I 
117TH CONGRESS 
1ST SESSION H. R. 4153 
To advance clean power technology development and use through innovation 
and clean energy standards, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 24, 2021 
Mr. MCKINLEY (for himself, Mr. SCHRADER, Ms. TENNEY, and Mr. COSTA) 
introduced the following bill; which was referred to the Committee on En-
ergy and Commerce, and in addition to the Committees on Ways and 
Means, Science, Space, and Technology, Transportation and Infrastruc-
ture, Oversight and Reform, and Financial Services, 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 con-
cerned 
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. 
This Act may be cited as the ‘‘Clean Energy Future 
Through Innovation Act of 2021’’. 
SEC. 2. DEFINITIONS; TABLE OF CONTENTS. 
(a) DEFINITIONS.—In this Act: 
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(1) COMMISSION.—The term ‘‘Commission’’ 
means the Federal Energy Regulatory Commission. 
(2) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Energy. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title. 
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. 101. Fossil energy objectives. 
Sec. 102. Carbon capture technologies. 
Sec. 103. Carbon storage validation and testing. 
Sec. 104. Carbon utilization. 
Sec. 105. Advanced energy systems. 
Subtitle B—Deployment of Carbon Capture, Utilization, and Storage With 
Commercial-Scale Electricity Generation Facilities 
Sec. 111. 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. 121. Enhancement of carbon dioxide sequestration credit. 
Sec. 122. Reform of loan guarantee program. 
Sec. 123. Private activity bonds for carbon dioxide capture facilities. 
Sec. 124. Extension of publicly traded partnership ownership structure. 
Sec. 125. Production tax credit for certain electricity generation using carbon 
capture utilization and storage. 
Sec. 126. Elective payment of credit. 
Sec. 127. Allowance of the carbon oxide sequestration credit against the base 
erosion minimum tax. 
Sec. 128. Modification of merchant banking investment regulation. 
Subtitle D—Support for Carbon Dioxide Transportation and Sequestration 
Infrastructure 
Sec. 131. Facilities for carbon dioxide transportation and sequestration. 
Sec. 132. Carbon dioxide sequestration utilities. 
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. 
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Sec. 203. Updating manufactured 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. Authorization of appropriations for loan guarantees for advanced nu-
clear facilities. 
Sec. 307. Expanding the production tax credit for nuclear power. 
TITLE IV—CLEAN ELECTRICITY STANDARD 
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 V—MISCELLANEOUS 
Sec. 501. Additional requirements. 
Sec. 502. Utilization of qualified apprentices by construction contractors. 
Sec. 503. Requirements applicable to tax incentive programs. 
TITLE I—CARBON CAPTURE, 
UTILIZATION, AND STORAGE 
Subtitle 
A—Research, 
Develop-
ment, and Demonstration for 
Carbon 
Capture, 
Utilization, 
and Storage Technologies 
SEC. 101. FOSSIL ENERGY OBJECTIVES. 
Section 961 of the Energy Policy Act of 2005 (42 
U.S.C. 16291) is amended— 
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(1) in subsection (a)(2), by adding at the end 
the following subparagraph: 
‘‘(M) Preventing, predicting, monitoring, 
and mitigating the unintended leaking of car-
bon dioxide or other fossil fuel-related emissions 
into the atmosphere.’’; and 
(2) by amending subsection (b) to read as fol-
lows: 
‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary to carry 
out fossil energy research, development, demonstration, 
and commercial application activities, including activities 
authorized under this subtitle, $2,200,000,000 for each of 
fiscal years 2022 through 2031.’’. 
SEC. 102. CARBON CAPTURE TECHNOLOGIES. 
Section 962 of the Energy Policy Act of 2005 (42 
U.S.C. 16292) is amended— 
(1) in subsection (e)— 
(A) in paragraph (2)— 
(i) by striking ‘‘and’’ at the end of 
subparagraph (B); 
(ii) by striking the period at the end 
of subparagraph (C) and inserting ‘‘; and’’; 
and 
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(C) by redesignating paragraph (7) as 
paragraph (8), and inserting after paragraph 
(6) the following: 
‘‘(7) COST SHARING.—The Secretary shall re-
quire cost sharing under this subsection in accord-
ance with section 988(b).’’; and 
(2) by adding at the end the following: 
‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary to carry 
out this section $600,000,000 for each of fiscal years 2022 
through 2031.’’. 
SEC. 103. CARBON STORAGE VALIDATION AND TESTING. 
Section 963 of the Energy Policy Act of 2005 (42 
U.S.C. 16293) is amended— 
(1) in subsection (b), by adding at the end the 
following: 
‘‘(4) FEDERAL DATA COLLECTION.—The Sec-
retary, in coordination with other Federal agencies 
including the United States Geological Survey, shall 
continue and expand ongoing Federal data collection 
and analysis activities related to carbon dioxide stor-
age, economics, and spatial relationships on a local 
and regional scale, in coordination with State and 
regional entities.’’; and 
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(2) by amending subsection (g) to read as fol-
lows: 
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary to carry 
out this section— 
‘‘(1) $200,000,000 for fiscal year 2021; and 
‘‘(2) $250,000,000 for each of fiscal years 2022 
through 2031.’’. 
SEC. 104. CARBON UTILIZATION. 
Section 969A(d) of the Energy Policy Act of 2005 
(42 U.S.C. 16298a(d)) is amended to read as follows: 
‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary to carry 
out this section— 
‘‘(1) $54,000,000 for fiscal year 2021; and 
‘‘(2) $75,000,000 for each of fiscal years 2022 
through 2031.’’. 
SEC. 105. ADVANCED ENERGY SYSTEMS. 
(a) 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. 969E. ADVANCED ENERGY SYSTEMS. 
‘‘(a) IN GENERAL.—The Secretary shall carry out a 
program of research, development, demonstration, and 
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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) Supercritical carbon dioxide, with an em-
phasis on developing directly fired and indirectly 
fired cycles in the next 10 years. 
‘‘(2) Advanced combustion systems, including 
oxy-combustion systems and chemical looping. 
‘‘(3) Gasification systems to enable carbon cap-
ture, improve efficiency, and reduce capital and op-
erating costs. 
‘‘(4) Thermal cycling with ramping or rapid 
black start capabilities that do not compromise effi-
ciency or environmental performance. 
‘‘(5) Small-scale and modular technologies with 
reduced carbon dioxide outputs or carbon capture 
that can support incremental power generation ca-
pacity needs. 
‘‘(6) Turbines, boilers, fuel cells, or other sys-
tems that utilize hydrogen or ammonia derived from 
coal or natural gas to make electricity. 
