I 118th CONGRESS 2d Session H. R. 9652 IN THE HOUSE OF REPRESENTATIVES September 18, 2024 Mr. DeSaulnier introduced the following bill; which was referred to the Committee on Transportation and Infrastructure , and in addition to the Committees on Ways and Means , Education and the Workforce , and Energy and Commerce , for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To incentivize innovative transportation corridors to reduce carbon and GHG emissions, to provide a tax structure that allows for certain investments in public transportation systems, and to enable the fossil fuel workforce to transition to sustainable work sectors.

1. Short title This Act may be cited as the Jobs for a Carbon Free Transportation System Act . I Low Carbon Corridors 2. Low carbon corridor grant program (a) Low carbon corridor defined In this section, the term low carbon corridor means a connected systems-management corridor that connects different methods of transportation, including public transportation systems, rail transportation, roadways, and alternative methods of transportation. (b) Establishment The Secretary of Transportation shall establish a program to provide grants to eligible entities to carry out projects to develop low carbon corridors. The purpose of such projects shall be to— (1) lower carbon emissions along the corridor; (2) increase transportation inter-connectivity; and (3) increase transportation infrastructure reinvestment. (c) Eligible entities The Secretary may award grants under the program to a State, local, or tribal government, or a subdivision thereof, or a metropolitan planning organization. (d) Eligible uses Funds provided under this section may be used to incorporate low carbon and investment mechanisms into low carbon corridors, including— (1) high occupancy vehicle lanes; (2) value capture; (3) transit-oriented development and high-density development; (4) carbon fees; (5) automated vehicle or electric vehicle lanes that are timed and connected to a transit system; (6) Smart Cities connectivity and innovation; (7) high-speed rail; and (8) facilities for alternative modes of transportation, including pedestrian and bicycle facilities. (e) Labor requirements (1) In general A project carried out with a grant under the program shall be subject to the provisions of each of the following: (A) Subchapter IV of chapter 31 of title 40 (commonly known as the Davis-Bacon Act ). (B) Chapter 65 of title 41, United States Code (commonly known as the Walsh-Healy Act ). (C) Chapter 67 of title 41, United States Code (commonly known as the McNamara-O’Hara Service Contract Act of 1965 ). (D) Chapter 37 of title 40, United States Code (commonly known as the Work Hours and Safety Standards Act ). (E) Fair Labor Standards Act of 1938 ( 29 U.S.C. 201 et seq. ). (2) Authorities of the Secretary With respect to the labor standards in this subsection, the Secretary of Labor shall have the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 of title 40, United States Code, as applicable. (f) Strategic partnerships A recipient of a grant under the program may enter into strategic partnerships with nonprofit organizations or universities to develop plans for low carbon corridors. (g) DOT and EPA benchmarks The Secretary of Transportation and the Administrator of the Environmental Protection Agency shall jointly monitor how low carbon corridors with respect to which grants were provided under this section reduce carbon emissions and how any mechanisms described in subsection (d) incorporated into such corridor contribute to carbon emission reductions. (h) Use of American products (1) In general A recipient of funds under this section shall ensure that any iron, steel, and manufactured products used in projects carried out with such funds are produced in the United States. (2) Waiver authority (A) In general The Secretary may waive the requirement of paragraph (1) if the Secretary determines that— (i) applying paragraph (1) would be inconsistent with the public interest; (ii) iron, steel, and manufactured products produced in the United States are not produced in a sufficient and reasonably available amount or are not of a satisfactory quality; or (iii) using iron, steel, and manufactured products produced in the United States will increase the cost of the overall project by more than 25 percent. (B) Publication Before issuing a waiver under subparagraph (A), the Secretary shall publish in the Federal Register a detailed written explanation of the waiver determination. (3) Consistency with international agreements This subsection shall be applied in a manner consistent with the obligations of the United States under international agreements. (4) Definitions In this subsection: (A) Produced in the United States The term produced in the United States means the following: (i) When used with respect to a manufactured product, the product was manufactured in the United States and the cost of the components of such product that were mined, produced, or manufactured in the United States exceeds 60 percent of the total cost of all components of the product. (ii) When used with respect to iron or steel products, or an individual component of a manufactured product, all manufacturing processes for such iron or steel products or components, from the initial melting stage through the application of coatings, occurred in the United States, except that the term does not include— (I) steel or