I 118th CONGRESS 2d Session H. R. 9230 IN THE HOUSE OF REPRESENTATIVES July 30, 2024 Mr. Tonko introduced the following bill; which was referred to the Committee on Energy and Commerce , and in addition to the Committees on Ways and Means , Education and the Workforce , and Science, Space, and Technology , 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 amend the Clean Air Act to establish a program to annually phasedown greenhouse gas emissions, and for other purposes.

1. Short title; table of contents (a) Short title This Act may be cited as the Climate Pollution Standard and Community Investment Act of 2024 . (b) Table of contents The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. Title I—National Climate Response Sec. 101. Climate pollution reduction certainty. Sec. 102. Clean Energy Rebate Program. Sec. 103. Worker and Community Assistance Fund. Sec. 104. Cleaner Air Community Fund. Sec. 105. Negative Emissions Activities Fund. Sec. 106. Energy Innovation Fund. Sec. 107. Emission allowance market oversight. Sec. 108. Direct hire authority for implementation of this title. Title II—Worker and Community Assistance Sec. 201. Definitions. Sec. 202. Energy and economic transition impact studies. Sec. 203. Office of Energy and Economic Transition. Sec. 204. Interagency Energy and Economic Transition Task Force. Sec. 205. Stakeholder Advisory Committee. Sec. 206. Assistance for adversely affected communities. Sec. 207. Community-Based Transition Hub program. Sec. 208. Assistance for adversely affected workers. I National Climate Response 101. Climate pollution reduction certainty (a) In general The Clean Air Act ( 42 U.S.C. 7401 et seq. ) is amended by adding after title VI the following new title: VII Climate Pollution Reduction Program A General 701. Definitions In this title: (1) Attributable greenhouse gas emissions The term attributable greenhouse gas emissions , for a given calendar year, means— (A) for a covered entity that is a fuel producer or importer described in paragraph (4)(B), greenhouse gas emissions that would be emitted from the combustion of any petroleum-based or coal-based liquid fuel, petroleum coke, or natural gas liquid, produced or imported by that covered entity during that calendar year for sale or distribution in interstate commerce; (B) for a covered entity that is a bulk producer or importer described in paragraph (4)(C), the tons of carbon dioxide equivalent of any gas described in clauses (i) through (v) of paragraph (4)(C)— (i) produced or imported by such covered entity during that calendar year for sale or distribution in interstate commerce; or (ii) released as fugitive emissions in the production of fluorinated gas; and (C) for a natural gas local distribution company described in paragraph (4)(J), greenhouse gas emissions that would be emitted from the combustion of the natural gas, and any other gas meeting the specifications for commingling with natural gas for purposes of delivery, as determined by the Administrator, that such entity delivered during that calendar year to customers that are not covered entities. (2) Carbon dioxide equivalent The term carbon dioxide equivalent means the unit of measure, expressed in tons, of a greenhouse gas as provided under section 713. (3) Compliance period (A) The term compliance period , with respect to compliance periods 2 through 10 and subsequent compliance periods, means the period of 3 consecutive calendar years following the preceding compliance period. (B) The term compliance period 1 means calendar years 2026, 2027, and 2028. (4) Covered entity The term covered entity means each of the following: (A) Any electricity source with a nameplate capacity of at least 25 megawatts. (B) Any stationary source that produces, and any entity that imports, for sale or distribution in interstate commerce in 2024 or any subsequent year, petroleum-based or coal-based liquid fuel, petroleum coke, or natural gas liquid, which, in the aggregate, if combusted would emit 25,000 or more tons of carbon dioxide equivalent, as determined by the Administrator. (C) Any stationary source that produces, and any entity that imports, for sale or distribution in interstate commerce, in bulk, or in products designated by the Administrator, in 2024 or any subsequent year, 25,000 or more tons of carbon dioxide equivalent of— (i) fossil fuel-based carbon dioxide; (ii) nitrous oxide; (iii) perfluorocarbons; (iv) sulfur hexafluoride; (v) any other fluorinated gas, except for nitrogen trifluoride, that is a greenhouse gas, as designated by the Administrator under section 712; or (vi) any combination of greenhouse gases described in clauses (i) through (v). (D) Any stationary source that emits 25,000 or more tons of carbon dioxide equivalent of nitrogen trifluoride in 2024 or any subsequent year. (E) Any geologic sequestration site. (F) Any stationary source in any of the following industrial sectors: (i) Adipic acid production. (ii) Aluminum production. (iii) Ammonia manufacturing. (iv) Cement production. (v) Hydrochlorofluorocarbon production. (vi) Lime manufacturing. (vii) Nitric acid production. (viii) Petroleum refining. (ix) Phosphoric acid production. (x) Silicon carbide production. (xi) Soda ash production. (xii) Titanium dioxide production. (xiii) Coal-based liquid or gaseous fuel production. (G) Any stationary source in the chemical or petrochemical sector that, in 2024 or any subsequent year— (i) produces acrylonitrile, carbon black, ethylene, ethylene dichloride, ethylene oxide, or methanol; or (ii) emits 25,000 or more tons of carbon dioxide equivalent from the production of any number of chemical or petrochemical products. (H) Any stationary source that— (i) emits 25,000 or more tons of carbon dioxide equivalent in 2024 or any subsequent year; and (ii) is in one of the following industrial sectors: ethanol production, ferroalloy production, fluorinated gas production, food processing, glass production, hydrogen production, iron and steel production, lead production, magnesium production, pulp and paper manufacturing, landfill operations, wastewater treatment operations, and zinc production. (I) Any fossil fuel-fired combustion device (such as a boiler) or grouping of such devices that— (i) is all or part of an industrial source not specified in subparagraph (D), (F), (G), or (H); and (ii) emits 25,000 or more tons of carbon dioxide equivalent in 2024 or any subsequent year. (J) Any natural gas local distribution company that in 2024 or any subsequent year delivers to customers that are not covered entities 460,000,000 cubic feet or more of the total of— (i) natural gas; and (ii) any other gas meeting the specifications for commingling with natural gas for purposes of delivery, as determined by the Administrator. (5) Criteria air pollutant The term criteria air pollutant means an air pollutant subject to national ambient air quality standards under section 109. (6) Designated representative The term designated representative means, with respect to an entity described in subparagraph (A), (B), or (C), an individual authorized, through a certificate of representation submitted to the Administrator by the owners and operators or similar entity official, to represent the owners and operators or similar entity official in all matters pertaining to this title (including the holding, transfer, or disposition of emission allowances), and to make all submissions to the Administrator under this title. Entities covered under this paragraph are— (A) covered entities; (B) reporting entities (as defined in section 714); and (C) any other entities receiving or holding emission allowances under this title. (7) Electricity source The term electricity source means a stationary source that includes one or more combustion devices that, on January 1, 2024, or any date thereafter, are fossil fuel-fired and serve a generator that produces electricity for sale. (8) Emission allowance (A) In general Except as provided in subparagraph (B), the term emission allowance means a limited authorization to emit, or have attributable greenhouse gas emissions in an amount of, 1 ton of carbon dioxide equivalent of a greenhouse gas in accordance with this title. (B) Overburdened communities With respect to a covered entity that is a stationary source, including electricity sources and industrial sources, operating in a location designated as a Cleaner Air Community under section 733 of part C of this title, the term emission allowance means a limited authorization to emit 0.5 tons of carbon dioxide equivalent of a greenhouse gas in accordance with this title. (9) Fossil fuel The term fossil fuel means natural gas, petroleum, or coal, or any form of solid, liquid, or gaseous fuel derived therefrom. (10) Fossil fuel-fired The term fossil fuel-fired means powered by combustion of fossil fuel, alone or in combination with any other fuel, regardless of the percentage of fossil fuel consumed. (11) Fugitive emissions The term fugitive emissions means greenhouse gas emissions from leaks, valves, joints, or other small openings in pipes, ducts, or other equipment, or from vents. (12) Geologic sequestration site The term geologic sequestration site means a site where a greenhouse gas is geologically sequestered. (13) Greenhouse gas The term greenhouse gas means any gas described or designated under section 712(a). (14) Greenhouse gas emission The term greenhouse gas emission means the release of a greenhouse gas into the ambient air, except— (A) a release of methane for which the Administrator imposes and collects a charge under section 136(c) of the Clean Air Act; (B) a release of a hydrofluorocarbon that is regulated pursuant to title VI of this Act or section 103 of the Consolidated Appropriations Act, 2021; and (C) greenhouse gases that are captured and geologically sequestered, unless the greenhouse gas is later released into the ambient air. (15) Hazardous air pollutant The term hazardous air pollutant has the meaning given such term in section 112(a). (16) Hold The term hold means, with respect to an emission allowance, to have in the appropriate account in the emission allowance tracking system established under section 718. (17) Holder The term holder means, with respect to an emission allowance, the entity that holds such emission allowance. (18) Industrial source The term industrial source means any stationary source that— (A) is not an electricity source; and (B) is in— (i) the manufacturing sector (as defined in North American Industrial Classification System codes 31, 32, and 33); or (ii) the natural gas processing or natural gas pipeline transportation sector (as defined in North American Industrial Classification System codes 211112 and 486210). (19) Natural gas liquid The term natural gas liquid means ethane, butane, isobutane, natural gasoline, and propane. (20) Natural gas local distribution company The term natural gas local distribution company has the meaning given the term local distribution company in section 2(17) of the Natural Gas Policy Act of 1978. (21) Negative Emissions Activities Fund The term Negative Emissions Activities Fund means the fund established under section 105 of the Climate Pollution Standard and Community Investment Act of 2024 . (22) Output The term output means the total tons or other standard unit (as determined by the Administrator) produced by an entity in an industrial sector. (23) Petroleum The term petroleum includes crude oil, tar sands, oil shale, and heavy oils. (24) Retire The term retire , with respect to an emission allowance, means to disqualify such emission allowance for any subsequent use. (25) Sequestered; sequestration The terms sequestered and sequestration mean the separation, isolation, or removal of greenhouse gases from the atmosphere, as determined by the Administrator. Such terms include biological, geologic, and mineral methods of separation, isolation, and removal, but do not include ocean fertilization techniques. (26) Ton The term ton means a metric ton. (27) Vintage year The term vintage year means the calendar year for which an emission allowance is established under— (A) section 715; or (B) with respect to the establishment of the cost containment reserve, section 720. 702. Economy-wide reduction goal It is the national goal for the United States— (1) to achieve net-zero greenhouse gas emissions by not later than 2050; and (2) for each year thereafter— (A) to maintain net-zero greenhouse gas emissions; and (B) seek to achieve net-negative greenhouse gas emissions as determined necessary by the Administrator. 703. Labor standards The Administrator shall take such action as may be necessary to ensure that all laborers and mechanics employed by contractors or subcontractors on projects assisted pursuant to this title, including projects funded in whole or in part by the proceeds from the sale of emission allowances or by financial incentives provided using such proceeds, shall be paid wages at rates not less than those prevailing for the same type of work on similar construction in the locality as determined by the Secretary of Labor, in accordance with subchapter IV of chapter 31 of title 40, United States Code. The Secretary of Labor shall have, with respect to the labor standards specified in this section, the authority and functions set forth in Reorganization Plan No. 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 of title 40, United States Code. 704. Regulations Except as otherwise provided in this title, the Administrator shall promulgate final regulations to carry out this title not later than 24 months after the date of enactment of this title. B Pollution Limitation and Phasedown from Covered Entities 711. Aggregate enforceable targets for covered entities (a) In general The Administrator shall, by rule, establish targets that are enforceable under this title for the aggregate quantity of greenhouse gas emissions of covered entities for each calendar year beginning in 2026 such that— (1) in 2026, the aggregate quantity of greenhouse gas emissions (including attributable greenhouse gas emissions) from covered entities is at least 5 percent below the average annual aggregate quantity of greenhouse gas emissions in 2022, 2023, and 2024 from equivalent entities described in subsection (d)(1); (2) in 2030, the aggregate quantity of greenhouse gas emissions (including attributable greenhouse gas emissions) from covered entities does not exceed 50 percent of the aggregate quantity of greenhouse gas emissions in 2005 from equivalent entities described in subsection (d)(2); (3) in 2040, the aggregate quantity of greenhouse gas emissions (including attributable greenhouse gas emissions) from covered entities does not exceed 30 percent of the aggregate quantity of greenhouse gas emissions in 2005 from equivalent entities described in subsection (d)(2); and (4) in 2050, the aggregate quantity of greenhouse gas emissions (including attributable greenhouse gas emissions) from covered entities does not exceed 10 percent of the aggregate quantity of greenhouse gas emissions in 2005 from equivalent entities described in subsection (d)(2). (b) Annual reductions Beginning with 2027, the Administrator shall, by rule, require the aggregate quantity of greenhouse gas emissions from covered entities to decline on an annual basis, by at least 2 percent of the aggregate quantity of greenhouse gas emissions in 2005 from equivalent entities described in subsection (d)(2), until annual greenhouse gas emissions from covered entities do not exceed 10 percent of the aggregate quantity of greenhouse gas emissions in 2005 from equivalent entities described in subsection (d)(2). Upon achieving such an annual aggregate quantity, the Administrator shall ensure that any future annual quantity of greenhouse gas emissions from covered entities does not exceed the annual aggregate quantity of greenhouse gas emissions from covered entities in the preceding year. (c) Addition of covered entities or greenhouse gases, or change in exchange values The quantities calculated pursuant to subsections (a) and (b) may not be revised to reflect— (1) an entity becoming or ceasing to be a covered entity after the date of the establishment of targets pursuant to subsection (a); (2) the designation of a gas as a greenhouse gas pursuant to section 712 after such date; or (3) the revision of the carbon dioxide equivalent value of any greenhouse gas pursuant to section 713 after such date. (d) Equivalent entities described An entity is an equivalent entity described in this subsection if— (1) for purposes of subsection (a)(1), the entity would have been a covered entity in 2022, 2023, or 2024, if— (A) the definition of a covered entity in section 701 had been in effect for the respective year; and (B) the references in such definition to 2024 were references to 2022; and (2) for purposes of paragraphs (2) through (4) of subsection (a), an entity that would have been a covered entity in 2005, if— (A) the definition of a covered entity in section 701 had been in effect for the respective year; and (B) the references in such definition to 2024 were references to 2005. 712. Designation of greenhouse gases (a) Greenhouse gases For purposes of this title, the following are greenhouse gases: (1) Carbon dioxide. (2) Methane. (3) Nitrous oxide. (4) Sulfur hexafluoride. (5) Any hydrofluorocarbon. (6) Any perfluorocarbon. (7) Nitrogen trifluoride. (8) Any other anthropogenic gas designated as a greenhouse gas by the Administrator under subsection (b). (b) Determination of additional greenhouse gases The Administrator, by rule— (1) may determine whether 1 ton of an anthropogenic gas makes the same or greater contribution to global warming over 100 years as 1 ton of carbon dioxide; (2) shall publish, in accordance with section 713, the carbon dioxide equivalent value for each gas with respect to which the Administrator makes an affirmative determination under paragraph (1); (3) may for each gas with respect to which the Administrator makes an affirmative determination under paragraph (1) and that is used as a substitute for a class I or class II substance pursuant to title VI of this Act, determine the extent to which to regulate that gas pursuant to title VI of this Act; and (4) may designate as a greenhouse gas for purposes of this title each gas for which the Administrator makes an affirmative determination under paragraph (1), to the extent that it is not regulated pursuant to title VI or section 103 of the Consolidated Appropriations Act, 2021. 713. Carbon dioxide equivalent value of greenhouse gases (a) Measure of quantity of greenhouse gases Any provision of this title that refers to a quantity or percentage of a quantity of a greenhouse gas means the quantity or percentage of the greenhouse gas expressed in carbon dioxide equivalent. (b) Initial value Except as revised by the Administrator pursuant to subsection (c), the carbon dioxide equivalent value for purposes of this title for any greenhouse gas shall be the 100-year Global Warming Potential for the greenhouse gas provided in the most recent assessment report from the Intergovernmental Panel on Climate Change as of the date of enactment of this title. (c) Periodic revision (1) Revision and publication Not later than January 1, 2030, and (except as provided in paragraph (3)) not less than once every 5 years thereafter, the Administrator shall— (A) revise the carbon dioxide equivalent value for purposes of this title for any greenhouse gas to reflect the 100-year Global Warming Potential provided in the most recent assessment report from the Intergovernmental Panel on Climate Change (or any successor organization); and (B) publish in the Federal Register any such revision. (2) Effective date of revision A revision published in the Federal Register under paragraph (1)(B) shall take effect for greenhouse gas emissions on January 1 of the first calendar year that begins at least 9 months after the date on which the revision was published. (3) Decrease in frequency The Administrator may decrease the frequency of revision under paragraph (1) if the Administrator determines that such decrease is appropriate in order to synchronize such revision with any similar revision process carried out pursuant to the United Nations Framework Convention on Climate Change or to an agreement negotiated under that convention. 714. Greenhouse gas registry for monitoring and reporting (a) Reporting entity In this section, the term reporting entity means an entity that is— (1) a covered entity; (2) an entity that is required to report under part 98 of title 40, Code of Federal Regulations (or any successor regulations); (3) an entity that receives emission allowances under section 723; or (4) any other entity that the Administrator determines to be a reporting entity for purposes of this title. (b) Regulations (1) In general Not later than 6 months after the date of enactment of this title, the Administrator shall issue regulations establishing a Federal greenhouse gas registry. (2) Reporting Except as provided in paragraphs (3) and (4), such regulations— (A) shall require reporting entities to report to the Administrator consistent with part 98 of title 40, Code of Federal Regulations (or any successor regulations); (B) may include reporting requirements that are additional to the requirements under such part 98 of title 40, Code of Federal Regulations (or any successor regulations), as determined appropriate by the Administrator to implement this title; and (C) shall ensure the completeness, consistency, transparency, accuracy, precision, and reliability of data included in the Federal greenhouse gas registry. (3) Timing For calendar year 2026 and each subsequent calendar year, each reporting entity shall submit annually data required under this section to the Administrator not later than 60 days after the end of the applicable calendar year, except when the data is already being reported to the Administrator on an earlier timeframe. (4) Waiver of reporting requirements The Administrator may waive reporting requirements under this section for specific entities to the extent that the Administrator determines that sufficient and equally or more reliable, verified, and timely data are available to the Administrator and the public on the internet under other mandatory, statutory Federal requirements. 