243 
(vii) natural gas liquids; and 
(viii) all conventionally and unconven-
tionally produced hydrocarbons. 
(3) GATHERING
LINE.—The term ‘‘gathering 
line’’ has the meaning given the term in section 
195.2 of title 49, Code of Federal Regulations (as 
in effect on the date of enactment of this Act). 
(4) INTERSTATE PIPELINE.—The term ‘‘inter-
state pipeline’’ has the meaning given the term in 
section 195.2 of title 49, Code of Federal Regula-
tions (as in effect on the date of enactment of this 
Act). 
(b) MORATORIUM.—Subject to subsection (e), begin-
ning on January 1, 2021, there shall be a moratorium on 
Federal permit approval for— 
(1) any new electric generating facility that 
generates fossil fuel energy through the combustion 
of any fossil fuel resource; 
(2) any new gathering line or interstate pipeline 
for the transport of any fossil fuel resource that— 
(A) crosses Federal land or navigable 
water; or 
(B) requires the use of eminent domain on 
private property; 
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244 
(3) any maintenance activity relating to an ex-
isting gathering line or interstate pipeline for the 
transport of a fossil fuel resource that expands the 
carrying capacity of the gathering line or interstate 
pipeline by more than 5 percent; 
(4) any new import or export terminal for fossil 
fuel resources; 
(5) any maintenance activity relating to an ex-
isting import or export terminal for a fossil fuel re-
source that expands the import or export capacity 
for a fossil fuel resource; and 
(6) any new refinery of a fossil fuel resource. 
(c) ENFORCEMENT.—The Administrator may seek an 
injunction on the construction of any facility described in 
subsection (b) that begins on or after January 1, 2021. 
(d) FEDERAL PERMITS.—The Administrator, in co-
ordination with the head of the applicable Federal agency, 
shall deny any application submitted to the head of that 
Federal agency on or after January 1, 2021, for a permit 
for any facility described in subsection (b). 
(e) EXEMPTION.—During the period beginning on 
January 1, 2021, and ending on December 31, 2029, any 
entity seeking to construct a new electric generating facil-
ity that generates fossil fuel energy through the combus-
tion of natural gas may submit to the Administrator an 
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245 
application for a waiver of the moratorium under this sec-
tion, including a demonstration by the entity that— 
(1) the electricity will primarily be used to bal-
ance nonfossil fuel resources; and 
(2) nonfossil fuel resources will not be available 
to maintain reliability while achieving compliance 
with the applicable requirements of section 220 of 
the Clean Air Act (42 U.S.C. 7401 et seq.) (as 
added by section 401(a)). 
(f) TRIBAL CONSULTATION.— 
(1) IN GENERAL.—If an application for routing 
or siting approval, or permit or right-of-way was 
granted, approved, or issued on or after February 8, 
2017, for any facility described in subsection (b) 
without the consultation required under Executive 
Order 13175 (25 U.S.C. 5301 note; relating to trib-
al consultation), or without the informed and ex-
press consent of the applicable Indian tribe, the Ad-
ministrator or appropriate agency head shall order 
an immediate suspension of any preconstruction, 
construction, or any other activity within, on, under, 
or through the approved route or right-of-way or 
permitted area. 
(2) DURATION.—The suspension described in 
paragraph (1) shall remain in full force and effect 
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until conclusion of the appropriate administrative 
proceeding. 
(g) EMINENT DOMAIN.—Any application, permit, or 
right-of-way granted or issued for any facility described 
in subsection (b) that, on or after February 8, 2017, trig-
gers the use of eminent domain shall be null and void. 
SEC. 502. ENDING FOSSIL FUEL SUBSIDIES. 
(a) FOSSIL FUEL.—In this section, the term ‘‘fossil 
fuel’’ means coal, petroleum, natural gas, or any derivative 
of coal, petroleum, or natural gas that is used for fuel. 
(b) ROYALTY RELIEF.— 
(1) OUTER CONTINENTAL SHELF LANDS ACT.— 
Section 8(a)(3) of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1337(a)(3)) is amended— 
(A) by striking subparagraph (B); and 
(B) by redesignating subparagraph (C) as 
subparagraph (B). 
(2) ENERGY POLICY ACT OF 2005.— 
(A) INCENTIVES FOR NATURAL GAS PRO-
DUCTION FROM DEEP WELLS IN THE SHALLOW 
WATERS
OF
THE
GULF
OF
MEXICO.—Section 
344 of the Energy Policy Act of 2005 (42 
U.S.C. 15904) is repealed. 
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247 
(B) DEEP WATER PRODUCTION.—Section 
345 of the Energy Policy Act of 2005 (42 
U.S.C. 15905) is repealed. 
(3) 
FUTURE
PROVISIONS.—Notwithstanding 
any other provision of law (including regulations), 
royalty relief shall not be permitted under a lease 
issued under section 8 of the Outer Continental 
Shelf Lands Act (43 U.S.C. 1337). 
(c) ROYALTIES UNDER MINERAL LEASING ACT.— 
(1) COAL LEASES.—Section 7(a) of the Mineral 
Leasing Act (30 U.S.C. 207(a)) is amended in the 
fourth sentence by striking ‘‘121⁄2 per centum’’ and 
inserting ‘‘183⁄4 percent’’. 
(2) LEASES ON LAND ON WHICH OIL OR NAT-
URAL GAS IS DISCOVERED.—Section 14 of the Min-
eral Leasing Act (30 U.S.C. 223) is amended in the 
fourth sentence by striking ‘‘121⁄2 per centum’’ and 
inserting ‘‘183⁄4 percent’’. 
(3) LEASES ON LAND KNOWN OR BELIEVED TO 
CONTAIN OIL OR NATURAL GAS.—Section 17 of the 
Mineral Leasing Act (30 U.S.C. 226) is amended— 
(A) in subsection (b)— 
(i) in paragraph (1)(A), in the fifth 
sentence, by striking ‘‘12.5 percent’’ and 
inserting ‘‘183⁄4 percent’’; and 
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248 
(ii) in paragraph (2)(A)(ii), by strik-
ing ‘‘121⁄2
per centum’’ and inserting 
‘‘183⁄4 percent’’; 
(B) in subsection (c)(1), in the second sen-
tence, by striking ‘‘12.5 percent’’ and inserting 
‘‘183⁄4 percent’’; 
(C) in subsection (l), by striking ‘‘121⁄2 per 
centum’’ each place it appears and inserting 
‘‘183⁄4 percent’’; and 
(D) in subsection (n)(1)(C), by striking 
‘‘121⁄2 per centum’’ and inserting ‘‘183⁄4 per-
cent’’. 
(d) ELIMINATION OF INTEREST PAYMENTS FOR ROY-
ALTY OVERPAYMENTS.—Section 111 of the Federal Oil 
and Gas Royalty Management Act of 1982 (30 U.S.C. 
1721) is amended by adding at the end the following: 
‘‘(k) PAYMENT OF INTEREST.—Interest shall not be 
paid on any overpayment.’’. 
(e) OFFSHORE FACILITATES AND PIPELINE OPERA-
TORS.—Section 1004(a) of the Oil Pollution Act of 1990 
(33 U.S.C. 2704(a)) is amended— 
(1) in paragraph (3), by striking ‘‘plus 
$75,000,000; and’’ and inserting ‘‘and the liability 
of the responsible party under section 1002;’’; 
(2) in paragraph (4)— 
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249 
(A) by inserting ‘‘(except an onshore pipe-
line transporting diluted bitumen, bituminous 
mixtures, or any oil manufactured from bitu-
men)’’ after ‘‘for any onshore facility’’; and 
(B) by striking the period at the end and 
inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(5) for any onshore facility transporting di-
luted bitumen, bituminous mixtures, or any oil man-
ufactured from bitumen, the liability of the respon-
sible party under section 1002.’’. 
(f) LIMITATION ON INTERNATIONAL FINANCIAL IN-
STITUTION FUNDING OF FOSSIL FUEL PROJECTS.— 
(1) RESCISSION
OF
FUNDS.—Except as pro-
vided in paragraph (3), effective on the date of en-
actment of this Act, there are rescinded all unobli-
gated balances of amounts made available by the 
United States— 
(A) to the International Bank for Recon-
struction and Development and the Inter-
national Development Association (collectively 
known as the ‘‘World Bank’’) or any other 
international financial institution (as defined in 
section 1701(c)(2) of the International Finan-
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250 
cial Institutions Act (22 U.S.C. 262r(c)(2))); 
and 
(B) to carry out any project that supports 
the construction of new fossil-fueled power 
plants. 