iron material or products manufactured abroad from semi-finished steel or iron from the United States; and (II) steel or iron material or products manufactured in the United States from semi-finished steel or iron of foreign origin. (B) Manufactured product The term manufactured product means any construction material or end product (as such terms are defined in part 25.003 of the Federal Acquisition Regulation) that is not an iron or steel product, including— (i) electrical components; and (ii) non-ferrous building materials, including, aluminum and polyvinylchloride (PVC), glass, fiber optics, plastic, wood, masonry, rubber, manufactured stone, any other non-ferrous metals, and any unmanufactured construction material. II Value Capture 3. Definitions In this title: (1) Affordable transit-oriented development The term affordable transit-oriented development means development of commercial and residential areas located near public transportation stations that promotes affordable housing and affordable commercial space. (2) Captured assessed value The term captured assessed value means the amount, as a percentage or stated sum, of increased assessed value that is utilized from year to year to finance project costs pursuant to the district strategic plan. (3) Current assessed value The term current assessed value means the assessed value of all taxable real property within a tax increment district as of October first of each year that the tax increment district remains in effect. (4) Financial plan The term financial plan means a statement of the project costs and sources of revenue required to accomplish the district strategic plan. (5) Increased assessed value The term increased assessed value means the valuation amount by which the current assessed value of a tax increment district exceeds the original assessed value of the tax increment district. If the current assessed value is equal to or less than the original assessed value, there is no increased assessed value. (6) Local government The term local government means— (A) any county, city, town, township, parish, village, or other general purpose political subdivision of a State; and (B) any combination of political subdivisions or appropriate government entities including special assessment districts. (7) Nominated area The term nominated area means an area which is nominated by 1 or more local governments and the State or States in which it is located for designation under section 7. (8) Original assessed value The term original assessed value means the assessed value of all taxable real property within a tax increment district as of October first of the tax year preceding the year in which the tax increment district was established by the State or local government. (9) Public Transportation The term public transportation has the meaning given the term in section 5302 of title 49, United States Code. (10) Tax increment The term tax increment means capital gain taxes assessed by the Federal Government upon the increased assessed value of property in the tax increment district. (11) Tax increment district The term tax increment district means that area wholly within the corporate limits of a municipality that has been established and designated in accordance to section 7. 4. Value capture policy and planning program (a) In general Chapter 53 of title 49, United States Code, is amended by adding at the end the following: 5341. Technical assistance and value capture policy (a) Technical assistance and policy development (1) Technical assistance The Secretary may make grants to States and local governments to— (A) develop State and local value capture mechanisms for long-term funding that promote mobility, public transportation, and affordable transit-oriented development; (B) improve public transportation and mobility for individuals; and (C) develop strategic partnerships that lead to greater long-term and robust investments in public transportation, mobility, inclusive economic development, and affordable transit-oriented development. (2) Value capture policy Not later than October 1 of the fiscal year that begins 2 years after the date of enactment of this section, the Secretary, in collaboration with State departments of transportation, metropolitan planning organizations, and regional governments, shall establish voluntary value capture standards for value capture mechanisms that promote greater investments into public transportation and affordable transit-oriented development. (3) Technical assistance The Secretary, through a competitive bid process, may enter into contracts, cooperative agreements, and other agreements with nonprofit organizations that have a demonstrated capacity to provide value capture-related technical assistance to grant recipients. (b) Report Not later than 15 months after the date of enactment of this section, the Secretary shall create a report, and make such report available to the public, that contains examples of State and local law and policy that provide for value capture that promotes greater investment in public transportation and affordable transit-oriented development. (c) Best practices Based on the report required under subsection (b), the Secretary shall identify and disseminate to State departments of transportation, the Committee on Banking, Housing, and Urban Affairs, Committee on Finance, Committee on Environment and Public Works, and the Committee on Appropriations of the