ment compensation law administered by the 
State agency or under any other State or Fed-
eral law administered by the State agency 
which provides for the payment of any assist-
ance or allowance with respect to any week of 
unemployment, during the 3-year period after 
the date such individuals received the payment 
of the additional unemployment compensation 
to which they were not entitled, in accordance 
with the same procedures as apply to the recov-
ery of overpayments of regular unemployment 
benefits paid by the State. 
‘‘(B) OPPORTUNITY
FOR
HEARING.—No 
repayment shall be required, and no deduction 
shall be made, until a determination has been 
made, notice thereof and an opportunity for a 
fair hearing has been given to the individual, 
and the determination has become final. 
‘‘(4) REVIEW.—Any determination by a State 
agency under this subsection shall be subject to re-
view in the same manner and to the same extent as 
determinations under the State unemployment com-
pensation law, and only in that manner and to that 
extent. 
‘‘(d) DEFINITIONS.—In this section: 
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‘‘(1) APPLICABLE INDIVIDUAL.—The term ‘ap-
plicable individual’ means, with respect to a week of 
additional unemployment compensation, an indi-
vidual who— 
‘‘(A) is a certified adversely affected work-
er (as defined in section 202 of the Clean En-
ergy Worker Just Transition Act) for such 
week; and 
‘‘(B) has been awarded adjustment assist-
ance for option A under section 221(b)(1) of 
such Act for such week. 
‘‘(2) EB PROGRAM DEFINITIONS.—The terms 
‘compensation’, ‘regular compensation’, ‘extended 
compensation’, ‘benefit year’, ‘base period’, ‘State’, 
‘State agency’, ‘State law’, and ‘week’ have the re-
spective meanings given such terms under section 
205 of the Federal-State Extended Unemployment 
Compensation Act of 1970 (26 U.S.C. 3304 note).’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for chapter 23 of subtitle C of the Internal Revenue Code 
of 1986 is amended by adding at the end the following 
item: 
‘‘Sec. 3312. Additional unemployment compensation.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on January 1, 2020, and shall 
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apply to weeks of unemployment ending on or after such 
date. 
PART IV—OTHER BENEFITS AND SERVICES 
SEC. 241. ELIGIBILITY FOR PREMIUM SUBSIDY CREDIT AND 
COST SHARING BENEFITS FOR HEALTH IN-
SURANCE. 
(a) PREMIUM SUBSIDY CREDIT.— 
(1) IN
GENERAL.—Paragraph (1) of section 
36B(c) of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new 
subparagraph: 
‘‘(E) SPECIAL
RULE
FOR
CERTAIN
CER-
TIFIED ADVERSELY AFFECTED WORKERS.—If— 
‘‘(i) a taxpayer has a household in-
come which is not greater than 100 per-
cent of an amount equal to the poverty line 
for a family of the size involved, and 
‘‘(ii) the taxpayer is a certified ad-
versely affected worker under section 202 
of the Clean Energy Worker Just Transi-
tion Act and has been awarded adjustment 
assistance under Option A, Option B, or 
Option C of section 211(b) of such Act, 
the taxpayer shall, for purposes of the credit 
under this section, be treated as an applicable 
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taxpayer with a household income which is 
equal to 100 percent of the poverty line for a 
family of the size involved.’’. 
(2) EFFECTIVE DATE.—The amendment made 
by this subsection shall apply to months beginning 
after December 31, 2017. 
(b) COST SHARING.—The second sentence of section 
1402(b) of the Patient Protection and Affordable Care Act 
is amended by striking ‘‘section 36B(c)(1)(B)’’ and insert-
ing ‘‘subparagraph (C) or (E) of section 36B(c)(1)’’. 
SEC. 242. TRAINING AND SUPPORT FOR EMPLOYMENT. 
(a) DEFINITIONS.—In this section: 
(1) CAREER SERVICES.—The term ‘‘career serv-
ices’’ means services described in section 134(c)(2) 
of the Workforce Innovation and Opportunity Act 
(29 U.S.C. 3174(c)(2)). 
(2) ELIGIBLE
ADVERSELY
AFFECTED
WORK-
ER.—The term ‘‘eligible adversely affected worker’’ 
means a certified adversely affected worker who has 
been awarded adjustment assistance under section 
221(b)(2). 
(3) SUITABLE EMPLOYMENT.—The term ‘‘suit-
able employment’’, used with respect to an eligible 
adversely affected worker, means employment— 
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(A) at a wage that is not less than 90 per-
cent of the wage the worker received on the day 
before the date described in section 213(b); and 
(B) that meets such other requirements as 
the Secretary may specify. 
(4) TRAINING SERVICES.—The term ‘‘training 
services’’ means services provided under section 
134(c)(3) of the Workforce Innovation and Oppor-
tunity Act (29 U.S.C. 3174(c)(3)). 
(b) FUNDING.—Each fiscal year, the Secretary shall 
use a portion of the funds made available under section 
251 to carry out this section. From that portion, the Sec-
retary shall— 
(1) reserve an amount for the Secretary to use 
in ensuring the availability of rapid response activi-
ties and career services under section 211(b)(1); 
(2) reserve an amount to grant job search al-
lowances under subsection (d); 
(3) reserve an amount to grant relocation allow-
ance under subsection (e); and 
(4) use the remainder of the portion to carry 
out subsection (c). 
(c) CAREER SERVICES AND TRAINING SERVICES.— 
(1) FUNDING.—Each fiscal year, the Secretary 
shall use the remainder described in subsection 
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(b)(4) to provide career services and training serv-
ices to eligible adversely affected workers, or to con-
tribute to the costs of the one-stop delivery system 
involved. 
(2) TREATMENT
OF
FUNDS.—The Secretary 
shall treat the funds in that remainder as if the 
funds are part of the amount described in section 
132(b)(2)(B) of the Workforce Innovation and Op-
portunity Act (29 U.S.C. 3172(b)(2)(B)), except 
that— 
(A) all funds in that remainder may only 
be used to provide career services and training 
services to eligible adversely affected worker, or 
to contribute to the costs of the one-stop deliv-
ery system involved, as described in section 
133(b)(5)(B)(ii) of the Workforce Innovation 
and 
Opportunity 
Act 
(29 
U.S.C. 
3173(b)(5)(B)(ii)); 
(B) the funds in that remainder shall not 
be counted for purposes of applying section 
132(b)(2)(B)(iii) or 133(b)(2)(B)(iii) of that 
Act 
(29 
U.S.C. 
3172(b)(2)(B)(iii), 
3173(b)(2)(B)(iii)); and 
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subparagraph (A) to allow an eligible adversely 
affected worker who has completed a program 
of training services or has received appropriate 
career services to file an application with the 
Secretary for payment of a job search allow-
ance. 
(C) APPROVAL
OF
APPLICATIONS.—The 
Secretary may grant an allowance pursuant to 
an application filed under subparagraph (B) 
when all of the following apply: 
(i) ASSIST ELIGIBLE ADVERSELY AF-
FECTED WORKER.—The allowance is paid 
to assist a worker described in subpara-
graph (B) in securing a job within the 
United States. 
(ii) LOCAL EMPLOYMENT NOT AVAIL-
ABLE.—The Secretary determines that the 
worker cannot reasonably be expected to 
secure suitable employment in the com-
muting area in which the worker resides. 
(iii) APPLICATION.—The worker has 
filed an application for the allowance with 
the Secretary at such time and containing 
such information as the Secretary may de-
termine. 
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100 
(2) AMOUNT OF ALLOWANCE.— 
(A) IN GENERAL.—Any allowance granted 
under paragraph (1) shall provide reimburse-
ment to the worker of not more than 90 percent 
of the necessary job search expenses of the 
worker as prescribed by the Secretary in regula-
tions. 
(B) MAXIMUM
ALLOWANCE.—Reimburse-
ment under this paragraph may not exceed 
$1,250 for any worker. 
(C) EXCEPTION.—Notwithstanding sub-
paragraphs (A) and (B), a State may reimburse 
any worker described in paragraph (1)(B) for 
necessary expenses incurred by the worker in 
participating in a job search program approved 
by the Secretary. 
(e) RELOCATION ALLOWANCES.— 
(1) RELOCATION ALLOWANCE AUTHORIZED.— 
(A) DISTRIBUTIONS.— 
(i) INITIAL DISTRIBUTION.—The Sec-
retary shall establish procedures for an ini-
tial distribution to States of reserved funds 
described in subsection (b)(3) and available 
for a fiscal year. Such procedures may in-
clude the distribution of funds pursuant to 
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101 
requests submitted by States in need of 
such funds. 
(ii) SUBSEQUENT
DISTRIBUTION.— 
The Secretary shall establish procedures 
for the distribution to States of the re-
served funds that remain available for the 
fiscal year after the initial distribution re-
quired under clause (i). Such procedures 
may include the distribution of funds pur-
suant to requests submitted by States in 
need of such funds. 
(B) STATE USE OF FUNDS.—Each State 
may use funds distributed to the State under 
subparagraph (A) to allow an eligible adversely 
affected worker to file an application for a relo-
cation allowance with the Secretary, and the 
Secretary may grant the relocation allowance, 
subject to the terms and conditions of this sub-
section. 
(2) CONDITIONS FOR GRANTING ALLOWANCE.— 
The relocation allowance may be granted if all of the 
following terms and conditions are met: 
(A) ASSIST
ELIGIBLE
ADVERSELY
AF-
FECTED
WORKER.—The relocation allowance 
will assist an eligible adversely affected worker 
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102 
in relocating within the United States to receive 
training services or for employment. 
(B) LOCAL
EMPLOYMENT
NOT
AVAIL-
ABLE.—The Secretary determines that the 
worker cannot reasonably be expected to se-
cure— 
(i) in the case of a worker relocating 
to receive training services, suitable train-
ing services in the commuting area in 
which the worker resides; and 
(ii) in the case of a worker relocating 
for employment, suitable employment in 
that commuting area. 
(C) SEPARATION OR THREAT.—The work-
er is totally or partially separated, or is threat-
ened to become totally or partially separated, 
from employment at the time relocation com-
mences. 
(D) SUITABLE
TRAINING
OR
EMPLOY-
MENT.—The worker— 
(i) in the case of a worker relocating 
to receive training services or for employ-
ment after receiving training services, ob-
tains approval from the Secretary for the 
program of training services involved; or 
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103 
(ii) in the case of a worker relocating 
for employment, has obtained suitable em-
ployment affording a reasonable expecta-
tion of long-term duration in the area in 
which the worker wishes to relocate, or has 
obtained a bona fide offer of such employ-
ment. 
(E) APPLICATION.—The worker filed an 
application with the Secretary before— 
(i) in the case of a worker relocating 
for employment or to receive training serv-
ices, the later of— 
(I) the 425th day after the date 
of the certification under section 212 
that covers the worker; or 
(II) the 425th day after the date 
of the worker’s last total separation; 
or 
(ii) in the case of a worker relocating 
for employment after receiving training 
services, the date that is the 182d day 
after the date on which the worker con-
cluded a program of training services ap-
proved by the Secretary under subpara-
graph (D)(i). 
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104 
(3) AMOUNT OF ALLOWANCE.—Any relocation 
allowance granted to a worker under paragraph (1) 
shall include— 
(A) not more than 90 percent of the rea-
sonable and necessary expenses (including sub-
sistence and transportation expenses at levels 
not exceeding those allowable as specified in 
regulations prescribed by the Secretary) in-
curred in transporting the worker, the worker’s 
family, and household effects; and 
(B) a lump sum equivalent to 3 times the 
worker’s average weekly wage, up to a max-
imum payment of $1,250. 
(4) LIMITATIONS.—A relocation allowance may 
not be granted to a worker unless— 
(A) in the case of a worker relocating for 
employment or to receive training services, the 
relocation occurs within 182 days after the fil-
ing of the application for relocation assistance; 
or 
(B) in the case of a worker relocating for 
employment after receiving training services, 
the relocation occurs within 182 days after the 
conclusion of a program of training services ap-
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105 
proved by the Secretary under paragraph 
(2)(D)(i). 
SEC. 243. ADDITIONAL PENSIONS BENEFITS. 
(a) IN GENERAL.—In the case that, with respect to 
a certified adversely affected worker, the amount of pen-
sion plan benefits guaranteed under section 4022 or 
4022A of the Employee Retirement Income Security Act 
of 1974 (29 U.S.C. 1322, 1322a), subject to section 
4022B of such Act (29 U.S.C. 1322b) is less than the 
amount of the nonforfeitable benefit to which such em-
ployee was entitled under the terms of the pension plan 
of the applicable firm immediately before the date of the 
insolvency of such applicable firm, the Pension Benefit 
Guaranty Corporation shall make payments to such cer-
tified adversely affected worker or to the multiemployer 
plan of the certified adversely affected worker, as applica-
ble, on a monthly basis in an amount equal to— 
(1) the excess of— 
(A) the amount to which the employee was 
so entitled; over 
(B) the amount so guaranteed; and 
(2) the payments otherwise made to such work-
er in accordance with section 4022 or 4022A of the 
Employee Retirement Income Security Act of 1974 
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106 
(29 U.S.C. 1322, 1322a), subject to section 4022B 
of such Act (29 U.S.C. 1322b). 
