Earth Act of 2022
Bill: H.R.9678 | Sponsor: Rep. Espaillat, Adriano (D-NY)
Policy area: Energy

Summary:
Earth Act of 2022
This bill addresses climate change by establishing requirements concerning renewable energy, zero emission vehicles, regenerative agriculture, and tax incentives related to climate transition costs. Specifically, the bill requires that by 2030, 100% of
The Department of Energy (DOE), the Department of Transportation, and the Department of Agriculture (USDA) must create grants to pay up to 50% of the costs of meeting those requirements.
DOE must also issue regulations regarding the sourcing, recycling, and disposal of materials used to manufacture renewable energy sources (e.g., equipment that stores renewable energy). The goals of the regulations must be to (1) eliminate the use of rare earth metals in the manufacture of those sources, and (2) ensure the recycling of all such materials.
USDA must issue regulations that (1) require the reduction of greenhouse gas emissions resulting from certain land or livestock corporations, and (2) ensure the well-being of animals raised for human consumption or the production of dairy products.
The bill also provides tax incentives for electric suppliers, vehicle manufacturers, and such corporations to meet the requirements established by this bill by allowing them to double certain tax deductions for qualified capital climate transitions costs.

To ensure 100 percent renewable electricity, zero emission vehicles, 
 and regenerative agriculture by 2030 to address global warming caused 
                           by human activity.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Earth Act of 2022''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Global climate change is an immediate threat to the 
        national security, public health, and national economy of the 
        United States as well as the legacy we will leave to our 
        children.
            (2) The most vulnerable communities, including communities 
        of color, women, children, the elderly, persons with 
        disabilities, low-income communities, and those with underlying 
        health conditions, face even greater health risks as a result 
        of climate change.
            (3) The United States is already seeing climate change 
        exacerbate extreme weather events, with--
                    (A) the year 2020 seeing the most active Atlantic 
                hurricane season on record with 30 named storms and six 
                major hurricanes;
                    (B) the 2019 issuance of the first-ever Extreme Red 
                Flag Warning for wildfires;
                    (C) hundreds of thousands of acres in the Western 
                United States currently or recently experiencing 
                devastating wildfires; and
                    (D) communities around the country regularly facing 
                ``100-Year Floods''.
            (4) The United Nations Intergovernmental Panel on Climate 
        Change 2016 Special Report on Climate Change and Land found 
        that sustainable land management can contribute to reducing the 
        negative impacts of multiple stressors, including climate 
        change.
            (5) The Environmental Protection Agency found that 
        electricity, transportation, and agriculture accounted for more 
        than 60 percent of greenhouse gas emissions in 2019.
            (6) The National Centers for Environmental Information 
        found that, in 2021, there were 20 weather and climate disaster 
        events with losses exceeding $1,000,000,000 each to affect the 
        United States. These events resulted in the deaths of 688 
        people and had significant economic effects on the areas 
        impacted. The 1980-2021 annual average is 7.4 events.
            (7) The total cost of United States billion-dollar 
        disasters over the years 2016 through 2020 exceeds 
        $600,000,000,000, with a 5-year annual cost average of 
        $121,300,000,000.
            (8) The IPCC released its Working Group I, 2021 report, 
        which found that, unless immediate and broad reductions in 
        greenhouse gas emissions are made by the international 
        community, it will be impossible to limit global warming to 2 
        degrees Celsius, the warming level which the scientific 
        community believes will precipitate catastrophic climate-
        related consequences and risks to human health, livelihoods, 
        food security, human security, water supply, and economic 
        growth will all increase.
            (9) In 2021, Secretary of Energy Jennifer Granholm, 
        expressed that, by 2030, the clean energy sector will be a 
        $230,000,000,000,000 global market for all technologies and 
        products that reduce carbon pollution, spurring economic 
        opportunity through job creation for people across the United 
        States and the world.
            (10) According to the Environmental Protection Agency, 
        renewable energy reduces greenhouse gas emissions and air 
        pollution associated with energy production.
            (11) The 2021 Department of Defense Climate Risk Analysis 
        found that increasing temperatures, changing precipitation 
        patterns, and more frequent, intense, and unpredictable extreme 
        weather conditions caused by climate change are exacerbating 
        existing security risks.
            (12) In 2021, the Office of the Director of National 
        Intelligence assessed that climate change will increasingly 
        exacerbate risks to United States national security interests.
            (13) In 2021, the President issued an Executive order 
        directing the Federal Government to achieve 100 percent carbon 
        pollution-free electricity on a net annual basis by 2030 and 
        100 percent zero-emission vehicle acquisitions by 2035.
            (14) In 2021, United Nations Secretary-General Antonio 
        Guterres, described the urgency of addressing climate change by 
        stating that ``the alarm bells are deafening, and the evidence 
        is irrefutable: greenhouse gas emissions from fossil fuel 
        burning and deforestation are choking our planet and putting 
        billions of people at immediate risk. Global heating is 
        affecting every region on Earth, with many of the changes 
        becoming irreversible''.
            (15) The Sixth Assessment Report of the IPCC found that 
        ``human-induced climate change, including more frequent and 
        intense extreme events, has caused widespread adverse impacts 
        and related losses and damages to nature and people, beyond 
        natural climate variability''.
            (16) The IPCC notes that to avoid mounting loss of life, 
        biodiversity, and infrastructure, we must have ambitious, 
        accelerated action to adapt to climate change, while also 
        making rapid, deep cuts in greenhouse gas emissions.