715. Emission allowances (a) In general The Administrator shall establish a quantity of emission allowances for each calendar year starting in 2026 as necessary to achieve the targets under section 711(a) and the reductions under section 711(b). (b) Identification numbers The Administrator shall assign to each emission allowance established under subsection (a) a unique identification number that includes the vintage year for that emission allowance. (c) Emission allowances for each calendar year (1) Compliance periods 1 and 2 Not later than January 1, 2026, the Administrator shall establish the quantity of emission allowances for each year in compliance period 1 and compliance period 2. (2) Following two compliance periods Not later than July 1, 2031, and every 6 years thereafter, the Administrator shall establish the quantity of emission allowances for each calendar year of the following two compliance periods. When establishing the quantity of emission allowances under this paragraph for a calendar year, the Administrator shall, consistent with subsection (a), consider— (A) the economy-wide reduction goals established by section 702; (B) the total number of emission allowances in circulation, as required to be published by subsection 716(e); and (C) other factors determined appropriated by the Administrator. (3) Failure to set emission allowance quantity If the Administrator fails to establish the quantity of emission allowances for a compliance period by the start of the first calendar year of the compliance period, the quantity of emission allowances established for each calendar year of such compliance period shall be the amount equal to— (A) the quantity of emission allowances established for the preceding calendar year; minus (B) the quantity of emission allowances that is equal to 3.5 percent of the aggregate quantity of greenhouse gas emissions in 2005. 716. Prohibition of excess greenhouse gas emissions (a) Prohibition Effective January 1, 2026, a covered entity may not emit greenhouse gas emissions and have attributable greenhouse gas emissions, in combination, in excess of the quantity of greenhouse gas emissions represented by the number of emission allowances surrendered by the covered entity pursuant to subsection (b)(3) for the compliance period. (b) Demonstrating compliance Except as otherwise provided in this section, a covered entity shall surrender to the Administrator for retirement— (1) by 12:01 a.m. on April 1 (or a later date established by the Administrator under subsection (h)) of the second year of a compliance period, not less than the number of emission allowances needed to represent 50 percent of the total quantity of greenhouse gas emissions and attributable greenhouse gas emissions, in combination, of the covered entity during the first year of the compliance period; (2) by 12:01 a.m. on April 1 (or a later date established by the Administrator under subsection (h)) of the third year of a compliance period, not less than the number of emission allowances (including those surrendered pursuant to paragraph (1) for the compliance period) needed to represent 50 percent of the total quantity of greenhouse gas emissions and attributable greenhouse gas emissions, in combination, of the covered entity during the first 2 years of the compliance period; and (3) by 12:01 a.m. on April 1 (or a later date established by the Administrator under subsection (h)) of the year following a compliance period, not less than the number of emission allowances (including those surrendered pursuant to paragraphs (1) and (2) for the compliance period) needed to represent 100 percent of the total quantity of greenhouse gas emissions and attributable greenhouse gas emissions, in combination, of the covered entity during the full compliance period. (c) Application to fractions of tons For purposes of this section, any amount less than 1 ton of carbon dioxide equivalent of greenhouse gas emissions or attributable greenhouse gas emissions shall be treated as 1 ton of such carbon dioxide equivalent. (d) Retirement of emission allowances As soon as practicable after each deadline established under subsection (b), the Administrator shall retire the quantity of emission allowances surrendered by covered entities pursuant to subsection (b)(3) for the compliance period. (e) Total number of allowances in circulation As soon as practicable after the deadline described in subsection (b)(3), the Administrator shall publish an estimate of the total quantity of emission allowances held by all persons on the day after such deadline. (f) Designated representatives The final regulations promulgated under section 703 shall require that each covered entity, and each entity holding emission allowances or receiving emission allowances from the Administrator under this title, submit to the Administrator a certificate of representation designating a designated representative. (g) Education and outreach The Administrator shall establish and carry out a program of education and outreach to assist covered entities in meeting the requirements of this title. Such program shall include education with respect to using markets to effectively meet such requirements. (h) Adjustment of deadline The Administrator may, by rule, establish a deadline for demonstrating compliance in accordance with subsection (b) later than the date otherwise provided in subsection (b), as necessary to ensure the availability of greenhouse gas emissions data, but in no event shall the deadline be later than June 1 of the respective calendar year. 717. Penalty for noncompliance (a) Excess greenhouse gas emissions penalty (1) In general A covered entity that fails for any year to demonstrate compliance as required by section 716 by the applicable deadline shall be liable for payment to the Administrator of a civil penalty in the amount described in paragraph (2). (2) Amount The amount of a penalty required to be paid under paragraph (1) shall be equal to the product obtained by multiplying— (A) the number of tons of carbon dioxide equivalent of greenhouse gas emissions and attributable greenhouse gas emissions for which the covered entity failed to demonstrate compliance as required by section 716 by the applicable deadline; by (B) 3 times the auction clearing price for the earliest vintage year emission allowances in the last auction carried out pursuant to section 720 before such deadline. (3) Timing A penalty under this subsection shall be immediately due and payable to the Administrator, without demand. (4) No effect on liability A penalty due and payable by a covered entity under this subsection may not diminish the liability of the covered entity for any fine, penalty, or assessment against the covered entity for the same violation under any other provision of this Act or any other law. (b) Excess emissions allowances A covered entity that fails to demonstrate compliance for any year, as described in subsection (a)(1), shall be liable to offset the covered entity’s excess greenhouse gases emissions and attributable greenhouse gas emissions by an equal quantity of emission allowances during the year after the year in which such failure to demonstrate compliance occurred, or such longer period as the Administrator may prescribe. (c) Treatment as separate violation For purposes of this section, each ton of carbon dioxide equivalent for which a covered entity fails to demonstrate compliance as required by section 716 shall be treated as a separate violation. 718. Tracking system The final regulations promulgated under section 703 shall include a system for issuing, recording, holding, and tracking emission allowances. Such system shall provide for appropriate publication of the information in the system on the internet. 719. Program flexibility (a) Permitted transactions Except as otherwise provided in this title, the lawful holder of an emission allowance may— (1) without restriction, sell, exchange, or transfer the emission allowance; (2) subject to subsection (c), hold the emission allowance; and (3) request that the Administrator retire the emission allowance. (b) Banking An emission allowance may be used to comply with section 716 for emissions in— (1) the vintage year for the emission allowance; or (2) any calendar year subsequent to the vintage year for the emission allowance. (c) Holding limit Beginning after compliance period 1, a covered entity may retain emission allowances issued for vintage years in previous compliance periods representing no more than 100 percent of the total quantity of greenhouse gas emissions and attributable greenhouse gas emissions, in combination, of the covered entity during the preceding compliance period. (d) No restriction on transactions The privilege of purchasing, holding, selling, exchanging, transferring, and requesting retirement of emission allowances may not be restricted to covered entities, except as otherwise provided in this title. 720. Auction procedures (a) In general For each calendar year for which the Administrator establishes emission allowances under section 715, the Administrator shall auction emission allowances in accordance with the following: (1) Frequency; first auction Auctions shall be conducted quarterly, with the first auction to be conducted not later than March 31, 2026. (2) Auction schedule; current and future vintages The Administrator— (A) at each quarterly auction under this section, shall offer both a portion of the emission allowances for the same vintage year as the year in which the auction is being conducted and a portion of the emission allowances for future vintage years; (B) may offer at any auction under this section emission allowances for vintage years of up to 6 years after the year in which the auction is being conducted; and (C) during a vintage year, shall make available for auction not less than 50 percent of the emission allowances established under section 715 for the vintage year, including any such emissions allowances— (i) auctioned on consignment pursuant to section 721; or (ii) made available for auction from the emissions containment reserve. (3) Auction format Auctions shall follow a single-round, sealed-bid, uniform price format. (4) Participation; financial assurance Auctions shall be open to any person, except that the Administrator may establish financial assurance requirements to ensure that auction participants will perform on their bids. (5) Disclosure of beneficial ownership Each bidder in an auction shall be required to disclose the person or entity sponsoring or benefiting from the bidder’s participation in the auction if such person or entity is, in whole or in part, other than the bidder. (6) Purchase limits No person may, directly or in concert with one or more other participants, purchase more than 5 percent of the emission allowances offered at any quarterly auction. (7) Publication of information After an auction, the Administrator shall, in a timely fashion, publish the identities of winning bidders, the quantity of emission allowances obtained by each winning bidder, and the auction clearing price determined by the Administrator. (b) Regulations (1) Initial regulations Not later than 12 months after the date of enactment of this title, the Administrator, in consultation with other Federal agencies, as appropriate, shall promulgate regulations governing the auction of emission allowances under this section and section 721. (2) Revised regulations Not earlier than January 1, 2029, the Administrator may, in consultation with other Federal agencies, as appropriate, at any time, revise the initial regulations promulgated under paragraph (1). Such revised regulations need not meet the requirements identified in subsection (a) if the Administrator determines that an alternative auction design would be more effective, taking into account factors including costs of administration, transparency, fairness, and risks of collusion or manipulation. In determining whether and how to revise the initial regulations, the Administrator may not consider maximization of revenues to the Federal Government. (3) Other requirements The Administrator may include in the regulations under this subsection such other requirements or provisions as the Administrator, in consultation with other Federal agencies, as appropriate, considers appropriate to promote effective, efficient, transparent, and fair administration of auctions. (c) Minimum price The minimum price for any emission allowance auctioned under this section shall be $15 for any auction occurring in calendar year 2026. The minimum price for an emission allowance auctioned under this section for any auction occurring after calendar year 2026 shall be— (1) the minimum price applicable under this subsection for the previous calendar year; plus (2) the dollar amount that is equal to— (A) such minimum price; multiplied by (B) the percent that is the sum of— (i) 5 percent; plus (ii) the percentage change in the Consumer Price Index (for all urban consumers) for the previous calendar year. (d) Cost containment reserve (1) In general The Administrator shall— (A) establish a cost containment reserve; (B) deposit into such reserve emission allowances established pursuant to paragraph (2) and emission allowances described in subsection (e)(4); and (C) make available for auction allowances in such reserve in accordance with paragraph (4). (2) Deposits into reserve (A) Filling the reserve initially The Administrator shall establish, and deposit into the cost containment reserve, a quantity of emission allowances equal to the average annual aggregate quantity of greenhouse gas emissions in calendar years 2022, 2023, and 2024 from equivalent entities described in section 711(d) for the respective calendar years. (B) Refilling the reserve Following any auction under this section, if any emission allowances that were offered at the auction were not purchased, the Administrator shall— (i) deposit a quantity, as determined appropriate by the Administrator, of such emission allowances in the cost containment reserve; and (ii) retire the remaining quantity of such emission allowances. (C) Special rule If any emission allowances established pursuant to subparagraph (A) remain in the cost containment reserve, the Administrator shall retire one such emission allowance for each emission allowance deposited into the reserve under subparagraph (B). (3) Price triggers (A) Annual determination Each calendar year, the Administrator shall set at least two price triggers at which, if the auction clearing price for an auction under this section would meet or exceed the price trigger, the Administrator may offer at such auction emission allowances from the cost containment reserve. (B) Lowest price trigger The Administrator may not set a price trigger under subparagraph (A) for a calendar year that is less than 4 multiplied by the minimum price of an emission allowance for that calendar year under subsection (c). (4) Release of emission allowances If the auction clearing price for an auction conducted under this section meets or exceeds a price trigger set under paragraph (3), the Administrator may, with respect to such a price trigger, offer at such auction up to 5 percent of the emission allowances in the cost containment reserve at the beginning of the calendar year. For any auction under this section, the Administrator may not offer more than 10 percent of the emission allowances in the cost containment reserve. (e) Emissions containment reserve (1) In general The Administrator shall— (A) establish an emissions containment reserve; (B) each calendar year, deposit into such reserve 10 percent of the emission allowances established under section 715 for such calendar year; and (C) make available for auction emission allowances in such reserve pursuant to paragraph (3). (2) Price triggers (A) Annual determination Each calendar year, the Administrator shall set at least two price triggers at which, if the auction clearing price for an auction under this section would meet or exceed the price trigger, the Administrator will make available for auction emission allowances from the emissions containment reserve. (B) Lowest price trigger The Administrator may not set a price trigger under subparagraph (A) for a calendar year that is less than 125 percent of the minimum price of an emission allowance for that calendar year under subsection (c). (3) Release of emission allowances At any auction under this section, the Administrator— (A) may not offer more than 25 percent of the emission allowances deposited into the emissions containment reserve for the respective calendar year at any of the auctions under this section in such calendar year; and (B) for each price trigger met or exceeded by the auction clearing price, the Administrator may offer up to 12.5 percent of the emission allowances deposited into the emissions containment reserve for the respective calendar year. (4) Allowances not purchased At the end of each calendar year, any emission allowance in the emissions containment reserve offered but not purchased at auction may be deposited into the cost containment reserve pursuant to subsection (d)(2)(B). (f) Public auction information Prior to the first auction under this section each calendar year, the Administrator shall publish the following: (1) The minimum price for an emission allowance for such calendar year under subsection (c). (2) The number of emission allowances of each vintage year to be offered at each auction in such calendar year. (3) The number and dollar amounts of the price triggers for such calendar year for the cost containment reserve established under subsection (d). (4) The number and dollar amounts of the price triggers for such calendar year for the emissions containment reserve established under subsection (e). (5) Any additional information determined to be appropriate by the Administrator. (g) Delegation or contract The Administrator may by delegation or contract provide for the conduct of auctions under this section under the Administrator’s supervision— (1) by other departments or agencies of the Federal Government; or (2) by nongovernmental agencies, groups, or organizations. 721. Consignment auctions (a) Voluntary consignment Any entity holding emission allowances may request that the Administrator make available for auction under section 720 the emission allowances on consignment. (b) Mandatory consignment (1) Conditional allocations Before any emission allowance allocated under subsection (a) or (b) of section 722 (including any emission allowance transferred to a covered entity pursuant to section 722(a)(3)(B) or section 722(a)(6)(B)(ii)) may be sold, further transferred, retired, or used to demonstrate compliance under section 716, such emission allowance shall be made available for auction on consignment pursuant to this section and section 720. (2) Transparency The Administrator shall publish— (A) the names of entities holding emission allowances that are made available for auction on consignment pursuant to paragraph (1); (B) the quantities of emission allowances that are so made available for auction; and (C) any additional information relating to emission allowances that are so made available for auction, as determined by the Administrator. (c) Proceeds Notwithstanding section 3302 of title 31, United States Code— (1) the Federal Government shall, not later than 90 days after receipt of the proceeds from any auction on consignment pursuant to subsection (b)(1), transfer such proceeds to the entity that requested the Administrator offer the respective emission allowances at an auction under section 720; and (2) no such proceeds shall be held by any officer or employee of the United States or treated for any purpose as public monies. (d) Unsold emission allowances The Administrator shall return to the entity offering an emission allowance at auction on consignment pursuant to this section any such allowance that is not sold at the auction. 722. Allocation of emission allowances (a) For the benefit of consumers (1) In general Beginning with vintage year 2026, the Administrator shall allocate emission allowances established each calendar year under section 715(a) to States and Indian Tribes in the following amounts: (A) For compliance period 1, 30 percent of the emission allowances established for each year of such compliance period under section 715(a). (B) For compliance period 2, 27 percent of the emission allowances established for each year of such compliance period under section 715(a). (C) For compliance period 3, 24 percent of the emission allowances established for each year of such compliance period under section 715(a). (D) For compliance period 4, 21 percent of the emission allowances established for each year of such compliance period under section 715(a). (E) For compliance period 5, 18 percent of the emission allowances established for each year of such compliance period under section 715(a). (F) For compliance period 6, 15 percent of the emission allowances established for each year of such compliance period under section 715(a). (G) For compliance period 7, 12 percent of the emission allowances established for each year of such compliance period under section 715(a). (H) For compliance period 8, 9 percent of the emission allowances established for each year of such compliance period under section 715(a). (I) For compliance period 9, 6 percent of the emission allowances established for each year of such compliance period under section 715(a). (J) For compliance period 10, 3 percent of the emission allowances established for each year of such compliance period under section 715(a). (K) For each subsequent compliance period, 0 percent of the emission allowances established for each year of such compliance periods under section 715(a). (2) Distribution Not later than December 31 of each year, the Administrator shall distribute among States and Indian Tribes the quantity of emission allowances allocated under paragraph (1) for the following vintage year, ratably based on the ratio of— (A) the aggregate quantity of greenhouse gases emitted within a jurisdiction in the second preceding vintage year associated with the combustion of fuels for— (i) electricity generation; and (ii) residential and commercial end uses of fuels, excluding end uses related to transportation; to (B) the aggregate quantity of greenhouse gases emitted within the United States in the second preceding vintage year associated with the combustion of fuels for— (i) electricity generation; and (ii) residential and commercial end uses of fuels, excluding end uses related to transportation. (3) Use of emission allowances States and Indian Tribes shall— (A) sell, on consignment in accordance with section 721, the emission allowances allocated under this subsection and use the proceeds of such sales exclusively for the benefit of consumers of electricity and residential and commercial end users of fuels by carrying out a— (i) cost-effective energy efficiency program to reduce the use of electricity and fuel; (ii) rebate or other financial incentive program to encourage adoption and use of low-emission fuel alternatives, which may include a program that provides for electrification; or (iii) rebate or other direct financial assistance program, which may include a low-income ratepayer assistance program; or (B) transfer, on a nonreimburseable basis, such emission allowances to one or