(iv) PARTICIPATION.—Participation in 
the advisory council does not preclude 
members from also serving in a community 
benefits group described in paragraph (6). 
(2) GUIDELINES.— 
(A) REQUEST
FOR
INFORMATION.—Not 
later than 1 month after the date of enactment 
of this Act, the Secretary of Energy shall pub-
lish a request for information (to remain open 
for a period of not less than 3 months) solic-
iting information from individuals living in ex-
isting or legacy iron or steel-making commu-
nities and individuals with experience negoti-
ating community benefits agreements on cri-
teria that should be included in guidelines for 
community benefits plans and guidelines com-
munity benefits agreements under this sub-
section. 
(B) PUBLICATION.—The Secretary of En-
ergy shall develop and, not later than 5 months 
after the date of enactment of this Act, publish 
on the platform established under this sub-
section guidelines and required inclusions for 
community benefits plans and guidelines and 
required inclusions for community benefits 
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agreements under this subsection. In developing 
such guidelines and required inclusions, the 
Secretary shall take into consideration any in-
formation solicited pursuant to subparagraph 
(A), guidance submitted by the advisory council 
under paragraph (1)(A), and any relevant infor-
mation from existing community benefits plan 
processes of the Department of Energy, includ-
ing for the Industrial Demonstrations Program 
of the Department of Energy. 
(C) UPDATES.—The Secretary of Energy 
may update the guidelines published under sub-
paragraph (B) as the Secretary determines ap-
propriate. 
(3) REQUIRED
INCLUSIONS.—A community 
benefits plan required to be included in an applica-
tion under this section shall include the following: 
(A) A stakeholder analysis that— 
(i) identifies any community that is 
located in an area that is within a 25 mile 
radius of the applicable eligible facility, 
and members of such a community, that 
may be impacted by the applicable pro-
posed project or by operation of the appli-
cable eligible facility, including impacts on 
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social, economic, and environmental condi-
tions, including cumulative effects, and im-
pacts on members of such a community 
who are traditionally excluded from deci-
sion-making processes; and 
(ii) examines potential reasons for 
such exclusion, including community his-
tory and dynamics, including social, cul-
tural, environmental, economic, and polit-
ical landscapes. 
(B) Information on prior and ongoing ef-
forts by the applicant to engage local stake-
holder groups who may be impacted by the ap-
plicable proposed project or by operation of the 
applicable eligible facility. 
(C) A description of existing concerns im-
pacting communities described in subparagraph 
(A) that have already been identified through 
input to the advisory council and other govern-
ment tools or surveys that enable government 
agencies to understand the economic, social, en-
vironmental, and labor circumstances of these 
communities, including the Climate and Eco-
nomic Justice Screening Tool, academic re-
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search, media reports, citizen enforcement ac-
tions for permit violations, and public hearings. 
(D) A description of potential concerns im-
pacting communities described in subparagraph 
(A) emanating from the applicable proposed 
project or operation of the applicable eligible fa-
cility. 
(E) A description of benefits that the ap-
plicable eligible entity can deliver to commu-
nities described in subparagraph (A) that re-
flect the eligible entity’s understanding of such 
existing concerns and such potential concerns. 
(F) A strategy for— 
(i) sharing the descriptions under sub-
paragraphs (C), (D), and (E); 
(ii) disseminating the community ben-
efits plan; engaging with communities de-
scribed in subparagraph (A); and 
(iii) incorporating such communities’ 
feedback into any applicable community 
benefits agreement. 
(G) A strategy for reporting and verifying 
progress on delivering the benefits described in 
subparagraph (E) with communities described 
in subparagraph (A). 
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(H) A description of the resources that the 
eligible entity plans to provide to ensure the full 
participation of communities described in sub-
paragraph (A) in discussions with the eligible 
entity, including participation of members of 
such communities who are traditionally ex-
cluded from decision-making processes, includ-
ing providing facts regarding the potential im-
pacts of the proposed project and operation of 
the applicable eligible facility after completion 
of such project on such communities, monetary 
resources to compensate for members of the ap-
plicable community benefits group described in 
paragraph (6) for their time, experts who can 
interpret the information shared by the eligible 
entity and represent such communities’ perspec-
tives, and other support measures to facilitate 
engagement, such as providing childcare and 
food during discussions. 
(I) A commitment to, and a plan for how 
such eligible entity will, cover the costs of train-
ing and skills and knowledge acquisition for 
community liaisons focused on air quality moni-
toring and reduction of air pollution. 
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(J) A commitment to, and a plan for how 
such eligible entity will, regularly and actively 
engage with frontline communities and leaders 
to determine and develop legally binding com-
munity benefit agreements and report progress 
on its execution. 
