Just Transition for Energy Communities Act

To provide payments to States and Tribal governments to support energy transition communities, and for other purposes. 1. Short title This Act may be cited as the Just Transition for Energy Communities Act 2. State and Tribal government energy transition payments (a) Establishment of program The Secretary shall establish a program under which the Secretary shall, subject to the availability of appropriations, annually make payments to eligible States and eligible Tribal governments in accordance with subsection (b). (b) Payments (1) Eligible States Under the program, the Secretary shall annually pay to each eligible State an amount that is determined by the Secretary, in consultation with other relevant Federal agencies, by taking into account— (A) the past levels of fossil fuel (including such fossil fuels as coal, oil, and natural gas) development, production, and electricity generation within the eligible State during the 10-year period ending on the date of enactment of this Act; (B) the Federal mineral revenue received by the eligible State during the 10-year period ending on the date of enactment of this Act; (C) the economic conditions in the eligible State, using measurements of the poverty rate, household income, land value, the unemployment rate, and other economic indicators during the 10-year period ending on the date of enactment of this Act; and (D) the eligible State’s plan submitted under subsection (e). (2) Eligible Tribal governments Under the program, the Secretary shall annually pay to each eligible Tribal government an amount that is determined by the Secretary, in consultation with other relevant Federal agencies, by taking into account— (A) the past levels of fossil fuel (including such fossil fuels as coal, oil, and natural gas) development, production, and electricity generation on the Tribal land of the eligible Tribe during the 10-year period ending on the date of enactment of this Act; (B) the Federal mineral revenue received by the eligible Tribe during the 10-year period ending on the date of enactment of this Act; (C) the economic conditions in the eligible Tribe, using measurements of the poverty rate, household income, land value, the unemployment rate, and other economic indicators during the 10-year period ending on the date of enactment of this Act; and (D) the eligible Tribe’s plan submitted under subsection (e). (c) Use of payments (1) In general Eligible States and eligible Tribal governments that receive payments under the program shall use such payments to carry out economic development or diversification activities, which includes planning such activities. (2) Prohibited use Eligible States and eligible Tribal governments that receive payments under the program may not use such payments— (A) with respect to any new or existing development, production, or utilization of fossil fuels (including such fossil fuels as coal, oil, and natural gas) or associated infrastructure (including pipelines); or (B) for any lobbying activity. (d) Notification The Secretary shall, not later than 30 days before the start of each year in which payments are to be made under the program, notify each eligible State and eligible Tribal government of the amount of the payment they may receive as determined under subsection (b). (e) Planning requirement (1) In general Before receiving a payment under the program, an eligible State or eligible Tribal government, or combination thereof, shall submit to the Secretary a plan that describes how the eligible State or eligible Tribal government will use the payment in accordance with subsection (c). (2) Approval (A) In general The Secretary shall approve a plan submitted under paragraph (1), and any updates submitted under paragraph (3), prior to making the relevant payment under this section. (B) Determination The Secretary shall not approve a plan under subparagraph (A) unless the Secretary determines that the plan will facilitate carrying out economic development or diversification activities in accordance with subsection (c). (3) Updates to plan Each year, an eligible State or eligible Tribal government, or combination thereof, shall submit to the Secretary any updates to the plan submitted under paragraph (1). (f) Reporting requirement (1) In general Subject to paragraph (2), each eligible State and eligible Tribal government that receives a payment under this section shall submit to the Secretary periodic reports, which the Secretary shall make available to the public, providing a detailed accounting of the uses of the payments by such eligible State or eligible Tribal government, and such reports shall include such other information as the Secretary may require for the administration of this section. (2) Exception Any information submitted by an eligible Tribal government under paragraph (1) that is designated by the eligible Tribal government as sensitive or private according to Native American custom, law, culture, or religion— (A) may not be made available to the public; and (B) shall be exempt from disclosure under section 552(b)(3)(B) of title 5, United States Code. (g) Labor requirements Eligible States and eligible Tribal governments that receive payments under this section shall provide to the Secretary written assurances that— (1) all laborers and mechanics employed by contractors or subcontractors in the performance of construction, alteration or repair work carried out, in whole or in part, with assistance made available under this section shall be paid wages at rates not less than those prevailing on projects of a character similar in the locality as determined by the Secretary of Labor in accordance with subchapter IV of chapter 31 (2) all service employees employed by contractors or subcontractors to furnish services carried out, in whole or in part, with assistance made available under this section shall be paid not less than the minimum wage and fringe benefits rates described in section 6703 of title 41, United States Code, and with respect to the labor standards specified in this paragraph, the Secretary of Labor shall have the authority and functions set forth in chapter 67 (3) all contractors and subcontractors performing work on a project assisted in whole or in part by this section, shall have an explicit neutrality policy on any issue involving the organization of employees for purposes of collective bargaining. (h) Recoupment Any eligible State or eligible Tribal government that has failed to submit a report required under subsection (f), or failed to comply with subsection (c) or subsection (g)— (1) shall be prohibited from receiving payments under this section; and (2) shall be required to repay to the Secretary an amount equal to— (A) in the case of a failure to comply with subsection (c), the amount of funds used in violation of such subsection; and (B) in the case of a failure to submit a report required under subsection (f), such amount as the Secretary determines appropriate, but not to exceed 15 percent of the total amount paid to the eligible State or eligible Tribal government under this section. (i) Definitions In this Act: (1) Eligible State The term eligible State (2) Eligible Tribe The term eligible Tribe (A) is individually identified (including parenthetically) in the list published most recently as of the date of enactment of this section pursuant to section 104 of the Federally Recognized Indian Tribe List Act of 1994 ( 25 U.S.C. 5131 (B) received any Federal mineral revenue in any of fiscal years 2016 through 2020. (3) Eligible Tribal government The term eligible Tribal government (4) Federal mineral revenue The term Federal mineral revenue (A) the Outer Continental Shelf Lands Act ( 43 U.S.C. 1331 et seq. (B) the Gulf of Mexico Energy Security Act of 2006 ( 43 U.S.C. 1331 (C) the Mineral Leasing Act ( 30 U.S.C. 181 et seq. (D) the Mineral Leasing Act for Acquired Lands ( 30 U.S.C. 351 et seq. (E) the Naval Petroleum Reserves Production Act of 1976 ( 42 U.S.C. 6501 et seq. (F) the Act entitled An Act to regulate the leasing of certain Indian lands for mining purposes 25 U.S.C. 396a et seq. (5) Program The term program (6) Tribal land The term Tribal land (7) Secretary The term Secretary (j) Authorization of appropriations There are authorized to be appropriated to the Secretary for fiscal year 2022— (1) to make payments under subsection (b)(1), $4,500,000,000, to remain available until fiscal year 2031; and (2) to make payments under subsection (b)(2), $500,000,000, to remain available until fiscal year 2031.

Summary: Just Transition for Energy Communities Act This bill establishes a program to assist eligible states and tribal governments that are economically reliant on fossil fuel development, production, or electricity generation to diversify their economies.