SEC. 3. RENEWABLE ENERGY.

    (a) Renewable Energy Standard.--
            (1) Minimum annual percentage.--The minimum annual 
        percentage of the total quantity of electricity sold by a 
        retail electric supplier that is required to be generated from 
        renewable energy resources shall be--
                    (A) in each of 2027, 2028, and 2029, at least 80 
                percent; and
                    (B) in 2030, and in each year thereafter, 100 
                percent.
            (2) Regulations.--Not later than 180 days after the date of 
        enactment of this subsection, the Secretary of Energy shall 
        issue regulations to carry out this subsection.
            (3) Required submissions.--The regulations issued under 
        paragraph (2) shall require a retail electric supplier to 
        submit to the Secretary of Energy, the Administrator of the 
        Environmental Protection Agency, and the Secretary of 
        Transportation--
                    (A) not later than one year after the date of 
                enactment of this subsection, and annually thereafter, 
                a plan to achieve compliance with such regulations; and
                    (B) beginning in 2028, and annually thereafter, by 
                April 15, a report on compliance with this subsection 
                for the preceding year, including evidentiary 
                documentation regarding such compliance.
            (4) Grants for transition assistance.--
                    (A) In general.--Subject to the availability of 
                appropriations, the Secretary of Energy shall make 
                competitive grants to retail electric suppliers to pay 
                up to 50 percent of the costs of meeting the 
                requirements under this subsection.
                    (B) Priority.--In awarding grants under this 
                paragraph, the Secretary of Energy shall give priority 
                to retail electric suppliers who display significant 
                need, as determined by the Secretary, to finance their 
                transition to renewable energy.
                    (C) Application.--To be eligible to receive a grant 
                under this paragraph, a retail electric supplier shall 
                submit to the Secretary of Energy an application at 
                such time, in such manner, and containing such 
                information as the Secretary may require.
            (5) Best practices report.--Not later than 180 days after 
        the date of the enactment of this subsection, the Secretary of 
        Energy shall develop and publish, including on the public 
        website of the Department of Energy, a report on the best 
        practices for retail electric suppliers for activities to 
        transition to renewable energy consistent with this subsection, 
        including how to apply for a grant under this subsection.
    (b) Renewable Energy Sources.--
            (1) Regulations.--Not later than 180 days after the date of 
        enactment of this subsection, the Secretary of Energy shall 
        issue regulations regarding the sourcing, recycling, and 
        disposal of materials used to manufacture renewable energy 
        sources, with goals of--
                    (A) eliminating the use of rare earth metals in the 
                manufacture of renewable energy sources; and
                    (B) ensuring the recycling of all such materials.
            (2) Required submissions.--Not later than one year after 
        the date of enactment of this subsection, the regulations 
        issued under paragraph (1) shall require entities subject to 
        such regulations to submit to the Secretary of Energy 
        documentation on compliance with such regulations, as the 
        Secretary of Energy determines appropriate, including 
        documentation regarding lifecycle greenhouse gas emissions with 
        respect to the business operations of such entities.
    (c) Definitions.--In this section:
            (1) Renewable energy.--The term ``renewable energy'' means 
        electric energy generated from a renewable energy resource.
            (2) Renewable energy resource.--The term ``renewable energy 
        resource'' means wind, solar, geothermal, tidal, wave, and 
        existing hydropower sources.
            (3) Renewable energy source.--The term ``renewable energy 
        source'' means any facility or equipment, including any 
        component thereof, used to generate or store renewable energy.
            (4) Retail electric supplier.--The term ``retail electric 
        supplier'' means an entity operating in the United States or in 
        a territory of the United States that sold not less than 1,000 
        megawatt hours to electric consumers for purposes other than 
        resale during the preceding calendar year.

