H.R. 5376, An Act to provide for reconciliation pursuant to title II of S. Con. Res. 14 — In the Senate (2022)
Summary
In the Senate of the United States, on August 7 (legislative day, August 6), 2022, it was resolved that the bill from the House of Representatives (H.R. 5376), entitled An Act to provide for reconciliation, do pass with an amendment striking all after the enacting clause and inserting new text. Title I, Committee on Finance, Subtitle A, Deficit Reduction, begins with Part 1, Corporate Tax Reform. Section 10101, Corporate Alternative Minimum Tax, sets the tentative minimum tax for an applicable corporation by reference to 15 percent of the adjusted financial statement income for the taxable year.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
- Issuer
- Congressional materials
- Document type
- Bills Bills 117Hr5376Eas Bills 117Hr5376Eas
- Case
- Bills Bills 117Hr5376Eas Bills 117Hr5376Eas
Cite this document
“H.R. 5376, An Act to provide for reconciliation pursuant to title II of S. Con. Res. 14 — In the Senate (2022).”
Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/bills-bills-117hr5376eas-bills-117hr5376eas/
, SHA-256 ee9a737e44f4bb0e6794586430f87975be7f90ed6f0e471c1c8b4671eedf7a1d.Full text
In the Senate of the United States,
August 7 (legislative day, August 6), 2022.
Resolved, That the bill from the House of Representa-
tives (H.R. 5376) entitled ‘‘An Act to provide for reconcili-
ation pursuant to title II of S. Con. Res. 14.’’, do pass with
the following
AMENDMENT:
Strike all after the enacting clause and insert the
following:
1 TITLE I—COMMITTEE ON
2 FINANCE
3 Subtitle A—Deficit Reduction
4 SEC. 10001. AMENDMENT OF 1986 CODE.
5 Except as otherwise expressly provided, whenever in
6 this subtitle an amendment or repeal is expressed in terms
7 of an amendment to, or repeal of, a section or other provi-
8 sion, the reference shall be considered to be made to a section
9 or other provision of the Internal Revenue Code of 1986.
2
1 PART 1—CORPORATE TAX REFORM
2 SEC. 10101. CORPORATE ALTERNATIVE MINIMUM TAX.
3 (a) IMPOSITION OF TAX.—
4 (1) IN GENERAL.—Paragraph (2) of section
5 55(b) is amended to read as follows:
6 ‘‘(2) CORPORATIONS.—
7 ‘‘(A) APPLICABLE CORPORATIONS.—In the
8 case of an applicable corporation, the tentative
9 minimum tax for the taxable year shall be the
10 excess of—
11 ‘‘(i) 15 percent of the adjusted finan-
12 cial statement income for the taxable year
13 (as determined under section 56A), over
14 ‘‘(ii) the corporate AMT foreign tax
15 credit for the taxable year.
16 ‘‘(B) OTHER CORPORATIONS.—In the case
17 of any corporation which is not an applicable
18 corporation, the tentative minimum tax for the
19 taxable year shall be zero.’’.
20 (2) APPLICABLE CORPORATION.—Section 59 is
21 amended by adding at the end the following new sub-
22 section:
23 ‘‘(k) APPLICABLE CORPORATION.—For purposes of this
24 part—
25 ‘‘(1) APPLICABLE CORPORATION DEFINED.—
† HR 5376 EAS
3
1 ‘‘(A) IN GENERAL.—The term ‘applicable
2 corporation’ means, with respect to any taxable
3 year, any corporation (other than an S corpora-
4 tion, a regulated investment company, or a real
5 estate investment trust) which meets the average
6 annual adjusted financial statement income test
7 of subparagraph (B) for one or more taxable
8 years which—
9 ‘‘(i) are prior to such taxable year, and
10 ‘‘(ii) end after December 31, 2021.
11 ‘‘(B) AVERAGE ANNUAL ADJUSTED FINAN-
12 CIAL STATEMENT INCOME TEST.—For purposes
13 of this subsection—
14 ‘‘(i) a corporation meets the average
15 annual adjusted financial statement income
16 test for a taxable year if the average annual
17 adjusted financial statement income of such
18 corporation (determined without regard to
19 section 56A(d)) for the 3-taxable-year period
20 ending with such taxable year exceeds
21 $1,000,000,000, and
22 ‘‘(ii) in the case of a corporation de-
23 scribed in paragraph (2), such corporation
24 meets the average annual adjusted financial
† HR 5376 EAS
4
1 statement income test for a taxable year
2 if—
3 ‘‘(I) the corporation meets the re-
4 quirements of clause (i) for such tax-
5 able year (determined after the appli-
6 cation of paragraph (2)), and
7 ‘‘(II) the average annual adjusted
8 financial statement income of such cor-
9 poration (determined without regard to
10 the application of paragraph (2) and
11 without regard to section 56A(d)) for
12 the 3-taxable-year-period ending with
13 such taxable year is $100,000,000 or
14 more.
15 ‘‘(C) EXCEPTION.—Notwithstanding sub-
16 paragraph (A), the term ‘applicable corporation’
17 shall not include any corporation which other-
18 wise meets the requirements of subparagraph (A)
19 if—
20 ‘‘(i) such corporation—
21 ‘‘(I) has a change in ownership,
22 or
23 ‘‘(II) has a specified number (to
24 be determined by the Secretary and
25 which shall, as appropriate, take into
† HR 5376 EAS
5
1 account the facts and circumstances of
2 the taxpayer) of consecutive taxable
3 years, including the most recent tax-
4 able year, in which the corporation
5 does not meet the average annual ad-
6 justed financial statement income test
7 of subparagraph (B), and
8 ‘‘(ii) the Secretary determines that it
9 would not be appropriate to continue to
10 treat such corporation as an applicable cor-
11 poration.
12 The preceding sentence shall not apply to any
13 corporation if, after the Secretary makes the de-
14 termination described in clause (ii), such cor-
15 poration meets the average annual adjusted fi-
16 nancial statement income test of subparagraph
17 (B) for any taxable year beginning after the first
18 taxable year for which such determination ap-
19 plies.
20 ‘‘(D) SPECIAL RULES FOR DETERMINING
21 APPLICABLE CORPORATION STATUS.—
22 ‘‘(i) IN GENERAL.—Solely for purposes
23 of determining whether a corporation is an
24 applicable corporation under this para-
25 graph, all adjusted financial statement in-
† HR 5376 EAS
6
1 come of persons treated as a single employer
2 with such corporation under subsection (a)
3 or (b) of section 52 (determined with the
4 modifications described in clause (ii)) shall
5 be treated as adjusted financial statement
6 income of such corporation, and adjusted fi-
7 nancial statement income of such corpora-
8 tion shall be determined without regard to
9 paragraphs (2)(D)(i) and (11) of section
10 56A(c).
11 ‘‘(ii) MODIFICATIONS.—For purposes
12 of this subparagraph—
13 ‘‘(I) section 52(a) shall be applied
14 by substituting ‘component members’
15 for ‘members’, and
16 ‘‘(II) for purposes of applying sec-
17 tion 52(b), the term ‘trade or business’
18 shall include any activity treated as a
19 trade or business under paragraph (5)
20 or (6) of section 469(c) (determined
21 without regard to the phrase ‘To the
22 extent provided in regulations’ in such
23 paragraph (6)).
24 ‘‘(iii) COMPONENT MEMBER.—For pur-
25 poses of this subparagraph, the term ‘com-
† HR 5376 EAS
7
1 ponent member’ has the meaning given such
2 term by section 1563(b), except that the de-
3 termination shall be made without regard to
4 section 1563(b)(2).
5 ‘‘(E) OTHER SPECIAL RULES.—
6 ‘‘(i) CORPORATIONS IN EXISTENCE FOR
7 LESS THAN 3 YEARS.—If the corporation
8 was in existence for less than 3-taxable
9 years, subparagraph (B) shall be applied on
10 the basis of the period during which such
11 corporation was in existence.
12 ‘‘(ii) SHORT TAXABLE YEARS.—Ad-
13 justed financial statement income for any
14 taxable year of less than 12 months shall be
15 annualized by multiplying the adjusted fi-
16 nancial statement income for the short pe-
17 riod by 12 and dividing the result by the
18 number of months in the short period.
19 ‘‘(iii) TREATMENT OF PREDE-
20 CESSORS.—Any reference in this subpara-
21 graph to a corporation shall include a ref-
22 erence to any predecessor of such corpora-
23 tion.
24 ‘‘(2) SPECIAL RULE FOR FOREIGN-PARENTED
25 MULTINATIONAL GROUPS.—
† HR 5376 EAS
8
1 ‘‘(A) IN GENERAL.—If a corporation is a
2 member of a foreign-parented multinational
3 group for any taxable year, then, solely for pur-
4 poses of determining whether such corporation
5 meets the average annual adjusted financial
6 statement income test under paragraph
7 (1)(B)(ii)(I) for such taxable year, the adjusted
8 financial statement income of such corporation
9 for such taxable year shall include the adjusted
10 financial statement income of all members of
11 such group. Solely for purposes of this subpara-
12 graph, adjusted financial statement income shall
13 be determined without regard to paragraphs
14 (2)(D)(i), (3), (4), and (11) of section 56A(c).
15 ‘‘(B) FOREIGN-PARENTED MULTINATIONAL
16 GROUP.—For purposes of subparagraph (A), the
17 term ‘foreign-parented multinational group’
18 means, with respect to any taxable year, two or
19 more entities if—
20 ‘‘(i) at least one entity is a domestic
21 corporation and another entity is a foreign
22 corporation,
23 ‘‘(ii) such entities are included in the
24 same applicable financial statement with
25 respect to such year, and
† HR 5376 EAS
9
1 ‘‘(iii) either—
2 ‘‘(I) the common parent of such
3 entities is a foreign corporation, or
4 ‘‘(II) if there is no common par-
5 ent, the entities are treated as having
6 a common parent which is a foreign
7 corporation under subparagraph (D).
8 ‘‘(C) FOREIGN CORPORATIONS ENGAGED IN
9 A TRADE OR BUSINESS WITHIN THE UNITED
10 STATES.—For purposes of this paragraph, if a
11 foreign corporation is engaged in a trade or
12 business within the United States, such trade or
13 business shall be treated as a separate domestic
14 corporation that is wholly owned by the foreign
15 corporation.
16 ‘‘(D) OTHER RULES.—The Secretary shall,
17 applying the principles of this section, prescribe
18 rules for the application of this paragraph, in-
19 cluding rules for the determination of—
20 ‘‘(i) the entities (if any) which are to
21 be to be treated under subparagraph
22 (B)(iii)(II) as having a common parent
23 which is a foreign corporation,
24 ‘‘(ii) the entities to be included in a
25 foreign-parented multinational group, and
† HR 5376 EAS
10
1 ‘‘(iii) the common parent of a foreign-
2 parented multinational group.
3 ‘‘(3) REGULATIONS OR OTHER GUIDANCE.—The
4 Secretary shall provide regulations or other guidance
5 for the purposes of carrying out this subsection, in-
6 cluding regulations or other guidance—
7 ‘‘(A) providing a simplified method for de-
8 termining whether a corporation meets the re-
9 quirements of paragraph (1), and
10 ‘‘’(B) addressing the application of this sub-
11 section to a corporation that experiences a
12 change in ownership.’’.
13 (3) REDUCTION FOR BASE EROSION AND ANTI-
14 ABUSE TAX.—Section 55(a)(2) is amended by insert-
15 ing ‘‘plus, in the case of an applicable corporation,
16 the tax imposed by section 59A’’ before the period at
17 the end.
18 (4) CONFORMING AMENDMENTS.—
19 (A) Section 55(a) is amended by striking
20 ‘‘In the case of a taxpayer other than a corpora-
21 tion, there’’ and inserting ‘‘There’’.
22 (B)(i) Section 55(b)(1) is amended—
23 (I) by striking so much as precedes
24 subparagraph (A) and inserting the fol-
25 lowing:
† HR 5376 EAS
11
1 ‘‘(1) NONCORPORATE TAXPAYERS.—In the case of
2 a taxpayer other than a corporation—’’, and
3 (II) by adding at the end the following
4 new subparagraph:
5 ‘‘(D) ALTERNATIVE MINIMUM TAXABLE IN-
6 COME.—The term ‘alternative minimum taxable
7 income’ means the taxable income of the tax-
8 payer for the taxable year—
9 ‘‘(i) determined with the adjustments
10 provided in section 56 and section 58, and
11 ‘‘(ii) increased by the amount of the
12 items of tax preference described in section
13 57.
14 If a taxpayer is subject to the regular tax, such
15 taxpayer shall be subject to the tax imposed by
16 this section (and, if the regular tax is determined
17 by reference to an amount other than taxable in-
18 come, such amount shall be treated as the taxable
19 income of such taxpayer for purposes of the pre-
20 ceding sentence).’’.
21 (ii) Section 860E(a)(4) is amended by
22 striking ‘‘55(b)(2)’’ and inserting ‘‘55(b)(1)(D)’’.
23 (iii) Section 897(a)(2)(A)(i) is amended by
24 striking ‘‘55(b)(2)’’ and inserting ‘‘55(b)(1)(D)’’.
† HR 5376 EAS
12
1 (C) Section 11(d) is amended by striking
2 ‘‘the tax imposed by subsection (a)’’ and insert-
3 ing ‘‘the taxes imposed by subsection (a) and sec-
4 tion 55’’.
5 (D) Section 12 is amended by adding at the
6 end the following new paragraph:
7 ‘‘(5) For alternative minimum tax, see section
8 55.’’.
9 (E) Section 882(a)(1) is amended by insert-
10 ing ‘‘, 55,’’ after ‘‘section 11’’.
11 (F) Section 6425(c)(1)(A) is amended to
12 read as follows:
13 ‘‘(A) the sum of—
14 ‘‘(i) the tax imposed by section 11 or
15 subchapter L of chapter 1, whichever is ap-
16 plicable, plus
17 ‘‘(ii) the tax imposed by section 55,
18 plus
19 ‘‘(iii) the tax imposed by section 59A,
20 over’’.
21 (G) Section 6655(e)(2) is amended by in-
22 serting ‘‘, adjusted financial statement income
23 (as defined in section 56A),’’ before ‘‘and modi-
24 fied taxable income’’ each place it appears in
25 subparagraphs (A)(i) and (B)(i).
† HR 5376 EAS
13
1 (H) Section 6655(g)(1)(A) is amended by
2 redesignating clauses (ii) and (iii) as clauses
3 (iii) and (iv), respectively, and by inserting after
4 clause (i) the following new clause:
5 ‘‘(ii) the tax imposed by section 55,’’.
6 (b) ADJUSTED FINANCIAL STATEMENT INCOME.—
7 (1) IN GENERAL.—Part VI of subchapter A of
8 chapter 1 is amended by inserting after section 56 the
9 following new section:
10 ‘‘SEC. 56A. ADJUSTED FINANCIAL STATEMENT INCOME.
11 ‘‘(a) IN GENERAL.—For purposes of this part, the term
12 ‘adjusted financial statement income’ means, with respect
13 to any corporation for any taxable year, the net income
14 or loss of the taxpayer set forth on the taxpayer’s applicable
15 financial statement for such taxable year, adjusted as pro-
16 vided in this section.
17 ‘‘(b) APPLICABLE FINANCIAL STATEMENT.—For pur-
18 poses of this section, the term ‘applicable financial state-
19 ment’ means, with respect to any taxable year, an applica-
20 ble financial statement (as defined in section 451(b)(3) or
21 as specified by the Secretary in regulations or other guid-
22 ance) which covers such taxable year.
23 ‘‘(c) GENERAL ADJUSTMENTS.—
24 ‘‘(1) STATEMENTS COVERING DIFFERENT TAX-
25 ABLE YEARS.—Appropriate adjustments shall be
† HR 5376 EAS
14
1 made in adjusted financial statement income in any
2 case in which an applicable financial statement cov-
3 ers a period other than the taxable year.
4 ‘‘(2) SPECIAL RULES FOR RELATED ENTITIES.—
5 ‘‘(A) CONSOLIDATED FINANCIAL STATE-
6 MENTS.—If the financial results of a taxpayer
7 are reported on the applicable financial state-
8 ment for a group of entities, rules similar to the
9 rules of section 451(b)(5) shall apply.
10 ‘‘(B) CONSOLIDATED RETURNS.—Except as
11 provided in regulations prescribed by the Sec-
12 retary, if the taxpayer is part of an affiliated
13 group of corporations filing a consolidated re-
14 turn for any taxable year, adjusted financial
15 statement income for such group for such taxable
16 year shall take into account items on the group’s
17 applicable financial statement which are prop-
18 erly allocable to members of such group.
19 ‘‘(C) TREATMENT OF DIVIDENDS AND
20 OTHER AMOUNTS.—In the case of any corpora-
21 tion which is not included on a consolidated re-
22 turn with the taxpayer, adjusted financial state-
23 ment income of the taxpayer with respect to such
24 other corporation shall be determined by only
25 taking into account the dividends received from
† HR 5376 EAS
15
1 such other corporation (reduced to the extent pro-
2 vided by the Secretary in regulations or other
3 guidance) and other amounts which are includ-
4 ible in gross income or deductible as a loss under
5 this chapter (other than amounts required to be
6 included under sections 951 and 951A or such
7 other amounts as provided by the Secretary)
8 with respect to such other corporation.
9 ‘‘(D) TREATMENT OF PARTNERSHIPS.—
10 ‘‘(i) IN GENERAL.—Except as provided
11 by the Secretary, if the taxpayer is a part-
12 ner in a partnership, adjusted financial
13 statement income of the taxpayer with re-
14 spect to such partnership shall be adjusted
15 to only take into account the taxpayer’s dis-
16 tributive share of adjusted financial state-
17 ment income of such partnership.
18 ‘‘(ii) ADJUSTED FINANCIAL STATEMENT
19 INCOME OF PARTNERSHIPS.—For the pur-
20 poses of this part, the adjusted financial
21 statement income of a partnership shall be
22 the partnership’s net income or loss set forth
23 on such partnership’s applicable financial
24 statement (adjusted under rules similar to
25 the rules of this section).
† HR 5376 EAS
16
1 ‘‘(3) ADJUSTMENTS TO TAKE INTO ACCOUNT
2 CERTAIN ITEMS OF FOREIGN INCOME.—
3 ‘‘(A) IN GENERAL.—If, for any taxable
4 year, a taxpayer is a United States shareholder
5 of one or more controlled foreign corporations,
6 the adjusted financial statement income of such
7 taxpayer with respect to such controlled foreign
8 corporation (as determined under paragraph
9 (2)(C)) shall be adjusted to also take into ac-
10 count such taxpayer’s pro rata share (determined
11 under rules similar to the rules under section
12 951(a)(2)) of items taken into account in com-
13 puting the net income or loss set forth on the ap-
14 plicable financial statement (as adjusted under
15 rules similar to those that apply in determining
16 adjusted financial statement income) of each
17 such controlled foreign corporation with respect
18 to which such taxpayer is a United States share-
19 holder.
20 ‘‘(B) NEGATIVE ADJUSTMENTS.—In any
21 case in which the adjustment determined under
22 subparagraph (A) would result in a negative ad-
23 justment for such taxable year—
† HR 5376 EAS
17
1 ‘‘(i) no adjustment shall be made
2 under this paragraph for such taxable year,
3 and
4 ‘‘(ii) the amount of the adjustment de-
5 termined under this paragraph for the suc-
6 ceeding taxable year (determined without
7 regard to this paragraph) shall be reduced
8 by an amount equal to the negative adjust-
9 ment for such taxable year.
10 ‘‘(4) EFFECTIVELY CONNECTED INCOME.—In the
11 case of a foreign corporation, to determine adjusted fi-
12 nancial statement income, the principles of section
13 882 shall apply.
14 ‘‘(5) ADJUSTMENTS FOR CERTAIN TAXES.—Ad-
15 justed financial statement income shall be appro-
16 priately adjusted to disregard any Federal income
17 taxes, or income, war profits, or excess profits taxes
18 (within the meaning of section 901) with respect to
19 a foreign country or possession of the United States,
20 which are taken into account on the taxpayer’s appli-
21 cable financial statement. To the extent provided by
22 the Secretary, the preceding sentence shall not apply
23 to income, war profits, or excess profits taxes (within
24 the meaning of section 901) that are imposed by a
25 foreign country or possession of the United States and
† HR 5376 EAS
18
1 taken into account on the taxpayer’s applicable finan-
2 cial statement if the taxpayer does not choose to have
3 the benefits of subpart A of part III of subchapter N
4 for the taxable year. The Secretary shall prescribe
5 such regulations or other guidance as may be nec-
6 essary and appropriate to provide for the proper
7 treatment of current and deferred taxes for purposes
8 of this paragraph, including the time at which such
9 taxes are properly taken into account.
10 ‘‘(6) ADJUSTMENT WITH RESPECT TO DIS-
11 REGARDED ENTITIES.—Adjusted financial statement
12 income shall be adjusted to take into account any ad-
13 justed financial statement income of a disregarded en-
14 tity owned by the taxpayer.
15 ‘‘(7) SPECIAL RULE FOR COOPERATIVES.—In the
16 case of a cooperative to which section 1381 applies,
17 the adjusted financial statement income (determined
18 without regard to this paragraph) shall be reduced by
19 the amounts referred to in section 1382(b) (relating to
20 patronage dividends and per-unit retain allocations)
21 to the extent such amounts were not otherwise taken
22 into account in determining adjusted financial state-
23 ment income.
† HR 5376 EAS
19
1 ‘‘(8) RULES FOR ALASKA NATIVE CORPORA-
2 TIONS.—Adjusted financial statement income shall be
3 appropriately adjusted to allow—
4 ‘‘(A) cost recovery and depletion attrib-
5 utable to property the basis of which is deter-
6 mined under section 21(c) of the Alaska Native
7 Claims Settlement Act (43 U.S.C. 1620(c)), and
8 ‘‘(B) deductions for amounts payable made
9 pursuant to section 7(i) or section 7(j) of such
10 Act (43 U.S.C. 1606(i) and 1606(j)) only at such
11 time as the deductions are allowed for tax pur-
12 poses.
13 ‘‘(9) AMOUNTS ATTRIBUTABLE TO ELECTIONS
14 FOR DIRECT PAYMENT OF CERTAIN CREDITS.—Ad-
15 justed financial statement income shall be appro-
16 priately adjusted to disregard any amount treated as
17 a payment against the tax imposed by subtitle A pur-
18 suant to an election under section 48D(d) or 6417, to
19 the extent such amount was not otherwise taken into
20 account under paragraph (5).
21 ‘‘(10) CONSISTENT TREATMENT OF MORTGAGE
22 SERVICING INCOME OF TAXPAYER OTHER THAN A
23 REGULATED INVESTMENT COMPANY.—
24 ‘‘(A) IN GENERAL.—Adjusted financial
25 statement income shall be adjusted so as not to
† HR 5376 EAS
20
1 include any item of income in connection with
2 a mortgage servicing contract any earlier than
3 when such income is included in gross income
4 under any other provision of this chapter.
5 ‘‘(B) RULES FOR AMOUNTS NOT REP-
6 RESENTING REASONABLE COMPENSATION.—The
7 Secretary shall provide regulations to prevent the
8 avoidance of taxes imposed by this chapter with
9 respect to amounts not representing reasonable
10 compensation (as determined by the Secretary)
11 with respect to a mortgage servicing contract.
12 ‘‘(11) ADJUSTMENT WITH RESPECT TO DEFINED
13 BENEFIT PENSIONS.—
14 ‘‘(A) IN GENERAL.—Except as otherwise
15 provided in rules prescribed by the Secretary in
16 regulations or other guidance, adjusted financial
17 statement income shall be—
18 ‘‘(i) adjusted to disregard any amount
19 of income, cost, or expense that would other-
20 wise be included on the applicable financial
21 statement in connection with any covered
22 benefit plan,
23 ‘‘(ii) increased by any amount of in-
24 come in connection with any such covered
25 benefit plan that is included in the gross in-
† HR 5376 EAS
21
1 come of the corporation under any other
2 provision of this chapter, and
3 ‘‘(iii) reduced by deductions allowed
4 under any other provision of this chapter
5 with respect to any such covered benefit
6 plan.
7 ‘‘(B) COVERED BENEFIT PLAN.—For pur-
8 poses of this paragraph, the term ‘covered benefit
9 plan’ means—
10 ‘‘(i) a defined benefit plan (other than
11 a multiemployer plan described in section
12 414(f)) if the trust which is part of such
13 plan is an employees’ trust described in sec-
14 tion 401(a) which is exempt from tax under
15 section 501(a),
16 ‘‘(ii) any qualified foreign plan (as de-
17 fined in section 404A(e)), or
18 ‘‘(iii) any other defined benefit plan
19 which provides post-employment benefits
20 other than pension benefits.
21 ‘‘(12) TAX-EXEMPT ENTITIES.—In the case of an
22 organization subject to tax under section 511, ad-
23 justed financial statement income shall be appro-
24 priately adjusted to only take into account any ad-
25 justed financial statement income—
† HR 5376 EAS
22
1 ‘‘(A) of an unrelated trade or business (as
2 defined in section 513) of such organization, or
3 ‘‘(B) derived from debt-financed property
4 (as defined in section 514) to the extent that in-
5 come from such property is treated as unrelated
6 business taxable income.
7 ‘‘(13) DEPRECIATION.—Adjusted financial state-
8 ment income shall be—
9 ‘‘(A) reduced by depreciation deductions al-
10 lowed under section 167 with respect to property
11 to which section 168 applies to the extent of the
12 amount allowed as deductions in computing tax-
13 able income for the taxable year, and
14 ‘‘(B) appropriately adjusted—
15 ‘‘(i) to disregard any amount of depre-
16 ciation expense that is taken into account
17 on the taxpayer’s applicable financial state-
18 ment with respect to such property, and
19 ‘‘(ii) to take into account any other
20 item specified by the Secretary in order to
21 provide that such property is accounted for
22 in the same manner as it is accounted for
23 under this chapter.
24 ‘‘(14) QUALIFIED WIRELESS SPECTRUM.—
† HR 5376 EAS
23
1 ‘‘(A) IN GENERAL.—Adjusted financial
2 statement income shall be—
3 ‘‘(i) reduced by amortization deduc-
4 tions allowed under section 197 with respect
5 to qualified wireless spectrum to the extent
6 of the amount allowed as deductions in
7 computing taxable income for the taxable
8 year, and
9 ‘‘(ii) appropriately adjusted—
10 ‘‘(I) to disregard any amount of
11 amortization expense that is taken into
12 account on the taxpayer’s applicable fi-
13 nancial statement with respect to such
14 qualified wireless spectrum, and
15 ‘‘(II) to take into account any
16 other item specified by the Secretary in
17 order to provide that such qualified
18 wireless spectrum is accounted for in
19 the same manner as it is accounted for
20 under this chapter.
21 ‘‘(B) QUALIFIED WIRELESS SPECTRUM.—
22 For purposes of this paragraph, the term ‘quali-
23 fied wireless spectrum’ means wireless spectrum
24 which—
† HR 5376 EAS
24
1 ‘‘(i) is used in the trade or business of
2 a wireless telecommunications carrier, and
3 ‘‘(ii) was acquired after December 31,
4 2007, and before the date of enactment of
5 this section.
6 ‘‘(15) SECRETARIAL AUTHORITY TO ADJUST
7 ITEMS.—The Secretary shall issue regulations or other
8 guidance to provide for such adjustments to adjusted
9 financial statement income as the Secretary deter-
10 mines necessary to carry out the purposes of this sec-
11 tion, including adjustments—
12 ‘‘(A) to prevent the omission or duplication
13 of any item, and
14 ‘‘(B) to carry out the principles of part II
15 of subchapter C of this chapter (relating to cor-
16 porate liquidations), part III of subchapter C of
17 this chapter (relating to corporate organizations
18 and reorganizations), and part II of subchapter
19 K of this chapter (relating to partnership con-
20 tributions and distributions).
21 ‘‘(d) DEDUCTION FOR FINANCIAL STATEMENT NET OP-
22 ERATING LOSS.—
23 ‘‘(1) IN GENERAL.—Adjusted financial statement
24 income (determined after application of subsection (c)
† HR 5376 EAS
25
1 and without regard to this subsection) shall be re-
2 duced by an amount equal to the lesser of—
3 ‘‘(A) the aggregate amount of financial
4 statement net operating loss carryovers to the
5 taxable year, or
6 ‘‘(B) 80 percent of adjusted financial state-
7 ment income computed without regard to the de-
8 duction allowable under this subsection.
9 ‘‘(2) FINANCIAL STATEMENT NET OPERATING
10 LOSS CARRYOVER.—A financial statement net oper-
11 ating loss for any taxable year shall be a financial
12 statement net operating loss carryover to each taxable
13 year following the taxable year of the loss. The por-
14 tion of such loss which shall be carried to subsequent
15 taxable years shall be the amount of such loss remain-
16 ing (if any) after the application of paragraph (1).
17 ‘‘(3) FINANCIAL STATEMENT NET OPERATING
18 LOSS DEFINED.—For purposes of this subsection, the
19 term ‘financial statement net operating loss’ means
20 the amount of the net loss (if any) set forth on the
21 corporation’s applicable financial statement (deter-
22 mined after application of subsection (c) and without
23 regard to this subsection) for taxable years ending
24 after December 31, 2019.
† HR 5376 EAS
26
1 ‘‘(e) REGULATIONS AND OTHER GUIDANCE.—The Sec-
2 retary shall provide for such regulations and other guidance
3 as necessary to carry out the purposes of this section, in-
4 cluding regulations and other guidance relating to the effect
5 of the rules of this section on partnerships with income
6 taken into account by an applicable corporation.’’.
7 (2) CLERICAL AMENDMENT.—The table of sec-
8 tions for part VI of subchapter A of chapter 1 is
9 amended by inserting after the item relating to sec-
10 tion 56 the following new item:
‘‘Sec. 56A. Adjusted financial statement income.’’.
11 (c) CORPORATE AMT FOREIGN TAX CREDIT.—Section
12 59, as amended by this section, is amended by adding at
13 the end the following new subsection:
14 ‘‘(l) CORPORATE AMT FOREIGN TAX CREDIT.—
15 ‘‘(1) IN GENERAL.—For purposes of this part, if
16 an applicable corporation chooses to have the benefits
17 of subpart A of part III of subchapter N for any tax-
18 able year, the corporate AMT foreign tax credit for
19 the taxable year of the applicable corporation is an
20 amount equal to sum of—
21 ‘‘(A) the lesser of—
22 ‘‘(i) the aggregate of the applicable cor-
23 poration’s pro rata share (as determined
24 under section 56A(c)(3)) of the amount of
25 income, war profits, and excess profits taxes
† HR 5376 EAS
27
1 (within the meaning of section 901) im-
2 posed by any foreign country or possession
3 of the United States which are—
4 ‘‘(I) taken into account on the ap-
5 plicable financial statement of each
6 controlled foreign corporation with re-
7 spect to which the applicable corpora-
8 tion is a United States shareholder,
9 and
10 ‘‘(II) paid or accrued (for Federal
11 income tax purposes) by each such con-
12 trolled foreign corporation, or
13 ‘‘(ii) the product of the amount of the
14 adjustment under section 56A(c)(3) and the
15 percentage specified in section
16 55(b)(2)(A)(i), and
17 ‘‘(B) in the case of an applicable corpora-
18 tion that is a domestic corporation, the amount
19 of income, war profits, and excess profits taxes
20 (within the meaning of section 901) imposed by
21 any foreign country or possession of the United
22 States to the extent such taxes are—
23 ‘‘(i) taken into account on the applica-
24 ble corporation’s applicable financial state-
25 ment, and
† HR 5376 EAS
28
1 ‘‘(ii) paid or accrued (for Federal in-
2 come tax purposes) by the applicable cor-
3 poration.
4 ‘‘(2) CARRYOVER OF EXCESS TAX PAID.—For
5 any taxable year for which an applicable corporation
6 chooses to have the benefits of subpart A of part III
7 of subchapter N, the excess of the amount described in
8 paragraph (1)(A)(i) over the amount described in
9 paragraph (1)(A)(ii) shall increase the amount de-
10 scribed in paragraph (1)(A)(i) in any of the first 5
11 succeeding taxable years to the extent not taken into
12 account in a prior taxable year.
13 ‘‘(3) REGULATIONS OR OTHER GUIDANCE.—The
14 Secretary shall provide for such regulations or other
15 guidance as is necessary to carry out the purposes of
16 this subsection.’’.
17 (d) TREATMENT OF GENERAL BUSINESS CREDIT.—
18 Section 38(c)(6)(E) is amended to read as follows:
19 ‘‘(E) CORPORATIONS.—In the case of a cor-
20 poration—
21 ‘‘(i) the first sentence of paragraph (1)
22 shall be applied by substituting ‘25 percent
23 of the taxpayer’s net income tax as exceeds
24 $25,000’ for ‘the greater of’ and all that fol-
25 lows,
† HR 5376 EAS
29
1 ‘‘(ii) paragraph (2)(A) shall be applied
2 without regard to clause (ii)(I) thereof, and
3 ‘‘(iii) paragraph (4)(A) shall be ap-
4 plied without regard to clause (ii)(I) there-
5 of.’’.
6 (e) CREDIT FOR PRIOR YEAR MINIMUM TAX LIABIL-
7 ITY.—
8 (1) IN GENERAL.—Section 53(e) is amended to
9 read as follows:
10 ‘‘(e) APPLICATION TO APPLICABLE CORPORATIONS.—
11 In the case of a corporation—
12 ‘‘(1) subsection (b)(1) shall be applied by sub-
13 stituting ‘the net minimum tax for all prior taxable
14 years beginning after 2022’ for ‘the adjusted net min-
15 imum tax imposed for all prior taxable years begin-
16 ning after 1986’, and
17 ‘‘(2) the amount determined under subsection
18 (c)(1) shall be increased by the amount of tax im-
19 posed under section 59A for the taxable year.’’.
20 (2) CONFORMING AMENDMENTS.—Section 53(d)
21 is amended—
22 (A) in paragraph (2), by striking ‘‘, except
23 that in the case’’ and all that follows through
24 ‘‘treated as zero’’, and
25 (B) by striking paragraph (3).
† HR 5376 EAS
30
1 (f) EFFECTIVE DATE.—The amendments made by this
2 section shall apply to taxable years beginning after Decem-
3 ber 31, 2022.
4 PART 2—EXCISE TAX ON REPURCHASE OF
5 CORPORATE STOCK
6 SEC. 10201. EXCISE TAX ON REPURCHASE OF CORPORATE
7 STOCK.
8 (a) IN GENERAL.—Subtitle D is amended by inserting
9 after chapter 36 the following new chapter:
10 ‘‘CHAPTER 37—REPURCHASE OF
11 CORPORATE STOCK
‘‘Sec. 4501. Repurchase of corporate stock.
12 ‘‘SEC. 4501. REPURCHASE OF CORPORATE STOCK.
13 ‘‘(a) GENERAL RULE.—There is hereby imposed on
14 each covered corporation a tax equal to 1 percent of the
15 fair market value of any stock of the corporation which is
16 repurchased by such corporation during the taxable year.
17 ‘‘(b) COVERED CORPORATION.—For purposes of this
18 section, the term ‘covered corporation’ means any domestic
19 corporation the stock of which is traded on an established
20 securities market (within the meaning of section
21 7704(b)(1)).
22 ‘‘(c) REPURCHASE.—For purposes of this section—
23 ‘‘(1) IN GENERAL.—The term ‘repurchase’
24 means—
† HR 5376 EAS
31
1 ‘‘(A) a redemption within the meaning of
2 section 317(b) with regard to the stock of a cov-
3 ered corporation, and
4 ‘‘(B) any transaction determined by the
5 Secretary to be economically similar to a trans-
6 action described in subparagraph (A).
7 ‘‘(2) TREATMENT OF PURCHASES BY SPECIFIED
8 AFFILIATES.—
9 ‘‘(A) IN GENERAL.—The acquisition of stock
10 of a covered corporation by a specified affiliate
11 of such covered corporation, from a person who
12 is not the covered corporation or a specified affil-
13 iate of such covered corporation, shall be treated
14 as a repurchase of the stock of the covered cor-
15 poration by such covered corporation.
16 ‘‘(B) SPECIFIED AFFILIATE.—For purposes
17 of this section, the term ‘specified affiliate’
18 means, with respect to any corporation—
19 ‘‘(i) any corporation more than 50
20 percent of the stock of which is owned (by
21 vote or by value), directly or indirectly, by
22 such corporation, and
23 ‘‘(ii) any partnership more than 50
24 percent of the capital interests or profits in-
† HR 5376 EAS
32
1 terests of which is held, directly or indi-
2 rectly, by such corporation.
3 ‘‘(3) ADJUSTMENT.—The amount taken into ac-
4 count under subsection (a) with respect to any stock
5 repurchased by a covered corporation shall be reduced
6 by the fair market value of any stock issued by the
7 covered corporation during the taxable year, includ-
8 ing the fair market value of any stock issued or pro-
9 vided to employees of such covered corporation or em-
10 ployees of a specified affiliate of such covered corpora-
11 tion during the taxable year, whether or not such
12 stock is issued or provided in response to the exercise
13 of an option to purchase such stock.
14 ‘‘(d) SPECIAL RULES FOR ACQUISITION OF STOCK OF
15 CERTAIN FOREIGN CORPORATIONS.—
16 ‘‘(1) IN GENERAL.—In the case of an acquisition
17 of stock of an applicable foreign corporation by a
18 specified affiliate of such corporation (other than a
19 foreign corporation or a foreign partnership (unless
20 such partnership has a domestic entity as a direct or
21 indirect partner)) from a person who is not the appli-
22 cable foreign corporation or a specified affiliate of
23 such applicable foreign corporation, for purposes of
24 this section—
† HR 5376 EAS
33
1 ‘‘(A) such specified affiliate shall be treated
2 as a covered corporation with respect to such ac-
3 quisition,
4 ‘‘(B) such acquisition shall be treated as a
5 repurchase of stock of a covered corporation by
6 such covered corporation, and
7 ‘‘(C) the adjustment under subsection (c)(3)
8 shall be determined only with respect to stock
9 issued or provided by such specified affiliate to
10 employees of the specified affiliate.
11 ‘‘(2) SURROGATE FOREIGN CORPORATIONS.—In
12 the case of a repurchase of stock of a covered surrogate
13 foreign corporation by such covered surrogate foreign
14 corporation, or an acquisition of stock of a covered
15 surrogate foreign corporation by a specified affiliate
16 of such corporation, for purposes of this section—
17 ‘‘(A) the expatriated entity with respect to
18 such covered surrogate foreign corporation shall
19 be treated as a covered corporation with respect
20 to such repurchase or acquisition,
21 ‘‘(B) such repurchase or acquisition shall be
22 treated as a repurchase of stock of a covered cor-
23 poration by such covered corporation, and
24 ‘‘(C) the adjustment under subsection (c)(3)
25 shall be determined only with respect to stock
† HR 5376 EAS
34
1 issued or provided by such expatriated entity to
2 employees of the expatriated entity.
3 ‘‘(3) DEFINITIONS.—For purposes of this sub-
4 section—
5 ‘‘(A) APPLICABLE FOREIGN CORPORA-
6 TION.—The term ‘applicable foreign corporation’
7 means any foreign corporation the stock of which
8 is traded on an established securities market
9 (within the meaning of section 7704(b)(1)).
10 ‘‘(B) COVERED SURROGATE FOREIGN COR-
11 PORATION.—The term ‘covered surrogate foreign
12 corporation’ means any surrogate foreign cor-
13 poration (as determined under section
14 7874(a)(2)(B) by substituting ‘September 20,
15 2021’ for ‘March 4, 2003’ each place it appears)
16 the stock of which is traded on an established se-
17 curities market (within the meaning of section
18 7704(b)(1)), but only with respect to taxable
19 years which include any portion of the applica-
20 ble period with respect to such corporation under
21 section 7874(d)(1).
