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 Over-
sight 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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; PURPOSES. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Clean Energy Future Through Innovation Act of 2020’’. 
(b) PURPOSES.—The purposes of this Act are— 
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(1) to further develop, demonstrate, and deploy 
a broad range of advanced low- and zero-carbon 
power technologies, including technologies related to 
the generation, storage, transmission, security, resil-
ience, and efficient use of electric power; and 
(2) to build a competitive market for advanced 
low- and zero-carbon technologies and a robust 
workforce, supply chain, and related legal, commer-
cial, and physical infrastructure. 
SEC. 2. DEFINITIONS; TABLE OF CONTENTS. 
(a) DEFINITIONS.—Except as otherwise provided, in 
this Act: 
(1) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Energy. 
(2) DEPARTMENT.—The term ‘‘Department’’ 
means the Department of Energy. 
(b) TABLE OF CONTENTS.—The table of contents for 
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 se-
questration 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 build-
ings. 
Sec. 208. Extension of publicly traded partnership ownership structure to re-
newable 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 nu-
clear 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. 
TITLE I—CARBON CAPTURE, 
UTILIZATION, AND STORAGE 
Subtitle 
A—Research, 
Develop-
ment, and Demonstration for 
Carbon 
Capture, 
Utilization, 
and Storage Technologies 
SEC. 111. FOSSIL ENERGY OBJECTIVES. 
Section 961 of the Energy Policy Act of 2005 (42 
U.S.C. 16291) is amended— 
(1) in subsection (a), by adding at the end the 
following: 
‘‘(8) Improving the conversion, use, and storage 
of carbon dioxide produced from fossil fuels. 
‘‘(9) Lowering greenhouse gas emissions for all 
fossil fuel production, generation, delivery, and utili-
zation in electricity generation and other industry, to 
the maximum extent possible. 
‘‘(10) Preventing, predicting, monitoring, and 
mitigating the unintended leaking of carbon dioxide 
or other fossil fuel-related emissions into the atmos-
phere. 
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‘‘(11) 
Developing 
carbon 
utilization 
tech-
nologies, products, and methods, including carbon 
use and reuse for commercial application. 
‘‘(12) Developing carbon capture technologies, 
including direct air capture technologies.’’; 
(2) in subsection (b), by striking paragraphs 
(1) through (3) and inserting the following: 
‘‘(1) $2,200,000,000 for fiscal year 2021; 
‘‘(2) $2,200,000,000 for fiscal year 2022; 
‘‘(3) $2,200,000,000 for fiscal year 2023; 
‘‘(4) $2,200,000,000 for fiscal year 2024; and 
‘‘(5) $2,200,000,000 for fiscal year 2025.’’; and 
(3) by striking subsections (c) through (e) and 
inserting the following: 
‘‘(c) LIMITATION.—None of the funds authorized 
under this section may be used for Fossil Energy Environ-
mental Restoration or Import/Export Authorization.’’. 
SEC. 112. CARBON CAPTURE TECHNOLOGIES. 
(a) CARBON CAPTURE PROGRAM.—Section 962 of 
the Energy Policy Act of 2005 (42 U.S.C. 16292) is 
amended to read as follows: 
‘‘SEC. 962. CARBON CAPTURE TECHNOLOGIES. 
‘‘(a) IN GENERAL.—The Secretary shall conduct a 
program of research, development, demonstration, and 
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commercial application of carbon capture technologies. 
The program shall advance the development and use of— 
‘‘(1) carbon capture technologies in conjunction 
with coal and natural gas utilization in power sys-
tems and industry; 
‘‘(2) innovations to improve the efficiency of, 
and decrease emissions at, existing power plants; 
‘‘(3) advanced separation technologies and di-
rect air capture technologies; and 
‘‘(4) carbon capture technologies used in con-
junction with the production from fossil fuel of hy-
drogen or ammonia to be used in power systems. 
‘‘(b) COAL APPLICATIONS.—In conducting the pro-
gram under subsection (a), the Secretary shall devote sub-
stantial resources to carbon capture technologies for coal 
applications. 
‘‘(c) LARGE-SCALE PILOTS.— 
‘‘(1) IN
GENERAL.—In supporting technology 
development activities under this section, the Sec-
retary is encouraged to support large-scale pilot 
projects that test carbon capture technologies on 
power systems. Support for such large-scale pilot 
projects shall be subject to the cost sharing require-
ments in section 988(b). 
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‘‘(2) DEFINITION.—For purposes of this sec-
tion, the term ‘large-scale pilot project’ means a 
pilot project that— 
‘‘(A) represents the scale of technology de-
velopment beyond laboratory development and 
bench scale testing, but not yet advanced to the 
point of being tested under operational condi-
tions at commercial scale; 
‘‘(B) represents the scale of technology 
necessary to gain the operational data needed 
to understand the technical and performance 
risks of the technology before the application of 
that technology at commercial scale or in com-
mercial-scale demonstration; and 
‘‘(C) is large enough— 
‘‘(i) to validate scaling factors; and 
‘‘(ii) to demonstrate the interaction 
between major components so that control 
philosophies for a new process can be de-
veloped and enable the technology to ad-
vance from large-scale pilot plant applica-
tion to commercial-scale demonstration or 
application. 
‘‘(d) COST AND PERFORMANCE GOALS.—In carrying 
out the development, demonstration, and commercial ap-
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plication activities under subsection (a), the Secretary 
shall consider cost and performance goals, in order to ad-
vance development and deployment of carbon capture 
technologies that can become cost competitive in commer-
cial applications. 
‘‘(e) CARBON CAPTURE PILOT TEST CENTERS.— 
‘‘(1) IN GENERAL.—Not later than 1 year after 
the date of the enactment of the Clean Energy Fu-
ture Through Innovation Act of 2020, the Secretary 
shall award grants to one or more entities for the 
operation of Carbon Capture Test Centers (in this 
subsection referred to as the ‘Centers’) to provide 
unique testing capabilities for innovative power sys-
tem technologies to capture carbon dioxide or other-
wise produce a carbon dioxide stream suitable for 
utilization or storage. 
‘‘(2) PURPOSE.—The Centers shall— 
‘‘(A) advance research, development, dem-
onstration, and commercial application of car-
bon capture technologies for power systems; 
and 
‘‘(B) test technologies that represent the 
scale of technology development beyond labora-
tory testing, but not yet advanced to testing 
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under operational conditions at commercial 
scale. 
‘‘(3) APPLICATION.—An entity seeking to oper-
ate a Center under this subsection shall submit to 
the Secretary an application at such time and in 
such manner as the Secretary may require. 
‘‘(4) CRITERIA.—In evaluating applications to 
operate the Centers under this subsection, the Sec-
retary shall prioritize grants to applicants that meet 
one or more of the following criteria: 
‘‘(A) The applicant has access to existing 
or planned research facilities with modular 
technology capabilities. 
‘‘(B) The applicant is an institution of 
higher education with established expertise in 
engineering and design for carbon capture tech-
nologies, or has a partnership with such an in-
stitution. 
‘‘(C) The applicant has access to existing 
research and test facilities for precombustion, 
postcombustion, or oxy-combustion technologies. 
‘‘(D) The applicant has capability to test 
integration of carbon capture technologies with 
utility-scale power plants. 
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‘‘(E) Commercial market participants, in-
cluding equipment and technology suppliers and 
power generators, are involved in the proposed 
Center. 
‘‘(5) CONSIDERATIONS.—In awarding grants 
for the operation of the Centers under this sub-
section, the Secretary shall ensure that— 
‘‘(A) the Centers support pilot testing ap-
propriate to diverse regions and resource char-
acteristics; and 
‘‘(B) each Center receiving such a grant 
demonstrates 
unique 
research 
capabilities, 
unique regional benefits, or new technology de-
velopment opportunities. 
‘‘(6) SCHEDULE.—Each grant to operate a 
Center under this subsection shall be awarded for a 
term of not more than 5 years, subject to the avail-
ability of appropriations. The Secretary may renew 
such 5-year term without limit, subject to a rigorous 
merit review. 
‘‘(7) COST SHARING.—The Secretary shall re-
quire cost sharing under this subsection in accord-
ance with section 988(b). 
‘‘(8) TERMINATION.—The Secretary may elimi-
nate a Center during any 5-year term described in 
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paragraph (6) if such Center is found to be under-
performing. 
‘‘(f) DEMONSTRATION PROJECTS.— 
‘‘(1) IN GENERAL.—The Secretary may fund 
commercial-scale demonstration projects for power 
systems that test the scale of technology necessary 
for commercial operation, in accordance with this 
subsection. 
‘‘(2) ENGINEERING
AND
DESIGN
STUDIES.— 
The Secretary is authorized to fund engineering and 
design studies for commercial-scale demonstration 
projects for power systems in addition to, or in ad-
vance of, issuing an award for a demonstration 
project under this subsection. 
‘‘(3) APPLICATION.—An entity seeking an 
award to conduct a demonstration project under this 
subsection shall submit to the Secretary an applica-
tion at such time and in such manner as the Sec-
retary may require. 
‘‘(4) LIMITATIONS.—The Secretary may only 
provide an award under this subsection after review-
ing each application regarding— 
‘‘(A) the financial strength of the appli-
cant; 
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‘‘(B) the construction schedule for the pro-
posed demonstration project; 
‘‘(C) the market risk faced by the tech-
nology to be demonstrated; and 
‘‘(D) the experience of the applicant and 
construction contractor with similar projects. 
‘‘(5) REQUIREMENTS.—A demonstration project 
funded under this subsection shall— 
‘‘(A) utilize technologies that have com-
pleted pilot-scale testing or the equivalent, as 
determined by the Secretary; 
‘‘(B) secure and maintain agreements for 
the utilization or sequestration of captured car-
bon dioxide; and 
‘‘(C) upon completion, demonstrate carbon 
capture technologies on a power system. 
‘‘(6) COST SHARING.—The Secretary shall re-
quire cost sharing under this subsection in accord-
ance with section 988. 
‘‘(g) DEFINITION OF POWER SYSTEM.—In this sec-
tion, the term ‘power system’ means any electricity gener-
ating unit that utilizes fossil fuels to generate electricity 
provided to the electric grid or directly to a consumer. 
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‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—For ac-
tivities under this section, there are authorized to be ap-
propriated to the Secretary— 
‘‘(1) $600,000,000 for fiscal year 2021; 
‘‘(2) $600,000,000 for fiscal year 2022; 
‘‘(3) $600,000,000 for fiscal year 2023; 
‘‘(4) $600,000,000 for fiscal year 2024; and 
‘‘(5) $600,000,000 for fiscal year 2025.’’. 
(b) GAO STUDY.— 
(1) IN GENERAL.—The Comptroller General of 
the United States shall conduct a study of the De-
partment’s successes, failures, practices, and im-
provements in carrying out demonstration projects 
for carbon capture technologies for power systems. 
In conducting the study, the Comptroller General 
shall consider, at a minimum— 
(A) applicant and contractor qualifications; 
(B) project management practices at the 
Department; 
(C) economic or market changes and other 
factors impacting project viability; 
(D) completion of third-party agreements, 
including power purchase agreements and car-
bon dioxide offtake agreements; 
(E) regulatory challenges; and 
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(F) construction challenges. 
(2) REPORT.—Not later than 3 years after the 
date of enactment of this Act, the Comptroller Gen-
eral of the United States shall submit to Congress 
a report on the results of the study required under 
paragraph (1). 
(3) CONSIDERATION.—The Secretary shall con-
sider any relevant recommendations, as determined 
by the Secretary, provided in the study required 
under paragraph (1), and shall adopt such rec-
ommendations as the Secretary considers appro-
priate. 
(4) POWER SYSTEM DEFINED.—In this section, 
the term ‘‘power system’’ means any electricity gen-
erating unit that utilizes fossil fuels to generate elec-
tricity provided to the electric grid or directly to a 
consumer. 
SEC. 113. CARBON STORAGE VALIDATION AND TESTING. 
Section 963 of the Energy Policy Act of 2005 (42 
U.S.C. 16293) is amended to read as follows: 
‘‘SEC. 963. CARBON STORAGE VALIDATION AND TESTING. 
‘‘(a) CARBON STORAGE.—The Secretary shall carry 
out a program of research, development, and demonstra-
tion for carbon storage. The program shall— 
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‘‘(1) in coordination with relevant Federal agen-
cies, develop and maintain mapping tools and re-
sources that assess the capacity of geologic storage 
formations in the United States; 
‘‘(2) develop monitoring tools, modeling of geo-
logic formations, and analyses to predict and verify 
carbon dioxide containment and account for seques-
tered carbon dioxide in geologic storage sites; 
‘‘(3) research potential environmental, safety, 
and health impacts in the event of a leak to the at-
mosphere or to an aquifer, and any corresponding 
mitigation actions or responses to limit harmful con-
sequences; 
‘‘(4) evaluate the interactions of carbon dioxide 
with formation solids and fluids, including the pro-
pensity of injections to induce seismic activity; 
‘‘(5) assess and ensure the safety of operations 
related to geologic sequestration of carbon dioxide; 
‘‘(6) determine the fate of carbon dioxide con-
current with and following injection into geologic 
formations; and 
‘‘(7) provide information to State, local, and 
Tribal governments, the Environmental Protection 
Agency, and other appropriate entities, to support 
development of a regulatory framework for commer-
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cial-scale sequestration operations that ensure the 
protection of human health and the environment. 
‘‘(b) GEOLOGIC SETTINGS.—In carrying out research 
activities under this section, the Secretary shall consider 
a variety of candidate geologic settings, including— 
‘‘(1) operating oil and gas fields; 
‘‘(2) depleted oil and gas fields; 
‘‘(3) residual oil zones; 
‘‘(4) unconventional reservoirs and rock types; 
‘‘(5) unmineable coal seams; 
‘‘(6) deep saline formations; 
‘‘(7) deep geologic systems that may be used as 
engineered reservoirs to extract economical quan-
tities of brine from geothermal resources of low per-
meability or porosity; 
‘‘(8) deep geologic systems containing in situ 
carbon dioxide mineralization formations; and 
‘‘(9) offshore geologic formations. 
‘‘(c) REGIONAL CARBON SEQUESTRATION PARTNER-
SHIPS.— 
‘‘(1) IN GENERAL.—The Secretary shall carry 
out large-scale carbon sequestration demonstrations 
for geologic containment of carbon dioxide to collect 
and validate information on the cost and feasibility 
of commercial deployment of technologies for the 
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geologic containment of carbon dioxide. The Sec-
retary may fund new demonstrations or expand the 
work completed at one or more of the existing re-
gional carbon sequestration partnerships. 