Senate, and the Committee on Transportation and Infrastructure, Committee on Ways and Means, and the Committee on Appropriations of the House of Representatives examples of best practices where States and local governments have adopted value capture mechanisms that have successfully provided for greater investment in public transportation and affordable transit-oriented development. (d) Definitions In this section: (1) Value capture The term value capture means collecting from an entity a portion of the economic value created by government investments, activities, and policies that have generated alternative revenue streams, assets, or other financial value and repurposing such economic value to assist in funding government investments and activities. (2) Affordable transit-oriented development The term affordable transit-oriented development means development of commercial and residential areas located near public transportation stations that promotes affordable housing and affordable commercial space. (3) Local government The term local government means— (A) any county, city, town, township, parish, village, or other general purpose political subdivision of a State; and (B) any combination of political subdivisions or appropriate government entities including special assessment districts. (4) Public Transportation The term public transportation has the meaning given the term in section 5302 of title 49, United States Code. . (b) Clerical amendment The analysis for chapter 53 of title 49, United States Code, is amended by adding at the end the following: 5341. Technical assistance and value capture policy. . 5. Designation of Federal value capture tax increment financing districts (a) In general From among the eligible areas nominated for designation under this section, the Secretary of Transportation shall designate Federal tax increment financing districts to help State and local government finance the cost for certain improvements and investment in public transportation, affordable housing, and other community development activities in an eligible area. (b) Number of designations The Secretary of Transportation may annually designate nominated areas as a Federal value capture tax increment financing district under this section. (c) Period for which designation is in effect (1) In general Any designation under this section shall remain in effect during the period beginning on the date of the designation and ending on the earliest of— (A) December 31, 2030; (B) the termination date designated by the State and local governments as provided for in a nomination; or (C) the date on which the Secretary revokes the designation. (2) Revocation of designation If appropriate, the Secretary may revoke the designation under this section of an area if such Secretary determines that the local government or the State in which it is located— (A) has modified the boundaries of the area; or (B) is not complying substantially with, or fails to make progress in achieving the benchmarks set forth in section 4. (d) Limitations on designations No area may be designated under this section unless— (1) the area is nominated by 1 or more local governments and the State or States in which it is located for designation under this section; (2) such State or States and the local governments have the authority— (A) to nominate the area for designation under this section; and (B) meet the Federal requirements described in this title; (3) such State or States and the local governments meet the Federal value capture policy standards as described in section 4; (4) the Secretary determines that any information furnished is reasonably accurate; and (5) such State or States and local governments certify that no portion of the area nominated is already included in a Federal tax increment financing district, an infrastructure value capture zone, or in an area otherwise nominated to be designated under this section. (e) Application An eligible applicant shall submit to the Secretary an application that at minimum contains— (1) a tax increment financing district strategic plan, including— (A) the boundaries of the tax increment district by legal description; (B) a list of the tax identification numbers for all lots or parcels within the tax increment district; (C) a description of the present condition and uses of all land and buildings within the tax increment district; (D) a description of the public facilities, improvements or programs within the tax increment district anticipated to be added and financed in whole or in part; (E) a description of the industrial, commercial, residential, mixed-use or retail improvements, downtown development or transit-oriented development within the tax increment district anticipated to be financed in whole or in part; (F) a financial plan in accordance with subsection (c) of this section; (G) a plan for the proposed maintenance and operation of the tax increment district after the planned capital improvements are completed; and (H) the maximum duration of the tax increment district, which may not exceed a total of thirty tax years beginning with the tax year in which the tax increment district is established; and (2) a financial plan for a tax increment financing strategic plan, including— (A) cost estimates for the public improvements and developments anticipated in the district strategic plan; (B) the maximum amount of indebtedness to be incurred to implement the district