(K) Any additional information the Sec-
retary of Energy determines appropriate based 
on the guidance submitted by the advisory 
council pursuant to paragraph (1). 
(4) CONSIDERATION.—The strength of a com-
munity benefits plan submitted pursuant to this sec-
tion, as determined by the Department of Energy 
Merit Reviewer process, shall constitute at least 20 
percent of the graded criteria in determining wheth-
er to award covered financial assistance under this 
section. 
(5) PLATFORM.— 
(A) ESTABLISHMENT.—The Secretary of 
Energy shall establish a platform to host the 
text of each— 
(i) community benefits plan submitted 
by an eligible entity awarded covered fi-
nancial assistance under this section; 
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(ii) memorandum of understanding 
described in paragraph (6); and 
(iii) final community benefits agree-
ment entered into pursuant to paragraph 
(7). 
(B) REDACTED INFORMATION.—The Sec-
retary of Energy may, on a case-by-case basis, 
redact confidential business information from 
the platform established under subparagraph 
(A). 
(6) MEMORANDUM OF UNDERSTANDING.— 
(A) IN
GENERAL.—Not later than 6 
months after initial receipt of covered financial 
assistance under this section, an eligible entity 
awarded such covered financial assistance shall 
seek to enter into a memorandum of under-
standing with a community benefits group de-
scribed in subparagraph (C). 
(B) INCLUSIONS.—A memorandum of un-
derstanding under this paragraph shall include 
a commitment to enter into a community bene-
fits agreement in accordance with paragraph 
(7). 
(C) MEMBERSHIP OF COMMUNITY BENE-
FITS GROUP.—A community benefits group de-
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scribed in this subparagraph shall include indi-
viduals who represent the communities identi-
fied in paragraph (3)(A), including members of 
such communities who are traditionally ex-
cluded from decision-making processes. 
(D) RECRUITMENT.—An eligible entity 
awarded covered financial assistance under this 
section shall recruit individuals described in 
subparagraph (C) to serve on a community ben-
efits group described in such subparagraph and 
publicize the opportunity for additional stake-
holders to self-identify and self-nominate to the 
community benefits group. 
(E) COMPENSATION.—Members of a com-
munity benefits group described in subpara-
graph (C) shall be remunerated for their time 
and receive resources in accordance with the eli-
gible entity’s community benefits plan. 
(7) COMMUNITY BENEFITS AGREEMENT.— 
(A) IN GENERAL.—Not later than one year 
after entering into a memorandum of under-
standing with a community benefits group in 
accordance with paragraph (6), an eligible enti-
ty awarded covered financial assistance under 
this section shall seek to enter into a legally 
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binding community benefits agreement with 
such community benefits group. 
(B) COMPENSATION AND EXPENSES.— 
(i) COMPENSATION.—Members of the 
community benefits group participating in 
negotiations of a community benefits 
agreement shall be remunerated for their 
time and receive resources that facilitate 
their engagement. Failure to enter into a 
community benefits agreement pursuant to 
this subsection shall not eliminate the obli-
gation of an eligible entity to reimburse 
the applicable community benefits group 
and any other member of the impacted 
community who is participating in such ne-
gotiations for their time engaging with the 
eligible entity. 
(ii) 
LEGAL
REPRESENTATION.—A 
community benefits group described under 
subparagraph (A) shall select its own legal 
representation for all matters relating to a 
community benefits agreement, which will 
be paid for by the applicable eligible entity 
described in such subparagraph. 
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(C) MEDIATION REQUIRED.—Any dispute 
that cannot be resolved within a reasonable pe-
riod of time (as determined by the Secretary of 
Energy) between a community benefits group 
and eligible entity under this section shall be re-
solved through mediation with a mediator se-
lected by the community benefits group. 
(D) COMMUNITY
LETTER.—If a commu-
nity benefits agreement is not entered into by 
the deadline under subparagraph (A), the appli-
cable eligible entity shall be required to submit 
to the Secretary of Energy a letter from the ap-
plicable community benefits group ascertaining 
good faith effort by the eligible entity in order 
for the eligible entity to remain eligible to re-
ceive covered financial assistance and extend 
the time allowed for negotiations with commu-
nity. In order for currently operating iron and 
steel facilities to remain eligible for covered fi-
nancial assistance, the Administrator of the En-
vironmental Protection Agency shall addition-
ally confirm through the Environmental Protec-
tion Agency’s modeling the emissions and co- 
pollution reduction potential stipulated in this 
Act and the award decision. 
