action, or tidal action resources. 

20 ‘‘(12) RENEWABLE ENERGY CERTIFICATE.— 

21 The term ‘renewable energy certificate’ means a cer22 tificate or credit that represents and conveys the en23 vironmental, social, or other nonpower qualities of 

24 one megawatt hour of renewable energy, and can be 

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1 tricity associated with the renewable energy re2 source. 

3 ‘‘(13) SITE BOUNDARY.—The term ‘site bound4 ary’ means the limits of the building site across 

5 which delivered energy and exported energy are 

6 measured. 

7 ‘‘(14) SOURCE ENERGY.—The term ‘source en8 ergy’ means building energy plus the energy losses 

9 in thermal combustion in electricity generation re10 sources; and energy losses in transmission and dis11 tribution to the building site. 

12 ‘‘(15) ZERO-ENERGY BUILDING.—The term 

13 ‘zero-energy building’ means a building for which, on 

14 a source energy basis, the actual annual delivered 

15 energy is less than or equal to the on-site renewable 

16 exported energy, provided that energy purchased 

17 from off-site and renewable energy generated on-site 

18 and then sold off-site shall be valued at 6000 Btu/ 

19 kWh. 

20 ‘‘(16) ZERO-ENERGY-READY BUILDING.—The 

21 term ‘zero-energy-ready building’ means a building 

22 that— 

23 ‘‘(A) if it is a commercial building or high 

24 rise residential building— 

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1 ‘‘(i) is in compliance with Standard 

2 90.1–2019 published by the American So3 ciety of Heating, Refrigerating and Air4 Conditioning Engineers; 

5 ‘‘(ii) is in compliance with Appendix 

6 CA (Solar-Ready Zone) of the 2021 Inter7 national Energy Conservation Code; and 

8 ‘‘(iii) demonstrates that its energy 

9 consumption is at least 30 percent below 

10 the maximum permitted under American 

11 Society of Heating, Refrigerating and Air12 Conditioning Engineers Standard 90.1– 

13 2019, as calculated using the methodology 

14 in Appendix G of such standard; and 

15 ‘‘(B) if it is a low rise residential build16 ing— 

17 ‘‘(i) has an Energy Rating Index of 

18 40 or less as calculated using the proce19 dures in Chapter 3 of the residential sec20 tion of the 2012 International Energy 

21 Conservation Code but excluding any re22 newable energy resources in the calcula23 tion, provided that certification of compli24 ance with the Energy Rating Index re25 quirement shall be made by a registered 

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1 architect or engineer by another profes2 sional authorized by the Secretary of En3 ergy by rule; 

4 ‘‘(ii) is in compliance with Appendix 

5 RA (Solar-Ready Zone) of the 2021 Inter6 national Energy Conservation Code; and 

7 ‘‘(iii) is certified under— 

8 ‘‘(I) the Zero Energy Ready 

9 Homes program administered by the 

10 Department of Energy; or 

11 ‘‘(II) the Passive House speci12 fications of the Passive Institute US 

13 or the International Passive House 

14 Institute. 

15 ‘‘(b) ELIGIBILITY FOR TAX CREDIT.—To be eligible 

16 to receive a tax credit under this section, the builder or 

17 owner of a building must demonstrate that— 

18 ‘‘(1) the building is located in the United 

19 States; 

20 ‘‘(2) the building is at least 50 percent occupied 

21 when the tax credit is claimed; 

22 ‘‘(3) if the building has implemented a deep en23 ergy retrofit, the project has been completed and 

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1 chitect or engineer, or by another professional au2 thorized by the Secretary of Energy by rule; and 

3 ‘‘(4) if the building is a zero-energy building, 

4 the building has been zero-energy over a span of 12 

5 continuous months with at least 50 percent occu6 pancy as verified— 

7 ‘‘(A) through certification by the Living 

8 Buildings Institute Zero Energy Certification 

9 Program; 

10 ‘‘(B) through certification by the LEED 

11 Zero Energy Certification Program Verification; 

12 or 

13 ‘‘(C) by another professional authorized by 

14 the Secretary of Energy by rule. 

15 ‘‘(c) TAX CREDIT AMOUNTS.— 

16 ‘‘(1) ZERO-ENERGY-READY BUILDINGS.—The 

17 following tax credit amounts shall be awarded for 

18 certified zero-energy-ready buildings— 

19 ‘‘(A) for a residential building with no 

20 more than four dwelling units, $5,000 per 

21 dwelling unit; 

22 ‘‘(B) for a residential building with five or 

23 more dwelling units, $3,500 per dwelling unit; 

24 and 

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1 ‘‘(C) for a commercial building, $3 per 

2 square foot of floor area. 

3 ‘‘(2) ZERO-ENERGY BUILDINGS.—The following 

4 tax credit amounts shall be awarded for certified 

5 zero-energy buildings— 

6 ‘‘(A) for a residential building with no 

7 more than four dwelling units, $5,000 per 

8 dwelling unit; 

9 ‘‘(B) for a residential building with five or 

10 more dwelling units, $3,500 per dwelling unit; 

11 and 

12 ‘‘(C) for a commercial building that is a 

13 zero-energy building for a period of 12 contin14 uous months starting after the building is at 

15 least 50 percent occupied, $3 per square foot of 

16 floor area, provided that a zero-energy building 

17 may also receive the zero-energy-ready building 

18 incentive if it meets the criteria for this incen19 tive. 

20 ‘‘(3) DEEP ENERGY RETROFITS.—The following 

21 tax credit amounts shall be awarded to buildings 

22 upon completion of a deep energy retrofit— 

23 ‘‘(A) for a residential building, $10,000 

24 per dwelling unit, up to a maximum of 

25 $1,000,000 per building; and 

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1 ‘‘(B) for a commercial building, $25 per 

2 square foot of floor area, up to a maximum of 

3 $2,000,000 per building. 

4 ‘‘(d) TAX CREDIT RECIPIENT.— 

5 ‘‘(1) IN GENERAL.—The person eligible to re6 ceive a tax credit under this section shall be— 

7 ‘‘(A) for a new residential building, the 

8 builder; 

9 ‘‘(B) for an existing residential building 

10 that has undergone a deep energy retrofit, the 

11 builder; 

12 ‘‘(C) for a new commercial building, the 

13 building owner; and 

14 ‘‘(D) for an existing commercial building 

15 that has undergone a deep energy retrofit, the 

16 building owner. 

17 ‘‘(2) TRANSFER OF CREDIT.—A building owner 

18 who is eligible to receive a tax credit under subpara19 graphs (C) and (D) of paragraph (1) may transfer 

20 such tax credit to the architect, builder, or con21 tractor. 

22 ‘‘(e) EXCLUSIONS.—A building project is not eligible 

23 for tax credits under this section if the owner or builder 

24 has used another Federal tax incentive for the same 

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1 project, including incentives under sections 25C, 25D, and 

2 179D of this title. 

3 ‘‘(f) SUNSET OF TAX CREDIT AUTHORITY.—The tax 

4 credit authority under this section shall terminate— 

5 ‘‘(1) for zero-energy and zero-energy-ready resi6 dential buildings, one year after the Secretary of En7 ergy determines by rule that such buildings ac8 counted for at least 20 percent of new residential 

9 buildings in the most recent calendar year; 

10 ‘‘(2) for zero-energy and zero-energy-ready com11 mercial buildings, one year after the Secretary of 

12 Energy determines by rule that such buildings ac13 counted for at least 20 percent of new commercial 

14 building construction in the most recent calendar 

15 year; 

16 ‘‘(3) for deep energy retrofits to residential 

17 buildings, one year after the Secretary of Energy de18 termines by rule that at least 10 percent of units at 

19 residential buildings have undergone such retrofits; 

20 and 

21 ‘‘(4) for deep energy retrofits to commercial 

22 buildings, one year after the Secretary of Energy de23 termines by rule that at least 10 percent of the floor 

24 area of commercial buildings has undergone such 

25 retrofits. 

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1 ‘‘(g) RULEMAKING.—Not later than one year after 

2 enactment of this section, the Secretary, in coordination 

3 with the Secretary of Energy, shall promulgate rules to 

4 implement this section. 

5 ‘‘(h) REPORT TO CONGRESS.—Not later than two 

6 years after enactment of this section, and each calendar 

7 year thereafter, the Secretary shall report to Congress on 

8 the use of tax credits under this section broken down by 

9 the categories in subsection (c), which report shall in10 clude— 

11 ‘‘(1) the dollar value of tax credits awarded to 

12 date and in the prior calendar year; and 

13 ‘‘(2) the number of units at residential build14 ings and the number of square feet of floor area in 

15 commercial buildings for which tax credits were 

16 awarded to date and in the prior year calendar 

17 year.’’. 

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

19 the Internal Revenue Code of 1986 is further amended 

20 by inserting after the item relating to section 45U (as 

21 added by this Act) the following: 

‘‘Sec. 45V. Deep energy retrofits and zero-energy commercial and residential 

buildings.’’. 

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1 SEC. 208. EXTENSION OF PUBLICLY TRADED PARTNERSHIP 

2 OWNERSHIP STRUCTURE TO RENEWABLE EN3 ERGY PROJECTS. 

4 (a) IN GENERAL.—Section 7704(d)(1)(E) of the In5 ternal Revenue Code of 1986, as amended by section 134 

6 of this Act, is further amended by adding after clause (v) 

7 the following: 

8 ‘‘(vi) The generation of electric power 

9 (including the leasing of tangible personal 

10 property used for such generation) exclu11 sively utilizing any resource described in 

12 section 45(c)(1) or energy property de13 scribed in section 48 (determined without 

14 regard to any termination date) or, in the 

15 case of a facility described in paragraph 

16 (3) or (7) of section 45(d) (determined 

17 without regard to any placed in service 

18 date or date by which construction of the 

19 facility is required to begin), the accepting 

20 or processing of such resource. 

21 ‘‘(vii) The sale of electric power, ca22 pacity, resource adequacy, demand re23 sponse capabilities, or ancillary services 

24 that is produced or made available from 

25 any equipment or facility (operating as a 

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1 single unit or as an aggregation of units) 

2 the principal function of which is to— 

3 ‘‘(I) use mechanical, chemical, 

4 electrochemical, hydroelectric, or ther5 mal processes to store energy that was 

6 generated at one time for conversion 

7 to electricity at a later time, or 

8 ‘‘(II) store thermal energy for di9 rect use for heating or cooling at a 

10 later time in a manner that avoids the 

11 need to use electricity at that later 

12 time. 

13 ‘‘(viii) The generation, storage, or dis14 tribution of thermal energy exclusively uti15 lizing property described in section 

16 48(c)(3) (determined without regard to 

17 subparagraphs (B) and (D) thereof and 

18 without regard to any placed in service 

19 date). 

20 ‘‘(ix) The generation, storage, or dis21 tribution of thermal energy exclusively 

22 using any resource described in section 

23 45(c)(1) or energy property described in 

24 clause (i) or (iii) of section 48(a)(3)(A). 

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1 ‘‘(x) The use of recoverable waste en2 ergy, as defined in section 371(5) of the 

3 Energy Policy and Conservation Act (42 

4 U.S.C. 6341(5)).’’. 

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

6 this section shall apply to taxable years beginning after 

7 December 31, 2020. 

8 SEC. 209. MANUFACTURER CREDIT FOR HIGH-EFFICIENCY 

9 HEAT PUMPS AND HEAT PUMP WATER HEAT10 ERS. 

11 (a) IN GENERAL.—The Internal Revenue Code of 

12 1986 is further amended by adding after section 45V (as 

13 added by this Act) the following new section: 

14 ‘‘SEC. 45W. MANUFACTURER CREDIT FOR HIGH-EFFI15 CIENCY HEAT PUMPS AND HEAT PUMP 

16 WATER HEATERS. 

17 ‘‘(a) CREDIT AMOUNTS.— 

18 ‘‘(1) IN GENERAL.—For purposes of section 38, 

19 the energy efficient heat pump credit determined 

20 under this section for any taxable year is an amount 

21 equal to the sum of the credit amounts determined 

22 under paragraph (2) for each type of qualified en23 ergy efficient heat pump produced by the taxpayer 

24 during the calendar year ending with or within the 

25 taxable year. 

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1 ‘‘(2) CALCULATION OF CREDITS.—The credit 

2 amount determined for any type of qualified energy 

3 efficient appliance is— 

4 ‘‘(A) the applicable amount determined 

5 under subsection (b) with respect to such type, 

6 multiplied by 

7 ‘‘(B) the eligible production for such type 

8 under subsection (c). 

