Inflation Reduction Act of 2022
Bill: H.R.5376 | Sponsor: Rep. Yarmuth, John A. (D-KY)
Policy area: Economics and Public Finance

Summary:
TITLE I--COMMITTEE ON FINANCE
Subtitle A--Deficit Reduction
Part 1--Corporate Tax Reform
(Sec. 10101) This act imposes an alternative minimum tax of 15% of the average annual adjusted financial statement income of domestic corporations (excluding Subchapter S corporations, regulated investment companies, and real estate investment trusts) that exceeds $1 billion over a specified 3-year period. The tax is effective in taxable years beginning after December 31, 2022.
Part 2--Excise Tax on Repurchase of Corporate Stock
(Sec. 10201) The act imposes a non-deductible 1% excise tax on the fair market value of stock repurchased by a publicly traded domestic corporation after 2022, with certain exceptions, including for repurchases that are part of a reorganization, are less than $1 million, that are contributed to certain tax-exempt retirement plans, or that are treated as a dividend. The tax applies to purchases of corporate stock by certain corporate subsidiaries and foreign corporations.
Part 3--Funding the Internal Revenue Service and Improving Taxpayer Compliance
(Sec. 10301) The act provides additional funding for the Internal Revenue Service for taxpayer services and enforcement, including for operations support, business systems modernization, and the development of a free direct e-file tax return system. It also provides additional funding for the Department of the Treasury Inspector General for Tax Administration, the Office of Tax Policy, the Tax Court, and Treasury departmental offices.
Subtitle B--Prescription Drug Pricing Reform
Part 1--Lowering Prices Through Drug Price Negotiation
(Sec. 11001) The act requires the Centers for Medicare & Medicaid Services (CMS) to negotiate the prices of certain prescription drugs under Medicare beginning in 2026.
Specifically, the CMS must negotiate maximum prices for brand-name drugs that do not have other generic equivalents and that account for the greatest Medicare spending. The CMS must negotiate the prices of 10 drugs that are covered under the Medicare prescription drug benefit in 2026, 15 drugs that are covered under the Medicare prescription drug benefit in 2027, 15 drugs that are covered under the Medicare prescription drug benefit or under Medicare medical services in 2028, and 20 drugs that are covered under the Medicare prescription drug benefit or under Medicare medical services in 2029 and each year thereafter.
The selected drugs must be among the 50 drugs with the highest total spending over the most recent 12-month period under the Medicare prescription drug benefit or Medicare medical services and must have had market approval for at least 7 years (for drug products) or 11 years (for biologics). The act excludes (1) orphan drugs that are approved to treat only one rare disease or condition, (2) plasma-derived products, and (3) drugs that account for less than $200 million in annual Medicare spending (adjusted annually for inflation).
The CMS must enter into agreements with drug manufacturers to negotiate prices; manufacturers must submit information relating to costs and other data as part of the negotiation process. Manufacturers that fail to comply with negotiation requirements are subject to civil penalties.
(Sec. 11002) The CMS may delay negotiations for certain biologics with pending biosimilars for up to two years upon manufacturer request.
(Sec. 11003) Drug manufacturers are subject to excise taxes for failing to comply with negotiation requirements, such as failing to furnish required information during the negotiation process or failing to reach an agreement by the required deadline. The tax does not apply if manufacturers withdraw their drugs from Medicare and Medicaid coverage.
(Sec. 11004) The act provides funds for FY2022 for the CMS to implement this program.
Part 2--Prescription Drug Inflation Rebates
(Sec. 11101) In addition, the act requires drug manufacturers to issue rebates to the CMS for brand-name drugs without generic equivalents under Medicare medical services that cost $100 or more per year per individual and for which prices increase faster than inflation. Manufacturers that fail to comply are subject to civil penalties.
The act provides funds through FY2031 for the CMS to implement this rebate program.
(Sec. 11102) The act similarly requires drug manufacturers to issue rebates to the CMS for brand-name drugs without generic equivalents under the Medicare prescription drug benefit that cost $100 or more per year per individual and for which prices increase faster than inflation. Manufacturers that fail to comply are subject to civil penalties.
The act provides funds through FY2031 for the CMS to implement this rebate program.
Part 3--Part D Improvements and Maximum Out-of-Pocket Cap for Medicare Beneficiaries
(Sec. 11201) The act eliminates beneficiary cost-sharing above the annual out-of-pocket spending threshold under the Medicare prescription drug benefit beginning in 2024 and caps annual out-of-pocket spending at $2,000 in 2025 (with annual adjustments thereafter). It also establishes a program under which drug manufacturers provide discounts to beneficiaries who have incurred costs above the annual deductible beginning in 2025.
The act also limits base premiums under the Medicare prescription drug benefit for 2024 through 2030 to a 6% annual increase or the amount that would otherwise apply under the prior methodology, whichever is less.
The act provides funds through FY2031 for the CMS to implement these changes and requirements.
(Sec. 11202) The act also establishes a process through which beneficiaries, including those eligible for low-income subsidies, may have their monthly out-of-pocket costs capped and paid in monthly installments beginning in 2025; it provides funds for FY2023 for the CMS to implement this process.
Part 4--Continued Delay of Implementation of Prescription Drug Rebate Rule
(Sec. 11301) The act further delays until 2032 implementation of a Department of Health and Human Services rule relating to the treatment of certain Medicare prescription drug benefit rebates from drug manufacturers for purposes of federal anti-kickback laws.
Part 5--Miscellaneous
The act establishes a series of additional programs and requirements relating to coverage under the Medicare prescription drug benefit and other programs.
(Sec. 11401) The act eliminates cost-sharing under the Medicare prescription drug benefit for adult vaccines that are recommended by the Advisory Committee on Immunization Practices.
(Sec. 11402) Beginning July 1, 2024, the act limits payment under Medicare medical services for biosimilars that do not have an initial average sales price to the payment amount for the reference biologic or the amount that would otherwise apply under the prior methodology, whichever is less.
(Sec. 11403) The act also temporarily increases payment for other biosimilars under Medicare medical services.
(Sec. 11404) Beginning in 2024, the act expands eligibility under the low-income subsidy program of the Medicare prescription drug benefit to allow those with income of up to 150% of the federal poverty line to receive full premium subsidies and a $0 deductible.
(Sec. 11405) It also requires coverage, without cost-sharing, of adult vaccines that are recommended by the Advisory Committee on Immunization Practices under Medicaid and the Children's Health Insurance Program (CHIP).
(Sec. 11406) In addition, the act caps cost-sharing under the Medicare prescription drug benefit for a month's supply of covered insulin products at (1) for 2023 through 2025, $35; and (2) beginning in 2026, $35, 25% of the government's negotiated price, or 25% of the plan's negotiated price, whichever is less. The act provides funds for FY2022 for the CMS to implement these provisions.
(Sec. 11407) The act also waives the deductible for insulin furnished through covered durable medical equipment under Medicare medical services and limits coinsurance to $35 for a month's supply of such insulin beginning July 1, 2023.
(Sec. 11408) The act provides that a health insurance plan may still be considered a high deductible health plan even if it does not have a deductible for insulin products.
Subtitle C--Affordable Care Act Subsidies
(Sec. 12001) The act extends through 2025 certain adjustments and expansions of the premium tax credit, including to allow taxpayers with income above 400% of the federal poverty line to qualify for the credit.
Part 1--Clean Electricity and Reducing Carbon Emissions
(Sec. 13101) The act modifies and extends through 2024 the tax credit for producing electricity from renewable resources, specifically wind, biomass, geothermal and solar, landfill gas, trash, qualified hydropower, and marine and hydrokinetic resources. The act allows additional credit amounts for facilities that pay prevailing wages and meet registered apprenticeship requirements. The act also allows a bonus credit amount for facilities that meet domestic content requirements for certain steel, iron, and manufactured projects and for facilities located in an energy community (i.e., a brownfield site or an area with significant employment related to oil, gas, or coal activities).
The act reduces the credit amount for facilities financed with tax-exempt bonds.
(Sec. 13102) The act extends through 2024 the tax credit for investment in certain energy properties (e.g., solar, fuel cells, waste energy recovery, combined heat and power, small wind property, and microturbine property). It extends through 2034 the credit for geothermal heat pumps.
The act extends the credit to include as energy property energy storage technology, qualified biogas property, electrochromic glass, and microgrid controllers.
The act allows an increased credit rate for projects that pay prevailing wages and meet registered apprenticeship requirements. The act also allows a bonus credit amount for facilities that meet domestic content requirements for steel, iron, and manufactured projects and for facilities located in an energy community.
(Sec. 13103) The act modifies the energy tax credit to allocate 1.8 gigawatts for environmental justice solar and wind capacity credits in low-income communities and Indian lands in 2023 and 2024. Facilities receiving allocations must be placed in service within four years after the allocation date.
(Sec. 13104) The act extends until December 31, 2032, the construction deadline date for carbon capture or direct air capture facilities under the tax credit for carbon oxide sequestration. It also modifies the capacity requirements and base credit amounts for the credit.
(Sec. 13105) The act creates a new tax credit for qualifying zero-emission nuclear electrical power produced and sold after December 31, 2023, and before 2033.
Part 2--Clean Fuels
(Sec. 13201) The act extends through 2024 the income tax credit for biodiesel and renewable diesel used as fuel, the biodiesel excise tax credit, the alternative fuels tax credit, and the second generation biofuel producer tax credit.
(Sec. 13203) The act creates a new tax credit through 2024 for the sale or mixture of sustainable aviation fuel. The base amount of the credit is $1.25 per gallon, with additional amounts for greenhouse gas emission reductions. Producers and importers of such fuel must register with the Department of the Treasury.
(Sec. 13204) The act creates a new tax credit for the production of qualified clean hydrogen during a specified 10-year period. The act defines qualified clean hydrogen as hydrogen that is produced through a process that results in a lifecycle greenhouse gas emissions rate of not greater than 4 kilograms of CO2e per kilogram of hydrogen.
(Sec. 13301) The act extends through 2032 the tax credit for nonbusiness (residential) energy property expenditures. It increases the rate of the credit to 30% and allows an annual $1,200 limitation of the credit amount in lieu of a lifetime limitation. The act also allows an annual $2,000 credit for geothermal heat pumps and biomass stoves and increases the credit for windows and doors.
The act also allows a 30% credit, up to $150, for home energy audits. The credit is renamed the energy efficient home improvement credit.
(Sec. 13302) The act extends through 2034 the tax credit for residential clean energy, modifies the phaseout for such credit, and extends the credit to include qualified battery storage technology expenditures.
(Sec. 13303) The act modifies the tax deduction for energy efficient commercial buildings to revise the maximum amount of such deduction and energy efficiency requirements for such buildings.
(Sec. 13304) The act extends the new energy efficient home tax credit through 2032. It increases the credit to allow a $2,500 credit for new homes that meet certain Energy Star efficiency standards and a $5,000 credit for new homes that are certified as zero-energy ready homes, and further allows a credit for energy efficient multifamily dwellings.
(Sec. 13401) The act modifies requirements for the refundable income tax credit for qualifying plug-in electric vehicles. The modified credit is $3,750 for any vehicle meeting certain critical minerals requirements and $3,750 for vehicles meeting certain battery component requirements. The maximum allowable credit remains $7,500 per vehicle. Vehicles eligible for the credit include those made by qualified U.S. manufacturers and excludes those manufactured or assembled by a hostile foreign entity.
The credit is not available to taxpayers whose modified adjusted gross income exceeds $150,000 ($300,000 for married couples filing jointly) The credit is not allowed for vehicles that have a manufacturer's suggested retail price in excess of $80,000 for vans, sport utility vehicles (SUVs), or pickup trucks, and $55,000 for other vehicles.
The credit does not apply to vehicles placed in service after 2032.
(Sec. 13402) The act allows a new tax credit for buyers of previously-owned qualified clean plug-in and fuel cell vehicles. The credit is limited to the lesser of $4,000 or 30% of the vehicle purchase price. The credit is disallowed for taxpayers whose modified adjusted gross income exceeds certain levels and applies only to vehicles with a sales price not exceeding $25,000. It does not apply to vehicles acquired after 2032.
(Sec. 13403) The act creates a new tax credit for qualified commercial clean vehicles. The amount of the credit is the lesser of 15% of the cost of the vehicle (30% for vehicles not powered by a gasoline or diesel internal combustion engine), or (2) the cost of the vehicle in relation to a comparable vehicle. The credit amount may not exceed $7,500 for vehicles weighing less than 14,000 pounds ($40,000 for other vehicles). Eligible vehicles must have a battery capacity of not less than 15 kilowatt hours and be capable of being recharged from an external source of electricity.
The credit does not apply to vehicles acquired after 2032.
(Sec. 13404) The act modifies and extends through 2032 the tax credit for alternative fuel refueling property. Beginning in 2023, charging or refueling property is eligible for the credit only if it is placed in service within a low-income or rural area.
(Sec. 13501) The act provides addition allocations of the 30% qualifying advanced energy project tax credit for investments in projects that reequip, expand, or establish certain energy manufacturing facilities for the production or recycling of renewable energy property, energy storage systems and components, or other energy property.
(Sec. 13502) The act creates a new tax credit for the production and sale of solar and wind components, with a phaseout through 2032.
(Sec. 13601) The act permanently reinstates the Hazardous Substance Superfund financing rate on domestic crude oil and imported petroleum products at 16.4 cents per barrel in 2023, adjusted annually thereafter for inflation.
(Sec. 13701) The act creates a new tax credit for the production of clean electricity. The credit is for the sale of domestically produced electricity with a greenhouse gas emission rate not greater than zero. To qualify for the credit, electricity must be produced at a qualifying facility placed in service after 2024.
(Sec. 13702) The act creates a new clean electricity investment tax credit for investment in qualifying zero-emissions electricity generation facilities or energy storage technology.
(Sec. 13703) The act allows a five-year recovery period for the depreciation of clean electricity facilities placed in service after 2024.
(Sec. 13704) The act establishes a new tax credit for domestic clean fuel production beginning in 2025.
(Sec. 13801) The act allows certain tax-exempt entities, including state and local governments and Indian tribal governments, to treat certain energy-related tax credit amounts as direct payments of tax.
(Sec. 13901) The act makes permanent the increased coal excise tax rate for funding the Black Lung Disability Trust Fund.
(Sec. 13902) The act allows an increased offset of research tax credit amounts against the Social Security payroll taxes of small businesses that are less than 5 years old with less than $5 million in gross receipts.
(Sec. 13903) The act reinstates the current-law suspension of the tax deduction for state and local taxes (i.e., 2018 through 2025). It also extends the limitation on the excess business losses of noncorporate taxpayers.
TITLE II--COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY
Subtitle A--General Provisions
The act provides funding to the Department of Agriculture (USDA) for a variety of programs related to conservation and renewable energy. The funds under this title shall remain available through FY2031.
Subtitle B--Conservation
(Sec. 21001) Specifically, the act provides funding, subject to conditions, to USDA for the following voluntary conservation programs: the environmental quality incentives program, the conservation stewardship program, the agricultural conservation easement program, and the regional conservation partnership program.
(Sec. 21002) It also provides funding to USDA's Natural Resources Conservation Service for (1) conservation technical assistance; and (2) a program to quantify carbon sequestration and carbon dioxide, methane, and nitrous oxide emissions.
Subtitle C--Rural Development and Agricultural Credit
In addition, the act provides funding to USDA for several programs that support the generation, storage, and use of renewable energy in rural communities.
(Sec. 22001) Specifically, the act provides funding for the cost of loans under the Rural Electrification Act of 1936 to generate electricity from renewable sources for resale to rural and nonrural residents, including projects that store electricity.
(Sec. 22002) The act also provides funding for the Rural Energy for America Program, under which USDA must provide financial assistance to agricultural producers and rural small businesses for renewable energy systems and energy efficiency projects, including grants and loans guaranteed by USDA for underutilized, renewable-energy technologies.
(Sec. 22003) The act revises the Farm Security and Rural Investment Act of 2002 to provide funding for grants to increase the sale and use of agricultural commodity-based fuels through infrastructure improvements for blending, storing, supplying, or distributing biofuels.
(Sec. 22004) It also provides funding to USDA for assisting the long-term resiliency, reliability, and affordability of rural electric systems. For example, USDA may provide financial assistance to electric cooperatives and other eligible entities for purchasing or deploying (1) renewable energy systems, (2) zero-emission systems, or (3) carbon capture and storage systems. Further, it provides financial assistance to such entities for making energy efficiency improvements to electric generation and transmission systems.
(Sec. 22005) Additionally, the act provides funding to USDA for rural development administrative costs.
(Sec. 22006) The act appropriates funding to USDA for assisting borrowers of certain direct or guaranteed loans administered by the Farm Service Agency whose agricultural operations are at financial risk.
(Sec. 22007) The act revises the American Rescue Plan Act of 2021 to provide additional support for underserved farmers, ranchers, or forest landowners.
Subtitle D--Forestry
The act also provides funding to USDA for public and private forests.
(Sec. 23001) Specifically, the act provides funding for the National Forest System, including funding for forest restoration, wildfire prevention, environmental reviews, and related activities.
(Sec. 23002) Further, the act provides funding to USDA for grant programs under the Cooperative Forestry Assistance Act of 1978 to
The act also provides funding to USDA to support the wood innovation grant program under the Agriculture Improvement Act of 2018.
(Sec. 23003) It also provides funding to USDA for grants to states through the Forest Legacy Program for the acquisition of land and interests in land, such as conservation easements. It also provides grants to states, local governments, Indian tribes, and other eligible entities for tree planting and related activities.
(Sec. 23004) The act prohibits USDA from using any other available funds to satisfy obligations made under this subtitle.
(Sec. 23005) Finally, the act provides funding to USDA for administrative costs.
TITLE III--COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS
(Sec. 30001) The act provides additional funding for the President to carry out activities under the Defense Production Act of 1950. That act confers on the President a broad set of authorities to influence domestic industry in order to provide essential materials and goods for the national defense. The funds shall remain available through FY2024.
(Sec. 30002) In addition, the act provides funding to the Department of Housing and Urban Development for loans and grants. The loans and grants must fund projects that address affordable housing and climate change issues. For example, it provides funding, which shall remain available through FY2028, for projects that improve energy or water efficiency, projects that enhance indoor air quality or sustainability, projects that implement the use of zero-emission electricity generation, low-emission building materials or processes, energy storage, or building electrification strategies, or projects that address climate resilience. It also provides funding, which shall remain available through FY2028, for energy and water benchmarking of eligible property along with associated data analysis and evaluation at the property. Eligible property includes low-income housing or housing for the elderly or disabled.
TITLE IV--COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
The act provides funding for coastal communities, coastal and marine habitats, weather forecasting, and aviation technology. The funding shall remain available through FY2026.
(Sec. 40001) Specifically, the act provides funding to the National Oceanic and Atmospheric Administration (NOAA) to provide financial or technical assistance to coastal states and other eligible entities for the conservation, restoration, and protection of coastal habitat, marine habitats, and marine fisheries in order to enable coastal communities prepare for extreme storms and other changing climate conditions.
(Sec. 40002) It also provides funding for NOAA facilities (e.g., piers, fisheries laboratories, and national marine sanctuaries facilities).
(Sec. 40003) Additionally, it provides funding to enable NOAA to conduct efficient, accurate, and timely reviews for planning, permitting, and approval processes as specified by the act.
(Sec. 40004) The act also provides funding to NOAA for weather research and forecasting innovations. Specifically, it provides funding to accelerate advances and improvements in research, observation systems, modeling, forecasting, assessments, and dissemination of information to the public as it pertains to ocean and atmospheric processes related to weather, coasts, oceans, and climate. It also provides funding to carry out weather research and forecasting program under the Weather Research and Forecasting Innovation Act of 2017. Further, it provides funding for grants that support climate research relating to weather, ocean, coastal, and atmospheric processes and conditions as well as impacts to marine species and coastal habitats.
(Sec. 40005) It also provides funding to NOAA for the procurement of additional high-performance computing, data processing capacity, data management, and storage assets. In addition, the act provides funding for certain projects under the High-Performance Computing Act of 1991, transaction agreements authorized under the Weather Research and Forecasting Innovation Act of 2017, and related administrative expenses.
(Sec. 40006) Further, it provides funding for NOAA to acquire a hurricane hunter aircraft as backup for the capabilities of other hurricane aircraft.
(Sec. 40007) In addition, the act provides funding to the Department of Transportation for a program that awards grants for projects that (1) produce, transport, blend, or store sustainable aviation fuel as defined by the act; or (2) develop, demonstrate, or apply low-emission aviation technologies.
TITLE V--COMMITTEE ON ENERGY AND NATURAL RESOURCES  Subtitle A--Energy
Part 1--General Provisions
The act provides funding to the Department of Energy (DOE) for a variety of programs concerning energy rebates, energy efficiency in buildings, electric transmissions, advanced industrial facilities, and other energy matters.
Part 2--Residential Efficiency and Electrification Rebates
(Sec. 50121) For example, the act provides funding to DOE for a HOMES rebate program that awards grants to state energy offices. Under the program, states must provide rebates to homeowners and aggregators for certain whole-house energy saving retrofits made for low- and moderate-income households. A rebate provided under the program may not be combined with any other federal grant or rebate for the same single upgrade.
(Sec. 50122) In addition, funding is provided to DOE for a high-efficiency electric home rebate program that awards grants to state energy offices and Indian tribes. Under the program, rebates must be given for qualified electrification projects in low- or moderate-income households. Qualified electrification projects includes the purchase and installation of certain heat pumps, electric stoves, electric ovens, electric load service centers, insulation, materials to improve ventilation, or electric wiring.
(Sec. 50123) The act provides funds for a program to train and educate contractors involved in the installation of home energy efficiency and electrification improvements.
Funding for this part shall remain available through FY2031.
Part 3--Building Efficiency and Resilience
(Sec. 50131) The act also provides funding to DOE for grants to states and local governments. Under the program, grants must be used to (1) adopt residential building codes for buildings that meet or exceed the 2021 International Energy Conservation Code, (2) adopt commercial building codes that meet or exceed the ANSI/ASHRAE/IES Standard 90.1--2019, or (3) implement plans for the jurisdiction to achieve full compliance with the codes. Funding shall remain available through FY2029.
Part 4--DOE Loan and Grant Programs
The act provides funding for specified DOE loan programs, including certain loans issued under the Energy Policy Act of 2005. The act also provides funding to support financing of energy infrastructure projects, including projects to replace energy infrastructure that is no longer operational or reduce the emissions of energy infrastructure.
(Sec. 50141) For example, it provides funding for DOE's Energy Loan Program Office to guarantee loans for projects that (1) avoid, reduce, utilize, or sequester air pollutants or greenhouse gases; and (2) employ new or significantly improved technologies as compared to commercial technologies in service in the United States at the time the guarantee is issued. Funding for the program shall remain available through FY2026.
(Sec. 50142) In addition, it appropriates funding, which shall remain available through FY2028, for DOE's program that provides loans to facilities that manufacture advanced vehicles that emit either a low amount of or no amount of greenhouse gas emissions. The act revises the program to eliminate the cap on the total amount of loans that may be provided under the program.
(Sec. 50143) It also appropriates funding to provide grants for the domestic production of efficient hybrid, plug-in electric hybrid, plug-in electric drive, and hydrogen fuel cell electric vehicles. Funding for the grants shall remain available through FY2031.
(Sec. 50144) The act also provides funding to support financing of energy infrastructure projects, including projects to replace energy infrastructure that is no longer in operation or reduce the emissions of energy infrastructure. The funding shall remain available through FY2026.
(Sec. 50145) Finally, it provides funding for a DOE program that provides loans to Indian tribes for energy resource development. Funding for the program shall remain available through FY2028.
Part 5--Electric Transmission
(Sec. 50151) The act provides funding to DOE for a program that provides loans for the construction or modification of electric transmission facilities that are located within a national interest electric transmission corridor. Funding for the program shall remain available through FY2031.
(Sec. 50152) Further, DOE is authorized to make grants to facilitate the siting of interstate electricity transmission lines. Funding for the grants shall remain available through FY2029.
(Sec. 50153) In addition, the act provides funding to DOE to convene stakeholders and conduct analysis related to interregional electricity transmission and transmission of electricity that is generated by offshore wind. The funding shall remain available through FY2031.
Part 6--Industrial
(Sec. 50161) The act also provides funding for DOE's Office of Clean Energy Demonstrations to carry out the advanced industrial facilities deployment program. Under the program, the office must deploy advanced industrial technology to accelerate the reduction and elimination of greenhouse gas emissions at industrial facilities. Funding for the program shall remain available through FY2026.
Part 7--Other Energy Matters
In addition, the act provides funding for other energy matters.
(Sec. 50171) Specifically, the act provides funding for the DOE Office of Inspector General to oversight of DOE activities funding by this act. Funding shall remain available through FY2031.
(Sec. 50172) It also provides funding to DOE's Office of Science to implement activities related to science laboratory infrastructure projects, high energy physics construction, fusion energy science construction, nuclear physics construction, advanced scientific computing research facilities, basic energy sciences projects, and isotope research and development facilities. It also provide funding to the following offices for infrastructure and general projects: Office of Fossil Energy and Carbon Management, the Office of Nuclear Energy, and the Office of Energy Efficiency and Renewable Energy. The funding shall remain available through FY2027.
(Sec. 50173) In addition, the act provides funding for a DOE program that supports the availability of high-assay low-enriched uranium, a fuel used in advanced nuclear reactors. The funding for the program shall remain available through FY2026.
Subtitle B--Natural Resources
Part 1--General Provisions
The act provides funding for natural resources, water supplies, the Office of Insular Affairs, leases to develop energy on federal land, and other related issues.
Part 2--Public Lands
(Sec. 50221) The act provides funding, which shall remain available through FY2031, to the Department of the Interior to carry out projects for the conservation, protection, and resiliency of lands and resources administered by the National Park Service (NPS) and the Bureau of Land Management (BLM).
(Sec. 50222) It also provides funding, which shall remain available through FY2031, for the conservation and ecosystem and habitat restoration projects on lands administered by the NPS and the BLM.
(Sec. 50223) In addition, it provides funding to the NPS, which shall remain available through FY2030, to hire more employees.
(Sec. 50224) Finally, it provides funding to the NPS for priority deferred maintenance projects. Funding shall remain available through FY2026.
Part 3--Drought Response and Preparedness
The act provides funding to the Bureau of Reclamation to address water supplies during drought.
(Sec. 50231) The act provides funding, which shall remain available through FY2031, to Reclamation for water supply projects. Specifically, it provides funding for grants, contracts, or financial assistance agreements for disadvantaged communities to pay for the cost of the planning, design, or construction of water projects in communities or households that do not have reliable access to domestic water supplies.
(Sec. 50232) It also provides funding for projects to cover water conveyance facilities with solar panels. Funding for the projects shall remain available through FY2031.
(Sec. 50233) Finally, it provides funding for drought mitigation in western states, with priority given to the Colorado River Basin and other basins experiencing comparable levels of long-term drought. Funding shall remain available through FY2026.
Part 4--Insular Affairs
(Sec. 50241) The act provides funding to Interior's Office of Insular Affairs, which shall remain available through FY2026. The office must use the funding to provide technical assistance for climate change planning, mitigation, adaptation, and resilience to United States Insular Areas (i.e., American Samoa, Northern Mariana Islands, Guam, Puerto Rico, and the U.S. Virgin Islands).
Part 5--Offshore Wind
(Sec. 50251) The act allows the Department of the Interior to grant leases to develop energy on federal offshore land in the Outer Continental Shelf (OSC) in areas that were withdrawn from leasing in 2020. Thus, the act nullifies the presidential memorandum titled Memorandum on the Withdrawal of Certain Areas of the United States Outer Continental Shelf from Leasing Disposition published on September 8, 2020, as well as the Presidential Determination on the Withdrawal of Certain Areas of the United States Outer Continental Shelf from Leasing Disposition published on September 25, 2020.
Further, it expands the definition of the OCS under the Outer Continental Shelf Lands Act to include land that is within the U.S. exclusive economic zone and adjacent to any territory of the United States, thus the act expands the submerged lands that are available for energy leases. Interior may also conduct wind lease sales that are in such areas if the leases meet specified criteria.
Part 6--Fossil Fuel Resources
In addition, the act modifies several provisions related to energy leases on public lands, including offshore land in the OSC.
(Sec. 50261) For example, it increases the minimum royalty rates for bidding on offshore oil and gas leases.
(Sec. 50262) The act revises the Mineral Leasing Act to revise requirements governing the lease of federal land for energy development. For example, it increases rental rates and minimum bidding standards for onshore oil and gas leases and establishes a new fee that must be paid by any person who nominates public lands for such leasing.
(Sec. 50263) Further, it requires royalties to be paid for methane gas extracted from federal lands, including offshore lands as specified by the act.
(Sec. 50264) Interior must accept the highest bid for oil and gas leases under the Gulf of Mexico Outer Continental Shelf Oil and Gas Lease Sale 257 within 30 days of the act's enactment. It must also conduct (1) Lease Sale 258 by the end of 2022, (2) Lease Sale 259 by March 31, 2023, and (3) Lease Sale 261 no later than the end of the FY2023.
(Sec. 50265) The act limits Interior's authority to issue leases and rights-of-way to develop wind or solar energy on onshore or offshore land for 10 years. Interior may grant such rights-of-way and leases if it offers a certain amount of land for oil and gas leases and holds oil and gas lease sales.
Part 7--United States Geological Survey
(Sec. 50271) The act provides funding for the United States Geological Survey to produce, collect, disseminate, and use 3D elevation data. Funding for this part shall remain available through FY2031.
Part 8--Other Natural Resources Matters
(Sec. 50281) It also provides funding to Interior's Office of Inspector General for oversight of activities funded by this subtitle. Funding for this part shall remain available through FY2031.
Subtitle C--Environmental Reviews
(Sec. 50301) The act provides funding for DOE, the Federal Energy Regulatory Commission (FERC), and Interior to hire personnel, train personnel, develop programmatic environmental documents, procure technical or scientific services for environmental reviews, develop environmental data or information systems, engage stakeholders, and purchase new equipment for environmental analysis. Funding for DOE and FERC shall remain available through FY2031 while funding for Interior shall remain available through FY2026.
TITLE VI--COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS
Subtitle A--Air Pollution
The act provides funding to the Environmental Protection Agency (EPA) to establish a greenhouse gas reduction fund and to support several programs that provide financial incentives to reduce greenhouse gas emissions and other air pollution emissions.
(Sec. 60101) Specifically, the act provides incentives to replace eligible medium-duty vehicles (e.g., school buses) and heavy-duty vehicles (e.g., garbage trucks) with zero-emission vehicles. For example, the act provides funding to the Environmental Protection Agency (EPA) so that it may make awards to replace such vehicles in communities located in areas designated as nonattainment areas under the Clean Air Act (e.g., areas that do not meet national air quality standards). It also provides funding for a program within EPA to award grants and rebates for replacing such vehicles with zero-emission vehicles. Funding shall remain available through FY2031.
(Sec. 60102) Additionally, it provides incentives to reduce air pollution at ports, including by awarding rebates and grants to port authorities and other eligible entities to (1) purchase or install equipment and technology to reduce pollution at ports, (2) conduct any relevant planning or permitting in connection with those purchases, and (3) develop climate action plans. It also provides additional funding for rebates and grants for carrying out such activities in ports located in areas designed as nonattainment areas under the Clean Air Act. Funding shall remain available through FY2027.
(Sec. 60103) Next, it establishes a greenhouse gas reduction fund for the deployment and use of zero-emission technologies, including financial and technical assistance to enable low-income and disadvantaged communities to deploy or benefit from zero-emission technologies. Funding for such assistance shall remain available through FY2024. Funding will remain available to the EPA through FY2031 for administrative costs.
(Sec. 60104) The act appropriates funding for an EPA program that gives grants, rebates, and loans under the Energy Policy Act of 2005 to identify and reduce diesel emissions resulting from goods movement (e.g., distribution of raw materials and consumer products) facilities as well as vehicles servicing those facilities in low-income and disadvantaged communities. Funding for the program shall remain available through FY2031.
(Sec. 60105) Additionally, it provides funding for a variety of programs that provide incentives to monitor and reduce air pollution and greenhouse gases, including funding for grants and other activities to
Funding under this section shall remain available through FY2031.
(Sec. 60106) The act also appropriates funding for grants and other activities to monitor and reduce greenhouse gas emissions and other air pollutants at schools in low-income and disadvantaged communities. Further, it provides funding for technical assistance to schools in low-income and disadvantaged communities to (1) address environmental issues; (2) develop school environmental quality plans that include standards for school building, design, construction, and renovation; and (3) identify and mitigate ongoing air pollution hazards. Funding for the grants and activities shall remain available through FY2031.
(Sec. 60107) It revises the Clean Air Act to provide funding for a low emissions electricity program that will provide education, technical assistance, and outreach to reduce greenhouse gas emissions that result from domestic electricity generation and use. The funding shall remain available through FY2031.
(Sec. 60108) The act provides funding for the EPA to carry out the renewable fuel program. Specifically it provides funding for (1) the development and establishment of tests and protocols regarding the environmental and public health effects of a fuel or fuel additive; (2) the collection and analysis of data to update applicable regulations, guidance, and procedures for determining the amount of greenhouse gas emissions from a fuel over the fuel's life cycle (e.g., production, processing, transport); (3) the review, analysis, and evaluation of the impacts of all transportation fuels on the public as well as on low-income and disadvantaged communities; and (4) supporting investments in advanced biofuels. Funding for the program shall remain available through FY2031.
(Sec. 60109) Additionally, it provides funding to implement the American Innovation and Manufacturing Act of 2020, which directs the EPA to address hydrofluorocarbons (HFC). Further, it provides funding for the EPA to deploy new implementation and compliance tools when carrying out the act. Finally, it provides funding to the EPA for grants under the act for certain innovative technologies that reclaim or destroy HFC. Funding for this section shall remain available through FY2026.
(Sec. 60110) The act also provides funding for updating the EPA's Integrated Compliance Information System and any associated systems, necessary information technology infrastructure, or public access software tools to ensure access to compliance data and related information. Further, it provides funding for grants to states, Indian tribes, and air pollution control agencies to update their systems to ensure communication with the Integrated Compliance Information System. Finally, the act provides funding to the EPA to acquire or update inspection software or to acquire devices on which to run such software. The funding shall remain available through FY2031.
(Sec. 60111) Additionally, it provides funding for the EPA to support (1) enhanced standardization and transparency of corporate climate action commitments and plans to reduce greenhouse gas emissions; (2) enhanced transparency regarding progress toward meeting such commitments and implementing such plans; and (3) progress toward meeting such commitments and implementing such plans. The funding shall remain available through FY2031.
(Sec. 60112) The act provides funding, which shall remain available through FY2031, to develop and carry out a program that supports the development, enhanced standardization and transparency, and reporting criteria for environmental product declarations for construction materials and products. The declarations must include measurements of the greenhouse gases associated with all the relevant stages of production, use, and disposal of the construction materials and products.
(Sec. 60113) The act revises the Clean Air Act to create and provide funding for a methane emissions reduction program and a methane emissions waste reduction program. Funding shall remain available through FY2028.
Under the methane emissions reduction program, the EPA must provide financial incentives to encourage the reporting of greenhouse gases, the monitoring of methane, and the reduction of methane emissions from petroleum and natural gas systems. Further, the act provides funding to assist communities in increasing their resiliency to climate changes.
The act also provides incentives to mitigate methane emissions from marginal conventional wells.
Under the methane emissions waste reduction program, the EPA must impose and collect a charge on methane emissions from an owner or operator of a facility that emitted more than 25,000 metric tons of carbon dioxide equivalent of greenhouse gases per year. The act outlines how the fees are calculated as well as exemptions from charges. The program applies to facilities within the following industry segments:
(Sec. 60114) The act establishes and provides funding for a program that awards grants to states, air pollution control agencies, municipalities, and Indian tribes for developing and implementing plans to reduce greenhouse gas air pollution. Funding for planning grants shall remain available through FY2031 and implementation grants shall remain available through FY2026.
(Sec. 60115) Additionally, it appropriates funding, which shall remain available through FY2026, for the EPA to provide for
(Sec. 60116) Finally, the act provides funding to the EPA to develop and carry out a program to identify and label construction materials and products that have substantially lower levels of greenhouse gas emissions associated with all the relevant stages of production, use, and disposal of the materials and products. Funding for the program shall remain available through FY2026.
Subtitle B--Hazardous Materials
(Sec. 60201) In addition, the act provides funding to the EPA for environmental and climate justice block grants that benefit disadvantaged communities. Funding for the grants shall remain available through FY2026.
Subtitle C--United States Fish and Wildlife Service
(Sec. 60301) The act provides funding, which shall remain available through FY2026, to the United States Fish and Wildlife Service (USFWS) to develop and implement recovery plans for the conservation and survival of endangered species and threatened species.
(Sec. 60302) It also provides funding to USFWS to rebuild and restore units of the National Wildlife Refuge System and state wildlife management areas by (1) addressing the threat of invasive species, (2) increasing the resiliency and capacity of habitats and infrastructure to withstand weather events, and (3) reducing the amount of damage caused by weather events.
Subtitle D--Council on Environmental Quality
(Sec. 60401) The act provides funding to the Council on Environmental Quality (CEQ), including funding for (1) collecting data related to environmental and climate issues, (2) tracking disproportionate burdens and cumulative impacts, and (3) supporting efforts to ensure that any mapping or screening tool is accessible to community-based organizations and community members. Funding to CEQ shall remain available through FY2026.
(Sec. 60402) Additionally, it provides funding for CEQ to carry out its functions. It also provides funding for CEQ to (1) train personnel; (2) develop programmatic environmental documents; and (3) develop tools, guidance, and techniques to improve stakeholder and community engagement.
Subtitle E--Transportation and Infrastructure
This act provides funding to the Federal Highway Administration (FHWA) and to the General Services Administration (GSA).
(Sec. 60501) Specifically, it provides funding to the FHWA for the neighborhood access and equity grant program. Funding shall remain available through FY2026.
(Sec. 60502) In addition, it provides funding, which shall remain available through FY2031, to the Federal Building Fund for converting and constructing federal facilities into high-performance green buildings.
(Sec. 60503) It also appropriates funding to the Federal Building Fund for acquiring and installing low-carbon materials and products in the construction of federal buildings. Funding shall remain available through FY2026.
(Sec. 60504) Further, it provides funding to the Federal Building Fund for emerging and sustainable technologies as well as related sustainability and environmental programs. The funding shall remain available through FY2026.
(Sec. 60505) The act provides funding to the FHWA to facilitate the development and review of documents related to the environmental review of proposed projects. It also limits the federal share of the costs of the environmental review process. The funding shall remain available through FY2026.
(Sec. 60506) The act also provides funding to the FHWA for grants to support the use of low-carbon construction materials and products on federally funded transportation projects. The funding shall remain available through FY2026.
TITLE VII--COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS
This act provides funding to the Department of Homeland Security (DHS), the U.S. Postal Service (USPS), the Federal Emergency Management Agency (FEMA), the Government Accountability Office (GAO), and the Office of Management and Budget (OMB) for the oversight of this act as well as a variety of environmental programs.
(Sec. 70001) Specifically, the act provides funding to DHS for implementing stainability and environmental programs. Funding shall remain available through FY2028.
(Sec. 70002) It also provides funding, which shall remain available through FY2031, to the USPS for purchasing zero-emission delivery vehicles and installing related infrastructure.
(Sec. 70003) Further, it provides funding to Office of Inspector General of the USPS for the oversight of such purchases and installation activities.
(Sec. 70004) Additionally, the act provides funding to the GAO to support the oversight of the distribution and use of funds appropriated under this act as well as the economic, social, and environmental impacts of the funds. Funding shall remain available through FY2031.
(Sec. 70005) It also provides funding to the OMB, which shall remain available through FY2026, for (1) overseeing the implementation of this act; and (2) tracking labor, equity, and environmental standards and performance.
(Sec. 70006) The act provides funding to the Federal Emergency Management Agency so it may provide assistance under the Robert T. Stafford Disaster Relief and Emergency Assistance Act for costs associated with low-carbon building materials as well as incentives that encourage low-carbon and net-zero energy projects. Funding for the program shall remain through FY2026.
(Sec. 70007) Finally, the act provides appropriations to the Federal Permitting Improvement Steering Council Environmental Review Improvement Fund, which shall remain available through FY2031.
TITLE VIII--COMMITTEE ON INDIAN AFFAIRS
This act provides funding to assist Indian tribes address climate change.
(Sec. 80001) For example, the act provides funding to the Bureau of Indian Affairs (BIA) for (1) climate resilience and adaptation programs, and (2) fish hatchery operations and BIA maintenance programs. Funding shall remain available through FY2031.
(Sec. 80002). It also provides funding, which shall remain available through FY2031, to the Office of Native Hawaiian Relations. The office must use the funding to carry out climate resilience and adaptation activities that serve the Native Hawaiian community.
(Sec. 80003) In addition, the act provides funding to the BIA for a tribal electrification program that (1) provides electricity to unelectrified tribal homes through zero-emissions energy systems, (2) transitions electrified tribal homes to zero-emissions energy systems, and (3) provides home repairs necessary to install those systems. Funding for the program shall remain available through FY2031.
(Sec. 80004) Finally, the act provides funding to the Bureau of Reclamation for near-term drought relief actions that mitigate drought impacts for Indian tribes that are impacted by the operation of a Reclamation water project, including through direct financial assistance to address drinking water shortages and mitigate the loss of tribal trust resources. Funding for the program shall remain available through FY2026.

[117th Congress Public Law 169]
[From the U.S. Government Publishing Office]



[[Page 1817]]

                                     

[[Page 136 STAT. 1818]]

Public Law 117-169
117th Congress

                                 An Act


 
   To provide for reconciliation pursuant to title II of S. Con. Res. 
               14. <<NOTE: Aug. 16, 2022 -  [H.R. 5376]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Appropriations 
authorizations.>> 

                      TITLE I--COMMITTEE ON FINANCE

                      Subtitle A--Deficit Reduction

SECTION 10001. AMENDMENT OF 1986 CODE.

    Except as otherwise expressly provided, whenever in this subtitle an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be considered to 
be made to a section or other provision of the Internal Revenue Code of 
1986.

                      PART 1--CORPORATE TAX REFORM

SEC. 10101. CORPORATE ALTERNATIVE MINIMUM TAX.

    (a) Imposition of Tax.--
            (1) In general.--Paragraph (2) of section 55(b) <<NOTE: 26 
        USC 55.>>  is amended to read as follows:
            ``(2) Corporations.--
                    ``(A) Applicable corporations.--In the case of an 
                applicable corporation, the tentative minimum tax for 
                the taxable year shall be the excess of--
                          ``(i) 15 percent of the adjusted financial 
                      statement income for the taxable year (as 
                      determined under section 56A), over
                          ``(ii) the corporate AMT foreign tax credit 
                      for the taxable year.
                    ``(B) Other corporations.--In the case of any 
                corporation which is not an applicable corporation, the 
                tentative minimum tax for the taxable year shall be 
                zero.''.
            (2) Applicable corporation.--Section 59 is amended by adding 
        at the end the following new subsection:

    ``(k) <<NOTE: Determinations.>>  Applicable Corporation.--For 
purposes of this part--
            ``(1) Applicable corporation defined.--
                    ``(A) In general.--The term `applicable corporation' 
                means, with respect to any taxable year, any corporation 
                (other than an S corporation, a regulated investment 
                company, or a real estate investment trust) which meets 
                the

[[Page 136 STAT. 1819]]

                average annual adjusted financial statement income test 
                of subparagraph (B) for one or more taxable years 
                which--
                          ``(i) are prior to such taxable year, and
                          ``(ii) <<NOTE: Effective date.>>  end after 
                      December 31, 2021.
                    ``(B) <<NOTE: Time period.>>  Average annual 
                adjusted financial statement income test.--For purposes 
                of this subsection--
                          ``(i) a corporation meets the average annual 
                      adjusted financial statement income test for a 
                      taxable year if the average annual adjusted 
                      financial statement income of such corporation 
                      (determined without regard to section 56A(d)) for 
                      the 3-taxable-year period ending with such taxable 
                      year exceeds $1,000,000,000, and
                          ``(ii) in the case of a corporation described 
                      in paragraph (2), such corporation meets the 
                      average annual adjusted financial statement income 
                      test for a taxable year if--
                                    ``(I) the corporation meets the 
                                requirements of clause (i) for such 
                                taxable year (determined after the 
                                application of paragraph (2)), and
                                    ``(II) the average annual adjusted 
                                financial statement income of such 
                                corporation (determined without regard 
                                to the application of paragraph (2) and 
                                without regard to section 56A(d)) for 
                                the 3-taxable-year-period ending with 
                                such taxable year is $100,000,000 or 
                                more.
                    ``(C) Exception.--Notwithstanding subparagraph (A), 
                the term `applicable corporation' shall not include any 
                corporation which otherwise meets the requirements of 
                subparagraph (A) if--
                          ``(i) such corporation--
                                    ``(I) has a change in ownership, or
                                    ``(II) has a specified number (to be 
                                determined by the Secretary and which 
                                shall, as appropriate, take into account 
                                the facts and circumstances of the 
                                taxpayer) of consecutive taxable years, 
                                including the most recent taxable year, 
                                in which the corporation does not meet 
                                the average annual adjusted financial 
                                statement income test of subparagraph 
                                (B), and
                          ``(ii) the Secretary determines that it would 
                      not be appropriate to continue to treat such 
                      corporation as an applicable corporation.
                The preceding sentence shall not apply to any 
                corporation if, after the Secretary makes the 
                determination described in clause (ii), such corporation 
                meets the average annual adjusted financial statement 
                income test of subparagraph (B) for any taxable year 
                beginning after the first taxable year for which such 
                determination applies.
                    ``(D) <<NOTE: Definition.>>  Special rules for 
                determining applicable corporation status.--
                          ``(i) In general.--Solely for purposes of 
                      determining whether a corporation is an applicable 
                      corporation under this paragraph, all adjusted 
                      financial statement income of persons treated as a 
                      single employer with such corporation under 
                      subsection (a) or (b) of section 52 (determined 
                      with the modifications described in clause (ii)) 
                      shall be treated as adjusted financial

[[Page 136 STAT. 1820]]

                      statement income of such corporation, and adjusted 
                      financial statement income of such corporation 
                      shall be determined without regard to paragraphs 
                      (2)(D)(i) and (11) of section 56A(c).
                          ``(ii) Modifications.--For purposes of this 
                      subparagraph--
                                    ``(I) <<NOTE: Applicability.>>  
                                section 52(a) shall be applied by 
                                substituting `component members' for 
                                `members', and
                                    ``(II) for purposes of applying 
                                section 52(b), the term `trade or 
                                business' shall include any activity 
                                treated as a trade or business under 
                                paragraph (5) or (6) of section 469(c) 
                                (determined without regard to the phrase 
                                `To the extent provided in regulations' 
                                in such paragraph (6)).
                          ``(iii) Component member.--For purposes of 
                      this subparagraph, the term `component member' has 
                      the meaning given such term by section 1563(b), 
                      except that the determination shall be made 
                      without regard to section 1563(b)(2).
                    ``(E) Other special rules.--
                          ``(i) <<NOTE: Applicability.>>  Corporations 
                      in existence for less than 3 years.--If the 
                      corporation was in existence for less than 3-
                      taxable years, subparagraph (B) shall be applied 
                      on the basis of the period during which such 
                      corporation was in existence.
                          ``(ii) <<NOTE: Time period.>>  Short taxable 
                      years.--Adjusted financial statement income for 
                      any taxable year of less than 12 months shall be 
                      annualized by multiplying the adjusted financial 
                      statement income for the short period by 12 and 
                      dividing the result by the number of months in the 
                      short period.
                          ``(iii) Treatment of predecessors.--Any 
                      reference in this subparagraph to a corporation 
                      shall include a reference to any predecessor of 
                      such corporation.
            ``(2) Special rule for foreign-parented multinational 
        groups.--
                    ``(A) In general.--If a corporation is a member of a 
                foreign-parented multinational group for any taxable 
                year, then, solely for purposes of determining whether 
                such corporation meets the average annual adjusted 
                financial statement income test under paragraph 
                (1)(B)(ii)(I) for such taxable year, the adjusted 
                financial statement income of such corporation for such 
                taxable year shall include the adjusted financial 
                statement income of all members of such group. Solely 
                for purposes of this subparagraph, adjusted financial 
                statement income shall be determined without regard to 
                paragraphs (2)(D)(i), (3), (4), and (11) of section 
                56A(c).
                    ``(B) <<NOTE: Definition.>>  Foreign-parented 
                multinational group.--For purposes of subparagraph (A), 
                the term `foreign-parented multinational group' means, 
                with respect to any taxable year, two or more entities 
                if--
                          ``(i) at least one entity is a domestic 
                      corporation and another entity is a foreign 
                      corporation,

[[Page 136 STAT. 1821]]

                          ``(ii) such entities are included in the same 
                      applicable financial statement with respect to 
                      such year, and
                          ``(iii) either--
                                    ``(I) the common parent of such 
                                entities is a foreign corporation, or
                                    ``(II) if there is no common parent, 
                                the entities are treated as having a 
                                common parent which is a foreign 
                                corporation under subparagraph (D).
                    ``(C) Foreign corporations engaged in a trade or 
                business within the united states.--For purposes of this 
                paragraph, if a foreign corporation is engaged in a 
                trade or business within the United States, such trade 
                or business shall be treated as a separate domestic 
                corporation that is wholly owned by the foreign 
                corporation.
                    ``(D) <<NOTE: Applicability.>>  Other rules.--The 
                Secretary shall, applying the principles of this 
                section, prescribe rules for the application of this 
                paragraph, including rules for the determination of--
                          ``(i) the entities (if any) which are to be to 
                      be treated under subparagraph (B)(iii)(II) as 
                      having a common parent which is a foreign 
                      corporation,
                          ``(ii) the entities to be included in a 
                      foreign-parented multinational group, and
                          ``(iii) the common parent of a foreign-
                      parented multinational group.
            ``(3) Regulations or other guidance.--The Secretary shall 
        provide regulations or other guidance for the purposes of 
        carrying out this subsection, including regulations or other 
        guidance--
                    ``(A) providing a simplified method for determining 
                whether a corporation meets the requirements of 
                paragraph (1), and
                    ``'(B) addressing the application of this subsection 
                to a corporation that experiences a change in 
                ownership.''.
            (3) Reduction for base erosion and anti-abuse tax.--Section 
        55(a)(2) <<NOTE: 26 USC 55.>>  is amended by inserting ``plus, 
        in the case of an applicable corporation, the tax imposed by 
        section 59A'' before the period at the end.
            (4) Conforming amendments.--
                    (A) Section 55(a) is amended by striking ``In the 
                case of a taxpayer other than a corporation, there'' and 
                inserting ``There''.
                    (B)(i) Section 55(b)(1) is amended--
                          (I) by striking so much as precedes 
                      subparagraph (A) and inserting the following:
            ``(1) Noncorporate taxpayers.--In the case of a taxpayer 
        other than a corporation--'', and
                          (II) by adding at the end the following new 
                      subparagraph:
                    ``(D) <<NOTE: Definition.>>  Alternative minimum 
                taxable income.--The term `alternative minimum taxable 
                income' means the taxable income of the taxpayer for the 
                taxable year--
                          ``(i) determined with the adjustments provided 
                      in section 56 and section 58, and
                          ``(ii) increased by the amount of the items of 
                      tax preference described in section 57.

[[Page 136 STAT. 1822]]

                If a taxpayer is subject to the regular tax, such 
                taxpayer shall be subject to the tax imposed by this 
                section (and, if the regular tax is determined by 
                reference to an amount other than taxable income, such 
                amount shall be treated as the taxable income of such 
                taxpayer for purposes of the preceding sentence).''.
                    (ii) <<NOTE: 26 USC 860E.>>  Section 860E(a)(4) is 
                amended by striking ``55(b)(2)'' and inserting 
                ``55(b)(1)(D)''.
                    (iii) Section 897(a)(2)(A)(i) is amended by striking 
                ``55(b)(2)'' and inserting ``55(b)(1)(D)''.
                    (C) Section 11(d) is amended by striking ``the tax 
                imposed by subsection (a)'' and inserting ``the taxes 
                imposed by subsection (a) and section 55''.
                    (D) Section 12 is amended by adding at the end the 
                following new paragraph:
            ``(5) For alternative minimum tax, see section 55.''.
                    (E) Section 882(a)(1) is amended by inserting ``, 
                55,'' after ``section 11''.
                    (F) Section 6425(c)(1)(A) is amended to read as 
                follows:
                    ``(A) the sum of--
                          ``(i) the tax imposed by section 11 or 
                      subchapter L of chapter 1, whichever is 
                      applicable, plus
                          ``(ii) the tax imposed by section 55, plus
                          ``(iii) the tax imposed by section 59A, 
                      over''.
                    (G) Section 6655(e)(2) is amended by inserting ``, 
                adjusted financial statement income (as defined in 
                section 56A),'' before ``and modified taxable income'' 
                each place it appears in subparagraphs (A)(i) and 
                (B)(i).
                    (H) Section 6655(g)(1)(A) is amended by 
                redesignating clauses (ii) and (iii) as clauses (iii) 
                and (iv), respectively, and by inserting after clause 
                (i) the following new clause:
                          ``(ii) the tax imposed by section 55,''.

    (b) Adjusted Financial Statement Income.--
            (1) In general.--Part VI of subchapter A of chapter 1 is 
        amended by inserting after section 56 the following new section:
``SEC. 56A. <<NOTE: 26 USC 56A.>>  ADJUSTED FINANCIAL STATEMENT 
                        INCOME.

    ``(a) <<NOTE: Definition.>>  In General.--For purposes of this part, 
the term `adjusted financial statement income' means, with respect to 
any corporation for any taxable year, the net income or loss of the 
taxpayer set forth on the taxpayer's applicable financial statement for 
such taxable year, adjusted as provided in this section.

    ``(b) <<NOTE: Definition.>>  Applicable Financial Statement.--For 
purposes of this section, the term `applicable financial statement' 
means, with respect to any taxable year, an applicable financial 
statement (as defined in section 451(b)(3) or as specified by the 
Secretary in regulations or other guidance) which covers such taxable 
year.

    ``(c) General Adjustments.--
            ``(1) Statements covering different taxable years.--
        Appropriate adjustments shall be made in adjusted financial 
        statement income in any case in which an applicable financial 
        statement covers a period other than the taxable year.
            ``(2) Special rules for related entities.--
                    ``(A) <<NOTE: Applicability.>>  Consolidated 
                financial statements.--If the financial results of a 
                taxpayer are reported on the

[[Page 136 STAT. 1823]]

                applicable financial statement for a group of entities, 
                rules similar to the rules of section 451(b)(5) shall 
                apply.
                    ``(B) Consolidated returns.--Except as provided in 
                regulations prescribed by the Secretary, if the taxpayer 
                is part of an affiliated group of corporations filing a 
                consolidated return for any taxable year, adjusted 
                financial statement income for such group for such 
                taxable year shall take into account items on the 
                group's applicable financial statement which are 
                properly allocable to members of such group.
                    ``(C) Treatment of dividends and other amounts.--In 
                the case <<NOTE: Determination.>>  of any corporation 
                which is not included on a consolidated return with the 
                taxpayer, adjusted financial statement income of the 
                taxpayer with respect to such other corporation shall be 
                determined by only taking into account the dividends 
                received from such other corporation (reduced to the 
                extent provided by the Secretary in regulations or other 
                guidance) and other amounts which are includible in 
                gross income or deductible as a loss under this chapter 
                (other than amounts required to be included under 
                sections 951 and 951A or such other amounts as provided 
                by the Secretary) with respect to such other 
                corporation.
                    ``(D) Treatment of partnerships.--
                          ``(i) In general.--Except as provided by the 
                      Secretary, if the taxpayer is a partner in a 
                      partnership, adjusted financial statement income 
                      of the taxpayer with respect to such partnership 
                      shall be adjusted to only take into account the 
                      taxpayer's distributive share of adjusted 
                      financial statement income of such partnership.
                          ``(ii) Adjusted financial statement income of 
                      partnerships.--For the purposes of this part, the 
                      adjusted financial statement income of a 
                      partnership shall be the partnership's net income 
                      or loss set forth on such partnership's applicable 
                      financial statement (adjusted under rules similar 
                      to the rules of this section).
            ``(3) Adjustments to take into account certain items of 
        foreign income.--
                    ``(A) In general.--If, for any taxable year, a 
                taxpayer is a United States shareholder of one or more 
                controlled foreign corporations, the adjusted financial 
                statement income of such taxpayer with respect to such 
                controlled foreign corporation (as determined under 
                paragraph (2)(C)) shall be adjusted to also take into 
                account such taxpayer's pro rata share (determined under 
                rules similar to the rules under section 951(a)(2)) of 
                items taken into account in computing the net income or 
                loss set forth on the applicable financial statement (as 
                adjusted under rules similar to those that apply in 
                determining adjusted financial statement income) of each 
                such controlled foreign corporation with respect to 
                which such taxpayer is a United States shareholder.
                    ``(B) Negative adjustments.--In any case in which 
                the adjustment determined under subparagraph (A) would 
                result in a negative adjustment for such taxable year--

[[Page 136 STAT. 1824]]

                          ``(i) no adjustment shall be made under this 
                      paragraph for such taxable year, and
                          ``(ii) the amount of the adjustment determined 
                      under this paragraph for the succeeding taxable 
                      year (determined without regard to this paragraph) 
                      shall be reduced by an amount equal to the 
                      negative adjustment for such taxable year.
            ``(4) <<NOTE: Determination. Applicability.>>  Effectively 
        connected income.--In the case of a foreign corporation, to 
        determine adjusted financial statement income, the principles of 
        section 882 shall apply.
            ``(5) Adjustments for certain taxes.--Adjusted financial 
        statement income shall be appropriately adjusted to disregard 
        any Federal income taxes, or income, war profits, or excess 
        profits taxes (within the meaning of section 901) with respect 
        to a foreign country or possession of the United States, which 
        are taken into account on the taxpayer's applicable financial 
        statement. To the extent provided by the Secretary, the 
        preceding sentence shall not apply to income, war profits, or 
        excess profits taxes (within the meaning of section 901) that 
        are imposed by a foreign country or possession of the United 
        States and taken into account on the taxpayer's applicable 
        financial statement if the taxpayer does not choose to have the 
        benefits of subpart A of part III of subchapter N for the 
        taxable year. The Secretary shall 
        prescribe <<NOTE: Regulations. Guidelines.>>  such regulations 
        or other guidance as may be necessary and appropriate to provide 
        for the proper treatment of current and deferred taxes for 
        purposes of this paragraph, including the time at which such 
        taxes are properly taken into account.
            ``(6) Adjustment with respect to disregarded entities.--
        Adjusted financial statement income shall be adjusted to take 
        into account any adjusted financial statement income of a 
        disregarded entity owned by the taxpayer.
            ``(7) <<NOTE: Applicability.>>  Special rule for 
        cooperatives.--In the case of a cooperative to which section 
        1381 applies, the adjusted financial statement income 
        (determined without regard to this paragraph) shall be reduced 
        by the amounts referred to in section 1382(b) (relating to 
        patronage dividends and per-unit retain allocations) to the 
        extent such amounts were not otherwise taken into account in 
        determining adjusted financial statement income.
            ``(8) Rules for alaska native corporations.--Adjusted 
        financial statement income shall be appropriately adjusted to 
        allow--
                    ``(A) cost recovery and depletion attributable to 
                property the basis of which is determined under section 
                21(c) of the Alaska Native Claims Settlement Act (43 
                U.S.C. 1620(c)), and
                    ``(B) deductions for amounts payable made pursuant 
                to section 7(i) or section 7(j) of such Act (43 U.S.C. 
                1606(i) and 1606(j)) only at such time as the deductions 
                are allowed for tax purposes.
            ``(9) Amounts attributable to elections for direct payment 
        of certain credits.--Adjusted financial statement income shall 
        be appropriately adjusted to disregard any amount treated as a 
        payment against the tax imposed by subtitle A pursuant to an 
        election under section 48D(d) or 6417, to the

[[Page 136 STAT. 1825]]

        extent such amount was not otherwise taken into account under 
        paragraph (5).
            ``(10) Consistent treatment of mortgage servicing income of 
        taxpayer other than a regulated investment company.--
                    ``(A) In general.--Adjusted financial statement 
                income shall be adjusted so as not to include any item 
                of income in connection with a mortgage servicing 
                contract any earlier than when such income is included 
                in gross income under any other provision of this 
                chapter.
                    ``(B) Rules for amounts not representing reasonable 
                compensation.-- <<NOTE: Determination.>> The Secretary 
                shall provide regulations to prevent the avoidance of 
                taxes imposed by this chapter with respect to amounts 
                not representing reasonable compensation (as determined 
                by the Secretary) with respect to a mortgage servicing 
                contract.
            ``(11) Adjustment with respect to defined benefit 
        pensions.--
                    ``(A) <<NOTE: Regulations. Guidelines.>>  In 
                general.--Except as otherwise provided in rules 
                prescribed by the Secretary in regulations or other 
                guidance, adjusted financial statement income shall be--
                          ``(i) adjusted to disregard any amount of 
                      income, cost, or expense that would otherwise be 
                      included on the applicable financial statement in 
                      connection with any covered benefit plan,
                          ``(ii) increased by any amount of income in 
                      connection with any such covered benefit plan that 
                      is included in the gross income of the corporation 
                      under any other provision of this chapter, and
                          ``(iii) reduced by deductions allowed under 
                      any other provision of this chapter with respect 
                      to any such covered benefit plan.
                    ``(B) <<NOTE: Definition.>>  Covered benefit plan.--
                For purposes of this paragraph, the term `covered 
                benefit plan' means--
                          ``(i) a defined benefit plan (other than a 
                      multiemployer plan described in section 414(f)) if 
                      the trust which is part of such plan is an 
                      employees' trust described in section 401(a) which 
                      is exempt from tax under section 501(a),
                          ``(ii) any qualified foreign plan (as defined 
                      in section 404A(e)), or
                          ``(iii) any other defined benefit plan which 
                      provides post-employment benefits other than 
                      pension benefits.
            ``(12) Tax-exempt entities.--In the case of an organization 
        subject to tax under section 511, adjusted financial statement 
        income shall be appropriately adjusted to only take into account 
        any adjusted financial statement income--
                    ``(A) of an unrelated trade or business (as defined 
                in section 513) of such organization, or
                    ``(B) derived from debt-financed property (as 
                defined in section 514) to the extent that income from 
                such property is treated as unrelated business taxable 
                income.
            ``(13) Depreciation.--Adjusted financial statement income 
        shall be--
                    ``(A) <<NOTE: Applicability.>>  reduced by 
                depreciation deductions allowed under section 167 with 
                respect to property to which section 168

[[Page 136 STAT. 1826]]

                applies to the extent of the amount allowed as 
                deductions in computing taxable income for the taxable 
                year, and
                    ``(B) appropriately adjusted--
                          ``(i) to disregard any amount of depreciation 
                      expense that is taken into account on the 
                      taxpayer's applicable financial statement with 
                      respect to such property, and
                          ``(ii) to take into account any other item 
                      specified by the Secretary in order to provide 
                      that such property is accounted for in the same 
                      manner as it is accounted for under this chapter.
            ``(14) Qualified wireless spectrum.--
                    ``(A) In general.--Adjusted financial statement 
                income shall be--
                          ``(i) reduced by amortization deductions 
                      allowed under section 197 with respect to 
                      qualified wireless spectrum to the extent of the 
                      amount allowed as deductions in computing taxable 
                      income for the taxable year, and
                          ``(ii) appropriately adjusted--
                                    ``(I) to disregard any amount of 
                                amortization expense that is taken into 
                                account on the taxpayer's applicable 
                                financial statement with respect to such 
                                qualified wireless spectrum, and
                                    ``(II) to take into account any 
                                other item specified by the Secretary in 
                                order to provide that such qualified 
                                wireless spectrum is accounted for in 
                                the same manner as it is accounted for 
                                under this chapter.
                    ``(B) <<NOTE: Definition.>>  Qualified wireless 
                spectrum.--For purposes of this paragraph, the term 
                `qualified wireless spectrum' means wireless spectrum 
                which--
                          ``(i) is used in the trade or business of a 
                      wireless telecommunications carrier, and
                          ``(ii) <<NOTE: Effective date.>>  was acquired 
                      after December 31, 2007, and before the date of 
                      enactment of this section.
            ``(15) <<NOTE: Regulations. Guidelines. Determination.>>  
        Secretarial authority to adjust items.--The Secretary shall 
        issue regulations or other guidance to provide for such 
        adjustments to adjusted financial statement income as the 
        Secretary determines necessary to carry out the purposes of this 
        section, including adjustments--
                    ``(A) to prevent the omission or duplication of any 
                item, and
                    ``(B) to carry out the principles of part II of 
                subchapter C of this chapter (relating to corporate 
                liquidations), part III of subchapter C of this chapter 
                (relating to corporate organizations and 
                reorganizations), and part II of subchapter K of this 
                chapter (relating to partnership contributions and 
                distributions).

    ``(d) <<NOTE: Determinations.>>  Deduction for Financial Statement 
Net Operating Loss.--
            ``(1) In general.--Adjusted financial statement income 
        (determined after application of subsection (c) and without 
        regard to this subsection) shall be reduced by an amount equal 
        to the lesser of--
                    ``(A) the aggregate amount of financial statement 
                net operating loss carryovers to the taxable year, or

[[Page 136 STAT. 1827]]

                    ``(B) 80 percent of adjusted financial statement 
                income computed without regard to the deduction 
                allowable under this subsection.
            ``(2) Financial statement net operating loss carryover.--A 
        financial statement net operating loss for any taxable year 
        shall be a financial statement net operating loss carryover to 
        each taxable year following the taxable year of the loss. The 
        portion of such loss which shall be carried to subsequent 
        taxable years shall be the amount of such loss remaining (if 
        any) after the application of paragraph (1).
            ``(3) <<NOTE: Effective date.>>  Financial statement net 
        operating loss defined.--For purposes of this subsection, the 
        term `financial statement net operating loss' means the amount 
        of the net loss (if any) set forth on the corporation's 
        applicable financial statement (determined after application of 
        subsection (c) and without regard to this subsection) for 
        taxable years ending after December 31, 2019.

    ``(e) Regulations and Other Guidance.--The Secretary shall provide 
for such regulations and other guidance as necessary to carry out the 
purposes of this section, including regulations and other guidance 
relating to the effect of the rules of this section on partnerships with 
income taken into account by an applicable corporation.''.
            (2) Clerical amendment.--The table of sections for part VI 
        of subchapter A of chapter 1 <<NOTE: 26 USC 55 prec.>>  is 
        amended by inserting after the item relating to section 56 the 
        following new item:

``Sec. 56A. Adjusted financial statement income.''.

    (c) Corporate AMT Foreign Tax Credit.--Section 59, as amended by 
this section, <<NOTE: 26 USC 59.>>  is amended by adding at the end the 
following new subsection:

    ``(l) Corporate AMT Foreign Tax Credit.--
            ``(1) In general.--For purposes of this part, if an 
        applicable corporation chooses to have the benefits of subpart A 
        of part III of subchapter N for any taxable year, the corporate 
        AMT foreign tax credit for the taxable year of the applicable 
        corporation is an amount equal to sum of--
                    ``(A) the lesser of--
                          ``(i) <<NOTE: Determination.>>  the aggregate 
                      of the applicable corporation's pro rata share (as 
                      determined under section 56A(c)(3)) of the amount 
                      of income, war profits, and excess profits taxes 
                      (within the meaning of section 901) imposed by any 
                      foreign country or possession of the United States 
                      which are--
                                    ``(I) taken into account on the 
                                applicable financial statement of each 
                                controlled foreign corporation with 
                                respect to which the applicable 
                                corporation is a United States 
                                shareholder, and
                                    ``(II) paid or accrued (for Federal 
                                income tax purposes) by each such 
                                controlled foreign corporation, or
                          ``(ii) the product of the amount of the 
                      adjustment under section 56A(c)(3) and the 
                      percentage specified in section 55(b)(2)(A)(i), 
                      and
                    ``(B) in the case of an applicable corporation that 
                is a domestic corporation, the amount of income, war 
                profits, and excess profits taxes (within the meaning of 
                section

[[Page 136 STAT. 1828]]

                901) imposed by any foreign country or possession of the 
                United States to the extent such taxes are--
                          ``(i) taken into account on the applicable 
                      corporation's applicable financial statement, and
                          ``(ii) paid or accrued (for Federal income tax 
                      purposes) by the applicable corporation.
            ``(2) <<NOTE: Time period.>>  Carryover of excess tax 
        paid.--For any taxable year for which an applicable corporation 
        chooses to have the benefits of subpart A of part III of 
        subchapter N, the excess of the amount described in paragraph 
        (1)(A)(i) over the amount described in paragraph (1)(A)(ii) 
        shall increase the amount described in paragraph (1)(A)(i) in 
        any of the first 5 succeeding taxable years to the extent not 
        taken into account in a prior taxable year.
            ``(3) Regulations or other guidance.--The Secretary shall 
        provide for such regulations or other guidance as is necessary 
        to carry out the purposes of this subsection.''.

    (d) Treatment of General Business Credit.--Section 
38(c)(6)(E) <<NOTE: 26 USC 38.>>  is amended to read as follows:
                    ``(E) <<NOTE: Applicability.>>  Corporations.--In 
                the case of a corporation--
                          ``(i) the first sentence of paragraph (1) 
                      shall be applied by substituting `25 percent of 
                      the taxpayer's net income tax as exceeds $25,000' 
                      for `the greater of' and all that follows,
                          ``(ii) paragraph (2)(A) shall be applied 
                      without regard to clause (ii)(I) thereof, and
                          ``(iii) paragraph (4)(A) shall be applied 
                      without regard to clause (ii)(I) thereof.''.

    (e) Credit for Prior Year Minimum Tax Liability.--
            (1) In general.--Section 53(e) is amended to read as 
        follows:

    ``(e) Application to Applicable Corporations.--In the case of a 
corporation--
            ``(1) subsection (b)(1) shall be applied by substituting 
        `the net minimum tax for all prior taxable years beginning after 
        2022' for `the adjusted net minimum tax imposed for all prior 
        taxable years beginning after 1986', and
            ``(2) the amount determined under subsection (c)(1) shall be 
        increased by the amount of tax imposed under section 59A for the 
        taxable year.''.
            (2) Conforming amendments.--Section 53(d) is amended--
                    (A) in paragraph (2), by striking ``, except that in 
                the case'' and all that follows through ``treated as 
                zero'', and
                    (B) by striking paragraph (3).

    (f) <<NOTE: 26 USC 11 note.>>  Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after December 
31, 2022.

           PART 2--EXCISE TAX ON REPURCHASE OF CORPORATE STOCK

SEC. 10201. EXCISE TAX ON REPURCHASE OF CORPORATE STOCK.

    (a) In General.--Subtitle D is amended by inserting after chapter 36 
the following new chapter:

[[Page 136 STAT. 1829]]

``CHAPTER 37 <<NOTE: 26 USC 4501 prec.>> --REPURCHASE OF CORPORATE STOCK

``Sec. 4501. Repurchase of corporate stock.

``SEC. 4501. <<NOTE: 26 USC 4501.>>  REPURCHASE OF CORPORATE 
                          STOCK.

    ``(a) General Rule.--There is hereby imposed on each covered 
corporation a tax equal to 1 percent of the fair market value of any 
stock of the corporation which is repurchased by such corporation during 
the taxable year.
    ``(b) <<NOTE: Definition.>>  Covered Corporation.--For purposes of 
this section, the term `covered corporation' means any domestic 
corporation the stock of which is traded on an established securities 
market (within the meaning of section 7704(b)(1)).

    ``(c) <<NOTE: Definitions.>>  Repurchase.--For purposes of this 
section--
            ``(1) In general.--The term `repurchase' means--
                    ``(A) a redemption within the meaning of section 
                317(b) with regard to the stock of a covered 
                corporation, and
                    ``(B) <<NOTE: Determination.>>  any transaction 
                determined by the Secretary to be economically similar 
                to a transaction described in subparagraph (A).
            ``(2) Treatment of purchases by specified affiliates.--
                    ``(A) In general.--The acquisition of stock of a 
                covered corporation by a specified affiliate of such 
                covered corporation, from a person who is not the 
                covered corporation or a specified affiliate of such 
                covered corporation, shall be treated as a repurchase of 
                the stock of the covered corporation by such covered 
                corporation.
                    ``(B) Specified affiliate.--For purposes of this 
                section, the term `specified affiliate' means, with 
                respect to any corporation--
                          ``(i) any corporation more than 50 percent of 
                      the stock of which is owned (by vote or by value), 
                      directly or indirectly, by such corporation, and
                          ``(ii) any partnership more than 50 percent of 
                      the capital interests or profits interests of 
                      which is held, directly or indirectly, by such 
                      corporation.
            ``(3) Adjustment.--The amount taken into account under 
        subsection (a) with respect to any stock repurchased by a 
        covered corporation shall be reduced by the fair market value of 
        any stock issued by the covered corporation during the taxable 
        year, including the fair market value of any stock issued or 
        provided to employees of such covered corporation or employees 
        of a specified affiliate of such covered corporation during the 
        taxable year, whether or not such stock is issued or provided in 
        response to the exercise of an option to purchase such stock.

    ``(d) <<NOTE: Determinations.>>  Special Rules for Acquisition of 
Stock of Certain Foreign Corporations.--
            ``(1) In general.--In the case of an acquisition of stock of 
        an applicable foreign corporation by a specified affiliate of 
        such corporation (other than a foreign corporation or a foreign 
        partnership (unless such partnership has a domestic entity as a 
        direct or indirect partner)) from a person who is not the 
        applicable foreign corporation or a specified affiliate of such 
        applicable foreign corporation, for purposes of this section--

[[Page 136 STAT. 1830]]

                    ``(A) such specified affiliate shall be treated as a 
                covered corporation with respect to such acquisition,
                    ``(B) such acquisition shall be treated as a 
                repurchase of stock of a covered corporation by such 
                covered corporation, and
                    ``(C) the adjustment under subsection (c)(3) shall 
                be determined only with respect to stock issued or 
                provided by such specified affiliate to employees of the 
                specified affiliate.
            ``(2) Surrogate foreign corporations.--In the case of a 
        repurchase of stock of a covered surrogate foreign corporation 
        by such covered surrogate foreign corporation, or an acquisition 
        of stock of a covered surrogate foreign corporation by a 
        specified affiliate of such corporation, for purposes of this 
        section--
                    ``(A) the expatriated entity with respect to such 
                covered surrogate foreign corporation shall be treated 
                as a covered corporation with respect to such repurchase 
                or acquisition,
                    ``(B) such repurchase or acquisition shall be 
                treated as a repurchase of stock of a covered 
                corporation by such covered corporation, and
                    ``(C) the adjustment under subsection (c)(3) shall 
                be determined only with respect to stock issued or 
                provided by such expatriated entity to employees of the 
                expatriated entity.
            ``(3) Definitions.--For purposes of this subsection--
                    ``(A) Applicable foreign corporation.--The term 
                `applicable foreign corporation' means any foreign 
                corporation the stock of which is traded on an 
                established securities market (within the meaning of 
                section 7704(b)(1)).
                    ``(B) Covered surrogate foreign corporation.--The 
                term `covered surrogate foreign corporation' means any 
                surrogate foreign corporation (as determined under 
                section 7874(a)(2)(B) by substituting `September 20, 
                2021' for `March 4, 2003' each place it appears) the 
                stock of which is traded on an established securities 
                market (within the meaning of section 7704(b)(1)), but 
                only with respect to taxable years which include any 
                portion of the applicable period with respect to such 
                corporation under section 7874(d)(1).
                    ``(C) Expatriated entity.--The term `expatriated 
                entity' has the meaning given such term by section 
                7874(a)(2)(A).

    ``(e) Exceptions.--Subsection (a) shall not apply--
            ``(1) to the extent that the repurchase is part of a 
        reorganization (within the meaning of section 368(a)) and no 
        gain or loss is recognized on such repurchase by the shareholder 
        under chapter 1 by reason of such reorganization,
            ``(2) in any case in which the stock repurchased is, or an 
        amount of stock equal to the value of the stock repurchased is, 
        contributed to an employer-sponsored retirement plan, employee 
        stock ownership plan, or similar plan,
            ``(3) in any case in which the total value of the stock 
        repurchased during the taxable year does not exceed $1,000,000,
            ``(4) under regulations prescribed by the Secretary, in 
        cases in which the repurchase is by a dealer in securities in 
        the ordinary course of business,

[[Page 136 STAT. 1831]]

            ``(5) to repurchases by a regulated investment company (as 
        defined in section 851) or a real estate investment trust, or
            ``(6) to the extent that the repurchase is treated as a 
        dividend for purposes of this title.

    ``(f) Regulations and Guidance.--The Secretary shall prescribe such 
regulations and other guidance as are necessary or appropriate to carry 
out, and to prevent the avoidance of, the purposes of this section, 
including regulations and other guidance--
            ``(1) to prevent the abuse of the exceptions provided by 
        subsection (e),
            ``(2) to address special classes of stock and preferred 
        stock, and
            ``(3) for the application of the rules under subsection 
        (d).''.

    (b) Tax Not Deductible.--Paragraph (6) of section 275(a) <<NOTE: 26 
USC 275.>>  is amended by inserting ``37,'' before ``41''.

    (c) Clerical Amendment.--The table of chapters for subtitle D 
is <<NOTE: 26 USC 4001 prec.>>  amended by inserting after the item 
relating to chapter 36 the following new item:

             ``Chapter 37--Repurchase of Corporate Stock''.

    (d) <<NOTE: 26 USC 4501 note.>>  Effective Date.--The amendments 
made by this section shall apply to repurchases (within the meaning of 
section 4501(c) of the Internal Revenue Code of 1986, as added by this 
section) of stock after December 31, 2022.

  PART 3--FUNDING THE INTERNAL REVENUE SERVICE AND IMPROVING TAXPAYER 
                               COMPLIANCE

SEC. 10301. ENHANCEMENT OF INTERNAL REVENUE SERVICE RESOURCES.

    In General.--The following sums are appropriated, out of any money 
in the Treasury not otherwise appropriated, for the fiscal year ending 
September 30, 2022:
            (1) Internal revenue service.--
                    (A) In general.--
                          (i) Taxpayer services.--For necessary expenses 
                      of the Internal Revenue Service to provide 
                      taxpayer services, including pre-filing assistance 
                      and education, filing and account services, 
                      taxpayer advocacy services, and other services as 
                      authorized by 5 U.S.C. 3109, at such rates as may 
                      be determined by the Commissioner, $3,181,500,000, 
                      to remain available until September 30, 2031: 
                      Provided, That these amounts shall be in addition 
                      to amounts otherwise available for such purposes.
                          (ii) Enforcement.--For necessary expenses for 
                      tax enforcement activities of the Internal Revenue 
                      Service to determine and collect owed taxes, to 
                      provide legal and litigation support, to conduct 
                      criminal investigations (including investigative 
                      technology), to provide digital asset monitoring 
                      and compliance activities, to enforce criminal 
                      statutes related to violations of internal revenue 
                      laws and other financial crimes, to purchase and 
                      hire passenger motor vehicles (31 U.S.C.

[[Page 136 STAT. 1832]]

                      1343(b)), and to provide other services as 
                      authorized by 5 U.S.C. 3109, at such rates as may 
                      be determined by the Commissioner, 
                      $45,637,400,000, to remain available until 
                      September 30, 2031: Provided, That these amounts 
                      shall be in addition to amounts otherwise 
                      available for such purposes.
                          (iii) Operations support.--For necessary 
                      expenses of the Internal Revenue Service to 
                      support taxpayer services and enforcement 
                      programs, including rent payments; facilities 
                      services; printing; postage; physical security; 
                      headquarters and other IRS-wide administration 
                      activities; research and statistics of income; 
                      telecommunications; information technology 
                      development, enhancement, operations, maintenance, 
                      and security; the hire of passenger motor vehicles 
                      (31 U.S.C. 1343(b)); the operations of the 
                      Internal Revenue Service Oversight Board; and 
                      other services as authorized by 5 U.S.C. 3109, at 
                      such rates as may be determined by the 
                      Commissioner, $25,326,400,000, to remain available 
                      until September 30, 2031: Provided, That these 
                      amounts shall be in addition to amounts otherwise 
                      available for such purposes.
                          (iv) Business systems modernization.--For 
                      necessary expenses of the Internal Revenue 
                      Service's business systems modernization program, 
                      including development of callback technology and 
                      other technology to provide a more personalized 
                      customer service but not including the operation 
                      and maintenance of legacy systems, $4,750,700,000, 
                      to remain available until September 30, 2031: 
                      Provided, That these amounts shall be in addition 
                      to amounts otherwise available for such purposes.
                    (B) Task force to design an irs-run free ``direct 
                efile'' tax return system.--For necessary expenses of 
                the Internal Revenue Service to deliver to Congress, 
                within nine months following the date of the enactment 
                of this Act, a report on (I) the cost (including options 
                for differential coverage based on taxpayer adjusted 
                gross income and return complexity) of developing and 
                running a free direct efile tax return system, including 
                costs to build and administer each release, with a focus 
                on multi-lingual and mobile-friendly features and 
                safeguards for taxpayer data; (II) taxpayer opinions, 
                expectations, and level of trust, based on surveys, for 
                such a free direct efile system; and (III) the opinions 
                of an independent third-party on the overall 
                feasibility, approach, schedule, cost, organizational 
                design, and Internal Revenue Service capacity to deliver 
                such a direct efile tax return system, $15,000,000, to 
                remain available until September 30, 2023: Provided, 
                That these amounts shall be in addition to amounts 
                otherwise available for such purposes.
            (2) Treasury inspector general for tax administration.--For 
        necessary expenses of the Treasury Inspector General for Tax 
        Administration in carrying out the Inspector General Act of 
        1978, as amended, including purchase and hire of passenger motor 
        vehicles (31 U.S.C. 1343(b)); and services

[[Page 136 STAT. 1833]]

        authorized by 5 U.S.C. 3109, at such rates as may be determined 
        by the Inspector General for Tax Administration, $403,000,000, 
        to remain available until September 30, 2031: Provided, That 
        these amounts shall be in addition to amounts otherwise 
        available for such purposes.
            (3) Office of tax policy.--For necessary expenses of the 
        Office of Tax Policy of the Department of the Treasury to carry 
        out functions related to promulgating regulations under the 
        Internal Revenue Code of 1986, $104,533,803, to remain available 
        until September 30, 2031: Provided, That these amounts shall be 
        in addition to amounts otherwise available for such purposes.
            (4) United states tax court.--For necessary expenses of the 
        United States Tax Court, including contract reporting and other 
        services as authorized by 5 U.S.C. 3109; $153,000,000, to remain 
        available until September 30, 2031: Provided, That these amounts 
        shall be in addition to amounts otherwise available for such 
        purposes.
            (5) Treasury departmental offices.--For necessary expenses 
        of the Departmental Offices of the Department of the Treasury to 
        provide for oversight and implementation support for actions by 
        the Internal Revenue Service to implement this Act and the 
        amendments made by this Act, $50,000,000, to remain available 
        until September 30, 2031: Provided, That these amounts shall be 
        in addition to amounts otherwise available for such purposes.

              Subtitle B--Prescription Drug Pricing Reform

         PART 1--LOWERING PRICES THROUGH DRUG PRICE NEGOTIATION

SEC. 11001. PROVIDING FOR LOWER PRICES FOR CERTAIN HIGH-PRICED 
                            SINGLE SOURCE DRUGS.

    (a) Program To Lower Prices for Certain High-Priced Single Source 
Drugs.--Title XI of the Social Security Act is amended by adding after 
section 1184 (42 U.S.C. 1320e-3) the following new part:

  ``PART E--PRICE NEGOTIATION PROGRAM TO LOWER PRICES FOR CERTAIN HIGH-
                       PRICED SINGLE SOURCE DRUGS

``SEC. 1191. <<NOTE: 42 USC 1320f.>>  ESTABLISHMENT OF PROGRAM.

    ``(a) In General.--The Secretary shall establish a Drug Price 
Negotiation Program (in this part referred to as the `program'). Under 
the program, with respect to each price applicability period, the 
Secretary shall--
            ``(1) <<NOTE: Publication. Lists.>>  publish a list of 
        selected drugs in accordance with section 1192;
            ``(2) <<NOTE: Contracts.>>  enter into agreements with 
        manufacturers of selected drugs with respect to such period, in 
        accordance with section 1193;

[[Page 136 STAT. 1834]]

            ``(3) negotiate and, if applicable, renegotiate maximum fair 
        prices for such selected drugs, in accordance with section 1194;
            ``(4) carry out the publication and administrative duties 
        and compliance monitoring in accordance with sections 1195 and 
        1196.

    ``(b) Definitions Relating to Timing.--For purposes of this part:
            ``(1) Initial price applicability year.--The term `initial 
        price applicability year' means a year (beginning with 2026).
            ``(2) Price applicability period.--The term `price 
        applicability period' means, with respect to a qualifying single 
        source drug, the period beginning with the first initial price 
        applicability year with respect to which such drug is a selected 
        drug and ending with the last year during which the drug is a 
        selected drug.
            ``(3) Selected drug publication date.--The term `selected 
        drug publication date' means, with respect to each initial price 
        applicability year, February 1 of the year that begins 2 years 
        prior to such year.
            ``(4) Negotiation period.--The term `negotiation period' 
        means, with respect to an initial price applicability year with 
        respect to a selected drug, the period--
                    ``(A) beginning on the sooner of--
                          ``(i) the date on which the manufacturer of 
                      the drug and the Secretary enter into an agreement 
                      under section 1193 with respect to such drug; or
                          ``(ii) February 28 following the selected drug 
                      publication date with respect to such selected 
                      drug; and
                    ``(B) ending on November 1 of the year that begins 2 
                years prior to the initial price applicability year.

    ``(c) Other Definitions.--For purposes of this part:
            ``(1) Manufacturer.--The term `manufacturer' has the meaning 
        given that term in section 1847A(c)(6)(A).
            ``(2) Maximum fair price eligible individual.--The term 
        `maximum fair price eligible individual' means, with respect to 
        a selected drug--
                    ``(A) in the case such drug is dispensed to the 
                individual at a pharmacy, by a mail order service, or by 
                another dispenser, an individual who is enrolled in a 
                prescription drug plan under part D of title XVIII or an 
                MA-PD plan under part C of such title if coverage is 
                provided under such plan for such selected drug; and
                    ``(B) in the case such drug is furnished or 
                administered to the individual by a hospital, physician, 
                or other provider of services or supplier, an individual 
                who is enrolled under part B of title XVIII, including 
                an individual who is enrolled in an MA plan under part C 
                of such title, if payment may be made under part B for 
                such selected drug.
            ``(3) Maximum fair price.--The term `maximum fair price' 
        means, with respect to a year during a price applicability 
        period and with respect to a selected drug (as defined in 
        section 1192(c)) with respect to such period, the price 
        negotiated pursuant to section 1194, and updated pursuant to 
        section 1195(b), as applicable, for such drug and year.

[[Page 136 STAT. 1835]]

            ``(4) Reference product.--The term `reference product' has 
        the meaning given such term in section 351(i) of the Public 
        Health Service Act.
            ``(5) Total expenditures.--The term `total expenditures' 
        includes, in the case of expenditures with respect to part D of 
        title XVIII, the total gross covered prescription drug costs (as 
        defined in section 1860D-15(b)(3)). The term `total 
        expenditures' excludes, in the case of expenditures with respect 
        to part B of such title, expenditures for a drug or biological 
        product that are bundled or packaged into the payment for 
        another service.
            ``(6) Unit.--The term `unit' means, with respect to a drug 
        or biological product, the lowest identifiable amount (such as a 
        capsule or tablet, milligram of molecules, or grams) of the drug 
        or biological product that is dispensed or furnished.

    ``(d) <<NOTE: Regulations. Applicability.>>  Timing for Initial 
Price Applicability Year 2026.--Notwithstanding the provisions of this 
part, in the case of initial price applicability year 2026, the 
following rules shall apply for purposes of implementing the program:
            ``(1) Subsection (b)(3) shall be applied by substituting 
        `September 1, 2023' for `, with respect to each initial price 
        applicability year, February 1 of the year that begins 2 years 
        prior to such year'.
            ``(2) Subsection (b)(4) shall be applied--
                    ``(A) in subparagraph (A)(ii), by substituting 
                `October 1, 2023' for `February 28 following the 
                selected drug publication date with respect to such 
                selected drug'; and
                    ``(B) in subparagraph (B), by substituting `August 
                1, 2024' for `November 1 of the year that begins 2 years 
                prior to the initial price applicability year'.
            ``(3) Section 1192 shall be applied--
                    ``(A) in subsection (b)(1)(A), by substituting 
                `during the period beginning on June 1, 2022, and ending 
                on May 31, 2023' for `during the most recent period of 
                12 months prior to the selected drug publication date 
                (but ending not later than October 31 of the year prior 
                to the year of such drug publication date), with respect 
                to such year, for which data are available'; and
                    ``(B) in subsection (d)(1)(A), by substituting 
                `during the period beginning on June 1, 2022, and ending 
                on May 31, 2023' for `during the most recent period for 
                which data are available of at least 12 months prior to 
                the selected drug publication date (but ending no later 
                than October 31 of the year prior to the year of such 
                drug publication date), with respect to such year'.
            ``(4) Section 1193(a) shall be applied by substituting 
        `October 1, 2023' for `February 28 following the selected drug 
        publication date with respect to such selected drug'.
            ``(5) Section 1194(b)(2) shall be applied--
                    ``(A) in subparagraph (A), by substituting `October 
                2, 2023' for `March 1 of the year of the selected drug 
                publication date, with respect to the selected drug';
                    ``(B) in subparagraph (B), by substituting `February 
                1, 2024' for `the June 1 following the selected drug 
                publication date'; and
                    ``(C) in subparagraph (E), by substituting `August 
                1, 2024' for `the first day of November following the 
                selected

[[Page 136 STAT. 1836]]

                drug publication date, with respect to the initial price 
                applicability year '.
            ``(6) Section 1195(a)(1) shall be applied by substituting 
        `September 1, 2024' for `November 30 of the year that is 2 years 
        prior to such initial price applicability year'.
``SEC. 1192. <<NOTE: 42 USC 1320f-1.>>  SELECTION OF NEGOTIATION-
                          ELIGIBLE DRUGS AS SELECTED DRUGS.

    ``(a) <<NOTE: Deadlines. Publication. List. Time periods.>>  In 
General.--Not later than the selected drug publication date with respect 
to an initial price applicability year, in accordance with subsection 
(b), the Secretary shall select and publish a list of--
            ``(1) with respect to the initial price applicability year 
        2026, 10 negotiation-eligible drugs described in subparagraph 
        (A) of subsection (d)(1), but not subparagraph (B) of such 
        subsection, with respect to such year (or, all (if such number 
        is less than 10) such negotiation-eligible drugs with respect to 
        such year);
            ``(2) with respect to the initial price applicability year 
        2027, 15 negotiation-eligible drugs described in subparagraph 
        (A) of subsection (d)(1), but not subparagraph (B) of such 
        subsection, with respect to such year (or, all (if such number 
        is less than 15) such negotiation-eligible drugs with respect to 
        such year);
            ``(3) with respect to the initial price applicability year 
        2028, 15 negotiation-eligible drugs described in subparagraph 
        (A) or (B) of subsection (d)(1) with respect to such year (or, 
        all (if such number is less than 15) such negotiation-eligible 
        drugs with respect to such year); and
            ``(4) with respect to the initial price applicability year 
        2029 or a subsequent year, 20 negotiation-eligible drugs 
        described in subparagraph (A) or (B) of subsection (d)(1), with 
        respect to such year (or, all (if such number is less than 20) 
        such negotiation-eligible drugs with respect to such year).

Subject to subsection (c)(2) and section 1194(f)(5), each drug published 
on the list pursuant to the previous sentence shall be subject to the 
negotiation process under section 1194 for the negotiation period with 
respect to such initial price applicability year (and the renegotiation 
process under such section as applicable for any subsequent year during 
the applicable price applicability period).
    ``(b) Selection of Drugs.--
            ``(1) In general.--In carrying out subsection (a), subject 
        to paragraph (2), the Secretary shall, with respect to an 
        initial price applicability year, do the following:
                    ``(A) <<NOTE: Determination. Time periods.>>  Rank 
                negotiation-eligible drugs described in subsection 
                (d)(1) according to the total expenditures for such 
                drugs under parts B and D of title XVIII, as determined 
                by the Secretary, during the most recent period of 12 
                months prior to the selected drug publication date (but 
                ending not later than October 31 of the year prior to 
                the year of such drug publication date), with respect to 
                such year, for which data are available, with the 
                negotiation-eligible drugs with the highest total 
                expenditures being ranked the highest.
                    ``(B) Select from such ranked drugs with respect to 
                such year the negotiation-eligible drugs with the 
                highest such rankings.
            ``(2) <<NOTE: Applicability.>>  High spend part d drugs for 
        2026 and 2027.--With respect to the initial price applicability 
        year 2026 and with

[[Page 136 STAT. 1837]]

        respect to the initial price applicability year 2027, the 
        Secretary shall apply paragraph (1) as if the reference to 
        `negotiation-eligible drugs described in subsection (d)(1)' were 
        a reference to `negotiation-eligible drugs described in 
        subsection (d)(1)(A)' and as if the reference to `total 
        expenditures for such drugs under parts B and D of title XVIII' 
        were a reference to `total expenditures for such drugs under 
        part D of title XVIII'.

    ``(c) Selected Drug.--
            ``(1) <<NOTE: Time period. Determination.>>  In general.--
        For purposes of this part, in accordance with subsection (e)(2) 
        and subject to paragraph (2), each negotiation-eligible drug 
        included on the list published under subsection (a) with respect 
        to an initial price applicability year shall be referred to as a 
        `selected drug' with respect to such year and each subsequent 
        year beginning before the first year that begins at least 9 
        months after the date on which the Secretary determines at least 
        one drug or biological product--
                    ``(A) is approved or licensed (as applicable)--
                          ``(i) under section 505(j) of the Federal 
                      Food, Drug, and Cosmetic Act using such drug as 
                      the listed drug; or
                          ``(ii) under section 351(k) of the Public 
                      Health Service Act using such drug as the 
                      reference product; and
                    ``(B) is marketed pursuant to such approval or 
                licensure.
            ``(2) Clarification.--A negotiation-eligible drug--
                    ``(A) that is included on the list published under 
                subsection (a) with respect to an initial price 
                applicability year; and
                    ``(B) for which the Secretary makes a determination 
                described in paragraph (1) before or during the 
                negotiation period with respect to such initial price 
                applicability year;
        shall not be subject to the negotiation process under section 
        1194 with respect to such negotiation period and shall continue 
        to be considered a selected drug under this part with respect to 
        the number of negotiation-eligible drugs published on the list 
        under subsection (a) with respect to such initial price 
        applicability year.

    ``(d) <<NOTE: Determinations. Time periods.>>  Negotiation-Eligible 
Drug.--
            ``(1) <<NOTE: Definition.>>  In general.--For purposes of 
        this part, subject to paragraph (2), the term `negotiation-
        eligible drug' means, with respect to the selected drug 
        publication date with respect to an initial price applicability 
        year, a qualifying single source drug, as defined in subsection 
        (e), that is described in either of the following subparagraphs 
        (or, with respect to the initial price applicability year 2026 
        or 2027, that is described in subparagraph (A)):
                    ``(A) Part d high spend drugs.--The qualifying 
                single source drug is, determined in accordance with 
                subsection (e)(2), among the 50 qualifying single source 
                drugs with the highest total expenditures under part D 
                of title XVIII, as determined by the Secretary in 
                accordance with paragraph (3), during the most recent 
                12-month period for which data are available prior to 
                such selected drug publication date (but ending no later 
                than October 31 of the year prior to the year of such 
                drug publication date).

[[Page 136 STAT. 1838]]

                    ``(B) Part b high spend drugs.--The qualifying 
                single source drug is, determined in accordance with 
                subsection (e)(2), among the 50 qualifying single source 
                drugs with the highest total expenditures under part B 
                of title XVIII, as determined by the Secretary in 
                accordance with paragraph (3), during such most recent 
                12-month period, as described in subparagraph (A).
            ``(2) Exception for small biotech drugs.--
                    ``(A) In general.--Subject to subparagraph (C), the 
                term `negotiation-eligible drug' shall not include, with 
                respect to the initial price applicability years 2026, 
                2027, and 2028, a qualifying single source drug that 
                meets either of the following:
                          ``(i) Part d drugs.--The total expenditures 
                      for the qualifying single source drug under part D 
                      of title XVIII, as determined by the Secretary in 
                      accordance with paragraph (3)(B), during 2021--
                                    ``(I) are equal to or less than 1 
                                percent of the total expenditures under 
                                such part D, as so determined, for all 
                                covered part D drugs (as defined in 
                                section 1860D-2(e)) during such year; 
                                and
                                    ``(II) are equal to at least 80 
                                percent of the total expenditures under 
                                such part D, as so determined, for all 
                                covered part D drugs for which the 
                                manufacturer of the drug has an 
                                agreement in effect under section 1860D-
                                14A during such year.
                          ``(ii) Part b drugs.--The total expenditures 
                      for the qualifying single source drug under part B 
                      of title XVIII, as determined by the Secretary in 
                      accordance with paragraph (3)(B), during 2021--
                                    ``(I) are equal to or less than 1 
                                percent of the total expenditures under 
                                such part B, as so determined, for all 
                                qualifying single source drugs for which 
                                payment may be made under such part B 
                                during such year; and
                                    ``(II) are equal to at least 80 
                                percent of the total expenditures under 
                                such part B, as so determined, for all 
                                qualifying single source drugs of the 
                                manufacturer for which payment may be 
                                made under such part B during such year.
                    ``(B) Clarifications relating to manufacturers.--
                          ``(i) Aggregation rule.--All persons treated 
                      as a single employer under subsection (a) or (b) 
                      of section 52 of the Internal Revenue Code of 1986 
                      shall be treated as one manufacturer for purposes 
                      of this paragraph.
                          ``(ii) <<NOTE: Effective dates.>>  
                      Limitation.--A drug shall not be considered to be 
                      a qualifying single source drug described in 
                      clause (i) or (ii) of subparagraph (A) if the 
                      manufacturer of such drug is acquired after 2021 
                      by another manufacturer that does not meet the 
                      definition of a specified manufacturer under 
                      section 1860D-14C(g)(4)(B)(ii), effective at the 
                      beginning of the plan year immediately following 
                      such acquisition or, in the case of an acquisition 
                      before 2025, effective January 1, 2025.

[[Page 136 STAT. 1839]]

                    ``(C) Drugs not included as small biotech drugs.--A 
                new formulation, such as an extended release 
                formulation, of a qualifying single source drug shall 
                not be considered a qualifying single source drug 
                described in subparagraph (A).
            ``(3) Clarifications and determinations.--
                    ``(A) Previously selected drugs and small biotech 
                drugs excluded.--In applying subparagraphs (A) and (B) 
                of paragraph (1), the Secretary shall not consider or 
                count--
                          ``(i) drugs that are already selected drugs; 
                      and
                          ``(ii) for initial price applicability years 
                      2026, 2027, and 2028, qualifying single source 
                      drugs described in paragraph (2)(A).
                    ``(B) Use of data.--In determining whether a 
                qualifying single source drug satisfies any of the 
                criteria described in paragraph (1) or (2), the 
                Secretary shall use data that is aggregated across 
                dosage forms and strengths of the drug, including new 
                formulations of the drug, such as an extended release 
                formulation, and not based on the specific formulation 
                or package size or package type of the drug.