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(E) CONSEQUENCES FOR FAILURE TO AD-
HERE TO AGREEMENT.—Failure to enter into a 
community benefits agreement by the deadline 
under subparagraph (A) and to submit a letter 
pursuant to subparagraph (D), or failure to 
abide by a community benefits agreement en-
tered into pursuant to this subsection, shall re-
sult in the suspension of funding under this 
section. 
(i) DENIAL OF DOUBLE BENEFIT.— 
(1) Section 48C(f) of the Internal Revenue 
Code of 1986 is amended to read as follows: 
‘‘(f) DENIAL OF DOUBLE BENEFIT.—A credit shall 
not be allowed under this section for any qualified invest-
ment— 
‘‘(1) with respect to which any covered financial 
assistance was awarded under section 101 of the 
Steel Modernization Act of 2024, or 
‘‘(2) for which a credit is allowed under section 
48, 48A, 48B, 48E, 45Q, or 45V.’’. 
(2) EFFECTIVE DATE.—The amendment made 
by this subsection shall apply to property placed in 
service after the date of the enactment of this Act. 
(j) 
LIMITATION.—Covered 
financial 
Assistance 
awarded under this section may not be used for the con-
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struction, installation, use, or maintenance of equipment 
involved in the capture or sequestration of carbon oxides. 
(k) TERMINATION OF AWARDS.—The Secretary of 
Energy may not award covered financial assistance under 
this section after December 31, 2032. 
(l) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out this section 
$10,000,000,000. 
SEC. 102. CONTRACT FOR DIFFERENCES PILOT PROGRAM. 
(a) ESTABLISHMENT OF PILOT PROGRAM.—The Sec-
retary of Energy shall establish a pilot program to enter 
into contracts, on a competitive basis, with entities for 
payment of costs associated with the production or pur-
chase of near-zero emissions intensity steel. 
(b) SELECTION.— 
(1) MINIMUM
NUMBER.—Not later than 10 
years after the date of enactment of this Act, the 
Secretary shall enter into at least 2 contracts under 
the pilot program established under this section, 
with each contract term for a period of no longer 
than 5 years. 
(2) DIRECT
REDUCED
IRON
FURNACE.—At 
least one of the contracts entered into under para-
graph (1) shall be for payment of costs associated 
with the production or purchase of near-zero emis-
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sions intensity steel that is produced using a direct 
reduced iron furnace. 
(c) AMOUNT.—The amount of a payment, with re-
spect to near-zero emissions intensity steel described in 
subsection (a), to an entity with which the Secretary of 
Energy has entered into a contract under the pilot pro-
gram established under subsection (a) shall be— 
(1) the cost of such near-zero emissions inten-
sity steel that is produced or purchased; minus 
(2) the applicable fair market value, as deter-
mined by the Secretary of Energy, to produce or 
purchase an equal quantity of conventional steel. 
(d) WAGES AND PROJECT LABOR AGREEMENT RE-
QUIREMENTS.—An eligible entity that enters into a con-
tract under the pilot program established under this sec-
tion shall— 
(1) comply with the requirements under section 
101(c)(1)(J); and 
(2) with respect to any eligible facility for which 
the total estimated cost of the construction contract 
is $25,000,000 or more, comply with the require-
ments under section 101(c)(1)(K). 
(e) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated $500,000,000 to carry out 
this section. 
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SEC. 103. NEAR-ZERO EMISSIONS INTENSITY IRON PRODUC-
TION CREDIT. 
(a) IN GENERAL.—Subpart D of subchapter A of 
chapter 1 of the Internal Revenue Code of 1986 is amend-
ed by adding at the end the following new section: 
‘‘SEC. 45BB. NEAR-ZERO EMISSIONS INTENSITY IRON PRO-
DUCTION CREDIT. 
‘‘(a) IN GENERAL.—For purposes of section 38, in 
the case of an eligible taxpayer, the near-zero emissions 
intensity iron production credit for any taxable year is an 
amount equal to $89 per ton of near-zero emissions inten-
sity iron produced by the taxpayer at an eligible facility 
during such taxable year. 
‘‘(b) LIMITATION.—The amount determined under 
subsection (a) with respect to iron produced at an eligible 
facility with respect to which a credit was allowed under 
section 38 by reason of subsection (a) for 10 prior taxable 
years shall be zero. 