9 ‘‘(b) APPLICABLE AMOUNT.—For purposes of sub10 section (a): 

11 ‘‘(1) CONSUMER HEAT PUMP WATER HEAT12 ERS.—The applicable amount is $600 in the case of 

13 a consumer heat pump water heater that is manu14 factured in calendar years 2022 through 2030 and 

15 that has a Uniform Energy Factor of 3.3 or more 

16 for electric water heaters and 1.3 or more for gas 

17 water heaters. 

18 ‘‘(2) COMMERCIAL HEAT PUMP WATER HEAT19 ERS.—The applicable amount is $600 in the case of 

20 a commercial heat pump water heater manufactured 

21 in calendar years 2022 through 2030 and that has 

22 a Coefficient of Performance of 3.0 or more for elec23 tric water heaters and 1.3 or more for gas water 

24 heaters. 

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1 ‘‘(3) CONSUMER UNITARY HEAT PUMPS.—The 

2 applicable amount is $800 in the case of a consumer 

3 unitary heat pump that— 

4 ‘‘(A) is manufactured in calendar years 

5 2022 through 2030, 

6 ‘‘(B) in the case of an electric heat pump 

7 meets either— 

8 ‘‘(i) the most recent requirements of 

9 the Energy Star Most Efficient Specifica10 tion promulgated by the United States En11 vironmental Protection Agency before the 

12 date of enactment of this section, or 

13 ‘‘(ii) the most recent Cold Climate 

14 Air-Source Heat Pump Specification pro15 mulgated by Northeast Energy Efficiency 

16 Partnerships before the date of enactment 

17 of this section, and 

18 ‘‘(C) in the case of a gas heat pump, has 

19 an Annual Fuel Utilization Efficiency of 140 

20 percent or more. 

21 ‘‘(4) COMMERCIAL HEAT PUMPS.—The applica22 ble amount is $24 per thousand British Thermal 

23 Units of heating capacity measured at a 17 degree 

24 Fahrenheit ambient temperature in the case of a 

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1 endar years 2022 through 2030 and that has a Co2 efficient of Performance of 2.3 or more at a 17 de3 gree F ambient temperature for electric heat pumps, 

4 and 1.2 or more at a 17 degree F ambient tempera5 ture for gas heat pumps. 

6 ‘‘(5) INDUSTRIAL HEAT PUMPS.—The applica7 ble amount is $36 per thousand British Thermal 

8 Units of heating capacity for heat pumps with a 

9 heating capacity of 2,400 thousand British Thermal 

10 Units or less and $18 per thousand British Thermal 

11 Units of heating capacity for heat pumps with a 

12 heating capacity above 2,400 thousand British Ther13 mal Units in the case of an industrial heat pump 

14 that is manufactured and installed in an industrial 

15 facility in calendar years 2022 through 2030 and 

16 that has a Coefficient of Performance of 2.0 or 

17 more. 

18 ‘‘(c) ELIGIBLE PRODUCTION.—The eligible produc19 tion in a calendar year with respect to each type of energy 

20 efficient heat pump is— 

21 ‘‘(1) the number of heat pumps of such type 

22 that are produced by the taxpayer in the United 

23 States during such calendar year, less 

24 ‘‘(2) the average number of heat pumps of such 

25 type that were produced by the taxpayer (or any 

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1 predecessor) in the United States during the pre2 ceding 2-calendar year period. 

3 ‘‘(d) TYPES OF ENERGY EFFICIENT HEAT PUMPS.— 

4 For purposes of this section, the types of energy efficient 

5 heat pumps are— 

6 ‘‘(1) consumer heat pump water heaters de7 scribed in subsection (b)(1), 

8 ‘‘(2) commercial heat pump water heaters de9 scribed in subsection (b)(2), 

10 ‘‘(3) consumer unitary heat pumps described in 

11 subsection (b)(3), 

12 ‘‘(4) commercial heat pumps described in sub13 section (b)(4), and 

14 ‘‘(5) industrial heat pumps described in sub15 section (b)(5). 

16 ‘‘(e) LIMITATIONS.— 

17 ‘‘(1) AGGREGATE CREDIT AMOUNT ALLOWED.— 

18 The aggregate amount of credit allowed under sub19 section (a) with respect to a taxpayer for any tax20 able year shall not exceed $250,000,000, reduced by 

21 the amount of the credit allowed under subsection 

22 (a) to the taxpayer (or any predecessor) for all prior 

23 taxable years beginning after December 31, 2021. 

24 ‘‘(2) LIMITATION BASED ON GROSS RE25 CEIPTS.—The credit allowed under subsection (a) 

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1 with respect to a taxpayer for the taxable year shall 

2 not exceed an amount equal to 4 percent of the aver3 age annual gross receipts of the taxpayer for the 3 

4 taxable years preceding the taxable year in which 

5 the credit is determined. 

6 ‘‘(3) GROSS RECEIPTS.—For purposes of this 

7 subsection, the rules of paragraphs (2) and (3) of 

8 section 448(c) shall apply. 

9 ‘‘(f) ADJUSTMENT OF ENERGY EFFICIENCY CRI10 TERIA.—No later than December 31, 2022, and every two 

11 years thereafter, the Secretary, in consultation with the 

12 Secretary of Energy, shall review the efficiency levels in 

13 section (b) and revise these levels upward if necessary to 

14 include only the most efficient commercially available heat 

15 pumps of each type, while ensuring that at least three 

16 manufacturers are represented in each type across a range 

17 of product heating capacities. 

18 ‘‘(g) TEST PROCEDURES.— 

19 ‘‘(1) The Department of Energy shall develop 

20 test procedures to determine Coefficient of Perform21 ance for— 

22 ‘‘(A) gas commercial heat pump water 

23 heaters, 

24 ‘‘(B) gas commercial heat pumps, and 

25 ‘‘(C) industrial heat pumps. 

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1 ‘‘(2) Such test procedures shall build upon the 

2 foundation of relevant current American National 

3 Standard Institute and International Organization 

4 of Standard test procedures. 

5 ‘‘(h) DEFINITIONS.—For purposes of this section: 

6 ‘‘(1) QUALIFIED ENERGY EFFICIENT HEAT

7 PUMP.—The term ‘qualified energy efficient heat 

8 pump’ means— 

9 ‘‘(A) any consumer heat pump water heat10 er described in subsection (b)(1), 

11 ‘‘(B) any commercial heat pump water 

12 heater described in subsection (b)(2), 

13 ‘‘(C) any consumer unitary heat pump de14 scribed in subsection (b)(3), 

15 ‘‘(D) any commercial heat pump described 

16 in subsection (b)(4), and 

17 ‘‘(E) any industrial heat pump described in 

18 subsection (b)(5). 

19 ‘‘(2) CONSUMER HEAT PUMP WATER HEAT20 ER.—The term ‘consumer heat pump water heater’ 

21 means a water heater that uses a heat pump to heat 

22 water and has an electric input of 12 Kilowatt or 

23 less or a gas input of 75,000 British Thermal Units 

24 per hour or less, measured in accordance with appli25 cable Department of Energy test procedures. 

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1 ‘‘(3) COMMERCIAL HEAT PUMP WATER HEAT2 ERS.—The term ‘commercial heat pump water heat3 er’ means a water heater that uses a heat pump to 

4 heat water and has an electric input of more than 

5 12 Kilowatt or a gas input of more than 75,000 

6 British Thermal Units per hour, measured in ac7 cordance with applicable Department of Energy test 

8 procedures. 

9 ‘‘(4) CONSUMER UNITARY HEAT PUMP.—The 

10 term ‘consumer unitary heat pump’ means a heat 

11 pump designed to provide space heating and cooling 

12 with a cooling capacity of 65,000 British Thermal 

13 Units per hour or less, measured in accordance with 

14 the applicable Department of Energy test proce15 dures. 

16 ‘‘(5) COMMERCIAL HEAT PUMP.—The term 

17 ‘commercial heat pump’ means a heat pump de18 signed to provide space heating and cooling with a 

19 cooling capacity of more than 65,000 British Ther20 mal Units per hour, measured in accordance with 

21 the applicable Department of Energy test proce22 dures. 

23 ‘‘(6) INDUSTRIAL HEAT PUMP.—The term ‘in24 dustrial heat pump’ means a heat pump that up25 grades industrial waste heat to a higher temperature 

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1 such that the delivered heat is produced and sup2 plied to the facility more efficiently than conven3 tional heating methods, such as a steam or electric 

4 resistance boiler. 

5 ‘‘(7) PRODUCED.—The term ‘produced’ in6 cludes manufactured. 

7 ‘‘(8) UNIFORM ENERGY FACTOR.—The term 

8 ‘Uniform Energy Factor’ is a metric used to meas9 ure the efficiency of consumer water heaters, with 

10 details specified in applicable Department of Energy 

11 test procedures. 

12 ‘‘(9) COEFFICIENT OF PERFORMANCE.—The 

13 term ‘Coefficient of Performance’ means the ratio of 

14 heat output to energy input, with details specified in 

15 applicable Department of Energy test procedures. 

16 For gas commercial heat pump water heaters, until 

17 there is a Department of Energy test procedure, 

18 American National Standards Institute and Amer19 ican Society of Heating, Refrigerating and Air-Con20 ditioning Engineers Standard 118.1 shall be used. 

21 For gas commercial heat pumps, until there is a De22 partment of Energy test procedure, American Na23 tional Standards Standard Z21.40.4 shall be used. 

24 For industrial heat pumps, until there is a Depart25 ment of Energy test procedure, manufacturers may 

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1 use their own tests, provided they publicly post the 

2 test conditions and assumptions they used in devel3 oping their stated Coefficient of Performance values. 

4 ‘‘(i) SPECIAL RULES.—For purposes of this section: 

5 ‘‘(1) IN GENERAL.—Rules similar to the rules 

6 of subsections (c), (d), and (e) of section 52 shall 

7 apply. 

8 ‘‘(2) CONTROLLED GROUP.— 

9 ‘‘(A) IN GENERAL.—All persons treated as 

10 a single employer under subsection (a) or (b) of 

11 section 52 or subsection (m) or (o) of section 

12 414 shall be treated as a single producer. 

13 ‘‘(B) INCLUSION OF FOREIGN CORPORA14 TIONS.—For purposes of subparagraph (A), in 

15 applying subsections (a) and (b) of section 52 

16 to this section, section 1563 shall be applied 

17 without regard to subsection (b)(2)(C) thereof. 

18 ‘‘(3) VERIFICATION.—No amount shall be al19 lowed as a credit under subsection (a) with respect 

20 to which the taxpayer has not submitted such infor21 mation or certification as the Secretary, in consulta22 tion with the Secretary of Energy, determines nec23 essary. 

24 ‘‘(4) PRODUCTION IN UNITED STATES.—The re25 quirement for production in the United States in 

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1 section (c) does not take effect until January 1, 

2 2024.’’. 

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

4 for subpart D of part IV of subchapter A of chapter 1 

5 is further amended by adding after the item relating to 

6 section 45V the following new item: 

‘‘Sec. 45W. Manufacturer credit for high-efficiency heat pumps and heat pump 

water heaters.’’. 

7 SEC. 210. OTHER AUTHORIZATIONS OF APPROPRIATIONS. 

8 (a) AMENDMENT TO AMERICA COMPETES ACT.— 

9 Section 5012(o)(2) of the America COMPETES Act (42 

10 U.S.C. 16538(o)(2)) is amended— 

11 (1) in subparagraph (D), by striking ‘‘; and’’ 

12 and inserting ‘‘;’’; 

13 (2) in subparagraph (E), by striking ‘‘2013.’’ 

14 and inserting ‘‘2013;’’; and 

15 (3) by adding at the end the following: 

16 ‘‘(F) $569,000,000 for fiscal year 2021; 

17 ‘‘(G) $713,000,000 for fiscal year 2022; 

18 ‘‘(H) $856,000,000 for fiscal year 2023; 

19 and 

20 ‘‘(I) $1,000,000,000 for fiscal year 2024.’’. 

21 (b) REGIONAL INNOVATION MODELS.—There are au22 thorized to be appropriated to the Secretary for purposes 

23 of developing regional innovation models— 

24 (1) $100,000,000 for fiscal year 2021; 

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1 (2) $200,000,000 for fiscal year 2022; 

2 (3) $300,000,000 for fiscal year 2023; and 

3 (4) $500,000,000 for fiscal year 2024. 

4 (c) GRID MODERNIZATION.—There are authorized to 

5 be appropriated to the Secretary for purposes of research, 

6 development, demonstration, analysis, technology valida7 tion, market transformation, and technical assistance to 

8 support grid modernization— 

9 (1) $238,000,000 for fiscal year 2021; 

10 (2) $375,000,000 for fiscal year 2022; 

11 (3) $513,000,000 for fiscal year 2023; and 

12 (4) $650,000,000 for fiscal year 2024. 