    ``(e) Qualifying Single Source Drug.--
            ``(1) <<NOTE: Definition.>>  In general.--For purposes of 
        this part, the term `qualifying single source drug' means, with 
        respect to an initial price applicability year, subject to 
        paragraphs (2) and (3), a covered part D drug (as defined in 
        section 1860D-2(e)) that is described in any of the following or 
        a drug or biological product for which payment may be made under 
        part B of title XVIII that is described in any of the following:
                    ``(A) <<NOTE: Time periods.>>  Drug products.--A 
                drug--
                          ``(i) that is approved under section 505(c) of 
                      the Federal Food, Drug, and Cosmetic Act and is 
                      marketed pursuant to such approval;
                          ``(ii) for which, as of the selected drug 
                      publication date with respect to such initial 
                      price applicability year, at least 7 years will 
                      have elapsed since the date of such approval; and
                          ``(iii) that is not the listed drug for any 
                      drug that is approved and marketed under section 
                      505(j) of such Act.
                    ``(B) Biological products.--A biological product--
                          ``(i) that is licensed under section 351(a) of 
                      the Public Health Service Act and is marketed 
                      under section 351 of such Act;
                          ``(ii) for which, as of the selected drug 
                      publication date with respect to such initial 
                      price applicability year, at least 11 years will 
                      have elapsed since the date of such licensure; and
                          ``(iii) that is not the reference product for 
                      any biological product that is licensed and 
                      marketed under section 351(k) of such Act.
            ``(2) Treatment of authorized generic drugs.--
                    ``(A) In general.--In the case of a qualifying 
                single source drug described in subparagraph (A) or (B) 
                of paragraph (1) that is the listed drug (as such term 
                is used in section 505(j) of the Federal Food, Drug, and 
                Cosmetic Act) or a product described in clause (ii) of 
                subparagraph

[[Page 136 STAT. 1840]]

                (B), with respect to an authorized generic drug, in 
                applying the provisions of this part, such authorized 
                generic drug and such listed drug or such product shall 
                be treated as the same qualifying single source drug.
                    ``(B) Authorized generic drug defined.--For purposes 
                of this paragraph, the term `authorized generic drug' 
                means--
                          ``(i) in the case of a drug, an authorized 
                      generic drug (as such term is defined in section 
                      505(t)(3) of the Federal Food, Drug, and Cosmetic 
                      Act); and
                          ``(ii) in the case of a biological product, a 
                      product that--
                                    ``(I) has been licensed under 
                                section 351(a) of such Act; and
                                    ``(II) is marketed, sold, or 
                                distributed directly or indirectly to 
                                retail class of trade under a different 
                                labeling, packaging (other than 
                                repackaging as the reference product in 
                                blister packs, unit doses, or similar 
                                packaging for use in institutions), 
                                product code, labeler code, trade name, 
                                or trade mark than the reference 
                                product.
            ``(3) Exclusions.--In this part, the term `qualifying single 
        source drug' does not include any of the following:
                    ``(A) Certain orphan drugs.--A drug that is 
                designated as a drug for only one rare disease or 
                condition under section 526 of the Federal Food, Drug, 
                and Cosmetic Act and for which the only approved 
                indication (or indications) is for such disease or 
                condition.
                    ``(B) <<NOTE: Time periods. Determination.>>  Low 
                spend medicare drugs.--A drug or biological product with 
                respect to which the total expenditures under parts B 
                and D of title XVIII, as determined by the Secretary in 
                accordance with subsection (d)(3)(B)--
                          ``(i) with respect to initial price 
                      applicability year 2026, is less than, during the 
                      period beginning on June 1, 2022, and ending on 
                      May 31, 2023, $200,000,000;
                          ``(ii) with respect to initial price 
                      applicability year 2027, is less than, during the 
                      most recent 12-month period applicable under 
                      subparagraphs (A) and (B) of subsection (d)(1) for 
                      such year, the dollar amount specified in clause 
                      (i) increased by the annual percentage increase in 
                      the consumer price index for all urban consumers 
                      (all items; United States city average) for the 
                      period beginning on June 1, 2023, and ending on 
                      September 30, 2024; or
                          ``(iii) with respect to a subsequent initial 
                      price applicability year, is less than, during the 
                      most recent 12-month period applicable under 
                      subparagraphs (A) and (B) of subsection (d)(1) for 
                      such year, the dollar amount specified in this 
                      subparagraph for the previous initial price 
                      applicability year increased by the annual 
                      percentage increase in such consumer price index 
                      for the 12-month period ending on September 30 of 
                      the year prior to the year of the selected drug 
                      publication date with respect to such subsequent 
                      initial price applicability year.

[[Page 136 STAT. 1841]]

                    ``(C) Plasma-derived products.--A biological product 
                that is derived from human whole blood or plasma.
``SEC. 1193. <<NOTE: 42 USC 1320f-2.>>  MANUFACTURER AGREEMENTS.

    ``(a) <<NOTE: Deadline.>>  In General.--For purposes of section 
1191(a)(2), the Secretary shall enter into agreements with manufacturers 
of selected drugs with respect to a price applicability period, by not 
later than February 28 following the selected drug publication date with 
respect to such selected drug, under which--
            ``(1) <<NOTE: Determination. Deadline.>>  during the 
        negotiation period for the initial price applicability year for 
        the selected drug, the Secretary and the manufacturer, in 
        accordance with section 1194, negotiate to determine (and, by 
        not later than the last date of such period, agree to) a maximum 
        fair price for such selected drug of the manufacturer in order 
        for the manufacturer to provide access to such price--
                    ``(A) to maximum fair price eligible individuals who 
                with respect to such drug are described in subparagraph 
                (A) of section 1191(c)(2) and are dispensed such drug 
                (and to pharmacies, mail order services, and other 
                dispensers, with respect to such maximum fair price 
                eligible individuals who are dispensed such drugs) 
                during, subject to paragraph (2), the price 
                applicability period; and
                    ``(B) to hospitals, physicians, and other providers 
                of services and suppliers with respect to maximum fair 
                price eligible individuals who with respect to such drug 
                are described in subparagraph (B) of such section and 
                are furnished or administered such drug during, subject 
                to paragraph (2), the price applicability period;
            ``(2) <<NOTE: Deadline.>>  the Secretary and the 
        manufacturer shall, in accordance with section 1194, renegotiate 
        (and, by not later than the last date of the period of 
        renegotiation, agree to) the maximum fair price for such drug, 
        in order for the manufacturer to provide access to such maximum 
        fair price (as so renegotiated)--
                    ``(A) to maximum fair price eligible individuals who 
                with respect to such drug are described in subparagraph 
                (A) of section 1191(c)(2) and are dispensed such drug 
                (and to pharmacies, mail order services, and other 
                dispensers, with respect to such maximum fair price 
                eligible individuals who are dispensed such drugs) 
                during any year during the price applicability period 
                (beginning after such renegotiation) with respect to 
                such selected drug; and
                    ``(B) to hospitals, physicians, and other providers 
                of services and suppliers with respect to maximum fair 
                price eligible individuals who with respect to such drug 
                are described in subparagraph (B) of such section and 
                are furnished or administered such drug during any year 
                described in subparagraph (A);
            ``(3) subject to subsection (d), access to the maximum fair 
        price (including as renegotiated pursuant to paragraph (2)), 
        with respect to such a selected drug, shall be provided by the 
        manufacturer to--
                    ``(A) maximum fair price eligible individuals, who 
                with respect to such drug are described in subparagraph 
                (A) of section 1191(c)(2), at the pharmacy, mail order 
                service, or other dispenser at the point-of-sale of such 
                drug (and

[[Page 136 STAT. 1842]]

                shall be provided by the manufacturer to the pharmacy, 
                mail order service, or other dispenser, with respect to 
                such maximum fair price eligible individuals who are 
                dispensed such drugs), as described in paragraph (1)(A) 
                or (2)(A), as applicable; and
                    ``(B) hospitals, physicians, and other providers of 
                services and suppliers with respect to maximum fair 
                price eligible individuals who with respect to such drug 
                are described in subparagraph (B) of such section and 
                are furnished or administered such drug, as described in 
                paragraph (1)(B) or (2)(B), as applicable;
            ``(4) the manufacturer submits to the Secretary, in a form 
        and manner specified by the Secretary, for the negotiation 
        period for the price applicability period (and, if applicable, 
        before any period of renegotiation pursuant to section 1194(f)) 
        with respect to such drug--
                    ``(A) information on the non-Federal average 
                manufacturer price (as defined in section 8126(h)(5) of 
                title 38, United States Code) for the drug for the 
                applicable year or period; and
                    ``(B) <<NOTE: Requirement.>>  information that the 
                Secretary requires to carry out the negotiation (or 
                renegotiation process) under this part; and
            ``(5) <<NOTE: Compliance. Requirements. Determination.>>  
        the manufacturer complies with requirements determined by the 
        Secretary to be necessary for purposes of administering the 
        program and monitoring compliance with the program.

    ``(b) Agreement in Effect Until Drug Is No Longer a Selected Drug.--
An agreement entered into under this section shall be effective, with 
respect to a selected drug, until such drug is no longer considered a 
selected drug under section 1192(c).
    ``(c) <<NOTE: Determination.>>  Confidentiality of Information.--
Information submitted to the Secretary under this part by a manufacturer 
of a selected drug that is proprietary information of such manufacturer 
(as determined by the Secretary) shall be used only by the Secretary or 
disclosed to and used by the Comptroller General of the United States 
for purposes of carrying out this part.

    ``(d) Nonduplication With 340B Ceiling Price.--Under an agreement 
entered into under this section, the manufacturer of a selected drug--
            ``(1) shall not be required to provide access to the maximum 
        fair price under subsection (a)(3), with respect to such 
        selected drug and maximum fair price eligible individuals who 
        are eligible to be furnished, administered, or dispensed such 
        selected drug at a covered entity described in section 
        340B(a)(4) of the Public Health Service Act, to such covered 
        entity if such selected drug is subject to an agreement 
        described in section 340B(a)(1) of such Act and the ceiling 
        price (defined in section 340B(a)(1) of such Act) is lower than 
        the maximum fair price for such selected drug; and
            ``(2) <<NOTE: Requirement.>>  shall be required to provide 
        access to the maximum fair price to such covered entity with 
        respect to maximum fair price eligible individuals who are 
        eligible to be furnished, administered, or dispensed such 
        selected drug at such entity at such ceiling price in a 
        nonduplicated amount to the ceiling price if such maximum fair 
        price is below the ceiling price for such selected drug.

[[Page 136 STAT. 1843]]

``SEC. 1194. <<NOTE: 42 USC 1320f-3.>>  NEGOTIATION AND 
                          RENEGOTIATION PROCESS.

    ``(a) In General.--For purposes of this part, under an agreement 
under section 1193 between the Secretary and a manufacturer of a 
selected drug (or selected drugs), with respect to the period for which 
such agreement is in effect and in accordance with subsections (b), (c), 
and (d), the Secretary and the manufacturer--
            ``(1) shall during the negotiation period with respect to 
        such drug, in accordance with this section, negotiate a maximum 
        fair price for such drug for the purpose described in section 
        1193(a)(1); and
            ``(2) renegotiate, in accordance with the process specified 
        pursuant to subsection (f), such maximum fair price for such 
        drug for the purpose described in section 1193(a)(2) if such 
        drug is a renegotiation-eligible drug under such subsection.

    ``(b) Negotiation Process Requirements.--
            ``(1) Methodology and process.--The Secretary shall develop 
        and use a consistent methodology and process, in accordance with 
        paragraph (2), for negotiations under subsection (a) that aims 
        to achieve the lowest maximum fair price for each selected drug.
            ``(2) <<NOTE: Applicability. Deadlines.>>  Specific elements 
        of negotiation process.--As part of the negotiation process 
        under this section, with respect to a selected drug and the 
        negotiation period with respect to the initial price 
        applicability year with respect to such drug, the following 
        shall apply:
                    ``(A) Submission of information.--Not later than 
                March 1 of the year of the selected drug publication 
                date, with respect to the selected drug, the 
                manufacturer of the drug shall submit to the Secretary, 
                in accordance with section 1193(a)(4), the information 
                described in such section.
                    ``(B) <<NOTE: Proposal.>>  Initial offer by 
                secretary.--Not later than the June 1 following the 
                selected drug publication date, the Secretary shall 
                provide the manufacturer of the selected drug with a 
                written initial offer that contains the Secretary's 
                proposal for the maximum fair price of the drug and a 
                concise justification based on the factors described in 
                section 1194(e) that were used in developing such offer.
                    ``(C) <<NOTE: Proposal.>>  Response to initial 
                offer.--
                          ``(i) In general.--Not later than 30 days 
                      after the date of receipt of an initial offer 
                      under subparagraph (B), the manufacturer shall 
                      either accept such offer or propose a counteroffer 
                      to such offer.
                          ``(ii) Counteroffer requirements.--If a 
                      manufacturer proposes a counteroffer, such 
                      counteroffer--
                                    ``(I) shall be in writing; and
                                    ``(II) shall be justified based on 
                                the factors described in subsection (e).
                    ``(D) Response to counteroffer.--After receiving a 
                counteroffer under subparagraph (C), the Secretary shall 
                respond in writing to such counteroffer.
                    ``(E) Deadline.--All negotiations between the 
                Secretary and the manufacturer of the selected drug 
                shall end prior to the first day of November following 
                the selected drug publication date, with respect to the 
                initial price applicability year.

[[Page 136 STAT. 1844]]

                    ``(F) Limitations on offer amount.--In negotiating 
                the maximum fair price of a selected drug, with respect 
                to the initial price applicability year for the selected 
                drug, and, as applicable, in renegotiating the maximum 
                fair price for such drug, with respect to a subsequent 
                year during the price applicability period for such 
                drug, the Secretary shall not offer (or agree to a 
                counteroffer for) a maximum fair price for the selected 
                drug that--
                          ``(i) exceeds the ceiling determined under 
                      subsection (c) for the selected drug and year; or
                          ``(ii) as applicable, is less than the floor 
                      determined under subsection (d) for the selected 
                      drug and year.

    ``(c) Ceiling for Maximum Fair Price.--
            ``(1) General ceiling.--
                    ``(A) In general.--The maximum fair price negotiated 
                under this section for a selected drug, with respect to 
                the first initial price applicability year of the price 
                applicability period with respect to such drug, shall 
                not exceed the lower of the amount under subparagraph 
                (B) or the amount under subparagraph (C).
                    ``(B) Subparagraph (B) amount.--An amount equal to 
                the following:
                          ``(i) Covered part d drug.--In the case of a 
                      covered part D drug (as defined in section 1860D-
                      2(e)), the sum of the plan specific enrollment 
                      weighted amounts for each prescription drug plan 
                      or MA-PD plan (as determined under paragraph (2)).
                          ``(ii) Part b drug or biological.--In the case 
                      of a drug or biological product for which payment 
                      may be made under part B of title XVIII, the 
                      payment amount under section 1847A(b)(4) for the 
                      drug or biological product for the year prior to 
                      the year of the selected drug publication date 
                      with respect to the initial price applicability 
                      year for the drug or biological product.
                    ``(C) Subparagraph (C) amount.--An amount equal to 
                the applicable percent described in paragraph (3), with 
                respect to such drug, of the following:
                          ``(i) Initial price applicability year 2026.--
                      In the case of a selected drug with respect to 
                      which such initial price applicability year is 
                      2026, the average non-Federal average manufacturer 
                      price for such drug for 2021 (or, in the case that 
                      there is not an average non-Federal average 
                      manufacturer price available for such drug for 
                      2021, for the first full year following the market 
                      entry for such drug), increased by the percentage 
                      increase in the consumer price index for all urban 
                      consumers (all items; United States city average) 
                      from September 2021 (or December of such first 
                      full year following the market entry), as 
                      applicable, to September of the year prior to the 
                      year of the selected drug publication date with 
                      respect to such initial price applicability year.
                          ``(ii) Initial price applicability year 2027 
                      and subsequent years.--In the case of a selected 
                      drug with respect to which such initial price 
                      applicability year is 2027 or a subsequent year, 
                      the lower of--

[[Page 136 STAT. 1845]]

                                    ``(I) the average non-Federal 
                                average manufacturer price for such drug 
                                for 2021 (or, in the case that there is 
                                not an average non-Federal average 
                                manufacturer price available for such 
                                drug for 2021, for the first full year 
                                following the market entry for such 
                                drug), increased by the percentage 
                                increase in the consumer price index for 
                                all urban consumers (all items; United 
                                States city average) from September 2021 
                                (or December of such first full year 
                                following the market entry), as 
                                applicable, to September of the year 
                                prior to the year of the selected drug 
                                publication date with respect to such 
                                initial price applicability year; or
                                    ``(II) the average non-Federal 
                                average manufacturer price for such drug 
                                for the year prior to the selected drug 
                                publication date with respect to such 
                                initial price applicability year.
            ``(2) Plan specific enrollment weighted amount.--For 
        purposes of paragraph (1)(B)(i), the plan specific enrollment 
        weighted amount for a prescription drug plan or an MA-PD plan 
        with respect to a covered Part D drug is an amount equal to the 
        product of--
                    ``(A) the negotiated price of the drug under such 
                plan under part D of title XVIII, net of all price 
                concessions received by such plan or pharmacy benefit 
                managers on behalf of such plan, for the most recent 
                year for which data is available; and
                    ``(B) a fraction--
                          ``(i) the numerator of which is the total 
                      number of individuals enrolled in such plan in 
                      such year; and
                          ``(ii) the denominator of which is the total 
                      number of individuals enrolled in a prescription 
                      drug plan or an MA-PD plan in such year.
            ``(3) Applicable percent described.--For purposes of this 
        subsection, the applicable percent described in this paragraph 
        is the following:
                    ``(A) Short-monopoly drugs and vaccines.--With 
                respect to a selected drug (other than an extended-
                monopoly drug and a long-monopoly drug), 75 percent.
                    ``(B) Extended-monopoly drugs.--With respect to an 
                extended-monopoly drug, 65 percent.
                    ``(C) Long-monopoly drugs.--With respect to a long-
                monopoly drug, 40 percent.
            ``(4) Extended-monopoly drug defined.--
                    ``(A) <<NOTE: Time period.>>  In general.--In this 
                part, subject to subparagraph (B), the term `extended-
                monopoly drug' means, with respect to an initial price 
                applicability year, a selected drug for which at least 
                12 years, but fewer than 16 years, have elapsed since 
                the date of approval of such drug under section 505(c) 
                of the Federal Food, Drug, and Cosmetic Act or since the 
                date of licensure of such drug under section 351(a) of 
                the Public Health Service Act, as applicable.
                    ``(B) Exclusions.--The term `extended-monopoly drug' 
                shall not include any of the following:

[[Page 136 STAT. 1846]]

                          ``(i) A vaccine that is licensed under section 
                      351 of the Public Health Service Act and marketed 
                      pursuant to such section.
                          ``(ii) A selected drug for which a 
                      manufacturer had an agreement under this part with 
                      the Secretary with respect to an initial price 
                      applicability year that is before 2030.
                    ``(C) Clarification.--Nothing in subparagraph 
                (B)(ii) shall limit the transition of a selected drug 
                described in paragraph (3)(A) to a long-monopoly drug if 
                the selected drug meets the definition of a long-
                monopoly drug.
            ``(5) Long-monopoly drug defined.--
                    ``(A) <<NOTE: Time period.>>  In general.--In this 
                part, subject to subparagraph (B), the term `long-
                monopoly drug' means, with respect to an initial price 
                applicability year, a selected drug for which at least 
                16 years have elapsed since the date of approval of such 
                drug under section 505(c) of the Federal Food, Drug, and 
                Cosmetic Act or since the date of licensure of such drug 
                under section 351(a) of the Public Health Service Act, 
                as applicable.
                    ``(B) Exclusion.--The term `long-monopoly drug' 
                shall not include a vaccine that is licensed under 
                section 351 of the Public Health Service Act and 
                marketed pursuant to such section.
            ``(6) <<NOTE: Time period.>>  Average non-federal average 
        manufacturer price.--In this part, the term `average non-Federal 
        average manufacturer price' means the average of the non-Federal 
        average manufacturer price (as defined in section 8126(h)(5) of 
        title 38, United States Code) for the 4 calendar quarters of the 
        year involved.

    ``(d) <<NOTE: Time periods.>>  Temporary Floor for Small Biotech 
Drugs.--In the case of a selected drug that is a qualifying single 
source drug described in section 1192(d)(2) and with respect to which 
the first initial price applicability year of the price applicability 
period with respect to such drug is 2029 or 2030, the maximum fair price 
negotiated under this section for such drug for such initial price 
applicability year may not be less than 66 percent of the average non-
Federal average manufacturer price for such drug (as defined in 
subsection (c)(6)) for 2021 (or, in the case that there is not an 
average non-Federal average manufacturer price available for such drug 
for 2021, for the first full year following the market entry for such 
drug), increased by the percentage increase in the consumer price index 
for all urban consumers (all items; United States city average) from 
September 2021 (or December of such first full year following the market 
entry), as applicable, to September of the year prior to the selected 
drug publication date with respect to the initial price applicability 
year.

    ``(e) Factors.--For purposes of negotiating the maximum fair price 
of a selected drug under this part with the manufacturer of the drug, 
the Secretary shall consider the following factors, as applicable to the 
drug, as the basis for determining the offers and counteroffers under 
subsection (b) for the drug:
            ``(1) Manufacturer-specific data.--The following data, with 
        respect to such selected drug, as submitted by the manufacturer:

[[Page 136 STAT. 1847]]

                    ``(A) Research and development costs of the 
                manufacturer for the drug and the extent to which the 
                manufacturer has recouped research and development 
                costs.
                    ``(B) Current unit costs of production and 
                distribution of the drug.
                    ``(C) Prior Federal financial support for novel 
                therapeutic discovery and development with respect to 
                the drug.
                    ``(D) Data on pending and approved patent 
                applications, exclusivities recognized by the Food and 
                Drug Administration, and applications and approvals 
                under section 505(c) of the Federal Food, Drug, and 
                Cosmetic Act or section 351(a) of the Public Health 
                Service Act for the drug.
                    ``(E) Market data and revenue and sales volume data 
                for the drug in the United States.
            ``(2) Evidence about alternative treatments.--The following 
        evidence, as available, with respect to such selected drug and 
        therapeutic alternatives to such drug:
                    ``(A) The extent to which such drug represents a 
                therapeutic advance as compared to existing therapeutic 
                alternatives and the costs of such existing therapeutic 
                alternatives.
                    ``(B) Prescribing information approved by the Food 
                and Drug Administration for such drug and therapeutic 
                alternatives to such drug.
                    ``(C) Comparative effectiveness of such drug and 
                therapeutic alternatives to such drug, taking into 
                consideration the effects of such drug and therapeutic 
                alternatives to such drug on specific populations, such 
                as individuals with disabilities, the elderly, the 
                terminally ill, children, and other patient populations.
                    ``(D) The extent to which such drug and therapeutic 
                alternatives to such drug address unmet medical needs 
                for a condition for which treatment or diagnosis is not 
                addressed adequately by available therapy.
        In using evidence described in subparagraph (C), the Secretary 
        shall not use evidence from comparative clinical effectiveness 
        research in a manner that treats extending the life of an 
        elderly, disabled, or terminally ill individual as of lower 
        value than extending the life of an individual who is younger, 
        nondisabled, or not terminally ill.

    ``(f) Renegotiation Process.--
            ``(1) <<NOTE: Effective date.>>  In general.--In the case of 
        a renegotiation-eligible drug (as defined in paragraph (2)) that 
        is selected under paragraph (3), the Secretary shall provide for 
        a process of renegotiation (for years (beginning with 2028) 
        during the price applicability period, with respect to such 
        drug) of the maximum fair price for such drug consistent with 
        paragraph (4).
            ``(2) Renegotiation-eligible drug defined.--In this section, 
        the term `renegotiation-eligible drug' means a selected drug 
        that is any of the following:
                    ``(A) Addition of new indication.--A selected drug 
                for which a new indication is added to the drug.
                    ``(B) Change of status to an extended-monopoly 
                drug.--A selected drug that--
                          ``(i) is not an extended-monopoly or a long-
                      monopoly drug; and

[[Page 136 STAT. 1848]]

                          ``(ii) for which there is a change in status 
                      to that of an extended-monopoly drug.
                    ``(C) Change of status to a long-monopoly drug.--A 
                selected drug that--
                          ``(i) is not a long-monopoly drug; and
                          ``(ii) for which there is a change in status 
                      to that of a long-monopoly drug.
                    ``(D) <<NOTE: Determination.>>  Material changes.--A 
                selected drug for which the Secretary determines there 
                has been a material change of any of the factors 
                described in paragraph (1) or (2) of subsection (e).
            ``(3) <<NOTE: Effective date.>>  Selection of drugs for 
        renegotiation.--For each year (beginning with 2028), the 
        Secretary shall select among renegotiation-eligible drugs for 
        renegotiation as follows:
                    ``(A) All extended-monopoly negotiation-eligible 
                drugs.--The Secretary shall select all renegotiation-
                eligible drugs described in paragraph (2)(B).
                    ``(B) All long-monopoly negotiation-eligible 
                drugs.--The Secretary shall select all renegotiation-
                eligible drugs described in paragraph (2)(C).
                    ``(C) Remaining drugs.--Among the remaining 
                renegotiation-eligible drugs described in subparagraphs 
                (A) and (D) of paragraph (2), the Secretary shall select 
                renegotiation-eligible drugs for which the Secretary 
                expects renegotiation is likely to result in a 
                significant change in the maximum fair price otherwise 
                negotiated.
            ``(4) Renegotiation process.--
                    ``(A) In general.--The Secretary shall specify the 
                process for renegotiation of maximum fair prices with 
                the manufacturer of a renegotiation-eligible drug 
                selected for renegotiation under this subsection.
                    ``(B) Consistent with negotiation process.--The 
                process specified under subparagraph (A) shall, to the 
                extent practicable, be consistent with the methodology 
                and process established under subsection (b) and in 
                accordance with subsections (c), (d), and (e), and for 
                purposes of applying subsections (c)(1)(A) and (d), the 
                reference to the first initial price applicability year 
                of the price applicability period with respect to such 
                drug shall be treated as the first initial price 
                applicability year of such period for which the maximum 
                fair price established pursuant to such renegotiation 
                applies, including for applying subsection (c)(3)(B) in 
                the case of renegotiation-eligible drugs described in 
                paragraph (3)(A) of this subsection and subsection 
                (c)(3)(C) in the case of renegotiation-eligible drugs 
                described in paragraph (3)(B) of this subsection.
            ``(5) Clarification.--A renegotiation-eligible drug for 
        which the Secretary makes a determination described in section 
        1192(c)(1) before or during the period of renegotiation shall 
        not be subject to the renegotiation process under this section.

    ``(g) <<NOTE: Effective date.>>  Clarification.--The maximum fair 
price for a selected drug described in subparagraph (A) or (B) of 
paragraph (1) shall take effect no later than the first day of the first 
calendar quarter that begins after the date described in subparagraph 
(A) or (B), as applicable.

[[Page 136 STAT. 1849]]

``SEC. 1195. <<NOTE: Deadlines. Time periods. 42 USC 1320f-4.>>  
                          PUBLICATION OF MAXIMUM FAIR PRICES.

    ``(a) In General.--With respect to an initial price applicability 
year and a selected drug with respect to such year--
            ``(1) not later than November 30 of the year that is 2 years 
        prior to such initial price applicability year, the Secretary 
        shall publish the maximum fair price for such drug negotiated 
        with the manufacturer of such drug under this part; and
            ``(2) not later than March 1 of the year prior to such 
        initial price applicability year, the Secretary shall publish, 
        subject to section 1193(c), the explanation for the maximum fair 
        price with respect to the factors as applied under section 
        1194(e) for such drug described in paragraph (1).

    ``(b) Updates.--
            ``(1) Subsequent year maximum fair prices.--For a selected 
        drug, for each year subsequent to the first initial price 
        applicability year of the price applicability period with 
        respect to such drug, with respect to which an agreement for 
        such drug is in effect under section 1193, not later than 
        November 30 of the year that is 2 years prior to such subsequent 
        year, the Secretary shall publish the maximum fair price 
        applicable to such drug and year, which shall be--
                    ``(A) subject to subparagraph (B), the amount equal 
                to the maximum fair price published for such drug for 
                the previous year, increased by the annual percentage 
                increase in the consumer price index for all urban 
                consumers (all items; United States city average) for 
                the 12-month period ending with the July immediately 
                preceding such November 30; or
                    ``(B) in the case the maximum fair price for such 
                drug was renegotiated, for the first year for which such 
                price as so renegotiated applies, such renegotiated 
                maximum fair price.
            ``(2) <<NOTE: Determination.>>  Prices negotiated after 
        deadline.--In the case of a selected drug with respect to an 
        initial price applicability year for which the maximum fair 
        price is determined under this part after the date of 
        publication under this section, the Secretary shall publish such 
        maximum fair price by not later than 30 days after the date such 
        maximum price is so determined.
``SEC. 1196. <<NOTE: 42 USC 1320f-5.>>  ADMINISTRATIVE DUTIES AND 
                          COMPLIANCE MONITORING.

    ``(a) Administrative Duties.--For purposes of section 1191(a)(4), 
the administrative duties described in this section are the following:
            ``(1) The establishment of procedures to ensure that the 
        maximum fair price for a selected drug is applied before--
                    ``(A) any coverage or financial assistance under 
                other health benefit plans or programs that provide 
                coverage or financial assistance for the purchase or 
                provision of prescription drug coverage on behalf of 
                maximum fair price eligible individuals; and
                    ``(B) any other discounts.
            ``(2) The establishment of procedures to compute and apply 
        the maximum fair price across different strengths and dosage 
        forms of a selected drug and not based on the specific 
        formulation or package size or package type of such drug.

[[Page 136 STAT. 1850]]

            ``(3) The establishment of procedures to carry out the 
        provisions of this part, as applicable, with respect to--
                    ``(A) maximum fair price eligible individuals who 
                are enrolled in a prescription drug plan under part D of 
                title XVIII or an MA-PD plan under part C of such title; 
                and
                    ``(B) maximum fair price eligible individuals who 
                are enrolled under part B of such title, including who 
                are enrolled in an MA plan under part C of such title.
            ``(4) The establishment of a negotiation process and 
        renegotiation process in accordance with section 1194.
            ``(5) The establishment of a process for manufacturers to 
        submit information described in section 1194(b)(2)(A).
            ``(6) The sharing with the Secretary of the Treasury of such 
        information as is necessary to determine the tax imposed by 
        section 5000D of the Internal Revenue Code of 1986, including 
        the application of such tax to a manufacturer, producer, or 
        importer or the determination of any date described in section 
        5000D(c)(1) of such Code. For purposes of the preceding 
        sentence, such information shall include--
                    ``(A) the date on which the Secretary receives 
                notification of any termination of an agreement under 
                the Medicare coverage gap discount program under section 
                1860D-14A and the date on which any subsequent agreement 
                under such program is entered into;
                    ``(B) the date on which the Secretary receives 
                notification of any termination of an agreement under 
                the manufacturer discount program under section 1860D-
                14C and the date on which any subsequent agreement under 
                such program is entered into; and
                    ``(C) the date on which the Secretary receives 
                notification of any termination of a rebate agreement 
                described in section 1927(b) and the date on which any 
                subsequent rebate agreement described in such section is 
                entered into.
            ``(7) The establishment of procedures for purposes of 
        applying section 1192(d)(2)(B).

    ``(b) Compliance Monitoring.--The Secretary shall monitor compliance 
by a manufacturer with the terms of an agreement under section 1193 and 
establish a mechanism through which violations of such terms shall be 
reported.
``SEC. 1197. <<NOTE: 42 USC 1320f-6.>>  CIVIL MONETARY PENALTIES.

    ``(a) Violations Relating to Offering of Maximum Fair Price.--Any 
manufacturer of a selected drug that has entered into an agreement under 
section 1193, with respect to a year during the price applicability 
period with respect to such drug, that does not provide access to a 
price that is equal to or less than the maximum fair price for such drug 
for such year--
            ``(1) to a maximum fair price eligible individual who with 
        respect to such drug is described in subparagraph (A) of section 
        1191(c)(2) and who is dispensed such drug during such year (and 
        to pharmacies, mail order services, and other dispensers, with 
        respect to such maximum fair price eligible individuals who are 
        dispensed such drugs); or
            ``(2) to a hospital, physician, or other provider of 
        services or supplier with respect to maximum fair price eligible 
        individuals who with respect to such drug is described in 
        subparagraph (B) of such section and is furnished or 
        administered such drug

[[Page 136 STAT. 1851]]

        by such hospital, physician, or provider or supplier during such 
        year;

shall be subject to a civil monetary penalty equal to ten times the 
amount equal to the product of the number of units of such drug so 
furnished, dispensed, or administered during such year and the 
difference between the price for such drug made available for such year 
by such manufacturer with respect to such individual or hospital, 
physician, provider of services, or supplier and the maximum fair price 
for such drug for such year.
    ``(b) Violations of Certain Terms of Agreement.--Any manufacturer of 
a selected drug that has entered into an agreement under section 1193, 
with respect to a year during the price applicability period with 
respect to such drug, that is in violation of a requirement imposed 
pursuant to section 1193(a)(5), including the requirement to submit 
information pursuant to section 1193(a)(4), shall be subject to a civil 
monetary penalty equal to $1,000,000 for each day of such violation.
    ``(c) False Information.--Any manufacturer that knowingly provides 
false information pursuant to section 1196(a)(7) shall be subject to a 
civil monetary penalty equal to $100,000,000 for each item of such false 
information.
    ``(d) Application.--The provisions of section 1128A (other than 
subsections (a) and (b)) shall apply to a civil monetary penalty under 
this section in the same manner as such provisions apply to a penalty or 
proceeding under section 1128A(a).
``SEC. 1198. <<NOTE: 42 USC 1320f-7.>>  LIMITATION ON 
                          ADMINISTRATIVE AND JUDICIAL REVIEW.

    ``There shall be no administrative or judicial review of any of the 
following:
            ``(1) The determination of a unit, with respect to a drug or 
        biological product, pursuant to section 1191(c)(6).
            ``(2) The selection of drugs under section 1192(b), the 
        determination of negotiation-eligible drugs under section 
        1192(d), and the determination of qualifying single source drugs 
        under section 1192(e).
            ``(3) The determination of a maximum fair price under 
        subsection (b) or (f) of section 1194.
            ``(4) The determination of renegotiation-eligible drugs 
        under section 1194(f)(2) and the selection of renegotiation-
        eligible drugs under section 1194(f)(3).''.

    (b) Application of Maximum Fair Prices and Conforming Amendments.--
            (1) Under medicare.--
                    (A) Application to payments under part b.--Section 
                1847A(b)(1)(B) of the Social Security Act (42 U.S.C. 
                1395w-3a(b)(1)(B)) is amended by inserting ``or in the 
                case of such a drug or biological product that is a 
                selected drug (as referred to in section 1192(c)), with 
                respect to a price applicability period (as defined in 
                section 1191(b)(2)), 106 percent of the maximum fair 
                price (as defined in section 1191(c)(3)) applicable for 
                such drug and a year during such period'' after 
                ``paragraph (4)''.
                    (B) Application under ma of cost-sharing for part b 
                drugs based off of negotiated price.--Section 
                1852(a)(1)(B)(iv) of the Social Security Act (42 U.S.C. 
                1395w-22(a)(1)(B)(iv)) is amended--

[[Page 136 STAT. 1852]]

                          (i) by redesignating subclause (VII) as 
                      subclause (VIII); and
                          (ii) by inserting after subclause (VI) the 
                      following subclause:
                                    ``(VII) A drug or biological product 
                                that is a selected drug (as referred to 
                                in section 1192(c)).''.
                    (C) Exception to part D non-interference.--Section 
                1860D-11(i) of the Social Security Act (42 U.S.C. 1395w-
                111(i)) is amended--
                          (i) in paragraph (1), by striking ``and'' at 
                      the end;
                          (ii) in paragraph (2), by striking ``or 
                      institute a price structure for the reimbursement 
                      of covered part D drugs.'' and inserting ``, 
                      except as provided under section 1860D-4(b)(3)(l); 
                      and''; and
                          (iii) by adding at the end the following new 
                      paragraph:
            ``(3) may not institute a price structure for the 
        reimbursement of covered part D drugs, except as provided under 
        part E of title XI.''.
                    (D) Application as negotiated price under part d.--
                Section 1860D-2(d)(1) of the Social Security Act (42 
                U.S.C. 1395w-102(d)(1)) is amended--
                          (i) in subparagraph (B), by inserting ``, 
                      subject to subparagraph (D),'' after ``negotiated 
                      prices''; and
                          (ii) by adding at the end the following new 
                      subparagraph:
                    ``(D) Application of maximum fair price for selected 
                drugs.--In applying this section, in the case of a 
                covered part D drug that is a selected drug (as referred 
                to in section 1192(c)), with respect to a price 
                applicability period (as defined in section 1191(b)(2)), 
                the negotiated prices used for payment (as described in 
                this subsection) shall be no greater than the maximum 
                fair price (as defined in section 1191(c)(3)) for such 
                drug and for each year during such period plus any 
                dispensing fees for such drug.''.
                    (E) Coverage of selected drugs.--Section 1860D-
                4(b)(3) of the Social Security Act (42 U.S.C. 1395w-
                104(b)(3)) is amended by adding at the end the following 
                new subparagraph:
                    ``(I) Required inclusion of selected drugs.--
                          ``(i) <<NOTE: Time periods.>>  In general.--
                      For 2026 and each subsequent year, the PDP sponsor 
                      offering a prescription drug plan shall include 
                      each covered part D drug that is a selected drug 
                      under section 1192 for which a maximum fair price 
                      (as defined in section 1191(c)(3)) is in effect 
                      with respect to the year.
                          ``(ii) Clarification.--Nothing in clause (i) 
                      shall be construed as prohibiting a PDP sponsor 
                      from removing such a selected drug from a 
                      formulary if such removal would be permitted under 
                      section 423.120(b)(5)(iv) of title 42, Code of 
                      Federal Regulations (or any successor 
                      regulation).''.
                    (F) Information from prescription drug plans and ma-
                pd plans required.--
                          (i) Prescription drug plans.--Section 1860D-
                      12(b) of the Social Security Act (42 U.S.C. 1395w-

[[Page 136 STAT. 1853]]

                      112(b)) is amended by adding at the end the 
                      following new paragraph:
            ``(8) Provision of information related to maximum fair 
        prices. <<NOTE: Contracts. Requirement.>> --Each contract 
        entered into with a PDP sponsor under this part with respect to 
        a prescription drug plan offered by such sponsor shall require 
        the sponsor to provide information to the Secretary as requested 
        by the Secretary for purposes of carrying out section 1194.''.
                          (ii) MA-PD plans.--Section 1857(f)(3) of the 
                      Social Security Act (42 U.S.C. 1395w-27(f)(3)) is 
                      amended by adding at the end the following new 
                      subparagraph:
                    ``(E) Provision of information related to maximum 
                fair prices.--Section 1860D-12(b)(8).''.
                    (G) Conditions for coverage.--
                          (i) Medicare part d.--Section 1860D-43(c) of 
                      the Social Security Act (42 U.S.C. 1395w-153(c)) 
                      is amended--
                                    (I) by redesignating paragraphs (1) 
                                and (2) as subparagraphs (A) and (B), 
                                respectively;
                                    (II) by striking ``Agreements.--
                                Subsection'' and inserting the 
                                following: ``Agreements.--
            ``(1) In general.--Subject to paragraph (2), subsection''; 
        and
                                    (III) by adding at the end the 
                                following new paragraph:
            ``(2) Exception.--Paragraph (1)(A) shall not apply to a 
        covered part D drug of a manufacturer for any period described 
        in section 5000D(c)(1) of the Internal Revenue Code of 1986 with 
        respect to the manufacturer.''.
                          (ii) Medicaid and medicare part b.--Section 
                      1927(a)(3) of the Social Security Act (42 U.S.C. 
                      1396r-8(a)(3)) is amended by adding at the end the 
                      following new sentence: ``The preceding sentence 
                      shall not apply to a single source drug or 
                      innovator multiple source drug of a manufacturer 
                      for any period described in section 5000D(c)(1) of 
                      the Internal Revenue Code of 1986 with respect to 
                      the manufacturer.''.
                    (H) Disclosure of information under medicare part 
                d.--
                          (i) Contract requirements.--Section 1860D-
                      12(b)(3)(D)(i) of the Social Security Act (42 
                      U.S.C. 1395w-112(b)(3)(D)(i)) is amended by 
                      inserting ``, or carrying out part E of title XI'' 
                      after ``appropriate)''.
                          (ii) Subsidies.--Section 1860D-15(f)(2)(A)(i) 
                      of the Social Security Act (42 U.S.C. 1395w-
                      115(f)(2)(A)(i)) is amended by inserting ``or part 
                      E of title XI'' after ``this section''.
            (2) Drug price negotiation program prices included in best 
        price.--Section 1927(c)(1)(C) of the Social Security Act (42 
        U.S.C. 1396r-8(c)(1)(C)) is amended--
                    (A) in clause (i)(VI), by striking ``any prices 
                charged'' and inserting ``subject to clause (ii)(V), any 
                prices charged''; and
                    (B) in clause (ii)--
                          (i) in subclause (III), by striking ``; and'' 
                      at the end;

[[Page 136 STAT. 1854]]

                          (ii) in subclause (IV), by striking the period 
                      at the end and inserting ``; and''; and
                          (iii) by adding at the end the following new 
                      subclause:
                                    ``(V) in the case of a rebate period 
                                and a covered outpatient drug that is a 
                                selected drug (as referred to in section 
                                1192(c)) during such rebate period, 
                                shall be inclusive of the maximum fair 
                                price (as defined in section 1191(c)(3)) 
                                for such drug with respect to such 
                                period.''.
            (3) Maximum fair prices excluded from average manufacturer 
        price.--Section 1927(k)(1)(B)(i) of the Social Security Act (42 
        U.S.C. 1396r-8(k)(1)(B)(i)) is amended--
                    (A) in subclause (IV) by striking ``; and'' at the 
                end;
                    (B) in subclause (V) by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following new 
                subclause:
                                    ``(VI) any reduction in price paid 
                                during the rebate period to the 
                                manufacturer for a drug by reason of 
                                application of part E of title XI.''.

    (c) <<NOTE: 42 USC 1320f note.>>  Implementation for 2026 Through 
2028.--The Secretary of Health and Human Services shall implement this 
section, including the amendments made by this section, for 2026, 2027, 
and 2028 by program instruction or other forms of program guidance.
SEC. 11002. SPECIAL RULE TO DELAY SELECTION AND NEGOTIATION OF 
                            BIOLOGICS FOR BIOSIMILAR MARKET ENTRY.

    (a) In General.--Part E of title XI of the Social Security Act, as 
added by section 11001, is amended--
            (1) <<NOTE: 42 USC 1320f-1.>>  in section 1192--
                    (A) in subsection (a), in the flush matter following 
                paragraph (4), by inserting ``and subsection (b)(3)'' 
                after ``the previous sentence'';
                    (B) in subsection (b)--
                          (i) in paragraph (1), by adding at the end the 
                      following new subparagraph:
                    ``(C) In the case of a biological product for which 
                the inclusion of the biological product as a selected 
                drug on a list published under subsection (a) has been 
                delayed under subsection (f)(2), remove such biological 
                product from the rankings under subparagraph (A) before 
                making the selections under subparagraph (B).''; and
                          (ii) by adding at the end the following new 
                      paragraph:
            ``(3) Inclusion of delayed biological products.--Pursuant to 
        subparagraphs (B)(ii)(I) and (C)(i) of subsection (f)(2), the 
        Secretary shall select and include on the list published under 
        subsection (a) the biological products described in such 
        subparagraphs. Such biological products shall count towards the 
        required number of drugs to be selected under subsection 
        (a)(1).''; and
                    (C) by adding at the end the following new 
                subsection:

    ``(f) Special Rule To Delay Selection and Negotiation of Biologics 
for Biosimilar Market Entry.--
            ``(1) Application.--

[[Page 136 STAT. 1855]]

                    ``(A) <<NOTE: Determination. Time period.>>  In 
                general.--Subject to subparagraph (B), in the case of a 
                biological product that would (but for this subsection) 
                be an extended-monopoly drug (as defined in section 
                1194(c)(4)) included as a selected drug on the list 
                published under subsection (a) with respect to an 
                initial price applicability year, the rules described in 
                paragraph (2) shall apply if the Secretary determines 
                that there is a high likelihood (as described in 
                paragraph (3)) that a biosimilar biological product (for 
                which such biological product will be the reference 
                product) will be licensed and marketed under section 
                351(k) of the Public Health Service Act before the date 
                that is 2 years after the selected drug publication date 
                with respect to such initial price applicability year.
                    ``(B) Request required.--
                          ``(i) In general.--The Secretary shall not 
                      provide for a delay under--
                                    ``(I) paragraph (2)(A) unless a 
                                request is made for such a delay by a 
                                manufacturer of a biosimilar biological 
                                product prior to the selected drug 
                                publication date for the list published 
                                under subsection (a) with respect to the 
                                initial price applicability year for 
                                which the biological product may have 
                                been included as a selected drug on such 
                                list but for subparagraph (2)(A); or
                                    ``(II) <<NOTE: Time period.>>  
                                paragraph (2)(B)(iii) unless a request 
                                is made for such a delay by such a 
                                manufacturer prior to the selected drug 
                                publication date for the list published 
                                under subsection (a) with respect to the 
                                initial price applicability year that is 
                                1 year after the initial price 
                                applicability year for which the 
                                biological product described in 
                                subsection (a) would have been included 
                                as a selected drug on such list but for 
                                paragraph (2)(A).
                          ``(ii) Information and documents.--
                                    ``(I) In general.--A request made 
                                under clause (i) shall be submitted to 
                                the Secretary by such manufacturer at a 
                                time and in a form and manner specified 
                                by the Secretary, and contain--
                                            ``(aa) information and 
                                        documents necessary for the 
                                        Secretary to make determinations 
                                        under this subsection, as 
                                        specified by the Secretary and 
                                        including, to the extent 
                                        available, items described in 
                                        subclause (III); and
                                            ``(bb) all agreements 
                                        related to the biosimilar 
                                        biological product filed with 
                                        the Federal Trade Commission or 
                                        the Assistant Attorney General 
                                        pursuant to subsections (a) and 
                                        (c) of section 1112 of the 
                                        Medicare Prescription Drug, 
                                        Improvement, and Modernization 
                                        Act of 2003.
                                    ``(II) Additional information and 
                                documents.--After the Secretary has 
                                reviewed the request and materials 
                                submitted under subclause (I), the 
                                manufacturer shall submit any additional

[[Page 136 STAT. 1856]]

                                information and documents requested by 
                                the Secretary necessary to make 
                                determinations under this subsection.
                                    ``(III) Items described.--The items 
                                described in this clause are the 
                                following:
                                            ``(aa) The manufacturing 
                                        schedule for such biosimilar 
                                        biological product submitted to 
                                        the Food and Drug Administration 
                                        during its review of the 
                                        application under such section 
                                        351(k).
                                            ``(bb) <<NOTE: Time 
                                        period.>>  Disclosures (in 
                                        filings by the manufacturer of 
                                        such biosimilar biological 
                                        product with the Securities and 
                                        Exchange Commission required 
                                        under section 12(b), 12(g), 
                                        13(a), or 15(d) of the 
                                        Securities Exchange Act of 1934 
                                        about capital investment, 
                                        revenue expectations, and 
                                        actions taken by the 
                                        manufacturer that are typical of 
                                        the normal course of business in 
                                        the year (or the 2 years, as 
                                        applicable) before marketing of 
                                        a biosimilar biological product) 
                                        that pertain to the marketing of 
                                        such biosimilar biological 
                                        product, or comparable 
                                        documentation that is 
                                        distributed to the shareholders 
                                        of privately held companies.
                    ``(C) Aggregation rule.--
                          ``(i) In general.--All persons treated as a 
                      single employer under subsection (a) or (b) of 
                      section 52 of the Internal Revenue Code of 1986, 
                      or in a partnership, shall be treated as one 
                      manufacturer for purposes of paragraph (2)(D)(iv).
                          ``(ii) Partnership defined.--In clause (i), 
                      the term `partnership' means a syndicate, group, 
                      pool, joint venture, or other organization through 
                      or by means of which any business, financial 
                      operation, or venture is carried on by the 
                      manufacturer of the biological product and the 
                      manufacturer of the biosimilar biological product.
            ``(2) <<NOTE: Time periods. Determination.>>  Rules 
        described.--The rules described in this paragraph are the 
        following:
                    ``(A) Delayed selection and negotiation for 1 
                year.--If a determination of high likelihood is made 
                under paragraph (3), the Secretary shall delay the 
                inclusion of the biological product as a selected drug 
                on the list published under subsection (a) until such 
                list is published with respect to the initial price 
                applicability year that is 1 year after the initial 
                price applicability year for which the biological 
                product would have been included as a selected drug on 
                such list.
                    ``(B) If not licensed and marketed during the 
                initial delay.--
                          ``(i) In general.--If, during the time period 
                      between the selected drug publication date on 
                      which the biological product would have been 
                      included on the list as a selected drug pursuant 
                      to subsection (a) but for subparagraph (A) and the 
                      selected drug publication date with respect to the 
                      initial price applicability year that is 1 year 
                      after the initial price applicability

[[Page 136 STAT. 1857]]

                      year for which such biological product would have 
                      been included as a selected drug on such list, the 
                      Secretary determines that the biosimilar 
                      biological product for which the manufacturer 
                      submitted the request under paragraph 
                      (1)(B)(i)(II) (and for which the Secretary 
                      previously made a high likelihood determination 
                      under paragraph (3)) has not been licensed and 
                      marketed under section 351(k) of the Public Health 
                      Service Act, the Secretary shall, at the request 
                      of such manufacturer--
                                    ``(I) reevaluate whether there is a 
                                high likelihood (as described in 
                                paragraph (3)) that such biosimilar 
                                biological product will be licensed and 
                                marketed under such section 351(k) 
                                before the date that is 2 years after 
                                the selected drug publication date for 
                                which such biological product would have 
                                been included as a selected drug on such 
                                list published but for subparagraph (A); 
                                and
                                    ``(II) <<NOTE: Evaluation.>>  
                                evaluate whether, on the basis of clear 
                                and convincing evidence, the 
                                manufacturer of such biosimilar 
                                biological product has made a 
                                significant amount of progress (as 
                                determined by the Secretary) towards 
                                both such licensure and the marketing of 
                                such biosimilar biological product 
                                (based on information from items 
                                described in subclauses (I)(bb) and (II) 
                                of paragraph (1)(B)(ii)) since the 
                                receipt by the Secretary of the request 
                                made by such manufacturer under 
                                paragraph (1)(B)(i)(I).
                          ``(ii) Selection and negotiation.--If the 
                      Secretary determines that there is not a high 
                      likelihood that such biosimilar biological product 
                      will be licensed and marketed as described in 
                      clause (i)(I) or there has not been a significant 
                      amount of progress as described in clause 
                      (i)(II)--
                                    ``(I) the Secretary shall include 
                                the biological product as a selected 
                                drug on the list published under 
                                subsection (a) with respect to the 
                                initial price applicability year that is 
                                1 year after the initial price 
                                applicability year for which such 
                                biological product would have been 
                                included as a selected drug on such list 
                                but for subparagraph (A); and
                                    ``(II) the manufacturer of such 
                                biological product shall pay a rebate 
                                under paragraph (4) with respect to the 
                                year for which such manufacturer would 
                                have provided access to a maximum fair 
                                price for such biological product but 
                                for subparagraph (A).
                          ``(iii) Second 1-year delay.--If the Secretary 
                      determines that there is a high likelihood that 
                      such biosimilar biological product will be 
                      licensed and marketed (as described in clause 
                      (i)(I)) and a significant amount of progress has 
                      been made by the manufacturer of such biosimilar 
                      biological product towards such licensure and 
                      marketing (as described in clause (i)(II)), the 
                      Secretary shall delay the inclusion of the 
                      biological product as a selected drug on the list 
                      published under

[[Page 136 STAT. 1858]]

                      subsection (a) until the selected drug publication 
                      date of such list with respect to the initial 
                      price applicability year that is 2 years after the 
                      initial price applicability year for which such 
                      biological product would have been included as a 
                      selected drug on such list but for this 
                      subsection.
                    ``(C) If not licensed and marketed during the year 
                two delay.--If, during the time period between the 
                selected drug publication date of the list for which the 
                biological product would have been included as a 
                selected drug but for subparagraph (B)(iii) and the 
                selected drug publication date with respect to the 
                initial price applicability year that is 2 years after 
                the initial price applicability year for which such 
                biological product would have been included as a 
                selected drug on such list but for this subsection, the 
                Secretary determines that such biosimilar biological 
                product has not been licensed and marketed--
                          ``(i) the Secretary shall include such 
                      biological product as a selected drug on such list 
                      with respect to the initial price applicability 
                      year that is 2 years after the initial price 
                      applicability year for which such biological 
                      product would have been included as a selected 
                      drug on such list; and
                          ``(ii) the manufacturer of such biological 
                      product shall pay a rebate under paragraph (4) 
                      with respect to the years for which such 
                      manufacturer would have provided access to a 
                      maximum fair price for such biological product but 
                      for this subsection.
                    ``(D) Limitations on delays.--
                          ``(i) Limited to 2 years.--In no case shall 
                      the Secretary delay the inclusion of a biological 
                      product on the list published under subsection (a) 
                      for more than 2 years.
                          ``(ii) Exclusion of biological products that 
                      transitioned to a long-monopoly drug during the 
                      delay.--In the case of a biological product for 
                      which the inclusion on the list published pursuant 
                      to subsection (a) was delayed by 1 year under 
                      subparagraph (A) and for which there would have 
                      been a change in status to a long-monopoly drug 
                      (as defined in section 1194(c)(5)) if such 
                      biological product had been a selected drug, in no 
                      case may the Secretary provide for a second 1-year 
                      delay under subparagraph (B)(iii).
                          ``(iii) Exclusion of biological products if 
                      more than 1 year since licensure.--In no case 
                      shall the Secretary delay the inclusion of a 
                      biological product on the list published under 
                      subsection (a) if more than 1 year has elapsed 
                      since the biosimilar biological product has been 
                      licensed under section 351(k) of the Public Health 
                      Service Act and marketing has not commenced for 
                      such biosimilar biological product.
                          ``(iv) Certain manufacturers of biosimilar 
                      biological products excluded.--In no case shall 
                      the Secretary delay the inclusion of a biological 
                      product

[[Page 136 STAT. 1859]]

                      as a selected drug on the list published under 
                      subsection (a) if Secretary determined that the 
                      manufacturer of the biosimilar biological product 
                      described in paragraph (1)(A)--
                                    ``(I) is the same as the 
                                manufacturer of the reference product 
                                described in such paragraph or is 
                                treated as being the same pursuant to 
                                paragraph (1)(C); or
                                    ``(II) has, based on information 
                                from items described in paragraph 
                                (1)(B)(ii)(I)(bb), entered into any 
                                agreement described in such paragraph 
                                with the manufacturer of the reference 
                                product described in paragraph (1)(A) 
                                that--
                                            ``(aa) requires or 
                                        incentivizes the manufacturer of 
                                        the biosimilar biological 
                                        product to submit a request 
                                        described in paragraph (1)(B); 
                                        or
                                            ``(bb) restricts the 
                                        quantity (either directly or 
                                        indirectly) of the biosimilar 
                                        biological product that may be 
                                        sold in the United States over a 
                                        specified period of time.
            ``(3) High likelihood.--For purposes of this subsection, 
        there is a high likelihood described in paragraph (1) or 
        paragraph (2), as applicable, if the Secretary finds that--
                    ``(A) an application for licensure under section 
                351(k) of the Public Health Service Act for the 
                biosimilar biological product has been accepted for 
                review or approved by the Food and Drug Administration; 
                and
                    ``(B) information from items described in sub 
                clauses (I)(bb) and (III) of paragraph (1)(B)(ii) 
                submitted to the Secretary by the manufacturer 
                requesting a delay under such paragraph provides clear 
                and convincing evidence that such biosimilar biological 
                product will, within the time period specified under 
                paragraph (1)(A) or (2)(B)(i)(I), be marketed.
            ``(4) Rebate.--
                    ``(A) In general.--For purposes of subparagraphs 
                (B)(ii)(II) and (C)(ii) of paragraph (2), in the case of 
                a biological product for which the inclusion on the list 
                under subsection (a) was delayed under this subsection 
                and for which the Secretary has negotiated and entered 
                into an agreement under section 1193 with respect to 
                such biological product, the manufacturer shall be 
                required to pay a rebate to the Secretary at such time 
                and in such manner as determined by the Secretary.
                    ``(B) <<NOTE: Estimate.>>  Amount.--Subject to 
                subparagraph (C), the amount of the rebate under 
                subparagraph (A) with respect to a biological product 
                shall be equal to the estimated amount--
                          ``(i) in the case of a biological product that 
                      is a covered part D drug (as defined in section 
                      1860D-2(e)), that is the sum of the products of--
                                    ``(I) 75 percent of the amount by 
                                which--
                                            ``(aa) the average 
                                        manufacturer price, as reported 
                                        by the manufacturer of such 
                                        covered part D drug under 
                                        section 1927 (or, if not 
                                        reported by such manufacturer 
                                        under section

[[Page 136 STAT. 1860]]

                                        1927, as reported by such 
                                        manufacturer to the Secretary 
                                        pursuant to the agreement under 
                                        section 1193(a)) for such 
                                        biological product, with respect 
                                        to each of the calendar quarters 
                                        of the price applicability 
                                        period that would have applied 
                                        but for this subsection; exceeds
                                            ``(bb) in the initial price 
                                        applicability year that would 
                                        have applied but for a delay 
                                        under--
                                                ``(AA) paragraph (2)(A), 
                                            the maximum fair price 
                                            negotiated under section 
                                            1194 for such biological 
                                            product under such 
                                            agreement; or
                                                ``(BB) paragraph 
                                            (2)(B)(iii), such maximum 
                                            fair price, increased as 
                                            described in section 
                                            1195(b)(1)(A); and
                                    ``(II) the number of units dispensed 
                                under part D of title XVIII for such 
                                covered part D drug during each such 
                                calendar quarter of such price 
                                applicability period; and
                          ``(ii) in the case of a biological product for 
                      which payment may be made under part B of title 
                      XVIII, that is the sum of the products of--
                                    ``(I) 80 percent of the amount by 
                                which--
                                            ``(aa) the payment amount 
                                        for such biological product 
                                        under section 1847A(b), with 
                                        respect to each of the calendar 
                                        quarters of the price 
                                        applicability period that would 
                                        have applied but for this 
                                        subsection; exceeds
                                            ``(bb) in the initial price 
                                        applicability year that would 
                                        have applied but for a delay 
                                        under--
                                                ``(AA) paragraph (2)(A), 
                                            the maximum fair price 
                                            negotiated under section 
                                            1194 for such biological 
                                            product under such 
                                            agreement; or
                                                ``(BB) paragraph 
                                            (2)(B)(iii), such maximum 
                                            fair price, increased as 
                                            described in section 
                                            1195(b)(1)(A); and
                                    ``(II) the number of units 
                                (excluding units that are packaged into 
                                the payment amount for an item or 
                                service and are not separately payable 
                                under such part B) of the billing and 
                                payment code of such biological product 
                                administered or furnished under such 
                                part B during each such calendar quarter 
                                of such price applicability period.
                    ``(C) Special rule for delayed biological products 
                that are long-monopoly drugs.--
                          ``(i) <<NOTE: Determination.>>  In general.--
                      In the case of a biological product with respect 
                      to which a rebate is required to be paid under 
                      this paragraph, if such biological product 
                      qualifies as a long-monopoly drug (as defined in 
                      section 1194(c)(5)) at the time of its inclusion 
                      on the list published under subsection (a), in 
                      determining the amount of the rebate for such 
                      biological product under subparagraph (B), the 
                      amount described in clause (ii) shall

[[Page 136 STAT. 1861]]

                      be substituted for the maximum fair price 
                      described in clause (i)(I) or (ii)(I) of such 
                      subparagraph (B), as applicable.
                          ``(ii) <<NOTE: Time periods.>>  Amount 
                      described.--The amount described in this clause is 
                      an amount equal to 65 percent of the average non-
                      Federal average manufacturer price for the 
                      biological product for 2021 (or, in the case that 
                      there is not an average non-Federal average 
                      manufacturer price available for such biological 
                      product for 2021, for the first full year 
                      following the market entry for such biological 
                      product), increased by the percentage increase in 
                      the consumer price index for all urban consumers 
                      (all items; United States city average) from 
                      September 2021 (or December of such first full 
                      year following the market entry), as applicable, 
                      to September of the year prior to the selected 
                      drug publication date with respect to the initial 
                      price applicability year that would have applied 
                      but for this subsection.
                    ``(D) Rebate deposits.--Amounts paid as rebates 
                under this paragraph shall be deposited into--
                          ``(i) in the case payment is made for such 
                      biological product under part B of title XVIII, 
                      the Federal Supplementary Medical Insurance Trust 
                      Fund established under section 1841; and
                          ``(ii) in the case such biological product is 
                      a covered part D drug (as defined in section 
                      1860D-2(e)), the Medicare Prescription Drug 
                      Account under section 1860D-16 in such Trust Fund.
            ``(5) Definitions of biosimilar biological product.--In this 
        subsection, the term `biosimilar biological product' has the 
        meaning given such term in section 1847A(c)(6).'';
            (2) in section 1193(a)(4) <<NOTE: 42 USC 1320f-2.>> --
                    (A) in the matter preceding subparagraph (A), by 
                inserting ``, and for section 1192(f),'' after ``section 
                1194(f))'';
                    (B) in subparagraph (A), by striking ``and'' at the 
                end;
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(C) information that the Secretary requires to 
                carry out section 1192(f), including rebates under 
                paragraph (4) of such section; and'';
            (3) in section 1196(a)(7) <<NOTE: 42 USC 1320f-5.>> , by 
        striking ``section 1192(d)(2)(B)'' and inserting ``subsections 
        (d)(2)(B) and (f)(1)(C) of section 1192'';
            (4) in section 1197 <<NOTE: 42 USC 1320f-6.>> --
                    (A) by redesignating subsections (b), (c), and (d) 
                as subsections (c), (d), and (e), respectively; and
                    (B) by inserting after subsection (a) the following 
                new subsection:

    ``(b) <<NOTE: Penalties.>>  Violations Relating to Providing 
Rebates.--Any manufacturer that fails to comply with the rebate 
requirements under section 1192(f)(4) shall be subject to a civil 
monetary penalty equal to 10 times the amount of the rebate the 
manufacturer failed to pay under such section.''; and
            (5) in section 1198(b)(2) <<NOTE: 42 USC 1320f-7.>> , by 
        inserting ``the application of section 1192(f),'' after 
        ``section 1192(e)''.

[[Page 136 STAT. 1862]]

    (b) Conforming Amendments for Disclosure of Certain Information.--
Section 1927(b)(3)(D)(i) of the Social Security Act (42 U.S.C. 1396r-
8(b)(3)(D)(i)) is amended by striking ``or to carry out section 1847B'' 
and inserting ``or to carry out section 1847B or section 1192(f), 
including rebates under paragraph (4) of such section''.
    (c) <<NOTE: 42 USC 1320f-1 note.>>  Implementation for 2026 Through 
2028.--The Secretary of Health and Human Services shall implement this 
section, including the amendments made by this section, for 2026, 2027, 
and 2028 by program instruction or other forms of program guidance.
SEC. 11003. EXCISE TAX IMPOSED ON DRUG MANUFACTURERS DURING 
                            NONCOMPLIANCE PERIODS.

    (a) In General.--Subtitle D of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new chapter:

``CHAPTER 50A <<NOTE: 26 USC 5000D prec.>> --DESIGNATED DRUGS

``Sec. 5000D. Designated drugs during noncompliance periods.

``SEC. 5000D <<NOTE: 26 USC 5000D.>> . DESIGNATED DRUGS DURING 
                            NONCOMPLIANCE PERIODS.

    ``(a) In General.--There is hereby imposed on the sale by the 
manufacturer, producer, or importer of any designated drug during a day 
described in subsection (b) a tax in an amount such that the applicable 
percentage is equal to the ratio of--
            ``(1) such tax, divided by
            ``(2) the sum of such tax and the price for which so sold.

    ``(b) Noncompliance Periods.--A day is described in this subsection 
with respect to a designated drug if it is a day during one of the 
following periods:
            ``(1) The period beginning on the March 1st (or, in the case 
        of initial price applicability year 2026, the October 2nd) 
        immediately following the date on which such drug is included on 
        the list published under section 1192(a) of the Social Security 
        Act and ending on the earlier of--
                    ``(A) the first date on which the manufacturer of 
                such designated drug has in place an agreement described 
                in section 1193(a) of such Act with respect to such 
                drug, or
                    ``(B) the date that the Secretary of Health and 
                Human Services has made a determination described in 
                section 1192(c)(1) of such Act with respect to such 
                designated drug.
            ``(2) The period beginning on the November 2nd immediately 
        following the March 1st described in paragraph (1) (or, in the 
        case of initial price applicability year 2026, the August 2nd 
        immediately following the October 2nd described in such 
        paragraph) and ending on the earlier of--
                    ``(A) the first date on which the manufacturer of 
                such designated drug and the Secretary of Health and 
                Human Services have agreed to a maximum fair price under 
                an agreement described in section 1193(a) of the Social 
                Security Act, or
                    ``(B) the date that the Secretary of Health and 
                Human Services has made a determination described in 
                section 1192(c)(1) of such Act with respect to such 
                designated drug.
            ``(3) In the case of any designated drug which is a selected 
        drug (as defined in section 1192(c) of the Social Security Act)

[[Page 136 STAT. 1863]]

        that the Secretary of Health and Human Services has selected for 
        renegotiation under section 1194(f) of such Act, the period 
        beginning on the November 2nd of the year that begins 2 years 
        prior to the first initial price applicability year of the price 
        applicability period for which the maximum fair price 
        established pursuant to such renegotiation applies and ending on 
        the earlier of--
                    ``(A) the first date on which the manufacturer of 
                such designated drug has agreed to a renegotiated 
                maximum fair price under such agreement, or
                    ``(B) the date that the Secretary of Health and 
                Human Services has made a determination described in 
                section 1192(c)(1) of such Act with respect to such 
                designated drug.
            ``(4) With respect to information that is required to be 
        submitted to the Secretary of Health and Human Services under an 
        agreement described in section 1193(a) of the Social Security 
        Act, the period beginning on the date on which such Secretary 
        certifies that such information is overdue and ending on the 
        date that such information is so submitted.

    ``(c) Suspension of Tax.-- <<NOTE: Contracts.>> 
            ``(1) In general.--A day shall not be taken into account as 
        a day during a period described in subsection (b) if such day is 
        also a day during the period--
                    ``(A) beginning on the first date on which--
                          ``(i) <<NOTE: Notice.>>  the notice of 
                      terminations of all applicable agreements of the 
                      manufacturer have been received by the Secretary 
                      of Health and Human Services, and
                          ``(ii) none of the drugs of the manufacturer 
                      of the designated drug are covered by an agreement 
                      under section 1860D-14A or 1860D-14C of the Social 
                      Security Act, and
                    ``(B) ending on the last day of February following 
                the earlier of--
                          ``(i) the first day after the date described 
                      in subparagraph (A) on which the manufacturer 
                      enters into any subsequent applicable agreement, 
                      or
                          ``(ii) the first date any drug of the 
                      manufacturer of the designated drug is covered by 
                      an agreement under section 1860D-14A or 1860D-14C 
                      of the Social Security Act.
            ``(2) <<NOTE: Definition.>>  Applicable agreement.--For 
        purposes of this subsection, the term `applicable agreement' 
        means the following:
                    ``(A) An agreement under--
                          ``(i) the Medicare coverage gap discount 
                      program under section 1860D-14A of the Social 
                      Security Act, or
                          ``(ii) the manufacturer discount program under 
                      section 1860D-14C of such Act.
                    ``(B) A rebate agreement described in section 
                1927(b) of such Act.

    ``(d) <<NOTE: Definition.>>  Applicable Percentage.--For purposes of 
this section, the term `applicable percentage' means--
            ``(1) in the case of sales of a designated drug during the 
        first 90 days described in subsection (b) with respect to such 
        drug, 65 percent,

[[Page 136 STAT. 1864]]

            ``(2) in the case of sales of such drug during the 91st day 
        through the 180th day described in subsection (b) with respect 
        to such drug, 75 percent,
            ``(3) in the case of sales of such drug during the 181st day 
        through the 270th day described in subsection (b) with respect 
        to such drug, 85 percent, and
            ``(4) in the case of sales of such drug during any 
        subsequent day, 95 percent.

    ``(e) Definitions.--For purposes of this section--
            ``(1) Designated drug.--The term `designated drug' means any 
        negotiation-eligible drug (as defined in section 1192(d) of the 
        Social Security Act) included on the list published under 
        section 1192(a) of such Act which is manufactured or produced in 
        the United States or entered into the United States for 
        consumption, use, or warehousing.
            ``(2) United states.--The term `United States' has the 
        meaning given such term by section 4612(a)(4).
            ``(3) Other terms.--The terms `initial price applicability 
        year', `price applicability period', and `maximum fair price' 
        have the meaning given such terms in section 1191 of the Social 
        Security Act.

    ``(f) Special Rules.--
            ``(1) <<NOTE: Applicability.>>  Coordination with rules for 
        possessions of the united states.--Rules similar to the rules of 
        paragraphs (2) and (4) of section 4132(c) shall apply for 
        purposes of this section.
            ``(2) Anti-abuse rule.--In the case of a sale which was 
        timed for the purpose of avoiding the tax imposed by this 
        section, the Secretary may treat such sale as occurring during a 
        day described in subsection (b).

    ``(g) <<NOTE: Applicability.>>  Exports.--Rules similar to the rules 
of section 4662(e) (other than section 4662(e)(2)(A)(ii)(II)) shall 
apply for purposes of this chapter.

    ``(h) <<NOTE: Guidelines.>>  Regulations.--The Secretary shall 
prescribe such regulations and other guidance as may be necessary to 
carry out this section.''.

    (b) No Deduction for Excise Tax Payments.--Section 275(a)(6) of the 
Internal Revenue Code of 1986 <<NOTE: 26 USC 275.>>  is amended by 
inserting ``50A,'' after ``46,''.

    (c) Clerical Amendment.--The table of chapters for subtitle D of the 
Internal Revenue Code of 1986 <<NOTE: 26 USC 4001 prec.>>  is amended by 
adding at the end the following new item:

                   ``Chapter 50A--Designated Drugs''.

    (d) <<NOTE: 26 USC 5000D note.>>  Effective Date.--The amendments 
made by this section shall apply to sales after the date of the 
enactment of this Act.
SEC. 11004. FUNDING.

    In addition to amounts otherwise available, there is appropriated to 
the Centers for Medicare & Medicaid Services, out of any money in the 
Treasury not otherwise appropriated, $3,000,000,000 for fiscal year 
2022, to remain available until expended, to carry out the provisions 
of, including the amendments made by, this part.

[[Page 136 STAT. 1865]]

               PART 2--PRESCRIPTION DRUG INFLATION REBATES

SEC. 11101. MEDICARE PART B REBATE BY MANUFACTURERS.

    (a) In General.--Section 1847A of the Social Security Act (42 U.S.C. 
1395w-3a) is amended by redesignating subsection (i) as subsection (j) 
and by inserting after subsection (h) the following subsection:
    ``(i) Rebate by Manufacturers for Single Source Drugs and 
Biologicals With Prices Increasing Faster Than Inflation.--
            ``(1) <<NOTE: Deadlines. Effective dates. Time periods.>>  
        Requirements.--
                    ``(A) <<NOTE: Reports.>>  Secretarial provision of 
                information.--Not later than 6 months after the end of 
                each calendar quarter beginning on or after January 1, 
                2023, the Secretary shall, for each part B rebatable 
                drug, report to each manufacturer of such part B 
                rebatable drug the following for such calendar quarter:
                          ``(i) Information on the total number of units 
                      of the billing and payment code described in 
                      subparagraph (A)(i) of paragraph (3) with respect 
                      to such drug and calendar quarter.
                          ``(ii) Information on the amount (if any) of 
                      the excess average sales price increase described 
                      in subparagraph (A)(ii) of such paragraph for such 
                      drug and calendar quarter.
                          ``(iii) The rebate amount specified under such 
                      paragraph for such part B rebatable drug and 
                      calendar quarter.
                    ``(B) Manufacturer requirement.--For each calendar 
                quarter beginning on or after January 1, 2023, the 
                manufacturer of a part B rebatable drug shall, for such 
                drug, not later than 30 days after the date of receipt 
                from the Secretary of the information described in 
                subparagraph (A) for such calendar quarter, provide to 
                the Secretary a rebate that is equal to the amount 
                specified in paragraph (3) for such drug for such 
                calendar quarter.
                    ``(C) Transition rule for reporting.--The Secretary 
                may, for each part B rebatable drug, delay the timeframe 
                for reporting the information described in subparagraph 
                (A) for calendar quarters beginning in 2023 and 2024 
                until not later than September 30, 2025.
            ``(2) Part b rebatable drug defined.--
                    ``(A) In general.--In this subsection, the term 
                `part B rebatable drug' means a single source drug or 
                biological (as defined in subparagraph (D) of subsection 
                (c)(6)), including a biosimilar biological product (as 
                defined in subparagraph (H) of such subsection) but 
                excluding a qualifying biosimilar biological product (as 
                defined in subsection (b)(8)(B)(iii)), for which payment 
                is made under this part, except such term shall not 
                include such a drug or biological--
                          ``(i) <<NOTE: Determination.>>  if, as 
                      determined by the Secretary, the average total 
                      allowed charges for such drug or biological under 
                      this part for a year per individual that uses such

[[Page 136 STAT. 1866]]

                      a drug or biological are less than, subject to 
                      subparagraph (B), $100; or
                          ``(ii) that is a vaccine described in 
                      subparagraph (A) or (B) of section 1861(s)(10).
                    ``(B) <<NOTE: Time periods.>>  Increase.--The dollar 
                amount applied under subparagraph (A)(i)--
                          ``(i) for 2024, shall be the dollar amount 
                      specified under such subparagraph for 2023, 
                      increased by the percentage increase in the 
                      consumer price index for all urban consumers 
                      (United States city average) for the 12-month 
                      period ending with June of the previous year; and
                          ``(ii) for a subsequent year, shall be the 
                      dollar amount specified in this clause (or clause 
                      (i)) for the previous year (without application of 
                      subparagraph (C)), increased by the percentage 
                      increase in the consumer price index for all urban 
                      consumers (United States city average) for the 12-
                      month period ending with June of the previous 
                      year.
                    ``(C) Rounding.--Any dollar amount determined under 
                subparagraph (B) that is not a multiple of $10 shall be 
                rounded to the nearest multiple of $10.
            ``(3) <<NOTE: Time periods.>>  Rebate amount.--
                    ``(A) <<NOTE: Estimate.>>  In general.--For purposes 
                of paragraph (1), the amount specified in this paragraph 
                for a part B rebatable drug assigned to a billing and 
                payment code for a calendar quarter is, subject to 
                subparagraphs (B) and (G) and paragraph (4), the 
                estimated amount equal to the product of--
                          ``(i) the total number of units determined 
                      under subparagraph (B) for the billing and payment 
                      code of such drug; and
                          ``(ii) the amount (if any) by which--
                                    ``(I) the amount equal to--
                                            ``(aa) in the case of a part 
                                        B rebatable drug described in 
                                        paragraph (1)(B) of subsection 
                                        (b), 106 percent of the amount 
                                        determined under paragraph (4) 
                                        of such section for such drug 
                                        during the calendar quarter; or
                                            ``(bb) in the case of a part 
                                        B rebatable drug described in 
                                        paragraph (1)(C) of such 
                                        subsection, the payment amount 
                                        under such paragraph for such 
                                        drug during the calendar 
                                        quarter; exceeds
                                    ``(II) the inflation-adjusted 
                                payment amount determined under 
                                subparagraph (C) for such part B 
                                rebatable drug during the calendar 
                                quarter.
                    ``(B) Total number of units.--For purposes of 
                subparagraph (A)(i), the total number of units for the 
                billing and payment code with respect to a part B 
                rebatable drug furnished during a calendar quarter 
                described in subparagraph (A) is equal to--
                          ``(i) the number of units for the billing and 
                      payment code of such drug furnished during such 
                      calendar quarter, minus

[[Page 136 STAT. 1867]]

                          ``(ii) the number of units for such billing 
                      and payment code of such drug furnished during 
                      such calendar quarter--
                                    ``(I) with respect to which the 
                                manufacturer provides a discount under 
                                the program under section 340B of the 
                                Public Health Service Act or a rebate 
                                under section 1927; or
                                    ``(II) that are packaged into the 
                                payment amount for an item or service 
                                and are not separately payable.
                    ``(C) Determination of inflation-adjusted payment 
                amount.--The inflation-adjusted payment amount 
                determined under this subparagraph for a part B 
                rebatable drug for a calendar quarter is--
                          ``(i) the payment amount for the billing and 
                      payment code for such drug in the payment amount 
                      benchmark quarter (as defined in subparagraph 
                      (D)); increased by
                          ``(ii) the percentage by which the rebate 
                      period CPI-U (as defined in subparagraph (F)) for 
                      the calendar quarter exceeds the benchmark period 
                      CPI-U (as defined in subparagraph (E)).
                    ``(D) <<NOTE: Definition.>>  Payment amount 
                benchmark quarter.--The term `payment amount benchmark 
                quarter' means the calendar quarter beginning July 1, 
                2021.
                    ``(E) <<NOTE: Definition.>>  Benchmark period cpi-
                u.--The term `benchmark period CPI-U' means the consumer 
                price index for all urban consumers (United States city 
                average) for January 2021.
                    ``(F) Rebate period cpi-u.--The term `rebate period 
                CPI-U' means, with respect to a calendar quarter 
                described in subparagraph (C), the greater of the 
                benchmark period CPI-U and the consumer price index for 
                all urban consumers (United States city average) for the 
                first month of the calendar quarter that is two calendar 
                quarters prior to such described calendar quarter.
                    ``(G) Reduction or waiver for shortages and severe 
                supply chain disruptions.--The Secretary shall reduce or 
                waive the amount under subparagraph (A) with respect to 
                a part B rebatable drug and a calendar quarter--
                          ``(i) in the case of a part B rebatable drug 
                      that is described as currently in shortage on the 
                      shortage list in effect under section 506E of the 
                      Federal Food, Drug, and Cosmetic Act at any point 
                      during the calendar quarter; or
                          ``(ii) <<NOTE: Determination.>>  in the case 
                      of a biosimilar biological product, when the 
                      Secretary determines there is a severe supply 
                      chain disruption during the calendar quarter, such 
                      as that caused by a natural disaster or other 
                      unique or unexpected event.
            ``(4) <<NOTE: Effective dates. Applicability. Time 
        periods.>>  Special treatment of certain drugs and exemption.--
                    ``(A) Subsequently approved drugs.--In the case of a 
                part B rebatable drug first approved or licensed by the 
                Food and Drug Administration after December 1, 2020, 
                clause (i) of paragraph (3)(C) shall be applied as if 
                the term `payment amount benchmark quarter' were defined

[[Page 136 STAT. 1868]]

                under paragraph (3)(D) as the third full calendar 
                quarter after the day on which the drug was first 
                marketed and clause (ii) of paragraph (3)(C) shall be 
                applied as if the term `benchmark period CPI-U' were 
                defined under paragraph (3)(E) as if the reference to 
                `January 2021' under such paragraph were a reference to 
                `the first month of the first full calendar quarter 
                after the day on which the drug was first marketed'.
                    ``(B) Timeline for provision of rebates for 
                subsequently approved drugs.--In the case of a part B 
                rebatable drug first approved or licensed by the Food 
                and Drug Administration after December 1, 2020, 
                paragraph (1)(B) shall be applied as if the reference to 
                `January 1, 2023' under such paragraph were a reference 
                to `the later of the 6th full calendar quarter after the 
                day on which the drug was first marketed or January 1, 
                2023'.
                    ``(C) Selected drugs.--In the case of a part B 
                rebatable drug that is a selected drug (as defined in 
                section 1192(c)) with respect to a price applicability 
                period (as defined in section 1191(b)(2)), in the case 
                such drug is no longer considered to be a selected drug 
                under section 1192(c), for each applicable period (as 
                defined under subsection (g)(7)) beginning after the 
                price applicability period with respect to such drug, 
                clause (i) of paragraph (3)(C) shall be applied as if 
                the term `payment amount benchmark quarter' were defined 
                under paragraph (3)(D) as the calendar quarter beginning 
                January 1 of the last year during such price 
                applicability period with respect to such selected drug 
                and clause (ii) of paragraph (3)(C) shall be applied as 
                if the term `benchmark period CPI-U' were defined under 
                paragraph (3)(E) as if the reference to `January 2021' 
                under such paragraph were a reference to `the July of 
                the year preceding such last year'.
            ``(5) <<NOTE: Effective date. Time period.>>  Application to 
        beneficiary coinsurance.--In the case of a part B rebatable drug 
        furnished on or after April 1, 2023, if the payment amount 
        described in paragraph (3)(A)(ii)(I) (or, in the case of a part 
        B rebatable drug that is a selected drug (as defined in section 
        1192(c)), the payment amount described in subsection (b)(1)(B) 
        for such drug) for a calendar quarter exceeds the inflation 
        adjusted payment for such quarter--
                    ``(A) in computing the amount of any coinsurance 
                applicable under this part to an individual to whom such 
                drug is furnished, the computation of such coinsurance 
                shall be equal to 20 percent of the inflation-adjusted 
                payment amount determined under paragraph (3)(C) for 
                such part B rebatable drug; and
                    ``(B) <<NOTE: Applicability. Determination.>>  the 
                amount of such coinsurance for such calendar quarter, as 
                computed under subparagraph (A), shall be applied as a 
                percent, as determined by the Secretary, to the payment 
                amount that would otherwise apply under subparagraphs 
                (B) or (C) of subsection (b)(1).
            ``(6) Rebate deposits.--Amounts paid as rebates under 
        paragraph (1)(B) shall be deposited into the Federal 
        Supplementary Medical Insurance Trust Fund established under 
        section 1841.

[[Page 136 STAT. 1869]]

            ``(7) <<NOTE: Time period.>>  Civil money penalty.--If a 
        manufacturer of a part B rebatable drug has failed to comply 
        with the requirements under paragraph (1)(B) for such drug for a 
        calendar quarter, the manufacturer shall be subject to, in 
        accordance with a process established by the Secretary pursuant 
        to regulations, a civil money penalty in an amount equal to at 
        least 125 percent of the amount specified in paragraph (3) for 
        such drug for such calendar quarter. 
        The <<NOTE: Applicability.>>  provisions of section 1128A (other 
        than subsections (a) (with respect to amounts of penalties or 
        additional assessments) and (b)) shall apply to a civil money 
        penalty under this paragraph in the same manner as such 
        provisions apply to a penalty or proceeding under section 
        1128A(a).
            ``(8) Limitation on administrative or judicial review.--
        There shall be no administrative or judicial review of any of 
        the following:
                    ``(A) The determination of units under this 
                subsection.
                    ``(B) The determination of whether a drug is a part 
                B rebatable drug under this subsection.
                    ``(C) The calculation of the rebate amount under 
                this subsection.
                    ``(D) The computation of coinsurance under paragraph 
                (5) of this subsection.
                    ``(E) The computation of amounts paid under section 
                1833(a)(1)(EE).''.

    (b) Amounts Payable; Cost-Sharing.--Section 1833 of the Social 
Security Act (42 U.S.C. 1395l) is amended--
            (1) in subsection (a)(1)--
                    (A) in subparagraph (G), by inserting ``, subject to 
                subsection (i)(9),'' after ``the amounts paid'';
                    (B) in subparagraph (S), by striking ``with respect 
                to'' and inserting ``subject to subparagraph (EE), with 
                respect to'';
                    (C) by striking ``and (DD)'' and inserting ``(DD)''; 
                and
                    (D) <<NOTE: Effective date. Time 
                period. Applicability.>>  by inserting before the 
                semicolon at the end the following: ``, and (EE) with 
                respect to a part B rebatable drug (as defined in 
                paragraph (2) of section 1847A(i)) furnished on or after 
                April 1, 2023, for which the payment amount for a 
                calendar quarter under paragraph (3)(A)(ii)(I) of such 
                section (or, in the case of a part B rebatable drug that 
                is a selected drug (as defined in section 1192(c) for 
                which, the payment amount described in section 
                1847A(b)(1)(B)) for such drug for such quarter exceeds 
                the inflation-adjusted payment under paragraph 
                (3)(A)(ii)(II) of such section for such quarter, the 
                amounts paid shall be equal to the percent of the 
                payment amount under paragraph (3)(A)(ii)(I) of such 
                section or section 1847A(b)(1)(B), as applicable, that 
                equals the difference between (i) 100 percent, and (ii) 
                the percent applied under section 1847A(i)(5)(B)'';
            (2) in subsection (i), by adding at the end the following 
        new paragraph:

    ``(9) <<NOTE: Effective date. Determination. Applicability.>>  In 
the case of a part B rebatable drug (as defined in paragraph (2) of 
section 1847A(i)) for which payment under this subsection is not 
packaged into a payment for a service furnished on or after April 1, 
2023, under the revised payment system under this subsection, in lieu of 
calculation of coinsurance and the amount

[[Page 136 STAT. 1870]]

of payment otherwise applicable under this subsection, the provisions of 
section 1847A(i)(5) and paragraph (1)(EE) of subsection (a), shall, as 
determined appropriate by the Secretary, apply under this subsection in 
the same manner as such provisions of section 1847A(i)(5) and subsection 
(a) apply under such section and subsection.''; and
            (3) in subsection (t)(8), by adding at the end the following 
        new subparagraph:
                    ``(F) <<NOTE: Effective date. Time 
                period. Determination. Applicability.>>  Part b 
                rebatable drugs.--In the case of a part B rebatable drug 
                (as defined in paragraph (2) of section 1847A(i), except 
                if such drug does not have a copayment amount as a 
                result of application of subparagraph (E)) for which 
                payment under this part is not packaged into a payment 
                for a covered OPD service (or group of services) 
                furnished on or after April 1, 2023, and the payment for 
                such drug under this subsection is the same as the 
                amount for a calendar quarter under paragraph 
                (3)(A)(ii)(I) of section 1847A(i), under the system 
                under this subsection, in lieu of calculation of the 
                copayment amount and the amount of payment otherwise 
                applicable under this subsection (other than the 
                application of the limitation described in subparagraph 
                (C)), the provisions of section 1847A(i)(5) and 
                paragraph (1)(EE) of subsection (a), shall, as 
                determined appropriate by the Secretary, apply under 
                this subsection in the same manner as such provisions of 
                section 1847A(i)(5) and subsection (a) apply under such 
                section and subsection.''.

    (c) Conforming Amendments.--
            (1) To part b asp calculation.--Section 1847A(c)(3) of the 
        Social Security Act (42 U.S.C. 1395w-3a(c)(3)) is amended by 
        inserting ``subsection (i) or'' before ``section 1927''.
            (2) Excluding part b drug inflation rebate from best 
        price.--Section 1927(c)(1)(C)(ii)(I) of the Social Security Act 
        (42 U.S.C. 1396r-8(c)(1)(C)(ii)(I)) is amended by inserting ``or 
        section 1847A(i)'' after ``this section''.
            (3) Coordination with medicaid rebate information 
        disclosure.--Section 1927(b)(3)(D)(i) of the Social Security Act 
        (42 U.S.C. 1396r-8(b)(3)(D)(i)) is amended by inserting ``and 
        the rebate'' after ``the payment amount''.
            (4) Excluding part b drug inflation rebates from average 
        manufacturer price.--Section 1927(k)(1)(B)(i) of the Social 
        Security Act (42 U.S.C. 1396r-8(k)(1)(B)(i)), as amended by 
        section 11001(b)(3), is amended--
                    (A) in subclause (V), by striking ``and'' at the 
                end;
                    (B) in subclause (VI), by striking the period at the 
                end and inserting a semicolon; and
                    (C) by adding at the end the following new 
                subclause:
                                    ``(VII) rebates paid by 
                                manufacturers under section 1847A(i); 
                                and''.

    (d) <<NOTE: Time period.>>  Funding.--In addition to amounts 
otherwise available, there are appropriated to the Centers for Medicare 
& Medicaid Services, out of any money in the Treasury not otherwise 
appropriated, $80,000,000 for fiscal year 2022, including $12,500,000 to 
carry out the provisions of, including the amendments made by, this 
section in fiscal year 2022, and $7,500,000 to carry out the provisions 
of, including the amendments made by, this section

[[Page 136 STAT. 1871]]

in each of fiscal years 2023 through 2031, to remain available until 
expended.
SEC. 11102. MEDICARE PART D REBATE BY MANUFACTURERS.

    (a) In General.--Part D of title XVIII of the Social Security Act is 
amended by inserting after section 1860D-14A (42 U.S.C. 1395w-114a) the 
following new section:
``SEC. 1860D-14B. <<NOTE: 42 USC 1395w-114b.>>  MANUFACTURER 
                              REBATE FOR CERTAIN DRUGS WITH PRICES 
                              INCREASING FASTER THAN INFLATION.

    ``(a) Requirements.--
            ``(1) <<NOTE: Reports.>>  Secretarial provision of 
        information.--Not later than 9 months after the end of each 
        applicable period (as defined in subsection (g)(7)), subject to 
        paragraph (3), the Secretary shall, for each part D rebatable 
        drug, report to each manufacturer of such part D rebatable drug 
        the following for such period:
                    ``(A) The amount (if any) of the excess annual 
                manufacturer price increase described in subsection 
                (b)(1)(A)(ii) for each dosage form and strength with 
                respect to such drug and period.
                    ``(B) The rebate amount specified under subsection 
                (b) for each dosage form and strength with respect to 
                such drug and period.
            ``(2) <<NOTE: Deadline.>>  Manufacturer requirements.--For 
        each applicable period, the manufacturer of a part D rebatable 
        drug, for each dosage form and strength with respect to such 
        drug, not later than 30 days after the date of receipt from the 
        Secretary of the information described in paragraph (1) for such 
        period, shall provide to the Secretary a rebate that is equal to 
        the amount specified in subsection (b) for such dosage form and 
        strength with respect to such drug for such period.
            ``(3) <<NOTE: Time period. Effective date.>>  Transition 
        rule for reporting.--The Secretary may, for each rebatable 
        covered part D drug, delay the timeframe for reporting the 
        information and rebate amount described in subparagraphs (A) and 
        (B) of such paragraph for the applicable periods beginning 
        October 1, 2022, and October 1, 2023, until not later than 
        December 31, 2025.

    ``(b) <<NOTE: Determinations.>>  Rebate Amount.--
            ``(1) In general.--
                    ``(A) Calculation.--For purposes of this section, 
                the amount specified in this subsection for a dosage 
                form and strength with respect to a part D rebatable 
                drug and applicable period is, subject to subparagraph 
                (C), paragraph (5)(B), and paragraph (6), the estimated 
                amount equal to the product of--
                          ``(i) subject to subparagraph (B) of this 
                      paragraph, the total number of units of such 
                      dosage form and strength for each rebatable 
                      covered part D drug dispensed under this part 
                      during the applicable period; and
                          ``(ii) the amount (if any) by which--
                                    ``(I) the annual manufacturer price 
                                (as determined in paragraph (2)) paid 
                                for such dosage form and strength with 
                                respect to such part D rebatable drug 
                                for the period; exceeds
                                    ``(II) the inflation-adjusted 
                                payment amount determined under 
                                paragraph (3) for such dosage

[[Page 136 STAT. 1872]]

                                form and strength with respect to such 
                                part D rebatable drug for the period.
                    ``(B) <<NOTE: Effective date.>>  Excluded units.--
                For purposes of subparagraph (A)(i), beginning with plan 
                year 2026, the Secretary shall exclude from the total 
                number of units for a dosage form and strength with 
                respect to a part D rebatable drug, with respect to an 
                applicable period, units of each dosage form and 
                strength of such part D rebatable drug for which the 
                manufacturer provides a discount under the program under 
                section 340B of the Public Health Service Act.
                    ``(C) Reduction or waiver for shortages and severe 
                supply chain disruptions.--The Secretary shall reduce or 
                waive the amount under subparagraph (A) with respect to 
                a part D rebatable drug and an applicable period--
                          ``(i) in the case of a part D rebatable drug 
                      that is described as currently in shortage on the 
                      shortage list in effect under section 506E of the 
                      Federal Food, Drug, and Cosmetic Act at any point 
                      during the applicable period;
                          ``(ii) in the case of a generic part D 
                      rebatable drug (described in subsection 
                      (g)(1)(C)(ii)) or a biosimilar (defined as a 
                      biological product licensed under section 351(k) 
                      of the Public Health Service Act), when the 
                      Secretary determines there is a severe supply 
                      chain disruption during the applicable period, 
                      such as that caused by a natural disaster or other 
                      unique or unexpected event; and
                          ``(iii) in the case of a generic Part D 
                      rebatable drug (as so described), if the Secretary 
                      determines that without such reduction or waiver, 
                      the drug is likely to be described as in shortage 
                      on such shortage list during a subsequent 
                      applicable period.
            ``(2) Determination of annual manufacturer price.--The 
        annual manufacturer price determined under this paragraph for a 
        dosage form and strength, with respect to a part D rebatable 
        drug and an applicable period, is the sum of the products of--
                    ``(A) the average manufacturer price (as defined in 
                subsection (g)(6)) of such dosage form and strength, as 
                calculated for a unit of such drug, with respect to each 
                of the calendar quarters of such period; and
                    ``(B) the ratio of--
                          ``(i) the total number of units of such dosage 
                      form and strength reported under section 1927 with 
                      respect to each such calendar quarter of such 
                      period; to
                          ``(ii) the total number of units of such 
                      dosage form and strength reported under section 
                      1927 with respect to such period, as determined by 
                      the Secretary.
            ``(3) Determination of inflation-adjusted payment amount.--
        The inflation-adjusted payment amount determined under this 
        paragraph for a dosage form and strength with respect to a part 
        D rebatable drug for an applicable period, subject to paragraph 
        (5), is--
                    ``(A) the benchmark period manufacturer price 
                determined under paragraph (4) for such dosage form and 
                strength with respect to such drug and period; increased 
                by

[[Page 136 STAT. 1873]]

                    ``(B) the percentage by which the applicable period 
                CPI-U (as defined in subsection (g)(5)) for the period 
                exceeds the benchmark period CPI-U (as defined in 
                subsection (g)(4)).
            ``(4) Determination of benchmark period manufacturer 
        price.--The benchmark period manufacturer price determined under 
        this paragraph for a dosage form and strength, with respect to a 
        part D rebatable drug and an applicable period, is the sum of 
        the products of--
                    ``(A) the average manufacturer price (as defined in 
                subsection (g)(6)) of such dosage form and strength, as 
                calculated for a unit of such drug, with respect to each 
                of the calendar quarters of the payment amount benchmark 
                period (as defined in subsection (g)(3)); and
                    ``(B) the ratio of--
                          ``(i) the total number of units reported under 
                      section 1927 of such dosage form and strength with 
                      respect to each such calendar quarter of such 
                      payment amount benchmark period; to
                          ``(ii) the total number of units reported 
                      under section 1927 of such dosage form and 
                      strength with respect to such payment amount 
                      benchmark period.
            ``(5) Special treatment of certain drugs and exemption.--
                    ``(A) <<NOTE: Effective dates. Applicability. Time 
                period.>>  Subsequently approved drugs.--In the case of 
                a part D rebatable drug first approved or licensed by 
                the Food and Drug Administration after October 1, 2021, 
                subparagraphs (A) and (B) of paragraph (4) shall be 
                applied as if the term `payment amount benchmark period' 
                were defined under subsection (g)(3) as the first 
                calendar year beginning after the day on which the drug 
                was first marketed and subparagraph (B) of paragraph (3) 
                shall be applied as if the term `benchmark period CPI-U' 
                were defined under subsection (g)(4) as if the reference 
                to `January 2021' under such subsection were a reference 
                to `January of the first year beginning after the date 
                on which the drug was first marketed'.
                    ``(B) Treatment of new formulations.--
                          ``(i) In general.--In the case of a part D 
                      rebatable drug that is a line extension of a part 
                      D rebatable drug that is an oral solid dosage 
                      form, the Secretary shall establish a formula for 
                      determining the rebate amount under paragraph (1) 
                      and the inflation adjusted payment amount under 
                      paragraph (3) with respect to such part D 
                      rebatable drug and an applicable period, 
                      consistent with the formula applied under 
                      subsection (c)(2)(C) of section 1927 for 
                      determining a rebate obligation for a rebate 
                      period under such section.
                          ``(ii) Line extension defined.--In this 
                      subparagraph, the term `line extension' means, 
                      with respect to a part D rebatable drug, a new 
                      formulation of the drug, such as an extended 
                      release formulation, but does not include an 
                      abuse-deterrent formulation of the drug (as 
                      determined by the Secretary), regardless of 
                      whether such abuse-deterrent formulation is an 
                      extended release formulation.

[[Page 136 STAT. 1874]]

                    ``(C) <<NOTE: Effective date. Applicability.>>  
                Selected drugs.--In the case of a part D rebatable drug 
                that is a selected drug (as defined in section 1192(c)) 
                with respect to a price applicability period (as defined 
                in section 1191(b)(2)), in the case such drug is no 
                longer considered to be a selected drug under section 
                1192(c), for each applicable period (as defined under 
                subsection (g)(7)) beginning after the price 
                applicability period with respect to such drug, 
                subparagraphs (A) and (B) of paragraph (4) shall be 
                applied as if the term `payment amount benchmark period' 
                were defined under subsection (g)(3) as the last year 
                beginning during such price applicability period with 
                respect to such selected drug and subparagraph (B) of 
                paragraph (3) shall be applied as if the term `benchmark 
                period CPI-U' were defined under subsection (g)(4) as if 
                the reference to `January 2021' under such subsection 
                were a reference to `January of the last year beginning 
                during such price applicability period with respect to 
                such drug'.
            ``(6) Reconciliation in case of revised information.--The 
        Secretary shall provide for a method and process under which, in 
        the case where a PDP sponsor of a prescription drug plan or an 
        MA organization offering an MA-PD plan submits revisions to the 
        number of units of a rebatable covered part D drug dispensed, 
        the Secretary determines, pursuant to such revisions, 
        adjustments, if any, to the calculation of the amount specified 
        in this subsection for a dosage form and strength with respect 
        to such part D rebatable drug and an applicable period and 
        reconciles any overpayments or underpayments in amounts paid as 
        rebates under this subsection. <<NOTE: Deadline.>>  Any 
        identified underpayment shall be rectified by the manufacturer 
        not later than 30 days after the date of receipt from the 
        Secretary of information on such underpayment.

    ``(c) Rebate Deposits.--Amounts paid as rebates under subsection (b) 
shall be deposited into the Medicare Prescription Drug Account in the 
Federal Supplementary Medical Insurance Trust Fund established under 
section 1841.
    ``(d) Information.--For purposes of carrying out this section, the 
Secretary shall use information submitted by--
            ``(1) manufacturers under section 1927(b)(3);
            ``(2) States under section 1927(b)(2)(A); and
            ``(3) PDP sponsors of prescription drug plans and MA 
        organization offering MA-PD plans under this part.

    ``(e) Civil Money Penalty.--If a manufacturer of a part D rebatable 
drug has failed to comply with the requirement under subsection (a)(2) 
with respect to such drug for an applicable period, the manufacturer 
shall be subject to a civil money penalty in an amount equal to 125 
percent of the amount specified in subsection (b) for such drug for such 
period. The <<NOTE: Applicability.>>  provisions of section 1128A (other 
than subsections (a) (with respect to amounts of penalties or additional 
assessments) and (b)) shall apply to a civil money penalty under this 
subsection in the same manner as such provisions apply to a penalty or 
proceeding under section 1128A(a).

    ``(f) Limitation on Administrative or Judicial Review.--There shall 
be no administrative or judicial review of any of the following:
            ``(1) The determination of units under this section.

[[Page 136 STAT. 1875]]

            ``(2) The determination of whether a drug is a part D 
        rebatable drug under this section.
            ``(3) The calculation of the rebate amount under this 
        section.