‘‘(2) 
DEMONSTRATION
COMPONENTS.—Each 
demonstration described in paragraph (1) shall in-
clude longitudinal tests involving carbon dioxide in-
jection and monitoring, mitigation, and verification 
operations. 
‘‘(3) CLEARINGHOUSE.—The National Energy 
Technology Laboratory shall act as a clearinghouse 
of shared information and resources for the regional 
carbon sequestration partnerships and any new dem-
onstrations funded under this section. 
‘‘(4) REPORT.—Not later than 1 year after the 
date of enactment of the Clean Energy Future 
Through Innovation Act of 2020, the Secretary shall 
provide to Congress a report that— 
‘‘(A) assesses the progress of all regional 
carbon sequestration partnerships; 
‘‘(B) identifies the remaining challenges in 
achieving carbon sequestration that is reliable 
and safe for the environment and public health; 
and 
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‘‘(C) creates a roadmap to integrate geo-
logic sequestration sites and carbon utilization 
with large sources of carbon dioxide in the 
United States economy. 
‘‘(5) LARGE-SCALE
CARBON
SEQUESTRATION 
DEMONSTRATION.—For purposes of this subsection, 
‘large-scale carbon sequestration demonstration’ 
means the injection of more than 1,000,000 tons of 
carbon dioxide annually or injection at a scale that 
demonstrates the ability to inject and sequester sev-
eral million metric tons carbon dioxide for at least 
10 years. 
‘‘(d) INTEGRATED STORAGE PROJECTS.—The Sec-
retary may carry out a program for purposes of 
transitioning the large-scale storage demonstrations under 
subsection (c) into integrated, commercial storage com-
plexes. The program shall focus on— 
‘‘(1) qualifying geologic storage sites in order to 
accept large volumes of carbon dioxide acceptable for 
commercial contracts; 
‘‘(2) understanding the technical and commer-
cial viability of storage sites; 
‘‘(3) developing the qualification processes that 
will be necessary for a diverse range of geologic stor-
age sites to commercially accept carbon dioxide; and 
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‘‘(4) any other activities the Secretary deems 
necessary to transition the large-scale demonstration 
storage projects into commercial ventures. 
‘‘(e) COST SHARING.—The Secretary shall require 
cost sharing under this section in accordance with section 
988. 
‘‘(f) FEDERAL DATA COLLECTION.—The Secretary, 
in coordination with other Federal agencies including the 
United States Geological Survey, shall continue and ex-
pand ongoing Federal data collection and analysis activi-
ties related to carbon dioxide storage, economics, and spa-
tial relationships on a local and regional scale, in coordina-
tion with State and regional entities. 
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—For ac-
tivities under this section, there are authorized to be ap-
propriated to the Secretary— 
‘‘(1) $250,000,000 for fiscal year 2021; 
‘‘(2) $250,000,000 for fiscal year 2022; 
‘‘(3) $250,000,000 for fiscal year 2023; 
‘‘(4) $250,000,000 for fiscal year 2024; and 
‘‘(5) $250,000,000 for fiscal year 2025.’’. 
SEC. 114. CARBON UTILIZATION. 
(a) PROGRAM.—Subtitle F of title IX of the Energy 
Policy Act of 2005 (42 U.S.C. 16291 et seq.) is amended 
by adding at the end the following: 
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‘‘SEC. 969. CARBON UTILIZATION. 
‘‘(a) IN GENERAL.—The Secretary shall carry out a 
program of research, development, and demonstration for 
carbon utilization. The program shall— 
‘‘(1) assess and monitor potential changes in 
life cycle carbon dioxide emissions, and other envi-
ronmental safety indicators of new technologies, 
practices, processes, or methods, used in enhanced 
hydrocarbon recovery; 
‘‘(2) identify and evaluate novel uses for car-
bon, including the conversion of carbon dioxide for 
commercial and industrial products, such as— 
‘‘(A) chemicals; 
‘‘(B) plastics; 
‘‘(C) building materials; 
‘‘(D) fuels; 
‘‘(E) cement; or 
‘‘(F) products of coal utilization in power 
systems (as such term is defined in section 
962(e)), or other applications; and 
‘‘(3) identify and develop alternative uses for 
coal, including products derived from carbon engi-
neering, carbon fiber, and coal conversion methods. 
‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—For ac-
tivities under this section, there are authorized to be ap-
propriated to the Secretary— 
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‘‘(1) $75,000,000 for fiscal year 2021; 
‘‘(2) $75,000,000 for fiscal year 2022; 
‘‘(3) $75,000,000 for fiscal year 2023; 
‘‘(4) $75,000,000 for fiscal year 2024; and 
‘‘(5) $75,000,000 for fiscal year 2025.’’. 
(b) STUDY.—No later than one year following the 
date of enactment of the Clean Energy Future Through 
Innovation Act of 2020, the Secretary shall enter into an 
agreement with the National Academies to conduct a 
study assessing the barriers and opportunities related to 
commercializing the utilization of carbon dioxide in the 
United States. Such study shall— 
(1) analyze the technical feasibility and related 
challenges to commercial utilization of carbon diox-
ide, including— 
(A) creating a national system of carbon 
dioxide pipelines; 
(B) mitigating environmental impacts; and 
(C) regional economic challenges and op-
portunities; 
(2) identify potential markets, industries, or 
sectors that may benefit from greater access to com-
mercial carbon dioxide; 
(3) assess the current state of infrastructure 
and any necessary updates to allow for the integra-
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tion of safe and reliable carbon dioxide transpor-
tation, utilization, and storage; 
(4) estimate the economic impact of a well-inte-
grated national carbon dioxide pipeline system; 
(5) assess the global status and progress of car-
bon utilization technologies (both chemical and bio-
logical) in practice today that utilize waste carbon 
(including carbon dioxide, carbon monoxide, meth-
ane, and biogas) from power generation, biofuels 
production, and other industrial processes; 
(6) identify emerging technologies and ap-
proaches for carbon utilization that show promise 
for scale-up, demonstration, deployment, and com-
mercialization; 
(7) analyze the factors associated with making 
carbon utilization technologies viable at a commer-
cial scale, including carbon waste stream availability, 
economics, market capacity, energy, and lifecycle re-
quirements; 
(8) assess the major technical challenges associ-
ated with increasing the commercial viability of car-
bon reuse technologies, and identify the research and 
development questions that will address those chal-
lenges; 
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(9) assess current research efforts, including 
basic, applied, engineering, and computational, that 
are addressing these challenges and identify gaps in 
the current research portfolio; and 
(10) develop a comprehensive research agenda 
that addresses both long- and short-term research 
needs and opportunities. 
SEC. 115. ADVANCED ENERGY SYSTEMS. 
Subtitle F of title IX of the Energy Policy Act of 
2005 (42 U.S.C. 16291 et seq.) is further amended by 
adding at the end the following: 
‘‘SEC. 969A. ADVANCED ENERGY SYSTEMS. 
‘‘(a) IN GENERAL.—The Secretary shall carry out a 
program of research, development, demonstration, and 
commercial application of technologies that represent a 
significant change in the methods used to generate elec-
tricity from fuels and that will enable a step change in 
performance, efficiency, and cost of electricity, and that 
reduce emissions from fossil fuel power generation in the 
following areas: 
‘‘(1) High-efficiency turbines for any advanced 
power system that will lead to natural gas turbine 
combined cycle efficiency of 67 percent or combus-
tion turbine efficiency of 50 percent. 
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‘‘(2) Supercritical carbon dioxide, with an em-
phasis on developing directly fired and indirectly 
fired cycles in the next 10 years. 
‘‘(3) Advanced combustion systems, including 
oxy-combustion systems and chemical looping. 
‘‘(4) Gasification systems to enable carbon cap-
ture, improve efficiency, and reduce capital and op-
erating costs. 
‘‘(5) Thermal cycling with ramping or rapid 
black start capabilities that do not compromise effi-
ciency or environmental performance. 
‘‘(6) Small-scale and modular technologies with 
reduced carbon outputs or carbon capture that can 
support incremental power generation capacity 
needs. 
‘‘(7) Turbines and other technology for the use 
of hydrogen and ammonia generated from fossil 
fuels for power generation. 
‘‘(b) PRIORITY.—In carrying out the program under 
subsection (a), the Secretary shall give priority to poten-
tially transformational technologies that would enable very 
substantial improvements in performance, efficiency, or 
cost of electricity as compared to the technology in exist-
ence on the date of enactment of this section. 
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‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—For ac-
tivities under this section, there are authorized to be ap-
propriated to the Secretary $1,275,000,000 for each of fis-
cal years 2021 through 2025.’’. 
Subtitle B—Deployment of Carbon 
Capture, Utilization, and Stor-
age 
With 
Commercial-Scale 
Electricity Generation Facilities 
SEC. 121. DEPLOYMENT OF CARBON CAPTURE, UTILIZA-
TION, AND STORAGE TECHNOLOGY WITH 
COMMERCIAL-SCALE ELECTRICITY GENERA-
TION FACILITIES. 
(a) IN GENERAL.—Subtitle B of title IV of the En-
ergy Policy Act of 2005 (42 U.S.C. 15971 et seq.) is 
amended by adding after section 417 the following: 
‘‘SEC. 418. FEDERAL SUPPORT FOR DEPLOYMENT OF CAR-
BON CAPTURE, UTILIZATION, AND STORAGE 
WITH ELECTRICITY GENERATION. 
‘‘(a) IN GENERAL.—Subject to the limitations in sub-
section (b), the Secretary shall provide support for deploy-
ment and use of carbon capture, utilization, and storage 
at commercial-scale electricity generation facilities by en-
tering into a contract for differences, which may not ex-
ceed a term of more than 30 years, to provide price cer-
tainty for the sale of the electricity generated by, or carbon 
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dioxide captured by, an eligible power system to a third 
party. 
‘‘(b) LIMITATIONS.— 
‘‘(1) INITIAL CAP.—Except as provided in para-
graph (2), the Secretary may not provide support 
described in subsection (a)— 
‘‘(A) for eligible power systems with more 
than 3 gigawatt of cumulative electricity gener-
ating capacity; or 
‘‘(B) in a cumulative amount projected to 
have a value exceeding $10,000,000,000. 
‘‘(2) ADDITIONAL SUPPORT REQUIRED.—If the 
Secretary determines, based on the study under-
taken pursuant to subsection (c), that additional 
support for the commercial-scale deployment of car-
bon capture, utilization, and storage at electricity 
generation facilities beyond that provided under 
paragraph (1) is required to establish the market vi-
ability of carbon capture, utilization and storage 
consistent with the purposes of this title, the Sec-
retary may provide support under subsection (a) for 
additional eligible power systems with not more than 
8 gigawatts of additional cumulative electricity gen-
erating capacity. 
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‘‘(c) STUDY.—The Secretary shall conduct a study to 
evaluate whether the support provided under subsection 
(a), combined with other Federal programs and policies 
and with commercial technology deployments, has estab-
lished the market viability of using carbon capture, utiliza-
tion, and storage at commercial-scale electricity gener-
ating facilities consistent with the purposes of this title. 
The study shall be initiated no later than the earlier of— 
‘‘(1) the date the Secretary reaches the initial 
cap on support for eligible power systems in sub-
section (b)(1); or 
‘‘(2) the date that is 7 years after the date of 
enactment of this section. 
‘‘(d) APPLICATION.— 
‘‘(1) IN GENERAL.—An entity seeking support 
provided under subsection (a) shall submit to the 
Secretary an application at such time and in such 
manner as the Secretary may require. 
‘‘(2) CRITERIA.—In evaluating such an applica-
tion, the Secretary shall consider technical, financial, 
and other factors that the Secretary determines ap-
propriate. 
‘‘(e) CONSIDERATIONS.—In implementing subsection 
(a), the Secretary shall seek to support the use of carbon 
capture, utilization, and storage with projects covering di-
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verse fuel types and technologies, including first-of-its- 
kind technology for carbon capture, utilization, and stor-
age capacity. 
‘‘(f) DEFINITIONS.—In this section: 
‘‘(1) POWER SYSTEM.—The term ‘power sys-
tem’ means an electricity generating unit that uti-
lizes fossil fuels to generate electricity that is pro-
vided to the electric grid or directly to a consumer. 
‘‘(2) ELIGIBLE POWER SYSTEM.—The term ‘eli-
gible power system’ means a power system that— 
‘‘(A) is equipped with carbon capture tech-
nology, or otherwise produces a separate carbon 
dioxide stream that is suitable for utilization or 
storage; 
‘‘(B) is designed to capture carbon dioxide 
that would otherwise be emitted by the power 
system; and 
‘‘(C) will utilize or store the captured car-
bon dioxide, or has contracted with one or more 
other entities to utilize or store the captured 
carbon dioxide.’’. 
(b) TABLE OF CONTENTS AMENDMENT.—The table 
of contents for the Energy Policy Act of 2005 is amended 
by adding after the item relating to section 417 the fol-
lowing: 
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‘‘Sec. 418. Federal support for deployment of carbon capture, utilization, and 
storage with electricity generation.’’. 
Subtitle C—Federal Support for 
Commercial Deployment of Car-
bon Capture, Utilization, and 
Storage 
SEC. 131. ENHANCEMENT OF CARBON DIOXIDE SEQUES-
TRATION CREDIT. 
(a) EXTENSION
OF
CREDIT
PERIOD.—Section 
45Q(a) of the Internal Revenue Code of 1986 is amend-
ed— 
(1) by striking ‘‘12-year’’ in paragraph (3)(A) 
and inserting ‘‘20-year’’; and 
(2) by striking ‘‘12-year’’ in paragraph (4)(A) 
and inserting ‘‘20-year’’. 
(b) EXTENSION OF QUALIFIED FACILITY CONSTRUC-
TION BEGINNING DATE.—Section 45Q(d)(1) of such Code 
is amended by striking ‘‘January 1, 2024’’ and inserting 
‘‘January 1, 2033’’. 
SEC. 132. REFORM OF LOAN GUARANTEE PROGRAM. 