(2) LIMITATION ON USE OF FUTURE FUNDS.— 
Except as provided in paragraph (3), and notwith-
standing any other provision of law, any amounts 
made available by the United States to the World 
Bank or any other international financial institution 
on or after the date of enactment of this Act may 
not be used to carry out any project that facilitates 
additional consumption or production of fossil-fuel 
based energy. 
(3) EXCEPTION.—Paragraphs (1) and (2) shall 
not apply to a fossil-fueled power plant project lo-
cated in a least developed country (as that term is 
defined by the United Nations) if— 
(A) no other economically feasible alter-
native exists; and 
(B) the project uses the most efficient 
technology available. 
(g) INCENTIVES FOR INNOVATIVE TECHNOLOGIES.— 
(1) IN GENERAL.—Section 1703 of the Energy 
Policy Act of 2005 (42 U.S.C. 16513) is amended— 
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251 
(A) in subsection (b)— 
(i) by striking paragraph (2); 
(ii) by redesignating paragraphs (3) 
through (9) as paragraphs (2) through (8), 
respectively; and 
(iii) by striking paragraph (10); 
(B) by striking subsection (c); and 
(C) by redesignating subsections (d) and 
(e) as subsections (c) and (d), respectively. 
(2) CONFORMING AMENDMENT.—Section 1704 
of the Energy Policy Act of 2005 (42 U.S.C. 16514) 
is amended— 
(A) by striking the section designation and 
heading and all that follows through ‘‘There 
are’’ in subsection (a) and inserting the fol-
lowing: 
‘‘SEC. 1704. AUTHORIZATION OF APPROPRIATIONS. 
‘‘There are’’; and 
(B) by striking subsection (b). 
(h) RURAL UTILITY SERVICE LOAN GUARANTEES.— 
Notwithstanding any other provision of law, the Secretary 
of Agriculture may not make a loan under title III of the 
Rural Electrification Act of 1936 (7 U.S.C. 931 et seq.) 
to an applicant for the purpose of carrying out any project 
that will use fossil fuel. 
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252 
(i) LIMITATION ON FUNDS TO THE OVERSEAS PRI-
VATE INVESTMENT CORPORATION OR THE EXPORT-IM-
PORT BANK OF THE UNITED STATES FOR FINANCING 
PROJECTS, TRANSACTIONS, OR OTHER ACTIVITIES THAT 
SUPPORT FOSSIL FUEL.— 
(1) RESCISSION
OF
FUNDS.—Except as pro-
vided in paragraph (3), effective on the date of en-
actment of this Act, there are rescinded all unobli-
gated balances of amounts made available to the 
Overseas Private Investment Corporation or the Ex-
port-Import Bank of the United States to carry out 
any project, transaction, or other activity that sup-
ports the production or use of fossil fuels. 
(2) LIMITATION ON USE OF FUTURE FUNDS.— 
Except as provided in paragraph (3), and notwith-
standing any other provision of law, any amounts 
made available to the Overseas Private Investment 
Corporation or the Export-Import Bank of the 
United States on or after the date of enactment of 
this Act may not be used to carry out any project, 
transaction, or other activity that facilitates addi-
tional consumption or production of fossil-fuel based 
energy. 
(3) EXCEPTION.—Paragraphs (1) and (2) shall 
not apply to a fossil-fueled power plant project lo-
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253 
cated in a least developed country (as that term is 
defined by the United Nations) if— 
(A) no other economically feasible alter-
native exists; and 
(B) the project uses the most efficient 
technology available. 
(j) TRANSPORTATION FUNDS FOR GRANTS, LOANS, 
LOAN GUARANTEES, AND OTHER DIRECT ASSISTANCE.— 
Notwithstanding any other provision of law, any amounts 
made available to the Department of Transportation may 
not be used to award any grant, loan, loan guarantee, or 
provide any other direct assistance to any rail or port 
project that transports fossil fuel. 
(k) POWDER RIVER BASIN.— 
(1) DESIGNATION
OF
THE
POWDER
RIVER 
BASIN AS A COAL PRODUCING REGION.—Not later 
than 90 days after the date of enactment of this 
Act, the Director of the Bureau of Land Manage-
ment shall designate the Powder River Basin as a 
coal producing region. 
(2) REPORT.—Not later than 1 year after the 
date of enactment of this Act, the Director of the 
Bureau of Land Management shall submit to Con-
gress a report that includes— 
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254 
(A) a study of the fair market value and 
the amount of royalties paid on coal leases in 
the Powder River Basin compared to other na-
tional and international coal markets; and 
(B) any policy recommendations to capture 
the future market value of the coal leases in the 
Powder River Basin. 
(l) REPORTS.— 
(1) DEFINITION OF FOSSIL FUEL PRODUCTION 
SUBSIDY.—In this subsection, the term ‘‘subsidy for 
fossil fuel production’’ means any direct funding, tax 
treatment or incentive, risk-reduction benefit, financ-
ing assistance or guarantee, royalty relief, or other 
provision that provides a financial benefit to a fossil 
fuel company for the production of fossil fuels. 
(2) REPORT TO CONGRESS.—Not later than 1 
year after the date of enactment of this Act, the 
Secretary of the Treasury, in coordination with the 
Secretary, shall submit to Congress a report detail-
ing each Federal law (including regulations), other 
than those amended by this Act, as in effect on the 
date on which the report is submitted, that includes 
a subsidy for fossil-fuel production. 
(3) REPORT
ON
MODIFIED
RECOVERY
PE-
RIOD.— 
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255 
(A) IN GENERAL.—Not later than 1 year 
after the date of enactment of this Act, the Sec-
retary, in coordination with the Commissioner 
of Internal Revenue, shall submit to Congress a 
report on the applicable recovery period under 
the accelerated cost recovery system provided in 
section 168 of the Internal Revenue Code of 
1986 for each type of property involved in fossil 
fuel production, including pipelines, power gen-
eration property, refineries, and drilling equip-
ment, to determine if any assets are receiving 
a subsidy for fossil fuel production. 
(B) ELIMINATION
OF
SUBSIDY.—In the 
case of any type of property that the Commis-
sioner of Internal Revenue determines is receiv-
ing a subsidy for fossil fuel production under 
such section 168, for property placed in service 
in taxable years beginning after the date of 
such determination, such section 168 shall not 
apply. The preceding sentence shall not apply to 
any property with respect to a taxable year un-
less such determination is published before the 
first day of such taxable year. 
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256 
Subtitle B—Ending Fossil Fuel 
Subsidies 
SEC. 511. TERMINATION OF VARIOUS TAX EXPENDITURES 
RELATING TO FOSSIL FUELS. 
(a) IN GENERAL.—Subchapter C of chapter 80 of the 
Internal Revenue Code of 1986 is amended by adding at 
the end the following new section: 
‘‘SEC. 7875. TERMINATION OF CERTAIN PROVISIONS RELAT-
ING TO FOSSIL-FUEL INCENTIVES. 
‘‘(a) IN GENERAL.—The following provisions shall 
not apply to taxable years beginning after the date of the 
enactment of this section: 
‘‘(1) Section 43 (relating to enhanced oil recov-
ery credit). 
‘‘(2) Section 45I (relating to credit for pro-
ducing oil and natural gas from marginal wells). 
‘‘(3) Section 45K (relating to credit for pro-
ducing fuel from a nonconventional source). 
‘‘(4) 
Section 
193 
(relating 
to 
tertiary 
injectants). 
‘‘(5) Section 199(d)(9) (relating to special rule 
for taxpayers with oil related qualified production 
activities income). 
‘‘(6) Section 461(i)(2) (relating to special rule 
for spudding of oil or natural gas wells). 
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257 
‘‘(7) Section 469(c)(3) (relating to working in-
terests in oil and natural gas property). 
‘‘(8) Section 613A (relating to limitations on 
percentage depletion in case of oil and natural gas 
wells). 
‘‘(9) Section 617 (relating to deduction and re-
capture of certain mining exploration expenditures). 
‘‘(b) PROVISIONS RELATING
TO PROPERTY.—The 
following provisions shall not apply to property placed in 
service after the date of the enactment of this section: 
‘‘(1) Subparagraph (C)(iii) of section 168(e)(3) 
(relating to classification of certain property). 