(b) TRANSFERS FROM FUND.—Each fiscal quarter, 
the Secretary of Labor shall transfer from the Trust Fund 
established under section 251 to the fund established 
under subsection (i) of section 4005 of the Employee Re-
tirement Income Security Act (29 U.S.C. 1305) (as added 
by subsection (c)), an amount equal to the aggregate pay-
ments that are expected to be made under subsection 
(a)(1) by the Pension Benefit Guaranty Corporation in the 
subsequent fiscal quarter. The Secretary of Labor may ad-
just the amounts so transferred for a fiscal quarter to ac-
count for any overpayment or underpayment so made in 
a previous fiscal quarter. 
(c) PBGC FUND.—Section 4005 of the Employee Re-
tirement Income Security Act of 1974 (29 U.S.C. 1305) 
is amended by adding at the end the following: 
‘‘(i) An eighth fund shall be established and credited 
with any amounts transferred in accordance with section 
243(b) of the Clean Energy Worker Just Transition Act. 
Such amounts shall be made available to make payments 
in accordance with section 243(a) of such Act.’’. 
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107 
PART V—FUNDING 
SEC. 251. ESTABLISHMENT OF CLEAN ENERGY WORKERS 
TRUST FUND. 
(a) ESTABLISHMENT.—There is established in the 
Treasury of the United States a trust fund to be known 
as the ‘‘Clean Energy Workers Trust Fund’’ (referred to 
in this title as the ‘‘Trust Fund’’), consisting of such 
amounts as may be appropriated to the Trust Fund under 
subsection (b). 
(b) AMOUNTS IN TRUST FUND.—There is appro-
priated to the Trust Fund, on an annual basis, an amount 
equal to the increase in revenues to the Treasury resulting 
from the amendments made by section 252. 
(c) EXPENDITURES FROM TRUST FUND.— 
(1) IN GENERAL.—Except as provided under 
paragraph (2), amounts in the Trust Fund shall be 
available without further appropriation— 
(A) to carry out— 
(i) the group certification and indi-
vidual application provisions under parts I 
and II of this subtitle, respectively; 
(ii) adjustment assistance provided 
through any option under section 221(b) 
(subject to paragraph (2)); and 
(iii) sections 262 and 263; and 
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108 
(B) for the administrative costs associated 
with carrying out subparagraph (A) and this 
section. 
(2) TAX
CREDITS
AND
INCENTIVES.—From 
time to time there shall be transferred from the 
Trust Fund to the general fund of the Treasury 
amounts equal to the decrease in revenues to the 
Treasury resulting from the amendments made by 
sections 241 and 261. 
(3) AVAILABILITY.—The amounts in the Trust 
Fund shall be available for the purposes described in 
paragraphs (1) and (2) to the Secretary and the 
head of any other agency as necessary to carry out 
such purposes. 
SEC. 252. MODIFICATIONS TO RULES RELATING TO IN-
VERTED CORPORATIONS. 
(a) IN GENERAL.—Subsection (b) of section 7874 of 
the Internal Revenue Code of 1986 is amended to read 
as follows: 
‘‘(b) INVERTED CORPORATIONS TREATED AS DO-
MESTIC CORPORATIONS.— 
‘‘(1) IN
GENERAL.—Notwithstanding section 
7701(a)(4), a foreign corporation shall be treated for 
purposes of this title as a domestic corporation if— 
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109 
‘‘(A) such corporation would be a surro-
gate foreign corporation if subsection (a)(2) 
were applied by substituting ‘80 percent’ for 
‘60 percent’, or 
‘‘(B) such corporation is an inverted do-
mestic corporation. 
‘‘(2) INVERTED DOMESTIC CORPORATION.—For 
purposes of this subsection, a foreign corporation 
shall be treated as an inverted domestic corporation 
if, pursuant to a plan (or a series of related trans-
actions)— 
‘‘(A) the entity completes after May 8, 
2014, the direct or indirect acquisition of— 
‘‘(i) substantially all of the properties 
held directly or indirectly by a domestic 
corporation, or 
‘‘(ii) substantially all of the assets of, 
or substantially all of the properties consti-
tuting a trade or business of, a domestic 
partnership, and 
‘‘(B) after the acquisition, either— 
‘‘(i) more than 50 percent of the stock 
(by vote or value) of the entity is held— 
‘‘(I) in the case of an acquisition 
with respect to a domestic corpora-
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110 
tion, by former shareholders of the 
domestic corporation by reason of 
holding stock in the domestic corpora-
tion, or 
‘‘(II) in the case of an acquisition 
with respect to a domestic partner-
ship, by former partners of the do-
mestic partnership by reason of hold-
ing a capital or profits interest in the 
domestic partnership, or 
‘‘(ii) the management and control of 
the expanded affiliated group which in-
cludes the entity occurs, directly or indi-
rectly, primarily within the United States, 
and such expanded affiliated group has 
significant domestic business activities. 
‘‘(3) EXCEPTION
FOR
CORPORATIONS
WITH 
SUBSTANTIAL
BUSINESS
ACTIVITIES
IN
FOREIGN 
COUNTRY OF ORGANIZATION.—A foreign corporation 
described in paragraph (2) shall not be treated as an 
inverted domestic corporation if after the acquisition 
the expanded affiliated group which includes the en-
tity has substantial business activities in the foreign 
country in which or under the law of which the enti-
ty is created or organized when compared to the 
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111 
total business activities of such expanded affiliated 
group. For purposes of subsection (a)(2)(B)(iii) and 
the preceding sentence, the term ‘substantial busi-
ness activities’ shall have the meaning given such 
term under regulations in effect on May 8, 2014, ex-
cept that the Secretary may issue regulations in-
creasing the threshold percent in any of the tests 
under such regulations for determining if business 
activities constitute substantial business activities for 
purposes of this paragraph. 
‘‘(4) MANAGEMENT AND CONTROL.—For pur-
poses of paragraph (2)(B)(ii)— 
‘‘(A) IN
GENERAL.—The Secretary shall 
prescribe regulations for purposes of deter-
mining cases in which the management and 
control of an expanded affiliated group is to be 
treated as occurring, directly or indirectly, pri-
marily within the United States. The regula-
tions prescribed under the preceding sentence 
shall apply to periods after May 8, 2014. 
‘‘(B) EXECUTIVE OFFICERS AND SENIOR 
MANAGEMENT.—Such regulations shall provide 
that the management and control of an ex-
panded affiliated group shall be treated as oc-
curring, directly or indirectly, primarily within 
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112 
the United States if substantially all of the ex-
ecutive officers and senior management of the 
expanded affiliated group who exercise day-to- 
day responsibility for making decisions involving 
strategic, financial, and operational policies of 
the expanded affiliated group are based or pri-
marily located within the United States. Indi-
viduals who in fact exercise such day-to-day re-
sponsibilities shall be treated as executive offi-
cers and senior management regardless of their 
title. 
‘‘(5) SIGNIFICANT DOMESTIC BUSINESS ACTIVI-
TIES.—For purposes of paragraph (2)(B)(ii), an ex-
panded affiliated group has significant domestic 
business activities if at least 25 percent of— 
‘‘(A) the employees of the group are based 
in the United States, 
‘‘(B) the employee compensation incurred 
by the group is incurred with respect to employ-
ees based in the United States, 
‘‘(C) the assets of the group are located in 
the United States, or 
‘‘(D) the income of the group is derived in 
the United States, 
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113 
determined in the same manner as such determina-
tions are made for purposes of determining substan-
tial business activities under regulations referred to 
in paragraph (3) as in effect on May 8, 2014, but 
applied by treating all references in such regulations 
to ‘foreign country’ and ‘relevant foreign country’ as 
references to ‘the United States’. The Secretary may 
issue regulations decreasing the threshold percent in 
any of the tests under such regulations for deter-
mining if business activities constitute significant 
domestic business activities for purposes of this 
paragraph.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Clause (i) of section 7874(a)(2)(B) of such 
Code is amended by striking ‘‘after March 4, 2003,’’ 
and inserting ‘‘after March 4, 2003, and before May 
9, 2014,’’. 
(2) Subsection (c) of section 7874 of such Code 
is amended— 
(A) in paragraph (2)— 
(i) 
by 
striking 
‘‘subsection 
(a)(2)(B)(ii)’’ and inserting ‘‘subsections 
(a)(2)(B)(ii) and (b)(2)(B)(i)’’, and 
(ii) by inserting ‘‘or (b)(2)(A)’’ after 
‘‘(a)(2)(B)(i)’’ in subparagraph (B), 
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114 
(B) in paragraph (3), by inserting ‘‘or 
(b)(2)(B)(i), as the case may be,’’ after 
‘‘(a)(2)(B)(ii)’’, 
(C) in paragraph (5), by striking ‘‘sub-
section (a)(2)(B)(ii)’’ and inserting ‘‘sub-
sections (a)(2)(B)(ii) and (b)(2)(B)(i)’’, and 
(D) in paragraph (6), by inserting ‘‘or in-
verted domestic corporation, as the case may 
be,’’ after ‘‘surrogate foreign corporation’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years ending after May 
8, 2014. 
PART VI—MISCELLANEOUS PROVISIONS 
SEC. 261. CREDIT FOR HIRING UNEMPLOYED CERTIFIED 
ADVERSELY AFFECTED WORKERS. 
(a) INCLUSION IN WORK OPPORTUNITY CREDIT.— 
Paragraph (1) of section 51(d) of the Internal Revenue 
Code of 1986 is amended by striking ‘‘or’’ at the end of 
subparagraph (I), by striking the period at the end of sub-
paragraph (J) and inserting ‘‘, or’’, and by adding at the 
end the following new subparagraph: 
‘‘(K) a qualified adversely affected energy 
industry unemployed worker.’’. 
(b) DEFINITION
OF QUALIFIED ADVERSELY AF-
FECTED ENERGY INDUSTRY UNEMPLOYED WORKER.— 
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Subsection (d) of section 51 of the Internal Revenue Code 
of 1986 is amended by adding at the end the following 
new paragraph: 
‘‘(16) QUALIFIED ADVERSELY AFFECTED EN-
ERGY INDUSTRY UNEMPLOYED WORKER.—The term 
‘qualified adversely affected energy industry unem-
ployed worker’ means any individual who— 
‘‘(A) is a certified adversely affected work-
er under section 202 of the Clean Energy 
Worker Just Transition Act and whose status 
as such has not been terminated before the date 
the individual begins work for the employer, 
‘‘(B) is certified by the designated local 
agency as— 
‘‘(i) having aggregate periods of un-
employment during the 1-year period end-
ing on the hiring date which equal or ex-
ceed 4 weeks (but less than 6 months), or 
‘‘(ii) having aggregate periods of un-
employment during the 1-year period end-
ing on the hiring date which equal or ex-
ceed 6 months.’’. 
(c) INCREASED CREDIT AMOUNT FOR LONG-TERM 
UNEMPLOYED WORKERS.—Section 51(b)(3) of the Inter-
nal Revenue Code of 1986 is amended— 
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(1) by striking ‘‘and’’ before ‘‘$24,000’’, and 
(2) by inserting ‘‘, and $14,000 per year in the 
case of any individual who is a qualified adversely 
affected energy industry unemployed worker by rea-
son of subsection (d)(16)(B)(ii)’’ after ‘‘subsection 
(d)(3)(A)(ii)(II)’’. 
(d) CREDIT LIMITED TO INDIVIDUALS HIRED FOR 
COMPARABLE OCCUPATION.—Subsection (b) of section 51 
of the Internal Revenue Code of 1986 is amended by add-
ing at the end the following new paragraph: 
‘‘(4) SPECIAL
RULE
FOR
QUALIFIED
AD-
VERSELY
AFFECTED
ENERGY
INDUSTRY
UNEM-
PLOYED
WORKERS.—The term ‘qualified wages’ 
shall not include any wages paid to qualified ad-
versely affected energy industry unemployed worker 
unless the position for which such worker is hired 
for is a comparable occupation as determined under 
section 222 of the Clean Energy Worker Just Tran-
sition Act.’’. 
(e) TERMINATION PROVISION NOT TO APPLY.— 
Paragraph (4) of section 51(c) of the Internal Revenue 
Code of 1986 is amended by adding at the end the fol-
lowing new sentence: ‘‘The preceding sentence shall not 
apply with respect to amounts paid or incurred to qualified 
adversely affected energy industry unemployed workers.’’. 
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(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to individuals who begin work for 
the employer after December 31, 2017. 
SEC. 262. ENFORCEMENT. 
(a) VIOLATIONS.—It shall be a violation of this sub-
title to for any person to— 
(1) make a false statement of a material fact 
knowing it to be false, or knowingly fail to disclose 
a material fact, for the purpose of obtaining or in-
creasing for that person or for any other person any 
payment authorized to be furnished under this sub-
title; or 
(2) make a false statement of a material fact 
knowing it to be false, or knowingly fail to disclose 
a material fact, when providing information to the 
Secretary during an investigation of a petition under 
section 211. 