    ``(g) Definitions.--In this section:
            ``(1) Part d rebatable drug.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the term `part D rebatable drug' 
                means, with respect to an applicable period, a drug or 
                biological described in subparagraph (C) that is a 
                covered part D drug (as such term is defined under 
                section 1860D-2(e)).
                    ``(B) Exclusion.--
                          ``(i) <<NOTE: Determinations. Estimate.>>  In 
                      general.--Such term shall, with respect to an 
                      applicable period, not include a drug or 
                      biological if the average annual total cost under 
                      this part for such period per individual who uses 
                      such a drug or biological, as determined by the 
                      Secretary, is less than, subject to clause (ii), 
                      $100, as determined by the Secretary using the 
                      most recent data available or, if data is not 
                      available, as estimated by the Secretary.
                          ``(ii) <<NOTE: Time periods. Effective 
                      dates.>>  Increase.--The dollar amount applied 
                      under clause (i)--
                                    ``(I) for the applicable period 
                                beginning October 1, 2023, shall be the 
                                dollar amount specified under such 
                                clause for the applicable period 
                                beginning October 1, 2022, increased by 
                                the percentage increase in the consumer 
                                price index for all urban consumers 
                                (United States city average) for the 12-
                                month period beginning with October of 
                                2023; and
                                    ``(II) for a subsequent applicable 
                                period, shall be the dollar amount 
                                specified in this clause for the 
                                previous applicable period, increased by 
                                the percentage increase in the consumer 
                                price index for all urban consumers 
                                (United States city average) for the 12-
                                month period beginning with October of 
                                the previous period.
                      Any dollar amount specified under this clause that 
                      is not a multiple of $10 shall be rounded to the 
                      nearest multiple of $10.
                    ``(C) Drug or biological described.--A drug or 
                biological described in this subparagraph is a drug or 
                biological that, as of the first day of the applicable 
                period involved, is--
                          ``(i) a drug approved under a new drug 
                      application under section 505(c) of the Federal 
                      Food, Drug, and Cosmetic Act;
                          ``(ii) a drug approved under an abbreviated 
                      new drug application under section 505(j) of the 
                      Federal Food, Drug, and Cosmetic Act, in the case 
                      where--
                                    ``(I) the reference listed drug 
                                approved under section 505(c) of the 
                                Federal Food, Drug, and Cosmetic Act, 
                                including any `authorized generic drug' 
                                (as that term is defined in section 
                                505(t)(3) of the Federal Food, Drug, and 
                                Cosmetic Act), is not being marketed, as 
                                identified in the Food and Drug 
                                Administration's National Drug Code 
                                Directory;

[[Page 136 STAT. 1876]]

                                    ``(II) there is no other drug 
                                approved under section 505(j) of the 
                                Federal Food, Drug, and Cosmetic Act 
                                that is rated as therapeutically 
                                equivalent (under the Food and Drug 
                                Administration's most recent publication 
                                of `Approved Drug Products with 
                                Therapeutic Equivalence Evaluations') 
                                and that is being marketed, as 
                                identified in the Food and Drug 
                                Administration's National Drug Code 
                                Directory;
                                    ``(III) <<NOTE: Time period.>>  the 
                                manufacturer is not a `first applicant' 
                                during the `180-day exclusivity period', 
                                as those terms are defined in section 
                                505(j)(5)(B)(iv) of the Federal Food, 
                                Drug, and Cosmetic Act; and
                                    ``(IV) the manufacturer is not a 
                                `first approved applicant' for a 
                                competitive generic therapy, as that 
                                term is defined in section 
                                505(j)(5)(B)(v) of the Federal Food, 
                                Drug, and Cosmetic Act; or
                          ``(iii) a biological licensed under section 
                      351 of the Public Health Service Act.
            ``(2) Unit.--The term `unit' means, with respect to a part D 
        rebatable drug, the lowest dispensable amount (such as a capsule 
        or tablet, milligram of molecules, or grams) of the part D 
        rebatable drug, as reported under section 1927.
            ``(3) Payment amount benchmark period.--The term `payment 
        amount benchmark period' means the period beginning January 1, 
        2021, and ending in the month immediately prior to October 1, 
        2021.
            ``(4) Benchmark period cpi-u.--The term `benchmark period 
        CPI-U' means the consumer price index for all urban consumers 
        (United States city average) for January 2021.
            ``(5) Applicable period cpi-u.--The term `applicable period 
        CPI-U' means, with respect to an applicable period, the consumer 
        price index for all urban consumers (United States city average) 
        for the first month of such applicable period.
            ``(6) Average manufacturer price.--The term `average 
        manufacturer price' has the meaning, with respect to a part D 
        rebatable drug of a manufacturer, given such term in section 
        1927(k)(1), with respect to a covered outpatient drug of a 
        manufacturer for a rebate period under section 1927.
            ``(7) Applicable period.--The term `applicable period' means 
        a 12-month period beginning with October 1 of a year (beginning 
        with October 1, 2022).

    ``(h) Implementation for 2022, 2023, and 2024.--The Secretary shall 
implement this section for 2022, 2023, and 2024 by program instruction 
or other forms of program guidance.''.
    (b) Conforming Amendments.--
            (1) To part b asp calculation.--Section 1847A(c)(3) of the 
        Social Security Act (42 U.S.C. 1395w-3a(c)(3)), as amended by 
        section 11101(c)(1), is amended by striking ``subsection (i) or 
        section 1927'' and inserting ``subsection (i), section 1927, or 
        section 1860D-14B''.
            (2) Excluding part d drug inflation rebate from best 
        price.--Section 1927(c)(1)(C)(ii)(I) of the Social Security Act 
        (42 U.S.C. 1396r-8(c)(1)(C)(ii)(I)), as amended by section 
        11101(c)(2), is amended by striking ``or section 1847A(i)'' and 
        inserting ``, section 1847A(i), or section 1860D-14B''.

[[Page 136 STAT. 1877]]

            (3) Coordination with medicaid rebate information 
        disclosure.--Section 1927(b)(3)(D)(i) of the Social Security Act 
        (42 U.S.C. 1396r-8(b)(3)(D)(i)), as amended by sections 11002(b) 
        and 11101(c)(3), is amended by striking ``or section 1192(f), 
        including rebates under paragraph (4) of such section'' and 
        inserting ``, section 1192(f), including rebates under paragraph 
        (4) of such section, or section 1860D-14B''.
            (4) Excluding part d drug inflation rebates from average 
        manufacturer price.--Section 1927(k)(1)(B)(i) of the Social 
        Security Act (42 U.S.C. 1396r-8(k)(1)(B)(i)), as amended by 
        section 11001(b)(3) and section 11101(c)(4), is amended by 
        adding at the end the following new subclause:
                    (A) in subclause (VI), by striking ``and'' at the 
                end;
                    (B) in subclause (VII), by striking the period at 
                the end and inserting a semicolon; and
                    (C) by adding at the end the following new 
                subclause:
                                    ``(VIII) rebates paid by 
                                manufacturers under section 1860D-
                                14B.''.

    (c) <<NOTE: Time periods.>>  Funding.--In addition to amounts 
otherwise available, there are appropriated to the Centers for Medicare 
& Medicaid Services, out of any money in the Treasury not otherwise 
appropriated, $80,000,000 for fiscal year 2022, including $12,500,000 to 
carry out the provisions of, including the amendments made by, this 
section in fiscal year 2022, and $7,500,000 to carry out the provisions 
of, including the amendments made by, this section in each of fiscal 
years 2023 through 2031, to remain available until expended.

 PART 3--PART D IMPROVEMENTS AND MAXIMUM OUT-OF-POCKET CAP FOR MEDICARE 
                              BENEFICIARIES

SEC. 11201. <<NOTE: Time periods.>>  MEDICARE PART D BENEFIT 
                            REDESIGN.

    (a) Benefit Structure Redesign.--Section 1860D-2(b) of the Social 
Security Act (42 U.S.C. 1395w-102(b)) is amended--
            (1) in paragraph (2)--
                    (A) in subparagraph (A), in the matter preceding 
                clause (i), by inserting ``for a year preceding 2025 and 
                for costs above the annual deductible specified in 
                paragraph (1) and up to the annual out-of-pocket 
                threshold specified in paragraph (4)(B) for 2025 and 
                each subsequent year'' after ``paragraph (3)'';
                    (B) in subparagraph (C)--
                          (i) in clause (i), in the matter preceding 
                      subclause (I), by inserting ``for a year preceding 
                      2025,'' after ``paragraph (4),''; and
                          (ii) in clause (ii)(III), by striking ``and 
                      each subsequent year'' and inserting ``through 
                      2024''; and
                    (C) in subparagraph (D)--
                          (i) in clause (i)--
                                    (I) in the matter preceding 
                                subclause (I), by inserting ``for a year 
                                preceding 2025,'' after ``paragraph 
                                (4),''; and
                                    (II) in subclause (I)(bb), by 
                                striking ``a year after 2018'' and 
                                inserting ``each of years 2019 through 
                                2024''; and

[[Page 136 STAT. 1878]]

                          (ii) in clause (ii)(V), by striking ``2019 and 
                      each subsequent year'' and inserting ``each of 
                      years 2019 through 2024'';
            (2) in paragraph (3)(A)--
                    (A) in the matter preceding clause (i), by inserting 
                ``for a year preceding 2025,'' after ``and (4),''; and
                    (B) in clause (ii), by striking ``for a subsequent 
                year'' and inserting ``for each of years 2007 through 
                2024''; and
            (3) in paragraph (4)--
                    (A) in subparagraph (A)--
                          (i) in clause (i)--
                                    (I) by redesignating subclauses (I) 
                                and (II) as items (aa) and (bb), 
                                respectively, and moving the margin of 
                                each such redesignated item 2 ems to the 
                                right;
                                    (II) in the matter preceding item 
                                (aa), as redesignated by subclause (I), 
                                by striking ``is equal to the greater 
                                of--'' and inserting ``is equal to--
                                    ``(I) for a year preceding 2024, the 
                                greater of--'';
                                    (III) by striking the period at the 
                                end of item (bb), as redesignated by 
                                subclause (I), and inserting ``; and''; 
                                and
                                    (IV) by adding at the end the 
                                following:
                                    ``(II) for 2024 and each succeeding 
                                year, $0.''; and
                          (ii) in clause (ii)--
                                    (I) by striking ``clause (i)(I)'' 
                                and inserting ``clause (i)(I)(aa)''; and
                                    (II) by adding at the end the 
                                following new sentence: ``The Secretary 
                                shall continue to calculate the dollar 
                                amounts specified in clause (i)(I)(aa), 
                                including with the adjustment under this 
                                clause, after 2023 for purposes of 
                                section 1860D-14(a)(1)(D)(iii).'';
                    (B) in subparagraph (B)--
                          (i) in clause (i)--
                                    (I) in subclause (V), by striking 
                                ``or'' at the end;
                                    (II) in subclause (VI)--
                                            (aa) by striking ``for a 
                                        subsequent year'' and inserting 
                                        ``for each of years 2021 through 
                                        2024''; and
                                            (bb) by striking the period 
                                        at the end and inserting a 
                                        semicolon; and
                                    (III) by adding at the end the 
                                following new subclauses:
                                    ``(VII) for 2025, is equal to 
                                $2,000; or
                                    ``(VIII) for a subsequent year, is 
                                equal to the amount specified in this 
                                subparagraph for the previous year, 
                                increased by the annual percentage 
                                increase described in paragraph (6) for 
                                the year involved.''; and
                          (ii) in clause (ii), by striking ``clause 
                      (i)(II)'' and inserting ``clause (i)'';
                    (C) in subparagraph (C)--

[[Page 136 STAT. 1879]]

                          (i) in clause (i), by striking ``and for 
                      amounts'' and inserting ``and, for a year 
                      preceding 2025, for amounts''; and
                          (ii) in clause (iii)--
                                    (I) by redesignating subclauses (I) 
                                through (IV) as items (aa) through (dd) 
                                and indenting appropriately;
                                    (II) by striking ``if such costs are 
                                borne or paid'' and inserting ``if such 
                                costs--
                                    ``(I) are borne or paid--''; and
                                    (III) in item (dd), by striking the 
                                period at the end and inserting ``; 
                                or''; and
                                    (IV) by adding at the end the 
                                following new subclause:
                                    ``(II) for 2025 and subsequent 
                                years, are reimbursed through insurance, 
                                a group health plan, or certain other 
                                third party payment arrangements, but 
                                not including the coverage provided by a 
                                prescription drug plan or an MA-PD plan 
                                that is basic prescription drug coverage 
                                (as defined in subsection (a)(3)) or any 
                                payments by a manufacturer under the 
                                manufacturer discount program under 
                                section 1860D-14C.''; and
                    (D) in subparagraph (E), by striking ``In applying'' 
                and inserting ``For each of years 2011 through 2024, in 
                applying''.

    (b) Reinsurance Payment Amount.--Section 1860D-15(b) of the Social 
Security Act (42 U.S.C. 1395w-115(b)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``equal to 80 percent'' and 
                inserting ``equal to--
                    ``(A) for a year preceding 2025, 80 percent'';
                    (B) in subparagraph (A), as added by subparagraph 
                (A), by striking the period at the end and inserting ``; 
                and''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(B) for 2025 and each subsequent year, the sum 
                of--
                          ``(i) with respect to applicable drugs (as 
                      defined in section 1860D-14C(g)(2)), an amount 
                      equal to 20 percent of such allowable reinsurance 
                      costs attributable to that portion of gross 
                      covered prescription drug costs as specified in 
                      paragraph (3) incurred in the coverage year after 
                      such individual has incurred costs that exceed the 
                      annual out-of-pocket threshold specified in 
                      section 1860D-2(b)(4)(B); and
                          ``(ii) with respect to covered part D drugs 
                      that are not applicable drugs (as so defined), an 
                      amount equal to 40 percent of such allowable 
                      reinsurance costs attributable to that portion of 
                      gross covered prescription drug costs as specified 
                      in paragraph (3) incurred in the coverage year 
                      after such individual has incurred costs that 
                      exceed the annual out-of-pocket threshold 
                      specified in section 1860D-2(b)(4)(B).'';
            (2) in paragraph (2)--
                    (A) by striking ``COSTS.--For purposes'' and 
                inserting ``Costs.--

[[Page 136 STAT. 1880]]

                    ``(A) In general.--Subject to subparagraph (B), for 
                purposes''; and
                    (B) by adding at the end the following new 
                subparagraph:
                    ``(B) Inclusion of manufacturer discounts on 
                applicable drugs. <<NOTE: Definition.>> --For purposes 
                of applying subparagraph (A), the term `allowable 
                reinsurance costs' shall include the portion of the 
                negotiated price (as defined in section 1860D-14C(g)(6)) 
                of an applicable drug (as defined in section 1860D-
                14C(g)(2)) that was paid by a manufacturer under the 
                manufacturer discount program under section 1860D-
                14C.''; and
            (3) in paragraph (3)--
                    (A) in the first sentence, by striking ``For 
                purposes'' and inserting ``Subject to paragraph (2)(B), 
                for purposes''; and
                    (B) in the second sentence, by inserting ``(or, with 
                respect to 2025 and subsequent years, in the case of an 
                applicable drug, as defined in section 1860D-14C(g)(2), 
                by a manufacturer)'' after ``by the individual or under 
                the plan''.

    (c) Manufacturer Discount Program.--
            (1) In general.--Part D of title XVIII of the Social 
        Security Act (42 U.S.C. 1395w-101 through 42 U.S.C. 1395w-153), 
        as amended by section 11102, is amended by inserting after 
        section 1860D-14B the following new sections:
``SEC. 1860D-14C. <<NOTE: 42 USC 1395w-114c.>>  MANUFACTURER 
                              DISCOUNT PROGRAM.

    ``(a) Establishment.--The Secretary shall establish a manufacturer 
discount program (in this section referred to as the `program'). Under 
the program, the Secretary shall enter into agreements described in 
subsection (b) with manufacturers and provide for the performance of the 
duties described in subsection (c).
    ``(b) Terms of Agreement.--
            ``(1) In general.--
                    ``(A) <<NOTE: Effective date.>>  Agreement.--An 
                agreement under this section shall require the 
                manufacturer to provide, in accordance with this 
                section, discounted prices for applicable drugs of the 
                manufacturer that are dispensed to applicable 
                beneficiaries on or after January 1, 2025.
                    ``(B) Clarification.--Nothing in this section shall 
                be construed as affecting--
                          ``(i) the application of a coinsurance of 25 
                      percent of the negotiated price, as applied under 
                      paragraph (2)(A) of section 1860D-2(b), for costs 
                      described in such paragraph; or
                          ``(ii) the application of the copayment amount 
                      described in paragraph (4)(A) of such section, 
                      with respect to costs described in such paragraph.
                    ``(C) <<NOTE: Deadlines.>>  Timing of agreement.--
                          ``(i) Special rule for 2025.--In order for an 
                      agreement with a manufacturer to be in effect 
                      under this section with respect to the period 
                      beginning on January 1, 2025, and ending on 
                      December 31, 2025, the manufacturer shall enter 
                      into such agreement not later than March 1, 2024.

[[Page 136 STAT. 1881]]

                          ``(ii) 2026 and subsequent years.--In order 
                      for an agreement with a manufacturer to be in 
                      effect under this section with respect to plan 
                      year 2026 or a subsequent plan year, the 
                      manufacturer shall enter into such agreement not 
                      later than a calendar quarter or semi-annual 
                      deadline established by the Secretary.
            ``(2) <<NOTE: Determination.>>  Provision of appropriate 
        data.--Each manufacturer with an agreement in effect under this 
        section shall collect and have available appropriate data, as 
        determined by the Secretary, to ensure that it can demonstrate 
        to the Secretary compliance with the requirements under the 
        program.
            ``(3) Compliance with requirements for administration of 
        program.--Each manufacturer with an agreement in effect under 
        this section shall comply with requirements imposed by the 
        Secretary, as applicable, for purposes of administering the 
        program, including any determination under subparagraph (A) of 
        subsection (c)(1) or procedures established under such 
        subsection (c)(1).
            ``(4) Length of agreement.--
                    ``(A) In general.--An agreement under this section 
                shall be effective for an initial period of not less 
                than 12 months and shall be automatically renewed for a 
                period of not less than 1 year unless terminated under 
                subparagraph (B).
                    ``(B) Termination.--
                          ``(i) By the secretary.--The Secretary shall 
                      provide for termination of an agreement under this 
                      section for a knowing and willful violation of the 
                      requirements of the agreement or other good cause 
                      shown. <<NOTE: Time period.>>  Such termination 
                      shall not be effective earlier than 30 days after 
                      the date of notice to the manufacturer of such 
                      termination. <<NOTE: Hearings.>>  The Secretary 
                      shall provide, upon request, a manufacturer with a 
                      hearing concerning such a termination, and such 
                      hearing shall take place prior to the effective 
                      date of the termination with sufficient time for 
                      such effective date to be repealed if the 
                      Secretary determines appropriate.
                          ``(ii) By a manufacturer.--A manufacturer may 
                      terminate an agreement under this section for any 
                      reason. <<NOTE: Effective dates.>>  Any such 
                      termination shall be effective, with respect to a 
                      plan year--
                                    ``(I) if the termination occurs 
                                before January 31 of a plan year, as of 
                                the day after the end of the plan year; 
                                and
                                    ``(II) if the termination occurs on 
                                or after January 31 of a plan year, as 
                                of the day after the end of the 
                                succeeding plan year.
                          ``(iii) Effectiveness of termination.--Any 
                      termination under this subparagraph shall not 
                      affect discounts for applicable drugs of the 
                      manufacturer that are due under the agreement 
                      before the effective date of its termination.
            ``(5) Effective date of agreement.--An agreement under this 
        section shall take effect at the start of a calendar quarter or 
        another date specified by the Secretary.

    ``(c) Duties Described.--The duties described in this subsection are 
the following:

[[Page 136 STAT. 1882]]

            ``(1) Administration of program.--Administering the program, 
        including--
                    ``(A) the determination of the amount of the 
                discounted price of an applicable drug of a 
                manufacturer;
                    ``(B) the establishment of procedures to ensure 
                that, not later than the applicable number of calendar 
                days after the dispensing of an applicable drug by a 
                pharmacy or mail order service, the pharmacy or mail 
                order service is reimbursed for an amount equal to the 
                difference between--
                          ``(i) the negotiated price of the applicable 
                      drug; and
                          ``(ii) the discounted price of the applicable 
                      drug;
                    ``(C) the establishment of procedures to ensure that 
                the discounted price for an applicable drug under this 
                section is applied before any coverage or financial 
                assistance under other health benefit plans or programs 
                that provide coverage or financial assistance for the 
                purchase or provision of prescription drug coverage on 
                behalf of applicable beneficiaries as specified by the 
                Secretary; and
                    ``(D) providing a reasonable dispute resolution 
                mechanism to resolve disagreements between 
                manufacturers, prescription drug plans and MA-PD plans, 
                and the Secretary.
            ``(2) Monitoring compliance.--The Secretary shall monitor 
        compliance by a manufacturer with the terms of an agreement 
        under this section.
            ``(3) Collection of data from prescription drug plans and 
        ma-pd plans.--The Secretary may collect appropriate data from 
        prescription drug plans and MA-PD plans in a timeframe that 
        allows for discounted prices to be provided for applicable drugs 
        under this section.

    ``(d) Administration.--
            ``(1) In general.--Subject to paragraph (2), the Secretary 
        shall provide for the implementation of this section, including 
        the performance of the duties described in subsection (c).
            ``(2) Limitation.--In providing for the implementation of 
        this section, the Secretary shall not receive or distribute any 
        funds of a manufacturer under the program.

    ``(e) Civil Money Penalty.--
            ``(1) <<NOTE: Determination.>>  In general.--A manufacturer 
        that fails to provide discounted prices for applicable drugs of 
        the manufacturer dispensed to applicable beneficiaries in 
        accordance with an agreement in effect under this section shall 
        be subject to a civil money penalty for each such failure in an 
        amount the Secretary determines is equal to the sum of--
                    ``(A) the amount that the manufacturer would have 
                paid with respect to such discounts under the agreement, 
                which will then be used to pay the discounts which the 
                manufacturer had failed to provide; and
                    ``(B) 25 percent of such amount.
            ``(2) Application.--The provisions of section 1128A (other 
        than subsections (a) and (b)) shall apply to a civil money 
        penalty under this subsection in the same manner as such 
        provisions apply to a penalty or proceeding under section 
        1128A(a).

[[Page 136 STAT. 1883]]

    ``(f) Clarification Regarding Availability of Other Covered Part D 
Drugs.--Nothing in this section shall prevent an applicable beneficiary 
from purchasing a covered part D drug that is not an applicable drug 
(including a generic drug or a drug that is not on the formulary of the 
prescription drug plan or MA-PD plan that the applicable beneficiary is 
enrolled in).
    ``(g) Definitions.--In this section:
            ``(1) Applicable beneficiary.--The term `applicable 
        beneficiary' means an individual who, on the date of dispensing 
        a covered part D drug--
                    ``(A) is enrolled in a prescription drug plan or an 
                MA-PD plan;
                    ``(B) is not enrolled in a qualified retiree 
                prescription drug plan; and
                    ``(C) has incurred costs, as determined in 
                accordance with section 1860D-2(b)(4)(C), for covered 
                part D drugs in the year that exceed the annual 
                deductible specified in section 1860D-2(b)(1).
            ``(2) Applicable drug.--The term `applicable drug', with 
        respect to an applicable beneficiary--
                    ``(A) means a covered part D drug--
                          ``(i) approved under a new drug application 
                      under section 505(c) of the Federal Food, Drug, 
                      and Cosmetic Act or, in the case of a biologic 
                      product, licensed under section 351 of the Public 
                      Health Service Act; and
                          ``(ii)(I) if the PDP sponsor of the 
                      prescription drug plan or the MA organization 
                      offering the MA-PD plan uses a formulary, which is 
                      on the formulary of the prescription drug plan or 
                      MA-PD plan that the applicable beneficiary is 
                      enrolled in;
                          ``(II) if the PDP sponsor of the prescription 
                      drug plan or the MA organization offering the MA-
                      PD plan does not use a formulary, for which 
                      benefits are available under the prescription drug 
                      plan or MA-PD plan that the applicable beneficiary 
                      is enrolled in; or
                          ``(III) is provided through an exception or 
                      appeal; and
                    ``(B) does not include a selected drug (as referred 
                to under section 1192(c)) during a price applicability 
                period (as defined in section 1191(b)(2)) with respect 
                to such drug.
            ``(3) Applicable number of calendar days.--The term 
        `applicable number of calendar days' means--
                    ``(A) with respect to claims for reimbursement 
                submitted electronically, 14 days; and
                    ``(B) with respect to claims for reimbursement 
                submitted otherwise, 30 days.
            ``(4) Discounted price.--
                    ``(A) In general.--The term `discounted price' 
                means, subject to subparagraphs (B) and (C), with 
                respect to an applicable drug of a manufacturer 
                dispensed during a year to an applicable beneficiary--
                          ``(i) who has not incurred costs, as 
                      determined in accordance with section 1860D-
                      2(b)(4)(C), for covered part D drugs in the year 
                      that are equal to or exceed the annual out-of-
                      pocket threshold specified in section 1860D-
                      2(b)(4)(B)(i) for the year, 90 percent of the 
                      negotiated price of such drug; and

[[Page 136 STAT. 1884]]

                          ``(ii) who has incurred such costs, as so 
                      determined, in the year that are equal to or 
                      exceed such threshold for the year, 80 percent of 
                      the negotiated price of such drug.
                    ``(B) Phase-in for certain drugs dispensed to lis 
                beneficiaries.--
                          ``(i) In general.--In the case of an 
                      applicable drug of a specified manufacturer (as 
                      defined in clause (ii)) that is marketed as of the 
                      date of enactment of this subparagraph and 
                      dispensed for an applicable beneficiary who is a 
                      subsidy eligible individual (as defined in section 
                      1860D-14(a)(3)), the term `discounted price' means 
                      the specified LIS percent (as defined in clause 
                      (iii)) of the negotiated price of the applicable 
                      drug of the manufacturer.
                          ``(ii) Specified manufacturer.--
                                    ``(I) In general.--In this 
                                subparagraph, subject to subclause (II), 
                                the term `specified manufacturer' means 
                                a manufacturer of an applicable drug for 
                                which, in 2021--
                                            ``(aa) the manufacturer had 
                                        a coverage gap discount 
                                        agreement under section 1860D-
                                        14A;
                                            ``(bb) the total 
                                        expenditures for all of the 
                                        specified drugs of the 
                                        manufacturer covered by such 
                                        agreement or agreements for such 
                                        year and covered under this part 
                                        during such year represented 
                                        less than 1.0 percent of the 
                                        total expenditures under this 
                                        part for all covered Part D 
                                        drugs during such year; and
                                            ``(cc) the total 
                                        expenditures for all of the 
                                        specified drugs of the 
                                        manufacturer that are single 
                                        source drugs and biological 
                                        products for which payment may 
                                        be made under part B during such 
                                        year represented less than 1.0 
                                        percent of the total 
                                        expenditures under part B for 
                                        all drugs or biological products 
                                        for which payment may be made 
                                        under such part during such 
                                        year.
                                    ``(II) Specified drugs.--
                                            ``(aa) In general.--For 
                                        purposes of this clause, the 
                                        term `specified drug' means, 
                                        with respect to a specified 
                                        manufacturer, for 2021, an 
                                        applicable drug that is 
                                        produced, prepared, propagated, 
                                        compounded, converted, or 
                                        processed by the manufacturer.
                                            ``(bb) Aggregation rule.--
                                        All persons treated as a single 
                                        employer under subsection (a) or 
                                        (b) of section 52 of the 
                                        Internal Revenue Code of 1986 
                                        shall be treated as one 
                                        manufacturer for purposes of 
                                        this 
                                        subparagraph. <<NOTE: Determinati
                                        on. Requirement. Attestation.>>  
                                        For purposes of making a 
                                        determination pursuant to the 
                                        previous sentence, an agreement 
                                        under this section shall require 
                                        that a manufacturer provide and 
                                        attest to such information as 
                                        specified by the Secretary as 
                                        necessary.
                                    ``(III) <<NOTE: Time 
                                periods. Effective dates.>>  
                                Limitation.--The term `specified 
                                manufacturer' shall not include a 
                                manufacturer

[[Page 136 STAT. 1885]]

                                described in subclause (I) if such 
                                manufacturer is acquired after 2021 by 
                                another manufacturer that is not a 
                                specified manufacturer, effective at the 
                                beginning of the plan year immediately 
                                following such acquisition or, in the 
                                case of an acquisition before 2025, 
                                effective January 1, 2025.
                          ``(iii) Specified lis percent.--In this 
                      subparagraph, the `specified LIS percent' means, 
                      with respect to a year--
                                    ``(I) for an applicable drug 
                                dispensed for an applicable beneficiary 
                                described in clause (i) who has not 
                                incurred costs, as determined in 
                                accordance with section 1860D-
                                2(b)(4)(C), for covered part D drugs in 
                                the year that are equal to or exceed the 
                                annual out-of-pocket threshold specified 
                                in section 1860D-2(b)(4)(B)(i) for the 
                                year--
                                            ``(aa) for 2025, 99 percent;
                                            ``(bb) for 2026, 98 percent;
                                            ``(cc) for 2027, 95 percent;
                                            ``(dd) for 2028, 92 percent; 
                                        and
                                            ``(ee) for 2029 and each 
                                        subsequent year, 90 percent; and
                                    ``(II) for an applicable drug 
                                dispensed for an applicable beneficiary 
                                described in clause (i) who has incurred 
                                costs, as determined in accordance with 
                                section 1860D-2(b)(4)(C), for covered 
                                part D drugs in the year that are equal 
                                to or exceed the annual out-of-pocket 
                                threshold specified in section 1860D-
                                2(b)(4)(B)(i) for the year--
                                            ``(aa) for 2025, 99 percent;
                                            ``(bb) for 2026, 98 percent;
                                            ``(cc) for 2027, 95 percent;
                                            ``(dd) for 2028, 92 percent;
                                            ``(ee) for 2029, 90 percent;
                                            ``(ff) for 2030, 85 percent; 
                                        and
                                            ``(gg) for 2031 and each 
                                        subsequent year, 80 percent.
                    ``(C) Phase-in for specified small manufacturers.--
                          ``(i) In general.--In the case of an 
                      applicable drug of a specified small manufacturer 
                      (as defined in clause (ii)) that is marketed as of 
                      the date of enactment of this subparagraph and 
                      dispensed for an applicable beneficiary, the term 
                      `discounted price' means the specified small 
                      manufacturer percent (as defined in clause (iii)) 
                      of the negotiated price of the applicable drug of 
                      the manufacturer.
                          ``(ii) Specified small manufacturer.--
                                    ``(I) In general.--In this 
                                subparagraph, subject to subclause 
                                (III), the term `specified small 
                                manufacturer' means a manufacturer of an 
                                applicable drug for which, in 2021--
                                            ``(aa) the manufacturer is a 
                                        specified manufacturer (as 
                                        defined in subparagraph 
                                        (B)(ii)); and

[[Page 136 STAT. 1886]]

                                            ``(bb) the total 
                                        expenditures under part D for 
                                        any one of the specified small 
                                        manufacturer drugs of the 
                                        manufacturer that are covered by 
                                        the agreement or agreements 
                                        under section 1860D-14A of such 
                                        manufacturer for such year and 
                                        covered under this part during 
                                        such year are equal to or more 
                                        than 80 percent of the total 
                                        expenditures under this part for 
                                        all specified small manufacturer 
                                        drugs of the manufacturer that 
                                        are covered by such agreement or 
                                        agreements for such year and 
                                        covered under this part during 
                                        such year.
                                    ``(II) Specified small manufacturer 
                                drugs.--
                                            ``(aa) In general.--For 
                                        purposes of this clause, the 
                                        term `specified small 
                                        manufacturer drugs' means, with 
                                        respect to a specified small 
                                        manufacturer, for 2021, an 
                                        applicable drug that is 
                                        produced, prepared, propagated, 
                                        compounded, converted, or 
                                        processed by the manufacturer.
                                            ``(bb) Aggregation rule.--
                                        All persons treated as a single 
                                        employer under subsection (a) or 
                                        (b) of section 52 of the 
                                        Internal Revenue Code of 1986 
                                        shall be treated as one 
                                        manufacturer for purposes of 
                                        this subparagraph. For purposes 
                                        of making a determination 
                                        pursuant to the previous 
                                        sentence, an agreement under 
                                        this section shall require that 
                                        a manufacturer provide and 
                                        attest to such information as 
                                        specified by the Secretary as 
                                        necessary.
                                    ``(III) Limitation.--The term 
                                `specified small manufacturer' shall not 
                                include a manufacturer described in 
                                subclause (I) if such manufacturer is 
                                acquired after 2021 by another 
                                manufacturer that is not a specified 
                                small manufacturer, effective at the 
                                beginning of the plan year immediately 
                                following such acquisition or, in the 
                                case of an acquisition before 2025, 
                                effective January 1, 2025.
                          ``(iii) Specified small manufacturer 
                      percent.--In this subparagraph, the term 
                      `specified small manufacturer percent' means, with 
                      respect to a year--
                                    ``(I) for an applicable drug 
                                dispensed for an applicable beneficiary 
                                who has not incurred costs, as 
                                determined in accordance with section 
                                1860D-2(b)(4)(C), for covered part D 
                                drugs in the year that are equal to or 
                                exceed the annual out-of-pocket 
                                threshold specified in section 1860D-
                                2(b)(4)(B)(i) for the year--
                                            ``(aa) for 2025, 99 percent;
                                            ``(bb) for 2026, 98 percent;
                                            ``(cc) for 2027, 95 percent;
                                            ``(dd) for 2028, 92 percent; 
                                        and
                                            ``(ee) for 2029 and each 
                                        subsequent year, 90 percent; and
                                    ``(II) for an applicable drug 
                                dispensed for an applicable beneficiary 
                                who has incurred costs, as

[[Page 136 STAT. 1887]]

                                determined in accordance with section 
                                1860D-2(b)(4)(C), for covered part D 
                                drugs in the year that are equal to or 
                                exceed the annual out-of-pocket 
                                threshold specified in section 1860D-
                                2(b)(4)(B)(i) for the year--
                                            ``(aa) for 2025, 99 percent;
                                            ``(bb) for 2026, 98 percent;
                                            ``(cc) for 2027, 95 percent;
                                            ``(dd) for 2028, 92 percent;
                                            ``(ee) for 2029, 90 percent;
                                            ``(ff) for 2030, 85 percent; 
                                        and
                                            ``(gg) for 2031 and each 
                                        subsequent year, 80 percent.
                    ``(D) Total expenditures.--For purposes of this 
                paragraph, the term `total expenditures' includes, in 
                the case of expenditures with respect to part D, the 
                total gross covered prescription drug costs as defined 
                in section 1860D-15(b)(3). The term `total expenditures' 
                excludes, in the case of expenditures with respect to 
                part B, expenditures for a drug or biological that are 
                bundled or packaged into the payment for another 
                service.
                    ``(E) Special case for certain claims.--
                          ``(i) Claims spanning deductible.--In the case 
                      where the entire amount of the negotiated price of 
                      an individual claim for an applicable drug with 
                      respect to an applicable beneficiary does not fall 
                      above the annual deductible specified in section 
                      1860D-2(b)(1) for the year, the manufacturer of 
                      the applicable drug shall provide the discounted 
                      price under this section on only the portion of 
                      the negotiated price of the applicable drug that 
                      falls above such annual deductible.
                          ``(ii) Claims spanning out-of-pocket 
                      threshold.--In the case where the entire amount of 
                      the negotiated price of an individual claim for an 
                      applicable drug with respect to an applicable 
                      beneficiary does not fall entirely below or 
                      entirely above the annual out-of-pocket threshold 
                      specified in section 1860D-2(b)(4)(B)(i) for the 
                      year, the manufacturer of the applicable drug 
                      shall provide the discounted price--
                                    ``(I) in accordance with 
                                subparagraph (A)(i) on the portion of 
                                the negotiated price of the applicable 
                                drug that falls below such threshold; 
                                and
                                    ``(II) in accordance with 
                                subparagraph (A)(ii) on the portion of 
                                such price of such drug that falls at or 
                                above such threshold.
            ``(5) Manufacturer.--The term `manufacturer' means any 
        entity which is engaged in the production, preparation, 
        propagation, compounding, conversion, or processing of 
        prescription drug products, either directly or indirectly by 
        extraction from substances of natural origin, or independently 
        by means of chemical synthesis, or by a combination of 
        extraction and chemical synthesis. Such term does not include a 
        wholesale distributor of drugs or a retail pharmacy licensed 
        under State law.
            ``(6) Negotiated price.--The term `negotiated price' has the 
        meaning given such term for purposes of section 1860D-

[[Page 136 STAT. 1888]]

        2(d)(1)(B), and, with respect to an applicable drug, such 
        negotiated price shall include any dispensing fee and, if 
        applicable, any vaccine administration fee for the applicable 
        drug.
            ``(7) Qualified retiree prescription drug plan.--The term 
        `qualified retiree prescription drug plan' has the meaning given 
        such term in section 1860D-22(a)(2).
``SEC. 1860D-14D. <<NOTE: 42 USC 1395w-114d.>>  SELECTED DRUG 
                              SUBSIDY PROGRAM.

    ``With respect to covered part D drugs that would be applicable 
drugs (as defined in section 1860D-14C(g)(2)) but for the application of 
subparagraph (B) of such section, the Secretary shall provide a process 
whereby, in the case of an applicable beneficiary (as defined in section 
1860D-14C(g)(1)) who, with respect to a year, is enrolled in a 
prescription drug plan or is enrolled in an MA-PD plan, has not incurred 
costs that are equal to or exceed the annual out-of-pocket threshold 
specified in section 1860D-2(b)(4)(B)(i), and is dispensed such a drug, 
the Secretary (periodically and on a timely basis) provides the PDP 
sponsor or the MA organization offering the plan, a subsidy with respect 
to such drug that is equal to 10 percent of the negotiated price (as 
defined in section 1860D-14C(g)(6)) of such drug.''.
            (2) Sunset of medicare coverage gap discount program.--
        Section 1860D-14A of the Social Security Act (42 U.S.C. 1395w-
        114a) is amended--
                    (A) in subsection (a), in the first sentence, by 
                striking ``The Secretary'' and inserting ``Subject to 
                subsection (h), the Secretary''; and
                    (B) by adding at the end the following new 
                subsection:

    ``(h) Sunset of Program.--
            ``(1) In general.--The program shall not apply with respect 
        to applicable drugs dispensed on or after January 1, 2025, and, 
        subject to paragraph (2), agreements under this section shall be 
        terminated as of such date.
            ``(2) Continued application for applicable drugs dispensed 
        prior to sunset.--The provisions of this section (including all 
        responsibilities and duties) shall continue to apply on and 
        after January 1, 2025, with respect to applicable drugs 
        dispensed prior to such date.''.
            (3) Selected drug subsidy payments from medicare 
        prescription drug account.--Section 1860D-16(b)(1) of the Social 
        Security Act (42 U.S.C. 1395w-116(b)(1)) is amended--
                    (A) in subparagraph (C), by striking ``and'' at the 
                end;
                    (B) in subparagraph (D), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(E) payments under section 1860D-14D (relating to 
                selected drug subsidy payments).''.

    (d) Medicare Part D Premium Stabilization.--
            (1) 2024 through 2029.--Section 1860D-13 of the Social 
        Security Act (42 U.S.C. 1395w-113) is amended--
                    (A) in subsection (a)--
                          (i) in paragraph (1)(A), by inserting ``or (8) 
                      (as applicable)'' after ``paragraph (2)'';
                          (ii) in paragraph (2), in the matter preceding 
                      subparagraph (A), by striking ``The base'' and 
                      inserting ``Subject to paragraph (8), the base'';

[[Page 136 STAT. 1889]]

                          (iii) in paragraph (7)--
                                    (I) in subparagraph (B)(ii), by 
                                inserting ``or (8) (as applicable)'' 
                                after ``paragraph (2)''; and
                                    (II) in subparagraph (E)(i), by 
                                inserting ``or (8) (as applicable)'' 
                                after ``paragraph (2)''; and
                          (iv) by adding at the end the following new 
                      paragraph:
            ``(8) <<NOTE: Time period.>>  Premium stabilization.--
                    ``(A) In general.--The base beneficiary premium 
                under this paragraph for a prescription drug plan for a 
                month in 2024 through 2029 shall be computed as follows:
                          ``(i) 2024.--The base beneficiary premium for 
                      a month in 2024 shall be equal to the lesser of--
                                    ``(I) the base beneficiary premium 
                                computed under paragraph (2) for a month 
                                in 2023 increased by 6 percent; or
                                    ``(II) the base beneficiary premium 
                                computed under paragraph (2) for a month 
                                in 2024 that would have applied if this 
                                paragraph had not been enacted.
                          ``(ii) 2025.--The base beneficiary premium for 
                      a month in 2025 shall be equal to the lesser of--
                                    ``(I) the base beneficiary premium 
                                computed under clause (i) for a month in 
                                2024 increased by 6 percent; or
                                    ``(II) the base beneficiary premium 
                                computed under paragraph (2) for a month 
                                in 2025 that would have applied if this 
                                paragraph had not been enacted.
                          ``(iii) 2026.--The base beneficiary premium 
                      for a month in 2026 shall be equal to the lesser 
                      of--
                                    ``(I) the base beneficiary premium 
                                computed under clause (ii) for a month 
                                in 2025 increased by 6 percent; or
                                    ``(II) the base beneficiary premium 
                                computed under paragraph (2) for a month 
                                in 2026 that would have applied if this 
                                paragraph had not been enacted.
                          ``(iv) 2027.--The base beneficiary premium for 
                      a month in 2027 shall be equal to the lesser of--
                                    ``(I) the base beneficiary premium 
                                computed under clause (iii) for a month 
                                in 2026 increased by 6 percent; or
                                    ``(II) the base beneficiary premium 
                                computed under paragraph (2) for a month 
                                in 2027 that would have applied if this 
                                paragraph had not been enacted.
                          ``(v) 2028.--The base beneficiary premium for 
                      a month in 2028 shall be equal to the lesser of--
                                    ``(I) the base beneficiary premium 
                                computed under clause (iv) for a month 
                                in 2027 increased by 6 percent; or
                                    ``(II) the base beneficiary premium 
                                computed under paragraph (2) for a month 
                                in 2028 that would have applied if this 
                                paragraph had not been enacted.

[[Page 136 STAT. 1890]]

                          ``(vi) 2029.--The base beneficiary premium for 
                      a month in 2029 shall be equal to the lesser of--
                                    ``(I) the base beneficiary premium 
                                computed under clause (v) for a month in 
                                2028 increased by 6 percent; or
                                    ``(II) the base beneficiary premium 
                                computed under paragraph (2) for a month 
                                in 2029 that would have applied if this 
                                paragraph had not been enacted.
                    ``(B) Clarification regarding 2030 and subsequent 
                years.--The base beneficiary premium for a month in 2030 
                or a subsequent year shall be computed under paragraph 
                (2) without regard to this paragraph.''; and
                    (B) in subsection (b)(3)(A)(ii), by striking 
                ``subsection (a)(2)'' and inserting ``paragraph (2) or 
                (8) of subsection (a) (as applicable)''.
            (2) Adjustment to beneficiary premium percentage for 2030 
        and subsequent years.--Section 1860D-13(a) of the Social 
        Security Act (42 U.S.C. 1395w-113(a)), as amended by paragraph 
        (1), is amended--
                    (A) in paragraph (3)(A), by inserting ``(or, for 
                2030 and each subsequent year, the percent specified 
                under paragraph (9))'' after ``25.5 percent''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(9) <<NOTE: Time periods.>>  Percent specified.--
                    ``(A) <<NOTE: Determination.>>  In general.--Subject 
                to subparagraph (B), for purposes of paragraph (3)(A), 
                the percent specified under this paragraph for 2030 and 
                each subsequent year is the percent that the Secretary 
                determines is necessary to ensure that the base 
                beneficiary premium computed under paragraph (2) for a 
                month in 2030 is equal to the lesser of--
                          ``(i) the base beneficiary premium computed 
                      under paragraph (8)(A)(vi) for a month in 2029 
                      increased by 6 percent; or
                          ``(ii) the base beneficiary premium computed 
                      under paragraph (2) for a month in 2030 that would 
                      have applied if this paragraph had not been 
                      enacted.
                    ``(B) Floor.--The percent specified under 
                subparagraph (A) may not be less than 20 percent.''.
            (3) Conforming amendments.--
                    (A) Section 1854(b)(2)(B) of the Social Security Act 
                42 U.S.C. 1395w-24(b)(2)(B)) is amended by striking 
                ``section 1860D-13(a)(2)'' and inserting ``paragraph (2) 
                or (8) (as applicable) of section 1860D-13(a)''.
                    (B) Section 1860D-11(g)(6) of the Social Security 
                Act (42 U.S.C. 1395w-111(g)(6)) is amended by inserting 
                ``(or, for 2030 and each subsequent year, the percent 
                specified under section 1860D-13(a)(9))'' after ``25.5 
                percent''.
                    (C) Section 1860D-13(a)(7)(B)(i) of the Social 
                Security Act (42 U.S.C. 1395w-113(a)(7)(B)(i)) is 
                amended--
                          (i) in subclause (I), by inserting ``(or, for 
                      2030 and each subsequent year, the percent 
                      specified under paragraph (9))'' after ``25.5 
                      percent''; and
                          (ii) in subclause (II), by inserting ``(or, 
                      for 2030 and each subsequent year, the percent 
                      specified under paragraph (9))'' after ``25.5 
                      percent''.

[[Page 136 STAT. 1891]]

                    (D) Section 1860D-15(a) of the Social Security Act 
                (42 U.S.C. 1395w-115(a)) is amended--
                          (i) in the matter preceding paragraph (1), by 
                      inserting ``(or, for each of 2024 through 2029, 
                      the percent applicable as a result of the 
                      application of section 1860D-13(a)(8), or, for 
                      2030 and each subsequent year, 100 percent minus 
                      the percent specified under section 1860D-
                      13(a)(9))'' after ``74.5 percent''; and
                          (ii) in paragraph (1)(B), by striking 
                      ``paragraph (2) of section 1860D-13(a)'' and 
                      inserting ``paragraph (2) or (8) of section 1860D-
                      13(a) (as applicable)''.

    (e) <<NOTE: Time periods.>>  Conforming Amendments.--
            (1) Section 1860D-2 of the Social Security Act (42 U.S.C. 
        1395w-102) is amended--
                    (A) in subsection (a)(2)(A)(i)(I), by striking ``, 
                or an increase in the initial'' and inserting ``or, for 
                a year preceding 2025, an increase in the initial'';
                    (B) in subsection (c)(1)(C)--
                          (i) in the subparagraph heading, by striking 
                      ``at initial coverage limit''; and
                          (ii) by inserting ``for a year preceding 2025 
                      or the annual out-of-pocket threshold specified in 
                      subsection (b)(4)(B) for the year for 2025 and 
                      each subsequent year'' after ``subsection (b)(3) 
                      for the year'' each place it appears; and
                    (C) in subsection (d)(1)(A), by striking ``or an 
                initial'' and inserting ``or, for a year preceding 2025, 
                an initial''.
            (2) Section 1860D-4(a)(4)(B)(i) of the Social Security Act 
        (42 U.S.C. 1395w-104(a)(4)(B)(i)) is amended by striking ``the 
        initial'' and inserting ``for a year preceding 2025, the 
        initial''.
            (3) Section 1860D-14(a) of the Social Security Act (42 
        U.S.C. 1395w-114(a)) is amended--
                    (A) in paragraph (1)--
                          (i) in subparagraph (C), by striking ``The 
                      continuation'' and inserting ``For a year 
                      preceding 2025, the continuation'';
                          (ii) in subparagraph (D)(iii), by striking 
                      ``1860D-2(b)(4)(A)(i)(I)'' and inserting ``1860D-
                      2(b)(4)(A)(i)(I)(aa)''; and
                          (iii) in subparagraph (E), by striking ``The 
                      elimination'' and inserting ``For a year preceding 
                      2024, the elimination''; and
                    (B) in paragraph (2)(E), by striking ``1860D-
                2(b)(4)(A)(i)(I)'' and inserting ``1860D-
                2(b)(4)(A)(i)(I)(aa)''.
            (4) Section 1860D-21(d)(7) of the Social Security Act (42 
        U.S.C. 1395w-131(d)(7)) is amended by striking ``section 1860D-
        2(b)(4)(B)(i)'' and inserting ``section 1860D-2(b)(4)(C)(i)''.
            (5) Section 1860D-22(a)(2)(A) of the Social Security Act (42 
        U.S.C. 1395w-132(a)(2)(A)) is amended--
                    (A) by striking ``the value of any discount'' and 
                inserting the following: ``the value of--
                          ``(i) for years prior to 2025, any discount'';
                    (B) in clause (i), as inserted by subparagraph (A) 
                of this paragraph, by striking the period at the end and 
                inserting ``; and''; and
                    (C) by adding at the end the following new clause:

[[Page 136 STAT. 1892]]

                          ``(ii) for 2025 and each subsequent year, any 
                      discount provided pursuant to section 1860D-
                      14C.''.
            (6) Section 1860D-41(a)(6) of the Social Security Act (42 
        U.S.C. 1395w-151(a)(6)) is amended--
                    (A) by inserting ``for a year before 2025'' after 
                ``1860D-2(b)(3)''; and
                    (B) by inserting ``for such year'' before the 
                period.
            (7) Section 1860D-43 of the Social Security Act (42 U.S.C. 
        1395w-153) is amended--
                    (A) in subsection (a)--
                          (i) by striking paragraph (1) and inserting 
                      the following:
            ``(1) participate in--
                    ``(A) for 2011 through 2024, the Medicare coverage 
                gap discount program under section 1860D-14A; and
                    ``(B) for 2025 and each subsequent year, the 
                manufacturer discount program under section 1860D-
                14C;'';
                          (ii) by striking paragraph (2) and inserting 
                      the following:
            ``(2) have entered into and have in effect--
                    ``(A) for 2011 through 2024, an agreement described 
                in subsection (b) of section 1860D-14A with the 
                Secretary; and
                    ``(B) for 2025 and each subsequent year, an 
                agreement described in subsection (b) of section 1860D-
                14C with the Secretary; and''; and
                          (iii) in paragraph (3), by striking ``such 
                      section'' and inserting ``section 1860D-14A''; and
                    (B) by striking subsection (b) and inserting the 
                following:

    ``(b) <<NOTE: Applicability.>>  Effective Date.--Paragraphs (1)(A), 
(2)(A), and (3) of subsection (a) shall apply to covered part D drugs 
dispensed under this part on or after January 1, 2011, and before 
January 1, 2025, and paragraphs (1)(B) and (2)(B) of such subsection 
shall apply to covered part D drugs dispensed under this part on or 
after January 1, 2025.''.
            (8) Section 1927 of the Social Security Act (42 U.S.C. 
        1396r-8) is amended--
                    (A) in subsection (c)(1)(C)(i)(VI), by inserting 
                before the period at the end the following: ``or under 
                the manufacturer discount program under section 1860D-
                14C''; and
                    (B) in subsection (k)(1)(B)(i)(V), by inserting 
                before the period at the end the following: ``or under 
                section 1860D-14C''.

    (f) <<NOTE: 42 USC 1395w-102 note.>>  Implementation for 2024 
Through 2026.--The Secretary shall implement this section, including the 
amendments made by this section, for 2024, 2025, and 2026 by program 
instruction or other forms of program guidance.

    (g) <<NOTE: Time periods.>>  Funding.--In addition to amounts 
otherwise available, there are appropriated to the Centers for Medicare 
& Medicaid Services, out of any money in the Treasury not otherwise 
appropriated, $341,000,000 for fiscal year 2022, including $20,000,000 
and $65,000,000 to carry out the provisions of, including the amendments 
made by, this section in fiscal years 2022 and 2023, respectively, and 
$32,000,000 to carry out the provisions of, including the amendments 
made by, this section in each of fiscal years 2024 through 2031, to 
remain available until expended.

[[Page 136 STAT. 1893]]

SEC. 11202. MAXIMUM MONTHLY CAP ON COST-SHARING PAYMENTS UNDER 
                            PRESCRIPTION DRUG PLANS AND MA-PD 
                            PLANS.

    (a) In General.--Section 1860D-2(b) of the Social Security Act (42 
U.S.C. 1395w-102(b)) is amended--
            (1) in paragraph (2)--
                    (A) in subparagraph (A), by striking ``and (D)'' and 
                inserting ``, (D), and (E)''; and
                    (B) by adding at the end the following new 
                subparagraph:
                    ``(E) Maximum monthly cap on cost-sharing 
                payments.--
                          ``(i) <<NOTE: Effective date.>>  In general.--
                      For plan years beginning on or after January 1, 
                      2025, each PDP sponsor offering a prescription 
                      drug plan and each MA organization offering an MA-
                      PD plan shall provide to any enrollee of such 
                      plan, including an enrollee who is a subsidy 
                      eligible individual (as defined in paragraph (3) 
                      of section 1860D-14(a)), the option to elect with 
                      respect to a plan year to pay cost-sharing under 
                      the plan in monthly amounts that are capped in 
                      accordance with this subparagraph.
                          ``(ii) Determination of maximum monthly cap.--
                      For each month in the plan year for which an 
                      enrollee in a prescription drug plan or an MA-PD 
                      plan has made an election pursuant to clause (i), 
                      the PDP sponsor or MA organization shall determine 
                      a maximum monthly cap (as defined in clause (iv)) 
                      for such enrollee.
                          ``(iii) Beneficiary monthly payments.--With 
                      respect to an enrollee who has made an election 
                      pursuant to clause (i), for each month described 
                      in clause (ii), the PDP sponsor or MA organization 
                      shall bill such enrollee an amount (not to exceed 
                      the maximum monthly cap) for the out-of-pocket 
                      costs of such enrollee in such month.
                          ``(iv) Maximum monthly cap defined.--In this 
                      subparagraph, the term `maximum monthly cap' 
                      means, with respect to an enrollee--
                                    ``(I) for the first month for which 
                                the enrollee has made an election 
                                pursuant to clause (i), an amount 
                                determined by calculating--
                                            ``(aa) the annual out-of-
                                        pocket threshold specified in 
                                        paragraph (4)(B) minus the 
                                        incurred costs of the enrollee 
                                        as described in paragraph 
                                        (4)(C); divided by
                                            ``(bb) the number of months 
                                        remaining in the plan year; and
                                    ``(II) for a subsequent month, an 
                                amount determined by calculating--
                                            ``(aa) the sum of any 
                                        remaining out-of-pocket costs 
                                        owed by the enrollee from a 
                                        previous month that have not yet 
                                        been billed to the enrollee and 
                                        any additional out-of-pocket 
                                        costs incurred by the enrollee; 
                                        divided by
                                            ``(bb) the number of months 
                                        remaining in the plan year.

[[Page 136 STAT. 1894]]

                          ``(v) <<NOTE: Applicability.>>  Additional 
                      requirements.--The following requirements shall 
                      apply with respect to the option to make an 
                      election pursuant to clause (i) under this 
                      subparagraph:
                                    ``(I) Secretarial 
                                responsibilities.--The Secretary shall 
                                provide information to part D eligible 
                                individuals on the option to make such 
                                election through educational materials, 
                                including through the notices provided 
                                under section 1804(a).
                                    ``(II) Timing of election.--An 
                                enrollee in a prescription drug plan or 
                                an MA-PD plan may make such an 
                                election--
                                            ``(aa) prior to the 
                                        beginning of the plan year; or
                                            ``(bb) in any month during 
                                        the plan year.
                                    ``(III) Pdp sponsor and ma 
                                organization responsibilities.--Each PDP 
                                sponsor offering a prescription drug 
                                plan or MA organization offering an MA-
                                PD plan--
                                            ``(aa) may not limit the 
                                        option for an enrollee to make 
                                        such an election to certain 
                                        covered part D drugs;
                                            
                                        ``(bb) <<NOTE: Notification.>>  
                                        shall, prior to the plan year, 
                                        notify prospective enrollees of 
                                        the option to make such an 
                                        election in promotional 
                                        materials;
                                            ``(cc) shall include 
                                        information on such option in 
                                        enrollee educational materials;
                                            
                                        ``(dd) <<NOTE: Notification.>>  
                                        shall have in place a mechanism 
                                        to notify a pharmacy during the 
                                        plan year when an enrollee 
                                        incurs out-of-pocket costs with 
                                        respect to covered part D drugs 
                                        that make it likely the enrollee 
                                        may benefit from making such an 
                                        election;
                                            ``(ee) shall provide that a 
                                        pharmacy, after receiving a 
                                        notification described in item 
                                        (dd) with respect to an 
                                        enrollee, informs the enrollee 
                                        of such notification;
                                            ``(ff) shall ensure that 
                                        such an election by an enrollee 
                                        has no effect on the amount paid 
                                        to pharmacies (or the timing of 
                                        such payments) with respect to 
                                        covered part D drugs dispensed 
                                        to the enrollee; and
                                            ``(gg) shall have in place a 
                                        financial reconciliation process 
                                        to correct inaccuracies in 
                                        payments made by an enrollee 
                                        under this subparagraph with 
                                        respect to covered part D drugs 
                                        during the plan year.
                                    ``(IV) Failure to pay amount 
                                billed.--If an enrollee fails to pay the 
                                amount billed for a month as required 
                                under this subparagraph--
                                            ``(aa) the election of the 
                                        enrollee pursuant to clause (i) 
                                        shall be terminated and the 
                                        enrollee shall pay the cost-
                                        sharing otherwise applicable for 
                                        any covered part D drugs 
                                        subsequently dispensed to the 
                                        enrollee up to the annual out-
                                        of-pocket threshold specified in 
                                        paragraph (4)(B); and

[[Page 136 STAT. 1895]]

                                            ``(bb) the PDP sponsor or MA 
                                        organization may preclude the 
                                        enrollee from making an election 
                                        pursuant to clause (i) in a 
                                        subsequent plan year.
                                    ``(V) Clarification regarding past 
                                due amounts.--Nothing in this 
                                subparagraph shall be construed as 
                                prohibiting a PDP sponsor or an MA 
                                organization from billing an enrollee 
                                for an amount owed under this 
                                subparagraph.
                                    ``(VI) Treatment of unsettled 
                                balances.--Any unsettled balances with 
                                respect to amounts owed under this 
                                subparagraph shall be treated as plan 
                                losses and the Secretary shall not be 
                                liable for any such balances outside of 
                                those assumed as losses estimated in 
                                plan bids.''; and
            (2) in paragraph (4)--
                    (A) in subparagraph (C), by striking ``subparagraph 
                (E)'' and inserting ``subparagraph (E) or subparagraph 
                (F)''; and
                    (B) by adding at the end the following new 
                subparagraph:
                    ``(F) Inclusion of costs paid under maximum monthly 
                cap option.--In applying subparagraph (A), with respect 
                to an enrollee who has made an election pursuant to 
                clause (i) of paragraph (2)(E), costs shall be treated 
                as incurred if such costs are paid by a PDP sponsor or 
                an MA organization under the option provided under such 
                paragraph.''.

    (b) Application to Alternative Prescription Drug Coverage.--Section 
1860D-2(c) of the Social Security Act (42 U.S.C. 1395w-102(c)) is 
amended by adding at the end the following new paragraph:
            ``(4) Same maximum monthly cap on cost-sharing.--The maximum 
        monthly cap on cost-sharing payments shall apply to coverage 
        with respect to an enrollee who has made an election pursuant to 
        clause (i) of subsection (b)(2)(E) under the option provided 
        under such subsection.''.

    (c) <<NOTE: 42 USC 1395w-102 note.>>  Implementation for 2025.--The 
Secretary shall implement this section, including the amendments made by 
this section, for 2025 by program instruction or other forms of program 
guidance.

    (d) <<NOTE: Time period.>>  Funding.--In addition to amounts 
otherwise available, there are appropriated to the Centers for Medicare 
& Medicaid Services, out of any money in the Treasury not otherwise 
appropriated, $10,000,000 for fiscal year 2023, to remain available 
until expended, to carry out the provisions of, including the amendments 
made by, this section.

[[Page 136 STAT. 1896]]

 PART 4--CONTINUED DELAY OF IMPLEMENTATION OF PRESCRIPTION DRUG REBATE 
                                  RULE

SEC. 11301. <<NOTE: 42 USC 1320a-7b note.>>  EXTENSION OF 
                            MORATORIUM ON IMPLEMENTATION OF RULE 
                            RELATING TO ELIMINATING THE ANTI-
                            KICKBACK STATUTE SAFE HARBOR 
                            PROTECTION FOR PRESCRIPTION DRUG 
                            REBATES.

    The <<NOTE: Effective date.>>  Secretary of Health and Human 
Services shall not, prior to January 1, 2032, implement, administer, or 
enforce the provisions of the final rule published by the Office of the 
Inspector General of the Department of Health and Human Services on 
November 30, 2020, and titled ``Fraud and Abuse; Removal of Safe Harbor 
Protection for Rebates Involving Prescription Pharmaceuticals and 
Creation of New Safe Harbor Protection for Certain Point-of-Sale 
Reductions in Price on Prescription Pharmaceuticals and Certain Pharmacy 
Benefit Manager Service Fees'' (85 Fed. Reg. 76666).

                          PART 5--MISCELLANEOUS

SEC. 11401. COVERAGE OF ADULT VACCINES RECOMMENDED BY THE ADVISORY 
                            COMMITTEE ON IMMUNIZATION PRACTICES 
                            UNDER MEDICARE PART D.

    (a) Ensuring Treatment of Cost-sharing and Deductible Is Consistent 
With Treatment of Vaccines Under Medicare Part B.--Section 1860D-2 of 
the Social Security Act (42 U.S.C. 1395w-102), as amended by sections 
11201 and 11202, is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1)(A), by striking ``The 
                coverage'' and inserting ``Subject to paragraph (8), the 
                coverage'';
                    (B) in paragraph (2)--
                          (i) in subparagraph (A), by inserting ``and 
                      paragraph (8)'' after ``and (E)'';
                          (ii) in subparagraph (C)(i), in the matter 
                      preceding subclause (I), by striking ``paragraph 
                      (4)'' and inserting ``paragraphs (4) and (8)''; 
                      and
                          (iii) in subparagraph (D)(i), in the matter 
                      preceding subclause (I), by striking ``paragraph 
                      (4)'' and inserting ``paragraphs (4) and (8)'';
                    (C) in paragraph (3)(A), in the matter preceding 
                clause (i), by striking ``and (4)'' and inserting ``(4), 
                and (8)'';
                    (D) in paragraph (4)(A)(i), by striking ``The 
                coverage'' and inserting ``Subject to paragraph (8), the 
                coverage''; and
                    (E) by adding at the end the following new 
                paragraph:
            ``(8) Treatment of cost-sharing for adult vaccines 
        recommended by the advisory committee on immunization practices 
        consistent with treatment of vaccines under part b.--
                    ``(A) <<NOTE: Effective date.>>  In general.--For 
                plan years beginning on or after January 1, 2023, with 
                respect to an adult vaccine recommended by the Advisory 
                Committee on Immunization Practices (as defined in 
                subparagraph (B))--
                          ``(i) the deductible under paragraph (1) shall 
                      not apply; and

[[Page 136 STAT. 1897]]

                          ``(ii) there shall be no coinsurance or other 
                      cost-sharing under this part with respect to such 
                      vaccine.
                    ``(B) Adult vaccines recommended by the advisory 
                committee on immunization 
                practices. <<NOTE: Definition.>> --For purposes of this 
                paragraph, the term `adult vaccine recommended by the 
                Advisory Committee on Immunization Practices' means a 
                covered part D drug that is a vaccine licensed under 
                section 351 of the Public Health Service Act for use by 
                adult populations and administered in accordance with 
                recommendations of the Advisory Committee on 
                Immunization Practices of the Centers for Disease 
                Control and Prevention.''; and
            (2) in subsection (c), by adding at the end the following 
        new paragraph:
            ``(5) Treatment of cost-sharing for adult vaccines 
        recommended by the advisory committee on immunization 
        practices.--The coverage is in accordance with subsection 
        (b)(8).''.

    (b) Conforming Amendments to Cost-sharing for Low-income 
Individuals.--Section 1860D-14(a) of the Social Security Act (42 U.S.C. 
1395w-114(a)), as amended by section 11201, is amended--
            (1) in paragraph (1)(D), in each of clauses (ii) and (iii), 
        by striking ``In the case'' and inserting ``Subject to paragraph 
        (6), in the case'';
            (2) in paragraph (2)--
                    (A) in subparagraph (B), by striking ``A reduction'' 
                and inserting ``Subject to section 1860D-2(b)(8), a 
                reduction'';
                    (B) in subparagraph (D), by striking ``The 
                substitution'' and inserting ``Subject to paragraph (6), 
                the substitution''; and
                    (C) in subparagraph (E), by striking ``subsection 
                (c)'' and inserting ``paragraph (6) of this subsection 
                and subsection (c)''; and
            (3) by adding at the end the following new paragraph:
            ``(6) No application of cost-sharing or deductible for adult 
        vaccines recommended by the advisory committee on immunization 
        practices. <<NOTE: Effective date.>> --For plan years beginning 
        on or after January 1, 2023, with respect to an adult vaccine 
        recommended by the Advisory Committee on Immunization Practices 
        (as defined in section 1860D-2(b)(8)(B))--
                    ``(A) the deductible under section 1860D-2(b)(1) 
                shall not apply; and
                    ``(B) there shall be no cost-sharing under this 
                section with respect to such vaccine.''.

    (c) Temporary Retrospective Subsidy.--
            (1) In general.--Section 1860D-15 of the Social Security Act 
        (42 U.S.C. 1395w-115) is amended by adding at the end the 
        following new subsection:

    ``(h) Temporary Retrospective Subsidy for Reduction in Cost-sharing 
and Deductible for Adult Vaccines Recommended by the Advisory Committee 
on Immunization Practices During 2023.--
            ``(1) In general.--In addition to amounts otherwise payable 
        under this section to a PDP sponsor of a prescription drug plan 
        or an MA organization offering an MA-PD plan, for plan year 
        2023, the Secretary shall provide the PDP sponsor

[[Page 136 STAT. 1898]]

        or MA organization offering the plan subsidies in an amount 
        equal to the aggregate reduction in cost-sharing and deductible 
        by reason of the application of section 1860D-2(b)(8) for 
        individuals under the plan during the year.
            ``(2) <<NOTE: Deadline.>>  Timing.--The Secretary shall 
        provide a subsidy under paragraph (1), as applicable, not later 
        than 18 months following the end of the applicable plan year.''.
            (2) Treatment as incurred costs.--Section 1860D-
        2(b)(4)(C)(iii)(I) of the Social Security Act (42 U.S.C. 1395w-
        102(b)(4)(C)(iii)(I)), as amended by section 11201(a)(3)(C), is 
        amended--
                    (A) in item (cc), by striking ``or'' at the end; and
                    (B) by adding at the end the following new item:
                                            ``(dd) under section 1860D-
                                        15(h); or''.

    (d) <<NOTE: 42 USC 1395w-102 note.>>  Rule of Construction.--Nothing 
in this section shall be construed as limiting coverage under part D of 
title XVIII of the Social Security Act for vaccines that are not 
recommended by the Advisory Committee on Immunization Practices.

    (e) <<NOTE: 42 USC 1395w-102 note.>>  Implementation for 2023 
Through 2025.--The Secretary shall implement this section, including the 
amendments made by this section, for 2023, 2024, and 2025, by program 
instruction or other forms of program guidance.
SEC. 11402. PAYMENT FOR BIOSIMILAR BIOLOGICAL PRODUCTS DURING 
                            INITIAL PERIOD.

    Section 1847A(c)(4) of the Social Security Act (42 U.S.C. 1395w-
3a(c)(4)) is amended--
            (1) in each of subparagraphs (A) and (B), by redesignating 
        clauses (i) and (ii) as subclauses (I) and (II), respectively, 
        and moving such subclauses 2 ems to the right;
            (2) by redesignating subparagraphs (A) and (B) as clauses 
        (i) and (ii) and moving such clauses 2 ems to the right;
            (3) by striking ``unavailable.--In the case'' and inserting 
        ``unavailable.--
                    ``(A) In general.--Subject to subparagraph (B), in 
                the case''; and
            (4) by adding at the end the following new subparagraph:
                    ``(B) Limitation on payment amount for biosimilar 
                biological products during initial 
                period. <<NOTE: Effective date.>> --In the case of a 
                biosimilar biological product furnished on or after July 
                1, 2024, during the initial period described in 
                subparagraph (A) with respect to the biosimilar 
                biological product, the amount payable under this 
                section for the biosimilar biological product is the 
                lesser of the following:
                          ``(i) The amount determined under clause (ii) 
                      of such subparagraph for the biosimilar biological 
                      product.
                          ``(ii) The amount determined under subsection 
                      (b)(1)(B) for the reference biological product.''.
SEC. 11403. TEMPORARY INCREASE IN MEDICARE PART B PAYMENT FOR 
                            CERTAIN BIOSIMILAR BIOLOGICAL 
                            PRODUCTS.

    Section 1847A(b)(8) of the Social Security Act (42 U.S.C. 1395w-
3a(b)(8)) is amended--
            (1) by redesignating subparagraphs (A) and (B) as clauses 
        (i) and (ii), respectively, and moving the margin of each such 
        redesignated clause 2 ems to the right;

[[Page 136 STAT. 1899]]

            (2) by striking ``product.--The amount'' and inserting the 
        following: ``product.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                amount''; and
            (3) by adding at the end the following new subparagraph:
                    ``(B) <<NOTE: Time periods.>>  Temporary payment 
                increase.--
                          ``(i) In general.--In the case of a qualifying 
                      biosimilar biological product that is furnished 
                      during the applicable 5-year period for such 
                      product, the amount specified in this paragraph 
                      for such product with respect to such period is 
                      the sum determined under subparagraph (A), except 
                      that clause (ii) of such subparagraph shall be 
                      applied by substituting `8 percent' for `6 
                      percent'.
                          ``(ii) Applicable 5-year period.--For purposes 
                      of clause (i), the applicable 5-year period for a 
                      qualifying biosimilar biological product is--
                                    ``(I) <<NOTE: Effective date.>>  in 
                                the case of such a product for which 
                                payment was made under this paragraph as 
                                of September 30, 2022, the 5-year period 
                                beginning on October 1, 2022; and
                                    ``(II) in the case of such a product 
                                for which payment is first made under 
                                this paragraph during a calendar quarter 
                                during the period beginning October 1, 
                                2022, and ending December 31, 2027, the 
                                5-year period beginning on the first day 
                                of such calendar quarter during which 
                                such payment is first made.
                          ``(iii) Qualifying biosimilar biological 
                      product defined.--For purposes of this 
                      subparagraph, the term `qualifying biosimilar 
                      biological product' means a biosimilar biological 
                      product described in paragraph (1)(C) with respect 
                      to which--
                                    ``(I) in the case of a product 
                                described in clause (ii)(I), the average 
                                sales price under paragraph (8)(A)(i) 
                                for a calendar quarter during the 5-year 
                                period described in such clause is not 
                                more than the average sales price under 
                                paragraph (4)(A) for such quarter for 
                                the reference biological product; and
                                    ``(II) in the case of a product 
                                described in clause (ii)(II), the 
                                average sales price under paragraph 
                                (8)(A)(i) for a calendar quarter during 
                                the 5-year period described in such 
                                clause is not more than the average 
                                sales price under paragraph (4)(A) for 
                                such quarter for the reference 
                                biological product.''.
SEC. 11404. <<NOTE: Effective date.>>  EXPANDING ELIGIBILITY FOR 
                            LOW-INCOME SUBSIDIES UNDER PART D OF 
                            THE MEDICARE PROGRAM.

    Section 1860D-14(a) of the Social Security Act (42 U.S.C. 1395w-
114(a)), as amended by sections 11201 and 11401, is amended--
            (1) in the subsection heading, by striking ``Individuals'' 
        and all that follows through ``Line'' and inserting ``Certain 
        Individuals'';
            (2) in paragraph (1)--

[[Page 136 STAT. 1900]]

                    (A) by striking the paragraph heading and inserting 
                ``Individuals with certain low incomes''; and
                    (B) in the matter preceding subparagraph (A)--
                          (i) by inserting ``(or, with respect to a plan 
                      year beginning on or after January 1, 2024, 150 
                      percent)'' after ``135 percent''; and
                          (ii) by inserting ``(or, with respect to a 
                      plan year beginning on or after January 1, 2024, 
                      paragraph (3)(E))'' after ``the resources 
                      requirement described in paragraph (3)(D)''; and
            (3) in paragraph (2)--
                    (A) by striking the paragraph heading and inserting 
                ``Other low-income individuals''; and
                    (B) in the matter preceding subparagraph (A), by 
                striking ``In the case of a subsidy'' and inserting 
                ``With respect to a plan year beginning before January 
                1, 2024, in the case of a subsidy''.
SEC. 11405. IMPROVING ACCESS TO ADULT VACCINES UNDER MEDICAID AND 
                            CHIP.

    (a) Medicaid.--
            (1) Requiring coverage of adult vaccinations.--
                    (A) In general.--Section 1902(a)(10)(A) of the 
                Social Security Act (42 U.S.C. 1396a(a)(10)(A)) is 
                amended in the matter preceding clause (i) by inserting 
                ``(13)(B),'' after ``(5),''.
                    (B) Medically needy.--Section 1902(a)(10)(C)(iv) of 
                such Act (42 U.S.C. 1396a(a)(10)(C)(iv)) is amended by 
                inserting ``, (13)(B),'' after ``(5)''.
            (2) No cost sharing for vaccinations.--
                    (A) General cost-sharing limitations.--Section 1916 
                of the Social Security Act (42 U.S.C. 1396o) is 
                amended--
                          (i) in subsection (a)(2)--
                                    (I) in subparagraph (G), by 
                                inserting a comma after ``State plan'';
                                    (II) in subparagraph (H), by 
                                striking ``; or'' and inserting a comma;
                                    (III) in subparagraph (I), by 
                                striking ``; and'' and inserting ``, 
                                or''; and
                                    (IV) by adding at the end the 
                                following new subparagraph:
                    ``(J) vaccines described in section 1905(a)(13)(B) 
                and the administration of such vaccines; and''; and
                          (ii) in subsection (b)(2)--
                                    (I) in subparagraph (G), by 
                                inserting a comma after ``State plan'';
                                    (II) in subparagraph (H), by 
                                striking ``; or'' and inserting a comma;
                                    (III) in subparagraph (I), by 
                                striking ``; and'' and inserting ``, 
                                or''; and
                                    (IV) by adding at the end the 
                                following new subparagraph:
                    ``(J) vaccines described in section 1905(a)(13)(B) 
                and the administration of such vaccines; and''.
                    (B) Application to alternative cost sharing.--
                Section 1916A(b)(3)(B) of the Social Security Act (42 
                U.S.C.

[[Page 136 STAT. 1901]]

                1396o-1(b)(3)(B)) is amended by adding at the end the 
                following new clause:
                          ``(xiv) Vaccines described in section 
                      1905(a)(13)(B) and the administration of such 
                      vaccines.''.
            (3) Increased fmap for adult vaccines and their 
        administration.--Section 1905(b) of the Social Security Act (42 
        U.S.C. 1396d(b)) is amended--
                    (A) by striking ``and (5)'' and inserting ``(5)'';
                    (B) by striking ``services and vaccines described in 
                subparagraphs (A) and (B) of subsection (a)(13), and 
                prohibits cost-sharing for such services and vaccines'' 
                and inserting ``services described in subsection 
                (a)(13)(A), and prohibits cost-sharing for such 
                services'';
                    (C) by striking ``medical assistance for such 
                services and vaccines'' and inserting ``medical 
                assistance for such services''; and
                    (D) <<NOTE: Time periods.>>  by inserting ``, and 
                (6) during the first 8 fiscal quarters beginning on or 
                after the effective date of this clause, in the case of 
                a State which, as of the date of enactment of the Act 
                titled `An Act to provide for reconciliation pursuant to 
                title II of S. Con. Res. 14', provides medical 
                assistance for vaccines described in subsection 
                (a)(13)(B) and their administration and prohibits cost-
                sharing for such vaccines, the Federal medical 
                assistance percentage, as determined under this 
                subsection and subsection (y), shall be increased by 1 
                percentage point with respect to medical assistance for 
                such vaccines and their administration'' before the 
                first period.

    (b) CHIP.--
            (1) Requiring coverage of adult vaccinations.--Section 
        2103(c) of the Social Security Act (42 U.S.C. 1397cc(c)) is 
        amended by adding at the end the following paragraph:
            ``(12) Required coverage of approved, recommended adult 
        vaccines and their administration.--Regardless of the type of 
        coverage elected by a State under subsection (a), if the State 
        child health plan or a waiver of such plan provides child health 
        assistance or pregnancy-related assistance (as defined in 
        section 2112) to an individual who is 19 years of age or older, 
        such assistance shall include coverage of vaccines described in 
        section 1905(a)(13)(B) and their administration.''.
            (2) No cost-sharing for vaccinations.--Section 2103(e)(2) of 
        such Act (42 U.S.C. 1397cc(e)(2)) is amended by inserting 
        ``vaccines described in subsection (c)(12) (and the 
        administration of such vaccines),'' after ``in vitro diagnostic 
        products described in subsection (c)(10) (and administration of 
        such products),''.

    (c) <<NOTE: Applicability. 42 USC 1396a note.>>  Effective Date.--
The amendments made by this section take effect on the 1st day of the 
1st fiscal quarter that begins on or after the date that is 1 year after 
the date of enactment of this Act and shall apply to expenditures made 
under a State plan or waiver of such plan under title XIX of the Social 
Security Act (42 U.S.C. 1396 through 1396w-6) or under a State child 
health plan or waiver of such plan under title XXI of such Act (42 
U.S.C. 1397aa through 1397mm) on or after such effective date.

[[Page 136 STAT. 1902]]

SEC. 11406. APPROPRIATE COST-SHARING FOR COVERED INSULIN PRODUCTS 
                            UNDER MEDICARE PART D.

    (a) In General.--Section 1860D-2 of the Social Security Act (42 
U.S.C. 1395w-102), as amended by sections 11201, 11202, and 11401, is 
amended--
            (1) in subsection (b)--
                    (A) in paragraph (1)(A), by striking ``paragraph 
                (8)'' and inserting ``paragraphs (8) and (9)'';
                    (B) in paragraph (2)--
                          (i) in subparagraph (A), by striking 
                      ``paragraph (8)'' and inserting ``paragraphs (8) 
                      and (9)'';
                          (ii) in subparagraph (C)(i), in the matter 
                      preceding subclause (I), by striking ``and (8)'' 
                      and inserting ``, (8), and (9)''; and
                          (iii) in subparagraph (D)(i), in the matter 
                      preceding subclause (I), by striking ``and (8)'' 
                      and inserting ``, (8), and (9)'';
                    (C) in paragraph (3)(A), in the matter preceding 
                clause (i), by striking ``and (8)'' and inserting ``(8), 
                and (9)'';
                    (D) in paragraph (4)(A)(i), by striking ``paragraph 
                (8)'' and inserting ``paragraphs (8) and (9)''; and
                    (E) by adding at the end the following new 
                paragraph:
            ``(9) Treatment of cost-sharing for covered insulin 
        products.--
                    ``(A) <<NOTE: Time periods.>>  No application of 
                deductible.--For plan year 2023 and subsequent plan 
                years, the deductible under paragraph (1) shall not 
                apply with respect to any covered insulin product.
                    ``(B) Application of cost-sharing.--
                          ``(i) Plan years 2023 and 2024.--For plan 
                      years 2023 and 2024, the coverage provides 
                      benefits for any covered insulin product, 
                      regardless of whether an individual has reached 
                      the initial coverage limit under paragraph (3) or 
                      the out-of-pocket threshold under paragraph (4), 
                      with cost-sharing for a month's supply that does 
                      not exceed the applicable copayment amount.
                          ``(ii) Plan year 2025 and subsequent plan 
                      years.--For a plan year beginning on or after 
                      January 1, 2025, the coverage provides benefits 
                      for any covered insulin product, prior to an 
                      individual reaching the out-of-pocket threshold 
                      under paragraph (4), with cost-sharing for a 
                      month's supply that does not exceed the applicable 
                      copayment amount.
                    ``(C) <<NOTE: Definition.>>  Covered insulin 
                product.--In this paragraph, the term `covered insulin 
                product' means an insulin product that is a covered part 
                D drug covered under the prescription drug plan or MA-PD 
                plan that is approved under section 505 of the Federal 
                Food, Drug, and Cosmetic Act or licensed under section 
                351 of the Public Health Service Act and marketed 
                pursuant to such approval or licensure, including any 
                covered insulin product that has been deemed to be 
                licensed under section 351 of the Public Health Service 
                Act pursuant to section 7002(e)(4) of the Biologics 
                Price Competition and Innovation Act of 2009 and 
                marketed pursuant to such section.
                    ``(D) <<NOTE: Definition.>>  Applicable copayment 
                amount.--In this paragraph, the term `applicable 
                copayment amount' means, with

[[Page 136 STAT. 1903]]

                respect to a covered insulin product under a 
                prescription drug plan or an MA-PD plan dispensed--
                          ``(i) during plan years 2023, 2024, and 2025, 
                      $35; and
                          ``(ii) during plan year 2026 and each 
                      subsequent plan year, the lesser of--
                                    ``(I) $35;
                                    ``(II) an amount equal to 25 percent 
                                of the maximum fair price established 
                                for the covered insulin product in 
                                accordance with part E of title XI; or
                                    ``(III) an amount equal to 25 
                                percent of the negotiated price of the 
                                covered insulin product under the 
                                prescription drug plan or MA-PD plan.
                    ``(E) <<NOTE: Reimbursement. Deadline.>>  Special 
                rule for first 3 months of 2023.--With respect to a 
                month's supply of a covered insulin product dispensed 
                during the period beginning on January 1, 2023, and 
                ending on March 31, 2023, a PDP sponsor offering a 
                prescription drug plan or an MA organization offering an 
                MA-PD plan shall reimburse an enrollee within 30 days 
                for any cost-sharing paid by such enrollee that exceeds 
                the cost-sharing applied by the prescription drug plan 
                or MA-PD plan under subparagraph (B)(i) at the point-of-
                sale for such month's supply.''; and
            (2) in subsection (c), by adding at the end the following 
        new paragraph:
            ``(6) Treatment of cost-sharing for covered insulin 
        products.--The coverage is provided in accordance with 
        subsection (b)(9).''.

    (b) Conforming Amendments to Cost-sharing for Low-income 
Individuals.--Section 1860D-14(a) of the Social Security Act (42 U.S.C. 
1395w-114(a)), as amended by sections 11201, 11401, and 11404, is 
amended--
            (1) <<NOTE: Time periods.>>  in paragraph (1)--
                    (A) in subparagraph (D)(iii), by adding at the end 
                the following new sentence: ``For plan year 2023 and 
                subsequent plan years, the copayment amount applicable 
                under the preceding sentence to a month's supply of a 
                covered insulin product (as defined in section 1860D-
                2(b)(9)(C)) dispensed to the individual may not exceed 
                the applicable copayment amount for the product under 
                the prescription drug plan or MA-PD plan in which the 
                individual is enrolled.''; and
                    (B) in subparagraph (E), by inserting the following 
                before the period at the end: ``or under section 1860D-
                2(b)(9) in the case of a covered insulin product (as 
                defined in subparagraph (C) of such section)''; and
            (2) in paragraph (2)--
                    (A) in subparagraph (B), by striking ``section 
                1860D-2(b)(8)'' and inserting ``paragraphs (8) and (9) 
                of section 1860D-2(b)'';
                    (B) in subparagraph (D), by adding at the end the 
                following new sentence: ``For plan year 2023, the amount 
                of the coinsurance applicable under the preceding 
                sentence to a month's supply of a covered insulin 
                product (as defined in section 1860D-2(b)(9)(C)) 
                dispensed to the individual may not exceed the 
                applicable copayment amount for the

[[Page 136 STAT. 1904]]

                product under the prescription drug plan or MA-PD plan 
                in which the individual is enrolled.''; and
                    (C) in subparagraph (E), by adding at the end the 
                following new sentence: ``For plan year 2023, the amount 
                of the copayment or coinsurance applicable under the 
                preceding sentence to a month's supply of a covered 
                insulin product (as defined in section 1860D-2(b)(9)(C)) 
                dispensed to the individual may not exceed the 
                applicable copayment amount for the product under the 
                prescription drug plan or MA-PD plan in which the 
                individual is enrolled.''.

    (c) Temporary Retrospective Subsidy.--Section 1860D-15(h) of the 
Social Security Act (42 U.S.C. 1395w-115(h)), as added by section 
11401(c), is amended--
            (1) in the subsection heading, by inserting ``and Insulin'' 
        after ``Practices''; and
            (2) in paragraph (1), by striking ``section 1860D-2(b)(8)'' 
        and inserting ``paragraph (8) or (9) of section 1860D-2(b)''.

    (d) <<NOTE: 42 USC 1395w-102 note.>>  Implementation for 2023 
Through 2025.--The Secretary shall implement this section for plan years 
2023, 2024, and 2025 by program instruction or other forms of program 
guidance.

    (e) Funding.--In addition to amounts otherwise available, there is 
appropriated to the Centers for Medicare & Medicaid Services, out of any 
money in the Treasury not otherwise appropriated, $1,500,000 for fiscal 
year 2022, to remain available until expended, to carry out the 
provisions of, including the amendments made by, this section.
SEC. 11407. <<NOTE: Effective dates.>>  LIMITATION ON MONTHLY 
                            COINSURANCE AND ADJUSTMENTS TO 
                            SUPPLIER PAYMENT UNDER MEDICARE PART B 
                            FOR INSULIN FURNISHED THROUGH DURABLE 
                            MEDICAL EQUIPMENT.

    (a) Waiver of Deductible.--The first sentence of section 1833(b) of 
the Social Security Act (42 U.S.C. 1395l(b)) is amended--
            (1) by striking ``and (12)'' and inserting ``(12)''; and
            (2) by inserting before the period the following: ``, and 
        (13) such deductible shall not apply with respect to insulin 
        furnished on or after July 1, 2023, through an item of durable 
        medical equipment covered under section 1861(n).''.

    (b) Coinsurance.--
            (1) In general.--Section 1833(a)(1)(S) of the Social 
        Security Act (42 U.S.C. 1395l(a)(1)(S)) is amended--
                    (A) by inserting ``(i) except as provided in clause 
                (ii),'' after ``(S)''; and
                    (B) by inserting after ``or 1847B),'' the following: 
                ``and (ii) with respect to insulin furnished on or after 
                July 1, 2023, through an item of durable medical 
                equipment covered under section 1861(n), the amounts 
                paid shall be, subject to the fourth sentence of this 
                subsection, 80 percent of the payment amount established 
                under section 1847A (or section 1847B, if applicable) 
                for such insulin,''.
            (2) Adjustment to supplier payments; limitation on monthly 
        coinsurance.--Section 1833(a) of the Social Security Act (42 
        U.S.C. 1395l(a)) is amended, in the flush matter at the end, by 
        adding at the end the following new sentence: ``The Secretary 
        shall make such adjustments as may be necessary to the amounts 
        paid as specified under paragraph (1)(S)(ii) for insulin 
        furnished on or after July 1, 2023, through

[[Page 136 STAT. 1905]]

        an item of durable medical equipment covered under section 
        1861(n), such that the amount of coinsurance payable by an 
        individual enrolled under this part for a month's supply of such 
        insulin does not exceed $35.''.

    (c) <<NOTE: 42 USC 1395l note.>>  Implementation.--The Secretary of 
Health and Human Services shall implement this section for 2023 by 
program instruction or other forms of program guidance.
SEC. 11408. SAFE HARBOR FOR ABSENCE OF DEDUCTIBLE FOR INSULIN.

    (a) In General.--Paragraph (2) of section 223(c) of the Internal 
Revenue Code of 1986 <<NOTE: 26 USC 223.>>  is amended by adding at the 
end the following new subparagraph:
                    ``(G) Safe harbor for absence of deductible for 
                certain insulin products.--
                          ``(i) In general.--A plan shall not fail to be 
                      treated as a high deductible health plan by reason 
                      of failing to have a deductible for selected 
                      insulin products.
                          ``(ii) <<NOTE: Definitions.>>  Selected 
                      insulin products.--For purposes of this 
                      subparagraph--
                                    ``(I) In general.--The term 
                                `selected insulin products' means any 
                                dosage form (such as vial, pump, or 
                                inhaler dosage forms) of any different 
                                type (such as rapid-acting, short-
                                acting, intermediate-acting, long-
                                acting, ultra long-acting, and premixed) 
                                of insulin.
                                    ``(II) Insulin.--The term `insulin' 
                                means insulin that is licensed under 
                                subsection (a) or (k) of section 351 of 
                                the Public Health Service Act (42 U.S.C. 
                                262) and continues to be marketed under 
                                such section, including any insulin 
                                product that has been deemed to be 
                                licensed under section 351(a) of such 
                                Act pursuant to section 7002(e)(4) of 
                                the Biologics Price Competition and 
                                Innovation Act of 2009 (Public Law 111-
                                148) and continues to be marketed 
                                pursuant to such licensure.''.

    (b) <<NOTE: 26 USC 223 note.>>  Effective Date.--The amendment made 
by this section shall apply to plan years beginning after December 31, 
2022.

                Subtitle C--Affordable Care Act Subsidies

SEC. 12001. IMPROVE AFFORDABILITY AND REDUCE PREMIUM COSTS OF 
                            HEALTH INSURANCE FOR CONSUMERS.

    (a) In General.--Clause (iii) of section 36B(b)(3)(A) of the 
Internal Revenue Code of 1986 is amended--
            (1) by striking ``in 2021 or 2022'' and inserting ``after 
        December 31, 2020, and before January 1, 2026'', and
            (2) by striking ``2021 and 2022'' in the heading and 
        inserting ``2021 through 2025''.

    (b) Extension Through 2025 of Rule to Allow Credit to Taxpayers 
Whose Household Income Exceeds 400 Percent of the Poverty Line.--Section 
36B(c)(1)(E) of the Internal Revenue Code of 1986 is amended--
            (1) by striking ``in 2021 or 2022'' and inserting ``after 
        December 31, 2020, and before January 1, 2026'', and

[[Page 136 STAT. 1906]]

            (2) by striking ``2021 and 2022'' in the heading and 
        inserting ``2021 through 2025''.

    (c) <<NOTE: 26 USC 36B note.>>  Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after December 
31, 2022.

                       Subtitle D--Energy Security

SEC. 13001. AMENDMENT OF 1986 CODE.

    Except as otherwise expressly provided, whenever in this subtitle an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be considered to 
be made to a section or other provision of the Internal Revenue Code of 
1986.

         PART 1--CLEAN ELECTRICITY AND REDUCING CARBON EMISSIONS

SEC. 13101. EXTENSION AND MODIFICATION OF CREDIT FOR ELECTRICITY 
                            PRODUCED FROM CERTAIN RENEWABLE 
                            RESOURCES.

    (a) In General.--The following provisions of section 
45(d) <<NOTE: 26 USC 45.>>  are each amended by striking ``January 1, 
2022'' each place it appears and inserting ``January 1, 2025'':
            (1) Paragraph (2)(A).
            (2) Paragraph (3)(A).
            (3) Paragraph (6).
            (4) Paragraph (7).
            (5) Paragraph (9).
            (6) Paragraph (11)(B).

    (b) Base Credit Amount.--Section 45 is amended--
            (1) in subsection (a)(1), by striking ``1.5 cents'' and 
        inserting ``0.3 cents'', and
            (2) in subsection (b)(2), by striking ``1.5 cent'' and 
        inserting ``0.3 cent''.

    (c) Application of Extension to Geothermal and Solar.--Section 
45(d)(4) is amended by striking ``and which'' and all that follows 
through ``January 1, 2022'' and inserting ``and the construction of 
which begins before January 1, 2025''.
    (d) Extension of Election to Treat Qualified Facilities as Energy 
Property.--Section 48(a)(5)(C)(ii) is amended by striking ``January 1, 
2022'' and inserting ``January 1, 2025''.
    (e) Application of Extension to Wind Facilities.--
            (1) In general.--Section 45(d)(1) is amended by striking 
        ``January 1, 2022'' and inserting ``January 1, 2025''.
            (2) Application of phaseout percentage.--
                    (A) Renewable electricity production credit.--
                Section 45(b)(5) is amended by inserting ``which is 
                placed in service before January 1, 2022'' after ``using 
                wind to produce electricity''.
                    (B) Energy credit.--Section 48(a)(5)(E) is amended 
                by inserting ``placed in service before January 1, 2022, 
                and'' before ``treated as energy property''.
            (3) Qualified offshore wind facilities under energy 
        credit.--Section 48(a)(5)(F)(i) is amended by striking 
        ``offshore wind facility'' and all that follows and inserting 
        the following: ``offshore wind facility, subparagraph (E) shall 
        not apply.''.

[[Page 136 STAT. 1907]]

    (f) Wage and Apprenticeship Requirements.--Section 45(b) <<NOTE: 26 
USC 45.>>  is amended by adding at the end the following new paragraphs:
            ``(6) Increased credit amount for qualified facilities.--
                    ``(A) In general.--In the case of any qualified 
                facility which satisfies the requirements of 
                subparagraph (B), the amount of the credit determined 
                under subsection (a) (determined after the application 
                of paragraphs (1) through (5) and without regard to this 
                paragraph) shall be equal to such amount multiplied by 
                5.
                    ``(B) Qualified facility requirements.--A qualified 
                facility meets the requirements of this subparagraph if 
                it is one of the following:
                          ``(i) A facility with a maximum net output of 
                      less than 1 megawatt (as measured in alternating 
                      current).
                          ``(ii) <<NOTE: Time 
                      period. Publication. Guidelines.>>  A facility the 
                      construction of which begins prior to the date 
                      that is 60 days after the Secretary publishes 
                      guidance with respect to the requirements of 
                      paragraphs (7)(A) and (8).
                          ``(iii) A facility which satisfies the 
                      requirements of paragraphs (7)(A) and (8).
            ``(7) Prevailing wage requirements.--
                    ``(A) In general.--The requirements described in 
                this subparagraph with respect to any qualified facility 
                are that the taxpayer shall ensure that any laborers and 
                mechanics employed by the taxpayer or any contractor or 
                subcontractor in--
                          ``(i) the construction of such facility, and
                          ``(ii) <<NOTE: Determination.>>  with respect 
                      to any taxable year, for any portion of such 
                      taxable year which is within the period described 
                      in subsection (a)(2)(A)(ii), the alteration or 
                      repair of such facility,
                shall be paid wages at rates not less than the 
                prevailing rates for construction, alteration, or repair 
                of a similar character in the locality in which such 
                facility is located as most recently determined by the 
                Secretary of Labor, in accordance with subchapter IV of 
                chapter 31 of title 40, United States 
                Code. <<NOTE: Applicability.>>  For purposes of 
                determining an increased credit amount under paragraph 
                (6)(A) for a taxable year, the requirement under clause 
                (ii) is applied to such taxable year in which the 
                alteration or repair of the qualified facility occurs.''
                    ``(B) Correction and penalty related to failure to 
                satisfy wage requirements.--
                          ``(i) In general.--In the case of any taxpayer 
                      which fails to satisfy the requirement under 
                      subparagraph (A) with respect to the construction 
                      of any qualified facility or with respect to the 
                      alteration or repair of a facility in any year 
                      during the period described in subparagraph 
                      (A)(ii), such taxpayer shall be deemed to have 
                      satisfied such requirement under such subparagraph 
                      with respect to such facility for any year if, 
                      with respect to any laborer or mechanic who was 
                      paid wages at a rate below the rate described in 
                      such subparagraph for any period during such year, 
                      such taxpayer--

[[Page 136 STAT. 1908]]

                                    ``(I) makes payment to such laborer 
                                or mechanic in an amount equal to the 
                                sum of--
                                            ``(aa) an amount equal to 
                                        the difference between--
                                                ``(AA) the amount of 
                                            wages paid to such laborer 
                                            or mechanic during such 
                                            period, and
                                                ``(BB) the amount of 
                                            wages required to be paid to 
                                            such laborer or mechanic 
                                            pursuant to such 
                                            subparagraph during such 
                                            period, plus
                                            ``(bb) interest on the 
                                        amount determined under item 
                                        (aa) at the underpayment rate 
                                        established under section 6621 
                                        (determined by substituting `6 
                                        percentage points' for `3 
                                        percentage points' in subsection 
                                        (a)(2) of such section) for the 
                                        period described in such item, 
                                        and
                                    ``(II) makes payment to the 
                                Secretary of a penalty in an amount 
                                equal to the product of--
                                            ``(aa) $5,000, multiplied by
                                            ``(bb) the total number of 
                                        laborers and mechanics who were 
                                        paid wages at a rate below the 
                                        rate described in subparagraph 
                                        (A) for any period during such 
                                        year.
                          ``(ii) Deficiency procedures not to apply.--
                      Subchapter B of chapter 63 (relating to deficiency 
                      procedures for income, estate, gift, and certain 
                      excise taxes) shall not apply with respect to the 
                      assessment or collection of any penalty imposed by 
                      this paragraph.
                          
                      ``(iii) <<NOTE: Determination. Applicability.>>  
                      Intentional disregard.--If the Secretary 
                      determines that any failure described in clause 
                      (i) is due to intentional disregard of the 
                      requirements under subparagraph (A), such clause 
                      shall be applied--
                                    ``(I) in subclause (I), by 
                                substituting `three times the sum' for 
                                `the sum', and
                                    ``(II) in subclause (II), by 
                                substituting `$10,000' for `5,000' in 
                                item (aa) thereof.
                          ``(iv) <<NOTE: Regulations. Deadline.>>  
                      Limitation on period for payment.--Pursuant to 
                      rules issued by the Secretary, in the case of a 
                      final determination by the Secretary with respect 
                      to any failure by the taxpayer to satisfy the 
                      requirement under subparagraph (A), subparagraph 
                      (B)(i) shall not apply unless the payments 
                      described in subclauses (I) and (II) of such 
                      subparagraph are made by the taxpayer on or before 
                      the date which is 180 days after the date of such 
                      determination.
            ``(8) Apprenticeship requirements.--The requirements 
        described in this paragraph with respect to the construction of 
        any qualified facility are as follows:
                    ``(A) Labor hours.--
                          ``(i) Percentage of total labor hours.--
                      Taxpayers shall ensure that, with respect to the 
                      construction of any qualified facility, not less 
                      than the applicable percentage of the total labor 
                      hours of the construction, alteration, or repair 
                      work (including such work performed by any 
                      contractor or subcontractor)

[[Page 136 STAT. 1909]]

                      with respect to such facility shall, subject to 
                      subparagraph (B), be performed by qualified 
                      apprentices.
                          ``(ii) <<NOTE: Effective dates.>>  Applicable 
                      percentage.--For purposes of clause (i), the 
                      applicable percentage shall be--
                                    ``(I) in the case of a qualified 
                                facility the construction of which 
                                begins before January 1, 2023, 10 
                                percent,
                                    ``(II) in the case of a qualified 
                                facility the construction of which 
                                begins after December 31, 2022, and 
                                before January 1, 2024, 12.5 percent, 
                                and
                                    ``(III) in the case of a qualified 
                                facility the construction of which 
                                begins after December 31, 2023, 15 
                                percent.
                    ``(B) Apprentice to journeyworker ratio.--The 
                requirement under subparagraph (A)(i) shall be subject 
                to any applicable requirements for apprentice-to-
                journeyworker ratios of the Department of Labor or the 
                applicable State apprenticeship agency.
                    ``(C) Participation.--Each taxpayer, contractor, or 
                subcontractor who employs 4 or more individuals to 
                perform construction, alteration, or repair work with 
                respect to the construction of a qualified facility 
                shall employ 1 or more qualified apprentices to perform 
                such work.
                    ``(D) Exception.--
                          ``(i) In general.--A taxpayer shall not be 
                      treated as failing to satisfy the requirements of 
                      this paragraph if such taxpayer--
                                    ``(I) satisfies the requirements 
                                described in clause (ii), or
                                    ``(II) subject to clause (iii), in 
                                the case of any failure by the taxpayer 
                                to satisfy the requirement under 
                                subparagraphs (A) and (C) with respect 
                                to the construction, alteration, or 
                                repair work on any qualified facility to 
                                which subclause (I) does not apply, 
                                makes payment to the Secretary of a 
                                penalty in an amount equal to the 
                                product of--
                                            ``(aa) $50, multiplied by
                                            ``(bb) the total labor hours 
                                        for which the requirement 
                                        described in such subparagraph 
                                        was not satisfied with respect 
                                        to the construction, alteration, 
                                        or repair work on such qualified 
                                        facility.
                          ``(ii) Good faith effort.--For purposes of 
                      clause (i), a taxpayer shall be deemed to have 
                      satisfied the requirements under this paragraph 
                      with respect to a qualified facility if such 
                      taxpayer has requested qualified apprentices from 
                      a registered apprenticeship program, as defined in 
                      section 3131(e)(3)(B), and--
                                    ``(I) such request has been denied, 
                                provided that such denial is not the 
                                result of a refusal by the taxpayer or 
                                any contractors or subcontractors 
                                engaged in the performance of 
                                construction, alteration, or repair work 
                                with respect to such qualified facility 
                                to comply with the established standards 
                                and requirements of the registered 
                                apprenticeship program, or

[[Page 136 STAT. 1910]]

                                    ``(II) <<NOTE: Deadline.>>  the 
                                registered apprenticeship program fails 
                                to respond to such request within 5 
                                business days after the date on which 
                                such registered apprenticeship program 
                                received such request.
                          ``(iii) <<NOTE: Determination.>>  Intentional 
                      disregard.--If the Secretary determines that any 
                      failure described in subclause (i)(II) is due to 
                      intentional disregard of the requirements under 
                      subparagraphs (A) and (C), subclause (i)(II) shall 
                      be applied by substituting `$500' for `$50' in 
                      item (aa) thereof.
                    ``(E) Definitions.--For purposes of this paragraph--
                          ``(i) Labor hours.--The term `labor hours'--
                                    ``(I) means the total number of 
                                hours devoted to the performance of 
                                construction, alteration, or repair work 
                                by any individual employed by the 
                                taxpayer or by any contractor or 
                                subcontractor, and
                                    ``(II) excludes any hours worked 
                                by--
                                            ``(aa) foremen,
                                            ``(bb) superintendents,
                                            ``(cc) owners, or
                                            ``(dd) persons employed in a 
                                        bona fide executive, 
                                        administrative, or professional 
                                        capacity (within the meaning of 
                                        those terms in part 541 of title 
                                        29, Code of Federal 
                                        Regulations).
                          ``(ii) Qualified apprentice.--The term 
                      `qualified apprentice' means an individual who is 
                      employed by the taxpayer or by any contractor or 
                      subcontractor and who is participating in a 
                      registered apprenticeship program, as defined in 
                      section 3131(e)(3)(B).
            ``(9) <<NOTE: Determination.>>  Regulations and guidance.--
        The Secretary shall issue such regulations or other guidance as 
        the Secretary determines necessary to carry out the purposes of 
        this subsection, including regulations or other guidance which 
        provides for requirements for recordkeeping or information 
        reporting for purposes of administering the requirements of this 
        subsection.''.