‘‘(2) Section 169 (relating to amortization of 
pollution control facilities) with respect to any at-
mospheric pollution control facility. 
‘‘(c) PROVISIONS RELATING
TO COSTS
AND EX-
PENSES.—The following provisions shall not apply to costs 
or expenses paid or incurred after the date of the enact-
ment of this section: 
‘‘(1) Section 179B (relating to deduction for 
capital costs incurred in complying with Environ-
mental Protection Agency sulfur regulations). 
‘‘(2) Section 263(c) (relating to intangible drill-
ing and development costs) with respect to costs in 
the case of oil and natural gas wells. 
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258 
‘‘(3) Section 468 (relating to special rules for 
mining and solid waste reclamation and closing 
costs). 
‘‘(d) 5-YEAR CARRYBACK FOR MARGINAL OIL AND 
NATURAL GAS WELL PRODUCTION CREDIT.—Section 
39(a)(3) (relating to 5-year carryback for marginal oil and 
natural gas well production credit) shall not apply to cred-
its determined in taxable years beginning after the date 
of the enactment of the this section. 
‘‘(e) CREDIT
FOR CARBON DIOXIDE SEQUESTRA-
TION.—Section 45Q (relating to credit for carbon dioxide 
sequestration) shall not apply to carbon dioxide captured 
after the date of the enactment of this section. 
‘‘(f) ALLOCATED CREDITS.—No new credits shall be 
certified under section 48A (relating to qualifying ad-
vanced coal project credit) or section 48B (relating to 
qualifying gasification project credit) after the date of the 
enactment of this section. 
‘‘(g) ARBITRAGE BONDS.—Section 148(b)(4) (relat-
ing to safe harbor for prepaid natural gas) shall not apply 
to obligations issued after the date of the enactment of 
this section.’’. 
(b) CONFORMING AMENDMENT.—The table of sec-
tions for subchapter C of chapter 90 is amended by adding 
at the end the following new item: 
‘‘Sec. 7875. Termination of certain provisions.’’. 
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259 
SEC. 512. UNIFORM 7-YEAR AMORTIZATION FOR GEOLOGI-
CAL AND GEOPHYSICAL EXPENDITURES. 
(a) IN GENERAL.—Section 167(h) of the Internal 
Revenue Code of 1986 is amended— 
(1) by striking ‘‘24-month period’’ each place it 
appears in paragraphs (1) and (4) and inserting ‘‘7- 
year period’’, and 
(2) by striking paragraph (5). 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred after 
the date of the enactment of this Act. 
SEC. 513. NATURAL GAS GATHERING LINES TREATED AS 15- 
YEAR PROPERTY. 
(a) IN GENERAL.—Subparagraph (E) of section 
168(e)(3) of the Internal Revenue Code of 1986 is amend-
ed by striking ‘‘and’’ at the end of clause (viii), by striking 
the period at the end of clause (ix) and inserting ‘‘, and’’, 
and by adding at the end the following new clause: 
‘‘(x) any natural gas gathering line 
the original use of which commences with 
the taxpayer after the date of the enact-
ment of this clause.’’. 
(b) ALTERNATIVE SYSTEM.—The table contained in 
section 168(g)(3)(B) of the Internal Revenue Code of 
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260 
1986 is amended by inserting after the item relating to 
subparagraph (E)(ix) the following new item: 
‘‘(E)(x)
....................................................................................................
22’’. 
(c) CONFORMING AMENDMENT.—Clause (iv) of sec-
tion 168(e)(3)(C) of the Internal Revenue Code of 1986 
is amended by inserting ‘‘and on or before the date of the 
enactment of subparagraph (E)(x)’’ after ‘‘April 11, 
2005’’. 
(d) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments made by 
this section shall apply to property placed in service 
on and after the date of the enactment of this Act. 
(2) EXCEPTION.—The amendments made by 
this section shall not apply to any property with re-
spect to which the taxpayer or a related party has 
entered into a binding contract for the construction 
thereof on or before the date of the enactment of 
this Act, or, in the case of self-constructed property, 
has started construction on or before such date. 
SEC. 514. REPEAL OF DOMESTIC MANUFACTURING DEDUC-
TION FOR HARD MINERAL MINING. 
(a) IN GENERAL.—Subparagraph (B) of section 
199(c)(4) of the Internal Revenue Code of 1986 is amend-
ed by striking ‘‘or’’ at the end of clause (ii), by striking 
the period at the end of clause (iii) and inserting ‘‘, or’’, 
and by adding at the end the following new clause: 
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261 
‘‘(iv) the mining of any hard min-
eral.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
SEC. 515. LIMITATION ON DEDUCTION FOR INCOME AT-
TRIBUTABLE TO DOMESTIC PRODUCTION OF 
OIL, NATURAL GAS, OR PRIMARY PRODUCTS 
THEREOF. 
(a) DENIAL OF DEDUCTION.—Paragraph (4) of sec-
tion 199(c) of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new subpara-
graph: 
‘‘(E) SPECIAL
RULE
FOR
OIL, NATURAL 
GAS, AND COAL INCOME.—The term ‘domestic 
production gross receipts’ shall not include 
gross receipts from the production, refining, 
processing, transportation, or distribution of oil, 
natural gas, or coal, or any primary product 
(within the meaning of subsection (d)(9)) there-
of.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
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262 
SEC. 516. TERMINATION OF LAST-IN, FIRST-OUT METHOD 
OF INVENTORY FOR OIL, NATURAL GAS, AND 
COAL COMPANIES. 
(a) IN GENERAL.—Section 472 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new subsection: 
‘‘(h) TERMINATION FOR OIL, NATURAL GAS, AND 
COAL COMPANIES.—Subsection (a) shall not apply to any 
taxpayer that is in the trade or business of the production, 
refining, processing, transportation, or distribution of oil, 
natural gas, or coal for any taxable year beginning after 
the date of enactment of this subsection.’’. 
(b) ADDITIONAL TERMINATION.—Section 473 of the 
Internal Revenue Code of 1986 is amended by adding at 
the end the following new subsection: 
‘‘(h) TERMINATION FOR OIL, NATURAL GAS, AND 
COAL COMPANIES.—This section shall not apply to any 
taxpayer that is in the trade or business of the production, 
refining, processing, transportation, or distribution of oil, 
natural gas, or coal for any taxable year beginning after 
the date of enactment of this subsection.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of enactment of this Act. 
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SEC. 517. REPEAL OF PERCENTAGE DEPLETION FOR COAL 
AND HARD MINERAL FOSSIL FUELS. 
(a) IN GENERAL.—Section 613 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new subsection: 
‘‘(f) TERMINATION WITH RESPECT TO COAL AND 
HARD MINERAL FOSSIL FUELS.—In the case of coal, lig-
nite, and oil shale (other than oil shale described in sub-
section (b)(5)), the allowance for depletion shall be com-
puted without reference to this section for any taxable 
year beginning after the date of the enactment of this sub-
section.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) COAL AND LIGNITE.—Section 613(b)(4) of 
the Internal Revenue Code of 1986 is amended by 
striking ‘‘coal, lignite,’’. 
(2) OIL
SHALE.—Section 613(b)(2) of such 
Code is amended to read as follows: 
‘‘(2) 15 PERCENT.—If, from deposits in the 
United States, gold, silver, copper, and iron ore.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
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SEC. 518. TERMINATION OF CAPITAL GAINS TREATMENT 
FOR ROYALTIES FROM COAL. 
(a) IN GENERAL.—Subsection (c) of section 631 of 
the Internal Revenue Code of 1986 is amended— 
(1) by striking ‘‘coal (including lignite), or iron 
ore’’ and inserting ‘‘iron ore’’, 
(2) by striking ‘‘coal or iron ore’’ each place it 
appears and inserting ‘‘iron ore’’, 
(3) by striking ‘‘iron ore or coal’’ each place it 
appears and inserting ‘‘iron ore’’, and 
(4) by striking ‘‘COAL OR’’ in the heading. 
(b) CONFORMING AMENDMENT.—The heading of sec-
tion 631 of the Internal Revenue Code of 1986 is amended 
by striking ‘‘, COAL,’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to dispositions after the date of 
the enactment of this Act. 
SEC. 519. MODIFICATIONS OF FOREIGN TAX CREDIT RULES 
APPLICABLE TO OIL, NATURAL GAS, AND 
COAL COMPANIES WHICH ARE DUAL CAPAC-
ITY TAXPAYERS. 