13 (d) ADVANCED LAND-BASED AND OFFSHORE WIND

14 POWER.—There are authorized to be appropriated to the 

15 Secretary for the purposes of research, development, dem16 onstration, analysis, technology validation, market trans17 formation, and technical assistance to support advanced 

18 land-based and offshore wind power— 

19 (1) $178,000,000 for fiscal year 2021; 

20 (2) $252,000,000 for fiscal year 2022; 

21 (3) $326,000,000 for fiscal year 2023; and 

22 (4) $400,000,000 for fiscal year 2024. 

23 (e) ADVANCED SOLAR POWER.—There are author24 ized to be appropriated to the Secretary for the purposes 

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1 nology validation, market transformation, and technical 

2 assistance to support advanced solar power— 

3 (1) $360,000,000 for fiscal year 2021; 

4 (2) $440,000,000 for fiscal year 2022; 

5 (3) $520,000,000 for fiscal year 2023; and 

6 (4) $600,000,000 for fiscal year 2024. 

7 (f) MECHANICAL, CHEMICAL, AND THERMAL STOR8 AGE TECHNOLOGY.—There are authorized to be appro9 priated to the Secretary for the purposes of research, de10 velopment, demonstration, analysis, technology validation, 

11 market transformation, and technical assistance to sup12 port mechanical, chemical, and thermal storage tech13 nology— 

14 (1) $150,000,000 for fiscal year 2021; 

15 (2) $150,000,000 for fiscal year 2022; 

16 (3) $150,000,000 for fiscal year 2023; and 

17 (4) $150,000,000 for fiscal year 2024. 

18 (g) BUILDINGS.—There are authorized to be appro19 priated to the Secretary for the purposes of research, de20 velopment, demonstration, analysis, technology validation, 

21 market transformation, and technical assistance to sup22 port technologies that improve the energy efficiency of 

23 building equipment, the building envelope, building con24 trols, and that improve information sharing between the 

25 building and the grid, which technologies may include enVerDate Sep 11 2014 21:31 Feb 13, 2021 Jkt 019200 PO 00000 Frm 00092 Fmt 6652 Sfmt 6201 E:\BILLS\H9054.IH H9054
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1 ergy efficiency, demand response and electrification tech2 nologies in residential, commercial, and industrial build3 ings— 

4 (1) $381,000,000 for fiscal year 2021; 

5 (2) $478,000,000 for fiscal year 2022; 

6 (3) $574,000,000 for fiscal year 2023; and 

7 (4) $670,000,000 for fiscal year 2024. 

8 (h) INDUSTRY.—There are authorized to be appro9 priated to the Secretary for the purposes of research, de10 velopment, demonstration, analysis, technology validation, 

11 market transformation, and technical assistance to sup12 port technologies to reduce emissions in industrial and 

13 manufacturing processes, including such technologies re14 lating to energy efficiency and electrification— 

15 (1) $381,000,000 for fiscal year 2021; 

16 (2) $478,000,000 for fiscal year 2022; 

17 (3) $574,000,000 for fiscal year 2023; and 

18 (4) $840,000,000 for fiscal year 2024. 

19 (i) ENHANCED GEOTHERMAL TECHNOLOGIES.— 

20 There are authorized to the Secretary for the purposes 

21 of research, development, and demonstration of enhanced 

22 geothermal technologies an increase in the amount from 

23 fiscal year 2019 appropriations by $100,000,000 for each 

24 year until fiscal year 2025, of which— 

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1 (1) $70,000,000 is authorized for the Secretary 

2 to use each year to establish a supercritical en3 hanced geothermal system demonstration program; 

4 and 

5 (2) $30,000,000 is authorized for the Secretary 

6 to use each year in collaboration with the National 

7 Laboratories for supercritical enhanced geothermal 

8 systems research and development. 

9 TITLE III—EXISTING AND AD10 VANCED NUCLEAR POWER 

11 PLANTS 

12 SEC. 301. ZERO-EMISSIONS CREDIT PROGRAM. 

13 (a) ESTABLISHMENT.—Not later than 2 years after 

14 the date of enactment of this section, the Secretary shall 

15 establish a program to be known as the ‘‘Zero-Emissions 

16 Credit Program’’. 

17 (b) ISSUANCE OF CREDITS.—Not later than March 

18 1 of each calendar year beginning after the date on which 

19 the Zero-Emissions Credit Program is established, under 

20 the Zero-Emissions Credit Program the Secretary shall 

21 issue an amount of zero-emissions credits to each owner 

22 or operator of a qualified nuclear power plant in the quan23 tity that is equal to the amount of the megawatt hours 

24 of electricity sold by such owner or operator to an orga25 nized power market in the prior year. 

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1 (c) PAYMENT FOR RECEIPT OF CREDITS.— 

2 (1) IN GENERAL.—Except as provided in para3 graphs (2), (3), and (4), under the Zero-Emissions 

4 Credit Program the Secretary shall pay an owner or 

5 operator of a qualified nuclear power plant $13.25 

6 for each zero-emissions credit an owner or operator 

7 submits to the Secretary. 

8 (2) ADJUSTMENTS FOR INFLATION.—Each 

9 year, the Secretary shall adjust the amount to be 

10 paid under the Zero-Emissions Credit Program for 

11 each zero-emissions credit to account for the effects 

12 of inflation. 

13 (3) REDUCTION IN VALUE OF CREDIT.—If the 

14 price for the sale of electricity increases such that 

15 payments for zero-emissions credits are no longer 

16 needed to prevent the retirement of a qualified nu17 clear power plant, the Secretary shall reduce the 

18 amount to be paid for each zero-emissions credit for 

19 such qualifying nuclear power plant in accordance 

20 with such change in price. 

21 (4) OFFSET FOR VALUE OF CLEAN ELEC22 TRICITY CREDITS.—The Secretary shall reduce the 

23 payment to a qualified nuclear power plant for a 

24 zero-emissions credit by the value of any clean elec25 tricity credits issued to the plant for the same quanVerDate Sep 11 2014 21:31 Feb 13, 2021 Jkt 019200 PO 00000 Frm 00095 Fmt 6652 Sfmt 6201 E:\BILLS\H9054.IH H9054
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1 tity of megawatt hours pursuant to the Federal 

2 Clean Electricity Standard program established 

3 under section 611 of the Public Utility Regulatory 

4 Policies Act of 1978. 

5 (d) TERMINATION DATE.—The Zero-Emissions 

6 Credit Program shall terminate on the date that is 5 years 

7 after the program effective date of the Federal Clean Elec8 tricity Standard established under section 611 of the Pub9 lic Utility Regulatory Policies Act of 1978. 

10 (e) DEFINITIONS.—In this section: 

11 (1) ORGANIZED POWER MARKET.—The term 

12 ‘‘organized power market’’ means any market— 

13 (A) for the wholesale sale of electricity; 

14 and 

15 (B) that is controlled by a regional trans16 mission organization or an independent system 

17 operator as defined in section 3 of the Federal 

18 Power Act (16 U.S.C. 796). 

19 (2) QUALIFIED NUCLEAR POWER PLANT.— 

20 (A) IN GENERAL.—The term ‘‘qualified 

21 nuclear power plant’’ means any nuclear power 

22 plant that the Secretary determines, based on 

23 an application submitted by such plant to the 

24 Secretary, is not financially viable or will other25 wise be required to retire if it does not receive 

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1 zero-emissions credits under the Zero-Emissions 

2 Credit Program. 

3 (B) EXCLUSION.—The term ‘‘qualified nu4 clear power plant’’ does not include a nuclear 

5 power plant that receives a tax credit under sec6 tion 48 of the Internal Revenue Code of 1986. 

7 (3) ZERO-EMISSIONS CREDIT.—The term ‘‘zero8 emissions credit’’ means a credit issued by the Sec9 retary under the Zero-Emissions Credit Program 

10 that represents 1 megawatt of electricity sold by the 

11 owner or operator of a qualified nuclear power plant 

12 to an organized power market. 

13 (f) RULEMAKING.—Not later than one year after the 

14 date of enactment of this section, the Secretary shall final15 ize rules for— 

16 (1) the application and decision process for 

17 qualified nuclear power plants; and 

18 (2) the schedule and process for issuance of 

19 credits and periodic review and adjustment of 

20 issuances. 

21 SEC. 302. INVESTMENT TAX CREDIT FOR NUCLEAR ENERGY 

22 PROPERTY. 

23 (a) IN GENERAL.—Section 48(a)(3)(A) of the Inter24 nal Revenue Code of 1986 is amended— 

25 (1) in clause (vi), by striking ‘‘or’’; 

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1 (2) in clause (vii), by inserting ‘‘or’’ at the end; 

2 and 

3 (3) by adding at the end the following new 

4 clause: 

5 ‘‘(viii) qualified nuclear energy prop6 erty,’’. 

7 (b) ELIGIBLE FOR 30-PERCENT CREDIT.—Section 

8 48(a)(2)(A)(i) of such Code is amended by striking ‘‘and’’ 

9 in subclause (III) and by adding at the end the following 

10 new subclause: 

11 ‘‘(V) energy property described in 

12 paragraph (3)(A)(viii) but only with 

13 respect to property placed in service 

14 before January 1, 2024, and’’. 

15 (c) QUALIFIED NUCLEAR ENERGY PROPERTY.—Sec16 tion 48(c) of such Code is amended by adding at the end 

17 the following new paragraph: 

18 ‘‘(5) QUALIFIED NUCLEAR ENERGY PROP19 ERTY.— 

20 ‘‘(A) IN GENERAL.—The term ‘qualified 

21 nuclear energy property’ means any amounts 

22 paid or incurred for the refueling of, and any 

23 other expenditures described in section 263(a) 

24 with respect to, a qualifying nuclear power 

25 plant. 

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1 ‘‘(B) QUALIFYING NUCLEAR POWER

2 PLANT.—The term ‘qualifying nuclear power 

3 plant’ means a nuclear power plant which— 

4 ‘‘(i) submitted an application for li5 cense renewal to the Nuclear Regulatory 

6 Commission in accordance with part 54 of 

7 title 10, Code of Federal Regulations, be8 fore January 1, 2026, or 

9 ‘‘(ii) certified to the Secretary (at 

10 such time and in such form and in such 

11 manner as the Secretary prescribes) that 

12 such plant will submit an application for li13 cense renewal to the Nuclear Regulatory 

14 Commission in accordance with part 54 of 

15 title 10, Code of Federal Regulations, be16 fore January 1, 2026. 

17 ‘‘(C) SPECIAL RULES.— 

18 ‘‘(i) BASIS.—For purposes of sub19 section (a), the cumulative amounts paid 

20 or incurred by the taxpayer during the tax21 able year with respect to a qualifying nu22 clear power plant, which are properly 

23 chargeable to capital account, shall be 

24 treated as the basis of the qualified nuclear 

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1 energy property placed in service for that 

2 taxable year. 

3 ‘‘(ii) PLACED IN SERVICE.—For pur4 poses of subsection (a), qualified nuclear 

5 energy property shall be treated as having 

6 been placed in service on the last day of 

7 the taxable year in which the taxpayer 

8 pays or incurs such amounts described in 

9 clause (i). 

10 ‘‘(iii) RECAPTURE.—The Secretary 

11 shall, by regulations, provide for recap12 turing the benefit of any credit allowable 

13 under subsection (a) to any qualifying nu14 clear power plant which made a certifi15 cation pursuant to subparagraph (B) but 

16 does not file an application of license re17 newal to the Nuclear Regulatory Commis18 sion in accordance with part 54 of title 10, 

19 Code of Federal Regulations, before Janu20 ary 1, 2026.’’. 

21 (d) PHASEOUT OF 30-PERCENT CREDIT RATE FOR

22 NUCLEAR ENERGY PROPERTY.—Section 48(a) of such 

23 Code is amended by adding at the end the following new 

24 paragraph: 

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1 ‘‘(7) PHASEOUT FOR QUALIFIED NUCLEAR EN2 ERGY PROPERTY.—In the case of qualified nuclear 

3 energy property, the energy percentage determined 

4 under paragraph (2) shall be equal to— 

5 ‘‘(A) in the case of any property placed in 

6 service after December 31, 2023, and before 

7 January 1, 2025, 26 percent, and 

8 ‘‘(B) in the case of any property placed in 

9 service after December 31, 2022, and before 

10 January 1, 2026, 22 percent.’’. 

11 (e) COORDINATION WITH CREDIT FOR PRODUCTION

12 FROM ADVANCED NUCLEAR POWER FACILITIES.—The 

13 last sentence of section 48(a)(3) of such Code is amended 

14 by inserting ‘‘or 45J’’ after ‘‘section 45’’. 

