Just Transition for Energy Communities Act
Bill: H.R.5193 | Sponsor: Rep. Leger Fernandez, Teresa (D-NM)
Policy area: Energy

Summary:
Just Transition for Energy Communities Act
This bill establishes a program to assist eligible states and tribal governments that are economically reliant on fossil fuel development, production, or electricity generation to diversify their economies.

To provide payments to States and Tribal governments to support energy 
            transition communities, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Just Transition for Energy 
Communities Act''.

SEC. 2. STATE AND TRIBAL GOVERNMENT ENERGY TRANSITION PAYMENTS.

    (a) Establishment of Program.--The Secretary shall establish a 
program under which the Secretary shall, subject to the availability of 
appropriations, annually make payments to eligible States and eligible 
Tribal governments in accordance with subsection (b).
    (b) Payments.--
            (1) Eligible states.--Under the program, the Secretary 
        shall annually pay to each eligible State an amount that is 
        determined by the Secretary, in consultation with other 
        relevant Federal agencies, by taking into account--
                    (A) the past levels of fossil fuel (including such 
                fossil fuels as coal, oil, and natural gas) 
                development, production, and electricity generation 
                within the eligible State during the 10-year period 
                ending on the date of enactment of this Act;
                    (B) the Federal mineral revenue received by the 
                eligible State during the 10-year period ending on the 
                date of enactment of this Act;
                    (C) the economic conditions in the eligible State, 
                using measurements of the poverty rate, household 
                income, land value, the unemployment rate, and other 
                economic indicators during the 10-year period ending on 
                the date of enactment of this Act; and
                    (D) the eligible State's plan submitted under 
                subsection (e).
            (2) Eligible tribal governments.--Under the program, the 
        Secretary shall annually pay to each eligible Tribal government 
        an amount that is determined by the Secretary, in consultation 
        with other relevant Federal agencies, by taking into account--
                    (A) the past levels of fossil fuel (including such 
                fossil fuels as coal, oil, and natural gas) 
                development, production, and electricity generation on 
                the Tribal land of the eligible Tribe during the 10-
                year period ending on the date of enactment of this 
                Act;
                    (B) the Federal mineral revenue received by the 
                eligible Tribe during the 10-year period ending on the 
                date of enactment of this Act;
                    (C) the economic conditions in the eligible Tribe, 
                using measurements of the poverty rate, household 
                income, land value, the unemployment rate, and other 
                economic indicators during the 10-year period ending on 
                the date of enactment of this Act; and
                    (D) the eligible Tribe's plan submitted under 
                subsection (e).
    (c) Use of Payments.--
            (1) In general.--Eligible States and eligible Tribal 
        governments that receive payments under the program shall use 
        such payments to carry out economic development or 
        diversification activities, which includes planning such 
        activities.
            (2) Prohibited use.--Eligible States and eligible Tribal 
        governments that receive payments under the program may not use 
        such payments--
                    (A) with respect to any new or existing 
                development, production, or utilization of fossil fuels 
                (including such fossil fuels as coal, oil, and natural 
                gas) or associated infrastructure (including 
                pipelines); or
                    (B) for any lobbying activity.
    (d) Notification.--The Secretary shall, not later than 30 days 
before the start of each year in which payments are to be made under 
the program, notify each eligible State and eligible Tribal government 
of the amount of the payment they may receive as determined under 
subsection (b).
    (e) Planning Requirement.--
            (1) In general.--Before receiving a payment under the 
        program, an eligible State or eligible Tribal government, or 
        combination thereof, shall submit to the Secretary a plan that 
        describes how the eligible State or eligible Tribal government 
        will use the payment in accordance with subsection (c).
            (2) Approval.--
                    (A) In general.--The Secretary shall approve a plan 
                submitted under paragraph (1), and any updates 
                submitted under paragraph (3), prior to making the 
                relevant payment under this section.
                    (B) Determination.--The Secretary shall not approve 
                a plan under subparagraph (A) unless the Secretary 
                determines that the plan will facilitate carrying out 
                economic development or diversification activities in 
                accordance with subsection (c).
            (3) Updates to plan.--Each year, an eligible State or 
        eligible Tribal government, or combination thereof, shall 
        submit to the Secretary any updates to the plan submitted under 
        paragraph (1).
    (f) Reporting Requirement.--
            (1) In general.--Subject to paragraph (2), each eligible 
        State and eligible Tribal government that receives a payment 
        under this section shall submit to the Secretary periodic 
        reports, which the Secretary shall make available to the 
        public, providing a detailed accounting of the uses of the 
        payments by such eligible State or eligible Tribal government, 
        and such reports shall include such other information as the 