    (g) Domestic Content, Phaseout, and Energy Communities.--Section 
45(b), as amended by subsection (f), <<NOTE: 26 USC 45.>>  is amended--
            (1) by redesignating paragraph (9) as paragraph (12), and
            (2) by inserting after paragraph (8) the following:
            ``(9) Domestic content bonus credit amount.--
                    ``(A) In general.--In the case of any qualified 
                facility which satisfies the requirement under 
                subparagraph (B)(i), the amount of the credit determined 
                under subsection (a) (determined after the application 
                of paragraphs (1) through (8)) shall be increased by an 
                amount equal to 10 percent of the amount so determined.
                    ``(B) Requirement.--
                          ``(i) <<NOTE: Certification.>>  In general.--
                      The requirement described in this clause is 
                      satisfied with respect to any qualified facility 
                      if the taxpayer certifies to the Secretary (at 
                      such time, and in such form and manner, as the 
                      Secretary may prescribe) that any steel, iron, or 
                      manufactured product which is a component of such 
                      facility (upon completion of construction) was 
                      produced in the

[[Page 136 STAT. 1911]]

                      United States (as determined under section 661 of 
                      title 49, Code of Federal Regulations).
                          ``(ii) <<NOTE: Applicability.>>  Steel and 
                      iron.--In the case of steel or iron, clause (i) 
                      shall be applied in a manner consistent with 
                      section 661.5 of title 49, Code of Federal 
                      Regulations.
                          ``(iii) Manufactured product.--For purposes of 
                      clause (i), the manufactured products which are 
                      components of a qualified facility upon completion 
                      of construction shall be deemed to have been 
                      produced in the United States if not less than the 
                      adjusted percentage (as determined under 
                      subparagraph (C)) of the total costs of all such 
                      manufactured products of such facility are 
                      attributable to manufactured products (including 
                      components) which are mined, produced, or 
                      manufactured in the United States.
                    ``(C) Adjusted percentage.--
                          ``(i) In general.--Subject to subclause (ii), 
                      for purposes of subparagraph (B)(iii), the 
                      adjusted percentage shall be 40 percent.
                          ``(ii) Offshore wind facility.--For purposes 
                      of subparagraph (B)(iii), in the case of a 
                      qualified facility which is an offshore wind 
                      facility, the adjusted percentage shall be 20 
                      percent.
            ``(10) Phaseout for elective payment.--
                    ``(A) In general.--In the case of a taxpayer making 
                an election under section 6417 with respect to a credit 
                under this section, the amount of such credit shall be 
                replaced with--
                          ``(i) the value of such credit (determined 
                      without regard to this paragraph), multiplied by
                          ``(ii) the applicable percentage.
                    ``(B) 100 percent applicable percentage for certain 
                qualified facilities.--In the case of any qualified 
                facility--
                          ``(i) which satisfies the requirements under 
                      paragraph (9)(B), or
                          ``(ii) with a maximum net output of less than 
                      1 megawatt (as measured in alternating current),
                the applicable percentage shall be 100 percent.
                    ``(C) <<NOTE: Effective dates.>>  Phased domestic 
                content requirement.--Subject to subparagraph (D), in 
                the case of any qualified facility which is not 
                described in subparagraph (B), the applicable percentage 
                shall be--
                          ``(i) if construction of such facility began 
                      before January 1, 2024, 100 percent, and
                          ``(ii) if construction of such facility began 
                      in calendar year 2024, 90 percent.
                    ``(D) Exception.--
                          ``(i) In general.--For purposes of this 
                      paragraph, the Secretary shall provide exceptions 
                      to the requirements under this paragraph if--
                                    ``(I) the inclusion of steel, iron, 
                                or manufactured products which are 
                                produced in the United States increases 
                                the overall costs of construction of 
                                qualified facilities by more than 25 
                                percent, or

[[Page 136 STAT. 1912]]

                                    ``(II) relevant steel, iron, or 
                                manufactured products are not produced 
                                in the United States in sufficient and 
                                reasonably available quantities or of a 
                                satisfactory quality.
                          ``(ii) Applicable percentage.--In any case in 
                      which the Secretary provides an exception pursuant 
                      to clause (i), the applicable percentage shall be 
                      100 percent.
            ``(11) Special rule for qualified facility located in energy 
        community.--
                    ``(A) In general.--In the case of a qualified 
                facility which is located in an energy community, the 
                credit determined under subsection (a) (determined after 
                the application of paragraphs (1) through (10), without 
                the application of paragraph (9)) shall be increased by 
                an amount equal to 10 percent of the amount so 
                determined.
                    ``(B) <<NOTE: Definition.>>  Energy community.--For 
                purposes of this paragraph, the term `energy community' 
                means--
                          ``(i) a brownfield site (as defined in 
                      subparagraphs (A), (B), and (D)(ii)(III) of 
                      section 101(39) of the Comprehensive Environmental 
                      Response, Compensation, and Liability Act of 1980 
                      (42 U.S.C. 9601(39))),
                          ``(ii) <<NOTE: Determinations.>>  a 
                      metropolitan statistical area or non-metropolitan 
                      statistical area which--
                                    ``(I) has (or, at any time during 
                                the period beginning after December 31, 
                                2009, had) 0.17 percent or greater 
                                direct employment or 25 percent or 
                                greater local tax revenues related to 
                                the extraction, processing, transport, 
                                or storage of coal, oil, or natural gas 
                                (as determined by the Secretary), and
                                    ``(II) has an unemployment rate at 
                                or above the national average 
                                unemployment rate for the previous year 
                                (as determined by the Secretary), or
                          ``(iii) a census tract--
                                    ``(I) <<NOTE: Effective dates.>>  in 
                                which--
                                            ``(aa) after December 31, 
                                        1999, a coal mine has closed, or
                                            ``(bb) after December 31, 
                                        2009, a coal-fired electric 
                                        generating unit has been 
                                        retired, or
                                    ``(II) which is directly adjoining 
                                to any census tract described in 
                                subclause (I).''.

    (h) Credit Reduced for Tax-exempt Bonds.--Section <<NOTE: 26 USC 
45.>>  45(b)(3) is amended to read as follows:
            ``(3) Credit reduced for tax-exempt bonds.--The amount of 
        the credit determined under subsection (a) with respect to any 
        facility for any taxable year (determined after the application 
        of paragraphs (1) and (2)) shall be reduced by the amount which 
        is the product of the amount so determined for such year and the 
        lesser of 15 percent or a fraction--
                    ``(A) the numerator of which is the sum, for the 
                taxable year and all prior taxable years, of proceeds of 
                an issue of any obligations the interest on which is 
                exempt from tax under section 103 and which is used to 
                provide financing for the qualified facility, and

[[Page 136 STAT. 1913]]

                    ``(B) the denominator of which is the aggregate 
                amount of additions to the capital account for the 
                qualified facility for the taxable year and all prior 
                taxable years.
        The <<NOTE: Determination.>>  amounts under the preceding 
        sentence for any taxable year shall be determined as of the 
        close of the taxable year.''.

    (i) Rounding Adjustment.--
            (1) In general.--Section 45(b)(2) <<NOTE: 26 USC 45.>>  is 
        amended by striking the second sentence and inserting the 
        following: ``If the 0.3 cent amount as increased under the 
        preceding sentence is not a multiple of 0.05 cent, such amount 
        shall be rounded to the nearest multiple of 0.05 cent. In any 
        other case, if an amount as increased under this paragraph is 
        not a multiple of 0.1 cent, such amount shall be rounded to the 
        nearest multiple of 0.1 cent.''.
            (2) Conforming amendment.--Section 45(b)(4)(A) is amended by 
        striking ``last sentence'' and inserting ``last two sentences''.

    (j) Hydropower.--
            (1) Elimination of credit rate reduction for qualified 
        hydroelectric production and marine and hydrokinetic renewable 
        energy.--Section 45(b)(4)(A), as amended by the preceding 
        provisions of this section, is amended by striking ``(7), (9), 
        or (11)'' and inserting ``or (7)''.
            (2) Marine and hydrokinetic renewable energy.--Section 45 is 
        amended--
                    (A) in subsection (c)(10)(A)--
                          (i) in clause (iii), by striking ``or'',
                          (ii) in clause (iv), by striking the period at 
                      the end and inserting ``, or'' and
                          (iii) by adding at the end the following:
                          ``(v) pressurized water used in a pipeline (or 
                      similar man-made water conveyance) which is 
                      operated--
                                    ``(I) for the distribution of water 
                                for agricultural, municipal, or 
                                industrial consumption, and
                                    ``(II) not primarily for the 
                                generation of electricity.'', and
                    (B) in subsection (d)(11)(A), by striking ``150'' 
                and inserting ``25''.

    (k) <<NOTE: Applicability. 26 USC 45 note.>>  Effective Dates.--
            (1) In general.--Except as provided in paragraphs (2) and 
        (3), the amendments made by this section shall apply to 
        facilities placed in service after December 31, 2021.
            (2) Credit reduced for tax-exempt bonds.--The amendment made 
        by subsection (h) shall apply to facilities the construction of 
        which begins after the date of enactment of this Act.
            (3) Domestic content, phaseout, energy communities, and 
        hydropower.--The amendments made by subsections (g) and (j) 
        shall apply to facilities placed in service after December 31, 
        2022.
SEC. 13102. EXTENSION AND MODIFICATION OF ENERGY CREDIT.

    (a) Extension of Credit.--The following provisions of section 48 are 
each amended by striking ``January 1, 2024'' each place it appears and 
inserting ``January 1, 2025'':
            (1) Subsection (a)(2)(A)(i)(II).
            (2) Subsection (a)(3)(A)(ii).

[[Page 136 STAT. 1914]]

            (3) Subsection (c)(1)(D).
            (4) Subsection (c)(2)(D).
            (5) Subsection (c)(3)(A)(iv).
            (6) Subsection (c)(4)(C).
            (7) Subsection (c)(5)(D).

    (b) Further Extension for Certain Energy Property.--Section 
48(a)(3)(A)(vii) <<NOTE: 26 USC 48.>>  is amended by striking ``January 
1, 2024'' and inserting ``January 1, 2035''.

    (c) Phaseout of Credit.--Section 48(a) is amended by striking 
paragraphs (6) and (7) and inserting the following new paragraph:
            ``(6) <<NOTE: Effective dates.>>  Phaseout for certain 
        energy property.--In the case of any qualified fuel cell 
        property, qualified small wind property, or energy property 
        described in clause (i) or clause (ii) of paragraph (3)(A) the 
        construction of which begins after December 31, 2019, and which 
        is placed in service before January 1, 2022, the energy 
        percentage determined under paragraph (2) shall be equal to 26 
        percent.''.

    (d) Base Energy Percentage Amount; Phaseout of Certain Energy 
Property.--
            (1) Base energy percentage amount.--Section 48(a) is 
        amended--
                    (A) in paragraph (2)(A)--
                          (i) in clause (i), by striking ``30 percent'' 
                      and inserting ``6 percent'', and
                          (ii) in clause (ii), by striking ``10 
                      percent'' and inserting ``2 percent'', and
                    (B) in paragraph (5)(A)(ii), by striking ``30 
                percent'' and inserting ``6 percent''.
            (2) Phaseout of certain energy property.--Section 48(a), as 
        amended by the preceding provisions of this Act, is amended by 
        adding at the end the following new paragraph:
            ``(7) <<NOTE: Effective dates. Time periods.>>  Phaseout for 
        certain energy property.--In the case of any energy property 
        described in clause (vii) of paragraph (3)(A), the energy 
        percentage determined under paragraph (2) shall be equal to--
                    ``(A) in the case of any property the construction 
                of which begins before January 1, 2033, and which is 
                placed in service after December 31, 2021, 6 percent,
                    ``(B) in the case of any property the construction 
                of which begins after December 31, 2032, and before 
                January 1, 2034, 5.2 percent, and
                    ``(C) in the case of any property the construction 
                of which begins after December 31, 2033, and before 
                January 1, 2035, 4.4 percent.''.

    (e) 6 Percent Credit for Geothermal.--Section 48(a)(2)(A)(i)(II) is 
amended by striking ``paragraph (3)(A)(i)'' and inserting ``clause (i) 
or (iii) of paragraph (3)(A)''.
    (f) Energy Storage Technologies; Qualified Biogas Property; 
Microgrid Controllers; Extension of Other Property.--
            (1) In general.--Section 48(a)(3)(A) is amended by striking 
        ``or'' at the end of clause (vii), and by adding at the end the 
        following new clauses:
                          ``(ix) energy storage technology,
                          ``(x) qualified biogas property, or
                          ``(xi) microgrid controllers,''.

[[Page 136 STAT. 1915]]

            (2) Application of 6 percent credit.--Section 
        48(a)(2)(A)(i) <<NOTE: 26 USC 48.>>  is amended by striking 
        ``and'' at the end of subclauses (IV) and (V) and adding at the 
        end the following new subclauses:
                                    ``(VI) energy storage technology,
                                    ``(VII) qualified biogas property,
                                    ``(VIII) microgrid controllers, and
                                    ``(IX) energy property described in 
                                clauses (v) and (vii) of paragraph 
                                (3)(A), and''.
            (3) Definitions.--Section 48(c) is amended by adding at the 
        end the following new paragraphs:
            ``(6) Energy storage technology.--
                    ``(A) In general.--The term `energy storage 
                technology' means--
                          ``(i) property (other than property primarily 
                      used in the transportation of goods or individuals 
                      and not for the production of electricity) which 
                      receives, stores, and delivers energy for 
                      conversion to electricity (or, in the case of 
                      hydrogen, which stores energy), and has a 
                      nameplate capacity of not less than 5 kilowatt 
                      hours, and
                          ``(ii) thermal energy storage property.
                    ``(B) Modifications of certain property.--In the 
                case of any property which either--
                          ``(i) was placed in service before the date of 
                      enactment of this section and would be described 
                      in subparagraph (A)(i), except that such property 
                      has a capacity of less than 5 kilowatt hours and 
                      is modified in a manner that such property (after 
                      such modification) has a nameplate capacity of not 
                      less than 5 kilowatt hours, or
                          ``(ii) is described in subparagraph (A)(i) and 
                      is modified in a manner that such property (after 
                      such modification) has an increase in nameplate 
                      capacity of not less than 5 kilowatt hours,
                such property shall be treated as described in 
                subparagraph (A)(i) except that the basis of any 
                existing property prior to such modification shall not 
                be taken into account for purposes of this 
                section. <<NOTE: Applicability.>>  In the case of any 
                property to which this subparagraph applies, 
                subparagraph (D) shall be applied by substituting 
                `modification' for `construction'.
                    ``(C) Thermal energy storage property.--
                          ``(i) In general.--Subject to clause (ii), for 
                      purposes of this paragraph, the term `thermal 
                      energy storage property' means property comprising 
                      a system which--
                                    ``(I) is directly connected to a 
                                heating, ventilation, or air 
                                conditioning system,
                                    ``(II) removes heat from, or adds 
                                heat to, a storage medium for subsequent 
                                use, and
                                    ``(III) provides energy for the 
                                heating or cooling of the interior of a 
                                residential or commercial building.
                          ``(ii) Exclusion.--The term `thermal energy 
                      storage property' shall not include--
                                    ``(I) a swimming pool,

[[Page 136 STAT. 1916]]

                                    ``(II) combined heat and power 
                                system property, or
                                    ``(III) a building or its structural 
                                components.
                    ``(D) Termination.--The term `energy storage 
                technology' shall not include any property the 
                construction of which begins after December 31, 2024.
            ``(7) Qualified biogas property.--
                    ``(A) In general.--The term `qualified biogas 
                property' means property comprising a system which--
                          ``(i) converts biomass (as defined in section 
                      45K(c)(3), as in effect on the date of enactment 
                      of this paragraph) into a gas which--
                                    ``(I) consists of not less than 52 
                                percent methane by volume, or
                                    ``(II) is concentrated by such 
                                system into a gas which consists of not 
                                less than 52 percent methane, and
                          ``(ii) captures such gas for sale or 
                      productive use, and not for disposal via 
                      combustion.
                    ``(B) Inclusion of cleaning and conditioning 
                property.--The term `qualified biogas property' includes 
                any property which is part of such system which cleans 
                or conditions such gas.
                    ``(C) Termination.--The term `qualified biogas 
                property' shall not include any property the 
                construction of which begins after December 31, 2024.
            ``(8) Microgrid controller.--
                    ``(A) In general.--The term `microgrid controller' 
                means equipment which is--
                          ``(i) part of a qualified microgrid, and
                          ``(ii) designed and used to monitor and 
                      control the energy resources and loads on such 
                      microgrid.
                    ``(B) Qualified microgrid.--The term `qualified 
                microgrid' means an electrical system which--
                          ``(i) includes equipment which is capable of 
                      generating not less than 4 kilowatts and not 
                      greater than 20 megawatts of electricity,
                          ``(ii) is capable of operating--
                                    ``(I) in connection with the 
                                electrical grid and as a single 
                                controllable entity with respect to such 
                                grid, and
                                    ``(II) independently (and 
                                disconnected) from such grid, and
                          ``(iii) is not part of a bulk-power system (as 
                      defined in section 215 of the Federal Power Act 
                      (16 U.S.C. 824o)).
                    ``(C) Termination.--The term `microgrid controller' 
                shall not include any property the construction of which 
                begins after December 31, 2024.''.
            (4) Denial of double benefit for qualified biogas 
        property.--Section 45(e) is <<NOTE: 26 USC 45.>>  amended by 
        adding at the end the following new paragraph:
            ``(12) Coordination with energy credit for qualified biogas 
        property.--The term `qualified facility' shall not include any 
        facility which produces electricity from gas produced by 
        qualified biogas property (as defined in section 48(c)(7)) if a

[[Page 136 STAT. 1917]]

        credit is allowed under section 48 with respect to such property 
        for the taxable year or any prior taxable year.''.
            (5) Public utility property.--Paragraph (2) of section 
        50(d) <<NOTE: 26 USC 50.>>  is amended--
                    (A) by adding after the first sentence the following 
                new sentence: ``At the election of a taxpayer, this 
                paragraph shall not apply to any energy storage 
                technology (as defined in section 48(c)(6)), provided--
                '', and
                    (B) by adding the following new subparagraphs:
                    ``(A) no election under this paragraph shall be 
                permitted if the making of such election is prohibited 
                by a State or political subdivision thereof, by any 
                agency or instrumentality of the United States, or by a 
                public service or public utility commission or other 
                similar body of any State or political subdivision that 
                regulates public utilities as described in section 
                7701(a)(33)(A),
                    ``(B) an election under this paragraph shall be made 
                separately with respect to each energy storage 
                technology by the due date (including extensions) of the 
                Federal tax return for the taxable year in which the 
                energy storage technology is placed in service by the 
                taxpayer, and once made, may be revoked only with the 
                consent of the Secretary, and
                    ``(C) an election shall not apply with respect to 
                any energy storage technology if such energy storage 
                technology has a maximum capacity equal to or less than 
                500 kilowatt hours.''.

    (g) Fuel Cells Using Electromechanical Processes.--
            (1) In general.--Section 48(c)(1) is amended--
                    (A) in subparagraph (A)(i)--
                          (i) by inserting ``or electromechanical'' 
                      after ``electrochemical'', and
                          (ii) by inserting ``(1 kilowatt in the case of 
                      a fuel cell power plant with a linear generator 
                      assembly)'' after ``0.5 kilowatt'', and
                    (B) in subparagraph (C)--
                          (i) by inserting ``, or linear generator 
                      assembly,'' after ``a fuel cell stack assembly'', 
                      and
                          (ii) by inserting ``or electromechanical'' 
                      after ``electrochemical''.
            (2) Linear generator assembly limitation.--Section 48(c)(1) 
        is amended by redesignating subparagraph (D) as subparagraph (E) 
        and by inserting after subparagraph (C) the following new 
        subparagraph:
                    ``(D) Linear generator assembly.--The term `linear 
                generator assembly' does not include any assembly which 
                contains rotating parts.''.

    (h) Dynamic Glass.--Section 48(a)(3)(A)(ii) is amended by inserting 
``, or electrochromic glass which uses electricity to change its light 
transmittance properties in order to heat or cool a structure,'' after 
``sunlight''.
    (i) Coordination With Low Income Housing Tax Credit.--Paragraph (3) 
of section 50(c) is amended--
            (1) by striking ``and'' at the end of subparagraph (A),
            (2) by striking the period at the end of subparagraph (B) 
        and inserting ``, and'', and
            (3) by adding at the end the following new subparagraph:

[[Page 136 STAT. 1918]]

                    ``(C) paragraph (1) shall not apply for purposes of 
                determining eligible basis under section 42.''.

    (j) Interconnection Property.--Section 48(a), as amended by the 
preceding provisions of this Act, <<NOTE: 26 USC 48.>>  is amended by 
adding at the end the following new paragraph:
            ``(8) <<NOTE: Definitions.>>  Interconnection property.--
                    ``(A) <<NOTE: Determination.>>  In general.--For 
                purposes of determining the credit under subsection (a), 
                energy property shall include amounts paid or incurred 
                by the taxpayer for qualified interconnection property 
                in connection with the installation of energy property 
                (as defined in paragraph (3)) which has a maximum net 
                output of not greater than 5 megawatts (as measured in 
                alternating current), to provide for the transmission or 
                distribution of the electricity produced or stored by 
                such property, and which are properly chargeable to the 
                capital account of the taxpayer.
                    ``(B) Qualified interconnection property.--The term 
                `qualified interconnection property' means, with respect 
                to an energy project which is not a microgrid 
                controller, any tangible property--
                          ``(i) which is part of an addition, 
                      modification, or upgrade to a transmission or 
                      distribution system which is required at or beyond 
                      the point at which the energy project 
                      interconnects to such transmission or distribution 
                      system in order to accommodate such 
                      interconnection,
                          ``(ii) either--
                                    ``(I) which is constructed, 
                                reconstructed, or erected by the 
                                taxpayer, or
                                    ``(II) for which the cost with 
                                respect to the construction, 
                                reconstruction, or erection of such 
                                property is paid or incurred by such 
                                taxpayer, and
                          ``(iii) the original use of which, pursuant to 
                      an interconnection agreement, commences with a 
                      utility.
                    ``(C) Interconnection agreement.--The term 
                `interconnection agreement' means an agreement with a 
                utility for the purposes of interconnecting the energy 
                property owned by such taxpayer to the transmission or 
                distribution system of such utility.
                    ``(D) Utility.--For purposes of this paragraph, the 
                term `utility' means the owner or operator of an 
                electrical transmission or distribution system which is 
                subject to the regulatory authority of a State or 
                political subdivision thereof, any agency or 
                instrumentality of the United States, a public service 
                or public utility commission or other similar body of 
                any State or political subdivision thereof, or the 
                governing or ratemaking body of an electric cooperative.
                    ``(E) Special rule for interconnection property.--In 
                the case of expenses paid or incurred for 
                interconnection property, amounts otherwise chargeable 
                to capital account with respect to such expenses shall 
                be reduced under rules similar to the rules of section 
                50(c).''.

    (k) Energy Projects, Wage Requirements, and Apprenticeship 
Requirements.--Section 48(a), as amended by the preceding provisions of 
this Act, is amended by adding at the end the following new paragraphs:

[[Page 136 STAT. 1919]]

            ``(9) Increased credit amount for energy projects.--
                    ``(A) In general.--
                          ``(i) Rule.--In the case of any energy project 
                      which satisfies the requirements of subparagraph 
                      (B), the amount of the credit determined under 
                      this subsection (determined after the application 
                      of paragraphs (1) through (8) and without regard 
                      to this clause) shall be equal to such amount 
                      multiplied by 5.
                          ``(ii) Energy project defined.--For purposes 
                      of this subsection, the term `energy project' 
                      means a project consisting of one or more energy 
                      properties that are part of a single project.
                    ``(B) Project requirements.--A project meets the 
                requirements of this subparagraph if it is one of the 
                following:
                          ``(i) A project with a maximum net output of 
                      less than 1 megawatt of electrical (as measured in 
                      alternating current) or thermal energy.
                          ``(ii) <<NOTE: Time 
                      period. Publication. Guidelines.>>  A project the 
                      construction of which begins before the date that 
                      is 60 days after the Secretary publishes guidance 
                      with respect to the requirements of paragraphs 
                      (10)(A) and (11).
                          ``(iii) A project which satisfies the 
                      requirements of paragraphs (10)(A) and (11).
            ``(10) Prevailing wage requirements.--
                    ``(A) In general.--The requirements described in 
                this subparagraph with respect to any energy project are 
                that the taxpayer shall ensure that any laborers and 
                mechanics employed by the taxpayer or any contractor or 
                subcontractor in--
                          ``(i) the construction of such energy project, 
                      and
                          ``(ii) <<NOTE: Time period.>>  for the 5-year 
                      period beginning on the date such project is 
                      originally placed in service, the alteration or 
                      repair of such project,
                shall be paid wages at rates not less than the 
                prevailing rates for construction, alteration, or repair 
                of a similar character in the locality in which such 
                project is located as most recently determined by the 
                Secretary of Labor, in accordance with subchapter IV of 
                chapter 31 of title 40, United States Code. Subject to 
                subparagraph (C), for purposes of any determination 
                under paragraph (9)(A)(i) for the taxable year in which 
                the energy project is placed in service, the taxpayer 
                shall be deemed to satisfy the requirement under clause 
                (ii) at the time such project is placed in service.
                    ``(B) <<NOTE: Applicability.>>  Correction and 
                penalty related to failure to satisfy wage 
                requirements.--Rules similar to the rules of section 
                45(b)(7)(B) shall apply.
                    ``(C) <<NOTE: Regulations. Guidelines.>>  
                Recapture.--The Secretary shall, by regulations or other 
                guidance, provide for recapturing the benefit of any 
                increase in the credit allowed under this subsection by 
                reason of this paragraph with respect to any project 
                which does not satisfy the requirements under 
                subparagraph (A) (after application of subparagraph (B)) 
                for the period described in clause (ii) of subparagraph 
                (A) (but which does not cease to be investment credit 
                property within the meaning of section 
                50(a)). <<NOTE: Determination.>>  The period and

[[Page 136 STAT. 1920]]

                percentage of such recapture shall be determined under 
                rules similar to the rules of section 50(a).
            ``(11) Apprenticeship requirements.--Rules similar to the 
        rules of section 45(b)(8) shall apply.''.

    (l) Domestic Content; Phaseout for Elective Payment.--Section 48(a), 
as amended by the preceding provisions of this Act, <<NOTE: 26 USC 
48.>>  is amended by adding at the end the following new paragraphs:
            ``(12) Domestic content bonus credit amount.--
                    ``(A) In general.--In the case of any energy project 
                which satisfies the requirement under subparagraph (B), 
                for purposes of applying paragraph (2) with respect to 
                such property, the energy percentage shall be increased 
                by the applicable credit rate increase.
                    ``(B) <<NOTE: Applicability.>>  Requirement.--Rules 
                similar to the rules of section 45(b)(9)(B) shall apply.
                    ``(C) Applicable credit rate increase.--For purposes 
                of subparagraph (A), the applicable credit rate increase 
                shall be--
                          ``(i) in the case of an energy project which 
                      does not satisfy the requirements of paragraph 
                      (9)(B), 2 percentage points, and
                          ``(ii) in the case of an energy project which 
                      satisfies the requirements of paragraph (9)(B), 10 
                      percentage points.
            ``(13) <<NOTE: Applicability.>>  Phaseout for elective 
        payment.--In the case of a taxpayer making an election under 
        section 6417 with respect to a credit under this section, rules 
        similar to the rules of section 45(b)(10) shall apply.''.

    (m) Special Rule for Property Financed by Tax-exempt Bonds.--Section 
48(a)(4) is amended to read as follows:
            ``(4) Special rule for property financed by tax-exempt 
        bonds. <<NOTE: Applicability.>> --Rules similar to the rule 
        under section 45(b)(3) shall apply for purposes of this 
        section.''.

    (n) Treatment of Certain Contracts Involving Energy Storage.--
Section 7701(e) is amended--
            (1) in paragraph (3)--
                    (A) in subparagraph (A)(i), by striking ``or'' at 
                the end of subclause (II), by striking ``and'' at the 
                end of subclause (III) and inserting ``or'', and by 
                adding at the end the following new subclause:
                                    ``(IV) the operation of a storage 
                                facility, and'', and
                    (B) by adding at the end the following new 
                subparagraph:
                    ``(F) <<NOTE: Definition.>>  Storage facility.--For 
                purposes of subparagraph (A), the term `storage 
                facility' means a facility which uses energy storage 
                technology within the meaning of section 48(c)(6).'', 
                and
            (2) in paragraph (4), by striking ``or water treatment works 
        facility'' and inserting ``water treatment works facility, or 
        storage facility''.

    (o) Increase in Credit Rate for Energy Communities.--Section 48(a), 
as amended by the preceding provisions of this Act, is amended by adding 
at the end the following new paragraph:
            ``(14) Increase in credit rate for energy communities.--

[[Page 136 STAT. 1921]]

                    ``(A) In general.--In the case of any energy project 
                that is placed in service within an energy community (as 
                defined in section 45(b)(11)(B), as applied by 
                substituting `energy project' for `qualified facility' 
                each place it appears), for purposes of applying 
                paragraph (2) with respect to energy property which is 
                part of such project, the energy percentage shall be 
                increased by the applicable credit rate increase.
                    ``(B) Applicable credit rate increase.--For purposes 
                of subparagraph (A), the applicable credit rate increase 
                shall be equal to--
                          ``(i) in the case of any energy project which 
                      does not satisfy the requirements of paragraph 
                      (9)(B), 2 percentage points, and
                          ``(ii) in the case of any energy project which 
                      satisfies the requirements of paragraph (9)(B), 10 
                      percentage points.''.

    (p) Regulations.--Section 48(a), as amended by the preceding 
provisions of this Act, <<NOTE: 26 USC 48.>>  is amended by adding at 
the end the following new paragraph:
            ``(15) <<NOTE: Determination. Requirements. Records.>>  
        Regulations and guidance.--The Secretary shall issue such 
        regulations or other guidance as the Secretary determines 
        necessary to carry out the purposes of this subsection, 
        including regulations or other guidance which provides for 
        requirements for recordkeeping or information reporting for 
        purposes of administering the requirements of this 
        subsection.''.

    (q) <<NOTE: Applicability. 26 USC 45 note.>>  Effective Dates.--
            (1) In general.--Except as provided in paragraphs (2) and 
        (3), the amendments made by this section shall apply to property 
        placed in service after December 31, 2021.
            (2) Other property.--The amendments made by subsections (f), 
        (g), (h), (i), (j), (l), (n), and (o) shall apply to property 
        placed in service after December 31, 2022.
            (3) Special rule for property financed by tax-exempt 
        bonds.--The amendments made by subsection (m) shall apply to 
        property the construction of which begins after the date of 
        enactment of this Act.
SEC. 13103. INCREASE IN ENERGY CREDIT FOR SOLAR AND WIND 
                            FACILITIES PLACED IN SERVICE IN 
                            CONNECTION WITH LOW-INCOME 
                            COMMUNITIES.

    (a) In General.--Section 48 is amended by adding at the end the 
following new subsection:
    ``(e) Special Rules for Certain Solar and Wind Facilities Placed in 
Service in Connection With Low-income Communities.--
            ``(1) In general.--In the case of any qualified solar and 
        wind facility with respect to which the Secretary makes an 
        allocation of environmental justice solar and wind capacity 
        limitation under paragraph (4)--
                    ``(A) the energy percentage otherwise determined 
                under paragraph (2) or (5) of subsection (a) with 
                respect to any eligible property which is part of such 
                facility shall be increased by--

[[Page 136 STAT. 1922]]

                          ``(i) in the case of a facility described in 
                      subclause (I) of paragraph (2)(A)(iii) and not 
                      described in subclause (II) of such paragraph, 10 
                      percentage points, and
                          ``(ii) in the case of a facility described in 
                      subclause (II) of paragraph (2)(A)(iii), 20 
                      percentage points, and
                    ``(B) the increase in the credit determined under 
                subsection (a) by reason of this subsection for any 
                taxable year with respect to all property which is part 
                of such facility shall not exceed the amount which bears 
                the same ratio to the amount of such increase 
                (determined without regard to this subparagraph) as--
                          ``(i) the environmental justice solar and wind 
                      capacity limitation allocated to such facility, 
                      bears to
                          ``(ii) the total megawatt nameplate capacity 
                      of such facility, as measured in direct current.
            ``(2) Qualified solar and wind facility.--For purposes of 
        this subsection--
                    ``(A) <<NOTE: Definition.>>  In general.--The term 
                `qualified solar and wind facility' means any facility--
                          ``(i) which generates electricity solely from 
                      property described in section 45(d)(1) or in 
                      clause (i) or (vi) of subsection (a)(3)(A),
                          ``(ii) which has a maximum net output of less 
                      than 5 megawatts (as measured in alternating 
                      current), and
                          ``(iii) which--
                                    ``(I) is located in a low-income 
                                community (as defined in section 45D(e)) 
                                or on Indian land (as defined in section 
                                2601(2) of the Energy Policy Act of 1992 
                                (25 U.S.C. 3501(2))), or
                                    ``(II) is part of a qualified low-
                                income residential building project or a 
                                qualified low-income economic benefit 
                                project.
                    ``(B) Qualified low-income residential building 
                project.--A facility shall be treated as part of a 
                qualified low-income residential building project if--
                          ``(i) such facility is installed on a 
                      residential rental building which participates in 
                      a covered housing program (as defined in section 
                      41411(a) of the Violence Against Women Act of 1994 
                      (34 U.S.C. 12491(a)(3)), a housing assistance 
                      program administered by the Department of 
                      Agriculture under title V of the Housing Act of 
                      1949, a housing program administered by a tribally 
                      designated housing entity (as defined in section 
                      4(22) of the Native American Housing Assistance 
                      and Self-Determination Act of 1996 (25 U.S.C. 
                      4103(22))) or such other affordable housing 
                      programs as the Secretary may provide, and
                          ``(ii) the financial benefits of the 
                      electricity produced by such facility are 
                      allocated equitably among the occupants of the 
                      dwelling units of such building.
                    ``(C) Qualified low-income economic benefit 
                project.--A facility shall be treated as part of a 
                qualified low-income economic benefit project if at 
                least 50 percent of the financial benefits of the 
                electricity produced by such facility are provided to 
                households with income of--

[[Page 136 STAT. 1923]]

                          ``(i) less than 200 percent of the poverty 
                      line (as defined in section 36B(d)(3)(A)) 
                      applicable to a family of the size involved, or
                          ``(ii) less than 80 percent of area median 
                      gross income (as determined under section 
                      142(d)(2)(B)).
                    ``(D) Financial benefit.--For purposes of 
                subparagraphs (B) and (C), electricity acquired at a 
                below-market rate shall not fail to be taken into 
                account as a financial benefit.
            ``(3) <<NOTE: Definition.>>  Eligible property.--For 
        purposes of this section, the term `eligible property' means 
        energy property which--
                    ``(A) is part of a facility described in section 
                45(d)(1) for which an election was made under subsection 
                (a)(5), or
                    ``(B) is described in clause (i) or (vi) of 
                subsection (a)(3)(A),
        including energy storage technology (as described in subsection 
        (a)(3)(A)(ix)) installed in connection with such energy 
        property.
            ``(4) Allocations.--
                    ``(A) <<NOTE: Deadline.>>  In general.--Not later 
                than 180 days after the date of enactment of this 
                subsection, the Secretary shall establish a program to 
                allocate amounts of environmental justice solar and wind 
                capacity limitation to qualified solar and wind 
                facilities. <<NOTE: Procedures.>>  In establishing such 
                program and to carry out the purposes of this 
                subsection, the Secretary shall provide procedures to 
                allow for an efficient allocation process, including, 
                when determined appropriate, consideration of multiple 
                projects in a single application if such projects will 
                be placed in service by a single taxpayer.
                    ``(B) Limitation.--The amount of environmental 
                justice solar and wind capacity limitation allocated by 
                the Secretary under subparagraph (A) during any calendar 
                year shall not exceed the annual capacity limitation 
                with respect to such year.
                    ``(C) <<NOTE: Definition.>>  Annual capacity 
                limitation.--For purposes of this paragraph, the term 
                `annual capacity limitation' means 1.8 gigawatts of 
                direct current capacity for each of calendar years 2023 
                and 2024, and zero thereafter.
                    ``(D) Carryover of unused limitation.--If the annual 
                capacity limitation for any calendar year exceeds the 
                aggregate amount allocated for such year under this 
                paragraph, such limitation for the succeeding calendar 
                year shall be increased by the amount of such excess. No 
                amount may be carried under the preceding sentence to 
                any calendar year after 2024 except as provided in 
                section 48E(h)(4)(D)(ii).
                    ``(E) Placed in service deadline.--
                          ``(i) <<NOTE: Time period.>>  In general.--
                      Paragraph (1) shall not apply with respect to any 
                      property which is placed in service after the date 
                      that is 4 years after the date of the allocation 
                      with respect to the facility of which such 
                      property is a part.
                          ``(ii) Application of carryover.--Any amount 
                      of environmental justice solar and wind capacity 
                      limitation which expires under clause (i) during 
                      any calendar year shall be taken into account as 
                      an excess described in subparagraph (D) (or as an 
                      increase in such excess)

[[Page 136 STAT. 1924]]

                      for such calendar year, subject to the limitation 
                      imposed by the last sentence of such subparagraph.
            ``(5) <<NOTE: Regulations. Guidelines.>>  Recapture.--The 
        Secretary shall, by regulations or other guidance, provide for 
        recapturing the benefit of any increase in the credit allowed 
        under subsection (a) by reason of this subsection with respect 
        to any property which ceases to be property eligible for such 
        increase (but which does not cease to be investment credit 
        property within the meaning of section 
        50(a)). <<NOTE: Determination. Time period.>>  The period and 
        percentage of such recapture shall be determined under rules 
        similar to the rules of section 50(a). To the extent provided by 
        the Secretary, such recapture may not apply with respect to any 
        property if, within 12 months after the date the taxpayer 
        becomes aware (or reasonably should have become aware) of such 
        property ceasing to be property eligible for such increase, the 
        eligibility of such property for such increase is restored. The 
        preceding sentence shall not apply more than once with respect 
        to any facility.''.

    (b) <<NOTE: 26 USC 48 note.>>  Effective Date.--The amendments made 
by this section shall take effect on January 1, 2023.
SEC. 13104. EXTENSION AND MODIFICATION OF CREDIT FOR CARBON OXIDE 
                            SEQUESTRATION.

    (a) Modification of Carbon Oxide Capture Requirements.--
            (1) In general.--Section 45Q(d) <<NOTE: 26 USC 45Q.>>  is 
        amended to read as follows:

    ``(d) <<NOTE: Definition.>>  Qualified Facility.--For purposes of 
this section, the term `qualified facility' means any industrial 
facility or direct air capture facility--
            ``(1) <<NOTE: Effective date.>>  the construction of which 
        begins before January 1, 2033, and either--
                    ``(A) construction of carbon capture equipment 
                begins before such date, or
                    ``(B) the original planning and design for such 
                facility includes installation of carbon capture 
                equipment, and
            ``(2) which--
                    ``(A) in the case of a direct air capture facility, 
                captures not less than 1,000 metric tons of qualified 
                carbon oxide during the taxable year,
                    ``(B) in the case of an electricity generating 
                facility--
                          ``(i) captures not less than 18,750 metric 
                      tons of qualified carbon oxide during the taxable 
                      year, and
                          ``(ii) with respect to any carbon capture 
                      equipment for the applicable electric generating 
                      unit at such facility, has a capture design 
                      capacity of not less than 75 percent of the 
                      baseline carbon oxide production of such unit, or
                    ``(C) in the case of any other facility, captures 
                not less than 12,500 metric tons of qualified carbon 
                oxide during the taxable year.''.
            (2) Definitions.--
                    (A) In general.--Section 45Q(e) is amended--
                          (i) by redesignating paragraphs (1) through 
                      (3) as paragraphs (3) through (5), respectively, 
                      and
                          (ii) by inserting after ``For purposes of this 
                      section--'' the following new paragraphs:

[[Page 136 STAT. 1925]]

            ``(1) Applicable electric generating unit.--The term 
        `applicable electric generating unit' means the principal 
        electric generating unit for which the carbon capture equipment 
        is originally planned and designed.
            ``(2) Baseline carbon oxide production.--
                    ``(A) <<NOTE: Time periods.>>  In general.--The term 
                `baseline carbon oxide production' means either of the 
                following:
                          ``(i) In the case of an applicable electric 
                      generating unit which was originally placed in 
                      service more than 1 year prior to the date on 
                      which construction of the carbon capture equipment 
                      begins, the average annual carbon oxide 
                      production, by mass, from such unit during--
                                    ``(I) in the case of an applicable 
                                electric generating unit which was 
                                originally placed in service more than 1 
                                year prior to the date on which 
                                construction of the carbon capture 
                                equipment begins and on or after the 
                                date which is 3 years prior to the date 
                                on which construction of such equipment 
                                begins, the period beginning on the date 
                                such unit was placed in service and 
                                ending on the date on which construction 
                                of such equipment began, and
                                    ``(II) in the case of an applicable 
                                electric generating unit which was 
                                originally placed in service more than 3 
                                years prior to the date on which 
                                construction of the carbon capture 
                                equipment begins, the 3 years with the 
                                highest annual carbon oxide production 
                                during the 12-year period preceding the 
                                date on which construction of such 
                                equipment began.
                          ``(ii) In the case of an applicable electric 
                      generating unit which--
                                    ``(I) as of the date on which 
                                construction of the carbon capture 
                                equipment begins, is not yet placed in 
                                service, or
                                    ``(II) was placed in service during 
                                the 1-year period prior to the date on 
                                which construction of the carbon capture 
                                equipment begins,
                      the designed annual carbon oxide production, by 
                      mass, as determined based on an assumed capacity 
                      factor of 60 percent.
                    ``(B) Capacity factor.--The term `capacity factor' 
                means the ratio (expressed as a percentage) of the 
                actual electric output from the applicable electric 
                generating unit to the potential electric output from 
                such unit.''.
                    (B) Conforming amendment.--Section 
                142(o)(1)(B) <<NOTE: 26 USC 142.>>  is amended by 
                striking ``section 45Q(e)(1)'' and inserting ``section 
                45Q(e)(3)''.

    (b) Modified Applicable Dollar Amount.--Section 45Q(b)(1)(A) is 
amended--
            (1) in clause (i)--
                    (A) in subclause (I), by striking ``the dollar 
                amount'' and all that follows through ``such period'' 
                and inserting ``$17'', and

[[Page 136 STAT. 1926]]

                    (B) in subclause (II), by striking ``the dollar 
                amount'' and all that follows through ``such period'' 
                and inserting ``$12'', and
            (2) in clause (ii)--
                    (A) in subclause (I), by striking ``$50'' and 
                inserting ``$17'', and
                    (B) in subclause (II), by striking ``$35'' and 
                inserting ``$12''.

    (c) Determination of Applicable Dollar Amount.--
            (1) <<NOTE: Effective dates.>>  In general.--Section 
        45Q(b)(1), as amended by the preceding provisions of this 
        Act, <<NOTE: 26 USC 45Q.>>  is amended--
                    (A) by redesignating subparagraph (B) as 
                subparagraph (D), and
                    (B) by inserting after subparagraph (A) the 
                following new subparagraphs:
                    ``(B) Special rule for direct air capture 
                facilities.--In the case of any qualified facility 
                described in subsection (d)(2)(A) which is placed in 
                service after December 31, 2022, the applicable dollar 
                amount shall be an amount equal to the applicable dollar 
                amount otherwise determined with respect to such 
                qualified facility under subparagraph (A), except that 
                such subparagraph shall be applied--
                          ``(i) by substituting `$36' for `$17' each 
                      place it appears, and
                          ``(ii) by substituting `$26' for `$12' each 
                      place it appears.
                    ``(C) Applicable dollar amount for additional carbon 
                capture equipment.--In the case of any qualified 
                facility which is placed in service before January 1, 
                2023, if any additional carbon capture equipment is 
                installed at such facility and such equipment is placed 
                in service after December 31, 2022, the applicable 
                dollar amount shall be an amount equal to the applicable 
                dollar amount otherwise determined under this paragraph, 
                except that subparagraph (B) shall be applied--
                          ``(i) by substituting `before January 1, 2023' 
                      for `after December 31, 2022', and
                          ``(ii) by substituting `the additional carbon 
                      capture equipment installed at such qualified 
                      facility' for `such qualified facility'.''.
            (2) Conforming amendments.--
                    (A) Section 45Q(b)(1)(A) is amended by striking 
                ``The applicable dollar amount'' and inserting ``Except 
                as provided in subparagraph (B) or (C), the applicable 
                dollar amount''.
                    (B) Section 45Q(b)(1)(D), as redesignated by 
                paragraph (1)(A), is amended by striking ``subparagraph 
                (A)'' and inserting ``subparagraph (A), (B), or (C)''.

    (d) Wage and Apprenticeship Requirements.--Section 45Q is amended by 
redesignating subsection (h) as subsection (i) and inserting after 
subsection (g) following new subsection:
    ``(h) Increased Credit Amount for Qualified Facilities and Carbon 
Capture Equipment.--
            ``(1) In general.--In the case of any qualified facility or 
        any carbon capture equipment which satisfy the requirements of 
        paragraph (2), the amount of the credit determined under

[[Page 136 STAT. 1927]]

        subsection (a) shall be equal to such amount (determined without 
        regard to this sentence) multiplied by 5.
            ``(2) <<NOTE: Time 
        periods. Publication. Guidelines.>> Requirements.--The 
        requirements described in this paragraph are that--
                    ``(A) with respect to any qualified facility the 
                construction of which begins on or after the date that 
                is 60 days after the Secretary publishes guidance with 
                respect to the requirements of paragraphs (3)(A) and 
                (4), as well as any carbon capture equipment placed in 
                service at such facility--
                          ``(i) subject to subparagraph (B) of paragraph 
                      (3), the taxpayer satisfies the requirements under 
                      subparagraph (A) of such paragraph with respect to 
                      such facility and equipment, and
                          ``(ii) the taxpayer satisfies the requirements 
                      under paragraph (4) with respect to the 
                      construction of such facility and equipment,
                    ``(B) with respect to any carbon capture equipment 
                the construction of which begins on or after the date 
                that is 60 days after the Secretary publishes guidance 
                with respect to the requirements of paragraphs (3)(A) 
                and (4), and which is installed at a qualified facility 
                the construction of which began prior to such date--
                          ``(i) subject to subparagraph (B) of paragraph 
                      (3), the taxpayer satisfies the requirements under 
                      subparagraph (A) of such paragraph with respect to 
                      such equipment, and
                          ``(ii) the taxpayer satisfies the requirements 
                      under paragraph (4) with respect to the 
                      construction of such equipment, or
                    ``(C) the construction of carbon capture equipment 
                begins prior to the date that is 60 days after the 
                Secretary publishes guidance with respect to the 
                requirements of paragraphs (3)(A) and (4), and such 
                equipment is installed at a qualified facility the 
                construction of which begins prior to such date.
            ``(3) <<NOTE: Applicability.>>  Prevailing wage 
        requirements.--
                    ``(A) In general.--The requirements described in 
                this subparagraph with respect to any qualified facility 
                and any carbon capture equipment placed in service at 
                such facility are that the taxpayer shall ensure that 
                any laborers and mechanics employed by the taxpayer or 
                any contractor or subcontractor in--
                          ``(i) the construction of such facility or 
                      equipment, and
                          ``(ii) with respect to any taxable year, for 
                      any portion of such taxable year which is within 
                      the period described in paragraph (3)(A) or (4)(A) 
                      of subsection (a), the alteration or repair of 
                      such facility or such equipment,
                shall be paid wages at rates not less than the 
                prevailing rates for construction, alteration, or repair 
                of a similar character in the locality in which such 
                facility and equipment are located as most recently 
                determined by the Secretary of Labor, in accordance with 
                subchapter IV of chapter 31 of title 40, United States 
                Code. For purposes

[[Page 136 STAT. 1928]]

                of determining an increased credit amount under 
                paragraph (1) for a taxable year, the requirement under 
                clause (ii) of this subparagraph is applied to such 
                taxable year in which the alteration or repair of 
                qualified facility occurs.
                    ``(B) Correction and penalty related to failure to 
                satisfy wage requirements.--Rules similar to the rules 
                of section 45(b)(7)(B) shall apply.
            ``(4) <<NOTE: Applicability.>>  Apprenticeship 
        requirements.--Rules similar to the rules of section 45(b)(8) 
        shall apply.
            ``(5) <<NOTE: Determination. Requirements. Records.>>  
        Regulations and guidance.--The Secretary shall issue such 
        regulations or other guidance as the Secretary determines 
        necessary to carry out the purposes of this subsection, 
        including regulations or other guidance which provides for 
        requirements for recordkeeping or information reporting for 
        purposes of administering the requirements of this 
        subsection.''.

    (e) Credit Reduced for Tax-exempt Bonds.--Section 45Q(f) <<NOTE: 26 
USC 45Q.>>  is amended--
            (1) by striking the second paragraph (3), as added at the 
        end of such section by section 80402(e) of the Infrastructure 
        Investment and Jobs Act (Public Law 117-58), and
            (2) by adding at the end the following new paragraph:
            ``(8) <<NOTE: Applicability.>>  Credit reduced for tax-
        exempt bonds.--Rules similar to the rule under section 45(b)(3) 
        shall apply for purposes of this section.''.

    (f) Application of Section for Certain Carbon Capture Equipment.--
Section 45Q(g) is amended by inserting ``the earlier of January 1, 2023, 
and'' before ``the end of the calendar year''.
    (g) Election.--Section 45Q(f), as amended by subsection (e), is 
amended by adding at the end the following new paragraph:
            ``(9) <<NOTE: Time period.>>  Election.--For purposes of 
        paragraphs (3) and (4) of subsection (a), a person described in 
        paragraph (3)(A)(ii) may elect, at such time and in such manner 
        as the Secretary may prescribe, to have the 12-year period begin 
        on the first day of the first taxable year in which a credit 
        under this section is claimed with respect to carbon capture 
        equipment which is originally placed in service at a qualified 
        facility on or after the date of the enactment of the Bipartisan 
        Budget Act of 2018 (after application of paragraph (6), where 
        applicable) if--
                    ``(A) no taxpayer claimed a credit under this 
                section with respect to such carbon capture equipment 
                for any prior taxable year,
                    ``(B) the qualified facility at which such carbon 
                capture equipment is placed in service is located in an 
                area affected by a federally-declared disaster (as 
                defined by section 165(i)(5)(A)) after the carbon 
                capture equipment is originally placed in service, and
                    ``(C) such federally-declared disaster results in a 
                cessation of the operation of the qualified facility or 
                the carbon capture equipment after such equipment is 
                originally placed in service.''.

    (h) Regulations for Baseline Carbon Oxide Production.--Subsection 
(i) of section 45Q, as redesignated by subsection (d), is amended--
            (1) in paragraph (1), by striking ``and'',
            (2) in paragraph (2), by striking the period at the end and 
        inserting ``, and'', and

[[Page 136 STAT. 1929]]

            (3) by adding at the end the following new paragraph:
            ``(3) for purposes of subsection (d)(2)(B)(ii), adjust the 
        baseline carbon oxide production with respect to any applicable 
        electric generating unit at any electricity generating facility 
        if, after the date on which the carbon capture equipment is 
        placed in service, modifications which are chargeable to capital 
        account are made to such unit which result in a significant 
        increase or decrease in carbon oxide production.''.

    (i) <<NOTE: Applicability. 26 USC 45Q note.>>  Effective Dates.--
            (1) In general.--Except as provided in paragraphs (2), (3), 
        and (4), the amendments made by this section shall apply to 
        facilities or equipment placed in service after December 31, 
        2022.
            (2) Modification of carbon oxide capture requirements.--The 
        amendments made by subsection (a) shall apply to facilities or 
        equipment the construction of which begins after the date of 
        enactment of this Act.
            (3) Application of section for certain carbon capture 
        equipment.--The amendments made by subsection (f) shall take 
        effect on the date of enactment of this Act.
            (4) Election.--The amendments made by subsection (g) shall 
        apply to carbon oxide captured and disposed of after December 
        31, 2021.
SEC. 13105. ZERO-EMISSION NUCLEAR POWER PRODUCTION CREDIT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
is amended by adding at the end the following new section:
``SEC. 45U. <<NOTE: 26 USC 45U.>>  ZERO-EMISSION NUCLEAR POWER 
                        PRODUCTION CREDIT.

    ``(a) Amount of Credit.--For purposes of section 38, the zero-
emission nuclear power production credit for any taxable year is an 
amount equal to the amount by which--
            ``(1) the product of--
                    ``(A) 0.3 cents, multiplied by
                    ``(B) the kilowatt hours of electricity--
                          ``(i) produced by the taxpayer at a qualified 
                      nuclear power facility, and
                          ``(ii) sold by the taxpayer to an unrelated 
                      person during the taxable year, exceeds
            ``(2) the reduction amount for such taxable year.

    ``(b) Definitions.--
            ``(1) Qualified nuclear power facility.--For purposes of 
        this section, the term `qualified nuclear power facility' means 
        any nuclear facility--
                    ``(A) which is owned by the taxpayer and which uses 
                nuclear energy to produce electricity,
                    ``(B) which is not an advanced nuclear power 
                facility as defined in subsection (d)(1) of section 45J, 
                and
                    ``(C) which is placed in service before the date of 
                the enactment of this section.
            ``(2) Reduction amount.--
                    ``(A) In general.--For purposes of this section, the 
                term `reduction amount' means, with respect to any 
                qualified nuclear power facility for any taxable year, 
                the amount equal to the lesser of--
                          ``(i) the amount determined under subsection 
                      (a)(1), or

[[Page 136 STAT. 1930]]

                          ``(ii) the amount equal to 16 percent of the 
                      excess of--
                                    ``(I) subject to subparagraph (B), 
                                the gross receipts from any electricity 
                                produced by such facility (including any 
                                electricity services or products 
                                provided in conjunction with the 
                                electricity produced by such facility) 
                                and sold to an unrelated person during 
                                such taxable year, over
                                    ``(II) the amount equal to the 
                                product of--
                                            ``(aa) 2.5 cents, multiplied 
                                        by
                                            ``(bb) the amount determined 
                                        under subsection (a)(1)(B).
                    ``(B) Treatment of certain receipts.--
                          ``(i) In general.--Subject to clause (iii), 
                      the amount determined under subparagraph 
                      (A)(ii)(I) shall include any amount received by 
                      the taxpayer during the taxable year with respect 
                      to the qualified nuclear power facility from a 
                      zero-emission credit program. 
                      For <<NOTE: Determination.>>  purposes of 
                      determining the amount received during such 
                      taxable year, the taxpayer shall take into account 
                      any reductions required under such program.
                          ``(ii) Zero-emission credit program.--For 
                      purposes of this subparagraph, the term `zero-
                      emission credit program' means any payments with 
                      respect to a qualified nuclear power facility as a 
                      result of any Federal, State or local government 
                      program for, in whole or in part, the zero-
                      emission, zero-carbon, or air quality attributes 
                      of any portion of the electricity produced by such 
                      facility.
                          ``(iii) Exclusion.--For purposes of clause 
                      (i), any amount received by the taxpayer from a 
                      zero-emission credit program shall be excluded 
                      from the amount determined under subparagraph 
                      (A)(ii)(I) if the full amount of the credit 
                      calculated pursuant to subsection (a) (determined 
                      without regard to this subparagraph) is used to 
                      reduce payments from such zero-emission credit 
                      program.
            ``(3) Electricity.--For purposes of this section, the term 
        `electricity' means the energy produced by a qualified nuclear 
        power facility from the conversion of nuclear fuel into electric 
        power.

    ``(c) Other Rules.--
            ``(1) Inflation adjustment.--The 0.3 cent amount in 
        subsection (a)(1)(A) and the 2.5 cent amount in subsection 
        (b)(2)(A)(ii)(II)(aa) shall each be adjusted by multiplying such 
        amount by the inflation adjustment factor (as determined under 
        section 45(e)(2), as applied by substituting `calendar year 
        2023' for `calendar year 1992' in subparagraph (B) thereof) for 
        the calendar year in which the sale occurs. If the 0.3 cent 
        amount as increased under this paragraph is not a multiple of 
        0.05 cent, such amount shall be rounded to the nearest multiple 
        of 0.05 cent. If the 2.5 cent amount as increased under this 
        paragraph is not a multiple of 0.1 cent, such amount shall be 
        rounded to the nearest multiple of 0.1 cent.
            ``(2) <<NOTE: Applicability.>>  Special rules.--Rules 
        similar to the rules of paragraphs (1), (3), (4), and (5) of 
        section 45(e) shall apply for purposes of this section.

[[Page 136 STAT. 1931]]

    ``(d) Wage Requirements.--
            ``(1) Increased credit amount for qualified nuclear power 
        facilities.--In the case of any qualified nuclear power facility 
        which satisfies the requirements of paragraph (2)(A), the amount 
        of the credit determined under subsection (a) shall be equal to 
        such amount (as determined without regard to this sentence) 
        multiplied by 5.
            ``(2) Prevailing wage requirements.--
                    ``(A) <<NOTE: Determination.>>  In general.--The 
                requirements described in this subparagraph with respect 
                to any qualified nuclear power facility are that the 
                taxpayer shall ensure that any laborers and mechanics 
                employed by the taxpayer or any contractor or 
                subcontractor in the alteration or repair of such 
                facility shall be paid wages at rates not less than the 
                prevailing rates for alteration or repair of a similar 
                character in the locality in which such facility is 
                located as most recently determined by the Secretary of 
                Labor, in accordance with subchapter IV of chapter 31 of 
                title 40, United States Code.
                    ``(B) Correction and penalty related to failure to 
                satisfy wage requirements.--Rules 
                similar <<NOTE: Applicability.>>  to the rules of 
                section 45(b)(7)(B) shall apply.
            ``(3) <<NOTE: Determination. Requirements. Records.>>  
        Regulations and guidance.--The Secretary shall issue such 
        regulations or other guidance as the Secretary determines 
        necessary to carry out the purposes of this subsection, 
        including regulations or other guidance which provides for 
        requirements for recordkeeping or information reporting for 
        purposes of administering the requirements of this subsection.

    ``(e) Termination.--This section shall not apply to taxable years 
beginning after December 31, 2032.''.
    (b) Conforming Amendments.--
            (1) <<NOTE: 26 USC 38.>>  Section 38(b) is amended--
                    (A) in paragraph (32), by striking ``plus'' at the 
                end,
                    (B) in paragraph (33), by striking the period at the 
                end and inserting ``, plus'', and
                    (C) by adding at the end the following new 
                paragraph:
            ``(34) the zero-emission nuclear power production credit 
        determined under section 45U(a).''.
            (2) The table of sections for subpart D of part IV of 
        subchapter A of chapter 1 <<NOTE: 26 USC 38 prec.>>  is amended 
        by adding at the end the following new item:

``Sec. 45U. Zero-emission nuclear power production credit.''.

    (c) <<NOTE: 26 USC 45U note.>>  Effective Date.--This section shall 
apply to electricity produced and sold after December 31, 2023, in 
taxable years beginning after such date.

                           PART 2--CLEAN FUELS

SEC. 13201. EXTENSION OF INCENTIVES FOR BIODIESEL, RENEWABLE 
                            DIESEL AND ALTERNATIVE FUELS.

    (a) Biodiesel and Renewable Diesel Credit.--Section 40A(g) is 
amended by striking ``December 31, 2022'' and inserting ``December 31, 
2024''.
    (b) Biodiesel Mixture Credit.--
            (1) In general.--Section 6426(c)(6) is amended by striking 
        ``December 31, 2022'' and inserting ``December 31, 2024''.

[[Page 136 STAT. 1932]]

            (2) Fuels not used for taxable purposes.--Section 
        6427(e)(6)(B) is amended <<NOTE: 26 USC 6427.>>  by striking 
        ``December 31, 2022'' and inserting ``December 31, 2024''.

    (c) Alternative Fuel Credit.--Section 6426(d)(5) is amended by 
striking ``December 31, 2021'' and inserting ``December 31, 2024''.
    (d) Alternative Fuel Mixture Credit.--Section 6426(e)(3) is amended 
by striking ``December 31, 2021'' and inserting ``December 31, 2024''.
    (e) Payments for Alternative Fuels.--Section 6427(e)(6)(C) is 
amended by striking ``December 31, 2021'' and inserting ``December 31, 
2024''.
    (f) <<NOTE: 26 USC 40A note.>>  Effective Date.--The amendments made 
by this section shall apply to fuel sold or used after December 31, 
2021.

    (g) <<NOTE: Effective date. Deadlines. Claims. 26 USC 6426 note.>>  
Special Rule.--In the case of any alternative fuel credit properly 
determined under section 6426(d) of the Internal Revenue Code of 1986 
for the period beginning on January 1, 2022, and ending with the close 
of the last calendar quarter beginning before the date of the enactment 
of this Act, such credit shall be allowed, and any refund or payment 
attributable to such credit (including any payment under section 6427(e) 
of such Code) shall be made, only in such manner as the Secretary of the 
Treasury (or the Secretary's delegate) shall 
provide. <<NOTE: Guidelines.>>  Such Secretary shall issue guidance 
within 30 days after the date of the enactment of this Act providing for 
a one-time submission of claims covering periods described in the 
preceding sentence. <<NOTE: Guidelines.>>  Such guidance shall provide 
for a 180-day period for the submission of such claims (in such manner 
as prescribed by such Secretary) to begin not later than 30 days after 
such guidance is issued. Such claims shall be paid by such Secretary not 
later than 60 days after receipt. <<NOTE: Determination.>>  If such 
Secretary has not paid pursuant to a claim filed under this subsection 
within 60 days after the date of the filing of such claim, the claim 
shall be paid with interest from such date determined by using the 
overpayment rate and method under section 6621 of such Code.
SEC. 13202. EXTENSION OF SECOND GENERATION BIOFUEL INCENTIVES.

    (a) In General.--Section 40(b)(6)(J)(i) is amended by striking 
``2022'' and inserting ``2025''.
    (b) <<NOTE: 26 USC 40 note.>>  Effective Date.--The amendment made 
by subsection (a) shall apply to qualified second generation biofuel 
production after December 31, 2021.
SEC. 13203. SUSTAINABLE AVIATION FUEL CREDIT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
is amended by inserting after section 40A the following new section:
``SEC. 40B. <<NOTE: Definitions. 26 USC 40B.>>  SUSTAINABLE 
                        AVIATION FUEL CREDIT.

    ``(a) In General.--For purposes of section 38, the sustainable 
aviation fuel credit determined under this section for the taxable year 
is, with respect to any sale or use of a qualified mixture which occurs 
during such taxable year, an amount equal to the product of--
            ``(1) the number of gallons of sustainable aviation fuel in 
        such mixture, multiplied by
            ``(2) the sum of--
                    ``(A) $1.25, plus

[[Page 136 STAT. 1933]]

                    ``(B) <<NOTE: Applicability.>>  the applicable 
                supplementary amount with respect to such sustainable 
                aviation fuel.

    ``(b) Applicable Supplementary Amount.--For purposes of this 
section, the term `applicable supplementary amount' means, with respect 
to any sustainable aviation fuel, an amount equal to $0.01 for each 
percentage point by which the lifecycle greenhouse gas emissions 
reduction percentage with respect to such fuel exceeds 50 percent. In no 
event shall the applicable supplementary amount determined under this 
subsection exceed $0.50.
    ``(c) Qualified Mixture.--For purposes of this section, the term 
`qualified mixture' means a mixture of sustainable aviation fuel and 
kerosene if--
            ``(1) such mixture is produced by the taxpayer in the United 
        States,
            ``(2) such mixture is used by the taxpayer (or sold by the 
        taxpayer for use) in an aircraft,
            ``(3) such sale or use is in the ordinary course of a trade 
        or business of the taxpayer, and
            ``(4) the transfer of such mixture to the fuel tank of such 
        aircraft occurs in the United States.

    ``(d) Sustainable Aviation Fuel.--
            ``(1) In general.--For purposes of this section, the term 
        `sustainable aviation fuel' means liquid fuel, the portion of 
        which is not kerosene, which--
                    ``(A) meets the requirements of--
                          ``(i) ASTM International Standard D7566, or
                          ``(ii) the Fischer Tropsch provisions of ASTM 
                      International Standard D1655, Annex A1,
                    ``(B) is not derived from coprocessing an applicable 
                material (or materials derived from an applicable 
                material) with a feedstock which is not biomass,
                    ``(C) is not derived from palm fatty acid 
                distillates or petroleum, and
                    ``(D) has been certified in accordance with 
                subsection (e) as having a lifecycle greenhouse gas 
                emissions reduction percentage of at least 50 percent.
            ``(2) Definitions.--In this subsection--
                    ``(A) Applicable material.--The term `applicable 
                material' means--
                          ``(i) monoglycerides, diglycerides, and 
                      triglycerides,
                          ``(ii) free fatty acids, and
                          ``(iii) fatty acid esters.
                    ``(B) Biomass.--The term `biomass' has the same 
                meaning given such term in section 45K(c)(3).

    ``(e) Lifecycle Greenhouse Gas Emissions Reduction Percentage.--For 
purposes of this section, the term `lifecycle greenhouse gas emissions 
reduction percentage' means, with respect to any sustainable aviation 
fuel, the percentage reduction in lifecycle greenhouse gas emissions 
achieved by such fuel as compared with petroleum-based jet fuel, as 
defined in accordance with--
            ``(1) the most recent Carbon Offsetting and Reduction Scheme 
        for International Aviation which has been adopted by the 
        International Civil Aviation Organization with the agreement of 
        the United States, or
            ``(2) any similar methodology which satisfies the criteria 
        under section 211(o)(1)(H) of the Clean Air Act (42 U.S.C.

[[Page 136 STAT. 1934]]

        7545(o)(1)(H)), as in effect on the date of enactment of this 
        section.

    ``(f) Registration of Sustainable Aviation Fuel Producers.--No 
credit shall be allowed under this section with respect to any 
sustainable aviation fuel unless the producer or importer of such fuel--
            ``(1) is registered with the Secretary under section 4101, 
        and
            ``(2) provides--
                    
                ``(A) <<NOTE: Certification. Compliance. Requirements.>> 
                 certification (in such form and manner as the Secretary 
                shall prescribe) from an unrelated party demonstrating 
                compliance with--
                          ``(i) any general requirements, supply chain 
                      traceability requirements, and information 
                      transmission requirements established under the 
                      Carbon Offsetting and Reduction Scheme for 
                      International Aviation described in paragraph (1) 
                      of subsection (e), or
                          ``(ii) in the case of any methodology 
                      established under paragraph (2) of such 
                      subsection, requirements similar to the 
                      requirements described in clause (i), and
                    ``(B) such other information with respect to such 
                fuel as the Secretary may require for purposes of 
                carrying out this section.

    ``(g) Coordination With Credit Against Excise Tax.--The amount of 
the credit determined under this section with respect to any sustainable 
aviation fuel shall, under rules prescribed by the Secretary, be 
properly reduced to take into account any benefit provided with respect 
to such sustainable aviation fuel solely by reason of the application of 
section 6426 or 6427(e).
    ``(h) Termination.--This section shall not apply to any sale or use 
after December 31, 2024.''.
    (b) Credit Made Part of General Business Credit.-- Section 38(b), as 
amended by the preceding provisions of this Act, <<NOTE: 26 USC 38.>>  
is amended by striking ``plus'' at the end of paragraph (33), by 
striking the period at the end of paragraph (34) and inserting ``, 
plus'', and by inserting after paragraph (34) the following new 
paragraph:
            ``(35) the sustainable aviation fuel credit determined under 
        section 40B.''.

    (c) Coordination With Biodiesel Incentives.--
            (1) In general.--Section 40A(d)(1) is amended by inserting 
        ``or 40B'' after ``determined under section 40''.
            (2) Conforming amendment.--Section 40A(f) is amended by 
        striking paragraph (4).

    (d) Sustainable Aviation Fuel Added to Credit for Alcohol Fuel, 
Biodiesel, and Alternative Fuel Mixtures.--
            (1) In general.--Section 6426 is amended by adding at the 
        end the following new subsection:

    ``(k) Sustainable Aviation Fuel Credit.--
            ``(1) In general.--For purposes of this section, the 
        sustainable aviation fuel credit for the taxable year is, with 
        respect to any sale or use of a qualified mixture, an amount 
        equal to the product of--
                    ``(A) the number of gallons of sustainable aviation 
                fuel in such mixture, multiplied by
                    ``(B) the sum of--

[[Page 136 STAT. 1935]]

                          ``(i) $1.25, plus
                          ``(ii) <<NOTE: Applicability.>>  the 
                      applicable supplementary amount with respect to 
                      such sustainable aviation fuel.
            ``(2) Definitions.--Any term used in this subsection which 
        is also used in section 40B shall have the meaning given such 
        term by section 40B.
            ``(3) <<NOTE: Applicability.>>  Registration requirement.--
        For purposes of this subsection, rules similar to the rules of 
        section 40B(f) shall apply.''.
            (2) Conforming amendments.--
                    (A) <<NOTE: 26 USC 6426.>>  Section 6426 is 
                amended--
                          (i) in subsection (a)(1), by striking ``and 
                      (e)'' and inserting ``(e), and (k)'', and
                          (ii) in subsection (h), by striking ``under 
                      section 40 or 40A'' and inserting ``under section 
                      40, 40A, or 40B''.
                    (B) Section 6427(e) is amended--
                          (i) in the heading, by striking ``or 
                      Alternative Fuel'' and inserting, ``Alternative 
                      Fuel, or Sustainable Aviation Fuel'',
                          (ii) in paragraph (1), by inserting ``or the 
                      sustainable aviation fuel mixture credit'' after 
                      ``alternative fuel mixture credit'', and
                          (iii) in paragraph (6)--
                                    (I) in subparagraph (C), by striking 
                                ``and'' at the end,
                                    (II) in subparagraph (D), by 
                                striking the period at the end and 
                                inserting ``, and'', and
                                    (III) by adding at the end the 
                                following new subparagraph:
                    ``(E) any qualified mixture of sustainable aviation 
                fuel (as defined in section 6426(k)(3)) sold or used 
                after December 31, 2024.''.
                    (C) Section 4101(a)(1) is amended by inserting 
                ``every person producing or importing sustainable 
                aviation fuel (as defined in section 40B),'' before 
                ``and every person producing second generation 
                biofuel''.
                    (D) The table of sections for subpart D of 
                subchapter A of chapter 1 is <<NOTE: 26 USC 38 prec.>>  
                amended by inserting after the item relating to section 
                40A the following new item:

``Sec. 40B. Sustainable aviation fuel credit.''.

    (e) Amount of Credit Included in Gross Income.--Section 87 is 
amended by striking ``and'' in paragraph (1), by striking the period at 
the end of paragraph (2) and inserting ``, and'', and by adding at the 
end the following new paragraph:
            ``(3) the sustainable aviation fuel credit determined with 
        respect to the taxpayer for the taxable year under section 
        40B(a).''.

    (f) <<NOTE: 26 USC 40B note.>>  Effective Date.--The amendments made 
by this section shall apply to fuel sold or used after December 31, 
2022.
SEC. 13204. CLEAN HYDROGEN.

    (a) Credit for Production of Clean Hydrogen.--
            (1) In general.--Subpart D of part IV of subchapter A of 
        chapter 1, as amended by the preceding provisions of this Act, 
        is amended by adding at the end the following new section:

[[Page 136 STAT. 1936]]

``SEC. 45V. <<NOTE: 26 USC 45V.>>  CREDIT FOR PRODUCTION OF CLEAN 
                        HYDROGEN.

    ``(a) Amount of Credit.--For purposes of section 38, the clean 
hydrogen production credit for any taxable year is an amount equal to 
the product of--
            ``(1) <<NOTE: Time period.>>  the kilograms of qualified 
        clean hydrogen produced by the taxpayer during such taxable year 
        at a qualified clean hydrogen production facility during the 10-
        year period beginning on the date such facility was originally 
        placed in service, multiplied by
            ``(2) the applicable amount (as determined under subsection 
        (b)) with respect to such hydrogen.

    ``(b) Applicable Amount.--
            ``(1) In general.--For purposes of subsection (a)(2), the 
        applicable amount shall be an amount equal to the applicable 
        percentage of $0.60. If any amount as determined under the 
        preceding sentence is not a multiple of 0.1 cent, such amount 
        shall be rounded to the nearest multiple of 0.1 cent.
            ``(2) <<NOTE: Determination.>>  Applicable percentage.--For 
        purposes of paragraph (1), the applicable percentage shall be 
        determined as follows:
                    ``(A) In the case of any qualified clean hydrogen 
                which is produced through a process that results in a 
                lifecycle greenhouse gas emissions rate of--
                          ``(i) not greater than 4 kilograms of CO2e per 
                      kilogram of hydrogen, and
                          ``(ii) not less than 2.5 kilograms of CO2e per 
                      kilogram of hydrogen,
                the applicable percentage shall be 20 percent.
                    ``(B) In the case of any qualified clean hydrogen 
                which is produced through a process that results in a 
                lifecycle greenhouse gas emissions rate of--
                          ``(i) less than 2.5 kilograms of CO2e per 
                      kilogram of hydrogen, and
                          ``(ii) not less than 1.5 kilograms of CO2e per 
                      kilogram of hydrogen,
                the applicable percentage shall be 25 percent.
                    ``(C) In the case of any qualified clean hydrogen 
                which is produced through a process that results in a 
                lifecycle greenhouse gas emissions rate of--
                          ``(i) less than 1.5 kilograms of CO2e per 
                      kilogram of hydrogen, and
                          ``(ii) not less than 0.45 kilograms of CO2e 
                      per kilogram of hydrogen,
                the applicable percentage shall be 33.4 percent.
                    ``(D) In the case of any qualified clean hydrogen 
                which is produced through a process that results in a 
                lifecycle greenhouse gas emissions rate of less than 
                0.45 kilograms of CO2e per kilogram of hydrogen, the 
                applicable percentage shall be 100 percent.
            ``(3) Inflation adjustment.--The $0.60 amount in paragraph 
        (1) shall be adjusted by multiplying such amount by the 
        inflation adjustment factor (as determined under section 
        45(e)(2), determined by substituting `2022' for `1992' in 
        subparagraph (B) thereof) for the calendar year in which the 
        qualified clean hydrogen is produced. If any amount as increased 
        under the preceding sentence is not a multiple of 0.1 cent, such 
        amount shall be rounded to the nearest multiple of 0.1 cent.

    ``(c) Definitions.--For purposes of this section--

[[Page 136 STAT. 1937]]

            ``(1) Lifecycle greenhouse gas emissions.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                term `lifecycle greenhouse gas emissions' has the same 
                meaning given such term under subparagraph (H) of 
                section 211(o)(1) of the Clean Air Act (42 U.S.C. 
                7545(o)(1)), as in effect on the date of enactment of 
                this section.
                    ``(B) GREET model.--The term `lifecycle greenhouse 
                gas emissions' shall only include emissions through the 
                point of production (well-to-gate), as determined under 
                the most recent Greenhouse gases, Regulated Emissions, 
                and Energy use in Transportation model (commonly 
                referred to as the `GREET model') developed by Argonne 
                National Laboratory, or a successor model (as determined 
                by the Secretary).
            ``(2) Qualified clean hydrogen.--
                    ``(A) In general.--The term `qualified clean 
                hydrogen' means hydrogen which is produced through a 
                process that results in a lifecycle greenhouse gas 
                emissions rate of not greater than 4 kilograms of CO2e 
                per kilogram of hydrogen.
                    ``(B) Additional requirements.--Such term shall not 
                include any hydrogen unless--
                          ``(i) such hydrogen is produced--
                                    ``(I) in the United States (as 
                                defined in section 638(1)) or a 
                                possession of the United States (as 
                                defined in section 638(2)),
                                    ``(II) in the ordinary course of a 
                                trade or business of the taxpayer, and
                                    ``(III) for sale or use, and
                          ``(ii) the production and sale or use of such 
                      hydrogen is verified by an unrelated party.
                    ``(C) <<NOTE: Determination.>>  Provisional 
                emissions rate.--In the case of any hydrogen for which a 
                lifecycle greenhouse gas emissions rate has not been 
                determined for purposes of this section, a taxpayer 
                producing such hydrogen may file a petition with the 
                Secretary for determination of the lifecycle greenhouse 
                gas emissions rate with respect to such hydrogen.
            ``(3) Qualified clean hydrogen production facility.--The 
        term `qualified clean hydrogen production facility' means a 
        facility--
                    ``(A) owned by the taxpayer,
                    ``(B) which produces qualified clean hydrogen, and
                    ``(C) <<NOTE: Effective date.>>  the construction of 
                which begins before January 1, 2033.

    ``(d) Special Rules.--
            ``(1) Treatment of facilities owned by more than 1 
        taxpayer.--Rules similar <<NOTE: Applicability.>>  to the rules 
        section 45(e)(3) shall apply for purposes of this section.
            ``(2) Coordination with credit for carbon oxide 
        sequestration.--No credit shall be allowed under this section 
        with respect to any qualified clean hydrogen produced at a 
        facility which includes carbon capture equipment for which a 
        credit is allowed to any taxpayer under section 45Q for the 
        taxable year or any prior taxable year.

    ``(e) Increased Credit Amount for Qualified Clean Hydrogen 
Production Facilities.--
            ``(1) In general.--In the case of any qualified clean 
        hydrogen production facility which satisfies the requirements

[[Page 136 STAT. 1938]]

        of paragraph (2), the amount of the credit determined under 
        subsection (a) with respect to qualified clean hydrogen 
        described in subsection (b)(2) shall be equal to such amount 
        (determined without regard to this sentence) multiplied by 5.
            ``(2) Requirements.--A facility meets the requirements of 
        this paragraph if it is one of the following:
                    ``(A) A facility--
                          ``(i) <<NOTE: Effective date. Time 
                      period. Publication. Guidelines.>>  the 
                      construction of which begins prior to the date 
                      that is 60 days after the Secretary publishes 
                      guidance with respect to the requirements of 
                      paragraphs (3)(A) and (4), and
                          ``(ii) which meets the requirements of 
                      paragraph (3)(A) with respect to alteration or 
                      repair of such facility which occurs after such 
                      date.
                    ``(B) A facility which satisfies the requirements of 
                paragraphs (3)(A) and (4).
            ``(3) <<NOTE: Applicability.>>  Prevailing wage 
        requirements.--
                    ``(A) <<NOTE: Determination.>>  In general.--The 
                requirements described in this subparagraph with respect 
                to any qualified clean hydrogen production facility are 
                that the taxpayer shall ensure that any laborers and 
                mechanics employed by the taxpayer or any contractor or 
                subcontractor in--
                          ``(i) the construction of such facility, and
                          ``(ii) with respect to any taxable year, for 
                      any portion of such taxable year which is within 
                      the period described in subsection (a)(2), the 
                      alteration or repair of such facility,
                shall be paid wages at rates not less than the 
                prevailing rates for construction, alteration, or repair 
                of a similar character in the locality in which such 
                facility is located as most recently determined by the 
                Secretary of Labor, in accordance with subchapter IV of 
                chapter 31 of title 40, United States Code. For purposes 
                of determining an increased credit amount under 
                paragraph (1) for a taxable year, the requirement under 
                clause (ii) of this subparagraph is applied to such 
                taxable year in which the alteration or repair of 
                qualified facility occurs.
                    ``(B) Correction and penalty related to failure to 
                satisfy wage requirements.--Rules similar to the rules 
                of section 45(b)(7)(B) shall apply.
            ``(4) <<NOTE: Applicability.>>  Apprenticeship 
        requirements.--Rules similar to the rules of section 45(b)(8) 
        shall apply.
            ``(5) <<NOTE: Determination. Requirements. Records.>>  
        Regulations and guidance.--The Secretary shall issue such 
        regulations or other guidance as the Secretary determines 
        necessary to carry out the purposes of this subsection, 
        including regulations or other guidance which provides for 
        requirements for recordkeeping or information reporting for 
        purposes of administering the requirements of this subsection.

    ``(f) <<NOTE: Deadline. Guidelines. Determinations.>>  
Regulations.--Not later than 1 year after the date of enactment of this 
section, the Secretary shall issue regulations or other guidance to 
carry out the purposes of this section, including regulations or other 
guidance for determining lifecycle greenhouse gas emissions.''.
            (2) Credit reduced for tax-exempt bonds.--Section 45V(d), as 
        added by this section, <<NOTE: 26 USC 45V.>>  is amended by 
        adding at the end the following new paragraph:

[[Page 136 STAT. 1939]]

            ``(3) <<NOTE: Applicability.>>  Credit reduced for tax-
        exempt bonds.--Rules similar to the rule under section 45(b)(3) 
        shall apply for purposes of this section.''.
            (3) Modification of existing facilities.--Section 45V(d), as 
        added and amended by the preceding provisions of this 
        section, <<NOTE: 26 USC 45V.>>  is amended by adding at the end 
        the following new paragraph:
            ``(4) Modification of existing facilities.--For purposes of 
        subsection (a)(1), in the case of any facility which--
                    ``(A) <<NOTE: Effective date.>>  was originally 
                placed in service before January 1, 2023, and, prior to 
                the modification described in subparagraph (B), did not 
                produce qualified clean hydrogen, and
                    ``(B) after the date such facility was originally 
                placed in service--
                          ``(i) is modified to produce qualified clean 
                      hydrogen, and
                          ``(ii) amounts paid or incurred with respect 
                      to such modification are properly chargeable to 
                      capital account of the taxpayer,
        such facility shall be deemed to have been originally placed in 
        service as of the date that the property required to complete 
        the modification described in subparagraph (B) is placed in 
        service.''.
            (4) Conforming amendments.--
                    (A) Section 38(b), as amended by the preceding 
                provisions of this Act, is amended--
                          (i) in paragraph (34), by striking ``plus'' at 
                      the end,
                          (ii) in paragraph (35), by striking the period 
                      at the end and inserting ``, plus'', and
                          (iii) by adding at the end the following new 
                      paragraph:
            ``(36) the clean hydrogen production credit determined under 
        section 45V(a).''.
                    (B) The table of sections for subpart D of part IV 
                of subchapter A of chapter 1, as amended by the 
                preceding provisions of this Act, <<NOTE: 26 USC 38 
                prec.>>  is amended by adding at the end the following 
                new item:

``Sec. 45V. Credit for production of clean hydrogen.''.

            (5) <<NOTE: Applicability. 26 USC 45V note.>>  Effective 
        dates.--
                    (A) In general.--The amendments made by paragraphs 
                (1) and (4) of this subsection shall apply to hydrogen 
                produced after December 31, 2022.
                    (B) Credit reduced for tax-exempt bonds.--The 
                amendment made by paragraph (2) shall apply to 
                facilities the construction of which begins after the 
                date of enactment of this Act.
                    (C) Modification of existing facilities.--The 
                amendment made by paragraph (3) shall apply to 
                modifications made after December 31, 2022.

    (b) Credit for Electricity Produced From Renewable Resources Allowed 
if Electricity Is Used to Produce Clean Hydrogen.--
            (1) In general.--Section 45(e), as amended by the preceding 
        provisions of this Act, is amended by adding at the end the 
        following new paragraph:

[[Page 136 STAT. 1940]]

            ``(13) Special rule for electricity used at a qualified 
        clean hydrogen production facility.--Electricity produced by the 
        taxpayer shall be treated as sold by such taxpayer to an 
        unrelated person during the taxable year if--
                    ``(A) such electricity is used during such taxable 
                year by the taxpayer or a person related to the taxpayer 
                at a qualified clean hydrogen production facility (as 
                defined in section 45V(c)(3)) to produce qualified clean 
                hydrogen (as defined in section 45V(c)(2)), and
                    ``(B) such use and production is verified (in such 
                form or manner as the Secretary may prescribe) by an 
                unrelated third party.''.
            (2) Similar rule for zero-emission nuclear power production 
        credit.--Subsection (c)(2) of section 45U, as added by section 
        13105 of this Act, <<NOTE: 26 USC 45U.>>  is amended by striking 
        ``and (5)'' and inserting ``(5), and (13)''.
            (3) <<NOTE: 26 USC 45 note.>>  Effective date.--The 
        amendments made by this subsection shall apply to electricity 
        produced after December 31, 2022.

    (c) Election to Treat Clean Hydrogen Production Facilities as Energy 
Property.--
            (1) In general.--Section 48(a), as amended by the preceding 
        provisions of this Act, is amended--
                    (A) by redesignating paragraph (15) as paragraph 
                (16), and
                    (B) by inserting after paragraph (14) the following 
                new paragraph:
            ``(15) Election to treat clean hydrogen production 
        facilities as energy property.--
                    ``(A) In general.--In the case of any qualified 
                property (as defined in paragraph (5)(D)) which is part 
                of a specified clean hydrogen production facility--
                          ``(i) such property shall be treated as energy 
                      property for purposes of this section, and
                          ``(ii) the energy percentage with respect to 
                      such property is--
                                    ``(I) in the case of a facility 
                                which is designed and reasonably 
                                expected to produce qualified clean 
                                hydrogen which is described in a 
                                subparagraph (A) of section 45V(b)(2), 
                                1.2 percent,
                                    ``(II) in the case of a facility 
                                which is designed and reasonably 
                                expected to produce qualified clean 
                                hydrogen which is described in a 
                                subparagraph (B) of such section, 1.5 
                                percent,
                                    ``(III) in the case of a facility 
                                which is designed and reasonably 
                                expected to produce qualified clean 
                                hydrogen which is described in a 
                                subparagraph (C) of such section, 2 
                                percent, and
                                    ``(IV) in the case of a facility 
                                which is designed and reasonably 
                                expected to produce qualified clean 
                                hydrogen which is described in 
                                subparagraph (D) of such section, 6 
                                percent.
                    ``(B) Denial of production credit.--No credit shall 
                be allowed under section 45V or section 45Q for any 
                taxable year with respect to any specified clean 
                hydrogen production facility or any carbon capture 
                equipment included at such facility.

[[Page 136 STAT. 1941]]

                    ``(C) Specified clean hydrogen production 
                facility.--For purposes <<NOTE: Definition.>>  of this 
                paragraph, the term `specified clean hydrogen production 
                facility' means any qualified clean hydrogen production 
                facility (as defined in section 45V(c)(3))--
                          ``(i) <<NOTE: Effective date.>>  which is 
                      placed in service after December 31, 2022,
                          ``(ii) with respect to which--
                                    ``(I) no credit has been allowed 
                                under section 45V or 45Q, and
                                    ``(II) the taxpayer makes an 
                                irrevocable election to have this 
                                paragraph apply, and
                          ``(iii) <<NOTE: Verification.>>  for which an 
                      unrelated third party has verified (in such form 
                      or manner as the Secretary may prescribe) that 
                      such facility produces hydrogen through a process 
                      which results in lifecycle greenhouse gas 
                      emissions which are consistent with the hydrogen 
                      that such facility was designed and expected to 
                      produce under subparagraph (A)(ii).
                    ``(D) <<NOTE: Definition.>>  Qualified clean 
                hydrogen.--For purposes of this paragraph, the term 
                `qualified clean hydrogen' has the meaning given such 
                term by section 45V(c)(2).
                    ``(E) <<NOTE: Guidelines. Determination.>>  
                Regulations.--The Secretary shall issue such regulations 
                or other guidance as the Secretary determines necessary 
                to carry out the purposes of this section, including 
                regulations or other guidance which recaptures so much 
                of any credit allowed under this section as exceeds the 
                amount of the credit which would have been allowed if 
                the expected production were consistent with the actual 
                verified production (or all of the credit so allowed in 
                the absence of such verification).''.
            (2) Conforming amendment.--Paragraph (9)(A)(i) of section 
        48(a), as added by section 13102, <<NOTE: 26 USC 48.>>  is 
        amended by inserting ``and paragraph (15)'' after ``paragraphs 
        (1) through (8)''.
            (3) <<NOTE: Applicability. 26 USC 48 note.>>  Effective 
        date.--The amendments made by this subsection shall apply to 
        property placed in service after December 31, 2022, and, for any 
        property the construction of which begins prior to January 1, 
        2023, only to the extent of the basis thereof attributable to 
        the construction, reconstruction, or erection after December 31, 
        2022.

    (d) Termination of Excise Tax Credit for Hydrogen.--
            (1) In general.--Section 6426(d)(2) is amended by striking 
        subparagraph (D) and by redesignating subparagraphs (E), (F), 
        and (G) as subparagraphs (D), (E), and (F), respectively.
            (2) Conforming amendment.--Section 6426(e)(2) is amended by 
        striking ``(F)'' and inserting ``(E)''.
            (3) <<NOTE: 26 USC 6426 note.>>  Effective date.--The 
        amendments made by this subsection shall apply to fuel sold or 
        used after December 31, 2022.

     PART 3--CLEAN ENERGY AND EFFICIENCY INCENTIVES FOR INDIVIDUALS

SEC. 13301. EXTENSION, INCREASE, AND MODIFICATIONS OF NONBUSINESS 
                            ENERGY PROPERTY CREDIT.

    (a) Extension of Credit.--Section 25C(g)(2) is amended by striking 
``December 31, 2021'' and inserting ``December 31, 2032''.

[[Page 136 STAT. 1942]]

    (b) <<NOTE: 26 USC 25C.>>  Allowance of Credit.--Section 25C(a) is 
amended to read as follows:

    ``(a) Allowance of Credit.--In the case of an individual, there 
shall be allowed as a credit against the tax imposed by this chapter for 
the taxable year an amount equal to 30 percent of the sum of--
            ``(1) the amount paid or incurred by the taxpayer for 
        qualified energy efficiency improvements installed during such 
        taxable year, and
            ``(2) the amount of the residential energy property 
        expenditures paid or incurred by the taxpayer during such 
        taxable year.''.

    (c) Application of Annual Limitation in Lieu of Lifetime 
Limitation.--Section 25C(b) is amended to read as follows:
    ``(b) Limitations.--
            ``(1) In general.--The credit allowed under this section 
        with respect to any taxpayer for any taxable year shall not 
        exceed $1,200.
            ``(2) Energy property.--The credit allowed under this 
        section by reason of subsection (a)(2) with respect to any 
        taxpayer for any taxable year shall not exceed, with respect to 
        any item of qualified energy property, $600.
            ``(3) Windows.--The credit allowed under this section by 
        reason of subsection (a)(1) with respect to any taxpayer for any 
        taxable year shall not exceed, in the aggregate with respect to 
        all exterior windows and skylights, $600.
            ``(4) Doors.--The credit allowed under this section by 
        reason of subsection (a)(1) with respect to any taxpayer for any 
        taxable year shall not exceed--
                    ``(A) $250 in the case of any exterior door, and
                    ``(B) $500 in the aggregate with respect to all 
                exterior doors.
            ``(5) Heat pump and heat pump water heaters; biomass stoves 
        and boilers.--Notwithstanding paragraphs (1) and (2), the credit 
        allowed under this section by reason of subsection (a)(2) with 
        respect to any taxpayer for any taxable year shall not, in the 
        aggregate, exceed $2,000 with respect to amounts paid or 
        incurred for property described in clauses (i) and (ii) of 
        subsection (d)(2)(A) and in subsection (d)(2)(B).''.

    (d) Modifications Related to Qualified Energy Efficiency 
Improvements.--
            (1) Standards for energy efficient building envelope 
        components.--Section 25C(c)(2) is amended by striking ``meets--
        '' and all that follows through the period at the end and 
        inserting the following: ``meets--
                    ``(A) in the case of an exterior window or skylight, 
                Energy Star most efficient certification requirements,
                    ``(B) in the case of an exterior door, applicable 
                Energy Star requirements, and
                    ``(C) <<NOTE: Effective date.>>  in the case of any 
                other component, the prescriptive criteria for such 
                component established by the most recent International 
                Energy Conservation Code standard in effect as of the 
                beginning of the calendar year which is 2 years prior to 
                the calendar year in which such component is placed in 
                service.''.
            (2) Roofs not treated as building envelope components.--
        Section 25C(c)(3) is amended by adding ``and'' at the

[[Page 136 STAT. 1943]]

        end of subparagraph (B), by striking ``, and'' at the end of 
        subparagraph (C) and inserting a period, and by striking 
        subparagraph (D).
            (3) Air sealing insulation added to definition of building 
        envelope component.--Section 25C(c)(3)(A) <<NOTE: 26 USC 25C.>>  
        is amended by inserting ``, including air sealing material or 
        system,'' after ``material or system''.

    (e) Modification of Residential Energy Property Expenditures.--
Section 25C(d) is amended to read as follows:
    ``(d) <<NOTE: Definitions.>>  Residential Energy Property 
Expenditures.--For purposes of this section--
            ``(1) In general.--The term `residential energy property 
        expenditures' means expenditures made by the taxpayer for 
        qualified energy property which is--
                    ``(A) installed on or in connection with a dwelling 
                unit located in the United States and used as a 
                residence by the taxpayer, and
                    ``(B) originally placed in service by the taxpayer.
        Such term includes expenditures for labor costs properly 
        allocable to the onsite preparation, assembly, or original 
        installation of the property.
            ``(2) <<NOTE: Effective dates.>>  Qualified energy 
        property.--The term `qualified energy property' means any of the 
        following:
                    ``(A) Any of the following which meet or exceed the 
                highest efficiency tier (not including any advanced 
                tier) established by the Consortium for Energy 
                Efficiency which is in effect as of the beginning of the 
                calendar year in which the property is placed in 
                service:
                          ``(i) An electric or natural gas heat pump 
                      water heater.
                          ``(ii) An electric or natural gas heat pump.
                          ``(iii) A central air conditioner.
                          ``(iv) A natural gas, propane, or oil water 
                      heater.
                          ``(v) A natural gas, propane, or oil furnace 
                      or hot water boiler.
                    ``(B) A biomass stove or boiler which--
                          ``(i) uses the burning of biomass fuel to heat 
                      a dwelling unit located in the United States and 
                      used as a residence by the taxpayer, or to heat 
                      water for use in such a dwelling unit, and
                          ``(ii) has a thermal efficiency rating of at 
                      least 75 percent (measured by the higher heating 
                      value of the fuel).
                    ``(C) Any oil furnace or hot water boiler which--
                          ``(i) is placed in service after December 31, 
                      2022, and before January 1, 2027, and--
                                    ``(I) meets or exceeds 2021 Energy 
                                Star efficiency criteria, and
                                    ``(II) is rated by the manufacturer 
                                for use with fuel blends at least 20 
                                percent of the volume of which consists 
                                of an eligible fuel, or
                          ``(ii) is placed in service after December 31, 
                      2026, and--
                                    ``(I) achieves an annual fuel 
                                utilization efficiency rate of not less 
                                than 90, and

[[Page 136 STAT. 1944]]

                                    ``(II) is rated by the manufacturer 
                                for use with fuel blends at least 50 
                                percent of the volume of which consists 
                                of an eligible fuel.
                    ``(D) Any improvement to, or replacement of, a 
                panelboard, sub-panelboard, branch circuits, or feeders 
                which--
                          ``(i) is installed in a manner consistent with 
                      the National Electric Code,
                          ``(ii) has a load capacity of not less than 
                      200 amps,
                          ``(iii) is installed in conjunction with--
                                    ``(I) any qualified energy 
                                efficiency improvements, or
                                    ``(II) any qualified energy property 
                                described in subparagraphs (A) through 
                                (C) for which a credit is allowed under 
                                this section for expenditures with 
                                respect to such property, and
                          ``(iv) enables the installation and use of any 
                      property described in subclause (I) or (II) of 
                      clause (iii).
            ``(3) Eligible fuel.--For purposes of paragraph (2), the 
        term `eligible fuel' means--
                    ``(A) biodiesel and renewable diesel (within the 
                meaning of section 40A), and
                    ``(B) second generation biofuel (within the meaning 
                of section 40).''.

    (f) Home Energy Audits.--
            (1) In general.--Section 25C(a), as amended by subsection 
        (b), is amended <<NOTE: 26 USC 25C.>>  by striking ``and'' at 
        the end of paragraph (1), by striking the period at the end of 
        paragraph (2) and inserting ``, and'', and by adding at the end 
        the following new paragraph:
            ``(3) the amount paid or incurred by the taxpayer during the 
        taxable year for home energy audits.''.
            (2) Limitation.--Section 25C(b), as amended by subsection 
        (c), is amended adding at the end the following new paragraph:
            ``(6) Home energy audits.--
                    ``(A) Dollar limitation.--The amount of the credit 
                allowed under this section by reason of subsection 
                (a)(3) shall not exceed $150.
                    ``(B) Substantiation requirement.--No credit shall 
                be allowed under this section by reason of subsection 
                (a)(3) unless the taxpayer includes with the taxpayer's 
                return of tax such information or documentation as the 
                Secretary may require.''.
            (3) Home energy audits.--
                    (A) In general.--Section 25C is amended by 
                redesignating subsections (e), (f), and (g), as 
                subsections (f), (g), and (h), respectively, and by 
                inserting after subsection (d) the following new 
                subsection:

    ``(e) <<NOTE: Definition.>>  Home Energy Audits.--For purposes of 
this section, the term `home energy audit' means an inspection and 
written report with respect to a dwelling unit located in the United 
States and owned or used by the taxpayer as the taxpayer's principal 
residence (within the meaning of section 121) which--
            ``(1) <<NOTE: Cost estimates.>>  identifies the most 
        significant and cost-effective energy efficiency improvements 
        with respect to such dwelling unit, including an estimate of the 
        energy and cost savings with respect to each such improvement, 
        and

[[Page 136 STAT. 1945]]

            
        ``(2) <<NOTE: Requirements. Regulations. Guidelines. Deadline.>> 
         is conducted and prepared by a home energy auditor that meets 
        the certification or other requirements specified by the 
        Secretary in regulations or other guidance (as prescribed by the 
        Secretary not later than 365 days after the date of the 
        enactment of this subsection).''.
                    (B) <<NOTE: 26 USC 1016.>>  Conforming amendment.--
                Section 1016(a)(33) is amended by striking ``section 
                25C(f)'' and inserting ``section 25C(g)''.
            (4) Lack of substantiation treated as mathematical or 
        clerical error.--Section 6213(g)(2) is amended--
                    (A) in subparagraph (P), by striking ``and'' at the 
                end,
                    (B) in subparagraph (Q), by striking the period at 
                the end and inserting ``, and'', and
                    (C) by inserting after subparagraph (Q) the 
                following:
                    ``(R) an omission of information or documentation 
                required under section 25C(b)(6)(B) (relating to home 
                energy audits) to be included on a return.''.

    (g) Identification Number Requirement.--
            (1) In general.--Section 25C, as amended by this section, is 
        amended by redesignating subsection (h) as subsection (i) and by 
        inserting after subsection (g) the following new subsection:

    ``(h) <<NOTE: Definitions.>>  Product Identification Number 
Requirement.--
            ``(1) <<NOTE: Effective date.>>  In general.--No credit 
        shall be allowed under subsection (a) with respect to any item 
        of specified property placed in service after December 31, 2024, 
        unless--
                    ``(A) such item is produced by a qualified 
                manufacturer, and
                    ``(B) the taxpayer includes the qualified product 
                identification number of such item on the return of tax 
                for the taxable year.
            ``(2) Qualified product identification number.--For purposes 
        of this section, the term `qualified product identification 
        number' means, with respect to any item of specified property, 
        the product identification number assigned to such item by the 
        qualified manufacturer pursuant to the methodology referred to 
        in paragraph (3).
            ``(3) Qualified manufacturer.--For purposes of this section, 
        the term `qualified manufacturer' means any manufacturer of 
        specified property which enters into an agreement with the 
        Secretary which provides that such manufacturer will--
                    ``(A) assign a product identification number to each 
                item of specified property produced by such manufacturer 
                utilizing a methodology that will ensure that such 
                number (including any alphanumeric) is unique to each 
                such item (by utilizing numbers or letters which are 
                unique to such manufacturer or by such other method as 
                the Secretary may provide),
                    ``(B) label such item with such number in such 
                manner as the Secretary may provide, and
                    ``(C) <<NOTE: Reports.>>  make periodic written 
                reports to the Secretary (at such times and in such 
                manner as the Secretary may provide) of the product 
                identification numbers so assigned and including such 
                information as the Secretary may require with respect to 
                the item of specified property to which such number was 
                so assigned.