15 (f) TRANSFER OF CREDIT BY CERTAIN PUBLIC EN16 TITIES.— 

17 (1) IN GENERAL.—Section 48 of such Code is 

18 amended by adding at the end the following new 

19 subsection: 

20 ‘‘(e) SPECIAL RULE FOR QUALIFIED NUCLEAR EN21 ERGY PROPERTY.— 

22 ‘‘(1) IN GENERAL.—In the case of any qualified 

23 nuclear energy property, if, with respect to a credit 

24 under subsection (a) for any taxable year— 

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1 ‘‘(A) the taxpayer would be a qualified 

2 public entity, and 

3 ‘‘(B) such entity elects the application of 

4 this subsection for such taxable year with re5 spect to all (or any portion specified in such 

6 election) of such credit, the eligible project part7 ner specified in such election (and not the 

8 qualified public entity) shall be treated as the 

9 taxpayer for purposes of this title with respect 

10 to such credit (or such portion thereof). 

11 ‘‘(2) DEFINITIONS.—For purposes of this sub12 section: 

13 ‘‘(A) QUALIFIED PUBLIC ENTITY.—The 

14 term ‘qualified public entity’ means— 

15 ‘‘(i) a Federal, State, or local govern16 ment entity, or any political subdivision, 

17 agency, or instrumentality thereof, 

18 ‘‘(ii) a mutual or cooperative electric 

19 company described in section 501(c)(12) or 

20 section 1381(a)(2), or 

21 ‘‘(iii) a not-for-profit electric utility 

22 which has or had received a loan or loan 

23 guarantee under the Rural Electrification 

24 Act of 1936. 

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1 ‘‘(B) ELIGIBLE PROJECT PARTNER.—The 

2 term ‘eligible project partner’ means— 

3 ‘‘(i) any person responsible for oper4 ating, maintaining, or repairing the quali5 fying nuclear power plant to which the 

6 credit under subsection (a) relates, 

7 ‘‘(ii) any person who participates in 

8 the provision of the nuclear steam supply 

9 system to the qualifying nuclear power 

10 plant to which the credit under subsection 

11 (a) relates, 

12 ‘‘(iii) any person who participates in 

13 the provision of nuclear fuel to the quali14 fying nuclear power plant to which the 

15 credit under subsection (a) relates, or 

16 ‘‘(iv) any person who has an owner17 ship interest in such facility. 

18 ‘‘(3) SPECIAL RULES.— 

19 ‘‘(A) APPLICATION TO PARTNERSHIPS.—In 

20 the case of a credit under subsection (a) which 

21 is determined with respect to qualified nuclear 

22 energy property at the partnership level— 

23 ‘‘(i) for purposes of paragraph (1)(A), 

24 a qualified public entity shall be treated as 

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1 the taxpayer with respect to such entity’s 

2 distributive share of such credit, and 

3 ‘‘(ii) the term ‘eligible project partner’ 

4 shall include any partner of the partner5 ship. 

6 ‘‘(B) TAXABLE YEAR IN WHICH CREDIT

7 TAKEN INTO ACCOUNT.—In the case of any 

8 credit (or portion thereof) with respect to which 

9 an election is made under subsection (e), such 

10 credit shall be taken into account in the first 

11 taxable year of the eligible project partner end12 ing with, or after, the qualified public entity’s 

13 taxable year with respect to which the credit 

14 was determined. 

15 ‘‘(C) TREATMENT OF TRANSFER UNDER

16 PRIVATE USE RULES.—For purposes of section 

17 141(b)(1), any benefit derived by an eligible 

18 project partner in connection with an election 

19 under this subsection shall not be taken into ac20 count as a private business use.’’. 

21 (2) SPECIAL RULE FOR PROCEEDS OF TRANS22 FERS FOR MUTUAL OR COOPERATIVE ELECTRIC

23 COMPANIES.—Section 501(c)(12) of such Code is 

24 amended by adding at the end the following new 

25 subparagraph: 

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1 ‘‘(I) In the case of a mutual or cooperative 

2 electric company described in this paragraph or 

3 an organization described in section 1381(a)(2), 

4 income received or accrued in connection with 

5 an election under section 48(e) shall be treated 

6 as an amount collected from members for the 

7 sole purpose of meeting losses and expenses.’’. 

8 (g) CONFORMING AMENDMENT.—Section 

9 48(a)(2)(A) of such Code is amended by striking ‘‘para10 graph (6)’’ and inserting ‘‘paragraphs (6) and (7)’’. 

11 (h) EFFECTIVE DATE.—The amendments made by 

12 this section shall apply to periods after December 31, 

13 2019, in taxable years ending after such date, under rules 

14 similar to the rules of section 48(m) of the Internal Rev15 enue Code of 1986 (as in effect on the day before the en16 actment of the Revenue Reconciliation Act of 1990). 

17 SEC. 303. EXPANDING FEDERAL CLEAN ELECTRICITY PUR18 CHASING REQUIREMENTS. 

19 (a) AMENDMENTS TO THE FEDERAL PURCHASE RE20 QUIREMENTS OF THE ENERGY POLICY ACT OF 2005.— 

21 Section 203 of the Energy Policy Act of 2005 (42 U.S.C. 

22 15852) is amended— 

23 (1) in subsection (a), by striking ‘‘, the fol24 lowing amounts shall be renewable energy:’’ and inVerDate Sep 11 2014 21:31 Feb 13, 2021 Jkt 019200 PO 00000 Frm 00105 Fmt 6652 Sfmt 6201 E:\BILLS\H9054.IH H9054
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1 serting ‘‘, such amount shall be made up of the fol2 lowing:’’; 

3 (2) in subsection (a)(1), by inserting ‘‘shall be 

4 renewable energy’’ after ‘‘2009’’; 

5 (3) in subsection (a)(2), by inserting ‘‘shall be 

6 renewable energy’’ after ‘‘2012’’; 

7 (4) in subsection (a)(3), by striking ‘‘7.5 per8 cent in fiscal year 2013 and each fiscal year there9 after.’’ and inserting ‘‘7.5 percent in fiscal years 

10 2013 through 2019 shall be renewable energy.’’; 

11 (5) in subsection (a), by adding at the end the 

12 following: 

13 ‘‘(4) Not less than 35 percent in fiscal year 

14 2020 and each year thereafter shall be clean elec15 tricity.’’; 

16 (6) in subsection (b), by adding at the end the 

17 following: 

18 ‘‘(3) CLEAN ELECTRICITY.—The term ‘clean 

19 electricity’ means— 

20 ‘‘(A) renewable energy; 

21 ‘‘(B) any electric energy generated by a 

22 nuclear power plant; and 

23 ‘‘(C) the percentage of electric energy gen24 erated by a power plant that equals the perVerDate Sep 11 2014 21:31 Feb 13, 2021 Jkt 019200 PO 00000 Frm 00106 Fmt 6652 Sfmt 6201 E:\BILLS\H9054.IH H9054
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1 centage of carbon dioxide emissions of such 

2 plant that are captured and sequestered.’’; 

3 (7) in subsection (c), by striking ‘‘renewable en4 ergy’’ and inserting ‘‘clean electricity’’ in each place 

5 it occurs; 

6 (8) by redesignating subsection (d) as sub7 section (e); and 

8 (9) by inserting after subsection (c) the fol9 lowing: 

10 ‘‘(d) POWER PURCHASE AGREEMENT.—For the pur11 poses of this section, the Secretary may enter into a power 

12 purchase agreement for as much as all of the electricity 

13 output of a nuclear power plant for the duration of the 

14 operational life of such plant if such plant supplies elec15 tricity for purposes of national security or mission-critical 

16 activities.’’. 

17 (b) AMENDMENTS TO ENERGY POLICIES OF THE DE18 PARTMENT OF DEFENSE AND THE DEPARTMENT OF

19 HOMELAND SECURITY.—Subtitle B of title VI of the En20 ergy Policy Act of 2005 is amended by adding at the end 

21 the following: 

22 ‘‘SEC. 639A. LONG-TERM NUCLEAR POWER PURCHASE 

23 AGREEMENT PILOT PROGRAM. 

24 ‘‘(a) ESTABLISHMENT.—The Secretary shall estab25 lish and carry out a pilot program for long-term power 

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1 purchase agreements for electricity generated by nuclear 

2 power. 

3 ‘‘(b) REQUIREMENTS.—In carrying out the pilot pro4 gram established under subsection (a), the Secretary 

5 shall— 

6 ‘‘(1) consult and coordinate with the heads of 

7 other Federal agencies that may benefit from pur8 chasing nuclear power for a period of longer than 10 

9 years, including— 

10 ‘‘(A) the Secretary of Defense; 

11 ‘‘(B) the Administrator of General Serv12 ices; and 

13 ‘‘(C) the Secretary of Homeland Security; 

14 and 

15 ‘‘(2) not later than 5 years after the date of en16 actment of this section, enter into at least 1 power 

17 purchase agreement with the owner or operator of a 

18 commercial nuclear power plant for up to 30 years. 

19 ‘‘(c) PRIORITY.—In carrying out the pilot program 

20 established under subsection (a), the Secretary shall 

21 prioritize entering into a power purchase agreement with 

22 the owner or operator of a plant that uses first-of-a-kind 

23 or early deployment nuclear technologies that can provide 

24 reliable and resilient power to high-value assets for na25 tional security purposes or other purposes, which the SecVerDate Sep 11 2014 21:31 Feb 13, 2021 Jkt 019200 PO 00000 Frm 00108 Fmt 6652 Sfmt 6201 E:\BILLS\H9054.IH H9054
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1 retary determines are in the national interest, especially 

2 in remote off-grid scenarios or grid-connected scenarios 

3 that can provide capabilities commonly known as 

4 ‘islanding power capabilities’ during an emergency sce5 nario. 

6 ‘‘(d) EFFECT ON RATES.—A power purchase agree7 ment entered into under this section may be at a rate that 

8 is higher than the average market rate if the power pur9 chase agreement fulfills an applicable consideration de10 scribed in subsection (c).’’. 

11 (c) TABLE OF CONTENTS.—The table of contents of 

12 the Energy Policy Act of 2005 (Public Law 109–58; 119 

13 Stat. 594) is amended by inserting after the item relating 

14 to section 639 the following: 

‘‘Sec. 639A. Long-term nuclear power purchase agreement pilot program.’’. 

15 (d) AUTHORIZATION OF LONG-TERM POWER PUR16 CHASE AGREEMENTS.—Section 501(b)(1) of title 40, 

17 United States Code, is amended by striking subparagraph 

18 (B) and inserting the following: 

19 ‘‘(B) PUBLIC UTILITY CONTRACTS.— 

20 ‘‘(i) TERM.— 

21 ‘‘(I) IN GENERAL.—A contract 

22 under this paragraph to purchase 

23 electricity service from a public utility 

24 may be for a period of not more than 

25 40 years. 

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1 ‘‘(II) OTHER PUBLIC UTILITY

2 SERVICES.—A contract under this 

3 paragraph for a public utility service 

4 other than a service described in sub5 clause (I) may be for a period of not 

6 more than 10 years. 

7 ‘‘(ii) COSTS.—The cost of a contract 

8 under this paragraph for any fiscal year 

9 may only be paid from the appropriations 

10 for that fiscal year.’’. 

11 SEC. 304. MODERNIZING THE NUCLEAR REGULATORY COM12 MISSION. 

13 (a) REDUCING THE ADMINISTRATIVE BURDEN OF

14 LICENSING ACTIVITIES FOR NEW DESIGNS OF ADVANCED

15 NUCLEAR REACTORS.— 

16 (1) REPORT.—Not later than 90 days after the 

17 date of enactment of this section, the Commission 

18 shall submit to the Committee on Energy and Com19 merce of the House of Representatives and the Com20 mittee on Energy and Natural Resources of the Sen21 ate a report that recommends how to improve the 

22 processes, procedures, and, if appropriate, regula23 tions of the Commission with respect to licensing, 

24 certification, and approval of advanced nuclear reac25 tor designs. 

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1 (2) REQUIRED RECOMMENDATIONS.—The re2 port submitted under paragraph (1) shall include 

3 recommendations to— 

4 (A) improve all Commission actions with 

5 respect to licensing, certification, and approval 

6 of advanced nuclear reactor designs, including 

7 actions to meet the Commission’s obligations 

8 under the National Environmental Policy Act of 

9 1969 (42 U.S.C. 4231 et seq.); 

10 (B) emphasize risk-informed and perform11 ance-based regulatory approaches; and 

12 (C) enable the Commission to finalize its 

13 review of an application to approve the design 

14 of an advanced nuclear reactor in no more than 

15 two years. 