‘‘(c) DEFINITIONS.—For purposes of this section— 
‘‘(1) ELIGIBLE TAXPAYER.—The term ‘eligible 
taxpayer’ means a taxpayer that— 
‘‘(A) is not under the influence, control, or 
ownership of a foreign entity of concern (as de-
fined in section 108 of the Steel Modernization 
Act of 2024), 
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‘‘(B) has, with respect to any eligible facil-
ity with respect to which a credit is determined 
under section 38 by reason of this section for 
a taxable year, fulfilled the following require-
ments at all times during such taxable year: 
‘‘(i) The requirements described in 
paragraphs (1), (5), and (6) of section 
101(d) of the Steel Modernization Act of 
2024. 
‘‘(ii) All requirements made applicable 
to any entity described in section 101(g) of 
the Steel Modernization Act of 2024. 
‘‘(2) ELIGIBLE
FACILITY; NEAR-ZERO
EMIS-
SIONS INTENSITY IRON.—The terms ‘eligible facility’ 
and ‘near-zero emissions intensity iron’ have the 
meanings given such terms in section 108 of the 
Steel Modernization Act of 2024. 
‘‘(d) NO DOUBLE BENEFIT.—The amount deter-
mined under subsection (a) with respect to any near-zero 
emissions intensity iron which was produced pursuant to 
a contract established under section 102 of the Steel Mod-
ernization Act of 2024 shall be zero. 
‘‘(e) INFLATION ADJUSTMENT.—In the case of any 
taxable year beginning in a calendar year after 2024, there 
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shall be substituted for the dollar amount in subsection 
(a) an amount equal to the product of— 
‘‘(1) such dollar amount, multiplied by 
‘‘(2) the inflation adjustment factor for such 
calendar year determined under section 43(b)(3)(B) 
for such calendar year, determined by substituting 
‘2023’ for ‘1990’. 
‘‘(f) SUNSET.—This section shall not apply to taxable 
years beginning after December 31, 2045.’’. 
(b) CREDIT ALLOWED AS PART OF GENERAL BUSI-
NESS CREDIT.—Section 38(b) of such Code is amended 
by striking ‘‘plus’’ at the end of paragraph (40), by strik-
ing the period at the end of paragraph (41) and inserting 
‘‘, and’’, and by adding at the end the following new para-
graph: 
‘‘(42) in the case of an eligible taxpayer (as de-
fined in section 45BB(c)), the near-zero emissions 
intensity iron production credit determined under 
section 45BB(a).’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart D of subchapter A of chapter 1 of such Code 
is amended by adding at the end the following new item: 
‘‘Sec. 45BB. Near-zero emissions intensity iron production credit.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to iron produced after the date 
of the enactment of this Act. 
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SEC. 104. GREEN IRON AND STEEL FACILITY ENERGY IN-
VESTMENT CREDITS. 
(a) IN GENERAL.—Subpart E of subchapter A of 
chapter 1 of the Internal Revenue Code of 1986 is amend-
ed by adding at the end the following new sections: 
‘‘SEC. 48F. ON-SITE ZERO-EMISSION ENERGY INVESTMENT 
CREDIT. 
‘‘(a) IN GENERAL.—In the case of an eligible tax-
payer, for purposes of section 46, the on-site zero-emission 
energy investment credit for any taxable year is an 
amount equal to 10 percent of the qualified investment 
for such taxable year. 
‘‘(b) QUALIFIED INVESTMENT.— 
‘‘(1) IN
GENERAL.—The qualified investment 
with respect to any qualified facility for any taxable 
year is the sum of— 
‘‘(A) the basis of any property placed in 
service by the taxpayer during the taxable 
year— 
‘‘(i) which is— 
‘‘(I) tangible personal property, 
or 
‘‘(II) other tangible property (not 
including a building or its structural 
components), but only if such prop-
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erty is used as an integral part of the 
qualified facility, 
‘‘(ii) with respect to which deprecia-
tion (or amortization in lieu of deprecia-
tion) is allowable, and 
‘‘(iii)(I) the construction, reconstruc-
tion, or erection of which is completed by 
the taxpayer, or 
‘‘(II) which is acquired by the tax-
payer if the original use of such property 
commences with the taxpayer, and 
‘‘(B) the basis of any qualified property 
placed in service by the taxpayer during such 
taxable year which is part of a facility described 
in subsection (c). 
‘‘(2) CERTAIN QUALIFIED PROGRESS EXPENDI-
TURES RULES MADE APPLICABLE.—Rules similar to 
the rules of subsections (c)(4) and (d) of section 46 
(as in effect on the day before the enactment of the 
Revenue Reconciliation Act of 1990) shall apply for 
purposes of this section. 
‘‘(3) LIMITATIONS.— 
‘‘(A) CREDIT
LIMITED
TO
ALLOCATED 
AMOUNT.—The amount which is treated as the 
qualified investment for all taxable years with 
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respect to any qualifying advanced energy 
project shall not exceed the amount designated 
by the Secretary as eligible for the credit under 
this section. 