[[Page 136 STAT. 1946]]

            ``(4) Specified property.--For purposes of this subsection, 
        the term `specified property' means any qualified energy 
        property and any property described in subparagraph (B) or (C) 
        of subsection (c)(3).''.
            (2) Omission of correct product identification number 
        treated as mathematical or clerical error.--Section 6213(g)(2), 
        as amended by the preceding provisions of this Act, 
        is <<NOTE: 26 USC 6213.>>  amended--
                    (A) in subparagraph (Q), by striking ``and'' at the 
                end,
                    (B) in subparagraph (R), by striking the period at 
                the end and inserting ``, and'', and
                    (C) by inserting after subparagraph (R) the 
                following:
                    ``(S) an omission of a correct product 
                identification number required under section 25C(h) 
                (relating to credit for nonbusiness energy property) to 
                be included on a return.''.

    (h) Energy Efficient Home Improvement Credit.--
            (1) In general.--The heading for section 25C is amended by 
        striking ``nonbusiness energy property'' and inserting ``energy 
        efficient home improvement credit''.
            (2) Clerical amendment.--The table of sections for subpart A 
        of part IV of subchapter A of chapter 1 <<NOTE: 26 USC 21 
        prec.>>  is amended by striking the item relating to section 25C 
        and inserting after the item relating to section 25B the 
        following item:

``Sec. 25C. Energy efficient home improvement credit.''.

    (i) <<NOTE: Applicability. 26 USC 25C note.>>  Effective Dates.--
            (1) In general.--Except as otherwise provided by this 
        subsection, the amendments made by this section shall apply to 
        property placed in service after December 31, 2022.
            (2) Extension of credit.--The amendments made by subsection 
        (a) shall apply to property placed in service after December 31, 
        2021.
            (3) Identification number requirement.--The amendments made 
        by subsection (g) shall apply to property placed in service 
        after December 31, 2024.
SEC. 13302. RESIDENTIAL CLEAN ENERGY CREDIT.

    (a) Extension of Credit.--
            (1) In general.--Section 25D(h) is amended by striking 
        ``December 31, 2023'' and inserting ``December 31, 2034''.
            (2) Application of phaseout.--Section 25D(g) is amended--
                    (A) in paragraph (2), by striking ``before January 
                1, 2023, 26 percent, and'' and inserting ``before 
                January 1, 2022, 26 percent,'', and
                    (B) by striking paragraph (3) and by inserting after 
                paragraph (2) the following new paragraphs:
            ``(3) in the case of property placed in service after 
        December 31, 2021, and before January 1, 2033, 30 percent,
            ``(4) in the case of property placed in service after 
        December 31, 2032, and before January 1, 2034, 26 percent, and
            ``(5) in the case of property placed in service after 
        December 31, 2033, and before January 1, 2035, 22 percent.''.

    (b) Residential Clean Energy Credit for Battery Storage Technology; 
Certain Expenditures Disallowed.--
            (1) Allowance of credit.--Paragraph (6) of section 25D(a) is 
        amended to read as follows:

[[Page 136 STAT. 1947]]

            ``(6) the qualified battery storage technology 
        expenditures,''.
            (2) Definition of qualified battery storage technology 
        expenditure.--Paragraph (6) of section 25D(d) <<NOTE: 26 USC 
        25D.>>  is amended to read as follows:
            ``(6) Qualified battery storage technology expenditure.--The 
        term <<NOTE: Definition.>>  `qualified battery storage 
        technology expenditure' means an expenditure for battery storage 
        technology which--
                    ``(A) is installed in connection with a dwelling 
                unit located in the United States and used as a 
                residence by the taxpayer, and
                    ``(B) has a capacity of not less than 3 kilowatt 
                hours.''.

    (c) Conforming Amendments.--
            (1) Section 25D(d)(3) is amended by inserting ``, without 
        regard to subparagraph (D) thereof'' after ``section 48(c)(1)''.
            (2) The heading for section 25D is amended by striking 
        ``energy efficient property'' and inserting ``clean energy 
        credit''.
            (3) The table of sections for subpart A of part IV of 
        subchapter A of chapter 1 <<NOTE: 26 USC 21 prec.>>  is amended 
        by striking the item relating to section 25D and inserting the 
        following:

``Sec. 25D. Residential clean energy credit.''.

    (d) <<NOTE: Applicability. 26 USC 25D note.>>  Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to expenditures made 
        after December 31, 2021.
            (2) Residential clean energy credit for battery storage 
        technology; certain expenditures disallowed.--The amendments 
        made by subsection (b) shall apply to expenditures made after 
        December 31, 2022.
SEC. 13303. ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.

    (a) In General.--
            (1) Maximum amount of deduction.--Subsection (b) of section 
        179D is amended to read as follows:

    ``(b) Maximum Amount of Deduction.--
            ``(1) In general.--The deduction under subsection (a) with 
        respect to any building for any taxable year shall not exceed 
        the excess (if any) of--
                    ``(A) the product of--
                          ``(i) the applicable dollar value, and
                          ``(ii) the square footage of the building, 
                      over
                    ``(B) <<NOTE: Time periods.>>  the aggregate amount 
                of the deductions under subsections (a) and (f) with 
                respect to the building for the 3 taxable years 
                immediately preceding such taxable year (or, in the case 
                of any such deduction allowable to a person other than 
                the taxpayer, for any taxable year ending during the 4-
                taxable-year period ending with such taxable year).
            ``(2) Applicable dollar value.--For purposes of paragraph 
        (1)(A)(i), the applicable dollar value shall be an amount equal 
        to $0.50 increased (but not above $1.00) by $0.02 for each 
        percentage point by which the total annual energy and power 
        costs for the building are certified to be reduced by a 
        percentage greater than 25 percent.
            ``(3) Increased deduction amount for certain property.--

[[Page 136 STAT. 1948]]

                    ``(A) <<NOTE: Applicability.>>  In general.--In the 
                case of any property which satisfies the requirements of 
                subparagraph (B), paragraph (2) shall be applied by 
                substituting `$2.50' for `$0.50', `$.10' for `$.02', and 
                `$5.00' for `$1.00'.
                    ``(B) Property requirements.--In the case of any 
                energy efficient commercial building property, energy 
                efficient building retrofit property, or property 
                installed pursuant to a qualified retrofit plan, such 
                property shall meet the requirements of this 
                subparagraph if --
                          ``(i) <<NOTE: Time 
                      period. Publication. Guidelines.>>  installation 
                      of such property begins prior to the date that is 
                      60 days after the Secretary publishes guidance 
                      with respect to the requirements of paragraphs 
                      (4)(A) and (5), or
                          ``(ii) installation of such property satisfies 
                      the requirements of paragraphs (4)(A) and (5).
            ``(4) Prevailing wage requirements.--
                    ``(A) <<NOTE: Determination.>>  In general.--The 
                requirements described in this subparagraph with respect 
                to any property are that the taxpayer shall ensure that 
                any laborers and mechanics employed by the taxpayer or 
                any contractor or subcontractor in the installation of 
                any property shall be paid wages at rates not less than 
                the prevailing rates for construction, alteration, or 
                repair of a similar character in the locality in which 
                such property is located as most recently determined by 
                the Secretary of Labor, in accordance with subchapter IV 
                of chapter 31 of title 40, United States Code.
                    ``(B) <<NOTE: Applicability.>>  Correction and 
                penalty related to failure to satisfy wage 
                requirements.--Rules similar to the rules of section 
                45(b)(7)(B) shall apply.
            ``(5) <<NOTE: Applicability.>>  Apprenticeship 
        requirements.--Rules similar to the rules of section 45(b)(8) 
        shall apply.
            
        ``(6) <<NOTE: Guidelines. Determination. Requirements. Records.>> 
         Regulations.--The Secretary shall issue such regulations or 
        other guidance as the Secretary determines necessary to carry 
        out the purposes of this subsection, including regulations or 
        other guidance which provides for requirements for recordkeeping 
        or information reporting for purposes of administering the 
        requirements of this subsection.''.
            (2) Modification of efficiency standard.--Section 
        179D(c)(1)(D) is <<NOTE: 26 USC 179D.>>  amended by striking 
        ``50 percent'' and inserting ``25 percent''.
            (3) Reference standard.--Section 179D(c)(2) is amended by 
        striking ``the most recent'' and inserting the following: ``the 
        more recent of--
                    ``(A) Standard 90.1-2007 published by the American 
                Society of Heating, Refrigerating, and Air Conditioning 
                Engineers and the Illuminating Engineering Society of 
                North America, or
                    ``(B) the most recent''.
            (4) Final determination; extension of period; placed in 
        service deadline.--Subparagraph (B) of section 179D(c)(2), as 
        amended by paragraph (3), is amended--
                    (A) by inserting ``for which the Department of 
                Energy has issued a final determination and'' before 
                ``which has been affirmed'',
                    (B) by striking ``2 years'' and inserting ``4 
                years'', and

[[Page 136 STAT. 1949]]

                    (C) by striking ``that construction of such property 
                begins'' and inserting ``such property is placed in 
                service''.
            (5) Elimination of partial allowance.--
                    (A) <<NOTE: 26 USC 179D.>>  In general.--Section 
                179D(d) is amended--
                          (i) by striking paragraph (1), and
                          (ii) by redesignating paragraphs (2) through 
                      (6) as paragraphs (1) through (5), respectively.
                    (B) Conforming amendments.--
                          (i) Section 179D(c)(1)(D) is amended--
                                    (I) by striking ``subsection 
                                (d)(6)'' and inserting ``subsection 
                                (d)(5)'', and
                                    (II) by striking ``subsection 
                                (d)(2)'' and inserting ``subsection 
                                (d)(1)''.
                          (ii) Paragraph (2)(A) of section 179D(d), as 
                      redesignated by subparagraph (A), is amended by 
                      striking ``paragraph (2)'' and inserting 
                      ``paragraph (1)''.
                          (iii) Paragraph (4) of section 179D(d), as 
                      redesignated by subparagraph (A), is amended by 
                      striking ``paragraph (3)(B)(iii)'' and inserting 
                      ``paragraph (2)(B)(iii)''.
                          (iv) Section 179D is amended by striking 
                      subsection (f).
                          (v) Section 179D(h) is amended by striking 
                      ``or (d)(1)(A)''.
            (6) Allocation of deduction by certain tax-exempt 
        entities.--Paragraph (3) of section 179D(d), as redesignated by 
        paragraph (5)(A), is amended to read as follows:
            ``(3) Allocation of deduction by certain tax-exempt 
        entities.--
                    ``(A) <<NOTE: Regulations. Guidelines.>>  In 
                general.--In the case of energy efficient commercial 
                building property installed on or in property owned by a 
                specified tax-exempt entity, the Secretary shall 
                promulgate regulations or guidance to allow the 
                allocation of the deduction to the person primarily 
                responsible for designing the property in lieu of the 
                owner of such property. Such person shall be treated as 
                the taxpayer for purposes of this section.
                    ``(B) <<NOTE: Definition.>>  Specified tax-exempt 
                entity.--For purposes of this paragraph, the term 
                `specified tax-exempt entity' means--
                          ``(i) the United States, any State or 
                      political subdivision thereof, any possession of 
                      the United States, or any agency or 
                      instrumentality of any of the foregoing,
                          ``(ii) an Indian tribal government (as defined 
                      in section 30D(g)(9)) or Alaska Native Corporation 
                      (as defined in section 3 of the Alaska Native 
                      Claims Settlement Act (43 U.S.C. 1602(m)), and
                          ``(iii) any organization exempt from tax 
                      imposed by this chapter.''.
            (7) Alternative deduction for energy efficient building 
        retrofit property.--Section 179D, as amended by the preceding 
        provisions of this section, is amended by inserting after 
        subsection (e) the following new subsection:

    ``(f) <<NOTE: Definitions.>>  Alternative Deduction for Energy 
Efficient Building Retrofit Property.--

[[Page 136 STAT. 1950]]

            ``(1) <<NOTE: Determinations.>>  In general.--In the case of 
        a taxpayer which elects (at such time and in such manner as the 
        Secretary may provide) the application of this subsection with 
        respect to any qualified building, there shall be allowed as a 
        deduction for the taxable year which includes the date of the 
        qualifying final certification with respect to the qualified 
        retrofit plan of such building, an amount equal to the lesser 
        of--
                    ``(A) the excess described in subsection (b) 
                (determined by substituting `energy use intensity' for 
                `total annual energy and power costs' in paragraph (2) 
                thereof), or
                    ``(B) the aggregate adjusted basis (determined after 
                taking into account all adjustments with respect to such 
                taxable year other than the reduction under subsection 
                (e)) of energy efficient building retrofit property 
                placed in service by the taxpayer pursuant to such 
                qualified retrofit plan.
            ``(2) <<NOTE: Certifications.>>  Qualified retrofit plan.--
        For purposes of this subsection, the term `qualified retrofit 
        plan' means a written plan prepared by a qualified professional 
        which specifies modifications to a building which, in the 
        aggregate, are expected to reduce such building's energy use 
        intensity by 25 percent or more in comparison to the baseline 
        energy use intensity of such building. Such plan shall provide 
        for a qualified professional to--
                    ``(A) <<NOTE: Time period.>>  as of any date during 
                the 1-year period ending on the date on which the 
                property installed pursuant to such plan is placed in 
                service, certify the energy use intensity of such 
                building as of such date,
                    ``(B) certify the status of property installed 
                pursuant to such plan as meeting the requirements of 
                subparagraphs (B) and (C) of paragraph (3), and
                    ``(C) as of any date that is more than 1 year after 
                the date on which the property installed pursuant to 
                such plan is placed in service, certify the energy use 
                intensity of such building as of such date.
            ``(3) Energy efficient building retrofit property.--For 
        purposes of this subsection, the term `energy efficient building 
        retrofit property' means property--
                    ``(A) with respect to which depreciation (or 
                amortization in lieu of depreciation) is allowable,
                    ``(B) which is installed on or in any qualified 
                building,
                    ``(C) which is installed as part of--
                          ``(i) the interior lighting systems,
                          ``(ii) the heating, cooling, ventilation, and 
                      hot water systems, or
                          ``(iii) the building envelope, and
                    ``(D) <<NOTE: Certification.>>  which is certified 
                in accordance with paragraph (2)(B) as meeting the 
                requirements of subparagraphs (B) and (C).
            ``(4) Qualified building.--For purposes of this subsection, 
        the term `qualified building' means any building which--
                    ``(A) is located in the United States, and
                    ``(B) <<NOTE: Time period.>>  was originally placed 
                in service not less than 5 years before the 
                establishment of the qualified retrofit plan with 
                respect to such building.
            ``(5) Qualifying final certification.--For purposes of this 
        subsection, the term `qualifying final certification' means,

[[Page 136 STAT. 1951]]

        with respect to any qualified retrofit plan, the certification 
        described in paragraph (2)(C) if the energy use intensity 
        certified in such certification is not more than 75 percent of 
        the baseline energy use intensity of the building.
            ``(6) Baseline energy use intensity.--
                    ``(A) In general.--For purposes of this subsection, 
                the term `baseline energy use intensity' means the 
                energy use intensity certified under paragraph (2)(A), 
                as adjusted to take into account weather.
                    ``(B) Determination of adjustment.--For purposes of 
                subparagraph (A), the adjustments described in such 
                subparagraph shall be determined in such manner as the 
                Secretary may provide.
            ``(7) Other definitions.--For purposes of this subsection--
                    ``(A) <<NOTE: Determination.>>  Energy use 
                intensity.--The term `energy use intensity' means the 
                annualized, measured site energy use intensity 
                determined in accordance with such regulations or other 
                guidance as the Secretary may provide and measured in 
                British thermal units.
                    ``(B) Qualified professional.--The term `qualified 
                professional' means an individual who is a licensed 
                architect or a licensed engineer and meets such other 
                requirements as the Secretary may provide.
            ``(8) Coordination with deduction otherwise allowed under 
        subsection (a).--
                    ``(A) In general.--In the case of any building with 
                respect to which an election is made under paragraph 
                (1), the term `energy efficient commercial building 
                property' shall not include any energy efficient 
                building retrofit property with respect to which a 
                deduction is allowable under this subsection.
                    ``(B) Certain rules not applicable.--
                          ``(i) In general.--Except as provided in 
                      clause (ii), subsection (d) shall not apply for 
                      purposes of this subsection.
                          ``(ii) Allocation of deduction by certain tax-
                      exempt entities.--Rules 
                      similar <<NOTE: Applicability.>>  to subsection 
                      (d)(3) shall apply for purposes of this 
                      subsection.''.
            (8) <<NOTE: 26 USC 179D.>>  Inflation adjustment.--Section 
        179D(g) is amended--
                    (A) by striking ``2020'' and inserting ``2022'',
                    (B) by striking ``or subsection (d)(1)(A)'', and
                    (C) by striking ``2019'' and inserting ``2021''.

    (b) Application to Real Estate Investment Trust Earnings and 
Profits.--Section 312(k)(3)(B) is amended--
            (1) by striking ``For purposes of computing the earnings and 
        profits of a corporation'' and inserting the following:
                          ``(i) In general.--For purposes of computing 
                      the earnings and profits of a corporation, except 
                      as provided in clause (ii)'', and
            (2) by adding at the end the following new clause:
                          ``(ii) Special rule.--In the case of a 
                      corporation that is a real estate investment 
                      trust, any amount deductible under section 179D 
                      shall be allowed in the year in which the property 
                      giving rise to such deduction is placed in service 
                      (or, in the case of energy efficient building 
                      retrofit property, the year in which the 
                      qualifying final certification is made).''.

[[Page 136 STAT. 1952]]

    (c) <<NOTE: Deadlines.>>  Conforming Amendment.--Paragraph (1) of 
section 179D(d), as redesignated by subsection (a)(5)(A), <<NOTE: 26 USC 
179D.>>  is amended by striking ``not later than the date that is 2 
years before the date that construction of such property begins'' and 
inserting ``not later than the date that is 4 years before the date such 
property is placed in service''.

    (d) <<NOTE: Applicability. 26 USC 179D note.>>  Effective Date.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply to 
        taxable years beginning after December 31, 2022.
            (2) Alternative deduction for energy efficient building 
        retrofit property.--Subsection (f) of section 179D of the 
        Internal Revenue Code of 1986 (as amended by this section), and 
        any other provision of such section solely for purposes of 
        applying such subsection, shall apply to property placed in 
        service after December 31, 2022 (in taxable years ending after 
        such date) if such property is placed in service pursuant to 
        qualified retrofit plan (within the meaning of such section) 
        established after such date.
SEC. 13304. EXTENSION, INCREASE, AND MODIFICATIONS OF NEW ENERGY 
                            EFFICIENT HOME CREDIT.

    (a) Extension of Credit.--Section 45L(g) is amended by striking 
``December 31, 2021'' and inserting ``December 31, 2032''.
    (b) Increase in Credit Amounts.--Paragraph (2) of section 45L(a) is 
amended to read as follows:
            ``(2) <<NOTE: Requirements.>>  Applicable amount.--For 
        purposes of paragraph (1), the applicable amount is an amount 
        equal to--
                    ``(A) in the case of a dwelling unit which is 
                eligible to participate in the Energy Star Residential 
                New Construction Program or the Energy Star Manufactured 
                New Homes program--
                          ``(i) which meets the requirements of 
                      subsection (c)(1)(A) (and which does not meet the 
                      requirements of subsection (c)(1)(B)), $2,500, and
                          ``(ii) which meets the requirements of 
                      subsection (c)(1)(B), $5,000, and
                    ``(B) in the case of a dwelling unit which is part 
                of a building eligible to participate in the Energy Star 
                Multifamily New Construction Program--
                          ``(i) which meets the requirements of 
                      subsection (c)(1)(A) (and which does not meet the 
                      requirements of subsection (c)(1)(B)), $500, and
                          ``(ii) which meets the requirements of 
                      subsection (c)(1)(B), $1,000.''.

    (c) Modification of Energy Saving Requirements.--Section 45L(c) is 
amended to read as follows:
    ``(c) <<NOTE: Effective dates. Time periods.>>  Energy Saving 
Requirements.--
            ``(1) In general.--
                    ``(A) In general.--A dwelling unit meets the 
                requirements of this subparagraph if such dwelling unit 
                meets the requirements of paragraph (2) or (3) 
                (whichever is applicable).
                    ``(B) <<NOTE: Certification.>>  Zero energy ready 
                home program.--A dwelling unit meets the requirements of 
                this subparagraph if such dwelling unit is certified as 
                a zero energy ready home

[[Page 136 STAT. 1953]]

                under the zero energy ready home program of the 
                Department of Energy as in effect on January 1, 2023 (or 
                any successor program determined by the Secretary).
            ``(2) Single-family home requirements.--A dwelling unit 
        meets the requirements of this paragraph if--
                    ``(A) such dwelling unit meets--
                          ``(i)(I) in the case of a dwelling unit 
                      acquired before January 1, 2025, the Energy Star 
                      Single-Family New Homes National Program 
                      Requirements 3.1, or
                          ``(II) in the case of a dwelling unit acquired 
                      after December 31, 2024, the Energy Star Single-
                      Family New Homes National Program Requirements 
                      3.2, and
                          ``(ii) the most recent Energy Star Single-
                      Family New Homes Program Requirements applicable 
                      to the location of such dwelling unit (as in 
                      effect on the latter of January 1, 2023, or 
                      January 1 of two calendar years prior to the date 
                      the dwelling unit was acquired), or
                    ``(B) such dwelling unit meets the most recent 
                Energy Star Manufactured Home National program 
                requirements as in effect on the latter of January 1, 
                2023, or January 1 of two calendar years prior to the 
                date such dwelling unit is acquired.
            ``(3) Multi-family home requirements.--A dwelling unit meets 
        the requirements of this paragraph if--
                    ``(A) such dwelling unit meets the most recent 
                Energy Star Multifamily New Construction National 
                Program Requirements (as in effect on either January 1, 
                2023, or January 1 of three calendar years prior to the 
                date the dwelling was acquired, whichever is later), and
                    ``(B) such dwelling unit meets the most recent 
                Energy Star Multifamily New Construction Regional 
                Program Requirements applicable to the location of such 
                dwelling unit (as in effect on either January 1, 2023, 
                or January 1 of three calendar years prior to the date 
                the dwelling was acquired, whichever is later).''.

    (d) <<NOTE: 26 USC 45L.>>  Prevailing Wage Requirement.--Section 45L 
is amended by redesignating subsection (g) as subsection (h) and by 
inserting after subsection (f) the following new subsection:

    ``(g) Prevailing Wage Requirement.--
            ``(1) In general.--In the case of a qualifying residence 
        described in subsection (a)(2)(B) meeting the prevailing wage 
        requirements of paragraph (2)(A), the credit amount allowed with 
        respect to such residence shall be--
                    ``(A) $2,500 in the case of a residence which meets 
                the requirements of subparagraph (A) of subsection 
                (c)(1) (and which does not meet the requirements of 
                subparagraph (B) of such subsection), and
                    ``(B) $5,000 in the case of a residence which meets 
                the requirements of subsection (c)(1)(B).
            ``(2) Prevailing wage requirements.--
                    ``(A) <<NOTE: Determination.>>  In general.--The 
                requirements described in this subparagraph with respect 
                to any qualified residence are that the taxpayer shall 
                ensure that any laborers and mechanics employed by the 
                taxpayer or any contractor or subcontractor in the 
                construction of such residence shall be paid wages at 
                rates not less than the prevailing rates

[[Page 136 STAT. 1954]]

                for construction, alteration, or repair of a similar 
                character in the locality in which such residence is 
                located as most recently determined by the Secretary of 
                Labor, in accordance with subchapter IV of chapter 31 of 
                title 40, United States Code.
                    ``(B) <<NOTE: Applicability.>>  Correction and 
                penalty related to failure to satisfy wage 
                requirements.--Rules similar to the rules of section 
                45(b)(7)(B) shall apply.
            ``(3) <<NOTE: Determination. Requirements. Records.>>  
        Regulations and guidance.--The Secretary shall issue such 
        regulations or other guidance as the Secretary determines 
        necessary to carry out the purposes of this subsection, 
        including regulations or other guidance which provides for 
        requirements for recordkeeping or information reporting for 
        purposes of administering the requirements of this 
        subsection.''.

    (e) <<NOTE: 26 USC 45L.>>  Basis Adjustment.--Section 45L(e) is 
amended by inserting after the first sentence the following: ``This 
subsection shall not apply for purposes of determining the adjusted 
basis of any building under section 42.''.

    (f) <<NOTE: Applicability. 26 USC 45L note.>>  Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to dwelling units 
        acquired after December 31, 2022.
            (2) Extension of credit.--The amendments made by subsection 
        (a) shall apply to dwelling units acquired after December 31, 
        2021.

                         PART 4--CLEAN VEHICLES

SEC. 13401. CLEAN VEHICLE CREDIT.

    (a) <<NOTE: Determinations.>>  Per Vehicle Dollar Limitation.--
Section 30D(b) is amended by striking paragraphs (2) and (3) and 
inserting the following:
            ``(2) Critical minerals.--In the case of a vehicle with 
        respect to which the requirement described in subsection 
        (e)(1)(A) is satisfied, the amount determined under this 
        paragraph is $3,750.
            ``(3) Battery components.--In the case of a vehicle with 
        respect to which the requirement described in subsection 
        (e)(2)(A) is satisfied, the amount determined under this 
        paragraph is $3,750.''.

    (b) Final Assembly.--Section 30D(d) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (E), by striking ``and'' at the 
                end,
                    (B) in subparagraph (F)(ii), by striking the period 
                at the end and inserting ``, and'', and
                    (C) by adding at the end the following:
                    ``(G) the final assembly of which occurs within 
                North America.'',
            (2) by adding at the end the following:
            ``(5) <<NOTE: Definition.>>  Final assembly.--For purposes 
        of paragraph (1)(G), the term `final assembly' means the process 
        by which a manufacturer produces a new clean vehicle at, or 
        through the use of, a plant, factory, or other place from which 
        the vehicle is delivered to a dealer or importer with all 
        component parts necessary for the mechanical operation of the 
        vehicle included with the vehicle, whether or not the component 
        parts are permanently installed in or on the vehicle.''.

[[Page 136 STAT. 1955]]

    (c) Definition of New Clean Vehicle.--
            (1) In general.--Section 30D(d), as amended by the preceding 
        provisions of this section, is amended-- <<NOTE: 26 USC 30D.>> 
                    (A) in the heading, by striking ``Qualified Plug-in 
                Electric Drive Motor'' and inserting ``Clean'',
                    (B) in paragraph (1)--
                          (i) in the matter preceding subparagraph (A), 
                      by striking ``qualified plug-in electric drive 
                      motor'' and inserting ``clean'',
                          (ii) in subparagraph (C), by inserting 
                      ``qualified'' before ``manufacturer'',
                          (iii) in subparagraph (F)--
                                    (I) in clause (i), by striking ``4'' 
                                and inserting ``7'', and
                                    (II) in clause (ii), by striking 
                                ``and'' at the end,
                          (iv) in subparagraph (G), by striking the 
                      period at the end and inserting ``, and'', and
                          (v) by adding at the end the following:
                    ``(H) for which the person who sells any vehicle to 
                the taxpayer furnishes a report to the taxpayer and to 
                the Secretary, at such time and in such manner as the 
                Secretary shall provide, containing--
                          ``(i) the name and taxpayer identification 
                      number of the taxpayer,
                          ``(ii) the vehicle identification number of 
                      the vehicle, unless, in accordance with any 
                      applicable rules promulgated by the Secretary of 
                      Transportation, the vehicle is not assigned such a 
                      number,
                          ``(iii) the battery capacity of the vehicle,
                          ``(iv) verification that original use of the 
                      vehicle commences with the taxpayer, and
                          ``(v) the maximum credit under this section 
                      allowable to the taxpayer with respect to the 
                      vehicle.'',
                    (C) in paragraph (3)--
                          (i) in the heading, by striking 
                      ``Manufacturer'' and inserting ``Qualified 
                      manufacturer'',
                          (ii) by striking ``The term `manufacturer' has 
                      the meaning given such term in'' and inserting 
                      ``The term `qualified manufacturer' means any 
                      manufacturer (within the meaning of the'', and
                          (iii) by inserting ``) which enters into a 
                      written agreement with the Secretary under which 
                      such manufacturer agrees to make periodic written 
                      reports to the Secretary (at such times and in 
                      such manner as the Secretary may provide) 
                      providing vehicle identification numbers and such 
                      other information related to each vehicle 
                      manufactured by such manufacturer as the Secretary 
                      may require'' before the period at the end, and
                    (D) by adding at the end the following:
            ``(6) New qualified fuel cell motor vehicle.--For purposes 
        of this section, the term `new clean vehicle' shall include any 
        new qualified fuel cell motor vehicle (as defined in section 
        30B(b)(3)) which meets the requirements under subparagraphs (G) 
        and (H) of paragraph (1).''.
            (2) Conforming amendments.--Section 30D is amended--

[[Page 136 STAT. 1956]]

                    (A) in subsection (a), by striking ``new qualified 
                plug-in electric drive motor vehicle'' and inserting 
                ``new clean vehicle'', and
                    (B) in subsection (b)(1), by striking ``new 
                qualified plug-in electric drive motor vehicle'' and 
                inserting ``new clean vehicle''.

    (d) Elimination of Limitation on Number of Vehicles Eligible for 
Credit.--Section <<NOTE: 26 USC 30D.>>  30D is amended by striking 
subsection (e).

    (e) Critical Mineral and Battery Component Requirements.--
            (1) In general.--Section 30D, as amended by the preceding 
        provisions of this section, is amended by inserting after 
        subsection (d) the following:

    ``(e) <<NOTE: Effective dates. Time periods.>>  Critical Mineral and 
Battery Component Requirements.--
            ``(1) Critical minerals requirement.--
                    ``(A) In general.--The requirement described in this 
                subparagraph with respect to a vehicle is that, with 
                respect to the battery from which the electric motor of 
                such vehicle draws electricity, the percentage of the 
                value of the applicable critical minerals (as defined in 
                section 45X(c)(6)) contained in such battery that were--
                          ``(i) extracted or processed--
                                    ``(I) in the United States, or
                                    ``(II) in any country with which the 
                                United States has a free trade agreement 
                                in effect, or
                          ``(ii) recycled in North America,
                is equal to or greater than the applicable percentage 
                (as certified by the qualified manufacturer, in such 
                form or manner as prescribed by the Secretary).
                    ``(B) Applicable percentage.--For purposes of 
                subparagraph (A), the applicable percentage shall be--
                          ``(i) in the case of a vehicle placed in 
                      service after the date on which the proposed 
                      guidance described in paragraph (3)(B) is issued 
                      by the Secretary and before January 1, 2024, 40 
                      percent,
                          ``(ii) in the case of a vehicle placed in 
                      service during calendar year 2024, 50 percent,
                          ``(iii) in the case of a vehicle placed in 
                      service during calendar year 2025, 60 percent,
                          ``(iv) in the case of a vehicle placed in 
                      service during calendar year 2026, 70 percent, and
                          ``(v) in the case of a vehicle placed in 
                      service after December 31, 2026, 80 percent.
            ``(2) Battery components.--
                    ``(A) In general.--The requirement described in this 
                subparagraph with respect to a vehicle is that, with 
                respect to the battery from which the electric motor of 
                such vehicle draws electricity, the percentage of the 
                value of the components contained in such battery that 
                were manufactured or assembled in North America is equal 
                to or greater than the applicable percentage (as 
                certified by the qualified manufacturer, in such form or 
                manner as prescribed by the Secretary).
                    ``(B) Applicable percentage.--For purposes of 
                subparagraph (A), the applicable percentage shall be--

[[Page 136 STAT. 1957]]

                          ``(i) in the case of a vehicle placed in 
                      service after the date on which the proposed 
                      guidance described in paragraph (3)(B) is issued 
                      by the Secretary and before January 1, 2024, 50 
                      percent,
                          ``(ii) in the case of a vehicle placed in 
                      service during calendar year 2024 or 2025, 60 
                      percent,
                          ``(iii) in the case of a vehicle placed in 
                      service during calendar year 2026, 70 percent,
                          ``(iv) in the case of a vehicle placed in 
                      service during calendar year 2027, 80 percent,
                          ``(v) in the case of a vehicle placed in 
                      service during calendar year 2028, 90 percent,
                          ``(vi) in the case of a vehicle placed in 
                      service after December 31, 2028, 100 percent.
            ``(3) Regulations and guidance.--
                    ``(A) <<NOTE: Determination.>> In general.--The 
                Secretary shall issue such regulations or other guidance 
                as the Secretary determines necessary to carry out the 
                purposes of this subsection, including regulations or 
                other guidance which provides for requirements for 
                recordkeeping or information reporting for purposes of 
                administering the requirements of this subsection.
                    ``(B) Deadline for proposed guidance.--Not later 
                than December 31, 2022, the Secretary shall issue 
                proposed guidance with respect to the requirements under 
                this subsection.''.
            (2) Excluded entities.--Section 30D(d), as amended by the 
        preceding provisions of this section, <<NOTE: 26 USC 30D.>>  is 
        amended by adding at the end the following:
            ``(7) <<NOTE: Effective dates.>>  Excluded entities.--For 
        purposes of this section, the term `new clean vehicle' shall not 
        include--
                    ``(A) any vehicle placed in service after December 
                31, 2024, with respect to which any of the applicable 
                critical minerals contained in the battery of such 
                vehicle (as described in subsection (e)(1)(A)) were 
                extracted, processed, or recycled by a foreign entity of 
                concern (as defined in section 40207(a)(5) of the 
                Infrastructure Investment and Jobs Act (42 U.S.C. 
                18741(a)(5))), or
                    ``(B) any vehicle placed in service after December 
                31, 2023, with respect to which any of the components 
                contained in the battery of such vehicle (as described 
                in subsection (e)(2)(A)) were manufactured or assembled 
                by a foreign entity of concern (as so defined).''.

    (f) Special Rules.--Section 30D(f) is amended by adding at the end 
the following:
            ``(8) One credit per vehicle.--In the case of any vehicle, 
        the credit described in subsection (a) shall only be allowed 
        once with respect to such vehicle, as determined based upon the 
        vehicle identification number of such vehicle.
            ``(9) VIN requirement.--No credit shall be allowed under 
        this section with respect to any vehicle unless the taxpayer 
        includes the vehicle identification number of such vehicle on 
        the return of tax for the taxable year.
            ``(10) Limitation based on modified adjusted gross income.--
                    ``(A) In general.--No credit shall be allowed under 
                subsection (a) for any taxable year if--

[[Page 136 STAT. 1958]]

                          ``(i) the lesser of--
                                    ``(I) the modified adjusted gross 
                                income of the taxpayer for such taxable 
                                year, or
                                    ``(II) the modified adjusted gross 
                                income of the taxpayer for the preceding 
                                taxable year, exceeds
                          ``(ii) the threshold amount.
                    ``(B) Threshold amount.--For purposes of 
                subparagraph (A)(ii), the threshold amount shall be--
                          ``(i) in the case of a joint return or a 
                      surviving spouse (as defined in section 2(a)), 
                      $300,000,
                          ``(ii) in the case of a head of household (as 
                      defined in section 2(b)), $225,000, and
                          ``(iii) in the case of a taxpayer not 
                      described in clause (i) or (ii), $150,000.
                    ``(C) <<NOTE: Definition.>>  Modified adjusted gross 
                income.--For purposes of this paragraph, the term 
                `modified adjusted gross income' means adjusted gross 
                income increased by any amount excluded from gross 
                income under section 911, 931, or 933.
            ``(11) Manufacturer's suggested retail price limitation.--
                    ``(A) In general.--No credit shall be allowed under 
                subsection (a) for a vehicle with a manufacturer's 
                suggested retail price in excess of the applicable 
                limitation.
                    ``(B) Applicable limitation.--For purposes of 
                subparagraph (A), the applicable limitation for each 
                vehicle classification is as follows:
                          ``(i) Vans.--In the case of a van, $80,000.
                          ``(ii) Sport utility vehicles.--In the case of 
                      a sport utility vehicle, $80,000.
                          ``(iii) Pickup trucks.--In the case of a 
                      pickup truck, $80,000.
                          ``(iv) Other.--In the case of any other 
                      vehicle, $55,000.
                    ``(C) <<NOTE: Determination.>>  Regulations and 
                guidance.--For purposes of this paragraph, the Secretary 
                shall prescribe such regulations or other guidance as 
                the Secretary determines necessary for determining 
                vehicle classifications using criteria similar to that 
                employed by the Environmental Protection Agency and the 
                Department of the Energy to determine size and class of 
                vehicles.''.

    (g) Transfer of Credit.--
            (1) In general.--Section 30D <<NOTE: 26 USC 30D.>>  is 
        amended by striking subsection (g) and inserting the following:

    ``(g) Transfer of Credit.--
            ``(1) <<NOTE: Determination.>>  In general.--Subject to such 
        regulations or other guidance as the Secretary determines 
        necessary, if the taxpayer who acquires a new clean vehicle 
        elects the application of this subsection with respect to such 
        vehicle, the credit which would (but for this subsection) be 
        allowed to such taxpayer with respect to such vehicle shall be 
        allowed to the eligible entity specified in such election (and 
        not to such taxpayer).
            ``(2) <<NOTE: Definition.>>  Eligible entity.--For purposes 
        of this subsection, the term `eligible entity' means, with 
        respect to the vehicle for which the credit is allowed under 
        subsection (a), the dealer which sold such vehicle to the 
        taxpayer and has--

[[Page 136 STAT. 1959]]

                    ``(A) subject to paragraph (4), registered with the 
                Secretary for purposes of this paragraph, at such time, 
                and in such form and manner, as the Secretary may 
                prescribe,
                    ``(B) prior to the election described in paragraph 
                (1) and not later than at the time of such sale, 
                disclosed to the taxpayer purchasing such vehicle--
                          ``(i) the manufacturer's suggested retail 
                      price,
                          ``(ii) the value of the credit allowed and any 
                      other incentive available for the purchase of such 
                      vehicle, and
                          ``(iii) the amount provided by the dealer to 
                      such taxpayer as a condition of the election 
                      described in paragraph (1),
                    ``(C) <<NOTE: Deadline.>>  not later than at the 
                time of such sale, made payment to such taxpayer 
                (whether in cash or in the form of a partial payment or 
                down payment for the purchase of such vehicle) in an 
                amount equal to the credit otherwise allowable to such 
                taxpayer, and
                    ``(D) with respect to any incentive otherwise 
                available for the purchase of a vehicle for which a 
                credit is allowed under this section, including any 
                incentive in the form of a rebate or discount provided 
                by the dealer or manufacturer, ensured that--
                          ``(i) the availability or use of such 
                      incentive shall not limit the ability of a 
                      taxpayer to make an election described in 
                      paragraph (1), and
                          ``(ii) such election shall not limit the value 
                      or use of such incentive.
            ``(3) Timing.--An election described in paragraph (1) shall 
        be made by the taxpayer not later than the date on which the 
        vehicle for which the credit is allowed under subsection (a) is 
        purchased.
            ``(4) <<NOTE: Determination.>>  Revocation of 
        registration.--Upon determination by the Secretary that a dealer 
        has failed to comply with the requirements described in 
        paragraph (2), the Secretary may revoke the registration (as 
        described in subparagraph (A) of such paragraph) of such dealer.
            ``(5) Tax treatment of payments.--With respect to any 
        payment described in paragraph (2)(C), such payment--
                    ``(A) shall not be includible in the gross income of 
                the taxpayer, and
                    ``(B) with respect to the dealer, shall not be 
                deductible under this title.
            ``(6) Application of certain other requirements.--In the 
        case of any election under paragraph (1) with respect to any 
        vehicle--
                    ``(A) the requirements of paragraphs (1) and (2) of 
                subsection (f) shall apply to the taxpayer who acquired 
                the vehicle in the same manner as if the credit 
                determined under this section with respect to such 
                vehicle were allowed to such taxpayer,
                    ``(B) paragraph (6) of such subsection shall not 
                apply, and
                    ``(C) the requirement of paragraph (9) of such 
                subsection (f) shall be treated as satisfied if the 
                eligible entity provides the vehicle identification 
                number of such vehicle

[[Page 136 STAT. 1960]]

                to the Secretary in such manner as the Secretary may 
                provide.
            ``(7) Advance payment to registered dealers.--
                    ``(A) In general.--The Secretary shall establish a 
                program to make advance payments to any eligible entity 
                in an amount equal to the cumulative amount of the 
                credits allowed under subsection (a) with respect to any 
                vehicles sold by such entity for which an election 
                described in paragraph (1) has been made.
                    ``(B) <<NOTE: Applicability.>> Excessive payments.--
                Rules similar to the rules of section 6417(d)(6) shall 
                apply for purposes of this paragraph.
                    ``(C) Treatment of advance payments.--For purposes 
                of section 1324 of title 31, United States Code, the 
                payments under subparagraph (A) shall be treated in the 
                same manner as a refund due from a credit provision 
                referred to in subsection (b)(2) of such section.
            ``(8) <<NOTE: Definition.>>  Dealer.--For purposes of this 
        subsection, the term `dealer' means a person licensed by a 
        State, the District of Columbia, the Commonwealth of Puerto 
        Rico, any other territory or possession of the United States, an 
        Indian tribal government, or any Alaska Native Corporation (as 
        defined in section 3 of the Alaska Native Claims Settlement Act 
        (43 U.S.C. 1602(m)) to engage in the sale of vehicles.
            ``(9) <<NOTE: Definition.>>  Indian tribal government.--For 
        purposes of this subsection, the term `Indian tribal government' 
        means the recognized governing body of any Indian or Alaska 
        Native tribe, band, nation, pueblo, village, community, 
        component band, or component reservation, individually 
        identified (including parenthetically) in the list published 
        most recently as of the date of enactment of this subsection 
        pursuant to section 104 of the Federally Recognized Indian Tribe 
        List Act of 1994 (25 U.S.C. 5131).
            ``(10) Recapture.--In the case of any taxpayer who has made 
        an election described in paragraph (1) with respect to a new 
        clean vehicle and received a payment described in paragraph 
        (2)(C) from an eligible entity, if the credit under subsection 
        (a) would otherwise (but for this subsection) not be allowable 
        to such taxpayer pursuant to the application of subsection 
        (f)(10), the tax imposed on such taxpayer under this chapter for 
        the taxable year in which such vehicle was placed in service 
        shall be increased by the amount of the payment received by such 
        taxpayer.''.
            (2) Conforming amendments.--Section 30D, as amended by the 
        preceding provisions of this section, <<NOTE: 26 USC 30D.>> is 
        amended--
                    (A) in subsection (d)(1)(H) of such section--
                          (i) in clause (iv), by striking ``and'' at the 
                      end,
                          (ii) in clause (v), by striking the period at 
                      the end and inserting ``, and'', and
                          (iii) by adding at the end the following:
                          ``(vi) in the case of a taxpayer who makes an 
                      election under subsection (g)(1), any amount 
                      described in subsection (g)(2)(C) which has been 
                      provided to such taxpayer.'', and
                    (B) in subsection (f)--
                          (i) by striking paragraph (3), and

[[Page 136 STAT. 1961]]

                          (ii) in paragraph (8), by inserting ``, 
                      including any vehicle with respect to which the 
                      taxpayer elects the application of subsection 
                      (g)'' before the period at the end.

    (h) Termination.--Section 30D <<NOTE: 26 USC 30D.>>  is amended by 
adding at the end the following:

    ``(h) Termination.--No credit shall be allowed under this section 
with respect to any vehicle placed in service after December 31, 
2032.''.
    (i) Additional Conforming Amendments.--
            (1) The heading of section 30D is amended by striking ``new 
        qualified plug-in electric drive motor vehicles'' and inserting 
        ``clean vehicle credit''.
            (2) Section 30B is amended--
                    (A) in subsection (h)(8), by striking ``, except 
                that no benefit shall be recaptured if such property 
                ceases to be eligible for such credit by reason of 
                conversion to a qualified plug-in electric drive motor 
                vehicle'', and
                    (B) by striking subsection (i).
            (3) Section 38(b)(30) is amended by striking ``qualified 
        plug-in electric drive motor'' and inserting ``clean''.
            (4) Section 6213(g)(2), as amended by the preceding 
        provisions of this Act, is amended--
                    (A) in subparagraph (R), by striking ``and'' at the 
                end,
                    (B) in subparagraph (S), by striking the period at 
                the end and inserting ``, and'', and
                    (C) by inserting after subparagraph (S) the 
                following:
                    ``(T) an omission of a correct vehicle 
                identification number required under section 30D(f)(9) 
                (relating to credit for new clean vehicles) to be 
                included on a return.''.
            (5) Section 6501(m) is amended by striking ``30D(e)(4)'' and 
        inserting ``30D(f)(6)''.
            (6) The table of sections for subpart B of part IV of 
        subchapter A of chapter 1 <<NOTE: 26 USC 27 prec.>>  is amended 
        by striking the item relating to section 30D and inserting after 
        the item relating to section 30C the following item:

``Sec. 30D. Clean vehicle credit.''.

    (j) <<NOTE: Effective dates. Time periods. 26 USC 30D note.>>  
Gross-up of Direct Spending.--Beginning in fiscal year 2023 and each 
fiscal year thereafter, the portion of any credit allowed to an eligible 
entity (as defined in section 30D(g)(2) of the Internal Revenue Code of 
1986) pursuant to an election made under section 30D(g) of the Internal 
Revenue Code of 1986 that is direct spending shall be increased by 
6.0445 percent.

    (k) <<NOTE: Applicability. 26 USC 30D note.>> Effective Dates.--
            (1) In general.--Except as provided in paragraphs (2), (3), 
        (4), and (5), the amendments made by this section shall apply to 
        vehicles placed in service after December 31, 2022.
            (2) Final assembly.--The amendments made by subsection (b) 
        shall apply to vehicles sold after the date of enactment of this 
        Act.
            (3) Per vehicle dollar limitation and related 
        requirements.--The amendments made by subsections (a) and (e) 
        shall apply to vehicles placed in service after the date on 
        which the proposed guidance described in paragraph (3)(B) of 
        section 30D(e) of the Internal Revenue Code of 1986 (as added by 
        subsection (e)) is issued by the Secretary of the Treasury (or 
        the Secretary's delegate).

[[Page 136 STAT. 1962]]

            (4) Transfer of credit.--The amendments made by subsection 
        (g) shall apply to vehicles placed in service after December 31, 
        2023.
            (5) Elimination of manufacturer limitation.--The amendment 
        made by subsection (d) shall apply to vehicles sold after 
        December 31, 2022.

    (l) <<NOTE: Applicability. Effective dates. 26 USC 30D 
note.>> Transition Rule.--Solely for purposes of the application of 
section 30D of the Internal Revenue Code of 1986, in the case of a 
taxpayer that--
            (1) after December 31, 2021, and before the date of 
        enactment of this Act, purchased, or entered into a written 
        binding contract to purchase, a new qualified plug-in electric 
        drive motor vehicle (as defined in section 30D(d)(1) of the 
        Internal Revenue Code of 1986, as in effect on the day before 
        the date of enactment of this Act), and
            (2) placed such vehicle in service on or after the date of 
        enactment of this Act,

such taxpayer may elect (at such time, and in such form and manner, as 
the Secretary of the Treasury, or the Secretary's delegate, may 
prescribe) to treat such vehicle as having been placed in service on the 
day before the date of enactment of this Act.
SEC. 13402. CREDIT FOR PREVIOUSLY-OWNED CLEAN VEHICLES.

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
is amended by inserting after section 25D the following new section:
``SEC. <<NOTE: 26 USC 25E.>>  25E. PREVIOUSLY-OWNED CLEAN 
                        VEHICLES.

    ``(a) Allowance of Credit.--In the case of a qualified buyer who 
during a taxable year places in service a previously-owned clean 
vehicle, there shall be allowed as a credit against the tax imposed by 
this chapter for the taxable year an amount equal to the lesser of--
            ``(1) $4,000, or
            ``(2) the amount equal to 30 percent of the sale price with 
        respect to such vehicle.

    ``(b) Limitation Based on Modified Adjusted Gross Income.--
            ``(1) In general.--No credit shall be allowed under 
        subsection (a) for any taxable year if--
                    ``(A) the lesser of--
                          ``(i) the modified adjusted gross income of 
                      the taxpayer for such taxable year, or
                          ``(ii) the modified adjusted gross income of 
                      the taxpayer for the preceding taxable year, 
                      exceeds
                    ``(B) the threshold amount.
            ``(2) Threshold amount.--For purposes of paragraph (1)(B), 
        the threshold amount shall be--
                    ``(A) in the case of a joint return or a surviving 
                spouse (as defined in section 2(a)), $150,000,
                    ``(B) in the case of a head of household (as defined 
                in section 2(b)), $112,500, and
                    ``(C) in the case of a taxpayer not described in 
                subparagraph (A) or (B), $75,000.
            ``(3) <<NOTE: Definition.>>  Modified adjusted gross 
        income.--For purposes of this subsection, the term `modified 
        adjusted gross income' means adjusted gross income increased by 
        any amount excluded from gross income under section 911, 931, or 
        933.

[[Page 136 STAT. 1963]]

    ``(c) Definitions.--For purposes of this section--
            ``(1) Previously-owned clean vehicle.--The term `previously-
        owned clean vehicle' means, with respect to a taxpayer, a motor 
        vehicle--
                    ``(A) the model year of which is at least 2 years 
                earlier than the calendar year in which the taxpayer 
                acquires such vehicle,
                    ``(B) the original use of which commences with a 
                person other than the taxpayer,
                    ``(C) which is acquired by the taxpayer in a 
                qualified sale, and
                    ``(D) which--
                          ``(i) meets the requirements of subparagraphs 
                      (C), (D), (E), (F), and (H) (except for clause 
                      (iv) thereof) of section 30D(d)(1), or
                          ``(ii) is a motor vehicle which--
                                    ``(I) satisfies the requirements 
                                under subparagraphs (A) and (B) of 
                                section 30B(b)(3), and
                                    ``(II) has a gross vehicle weight 
                                rating of less than 14,000 pounds.
            ``(2) Qualified sale.--The term `qualified sale' means a 
        sale of a motor vehicle--
                    ``(A) by a dealer (as defined in section 30D(g)(8)),
                    ``(B) for a sale price which does not exceed 
                $25,000, and
                    ``(C) which is the first transfer since the date of 
                the enactment of this section to a qualified buyer other 
                than the person with whom the original use of such 
                vehicle commenced.
            ``(3) Qualified buyer.--The term `qualified buyer' means, 
        with respect to a sale of a motor vehicle, a taxpayer--
                    ``(A) who is an individual,
                    ``(B) who purchases such vehicle for use and not for 
                resale,
                    ``(C) with respect to whom no deduction is allowable 
                with respect to another taxpayer under section 151, and
                    ``(D) who has not been allowed a credit under this 
                section for any sale during the 3-year period ending on 
                the date of the sale of such vehicle.
            ``(4) Motor vehicle; capacity.--The terms `motor vehicle' 
        and `capacity' have the meaning given such terms in paragraphs 
        (2) and (4) of section 30D(d), respectively.

    ``(d) VIN Number Requirement.--No credit shall be allowed under 
subsection (a) with respect to any vehicle unless the taxpayer includes 
the vehicle identification number of such vehicle on the return of tax 
for the taxable year.
    ``(e) Application of Certain Rules.--For purposes of this section, 
rules similar to the rules of section 30D(f) (without regard to 
paragraph (10) or (11) thereof) shall apply for purposes of this 
section.
    ``(f) Termination.--No credit shall be allowed under this section 
with respect to any vehicle acquired after December 31, 2032.''.
    (b) Transfer of Credit.--Section 25E, as added by subsection (a), is 
amended--
            (1) by redesignating subsection (f) as subsection (g), and
            (2) by inserting after subsection (e) the following:

[[Page 136 STAT. 1964]]

    ``(f) <<NOTE: Applicability.>>  Transfer of Credit.--Rules similar 
to the rules of section 30D(g) shall apply.''.

    (c) Conforming Amendments.--Section 6213(g)(2), as amended by the 
preceding provisions of this Act, is amended--
            (1) in subparagraph (S), by striking ``and'' at the end,
            (2) in subparagraph (T), by striking the period at the end 
        and inserting ``, and'', and
            (3) by inserting after subparagraph (T) the following:
                    ``(U) an omission of a correct vehicle 
                identification number required under section 25E(d) 
                (relating to credit for previously-owned clean vehicles) 
                to be included on a return.''.

    (d) Clerical Amendment.--The table of sections for subpart A of part 
IV of subchapter A of chapter 1 <<NOTE: 26 USC 21 prec.>>  is amended by 
inserting after the item relating to section 25D the following new item:

``Sec. 25E. Previously-owned clean vehicles.''.

    (e) <<NOTE: Applicability. 26 USC 25E note.>>  Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to vehicles acquired 
        after December 31, 2022.
            (2) Transfer of credit.--The amendments made by subsection 
        (b) shall apply to vehicles acquired after December 31, 2023.
SEC. 13403. QUALIFIED COMMERCIAL CLEAN VEHICLES.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1, 
as amended by the preceding provisions of this Act, is amended by adding 
at the end the following new section:
``SEC. 45W. <<NOTE: 26 USC 45W.>>  CREDIT FOR QUALIFIED COMMERCIAL 
                        CLEAN VEHICLES.

    ``(a) In General.--For purposes of section 38, the qualified 
commercial clean vehicle credit for any taxable year is an amount equal 
to the sum of the credit amounts determined under subsection (b) with 
respect to each qualified commercial clean vehicle placed in service by 
the taxpayer during the taxable year.
    ``(b) Per Vehicle Amount.--
            ``(1) In general.--Subject to paragraph (4), the amount 
        determined under this subsection with respect to any qualified 
        commercial clean vehicle shall be equal to the lesser of--
                    ``(A) 15 percent of the basis of such vehicle (30 
                percent in the case of a vehicle not powered by a 
                gasoline or diesel internal combustion engine), or
                    ``(B) the incremental cost of such vehicle.
            ``(2) Incremental cost.--For purposes of paragraph (1)(B), 
        the incremental cost of any qualified commercial clean vehicle 
        is an amount equal to the excess of the purchase price for such 
        vehicle over such price of a comparable vehicle.
            ``(3) <<NOTE: Definition.>>  Comparable vehicle.--For 
        purposes of this subsection, the term `comparable vehicle' 
        means, with respect to any qualified commercial clean vehicle, 
        any vehicle which is powered solely by a gasoline or diesel 
        internal combustion engine and which is comparable in size and 
        use to such vehicle.
            ``(4) Limitation.--The amount determined under this 
        subsection with respect to any qualified commercial clean 
        vehicle shall not exceed--
                    ``(A) in the case of a vehicle which has a gross 
                vehicle weight rating of less than 14,000 pounds, 
                $7,500, and

[[Page 136 STAT. 1965]]

                    ``(B) in the case of a vehicle not described in 
                subparagraph (A), $40,000.

    ``(c) <<NOTE: Definition.>>  Qualified Commercial Clean Vehicle.--
For purposes of this section, the term `qualified commercial clean 
vehicle' means any vehicle which--
            ``(1) meets the requirements of section 30D(d)(1)(C) and is 
        acquired for use or lease by the taxpayer and not for resale,
            ``(2) either--
                    ``(A) meets the requirements of subparagraph (D) of 
                section 30D(d)(1) and is manufactured primarily for use 
                on public streets, roads, and highways (not including a 
                vehicle operated exclusively on a rail or rails), or
                    ``(B) is mobile machinery, as defined in section 
                4053(8) (including vehicles that are not designed to 
                perform a function of transporting a load over the 
                public highways),
            ``(3) either--
                    ``(A) is propelled to a significant extent by an 
                electric motor which draws electricity from a battery 
                which has a capacity of not less than 15 kilowatt hours 
                (or, in the case of a vehicle which has a gross vehicle 
                weight rating of less than 14,000 pounds, 7 kilowatt 
                hours) and is capable of being recharged from an 
                external source of electricity, or
                    ``(B) is a motor vehicle which satisfies the 
                requirements under subparagraphs (A) and (B) of section 
                30B(b)(3), and
            ``(4) is of a character subject to the allowance for 
        depreciation.

    ``(d) Special Rules.--
            ``(1) <<NOTE: Applicability.>> In general.--Rules similar to 
        the rules under subsection (f) of section 30D (without regard to 
        paragraph (10) or (11) thereof) shall apply for purposes of this 
        section.
            ``(2) Vehicles placed in service by tax-exempt entities.--
        Subsection (c)(4) shall not apply to any vehicle which is not 
        subject to a lease and which is placed in service by a tax-
        exempt entity described in clause (i), (ii), or (iv) of section 
        168(h)(2)(A).
            ``(3) No double benefit.--No credit shall be allowed under 
        this section with respect to any vehicle for which a credit was 
        allowed under section 30D.

    ``(e) VIN Number Requirement.--No credit shall be determined under 
subsection (a) with respect to any vehicle unless the taxpayer includes 
the vehicle identification number of such vehicle on the return of tax 
for the taxable year.
    ``(f) <<NOTE: Determination.>>  Regulations and Guidance.--The 
Secretary shall issue such regulations or other guidance as the 
Secretary determines necessary to carry out the purposes of this 
section, including regulations or other guidance relating to 
determination of the incremental cost of any qualified commercial clean 
vehicle.

    ``(g) Termination.--No credit shall be determined under this section 
with respect to any vehicle acquired after December 31, 2032.''.
    (b) Conforming Amendments.--
            (1) Section 38(b), as amended by the preceding provisions of 
        this Act, <<NOTE: 26 USC 38.>>  is amended--
                    (A) in paragraph (35), by striking ``plus'' at the 
                end,
                    (B) in paragraph (36), by striking the period at the 
                end and inserting ``, plus'', and

[[Page 136 STAT. 1966]]

                    (C) by adding at the end the following new 
                paragraph:
            ``(37) the qualified commercial clean vehicle credit 
        determined under section 45W.''.
            (2) Section 6213(g)(2), as amended by the preceding 
        provisions of this Act, <<NOTE: 26 USC 6213.>>  is amended--
                    (A) in subparagraph (T), by striking ``and'' at the 
                end,
                    (B) in subparagraph (U), by striking the period at 
                the end and inserting ``, and'', and
                    (C) by inserting after subparagraph (U) the 
                following:
                    ``(V) an omission of a correct vehicle 
                identification number required under section 45W(e) 
                (relating to commercial clean vehicle credit) to be 
                included on a return.''.
            (3) The table of sections for subpart D of part IV of 
        subchapter A of chapter 1, as amended by the preceding 
        provisions of this Act, <<NOTE: 26 USC 38 prec.>>  is amended by 
        adding at the end the following new item:

``Sec. 45W. Qualified commercial clean vehicle credit.''.

    (c) <<NOTE: 26 USC 45W note.>>  Effective Date.--The amendments made 
by this section shall apply to vehicles acquired after December 31, 
2022.
SEC. 13404. ALTERNATIVE FUEL REFUELING PROPERTY CREDIT.

    (a) In General.--Section 30C(g) is amended by striking ``December 
31, 2021'' and inserting ``December 31, 2032''.
    (b) Credit for Property of a Character Subject to Depreciation.--
            (1) In general.--Section 30C(a) is amended by inserting ``(6 
        percent in the case of property of a character subject to 
        depreciation)'' after ``30 percent''.
            (2) Modification of credit limitation.--Subsection (b) of 
        section 30C is amended--
                    (A) in the matter preceding paragraph (1)--
                          (i) by striking ``with respect to all'' and 
                      inserting ``with respect to any single item of'', 
                      and
                          (ii) by striking ``at a location'', and
                    (B) in paragraph (1), by striking ``$30,000 in the 
                case of a property'' and inserting ``$100,000 in the 
                case of any such item of property''.
            (3) Bidirectional charging equipment included as qualified 
        alternative fuel vehicle refueling property.--Section 30C(c) is 
        amended to read as follows:

    ``(c) Qualified Alternative Fuel Vehicle Refueling Property.--For 
purposes of this section--
            ``(1) <<NOTE: Definition.>> In general.--The term `qualified 
        alternative fuel vehicle refueling property' has the same 
        meaning as the term `qualified clean-fuel vehicle refueling 
        property' would have under section 179A if--
                    ``(A) paragraph (1) of section 179A(d) did not apply 
                to property installed on property which is used as the 
                principal residence (within the meaning of section 121) 
                of the taxpayer, and
                    ``(B) only the following were treated as clean-
                burning fuels for purposes of section 179A(d):
                          ``(i) Any fuel at least 85 percent of the 
                      volume of which consists of one or more of the 
                      following: ethanol, natural gas, compressed 
                      natural gas, liquified natural gas, liquefied 
                      petroleum gas, or hydrogen.
                          ``(ii) Any mixture--

[[Page 136 STAT. 1967]]

                                    ``(I) which consists of two or more 
                                of the following: biodiesel (as defined 
                                in section 40A(d)(1)), diesel fuel (as 
                                defined in section 4083(a)(3)), or 
                                kerosene, and
                                    ``(II) at least 20 percent of the 
                                volume of which consists of biodiesel 
                                (as so defined) determined without 
                                regard to any kerosene in such mixture.
                          ``(iii) Electricity.
            ``(2) Bidirectional charging equipment.--Property shall not 
        fail to be treated as qualified alternative fuel vehicle 
        refueling property solely because such property--
                    ``(A) is capable of charging the battery of a motor 
                vehicle propelled by electricity, and
                    ``(B) allows discharging electricity from such 
                battery to an electric load external to such motor 
                vehicle.''.

    (c) Certain Electric Charging Stations Included as Qualified 
Alternative Fuel Vehicle Refueling Property.--Section 30C <<NOTE: 26 USC 
30C.>>  is amended by redesignating subsections (f) and (g) as 
subsections (g) and (h), respectively, and by inserting after subsection 
(e) the following:

    ``(f) Special Rule for Electric Charging Stations for Certain 
Vehicles With 2 or 3 Wheels.--For purposes of this section--
            ``(1) <<NOTE: Definition.>>  In general.--The term 
        `qualified alternative fuel vehicle refueling property' includes 
        any property described in subsection (c) for the recharging of a 
        motor vehicle described in paragraph (2), but only if such 
        property--
                    ``(A) meets the requirements of subsection (a)(2), 
                and
                    ``(B) is of a character subject to depreciation.
            ``(2) Motor vehicle.--A motor vehicle is described in this 
        paragraph if the motor vehicle--
                    ``(A) is manufactured primarily for use on public 
                streets, roads, or highways (not including a vehicle 
                operated exclusively on a rail or rails),
                    ``(B) has 2 or 3 wheels, and
                    ``(C) is propelled by electricity.''.

    (d) Wage and Apprenticeship Requirements.--Section 30C, as amended 
by this section, is further amended by redesignating subsections (g) and 
(h) as subsections (h) and (i) and by inserting after subsection (f) the 
following new subsection:
    ``(g) Wage and Apprenticeship Requirements.--
            ``(1) Increased credit amount.--
                    ``(A) In general.--In the case of any qualified 
                alternative fuel vehicle refueling project which 
                satisfies the requirements of subparagraph (C), the 
                amount of the credit determined under subsection (a) for 
                any qualified alternative fuel vehicle refueling 
                property of a character subject to an allowance for 
                depreciation which is part of such project shall be 
                equal to such amount (determined without regard to this 
                sentence) multiplied by 5.
                    ``(B) Qualified alternative fuel vehicle refueling 
                project.-- <<NOTE: Definition.>> For purposes of this 
                subsection, the term `qualified alternative fuel vehicle 
                refueling project' means a project consisting of one or 
                more properties that are part of a single project.

[[Page 136 STAT. 1968]]

                    ``(C) Project requirements.--A project meets the 
                requirements of this subparagraph if it is one of the 
                following:
                          ``(i) <<NOTE: Time 
                      period. Publication. Guidelines.>> A project the 
                      construction of which begins prior to the date 
                      that is 60 days after the Secretary publishes 
                      guidance with respect to the requirements of 
                      paragraphs (2)(A) and (3).
                          ``(ii) A project which satisfies the 
                      requirements of paragraphs (2)(A) and (3).
            ``(2) Prevailing wage requirements.--
                    ``(A) In general.--The requirements described in 
                this subparagraph with respect to any qualified 
                alternative fuel vehicle refueling project are that the 
                taxpayer shall ensure that any laborers and mechanics 
                employed by the taxpayer or any contractor or 
                subcontractor in the construction of any qualified 
                alternative fuel vehicle refueling property which is 
                part of such project shall be paid wages at rates not 
                less than the prevailing rates for construction, 
                alteration, or repair of a similar character in the 
                locality in which such project is located as most 
                recently determined by the Secretary of Labor, in 
                accordance with subchapter IV of chapter 31 of title 40, 
                United States Code.
                    ``(B) <<NOTE: Applicability.>> Correction and 
                penalty related to failure to satisfy wage 
                requirements.--Rules similar to the rules of section 
                45(b)(7)(B) shall apply.
            ``(3) <<NOTE: Applicability.>>  Apprenticeship 
        requirements.--Rules similar to the rules of section 45(b)(8) 
        shall apply.
            
        ``(4) <<NOTE: Determination. Requirements. Records.>> Regulations
         and guidance.--The Secretary shall issue such regulations or 
        other guidance as the Secretary determines necessary to carry 
        out the purposes of this subsection, including regulations or 
        other guidance which provides for requirements for recordkeeping 
        or information reporting for purposes of administering the 
        requirements of this subsection.''.

    (e) Eligible Census Tracts.--Subsection (c) of section 30C, as 
amended by subsection (b)(3), <<NOTE: 26 USC 30C.>>  is amended by 
adding at the end the following:
            ``(3) Property required to be located in eligible census 
        tracts.--
                    ``(A) In general.--Property shall not be treated as 
                qualified alternative fuel vehicle refueling property 
                unless such property is placed in service in an eligible 
                census tract.
                    ``(B) <<NOTE: Definitions.>>  Eligible census 
                tract.--
                          ``(i) In general.--For purposes of this 
                      paragraph, the term `eligible census tract' means 
                      any population census tract which--
                                    ``(I) is described in section 
                                45D(e), or
                                    ``(II) is not an urban area.
                          ``(ii) Urban area.--For purposes of clause 
                      (i)(II), the term `urban area' means a census 
                      tract (as defined by the Bureau of the Census) 
                      which, according to the most recent decennial 
                      census, has been designated as an urban area by 
                      the Secretary of Commerce.''.

    (f) <<NOTE: Applicability. 26 USC 30C note.>>  Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to property placed 
        in service after December 31, 2022.

[[Page 136 STAT. 1969]]

            (2) Extension.--The amendments made by subsection (a) shall 
        apply to property placed in service after December 31, 2021.

  PART 5--INVESTMENT IN CLEAN ENERGY MANUFACTURING AND ENERGY SECURITY

SEC. 13501. EXTENSION OF THE ADVANCED ENERGY PROJECT CREDIT.

    (a) Extension of Credit.--Section 48C <<NOTE: 26 USC 48C.>>  is 
amended by redesignating subsection (e) as subsection (f) and by 
inserting after subsection (d) the following new subsection:

    ``(e) Additional Allocations.--
            ``(1) <<NOTE: Deadline.>>  In general.--Not later than 180 
        days after the date of enactment of this subsection, the 
        Secretary shall establish a program to consider and award 
        certifications for qualified investments eligible for credits 
        under this section to qualifying advanced energy project 
        sponsors.
            ``(2) Limitation.--The total amount of credits which may be 
        allocated under the program established under paragraph (1) 
        shall not exceed $10,000,000,000, of which not greater than 
        $6,000,000,000 may be allocated to qualified investments which 
        are not located within a census tract which--
                    ``(A) is described in clause (iii) of section 
                45(b)(11)(B), and
                    ``(B) prior to the date of enactment of this 
                subsection, had no project which received a 
                certification and allocation of credits under subsection 
                (d).
            ``(3) <<NOTE: Time period.>>  Certifications.--
                    ``(A) Application requirement.--Each applicant for 
                certification under this subsection shall submit an 
                application at such time and containing such information 
                as the Secretary may require.
                    ``(B) <<NOTE: Notification.>>  Time to meet criteria 
                for certification.--Each applicant for certification 
                shall have 2 years from the date of acceptance by the 
                Secretary of the application during which to provide to 
                the Secretary evidence that the requirements of the 
                certification have been met.
                    ``(C) Period of issuance.--An applicant which 
                receives a certification shall have 2 years from the 
                date of issuance of the certification in order to place 
                the project in service and to notify the Secretary that 
                such project has been so placed in service, and if such 
                project is not placed in service by that time period, 
                then the certification shall no longer be valid. If any 
                certification is revoked under this subparagraph, the 
                amount of the limitation under paragraph (2) shall be 
                increased by the amount of the credit with respect to 
                such revoked certification.
                    ``(D) <<NOTE: Determination.>> Location of 
                project.--In the case of an applicant which receives a 
                certification, if the Secretary determines that the 
                project has been placed in service at a location which 
                is materially different than the location specified in 
                the application for such project, the certification 
                shall no longer be valid.
            ``(4) Credit rate conditioned upon wage and apprenticeship 
        requirements.--
                    ``(A) <<NOTE: Determination.>>  Base rate.--For 
                purposes of allocations under this subsection, the 
                amount of the credit determined under

[[Page 136 STAT. 1970]]

                subsection (a) shall be determined by substituting `6 
                percent' for `30 percent'.
                    ``(B) Alternative rate.--In the case of any project 
                which satisfies the requirements of paragraphs (5)(A) 
                and (6), subparagraph (A) shall not apply.
            ``(5) Prevailing wage requirements.--
                    ``(A) In general.--The requirements described in 
                this subparagraph with respect to a project are that the 
                taxpayer shall ensure that any laborers and mechanics 
                employed by the taxpayer or any contractor or 
                subcontractor in the re-equipping, expansion, or 
                establishment of a manufacturing facility shall be paid 
                wages at rates not less than the prevailing rates for 
                construction, alteration, or repair of a similar 
                character in the locality in which such project is 
                located as most recently determined by the Secretary of 
                Labor, in accordance with subchapter IV of chapter 31 of 
                title 40, United States Code.
                    ``(B) Correction and penalty related to failure to 
                satisfy wage requirements.-- 
                <<NOTE: Applicability.>> Rules similar to the rules of 
                section 45(b)(7)(B) shall apply.
            ``(6) <<NOTE: Applicability.>>  Apprenticeship 
        requirements.--Rules similar to the rules of section 45(b)(8) 
        shall apply.
            ``(7) <<NOTE: Certification. Public information.>>  
        Disclosure of allocations.--The Secretary shall, upon making a 
        certification under this subsection, publicly disclose the 
        identity of the applicant and the amount of the credit with 
        respect to such applicant.''.

    (b) Modification of Qualifying Advanced Energy Projects.--Section 
48C(c)(1)(A) <<NOTE: 26 USC 48C.>>  is amended--
            (1) by inserting ``, any portion of the qualified investment 
        of which is certified by the Secretary under subsection (e) as 
        eligible for a credit under this section'' after ``means a 
        project'',
            (2) in clause (i)--
                    (A) by striking ``a manufacturing facility for the 
                production of'' and inserting ``an industrial or 
                manufacturing facility for the production or recycling 
                of'',
                    (B) in clause (I), by inserting ``water,'' after 
                ``sun,'',
                    (C) in clause (II), by striking ``an energy storage 
                system for use with electric or hybrid-electric motor 
                vehicles'' and inserting ``energy storage systems and 
                components'',
                    (D) in clause (III), by striking ``grids to support 
                the transmission of intermittent sources of renewable 
                energy, including storage of such energy'' and inserting 
                ``grid modernization equipment or components'',
                    (E) in subclause (IV), by striking ``and sequester 
                carbon dioxide emissions'' and inserting ``, remove, 
                use, or sequester carbon oxide emissions'',
                    (F) by striking subclause (V) and inserting the 
                following:
                                    ``(V) equipment designed to refine, 
                                electrolyze, or blend any fuel, 
                                chemical, or product which is--
                                            ``(aa) renewable, or
                                            ``(bb) low-carbon and low-
                                        emission,'',
                    (G) by striking subclause (VI),
                    (H) by redesignating subclause (VII) as subclause 
                (IX),
                    (I) by inserting after subclause (V) the following 
                new subclauses:

[[Page 136 STAT. 1971]]

                                    ``(VI) property designed to produce 
                                energy conservation technologies 
                                (including residential, commercial, and 
                                industrial applications),
                                    ``(VII) light-, medium-, or heavy-
                                duty electric or fuel cell vehicles, as 
                                well as--
                                            ``(aa) technologies, 
                                        components, or materials for 
                                        such vehicles, and
                                            ``(bb) associated charging 
                                        or refueling infrastructure,
                                    ``(VIII) hybrid vehicles with a 
                                gross vehicle weight rating of not less 
                                than 14,000 pounds, as well as 
                                technologies, components, or materials 
                                for such vehicles, or'', and
                    (J) in subclause (IX), as so redesignated, by 
                striking ``and'' at the end, and
            (3) by striking clause (ii) and inserting the following:
                          ``(ii) which re-equips an industrial or 
                      manufacturing facility with equipment designed to 
                      reduce greenhouse gas emissions by at least 20 
                      percent through the installation of--
                                    ``(I) low- or zero-carbon process 
                                heat systems,
                                    ``(II) carbon capture, transport, 
                                utilization and storage systems,
                                    ``(III) energy efficiency and 
                                reduction in waste from industrial 
                                processes, or
                                    ``(IV) any other industrial 
                                technology designed to reduce greenhouse 
                                gas emissions, as determined by the 
                                Secretary, or
                          ``(iii) which re-equips, expands, or 
                      establishes an industrial facility for the 
                      processing, refining, or recycling of critical 
                      materials (as defined in section 7002(a) of the 
                      Energy Act of 2020 (30 U.S.C. 1606(a)).''.

    (c) Conforming Amendment.--Subparagraph (A) of section 
48C(c)(2) <<NOTE: 26 USC 48C.>>  is amended to read as follows:
                    ``(A) which is necessary for--
                          ``(i) the production or recycling of property 
                      described in clause (i) of paragraph (1)(A),
                          ``(ii) re-equipping an industrial or 
                      manufacturing facility described in clause (ii) of 
                      such paragraph, or
                          ``(iii) re-equipping, expanding, or 
                      establishing an industrial facility described in 
                      clause (iii) of such paragraph,''.

    (d) Denial of Double Benefit.--48C(f), as redesignated by this 
section, is amended by striking ``or 48B'' and inserting ``48B, 48E, 
45Q, or 45V''.
    (e) <<NOTE: 26 USC 48C note.>>  Effective Date.--The amendments made 
by this section shall take effect on January 1, 2023.
SEC. 13502. ADVANCED MANUFACTURING PRODUCTION CREDIT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1, 
as amended by the preceding provisions of this Act, is amended by adding 
at the end the following new section:
``SEC. 45X. <<NOTE: 26 USC 45X.>> ADVANCED MANUFACTURING 
                        PRODUCTION CREDIT.

    ``(a) In General.--
            ``(1) Allowance of credit.--For purposes of section 38, the 
        advanced manufacturing production credit for any taxable year is 
        an amount equal to the sum of the credit amounts

[[Page 136 STAT. 1972]]

        determined under subsection (b) with respect to each eligible 
        component which is--
                    ``(A) produced by the taxpayer, and
                    ``(B) during the taxable year, sold by such taxpayer 
                to an unrelated person.
            ``(2) Production and sale must be in trade or business.--Any 
        eligible component produced and sold by the taxpayer shall be 
        taken into account only if the production and sale described in 
        paragraph (1) is in a trade or business of the taxpayer.
            ``(3) Unrelated person.--
                    ``(A) In general.--For purposes of this subsection, 
                a taxpayer shall be treated as selling components to an 
                unrelated person if such component is sold to such 
                person by a person related to the taxpayer.
                    ``(B) Election.--
                          ``(i) In general.--At the election of the 
                      taxpayer (in such form and manner as the Secretary 
                      may prescribe), a sale of components by such 
                      taxpayer to a related person shall be deemed to 
                      have been made to an unrelated person.
                          ``(ii) Requirement.--As a condition of, and 
                      prior to, any election described in clause (i), 
                      the Secretary may require such information or 
                      registration as the Secretary deems necessary for 
                      purposes of preventing duplication, fraud, or any 
                      improper or excessive amount determined under 
                      paragraph (1).

    ``(b) Credit Amount.--
            ``(1) In general.--Subject to paragraph (3), the amount 
        determined under this subsection with respect to any eligible 
        component, including any eligible component it incorporates, 
        shall be equal to--
                    ``(A) in the case of a thin film photovoltaic cell 
                or a crystalline photovoltaic cell, an amount equal to 
                the product of--
                          ``(i) 4 cents, multiplied by
                          ``(ii) the capacity of such cell (expressed on 
                      a per direct current watt basis),
                    ``(B) in the case of a photovoltaic wafer, $12 per 
                square meter,
                    ``(C) in the case of solar grade polysilicon, $3 per 
                kilogram,
                    ``(D) in the case of a polymeric backsheet, 40 cents 
                per square meter,
                    ``(E) in the case of a solar module, an amount equal 
                to the product of--
                          ``(i) 7 cents, multiplied by
                          ``(ii) the capacity of such module (expressed 
                      on a per direct current watt basis),
                    ``(F) in the case of a wind energy component--
                          ``(i) if such component is a related offshore 
                      wind vessel, an amount equal to 10 percent of the 
                      sales price of such vessel, and
                          ``(ii) if such component is not described in 
                      clause (i), an amount equal to the product of--

[[Page 136 STAT. 1973]]

                                    ``(I) the applicable amount with 
                                respect to such component (as determined 
                                under paragraph (2)(A)), multiplied by
                                    ``(II) the total rated capacity 
                                (expressed on a per watt basis) of the 
                                completed wind turbine for which such 
                                component is designed,
                    ``(G) in the case of a torque tube, 87 cents per 
                kilogram,
                    ``(H) in the case of a structural fastener, $2.28 
                per kilogram,
                    ``(I) in the case of an inverter, an amount equal to 
                the product of--
                          ``(i) the applicable amount with respect to 
                      such inverter (as determined under paragraph 
                      (2)(B)), multiplied by
                          ``(ii) the capacity of such inverter 
                      (expressed on a per alternating current watt 
                      basis),
                    ``(J) in the case of electrode active materials, an 
                amount equal to 10 percent of the costs incurred by the 
                taxpayer with respect to production of such materials,
                    ``(K) in the case of a battery cell, an amount equal 
                to the product of--
                          ``(i) $35, multiplied by
                          ``(ii) subject to paragraph (4), the capacity 
                      of such battery cell (expressed on a kilowatt-hour 
                      basis),
                    ``(L) in the case of a battery module, an amount 
                equal to the product of--
                          ``(i) $10 (or, in the case of a battery module 
                      which does not use battery cells, $45), multiplied 
                      by
                          ``(ii) subject to paragraph (4), the capacity 
                      of such battery module (expressed on a kilowatt-
                      hour basis), and
                    ``(M) in the case of any applicable critical 
                mineral, an amount equal to 10 percent of the costs 
                incurred by the taxpayer with respect to production of 
                such mineral.
            ``(2) Applicable amounts.--
                    ``(A) Wind energy components.--For purposes of 
                paragraph (1)(F)(ii), the applicable amount with respect 
                to any wind energy component shall be--
                          ``(i) in the case of a blade, 2 cents,
                          ``(ii) in the case of a nacelle, 5 cents,
                          ``(iii) in the case of a tower, 3 cents, and
                          ``(iv) in the case of an offshore wind 
                      foundation--
                                    ``(I) which uses a fixed platform, 2 
                                cents, or
                                    ``(II) which uses a floating 
                                platform, 4 cents.
                    ``(B) Inverters.--For purposes of paragraph (1)(I), 
                the applicable amount with respect to any inverter shall 
                be--
                          ``(i) in the case of a central inverter, 0.25 
                      cents,
                          ``(ii) in the case of a utility inverter, 1.5 
                      cents,
                          ``(iii) in the case of a commercial inverter, 
                      2 cents,
                          ``(iv) in the case of a residential inverter, 
                      6.5 cents, and
                          ``(v) in the case of a microinverter or a 
                      distributed wind inverter, 11 cents.
            ``(3) <<NOTE: Time periods.>>  Phase out.--
                    ``(A) <<NOTE: Effective date.>> In general.--Subject 
                to subparagraph (C), in the case of any eligible 
                component sold after December 31, 2029, the amount 
                determined under this subsection with

[[Page 136 STAT. 1974]]

                respect to such component shall be equal to the product 
                of--
                          ``(i) the amount determined under paragraph 
                      (1) with respect to such component, as determined 
                      without regard to this paragraph, multiplied by
                          ``(ii) the phase out percentage under 
                      subparagraph (B).
                    ``(B) Phase out percentage.--The phase out 
                percentage under this subparagraph is equal to--
                          ``(i) in the case of an eligible component 
                      sold during calendar year 2030, 75 percent,
                          ``(ii) in the case of an eligible component 
                      sold during calendar year 2031, 50 percent,
                          ``(iii) in the case of an eligible component 
                      sold during calendar year 2032, 25 percent,
                          ``(iv) in the case of an eligible component 
                      sold after December 31, 2032, 0 percent.
                    ``(C) <<NOTE: Determination.>>  Exception.--For 
                purposes of determining the amount under this subsection 
                with respect to any applicable critical mineral, this 
                paragraph shall not apply.
            ``(4) Limitation on capacity of battery cells and battery 
        modules.--
                    ``(A) In general.--For purposes of subparagraph 
                (K)(ii) or (L)(ii) of paragraph (1), the capacity 
                determined under either subparagraph with respect to a 
                battery cell or battery module shall not exceed a 
                capacity-to-power ratio of 100:1.
                    ``(B) <<NOTE: Definition.>> Capacity-to-power 
                ratio.--For purposes of this paragraph, the term 
                `capacity-to-power ratio' means, with respect to a 
                battery cell or battery module, the ratio of the 
                capacity of such cell or module to the maximum discharge 
                amount of such cell or module.

    ``(c) Definitions.--For purposes of this section--
            ``(1) Eligible component.--
                    ``(A) In general.--The term `eligible component' 
                means--
                          ``(i) any solar energy component,
                          ``(ii) any wind energy component,
                          ``(iii) any inverter described in 
                      subparagraphs (B) through (G) of paragraph (2),
                          ``(iv) any qualifying battery component, and
                          ``(v) any applicable critical mineral.
                    ``(B) Application with other credits.--The term 
                `eligible component' shall not include any property 
                which is produced at a facility if the basis of any 
                property which is part of such facility is taken into 
                account for purposes of the credit allowed under section 
                48C after the date of the enactment of this section.
            ``(2) Inverters.--
                    ``(A) In general.--The term `inverter' means an end 
                product which is suitable to convert direct current 
                electricity from 1 or more solar modules or certified 
                distributed wind energy systems into alternating current 
                electricity.
                    ``(B) Central inverter.--The term `central inverter' 
                means an inverter which is suitable for large utility-
                scale systems and has a capacity which is greater than 
                1,000

[[Page 136 STAT. 1975]]

                kilowatts (expressed on a per alternating current watt 
                basis).
                    ``(C) Commercial inverter.--The term `commercial 
                inverter' means an inverter which--
                          ``(i) is suitable for commercial or utility-
                      scale applications,
                          ``(ii) has a rated output of 208, 480, 600, or 
                      800 volt three-phase power, and
                          ``(iii) has a capacity which is not less than 
                      20 kilowatts and not greater than 125 kilowatts 
                      (expressed on a per alternating current watt 
                      basis).
                    ``(D) Distributed wind inverter.--
                          ``(i) In general.--The term `distributed wind 
                      inverter' means an inverter which--
                                    ``(I) is used in a residential or 
                                non-residential system which utilizes 1 
                                or more certified distributed wind 
                                energy systems, and
                                    ``(II) has a rated output of not 
                                greater than 150 kilowatts.
                          ``(ii) Certified distributed wind energy 
                      system.--The term `certified distributed wind 
                      energy system' means a wind energy system which is 
                      certified by an accredited certification agency to 
                      meet Standard 9.1-2009 of the American Wind Energy 
                      Association (including any subsequent revisions to 
                      or modifications of such Standard which have been 
                      approved by the American National Standards 
                      Institute).
                    ``(E) Microinverter.--The term `microinverter' means 
                an inverter which--
                          ``(i) is suitable to connect with one solar 
                      module,
                          ``(ii) has a rated output of--
                                    ``(I) 120 or 240 volt single-phase 
                                power, or
                                    ``(II) 208 or 480 volt three-phase 
                                power, and
                          ``(iii) has a capacity which is not greater 
                      than 650 watts (expressed on a per alternating 
                      current watt basis).
                    ``(F) Residential inverter.--The term `residential 
                inverter' means an inverter which--
                          ``(i) is suitable for a residence,
                          ``(ii) has a rated output of 120 or 240 volt 
                      single-phase power, and
                          ``(iii) has a capacity which is not greater 
                      than 20 kilowatts (expressed on a per alternating 
                      current watt basis).
                    ``(G) Utility inverter.--The term `utility inverter' 
                means an inverter which--
                          ``(i) is suitable for commercial or utility-
                      scale systems,
                          ``(ii) has a rated output of not less than 600 
                      volt three-phase power, and
                          ``(iii) has a capacity which is greater than 
                      125 kilowatts and not greater than 1000 kilowatts 
                      (expressed on a per alternating current watt 
                      basis)
            ``(3) Solar energy component.--
                    ``(A) In general.--The term `solar energy component' 
                means any of the following:
                          ``(i) Solar modules.

[[Page 136 STAT. 1976]]

                          ``(ii) Photovoltaic cells.
                          ``(iii) Photovoltaic wafers.
                          ``(iv) Solar grade polysilicon.
                          ``(v) Torque tubes or structural fasteners.
                          ``(vi) Polymeric backsheets.
                    ``(B) Associated definitions.--
                          ``(i) Photovoltaic cell.--The term 
                      `photovoltaic cell' means the smallest 
                      semiconductor element of a solar module which 
                      performs the immediate conversion of light into 
                      electricity.
                          ``(ii) Photovoltaic wafer.--The term 
                      `photovoltaic wafer' means a thin slice, sheet, or 
                      layer of semiconductor material of at least 240 
                      square centimeters--
                                    ``(I) produced by a single 
                                manufacturer either--
                                            ``(aa) directly from molten 
                                        or evaporated solar grade 
                                        polysilicon or deposition of 
                                        solar grade thin film 
                                        semiconductor photon absorber 
                                        layer, or
                                            ``(bb) through formation of 
                                        an ingot from molten polysilicon 
                                        and subsequent slicing, and
                                    ``(II) which comprises the substrate 
                                or absorber layer of one or more 
                                photovoltaic cells.
                          ``(iii) Polymeric backsheet.--The term 
                      `polymeric backsheet' means a sheet on the back of 
                      a solar module which acts as an electric insulator 
                      and protects the inner components of such module 
                      from the surrounding environment.
                          ``(iv) Solar grade polysilicon.--The term 
                      `solar grade polysilicon' means silicon which is--
                                    ``(I) suitable for use in 
                                photovoltaic manufacturing, and
                                    ``(II) purified to a minimum purity 
                                of 99.999999 percent silicon by mass.
                          ``(v) Solar module.--The term `solar module' 
                      means the connection and lamination of 
                      photovoltaic cells into an environmentally 
                      protected final assembly which is--
                                    ``(I) suitable to generate 
                                electricity when exposed to sunlight, 
                                and
                                    ``(II) ready for installation 
                                without an additional manufacturing 
                                process.
                          ``(vi) Solar tracker.--The term `solar 
                      tracker' means a mechanical system that moves 
                      solar modules according to the position of the sun 
                      and to increase energy output.
                          ``(vii) Solar tracker components.--
                                    ``(I) Torque tube.--The term `torque 
                                tube' means a structural steel support 
                                element (including longitudinal purlins) 
                                which--
                                            ``(aa) is part of a solar 
                                        tracker,
                                            ``(bb) is of any cross-
                                        sectional shape,
                                            ``(cc) may be assembled from 
                                        individually manufactured 
                                        segments,
                                            ``(dd) spans longitudinally 
                                        between foundation posts,

[[Page 136 STAT. 1977]]

                                            ``(ee) supports solar panels 
                                        and is connected to a mounting 
                                        attachment for solar panels 
                                        (with or without separate module 
                                        interface rails), and
                                            ``(ff) is rotated by means 
                                        of a drive system.
                                    ``(II) Structural fastener.--The 
                                term `structural fastener' means a 
                                component which is used--
                                            ``(aa) to connect the 
                                        mechanical and drive system 
                                        components of a solar tracker to 
                                        the foundation of such solar 
                                        tracker,
                                            ``(bb) to connect torque 
                                        tubes to drive assemblies, or
                                            ``(cc) to connect segments 
                                        of torque tubes to one another.
            ``(4) Wind energy component.--
                    ``(A) In general.--The term `wind energy component' 
                means any of the following:
                          ``(i) Blades.
                          ``(ii) Nacelles.
                          ``(iii) Towers.
                          ``(iv) Offshore wind foundations.
                          ``(v) Related offshore wind vessels.
                    ``(B) Associated definitions.--
                          ``(i) Blade.--The term `blade' means an 
                      airfoil-shaped blade which is responsible for 
                      converting wind energy to low-speed rotational 
                      energy.
                          ``(ii) Offshore wind foundation.--The term 
                      `offshore wind foundation' means the component 
                      (including transition piece) which secures an 
                      offshore wind tower and any above-water turbine 
                      components to the seafloor using--
                                    ``(I) fixed platforms, such as 
                                offshore wind monopiles, jackets, or 
                                gravity-based foundations, or
                                    ``(II) floating platforms and 
                                associated mooring systems.
                          ``(iii) Nacelle.--The term `nacelle' means the 
                      assembly of the drivetrain and other tower-top 
                      components of a wind turbine (with the exception 
                      of the blades and the hub) within their cover 
                      housing.
                          ``(iv) Related offshore wind vessel.--The term 
                      `related offshore wind vessel' means any vessel 
                      which is purpose-built or retrofitted for purposes 
                      of the development, transport, installation, 
                      operation, or maintenance of offshore wind energy 
                      components.
                          ``(v) Tower.--The term `tower' means a tubular 
                      or lattice structure which supports the nacelle 
                      and rotor of a wind turbine.
            ``(5) Qualifying battery component.--
                    ``(A) In general.--The term `qualifying battery 
                component' means any of the following:
                          ``(i) Electrode active materials.
                          ``(ii) Battery cells.
                          ``(iii) Battery modules.
                    ``(B) Associated definitions.--
                          ``(i) Electrode active material.--The term 
                      `electrode active material' means cathode 
                      materials, anode

[[Page 136 STAT. 1978]]

                      materials, anode foils, and electrochemically 
                      active materials, including solvents, additives, 
                      and electrolyte salts that contribute to the 
                      electrochemical processes necessary for energy 
                      storage .
                          ``(ii) Battery cell.--The term `battery cell' 
                      means an electrochemical cell--
                                    ``(I) comprised of 1 or more 
                                positive electrodes and 1 or more 
                                negative electrodes,
                                    ``(II) with an energy density of not 
                                less than 100 watt-hours per liter, and
                                    ``(III) capable of storing at least 
                                12 watt-hours of energy.
                          ``(iii) Battery module.--The term `battery 
                      module' means a module--
                                    ``(I)(aa) in the case of a module 
                                using battery cells, with 2 or more 
                                battery cells which are configured 
                                electrically, in series or parallel, to 
                                create voltage or current, as 
                                appropriate, to a specified end use, or
                                    ``(bb) with no battery cells, and
                                    ``(II) with an aggregate capacity of 
                                not less than 7 kilowatt-hours (or, in 
                                the case of a module for a hydrogen fuel 
                                cell vehicle, not less than 1 kilowatt-
                                hour).
            ``(6) Applicable critical minerals.--The term `applicable 
        critical mineral' means any of the following:
                    ``(A) Aluminum.--Aluminum which is--
                          ``(i) converted from bauxite to a minimum 
                      purity of 99 percent alumina by mass, or
                          ``(ii) purified to a minimum purity of 99.9 
                      percent aluminum by mass.
                    ``(B) Antimony.--Antimony which is--
                          ``(i) converted to antimony trisulfide 
                      concentrate with a minimum purity of 90 percent 
                      antimony trisulfide by mass, or
                          ``(ii) purified to a minimum purity of 99.65 
                      percent antimony by mass.
                    ``(C) Barite.--Barite which is barium sulfate 
                purified to a minimum purity of 80 percent barite by 
                mass.
                    ``(D) Beryllium.--Beryllium which is--
                          ``(i) converted to copper-beryllium master 
                      alloy, or
                          ``(ii) purified to a minimum purity of 99 
                      percent beryllium by mass.
                    ``(E) Cerium.--Cerium which is--
                          ``(i) converted to cerium oxide which is 
                      purified to a minimum purity of 99.9 percent 
                      cerium oxide by mass, or
                          ``(ii) purified to a minimum purity of 99 
                      percent cerium by mass.
                    ``(F) Cesium.--Cesium which is--
                          ``(i) converted to cesium formate or cesium 
                      carbonate, or
                          ``(ii) purified to a minimum purity of 99 
                      percent cesium by mass.
                    ``(G) Chromium.--Chromium which is--
                          ``(i) converted to ferrochromium consisting of 
                      not less than 60 percent chromium by mass, or

[[Page 136 STAT. 1979]]

                          ``(ii) purified to a minimum purity of 99 
                      percent chromium by mass.
                    ``(H) Cobalt.--Cobalt which is--
                          ``(i) converted to cobalt sulfate, or
                          ``(ii) purified to a minimum purity of 99.6 
                      percent cobalt by mass.
                    ``(I) Dysprosium.--Dysprosium which is--
                          ``(i) converted to not less than 99 percent 
                      pure dysprosium iron alloy by mass, or
                          ``(ii) purified to a minimum purity of 99 
                      percent dysprosium by mass.
                    ``(J) Europium.--Europium which is--
                          ``(i) converted to europium oxide which is 
                      purified to a minimum purity of 99.9 percent 
                      europium oxide by mass, or
                          ``(ii) purified to a minimum purity of 99 
                      percent by mass.
                    ``(K) Fluorspar.--Fluorspar which is--
                          ``(i) converted to fluorspar which is purified 
                      to a minimum purity of 97 percent calcium fluoride 
                      by mass, or
                          ``(ii) purified to a minimum purity of 99 
                      percent fluorspar by mass.
                    ``(L) Gadolinium.--Gadolinium which is--
                          ``(i) converted to gadolinium oxide which is 
                      purified to a minimum purity of 99.9 percent 
                      gadolinium oxide by mass, or
                          ``(ii) purified to a minimum purity of 99 
                      percent gadolinium by mass.
                    ``(M) Germanium.--Germanium which is--
                          ``(i) converted to germanium tetrachloride, or
                          ``(ii) purified to a minimum purity of 99.99 
                      percent germanium by mass.
                    ``(N) Graphite.--Graphite which is purified to a 
                minimum purity of 99.9 percent graphitic carbon by mass.
                    ``(O) Indium.--Indium which is--
                          ``(i) converted to--
                                    ``(I) indium tin oxide, or
                                    ``(II) indium oxide which is 
                                purified to a minimum purity of 99.9 
                                percent indium oxide by mass, or
                          ``(ii) purified to a minimum purity of 99 
                      percent indium by mass.
                    ``(P) Lithium.--Lithium which is--
                          ``(i) converted to lithium carbonate or 
                      lithium hydroxide, or
                          ``(ii) purified to a minimum purity of 99.9 
                      percent lithium by mass.
                    ``(Q) Manganese.--Manganese which is--
                          ``(i) converted to manganese sulphate, or
                          ``(ii) purified to a minimum purity of 99.7 
                      percent manganese by mass.
                    ``(R) Neodymium.--Neodymium which is--
                          ``(i) converted to neodymium-praseodymium 
                      oxide which is purified to a minimum purity of 99 
                      percent neodymium-praseodymium oxide by mass,

[[Page 136 STAT. 1980]]

                          ``(ii) converted to neodymium oxide which is 
                      purified to a minimum purity of 99.5 percent 
                      neodymium oxide by mass
                          ``(iii) purified to a minimum purity of 99.9 
                      percent neodymium by mass.
                    ``(S) Nickel.--Nickel which is--
                          ``(i) converted to nickel sulphate, or
                          ``(ii) purified to a minimum purity of 99 
                      percent nickel by mass.
                    ``(T) Niobium.--Niobium which is--
                          ``(i) converted to ferronibium, or
                          ``(ii) purified to a minimum purity of 99 
                      percent niobium by mass.
                    ``(U) Tellurium.--Tellurium which is--
                          ``(i) converted to cadmium telluride, or
                          ``(ii) purified to a minimum purity of 99 
                      percent tellurium by mass.
                    ``(V) Tin.--Tin which is purified to low alpha 
                emitting tin which--
                          ``(i) has a purity of greater than 99.99 
                      percent by mass, and
                          ``(ii) possesses an alpha emission rate of not 
                      greater than 0.01 counts per hour per centimeter 
                      square.
                    ``(W) Tungsten.--Tungsten which is converted to 
                ammonium paratungstate or ferrotungsten.
                    ``(X) Vanadium.--Vanadium which is converted to 
                ferrovanadium or vanadium pentoxide.
                    ``(Y) Yttrium.--Yttrium which is--
                          ``(i) converted to yttrium oxide which is 
                      purified to a minimum purity of 99.999 percent 
                      yttrium oxide by mass, or
                          ``(ii) purified to a minimum purity of 99.9 
                      percent yttrium by mass.
                    ``(Z) Other minerals.--Any of the following 
                minerals, provided that such mineral is purified to a 
                minimum purity of 99 percent by mass:
                          ``(i) Arsenic.
                          ``(ii) Bismuth.
                          ``(iii) Erbium.
                          ``(iv) Gallium.
                          ``(v) Hafnium.
                          ``(vi) Holmium.
                          ``(vii) Iridium.
                          ``(viii) Lanthanum.
                          ``(ix) Lutetium.
                          ``(x) Magnesium.
                          ``(xi) Palladium.
                          ``(xii) Platinum.
                          ``(xiii) Praseodymium.
                          ``(xiv) Rhodium.
                          ``(xv) Rubidium.
                          ``(xvi) Ruthenium.
                          ``(xvii) Samarium.
                          ``(xviii) Scandium.
                          ``(xix) Tantalum.
                          ``(xx) Terbium.
                          ``(xxi) Thulium.

[[Page 136 STAT. 1981]]

                          ``(xxii) Titanium.
                          ``(xxiii) Ytterbium.
                          ``(xxiv) Zinc.
                          ``(xxv) Zirconium.

    ``(d) Special Rules.--In this section--
            ``(1) Related persons.--Persons shall be treated as related 
        to each other if such persons would be treated as a single 
        employer under the regulations prescribed under section 52(b).
            ``(2) Only production in the united states taken into 
        account.--Sales shall be taken into account under this section 
        only with respect to eligible components the production of which 
        is within--
                    ``(A) the United States (within the meaning of 
                section 638(1)), or
                    ``(B) a possession of the United States (within the 
                meaning of section 638(2)).
            ``(3) <<NOTE: Regulations. Applicability.>>  Pass-thru in 
        the case of estates and trusts.--Under regulations prescribed by 
        the Secretary, rules similar to the rules of subsection (d) of 
        section 52 shall apply.
            ``(4) Sale of integrated components.--For purposes of this 
        section, a person shall be treated as having sold an eligible 
        component to an unrelated person if such component is 
        integrated, incorporated, or assembled into another eligible 
        component which is sold to an unrelated person.''.

    (b) Conforming Amendments.--
            (1) Section 38(b) of the Internal Revenue Code of 1986, as 
        amended by the preceding provisions of this Act <<NOTE: 26 USC 
        38.>> , is amended--
                    (A) in paragraph (36), by striking ``plus'' at the 
                end,
                    (B) in paragraph (37), by striking the period at the 
                end and inserting ``, plus'', and
                    (C) by adding at the end the following new 
                paragraph:
            ``(38) the advanced manufacturing production credit 
        determined under section 45X(a).''.
            (2) The table of sections for subpart D of part IV of 
        subchapter A of chapter 1, as amended by the preceding 
        provisions of this Act, <<NOTE: 26 USC 38 prec.>>  is amended by 
        adding at the end the following new item:

``Sec. 45X. Advanced manufacturing production credit.''.