(b) PENALTIES.—Any person who commits a viola-
tion under subsection (a) shall be imprisoned for not more 
than 1 year, fined under title 18, United States Code, or 
both. 
SEC. 263. BENEFIT INFORMATION TO WORKERS. 
(a) GENERAL INFORMATION.—The Secretary shall 
provide— 
(1) full information to workers about— 
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(A) the adjustment assistance available 
under this subtitle; and 
(B) the petition and application proce-
dures, and the appropriate filing dates, for such 
adjustment assistance; 
(2) whatever assistance is necessary to enable 
groups of workers to prepare petitions or applica-
tions for such adjustment assistance; 
(3) the applicable eligible agency, as defined in 
section 3 of the Carl D. Perkins Career and Tech-
nical Education Act of 2006 (20 U.S.C. 2302), or 
any equivalent agency, and public or private agen-
cies, institutions, and employers, as appropriate, 
with information of each certification issued under 
section 213 and of projections, if available, of the 
needs for training under section 242 as a result of 
such certification; and 
(4) labor organizations and other community 
organizations with funding from the Trust Fund es-
tablished under section 251, to conduct community 
outreach to educate adversely affected workers about 
such adjustment assistance. 
(b) WRITTEN NOTICE TO INDIVIDUALS.—The Sec-
retary shall provide written notice through the mail of the 
adjustment assistance available under this subtitle to each 
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119 
worker whom the Secretary has reason to believe is cov-
ered by a certification under section 213— 
(1) at the time such certification is made, if the 
worker was partially or totally separated, or threat-
ened to become totally or partially separated, from 
the adversely affected employment before such cer-
tification, or 
(2) at the time of the total or partial separa-
tion, or threatened total or partial separation, of the 
worker from the adversely affected employment, if 
paragraph (1) does not apply. 
(c) PUBLISHED NOTICE.—The Secretary shall pub-
lish notice of the adjustment assistance available under 
this subtitle to workers covered by each certification issued 
under section 213 in newspapers of general circulation in 
the areas in which such workers reside. 
(d) NOTIFICATION
TO
DEPARTMENT
OF
COM-
MERCE.—Not later than 60 days after the date of enact-
ment of this Act, and each year thereafter, the Secretary 
shall prepare and submit a report to the Department of 
Commerce on the geographic location and sector impli-
cated by each certification issued under section 213. 
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120 
SEC. 264. AMENDMENT TO SURFACE MINING CONTROL AND 
RECLAMATION ACT OF 1977. 
Section 402(i)(2) of the Surface Mining Control and 
Reclamation Act of 1977 (30 U.S.C. 1232(i)(2)) is 
amended— 
(1) by striking ‘‘Subject to’’ and inserting the 
following: 
‘‘(A) IN GENERAL.—Subject to’’; and 
(2) by adding at the end the following: 
‘‘(B) EXCESS AMOUNTS.— 
‘‘(i) IN GENERAL.—Subject to para-
graph (3), and after all transfers referred 
to in subparagraph (A) and paragraph (1) 
have been made, any amounts remaining 
after the application of paragraph (3)(A) 
(without regard to this subparagraph) shall 
be transferred to the trustees of the 1974 
UMWA Pension Plan and used solely to 
pay pension benefits required under such 
plan. 
‘‘(ii) 1974 UMWA
PENSION
PLAN.— 
For purposes of this subparagraph, the 
term ‘1974 UMWA Pension Plan’ means a 
pension 
plan 
referred 
to 
in 
section 
9701(a)(3) of the Internal Revenue Code 
of 1986 but without regard to whether 
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participation in such plan is limited to in-
dividuals who retired in 1976 and there-
after.’’. 
SEC. 265. REGULATIONS. 
The Secretary shall promulgate regulations to carry 
out this subtitle. 
Subtitle B—Workplace Democracy 
Act 
SEC. 271. SHORT TITLE. 
This subtitle may be cited as the ‘‘Workplace Democ-
racy for a Clean Energy Future’’. 
SEC. 272. STREAMLINING CERTIFICATION FOR LABOR OR-
GANIZATIONS. 
(a) IN GENERAL.—Section 9(c) of the National 
Labor Relations Act (29 U.S.C. 159(c)) is amended by 
adding at the end the following: 
‘‘(6) Notwithstanding any other provision of this sec-
tion, whenever a petition shall have been filed by an em-
ployee or group of employees or any individual or labor 
organization acting in their behalf alleging that a majority 
of employees in a unit appropriate for the purposes of col-
lective bargaining wish to be represented by an individual 
or labor organization for such purposes, the Board shall 
investigate the petition. If the Board finds that a majority 
of the employees in a unit appropriate for bargaining has 
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122 
signed valid authorizations designating the individual or 
labor organization specified in the petition as their bar-
gaining representative and that no other individual or 
labor organization is currently certified or recognized as 
the exclusive representative of any of the employees in the 
unit, the Board shall not direct an election but shall certify 
the individual or labor organization as the representative 
described in subsection (a). 
‘‘(7) The Board shall develop guidelines and proce-
dures for the designation by employees of a bargaining 
representative in the manner described in paragraph (6). 
Such guidelines and procedures shall include— 
‘‘(A) model collective bargaining authorization 
language that may be used for purposes of making 
the designations described in paragraph (6); and 
‘‘(B) procedures to be used by the Board to es-
tablish the validity of signed authorizations desig-
nating bargaining representatives.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) NATIONAL LABOR RELATIONS BOARD.—Sec-
tion 3(b) of the National Labor Relations Act (29 
U.S.C. 153(b)) is amended, in the second sentence— 
(A) by striking ‘‘and to’’ and inserting 
‘‘to’’; and 
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123 
(B) by striking ‘‘and certify the results 
thereof,’’ and inserting ‘‘, and to issue certifi-
cations as provided for in that section,’’. 
(2) UNFAIR LABOR PRACTICES.—Section 8(b) 
of the National Labor Relations Act (29 U.S.C. 
158(b)) is amended— 
(A) in paragraph (7)(B) by striking ‘‘, or’’ 
and inserting ‘‘or a petition has been filed 
under section 9(c)(6), or’’; and 
(B) in paragraph (7)(C) by striking ‘‘when 
such a petition has been filed’’ and inserting 
‘‘when such a petition other than a petition 
under section 9(c)(6) has been filed’’. 
SEC. 273. FACILITATING INITIAL COLLECTIVE BARGAINING 
AGREEMENTS. 
Section 8 of the National Labor Relations Act (29 
U.S.C. 158) is amended by adding at the end the fol-
lowing: 
‘‘(h) Whenever collective bargaining is for the pur-
pose of establishing an initial agreement following certifi-
cation or recognition, the provisions of subsection (d) shall 
be modified as follows: 
‘‘(1) Not later than 10 days after receiving a 
written request for collective bargaining from an in-
dividual or labor organization that has been newly 
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organized or certified as a representative as defined 
in section 9(a), or within such further period as the 
parties agree upon, the parties shall meet and com-
mence to bargain collectively and shall make every 
reasonable effort to conclude and sign a collective 
bargaining agreement. 
‘‘(2) If after the expiration of the 90-day period 
beginning on the date on which bargaining is com-
menced, or such additional period as the parties may 
agree upon, the parties have failed to reach an 
agreement, either party may notify the Federal Me-
diation and Conciliation Service of the existence of 
a dispute and request mediation. Whenever such a 
request is received, it shall be the duty of the Service 
promptly to put itself in communication with the 
parties and to use its best efforts, by mediation and 
conciliation, to bring them to agreement. 
‘‘(3) If after the expiration of the 30-day period 
beginning on the date on which the request for me-
diation is made under paragraph (2), or such addi-
tional period as the parties may agree upon, the 
Service is not able to bring the parties to agreement 
by conciliation, the Service shall refer the dispute to 
an arbitration board established in accordance with 
such regulations as may be prescribed by the Serv-
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ice. The arbitration panel shall render a decision set-
tling the dispute and such decision shall be binding 
upon the parties for a period of 2 years, unless 
amended during such period by written consent of 
the parties.’’. 
Subtitle 
C—Community 
Need- 
Based Economic Transition As-
sistance Program 
SEC. 281. COMMUNITY NEED-BASED ECONOMIC TRANSI-
TION ASSISTANCE PROGRAM. 
(a) ELIGIBLE COUNTY DEFINED.—In this subtitle, 
the term ‘‘eligible county’’ means a county or an Indian 
tribe eligible for assistance under this subtitle— 
(1) in which not less than 35 certified adversely 
affected workers reside; and 
(2) that is certified by the Secretary under sub-
section (b). 
(b) CERTIFICATION.—The Secretary shall certify an 
eligible county not later than 20 days after the date on 
which the Secretary determines that at least 35 workers 
residing in the county are certified adversely affected 
workers. 
(c) NOTIFICATION.—After the Secretary certifies a 
county as an eligible county under this section, the Sec-
retary shall provide notice of the certification— 
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(1) to the county government; or 
(2) if the county does not have a county govern-
ment, to the most localized relevant regional or 
State government. 
(d) APPLICATION.—After the date on which the Sec-
retary certifies a county under this section, the county 
may apply for a grant under each of subsections (a) 
through (c) of section 282 and each of subsections (a) 
through (e) of section 283. 
SEC. 282. ECONOMIC DEVELOPMENT GRANT PROGRAMS. 
(a) APPALACHIAN REGIONAL COMMISSION.— 
(1) IN GENERAL.—The Appalachian Regional 
Commission established by section 14301(a) of title 
40, United States Code (referred to in this sub-
section as the ‘‘Commission’’), shall award grants to 
eligible counties to support economic development 
planning and implementation activities in those 
counties, including— 
(A) developing entrepreneurial ecosystems; 
(B) facilitating access to capital invest-
ments and new markets; and 
(C) addressing barriers relating to ade-
quate water, sewer, and telecommunications in-
frastructure. 
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(2) REGULATIONS; GUIDANCE.—The Commis-
sion may issue such regulations and guidance to 
carry out this subsection as the Commission deter-
mines to be necessary. 
(3) FUNDING.—The Commission shall use to 
carry out this subsection not more than $40,000,000 
for each of fiscal years 2016 through 2025 from the 
Climate Fund. 
(b) ECONOMIC DEVELOPMENT ADMINISTRATION.— 
(1) IN GENERAL.—The Assistant Secretary of 
Commerce for Economic Development (referred to in 
this subsection as the ‘‘Assistant Secretary’’) shall— 
(A) advance and coordinate regional place- 
based innovation efforts for the Federal Gov-
ernment; and 
(B) provide planning and coordination as-
sistance to eligible counties and other Federal 
agencies to assist in economic development ac-
tivities under this subtitle. 
(2) REGULATIONS; GUIDANCE.—The Assistant 
Secretary may issue such regulations and guidance 
to carry out this subsection as the Assistant Sec-
retary determines to be necessary. 
(3) FUNDING.—The Assistant Secretary shall 
use to carry out this subsection not more than 
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$10,000,000 for each of fiscal years 2016 through 
2025 from the Climate Fund. 
(c) NEW DEVELOPMENT AND JOBS IN ABANDONED 
MINE LAND COMMUNITIES.— 
(1) IN GENERAL.—The Director of the Office of 
Surface Mining Reclamation and Enforcement (re-
ferred to in this subsection as the ‘‘Director’’) shall 
award grants to eligible counties for activities relat-
ing to the reclamation of abandoned coal mine land 
sites and associated polluted waters. 
(2) PURPOSE.—The purpose of the grant pro-
gram under this subsection is to promote sustainable 
redevelopment in eligible counties. 
(3) SELECTION.—The Director shall award 
grants based on economic factors, including— 
(A) the unemployment rate in the eligible 
county; 
(B) the amount and severity of problems 
in the eligible county relating to abandoned coal 
mine land and water problems; and 
(C) whether, in the determination of the 
Director, reclamation activities to promote eco-
nomic development would assist the eligible 
county. 
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(4) REGULATIONS; GUIDANCE.—In consultation 
with States, Indian tribes, and other stakeholders, 
the Director may issue such regulations and guid-
ance to carry out this subsection as the Director de-
termines to be necessary. 
(5) FUNDING.—The Director shall use to carry 
out this subsection not more than $250,000,000 for 
each of fiscal years 2016 through 2025 from the Cli-
mate Fund. 
(d) SMALL BUSINESS ADMINISTRATION.— 
(1) IN
GENERAL.—The Administrator of the 
Small Business Administration shall award grants to 
members of disadvantaged communities to support 
entrepreneurial opportunities, such as starting or ex-
panding small businesses or nonprofit organizations 
that— 
(A) promote improvements in energy effi-
ciency; 
(B) design strategies to maximize energy 
efficiency; and 
(C) promote— 
(i) resource conservation and reuse; 
(ii) the installation or construction of 
renewable energy technologies or facilities, 
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130 
such as wind, wave, solar, and geothermal 
energy; and 
(iii) the effective use of existing infra-
structure in affordable housing and eco-
nomic development activities in low-income 
communities and disadvantaged commu-
nities. 