(a) IN GENERAL.—Section 901 of the Internal Rev-
enue Code of 1986 is amended by redesignating subsection 
(n) as subsection (o) and by inserting after subsection (m) 
the following new subsection: 
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‘‘(n) SPECIAL RULES RELATING TO OIL, NATURAL 
GAS, AND COAL COMPANIES WHICH ARE DUAL CAPACITY 
TAXPAYERS.— 
‘‘(1) GENERAL
RULE.—Notwithstanding any 
other provision of this chapter, any amount paid or 
accrued to a foreign country or possession of the 
United States for any period by a dual capacity tax-
payer which is in the trade or business of the pro-
duction, refining, processing, transportation, or dis-
tribution of oil, natural gas, or coal shall not be con-
sidered a tax— 
‘‘(A) if, for such period, the foreign coun-
try or possession does not impose a generally 
applicable income tax, or 
‘‘(B) to the extent such amount exceeds 
the amount (determined in accordance with reg-
ulations) which— 
‘‘(i) is paid by such dual capacity tax-
payer pursuant to the generally applicable 
income tax imposed by the country or pos-
session, or 
‘‘(ii) would be paid if the generally ap-
plicable income tax imposed by the country 
or possession were applicable to such dual 
capacity taxpayer. 
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Nothing in this paragraph shall be construed to 
imply the proper treatment of any such amount not 
in excess of the amount determined under subpara-
graph (B). 
‘‘(2) DUAL
CAPACITY
TAXPAYER.—For pur-
poses of this subsection, the term ‘dual capacity tax-
payer’ means, with respect to any foreign country or 
possession of the United States, a person who— 
‘‘(A) is subject to a levy of such country or 
possession, and 
‘‘(B) receives (or will receive) directly or 
indirectly a specific economic benefit (as deter-
mined in accordance with regulations) from 
such country or possession. 
‘‘(3) GENERALLY APPLICABLE INCOME TAX.— 
For purposes of this subsection— 
‘‘(A) IN
GENERAL.—The term ‘generally 
applicable income tax’ means an income tax (or 
a series of income taxes) which is generally im-
posed under the laws of a foreign country or 
possession on income derived from the conduct 
of a trade or business within such country or 
possession. 
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‘‘(B) EXCEPTIONS.—Such term shall not 
include a tax unless it has substantial applica-
tion, by its terms and in practice, to— 
‘‘(i) persons who are not dual capacity 
taxpayers, and 
‘‘(ii) persons who are citizens or resi-
dents of the foreign country or posses-
sion.’’. 
(b) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments made by 
this section shall apply to taxes paid or accrued in 
taxable years beginning after the date of the enact-
ment of this Act. 
(2) 
CONTRARY
TREATY
OBLIGATIONS 
UPHELD.—The amendments made by this section 
shall not apply to the extent contrary to any treaty 
obligation of the United States. 
SEC. 520. INCREASE IN OIL SPILL LIABILITY TRUST FUND 
FINANCING RATE. 
(a) IN GENERAL.—Subparagraph (B) of section 
4611(c)(2) of the Internal Revenue Code of 1986 is 
amended— 
(1) by striking ‘‘and’’ at the end of clause (i), 
(2) in clause (ii)— 
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(A) by inserting ‘‘and before January 1, 
2018,’’ after ‘‘December 31, 2016,’’, and 
(B) by striking the period and inserting ‘‘, 
and’’, and 
(3) by adding at the end the following new 
clause: 
‘‘(iii) in the case of crude oil received 
or petroleum products entered after De-
cember 31, 2017, 10 cents a barrel.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to crude oil received and petroleum 
products entered after the date of the enactment of this 
Act. 
SEC. 521. APPLICATION OF CERTAIN ENVIRONMENTAL 
TAXES TO SYNTHETIC CRUDE OIL. 
(a) IN GENERAL.—Paragraph (1) of section 4612(a) 
of the Internal Revenue Code of 1986 is amended to read 
as follows: 
‘‘(1) CRUDE OIL.— 
‘‘(A) IN GENERAL.—The term ‘crude oil’ 
includes crude oil condensates, natural gasoline, 
and synthetic crude oil. 
‘‘(B) SYNTHETIC
CRUDE
OIL.—For pur-
poses of subparagraph (A), the term ‘synthetic 
crude oil’ means any bitumen and bituminous 
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mixtures, any oil manufactured from bitumen 
and bituminous mixtures, and any liquid fuel 
manufactured from coal.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to oil and petroleum products re-
ceived or entered during calendar quarters beginning more 
than 60 days after the date of the enactment of this Act. 
SEC. 522. DENIAL OF DEDUCTION FOR REMOVAL COSTS 
AND DAMAGES FOR CERTAIN OIL SPILLS. 
(a) IN GENERAL.—Part IX of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 is amended 
by adding at the end the following new section: 
‘‘SEC. 280I. EXPENSES FOR REMOVAL COSTS AND DAMAGES 
RELATING TO CERTAIN OIL SPILL LIABILITY. 
‘‘No deduction shall be allowed under this chapter for 
any amount paid or incurred with respect to any costs or 
damages for which the taxpayer is liable under section 
1002 of the Oil Pollution Act of 1990 (33 U.S.C. 2702).’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for part IX of subchapter B of chapter 1 of such Code 
is amended by adding at the end the following new item: 
‘‘Sec. 280I. Expenses for removal costs and damages relating to certain oil spill 
liability.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to any liability arising 
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in taxable years ending after the date of the enactment 
of this Act. 
SEC. 523. TAX ON CRUDE OIL AND NATURAL GAS PRO-
DUCED FROM THE OUTER CONTINENTAL 
SHELF IN THE GULF OF MEXICO. 
(a) IN GENERAL.—Subtitle E of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new chapter: 
‘‘CHAPTER 56—TAX ON SEVERANCE OF 
CRUDE OIL AND NATURAL GAS FROM 
THE OUTER CONTINENTAL SHELF IN 
THE GULF OF MEXICO 
‘‘Sec. 5901. Imposition of tax. 
‘‘Sec. 5902. Taxable crude oil or natural gas and removal price. 
‘‘Sec. 5903. Special rules and definitions. 
‘‘SEC. 5901. IMPOSITION OF TAX. 
‘‘(a) IN GENERAL.—In addition to any other tax im-
posed under this title, there is hereby imposed a tax equal 
to 13 percent of the removal price of any taxable crude 
oil or natural gas removed from the premises during any 
taxable period. 
‘‘(b) CREDIT FOR FEDERAL ROYALTIES PAID.— 
‘‘(1) IN GENERAL.—There shall be allowed as a 
credit against the tax imposed by subsection (a) with 
respect to the production of any taxable crude oil or 
natural gas an amount equal to the aggregate 
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amount of royalties paid under Federal law with re-
spect to such production. 
‘‘(2) LIMITATION.—The aggregate amount of 
credits allowed under paragraph (1) to any taxpayer 
for any taxable period shall not exceed the amount 
of tax imposed by subsection (a) for such taxable pe-
riod. 
‘‘(c) TAX PAID BY PRODUCER.—The tax imposed by 
this section shall be paid by the producer of the taxable 
crude oil or natural gas. 
‘‘SEC. 5902. TAXABLE CRUDE OIL OR NATURAL GAS AND RE-
MOVAL PRICE. 
‘‘(a) TAXABLE CRUDE OIL OR NATURAL GAS.—For 
purposes of this chapter, the term ‘taxable crude oil or 
natural gas’ means crude oil or natural gas which is pro-
duced from Federal submerged lands on the outer Conti-
nental Shelf in the Gulf of Mexico pursuant to a lease 
entered into with the United States which authorizes the 
production. 
‘‘(b) REMOVAL PRICE.—For purposes of this chap-
ter— 
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this subsection, the term ‘removal price’ 
means— 
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‘‘(A) in the case of taxable crude oil, the 
amount for which a barrel of such crude oil is 
sold, and 
‘‘(B) in the case of taxable natural gas, the 
amount per 1,000 cubic feet for which such 
natural gas is sold. 
‘‘(2) SALES BETWEEN RELATED PERSONS.—In 
the case of a sale between related persons, the re-
moval price shall not be less than the constructive 
sales price for purposes of determining gross income 
from the property under section 613. 