strategic plan; (C) sources of anticipated revenues; (D) a description of the terms and conditions of any agreements, including any anticipated assessment agreements, contracts or other obligations related to the district strategic plan; (E) estimates of increased assessed values of the tax increment district; and (F) the portion of the increased assessed values to be applied to the district strategic plan as captured assessed values and resulting tax increments in each year of the plan. 6. Eligibility criteria A nominated area shall be eligible for designation under section 5 only if the appropriate State or local government or agency— (1) designates a contiguous area within its jurisdiction as a transit-oriented development or transit-serve corridor; and (2) has created a tax increment financing district or other value capture that meet the value capture standards as described in section 4. 7. Value capture tax increment financing districts; special rule for capital gains (a) In general The Secretary of the Treasury (or the Secretary’s delegate), after consultation with the Secretary of Transportation, shall, with respect to designated Federal value capture tax increment financing districts as described in section 5— (1) establish a procedure to certify the original assessed value of the Federal capital gain taxes within the boundaries of a Federal value capture tax increment financing district, (2) in each year after the establishment of a Federal value capture tax increment financing district, certify with respect to such district the amount of— (A) the assessed value of capital gains collected, (B) the amount by which the current assessed value has increased or decreased from the original assessed value, subject to any assessment agreements, and (C) the amount of the captured assessed value, and (3) conduct such analysis as is necessary to determine the maximum amount available of Federal guarantees of qualified transit-oriented development bonds, but not to exceed an annual amount to be determined by the Secretary. (b) Federal value capture tax increment financing district For purposes of this section, the term Federal value capture tax increment financing district means a targeted redevelopment area within a municipality, county, or other government entity, from which all or a portion of projected future property tax revenue increases is temporarily dedicated to finance infrastructure improvements (or other investments) with the objective of stimulating economic development. (c) Rulemaking and regulations Not later than 1 year after the date of enactment of this Act, the Secretary of the Treasury shall issue such rules or regulations as may be necessary or appropriate to carry out the purposes of this section. (d) Notification to Congress At least 30 days before issuing a letter of intent for establishment of a Federal value capture tax increment district, the Secretary of the Treasury shall notify in writing the Committee on Banking, Housing, and Urban Affairs, the Committee on Finance, Committee on Environment and Public Works and the Committee on Appropriations of the Senate and the Committee on Transportation and Infrastructure, Committee on Ways and Means, and the Committee on Appropriations of the House of Representatives of the designated Federal value capture tax increment districts. The Secretary shall include with the notification a copy of the nomination application and designation as well as the evaluations and ratings for each designation. (e) Assessment agreement For purposes of this section, the term assessment agreement means an agreement that establishes, with respect to a Federal value capture tax increment financing district— (1) the tax base, (2) the amount of increased tax collections to be dedicated to such district, (3) procedures for collecting funds, and (4) approved uses for funds. 8. Expansion of long-term local funding for public infrastructure and affordable transit-oriented development (a) In general Subpart A of part IV of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: 147A. Qualified transit-oriented development bonds (a) In general In this section, the term qualified transit-oriented development bond means any private activity bond issued as part of an issue for the purposes of the acquisition, construction, reconstruction, or improvement of land or property that is within one half-mile of an existing or planned major public transportation facility including fixed-guideway transit stations (rail and bus rapid transit), designated High Speed Rail or existing intercity rail stations, or an intermodal transportation station. (b) A bond shall not be treated as a qualified transit-oriented development bond unless the issue described in subsection (a) is issued pursuant to relevant local government-adopted policies, as determined by the Secretary, that— (1) promote long-term affordable housing or affordable commercial spaces, (2) promote high-density, mixed-use development near public transportation stations, (3) encourage value capture and value sharing that promotes greater investment in public transportation and affordable transit-oriented development, including any strategy developed under section 5341, (4) the payment of the principal and interest on such issue is primarily secured by taxes of general applicability imposed by a general purpose governmental unit, (5) a 25 to 50 percent increase, as determined by the Secretary, in