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‘‘(7) Systems that remove 98 percent or more 
of the carbon dioxide from the emissions of a power 
plant. 
‘‘(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. 
‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary to carry 
out this section $1,275,000,000 for each of fiscal years 
2022 through 2031.’’. 
(b) TECHNICAL AMENDMENT.—The table of contents 
for the Energy Policy Act of 2005 (Public Law 109–58; 
119 Stat. 600) is amended by adding at the end of the 
items relating to subtitle F of title IX the following: 
‘‘Sec. 969E. Advanced energy systems.’’. 
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Subtitle B—Deployment of Carbon 
Capture, Utilization, and Stor-
age 
With 
Commercial-Scale 
Electricity Generation Facilities 
SEC. 111. 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 support the deployment 
and use of carbon capture, utilization, and storage at eligi-
ble power systems by entering into contracts for dif-
ferences with owners or operators of eligible power sys-
tems to provide price certainty for the sale of the elec-
tricity generated by, or carbon dioxide captured by, such 
eligible power systems to third parties. 
‘‘(b) LIMITATIONS.—The Secretary may not enter 
into contracts for differences under subsection (a)— 
‘‘(1) with a term of more than 30 years; 
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‘‘(2) for the output of eligible power systems 
with a cumulative electricity generating capacity of 
more than 11 gigawatts; and 
‘‘(3) in a cumulative amount projected to have 
a value exceeding $10,000,000,000. 
‘‘(c) APPLICATION.— 
‘‘(1) IN GENERAL.—The owner or operator of 
an eligible power system seeking to enter into a con-
tract for differences under subsection (a) shall sub-
mit 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. 
‘‘(d) PRIORITIZATION.—In implementing subsection 
(a), the Secretary shall prioritize supporting— 
‘‘(1) the use of carbon capture, utilization, and 
storage at eligible power systems covering diverse 
fossil fuel types and technologies, including first-of- 
a-kind technology for carbon capture, utilization, 
and storage capacity; and 
‘‘(2) eligible power systems with at least 5.5 
gigawatts of cumulative electricity generating capac-
ity that will be in operation by 2030, and ensure 
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that the remaining eligible power systems receiving 
support will be under construction by not later than 
2030. 
‘‘(e) DEFINITIONS.—In this section: 
‘‘(1) POWER SYSTEM.—The term ‘power sys-
tem’ means a commercial-scale electricity generating 
unit that utilizes fossil fuels to generate electricity 
that is provided 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 to the atmos-
phere; 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) CLERICAL AMENDMENT.—The table of contents 
for the Energy Policy Act of 2005 is amended by adding 
after the item relating to section 417 the following: 
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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. 121. ENHANCEMENT OF CARBON DIOXIDE SEQUES-
TRATION CREDIT. 
(a) EXTENSION
OF
CREDIT
PERIOD.—Section 
45Q(a) of the Internal Revenue Code of 1986 is amended 
by striking ‘‘12-year’’ each place it appears 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, 2026’’ and inserting 
‘‘January 1, 2036’’. 
(c) ENHANCEMENT OF CREDIT VALUE.— 
(1) Section 45Q(b)(1)(A)(ii)(I) is amended by 
striking ‘‘$50’’ and inserting ‘‘$85’’. 
(2) Section 45Q(b)(1)(A)(ii)(II) is amended by 
striking ‘‘$35’’ and inserting ‘‘$70’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to carbon dioxide captured after 
December 31, 2020. 
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SEC. 122. 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 
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 2021, 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 
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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 
than requiring the borrower to pay some or all of 
the cost of the guarantee under section 1702(b).’’. 
SEC. 123. 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 subsections: 
‘‘(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. 
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‘‘(2) DEFINITIONS.—For purposes of this sub-
section— 
‘‘(A) ELIGIBLE
COMPONENT.—The term 
‘eligible component’ means, with respect to any 
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 
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created as a result of any of the following 
processes: 
‘‘(I) Fuel combustion for elec-
tricity generation or other purposes. 
‘‘(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, 
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‘‘(i) IN GENERAL.—The capture and 
storage percentage shall be an amount, ex-
pressed as a percentage, equal to the 
quotient of— 
‘‘(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 
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only on such specific sources of emissions 
or portions thereof. 
‘‘(o) OTHER REQUIREMENTS.—(1) An issue shall not 
be treated as an issue under subsection (a) unless each 
entity that receives some or all of the proceeds from the 
issue for construction, alteration or repair work agrees 
that such work shall be performed in accordance with the 
requirements of subchapter IV of chapter 31 of title 40, 
United States Code. 
‘‘(2) With respect to enforcement of the requirements 
in paragraph (1), rules similar to rules of section 503(c) 
of the Clean Energy Future Through Innovation Act of 
2021 shall be applied by substituting ‘issuer’ for ‘tax-
payer’.’’. 
(c) VOLUME CAP.—Section 146(g)(4) of such Code 
is amended by striking ‘‘paragraph (11) of section 142(a) 
(relating to high-speed intercity rail facilities)’’ and insert-
ing ‘‘paragraph (11) or paragraph (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-
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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. 124. 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’’, 
(2) by striking the comma at the end and in-
serting a period, and 
(3) by adding at the end the following: 
‘‘(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-
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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— 
‘‘(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). 
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‘‘(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 used as provided in para-
graph (7). 
‘‘(v) The sale of any good or service 
from any facility (other than a power gen-
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 paragraphs: 
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‘‘(6) DISPOSAL AND UTILIZATION OF CAPTURED 
CARBON DIOXIDE.—For purposes of clauses (iii)(II) 
and (iv) of paragraph (1)(E), carbon dioxide is dis-
posed of or used 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), 
‘‘(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. 
‘‘(7) OTHER REQUIREMENTS.—(A) Income and 
gains under subsection (d)(1)(E) shall not be treated 
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as ‘‘qualifying income’’ under this section unless the 
publicly traded partnership provides assurances to 
the Secretary that any construction, alteration, or 
repair work associated with such income and gains 
shall be performed in accordance with the require-
ments of subchapter IV of chapter 31 of title 40, 
United States Code. 
‘‘(B) With respect to enforcement of the re-
quirements in subparagraph (A), rules similar to 
rules of section 503(c) of the Clean Energy Future 
Through Innovation Act of 2021 shall be applied by 
substituting ‘publicly traded partnership’ for ‘tax-
payer’.’’. 
(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. 125. 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: 
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‘‘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— 
‘‘(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, 
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‘‘(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 
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 
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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. 
‘‘(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. 
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‘‘(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 
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 produced 
and sold after the date of the enactment of this Act. 
SEC. 126. ELECTIVE PAYMENT OF CREDIT. 