(2) REGULATIONS; GUIDANCE.—The Adminis-
trator of the Small Business Administration may 
issue such regulations and guidance to carry out this 
subsection as the Administrator of the Small Busi-
ness Administration determines to be necessary. 
(3) FUNDING.—The Administrator of the Small 
Business Administration shall use to carry out this 
subsection not more than $50,000,000 for each of 
fiscal years 2018 through 2050 from the Climate 
Fund. 
SEC. 283. NEED-BASED WATER, BROADBAND, AND ELEC-
TRIC GRID INFRASTRUCTURE INVESTMENT 
PROGRAM. 
(a) STATE DRINKING WATER TREATMENT REVOLV-
ING LOAN FUNDS.—The Administrator shall award to eli-
gible counties capitalization grants for the purpose of es-
tablishing a drinking water treatment revolving loan fund 
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under section 1452(a) of the Safe Drinking Water Act (42 
U.S.C. 300j–12(a)). 
(b) WATER INFRASTRUCTURE FINANCE AND INNO-
VATION.—The Administrator shall provide to eligible 
counties long-term, low-interest loans for large water in-
frastructure projects that are not eligible for funding from 
a State revolving loan fund, in accordance with the Water 
Infrastructure Finance and Innovation Act of 2014 (33 
U.S.C. 3901 et seq.). 
(c) BROADBAND INITIATIVES PROGRAM.—The Sec-
retary of Agriculture shall provide to eligible counties 
loans and loan guarantees under the broadband initiatives 
program established under title VI of the Rural Elec-
trification Act of 1936 (7 U.S.C. 950bb et seq.) to expand 
the access to, and quality of, broadband service across the 
rural United States. 
(d) BROADBAND TECHNOLOGY OPPORTUNITIES PRO-
GRAM.—The Assistant Secretary of Commerce for Com-
munications and Information shall award to eligible coun-
ties grants for purposes of the Broadband Technology Op-
portunities Program established under section 6001(a) of 
the American Recovery and Reinvestment Act of 2009 (47 
U.S.C. 1305(a)), including providing access to, and im-
proving, broadband service to underserved areas of the 
United States. 
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132 
(e) ELECTRIC GRID INFRASTRUCTURE.—The Sec-
retary shall award to eligible counties grants for expenses 
necessary for— 
(1) electricity delivery and energy reliability ac-
tivities to modernize the electric grid, including ac-
tivities relating to— 
(A) demand-responsive equipment; 
(B) enhanced security and reliability of en-
ergy infrastructure; 
(C) energy storage research, development, 
demonstration, and deployment; 
(D) facilitating recovery from disruptions 
to the energy supply; and 
(E) high-voltage transmission lines to 
bring utility-scale hydro, wind, solar, and geo-
thermal generation to demand centers; and 
(2) implementation of the programs authorized 
under title XIII of the Energy Independence and Se-
curity Act of 2007 (42 U.S.C. 17381 et seq.). 
(f) GRANT AND LOAN SELECTION AND MANAGE-
MENT.— 
(1) IN GENERAL.—In carrying out this section, 
the Secretary of the Treasury, in consultation with 
the Assistant Secretary of Commerce for Economic 
Development and State and local workforce develop-
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133 
ment boards established under sections 101 and 107 
of the Workforce Innovation and Opportunity Act 
(29 U.S.C. 3111, 3122), shall determine the per-
centage of funds made available to allocate to each 
agency carrying out a loan or grant program under 
subsections (a) through (e). 
(2) SELECTION.—To the maximum extent prac-
ticable, in selecting grant and loan applicants under 
this section, the heads of the agencies carrying out 
the grant and loan programs shall consult and co-
ordinate with the Assistant Secretary of Commerce 
for Economic Development. 
(g) FUNDING.—There shall be used to carry out this 
section from the Climate Fund $7,000,000,000 for the pe-
riod of fiscal years 2016 through 2025. 
TITLE III—GREENING THE GRID 
Subtitle A—Fossil Fuel Phaseout 
SEC. 301. FOSSIL FUEL PHASEOUT. 
(a) IN GENERAL.—Title VI of the Public Utility Reg-
ulatory Policies Act of 1978 (16 U.S.C. 2601 et seq.) is 
amended by adding at the end the following: 
‘‘SEC. 610. FOSSIL FUEL PHASEOUT. 
‘‘(a) DEFINITIONS.—In this section: 
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‘‘(1) ADMINISTRATOR.—The term ‘Adminis-
trator’ means the Administrator of the Environ-
mental Protection Agency. 
‘‘(2) BASE QUANTITY OF ELECTRICITY.—The 
term ‘base quantity of electricity’ means the total 
quantity of electric energy sold by a retail electric 
supplier, expressed in terms of megawatt hours, to 
electric customers for purposes other than resale 
during the most recent calendar year for which in-
formation is available. 
‘‘(3) FOSSIL FUEL ENERGY.—The term ‘fossil 
fuel energy’ means electric energy generated, in 
whole or in part, by a fossil fuel resource. 
‘‘(4) FOSSIL FUEL ENERGY CREDIT.—The term 
‘fossil fuel energy credit’ means a credit issued 
under subsection (f) that represents 1 megawatt 
hour of fossil fuel energy. 
‘‘(5) FOSSIL FUEL RESOURCE.—The term ‘fos-
sil fuel resource’ means coal, oil, gas, oil shale, or 
tar sands. 
‘‘(6) RETAIL ELECTRIC SUPPLIER.— 
‘‘(A) IN GENERAL.—The term ‘retail elec-
tric supplier’ means an entity that sold not less 
than 1,000 megawatt hours of electric energy to 
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135 
electric consumers for purposes other than re-
sale during the preceding calendar year. 
‘‘(B) INCLUSION.—The term ‘retail electric 
supplier’ includes an entity that generates not 
less than 1,000 megawatt hours of electric en-
ergy for use by the entity. 
‘‘(7) RETIRE.—The term ‘retire’, with respect 
to a fossil fuel energy credit, means to disqualify the 
fossil fuel energy credit for any subsequent use 
under this section, including sale, transfer, ex-
change, or submission in satisfaction of a compliance 
obligation. 
‘‘(b) COMPLIANCE.—For calendar year 2022 and 
each calendar year thereafter, each retail electric supplier 
shall meet the requirements of subsections (c) and (d) by 
submitting to the Administrator, not later than April 1 
of the following calendar year, as applicable— 
‘‘(1) for a retail electric supplier that exceeds 
the maximum allowable percentage of fossil fuel en-
ergy generation for the applicable calendar year, as 
determined under subsection (c), a quantity of fossil 
fuel energy credits sufficient to offset that excess, as 
determined and certified by the Administrator; or 
‘‘(2) for a retail electric supplier that does not 
exceed the maximum allowable percentage of fossil 
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fuel energy generation for the applicable calendar 
year, as determined under subsection (c), a certifi-
cation of that compliance, as the Administrator de-
termines to be appropriate. 
‘‘(c) MAXIMUM ALLOWABLE ANNUAL PERCENTAGE 
OF FOSSIL FUEL ENERGY SALES.—For calendar years 
2022 through 2050, in annual increments, the maximum 
annual percentage of the base quantity of electricity of a 
retail electric supplier that may be generated from fossil 
fuel resources, or otherwise credited towards the percent-
age requirement pursuant to subsection (e), shall be the 
applicable percentage specified in the following table: 
‘‘Maximum Allowable Annual Percentage of Fossil Fuel Energy 
Sales 
Calendar Year 
Percentage 
2022 ................................................................................................
70.0
2023 ................................................................................................
67.5
2024 ................................................................................................
65.0
2025 ................................................................................................
62.5
2026 ................................................................................................
60.0
2027 ................................................................................................
57.5
2028 ................................................................................................
55.0
2029 ................................................................................................
52.5
2030 ................................................................................................
50.0
2031 ................................................................................................
47.5
2032 ................................................................................................
45.0
2033 ................................................................................................
42.5
2034 ................................................................................................
40.0
2035 ................................................................................................
37.5
2036 ................................................................................................
35.0
2037 ................................................................................................
32.5
2038 ................................................................................................
30.0
2039 ................................................................................................
27.5
2040 ................................................................................................
25.0
2041 ................................................................................................
22.5
2042 ................................................................................................
20.0
2043 ................................................................................................
17.5
2044 ................................................................................................
15.0
2045 ................................................................................................
12.5
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‘‘Maximum Allowable Annual Percentage of Fossil Fuel Energy 
Sales—Continued 
Calendar Year 
Percentage 
2046 ................................................................................................
10.0
2047 ................................................................................................
7.5
2048 ................................................................................................
5.0
2049 ................................................................................................
2.5
2050 ................................................................................................
0.0. 
‘‘(d) REQUIREMENT FOR 2050 AND THEREAFTER.— 
For calendar year 2050 and each calendar year thereafter, 
a retail electric supplier shall not generate or sell any fossil 
fuel energy. 
‘‘(e) FOSSIL FUEL ENERGY CREDITS.— 
‘‘(1) IN
GENERAL.—A retail electric supplier 
may satisfy the requirements of subsection (b) 
through the submission of fossil fuel energy cred-
its— 
‘‘(A) issued to the retail electric supplier 
under subsection (f); or 
‘‘(B) obtained by purchase, transfer, or ex-
change under subsection (g), subject to any 
emissions 
adjustment 
under 
subsection 
(f)(3)(B). 
‘‘(2) LIMITATION.—A fossil fuel energy credit 
may be counted toward compliance with subsection 
(b) only once. 
‘‘(f) ISSUANCE
OF FOSSIL FUEL ENERGY CRED-
ITS.— 
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‘‘(1) IN GENERAL.—Not later than 1 year after 
the date of enactment of this section, the Adminis-
trator shall establish by rule a program— 
‘‘(A) to verify and issue fossil fuel energy 
credits to retail electric suppliers; 
‘‘(B) to track the sale, transfer, exchange, 
carry over, and retirement of fossil fuel energy 
credits; and 
‘‘(C) to enforce the requirements of this 
section. 
‘‘(2) APPLICATION.— 
‘‘(A) IN GENERAL.—To continue selling or 
generating fossil fuel energy as a retail electric 
supplier, or otherwise to be issued fossil fuel en-
ergy credits, a retail electric supplier shall sub-
mit to the Administrator an application for the 
issuance of fossil fuel energy credits. 
‘‘(B) CONTENTS.—The application under 
subparagraph (A) shall indicate— 
‘‘(i) the quantity of electric energy 
sold to electric consumers, expressed in 
megawatt hours of electric energy, for pur-
poses other than resale during the pre-
ceding calendar year; 
‘‘(ii) if applicable— 
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‘‘(I) the total quantity of electric 
energy generated by the retail electric 
supplier for use by the retail electric 
supplier; 
‘‘(II) the type and quantity of 
each energy resource that is used to 
produce any energy sold to electric 
consumers or used by the retail elec-
tric supplier; and 
‘‘(III) the location at which the 
fossil fuel energy will be produced; 
and 
‘‘(iii) any other information the Ad-
ministrator determines to be appropriate. 
‘‘(3) QUANTITY
OF
FOSSIL
FUEL
ENERGY 
CREDITS.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graphs (B) through (D), the Administrator 
shall issue a quantity of fossil fuel energy cred-
its for a calendar year that is equal to the 
amount by which fossil fuel energy sales have 
been reduced during the period beginning on 
January 1, 2000, and ending on December 31 
of the preceding calendar year. 
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‘‘(B) MAXIMUM QUANTITY.—On approval 
of an application under paragraph (2), the max-
imum quantity of fossil fuel energy credits that 
may be issued by the Administrator to any re-
tail electric supplier for a calendar year shall be 
equal to a quantity of fossil fuel energy credits 
equal to the difference between— 
‘‘(i) the maximum annual percentage 
of fossil fuel energy sales, expressed in 
megawatt hours, for the applicable cal-
endar year; and 
‘‘(ii) the actual quantity, expressed in 
megawatt hours, of fossil fuel energy sold 
by the retail electric supplier during the 
applicable calendar year. 
‘‘(C) EMISSIONS ADJUSTMENT.— 
‘‘(i) IN GENERAL.—The Administrator 
may adjust the calculation of the actual 
quantity of fossil fuel energy generation by 
setting standard emissions factors based 
on the lifecycle greenhouse gas emissions 
of specific types of fossil fuel energy-gener-
ating facilities. 
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141 
‘‘(ii) LIFECYCLE EMISSIONS OF NON- 
FOSSIL ENERGY RESOURCES.—The Admin-
istrator shall— 
‘‘(I) evaluate the lifecycle emis-
sions of non-fossil energy resources, 
including upstream emissions such as 
greenhouse gas emissions associated 
with mining; and 
‘‘(II) reduce any allocation of 
credits on the basis of that lifecycle 
evaluation. 