SEC. 4. ZERO EMISSION VEHICLES.

    (a) In General.--Part A of title II of the Clean Air Act (42 U.S.C. 
7521 et seq.) is amended by adding at the end the following:

``SEC. 220. ZERO EMISSION VEHICLE PRODUCTION.

    ``(a) Minimum Annual Percentage.--The minimum annual percentage of 
the total quantity of new motor vehicles sold by a vehicle manufacturer 
that are zero emission vehicles shall be--
            ``(1) in each of 2027, 2028, 2029, at least 80 percent; and
            ``(2) in 2030, and in each year thereafter, 100 percent.
    ``(b) Regulations.--Not later than 180 days after the date of 
enactment of this section, the Administrator shall issue regulations to 
carry out this section.
    ``(c) Required Submissions.--The regulations issued under 
subsection (b) shall require a vehicle manufacturer to submit to the 
Environmental Protection Agency, the Department of Energy, and the 
Department of Transportation--
            ``(1) not later than one year after the date of enactment 
        of this section, and annually thereafter, a plan to achieve 
        compliance with the requirements of this section, including the 
        steps to be taken with respect to materials and supply chains;
            ``(2) by April 15, and annually thereafter, a report on 
        compliance with this section, including evidentiary 
        documentation, regarding such compliance; and
            ``(3) documentation regarding lifecycle greenhouse gas 
        emissions of applicable new zero emission vehicles.
    ``(d) Grants for Transition Assistance.--
            ``(1) In general.--The Secretary of Transportation shall 
        make competitive grants to vehicle manufacturers to pay up to 
        50 percent of the costs of meeting the requirements under this 
        section.
            ``(2) Priority.--In awarding grants under this subsection, 
        the Secretary of Transportation shall give priority to vehicle 
        manufacturers who demonstrate significant financial need, as 
        determined by the Secretary of Transportation, to meet the 
        requirement of paragraph (1) or (2) of subsection (a).
            ``(3) Application.--To be eligible to receive a grant under 
        this subsection, a vehicle manufacturer shall submit to the 
        Secretary of Transportation an application at such time, in 
        such manner, and containing such information as the Secretary 
        of Transportation may require.
    ``(e) Report.--Not later than 180 days after the date of the 
enactment of this section, the Administrator shall develop and publish, 
including on the public website of the Environmental Protection Agency, 
a report on--
            ``(1) best practices for meeting the requirements of 
        paragraphs (1) and (2) of subsection (a); and
            ``(2) guidance on how to apply for a grant under this 
        section.
    ``(f) Definitions.--In this section:
            ``(1) Motor vehicle.--The term `motor vehicle', as defined 
        by this part, includes the following:
                    ``(A) A light-duty vehicle that is capable of 
                seating 12 passengers or less.
                    ``(B) A light-duty truck which has a gross vehicle 
                weight in excess of 6,000 pounds.
                    ``(C) A heavy-duty vehicle which has a gross 
                vehicle weight in excess of 8,500 pounds.
            ``(2) Vehicle manufacturer.--
                    ``(A) In general.--The term `vehicle manufacturer' 
                means an entity that--
                            ``(i) engages in the manufacturing of new 
                        motor vehicles; and
                            ``(ii) sells no fewer than 100 new motor 
                        vehicles to ultimate purchasers, either 
                        directly or through an affiliate, such as a 
                        dealer.
                    ``(B) Exclusions.--The term `vehicle manufacturer' 
                does not include--
                            ``(i) a motor vehicle parts supplier; or
                            ``(ii) a dealer.
            ``(3) Zero emission vehicle.--The term `zero emission 
        vehicle' means a motor vehicle, as defined by this subsection, 
        that produces zero exhaust emissions of any criteria pollutant, 
        precursor pollutant, or greenhouse gas in any mode of operation 
        or condition.''.
    (b) Conforming Amendments.--The table of contents for the Clean Air 
Act is amended by inserting after the item relating to section 219 the 
following:

``Sec. 220. Zero emission vehicle production.''.

SEC. 5. REGENERATIVE AGRICULTURAL PRACTICES.

    (a) Minimum Annual Percentage.--The minimum annual percentage of 
land and livestock managed with regenerative agricultural practices for 
a covered land or livestock corporation shall be--
            (1) in each of 2025 and 2026, at least 50 percent;
            (2) in each of 2027, 2028, and 2029, at least 75 percent; 
        and
            (3) in 2030, and each year thereafter, 100 percent.
    (b) Regulations.--Not later than 180 days after the date of 
enactment of this section, the Secretary of Agriculture shall issue 
regulations to carry out this section.
    (c) Required Submissions.--The regulations issued under subsection 
(b) shall require a covered land or livestock corporation to submit to 
the Secretary--
            (1) not later than one year after the date of enactment of 
        this section, and annually thereafter, a plan to achieve 
        compliance with the requirements of this section; and
            (2) beginning in 2028, and annually thereafter, by April 
        15, a report on compliance with this section, including 
        evidentiary documentation regarding such compliance; and
            (3) documentation regarding lifecycle greenhouse gas 
        emissions of managing land and livestock with regenerative 
        agricultural practices.
    (d) Grants for Transition Assistance.--
            (1) In general.--The Secretary shall make competitive 
        grants to covered land or livestock corporations to pay up to 
        50 percent of the costs needed to meet the requirements under 
        this section.
            (2) Priority.--In awarding grants under this subsection, 
        the Secretary shall give priority to a covered land or 
        livestock corporation that displays significant need, as 
        determined by the Secretary, to finance the transition to 
        regenerative agricultural practices.
            (3) Application.--To be eligible to receive a grant under 
        this subsection, a covered land or livestock corporation shall 
        submit to the Secretary an application at such time, in such 
        manner, and containing such information as the Secretary may 
        require.
    (e) Best Practices Report.--Not later than 180 days after the date 
of the enactment of this section, the Secretary shall develop and 
publish, including on the public website of the Department of 
Agriculture, a report on the best practices for covered land or 
livestock corporations for regenerative agricultural practices 
consistent with this section, including how to apply for a grant under 
this section.
    (f) Definitions.--In this section:
            (1) Covered land or livestock corporation.--The term 
        ``covered land or livestock corporation'' means an entity or 
        person that--
                    (A) owns, manages, or controls land or livestock, 
                including through--
                            (i) farming, ranching, or other related 
                        agricultural operations; or
                            (ii) contracts with farmers or ranchers 
                        under which the farmers or ranchers purchase 
                        patented inputs or inputs otherwise owned by 
                        the entity or person to produce agricultural 
                        products to be acquired by such entity (or a 
                        subsidiary thereof); and
                    (B) is required to file an annual report under 
                section 13 of the Securities Exchange Act of 1934 (15 
                U.S.C. 78m), or has issued securities under the 
                Securities Exchange Act of 1933.
            (2) Regenerative agricultural practice.--
                    (A) In general.--The term ``regenerative 
                agricultural practice'' means one of the following 
                practices:
                            (i) Alley cropping.
                            (ii) Conservation cover.
                            (iii) Conservation crop rotation.
                            (iv) Establishment of contour buffer 
                        strips.
                            (v) Contour farming.
                            (vi) Establishment of cover crops.
                            (vii) Critical area planting.
                            (viii) Establishment of cross wind trap 
                        strips.
                            (ix) Establishment of field borders.
                            (x) Establishment of filter strips.
                            (xi) Forage and biomass planting, including 
                        the use of native prairie and seed mixtures.
                            (xii) Implementation of forest stand 
                        improvements.
                            (xiii) Establishment of grassed waterways.
                            (xiv) Hedgerow planting.
                            (xv) Establishment of herbaceous wind 