22 ‘‘(C) EXPATRIATED ENTITY.—The term ‘ex-
23 patriated entity’ has the meaning given such
24 term by section 7874(a)(2)(A).
25 ‘‘(e) EXCEPTIONS.—Subsection (a) shall not apply—
† HR 5376 EAS
35
1 ‘‘(1) to the extent that the repurchase is part of
2 a reorganization (within the meaning of section
3 368(a)) and no gain or loss is recognized on such re-
4 purchase by the shareholder under chapter 1 by rea-
5 son of such reorganization,
6 ‘‘(2) in any case in which the stock repurchased
7 is, or an amount of stock equal to the value of the
8 stock repurchased is, contributed to an employer-spon-
9 sored retirement plan, employee stock ownership plan,
10 or similar plan,
11 ‘‘(3) in any case in which the total value of the
12 stock repurchased during the taxable year does not ex-
13 ceed $1,000,000,
14 ‘‘(4) under regulations prescribed by the Sec-
15 retary, in cases in which the repurchase is by a dealer
16 in securities in the ordinary course of business,
17 ‘‘(5) to repurchases by a regulated investment
18 company (as defined in section 851) or a real estate
19 investment trust, or
20 ‘‘(6) to the extent that the repurchase is treated
21 as a dividend for purposes of this title.
22 ‘‘(f) REGULATIONS AND GUIDANCE.—The Secretary
23 shall prescribe such regulations and other guidance as are
24 necessary or appropriate to carry out, and to prevent the
† HR 5376 EAS
36
1 avoidance of, the purposes of this section, including regula-
2 tions and other guidance—
3 ‘‘(1) to prevent the abuse of the exceptions pro-
4 vided by subsection (e),
5 ‘‘(2) to address special classes of stock and pre-
6 ferred stock, and
7 ‘‘(3) for the application of the rules under sub-
8 section (d).’’.
9 (b) TAX NOT DEDUCTIBLE.—Paragraph (6) of section
10 275(a) is amended by inserting ‘‘37,’’ before ‘‘41’’.
11 (c) CLERICAL AMENDMENT.—The table of chapters for
12 subtitle D is amended by inserting after the item relating
13 to chapter 36 the following new item:
‘‘CHAPTER 37—REPURCHASE OF CORPORATE STOCK’’.
14 (d) EFFECTIVE DATE.—The amendments made by this
15 section shall apply to repurchases (within the meaning of
16 section 4501(c) of the Internal Revenue Code of 1986, as
17 added by this section) of stock after December 31, 2022.
18 PART 3—FUNDING THE INTERNAL REVENUE
19 SERVICE AND IMPROVING TAXPAYER COM-
20 PLIANCE
21 SEC. 10301. ENHANCEMENT OF INTERNAL REVENUE SERV-
22 ICE RESOURCES.
23 IN GENERAL.—The following sums are appropriated,
24 out of any money in the Treasury not otherwise appro-
25 priated, for the fiscal year ending September 30, 2022:
† HR 5376 EAS
37
1 (1) INTERNAL REVENUE SERVICE.—
2 (A) IN GENERAL.—
3 (i) TAXPAYER SERVICES.—For nec-
4 essary expenses of the Internal Revenue
5 Service to provide taxpayer services, includ-
6 ing pre-filing assistance and education, fil-
7 ing and account services, taxpayer advocacy
8 services, and other services as authorized by
9 5 U.S.C. 3109, at such rates as may be de-
10 termined by the Commissioner,
11 $3,181,500,000, to remain available until
12 September 30, 2031: Provided, That these
13 amounts shall be in addition to amounts
14 otherwise available for such purposes.
15 (ii) ENFORCEMENT.—For necessary ex-
16 penses for tax enforcement activities of the
17 Internal Revenue Service to determine and
18 collect owed taxes, to provide legal and liti-
19 gation support, to conduct criminal inves-
20 tigations (including investigative tech-
21 nology), to provide digital asset monitoring
22 and compliance activities, to enforce crimi-
23 nal statutes related to violations of internal
24 revenue laws and other financial crimes, to
25 purchase and hire passenger motor vehicles
† HR 5376 EAS
38
1 (31 U.S.C. 1343(b)), and to provide other
2 services as authorized by 5 U.S.C. 3109, at
3 such rates as may be determined by the
4 Commissioner, $45,637,400,000, to remain
5 available until September 30, 2031: Pro-
6 vided, That these amounts shall be in addi-
7 tion to amounts otherwise available for such
8 purposes.
9 (iii) OPERATIONS SUPPORT.—For nec-
10 essary expenses of the Internal Revenue
11 Service to support taxpayer services and en-
12 forcement programs, including rent pay-
13 ments; facilities services; printing; postage;
14 physical security; headquarters and other
15 IRS-wide administration activities; re-
16 search and statistics of income; tele-
17 communications; information technology de-
18 velopment, enhancement, operations, main-
19 tenance, and security; the hire of passenger
20 motor vehicles (31 U.S.C. 1343(b)); the op-
21 erations of the Internal Revenue Service
22 Oversight Board; and other services as au-
23 thorized by 5 U.S.C. 3109, at such rates as
24 may be determined by the Commissioner,
25 $25,326,400,000, to remain available until
† HR 5376 EAS
39
1 September 30, 2031: Provided, That these
2 amounts shall be in addition to amounts
3 otherwise available for such purposes.
4 (iv) BUSINESS SYSTEMS MODERNIZA-
5 TION.—For necessary expenses of the Inter-
6 nal Revenue Service’s business systems mod-
7 ernization program, including development
8 of callback technology and other technology
9 to provide a more personalized customer
10 service but not including the operation and
11 maintenance of legacy systems,
12 $4,750,700,000, to remain available until
13 September 30, 2031: Provided, That these
14 amounts shall be in addition to amounts
15 otherwise available for such purposes.
16 (B) TASK FORCE TO DESIGN AN IRS-RUN
17 FREE ‘‘DIRECT EFILE’’ TAX RETURN SYSTEM.—
18 For necessary expenses of the Internal Revenue
19 Service to deliver to Congress, within nine
20 months following the date of the enactment of
21 this Act, a report on (I) the cost (including op-
22 tions for differential coverage based on taxpayer
23 adjusted gross income and return complexity) of
24 developing and running a free direct efile tax re-
25 turn system, including costs to build and admin-
† HR 5376 EAS
40
1 ister each release, with a focus on multi-lingual
2 and mobile-friendly features and safeguards for
3 taxpayer data; (II) taxpayer opinions, expecta-
4 tions, and level of trust, based on surveys, for
5 such a free direct efile system; and (III) the
6 opinions of an independent third-party on the
7 overall feasibility, approach, schedule, cost, orga-
8 nizational design, and Internal Revenue Service
9 capacity to deliver such a direct efile tax return
10 system, $15,000,000, to remain available until
11 September 30, 2023: Provided, That these
12 amounts shall be in addition to amounts other-
13 wise available for such purposes.
14 (2) TREASURY INSPECTOR GENERAL FOR TAX
15 ADMINISTRATION.—For necessary expenses of the
16 Treasury Inspector General for Tax Administration
17 in carrying out the Inspector General Act of 1978, as
18 amended, including purchase and hire of passenger
19 motor vehicles (31 U.S.C. 1343(b)); and services au-
20 thorized by 5 U.S.C. 3109, at such rates as may be
21 determined by the Inspector General for Tax Admin-
22 istration, $403,000,000, to remain available until
23 September 30, 2031: Provided, That these amounts
24 shall be in addition to amounts otherwise available
25 for such purposes.
† HR 5376 EAS
41
1 (3) OFFICE OF TAX POLICY.—For necessary ex-
2 penses of the Office of Tax Policy of the Department
3 of the Treasury to carry out functions related to pro-
4 mulgating regulations under the Internal Revenue
5 Code of 1986, $104,533,803, to remain available until
6 September 30, 2031: Provided, That these amounts
7 shall be in addition to amounts otherwise available
8 for such purposes.
9 (4) UNITED STATES TAX COURT.—For necessary
10 expenses of the United States Tax Court, including
11 contract reporting and other services as authorized by
12 5 U.S.C. 3109; $153,000,000, to remain available
13 until September 30, 2031: Provided, That these
14 amounts shall be in addition to amounts otherwise
15 available for such purposes.
16 (5) TREASURY DEPARTMENTAL OFFICES.—For
17 necessary expenses of the Departmental Offices of the
18 Department of the Treasury to provide for oversight
19 and implementation support for actions by the Inter-
20 nal Revenue Service to implement this Act and the
21 amendments made by this Act, $50,000,000, to re-
22 main available until September 30, 2031: Provided,
23 That these amounts shall be in addition to amounts
24 otherwise available for such purposes.
† HR 5376 EAS
42
1 Subtitle B—Prescription Drug
2 Pricing Reform
3 PART 1—LOWERING PRICES THROUGH DRUG
4 PRICE NEGOTIATION
5 SEC. 11001. PROVIDING FOR LOWER PRICES FOR CERTAIN
6 HIGH-PRICED SINGLE SOURCE DRUGS.
7 (a) PROGRAM TO LOWER PRICES FOR CERTAIN HIGH-
8 PRICED SINGLE SOURCE DRUGS.—Title XI of the Social
9 Security Act is amended by adding after section 1184 (42
10 U.S.C. 1320e–3) the following new part:
11 ‘‘PART E—PRICE NEGOTIATION PROGRAM TO
12 LOWER PRICES FOR CERTAIN HIGH-PRICED
13 SINGLE SOURCE DRUGS
14 ‘‘SEC. 1191. ESTABLISHMENT OF PROGRAM.
15 ‘‘(a) IN GENERAL.—The Secretary shall establish a
16 Drug Price Negotiation Program (in this part referred to
17 as the ‘program’). Under the program, with respect to each
18 price applicability period, the Secretary shall—
19 ‘‘(1) publish a list of selected drugs in accord-
20 ance with section 1192;
21 ‘‘(2) enter into agreements with manufacturers of
22 selected drugs with respect to such period, in accord-
23 ance with section 1193;
† HR 5376 EAS
43
1 ‘‘(3) negotiate and, if applicable, renegotiate
2 maximum fair prices for such selected drugs, in ac-
3 cordance with section 1194;
4 ‘‘(4) carry out the publication and administra-
5 tive duties and compliance monitoring in accordance
6 with sections 1195 and 1196.
7 ‘‘(b) DEFINITIONS RELATING TO TIMING.—For pur-
8 poses of this part:
9 ‘‘(1) INITIAL PRICE APPLICABILITY YEAR.—The
10 term ‘initial price applicability year’ means a year
11 (beginning with 2026).
12 ‘‘(2) PRICE APPLICABILITY PERIOD.—The term
13 ‘price applicability period’ means, with respect to a
14 qualifying single source drug, the period beginning
15 with the first initial price applicability year with re-
16 spect to which such drug is a selected drug and end-
17 ing with the last year during which the drug is a se-
18 lected drug.
19 ‘‘(3) SELECTED DRUG PUBLICATION DATE.—The
20 term ‘selected drug publication date’ means, with re-
21 spect to each initial price applicability year, Feb-
22 ruary 1 of the year that begins 2 years prior to such
23 year.
24 ‘‘(4) NEGOTIATION PERIOD.—The term ‘negotia-
25 tion period’ means, with respect to an initial price
† HR 5376 EAS
44
1 applicability year with respect to a selected drug, the
2 period—
3 ‘‘(A) beginning on the sooner of—
4 ‘‘(i) the date on which the manufac-
5 turer of the drug and the Secretary enter
6 into an agreement under section 1193 with
7 respect to such drug; or
8 ‘‘(ii) February 28 following the selected
9 drug publication date with respect to such
10 selected drug; and
11 ‘‘(B) ending on November 1 of the year that
12 begins 2 years prior to the initial price applica-
13 bility year.
14 ‘‘(c) OTHER DEFINITIONS.—For purposes of this part:
15 ‘‘(1) MANUFACTURER.—The term ‘manufacturer’
16 has the meaning given that term in section
17 1847A(c)(6)(A).
18 ‘‘(2) MAXIMUM FAIR PRICE ELIGIBLE INDI-
19 VIDUAL.—The term ‘maximum fair price eligible in-
20 dividual’ means, with respect to a selected drug—
21 ‘‘(A) in the case such drug is dispensed to
22 the individual at a pharmacy, by a mail order
23 service, or by another dispenser, an individual
24 who is enrolled in a prescription drug plan
25 under part D of title XVIII or an MA–PD plan
† HR 5376 EAS
45
1 under part C of such title if coverage is provided
2 under such plan for such selected drug; and
3 ‘‘(B) in the case such drug is furnished or
4 administered to the individual by a hospital,
5 physician, or other provider of services or sup-
6 plier, an individual who is enrolled under part
7 B of title XVIII, including an individual who is
8 enrolled in an MA plan under part C of such
9 title, if payment may be made under part B for
10 such selected drug.
11 ‘‘(3) MAXIMUM FAIR PRICE.—The term ‘max-
12 imum fair price’ means, with respect to a year dur-
13 ing a price applicability period and with respect to
14 a selected drug (as defined in section 1192(c)) with
15 respect to such period, the price negotiated pursuant
16 to section 1194, and updated pursuant to section
17 1195(b), as applicable, for such drug and year.
18 ‘‘(4) REFERENCE PRODUCT.—The term ‘reference
19 product’ has the meaning given such term in section
20 351(i) of the Public Health Service Act.
21 ‘‘(5) TOTAL EXPENDITURES.—The term ‘total ex-
22 penditures’ includes, in the case of expenditures with
23 respect to part D of title XVIII, the total gross covered
24 prescription drug costs (as defined in section 1860D–
25 15(b)(3)). The term ‘total expenditures’ excludes, in
† HR 5376 EAS
46
1 the case of expenditures with respect to part B of such
2 title, expenditures for a drug or biological product
3 that are bundled or packaged into the payment for
4 another service.
5 ‘‘(6) UNIT.—The term ‘unit’ means, with respect
6 to a drug or biological product, the lowest identifiable
7 amount (such as a capsule or tablet, milligram of
8 molecules, or grams) of the drug or biological product
9 that is dispensed or furnished.
10 ‘‘(d) TIMING FOR INITIAL PRICE APPLICABILITY YEAR
11 2026.—Notwithstanding the provisions of this part, in the
12 case of initial price applicability year 2026, the following
13 rules shall apply for purposes of implementing the program:
14 ‘‘(1) Subsection (b)(3) shall be applied by sub-
15 stituting ‘September 1, 2023’ for ‘, with respect to
16 each initial price applicability year, February 1 of
17 the year that begins 2 years prior to such year’.
18 ‘‘(2) Subsection (b)(4) shall be applied—
19 ‘‘(A) in subparagraph (A)(ii), by sub-
20 stituting ‘October 1, 2023’ for ‘February 28 fol-
21 lowing the selected drug publication date with
22 respect to such selected drug’; and
23 ‘‘(B) in subparagraph (B), by substituting
24 ‘August 1, 2024’ for ‘November 1 of the year that
† HR 5376 EAS
47
1 begins 2 years prior to the initial price applica-
2 bility year’.
3 ‘‘(3) Section 1192 shall be applied—
4 ‘‘(A) in subsection (b)(1)(A), by substituting
5 ‘during the period beginning on June 1, 2022,
6 and ending on May 31, 2023’ for ‘during the
7 most recent period of 12 months prior to the se-
8 lected drug publication date (but ending not
9 later than October 31 of the year prior to the
10 year of such drug publication date), with respect
11 to such year, for which data are available’; and
12 ‘‘(B) in subsection (d)(1)(A), by sub-
13 stituting ‘during the period beginning on June
14 1, 2022, and ending on May 31, 2023’ for ‘dur-
15 ing the most recent period for which data are
16 available of at least 12 months prior to the se-
17 lected drug publication date (but ending no later
18 than October 31 of the year prior to the year of
19 such drug publication date), with respect to such
20 year’.
21 ‘‘(4) Section 1193(a) shall be applied by sub-
22 stituting ‘October 1, 2023’ for ‘February 28 following
23 the selected drug publication date with respect to such
24 selected drug’.
25 ‘‘(5) Section 1194(b)(2) shall be applied—
† HR 5376 EAS
48
1 ‘‘(A) in subparagraph (A), by substituting
2 ‘October 2, 2023’ for ‘March 1 of the year of the
3 selected drug publication date, with respect to the
4 selected drug’;
5 ‘‘(B) in subparagraph (B), by substituting
6 ‘February 1, 2024’ for ‘the June 1 following the
7 selected drug publication date’; and
8 ‘‘(C) in subparagraph (E), by substituting
9 ‘August 1, 2024’ for ‘the first day of November
10 following the selected drug publication date, with
11 respect to the initial price applicability year ’.
12 ‘‘(6) Section 1195(a)(1) shall be applied by sub-
13 stituting ‘September 1, 2024’ for ‘November 30 of the
14 year that is 2 years prior to such initial price appli-
15 cability year’.
16 ‘‘SEC. 1192. SELECTION OF NEGOTIATION-ELIGIBLE DRUGS
17 AS SELECTED DRUGS.
18 ‘‘(a) IN GENERAL.—Not later than the selected drug
19 publication date with respect to an initial price applica-
20 bility year, in accordance with subsection (b), the Secretary
21 shall select and publish a list of—
22 ‘‘(1) with respect to the initial price applica-
23 bility year 2026, 10 negotiation-eligible drugs de-
24 scribed in subparagraph (A) of subsection (d)(1), but
25 not subparagraph (B) of such subsection, with respect
† HR 5376 EAS
49
1 to such year (or, all (if such number is less than 10)
2 such negotiation-eligible drugs with respect to such
3 year);
4 ‘‘(2) with respect to the initial price applica-
5 bility year 2027, 15 negotiation-eligible drugs de-
6 scribed in subparagraph (A) of subsection (d)(1), but
7 not subparagraph (B) of such subsection, with respect
8 to such year (or, all (if such number is less than 15)
9 such negotiation-eligible drugs with respect to such
10 year);
11 ‘‘(3) with respect to the initial price applica-
12 bility year 2028, 15 negotiation-eligible drugs de-
13 scribed in subparagraph (A) or (B) of subsection
14 (d)(1) with respect to such year (or, all (if such num-
15 ber is less than 15) such negotiation-eligible drugs
16 with respect to such year); and
17 ‘‘(4) with respect to the initial price applica-
18 bility year 2029 or a subsequent year, 20 negotiation-
19 eligible drugs described in subparagraph (A) or (B)
20 of subsection (d)(1), with respect to such year (or, all
21 (if such number is less than 20) such negotiation-eli-
22 gible drugs with respect to such year).
23 Subject to subsection (c)(2) and section 1194(f)(5), each
24 drug published on the list pursuant to the previous sentence
25 shall be subject to the negotiation process under section 1194
† HR 5376 EAS
50
1 for the negotiation period with respect to such initial price
2 applicability year (and the renegotiation process under
3 such section as applicable for any subsequent year during
4 the applicable price applicability period).
5 ‘‘(b) SELECTION OF DRUGS.—
6 ‘‘(1) IN GENERAL.—In carrying out subsection
7 (a), subject to paragraph (2), the Secretary shall,
8 with respect to an initial price applicability year, do
9 the following:
10 ‘‘(A) Rank negotiation-eligible drugs de-
11 scribed in subsection (d)(1) according to the total
12 expenditures for such drugs under parts B and
13 D of title XVIII, as determined by the Secretary,
14 during the most recent period of 12 months prior
15 to the selected drug publication date (but ending
16 not later than October 31 of the year prior to the
17 year of such drug publication date), with respect
18 to such year, for which data are available, with
19 the negotiation-eligible drugs with the highest
20 total expenditures being ranked the highest.
21 ‘‘(B) Select from such ranked drugs with re-
22 spect to such year the negotiation-eligible drugs
23 with the highest such rankings.
24 ‘‘(2) HIGH SPEND PART D DRUGS FOR 2026 AND
25 2027.—With respect to the initial price applicability
† HR 5376 EAS
51
1 year 2026 and with respect to the initial price appli-
2 cability year 2027, the Secretary shall apply para-
3 graph (1) as if the reference to ‘negotiation-eligible
4 drugs described in subsection (d)(1)’ were a reference
5 to ‘negotiation-eligible drugs described in subsection
6 (d)(1)(A)’ and as if the reference to ‘total expendi-
7 tures for such drugs under parts B and D of title
8 XVIII’ were a reference to ‘total expenditures for such
9 drugs under part D of title XVIII’.
10 ‘‘(c) SELECTED DRUG.—
11 ‘‘(1) IN GENERAL.—For purposes of this part, in
12 accordance with subsection (e)(2) and subject to para-
13 graph (2), each negotiation-eligible drug included on
14 the list published under subsection (a) with respect to
15 an initial price applicability year shall be referred to
16 as a ‘selected drug’ with respect to such year and each
17 subsequent year beginning before the first year that
18 begins at least 9 months after the date on which the
19 Secretary determines at least one drug or biological
20 product—
21 ‘‘(A) is approved or licensed (as applica-
22 ble)—
23 ‘‘(i) under section 505(j) of the Federal
24 Food, Drug, and Cosmetic Act using such
25 drug as the listed drug; or
† HR 5376 EAS
52
1 ‘‘(ii) under section 351(k) of the Public
2 Health Service Act using such drug as the
3 reference product; and
4 ‘‘(B) is marketed pursuant to such approval
5 or licensure.
6 ‘‘(2) CLARIFICATION.—A negotiation-eligible
7 drug—
8 ‘‘(A) that is included on the list published
9 under subsection (a) with respect to an initial
10 price applicability year; and
11 ‘‘(B) for which the Secretary makes a deter-
12 mination described in paragraph (1) before or
13 during the negotiation period with respect to
14 such initial price applicability year;
15 shall not be subject to the negotiation process under
16 section 1194 with respect to such negotiation period
17 and shall continue to be considered a selected drug
18 under this part with respect to the number of negotia-
19 tion-eligible drugs published on the list under sub-
20 section (a) with respect to such initial price applica-
21 bility year.
22 ‘‘(d) NEGOTIATION-ELIGIBLE DRUG.—
23 ‘‘(1) IN GENERAL.—For purposes of this part,
24 subject to paragraph (2), the term ‘negotiation-eligible
25 drug’ means, with respect to the selected drug publica-
† HR 5376 EAS
53
1 tion date with respect to an initial price applicability
2 year, a qualifying single source drug, as defined in
3 subsection (e), that is described in either of the fol-
4 lowing subparagraphs (or, with respect to the initial
5 price applicability year 2026 or 2027, that is de-
6 scribed in subparagraph (A)):
7 ‘‘(A) PART D HIGH SPEND DRUGS.—The
8 qualifying single source drug is, determined in
9 accordance with subsection (e)(2), among the 50
10 qualifying single source drugs with the highest
11 total expenditures under part D of title XVIII,
12 as determined by the Secretary in accordance
13 with paragraph (3), during the most recent 12-
14 month period for which data are available prior
15 to such selected drug publication date (but end-
16 ing no later than October 31 of the year prior
17 to the year of such drug publication date).
18 ‘‘(B) PART B HIGH SPEND DRUGS.—The
19 qualifying single source drug is, determined in
20 accordance with subsection (e)(2), among the 50
21 qualifying single source drugs with the highest
22 total expenditures under part B of title XVIII,
23 as determined by the Secretary in accordance
24 with paragraph (3), during such most recent 12-
25 month period, as described in subparagraph (A).
† HR 5376 EAS
54
1 ‘‘(2) EXCEPTION FOR SMALL BIOTECH DRUGS.—
2 ‘‘(A) IN GENERAL.—Subject to subpara-
3 graph (C), the term ‘negotiation-eligible drug’
4 shall not include, with respect to the initial price
5 applicability years 2026, 2027, and 2028, a
6 qualifying single source drug that meets either of
7 the following:
8 ‘‘(i) PART D DRUGS.—The total ex-
9 penditures for the qualifying single source
10 drug under part D of title XVIII, as deter-
11 mined by the Secretary in accordance with
12 paragraph (3)(B), during 2021—
13 ‘‘(I) are equal to or less than 1
14 percent of the total expenditures under
15 such part D, as so determined, for all
16 covered part D drugs (as defined in
17 section 1860D–2(e)) during such year;
18 and
19 ‘‘(II) are equal to at least 80 per-
20 cent of the total expenditures under
21 such part D, as so determined, for all
22 covered part D drugs for which the
23 manufacturer of the drug has an agree-
24 ment in effect under section 1860D–
25 14A during such year.
† HR 5376 EAS
55
1 ‘‘(ii) PART B DRUGS.—The total ex-
2 penditures for the qualifying single source
3 drug under part B of title XVIII, as deter-
4 mined by the Secretary in accordance with
5 paragraph (3)(B), during 2021—
6 ‘‘(I) are equal to or less than 1
7 percent of the total expenditures under
8 such part B, as so determined, for all
9 qualifying single source drugs for
10 which payment may be made under
11 such part B during such year; and
12 ‘‘(II) are equal to at least 80 per-
13 cent of the total expenditures under
14 such part B, as so determined, for all
15 qualifying single source drugs of the
16 manufacturer for which payment may
17 be made under such part B during
18 such year.
19 ‘‘(B) CLARIFICATIONS RELATING TO MANU-
20 FACTURERS.—
21 ‘‘(i) AGGREGATION RULE.—All persons
22 treated as a single employer under sub-
23 section (a) or (b) of section 52 of the Inter-
24 nal Revenue Code of 1986 shall be treated
† HR 5376 EAS
56
1 as one manufacturer for purposes of this
2 paragraph.
3 ‘‘(ii) LIMITATION.—A drug shall not be
4 considered to be a qualifying single source
5 drug described in clause (i) or (ii) of sub-
6 paragraph (A) if the manufacturer of such
7 drug is acquired after 2021 by another
8 manufacturer that does not meet the defini-
9 tion of a specified manufacturer under sec-
10 tion 1860D–14C(g)(4)(B)(ii), effective at the
11 beginning of the plan year immediately fol-
12 lowing such acquisition or, in the case of an
13 acquisition before 2025, effective January 1,
14 2025.
15 ‘‘(C) DRUGS NOT INCLUDED AS SMALL
16 BIOTECH DRUGS.—A new formulation, such as
17 an extended release formulation, of a qualifying
18 single source drug shall not be considered a
19 qualifying single source drug described in sub-
20 paragraph (A).
21 ‘‘(3) CLARIFICATIONS AND DETERMINATIONS.—
22 ‘‘(A) PREVIOUSLY SELECTED DRUGS AND
23 SMALL BIOTECH DRUGS EXCLUDED.—In apply-
24 ing subparagraphs (A) and (B) of paragraph
25 (1), the Secretary shall not consider or count—
† HR 5376 EAS
57
1 ‘‘(i) drugs that are already selected
2 drugs; and
3 ‘‘(ii) for initial price applicability
4 years 2026, 2027, and 2028, qualifying sin-
5 gle source drugs described in paragraph
6 (2)(A).
7 ‘‘(B) USE OF DATA.—In determining
8 whether a qualifying single source drug satisfies
9 any of the criteria described in paragraph (1) or
10 (2), the Secretary shall use data that is aggre-
11 gated across dosage forms and strengths of the
12 drug, including new formulations of the drug,
13 such as an extended release formulation, and not
14 based on the specific formulation or package size
15 or package type of the drug.
16 ‘‘(e) QUALIFYING SINGLE SOURCE DRUG.—
17 ‘‘(1) IN GENERAL.—For purposes of this part,
18 the term ‘qualifying single source drug’ means, with
19 respect to an initial price applicability year, subject
20 to paragraphs (2) and (3), a covered part D drug (as
21 defined in section 1860D–2(e)) that is described in
22 any of the following or a drug or biological product
23 for which payment may be made under part B of title
24 XVIII that is described in any of the following:
25 ‘‘(A) DRUG PRODUCTS.—A drug—
† HR 5376 EAS
58
1 ‘‘(i) that is approved under section
2 505(c) of the Federal Food, Drug, and Cos-
3 metic Act and is marketed pursuant to such
4 approval;
5 ‘‘(ii) for which, as of the selected drug
6 publication date with respect to such initial
7 price applicability year, at least 7 years
8 will have elapsed since the date of such ap-
9 proval; and
10 ‘‘(iii) that is not the listed drug for
11 any drug that is approved and marketed
12 under section 505(j) of such Act.
13 ‘‘(B) BIOLOGICAL PRODUCTS.—A biological
14 product—
15 ‘‘(i) that is licensed under section
16 351(a) of the Public Health Service Act and
17 is marketed under section 351 of such Act;
18 ‘‘(ii) for which, as of the selected drug
19 publication date with respect to such initial
20 price applicability year, at least 11 years
21 will have elapsed since the date of such li-
22 censure; and
23 ‘‘(iii) that is not the reference product
24 for any biological product that is licensed
† HR 5376 EAS
59
1 and marketed under section 351(k) of such
2 Act.
3 ‘‘(2) TREATMENT OF AUTHORIZED GENERIC
4 DRUGS.—
5 ‘‘(A) IN GENERAL.—In the case of a quali-
6 fying single source drug described in subpara-
7 graph (A) or (B) of paragraph (1) that is the
8 listed drug (as such term is used in section
9 505(j) of the Federal Food, Drug, and Cosmetic
10 Act) or a product described in clause (ii) of sub-
11 paragraph (B), with respect to an authorized ge-
12 neric drug, in applying the provisions of this
13 part, such authorized generic drug and such list-
14 ed drug or such product shall be treated as the
15 same qualifying single source drug.
16 ‘‘(B) AUTHORIZED GENERIC DRUG DE-
17 FINED.—For purposes of this paragraph, the
18 term ‘authorized generic drug’ means—
19 ‘‘(i) in the case of a drug, an author-
20 ized generic drug (as such term is defined
21 in section 505(t)(3) of the Federal Food,
22 Drug, and Cosmetic Act); and
23 ‘‘(ii) in the case of a biological prod-
24 uct, a product that—
† HR 5376 EAS
60
1 ‘‘(I) has been licensed under sec-
2 tion 351(a) of such Act; and
3 ‘‘(II) is marketed, sold, or distrib-
4 uted directly or indirectly to retail
5 class of trade under a different label-
6 ing, packaging (other than repackaging
7 as the reference product in blister
8 packs, unit doses, or similar packaging
9 for use in institutions), product code,
10 labeler code, trade name, or trade mark
11 than the reference product.
12 ‘‘(3) EXCLUSIONS.—In this part, the term ‘quali-
13 fying single source drug’ does not include any of the
14 following:
15 ‘‘(A) CERTAIN ORPHAN DRUGS.—A drug
16 that is designated as a drug for only one rare
17 disease or condition under section 526 of the
18 Federal Food, Drug, and Cosmetic Act and for
19 which the only approved indication (or indica-
20 tions) is for such disease or condition.
21 ‘‘(B) LOW SPEND MEDICARE DRUGS.—A
22 drug or biological product with respect to which
23 the total expenditures under parts B and D of
24 title XVIII, as determined by the Secretary in
25 accordance with subsection (d)(3)(B)—
† HR 5376 EAS
61
1 ‘‘(i) with respect to initial price appli-
2 cability year 2026, is less than, during the
3 period beginning on June 1, 2022, and end-
4 ing on May 31, 2023, $200,000,000;
5 ‘‘(ii) with respect to initial price ap-
6 plicability year 2027, is less than, during
7 the most recent 12-month period applicable
8 under subparagraphs (A) and (B) of sub-
9 section (d)(1) for such year, the dollar
10 amount specified in clause (i) increased by
11 the annual percentage increase in the con-
12 sumer price index for all urban consumers
13 (all items; United States city average) for
14 the period beginning on June 1, 2023, and
15 ending on September 30, 2024; or
16 ‘‘(iii) with respect to a subsequent ini-
17 tial price applicability year, is less than,
18 during the most recent 12-month period ap-
19 plicable under subparagraphs (A) and (B)
20 of subsection (d)(1) for such year, the dollar
21 amount specified in this subparagraph for
22 the previous initial price applicability year
23 increased by the annual percentage increase
24 in such consumer price index for the 12-
25 month period ending on September 30 of the
† HR 5376 EAS
62
1 year prior to the year of the selected drug
2 publication date with respect to such subse-
3 quent initial price applicability year.
4 ‘‘(C) PLASMA-DERIVED PRODUCTS.—A bio-
5 logical product that is derived from human
6 whole blood or plasma.
7 ‘‘SEC. 1193. MANUFACTURER AGREEMENTS.
8 ‘‘(a) IN GENERAL.—For purposes of section
9 1191(a)(2), the Secretary shall enter into agreements with
10 manufacturers of selected drugs with respect to a price ap-
11 plicability period, by not later than February 28 following
12 the selected drug publication date with respect to such se-
13 lected drug, under which—
14 ‘‘(1) during the negotiation period for the initial
15 price applicability year for the selected drug, the Sec-
16 retary and the manufacturer, in accordance with sec-
17 tion 1194, negotiate to determine (and, by not later
18 than the last date of such period, agree to) a max-
19 imum fair price for such selected drug of the manu-
20 facturer in order for the manufacturer to provide ac-
21 cess to such price—
22 ‘‘(A) to maximum fair price eligible indi-
23 viduals who with respect to such drug are de-
24 scribed in subparagraph (A) of section
25 1191(c)(2) and are dispensed such drug (and to
† HR 5376 EAS
63
1 pharmacies, mail order services, and other dis-
2 pensers, with respect to such maximum fair
3 price eligible individuals who are dispensed such
4 drugs) during, subject to paragraph (2), the
5 price applicability period; and
6 ‘‘(B) to hospitals, physicians, and other
7 providers of services and suppliers with respect
8 to maximum fair price eligible individuals who
9 with respect to such drug are described in sub-
10 paragraph (B) of such section and are furnished
11 or administered such drug during, subject to
12 paragraph (2), the price applicability period;
13 ‘‘(2) the Secretary and the manufacturer shall,
14 in accordance with section 1194, renegotiate (and, by
15 not later than the last date of the period of renegoti-
16 ation, agree to) the maximum fair price for such
17 drug, in order for the manufacturer to provide access
18 to such maximum fair price (as so renegotiated)—
19 ‘‘(A) to maximum fair price eligible indi-
20 viduals who with respect to such drug are de-
21 scribed in subparagraph (A) of section
22 1191(c)(2) and are dispensed such drug (and to
23 pharmacies, mail order services, and other dis-
24 pensers, with respect to such maximum fair
25 price eligible individuals who are dispensed such
† HR 5376 EAS
64
1 drugs) during any year during the price appli-
2 cability period (beginning after such renegoti-
3 ation) with respect to such selected drug; and
4 ‘‘(B) to hospitals, physicians, and other
5 providers of services and suppliers with respect
6 to maximum fair price eligible individuals who
7 with respect to such drug are described in sub-
8 paragraph (B) of such section and are furnished
9 or administered such drug during any year de-
10 scribed in subparagraph (A);
11 ‘‘(3) subject to subsection (d), access to the max-
12 imum fair price (including as renegotiated pursuant
13 to paragraph (2)), with respect to such a selected
14 drug, shall be provided by the manufacturer to—
15 ‘‘(A) maximum fair price eligible individ-
16 uals, who with respect to such drug are described
17 in subparagraph (A) of section 1191(c)(2), at the
18 pharmacy, mail order service, or other dispenser
19 at the point-of-sale of such drug (and shall be
20 provided by the manufacturer to the pharmacy,
21 mail order service, or other dispenser, with re-
22 spect to such maximum fair price eligible indi-
23 viduals who are dispensed such drugs), as de-
24 scribed in paragraph (1)(A) or (2)(A), as appli-
25 cable; and
† HR 5376 EAS
65
1 ‘‘(B) hospitals, physicians, and other pro-
2 viders of services and suppliers with respect to
3 maximum fair price eligible individuals who
4 with respect to such drug are described in sub-
5 paragraph (B) of such section and are furnished
6 or administered such drug, as described in para-
7 graph (1)(B) or (2)(B), as applicable;
8 ‘‘(4) the manufacturer submits to the Secretary,
9 in a form and manner specified by the Secretary, for
10 the negotiation period for the price applicability pe-
11 riod (and, if applicable, before any period of renegoti-
12 ation pursuant to section 1194(f)) with respect to
13 such drug—
14 ‘‘(A) information on the non-Federal aver-
15 age manufacturer price (as defined in section
16 8126(h)(5) of title 38, United States Code) for
17 the drug for the applicable year or period; and
18 ‘‘(B) information that the Secretary re-
19 quires to carry out the negotiation (or renegoti-
20 ation process) under this part; and
21 ‘‘(5) the manufacturer complies with require-
22 ments determined by the Secretary to be necessary for
23 purposes of administering the program and moni-
24 toring compliance with the program.
† HR 5376 EAS
66
1 ‘‘(b) AGREEMENT IN EFFECT UNTIL DRUG IS NO
2 LONGER A SELECTED DRUG.—An agreement entered into
3 under this section shall be effective, with respect to a selected
4 drug, until such drug is no longer considered a selected drug
5 under section 1192(c).
6 ‘‘(c) CONFIDENTIALITY OF INFORMATION.—Informa-
7 tion submitted to the Secretary under this part by a manu-
8 facturer of a selected drug that is proprietary information
9 of such manufacturer (as determined by the Secretary) shall
10 be used only by the Secretary or disclosed to and used by
11 the Comptroller General of the United States for purposes
12 of carrying out this part.
13 ‘‘(d) NONDUPLICATION WITH 340B CEILING PRICE.—
14 Under an agreement entered into under this section, the
15 manufacturer of a selected drug—
16 ‘‘(1) shall not be required to provide access to the
17 maximum fair price under subsection (a)(3), with re-
18 spect to such selected drug and maximum fair price
19 eligible individuals who are eligible to be furnished,
20 administered, or dispensed such selected drug at a
21 covered entity described in section 340B(a)(4) of the
22 Public Health Service Act, to such covered entity if
23 such selected drug is subject to an agreement described
24 in section 340B(a)(1) of such Act and the ceiling
25 price (defined in section 340B(a)(1) of such Act) is
† HR 5376 EAS
67
1 lower than the maximum fair price for such selected
2 drug; and
3 ‘‘(2) shall be required to provide access to the
4 maximum fair price to such covered entity with re-
5 spect to maximum fair price eligible individuals who
6 are eligible to be furnished, administered, or dis-
7 pensed such selected drug at such entity at such ceil-
8 ing price in a nonduplicated amount to the ceiling
9 price if such maximum fair price is below the ceiling
10 price for such selected drug.
11 ‘‘SEC. 1194. NEGOTIATION AND RENEGOTIATION PROCESS.
12 ‘‘(a) IN GENERAL.—For purposes of this part, under
13 an agreement under section 1193 between the Secretary and
14 a manufacturer of a selected drug (or selected drugs), with
15 respect to the period for which such agreement is in effect
16 and in accordance with subsections (b), (c), and (d), the
17 Secretary and the manufacturer—
18 ‘‘(1) shall during the negotiation period with re-
19 spect to such drug, in accordance with this section,
20 negotiate a maximum fair price for such drug for the
21 purpose described in section 1193(a)(1); and
22 ‘‘(2) renegotiate, in accordance with the process
23 specified pursuant to subsection (f), such maximum
24 fair price for such drug for the purpose described in
† HR 5376 EAS
68
1 section 1193(a)(2) if such drug is a renegotiation-eli-
2 gible drug under such subsection.
3 ‘‘(b) NEGOTIATION PROCESS REQUIREMENTS.—
4 ‘‘(1) METHODOLOGY AND PROCESS.—The Sec-
5 retary shall develop and use a consistent methodology
6 and process, in accordance with paragraph (2), for
7 negotiations under subsection (a) that aims to achieve
8 the lowest maximum fair price for each selected drug.