‘‘(D) LIMITATION.— 
‘‘(i) IN
GENERAL.—This paragraph 
applies only to retail electric suppliers that 
do not sell or generate fossil fuel energy in 
excess of the maximum allowable annual 
percentage of fossil fuel energy generation 
for the applicable calendar year, as deter-
mined under subsection (c). 
‘‘(ii) 
PROHIBITION.—The 
Adminis-
trator may not issue a fossil fuel energy 
credit for a calendar year to any retail 
electric supplier that exceeds the maximum 
allowable annual percentage of fossil fuel 
energy sales for that calendar year. 
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‘‘(4) CREDIT BANKING.—A fossil fuel energy 
credit for any calendar year that is not submitted to 
comply with the maximum allowable percentage of 
fossil fuel energy requirement of subsection (c) for 
that calendar year may be carried forward for use 
in accordance with this section within the next 5 
years, but not later than 2049. 
‘‘(g) FOSSIL FUEL ENERGY CREDIT TRADING.— 
‘‘(1) IN GENERAL.—A fossil fuel energy credit 
for any calendar year before 2050 that is not sub-
mitted to comply with the maximum allowable per-
centage of fossil fuel energy requirement of sub-
section (c) for that calendar year may be sold, trans-
ferred, or exchanged by the retail electric supplier to 
which the fossil fuel energy credit is issued or by any 
other retail electric supplier that acquires the fossil 
fuel energy credit. 
‘‘(2) LIMITATIONS.— 
‘‘(A) IN GENERAL.—The sale, transfer, or 
exchange of fossil fuel energy credits may only 
occur between retail electric suppliers. 
‘‘(B) RIGHTS.—A retail electric supplier 
shall be the only entity that may obtain legal 
rights to a fossil fuel energy credit. 
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143 
‘‘(C) 
HOTSPOTS.—The 
Administrator 
shall— 
‘‘(i) evaluate trading to determine if 
trading results in the unsafe concentration 
of pollution in any area to any population; 
and 
‘‘(ii) if any unsafe concentration of 
pollution is identified, halt the sale of cred-
its to entities— 
‘‘(I) within the identified area; or 
‘‘(II) that purchase electricity 
from a facility that would exacerbate 
pollution in the identified area, as de-
termined by the Administrator. 
‘‘(3) DELEGATION.—The Administrator may 
delegate to an appropriate market-making entity the 
administration of a national tradeable fossil fuel en-
ergy credit market for purposes of creating a trans-
parent national market for the sale or trade of fossil 
fuel energy credits. 
‘‘(h) FOSSIL FUEL ENERGY CREDIT RETIREMENT.— 
‘‘(1) IN GENERAL.—Any retail electric supplier 
that obtains legal rights to a fossil fuel energy credit 
may retire the fossil fuel energy credit in any cal-
endar year. 
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‘‘(2) USE OF RETIRED FOSSIL FUEL ENERGY 
CREDIT.—A fossil fuel energy credit retired under 
paragraph (1) may not be used for compliance with 
subsection (b) in— 
‘‘(A) the calendar year in which the fossil 
fuel energy credit is retired; or 
‘‘(B) any subsequent calendar year. 
‘‘(i) INFORMATION
COLLECTION.—The Adminis-
trator may collect the information necessary to verify and 
audit— 
‘‘(1) the annual fossil fuel energy sales or gen-
eration of any retail electric supplier; 
‘‘(2) a fossil fuel energy credit submitted by a 
retail electric supplier pursuant to subsection (b)(1); 
‘‘(3) the validity of a fossil fuel energy credit 
submitted for compliance by a retail electric supplier 
to the Administrator; and 
‘‘(4) the quantity of electricity sales of all retail 
electric suppliers. 
‘‘(j) STATE PROGRAMS.— 
‘‘(1) IN GENERAL.—Nothing in this section di-
minishes any authority of a State or political sub-
division of a State— 
‘‘(A) to adopt or enforce any law (includ-
ing regulations) respecting electricity; or 
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‘‘(B) to regulate an electric utility. 
‘‘(2) COMPLIANCE WITH SECTION.—No law or 
regulation of a State or political subdivision of a 
State shall relieve any electric utility from compli-
ance with any requirement otherwise applicable 
under this section. 
‘‘(k) REGULATIONS.—Not later than 1 year after the 
date of enactment of this section, the Administrator shall 
promulgate regulations to implement this section. 
‘‘(l) ENFORCEMENT.— 
‘‘(1) CIVIL PENALTY.— 
‘‘(A) IN GENERAL.—A retail electric sup-
plier that fails to comply with subsection (b) 
shall be liable for a civil penalty, assessed by 
the Administrator, in an amount that is equal 
to twice the average value of the aggregate 
quantity of fossil fuel energy credits that the re-
tail electric supplier failed to submit in violation 
of that subsection, as determined by the Admin-
istrator. 
‘‘(B) ENFORCEMENT.—The Administrator 
shall assess any civil penalty under subpara-
graph (A). 
‘‘(C) DEPOSIT.—With respect to any civil 
penalty paid to the Administrator pursuant to 
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subparagraph (A), the Administrator shall de-
posit the amount in the Climate Fund estab-
lished by section 702(a) of the 100 by ’50 Act. 
‘‘(2) INJUNCTION.—After calendar year 2050, 
the Administrator may issue an injunction on the 
purchase or generation of fossil fuel energy by a re-
tail electric supplier.’’. 
(b) TABLE OF CONTENTS AMENDMENT.—The table 
of contents of the Public Utility Regulatory Policies Act 
of 1978 (16 U.S.C. prec. 2601) is amended by adding at 
the end of the items relating to title VI the following: 
‘‘Sec. 609. Rural and remote communities electrification grants. 
‘‘Sec. 610. Fossil fuel phaseout.’’. 
Subtitle B—Enhancing Grid 
Reliability 
SEC. 311. ENHANCING GRID RELIABILITY. 
(a) ENERGY STORAGE AND DISPATCHABLE ENERGY 
GRANT PROGRAM.— 
(1) ESTABLISHMENT.—The Secretary shall es-
tablish a competitive grant program for utility-scale 
demonstration projects for energy storage and 
dispatchable concentrated solar thermal, geothermal, 
and ocean power energy technologies, or other 
emerging dispatchable technologies, as identified by 
the Secretary. 
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(2) FEDERAL
COST
SHARE.—The Secretary 
may provide a grant under this subsection in an 
amount that is equal to not more than 20 percent 
of the total costs incurred in connection with the de-
velopment, construction, acquisition of components 
for, or engineering of a demonstration project re-
ferred to in paragraph (1). 
(3) NO
OWNERSHIP
INTEREST.—The United 
States shall hold no equity or other ownership inter-
est in a qualified advanced electric transmission 
manufacturing plant or qualified advanced electric 
transmission property for which funds are provided 
under this subsection. 
(4) FUNDING.—The Secretary shall use to 
carry 
out 
this 
subsection 
not 
more 
than 
$10,000,000,000 for each fiscal year from the Cli-
mate Fund. 
(b) INTERSTATE COMPETITIVE RENEWABLE ENERGY 
ZONES.—The Federal Power Act is amended by inserting 
after section 216 (16 U.S.C. 824p) the following: 
‘‘SEC. 216A. INTERSTATE COMPETITIVE RENEWABLE EN-
ERGY ZONES. 
‘‘(a) PURPOSES.—The purposes of this section are— 
‘‘(1) to provide greater certainty for— 
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‘‘(A) renewable energy project developers 
by encouraging preconstruction capacity com-
mitments by transmitting utilities; and 
‘‘(B) transmitting utilities by encouraging 
preconstruction financial commitments from 
project developers; and 
‘‘(2) to expedite transmission and renewable en-
ergy generation projects through Federal permitting 
processes. 
‘‘(b) DEFINITIONS.—In this section: 
‘‘(1) COMMISSION.—The term ‘Commission’ 
means the Federal Energy Regulatory Commission. 
‘‘(2) RENEWABLE
ENERGY
PROJECT
DEVEL-
OPER.—The term ‘renewable energy project devel-
oper’ means an entity that is responsible for siting 
renewable energy generation projects, as identified 
by the Commission. 
‘‘(3) SECRETARY.—The term ‘Secretary’ means 
the Secretary of Energy. 
‘‘(4) ZONE.—The term ‘zone’ means an inter-
state competitive renewable energy zone established 
under subsection (c)(1). 
‘‘(c) RENEWABLE ENERGY ZONES.— 
‘‘(1) ESTABLISHMENT.—Not later than 180 
days after the date of conclusion of the consultation 
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required under paragraph (2), after providing public 
notice and an opportunity to comment, the Commis-
sion, in coordination with the Secretary, shall estab-
lish zones, to be known as ‘interstate competitive re-
newable energy zones’, in accordance with the pur-
poses described in subsection (a)— 
‘‘(A) to expedite— 
‘‘(i) the construction of interstate 
transmission facilities; and 
‘‘(ii) transmission facilities crossing 2 
or more grid interconnections; and 
‘‘(B) to facilitate the deployment of renew-
able energy resources in areas in which renew-
able energy resources and suitable land areas 
are sufficient to develop generating capacity. 
‘‘(2) CONSULTATION.—During the 2-year pe-
riod beginning on the date of enactment of this sec-
tion, the Commission, in coordination with the Sec-
retary and the heads of other relevant Federal agen-
cies, shall carry out appropriate consultation with 
States and Indian tribes (or any entity designated 
by a State or Indian tribe), Federal power mar-
keting agencies, Transmission Organizations, trans-
mitting utilities, and renewable energy project devel-
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opers with respect to identifying appropriate loca-
tions for zones— 
‘‘(A) in accordance with the purposes de-
scribed in paragraph (1); 
‘‘(B) taking into consideration reliability, 
congestion, cybersecurity, environmental im-
pact, and cost effectiveness; and 
‘‘(C) in a manner that ensures that the 
processing and permitting of renewable energy 
facilities and transmission facilities comply with 
applicable requirements of Federal law. 
‘‘(3) IDENTIFICATION OF GRID-PLANNING ENTI-
TIES.—Not later than 90 days after the date of con-
clusion of the consultation required under paragraph 
(2), any entity described in that paragraph that in-
tends to support the purposes described in sub-
section (a) in the grid planning activities of the enti-
ty shall submit to the Commission a notice of that 
intent. 
‘‘(d) PRECONSTRUCTION COMMITMENTS.—Not later 
than 90 days after the date of establishment of the zones 
under subsection (c)(1), the Commission, in coordination 
with each relevant grid-planning entity identified under 
subsection (c)(3), shall solicit participation of, and con-
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vene, interested stakeholders within each zone for pur-
poses of— 
‘‘(1) construction planning; and 
‘‘(2) encouraging— 
‘‘(A) financial commitments by renewable 
energy project developers to transmitting utili-
ties; and 
‘‘(B) commitments of transmission access 
by transmitting utilities to renewable energy 
project developers. 
‘‘(e) CONSTRUCTION PLANNING.—Not later than 180 
days after the date of establishment of the zones under 
subsection (c)(1), the Commission, in coordination with 
each relevant grid-planning entity identified under sub-
section (c)(3), shall develop a plan for each zone relating 
to construction of the transmission capacity necessary to 
deliver to electric customers, in a manner that is most ben-
eficial and cost-effective to the customers, the renewable 
electricity generation capacity within the zone. 
‘‘(f) COORDINATION WITH STATE AND REGIONAL 
PLANNING PROCESSES.—The Commission shall provide 
support for, and may participate as requested in, State 
and regional grid planning processes that, as determined 
by the Commission, will expedite the construction of intra-
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state transmission lines to facilitate the deployment of re-
newable energy resources.’’. 
Subtitle C—Making Clean and 
Renewable Energy Affordable 
PART I—REDUCING CARBON POLLUTION AND 
CREATING JOBS BY TRANSITIONING TO SUS-
TAINABLE ENERGY SOURCES 
SEC. 321. EXTENSION AND MODIFICATION OF CREDITS 
WITH RESPECT TO FACILITIES PRODUCING 
ENERGY FROM CERTAIN RENEWABLE RE-
SOURCES. 
(a) PERMANENT EXTENSION FOR CERTAIN FACILI-
TIES.—Section 45(d) of the Internal Revenue Code of 
1986 is amended— 
(1) in paragraph (4), by striking ‘‘and which’’ 
and all that follows through the period and inserting 
the following: ‘‘and, in the case of a facility using 
solar energy, which is placed in service before Janu-
ary 1, 2006.’’, 
(2) in paragraph (6), by striking ‘‘and the con-
struction of which begins before January 1, 2017’’, 
(3) in paragraph (7), by striking ‘‘and the con-
struction of which begins before January 1, 2017’’, 
(4) in paragraph (9)(A)— 
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(A) in clause (i), by striking ‘‘and before 
January 1, 2017’’, and 
(B) in clause (ii), by striking ‘‘and the con-
struction of which begins before January 1, 
2017’’, and 
(5) in paragraph (11)(B), by striking ‘‘and the 
construction of which begins before January 1, 
2017’’. 