‘‘(B) LIMITATION ON AGGREGATE FINAN-
CIAL ASSISTANCE.—The amount which is treat-
ed as the qualified investment for all taxable 
year with respect to any qualified facility 
project shall not exceed the amount that is 
equal to— 
‘‘(i) $500,000,000, minus 
‘‘(ii) the sum of— 
‘‘(I) any financial assistance pro-
vided to such project pursuant to the 
Steel Modernization Act of 2024, 
‘‘(II) any credits allowed for any 
taxable year relating to such project 
under this section, plus 
‘‘(III) any credits allowed for any 
taxable year relating to such project 
under section 48G. 
‘‘(c) QUALIFIED FACILITY PROJECT.—In this sec-
tion, the term ‘qualified facility project’ means a project, 
any portion of the qualified investment of which is cer-
tified by the Secretary under subsection (e) as eligible for 
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a credit under this section, which re-equips, expands, or 
establishes a zero-carbon electricity or heat generating or 
storage facility which is located on-site with an eligible fa-
cility (as such term is defined in section 108 of the Steel 
Modernization Act of 2024). 
‘‘(d) ELIGIBLE TAXPAYER.—In this section, the term 
‘eligible taxpayer’ means a taxpayer that— 
‘‘(1) is not under the influence, control, or own-
ership of a foreign entity of concern (as defined in 
section 108 of the Steel Modernization Act of 2024); 
and 
‘‘(2) has, with respect to any qualified facility 
project, met the requirements described in section 
101(d)(5) and (6) of the Steel Modernization Act of 
2024. 
‘‘(e) ON-SITE ZERO-EMISSION ENERGY PROJECT 
PROGRAM.— 
‘‘(1) ESTABLISHMENT.— 
‘‘(A) IN
GENERAL.—Not later than 180 
days after the date of enactment of this section, 
the Secretary shall establish an on-site zero- 
emission energy project program to consider 
and award certifications for qualified invest-
ments eligible for credits under this section to 
qualified facility project sponsors. 
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‘‘(B) LIMITATION.—The total amount of 
credits that may be allocated under the pro-
gram shall not exceed $500,000,000. 
‘‘(2) CERTIFICATION.— 
‘‘(A) APPLICATION PERIOD.—Each appli-
cant for certification under this paragraph shall 
submit an application containing such informa-
tion as the Secretary may require during the 2- 
year period beginning on the date the Secretary 
establishes the program under paragraph (1). 
‘‘(B) TIME TO MEET CRITERIA FOR CER-
TIFICATION.—Each applicant for certification 
shall have 1 year from the date of acceptance 
by the Secretary of the application during 
which to provide to the Secretary evidence that 
the requirements of the certification have been 
met. 
‘‘(C) PERIOD OF ISSUANCE.—An applicant 
which receives a certification shall have 3 years 
from the date of issuance of the certification in 
order to place the project in service and if such 
project is not placed in service by that time pe-
riod, then the certification shall no longer be 
valid. 
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‘‘(3) SELECTION
CRITERIA.—In determining 
which qualified facility projects to certify under this 
section, the Secretary— 
‘‘(A) shall take into consideration only 
those projects where there is a reasonable ex-
pectation of commercial viability, and 
‘‘(B) shall take into consideration which 
projects— 
‘‘(i) will provide the greatest domestic 
job creation (both direct and indirect) dur-
ing the credit period, 
‘‘(ii) will provide the greatest net im-
pact in avoiding or reducing air pollutants 
or anthropogenic emissions of greenhouse 
gases, 
‘‘(iii) have the greatest potential for 
technological innovation and commercial 
deployment, 
‘‘(iv) have the lowest levelized cost of 
generated or stored energy, or 
‘‘(v) of measured reduction in energy 
consumption or greenhouse gas emission 
(based on costs of the full supply chain), 
‘‘(C) have the shortest project time from 
certification to completion, and 
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‘‘(D) shall take into consideration only 
those projects that have met the requirements 
described in section 101(d)(5) and (6) of the 
Steel Modernization Act of 2024. 
‘‘(4) REVIEW AND REDISTRIBUTION.— 
‘‘(A) REVIEW.—Not later than 4 years 
after the date of enactment of this section, the 
Secretary shall review the credits allocated 
under this section as of such date. 
‘‘(B) 
REDISTRIBUTION.—The 
Secretary 
may reallocate credits awarded under this sec-
tion if the Secretary determines that— 
‘‘(i) there is an insufficient quantity 
of qualifying applications for certification 
pending at the time of the review, or 
‘‘(ii) any certification made pursuant 
to paragraph (2) has been revoked pursu-
ant to paragraph (2)(B) because the 
project subject to the certification has been 
delayed as a result of third party opposi-
tion or litigation to the proposed project. 