    (c) <<NOTE: 26 USC 45X note.>>  Effective Date.--The amendments made 
by this section shall apply to components produced and sold after 
December 31, 2022.

                            PART 6--SUPERFUND

SEC. 13601. REINSTATEMENT OF SUPERFUND.

    (a)  Hazardous Substance Superfund Financing Rate.--
            (1) Extension.--Section 4611 is amended by striking 
        subsection (e).
            (2) Adjustment for inflation.--
                    (A) Section 4611(c)(2)(A) is amended by striking 
                ``9.7 cents'' and inserting ``16.4 cents''.
                    (B) Section 4611(c) is amended by adding at the end 
                the following:
            ``(3) Adjustment for inflation.--

[[Page 136 STAT. 1982]]

                    ``(A) <<NOTE: Effective date.>> In general.--In the 
                case of a year beginning after 2023, the amount in 
                paragraph (2)(A) shall be increased by an amount equal 
                to--
                          ``(i) such amount, multiplied by
                          ``(ii) the cost-of-living adjustment 
                      determined under section 1(f)(3) for the calendar 
                      year, determined by substituting `calendar year 
                      2022' for `calendar year 2016' in subparagraph 
                      (A)(ii) thereof.
                    ``(B) Rounding.--If any amount as adjusted under 
                subparagraph (A) is not a multiple of $0.01, such amount 
                shall be rounded to the next lowest multiple of 
                $0.01.''.

    (b) Authority for Advances.--Section 9507(d)(3)(B) <<NOTE: 26 USC 
9507.>>  is amended by striking ``December 31, 1995'' and inserting 
``December 31, 2032''.

    (c) <<NOTE: 26 USC 4611 note.>>  Effective Date.--The amendments 
made by this section shall take effect on January 1, 2023.

    PART 7--INCENTIVES FOR CLEAN ELECTRICITY AND CLEAN TRANSPORTATION

SEC. 13701. CLEAN ELECTRICITY PRODUCTION CREDIT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1, 
as amended by the preceding provisions of this Act, is amended by adding 
at the end the following new section:
``SEC. 45Y. <<NOTE: 26 USC 45Y.>>  CLEAN ELECTRICITY PRODUCTION 
                        CREDIT.

    ``(a) Amount of Credit.--
            ``(1) In general.--For purposes of section 38, the clean 
        electricity production credit for any taxable year is an amount 
        equal to the product of--
                    ``(A) the kilowatt hours of electricity--
                          ``(i) produced by the taxpayer at a qualified 
                      facility, and
                          ``(ii)(I) sold by the taxpayer to an unrelated 
                      person during the taxable year, or
                          ``(II) in the case of a qualified facility 
                      which is equipped with a metering device which is 
                      owned and operated by an unrelated person, sold, 
                      consumed, or stored by the taxpayer during the 
                      taxable year, multiplied by
                    ``(B) the applicable amount with respect to such 
                qualified facility.
            ``(2) Applicable amount.--
                    ``(A) Base amount.--Subject to subsection (g)(7), in 
                the case of any qualified facility which is not 
                described in clause (i) or (ii) of subparagraph (B) and 
                does not satisfy the requirements described in clause 
                (iii) of such subparagraph, the applicable amount shall 
                be 0.3 cents.
                    ``(B) Alternative amount.--Subject to subsection 
                (g)(7), in the case of any qualified facility--
                          ``(i) with a maximum net output of less than 1 
                      megawatt (as measured in alternating current),
                          ``(ii) <<NOTE: Time 
                      period. Publication. Guidelines.>>  the 
                      construction of which begins prior to the date 
                      that is 60 days after the Secretary publishes 
                      guidance with respect to the requirements of 
                      paragraphs (9) and (10) of subsection (g), or
                          ``(iii) which--

[[Page 136 STAT. 1983]]

                                    ``(I) satisfies the requirements 
                                under paragraph (9) of subsection (g), 
                                and
                                    ``(II) with respect to the 
                                construction of such facility, satisfies 
                                the requirements under paragraph (10) of 
                                subsection (g),
                the applicable amount shall be 1.5 cents.

    ``(b) Qualified Facility.--
            ``(1) In general.--
                    ``(A) Definition.--Subject to subparagraphs (B), 
                (C), and (D), the term `qualified facility' means a 
                facility owned by the taxpayer--
                          ``(i) which is used for the generation of 
                      electricity,
                          ``(ii) which is placed in service after 
                      December 31, 2024, and
                          ``(iii) for which the greenhouse gas emissions 
                      rate (as determined under paragraph (2)) is not 
                      greater than zero.
                    ``(B) 10-year production credit.--For purposes of 
                this section, a facility shall only be treated as a 
                qualified facility during the 10-year period beginning 
                on the date the facility was originally placed in 
                service.
                    ``(C) <<NOTE: Definition. Effective dates.>>  
                Expansion of facility; incremental production.--The term 
                `qualified facility' shall include either of the 
                following in connection with a facility described in 
                subparagraph (A) (without regard to clause (ii) of such 
                subparagraph) which was placed in service before January 
                1, 2025, but only to the extent of the increased amount 
                of electricity produced at the facility by reason of the 
                following:
                          ``(i) A new unit which is placed in service 
                      after December 31, 2024.
                          ``(ii) Any additions of capacity which are 
                      placed in service after December 31, 2024.
                    ``(D) Coordination with other credits.--The term 
                `qualified facility' shall not include any facility for 
                which a credit determined under section 45, 45J, 45Q, 
                45U, 48, 48A, or 48E is allowed under section 38 for the 
                taxable year or any prior taxable year.
            ``(2) Greenhouse gas emissions rate.--
                    ``(A) <<NOTE: Definition.>>  In general.--For 
                purposes of this section, the term `greenhouse gas 
                emissions rate' means the amount of greenhouse gases 
                emitted into the atmosphere by a facility in the 
                production of electricity, expressed as grams of 
                CO<INF>2</INF>e per KWh.
                    ``(B) Fuel combustion and gasification.--In the case 
                of a facility which produces electricity through 
                combustion or gasification, the greenhouse gas emissions 
                rate for such facility shall be equal to the net rate of 
                greenhouse gases emitted into the atmosphere by such 
                facility (taking into account lifecycle greenhouse gas 
                emissions, as described in section 211(o)(1)(H) of the 
                Clean Air Act (42 U.S.C. 7545(o)(1)(H))) in the 
                production of electricity, expressed as grams of 
                CO<INF>2</INF>e per KWh.
                    ``(C) Establishment of emissions rates for 
                facilities.--

[[Page 136 STAT. 1984]]

                          ``(i) <<NOTE: Deadline.>> Publishing emissions 
                      rates.--The Secretary shall annually publish a 
                      table that sets forth the greenhouse gas emissions 
                      rates for types or categories of facilities, which 
                      a taxpayer shall use for purposes of this section.
                          ``(ii) <<NOTE: Petition. Determination.>>  
                      Provisional emissions rate.--In the case of any 
                      facility for which an emissions rate has not been 
                      established by the Secretary, a taxpayer which 
                      owns such facility may file a petition with the 
                      Secretary for determination of the emissions rate 
                      with respect to such facility.
                    ``(D) Carbon capture and sequestration equipment.--
                For purposes of this subsection, the amount of 
                greenhouse gases emitted into the atmosphere by a 
                facility in the production of electricity shall not 
                include any qualified carbon dioxide that is captured by 
                the taxpayer and--
                          ``(i) pursuant to any regulations established 
                      under paragraph (2) of section 45Q(f), disposed of 
                      by the taxpayer in secure geological storage, or
                          ``(ii) utilized by the taxpayer in a manner 
                      described in paragraph (5) of such section.

    ``(c) Inflation Adjustment.--
            ``(1) <<NOTE: Effective date.>> In general.--In the case of 
        a calendar year beginning after 2024, the 0.3 cent amount in 
        paragraph (2)(A) of subsection (a) and the 1.5 cent amount in 
        paragraph (2)(B) of such subsection shall each be adjusted by 
        multiplying such amount by the inflation adjustment factor for 
        the calendar year in which the sale, consumption, or storage of 
        the electricity occurs. If the 0.3 cent amount as increased 
        under this paragraph is not a multiple of 0.05 cent, such amount 
        shall be rounded to the nearest multiple of 0.05 cent. If the 
        1.5 cent amount as increased under this paragraph is not a 
        multiple of 0.1 cent, such amount shall be rounded to the 
        nearest multiple of 0.1 cent.
            ``(2) <<NOTE: Deadline. Determination. Federal Register, 
        publication.>> Annual computation.--The Secretary shall, not 
        later than April 1 of each calendar year, determine and publish 
        in the Federal Register the inflation adjustment factor for such 
        calendar year in accordance with this subsection.
            ``(3) <<NOTE: Definitions.>>  Inflation adjustment factor.--
        The term `inflation adjustment factor' means, with respect to a 
        calendar year, a fraction the numerator of which is the GDP 
        implicit price deflator for the preceding calendar year and the 
        denominator of which is the GDP implicit price deflator for the 
        calendar year 1992. The term `GDP implicit price deflator' means 
        the most recent revision of the implicit price deflator for the 
        gross domestic product as computed and published by the 
        Department of Commerce before March 15 of the calendar year.

    ``(d) Credit Phase-out.--
            ``(1) In general.--The amount of the clean electricity 
        production credit under subsection (a) for any qualified 
        facility the construction of which begins during a calendar year 
        described in paragraph (2) shall be equal to the product of--
                    ``(A) the amount of the credit determined under 
                subsection (a) without regard to this subsection, 
                multiplied by
                    ``(B) the phase-out percentage under paragraph (2).

[[Page 136 STAT. 1985]]

            ``(2) Phase-out percentage.--The phase-out percentage under 
        this paragraph is equal to--
                    ``(A) for a facility the construction of which 
                begins during the first calendar year following the 
                applicable year, 100 percent,
                    ``(B) for a facility the construction of which 
                begins during the second calendar year following the 
                applicable year, 75 percent,
                    ``(C) for a facility the construction of which 
                begins during the third calendar year following the 
                applicable year, 50 percent, and
                    ``(D) for a facility the construction of which 
                begins during any calendar year subsequent to the 
                calendar year described in subparagraph (C), 0 percent.
            ``(3) <<NOTE: Definition.>>  Applicable year.--For purposes 
        of this subsection, the term `applicable year' means the later 
        of--
                    ``(A) <<NOTE: Determination.>>  the calendar year in 
                which the Secretary determines that the annual 
                greenhouse gas emissions from the production of 
                electricity in the United States are equal to or less 
                than 25 percent of the annual greenhouse gas emissions 
                from the production of electricity in the United States 
                for calendar year 2022, or
                    ``(B) 2032.

    ``(e) Definitions.--For purposes of this section:
            ``(1) CO<INF>2</INF>e per KWh.--The term `CO<INF>2</INF>e 
        per KWh' means, with respect to any greenhouse gas, the 
        equivalent carbon dioxide (as determined based on global warming 
        potential) per kilowatt hour of electricity produced.
            ``(2) Greenhouse gas.--The term `greenhouse gas' has the 
        same meaning given such term under section 211(o)(1)(G) of the 
        Clean Air Act (42 U.S.C. 7545(o)(1)(G)), as in effect on the 
        date of the enactment of this section.
            ``(3) Qualified carbon dioxide.--The term `qualified carbon 
        dioxide' means carbon dioxide captured from an industrial source 
        which--
                    ``(A) would otherwise be released into the 
                atmosphere as industrial emission of greenhouse gas,
                    ``(B) is measured at the source of capture and 
                verified at the point of disposal or utilization, and
                    ``(C) is captured and disposed or utilized within 
                the United States (within the meaning of section 638(1)) 
                or a possession of the United States (within the meaning 
                of section 638(2)).

    ``(f) <<NOTE: Deadline. Determination.>>  Guidance.--Not later than 
January 1, 2025, the Secretary shall issue guidance regarding 
implementation of this section, including calculation of greenhouse gas 
emission rates for qualified facilities and determination of clean 
electricity production credits under this section.

    ``(g) Special Rules.--
            ``(1) Only production in the united states taken into 
        account.--Consumption, sales, or storage shall be taken into 
        account under this section only with respect to electricity the 
        production of which is within--
                    ``(A) the United States (within the meaning of 
                section 638(1)), or
                    ``(B) a possession of the United States (within the 
                meaning of section 638(2)).

[[Page 136 STAT. 1986]]

            ``(2) Combined heat and power system property.--
                    ``(A) In general.--For purposes of subsection (a)--
                          ``(i) the kilowatt hours of electricity 
                      produced by a taxpayer at a qualified facility 
                      shall include any production in the form of useful 
                      thermal energy by any combined heat and power 
                      system property within such facility, and
                          ``(ii) the amount of greenhouse gases emitted 
                      into the atmosphere by such facility in the 
                      production of such useful thermal energy shall be 
                      included for purposes of determining the 
                      greenhouse gas emissions rate for such facility.
                    ``(B) <<NOTE: Definition.>>  Combined heat and power 
                system property.--For purposes of this paragraph, the 
                term `combined heat and power system property' has the 
                same meaning given such term by section 48(c)(3) 
                (without regard to subparagraphs (A)(iv), (B), and (D) 
                thereof).
                    ``(C) Conversion from btu to kwh.--
                          ``(i) In general.--For purposes of 
                      subparagraph (A)(i), the amount of kilowatt hours 
                      of electricity produced in the form of useful 
                      thermal energy shall be equal to the quotient of--
                                    ``(I) the total useful thermal 
                                energy produced by the combined heat and 
                                power system property within the 
                                qualified facility, divided by
                                    ``(II) the heat rate for such 
                                facility.
                          ``(ii) <<NOTE: Definition.>> Heat rate.--For 
                      purposes of this subparagraph, the term `heat 
                      rate' means the amount of energy used by the 
                      qualified facility to generate 1 kilowatt hour of 
                      electricity, expressed as British thermal units 
                      per net kilowatt hour generated.
            ``(3) <<NOTE: Regulations.>>  Production attributable to the 
        taxpayer.--In the case of a qualified facility in which more 
        than 1 person has an ownership interest, except to the extent 
        provided in regulations prescribed by the Secretary, production 
        from the facility shall be allocated among such persons in 
        proportion to their respective ownership interests in the gross 
        sales from such facility.
            ``(4) Related persons.--Persons shall be treated as related 
        to each other if such persons would be treated as a single 
        employer under the regulations prescribed under section 52(b). 
        In the case of a corporation which is a member of an affiliated 
        group of corporations filing a consolidated return, such 
        corporation shall be treated as selling electricity to an 
        unrelated person if such electricity is sold to such a person by 
        another member of such group.
            ``(5) <<NOTE: Regulations. Applicability.>>  Pass-thru in 
        the case of estates and trusts.--Under regulations prescribed by 
        the Secretary, rules similar to the rules of subsection (d) of 
        section 52 shall apply.
            ``(6) Allocation of credit to patrons of agricultural 
        cooperative.--
                    ``(A) Election to allocate.--
                          ``(i) In general.--In the case of an eligible 
                      cooperative organization, any portion of the 
                      credit determined under subsection (a) for the 
                      taxable year may, at the election of the 
                      organization, be apportioned among patrons of the 
                      organization on the basis of the amount

[[Page 136 STAT. 1987]]

                      of business done by the patrons during the taxable 
                      year.
                          ``(ii) Form and effect of election.--An 
                      election under clause (i) for any taxable year 
                      shall be made on a timely filed return for such 
                      year. Such election, once made, shall be 
                      irrevocable for such taxable year. 
                      Such <<NOTE: Notice.>>  election shall not take 
                      effect unless the organization designates the 
                      apportionment as such in a written notice mailed 
                      to its patrons during the payment period described 
                      in section 1382(d).
                    ``(B) Treatment of organizations and patrons.--The 
                amount of the credit apportioned to any patrons under 
                subparagraph (A)--
                          ``(i) shall not be included in the amount 
                      determined under subsection (a) with respect to 
                      the organization for the taxable year, and
                          ``(ii) shall be included in the amount 
                      determined under subsection (a) for the first 
                      taxable year of each patron ending on or after the 
                      last day of the payment period (as defined in 
                      section 1382(d)) for the taxable year of the 
                      organization or, if earlier, for the taxable year 
                      of each patron ending on or after the date on 
                      which the patron receives notice from the 
                      cooperative of the apportionment.
                    ``(C) Special rules for decrease in credits for 
                taxable year.--If the amount of the credit of a 
                cooperative organization determined under subsection (a) 
                for a taxable year is less than the amount of such 
                credit shown on the return of the cooperative 
                organization for such year, an amount equal to the 
                excess of--
                          ``(i) such reduction, over
                          ``(ii) the amount not apportioned to such 
                      patrons under subparagraph (A) for the taxable 
                      year,
                shall be treated as an increase in tax imposed by this 
                chapter on the organization. Such increase shall not be 
                treated as tax imposed by this chapter for purposes of 
                determining the amount of any credit under this chapter.
                    ``(D) Eligible cooperative defined.--For purposes of 
                this section, the term `eligible cooperative' means a 
                cooperative organization described in section 1381(a) 
                which is owned more than 50 percent by agricultural 
                producers or by entities owned by agricultural 
                producers. For this purpose an entity owned by an 
                agricultural producer is one that is more than 50 
                percent owned by agricultural producers.
            ``(7) <<NOTE: Determination.>>  Increase in credit in energy 
        communities.--In the case of any qualified facility which is 
        located in an energy community (as defined in section 
        45(b)(11)(B)), for purposes of determining the amount of the 
        credit under subsection (a) with respect to any electricity 
        produced by the taxpayer at such facility during the taxable 
        year, the applicable amount under paragraph (2) of such 
        subsection shall be increased by an amount equal to 10 percent 
        of the amount otherwise in effect under such paragraph.
            ``(8) <<NOTE: Applicability.>>  Credit reduced for tax-
        exempt bonds.--Rules similar to the rules of section 45(b)(3) 
        shall apply.

[[Page 136 STAT. 1988]]

            ``(9) <<NOTE: Applicability.>>  Wage requirements.--Rules 
        similar to the rules of section 45(b)(7) shall apply.
            ``(10) <<NOTE: Applicability.>>  Apprenticeship 
        requirements.--Rules similar to the rules of section 45(b)(8) 
        shall apply.
            ``(11) Domestic content bonus credit amount.--
                    ``(A) In general.--In the case of any qualified 
                facility which satisfies the requirement under 
                subparagraph (B)(i), the amount of the credit determined 
                under subsection (a) shall be increased by an amount 
                equal to 10 percent of the amount so determined (as 
                determined without application of paragraph (7)).
                    ``(B) Requirement.--
                          ``(i) <<NOTE: Certification.>> In general.--
                      The requirement described in this subclause is 
                      satisfied with respect to any qualified facility 
                      if the taxpayer certifies to the Secretary (at 
                      such time, and in such form and manner, as the 
                      Secretary may prescribe) that any steel, iron, or 
                      manufactured product which is a component of such 
                      facility (upon completion of construction) was 
                      produced in the United States (as determined under 
                      section 661 of title 49, Code of Federal 
                      Regulations).
                          ``(ii) <<NOTE: Applicability.>> Steel and 
                      iron.--In the case of steel or iron, clause (i) 
                      shall be applied in a manner consistent with 
                      section 661.5 of title 49, Code of Federal 
                      Regulations.
                          ``(iii) Manufactured product.--For purposes of 
                      clause (i), the manufactured products which are 
                      components of a qualified facility upon completion 
                      of construction shall be deemed to have been 
                      produced in the United States if not less than the 
                      adjusted percentage (as determined under 
                      subparagraph (C)) of the total costs of all such 
                      manufactured products of such facility are 
                      attributable to manufactured products (including 
                      components) which are mined, produced, or 
                      manufactured in the United States.
                    ``(C) <<NOTE: Effective dates.>>  Adjusted 
                percentage.--
                          ``(i) In general.--Subject to subclause (ii), 
                      for purposes of subparagraph (B)(iii), the 
                      adjusted percentage shall be--
                                    ``(I) in the case of a facility the 
                                construction of which begins before 
                                January 1, 2025, 40 percent,
                                    ``(II) in the case of a facility the 
                                construction of which begins after 
                                December 31, 2024, and before January 1, 
                                2026, 45 percent,
                                    ``(III) in the case of a facility 
                                the construction of which begins after 
                                December 31, 2025, and before January 1, 
                                2027, 50 percent, and
                                    ``(IV) in the case of a facility the 
                                construction of which begins after 
                                December 31, 2026, 55 percent.
                          ``(ii) Offshore wind facility.--For purposes 
                      of subparagraph (B)(iii), in the case of a 
                      qualified facility which is an offshore wind 
                      facility, the adjusted percentage shall be--
                                    ``(I) in the case of a facility the 
                                construction of which begins before 
                                January 1, 2025, 20 percent,

[[Page 136 STAT. 1989]]

                                    ``(II) in the case of a facility the 
                                construction of which begins after 
                                December 31, 2024, and before January 1, 
                                2026, 27.5 percent,
                                    ``(III) in the case of a facility 
                                the construction of which begins after 
                                December 31, 2025, and before January 1, 
                                2027, 35 percent,
                                    ``(IV) in the case of a facility the 
                                construction of which begins after 
                                December 31, 2026, and before January 1, 
                                2028, 45 percent, and
                                    ``(V) in the case of a facility the 
                                construction of which begins after 
                                December 31, 2027, 55 percent.
            ``(12) Phaseout for elective payment.--
                    ``(A) In general.--In the case of a taxpayer making 
                an election under section 6417 with respect to a credit 
                under this section, the amount of such credit shall be 
                replaced with--
                          ``(i) the value of such credit (determined 
                      without regard to this paragraph), multiplied by
                          ``(ii) the applicable percentage.
                    ``(B) 100 percent applicable percentage for certain 
                qualified facilities.--In the case of any qualified 
                facility--
                          ``(i) which satisfies the requirements under 
                      paragraph (11)(B), or
                          ``(ii) with a maximum net output of less than 
                      1 megawatt (as measured in alternating current),
                the applicable percentage shall be 100 percent.
                    ``(C) <<NOTE: Effective dates. Time periods.>>  
                Phased domestic content requirement.--Subject to 
                subparagraph (D), in the case of any qualified facility 
                which is not described in subparagraph (B), the 
                applicable percentage shall be--
                          ``(i) if construction of such facility began 
                      before January 1, 2024, 100 percent,
                          ``(ii) if construction of such facility began 
                      in calendar year 2024, 90 percent,
                          ``(iii) if construction of such facility began 
                      in calendar year 2025, 85 percent, and
                          ``(iv) if construction of such facility began 
                      after December 31, 2025, 0 percent.
                    ``(D) Exception.--
                          ``(i) In general.--For purposes of this 
                      paragraph, the Secretary shall provide exceptions 
                      to the requirements under this paragraph if--
                                    ``(I) the inclusion of steel, iron, 
                                or manufactured products which are 
                                produced in the United States increases 
                                the overall costs of construction of 
                                qualified facilities by more than 25 
                                percent, or
                                    ``(II) relevant steel, iron, or 
                                manufactured products are not produced 
                                in the United States in sufficient and 
                                reasonably available quantities or of a 
                                satisfactory quality.
                          ``(ii) Applicable percentage.--In any case in 
                      which the Secretary provides an exception pursuant 
                      to clause (i), the applicable percentage shall be 
                      100 percent.''.

[[Page 136 STAT. 1990]]

    (b) Conforming Amendments.--
            (1) Section 38(b), as amended by the preceding provisions of 
        this Act, <<NOTE: 26 USC 38.>>  is amended--
                    (A) in paragraph (37), by striking ``plus'' at the 
                end,
                    (B) in paragraph (38), by striking the period at the 
                end and inserting ``, plus'', and
                    (C) by adding at the end the following new 
                paragraph:
            ``(39) the clean electricity production credit determined 
        under section 45Y(a).''.
            (2) The table of sections for subpart D of part IV of 
        subchapter A of chapter 1, as amended by the preceding 
        provisions of this Act, <<NOTE: 26 USC 38 prec.>>  is amended by 
        adding at the end the following new item:

``Sec. 45Y. Clean electricity production credit.''.

    (c) <<NOTE: 26 USC 45Y note.>> Effective Date.--The amendments made 
by this section shall apply to facilities placed in service after 
December 31, 2024.
SEC. 13702. CLEAN ELECTRICITY INVESTMENT CREDIT.

    (a) In General.--Subpart E of part IV of subchapter A of chapter 1, 
as amended by section 107(a) of the CHIPS Act of 2022, is amended by 
inserting after section 48D the following new section:
``SEC. 48E. <<NOTE: 26 USC 48E.>>  CLEAN ELECTRICITY INVESTMENT 
                        CREDIT.

    ``(a) Investment Credit for Qualified Property.--
            ``(1) In general.--For purposes of section 46, the clean 
        electricity investment credit for any taxable year is an amount 
        equal to the applicable percentage of the qualified investment 
        for such taxable year with respect to--
                    ``(A) any qualified facility, and
                    ``(B) any energy storage technology.
            ``(2) Applicable percentage.--
                    ``(A) Qualified facilities.--Subject to paragraph 
                (3)--
                          ``(i) Base rate.--In the case of any qualified 
                      facility which is not described in subclause (I) 
                      or (II) of clause (ii) and does not satisfy the 
                      requirements described in subclause (III) of such 
                      clause, the applicable percentage shall be 6 
                      percent.
                          ``(ii) Alternative rate.--In the case of any 
                      qualified facility--
                                    ``(I) with a maximum net output of 
                                less than 1 megawatt (as measured in 
                                alternating current),
                                    ``(II) <<NOTE: Time 
                                period. Publication. Guidelines.>>  the 
                                construction of which begins prior to 
                                the date that is 60 days after the 
                                Secretary publishes guidance with 
                                respect to the requirements of 
                                paragraphs (3) and (4) of subsection 
                                (d), or
                                    ``(III) which--
                                            ``(aa) satisfies the 
                                        requirements of subsection 
                                        (d)(3), and
                                            ``(bb) with respect to the 
                                        construction of such facility, 
                                        satisfies the requirements of 
                                        subsection (d)(4),
                      the applicable percentage shall be 30 percent.
                    ``(B) Energy storage technology.--Subject to 
                paragraph (3)--

[[Page 136 STAT. 1991]]

                          ``(i) Base rate.--In the case of any energy 
                      storage technology which is not described in 
                      subclause (I) or (II) of clause (ii) and does not 
                      satisfy the requirements described in subclause 
                      (III) of such clause, the applicable percentage 
                      shall be 6 percent.
                          ``(ii) Alternative rate.--In the case of any 
                      energy storage technology--
                                    ``(I) with a capacity of less than 1 
                                megawatt,
                                    ``(II) <<NOTE: Time 
                                period. Publication. Guidelines.>>  the 
                                construction of which begins prior to 
                                the date that is 60 days after the 
                                Secretary publishes guidance with 
                                respect to the requirements of 
                                paragraphs (3) and (4) of subsection 
                                (d), or
                                    ``(III) which--
                                            ``(aa) satisfies the 
                                        requirements of subsection 
                                        (d)(3), and
                                            ``(bb) with respect to the 
                                        construction of such property, 
                                        satisfies the requirements of 
                                        subsection (d)(4),
                      the applicable percentage shall be 30 percent.
            ``(3) Increase in credit rate in certain cases.--
                    ``(A) Energy communities.--
                          ``(i) In general.--In the case of any 
                      qualified investment with respect to a qualified 
                      facility or with respect to energy storage 
                      technology which is placed in service within an 
                      energy community (as defined in section 
                      45(b)(11)(B)), for purposes of applying paragraph 
                      (2) with respect to such property or investment, 
                      the applicable percentage shall be increased by 
                      the applicable credit rate increase.
                          ``(ii) Applicable credit rate increase.--For 
                      purposes of clause (i), the applicable credit rate 
                      increase shall be an amount equal to--
                                    ``(I) in the case of any qualified 
                                investment with respect to a qualified 
                                facility described in paragraph 
                                (2)(A)(i) or with respect to energy 
                                storage technology described in 
                                paragraph (2)(B)(i), 2 percentage 
                                points, and
                                    ``(II) in the case of any qualified 
                                investment with respect to a qualified 
                                facility described in paragraph 
                                (2)(A)(ii) or with respect to energy 
                                storage technology described in 
                                paragraph (2)(B)(ii), 10 percentage 
                                points.
                    ``(B) <<NOTE: Applicability.>>  Domestic content.--
                Rules similar to the rules of section 48(a)(12) shall 
                apply.

    ``(b) <<NOTE: Definitions.>>  Qualified Investment With Respect to a 
Qualified Facility.--
            ``(1) In general.--For purposes of subsection (a), the 
        qualified investment with respect to any qualified facility for 
        any taxable year is the sum of--
                    ``(A) the basis of any qualified property placed in 
                service by the taxpayer during such taxable year which 
                is part of a qualified facility, plus
                    ``(B) the amount of any expenditures which are--
                          ``(i) paid or incurred by the taxpayer for 
                      qualified interconnection property--

[[Page 136 STAT. 1992]]

                                    ``(I) in connection with a qualified 
                                facility which has a maximum net output 
                                of not greater than 5 megawatts (as 
                                measured in alternating current), and
                                    ``(II) placed in service during the 
                                taxable year of the taxpayer, and
                          ``(ii) properly chargeable to capital account 
                      of the taxpayer.
            ``(2) Qualified property.--For purposes of this section, the 
        term `qualified property' means property--
                    ``(A) which is--
                          ``(i) tangible personal property, or
                          ``(ii) other tangible property (not including 
                      a building or its structural components), but only 
                      if such property is used as an integral part of 
                      the qualified facility,
                    ``(B) with respect to which depreciation (or 
                amortization in lieu of depreciation) is allowable, and
                    ``(C)(i) the construction, reconstruction, or 
                erection of which is completed by the taxpayer, or
                    ``(ii) which is acquired by the taxpayer if the 
                original use of such property commences with the 
                taxpayer.
            ``(3) Qualified facility.--
                    ``(A) In general.--For purposes of this section, the 
                term `qualified facility' means a facility--
                          ``(i) which is used for the generation of 
                      electricity,
                          ``(ii) which is placed in service after 
                      December 31, 2024, and
                          ``(iii) for which the anticipated greenhouse 
                      gas emissions rate (as determined under 
                      subparagraph (B)(ii)) is not greater than zero.
                    ``(B) <<NOTE: Applicability.>>  Additional rules.--
                          ``(i) Expansion of facility; incremental 
                      production.--Rules similar to the rules of section 
                      45Y(b)(1)(C) shall apply for purposes of this 
                      paragraph.
                          ``(ii) Greenhouse gas emissions rate.--Rules 
                      similar to the rules of section 45Y(b)(2) shall 
                      apply for purposes of this paragraph.
                    ``(C) Exclusion.--The term `qualified facility' 
                shall not include any facility for which--
                          ``(i) a renewable electricity production 
                      credit determined under section 45,
                          ``(ii) an advanced nuclear power facility 
                      production credit determined under section 45J,
                          ``(iii) a carbon oxide sequestration credit 
                      determined under section 45Q,
                          ``(iv) a zero-emission nuclear power 
                      production credit determined under section 45U,
                          ``(v) a clean electricity production credit 
                      determined under section 45Y,
                          ``(vi) an energy credit determined under 
                      section 48, or
                          ``(vii) a qualifying advanced coal project 
                      credit under section 48A,
                is allowed under section 38 for the taxable year or any 
                prior taxable year.

[[Page 136 STAT. 1993]]

            ``(4) Qualified interconnection property.--For purposes of 
        this paragraph, the term `qualified interconnection property' 
        has the meaning given such term in section 48(a)(8)(B).
            ``(5) Coordination with rehabilitation credit.--The 
        qualified investment with respect to any qualified facility for 
        any taxable year shall not include that portion of the basis of 
        any property which is attributable to qualified rehabilitation 
        expenditures (as defined in section 47(c)(2)).
            ``(6) Definitions.--For purposes of this subsection, the 
        terms `CO2e per KWh' and `greenhouse gas emissions rate' have 
        the same meaning given such terms under section 45Y.

    ``(c) Qualified Investment With Respect to Energy Storage 
Technology.--
            ``(1) Qualified investment.--For purposes of subsection (a), 
        the qualified investment with respect to energy storage 
        technology for any taxable year is the basis of any energy 
        storage technology placed in service by the taxpayer during such 
        taxable year.
            ``(2) <<NOTE: Definition.>> Energy storage technology.--For 
        purposes of this section, the term `energy storage technology' 
        has the meaning given such term in section 48(c)(6) (except that 
        subparagraph (D) of such section shall not apply).

    ``(d) <<NOTE: Applicability.>> Special Rules.--
            ``(1) Certain progress expenditure rules made applicable.--
        Rules similar to the rules of subsections (c)(4) and (d) of 
        section 46 (as in effect on the day before the date of the 
        enactment of the Revenue Reconciliation Act of 1990) shall apply 
        for purposes of subsection (a).
            ``(2) Special rule for property financed by subsidized 
        energy financing or private activity bonds.--Rules similar to 
        the rules of section 45(b)(3) shall apply.
            ``(3) Prevailing wage requirements.--Rules similar to the 
        rules of section 48(a)(10) shall apply.
            ``(4) Apprenticeship requirements.--Rules similar to the 
        rules of section 45(b)(8) shall apply.
            ``(5) Domestic content requirement for elective payment.--In 
        the case of a taxpayer making an election under section 6417 
        with respect to a credit under this section, rules similar to 
        the rules of section 45Y(g)(12) shall apply.

    ``(e) Credit Phase-Out.--
            ``(1) In general.--The amount of the clean electricity 
        investment credit under subsection (a) for any qualified 
        investment with respect to any qualified facility or energy 
        storage technology the construction of which begins during a 
        calendar year described in paragraph (2) shall be equal to the 
        product of--
                    ``(A) the amount of the credit determined under 
                subsection (a) without regard to this subsection, 
                multiplied by
                    ``(B) the phase-out percentage under paragraph (2).
            ``(2) Phase-out percentage.--The phase-out percentage under 
        this paragraph is equal to--
                    ``(A) for any qualified investment with respect to 
                any qualified facility or energy storage technology the 
                construction of which begins during the first calendar 
                year following the applicable year, 100 percent,

[[Page 136 STAT. 1994]]

                    ``(B) for any qualified investment with respect to 
                any qualified facility or energy storage technology the 
                construction of which begins during the second calendar 
                year following the applicable year, 75 percent,
                    ``(C) for any qualified investment with respect to 
                any qualified facility or energy storage technology the 
                construction of which begins during the third calendar 
                year following the applicable year, 50 percent, and
                    ``(D) for any qualified investment with respect to 
                any qualified facility or energy storage technology the 
                construction of which begins during any calendar year 
                subsequent to the calendar year described in 
                subparagraph (C), 0 percent.
            ``(3) <<NOTE: Definition.>>  Applicable year.--For purposes 
        of this subsection, the term `applicable year' has the same 
        meaning given such term in section 45Y(d)(3).

    ``(f) <<NOTE: Definition.>>  Greenhouse Gas.--In this section, the 
term `greenhouse gas' has the same meaning given such term under section 
45Y(e)(2).

    ``(g) Recapture of Credit.--For purposes of section 50, if the 
Secretary determines that the greenhouse gas emissions rate for a 
qualified facility is greater than 10 grams of CO<INF>2</INF>e per KWh, 
any property for which a credit was allowed under this section with 
respect to such facility shall cease to be investment credit property in 
the taxable year in which the determination is made.
    ``(h) <<NOTE: Definitions.>>  Special Rules for Certain Facilities 
Placed in Service in Connection With Low-income Communities.--
            ``(1) In general.--In the case of any applicable facility 
        with respect to which the Secretary makes an allocation of 
        environmental justice capacity limitation under paragraph (4)--
                    ``(A) the applicable percentage otherwise determined 
                under subsection (a)(2) with respect to any eligible 
                property which is part of such facility shall be 
                increased by--
                          ``(i) in the case of a facility described in 
                      subclause (I) of paragraph (2)(A)(iii) and not 
                      described in subclause (II) of such paragraph, 10 
                      percentage points, and
                          ``(ii) in the case of a facility described in 
                      subclause (II) of paragraph (2)(A)(iii), 20 
                      percentage points, and
                    ``(B) the increase in the credit determined under 
                subsection (a) by reason of this subsection for any 
                taxable year with respect to all property which is part 
                of such facility shall not exceed the amount which bears 
                the same ratio to the amount of such increase 
                (determined without regard to this subparagraph) as--
                          ``(i) the environmental justice capacity 
                      limitation allocated to such facility, bears to
                          ``(ii) the total megawatt nameplate capacity 
                      of such facility, as measured in direct current.
            ``(2) Applicable facility.--For purposes of this 
        subsection--
                    ``(A) In general.--The term `applicable facility' 
                means any qualified facility--
                          ``(i) which is not described in section 
                      45Y(b)(2)(B),
                          ``(ii) which has a maximum net output of less 
                      than 5 megawatts (as measured in alternating 
                      current), and
                          ``(iii) which--

[[Page 136 STAT. 1995]]

                                    ``(I) is located in a low-income 
                                community (as defined in section 45D(e)) 
                                or on Indian land (as defined in section 
                                2601(2) of the Energy Policy Act of 1992 
                                (25 U.S.C. 3501(2))), or
                                    ``(II) is part of a qualified low-
                                income residential building project or a 
                                qualified low-income economic benefit 
                                project.
                    ``(B) Qualified low-income residential building 
                project.--A facility shall be treated as part of a 
                qualified low-income residential building project if--
                          ``(i) such facility is installed on a 
                      residential rental building which participates in 
                      a covered housing program (as defined in section 
                      41411(a) of the Violence Against Women Act of 1994 
                      (34 U.S.C. 12491(a)(3)), a housing assistance 
                      program administered by the Department of 
                      Agriculture under title V of the Housing Act of 
                      1949, a housing program administered by a tribally 
                      designated housing entity (as defined in section 
                      4(22) of the Native American Housing Assistance 
                      and Self-Determination Act of 1996 (25 U.S.C. 
                      4103(22))) or such other affordable housing 
                      programs as the Secretary may provide, and
                          ``(ii) the financial benefits of the 
                      electricity produced by such facility are 
                      allocated equitably among the occupants of the 
                      dwelling units of such building.
                    ``(C) Qualified low-income economic benefit 
                project.--A facility shall be treated as part of a 
                qualified low-income economic benefit project if at 
                least 50 percent of the financial benefits of the 
                electricity produced by such facility are provided to 
                households with income of--
                          ``(i) less than 200 percent of the poverty 
                      line (as defined in section 36B(d)(3)(A)) 
                      applicable to a family of the size involved, or
                          ``(ii) less than 80 percent of area median 
                      gross income (as determined under section 
                      142(d)(2)(B)).
                    ``(D) Financial benefit.--For purposes of 
                subparagraphs (B) and (C), electricity acquired at a 
                below-market rate shall not fail to be taken into 
                account as a financial benefit.
            ``(3) Eligible property.--For purposes of this subsection, 
        the term `eligible property' means a qualified investment with 
        respect to any applicable facility.
            ``(4) Allocations.--
                    ``(A) <<NOTE: Deadline.>>  In general.--Not later 
                than January 1, 2025, the Secretary shall establish a 
                program to allocate amounts of environmental justice 
                capacity limitation to applicable facilities. In 
                establishing <<NOTE: Procedures.>>  such program and to 
                carry out the purposes of this subsection, the Secretary 
                shall provide procedures to allow for an efficient 
                allocation process, including, when determined 
                appropriate, consideration of multiple projects in a 
                single application if such projects will be placed in 
                service by a single taxpayer.
                    ``(B) Limitation.--The amount of environmental 
                justice capacity limitation allocated by the Secretary 
                under subparagraph (A) during any calendar year shall 
                not exceed the annual capacity limitation with respect 
                to such year.

[[Page 136 STAT. 1996]]

                    ``(C) <<NOTE: Time period.>>  Annual capacity 
                limitation.--For purposes of this paragraph, the term 
                `annual capacity limitation' means 1.8 gigawatts of 
                direct current capacity for each calendar year during 
                the period beginning on January 1, 2025, and ending on 
                December 31 of the applicable year (as defined in 
                section 45Y(d)(3)), and zero thereafter.
                    ``(D) Carryover of unused limitation.--
                          ``(i) In general.--If the annual capacity 
                      limitation for any calendar year exceeds the 
                      aggregate amount allocated for such year under 
                      this paragraph, such limitation for the succeeding 
                      calendar year shall be increased by the amount of 
                      such excess. No amount may be carried under the 
                      preceding sentence to any calendar year after the 
                      third calendar year following the applicable year 
                      (as defined in section 45Y(d)(3)).
                          ``(ii) Carryover from section 48 for calendar 
                      year 2025.--If the annual capacity limitation for 
                      calendar year 2024 under section 48(e)(4)(D) 
                      exceeds the aggregate amount allocated for such 
                      year under such section, such excess amount may be 
                      carried over and applied to the annual capacity 
                      limitation under this subsection for calendar year 
                      2025. The annual capacity limitation for calendar 
                      year 2025 shall be increased by the amount of such 
                      excess.
                    ``(E) Placed in service deadline.--
                          ``(i) In general.--Paragraph (1) shall not 
                      apply with respect to any property which is placed 
                      in service after the date that is 4 years after 
                      the date of the allocation with respect to the 
                      facility of which such property is a part.
                          ``(ii) Application of carryover.--Any amount 
                      of environmental justice capacity limitation which 
                      expires under clause (i) during any calendar year 
                      shall be taken into account as an excess described 
                      in subparagraph (D)(i) (or as an increase in such 
                      excess) for such calendar year, subject to the 
                      limitation imposed by the last sentence of such 
                      subparagraph.
            ``(5) <<NOTE: Regulations. Guidelines.>>  Recapture.--The 
        Secretary shall, by regulations or other guidance, provide for 
        recapturing the benefit of any increase in the credit allowed 
        under subsection (a) by reason of this subsection with respect 
        to any property which ceases to be property eligible for such 
        increase (but which does not cease to be investment credit 
        property within the meaning of section 
        50(a)). <<NOTE: Determination.>>  The period and percentage of 
        such recapture shall be determined under rules similar to the 
        rules of section 50(a). To the extent <<NOTE: Time period.>>  
        provided by the Secretary, such recapture may not apply with 
        respect to any property if, within 12 months after the date the 
        taxpayer becomes aware (or reasonably should have become aware) 
        of such property ceasing to be property eligible for such 
        increase, the eligibility of such property for such increase is 
        restored. The preceding sentence shall not apply more than once 
        with respect to any facility.

    ``(i) <<NOTE: Deadline.>>  Guidance.--Not later than January 1, 
2025, the Secretary shall issue guidance regarding implementation of 
this section.''.

    (b) Conforming Amendments.--
            (1) Section 46, as amended by section 107(d) of the CHIPS 
        Act of 2022, <<NOTE: 26 USC 46.>>  is amended--

[[Page 136 STAT. 1997]]

                    (A) in paragraph (5), by striking ``and'' at the 
                end,
                    (B) in paragraph (6), by striking the period at the 
                end and inserting ``, and'', and
                    (C) by adding at the end the following:
            ``(7) the clean electricity investment credit.''.
            (2) Section 49(a)(1)(C), as amended by section 107(d) of the 
        CHIPS Act of 2022, <<NOTE: 26 USC 49.>>  is amended--
                    (A) by striking ``and'' at the end of clause (v),
                    (B) by striking the period at the end of clause (vi) 
                and inserting a comma, and
                    (C) by adding at the end the following new clauses:
                          ``(vii) the basis of any qualified property 
                      which is part of a qualified facility under 
                      section 48E, and
                          ``(viii) the basis of any energy storage 
                      technology under section 48E.''.
            (3) Section 50(a)(2)(E), as amended by section 107(d) of the 
        CHIPS Act of 2022, <<NOTE: 26 USC 50.>>  is amended by striking 
        ``or 48D(b)(5)'' and inserting ``48D(b)(5), or 48E(e)''.
            (4) Section 50(c)(3) is amended by inserting ``or clean 
        electricity investment credit'' after ``In the case of any 
        energy credit''.
            (5) The table of sections for subpart E of part IV of 
        subchapter A of chapter 1, as amended by section 107(d) of the 
        CHIPS Act of 2022, <<NOTE: 26 USC 46 prec.>>  is amended by 
        inserting after the item relating to section 48D the following 
        new item:

``48E. Clean electricity investment credit.''.

    (c) <<NOTE: 26 USC 48E note.>>  Effective Date.--The amendments made 
by this section shall apply to property placed in service after December 
31, 2024.
SEC. 13703. COST RECOVERY FOR QUALIFIED FACILITIES, QUALIFIED 
                            PROPERTY, AND ENERGY STORAGE 
                            TECHNOLOGY.

    (a) <<NOTE: 26 USC 168.>>  In General.--Section 168(e)(3)(B) is 
amended--
            (1) in clause (vi)(III), by striking ``and'' at the end,
            (2) in clause (vii), by striking the period at the end and 
        inserting ``, and'', and
            (3) by inserting after clause (vii) the following:
                          ``(viii) any qualified facility (as defined in 
                      section 45Y(b)(1)(A)), any qualified property (as 
                      defined in subsection (b)(2) of section 48E) which 
                      is a qualified investment (as defined in 
                      subsection (b)(1) of such section), or any energy 
                      storage technology (as defined in subsection 
                      (c)(2) of such section).''.

    (b) <<NOTE: 26 USC 168 note.>>  Effective Date.--The amendments made 
by this section shall apply to facilities and property placed in service 
after December 31, 2024.
SEC. 13704. CLEAN FUEL PRODUCTION CREDIT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1, 
as amended by the preceding provisions of this Act, is amended by adding 
at the end the following new section:
``SEC. 45Z. <<NOTE: 26 USC 45Z.>>  CLEAN FUEL PRODUCTION CREDIT.

    ``(a) Amount of Credit.--
            ``(1) In general.--For purposes of section 38, the clean 
        fuel production credit for any taxable year is an amount equal 
        to the product of--

[[Page 136 STAT. 1998]]

                    ``(A) the applicable amount per gallon (or gallon 
                equivalent) with respect to any transportation fuel 
                which is--
                          ``(i) produced by the taxpayer at a qualified 
                      facility, and
                          ``(ii) sold by the taxpayer in a manner 
                      described in paragraph (4) during the taxable 
                      year, and
                    ``(B) the emissions factor for such fuel (as 
                determined under subsection (b)).
            ``(2) Applicable amount.--
                    ``(A) Base amount.--In the case of any 
                transportation fuel produced at a qualified facility 
                which does not satisfy the requirements described in 
                subparagraph (B), the applicable amount shall be 20 
                cents.
                    ``(B) Alternative amount.--In the case of any 
                transportation fuel produced at a qualified facility 
                which satisfies the requirements under paragraphs (6) 
                and (7) of subsection (f), the applicable amount shall 
                be $1.00.
            ``(3) Special rate for sustainable aviation fuel.--
                    ``(A) In general.--In the case of a transportation 
                fuel which is sustainable aviation fuel, paragraph (2) 
                shall be applied--
                          ``(i) in the case of fuel produced at a 
                      qualified facility described in paragraph (2)(A), 
                      by substituting `35 cents' for `20 cents', and
                          ``(ii) in the case of fuel produced at a 
                      qualified facility described in paragraph (2)(B), 
                      by substituting `$1.75' for `$1.00'.
                    ``(B) <<NOTE: Definition.>>  Sustainable aviation 
                fuel.--For purposes of this subparagraph (A), the term 
                `sustainable aviation fuel' means liquid fuel, the 
                portion of which is not kerosene, which is sold for use 
                in an aircraft and which--
                          ``(i) meets the requirements of--
                                    ``(I) ASTM International Standard 
                                D7566, or
                                    ``(II) the Fischer Tropsch 
                                provisions of ASTM International 
                                Standard D1655, Annex A1, and
                          ``(ii) is not derived from palm fatty acid 
                      distillates or petroleum.
            ``(4) Sale.--For purposes of paragraph (1), the 
        transportation fuel is sold in a manner described in this 
        paragraph if such fuel is sold by the taxpayer to an unrelated 
        person--
                    ``(A) for use by such person in the production of a 
                fuel mixture,
                    ``(B) for use by such person in a trade or business, 
                or
                    ``(C) who sells such fuel at retail to another 
                person and places such fuel in the fuel tank of such 
                other person.
            ``(5) Rounding.--If any amount determined under paragraph 
        (1) is not a multiple of 1 cent, such amount shall be rounded to 
        the nearest cent.

    ``(b) Emissions Factors.--
            ``(1) <<NOTE: Determinations.>>  Emissions factor.--
                    ``(A) Calculation.--
                          ``(i) In general.--The emissions factor of a 
                      transportation fuel shall be an amount equal to 
                      the quotient of--
                                    ``(I) an amount equal to--

[[Page 136 STAT. 1999]]

                                            ``(aa) 50 kilograms of 
                                        CO<INF>2</INF>e per mmBTU, minus
                                            ``(bb) the emissions rate 
                                        for such fuel, divided by
                                    ``(II) 50 kilograms of 
                                CO<INF>2</INF>e per mmBTU.
                    ``(B) Establishment of emissions rate.--
                          ``(i) <<NOTE: Publication.>>  In general.--
                      Subject to clauses (ii) and (iii), the Secretary 
                      shall annually publish a table which sets forth 
                      the emissions rate for similar types and 
                      categories of transportation fuels based on the 
                      amount of lifecycle greenhouse gas emissions (as 
                      described in section 211(o)(1)(H) of the Clean Air 
                      Act (42 U.S.C. 7545(o)(1)(H)), as in effect on the 
                      date of the enactment of this section) for such 
                      fuels, expressed as kilograms of CO<INF>2</INF>e 
                      per mmBTU, which a taxpayer shall use for purposes 
                      of this section.
                          ``(ii) Non-aviation fuel.--In the case of any 
                      transportation fuel which is not a sustainable 
                      aviation fuel, the lifecycle greenhouse gas 
                      emissions of such fuel shall be based on the most 
                      recent determinations under the Greenhouse gases, 
                      Regulated Emissions, and Energy use in 
                      Transportation model developed by Argonne National 
                      Laboratory, or a successor model (as determined by 
                      the Secretary).
                          ``(iii) Aviation fuel.--In the case of any 
                      transportation fuel which is a sustainable 
                      aviation fuel, the lifecycle greenhouse gas 
                      emissions of such fuel shall be determined in 
                      accordance with--
                                    ``(I) the most recent Carbon 
                                Offsetting and Reduction Scheme for 
                                International Aviation which has been 
                                adopted by the International Civil 
                                Aviation Organization with the agreement 
                                of the United States, or
                                    ``(II) any similar methodology which 
                                satisfies the criteria under section 
                                211(o)(1)(H) of the Clean Air Act (42 
                                U.S.C. 7545(o)(1)(H)), as in effect on 
                                the date of enactment of this section.
                    ``(C) Rounding of emissions rate.--
                          ``(i) In general.--Subject to clause (ii), the 
                      Secretary may round the emissions rates under 
                      subparagraph (B) to the nearest multiple of 5 
                      kilograms of CO<INF>2</INF>e per mmBTU.
                          ``(ii) Exception.--In the case of an emissions 
                      rate that is between 2.5 kilograms of 
                      CO<INF>2</INF>e per mmBTU and -2.5 kilograms of 
                      CO<INF>2</INF>e per mmBTU, the Secretary may round 
                      such rate to zero.
                    ``(D) Provisional emissions rate.--In the case of 
                any transportation fuel for which an emissions rate has 
                not been established under subparagraph (B), a taxpayer 
                producing such fuel may file a petition with the 
                Secretary for determination of the emissions rate with 
                respect to such fuel.
            ``(2) Rounding.--If any amount determined under paragraph 
        (1)(A) is not a multiple of 0.1, such amount shall be rounded to 
        the nearest multiple of 0.1.

    ``(c) Inflation Adjustment.--

[[Page 136 STAT. 2000]]

            ``(1) <<NOTE: Effective date.>>  In general.--In the case of 
        calendar years beginning after 2024, the 20 cent amount in 
        subsection (a)(2)(A), the $1.00 amount in subsection (a)(2)(B), 
        the 35 cent amount in subsection (a)(3)(A)(i), and the $1.75 
        amount in subsection (a)(3)(A)(ii) shall each be adjusted by 
        multiplying such amount by the inflation adjustment factor for 
        the calendar year in which the sale of the transportation fuel 
        occurs. If any amount as increased under the preceding sentence 
        is not a multiple of 1 cent, such amount shall be rounded to the 
        nearest multiple of 1 cent.
            ``(2) <<NOTE: Determination. Publication.>>  Inflation 
        adjustment factor.--For purposes of paragraph (1), the inflation 
        adjustment factor shall be the inflation adjustment factor 
        determined and published by the Secretary pursuant to section 
        45Y(c), determined by substituting `calendar year 2022' for 
        `calendar year 1992' in paragraph (3) thereof.

    ``(d) Definitions.--In this section:
            ``(1) mmBTU.--The term `mmBTU' means 1,000,000 British 
        thermal units.
            ``(2) CO<INF>2</INF>e.--The term `CO<INF>2</INF>e' means, 
        with respect to any greenhouse gas, the equivalent carbon 
        dioxide (as determined based on relative global warming 
        potential).
            ``(3) Greenhouse gas.--The term `greenhouse gas' has the 
        same meaning given that term under section 211(o)(1)(G) of the 
        Clean Air Act (42 U.S.C. 7545(o)(1)(G)), as in effect on the 
        date of the enactment of this section.
            ``(4) Qualified facility.--The term `qualified facility'--
                    ``(A) means a facility used for the production of 
                transportation fuels, and
                    ``(B) does not include any facility for which one of 
                the following credits is allowed under section 38 for 
                the taxable year:
                          ``(i) The credit for production of clean 
                      hydrogen under section 45V.
                          ``(ii) The credit determined under section 46 
                      to the extent that such credit is attributable to 
                      the energy credit determined under section 48 with 
                      respect to any specified clean hydrogen production 
                      facility for which an election is made under 
                      subsection (a)(15) of such section.
                          ``(iii) The credit for carbon oxide 
                      sequestration under section 45Q.
            ``(5) Transportation fuel.--
                    ``(A) In general.--The term `transportation fuel' 
                means a fuel which--
                          ``(i) is suitable for use as a fuel in a 
                      highway vehicle or aircraft,
                          ``(ii) has an emissions rate which is not 
                      greater than 50 kilograms of CO<INF>2</INF>e per 
                      mmBTU, and
                          ``(iii) is not derived from coprocessing an 
                      applicable material (or materials derived from an 
                      applicable material) with a feedstock which is not 
                      biomass.
                    ``(B) Definitions.--In this paragraph--
                          ``(i) Applicable material.--The term 
                      `applicable material' means--
                                    ``(I) monoglycerides, diglycerides, 
                                and triglycerides,
                                    ``(II) free fatty acids, and

[[Page 136 STAT. 2001]]

                                    ``(III) fatty acid esters.
                          ``(ii) Biomass.--The term `biomass' has the 
                      same meaning given such term in section 45K(c)(3).

    ``(e) <<NOTE: Deadline. Determination.>>  Guidance.--Not later than 
January 1, 2025, the Secretary shall issue guidance regarding 
implementation of this section, including calculation of emissions 
factors for transportation fuel, the table described in subsection 
(b)(1)(B)(i), and the determination of clean fuel production credits 
under this section.

    ``(f) <<NOTE: Applicability.>>  Special Rules.--
            ``(1) Only registered production in the united states taken 
        into account.--
                    ``(A) In general.--No clean fuel production credit 
                shall be determined under subsection (a) with respect to 
                any transportation fuel unless--
                          ``(i) the taxpayer--
                                    ``(I) is registered as a producer of 
                                clean fuel under section 4101 at the 
                                time of production, and
                                    ``(II) in the case of any 
                                transportation fuel which is a 
                                sustainable aviation fuel, provides--
                                            
                                        ``(aa) <<NOTE: Certification.>>  
                                        certification (in such form and 
                                        manner as the Secretary shall 
                                        prescribe) from an unrelated 
                                        party demonstrating compliance 
                                        with--
                                                ``(AA) any general 
                                            requirements, supply chain 
                                            traceability requirements, 
                                            and information transmission 
                                            requirements established 
                                            under the Carbon Offsetting 
                                            and Reduction Scheme for 
                                            International Aviation 
                                            described in subclause (I) 
                                            of subsection 
                                            (b)(1)(B)(iii), or
                                                ``(BB) in the case of 
                                            any methodology described in 
                                            subclause (II) of such 
                                            subsection, requirements 
                                            similar to the requirements 
                                            described in subitem (AA), 
                                            and
                                            ``(bb) such other 
                                        information with respect to such 
                                        fuel as the Secretary may 
                                        require for purposes of carrying 
                                        out this section, and
                          ``(ii) such fuel is produced in the United 
                      States.
                    ``(B) <<NOTE: Definition.>>  United states.--For 
                purposes of this paragraph, the term `United States' 
                includes any possession of the United States.
            ``(2) Production attributable to the taxpayer.--In the case 
        of a facility in which more than 1 person has an ownership 
        interest, except to the extent provided in regulations 
        prescribed by the Secretary, production from the facility shall 
        be allocated among such persons in proportion to their 
        respective ownership interests in the gross sales from such 
        facility.
            ``(3) Related persons.--Persons shall be treated as related 
        to each other if such persons would be treated as a single 
        employer under the regulations prescribed under section 52(b). 
        In the case of a corporation which is a member of an affiliated 
        group of corporations filing a consolidated return, such 
        corporation shall be treated as selling fuel to an unrelated 
        person if such fuel is sold to such a person by another member 
        of such group.

[[Page 136 STAT. 2002]]

            ``(4) Pass-thru in the case of estates and trusts.--Under 
        regulations prescribed by the Secretary, rules similar to the 
        rules of subsection (d) of section 52 shall apply.
            ``(5) Allocation of credit to patrons of agricultural 
        cooperative.--Rules similar to the rules of section 45Y(g)(6) 
        shall apply.
            ``(6) Prevailing wage requirements.--
                    ``(A) In general.--Subject to subparagraph (B), 
                rules similar to the rules of section 45(b)(7) shall 
                apply.
                    ``(B) Special rule for facilities placed in service 
                before january 1, 2025.--For purposes of subparagraph 
                (A), in the case of any qualified facility placed in 
                service before January 1, 2025--
                          ``(i) clause (i) of section 45(b)(7)(A) shall 
                      not apply, and
                          ``(ii) clause (ii) of such section shall be 
                      applied by substituting `with respect to any 
                      taxable year beginning after December 31, 2024, 
                      for which the credit is allowed under this 
                      section' for `with respect to any taxable year, 
                      for any portion of such taxable year which is 
                      within the period described in subsection 
                      (a)(2)(A)(ii)'.
            ``(7) Apprenticeship requirements.--Rules similar to the 
        rules of section 45(b)(8) shall apply.

    ``(g) Termination.--This section shall not apply to transportation 
fuel sold after December 31, 2027.''.
    (b) Conforming Amendments.--
            (1) Section 25C(d)(3), as amended by the preceding 
        provisions of this Act, <<NOTE: 26 USC 25.>>  is amended--
                    (A) in subparagraph (A), by striking ``and'' at the 
                end,
                    (B) in subparagraph (B), by striking the period at 
                the end and inserting ``, and'', and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(C) transportation fuel (as defined in section 
                45Z(d)(5)).''.
            (2) Section 30C(c)(1)(B), as amended by the preceding 
        provisions of this Act, is amended by adding at the end the 
        following new clause:
                          ``(iv) Any transportation fuel (as defined in 
                      section 45Z(d)(5)).''.
            (3) Section 38(b), as amended by the preceding provisions of 
        this Act, is amended--
                    (A) in paragraph (38), by striking ``plus'' at the 
                end,
                    (B) in paragraph (39), by striking the period at the 
                end and inserting ``, plus'', and
                    (C) by adding at the end the following new 
                paragraph:
            ``(40) the clean fuel production credit determined under 
        section 45Z(a).''.
            (4) The table of sections for subpart D of part IV of 
        subchapter A of chapter 1, as amended by the preceding 
        provisions of this Act, <<NOTE: 26 USC 38 prec.>>  is amended by 
        adding at the end the following new item:

``Sec. 45Z. Clean fuel production credit.''.


[[Page 136 STAT. 2003]]


            (5) Section 4101(a)(1), as amended by the preceding 
        provisions of this Act, <<NOTE: 26 USC 4101.>>  is amended by 
        inserting ``every person producing a fuel eligible for the clean 
        fuel production credit (pursuant to section 45Z),'' after 
        ``section 6426(k)(3)),''.

    (c) <<NOTE: 26 USC 45Z note.>>  Effective Date.--The amendments made 
by this section shall apply to transportation fuel produced after 
December 31, 2024.

             PART 8--CREDIT MONETIZATION AND APPROPRIATIONS

SEC. 13801. ELECTIVE PAYMENT FOR ENERGY PROPERTY AND ELECTRICITY 
                            PRODUCED FROM CERTAIN RENEWABLE 
                            RESOURCES, ETC.

    (a) In General.--Subchapter B of chapter 65 is amended by inserting 
after section 6416 the following new section:
``SEC. 6417. <<NOTE: 26 USC 6417.>>  ELECTIVE PAYMENT OF 
                          APPLICABLE CREDITS.

    ``(a) In General.--In the case of an applicable entity making an 
election (at such time and in such manner as the Secretary may provide) 
under this section with respect to any applicable credit determined with 
respect to such entity, such entity shall be treated as making a payment 
against the tax imposed by subtitle A (for the taxable year with respect 
to which such credit was determined) equal to the amount of such credit.
    ``(b) <<NOTE: Definition.>>  Applicable Credit.--The term 
`applicable credit' means each of the following:
            ``(1) So much of the credit for alternative fuel vehicle 
        refueling property allowed under section 30C which, pursuant to 
        subsection (d)(1) of such section, is treated as a credit listed 
        in section 38(b).
            ``(2) So much of the renewable electricity production credit 
        determined under section 45(a) as is attributable to qualified 
        facilities which are originally placed in service after December 
        31, 2022.
            ``(3) So much of the credit for carbon oxide sequestration 
        determined under section 45Q(a) as is attributable to carbon 
        capture equipment which is originally placed in service after 
        December 31, 2022.
            ``(4) The zero-emission nuclear power production credit 
        determined under section 45U(a).
            ``(5) So much of the credit for production of clean hydrogen 
        determined under section 45V(a) as is attributable to qualified 
        clean hydrogen production facilities which are originally placed 
        in service after December 31, 2012.
            ``(6) In the case of a tax-exempt entity described in clause 
        (i), (ii), or (iv) of section 168(h)(2)(A), the credit for 
        qualified commercial vehicles determined under section 45W by 
        reason of subsection (d)(3) thereof.
            ``(7) The credit for advanced manufacturing production under 
        section 45X(a).
            ``(8) The clean electricity production credit determined 
        under section 45Y(a).
            ``(9) The clean fuel production credit determined under 
        section 45Z(a).
            ``(10) The energy credit determined under section 48.

[[Page 136 STAT. 2004]]

            ``(11) The qualifying advanced energy project credit 
        determined under section 48C.
            ``(12) The clean electricity investment credit determined 
        under section 48E.

    ``(c) Application to Partnerships and S Corporations.--
            ``(1) In general.--In the case of any applicable credit 
        determined with respect to any facility or property held 
        directly by a partnership or S corporation, any election under 
        subsection (a) shall be made by such partnership or S 
        corporation. If such partnership or S corporation makes an 
        election under such subsection (in such manner as the Secretary 
        may provide) with respect to such credit--
                    ``(A) the Secretary shall make a payment to such 
                partnership or S corporation equal to the amount of such 
                credit,
                    ``(B) subsection (e) shall be applied with respect 
                to such credit before determining any partner's 
                distributive share, or shareholder's pro rata share, of 
                such credit,
                    ``(C) any amount with respect to which the election 
                in subsection (a) is made shall be treated as tax exempt 
                income for purposes of sections 705 and 1366, and
                    ``(D) a partner's distributive share of such tax 
                exempt income shall be based on such partner's 
                distributive share of the otherwise applicable credit 
                for each taxable year.
            ``(2) Coordination with application at partner or 
        shareholder level.--In the case of any facility or property held 
        directly by a partnership or S corporation, no election by any 
        partner or shareholder shall be allowed under subsection (a) 
        with respect to any applicable credit determined with respect to 
        such facility or property.
            ``(3) Treatment of payments to partnerships and s 
        corporations.--For purposes of section 1324 of title 31, United 
        States Code, the payments under paragraph (1)(A) shall be 
        treated in the same manner as a refund due from a credit 
        provision referred to in subsection (b)(2) of such section.

    ``(d) Special Rules.--For purposes of this section--
            ``(1) <<NOTE: Definition. Effective dates.>>  Applicable 
        entity.--
                    ``(A) In general.--The term `applicable entity' 
                means--
                          ``(i) any organization exempt from the tax 
                      imposed by subtitle A,
                          ``(ii) any State or political subdivision 
                      thereof,
                          ``(iii) the Tennessee Valley Authority,
                          ``(iv) an Indian tribal government (as defined 
                      in section 30D(g)(9)),
                          ``(v) any Alaska Native Corporation (as 
                      defined in section 3 of the Alaska Native Claims 
                      Settlement Act (43 U.S.C. 1602(m)), or
                          ``(vi) any corporation operating on a 
                      cooperative basis which is engaged in furnishing 
                      electric energy to persons in rural areas.
                    ``(B) Election with respect to credit for production 
                of clean hydrogen.--If a taxpayer other than an entity 
                described in subparagraph (A) makes an election under 
                this subparagraph with respect to any taxable year in 
                which such taxpayer has placed in service a qualified 
                clean hydrogen production facility (as defined in 
                section 45V(c)(3)), such taxpayer shall be treated as an 
                applicable entity for purposes of this section for such 
                taxable year,

[[Page 136 STAT. 2005]]

                but only with respect to the credit described in 
                subsection (b)(5).
                    ``(C) Election with respect to credit for carbon 
                oxide sequestration.--If a taxpayer other than an entity 
                described in subparagraph (A) makes an election under 
                this subparagraph with respect to any taxable year in 
                which such taxpayer has, after December 31, 2022, placed 
                in service carbon capture equipment at a qualified 
                facility (as defined in section 45Q(d)), such taxpayer 
                shall be treated as an applicable entity for purposes of 
                this section for such taxable year, but only with 
                respect to the credit described in subsection (b)(3).
                    ``(D) Election with respect to advanced 
                manufacturing production credit.--
                          ``(i) In general.--If a taxpayer other than an 
                      entity described in subparagraph (A) makes an 
                      election under this subparagraph with respect to 
                      any taxable year in which such taxpayer has, after 
                      December 31, 2022, produced eligible components 
                      (as defined in section 45X(c)(1)), such taxpayer 
                      shall be treated as an applicable entity for 
                      purposes of this section for such taxable year, 
                      but only with respect to the credit described in 
                      subsection (b)(7).
                          ``(ii) Limitation.--
                                    ``(I) In general.--Except as 
                                provided in subclause (II), if a 
                                taxpayer makes an election under this 
                                subparagraph with respect to any taxable 
                                year, such taxpayer shall be treated as 
                                having made such election for each of 
                                the 4 succeeding taxable years ending 
                                before January 1, 2033.
                                    ``(II) Exception.--A taxpayer may 
                                elect to revoke the application of the 
                                election made under this subparagraph to 
                                any taxable year described in subclause 
                                (I). Any such election, if made, shall 
                                apply to the applicable year specified 
                                in such election and each subsequent 
                                taxable year within the period described 
                                in subclause (I). Any election under 
                                this subclause may not be subsequently 
                                revoked.
                          ``(iii) Prohibition on transfer.--For any 
                      taxable year described in clause (ii)(I), no 
                      election may be made by the taxpayer under section 
                      6418(a) for such taxable year with respect to 
                      eligible components for purposes of the credit 
                      described in subsection (b)(7).
                    ``(E) Other rules.--
                          ``(i) In general.--An election made under 
                      subparagraph (B), (C), or (D) shall be made at 
                      such time and in such manner as the Secretary may 
                      provide.
                          ``(ii) <<NOTE: Effective date.>>  
                      Limitation.--No election may be made under 
                      subparagraph (B), (C), or (D) with respect to any 
                      taxable year beginning after December 31, 2032.
            ``(2) <<NOTE: Determination.>>  Application.--In the case of 
        any applicable entity which makes the election described in 
        subsection (a), any applicable credit shall be determined--
                    ``(A) without regard to paragraphs (3) and (4)(A)(i) 
                of section 50(b), and

[[Page 136 STAT. 2006]]

                    ``(B) by treating any property with respect to which 
                such credit is determined as used in a trade or business 
                of the applicable entity.
            ``(3) Elections.--
                    ``(A) In general.--
                          ``(i) Due date.--Any election under subsection 
                      (a) shall be made not later than--
                                    ``(I) in the case of any government, 
                                or political subdivision, described in 
                                paragraph (1) and for which no return is 
                                required under section 6011 or 6033(a), 
                                such date as is determined appropriate 
                                by the Secretary, or
                                    ``(II) in any other case, the due 
                                date (including extensions of time) for 
                                the return of tax for the taxable year 
                                for which the election is made, but in 
                                no event earlier than 180 days after the 
                                date of the enactment of this section.
                          ``(ii) <<NOTE: Applicability.>>  Additional 
                      rules.--Any election under subsection (a), once 
                      made, shall be irrevocable and shall apply (except 
                      as otherwise provided in this paragraph) with 
                      respect to any credit for the taxable year for 
                      which the election is made.
                    ``(B) <<NOTE: Applicability.>>  Renewable 
                electricity production credit.--In the case of the 
                credit described in subsection (b)(2), any election 
                under subsection (a) shall--
                          ``(i) apply separately with respect to each 
                      qualified facility,
                          ``(ii) be made for the taxable year in which 
                      such qualified facility is originally placed in 
                      service, and
                          ``(iii) shall apply to such taxable year and 
                      to any subsequent taxable year which is within the 
                      period described in subsection (a)(2)(A)(ii) of 
                      section 45 with respect to such qualified 
                      facility.
                    ``(C) Credit for carbon oxide sequestration.--
                          ``(i) <<NOTE: Applicability.>>  In general.--
                      In the case of the credit described in subsection 
                      (b)(3), any election under subsection (a) shall--
                                    ``(I) apply separately with respect 
                                to the carbon capture equipment 
                                originally placed in service by the 
                                applicable entity during a taxable year, 
                                and
                                    ``(II)(aa) <<NOTE: Time period.>>  
                                in the case of a taxpayer who makes an 
                                election described in paragraph (1)(C), 
                                apply to the taxable year in which such 
                                equipment is placed in service and the 4 
                                subsequent taxable years with respect to 
                                such equipment which end before January 
                                1, 2033, and
                                    ``(bb) in any other case, apply to 
                                such taxable year and to any subsequent 
                                taxable year which is within the period 
                                described in paragraph (3)(A) or (4)(A) 
                                of section 45Q(a) with respect to such 
                                equipment.
                          ``(ii) Prohibition on transfer.--For any 
                      taxable year described in clause (i)(II)(aa) with 
                      respect to carbon capture equipment, no election 
                      may be made by the taxpayer under section 6418(a) 
                      for such taxable year with respect to such 
                      equipment for purposes of the credit described in 
                      subsection (b)(3).

[[Page 136 STAT. 2007]]

                          ``(iii) Revocation of election.--In the case 
                      of a taxpayer who makes an election described in 
                      paragraph (1)(C) with respect to carbon capture 
                      equipment, such taxpayer may, at any time during 
                      the period described in clause (i)(II)(aa), revoke 
                      the application of such election with respect to 
                      such equipment for any subsequent taxable years 
                      during such period. <<NOTE: Applicability.>>  Any 
                      such election, if made, shall apply to the 
                      applicable year specified in such election and 
                      each subsequent taxable year within the period 
                      described in clause (i)(II)(aa). Any election 
                      under this subclause may not be subsequently 
                      revoked.
                    ``(D) <<NOTE: Applicability. Time period.>>  Credit 
                for production of clean hydrogen.--
                          ``(i) In general.--In the case of the credit 
                      described in subsection (b)(5), any election under 
                      subsection (a) shall--
                                    ``(I) apply separately with respect 
                                to each qualified clean hydrogen 
                                production facility,
                                    ``(II) be made for the taxable year 
                                in which such facility is placed in 
                                service (or within the 1-year period 
                                subsequent to the date of enactment of 
                                this section in the case of facilities 
                                placed in service before December 31, 
                                2022), and
                                    ``(III)(aa) in the case of a 
                                taxpayer who makes an election described 
                                in paragraph (1)(B), apply to such 
                                taxable year and the 4 subsequent 
                                taxable years with respect to such 
                                facility which end before January 1, 
                                2033, and
                                    ``(bb) in any other case, apply to 
                                such taxable year and all subsequent 
                                taxable years with respect to such 
                                facility.
                          ``(ii) Prohibition on transfer.--For any 
                      taxable year described in clause (i)(III)(aa) with 
                      respect to a qualified clean hydrogen production 
                      facility, no election may be made by the taxpayer 
                      under section 6418(a) for such taxable year with 
                      respect to such facility for purposes of the 
                      credit described in subsection (b)(5).
                          ``(iii) Revocation of election.--In the case 
                      of a taxpayer who makes an election described in 
                      paragraph (1)(B) with respect to a qualified clean 
                      hydrogen production facility, such taxpayer may, 
                      at any time during the period described in clause 
                      (i)(III)(aa), revoke the application of such 
                      election with respect to such facility for any 
                      subsequent taxable years during such period. Any 
                      such election, <<NOTE: Applicability.>>  if made, 
                      shall apply to the applicable year specified in 
                      such election and each subsequent taxable year 
                      within the period described in clause (i)(II)(aa). 
                      Any election under this subclause may not be 
                      subsequently revoked.
                    ``(E) <<NOTE: Applicability.>>  Clean electricity 
                production credit.--In the case of the credit described 
                in subsection (b)(8), any election under subsection (a) 
                shall--
                          ``(i) apply separately with respect to each 
                      qualified facility,
                          ``(ii) be made for the taxable year in which 
                      such facility is placed in service, and

[[Page 136 STAT. 2008]]

                          ``(iii) shall apply to such taxable year and 
                      to any subsequent taxable year which is within the 
                      period described in subsection (b)(1)(B) of 
                      section 45Y with respect to such facility.
            ``(4) Timing.--The payment described in subsection (a) shall 
        be treated as made on--
                    ``(A) <<NOTE: Claims.>>  in the case of any 
                government, or political subdivision, described in 
                paragraph (1) and for which no return is required under 
                section 6011 or 6033(a), the later of the date that a 
                return would be due under section 6033(a) if such 
                government or subdivision were described in that section 
                or the date on which such government or subdivision 
                submits a claim for credit or refund (at such time and 
                in such manner as the Secretary shall provide), and
                    ``(B) <<NOTE: Determination.>>  in any other case, 
                the later of the due date (determined without regard to 
                extensions) of the return of tax for the taxable year or 
                the date on which such return is filed.
            ``(5) Additional information.--As a condition of, and prior 
        to, any amount being treated as a payment which is made by an 
        applicable entity under subsection (a), the Secretary may 
        require such information or registration as the Secretary deems 
        necessary for purposes of preventing duplication, fraud, 
        improper payments, or excessive payments under this section.
            ``(6) Excessive payment.--
                    ``(A) <<NOTE: Determination.>>  In general.--In the 
                case of any amount treated as a payment which is made by 
                the applicable entity under subsection (a), or the 
                amount of the payment made pursuant to subsection (c), 
                which the Secretary determines constitutes an excessive 
                payment, the tax imposed on such entity by chapter 1 
                (regardless of whether such entity would otherwise be 
                subject to tax under such chapter) for the taxable year 
                in which such determination is made shall be increased 
                by an amount equal to the sum of--
                          ``(i) the amount of such excessive payment, 
                      plus
                          ``(ii) an amount equal to 20 percent of such 
                      excessive payment.
                    ``(B) Reasonable cause.--Subparagraph (A)(ii) shall 
                not apply if the applicable entity demonstrates to the 
                satisfaction of the Secretary that the excessive payment 
                resulted from reasonable cause.
                    ``(C) Excessive payment defined.--For purposes of 
                this paragraph, the term `excessive payment' means, with 
                respect to a facility or property for which an election 
                is made under this section for any taxable year, an 
                amount equal to the excess of--
                          ``(i) the amount treated as a payment which is 
                      made by the applicable entity under subsection 
                      (a), or the amount of the payment made pursuant to 
                      subsection (c), with respect to such facility or 
                      property for such taxable year, over
                          ``(ii) the amount of the credit which, without 
                      application of this section, would be otherwise 
                      allowable (as determined pursuant to paragraph (2) 
                      and without regard to section 38(c)) under this 
                      title with respect to such facility or property 
                      for such taxable year.

[[Page 136 STAT. 2009]]

    ``(e) Denial of Double Benefit.--In the case of an applicable entity 
making an election under this section with respect to an applicable 
credit, such credit shall be reduced to zero and shall, for any other 
purposes under this title, be deemed to have been allowed to such entity 
for such taxable year.
    ``(f) <<NOTE: Determination.>>  Mirror Code Possessions.--In the 
case of any possession of the United States with a mirror code tax 
system (as defined in section 24(k)), this section shall not be treated 
as part of the income tax laws of the United States for purposes of 
determining the income tax law of such possession unless such possession 
elects to have this section be so treated.

    ``(g) <<NOTE: Applicability.>>  Basis Reduction and Recapture.--
Except as otherwise provided in subsection (c)(2)(A), rules similar to 
the rules of section 50 shall apply for purposes of this section.

    ``(h) <<NOTE: Guidelines.>>  Regulations.--The Secretary shall issue 
such regulations or other guidance as may be necessary to carry out the 
purposes of this section, including guidance to ensure that the amount 
of the payment or deemed payment made under this section is commensurate 
with the amount of the credit that would be otherwise allowable 
(determined without regard to section 38(c)).''.

    (b) Transfer of Certain Credits.--Subchapter B of chapter 65, as 
amended by subsection (a), is amended by inserting after section 6417 
the following new section:
``SEC. 6418. <<NOTE: 26 USC 6418.>>  TRANSFER OF CERTAIN CREDITS.

    ``(a) In General.--In the case of an eligible taxpayer which elects 
to transfer all (or any portion specified in the election) of an 
eligible credit determined with respect to such taxpayer for any taxable 
year to a taxpayer (referred to in this section as the `transferee 
taxpayer') which is not related (within the meaning of section 267(b) or 
707(b)(1)) to the eligible taxpayer, the transferee taxpayer specified 
in such election (and not the eligible taxpayer) shall be treated as the 
taxpayer for purposes of this title with respect to such credit (or such 
portion thereof).
    ``(b) Treatment of Payments Made in Connection With Transfer.--With 
respect to any amount paid by a transferee taxpayer to an eligible 
taxpayer as consideration for a transfer described in subsection (a), 
such consideration--
            ``(1) <<NOTE: Requirement.>>  shall be required to be paid 
        in cash,
            ``(2) shall not be includible in gross income of the 
        eligible taxpayer, and
            ``(3) with respect to the transferee taxpayer, shall not be 
        deductible under this title.

    ``(c) Application to Partnerships and S Corporations.--
            ``(1) In general.--In the case of any eligible credit 
        determined with respect to any facility or property held 
        directly by a partnership or S corporation, if such partnership 
        or S corporation makes an election under subsection (a) (in such 
        manner as the Secretary may provide) with respect to such 
        credit--
                    ``(A) any amount received as consideration for a 
                transfer described in such subsection shall be treated 
                as tax exempt income for purposes of sections 705 and 
                1366, and
                    ``(B) a partner's distributive share of such tax 
                exempt income shall be based on such partner's 
                distributive share of the otherwise eligible credit for 
                each taxable year.

[[Page 136 STAT. 2010]]

            ``(2) Coordination with application at partner or 
        shareholder level.--In the case of any facility or property held 
        directly by a partnership or S corporation, no election by any 
        partner or shareholder shall be allowed under subsection (a) 
        with respect to any eligible credit determined with respect to 
        such facility or property.

    ``(d) Taxable Year in Which Credit Taken Into Account.--In the case 
of any credit (or portion thereof) with respect to which an election is 
made under subsection (a), such credit shall be taken into account in 
the first taxable year of the transferee taxpayer ending with, or after, 
the taxable year of the eligible taxpayer with respect to which the 
credit was determined.
    ``(e) Limitations on Election.--
            ``(1) <<NOTE: Deadline. Time period.>>  Time for election.--
        An election under subsection (a) to transfer any portion of an 
        eligible credit shall be made not later than the due date 
        (including extensions of time) for the return of tax for the 
        taxable year for which the credit is determined, but in no event 
        earlier than 180 days after the date of the enactment of this 
        section. Any such election, once made, shall be irrevocable.
            ``(2) No additional transfers.--No election may be made 
        under subsection (a) by a transferee taxpayer with respect to 
        any portion of an eligible credit which has been previously 
        transferred to such taxpayer pursuant to this section.

    ``(f) Definitions.--For purposes of this section--
            ``(1) Eligible credit.--
                    ``(A) In general.--The term `eligible credit' means 
                each of the following:
                          ``(i) So much of the credit for alternative 
                      fuel vehicle refueling property allowed under 
                      section 30C which, pursuant to subsection (d)(1) 
                      of such section, is treated as a credit listed in 
                      section 38(b).
                          ``(ii) The renewable electricity production 
                      credit determined under section 45(a).
                          ``(iii) The credit for carbon oxide 
                      sequestration determined under section 45Q(a).
                          ``(iv) The zero-emission nuclear power 
                      production credit determined under section 45U(a).
                          ``(v) The clean hydrogen production credit 
                      determined under section 45V(a).
                          ``(vi) The advanced manufacturing production 
                      credit determined under section 45X(a).
                          ``(vii) The clean electricity production 
                      credit determined under section 45Y(a).
                          ``(viii) The clean fuel production credit 
                      determined under section 45Z(a).
                          ``(ix) The energy credit determined under 
                      section 48.
                          ``(x) The qualifying advanced energy project 
                      credit determined under section 48C.
                          ``(xi) The clean electricity investment credit 
                      determined under section 48E.
                    ``(B) Election for certain credits.--In the case of 
                any eligible credit described in clause (ii), (iii), 
                (v), or (vii) of subparagraph (A), an election under 
                subsection (a) shall be made--

[[Page 136 STAT. 2011]]

                          ``(i) separately with respect to each facility 
                      for which such credit is determined, and
                          ``(ii) <<NOTE: Time periods. Effective 
                      dates.>>  for each taxable year during the 10-year 
                      period beginning on the date such facility was 
                      originally placed in service (or, in the case of 
                      the credit described in clause (iii), for each 
                      year during the 12-year period beginning on the 
                      date the carbon capture equipment was originally 
                      placed in service at such facility).
                    ``(C) Exception for business credit carryforwards or 
                carrybacks.--The term `eligible credit' shall not 
                include any business credit carryforward or business 
                credit carryback determined under section 39.
            ``(2) Eligible taxpayer.--The term `eligible taxpayer' means 
        any taxpayer which is not described in section 6417(d)(1)(A).

    ``(g) Special Rules.--For purposes of this section--
            ``(1) <<NOTE: Determination.>>  Additional information.--As 
        a condition of, and prior to, any transfer of any portion of an 
        eligible credit pursuant to subsection (a), the Secretary may 
        require such information (including, in such form or manner as 
        is determined appropriate by the Secretary, such information 
        returns) or registration as the Secretary deems necessary for 
        purposes of preventing duplication, fraud, improper payments, or 
        excessive payments under this section.
            ``(2) Excessive credit transfer.--
                    ``(A) <<NOTE: Determination.>>  In general.--In the 
                case of any portion of an eligible credit which is 
                transferred to a transferee taxpayer pursuant to 
                subsection (a) which the Secretary determines 
                constitutes an excessive credit transfer, the tax 
                imposed on the transferee taxpayer by chapter 1 
                (regardless of whether such entity would otherwise be 
                subject to tax under such chapter) for the taxable year 
                in which such determination is made shall be increased 
                by an amount equal to the sum of--
                          ``(i) the amount of such excessive credit 
                      transfer, plus
                          ``(ii) an amount equal to 20 percent of such 
                      excessive credit transfer.
                    ``(B) Reasonable cause.--Subparagraph (A)(ii) shall 
                not apply if the transferee taxpayer demonstrates to the 
                satisfaction of the Secretary that the excessive credit 
                transfer resulted from reasonable cause.
                    ``(C) <<NOTE: Definition.>>  Excessive credit 
                transfer defined.--For purposes of this paragraph, the 
                term `excessive credit transfer' means, with respect to 
                a facility or property for which an election is made 
                under subsection (a) for any taxable year, an amount 
                equal to the excess of--
                          ``(i) the amount of the eligible credit 
                      claimed by the transferee taxpayer with respect to 
                      such facility or property for such taxable year, 
                      over
                          ``(ii) the amount of such credit which, 
                      without application of this section, would be 
                      otherwise allowable under this title with respect 
                      to such facility or property for such taxable 
                      year.
            ``(3) Basis reduction; notification of recapture.--In the 
        case of any election under subsection (a) with respect to

[[Page 136 STAT. 2012]]

        any portion of an eligible credit described in clauses (ix) 
        through (xi) of subsection (f)(1)(A)--
                    ``(A) <<NOTE: Applicability.>>  subsection (c) of 
                section 50 shall apply to the applicable investment 
                credit property (as defined in subsection (a)(5) of such 
                section) as if such eligible credit was allowed to the 
                eligible taxpayer, and
                    ``(B) <<NOTE: Notices.>>  if, during any taxable 
                year, the applicable investment credit property (as 
                defined in subsection (a)(5) of section 50) is disposed 
                of, or otherwise ceases to be investment credit property 
                with respect to the eligible taxpayer, before the close 
                of the recapture period (as described in subsection 
                (a)(1) of such section)--
                          ``(i) such eligible taxpayer shall provide 
                      notice of such occurrence to the transferee 
                      taxpayer (in such form and manner as the Secretary 
                      shall prescribe), and
                          ``(ii) the transferee taxpayer shall provide 
                      notice of the recapture amount (as defined in 
                      subsection (c)(2) of such section), if any, to the 
                      eligible taxpayer (in such form and manner as the 
                      Secretary shall prescribe).
            ``(4) Prohibition on election or transfer with respect to 
        progress expenditures.--This section shall not apply with 
        respect to any amount of an eligible credit which is allowed 
        pursuant to rules similar to the rules of subsections (c)(4) and 
        (d) of section 46 (as in effect on the day before the date of 
        the enactment of the Revenue Reconciliation Act of 1990).

    ``(h) <<NOTE: Guidelines.>>  Regulations.--The Secretary shall issue 
such regulations or other guidance as may be necessary to carry out the 
purposes of this section, including regulations or other guidance 
providing rules for determining a partner's distributive share of the 
tax exempt income described in subsection (c)(1).''.

    (c) <<NOTE: 26 USC 50.>>  Real Estate Investment Trusts.--Section 
50(d) is amended by adding at the end the following: ``In the case of a 
real estate investment trust making an election under section 6418, 
paragraphs (1)(B) and (2)(B) of the section 46(e) referred to in 
paragraph (1) of this subsection shall not apply to any investment 
credit property of such real estate investment trust to which such 
election applies.''.

    (d) 3-year Carryback for Applicable Credits.--Section 39(a) is 
amended by adding at the end the following:
            ``(4) 3-year carryback for applicable credits.--
        Notwithstanding subsection (d), in the case of any applicable 
        credit (as defined in section 6417(b))--
                    ``(A) this section shall be applied separately from 
                the business credit (other than the applicable credit),
                    ``(B) paragraph (1) shall be applied by substituting 
                `each of the 3 taxable years' for `the taxable year' in 
                subparagraph (A) thereof, and
                    ``(C) paragraph (2) shall be applied--
                          ``(i) by substituting `23 taxable years' for 
                      `21 taxable years' in subparagraph (A) thereof, 
                      and
                          ``(ii) by substituting `22 taxable years' for 
                      `20 taxable years' in subparagraph (B) thereof.''.

[[Page 136 STAT. 2013]]

    (e) Clerical Amendment.--The table of sections for subchapter B of 
chapter 65 <<NOTE: 26 USC 6411 prec.>>  is amended by inserting after 
the item relating to section 6416 the following new items:

``Sec. 6417. Elective payment of applicable credits.
``Sec. 6418. Transfer of certain credits.''.

    (f) <<NOTE: Effective date. Time periods. 26 USC 6417 note.>>  
Gross-up of Direct Spending.--Beginning in fiscal year 2023 and each 
fiscal year thereafter, the portion of any payment made to a taxpayer 
pursuant to an election under section 6417 of the Internal Revenue Code 
of 1986, or any amount treated as a payment which is made by the 
taxpayer under subsection (a) of such section, that is direct spending 
shall be increased by 6.0445 percent.

    (g) <<NOTE: 26 USC 6417 note.>>  Effective Date.--The amendments 
made by this section shall apply to taxable years beginning after 
December 31, 2022.
SEC. 13802. <<NOTE: Effective date.>>  APPROPRIATIONS.

    Immediately upon the enactment of this Act, in addition to amounts 
otherwise available, there are appropriated for fiscal year 2022, out of 
any money in the Treasury not otherwise appropriated, $500,000,000 to 
remain available until September 30, 2031, for necessary expenses for 
the Internal Revenue Service to carry out this subtitle (and the 
amendments made by this subtitle), which shall supplement and not 
supplant any other appropriations that may be available for this 
purpose.

                        PART 9--OTHER PROVISIONS

SEC. 13901. PERMANENT EXTENSION OF TAX RATE TO FUND BLACK LUNG 
                            DISABILITY TRUST FUND.

    (a) <<NOTE: 26 USC 4121.>>  In General.--Section 4121 is amended by 
striking subsection (e).

    (b) <<NOTE: 26 USC 4121 note.>>  Effective Date.--The amendment made 
by this section shall apply to sales in calendar quarters beginning 
after the date which is 1 day after the date of enactment of this Act.
SEC. 13902. INCREASE IN RESEARCH CREDIT AGAINST PAYROLL TAX FOR 
                            SMALL BUSINESSES.

    (a) In General.--Clause (i) of section 41(h)(4)(B) is amended--
            (1) by striking ``Amount.--The amount'' and inserting 
        ``Amount.--
                                    ``(I) In general.--The amount'', and
            (2) by adding at the end the following new subclause:
                                    ``(II) <<NOTE: Effective date.>>  
                                Increase.--In the case of taxable years 
                                beginning after December 31, 2022, the 
                                amount in subclause (I) shall be 
                                increased by $250,000.''.

    (b) Allowance of Credit.--
            (1) In general.--Paragraph (1) of section 3111(f) is 
        amended--
                    (A) by striking ``for a taxable year, there shall be 
                allowed'' and inserting ``for a taxable year--
                    ``(A) there shall be allowed'',
                    (B) by striking ``equal to the'' and inserting 
                ``equal to so much of the'',
                    (C) by striking the period at the end and inserting 
                ``as does not exceed the limitation of subclause (I) of 
                section 41(h)(4)(B)(i) (applied without regard to 
                subclause (II) thereof), and'', and

[[Page 136 STAT. 2014]]

                    (D) by adding at the end the following new 
                subparagraph:
                    ``(B) there shall be allowed as a credit against the 
                tax imposed by subsection (b) for the first calendar 
                quarter which begins after the date on which the 
                taxpayer files the return specified in section 
                41(h)(4)(A)(ii) an amount equal to so much of the 
                payroll tax credit portion determined under section 
                41(h)(2) as is not allowed as a credit under 
                subparagraph (A).''.
            (2) <<NOTE: 26 USC 3111.>>  Limitation.--Paragraph (2) of 
        section 3111(f) is amended--
                    (A) by striking ``paragraph (1)'' and inserting 
                ``paragraph (1)(A)'', and
                    (B) by inserting ``, and the credit allowed by 
                paragraph (1)(B) shall not exceed the tax imposed by 
                subsection (b) for any calendar quarter,'' after 
                ``calendar quarter''.
            (3) Carryover.--Paragraph (3) of section 3111(f) is amended 
        by striking ``the credit'' and inserting ``any credit''.
            (4) Deduction allowed.--Paragraph (4) of section 3111(f) is 
        amended--
                    (A) by striking ``credit'' and inserting 
                ``credits'', and
                    (B) by striking ``subsection (a)'' and inserting 
                ``subsection (a) or (b)''.

    (c) Aggregation Rules.--Clause (ii) of section 41(h)(5)(B) is 
amended by striking ``the $250,000 amount'' and inserting ``each of the 
$250,000 amounts''.
    (d) <<NOTE: 26 USC 41 note.>>  Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after December 
31, 2022.
SEC. 13903. REINSTATEMENT OF LIMITATION RULES FOR DEDUCTION FOR 
                            STATE AND LOCAL, ETC., TAXES; 
                            EXTENSION OF LIMITATION ON EXCESS 
                            BUSINESS LOSSES OF NONCORPORATE 
                            TAXPAYERS.

    (a) Reinstatement of Limitation Rules for Deduction for State and 
Local, etc., Taxes.--
            (1) In general.--Section 164(b)(6), as amended by section 
        13904, is further amended--
                    (A) in the heading, by striking ``2026'' and 
                inserting ``2025'', and
                    (B) by striking ``2027'' and inserting ``2026''.
            (2) <<NOTE: 26 USC 164 note.>>  Effective date.--The 
        amendments made by this subsection shall apply to taxable years 
        beginning after December 31, 2022.

    (b) Extension of Limitation on Excess Business Losses of 
Noncorporate Taxpayers.--
            (1) In general.--Section 461(l)(1) is amended by striking 
        ``January 1, 2027'' each place it appears and inserting 
        ``January 1, 2029''.
            (2) <<NOTE: 26 USC 461 note.>>  Effective date.--The 
        amendments made by this subsection shall apply to taxable years 
        beginning after December 31, 2026.
SEC. 13904. REMOVAL OF HARMFUL SMALL BUSINESS TAXES; EXTENSION OF 
                            LIMITATION ON DEDUCTION FOR STATE AND 
                            LOCAL, ETC., TAXES.

    (a) Removal of Harmful Small Business Taxes.--Subparagraph (D) of 
section 59(k)(1), as added by section 10101, is amended to read as 
follows:

[[Page 136 STAT. 2015]]

                    ``(D) Special rules for determining applicable 
                corporation status.--Solely for purposes of determining 
                whether a corporation is an applicable corporation under 
                this paragraph, all adjusted financial statement income 
                of persons treated as a single employer with such 
                corporation under subsection (a) or (b) of section 52 
                shall be treated as adjusted financial statement income 
                of such corporation, and adjusted financial statement 
                income of such corporation shall be determined without 
                regard to paragraphs (2)(D)(i) and (11) of section 
                56A(c).''.

    (b) Extension of Limitation on Deduction for State and Local, etc., 
Taxes.--
            (1) In general.--Section 164(b)(6) is amended--
                    (A) in the heading, by striking ``2025'' and 
                inserting ``2026'', and
                    (B) by striking ``2026'' and inserting ``2027''.
            (2) <<NOTE: 26 USC 164 note.>>  Effective date.--The 
        amendments made by this subsection shall apply to taxable years 
        beginning after December 31, 2022.

       TITLE II--COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY

                     Subtitle A--General Provisions

SEC. 20001. <<NOTE: 7 USC 6936 note.>>  DEFINITION OF SECRETARY.

    In this title, the term ``Secretary'' means the Secretary of 
Agriculture.

                        Subtitle B--Conservation

SEC. 21001. ADDITIONAL AGRICULTURAL CONSERVATION INVESTMENTS.

    (a) <<NOTE: Time periods.>>  Appropriations.--In addition to amounts 
otherwise available (and subject to subsection (b)), there are 
appropriated to the Secretary, out of any money in the Treasury not 
otherwise appropriated, to remain available until September 30, 2031 
(subject to the condition that no such funds may be disbursed after 
September 30, 2031)--
            (1) to carry out, using the facilities and authorities of 
        the Commodity Credit Corporation, the environmental quality 
        incentives program under subchapter A of chapter 4 of subtitle D 
        of title XII of the Food Security Act of 1985 (16 U.S.C. 3839aa 
        through 3839aa-8)--
                    (A)(i) $250,000,000 for fiscal year 2023;
                    (ii) $1,750,000,000 for fiscal year 2024;
                    (iii) $3,000,000,000 for fiscal year 2025; and
                    (iv) $3,450,000,000 for fiscal year 2026; and
                    (B) subject to the conditions on the use of the 
                funds that--
                          (i) section 1240B(f)(1) of the Food Security 
                      Act of 1985 (16 U.S.C. 3839aa-2(f)(1)) shall not 
                      apply;

[[Page 136 STAT. 2016]]

                          (ii) <<NOTE: Applicability.>>  section 
                      1240H(c)(2) of the Food Security Act of 1985 (16 
                      U.S.C. 3839aa-8(c)(2)) shall be applied--
                                    (I) by substituting ``$50,000,000'' 
                                for ``$25,000,000''; and
                                    (II) with the Secretary prioritizing 
                                proposals that utilize diet and feed 
                                management to reduce enteric methane 
                                emissions from ruminants; and
                          (iii) <<NOTE: Determination.>>  the funds 
                      shall be available for 1 or more agricultural 
                      conservation practices or enhancements that the 
                      Secretary determines directly improve soil carbon, 
                      reduce nitrogen losses, or reduce, capture, avoid, 
                      or sequester carbon dioxide, methane, or nitrous 
                      oxide emissions, associated with agricultural 
                      production;
            (2) to carry out, using the facilities and authorities of 
        the Commodity Credit Corporation, the conservation stewardship 
        program under subchapter B of that chapter (16 U.S.C. 3839aa-21 
        through 3839aa-25)--
                    (A)(i) $250,000,000 for fiscal year 2023;
                    (ii) $500,000,000 for fiscal year 2024;
                    (iii) $1,000,000,000 for fiscal year 2025; and
                    (iv) $1,500,000,000 for fiscal year 2026; and
                    (B) subject to the condition on the use of the funds 
                that the funds shall only be available for 1 or more 
                agricultural conservation practices, enhancements, or 
                bundles that the Secretary determines directly improve 
                soil carbon, reduce nitrogen losses, or reduce, capture, 
                avoid, or sequester carbon dioxide, methane, or nitrous 
                oxide emissions, associated with agricultural 
                production;
            (3) to carry out, using the facilities and authorities of 
        the Commodity Credit Corporation, the agricultural conservation 
        easement program under subtitle H of title XII of that Act (16 
        U.S.C. 3865 through 3865d) for easements or interests in land 
        that will most reduce, capture, avoid, or sequester carbon 
        dioxide, methane, or nitrous oxide emissions associated with 
        land eligible for the program--
                    (A) $100,000,000 for fiscal year 2023;
                    (B) $200,000,000 for fiscal year 2024;
                    (C) $500,000,000 for fiscal year 2025; and
                    (D) $600,000,000 for fiscal year 2026; and
            (4) to carry out, using the facilities and authorities of 
        the Commodity Credit Corporation, the regional conservation 
        partnership program under subtitle I of title XII of that Act 
        (16 U.S.C. 3871 through 3871f)--
                    (A)(i) $250,000,000 for fiscal year 2023;
                    (ii) $800,000,000 for fiscal year 2024;
                    (iii) $1,500,000,000 for fiscal year 2025; and
                    (iv) $2,400,000,000 for fiscal year 2026; and
                    (B) subject to the conditions on the use of the 
                funds that--
                          (i) section 1271C(d)(2)(B) of the Food 
                      Security Act of 1985 (16 U.S.C. 3871c(d)(2)(B)) 
                      shall not apply; and
                          (ii) the Secretary shall prioritize 
                      partnership agreements under section 1271C(d) of 
                      the Food Security Act of 1985 (16 U.S.C. 3871c(d)) 
                      that support the implementation of conservation 
                      projects that assist agricultural producers and 
                      nonindustrial private

[[Page 136 STAT. 2017]]

                      forestland owners in directly improving soil 
                      carbon, reducing nitrogen losses, or reducing, 
                      capturing, avoiding, or sequestering carbon 
                      dioxide, methane, or nitrous oxide emissions, 
                      associated with agricultural production.

    (b) Conditions.--The funds made available under subsection (a) are 
subject to the conditions that the Secretary shall not--
            (1) enter into any agreement--
                    (A) that is for a term extending beyond September 
                30, 2031; or
                    (B) <<NOTE: Time period.>>  under which any payment 
                could be outlaid or funds disbursed after September 30, 
                2031; or
            (2) use any other funds available to the Secretary to 
        satisfy obligations initially made under this section.