‘‘(3) OIL
OR
NATURAL
GAS
REMOVED
FROM 
PROPERTY BEFORE SALE.—If crude oil or natural 
gas is removed from the property before it is sold, 
the removal price shall be the constructive sales 
price for purposes of determining gross income from 
the property under section 613. 
‘‘(4) REFINING BEGUN ON PROPERTY.—If the 
manufacture or conversion of crude oil into refined 
products begins before such oil is removed from the 
property— 
‘‘(A) such oil shall be treated as removed 
on the day such manufacture or conversion be-
gins, and 
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‘‘(B) the removal price shall be the con-
structive sales price for purposes of determining 
gross income from the property under section 
613. 
‘‘(5) PROPERTY.—The term ‘property’ has the 
meaning given such term by section 614. 
‘‘SEC. 5903. SPECIAL RULES AND DEFINITIONS. 
‘‘(a) ADMINISTRATIVE REQUIREMENTS.— 
‘‘(1) WITHHOLDING AND DEPOSIT OF TAX.— 
The Secretary shall provide for the withholding and 
deposit of the tax imposed under section 5901 on a 
quarterly basis. 
‘‘(2) RECORDS AND INFORMATION.—Each tax-
payer liable for tax under section 5901 shall keep 
such records, make such returns, and furnish such 
information (to the Secretary and to other persons 
having an interest in the taxable crude oil or natural 
gas) with respect to such oil as the Secretary may 
by regulations prescribe. 
‘‘(3) TAXABLE PERIODS; RETURN OF TAX.— 
‘‘(A) TAXABLE PERIOD.—Except as pro-
vided by the Secretary, each calendar year shall 
constitute a taxable period. 
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274 
‘‘(B) RETURNS.—The Secretary shall pro-
vide for the filing, and the time for filing, of the 
return of the tax imposed under section 5901. 
‘‘(b) DEFINITIONS.—For purposes of this chapter— 
‘‘(1) PRODUCER.—The term ‘producer’ means 
the holder of the economic interest with respect to 
the crude oil or natural gas. 
‘‘(2) CRUDE OIL.—The term ‘crude oil’ includes 
crude oil condensates and natural gasoline. 
‘‘(3) PREMISES AND CRUDE OIL PRODUCT.— 
The terms ‘premises’ and ‘crude oil product’ have 
the same meanings as when used for purposes of de-
termining gross income from the property under sec-
tion 613. 
‘‘(c) ADJUSTMENT OF REMOVAL PRICE.—In deter-
mining the removal price of oil or natural gas from a prop-
erty in the case of any transaction, the Secretary may ad-
just the removal price to reflect clearly the fair market 
value of oil or natural gas removed. 
‘‘(d) REGULATIONS.—The Secretary shall prescribe 
such regulations as may be necessary or appropriate to 
carry out the purposes of this chapter.’’. 
(b) DEDUCTIBILITY OF TAX.—The first sentence of 
section 164(a) of the Internal Revenue Code of 1986 is 
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amended by inserting after paragraph (4) the following 
new paragraph: 
‘‘(5) The tax imposed by section 5901(a) (after 
application of section 5901(b)) on the severance of 
crude oil or natural gas from the outer Continental 
Shelf in the Gulf of Mexico.’’. 
(c) CLERICAL AMENDMENT.—The table of chapters 
for subtitle E is amended by adding at the end the fol-
lowing new item: 
‘‘56. Tax on severance of crude oil and natural gas from the outer Con-
tinental Shelf in the Gulf of Mexico .............................
’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to crude oil or natural gas removed 
after December 31, 2017. 
SEC. 524. REPEAL OF CORPORATE INCOME TAX EXEMP-
TION FOR PUBLICLY TRADED PARTNERSHIPS 
WITH QUALIFYING INCOME AND GAINS FROM 
ACTIVITIES RELATING TO FOSSIL FUELS. 
(a) IN GENERAL.—Section 7704(d)(1) of the Inter-
nal Revenue Code of 1986 is amended— 
(1) by striking subparagraph (E), 
(2) by redesignating subparagraphs (F) and 
(G) as subparagraphs (E) and (F), respectively, and 
(3) by striking the flush matter at the end. 
(b) 
CONFORMING
AMENDMENT.—Section 
988(c)(1)(E)(iii)(III) of the Internal Revenue Code of 
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1986 is amended by striking ‘‘or (G)’’ and inserting ‘‘or 
(F)’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
TITLE VI—MAINTAINING 
AMERICAN COMPETITIVENESS 
SEC. 601. PURPOSES; DEFINITIONS. 
(a) PURPOSES.—The purposes of this title are— 
(1) to ensure that the shift to a clean energy 
economy in the United States is not eroded by the 
transition to foreign countries of the manufacturing 
of goods in energy-intensive industrial sectors; 
(2) to ensure the competitiveness of United 
States manufacturing and industry; 
(3) to make trade a tool for the mitigation of 
emissions, rather than the source of a substantial in-
crease, as determined by the National Climate 
Change Council, in greenhouse gas emissions by in-
dustrial entities located in foreign countries caused 
by an increased cost of production in the United 
States resulting from the implementation of this 
Act; 
(4) to provide an incentive for high-emissions 
foreign countries to strengthen the climate regula-
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tions and address the greenhouse gas emissions of 
those countries; and 
(5) to prevent an increase in greenhouse gas 
emissions from foreign countries as a result of direct 
and indirect compliance costs incurred under this 
title. 
(b) DEFINITIONS.—In this title: 
(1) CLIMATE DUTY.—The term ‘‘climate duty’’ 
means a duty assessed by the United States on the 
importation into the customs territory of the United 
States of a covered good. 
(2) COVERED GOOD.—The term ‘‘covered good’’ 
means a good that is entered under a heading or 
subheading of the Harmonized Tariff Schedule of 
the United States that corresponds to the North 
American Industrial Classification System code for 
an eligible industrial sector, as established in the 
concordance between North American Industrial 
Classification System codes and the Harmonized 
Tariff Schedule of the United States prepared by the 
United States Census Bureau. 
(3) ELIGIBLE INDUSTRIAL SECTOR.—The term 
‘‘eligible industrial sector’’ means an industrial sec-
tor in the United States that is subject to a climate 
duty, as determined under section 602(a). 
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(4) ENERGY-INTENSIVE.—The term ‘‘energy-in-
tensive’’, with respect to an industrial sector, means 
that the industrial sector has an energy intensity of 
not less than 5 percent, as calculated based on the 
quotient obtained by dividing, as determined using 
the average of the 3 most recent calendar years for 
which data are available— 
(A) the cost of the electricity and fuel pur-
chased by the industrial sector; by 
(B) the total value of the sales of the in-
dustrial sector. 
(5) INCREMENTAL
COST.—The term ‘‘incre-
mental cost’’ means the increased cost of production 
of a covered good due to compliance with applicable 
energy and climate laws (including regulations) and 
subsidies of— 
(A) the United States; or 
(B) a foreign country. 
(6) INDUSTRIAL SECTOR.— 
(A) IN
GENERAL.—The term ‘‘industrial 
sector’’ means any sector that— 
(i) is in the manufacturing sector (as 
defined in North American Industrial Clas-
sification System codes 31, 32, and 33); or 
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279 
(ii) beneficiates or otherwise processes 
(including through agglomeration) a metal 
ore, including— 
(I) iron or copper ore; 
(II) soda ash; and 
(III) phosphate. 
(B) EXCLUSION.—The term ‘‘industrial 
sector’’ does not include any sector involving 
only the extraction of— 
(i) a metal ore; 
(ii) soda ash; or 
(iii) phosphate. 
(7) TRADE-INTENSIVE.—The term ‘‘trade-in-
tensive’’, with respect to an industrial sector, means 
that not less than 15 percent of domestic consump-
tion from the industrial sector is a result of importa-
tion, as calculated based on the quotient obtained by 
dividing, as determined using the average of the 3 
most recent calendar years for which data are avail-
able— 
(A) the value of the total imports of the in-
dustrial sector; by 
(B) the number equal to the sum of— 
(i) the number equal to the difference 
between— 
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280 
(I) the domestic production of 
the industrial sector; and 
(II) the exports of the industrial 
sector; and 
(ii) the value of the imports of the in-
dustrial sector. 
SEC. 602. LEVELING PLAYING FIELD FOR DOMESTIC MANU-
FACTURERS. 