(b) EXTENSION FOR WIND FACILITIES.— 
(1) IN GENERAL.—Section 45(d)(1) of the In-
ternal Revenue Code of 1986 is amended by striking 
‘‘January 1, 2020’’ and inserting ‘‘January 1, 
2034’’. 
(2) MODIFICATION OF PHASEOUT.—Paragraph 
(5) of section 45(b) of such Code is amended— 
(A) by striking ‘‘and’’ at the end of sub-
paragraph (B), 
(B) by striking ‘‘January 1, 2020, 60 per-
cent.’’ in subparagraph (C) and inserting ‘‘Jan-
uary 1, 2031, 60 percent, and’’, and 
(C) by adding at the end the following new 
subparagraph: 
‘‘(D) in the case of any facility the con-
struction of which begins after December 31, 
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2030, and before January 1, 2034, 80 per-
cent.’’. 
(c) EXTENSION OF ELECTION TO TREAT QUALIFIED 
FACILITIES OTHER THAN BIOMASS FACILITIES AS EN-
ERGY PROPERTY.— 
(1) IN GENERAL.—Section 48(a)(5)(C) of the 
Internal Revenue Code of 1986 is amended— 
(A) by striking ‘‘and the construction of 
which begins before January 1, 2017 (January 
1, 2020, in the case of any facility which is de-
scribed in paragraph (1) of section 45(d))’’ in 
clause (ii), and 
(B) by adding at the end the following new 
flush sentence: 
‘‘Such term shall not include any facility de-
scribed in section 45(d)(1) the construction of 
which begins after December 31, 2033.’’. 
(2) EXCLUSION
OF
BIOMASS
FACILITIES.— 
Clause (i) of section 48(a)(5)(C) of such Code is 
amended by striking ‘‘(2), (3),’’. 
(3) MODIFICATION OF PHASEOUT PERCENTAGE 
FOR WIND FACILITIES.—Subparagraph (E) of sec-
tion 48(a)(5) of such Code is amended— 
(A) by striking ‘‘and’’ at the end of clause 
(ii), 
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(B) by striking ‘‘January 1, 2020, 60 per-
cent.’’ in clause (iii) and inserting ‘‘January 1, 
2031, 60 percent, and’’, and 
(C) by adding at the end the following new 
clause: 
‘‘(d) in the case of any facility the 
construction of which begins after Decem-
ber 31, 2030, and before January 1, 2034, 
80 percent.’’. 
(d) EFFECTIVE DATES.—The amendments made by 
this section shall take effect on January 1, 2017. 
SEC. 322. EXTENSION AND MODIFICATION OF ENERGY 
CREDIT. 
(a) PERMANENT EXTENSION FOR CERTAIN PROP-
ERTY.—Section 48 of the Internal Revenue Code of 1986 
is amended— 
(1) in subsection (a)(3)(A)— 
(A) in clause (ii), by striking ‘‘but only 
with respect to periods ending before January 
1, 2017’’, and 
(B) in clause (vii), by striking ‘‘, but only 
with respect to periods ending before January 
1, 2017’’, and 
(2) in subsection (c)— 
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(A) in paragraph (1), by striking subpara-
graph (D), 
(B) in paragraph (2), by striking subpara-
graph (D), 
(C) in paragraph (3)(A), by inserting 
‘‘and’’ at the end of clause (ii), by striking ‘‘, 
and’’ at the end of clause (iii) and inserting a 
period, and by striking clause (iv), and 
(D) in paragraph (4), by striking subpara-
graph (C). 
(b) SOLAR ENERGY PROPERTY.— 
(1) EXTENSION.—Section 48(a)(2)(A)(i)(II) of 
the Internal Revenue Code of 1986 is amended by 
striking ‘‘January 1, 2022’’ and inserting ‘‘January 
1, 2034’’. 
(2) MODIFICATION
OF
PHASEOUT.—Subpara-
graph (A) of section 48(a)(6) of the Internal Rev-
enue Code of 1986 is amended— 
(A) by striking ‘‘and’’ at the end of clause 
(i), 
(B) by striking ‘‘January 1, 2022, 22 per-
cent.’’ in clause (ii) and inserting ‘‘January 1, 
2030, 22 percent’’, and 
(C) by adding at the end the following new 
clauses: 
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157 
‘‘(i) in the case of any facility the con-
struction of which begins after December 
31, 2030, and before January 1, 2032, 18 
percent, and 
‘‘(ii) in the case of any facility the 
construction of which begins after Decem-
ber 31, 2031, and before January 1, 2034, 
14 percent.’’. 
(c) EXTENSION OF 30-PERCENT INVESTMENT CRED-
IT FOR OFFSHORE WIND ENERGY FACILITIES.— 
(1) IN GENERAL.— 
(A) IN
GENERAL.—Clause (i) of section 
48(a)(2)(A) of the Internal Revenue Code of 
1986 is amended by striking ‘‘and’’ at the end 
of subclause (IV) and by adding at the end the 
following new subclause: 
‘‘(V) qualified offshore wind en-
ergy property, and’’. 
(B) QUALIFIED OFFSHORE WIND ENERGY 
PROPERTY DEFINED.—Subsection (c) of section 
48 of such Code is amended by adding at the 
end the following new paragraph: 
‘‘(5) QUALIFIED
OFFSHORE
WIND
ENERGY 
PROPERTY.— 
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‘‘(A) IN
GENERAL.—The term ‘qualified 
offshore wind energy property’ means property 
which is part of a qualified offshore wind facil-
ity. 
‘‘(B) QUALIFIED OFFSHORE WIND FACIL-
ITY.—For purposes of subparagraph (A), the 
term ‘qualified offshore wind facility’ means 
any facility which— 
‘‘(i) uses wind to generate electricity, 
and 
‘‘(ii) is located in— 
‘‘(I) the inland navigable waters 
of the United States, including the 
Great Lakes, or 
‘‘(II) the coastal waters of the 
United States, including the territorial 
seas of the United States, the exclu-
sive economic zone of the United 
States, and the outer Continental 
Shelf of the United States.’’. 
(C) CONFORMING AMENDMENT.—Subpara-
graph (A) of section 48(a)(3) of such Code is 
amended by striking ‘‘or’’ at the end of clause 
(vi), by inserting ‘‘or’’ at the end of clause (vii), 
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159 
and by adding at the end the following new 
clause: 
‘‘(viii) qualified offshore wind energy 
property,’’. 
(D) COORDINATION
WITH
CREDIT
FOR 
OTHER WIND FACILITIES.—Section 48(a)(5)(C) 
of such Code is amended by adding at the end 
the following new sentence: 
‘‘Such term shall not include any facility which 
is a qualified offshore wind facility (as defined 
in subsection (c)(5)).’’. 
(d) LIMITATION ON CREDIT FOR ONSHORE WIND 
FACILITIES.—Subparagraph (A) of section 48(a)(5) of the 
Internal Revenue Code of 1986 is amended to read as fol-
lows: 
‘‘(E) LIMITATION FOR ONSHORE WIND FA-
CILITIES.—In the case of a qualified investment 
credit facility described in section 45(d)(1), the 
credit otherwise determined under the section 
with respect to qualified property which is part 
of such facility shall not exceed an amount 
equal to $200 for each kilowatt hour of capacity 
of such facility.’’. 
(e) CREDIT FOR QUALIFIED ELECTRICAL TRANS-
MISSION PROPERTY.— 
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160 
(1) IN GENERAL.—Section 48(a)(3)(A) of the 
Internal Revenue Code of 1986 is amended by add-
ing at the end the following: 
‘‘(viii) qualified electrical transmission 
property.’’. 
(2) QUALIFIED
ELECTRICAL
TRANSMISSION 
PROPERTY.—Section 48(c) of the Internal Revenue 
Code of 1986, as amended by subsection (c), is 
amended by adding at the end the following new 
paragraph: 
‘‘(6) QUALIFIED
ELECTRICAL
TRANSMISSION 
PROPERTY.—The term ‘qualified electrical trans-
mission property’ means an interstate electrical 
transmission system, including technologies listed in 
section 1223 of the Energy Policy Act of 2005, 
which is capable of carrying or transmitting at least 
69 kilovolts.’’. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service in 
taxable year beginning after the date of the enactment of 
this Act. 
(g) EFFECTIVE DATE.—The amendments made by 
this section shall apply to periods after December 31, 
2016, under rules similar to the rules of section 48(m) 
of the Internal Revenue Code of 1986 (as in effect on the 
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161 
day before the date of the enactment of the Revenue Rec-
onciliation Act of 1990). 
SEC. 323. PERMANENT EXTENSION OF QUALIFYING AD-
VANCED ENERGY PROJECT CREDIT. 
(a) IN GENERAL.—Section 48C(d)(1)(B) of the In-
ternal Revenue Code of 1986 is amended— 
(1) by inserting ‘‘in any calendar year’’ after 
‘‘allocated under the program’’, and 
(2) by striking ‘‘$2,300,000,000’’ and inserting 
‘‘$1,000,000,000’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 48C(d)(2)(A) of such Code is 
amended by striking ‘‘during the 2-year period be-
ginning on the date the Secretary establishes the 
program under paragraph (1)’’. 
(2) Section 48C(d)(4) of such Code is amended 
by striking subparagraphs (A) and (B) and inserting 
the following: 
‘‘(A) REVIEW.—Not later than 4 years 
after the close of any calendar year for which 
allocations were made under this section, the 
Secretary shall review the credits allocated 
under this section for such calendar year. 
‘‘(B) 
REDISTRIBUTION.—The 
Secretary 
may reallocate credits awarded under this sec-
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162 
tion for a calendar year if the Secretary deter-
mines that any certification made pursuant to 
paragraph (2) has been revoked pursuant to 
paragraph (2)(B) because the project subject to 
the certification has been delayed as a result of 
third-party opposition or litigation to the pro-
posed project.’’. 
(3) Section 48C(d)(4)(C) of such Code is 
amended by striking ‘‘the Secretary is authorized to 
conduct an additional program for applications for 
certification’’ and inserting ‘‘notwithstanding para-
graph (2)(A), the Secretary is authorized to accept 
additional applications for certification with respect 
to such amounts.’’. 
SEC. 324. PROMOTING ACCESS TO RENEWABLE ENERGY 
AND ENERGY EFFICIENCY FOR TAX-EXEMPT 
ORGANIZATIONS. 
(a) IN GENERAL.—Upon application, the Secretary 
of the Treasury shall, subject to the requirements of this 
section, provide a grant to each eligible entity who places 
in service specified energy property to reimburse such per-
son for a portion of the expense of such property as pro-
vided in subsection (b). No grant shall be made under this 
section with respect to any property unless such property 
is placed in service after 2016. 
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(b) GRANT AMOUNT.— 
(1) IN GENERAL.—The amount of the grant 
under subsection (a) with respect to any specified 
energy property shall be the applicable percentage of 
the basis of such property. 
(2) APPLICABLE PERCENTAGE.—For purposes 
of paragraph (1), the term ‘‘applicable percentage’’ 
means— 
(A) 30 percent in the case of any property 
described in paragraphs (1) through (4) of sub-
section (d), and 
(B) 10 percent in the case of any other 
property. 
(3) LIMITATIONS.—In the case of property de-
scribed in paragraph (1), (2), (3), (6), or (7) of sub-
section (d), the amount of any grant under this sec-
tion with respect to such property shall not exceed 
the limitation described in section 48(a)(5)(E), 
48(a)(6), 48(c)(1)(B), 48(c)(2)(B), or 48(c)(3)(B) of 
the Internal Revenue Code of 1986, respectively, 
with respect to such property. 
(c) TIME FOR PAYMENT OF GRANT.—The Secretary 
of the Treasury shall make payment of any grant under 
subsection (a) during the 60-day period beginning on the 
later of— 
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(1) the date of the application for such grant, 
or 
(2) the date the specified energy property for 
which the grant is being made is placed in service. 
(d) SPECIFIED ENERGY PROPERTY.—For purposes 
of this section, the term ‘‘specified energy property’’ 
means any of the following: 
(1) QUALIFIED
FACILITIES.—Any qualified 
property (as defined in section 48(a)(5)(D) of the 
Internal Revenue Code of 1986) which is part of a 
qualified facility (within the meaning of section 45 
of such Code) described in paragraph (1), (4), (6), 
(7), (9), or (11) of section 45(d) of such Code. 
(2) QUALIFIED
FUEL
CELL
PROPERTY.—Any 
qualified fuel cell property (as defined in section 
48(c)(1) of such Code). 
(3) SOLAR PROPERTY.—Any property described 
in clause (i) or (ii) of section 48(a)(3)(A) of such 
Code. 
(4) QUALIFIED
SMALL
WIND
ENERGY
PROP-
ERTY.—Any qualified small wind energy property 
(as defined in section 48(c)(4) of such Code). 
(5) GEOTHERMAL
PROPERTY.—Any property 
described in clause (iii) of section 48(a)(3)(A) of 
such Code. 
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165 
(6) QUALIFIED
MICROTURBINE
PROPERTY.— 
Any qualified microturbine property (as defined in 
section 48(c)(2) of such Code). 