Section 1703 of the Energy Policy Act of 2005 (42 
U.S.C. 16513) is amended— 
(1) by striking subsection (e) and inserting the 
following: 
‘‘(e) QUALIFICATION OF FACILITIES RECEIVING TAX 
CREDITS OR FINANCIAL ASSISTANCE.—Notwithstanding 
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any other provision of law, a project that receives tax cred-
its or other financial assistance for clean coal technology 
shall not be disqualified from receiving a guarantee under 
this subchapter.’’; and 
(2) by inserting the following new subsection 
after subsection (e): 
‘‘(f) IMPLEMENTION.—In implementing the authority 
under this section with respect to loan guarantees issued 
after the date of enactment of the Clean Energy Future 
Through Innovation Act of 2020, the Secretary shall— 
‘‘(1) adjust fees and application requirements to 
the scale of a project to ensure that the costs of pre-
paring and submitting an application are not an 
undue barrier to participation by smaller, lower risk 
projects; 
‘‘(2) ensure that program credit rating require-
ments do not, as applied, act as an obstacle to par-
ticipation in the loan guarantee program by first-of- 
a-kind projects, consistent with the purpose of the 
loan guarantee program to enable debt financing for 
first-of-a-kind projects that would not otherwise have 
access to commercial debt markets; and 
‘‘(3) for first-of-a-kind projects, cover the cost 
of the guarantee with appropriated funds rather 
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than requiring the borrower to pay some or all of 
the cost of the guarantee under section 1702(b).’’. 
SEC. 133. PRIVATE ACTIVITY BONDS FOR CARBON DIOXIDE 
CAPTURE FACILITIES. 
(a) IN GENERAL.—Section 142(a) of the Internal 
Revenue Code of 1986 is amended by striking ‘‘or’’ at the 
end of paragraph (14), by striking the period at the end 
of paragraph (15) and inserting ‘‘, or’’, and by adding at 
the end the following new paragraph: 
‘‘(16) qualified carbon dioxide capture facili-
ties.’’. 
(b) QUALIFIED CARBON DIOXIDE CAPTURE FACIL-
ITY.—Section 142 of such Code is amended by adding at 
the end the following new subsection: 
‘‘(n) QUALIFIED CARBON DIOXIDE CAPTURE FACIL-
ITY.— 
‘‘(1) IN GENERAL.—For purposes of subsection 
(a)(16), the term ‘qualified carbon dioxide capture 
facility’ means the eligible components of an indus-
trial carbon dioxide facility. 
‘‘(2) DEFINITIONS.—For purposes of this sub-
section— 
‘‘(A) ELIGIBLE
COMPONENT.—The term 
‘eligible component’ means, with respect to any 
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industrial carbon dioxide facility, any compo-
nent installed in such facility that— 
‘‘(i) satisfies the requirements under 
paragraph (3), and 
‘‘(ii)(I) is used for the purpose of cap-
ture, treatment and purification, compres-
sion, transportation, or on-site storage of 
carbon dioxide produced by such facility, 
or 
‘‘(II) is integral or functionally related 
and subordinate to a process described in 
section 48B(c)(2) (determined by sub-
stituting ‘carbon dioxide’ for ‘carbon mon-
oxide’). 
‘‘(B) INDUSTRIAL CARBON DIOXIDE FACIL-
ITY.— 
‘‘(i) IN GENERAL.—The term ‘indus-
trial carbon dioxide facility’ means a facil-
ity that emits carbon dioxide (including 
from any fugitive emissions source) that is 
created as a result of any of the following 
processes: 
‘‘(I) Fuel combustion for elec-
tricity generation or other purposes. 
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‘‘(II) Gasification for electricity 
generation or other purposes. 
‘‘(III) Bioindustrial. 
‘‘(IV) Fermentation. 
‘‘(V) Any manufacturing industry 
described in section 48B(c)(7). 
‘‘(ii) EXCEPTIONS.—Such term shall 
not include— 
‘‘(I) any geological gas facility, or 
‘‘(II) any air separation unit that 
does not qualify as gasification equip-
ment or is not a necessary component 
of an oxy-fuel combustion process, a 
supercritical carbon dioxide process, 
or other advanced power system. 
‘‘(iii) GEOLOGICAL
GAS
FACILITY.— 
The term ‘geological gas facility’ means a 
facility that— 
‘‘(I) produces a raw product con-
sisting of gas or mixed gas and liquid 
from a geological formation, 
‘‘(II) transports or removes im-
purities from such product, or 
‘‘(III) separates such product 
into its constituent parts. 
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‘‘(3) CAPTURE AND STORAGE REQUIREMENT.— 
For purposes of this subsection— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), a component shall not be 
treated as meeting the requirements of this 
paragraph with respect to an industrial carbon 
dioxide facility unless such component has a 
capture and storage percentage that is at least 
65 percent. 
‘‘(B) EXCEPTION.—In the case of an in-
dustrial carbon dioxide facility with a capture 
and storage percentage that is less than 65 per-
cent, a component with respect to such facility 
shall not be treated as meeting the require-
ments of this paragraph unless the percentage 
of the cost of such component that is financed 
by tax-exempt bonds is not greater than such 
capture and storage percentage. 
‘‘(C) CAPTURE
AND
STORAGE
PERCENT-
AGE.— 
‘‘(i) IN GENERAL.—The capture and 
storage percentage shall be an amount, ex-
pressed as a percentage, equal to the 
quotient of— 
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‘‘(I) the total metric tons of car-
bon dioxide annually captured, trans-
ported, and injected into a facility for 
geologic storage, or an enhanced oil or 
gas recovery well followed by geologic 
storage, divided by 
‘‘(II) the total metric tons of car-
bon dioxide which would otherwise be 
released into the atmosphere each 
year as industrial emission of green-
house gas if the component were not 
installed in the industrial carbon diox-
ide facility. 
‘‘(ii) LIMITED APPLICATION OF ELIGI-
BLE COMPONENTS.—In the case of eligible 
components that are designed to capture 
carbon dioxide solely from specific sources 
of emissions or portions thereof within an 
industrial carbon dioxide facility, the cap-
ture and storage percentage under this 
subparagraph shall be determined based 
only on such specific sources of emissions 
or portions thereof.’’. 
(c) VOLUME CAP.—Section 146(g)(4) of such Code 
is amended by striking ‘‘paragraph (11) of section 142(a) 
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(relating to high-speed intercity rail facilities)’’ and insert-
ing ‘‘paragraph (11) or (16) of section 142(a)’’. 
(d) CLARIFICATION OF PRIVATE BUSINESS USE.— 
Section 141(b)(6) of such Code is amended by adding at 
the end the following new subparagraph: 
‘‘(C) CLARIFICATION RELATING TO QUALI-
FIED CARBON DIOXIDE CAPTURE FACILITIES.— 
For purposes of this subsection, the sale of car-
bon dioxide produced by a qualified carbon di-
oxide capture facility (as defined in section 
142(n)) which is owned by a governmental unit 
shall not constitute private business use.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to obligations issued after the date 
of enactment of this Act. 
SEC. 134. EXTENSION OF PUBLICLY TRADED PARTNERSHIP 
OWNERSHIP STRUCTURE. 
(a) IN GENERAL.—Section 7704(d)(1)(E) of the In-
ternal Revenue Code of 1986 is amended— 
(1) by striking ‘‘income and gains derived from 
the exploration’’ and inserting ‘‘income and gains 
derived from any of the following: 
‘‘(i) The exploration’’; and 
(2) by inserting a period after ‘‘40A(d)(1)’’ and 
inserting thereafter the following: 
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‘‘(ii) The production, storage, or 
transportation of any fuel which— 
‘‘(I) uses carbon dioxide captured 
from an anthropogenic source or the 
atmosphere as its primary feedstock, 
and 
‘‘(II) is determined by the Sec-
retary, in consultation with the Sec-
retary of Energy and the Adminis-
trator of the Environmental Protec-
tion Agency, to achieve a reduction of 
not less than a 60 percent in lifecycle 
greenhouse gas emissions (as defined 
in section 211(o)(1)(H) of the Clean 
Air Act) compared to baseline lifecycle 
greenhouse gas emissions (as defined 
in section 211(o)(1)(C) of such Act). 
This clause shall not apply to any fuel 
which uses as its primary feedstock carbon 
dioxide which is deliberately released from 
naturally occurring subsurface springs. 
‘‘(iii) The production of any product 
or the generation of electric power from a 
project— 
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‘‘(I) which meets the require-
ments of subparagraphs (A) and (B) 
of section 48B(c)(1), and 
‘‘(II) not less than 75 percent of 
the total carbon dioxide emissions of 
which is qualified carbon oxide (as de-
fined in section 45Q(c)) which is dis-
posed of or utilized as provided in 
paragraph (6). 
‘‘(iv) The generation or storage of 
electric power (including associated income 
from the sale or marketing of energy, ca-
pacity, resource adequacy, and ancillary 
services) produced from any power genera-
tion facility which is, or from any power 
generation unit within, a qualified facility 
under section 45Q(d) and not less than 50 
percent (30 percent in the case of a facility 
or unit placed in service before January 1, 
2017) of the total carbon dioxide emissions 
of which is qualified carbon oxide which is 
disposed of or utilized as provided in para-
graph (7). 
‘‘(v) The sale of any good or service 
from any facility (other than a power gen-
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eration facility) which is a qualified facility 
described in section 45Q(c) and the cap-
tured qualified carbon oxide (as so defined) 
of which is disposed of as provided in para-
graph (6).’’. 
(b) DISPOSAL AND UTILIZATION OF CAPTURED CAR-
BON DIOXIDE.—Section 7704(d) of such Code is amended 
by adding at the end the following new paragraph: 
‘‘(6) DISPOSAL AND UTILIZATION OF CAPTURED 
CARBON DIOXIDE.—For purposes of clauses (iii)(II) 
and (iv)(II) of paragraph (1)(E), carbon dioxide is 
disposed of or utilized as provided in this paragraph 
if such carbon dioxide is— 
‘‘(A) placed into secure geological storage 
(as determined under section 45Q(f)(2)), 
‘‘(B) used as a tertiary injectant (as de-
fined in section 45Q(e)(3)) in a qualified en-
hanced oil or natural gas recovery project (as 
defined in section 45Q(e)(2)) and placed into 
secure geological storage (as so determined), 
‘‘(C) fixed through photosynthesis or 
chemosynthesis (including through the growing 
of algae or bacteria), 
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‘‘(D) chemically converted to a material or 
chemical compound in which it is securely 
stored, or 
‘‘(E) used for any other purpose which the 
Secretary determines has the potential to 
strengthen or significantly develop a competitive 
market for carbon dioxide captured from man- 
made sources.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date of the enactment 
of this Act, in taxable years ending after such date. 
SEC. 135. PRODUCTION TAX CREDIT FOR CERTAIN ELEC-
TRICITY GENERATION USING CARBON CAP-
TURE UTILIZATION AND STORAGE. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
section: 
‘‘SEC. 45U. ELECTRICITY PRODUCED USING CARBON CAP-
TURE UTILIZATION AND STORAGE TECH-
NOLOGY. 
‘‘(a) GENERAL RULE.—For purposes of section 38, 
the carbon capture production credit for any taxable year 
is an amount equal to— 
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‘‘(1) in the case of a qualified facility using fos-
sil fuels, the product of— 
‘‘(A) the megawatt hours of electricity— 
‘‘(i) produced by the taxpayer at a 
qualified facility during the 20-year period 
beginning on the date the facility was 
originally placed in service, and 
‘‘(ii) sold by the taxpayer to an unre-
lated person during the taxable year, mul-
tiplied by 
‘‘(B)(i) $30 per megawatt hour in the case 
of a qualified facility storing carbon in secure 
geological storage, or 
‘‘(ii) $24 per megawatt hour in the case of 
a qualified facility using captured carbon oxide 
as a tertiary injectant in a qualified enhanced 
oil or natural gas recovery project, multiplied by 
‘‘(C) the discount factor, 
‘‘(2) in the case of electricity generation facili-
ties using exclusively qualified hydrogen, qualified 
ammonia, or qualified blends, the product of— 
‘‘(A) the megawatt hours of electricity— 
‘‘(i) produced by the taxpayer at a 
qualified facility during the 20-year period 
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beginning on the date the facility was 
originally placed in service, and 
‘‘(ii) sold by the taxpayer to an unre-
lated person during the taxable year, mul-
tiplied by 
‘‘(B) $100 per megawatt hour. 
‘‘(b) DEFINITIONS.—For purposes of this section: 
‘‘(1) DISCOUNT FACTOR.—The term ‘discount 
factor’ means an amount equal to 90 divided by the 
annual carbon dioxide emissions rate expressed in 
pounds per megawatt-hour for a qualified facility, 
except that— 
‘‘(A) if the annual carbon dioxide emis-
sions rate for a qualified facility is less than 90 
pounds per megawatt-hour, the discount factor 
is equal to 1, and 
‘‘(B) if the annual carbon dioxide emis-
sions rate for a qualified facility is greater 180 
pounds per megawatt-hour, the discount factor 
is equal to 0. 
‘‘(2) QUALIFIED AMMONIA.—The term ‘quali-
fied ammonia’ means ammonia fuel produced with 
less than 17.5 pounds of carbon dioxide emissions 
per million Btu of gross fuel heating value. 
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‘‘(3) QUALIFIED BLEND.—The term ‘qualified 
blend’ means a blend of qualified hydrogen or quali-
fied ammonia with fossil fuel in which the fossil fuel 
provides no more than 30 percent of the heating 
value input. 
‘‘(4) QUALIFIED FACILITY.—The term ‘quali-
fied facility’ means an electricity generation plant 
that— 
‘‘(A) is equipped with carbon capture 
equipment, the construction of which com-
menced before January 1, 2033, 
‘‘(B) captures carbon oxide using carbon 
capture equipment, 
‘‘(C) stores captured carbon oxide in se-
cure geological storage or uses captured carbon 
oxide as a tertiary injectant in a qualified en-
hanced oil or natural gas recovery project, and 
‘‘(D) has not been the basis for a credit re-
ceived under section 45Q. 
‘‘(5) QUALIFIED HYDROGEN.—The term ‘quali-
fied hydrogen’ means hydrogen fuel produced with 
less than 17.5 pounds of carbon dioxide emissions 
per million Btu of gross fuel heating value.’’. 
(b) PART OF GENERAL BUSINESS CREDIT.—Section 
38(B) of such Code is amended by striking ‘‘plus’’ at the 
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end of paragraph (32), by striking the period at the end 
of paragraph (33) and inserting ‘‘, plus’’, and by adding 
at the end the following new paragraph: 
‘‘(34) the carbon capture production credit 
under section 45U(a).’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
is amended by adding at the end the following new item: 
‘‘Sec. 45U. Electricity produced using carbon capture utilization and storage 
technology.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to electricity sold and 
produced after the date of the enactment of this Act. 
SEC. 136. ELECTIVE PAYMENT OF CREDIT. 