more covered entities responsible for greenhouse gas emissions or attributable greenhouse gas emissions within the jurisdiction of the State or Indian Tribe to be used by such entities exclusively for the benefit of consumers of electricity and residential and commercial end users of fuels. (4) Administrative expenses States and Indian Tribes may use up to 5 percent of the proceeds from the sale of emission allowances allocated under this subsection for administrative purposes in carrying out programs under paragraph (3). (5) Reporting Each State and Indian Tribe receiving emission allowances under this subsection shall submit to the Administrator, not later than 12 months after each receipt of such emission allowances, a report, in accordance with such requirements as the Administrator may prescribe, that— (A) describes the use of emission allowances sold or transferred under paragraph (3), including a description of the energy efficiency, fuel switching, and consumer assistance programs supported pursuant to paragraph (3); (B) includes an evaluation, prepared by an independent third party, of the performance of the energy efficiency, fuel switching, and consumer assistance programs supported pursuant to paragraph (3); and (C) describes any transfer of emission allowances to covered entities under paragraph (3)(B). (6) Enforcement If the Administrator determines a State or Indian Tribe is not in compliance with this subsection, the Administrator may— (A) (i) withhold a portion of emission allowances under this subsection that would otherwise be distributed to the State or Indian Tribe for the next vintage year; and (ii) distribute such withheld emission allowances among the remaining States and Indian Tribes ratably in accordance with the formula under paragraph (2); or (B) (i) withhold a portion of emission allowances under this subsection that would otherwise be distributed to the State or Indian Tribe for the next vintage year; and (ii) directly transfer, on a nonreimburseable basis, such withheld emission allowances to one or more covered entities responsible for greenhouse gas emissions or attributable greenhouse gas emissions within the jurisdiction of such State or Indian Tribe to be used by such entities exclusively for the benefit of consumers as described in paragraph (3)(A). (b) Energy-Intensive, Trade-Exposed Industries (1) In general Beginning with vintage year 2026, the Administrator shall allocate emission allowances to eligible industry sectors designated and listed under section 723(a)(1), to be distributed in accordance with section 723, in the following amounts: (A) For compliance periods 1 and 2, 15 percent of the emission allowances established for each year of such compliance periods under section 715(a). (B) For compliance periods 3 and 4, 12 percent of the emission allowances established for each year of such compliance periods under section 715(a). (C) For compliance periods 5 and 6, 9 percent of the emission allowances established for each year of such compliance periods under section 715(a). (D) For compliance periods 7 and 8, 6 percent of the emission allowances established for each year of such compliance periods under section 715(a). (E) For compliance periods 9 and 10, 3 percent of the emission allowances established for each year of such compliance periods under section 715(a). (F) For each subsequent compliance period, 0 percent of the emission allowances established for each year of such compliance periods under section 715(a). (2) Carryover After the Administrator distributes emission allowances pursuant to section 723 for any vintage year, any emission allowances allocated to eligible industry sectors designated and listed under section 723(a)(1) pursuant to this subsection that have not been so distributed shall— (A) remain available for distribution pursuant to section 723 for the following vintage year; and (B) be treated as part of the allocation to such entities for that following vintage year. (c) Low-Income Consumers Beginning with vintage year 2026, the Administrator shall make available for auction, pursuant to section 720, 15 percent of the emission allowances established for each year under section 715(a). The proceeds from such auction shall be made available to the Secretary of the Treasury to provide rebates under section 102 of the Climate Pollution Standard and Community Investment Act of 2024 . (d) State, territorial, and Tribal governments Beginning with vintage year 2026, the Administrator shall make available for auction, pursuant to section 720, 10 percent of the emission allowances established for each year under section 715(a), with the proceeds distributed to States and Indian Tribes pursuant to section 724. (e) Local governments Beginning with vintage year 2026, the Administrator shall make available for auction, pursuant to section 720, 5 percent of the emission allowances established for each year under section 715(a). The proceeds from such auction shall be made available to the Secretary of Energy to carry out subtitle E of title V of the Energy Independence and Security Act of 2007. (f) Jurisdictions Hosting High-Level Nuclear Waste (1) In general Beginning with vintage year 2026, the Administrator shall make available for auction, pursuant to section 720, 0.5 percent of the emission allowances established for each year under section 715(a), with the proceeds provided to each State and Indian Tribe for which a repository where high-level radioactive waste and spent nuclear fuel are permanently disposed of is located within the jurisdiction of the State or Indian Tribe. (2) No eligible State or Indian Tribe If no State or Indian Tribe is eligible to be provided proceeds under this subsection with respect to a vintage year, such proceeds shall be provided to States and Indian Tribes pursuant to section 724. (3) Multiple States or Indian Tribes If more than one State or Indian Tribe is eligible for proceeds under this subsection with respect to a vintage year, such proceeds shall be distributed ratably among such States and Indian Tribes based on the ratio of— (A) the mass of high-level radioactive waste and spent nuclear fuel permanently disposed of within the jurisdictions of the respective States or Indian Tribes; relative to (B) the mass of high-level radioactive waste and spent nuclear fuel permanently disposed of in the United States. (g) Worker and community assistance (1) In general Beginning with vintage year 2026, the Administrator shall make available for auction, pursuant to section 720, 5 percent of the emission allowances established for each year under section 715(a), with the proceeds deposited into the Worker and Community Assistance Fund established under section 103 of the Climate Pollution Standard and Community Investment Act of 2024 . (2) Determination of additional revenues needed For any year, the Administrator, in consultation with the Secretary of the Treasury, the Secretary of Labor, and the Director of the Office of Energy and Economic Transition as established by section 203 of the Climate Pollution Standard and Community Investment Act of 2024 — (A) may determine that additional revenue is necessary to carry out sections 206, 207, and 208 of the Climate Pollution Standard and Community Investment Act of 2024 ; and (B) if emission allowances are available and upon a determination under subparagraph (A), may offer at an auction pursuant to section 720, in addition to the emission allowances made available for auction pursuant to paragraph (1), up to 5 percent of emissions allowances established for such year under section 715(a), with the proceeds deposited into the Worker and Community Assistance Fund established under section 103 of the Climate Pollution Standard and Community Investment Act of 2024 . (h) Frontline communities Beginning with vintage year 2026, the Administrator shall make available for auction, pursuant to section 720, 10 percent of the emission allowances established for each year under section 715(a), with the proceeds deposited into the Cleaner Air Community Fund established under section 104 of the Climate Pollution Standard and Community Investment Act of 2024 . (i) Negative emissions activities The Administrator shall make available for auction, pursuant to section 720, emission allowances established for each year under section 715(a), with the proceeds deposited into the Negative Emissions Activities Fund established under section 105 of the Climate Pollution Standard and Community Investment Act of 2024 , in the following amounts: (1) For compliance periods 1 and 2, 2.5 percent of the emission allowances established for each year of such compliance periods under section 715(a). (2) For compliance periods 3 and 4, 5 percent of the emission allowances established for each year of such compliance periods under section 715(a). (3) For compliance periods 5 and 6, 7.5 percent of the emission allowances established for each year of such compliance periods under section 715(a). (4) For compliance periods 7 and 8, 10 percent of the emission allowances established for each year of such compliance periods under section 715(a). (5) For compliance periods 9 and 10, 15 percent of the emission allowances established for each year of such compliance periods under section 715(a). (6) For each subsequent compliance period, 20 percent of the emission allowances established for each year of such compliance period under section 715(a). (j) Energy Innovation Fund Beginning with vintage year 2026, the Administrator shall make available for auction, pursuant to section 720, 2.5 percent of the emission allowances established for each year under section 715(a), with the proceeds deposited into the Energy Innovation Fund established under section 106 of the Climate Pollution Standard and Community Investment Act of 2024 . 723. Output-based distributions for energy-intensive, trade-exposed industries (a) Designation of eligible industrial sectors (1) In general The Administrator shall— (A) designate (using the six-digit classification system of the North American Industrial Classification System of 2002 or a superseding classification system) eligible industrial sectors based on the criteria described in paragraph (3); and (B) maintain a list of such eligible industrial sectors. (2) Eligible industrial sector list (A) Initial list Not later than June 30, 2025, the Administrator shall publish in the Federal Register a list of eligible industrial sectors designated under this subsection. (B) Subsequent lists Not later than June 30, 2031, and not less than every 6 years thereafter, the Administrator shall publish in the Federal Register an updated version of the list published under subparagraph (A). (3) Eligibility criteria (A) In general To be designated as an eligible industrial sector under this subsection, an industrial sector shall meet the criteria in— (i) both subparagraphs (B) and (C); or (ii) subparagraph (D). (B) Energy or greenhouse gas intensity An industrial sector meets the criteria in this subparagraph if the sector has— (i) an energy intensity of at least 5 percent, calculated by dividing— (I) the cost of purchased electricity and fuel of such sector; by (II) the value of the shipments of such sector; or (ii) a greenhouse gas intensity of at least 5 percent, calculated by dividing— (I) the number of tons of greenhouse gas emissions (including direct emissions from fuel combustion, process emissions, and indirect emissions from the generation of electricity used to produce the output of the sector) of such sector, multiplied by 20; by (II) the value of the shipments of such sector. (C) Trade intensity An industrial sector meets the criteria in this subparagraph if the sector has a trade intensity of at least 15 percent, calculated by dividing— (i) the value of the imports and exports of such sector; by (ii) the sum of the value of the shipments and the value of imports of such sector. (D) Very high energy or greenhouse gas intensity An industrial sector meets the criteria in this subparagraph if the sector has— (i) an energy intensity of at least 20 percent, as calculated under subparagraph (B)(i); or (ii) a greenhouse gas intensity of at least 20 percent, as calculated under subparagraph (B)(ii). (4) Use of data When determining the eligibility of an industrial sector, or a subgroup of entities within an industrial sector, under this subsection— (A) the Administrator shall use the average annual data for the most recent 4 years for which such data are available; (B) if data are unavailable for any industrial sector at the six-digit classification level referred to in paragraph (1)(A), the Administrator may extrapolate the information necessary to determine the eligibility of a sector from available data pertaining to a broader industrial category classified in— (i) the North American Industrial Classification System of 2002; or (ii) a superseding classification system; (C) the Administrator may request any additional information, as determined necessary by the Administrator, from any owner or operator of an entity in a potentially eligible industrial sector; and (D) the Administrator shall seek information from the owner or operator of an entity in a potentially eligible industrial sector that produces more than one product at a facility in order to attribute energy usage and greenhouse gas emissions associated with the production of each product type. (5) Listing of subgroups as an eligible industrial sector (A) Designation of subgroups The Administrator may, pursuant to paragraph (1), designate and list a subgroup of entities within an industrial sector as a separate eligible industrial sector if the subgroup of entities meets the eligibility criteria in paragraph (3)(A) for designation as an eligible industrial sector. (B) Determination In determining under paragraph (3)(A) whether a subgroup of entities meets the criteria under subparagraphs (B) and (C) or (D) of such paragraph, the Administrator shall consider— (i) the energy intensity, greenhouse gas intensity, and trade intensity of the industrial sector represented by such subgroup of entities; and (ii) the products manufactured by the subgroup and not the industrial process by which such products are manufactured, except that the Administrator may determine a subgroup of entities that manufacture a product primarily from virgin material to be listed as a separate eligible industrial sector from another subgroup of entities that manufacture the same product primarily from recycled material. (6) Individual petition for eligibility (A) Petition The owner or operator of an entity in an industrial sector may petition the Administrator to designate, pursuant to paragraph (5), one or more entities in such industrial sector as an eligible industrial sector. (B) Final action Not later than 6 months after the receipt of a petition under subparagraph (A), the Administrator shall take final action on such petition. (7) Special cases (A) Iron and steel sector For purposes of this section, the Administrator shall consider as being in different industrial sectors— (i) entities using integrated iron and steelmaking technologies (including coke ovens, blast furnaces, and other ironmaking technologies); and (ii) entities using electric arc furnace technologies. (B) Metal, soda ash, or phosphate production classified under more than one NAICS code For purposes of this section, the Administrator— (i) may not aggregate data for the beneficiation or other processing (including agglomeration) of metal ores, soda ash, or phosphate with subsequent steps in the process of metal, soda ash, or phosphate manufacturing; (ii) shall consider the beneficiation or other processing (including agglomeration) of metal ores, soda ash, or phosphate to be in separate industrial sectors from the metal, soda ash, or phosphate manufacturing sectors; and (iii) shall treat industrial sectors that beneficiate or otherwise process (including agglomeration) metal ores, soda ash, or phosphate as ineligible to receive emission allowances under this section related to the activity of extracting metal ores, soda ash, or phosphate. (C) Petroleum refining Industrial sectors that refine petroleum products may not be designated and listed as an eligible industrial sector under this section. (b) Output-Based Allocation Benchmarks (1) In general The Administrator shall determine the average greenhouse gas emissions per unit of output for each eligible industrial sector designated and listed under subsection (a)(1) (referred to in this subsection as the output-based allocation benchmark for such sector). (2) Calculating benchmark (A) In general The Administrator shall calculate the output-based allocation benchmark for each eligible industrial sector based on the greenhouse gas emissions, including direct emissions, process emissions, and indirect emissions, expressed in tons of carbon dioxide equivalent, per unit of output, for such eligible industrial sector using an average of the 3 most recent years of the best available data for such eligible industrial sector. (B) Calculating indirect emissions Each person selling electricity to the owner or operator of an entity in an eligible industrial sector shall— (i) provide the owner or operator of the entity and the Administrator relevant greenhouse gas emissions data for such entity; and (ii) where it is not possible to determine the precise indirect greenhouse gas emissions for such entity, use the monthly average data reported by the Energy Information Administration or collected and reported for the electric utility serving the entity to determine greenhouse gas emissions. (C) Multiple eligible industrial sectors at one facility The Administrator shall seek information from the owner or operator of an entity in an eligible industrial sector that produces more than one product at a facility in order to attribute energy usage and greenhouse gas emissions associated with the production of each product type at such facility. (3) Data sources For the purposes of this subsection, the Administrator— (A) shall use data— (i) reported to the Environmental Protection Agency; (ii) reported to other Federal agencies; and (iii) from each owner or operator of an entity in an eligible industrial sector; and (B) may require an owner or operator of an entity in an eligible industrial sector to provide such information as the Administrator finds necessary to determine the output-based allocation benchmark for such eligible industrial sector. (c) Distribution of emission allowances (1) In general For each vintage year, the Administrator shall— (A) distribute pursuant to this section emission allowances allocated under section 722(b), not later than October 31 of the preceding calendar year; and (B) make such annual distributions to the owner or operator of each entity responsible for output in an eligible industrial sector listed under subsection (a) in the amount of emission allowances calculated under this subsection. (2) Assistance factor For the purpose of distributing emission allowances under this subsection, the Administrator shall use the following (referred to in this subsection as an assistance factor ): (A) For compliance period 1, 1.0. (B) For compliance period 2, 0.9. (C) For compliance period 3, 0.8. (D) For compliance period 4, 0.7. (E) For compliance period 5, 0.6. (F) For compliance period 6, 0.5. (G) For compliance period 7, 0.4. (H) For compliance period 8, 0.3. (I) For compliance period 9, 0.2. (J) For compliance period 10, 0.1. (K) For each subsequent compliance period, 0. (3) Amount of emission allowances The amount of emission allowances to be distributed to the owner or operator of an entity in an eligible industrial sector shall be calculated by— (A) the output-based allocation benchmark calculated pursuant to subsection (b) of the industrial sector of such entity; multiplied by (B) the average annual output of such entity for the 2 years preceding the year of the distribution; multiplied by (C) the appropriate assistance factor under paragraph (2). (4) New entities Not later than 24 months after the date of enactment of this title, the Administrator shall issue regulations governing the distribution of emission allowances for the first 4 years of operation of a new entity in an eligible industrial sector. These regulations shall provide for— (A) the distribution of emission allowances to such entities based on comparable entities in the same eligible industrial sector; and (B) an adjustment in the third and fourth years of operation to reconcile the total amount of emission allowances received during the first 4 years of operation of the new entity to the amount the entity would have received during such years of operation had the appropriate data been available for the first and second years of operation. (d) Total maximum distribution The Administrator may not distribute more emission allowances for any vintage year pursuant to this section than are allocated for use pursuant to section 722(b) for that vintage year. For any vintage year for which the total emission allowances calculated for distribution pursuant to this section would exceed the number of emission allowances allocated pursuant to section 722(b), the Administrator shall reduce each entity’s distribution on a pro rata basis so that the total distribution of emission allowances under this section equals the number of emission allowances allocated under section 722(b). (e) Cessation of qualifying activities If, as determined by the Administrator, an entity is no longer in an eligible industrial sector— (1) the Administrator may not distribute emission allowances to the owner or operator of such entity under this section; and (2) the owner or operator of such entity shall return to the Administrator— (A) all emissions allowances that have been distributed under this section to the owner or operator for future vintage years; and (B) a prorated amount of emission allowances distributed under this section for the vintage year in which the entity ceases to be in an eligible industrial sector. 