(7) COMBINED
HEAT
AND
POWER
SYSTEM 
PROPERTY.—Any combined heat and power system 
property (as defined in section 48(c)(3) of such 
Code). 
(8) GEOTHERMAL
HEAT
PUMP
PROPERTY.— 
Any property described in clause (vii) of section 
48(a)(3)(A) of such Code. 
Such term shall not include any property unless deprecia-
tion (or amortization in lieu of depreciation) is allowable 
with respect to such property. 
(e) APPLICATION OF CERTAIN RULES.—In making 
grants under this section, the Secretary of the Treasury 
shall apply rules similar to the rules of section 50 of the 
Internal Revenue Code of 1986 (other than subsection 
(b)(3) thereof). In applying such rules, if the property is 
disposed of, or otherwise ceases to be specified energy 
property, the Secretary of the Treasury shall provide for 
the recapture of the appropriate percentage of the grant 
amount in such manner as the Secretary of the Treasury 
determines appropriate. 
(f) ELIGIBLE ENTITY.—For purposes of this section, 
the term ‘‘eligible entity’’ means any organization de-
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scribed in section 501(c) of the Internal Revenue Code of 
1986 and exempt from tax under section 501(a) of such 
Code. 
(g) DEFINITIONS.—Terms used in this section which 
are also used in section 45 or 48 of the Internal Revenue 
Code of 1986 shall have the same meaning for purposes 
of this section as when used in such section 45 or 48. 
Any reference in this section to the Secretary of the Treas-
ury shall be treated as including the Secretary’s delegate. 
(h) APPROPRIATIONS.—There is hereby appropriated 
to the Secretary of the Treasury such sums as may be 
necessary to carry out this section. 
PART II—SAVING CONSUMERS AND BUSINESSES 
MONEY BY PROMOTING ENERGY EFFICIENCY 
SEC. 326. PERMANENT EXTENSION OF ENERGY EFFICIENT 
COMMERCIAL BUILDINGS DEDUCTION. 
(a) IN GENERAL.—Section 179D of the Internal Rev-
enue Code of 1986 is amended by striking subsection (h). 
(b) UPDATE OF STANDARD.— 
(1) IN GENERAL.—Section 179D of the Inter-
nal Revenue Code of 1986 is amended by striking 
‘‘Standard 90.1-2007’’ each place it appears and in-
serting ‘‘the applicable ASHRAE standard’’. 
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167 
(2) APPLICABLE ASHRAE STANDARD.—Section 
179D(c)(2) of such Code is amended to read as fol-
lows: 
‘‘(2) APPLICABLE
ASHRAE
STANDARD.—The 
term ‘applicable ASHRAE standard’ means— 
‘‘(A) Standard 90.1–2013 of the American 
Society of Heating, Refrigerating, and Air Con-
ditioning Engineers and the Illuminating Engi-
neering Society of North America, or 
‘‘(B) in the case of any subsequent stand-
ard adopted by the American Society of Heat-
ing, Refrigerating, and Air Conditioning Engi-
neers which supersedes the standard described 
in subparagraph (A), such subsequent stand-
ard.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2016. 
SEC. 327. PERMANENT EXTENSION OF NEW ENERGY EFFI-
CIENT HOME CREDIT. 
(a) IN GENERAL.—Section 45L of the Internal Rev-
enue Code of 1986 is amended by striking subsection (g). 
(b) UPDATE OF STANDARD.— 
(1) IN GENERAL.—Section 45L of the Internal 
Revenue Code of 1986 is amended by striking ‘‘the 
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standards of chapter 4 of the 2006 International 
Energy Conservation Code, as such Code (including 
supplements) is in effect on January 1, 2006’’ each 
place it appears and inserting ‘‘the applicable stand-
ards’’. 
(2) APPLICABLE STANDARDS.—Section 45L of 
such Code, as amended by subsection (a), is amend-
ed by adding at the end the following new sub-
section: 
‘‘(g) APPLICABLE STANDARDS.—For purposes of this 
section, the term ‘applicable standards’ means, with re-
spect to any dwelling unit, the standards in effect for resi-
dential building energy efficiency under the International 
Energy Conservation Code on the first day of the taxable 
year in which construction for the dwelling unit com-
menced.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to homes acquired after December 
31, 2016. 
SEC. 328. PERMANENT EXTENSION AND REFUNDABILITY 
OF 
CREDIT 
FOR 
NONBUSINESS 
ENERGY 
PROPERTY. 
(a) PERMANENT EXTENSION.—Section 25C of the 
Internal Revenue Code of 1986 is amended by striking 
subsection (g). 
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169 
(b) UPDATE OF STANDARDS.— 
(1) QUALIFIED ENERGY EFFICIENCY IMPROVE-
MENTS.— 
(A) IN GENERAL.—Section 25C(c)(2)(C) of 
the Internal Revenue Code of 1986 is amended 
by striking ‘‘the prescriptive criteria for such 
component established by the 2009 Inter-
national Energy Conservation Code, as such 
Code (including supplements) is in effect on the 
date of the enactment of the American Recov-
ery and Reinvestment Tax Act of 2009’’ and in-
serting ‘‘the applicable IECC standards’’. 
(B) APPLICABLE IECC STANDARDS.—Sec-
tion 25C(c) of such Code is amended by adding 
at the end the following new paragraph: 
‘‘(5) APPLICABLE IECC STANDARDS.—For pur-
poses of this section, the term ‘applicable IECC 
standards’ means, with respect to any building enve-
lope component, the prescriptive criteria for such 
component in effect under the International Energy 
Conservation Code on the first day of the taxable 
year for which the credit is allowed.’’. 
(2) ENERGY EFFICIENT PROPERTY.— 
(A) 
HEAT
PUMPS
AND
AIR
CONDI-
TIONERS.— 
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(i) IN GENERAL.—Section 25C(d)(3) 
of the Internal Revenue Code of 1986 is 
amended by striking ‘‘the Consortium for 
Energy Efficiency, as in effect on January 
1, 2009’’ each place it appears and insert-
ing ‘‘the applicable CEE standards’’. 
(ii) APPLICABLE CEE STANDARDS.— 
Section 25C(d) of such Code is amended 
by adding at the end the following new 
paragraph: 
‘‘(7) APPLICABLE CEE STANDARDS.—For pur-
poses of this section, the term ‘applicable CEE 
standards’ means, with respect to any property, the 
standards established by the Consortium for Energy 
Efficiency that are in effect for such property on the 
first day of the taxable year for which the credit is 
allowed.’’. 
(B) OTHER ENERGY EFFICIENT BUILDING 
PROPERTY.—Paragraph (3) of section 25C(d) 
of such Code is amended— 
(i) in subparagraph (A), by inserting 
‘‘and meets Energy Star program certifi-
cation requirements as of the first day of 
the taxable year in which the property 
placed in service’’ after ‘‘procedure’’, 
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171 
(ii) in subparagraph (C), by inserting 
‘‘and meets Energy Star program certifi-
cation requirements as of the first day of 
the taxable year in which the property 
placed in service’’ after ‘‘90 percent’’, and 
(iii) in subparagraph (E)— 
(I) by striking ‘‘and which’’ and 
inserting ‘‘which’’, and 
(II) by inserting ‘‘, and which 
meets Energy Star program certifi-
cation requirements as of the first day 
of the taxable year in which the prop-
erty placed in service’’ after ‘‘75 per-
cent’’. 
(C) FURNACES
AND
HOT
WATER
BOIL-
ERS.—Paragraph (4) of section 25C(d) of such 
Code is amended by inserting ‘‘and meets En-
ergy Star program certification requirements as 
of the first day of the taxable year in which the 
property placed in service’’ after ‘‘95’’. 
(D) ADVANCED
MAIN
AIR
CIRCULATING 
FANS.—Paragraph (5) of section 25C(d) of 
such Code is amended— 
(i) by striking ‘‘and which’’ and in-
serting ‘‘, which’’, and 
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(ii) by inserting ‘‘, and which meets 
Energy Star program certification require-
ments as of the first day of the taxable 
year in which the property placed in serv-
ice’’ after ‘‘test procedures)’’. 
(c) CREDIT MADE REFUNDABLE.— 
(1) CREDIT MOVED TO SUBPART RELATING TO 
REFUNDABLE
CREDITS.—The 
Internal 
Revenue 
Code of 1986 is amended— 
(A) by redesignating section 25C as section 
36C, and 
(B) by moving section 36C (as amended by 
subsections (a) and (b) and as redesignated by 
subparagraph (A)) from subpart A of part IV 
of subchapter A of chapter 1 to the location im-
mediately before section 37 in subpart C of part 
IV of subchapter A of chapter 1. 
(2) CONFORMING AMENDMENTS.— 
(A) Section 1016(a)(33) of such Code is 
amended— 
(i) by striking ‘‘section 25C(f)’’ and 
inserting ‘‘section 36C(f)’’, and 
(ii) by striking ‘‘under section 25C’’ 
and inserting ‘‘under section 36C’’. 
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(B) The table of sections for subpart A of 
part IV of subchapter A of chapter 1 of such 
Code is amended by striking the item relating 
to section 25C. 
(C) Paragraph (2) of section 1324(b) of 
title 31, United States Code, is amended by in-
serting ‘‘36C,’’ after ‘‘36B,’’. 
(D) The table of sections for subpart C of 
part IV of subchapter A of chapter 1 of the In-
ternal Revenue Code of 1986 is amended by in-
serting after the item relating to section 36B 
the following new item: 
‘‘36C. Nonbusiness energy property.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2016. 
SEC. 329. PERMANENT EXTENSION, MODIFICATION, AND 
REFUNDABILITY OF CREDIT FOR RESIDEN-
TIAL ENERGY EFFICIENT PROPERTY. 
(a) PERMANENT EXTENSION.—Section 25D of the 
Internal Revenue Code of 1986 is amended by striking 
subsection (h). 
(b) MAINTENANCE OF PHASEOUT PERCENTAGE FOR 
CERTAIN SOLAR PROPERTY.—Paragraph (3) of section 
25D(g) of the Internal Revenue Code of 1986 is amended 
by striking ‘‘and before January 1, 2022,’’. 
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174 
(c) CREDIT ALLOWED FOR ENERGY STORAGE PROP-
ERTY.— 
(1) IN GENERAL.—Section 25D(a) of the Inter-
nal Revenue Code of 1986 is amended by adding at 
the end the following new paragraph: 
‘‘(6) 30 percent of the qualified energy storage 
property expenditures made by the taxpayer during 
the taxable year.’’. 
(2) QUALIFIED
ENERGY
STORAGE
PROPERTY 
EXPENDITURES.—Section 25D(d) of such Code is 
amended by adding at the end the following new 
paragraph: 
‘‘(6) QUALIFIED ENERGY STORAGE PROPERTY 
EXPENDITURE.—The term ‘qualified energy storage 
property expenditure’ means an expenditure for 
property— 
‘‘(A) which is— 
‘‘(i) located in a dwelling unit located 
in the United States and used by the tax-
payer as a residence, 
‘‘(ii) directly connected to the elec-
trical grid, and 
‘‘(iii) designed to receive electrical en-
ergy, to store such energy, and— 
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‘‘(I) to convert such energy to 
electricity and deliver such electricity 
for sale, or 
‘‘(II) to use such energy to pro-
vide improved reliability or economic 
benefits to the grid, or 
‘‘(B) which is— 
‘‘(i) part of a dwelling unit located in 
the United States which is— 
‘‘(I) connected to the electrical 
grid, and 
‘‘(II) used by the taxpayer as a 
residence, 
‘‘(ii) connected to— 
‘‘(I) qualified solar electric prop-
erty, or 
‘‘(II) qualified small wind energy 
property, and 
‘‘(iii) designed to receive electrical en-
ergy, store such energy, and to convert 
such energy to electricity for use by the 
taxpayer.’’. 
(d) CREDIT MADE REFUNDABLE.— 
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176 
(1) CREDIT MOVED TO SUBPART RELATING TO 
REFUNDABLE
CREDITS.—The 
Internal 
Revenue 
Code of 1986 is amended— 
(A) by redesignating section 25D as sec-
tion 36D, and 
(B) by moving section 36D (as amended 
by subsections (a) and (b) and as redesignated 
by subparagraph (A)) from subpart A of part 
IV of subchapter A of chapter 1 to the location 
immediately before section 37 in subpart C of 
part IV of subchapter A of chapter 1 (as 
amended by section 323). 
(2) CONFORMING AMENDMENTS.— 
(A) Section 36C(e)(1) of the Internal Rev-
enue Code of 1986 (as redesignated by section 
323) is amended by striking ‘‘25D(e)’’ and in-
serting ‘‘36D(e)’’. 
(B) Section 45(d)(1) of such Code is 
amended by striking ‘‘section 25D’’ and insert-
ing ‘‘section 36D’’. 
(C) Section 1016(a)(34) of such Code is 
amended— 
(i) by striking ‘‘section 25D(f)’’ and 
inserting ‘‘section 36D(f)’’, and 
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(ii) by striking ‘‘under section 25D’’ 
and inserting ‘‘under section 36D’’. 