    (c) Conforming Amendments.--
            (1) Section 1240B of the Food Security Act of 1985 (16 
        U.S.C. 3839aa-2) is amended--
                    (A) in subsection (a), by striking ``2023'' and 
                inserting ``2031''; and
                    (B) in subsection (f)(2)(B)--
                          (i) in the subparagraph heading, by striking 
                      ``2023'' and inserting ``2031''; and
                          (ii) by striking ``2023'' and inserting 
                      ``2031''.
            (2) Section 1240H of the Food Security Act of 1985 (16 
        U.S.C. 3839aa-8) is amended by striking ``2023'' each place it 
        appears and inserting ``2031''.
            (3) Section 1240J(a) of the Food Security Act of 1985 (16 
        U.S.C. 3839aa-22(a)) is amended, in the matter preceding 
        paragraph (1), by striking ``2023'' and inserting ``2031''.
            (4) Section 1240L(h)(2)(A) of the Food Security Act of 1985 
        (16 U.S.C. 3839aa-24(h)(2)(A)) is amended by striking ``2023'' 
        and inserting ``2031''.
            (5) Section 1241 of the Food Security Act of 1985 (16 U.S.C. 
        3841) is amended--
                    (A) in subsection (a)--
                          (i) in the matter preceding paragraph (1), by 
                      striking ``2023'' and inserting ``2031'';
                          (ii) in paragraph (2)(F), by striking ``2023'' 
                      and inserting ``2031''; and
                          (iii) in paragraph (3), by striking ``fiscal 
                      year 2023'' each place it appears and inserting 
                      ``each of fiscal years 2023 through 2031'';
                    (B) in subsection (b), by striking ``2023'' and 
                inserting ``2031''; and
                    (C) in subsection (h)--
                          (i) in paragraph (1)(B), in the subparagraph 
                      heading, by striking ``2023'' and inserting 
                      ``2031''; and
                          (ii) by striking ``2023'' each place it 
                      appears and inserting ``2031''.
            (6) Section 1244(n)(3)(A) of the Food Security Act of 1985 
        (16 U.S.C. 3844(n)(3)(A)) is amended by striking ``2023'' and 
        inserting ``2031''.
            (7) Section 1271D(a) of the Food Security Act of 1985 (16 
        U.S.C. 3871d(a)) is amended by striking ``2023'' and inserting 
        ``2031''.

[[Page 136 STAT. 2018]]

SEC. 21002. <<NOTE: 7 USC 6936 note.>>  CONSERVATION TECHNICAL 
                            ASSISTANCE.

    (a) Appropriations.--In addition to amounts otherwise available (and 
subject to subsection (b)), there are appropriated to the Secretary for 
fiscal year 2022, out of any money in the Treasury not otherwise 
appropriated, to remain available until September 30, 2031 (subject to 
the condition that no such funds may be disbursed after September 30, 
2031)--
            (1) $1,000,000,000 to provide conservation technical 
        assistance through the Natural Resources Conservation Service; 
        and
            (2) $300,000,000 to carry out a program to quantify carbon 
        sequestration and carbon dioxide, methane, and nitrous oxide 
        emissions, through which the Natural Resources Conservation 
        Service shall collect field-based data to assess the carbon 
        sequestration and reduction in carbon dioxide, methane, and 
        nitrous oxide emissions outcomes associated with activities 
        carried out pursuant to this section and use the data to monitor 
        and track those carbon sequestration and emissions trends 
        through the Greenhouse Gas Inventory and Assessment Program of 
        the Department of Agriculture.

    (b) Conditions.--The funds made available under this section are 
subject to the conditions that the Secretary shall not--
            (1) <<NOTE: Time periods.>>  enter into any agreement--
                    (A) that is for a term extending beyond September 
                30, 2031; or
                    (B) under which any payment could be outlaid or 
                funds disbursed after September 30, 2031;
            (2) use any other funds available to the Secretary to 
        satisfy obligations initially made under this section; or
            (3) interpret this section to authorize funds of the 
        Commodity Credit Corporation for activities under this section 
        if such funds are not expressly authorized or currently expended 
        for such purposes.

    (c) Administrative Costs.--In addition to amounts otherwise 
available, there is appropriated to the Secretary for fiscal year 2022, 
out of any money in the Treasury not otherwise appropriated, 
$100,000,000, to remain available until September 30, 2028, for 
administrative costs of the agencies and offices of the Department of 
Agriculture for costs related to implementing this section.

          Subtitle C--Rural Development and Agricultural Credit

SEC. 22001. ADDITIONAL FUNDING FOR ELECTRIC LOANS FOR RENEWABLE 
                            ENERGY.

    Section 9003 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 8103) is amended by adding at the end the following:
    ``(h) Additional Funding for Electric Loans for Renewable Energy.--
            ``(1) Appropriations.--Notwithstanding subsections (a) 
        through (e), and (g), in addition to amounts otherwise 
        available, there is appropriated to the Secretary for fiscal 
        year 2022, out of any money in the Treasury not otherwise 
        appropriated, $1,000,000,000, to remain available until 
        September 30, 2031,

[[Page 136 STAT. 2019]]

        for the cost of loans under section 317 of the Rural 
        Electrification Act of 1936 (7 U.S.C. 940g), including for 
        projects that store electricity that support the types of 
        eligible projects under that section, which shall be forgiven in 
        an amount that is not greater than 50 percent of the loan based 
        on how the borrower and the project meets the terms and 
        conditions for loan forgiveness consistent with the purposes of 
        that section established by the Secretary, except as provided in 
        paragraph (3).
            ``(2) <<NOTE: Time period.>>  Limitation.--The Secretary 
        shall not enter into any loan agreement pursuant this subsection 
        that could result in disbursements after September 30, 2031.
            ``(3) <<NOTE: Criteria. Waiver.>>  Exception.--The Secretary 
        shall establish criteria for waiving the 50 percent limitation 
        described in paragraph (1).''.
SEC. 22002. RURAL ENERGY FOR AMERICA PROGRAM.

    (a) Appropriation.--In addition to amounts otherwise available, 
there is appropriated to the Secretary, out of any money in the Treasury 
not otherwise appropriated, for eligible projects under section 9007 of 
the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8107), and 
notwithstanding section 9007(c)(3)(A) of that Act, the amount of a grant 
shall not exceed 50 percent of the cost of the activity carried out 
using the grant funds--
            (1) $820,250,000 for fiscal year 2022, to remain available 
        until September 30, 2031; and
            (2) $180,276,500 for each of fiscal years 2023 through 2027, 
        to remain available until September 30, 2031.

    (b) Underutilized Renewable Energy Technologies.--In addition to 
amounts otherwise available, there is appropriated to the Secretary, out 
of any money in the Treasury not otherwise appropriated, to provide 
grants and loans guaranteed by the Secretary (including the costs of 
such loans) under the program described in subsection (a) relating to 
underutilized renewable energy technologies, and to provide technical 
assistance for applying to the program described in subsection (a), 
including for underutilized renewable energy technologies, 
notwithstanding section 9007(c)(3)(A) of the Farm Security and Rural 
Investment Act of 2002 (7 U.S.C. 8107(c)(3)(A)), the amount of a grant 
shall not exceed 50 percent of the cost of the activity carried out 
using the grant funds, and to the extent the following amounts remain 
available at the end of each fiscal year, the Secretary shall use such 
amounts in accordance with subsection (a)--
            (1) $144,750,000 for fiscal year 2022, to remain available 
        until September 30, 2031; and
            (2) $31,813,500 for each of fiscal years 2023 through 2027, 
        to remain available until September 30, 2031.

    (c) <<NOTE: Time period.>>  Limitation.--The Secretary shall not 
enter into, pursuant to this section--
            (1) any loan agreement that may result in a disbursement 
        after September 30, 2031; or
            (2) any grant agreement that may result in any outlay after 
        September 30, 2031.

[[Page 136 STAT. 2020]]

SEC. 22003. BIOFUEL INFRASTRUCTURE AND AGRICULTURE PRODUCT MARKET 
                            EXPANSION.

    Section 9003 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 8103) (as amended by section 22001) is amended by adding at 
the end the following:
    ``(i) Biofuel Infrastructure and Agriculture Product Market 
Expansion.--
            ``(1) Appropriation.--Notwithstanding subsections (a) 
        through (e) and subsection (g), in addition to amounts otherwise 
        available, there is appropriated to the Secretary for fiscal 
        year 2022, out of any money in the Treasury not otherwise 
        appropriated, $500,000,000, to remain available until September 
        30, 2031, to carry out this subsection.
            ``(2) <<NOTE: Grants.>>  Use of funds.--The Secretary shall 
        use the amounts made available by paragraph (1) to provide 
        grants, for which the Federal share shall be not more than 75 
        percent of the total cost of carrying out a project for which 
        the grant is provided, on a competitive basis, to increase the 
        sale and use of agricultural commodity-based fuels through 
        infrastructure improvements for blending, storing, supplying, or 
        distributing biofuels, except for transportation infrastructure 
        not on location where such biofuels are blended, stored, 
        supplied, or distributed--
                    ``(A) <<NOTE: Determination.>>  by installing, 
                retrofitting, or otherwise upgrading fuel dispensers or 
                pumps and related equipment, storage tank system 
                components, and other infrastructure required at a 
                location related to dispensing certain biofuel blends to 
                ensure the increased sales of fuels with high levels of 
                commodity-based ethanol and biodiesel that are at or 
                greater than the levels required in the Notice of 
                Funding Availability for the Higher Blends 
                Infrastructure Incentive Program for Fiscal Year 2020, 
                published in the Federal Register (85 Fed. Reg. 26656), 
                as determined by the Secretary; and
                    ``(B) by building and retrofitting home heating oil 
                distribution centers or equivalent entities and 
                distribution systems for ethanol and biodiesel 
                blends.''.
SEC. 22004. USDA ASSISTANCE FOR RURAL ELECTRIC COOPERATIVES.

    Section 9003 of the Farm Security and Rural Investment Act of 2002 
(7 U.S.C. 8103) (as amended by section 22003) is amended by adding at 
the end the following:
    ``(j) USDA Assistance for Rural Electric Cooperatives.--
            ``(1) Appropriation.--Notwithstanding subsections (a) 
        through (e) and (g), in addition to amounts otherwise available, 
        there is appropriated to the Secretary for fiscal year 2022, out 
        of any money in the Treasury not otherwise appropriated, 
        $9,700,000,000, to remain available until September 30, 2031, 
        for the long-term resiliency, reliability, and affordability of 
        rural electric systems by providing to an eligible entity 
        (defined as an electric cooperative described in section 
        501(c)(12) or 1381(a)(2) of the Internal Revenue Code of 1986 
        and is or has been a Rural Utilities Service electric loan 
        borrower pursuant to the Rural Electrification Act of 1936 or 
        serving a predominantly rural area or a wholly or jointly owned 
        subsidiary of such electric cooperative) loans, modifications of 
        loans,

[[Page 136 STAT. 2021]]

        the cost of loans and modifications, and other financial 
        assistance to achieve the greatest reduction in carbon dioxide, 
        methane, and nitrous oxide emissions associated with rural 
        electric systems through the purchase of renewable energy, 
        renewable energy systems, zero-emission systems, and carbon 
        capture and storage systems, to deploy such systems, or to make 
        energy efficiency improvements to electric generation and 
        transmission systems of the eligible entity after the date of 
        enactment of this subsection.
            ``(2) Limitation.--No eligible entity may receive an amount 
        equal to more than 10 percent of the total amount made available 
        by this subsection.
            ``(3) Requirement.--The amount of a grant under this 
        subsection shall be not more than 25 percent of the total 
        project costs of the eligible entity carrying out a project 
        using a grant under this subsection.
            ``(4) Prohibition.--Nothing in this subsection shall be 
        interpreted to authorize funds of the Commodity Credit 
        Corporation for activities under this subsection if such funds 
        are not expressly authorized or currently expended for such 
        purposes.
            ``(5) <<NOTE: Time period.>>  Disbursements.--The Secretary 
        shall not enter into, pursuant to this subsection--
                    ``(A) any loan agreement that may result in a 
                disbursement after September 30, 2031; or
                    ``(B) any grant agreement that may result in any 
                outlay after September 30, 2031.''.
SEC. 22005. ADDITIONAL USDA RURAL DEVELOPMENT ADMINISTRATIVE 
                            FUNDS.

    In addition to amounts otherwise available, there is appropriated to 
the Secretary for fiscal year 2022, out of any money in the Treasury not 
otherwise appropriated, $100,000,000, to remain available until 
September 30, 2031, for administrative costs and salaries and expenses 
for the Rural Development mission area and administrative costs of the 
agencies and offices of the Department for costs related to implementing 
this subtitle.
SEC. 22006. FARM LOAN IMMEDIATE RELIEF FOR BORROWERS WITH AT-RISK 
                            AGRICULTURAL OPERATIONS.

    In addition to amounts otherwise available, there is appropriated to 
the Secretary for fiscal year 2022, out of amounts in the Treasury not 
otherwise appropriated, $3,100,000,000, to remain available until 
September 30, 2031, to provide payments to, for the cost of loans or 
loan modifications for, or to carry out section 331(b)(4) of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 1981(b)(4)) with 
respect to distressed borrowers of direct or guaranteed loans 
administered by the Farm Service Agency under subtitle A, B, or C of 
that Act (7 U.S.C. 1922 through 1970). <<NOTE: Determination.>>  In 
carrying out this section, the Secretary shall provide relief to those 
borrowers whose agricultural operations are at financial risk as 
expeditiously as possible, as determined by the Secretary.
SEC. 22007. USDA ASSISTANCE AND SUPPORT FOR UNDERSERVED FARMERS, 
                            RANCHERS, AND FORESTERS.

    Section 1006 of the American Rescue Plan Act of 2021 (7 U.S.C. 2279 
note; Public Law 117-2) is amended to read as follows:

[[Page 136 STAT. 2022]]

``SEC. 1006. USDA ASSISTANCE AND SUPPORT FOR UNDERSERVED FARMERS, 
                          RANCHERS, FORESTERS.

    ``(a) Technical and Other Assistance.--In addition to amounts 
otherwise available, there is appropriated to the Secretary of 
Agriculture for fiscal year 2022, to remain available until September 
30, 2031, out of any money in the Treasury not otherwise appropriated, 
$125,000,000 to provide outreach, mediation, financial training, 
capacity building training, cooperative development and agricultural 
credit training and support, and other technical assistance on issues 
concerning food, agriculture, agricultural credit, agricultural 
extension, rural development, or nutrition to underserved farmers, 
ranchers, or forest landowners, including veterans, limited resource 
producers, beginning farmers and ranchers, and farmers, ranchers, and 
forest landowners living in high poverty areas.
    ``(b) Land Loss Assistance.--In addition to amounts otherwise 
available, there is appropriated to the Secretary of Agriculture for 
fiscal year 2022, to remain available until September 30, 2031, out of 
any money in the Treasury not otherwise appropriated, $250,000,000 to 
provide grants and loans to eligible entities, as determined by the 
Secretary, to improve land access (including heirs' property and 
fractionated land issues) for underserved farmers, ranchers, and forest 
landowners, including veterans, limited resource producers, beginning 
farmers and ranchers, and farmers, ranchers, and forest landowners 
living in high poverty areas.
    ``(c) Equity Commissions.--In addition to amounts otherwise 
available, there is appropriated to the Secretary of Agriculture for 
fiscal year 2022, to remain available until September 30, 2031, out of 
any money in the Treasury not otherwise appropriated, $10,000,000 to 
fund the activities of one or more equity commissions that will address 
racial equity issues within the Department of Agriculture and the 
programs of the Department of Agriculture.
    ``(d) Research, Education, and Extension.--In addition to amounts 
otherwise available, there is appropriated to the Secretary of 
Agriculture for fiscal year 2022, to remain available until September 
30, 2031, out of any money in the Treasury not otherwise appropriated, 
$250,000,000 to support and supplement agricultural research, education, 
and extension, as well as scholarships and programs that provide 
internships and pathways to agricultural sector or Federal employment, 
for 1890 Institutions (as defined in section 2 of the Agricultural, 
Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7601)), 
1994 Institutions (as defined in section 532 of the Equity in 
Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note; Public Law 
103-382)), Alaska Native serving institutions and Native Hawaiian 
serving institutions eligible to receive grants under subsections (a) 
and (b), respectively, of section 1419B of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3156), 
Hispanic-serving institutions eligible to receive grants under section 
1455 of the National Agricultural Research, Extension, and Teaching 
Policy Act of 1977 (7 U.S.C. 3241), and the insular area institutions of 
higher education located in the territories of the United States, as 
referred to in section 1489 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3361).
    ``(e) <<NOTE: Time period.>>  Discrimination Financial Assistance.--
In addition to amounts otherwise available, there is appropriated to the 
Secretary

[[Page 136 STAT. 2023]]

of Agriculture for fiscal year 2022, to remain available until September 
30, 2031, out of any money in the Treasury not otherwise appropriated, 
$2,200,000,000 for a program to provide financial assistance, including 
the cost of any financial assistance, to farmers, ranchers, or forest 
landowners determined to have experienced discrimination prior to 
January 1, 2021, in Department of Agriculture farm lending programs, 
under which the amount of financial assistance provided to a recipient 
may be not more than $500,000, as determined to be appropriate based on 
any consequences experienced from the discrimination, which program 
shall be administered through 1 or more qualified nongovernmental 
entities selected by the Secretary subject to standards set and enforced 
by the Secretary.

    ``(f) Administrative Costs.--In addition to amounts otherwise 
available, there is appropriated to the Secretary of Agriculture for 
fiscal year 2022, to remain available until September 30, 2031, out of 
any money in the Treasury not otherwise appropriated, $24,000,000 for 
administrative costs, including training employees, of the agencies and 
offices of the Department of Agriculture to carry out this section.
    ``(g) Limitation.--The funds made available under this section are 
subject to the condition that the Secretary shall not--
            ``(1) <<NOTE: Time period.>>  enter into any agreement under 
        which any payment could be outlaid or funds disbursed after 
        September 30, 2031; or
            ``(2) use any other funds available to the Secretary to 
        satisfy obligations initially made under this section.''.
SEC. 22008. REPEAL OF FARM LOAN ASSISTANCE.

    Section 1005 of the American Rescue Plan Act of 2021 (7 U.S.C. 1921 
note; Public Law 117-2) is repealed.

                          Subtitle D--Forestry

SEC. 23001. NATIONAL FOREST SYSTEM RESTORATION AND FUELS REDUCTION 
                            PROJECTS.

    (a) Appropriations.--In addition to amounts otherwise available, 
there are appropriated to the Secretary for fiscal year 2022, out of any 
money in the Treasury not otherwise appropriated, to remain available 
until September 30, 2031--
            (1) $1,800,000,000 for hazardous fuels reduction projects on 
        National Forest System land within the wildland-urban interface;
            (2) $200,000,000 for vegetation management projects on 
        National Forest System land carried out in accordance with a 
        plan developed under section 303(d)(1) or 304(a)(3) of the 
        Healthy Forests Restoration Act of 2003 (16 U.S.C. 6542(d)(1) or 
        6543(a)(3));
            (3) $100,000,000 to provide for environmental reviews by the 
        Chief of the Forest Service in satisfying the obligations of the 
        Chief of the Forest Service under the National Environmental 
        Policy Act of 1969 (42 U.S.C. 4321 through 4370m-12); and
            (4) $50,000,000 for the protection of old-growth forests on 
        National Forest System land and to complete an inventory of old-
        growth forests and mature forests within the National Forest 
        System.

[[Page 136 STAT. 2024]]

    (b) Restrictions.--None of the funds made available by paragraph (1) 
or (2) of subsection (a) may be used for any activity--
            (1) conducted in a wilderness area or wilderness study area;
            (2) that includes the construction of a permanent road or 
        motorized trail;
            (3) <<NOTE: Deadline.>>  that includes the construction of a 
        temporary road, except in the case of a temporary road that is 
        decommissioned by the Secretary not later than 3 years after the 
        earlier of--
                    (A) the date on which the temporary road is no 
                longer needed; and
                    (B) the date on which the project for which the 
                temporary road was constructed is completed;
            (4) inconsistent with the applicable land management plan;
            (5) inconsistent with the prohibitions of the rule of the 
        Forest Service entitled ``Special Areas; Roadless Area 
        Conservation'' (66 Fed. Reg. 3244 (January 12, 2001)), as 
        modified by subparts C and D of part 294 of title 36, Code of 
        Federal Regulations; or
            (6) carried out on any land that is not National Forest 
        System land, including other forested land on Federal, State, 
        Tribal, or private land.

    (c) Limitations.--Nothing in this section shall be interpreted to 
authorize funds of the Commodity Credit Corporation for activities under 
this section if such funds are not expressly authorized or currently 
expended for such purposes.
    (d) Cost-sharing Waiver.--
            (1) In general.--The non-Federal cost-share requirement of a 
        project described in paragraph (2) may be waived at the 
        discretion of the Secretary.
            (2) Project described.--A project referred to in paragraph 
        (1) is a project that--
                    (A) is carried out using funds made available under 
                this section;
                    (B) <<NOTE: Requirement. Contracts.>>  requires a 
                partnership agreement, including a cooperative agreement 
                or mutual interest agreement; and
                    (C) is subject to a non-Federal cost-share 
                requirement.

    (e) Definitions.--In this section:
            (1) Decommission.--The term ``decommission'' means, with 
        respect to a road--
                    (A) reestablishing native vegetation on the road;
                    (B) restoring any natural drainage, watershed 
                function, or other ecological processes that were 
                disrupted or adversely impacted by the road by removing 
                or hydrologically disconnecting the road prism and 
                reestablishing stable slope contours; and
                    (C) effectively blocking the road to vehicular 
                traffic, where feasible.
            (2) Ecological integrity.--The term ``ecological integrity'' 
        has the meaning given the term in section 219.19 of title 36, 
        Code of Federal Regulations (as in effect on the date of 
        enactment of this Act).
            (3) Hazardous fuels reduction project.--The term ``hazardous 
        fuels reduction project'' means an activity, including the use 
        of prescribed fire, to protect structures and communities from 
        wildfire that is carried out on National Forest System land.

[[Page 136 STAT. 2025]]

            (4) Restoration.--The term ``restoration'' has the meaning 
        given the term in section 219.19 of title 36, Code of Federal 
        Regulations (as in effect on the date of enactment of this Act).
            (5) Vegetation management project.--The term ``vegetation 
        management project'' means an activity carried out on National 
        Forest System land to enhance the ecological integrity and 
        achieve the restoration of a forest ecosystem through the 
        removal of vegetation, the use of prescribed fire, the 
        restoration of aquatic habitat, or the decommissioning of an 
        unauthorized, temporary, or system road.
            (6) Wildland-urban interface.--The term ``wildland-urban 
        interface'' has the meaning given the term in section 101 of the 
        Healthy Forests Restoration Act of 2003 (16 U.S.C. 6511).
SEC. 23002. COMPETITIVE GRANTS FOR NON-FEDERAL FOREST LANDOWNERS.

    (a) Appropriations.--In addition to amounts otherwise available, 
there are appropriated to the Secretary for fiscal year 2022, out of any 
money in the Treasury not otherwise appropriated, to remain available 
until September 30, 2031--
            (1) $150,000,000 for the competitive grant program under 
        section 13A of the Cooperative Forestry Assistance Act of 1978 
        (16 U.S.C. 2109a) for providing through that program a cost 
        share to carry out climate mitigation or forest resilience 
        practices in the case of underserved forest landowners, subject 
        to the condition that subsection (h) of that section shall not 
        apply;
            (2) $150,000,000 for the competitive grant program under 
        section 13A of the Cooperative Forestry Assistance Act of 1978 
        (16 U.S.C. 2109a) for providing through that program grants to 
        support the participation of underserved forest landowners in 
        emerging private markets for climate mitigation or forest 
        resilience, subject to the condition that subsection (h) of that 
        section shall not apply;
            (3) $100,000,000 for the competitive grant program under 
        section 13A of the Cooperative Forestry Assistance Act of 1978 
        (16 U.S.C. 2109a) for providing through that program grants to 
        support the participation of forest landowners who own less than 
        2,500 acres of forest land in emerging private markets for 
        climate mitigation or forest resilience, subject to the 
        condition that subsection (h) of that section shall not apply;
            (4) $50,000,000 for the competitive grant program under 
        section 13A of the Cooperative Forestry Assistance Act of 1978 
        (16 U.S.C. 2109a) to provide grants to states and other eligible 
        entities to provide payments to owners of private forest land 
        for implementation of forestry practices on private forest land, 
        that are determined by the Secretary, based on the best 
        available science, to provide measurable increases in carbon 
        sequestration and storage beyond customary practices on 
        comparable land, subject to the conditions that--
                    (A) those payments shall not preclude landowners 
                from participation in other public and private sector 
                financial incentive programs; and
                    (B) subsection (h) of that section shall not apply; 
                and

[[Page 136 STAT. 2026]]

            (5) $100,000,000 to provide grants under the wood innovation 
        grant program under section 8643 of the Agriculture Improvement 
        Act of 2018 (7 U.S.C. 7655d), including for the construction of 
        new facilities that advance the purposes of the program and for 
        the hauling of material removed to reduce hazardous fuels to 
        locations where that material can be utilized, subject to the 
        conditions that--
                    (A) the amount of such a grant shall be not more 
                than $5,000,000; and
                    (B) notwithstanding subsection (d) of that section, 
                a recipient of such a grant shall provide funds equal to 
                not less than 50 percent of the amount received under 
                the grant, to be derived from non-Federal sources.

    (b) <<NOTE: Waiver. Contracts.>>  Cost-sharing Requirement.--Any 
partnership agreements, including cooperative agreements and mutual 
interest agreements, using funds made available under this section shall 
be subject to a non-Federal cost-share requirement of not less than 20 
percent of the project cost, which may be waived at the discretion of 
the Secretary.

    (c) Limitations.--Nothing in this section shall be interpreted to 
authorize funds of the Commodity Credit Corporation for activities under 
this section if such funds are not expressly authorized or currently 
expended for such purposes.
SEC. 23003. STATE AND PRIVATE FORESTRY CONSERVATION PROGRAMS.

    (a) Appropriations.--In addition to amounts otherwise available, 
there are appropriated to the Secretary for fiscal year 2022, out of any 
money in the Treasury not otherwise appropriated, to remain available 
until September 30, 2031--
            (1) $700,000,000 to provide competitive grants to States 
        through the Forest Legacy Program established under section 7 of 
        the Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 
        2103c) for projects for the acquisition of land and interests in 
        land; and
            (2) $1,500,000,000 to provide multiyear, programmatic, 
        competitive grants to a State agency, a local governmental 
        entity, an agency or governmental entity of the District of 
        Columbia, an agency or governmental entity of an insular area 
        (as defined in section 1404 of the National Agricultural 
        Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
        3103)), an Indian Tribe, or a nonprofit organization through the 
        Urban and Community Forestry Assistance program established 
        under section 9(c) of the Cooperative Forestry Assistance Act of 
        1978 (16 U.S.C. 2105(c)) for tree planting and related 
        activities.

    (b) Waiver.--Any non-Federal cost-share requirement otherwise 
applicable to projects carried out under this section may be waived at 
the discretion of the Secretary.
SEC. 23004. LIMITATION.

    The funds made available under this subtitle are subject to the 
condition that the Secretary shall not--
            (1) <<NOTE: Time periods.>>  enter into any agreement--
                    (A) that is for a term extending beyond September 
                30, 2031; or
                    (B) under which any payment could be outlaid or 
                funds disbursed after September 30, 2031; or

[[Page 136 STAT. 2027]]

            (2) use any other funds available to the Secretary to 
        satisfy obligations initially made under this subtitle.
SEC. 23005. ADMINISTRATIVE COSTS.

    In addition to amounts otherwise available, there is appropriated to 
the Secretary for fiscal year 2022, out of any money in the Treasury not 
otherwise appropriated, $100,000,000 to remain available until September 
30, 2031, for administrative costs of the agencies and offices of the 
Department of Agriculture for costs related to implementing this 
subtitle.

       TITLE III--COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS

SEC. 30001. ENHANCED USE OF DEFENSE PRODUCTION ACT OF 1950.

    In addition to amounts otherwise available, there is appropriated 
for fiscal year 2022, out of any money in the Treasury not otherwise 
appropriated, $500,000,000, to remain available until September 30, 
2024, to carry out the Defense Production Act of 1950 (50 U.S.C. 4501 et 
seq.).
SEC. 30002. IMPROVING ENERGY EFFICIENCY OR WATER EFFICIENCY OR 
                            CLIMATE RESILIENCE OF AFFORDABLE 
                            HOUSING.

    (a) Appropriation.--In addition to amounts otherwise available, 
there is appropriated to the Secretary of Housing and Urban Development 
(in this section referred to as the ``Secretary'') for fiscal year 2022, 
out of any money in the Treasury not otherwise appropriated--
            (1) $837,500,000, to remain available until September 30, 
        2028, for the cost of providing direct loans, the costs of 
        modifying such loans, and for grants, as provided for and 
        subject to terms and conditions in subsection (b), including to 
        subsidize gross obligations for the principal amount of such 
        loans, not to exceed $4,000,000,000, to fund projects that 
        improve energy or water efficiency, enhance indoor air quality 
        or sustainability, implement the use of zero-emission 
        electricity generation, low-emission building materials or 
        processes, energy storage, or building electrification 
        strategies, or address climate resilience, of an eligible 
        property;
            (2) $60,000,000, to remain available until September 30, 
        2030, for the costs to the Secretary for information technology, 
        research and evaluation, and administering and overseeing the 
        implementation of this section;
            (3) $60,000,000, to remain available until September 30, 
        2029, for expenses of contracts or cooperative agreements 
        administered by the Secretary; and
            (4) $42,500,000, to remain available until September 30, 
        2028, for energy and water benchmarking of properties eligible 
        to receive grants or loans under this section, regardless of 
        whether they actually received such grants or loans, along with 
        associated data analysis and evaluation at the property and 
        portfolio level, and the development of information technology 
        systems necessary for the collection, evaluation, and analysis 
        of such data.

    (b) Loan and Grant Terms and Conditions.--Amounts made available 
under this section shall be for direct loans, grants, and

[[Page 136 STAT. 2028]]

direct loans that can be converted to grants to eligible recipients that 
agree to an extended period of affordability for the property.
    (c) Definitions.--As used in this section--
            (1) the term ``eligible recipient'' means any owner or 
        sponsor of an eligible property; and
            (2) the term ``eligible property'' means a property assisted 
        pursuant to--
                    (A) section 202 of the Housing Act of 1959 (12 
                U.S.C. 1701q);
                    (B) section 202 of the Housing Act of 1959 (former 
                12 U.S.C. 1701q), as such section existed before the 
                enactment of the Cranston-Gonzalez National Affordable 
                Housing Act;
                    (C) section 811 of the Cranston-Gonzalez National 
                Affordable Housing Act (42 U.S.C. 8013);
                    (D) section 8(b) of the United States Housing Act of 
                1937 (42 U.S.C. 1437f(b));
                    (E) section 236 of the National Housing Act (12 
                U.S.C. 1715z-1); or
                    (F) a Housing Assistance Payments contract for 
                Project-Based Rental Assistance in fiscal year 2021.

    (d) Waiver.--The Secretary may waive or specify alternative 
requirements for any provision of subsection (c) or (bb) of section 8 of 
the United States Housing Act of 1937 (42 U.S.C. 1437f(c), 1437f(bb)) 
upon a finding that the waiver or alternative requirement is necessary 
to facilitate the use of amounts made available under this section.
    (e) <<NOTE: Notice. Requirements. Determination. Effective date.>>  
Implementation.--The Secretary shall have the authority to establish by 
notice any requirements that the Secretary determines are necessary for 
timely and effective implementation of the program and expenditure of 
funds appropriated, which requirements shall take effect upon issuance.

      TITLE IV--COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

SEC. 40001. INVESTING IN COASTAL COMMUNITIES AND CLIMATE 
                            RESILIENCE.

    (a) In General.--In addition to amounts otherwise available, there 
is appropriated to the National Oceanic and Atmospheric Administration 
for fiscal year 2022, out of any money in the Treasury not otherwise 
appropriated, $2,600,000,000, to remain available until September 30, 
2026, to provide funding through direct expenditure, contracts, grants, 
cooperative agreements, or technical assistance to coastal states (as 
defined in paragraph (4) of section 304 of the Coastal Zone Management 
Act of 1972 (16 U.S.C. 1453(4))), the District of Columbia, Tribal 
Governments, nonprofit organizations, local governments, and 
institutions of higher education (as defined in subsection (a) of 
section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001(a))), 
for the conservation, restoration, and protection of coastal and marine 
habitats, resources, Pacific salmon and other marine fisheries, to 
enable coastal communities to prepare for extreme storms and other 
changing climate conditions, and for projects that support natural 
resources that sustain coastal and marine resource dependent

[[Page 136 STAT. 2029]]

communities, marine fishery and marine mammal stock assessments, and for 
related administrative expenses.
    (b) Tribal Government Defined.--In this section, the term ``Tribal 
Government'' means the recognized governing body of any Indian or Alaska 
Native tribe, band, nation, pueblo, village, community, component band, 
or component reservation, individually identified (including 
parenthetically) in the list published most recently as of the date of 
enactment of this subsection pursuant to section 104 of the Federally 
Recognized Indian Tribe List Act of 1994 (25 U.S.C. 5131).
SEC. 40002. FACILITIES OF THE NATIONAL OCEANIC AND ATMOSPHERIC 
                            ADMINISTRATION AND NATIONAL MARINE 
                            SANCTUARIES.

    (a) National Oceanic and Atmospheric Administration Facilities.--In 
addition to amounts otherwise available, there is appropriated to the 
National Oceanic and Atmospheric Administration for fiscal year 2022, 
out of any money in the Treasury not otherwise appropriated, 
$150,000,000, to remain available until September 30, 2026, for the 
construction of new facilities, facilities in need of replacement, 
piers, marine operations facilities, and fisheries laboratories.
    (b) National Marine Sanctuaries Facilities.--In addition to amounts 
otherwise available, there is appropriated to the National Oceanic and 
Atmospheric Administration for fiscal year 2022, out of any money in the 
Treasury not otherwise appropriated, $50,000,000, to remain available 
until September 30, 2026, for the construction of facilities to support 
the National Marine Sanctuary System established under subsection (c) of 
section 301 of the National Marine Sanctuaries Act (16 U.S.C. 1431(c)).
SEC. 40003. NOAA EFFICIENT AND EFFECTIVE REVIEWS.

     In addition to amounts otherwise available, there is appropriated 
to the National Oceanic and Atmospheric Administration for fiscal year 
2022, out of any money in the Treasury not otherwise appropriated, 
$20,000,000, to remain available until September 30, 2026, to conduct 
more efficient, accurate, and timely reviews for planning, permitting 
and approval processes through the hiring and training of personnel, and 
the purchase of technical and scientific services and new equipment, and 
to improve agency transparency, accountability, and public engagement.
SEC. 40004. OCEANIC AND ATMOSPHERIC RESEARCH AND FORECASTING FOR 
                            WEATHER AND CLIMATE.

    (a) Forecasting and Research.--In addition to amounts otherwise 
available, there is appropriated to the National Oceanic and Atmospheric 
Administration for fiscal year 2022, out of any money in the Treasury 
not otherwise appropriated, $150,000,000, to remain available until 
September 30, 2026, to accelerate advances and improvements in research, 
observation systems, modeling, forecasting, assessments, and 
dissemination of information to the public as it pertains to ocean and 
atmospheric processes related to weather, coasts, oceans, and climate, 
and to carry out section 102(a) of the Weather Research and Forecasting 
Innovation Act of 2017 (15 U.S.C. 8512(a)), and for related 
administrative expenses.
    (b) Research Grants and Science Information, Products, and 
Services.--In addition to amounts otherwise available, there

[[Page 136 STAT. 2030]]

are appropriated to the National Oceanic and Atmospheric Administration 
for fiscal year 2022, out of any money in the Treasury not otherwise 
appropriated, to remain available until September 30, 2026, $50,000,000 
for competitive grants to fund climate research as it relates to 
weather, ocean, coastal, and atmospheric processes and conditions, and 
impacts to marine species and coastal habitat, and for related 
administrative expenses.
SEC. 40005. COMPUTING CAPACITY AND RESEARCH FOR WEATHER, OCEANS, 
                            AND CLIMATE.

     In addition to amounts otherwise available, there is appropriated 
to the National Oceanic and Atmospheric Administration for fiscal year 
2022, out of any money in the Treasury not otherwise appropriated, 
$190,000,000, to remain available until September 30, 2026, for the 
procurement of additional high-performance computing, data processing 
capacity, data management, and storage assets, to carry out section 
204(a)(2) of the High-Performance Computing Act of 1991 (15 U.S.C. 
5524(a)(2)), and for transaction agreements authorized under section 
301(d)(1)(A) of the Weather Research and Forecasting Innovation Act of 
2017 (15 U.S.C. 8531(d)(1)(A)), and for related administrative expenses.
SEC. 40006. ACQUISITION OF HURRICANE FORECASTING AIRCRAFT.

    In addition to amounts otherwise available, there is appropriated to 
the National Oceanic and Atmospheric Administration for fiscal year 
2022, out of any money in the Treasury not otherwise appropriated, 
$100,000,000, to remain available until September 30, 2026, for the 
acquisition of hurricane hunter aircraft under section 413(a) of the 
Weather Research and Forecasting Innovation Act of 2017 (15 U.S.C. 
8549(a)).
SEC. 40007. <<NOTE: 49 USC 44504 note.>>  ALTERNATIVE FUEL AND 
                            LOW-EMISSION AVIATION TECHNOLOGY 
                            PROGRAM.

    (a) Appropriation and Establishment.--For purposes of establishing a 
competitive grant program for eligible entities to carry out projects 
located in the United States that produce, transport, blend, or store 
sustainable aviation fuel, or develop, demonstrate, or apply low-
emission aviation technologies, in addition to amounts otherwise 
available, there are appropriated to the Secretary for fiscal year 2022, 
out of any money in the Treasury not otherwise appropriated, to remain 
available until September 30, 2026--
            (1) $244,530,000 for projects relating to the production, 
        transportation, blending, or storage of sustainable aviation 
        fuel;
            (2) $46,530,000 for projects relating to low-emission 
        aviation technologies; and
            (3) $5,940,000 to fund the award of grants under this 
        section, and oversight of the program, by the Secretary.

    (b) Considerations.--In carrying out subsection (a), the Secretary 
shall consider, with respect to a proposed project--
            (1) the capacity for the eligible entity to increase the 
        domestic production and deployment of sustainable aviation fuel 
        or the use of low-emission aviation technologies among the 
        United States commercial aviation and aerospace industry;
            (2) the projected greenhouse gas emissions from such 
        project, including emissions resulting from the development of 
        the project, and the potential the project has to reduce

[[Page 136 STAT. 2031]]

        or displace, on a lifecycle basis, United States greenhouse gas 
        emissions associated with air travel;
            (3) the capacity to create new jobs and develop supply chain 
        partnerships in the United States;
            (4) for projects related to the production of sustainable 
        aviation fuel, the projected lifecycle greenhouse gas emissions 
        benefits from the proposed project, which shall include 
        feedstock and fuel production and potential direct and indirect 
        greenhouse gas emissions (including resulting from changes in 
        land use); and
            (5) the benefits of ensuring a diversity of feedstocks for 
        sustainable aviation fuel, including the use of waste carbon 
        oxides and direct air capture.

    (c) Cost Share.--The Federal share of the cost of a project carried 
out using grant funds under subsection (a) shall be 75 percent of the 
total proposed cost of the project, except that such Federal share shall 
increase to 90 percent of the total proposed cost of the project if the 
eligible entity is a small hub airport or nonhub airport, as such terms 
are defined in section 47102 of title 49, United States Code.
    (d) <<NOTE: Deadline.>>  Fuel Emissions Reduction Test.--For 
purposes of clause (ii) of subsection (e)(7)(E), the Secretary shall, 
not later than 2 years after the date of enactment of this section, 
adopt at least 1 methodology for testing lifecycle greenhouse gas 
emissions that meets the requirements of such clause.

    (e) Definitions.--In this section:
            (1) Eligible entity.--The term ``eligible entity'' means--
                    (A) a State or local government, including the 
                District of Columbia, other than an airport sponsor;
                    (B) an air carrier;
                    (C) an airport sponsor;
                    (D) an accredited institution of higher education;
                    (E) a research institution;
                    (F) a person or entity engaged in the production, 
                transportation, blending, or storage of sustainable 
                aviation fuel in the United States or feedstocks in the 
                United States that could be used to produce sustainable 
                aviation fuel;
                    (G) a person or entity engaged in the development, 
                demonstration, or application of low-emission aviation 
                technologies; or
                    (H) nonprofit entities or nonprofit consortia with 
                experience in sustainable aviation fuels, low-emission 
                aviation technologies, or other clean transportation 
                research programs.
            (2) Feedstock.--The term ``feedstock'' means sources of 
        hydrogen and carbon not originating from unrefined or refined 
        petrochemicals.
            (3) Induced land-use change values.--The term ``induced 
        land-use change values'' means the greenhouse gas emissions 
        resulting from the conversion of land to the production of 
        feedstocks and from the conversion of other land due to the 
        displacement of crops or animals for which the original land was 
        previously used.
            (4) Lifecycle greenhouse gas emissions.--The term 
        ``lifecycle greenhouse gas emissions'' means the combined 
        greenhouse gas emissions from feedstock production, collection 
        of

[[Page 136 STAT. 2032]]

        feedstock, transportation of feedstock to fuel production 
        facilities, conversion of feedstock to fuel, transportation and 
        distribution of fuel, and fuel combustion in an aircraft engine, 
        as well as from induced land-use change values.
            (5) Low-emission aviation technologies.--The term ``low-
        emission aviation technologies'' means technologies, produced in 
        the United States, that significantly--
                    (A) improve aircraft fuel efficiency;
                    (B) increase utilization of sustainable aviation 
                fuel; or
                    (C) reduce greenhouse gas emissions produced during 
                operation of civil aircraft.
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of Transportation.
            (7) Sustainable aviation fuel.--The term ``sustainable 
        aviation fuel'' means liquid fuel, produced in the United 
        States, that--
                    (A) consists of synthesized hydrocarbons;
                    (B) meets the requirements of--
                          (i) ASTM International Standard D7566; or
                          (ii) the co-processing provisions of ASTM 
                      International Standard D1655, Annex A1 (or such 
                      successor standard);
                    (C) is derived from biomass (in a similar manner as 
                such term is defined in section 45K(c)(3) of the 
                Internal Revenue Code of 1986), waste streams, renewable 
                energy sources, or gaseous carbon oxides;
                    (D) is not derived from palm fatty acid distillates; 
                and
                    (E) <<NOTE: Determinations.>>  achieves at least a 
                50 percent lifecycle greenhouse gas emissions reduction 
                in comparison with petroleum-based jet fuel, as 
                determined by a test that shows--
                          (i) the fuel production pathway achieves at 
                      least a 50 percent reduction of the aggregate 
                      attributional core lifecycle emissions and the 
                      induced land-use change values under a lifecycle 
                      methodology for sustainable aviation fuels similar 
                      to that adopted by the International Civil 
                      Aviation Organization with the agreement of the 
                      United States; or
                          (ii) the fuel production pathway achieves at 
                      least a 50 percent reduction of the aggregate 
                      attributional core lifecycle greenhouse gas 
                      emissions values and the induced land-use change 
                      values under another methodology that the 
                      Secretary determines is--
                                    (I) reflective of the latest 
                                scientific understanding of lifecycle 
                                greenhouse gas emissions; and
                                    (II) as stringent as the requirement 
                                under clause (i).

[[Page 136 STAT. 2033]]

           TITLE V--COMMITTEE ON ENERGY AND NATURAL RESOURCES

                           Subtitle A--Energy

                       PART 1--GENERAL PROVISIONS

SEC. 50111. <<NOTE: 42 USC 17113b note.>>  DEFINITIONS.

    In this subtitle:
            (1) Greenhouse gas.--The term ``greenhouse gas'' has the 
        meaning given the term in section 1610(a) of the Energy Policy 
        Act of 1992 (42 U.S.C. 13389(a)).
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (3) State.--The term ``State'' means a State, the District 
        of Columbia, and a United States Insular Area (as that term is 
        defined in section 50211).
            (4) State energy office.--The term ``State energy office'' 
        has the meaning given the term in section 124(a) of the Energy 
        Policy Act of 2005 (42 U.S.C. 15821(a)).
            (5) State energy program.--The term ``State Energy Program'' 
        means the State Energy Program established pursuant to part D of 
        title III of the Energy Policy and Conservation Act (42 U.S.C. 
        6321 through 6326).

       PART 2--RESIDENTIAL EFFICIENCY AND ELECTRIFICATION REBATES

SEC. 50121. <<NOTE: 42 USC 18795.>>  HOME ENERGY PERFORMANCE-
                            BASED, WHOLE-HOUSE REBATES.

    (a) Appropriation.--
            (1) In general.--In addition to amounts otherwise available, 
        there is appropriated to the Secretary for fiscal year 2022, out 
        of any money in the Treasury not otherwise appropriated, 
        $4,300,000,000, to remain available through September 30, 2031, 
        to carry out a program to award grants to State energy offices 
        to develop and implement a HOMES rebate program.
            (2) Allocation of funds.--
                    (A) In general.--The Secretary shall reserve funds 
                made available under paragraph (1) for each State energy 
                office--
                          (i) <<NOTE: Effective date.>>  in accordance 
                      with the allocation formula for the State Energy 
                      Program in effect on January 1, 2022; and
                          (ii) to be distributed to a State energy 
                      office if the application of the State energy 
                      office under subsection (b) is approved.
                    (B) <<NOTE: Deadline.>>  Additional funds.--Not 
                earlier than 2 years after the date of enactment of this 
                Act, any money reserved under subparagraph (A) but not 
                distributed under clause (ii) of that subparagraph shall 
                be redistributed to the State energy offices operating a 
                HOMES rebate program using a grant received under this 
                section in proportion to the

[[Page 136 STAT. 2034]]

                amount distributed to those State energy offices under 
                subparagraph (A)(ii).
            (3) Administrative expenses.--Of the funds made available 
        under paragraph (1), the Secretary shall use not more than 3 
        percent for--
                    (A) administrative purposes; and
                    (B) providing technical assistance relating to 
                activities carried out under this section.

    (b) <<NOTE: Grants. Plan.>>  Application.--A State energy office 
seeking a grant under this section shall submit to the Secretary an 
application that includes a plan to implement a HOMES rebate program, 
including a plan--
            (1) <<NOTE: Procedures. Determination.>>  to use procedures, 
        as approved by the Secretary, for determining the reductions in 
        home energy use resulting from the implementation of a home 
        energy efficiency retrofit that are calibrated to historical 
        energy usage for a home consistent with BPI 2400, for purposes 
        of modeled performance home rebates;
            (2) to use open-source advanced measurement and verification 
        software, as approved by the Secretary, for determining and 
        documenting the monthly and hourly (if available) weather-
        normalized energy use of a home before and after the 
        implementation of a home energy efficiency retrofit, for 
        purposes of measured performance home rebates;
            (3) to value savings based on time, location, or greenhouse 
        gas emissions;
            (4) <<NOTE: Certification.>>  for quality monitoring to 
        ensure that each home energy efficiency retrofit for which a 
        rebate is provided is documented in a certificate that--
                    (A) is provided by the contractor and certified by a 
                third party to the homeowner; and
                    (B) details the work performed, the equipment and 
                materials installed, and the projected energy savings or 
                energy generation to support accurate valuation of the 
                retrofit;
            (5) to provide a contractor performing a home energy 
        efficiency retrofit or an aggregator who has the right to claim 
        a rebate $200 for each home located in a disadvantaged community 
        that receives a home energy efficiency retrofit for which a 
        rebate is provided under the program; and
            (6) to ensure that a homeowner or aggregator does not 
        receive a rebate for the same upgrade through both a HOMES 
        rebate program and any other Federal grant or rebate program, 
        pursuant to subsection (c)(7).

    (c) HOMES Rebate Program.--
            (1) <<NOTE: Effective date. Deadline.>>  In general.--A 
        HOMES rebate program carried out by a State energy office 
        receiving a grant pursuant to this section shall provide rebates 
        to homeowners and aggregators for whole-house energy saving 
        retrofits begun on or after the date of enactment of this Act 
        and completed by not later than September 30, 2031.
            (2) Amount of rebate.--Subject to paragraph (3), under a 
        HOMES rebate program, the amount of a rebate shall not exceed--
                    (A) for individuals and aggregators carrying out 
                energy efficiency upgrades of single-family homes--

[[Page 136 STAT. 2035]]

                          (i) in the case of a retrofit that achieves 
                      modeled energy system savings of not less than 20 
                      percent but less than 35 percent, the lesser of--
                                    (I) $2,000; and
                                    (II) 50 percent of the project cost;
                          (ii) in the case of a retrofit that achieves 
                      modeled energy system savings of not less than 35 
                      percent, the lesser of--
                                    (I) $4,000; and
                                    (II) 50 percent of the project cost; 
                                and
                          (iii) for measured energy savings, in the case 
                      of a home or portfolio of homes that achieves 
                      energy savings of not less than 15 percent--
                                    (I) a payment rate per kilowatt hour 
                                saved, or kilowatt hour-equivalent 
                                saved, equal to $2,000 for a 20 percent 
                                reduction of energy use for the average 
                                home in the State; or
                                    (II) 50 percent of the project cost;
                    (B) for multifamily building owners and aggregators 
                carrying out energy efficiency upgrades of multifamily 
                buildings--
                          (i) in the case of a retrofit that achieves 
                      modeled energy system savings of not less than 20 
                      percent but less than 35 percent, $2,000 per 
                      dwelling unit, with a maximum of $200,000 per 
                      multifamily building;
                          (ii) in the case of a retrofit that achieves 
                      modeled energy system savings of not less than 35 
                      percent, $4,000 per dwelling unit, with a maximum 
                      of $400,000 per multifamily building; or
                          (iii) for measured energy savings, in the case 
                      of a multifamily building or portfolio of 
                      multifamily buildings that achieves energy savings 
                      of not less than 15 percent--
                                    (I) a payment rate per kilowatt hour 
                                saved, or kilowatt hour-equivalent 
                                saved, equal to $2,000 for a 20 percent 
                                reduction of energy use per dwelling 
                                unit for the average multifamily 
                                building in the State; or
                                    (II) 50 percent of the project cost; 
                                and
                    (C) for individuals and aggregators carrying out 
                energy efficiency upgrades of a single-family home 
                occupied by a low- or moderate-income household or a 
                multifamily building not less than 50 percent of the 
                dwelling units of which are occupied by low- or 
                moderate-income households--
                          (i) in the case of a retrofit that achieves 
                      modeled energy system savings of not less than 20 
                      percent but less than 35 percent, the lesser of--
                                    (I) $4,000 per single-family home or 
                                dwelling unit; and
                                    (II) 80 percent of the project cost;
                          (ii) in the case of a retrofit that achieves 
                      modeled energy system savings of not less than 35 
                      percent, the lesser of--
                                    (I) $8,000 per single-family home or 
                                dwelling unit; and
                                    (II) 80 percent of the project cost; 
                                and

[[Page 136 STAT. 2036]]

                          (iii) for measured energy savings, in the case 
                      of a single-family home, multifamily building, or 
                      portfolio of single-family homes or multifamily 
                      buildings that achieves energy savings of not less 
                      than 15 percent--
                                    (I) a payment rate per kilowatt hour 
                                saved, or kilowatt hour-equivalent 
                                saved, equal to $4,000 for a 20 percent 
                                reduction of energy use per single-
                                family home or dwelling unit, as 
                                applicable, for the average single-
                                family home or multifamily building in 
                                the State; or
                                    (II) 80 percent of the project cost.
            (3) Rebates to low- or moderate-income households.--On 
        approval from the Secretary, notwithstanding paragraph (2), a 
        State energy office carrying out a HOMES rebate program using a 
        grant awarded pursuant to this section may increase rebate 
        amounts for low- or moderate-income households.
            (4) Use of funds.--A State energy office that receives a 
        grant pursuant to this section may use not more than 20 percent 
        of the grant amount for planning, administration, or technical 
        assistance related to a HOMES rebate program.
            (5) <<NOTE: Publication.>>  Data access guidelines.--The 
        Secretary shall develop and publish guidelines for States 
        relating to residential electric and natural gas energy data 
        sharing.
            (6) Exemption.--Activities carried out by a State energy 
        office using a grant awarded pursuant to this section shall not 
        be subject to the expenditure prohibitions and limitations 
        described in section 420.18 of title 10, Code of Federal 
        Regulations.
            (7) Prohibition on combining rebates.--A rebate provided by 
        a State energy office under a HOMES rebate program may not be 
        combined with any other Federal grant or rebate, including a 
        rebate provided under a high-efficiency electric home rebate 
        program (as defined in section 50122(d)), for the same single 
        upgrade.

    (d) Definitions.--In this section:
            (1) Disadvantaged community.--The term ``disadvantaged 
        community'' means a community that the Secretary determines, 
        based on appropriate data, indices, and screening tools, is 
        economically, socially, or environmentally disadvantaged.
            (2) HOMES rebate program.--The term ``HOMES rebate program'' 
        means a Home Owner Managing Energy Savings rebate program 
        established by a State energy office as part of an approved 
        State energy conservation plan under the State Energy Program.
            (3) Low- or moderate-income household.--The term ``low- or 
        moderate-income household'' means an individual or family the 
        total annual income of which is less than 80 percent of the 
        median income of the area in which the individual or family 
        resides, as reported by the Department of Housing and Urban 
        Development, including an individual or family that has 
        demonstrated eligibility for another Federal program with income 
        restrictions equal to or below 80 percent of area median income.
SEC. 50122. <<NOTE: 42 USC 18795a.>>  HIGH-EFFICIENCY ELECTRIC 
                            HOME REBATE PROGRAM.

    (a) Appropriations.--

[[Page 136 STAT. 2037]]

            (1) Funds to state energy offices and indian tribes.--In 
        addition to amounts otherwise available, there is appropriated 
        to the Secretary for fiscal year 2022, out of any money in the 
        Treasury not otherwise appropriated, to carry out a program--
                    (A) to award grants to State energy offices to 
                develop and implement a high-efficiency electric home 
                rebate program in accordance with subsection (c), 
                $4,275,000,000, to remain available through September 
                30, 2031; and
                    (B) to award grants to Indian Tribes to develop and 
                implement a high-efficiency electric home rebate program 
                in accordance with subsection (c), $225,000,000, to 
                remain available through September 30, 2031.
            (2) Allocation of funds.--
                    (A) State energy offices.--The Secretary shall 
                reserve funds made available under paragraph (1)(A) for 
                each State energy office--
                          (i) <<NOTE: Effective date.>>  in accordance 
                      with the allocation formula for the State Energy 
                      Program in effect on January 1, 2022; and
                          (ii) to be distributed to a State energy 
                      office if the application of the State energy 
                      office under subsection (b) is approved.
                    (B) Indian tribes.--The Secretary shall reserve 
                funds made available under paragraph (1)(B)--
                          (i) in a manner determined appropriate by the 
                      Secretary; and
                          (ii) to be distributed to an Indian Tribe if 
                      the application of the Indian Tribe under 
                      subsection (b) is approved.
                    (C) <<NOTE: Deadline.>>  Additional funds.--Not 
                earlier than 2 years after the date of enactment of this 
                Act, any money reserved under--
                          (i) subparagraph (A) but not distributed under 
                      clause (ii) of that subparagraph shall be 
                      redistributed to the State energy offices 
                      operating a high-efficiency electric home rebate 
                      program in proportion to the amount distributed to 
                      those State energy offices under that clause; and
                          (ii) subparagraph (B) but not distributed 
                      under clause (ii) of that subparagraph shall be 
                      redistributed to the Indian Tribes operating a 
                      high-efficiency electric home rebate program in 
                      proportion to the amount distributed to those 
                      Indian Tribes under that clause.
            (3) Administrative expenses.--Of the funds made available 
        under paragraph (1), the Secretary shall use not more than 3 
        percent for--
                    (A) administrative purposes; and
                    (B) providing technical assistance relating to 
                activities carried out under this section.

    (b) <<NOTE: Plans.>>  Application.--A State energy office or Indian 
Tribe seeking a grant under the program shall submit to the Secretary an 
application that includes a plan to implement a high-efficiency electric 
home rebate program, including--
            (1) <<NOTE: Verification.>>  a plan to verify the income 
        eligibility of eligible entities seeking a rebate for a 
        qualified electrification project;

[[Page 136 STAT. 2038]]

            (2) a plan to allow rebates for qualified electrification 
        projects at the point of sale in a manner that ensures that the 
        income eligibility of an eligible entity seeking a rebate may be 
        verified at the point of sale;
            (3) a plan to ensure that an eligible entity does not 
        receive a rebate for the same qualified electrification project 
        through both a high-efficiency electric home rebate program and 
        any other Federal grant or rebate program, pursuant to 
        subsection (c)(8); and
            (4) any additional information that the Secretary may 
        require.

    (c) High-efficiency Electric Home Rebate Program.--
            (1) <<NOTE: Grants.>>  In general.--Under the program, the 
        Secretary shall award grants to State energy offices and Indian 
        Tribes to establish a high-efficiency electric home rebate 
        program under which rebates shall be provided to eligible 
        entities for qualified electrification projects.
            (2) Guidelines.--The Secretary shall prescribe guidelines 
        for high-efficiency electric home rebate programs, including 
        guidelines for providing point of sale rebates in a manner 
        consistent with the income eligibility requirements under this 
        section.
            (3) Amount of rebate.--
                    (A) Appliance upgrades.--The amount of a rebate 
                provided under a high-efficiency electric home rebate 
                program for the purchase of an appliance under a 
                qualified electrification project shall be--
                          (i) not more than $1,750 for a heat pump water 
                      heater;
                          (ii) not more than $8,000 for a heat pump for 
                      space heating or cooling; and
                          (iii) not more than $840 for--
                                    (I) an electric stove, cooktop, 
                                range, or oven; or
                                    (II) an electric heat pump clothes 
                                dryer.
                    (B) Nonappliance upgrades.--The amount of a rebate 
                provided under a high-efficiency electric home rebate 
                program for the purchase of a nonappliance upgrade under 
                a qualified electrification project shall be--
                          (i) not more than $4,000 for an electric load 
                      service center upgrade;
                          (ii) not more than $1,600 for insulation, air 
                      sealing, and ventilation; and
                          (iii) not more than $2,500 for electric 
                      wiring.
                    (C) Maximum rebate.--An eligible entity receiving 
                multiple rebates under this section may receive not more 
                than a total of $14,000 in rebates.
            (4) Limitations.--A rebate provided using funding under this 
        section shall not exceed--
                    (A) in the case of an eligible entity described in 
                subsection (d)(1)(A)--
                          (i) 50 percent of the cost of the qualified 
                      electrification project for a household the annual 
                      income of which is not less than 80 percent and 
                      not greater than 150 percent of the area median 
                      income; and
                          (ii) 100 percent of the cost of the qualified 
                      electrification project for a household the annual 
                      income

[[Page 136 STAT. 2039]]

                      of which is less than 80 percent of the area 
                      median income;
                    (B) in the case of an eligible entity described in 
                subsection (d)(1)(B)--
                          (i) 50 percent of the cost of the qualified 
                      electrification project for a multifamily building 
                      not less than 50 percent of the residents of which 
                      are households the annual income of which is not 
                      less than 80 percent and not greater than 150 
                      percent of the area median income; and
                          (ii) 100 percent of the cost of the qualified 
                      electrification project for a multifamily building 
                      not less than 50 percent of the residents of which 
                      are households the annual income of which is less 
                      than 80 percent of the area median income; or
                    (C) in the case of an eligible entity described in 
                subsection (d)(1)(C)--
                          (i) 50 percent of the cost of the qualified 
                      electrification project for a household--
                                    (I) on behalf of which the eligible 
                                entity is working; and
                                    (II) the annual income of which is 
                                not less than 80 percent and not greater 
                                than 150 percent of the area median 
                                income; and
                          (ii) 100 percent of the cost of the qualified 
                      electrification project for a household--
                                    (I) on behalf of which the eligible 
                                entity is working; and
                                    (II) the annual income of which is 
                                less than 80 percent of the area median 
                                income.
            (5) Amount for installation of upgrades.--
                    (A) In general.--In the case of an eligible entity 
                described in subsection (d)(1)(C) that receives a rebate 
                under the program and performs the installation of the 
                applicable qualified electrification project, a State 
                energy office or Indian Tribe shall provide to that 
                eligible entity, in addition to the rebate, an amount 
                that--
                          (i) does not exceed $500; and
                          (ii) <<NOTE: Determination.>>  is commensurate 
                      with the scale of the upgrades installed as part 
                      of the qualified electrification project, as 
                      determined by the Secretary.
                    (B) Treatment.--An amount received under 
                subparagraph (A) by an eligible entity described in that 
                subparagraph shall not be subject to the requirement 
                under paragraph (6).
            (6) Requirement.--An eligible entity described in 
        subparagraph (C) of subsection (d)(1) shall discount the amount 
        of a rebate received for a qualified electrification project 
        from any amount charged by that eligible entity to the eligible 
        entity described in subparagraph (A) or (B) of that subsection 
        on behalf of which the qualified electrification project is 
        carried out.
            (7) Exemption.--Activities carried out by a State energy 
        office using a grant provided under the program shall not be 
        subject to the expenditure prohibitions and limitations 
        described in section 420.18 of title 10, Code of Federal 
        Regulations.

[[Page 136 STAT. 2040]]

            (8) Prohibition on combining rebates.--A rebate provided by 
        a State energy office or Indian Tribe under a high-efficiency 
        electric home rebate program may not be combined with any other 
        Federal grant or rebate, including a rebate provided under a 
        HOMES rebate program (as defined in section 50121(d)), for the 
        same qualified electrification project.
            (9) Administrative costs.--A State energy office or Indian 
        Tribe that receives a grant under the program shall use not more 
        than 20 percent of the grant amount for planning, 
        administration, or technical assistance relating to a high-
        efficiency electric home rebate program.

    (d) Definitions.--In this section:
            (1) Eligible entity.--The term ``eligible entity'' means--
                    (A) a low- or moderate-income household;
                    (B) an individual or entity that owns a multifamily 
                building not less than 50 percent of the residents of 
                which are low- or moderate-income households; and
                    (C) <<NOTE: Determination.>>  a governmental, 
                commercial, or nonprofit entity, as determined by the 
                Secretary, carrying out a qualified electrification 
                project on behalf of an entity described in subparagraph 
                (A) or (B).
            (2) High-efficiency electric home rebate program.--The term 
        ``high-efficiency electric home rebate program'' means a rebate 
        program carried out by a State energy office or Indian Tribe 
        pursuant to subsection (c) using a grant received under the 
        program.
            (3) Indian tribe.--The term ``Indian Tribe'' has the meaning 
        given the term in section 4 of the Indian Self-Determination and 
        Education Assistance Act (25 U.S.C. 5304).
            (4) Low- or moderate-income household.--The term ``low- or 
        moderate-income household'' means an individual or family the 
        total annual income of which is less than 150 percent of the 
        median income of the area in which the individual or family 
        resides, as reported by the Department of Housing and Urban 
        Development, including an individual or family that has 
        demonstrated eligibility for another Federal program with income 
        restrictions equal to or below 150 percent of area median 
        income.
            (5) Program.--The term ``program'' means the program carried 
        out by the Secretary under subsection (a)(1).
            (6) Qualified electrification project.--
                    (A) In general.--The term ``qualified 
                electrification project'' means a project that--
                          (i) includes the purchase and installation 
                      of--
                                    (I) an electric heat pump water 
                                heater;
                                    (II) an electric heat pump for space 
                                heating and cooling;
                                    (III) an electric stove, cooktop, 
                                range, or oven;
                                    (IV) an electric heat pump clothes 
                                dryer;
                                    (V) an electric load service center;
                                    (VI) insulation;
                                    (VII) air sealing and materials to 
                                improve ventilation; or
                                    (VIII) electric wiring;
                          (ii) with respect to any appliance described 
                      in clause (i), the purchase of which is carried 
                      out--
                                    (I) as part of new construction;

[[Page 136 STAT. 2041]]

                                    (II) to replace a nonelectric 
                                appliance; or
                                    (III) as a first-time purchase with 
                                respect to that appliance; and
                          (iii) is carried out at, or relating to, a 
                      single-family home or multifamily building, as 
                      applicable and defined by the Secretary.
                    (B) Exclusions.--The term ``qualified 
                electrification project'' does not include any project 
                with respect to which the appliance, system, equipment, 
                infrastructure, component, or other item described in 
                subclauses (I) through (VIII) of subparagraph (A)(i) is 
                not certified under the Energy Star program established 
                by section 324A of the Energy Policy and Conservation 
                Act (42 U.S.C. 6294a), if applicable.
SEC. 50123. <<NOTE: 42 USC 18795b.>>  STATE-BASED HOME ENERGY 
                            EFFICIENCY CONTRACTOR TRAINING GRANTS.

    (a) Appropriation.--In addition to amounts otherwise available, 
there is appropriated to the Secretary for fiscal year 2022, out of any 
money in the Treasury not otherwise appropriated, $200,000,000, to 
remain available through September 30, 2031, to carry out a program to 
provide financial assistance to States to develop and implement a State 
program described in section 362(d)(13) of the Energy Policy and 
Conservation Act (42 U.S.C. 6322(d)(13)), which shall provide training 
and education to contractors involved in the installation of home energy 
efficiency and electrification improvements, including improvements 
eligible for rebates under a HOMES rebate program (as defined in section 
50121(d)) or a high-efficiency electric home rebate program (as defined 
in section 50122(d)), as part of an approved State energy conservation 
plan under the State Energy Program.
    (b) Use of Funds.--A State may use amounts received under subsection 
(a)--
            (1) to reduce the cost of training contractor employees;
            (2) to provide testing and certification of contractors 
        trained and educated under a State program developed and 
        implemented pursuant to subsection (a); and
            (3) to partner with nonprofit organizations to develop and 
        implement a State program pursuant to subsection (a).

    (c) Administrative Expenses.--Of the amounts received by a State 
under subsection (a), a State shall use not more than 10 percent for 
administrative expenses associated with developing and implementing a 
State program pursuant to that subsection.

               PART 3--BUILDING EFFICIENCY AND RESILIENCE

SEC. 50131. ASSISTANCE FOR LATEST AND ZERO BUILDING ENERGY CODE 
                            ADOPTION.

    (a) Appropriation.--In addition to amounts otherwise available, 
there is appropriated to the Secretary for fiscal year 2022, out of any 
money in the Treasury not otherwise appropriated--
            (1) $330,000,000, to remain available through September 30, 
        2029, to carry out activities under part D of title III of the 
        Energy Policy and Conservation Act (42 U.S.C. 6321 through 6326) 
        in accordance with subsection (b); and

[[Page 136 STAT. 2042]]

            (2) $670,000,000, to remain available through September 30, 
        2029, to carry out activities under part D of title III of the 
        Energy Policy and Conservation Act (42 U.S.C. 6321 through 6326) 
        in accordance with subsection (c).

    (b) <<NOTE: Grants.>>  Latest Building Energy Code.--The Secretary 
shall use funds made available under subsection (a)(1) for grants to 
assist States, and units of local government that have authority to 
adopt building codes--
            (1) to adopt--
                    (A) a building energy code (or codes) for 
                residential buildings that meets or exceeds the 2021 
                International Energy Conservation Code, or achieves 
                equivalent or greater energy savings;
                    (B) a building energy code (or codes) for commercial 
                buildings that meets or exceeds the ANSI/ASHRAE/IES 
                Standard 90.1-2019, or achieves equivalent or greater 
                energy savings; or
                    (C) any combination of building energy codes 
                described in subparagraph (A) or (B); and
            (2) <<NOTE: Plan.>>  to implement a plan for the 
        jurisdiction to achieve full compliance with any building energy 
        code adopted under paragraph (1) in new and renovated 
        residential or commercial buildings, as applicable, which plan 
        shall include active training and enforcement programs and 
        measurement of the rate of compliance each year.

    (c) <<NOTE: Grants.>>  Zero Energy Code.--The Secretary shall use 
funds made available under subsection (a)(2) for grants to assist 
States, and units of local government that have authority to adopt 
building codes--
            (1) to adopt a building energy code (or codes) for 
        residential and commercial buildings that meets or exceeds the 
        zero energy provisions in the 2021 International Energy 
        Conservation Code or an equivalent stretch code; and
            (2) <<NOTE: Plan.>>  to implement a plan for the 
        jurisdiction to achieve full compliance with any building energy 
        code adopted under paragraph (1) in new and renovated 
        residential and commercial buildings, which plan shall include 
        active training and enforcement programs and measurement of the 
        rate of compliance each year.

    (d) State Match.--The State cost share requirement under the item 
relating to ``Department of Energy--Energy Conservation'' in title II of 
the Department of the Interior and Related Agencies Appropriations Act, 
1985 (42 U.S.C. 6323a; 98 Stat. 1861), shall not apply to assistance 
provided under this section.
    (e) Administrative Costs.--Of the amounts made available under this 
section, the Secretary shall reserve not more than 5 percent for 
administrative costs necessary to carry out this section.

                   PART 4--DOE LOAN AND GRANT PROGRAMS

SEC. 50141. FUNDING FOR DEPARTMENT OF ENERGY LOAN PROGRAMS OFFICE.

    (a) Commitment Authority.--In addition to commitment authority 
otherwise available and previously provided, the Secretary may make 
commitments to guarantee loans for eligible projects under section 1703 
of the Energy Policy Act of 2005 (42 U.S.C.

[[Page 136 STAT. 2043]]

16513), up to a total principal amount of $40,000,000,000, to remain 
available through September 30, 2026.
    (b) Appropriation.--In addition to amounts otherwise available and 
previously provided, there is appropriated to the Secretary for fiscal 
year 2022, out of any money in the Treasury not otherwise appropriated, 
$3,600,000,000, to remain available through September 30, 2026, for the 
costs of guarantees made under section 1703 of the Energy Policy Act of 
2005 (42 U.S.C. 16513), using the loan guarantee authority provided 
under subsection (a) of this section.
    (c) Administrative Expenses.--Of the amount made available under 
subsection (b), the Secretary shall reserve not more than 3 percent for 
administrative expenses to carry out title XVII of the Energy Policy Act 
of 2005 and for carrying out section 1702(h)(3) of such Act (42 U.S.C. 
16512(h)(3)).
    (d) Limitations.--
            (1) <<NOTE: President. Compliance.>>  Certification.--None 
        of the amounts made available under this section for loan 
        guarantees shall be available for any project unless the 
        President has certified in advance in writing that the loan 
        guarantee and the project comply with the provisions under this 
        section.
            (2) Denial of double benefit.--Except as provided in 
        paragraph (3), none of the amounts made available under this 
        section for loan guarantees shall be available for commitments 
        to guarantee loans for any projects under which funds, 
        personnel, or property (tangible or intangible) of any Federal 
        agency, instrumentality, personnel, or affiliated entity are 
        expected to be used (directly or indirectly) through 
        acquisitions, contracts, demonstrations, exchanges, grants, 
        incentives, leases, procurements, sales, other transaction 
        authority, or other arrangements to support the project or to 
        obtain goods or services from the project.
            (3) Exception.--Paragraph (2) shall not preclude the use of 
        the loan guarantee authority provided under this section for 
        commitments to guarantee loans for--
                    (A) projects benefitting from otherwise allowable 
                Federal tax benefits;
                    (B) projects benefitting from being located on 
                Federal land pursuant to a lease or right-of-way 
                agreement for which all consideration for all uses is--
                          (i) paid exclusively in cash;
                          (ii) deposited in the Treasury as offsetting 
                      receipts; and
                          (iii) equal to the fair market value;
                    (C) projects benefitting from the Federal insurance 
                program under section 170 of the Atomic Energy Act of 
                1954 (42 U.S.C. 2210); or
                    (D) electric generation projects using transmission 
                facilities owned or operated by a Federal Power 
                Marketing Administration or the Tennessee Valley 
                Authority that have been authorized, approved, and 
                financed independent of the project receiving the 
                guarantee.

    (e) Guarantee.--Section 1701(4)(A) of the Energy Policy Act of 2005 
(42 U.S.C. 16511(4)(A)) is amended by inserting ``, except that a loan 
guarantee may guarantee any debt obligation of a non-Federal borrower to 
any Eligible Lender (as defined in section

[[Page 136 STAT. 2044]]

609.2 of title 10, Code of Federal Regulations)'' before the period at 
the end.
    (f) Source of Payments.--Section 1702(b) of the Energy Policy Act of 
2005 (42 U.S.C. 16512(b)(2)) is amended by adding at the end the 
following:
            ``(3) Source of payments.--The source of a payment received 
        from a borrower under subparagraph (A) or (B) of paragraph (2) 
        may not be a loan or other debt obligation that is made or 
        guaranteed by the Federal Government.''.
SEC. 50142. ADVANCED TECHNOLOGY VEHICLE MANUFACTURING.

    (a) Appropriation.--In addition to amounts otherwise available, 
there is appropriated to the Secretary for fiscal year 2022, out of any 
money in the Treasury not otherwise appropriated, $3,000,000,000, to 
remain available through September 30, 2028, for the costs of providing 
direct loans under section 136(d) of the Energy Independence and 
Security Act of 2007 (42 U.S.C. 17013(d)):  Provided, That funds 
appropriated by this section may be used for the costs of providing 
direct loans for reequipping, expanding, or establishing a manufacturing 
facility in the United States to produce, or for engineering integration 
performed in the United States of, advanced technology vehicles 
described in subparagraph (C), (D), (E), or (F) of section 136(a)(1) of 
such Act (42 U.S.C. 17013(a)(1)) only if such advanced technology 
vehicles emit, under any possible operational mode or condition, low or 
zero exhaust emissions of greenhouse gases.
    (b) Administrative Costs.--The Secretary shall reserve not more than 
$25,000,000 of amounts made available under subsection (a) for 
administrative costs of providing loans as described in subsection (a).
    (c) Elimination of Loan Program Cap.--Section 136(d)(1) of the 
Energy Independence and Security Act of 2007 (42 U.S.C. 17013(d)(1)) is 
amended by striking ``a total of not more than $25,000,000,000 in''.
SEC. 50143. DOMESTIC MANUFACTURING CONVERSION GRANTS.

    (a) Appropriation.--In addition to amounts otherwise available, 
there is appropriated to the Secretary for fiscal year 2022, out of any 
money in the Treasury not otherwise appropriated, $2,000,000,000, to 
remain available through September 30, 2031, to provide grants for 
domestic production of efficient hybrid, plug-in electric hybrid, plug-
in electric drive, and hydrogen fuel cell electric vehicles, in 
accordance with section 712 of the Energy Policy Act of 2005 (42 U.S.C. 
16062).
    (b) <<NOTE: Requirement.>>  Cost Share.--The Secretary shall require 
a recipient of a grant provided under subsection (a) to provide not less 
than 50 percent of the cost of the project carried out using the grant.

    (c) Administrative Costs.--The Secretary shall reserve not more than 
3 percent of amounts made available under subsection (a) for 
administrative costs of making grants described in such subsection (a) 
pursuant to section 712 of the Energy Policy Act of 2005 (42 U.S.C. 
16062).
SEC. 50144. ENERGY INFRASTRUCTURE REINVESTMENT FINANCING.

    (a) Appropriation.--In addition to amounts otherwise available, 
there is appropriated to the Secretary for fiscal year 2022, out of any 
money in the Treasury not otherwise appropriated, $5,000,000,000, to 
remain available through September 30, 2026,

[[Page 136 STAT. 2045]]

to carry out activities under section 1706 of the Energy Policy Act of 
2005.
    (b) <<NOTE: Time period. Applicability.>>  Commitment Authority.--
The Secretary may make, through September 30, 2026, commitments to 
guarantee loans for projects under section 1706 of the Energy Policy Act 
of 2005 the total principal amount of which is not greater than 
$250,000,000,000, subject to the limitations that apply to loan 
guarantees under section 50141(d).

    (c) Energy Infrastructure Reinvestment Financing.--Title XVII of the 
Energy Policy Act of 2005 is amended by inserting after section 1705 (42 
U.S.C. 16516) the following:
``SEC. 1706. <<NOTE: 42 USC 16517.>>  ENERGY INFRASTRUCTURE 
                          REINVESTMENT FINANCING.

    ``(a) In General.--Notwithstanding section 1703, the Secretary may 
make guarantees, including refinancing, under this section only for 
projects that--
            ``(1) retool, repower, repurpose, or replace energy 
        infrastructure that has ceased operations; or
            ``(2) enable operating energy infrastructure to avoid, 
        reduce, utilize, or sequester air pollutants or anthropogenic 
        emissions of greenhouse gases.

    ``(b) Inclusion.--A project under subsection (a) may include the 
remediation of environmental damage associated with energy 
infrastructure.
    ``(c) Requirement.--A project under subsection (a)(1) that involves 
electricity generation through the use of fossil fuels shall be required 
to have controls or technologies to avoid, reduce, utilize, or sequester 
air pollutants and anthropogenic emissions of greenhouse gases.
    ``(d) Application.--To apply for a guarantee under this section, an 
applicant shall submit to the Secretary an application at such time, in 
such manner, and containing such information as the Secretary may 
require, including--
            ``(1) <<NOTE: Plan.>>  a detailed plan describing the 
        proposed project;
            ``(2) <<NOTE: Analysis.>>  an analysis of how the proposed 
        project will engage with and affect associated communities; and
            ``(3) in the case of an applicant that is an electric 
        utility, an assurance that the electric utility shall pass on 
        any financial benefit from the guarantee made under this section 
        to the customers of, or associated communities served by, the 
        electric utility.

    ``(e) <<NOTE: Requirement. Time period.>>  Term.--Notwithstanding 
section 1702(f), the term of an obligation shall require full repayment 
over a period not to exceed 30 years.

    ``(f) Definition of Energy Infrastructure.--In this section, the 
term `energy infrastructure' means a facility, and associated equipment, 
used for--
            ``(1) the generation or transmission of electric energy; or
            ``(2) the production, processing, and delivery of fossil 
        fuels, fuels derived from petroleum, or petrochemical 
        feedstocks.''.

    (d) Conforming Amendment.--Section 1702(o)(3) of the Energy Policy 
Act of 2005 (42 U.S.C. 16512(o)(3)) is amended by inserting ``and 
projects described in section 1706(a)'' before the period at the end.
SEC. 50145. TRIBAL ENERGY LOAN GUARANTEE PROGRAM.

    (a) Appropriation.--In addition to amounts otherwise available, 
there is appropriated to the Secretary for fiscal year 2022,

[[Page 136 STAT. 2046]]

out of any money in the Treasury not otherwise appropriated, 
$75,000,000, to remain available through September 30, 2028, to carry 
out section 2602(c) of the Energy Policy Act of 1992 (25 U.S.C. 
3502(c)), subject to the limitations that apply to loan guarantees under 
section 50141(d).
    (b) Department of Energy Tribal Energy Loan Guarantee Program.--
Section 2602(c) of the Energy Policy Act of 1992 (25 U.S.C. 3502(c)) is 
amended--
            (1) in paragraph (1), by striking ``) for an amount equal to 
        not more than 90 percent of'' and inserting ``, except that a 
        loan guarantee may guarantee any debt obligation of a non-
        Federal borrower to any Eligible Lender (as defined in section 
        609.2 of title 10, Code of Federal Regulations)) for''; and
            (2) in paragraph (4), by striking ``$2,000,000,000'' and 
        inserting ``$20,000,000,000''.

                      PART 5--ELECTRIC TRANSMISSION

SEC. 50151. <<NOTE: 42 USC 18715.>>  TRANSMISSION FACILITY 
                            FINANCING.

    (a) Appropriation.--In addition to amounts otherwise available, 
there is appropriated to the Secretary for fiscal year 2022, out of any 
money in the Treasury not otherwise appropriated, $2,000,000,000, to 
remain available through September 30, 2030, to carry out this section:  
Provided, That the Secretary shall not enter into any loan agreement 
pursuant to this section that could result in disbursements after 
September 30, 2031.
    (b) <<NOTE: Determination.>>  Use of Funds.--The Secretary shall use 
the amounts made available by subsection (a) to carry out a program to 
pay the costs of direct loans to non-Federal borrowers, subject to the 
limitations that apply to loan guarantees under section 50141(d) and 
under such terms and conditions as the Secretary determines to be 
appropriate, for the construction or modification of electric 
transmission facilities designated by the Secretary to be necessary in 
the national interest under section 216(a) of the Federal Power Act (16 
U.S.C. 824p(a)).

    (c) Loans.--A direct loan provided under this section--
            (1) shall have a term that does not exceed the lesser of--
                    (A) 90 percent of the projected useful life, in 
                years, of the eligible transmission facility; and
                    (B) 30 years;
            (2) shall not exceed 80 percent of the project costs; and
            (3) shall, on first issuance, be subject to the condition 
        that the direct loan is not subordinate to other financing.

    (d) <<NOTE: Determination.>>  Interest Rates.--A direct loan 
provided under this section shall bear interest at a rate determined by 
the Secretary, taking into consideration market yields on outstanding 
marketable obligations of the United States of comparable maturities as 
of the date on which the direct loan is made.

    (e) Definition of Direct Loan.--In this section, the term ``direct 
loan'' has the meaning given the term in section 502 of the Federal 
Credit Reform Act of 1990 (2 U.S.C. 661a).
SEC. 50152. <<NOTE: 42 USC 18715a.>>  GRANTS TO FACILITATE THE 
                            SITING OF INTERSTATE ELECTRICITY 
                            TRANSMISSION LINES.

    (a) Appropriation.--In addition to amounts otherwise available, 
there is appropriated to the Secretary for fiscal year 2022, out of any 
money in the Treasury not otherwise appropriated,

[[Page 136 STAT. 2047]]

$760,000,000, to remain available through September 30, 2029, for making 
grants in accordance with this section and for administrative expenses 
associated with carrying out this section.
    (b) Use of Funds.--
            (1) In general.--The Secretary may make a grant under this 
        section to a siting authority for, with respect to a covered 
        transmission project, any of the following activities:
                    (A) Studies and analyses of the impacts of the 
                covered transmission project.
                    (B) Examination of up to 3 alternate siting 
                corridors within which the covered transmission project 
                feasibly could be sited.
                    (C) Participation by the siting authority in 
                regulatory proceedings or negotiations in another 
                jurisdiction, or under the auspices of a Transmission 
                Organization (as defined in section 3 of the Federal 
                Power Act (16 U.S.C. 796)) that is also considering the 
                siting or permitting of the covered transmission 
                project.
                    (D) Participation by the siting authority in 
                regulatory proceedings at the Federal Energy Regulatory 
                Commission or a State regulatory commission for 
                determining applicable rates and cost allocation for the 
                covered transmission project.
                    (E) Other measures and actions that may improve the 
                chances of, and shorten the time required for, approval 
                by the siting authority of the application relating to 
                the siting or permitting of the covered transmission 
                project, as the Secretary determines appropriate.
            (2) Economic development.--The Secretary may make a grant 
        under this section to a siting authority, or other State, local, 
        or Tribal governmental entity, for economic development 
        activities for communities that may be affected by the 
        construction and operation of a covered transmission project, 
        provided that the Secretary shall not enter into any grant 
        agreement pursuant to this section that could result in any 
        outlays after September 30, 2031.

    (c) Conditions.--
            (1) <<NOTE: Requirement. Deadline.>>  Final decision on 
        application.--In order to receive a grant for an activity 
        described in subsection (b)(1), the Secretary shall require a 
        siting authority to agree, in writing, to reach a final decision 
        on the application relating to the siting or permitting of the 
        applicable covered transmission project not later than 2 years 
        after the date on which such grant is provided, unless the 
        Secretary authorizes an extension for good cause.
            (2) Federal share.--The Federal share of the cost of an 
        activity described in subparagraph (C) or (D) of subsection 
        (b)(1) shall not exceed 50 percent.
            (3) <<NOTE: Disbursement.>>  Economic development.--The 
        Secretary may only disburse grant funds for economic development 
        activities under subsection (b)(2)--
                    (A) to a siting authority upon approval by the 
                siting authority of the applicable covered transmission 
                project; and
                    (B) to any other State, local, or Tribal 
                governmental entity upon commencement of construction of 
                the applicable

[[Page 136 STAT. 2048]]

                covered transmission project in the area under the 
                jurisdiction of the entity.

    (d) <<NOTE: Deadline.>>  Returning Funds.--If a siting authority 
that receives a grant for an activity described in subsection (b)(1) 
fails to use all grant funds within 2 years of receipt, the siting 
authority shall return to the Secretary any such unused funds.

    (e) Definitions.--In this section:
            (1) Covered transmission project.--The term ``covered 
        transmission project'' means a high-voltage interstate or 
        offshore electricity transmission line--
                    (A) that is proposed to be constructed and to 
                operate--
                          (i) at a minimum of 275 kilovolts of either 
                      alternating-current or direct-current electric 
                      energy by an entity; or
                          (ii) offshore and at a minimum of 200 
                      kilovolts of either alternating-current or direct-
                      current electric energy by an entity; and
                    (B) for which such entity has applied, or informed a 
                siting authority of such entity's intent to apply, for 
                regulatory approval.
            (2) Siting authority.--The term ``siting authority'' means a 
        State, local, or Tribal governmental entity with authority to 
        make a final determination regarding the siting, permitting, or 
        regulatory status of a covered transmission project that is 
        proposed to be located in an area under the jurisdiction of the 
        entity.
SEC. 50153. <<NOTE: 42 USC 18715b.>>  INTERREGIONAL AND OFFSHORE 
                            WIND ELECTRICITY TRANSMISSION 
                            PLANNING, MODELING, AND ANALYSIS.

    (a) Appropriation.--In addition to amounts otherwise available, 
there is appropriated to the Secretary for fiscal year 2022, out of any 
money in the Treasury not otherwise appropriated, $100,000,000, to 
remain available through September 30, 2031, to carry out this section.
    (b) Use of Funds.--The Secretary shall use amounts made available 
under subsection (a)--
            (1) to pay expenses associated with convening relevant 
        stakeholders to address the development of interregional 
        electricity transmission and transmission of electricity that is 
        generated by offshore wind; and
            (2) <<NOTE: Determination.>>  to conduct planning, modeling, 
        and analysis regarding interregional electricity transmission 
        and transmission of electricity that is generated by offshore 
        wind, taking into account the local, regional, and national 
        economic, reliability, resilience, security, public policy, and 
        environmental benefits of interregional electricity transmission 
        and transmission of electricity that is generated by offshore 
        wind, including planning, modeling, and analysis, as the 
        Secretary determines appropriate, pertaining to--
                    (A) clean energy integration into the electric grid, 
                including the identification of renewable energy zones;
                    (B) the effects of changes in weather due to climate 
                change on the reliability and resilience of the electric 
                grid;
                    (C) cost allocation methodologies that facilitate 
                the expansion of the bulk power system;

[[Page 136 STAT. 2049]]

                    (D) the benefits of coordination between generator 
                interconnection processes and transmission planning 
                processes;
                    (E) the effect of increased electrification on the 
                electric grid;
                    (F) power flow modeling;
                    (G) the benefits of increased interconnections or 
                interties between or among the Western Interconnection, 
                the Eastern Interconnection, the Electric Reliability 
                Council of Texas, and other interconnections, as 
                applicable;
                    (H) the cooptimization of transmission and 
                generation, including variable energy resources, energy 
                storage, and demand-side management;
                    (I) the opportunities for use of nontransmission 
                alternatives, energy storage, and grid-enhancing 
                technologies;
                    (J) economic development opportunities for 
                communities arising from development of interregional 
                electricity transmission and transmission of electricity 
                that is generated by offshore wind;
                    (K) evaluation of existing rights-of-way and the 
                need for additional transmission corridors; and
                    (L) a planned national transmission grid, which 
                would include a networked transmission system to 
                optimize the existing grid for interconnection of 
                offshore wind farms.

                           PART 6--INDUSTRIAL

SEC. 50161. <<NOTE: 42 USC 17113a.>>  ADVANCED INDUSTRIAL 
                            FACILITIES DEPLOYMENT PROGRAM.

    (a) Office of Clean Energy Demonstrations.--In addition to amounts 
otherwise available, there is appropriated to the Secretary, acting 
through the Office of Clean Energy Demonstrations, for fiscal year 2022, 
out of any money in the Treasury not otherwise appropriated, 
$5,812,000,000, to remain available through September 30, 2026, to carry 
out this section.
    (b) Financial Assistance.--The Secretary shall use funds 
appropriated by subsection (a) to provide financial assistance, on a 
competitive basis, to eligible entities to carry out projects for--
            (1) the purchase and installation, or implementation, of 
        advanced industrial technology at an eligible facility;
            (2) retrofits, upgrades to, or operational improvements at 
        an eligible facility to install or implement advanced industrial 
        technology; or
            (3) engineering studies and other work needed to prepare an 
        eligible facility for activities described in paragraph (1) or 
        (2).

    (c) Application.--To be eligible to receive financial assistance 
under subsection (b), an eligible entity shall submit to the Secretary 
an application at such time, in such manner, and containing such 
information as the Secretary may require, including the expected 
greenhouse gas emissions reductions to be achieved by carrying out the 
project.
    (d) <<NOTE: Determination.>>  Priority.--In providing financial 
assistance under subsection (b), the Secretary shall give priority 
consideration to projects on the basis of, as determined by the 
Secretary--
            (1) the expected greenhouse gas emissions reductions to be 
        achieved by carrying out the project;

[[Page 136 STAT. 2050]]

            (2) the extent to which the project would provide the 
        greatest benefit for the greatest number of people within the 
        area in which the eligible facility is located; and
            (3) whether the eligible entity participates or would 
        participate in a partnership with purchasers of the output of 
        the eligible facility.

    (e) <<NOTE: Requirement.>>  Cost Share.--The Secretary shall require 
an eligible entity to provide not less than 50 percent of the cost of a 
project carried out pursuant to this section.

    (f) Administrative Costs.--The Secretary shall reserve not more than 
$300,000,000 of amounts made available under subsection (a) for 
administrative costs of carrying out this section.
    (g) Definitions.--In this section:
            (1) <<NOTE: Determination.>>  Advanced industrial 
        technology.--The term ``advanced industrial technology'' means a 
        technology directly involved in an industrial process, as 
        described in any of paragraphs (1) through (6) of section 454(c) 
        of the Energy Independence and Security Act of 2007 (42 U.S.C. 
        17113(c)), and designed to accelerate greenhouse gas emissions 
        reduction progress to net-zero at an eligible facility, as 
        determined by the Secretary.
            (2) Eligible entity.--The term ``eligible entity'' means the 
        owner or operator of an eligible facility.
            (3) Eligible facility.--The term ``eligible facility'' means 
        a domestic, non-Federal, nonpower industrial or manufacturing 
        facility engaged in energy-intensive industrial processes, 
        including production processes for iron, steel, steel mill 
        products, aluminum, cement, concrete, glass, pulp, paper, 
        industrial ceramics, chemicals, and other energy intensive 
        industrial processes, as determined by the Secretary.
            (4) Financial assistance.--The term ``financial assistance'' 
        means a grant, rebate, direct loan, or cooperative agreement.

                      PART 7--OTHER ENERGY MATTERS

SEC. 50171. DEPARTMENT OF ENERGY OVERSIGHT.

    In addition to amounts otherwise available, there is appropriated to 
the Secretary for fiscal year 2022, out of any money in the Treasury not 
otherwise appropriated, $20,000,000, to remain available through 
September 30, 2031, for oversight by the Department of Energy Office of 
Inspector General of the Department of Energy activities for which 
funding is appropriated in this subtitle.
SEC. 50172. NATIONAL LABORATORY INFRASTRUCTURE.

    (a) Office of Science.--In addition to amounts otherwise available, 
there is appropriated to the Secretary, acting through the Director of 
the Office of Science, for fiscal year 2022, out of any money in the 
Treasury not otherwise appropriated, to remain available through 
September 30, 2027--
            (1) $133,240,000 to carry out activities for science 
        laboratory infrastructure projects;
            (2) $303,656,000 to carry out activities for high energy 
        physics construction and major items of equipment projects;
            (3) $280,000,000 to carry out activities for fusion energy 
        science construction and major items of equipment projects;
            (4) $217,000,000 to carry out activities for nuclear physics 
        construction and major items of equipment projects;

[[Page 136 STAT. 2051]]

            (5) $163,791,000 to carry out activities for advanced 
        scientific computing research facilities;
            (6) $294,500,000 to carry out activities for basic energy 
        sciences projects; and
            (7) $157,813,000 to carry out activities for isotope 
        research and development facilities.

    (b) Office of Fossil Energy and Carbon Management.--In addition to 
amounts otherwise available, there is appropriated to the Secretary for 
fiscal year 2022, out of any money in the Treasury not otherwise 
appropriated, $150,000,000, to remain available through September 30, 
2027, to carry out activities for infrastructure and general plant 
projects carried out by the Office of Fossil Energy and Carbon 
Management.
    (c) Office of Nuclear Energy.--In addition to amounts otherwise 
available, there is appropriated to the Secretary for fiscal year 2022, 
out of any money in the Treasury not otherwise appropriated, 
$150,000,000, to remain available through September 30, 2027, to carry 
out activities for infrastructure and general plant projects carried out 
by the Office of Nuclear Energy.
    (d) Office of Energy Efficiency and Renewable Energy.--In addition 
to amounts otherwise available, there is appropriated to the Secretary 
for fiscal year 2022, out of any money in the Treasury not otherwise 
appropriated, $150,000,000, to remain available through September 30, 
2027, to carry out activities for infrastructure and general plant 
projects carried out by the Office of Energy Efficiency and Renewable 
Energy.
SEC. 50173. AVAILABILITY OF HIGH-ASSAY LOW-ENRICHED URANIUM.

    (a) Appropriations.--In addition to amounts otherwise available, 
there is appropriated to the Secretary of for fiscal year 2022, out of 
any money in the Treasury not otherwise appropriated, to remain 
available through September 30, 2026--
            (1) $100,000,000 to carry out the program elements described 
        in subparagraphs (A) through (C) of section 2001(a)(2) of the 
        Energy Act of 2020 (42 U.S.C. 16281(a)(2));
            (2) $500,000,000 to carry out the program elements described 
        in subparagraphs (D) through (H) of that section; and
            (3) $100,000,000 to carry out activities to support the 
        availability of high-assay low-enriched uranium for civilian 
        domestic research, development, demonstration, and commercial 
        use under section 2001 of the Energy Act of 2020 (42 U.S.C. 
        16281).

    (b) Competitive Procedures.--To the maximum extent practicable, the 
Department of Energy shall, in a manner consistent with section 989 of 
the Energy Policy Act of 2005 (42 U.S.C. 16353), use a competitive, 
merit-based review process in carrying out research, development, 
demonstration, and deployment activities under section 2001 of the 
Energy Act of 2020 (42 U.S.C. 16281).
    (c) Administrative Expenses.--The Secretary may use not more than 3 
percent of the amounts appropriated by subsection (a) for administrative 
purposes.

[[Page 136 STAT. 2052]]

                      Subtitle B--Natural Resources

                       PART 1--GENERAL PROVISIONS

SEC. 50211. <<NOTE: 43 USC 3006 note.>>  DEFINITIONS.

    In this subtitle:
            (1) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (2) United states insular areas.--The term ``United States 
        Insular Areas'' means American Samoa, the Commonwealth of the 
        Northern Mariana Islands, Guam, the Commonwealth of Puerto Rico, 
        and the United States Virgin Islands.

                          PART 2--PUBLIC LANDS

SEC. 50221. NATIONAL PARKS AND PUBLIC LANDS CONSERVATION AND 
                            RESILIENCE.

    In addition to amounts otherwise available, there is appropriated to 
the Secretary for fiscal year 2022, out of any money in the Treasury not 
otherwise appropriated, $250,000,000, to remain available through 
September 30, 2031, to carry out projects for the conservation, 
protection, and resiliency of lands and resources administered by the 
National Park Service and Bureau of Land Management. None of the funds 
provided under this section shall be subject to cost-share or matching 
requirements.
SEC. 50222. NATIONAL PARKS AND PUBLIC LANDS CONSERVATION AND 
                            ECOSYSTEM RESTORATION.

    In addition to amounts otherwise available, there is appropriated to 
the Secretary for fiscal year 2022, out of any money in the Treasury not 
otherwise appropriated, $250,000,000, to remain available through 
September 30, 2031, to carry out conservation, ecosystem and habitat 
restoration projects on lands administered by the National Park Service 
and Bureau of Land Management. None of the funds provided under this 
section shall be subject to cost-share or matching requirements.
SEC. 50223. NATIONAL PARK SERVICE EMPLOYEES.

    In addition to amounts otherwise available, there is appropriated to 
the Secretary for fiscal year 2022, out of any money in the Treasury not 
otherwise appropriated, $500,000,000, to remain available through 
September 30, 2030, to hire employees to serve in units of the National 
Park System or national historic or national scenic trails administered 
by the National Park Service.
SEC. 50224. NATIONAL PARK SYSTEM DEFERRED MAINTENANCE.

    In addition to amounts otherwise available, there is appropriated to 
the Secretary for fiscal year 2022, out of any money in the Treasury not 
otherwise appropriated, $200,000,000, to remain available through 
September 30, 2026, to carry out priority deferred maintenance projects, 
through direct expenditures or transfers, within the boundaries of the 
National Park System.

[[Page 136 STAT. 2053]]

                PART 3--DROUGHT RESPONSE AND PREPAREDNESS

SEC. 50231. BUREAU OF RECLAMATION DOMESTIC WATER SUPPLY PROJECTS.

    In addition to amounts otherwise available, there is appropriated to 
the Secretary, acting through the Commissioner of Reclamation, for 
fiscal year 2022, out of any money in the Treasury not otherwise 
appropriated, $550,000,000, to remain available through September 30, 
2031, for grants, contracts, or financial assistance agreements for 
disadvantaged communities (identified according to criteria adopted by 
the Commissioner of Reclamation) in a manner as determined by the 
Commissioner of Reclamation for up to 100 percent of the cost of the 
planning, design, or construction of water projects the primary purpose 
of which is to provide domestic water supplies to communities or 
households that do not have reliable access to domestic water supplies 
in a State or territory described in the first section of the Act of 
June 17, 1902 (43 U.S.C. 391; 32 Stat. 388, chapter 1093).
SEC. 50232. CANAL IMPROVEMENT PROJECTS.

    In addition to amounts otherwise available, there is appropriated to 
the Secretary, acting through the Commissioner of Reclamation, for 
fiscal year 2022, out of any money in the Treasury not otherwise 
appropriated, $25,000,000, to remain available through September 30, 
2031, for the design, study, and implementation of projects (including 
pilot and demonstration projects) to cover water conveyance facilities 
with solar panels to generate renewable energy in a manner as determined 
by the Secretary or for other solar projects associated with Bureau of 
Reclamation projects that increase water efficiency and assist in 
implementation of clean energy goals.
SEC. 50233. DROUGHT MITIGATION IN THE RECLAMATION STATES.

    (a) Definition of Reclamation State.--In this section, the term 
``Reclamation State'' means a State or territory described in the first 
section of the Act of June 17, 1902 (32 Stat. 388, chapter 1093; 43 
U.S.C. 391).
    (b) Appropriation.--In addition to amounts otherwise available, 
there is appropriated to the Secretary (acting through the Commissioner 
of Reclamation), for fiscal year 2022, out of any money in the Treasury 
not otherwise appropriated, $4,000,000,000, to remain available through 
September 30, 2026, for grants, contracts, or financial assistance 
agreements, in accordance with the reclamation laws, to or with public 
entities and Indian Tribes, that provide for the conduct of the 
following activities to mitigate the impacts of drought in the 
Reclamation States, with priority given to the Colorado River Basin and 
other basins experiencing comparable levels of long-term drought, to be 
implemented in compliance with applicable environmental law:
            (1) Compensation for a temporary or multiyear voluntary 
        reduction in diversion of water or consumptive water use.
            (2) Voluntary system conservation projects that achieve 
        verifiable reductions in use of or demand for water supplies or 
        provide environmental benefits in the Lower Basin or Upper Basin 
        of the Colorado River.

[[Page 136 STAT. 2054]]

            (3) Ecosystem and habitat restoration projects to address 
        issues directly caused by drought in a river basin or inland 
        water body.

    (c) Report.--Not later than 1 year after the date of enactment of 
this Act, and each year thereafter, the Secretary shall submit to 
Congress a report that describes any expenditures under this section.

                         PART 4--INSULAR AFFAIRS

SEC. 50241. OFFICE OF INSULAR AFFAIRS CLIMATE CHANGE TECHNICAL 
                            ASSISTANCE.

    (a) In General.--In addition to amounts otherwise available, there 
is appropriated to the Secretary, acting through the Office of Insular 
Affairs, for fiscal year 2022, out of any money in the Treasury not 
otherwise appropriated, $15,000,000, to remain available through 
September 30, 2026, to provide technical assistance for climate change 
planning, mitigation, adaptation, and resilience to United States 
Insular Areas.
    (b) Administrative Expenses.--In addition to amounts otherwise 
available, there is appropriated to the Secretary, acting through the 
Office of Insular Affairs, for fiscal year 2022, out of any money in the 
Treasury not otherwise appropriated, $900,000, to remain available 
through September 30, 2026, for necessary administrative expenses 
associated with carrying out this section.