(a) ELIGIBLE INDUSTRIAL SECTORS.— 
(1) DESIGNATION.—Not later than 1 year after 
the date of enactment of this Act, the Administrator, 
by regulation, shall designate, in accordance with 
paragraph (2) and with the advice of the Council, 
each eligible industrial sector that is subject to a cli-
mate duty under this section. 
(2) DETERMINATION.—An industrial sector 
shall be an eligible industrial sector if the industrial 
sector— 
(A) is— 
(i) energy-intensive; and 
(ii) trade-intensive; or 
(B) has an energy intensity of not less 
than 20 percent, as determined by the Council, 
based on the quotient obtained by dividing, as 
determined using the average of the 3 most re-
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281 
cent calendar years for which data are avail-
able— 
(i) the cost of electricity and fuel pur-
chased by the industrial sector; by 
(ii) the value of the sales of the indus-
trial sector. 
(3) PUBLICATION AND UPDATING OF LIST.— 
Not later than 1 year after the date of enactment 
of this Act, and not less frequently than once every 
3 years thereafter, the Administrator shall publish 
or update, as applicable, in the Federal Register a 
list of eligible industrial sectors designated under 
paragraph (1). 
(b) REGULATIONS.— 
(1) IN GENERAL.—The President, in consulta-
tion with the Administrator, with the concurrence of 
the Council and the Commissioner of U.S. Customs 
and Border Protection, shall promulgate regulations 
that— 
(A) establish— 
(i) a list of countries from which the 
United States imports covered goods; 
(ii) a methodology for calculating— 
(I) the incremental cost of pro-
ducing covered goods in— 
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(aa) the United States; and 
(bb) each foreign country in-
cluded on the list under clause 
(i); and 
(II) 
subject 
to 
subsection 
(c)(3)(A), the amount of the climate 
duty to be imposed on imports of cov-
ered goods from each eligible indus-
trial sector; 
(iii) a list of the climate duties to be 
applied to imports from each eligible indus-
trial sector, as determined in accordance 
with the methodology under clause (ii)(II); 
and 
(iv) procedures to prevent circumven-
tion of the climate duty for a covered good 
that is manufactured or processed in more 
than 1 foreign country; 
(B) subject to subsection (c)(3)(B), require 
the payment of an appropriate climate duty for 
the importation into the customs territory of 
the United States of covered goods; and 
(C) describe the procedures to be applied 
by U.S. Customs and Border Protection relat-
ing to the declaration and entry of covered 
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goods into the customs territory of the United 
States. 
(2) REVISIONS.—Not less frequently than once 
every 3 years, the President, with the advice of the 
Council, shall publish in the Federal Register revised 
incremental cost calculations for the United States 
and foreign countries, to be determined in accord-
ance with paragraph (1)(A)(ii)(I), as necessary to 
account for any modifications during the preceding 
3 calendar years to applicable climate- and energy- 
related laws (including regulations). 
(c) IMPOSITION OF CLIMATE DUTY ON IMPORTED 
COVERED GOODS.— 
(1) IN GENERAL.—The owner or operator of an 
entity that imports a covered good shall pay to the 
Commissioner of U.S. Customs and Border Protec-
tion the climate duty required under subsection (b) 
with respect to the applicable eligible industrial sec-
tor. 
(2) WAIVERS.— 
(A) PETITION.—The owner or operator of 
an entity that imports a covered good may sub-
mit to the President a petition for a waiver of 
the climate duty required for the covered good 
under this subsection. 
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(B) APPROVAL.—The President shall pro-
vide to an owner or operator the waiver re-
quested in a petition submitted under subpara-
graph (A), if the owner or operator dem-
onstrates to the satisfaction of the President 
that the covered good imported by the owner or 
operator has an energy intensity or trade inten-
sity, as calculated in accordance with paragraph 
(5) or (8), respectively, of section 601(b), equal 
to less than the energy intensity or trade inten-
sity calculated for the overall eligible industrial 
sector in which the covered good is classified. 
(3) LIMITATIONS.— 
(A) MAXIMUM AMOUNT.—A climate duty 
imposed on the importation of a covered good 
pursuant to this subsection shall not exceed an 
amount equal to the incremental cost of domes-
tic production of the covered good, as deter-
mined 
in 
accordance 
with 
subsection 
(b)(1)(A)(ii)(I). 
(B) EXEMPTED FOREIGN COUNTRIES.—A 
product that originates from a foreign country 
that meets any of the following criteria shall be 
exempt from a climate duty under this sub-
section: 
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(i) The United Nations has identified 
the country as among the least developed 
of developing countries. 
(ii) The country has been determined 
to be responsible for less than 0.5 percent 
of total global greenhouse gas emissions. 
(iii) The country has been determined 
to be responsible for less than 5 percent of 
United States imports for an eligible in-
dustrial sector. 
(iv) The country is a party to an 
international agreement to which the 
United States is also a party that includes 
a nationally enforceable and economywide 
greenhouse gas emissions reduction com-
mitment for that country, which is at least 
as stringent as the commitment of the 
United States. 
(v) The country is party to a multilat-
eral or bilateral emissions reduction agree-
ment to which the United States is also a 
party relating to an applicable eligible in-
dustrial sector. 
(vi) The country has an annual energy 
intensity, as calculated in accordance with 
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section 601(b)(5), for an eligible industrial 
sector that is not greater than the energy 
intensity for the eligible industrial sector in 
the United States during the most recent 
3-calendar-year period for which data are 
available. 
SEC. 603. MAKING AMERICAN MANUFACTURING ENERGY 
EFFICIENT. 
(a) DEFINITIONS.—In this section: 
(1) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’ means an energy-intensive manufacturer that— 
(A) is a nongovernmental entity; and 
(B) is headquartered in the United States. 
(2) ENERGY-INTENSIVE MANUFACTURER.— 
(A) IN GENERAL.—The term ‘‘energy-in-
tensive manufacturer’’ means a private entity 
operating in an industrial sector that uses an 
onsite fossil fuel heating system in a manufac-
turing process. 
(B) INCLUSIONS.—The term ‘‘energy-in-
tensive manufacturer’’ includes an entity de-
scribed in subparagraph (A) that— 
(i) manufactures steel or cement; 
(ii) is a pulp or paper mill; or 
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(iii) operates in an energy-intensive 
industrial sector. 
(3) FOSSIL FUEL HEATING SYSTEM.—The term 
‘‘fossil fuel heating system’’ means a boiler, furnace, 
hot water heater, or forced air system that uses coal, 
oil, natural gas, propane, or any other fossil fuel, as 
determined by the Secretary. 
(4) PROGRAM.—The term ‘‘Program’’ means 
the energy-efficient manufacturing program estab-
lished under subsection (b)(1). 
(b) ENERGY
EFFICIENT
MANUFACTURING
PRO-
GRAM.— 
(1) ESTABLISHMENT.—The Secretary shall es-
tablish program, to be known as an ‘‘energy-efficient 
manufacturing program’’. 
(2) COMPETITIVE GRANTS.— 
(A) IN
GENERAL.—In carrying out the 
Program, the Secretary shall provide grants, on 
a competitive basis, to eligible entities to imple-
ment energy efficiency improvements at facili-
ties in the United States. 
(B) SELECTION CRITERIA.—Not later than 
120 days after the date of enactment of this 
Act, and not later than 90 days after the date 
on which any subsequent amounts are appro-
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priated to carry out the Program, the Secretary 
shall publish criteria for the selection of eligible 
entities to receive grants under the Program, 
including criteria prioritizing the applications 
submitted under subparagraph (C) based on— 
(i) the non-Federal cost-share, relative 
to the value of the grant; 
(ii) the rapidity of the achievement of 
reductions in emissions due to the replace-
ment of a fossil fuel heating system as de-
scribed in subparagraph (F)(i); 
(iii) the ability to use the energy effi-
ciency improvements funded by the grant 
as a model of deployment of zero-emission 
heating technologies across the United 
States; and 
(iv) such other achievements as the 
Secretary considers to be appropriate. 
(C) APPLICATIONS.— 
(i) IN GENERAL.—To be eligible to re-
ceive a grant under this paragraph, an eli-
gible entity or consortium of eligible enti-
ties shall submit to the Secretary an appli-
cation or joint application, respectively, in 
accordance with clause (ii), by not later 
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than 120 days after the date of publication 
by the Secretary of the selection criteria 
under subparagraph (B). 