724. Assistance to State, territorial, and tribal governments (a) In general The Administrator shall annually distribute to States and Indian Tribes the proceeds of emission allowances auctioned pursuant to section 722(d). Such proceeds shall be used by States and Indian Tribes to provide financial assistance and incentives in accordance with subsection (e) that support the reduction of air pollution, including criteria air pollutants, hazardous air pollutants, and emissions of greenhouse gases, or promote adaptation to climate change. (b) Regulations Not later than 24 months after the date of enactment of this section, the Administrator shall promulgate regulations to carry out this section, including regulations— (1) to ensure that each State and Indian Tribe provides financial assistance and incentives efficiently and in accordance with this section and applicable Federal laws; (2) to prevent waste, fraud, and abuse; (3) to identify the forms of financial assistance and incentives that States and Indian Tribes may provide; and (4) to prescribe the form and content of reports that States and Indian Tribes are required to submit under this section. (c) Intended use plans (1) In general After providing for public review and comment, each State and Indian Tribe receiving proceeds under this section shall annually prepare a plan that identifies the intended uses of such proceeds. (2) Contents An intended use plan prepared under paragraph (1) shall include— (A) a list of the projects or programs intended to be funded in the next fiscal year that begins after the date of the plan, including a description of each project or program; and (B) additional information as determined appropriate by the Administrator. (d) Distribution among States and Indian Tribes (1) In general Not later than September 30 of each calendar year, the Administrator shall, in accordance with this section, distribute the proceeds of emission allowances auctioned pursuant to section 722(d) each year in accordance with the following formula: (A) 25 percent shall be divided equally among the States. (B) 50 percent of the emission allowances shall be distributed ratably among the States and Indian Tribes based on the population of each State and Indian Tribe, as contained in the most recent census data available from the Bureau of the Census at the time the Administrator calculates the formula for distribution. (C) 25 percent shall be distributed ratably among the States and Indian Tribes on the basis of the energy consumption of each State and Indian Tribe as contained in the most recent State Energy Data System report of the Energy Information Administration (or such alternative reliable source as the Administrator may designate). (2) Minimum amounts for Indian Tribes The Administrator shall ensure that not less than 5 percent of the total proceeds distributed to States and Indian Tribes in each calendar year is distributed to Indian Tribes. (3) Recalculation of distribution amounts The Administrator shall recalculate the amounts to be distributed as determined by the formula in paragraph (1) not less frequently than once every 5 years. (e) Uses The proceeds distributed to each State and Indian Tribe pursuant to this section may be used to provide grants, tax credits, production incentives, loans, loan guarantees, forgivable loans, interest rate buydowns, and other types of financial assistance and incentives that support or promote the following: (1) Zero-emission electricity generation, including— (A) research, development, and demonstration of zero-emission electricity generation projects; and (B) deployment of community-scale, low-income, and distributed generation zero-emission electricity generation projects. (2) Energy storage projects. (3) Energy efficiency programs. (4) Grid modernization, including support for integration of renewable energy resources and distributed generation, demand response, demand side management, and systems analysis. (5) Deployment of zero-emission vehicles, including light-, medium-, and heavy-duty vehicles. (6) Charging, refueling, and grid infrastructure enhancement to support zero-emission vehicles. (7) Design, construction, and maintenance to improve the resilience of existing and new infrastructure, including public health infrastructure, to the impacts of climate change, including wildfires, drought, flooding, and other extreme weather events. (8) Electrification of residential and commercial products that reduces demand for natural gas, heating oil, gasoline, diesel fuel, or propane. (9) Wildlife and natural resource adaptation, including— (A) protection, maintenance, or restoration of natural infrastructure such as wetlands, reefs, and barrier islands; (B) conservation or maintenance of public lands; (C) protection and restoration of watersheds; (D) floodplain restoration and flood protection in densely populated urban areas; and (E) mitigation of ocean-related climate change effects, including effects on bays, estuaries, populated barrier islands, and other ocean-related features. (10) Sustainable agricultural programs, including promotion of soil health. (11) Food waste reduction programs. (12) Sustainable forest management and land use programs. (13) Reduction, capture, and use of methane from landfills and wastewater treatment facilities. (14) Material conservation programs. (15) Providing the non-Federal share of the cost of surface transportation capital projects that support public transportation and transit programs, including support for bike lanes and pathways, pedestrian pathways, and bike share programs provided that not more than 10 percent of assistance distributed to each State and Indian Tribe pursuant to this section shall be used for such purposes. (16) Construction, expansion, and retooling of facilities that manufacture components for clean energy technology systems. (17) Installation, retrofit, or conversion of equipment to enable manufacturing facilities to manufacture zero- or low-emission energy-intensive industrial products. (18) Any other program, including a State program, that reduces air pollution, deploys clean energy or energy efficient technologies, or enhances the resilience of infrastructure, as determined by the Administrator. (f) Administrative costs Not more than 5 percent of the proceeds distributed to States and Indian Tribes in any year may be used for the purposes of administrative expenses. (g) Maintenance of effort A State or Indian Tribe’s use of proceeds distributed by this section shall include assurances that the State or Indian Tribe will maintain support for existing activities carried out by such State or Indian Tribe in future years at least at the levels of such support that is the average of such State or Indian Tribe’s support for such programs in the 3 years preceding the date of enactment of this section. The Administrator may waive the requirement in this subsection for the purpose of relieving fiscal burdens on States and Indian Tribes that have experienced a precipitous decline in financial resources. (h) Assistance to disadvantaged and rural communities Not less than 50 percent of funding distributed to each State and Indian Tribe shall be used to provide assistance to activities located within disadvantaged or rural communities, as determined by the Administrator. (i) Reporting Each State and Indian Tribe shall submit to the Administrator a report every 2 years on the use of proceeds received under this section in accordance with such requirements as the Administrator may prescribe. (j) Enforcement If the Administrator determines that a State or Indian Tribe is not in compliance with this section, the Administrator may withhold proceeds that are otherwise to be distributed to such State or Indian Tribe. Proceeds withheld pursuant to this subsection may be distributed among the remaining States and Indian Tribes in accordance with the formula determined pursuant to subsection (d). 725. Program review The Administrator shall— (1) in conjunction with the establishment of emission allowances under section 715(c)(2) for a compliance period, conduct a review of the implementation of this title; (2) in conducting each such review, seek public comment; and (3) upon completion of each such review, submit to Congress a report with the results of such review, including recommendations, if any, for legislation or administrative actions appropriate to achieve the targets under section 711(a) and the reductions under section 711(b). 726. Advisory board (a) Establishment The Administrator shall establish an advisory board to provide independent advice and recommendations to the Environmental Protection Agency with respect to the administration of this title. (b) Membership The advisory board shall be composed of members representing— (1) community-based organizations, including such organizations that carry out initiatives relating to environmental justice; (2) State governments; (3) Tribal Governments; (4) local governments; (5) labor organizations; (6) nongovernmental and environmental organizations; (7) agricultural organizations; (8) private sector organizations, including representatives of industries and businesses required to comply with the requirements of this title; and (9) experts in the field of— (A) socioeconomic analysis; (B) health and environmental effects; (C) pollution monitoring and exposure evaluation; (D) environmental law and civil rights law; (E) environmental health science research; or (F) agricultural science research. (c) FACA Chapter 10 of title 5, United States Code (commonly known as the Federal Advisory Committee Act), shall apply to the advisory board. C Emissions Reductions in Every Community 731. Definitions In this part: (a) Cleaner Air Community The term Cleaner Air Community means a community designated as a Cleaner Air Community under section 733. (b) Cleaner Air Community Fund The term Cleaner Air Community Fund means the fund established under section 104 of the Climate Pollution Standard and Community Investment Act of 2024 . (c) Community The term community means a county, municipality, town, township, village, parish, borough, or other unit of general government below the State level. 732. Use of funds from the Cleaner Air Community Fund (a) In general (1) Assistance Beginning in 2027 and each year thereafter, the Administrator shall provide assistance pursuant to this section using amounts made available in the Cleaner Air Community Fund. (2) Priority In providing assistance pursuant to this section using amounts made available in the Cleaner Air Community Fund, the Administrator shall prioritize providing assistance to communities designated as a Cleaner Air Community under section 733. (b) Environmental and climate justice block grants The Administrator is authorized to use amounts made available in the Cleaner Air Community Fund to award grants and provide technical assistance under section 138. (c) Enhanced air pollution monitoring (1) In general The Administrator is authorized to award grants using amounts made available in the Cleaner Air Community Fund to local and State governments, Indian Tribes, air pollution control agencies, and other public or nonprofit private agencies, institutions, and organizations with appropriate technical capacity to support additional emissions monitoring in disadvantaged communities, as determined by the Administrator. (2) Applications To be eligible to receive a grant under this subsection, an entity described in paragraph (1) shall submit an application to the Administrator at such time, in such form, and containing such information and assurances as the Administrator may require. (3) Prioritization of use of funds The Administrator shall prioritize awarding grants under this subsection to entities that propose, in an application submitted under paragraph (2), to use grants to— (A) improve the reporting, monitoring, and enforcement of the requirements of this title; (B) improve air quality monitoring, including by the use of hyperlocal air monitoring equipment and techniques, in locations determined by the Administrator to have insufficient monitoring equipment and capabilities; or (C) inform management decisions, such as the placement or relocation of stationary air pollution monitors, transportation or land use planning, investments in mitigating air pollution sources, and other planning decisions, by relevant local, State, and Tribal governments. (d) Development of emissions reduction plans (1) In general The Administrator is authorized to award grants and provide technical assistance using amounts made available in the Cleaner Air Community Fund to local and State governments, Indian Tribes, air pollution control agencies, and other public or nonprofit private agencies, institutions, and organizations that are located in a Cleaner Air Community to develop multiyear plans to reduce air pollution in such community. (2) Plan contents A plan developed under paragraph (1) shall include— (A) a proposal to develop effective and practical processes, methods, and devices to reduce, prevent, or control air pollution, including greenhouse gas emissions, within a Cleaner Air Community; and (B) a description of the expected use of funds to develop such proposals. (3) Community engagement Any entity receiving a grant to develop a multi-year plan under paragraph (1) shall demonstrate sufficient community engagement with local residents in the development of a plan. (e) Implementation of emissions reduction plans The Administrator is authorized to award grants using amounts made available in the Cleaner Air Community Fund to local and State governments, Indian Tribes, air pollution control agencies, and other public or nonprofit private agencies, institutions, and organizations that received a grant and developed a plan under subsection (d)— (1) if the Administrator determines such entity demonstrated sufficient community engagement with local residents in the development of the plan; and (2) for purposes of implementing the plan. (f) Community-Based Health Services in Cleaner Air Communities The Administrator, in consultation with the Secretary of Health and Human Services, is authorized to award grants using amounts made available in the Cleaner Air Community Fund to local and State governments, Indian Tribes, air pollution control agencies, and other public or nonprofit private agencies, institutions, and organizations, which shall be used to— (1) support community-based health centers, health monitoring, and other health care services located in a Cleaner Air Community; and (2) address the health impacts of individuals who reside or work in a Cleaner Air Community. 733. Cleaner Air Communities (a) Designation of cleaner air communities Beginning after compliance period 1, the Administrator shall designate, for a period of 5 years, communities as Cleaner Air Communities in accordance with this section. (b) Eligibility A community shall be eligible to be designated as a Cleaner Air Community under subsection (a) if the community, or a census tract within such community, experiences an increase of emissions of any greenhouse gas, hazardous air pollutant, or criteria air pollutant on an annual basis over the average annual quantity of emissions of the pollutant during the previous compliance period. (c) Petition for designation Any person may petition the Administrator to designate a community as a Cleaner Air Community under subsection (a). (d) Consideration of petition The Administrator shall review a petition under subsection (c) and make a determination on such petition not later than 1 year after receiving such petition. (e) Redesignation of Cleaner Air Communities Not later than 4 years after a community is designated as a Cleaner Air Community, the Administrator shall determine whether to extend the designation of the community as a Cleaner Air Community for another 5-year period beginning at the end of the last year during which that community experienced an increase of pollutants as described in subsection (b). 734. Annual report to Congress Beginning in 2027, not later than 180 days after the end of each year, the Administrator shall submit to Congress a report for the previous year, which shall include— (1) a description of each grant awarded and the technical assistance provided under this part or section 138 pursuant to this part; (2) the amount of funding that remains available in the Cleaner Air Community Fund; (3) an assessment of the air quality monitoring needs of disadvantaged communities, as determined by the Administrator, including a determination whether additional air quality monitoring is necessary to determine the eligibility of communities to be designated as Cleaner Air Communities; and (4) an assessment of the air quality and public health of Cleaner Air Communities and efforts to reduce air pollution in such communities. 735. Regulations The Administrator shall issue any regulations necessary to implement this part not later than 36 months after the date of enactment of this part. D Negative Emissions Activities 741. Definitions In this part: (1) Beginning producer The term beginning producer means an individual that— (A) (i) has not operated a farm or ranch; or (ii) has operated a farm or ranch for not more than 10 years; and (B) meets such other criteria as the Administrator, in consultation with the Secretary, may establish. (2) Eligible carbon removal technology (A) In general The term eligible carbon removal technology means any equipment, technique, or technology, placed into service after January 1, 2023, that— (i) captures carbon dioxide directly from ambient air or seawater, as determined appropriate by the Administrator; and (ii) permanently stores such captured carbon dioxide— (I) in a subsurface geologic formation or in materials, including building materials and mineralized carbon materials; or (II) using other permanent storage methods, as determined by the Administrator. (B) Exclusion The term eligible carbon removal technology does not include any equipment, technique, or technology that— (i) captures carbon dioxide which is deliberately released from naturally occurring subsurface springs; or (ii) stores or uses carbon dioxide for enhanced oil recovery. (3) Eligible land (A) In general The term eligible land means land on which agricultural commodities, livestock, or forest-related products are produced. (B) Inclusions The term eligible land includes the following: (i) Cropland. (ii) Grassland. (iii) Rangeland. (iv) Pasture land. (v) Nonindustrial private forest land. (vi) Other agricultural land (including cropped woodland, marshes, environmentally sensitive areas, and agricultural land used for the production of livestock) on which identified or expected resource concerns related to agricultural production could be addressed through a contract under the Program as determined by the Administrator, in consultation with the Secretary. (4) Eligible practice The term eligible practice means an activity included on the list established under section 744(a). (5) High-quality project The term high-quality project means carrying out one or more eligible practices, which result in (as determined by the Administrator) verifiable, permanent, and additional reductions or avoidance of greenhouse gas emissions or sequestration of greenhouse gases. (6) Payment The term payment means financial assistance provided to a producer for performing one or more practices under this part. (7) Producer The term producer means an individual or entity capable of carrying out an eligible practice. (8) Program The term Program means the program established under section 743. (9) Secretary The term Secretary means the Secretary of the Department of Agriculture. (10) Socially disadvantaged producer The term socially disadvantaged producer means a farmer or rancher who is a member of a group whose members have been subjected to racial or ethnic prejudice because of their identity as members of the group without regard to their individual qualities. 742. Purposes The purposes of the Program are to incentivize activities that result in reduction or avoidance of greenhouse gas emissions, or sequestration of greenhouse gases, and to optimize environmental benefits, by— (1) utilizing methodologies, in consultation with the Secretary for agricultural production and forest management practices on eligible land, for each eligible practice type for quantifying and verifying potential and actual reduction and avoidance of greenhouse emissions and sequestration of greenhouse gases; (2) avoiding, to the maximum extent practicable, the need for regulatory programs by assisting producers implementing eligible practices on eligible land in reducing or avoiding greenhouse gas emissions, or sequestering of greenhouse gases in order to achieve economy-wide greenhouse gas emissions reduction targets pursuant to section 702; (3) avoiding or minimizing, to the maximum extent practicable, adverse effects on human health or the environment resulting from the implementation of practices under the Program; (4) assisting producers implementing eligible practices on eligible land with adaptation to changing climatic conditions and mitigating against increasing weather volatility and drought; and (5) enabling the participation of beginning producers and socially disadvantaged producers in the Program. 