‘‘(C) REALLOCATION.—If the Secretary de-
termines that credits under this section are 
available for reallocation pursuant to the re-
quirements set forth in paragraph (2), the Sec-
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retary is authorized to conduct an additional 
program for applications for certification. 
‘‘(5) DISCLOSURE OF ALLOCATIONS.—The Sec-
retary shall, upon making a certification under this 
subsection, publicly disclose the identity of the appli-
cant and the amount of the credit with respect to 
such applicant. 
‘‘(f) INFLATION ADJUSTMENT.—In the case of any 
taxable year beginning in a calendar year after 2024, there 
shall be substituted for the dollar amount in subsection 
(b)(3)(B)(i) an amount equal to the product of— 
‘‘(1) such dollar amount, multiplied by 
‘‘(2) the inflation adjustment factor for such 
calendar year determined under section 43(b)(3)(B) 
for such calendar year, determined by substituting 
‘2023’ for ‘1990’. 
‘‘(g) SUNSET.—This section shall not apply to tax-
able years beginning after December 31, 2045. 
‘‘SEC. 48G. IRON AND STEEL GREEN ENERGY AND GRID 
SYSTEM UPGRADE INVESTMENT CREDIT. 
‘‘(a) IN GENERAL.—In the case of an eligible tax-
payer, for purposes of section 46, the iron and steel green 
energy and grid system upgrade investment credit for any 
taxable year is an amount equal to 10 percent of the quali-
fied investment for such taxable year. 
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‘‘(b) DEFINITIONS.—For purposes of this section— 
‘‘(1) ELIGIBLE TAXPAYER.—In this section, the 
term ‘eligible taxpayer’ means a taxpayer that— 
‘‘(A) is not under the influence, control, or 
ownership of a foreign entity of concern (as de-
fined in section 108 of the Steel Modernization 
Act of 2024), and 
‘‘(B) has, with respect to any qualified 
interconnection property and qualified property, 
met the requirements described in section 
101(d)(5) and (6) of the Steel Modernization 
Act of 2024. 
‘‘(2) QUALIFIED
INVESTMENT.—The qualified 
investment for any taxable year is the sum of— 
‘‘(A) the amount of any expenditures 
which are paid or incurred by the taxpayer for 
qualified interconnection property— 
‘‘(i) placed in service during the tax-
able year of the taxpayer, and 
‘‘(ii) properly chargeable to capital ac-
count of the taxpayer, and 
‘‘(B) the basis of any qualified property 
placed in service by the taxpayer during such 
taxable year which is part of a qualified facility. 
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‘‘(3) 
QUALIFIED
INTERCONNECTION
PROP-
ERTY.—The term ‘qualified interconnection prop-
erty’ means qualified interconnection property (as 
such term is defined in section 48(a)(8)(B)) which 
is necessary to transmit energy to an eligible facility. 
‘‘(4) QUALIFIED PROPERTY.—The term ‘quali-
fied property’ has the meaning given such term in 
section 48E(b)(2). 
‘‘(5) QUALIFIED FACILITY.—The term ‘quali-
fied facility’ means a qualified facility (as defined in 
section 48E(B)(3) except that such paragraph shall 
be applied without regard to subparagraph (C) 
thereof) which sells energy attribution certificates to 
an eligible facility. 
‘‘(6) ELIGIBLE
FACILITY.—The term ‘eligible 
facility’ has the meaning given such term in section 
108 of the Steel Modernization Act of 2024. 
‘‘(c) SUNSET.—This section shall not apply to taxable 
years beginning after December 31, 2045.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 46 of such Code is amended by 
striking ‘‘and’’ at the end of paragraph (6), by strik-
ing the period at the end of paragraph (7) and in-
serting a comma, and by adding at the end the fol-
lowing new paragraphs: 
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‘‘(8) the on-site zero-emission energy invest-
ment credit, and 
‘‘(9) the iron and steel green energy and grid 
system upgrade investment credit.’’. 
(2) Section 49(a)(1)(C) of such Code is amend-
ed by striking ‘‘and’’ at the end of clause (vii), by 
striking the period at the end of clause (viii) and in-
serting a comma, and by adding at the end the fol-
lowing new clauses: 
‘‘(ix) the basis of any qualified prop-
erty which is part of a qualified facility 
under section 48F, and 
‘‘(x) the basis of any qualified inter-
connection property and any qualified 
property which is part of a qualified facil-
ity under section 48G.’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart E of subchapter A of chapter 1 of such Code 
is amended by inserting after the item relating to section 
48E the following new items: 
‘‘Sec. 48F. On-site zero-emission energy investment credit. 