9 ‘‘(2) SPECIFIC ELEMENTS OF NEGOTIATION
10 PROCESS.—As part of the negotiation process under
11 this section, with respect to a selected drug and the
12 negotiation period with respect to the initial price
13 applicability year with respect to such drug, the fol-
14 lowing shall apply:
15 ‘‘(A) SUBMISSION OF INFORMATION.—Not
16 later than March 1 of the year of the selected
17 drug publication date, with respect to the selected
18 drug, the manufacturer of the drug shall submit
19 to the Secretary, in accordance with section
20 1193(a)(4), the information described in such
21 section.
22 ‘‘(B) INITIAL OFFER BY SECRETARY.—Not
23 later than the June 1 following the selected drug
24 publication date, the Secretary shall provide the
25 manufacturer of the selected drug with a written
† HR 5376 EAS
69
1 initial offer that contains the Secretary’s pro-
2 posal for the maximum fair price of the drug
3 and a concise justification based on the factors
4 described in section 1194(e) that were used in de-
5 veloping such offer.
6 ‘‘(C) RESPONSE TO INITIAL OFFER.—
7 ‘‘(i) IN GENERAL.—Not later than 30
8 days after the date of receipt of an initial
9 offer under subparagraph (B), the manufac-
10 turer shall either accept such offer or pro-
11 pose a counteroffer to such offer.
12 ‘‘(ii) COUNTEROFFER REQUIRE-
13 MENTS.—If a manufacturer proposes a
14 counteroffer, such counteroffer—
15 ‘‘(I) shall be in writing; and
16 ‘‘(II) shall be justified based on
17 the factors described in subsection (e).
18 ‘‘(D) RESPONSE TO COUNTEROFFER.—After
19 receiving a counteroffer under subparagraph (C),
20 the Secretary shall respond in writing to such
21 counteroffer.
22 ‘‘(E) DEADLINE.—All negotiations between
23 the Secretary and the manufacturer of the se-
24 lected drug shall end prior to the first day of No-
25 vember following the selected drug publication
† HR 5376 EAS
70
1 date, with respect to the initial price applica-
2 bility year.
3 ‘‘(F) LIMITATIONS ON OFFER AMOUNT.—In
4 negotiating the maximum fair price of a selected
5 drug, with respect to the initial price applica-
6 bility year for the selected drug, and, as applica-
7 ble, in renegotiating the maximum fair price for
8 such drug, with respect to a subsequent year dur-
9 ing the price applicability period for such drug,
10 the Secretary shall not offer (or agree to a
11 counteroffer for) a maximum fair price for the
12 selected drug that—
13 ‘‘(i) exceeds the ceiling determined
14 under subsection (c) for the selected drug
15 and year; or
16 ‘‘(ii) as applicable, is less than the
17 floor determined under subsection (d) for the
18 selected drug and year.
19 ‘‘(c) CEILING FOR MAXIMUM FAIR PRICE.—
20 ‘‘(1) GENERAL CEILING.—
21 ‘‘(A) IN GENERAL.—The maximum fair
22 price negotiated under this section for a selected
23 drug, with respect to the first initial price appli-
24 cability year of the price applicability period
25 with respect to such drug, shall not exceed the
† HR 5376 EAS
71
1 lower of the amount under subparagraph (B) or
2 the amount under subparagraph (C).
3 ‘‘(B) SUBPARAGRAPH (B) AMOUNT.—An
4 amount equal to the following:
5 ‘‘(i) COVERED PART D DRUG.—In the
6 case of a covered part D drug (as defined in
7 section 1860D–2(e)), the sum of the plan
8 specific enrollment weighted amounts for
9 each prescription drug plan or MA–PD
10 plan (as determined under paragraph (2)).
11 ‘‘(ii) PART B DRUG OR BIOLOGICAL.—
12 In the case of a drug or biological product
13 for which payment may be made under
14 part B of title XVIII, the payment amount
15 under section 1847A(b)(4) for the drug or
16 biological product for the year prior to the
17 year of the selected drug publication date
18 with respect to the initial price applica-
19 bility year for the drug or biological prod-
20 uct.
21 ‘‘(C) SUBPARAGRAPH (C) AMOUNT.—An
22 amount equal to the applicable percent described
23 in paragraph (3), with respect to such drug, of
24 the following:
† HR 5376 EAS
72
1 ‘‘(i) INITIAL PRICE APPLICABILITY
2 YEAR 2026.—In the case of a selected drug
3 with respect to which such initial price ap-
4 plicability year is 2026, the average non-
5 Federal average manufacturer price for such
6 drug for 2021 (or, in the case that there is
7 not an average non-Federal average manu-
8 facturer price available for such drug for
9 2021, for the first full year following the
10 market entry for such drug), increased by
11 the percentage increase in the consumer
12 price index for all urban consumers (all
13 items; United States city average) from
14 September 2021 (or December of such first
15 full year following the market entry), as ap-
16 plicable, to September of the year prior to
17 the year of the selected drug publication
18 date with respect to such initial price ap-
19 plicability year.
20 ‘‘(ii) INITIAL PRICE APPLICABILITY
21 YEAR 2027 AND SUBSEQUENT YEARS.—In
22 the case of a selected drug with respect to
23 which such initial price applicability year
24 is 2027 or a subsequent year, the lower of—
† HR 5376 EAS
73
1 ‘‘(I) the average non-Federal aver-
2 age manufacturer price for such drug
3 for 2021 (or, in the case that there is
4 not an average non-Federal average
5 manufacturer price available for such
6 drug for 2021, for the first full year
7 following the market entry for such
8 drug), increased by the percentage in-
9 crease in the consumer price index for
10 all urban consumers (all items; United
11 States city average) from September
12 2021 (or December of such first full
13 year following the market entry), as
14 applicable, to September of the year
15 prior to the year of the selected drug
16 publication date with respect to such
17 initial price applicability year; or
18 ‘‘(II) the average non-Federal av-
19 erage manufacturer price for such drug
20 for the year prior to the selected drug
21 publication date with respect to such
22 initial price applicability year.
23 ‘‘(2) PLAN SPECIFIC ENROLLMENT WEIGHTED
24 AMOUNT.—For purposes of paragraph (1)(B)(i), the
25 plan specific enrollment weighted amount for a pre-
† HR 5376 EAS
74
1 scription drug plan or an MA–PD plan with respect
2 to a covered Part D drug is an amount equal to the
3 product of—
4 ‘‘(A) the negotiated price of the drug under
5 such plan under part D of title XVIII, net of all
6 price concessions received by such plan or phar-
7 macy benefit managers on behalf of such plan,
8 for the most recent year for which data is avail-
9 able; and
10 ‘‘(B) a fraction—
11 ‘‘(i) the numerator of which is the total
12 number of individuals enrolled in such plan
13 in such year; and
14 ‘‘(ii) the denominator of which is the
15 total number of individuals enrolled in a
16 prescription drug plan or an MA–PD plan
17 in such year.
18 ‘‘(3) APPLICABLE PERCENT DESCRIBED.—For
19 purposes of this subsection, the applicable percent de-
20 scribed in this paragraph is the following:
21 ‘‘(A) SHORT-MONOPOLY DRUGS AND VAC-
22 CINES.—With respect to a selected drug (other
23 than an extended-monopoly drug and a long-mo-
24 nopoly drug), 75 percent.
† HR 5376 EAS
75
1 ‘‘(B) EXTENDED-MONOPOLY DRUGS.—With
2 respect to an extended-monopoly drug, 65 per-
3 cent.
4 ‘‘(C) LONG-MONOPOLY DRUGS.—With re-
5 spect to a long-monopoly drug, 40 percent.
6 ‘‘(4) EXTENDED-MONOPOLY DRUG DEFINED.—
7 ‘‘(A) IN GENERAL.—In this part, subject to
8 subparagraph (B), the term ‘extended-monopoly
9 drug’ means, with respect to an initial price ap-
10 plicability year, a selected drug for which at
11 least 12 years, but fewer than 16 years, have
12 elapsed since the date of approval of such drug
13 under section 505(c) of the Federal Food, Drug,
14 and Cosmetic Act or since the date of licensure
15 of such drug under section 351(a) of the Public
16 Health Service Act, as applicable.
17 ‘‘(B) EXCLUSIONS.—The term ‘extended-mo-
18 nopoly drug’ shall not include any of the fol-
19 lowing:
20 ‘‘(i) A vaccine that is licensed under
21 section 351 of the Public Health Service Act
22 and marketed pursuant to such section.
23 ‘‘(ii) A selected drug for which a man-
24 ufacturer had an agreement under this part
† HR 5376 EAS
76
1 with the Secretary with respect to an initial
2 price applicability year that is before 2030.
3 ‘‘(C) CLARIFICATION.—Nothing in subpara-
4 graph (B)(ii) shall limit the transition of a se-
5 lected drug described in paragraph (3)(A) to a
6 long-monopoly drug if the selected drug meets the
7 definition of a long-monopoly drug.
8 ‘‘(5) LONG-MONOPOLY DRUG DEFINED.—
9 ‘‘(A) IN GENERAL.—In this part, subject to
10 subparagraph (B), the term ‘long-monopoly
11 drug’ means, with respect to an initial price ap-
12 plicability year, a selected drug for which at
13 least 16 years have elapsed since the date of ap-
14 proval of such drug under section 505(c) of the
15 Federal Food, Drug, and Cosmetic Act or since
16 the date of licensure of such drug under section
17 351(a) of the Public Health Service Act, as ap-
18 plicable.
19 ‘‘(B) EXCLUSION.—The term ‘long-monop-
20 oly drug’ shall not include a vaccine that is li-
21 censed under section 351 of the Public Health
22 Service Act and marketed pursuant to such sec-
23 tion.
24 ‘‘(6) AVERAGE NON-FEDERAL AVERAGE MANU-
25 FACTURER PRICE.—In this part, the term ‘average
† HR 5376 EAS
77
1 non-Federal average manufacturer price’ means the
2 average of the non-Federal average manufacturer
3 price (as defined in section 8126(h)(5) of title 38,
4 United States Code) for the 4 calendar quarters of the
5 year involved.
6 ‘‘(d) TEMPORARY FLOOR FOR SMALL BIOTECH
7 DRUGS.—In the case of a selected drug that is a qualifying
8 single source drug described in section 1192(d)(2) and with
9 respect to which the first initial price applicability year
10 of the price applicability period with respect to such drug
11 is 2029 or 2030, the maximum fair price negotiated under
12 this section for such drug for such initial price applicability
13 year may not be less than 66 percent of the average non-
14 Federal average manufacturer price for such drug (as de-
15 fined in subsection (c)(6)) for 2021 (or, in the case that
16 there is not an average non-Federal average manufacturer
17 price available for such drug for 2021, for the first full year
18 following the market entry for such drug), increased by the
19 percentage increase in the consumer price index for all
20 urban consumers (all items; United States city average)
21 from September 2021 (or December of such first full year
22 following the market entry), as applicable, to September of
23 the year prior to the selected drug publication date with
24 respect to the initial price applicability year.
† HR 5376 EAS
78
1 ‘‘(e) FACTORS.—For purposes of negotiating the max-
2 imum fair price of a selected drug under this part with
3 the manufacturer of the drug, the Secretary shall consider
4 the following factors, as applicable to the drug, as the basis
5 for determining the offers and counteroffers under sub-
6 section (b) for the drug:
7 ‘‘(1) MANUFACTURER-SPECIFIC DATA.—The fol-
8 lowing data, with respect to such selected drug, as
9 submitted by the manufacturer:
10 ‘‘(A) Research and development costs of the
11 manufacturer for the drug and the extent to
12 which the manufacturer has recouped research
13 and development costs.
14 ‘‘(B) Current unit costs of production and
15 distribution of the drug.
16 ‘‘(C) Prior Federal financial support for
17 novel therapeutic discovery and development
18 with respect to the drug.
19 ‘‘(D) Data on pending and approved patent
20 applications, exclusivities recognized by the Food
21 and Drug Administration, and applications and
22 approvals under section 505(c) of the Federal
23 Food, Drug, and Cosmetic Act or section 351(a)
24 of the Public Health Service Act for the drug.
† HR 5376 EAS
79
1 ‘‘(E) Market data and revenue and sales
2 volume data for the drug in the United States.
3 ‘‘(2) EVIDENCE ABOUT ALTERNATIVE TREAT-
4 MENTS.—The following evidence, as available, with
5 respect to such selected drug and therapeutic alter-
6 natives to such drug:
7 ‘‘(A) The extent to which such drug rep-
8 resents a therapeutic advance as compared to ex-
9 isting therapeutic alternatives and the costs of
10 such existing therapeutic alternatives.
11 ‘‘(B) Prescribing information approved by
12 the Food and Drug Administration for such drug
13 and therapeutic alternatives to such drug.
14 ‘‘(C) Comparative effectiveness of such drug
15 and therapeutic alternatives to such drug, taking
16 into consideration the effects of such drug and
17 therapeutic alternatives to such drug on specific
18 populations, such as individuals with disabil-
19 ities, the elderly, the terminally ill, children, and
20 other patient populations.
21 ‘‘(D) The extent to which such drug and
22 therapeutic alternatives to such drug address
23 unmet medical needs for a condition for which
24 treatment or diagnosis is not addressed ade-
25 quately by available therapy.
† HR 5376 EAS
80
1 In using evidence described in subparagraph (C), the
2 Secretary shall not use evidence from comparative
3 clinical effectiveness research in a manner that treats
4 extending the life of an elderly, disabled, or termi-
5 nally ill individual as of lower value than extending
6 the life of an individual who is younger, nondisabled,
7 or not terminally ill.
8 ‘‘(f) RENEGOTIATION PROCESS.—
9 ‘‘(1) IN GENERAL.—In the case of a renegoti-
10 ation-eligible drug (as defined in paragraph (2)) that
11 is selected under paragraph (3), the Secretary shall
12 provide for a process of renegotiation (for years (be-
13 ginning with 2028) during the price applicability pe-
14 riod, with respect to such drug) of the maximum fair
15 price for such drug consistent with paragraph (4).
16 ‘‘(2) RENEGOTIATION-ELIGIBLE DRUG DE-
17 FINED.—In this section, the term ‘renegotiation-eligi-
18 ble drug’ means a selected drug that is any of the fol-
19 lowing:
20 ‘‘(A) ADDITION OF NEW INDICATION.—A se-
21 lected drug for which a new indication is added
22 to the drug.
23 ‘‘(B) CHANGE OF STATUS TO AN EXTENDED-
24 MONOPOLY DRUG.—A selected drug that—
† HR 5376 EAS
81
1 ‘‘(i) is not an extended-monopoly or a
2 long-monopoly drug; and
3 ‘‘(ii) for which there is a change in
4 status to that of an extended-monopoly
5 drug.
6 ‘‘(C) CHANGE OF STATUS TO A LONG-MO-
7 NOPOLY DRUG.—A selected drug that—
8 ‘‘(i) is not a long-monopoly drug; and
9 ‘‘(ii) for which there is a change in
10 status to that of a long-monopoly drug.
11 ‘‘(D) MATERIAL CHANGES.—A selected drug
12 for which the Secretary determines there has been
13 a material change of any of the factors described
14 in paragraph (1) or (2) of subsection (e).
15 ‘‘(3) SELECTION OF DRUGS FOR RENEGOTI-
16 ATION.—For each year (beginning with 2028), the
17 Secretary shall select among renegotiation-eligible
18 drugs for renegotiation as follows:
19 ‘‘(A) ALL EXTENDED-MONOPOLY NEGOTIA-
20 TION-ELIGIBLE DRUGS.—The Secretary shall se-
21 lect all renegotiation-eligible drugs described in
22 paragraph (2)(B).
23 ‘‘(B) ALL LONG-MONOPOLY NEGOTIATION-
24 ELIGIBLE DRUGS.—The Secretary shall select all
† HR 5376 EAS
82
1 renegotiation-eligible drugs described in para-
2 graph (2)(C).
3 ‘‘(C) REMAINING DRUGS.—Among the re-
4 maining renegotiation-eligible drugs described in
5 subparagraphs (A) and (D) of paragraph (2),
6 the Secretary shall select renegotiation-eligible
7 drugs for which the Secretary expects renegoti-
8 ation is likely to result in a significant change
9 in the maximum fair price otherwise negotiated.
10 ‘‘(4) RENEGOTIATION PROCESS.—
11 ‘‘(A) IN GENERAL.—The Secretary shall
12 specify the process for renegotiation of maximum
13 fair prices with the manufacturer of a renegoti-
14 ation-eligible drug selected for renegotiation
15 under this subsection.
16 ‘‘(B) CONSISTENT WITH NEGOTIATION
17 PROCESS.—The process specified under subpara-
18 graph (A) shall, to the extent practicable, be con-
19 sistent with the methodology and process estab-
20 lished under subsection (b) and in accordance
21 with subsections (c), (d), and (e), and for pur-
22 poses of applying subsections (c)(1)(A) and (d),
23 the reference to the first initial price applica-
24 bility year of the price applicability period with
25 respect to such drug shall be treated as the first
† HR 5376 EAS
83
1 initial price applicability year of such period for
2 which the maximum fair price established pursu-
3 ant to such renegotiation applies, including for
4 applying subsection (c)(3)(B) in the case of re-
5 negotiation-eligible drugs described in paragraph
6 (3)(A) of this subsection and subsection (c)(3)(C)
7 in the case of renegotiation-eligible drugs de-
8 scribed in paragraph (3)(B) of this subsection.
9 ‘‘(5) CLARIFICATION.—A renegotiation-eligible
10 drug for which the Secretary makes a determination
11 described in section 1192(c)(1) before or during the
12 period of renegotiation shall not be subject to the re-
13 negotiation process under this section.
14 ‘‘(g) CLARIFICATION.—The maximum fair price for a
15 selected drug described in subparagraph (A) or (B) of para-
16 graph (1) shall take effect no later than the first day of
17 the first calendar quarter that begins after the date de-
18 scribed in subparagraph (A) or (B), as applicable.
19 ‘‘SEC. 1195. PUBLICATION OF MAXIMUM FAIR PRICES.
20 ‘‘(a) IN GENERAL.—With respect to an initial price
21 applicability year and a selected drug with respect to such
22 year—
23 ‘‘(1) not later than November 30 of the year that
24 is 2 years prior to such initial price applicability
25 year, the Secretary shall publish the maximum fair
† HR 5376 EAS
84
1 price for such drug negotiated with the manufacturer
2 of such drug under this part; and
3 ‘‘(2) not later than March 1 of the year prior to
4 such initial price applicability year, the Secretary
5 shall publish, subject to section 1193(c), the expla-
6 nation for the maximum fair price with respect to the
7 factors as applied under section 1194(e) for such drug
8 described in paragraph (1).
9 ‘‘(b) UPDATES.—
10 ‘‘(1) SUBSEQUENT YEAR MAXIMUM FAIR
11 PRICES.—For a selected drug, for each year subse-
12 quent to the first initial price applicability year of
13 the price applicability period with respect to such
14 drug, with respect to which an agreement for such
15 drug is in effect under section 1193, not later than
16 November 30 of the year that is 2 years prior to such
17 subsequent year, the Secretary shall publish the max-
18 imum fair price applicable to such drug and year,
19 which shall be—
20 ‘‘(A) subject to subparagraph (B), the
21 amount equal to the maximum fair price pub-
22 lished for such drug for the previous year, in-
23 creased by the annual percentage increase in the
24 consumer price index for all urban consumers
25 (all items; United States city average) for the
† HR 5376 EAS
85
1 12-month period ending with the July imme-
2 diately preceding such November 30; or
3 ‘‘(B) in the case the maximum fair price for
4 such drug was renegotiated, for the first year for
5 which such price as so renegotiated applies, such
6 renegotiated maximum fair price.
7 ‘‘(2) PRICES NEGOTIATED AFTER DEADLINE.—In
8 the case of a selected drug with respect to an initial
9 price applicability year for which the maximum fair
10 price is determined under this part after the date of
11 publication under this section, the Secretary shall
12 publish such maximum fair price by not later than
13 30 days after the date such maximum price is so de-
14 termined.
15 ‘‘SEC. 1196. ADMINISTRATIVE DUTIES AND COMPLIANCE
16 MONITORING.
17 ‘‘(a) ADMINISTRATIVE DUTIES.—For purposes of sec-
18 tion 1191(a)(4), the administrative duties described in this
19 section are the following:
20 ‘‘(1) The establishment of procedures to ensure
21 that the maximum fair price for a selected drug is
22 applied before—
23 ‘‘(A) any coverage or financial assistance
24 under other health benefit plans or programs
25 that provide coverage or financial assistance for
† HR 5376 EAS
86
1 the purchase or provision of prescription drug
2 coverage on behalf of maximum fair price eligi-
3 ble individuals; and
4 ‘‘(B) any other discounts.
5 ‘‘(2) The establishment of procedures to compute
6 and apply the maximum fair price across different
7 strengths and dosage forms of a selected drug and not
8 based on the specific formulation or package size or
9 package type of such drug.
10 ‘‘(3) The establishment of procedures to carry out
11 the provisions of this part, as applicable, with respect
12 to—
13 ‘‘(A) maximum fair price eligible individ-
14 uals who are enrolled in a prescription drug
15 plan under part D of title XVIII or an MA–PD
16 plan under part C of such title; and
17 ‘‘(B) maximum fair price eligible individ-
18 uals who are enrolled under part B of such title,
19 including who are enrolled in an MA plan under
20 part C of such title.
21 ‘‘(4) The establishment of a negotiation process
22 and renegotiation process in accordance with section
23 1194.
† HR 5376 EAS
87
1 ‘‘(5) The establishment of a process for manufac-
2 turers to submit information described in section
3 1194(b)(2)(A).
4 ‘‘(6) The sharing with the Secretary of the Treas-
5 ury of such information as is necessary to determine
6 the tax imposed by section 5000D of the Internal Rev-
7 enue Code of 1986, including the application of such
8 tax to a manufacturer, producer, or importer or the
9 determination of any date described in section
10 5000D(c)(1) of such Code. For purposes of the pre-
11 ceding sentence, such information shall include—
12 ‘‘(A) the date on which the Secretary re-
13 ceives notification of any termination of an
14 agreement under the Medicare coverage gap dis-
15 count program under section 1860D-14A and the
16 date on which any subsequent agreement under
17 such program is entered into;
18 ‘‘(B) the date on which the Secretary re-
19 ceives notification of any termination of an
20 agreement under the manufacturer discount pro-
21 gram under section 1860D-14C and the date on
22 which any subsequent agreement under such pro-
23 gram is entered into; and
24 ‘‘(C) the date on which the Secretary re-
25 ceives notification of any termination of a rebate
† HR 5376 EAS
88
1 agreement described in section 1927(b) and the
2 date on which any subsequent rebate agreement
3 described in such section is entered into.
4 ‘‘(7) The establishment of procedures for purposes
5 of applying section 1192(d)(2)(B).
6 ‘‘(b) COMPLIANCE MONITORING.—The Secretary shall
7 monitor compliance by a manufacturer with the terms of
8 an agreement under section 1193 and establish a mecha-
9 nism through which violations of such terms shall be re-
10 ported.
11 ‘‘SEC. 1197. CIVIL MONETARY PENALTIES.
12 ‘‘(a) VIOLATIONS RELATING TO OFFERING OF MAX-
13 IMUM FAIR PRICE.—Any manufacturer of a selected drug
14 that has entered into an agreement under section 1193, with
15 respect to a year during the price applicability period with
16 respect to such drug, that does not provide access to a price
17 that is equal to or less than the maximum fair price for
18 such drug for such year—
19 ‘‘(1) to a maximum fair price eligible individual
20 who with respect to such drug is described in sub-
21 paragraph (A) of section 1191(c)(2) and who is dis-
22 pensed such drug during such year (and to phar-
23 macies, mail order services, and other dispensers,
24 with respect to such maximum fair price eligible in-
25 dividuals who are dispensed such drugs); or
† HR 5376 EAS
89
1 ‘‘(2) to a hospital, physician, or other provider
2 of services or supplier with respect to maximum fair
3 price eligible individuals who with respect to such
4 drug is described in subparagraph (B) of such section
5 and is furnished or administered such drug by such
6 hospital, physician, or provider or supplier during
7 such year;
8 shall be subject to a civil monetary penalty equal to ten
9 times the amount equal to the product of the number of
10 units of such drug so furnished, dispensed, or administered
11 during such year and the difference between the price for
12 such drug made available for such year by such manufac-
13 turer with respect to such individual or hospital, physician,
14 provider of services, or supplier and the maximum fair
15 price for such drug for such year.
16 ‘‘(b) VIOLATIONS OF CERTAIN TERMS OF AGREE-
17 MENT.—Any manufacturer of a selected drug that has en-
18 tered into an agreement under section 1193, with respect
19 to a year during the price applicability period with respect
20 to such drug, that is in violation of a requirement imposed
21 pursuant to section 1193(a)(5), including the requirement
22 to submit information pursuant to section 1193(a)(4), shall
23 be subject to a civil monetary penalty equal to $1,000,000
24 for each day of such violation.
† HR 5376 EAS
90
1 ‘‘(c) FALSE INFORMATION.—Any manufacturer that
2 knowingly provides false information pursuant to section
3 1196(a)(7) shall be subject to a civil monetary penalty equal
4 to $100,000,000 for each item of such false information.
5 ‘‘(d) APPLICATION.—The provisions of section 1128A
6 (other than subsections (a) and (b)) shall apply to a civil
7 monetary penalty under this section in the same manner
8 as such provisions apply to a penalty or proceeding under
9 section 1128A(a).
10 ‘‘SEC. 1198. LIMITATION ON ADMINISTRATIVE AND JUDI-
11 CIAL REVIEW.
12 ‘‘There shall be no administrative or judicial review
13 of any of the following:
14 ‘‘(1) The determination of a unit, with respect to
15 a drug or biological product, pursuant to section
16 1191(c)(6).
17 ‘‘(2) The selection of drugs under section 1192(b),
18 the determination of negotiation-eligible drugs under
19 section 1192(d), and the determination of qualifying
20 single source drugs under section 1192(e).
21 ‘‘(3) The determination of a maximum fair price
22 under subsection (b) or (f) of section 1194.
23 ‘‘(4) The determination of renegotiation-eligible
24 drugs under section 1194(f)(2) and the selection of re-
25 negotiation-eligible drugs under section 1194(f)(3).’’.
† HR 5376 EAS
91
1 (b) APPLICATION OF MAXIMUM FAIR PRICES AND CON-
2 FORMING AMENDMENTS.—
3 (1) UNDER MEDICARE.—
4 (A) APPLICATION TO PAYMENTS UNDER
5 PART B.—Section 1847A(b)(1)(B) of the Social
6 Security Act (42 U.S.C. 1395w–3a(b)(1)(B)) is
7 amended by inserting ‘‘or in the case of such a
8 drug or biological product that is a selected drug
9 (as referred to in section 1192(c)), with respect
10 to a price applicability period (as defined in sec-
11 tion 1191(b)(2)), 106 percent of the maximum
12 fair price (as defined in section 1191(c)(3)) ap-
13 plicable for such drug and a year during such
14 period’’ after ‘‘paragraph (4)’’.
15 (B) APPLICATION UNDER MA OF COST-
16 SHARING FOR PART B DRUGS BASED OFF OF NE-
17 GOTIATED PRICE.—Section 1852(a)(1)(B)(iv) of
18 the Social Security Act (42 U.S.C. 1395w–
19 22(a)(1)(B)(iv)) is amended—
20 (i) by redesignating subclause (VII) as
21 subclause (VIII); and
22 (ii) by inserting after subclause (VI)
23 the following subclause:
† HR 5376 EAS
92
1 ‘‘(VII) A drug or biological prod-
2 uct that is a selected drug (as referred
3 to in section 1192(c)).’’.
4 (C) EXCEPTION TO PART D NON-INTER-
5 FERENCE.—Section 1860D–11(i) of the Social
6 Security Act (42 U.S.C. 1395w–111(i)) is
7 amended—
8 (i) in paragraph (1), by striking
9 ‘‘and’’ at the end;
10 (ii) in paragraph (2), by striking ‘‘or
11 institute a price structure for the reimburse-
12 ment of covered part D drugs.’’ and insert-
13 ing ‘‘, except as provided under section
14 1860D–4(b)(3)(l); and’’; and
15 (iii) by adding at the end the following
16 new paragraph:
17 ‘‘(3) may not institute a price structure for the
18 reimbursement of covered part D drugs, except as pro-
19 vided under part E of title XI.’’.
20 (D) APPLICATION AS NEGOTIATED PRICE
21 UNDER PART D.—Section 1860D–2(d)(1) of the
22 Social Security Act (42 U.S.C. 1395w–
23 102(d)(1)) is amended—
† HR 5376 EAS
93
1 (i) in subparagraph (B), by inserting
2 ‘‘, subject to subparagraph (D),’’ after ‘‘ne-
3 gotiated prices’’; and
4 (ii) by adding at the end the following
5 new subparagraph:
6 ‘‘(D) APPLICATION OF MAXIMUM FAIR PRICE
7 FOR SELECTED DRUGS.—In applying this sec-
8 tion, in the case of a covered part D drug that
9 is a selected drug (as referred to in section
10 1192(c)), with respect to a price applicability
11 period (as defined in section 1191(b)(2)), the ne-
12 gotiated prices used for payment (as described in
13 this subsection) shall be no greater than the max-
14 imum fair price (as defined in section
15 1191(c)(3)) for such drug and for each year dur-
16 ing such period plus any dispensing fees for such
17 drug.’’.
18 (E) COVERAGE OF SELECTED DRUGS.—Sec-
19 tion 1860D–4(b)(3) of the Social Security Act
20 (42 U.S.C. 1395w–104(b)(3)) is amended by
21 adding at the end the following new subpara-
22 graph:
23 ‘‘(I) REQUIRED INCLUSION OF SELECTED
24 DRUGS.—
† HR 5376 EAS
94
1 ‘‘(i) IN GENERAL.—For 2026 and each
2 subsequent year, the PDP sponsor offering a
3 prescription drug plan shall include each
4 covered part D drug that is a selected drug
5 under section 1192 for which a maximum
6 fair price (as defined in section 1191(c)(3))
7 is in effect with respect to the year.
8 ‘‘(ii) CLARIFICATION.—Nothing in
9 clause (i) shall be construed as prohibiting
10 a PDP sponsor from removing such a se-
11 lected drug from a formulary if such re-
12 moval would be permitted under section
13 423.120(b)(5)(iv) of title 42, Code of Federal
14 Regulations (or any successor regulation).’’.
15 (F) INFORMATION FROM PRESCRIPTION
16 DRUG PLANS AND MA–PD PLANS REQUIRED.—
17 (i) PRESCRIPTION DRUG PLANS.—Sec-
18 tion 1860D–12(b) of the Social Security Act
19 (42 U.S.C. 1395w–112(b)) is amended by
20 adding at the end the following new para-
21 graph:
22 ‘‘(8) PROVISION OF INFORMATION RELATED TO
23 MAXIMUM FAIR PRICES.—Each contract entered into
24 with a PDP sponsor under this part with respect to
25 a prescription drug plan offered by such sponsor shall
† HR 5376 EAS
95
1 require the sponsor to provide information to the Sec-
2 retary as requested by the Secretary for purposes of
3 carrying out section 1194.’’.
4 (ii) MA–PD PLANS.—Section
5 1857(f)(3) of the Social Security Act (42
6 U.S.C. 1395w–27(f)(3)) is amended by add-
7 ing at the end the following new subpara-
8 graph:
9 ‘‘(E) PROVISION OF INFORMATION RELATED
10 TO MAXIMUM FAIR PRICES.—Section 1860D–
11 12(b)(8).’’.
12 (G) CONDITIONS FOR COVERAGE.—
13 (i) MEDICARE PART D.—Section
14 1860D–43(c) of the Social Security Act (42
15 U.S.C. 1395w–153(c)) is amended—
16 (I) by redesignating paragraphs
17 (1) and (2) as subparagraphs (A) and
18 (B), respectively;
19 (II) by striking ‘‘AGREEMENTS.—
20 Subsection’’ and inserting the fol-
21 lowing: ‘‘AGREEMENTS.—
22 ‘‘(1) IN GENERAL.—Subject to paragraph (2),
23 subsection’’; and
24 (III) by adding at the end the fol-
25 lowing new paragraph:
† HR 5376 EAS
96
1 ‘‘(2) EXCEPTION.—Paragraph (1)(A) shall not
2 apply to a covered part D drug of a manufacturer for
3 any period described in section 5000D(c)(1) of the In-
4 ternal Revenue Code of 1986 with respect to the man-
5 ufacturer.’’.
6 (ii) MEDICAID AND MEDICARE PART
7 B.—Section 1927(a)(3) of the Social Secu-
8 rity Act (42 U.S.C. 1396r–8(a)(3)) is
9 amended by adding at the end the following
10 new sentence: ‘‘The preceding sentence shall
11 not apply to a single source drug or inno-
12 vator multiple source drug of a manufac-
13 turer for any period described in section
14 5000D(c)(1) of the Internal Revenue Code of
15 1986 with respect to the manufacturer.’’.
16 (H) DISCLOSURE OF INFORMATION UNDER
17 MEDICARE PART D.—
18 (i) CONTRACT REQUIREMENTS.—Sec-
19 tion 1860D–12(b)(3)(D)(i) of the Social Se-
20 curity Act (42 U.S.C. 1395w–
21 112(b)(3)(D)(i)) is amended by inserting ‘‘,
22 or carrying out part E of title XI’’ after
23 ‘‘appropriate)’’.
24 (ii) SUBSIDIES.—Section 1860D–
25 15(f)(2)(A)(i) of the Social Security Act (42
† HR 5376 EAS
97
1 U.S.C. 1395w–115(f)(2)(A)(i)) is amended
2 by inserting ‘‘or part E of title XI’’ after
3 ‘‘this section’’.
4 (2) DRUG PRICE NEGOTIATION PROGRAM PRICES
5 INCLUDED IN BEST PRICE.—Section 1927(c)(1)(C) of
6 the Social Security Act (42 U.S.C. 1396r–8(c)(1)(C))
7 is amended—
8 (A) in clause (i)(VI), by striking ‘‘any
9 prices charged’’ and inserting ‘‘subject to clause
10 (ii)(V), any prices charged’’; and
11 (B) in clause (ii)—
12 (i) in subclause (III), by striking ‘‘;
13 and’’ at the end;
14 (ii) in subclause (IV), by striking the
15 period at the end and inserting ‘‘; and’’;
16 and
17 (iii) by adding at the end the following
18 new subclause:
19 ‘‘(V) in the case of a rebate period
20 and a covered outpatient drug that is
21 a selected drug (as referred to in sec-
22 tion 1192(c)) during such rebate pe-
23 riod, shall be inclusive of the max-
24 imum fair price (as defined in section
† HR 5376 EAS
98
1 1191(c)(3)) for such drug with respect
2 to such period.’’.
3 (3) MAXIMUM FAIR PRICES EXCLUDED FROM AV-
4 ERAGE MANUFACTURER PRICE.—Section
5 1927(k)(1)(B)(i) of the Social Security Act (42 U.S.C.
6 1396r–8(k)(1)(B)(i)) is amended—
7 (A) in subclause (IV) by striking ‘‘; and’’ at
8 the end;
9 (B) in subclause (V) by striking the period
10 at the end and inserting ‘‘; and’’; and
11 (C) by adding at the end the following new
12 subclause:
13 ‘‘(VI) any reduction in price paid
14 during the rebate period to the manu-
15 facturer for a drug by reason of appli-
16 cation of part E of title XI.’’.
17 (c) IMPLEMENTATION FOR 2026 THROUGH 2028.—The
18 Secretary of Health and Human Services shall implement
19 this section, including the amendments made by this sec-
20 tion, for 2026, 2027, and 2028 by program instruction or
21 other forms of program guidance.
† HR 5376 EAS
99
1 SEC. 11002. SPECIAL RULE TO DELAY SELECTION AND NE-
2 GOTIATION OF BIOLOGICS FOR BIOSIMILAR
3 MARKET ENTRY.
4 (a) IN GENERAL.—Part E of title XI of the Social Se-
5 curity Act, as added by section 11001, is amended—
6 (1) in section 1192—
7 (A) in subsection (a), in the flush matter
8 following paragraph (4), by inserting ‘‘and sub-
9 section (b)(3)’’ after ‘‘the previous sentence’’;
10 (B) in subsection (b)—
11 (i) in paragraph (1), by adding at the
12 end the following new subparagraph:
13 ‘‘(C) In the case of a biological product for
14 which the inclusion of the biological product as
15 a selected drug on a list published under sub-
16 section (a) has been delayed under subsection
17 (f)(2), remove such biological product from the
18 rankings under subparagraph (A) before making
19 the selections under subparagraph (B).’’; and
20 (ii) by adding at the end the following
21 new paragraph:
22 ‘‘(3) INCLUSION OF DELAYED BIOLOGICAL PROD-
23 UCTS.—Pursuant to subparagraphs (B)(ii)(I) and
24 (C)(i) of subsection (f)(2), the Secretary shall select
25 and include on the list published under subsection (a)
26 the biological products described in such subpara-
† HR 5376 EAS
100
1 graphs. Such biological products shall count towards
2 the required number of drugs to be selected under sub-
3 section (a)(1).’’; and
4 (C) by adding at the end the following new
5 subsection:
6 ‘‘(f) SPECIAL RULE TO DELAY SELECTION AND NEGO-
7 TIATION OF BIOLOGICS FOR BIOSIMILAR MARKET
8 ENTRY.—
9 ‘‘(1) APPLICATION.—
10 ‘‘(A) IN GENERAL.—Subject to subpara-
11 graph (B), in the case of a biological product
12 that would (but for this subsection) be an ex-
13 tended-monopoly drug (as defined in section
14 1194(c)(4)) included as a selected drug on the
15 list published under subsection (a) with respect
16 to an initial price applicability year, the rules
17 described in paragraph (2) shall apply if the
18 Secretary determines that there is a high likeli-
19 hood (as described in paragraph (3)) that a bio-
20 similar biological product (for which such bio-
21 logical product will be the reference product) will
22 be licensed and marketed under section 351(k) of
23 the Public Health Service Act before the date
24 that is 2 years after the selected drug publication
† HR 5376 EAS
101
1 date with respect to such initial price applica-
2 bility year.
3 ‘‘(B) REQUEST REQUIRED.—
4 ‘‘(i) IN GENERAL.—The Secretary shall
5 not provide for a delay under—
6 ‘‘(I) paragraph (2)(A) unless a re-
7 quest is made for such a delay by a
8 manufacturer of a biosimilar biological
9 product prior to the selected drug pub-
10 lication date for the list published
11 under subsection (a) with respect to the
12 initial price applicability year for
13 which the biological product may have
14 been included as a selected drug on
15 such list but for subparagraph (2)(A);
16 or
17 ‘‘(II) paragraph (2)(B)(iii) unless
18 a request is made for such a delay by
19 such a manufacturer prior to the se-
20 lected drug publication date for the list
21 published under subsection (a) with re-
22 spect to the initial price applicability
23 year that is 1 year after the initial
24 price applicability year for which the
25 biological product described in sub-
† HR 5376 EAS
102
1 section (a) would have been included as
2 a selected drug on such list but for
3 paragraph (2)(A).
4 ‘‘(ii) INFORMATION AND DOCU-
5 MENTS.—
6 ‘‘(I) IN GENERAL.—A request
7 made under clause (i) shall be sub-
8 mitted to the Secretary by such manu-
9 facturer at a time and in a form and
10 manner specified by the Secretary, and
11 contain—
12 ‘‘(aa) information and docu-
13 ments necessary for the Secretary
14 to make determinations under this
15 subsection, as specified by the Sec-
16 retary and including, to the ex-
17 tent available, items described in
18 subclause (III); and
19 ‘‘(bb) all agreements related
20 to the biosimilar biological prod-
21 uct filed with the Federal Trade
22 Commission or the Assistant At-
23 torney General pursuant to sub-
24 sections (a) and (c) of section
25 1112 of the Medicare Prescription
† HR 5376 EAS
103
1 Drug, Improvement, and Mod-
2 ernization Act of 2003.