                        barriers.
                            (xvi) Multistory cropping.
                            (xvii) Nutrient management.
                            (xviii) Prescribed grazing.
                            (xix) Range planting.
                            (xx) Residue and tillage management with no 
                        till.
                            (xxi) Residue and tillage management with 
                        reduced till.
                            (xxii) Establishment of riparian forest 
                        buffers.
                            (xxiii) Establishment of riparian 
                        herbaceous buffers.
                            (xxiv) Silvopasture establishment.
                            (xxv) Stripcropping.
                            (xxvi) Tree and shrub establishment.
                            (xxvii) Upland wildlife habitat 
                        restoration.
                            (xxviii) Establishment of vegetative 
                        barriers.
                            (xxix) Wetland restoration.
                            (xxx) Windbreak renovation.
                            (xxxi) Establishment of windbreaks and 
                        shelterbelts.
                            (xxxii) Woody residue treatment.
                            (xxxiii) Any other highly effective and 
                        evidence-based vegetative or management 
                        practice, as determined by the Secretary, based 
                        on an annual review, that significantly reduces 
                        agricultural greenhouse gas emissions or 
                        assists producers in adapting to, or mitigating 
                        against, increasing weather volatility.
                    (B) Inclusions.--In the case of covered land or 
                livestock corporation raising ruminant livestock, the 
                term ``regenerative agricultural practice'' includes 
                the following practices:
                            (i) The practice of allowing such livestock 
                        to graze pasture during the grazing season at 
                        least 120 days per year.
                            (ii) The practice of requiring such 
                        livestock to intake at least 30 percent dry 
                        matter from grazing pasture during the grazing 
                        season.
                            (iii) The practice of a producer creating a 
                        pasture management plan that manages pasture--
                                    (I) as a crop to meet the feed 
                                requirements for such livestock; and
                                    (II) to protect soil and water 
                                quality.
                            (iv) The practice of allowing such 
                        livestock to--
                                    (I) display natural behaviors at 
                                all times, with access to pasture 
                                during the finishing phase;
                                    (II) have the living conditions and 
                                freedom to express normal behavior;
                                    (III) have freedom from discomfort, 
                                fear, distress, hunger, pain, injury, 
                                or disease;
                                    (IV) not be placed in confined 
                                feeding operations; and
                                    (V) have access to a suitable 
                                shelter.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.

SEC. 6. GREENHOUSE GAS EMISSIONS REDUCTION REGULATIONS.

    Not later than one year after the date of enactment of this 
section, the Secretary of Agriculture shall issue regulations that--
            (1) require the reduction of greenhouse gas emissions 
        resulting from the operations of a covered land or livestock 
        corporation; and
            (2) include guidance on how to reduce greenhouse gas 
        emissions through--
                    (A) reducing the use of synthetic fertilizers and 
                pesticides;
                    (B) supporting the supply of organic fertilizers 
                and pesticides;
                    (C) changing feed content for animals;
                    (D) general farming practices;
                    (E) food and animal transportation, packaging, and 
                distribution;
                    (F) minimizing food waste; and
                    (G) applying the National List of Allowed and 
                Prohibited Substances, established in section 205.6 et 
                seq. of title 7, Code of Federal Regulations (or any 
                successor regulations), to regenerative agricultural 
                practices, as defined in section 5.

SEC. 7. ANIMAL WELFARE.