16 (b) STUDY ON ELIMINATION OF FOREIGN LICENSING

17 RESTRICTIONS.—Not later than 18 months after the date 

18 of enactment of this section, the Comptroller General, in 

19 consultation with the Secretary, shall submit to Congress 

20 a report containing the results of a study on the feasibility 

21 and implications of repealing restrictions under sections 

22 103 d. and 104 d. of the Atomic Energy Act of 1954 (42 

23 U.S.C. 2011 et seq.). 

24 (c) STUDY ON THE IMPACT OF THE ELIMINATION OF

25 MANDATORY HEARINGS FOR UNCONTESTED LICENSING

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1 APPLICATIONS.—Not later than 18 months after the date 

2 of enactment of this section, the Comptroller General, in 

3 consultation with the Secretary, shall submit to Congress 

4 a report containing the results of a study on the estimated 

5 effect of eliminating the requirement to hold a hearing for 

6 uncontested applications for an operating license or con7 struction permit under section 189 of the Atomic Energy 

8 Act of 1954 (42 U.S.C. 2239). 

9 (d) INFORMAL HEARING PROCEDURES.— 

10 (1) PROCEDURES.—Section 189 a. of the Atom11 ic Energy Act of 1954 (42 U.S.C. 2239(a)) is 

12 amended by adding at the end the following: 

13 ‘‘(3) Any hearing under this section shall be con14 ducted using informal adjudicatory procedures in accord15 ance with section 555 of title 5, United States Code, un16 less the Commission determines that formal adjudicatory 

17 procedures under section 554, 556, or 557 of title 5, 

18 United States Code are necessary— 

19 ‘‘(A) to develop a sufficient record; or 

20 ‘‘(B) to achieve fairness.’’. 

21 (2) HEARINGS ON LICENSING OF URANIUM EN22 RICHMENT FACILITIES.—Section 193(b) of the 

23 Atomic Energy Act of 1954 (42 U.S.C. 2243(b)) is 

24 amended— 

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1 (A) in paragraph (1), by striking ‘‘on the 

2 record’’ and all that follows through ‘‘and 63’’ 

3 and inserting ‘‘upon a request for a hearing on 

4 the licensing of construction and operation of a 

5 uranium enrichment facility under sections 53 

6 and 63, the Commission shall conduct a single 

7 adjudicatory hearing’’; and 

8 (B) in paragraph (2), by striking ‘‘Such 

9 hearing’’ and inserting ‘‘If a hearing is held 

10 under paragraph (1), the hearing’’. 

11 (e) APPLICATION REVIEWS FOR NUCLEAR ENERGY

12 PROJECTS.—Section 185 of the Atomic Energy Act of 

13 1954 (42 U.S.C. 2235) is amended by adding at the end 

14 the following: 

15 ‘‘c. APPLICATION REVIEW FOR NUCLEAR ENERGY

16 PROJECTS.— 

17 ‘‘(1) STREAMLINING LICENSE APPLICATION RE18 VIEW.—With respect to an application for a con19 struction permit, operating license, or combined con20 struction permit and operating license for a produc21 tion facility or utilization facility, the Commission 

22 shall— 

23 ‘‘(A) undertake an expedited environmental 

24 review process and issue any draft environ25 mental impact statements (as required under 

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1 the National Environmental Policy Act of 1969 

2 (42 U.S.C. 4321 et seq.)) for the application 

3 not later than 24 months after the date on 

4 which the application is accepted for docketing; 

5 and 

6 ‘‘(B) complete the technical review process 

7 of the application, issue any safety evaluation 

8 reports, and issue any final environmental im9 pact statements (as required under the Na10 tional Environmental Policy Act of 1969 (42 

11 U.S.C. 4321 et seq.) for the application) not 

12 later than 24 months after the date on which 

13 the application is accepted for docketing. 

14 ‘‘(2) USE OF EARLY SITE PERMIT ENVIRON15 MENTAL IMPACT STATEMENT.— 

16 ‘‘(A) SUPPLEMENTAL ENVIRONMENTAL IM17 PACT STATEMENT.—In a proceeding for a com18 bined construction permit and operating license 

19 for a site for which an early site permit has 

20 been issued, any environmental impact state21 ment prepared by the Commission and cooper22 ating agencies (as required under the National 

23 Environmental Policy Act of 1969 (42 U.S.C. 

24 4321 et seq.)) shall be prepared as a suppleVerDate Sep 11 2014 21:31 Feb 13, 2021 Jkt 019200 PO 00000 Frm 00114 Fmt 6652 Sfmt 6201 E:\BILLS\H9054.IH H9054
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1 ment to the environmental impact statement 

2 prepared for the early site permit. 

3 ‘‘(B) INCORPORATION BY REFERENCE.— 

4 The supplemental environmental impact state5 ment prepared under subparagraph (A) shall— 

6 ‘‘(i) incorporate by reference the anal7 ysis, findings, and conclusions from the en8 vironmental impact statement prepared for 

9 the applicable early site permit; and 

10 ‘‘(ii) include additional discussion, 

11 analyses, findings, and conclusions on mat12 ters resolved in the early site permit pro13 ceeding only to the extent necessary to ad14 dress information that— 

15 ‘‘(I) is new; and 

16 ‘‘(II) would materially change the 

17 prior findings or conclusions. 

18 ‘‘(3) PRODUCTION OR UTILIZATION FACILITY

19 LOCATED AT AN EXISTING SITE.—In reviewing an 

20 application for an early site permit, construction 

21 permit, operating license, or combined construction 

22 permit and operating license for a proposed produc23 tion facility or utilization facility that is to be lo24 cated at the site of an already licensed production 

25 facility or utilization facility, the Commission shall, 

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1 to the extent practicable, use information that was 

2 part of the determination to issue a license for the 

3 already licensed production facility or utilization fa4 cility. 

5 ‘‘(4) HEARING ON EARLY SITE PERMIT, CON6 STRUCTION PERMIT, AND COMBINED CONSTRUCTION

7 PERMIT AND OPERATING LICENSE.— 

8 ‘‘(A) IN GENERAL.—The Commission shall 

9 issue and make immediately effective an early 

10 site permit or construction permit for a produc11 tion facility or utilization facility upon the Com12 mission’s finding that the application therefor 

13 satisfies the requirements of this Act, notwith14 standing any outstanding request for a hearing 

15 for such license. 

16 ‘‘(B) APPROPRIATE ACTION.—Following 

17 completion of any required hearing, the Com18 mission shall take any appropriate action with 

19 respect to the early site permit, construction 

20 permit, or combined construction permit and 

21 operating license to the extent necessary to ac22 count for the hearing results. 

23 ‘‘(5) EARLY SITE PERMIT DEFINED.—In this 

24 subsection, the term ‘early site permit’ has the 

25 meaning given such term in section 52.1 of title 10, 

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1 Code of Federal Regulations (as in effect on the 

2 date of enactment of this subsection).’’. 

3 (f) DEFINITIONS.—In this section: 

4 (1) ADVANCED NUCLEAR REACTOR.—The term 

5 ‘‘advanced nuclear reactor’’ means a nuclear fission 

6 or nuclear fusion reactor, including a prototype 

7 plant (as such term is defined in section 50.2 or sec8 tion 52.1 of title 10, Code of Federal Regulations, 

9 as in effect on the date of enactment of this section), 

10 with significant improvements compared to a com11 mercial nuclear reactor that is under construction as 

12 of the date of enactment of this section, including 

13 improvements such as— 

14 (A) additional inherent safety features; 

15 (B) significantly lower levelized cost of 

16 electricity; 

17 (C) lower waste yields; 

18 (D) greater fuel utilization; 

19 (E) enhanced reliability; 

20 (F) increased proliferation resistance; 

21 (G) increased thermal efficiency; 

22 (H) reduced consumption of cooling water; 

23 (I) the ability to integrate into electric ap24 plications and nonelectric applications; 

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1 (J) modular sizes to allow for deployment 

2 that corresponds with the demand for elec3 tricity; or 

4 (K) operational flexibility to respond to 

5 changes in demand for electricity and to com6 plement integration with intermittent renewable 

7 energy. 

8 (2) APPLICANT.—The term ‘‘applicant’’ means 

9 an applicant for a license, certification, permit, or 

10 other form of approval from the Commission for an 

11 advanced nuclear reactor or a research and test re12 actor. 

13 (3) COMMISSION.—The term ‘‘Commission’’ 

14 means the Nuclear Regulatory Commission. 

15 (g) AUTHORIZATION OF APPROPRIATIONS.— 

16 (1) IN GENERAL.—There are authorized to be 

17 appropriated to carry out subsections (a), (b), and 

18 (c) $20,000,000 for each of fiscal years 2021 

19 through 2030, to remain available until expended. 

20 (2) OFF-FEE APPROPRIATION.—Any funds ap21 propriated to carry out this section may not be re22 covered by the Commission through the collection of 

23 user fees from existing licensees. 

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1 SEC. 305. DEMONSTRATION AND EARLY DEPLOYMENT OF 

2 ADVANCED NUCLEAR REACTORS. 

3 (a) IN GENERAL.—Subtitle B of title VI of the En4 ergy Policy Act of 2005 (Public Law 109–58; 119 Stat. 

5 782) is further amended by adding after section 639(A) 

6 (as added by this Act) the following: 

7 ‘‘SEC. 639B. ADVANCED NUCLEAR REACTOR RESEARCH 

8 AND DEVELOPMENT GOALS. 

9 ‘‘(a) IN GENERAL.—The Secretary shall, as soon as 

10 practicable after the date of enactment of this section, en11 able the commercial deployment of domestic, advanced, af12 fordable, and clean nuclear energy by— 

13 ‘‘(1) demonstrating different advanced nuclear 

14 reactor technologies that may be used by the private 

15 sector to produce— 

16 ‘‘(A) emission-free power at a cost of not 

17 more than $70 per mWh; 

18 ‘‘(B) heat for industrial purposes or syn19 thetic fuel production; 

20 ‘‘(C) a supply of remote or off-grid energy; 

21 or 

22 ‘‘(D) a power supply that is a necessary 

23 backup to a mission for which uninterrupted 

24 power is critical; 

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1 ‘‘(2) developing goals for nuclear energy re2 search programs, which are carried out by the Office 

3 of Nuclear Energy of the Department of Energy; 

4 ‘‘(3) identifying research that the private sector 

5 is unable or unwilling to undertake due to the cost 

6 of, or risks associated with, the research; and 

7 ‘‘(4) facilitating the access of the private sec8 tor— 

9 ‘‘(A) to Federal research facilities; and 

10 ‘‘(B) to the results of research funded by 

11 the Federal Government. 

12 ‘‘(b) DEMONSTRATION PROJECTS.— 

13 ‘‘(1) IN GENERAL.—Not later than December 

14 31, 2025, the Secretary shall establish a program to 

15 enter into agreements to carry out no fewer than 5 

16 demonstration projects pursuant to subsection (a)(1) 

17 to demonstrate the suitability of advanced nuclear 

18 reactors for commercial applications. 

19 ‘‘(2) REQUIREMENTS.—In carrying out dem20 onstration projects under paragraph (1), the Sec21 retary shall— 

22 ‘‘(A) ensure the demonstration projects 

23 under paragraph (1) cover a diverse range of 

24 designs, including designs using different pri25 mary coolants; 

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1 ‘‘(B) ensure that— 

2 ‘‘(i) the long-term cost of electricity or 

3 heat for each design involved in a dem4 onstration project carried out under this 

5 subsection is cost-competitive in the appli6 cable market; and 

7 ‘‘(ii) such cost-competitiveness is 

8 verified by an external review; 

9 ‘‘(C) enter into cost-sharing agreements 

10 with partners in accordance with section 988 

11 for the conduct of activities relating to the re12 search, development, and demonstration of pri13 vate-sector advanced nuclear reactor designs 

14 under the program established under paragraph 

15 (1); 

16 ‘‘(D) work with private sector partners to 

17 identify potential sites, including sites owned by 

18 the Department, to carry out demonstration 

19 projects, as appropriate; and 

20 ‘‘(E) align specific activities carried out 

21 under demonstration projects that are carried 

22 out under this subsection, with priorities identi23 fied through direct consultation between— 

24 ‘‘(i) the Secretary; 

25 ‘‘(ii) the National Laboratories; 

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1 ‘‘(iii) traditional end-users (such as an 

2 electric utility); 

3 ‘‘(iv) potential end-users of new tech4 nologies (such as petrochemical compa5 nies); and 

6 ‘‘(v) developers of advanced nuclear 

7 reactor technology. 

8 ‘‘(c) RESEARCH AND DEVELOPMENT GOALS.— 

9 ‘‘(1) IN GENERAL.—The Secretary shall estab10 lish and annually update goals for the research to 

11 support the demonstration of advanced reactors 

12 under subsection (b) and the deployment of subse13 quent advanced reactors. 