3 ‘‘(II) ADDITIONAL INFORMATION
4 AND DOCUMENTS.—After the Secretary
5 has reviewed the request and materials
6 submitted under subclause (I), the
7 manufacturer shall submit any addi-
8 tional information and documents re-
9 quested by the Secretary necessary to
10 make determinations under this sub-
11 section.
12 ‘‘(III) ITEMS DESCRIBED.—The
13 items described in this clause are the
14 following:
15 ‘‘(aa) The manufacturing
16 schedule for such biosimilar bio-
17 logical product submitted to the
18 Food and Drug Administration
19 during its review of the applica-
20 tion under such section 351(k).
21 ‘‘(bb) Disclosures (in filings
22 by the manufacturer of such bio-
23 similar biological product with
24 the Securities and Exchange Com-
25 mission required under section
† HR 5376 EAS
104
1 12(b), 12(g), 13(a), or 15(d) of the
2 Securities Exchange Act of 1934
3 about capital investment, revenue
4 expectations, and actions taken by
5 the manufacturer that are typical
6 of the normal course of business in
7 the year (or the 2 years, as appli-
8 cable) before marketing of a bio-
9 similar biological product) that
10 pertain to the marketing of such
11 biosimilar biological product, or
12 comparable documentation that is
13 distributed to the shareholders of
14 privately held companies.
15 ‘‘(C) AGGREGATION RULE.—
16 ‘‘(i) IN GENERAL.—All persons treated
17 as a single employer under subsection (a) or
18 (b) of section 52 of the Internal Revenue
19 Code of 1986, or in a partnership, shall be
20 treated as one manufacturer for purposes of
21 paragraph (2)(D)(iv).
22 ‘‘(ii) PARTNERSHIP DEFINED.—In
23 clause (i), the term ‘partnership’ means a
24 syndicate, group, pool, joint venture, or
25 other organization through or by means of
† HR 5376 EAS
105
1 which any business, financial operation, or
2 venture is carried on by the manufacturer
3 of the biological product and the manufac-
4 turer of the biosimilar biological product.
5 ‘‘(2) RULES DESCRIBED.—The rules described in
6 this paragraph are the following:
7 ‘‘(A) DELAYED SELECTION AND NEGOTIA-
8 TION FOR 1 YEAR.—If a determination of high
9 likelihood is made under paragraph (3), the Sec-
10 retary shall delay the inclusion of the biological
11 product as a selected drug on the list published
12 under subsection (a) until such list is published
13 with respect to the initial price applicability
14 year that is 1 year after the initial price appli-
15 cability year for which the biological product
16 would have been included as a selected drug on
17 such list.
18 ‘‘(B) IF NOT LICENSED AND MARKETED
19 DURING THE INITIAL DELAY.—
20 ‘‘(i) IN GENERAL.—If, during the time
21 period between the selected drug publication
22 date on which the biological product would
23 have been included on the list as a selected
24 drug pursuant to subsection (a) but for sub-
25 paragraph (A) and the selected drug publi-
† HR 5376 EAS
106
1 cation date with respect to the initial price
2 applicability year that is 1 year after the
3 initial price applicability year for which
4 such biological product would have been in-
5 cluded as a selected drug on such list, the
6 Secretary determines that the biosimilar bi-
7 ological product for which the manufacturer
8 submitted the request under paragraph
9 (1)(B)(i)(II) (and for which the Secretary
10 previously made a high likelihood deter-
11 mination under paragraph (3)) has not
12 been licensed and marketed under section
13 351(k) of the Public Health Service Act, the
14 Secretary shall, at the request of such man-
15 ufacturer—
16 ‘‘(I) reevaluate whether there is a
17 high likelihood (as described in para-
18 graph (3)) that such biosimilar biologi-
19 cal product will be licensed and mar-
20 keted under such section 351(k) before
21 the date that is 2 years after the se-
22 lected drug publication date for which
23 such biological product would have
24 been included as a selected drug on
† HR 5376 EAS
107
1 such list published but for subpara-
2 graph (A); and
3 ‘‘(II) evaluate whether, on the
4 basis of clear and convincing evidence,
5 the manufacturer of such biosimilar bi-
6 ological product has made a significant
7 amount of progress (as determined by
8 the Secretary) towards both such licen-
9 sure and the marketing of such bio-
10 similar biological product (based on
11 information from items described in
12 subclauses (I)(bb) and (II) of para-
13 graph (1)(B)(ii)) since the receipt by
14 the Secretary of the request made by
15 such manufacturer under paragraph
16 (1)(B)(i)(I).
17 ‘‘(ii) SELECTION AND NEGOTIATION.—
18 If the Secretary determines that there is not
19 a high likelihood that such biosimilar bio-
20 logical product will be licensed and mar-
21 keted as described in clause (i)(I) or there
22 has not been a significant amount of
23 progress as described in clause (i)(II)—
24 ‘‘(I) the Secretary shall include
25 the biological product as a selected
† HR 5376 EAS
108
1 drug on the list published under sub-
2 section (a) with respect to the initial
3 price applicability year that is 1 year
4 after the initial price applicability
5 year for which such biological product
6 would have been included as a selected
7 drug on such list but for subparagraph
8 (A); and
9 ‘‘(II) the manufacturer of such bi-
10 ological product shall pay a rebate
11 under paragraph (4) with respect to
12 the year for which such manufacturer
13 would have provided access to a max-
14 imum fair price for such biological
15 product but for subparagraph (A).
16 ‘‘(iii) SECOND 1-YEAR DELAY.—If the
17 Secretary determines that there is a high
18 likelihood that such biosimilar biological
19 product will be licensed and marketed (as
20 described in clause (i)(I)) and a significant
21 amount of progress has been made by the
22 manufacturer of such biosimilar biological
23 product towards such licensure and mar-
24 keting (as described in clause (i)(II)), the
25 Secretary shall delay the inclusion of the bi-
† HR 5376 EAS
109
1 ological product as a selected drug on the
2 list published under subsection (a) until the
3 selected drug publication date of such list
4 with respect to the initial price applica-
5 bility year that is 2 years after the initial
6 price applicability year for which such bio-
7 logical product would have been included as
8 a selected drug on such list but for this sub-
9 section.
10 ‘‘(C) IF NOT LICENSED AND MARKETED
11 DURING THE YEAR TWO DELAY.—If, during the
12 time period between the selected drug publication
13 date of the list for which the biological product
14 would have been included as a selected drug but
15 for subparagraph (B)(iii) and the selected drug
16 publication date with respect to the initial price
17 applicability year that is 2 years after the ini-
18 tial price applicability year for which such bio-
19 logical product would have been included as a se-
20 lected drug on such list but for this subsection,
21 the Secretary determines that such biosimilar bi-
22 ological product has not been licensed and mar-
23 keted—
24 ‘‘(i) the Secretary shall include such
25 biological product as a selected drug on such
† HR 5376 EAS
110
1 list with respect to the initial price applica-
2 bility year that is 2 years after the initial
3 price applicability year for which such bio-
4 logical product would have been included as
5 a selected drug on such list; and
6 ‘‘(ii) the manufacturer of such biologi-
7 cal product shall pay a rebate under para-
8 graph (4) with respect to the years for
9 which such manufacturer would have pro-
10 vided access to a maximum fair price for
11 such biological product but for this sub-
12 section.
13 ‘‘(D) LIMITATIONS ON DELAYS.—
14 ‘‘(i) LIMITED TO 2 YEARS.—In no case
15 shall the Secretary delay the inclusion of a
16 biological product on the list published
17 under subsection (a) for more than 2 years.
18 ‘‘(ii) EXCLUSION OF BIOLOGICAL
19 PRODUCTS THAT TRANSITIONED TO A LONG-
20 MONOPOLY DRUG DURING THE DELAY.—In
21 the case of a biological product for which
22 the inclusion on the list published pursuant
23 to subsection (a) was delayed by 1 year
24 under subparagraph (A) and for which
25 there would have been a change in status to
† HR 5376 EAS
111
1 a long-monopoly drug (as defined in section
2 1194(c)(5)) if such biological product had
3 been a selected drug, in no case may the
4 Secretary provide for a second 1-year delay
5 under subparagraph (B)(iii).
6 ‘‘(iii) EXCLUSION OF BIOLOGICAL
7 PRODUCTS IF MORE THAN 1 YEAR SINCE LI-
8 CENSURE.—In no case shall the Secretary
9 delay the inclusion of a biological product
10 on the list published under subsection (a) if
11 more than 1 year has elapsed since the bio-
12 similar biological product has been licensed
13 under section 351(k) of the Public Health
14 Service Act and marketing has not com-
15 menced for such biosimilar biological prod-
16 uct.
17 ‘‘(iv) CERTAIN MANUFACTURERS OF
18 BIOSIMILAR BIOLOGICAL PRODUCTS EX-
19 CLUDED.—In no case shall the Secretary
20 delay the inclusion of a biological product
21 as a selected drug on the list published
22 under subsection (a) if Secretary deter-
23 mined that the manufacturer of the bio-
24 similar biological product described in
25 paragraph (1)(A)—
† HR 5376 EAS
112
1 ‘‘(I) is the same as the manufac-
2 turer of the reference product described
3 in such paragraph or is treated as
4 being the same pursuant to paragraph
5 (1)(C); or
6 ‘‘(II) has, based on information
7 from items described in paragraph
8 (1)(B)(ii)(I)(bb), entered into any
9 agreement described in such paragraph
10 with the manufacturer of the reference
11 product described in paragraph (1)(A)
12 that—
13 ‘‘(aa) requires or incentivizes
14 the manufacturer of the biosimilar
15 biological product to submit a re-
16 quest described in paragraph
17 (1)(B); or
18 ‘‘(bb) restricts the quantity
19 (either directly or indirectly) of
20 the biosimilar biological product
21 that may be sold in the United
22 States over a specified period of
23 time.
24 ‘‘(3) HIGH LIKELIHOOD.—For purposes of this
25 subsection, there is a high likelihood described in
† HR 5376 EAS
113
1 paragraph (1) or paragraph (2), as applicable, if the
2 Secretary finds that—
3 ‘‘(A) an application for licensure under sec-
4 tion 351(k) of the Public Health Service Act for
5 the biosimilar biological product has been accept-
6 ed for review or approved by the Food and Drug
7 Administration; and
8 ‘‘(B) information from items described in
9 sub clauses (I)(bb) and (III) of paragraph
10 (1)(B)(ii) submitted to the Secretary by the
11 manufacturer requesting a delay under such
12 paragraph provides clear and convincing evi-
13 dence that such biosimilar biological product
14 will, within the time period specified under
15 paragraph (1)(A) or (2)(B)(i)(I), be marketed.
16 ‘‘(4) REBATE.—
17 ‘‘(A) IN GENERAL.—For purposes of sub-
18 paragraphs (B)(ii)(II) and (C)(ii) of paragraph
19 (2), in the case of a biological product for which
20 the inclusion on the list under subsection (a) was
21 delayed under this subsection and for which the
22 Secretary has negotiated and entered into an
23 agreement under section 1193 with respect to
24 such biological product, the manufacturer shall
25 be required to pay a rebate to the Secretary at
† HR 5376 EAS
114
1 such time and in such manner as determined by
2 the Secretary.
3 ‘‘(B) AMOUNT.—Subject to subparagraph
4 (C), the amount of the rebate under subpara-
5 graph (A) with respect to a biological product
6 shall be equal to the estimated amount—
7 ‘‘(i) in the case of a biological product
8 that is a covered part D drug (as defined in
9 section 1860D–2(e)), that is the sum of the
10 products of—
11 ‘‘(I) 75 percent of the amount by
12 which—
13 ‘‘(aa) the average manufac-
14 turer price, as reported by the
15 manufacturer of such covered part
16 D drug under section 1927 (or, if
17 not reported by such manufac-
18 turer under section 1927, as re-
19 ported by such manufacturer to
20 the Secretary pursuant to the
21 agreement under section 1193(a))
22 for such biological product, with
23 respect to each of the calendar
24 quarters of the price applicability
† HR 5376 EAS
115
1 period that would have applied
2 but for this subsection; exceeds
3 ‘‘(bb) in the initial price ap-
4 plicability year that would have
5 applied but for a delay under—
6 ‘‘(AA) paragraph
7 (2)(A), the maximum fair
8 price negotiated under sec-
9 tion 1194 for such biological
10 product under such agree-
11 ment; or
12 ‘‘(BB) paragraph
13 (2)(B)(iii), such maximum
14 fair price, increased as de-
15 scribed in section
16 1195(b)(1)(A); and
17 ‘‘(II) the number of units dis-
18 pensed under part D of title XVIII for
19 such covered part D drug during each
20 such calendar quarter of such price ap-
21 plicability period; and
22 ‘‘(ii) in the case of a biological product
23 for which payment may be made under
24 part B of title XVIII, that is the sum of the
25 products of—
† HR 5376 EAS
116
1 ‘‘(I) 80 percent of the amount by
2 which—
3 ‘‘(aa) the payment amount
4 for such biological product under
5 section 1847A(b), with respect to
6 each of the calendar quarters of
7 the price applicability period that
8 would have applied but for this
9 subsection; exceeds
10 ‘‘(bb) in the initial price ap-
11 plicability year that would have
12 applied but for a delay under—
13 ‘‘(AA) paragraph
14 (2)(A), the maximum fair
15 price negotiated under sec-
16 tion 1194 for such biological
17 product under such agree-
18 ment; or
19 ‘‘(BB) paragraph
20 (2)(B)(iii), such maximum
21 fair price, increased as de-
22 scribed in section
23 1195(b)(1)(A); and
24 ‘‘(II) the number of units (exclud-
25 ing units that are packaged into the
† HR 5376 EAS
117
1 payment amount for an item or service
2 and are not separately payable under
3 such part B) of the billing and pay-
4 ment code of such biological product
5 administered or furnished under such
6 part B during each such calendar
7 quarter of such price applicability pe-
8 riod.
9 ‘‘(C) SPECIAL RULE FOR DELAYED BIOLOGI-
10 CAL PRODUCTS THAT ARE LONG-MONOPOLY
11 DRUGS.—
12 ‘‘(i) IN GENERAL.—In the case of a bi-
13 ological product with respect to which a re-
14 bate is required to be paid under this para-
15 graph, if such biological product qualifies as
16 a long-monopoly drug (as defined in section
17 1194(c)(5)) at the time of its inclusion on
18 the list published under subsection (a), in
19 determining the amount of the rebate for
20 such biological product under subparagraph
21 (B), the amount described in clause (ii)
22 shall be substituted for the maximum fair
23 price described in clause (i)(I) or (ii)(I) of
24 such subparagraph (B), as applicable.
† HR 5376 EAS
118
1 ‘‘(ii) AMOUNT DESCRIBED.—The
2 amount described in this clause is an
3 amount equal to 65 percent of the average
4 non-Federal average manufacturer price for
5 the biological product for 2021 (or, in the
6 case that there is not an average non-Fed-
7 eral average manufacturer price available
8 for such biological product for 2021, for the
9 first full year following the market entry for
10 such biological product), increased by the
11 percentage increase in the consumer price
12 index for all urban consumers (all items;
13 United States city average) from September
14 2021 (or December of such first full year
15 following the market entry), as applicable,
16 to September of the year prior to the se-
17 lected drug publication date with respect to
18 the initial price applicability year that
19 would have applied but for this subsection.
20 ‘‘(D) REBATE DEPOSITS.—Amounts paid as
21 rebates under this paragraph shall be deposited
22 into—
23 ‘‘(i) in the case payment is made for
24 such biological product under part B of title
25 XVIII, the Federal Supplementary Medical
† HR 5376 EAS
119
1 Insurance Trust Fund established under
2 section 1841; and
3 ‘‘(ii) in the case such biological prod-
4 uct is a covered part D drug (as defined in
5 section 1860D–2(e)), the Medicare Prescrip-
6 tion Drug Account under section 1860D–16
7 in such Trust Fund.
8 ‘‘(5) DEFINITIONS OF BIOSIMILAR BIOLOGICAL
9 PRODUCT.—In this subsection, the term ‘biosimilar
10 biological product’ has the meaning given such term
11 in section 1847A(c)(6).’’;
12 (2) in section 1193(a)(4)—
13 (A) in the matter preceding subparagraph
14 (A), by inserting ‘‘, and for section 1192(f),’’
15 after ‘‘section 1194(f))’’;
16 (B) in subparagraph (A), by striking ‘‘and’’
17 at the end;
18 (C) by adding at the end the following new
19 subparagraph:
20 ‘‘(C) information that the Secretary re-
21 quires to carry out section 1192(f), including re-
22 bates under paragraph (4) of such section; and’’;
23 (3) in section 1196(a)(7), by striking ‘‘section
24 1192(d)(2)(B)’’ and inserting ‘‘subsections (d)(2)(B)
25 and (f)(1)(C) of section 1192’’;
† HR 5376 EAS
120
1 (4) in section 1197—
2 (A) by redesignating subsections (b), (c),
3 and (d) as subsections (c), (d), and (e), respec-
4 tively; and
5 (B) by inserting after subsection (a) the fol-
6 lowing new subsection:
7 ‘‘(b) VIOLATIONS RELATING TO PROVIDING RE-
8 BATES.—Any manufacturer that fails to comply with the
9 rebate requirements under section 1192(f)(4) shall be subject
10 to a civil monetary penalty equal to 10 times the amount
11 of the rebate the manufacturer failed to pay under such sec-
12 tion.’’; and
13 (5) in section 1198(b)(2), by inserting ‘‘the ap-
14 plication of section 1192(f),’’ after ‘‘section 1192(e)’’.
15 (b) CONFORMING AMENDMENTS FOR DISCLOSURE OF
16 CERTAIN INFORMATION.—Section 1927(b)(3)(D)(i) of the
17 Social Security Act (42 U.S.C. 1396r–8(b)(3)(D)(i)) is
18 amended by striking ‘‘or to carry out section 1847B’’ and
19 inserting ‘‘or to carry out section 1847B or section 1192(f),
20 including rebates under paragraph (4) of such section’’.
21 (c) IMPLEMENTATION FOR 2026 THROUGH 2028.—The
22 Secretary of Health and Human Services shall implement
23 this section, including the amendments made by this sec-
24 tion, for 2026, 2027, and 2028 by program instruction or
25 other forms of program guidance.
† HR 5376 EAS
121
1 SEC. 11003. EXCISE TAX IMPOSED ON DRUG MANUFACTUR-
2 ERS DURING NONCOMPLIANCE PERIODS.
3 (a) IN GENERAL.—Subtitle D of the Internal Revenue
4 Code of 1986 is amended by adding at the end the following
5 new chapter:
6 ‘‘CHAPTER 50A—DESIGNATED DRUGS
‘‘Sec. 5000D. Designated drugs during noncompliance periods.
7 ‘‘SEC. 5000D. DESIGNATED DRUGS DURING NONCOMPLI-
8 ANCE PERIODS.
9 ‘‘(a) IN GENERAL.—There is hereby imposed on the
10 sale by the manufacturer, producer, or importer of any des-
11 ignated drug during a day described in subsection (b) a
12 tax in an amount such that the applicable percentage is
13 equal to the ratio of—
14 ‘‘(1) such tax, divided by
15 ‘‘(2) the sum of such tax and the price for which
16 so sold.
17 ‘‘(b) NONCOMPLIANCE PERIODS.—A day is described
18 in this subsection with respect to a designated drug if it
19 is a day during one of the following periods:
20 ‘‘(1) The period beginning on the March 1st (or,
21 in the case of initial price applicability year 2026,
22 the October 2nd) immediately following the date on
23 which such drug is included on the list published
24 under section 1192(a) of the Social Security Act and
25 ending on the earlier of—
† HR 5376 EAS
122
1 ‘‘(A) the first date on which the manufac-
2 turer of such designated drug has in place an
3 agreement described in section 1193(a) of such
4 Act with respect to such drug, or
5 ‘‘(B) the date that the Secretary of Health
6 and Human Services has made a determination
7 described in section 1192(c)(1) of such Act with
8 respect to such designated drug.
9 ‘‘(2) The period beginning on the November 2nd
10 immediately following the March 1st described in
11 paragraph (1) (or, in the case of initial price appli-
12 cability year 2026, the August 2nd immediately fol-
13 lowing the October 2nd described in such paragraph)
14 and ending on the earlier of—
15 ‘‘(A) the first date on which the manufac-
16 turer of such designated drug and the Secretary
17 of Health and Human Services have agreed to a
18 maximum fair price under an agreement de-
19 scribed in section 1193(a) of the Social Security
20 Act, or
21 ‘‘(B) the date that the Secretary of Health
22 and Human Services has made a determination
23 described in section 1192(c)(1) of such Act with
24 respect to such designated drug.
† HR 5376 EAS
123
1 ‘‘(3) In the case of any designated drug which is
2 a selected drug (as defined in section 1192(c) of the
3 Social Security Act) that the Secretary of Health and
4 Human Services has selected for renegotiation under
5 section 1194(f) of such Act, the period beginning on
6 the November 2nd of the year that begins 2 years
7 prior to the first initial price applicability year of
8 the price applicability period for which the maximum
9 fair price established pursuant to such renegotiation
10 applies and ending on the earlier of—
11 ‘‘(A) the first date on which the manufac-
12 turer of such designated drug has agreed to a re-
13 negotiated maximum fair price under such
14 agreement, or
15 ‘‘(B) the date that the Secretary of Health
16 and Human Services has made a determination
17 described in section 1192(c)(1) of such Act with
18 respect to such designated drug.
19 ‘‘(4) With respect to information that is required
20 to be submitted to the Secretary of Health and
21 Human Services under an agreement described in sec-
22 tion 1193(a) of the Social Security Act, the period be-
23 ginning on the date on which such Secretary certifies
24 that such information is overdue and ending on the
25 date that such information is so submitted.
† HR 5376 EAS
124
1 ‘‘(c) SUSPENSION OF TAX.—
2 ‘‘(1) IN GENERAL.—A day shall not be taken
3 into account as a day during a period described in
4 subsection (b) if such day is also a day during the
5 period—
6 ‘‘(A) beginning on the first date on which—
7 ‘‘(i) the notice of terminations of all
8 applicable agreements of the manufacturer
9 have been received by the Secretary of
10 Health and Human Services, and
11 ‘‘(ii) none of the drugs of the manufac-
12 turer of the designated drug are covered by
13 an agreement under section 1860D-14A or
14 1860D-14C of the Social Security Act, and
15 ‘‘(B) ending on the last day of February fol-
16 lowing the earlier of—
17 ‘‘(i) the first day after the date de-
18 scribed in subparagraph (A) on which the
19 manufacturer enters into any subsequent
20 applicable agreement, or
21 ‘‘(ii) the first date any drug of the
22 manufacturer of the designated drug is cov-
23 ered by an agreement under section 1860D-
24 14A or 1860D-14C of the Social Security
25 Act.
† HR 5376 EAS
125
1 ‘‘(2) APPLICABLE AGREEMENT.—For purposes of
2 this subsection, the term ‘applicable agreement’ means
3 the following:
4 ‘‘(A) An agreement under—
5 ‘‘(i) the Medicare coverage gap dis-
6 count program under section 1860D-14A of
7 the Social Security Act, or
8 ‘‘(ii) the manufacturer discount pro-
9 gram under section 1860D-14C of such Act.
10 ‘‘(B) A rebate agreement described in sec-
11 tion 1927(b) of such Act.
12 ‘‘(d) APPLICABLE PERCENTAGE.—For purposes of this
13 section, the term ‘applicable percentage’ means—
14 ‘‘(1) in the case of sales of a designated drug
15 during the first 90 days described in subsection (b)
16 with respect to such drug, 65 percent,
17 ‘‘(2) in the case of sales of such drug during the
18 91st day through the 180th day described in sub-
19 section (b) with respect to such drug, 75 percent,
20 ‘‘(3) in the case of sales of such drug during the
21 181st day through the 270th day described in sub-
22 section (b) with respect to such drug, 85 percent, and
23 ‘‘(4) in the case of sales of such drug during any
24 subsequent day, 95 percent.
25 ‘‘(e) DEFINITIONS.—For purposes of this section—
† HR 5376 EAS
126
1 ‘‘(1) DESIGNATED DRUG.—The term ‘designated
2 drug’ means any negotiation-eligible drug (as defined
3 in section 1192(d) of the Social Security Act) in-
4 cluded on the list published under section 1192(a) of
5 such Act which is manufactured or produced in the
6 United States or entered into the United States for
7 consumption, use, or warehousing.
8 ‘‘(2) UNITED STATES.—The term ‘United States’
9 has the meaning given such term by section
10 4612(a)(4).
11 ‘‘(3) OTHER TERMS.—The terms ‘initial price
12 applicability year’, ‘price applicability period’, and
13 ‘maximum fair price’ have the meaning given such
14 terms in section 1191 of the Social Security Act.
15 ‘‘(f) SPECIAL RULES.—
16 ‘‘(1) COORDINATION WITH RULES FOR POSSES-
17 SIONS OF THE UNITED STATES.—Rules similar to the
18 rules of paragraphs (2) and (4) of section 4132(c)
19 shall apply for purposes of this section.
20 ‘‘(2) ANTI-ABUSE RULE.—In the case of a sale
21 which was timed for the purpose of avoiding the tax
22 imposed by this section, the Secretary may treat such
23 sale as occurring during a day described in subsection
24 (b).
† HR 5376 EAS
127
1 ‘‘(g) EXPORTS.—Rules similar to the rules of section
2 4662(e) (other than section 4662(e)(2)(A)(ii)(II)) shall
3 apply for purposes of this chapter.
4 ‘‘(h) REGULATIONS.—The Secretary shall prescribe
5 such regulations and other guidance as may be necessary
6 to carry out this section.’’.
7 (b) NO DEDUCTION FOR EXCISE TAX PAYMENTS.—
8 Section 275(a)(6) of the Internal Revenue Code of 1986 is
9 amended by inserting ‘‘50A,’’ after ‘‘46,’’.
10 (c) CLERICAL AMENDMENT.—The table of chapters for
11 subtitle D of the Internal Revenue Code of 1986 is amended
12 by adding at the end the following new item:
‘‘CHAPTER 50A—DESIGNATED DRUGS’’.
13 (d) EFFECTIVE DATE.—The amendments made by this
14 section shall apply to sales after the date of the enactment
15 of this Act.
16 SEC. 11004. FUNDING.
17 In addition to amounts otherwise available, there is
18 appropriated to the Centers for Medicare & Medicaid Serv-
19 ices, out of any money in the Treasury not otherwise appro-
20 priated, $3,000,000,000 for fiscal year 2022, to remain
21 available until expended, to carry out the provisions of, in-
22 cluding the amendments made by, this part.
† HR 5376 EAS
128
1 PART 2—PRESCRIPTION DRUG INFLATION
2 REBATES
3 SEC. 11101. MEDICARE PART B REBATE BY MANUFACTUR-
4 ERS.
5 (a) IN GENERAL.—Section 1847A of the Social Secu-
6 rity Act (42 U.S.C. 1395w–3a) is amended by redesignating
7 subsection (i) as subsection (j) and by inserting after sub-
8 section (h) the following subsection:
9 ‘‘(i) REBATE BY MANUFACTURERS FOR SINGLE
10 SOURCE DRUGS AND BIOLOGICALS WITH PRICES INCREAS-
11 ING FASTER THAN INFLATION.—
12 ‘‘(1) REQUIREMENTS.—
13 ‘‘(A) SECRETARIAL PROVISION OF INFORMA-
14 TION.—Not later than 6 months after the end of
15 each calendar quarter beginning on or after Jan-
16 uary 1, 2023, the Secretary shall, for each part
17 B rebatable drug, report to each manufacturer of
18 such part B rebatable drug the following for such
19 calendar quarter:
20 ‘‘(i) Information on the total number
21 of units of the billing and payment code de-
22 scribed in subparagraph (A)(i) of para-
23 graph (3) with respect to such drug and cal-
24 endar quarter.
25 ‘‘(ii) Information on the amount (if
26 any) of the excess average sales price in-
† HR 5376 EAS
129
1 crease described in subparagraph (A)(ii) of
2 such paragraph for such drug and calendar
3 quarter.
4 ‘‘(iii) The rebate amount specified
5 under such paragraph for such part B
6 rebatable drug and calendar quarter.
7 ‘‘(B) MANUFACTURER REQUIREMENT.—For
8 each calendar quarter beginning on or after Jan-
9 uary 1, 2023, the manufacturer of a part B
10 rebatable drug shall, for such drug, not later
11 than 30 days after the date of receipt from the
12 Secretary of the information described in sub-
13 paragraph (A) for such calendar quarter, provide
14 to the Secretary a rebate that is equal to the
15 amount specified in paragraph (3) for such drug
16 for such calendar quarter.
17 ‘‘(C) TRANSITION RULE FOR REPORTING.—
18 The Secretary may, for each part B rebatable
19 drug, delay the timeframe for reporting the in-
20 formation described in subparagraph (A) for cal-
21 endar quarters beginning in 2023 and 2024
22 until not later than September 30, 2025.
23 ‘‘(2) PART B REBATABLE DRUG DEFINED.—
24 ‘‘(A) IN GENERAL.—In this subsection, the
25 term ‘part B rebatable drug’ means a single
† HR 5376 EAS
130
1 source drug or biological (as defined in subpara-
2 graph (D) of subsection (c)(6)), including a bio-
3 similar biological product (as defined in sub-
4 paragraph (H) of such subsection) but excluding
5 a qualifying biosimilar biological product (as de-
6 fined in subsection (b)(8)(B)(iii)), for which
7 payment is made under this part, except such
8 term shall not include such a drug or biologi-
9 cal—
10 ‘‘(i) if, as determined by the Secretary,
11 the average total allowed charges for such
12 drug or biological under this part for a year
13 per individual that uses such a drug or bio-
14 logical are less than, subject to subpara-
15 graph (B), $100; or
16 ‘‘(ii) that is a vaccine described in sub-
17 paragraph (A) or (B) of section 1861(s)(10).
18 ‘‘(B) INCREASE.—The dollar amount ap-
19 plied under subparagraph (A)(i)—
20 ‘‘(i) for 2024, shall be the dollar
21 amount specified under such subparagraph
22 for 2023, increased by the percentage in-
23 crease in the consumer price index for all
24 urban consumers (United States city aver-
† HR 5376 EAS
131
1 age) for the 12-month period ending with
2 June of the previous year; and
3 ‘‘(ii) for a subsequent year, shall be the
4 dollar amount specified in this clause (or
5 clause (i)) for the previous year (without
6 application of subparagraph (C)), increased
7 by the percentage increase in the consumer
8 price index for all urban consumers (United
9 States city average) for the 12-month period
10 ending with June of the previous year.
11 ‘‘(C) ROUNDING.—Any dollar amount deter-
12 mined under subparagraph (B) that is not a
13 multiple of $10 shall be rounded to the nearest
14 multiple of $10.
15 ‘‘(3) REBATE AMOUNT.—
16 ‘‘(A) IN GENERAL.—For purposes of para-
17 graph (1), the amount specified in this para-
18 graph for a part B rebatable drug assigned to a
19 billing and payment code for a calendar quarter
20 is, subject to subparagraphs (B) and (G) and
21 paragraph (4), the estimated amount equal to
22 the product of—
23 ‘‘(i) the total number of units deter-
24 mined under subparagraph (B) for the bill-
25 ing and payment code of such drug; and
† HR 5376 EAS
132
1 ‘‘(ii) the amount (if any) by which—
2 ‘‘(I) the amount equal to—
3 ‘‘(aa) in the case of a part B
4 rebatable drug described in para-
5 graph (1)(B) of subsection (b),
6 106 percent of the amount deter-
7 mined under paragraph (4) of
8 such section for such drug during
9 the calendar quarter; or
10 ‘‘(bb) in the case of a part B
11 rebatable drug described in para-
12 graph (1)(C) of such subsection,
13 the payment amount under such
14 paragraph for such drug during
15 the calendar quarter; exceeds
16 ‘‘(II) the inflation-adjusted pay-
17 ment amount determined under sub-
18 paragraph (C) for such part B
19 rebatable drug during the calendar
20 quarter.
21 ‘‘(B) TOTAL NUMBER OF UNITS.—For pur-
22 poses of subparagraph (A)(i), the total number of
23 units for the billing and payment code with re-
24 spect to a part B rebatable drug furnished dur-
† HR 5376 EAS
133
1 ing a calendar quarter described in subpara-
2 graph (A) is equal to—
3 ‘‘(i) the number of units for the billing
4 and payment code of such drug furnished
5 during such calendar quarter, minus
6 ‘‘(ii) the number of units for such bill-
7 ing and payment code of such drug fur-
8 nished during such calendar quarter—
9 ‘‘(I) with respect to which the
10 manufacturer provides a discount
11 under the program under section 340B
12 of the Public Health Service Act or a
13 rebate under section 1927; or
14 ‘‘(II) that are packaged into the
15 payment amount for an item or service
16 and are not separately payable.
17 ‘‘(C) DETERMINATION OF INFLATION-AD-
18 JUSTED PAYMENT AMOUNT.—The inflation-ad-
19 justed payment amount determined under this
20 subparagraph for a part B rebatable drug for a
21 calendar quarter is—
22 ‘‘(i) the payment amount for the bill-
23 ing and payment code for such drug in the
24 payment amount benchmark quarter (as de-
25 fined in subparagraph (D)); increased by
† HR 5376 EAS
134
1 ‘‘(ii) the percentage by which the rebate
2 period CPI–U (as defined in subparagraph
3 (F)) for the calendar quarter exceeds the
4 benchmark period CPI–U (as defined in
5 subparagraph (E)).
6 ‘‘(D) PAYMENT AMOUNT BENCHMARK QUAR-
7 TER.—The term ‘payment amount benchmark
8 quarter’ means the calendar quarter beginning
9 July 1, 2021.
10 ‘‘(E) BENCHMARK PERIOD CPI–U.—The
11 term ‘benchmark period CPI–U’ means the con-
12 sumer price index for all urban consumers
13 (United States city average) for January 2021.
14 ‘‘(F) REBATE PERIOD CPI–U.—The term
15 ‘rebate period CPI–U’ means, with respect to a
16 calendar quarter described in subparagraph (C),
17 the greater of the benchmark period CPI–U and
18 the consumer price index for all urban con-
19 sumers (United States city average) for the first
20 month of the calendar quarter that is two cal-
21 endar quarters prior to such described calendar
22 quarter.
23 ‘‘(G) REDUCTION OR WAIVER FOR SHORT-
24 AGES AND SEVERE SUPPLY CHAIN DISRUP-
25 TIONS.—The Secretary shall reduce or waive the
† HR 5376 EAS
135
1 amount under subparagraph (A) with respect to
2 a part B rebatable drug and a calendar quar-
3 ter—
4 ‘‘(i) in the case of a part B rebatable
5 drug that is described as currently in short-
6 age on the shortage list in effect under sec-
7 tion 506E of the Federal Food, Drug, and
8 Cosmetic Act at any point during the cal-
9 endar quarter; or
10 ‘‘(ii) in the case of a biosimilar bio-
11 logical product, when the Secretary deter-
12 mines there is a severe supply chain disrup-
13 tion during the calendar quarter, such as
14 that caused by a natural disaster or other
15 unique or unexpected event.
16 ‘‘(4) SPECIAL TREATMENT OF CERTAIN DRUGS
17 AND EXEMPTION.—
18 ‘‘(A) SUBSEQUENTLY APPROVED DRUGS.—
19 In the case of a part B rebatable drug first ap-
20 proved or licensed by the Food and Drug Admin-
21 istration after December 1, 2020, clause (i) of
22 paragraph (3)(C) shall be applied as if the term
23 ‘payment amount benchmark quarter’ were de-
24 fined under paragraph (3)(D) as the third full
25 calendar quarter after the day on which the drug
† HR 5376 EAS
136
1 was first marketed and clause (ii) of paragraph
2 (3)(C) shall be applied as if the term ‘benchmark
3 period CPI–U’ were defined under paragraph
4 (3)(E) as if the reference to ‘January 2021’
5 under such paragraph were a reference to ‘the
6 first month of the first full calendar quarter after
7 the day on which the drug was first marketed’.
8 ‘‘(B) TIMELINE FOR PROVISION OF REBATES
9 FOR SUBSEQUENTLY APPROVED DRUGS.—In the
10 case of a part B rebatable drug first approved or
11 licensed by the Food and Drug Administration
12 after December 1, 2020, paragraph (1)(B) shall
13 be applied as if the reference to ‘January 1,
14 2023’ under such paragraph were a reference to
15 ‘the later of the 6th full calendar quarter after
16 the day on which the drug was first marketed or
17 January 1, 2023’.
18 ‘‘(C) SELECTED DRUGS.—In the case of a
19 part B rebatable drug that is a selected drug (as
20 defined in section 1192(c)) with respect to a
21 price applicability period (as defined in section
22 1191(b)(2)), in the case such drug is no longer
23 considered to be a selected drug under section
24 1192(c), for each applicable period (as defined
25 under subsection (g)(7)) beginning after the price
† HR 5376 EAS
137
1 applicability period with respect to such drug,
2 clause (i) of paragraph (3)(C) shall be applied as
3 if the term ‘payment amount benchmark quarter’
4 were defined under paragraph (3)(D) as the cal-
5 endar quarter beginning January 1 of the last
6 year during such price applicability period with
7 respect to such selected drug and clause (ii) of
8 paragraph (3)(C) shall be applied as if the term
9 ‘benchmark period CPI–U’ were defined under
10 paragraph (3)(E) as if the reference to ‘January
11 2021’ under such paragraph were a reference to
12 ‘the July of the year preceding such last year’.
13 ‘‘(5) APPLICATION TO BENEFICIARY COINSUR-
14 ANCE.—In the case of a part B rebatable drug fur-
15 nished on or after April 1, 2023, if the payment
16 amount described in paragraph (3)(A)(ii)(I) (or, in
17 the case of a part B rebatable drug that is a selected
18 drug (as defined in section 1192(c)), the payment
19 amount described in subsection (b)(1)(B) for such
20 drug) for a calendar quarter exceeds the inflation ad-
21 justed payment for such quarter—
22 ‘‘(A) in computing the amount of any coin-
23 surance applicable under this part to an indi-
24 vidual to whom such drug is furnished, the com-
25 putation of such coinsurance shall be equal to 20
† HR 5376 EAS
138
1 percent of the inflation-adjusted payment
2 amount determined under paragraph (3)(C) for
3 such part B rebatable drug; and
4 ‘‘(B) the amount of such coinsurance for
5 such calendar quarter, as computed under sub-
6 paragraph (A), shall be applied as a percent, as
7 determined by the Secretary, to the payment
8 amount that would otherwise apply under sub-
9 paragraphs (B) or (C) of subsection (b)(1).
10 ‘‘(6) REBATE DEPOSITS.—Amounts paid as re-
11 bates under paragraph (1)(B) shall be deposited into
12 the Federal Supplementary Medical Insurance Trust
13 Fund established under section 1841.
14 ‘‘(7) CIVIL MONEY PENALTY.—If a manufacturer
15 of a part B rebatable drug has failed to comply with
16 the requirements under paragraph (1)(B) for such
17 drug for a calendar quarter, the manufacturer shall
18 be subject to, in accordance with a process established
19 by the Secretary pursuant to regulations, a civil
20 money penalty in an amount equal to at least 125
21 percent of the amount specified in paragraph (3) for
22 such drug for such calendar quarter. The provisions
23 of section 1128A (other than subsections (a) (with re-
24 spect to amounts of penalties or additional assess-
25 ments) and (b)) shall apply to a civil money penalty
† HR 5376 EAS
139
1 under this paragraph in the same manner as such
2 provisions apply to a penalty or proceeding under
3 section 1128A(a).
