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U.S.C. 7545(o)(1)(H))) in the production of 
electricity, expressed as grams of CO2e per 
KWh. 
‘‘(C) 
ESTABLISHMENT
OF
EMISSIONS 
RATES FOR FACILITIES.— 
‘‘(i) PUBLISHING EMISSIONS RATES.— 
The Secretary shall annually publish a 
table that sets forth the greenhouse gas 
emissions rates for types or categories of 
facilities, which a taxpayer shall use for 
purposes of this section. 
‘‘(ii) 
PROVISIONAL
EMISSIONS 
RATE.—In the case of any facility for 
which an emissions rate has not been es-
tablished by the Secretary, a taxpayer 
which owns such facility may file a petition 
with the Secretary for determination of the 
emissions rate with respect to such facility. 
‘‘(D) CARBON CAPTURE AND SEQUESTRA-
TION EQUIPMENT.—For purposes of this sub-
section, the amount of greenhouse gases emit-
ted into the atmosphere by a facility in the pro-
duction of electricity shall not include any quali-
fied carbon dioxide that is captured by the tax-
payer and—
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‘‘(i) pursuant to any regulations es-
tablished under paragraph (2) of section 
45Q(f), disposed of by the taxpayer in se-
cure geological storage, or 
‘‘(ii) utilized by the taxpayer in a 
manner described in paragraph (5) of such 
section. 
‘‘(c) INFLATION ADJUSTMENT.— 
‘‘(1) IN GENERAL.—In the case of a calendar 
year beginning after 2021, the 0.3 cent amount in 
paragraph (2)(A) of subsection (a) and the 1.5 cent 
amount in paragraph (2)(B) of such subsection shall 
each be adjusted by multiplying such amount by the 
inflation adjustment factor for the calendar year in 
which the sale or use of the electricity occurs. If the 
0.3 cent amount as increased under this paragraph 
is not a multiple of 0.05 cent, such amount shall be 
rounded to the nearest multiple of 0.05 cent. If the 
1.5 cent amount as increased under this paragraph 
is not a multiple of 0.1 cent, such amount shall be 
rounded to the nearest multiple of 0.1 cent. 
‘‘(2) ANNUAL
COMPUTATION.—The Secretary 
shall, not later than April 1 of each calendar year, 
determine and publish in the Federal Register the
1587 
inflation adjustment factor for such calendar year in 
accordance with this subsection. 
‘‘(3) INFLATION
ADJUSTMENT
FACTOR.—The 
term ‘inflation adjustment factor’ means, with re-
spect to a calendar year, a fraction the numerator 
of which is the GDP implicit price deflator for the 
preceding calendar year and the denominator of 
which is the GDP implicit price deflator for the cal-
endar year 1992. The term ‘GDP implicit price 
deflator’ means the most recent revision of the im-
plicit price deflator for the gross domestic product 
as computed and published by the Department of 
Commerce before March 15 of the calendar year. 
‘‘(d) CREDIT PHASE-OUT.— 
‘‘(1) IN GENERAL.—The amount of the clean 
electricity production credit under subsection (a) for 
any qualified facility the construction of which be-
gins during a calendar year described in paragraph 
(2) shall be equal to the product of— 
‘‘(A) the amount of the credit determined 
under subsection (a) without regard to this sub-
section, multiplied by 
‘‘(B) the phase-out percentage under para-
graph (2).
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‘‘(2) PHASE-OUT PERCENTAGE.—The phase-out 
percentage under this paragraph is equal to— 
‘‘(A) for a facility the construction of 
which begins during the first calendar year fol-
lowing the applicable year, 100 percent, 
‘‘(B) for a facility the construction of 
which begins during the second calendar year 
following the applicable year, 75 percent, 
‘‘(C) for a facility the construction of 
which begins during the third calendar year fol-
lowing the applicable year, 50 percent, and 
‘‘(D) for a facility the construction of 
which begins during any calendar year subse-
quent to the calendar year described in sub-
paragraph (C), 0 percent. 
‘‘(3) APPLICABLE YEAR.—For purposes of this 
subsection, the term ‘applicable year’ means the 
later of— 
‘‘(A) the calendar year in which the Sec-
retary determines that the annual greenhouse 
gas emissions from the production of electricity 
in the United States are equal to or less than 
25 percent of the annual greenhouse gas emis-
sions from the production of electricity in the 
United States for calendar year 2021, or
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‘‘(B) 2031. 
‘‘(e) DEFINITIONS.—For purposes of this section: 
‘‘(1) CO2e PER KWh.—The term ‘CO2e per 
KWh’ means, with respect to any greenhouse gas, 
the equivalent carbon dioxide (as determined based 
on global warming potential) per kilowatt hour of 
electricity produced. 
‘‘(2) GREENHOUSE GAS.—The term ‘greenhouse 
gas’ has the same meaning given such term under 
section 211(o)(1)(G) of the Clean Air Act (42 
U.S.C. 7545(o)(1)(G)), as in effect on the date of 
the enactment of this section. 
‘‘(3) QUALIFIED CARBON DIOXIDE.—The term 
‘qualified carbon dioxide’ means carbon dioxide cap-
tured from an industrial source which— 
‘‘(A) would otherwise be released into the 
atmosphere as industrial emission of green-
house gas, 
‘‘(B) is measured at the source of capture 
and verified at the point of disposal or utiliza-
tion, and 
‘‘(C) is captured and disposed or utilized 
within the United States (within the meaning of 
section 638(1)) or a possession of the United 
States (within the meaning of section 638(2)).