(a) Subchapter B of chapter 65 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new section: 
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‘‘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. 
‘‘(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. 
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‘‘(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-
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). 
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‘‘(6) SPECIAL RULE FOR MUTUAL OR COOPERA-
TIVE ELECTRIC COMPANIES.—In the case of a mu-
tual or cooperative electric company or an organiza-
tion described in section 501(c)(12) or section 
1381(a)(2), any income received or accrued in con-
nection with the credit under this section shall be 
treated as an amount collected from members for 
the sole purpose of meeting losses and expenses. 
‘‘(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.’’. 
(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. 6431. Elective payment of credits related to carbon oxide sequestration.’’. 
SEC. 127. ALLOWANCE OF THE CARBON OXIDE SEQUESTRA-
TION CREDIT AGAINST THE BASE EROSION 
MINIMUM TAX. 
(a) IN GENERAL.—Section 59A(b) of the Internal 
Revenue Code of 1986 is amended— 
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(1) in paragraph (1)(B)(ii)(I), by inserting 
‘‘and the carbon dioxide sequestration credit deter-
mined under section 45Q’’ after ‘‘section 41(a)’’, 
and 
(2) in paragraph (1)(B)(i), by inserting ‘‘(other 
than the credit allowed under section 38 for the tax-
able year which is properly allocable to the credit for 
carbon oxide sequestration determined under section 
45Q)’’ after ‘‘credits allowed under this chapter’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall take effect as if included in section 
41119 of the Bipartisan Budget Act of 2018. 
SEC. 128. MODIFICATION OF MERCHANT BANKING INVEST-
MENT REGULATION. 
(a) EXTENDED HOLDING PERIOD FOR CARBON CAP-
TURE PROJECTS.—Section 4(c) of the Bank Holding 
Company Act of 1956 (12 U.S.C. 1843(c)) is amended 
by inserting after paragraph (14) the following new para-
graph: 
‘‘(15) shares owned directly or indirectly in a 
company that is the person to whom the credit for 
carbon oxide sequestration in section 45Q of the In-
ternal Revenue Code of 1986 is attributable pursu-
ant to subsection (f)(3) of such section, but such 
shares shall be disposed of within a period of time 
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that equals the sum of the number of years in sub-
section (a)(3)(A) of such section and the number of 
years in the recapture period as defined in such sec-
tion or regulations or other guidance prescribed 
under such section.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2020. 
Subtitle D—Support for Carbon Di-
oxide Transportation and Se-
questration Infrastructure 
SEC. 131. FACILITIES FOR CARBON DIOXIDE TRANSPOR-
TATION AND SEQUESTRATION. 
(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: 
‘‘SEC. 419. SECURING GEOLOGIC RESERVOIRS FOR STOR-
AGE OF CARBON DIOXIDE. 
‘‘(a) IN GENERAL.—The Secretary shall carry out a 
program to— 
‘‘(1) identify geological formations that are ca-
pable 
of 
sequestering, 
cumulatively, 
at 
least 
250,000,000 tons of carbon dioxide with a target 
cost of less than $10 per ton; 
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‘‘(2) assess the cost of developing and operating 
carbon dioxide sequestration facilities at the geologi-
cal formations identified under paragraph (1); and 
‘‘(3) support the development of such carbon di-
oxide sequestration facilities by providing grants or 
other appropriate financial assistance to carbon di-
oxide sequestration facility developers to— 
‘‘(A) secure property rights that are nec-
essary to enable carbon dioxide sequestration in 
such geologic formations; and 
‘‘(B) obtain necessary permits and ap-
proval to enable carbon dioxide sequestration 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 costs in each of the regions covered by the 
regional carbon sequestration partnerships established by 
the Secretary. 
‘‘(c) APPLICATION.—An entity seeking a grant or 
other appropriate financial assistance provided under sub-
section (a)(3) shall submit to the Secretary an application 
at such time and in such manner as the Secretary may 
require. 
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‘‘(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). 
‘‘SEC. 420. CARBON DIOXIDE SEQUESTRATION INFRA-
STRUCTURE DEVELOPMENT. 
‘‘(a) IN GENERAL.—The Secretary shall carry out 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; 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 
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) PRIORITY.—The Secretary shall prioritize pro-
viding grants under subsection (a)(1) to support pipeline 
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infrastructure that is of significant length and significant 
throughput capacity. 
‘‘(d) COST SHARING.—The Secretary shall consider 
the grants provided under subsection (a) to be subject to 
the cost share requirement for demonstration and com-
mercial application activities under section 988(c). 
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary to carry 
out this section and section 419 $2,000,000,000 for each 
of fiscal years 2022 through 2031.’’. 
(b) CLERICAL 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. 420. Carbon dioxide sequestration infrastructure development.’’. 
SEC. 132. 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-
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. 
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(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 carbon dioxide se-
questration facility; and 
(B) identifying potential carbon dioxide 
transportation routes; and 
(2) with respect to State regulation of a pri-
vately owned carbon dioxide sequestration utility— 
(A) helping with developing regulations for 
any privately owned carbon dioxide sequestra-
tion utility, including with respect to the devel-
opment of a permitting system; and 
(B) assisting with developing regulations 
for— 
(i) services provided by a privately 
owned carbon dioxide sequestration utility; 
and 
(ii) the setting of rates charged for 
such services. 
(c) REPORT.—Not later than 1 year after the date 
of enactment of this section, the Secretary shall submit 
to Congress a report that— 
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(1) characterizes Federal, State, and local regu-
lations that apply to the development and operation 
of carbon dioxide transportation infrastructure and 
sequestration facilities; 
(2) identifies any gaps in applicable regulations 
that need to be addressed to ensure the safe and ef-
fective operation of carbon dioxide transportation in-
frastructure and sequestration facilities; 
(3) evaluates whether regulation of the rates 
and terms of service for carbon dioxide transpor-
tation service or sequestration service is necessary to 
ensure fair access to such services; 
(4) evaluates whether the use of the right of 
eminent domain to develop carbon dioxide transpor-
tation infrastructure and sequestration facilities is 
consistent with the public interest; and 
(5) provides any recommended changes to Fed-
eral law that would support the development and use 
of carbon dioxide transportation infrastructure and 
sequestration facilities consistent with the public in-
terest. 
(d) CARBON DIOXIDE SEQUESTRATION UTILITY DE-
FINED.—The term ‘‘carbon dioxide sequestration utility’’ 
means any organization that provides carbon dioxide 
transportation or sequestration service. 
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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 1 year after the 
date of enactment of this section, the Secretary shall es-
tablish technology performance and cost targets for three 
consecutive 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 end-
ing on the date that is 15 years following such date of 
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; 
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(E) hydropower; 
(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. 