4 ‘‘(8) LIMITATION ON ADMINISTRATIVE OR JUDI-
5 CIAL REVIEW.—There shall be no administrative or
6 judicial review of any of the following:
7 ‘‘(A) The determination of units under this
8 subsection.
9 ‘‘(B) The determination of whether a drug
10 is a part B rebatable drug under this subsection.
11 ‘‘(C) The calculation of the rebate amount
12 under this subsection.
13 ‘‘(D) The computation of coinsurance under
14 paragraph (5) of this subsection.
15 ‘‘(E) The computation of amounts paid
16 under section 1833(a)(1)(EE).’’.
17 (b) AMOUNTS PAYABLE; COST-SHARING.—Section
18 1833 of the Social Security Act (42 U.S.C. 1395l) is amend-
19 ed—
20 (1) in subsection (a)(1)—
21 (A) in subparagraph (G), by inserting ‘‘,
22 subject to subsection (i)(9),’’ after ‘‘the amounts
23 paid’’;
† HR 5376 EAS
140
1 (B) in subparagraph (S), by striking ‘‘with
2 respect to’’ and inserting ‘‘subject to subpara-
3 graph (EE), with respect to’’;
4 (C) by striking ‘‘and (DD)’’ and inserting
5 ‘‘(DD)’’; and
6 (D) by inserting before the semicolon at the
7 end the following: ‘‘, and (EE) with respect to a
8 part B rebatable drug (as defined in paragraph
9 (2) of section 1847A(i)) furnished on or after
10 April 1, 2023, for which the payment amount for
11 a calendar quarter under paragraph
12 (3)(A)(ii)(I) of such section (or, in the case of a
13 part B rebatable drug that is a selected drug (as
14 defined in section 1192(c) for which, the pay-
15 ment amount described in section
16 1847A(b)(1)(B)) for such drug for such quarter
17 exceeds the inflation-adjusted payment under
18 paragraph (3)(A)(ii)(II) of such section for such
19 quarter, the amounts paid shall be equal to the
20 percent of the payment amount under paragraph
21 (3)(A)(ii)(I) of such section or section
22 1847A(b)(1)(B), as applicable, that equals the
23 difference between (i) 100 percent, and (ii) the
24 percent applied under section 1847A(i)(5)(B)’’;
† HR 5376 EAS
141
1 (2) in subsection (i), by adding at the end the
2 following new paragraph:
3 ‘‘(9) In the case of a part B rebatable drug (as defined
4 in paragraph (2) of section 1847A(i)) for which payment
5 under this subsection is not packaged into a payment for
6 a service furnished on or after April 1, 2023, under the re-
7 vised payment system under this subsection, in lieu of cal-
8 culation of coinsurance and the amount of payment other-
9 wise applicable under this subsection, the provisions of sec-
10 tion 1847A(i)(5) and paragraph (1)(EE) of subsection (a),
11 shall, as determined appropriate by the Secretary, apply
12 under this subsection in the same manner as such provi-
13 sions of section 1847A(i)(5) and subsection (a) apply under
14 such section and subsection.’’; and
15 (3) in subsection (t)(8), by adding at the end the
16 following new subparagraph:
17 ‘‘(F) PART B REBATABLE DRUGS.—In the
18 case of a part B rebatable drug (as defined in
19 paragraph (2) of section 1847A(i), except if such
20 drug does not have a copayment amount as a re-
21 sult of application of subparagraph (E)) for
22 which payment under this part is not packaged
23 into a payment for a covered OPD service (or
24 group of services) furnished on or after April 1,
25 2023, and the payment for such drug under this
† HR 5376 EAS
142
1 subsection is the same as the amount for a cal-
2 endar quarter under paragraph (3)(A)(ii)(I) of
3 section 1847A(i), under the system under this
4 subsection, in lieu of calculation of the copay-
5 ment amount and the amount of payment other-
6 wise applicable under this subsection (other than
7 the application of the limitation described in
8 subparagraph (C)), the provisions of section
9 1847A(i)(5) and paragraph (1)(EE) of sub-
10 section (a), shall, as determined appropriate by
11 the Secretary, apply under this subsection in the
12 same manner as such provisions of section
13 1847A(i)(5) and subsection (a) apply under such
14 section and subsection.’’.
15 (c) CONFORMING AMENDMENTS.—
16 (1) TO PART B ASP CALCULATION.—Section
17 1847A(c)(3) of the Social Security Act (42 U.S.C.
18 1395w–3a(c)(3)) is amended by inserting ‘‘subsection
19 (i) or’’ before ‘‘section 1927’’.
20 (2) EXCLUDING PART B DRUG INFLATION RE-
21 BATE FROM BEST PRICE.—Section
22 1927(c)(1)(C)(ii)(I) of the Social Security Act (42
23 U.S.C. 1396r–8(c)(1)(C)(ii)(I)) is amended by insert-
24 ing ‘‘or section 1847A(i)’’ after ‘‘this section’’.
† HR 5376 EAS
143
1 (3) COORDINATION WITH MEDICAID REBATE IN-
2 FORMATION DISCLOSURE.—Section 1927(b)(3)(D)(i)
3 of the Social Security Act (42 U.S.C. 1396r–
4 8(b)(3)(D)(i)) is amended by inserting ‘‘and the re-
5 bate’’ after ‘‘the payment amount’’.
6 (4) EXCLUDING PART B DRUG INFLATION RE-
7 BATES FROM AVERAGE MANUFACTURER PRICE.—Sec-
8 tion 1927(k)(1)(B)(i) of the Social Security Act (42
9 U.S.C. 1396r–8(k)(1)(B)(i)), as amended by section
10 11001(b)(3), is amended—
11 (A) in subclause (V), by striking ‘‘and’’ at
12 the end;
13 (B) in subclause (VI), by striking the period
14 at the end and inserting a semicolon; and
15 (C) by adding at the end the following new
16 subclause:
17 ‘‘(VII) rebates paid by manufac-
18 turers under section 1847A(i); and’’.
19 (d) FUNDING.—In addition to amounts otherwise
20 available, there are appropriated to the Centers for Medi-
21 care & Medicaid Services, out of any money in the Treasury
22 not otherwise appropriated, $80,000,000 for fiscal year
23 2022, including $12,500,000 to carry out the provisions of,
24 including the amendments made by, this section in fiscal
25 year 2022, and $7,500,000 to carry out the provisions of,
† HR 5376 EAS
144
1 including the amendments made by, this section in each
2 of fiscal years 2023 through 2031, to remain available until
3 expended.
4 SEC. 11102. MEDICARE PART D REBATE BY MANUFACTUR-
5 ERS.
6 (a) IN GENERAL.—Part D of title XVIII of the Social
7 Security Act is amended by inserting after section 1860D–
8 14A (42 U.S.C. 1395w–114a) the following new section:
9 ‘‘SEC. 1860D–14B. MANUFACTURER REBATE FOR CERTAIN
10 DRUGS WITH PRICES INCREASING FASTER
11 THAN INFLATION.
12 ‘‘(a) REQUIREMENTS.—
13 ‘‘(1) SECRETARIAL PROVISION OF INFORMA-
14 TION.—Not later than 9 months after the end of each
15 applicable period (as defined in subsection (g)(7)),
16 subject to paragraph (3), the Secretary shall, for each
17 part D rebatable drug, report to each manufacturer of
18 such part D rebatable drug the following for such pe-
19 riod:
20 ‘‘(A) The amount (if any) of the excess an-
21 nual manufacturer price increase described in
22 subsection (b)(1)(A)(ii) for each dosage form and
23 strength with respect to such drug and period.
† HR 5376 EAS
145
1 ‘‘(B) The rebate amount specified under
2 subsection (b) for each dosage form and strength
3 with respect to such drug and period.
4 ‘‘(2) MANUFACTURER REQUIREMENTS.—For each
5 applicable period, the manufacturer of a part D
6 rebatable drug, for each dosage form and strength
7 with respect to such drug, not later than 30 days after
8 the date of receipt from the Secretary of the informa-
9 tion described in paragraph (1) for such period, shall
10 provide to the Secretary a rebate that is equal to the
11 amount specified in subsection (b) for such dosage
12 form and strength with respect to such drug for such
13 period.
14 ‘‘(3) TRANSITION RULE FOR REPORTING.—The
15 Secretary may, for each rebatable covered part D
16 drug, delay the timeframe for reporting the informa-
17 tion and rebate amount described in subparagraphs
18 (A) and (B) of such paragraph for the applicable pe-
19 riods beginning October 1, 2022, and October 1, 2023,
20 until not later than December 31, 2025.
21 ‘‘(b) REBATE AMOUNT.—
22 ‘‘(1) IN GENERAL.—
23 ‘‘(A) CALCULATION.—For purposes of this
24 section, the amount specified in this subsection
25 for a dosage form and strength with respect to a
† HR 5376 EAS
146
1 part D rebatable drug and applicable period is,
2 subject to subparagraph (C), paragraph (5)(B),
3 and paragraph (6), the estimated amount equal
4 to the product of—
5 ‘‘(i) subject to subparagraph (B) of this
6 paragraph, the total number of units of
7 such dosage form and strength for each
8 rebatable covered part D drug dispensed
9 under this part during the applicable pe-
10 riod; and
11 ‘‘(ii) the amount (if any) by which—
12 ‘‘(I) the annual manufacturer
13 price (as determined in paragraph (2))
14 paid for such dosage form and strength
15 with respect to such part D rebatable
16 drug for the period; exceeds
17 ‘‘(II) the inflation-adjusted pay-
18 ment amount determined under para-
19 graph (3) for such dosage form and
20 strength with respect to such part D
21 rebatable drug for the period.
22 ‘‘(B) EXCLUDED UNITS.—For purposes of
23 subparagraph (A)(i), beginning with plan year
24 2026, the Secretary shall exclude from the total
25 number of units for a dosage form and strength
† HR 5376 EAS
147
1 with respect to a part D rebatable drug, with re-
2 spect to an applicable period, units of each dos-
3 age form and strength of such part D rebatable
4 drug for which the manufacturer provides a dis-
5 count under the program under section 340B of
6 the Public Health Service Act.
7 ‘‘(C) REDUCTION OR WAIVER FOR SHORT-
8 AGES AND SEVERE SUPPLY CHAIN DISRUP-
9 TIONS.—The Secretary shall reduce or waive the
10 amount under subparagraph (A) with respect to
11 a part D rebatable drug and an applicable pe-
12 riod—
13 ‘‘(i) in the case of a part D rebatable
14 drug that is described as currently in short-
15 age on the shortage list in effect under sec-
16 tion 506E of the Federal Food, Drug, and
17 Cosmetic Act at any point during the appli-
18 cable period;
19 ‘‘(ii) in the case of a generic part D
20 rebatable drug (described in subsection
21 (g)(1)(C)(ii)) or a biosimilar (defined as a
22 biological product licensed under section
23 351(k) of the Public Health Service Act),
24 when the Secretary determines there is a se-
25 vere supply chain disruption during the ap-
† HR 5376 EAS
148
1 plicable period, such as that caused by a
2 natural disaster or other unique or unex-
3 pected event; and
4 ‘‘(iii) in the case of a generic Part D
5 rebatable drug (as so described), if the Sec-
6 retary determines that without such reduc-
7 tion or waiver, the drug is likely to be de-
8 scribed as in shortage on such shortage list
9 during a subsequent applicable period.
10 ‘‘(2) DETERMINATION OF ANNUAL MANUFAC-
11 TURER PRICE.—The annual manufacturer price de-
12 termined under this paragraph for a dosage form and
13 strength, with respect to a part D rebatable drug and
14 an applicable period, is the sum of the products of—
15 ‘‘(A) the average manufacturer price (as de-
16 fined in subsection (g)(6)) of such dosage form
17 and strength, as calculated for a unit of such
18 drug, with respect to each of the calendar quar-
19 ters of such period; and
20 ‘‘(B) the ratio of—
21 ‘‘(i) the total number of units of such
22 dosage form and strength reported under
23 section 1927 with respect to each such cal-
24 endar quarter of such period; to
† HR 5376 EAS
149
1 ‘‘(ii) the total number of units of such
2 dosage form and strength reported under
3 section 1927 with respect to such period, as
4 determined by the Secretary.
5 ‘‘(3) DETERMINATION OF INFLATION-ADJUSTED
6 PAYMENT AMOUNT.—The inflation-adjusted payment
7 amount determined under this paragraph for a dos-
8 age form and strength with respect to a part D
9 rebatable drug for an applicable period, subject to
10 paragraph (5), is—
11 ‘‘(A) the benchmark period manufacturer
12 price determined under paragraph (4) for such
13 dosage form and strength with respect to such
14 drug and period; increased by
15 ‘‘(B) the percentage by which the applicable
16 period CPI–U (as defined in subsection (g)(5))
17 for the period exceeds the benchmark period
18 CPI–U (as defined in subsection (g)(4)).
19 ‘‘(4) DETERMINATION OF BENCHMARK PERIOD
20 MANUFACTURER PRICE.—The benchmark period man-
21 ufacturer price determined under this paragraph for
22 a dosage form and strength, with respect to a part D
23 rebatable drug and an applicable period, is the sum
24 of the products of—
† HR 5376 EAS
150
1 ‘‘(A) the average manufacturer price (as de-
2 fined in subsection (g)(6)) of such dosage form
3 and strength, as calculated for a unit of such
4 drug, with respect to each of the calendar quar-
5 ters of the payment amount benchmark period
6 (as defined in subsection (g)(3)); and
7 ‘‘(B) the ratio of—
8 ‘‘(i) the total number of units reported
9 under section 1927 of such dosage form and
10 strength with respect to each such calendar
11 quarter of such payment amount benchmark
12 period; to
13 ‘‘(ii) the total number of units reported
14 under section 1927 of such dosage form and
15 strength with respect to such payment
16 amount benchmark period.
17 ‘‘(5) SPECIAL TREATMENT OF CERTAIN DRUGS
18 AND EXEMPTION.—
19 ‘‘(A) SUBSEQUENTLY APPROVED DRUGS.—
20 In the case of a part D rebatable drug first ap-
21 proved or licensed by the Food and Drug Admin-
22 istration after October 1, 2021, subparagraphs
23 (A) and (B) of paragraph (4) shall be applied as
24 if the term ‘payment amount benchmark period’
25 were defined under subsection (g)(3) as the first
† HR 5376 EAS
151
1 calendar year beginning after the day on which
2 the drug was first marketed and subparagraph
3 (B) of paragraph (3) shall be applied as if the
4 term ‘benchmark period CPI–U’ were defined
5 under subsection (g)(4) as if the reference to
6 ‘January 2021’ under such subsection were a ref-
7 erence to ‘January of the first year beginning
8 after the date on which the drug was first mar-
9 keted’.
10 ‘‘(B) TREATMENT OF NEW FORMULA-
11 TIONS.—
12 ‘‘(i) IN GENERAL.—In the case of a
13 part D rebatable drug that is a line exten-
14 sion of a part D rebatable drug that is an
15 oral solid dosage form, the Secretary shall
16 establish a formula for determining the re-
17 bate amount under paragraph (1) and the
18 inflation adjusted payment amount under
19 paragraph (3) with respect to such part D
20 rebatable drug and an applicable period,
21 consistent with the formula applied under
22 subsection (c)(2)(C) of section 1927 for de-
23 termining a rebate obligation for a rebate
24 period under such section.
† HR 5376 EAS
152
1 ‘‘(ii) LINE EXTENSION DEFINED.—In
2 this subparagraph, the term ‘line extension’
3 means, with respect to a part D rebatable
4 drug, a new formulation of the drug, such
5 as an extended release formulation, but does
6 not include an abuse-deterrent formulation
7 of the drug (as determined by the Sec-
8 retary), regardless of whether such abuse-de-
9 terrent formulation is an extended release
10 formulation.
11 ‘‘(C) SELECTED DRUGS.—In the case of a
12 part D rebatable drug that is a selected drug (as
13 defined in section 1192(c)) with respect to a
14 price applicability period (as defined in section
15 1191(b)(2)), in the case such drug is no longer
16 considered to be a selected drug under section
17 1192(c), for each applicable period (as defined
18 under subsection (g)(7)) beginning after the price
19 applicability period with respect to such drug,
20 subparagraphs (A) and (B) of paragraph (4)
21 shall be applied as if the term ‘payment amount
22 benchmark period’ were defined under subsection
23 (g)(3) as the last year beginning during such
24 price applicability period with respect to such
25 selected drug and subparagraph (B) of para-
† HR 5376 EAS
153
1 graph (3) shall be applied as if the term ‘bench-
2 mark period CPI–U’ were defined under sub-
3 section (g)(4) as if the reference to ‘January
4 2021’ under such subsection were a reference to
5 ‘January of the last year beginning during such
6 price applicability period with respect to such
7 drug’.
8 ‘‘(6) RECONCILIATION IN CASE OF REVISED IN-
9 FORMATION.—The Secretary shall provide for a meth-
10 od and process under which, in the case where a PDP
11 sponsor of a prescription drug plan or an MA organi-
12 zation offering an MA–PD plan submits revisions to
13 the number of units of a rebatable covered part D
14 drug dispensed, the Secretary determines, pursuant to
15 such revisions, adjustments, if any, to the calculation
16 of the amount specified in this subsection for a dosage
17 form and strength with respect to such part D
18 rebatable drug and an applicable period and rec-
19 onciles any overpayments or underpayments in
20 amounts paid as rebates under this subsection. Any
21 identified underpayment shall be rectified by the
22 manufacturer not later than 30 days after the date of
23 receipt from the Secretary of information on such un-
24 derpayment.
† HR 5376 EAS
154
1 ‘‘(c) REBATE DEPOSITS.—Amounts paid as rebates
2 under subsection (b) shall be deposited into the Medicare
3 Prescription Drug Account in the Federal Supplementary
4 Medical Insurance Trust Fund established under section
5 1841.
6 ‘‘(d) INFORMATION.—For purposes of carrying out this
7 section, the Secretary shall use information submitted by—
8 ‘‘(1) manufacturers under section 1927(b)(3);
9 ‘‘(2) States under section 1927(b)(2)(A); and
10 ‘‘(3) PDP sponsors of prescription drug plans
11 and MA organization offering MA–PD plans under
12 this part.
13 ‘‘(e) CIVIL MONEY PENALTY.—If a manufacturer of a
14 part D rebatable drug has failed to comply with the require-
15 ment under subsection (a)(2) with respect to such drug for
16 an applicable period, the manufacturer shall be subject to
17 a civil money penalty in an amount equal to 125 percent
18 of the amount specified in subsection (b) for such drug for
19 such period. The provisions of section 1128A (other than
20 subsections (a) (with respect to amounts of penalties or ad-
21 ditional assessments) and (b)) shall apply to a civil money
22 penalty under this subsection in the same manner as such
23 provisions apply to a penalty or proceeding under section
24 1128A(a).
† HR 5376 EAS
155
1 ‘‘(f) LIMITATION ON ADMINISTRATIVE OR JUDICIAL
2 REVIEW.—There shall be no administrative or judicial re-
3 view of any of the following:
4 ‘‘(1) The determination of units under this sec-
5 tion.
6 ‘‘(2) The determination of whether a drug is a
7 part D rebatable drug under this section.
8 ‘‘(3) The calculation of the rebate amount under
9 this section.
10 ‘‘(g) DEFINITIONS.—In this section:
11 ‘‘(1) PART D REBATABLE DRUG.—
12 ‘‘(A) IN GENERAL.—Except as provided in
13 subparagraph (B), the term ‘part D rebatable
14 drug’ means, with respect to an applicable pe-
15 riod, a drug or biological described in subpara-
16 graph (C) that is a covered part D drug (as such
17 term is defined under section 1860D–2(e)).
18 ‘‘(B) EXCLUSION.—
19 ‘‘(i) IN GENERAL.—Such term shall,
20 with respect to an applicable period, not in-
21 clude a drug or biological if the average an-
22 nual total cost under this part for such pe-
23 riod per individual who uses such a drug or
24 biological, as determined by the Secretary,
25 is less than, subject to clause (ii), $100, as
† HR 5376 EAS
156
1 determined by the Secretary using the most
2 recent data available or, if data is not
3 available, as estimated by the Secretary.
4 ‘‘(ii) INCREASE.—The dollar amount
5 applied under clause (i)—
6 ‘‘(I) for the applicable period be-
7 ginning October 1, 2023, shall be the
8 dollar amount specified under such
9 clause for the applicable period begin-
10 ning October 1, 2022, increased by the
11 percentage increase in the consumer
12 price index for all urban consumers
13 (United States city average) for the 12-
14 month period beginning with October
15 of 2023; and
16 ‘‘(II) for a subsequent applicable
17 period, shall be the dollar amount spec-
18 ified in this clause for the previous ap-
19 plicable period, increased by the per-
20 centage increase in the consumer price
21 index for all urban consumers (United
22 States city average) for the 12-month
23 period beginning with October of the
24 previous period.
† HR 5376 EAS
157
1 Any dollar amount specified under this
2 clause that is not a multiple of $10 shall be
3 rounded to the nearest multiple of $10.
4 ‘‘(C) DRUG OR BIOLOGICAL DESCRIBED.—A
5 drug or biological described in this subparagraph
6 is a drug or biological that, as of the first day
7 of the applicable period involved, is—
8 ‘‘(i) a drug approved under a new
9 drug application under section 505(c) of the
10 Federal Food, Drug, and Cosmetic Act;
11 ‘‘(ii) a drug approved under an abbre-
12 viated new drug application under section
13 505(j) of the Federal Food, Drug, and Cos-
14 metic Act, in the case where—
15 ‘‘(I) the reference listed drug ap-
16 proved under section 505(c) of the Fed-
17 eral Food, Drug, and Cosmetic Act, in-
18 cluding any ‘authorized generic drug’
19 (as that term is defined in section
20 505(t)(3) of the Federal Food, Drug,
21 and Cosmetic Act), is not being mar-
22 keted, as identified in the Food and
23 Drug Administration’s National Drug
24 Code Directory;
† HR 5376 EAS
158
1 ‘‘(II) there is no other drug ap-
2 proved under section 505(j) of the Fed-
3 eral Food, Drug, and Cosmetic Act
4 that is rated as therapeutically equiva-
5 lent (under the Food and Drug Admin-
6 istration’s most recent publication of
7 ‘Approved Drug Products with Thera-
8 peutic Equivalence Evaluations’) and
9 that is being marketed, as identified in
10 the Food and Drug Administration’s
11 National Drug Code Directory;
12 ‘‘(III) the manufacturer is not a
13 ‘first applicant’ during the ‘180-day
14 exclusivity period’, as those terms are
15 defined in section 505(j)(5)(B)(iv) of
16 the Federal Food, Drug, and Cosmetic
17 Act; and
18 ‘‘(IV) the manufacturer is not a
19 ‘first approved applicant’ for a com-
20 petitive generic therapy, as that term
21 is defined in section 505(j)(5)(B)(v) of
22 the Federal Food, Drug, and Cosmetic
23 Act; or
24 ‘‘(iii) a biological licensed under sec-
25 tion 351 of the Public Health Service Act.
† HR 5376 EAS
159
1 ‘‘(2) UNIT.—The term ‘unit’ means, with respect
2 to a part D rebatable drug, the lowest dispensable
3 amount (such as a capsule or tablet, milligram of
4 molecules, or grams) of the part D rebatable drug, as
5 reported under section 1927.
6 ‘‘(3) PAYMENT AMOUNT BENCHMARK PERIOD.—
7 The term ‘payment amount benchmark period’ means
8 the period beginning January 1, 2021, and ending in
9 the month immediately prior to October 1, 2021.
10 ‘‘(4) BENCHMARK PERIOD CPI–U.—The term
11 ‘benchmark period CPI–U’ means the consumer price
12 index for all urban consumers (United States city av-
13 erage) for January 2021.
14 ‘‘(5) APPLICABLE PERIOD CPI–U.—The term ‘ap-
15 plicable period CPI–U’ means, with respect to an ap-
16 plicable period, the consumer price index for all
17 urban consumers (United States city average) for the
18 first month of such applicable period.
19 ‘‘(6) AVERAGE MANUFACTURER PRICE.—The
20 term ‘average manufacturer price’ has the meaning,
21 with respect to a part D rebatable drug of a manufac-
22 turer, given such term in section 1927(k)(1), with re-
23 spect to a covered outpatient drug of a manufacturer
24 for a rebate period under section 1927.
† HR 5376 EAS
160
1 ‘‘(7) APPLICABLE PERIOD.—The term ‘applicable
2 period’ means a 12-month period beginning with Oc-
3 tober 1 of a year (beginning with October 1, 2022).
4 ‘‘(h) IMPLEMENTATION FOR 2022, 2023, AND 2024.—
5 The Secretary shall implement this section for 2022, 2023,
6 and 2024 by program instruction or other forms of program
7 guidance.’’.
8 (b) CONFORMING AMENDMENTS.—
9 (1) TO PART B ASP CALCULATION.—Section
10 1847A(c)(3) of the Social Security Act (42 U.S.C.
11 1395w–3a(c)(3)), as amended by section 11101(c)(1),
12 is amended by striking ‘‘subsection (i) or section
13 1927’’ and inserting ‘‘subsection (i), section 1927, or
14 section 1860D–14B’’.
15 (2) EXCLUDING PART D DRUG INFLATION RE-
16 BATE FROM BEST PRICE.—Section
17 1927(c)(1)(C)(ii)(I) of the Social Security Act (42
18 U.S.C. 1396r–8(c)(1)(C)(ii)(I)), as amended by sec-
19 tion 11101(c)(2), is amended by striking ‘‘or section
20 1847A(i)’’ and inserting ‘‘, section 1847A(i), or sec-
21 tion 1860D–14B’’.
22 (3) COORDINATION WITH MEDICAID REBATE IN-
23 FORMATION DISCLOSURE.—Section 1927(b)(3)(D)(i)
24 of the Social Security Act (42 U.S.C. 1396r–
25 8(b)(3)(D)(i)), as amended by sections 11002(b) and
† HR 5376 EAS
161
1 11101(c)(3), is amended by striking ‘‘or section
2 1192(f), including rebates under paragraph (4) of
3 such section’’ and inserting ‘‘, section 1192(f), includ-
4 ing rebates under paragraph (4) of such section, or
5 section 1860D–14B’’.
6 (4) EXCLUDING PART D DRUG INFLATION RE-
7 BATES FROM AVERAGE MANUFACTURER PRICE.—Sec-
8 tion 1927(k)(1)(B)(i) of the Social Security Act (42
9 U.S.C. 1396r–8(k)(1)(B)(i)), as amended by section
10 11001(b)(3) and section 11101(c)(4), is amended by
11 adding at the end the following new subclause:
12 (A) in subclause (VI), by striking ‘‘and’’ at
13 the end;
14 (B) in subclause (VII), by striking the pe-
15 riod at the end and inserting a semicolon; and
16 (C) by adding at the end the following new
17 subclause:
18 ‘‘(VIII) rebates paid by manufac-
19 turers under section 1860D–14B.’’.
20 (c) FUNDING.—In addition to amounts otherwise
21 available, there are appropriated to the Centers for Medi-
22 care & Medicaid Services, out of any money in the Treasury
23 not otherwise appropriated, $80,000,000 for fiscal year
24 2022, including $12,500,000 to carry out the provisions of,
25 including the amendments made by, this section in fiscal
† HR 5376 EAS
162
1 year 2022, and $7,500,000 to carry out the provisions of,
2 including the amendments made by, this section in each
3 of fiscal years 2023 through 2031, to remain available until
4 expended.
5 PART 3—PART D IMPROVEMENTS AND MAXIMUM
6 OUT-OF-POCKET CAP FOR MEDICARE BENE-
7 FICIARIES
8 SEC. 11201. MEDICARE PART D BENEFIT REDESIGN.
9 (a) BENEFIT STRUCTURE REDESIGN.—Section
10 1860D–2(b) of the Social Security Act (42 U.S.C. 1395w–
11 102(b)) is amended—
12 (1) in paragraph (2)—
13 (A) in subparagraph (A), in the matter pre-
14 ceding clause (i), by inserting ‘‘for a year pre-
15 ceding 2025 and for costs above the annual de-
16 ductible specified in paragraph (1) and up to the
17 annual out-of-pocket threshold specified in para-
18 graph (4)(B) for 2025 and each subsequent year’’
19 after ‘‘paragraph (3)’’;
20 (B) in subparagraph (C)—
21 (i) in clause (i), in the matter pre-
22 ceding subclause (I), by inserting ‘‘for a
23 year preceding 2025,’’ after ‘‘paragraph
24 (4),’’; and
† HR 5376 EAS
163
1 (ii) in clause (ii)(III), by striking
2 ‘‘and each subsequent year’’ and inserting
3 ‘‘through 2024’’; and
4 (C) in subparagraph (D)—
5 (i) in clause (i)—
6 (I) in the matter preceding sub-
7 clause (I), by inserting ‘‘for a year pre-
8 ceding 2025,’’ after ‘‘paragraph (4),’’;
9 and
10 (II) in subclause (I)(bb), by strik-
11 ing ‘‘a year after 2018’’ and inserting
12 ‘‘each of years 2019 through 2024’’;
13 and
14 (ii) in clause (ii)(V), by striking ‘‘2019
15 and each subsequent year’’ and inserting
16 ‘‘each of years 2019 through 2024’’;
17 (2) in paragraph (3)(A)—
18 (A) in the matter preceding clause (i), by
19 inserting ‘‘for a year preceding 2025,’’ after
20 ‘‘and (4),’’; and
21 (B) in clause (ii), by striking ‘‘for a subse-
22 quent year’’ and inserting ‘‘for each of years
23 2007 through 2024’’; and
24 (3) in paragraph (4)—
25 (A) in subparagraph (A)—
† HR 5376 EAS
164
1 (i) in clause (i)—
2 (I) by redesignating subclauses (I)
3 and (II) as items (aa) and (bb), re-
4 spectively, and moving the margin of
5 each such redesignated item 2 ems to
6 the right;
7 (II) in the matter preceding item
8 (aa), as redesignated by subclause (I),
9 by striking ‘‘is equal to the greater
10 of—’’ and inserting ‘‘is equal to—
11 ‘‘(I) for a year preceding 2024,
12 the greater of—’’;
13 (III) by striking the period at the
14 end of item (bb), as redesignated by
15 subclause (I), and inserting ‘‘; and’’;
16 and
17 (IV) by adding at the end the fol-
18 lowing:
19 ‘‘(II) for 2024 and each suc-
20 ceeding year, $0.’’; and
21 (ii) in clause (ii)—
22 (I) by striking ‘‘clause (i)(I)’’ and
23 inserting ‘‘clause (i)(I)(aa)’’; and
24 (II) by adding at the end the fol-
25 lowing new sentence: ‘‘The Secretary
† HR 5376 EAS
165
1 shall continue to calculate the dollar
2 amounts specified in clause (i)(I)(aa),
3 including with the adjustment under
4 this clause, after 2023 for purposes of
5 section 1860D–14(a)(1)(D)(iii).’’;
6 (B) in subparagraph (B)—
7 (i) in clause (i)—
8 (I) in subclause (V), by striking
9 ‘‘or’’ at the end;
10 (II) in subclause (VI)—
11 (aa) by striking ‘‘for a subse-
12 quent year’’ and inserting ‘‘for
13 each of years 2021 through 2024’’;
14 and
15 (bb) by striking the period at
16 the end and inserting a semicolon;
17 and
18 (III) by adding at the end the fol-
19 lowing new subclauses:
20 ‘‘(VII) for 2025, is equal to
21 $2,000; or
22 ‘‘(VIII) for a subsequent year, is
23 equal to the amount specified in this
24 subparagraph for the previous year,
25 increased by the annual percentage in-
† HR 5376 EAS
166
1 crease described in paragraph (6) for
2 the year involved.’’; and
3 (ii) in clause (ii), by striking ‘‘clause
4 (i)(II)’’ and inserting ‘‘clause (i)’’;
5 (C) in subparagraph (C)—
6 (i) in clause (i), by striking ‘‘and for
7 amounts’’ and inserting ‘‘and, for a year
8 preceding 2025, for amounts’’; and
9 (ii) in clause (iii)—
10 (I) by redesignating subclauses (I)
11 through (IV) as items (aa) through
12 (dd) and indenting appropriately;
13 (II) by striking ‘‘if such costs are
14 borne or paid’’ and inserting ‘‘if such
15 costs—
16 ‘‘(I) are borne or paid—’’; and
17 (III) in item (dd), by striking the
18 period at the end and inserting ‘‘; or’’;
19 and
20 (IV) by adding at the end the fol-
21 lowing new subclause:
22 ‘‘(II) for 2025 and subsequent
23 years, are reimbursed through insur-
24 ance, a group health plan, or certain
25 other third party payment arrange-
† HR 5376 EAS
167
1 ments, but not including the coverage
2 provided by a prescription drug plan
3 or an MA–PD plan that is basic pre-
4 scription drug coverage (as defined in
5 subsection (a)(3)) or any payments by
6 a manufacturer under the manufac-
7 turer discount program under section
8 1860D–14C.’’; and
9 (D) in subparagraph (E), by striking ‘‘In
10 applying’’ and inserting ‘‘For each of years 2011
11 through 2024, in applying’’.
12 (b) REINSURANCE PAYMENT AMOUNT.—Section
13 1860D–15(b) of the Social Security Act (42 U.S.C. 1395w–
14 115(b)) is amended—
15 (1) in paragraph (1)—
16 (A) by striking ‘‘equal to 80 percent’’ and
17 inserting ‘‘equal to—
18 ‘‘(A) for a year preceding 2025, 80 per-
19 cent’’;
20 (B) in subparagraph (A), as added by sub-
21 paragraph (A), by striking the period at the end
22 and inserting ‘‘; and’’; and
23 (C) by adding at the end the following new
24 subparagraph:
† HR 5376 EAS
168
1 ‘‘(B) for 2025 and each subsequent year, the
2 sum of—
3 ‘‘(i) with respect to applicable drugs
4 (as defined in section 1860D–14C(g)(2)), an
5 amount equal to 20 percent of such allow-
6 able reinsurance costs attributable to that
7 portion of gross covered prescription drug
8 costs as specified in paragraph (3) incurred
9 in the coverage year after such individual
10 has incurred costs that exceed the annual
11 out-of-pocket threshold specified in section
12 1860D–2(b)(4)(B); and
13 ‘‘(ii) with respect to covered part D
14 drugs that are not applicable drugs (as so
15 defined), an amount equal to 40 percent of
16 such allowable reinsurance costs attributable
17 to that portion of gross covered prescription
18 drug costs as specified in paragraph (3) in-
19 curred in the coverage year after such indi-
20 vidual has incurred costs that exceed the an-
21 nual out-of-pocket threshold specified in sec-
22 tion 1860D–2(b)(4)(B).’’;
23 (2) in paragraph (2)—
24 (A) by striking ‘‘COSTS.—For purposes’’
25 and inserting ‘‘COSTS.—
† HR 5376 EAS
169
1 ‘‘(A) IN GENERAL.—Subject to subpara-
2 graph (B), for purposes’’; and
3 (B) by adding at the end the following new
4 subparagraph:
5 ‘‘(B) INCLUSION OF MANUFACTURER DIS-
6 COUNTS ON APPLICABLE DRUGS.—For purposes
7 of applying subparagraph (A), the term ‘allow-
8 able reinsurance costs’ shall include the portion
9 of the negotiated price (as defined in section
10 1860D–14C(g)(6)) of an applicable drug (as de-
11 fined in section 1860D–14C(g)(2)) that was paid
12 by a manufacturer under the manufacturer dis-
13 count program under section 1860D–14C.’’; and
14 (3) in paragraph (3)—
15 (A) in the first sentence, by striking ‘‘For
16 purposes’’ and inserting ‘‘Subject to paragraph
17 (2)(B), for purposes’’; and
18 (B) in the second sentence, by inserting
19 ‘‘(or, with respect to 2025 and subsequent years,
20 in the case of an applicable drug, as defined in
21 section 1860D–14C(g)(2), by a manufacturer)’’
22 after ‘‘by the individual or under the plan’’.
23 (c) MANUFACTURER DISCOUNT PROGRAM.—
24 (1) IN GENERAL.—Part D of title XVIII of the
25 Social Security Act (42 U.S.C. 1395w–101 through
† HR 5376 EAS
170
1 42 U.S.C. 1395w–153), as amended by section 11102,
2 is amended by inserting after section 1860D–14B the
3 following new sections:
4 ‘‘SEC. 1860D–14C. MANUFACTURER DISCOUNT PROGRAM.
5 ‘‘(a) ESTABLISHMENT.—The Secretary shall establish
6 a manufacturer discount program (in this section referred
7 to as the ‘program’). Under the program, the Secretary shall
8 enter into agreements described in subsection (b) with man-
9 ufacturers and provide for the performance of the duties de-
10 scribed in subsection (c).
11 ‘‘(b) TERMS OF AGREEMENT.—
12 ‘‘(1) IN GENERAL.—
13 ‘‘(A) AGREEMENT.—An agreement under
14 this section shall require the manufacturer to
15 provide, in accordance with this section, dis-
16 counted prices for applicable drugs of the manu-
17 facturer that are dispensed to applicable bene-
18 ficiaries on or after January 1, 2025.
19 ‘‘(B) CLARIFICATION.—Nothing in this sec-
20 tion shall be construed as affecting—
21 ‘‘(i) the application of a coinsurance of
22 25 percent of the negotiated price, as ap-
23 plied under paragraph (2)(A) of section
24 1860D–2(b), for costs described in such
25 paragraph; or
† HR 5376 EAS
171
1 ‘‘(ii) the application of the copayment
2 amount described in paragraph (4)(A) of
3 such section, with respect to costs described
4 in such paragraph.
5 ‘‘(C) TIMING OF AGREEMENT.—
6 ‘‘(i) SPECIAL RULE FOR 2025.—In
7 order for an agreement with a manufac-
8 turer to be in effect under this section with
9 respect to the period beginning on January
10 1, 2025, and ending on December 31, 2025,
11 the manufacturer shall enter into such
12 agreement not later than March 1, 2024.
13 ‘‘(ii) 2026 AND SUBSEQUENT YEARS.—
14 In order for an agreement with a manufac-
15 turer to be in effect under this section with
16 respect to plan year 2026 or a subsequent
17 plan year, the manufacturer shall enter into
18 such agreement not later than a calendar
19 quarter or semi-annual deadline established
20 by the Secretary.
21 ‘‘(2) PROVISION OF APPROPRIATE DATA.—Each
22 manufacturer with an agreement in effect under this
23 section shall collect and have available appropriate
24 data, as determined by the Secretary, to ensure that
† HR 5376 EAS
172
1 it can demonstrate to the Secretary compliance with
2 the requirements under the program.
3 ‘‘(3) COMPLIANCE WITH REQUIREMENTS FOR AD-
4 MINISTRATION OF PROGRAM.—Each manufacturer
5 with an agreement in effect under this section shall
6 comply with requirements imposed by the Secretary,
7 as applicable, for purposes of administering the pro-
8 gram, including any determination under subpara-
9 graph (A) of subsection (c)(1) or procedures estab-
10 lished under such subsection (c)(1).
11 ‘‘(4) LENGTH OF AGREEMENT.—
12 ‘‘(A) IN GENERAL.—An agreement under
13 this section shall be effective for an initial period
14 of not less than 12 months and shall be auto-
15 matically renewed for a period of not less than
16 1 year unless terminated under subparagraph
17 (B).