14 ‘‘(2) COORDINATION.—In developing and up15 dating the goals, the Secretary shall coordinate with 

16 members of private industry. 

17 ‘‘(3) REQUIREMENTS.—In developing the goals, 

18 the Secretary shall ensure that— 

19 ‘‘(A) research activities are focused on— 

20 ‘‘(i) key areas of nuclear research, de21 velopment, and deployment that range 

22 from basic research on advanced nuclear 

23 reactor generation to full-design develop24 ment, safety evaluation, and licensing; 

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1 ‘‘(ii) resolving materials challenges re2 lating to radiation damage or corrosive 

3 coolants; and 

4 ‘‘(iii) qualification of advanced nuclear 

5 fuel; 

6 ‘‘(B) infrastructure, such as a versatile re7 actor-based fast neutron source, which is re8 quired to be established in section 955(c)(1) of 

9 the Energy Policy Act of 2005 (42 U.S.C. 

10 16275(c)(1)), or a molten salt testing facility to 

11 aid in research, is constructed; and 

12 ‘‘(C) advanced manufacturing and con13 struction techniques and materials are analyzed 

14 to identify strategies to reduce the commer15 cialization cost of advanced nuclear reactors. 

16 ‘‘(d) DEFINITIONS.—In this section: 

17 ‘‘(1) ADVANCED NUCLEAR REACTOR.—The 

18 term ‘advanced nuclear reactor’ means a nuclear fis19 sion or nuclear fusion reactor, including a prototype 

20 plant (as such term is defined in section 50.2 or sec21 tion 52.1 of title 10, Code of Federal Regulations 

22 (as in effect on the date of enactment of this sec23 tion)), with significant improvements compared to a 

24 commercial nuclear reactor that is under construcVerDate Sep 11 2014 21:31 Feb 13, 2021 Jkt 019200 PO 00000 Frm 00123 Fmt 6652 Sfmt 6201 E:\BILLS\H9054.IH H9054
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1 tion as of the date of enactment of this section, in2 cluding improvements such as— 

3 ‘‘(A) additional inherent safety features; 

4 ‘‘(B) significantly lower levelized cost of 

5 electricity; 

6 ‘‘(C) lower waste yields; 

7 ‘‘(D) greater fuel utilization; 

8 ‘‘(E) enhanced reliability; 

9 ‘‘(F) increased proliferation resistance; 

10 ‘‘(G) increased thermal efficiency; 

11 ‘‘(H) reduced consumption of cooling 

12 water; 

13 ‘‘(I) the ability to integrate into electric 

14 applications and nonelectric applications; 

15 ‘‘(J) modular sizes to allow for deployment 

16 that corresponds with the demand for elec17 tricity; or 

18 ‘‘(K) operational flexibility to respond to 

19 changes in demand for electricity and to com20 plement integration with intermittent renewable 

21 energy. 

22 ‘‘(2) DEMONSTRATION PROJECT.—The term 

23 ‘demonstration project’ means a project carried out 

24 under subsection (b) that— 

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1 ‘‘(A) includes operation of an advanced nu2 clear reactor as part of the power generation fa3 cilities of an electric utility system; or 

4 ‘‘(B) demonstrates the suitability of an ad5 vanced nuclear reactor for commercial applica6 tion. 

7 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There 

8 are authorized to be appropriated to the Secretary to carry 

9 out this section $1,000,000,000 for each of fiscal years 

10 2021 through 2030.’’. 

11 (b) TABLE OF CONTENTS AMENDMENT.—The table 

12 of contents of the Energy Policy Act of 2005 (42 U.S.C. 

13 15801 note) is further amended by adding after the item 

14 relating to section 639A (as added by this Act) the fol15 lowing: 

‘‘Sec. 639B. Advanced nuclear reactor research and development goals.’’. 

16 SEC. 306. ADVANCED NUCLEAR FUEL SECURITY PROGRAM. 

17 (a) FINDINGS.—Congress finds that— 

18 (1) the national security nuclear enterprise, 

19 which supports the nuclear weapons stockpile stew20 ardship and reactors functions of the National Nu21 clear Security Administration, requires a domestic 

22 fuel cycle, including uranium mining, uranium proc23 essing, uranium enrichment, and fuel fabrication, ca24 pable of producing low- and high-enriched uranium; 

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1 (2) many domestic advanced nuclear power in2 dustry participants require access to high-assay, low3 enriched uranium fuel for— 

4 (A) initial fuel testing; 

5 (B) operation of demonstration reactors; 

6 and 

7 (C) commercial operation of advanced nu8 clear reactors; 

9 (3) as of the date of enactment of this Act, no 

10 domestic uranium enrichment or fuel fabrication ca11 pability exists for uranium fuel enriched to greater 

12 than 10 weight percent of the uranium-235 isotope; 

13 (4) a healthy commercial nuclear fuel cycle ca14 pable of providing higher levels of enriched uranium 

15 would benefit— 

16 (A) the relevant national security functions 

17 of the National Nuclear Security Administra18 tion; and 

19 (B) the domestic advanced nuclear indus20 try of the United States; and 

21 (5) making limited quantities of high-assay, 

22 low-enriched uranium available from Department 

23 stockpiles of uranium would allow for initial fuel 

24 testing and demonstration of advanced nuclear reac25 tor concepts, accelerating— 

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1 (A) the path to market of those concepts; 

2 and 

3 (B) the development of— 

4 (i) a market for advanced nuclear re5 actors; and 

6 (ii) a resulting growing commercial 

7 nuclear fuel cycle capability. 

8 (b) NUCLEAR ENERGY.— 

9 (1) IN GENERAL.—Subtitle E of title IX of the 

10 Energy Policy Act of 2005 (42 U.S.C. 16271 et 

11 seq.) is amended by adding at the end the following: 

12 ‘‘SEC. 959A. ADVANCED NUCLEAR FUEL SECURITY PRO13 GRAM. 

14 ‘‘(a) HIGH-ASSAY, LOW-ENRICHED URANIUM PRO15 GRAM FOR ADVANCED NUCLEAR REACTORS.— 

16 ‘‘(1) ESTABLISHMENT.—Not later than 1 year 

17 after the date of enactment of this section, the Sec18 retary shall establish a program (in this section 

19 known as the ‘Program’) to make available high20 assay, low-enriched uranium, through contracts for 

21 sale, resale, transfer, or lease, for use in advanced 

22 nuclear reactors. 

23 ‘‘(2) NUCLEAR FUEL OWNERSHIP.—Each con24 tract under paragraph (1) shall include a provision 

25 that— 

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1 ‘‘(A) requires that any high-assay, low-en2 riched uranium sold, resold, transferred, or 

3 leased under such contract shall remain the 

4 property of the Secretary; and 

5 ‘‘(B) the Secretary shall be responsible for 

6 the final disposition of all radioactive waste cre7 ated by the irradiation, processing, or purifi8 cation of any such uranium. 

9 ‘‘(3) QUANTITY.—In carrying out the Program, 

10 the Secretary shall make available— 

11 ‘‘(A) by December 31, 2022, high-assay, 

12 low-enriched uranium containing not less than 

13 2 metric tons of the uranium-235 isotope; and 

14 ‘‘(B) by December 31, 2025, high-assay, 

15 low-enriched uranium containing not less than 

16 10 metric tons of the uranium-235 isotope, 

17 which shall include the quantities of the ura18 nium-235 isotope required to be made available 

19 under subparagraph (A). 

20 ‘‘(4) FACTORS FOR CONSIDERATION.—In car21 rying out the Program, the Secretary shall take into 

22 consideration options for providing high-assay, low23 enriched uranium from the stockpile of uranium 

24 owned by the Department (including the National 

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1 Nuclear Security Administration), including by pro2 viding from among such stockpile— 

3 ‘‘(A) fuel that— 

4 ‘‘(i) directly meets the needs of an 

5 end-user; and 

6 ‘‘(ii) has been previously used or fab7 ricated for another purpose; 

8 ‘‘(B) fuel that can meet the needs of an 

9 end-user after removing radioactive contami10 nants or other contaminants that resulted from 

11 a previous use or fabrication of the fuel for re12 search, development, demonstration, or deploy13 ment activities of the Department (including ac14 tivities of the National Nuclear Security Admin15 istration); and 

16 ‘‘(C) fuel from a high-enriched uranium 

17 stockpile, which can be blended with lower18 assay uranium to become high-assay, low-en19 riched uranium that may be used in an ad20 vanced nuclear reactor. 

21 ‘‘(5) LIMITATION.—The Secretary shall not 

22 barter or otherwise sell, resell, or transfer uranium 

23 in any form in exchange for services relating to the 

24 final disposition of radioactive waste from uranium 

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1 that is the subject of a sale, lease, release, or trans2 fer under this section. 

3 ‘‘(6) SUNSET.—The Program shall terminate 

4 on the earlier of— 

5 ‘‘(A) January 1, 2035; or 

6 ‘‘(B) the date on which uranium enriched 

7 up to, but not equal to, 20 weight percent can 

8 be obtained in the commercial market from do9 mestic suppliers, as determined by the Sec10 retary. 

11 ‘‘(b) REPORT.— 

12 ‘‘(1) IN GENERAL.—Not later than 180 days 

13 after the date of enactment of this section, the Sec14 retary shall submit to the Committee on Energy and 

15 Natural Resources of the Senate and the Committee 

16 on Energy and Commerce of the House of Rep17 resentatives a report that— 

18 ‘‘(A) describes the actions the Secretary 

19 proposes to carry out under the Program; and 

20 ‘‘(B) includes— 

21 ‘‘(i) the estimates under paragraph 

22 (3); and 

23 ‘‘(ii) the evaluations under paragraph 

24 (4). 

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1 ‘‘(2) COORDINATION AND STAKEHOLDER

2 INPUT.—In developing the report required under 

3 paragraph (1), the Secretary shall seek input from— 

4 ‘‘(A) the Nuclear Regulatory Commission; 

5 ‘‘(B) the National Laboratories; 

6 ‘‘(C) institutions of higher education (as 

7 such term is defined in section 101 of the High8 er Education Act of 1965 (20 U.S.C. 1001(a))); 

9 ‘‘(D) a diverse group of entities operating 

10 in the nuclear energy industry; and 

11 ‘‘(E) a diverse group of technology devel12 opers. 

13 ‘‘(3) COST AND SCHEDULE ESTIMATES.—The 

14 report required under paragraph (1) shall include es15 timated costs, budgets, and timeframes for enabling 

16 the use of high-assay, low-enriched uranium. 

17 ‘‘(4) REQUIRED EVALUATIONS.—The report re18 quired under paragraph (1) shall evaluate— 

19 ‘‘(A) the costs of the actions required to 

20 establish and carry out the Program, including 

21 with respect to— 

22 ‘‘(i) proposed preliminary terms for 

23 the sale, resale, transfer, and leasing of 

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1 sponsibilities of the Department and the 

2 purchaser, transfer recipient, or lessee); 

3 and 

4 ‘‘(ii) the potential to coordinate with 

5 purchasers, transfer recipients, and lessees 

6 regarding— 

7 ‘‘(I) fuel fabrication; and 

8 ‘‘(II) fuel transportation; 

9 ‘‘(B) the potential sources of uranium and 

10 fuel forms available to carry out the Program; 

11 ‘‘(C) options to coordinate carrying out the 

12 Program with the operation of the versatile re13 actor-based fast neuron source, which is re14 quired to be established under section 955(c) of 

15 the Energy Policy Act of 2005 (42 U.S.C. 

16 16275(c)); 

17 ‘‘(D) the ability of the domestic uranium 

18 market to provide materials for advanced nu19 clear reactor fuel; and 

20 ‘‘(E) any associated legal, regulatory, and 

21 policy issues that should be addressed to— 

22 ‘‘(i) carry out the Program; and 

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1 cial and noncommercial purposes, including 

2 with respect to the needs of— 

3 ‘‘(I) the Department; 

4 ‘‘(II) the Secretary of Defense; 

5 and 

6 ‘‘(III) the under Secretary of the 

7 National Nuclear Security Adminis8 tration. 

9 ‘‘(c) DEFINITIONS.—In this section: 

10 ‘‘(1) HIGH-ASSAY, LOW-ENRICHED URANIUM.— 

11 The term ‘high-assay, low-enriched uranium’ means 

12 uranium that is enriched with the uranium-235 iso13 tope in an assay weight that is greater than 5 per14 cent, but less than 20 percent. 

15 ‘‘(2) HIGH-ENRICHED URANIUM.—The term 

16 ‘high-enriched uranium’ means uranium that is en17 riched with the uranium-235 isotope in an assay 

18 weight of 20 percent or more.’’. 