(ii) INCLUSIONS.—An application sub-
mitted under this subparagraph shall in-
clude a description of the means by 
which— 
(I) the eligible entity or consor-
tium, as applicable, will— 
(aa) achieve compliance with 
any applicable selection criteria 
under subparagraph (B); and 
(bb) measure and verify pro-
posed energy savings; and 
(II) to the maximum extent prac-
ticable, the energy efficiency improve-
ments proposed to be achieved using 
the grant could be used as a model of 
deployment for other manufacturers 
across the United States. 
(D) SELECTION.—Not later than 120 days 
after the deadline described in subparagraph 
(C)(i), the Secretary shall select eligible entities 
to receive grants under the Program. 
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(E) MAXIMUM AMOUNT.—The amount of a 
grant provided under the Program shall not ex-
ceed $100,000,000. 
(F) USE OF FUNDS.—An eligible entity or 
consortium, as applicable, shall use a grant pro-
vided under the Program— 
(i) to replace a fossil fuel heating sys-
tem with— 
(I) a zero-emission heating sys-
tem; or 
(II) a heating system that is at 
least 50 percent more energy efficient; 
or 
(ii) to make energy efficiency improve-
ments that reduce the total electricity 
usage of each applicable eligible entity by 
not less than 10 percent. 
(3) COST SHARING.— 
(A) IN GENERAL.—The non-Federal share 
of the cost of each activity carried out using a 
grant provided under the Program shall be— 
(i) determined by the Secretary, tak-
ing into consideration the receipt of any 
other Federal funds by the applicable eligi-
ble entity; but 
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(ii) not less than 20 percent. 
(B) 
NO
REPAYMENT
OF
FEDERAL 
SHARE.—The Secretary shall not require repay-
ment of the Federal share of an activity carried 
out using a grant provided under the Program 
as a condition of providing the grant. 
(4) REPORTS.— 
(A) IN GENERAL.—For purposes of ana-
lyzing the Program, the Secretary shall deter-
mine the data required to be submitted to the 
Secretary by eligible entities as a condition of 
receiving grants under the Program. 
(B) PROPRIETARY INFORMATION.—In car-
rying out this paragraph, the Secretary shall 
provide appropriate protections for— 
(i) proprietary information; and 
(ii) intellectual property rights. 
(c) FUNDING.—The Secretary shall use to carry out 
this section not more than $2,000,000,000 for each fiscal 
year from the Climate Fund. 
TITLE VII—MOBILIZING 
AMERICAN RESOURCES 
SEC. 701. NATIONAL CLIMATE CHANGE COUNCIL. 
(a) DEFINITION OF FOSSIL FUEL.—In this section, 
the term ‘‘fossil fuel’’ has the meaning given the term 
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‘‘fossil fuel resource’’ in section 610(a) of the Public Util-
ity Regulatory Policies Act of 1978. 
(b) ESTABLISHMENT.—There is established in the 
Executive Office of the President a council, to be known 
as the ‘‘National Climate Change Council’’, to coordinate 
all activities and programs of the Federal Government re-
lating to the transition from fossil fuels by January 1, 
2050. 
(c) MEMBERSHIP.—The membership of the Council 
shall consist of— 
(1) the Secretary; 
(2) the Secretary of Education; 
(3) the Secretary of Housing and Urban Devel-
opment; 
(4) the Secretary of Labor; 
(5) the Secretary of Transportation; 
(6) the Secretary of the Treasury; 
(7) the Administrator; 
(8) the Chair of the Council on Environmental 
Quality; 
(9) the Director of the National Economic 
Council; and 
(10) the Director of the Office of Science and 
Technology Policy. 
(d) DUTIES.— 
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(1) 2050 PLANS.— 
(A) IN GENERAL.—The Council shall de-
velop plans to ensure that each sector in the 
United States that combusts fossil fuels transi-
tions away from fossil fuel emissions by Janu-
ary 1, 2050, in accordance with this subsection. 
(B) PROPOSED PLANS.—Not later than 1 
year after the date of enactment of this Act, the 
Council shall— 
(i) identify each sector in the United 
States economy that combusts fossil fuels; 
and 
(ii) publish in the Federal Register a 
proposed plan to transition that sector 
away from fossil fuels. 
(C) FINAL PLANS.—Not later than 2 years 
after the date of enactment of this Act, the 
Council shall publish in the Federal Register 
the final plan developed under this paragraph 
for each sector. 
(D) REQUIREMENTS.— 
(i) USE OF EXISTING AUTHORITIES.— 
The Council shall— 
(I) to the maximum extent prac-
ticable, use existing authorities to exe-
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cute each plan developed under this 
paragraph; and 
(II) identify any new statutory 
authority necessary to execute each 
plan. 
(ii) PUBLIC COMMENT.—The Council 
shall provide notice and an opportunity for 
public comment for a period of not less 
than 90 days for each plan developed 
under this paragraph. 
(2) SUBMISSION TO CONGRESS.—Not later than 
60 days after the date of publication of a final plan 
under paragraph (1)(C) with respect to which the 
Council identifies under paragraph (1)(D)(i)(II) a 
new statutory authority necessary to execute the 
plan, the Council shall submit to Congress draft leg-
islative text for that new authority. 
(3) 5-YEAR REVIEWS.—Not less frequently than 
once every 5 years, the Council shall review and up-
date, as necessary, each plan developed under this 
subsection, taking into consideration— 
(A) new market conditions; 
(B) advances in technology; and 
(C) such other factors as the Council de-
termines to be appropriate. 
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(4) 2040 REVIEW.—Not later than January 1, 
2040, the Council shall— 
(A) identify any sector that is not expected 
to achieve compliance with the targets estab-
lished for the sector in an applicable plan under 
this subsection by December 31, 2040; and 
(B) establish a program to reduce emis-
sions from that sector through investment in 
international 
clean 
and 
renewable 
energy 
projects. 
(e) NEW GRANT PROGRAM AUTHORITY.— 
(1) IN GENERAL.—The Council may establish 
such new programs as the Council determines to be 
appropriate to provide grants for not more than 20 
percent of the costs incurred in connection with the 
acquisition of components for, or the development, 
construction, or engineering of, activities and pro-
grams described in a plan developed under sub-
section (d). 
(2) FUNDING.—The Council may use to carry 
out this subsection such amounts in the Climate 
Fund as are not otherwise expended to carry out 
this Act and the amendments made by this Act. 
(f) CARBON FEES.—If, in conducting the 2040 re-
view under subsection (d)(4) for any sector (other than 
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sectors covered under section 101 and title II), the Council 
determines that new authority is necessary to meet a tar-
get established under subsection (d), the Secretary of the 
Treasury may, in consultation with the Council, assess the 
fees necessary to meet the target under subsection (d). 
SEC. 702. CLIMATE FUND; CLIMATE BONDS. 
(a) CLIMATE FUND.— 
(1) ESTABLISHMENT.—There is established in 
the Treasury of the United States a fund, to be 
known as the ‘‘Climate Fund’’. 
(2) RESPONSIBILITY OF SECRETARY.—The Sec-
retary of the Treasury (or a designee) (referred to 
in this section as the ‘‘Secretary’’) shall take such 
actions as the Secretary determines to be necessary 
to assist in implementing the establishment of the 
Climate Fund in accordance with this Act. 
(3) USE OF FUNDS.— 
(A) IN GENERAL.—Any amounts deposited 
in the Climate Fund shall only be used to carry 
out this Act and the amendments made by this 
Act. 
(B) ALLOCATION.—Not later than the date 
that is 14 days before the first day of each ap-
plicable fiscal year, the Council shall make a de-
termination regarding the allocation of funds 
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pursuant to subparagraph (A) for the following 
fiscal year. 
(C) MINIMUM ALLOCATION.—For each fis-
cal year, at least 40 percent of the funds depos-
ited in the Climate Fund shall be used to carry 
out title I, the amendments made by title I, and 
section 704. 
(b) CLIMATE BONDS.— 
(1) INITIAL
CAPITALIZATION.—During the 1- 
year period beginning on the date of enactment of 
this Act, the Secretary shall issue climate bonds in 
an amount not to exceed $150,000,000,000 on the 
credit of the United States, the proceeds of which 
shall be deposited in the Climate Fund. 
(2) FUTURE CAPITALIZATION.—After the expi-
ration of the 1-year period described in paragraph 
(1), the Secretary may issue additional climate 
bonds on the credit of the United States in excess 
of the limitation established under that paragraph, 
in an amount not to exceed $150,000,000,000 for 
each fiscal year. 