(a) Subchapter B of chapter 65 of the Internal Rev-
enue Code is amended by adding at the end the following 
new section: 
‘‘SEC. 6431. ELECTIVE PAYMENT OF CREDITS RELATING TO 
CARBON OXIDE SEQUESTRATION. 
‘‘(a) ELECTION.—In the case of a taxpayer making 
an election (at such time and in such manner as the Sec-
retary may provide) under this section with respect to any 
portion of an applicable credit, such taxpayer shall be 
treated as making a payment against the tax imposed by 
subtitle A for the taxable year equal to the amount of such 
portion. 
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‘‘(b) DEFINITIONS AND SPECIAL RULES.—For pur-
poses of this section— 
‘‘(1) GOVERNMENTAL
ENTITIES
TREATED
AS 
TAXPAYERS.—In the case of an election under this 
section— 
‘‘(A) any State or local government, or a 
political subdivision thereof, or 
‘‘(B) an Indian Tribal government, 
shall be treated as a taxpayer for purposes of this 
section and determining any applicable credit. 
‘‘(2) APPLICABLE CREDIT.—The term ‘applica-
ble credit’ means each of the following credits that 
would (without regard to this section) be determined 
with respect to the taxpayer: 
‘‘(A) A carbon oxide sequestration credit 
under section 45Q. 
‘‘(B) A carbon capture production credit 
under section 45U. 
‘‘(3) INDIAN TRIBAL GOVERNMENT.—The term 
‘Indian Tribal government’ shall have the meaning 
given such term by section 139E. 
‘‘(4) TIMING.—The payment described in sub-
section (a) shall be treated as made on— 
‘‘(A) in the case of any government, or po-
litical subdivision, to which paragraph (1) ap-
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plies and for which no return is required under 
section 6011 or 6033(a), the later of the date 
that a return would be due under section 
6033(a) if such government or subdivision were 
described in that section or the date on which 
such government or subdivision submits a claim 
for credit or refund (at such time and in such 
manner as the Secretary shall provide), and 
‘‘(B) in any other case, the later of the due 
date of the return of tax for the taxable year 
or the date on which such return is filed. 
‘‘(5) WAIVER OF SPECIAL RULES.—In the case 
of an election under this section, the determination 
of any applicable credit shall be without regard to 
paragraphs (3) and (4)(A)(i) of section 50(b). 
‘‘(c) EXCLUSION FROM GROSS INCOME.—Gross in-
come of the taxpayer shall be determined without regard 
to this section. 
‘‘(d) DENIAL OF DOUBLE BENEFIT.—Solely for pur-
poses of section 38, in the case of a taxpayer making an 
election under this section, the applicable credit shall be 
reduced by the amount of the portion of such credit with 
respect to which the taxpayer makes such election.’’. 
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(b) CLERICAL AMENDMENT.—The table of sections 
for subchapter B of chapter 65 is amended by adding at 
the end the following new item: 
‘‘Sec. 6432. Elective payment of credits related to carbon oxide sequestration.’’. 
Subtitle D—Support for Carbon Di-
oxide Transportation and Se-
questration Infrastructure 
SEC. 141. SECURING GEOLOGIC RESERVOIRS FOR CARBON 
DIOXIDE. 
(a) IN GENERAL.—Subtitle B of title IV of the En-
ergy Policy Act of 2005 (42 U.S.C. 15971 et seq.) is fur-
ther amended by adding after section 418 (as added by 
this Act) the following new section: 
‘‘SEC. 419. SECURING GEOLOGIC RESERVOIRS FOR STOR-
AGE OF CARBON DIOXIDE. 
‘‘(a) IN GENERAL.—The Secretary shall establish a 
program to— 
‘‘(1) identify geological formations that are ca-
pable of storing, cumulatively, at least 250,000,000 
tons of carbon dioxide with a target storage cost of 
less than $10 per ton; 
‘‘(2) assess the cost of developing and operating 
a carbon dioxide sequestration facility at the geologi-
cal formations identified under paragraph (1); and 
‘‘(3) support the development of such carbon di-
oxide sequestration facility by providing grants or 
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other appropriate financial assistance to storage fa-
cility developers to— 
‘‘(A) secure property rights that are nec-
essary to enable carbon dioxide storage in such 
geologic formations; and 
‘‘(B) obtain necessary permits and ap-
proval to enable carbon dioxide storage in such 
geologic formations. 
‘‘(b) GEOGRAPHIC DIVERSITY.—The Secretary shall 
carry out subsection (a) with the goal of supporting devel-
opment of carbon dioxide sequestration facilities that are 
capable of storing significant volumes of carbon dioxide 
at reasonable cost in each of the regions covered by the 
regional carbon sequestration partnerships established 
pursuant to section 963. 
‘‘(c) APPLICATION.—An entity seeking a grant or 
other appropriate financial assistance provided under this 
section shall submit to the Secretary an application at 
such time and in such manner as the Secretary may re-
quire. 
‘‘(d) COST SHARING.—The Secretary shall consider 
the activities described under subsection (a)(3) to be sub-
ject to the cost share requirement for demonstration and 
commercial application activities under section 988(c).’’. 
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(b) TABLE OF CONTENTS AMENDMENT.—The table 
of contents for the Energy Policy Act of 2005 is further 
amended by adding after the item relating to section 418 
(as added by this Act) the following: 
‘‘Sec. 419. Securing geologic reservoirs for storage of carbon dioxide.’’. 
SEC. 142. FINANCIAL ASSISTANCE FOR CARBON DIOXIDE 
SEQUESTRATION INFRASTRUCTURE DEVEL-
OPMENT. 
(a) IN GENERAL.—Subtitle B of title IV of the En-
ergy Policy Act of 2005 (42 U.S.C. 15971 et seq.) is fur-
ther amended by adding after section 419 (as added by 
this Act) the following new section: 
‘‘SEC. 420. CARBON DIOXIDE SEQUESTRATION INFRA-
STRUCTURE DEVELOPMENT. 
‘‘(a) IN GENERAL.—The Secretary shall establish a 
program to provide grants to support— 
‘‘(1) the development of carbon dioxide pipeline 
infrastructure that is necessary to support the trans-
portation of the volumes of carbon dioxide that are 
expected to be captured at electricity generation fa-
cilities to appropriate sites for long term sequestra-
tion, giving priority to pipeline projects of significant 
length and significant throughput capacity; and 
‘‘(2) the development of geologic sequestration 
facilities that are necessary to support long-term se-
questration of the volumes of carbon dioxide that are 
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expected to be captured at electricity generation fa-
cilities. 
‘‘(b) APPLICATION.—Applications for a grant pro-
vided under this section shall be submitted at such time 
and in such manner as the Secretary may require. 
‘‘(c) COST SHARING.—The Secretary shall consider 
support for the development of carbon dioxide pipeline in-
frastructure or the development of geologic sequestration 
facility under subsection (a) to be subject to the cost share 
requirement for demonstration and commercial application 
activities under section 988(c). 
‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary to carry 
out this section $2,000,000,000 for each of fiscal years 
2021 through 2025.’’. 
(b) TABLE OF CONTENTS AMENDMENT.—The table 
of contents for the Energy Policy Act of 2005 is further 
amended by adding after the item relating to section 419 
(as added by this Act) the following: 
‘‘Sec. 420. Carbon dioxide sequestration infrastructure development.’’. 
SEC. 143. GEOLOGIC CARBON DIOXIDE SEQUESTRATION 
UTILITIES. 
(a) IN GENERAL.—The Secretary, in collaboration 
with the Secretary of Transportation and the Adminis-
trator of the Environmental Protection Agency, as appro-
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priate, may provide technical assistance to a State that 
is seeking to— 
(1) establish a government-owned carbon diox-
ide sequestration utility; or 
(2) regulate a privately owned carbon dioxide 
sequestration utility. 
(b) TECHNICAL ASSISTANCE.—Technical assistance 
provided under subsection (a) may include— 
(1) with respect to a government-owned carbon 
dioxide sequestration utility— 
(A) conducting engineering studies to sup-
port the development of a geologic sequestration 
facility; and 
(B) identifying potential carbon dioxide 
pipeline routes; and 
(2) with respect to State regulation of a pri-
vately owned carbon dioxide sequestration utility— 
(A) helping with the development of a 
State permitting system for a privately owned 
carbon dioxide sequestration utility; and 
(B) assisting with the developing regula-
tions for services provided by a privately owned 
carbon dioxide sequestration utility and the set-
ting of rates charged for such services. 
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(c) REPORT.—Not later than 1 year of the date of 
enactment of this section, the Secretary shall submit to 
Congress a report that— 
(1) characterizes Federal, State, and local regu-
lations that apply to carbon dioxide pipeline and se-
questration facility development and operation; 
(2) identifies any gaps in applicable regulations 
or standards that need to be addressed to ensure 
that carbon dioxide pipeline and sequestration facili-
ties are operated in a safe and effective manner; 
(3) evaluates whether regulation of the rates or 
terms of service for carbon dioxide transportation 
services or geologic sequestration services are nec-
essary to ensure fair access to such services; 
(4) evaluates whether eminent domain authority 
is necessary to enable development of carbon dioxide 
infrastructure in the public interest; and 
(5) provides recommended changes to Federal 
law that would support the development and use of 
carbon dioxide pipeline and geologic sequestration 
facilities in the public interest. 
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SEC. 144. COORDINATED FEDERAL PERMITTING FOR CAR-
BON DIOXIDE PIPELINE AND SEQUESTRA-
TION FACILITIES. 
Section 41001(6)(A) of the FAST Act (42 U.S.C. 
4370m note(6)(A)) is amended by striking ‘‘pipelines’’ and 
inserting ‘‘pipelines (including pipelines for the transpor-
tation of carbon dioxide), facilities for the geologic seques-
tration of carbon dioxide’’. 
SEC. 145. INTERAGENCY TASK FORCE ON CARBON DIOXIDE 
PIPELINES. 
(a) IN GENERAL.—Not later than 90 days after the 
date of enactment of this section, the Secretary shall es-
tablish an interagency task force (in this section referred 
to as the ‘‘Task Force’’) to assess the potential for a na-
tional system of carbon dioxide pipelines. 
(b) MEMBERSHIP.—The Task Force shall include 
representatives from each of the following: 
(1) The Department of Energy. 
(2) The Department of the Interior. 
(3) The Environmental Protection Agency. 
(4) The Department of Transportation. 
(5) The Federal Energy Regulatory Commis-
sion. 
(6) State, local, and Tribal governments. 
(7) Any other Federal agency that the Sec-
retary determines has a significant interest or role 
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in development of a national system of carbon diox-
ide pipelines. 
(c) DUTIES.—The Task Force shall— 
(1) conduct annual public workshops to discuss 
the potential of, and progress towards, an accessible 
and functioning national system of carbon dioxide 
pipelines; 
(2) provide to the public notice of such work-
shops not less than 60 days before the date on which 
each such workshop is conducted; 
(3) submit to Congress annual reports that 
summarize the activities and progress of the Task 
Force; and 
(4) as soon as practical, but not later than 5 
years after the date on which the Task Force is es-
tablished, submit to Congress a report that provides 
a plan to establish a national carbon dioxide pipeline 
system, which shall include— 
(A) information and recommendations re-
lated to engineering, building, siting, con-
structing, and maintaining a national carbon di-
oxide pipeline system; 
(B) recommendations for how to stream-
line the permitting process for new carbon diox-
ide pipelines; 
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(C) information on how to integrate new 
carbon dioxide pipelines into existing carbon di-
oxide pipeline infrastructure; 
(D) a determination on whether incentives 
or other policies are needed to encourage the 
utilization of the advanced leak detection and 
mitigation technology and monitoring capabili-
ties for the national carbon dioxide pipeline sys-
tem; 
(E) recommendations for how to regulate 
the national carbon dioxide pipeline system to 
ensure safety and mitigate environmental im-
pacts; and 
(F) an identification of other Federal and 
State policy challenges related to the develop-
ment of a national system of carbon dioxide 
pipelines. 
(d) SUNSET.—This section shall cease to be effective 
on the date that is 5 years after the date on which the 
Task Force is established. 
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TITLE II—INNOVATION IN RE-
NEWABLE ENERGY, ENERGY 
EFFICIENCY, AND STORAGE 
SEC. 201. ESTABLISHMENT OF TECHNOLOGY PERFORM-
ANCE AND COST TARGETS. 
(a) IN GENERAL.—Not later than one year after the 
date of enactment of this section, the Secretary shall es-
tablish technology performance and cost targets for three 
5-year periods to address existing gaps in technology, with 
the first such period starting on the date of enactment 
of this section and the last such period ending on the date 
that is 15 years following enactment. 
(b) TARGETS.—Technology and performance cost 
targets shall be established for each of the following tech-
nology categories: 
(1) Advanced renewable power technologies, 
which include— 
(A) large-scale, novel renewable power 
plants; 
(B) renewable hydrogen power plants, in-
cluding plants for which the hydrogen comes 
from renewable natural gas or biogas; 
(C) on-shore or off-shore wind power; 
(D) thermal or photovoltaic solar power; 
(E) hydropower; 
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(F) geothermal power; 
(G) biomass power; and 
(H) advanced renewable energy manufac-
turing techniques. 
(2) Mechanical, chemical, and thermal energy 
storage technologies, which include— 
(A) advanced grid-scale energy storage 
technologies with storage durations in the range 
of 10 to 50 hours; and 
(B) grid-scale energy storage projects that 
can economically balance electricity supply and 
demand across seasons. 
(3) Electricity transmission technologies, which 
include underground high-voltage direct current elec-
tricity transmission. 
(4) Commercial, industrial, and residential en-
ergy efficiency technologies, which include— 
(A) retrofit packages that reduce the en-
ergy used by an average single-family home by 
at least 50 percent at a cost of no more than 
$25,000 per such home; 
(B) smart heating, ventilation, and air con-
ditioning control technologies that— 
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(i) can be used in commercial build-
ings that have between 5,000 and 30,000 
square feet of floor area; 
(ii) can reduce heating, ventilation, 
and air conditioning energy consumption 
by an average of at least 20 percent com-
pared to average commercial buildings; 
(iii) yield energy cost savings that can 
provide at least a 50-percent annual return 
on the original investment; and 
(iv) may include a cloud-based infor-
mation technology; 
(C) those technologies that the Secretary 
identifies as having the ability to improve en-
ergy efficiency or reduce emissions in heavy in-
dustries, which include those that produce or 
refine aluminum, steel, cement, oil, or fertilizer; 
and 
(D) flexible load technology improvements 
to reduce peak demand. 