19 (2) TABLE OF CONTENTS.—The table of con20 tents of the Energy Policy Act of 2005 (Public Law 

21 109–58; 119 Stat. 594) is amended— 

22 (A) in the item relating to section 957, by 

23 inserting ‘‘Sec.’’ before ‘‘957’’; 

24 (B) in the item relating to section 958, by 

25 inserting ‘‘Sec.’’ before ‘‘958’’; 

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1 (C) in the item relating to section 959, by 

2 inserting ‘‘Sec.’’ before ‘‘959’’; and 

3 (D) by adding after the item relating to 

4 section 959 (as amended by this paragraph) the 

5 following: 

‘‘Sec. 959A. Advanced nuclear fuel security program.’’. 

6 SEC. 307. AUTHORIZATION OF APPROPRIATIONS FOR LOAN 

7 GUARANTEES FOR ADVANCED NUCLEAR FA8 CILITIES. 

9 Section 1704 of the Energy Policy Act of 2005 (42 

10 U.S.C. 16514) is amended by adding at the end the fol11 lowing: 

12 ‘‘(c) ADVANCED NUCLEAR ENERGY FACILITIES.— 

13 The Secretary is authorized to make guarantees and credit 

14 subsidies for advanced nuclear energy facilities under sec15 tion 1703(b)(4) for loans of $10,000,000,000 for each of 

16 fiscal years 2021 through 2030, to remain available until 

17 expended.’’. 

18 SEC. 308. EXPANDING THE PRODUCTION TAX CREDIT FOR 

19 NUCLEAR POWER. 

20 Section 45J of the Internal Revenue Code of 1986 

21 is amended— 

22 (1) in subsection (a)(1), by striking ‘‘1.8 cents’’ 

23 and inserting ‘‘2.7 cents’’; 

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1 (2) in subsection (b)(5)(B)(ii), by striking 

2 ‘‘6,000 megawatts’’ and inserting ‘‘15,000 

3 megawatts’’; and 

4 (3) in subsection (e), by striking paragraph (1) 

5 and redesignating paragraphs (2) and (3) as (1) and 

6 (2), respectively. 

7 SEC. 309. AUTHORIZATIONS OF APPROPRIATIONS FOR IN8 NOVATION IN NUCLEAR POWER. 

9 There are authorized to be appropriated to the Sec10 retary $1,000,000,000 for each of fiscal years 2021 

11 through 2030— 

12 (1) for Gateway for Accelerated Innovation in 

13 Nuclear vouchers; 

14 (2) for advanced nuclear technology develop15 ment funding opportunity announcements; 

16 (3) for advanced small modular reactor research 

17 and development; 

18 (4) for the advanced reactor demonstration pro19 gram; and 

20 (5) up to $60,000,000 for the Nuclear Reactor 

21 Innovation Center. 

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1 TITLE IV—CLEAN ELECTRICITY 

2 STANDARD 

3 SEC. 401. CERTIFICATION OF COST-EFFECTIVE MARKET 

4 PENETRATION OF CLEAN ELECTRICITY 

5 TECHNOLOGIES. 

6 Title VI of the Public Utility Regulatory Policies Act 

7 of 1978 (16 U.S.C. 2601 et seq.) is amended by adding 

8 at the end the following: 

9 ‘‘SEC. 610. FEDERAL DECARBONIZATION AND INNOVATION 

10 ASSESSMENT PROGRAM. 

11 ‘‘(a) IN GENERAL.—Not later than 2 years after the 

12 date of enactment of this section, the Secretary, after con13 sultation with the Administrator of the Environmental 

14 Protection Agency, shall establish a program, to be known 

15 as the ‘Federal Decarbonization and Innovation Assess16 ment Program’, to annually review and monitor progress 

17 towards the achievement of— 

18 ‘‘(1) an 80 percent reduction in annual power 

19 sector carbon dioxide emissions, below the level in 

20 the year of enactment, by 2050; and 

21 ‘‘(2) cost-effective market penetration of ad22 vanced clean power generation technologies, in ac23 cordance with subsection (b). 

24 ‘‘(b) COST-EFFECTIVE MARKET PENETRATION.— 

25 Cost-effective market penetration of advanced clean power 

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1 generation technologies shall be deemed to have occurred 

2 on the date when the Secretary determines that— 

3 ‘‘(1) at least 3 gigawatts of new electricity gen4 erating capacity using any type of eligible technology 

5 has come into commercial operation since enactment 

6 of this section, provided that— 

7 ‘‘(A) less than 50 percent of the capital 

8 costs of such capacity has been subsidized with 

9 Federal funds; and 

10 ‘‘(B) at least 1 gigawatt of the new elec11 tricity generating capacity using eligible tech12 nology is coal-fired electricity generation using 

13 carbon capture utilization and storage tech14 nology; or 

15 ‘‘(2) at least one type of eligible technology has 

16 similar operating characteristics, such as 

17 dispatchability upon demand and duty cycle, as ex18 isting fossil-fueled electricity generation and, based 

19 on data provided by the Energy Information Admin20 istration, has a total cost of electricity generation 

21 that is not more than 10 percent higher than the av22 erage total cost of electricity generation from such 

23 existing fossil-fueled electricity generation that has 

24 been constructed within the 5 years prior to enact25 ment of this section. 

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1 ‘‘(c) CERTIFICATION OF COST-EFFECTIVE MARKET

2 PENETRATION.—Upon making the determination de3 scribed under subsection (b), but no earlier than 5 years 

4 after enactment of this section, the Secretary shall certify 

5 that cost-effective market penetration of advanced clean 

6 power generation technologies has occurred. 

7 ‘‘(d) DEFINITIONS.—In this section: 

8 ‘‘(1) ADVANCED DISPATCHABLE RENEWABLE

9 GENERATION.—The term ‘advanced dispatchable re10 newable generation’ means renewable electricity gen11 eration capacity that the Secretary has determined 

12 can be used upon demand by grid operators, includ13 ing renewable electricity generation facilities that are 

14 supported by long-duration energy storage. 

15 ‘‘(2) ADVANCED NUCLEAR POWER GENERA16 TION.—The term ‘advanced nuclear power genera17 tion’ means electricity generation capacity using an 

18 advanced nuclear reactor, as such term is defined in 

19 section 640 of the Energy Policy Act of 2005. 

20 ‘‘(3) ELIGIBLE TECHNOLOGIES.—The term ‘eli21 gible technologies’ means the following types of tech22 nologies: 

23 ‘‘(A) Advanced nuclear power generation. 

24 ‘‘(B) Advanced dispatchable renewable 

25 generation. 

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1 ‘‘(C) Fossil-fueled electricity generation 

2 equipped with carbon capture technology, from 

3 which at least 90 percent of carbon dioxide out4 put is captured and utilized or stored in a man5 ner that prevents emission to the atmosphere.’’. 

6 SEC. 402. FEDERAL CLEAN ELECTRICITY STANDARD. 

7 Title VI of the Public Utility Regulatory Policies Act 

8 of 1978 (16 U.S.C. 2601 et seq.) is further amended by 

9 adding after section 610 (as added by this Act) the fol10 lowing: 

11 ‘‘SEC. 611. FEDERAL CLEAN ELECTRICITY STANDARD. 

12 ‘‘(a) CLEAN ELECTRICITY REQUIREMENT.— 

13 ‘‘(1) DEFINITION OF RETAIL ELECTRICITY SUP14 PLIER.—In this section, as determined for each cal15 endar year, the term ‘retail electricity supplier’ 

16 means an entity in the United States that sold not 

17 fewer than 20 megawatt-hours of electric energy to 

18 electric consumers for purposes other than resale 

19 during the preceding calendar year. 

20 ‘‘(2) IN GENERAL.—Effective beginning in the 

21 first compliance period of the program, and for each 

22 compliance period thereafter, each retail electricity 

23 supplier shall surrender clean electricity credits cor24 responding to the required percentage, as deterVerDate Sep 11 2014 21:31 Feb 13, 2021 Jkt 019200 PO 00000 Frm 00139 Fmt 6652 Sfmt 6201 E:\BILLS\H9054.IH H9054
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1 mined under paragraph (3), of the electric energy it 

2 sells to electric consumers. 

3 ‘‘(3) DETERMINATION OF REQUIRED PERCENT4 AGE.—The Secretary shall determine, and may ad5 just as needed, the required percentage for each 

6 compliance period, such that the power sector 

7 achieves, by 2050, a reduction in carbon dioxide 

8 emissions of 80 percent from emission levels in the 

9 year of enactment of this section, and that carbon 

10 dioxide emission levels are reduced linearly in each 

11 compliance period through 2050, provided that— 

12 ‘‘(A) in 2026, the Secretary shall make a 

13 projection of the electricity generated in 2030 

14 that could qualify for clean electricity credits 

15 under subsection (d); 

16 ‘‘(B) the required percentage for the first 

17 compliance period shall be the greater of— 

18 ‘‘(i) the percentage of electricity gen19 erated that would qualify for issuance of 

20 clean electricity credits under subsection 

21 (d) in the year of enactment of this sec22 tion; and 

23 ‘‘(ii) the Secretary’s projection for 

24 2030 under subparagraph (A); and 

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1 ‘‘(C) the required percentage shall be uni2 form for each retail electric supplier regulated 

3 under this section for any compliance period. 

4 ‘‘(4) EARLY PROJECTION OF REQUIRED PER5 CENTAGE TO PROMOTE COMPLIANCE PLANNING.— 

6 Not later than two years after the date of enactment 

7 of this section, the Secretary shall make a projection 

8 of the required percentage for the first compliance 

9 period, extrapolating from the prior five years of 

10 electricity generation. 

11 ‘‘(b) COMPLIANCE.—A retail electric supplier shall 

12 meet the requirements of subsection (a) for each compli13 ance period by— 

14 ‘‘(1) submitting to the Secretary a number of 

15 clean electricity credits equal to the product of the 

16 required percentage for the compliance period times 

17 the volume of electric energy the retail electric sup18 plier sold to consumers during the compliance pe19 riod; 

20 ‘‘(2) paying an amount equal to the product of 

21 the alternative compliance payment, in the amount 

22 specified in subsection (h), times the number of 

23 clean electricity credits that would otherwise be due 

24 under paragraph (1) in the compliance period; or 

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1 ‘‘(3) taking a combination of the actions de2 scribed in paragraphs (1) and (2). 

3 ‘‘(c) FEDERAL CLEAN ELECTRICITY CREDIT TRAD4 ING PROGRAM.— 

5 ‘‘(1) ESTABLISHMENT.—Not later than 180 

6 days after the program trigger date, the Secretary 

7 shall establish a Federal clean electricity credit ac8 counting and trading program under which clean 

9 electricity credits may be acquired, sold, transferred, 

10 and held and electric utilities may submit to the Sec11 retary clean electricity credits to comply with the re12 quirements of this section. 

13 ‘‘(2) CLEAN ELECTRICITY CREDITS.—Each 

14 year, the Secretary shall issue to each generator of 

15 electric energy a quantity of clean electricity credits 

16 determined in accordance with subsection (d). 

17 ‘‘(3) ADMINISTRATION.—Each clean electricity 

18 credit issued under this subsection shall be used only 

19 once for the purpose of complying with the require20 ments of this section. 

21 ‘‘(4) DELEGATION OF PROGRAM ADMINISTRA22 TION.—In carrying out this subsection, the Sec23 retary may delegate— 

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1 ‘‘(A) to the Commission, the implementa2 tion of some or all of the program established 

3 under paragraph (1); and 

4 ‘‘(B) to appropriate entities, the tracking 

5 of clean electricity credits. 

6 ‘‘(5) BANKING OF CLEAN ELECTRICITY CRED7 ITS.—Clean electricity credits issued under sub8 section (d) shall be valid for the compliance period 

9 in which the clean electricity credit is issued or in 

10 any subsequent compliance period. 

11 ‘‘(d) ISSUANCE OF CLEAN ELECTRICITY CREDITS.— 

12 ‘‘(1) IN GENERAL.—For each calendar year, 

13 starting with the year of the program effective date, 

14 the Secretary shall issue clean electricity credits to 

15 each electricity generator in the United States that 

16 has sold electricity and has an annual carbon inten17 sity of less than 0.825 metric tons per megawatt18 hour. 

19 ‘‘(2) DETERMINATION OF CREDITS ISSUED.— 

20 The number of clean electricity credits issued under 

21 paragraph (1) shall be equal to the product of— 

22 ‘‘(A) the number of megawatt-hours of 

23 electric energy sold from the electricity gener24 ator; and 

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1 ‘‘(B) 1.0 minus the quotient obtained by 

2 dividing— 

3 ‘‘(i) the annual carbon intensity of the 

4 generator, as determined in accordance 

5 with paragraph (3), expressed in metric 

6 tons per megawatt-hour; by 

7 ‘‘(ii) 0.82. 