‘‘Sec. 48G. Iron and steel green energy and grid system upgrade investment 
credit.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
the date of the enactment of this Act. 
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SEC. 105. STUDY AND REPORT ON DEMAND GENERATION. 
The Secretary of Energy shall conduct a study, and 
publish a report on the findings of such study on a publicly 
accessible website, on opportunities for new Federal, 
State, and local policies, regulations, and other measures 
to help stimulate demand for near-zero emissions intensity 
iron and near-zero emissions intensity steel, including de-
mand related to shipbuilding, railroads, and offshore wind 
electricity generation. 
SEC. 106. REPORT ON STRATEGY TO BRING ZERO-GREEN-
HOUSE GAS EMISSIONS ELECTRICITY TO THE 
ELECTRIC GRID. 
Not later than 1 year after the date of enactment 
of this Act, the Secretary of Energy shall submit to Con-
gress a report describing— 
(1) a whole of Government strategy to— 
(A) increase the supply of zero-greenhouse 
gas emissions electricity on the electric grid; 
(B) improve electricity transmission; 
(C) upgrade regional energy distribution 
systems; and 
(D) ensure industrial entities can afford 
zero-greenhouse gas emissions electricity; 
(2) the amount of steel, aluminum, and other 
materials produced in the United States that would 
be needed to implement such strategy; and 
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(3) additional investments and policies rec-
ommended to be able to finish and fabricate mate-
rials described in paragraph (2) domestically. 
SEC. 107. PROHIBITION. 
None of the funds authorized to be appropriated or 
otherwise made available pursuant to this Act may be 
made available— 
(1) to construct, modify, retrofit, or otherwise 
be used for a facility that is not located in the 
United States; or 
(2) to any entity that is partly or wholly owned 
by— 
(A) the Government of the People’s Repub-
lic of China; or 
(B) a foreign entity of concern. 
SEC. 108. DEFINITIONS. 
In this title: 
(1) 
ADVANCED
INDUSTRIAL
IRON
TECH-
NOLOGY.—The term ‘‘advanced industrial iron tech-
nology’’ means a technology related to iron produc-
tion that is directly involved in an industrial process, 
and designed to reduce, or results in a reduction of, 
greenhouse gas emissions, as determined by the Sec-
retary of Energy. 
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(2) ADVANCED
INDUSTRIAL
STEEL
TECH-
NOLOGY.—The term ‘‘advanced industrial steel tech-
nology’’ means a technology related to steel produc-
tion that is directly involved in an industrial process, 
and designed to reduce, or results in a reduction of, 
greenhouse gas emissions, as determined by the Sec-
retary of Energy. 
(3) CLEAN HYDROGEN.— 
(A) IN GENERAL.—The term ‘‘clean hydro-
gen’’ means hydrogen that is produced through 
a process that results in a lifecycle greenhouse 
gas emissions rate of not greater than 0.45 
kilograms of carbon dioxide equivalent per kilo-
gram of hydrogen. 
(B) LIFECYCLE GREENHOUSE GAS EMIS-
SIONS.—For purposes of subparagraph (A), the 
term ‘‘lifecycle greenhouse gas emissions’’ shall 
only include emissions through the point of pro-
duction, as determined under the most recent 
Greenhouse gases, Regulated Emissions, and 
Energy use in Transportation model (commonly 
referred to as the ‘‘GREET model’’) developed 
by Argonne National Laboratory, or a successor 
model (as determined by the Secretary of En-
ergy). 
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(4) COVERED
FINANCIAL
ASSISTANCE.—The 
term ‘‘covered financial assistance’’ includes a grant, 
rebate, direct loan, cooperative agreement, low- to 
no-interest loans, and a loan guarantee. 
(5) EARLY-STAGE.—The term ‘‘early-stage’’ 
means, with respect to a technology, that the tech-
nology has not yet been proven viable at scale. 
(6) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’ means the owner or operator of an eligible facil-
ity. 
(7) ELIGIBLE FACILITY.—The term ‘‘eligible fa-
cility’’ means a domestic, non-Federal, nonpower in-
dustrial or manufacturing facility engaged in pro-
duction processes or research and development for 
iron, steel, steel mill products, or other industrial 
processes related to iron or steel-making, as deter-
mined by the Secretary of Energy. 