(5) Industrial process and building electrifica-
tion technologies, which include— 
(A) heat pump space heaters; 
(B) heat pump water heaters; 
(C) induction stoves; and 
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(D) advanced industrial process heat tech-
nologies. 
(c) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this section 
the following: 
(1) With respect to the advanced renewable en-
ergy technologies projects described in subparagraph 
(b)(1), $2,000,000,000 for each of fiscal years 2021 
through 2025. 
(2) With respect to the energy storage tech-
nologies projects described in subparagraph (b)(2), 
$400,000,000 for each of fiscal years 2021 through 
2025. 
(3) With respect to the transmission tech-
nologies and projects described in subparagraph 
(b)(3), $600,000,000 for each of fiscal years 2021 
through 2025. 
SEC. 202. ADVANCED INNOVATION AND COMMERCIALIZA-
TION PROGRAM. 
(a) IN GENERAL.—The Secretary, in collaboration 
with the National Laboratories, other Federal agencies, 
and private sector and university partners as the Secretary 
determines necessary, shall establish a program, to be 
known as the ‘‘Advanced Innovation and Commercializa-
tion Program’’, to carry out research, development, and 
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demonstration of technology that meets the targets estab-
lished for those technologies identified in section 201(b). 
(b) EARLY DEPLOYMENT.— 
(1) IN GENERAL.—The Secretary shall establish 
a program to provide grants for early deployment of 
the technologies demonstrated under the Advanced 
Innovation and Commercialization program under 
this section. 
(2) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated to carry out 
this subsection $3,000,000,000 for each of fiscal 
years 2021 through 2025. 
(c) FEDERAL PROCUREMENT.— 
(1) IN GENERAL.—The Secretary, in collabora-
tion with the Secretary of Defense and the Adminis-
trator of the General Services Administration, shall 
establish Federal procurement goals and deadlines 
for achieving such goals for those technologies iden-
tified in section 201(b)(1) through (5). 
(2) FEDERAL ENERGY AND ADVANCED TECH-
NOLOGY ENERGY PROCUREMENT.—The Secretary, in 
collaboration with the Secretary of Defense and the 
Administrator of General Services, shall— 
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(A) through administrative and regulatory 
actions, improve Federal procurement of the 
technologies described in paragraph (1); 
(B) identify and report on barriers to im-
proving Federal procurement of energy and 
technologies that require legislative changes; 
and 
(C) take due regard of the recommenda-
tions from the 2016 report entitled ‘‘Secretary 
of Energy Advisory Board Report of the Task 
Force on Federal Energy Management’’. 
SEC. 203. UPDATING MOBILE HOMES. 
(a) UPDATING MOBILE HOMES.—Not later than one 
year after the date of enactment of this section, the Sec-
retary shall establish a program to provide grants and 
technical assistance to individuals or businesses to facili-
tate the replacement of energy-inefficient mobile homes 
with highly efficient zero-energy modular homes. 
(b) AUTHORIZATION.—There are authorized to be ap-
propriated to carry out this section $2,500,000,000 for 
each of fiscal years 2021 through 2025, to remain avail-
able until expended. 
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SEC. 204. INVESTMENT TAX CREDITS FOR ENERGY BAT-
TERY STORAGE, OFFSHORE WIND, AND CER-
TAIN HYDROPOWER TECHNOLOGIES. 
(a) IN GENERAL.—Section 48(a)(3)(A) of the Inter-
nal Revenue Code of 1986, as amended by section 121, 
is amended by striking ‘‘or’’ at the end of clause (vii), and 
by adding at the end the following new clauses: 
‘‘(ix) equipment which generates wind 
energy from an offshore facility, 
‘‘(x) energy storage equipment, 
‘‘(xi) equipment which makes a non-
hydroelectric dam capable of generating 
hydropower, or 
‘‘(xii) equipment which generates geo-
thermal electricity through an enhanced 
geothermal system.’’. 
(b) ALLOWANCE OF 30 PERCENT CREDIT.— 
(1) IN GENERAL.—Section 48(a)(2)(A)(i)(II) of 
the Internal Revenue Code of 1986 is amended by 
striking ‘‘paragraph (3)(A)(i)’’ and inserting ‘‘clause 
(i), (ix), (x), (xi), or (xii) of paragraph (3)(A)’’. 
(2) PHASEOUT.—Section 48(a)(6) of such Code 
is amended— 
(A) by striking ‘‘solar energy’’ in the head-
ing and inserting ‘‘certain’’, and 
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(B) by striking ‘‘paragraph (3)(A)(i)’’ both 
places it appears and inserting ‘‘clause (i), (ix), 
(x), (xi), or (xii) of paragraph (3)(A)’’. 
(c) DEFINITIONS.— 
(1) ENERGY CREDIT.—Section 48(c) of the In-
ternal Revenue Code of 1986 is amended by adding 
at the end the following new paragraphs: 
‘‘(5) QUALIFIED OFFSHORE WIND PROPERTY.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
offshore wind property’ means an offshore facil-
ity using wind to produce electricity. 
‘‘(B) OFFSHORE
FACILITY.—The term 
‘offshore facility’ means any facility located in 
the inland navigable waters of the United 
States, including the Great Lakes, or in the 
coastal waters of the United States, including 
the territorial seas of the United States, the ex-
clusive economic zone of the United States, and 
the outer Continental Shelf of the United 
States. 
‘‘(6) ENERGY STORAGE EQUIPMENT.—The term 
‘energy storage equipment’ means equipment which 
receives, stores, and delivers energy using batteries, 
compressed air, pumped hydropower, hydrogen stor-
age (including hydrolysis and electrolysis), thermal 
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energy storage, regenerative fuel cells, flywheels, ca-
pacitors, superconducting magnets, or other tech-
nologies identified by the Secretary in consultation 
with the Secretary of Energy, and which has a ca-
pacity of not less than 5 Kilowatt hours. 
‘‘(7) NONHYDROELECTRIC
DAM.—The term 
‘nonhydroelectric dam’ means a nonhydroelectric 
dam that— 
‘‘(A) is licensed by the Federal Energy 
Regulatory Commission and meets all other ap-
plicable environmental, licensing, and regulatory 
requirements, 
‘‘(B) was placed in service before the date 
of the enactment of this paragraph and oper-
ated for flood control, navigation, or water sup-
ply purposes and did not produce hydroelectric 
power on the date of the enactment of this 
paragraph, 
‘‘(C) is operated so that the water surface 
elevation at any given location and time that 
would have occurred in the absence of the hy-
droelectric project is maintained, subject to any 
license requirements imposed under applicable 
law that change the water surface elevation for 
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the purpose of improving environmental quality 
of the affected waterway, and 
‘‘(D) includes one more hydroelectric 
projects which have been certified by the Sec-
retary, after consultation with the Federal En-
ergy Regulatory Commission, as meeting the re-
quirements of clause (iii). 
‘‘(8) ENHANCED GEOTHERMAL SYSTEM.—The 
term ‘enhanced geothermal system’ means a system 
to extract heat by creating a subsurface fracture 
system to which water can be added through injec-
tion wells.’’. 
(2) QUALIFYING ADVANCED ENERGY PROJECT 
CREDIT.—Section 48C(c)(1)(A)(i)(IV) of the Inter-
nal Revenue Code of 1986 is amended by inserting 
‘‘, including through direct air capture or carbon di-
oxide removal’’ after ‘‘emissions’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2019. 
(e) COORDINATION WITH FEDERAL POWER ACT.— 
Nothing in this section, or the amendments made by this 
section, shall affect the standards under which the Federal 
Energy Regulatory Commission issues licenses for and 
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regulates hydropower projects under part I of the Federal 
Power Act. 
SEC. 205. EXTENSION OF PRODUCTION TAX CREDIT FOR 
SOLAR AND ON-SHORE WIND. 
(a) WIND.—Section 45(d)(1) of the Internal Revenue 
Code of 1986 is amended by striking ‘‘January 1, 2021’’ 
and inserting ‘‘January 1, 2031’’. 
(b) SOLAR.—Section 45(d)(4)(A) of such Code is 
amended by striking ‘‘placed in service before January 1, 
2006’’ and inserting ‘‘construction of which begins before 
January 1, 2031’’. 
(c) APPLICATION OF PHASEOUT PERCENTAGE TO 
WIND FACILITIES.—Section 45(b)(5)(D) of such Code is 
amended by striking ‘‘January 1, 2021’’ and inserting 
‘‘January 1, 2031’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to facilities the construction of 
which begins after December 31, 2020. 
SEC. 206. RENEWAL OF QUALIFYING ADVANCED ENERGY 
PROJECT CREDIT. 
(a) IN GENERAL.—Section 48C(d)(2)(A) of the In-
ternal Revenue Code of 1986 is amended by striking ‘‘dur-
ing the 2-year period beginning on the date the Secretary 
establishes the program under paragraph (1)’’. 
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(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to applications received after the 
date of the enactment of this Act. 
SEC. 207. PERFORMANCE-BASED TAX CREDITS FOR COM-
MERCIAL AND RESIDENTIAL BUILDINGS. 
(a) The Internal Revenue Code of 1986 is amended 
by inserting the following after section 45U (as added by 
this Act): 
‘‘SEC. 45V. DEEP ENERGY RETROFITS AND ZERO-ENERGY 
COMMERCIAL AND RESIDENTIAL BUILDINGS. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) BTU.—The term ‘Btu’ means British 
Thermal Unit. 
‘‘(2) BUILDING ENERGY.—The term ‘building 
energy’ means energy consumed at the building site 
as measured at the site boundary, which includes 
heating, cooling, ventilation, domestic hot water, in-
door and outdoor lighting, plug loads, process en-
ergy, 
elevators 
and 
conveying 
systems, 
and 
intrabuilding transportation systems. 
‘‘(3) DEEP
ENERGY
RETROFIT.—The term 
‘deep energy retrofit’ means a project that uses en-
ergy efficiency measures and renewable energy re-
sources to reduce the energy use of an existing 
building by at least 50 percent on an annual basis 
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relative to the most recent 12-month period in which 
the building was fully occupied prior to the project, 
provided that energy efficiency measures must ac-
count for at least 80 percent of the reduction in en-
ergy use. 
‘‘(4) DELIVERED ENERGY.—The term ‘delivered 
energy’ means any type of energy that could be 
bought or sold as building energy, including elec-
tricity, steam, hot or chilled water, natural gas, 
biogas, landfill gas, coal, coke, propane, petroleum 
and its derivatives, residual fuel oil, alcohol-based 
fuels, wood, biomass, and any other material con-
sumed as fuel. 
‘‘(5) EXPORTED ENERGY.—The term ‘exported 
energy’ means on-site renewable energy supplied 
through the site boundary and used outside the site 
boundary. 
‘‘(6) HIGH RISE COMMERCIAL BUILDING.—The 
term ‘high rise commercial building’ means a com-
mercial building of four or more above grade stories. 
‘‘(7) HIGH RISE RESIDENTIAL BUILDING.—The 
term ‘high rise residential building’ means a multi-
family building with four or more above grade sto-
ries. 
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‘‘(8) kWH.—The term ‘kWh’ means Kilowatt 
Hour. 
‘‘(9) LOW RISE RESIDENTIAL BUILDING.—The 
term ‘low rise residential building’ means a single- 
family home or multifamily building with no more 
than three above grade stories. 
‘‘(10) ON-SITE
RENEWABLE
ENERGY.—The 
term ‘on-site renewable energy’ means any renewable 
energy collected and generated within the site 
boundary that is used for building energy, and the 
excess renewable energy exported outside the site 
boundary, provided that any renewable energy cer-
tificates associated with the on-site renewable energy 
must be retained or retired by the building owner or 
lessee to be claimed as on-site renewable energy. 
‘‘(11) RENEWABLE ENERGY.—The term ‘renew-
able energy’ means energy generated by biomass, 
hydro, geothermal, solar, wind, ocean thermal, wave 
action, or tidal action resources. 
‘‘(12) RENEWABLE
ENERGY
CERTIFICATE.— 
The term ‘renewable energy certificate’ means a cer-
tificate or credit that represents and conveys the en-
vironmental, social, or other nonpower qualities of 
one megawatt hour of renewable energy, and can be 
sold separately from the underlying physical elec-
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tricity associated with the renewable energy re-
source. 
‘‘(13) SITE BOUNDARY.—The term ‘site bound-
ary’ means the limits of the building site across 
which delivered energy and exported energy are 
measured. 
‘‘(14) SOURCE ENERGY.—The term ‘source en-
ergy’ means building energy plus the energy losses 
in thermal combustion in electricity generation re-
sources; and energy losses in transmission and dis-
tribution to the building site. 
‘‘(15) ZERO-ENERGY
BUILDING.—The term 
‘zero-energy building’ means a building for which, on 
a source energy basis, the actual annual delivered 
energy is less than or equal to the on-site renewable 
exported energy, provided that energy purchased 
from off-site and renewable energy generated on-site 
and then sold off-site shall be valued at 6000 Btu/ 
kWh. 
‘‘(16) ZERO-ENERGY-READY
BUILDING.—The 
term ‘zero-energy-ready building’ means a building 
that— 
‘‘(A) if it is a commercial building or high 
rise residential building— 
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‘‘(i) is in compliance with Standard 
90.1–2019 published by the American So-
ciety of Heating, Refrigerating and Air- 
Conditioning Engineers; 
‘‘(ii) is in compliance with Appendix 
CA (Solar-Ready Zone) of the 2021 Inter-
national Energy Conservation Code; and 
‘‘(iii) demonstrates that its energy 
consumption is at least 30 percent below 
the maximum permitted under American 
Society of Heating, Refrigerating and Air- 
Conditioning Engineers Standard 90.1– 
2019, as calculated using the methodology 
in Appendix G of such standard; and 
‘‘(B) if it is a low rise residential build-
ing— 
‘‘(i) has an Energy Rating Index of 
40 or less as calculated using the proce-
dures in Chapter 3 of the residential sec-
tion of the 2012 International Energy 
Conservation Code but excluding any re-
newable energy resources in the calcula-
tion, provided that certification of compli-
ance with the Energy Rating Index re-
quirement shall be made by a registered 
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architect or engineer by another profes-
sional authorized by the Secretary of En-
ergy by rule; 
‘‘(ii) is in compliance with Appendix 
RA (Solar-Ready Zone) of the 2021 Inter-
national Energy Conservation Code; and 
‘‘(iii) is certified under— 
‘‘(I) the Zero Energy Ready 
Homes program administered by the 
Department of Energy; or 
‘‘(II) the Passive House speci-
fications of the Passive Institute US 
or the International Passive House 
Institute. 