743. Establishment (a) In general The Administrator, in consultation with the Secretary with respect to agricultural production and forest management practices on eligible land, shall establish a program to enter into contracts with producers to carry out practices using amounts made available in the Negative Emissions Activities Fund. (b) Regulations Not later than 2 years after the date of enactment of this part, the Administrator shall promulgate regulations to carry out this part. 744. Eligible practices (a) List of eligible practices — (1) Listing The Administrator, in consultation with the Secretary with respect to agricultural production and forest management activities on eligible land, shall establish, and may periodically revise, a list of activities that are eligible practices. (2) Requirements The Administrator may include an activity as an eligible practice on the list established under paragraph (1) if the Administrator, in consultation with the Secretary with respect to agricultural production and forest management practices on eligible land, determines the activity can reduce or avoid greenhouse gas emissions or sequester greenhouse gases, consistent with the purposes described in section 742. (3) Modifications to list The Administrator may at any time, by rule, add or remove an activity to or from the list of eligible practices in accordance with paragraph (2). (b) Establishment of initial list In establishing the initial list under subsection (a), the Administrator, in consultation with the Secretary with respect to agricultural production and forest management practices on eligible land, shall give priority to consideration of activities for which there are well developed methodologies for quantifying the reduction or avoidance of greenhouse gas emissions or sequestration of greenhouse gases with such modifications as the Administrator considers appropriate. At a minimum, the initial list prepared under this section shall include the following activities that reduce or avoid greenhouse gas emissions or sequester greenhouse gases: (1) Agricultural, grassland, and rangeland sequestration and management activities on eligible land. (2) Changes in carbon stocks attributed to land use change and forestry activities on eligible land. (3) Manure management and disposal on eligible land. (4) Livestock management on eligible land. (5) Eligible carbon removal technologies. (c) Methodologies (1) Establishment The Administrator, in consultation with the Secretary with respect to agricultural production and forest management practices on eligible land, shall establish for each type of eligible practice a standardized methodology for determining the quantity of reduction or avoidance of greenhouse gas emissions, or sequestration of greenhouse gases, expected to be achieved by the type of eligible practice, including protocols for monitoring, reporting, and verifying performance, and accounting for uncertainty. (2) Preexisting methodologies In establishing a standard methodology for each type of eligible practice under paragraph (1), the Administrator shall consider basing such standard methodology on methodologies that exist as of the date of enactment of this part. 745. Applications (a) In general The Administrator may enter into a contract with a producer under section 746 if— (1) the producer submits to the Administrator an application that proposes to carry out one or more eligible practices; and (2) the Administrator approves such application under this section. (b) Evaluation criteria The Administrator shall develop criteria for evaluating applications submitted under subsection (a), which shall include consideration of the potential quantity and cost effectiveness of reduction or avoidance of greenhouse gas emissions, or sequestration of greenhouse gases, from the proposed eligible practices. (c) Prioritization of applications In evaluating applications submitted under subsection (a), the Administrator shall prioritize approving applications based on— (1) the anticipated quantity of reduction or avoidance of greenhouse gas emissions, or sequestration of greenhouse gases from the proposed eligible practices; (2) the cost to carry out the proposed eligible practices relative to other, similar eligible practices; (3) how effectively and comprehensively the proposed eligible practices are expected to achieve the reduction or avoidance of greenhouse gas emissions, or sequestration of greenhouse gases on eligible land; (4) the inclusion of high-quality projects; and (5) how well the proposed eligible practices fulfill the purposes of the Program. (d) Grouping of applications To the greatest extent practicable, the Administrator shall evaluate applications that propose to carry out the same or similar eligible practices together. (e) Geographic scope The Administrator shall, to the extent practicable, seek to approve applications from a diversity of geographic regions of the United States, taking into account factors such as soil type, cropping history, and water availability. (f) Set aside for use of eligible carbon removal technology The Administrator shall ensure that, each year, not less than 20 percent of the amount provided under contracts entered into under section 746 be provided to carry out eligible practices that use eligible carbon removal technology. (g) Reverse auction (1) In general The Administrator may approve applications submitted under subsection (a) using a reverse auction mechanism to promote the most cost effective means of achieving the anticipated reduction or avoidance of greenhouse gas emissions, or sequestration of greenhouse gases, pursuant to contracts entered into under section 746. (2) Multifactor bidding When using a reverse auction mechanism under paragraph (1), the Administrator may incorporate noncost factors into the auction system, and prioritize approving applications that propose to carry out eligible practices that— (A) maximize the net greenhouse gas emissions reductions; (B) minimize the amount of greenhouse gas emissions released by carrying out the eligible practices; (C) would increase the diversity of types of eligible practices carried out pursuant to section 746; (D) would be carried out in geographically diverse areas; (E) support economic development or job creation in disadvantaged or rural communities, as determined by the Administrator; (F) include robust public engagement and community benefits commitments; (G) provide benefits to beginning producers and socially disadvantaged producers; and (H) include high-quality projects. (h) Third-Party Aggregators The Administrator may, when evaluating applications under this section, approve applications from entities that aggregate eligible practices from multiple producers. 746. Contracts and payments (a) Contracts After approving an application under section 745, the Administrator shall seek to enter into a contract with the producer that submitted the application. (b) Required provisions A contract entered into under subsection (a) shall— (1) require the producer to develop and implement a program plan which— (A) shall be approved by the Administrator, and may include such conditions the Administrator may require; and— (B) shall provide for how the producer will— (i) carry out the eligible practices proposed in the application; (ii) manage, maintain, and improve such eligible practices for the duration of the contract; (iii) provide for the verification of the actual quantity of greenhouse gas emissions reduced or avoided, or greenhouse gases sequestered, from such eligible practices in accordance with section 747(b); and (iv) adequately mitigate environmental impacts (including impacts on biodiversity, land use, and water quality) with carrying out such eligible practices; (2) require the producer to maintain and supply information required by the Administrator to determine compliance with, and the effectiveness of, the program plan; (3) if the producer transfers the rights, title, and interests in eligible land subject to the contract (unless the transferee enters into an agreement with the Administrator to assume all obligations of the contract), require the producer to refund all payments received under the Program, as determined by the Administrator; (4) prohibit the producer from using payments made under subsection (e) to conduct any activities that would undermine the purposes of the Program; (5) include a provision that a producer may not be considered in violation of the contract for failure to comply with the contract due to circumstances beyond the control of the producer, including a disaster or other similar condition, as determined by the Administrator; (6) provide for annual payments to the producer in accordance with subsection (e); and (7) include any additional provisions the Administrator determines are necessary to carry out the Program. (c) Renewal If the Administrator determines that further implementation of a producer’s program plan would continue to result in cost-effective reduction or avoidance of greenhouse gas emissions, or sequestration of greenhouse gases, the Administrator may seek to renew the existing contract in the last year of the contract term if the producer— (1) demonstrates compliance with the provisions of the existing contract; and (2) agrees to adopt and continue to integrate new or improved eligible practices, as determined by the Administrator. (d) Term of contracts (1) In general A contract entered into or renewed under this section shall be for a term of— (A) not less than 5 years; and (B) not more than 20 years. (2) Factors for determining contract duration The Administrator shall determine the term of a contract entered into or renewed under this section based on— (A) the eligible practices included in the producer’s program plan; (B) the opportunities for greenhouse gas emission reduction or avoidance, or sequestration of greenhouse gases, from such eligible practices; and (C) other factors determined appropriate by the Administrator. (e) Annual payments (1) In general The Administrator shall provide annual payments to a producer with which the Administrator enters into or renews a contract under this section using amounts made available in the Negative Emissions Activities Fund. (2) Amount (A) Primary consideration The Administrator shall determine the amount of an annual payment under paragraph (1) based on— (i) the expected quantity of greenhouse gas emission reduction or avoidance, or sequestration of greenhouse gases, resulting from the eligible practices included in the program plan; (ii) the amount and scale of high-quality projects included in the program plan; and (iii) if applicable, the results of a reverse auction carried out pursuant to section 745(g). (B) Additional considerations In determining the amount of an annual payment under this paragraph, the Administrator may also consider— (i) costs incurred by the producer associated with developing and implementing the program plan, including costs associated with plans, designs, materials, equipment, and labor; (ii) income forgone by the producer from eligible land; (iii) the extent to which compensation would ensure long-term continued maintenance, management, and improvement of one or more practices included in the program plan; and (iv) other factors as determined appropriate by the Administrator. (C) Additional payments for maintenance of program plans If the Administrator and a producer agree to renew a contract pursuant to subsection (c), the Administrator may provide the producer a separate payment for purposes of maintaining the previously implemented program plan. Notwithstanding subparagraph (A), such separate payment may be based on actual measured and verified greenhouse gas emission reduction or avoidance, or sequestration of greenhouse gases. (3) Advance payments (A) In general The Administrator may, if requested by a producer, provide a portion of an annual payment in advance for costs related to purchasing materials, equipment, or contracting in order to implement one or more eligible practices included in the producer’s program plan. (B) Return of funds If a payment provided in advance under subparagraph (A) is not expended during the 90-day period beginning on the date of receipt of the payment, the remaining amounts of such payment shall be returned to the Negative Emissions Activities Fund within a reasonable timeframe, as determined by the Administrator. (C) Notification and documentation The Administrator shall— (i) notify each producer at the time of enrollment in the Program of the option to receive advance payments; and (ii) document each request to receive advance payments. (4) Financial assistance from other sources (A) In general Any payments received by a producer from a State, private organization, or person for the implementation of one or more eligible practices on eligible land shall be in addition to the payments provided to the producer pursuant to this subsection. (B) Prohibition on double counting The Administrator may require, as a condition of the contract, that a producer who receives payments for implementing eligible practices under this section may not also use such eligible practices as a compliance mechanism for another greenhouse gas emissions management program, including any foreign, Federal, State, local, or voluntary private greenhouse gas emissions management program, if such use would undermine the goals of section 702. (5) Limitation of payments The Administrator may not make payments under this section in excess of the amounts made available in the Negative Emissions Activities Fund. If the aggregate of such payments in any calendar year will exceed such amount, the Administrator shall reduce the amount of payments to the extent necessary to comply with the requirement in the first sentence. (f) Modification or termination of contracts (1) Voluntary modification or termination The Administrator may modify or terminate a contract entered into or renewed with a producer under this section if— (A) the producer agrees to the modification or termination; and (B) the Administrator determines that the modification or termination is in the public interest. (2) Involuntary termination The Administrator may terminate a contract under the program if the Administrator determines that the producer violated the contract. (3) Repayment If a contract is terminated, the Administrator may— (A) allow the producer to retain payments already received under the contract; or (B) require repayment, in whole or in part, of payments received. (g) Enforcement of terms and conditions (1) Termination Notwithstanding subsection (f), if the Administrator determines that a producer violated a term or condition of a contract entered into or renewed under this section, and such violation warrants termination of the contract (as determined by the Administrator), the producer— (A) may not receive payments under the contract; and (B) shall refund to the Administrator all or a portion of the payments received by the owner or operator under the contract, including any interest on the payments, as determined by the Administrator. (2) Other penalties Notwithstanding subsection (f), if the Administrator determines that a producer violated a term or condition of a contract entered into or renewed under this section, but such violation does not warrant termination of the contract, the producer shall refund to the Administrator, or accept adjustments to, the payments provided to the owner or operator, as the Administrator determines to be appropriate. 747. Duties of the Administrator (a) Technical assistance (1) In general To the extent appropriate, the Administrator, in consultation with the Secretary with respect to agricultural production and forest management practices on eligible land, shall assist producers with implementing program plans by providing to producers technical assistance, education, and outreach, including with respect to information and training to aid in the design, installation, and implementation of program plans. (2) Prioritized producers The Administrator shall prioritize providing technical assistance, education, and outreach under paragraph (1) to beginning producers and socially disadvantaged producers. (b) Verification of program plans The Administrator shall establish requirements for how producers may verify the actual quantity of greenhouse gas emissions reduced or avoided, or greenhouse gases sequestered, from eligible practices under section 746(b)(1)(B). The producer shall submit to the Administrator a report prepared by a third-party verifier accredited pursuant to paragraph (2) that provides such information as the Administrator requires to verify such quantities. (1) Schedule The Administrator shall prescribe a schedule for the submission of reports under this subsection, which shall occur not less than once during the term of each contract. (2) Verifier accreditation (A) In general The Administrator shall establish a process and requirements for periodic accreditation of third-party verifiers to ensure that such verifiers are professionally qualified and have no conflicts of interest. (B) Federal accreditation The process and requirements established under subparagraph (A) may include— (i) accreditation standards for third-party verifiers; and (ii) training and testing requirements for third-party verifiers. (C) Public accessibility Each third-party verifier meeting the requirements for accreditation established pursuant to subparagraph (A) shall be listed in a publicly accessible database, which shall be maintained and updated by the Administrator. (c) Audits The Administrator shall conduct, on an annual basis, random audits of eligible activities carried out by producers under program plans and the activities of third-party verifiers. At a minimum, the Administrator shall conduct audits each year of a representative sample of eligible activities and geographical areas. Nothing in this subsection prevents the Administrator from conducting any other audit the Administrator considers to be necessary. (d) Assessment of quantification methodologies The Administrator shall regularly assess the verification requirements established under subsection (b) and develop new requirements for verification as needed in order to effectively carry out this part. (e) Coordination with other Federal agencies In carrying out this part, the Administrator shall coordinate activities of the Environmental Protection Agency with the Department of Agriculture and other relevant Federal agencies implementing conservation programs to align protocols, decrease administrative burdens, and increase enrollment in beneficial climate practices. 748. Reporting and database (a) Report required Not later than January 1, 2029, and every 2 years thereafter, the Administrator shall submit to Congress a report on the status of eligible practices funded under this part, including— (1) the amount of payments awarded; (2) results of the eligible practices associated with such payments, including estimates of the quantity of reduction or avoidance of greenhouse gas emissions, or increases in sequestration of greenhouse gases; and (3) recommendations to improve the effectiveness of such eligible practices. (b) Practice database (1) In general The Administrator shall use the data reported under subsection (a) to establish and maintain a publicly available database that provides— (A) a compilation and analysis of eligible practices being carried out under program plans; and (B) a list of recommended eligible practices. (2) Privacy Information provided under paragraph (1) shall be transformed into a statistical or aggregate form so as to not include any identifiable or personal information of individual producers. 749. Program review and revision At least once every 5 years, the Administrator, in consultation with the Secretary with respect to agricultural production and forest management practices on eligible land, shall review and, as appropriate, update and revise— (1) the list of eligible practices established under section 744(a); (2) the methodologies established under section 744(c); (3) the criteria to evaluate applications under section 745; (4) the Program, as necessary, to increase participation by beginning producers and socially disadvantaged producers; and (5) any other requirements established under this part to ensure the effectiveness of achieving the purposes in section 742, including by incorporating new data and evidence about actual emissions outcomes of practices to improve model certainty and the accuracy of emission reduction estimates. E International Reserve Allowance Program 751. Definitions In this part: (1) Covered article The term covered article means any good which— (A) is imported into the United States: and (B) contains greater than 100 pounds of any combination of any covered primary good. (2) Covered imported good The term covered imported good means— (A) a covered primary good; or (B) a covered article. (3) Covered primary good The term covered primary good means any good which— (A) is imported into the United States; and (B) is produced by an eligible industrial sector listed pursuant to section 723. 752. International reserve allowance program (a) Establishment (1) In general The Administrator, with the concurrence of the Commissioner responsible for U.S. Customs and Border Protection and in consultation with additional Federal agencies as determined appropriate by the Administrator, shall issue regulations— (A) establishing an international reserve allowance program for the sale, exchange, purchase, transfer, and banking of international reserve allowances for covered imported goods; (B) ensuring that the price for purchasing an international reserve allowance is equivalent to the average of the previous four auction clearing prices for emission allowances under section 720; (C) establishing a general methodology for calculating the quantity of international reserve allowances that an importer of a covered imported good must submit; (D) requiring the submission of an appropriate amount of international reserve allowances for covered imported goods entering the customs territory of the United States; (E) exempting from the requirements of subparagraph (D) covered imported goods that are— (i) determined, by independent third-party verification, to meet the relevant output-based allocation benchmark under section 723(b); (ii) produced in any foreign country that the United Nations has identified as among the least developed of developing countries; or (iii) produced in any foreign country that the Administrator has determined to be responsible for less than 0.5 percent of total global greenhouse gas emissions and less than 5 percent of United States imports of covered imported goods with respect to the relevant eligible industrial sector; (F) specifying the procedures that U.S. Customs and Border Protection will apply for the declaration and entry of covered imported goods into the customs territory of the United States; (G) establishing procedures that prevent circumvention of the international reserve allowance program requirements for covered imported goods that are manufactured or processed in more than one foreign country; and (H) publishing, on an annual basis, relevant information regarding the quantity of international reserve allowances sold, the quantity of covered imported goods entering the customs territory of the United States, relevant greenhouse gas emissions information of such goods, the country of origin of such goods, and other information as determined relevant by the Administrator. (2) Purpose of program The Administrator shall establish the program under paragraph (1) consistent with international agreements to which the United States is a party, in a manner that minimizes the likelihood of carbon leakage as a result of differences between— (A) the direct and indirect costs of complying with part B of this title; and (B) the direct and indirect costs, if any, of complying in other countries with greenhouse gas regulatory programs, requirements, export tariffs, or other measures adopted or imposed to reduce greenhouse gas emissions. (b) Greenhouse gas emissions data for covered imported goods (1) In general Under the regulations established under subsection (a), the Administrator shall require independent, third-party verification of greenhouse gas emissions data, including attributable greenhouse gas emissions, for all relevant stages of production of each covered imported good entering the customs territory of the United States. (2) Failure to produce verified greenhouse gas emissions data If the Administrator determines that an importer of a covered imported good has failed to provide accurate, sufficient, and independent, third-party verified data, the Administrator shall make a determination of the greenhouse gas emissions associated with the production of such good based on the best available data related to the greenhouse gas emissions and production data from all facilities which produce similar goods within the country of origin, the greenhouse gas emissions intensity of the general economy of the country of origin of such good, and other factors