8 ‘‘(3) DETERMINATION OF ANNUAL CARBON IN9 TENSITY OF GENERATING FACILITIES.—With re10 spect to paragraph (2)(B)(i), the Secretary shall de11 termine, in consultation with the Administrator of 

12 the Environmental Protection Agency, the annual 

13 carbon intensity of each generator by dividing— 

14 ‘‘(A) the net annual carbon dioxide emis15 sions of the generator; by 

16 ‘‘(B) the annual quantity of electric energy 

17 generated and sold by the generator. 

18 ‘‘(e) DYNAMIC CREDITING.—If the Secretary ap19 proves use of a dynamic crediting methodology or meth20 odologies under section 612(c), the Secretary shall imple21 ment such methodology or methodologies in lieu of the 

22 crediting methodology established under subsection (d)(2) 

23 as a means of issuing clean electricity credits. 

24 ‘‘(f) CIVIL PENALTIES.— 

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

2 retail electric supplier that fails to meet the require3 ments to submit clean electricity credits or make al4 ternative compliance payments as required by sub5 section (b) shall be subject to a civil penalty in an 

6 amount equal to the product obtained of— 

7 ‘‘(A) the number of megawatt-hours of 

8 electric energy sold by the retail electric sup9 plier to electric consumers in violation of sub10 section (b); and 

11 ‘‘(B) 200 percent of the value of the appli12 cable alternative compliance payment as deter13 mined under subsection (h). 

14 ‘‘(2) PROCEDURE FOR ASSESSING PENALTY.— 

15 The Secretary shall assess a civil penalty under this 

16 subsection in accordance with the procedures for as17 sessing a penalty against a person under section 

18 333(d) of the Energy Policy and Conservation Act 

19 (42 U.S.C. 6303(d)). 

20 ‘‘(g) SAVINGS PROVISION.—Nothing in this section 

21 affects the authority of a State, or a political subdivision 

22 of a State, to adopt or enforce any law relating to— 

23 ‘‘(1) clean electricity or renewable energy; 

24 ‘‘(2) carbon dioxide emissions; or 

25 ‘‘(3) the regulation of a retail electric supplier. 

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1 ‘‘(h) ALTERNATIVE COMPLIANCE PAYMENT.— 

2 ‘‘(1) INITIAL AMOUNT.—The alternative compli3 ance payment for the first year of the first compli4 ance period shall be $30 per megawatt hour. 

5 ‘‘(2) ANNUAL ADJUSTMENTS TO ALTERNATIVE

6 COMPLIANCE PAYMENT.—For each year after the 

7 first year of the first compliance period, the Sec8 retary shall increase the amount of the alternative 

9 compliance payment from the amount for the prior 

10 year by 5 percent. The Secretary may make an addi11 tional annual adjustment to account for inflation, as 

12 the Secretary may determine necessary. 

13 ‘‘(i) REGULATIONS.—Not later than 1 year after the 

14 date of enactment of this section, the Secretary shall pro15 mulgate regulations to implement this section. 

16 ‘‘(j) DEFINITIONS.—In this section: 

17 ‘‘(1) COMPLIANCE PERIOD.—The term ‘compli18 ance period’ means the 3-year period starting on the 

19 program effective date and each 3-year period there20 after until 2050. 

21 ‘‘(2) PROGRAM TRIGGER DATE.—The term ‘pro22 gram trigger date’ means January 1 of the first cal23 endar year after the Secretary issues the certifi24 cation under section 610(c). 

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1 ‘‘(3) PROGRAM EFFECTIVE DATE.—The term 

2 ‘program effective date’ means the earlier of— 

3 ‘‘(A) January 1 of the first calendar year 

4 that starts two years after the program trigger 

5 date; or 

6 ‘‘(B) January 1 of the first calendar year 

7 that is more than 10 years after the date of en8 actment of this section. 

9 ‘‘SEC. 612. USE OF DYNAMIC CREDITING TO ISSUE CLEAN 

10 ELECTRICITY CREDITS. 

11 ‘‘(a) IDENTIFICATION OF DYNAMIC CREDITING

12 METHODOLOGIES.—Not later than 2 years after the date 

13 of enactment of this section, the Secretary, in consultation 

14 with the Administrator of the Environmental Protection 

15 Agency, shall identify methodologies for calculating the 

16 carbon dioxide emissions from electricity generating re17 sources that are avoided or displaced by increasing the 

18 generation from generating facilities eligible to receive 

19 clean electricity credits under section 611(d). In carrying 

20 out this subsection, the Secretary shall— 

21 ‘‘(1) identify methodologies that estimate in an 

22 accurate manner the net carbon dioxide emissions 

23 avoided or displaced due to the electricity generated 

24 by each specific generating facility in each genera25 tion dispatch interval; and 

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1 ‘‘(2) identify such a methodology or methodolo2 gies, as appropriate for generation resources located 

3 within the region served by a regional transmission 

4 organization or independent system operator, as de5 fined in section 3 of the Federal Power Act (16 

6 U.S.C. 796), and for generation resources operating 

7 outside such regions. 

8 ‘‘(b) COMMISSION REVIEW OF DYNAMIC CREDITING

9 METHODOLOGIES.— 

10 ‘‘(1) The Secretary shall share the identified 

11 dynamic crediting methodologies with the Commis12 sion. 

13 ‘‘(2) Not later than 120 days after its receipt 

14 of the dynamic crediting methodologies from the 

15 Secretary, the Commission shall hold a technical 

16 conference in partnership with State electric utility 

17 regulators to evaluate the dynamic crediting meth18 odologies, including evaluation of alternatives. 

19 ‘‘(3) Not later than 180 days after the technical 

20 conference held pursuant to paragraph (2), and 

21 after providing an opportunity for public comment, 

22 the Commission shall provide a report to the Sec23 retary on the technical conference and any Commis24 sion recommendations or evaluation concerning dy25 namic crediting methodologies. 

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1 ‘‘(c) DETERMINATION.—No later than 180 days fol2 lowing receipt of the report provided pursuant to sub3 section (b)(3), the Secretary, in consultation with the Ad4 ministrator of the Environmental Protection Agency, shall 

5 approve use of one or more identified dynamic crediting 

6 methodologies to issue clean electricity credits if the Sec7 retary determines that such use would— 

8 ‘‘(1) significantly enhance confidence that a 

9 clean electricity standard would achieve the carbon 

10 dioxide emission reduction targets set forth in sec11 tion 611(a)(2); or 

12 ‘‘(2) significantly reduce the costs of achieving 

13 such targets. 

14 ‘‘(d) USE OF DYNAMIC CREDITING METHODOLO15 GIES.—If the Secretary approves one or more identified 

16 dynamic crediting methodologies under subsection (c), the 

17 Secretary shall implement the approved methodology to 

18 determine the number of clean electricity credits to be 

19 issued to an electricity generator in lieu of the method20 ology provided in 611(d)(2). The Secretary shall apply a 

21 dynamic crediting factor approved under subsection (c) for 

22 the first full calendar year after such approval, or for the 

23 first year of the first compliance period, whichever is later, 

24 except that the Secretary may delay use of approved dy25 namic crediting methodologies by one year if the Secretary 

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1 finds that additional time is needed for the Secretary or 

2 the Commission to take actions necessary for implementa3 tion under subsection (e). 

4 ‘‘(e) IMPLEMENTATION.— 

5 ‘‘(1) The Secretary may, by rule, require that 

6 the regional transmission organizations, independent 

7 system operators, other balancing authorities, and 

8 other appropriate entities provide the Secretary with 

9 the information necessary for the Secretary to apply 

10 any approved dynamic crediting methodology. 

11 ‘‘(2) At the request of the Secretary, or upon 

12 its own initiative, the Commission shall consider 

13 whether changes to tariffs on file under section 205 

14 of the Federal Power Act (16 U.S.C. 824d) are nec15 essary to implement the requirements of any rule 

16 promulgated by the Secretary under paragraph 

17 (1).’’. 

18 SEC. 403. REGIONAL CLEAN ELECTRICITY PLANNING MOD19 ELS. 

20 (a) DEVELOPMENT OF PLANNING MODELS AND

21 DATA.—Not later than 2 years after the date of enact22 ment this Act, the Secretary shall make available one or 

23 more regional electricity planning models and standard24 ized sets of data, including potential renewable energy 

25 hourly production profiles at all potential locations for reVerDate Sep 11 2014 21:31 Feb 13, 2021 Jkt 019200 PO 00000 Frm 00150 Fmt 6652 Sfmt 6201 E:\BILLS\H9054.IH H9054
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1 newable energy deployment, that States can use to develop 

2 plans for portfolios of clean electricity resources that are 

3 capable of achieving the emission reduction trajectory pro4 vided in the clean electricity requirements established 

5 under section 611 of the Public Utility Regulatory Policies 

6 Act of 1978 at least cost and consistent with the need 

7 to maintain reliability. 

8 (b) DEVELOPMENT PROCESS.—In making planning 

9 models and data available under subsection (a), the Sec10 retary shall— 

11 (1) solicit planning models and standardized, 

12 accurate data sets from the national laboratories 

13 and universities; 

14 (2) hold jointly with the Commission a technical 

15 conference on planning models and standardized 

16 data sets, including hourly profiles of renewable en17 ergy production at potential deployment locations, 

18 and consider the input from such conference in 

19 choosing planning models and data sets to make 

20 available; and 

21 (3) update the planning models and data sets 

22 made available from time to time in response to new 

23 information. 

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1 (c) USE OF MODELS BY STATES.—The Secretary 

2 shall encourage States to use the models and data sets 

3 to— 

4 (1) plan collaboratively with other States in the 

5 same North American Electric Reliability Corpora6 tion reliability region or organized electricity market 

7 on least-cost and reliable compliance with the clean 

8 electricity standard established under section 611 of 

9 the Public Utility Regulatory Policies Act of 1978; 

10 and 

11 (2) adopt, and from time to time update, multi12 State clean electricity resource deployment goals 

13 that promote least-cost deployment consistent with 

14 maintaining electric reliability. 

15 SEC. 404. STAND-BY EMISSION PERFORMANCE STANDARDS. 

16 (a) ANNUAL REVIEW OF ELECTRIC POWER SECTOR

17 EMISSIONS.—Not later than February 1 of the first year 

18 after enactment of this section, and each February 1 

19 thereafter, the Secretary, in consultation with the Admin20 istrator of the Environmental Protection Agency, shall 

21 publish a determination of the annual average level of 

22 greenhouse gas emissions from the electric power sector 

23 for the prior three calendar years. 

24 (b) ENFORCEABILITY.—Emission limitations for car25 bon dioxide emissions from fossil fuel-fired power plants 

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1 established under title I of the of the Clean Air Act (42 

2 U.S.C. 7401 et seq.) may be enforced by a State or by 

3 the Administrator of the Environmental Protection Agen4 cy— 

5 (1) before the clean electricity standard pro6 gram trigger date, only if— 

7 (A) the Secretary, not earlier than 5 years 

8 after the date of enactment of this Act, deter9 mines under subsection (a) that the 5-year an10 nual average level of electric power sector 

11 greenhouse gas emissions exceeded the annual 

12 average level of such emissions for the pre13 ceding 5-year period by at least 6 percent; or 

14 (B) the Secretary finds that significantly 

15 less than the full amount of funding authorized 

16 for programs under this Act has been appro17 priated, resulting in substantial limitation to or 

18 delay of the technology advancement program 

19 elements of this Act; or 

20 (2) after the end of a clean electricity standard 

21 compliance period, if the clean electricity require22 ment is not enforced for the compliance period. 

23 (c) CLEAN AIR ACT AUTHORITIES.—Except as pro24 vided in this section, neither a State nor the Administrator 

25 of the Environmental Protection Agency may enforce any 

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1 emission limitation for carbon dioxide emissions from fos2 sil fuel-fired electric power generating units established 

3 under title I of the of the Clean Air Act (42 U.S.C. 7401 

4 et seq.). 

5 (d) DEFINITIONS.—In this section: 

6 (1) COMPLIANCE PERIOD.—The term ‘‘compli7 ance period’’ has the meaning given such term in 

8 section 611(k)(1) of the Public Utility Regulatory 

9 Policies Act of 1978. 

10 (2) PROGRAM TRIGGER DATE.—The term ‘‘pro11 gram trigger date’’ has the meaning given such term 

12 in section 611(k)(2) of the Public Utility Regulatory 

13 Policies Act of 1978. 

Æ