18 ‘‘(B) TERMINATION.—
19 ‘‘(i) BY THE SECRETARY.—The Sec-
20 retary shall provide for termination of an
21 agreement under this section for a knowing
22 and willful violation of the requirements of
23 the agreement or other good cause shown.
24 Such termination shall not be effective ear-
25 lier than 30 days after the date of notice to
† HR 5376 EAS
173
1 the manufacturer of such termination. The
2 Secretary shall provide, upon request, a
3 manufacturer with a hearing concerning
4 such a termination, and such hearing shall
5 take place prior to the effective date of the
6 termination with sufficient time for such ef-
7 fective date to be repealed if the Secretary
8 determines appropriate.
9 ‘‘(ii) BY A MANUFACTURER.—A manu-
10 facturer may terminate an agreement under
11 this section for any reason. Any such termi-
12 nation shall be effective, with respect to a
13 plan year—
14 ‘‘(I) if the termination occurs be-
15 fore January 31 of a plan year, as of
16 the day after the end of the plan year;
17 and
18 ‘‘(II) if the termination occurs on
19 or after January 31 of a plan year, as
20 of the day after the end of the suc-
21 ceeding plan year.
22 ‘‘(iii) EFFECTIVENESS OF TERMI-
23 NATION.—Any termination under this sub-
24 paragraph shall not affect discounts for ap-
25 plicable drugs of the manufacturer that are
† HR 5376 EAS
174
1 due under the agreement before the effective
2 date of its termination.
3 ‘‘(5) EFFECTIVE DATE OF AGREEMENT.—An
4 agreement under this section shall take effect at the
5 start of a calendar quarter or another date specified
6 by the Secretary.
7 ‘‘(c) DUTIES DESCRIBED.—The duties described in
8 this subsection are the following:
9 ‘‘(1) ADMINISTRATION OF PROGRAM.—Admin-
10 istering the program, including—
11 ‘‘(A) the determination of the amount of the
12 discounted price of an applicable drug of a man-
13 ufacturer;
14 ‘‘(B) the establishment of procedures to en-
15 sure that, not later than the applicable number
16 of calendar days after the dispensing of an ap-
17 plicable drug by a pharmacy or mail order serv-
18 ice, the pharmacy or mail order service is reim-
19 bursed for an amount equal to the difference be-
20 tween—
21 ‘‘(i) the negotiated price of the applica-
22 ble drug; and
23 ‘‘(ii) the discounted price of the appli-
24 cable drug;
† HR 5376 EAS
175
1 ‘‘(C) the establishment of procedures to en-
2 sure that the discounted price for an applicable
3 drug under this section is applied before any
4 coverage or financial assistance under other
5 health benefit plans or programs that provide
6 coverage or financial assistance for the purchase
7 or provision of prescription drug coverage on be-
8 half of applicable beneficiaries as specified by the
9 Secretary; and
10 ‘‘(D) providing a reasonable dispute resolu-
11 tion mechanism to resolve disagreements between
12 manufacturers, prescription drug plans and
13 MA–PD plans, and the Secretary.
14 ‘‘(2) MONITORING COMPLIANCE.—The Secretary
15 shall monitor compliance by a manufacturer with the
16 terms of an agreement under this section.
17 ‘‘(3) COLLECTION OF DATA FROM PRESCRIPTION
18 DRUG PLANS AND MA–PD PLANS.—The Secretary may
19 collect appropriate data from prescription drug plans
20 and MA–PD plans in a timeframe that allows for
21 discounted prices to be provided for applicable drugs
22 under this section.
23 ‘‘(d) ADMINISTRATION.—
24 ‘‘(1) IN GENERAL.—Subject to paragraph (2), the
25 Secretary shall provide for the implementation of this
† HR 5376 EAS
176
1 section, including the performance of the duties de-
2 scribed in subsection (c).
3 ‘‘(2) LIMITATION.—In providing for the imple-
4 mentation of this section, the Secretary shall not re-
5 ceive or distribute any funds of a manufacturer under
6 the program.
7 ‘‘(e) CIVIL MONEY PENALTY.—
8 ‘‘(1) IN GENERAL.—A manufacturer that fails to
9 provide discounted prices for applicable drugs of the
10 manufacturer dispensed to applicable beneficiaries in
11 accordance with an agreement in effect under this sec-
12 tion shall be subject to a civil money penalty for each
13 such failure in an amount the Secretary determines
14 is equal to the sum of—
15 ‘‘(A) the amount that the manufacturer
16 would have paid with respect to such discounts
17 under the agreement, which will then be used to
18 pay the discounts which the manufacturer had
19 failed to provide; and
20 ‘‘(B) 25 percent of such amount.
21 ‘‘(2) APPLICATION.—The provisions of section
22 1128A (other than subsections (a) and (b)) shall
23 apply to a civil money penalty under this subsection
24 in the same manner as such provisions apply to a
25 penalty or proceeding under section 1128A(a).
† HR 5376 EAS
177
1 ‘‘(f) CLARIFICATION REGARDING AVAILABILITY OF
2 OTHER COVERED PART D DRUGS.—Nothing in this section
3 shall prevent an applicable beneficiary from purchasing a
4 covered part D drug that is not an applicable drug (includ-
5 ing a generic drug or a drug that is not on the formulary
6 of the prescription drug plan or MA–PD plan that the ap-
7 plicable beneficiary is enrolled in).
8 ‘‘(g) DEFINITIONS.—In this section:
9 ‘‘(1) APPLICABLE BENEFICIARY.—The term ‘ap-
10 plicable beneficiary’ means an individual who, on the
11 date of dispensing a covered part D drug—
12 ‘‘(A) is enrolled in a prescription drug plan
13 or an MA–PD plan;
14 ‘‘(B) is not enrolled in a qualified retiree
15 prescription drug plan; and
16 ‘‘(C) has incurred costs, as determined in
17 accordance with section 1860D–2(b)(4)(C), for
18 covered part D drugs in the year that exceed the
19 annual deductible specified in section 1860D–
20 2(b)(1).
21 ‘‘(2) APPLICABLE DRUG.—The term ‘applicable
22 drug’, with respect to an applicable beneficiary—
23 ‘‘(A) means a covered part D drug—
24 ‘‘(i) approved under a new drug appli-
25 cation under section 505(c) of the Federal
† HR 5376 EAS
178
1 Food, Drug, and Cosmetic Act or, in the
2 case of a biologic product, licensed under
3 section 351 of the Public Health Service
4 Act; and
5 ‘‘(ii)(I) if the PDP sponsor of the pre-
6 scription drug plan or the MA organization
7 offering the MA–PD plan uses a formulary,
8 which is on the formulary of the prescrip-
9 tion drug plan or MA–PD plan that the ap-
10 plicable beneficiary is enrolled in;
11 ‘‘(II) if the PDP sponsor of the pre-
12 scription drug plan or the MA organization
13 offering the MA–PD plan does not use a for-
14 mulary, for which benefits are available
15 under the prescription drug plan or MA–
16 PD plan that the applicable beneficiary is
17 enrolled in; or
18 ‘‘(III) is provided through an exception
19 or appeal; and
20 ‘‘(B) does not include a selected drug (as re-
21 ferred to under section 1192(c)) during a price
22 applicability period (as defined in section
23 1191(b)(2)) with respect to such drug.
† HR 5376 EAS
179
1 ‘‘(3) APPLICABLE NUMBER OF CALENDAR
2 DAYS.—The term ‘applicable number of calendar
3 days’ means—
4 ‘‘(A) with respect to claims for reimburse-
5 ment submitted electronically, 14 days; and
6 ‘‘(B) with respect to claims for reimburse-
7 ment submitted otherwise, 30 days.
8 ‘‘(4) DISCOUNTED PRICE.—
9 ‘‘(A) IN GENERAL.—The term ‘discounted
10 price’ means, subject to subparagraphs (B) and
11 (C), with respect to an applicable drug of a
12 manufacturer dispensed during a year to an ap-
13 plicable beneficiary—
14 ‘‘(i) who has not incurred costs, as de-
15 termined in accordance with section
16 1860D–2(b)(4)(C), for covered part D drugs
17 in the year that are equal to or exceed the
18 annual out-of-pocket threshold specified in
19 section 1860D–2(b)(4)(B)(i) for the year, 90
20 percent of the negotiated price of such drug;
21 and
22 ‘‘(ii) who has incurred such costs, as so
23 determined, in the year that are equal to or
24 exceed such threshold for the year, 80 per-
25 cent of the negotiated price of such drug.
† HR 5376 EAS
180
1 ‘‘(B) PHASE-IN FOR CERTAIN DRUGS DIS-
2 PENSED TO LIS BENEFICIARIES.—
3 ‘‘(i) IN GENERAL.—In the case of an
4 applicable drug of a specified manufacturer
5 (as defined in clause (ii)) that is marketed
6 as of the date of enactment of this subpara-
7 graph and dispensed for an applicable bene-
8 ficiary who is a subsidy eligible individual
9 (as defined in section 1860D–14(a)(3)), the
10 term ‘discounted price’ means the specified
11 LIS percent (as defined in clause (iii)) of
12 the negotiated price of the applicable drug
13 of the manufacturer.
14 ‘‘(ii) SPECIFIED MANUFACTURER.—
15 ‘‘(I) IN GENERAL.—In this sub-
16 paragraph, subject to subclause (II),
17 the term ‘specified manufacturer’
18 means a manufacturer of an applicable
19 drug for which, in 2021—
20 ‘‘(aa) the manufacturer had
21 a coverage gap discount agree-
22 ment under section 1860D–14A;
23 ‘‘(bb) the total expenditures
24 for all of the specified drugs of the
25 manufacturer covered by such
† HR 5376 EAS
181
1 agreement or agreements for such
2 year and covered under this part
3 during such year represented less
4 than 1.0 percent of the total ex-
5 penditures under this part for all
6 covered Part D drugs during such
7 year; and
8 ‘‘(cc) the total expenditures
9 for all of the specified drugs of the
10 manufacturer that are single
11 source drugs and biological prod-
12 ucts for which payment may be
13 made under part B during such
14 year represented less than 1.0 per-
15 cent of the total expenditures
16 under part B for all drugs or bio-
17 logical products for which pay-
18 ment may be made under such
19 part during such year.
20 ‘‘(II) SPECIFIED DRUGS.—
21 ‘‘(aa) IN GENERAL.—For
22 purposes of this clause, the term
23 ‘specified drug’ means, with re-
24 spect to a specified manufacturer,
25 for 2021, an applicable drug that
† HR 5376 EAS
182
1 is produced, prepared, propa-
2 gated, compounded, converted, or
3 processed by the manufacturer.
4 ‘‘(bb) AGGREGATION RULE.—
5 All persons treated as a single em-
6 ployer under subsection (a) or (b)
7 of section 52 of the Internal Rev-
8 enue Code of 1986 shall be treated
9 as one manufacturer for purposes
10 of this subparagraph. For pur-
11 poses of making a determination
12 pursuant to the previous sentence,
13 an agreement under this section
14 shall require that a manufacturer
15 provide and attest to such infor-
16 mation as specified by the Sec-
17 retary as necessary.
18 ‘‘(III) LIMITATION.—The term
19 ‘specified manufacturer’ shall not in-
20 clude a manufacturer described in sub-
21 clause (I) if such manufacturer is ac-
22 quired after 2021 by another manufac-
23 turer that is not a specified manufac-
24 turer, effective at the beginning of the
25 plan year immediately following such
† HR 5376 EAS
183
1 acquisition or, in the case of an acqui-
2 sition before 2025, effective January 1,
3 2025.
4 ‘‘(iii) SPECIFIED LIS PERCENT.—In
5 this subparagraph, the ‘specified LIS per-
6 cent’ means, with respect to a year—
7 ‘‘(I) for an applicable drug dis-
8 pensed for an applicable beneficiary
9 described in clause (i) who has not in-
10 curred costs, as determined in accord-
11 ance with section 1860D–2(b)(4)(C),
12 for covered part D drugs in the year
13 that are equal to or exceed the annual
14 out-of-pocket threshold specified in sec-
15 tion 1860D–2(b)(4)(B)(i) for the
16 year—
17 ‘‘(aa) for 2025, 99 percent;
18 ‘‘(bb) for 2026, 98 percent;
19 ‘‘(cc) for 2027, 95 percent;
20 ‘‘(dd) for 2028, 92 percent;
21 and
22 ‘‘(ee) for 2029 and each sub-
23 sequent year, 90 percent; and
24 ‘‘(II) for an applicable drug dis-
25 pensed for an applicable beneficiary
† HR 5376 EAS
184
1 described in clause (i) who has in-
2 curred costs, as determined in accord-
3 ance with section 1860D–2(b)(4)(C),
4 for covered part D drugs in the year
5 that are equal to or exceed the annual
6 out-of-pocket threshold specified in sec-
7 tion 1860D–2(b)(4)(B)(i) for the
8 year—
9 ‘‘(aa) for 2025, 99 percent;
10 ‘‘(bb) for 2026, 98 percent;
11 ‘‘(cc) for 2027, 95 percent;
12 ‘‘(dd) for 2028, 92 percent;
13 ‘‘(ee) for 2029, 90 percent;
14 ‘‘(ff) for 2030, 85 percent;
15 and
16 ‘‘(gg) for 2031 and each sub-
17 sequent year, 80 percent.
18 ‘‘(C) PHASE-IN FOR SPECIFIED SMALL MAN-
19 UFACTURERS.—
20 ‘‘(i) IN GENERAL.—In the case of an
21 applicable drug of a specified small manu-
22 facturer (as defined in clause (ii)) that is
23 marketed as of the date of enactment of this
24 subparagraph and dispensed for an appli-
25 cable beneficiary, the term ‘discounted price’
† HR 5376 EAS
185
1 means the specified small manufacturer per-
2 cent (as defined in clause (iii)) of the nego-
3 tiated price of the applicable drug of the
4 manufacturer.
5 ‘‘(ii) SPECIFIED SMALL MANUFAC-
6 TURER.—
7 ‘‘(I) IN GENERAL.—In this sub-
8 paragraph, subject to subclause (III),
9 the term ‘specified small manufacturer’
10 means a manufacturer of an applicable
11 drug for which, in 2021—
12 ‘‘(aa) the manufacturer is a
13 specified manufacturer (as defined
14 in subparagraph (B)(ii)); and
15 ‘‘(bb) the total expenditures
16 under part D for any one of the
17 specified small manufacturer
18 drugs of the manufacturer that
19 are covered by the agreement or
20 agreements under section 1860D–
21 14A of such manufacturer for such
22 year and covered under this part
23 during such year are equal to or
24 more than 80 percent of the total
25 expenditures under this part for
† HR 5376 EAS
186
1 all specified small manufacturer
2 drugs of the manufacturer that
3 are covered by such agreement or
4 agreements for such year and cov-
5 ered under this part during such
6 year.
7 ‘‘(II) SPECIFIED SMALL MANUFAC-
8 TURER DRUGS.—
9 ‘‘(aa) IN GENERAL.—For
10 purposes of this clause, the term
11 ‘specified small manufacturer
12 drugs’ means, with respect to a
13 specified small manufacturer, for
14 2021, an applicable drug that is
15 produced, prepared, propagated,
16 compounded, converted, or proc-
17 essed by the manufacturer.
18 ‘‘(bb) AGGREGATION RULE.—
19 All persons treated as a single em-
20 ployer under subsection (a) or (b)
21 of section 52 of the Internal Rev-
22 enue Code of 1986 shall be treated
23 as one manufacturer for purposes
24 of this subparagraph. For pur-
25 poses of making a determination
† HR 5376 EAS
187
1 pursuant to the previous sentence,
2 an agreement under this section
3 shall require that a manufacturer
4 provide and attest to such infor-
5 mation as specified by the Sec-
6 retary as necessary.
7 ‘‘(III) LIMITATION.—The term
8 ‘specified small manufacturer’ shall not
9 include a manufacturer described in
10 subclause (I) if such manufacturer is
11 acquired after 2021 by another manu-
12 facturer that is not a specified small
13 manufacturer, effective at the begin-
14 ning of the plan year immediately fol-
15 lowing such acquisition or, in the case
16 of an acquisition before 2025, effective
17 January 1, 2025.
18 ‘‘(iii) SPECIFIED SMALL MANUFAC-
19 TURER PERCENT.—In this subparagraph,
20 the term ‘specified small manufacturer per-
21 cent’ means, with respect to a year—
22 ‘‘(I) for an applicable drug dis-
23 pensed for an applicable beneficiary
24 who has not incurred costs, as deter-
25 mined in accordance with section
† HR 5376 EAS
188
1 1860D–2(b)(4)(C), for covered part D
2 drugs in the year that are equal to or
3 exceed the annual out-of-pocket thresh-
4 old specified in section 1860D–
5 2(b)(4)(B)(i) for the year—
6 ‘‘(aa) for 2025, 99 percent;
7 ‘‘(bb) for 2026, 98 percent;
8 ‘‘(cc) for 2027, 95 percent;
9 ‘‘(dd) for 2028, 92 percent;
10 and
11 ‘‘(ee) for 2029 and each sub-
12 sequent year, 90 percent; and
13 ‘‘(II) for an applicable drug dis-
14 pensed for an applicable beneficiary
15 who has incurred costs, as determined
16 in accordance with section 1860D–
17 2(b)(4)(C), for covered part D drugs in
18 the year that are equal to or exceed the
19 annual out-of-pocket threshold specified
20 in section 1860D–2(b)(4)(B)(i) for the
21 year—
22 ‘‘(aa) for 2025, 99 percent;
23 ‘‘(bb) for 2026, 98 percent;
24 ‘‘(cc) for 2027, 95 percent;
25 ‘‘(dd) for 2028, 92 percent;
† HR 5376 EAS
189
1 ‘‘(ee) for 2029, 90 percent;
2 ‘‘(ff) for 2030, 85 percent;
3 and
4 ‘‘(gg) for 2031 and each sub-
5 sequent year, 80 percent.
6 ‘‘(D) TOTAL EXPENDITURES.—For purposes
7 of this paragraph, the term ‘total expenditures’
8 includes, in the case of expenditures with respect
9 to part D, the total gross covered prescription
10 drug costs as defined in section 1860D–15(b)(3).
11 The term ‘total expenditures’ excludes, in the
12 case of expenditures with respect to part B, ex-
13 penditures for a drug or biological that are bun-
14 dled or packaged into the payment for another
15 service.
16 ‘‘(E) SPECIAL CASE FOR CERTAIN
17 CLAIMS.—
18 ‘‘(i) CLAIMS SPANNING DEDUCTIBLE.—
19 In the case where the entire amount of the
20 negotiated price of an individual claim for
21 an applicable drug with respect to an ap-
22 plicable beneficiary does not fall above the
23 annual deductible specified in section
24 1860D–2(b)(1) for the year, the manufac-
25 turer of the applicable drug shall provide
† HR 5376 EAS
190
1 the discounted price under this section on
2 only the portion of the negotiated price of
3 the applicable drug that falls above such an-
4 nual deductible.
5 ‘‘(ii) CLAIMS SPANNING OUT-OF-POCK-
6 ET THRESHOLD.—In the case where the en-
7 tire amount of the negotiated price of an in-
8 dividual claim for an applicable drug with
9 respect to an applicable beneficiary does not
10 fall entirely below or entirely above the an-
11 nual out-of-pocket threshold specified in sec-
12 tion 1860D–2(b)(4)(B)(i) for the year, the
13 manufacturer of the applicable drug shall
14 provide the discounted price—
15 ‘‘(I) in accordance with subpara-
16 graph (A)(i) on the portion of the ne-
17 gotiated price of the applicable drug
18 that falls below such threshold; and
19 ‘‘(II) in accordance with subpara-
20 graph (A)(ii) on the portion of such
21 price of such drug that falls at or
22 above such threshold.
23 ‘‘(5) MANUFACTURER.—The term ‘manufacturer’
24 means any entity which is engaged in the production,
25 preparation, propagation, compounding, conversion,
† HR 5376 EAS
191
1 or processing of prescription drug products, either di-
2 rectly or indirectly by extraction from substances of
3 natural origin, or independently by means of chem-
4 ical synthesis, or by a combination of extraction and
5 chemical synthesis. Such term does not include a
6 wholesale distributor of drugs or a retail pharmacy li-
7 censed under State law.
8 ‘‘(6) NEGOTIATED PRICE.—The term ‘negotiated
9 price’ has the meaning given such term for purposes
10 of section 1860D–2(d)(1)(B), and, with respect to an
11 applicable drug, such negotiated price shall include
12 any dispensing fee and, if applicable, any vaccine ad-
13 ministration fee for the applicable drug.
14 ‘‘(7) QUALIFIED RETIREE PRESCRIPTION DRUG
15 PLAN.—The term ‘qualified retiree prescription drug
16 plan’ has the meaning given such term in section
17 1860D–22(a)(2).
18 ‘‘SEC. 1860D–14D. SELECTED DRUG SUBSIDY PROGRAM.
19 ‘‘With respect to covered part D drugs that would be
20 applicable drugs (as defined in section 1860D–14C(g)(2))
21 but for the application of subparagraph (B) of such section,
22 the Secretary shall provide a process whereby, in the case
23 of an applicable beneficiary (as defined in section 1860D–
24 14C(g)(1)) who, with respect to a year, is enrolled in a pre-
25 scription drug plan or is enrolled in an MA–PD plan, has
† HR 5376 EAS
192
1 not incurred costs that are equal to or exceed the annual
2 out-of-pocket threshold specified in section 1860D–
3 2(b)(4)(B)(i), and is dispensed such a drug, the Secretary
4 (periodically and on a timely basis) provides the PDP
5 sponsor or the MA organization offering the plan, a subsidy
6 with respect to such drug that is equal to 10 percent of the
7 negotiated price (as defined in section 1860D–14C(g)(6))
8 of such drug.’’.
9 (2) SUNSET OF MEDICARE COVERAGE GAP DIS-
10 COUNT PROGRAM.—Section 1860D–14A of the Social
11 Security Act (42 U.S.C. 1395w–114a) is amended—
12 (A) in subsection (a), in the first sentence,
13 by striking ‘‘The Secretary’’ and inserting ‘‘Sub-
14 ject to subsection (h), the Secretary’’; and
15 (B) by adding at the end the following new
16 subsection:
17 ‘‘(h) SUNSET OF PROGRAM.—
18 ‘‘(1) IN GENERAL.—The program shall not apply
19 with respect to applicable drugs dispensed on or after
20 January 1, 2025, and, subject to paragraph (2),
21 agreements under this section shall be terminated as
22 of such date.
23 ‘‘(2) CONTINUED APPLICATION FOR APPLICABLE
24 DRUGS DISPENSED PRIOR TO SUNSET.—The provi-
25 sions of this section (including all responsibilities and
† HR 5376 EAS
193
1 duties) shall continue to apply on and after January
2 1, 2025, with respect to applicable drugs dispensed
3 prior to such date.’’.
4 (3) SELECTED DRUG SUBSIDY PAYMENTS FROM
5 MEDICARE PRESCRIPTION DRUG ACCOUNT.—Section
6 1860D–16(b)(1) of the Social Security Act (42 U.S.C.
7 1395w–116(b)(1)) is amended—
8 (A) in subparagraph (C), by striking ‘‘and’’
9 at the end;
10 (B) in subparagraph (D), by striking the
11 period at the end and inserting ‘‘; and’’; and
12 (C) by adding at the end the following new
13 subparagraph:
14 ‘‘(E) payments under section 1860D–14D
15 (relating to selected drug subsidy payments).’’.
16 (d) MEDICARE PART D PREMIUM STABILIZATION.—
17 (1) 2024 THROUGH 2029.—Section 1860D–13 of
18 the Social Security Act (42 U.S.C. 1395w–113) is
19 amended—
20 (A) in subsection (a)—
21 (i) in paragraph (1)(A), by inserting
22 ‘‘or (8) (as applicable)’’ after ‘‘paragraph
23 (2)’’;
24 (ii) in paragraph (2), in the matter
25 preceding subparagraph (A), by striking
† HR 5376 EAS
194
1 ‘‘The base’’ and inserting ‘‘Subject to para-
2 graph (8), the base’’;
3 (iii) in paragraph (7)—
4 (I) in subparagraph (B)(ii), by
5 inserting ‘‘or (8) (as applicable)’’ after
6 ‘‘paragraph (2)’’; and
7 (II) in subparagraph (E)(i), by
8 inserting ‘‘or (8) (as applicable)’’ after
9 ‘‘paragraph (2)’’; and
10 (iv) by adding at the end the following
11 new paragraph:
12 ‘‘(8) PREMIUM STABILIZATION.—
13 ‘‘(A) IN GENERAL.—The base beneficiary
14 premium under this paragraph for a prescrip-
15 tion drug plan for a month in 2024 through
16 2029 shall be computed as follows:
17 ‘‘(i) 2024.—The base beneficiary pre-
18 mium for a month in 2024 shall be equal
19 to the lesser of—
20 ‘‘(I) the base beneficiary premium
21 computed under paragraph (2) for a
22 month in 2023 increased by 6 percent;
23 or
24 ‘‘(II) the base beneficiary pre-
25 mium computed under paragraph (2)
† HR 5376 EAS
195
1 for a month in 2024 that would have
2 applied if this paragraph had not been
3 enacted.
4 ‘‘(ii) 2025.—The base beneficiary pre-
5 mium for a month in 2025 shall be equal
6 to the lesser of—
7 ‘‘(I) the base beneficiary premium
8 computed under clause (i) for a month
9 in 2024 increased by 6 percent; or
10 ‘‘(II) the base beneficiary pre-
11 mium computed under paragraph (2)
12 for a month in 2025 that would have
13 applied if this paragraph had not been
14 enacted.
15 ‘‘(iii) 2026.—The base beneficiary pre-
16 mium for a month in 2026 shall be equal
17 to the lesser of—
18 ‘‘(I) the base beneficiary premium
19 computed under clause (ii) for a month
20 in 2025 increased by 6 percent; or
21 ‘‘(II) the base beneficiary pre-
22 mium computed under paragraph (2)
23 for a month in 2026 that would have
24 applied if this paragraph had not been
25 enacted.
† HR 5376 EAS
196
1 ‘‘(iv) 2027.—The base beneficiary pre-
2 mium for a month in 2027 shall be equal
3 to the lesser of—
4 ‘‘(I) the base beneficiary premium
5 computed under clause (iii) for a
6 month in 2026 increased by 6 percent;
7 or
8 ‘‘(II) the base beneficiary pre-
9 mium computed under paragraph (2)
10 for a month in 2027 that would have
11 applied if this paragraph had not been
12 enacted.
13 ‘‘(v) 2028.—The base beneficiary pre-
14 mium for a month in 2028 shall be equal
15 to the lesser of—
16 ‘‘(I) the base beneficiary premium
17 computed under clause (iv) for a
18 month in 2027 increased by 6 percent;
19 or
20 ‘‘(II) the base beneficiary pre-
21 mium computed under paragraph (2)
22 for a month in 2028 that would have
23 applied if this paragraph had not been
24 enacted.
† HR 5376 EAS
197
1 ‘‘(vi) 2029.—The base beneficiary pre-
2 mium for a month in 2029 shall be equal
3 to the lesser of—
4 ‘‘(I) the base beneficiary premium
5 computed under clause (v) for a month
6 in 2028 increased by 6 percent; or
7 ‘‘(II) the base beneficiary pre-
8 mium computed under paragraph (2)
9 for a month in 2029 that would have
10 applied if this paragraph had not been
11 enacted.
12 ‘‘(B) CLARIFICATION REGARDING 2030 AND
13 SUBSEQUENT YEARS.—The base beneficiary pre-
14 mium for a month in 2030 or a subsequent year
15 shall be computed under paragraph (2) without
16 regard to this paragraph.’’; and
17 (B) in subsection (b)(3)(A)(ii), by striking
18 ‘‘subsection (a)(2)’’ and inserting ‘‘paragraph
19 (2) or (8) of subsection (a) (as applicable)’’.
20 (2) ADJUSTMENT TO BENEFICIARY PREMIUM
21 PERCENTAGE FOR 2030 AND SUBSEQUENT YEARS.—
22 Section 1860D–13(a) of the Social Security Act (42
23 U.S.C. 1395w–113(a)), as amended by paragraph (1),
24 is amended—
† HR 5376 EAS
198
1 (A) in paragraph (3)(A), by inserting ‘‘(or,
2 for 2030 and each subsequent year, the percent
3 specified under paragraph (9))’’ after ‘‘25.5 per-
4 cent’’; and
5 (B) by adding at the end the following new
6 paragraph:
7 ‘‘(9) PERCENT SPECIFIED.—
8 ‘‘(A) IN GENERAL.—Subject to subpara-
9 graph (B), for purposes of paragraph (3)(A), the
10 percent specified under this paragraph for 2030
11 and each subsequent year is the percent that the
12 Secretary determines is necessary to ensure that
13 the base beneficiary premium computed under
14 paragraph (2) for a month in 2030 is equal to
15 the lesser of—
16 ‘‘(i) the base beneficiary premium com-
17 puted under paragraph (8)(A)(vi) for a
18 month in 2029 increased by 6 percent; or
19 ‘‘(ii) the base beneficiary premium
20 computed under paragraph (2) for a month
21 in 2030 that would have applied if this
22 paragraph had not been enacted.
23 ‘‘(B) FLOOR.—The percent specified under
24 subparagraph (A) may not be less than 20 per-
25 cent.’’.
† HR 5376 EAS
199
1 (3) CONFORMING AMENDMENTS.—
2 (A) Section 1854(b)(2)(B) of the Social Se-
3 curity Act 42 U.S.C. 1395w–24(b)(2)(B)) is
4 amended by striking ‘‘section 1860D–13(a)(2)’’
5 and inserting ‘‘paragraph (2) or (8) (as applica-
6 ble) of section 1860D–13(a)’’.
7 (B) Section 1860D–11(g)(6) of the Social
8 Security Act (42 U.S.C. 1395w–111(g)(6)) is
9 amended by inserting ‘‘(or, for 2030 and each
10 subsequent year, the percent specified under sec-
11 tion 1860D–13(a)(9))’’ after ‘‘25.5 percent’’.
12 (C) Section 1860D–13(a)(7)(B)(i) of the So-
13 cial Security Act (42 U.S.C. 1395w–
14 113(a)(7)(B)(i)) is amended—
15 (i) in subclause (I), by inserting ‘‘(or,
16 for 2030 and each subsequent year, the per-
17 cent specified under paragraph (9))’’ after
18 ‘‘25.5 percent’’; and
19 (ii) in subclause (II), by inserting
20 ‘‘(or, for 2030 and each subsequent year, the
21 percent specified under paragraph (9))’’
22 after ‘‘25.5 percent’’.
23 (D) Section 1860D–15(a) of the Social Se-
24 curity Act (42 U.S.C. 1395w–115(a)) is amend-
25 ed—
† HR 5376 EAS
200
1 (i) in the matter preceding paragraph
2 (1), by inserting ‘‘(or, for each of 2024
3 through 2029, the percent applicable as a
4 result of the application of section 1860D–
5 13(a)(8), or, for 2030 and each subsequent
6 year, 100 percent minus the percent speci-
7 fied under section 1860D–13(a)(9))’’ after
8 ‘‘74.5 percent’’; and
9 (ii) in paragraph (1)(B), by striking
10 ‘‘paragraph (2) of section 1860D–13(a)’’
11 and inserting ‘‘paragraph (2) or (8) of sec-
12 tion 1860D–13(a) (as applicable)’’.
13 (e) CONFORMING AMENDMENTS.—
14 (1) Section 1860D–2 of the Social Security Act
15 (42 U.S.C. 1395w–102) is amended—
16 (A) in subsection (a)(2)(A)(i)(I), by striking
17 ‘‘, or an increase in the initial’’ and inserting
18 ‘‘or, for a year preceding 2025, an increase in
19 the initial’’;
20 (B) in subsection (c)(1)(C)—
21 (i) in the subparagraph heading, by
22 striking ‘‘AT INITIAL COVERAGE LIMIT’’; and
23 (ii) by inserting ‘‘for a year preceding
24 2025 or the annual out-of-pocket threshold
25 specified in subsection (b)(4)(B) for the year
† HR 5376 EAS
201
1 for 2025 and each subsequent year’’ after
2 ‘‘subsection (b)(3) for the year’’ each place
3 it appears; and
4 (C) in subsection (d)(1)(A), by striking ‘‘or
5 an initial’’ and inserting ‘‘or, for a year pre-
6 ceding 2025, an initial’’.
7 (2) Section 1860D–4(a)(4)(B)(i) of the Social
8 Security Act (42 U.S.C. 1395w–104(a)(4)(B)(i)) is
9 amended by striking ‘‘the initial’’ and inserting ‘‘for
10 a year preceding 2025, the initial’’.
11 (3) Section 1860D–14(a) of the Social Security
12 Act (42 U.S.C. 1395w–114(a)) is amended—
13 (A) in paragraph (1)—
14 (i) in subparagraph (C), by striking
15 ‘‘The continuation’’ and inserting ‘‘For a
16 year preceding 2025, the continuation’’;
17 (ii) in subparagraph (D)(iii), by strik-
18 ing ‘‘1860D–2(b)(4)(A)(i)(I)’’ and inserting
19 ‘‘1860D–2(b)(4)(A)(i)(I)(aa)’’; and
20 (iii) in subparagraph (E), by striking
21 ‘‘The elimination’’ and inserting ‘‘For a
22 year preceding 2024, the elimination’’; and
23 (B) in paragraph (2)(E), by striking
24 ‘‘1860D–2(b)(4)(A)(i)(I)’’ and inserting
25 ‘‘1860D–2(b)(4)(A)(i)(I)(aa)’’.
† HR 5376 EAS
202
1 (4) Section 1860D–21(d)(7) of the Social Secu-
2 rity Act (42 U.S.C. 1395w–131(d)(7)) is amended by
3 striking ‘‘section 1860D–2(b)(4)(B)(i)’’ and inserting
4 ‘‘section 1860D–2(b)(4)(C)(i)’’.
5 (5) Section 1860D–22(a)(2)(A) of the Social Se-
6 curity Act (42 U.S.C. 1395w–132(a)(2)(A)) is amend-
7 ed—
8 (A) by striking ‘‘the value of any discount’’
9 and inserting the following: ‘‘the value of—
10 ‘‘(i) for years prior to 2025, any dis-
11 count’’;
12 (B) in clause (i), as inserted by subpara-
13 graph (A) of this paragraph, by striking the pe-
14 riod at the end and inserting ‘‘; and’’; and
15 (C) by adding at the end the following new
16 clause:
17 ‘‘(ii) for 2025 and each subsequent
18 year, any discount provided pursuant to
19 section 1860D–14C.’’.
20 (6) Section 1860D–41(a)(6) of the Social Secu-
21 rity Act (42 U.S.C. 1395w–151(a)(6)) is amended—
22 (A) by inserting ‘‘for a year before 2025’’
23 after ‘‘1860D–2(b)(3)’’; and
24 (B) by inserting ‘‘for such year’’ before the
25 period.
† HR 5376 EAS
203
1 (7) Section 1860D–43 of the Social Security Act
2 (42 U.S.C. 1395w–153) is amended—
3 (A) in subsection (a)—
4 (i) by striking paragraph (1) and in-
5 serting the following:
6 ‘‘(1) participate in—
7 ‘‘(A) for 2011 through 2024, the Medicare
8 coverage gap discount program under section
9 1860D–14A; and
10 ‘‘(B) for 2025 and each subsequent year, the
11 manufacturer discount program under section
12 1860D–14C;’’;
13 (ii) by striking paragraph (2) and in-
14 serting the following:
15 ‘‘(2) have entered into and have in effect—
16 ‘‘(A) for 2011 through 2024, an agreement
17 described in subsection (b) of section 1860D–14A
18 with the Secretary; and
19 ‘‘(B) for 2025 and each subsequent year, an
20 agreement described in subsection (b) of section
21 1860D–14C with the Secretary; and’’; and
22 (iii) in paragraph (3), by striking
23 ‘‘such section’’ and inserting ‘‘section
24 1860D–14A’’; and
† HR 5376 EAS
204
1 (B) by striking subsection (b) and inserting
2 the following:
3 ‘‘(b) EFFECTIVE DATE.—Paragraphs (1)(A), (2)(A),
4 and (3) of subsection (a) shall apply to covered part D
5 drugs dispensed under this part on or after January 1,
6 2011, and before January 1, 2025, and paragraphs (1)(B)
7 and (2)(B) of such subsection shall apply to covered part
8 D drugs dispensed under this part on or after January 1,
9 2025.’’.
10 (8) Section 1927 of the Social Security Act (42
11 U.S.C. 1396r–8) is amended—
12 (A) in subsection (c)(1)(C)(i)(VI), by insert-
13 ing before the period at the end the following: ‘‘or
14 under the manufacturer discount program under
15 section 1860D–14C’’; and
16 (B) in subsection (k)(1)(B)(i)(V), by insert-
17 ing before the period at the end the following: ‘‘or
18 under section 1860D–14C’’.
19 (f) IMPLEMENTATION FOR 2024 THROUGH 2026.—The
20 Secretary shall implement this section, including the
21 amendments made by this section, for 2024, 2025, and 2026
22 by program instruction or other forms of program guidance.
23 (g) FUNDING.—In addition to amounts otherwise
24 available, there are appropriated to the Centers for Medi-
25 care & Medicaid Services, out of any money in the Treasury
† HR 5376 EAS
205
1 not otherwise appropriated, $341,000,000 for fiscal year
2 2022, including $20,000,000 and $65,000,000 to carry out
3 the provisions of, including the amendments made by, this
4 section in fiscal years 2022 and 2023, respectively, and
5 $32,000,000 to carry out the provisions of, including the
6 amendments made by, this section in each of fiscal years
7 2024 through 2031, to remain available until expended.
8 SEC. 11202. MAXIMUM MONTHLY CAP ON COST-SHARING
9 PAYMENTS UNDER PRESCRIPTION DRUG
10 PLANS AND MA–PD PLANS.
11 (a) IN GENERAL.—Section 1860D–2(b) of the Social
12 Security Act (42 U.S.C. 1395w–102(b)) is amended—
13 (1) in paragraph (2)—
14 (A) in subparagraph (A), by striking ‘‘and
15 (D)’’ and inserting ‘‘, (D), and (E)’’; and
16 (B) by adding at the end the following new
17 subparagraph:
18 ‘‘(E) MAXIMUM MONTHLY CAP ON COST-
19 SHARING PAYMENTS.—
20 ‘‘(i) IN GENERAL.—For plan years be-
21 ginning on or after January 1, 2025, each
22 PDP sponsor offering a prescription drug
23 plan and each MA organization offering an
24 MA–PD plan shall provide to any enrollee
25 of such plan, including an enrollee who is
† HR 5376 EAS
206
1 a subsidy eligible individual (as defined in
2 paragraph (3) of section 1860D–14(a)), the
3 option to elect with respect to a plan year
4 to pay cost-sharing under the plan in
5 monthly amounts that are capped in ac-
6 cordance with this subparagraph.
7 ‘‘(ii) DETERMINATION OF MAXIMUM
8 MONTHLY CAP.—For each month in the
9 plan year for which an enrollee in a pre-
10 scription drug plan or an MA–PD plan has
11 made an election pursuant to clause (i), the
12 PDP sponsor or MA organization shall de-
13 termine a maximum monthly cap (as de-
14 fined in clause (iv)) for such enrollee.
15 ‘‘(iii) BENEFICIARY MONTHLY PAY-
16 MENTS.—With respect to an enrollee who
17 has made an election pursuant to clause (i),
18 for each month described in clause (ii), the
19 PDP sponsor or MA organization shall bill
20 such enrollee an amount (not to exceed the
21 maximum monthly cap) for the out-of-pock-
22 et costs of such enrollee in such month.