    (a) Animal Welfare Mandate.--Not later than one year after the date 
of enactment of this section, the Secretary of Agriculture shall issue 
regulations to ensure the well-being of covered animals.
    (b) Specifications.--In issuing regulations with respect to the 
well-being of a covered animal, the Secretary of Agriculture shall--
            (1) prohibit the use of antibiotics, hormones, implants, or 
        other substances, except for purposes of disease treatment as 
        prescribed by a veterinarian;
            (2) prohibit forms of permanent physical mutilation, 
        including debeaking, beak or bill trimming, declawing, 
        pinioning, wattle trimming, desnooding, detoeing, nose rings, 
        and tusk removal;
            (3) ensure that such covered animal lives in a condition 
        that allows the animal to socialize naturally, to engage in 
        natural behaviors, to have freedom of movement, and to be 
        reared with a mother and weaned at a natural time;
            (4) provide for compliance oversight, independent 
        inspections, and transparency of covered facilities; and
            (5) if a violation of requirements of this subsection is 
        found during an independent inspection performed pursuant to 
        paragraph (4), the Secretary shall--
                    (A) establish an online livestream video of such 
                covered facilities that is limited in scope to such 
                violation; and
                    (B) grant the public access to such online 
                livestream video.
    (c) Report to Congress.--Not later than two years after the date of 
enactment of this section, and annually thereafter, the Secretary of 
Agriculture shall submit to the appropriate committees a report 
detailing--
            (1) the findings of animal welfare compliance, oversight, 
        and independent inspections of covered facilities;
            (2) recommendations to Congress on additional actions 
        necessary to ensure covered facilities are compliant with 
        regulations set forth by this section; and
            (3) any other details as required by the Secretary.
    (d) Definitions.--In this section:
            (1) Appropriate committees.--The term ``appropriate 
        committees'' means--
                    (A) the Committee on Agriculture and the Committee 
                on Appropriations of the House of Representatives; and
                    (B) the Committee on Agriculture, Nutrition, and 
                Forestry and the Committee on Appropriations of the 
                Senate.
            (2) Covered animal.--The term ``covered animal'' means an 
        animal raised for human consumption or the production of dairy 
        products, including--
                    (A) beef cattle;
                    (B) broiler chickens;
                    (C) laying hens;
                    (D) dairy cows;
                    (E) sheep;
                    (F) goats;
                    (G) pigs;
                    (H) turkeys;
                    (I) bison;
                    (J) waterfowl, including ducks and geese; and
                    (K) any other animal raised for human consumption 
                or the production of dairy products, as determined by 
                the Secretary.
            (3) Covered facility.--The term ``covered facility'' means 
        a facility of a covered land or livestock corporation (as 
        defined in section 5) that engages in animal raising, 
        transport, slaughter, and processing.

SEC. 8. TAX PROVISIONS RELATING TO CLIMATE TRANSITION COSTS.