‘‘(b) ELIGIBILITY FOR TAX CREDIT.—To be eligible 
to receive a tax credit under this section, the builder or 
owner of a building must demonstrate that— 
‘‘(1) the building is located in the United 
States; 
‘‘(2) the building is at least 50 percent occupied 
when the tax credit is claimed; 
‘‘(3) if the building has implemented a deep en-
ergy retrofit, the project has been completed and 
certified as a deep energy retrofit by a registered ar-
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chitect or engineer, or by another professional au-
thorized by the Secretary of Energy by rule; and 
‘‘(4) if the building is a zero-energy building, 
the building has been zero-energy over a span of 12 
continuous months with at least 50 percent occu-
pancy as verified— 
‘‘(A) through certification by the Living 
Buildings Institute Zero Energy Certification 
Program; 
‘‘(B) through certification by the LEED 
Zero Energy Certification Program Verification; 
or 
‘‘(C) by another professional authorized by 
the Secretary of Energy by rule. 
‘‘(c) TAX CREDIT AMOUNTS.— 
‘‘(1) ZERO-ENERGY-READY
BUILDINGS.—The 
following tax credit amounts shall be awarded for 
certified zero-energy-ready buildings— 
‘‘(A) for a residential building with no 
more than four dwelling units, $5,000 per 
dwelling unit; 
‘‘(B) for a residential building with five or 
more dwelling units, $3,500 per dwelling unit; 
and 
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‘‘(C) for a commercial building, $3 per 
square foot of floor area. 
‘‘(2) ZERO-ENERGY BUILDINGS.—The following 
tax credit amounts shall be awarded for certified 
zero-energy buildings— 
‘‘(A) for a residential building with no 
more than four dwelling units, $5,000 per 
dwelling unit; 
‘‘(B) for a residential building with five or 
more dwelling units, $3,500 per dwelling unit; 
and 
‘‘(C) for a commercial building that is a 
zero-energy building for a period of 12 contin-
uous months starting after the building is at 
least 50 percent occupied, $3 per square foot of 
floor area, provided that a zero-energy building 
may also receive the zero-energy-ready building 
incentive if it meets the criteria for this incen-
tive. 
‘‘(3) DEEP ENERGY RETROFITS.—The following 
tax credit amounts shall be awarded to buildings 
upon completion of a deep energy retrofit— 
‘‘(A) for a residential building, $10,000 
per dwelling unit, up to a maximum of 
$1,000,000 per building; and 
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‘‘(B) for a commercial building, $25 per 
square foot of floor area, up to a maximum of 
$2,000,000 per building. 
‘‘(d) TAX CREDIT RECIPIENT.— 
‘‘(1) IN GENERAL.—The person eligible to re-
ceive a tax credit under this section shall be— 
‘‘(A) for a new residential building, the 
builder; 
‘‘(B) for an existing residential building 
that has undergone a deep energy retrofit, the 
builder; 
‘‘(C) for a new commercial building, the 
building owner; and 
‘‘(D) for an existing commercial building 
that has undergone a deep energy retrofit, the 
building owner. 
‘‘(2) TRANSFER OF CREDIT.—A building owner 
who is eligible to receive a tax credit under subpara-
graphs (C) and (D) of paragraph (1) may transfer 
such tax credit to the architect, builder, or con-
tractor. 
‘‘(e) EXCLUSIONS.—A building project is not eligible 
for tax credits under this section if the owner or builder 
has used another Federal tax incentive for the same 
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project, including incentives under sections 25C, 25D, and 
179D of this title. 
‘‘(f) SUNSET OF TAX CREDIT AUTHORITY.—The tax 
credit authority under this section shall terminate— 
‘‘(1) for zero-energy and zero-energy-ready resi-
dential buildings, one year after the Secretary of En-
ergy determines by rule that such buildings ac-
counted for at least 20 percent of new residential 
buildings in the most recent calendar year; 
‘‘(2) for zero-energy and zero-energy-ready com-
mercial buildings, one year after the Secretary of 
Energy determines by rule that such buildings ac-
counted for at least 20 percent of new commercial 
building construction in the most recent calendar 
year; 
‘‘(3) for deep energy retrofits to residential 
buildings, one year after the Secretary of Energy de-
termines by rule that at least 10 percent of units at 
residential buildings have undergone such retrofits; 
and 
‘‘(4) for deep energy retrofits to commercial 
buildings, one year after the Secretary of Energy de-
termines by rule that at least 10 percent of the floor 
area of commercial buildings has undergone such 
retrofits. 
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‘‘(g) RULEMAKING.—Not later than one year after 
enactment of this section, the Secretary, in coordination 
with the Secretary of Energy, shall promulgate rules to 
implement this section. 
‘‘(h) REPORT TO CONGRESS.—Not later than two 
years after enactment of this section, and each calendar 
year thereafter, the Secretary shall report to Congress on 
the use of tax credits under this section broken down by 
the categories in subsection (c), which report shall in-
clude— 
‘‘(1) the dollar value of tax credits awarded to 
date and in the prior calendar year; and 
‘‘(2) the number of units at residential build-
ings and the number of square feet of floor area in 
commercial buildings for which tax credits were 
awarded to date and in the prior year calendar 
year.’’. 
(b) TABLE OF CONTENTS.—The table of contents of 
the Internal Revenue Code of 1986 is further amended 
by inserting after the item relating to section 45U (as 
added by this Act) the following: 
‘‘Sec. 45V. Deep energy retrofits and zero-energy commercial and residential 
buildings.’’. 
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SEC. 208. EXTENSION OF PUBLICLY TRADED PARTNERSHIP 
OWNERSHIP STRUCTURE TO RENEWABLE EN-
ERGY PROJECTS. 
(a) IN GENERAL.—Section 7704(d)(1)(E) of the In-
ternal Revenue Code of 1986, as amended by section 134 
of this Act, is further amended by adding after clause (v) 
the following: 
‘‘(vi) The generation of electric power 
(including the leasing of tangible personal 
property used for such generation) exclu-
sively utilizing any resource described in 
section 45(c)(1) or energy property de-
scribed in section 48 (determined without 
regard to any termination date) or, in the 
case of a facility described in paragraph 
(3) or (7) of section 45(d) (determined 
without regard to any placed in service 
date or date by which construction of the 
facility is required to begin), the accepting 
or processing of such resource. 
‘‘(vii) The sale of electric power, ca-
pacity, resource adequacy, demand re-
sponse capabilities, or ancillary services 
that is produced or made available from 
any equipment or facility (operating as a 
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single unit or as an aggregation of units) 
the principal function of which is to— 
‘‘(I) use mechanical, chemical, 
electrochemical, hydroelectric, or ther-
mal processes to store energy that was 
generated at one time for conversion 
to electricity at a later time, or 
‘‘(II) store thermal energy for di-
rect use for heating or cooling at a 
later time in a manner that avoids the 
need to use electricity at that later 
time. 
‘‘(viii) The generation, storage, or dis-
tribution of thermal energy exclusively uti-
lizing 
property 
described 
in 
section 
48(c)(3) (determined without regard to 
subparagraphs (B) and (D) thereof and 
without regard to any placed in service 
date). 
‘‘(ix) The generation, storage, or dis-
tribution of thermal energy exclusively 
using any resource described in section 
45(c)(1) or energy property described in 
clause (i) or (iii) of section 48(a)(3)(A). 
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‘‘(x) The use of recoverable waste en-
ergy, as defined in section 371(5) of the 
Energy Policy and Conservation Act (42 
U.S.C. 6341(5)).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2020. 
SEC. 209. MANUFACTURER CREDIT FOR HIGH-EFFICIENCY 
HEAT PUMPS AND HEAT PUMP WATER HEAT-
ERS. 
(a) IN GENERAL.—The Internal Revenue Code of 
1986 is further amended by adding after section 45V (as 
added by this Act) the following new section: 
‘‘SEC. 
45W. 
MANUFACTURER 
CREDIT 
FOR 
HIGH-EFFI-
CIENCY 
HEAT 
PUMPS 
AND 
HEAT 
PUMP 
WATER HEATERS. 
‘‘(a) CREDIT AMOUNTS.— 
‘‘(1) IN GENERAL.—For purposes of section 38, 
the energy efficient heat pump credit determined 
under this section for any taxable year is an amount 
equal to the sum of the credit amounts determined 
under paragraph (2) for each type of qualified en-
ergy efficient heat pump produced by the taxpayer 
during the calendar year ending with or within the 
taxable year. 
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‘‘(2) CALCULATION
OF
CREDITS.—The credit 
amount determined for any type of qualified energy 
efficient appliance is— 
‘‘(A) the applicable amount determined 
under subsection (b) with respect to such type, 
multiplied by 
‘‘(B) the eligible production for such type 
under subsection (c). 
‘‘(b) APPLICABLE AMOUNT.—For purposes of sub-
section (a): 
‘‘(1) CONSUMER
HEAT
PUMP
WATER
HEAT-
ERS.—The applicable amount is $600 in the case of 
a consumer heat pump water heater that is manu-
factured in calendar years 2022 through 2030 and 
that has a Uniform Energy Factor of 3.3 or more 
for electric water heaters and 1.3 or more for gas 
water heaters. 
‘‘(2) COMMERCIAL HEAT PUMP WATER HEAT-
ERS.—The applicable amount is $600 in the case of 
a commercial heat pump water heater manufactured 
in calendar years 2022 through 2030 and that has 
a Coefficient of Performance of 3.0 or more for elec-
tric water heaters and 1.3 or more for gas water 
heaters. 
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‘‘(3) CONSUMER UNITARY HEAT PUMPS.—The 
applicable amount is $800 in the case of a consumer 
unitary heat pump that— 
‘‘(A) is manufactured in calendar years 
2022 through 2030, 
‘‘(B) in the case of an electric heat pump 
meets either— 
‘‘(i) the most recent requirements of 
the Energy Star Most Efficient Specifica-
tion promulgated by the United States En-
vironmental Protection Agency before the 
date of enactment of this section, or 
‘‘(ii) the most recent Cold Climate 
Air-Source Heat Pump Specification pro-
mulgated by Northeast Energy Efficiency 
Partnerships before the date of enactment 
of this section, and 
‘‘(C) in the case of a gas heat pump, has 
an Annual Fuel Utilization Efficiency of 140 
percent or more. 
‘‘(4) COMMERCIAL HEAT PUMPS.—The applica-
ble amount is $24 per thousand British Thermal 
Units of heating capacity measured at a 17 degree 
Fahrenheit ambient temperature in the case of a 
commercial heat pump that is manufactured in cal-
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endar years 2022 through 2030 and that has a Co-
efficient of Performance of 2.3 or more at a 17 de-
gree F ambient temperature for electric heat pumps, 
and 1.2 or more at a 17 degree F ambient tempera-
ture for gas heat pumps. 
‘‘(5) INDUSTRIAL HEAT PUMPS.—The applica-
ble amount is $36 per thousand British Thermal 
Units of heating capacity for heat pumps with a 
heating capacity of 2,400 thousand British Thermal 
Units or less and $18 per thousand British Thermal 
Units of heating capacity for heat pumps with a 
heating capacity above 2,400 thousand British Ther-
mal Units in the case of an industrial heat pump 
that is manufactured and installed in an industrial 
facility in calendar years 2022 through 2030 and 
that has a Coefficient of Performance of 2.0 or 
more. 
‘‘(c) ELIGIBLE PRODUCTION.—The eligible produc-
tion in a calendar year with respect to each type of energy 
efficient heat pump is— 
‘‘(1) the number of heat pumps of such type 
that are produced by the taxpayer in the United 
States during such calendar year, less 
‘‘(2) the average number of heat pumps of such 
type that were produced by the taxpayer (or any 
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predecessor) in the United States during the pre-
ceding 2-calendar year period. 
‘‘(d) TYPES OF ENERGY EFFICIENT HEAT PUMPS.— 
For purposes of this section, the types of energy efficient 
heat pumps are— 
‘‘(1) consumer heat pump water heaters de-
scribed in subsection (b)(1), 
‘‘(2) commercial heat pump water heaters de-
scribed in subsection (b)(2), 
‘‘(3) consumer unitary heat pumps described in 
subsection (b)(3), 
‘‘(4) commercial heat pumps described in sub-
section (b)(4), and 
‘‘(5) industrial heat pumps described in sub-
section (b)(5). 
‘‘(e) LIMITATIONS.— 
‘‘(1) AGGREGATE CREDIT AMOUNT ALLOWED.— 
The aggregate amount of credit allowed under sub-
section (a) with respect to a taxpayer for any tax-
able year shall not exceed $250,000,000, reduced by 
the amount of the credit allowed under subsection 
(a) to the taxpayer (or any predecessor) for all prior 
taxable years beginning after December 31, 2021. 
‘‘(2) 
LIMITATION
BASED
ON
GROSS
RE-
CEIPTS.—The credit allowed under subsection (a) 
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with respect to a taxpayer for the taxable year shall 
not exceed an amount equal to 4 percent of the aver-
age annual gross receipts of the taxpayer for the 3 
taxable years preceding the taxable year in which 
the credit is determined. 
‘‘(3) GROSS RECEIPTS.—For purposes of this 
subsection, the rules of paragraphs (2) and (3) of 
section 448(c) shall apply. 
‘‘(f) ADJUSTMENT
OF ENERGY EFFICIENCY CRI-
TERIA.—No later than December 31, 2022, and every two 
years thereafter, the Secretary, in consultation with the 
Secretary of Energy, shall review the efficiency levels in 
section (b) and revise these levels upward if necessary to 
include only the most efficient commercially available heat 
pumps of each type, while ensuring that at least three 
manufacturers are represented in each type across a range 
of product heating capacities. 
‘‘(g) TEST PROCEDURES.— 
‘‘(1) The Department of Energy shall develop 
test procedures to determine Coefficient of Perform-
ance for— 
‘‘(A) gas commercial heat pump water 
heaters, 
‘‘(B) gas commercial heat pumps, and 
‘‘(C) industrial heat pumps. 
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‘‘(2) Such test procedures shall build upon the 
foundation of relevant current American National 
Standard Institute and International Organization 
of Standard test procedures. 