23 ‘‘(iv) MAXIMUM MONTHLY CAP DE-
24 FINED.—In this subparagraph, the term
† HR 5376 EAS
207
1 ‘maximum monthly cap’ means, with re-
2 spect to an enrollee—
3 ‘‘(I) for the first month for which
4 the enrollee has made an election pur-
5 suant to clause (i), an amount deter-
6 mined by calculating—
7 ‘‘(aa) the annual out-of-pock-
8 et threshold specified in para-
9 graph (4)(B) minus the incurred
10 costs of the enrollee as described in
11 paragraph (4)(C); divided by
12 ‘‘(bb) the number of months
13 remaining in the plan year; and
14 ‘‘(II) for a subsequent month, an
15 amount determined by calculating—
16 ‘‘(aa) the sum of any re-
17 maining out-of-pocket costs owed
18 by the enrollee from a previous
19 month that have not yet been
20 billed to the enrollee and any ad-
21 ditional out-of-pocket costs in-
22 curred by the enrollee; divided by
23 ‘‘(bb) the number of months
24 remaining in the plan year.
† HR 5376 EAS
208
1 ‘‘(v) ADDITIONAL REQUIREMENTS.—
2 The following requirements shall apply with
3 respect to the option to make an election
4 pursuant to clause (i) under this subpara-
5 graph:
6 ‘‘(I) SECRETARIAL RESPONSIBIL-
7 ITIES.—The Secretary shall provide in-
8 formation to part D eligible individ-
9 uals on the option to make such elec-
10 tion through educational materials, in-
11 cluding through the notices provided
12 under section 1804(a).
13 ‘‘(II) TIMING OF ELECTION.—An
14 enrollee in a prescription drug plan or
15 an MA–PD plan may make such an
16 election—
17 ‘‘(aa) prior to the beginning
18 of the plan year; or
19 ‘‘(bb) in any month during
20 the plan year.
21 ‘‘(III) PDP SPONSOR AND MA OR-
22 GANIZATION RESPONSIBILITIES.—Each
23 PDP sponsor offering a prescription
24 drug plan or MA organization offering
25 an MA–PD plan—
† HR 5376 EAS
209
1 ‘‘(aa) may not limit the op-
2 tion for an enrollee to make such
3 an election to certain covered part
4 D drugs;
5 ‘‘(bb) shall, prior to the plan
6 year, notify prospective enrollees
7 of the option to make such an
8 election in promotional materials;
9 ‘‘(cc) shall include informa-
10 tion on such option in enrollee
11 educational materials;
12 ‘‘(dd) shall have in place a
13 mechanism to notify a pharmacy
14 during the plan year when an en-
15 rollee incurs out-of-pocket costs
16 with respect to covered part D
17 drugs that make it likely the en-
18 rollee may benefit from making
19 such an election;
20 ‘‘(ee) shall provide that a
21 pharmacy, after receiving a noti-
22 fication described in item (dd)
23 with respect to an enrollee, in-
24 forms the enrollee of such notifica-
25 tion;
† HR 5376 EAS
210
1 ‘‘(ff) shall ensure that such
2 an election by an enrollee has no
3 effect on the amount paid to phar-
4 macies (or the timing of such pay-
5 ments) with respect to covered
6 part D drugs dispensed to the en-
7 rollee; and
8 ‘‘(gg) shall have in place a fi-
9 nancial reconciliation process to
10 correct inaccuracies in payments
11 made by an enrollee under this
12 subparagraph with respect to cov-
13 ered part D drugs during the plan
14 year.
15 ‘‘(IV) FAILURE TO PAY AMOUNT
16 BILLED.—If an enrollee fails to pay
17 the amount billed for a month as re-
18 quired under this subparagraph—
19 ‘‘(aa) the election of the en-
20 rollee pursuant to clause (i) shall
21 be terminated and the enrollee
22 shall pay the cost-sharing other-
23 wise applicable for any covered
24 part D drugs subsequently dis-
25 pensed to the enrollee up to the
† HR 5376 EAS
211
1 annual out-of-pocket threshold
2 specified in paragraph (4)(B);
3 and
4 ‘‘(bb) the PDP sponsor or
5 MA organization may preclude
6 the enrollee from making an elec-
7 tion pursuant to clause (i) in a
8 subsequent plan year.
9 ‘‘(V) CLARIFICATION REGARDING
10 PAST DUE AMOUNTS.—Nothing in this
11 subparagraph shall be construed as
12 prohibiting a PDP sponsor or an MA
13 organization from billing an enrollee
14 for an amount owed under this sub-
15 paragraph.
16 ‘‘(VI) TREATMENT OF UNSETTLED
17 BALANCES.—Any unsettled balances
18 with respect to amounts owed under
19 this subparagraph shall be treated as
20 plan losses and the Secretary shall not
21 be liable for any such balances outside
22 of those assumed as losses estimated in
23 plan bids.’’; and
24 (2) in paragraph (4)—
† HR 5376 EAS
212
1 (A) in subparagraph (C), by striking ‘‘sub-
2 paragraph (E)’’ and inserting ‘‘subparagraph
3 (E) or subparagraph (F)’’; and
4 (B) by adding at the end the following new
5 subparagraph:
6 ‘‘(F) INCLUSION OF COSTS PAID UNDER
7 MAXIMUM MONTHLY CAP OPTION.—In applying
8 subparagraph (A), with respect to an enrollee
9 who has made an election pursuant to clause (i)
10 of paragraph (2)(E), costs shall be treated as in-
11 curred if such costs are paid by a PDP sponsor
12 or an MA organization under the option pro-
13 vided under such paragraph.’’.
14 (b) APPLICATION TO ALTERNATIVE PRESCRIPTION
15 DRUG COVERAGE.—Section 1860D–2(c) of the Social Secu-
16 rity Act (42 U.S.C. 1395w–102(c)) is amended by adding
17 at the end the following new paragraph:
18 ‘‘(4) SAME MAXIMUM MONTHLY CAP ON COST-
19 SHARING.—The maximum monthly cap on cost-shar-
20 ing payments shall apply to coverage with respect to
21 an enrollee who has made an election pursuant to
22 clause (i) of subsection (b)(2)(E) under the option
23 provided under such subsection.’’.
24 (c) IMPLEMENTATION FOR 2025.—The Secretary shall
25 implement this section, including the amendments made by
† HR 5376 EAS
213
1 this section, for 2025 by program instruction or other forms
2 of program guidance.
3 (d) FUNDING.—In addition to amounts otherwise
4 available, there are appropriated to the Centers for Medi-
5 care & Medicaid Services, out of any money in the Treasury
6 not otherwise appropriated, $10,000,000 for fiscal year
7 2023, to remain available until expended, to carry out the
8 provisions of, including the amendments made by, this sec-
9 tion.
10 PART 4—CONTINUED DELAY OF IMPLEMENTA-
11 TION OF PRESCRIPTION DRUG REBATE RULE
12 SEC. 11301. EXTENSION OF MORATORIUM ON IMPLEMENTA-
13 TION OF RULE RELATING TO ELIMINATING
14 THE ANTI-KICKBACK STATUTE SAFE HARBOR
15 PROTECTION FOR PRESCRIPTION DRUG RE-
16 BATES.
17 The Secretary of Health and Human Services shall
18 not, prior to January 1, 2032, implement, administer, or
19 enforce the provisions of the final rule published by the Of-
20 fice of the Inspector General of the Department of Health
21 and Human Services on November 30, 2020, and titled
22 ‘‘Fraud and Abuse; Removal of Safe Harbor Protection for
23 Rebates Involving Prescription Pharmaceuticals and Cre-
24 ation of New Safe Harbor Protection for Certain Point-of-
25 Sale Reductions in Price on Prescription Pharmaceuticals
† HR 5376 EAS
214
1 and Certain Pharmacy Benefit Manager Service Fees’’ (85
2 Fed. Reg. 76666).
3 PART 5—MISCELLANEOUS
4 SEC. 11401. COVERAGE OF ADULT VACCINES REC-
5 OMMENDED BY THE ADVISORY COMMITTEE
6 ON IMMUNIZATION PRACTICES UNDER MEDI-
7 CARE PART D.
8 (a) ENSURING TREATMENT OF COST-SHARING AND
9 DEDUCTIBLE IS CONSISTENT WITH TREATMENT OF VAC-
10 CINES UNDER MEDICARE PART B.—Section 1860D–2 of the
11 Social Security Act (42 U.S.C. 1395w–102), as amended
12 by sections 11201 and 11202, is amended—
13 (1) in subsection (b)—
14 (A) in paragraph (1)(A), by striking ‘‘The
15 coverage’’ and inserting ‘‘Subject to paragraph
16 (8), the coverage’’;
17 (B) in paragraph (2)—
18 (i) in subparagraph (A), by inserting
19 ‘‘and paragraph (8)’’ after ‘‘and (E)’’;
20 (ii) in subparagraph (C)(i), in the
21 matter preceding subclause (I), by striking
22 ‘‘paragraph (4)’’ and inserting ‘‘paragraphs
23 (4) and (8)’’; and
24 (iii) in subparagraph (D)(i), in the
25 matter preceding subclause (I), by striking
† HR 5376 EAS
215
1 ‘‘paragraph (4)’’ and inserting ‘‘paragraphs
2 (4) and (8)’’;
3 (C) in paragraph (3)(A), in the matter pre-
4 ceding clause (i), by striking ‘‘and (4)’’ and in-
5 serting ‘‘(4), and (8)’’;
6 (D) in paragraph (4)(A)(i), by striking
7 ‘‘The coverage’’ and inserting ‘‘Subject to para-
8 graph (8), the coverage’’; and
9 (E) by adding at the end the following new
10 paragraph:
11 ‘‘(8) TREATMENT OF COST-SHARING FOR ADULT
12 VACCINES RECOMMENDED BY THE ADVISORY COM-
13 MITTEE ON IMMUNIZATION PRACTICES CONSISTENT
14 WITH TREATMENT OF VACCINES UNDER PART B.—
15 ‘‘(A) IN GENERAL.—For plan years begin-
16 ning on or after January 1, 2023, with respect
17 to an adult vaccine recommended by the Advi-
18 sory Committee on Immunization Practices (as
19 defined in subparagraph (B))—
20 ‘‘(i) the deductible under paragraph
21 (1) shall not apply; and
22 ‘‘(ii) there shall be no coinsurance or
23 other cost-sharing under this part with re-
24 spect to such vaccine.
† HR 5376 EAS
216
1 ‘‘(B) ADULT VACCINES RECOMMENDED BY
2 THE ADVISORY COMMITTEE ON IMMUNIZATION
3 PRACTICES.—For purposes of this paragraph, the
4 term ‘adult vaccine recommended by the Advi-
5 sory Committee on Immunization Practices’
6 means a covered part D drug that is a vaccine
7 licensed under section 351 of the Public Health
8 Service Act for use by adult populations and ad-
9 ministered in accordance with recommendations
10 of the Advisory Committee on Immunization
11 Practices of the Centers for Disease Control and
12 Prevention.’’; and
13 (2) in subsection (c), by adding at the end the
14 following new paragraph:
15 ‘‘(5) TREATMENT OF COST-SHARING FOR ADULT
16 VACCINES RECOMMENDED BY THE ADVISORY COM-
17 MITTEE ON IMMUNIZATION PRACTICES.—The coverage
18 is in accordance with subsection (b)(8).’’.
19 (b) CONFORMING AMENDMENTS TO COST-SHARING FOR
20 LOW-INCOME INDIVIDUALS.—Section 1860D–14(a) of the
21 Social Security Act (42 U.S.C. 1395w–114(a)), as amended
22 by section 11201, is amended—
23 (1) in paragraph (1)(D), in each of clauses (ii)
24 and (iii), by striking ‘‘In the case’’ and inserting
25 ‘‘Subject to paragraph (6), in the case’’;
† HR 5376 EAS
217
1 (2) in paragraph (2)—
2 (A) in subparagraph (B), by striking ‘‘A re-
3 duction’’ and inserting ‘‘Subject to section
4 1860D–2(b)(8), a reduction’’;
5 (B) in subparagraph (D), by striking ‘‘The
6 substitution’’ and inserting ‘‘Subject to para-
7 graph (6), the substitution’’; and
8 (C) in subparagraph (E), by striking ‘‘sub-
9 section (c)’’ and inserting ‘‘paragraph (6) of this
10 subsection and subsection (c)’’; and
11 (3) by adding at the end the following new para-
12 graph:
13 ‘‘(6) NO APPLICATION OF COST-SHARING OR DE-
14 DUCTIBLE FOR ADULT VACCINES RECOMMENDED BY
15 THE ADVISORY COMMITTEE ON IMMUNIZATION PRAC-
16 TICES.—For plan years beginning on or after Janu-
17 ary 1, 2023, with respect to an adult vaccine rec-
18 ommended by the Advisory Committee on Immuniza-
19 tion Practices (as defined in section 1860D–
20 2(b)(8)(B))—
21 ‘‘(A) the deductible under section 1860D–
22 2(b)(1) shall not apply; and
23 ‘‘(B) there shall be no cost-sharing under
24 this section with respect to such vaccine.’’.
25 (c) TEMPORARY RETROSPECTIVE SUBSIDY.—
† HR 5376 EAS
218
1 (1) IN GENERAL.—Section 1860D–15 of the So-
2 cial Security Act (42 U.S.C. 1395w–115) is amended
3 by adding at the end the following new subsection:
4 ‘‘(h) TEMPORARY RETROSPECTIVE SUBSIDY FOR RE-
5 DUCTION IN COST-SHARING AND DEDUCTIBLE FOR ADULT
6 VACCINES RECOMMENDED BY THE ADVISORY COMMITTEE
7 ON IMMUNIZATION PRACTICES DURING 2023.—
8 ‘‘(1) IN GENERAL.—In addition to amounts oth-
9 erwise payable under this section to a PDP sponsor
10 of a prescription drug plan or an MA organization
11 offering an MA–PD plan, for plan year 2023, the
12 Secretary shall provide the PDP sponsor or MA orga-
13 nization offering the plan subsidies in an amount
14 equal to the aggregate reduction in cost-sharing and
15 deductible by reason of the application of section
16 1860D–2(b)(8) for individuals under the plan during
17 the year.
18 ‘‘(2) TIMING.—The Secretary shall provide a
19 subsidy under paragraph (1), as applicable, not later
20 than 18 months following the end of the applicable
21 plan year.’’.
22 (2) TREATMENT AS INCURRED COSTS.—Section
23 1860D–2(b)(4)(C)(iii)(I) of the Social Security Act
24 (42 U.S.C. 1395w–102(b)(4)(C)(iii)(I)), as amended
25 by section 11201(a)(3)(C), is amended—
† HR 5376 EAS
219
1 (A) in item (cc), by striking ‘‘or’’ at the
2 end; and
3 (B) by adding at the end the following new
4 item:
5 ‘‘(dd) under section 1860D–
6 15(h); or’’.
7 (d) RULE OF CONSTRUCTION.—Nothing in this section
8 shall be construed as limiting coverage under part D of title
9 XVIII of the Social Security Act for vaccines that are not
10 recommended by the Advisory Committee on Immunization
11 Practices.
12 (e) IMPLEMENTATION FOR 2023 THROUGH 2025.—The
13 Secretary shall implement this section, including the
14 amendments made by this section, for 2023, 2024, and
15 2025, by program instruction or other forms of program
16 guidance.
17 SEC. 11402. PAYMENT FOR BIOSIMILAR BIOLOGICAL PROD-
18 UCTS DURING INITIAL PERIOD.
19 Section 1847A(c)(4) of the Social Security Act (42
20 U.S.C. 1395w–3a(c)(4)) is amended—
21 (1) in each of subparagraphs (A) and (B), by re-
22 designating clauses (i) and (ii) as subclauses (I) and
23 (II), respectively, and moving such subclauses 2 ems
24 to the right;
† HR 5376 EAS
220
1 (2) by redesignating subparagraphs (A) and (B)
2 as clauses (i) and (ii) and moving such clauses 2 ems
3 to the right;
4 (3) by striking ‘‘UNAVAILABLE.—In the case’’
5 and inserting ‘‘UNAVAILABLE.—
6 ‘‘(A) IN GENERAL.—Subject to subpara-
7 graph (B), in the case’’; and
8 (4) by adding at the end the following new sub-
9 paragraph:
10 ‘‘(B) LIMITATION ON PAYMENT AMOUNT FOR
11 BIOSIMILAR BIOLOGICAL PRODUCTS DURING INI-
12 TIAL PERIOD.—In the case of a biosimilar bio-
13 logical product furnished on or after July 1,
14 2024, during the initial period described in sub-
15 paragraph (A) with respect to the biosimilar bio-
16 logical product, the amount payable under this
17 section for the biosimilar biological product is
18 the lesser of the following:
19 ‘‘(i) The amount determined under
20 clause (ii) of such subparagraph for the bio-
21 similar biological product.
22 ‘‘(ii) The amount determined under
23 subsection (b)(1)(B) for the reference bio-
24 logical product.’’.
† HR 5376 EAS
221
1 SEC. 11403. TEMPORARY INCREASE IN MEDICARE PART B
2 PAYMENT FOR CERTAIN BIOSIMILAR BIO-
3 LOGICAL PRODUCTS.
4 Section 1847A(b)(8) of the Social Security Act (42
5 U.S.C. 1395w–3a(b)(8)) is amended—
6 (1) by redesignating subparagraphs (A) and (B)
7 as clauses (i) and (ii), respectively, and moving the
8 margin of each such redesignated clause 2 ems to the
9 right;
10 (2) by striking ‘‘PRODUCT.—The amount’’ and
11 inserting the following: ‘‘PRODUCT.—
12 ‘‘(A) IN GENERAL.—Subject to subpara-
13 graph (B), the amount’’; and
14 (3) by adding at the end the following new sub-
15 paragraph:
16 ‘‘(B) TEMPORARY PAYMENT INCREASE.—
17 ‘‘(i) IN GENERAL.—In the case of a
18 qualifying biosimilar biological product
19 that is furnished during the applicable 5-
20 year period for such product, the amount
21 specified in this paragraph for such product
22 with respect to such period is the sum deter-
23 mined under subparagraph (A), except that
24 clause (ii) of such subparagraph shall be
25 applied by substituting ‘8 percent’ for ‘6
26 percent’.
† HR 5376 EAS
222
1 ‘‘(ii) APPLICABLE 5-YEAR PERIOD.—
2 For purposes of clause (i), the applicable 5-
3 year period for a qualifying biosimilar bio-
4 logical product is—
5 ‘‘(I) in the case of such a product
6 for which payment was made under
7 this paragraph as of September 30,
8 2022, the 5-year period beginning on
9 October 1, 2022; and
10 ‘‘(II) in the case of such a product
11 for which payment is first made under
12 this paragraph during a calendar
13 quarter during the period beginning
14 October 1, 2022, and ending December
15 31, 2027, the 5-year period beginning
16 on the first day of such calendar quar-
17 ter during which such payment is first
18 made.
19 ‘‘(iii) QUALIFYING BIOSIMILAR BIO-
20 LOGICAL PRODUCT DEFINED.—For purposes
21 of this subparagraph, the term ‘qualifying
22 biosimilar biological product’ means a bio-
23 similar biological product described in
24 paragraph (1)(C) with respect to which—
† HR 5376 EAS
223
1 ‘‘(I) in the case of a product de-
2 scribed in clause (ii)(I), the average
3 sales price under paragraph (8)(A)(i)
4 for a calendar quarter during the 5-
5 year period described in such clause is
6 not more than the average sales price
7 under paragraph (4)(A) for such quar-
8 ter for the reference biological product;
9 and
10 ‘‘(II) in the case of a product de-
11 scribed in clause (ii)(II), the average
12 sales price under paragraph (8)(A)(i)
13 for a calendar quarter during the 5-
14 year period described in such clause is
15 not more than the average sales price
16 under paragraph (4)(A) for such quar-
17 ter for the reference biological prod-
18 uct.’’.
19 SEC. 11404. EXPANDING ELIGIBILITY FOR LOW-INCOME
20 SUBSIDIES UNDER PART D OF THE MEDICARE
21 PROGRAM.
22 Section 1860D–14(a) of the Social Security Act (42
23 U.S.C. 1395w–114(a)), as amended by sections 11201 and
24 11401, is amended—
† HR 5376 EAS
224
1 (1) in the subsection heading, by striking ‘‘INDI-
2 VIDUALS’’ and all that follows through ‘‘LINE’’ and
3 inserting ‘‘CERTAIN INDIVIDUALS’’;
4 (2) in paragraph (1)—
5 (A) by striking the paragraph heading and
6 inserting ‘‘INDIVIDUALS WITH CERTAIN LOW IN-
7 COMES’’; and
8 (B) in the matter preceding subparagraph
9 (A)—
10 (i) by inserting ‘‘(or, with respect to a
11 plan year beginning on or after January 1,
12 2024, 150 percent)’’ after ‘‘135 percent’’;
13 and
14 (ii) by inserting ‘‘(or, with respect to a
15 plan year beginning on or after January 1,
16 2024, paragraph (3)(E))’’ after ‘‘the re-
17 sources requirement described in paragraph
18 (3)(D)’’; and
19 (3) in paragraph (2)—
20 (A) by striking the paragraph heading and
21 inserting ‘‘OTHER LOW-INCOME INDIVIDUALS’’;
22 and
23 (B) in the matter preceding subparagraph
24 (A), by striking ‘‘In the case of a subsidy’’ and
25 inserting ‘‘With respect to a plan year beginning
† HR 5376 EAS
225
1 before January 1, 2024, in the case of a sub-
2 sidy’’.
3 SEC. 11405. IMPROVING ACCESS TO ADULT VACCINES
4 UNDER MEDICAID AND CHIP.
5 (a) MEDICAID.—
6 (1) REQUIRING COVERAGE OF ADULT VACCINA-
7 TIONS.—
8 (A) IN GENERAL.—Section 1902(a)(10)(A)
9 of the Social Security Act (42 U.S.C.
10 1396a(a)(10)(A)) is amended in the matter pre-
11 ceding clause (i) by inserting ‘‘(13)(B),’’ after
12 ‘‘(5),’’.
13 (B) MEDICALLY NEEDY.—Section
14 1902(a)(10)(C)(iv) of such Act (42 U.S.C.
15 1396a(a)(10)(C)(iv)) is amended by inserting ‘‘,
16 (13)(B),’’ after ‘‘(5)’’.
17 (2) NO COST SHARING FOR VACCINATIONS.—
18 (A) GENERAL COST-SHARING LIMITA-
19 TIONS.—Section 1916 of the Social Security Act
20 (42 U.S.C. 1396o) is amended—
21 (i) in subsection (a)(2)—
22 (I) in subparagraph (G), by in-
23 serting a comma after ‘‘State plan’’;
24 (II) in subparagraph (H), by
25 striking ‘‘; or’’ and inserting a comma;
† HR 5376 EAS
226
1 (III) in subparagraph (I), by
2 striking ‘‘; and’’ and inserting ‘‘, or’’;
3 and
4 (IV) by adding at the end the fol-
5 lowing new subparagraph:
6 ‘‘(J) vaccines described in section
7 1905(a)(13)(B) and the administration of such
8 vaccines; and’’; and
9 (ii) in subsection (b)(2)—
10 (I) in subparagraph (G), by in-
11 serting a comma after ‘‘State plan’’;
12 (II) in subparagraph (H), by
13 striking ‘‘; or’’ and inserting a comma;
14 (III) in subparagraph (I), by
15 striking ‘‘; and’’ and inserting ‘‘, or’’;
16 and
17 (IV) by adding at the end the fol-
18 lowing new subparagraph:
19 ‘‘(J) vaccines described in section
20 1905(a)(13)(B) and the administration of such
21 vaccines; and’’.
22 (B) APPLICATION TO ALTERNATIVE COST
23 SHARING.—Section 1916A(b)(3)(B) of the Social
24 Security Act (42 U.S.C. 1396o–1(b)(3)(B)) is
† HR 5376 EAS
227
1 amended by adding at the end the following new
2 clause:
3 ‘‘(xiv) Vaccines described in section
4 1905(a)(13)(B) and the administration of
5 such vaccines.’’.
6 (3) INCREASED FMAP FOR ADULT VACCINES AND
7 THEIR ADMINISTRATION.—Section 1905(b) of the So-
8 cial Security Act (42 U.S.C. 1396d(b)) is amended—
9 (A) by striking ‘‘and (5)’’ and inserting
10 ‘‘(5)’’;
11 (B) by striking ‘‘services and vaccines de-
12 scribed in subparagraphs (A) and (B) of sub-
13 section (a)(13), and prohibits cost-sharing for
14 such services and vaccines’’ and inserting ‘‘serv-
15 ices described in subsection (a)(13)(A), and pro-
16 hibits cost-sharing for such services’’;
17 (C) by striking ‘‘medical assistance for such
18 services and vaccines’’ and inserting ‘‘medical
19 assistance for such services’’; and
20 (D) by inserting ‘‘, and (6) during the first
21 8 fiscal quarters beginning on or after the effec-
22 tive date of this clause, in the case of a State
23 which, as of the date of enactment of the Act ti-
24 tled ‘An Act to provide for reconciliation pursu-
25 ant to title II of S. Con. Res. 14’, provides med-
† HR 5376 EAS
228
1 ical assistance for vaccines described in sub-
2 section (a)(13)(B) and their administration and
3 prohibits cost-sharing for such vaccines, the Fed-
4 eral medical assistance percentage, as determined
5 under this subsection and subsection (y), shall be
6 increased by 1 percentage point with respect to
7 medical assistance for such vaccines and their
8 administration’’ before the first period.
9 (b) CHIP.—
10 (1) REQUIRING COVERAGE OF ADULT VACCINA-
11 TIONS.—Section 2103(c) of the Social Security Act
12 (42 U.S.C. 1397cc(c)) is amended by adding at the
13 end the following paragraph:
14 ‘‘(12) REQUIRED COVERAGE OF APPROVED, REC-
15 OMMENDED ADULT VACCINES AND THEIR ADMINIS-
16 TRATION.—Regardless of the type of coverage elected
17 by a State under subsection (a), if the State child
18 health plan or a waiver of such plan provides child
19 health assistance or pregnancy-related assistance (as
20 defined in section 2112) to an individual who is 19
21 years of age or older, such assistance shall include
22 coverage of vaccines described in section
23 1905(a)(13)(B) and their administration.’’.
24 (2) NO COST-SHARING FOR VACCINATIONS.—Sec-
25 tion 2103(e)(2) of such Act (42 U.S.C. 1397cc(e)(2))
† HR 5376 EAS
229
1 is amended by inserting ‘‘vaccines described in sub-
2 section (c)(12) (and the administration of such vac-
3 cines),’’ after ‘‘in vitro diagnostic products described
4 in subsection (c)(10) (and administration of such
5 products),’’.
6 (c) EFFECTIVE DATE.—The amendments made by this
7 section take effect on the 1st day of the 1st fiscal quarter
8 that begins on or after the date that is 1 year after the
9 date of enactment of this Act and shall apply to expendi-
10 tures made under a State plan or waiver of such plan under
11 title XIX of the Social Security Act (42 U.S.C. 1396
12 through 1396w–6) or under a State child health plan or
13 waiver of such plan under title XXI of such Act (42 U.S.C.
14 1397aa through 1397mm) on or after such effective date.
15 SEC. 11406. APPROPRIATE COST-SHARING FOR COVERED IN-
16 SULIN PRODUCTS UNDER MEDICARE PART D.
17 (a) IN GENERAL.—Section 1860D–2 of the Social Se-
18 curity Act (42 U.S.C. 1395w–102), as amended by sections
19 11201, 11202, and 11401, is amended—
20 (1) in subsection (b)—
21 (A) in paragraph (1)(A), by striking ‘‘para-
22 graph (8)’’ and inserting ‘‘paragraphs (8) and
23 (9)’’;
24 (B) in paragraph (2)—
† HR 5376 EAS
230
1 (i) in subparagraph (A), by striking
2 ‘‘paragraph (8)’’ and inserting ‘‘paragraphs
3 (8) and (9)’’;
4 (ii) in subparagraph (C)(i), in the
5 matter preceding subclause (I), by striking
6 ‘‘and (8)’’ and inserting ‘‘, (8), and (9)’’;
7 and
8 (iii) in subparagraph (D)(i), in the
9 matter preceding subclause (I), by striking
10 ‘‘and (8)’’ and inserting ‘‘, (8), and (9)’’;
11 (C) in paragraph (3)(A), in the matter pre-
12 ceding clause (i), by striking ‘‘and (8)’’ and in-
13 serting ‘‘(8), and (9)’’;
14 (D) in paragraph (4)(A)(i), by striking
15 ‘‘paragraph (8)’’ and inserting ‘‘paragraphs (8)
16 and (9)’’; and
17 (E) by adding at the end the following new
18 paragraph:
19 ‘‘(9) TREATMENT OF COST-SHARING FOR COV-
20 ERED INSULIN PRODUCTS.—
21 ‘‘(A) NO APPLICATION OF DEDUCTIBLE.—
22 For plan year 2023 and subsequent plan years,
23 the deductible under paragraph (1) shall not
24 apply with respect to any covered insulin prod-
25 uct.
† HR 5376 EAS
231
1 ‘‘(B) APPLICATION OF COST-SHARING.—
2 ‘‘(i) PLAN YEARS 2023 AND 2024.—For
3 plan years 2023 and 2024, the coverage
4 provides benefits for any covered insulin
5 product, regardless of whether an individual
6 has reached the initial coverage limit under
7 paragraph (3) or the out-of-pocket threshold
8 under paragraph (4), with cost-sharing for
9 a month’s supply that does not exceed the
10 applicable copayment amount.
11 ‘‘(ii) PLAN YEAR 2025 AND SUBSE-
12 QUENT PLAN YEARS.—For a plan year be-
13 ginning on or after January 1, 2025, the
14 coverage provides benefits for any covered
15 insulin product, prior to an individual
16 reaching the out-of-pocket threshold under
17 paragraph (4), with cost-sharing for a
18 month’s supply that does not exceed the ap-
19 plicable copayment amount.
20 ‘‘(C) COVERED INSULIN PRODUCT.—In this
21 paragraph, the term ‘covered insulin product’
22 means an insulin product that is a covered part
23 D drug covered under the prescription drug plan
24 or MA–PD plan that is approved under section
25 505 of the Federal Food, Drug, and Cosmetic Act
† HR 5376 EAS
232
1 or licensed under section 351 of the Public
2 Health Service Act and marketed pursuant to
3 such approval or licensure, including any cov-
4 ered insulin product that has been deemed to be
5 licensed under section 351 of the Public Health
6 Service Act pursuant to section 7002(e)(4) of the
7 Biologics Price Competition and Innovation Act
8 of 2009 and marketed pursuant to such section.
9 ‘‘(D) APPLICABLE COPAYMENT AMOUNT.—
10 In this paragraph, the term ‘applicable copay-
11 ment amount’ means, with respect to a covered
12 insulin product under a prescription drug plan
13 or an MA–PD plan dispensed—
14 ‘‘(i) during plan years 2023, 2024, and
15 2025, $35; and
16 ‘‘(ii) during plan year 2026 and each
17 subsequent plan year, the lesser of—
18 ‘‘(I) $35;
19 ‘‘(II) an amount equal to 25 per-
20 cent of the maximum fair price estab-
21 lished for the covered insulin product
22 in accordance with part E of title XI;
23 or
24 ‘‘(III) an amount equal to 25 per-
25 cent of the negotiated price of the cov-
† HR 5376 EAS
233
1 ered insulin product under the pre-
2 scription drug plan or MA–PD plan.
3 ‘‘(E) SPECIAL RULE FOR FIRST 3 MONTHS
4 OF 2023.—With respect to a month’s supply of a
5 covered insulin product dispensed during the pe-
6 riod beginning on January 1, 2023, and ending
7 on March 31, 2023, a PDP sponsor offering a
8 prescription drug plan or an MA organization
9 offering an MA–PD plan shall reimburse an en-
10 rollee within 30 days for any cost-sharing paid
11 by such enrollee that exceeds the cost-sharing ap-
12 plied by the prescription drug plan or MA–PD
13 plan under subparagraph (B)(i) at the point-of-
14 sale for such month’s supply.’’; and
15 (2) in subsection (c), by adding at the end the
16 following new paragraph:
17 ‘‘(6) TREATMENT OF COST-SHARING FOR COV-
18 ERED INSULIN PRODUCTS.—The coverage is provided
19 in accordance with subsection (b)(9).’’.
20 (b) CONFORMING AMENDMENTS TO COST-SHARING FOR
21 LOW-INCOME INDIVIDUALS.—Section 1860D–14(a) of the
22 Social Security Act (42 U.S.C. 1395w–114(a)), as amended
23 by sections 11201, 11401, and 11404, is amended—
24 (1) in paragraph (1)—
† HR 5376 EAS
234
1 (A) in subparagraph (D)(iii), by adding at
2 the end the following new sentence: ‘‘For plan
3 year 2023 and subsequent plan years, the copay-
4 ment amount applicable under the preceding
5 sentence to a month’s supply of a covered insulin
6 product (as defined in section 1860D–2(b)(9)(C))
7 dispensed to the individual may not exceed the
8 applicable copayment amount for the product
9 under the prescription drug plan or MA–PD
10 plan in which the individual is enrolled.’’; and
11 (B) in subparagraph (E), by inserting the
12 following before the period at the end: ‘‘or under
13 section 1860D–2(b)(9) in the case of a covered
14 insulin product (as defined in subparagraph (C)
15 of such section)’’; and
16 (2) in paragraph (2)—
17 (A) in subparagraph (B), by striking ‘‘sec-
18 tion 1860D–2(b)(8)’’ and inserting ‘‘paragraphs
19 (8) and (9) of section 1860D–2(b)’’;
20 (B) in subparagraph (D), by adding at the
21 end the following new sentence: ‘‘For plan year
22 2023, the amount of the coinsurance applicable
23 under the preceding sentence to a month’s supply
24 of a covered insulin product (as defined in sec-
25 tion 1860D–2(b)(9)(C)) dispensed to the indi-
† HR 5376 EAS
235
1 vidual may not exceed the applicable copayment
2 amount for the product under the prescription
3 drug plan or MA–PD plan in which the indi-
4 vidual is enrolled.’’; and
5 (C) in subparagraph (E), by adding at the
6 end the following new sentence: ‘‘For plan year
7 2023, the amount of the copayment or coinsur-
8 ance applicable under the preceding sentence to
9 a month’s supply of a covered insulin product
10 (as defined in section 1860D–2(b)(9)(C)) dis-
11 pensed to the individual may not exceed the ap-
12 plicable copayment amount for the product
13 under the prescription drug plan or MA–PD
14 plan in which the individual is enrolled.’’.
15 (c) TEMPORARY RETROSPECTIVE SUBSIDY.—Section
16 1860D–15(h) of the Social Security Act (42 U.S.C. 1395w–
17 115(h)), as added by section 11401(c), is amended—
18 (1) in the subsection heading, by inserting ‘‘AND
19 INSULIN’’ after ‘‘PRACTICES’’; and
20 (2) in paragraph (1), by striking ‘‘section
21 1860D–2(b)(8)’’ and inserting ‘‘paragraph (8) or (9)
22 of section 1860D–2(b)’’.
23 (d) IMPLEMENTATION FOR 2023 THROUGH 2025.—The
24 Secretary shall implement this section for plan years 2023,
† HR 5376 EAS
236
1 2024, and 2025 by program instruction or other forms of
2 program guidance.
3 (e) FUNDING.—In addition to amounts otherwise
4 available, there is appropriated to the Centers for Medicare
5 & Medicaid Services, out of any money in the Treasury
6 not otherwise appropriated, $1,500,000 for fiscal year 2022,
7 to remain available until expended, to carry out the provi-
8 sions of, including the amendments made by, this section.
9 SEC. 11407. LIMITATION ON MONTHLY COINSURANCE AND
10 ADJUSTMENTS TO SUPPLIER PAYMENT
11 UNDER MEDICARE PART B FOR INSULIN FUR-
12 NISHED THROUGH DURABLE MEDICAL EQUIP-
13 MENT.
14 (a) WAIVER OF DEDUCTIBLE.—The first sentence of
15 section 1833(b) of the Social Security Act (42 U.S.C.
16 1395l(b)) is amended—
17 (1) by striking ‘‘and (12)’’ and inserting ‘‘(12)’’;
18 and
19 (2) by inserting before the period the following:
20 ‘‘, and (13) such deductible shall not apply with re-
21 spect to insulin furnished on or after July 1, 2023,
22 through an item of durable medical equipment cov-
23 ered under section 1861(n).’’.
24 (b) COINSURANCE.—
† HR 5376 EAS
237
1 (1) IN GENERAL.—Section 1833(a)(1)(S) of the
2 Social Security Act (42 U.S.C. 1395l(a)(1)(S)) is
3 amended—
4 (A) by inserting ‘‘(i) except as provided in
5 clause (ii),’’ after ‘‘(S)’’; and
6 (B) by inserting after ‘‘or 1847B),’’ the fol-
7 lowing: ‘‘and (ii) with respect to insulin fur-
8 nished on or after July 1, 2023, through an item
9 of durable medical equipment covered under sec-
10 tion 1861(n), the amounts paid shall be, subject
11 to the fourth sentence of this subsection, 80 per-
12 cent of the payment amount established under
13 section 1847A (or section 1847B, if applicable)
14 for such insulin,’’.
15 (2) ADJUSTMENT TO SUPPLIER PAYMENTS; LIMI-
16 TATION ON MONTHLY COINSURANCE.—Section 1833(a)
17 of the Social Security Act (42 U.S.C. 1395l(a)) is
18 amended, in the flush matter at the end, by adding
19 at the end the following new sentence: ‘‘The Secretary
20 shall make such adjustments as may be necessary to
21 the amounts paid as specified under paragraph
22 (1)(S)(ii) for insulin furnished on or after July 1,
23 2023, through an item of durable medical equipment
24 covered under section 1861(n), such that the amount
25 of coinsurance payable by an individual enrolled
† HR 5376 EAS
238
1 under this part for a month’s supply of such insulin
2 does not exceed $35.’’.
3 (c) IMPLEMENTATION.—The Secretary of Health and
4 Human Services shall implement this section for 2023 by
5 program instruction or other forms of program guidance.
6 SEC. 11408. SAFE HARBOR FOR ABSENCE OF DEDUCTIBLE
7 FOR INSULIN.
8 (a) IN GENERAL.—Paragraph (2) of section 223(c) of
9 the Internal Revenue Code of 1986 is amended by adding
10 at the end the following new subparagraph:
11 ‘‘(G) SAFE HARBOR FOR ABSENCE OF DE-
12 DUCTIBLE FOR CERTAIN INSULIN PRODUCTS.—
13 ‘‘(i) IN GENERAL.—A plan shall not
14 fail to be treated as a high deductible health
15 plan by reason of failing to have a deduct-
16 ible for selected insulin products.
17 ‘‘(ii) SELECTED INSULIN PRODUCTS.—
18 For purposes of this subparagraph—
19 ‘‘(I) IN GENERAL.—The term ‘se-
20 lected insulin products’ means any
21 dosage form (such as vial, pump, or
22 inhaler dosage forms) of any different
23 type (such as rapid-acting, short-act-
24 ing, intermediate-acting, long-acting,
† HR 5376 EAS
239
1 ultra long-acting, and premixed) of in-
2 sulin.
3 ‘‘(II) INSULIN.—The term ‘insu-
4 lin’ means insulin that is licensed
5 under subsection (a) or (k) of section
6 351 of the Public Health Service Act
7 (42 U.S.C. 262) and continues to be
8 marketed under such section, including
9 any insulin product that has been
10 deemed to be licensed under section
11 351(a) of such Act pursuant to section
12 7002(e)(4) of the Biologics Price Com-
13 petition and Innovation Act of 2009
14 (Public Law 111–148) and continues
15 to be marketed pursuant to such licen-
16 sure.’’.