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 
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 2022 through 2031. 
(c) FEDERAL PROCUREMENT.— 
(1) IN GENERAL.—The Secretary, in collabora-
tion with the Secretary of Defense and the Adminis-
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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). 
(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— 
(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’’. 
(d) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out subsection 
(a) the following: 
(1) With respect to the advanced renewable en-
ergy technologies projects described in section 
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201(b)(1), $2,000,000,000 for each of fiscal years 
2022 through 2031. 
(2) With respect to the energy storage tech-
nologies projects described in section 201(b)(2), 
$400,000,000 for each of fiscal years 2022 through 
2031. 
(3) With respect to the transmission tech-
nologies and projects described in section 201(b)(3), 
$600,000,000 for each of fiscal years 2022 through 
2031. 
(4) With respect to the commercial, industrial, 
and residential energy efficiency technologies de-
scribed in section 201(b)(4), $1,000,000,000 for 
each of fiscal years 2022 through 2031. 
(5) With respect to the industrial process and 
building electrification technologies described in sec-
tion 201(b)(5), $1,000,000,000 for each of fiscal 
years 2022 through 2031. 
SEC. 203. UPDATING MANUFACTURED HOMES. 
(a) UPDATING MANUFACTURED HOMES.—Not later 
than one year after the date of enactment of this section, 
the Secretary shall establish a program to provide grants 
and technical assistance to individuals or businesses to fa-
cilitate the replacement of inefficient manufactured homes 
with efficient manufactured homes. 
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(b) DEFINITIONS.—In this section: 
(1) EFFICIENT
MANUFACTURED
HOME.—The 
term ‘‘efficient manufactured home’’ means a manu-
factured home for which the Energy Star label may 
be used in accordance with section 324A of the En-
ergy Policy and Conservation Act (42 U.S.C. 
6294a). 
(2) INEFFICIENT MANUFACTURED HOME.—The 
term ‘‘inefficient manufactured home’’ means a 
manufactured home that was manufactured before 
June 1976. 
(3) MANUFACTURED HOME.—The term ‘‘manu-
factured home’’ has the meaning given such term in 
section 603 of the Housing and Community Devel-
opment Act of 1974 (42 U.S.C. 5402). 
(c) AUTHORIZATION.—There is authorized to be ap-
propriated to carry out this section $2,500,000,000 for 
each of fiscal years 2022 through 2031, to remain avail-
able until expended. 
SEC. 204. INVESTMENT TAX CREDITS FOR ENERGY BAT-
TERY STORAGE, OFFSHORE WIND, AND CER-
TAIN HYDROPOWER TECHNOLOGIES. 
(a) IN GENERAL.—Section 48(a) of the Internal Rev-
enue Code of 1986 is amended— 
(1) by striking subparagraph (5)(F), and 
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(2) in paragraph (3)(A), by striking ‘‘or’’ at the 
end of clause (vii), and by adding at the end the fol-
lowing new clauses: 
‘‘(ix) equipment which generates wind 
energy from an offshore facility, 
‘‘(x) energy storage equipment, 
‘‘(xi) eligible hydroelectric equipment, 
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 
(B) by striking ‘‘paragraph (3)(A)(i)’’ each 
place it appears and inserting ‘‘clause (i), (ix), 
(x), (xi), or (xii) of paragraph (3)(A)’’. 
(c) DEFINITIONS.— 
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(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: 
‘‘(6) 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. 
‘‘(7) 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 
energy storage, regenerative fuel cells, flywheels, ca-
pacitors, superconducting magnets, or other tech-
nologies identified by the Secretary in consultation 
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with the Secretary of Energy, and which has a ca-
pacity of not less than 5 kilowatt hours. 
‘‘(8) ELIGIBLE HYDROELECTRIC EQUIPMENT.— 
The term ‘eligible hydroelectric equipment’ means 
equipment used for the generation of electricity in-
stalled at a dam which— 
‘‘(A) 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 prior to the date of the enactment of this 
paragraph, 
‘‘(B) is part of a project that is licensed by 
the Federal Energy Regulatory Commission 
and meets all other applicable environmental, li-
censing, and regulatory requirements, and 
‘‘(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 
the purpose of improving environmental quality 
of the affected waterway. 
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‘‘(9) 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 diox-
ide removal’’ after ‘‘emissions’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2020. 
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, 2022’’ 
and inserting ‘‘January 1, 2031’’. 
(b) SOLAR.—Section 45(d)(4)(A) of such Code is 
amended by striking ‘‘is placed in service before January 
1, 2006’’ and inserting ‘‘the 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 
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amended by striking ‘‘January 1, 2022’’ 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)’’. 
(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) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986, as amended by this Act, is amended by adding at 
the end the following new section: 
‘‘SEC. 45V. DEEP RETROFITS AND ZERO-ENERGY COMMER-
CIAL AND RESIDENTIAL BUILDINGS. 
‘‘(a) ELIGIBILITY FOR TAX CREDIT.—For purposes 
of section 38, in the case of an eligible taxpayer who places 
an eligible building in service, the deep retrofits and zero- 
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energy commercial and residential buildings credit deter-
mined under this section for a taxable year is the applica-
ble amount with respect to such eligible building. 
‘‘(b) ELIGIBLE TAXPAYER.— 
‘‘(1) IN GENERAL.—For purposes of subsection 
(a), the term ‘eligible taxpayer’ means, with respect 
to an eligible building— 
‘‘(A) for a residential building, the builder, 
and 
‘‘(B) for a commercial building, the build-
ing owner. 
‘‘(2) TRANSFER OF CREDIT.—An eligible tax-
payer who is a building owner eligible for a credit 
under subparagraph (B) of paragraph (1) may elect 
to transfer such credit to the architect, builder, or 
contractor of such building. 
‘‘(3) ELIGIBLE BUILDING.— 
‘‘(A) IN GENERAL.—For purposes of this 
subsection, the term ‘eligible building’ means a 
building— 
‘‘(i) located in the United States, 
‘‘(ii) which is at least 50 percent occu-
pied in the taxable year in the tax credit 
is claimed, 
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‘‘(iii) with respect to which a certifi-
cation has been issued for a qualifying rea-
son pursuant to subsection (c), and 
‘‘(iv) with respect to which no credit 
under this section has been claimed for the 
same qualifying reason in a prior taxable 
year. 
‘‘(B) QUALIFYING REASON.—For purposes 
of this paragraph, with respect to an eligible 
building, the term ‘qualifying reason’ means 
such building— 
‘‘(i) has undergone a deep energy ret-
rofit, 
‘‘(ii) is a zero-energy-ready building, 
or 
‘‘(iii) is a zero-energy building placed 
in service at least 12 months prior to the 
taxable year in which the credit is claimed. 