‘‘(h) DEFINITIONS.—For purposes of this section: 
‘‘(1) QUALIFIED
ENERGY
EFFICIENT
HEAT 
PUMP.—The term ‘qualified energy efficient heat 
pump’ means— 
‘‘(A) any consumer heat pump water heat-
er described in subsection (b)(1), 
‘‘(B) any commercial heat pump water 
heater described in subsection (b)(2), 
‘‘(C) any consumer unitary heat pump de-
scribed in subsection (b)(3), 
‘‘(D) any commercial heat pump described 
in subsection (b)(4), and 
‘‘(E) any industrial heat pump described in 
subsection (b)(5). 
‘‘(2) CONSUMER
HEAT
PUMP
WATER
HEAT-
ER.—The term ‘consumer heat pump water heater’ 
means a water heater that uses a heat pump to heat 
water and has an electric input of 12 Kilowatt or 
less or a gas input of 75,000 British Thermal Units 
per hour or less, measured in accordance with appli-
cable Department of Energy test procedures. 
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‘‘(3) COMMERCIAL HEAT PUMP WATER HEAT-
ERS.—The term ‘commercial heat pump water heat-
er’ means a water heater that uses a heat pump to 
heat water and has an electric input of more than 
12 Kilowatt or a gas input of more than 75,000 
British Thermal Units per hour, measured in ac-
cordance with applicable Department of Energy test 
procedures. 
‘‘(4) CONSUMER
UNITARY
HEAT
PUMP.—The 
term ‘consumer unitary heat pump’ means a heat 
pump designed to provide space heating and cooling 
with a cooling capacity of 65,000 British Thermal 
Units per hour or less, measured in accordance with 
the applicable Department of Energy test proce-
dures. 
‘‘(5) COMMERCIAL
HEAT
PUMP.—The term 
‘commercial heat pump’ means a heat pump de-
signed to provide space heating and cooling with a 
cooling capacity of more than 65,000 British Ther-
mal Units per hour, measured in accordance with 
the applicable Department of Energy test proce-
dures. 
‘‘(6) INDUSTRIAL HEAT PUMP.—The term ‘in-
dustrial heat pump’ means a heat pump that up-
grades industrial waste heat to a higher temperature 
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such that the delivered heat is produced and sup-
plied to the facility more efficiently than conven-
tional heating methods, such as a steam or electric 
resistance boiler. 
‘‘(7) PRODUCED.—The term ‘produced’ in-
cludes manufactured. 
‘‘(8) UNIFORM
ENERGY
FACTOR.—The term 
‘Uniform Energy Factor’ is a metric used to meas-
ure the efficiency of consumer water heaters, with 
details specified in applicable Department of Energy 
test procedures. 
‘‘(9) COEFFICIENT
OF
PERFORMANCE.—The 
term ‘Coefficient of Performance’ means the ratio of 
heat output to energy input, with details specified in 
applicable Department of Energy test procedures. 
For gas commercial heat pump water heaters, until 
there is a Department of Energy test procedure, 
American National Standards Institute and Amer-
ican Society of Heating, Refrigerating and Air-Con-
ditioning Engineers Standard 118.1 shall be used. 
For gas commercial heat pumps, until there is a De-
partment of Energy test procedure, American Na-
tional Standards Standard Z21.40.4 shall be used. 
For industrial heat pumps, until there is a Depart-
ment of Energy test procedure, manufacturers may 
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use their own tests, provided they publicly post the 
test conditions and assumptions they used in devel-
oping their stated Coefficient of Performance values. 
‘‘(i) SPECIAL RULES.—For purposes of this section: 
‘‘(1) IN GENERAL.—Rules similar to the rules 
of subsections (c), (d), and (e) of section 52 shall 
apply. 
‘‘(2) CONTROLLED GROUP.— 
‘‘(A) IN GENERAL.—All persons treated as 
a single employer under subsection (a) or (b) of 
section 52 or subsection (m) or (o) of section 
414 shall be treated as a single producer. 
‘‘(B) INCLUSION
OF
FOREIGN
CORPORA-
TIONS.—For purposes of subparagraph (A), in 
applying subsections (a) and (b) of section 52 
to this section, section 1563 shall be applied 
without regard to subsection (b)(2)(C) thereof. 
‘‘(3) VERIFICATION.—No amount shall be al-
lowed as a credit under subsection (a) with respect 
to which the taxpayer has not submitted such infor-
mation or certification as the Secretary, in consulta-
tion with the Secretary of Energy, determines nec-
essary. 
‘‘(4) PRODUCTION IN UNITED STATES.—The re-
quirement for production in the United States in 
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section (c) does not take effect until January 1, 
2024.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
is further amended by adding after the item relating to 
section 45V the following new item: 
‘‘Sec. 45W. Manufacturer credit for high-efficiency heat pumps and heat pump 
water heaters.’’. 
SEC. 210. OTHER AUTHORIZATIONS OF APPROPRIATIONS. 
(a) AMENDMENT TO AMERICA COMPETES ACT.— 
Section 5012(o)(2) of the America COMPETES Act (42 
U.S.C. 16538(o)(2)) is amended— 
(1) in subparagraph (D), by striking ‘‘; and’’ 
and inserting ‘‘;’’; 
(2) in subparagraph (E), by striking ‘‘2013.’’ 
and inserting ‘‘2013;’’; and 
(3) by adding at the end the following: 
‘‘(F) $569,000,000 for fiscal year 2021; 
‘‘(G) $713,000,000 for fiscal year 2022; 
‘‘(H) $856,000,000 for fiscal year 2023; 
and 
‘‘(I) $1,000,000,000 for fiscal year 2024.’’. 
(b) REGIONAL INNOVATION MODELS.—There are au-
thorized to be appropriated to the Secretary for purposes 
of developing regional innovation models— 
(1) $100,000,000 for fiscal year 2021; 
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(2) $200,000,000 for fiscal year 2022; 
(3) $300,000,000 for fiscal year 2023; and 
(4) $500,000,000 for fiscal year 2024. 
(c) GRID MODERNIZATION.—There are authorized to 
be appropriated to the Secretary for purposes of research, 
development, demonstration, analysis, technology valida-
tion, market transformation, and technical assistance to 
support grid modernization— 
(1) $238,000,000 for fiscal year 2021; 
(2) $375,000,000 for fiscal year 2022; 
(3) $513,000,000 for fiscal year 2023; and 
(4) $650,000,000 for fiscal year 2024. 
(d) ADVANCED LAND-BASED AND OFFSHORE WIND 
POWER.—There are authorized to be appropriated to the 
Secretary for the purposes of research, development, dem-
onstration, analysis, technology validation, market trans-
formation, and technical assistance to support advanced 
land-based and offshore wind power— 
(1) $178,000,000 for fiscal year 2021; 
(2) $252,000,000 for fiscal year 2022; 
(3) $326,000,000 for fiscal year 2023; and 
(4) $400,000,000 for fiscal year 2024. 
(e) ADVANCED SOLAR POWER.—There are author-
ized to be appropriated to the Secretary for the purposes 
of research, development, demonstration, analysis, tech-
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nology validation, market transformation, and technical 
assistance to support advanced solar power— 
(1) $360,000,000 for fiscal year 2021; 
(2) $440,000,000 for fiscal year 2022; 
(3) $520,000,000 for fiscal year 2023; and 
(4) $600,000,000 for fiscal year 2024. 
(f) MECHANICAL, CHEMICAL, AND THERMAL STOR-
AGE TECHNOLOGY.—There are authorized to be appro-
priated to the Secretary for the purposes of research, de-
velopment, demonstration, analysis, technology validation, 
market transformation, and technical assistance to sup-
port mechanical, chemical, and thermal storage tech-
nology— 
(1) $150,000,000 for fiscal year 2021; 
(2) $150,000,000 for fiscal year 2022; 
(3) $150,000,000 for fiscal year 2023; and 
(4) $150,000,000 for fiscal year 2024. 
(g) BUILDINGS.—There are authorized to be appro-
priated to the Secretary for the purposes of research, de-
velopment, demonstration, analysis, technology validation, 
market transformation, and technical assistance to sup-
port technologies that improve the energy efficiency of 
building equipment, the building envelope, building con-
trols, and that improve information sharing between the 
building and the grid, which technologies may include en-
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(1) $70,000,000 is authorized for the Secretary 
to use each year to establish a supercritical en-
hanced geothermal system demonstration program; 
and 
(2) $30,000,000 is authorized for the Secretary 
to use each year in collaboration with the National 
Laboratories for supercritical enhanced geothermal 
systems research and development. 
TITLE III—EXISTING AND AD-
VANCED 
NUCLEAR 
POWER 
PLANTS 
SEC. 301. ZERO-EMISSIONS CREDIT PROGRAM. 
(a) ESTABLISHMENT.—Not later than 2 years after 
the date of enactment of this section, the Secretary shall 
establish a program to be known as the ‘‘Zero-Emissions 
Credit Program’’. 
(b) ISSUANCE OF CREDITS.—Not later than March 
1 of each calendar year beginning after the date on which 
the Zero-Emissions Credit Program is established, under 
the Zero-Emissions Credit Program the Secretary shall 
issue an amount of zero-emissions credits to each owner 
or operator of a qualified nuclear power plant in the quan-
tity that is equal to the amount of the megawatt hours 
of electricity sold by such owner or operator to an orga-
nized power market in the prior year. 
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(c) PAYMENT FOR RECEIPT OF CREDITS.— 
(1) IN GENERAL.—Except as provided in para-
graphs (2), (3), and (4), under the Zero-Emissions 
Credit Program the Secretary shall pay an owner or 
operator of a qualified nuclear power plant $13.25 
for each zero-emissions credit an owner or operator 
submits to the Secretary. 
(2) ADJUSTMENTS
FOR
INFLATION.—Each 
year, the Secretary shall adjust the amount to be 
paid under the Zero-Emissions Credit Program for 
each zero-emissions credit to account for the effects 
of inflation. 
(3) REDUCTION IN VALUE OF CREDIT.—If the 
price for the sale of electricity increases such that 
payments for zero-emissions credits are no longer 
needed to prevent the retirement of a qualified nu-
clear power plant, the Secretary shall reduce the 
amount to be paid for each zero-emissions credit for 
such qualifying nuclear power plant in accordance 
with such change in price. 
(4) OFFSET
FOR
VALUE
OF
CLEAN
ELEC-
TRICITY CREDITS.—The Secretary shall reduce the 
payment to a qualified nuclear power plant for a 
zero-emissions credit by the value of any clean elec-
tricity credits issued to the plant for the same quan-
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tity of megawatt hours pursuant to the Federal 
Clean Electricity Standard program established 
under section 611 of the Public Utility Regulatory 
Policies Act of 1978. 
(d) 
TERMINATION
DATE.—The 
Zero-Emissions 
Credit Program shall terminate on the date that is 5 years 
after the program effective date of the Federal Clean Elec-
tricity Standard established under section 611 of the Pub-
lic Utility Regulatory Policies Act of 1978. 
(e) DEFINITIONS.—In this section: 
(1) ORGANIZED
POWER
MARKET.—The term 
‘‘organized power market’’ means any market— 
(A) for the wholesale sale of electricity; 
and 
(B) that is controlled by a regional trans-
mission organization or an independent system 
operator as defined in section 3 of the Federal 
Power Act (16 U.S.C. 796). 
(2) QUALIFIED NUCLEAR POWER PLANT.— 
(A) IN
GENERAL.—The term ‘‘qualified 
nuclear power plant’’ means any nuclear power 
plant that the Secretary determines, based on 
an application submitted by such plant to the 
Secretary, is not financially viable or will other-
wise be required to retire if it does not receive 
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zero-emissions credits under the Zero-Emissions 
Credit Program. 
(B) EXCLUSION.—The term ‘‘qualified nu-
clear power plant’’ does not include a nuclear 
power plant that receives a tax credit under sec-
tion 48 of the Internal Revenue Code of 1986. 
(3) ZERO-EMISSIONS CREDIT.—The term ‘‘zero- 
emissions credit’’ means a credit issued by the Sec-
retary under the Zero-Emissions Credit Program 
that represents 1 megawatt of electricity sold by the 
owner or operator of a qualified nuclear power plant 
to an organized power market. 
(f) RULEMAKING.—Not later than one year after the 
date of enactment of this section, the Secretary shall final-
ize rules for— 
(1) the application and decision process for 
qualified nuclear power plants; and 
(2) the schedule and process for issuance of 
credits and periodic review and adjustment of 
issuances. 
SEC. 302. INVESTMENT TAX CREDIT FOR NUCLEAR ENERGY 
PROPERTY. 
(a) IN GENERAL.—Section 48(a)(3)(A) of the Inter-
nal Revenue Code of 1986 is amended— 
(1) in clause (vi), by striking ‘‘or’’; 
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(2) in clause (vii), by inserting ‘‘or’’ at the end; 
and 
(3) by adding at the end the following new 
clause: 
‘‘(viii) qualified nuclear energy prop-
erty,’’. 
(b) ELIGIBLE FOR 30-PERCENT CREDIT.—Section 
48(a)(2)(A)(i) of such Code is amended by striking ‘‘and’’ 
in subclause (III) and by adding at the end the following 
new subclause: 
‘‘(V) energy property described in 
paragraph (3)(A)(viii) but only with 
respect to property placed in service 
before January 1, 2024, and’’. 
(c) QUALIFIED NUCLEAR ENERGY PROPERTY.—Sec-
tion 48(c) of such Code is amended by adding at the end 
the following new paragraph: 
‘‘(5) QUALIFIED
NUCLEAR
ENERGY
PROP-
ERTY.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
nuclear energy property’ means any amounts 
paid or incurred for the refueling of, and any 
other expenditures described in section 263(a) 
with respect to, a qualifying nuclear power 
plant. 
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‘‘(B) 
QUALIFYING
NUCLEAR
POWER 
PLANT.—The term ‘qualifying nuclear power 
plant’ means a nuclear power plant which— 
‘‘(i) submitted an application for li-
cense renewal to the Nuclear Regulatory 
Commission in accordance with part 54 of 
title 10, Code of Federal Regulations, be-
fore January 1, 2026, or 
‘‘(ii) certified to the Secretary (at 
such time and in such form and in such 
manner as the Secretary prescribes) that 
such plant will submit an application for li-
cense renewal to the Nuclear Regulatory 
Commission in accordance with part 54 of 
title 10, Code of Federal Regulations, be-
fore January 1, 2026. 
‘‘(C) SPECIAL RULES.— 
‘‘(i) BASIS.—For purposes of sub-
section (a), the cumulative amounts paid 
or incurred by the taxpayer during the tax-
able year with respect to a qualifying nu-
clear power plant, which are properly 
chargeable to capital account, shall be 
treated as the basis of the qualified nuclear 
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100 
energy property placed in service for that 
taxable year. 