determined relevant by the Administrator. (c) Disposition of proceeds (1) Clean energy rebate program supplemental funding 50 percent of the proceeds from the sale of international reserve allowances under this section in each fiscal year shall be made available to the Secretary of the Treasury to carry out the Clean Energy Rebate Program established by section 102 of the Climate Pollution Standard and Community Investment Act of 2024 . (2) Administrative expenses The Administrator may use, including the transfer of funds to the Commissioner responsible for U.S. Customs and Border Protection, not more than 10 percent of the proceeds from the sale of international reserve allowances under this section in each fiscal year to cover the administrative expenses associated with administering this section. (3) Remaining revenues The Administrator shall deposit any remaining proceeds from the sale of international reserve allowances under this section in a fiscal year in equal shares to the funds established by sections 103, 104, 105, and 106 of the Climate Pollution Standard and Community Investment Act of 2024 . (d) Effective date The international reserve allowance program shall not apply to imports of covered imported goods entering the customs territory of the United States before January 1, 2027. (e) Covered entities International reserve allowances shall not be used by covered entities to comply with part B of this title. . (b) Conforming amendments (1) Federal enforcement Section 113 of the Clean Air Act ( 42 U.S.C. 7413 ) is amended— (A) in subsection (a)(3), by striking or title VI, and inserting title VI, or title VII ; (B) in subsection (b)(2), by striking or title VI and inserting title VI, or title VII ; (C) in subsection (c)— (i) in the first sentence of paragraph (1), by striking or title VI (relating to stratospheric ozone control), and inserting title VI, or title VII, ; and (ii) in the first sentence of paragraph (3), by striking or VI and inserting VI, or VII ; (D) in subsection (d)(1)(B), by striking or VI and inserting VI, or VII ; and (E) in subsection (f), in the first sentence, by striking or VI and inserting VI, or VII . (2) Inspections, monitoring, and entry Section 114(a) of the Clean Air Act ( 42 U.S.C. 7414(a) ) is amended by striking section 112, (ii) and inserting section 112, or any regulation of greenhouse gas emissions under title VII, (ii) . (3) Enforcement Section 304(f) of the Clean Air Act ( 42 U.S.C. 7604(f) ) is amended— (A) in paragraph (2), by striking or at the end; (B) in paragraph (3), by striking ; or at the end and inserting a comma; (C) in paragraph (4), by striking the period at the end and inserting , or ; and (D) by inserting the following new paragraph after paragraph (4): (5) any requirement of title VII, . (4) Administrative proceedings and judicial review Section 307 of the Clean Air Act ( 42 U.S.C. 7607 ) is amended— (A) in subsection (a), by striking , or section 306 and inserting section 306, or title VII ; (B) in subsection (b)(1), by striking section 120, in the first sentence and inserting section 120, any final action under title VII, ; and (C) in subsection (d)(1)— (i) in subparagraph (T), by striking , and at the end and inserting a comma; (ii) by redesignating subparagraph (U) as subparagraph (V); and (iii) by inserting the following new subparagraph after subparagraph (T): (U) the promulgation or revision of any regulation under title VII, and . (5) Energy Independence and Security Act of 2007 Section 548(b) of the Energy Independence and Security Act of 2007 ( 42 U.S.C. 17158(b) ) is amended— (A) in paragraph (1), by striking the or at the end; (B) in paragraph (2), by striking the period at the end and inserting ; and ; and (C) by adding at the end the following: (3) section 722(e) of the Clean Air Act. . 102. Clean Energy Rebate Program (a) In general The Secretary, in consultation with the Secretary of Agriculture and the Secretary of Health and Human Services, shall carry out a program to be known as the Clean Energy Rebate Program to provide rebates to eligible households using amounts made available to the Secretary under sections 722(c) and 752 of the Clean Air Act. (b) Streamlined participation for certain beneficiaries The Secretary shall— (1) periodically estimate the number of eligible households, and the number of participating eligible households, for the Clean Energy Rebate Program; and (2) develop procedures, in consultation with the Commissioner of Social Security, the Railroad Retirement Board, the Secretary of Veterans Affairs, and relevant State agencies, to ensure that beneficiaries of the benefit programs administered by such entities receive the rebate for which such beneficiaries are eligible under the Clean Energy Rebate Program. (c) Rebate amount The rebate amount for an eligible household under this section shall be determined by the Secretary, accounting for— (1) the amount of funding made available under section 722(c) of the Clean Air Act; and (2) the number of citizens and permanent legal residents of the eligible household. (d) Delivery mechanism The Secretary shall establish rules for providing rebates to eligible households under this section in an administratively simple manner, and on a quarterly basis through— (1) direct deposit into the eligible household’s designated bank account; (2) a State’s electronic benefit transfer system; or (3) another Federal or State mechanism, if such a mechanism is approved by the Secretary. (e) Administration by States (1) In general The Secretary may, in consultation with the Secretary of Agriculture and the Secretary of Health and Human Services, establish uniform national program standards to enable States, upon the approval of the Secretary, to administer the Clean Energy Rebate Program in the State. Such a State shall establish procedures governing the administration of the Clean Energy Rebate Program that the relevant State agency determines best serve eligible households in the State, including households with special needs, such as households with elderly or disabled members, households in rural areas, homeless individuals, and households residing on reservations as defined in the Indian Child Welfare Act of 1978 and the Indian Financing Act of 1974. (2) Coadministration with other programs Such a State may coadminister the Clean Energy Rebate Program with other State programs, such as the supplemental nutrition assistance program authorized by the Food and Nutrition Act of 2008 in accordance with the provisions of this title. (3) Additional requirements No State shall impose any condition of eligibility for a rebate under this section other than what is required by this section. (4) Oversight Each State administering the Clean Energy Rebate Program shall— (A) assume responsibility for the certification of eligible households and for the issuance of rebates and the control and accountability thereof; and (B) report information to the Secretary at such a time and manner as determined appropriate by the Secretary. (f) Outreach The Secretary shall carry out a robust and comprehensive outreach program to ensure that eligible households learn of their eligibility for rebates and are advised of the opportunity to receive such rebates. (g) Tax treatment Rebate amounts provided under this section may not be includible in the gross income of the recipient for purposes of the Internal Revenue Code of 1986. (h) Regulations Not later than 24 months after the date of enactment of this title, the Secretary shall issue such regulations, or guidance, as the Secretary determines necessary or appropriate for the effective and efficient administration of the Clean Energy Rebate Program. (i) Definitions In this section: (1) Eligible household The term eligible household means a household— (A) for which the gross income of the household does not exceed 200 percent of the poverty line; (B) for which the relevant State agency of the State in which the household is located determines that the household is participating in— (i) the supplemental nutrition assistance program authorized by the Food and Nutrition Act of 2008 ( 7 U.S.C. 2011 et seq. ); (ii) the food distribution program on Indian reservations authorized by section 4(b) of such Act; or (iii) the program for nutrition assistance in Puerto Rico or American Samoa under section 19 of such Act; (C) that consists of a single individual or a married couple, and receives benefits under the supplemental security income program under title XVI of the Social Security Act ( 42 U.S.C. 1381 et seq. ); and (D) of which at least one member is a citizen or permanent legal resident. (2) Gross income of a household The term gross income of a household means the gross income of a household that is determined in accordance with standards and procedures established under section 5 of the Food and Nutrition Act of 2008 ( 7 U.S.C. 2014 ). (3) Household The term household has the meaning given the term Household in section 3(m) of the Food and Nutrition Act of 2008 ( 7 U.S.C. 2012(m) ). (4) Poverty line The term poverty line has the meaning given such term in section 673(2) of the Community Services Block Grant Act ( 42 U.S.C. 9902 ). (5) Secretary The term Secretary means the Secretary of the Treasury. (6) State The term State means the 50 States, the District of Columbia, the Commonwealth of Puerto Rico, American Samoa, the United States Virgin Islands, Guam, and the Commonwealth of the Northern Mariana Islands. 103. Worker and Community Assistance Fund (a) Establishment There is established in the Treasury of the United States a fund, to be known as the Worker and Community Assistance Fund, consisting of— (1) such amounts as are deposited in the fund under sections 722(g) and 752 of the Clean Air Act; and (2) such additional amounts as may be appropriated to supplement the fund. (b) Expenditures from fund (1) Availability Amounts deposited in the fund pursuant to subsection (a) shall be available to the Secretary of Labor and the Director of the Office of Energy and Economic Transition without subsequent appropriation and shall remain available without fiscal year limitation until expended. (2) Administrative expenses The Secretary of Labor and the Director of the Office of Energy and Economic Transition may use not more than 5 percent of the amount available in the Worker and Community Assistance Fund on October 1 of each fiscal year to cover the administrative expenses of carrying out title II of this Act for that fiscal year. 104. Cleaner Air Community Fund (a) Establishment There is established in the Treasury of the United States a fund, to be known as the Cleaner Air Community Fund, consisting of— (1) such amounts as are deposited in the fund under sections 722(h) and 752 of the Clean Air Act; and (2) such additional sums as may be appropriated to supplement the fund. (b) Expenditures from fund (1) In general Amounts deposited in the fund pursuant to subsection (a) shall be available to the Administrator of the Environmental Protection Agency without subsequent appropriation and shall remain available without fiscal year limitation until expended. (2) Administrative expenses The Administrator of the Environmental Protection Agency may use not more than 5 percent of the amount available in the Cleaner Air Community Fund on October 1 of each fiscal year to cover the administrative expenses of carrying out part C of title VII of the Clean Air Act for that fiscal year. 105. Negative Emissions Activities Fund (a) Establishment There is established in the Treasury of the United States a fund, to be known as the Negative Emissions Activities Fund, consisting of— (1) such amounts as are deposited in the fund under sections 722(i) and 752 of the Clean Air Act; and (2) such additional amounts as may be appropriated to supplement the fund. (b) Expenditures from fund (1) In general Amounts deposited in the fund pursuant to subsection (a) shall be available to the Administrator of the Environmental Protection Agency without subsequent appropriation and shall remain available without fiscal year limitation until expended. (2) Administrative expenses The Administrator of the Environmental Protection Agency may use not more than 5 percent of the amount available in the Negative Emissions Activities Fund on October 1 of each fiscal year to cover the administrative expenses of carrying out part D of title VII of the Clean Air Act for that fiscal year. 106. Energy Innovation Fund (a) Establishment There is established in the Treasury of the United States a fund, to be known as the Energy Innovation Fund, consisting of— (1) such amounts as are deposited in the fund under section 722(j) and 752 of the Clean Air Act; and (2) such additional amounts as may be appropriated to supplement the fund. (b) Expenditures from Fund (1) In general Beginning in fiscal year 2026, amounts deposited in the fund pursuant to subsection (a) shall be available to the Secretary of Energy without subsequent appropriation and shall remain available without fiscal year limitation until expended to provide assistance pursuant to subsection (c). (2) Administrative expenses The Secretary of Energy may use not more than 5 percent of the amount available in the Energy Innovation Fund on October 1 of each fiscal year to cover the administrative expenses of carrying out this section for that fiscal year. (c) Use of funds The Secretary of Energy shall provide assistance under this section, distributed on a competitive basis, to local, State, and Tribal governments, institutions of higher education, companies, research foundations, trade and industry research collaborations, or consortia of such entities, or other appropriate research and development entities to support research, development, and demonstration of technology that the Secretary determines supports achievement of the goals of section 702 of the Clean Air Act, including through targeted acceleration of— (1) novel early-stage clean energy research; (2) development of techniques, processes, and technologies, and related testing and evaluation; (3) development of manufacturing processes for clean energy technologies; and (4) demonstration for commercial applications of clean energy technologies. (d) Supplement not supplant Assistance provided under this section shall be used to supplement, and not to supplant, any other Federal resources available to carry out the activities described in this section. (e) Report to Congress Not later than 3 years after the date of enactment of this Act, and each year thereafter, the Secretary of Energy shall submit to Congress and make available to the public a report that describes the activities funded by the Energy Innovation Fund. 107. Emission allowance market oversight (a) Definition of emission allowance In this section, the term emission allowance means any emission allowance established or issued under title VII of the Clean Air Act, or any derivative of such allowance. (b) Interagency working group (1) Establishment Not later than 1 year after the date of enactment of this section, the President shall establish an interagency working group to support the oversight of emission allowance transactions. Such working group shall include representatives from— (A) the Environmental Protection Agency; (B) the Federal Energy Regulatory Commission; (C) the Commodity Futures Trading Commission; and (D) other relevant Federal agencies as determined by the President. (2) Recommendations The working group shall make periodic recommendations to Congress and relevant Federal agencies to— (A) provide for effective and comprehensive market oversight of emission allowance transactions; (B) prohibit fraud, market manipulation, and excess speculation related to emission allowance transactions; (C) limit unreasonable fluctuation in the prices of emission allowances; (D) ensure market transparency to provide for efficient price discovery, prevention of fraud, market manipulation, and excess speculation; and (E) facilitate compliance with title VII of the Clean Air Act. (3) Report Not later than 3 years after the date of enactment of this section, and biennially thereafter, the interagency working group shall submit to the President and Congress a written report that includes the recommendations made under paragraph (2) for— (A) regulations and other actions to be taken by Federal agencies to enhance the oversight of emission allowance transactions; and (B) statutory changes needed to ensure the proper operation and oversight of transparent, fair, stable, and efficient emission allowance transactions. 108. Direct hire authority for implementation of this title Notwithstanding section 3304 and sections 3309 through 3318 of title 5, United States Code, the Administrator of the Environmental Protection Agency, upon a determination by the Administrator that there is a severe shortage of candidates or a critical hiring need for particular positions to carry out this title (including the amendments made by this title), may recruit and directly appoint highly qualified individuals into the competitive service. II Worker and Community Assistance 201. Definitions In this title: (1) Adversely affected community The term adversely affected community means a unit of local government or an Indian Tribe (or a political subdivision thereof) that has been, or is at risk to be, significantly disrupted by the United States transition to net-zero greenhouse gas emissions through the loss of a significant portion of locally generated tax revenue or employment due to the closure, or risk of closure, of an impacted employer within its jurisdiction. (2) Adversely affected worker The term adversely affected worker means an individual who has been, or is at risk to be, totally separated or partially separated from employment by an impacted employer. (3) Director The term Director means the Director of the Office of Energy and Economic Transition. (4) Impacted employer The term impacted employer means a private entity that is primarily engaged in business related to— (A) the extraction of fossil fuels; (B) the refinement of fossil fuels; (C) the generation of electricity from fossil fuels; (D) the production of energy-intensive industrial products; (E) the manufacture of light-, medium-, and heavy-duty vehicles that utilize an internal combustion engine and component parts for such vehicles; (F) the construction, operation, and maintenance of infrastructure to deliver fossil fuels for domestic use; or (G) other industries significantly disrupted by the United States transition to net-zero greenhouse gas emissions, as determined by the Director, in consultation with the Administrator of the Environmental Protection Agency and the Secretary of Labor. (5) Partial separation The terms partial separation and partially separated mean, with respect to an individual who has not been totally separated from employment, that— (A) the number of hours of work for such individual has been reduced by an impacted employer to 80 percent or less of the average number of hours per week such individual worked per week prior to any separation from employment; and (B) the wages for such individual have been reduced by an impacted employer to 80 percent or less of the average wages per week while employed by the impacted employer prior to any separation. (6) Total separation The terms total separation and totally separated mean the layoff or severance of an individual from employment by an impacted employer. 202. Energy and economic transition impact studies (a) In general The Secretary of Energy shall seek to enter into an agreement with the National Academy of Sciences under which the Academy agrees to conduct studies on matters concerning the potential impacts of achieving net-zero greenhouse gas emissions on workers and communities dependent on employment related to fossil fuels as follows: (1) Not later than 1 year after the date of entry into such agreement, the Academy shall complete a study focused on communities that have experienced an energy-related transition within the previous 10 years, including communities that were dependent on coal, and submit to Congress and the Secretary of Energy a report on the results of such study. (2) Not later than 3 years after the date of entry into such agreement, the Academy shall complete a study focused on communities and industries not covered in the study under paragraph (1) that are likely to experience an energy-related transition should the United States achieve net-zero greenhouse gas emissions by 2050, and submit to Congress and the Secretary of Energy a report on the results of such study. (b) Timing of agreement The Secretary of Energy shall seek to enter into the agreement described in subsection (a) not later than 180 days after the date of the enactment of this Act. (c) Requirements The study and report under paragraph (1) of subsection (a), with respect to communities described in such paragraph, and the study and report under paragraph (2) of subsection (a), with respect to communities described in such paragraph, shall— (1) assess current and foreseeable trends in worker and community disruptions associated with the United States transition to achieving net-zero greenhouse gas emissions, and the effects of such trends on the social, economic, and other requirements of the United States; (2) identify types of occupations related to fossil fuels that may be impacted by the United States transition to achieving net-zero greenhouse gas emissions, including— (A) occupations involved with— (i) the extraction of fossil fuels; (ii) the refinement of fossil fuels; (iii) the generation of electricity from fossil fuels; (iv) the production of energy-intensive industrial products; (v) the manufacture of light-, medium-, and heavy-duty vehicles that utilize an internal combustion engine and component parts for such vehicles; and (vi) the construction, operation, and maintenance of infrastructure to deliver fossil fuels for domestic use; and (B) for each type of occupation identified under subparagraph (A), estimates of— (i) the number of employees serving in each type of occupation; (ii) the locations of employees for each type of occupation; (iii) the average wages and benefits of employees for each type of occupation; and (iv) the average age of employees for each type of occupation, including an estimate of the number of employees 55 years of age or older; (3) assess impacts and potential impacts associated with the United States transition to achieving net-zero greenhouse gas emissions on workers in the types of occupations identified under paragraph (2); (4) identify skills, including professional certifications, typically associated with each type of occupation identified under paragraph (2) and potential occupations utilizing the same or similar skills in industries not impacted by the United States transition to achieving net-zero greenhouse gas emissions, including an estimate of average wages and benefits for each such potential occupation; (5) identify the ages and locations of, and existing debt burdens, including debt burdens resulting from Department of Agriculture Rural Utilities Service loans, related to existing fossil fuel-powered electricity generating units; (6) identify municipal and county governments that derive— (A) more than 25 percent of locally generated tax revenue or employment within the jurisdiction of the government from industries employing workers in types of occupations identified under paragraph (2); and (B) more than 50 percent of locally generated tax revenue or employment within that jurisdiction from such industries; (7) assess the status and condition of communities already affected by the transition to achieving net-zero greenhouse gas emissions, that have lost significant locally generated tax revenue or employment within the past 10 years; (8) assess economic development and alternative employment opportunities in communities identified in paragraphs (6) and (7), including an assessment of existing educational, workforce development, and infrastructure assets, including transportation, energy, and digital infrastructure, near identified communities; (9) identify commonly occurring municipal and county government services and programs funded by locally generated tax revenues in communities identified in paragraphs (6) and (7), including— (A) education; (B) public safety, including police and fire departments; (C) health care; (D) infrastructure; and (E) workforce development; and (10) identify potential strategies, consistent with achieving net-zero greenhouse gas emissions, to avoid future disruptions among businesses and workers, including strategies to reskill workers to fill jobs in emerging and growing industries. (d) Recommendations The studies and reports under subsection (a) shall identify actions that could be taken regarding worker and community transition to net-zero greenhouse gas emissions, including— (1) compensation packages for employees in types of occupations identified under subsection (c)(2), including— (A) transition adjustment assistance, potentially including support for wages, pension, health care, and other benefits; and (B) enabling early retirement for such employees over the age of 55; (2) training and further education for employees in occupations identified under subsection (c)(2), potentially including job placement and relocation assistance; (3) economic development and diversification of communities identified under paragraphs (6) and (7) of subsection (c), including employment and development opportunities associated with environmental remediation; (4) financial assistance packages for communities identified in paragraphs (6) and (7) of subsection (c) to provide temporary replacement of lost locally generated tax revenue; and (5) recommendations for remedying deficiencies of existing programs and activities identified in subsection (c), which may include recommendations for Federal legislation and Executive action. (e) Authorization of appropriations There is authorized to be appropriated such sums as are necessary to carry out this section. 