‘‘(C) SPECIAL
RULE
FOR
ZERO-ENERGY 
AND ZERO-ENERGY-READY BUILDINGS.—A tax-
payer may claim the credit under this section 
twice for the same building if— 
‘‘(i) the credit is claimed in a taxable 
year for the qualifying reason described in 
subparagraph (B)(ii), and 
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‘‘(ii) the credit is claimed in a suc-
ceeding taxable year for the qualifying rea-
son described in subparagraph (B)(iii). 
‘‘(c) CERTIFICATIONS.— 
‘‘(1) DEEP ENERGY RETROFIT.—In the case of 
a building with respect to which a deep energy ret-
rofit was implemented, such retrofit shall meet the 
certification standard of subsection (b)(3)(A) if it 
has been completed and certified as a deep energy 
retrofit by a registered architect or engineer, or by 
another professional authorized by the Secretary of 
Energy by rule. 
‘‘(2) ZERO-ENERGY BUILDING.—In the case of 
a building which is a zero-energy building, such 
building shall meet the certification standard of sub-
section (b)(3)(A) if the building has been zero-en-
ergy over a span of 12 continuous months with at 
least 50 percent occupancy 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 
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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 
‘‘(B) for a commercial building, $25 per 
square foot of floor area, up to a maximum of 
$2,000,000 per building. 
‘‘(e) 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-
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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 
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- 
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family building with four or more above grade sto-
ries. 
‘‘(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 
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one megawatt hour of renewable energy, and can be 
sold separately from the underlying physical elec-
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— 
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‘‘(A) if it is a commercial building or high- 
rise residential building— 
‘‘(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-
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ance with the Energy Rating Index re-
quirement shall be made by a registered 
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. 
‘‘(f) DENIAL OF DOUBLE BENEFIT.—No credit shall 
be allowed under this section for any expense for which 
a deduction or credit is allowed under any other provision 
of this chapter, including under sections 25C, 25D, and 
179D. 
‘‘(g) SUNSET.—The tax credit under this section 
shall terminate— 
‘‘(1) for zero-energy and zero-energy-ready resi-
dential buildings, one year after the Secretary of En-
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‘‘(i) 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 out by 
the applicable amount categories in subsection (d), which 
shall include— 
‘‘(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) CONFORMING AMENDMENTS.— 
(1) Section 38(b) of the Internal Revenue Code 
of 1986 is amended— 
(A) in paragraph (33), by striking ‘‘plus’’ 
at the end, 
(B) in paragraph (34), by striking the pe-
riod at the end and inserting, ‘‘plus’’, and 
(C) by adding at the end the following new 
paragraph: 
‘‘(34) the Deep energy retrofits and zero-energy 
commercial and residential buildings credit deter-
mined under section 45V(a).’’. 
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(2) The table of sections for subpart D of part 
IV of subchapter A of chapter 1 of such Code is 
amended by adding at the end the following new 
item: 
‘‘Sec. 45V. Deep retrofits and zero-energy commercial and residential build-
ings.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2021. 
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 this Act, 
is 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 using any resource described in sec-
tion 45(c)(1) or energy property described 
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 re-
gard to any placed in service date or date 
by which construction of the facility is re-
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quired to begin), the accepting or proc-
essing 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 
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 
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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). 
‘‘(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.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986, as amended by this Act, is amended by adding at 
the end the following new section: 
‘‘SEC. 
45W. 
MANUFACTURER 
CREDIT 
FOR 
HIGH-EFFI-
CIENCY 
HEAT 
PUMPS 
AND 
HEAT 
PUMP 
WATER HEATERS. 
‘‘(a) ALLOWANCE OF CREDIT.— 
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‘‘(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. 
‘‘(2) CREDIT
AMOUNTS.—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 one of 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. 
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‘‘(2) COMMERCIAL HEAT PUMP WATER HEAT-
ERS.—The applicable amount is $24 per thousand 
British Thermal Units of heating capacity in the 
case of a commercial heat pump water heater manu-
factured in one of calendar years 2022 through 
2030 and that has a Coefficient of Performance of 
3.0 or more for electric water heaters and 1.3 or 
more for gas water heaters. 
‘‘(3) CONSUMER UNITARY HEAT PUMPS.—The 
applicable amount is $1000 in the case of a con-
sumer 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 
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‘‘(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) 
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 
subsection (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 
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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. 
‘‘(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), 
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‘‘(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, has a maximum electric current rating of 24 
amperes at an input voltage of 250 volts or less for 
electric water heaters, or a gas input of 75,000 Btu 
per hour or less for gas water heaters, measured in 
accordance with applicable U.S. Department of En-
ergy test procedures. 
‘‘(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 is not a consumer heat pump water 
heater defined in paragraph (2). 
‘‘(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. 
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‘‘(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 
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. 
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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 Energy test procedure, manufacturers may use 
their own tests, provided they publicly post the test 
conditions and assumptions they used in developing 
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 
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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 
subsection (c) shall not take effect until January 1, 
2025.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1, 
as amended by this Act, 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 by striking subpara-
graphs (B) through (E) and inserting the following: 
‘‘(B) $569,000,000 for fiscal year 2022; 
‘‘(C) $713,000,000 for fiscal year 2023; 
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(4) $150,000,000 for fiscal year 2025. 
(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-
ergy efficiency, demand response, and electrification tech-
nologies in residential, commercial, and industrial build-
ings— 
(1) $381,000,000 for fiscal year 2022; 
(2) $478,000,000 for fiscal year 2023; 
(3) $574,000,000 for fiscal year 2024; and 
(4) $670,000,000 for fiscal year 2025. 
(h) INDUSTRY.—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 to reduce emissions in industrial and 
manufacturing processes, including such technologies re-
lating to energy efficiency and electrification— 
(1) $381,000,000 for fiscal year 2022; 
(2) $478,000,000 for fiscal year 2023; 
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(3) $574,000,000 for fiscal year 2024; and 
(4) $840,000,000 for fiscal year 2025. 
(i) ENHANCED
GEOTHERMAL
TECHNOLOGIES.— 
There are authorized to the Secretary for the purposes 
of research, development, and demonstration of enhanced 
geothermal technologies an increase in the amount from 
fiscal year 2019 appropriations by $100,000,000 for each 
year until fiscal year 2026, of which— 
(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’’. 
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(b) ISSUANCE OF CREDITS.—Under the Zero-Emis-
sions Credit Program the Secretary shall, by not later 
than March 1 of each calendar year, issue zero-emissions 
credits to each owner or operator of a qualified nuclear 
power plant in the quantity that is equal to the number 
of megawatt-hours of electricity sold by such owner or op-
erator to an organized power market in the prior year. 