(8) ENVIRONMENTAL
JUSTICE
COMMUNITY.— 
The term ‘‘environmental justice community’’ means 
a community with significant representation of com-
munities of color, low-income communities, or Tribal 
and indigenous communities, that experiences, or is 
at risk of experiencing, higher or more adverse 
human health or environmental effects than other 
communities. 
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(9) EXISTING OR LEGACY IRON OR STEEL-MAK-
ING COMMUNITY.—The term ‘‘existing or legacy iron 
or steel-making community’’ means— 
(A) an area that is within a 25 mile radius 
of an iron or steel production facility— 
(i) that is producing iron or steel as 
of the date of enactment of this Act; or 
(ii) that has produced iron or steel 
anytime since January 1, 1985; or 
(B) any community within a 25 mile ra-
dius of a location in which metallurgical coke, 
or metallurgical coal destined to be metallur-
gical coke, has been produced, mined, or proc-
essed at any time since January 1, 1985. 
(10) FOREIGN
ENTITY
OF
CONCERN.—The 
term ‘‘foreign entity of concern’’ has the meaning 
given such term in section 40207(a)(5) of the Infra-
structure Investment and Jobs Act (42 U.S.C. 
18741(a)(5)). 
(11) 
FRONTLINE
COMMUNITY.—The 
term 
‘‘frontline community’’ means— 
(A) a low-income community; 
(B) an environmental justice community; 
or 
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(C) a disadvantaged community (as de-
fined by the Justice40 Initiative established 
under section 223 of Executive Order 14008, ti-
tled ‘‘Tackling the Climate Crisis at Home and 
Abroad’’). 
(12) MINE-TO-METAL BASIS.—The term ‘‘mine- 
to-metal basis’’ means the greenhouse gas account-
ing rule under criterion 10.4, ‘‘Determination of 
site-level GHG emissions for the purpose of report-
ing GHG emissions intensity when producing crude 
steel for determining a site’s greenhouse gas emis-
sions’’, under Responsible Steel International Pro-
duction Standard Version 2.1, effective from May 
21, 2024. 
(13) NEAR-ZERO EMISSIONS INTENSITY IRON.— 
The term ‘‘near-zero emissions intensity iron’’ 
means iron that has an emissions intensity of 0.35 
tons of carbon dioxide equivalent per ton of iron or 
less, with greenhouse gas emissions determined on a 
mine-to-metal basis. 
(14) 
NEAR-ZERO
EMISSIONS
INTENSITY 
STEEL.—The term ‘‘near-zero emissions intensity 
steel’’ means steel that has an emissions intensity 
that is equal to or less than progress level 4 emis-
sions intensity that is determined, using a sliding 
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scale of emissions intensity based on scrape share of 
metallics input, in accordance with criterion 10.6 of 
Responsible Steel International Production Standard 
Version 2.1, effective from May 21, 2024, and with 
greenhouse gas emissions determined on a mine-to- 
metal basis. 
TITLE II—TARIFF ON DIRTY 
IMPORTED STEEL 
SEC. 201. CALCULATION OF EMISSIONS INTENSITY. 
(a) DOMESTIC EMISSIONS INTENSITY REPORT.—Not 
later than June 30, 2026, and every 2 years thereafter, 
the United States International Trade Commission shall 
transmit to the President and publish a report with re-
spect to the following: 
(1) The average greenhouse gas emissions in-
tensity of domestic iron and steel production, ex-
pressed in tons of CO2-e per ton of iron or steel, re-
spectively. 
(2) The average greenhouse gas emissions in-
tensity of the domestic manufacture of covered iron 
and steel product categories and finished goods pro-
duced using covered iron and steel product cat-
egories, expressed in tons of CO2-e per ton of iron 
or steel, respectively. 
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(3) An estimate the 90th emissions intensity 
percentiles for all domestically manufactured re-
ported product categories. 
(b) INTERNATIONAL
EMISSIONS
INTENSITY
RE-
PORT.— 
(1) IN
GENERAL.—No later than June 30, 
2026, and every 2 years thereafter, the United 
States International Trade Commission shall trans-
mit to the President and publish a report with re-
spect to the emissions intensity of the manufacture 
of covered iron and steel products in all foreign mar-
kets from which the United States imported in ex-
cess of $200,000,000 of iron and steel products, in-
cluding finished goods, in any 1 of the preceding 5 
years. The emissions intensity with respect to such 
covered products shall be determined based on— 
(A) the emissions intensity of the general 
economy of the country of origin of covered 
products as compared to the emissions intensity 
of the United States economy; or 
(B) if the Commission determines that 
transparent, verifiable, and reliable information 
is available with respect to the iron and steel in-
dustry in the country of origin of covered prod-
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