203. Office of Energy and Economic Transition (a) Establishment There is established in the Executive Office of the President an Office of Energy and Economic Transition. The Office shall be led by a Director who shall be appointed by the President, to serve at the pleasure of the President, by and with the advice and consent of the Senate. (b) Director qualifications The Director shall be a person who, as a result of training, experience, and attainments, is exceptionally well qualified to— (1) appraise programs and activities of the Federal Government in light of the challenges posed to adversely affected workers and adversely affected communities; (2) be conscious of and responsive to the scientific, economic, social, cultural, and pollution reduction needs and interests of the United States; and (3) formulate and recommend national policies to assist workers and communities disrupted in the United States transition to achieving net-zero greenhouse gas emissions. (c) Compensation for director The annual rate of pay for the Director shall be fixed by the President at a rate that may not exceed the annual rate of pay for level II of the Executive Schedule. (d) Duties of director The Director shall assist and advise the President on policies and programs of the Federal Government affecting the United States transition to achieving net-zero greenhouse gas emissions by— (1) administering the programs and activities under this title; (2) assisting and advising the President in the preparation of the Worker and Community Transition Report required under subsection (g); (3) reviewing and appraising the various programs and activities of the Federal Government related to adversely affected workers and economic development and diversification of adversely affected communities, and making recommendations to the President with respect to such programs and activities; (4) coordinating relevant programs and activities among the relevant Federal departments and agencies through the Interagency Energy and Economic Transition Task Force convened pursuant to section 204; (5) coordinating across Federal departments, agencies, and other initiatives to align energy-related transition strategies with other national economic development strategies, including national manufacturing, infrastructure, and environmental remediation strategies; (6) in accordance with section 205, being responsive to and coordinating with the Stakeholder Advisory Committee established under such section; (7) creating and maintaining a website to serve as an information clearinghouse containing information on relevant programs and activities from relevant departments and agencies across the Federal Government to increase awareness of Federal programs, grants, loans, loan guarantees, and other assistance and resources the Director determines may assist economic development and diversification activities in adversely affected communities and support adversely affected workers; (8) providing assistance to adversely affected communities, including technical and financial assistance, and support for capacity building and planning capabilities by adversely affected communities and community-based leaders of such communities, including assistance provided pursuant to section 206 or through Community-Based Transition Hubs pursuant to section 207; (9) collecting, collating, analyzing, and interpreting data and information on adversely affected workers and economic development and diversification of adversely affected communities; and (10) implementing grant programs or other forms of financial and technical assistance to support adversely affected workers and the economic development and diversification of adversely affected communities as required by this title or after determining no such similar program or assistance is being provided by a Federal agency. (e) Employment of personnel, experts, and consultants The Office may employ such officers and employees as may be necessary to carry out its duties under this title. In addition, the Office may employ and fix the compensation of such experts and consultants as may be necessary for carrying out such duties, in accordance with section 3109 of title 5, United States Code. (f) Reimbursements The Office may accept reimbursements from any private nonprofit organization, any department, agency, or instrumentality of the Federal Government, or any State or local government for the reasonable travel expenses incurred by the Director or an employee of the Office in connection with attendance at any conference, seminar, or similar meeting conducted for the benefit of the Office. (g) Report to congress Beginning in 2026, the President shall transmit to Congress a report, to be known as the Worker and Community Transition Report, not less than once every 2 years, which shall set forth— (1) the status and condition of workers and communities disrupted in the United States transition to achieving net-zero greenhouse gas emissions, with an emphasis on economic development and diversification activities in adversely affected communities; (2) current and foreseeable trends in worker and community disruptions associated with the United States transition to achieving net-zero greenhouse gas emissions, and the effects of such trends on the social, economic, and other requirements of the United States; (3) a review of the programs and activities (including regulatory activities) of the Federal Government, State, Tribal, and local governments, and nongovernmental entities or individuals that serve adversely affected communities; (4) recommendations for remedying deficiencies of existing programs and activities described in paragraph (3), which may include recommendations for new programs and activities and legislation to authorize such programs; and (5) the expenditures of the Office in support of programs and activities authorized under this title. (h) Authorization of appropriations There are authorized to be appropriated to carry out this section such sums as are necessary. 204. Interagency Energy and Economic Transition Task Force (a) In general Not later than 1 year after the date of enactment of this Act, the Director shall convene regularly a task force, to be known as the Interagency Energy and Economic Transition Task Force, to enhance the coordination of relevant programs and activities intended to support adversely affected workers and adversely affected communities, with an emphasis on economic development and diversification activities in adversely affected communities. (b) Composition The Task Force shall be comprised of the following (or a designee): (1) The Secretary of Energy. (2) The Secretary of Labor. (3) The Secretary of Commerce. (4) The Secretary of Agriculture. (5) The Secretary of Health and Human Services. (6) The Secretary of Housing and Urban Development. (7) The Secretary of the Interior. (8) The Secretary of Transportation. (9) The Secretary of the Treasury. (10) The Secretary of Education. (11) The Administrator of the Environmental Protection Agency. (12) The Administrator of the Small Business Administration. (13) The Director of the Office of Management and Budget. (14) The Chair of the Council on Environmental Quality. (15) The Chairman of the Appalachian Regional Commission. (16) Such other Federal officials as determined appropriate by the Director. (c) Functions The Task Force shall— (1) report to the President through the Director; (2) seek to enhance coordination and implementation of programs and activities related to the duties of the Office of Energy and Economic Transition in order to ensure that the administration of programs, activities, and policies across Federal departments and agencies is carried out in a consistent and complementary manner; (3) utilize, to the fullest extent possible, the services, facilities, and information (including statistical information) of public and private agencies and organizations, and individuals, in order that duplication of effort and expense may be avoided; and (4) identify, based in part on recommendations from the Stakeholder Advisory Committee established under section 205 and the public, opportunities to improve support for adversely affected workers and adversely affected communities for relevant Federal departments and agencies to take into consideration and address. (d) Public participation The Task Force shall— (1) hold public meetings or otherwise solicit public participation for the purposes of developing and coordinating policies and programs of the Federal Government related to adversely affected workers and adversely affected communities in the United States transition to achieving net-zero greenhouse gas emissions; and (2) publish a summary of any comments and recommendations provided pursuant to paragraph (1). 205. Stakeholder Advisory Committee (a) In general Not later than 1 year after the date of enactment of this Act, the Director shall establish a committee, to be known as the Stakeholder Advisory Committee, to consult with representatives of adversely affected communities, adversely affected workers, industry, labor unions, economic development experts, State, local, and Tribal governments, and other organizations and individuals, as determined appropriate by the Director, to address the needs of workers and communities affected by the United States energy transition to net-zero greenhouse gas emissions. (b) Membership The Stakeholder Advisory Committee shall be comprised of members who have knowledge of, or experience relating to, workers and communities adversely affected by the United States energy transition to net-zero greenhouse gas emissions, with an emphasis on economic development and diversification activities in adversely affected communities, and shall include— (1) representatives from labor unions, including at least one representative from— (A) the mining sector; (B) the electricity generation sector; (C) the manufacturing sector; and (D) the transportation sector; (2) community leaders from adversely affected communities, including community leaders from Tribal and Indigenous communities; (3) representatives from State, Tribal, and local governments; (4) experts in economic development; (5) experts in workforce development; (6) representatives from nongovernmental organizations, including environmental organizations; and (7) representatives from the private sector. (c) Responsibilities The Stakeholder Advisory Committee shall provide independent advice and recommendations to the Director with respect to issues relating to the duties of the Office of Energy and Economic Transition, including— (1) improving participation, cooperation, and communication between the Office and adversely affected communities; (2) recommending lessons learned and best practices from communities, regions, and countries that have gone through, are going through, or are planning for an energy-related economic transition; (3) supporting community-based public meetings, as described in subsection (f); (4) soliciting and receiving feedback from Community-Based Transition Hubs receiving grants pursuant to section 207; and (5) producing a report within 2 years of establishment, and every 2 years thereafter, and make recommendations, including actions that could be taken under executive authority and new legislation. (d) Recommendations from the stakeholder advisory committee The Director shall provide a written response to each recommendation submitted in a report under subsection (c) to the Director by the Stakeholder Advisory Committee by not later than 180 days after the date of submission of such report. (e) Committee meetings (1) In general The Stakeholder Advisory Committee shall meet not less frequently than 3 times each calendar year. (2) Open to public Each meeting of the Stakeholder Advisory Committee shall be held open to the public. (3) Duties of the director The Director (or a designee) shall— (A) be present at each meeting of the Stakeholder Advisory Committee; (B) ensure that each meeting is conducted in accordance with an agenda approved in advance by the Director; (C) provide an opportunity for interested persons— (i) to file comments before or after each meeting of the Stakeholder Advisory Committee; or (ii) to make statements at such a meeting, to the extent that time permits; and (D) ensure that a high-level representative from each department and agency from the Interagency Energy and Economic Transition Task Force convened pursuant to section 204 is invited to, and encouraged to attend, each meeting of the Stakeholder Advisory Committee. (f) Public meetings (1) In general Not later than 2 years after the date of enactment of this Act, and each year thereafter, the Director, in coordination with the Stakeholder Advisory Committee, shall hold public meetings to gather input with respect to the duties of the Office of Energy and Economic Transition and implementation of this title. (2) Outreach to adversely affected communities The Director, in advance of the meetings described in subsection (a), shall hold meetings in multiple adversely affected communities to provide meaningful community involvement opportunities. (3) Coordination with Community-Based Transition Hubs The Director, in advance of the meetings described in subsection (a), shall coordinate and solicit comments from entities receiving grants under section 207. (g) Travel expenses A member of the Stakeholder Advisory Committee may be allowed travel expenses, including per diem in lieu of subsistence, at such rate as the Director determines to be appropriate while away from the home or regular place of business of the member in the performance of the duties of the Stakeholder Advisory Committee, including participation in a public meeting pursuant to subsection (f). (h) Duration The Stakeholder Advisory Committee shall remain in existence unless otherwise provided by law. 206. Assistance for adversely affected communities (a) In general The Director shall establish a program to provide assistance to eligible local government entities, including making payments to temporarily replace eligible local revenues of such entities, using amounts made available to the Director in the Worker and Community Assistance Fund. (b) Requirements In implementing the program in subsection (a), the Director shall— (1) identify problems of counties, regions, metropolitan areas, Tribal Governments, and communities that result from the cessation of operations by impacted employers; (2) use and maintain a uniform socioeconomic impact analysis; (3) apply consistent policies, practices, and procedures in the administration of Federal programs that are used to assist counties, Tribal Governments, regions, metropolitan areas, communities, and businesses; (4) encourage effective Federal, State, Tribal, county, regional, metropolitan, and community cooperation and involvement of public interest groups, labor organizations, and private sector organizations in community adjustment activities; (5) serve as a clearinghouse to exchange information among Federal, State, Tribal, county, regional, metropolitan, and community officials involved in community adjustment activities. Such information may include reports, studies, best practices, technical information, and sources of public and private financing; and (6) support planning activities of counties, Tribal Governments, regions, metropolitan areas, and communities to promote diversification of local economies. (c) Community adjustments to eligible local government entities The Director shall make annual payments under this section to eligible local government entities to replace eligible local revenues due to the cessation of operations by impacted employers located within the jurisdiction of such local government entities. (d) Order of payment The date of submission of an eligible local government entity’s application for assistance shall establish the order in which assistance is paid to program applicants, except that in no event shall assistance be paid to a local government entity until such time that an impacted employer has been closed. Any local government entity seeking assistance under this section shall submit an affidavit to the Director that an impacted employer has ceased operating and an estimation of eligible local revenues. After receipt of such an affidavit under this subsection, the Director shall confirm such information. (e) Conditions on payments and assistance An eligible local government entity shall— (1) be eligible for not more than one payment each fiscal year under this section; and (2) not receive payments under this section for more than 8 fiscal years. (f) Determination of payment amount The amount of a payment under this section shall be determined by the Director based on the eligible local revenues from one or more impacted employers to an eligible local government entity equal to— (1) 90 percent of eligible local revenues in the first and second years; (2) 75 percent of eligible local revenues in the third and fourth years; (3) 50 percent of eligible local revenues in the fifth and sixth years; and (4) 25 percent of eligible local revenues in the seventh and eighth years. (g) Adjustment of payment amounts Notwithstanding subsection (f), if the Director determines that the total amount of payments to eligible local government entities in any year would exceed the amount of funding made available to carry out this section for that year, the Director may reduce each eligible local government entity’s payment on a pro rata basis. (h) Report to the director An eligible local government entity receiving payment under this section shall be required to submit an annual report to the Director explaining the use of payments, including a description of funding used for— (1) infrastructure; (2) telecommunications; (3) education; (4) health care; (5) public safety, including police, fire, emergency response, or other community support services; (6) drinking water and wastewater services; (7) economic development and diversification; (8) employment training, counseling, and placement services for dislocated workers; and (9) counseling and other social services for dislocated workers. (i) Community adjustments, economic development, and economic diversification planning The Director may make grants and supplement other Federal funds in order to assist a county, municipality, school district, special district, or Tribal Government in planning for community adjustments, economic development, and economic diversification even if such entity is not currently eligible for assistance under this section if the Director determines that there exists a reasonable likelihood that such entity may become eligible in the future. (j) Authorization of appropriations There are authorized to be appropriated such sums as are necessary for carrying out this section. (k) Definitions In this section: (1) Eligible local government entity The term eligible local government entity means a county, municipality, school district, special district, or Tribal Government that has one or more impacted employers located within the jurisdiction of such entity that have ceased operations within the 2 years prior to submitting an application to the Director, resulting in at least a 25 percent reduction in total revenues from the real property tax collections, royalties, lease payments, transaction privilege taxes and sales taxes, or payments in lieu of taxes owed to such entity. (2) Eligible local revenues The term eligible local revenues means the amount of real property taxes, royalty or lease payments, transaction privilege taxes and sales taxes, and payments in lieu of taxes owed by one or more impacted employers to a county, municipality, school district, special district, or Tribal Government, based on the average annual amount owed by such an impacted employer for the 3 years prior to the cessation of operations by such impacted employer. 