real property tax revenues (attributable to increases in assessed value) by reason of the carrying out of such purposes in such area is reserved exclusively for debt service on such issue (and similar issues) to the extent such increase does not exceed such debt service, or (6) other value capture mechanisms including user fees, sales tax revenues, or other revenue sources dedicated to the project by property owners and businesses. (c) Transit-Oriented Development Volume Cap (1) In general The aggregate face amount of Transit-oriented development bonds issued pursuant to an issue, when added to the aggregate face amount of transit-oriented development bonds previously issued by the issuing authority during the calendar year, shall not exceed such issuing authority's Move America volume cap for such year. (2) Allocation of volume cap Each State may allocate the transit-oriented development volume cap of such State among governmental units (or other authorities) in such State having authority to issue private activity bonds. (d) Application of Davis-Bacon Act requirements with respect to Federal value capture tax increment financing districts Subchapter IV of chapter 31 of the title 40, United States Code, shall apply to projects financed with the proceeds of qualified transit-oriented development bonds. . (b) Conforming amendment The table of sections for subpart A of part IV of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new item: Sec. 147A. Qualified transit-oriented development bonds. . (c) Effective date The amendments made by this section shall apply to taxable years beginning after the Secretary has determined the procedure described in section 8(a)(1). III Protecting Workers for a Clean Future Act 9. Findings Congress finds the following: (1) The fossil fuel and fossil fuel-dependent industries have been major drivers of employment and economic growth in regions throughout California. Yet, despite the success of these industries, many local residents are unemployed or live in poverty. In addition, nearby communities often suffer from pollution, poor air and water quality, and other health hazards. The goal of community transition grants is to develop a vision for a future economy based on equity, sustainability, and shared prosperity. A regional approach requires bringing together a diverse set of stakeholders that represent the whole community. This coalition must be capable of developing and implementing strategies to support workers and communities that will be affected by the transition away from fossil fuels. To be effective, coalitions should work closely with high road employers and industry leaders to identify in-demand skills and workforce strategies that promote emerging and expanding sectors of the regional economy. (2) These strategies should provide pathways for impacted workers to transition to other sustainable jobs and careers. They should also include the frontline communities who have historically been excluded from the economic benefits of the fossil fuel industry, while bearing the greatest costs of pollution and ecological damage. (3) Partnerships should include organizations representing workers and communities impacted by the fossil fuel industry and the transition to a carbon-constrained economy. Workers, residents, and community leaders have inherent knowledge of regional dynamics, issues, and needs, and should function at the center of developing regional solutions. (4) In addition, coalitions should be diverse and represent a wide range of regional interests and stakeholders, including organizations representing labor, environmental justice, industry, economic development, local tribal and municipal government, and educational institutions. (5) As the United States and global economies shift from fossil fuels to more sustainable sources of energy, the fossil fuel workforce cannot be left behind. They must be part of the conversation and have a role in shaping the transition. 10. Renewable energy transition grant program (a) In general The Secretary of Labor, in consultation with the Secretary of Energy, shall establish a grant program for local governments for the purpose of developing a plan to transition workers from employment in fossil fuel industries to employment in sustainable industries. (b) Eligibility The Secretary of Labor may award grants under subsection (a) to a local or Tribal government that— (1) establishes industry or sector partnerships (as defined in section 3 of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3102 )); (2) is in a locality that the Secretary of Energy determines to have a percentage of traditional energy sector jobs that is average or above average relative to the United States; and (3) certifies that such local or Tribal government will develop the transition plan described in subsection (a) in consultation with relevant State and other experts, including experts in energy labor, green economy policies, and energy policy, and with relevant State officials, if applicable. (c) Determination of percentage of traditional energy sector jobs In making the determination under subsection (b)(2), the Secretary of Labor shall take into consideration information from the report entitled U.S. Energy and Employment Report issued by the Secretary in January, 2017. (d) Use of funds Funds under subsection (a) may be used for the following purposes: (1) To develop a transition plan described in subsection (a). (2) To support an existing apprenticeship program for apprenticeable occupation or, if in a non-traditional industry, to develop an apprenticeship program. (3) To train individuals who are new to the workforce for jobs in sustainable industries, including but not limited to, manufacturing, autonomous vehicles, electric vehicles, renewable energy, CERCLA remediation, and may include a partnership or agreements with employers to provide jobs for trainees. (e) Transition plan requirements A transition plan funded under subsection (a)— (1) shall include assistance for accessing all existing applicable Federal and State aid for displaced workers, including unemployment insurance, job transition training, and community services for the affected community as well as trade adjustment assistance and other programs, if applicable; and (2) may also include assistance to supplement existing Federal and State aid, including funds for bridges to retirement for older workers, wage insurance for workers who find employment in lower wage jobs, and funding for significant career change training for workers who wish to change careers, including case management and career path counseling. (f) Authorization There are authorized to be appropriated such sums as necessary to carry out this section. 11. National Employment Corps (a) Establishment There is established within the Department of Labor a National Employment Corps. (b) Job guarantee grants (1) In general If local government or Tribe described in section 10(b) executes a plan under section 10 in good faith, but all workers described in section 10(a) are not successfully transitioned, the Secretary of Labor, acting through the National Employment Corps, shall establish a program (hereinafter referred to as the program ) to provide grants to local and Tribal governments to provide direct employment projects for the purpose of guaranteeing a job and job training to any eligible worker not successfully transitioned under such plan. (2) Use of funds The grants under paragraph (1) shall cover wage, benefits, and material expenses of eligible workers. (3) Eligible worker In this section, the term eligible worker means any individual who loses a job or reasonably anticipates losing a job due to a transition from traditional energy sources to sustainable energy sources. (c) Coordination of Federal efforts The Corps shall work with Federal agencies to identify areas of needed investment in the United States economy, including infrastructure, energy efficiency, retrofitting, elder care, child care, job training, education, and health services. (d) Federal component (1) In general If projects funded under the program under subsection (b) are inadequate to maintain full employment in the locality or Tribe, the Secretary shall intervene in the locality or Tribe to provide adequate employment opportunities to guarantee employment to workers described in such subsection. (2) Additional services The Corps shall also offer the following services to eligible workers: (A) Supportive services. (B) Wrap-around services, including: (i) Transportation. (ii) Childcare. (iii) Job preparation services. (iv) Counseling. (C) Adult education and literacy activities. (D) Activities to assist justice-involved individuals. (3) Website and database To assist with an individual’s move from the job guarantee to other employment opportunities under a National Employment Corps, the Secretary shall establish a website and database listing individuals employed under the program as available for, and seeking, employment. Individuals shall be allowed up to one day (8 hours) per employed month to seek alternative employment and for professional development. (e) Coordination of local efforts Any local or Tribal government that receives a grant shall develop employment proposals in coordination with community leaders, labor organizations, and local residents to ensure the proposals will serve the needs of the constituents and available pool of labor. The employment proposals may not be used to employ individuals who will replace or speed the displacement of existing employees or individuals who would otherwise perform similar work. (f) Employment protections (1) Collective bargaining units Participants shall be included in an established bargaining unit and covered by any applicable collective bargaining agreement upon the establishment of such agreement. (2) Wages under the program Wage variation shall be built into the program, as determined by the Secretary of Labor, to account for workers’ previous experience, education, and region of residence, as well as the prospect of promotion within the National Employment Corps. (3) Website To manage projects past, present, and future, the National Employment Corps shall create a website where all projects will be listed. (4) Minimum wage Any individual employed using funds under this section shall be paid wages at a rate that is not less than $15.00 per hour and that are comparable to wages in the region, plus benefits, and indexed for inflation. (g) Apprenticeship defined In this section, the term apprenticeship means an apprenticeship program registered under the Act of August 16, 1937 (commonly known as the National Apprenticeship Act ) (50 Stat. 664, chapter 663; 29 U.S.C. 50 et seq. ), including any requirement, standard, or rule promulgated under such Act, as such requirement, standard, or rule was in effect on December 30, 2019.