(c) PAYMENT FOR 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 such owner or oper-
ator submits to the Secretary. 
(2) ADJUSTMENTS FOR INFLATION.—Each year 
the Secretary shall adjust the amount paid for each 
zero-emissions credit to account for the effects of in-
flation based on the Consumer Price Index for All 
Urban Consumers (as published by the Bureau of 
Labor Statistics of the Department of Labor). 
(3) REDUCTION IN VALUE OF CREDIT.—If the 
price for the sale of electricity to an organized power 
market increases in a calendar year such that pay-
ments for zero-emissions credits under paragraph 
(1) are no longer needed to prevent the retirement 
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of a qualified nuclear power plant in the subsequent 
year, the Secretary shall, after the application of any 
adjustment under paragraph (2), reduce the amount 
to be paid for each zero-emissions credit to the 
owner or operator of such qualified nuclear power 
plant to account for such change in price. 
(4) OFFSET
FOR
VALUE
OF
CLEAN
ELEC-
TRICITY CREDITS.—If the owner or operator of a 
qualified nuclear power plant is issued any clean 
electricity credits under section 611 of the Public 
Utility Regulatory Policies Act of 1978 (as added by 
section 402 of this Act) in a calendar year in which 
such owner or operator is issued zero-emissions cred-
its, the Secretary shall reduce the amount paid for 
such zero-emissions credits by the value of such 
clean electricity credits. 
(d) 
TERMINATION
DATE.—The 
Zero-Emissions 
Credit Program shall terminate on the date that is 5 years 
after the program effective date. 
(e) RULEMAKING.—Not later than 1 year after the 
date of enactment of this section, the Secretary shall issue 
a final rule to carry out this section. 
(f) DEFINITIONS.—In this section: 
(1) CLEAN
ELECTRICITY
CREDIT.—The term 
‘‘clean electricity credit’’ has the meaning given such 
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term in section 611(g) of the Public Utility Regu-
latory Policies Act of 1978 (as added by section 402 
of this Act). 
(2) ORGANIZED
POWER
MARKET.—The term 
‘‘organized power market’’ means any market that is 
controlled by a Regional Transmission Organization 
or an Independent System Operator, as such terms 
are defined in section 3 of the Federal Power Act 
(16 U.S.C. 796). 
(3) PROGRAM
EFFECTIVE
DATE.—The term 
‘‘program effective date’’ has the meaning given 
such term in section 611(g) of the Public Utility 
Regulatory Policies Act of 1978 (as added by section 
402 of this Act). 
(4) QUALIFIED NUCLEAR POWER PLANT.— 
(A) IN
GENERAL.—The term ‘‘qualified 
nuclear power plant’’ means any nuclear power 
plant the Secretary determines, by not later 
than 2 years after the date of enactment of this 
Act and based on an application submitted by 
such plant to the Secretary, is not financially 
viable or will otherwise be required to retire if 
it does not receive zero-emissions credits under 
the Zero-Emissions Credit Program. 
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(B) EXCLUSION.—The term ‘‘qualified nu-
clear power plant’’ does not include a nuclear 
power plant with respect to which a tax credit 
under section 48 of the Internal Revenue Code 
of 1986 is claimed in the taxable year prior to 
the taxable year in which the Secretary makes 
the determination under subparagraph (A). 
(5) 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-hour of electricity sold 
by the owner or operator of a qualified nuclear 
power plant to an organized power market. 
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, as amended by section 204, 
is amended by striking ‘‘or’’ at the end of clause (xi), by 
adding ‘‘or’’ at the end of clause (xii), and by adding at 
the end the following new clause: 
‘‘(xiii) 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’’ 
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in subclause (IV) and by adding at the end the following 
new subclause: 
‘‘(VI) energy property described 
in paragraph (3)(A)(xiii), 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, as amended by section 204, is 
amended by adding at the end the following new para-
graph: 
‘‘(10) QUALIFIED
NUCLEAR
ENERGY
PROP-
ERTY.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
nuclear energy property’ means, with respect to 
a qualifying nuclear power plant— 
‘‘(i) amounts paid or incurred for the 
refueling of such power plant, and 
‘‘(ii) any expenditure described in sec-
tion 263(a). 
‘‘(B) 
QUALIFYING
NUCLEAR
POWER 
PLANT.—The term ‘qualifying nuclear power 
plant’ means a nuclear power plant which— 
‘‘(i) submits an application for license 
renewal to the Nuclear Regulatory Com-
mission in accordance with part 54 of title 
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10, Code of Federal Regulations, before 
January 1, 2026, or 
‘‘(ii) certifies to the Secretary (at such 
time and in such form and in such manner 
as the Secretary may prescribe) that such 
plant will submit an application for license 
renewal to the Nuclear Regulatory Com-
mission in accordance with part 54 of title 
10, Code of Federal Regulations, before 
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 
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 
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pays or incurs such amounts described in 
clause (i). 
‘‘(iii) 
RECAPTURE.—The 
Secretary 
shall provide by regulations for the recap-
ture of any credit allowable under sub-
section (a) to any qualifying nuclear power 
plant which makes a certification pursuant 
to subparagraph (B) but does not file an 
application of license renewal to the Nu-
clear Regulatory Commission in accordance 
with part 54 of title 10, Code of Federal 
Regulations, before January 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: 
‘‘(8) 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 
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‘‘(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.—Sec-
tion 48(a)(3) of such Code is amended by inserting ‘‘or 
section 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— 
‘‘(A) the taxpayer is a qualified public enti-
ty, and 
‘‘(B) such qualified public entity elects the 
application of this subsection for such taxable 
year with respect to such credit (or any portion 
thereof), the eligible project partner specified in 
such election shall be treated as the taxpayer 
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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 received a loan or loan guarantee 
under the Rural Electrification Act of 
1936. 
‘‘(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 
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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 
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 
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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: 
‘‘(K) In the case of a mutual or coopera-
tive electric company described in this para-
graph or an organization described in section 
1381(a)(2), income received or accrued in con-
nection 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-
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graphs (6) and (7)’’ and inserting ‘‘paragraphs (6), (7), 
and (8)’’. 