‘‘(ii) PLACED IN SERVICE.—For pur-
poses of subsection (a), qualified nuclear 
energy property shall be treated as having 
been placed in service on the last day of 
the taxable year in which the taxpayer 
pays or incurs such amounts described in 
clause (i). 
‘‘(iii) 
RECAPTURE.—The 
Secretary 
shall, by regulations, provide for recap-
turing the benefit of any credit allowable 
under subsection (a) to any qualifying nu-
clear power plant which made a certifi-
cation pursuant to subparagraph (B) but 
does not file an application of license re-
newal to the Nuclear Regulatory Commis-
sion in accordance with part 54 of title 10, 
Code of Federal Regulations, before Janu-
ary 1, 2026.’’. 
(d) PHASEOUT OF 30-PERCENT CREDIT RATE FOR 
NUCLEAR ENERGY PROPERTY.—Section 48(a) of such 
Code is amended by adding at the end the following new 
paragraph: 
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101 
‘‘(7) PHASEOUT FOR QUALIFIED NUCLEAR EN-
ERGY PROPERTY.—In the case of qualified nuclear 
energy property, the energy percentage determined 
under paragraph (2) shall be equal to— 
‘‘(A) in the case of any property placed in 
service after December 31, 2023, and before 
January 1, 2025, 26 percent, and 
‘‘(B) in the case of any property placed in 
service after December 31, 2022, and before 
January 1, 2026, 22 percent.’’. 
(e) COORDINATION WITH CREDIT FOR PRODUCTION 
FROM ADVANCED NUCLEAR POWER FACILITIES.—The 
last sentence of section 48(a)(3) of such Code is amended 
by inserting ‘‘or 45J’’ after ‘‘section 45’’. 
(f) TRANSFER OF CREDIT BY CERTAIN PUBLIC EN-
TITIES.— 
(1) IN GENERAL.—Section 48 of such Code is 
amended by adding at the end the following new 
subsection: 
‘‘(e) SPECIAL RULE FOR QUALIFIED NUCLEAR EN-
ERGY PROPERTY.— 
‘‘(1) IN GENERAL.—In the case of any qualified 
nuclear energy property, if, with respect to a credit 
under subsection (a) for any taxable year— 
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102 
‘‘(A) the taxpayer would be a qualified 
public entity, and 
‘‘(B) such entity elects the application of 
this subsection for such taxable year with re-
spect to all (or any portion specified in such 
election) of such credit, the eligible project part-
ner specified in such election (and not the 
qualified public entity) shall be treated as the 
taxpayer for purposes of this title with respect 
to such credit (or such portion thereof). 
‘‘(2) DEFINITIONS.—For purposes of this sub-
section: 
‘‘(A) QUALIFIED
PUBLIC
ENTITY.—The 
term ‘qualified public entity’ means— 
‘‘(i) a Federal, State, or local govern-
ment entity, or any political subdivision, 
agency, or instrumentality thereof, 
‘‘(ii) a mutual or cooperative electric 
company described in section 501(c)(12) or 
section 1381(a)(2), or 
‘‘(iii) a not-for-profit electric utility 
which has or had received a loan or loan 
guarantee under the Rural Electrification 
Act of 1936. 
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103 
‘‘(B) ELIGIBLE PROJECT PARTNER.—The 
term ‘eligible project partner’ means— 
‘‘(i) any person responsible for oper-
ating, maintaining, or repairing the quali-
fying nuclear power plant to which the 
credit under subsection (a) relates, 
‘‘(ii) any person who participates in 
the provision of the nuclear steam supply 
system to the qualifying nuclear power 
plant to which the credit under subsection 
(a) relates, 
‘‘(iii) any person who participates in 
the provision of nuclear fuel to the quali-
fying nuclear power plant to which the 
credit under subsection (a) relates, or 
‘‘(iv) any person who has an owner-
ship interest in such facility. 
‘‘(3) SPECIAL RULES.— 
‘‘(A) APPLICATION TO PARTNERSHIPS.—In 
the case of a credit under subsection (a) which 
is determined with respect to qualified nuclear 
energy property at the partnership level— 
‘‘(i) for purposes of paragraph (1)(A), 
a qualified public entity shall be treated as 
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104 
the taxpayer with respect to such entity’s 
distributive share of such credit, and 
‘‘(ii) the term ‘eligible project partner’ 
shall include any partner of the partner-
ship. 
‘‘(B) TAXABLE
YEAR
IN
WHICH
CREDIT 
TAKEN
INTO
ACCOUNT.—In the case of any 
credit (or portion thereof) with respect to which 
an election is made under subsection (e), such 
credit shall be taken into account in the first 
taxable year of the eligible project partner end-
ing with, or after, the qualified public entity’s 
taxable year with respect to which the credit 
was determined. 
‘‘(C) TREATMENT
OF
TRANSFER
UNDER 
PRIVATE USE RULES.—For purposes of section 
141(b)(1), any benefit derived by an eligible 
project partner in connection with an election 
under this subsection shall not be taken into ac-
count as a private business use.’’. 
(2) SPECIAL RULE FOR PROCEEDS OF TRANS-
FERS
FOR
MUTUAL
OR
COOPERATIVE
ELECTRIC 
COMPANIES.—Section 501(c)(12) of such Code is 
amended by adding at the end the following new 
subparagraph: 
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105 
‘‘(I) In the case of a mutual or cooperative 
electric company described in this paragraph or 
an organization described in section 1381(a)(2), 
income received or accrued in connection with 
an election under section 48(e) shall be treated 
as an amount collected from members for the 
sole purpose of meeting losses and expenses.’’. 
(g) 
CONFORMING
AMENDMENT.—Section 
48(a)(2)(A) of such Code is amended by striking ‘‘para-
graph (6)’’ and inserting ‘‘paragraphs (6) and (7)’’. 
(h) EFFECTIVE DATE.—The amendments made by 
this section shall apply to periods after December 31, 
2019, in taxable years ending after such date, under rules 
similar to the rules of section 48(m) of the Internal Rev-
enue Code of 1986 (as in effect on the day before the en-
actment of the Revenue Reconciliation Act of 1990). 
SEC. 303. EXPANDING FEDERAL CLEAN ELECTRICITY PUR-
CHASING REQUIREMENTS. 
(a) AMENDMENTS TO THE FEDERAL PURCHASE RE-
QUIREMENTS OF THE ENERGY POLICY ACT OF 2005.— 
Section 203 of the Energy Policy Act of 2005 (42 U.S.C. 
15852) is amended— 
(1) in subsection (a), by striking ‘‘, the fol-
lowing amounts shall be renewable energy:’’ and in-
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106 
serting ‘‘, such amount shall be made up of the fol-
lowing:’’; 
(2) in subsection (a)(1), by inserting ‘‘shall be 
renewable energy’’ after ‘‘2009’’; 
(3) in subsection (a)(2), by inserting ‘‘shall be 
renewable energy’’ after ‘‘2012’’; 
(4) in subsection (a)(3), by striking ‘‘7.5 per-
cent in fiscal year 2013 and each fiscal year there-
after.’’ and inserting ‘‘7.5 percent in fiscal years 
2013 through 2019 shall be renewable energy.’’; 
(5) in subsection (a), by adding at the end the 
following: 
‘‘(4) Not less than 35 percent in fiscal year 
2020 and each year thereafter shall be clean elec-
tricity.’’; 
(6) in subsection (b), by adding at the end the 
following: 
‘‘(3) CLEAN
ELECTRICITY.—The term ‘clean 
electricity’ means— 
‘‘(A) renewable energy; 
‘‘(B) any electric energy generated by a 
nuclear power plant; and 
‘‘(C) the percentage of electric energy gen-
erated by a power plant that equals the per-
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107 
centage of carbon dioxide emissions of such 
plant that are captured and sequestered.’’; 
(7) in subsection (c), by striking ‘‘renewable en-
ergy’’ and inserting ‘‘clean electricity’’ in each place 
it occurs; 
(8) by redesignating subsection (d) as sub-
section (e); and 
(9) by inserting after subsection (c) the fol-
lowing: 
‘‘(d) POWER PURCHASE AGREEMENT.—For the pur-
poses of this section, the Secretary may enter into a power 
purchase agreement for as much as all of the electricity 
output of a nuclear power plant for the duration of the 
operational life of such plant if such plant supplies elec-
tricity for purposes of national security or mission-critical 
activities.’’. 
(b) AMENDMENTS TO ENERGY POLICIES OF THE DE-
PARTMENT
OF DEFENSE
AND
THE DEPARTMENT
OF 
HOMELAND SECURITY.—Subtitle B of title VI of the En-
ergy Policy Act of 2005 is amended by adding at the end 
the following: 
‘‘SEC. 639A. LONG-TERM NUCLEAR POWER PURCHASE 
AGREEMENT PILOT PROGRAM. 
‘‘(a) ESTABLISHMENT.—The Secretary shall estab-
lish and carry out a pilot program for long-term power 
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108 
purchase agreements for electricity generated by nuclear 
power. 
‘‘(b) REQUIREMENTS.—In carrying out the pilot pro-
gram established under subsection (a), the Secretary 
shall— 
‘‘(1) consult and coordinate with the heads of 
other Federal agencies that may benefit from pur-
chasing nuclear power for a period of longer than 10 
years, including— 
‘‘(A) the Secretary of Defense; 
‘‘(B) the Administrator of General Serv-
ices; and 
‘‘(C) the Secretary of Homeland Security; 
and 
‘‘(2) not later than 5 years after the date of en-
actment of this section, enter into at least 1 power 
purchase agreement with the owner or operator of a 
commercial nuclear power plant for up to 30 years. 
‘‘(c) PRIORITY.—In carrying out the pilot program 
established under subsection (a), the Secretary shall 
prioritize entering into a power purchase agreement with 
the owner or operator of a plant that uses first-of-a-kind 
or early deployment nuclear technologies that can provide 
reliable and resilient power to high-value assets for na-
tional security purposes or other purposes, which the Sec-
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109 
retary determines are in the national interest, especially 
in remote off-grid scenarios or grid-connected scenarios 
that can provide capabilities commonly known as 
‘islanding power capabilities’ during an emergency sce-
nario. 
‘‘(d) EFFECT ON RATES.—A power purchase agree-
ment entered into under this section may be at a rate that 
is higher than the average market rate if the power pur-
chase agreement fulfills an applicable consideration de-
scribed in subsection (c).’’. 
(c) TABLE OF CONTENTS.—The table of contents of 
the Energy Policy Act of 2005 (Public Law 109–58; 119 
Stat. 594) is amended by inserting after the item relating 
to section 639 the following: 
‘‘Sec. 639A. Long-term nuclear power purchase agreement pilot program.’’. 
(d) AUTHORIZATION OF LONG-TERM POWER PUR-
CHASE AGREEMENTS.—Section 501(b)(1) of title 40, 
United States Code, is amended by striking subparagraph 
(B) and inserting the following: 
‘‘(B) PUBLIC UTILITY CONTRACTS.— 
‘‘(i) TERM.— 
‘‘(I) IN
GENERAL.—A contract 
under this paragraph to purchase 
electricity service from a public utility 
may be for a period of not more than 
40 years. 
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110 
‘‘(II) OTHER
PUBLIC
UTILITY 
SERVICES.—A contract under this 
paragraph for a public utility service 
other than a service described in sub-
clause (I) may be for a period of not 
more than 10 years. 
‘‘(ii) COSTS.—The cost of a contract 
under this paragraph for any fiscal year 
may only be paid from the appropriations 
for that fiscal year.’’. 
SEC. 304. MODERNIZING THE NUCLEAR REGULATORY COM-
MISSION. 
(a) REDUCING THE ADMINISTRATIVE BURDEN OF 
LICENSING ACTIVITIES FOR NEW DESIGNS OF ADVANCED 
NUCLEAR REACTORS.— 
(1) REPORT.—Not later than 90 days after the 
date of enactment of this section, the Commission 
shall submit to the Committee on Energy and Com-
merce of the House of Representatives and the Com-
mittee on Energy and Natural Resources of the Sen-
ate a report that recommends how to improve the 
processes, procedures, and, if appropriate, regula-
tions of the Commission with respect to licensing, 
certification, and approval of advanced nuclear reac-
tor designs. 
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111 
(2) REQUIRED
RECOMMENDATIONS.—The re-
port submitted under paragraph (1) shall include 
recommendations to— 
(A) improve all Commission actions with 
respect to licensing, certification, and approval 
of advanced nuclear reactor designs, including 
actions to meet the Commission’s obligations 
under the National Environmental Policy Act of 
1969 (42 U.S.C. 4231 et seq.); 
(B) emphasize risk-informed and perform-
ance-based regulatory approaches; and 
(C) enable the Commission to finalize its 
review of an application to approve the design 
of an advanced nuclear reactor in no more than 
two years. 
(b) STUDY ON ELIMINATION OF FOREIGN LICENSING 
RESTRICTIONS.—Not later than 18 months after the date 
of enactment of this section, the Comptroller General, in 
consultation with the Secretary, shall submit to Congress 
a report containing the results of a study on the feasibility 
and implications of repealing restrictions under sections 
103 d. and 104 d. of the Atomic Energy Act of 1954 (42 
U.S.C. 2011 et seq.). 
(c) STUDY ON THE IMPACT OF THE ELIMINATION OF 
MANDATORY HEARINGS FOR UNCONTESTED LICENSING 
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143 
‘‘(A) to the Commission, the implementa-
tion of some or all of the program established 
under paragraph (1); and 
‘‘(B) to appropriate entities, the tracking 
of clean electricity credits. 
‘‘(5) BANKING OF CLEAN ELECTRICITY CRED-
ITS.—Clean electricity credits issued under sub-
section (d) shall be valid for the compliance period 
in which the clean electricity credit is issued or in 
any subsequent compliance period. 
‘‘(d) ISSUANCE OF CLEAN ELECTRICITY CREDITS.— 
‘‘(1) IN
GENERAL.—For each calendar year, 
starting with the year of the program effective date, 
the Secretary shall issue clean electricity credits to 
each electricity generator in the United States that 
has sold electricity and has an annual carbon inten-
sity of less than 0.825 metric tons per megawatt- 
hour. 
‘‘(2) DETERMINATION OF CREDITS ISSUED.— 
The number of clean electricity credits issued under 
paragraph (1) shall be equal to the product of— 
‘‘(A) the number of megawatt-hours of 
electric energy sold from the electricity gener-
ator; and 
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