    (a) Qualified Capital Climate Transition Costs.--Section 162 of the 
Internal Revenue Code of 1986 is amended by redesignating subsection 
(s) as subsection (t) and by inserting after subsection (r) the 
following new subsection:
    ``(s) Qualified Capital Climate Transition Costs.--
            ``(1) In general.--In the case of a retail electric 
        supplier, vehicle manufacturer, or covered land or livestock 
        corporation, the amount of any deduction allowed under 
        subsection (a) with respect to qualified capital climate 
        transitions costs (determined without regard to this 
        subsection) shall be doubled.
            ``(2) Qualified capital climate transition costs.--For 
        purposes of this subsection, the term `qualified capital 
        climate transition costs' means costs directly related to a 
        transition to renewable energy sources, electric vehicle 
        manufacturing, or regenerative agriculture, as such terms are 
        defined by the Secretary.
            ``(3) Definitions.--For purposes of this section--
                    ``(A) Covered land or livestock corporation.--The 
                term `covered land or livestock corporation' has the 
                meaning given such term in section 5(f)(1) of the Earth 
                Act of 2022.
                    ``(B) Retail electric supplier.--The term `retail 
                electric supplier' has the meaning given such term in 
                section 3(c)(4) of the Earth Act of 2022.
                    ``(C) Vehicle manufacturer.--The term `vehicle 
                manufacturer' has the meaning given such term in 
                section 220(f)(2) of the Clean Air Act.''.
    (b) Qualified Capital Climate Transition Property.--Section 179 of 
the Internal Revenue Code of 1986 is amended--
            (1) in subsection (b)(1), by striking ``The aggregate 
        cost'' and inserting ``Except as provided in subsection (f), 
        the aggregate cost'',
            (2) in subsection (d)(1), by striking ``and'' at the end of 
        subparagraph (B)(ii), by striking the period at the end of 
        subparagraph (C) and inserting ``, and'', and by adding at the 
        end the following new subparagraph:
                    ``(D) at the election of the taxpayer, qualified 
                capital climate transition property (as defined in 
                subsection (f).'', and
            (3) by adding at the end the following new subsection:
    ``(f) Qualified Capital Climate Transition Property.--
            ``(1) In general.--For purposes of this subsection, the 
        term `qualified capital climate transition property' means 
        property directly related to a transition to renewable energy 
        sources, zero emission vehicle manufacturing, or regenerative 
        agriculture, as such terms are defined by the Secretary.
            ``(2) Limitation.--The Secretary shall establish by 
        regulation the aggregate cost which may be taken into account 
        under subsection (a) with respect to qualified capital climate 
        transition property.
            ``(3) Regulations and guidance.--The Secretary may issue 
        such regulations or guidance as necessary to broadly define 
        qualifying section 179 property based on the qualified capital 
        climate transition costs that can be expected to be necessary 
        in future taxable years.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred in taxable years ending after the 
date of the enactment of this Act.

SEC. 9. SUPPORT, OVERSIGHT, AND REPORTING.

    (a) Support and Oversight.--The Administrator of the Environmental 
Protection Agency, the Secretary of Energy, and the Secretary of 
Agriculture shall provide direct oversight, facilitation, and support 
for the transitions to minimum annual percentages required under this 
Act and the amendments made by this Act.
    (b) Combined Reporting Required.--Not later than one year after the 
date of enactment of this Act, and annually thereafter, by April 15, 
the Administrator of the Environmental Protection Agency, the Secretary 
of Energy, and the Secretary of Agriculture shall jointly submit to 
Congress a combined report on the transitions and the compliance of 
such transitions required under this Act and the amendments made by 
this Act.
    (c) National Academy of Sciences Recommendations.--Not later than 
one year after the date of enactment of this Act, the National Academy 
of Sciences shall prepare reports to assist all relevant entities with 
implementing the requirements of this Act and the amendments made by 
this Act, including staffing, supply chain, domestic production, raw 
materials, and the reuse and recycling of all elements utilized to 
create renewable energy.

SEC. 10. DISALLOWANCE OF DEDUCTIONS FOR NON-COMPLIANT BUSINESSES.

    (a) In General.--Part IX of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to items not deductible) is 
amended by adding at the end thereof the following new section:

``SEC. 280I. EXPENDITURES OF NON-COMPLIANT BUSINESSES.

    ``No deduction shall be allowed for any amount paid or incurred 
during the taxable year in carrying on any trade or business if such 
trade or business (or the activities which comprise such trade or 
business) does not comply with the provisions of the Earth Act of 2022 
at any time during such taxable year.''.
    (b) Conforming Amendment.--The table of sections for part IX of the 
subchapter B of chapter 1 of such Code is amended by adding at the end 
thereof the following new item:

Sec. 280I. Expenditures of non-compliant businesses.
    (c) Effective Date.--The amendment made by this section shall apply 
to amounts paid or incurred after the date of the enactment of this Act 
in taxable years ending after such date.

SEC. 11. SEVERABILITY.

    Should any provision in this Act, or an amendment made by this Act, 
be found to be unconstitutional by a court of law, such provision, or 
such amendment, shall be severed from the remainder of this Act, and 
such action shall not affect the enforceability of the remaining 
provisions of this Act.
                                 <all>