(h) EFFECTIVE DATE.—The amendments made by 
this section shall apply to periods after December 31, 
2020, 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) FEDERAL PURCHASE REQUIREMENT.—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-
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 2020 shall be renewable energy.’’; 
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(5) in subsection (a), by adding at the end the 
following: 
‘‘(4) Not less than 35 percent in fiscal year 
2021 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) electric energy generated by a nuclear 
power plant; and 
‘‘(C) electric energy generated by a power 
plant equipped with carbon capture utilization 
and storage technology, from which at least 90 
percent of the carbon dioxide output of such 
plant is captured and utilized, or stored in a 
manner that prevents emission to the atmos-
phere.’’; 
(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 
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(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 any amount of the electricity gen-
erated by a nuclear power plant for the duration of the 
operational life of such nuclear power plant if such nuclear 
power plant supplies electricity for purposes of national 
security or mission-critical activities.’’. 
(b) LONG-TERM
NUCLEAR
POWER
PURCHASE 
AGREEMENT PILOT PROGRAM.—Subtitle B of title VI of 
the Energy 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 to enter into long-term 
power purchase agreements for electricity generated by 
commercial nuclear power plants. 
‘‘(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-
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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 10 years after the date of 
enactment 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 commercial nuclear power 
plant— 
‘‘(1) to which a license is issued under section 
103 of the Atomic Energy Act of 1954 (42 U.S.C. 
2133) after January 1, 2021; 
‘‘(2) that uses first-of-a-kind or early deploy-
ment nuclear technology; and 
‘‘(3) that can provide reliable and resilient 
power— 
‘‘(A) to high-value assets for national secu-
rity purposes; or 
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‘‘(B) for other purposes that the Secretary 
determines are in the national interest, includ-
ing in remote off-grid scenarios or grid-con-
nected scenarios for which such commercial nu-
clear power plant can provide capabilities com-
monly known as ‘islanding power capabilities’. 
‘‘(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 a purpose described 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 
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may be for a period of not more than 
40 years. 
‘‘(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 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-
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tors pursuant to the Atomic Energy Act of 1954 (42 
U.S.C. 2011 et seq.). 
(2) REQUIRED
RECOMMENDATIONS.—The re-
port submitted under paragraph (1) shall include 
recommendations to— 
(A) improve, accelerate, and reduce the 
cost of all Commission actions with respect to 
licensing, certification, and approval of ad-
vanced nuclear reactors pursuant to the Atomic 
Energy Act of 1954 (42 U.S.C. 2011 et seq.), 
including actions to improve compliance with 
section 102(2)(C) of the National Environ-
mental Policy Act of 1969 (42 U.S.C. 
4332(2)(C)); 
(B) emphasize risk-informed and perform-
ance-based regulatory approaches; and 
(C) enable the Commission to finalize re-
view of an application for certification of a de-
sign of an advanced nuclear reactor pursuant to 
the Atomic Energy Act of 1954 (42 U.S.C. 
2011 et seq.) by not later than 2 years after the 
date on which such application is filed. 
(3) DEFINITIONS.—In this subsection: 
(A) ADVANCED NUCLEAR REACTOR.—The 
term ‘‘advanced nuclear reactor’’ has the mean-
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100 
ing given such term in section 951(b)(1) of the 
Energy Policy Act of 2005 (42 U.S.C. 
16271(b)(1)). 
(B) COMMISSION.—The term ‘‘Commis-
sion’’ means the Nuclear Regulatory Commis-
sion. 
(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 related to foreign 
ownership and control under sections 103 d. and 104 d. 
of the Atomic Energy Act of 1954 (42 U.S.C. 2133(d) 
and 2134(d)). 
(c) STUDY ON THE IMPACT OF THE ELIMINATION OF 
MANDATORY HEARINGS FOR UNCONTESTED LICENSING 
APPLICATIONS.—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 estimated 
effect of eliminating the requirement under section 189 
of the Atomic Energy Act of 1954 (42 U.S.C. 2239) to 
hold a hearing for uncontested applications. 
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101 
(d) DEFINITIONS.—Section 11 of the Atomic Energy 
Act of 1954 (42 U.S.C. 2014) is amended by adding at 
the end the following: 
‘‘jj. EARLY SITE PERMIT.—In sections 182, 189, and 
194, the term ‘early site permit’ has the meaning given 
such term in section 52.1 of title 10, Code of Federal Reg-
ulations (as in effect on the date of enactment of this sub-
section).’’. 
(e) APPLICATION REVIEWS FOR NUCLEAR ENERGY 
PROJECTS.— 
(1) LICENSE
APPLICATIONS.—Section 182 of 
the Atomic Energy Act of 1954 (42 U.S.C. 2232) is 
amended by adding at the end the following: 
‘‘e. STREAMLINING APPLICATION REVIEW.—With re-
spect to an application for a construction permit, oper-
ating license, or combined construction permit and oper-
ating license, the Commission shall— 
‘‘(1) undertake an expedited environmental re-
view process and issue any draft environmental im-
pact statements (as required pursuant to section 
102(2)(C) the National Environmental Policy Act of 
1969 (42 U.S.C. 4332(2)(C))) for the application 
not later than 12 months after the date on which 
the application is accepted for docketing; and 
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102 
‘‘(2) complete the technical review process of 
the application, issue any safety evaluation reports, 
and issue any final environmental impact statements 
(as required pursuant to section 102(2)(C) the Na-
tional Environmental Policy Act of 1969 (42 U.S.C. 
4332(2)(C))) for the application not later than 24 
months after the date on which the application is ac-
cepted for docketing. 
‘‘f. PRODUCTION
OR UTILIZATION FACILITY LO-
CATED AT AN EXISTING SITE.—In reviewing an applica-
tion for an early site permit, construction permit, oper-
ating license, or combined construction permit and oper-
ating license for a proposed production facility or utiliza-
tion facility that is to be located at the site of a production 
facility or utilization facility for which an early site permit, 
construction permit, operating license, or combined con-
struction permit and operating license has been issued, the 
Commission shall, to the extent practicable, use informa-
tion that was part of the determination to issue the license 
for such production facility or utilization facility.’’. 
(2) USE
OF
EARLY
SITE
PERMIT
ENVIRON-
MENTAL IMPACT STATEMENT.—Chapter 16 of the 
Atomic Energy Act of 1954 (42 U.S.C. 2231 et 
seq.) is amended by adding at the end the following: 
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103 
‘‘SEC. 194. USE OF EARLY SITE PERMIT ENVIRONMENTAL 
IMPACT STATEMENT. 
‘‘a. 
SUPPLEMENTAL
ENVIRONMENTAL
IMPACT 
STATEMENT.—Any environmental impact statement re-
quired pursuant to section 102(2)(C) the National Envi-
ronmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)) for 
purposes of issuing a construction permit, operating li-
cense, or combined construction permit and operating li-
cense for a production facility or utilization facility, for 
which an early site permit has been issued, shall be pre-
pared as a supplement to the environmental impact state-
ment prepared for such early site permit. 