(c) INTEREST.—A climate bond shall bear interest at 
the rate the Secretary sets for Treasury bonds. 
(d) PROMOTION.— 
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(1) IN
GENERAL.—The Secretary shall take 
such actions, independently and in conjunction with 
financial institutions offering climate bonds, to pro-
mote the purchase of climate bonds, including cam-
paigns describing the financial and social benefits of 
purchasing climate bonds. 
(2) 
PROMOTIONAL
ACTIVITIES.—The 
pro-
motional activities under paragraph (1) may include 
advertisements, pamphlets, or other promotional ma-
terials— 
(A) in periodicals; 
(B) on billboards and other outdoor 
venues; 
(C) on television; 
(D) on radio; 
(E) on the Internet; 
(F) within financial institutions that offer 
climate bonds; or 
(G) any other venues or outlets the Sec-
retary may identify. 
(3) LIMITATION.—There are authorized to be 
appropriated for the promotional activities under 
this subsection not more than— 
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(A) $10,000,000 for the first fiscal year 
beginning after the date of enactment of this 
Act; and 
(B) $2,000,000 for each fiscal year there-
after. 
(e) FAIR WORKING WAGES AND DAVIS-BACON COM-
PLIANCE.— 
(1) IN GENERAL.—All laborers and mechanics 
employed on projects funded directly by or assisted 
in whole or in part by the Climate Fund under this 
Act 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 of part 
A of subtitle II of title 40, United States Code (com-
monly referred to as the ‘‘Davis-Bacon Act’’). 
(2) AUTHORITY.—With respect to the labor 
standards specified in this subsection, the Secretary 
of Labor shall have the authority and functions set 
forth in Reorganization Plan Numbered 14 of 1950 
(64 Stat. 1267; 5 U.S.C. App.) and section 3145 of 
title 40, United States Code. 
SEC. 703. ACCELERATING 100 PERCENT LOCALLY. 
(a) ESTABLISHMENT OF GRANT PROGRAM.— 
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(1) IN GENERAL.—The Secretary shall establish 
a program under which the Secretary shall provide 
grants, on a competitive basis, to units of tribal and 
local government or consortia of those units to plan 
and implement a transition to 100-percent clean and 
renewable energy. 
(2) GOALS.—The goals of the program under 
this subsection are— 
(A) to facilitate the rapid transition to 
100-percent clean and renewable energy at the 
municipal and regional levels throughout the 
United States by providing— 
(i) planning grants to support nec-
essary activities to transition to 100-per-
cent clean and renewable energy; and 
(ii) implementation grants for commu-
nities that— 
(I) have completed the planning 
process; and 
(II) are ready to begin imple-
menting 100-percent clean and renew-
able energy plans; 
(B) to encourage the adoption of clean and 
renewable energy resources at the local and re-
gional levels, while increasing the access that 
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low-income communities and disadvantaged 
communities have to the many benefits of clean 
energy, most notably— 
(i) improved environmental quality; 
(ii) healthier living conditions; and 
(iii) lower energy costs; 
(C) to increase knowledge and acceptance 
of, and exposure to, clean and renewable energy 
practices for consumers, businesses, and local 
elected officials and planning staff; 
(D) to encourage the innovation and in-
vestment necessary to achieve large-scale de-
ployment of clean and renewable energy; 
(E) to investigate differences in energy use 
among communities and develop best practices 
for transitioning to clean and renewable energy 
in various communities and regions throughout 
the United States; and 
(F) to reduce and displace petroleum use 
and reduce greenhouse gas emissions by accel-
erating the transition to clean and renewable 
energy at the local and regional levels in the 
United States. 
(b) APPLICATIONS.— 
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(1) IN GENERAL.—To be eligible to receive a 
grant under this subsection, a unit of tribal or local 
government, or a consortium of 1 or more such 
units, shall submit to the Secretary an application in 
such manner and containing such information as the 
Secretary determines to be appropriate, by not later 
than 150 days after the date of publication by the 
Secretary of selection criteria under subsection 
(c)(3). 
(2) JOINT SPONSORSHIP.— 
(A) IN
GENERAL.—Subject to subpara-
graph (B), an application submitted under 
paragraph (1) may be jointly sponsored by— 
(i) electric utilities; 
(ii) clean energy equipment manufac-
turers; 
(iii) technology providers; or 
(iv) such other entities as the Sec-
retary determines to be appropriate. 
(B) DISBURSEMENT OF GRANTS.—A grant 
provided under this section shall only be dis-
bursed to a unit of tribal or local government, 
or a consortium of those units, regardless of 
whether the application is jointly sponsored 
under subparagraph (A). 
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(c) SELECTION.— 
(1) IN GENERAL.—Not later than 1 year after 
the date of enactment of this Act, and not later than 
1 year after the date on which any subsequent 
amounts are made available to carry out this section, 
the Secretary shall select the units of tribal or local 
government and consortia of those units to receive 
grants under this section, taking into consideration 
the factors and criteria described in paragraphs (2) 
and (3). 
(2) FACTORS FOR CONSIDERATION.—In select-
ing units of government and consortia to receive 
grants under this subsection, the Secretary— 
(A) shall ensure, to the maximum extent 
practicable, that— 
(i) the combination of selected units is 
diverse with respect to— 
(I) population, population den-
sity, and demographics; 
(II) urban and suburban com-
position; 
(III) typical commuting patterns; 
(IV) climate; 
(V) 
geographical 
distribution; 
and 
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(VI) applicable types of utilities 
(including 
investor-owned, 
publicly 
owned, cooperatively owned, distribu-
tion-only, and vertically integrated 
utilities); and 
(ii) at least 1 unit of government se-
lected serves a population of less than 
500,000; 
(B) in addition to the factors described in 
subparagraph (A), may give preference to appli-
cants proposing a greater non-Federal cost- 
share; 
(C) shall prioritize the provision of grants 
for communities that demonstrate affordable 
modes of transitioning to clean and renewable 
energy for residents of low-income communities 
and disadvantaged communities; and 
(D) shall take into consideration previous 
investments by the Department of Energy and 
other Federal departments and agencies to en-
sure that the maximum domestic benefit from 
Federal investments is realized. 
(3) SELECTION CRITERIA.— 
(A) IN
GENERAL.—Not later than 120 
days after the date of enactment of this Act, 
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and not later than 90 days after the date on 
which any subsequent amounts are made avail-
able to carry out this section, the Secretary 
shall publish criteria for the selection of units 
of tribal and local government to receive grants 
under this section. 
(B) APPLICATION
REQUIREMENTS.—The 
criteria published by the Secretary under sub-
paragraph (A) shall include the following appli-
cation requirements: 
(i) A proposed level of cost sharing, in 
accordance with subsection (f)(2). 
(ii) A description of the relevant 
stakeholders that the applicant will involve, 
including— 
(I) elected and appointed offi-
cials; 
(II) all relevant generators and 
distributors of electricity; 
(III) State utility regulatory au-
thorities; 
(IV) departments of public works 
and affordable housing; 
(V) community groups or individ-
uals that can provide expertise regard-
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ing environmental justice consider-
ations; 
(VI) entities representing low-in-
come communities and disadvantaged 
communities; and 
(VII) third-party providers of re-
newable energy and energy efficiency 
services. 
(iii) A cost proposal describing funds 
that would be used to support and ensure 
the participation of community groups 
from all economic levels in stakeholder 
meetings. 
(iv) A description of the means by 
which the planning process will take into 
consideration the needs of environmental 
justice populations, low-income commu-
nities, and disadvantaged communities. 
(v) For planning grants, a proposed 
schedule for the planning process. 
(vi) For implementation grants— 
(I) a proposed implementation 
schedule; 
(II) a description of— 
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307 
(aa) the role that energy ef-
ficiency improvements will play in 
the implementation process; 
(bb) any technical assistance 
the applicant will seek as part of 
the implementation process; 
(cc) 
updated 
construction 
permitting or inspection proc-
esses (or a plan to update con-
struction permitting or inspection 
processes) to allow for expedited 
installation of renewable energy 
equipment; 
(dd) the means by which 
local 
women-owned, 
minority- 
owned, or veteran-owned busi-
nesses will be involved in the im-
plementation process; and 
(ee) any workforce develop-
ment and professional develop-
ment activities that will be incor-
porated into the implementation 
process; 
(III) a proposed plan for— 
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