207. Community-Based Transition Hub program (a) In general The Director shall establish a program to award grants to entities described in subsection (b), to be known as Community-Based Transition Hubs, to carry out the activities described in subsection (d), using amounts made available to the Director in the Worker and Community Assistance Fund. (b) Eligibility To be eligible to receive a grant under subsection (a), an entity shall demonstrate to the Director that the entity— (1) has existing relationships, or could readily establish relationships, with local employers and employees, county, municipal, and Tribal governments, local and regional economic development and planning organizations, workforce development, educational, and job training resources, economic development organizations, community organizations that provide social services, and other organizations determined appropriate by the Director; (2) is capable of carrying out the duties described in subsection (d); (3) can meet the standards described in subsection (e); and (4) can provide information consistent with the standards developed under subsection (f). (c) Priorities In awarding grants under this section, the Director shall prioritize grants to entities located in communities that— (1) receive assistance under section 206; or (2) the Director determines there is a reasonable likelihood may receive assistance under section 206 within 5 years. (d) Duties An entity that receives a grant under this section shall— (1) coordinate with the Office of Energy and Economic Transition and relevant Federal departments and agencies regarding the latest information, financial and technical assistance opportunities, and best practices to support workers and communities adversely affected by the United States energy transition to net-zero greenhouse gas emissions; (2) provide capacity-building support and technical assistance, including grant writing assistance, to local leaders and organizations, including elected officials, community leaders, business owners, and labor leaders, to facilitate community-driven planning processes and on-going program development and implementation related to assistance to displaced workers and economic development and diversification; (3) advise communities that apply for assistance under this title or under other Federal and State programs, including providing guidance on the procedures and deadlines for applying or petitioning for such assistance; (4) conduct public education activities, including outreach to adversely affected workers with respect to services and assistance available through local, State, and Federal programs; (5) provide information related to, and when appropriate, facilitate enrollment in— (A) training, employment counseling, employment opportunities, and placement services for adversely affected workers, available in local and regional areas, including information on how to apply for such training and services; (B) training programs and other services provided by a State pursuant to title I of the Workforce Investment Act of 1998 ( 29 U.S.C. 2801 et seq. ) and available in local and regional areas, including information on how to apply for such training; (C) educational opportunities and information related financial aid, including referring workers to educational opportunity centers described in section 402F of the Higher Education Act of 1965 ( 20 U.S.C. 1070a–16 ), where applicable; (D) short-term prevocational services, including development of learning skills, communications skills, interviewing skills, personal maintenance skills, and professional conduct to prepare individuals for employment or training; and (E) support services in local and regional areas, including services related to childcare, personal counseling (including substance abuse treatment, suicide prevention, and mental health care), family counseling, bankruptcy and financial counseling, transportation, dependent care, housing assistance, and need-related payments; (6) provide individual employment counseling for adversely affected workers, including development of an individual employment plan to identify employment goals and objectives, and appropriate training to achieve those goals and objectives, or information to obtain such counseling in local and regional areas; (7) provide employment statistics information, including the provision of accurate information relating to local, regional, and national labor market areas, including— (A) job vacancy listings in such labor market areas; (B) information on jobs skills necessary to obtain jobs identified in job vacancy listings described in subparagraph (A); (C) information relating to local occupations that are in demand and earnings potential of such occupations; and (D) skills requirements for local occupations described in subparagraph (C); and (8) provide information in a manner that is culturally and linguistically appropriate to the needs of the population being served. (e) Standards The Director shall establish standards for grant recipients under this section, including provisions to ensure that any entity that receives a grant is qualified to engage in the activities described in this section. (f) Fair and impartial information and services The Director, in consultation with States, Tribal Governments, and relevant Federal agencies, shall develop standards to ensure that information made available by grant recipients under this section is accurate and shall provide such entities with relevant information and technical assistance to enable grant recipients under this section to better perform the duties in subsection (d). (g) Limitations on grants (1) Period In carrying out this section, the Director shall ensure that the total period of a grant does not exceed 6 years. (2) Amount In carrying out this section, the Director shall ensure that the total amount awarded to an entity during the total period of the grant does not exceed $12,000,000. (h) Authorization of appropriations There is authorized to be appropriated such sums as are necessary for carrying out this section. 208. Assistance for adversely affected workers (a) In general Using amounts made available to the Secretary of Labor in the Worker and Community Assistance Fund, the Secretary of Labor shall provide assistance to each eligible adversely affected worker in accordance with this section. (b) Petitions (1) Filing (A) In general To be eligible to receive assistance under this section, a petition shall be filed with the Secretary and the Governor of the applicable State, simultaneously, by (or on behalf of) an adversely affected worker or a group of adversely affected workers that meets the requirements of subsection (c). (B) Authorized entities A petition under subparagraph (A) may be filed on behalf of an individual adversely affected worker or a group of adversely affected workers by one of the following: (i) The certified or recognized union or other duly authorized representative of such worker or workers. (ii) An employer of such worker or workers. (iii) A one-stop operator or one-stop partners (as defined in section 3 of the Workforce Innovation and Opportunity Act) including State employment security agencies. (iv) A State, or an entity designated by a State, carrying out rapid response activities pursuant to title I of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3111 et seq. ). (C) Applicable Governor For purposes of subparagraph (A), the term applicable State applicable State, when used with respect to an adversely affected worker or a group of such workers, means the State in which the employment site of such worker or workers is located. (2) Action by the Secretary of Labor Upon receipt of a petition filed under paragraph (1), the Secretary of Labor shall promptly publish notice in the Federal Register and on the website of the Department of Labor that the Secretary has received, and is reviewing, the petition. (3) Action by governors Upon receipt of a petition filed under paragraph (1), the Governor shall— (A) ensure that rapid response activities and appropriate career services (as described in section 134 of the Workforce Innovation and Opportunity Act) authorized under other Federal laws are made available to each adversely affected worker covered by the petition to the extent authorized under such laws; and (B) assist the Secretary of Labor in the review of the petition by verifying the information provided under the petition and providing such other assistance as the Secretary of Labor may request. (c) Eligibility An adversely affected worker who works or has worked at an employment site of an impacted employer or a group of adversely affected workers from the same employment site of an impacted employer shall be certified by the Secretary of Labor as eligible to receive assistance under this section if the Secretary determines that the petition filed under subsection (b) by or on behalf of such individual or group demonstrates that— (1) such individual worker or each individual worker in such group is an adversely affected worker who has been (or who has been at risk to be) totally separated or partially separated from employment with such impacted employer for not longer than the 1-year period ending on the date on which such petition is filed; (2) a significant number or percentage of the workers at such employment site are adversely affected workers; and (3) the sales, production, or delivery of goods or services at such employment site has decreased as a result of any requirement of title VII of the Clean Air Act, as added by this Act, which may be demonstrated by evidence— (A) in the case of a facility of such employer that mines, produces, processes, or utilizes fossil fuels to generate electricity, that the shift from reliance upon fossil fuels to other sources of energy has resulted in the closing of such facility or in the partial separation or total separation of a significant number or percentage of workers at such employment site; (B) in the case of a manufacturing facility, of a substantial increase in the cost of energy and other inputs required for such facility to produce items whose prices are competitive in the marketplace, and such cost increase is not significantly offset by emission allowance allocation to the facility pursuant to title VII of the Clean Air Act, as added by this Act; or (C) of other documented occurrences of such decreases at such employment site that the Secretary of Labor determines are indicators of an adverse impact on the industry in which such employer is primarily engaged as a result of any requirement of title VII of the Clean Air Act, as added by this Act. (d) Determination by the Secretary of Labor As soon as possible after the date on which a petition is filed under subsection (b) and not later than 60 days after that date, the Secretary of Labor, in consultation with the Administrator of the Environmental Protection Agency, as necessary, shall— (1) determine whether the worker or group of workers who filed the petition or on whose behalf such a petition was filed meets the requirements of subsection (c); (2) upon reaching a determination with respect to a petition, promptly publish a summary of the determination in the Federal Register and on the website of the Department of Labor, which shall include the first date of the total separation or partial separation (or the risk of total separation or partial separation) from employment with an impacted employer of each worker covered by the petition; and (3) if the Secretary determines that such petition meets the requirements of subsection (c)— (A) publish a certification that such worker or workers are eligible for the assistance described in subsections (e) and (f); and (B) notify the representatives of the industry in which the worker or workers were employed, the employer or previous employer of such worker or workers, and any entity that filed the petition on behalf of the worker or workers, of— (i) the assistance described in subsections (e) and (f); and (ii) an explanation of how to apply for such assistance. (e) Wage adjustment assistance (1) Agreements with states An adversely affected worker covered by a certification under subsection (d) may be eligible to receive the wage adjustment assistance described in this subsection— (A) if the worker is or was employed in a State with an agreement described in paragraph (2), by submitting to such State an application for such assistance; or (B) if the worker is or was employed in a State with no such agreement, by complying with the regulations issued by the Secretary pursuant to paragraph (4). (2) State agreement The Secretary of Labor may enter into an agreement with a State or State agency, which shall provide for each of the following: (A) Applications The State or State agency shall receive applications from adversely affected workers pursuant to paragraph (1)(A). (B) Terms and conditions The terms and conditions for amending, suspending, or terminating such agreement. (C) Relationship to unemployment insurance An adversely affected worker receiving wage adjustment assistance under this subsection shall not be eligible for unemployment insurance otherwise payable to such worker under the laws of the State. (D) Responsibilities of cooperating agencies The State or State agency shall perform outreach to adversely affected workers in the State covered by a certification under subsection (d) with respect to the assistance available to such workers under this subsection. (E) State funds The Secretary shall provide funds to the State or State agency to provide the assistance described in this subsection, and in addition to such funds, the State shall receive a payment from the Secretary in an amount that is equal to 15 percent of the amount of such funds for administrative expenses, including— (i) reviewing petitions under subsection (b)(3); (ii) collecting, validating, and reporting data required under this section; (iii) providing information and employment services; and (iv) administering wage adjustments under this subsection. (3) Wage adjustment assistance (A) Eligibility Payment of a wage adjustment assistance shall be made to an adversely affected worker covered by a certification published by the Secretary of Labor pursuant to subsection (d) who files an application with a State or State agency under paragraph (1) for such assistance for any month of total separation or partial separation from employment with an impacted employer, if the following conditions are met: (i) The first month of such total separation or partial separation occurred during the period beginning on the date that is 1 year before, and ending on the date that is 2 years after, the date of such certification. (ii) Such worker had, in the 52-week period ending with the week in which such total separation or partial separation first occurred, at least 26 weeks of full-time employment or 1,040 hours of part-time employment with an impacted employer, or, if data with respect to weeks of employment are not available, equivalent amounts of employment computed under regulations prescribed by the Secretary of Labor. For the purposes of this clause, a week shall be treated as a week of employment in which such worker— (I) is on employer-authorized leave for purposes of vacation, sickness, injury, parental or family leave, or inactive duty or active duty military service for training; (II) does not work because of a disability that is compensable under a workmen’s compensation law or plan of a State or the United States; (III) had employment interrupted in order to serve as a full-time representative of a labor organization in such firm; or (IV) performs service in the uniformed services as such term is defined in section 4303 of title 38, United States Code. (B) Ineligibility for certain other benefits An adversely affected worker receiving a payment under this subsection shall be ineligible to receive any other form of unemployment insurance for the period in which such worker is receiving a wage adjustment assistance under this section. (C) Payments (i) Amounts Payments under this subsection shall be provided to an individual in an amount which, for each month during an applicable period, is equal to— (I) the average amount of monthly remuneration for employment paid to such individual during the 12-month period prior to the first month of total separation or partial separation identified in subparagraph (A)(i); minus (II) an amount equal to the sum of— (aa) any wages received by such individual with respect to employment during such month; plus (bb) any payments made to such individual pursuant to a Federal benefit program during such month. (ii) Notification During the applicable period, an eligible individual shall notify the Secretary of Labor or cooperating State agency, if applicable, with respect to any wages, payments, or compensation described in clause (i)(II)(aa). (iii) Applicable period For purposes of this subsection, the term applicable period means, with respect to an individual receiving assistance under this subsection, the 36-month period subsequent to the first month of total separation or partial separation identified in subparagraph (A)(i). (iv) Frequency Any payment to an eligible individual under this subsection shall be provided on a basis which is not less frequent than once per month during the applicable period. (v) Adjustment for inflation In the case of a calendar year beginning after the date that the employment of an eligible individual is terminated, the dollar amount of the payment determined under subsection (a) shall be increased by an amount equal to— (I) such dollar amount, multiplied by (II) the cost-of-living adjustment determined under section 1(f)(3) of the Internal Revenue Code of 1986 for such calendar year, determined by substituting calendar year 2023 for calendar year 2016 in subparagraph (A)(ii) thereof. (vi) Tax treatment For purposes of the Internal Revenue Code of 1986, the amount of any payment provided to a qualified individual under this subsection shall be included in gross income and treated as wages (as defined in section 3121(a) of such Code). (4) Administration absent state agreement For any State where there is no agreement in force between a State or its agency under paragraph (1), the Secretary of Labor shall promulgate regulations for the performance of all necessary functions under this subsection. (f) Other assistance (1) Health insurance continuation Not later than 1 year after the date of enactment of this section, the Secretary of Labor shall prescribe regulations to provide, for a period of no longer than 36 months, 80 percent of the monthly premium of any health insurance coverage that an adversely affected worker who is covered by a certification published pursuant to subsection (d) was receiving through such worker’s employer prior to the separation from employment, to be paid to any health care insurance plan designated by the adversely affected worker receiving assistance under this section. (2) Educational benefits The Secretary of Labor, in consultation with the Secretary of Labor of Education, shall carry out a program of educational assistance for any eligible adversely affected worker who is covered by a certification published pursuant to subsection (d) and child of such worker that is comparable to the program of education assistance administered by the Secretary of Labor of Veterans Affairs under chapter 33 of title 38, United States Code, except that an eligible worker, and each child of such worker, may receive the educational assistance provided under the program. (3) Employment services and training The Secretary of Labor shall provide, directly or through agreements with the States similar to agreements described in subsection (e), to adversely affected workers covered by a certification under this section information related to, and, when appropriate, facilitate enrollment in— (A) training, employment counseling, employment opportunities, and placement services for adversely affected workers, available in local and regional areas, including information on how to apply for such training and services; (B) training programs and other services provided by a State pursuant to title I of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3111 et seq. ) and available in local and regional areas, including information on how to apply for such training; (C) educational opportunities and information related financial aid, including referring workers to educational opportunity centers described in section 402F of the Higher Education Act of 1965 ( 20 U.S.C. 1070a–16 ); (D) short-term prevocational services, including development of learning skills, communications skills, interviewing skills, personal maintenance skills, and professional conduct to prepare individuals for employment or training; and (E) support services in local and regional areas, including services related to childcare, personal counseling (including substance abuse treatment, suicide prevention, and mental health care), family counseling, bankruptcy and financial counseling, transportation, dependent care, housing assistance, and need-related payments. (g) Fraud and recovery of overpayments (1) Recovery of payments to which an individual was not entitled If the Secretary of Labor or a court of competent jurisdiction determines that any person has received any payment under this section to which the individual was not entitled, such individual shall be liable to repay such amount to the Secretary of Labor or to the State that made such payment pursuant to an agreement under subsection (e), except that the Secretary of Labor or such State may waive such repayment if the Secretary or the State determines that— (A) the payment was made without fault on the part of such individual; and (B) requiring such repayment would cause a financial hardship for the individual (or the individual’s household, if applicable) when taking into consideration the income and resources reasonably available to the individual (or household) and other ordinary living expenses of the individual (or household). (2) Means of recovery Unless an overpayment is otherwise recovered, or waived under paragraph (1), the Secretary of Labor shall recover the overpayment by deductions from any sums payable to such person under this section, under any Federal unemployment compensation law, or other Federal law administered by the Secretary of Labor which provides for the payment of assistance with respect to unemployment. Any amount recovered under this section shall be returned to the Treasury of the United States.