        Secretary may require for the administration of this section.
            (2) Exception.--Any information submitted by an eligible 
        Tribal government under paragraph (1) that is designated by the 
        eligible Tribal government as sensitive or private according to 
        Native American custom, law, culture, or religion--
                    (A) may not be made available to the public; and
                    (B) shall be exempt from disclosure under section 
                552(b)(3)(B) of title 5, United States Code.
    (g) Labor Requirements.--Eligible States and eligible Tribal 
governments that receive payments under this section shall provide to 
the Secretary written assurances that--
            (1) all laborers and mechanics employed by contractors or 
        subcontractors in the performance of construction, alteration 
        or repair work carried out, in whole or in part, with 
        assistance made available under this section shall be paid 
        wages at rates not less than those prevailing on projects of a 
        character similar in the locality as determined by the 
        Secretary of Labor in accordance with subchapter IV of chapter 
        31 of title 40, United States Code, and with respect to the 
        labor standards specified in this paragraph, the Secretary of 
        Labor shall have the authority and functions set forth in 
        Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 
        U.S.C. App.) and section 3145 of title 40, United States Code;
            (2) all service employees employed by contractors or 
        subcontractors to furnish services carried out, in whole or in 
        part, with assistance made available under this section shall 
        be paid not less than the minimum wage and fringe benefits 
        rates described in section 6703 of title 41, United States 
        Code, and with respect to the labor standards specified in this 
        paragraph, the Secretary of Labor shall have the authority and 
        functions set forth in chapter 67 of title 41, United States 
        Code; and
            (3) all contractors and subcontractors performing work on a 
        project assisted in whole or in part by this section, shall 
        have an explicit neutrality policy on any issue involving the 
        organization of employees for purposes of collective 
        bargaining.
    (h) Recoupment.--Any eligible State or eligible Tribal government 
that has failed to submit a report required under subsection (f), or 
failed to comply with subsection (c) or subsection (g)--
            (1) shall be prohibited from receiving payments under this 
        section; and
            (2) shall be required to repay to the Secretary an amount 
        equal to--
                    (A) in the case of a failure to comply with 
                subsection (c), the amount of funds used in violation 
                of such subsection; and
                    (B) in the case of a failure to submit a report 
                required under subsection (f), such amount as the 
                Secretary determines appropriate, but not to exceed 15 
                percent of the total amount paid to the eligible State 
                or eligible Tribal government under this section.
    (i) Definitions.--In this Act:
            (1) Eligible state.--The term ``eligible State'' means any 
        State that received any Federal mineral revenue in any of 
        fiscal years 2016 through 2020.
            (2) Eligible tribe.--The term ``eligible Tribe'' means any 
        Indian or Alaska Native Tribe, band, nation, pueblo, village, 
        community, component band, or component reservation that--
                    (A) is individually identified (including 
                parenthetically) in the list published most recently as 
                of the date of enactment of this section pursuant to 
                section 104 of the Federally Recognized Indian Tribe 
                List Act of 1994 (25 U.S.C. 5131); and
                    (B) received any Federal mineral revenue in any of 
                fiscal years 2016 through 2020.
            (3) Eligible tribal government.--The term ``eligible Tribal 
        government'' means the recognized governing body of an eligible 
        Tribe.
            (4) Federal mineral revenue.--The term ``Federal mineral 
        revenue'' means amounts received by States and Tribes from 
        sales, royalties, rentals, bonus bids, interest, and other sums 
        paid for production or development of oil, gas, coal, or other 
        fossil fuels from leases entered into pursuant to--
                    (A) the Outer Continental Shelf Lands Act (43 
                U.S.C. 1331 et seq.);
                    (B) the Gulf of Mexico Energy Security Act of 2006 
                (43 U.S.C. 1331 note);
                    (C) the Mineral Leasing Act (30 U.S.C. 181 et 
                seq.);
                    (D) the Mineral Leasing Act for Acquired Lands (30 
                U.S.C. 351 et seq.);
                    (E) the Naval Petroleum Reserves Production Act of 
                1976 (42 U.S.C. 6501 et seq.); and
                    (F) the Act entitled ``An Act to regulate the 
                leasing of certain Indian lands for mining purposes'' 
                (Chapter 198; 52 Stat. 347; 25 U.S.C. 396a et seq.).
            (5) Program.--The term ``program'' means the program 
        established under subsection (a).
            (6) Tribal land.--The term ``Tribal land'' means any land 
        or minerals, or interests in land or minerals, owned by any 
        eligible Tribe, the title to which is held in trust by the 
        United States, or is subject to a restriction against 
        alienation under the laws of the United States.
            (7) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury.
    (j) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary for fiscal year 2022--
            (1) to make payments under subsection (b)(1), 
        $4,500,000,000, to remain available until fiscal year 2031; and
            (2) to make payments under subsection (b)(2), $500,000,000, 
        to remain available until fiscal year 2031.
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