‘‘b. INCORPORATION
BY REFERENCE.—A supple-
mental environmental impact statement prepared under 
subsection a. shall— 
‘‘(1) incorporate by reference the analysis, find-
ings, and conclusions from the environmental impact 
statement prepared for the applicable early site per-
mit; and 
‘‘(2) include additional discussion, analysis, 
findings, and conclusions on matters resolved in the 
early site permit proceeding only to the extent nec-
essary to address information that— 
‘‘(A) is new; and 
‘‘(B) would materially change the prior 
findings or conclusions.’’. 
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104 
(f) HEARINGS.— 
(1) IN GENERAL.—Section 189 of the Atomic 
Energy Act of 1954 (42 U.S.C. 2239) is amended— 
(A) in subsection a. (1) (B)— 
(i) by striking clause (iv); and 
(ii) by redesignating clause (v) as 
clause (iv); and 
(B) by adding at the end the following: 
‘‘c. HEARING PROCEDURES.—All hearings under this 
section shall be conducted using informal adjudicatory 
procedures, unless the Commission determines that formal 
adjudicatory procedures are necessary— 
‘‘(1) to develop a sufficient record; or 
‘‘(2) to achieve fairness. 
‘‘d. HEARING ON EARLY SITE PERMIT, CONSTRUC-
TION PERMIT, OPERATING LICENSE, AND COMBINED 
CONSTRUCTION PERMIT AND OPERATING LICENSE.— 
‘‘(1) IN GENERAL.—Notwithstanding any out-
standing request for a hearing, the Commission shall 
issue and make immediately effective any early site 
permit, construction permit, operating license, or 
combined construction permit and operating license 
for a production facility or utilization facility upon 
the Commission’s finding that the application there-
for satisfies the requirements of this Act. 
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105 
‘‘(2) APPROPRIATE ACTION.—Following comple-
tion of any required hearing, the Commission shall 
take any appropriate action with respect to the early 
site permit, construction permit, operating license, 
or combined construction permit and operating li-
cense to the extent necessary to account for the deci-
sion in any such required hearing.’’. 
(2) LICENSING OF URANIUM ENRICHMENT FA-
CILITIES.—Section 193(b) of the Atomic Energy Act 
of 1954 (42 U.S.C. 2243(b)) is amended— 
(A) by amending paragraph (1) to read as 
follows: 
‘‘(1) IN GENERAL.—Upon a request for a hear-
ing on the licensing of construction and operation of 
a uranium enrichment facility under sections 53 and 
63, the Commission shall conduct a single adjudica-
tory hearing.’’; and 
(B) in paragraph (2), by striking ‘‘Such 
hearing’’ and inserting ‘‘If a hearing is held 
under paragraph (1), the hearing’’. 
(g) TECHNICAL AMENDMENT.—Section 103 d. of the 
Atomic Energy Act of 1954 (42 U.S.C. 2133d.) is amend-
ed by striking ‘‘or any any’’ and inserting ‘‘or any’’. 
(h) AUTHORIZATION OF APPROPRIATIONS.— 
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106 
(1) IN GENERAL.—There are authorized to be 
appropriated to carry out subsections (a), (b), and 
(c) $20,000,000 for each of fiscal years 2021 
through 2031, to remain available until expended. 
(2) OFF-FEE APPROPRIATION.—Any funds ap-
propriated to carry out subsections (a), (b), and (c) 
may not be recovered by the Commission through 
the collection of user fees from existing licensees. 
SEC. 305. DEMONSTRATION AND EARLY DEPLOYMENT OF 
ADVANCED NUCLEAR REACTORS. 
(a) DEMONSTRATION PROJECTS.—Section 959A(c) 
of the Energy Policy Act of 2005 (42 U.S.C. 16279a(c)) 
is amended— 
(1) by redesignating paragraphs (1) through 
(10) as paragraphs (2) through (11), respectively; 
(2) by inserting after ‘‘the Secretary shall—’’ 
the following: 
‘‘(1) not later than December 31, 2025, estab-
lish a program to enter into agreements to carry out 
no fewer than 5 demonstration projects pursuant to 
subsection (b)(1) to demonstrate the suitability of 
advanced nuclear reactors for commercial applica-
tions;’’; 
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107 
(3) in paragraph (10)(A), as redesignated by 
paragraph (1) of this subsection, by striking ‘‘para-
graph (8)’’ and inserting ‘‘paragraph (9)’’; and 
(4) in paragraph (11), as redesignated by para-
graph (1) of this subsection, by striking ‘‘paragraph 
(8)’’ and inserting ‘‘paragraph (9)’’ and by striking 
‘‘paragraph (9)’’ and inserting ‘‘paragraph (10)’’. 
(b) RESEARCH AND DEVELOPMENT GOALS.—Section 
959A of such Act (42 U.S.C. 16279a(c)) is amended— 
(1) by redesignating subsection (f) as sub-
section (g); and 
(2) by inserting after subsection (e) the fol-
lowing: 
‘‘(f) RESEARCH GOALS.— 
‘‘(1) IN GENERAL.—The Secretary shall estab-
lish and annually update goals for the research to 
support the demonstration of advanced reactors 
under subsection (c) and the deployment of subse-
quent advanced reactors. 
‘‘(2) COORDINATION.—In developing and up-
dating the goals, the Secretary shall coordinate with 
members of private industry. 
‘‘(3) REQUIREMENTS.—In developing the goals, 
the Secretary shall ensure that— 
‘‘(A) research activities are focused on— 
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113 
‘‘(d) DEFINITIONS.—In this section: 
‘‘(1) ADVANCED
DISPATCHABLE
RENEWABLE 
ENERGY SYSTEM.—The term ‘advanced dispatchable 
renewable energy system’ means an integrated sys-
tem of energy storage technology deployed with wind 
or solar electricity generation technology for which 
the Secretary has determined that the availability of 
such integrated system to be dispatched to support 
ongoing electric grid reliability is similar to that of 
fossil-fueled electricity generation technology. 
‘‘(2) ADVANCED NUCLEAR POWER GENERATION 
TECHNOLOGY.—The term ‘advanced nuclear power 
generation technology’ has the meaning given the 
term ‘advanced nuclear reactor’ in section 951(b) of 
the Energy Policy Act of 2005 (42 U.S.C. 16271). 
‘‘(3) ELIGIBLE TECHNOLOGY.—The term ‘eligi-
ble technology’ means any of the following: 
‘‘(A) Advanced nuclear power generation 
technology. 
‘‘(B) Advanced dispatchable renewable en-
ergy system. 
‘‘(C) Fossil-fueled electricity generation 
technology equipped with carbon capture utili-
zation and storage technology, from which at 
least 90 percent of the carbon dioxide output of 
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