(D) The table of sections for subpart A of 
part IV of subchapter A of chapter 1 of such 
Code is amended by striking the item relating 
to section 25D. 
(E) Paragraph (2) of section 1324(b) of 
title 31, United States Code, as amended by 
this Act, is amended by inserting ‘‘36D,’’ after 
‘‘36C,’’. 
(F) The table of sections for subpart C of 
part IV of subchapter A of chapter 1 of the In-
ternal Revenue Code of 1986, as amended by 
this Act, is amended by inserting after the item 
relating to section 36C the following new item: 
‘‘36D. Residential energy efficient property.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2016. 
TITLE IV—ELECTRIFYING THE 
ENERGY ECONOMY 
Subtitle A—General Provisions 
SEC. 401. NATIONAL ZERO-EMISSION VEHICLE STANDARD. 
(a) NATIONAL ZERO-EMISSION VEHICLE STAND-
ARD.—Part A of title II of the Clean Air Act (42 U.S.C. 
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7521 et seq.) is amended by adding at the end the fol-
lowing: 
‘‘SEC. 220. NATIONAL ZERO-EMISSION VEHICLE STANDARD. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) BASE QUANTITY OF NEW MOTOR VEHICLE 
SALES.—The term ‘base quantity of new motor vehi-
cle sales’ means the total quantity of new motor ve-
hicles sold by a vehicle manufacturer during the 
most recent calendar year. 
‘‘(2) HYBRID ELECTRIC VEHICLE.—The term 
‘hybrid electric vehicle’ means a new qualified hybrid 
motor vehicle (as defined in section 30B(d)(3) of the 
Internal Revenue Code of 1986). 
‘‘(3) RETIRE.—The term ‘retire’, with respect 
to a zero-emission vehicle credit, means to disqualify 
the zero-emission vehicle credit for any subsequent 
use under this section, including sale, transfer, ex-
change, or submission in satisfaction of a compliance 
obligation. 
‘‘(4) VEHICLE MANUFACTURER.— 
‘‘(A) IN
GENERAL.—The term ‘vehicle 
manufacturer’ means an entity that— 
‘‘(i) engaged in the manufacturing of 
new motor vehicles; and 
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‘‘(ii) sold not fewer than 100 new 
motor vehicles to ultimate purchasers, ei-
ther directly or through an affiliate, such 
as a dealer. 
‘‘(B) EXCLUSIONS.—The term ‘vehicle 
manufacturer’ does not include— 
‘‘(i) a motor vehicle parts supplier; or 
‘‘(ii) a dealer. 
‘‘(5) 
ZERO-EMISSION
VEHICLE.—The 
term 
‘zero-emission vehicle’ means a motor vehicle that 
produces zero exhaust emissions of any criteria pol-
lutant, precursor pollutant, or greenhouse gas in any 
mode of operation or condition, as determined by the 
Administrator. 
‘‘(b) COMPLIANCE.—For calendar year 2030 and 
each calendar year thereafter, each vehicle manufacturer 
shall meet the requirements of subsections (c) and (d) by 
submitting to the Administrator, not later than April 1 
of the following calendar year, as applicable— 
‘‘(1) for a vehicle manufacturer that fails to 
meet the minimum required percentage of new zero- 
emission vehicle sales for the applicable calendar 
year, as determined under subsection (c), a quantity 
of zero-emission vehicle credits sufficient to offset 
that excess, as determined by the Administrator; or 
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‘‘(2) for a vehicle manufacturer that meets or 
exceeds the minimum required percentage of new 
zero-emission vehicle sales for the applicable cal-
endar year, as determined under subsection (c), a 
certification of that compliance, as the Adminis-
trator determines to be appropriate. 
‘‘(c) MINIMUM REQUIRED ANNUAL PERCENTAGE OF 
NEW ZERO-EMISSION VEHICLE SALES.—For calendar 
years 2030 through 2040, in annual increments, the min-
imum annual percentage of the base quantity of new 
motor vehicle sales of a vehicle manufacturer that shall 
be zero-emission vehicles, or otherwise credited towards 
the percentage requirement pursuant to subsection (e), 
shall be the applicable percentage specified in the following 
table: 
‘‘Minimum Required Annual Percentage of New Zero-Emission 
Vehicle Sales 
Calendar Year 
Percentage 
2030 ................................................................................................
50.0
2031 ................................................................................................
55.0
2032 ................................................................................................
60.0
2033 ................................................................................................
65.0
2034 ................................................................................................
70.0
2035 ................................................................................................
75.0
2036 ................................................................................................
80.0
2037 ................................................................................................
85.0
2038 ................................................................................................
90.0
2039 ................................................................................................
95.0
2040 ................................................................................................
100.0. 
‘‘(d) REQUIREMENT FOR 2040 AND THEREAFTER.— 
For calendar year 2040 and each calendar year thereafter, 
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a vehicle manufacturer shall sell only zero-emission vehi-
cles. 
‘‘(e) ZERO-EMISSION VEHICLE CREDITS.— 
‘‘(1) IN
GENERAL.—A vehicle manufacturer 
may satisfy the requirements of subsection (b) 
through the submission of zero-emission vehicle 
credits— 
‘‘(A) issued to the vehicle manufacturer 
under subsection (f); or 
‘‘(B) obtained by purchase, transfer, or ex-
change under subsection (g). 
‘‘(2) LIMITATION.—A zero-emission vehicle 
credit may be counted toward compliance with sub-
section (b) only once. 
‘‘(f) ISSUANCE OF ZERO-EMISSION VEHICLE CRED-
ITS.— 
‘‘(1) IN GENERAL.—Not later than 1 year after 
the date of enactment of this section, the Adminis-
trator shall establish by rule a program— 
‘‘(A) to verify and issue zero-emission vehi-
cle credits to vehicle manufacturers; 
‘‘(B) to track the sale, transfer, exchange, 
carry over, and retirement of zero-emission ve-
hicle credits; and 
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‘‘(C) to enforce the requirements of this 
section. 
‘‘(2) APPLICATION.— 
‘‘(A) IN
GENERAL.—A vehicle manufac-
turer that sold, either directly or through an af-
filiate, such as a dealer, a new zero-emission ve-
hicle or a hybrid electric vehicle in the United 
States may apply to the Administrator for the 
issuance of a zero-emission vehicle credit. 
‘‘(B) ELIGIBILITY.—To be eligible for the 
issuance of a zero-emission vehicle credit, a ve-
hicle manufacturer shall demonstrate to the Ad-
ministrator that the vehicle manufacturer sold 1 
or more zero-emission vehicles or hybrid electric 
vehicles in the previous calendar year. 
‘‘(C) CONTENTS.—The application shall 
indicate— 
‘‘(i) the type of zero-emission vehicle 
or hybrid electric vehicle that was sold; 
‘‘(ii) the State in which the zero-emis-
sion vehicle or hybrid electric vehicle was 
sold; and 
‘‘(iii) any other information deter-
mined to be appropriate by the Adminis-
trator. 
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‘‘(D) AGGREGATION.—An application for a 
zero-emission vehicle credit under subparagraph 
(A) may aggregate information on all zero-emis-
sion vehicles and hybrid electric vehicles sold by 
the vehicle manufacturer in the applicable cal-
endar year. 
‘‘(3) QUANTITY
OF
ZERO-EMISSION
VEHICLE 
CREDITS.— 
‘‘(A) ZERO-EMISSION VEHICLES.—The Ad-
ministrator shall issue to a vehicle manufac-
turer the application under paragraph (2) of 
which is approved 1 zero-emission vehicle credit 
for each zero-emission vehicle sold in the United 
States. 
‘‘(B) HYBRID ELECTRIC VEHICLES.—For a 
hybrid electric vehicle sold by a vehicle manu-
facturer the application under paragraph (2) of 
which is approved, the Administrator shall issue 
a partial zero-emission vehicle credit based on 
the estimated proportion of the mileage driven 
on the battery of the hybrid electric vehicle, as 
determined by the Administrator. 
‘‘(C) FUEL-EFFICIENT
VEHICLES.—The 
Administrator may issue a partial zero-emission 
vehicle credit for a motor vehicle that consumes 
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less gasoline, as compared to comparable motor 
vehicles (as identified by the Administrator), 
based on the estimated proportion of fuel sav-
ings, determined by the Administrator. 
‘‘(D) CREDIT BANKING.—A zero-emission 
vehicle credit issued for any calendar year that 
is not submitted to comply with the minimum 
annual percentage of new zero-emission vehicles 
requirement of subsection (c) during that cal-
endar year may be carried forward for use pur-
suant to subsection (b)(1) within the next 5 
years, but not later than 2040. 
‘‘(g) ZERO-EMISSION VEHICLE CREDIT TRADING.— 
‘‘(1) IN
GENERAL.—A zero-emission vehicle 
credit for any calendar year before 2040 that is not 
submitted to the Administrator to comply with the 
minimum annual percentage of new zero-emission 
vehicles requirement of subsection (c) for that cal-
endar year may be sold, transferred, or exchanged 
by the vehicle manufacturer to which the credit is 
issued or by any other entity that acquires the zero- 
emission vehicle credit. 
‘‘(2) DELEGATION.—The Administrator may 
delegate to an appropriate market-making entity the 
administration of a national tradeable zero-emission 
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vehicle credit market for purposes of creating a 
transparent national market for the sale or trade of 
zero-emission vehicle credits. 
‘‘(h) ZERO-EMISSION VEHICLE CREDIT RETIRE-
MENT.— 
‘‘(1) IN
GENERAL.—Any entity that obtains 
legal rights to a zero-emission vehicle credit may re-
tire the zero-emission vehicle credit in any calendar 
year. 
‘‘(2) USE OF RETIRED ZERO-EMISSION VEHICLE 
CREDIT.—A zero-emission vehicle credit retired 
under paragraph (1) may not be used for compliance 
with subsection (b) in— 
‘‘(A) the calendar year in which the zero- 
emission vehicle credit is retired; or 
‘‘(B) any subsequent calendar year. 
‘‘(i) INFORMATION
COLLECTION.—The Adminis-
trator may collect the information necessary to verify and 
audit— 
‘‘(1) the annual sales of motor vehicles of any 
vehicle manufacturer; 
‘‘(2) a zero-emission vehicle credit submitted by 
a vehicle manufacturer pursuant to subsection 
(b)(1); 
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‘‘(3) the validity of a zero-emission vehicle cred-
it submitted for compliance by a vehicle manufac-
turer to the Administrator; and 
‘‘(4) the quantity of motor vehicle sales in the 
United States of all vehicle manufacturers. 
‘‘(j) STATE PROGRAMS.— 
‘‘(1) IN GENERAL.—Nothing in this section di-
minishes any authority of a State or political sub-
division of a State to adopt or enforce any law (in-
cluding regulations) relating to motor vehicles. 
‘‘(2) COMPLIANCE WITH SECTION.—No law or 
regulation of a State or political subdivision of a 
State shall relieve any vehicle manufacturer from 
compliance with any requirement otherwise applica-
ble under this section. 
‘‘(k) REGULATIONS.—Not later than 1 year after the 
date of enactment of this section, the Administrator shall 
promulgate regulations to implement this section. 
‘‘(l) ENFORCEMENT.— 
‘‘(1) CIVIL PENALTY.— 
‘‘(A) IN
GENERAL.—A vehicle manufac-
turer that fails to comply with subsection (b) 
shall be liable for a civil penalty, assessed by 
the Administrator, in an amount that is equal 
to twice the average value of the aggregate 
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(III) to carry out other activities 
considered appropriate by the Sec-
retary. 
(iii) COST SHARING.— 
(I) IN GENERAL.—A grant pro-
vided under this subsection shall be 
subject to a minimum non-Federal 
cost-sharing requirement of 80 per-
cent. 
(II) NON-FEDERAL
SOURCES.— 
The Secretary shall determine the ap-
propriate cost share for each selected 
applicant. 
(III) 
REDUCTION.—The 
Sec-
retary may reduce or eliminate the 
cost-sharing requirement described in 
subclause (I), as the Secretary deter-
mines to be necessary. 
(IV) REPAYMENT
OF
FEDERAL 
SHARE.—The Secretary shall not re-
quire repayment of the Federal share 
of a cost-shared activity under this 
section as a condition of providing a 
grant. 
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(ii) communities that are likely to re-
ceive a high score in the report described 
in subsection (i); 
(B) shall identify localities based on geo-
graphical proximity to climate impacts, socio-
economic, public health, and environmental haz-
ard criteria; and 
(C) may include an area— 
(i) that is disproportionately affected 
by climate impacts or other hazards that 
lead to negative public health effects, expo-
sure, or environmental degradation; 
(ii) with a concentration of individuals 
who have— 
(I) a low income; 
(II) high unemployment; 
(III) a low level of homeowner-
ship; 
(IV) a high rent burden; 
(V) a low level of educational at-
tainment; or 
(VI) a disproportionate health 
burden; or 
(iii) with a climate-sensitive popu-
lation. 
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