                          PART 5--OFFSHORE WIND

SEC. 50251. LEASING ON THE OUTER CONTINENTAL SHELF.

    (a) Leasing Authorized.--The Secretary may grant leases, easements, 
and rights-of-way pursuant to section 8(p)(1)(C) of the Outer 
Continental Shelf Lands Act (43 U.S.C. 1337(p)(1)(C)) in an area 
withdrawn by--
            (1) the Presidential memorandum entitled ``Memorandum on the 
        Withdrawal of Certain Areas of the United States Outer 
        Continental Shelf from Leasing Disposition'' and dated September 
        8, 2020; or
            (2) the Presidential memorandum entitled ``Presidential 
        Determination on the Withdrawal of Certain Areas of the United 
        States Outer Continental Shelf from Leasing Disposition'' and 
        dated September 25, 2020.

    (b) Offshore Wind for the Territories.--
            (1) Application of outer continental shelf lands act with 
        respect to territories of the united states.--
                    (A) In general.--Section 2 of the Outer Continental 
                Shelf Lands Act (43 U.S.C. 1331) is amended--
                          (i) in subsection (a)--
                                    (I) by striking ``means all'' and 
                                inserting the following: ``means--
            ``(1) all''; and
                                    (II) in paragraph (1) (as so 
                                designated), by striking ``control;'' 
                                and inserting the following: ``control 
                                or within the exclusive economic zone of 
                                the United States and adjacent to any 
                                territory of the United States; and''; 
                                and
                                    (III) by adding at the end 
                                following:

[[Page 136 STAT. 2055]]

            ``(2) does not include any area conveyed by Congress to a 
        territorial government for administration;'';
                          (ii) in subsection (p), by striking ``and'' 
                      after the semicolon at the end;
                          (iii) in subsection (q), by striking the 
                      period at the end and inserting ``; and''; and
                          (iv) by adding at the end the following:

    ``(r) The term `State' means--
            ``(1) each of the several States;
            ``(2) the Commonwealth of Puerto Rico;
            ``(3) Guam;
            ``(4) American Samoa;
            ``(5) the United States Virgin Islands; and
            ``(6) the Commonwealth of the Northern Mariana Islands.''.
                    (B) Exclusions.--Section 18 of the Outer Continental 
                Shelf Lands Act (43 U.S.C. 1344) is amended by adding at 
                the end the following:
                          ``(i) Application.--This section shall not 
                      apply to the scheduling of any lease sale in an 
                      area of the outer Continental Shelf that is 
                      adjacent to the Commonwealth of Puerto Rico, Guam, 
                      American Samoa, the United States Virgin Islands, 
                      or the Commonwealth of the Northern Mariana 
                      Islands.''.
            (2) Wind lease sales for areas of the outer continental 
        shelf.--The Outer Continental Shelf Lands Act (43 U.S.C. 1331 et 
        seq.) is amended by adding at the end the following:
``SEC. 33. <<NOTE: 43 USC 1356c.>>  WIND LEASE SALES FOR AREAS OF 
                      THE OUTER CONTINENTAL SHELF OFFSHORE OF 
                      TERRITORIES OF THE UNITED STATES.

    ``(a) Wind Lease Sales Off Coasts of Territories of the United 
States.--
            ``(1) Call for information and nominations.--
                    ``(A) In general.--The Secretary shall issue calls 
                for information and nominations for proposed wind lease 
                sales for areas of the outer Continental Shelf described 
                in paragraph (2) that are determined to be feasible.
                    ``(B) <<NOTE: Deadline.>>  Initial call.--Not later 
                than September 30, 2025, the Secretary shall issue an 
                initial call for information and nominations under this 
                paragraph.
            ``(2) Conditional wind lease sales.--The Secretary may 
        conduct wind lease sales in each area within the exclusive 
        economic zone of the United States adjacent to the Commonwealth 
        of Puerto Rico, Guam, American Samoa, the United States Virgin 
        Islands, or the Commonwealth of the Northern Mariana Islands 
        that meets each of the following criteria:
                    ``(A) The Secretary has concluded that a wind lease 
                sale in the area is feasible.
                    ``(B) <<NOTE: Determination.>>  The Secretary has 
                determined that there is sufficient interest in leasing 
                the area.
                    ``(C) The Secretary has consulted with the Governor 
                of the territory regarding the suitability of the area 
                for wind energy development.''.

[[Page 136 STAT. 2056]]

                      PART 6--FOSSIL FUEL RESOURCES

SEC. 50261. <<NOTE: Time period. Effective date.>>  OFFSHORE OIL 
                            AND GAS ROYALTY RATE.

    Section 8(a)(1) of the Outer Continental Shelf Lands Act (43 U.S.C. 
1337(a)(1)) is amended--
            (1) in each of subparagraphs (A) and (C), by striking ``not 
        less than 12\1/2\ per centum'' each place it appears and 
        inserting ``not less than 16\2/3\ percent, but not more than 
        18\3/4\ percent, during the 10-year period beginning on the date 
        of enactment of the Act titled `An Act to provide for 
        reconciliation pursuant to title II of S. Con. Res. 14', and not 
        less than 16\2/3\ percent thereafter,'';
            (2) in subparagraph (F), by striking ``no less than 12\1/2\ 
        per centum'' and inserting ``not less than 16\2/3\ percent, but 
        not more than 18\3/4\ percent, during the 10-year period 
        beginning on the date of enactment of the Act titled `An Act to 
        provide for reconciliation pursuant to title II of S. Con. Res. 
        14', and not less than 16\2/3\ percent thereafter,''; and
            (3) in subparagraph (H), by striking ``no less than 12 and 
        \1/2\ per centum'' and inserting ``not less than 16\2/3\ 
        percent, but not more than 18\3/4\ percent, during the 10-year 
        period beginning on the date of enactment of the Act titled `An 
        Act to provide for reconciliation pursuant to title II of S. 
        Con. Res. 14', and not less than 16\2/3\ percent thereafter,''.
SEC. 50262. <<NOTE: Time periods. Effective dates.>>  MINERAL 
                            LEASING ACT MODERNIZATION.

    (a) Onshore Oil and Gas Royalty Rates.--
            (1) Lease of oil and gas land.--Section 17 of the Mineral 
        Leasing Act (30 U.S.C. 226) is amended--
                    (A) in subsection (b)(1)(A), in the fifth sentence--
                          (i) by striking ``12.5'' and inserting ``16\2/
                      3\''; and
                          (ii) by inserting ``or, in the case of a lease 
                      issued during the 10-year period beginning on the 
                      date of enactment of the Act titled `An Act to 
                      provide for reconciliation pursuant to title II of 
                      S. Con. Res. 14', 16\2/3\ percent in amount or 
                      value of the production removed or sold from the 
                      lease'' before the period at the end; and
                    (B) by striking ``12\1/2\ per centum'' each place it 
                appears and inserting ``16\2/3\ percent''.
            (2) Conditions for reinstatement.--Section 31(e)(3) of the 
        Mineral Leasing Act (30 U.S.C. 188(e)(3)) is amended by striking 
        ``16\2/3\'' each place it appears and inserting ``20''.

    (b) Oil and Gas Minimum Bid.--Section 17(b) of the Mineral Leasing 
Act (30 U.S.C. 226(b)) is amended--
            (1) in paragraph (1)(B), in the first sentence, by striking 
        ``$2 per acre for a period of 2 years from the date of enactment 
        of the Federal Onshore Oil and Gas Leasing Reform Act of 1987.'' 
        and inserting ``$10 per acre during the 10-year period beginning 
        on the date of enactment of the Act titled `An Act to provide 
        for reconciliation pursuant to title II of S. Con. Res. 14'.''; 
        and
            (2) in paragraph (2)(C), by striking ``$2 per acre'' and 
        inserting ``$10 per acre''.

    (c) Fossil Fuel Rental Rates.--
            (1) Annual rentals.--Section 17(d) of the Mineral Leasing 
        Act (30 U.S.C. 226(d)) is amended, in the first sentence, by

[[Page 136 STAT. 2057]]

        striking ``$1.50 per acre'' and all that follows through the 
        period at the end and inserting ``$3 per acre per year during 
        the 2-year period beginning on the date the lease begins for new 
        leases, and after the end of that 2-year period, $5 per acre per 
        year for the following 6-year period, and not less than $15 per 
        acre per year thereafter, or, in the case of a lease issued 
        during the 10-year period beginning on the date of enactment of 
        the Act titled `An Act to provide for reconciliation pursuant to 
        title II of S. Con. Res. 14', $3 per acre per year during the 2-
        year period beginning on the date the lease begins, and after 
        the end of that 2-year period, $5 per acre per year for the 
        following 6-year period, and $15 per acre per year 
        thereafter.''.
            (2) Rentals in reinstated leases.--Section 31(e)(2) of the 
        Mineral Leasing Act (30 U.S.C. 188(e)(2)) is amended by striking 
        ``$10'' and inserting ``$20''.

    (d) Expression of Interest Fee.--Section 17 of the Mineral Leasing 
Act (30 U.S.C. 226) is amended by adding at the end the following:
    ``(q) Fee for Expression of Interest.--
            ``(1) <<NOTE: Assessment.>>  In general.--The Secretary 
        shall assess a nonrefundable fee against any person that, in 
        accordance with procedures established by the Secretary to carry 
        out this subsection, submits an expression of interest in 
        leasing land available for disposition under this section for 
        exploration for, and development of, oil or gas.
            ``(2) Amount of fee.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                fee assessed under paragraph (1) shall be $5 per acre of 
                the area covered by the applicable expression of 
                interest.
                    ``(B) <<NOTE: Regulation.>>  Adjustment of fee.--The 
                Secretary shall, by regulation, not less frequently than 
                every 4 years, adjust the amount of the fee under 
                subparagraph (A) to reflect the change in inflation.''.

    (e) Elimination of Noncompetitive Leasing.--
            (1) In general.--Section 17 of the Mineral Leasing Act (30 
        U.S.C. 226) is amended--
                    (A) in subsection (b)--
                          (i) in paragraph (1)(A)--
                                    (I) in the first sentence, by 
                                striking ``paragraphs (2) and (3) of 
                                this subsection'' and inserting 
                                ``paragraph (2)''; and
                                    (II) by striking the last sentence; 
                                and
                          (ii) by striking paragraph (3);
                    (B) by striking subsection (c) and inserting the 
                following:

    ``(c) Additional Rounds of Competitive Bidding.--Land made available 
for leasing under subsection (b)(1) for which no bid is accepted or 
received, or the land for which a lease terminates, expires, is 
cancelled, or is relinquished, may be made available by the Secretary of 
the Interior for a new round of competitive bidding under that 
subsection.''; and
                    (C) by striking subsection (e) and inserting the 
                following:

    ``(e) Term of Lease.--

[[Page 136 STAT. 2058]]

            ``(1) In general.--Any lease issued under this section, 
        including a lease for tar sand areas, shall be for a primary 
        term of 10 years.
            ``(2) Continuation of lease.--A lease described in paragraph 
        (1) shall continue after the primary term of the lease for any 
        period during which oil or gas is produced in paying quantities.
            ``(3) Additional extensions.--Any lease issued under this 
        section for land on which, or for which under an approved 
        cooperative or unit plan of development or operation, actual 
        drilling operations were commenced and diligently prosecuted 
        prior to the end of the primary term of the lease shall be 
        extended for 2 years and for any period thereafter during which 
        oil or gas is produced in paying quantities.''.
            (2) Conforming amendments.--Section 31 of the Mineral 
        Leasing Act (30 U.S.C. 188) is amended--
                    (A) in subsection (d)(1), in the first sentence, by 
                striking ``or section 17(c) of this Act'';
                    (B) in subsection (e)--
                          (i) in paragraph (2)--
                                    (I) by striking ``either''; and
                                    (II) by striking ``or the 
                                inclusion'' and all that follows through 
                                ``, all''; and
                          (ii) in paragraph (3)--
                                    (I) in subparagraph (A), by adding 
                                ``and'' after the semicolon;
                                    (II) by striking subparagraph (B); 
                                and
                                    (III) by striking ``(3)(A) payment'' 
                                and inserting the following:
            ``(3) payment'';
                    (C) in subsection (g)--
                          (i) in paragraph (1), by striking ``as a 
                      competitive'' and all that follows through ``of 
                      this Act'' and inserting ``in the same manner as 
                      the original lease issued pursuant to section 
                      17'';
                          (ii) by striking paragraph (2);
                          (iii) by redesignating paragraphs (3) and (4) 
                      as paragraphs (2) and (3), respectively; and
                          (iv) in paragraph (2) (as so redesignated), by 
                      striking ``applicable to leases issued under 
                      subsection 17(c) of this Act (30 U.S.C. 226(c)) 
                      except,'' and inserting ``except'';
                    (D) in subsection (h), by striking ``subsections (d) 
                and (f) of this section'' and inserting ``subsection 
                (d)'';
                    (E) in subsection (i), by striking ``(i)(1) In 
                acting'' and all that follows through ``of this 
                section'' in paragraph (2) and inserting the following:
                          ``(i) Royalty reduction in reinstated 
                      leases.--In acting on a petition for reinstatement 
                      pursuant to subsection (d)'';
                    (F) by striking subsection (f); and
                    (G) by redesignating subsections (g) through (j) as 
                subsections (f) through (i), respectively.
SEC. 50263. <<NOTE: 30 USC 1727.>>  ROYALTIES ON ALL EXTRACTED 
                            METHANE.

    (a) In General.--For all leases issued after the date of enactment 
of this Act, except as provided in subsection (b), royalties

[[Page 136 STAT. 2059]]

paid for gas produced from Federal land and on the outer Continental 
Shelf shall be assessed on all gas produced, including all gas that is 
consumed or lost by venting, flaring, or negligent releases through any 
equipment during upstream operations.
    (b) Exception.--Subsection (a) shall not apply with respect to--
            (1) <<NOTE: Time period.>>  gas vented or flared for not 
        longer than 48 hours in an emergency situation that poses a 
        danger to human health, safety, or the environment;
            (2) gas used or consumed within the area of the lease, unit, 
        or communitized area for the benefit of the lease, unit, or 
        communitized area; or
            (3) gas that is unavoidably lost.
SEC. 50264. <<NOTE: Deadlines.>>  LEASE SALES UNDER THE 2017-2022 
                            OUTER CONTINENTAL SHELF LEASING 
                            PROGRAM.

    (a) Definitions.--In this section:
            (1) Lease sale 257.--The term ``Lease Sale 257'' means the 
        lease sale numbered 257 that was approved in the Record of 
        Decision described in the notice of availability of a record of 
        decision issued on August 31, 2021, entitled ``Gulf of Mexico, 
        Outer Continental Shelf (OCS), Oil and Gas Lease Sale 257'' (86 
        Fed. Reg. 50160 (September 7, 2021)), and is the subject of the 
        final notice of sale entitled ``Gulf of Mexico Outer Continental 
        Shelf Oil and Gas Lease Sale 257'' (86 Fed. Reg. 54728 (October 
        4, 2021)).
            (2) Lease sale 258.--The term ``Lease Sale 258'' means the 
        lease sale numbered 258 described in the 2017-2022 Outer 
        Continental Shelf Oil and Gas Leasing Proposed Final Program 
        published on November 18, 2016, and approved by the Secretary in 
        the Record of Decision issued on January 17, 2017, described in 
        the notice of availability entitled ``Record of Decision for the 
        2017-2022 Outer Continental Shelf Oil and Gas Leasing Program 
        Final Programmatic Environmental Impact Statement; MMAA104000'' 
        (82 Fed. Reg. 6643 (January 19, 2017)).
            (3) Lease sale 259.--The term ``Lease Sale 259'' means the 
        lease sale numbered 259 described in the 2017-2022 Outer 
        Continental Shelf Oil and Gas Leasing Proposed Final Program 
        published on November 18, 2016, and approved by the Secretary in 
        the Record of Decision issued on January 17, 2017, described in 
        the notice of availability entitled ``Record of Decision for the 
        2017-2022 Outer Continental Shelf Oil and Gas Leasing Program 
        Final Programmatic Environmental Impact Statement; MMAA104000'' 
        (82 Fed. Reg. 6643 (January 19, 2017)).
            (4) Lease sale 261.--The term ``Lease Sale 261'' means the 
        lease sale numbered 261 described in the 2017-2022 Outer 
        Continental Shelf Oil and Gas Leasing Proposed Final Program 
        published on November 18, 2016, and approved by the Secretary in 
        the Record of Decision issued on January 17, 2017, described in 
        the notice of availability entitled ``Record of Decision for the 
        2017-2022 Outer Continental Shelf Oil and Gas Leasing Program 
        Final Programmatic Environmental Impact Statement; MMAA104000'' 
        (82 Fed. Reg. 6643 (January 19, 2017)).

    (b) Lease Sale 257 Reinstatement.--
            (1) Acceptance of bids.--Not later 30 days after the date of 
        enactment of this Act, the Secretary shall, without modification 
        or delay--

[[Page 136 STAT. 2060]]

                    (A) accept the highest valid bid for each tract or 
                bidding unit of Lease Sale 257 for which a valid bid was 
                received on November 17, 2021; and
                    (B) provide the appropriate lease form to the 
                winning bidder to execute and return.
            (2) Lease issuance.--On receipt of an executed lease form 
        under paragraph (1)(B) and payment of the rental for the first 
        year, the balance of the bonus bid (unless deferred), and any 
        required bond or security from the high bidder, the Secretary 
        shall promptly issue to the high bidder a fully executed lease, 
        in accordance with--
                    (A) the regulations in effect on the date of Lease 
                Sale 257; and
                    (B) the terms and conditions of the final notice of 
                sale entitled ``Gulf of Mexico Outer Continental Shelf 
                Oil and Gas Lease Sale 257'' (86 Fed. Reg. 54728 
                (October 4, 2021)).

    (c) Requirement for Lease Sale 258.--Notwithstanding the expiration 
of the 2017-2022 leasing program, not later than December 31, 2022, the 
Secretary shall conduct Lease Sale 258 in accordance with the Record of 
Decision approved by the Secretary on January 17, 2017, described in the 
notice of availability entitled ``Record of Decision for the 2017-2022 
Outer Continental Shelf Oil and Gas Leasing Program Final Programmatic 
Environmental Impact Statement; MMAA104000'' issued on January 17, 2017 
(82 Fed. Reg. 6643 (January 19, 2017)).
    (d) Requirement for Lease Sale 259.--Notwithstanding the expiration 
of the 2017-2022 leasing program, not later than March 31, 2023, the 
Secretary shall conduct Lease Sale 259 in accordance with the Record of 
Decision approved by the Secretary on January 17, 2017, described in the 
notice of availability entitled ``Record of Decision for the 2017-2022 
Outer Continental Shelf Oil and Gas Leasing Program Final Programmatic 
Environmental Impact Statement; MMAA104000'' issued on January 17, 2017 
(82 Fed. Reg. 6643 (January 19, 2017)).
    (e) Requirement for Lease Sale 261.--Notwithstanding the expiration 
of the 2017-2022 leasing program, not later than September 30, 2023, the 
Secretary shall conduct Lease Sale 261 in accordance with the Record of 
Decision approved by the Secretary on January 17, 2017, described in the 
notice of availability entitled ``Record of Decision for the 2017-2022 
Outer Continental Shelf Oil and Gas Leasing Program Final Programmatic 
Environmental Impact Statement; MMAA104000'' issued on January 17, 2017 
(82 Fed. Reg. 6643 (January 19, 2017)).
SEC. 50265. <<NOTE: 43 USC 3006.>>  ENSURING ENERGY SECURITY.

    (a) Definitions.--In this section:
            (1) Federal land.--The term ``Federal land'' means public 
        lands (as defined in section 103 of the Federal Land Policy and 
        Management Act of 1976 (43 U.S.C. 1702)).
            (2) Offshore lease sale.--The term ``offshore lease sale'' 
        means an oil and gas lease sale--
                    (A) that is held by the Secretary in accordance with 
                the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et 
                seq.); and

[[Page 136 STAT. 2061]]

                    (B) that, if any acceptable bids have been received 
                for any tract offered in the lease sale, results in the 
                issuance of a lease.
            (3) Onshore lease sale.--The term ``onshore lease sale'' 
        means a quarterly oil and gas lease sale--
                    (A) that is held by the Secretary in accordance with 
                section 17 of the Mineral Leasing Act (30 U.S.C. 226); 
                and
                    (B) that, if any acceptable bids have been received 
                for any parcel offered in the lease sale, results in the 
                issuance of a lease.

    (b) Limitation on Issuance of Certain Leases or Rights-of-way.--
During the 10-year period <<NOTE: Time periods. Effective dates.>>  
beginning on the date of enactment of this Act--
            (1) the Secretary may not issue a right-of-way for wind or 
        solar energy development on Federal land unless--
                    (A) an onshore lease sale has been held during the 
                120-day period ending on the date of the issuance of the 
                right-of-way for wind or solar energy development; and
                    (B) the sum total of acres offered for lease in 
                onshore lease sales during the 1-year period ending on 
                the date of the issuance of the right-of-way for wind or 
                solar energy development is not less than the lesser 
                of--
                          (i) 2,000,000 acres; and
                          (ii) 50 percent of the acreage for which 
                      expressions of interest have been submitted for 
                      lease sales during that period; and
            (2) the Secretary may not issue a lease for offshore wind 
        development under section 8(p)(1)(C) of the Outer Continental 
        Shelf Lands Act (43 U.S.C. 1337(p)(1)(C)) unless--
                    (A) an offshore lease sale has been held during the 
                1-year period ending on the date of the issuance of the 
                lease for offshore wind development; and
                    (B) the sum total of acres offered for lease in 
                offshore lease sales during the 1-year period ending on 
                the date of the issuance of the lease for offshore wind 
                development is not less than 60,000,000 acres.

    (c) Savings.--Except as expressly provided in paragraphs (1) and (2) 
of subsection (b), nothing in this section supersedes, amends, or 
modifies existing law.

                 PART 7--UNITED STATES GEOLOGICAL SURVEY

SEC. 50271. UNITED STATES GEOLOGICAL SURVEY 3D ELEVATION PROGRAM.

    In addition to amounts otherwise available, there is appropriated to 
the Secretary, acting through the Director of the United States 
Geological Survey, for fiscal year 2022, out of any money in the 
Treasury not otherwise appropriated, $23,500,000, to remain available 
through September 30, 2031, to produce, collect, disseminate, and use 3D 
elevation data.

[[Page 136 STAT. 2062]]

                 PART 8--OTHER NATURAL RESOURCES MATTERS

SEC. 50281. DEPARTMENT OF THE INTERIOR OVERSIGHT.

    In addition to amounts otherwise available, there is appropriated to 
the Secretary for fiscal year 2022, out of any money in the Treasury not 
otherwise appropriated, $10,000,000, to remain available through 
September 30, 2031, for oversight by the Department of the Interior 
Office of Inspector General of the Department of the Interior activities 
for which funding is appropriated in this subtitle.

                    Subtitle C--Environmental Reviews

SEC. 50301. DEPARTMENT OF ENERGY.

    In addition to amounts otherwise available, there is appropriated to 
the Secretary of Energy for fiscal year 2022, out of any money in the 
Treasury not otherwise appropriated, $115,000,000, to remain available 
through September 30, 2031, to provide for the hiring and training of 
personnel, the development of programmatic environmental documents, the 
procurement of technical or scientific services for environmental 
reviews, the development of environmental data or information systems, 
stakeholder and community engagement, and the purchase of new equipment 
for environmental analysis to facilitate timely and efficient 
environmental reviews and authorizations.
SEC. 50302. FEDERAL ENERGY REGULATORY COMMISSION.

    (a) In General.--In addition to amounts otherwise available, there 
is appropriated to the Federal Energy Regulatory Commission for fiscal 
year 2022, out of any money in the Treasury not otherwise appropriated, 
$100,000,000, to remain available through September 30, 2031, to provide 
for the hiring and training of personnel, the development of 
programmatic environmental documents, the procurement of technical or 
scientific services for environmental reviews, the development of 
environmental data or information systems, stakeholder and community 
engagement, and the purchase of new equipment for environmental analysis 
to facilitate timely and efficient environmental reviews and 
authorizations.
    (b) Fees and Charges.--Section 3401(a) of the Omnibus Budget 
Reconciliation Act of 1986 (42 U.S.C. 7178(a)) shall not apply to the 
costs incurred by the Federal Energy Regulatory Commission in carrying 
out this section.
SEC. 50303. DEPARTMENT OF THE INTERIOR.

    In addition to amounts otherwise available, there is appropriated to 
the Secretary of the Interior for fiscal year 2022, out of any money in 
the Treasury not otherwise appropriated, $150,000,000, to remain 
available through September 30, 2026, to provide for the hiring and 
training of personnel, the development of programmatic environmental 
documents, the procurement of technical or scientific services for 
environmental reviews, the development of environmental data or 
information systems, stakeholder and community engagement, and the 
purchase of new equipment for environmental analysis to facilitate 
timely and efficient environmental reviews and authorizations by the 
National Park

[[Page 136 STAT. 2063]]

Service, the Bureau of Land Management, the Bureau of Ocean Energy 
Management, the Bureau of Reclamation, the Bureau of Safety and 
Environmental Enforcement, and the Office of Surface Mining Reclamation 
and Enforcement.

           TITLE VI--COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS

                        Subtitle A--Air Pollution

SEC. 60101. CLEAN HEAVY-DUTY VEHICLES.

    The Clean Air Act is amended by inserting after section 131 of such 
Act (42 U.S.C. 7431) the following:
``SEC. 132. <<NOTE: 42 USC 7432.>>  CLEAN HEAVY-DUTY VEHICLES.

    ``(a) Appropriations.--
            ``(1) In general.--In addition to amounts otherwise 
        available, there is appropriated to the Administrator for fiscal 
        year 2022, out of any money in the Treasury not otherwise 
        appropriated, $600,000,000, to remain available until September 
        30, 2031, to carry out this section.
            ``(2) Nonattainment areas.--In addition to amounts otherwise 
        available, there is appropriated to the Administrator for fiscal 
        year 2022, out of any money in the Treasury not otherwise 
        appropriated, $400,000,000, to remain available until September 
        30, 2031, to make awards under this section to eligible 
        recipients and to eligible contractors that propose to replace 
        eligible vehicles to serve 1 or more communities located in an 
        air quality area designated pursuant to section 107 as 
        nonattainment for any air pollutant.
            ``(3) Reservation.--Of the funds appropriated by paragraph 
        (1), the Administrator shall reserve 3 percent for 
        administrative costs necessary to carry out this section.

    ``(b) <<NOTE: Deadline. Grants. Rebates.>>  Program.--Beginning not 
later than 180 days after the date of enactment of this section, the 
Administrator shall implement a program to make awards of grants and 
rebates to eligible recipients, and to make awards of contracts to 
eligible contractors for providing rebates, for up to 100 percent of 
costs for--
            ``(1) <<NOTE: Determination.>>  the incremental costs of 
        replacing an eligible vehicle that is not a zero-emission 
        vehicle with a zero-emission vehicle, as determined by the 
        Administrator based on the market value of the vehicles;
            ``(2) purchasing, installing, operating, and maintaining 
        infrastructure needed to charge, fuel, or maintain zero-emission 
        vehicles;
            ``(3) workforce development and training to support the 
        maintenance, charging, fueling, and operation of zero-emission 
        vehicles; and
            ``(4) planning and technical activities to support the 
        adoption and deployment of zero-emission vehicles.

    ``(c) Applications.--To seek an award under this section, an 
eligible recipient or eligible contractor shall submit to the 
Administrator an application at such time, in such manner, and 
containing such information as the Administrator shall prescribe.
    ``(d) Definitions.--For purposes of this section:

[[Page 136 STAT. 2064]]

            ``(1) Eligible contractor.--The term `eligible contractor' 
        means a contractor that has the capacity--
                    ``(A) to sell, lease, license, or contract for 
                service zero-emission vehicles, or charging or other 
                equipment needed to charge, fuel, or maintain zero-
                emission vehicles, to individuals or entities that own, 
                lease, license, or contract for service an eligible 
                vehicle; or
                    ``(B) to arrange financing for such a sale, lease, 
                license, or contract for service.
            ``(2) Eligible recipient.--The term `eligible recipient' 
        means--
                    ``(A) a State;
                    ``(B) a municipality;
                    ``(C) an Indian tribe; or
                    ``(D) a nonprofit school transportation association.
            ``(3) Eligible vehicle.--The term `eligible vehicle' means a 
        Class 6 or Class 7 heavy-duty vehicle as defined in section 
        1037.801 of title 40, Code of Federal Regulations (as in effect 
        on the date of enactment of this section).
            ``(4) Greenhouse gas.--The term `greenhouse gas' means the 
        air pollutants carbon dioxide, hydrofluorocarbons, methane, 
        nitrous oxide, perfluorocarbons, and sulfur hexafluoride.
            ``(5) Zero-emission vehicle.--The term `zero-emission 
        vehicle' means a vehicle that has a drivetrain that produces, 
        under any possible operational mode or condition, zero exhaust 
        emissions of--
                    ``(A) any air pollutant that is listed pursuant to 
                section 108(a) (or any precursor to such an air 
                pollutant); and
                    ``(B) any greenhouse gas.''.
SEC. 60102. GRANTS TO REDUCE AIR POLLUTION AT PORTS.

    The Clean Air Act is amended by inserting after section 132 of such 
Act, as added by section 60101 of this Act, the following:
``SEC. 133. <<NOTE: 42 USC 7433.>>  GRANTS TO REDUCE AIR POLLUTION 
                        AT PORTS.

    ``(a) Appropriations.--
            ``(1) General assistance.--In addition to amounts otherwise 
        available, there is appropriated to the Administrator for fiscal 
        year 2022, out of any money in the Treasury not otherwise 
        appropriated, $2,250,000,000, to remain available until 
        September 30, 2027, to award rebates and grants to eligible 
        recipients on a competitive basis--
                    ``(A) to purchase or install zero-emission port 
                equipment or technology for use at, or to directly 
                serve, one or more ports;
                    ``(B) to conduct any relevant planning or permitting 
                in connection with the purchase or installation of such 
                zero-emission port equipment or technology; and
                    ``(C) to develop qualified climate action plans.
            ``(2) Nonattainment areas.--In addition to amounts otherwise 
        available, there is appropriated to the Administrator for fiscal 
        year 2022, out of any money in the Treasury not otherwise 
        appropriated, $750,000,000, to remain available until September 
        30, 2027, to award rebates and grants to eligible recipients to 
        carry out activities described in paragraph (1) with respect to 
        ports located in air quality areas designated pursuant to 
        section 107 as nonattainment for an air pollutant.

[[Page 136 STAT. 2065]]

    ``(b) Limitation.--Funds awarded under this section shall not be 
used by any recipient or subrecipient to purchase or install zero-
emission port equipment or technology that will not be located at, or 
directly serve, the one or more ports involved.
    ``(c) Administration of Funds.--Of the funds made available by this 
section, the Administrator shall reserve 2 percent for administrative 
costs necessary to carry out this section.
    ``(d) Definitions.--In this section:
            ``(1) Eligible recipient.--The term `eligible recipient' 
        means--
                    ``(A) a port authority;
                    ``(B) a State, regional, local, or Tribal agency 
                that has jurisdiction over a port authority or a port;
                    ``(C) an air pollution control agency; or
                    ``(D) a private entity that--
                          ``(i) applies for a grant under this section 
                      in partnership with an entity described in any of 
                      subparagraphs (A) through (C); and
                          ``(ii) owns, operates, or uses the facilities, 
                      cargo-handling equipment, transportation 
                      equipment, or related technology of a port.
            ``(2) Greenhouse gas.--The term `greenhouse gas' means the 
        air pollutants carbon dioxide, hydrofluorocarbons, methane, 
        nitrous oxide, perfluorocarbons, and sulfur hexafluoride.
            ``(3) Qualified climate action plan.--The term `qualified 
        climate action plan' means a detailed and strategic plan that--
                    ``(A) establishes goals, implementation strategies, 
                and accounting and inventory practices to reduce 
                emissions at one or more ports of--
                          ``(i) greenhouse gases;
                          ``(ii) an air pollutant that is listed 
                      pursuant to section 108(a) (or any precursor to 
                      such an air pollutant); and
                          ``(iii) hazardous air pollutants;
                    ``(B) includes a strategy to collaborate with, 
                communicate with, and address potential effects on low-
                income and disadvantaged near-port communities and other 
                stakeholders that may be affected by implementation of 
                the plan; and
                    ``(C) describes how an eligible recipient has 
                implemented or will implement measures to increase the 
                resilience of the one or more ports involved.
            ``(4) Zero-emission port equipment or technology.--The term 
        `zero-emission port equipment or technology' means human-
        operated equipment or human-maintained technology that--
                    ``(A) produces zero emissions of any air pollutant 
                that is listed pursuant to section 108(a) (or any 
                precursor to such an air pollutant) and any greenhouse 
                gas other than water vapor; or
                    ``(B) captures 100 percent of the emissions 
                described in subparagraph (A) that are produced by an 
                ocean-going vessel at berth.''.
SEC. 60103. GREENHOUSE GAS REDUCTION FUND.

    The Clean Air Act is amended by inserting after section 133 of such 
Act, as added by section 60102 of this Act, the following:

[[Page 136 STAT. 2066]]

``SEC. 134. <<NOTE: 42 USC 7434.>>  GREENHOUSE GAS REDUCTION FUND.

    ``(a) <<NOTE: Deadlines.>>  Appropriations.--
            ``(1) Zero-emission technologies.--In addition to amounts 
        otherwise available, there is appropriated to the Administrator 
        for fiscal year 2022, out of any money in the Treasury not 
        otherwise appropriated, $7,000,000,000, to remain available 
        until September 30, 2024, to make grants, on a competitive basis 
        and beginning not later than 180 calendar days after the date of 
        enactment of this section, to States, municipalities, Tribal 
        governments, and eligible recipients for the purposes of 
        providing grants, loans, or other forms of financial assistance, 
        as well as technical assistance, to enable low-income and 
        disadvantaged communities to deploy or benefit from zero-
        emission technologies, including distributed technologies on 
        residential rooftops, and to carry out other greenhouse gas 
        emission reduction activities, as determined appropriate by the 
        Administrator in accordance with this section.
            ``(2) General assistance.--In addition to amounts otherwise 
        available, there is appropriated to the Administrator for fiscal 
        year 2022, out of any money in the Treasury not otherwise 
        appropriated, $11,970,000,000, to remain available until 
        September 30, 2024, to make grants, on a competitive basis and 
        beginning not later than 180 calendar days after the date of 
        enactment of this section, to eligible recipients for the 
        purposes of providing financial assistance and technical 
        assistance in accordance with subsection (b).
            ``(3) Low-income and disadvantaged communities.--In addition 
        to amounts otherwise available, there is appropriated to the 
        Administrator for fiscal year 2022, out of any money in the 
        Treasury not otherwise appropriated, $8,000,000,000, to remain 
        available until September 30, 2024, to make grants, on a 
        competitive basis and beginning not later than 180 calendar days 
        after the date of enactment of this section, to eligible 
        recipients for the purposes of providing financial assistance 
        and technical assistance in low-income and disadvantaged 
        communities in accordance with subsection (b).
            ``(4) Administrative costs.--In addition to amounts 
        otherwise available, there is appropriated to the Administrator 
        for fiscal year 2022, out of any money in the Treasury not 
        otherwise appropriated, $30,000,000, to remain available until 
        September 30, 2031, for the administrative costs necessary to 
        carry out activities under this section.

    ``(b) Use of Funds.--An eligible recipient that receives a grant 
pursuant to subsection (a) shall use the grant in accordance with the 
following:
            ``(1) Direct investment.--The eligible recipient shall--
                    ``(A) provide financial assistance to qualified 
                projects at the national, regional, State, and local 
                levels;
                    ``(B) prioritize investment in qualified projects 
                that would otherwise lack access to financing; and
                    ``(C) retain, manage, recycle, and monetize all 
                repayments and other revenue received from fees, 
                interest, repaid loans, and all other types of financial 
                assistance provided using grant funds under this section 
                to ensure continued operability.
            ``(2) Indirect investment.--The eligible recipient shall 
        provide funding and technical assistance to establish new or

[[Page 136 STAT. 2067]]

        support existing public, quasi-public, not-for-profit, or 
        nonprofit entities that provide financial assistance to 
        qualified projects at the State, local, territorial, or Tribal 
        level or in the District of Columbia, including community- and 
        low-income-focused lenders and capital providers.

    ``(c) Definitions.--In this section:
            ``(1) Eligible recipient.--The term `eligible recipient' 
        means a nonprofit organization that--
                    ``(A) is designed to provide capital, leverage 
                private capital, and provide other forms of financial 
                assistance for the rapid deployment of low- and zero-
                emission products, technologies, and services;
                    ``(B) does not take deposits other than deposits 
                from repayments and other revenue received from 
                financial assistance provided using grant funds under 
                this section;
                    ``(C) is funded by public or charitable 
                contributions; and
                    ``(D) invests in or finances projects alone or in 
                conjunction with other investors.
            ``(2) Greenhouse gas.--The term `greenhouse gas' means the 
        air pollutants carbon dioxide, hydrofluorocarbons, methane, 
        nitrous oxide, perfluorocarbons, and sulfur hexafluoride.
            ``(3) Qualified project.--The term `qualified project' 
        includes any project, activity, or technology that--
                    ``(A) reduces or avoids greenhouse gas emissions and 
                other forms of air pollution in partnership with, and by 
                leveraging investment from, the private sector; or
                    ``(B) assists communities in the efforts of those 
                communities to reduce or avoid greenhouse gas emissions 
                and other forms of air pollution.
            ``(4) Zero-emission technology.--The term `zero-emission 
        technology' means any technology that produces zero emissions 
        of--
                    ``(A) any air pollutant that is listed pursuant to 
                section 108(a) (or any precursor to such an air 
                pollutant); and
                    ``(B) any greenhouse gas.''.
SEC. 60104. DIESEL EMISSIONS REDUCTIONS.

    (a) Goods Movement.--In addition to amounts otherwise available, 
there is appropriated to the Administrator of the Environmental 
Protection Agency for fiscal year 2022, out of any money in the Treasury 
not otherwise appropriated, $60,000,000, to remain available until 
September 30, 2031, for grants, rebates, and loans under section 792 of 
the Energy Policy Act of 2005 (42 U.S.C. 16132) to identify and reduce 
diesel emissions resulting from goods movement facilities, and vehicles 
servicing goods movement facilities, in low-income and disadvantaged 
communities to address the health impacts of such emissions on such 
communities.
    (b) Administrative Costs.--The Administrator of the Environmental 
Protection Agency shall reserve 2 percent of the amounts made available 
under this section for the administrative costs necessary to carry out 
activities pursuant to this section.
SEC. 60105. FUNDING TO ADDRESS AIR POLLUTION.

    (a) Fenceline Air Monitoring and Screening Air Monitoring.--In 
addition to amounts otherwise available, there is appropriated to the 
Administrator of the Environmental Protection Agency for fiscal year 
2022, out of any money in the Treasury

[[Page 136 STAT. 2068]]

not otherwise appropriated, $117,500,000, to remain available until 
September 30, 2031, for grants and other activities authorized under 
subsections (a) through (c) of section 103 and section 105 of the Clean 
Air Act (42 U.S.C. 7403(a)-(c), 7405) to deploy, integrate, support, and 
maintain fenceline air monitoring, screening air monitoring, national 
air toxics trend stations, and other air toxics and community 
monitoring.
    (b) Multipollutant Monitoring Stations.--In addition to amounts 
otherwise available, there is appropriated to the Administrator of the 
Environmental Protection Agency for fiscal year 2022, out of any money 
in the Treasury not otherwise appropriated, $50,000,000, to remain 
available until September 30, 2031, for grants and other activities 
authorized under subsections (a) through (c) of section 103 and section 
105 of the Clean Air Act (42 U.S.C. 7403(a)-(c), 7405)--
            (1) to expand the national ambient air quality monitoring 
        network with new multipollutant monitoring stations; and
            (2) to replace, repair, operate, and maintain existing 
        monitors.

    (c) Air Quality Sensors in Low-income and Disadvantaged 
Communities.--In addition to amounts otherwise available, there is 
appropriated to the Administrator of the Environmental Protection Agency 
for fiscal year 2022, out of any money in the Treasury not otherwise 
appropriated, $3,000,000, to remain available until September 30, 2031, 
for grants and other activities authorized under subsections (a) through 
(c) of section 103 and section 105 of the Clean Air Act (42 U.S.C. 
7403(a)-(c), 7405) to deploy, integrate, and operate air quality sensors 
in low-income and disadvantaged communities.
    (d) Emissions From Wood Heaters.--In addition to amounts otherwise 
available, there is appropriated to the Administrator of the 
Environmental Protection Agency for fiscal year 2022, out of any money 
in the Treasury not otherwise appropriated, $15,000,000, to remain 
available until September 30, 2031, for grants and other activities 
authorized under subsections (a) through (c) of section 103 and section 
105 of the Clean Air Act (42 U.S.C. 7403(a)-(c), 7405) for testing and 
other agency activities to address emissions from wood heaters.
    (e) Methane Monitoring.--In addition to amounts otherwise available, 
there is appropriated to the Administrator of the Environmental 
Protection Agency for fiscal year 2022, out of any money in the Treasury 
not otherwise appropriated, $20,000,000, to remain available until 
September 30, 2031, for grants and other activities authorized under 
subsections (a) through (c) of section 103 and section 105 of the Clean 
Air Act (42 U.S.C. 7403(a)-(c), 7405) for monitoring emissions of 
methane.
    (f) Clean Air Act Grants.--In addition to amounts otherwise 
available, there is appropriated to the Administrator of the 
Environmental Protection Agency for fiscal year 2022, out of any money 
in the Treasury not otherwise appropriated, $25,000,000, to remain 
available until September 30, 2031, for grants and other activities 
authorized under subsections (a) through (c) of section 103 and section 
105 of the Clean Air Act (42 U.S.C. 7403(a)-(c), 7405).
    (g) Greenhouse Gas and Zero-emission Standards for Mobile Sources.--
In addition to amounts otherwise available, there is appropriated to the 
Administrator of the Environmental Protection Agency for fiscal year 
2022, out of any money in the

[[Page 136 STAT. 2069]]

Treasury not otherwise appropriated, $5,000,000, to remain available 
until September 30, 2031, to provide grants to States to adopt and 
implement greenhouse gas and zero-emission standards for mobile sources 
pursuant to section 177 of the Clean Air Act (42 U.S.C. 7507).
    (h) Definition of Greenhouse Gas.--In this section, the term 
``greenhouse gas'' means the air pollutants carbon dioxide, 
hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and sulfur 
hexafluoride.
SEC. 60106. FUNDING TO ADDRESS AIR POLLUTION AT SCHOOLS.

    (a) In General.--In addition to amounts otherwise available, there 
is appropriated to the Administrator of the Environmental Protection 
Agency for fiscal year 2022, out of any money in the Treasury not 
otherwise appropriated, $37,500,000, to remain available until September 
30, 2031, for grants and other activities to monitor and reduce 
greenhouse gas emissions and other air pollutants at schools in low-
income and disadvantaged communities under subsections (a) through (c) 
of section 103 of the Clean Air Act (42 U.S.C. 7403(a)-(c)) and section 
105 of that Act (42 U.S.C. 7405).
    (b) Technical Assistance.--In addition to amounts otherwise 
available, there is appropriated to the Administrator of the 
Environmental Protection Agency for fiscal year 2022, out of any money 
in the Treasury not otherwise appropriated, $12,500,000, to remain 
available until September 30, 2031, for providing technical assistance 
to schools in low-income and disadvantaged communities under subsections 
(a) through (c) of section 103 of the Clean Air Act (42 U.S.C. 7403(a)-
(c)) and section 105 of that Act (42 U.S.C. 7405)--
            (1) to address environmental issues;
            (2) to develop school environmental quality plans that 
        include standards for school building, design, construction, and 
        renovation; and
            (3) to identify and mitigate ongoing air pollution hazards.

    (c) Definition of Greenhouse Gas.--In this section, the term 
``greenhouse gas'' means the air pollutants carbon dioxide, 
hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and sulfur 
hexafluoride.
SEC. 60107. LOW EMISSIONS ELECTRICITY PROGRAM.

    The Clean Air Act is amended by inserting after section 134 of such 
Act, as added by section 60103 of this Act, the following:
``SEC. 135. <<NOTE: 42 USC 7435.>>  LOW EMISSIONS ELECTRICITY 
                        PROGRAM.

    ``(a) Appropriation.--In addition to amounts otherwise available, 
there is appropriated to the Administrator for fiscal year 2022, out of 
any money in the Treasury not otherwise appropriated, to remain 
available until September 30, 2031--
            ``(1) $17,000,000 for consumer-related education and 
        partnerships with respect to reductions in greenhouse gas 
        emissions that result from domestic electricity generation and 
        use;
            ``(2) $17,000,000 for education, technical assistance, and 
        partnerships within low-income and disadvantaged communities 
        with respect to reductions in greenhouse gas emissions that 
        result from domestic electricity generation and use;
            ``(3) $17,000,000 for industry-related outreach, technical 
        assistance, and partnerships with respect to reductions in

[[Page 136 STAT. 2070]]

        greenhouse gas emissions that result from domestic electricity 
        generation and use;
            ``(4) $17,000,000 for outreach and technical assistance to, 
        and partnerships with, State, Tribal, and local governments with 
        respect to reductions in greenhouse gas emissions that result 
        from domestic electricity generation and use;
            ``(5) <<NOTE: Assessment. Deadline.>>  $1,000,000 to assess, 
        not later than 1 year after the date of enactment of this 
        section, the reductions in greenhouse gas emissions that result 
        from changes in domestic electricity generation and use that are 
        anticipated to occur on an annual basis through fiscal year 
        2031; and
            ``(6) $18,000,000 to ensure that reductions in greenhouse 
        gas emissions are achieved through use of the existing 
        authorities of this Act, incorporating the assessment under 
        paragraph (5).

    ``(b) Administration of Funds.--Of the amounts made available under 
subsection (a), the Administrator shall reserve 2 percent for the 
administrative costs necessary to carry out activities pursuant to that 
subsection.
    ``(c) Definition of Greenhouse Gas.--In this section, the term 
`greenhouse gas' means the air pollutants carbon dioxide, 
hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and sulfur 
hexafluoride.''.
SEC. 60108. FUNDING FOR SECTION 211(O) OF THE CLEAN AIR ACT.

    (a) Test and Protocol Development.--In addition to amounts otherwise 
available, there is appropriated to the Administrator of the 
Environmental Protection Agency for fiscal year 2022, out of any money 
in the Treasury not otherwise appropriated, $5,000,000, to remain 
available until September 30, 2031, to carry out section 211(o) of the 
Clean Air Act (42 U.S.C. 7545(o)) with respect to--
            (1) the development and establishment of tests and protocols 
        regarding the environmental and public health effects of a fuel 
        or fuel additive;
            (2) internal and extramural data collection and analyses to 
        regularly update applicable regulations, guidance, and 
        procedures for determining lifecycle greenhouse gas emissions of 
        a fuel; and
            (3) the review, analysis, and evaluation of the impacts of 
        all transportation fuels, including fuel lifecycle implications, 
        on the general public and on low-income and disadvantaged 
        communities.

    (b) Investments in Advanced Biofuels.--In addition to amounts 
otherwise available, there is appropriated to the Administrator of the 
Environmental Protection Agency for fiscal year 2022, out of any money 
in the Treasury not otherwise appropriated, $10,000,000, to remain 
available until September 30, 2031, for new grants to industry and other 
related activities under section 211(o) of the Clean Air Act (42 U.S.C. 
7545(o)) to support investments in advanced biofuels.
    (c) Definition of Greenhouse Gas.--In this section, the term 
``greenhouse gas'' means the air pollutants carbon dioxide, 
hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and sulfur 
hexafluoride.

[[Page 136 STAT. 2071]]

SEC. 60109. FUNDING FOR IMPLEMENTATION OF THE AMERICAN INNOVATION 
                            AND MANUFACTURING ACT.

    (a) Appropriations.--
            (1) In general.--In addition to amounts otherwise available, 
        there is appropriated to the Administrator of the Environmental 
        Protection Agency for fiscal year 2022, out of any money in the 
        Treasury not otherwise appropriated, $20,000,000, to remain 
        available until September 30, 2026, to carry out subsections (a) 
        through (i) and subsection (k) of section 103 of division S of 
        Public Law 116-260 (42 U.S.C. 7675).
            (2) Implementation and compliance tools.--In addition to 
        amounts otherwise available, there is appropriated to the 
        Administrator of the Environmental Protection Agency for fiscal 
        year 2022, out of any money in the Treasury not otherwise 
        appropriated, $3,500,000, to remain available until September 
        30, 2026, to deploy new implementation and compliance tools to 
        carry out subsections (a) through (i) and subsection (k) of 
        section 103 of division S of Public Law 116-260 (42 U.S.C. 
        7675).
            (3) Competitive grants.--In addition to amounts otherwise 
        available, there is appropriated to the Administrator of the 
        Environmental Protection Agency for fiscal year 2022, out of any 
        money in the Treasury not otherwise appropriated, $15,000,000, 
        to remain available until September 30, 2026, for competitive 
        grants for reclaim and innovative destruction technologies under 
        subsections (a) through (i) and subsection (k) of section 103 of 
        division S of Public Law 116-260 (42 U.S.C. 7675).

    (b) Administration of Funds.--Of the funds made available pursuant 
to subsection (a)(3), the Administrator of the Environmental Protection 
Agency shall reserve 5 percent for administrative costs necessary to 
carry out activities pursuant to such subsection.
SEC. 60110. FUNDING FOR ENFORCEMENT TECHNOLOGY AND PUBLIC 
                            INFORMATION.

    (a) Compliance Monitoring.--In addition to amounts otherwise 
available, there is appropriated to the Administrator of the 
Environmental Protection Agency for fiscal year 2022, out of any money 
in the Treasury not otherwise appropriated, $18,000,000, to remain 
available until September 30, 2031, to update the Integrated Compliance 
Information System of the Environmental Protection Agency and any 
associated systems, necessary information technology infrastructure, or 
public access software tools to ensure access to compliance data and 
related information.
    (b) Communications With ICIS.--In addition to amounts otherwise 
available, there is appropriated to the Administrator of the 
Environmental Protection Agency for fiscal year 2022, out of any money 
in the Treasury not otherwise appropriated, $3,000,000, to remain 
available until September 30, 2031, for grants to States, Indian tribes, 
and air pollution control agencies (as such terms are defined in section 
302 of the Clean Air Act (42 U.S.C. 7602)) to update their systems to 
ensure communication with the Integrated Compliance Information System 
of the Environmental Protection Agency and any associated systems.
    (c) Inspection Software.--In addition to amounts otherwise 
available, there is appropriated to the Administrator of the 
Environmental Protection Agency for fiscal year 2022, out of any money

[[Page 136 STAT. 2072]]

in the Treasury not otherwise appropriated, $4,000,000, to remain 
available until September 30, 2031--
            (1) to acquire or update inspection software for use by the 
        Environmental Protection Agency, States, Indian tribes, and air 
        pollution control agencies (as such terms are defined in section 
        302 of the Clean Air Act (42 U.S.C. 7602)); or
            (2) to acquire necessary devices on which to run such 
        inspection software.
SEC. 60111. GREENHOUSE GAS CORPORATE REPORTING.

    (a) In General.--In addition to amounts otherwise available, there 
is appropriated to the Administrator of the Environmental Protection 
Agency for fiscal year 2022, out of any money in the Treasury not 
otherwise appropriated, $5,000,000, to remain available until September 
30, 2031, for the Environmental Protection Agency to support--
            (1) enhanced standardization and transparency of corporate 
        climate action commitments and plans to reduce greenhouse gas 
        emissions;
            (2) enhanced transparency regarding progress toward meeting 
        such commitments and implementing such plans; and
            (3) progress toward meeting such commitments and 
        implementing such plans.

    (b) Definition of Greenhouse Gas.--In this section, the term 
``greenhouse gas'' means the air pollutants carbon dioxide, 
hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and sulfur 
hexafluoride.
SEC. 60112. <<NOTE: 42 USC 4321 note.>>  ENVIRONMENTAL PRODUCT 
                            DECLARATION ASSISTANCE.

    (a) In General.--In addition to amounts otherwise available, there 
is appropriated to the Administrator of the Environmental Protection 
Agency for fiscal year 2022, out of any money in the Treasury not 
otherwise appropriated, $250,000,000, to remain available until 
September 30, 2031, to develop and carry out a program to support the 
development, enhanced standardization and transparency, and reporting 
criteria for environmental product declarations that include 
measurements of the embodied greenhouse gas emissions of the material or 
product associated with all relevant stages of production, use, and 
disposal, and conform with international standards, for construction 
materials and products by--
            (1) providing grants to businesses that manufacture 
        construction materials and products for developing and verifying 
        environmental product declarations, and to States, Indian 
        Tribes, and nonprofit organizations that will support such 
        businesses;
            (2) providing technical assistance to businesses that 
        manufacture construction materials and products in developing 
        and verifying environmental product declarations, and to States, 
        Indian Tribes, and nonprofit organizations that will support 
        such businesses; and
            (3) carrying out other activities that assist in measuring, 
        reporting, and steadily reducing the quantity of embodied carbon 
        of construction materials and products.

    (b) Administrative Costs.--Of the amounts made available under this 
section, the Administrator of the Environmental Protection Agency shall 
reserve 5 percent for administrative costs necessary to carry out this 
section.
    (c) Definitions.--In this section:

[[Page 136 STAT. 2073]]

            (1) Greenhouse gas.--The term ``greenhouse gas'' means the 
        air pollutants carbon dioxide, hydrofluorocarbons, methane, 
        nitrous oxide, perfluorocarbons, and sulfur hexafluoride.
            (2) State.--The term ``State'' has the meaning given to that 
        term in section 302(d) of the Clean Air Act (42 U.S.C. 7602(d)).
SEC. 60113. METHANE EMISSIONS REDUCTION PROGRAM.

    The Clean Air Act is amended by inserting after section 135 of such 
Act, as added by section 60107 of this Act, the following:
``SEC. 136. <<NOTE: 42 USC 7436.>>  METHANE EMISSIONS AND WASTE 
                        REDUCTION INCENTIVE PROGRAM FOR PETROLEUM 
                        AND NATURAL GAS SYSTEMS.

    ``(a) Incentives for Methane Mitigation and Monitoring.--In addition 
to amounts otherwise available, there is appropriated to the 
Administrator for fiscal year 2022, out of any money in the Treasury not 
otherwise appropriated, $850,000,000, to remain available until 
September 30, 2028--
            ``(1) for grants, rebates, contracts, loans, and other 
        activities of the Environmental Protection Agency for the 
        purposes of providing financial and technical assistance to 
        owners and operators of applicable facilities to prepare and 
        submit greenhouse gas reports under subpart W of part 98 of 
        title 40, Code of Federal Regulations;
            ``(2) for grants, rebates, contracts, loans, and other 
        activities of the Environmental Protection Agency authorized 
        under subsections (a) through (c) of section 103 for methane 
        emissions monitoring;
            ``(3) for grants, rebates, contracts, loans, and other 
        activities of the Environmental Protection Agency for the 
        purposes of providing financial and technical assistance to 
        reduce methane and other greenhouse gas emissions from petroleum 
        and natural gas systems, mitigate legacy air pollution from 
        petroleum and natural gas systems, and provide funding for--
                    ``(A) improving climate resiliency of communities 
                and petroleum and natural gas systems;
                    ``(B) improving and deploying industrial equipment 
                and processes that reduce methane and other greenhouse 
                gas emissions and waste;
                    ``(C) supporting innovation in reducing methane and 
                other greenhouse gas emissions and waste from petroleum 
                and natural gas systems;
                    ``(D) permanently shutting in and plugging wells on 
                non-Federal land;
                    ``(E) mitigating health effects of methane and other 
                greenhouse gas emissions, and legacy air pollution from 
                petroleum and natural gas systems in low-income and 
                disadvantaged communities; and
                    ``(F) supporting environmental restoration; and
            ``(4) to cover all direct and indirect costs required to 
        administer this section, prepare inventories, gather empirical 
        data, and track emissions.

    ``(b) Incentives for Methane Mitigation From Conventional Wells.--In 
addition to amounts otherwise available, there is appropriated to the 
Administrator for fiscal year 2022, out of any money in the Treasury not 
otherwise appropriated, $700,000,000, to remain available until 
September 30, 2028, for

[[Page 136 STAT. 2074]]

activities described in paragraphs (1) through (4) of subsection (a) at 
marginal conventional wells.
    ``(c) Waste Emissions Charge.--The Administrator shall impose and 
collect a charge on methane emissions that exceed an applicable waste 
emissions threshold under subsection (f) from an owner or operator of an 
applicable facility that reports more than 25,000 metric tons of carbon 
dioxide equivalent of greenhouse gases emitted per year pursuant to 
subpart W of part 98 of title 40, Code of Federal Regulations, 
regardless of the reporting threshold under that subpart.
    ``(d) <<NOTE: Definition.>>  Applicable Facility.--For purposes of 
this section, the term `applicable facility' means a facility within the 
following industry segments, as defined in subpart W of part 98 of title 
40, Code of Federal Regulations:
            ``(1) Offshore petroleum and natural gas production.
            ``(2) Onshore petroleum and natural gas production.
            ``(3) Onshore natural gas processing.
            ``(4) Onshore natural gas transmission compression.
            ``(5) Underground natural gas storage.
            ``(6) Liquefied natural gas storage.
            ``(7) Liquefied natural gas import and export equipment.
            ``(8) Onshore petroleum and natural gas gathering and 
        boosting.
            ``(9) Onshore natural gas transmission pipeline.

    ``(e) <<NOTE: Time periods.>>  Charge Amount.--The amount of a 
charge under subsection (c) for an applicable facility shall be equal to 
the product obtained by multiplying--
            ``(1) the number of metric tons of methane emissions 
        reported pursuant to subpart W of part 98 of title 40, Code of 
        Federal Regulations, for the applicable facility that exceed the 
        applicable annual waste emissions threshold listed in subsection 
        (f) during the previous reporting period; and
            ``(2)(A) $900 for emissions reported for calendar year 2024;
            ``(B) $1,200 for emissions reported for calendar year 2025; 
        or
            ``(C) $1,500 for emissions reported for calendar year 2026 
        and each year thereafter.

    ``(f) <<NOTE: Fees.>>  Waste Emissions Threshold.--
            ``(1) Petroleum and natural gas production.--With respect to 
        imposing and collecting the charge under subsection (c) for an 
        applicable facility in an industry segment listed in paragraph 
        (1) or (2) of subsection (d), the Administrator shall impose and 
        collect the charge on the reported metric tons of methane 
        emissions from such facility that exceed--
                    ``(A) 0.20 percent of the natural gas sent to sale 
                from such facility; or
                    ``(B) 10 metric tons of methane per million barrels 
                of oil sent to sale from such facility, if such facility 
                sent no natural gas to sale.
            ``(2) Nonproduction petroleum and natural gas systems.--With 
        respect to imposing and collecting the charge under subsection 
        (c) for an applicable facility in an industry segment listed in 
        paragraph (3), (6), (7), or (8) of subsection (d), the 
        Administrator shall impose and collect the charge on the 
        reported metric tons of methane emissions that exceed 0.05 
        percent of the natural gas sent to sale from or through such 
        facility.

[[Page 136 STAT. 2075]]

            ``(3) Natural gas transmission.--With respect to imposing 
        and collecting the charge under subsection (c) for an applicable 
        facility in an industry segment listed in paragraph (4), (5), or 
        (9) of subsection (d), the Administrator shall impose and 
        collect the charge on the reported metric tons of methane 
        emissions that exceed 0.11 percent of the natural gas sent to 
        sale from or through such facility.
            ``(4) Common ownership or control.--In calculating the total 
        emissions charge obligation for facilities under common 
        ownership or control, the Administrator shall allow for the 
        netting of emissions by reducing the total obligation to account 
        for facility emissions levels that are below the applicable 
        thresholds within and across all applicable segments identified 
        in subsection (d).
            ``(5) <<NOTE: Determination.>>  Exemption.--Charges shall 
        not be imposed pursuant to paragraph (1) on emissions that 
        exceed the waste emissions threshold specified in such paragraph 
        if such emissions are caused by unreasonable delay, as 
        determined by the Administrator, in environmental permitting of 
        gathering or transmission infrastructure necessary for offtake 
        of increased volume as a result of methane emissions mitigation 
        implementation.
            ``(6) <<NOTE: Determination.>>  Exemption for regulatory 
        compliance.--
                    ``(A) In general.--Charges shall not be imposed 
                pursuant to subsection (c) on an applicable facility 
                that is subject to and in compliance with methane 
                emissions requirements pursuant to subsections (b) and 
                (d) of section 111 upon a determination by the 
                Administrator that--
                          ``(i) methane emissions standards and plans 
                      pursuant to subsections (b) and (d) of section 111 
                      have been approved and are in effect in all States 
                      with respect to the applicable facilities; and
                          ``(ii) compliance with the requirements 
                      described in clause (i) will result in equivalent 
                      or greater emissions reductions as would be 
                      achieved by the proposed rule of the Administrator 
                      entitled `Standards of Performance for New, 
                      Reconstructed, and Modified Sources and Emissions 
                      Guidelines for Existing Sources: Oil and Natural 
                      Gas Sector Climate Review' (86 Fed. Reg. 63110 
                      (November 15, 2021)), if such rule had been 
                      finalized and implemented.
                    ``(B) <<NOTE: Time period.>>  Resumption of 
                charge.--If the conditions in clause (i) or (ii) of 
                subparagraph (A) cease to apply after the Administrator 
                has made the determination in that subparagraph, the 
                applicable facility will again be subject to the charge 
                under subsection (c) beginning in the first calendar 
                year in which the conditions in either clause (i) or 
                (ii) of that subparagraph are no longer met.
            ``(7) <<NOTE: Determination.>>  Plugged wells.--Charges 
        shall not be imposed with respect to the emissions rate from any 
        well that has been permanently shut-in and plugged in the 
        previous year in accordance with all applicable closure 
        requirements, as determined by the Administrator.

    ``(g) Period.--The charge under subsection (c) shall be imposed and 
collected beginning with respect to emissions reported for calendar year 
2024 and for each year thereafter.

[[Page 136 STAT. 2076]]

    ``(h) Reporting.--Not later than 2 years after the date of enactment 
of this section, the Administrator shall revise the requirements of 
subpart W of part 98 of title 40, Code of Federal Regulations, to ensure 
the reporting under such subpart, and calculation of charges under 
subsections (e) and (f) of this section, are based on empirical data, 
including data collected pursuant to subsection (a)(4), accurately 
reflect the total methane emissions and waste emissions from the 
applicable facilities, and allow owners and operators of applicable 
facilities to submit empirical emissions data, in a manner to be 
prescribed by the Administrator, to demonstrate the extent to which a 
charge under subsection (c) is owed.
    ``(i) Definition of Greenhouse Gas.--In this section, the term 
`greenhouse gas' means the air pollutants carbon dioxide, 
hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and sulfur 
hexafluoride.''.
SEC. 60114. CLIMATE POLLUTION REDUCTION GRANTS.

    The Clean Air Act is amended by inserting after section 136 of such 
Act, as added by section 60113 of this Act, the following:
``SEC. 137. <<NOTE: 42 USC 7437.>>  GREENHOUSE GAS AIR POLLUTION 
                        PLANS AND IMPLEMENTATION GRANTS.

    ``(a) Appropriations.--
            ``(1) Greenhouse gas air pollution planning grants.--In 
        addition to amounts otherwise available, there is appropriated 
        to the Administrator for fiscal year 2022, out of any amounts in 
        the Treasury not otherwise appropriated, $250,000,000, to remain 
        available until September 30, 2031, to carry out subsection (b).
            ``(2) Greenhouse gas air pollution implementation grants.--
        In addition to amounts otherwise available, there is 
        appropriated to the Administrator for fiscal year 2022, out of 
        any amounts in the Treasury not otherwise appropriated, 
        $4,750,000,000, to remain available until September 30, 2026, to 
        carry out subsection (c).
            ``(3) Administrative costs.--Of the funds made available 
        under paragraph (2), the Administrator shall reserve 3 percent 
        for administrative costs necessary to carry out this section, to 
        provide technical assistance to eligible entities, to develop a 
        plan that could be used as a model by grantees in developing a 
        plan under subsection (b), and to model the effects of plans 
        described in this section.

    ``(b) Greenhouse Gas Air Pollution Planning Grants.--The 
Administrator shall make a grant to at least one eligible entity in each 
State for the costs of developing a plan for the reduction of greenhouse 
gas air pollution to be submitted with an application for a grant under 
subsection (c). Each such plan shall include programs, policies, 
measures, and projects that will achieve or facilitate the reduction of 
greenhouse gas air pollution. Not later than 270 
days <<NOTE: Deadline. Publication.>>  after the date of enactment of 
this section, the Administrator shall publish a funding opportunity 
announcement for grants under this subsection.

    ``(c) Greenhouse Gas Air Pollution Reduction Implementation 
Grants.--
            ``(1) In general.--The Administrator shall competitively 
        award grants to eligible entities to implement plans developed 
        under subsection (b).

[[Page 136 STAT. 2077]]

            ``(2) Application.--To apply for a grant under this 
        subsection, an eligible entity shall submit to the Administrator 
        an application at such time, in such manner, and containing such 
        information as the Administrator shall require, which such 
        application shall include information regarding the degree to 
        which greenhouse gas air pollution is projected to be reduced in 
        total and with respect to low-income and disadvantaged 
        communities.
            ``(3) <<NOTE: Determination.>>  Terms and conditions.--The 
        Administrator shall make funds available to a grantee under this 
        subsection in such amounts, upon such a schedule, and subject to 
        such conditions based on its performance in implementing its 
        plan submitted under this section and in achieving projected 
        greenhouse gas air pollution reduction, as determined by the 
        Administrator.

    ``(d) Definitions.--In this section:
            ``(1) Eligible entity.--The term `eligible entity' means--
                    ``(A) a State;
                    ``(B) an air pollution control agency;
                    ``(C) a municipality;
                    ``(D) an Indian tribe; and
                    ``(E) a group of one or more entities listed in 
                subparagraphs (A) through (D).
            ``(2) Greenhouse gas.--The term `greenhouse gas' means the 
        air pollutants carbon dioxide, hydrofluorocarbons, methane, 
        nitrous oxide, perfluorocarbons, and sulfur hexafluoride.''.
SEC. 60115. ENVIRONMENTAL PROTECTION AGENCY EFFICIENT, ACCURATE, 
                            AND TIMELY REVIEWS.

     In addition to amounts otherwise available, there is appropriated 
to the Environmental Protection Agency for fiscal year 2022, out of any 
money in the Treasury not otherwise appropriated, $40,000,000, to remain 
available until September 30, 2026, to provide for the development of 
efficient, accurate, and timely reviews for permitting and approval 
processes through the hiring and training of personnel, the development 
of programmatic documents, the procurement of technical or scientific 
services for reviews, the development of environmental data or 
information systems, stakeholder and community engagement, the purchase 
of new equipment for environmental analysis, and the development of 
geographic information systems and other analysis tools, techniques, and 
guidance to improve agency transparency, accountability, and public 
engagement.
SEC. 60116. <<NOTE: 42 USC 4321 note.>>  LOW-EMBODIED CARBON 
                            LABELING FOR CONSTRUCTION MATERIALS.

    (a) <<NOTE: Consultation.>>  In General.--In addition to amounts 
otherwise available, there is appropriated to the Administrator of the 
Environmental Protection Agency for fiscal year 2022, out of any money 
in the Treasury not otherwise appropriated, $100,000,000, to remain 
available until September 30, 2026, for necessary administrative costs 
of the Administrator of the Environmental Protection Agency to carry out 
this section and to develop and carry out a program, in consultation 
with the Administrator of the Federal Highway Administration for 
construction materials used in transportation projects and the 
Administrator of General Services for construction materials used for 
Federal buildings, to identify and label construction materials and 
products that have substantially lower levels of embodied greenhouse gas 
emissions associated with all relevant

[[Page 136 STAT. 2078]]

stages of production, use, and disposal, as compared to estimated 
industry averages of similar materials or products, as determined by the 
Administrator of the Environmental Protection Agency, based on--
            (1) environmental product declarations; or
            (2) <<NOTE: Determinations.>>  determinations by State 
        agencies, as verified by the Administrator of the Environmental 
        Protection Agency.

    (b) Definition of Greenhouse Gas.--In this section, the term 
``greenhouse gas'' means the air pollutants carbon dioxide, 
hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and sulfur 
hexafluoride.

                     Subtitle B--Hazardous Materials

SEC. 60201. ENVIRONMENTAL AND CLIMATE JUSTICE BLOCK GRANTS.

    The Clean Air Act is amended by inserting after section 137, as 
added by subtitle A of this title, the following:
``SEC. 138. <<NOTE: 42 USC 7438.>>  ENVIRONMENTAL AND CLIMATE 
                        JUSTICE BLOCK GRANTS.

    ``(a) Appropriation.--In addition to amounts otherwise available, 
there is appropriated to the Administrator for fiscal year 2022, out of 
any money in the Treasury not otherwise appropriated--
            ``(1) $2,800,000,000 to remain available until September 30, 
        2026, to award grants for the activities described in subsection 
        (b); and
            ``(2) $200,000,000 to remain available until September 30, 
        2026, to provide technical assistance to eligible entities 
        related to grants awarded under this section.

    ``(b) Grants.--
            ``(1) In general.--The Administrator shall use amounts made 
        available under subsection (a)(1) to award grants for periods of 
        up to 3 years to eligible entities to carry out activities 
        described in paragraph (2) that benefit disadvantaged 
        communities, as defined by the Administrator.
            ``(2) Eligible activities.--An eligible entity may use a 
        grant awarded under this subsection for--
                    ``(A) community-led air and other pollution 
                monitoring, prevention, and remediation, and investments 
                in low- and zero-emission and resilient technologies and 
                related infrastructure and workforce development that 
                help reduce greenhouse gas emissions and other air 
                pollutants;
                    ``(B) mitigating climate and health risks from urban 
                heat islands, extreme heat, wood heater emissions, and 
                wildfire events;
                    ``(C) climate resiliency and adaptation;
                    ``(D) reducing indoor toxics and indoor air 
                pollution; or
                    ``(E) facilitating engagement of disadvantaged 
                communities in State and Federal advisory groups, 
                workshops, rulemakings, and other public processes.
            ``(3) <<NOTE: Definition.>>  Eligible entities.--In this 
        subsection, the term `eligible entity' means--
                    ``(A) a partnership between--
                          ``(i) an Indian tribe, a local government, or 
                      an institution of higher education; and

[[Page 136 STAT. 2079]]

                          ``(ii) a community-based nonprofit 
                      organization;
                    ``(B) a community-based nonprofit organization; or
                    ``(C) a partnership of community-based nonprofit 
                organizations.

    ``(c) Administrative Costs.--The Administrator shall reserve 7 
percent of the amounts made available under subsection (a) for 
administrative costs to carry out this section.
    ``(d) Definition of Greenhouse Gas.--In this section, the term 
`greenhouse gas' means the air pollutants carbon dioxide, 
hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and sulfur 
hexafluoride.''.

           Subtitle C--United States Fish and Wildlife Service

SEC. 60301. ENDANGERED SPECIES ACT RECOVERY PLANS.

    In addition to amounts otherwise available, there is appropriated to 
the United States Fish and Wildlife Service for fiscal year 2022, out of 
any money in the Treasury not otherwise appropriated, $125,000,000, to 
remain available until expended, for the purposes of developing and 
implementing recovery plans under paragraphs (1), (3), and (4) of 
subsection (f) of section 4 of the Endangered Species Act of 1973 (16 
U.S.C. 1533(f)).
SEC. 60302. FUNDING FOR THE UNITED STATES FISH AND WILDLIFE 
                            SERVICE TO ADDRESS WEATHER EVENTS.

    (a) In General.--In addition to amounts otherwise available, there 
is appropriated to the United States Fish and Wildlife Service for 
fiscal year 2022, out of any money in the Treasury not otherwise 
appropriated, $121,250,000, to remain available until September 30, 
2026, to make direct expenditures, award grants, and enter into 
contracts and cooperative agreements for the purposes of rebuilding and 
restoring units of the National Wildlife Refuge System and State 
wildlife management areas by--
            (1) addressing the threat of invasive species;
            (2) increasing the resiliency and capacity of habitats and 
        infrastructure to withstand weather events; and
            (3) reducing the amount of damage caused by weather events.

    (b) Administrative Costs.--In addition to amounts otherwise 
available, there is appropriated to the United States Fish and Wildlife 
Service for fiscal year 2022, out of any money in the Treasury not 
otherwise appropriated, $3,750,000, to remain available until September 
30, 2026, for necessary administrative expenses associated with carrying 
out this section.

              Subtitle D--Council on Environmental Quality

SEC. 60401. ENVIRONMENTAL AND CLIMATE DATA COLLECTION.

    In addition to amounts otherwise available, there is appropriated to 
the Chair of the Council on Environmental Quality for fiscal year 2022, 
out of any money in the Treasury not otherwise

[[Page 136 STAT. 2080]]

appropriated, $32,500,000, to remain available until September 30, 
2026--
            (1) to support data collection efforts relating to--
                    (A) disproportionate negative environmental harms 
                and climate impacts; and
                    (B) cumulative impacts of pollution and temperature 
                rise;
            (2) to establish, expand, and maintain efforts to track 
        disproportionate burdens and cumulative impacts and provide 
        academic and workforce support for analytics and informatics 
        infrastructure and data collection systems; and
            (3) to support efforts to ensure that any mapping or 
        screening tool is accessible to community-based organizations 
        and community members.
SEC. 60402. COUNCIL ON ENVIRONMENTAL QUALITY EFFICIENT AND 
                            EFFECTIVE ENVIRONMENTAL REVIEWS.

    In addition to amounts otherwise available, there is appropriated to 
the Chair of the Council on Environmental Quality for fiscal year 2022, 
out of any money in the Treasury not otherwise appropriated, 
$30,000,000, to remain available until September 30, 2026, to carry out 
the Council on Environmental Quality's functions and for the purposes of 
training personnel, developing programmatic environmental documents, and 
developing tools, guidance, and techniques to improve stakeholder and 
community engagement.

              Subtitle E--Transportation and Infrastructure

SEC. 60501. NEIGHBORHOOD ACCESS AND EQUITY GRANT PROGRAM.

    (a) In General.--Chapter 1 of title 23, United States Code, is 
amended by adding at the end the following:
``Sec. 177. <<NOTE: 23 USC 177.>>  Neighborhood access and equity 
                grant program

    ``(a) In General.--In addition to amounts otherwise available, there 
is appropriated for fiscal year 2022, out of any money in the Treasury 
not otherwise appropriated, $1,893,000,000, to remain available until 
September 30, 2026, to the Administrator of the Federal Highway 
Administration for competitive grants to eligible entities described in 
subsection (b)--
            ``(1) to improve walkability, safety, and affordable 
        transportation access through projects that are context-
        sensitive--
                    ``(A) to remove, remediate, or reuse a facility 
                described in subsection (c)(1);
                    ``(B) to replace a facility described in subsection 
                (c)(1) with a facility that is at-grade or lower speed;
                    ``(C) to retrofit or cap a facility described in 
                subsection (c)(1);
                    ``(D) to build or improve complete streets, multiuse 
                trails, regional greenways, or active transportation 
                networks and spines; or
                    ``(E) to provide affordable access to essential 
                destinations, public spaces, or transportation links and 
                hubs;
            ``(2) to mitigate or remediate negative impacts on the human 
        or natural environment resulting from a facility

[[Page 136 STAT. 2081]]

        described in subsection (c)(2) in a disadvantaged or underserved 
        community through--
                    ``(A) noise barriers to reduce impacts resulting 
                from a facility described in subsection (c)(2);
                    ``(B) technologies, infrastructure, and activities 
                to reduce surface transportation-related greenhouse gas 
                emissions and other air pollution;
                    ``(C) natural infrastructure, pervious, permeable, 
                or porous pavement, or protective features to reduce or 
                manage stormwater run-off resulting from a facility 
                described in subsection (c)(2);
                    ``(D) infrastructure and natural features to reduce 
                or mitigate urban heat island hot spots in the 
                transportation right-of-way or on surface transportation 
                facilities; or
                    ``(E) safety improvements for vulnerable road users; 
                and
            ``(3) for planning and capacity building activities in 
        disadvantaged or underserved communities to--
                    ``(A) <<NOTE: Assessment.>>  identify, monitor, or 
                assess local and ambient air quality, emissions of 
                transportation greenhouse gases, hot spot areas of 
                extreme heat or elevated air pollution, gaps in tree 
                canopy coverage, or flood prone transportation 
                infrastructure;
                    ``(B) <<NOTE: Assessment.>>  assess transportation 
                equity or pollution impacts and develop local anti-
                displacement policies and community benefit agreements;
                    ``(C) conduct predevelopment activities for projects 
                eligible under this subsection;
                    ``(D) expand public participation in transportation 
                planning by individuals and organizations in 
                disadvantaged or underserved communities; or
                    ``(E) administer or obtain technical assistance 
                related to activities described in this subsection.

    ``(b) Eligible Entities Described.--An eligible entity referred to 
in subsection (a) is--
            ``(1) a State;
            ``(2) a unit of local government;
            ``(3) a political subdivision of a State;
            ``(4) an entity described in section 207(m)(1)(E);
            ``(5) a territory of the United States;
            ``(6) a special purpose district or public authority with a 
        transportation function;
            ``(7) a metropolitan planning organization (as defined in 
        section 134(b)(2)); or
            ``(8) with respect to a grant described in subsection 
        (a)(3), in addition to an eligible entity described in 
        paragraphs (1) through (7), a nonprofit organization or 
        institution of higher education that has entered into a 
        partnership with an eligible entity described in paragraphs (1) 
        through (7).

    ``(c) Facility Described.--A facility referred to in subsection (a) 
is--
            ``(1) a surface transportation facility for which high 
        speeds, grade separation, or other design factors create an 
        obstacle to connectivity within a community; or
            ``(2) a surface transportation facility which is a source of 
        air pollution, noise, stormwater, or other burden to a 
        disadvantaged or underserved community.

[[Page 136 STAT. 2082]]

    ``(d) Investment in Economically Disadvantaged Communities.--
            ``(1) In general.--In addition to amounts otherwise 
        available, there is appropriated for fiscal year 2022, out of 
        any money in the Treasury not otherwise appropriated, 
        $1,262,000,000, to remain available until September 30, 2026, to 
        the Administrator of the Federal Highway Administration to 
        provide grants for projects in communities described in 
        paragraph (2) for the same purposes and administered in the same 
        manner as described in subsection (a).
            ``(2) Communities described.--A community referred to in 
        paragraph (1) is a community that--
                    ``(A) is economically disadvantaged, underserved, or 
                located in an area of persistent poverty;
                    ``(B) has entered or will enter into a community 
                benefits agreement with representatives of the 
                community;
                    ``(C) has an anti-displacement policy, a community 
                land trust, or a community advisory board in effect; or
                    ``(D) has demonstrated a plan for employing local 
                residents in the area impacted by the activity or 
                project proposed under this section.

    ``(e) Administration.--
            ``(1) In general.--A project carried out under subsection 
        (a) or (d) shall be treated as a project on a Federal-aid 
        highway.
            ``(2) Compliance with existing requirements.--Funds made 
        available for a grant under this section and administered by or 
        through a State department of transportation shall be expended 
        in compliance with the U.S. Department of Transportation's 
        Disadvantaged Business Enterprise Program.

    ``(f) Cost Share.--The Federal share of the cost of an activity 
carried out using a grant awarded under this section shall be not more 
than 80 percent, except that the Federal share of the cost of a project 
in a disadvantaged or underserved community may be up to 100 percent.
    ``(g) Technical Assistance.--In addition to amounts otherwise 
available, there is appropriated for fiscal year 2022, out of any money 
in the Treasury not otherwise appropriated, $50,000,000, to remain 
available until September 30, 2026, to the Administrator of the Federal 
Highway Administration for--
            ``(1) guidance, technical assistance, templates, training, 
        or tools to facilitate efficient and effective contracting, 
        design, and project delivery by units of local government;
            ``(2) subgrants to units of local government to build 
        capacity of such units of local government to assume 
        responsibilities to deliver surface transportation projects; and
            ``(3) operations and administration of the Federal Highway 
        Administration.

    ``(h) Limitations.--Amounts made available under this section shall 
not--
            ``(1) be subject to any restriction or limitation on the 
        total amount of funds available for implementation or execution 
        of programs authorized for Federal-aid highways; and
            ``(2) be used for a project for additional through travel 
        lanes for single-occupant passenger vehicles.''.

[[Page 136 STAT. 2083]]

    (b) Clerical Amendment.--The analysis for chapter 1 of title 23, 
United States Code, <<NOTE: 23 USC 101 prec.>>  is amended by adding at 
the end the following:

``177. Neighborhood access and equity grant program.''.

SEC. 60502. ASSISTANCE FOR FEDERAL BUILDINGS.

    In addition to amounts otherwise available, there is appropriated 
for fiscal year 2022, out of any money in the Treasury not otherwise 
appropriated, $250,000,000, to remain available until September 30, 
2031, to be deposited in the Federal Buildings Fund established under 
section 592 of title 40, United States Code, for measures necessary to 
convert facilities of the Administrator of General Services to high-
performance green buildings (as defined in section 401 of the Energy 
Independence and Security Act of 2007 (42 U.S.C. 17061)).
SEC. 60503. USE OF LOW-CARBON MATERIALS.

    (a) <<NOTE: Determination.>>  Appropriation.--In addition to amounts 
otherwise available, there is appropriated for fiscal year 2022, out of 
any money in the Treasury not otherwise appropriated, $2,150,000,000, to 
remain available until September 30, 2026, to be deposited in the 
Federal Buildings Fund established under section 592 of title 40, United 
States Code, to acquire and install materials and products for use in 
the construction or alteration of buildings under the jurisdiction, 
custody, and control of the General Services Administration that have 
substantially lower levels of embodied greenhouse gas emissions 
associated with all relevant stages of production, use, and disposal as 
compared to estimated industry averages of similar materials or 
products, as determined by the Administrator of the Environmental 
Protection Agency.

    (b) Definition of Greenhouse Gas.--In this section, the term 
``greenhouse gas'' means the air pollutants carbon dioxide, 
hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and sulfur 
hexafluoride.
SEC. 60504. GENERAL SERVICES ADMINISTRATION EMERGING TECHNOLOGIES.

    In addition to amounts otherwise available, there is appropriated to 
the Administrator of General Services for fiscal year 2022, out of any 
money in the Treasury not otherwise appropriated, $975,000,000, to 
remain available until September 30, 2026, to be deposited in the 
Federal Buildings Fund established under section 592 of title 40, United 
States Code, for emerging and sustainable technologies, and related 
sustainability and environmental programs.
SEC. 60505. ENVIRONMENTAL REVIEW IMPLEMENTATION FUNDS.

    (a) In General.--Chapter 1 of title 23, United States Code, is 
further amended by adding at the end the following:
``Sec. 178. <<NOTE: 23 USC 178.>>  Environmental review 
                implementation funds

    ``(a) Establishment.--In addition to amounts otherwise available, 
for fiscal year 2022, there is appropriated to the Administrator, out of 
any money in the Treasury not otherwise appropriated, $100,000,000, to 
remain available until September 30, 2026, for the purpose of 
facilitating the development and review of documents for the 
environmental review process for proposed projects through--

[[Page 136 STAT. 2084]]

            ``(1) the provision of guidance, technical assistance, 
        templates, training, or tools to facilitate an efficient and 
        effective environmental review process for surface 
        transportation projects and any administrative expenses of the 
        Federal Highway Administration to conduct activities described 
        in this section; and
            ``(2) providing funds made available under this subsection 
        to eligible entities--
                    ``(A) to build capacity of such eligible entities to 
                conduct environmental review processes;
                    ``(B) to facilitate the environmental review process 
                for proposed projects by--
                          ``(i) defining the scope or study areas;
                          ``(ii) identifying impacts, mitigation 
                      measures, and reasonable alternatives;
                          ``(iii) preparing planning and environmental 
                      studies and other documents prior to and during 
                      the environmental review process, for potential 
                      use in the environmental review process in 
                      accordance with applicable statutes and 
                      regulations;
                          ``(iv) conducting public engagement 
                      activities; and
                          ``(v) carrying out permitting or other 
                      activities, as the Administrator determines to be 
                      appropriate, to support the timely completion of 
                      an environmental review process required for a 
                      proposed project; and
                    ``(C) for administrative expenses of the eligible 
                entity to conduct any of the activities described in 
                subparagraphs (A) and (B).

    ``(b) Cost Share.--
            ``(1) In general.--The Federal share of the cost of an 
        activity carried out under this section by an eligible entity 
        shall be not more than 80 percent.
            ``(2) Source of funds.--The non-Federal share of the cost of 
        an activity carried out under this section by an eligible entity 
        may be satisfied using funds made available to the eligible 
        entity under any other Federal, State, or local grant program.

    ``(c) Definitions.--In this section:
            ``(1) Administrator.--The term `Administrator' means the 
        Administrator of the Federal Highway Administration.
            ``(2) Eligible entity.--The term `eligible entity' means--
                    ``(A) a State;
                    ``(B) a unit of local government;
                    ``(C) a political subdivision of a State;
                    ``(D) a territory of the United States;
                    ``(E) an entity described in section 207(m)(1)(E);
                    ``(F) a recipient of funds under section 203; or
                    ``(G) a metropolitan planning organization (as 
                defined in section 134(b)(2)).
            ``(3) Environmental review process.--The term `environmental 
        review process' has the meaning given the term in section 
        139(a)(5).
            ``(4) Proposed project.--The term `proposed project' means a 
        surface transportation project for which an environmental review 
        process is required.''.

[[Page 136 STAT. 2085]]

    (b) Clerical Amendment.--The analysis for chapter 1 of title 23, 
United States Code, <<NOTE: 23 USC 101 prec.>>  is further amended by 
adding at the end the following:

``178. Environmental review implementation funds.''.

SEC. 60506. LOW-CARBON TRANSPORTATION MATERIALS GRANTS.

    (a) In General.--Chapter 1 of title 23, United States Code, is 
further amended by adding at the end the following:
``Sec. 179. <<NOTE: 23 USC 179.>>  Low-carbon transportation 
                materials grants

    ``(a) Federal Highway Administration Appropriation.--In addition to 
amounts otherwise available, there is appropriated for fiscal year 2022, 
out of any money in the Treasury not otherwise appropriated, 
$2,000,000,000, to remain available until September 30, 2026, to the 
Administrator to reimburse or provide incentives to eligible recipients 
for the use, in projects, of construction materials and products that 
have substantially lower levels of embodied greenhouse gas emissions 
associated with all relevant stages of production, use, and disposal as 
compared to estimated industry averages of similar materials or 
products, as determined by the Administrator of the Environmental 
Protection Agency, and for the operations and administration of the 
Federal Highway Administration to carry out this section.
    ``(b) Reimbursement of Incremental Costs; Incentives.--
            ``(1) In general.--The Administrator shall, subject to the 
        availability of funds, either reimburse or provide incentives to 
        eligible recipients that use low-embodied carbon construction 
        materials and products on a project funded under this title.
            ``(2) Reimbursement and incentive amounts.--
                    ``(A) <<NOTE: Determination. Verification.>>  
                Incremental amount.--The amount of reimbursement under 
                paragraph (1) shall be equal to the incrementally higher 
                cost of using such materials relative to the cost of 
                using traditional materials, as determined by the 
                eligible recipient and verified by the Administrator.
                    ``(B) Incentive amount.--The amount of an incentive 
                under paragraph (1) shall be equal to 2 percent of the 
                cost of using low-embodied carbon construction materials 
                and products on a project funded under this title.
            ``(3) Federal share.--If a reimbursement or incentive is 
        provided under paragraph (1), the total Federal share payable 
        for the project for which the reimbursement or incentive is 
        provided shall be up to 100 percent.
            ``(4) Limitations.--
                    ``(A) In general.--The Administrator shall only 
                provide a reimbursement or incentive under paragraph (1) 
                for a project on a--
                          ``(i) Federal-aid highway;
                          ``(ii) tribal transportation facility;
                          ``(iii) Federal lands transportation facility; 
                      or
                          ``(iv) Federal lands access transportation 
                      facility.
                    ``(B) Other restrictions.--Amounts made available 
                under this section shall not be subject to any 
                restriction or limitation on the total amount of funds 
                available for implementation or execution of programs 
                authorized for Federal-aid highways.
                    ``(C) Single occupant passenger vehicles.--Funds 
                made available under this section shall not be used for

[[Page 136 STAT. 2086]]

                projects that result in additional through travel lanes 
                for single occupant passenger vehicles.
            ``(5) <<NOTE: Review.>>  Materials identification.--The 
        Administrator shall review the low-embodied carbon construction 
        materials and products identified by the Administrator of the 
        Environmental Protection Agency and shall identify low-embodied 
        carbon construction materials and products--
                    ``(A) appropriate for use in projects eligible under 
                this title; and
                    ``(B) eligible for reimbursement or incentives under 
                this section.

    ``(c) Definitions.--In this section:
            ``(1) Administrator.--The term `Administrator' means the 
        Administrator of the Federal Highway Administration.
            ``(2) Eligible recipient.--The term `eligible recipient' 
        means--
                    ``(A) a State;
                    ``(B) a unit of local government;
                    ``(C) a political subdivision of a State;
                    ``(D) a territory of the United States;
                    ``(E) an entity described in section 207(m)(1)(E);
                    ``(F) a recipient of funds under section 203;
                    ``(G) a metropolitan planning organization (as 
                defined in section 134(b)(2)); or
                    ``(H) a special purpose district or public authority 
                with a transportation function.
            ``(3) Greenhouse gas.--The term `greenhouse gas' means the 
        air pollutants carbon dioxide, hydrofluorocarbons, methane, 
        nitrous oxide, perfluorocarbons, and sulfur hexafluoride.''.

    (b) Clerical Amendment.--The analysis for chapter 1 of title 23, 
United States Code, <<NOTE: 23 USC 101 prec.>>  is further amended by 
adding at the end the following:

``179. Low-carbon transportation materials grants.''.

   TITLE VII--COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

SEC. 70001. DHS OFFICE OF CHIEF READINESS SUPPORT OFFICER.

    In addition to the amounts otherwise available, there is 
appropriated to the Secretary of Homeland Security for fiscal year 2022, 
out of any money in the Treasury not otherwise appropriated, 
$500,000,000, to remain available until September 30, 2028, for the 
Office of the Chief Readiness Support Officer to carry out 
sustainability and environmental programs.
SEC. 70002. UNITED STATES POSTAL SERVICE CLEAN FLEETS.

    In addition to amounts otherwise available, there is appropriated to 
the United States Postal Service for fiscal year 2022, out of any money 
in the Treasury not otherwise appropriated, the following amounts, to be 
deposited into the Postal Service Fund established under section 2003 of 
title 39, United States Code:
            (1) $1,290,000,000, to remain available through September 
        30, 2031, for the purchase of zero-emission delivery vehicles.

[[Page 136 STAT. 2087]]

            (2) $1,710,000,000, to remain available through September 
        30, 2031, for the purchase, design, and installation of the 
        requisite infrastructure to support zero-emission delivery 
        vehicles at facilities that the United States Postal Service 
        owns or leases from non-Federal entities.
SEC. 70003. UNITED STATES POSTAL SERVICE OFFICE OF INSPECTOR 
                            GENERAL.

    In addition to amounts otherwise available, there is appropriated to 
the Office of Inspector General of the United States Postal Service for 
fiscal year 2022, out of any money in the Treasury not otherwise 
appropriated, $15,000,000, to remain available through September 30, 
2031, to support oversight of United States Postal Service activities 
implemented pursuant to this Act.
SEC. 70004. GOVERNMENT ACCOUNTABILITY OFFICE OVERSIGHT.

    In addition to amounts otherwise available, there is appropriated to 
the Comptroller General of the United States for fiscal year 2022, out 
of any money in the Treasury not otherwise appropriated, $25,000,000, to 
remain available until September 30, 2031, for necessary expenses of the 
Government Accountability Office to support the oversight of--
            (1) the distribution and use of funds appropriated under 
        this Act; and
            (2) whether the economic, social, and environmental impacts 
        of the funds described in paragraph (1) are equitable.
SEC. 70005. OFFICE OF MANAGEMENT AND BUDGET OVERSIGHT.

    In addition to amounts otherwise available, there are appropriated 
to the Director of the Office of Management and Budget for fiscal year 
2022, out of any money in the Treasury not otherwise appropriated, 
$25,000,000, to remain available until September 30, 2026, for necessary 
expenses to--
            (1) oversee the implementation of this Act; and
            (2) track labor, equity, and environmental standards and 
        performance.
SEC. 70006. FEMA BUILDING MATERIALS PROGRAM.

    Through September 30, 2026, <<NOTE: Time period.>>  the 
Administrator of the Federal Emergency Management Agency may provide 
financial assistance under sections 203(h), 404(a), and 406(b) of the 
Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 
U.S.C. 5133(h), 42 U.S.C. 5170c(a), 42 U.S.C. 5172(b)) for--
            (1) costs associated with low-carbon materials; and
            (2) incentives that encourage low-carbon and net-zero energy 
        projects.
SEC. 70007. FEDERAL PERMITTING IMPROVEMENT STEERING COUNCIL 
                            ENVIRONMENTAL REVIEW IMPROVEMENT FUND 
                            MANDATORY FUNDING.

    In addition to amounts otherwise available, there is appropriated to 
the Federal Permitting Improvement Steering Council Environmental Review 
Improvement Fund, out of any money in the Treasury not otherwise 
appropriated, $350,000,000 for fiscal year 2023, to remain available 
through September 30, 2031.

[[Page 136 STAT. 2088]]

                 TITLE VIII--COMMITTEE ON INDIAN AFFAIRS

SEC. 80001. TRIBAL CLIMATE RESILIENCE.

    (a) Tribal Climate Resilience and Adaptation.--In addition to 
amounts otherwise available, there is appropriated to the Director of 
the Bureau of Indian Affairs for fiscal year 2022, out of any money in 
the Treasury not otherwise appropriated, $220,000,000, to remain 
available until September 30, 2031, for Tribal climate resilience and 
adaptation programs.
    (b) Bureau of Indian Affairs Fish Hatcheries.--In addition to 
amounts otherwise available, there is appropriated to the Director of 
the Bureau of Indian Affairs for fiscal year 2022, out of any money in 
the Treasury not otherwise appropriated, $10,000,000, to remain 
available until September 30, 2031, for fish hatchery operations and 
maintenance programs of the Bureau of Indian Affairs.
    (c) Administration.--In addition to amounts otherwise available, 
there is appropriated to the Director of the Bureau of Indian Affairs 
for fiscal year 2022, out of any money in the Treasury not otherwise 
appropriated, $5,000,000, to remain available until September 30, 2031, 
for the administrative costs of carrying out this section.
    (d) Cost-sharing and Matching Requirements.--None of the funds 
provided by this section shall be subject to cost-sharing or matching 
requirements.
    (e) Small and Needy Program.--Amounts made available under this 
section shall be excluded from the calculation of funds received by 
those Tribal governments that participate in the ``Small and Needy'' 
program.
    (f) Distribution; Use of Funds.--Amounts made available under this 
section that are distributed to Indian Tribes and Tribal organizations 
for services pursuant to a self-determination contract (as defined in 
subsection (j) of section 4 of the Indian Self-Determination and 
Education Assistance Act (25 U.S.C. 5304(j))) or a self-governance 
compact entered into pursuant to subsection (a) of section 404 of the 
Indian Self-Determination and Education Assistance Act (25 U.S.C. 
5364(a))--
            (1) shall be distributed on a 1-time basis;
            (2) shall not be part of the amount required by subsections 
        (a) through (b) of section 106 of the Indian Self-Determination 
        and Education Assistance Act (25 U.S.C. 5325(a)-(b)); and
            (3) shall only be used for the purposes identified under the 
        applicable subsection.
SEC. 80002. NATIVE HAWAIIAN CLIMATE RESILIENCE.

    (a) Native Hawaiian Climate Resilience and Adaptation.--In addition 
to amounts otherwise available, there is appropriated to the Senior 
Program Director of the Office of Native Hawaiian Relations for fiscal 
year 2022, out of any money in the Treasury not otherwise appropriated, 
$23,500,000, to remain available until September 30, 2031, to carry out, 
through financial assistance, technical assistance, direct expenditure, 
grants, contracts, or cooperative agreements, climate resilience and 
adaptation activities that serve the Native Hawaiian Community.

[[Page 136 STAT. 2089]]

    (b) Administration.--In addition to amounts otherwise available, 
there is appropriated to the Senior Program Director of the Office of 
Native Hawaiian Relations for fiscal year 2022, out of any money in the 
Treasury not otherwise appropriated, $1,500,000, to remain available 
until September 30, 2031, for the administrative costs of carrying out 
this section.
    (c) Cost-sharing and Matching Requirements.--None of the funds 
provided by this section shall be subject to cost-sharing or matching 
requirements.
SEC. 80003. TRIBAL ELECTRIFICATION PROGRAM.

    (a) Tribal Electrification Program.--In addition to amounts 
otherwise available, there is appropriated to the Director of the Bureau 
of Indian Affairs for fiscal year 2022, out of any money in the Treasury 
not otherwise appropriated, $145,500,000, to remain available until 
September 30, 2031, for--
            (1) the provision of electricity to unelectrified Tribal 
        homes through zero-emissions energy systems;
            (2) transitioning electrified Tribal homes to zero-emissions 
        energy systems; and
            (3) associated home repairs and retrofitting necessary to 
        install the zero-emissions energy systems authorized under 
        paragraphs (1) and (2).

    (b) Administration.--In addition to amounts otherwise available, 
there is appropriated to the Director of the Bureau of Indian Affairs 
for fiscal year 2022, out of any money in the Treasury not otherwise 
appropriated, $4,500,000, to remain available until September 30, 2031, 
for the administrative costs of carrying out this section.
    (c) Cost-sharing and Matching Requirements.--None of the funds 
provided by this section shall be subject to cost-sharing or matching 
requirements.
    (d) Small and Needy Program.--Amounts made available under this 
section shall be excluded from the calculation of funds received by 
those Tribal governments that participate in the ``Small and Needy'' 
program.
    (e) Distribution; Use of Funds.--Amounts made available under this 
section that are distributed to Indian Tribes and Tribal organizations 
for services pursuant to a self-determination contract (as defined in 
subsection (j) of section 4 of the Indian Self-Determination and 
Education Assistance Act (25 U.S.C. 5304(j))) or a self-governance 
compact entered into pursuant to subsection (a) of section 404 of the 
Indian Self-Determination and Education Assistance Act (25 U.S.C. 
5364(a))--
            (1) shall be distributed on a 1-time basis;
            (2) shall not be part of the amount required by subsections 
        (a) through (b) of section 106 of the Indian Self-Determination 
        and Education Assistance Act (25 U.S.C. 5325(a)-(b)); and
            (3) shall only be used for the purposes identified under the 
        applicable subsection.
SEC. 80004. EMERGENCY DROUGHT RELIEF FOR TRIBES.

    (a) Emergency Drought Relief for Tribes.--In addition to amounts 
otherwise available, there is appropriated to the Commissioner of the 
Bureau of Reclamation for fiscal year 2022, out of any money in the 
Treasury not otherwise appropriated, $12,500,000, to remain available 
until September 30, 2026, for near-term drought relief actions to 
mitigate drought impacts for Indian Tribes that

[[Page 136 STAT. 2090]]

are impacted by the operation of a Bureau of Reclamation water project, 
including through direct financial assistance to address drinking water 
shortages and to mitigate the loss of Tribal trust resources.
    (b) Cost-sharing and Matching Requirements.--None of the funds 
provided by this section shall be subject to cost-sharing or matching 
requirements.

    Approved August 16, 2022.

LEGISLATIVE HISTORY--H.R. 5376:
---------------------------------------------------------------------------

HOUSE REPORTS: No. 117-130 (Comm. on the Budget).
CONGRESSIONAL RECORD:
                                                        Vol. 167 (2021):
                                    Nov. 18, 19, considered and passed 
                                        House.
                                                        Vol. 168 (2022):
                                    Aug. 6, considered and passed 
                                        Senate, amended.
                                    Aug. 12, House concurred in Senate 
                                        amendment.
DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2022):
            Aug. 16, Presidential remarks.

                                  <all>