17 (b) EFFECTIVE DATE.—The amendment made by this
18 section shall apply to plan years beginning after December
19 31, 2022.
† HR 5376 EAS
240
1 Subtitle C—Affordable Care Act
2 Subsidies
3 SEC. 12001. IMPROVE AFFORDABILITY AND REDUCE PRE-
4 MIUM COSTS OF HEALTH INSURANCE FOR
5 CONSUMERS.
6 (a) IN GENERAL.—Clause (iii) of section 36B(b)(3)(A)
7 of the Internal Revenue Code of 1986 is amended—
8 (1) by striking ‘‘in 2021 or 2022’’ and inserting
9 ‘‘after December 31, 2020, and before January 1,
10 2026’’, and
11 (2) by striking ‘‘2021 AND 2022’’ in the heading
12 and inserting ‘‘2021 THROUGH 2025’’.
13 (b) EXTENSION THROUGH 2025 OF RULE TO ALLOW
14 CREDIT TO TAXPAYERS WHOSE HOUSEHOLD INCOME EX-
15 CEEDS 400 PERCENT OF THE POVERTY LINE.—Section
16 36B(c)(1)(E) of the Internal Revenue Code of 1986 is
17 amended—
18 (1) by striking ‘‘in 2021 or 2022’’ and inserting
19 ‘‘after December 31, 2020, and before January 1,
20 2026’’, and
21 (2) by striking ‘‘2021 AND 2022’’ in the heading
22 and inserting ‘‘2021 THROUGH 2025’’.
23 (c) EFFECTIVE DATE.—The amendments made by this
24 section shall apply to taxable years beginning after Decem-
25 ber 31, 2022.
† HR 5376 EAS
241
1 Subtitle D—Energy Security
2 SEC. 13001. AMENDMENT OF 1986 CODE.
3 Except as otherwise expressly provided, whenever in
4 this subtitle an amendment or repeal is expressed in terms
5 of an amendment to, or repeal of, a section or other provi-
6 sion, the reference shall be considered to be made to a section
7 or other provision of the Internal Revenue Code of 1986.
8 PART 1—CLEAN ELECTRICITY AND REDUCING
9 CARBON EMISSIONS
10 SEC. 13101. EXTENSION AND MODIFICATION OF CREDIT
11 FOR ELECTRICITY PRODUCED FROM CERTAIN
12 RENEWABLE RESOURCES.
13 (a) IN GENERAL.—The following provisions of section
14 45(d) are each amended by striking ‘‘January 1, 2022’’
15 each place it appears and inserting ‘‘January 1, 2025’’:
16 (1) Paragraph (2)(A).
17 (2) Paragraph (3)(A).
18 (3) Paragraph (6).
19 (4) Paragraph (7).
20 (5) Paragraph (9).
21 (6) Paragraph (11)(B).
22 (b) BASE CREDIT AMOUNT.—Section 45 is amended—
23 (1) in subsection (a)(1), by striking ‘‘1.5 cents’’
24 and inserting ‘‘0.3 cents’’, and
† HR 5376 EAS
242
1 (2) in subsection (b)(2), by striking ‘‘1.5 cent’’
2 and inserting ‘‘0.3 cent’’.
3 (c) APPLICATION OF EXTENSION TO GEOTHERMAL AND
4 SOLAR.—Section 45(d)(4) is amended by striking ‘‘and
5 which’’ and all that follows through ‘‘January 1, 2022’’ and
6 inserting ‘‘and the construction of which begins before Jan-
7 uary 1, 2025’’.
8 (d) EXTENSION OF ELECTION TO TREAT QUALIFIED
9 FACILITIES AS ENERGY PROPERTY.—Section
10 48(a)(5)(C)(ii) is amended by striking ‘‘January 1, 2022’’
11 and inserting ‘‘January 1, 2025’’.
12 (e) APPLICATION OF EXTENSION TO WIND FACILI-
13 TIES.—
14 (1) IN GENERAL.—Section 45(d)(1) is amended
15 by striking ‘‘January 1, 2022’’ and inserting ‘‘Janu-
16 ary 1, 2025’’.
17 (2) APPLICATION OF PHASEOUT PERCENTAGE.—
18 (A) RENEWABLE ELECTRICITY PRODUCTION
19 CREDIT.—Section 45(b)(5) is amended by insert-
20 ing ‘‘which is placed in service before January
21 1, 2022’’ after ‘‘using wind to produce elec-
22 tricity’’.
23 (B) ENERGY CREDIT.—Section 48(a)(5)(E)
24 is amended by inserting ‘‘placed in service before
† HR 5376 EAS
243
1 January 1, 2022, and’’ before ‘‘treated as energy
2 property’’.
3 (3) QUALIFIED OFFSHORE WIND FACILITIES
4 UNDER ENERGY CREDIT.—Section 48(a)(5)(F)(i) is
5 amended by striking ‘‘offshore wind facility’’ and all
6 that follows and inserting the following: ‘‘offshore
7 wind facility, subparagraph (E) shall not apply.’’.
8 (f) WAGE AND APPRENTICESHIP REQUIREMENTS.—
9 Section 45(b) is amended by adding at the end the following
10 new paragraphs:
11 ‘‘(6) INCREASED CREDIT AMOUNT FOR QUALI-
12 FIED FACILITIES.—
13 ‘‘(A) IN GENERAL.—In the case of any
14 qualified facility which satisfies the requirements
15 of subparagraph (B), the amount of the credit
16 determined under subsection (a) (determined
17 after the application of paragraphs (1) through
18 (5) and without regard to this paragraph) shall
19 be equal to such amount multiplied by 5.
20 ‘‘(B) QUALIFIED FACILITY REQUIRE-
21 MENTS.—A qualified facility meets the require-
22 ments of this subparagraph if it is one of the fol-
23 lowing:
† HR 5376 EAS
244
1 ‘‘(i) A facility with a maximum net
2 output of less than 1 megawatt (as meas-
3 ured in alternating current).
4 ‘‘(ii) A facility the construction of
5 which begins prior to the date that is 60
6 days after the Secretary publishes guidance
7 with respect to the requirements of para-
8 graphs (7)(A) and (8).
9 ‘‘(iii) A facility which satisfies the re-
10 quirements of paragraphs (7)(A) and (8).
11 ‘‘(7) PREVAILING WAGE REQUIREMENTS.—
12 ‘‘(A) IN GENERAL.—The requirements de-
13 scribed in this subparagraph with respect to any
14 qualified facility are that the taxpayer shall en-
15 sure that any laborers and mechanics employed
16 by the taxpayer or any contractor or subcon-
17 tractor in—
18 ‘‘(i) the construction of such facility,
19 and
20 ‘‘(ii) with respect to any taxable year,
21 for any portion of such taxable year which
22 is within the period described in subsection
23 (a)(2)(A)(ii), the alteration or repair of
24 such facility,
† HR 5376 EAS
245
1 shall be paid wages at rates not less than the
2 prevailing rates for construction, alteration, or
3 repair of a similar character in the locality in
4 which such facility is located as most recently
5 determined by the Secretary of Labor, in accord-
6 ance with subchapter IV of chapter 31 of title 40,
7 United States Code. For purposes of determining
8 an increased credit amount under paragraph
9 (6)(A) for a taxable year, the requirement under
10 clause (ii) is applied to such taxable year in
11 which the alteration or repair of the qualified fa-
12 cility occurs.’’
13 ‘‘(B) CORRECTION AND PENALTY RELATED
14 TO FAILURE TO SATISFY WAGE REQUIRE-
15 MENTS.—
16 ‘‘(i) IN GENERAL.—In the case of any
17 taxpayer which fails to satisfy the require-
18 ment under subparagraph (A) with respect
19 to the construction of any qualified facility
20 or with respect to the alteration or repair of
21 a facility in any year during the period de-
22 scribed in subparagraph (A)(ii), such tax-
23 payer shall be deemed to have satisfied such
24 requirement under such subparagraph with
25 respect to such facility for any year if, with
† HR 5376 EAS
246
1 respect to any laborer or mechanic who was
2 paid wages at a rate below the rate de-
3 scribed in such subparagraph for any pe-
4 riod during such year, such taxpayer—
5 ‘‘(I) makes payment to such la-
6 borer or mechanic in an amount equal
7 to the sum of—
8 ‘‘(aa) an amount equal to the
9 difference between—
10 ‘‘(AA) the amount of
11 wages paid to such laborer or
12 mechanic during such period,
13 and
14 ‘‘(BB) the amount of
15 wages required to be paid to
16 such laborer or mechanic
17 pursuant to such subpara-
18 graph during such period,
19 plus
20 ‘‘(bb) interest on the amount
21 determined under item (aa) at the
22 underpayment rate established
23 under section 6621 (determined by
24 substituting ‘6 percentage points’
25 for ‘3 percentage points’ in sub-
† HR 5376 EAS
247
1 section (a)(2) of such section) for
2 the period described in such item,
3 and
4 ‘‘(II) makes payment to the Sec-
5 retary of a penalty in an amount
6 equal to the product of—
7 ‘‘(aa) $5,000, multiplied by
8 ‘‘(bb) the total number of la-
9 borers and mechanics who were
10 paid wages at a rate below the
11 rate described in subparagraph
12 (A) for any period during such
13 year.
14 ‘‘(ii) DEFICIENCY PROCEDURES NOT TO
15 APPLY.—Subchapter B of chapter 63 (relat-
16 ing to deficiency procedures for income, es-
17 tate, gift, and certain excise taxes) shall not
18 apply with respect to the assessment or col-
19 lection of any penalty imposed by this
20 paragraph.
21 ‘‘(iii) INTENTIONAL DISREGARD.—If
22 the Secretary determines that any failure
23 described in clause (i) is due to intentional
24 disregard of the requirements under sub-
† HR 5376 EAS
248
1 paragraph (A), such clause shall be ap-
2 plied—
3 ‘‘(I) in subclause (I), by sub-
4 stituting ‘three times the sum’ for ‘the
5 sum’, and
6 ‘‘(II) in subclause (II), by sub-
7 stituting ‘$10,000’ for ‘5,000’ in item
8 (aa) thereof.
9 ‘‘(iv) LIMITATION ON PERIOD FOR PAY-
10 MENT.—Pursuant to rules issued by the
11 Secretary, in the case of a final determina-
12 tion by the Secretary with respect to any
13 failure by the taxpayer to satisfy the re-
14 quirement under subparagraph (A), sub-
15 paragraph (B)(i) shall not apply unless the
16 payments described in subclauses (I) and
17 (II) of such subparagraph are made by the
18 taxpayer on or before the date which is 180
19 days after the date of such determination.
20 ‘‘(8) APPRENTICESHIP REQUIREMENTS.—The re-
21 quirements described in this paragraph with respect
22 to the construction of any qualified facility are as fol-
23 lows:
24 ‘‘(A) LABOR HOURS.—
† HR 5376 EAS
249
1 ‘‘(i) PERCENTAGE OF TOTAL LABOR
2 HOURS.—Taxpayers shall ensure that, with
3 respect to the construction of any qualified
4 facility, not less than the applicable per-
5 centage of the total labor hours of the con-
6 struction, alteration, or repair work (in-
7 cluding such work performed by any con-
8 tractor or subcontractor) with respect to
9 such facility shall, subject to subparagraph
10 (B), be performed by qualified apprentices.
11 ‘‘(ii) APPLICABLE PERCENTAGE.—For
12 purposes of clause (i), the applicable per-
13 centage shall be—
14 ‘‘(I) in the case of a qualified fa-
15 cility the construction of which begins
16 before January 1, 2023, 10 percent,
17 ‘‘(II) in the case of a qualified fa-
18 cility the construction of which begins
19 after December 31, 2022, and before
20 January 1, 2024, 12.5 percent, and
21 ‘‘(III) in the case of a qualified
22 facility the construction of which be-
23 gins after December 31, 2023, 15 per-
24 cent.
† HR 5376 EAS
250
1 ‘‘(B) APPRENTICE TO JOURNEYWORKER
2 RATIO.—The requirement under subparagraph
3 (A)(i) shall be subject to any applicable require-
4 ments for apprentice-to-journeyworker ratios of
5 the Department of Labor or the applicable State
6 apprenticeship agency.
7 ‘‘(C) PARTICIPATION.—Each taxpayer, con-
8 tractor, or subcontractor who employs 4 or more
9 individuals to perform construction, alteration,
10 or repair work with respect to the construction
11 of a qualified facility shall employ 1 or more
12 qualified apprentices to perform such work.
13 ‘‘(D) EXCEPTION.—
14 ‘‘(i) IN GENERAL.—A taxpayer shall
15 not be treated as failing to satisfy the re-
16 quirements of this paragraph if such tax-
17 payer—
18 ‘‘(I) satisfies the requirements de-
19 scribed in clause (ii), or
20 ‘‘(II) subject to clause (iii), in the
21 case of any failure by the taxpayer to
22 satisfy the requirement under subpara-
23 graphs (A) and (C) with respect to the
24 construction, alteration, or repair work
25 on any qualified facility to which sub-
† HR 5376 EAS
251
1 clause (I) does not apply, makes pay-
2 ment to the Secretary of a penalty in
3 an amount equal to the product of—
4 ‘‘(aa) $50, multiplied by
5 ‘‘(bb) the total labor hours for
6 which the requirement described
7 in such subparagraph was not
8 satisfied with respect to the con-
9 struction, alteration, or repair
10 work on such qualified facility.
11 ‘‘(ii) GOOD FAITH EFFORT.—For pur-
12 poses of clause (i), a taxpayer shall be
13 deemed to have satisfied the requirements
14 under this paragraph with respect to a
15 qualified facility if such taxpayer has re-
16 quested qualified apprentices from a reg-
17 istered apprenticeship program, as defined
18 in section 3131(e)(3)(B), and—
19 ‘‘(I) such request has been denied,
20 provided that such denial is not the re-
21 sult of a refusal by the taxpayer or any
22 contractors or subcontractors engaged
23 in the performance of construction, al-
24 teration, or repair work with respect to
25 such qualified facility to comply with
† HR 5376 EAS
252
1 the established standards and require-
2 ments of the registered apprenticeship
3 program, or
4 ‘‘(II) the registered apprenticeship
5 program fails to respond to such re-
6 quest within 5 business days after the
7 date on which such registered appren-
8 ticeship program received such request.
9 ‘‘(iii) INTENTIONAL DISREGARD.—If
10 the Secretary determines that any failure
11 described in subclause (i)(II) is due to in-
12 tentional disregard of the requirements
13 under subparagraphs (A) and (C), subclause
14 (i)(II) shall be applied by substituting
15 ‘$500’ for ‘$50’ in item (aa) thereof.
16 ‘‘(E) DEFINITIONS.—For purposes of this
17 paragraph—
18 ‘‘(i) LABOR HOURS.—The term ‘labor
19 hours’—
20 ‘‘(I) means the total number of
21 hours devoted to the performance of
22 construction, alteration, or repair work
23 by any individual employed by the
24 taxpayer or by any contractor or sub-
25 contractor, and
† HR 5376 EAS
253
1 ‘‘(II) excludes any hours worked
2 by—
3 ‘‘(aa) foremen,
4 ‘‘(bb) superintendents,
5 ‘‘(cc) owners, or
6 ‘‘(dd) persons employed in a
7 bona fide executive, administra-
8 tive, or professional capacity
9 (within the meaning of those
10 terms in part 541 of title 29, Code
11 of Federal Regulations).
12 ‘‘(ii) QUALIFIED APPRENTICE.—The
13 term ‘qualified apprentice’ means an indi-
14 vidual who is employed by the taxpayer or
15 by any contractor or subcontractor and who
16 is participating in a registered apprentice-
17 ship program, as defined in section
18 3131(e)(3)(B).
19 ‘‘(9) REGULATIONS AND GUIDANCE.—The Sec-
20 retary shall issue such regulations or other guidance
21 as the Secretary determines necessary to carry out the
22 purposes of this subsection, including regulations or
23 other guidance which provides for requirements for
24 recordkeeping or information reporting for purposes
25 of administering the requirements of this subsection.’’.
† HR 5376 EAS
254
1 (g) DOMESTIC CONTENT, PHASEOUT, AND ENERGY
2 COMMUNITIES.—Section 45(b), as amended by subsection
3 (f), is amended—
4 (1) by redesignating paragraph (9) as para-
5 graph (12), and
6 (2) by inserting after paragraph (8) the fol-
7 lowing:
8 ‘‘(9) DOMESTIC CONTENT BONUS CREDIT
9 AMOUNT.—
10 ‘‘(A) IN GENERAL.—In the case of any
11 qualified facility which satisfies the requirement
12 under subparagraph (B)(i), the amount of the
13 credit determined under subsection (a) (deter-
14 mined after the application of paragraphs (1)
15 through (8)) shall be increased by an amount
16 equal to 10 percent of the amount so determined.
17 ‘‘(B) REQUIREMENT.—
18 ‘‘(i) IN GENERAL.—The requirement
19 described in this clause is satisfied with re-
20 spect to any qualified facility if the tax-
21 payer certifies to the Secretary (at such
22 time, and in such form and manner, as the
23 Secretary may prescribe) that any steel,
24 iron, or manufactured product which is a
25 component of such facility (upon completion
† HR 5376 EAS
255
1 of construction) was produced in the United
2 States (as determined under section 661 of
3 title 49, Code of Federal Regulations).
4 ‘‘(ii) STEEL AND IRON.—In the case of
5 steel or iron, clause (i) shall be applied in
6 a manner consistent with section 661.5 of
7 title 49, Code of Federal Regulations.
8 ‘‘(iii) MANUFACTURED PRODUCT.—For
9 purposes of clause (i), the manufactured
10 products which are components of a quali-
11 fied facility upon completion of construction
12 shall be deemed to have been produced in
13 the United States if not less than the ad-
14 justed percentage (as determined under sub-
15 paragraph (C)) of the total costs of all such
16 manufactured products of such facility are
17 attributable to manufactured products (in-
18 cluding components) which are mined, pro-
19 duced, or manufactured in the United
20 States.
21 ‘‘(C) ADJUSTED PERCENTAGE.—
22 ‘‘(i) IN GENERAL.—Subject to sub-
23 clause (ii), for purposes of subparagraph
24 (B)(iii), the adjusted percentage shall be 40
25 percent.
† HR 5376 EAS
256
1 ‘‘(ii) OFFSHORE WIND FACILITY.—For
2 purposes of subparagraph (B)(iii), in the
3 case of a qualified facility which is an off-
4 shore wind facility, the adjusted percentage
5 shall be 20 percent.
6 ‘‘(10) PHASEOUT FOR ELECTIVE PAYMENT.—
7 ‘‘(A) IN GENERAL.—In the case of a tax-
8 payer making an election under section 6417
9 with respect to a credit under this section, the
10 amount of such credit shall be replaced with—
11 ‘‘(i) the value of such credit (deter-
12 mined without regard to this paragraph),
13 multiplied by
14 ‘‘(ii) the applicable percentage.
15 ‘‘(B) 100 PERCENT APPLICABLE PERCENT-
16 AGE FOR CERTAIN QUALIFIED FACILITIES.—In
17 the case of any qualified facility—
18 ‘‘(i) which satisfies the requirements
19 under paragraph (9)(B), or
20 ‘‘(ii) with a maximum net output of
21 less than 1 megawatt (as measured in alter-
22 nating current),
23 the applicable percentage shall be 100 percent.
24 ‘‘(C) PHASED DOMESTIC CONTENT RE-
25 QUIREMENT.—Subject to subparagraph (D), in
† HR 5376 EAS
257
1 the case of any qualified facility which is not de-
2 scribed in subparagraph (B), the applicable per-
3 centage shall be—
4 ‘‘(i) if construction of such facility
5 began before January 1, 2024, 100 percent,
6 and
7 ‘‘(ii) if construction of such facility
8 began in calendar year 2024, 90 percent.
9 ‘‘(D) EXCEPTION.—
10 ‘‘(i) IN GENERAL.—For purposes of
11 this paragraph, the Secretary shall provide
12 exceptions to the requirements under this
13 paragraph if—
14 ‘‘(I) the inclusion of steel, iron, or
15 manufactured products which are pro-
16 duced in the United States increases
17 the overall costs of construction of
18 qualified facilities by more than 25
19 percent, or
20 ‘‘(II) relevant steel, iron, or man-
21 ufactured products are not produced in
22 the United States in sufficient and rea-
23 sonably available quantities or of a
24 satisfactory quality.
† HR 5376 EAS
258
1 ‘‘(ii) APPLICABLE PERCENTAGE.—In
2 any case in which the Secretary provides an
3 exception pursuant to clause (i), the appli-
4 cable percentage shall be 100 percent.
5 ‘‘(11) SPECIAL RULE FOR QUALIFIED FACILITY
6 LOCATED IN ENERGY COMMUNITY.—
7 ‘‘(A) IN GENERAL.—In the case of a quali-
8 fied facility which is located in an energy com-
9 munity, the credit determined under subsection
10 (a) (determined after the application of para-
11 graphs (1) through (10), without the application
12 of paragraph (9)) shall be increased by an
13 amount equal to 10 percent of the amount so de-
14 termined.
15 ‘‘(B) ENERGY COMMUNITY.—For purposes
16 of this paragraph, the term ‘energy community’
17 means—
18 ‘‘(i) a brownfield site (as defined in
19 subparagraphs (A), (B), and (D)(ii)(III) of
20 section 101(39) of the Comprehensive Envi-
21 ronmental Response, Compensation, and Li-
22 ability Act of 1980 (42 U.S.C. 9601(39))),
23 ‘‘(ii) a metropolitan statistical area or
24 non-metropolitan statistical area which—
† HR 5376 EAS
259
1 ‘‘(I) has (or, at any time during
2 the period beginning after December
3 31, 2009, had) 0.17 percent or greater
4 direct employment or 25 percent or
5 greater local tax revenues related to the
6 extraction, processing, transport, or
7 storage of coal, oil, or natural gas (as
8 determined by the Secretary), and
9 ‘‘(II) has an unemployment rate
10 at or above the national average unem-
11 ployment rate for the previous year (as
12 determined by the Secretary), or
13 ‘‘(iii) a census tract—
14 ‘‘(I) in which—
15 ‘‘(aa) after December 31,
16 1999, a coal mine has closed, or
17 ‘‘(bb) after December 31,
18 2009, a coal-fired electric gener-
19 ating unit has been retired, or
20 ‘‘(II) which is directly adjoining
21 to any census tract described in sub-
22 clause (I).’’.
23 (h) CREDIT REDUCED FOR TAX-EXEMPT BONDS.—
24 Section 45(b)(3) is amended to read as follows:
† HR 5376 EAS
260
1 ‘‘(3) CREDIT REDUCED FOR TAX-EXEMPT
2 BONDS.—The amount of the credit determined under
3 subsection (a) with respect to any facility for any
4 taxable year (determined after the application of
5 paragraphs (1) and (2)) shall be reduced by the
6 amount which is the product of the amount so deter-
7 mined for such year and the lesser of 15 percent or
8 a fraction—
9 ‘‘(A) the numerator of which is the sum, for
10 the taxable year and all prior taxable years, of
11 proceeds of an issue of any obligations the inter-
12 est on which is exempt from tax under section
13 103 and which is used to provide financing for
14 the qualified facility, and
15 ‘‘(B) the denominator of which is the aggre-
16 gate amount of additions to the capital account
17 for the qualified facility for the taxable year and
18 all prior taxable years.
19 The amounts under the preceding sentence for any
20 taxable year shall be determined as of the close of the
21 taxable year.’’.
22 (i) ROUNDING ADJUSTMENT.—
23 (1) IN GENERAL.—Section 45(b)(2) is amended
24 by striking the second sentence and inserting the fol-
25 lowing: ‘‘If the 0.3 cent amount as increased under
† HR 5376 EAS
261
1 the preceding sentence is not a multiple of 0.05 cent,
2 such amount shall be rounded to the nearest multiple
3 of 0.05 cent. In any other case, if an amount as in-
4 creased under this paragraph is not a multiple of 0.1
5 cent, such amount shall be rounded to the nearest
6 multiple of 0.1 cent.’’.
7 (2) CONFORMING AMENDMENT.—Section
8 45(b)(4)(A) is amended by striking ‘‘last sentence’’
9 and inserting ‘‘last two sentences’’.
10 (j) HYDROPOWER.—
11 (1) ELIMINATION OF CREDIT RATE REDUCTION
12 FOR QUALIFIED HYDROELECTRIC PRODUCTION AND
13 MARINE AND HYDROKINETIC RENEWABLE ENERGY.—
14 Section 45(b)(4)(A), as amended by the preceding
15 provisions of this section, is amended by striking
16 ‘‘(7), (9), or (11)’’ and inserting ‘‘or (7)’’.
17 (2) MARINE AND HYDROKINETIC RENEWABLE EN-
18 ERGY.—Section 45 is amended—
19 (A) in subsection (c)(10)(A)—
20 (i) in clause (iii), by striking ‘‘or’’,
21 (ii) in clause (iv), by striking the pe-
22 riod at the end and inserting ‘‘, or’’ and
23 (iii) by adding at the end the fol-
24 lowing:
† HR 5376 EAS
262
1 ‘‘(v) pressurized water used in a pipe-
2 line (or similar man-made water convey-
3 ance) which is operated—
4 ‘‘(I) for the distribution of water
5 for agricultural, municipal, or indus-
6 trial consumption, and
7 ‘‘(II) not primarily for the gen-
8 eration of electricity.’’, and
9 (B) in subsection (d)(11)(A), by striking
10 ‘‘150’’ and inserting ‘‘25’’.
11 (k) EFFECTIVE DATES.—
12 (1) IN GENERAL.—Except as provided in para-
13 graphs (2) and (3), the amendments made by this sec-
14 tion shall apply to facilities placed in service after
15 December 31, 2021.
16 (2) CREDIT REDUCED FOR TAX-EXEMPT
17 BONDS.—The amendment made by subsection (h)
18 shall apply to facilities the construction of which be-
19 gins after the date of enactment of this Act.
20 (3) DOMESTIC CONTENT, PHASEOUT, ENERGY
21 COMMUNITIES, AND HYDROPOWER.—The amendments
22 made by subsections (g) and (j) shall apply to facili-
23 ties placed in service after December 31, 2022.
† HR 5376 EAS
263
1 SEC. 13102. EXTENSION AND MODIFICATION OF ENERGY
2 CREDIT.
3 (a) EXTENSION OF CREDIT.—The following provisions
4 of section 48 are each amended by striking ‘‘January 1,
5 2024’’ each place it appears and inserting ‘‘January 1,
6 2025’’:
7 (1) Subsection (a)(2)(A)(i)(II).
8 (2) Subsection (a)(3)(A)(ii).
9 (3) Subsection (c)(1)(D).
10 (4) Subsection (c)(2)(D).
11 (5) Subsection (c)(3)(A)(iv).
12 (6) Subsection (c)(4)(C).
13 (7) Subsection (c)(5)(D).
14 (b) FURTHER EXTENSION FOR CERTAIN ENERGY
15 PROPERTY.—Section 48(a)(3)(A)(vii) is amended by strik-
16 ing ‘‘January 1, 2024’’ and inserting ‘‘January 1, 2035’’.
17 (c) PHASEOUT OF CREDIT.—Section 48(a) is amended
18 by striking paragraphs (6) and (7) and inserting the fol-
19 lowing new paragraph:
20 ‘‘(6) PHASEOUT FOR CERTAIN ENERGY PROP-
21 ERTY.—In the case of any qualified fuel cell property,
22 qualified small wind property, or energy property de-
23 scribed in clause (i) or clause (ii) of paragraph (3)(A)
24 the construction of which begins after December 31,
25 2019, and which is placed in service before January
† HR 5376 EAS
264
1 1, 2022, the energy percentage determined under
2 paragraph (2) shall be equal to 26 percent.’’.
3 (d) BASE ENERGY PERCENTAGE AMOUNT; PHASEOUT
4 OF CERTAIN ENERGY PROPERTY.—
5 (1) BASE ENERGY PERCENTAGE AMOUNT.—Sec-
6 tion 48(a) is amended—
7 (A) in paragraph (2)(A)—
8 (i) in clause (i), by striking ‘‘30 per-
9 cent’’ and inserting ‘‘6 percent’’, and
10 (ii) in clause (ii), by striking ‘‘10 per-
11 cent’’ and inserting ‘‘2 percent’’, and
12 (B) in paragraph (5)(A)(ii), by striking
13 ‘‘30 percent’’ and inserting ‘‘6 percent’’.
14 (2) PHASEOUT OF CERTAIN ENERGY PROP-
15 ERTY.—Section 48(a), as amended by the preceding
16 provisions of this Act, is amended by adding at the
17 end the following new paragraph:
18 ‘‘(7) PHASEOUT FOR CERTAIN ENERGY PROP-
19 ERTY.—In the case of any energy property described
20 in clause (vii) of paragraph (3)(A), the energy per-
21 centage determined under paragraph (2) shall be
22 equal to—
23 ‘‘(A) in the case of any property the con-
24 struction of which begins before January 1,
† HR 5376 EAS
265
1 2033, and which is placed in service after De-
2 cember 31, 2021, 6 percent,
3 ‘‘(B) in the case of any property the con-
4 struction of which begins after December 31,
5 2032, and before January 1, 2034, 5.2 percent,
6 and
7 ‘‘(C) in the case of any property the con-
8 struction of which begins after December 31,
9 2033, and before January 1, 2035, 4.4 percent.’’.
10 (e) 6 PERCENT CREDIT FOR GEOTHERMAL.—Section
11 48(a)(2)(A)(i)(II) is amended by striking ‘‘paragraph
12 (3)(A)(i)’’ and inserting ‘‘clause (i) or (iii) of paragraph
13 (3)(A)’’.
14 (f) ENERGY STORAGE TECHNOLOGIES; QUALIFIED
15 BIOGAS PROPERTY; MICROGRID CONTROLLERS; EXTENSION
16 OF OTHER PROPERTY.—
17 (1) IN GENERAL.—Section 48(a)(3)(A) is amend-
18 ed by striking ‘‘or’’ at the end of clause (vii), and by
19 adding at the end the following new clauses:
20 ‘‘(ix) energy storage technology,
21 ‘‘(x) qualified biogas property, or
22 ‘‘(xi) microgrid controllers,’’.
23 (2) APPLICATION OF 6 PERCENT CREDIT.—Sec-
24 tion 48(a)(2)(A)(i) is amended by striking ‘‘and’’ at
† HR 5376 EAS
266
1 the end of subclauses (IV) and (V) and adding at the
2 end the following new subclauses:
3 ‘‘(VI) energy storage technology,
4 ‘‘(VII) qualified biogas property,
5 ‘‘(VIII) microgrid controllers, and
6 ‘‘(IX) energy property described
7 in clauses (v) and (vii) of paragraph
8 (3)(A), and’’.
9 (3) DEFINITIONS.—Section 48(c) is amended by
10 adding at the end the following new paragraphs:
11 ‘‘(6) ENERGY STORAGE TECHNOLOGY.—
12 ‘‘(A) IN GENERAL.—The term ‘energy stor-
13 age technology’ means—
14 ‘‘(i) property (other than property pri-
15 marily used in the transportation of goods
16 or individuals and not for the production of
17 electricity) which receives, stores, and deliv-
18 ers energy for conversion to electricity (or,
19 in the case of hydrogen, which stores en-
20 ergy), and has a nameplate capacity of not
21 less than 5 kilowatt hours, and
22 ‘‘(ii) thermal energy storage property.
23 ‘‘(B) MODIFICATIONS OF CERTAIN PROP-
24 ERTY.—In the case of any property which ei-
25 ther—
† HR 5376 EAS
267
1 ‘‘(i) was placed in service before the
2 date of enactment of this section and would
3 be described in subparagraph (A)(i), except
4 that such property has a capacity of less
5 than 5 kilowatt hours and is modified in a
6 manner that such property (after such
7 modification) has a nameplate capacity of
8 not less than 5 kilowatt hours, or
9 ‘‘(ii) is described in subparagraph
10 (A)(i) and is modified in a manner that
11 such property (after such modification) has
12 an increase in nameplate capacity of not
13 less than 5 kilowatt hours,
14 such property shall be treated as described in
15 subparagraph (A)(i) except that the basis of any
16 existing property prior to such modification
17 shall not be taken into account for purposes of
18 this section. In the case of any property to which
19 this subparagraph applies, subparagraph (D)
20 shall be applied by substituting ‘modification’
21 for ‘construction’.
22 ‘‘(C) THERMAL ENERGY STORAGE PROP-
23 ERTY.—
24 ‘‘(i) IN GENERAL.—Subject to clause
25 (ii), for purposes of this paragraph, the
† HR 5376 EAS
268
1 term ‘thermal energy storage property’
2 means property comprising a system
3 which—
4 ‘‘(I) is directly connected to a
5 heating, ventilation, or air condi-
6 tioning system,
7 ‘‘(II) removes heat from, or adds
8 heat to, a storage medium for subse-
9 quent use, and
10 ‘‘(III) provides energy for the
11 heating or cooling of the interior of a
12 residential or commercial building.
13 ‘‘(ii) EXCLUSION.—The term ‘thermal
14 energy storage property’ shall not include—
15 ‘‘(I) a swimming pool,
16 ‘‘(II) combined heat and power
17 system property, or
18 ‘‘(III) a building or its structural
19 components.
20 ‘‘(D) TERMINATION.—The term ‘energy stor-
21 age technology’ shall not include any property
22 the construction of which begins after December
23 31, 2024.
24 ‘‘(7) QUALIFIED BIOGAS PROPERTY.—
† HR 5376 EAS
269
1 ‘‘(A) IN GENERAL.—The term ‘qualified
2 biogas property’ means property comprising a
3 system which—
4 ‘‘(i) converts biomass (as defined in
5 section 45K(c)(3), as in effect on the date of
6 enactment of this paragraph) into a gas
7 which—
8 ‘‘(I) consists of not less than 52
9 percent methane by volume, or
10 ‘‘(II) is concentrated by such sys-
11 tem into a gas which consists of not
12 less than 52 percent methane, and
13 ‘‘(ii) captures such gas for sale or pro-
14 ductive use, and not for disposal via com-
15 bustion.
16 ‘‘(B) INCLUSION OF CLEANING AND CONDI-
17 TIONING PROPERTY.—The term ‘qualified biogas
18 property’ includes any property which is part of
19 such system which cleans or conditions such gas.
20 ‘‘(C) TERMINATION.—The term ‘qualified
21 biogas property’ shall not include any property
22 the construction of which begins after December
23 31, 2024.
24 ‘‘(8) MICROGRID CONTROLLER.—
† HR 5376 EAS
270
1 ‘‘(A) IN GENERAL.—The term ‘microgrid
2 controller’ means equipment which is—
3 ‘‘(i) part of a qualified microgrid, and
4 ‘‘(ii) designed and used to monitor and
5 control the energy resources and loads on
6 such microgrid.
7 ‘‘(B) QUALIFIED MICROGRID.—The term
8 ‘qualified microgrid’ means an electrical system
9 which—
10 ‘‘(i) includes equipment which is capa-
11 ble of generating not less than 4 kilowatts
12 and not greater than 20 megawatts of elec-
13 tricity,
14 ‘‘(ii) is capable of operating—
15 ‘‘(I) in connection with the elec-
16 trical grid and as a single controllable
17 entity with respect to such grid, and
18 ‘‘(II) independently (and discon-
19 nected) from such grid, and
20 ‘‘(iii) is not part of a bulk-power sys-
21 tem (as defined in section 215 of the Fed-
22 eral Power Act (16 U.S.C. 824o)).
23 ‘‘(C) TERMINATION.—The term ‘microgrid
24 controller’ shall not include any property the
† HR 5376 EAS
271
1 construction of which begins after December 31,
2 2024.’’.
3 (4) DENIAL OF DOUBLE BENEFIT FOR QUALIFIED
4 BIOGAS PROPERTY.—Section 45(e) is amended by
5 adding at the end the following new paragraph:
6 ‘‘(12) COORDINATION WITH ENERGY CREDIT FOR
7 QUALIFIED BIOGAS PROPERTY.—The term ‘qualified
8 facility’ shall not include any facility which produces
9 electricity from gas produced by qualified biogas
10 property (as defined in section 48(c)(7)) if a credit is
11 allowed under section 48 with respect to such prop-
12 erty for the taxable year or any prior taxable year.’’.
13 (5) PUBLIC UTILITY PROPERTY.—Paragraph (2)
14 of section 50(d) is amended—
15 (A) by adding after the first sentence the
16 following new sentence: ‘‘At the election of a tax-
17 payer, this paragraph shall not apply to any en-
18 ergy storage technology (as defined in section
19 48(c)(6)), provided—’’, and
20 (B) by adding the following new subpara-
21 graphs:
22 ‘‘(A) no election under this paragraph shall
23 be permitted if the making of such election is
24 prohibited by a State or political subdivision
25 thereof, by any agency or instrumentality of the
† HR 5376 EAS
272
1 United States, or by a public service or public
2 utility commission or other similar body of any
3 State or political subdivision that regulates pub-
4 lic utilities as described in section
5 7701(a)(33)(A),
6 ‘‘(B) an election under this paragraph shall
7 be made separately with respect to each energy
8 storage technology by the due date (including ex-
9 tensions) of the Federal tax return for the taxable
10 year in which the energy storage technology is
11 placed in service by the taxpayer, and once
12 made, may be revoked only with the consent of
13 the Secretary, and
14 ‘‘(C) an election shall not apply with re-
15 spect to any energy storage technology if such en-
16 ergy storage technology has a maximum capacity
17 equal to or less than 500 kilowatt hours.’’.
18 (g) FUEL CELLS USING ELECTROMECHANICAL PROC-
19 ESSES.—
20 (1) IN GENERAL.—Section 48(c)(1) is amend-
21 ed—
22 (A) in subparagraph (A)(i)—
23 (i) by inserting ‘‘or electromechanical’’
24 after ‘‘electrochemical’’, and
† HR 5376 EAS
273
1 (ii) by inserting ‘‘(1 kilowatt in the
2 case of a fuel cell power plant with a linear
3 generator assembly)’’ after ‘‘0.5 kilowatt’’,
4 and
5 (B) in subparagraph (C)—
6 (i) by inserting ‘‘, or linear generator
7 assembly,’’ after ‘‘a fuel cell stack assem-
8 bly’’, and
9 (ii) by inserting ‘‘or
10 electromechanical’’ after ‘‘electrochemical’’.
11 (2) LINEAR GENERATOR ASSEMBLY LIMITA-
12 TION.—Section 48(c)(1) is amended by redesignating
13 subparagraph (D) as subparagraph (E) and by in-
14 serting after subparagraph (C) the following new sub-
15 paragraph:
16 ‘‘(D) LINEAR GENERATOR ASSEMBLY.—The
17 term ‘linear generator assembly’ does not include
18 any assembly which contains rotating parts.’’.
19 (h) DYNAMIC GLASS.—Section 48(a)(3)(A)(ii) is
20 amended by inserting ‘‘, or electrochromic glass which uses
21 electricity to change its light transmittance properties in
22 order to heat or cool a structure,’’ after ‘‘sunlight’’.
23 (i) COORDINATION WITH LOW INCOME HOUSING TAX
24 CREDIT.—Paragraph (3) of section 50(c) is amended—
† HR 5376 EAS
274
1 (1) by striking ‘‘and’’ at the end of subpara-
2 graph (A),
3 (2) by striking the period at the end of subpara-
4 graph (B) and inserting ‘‘, and’’, and
5 (3) by adding at the end the following new sub-
6 paragraph:
7 ‘‘(C) paragraph (1) shall not apply for pur-
8 poses of determining eligible basis under section
9 42.’’.
10 (j) INTERCONNECTION PROPERTY.—Section 48(a), as
11 amended by the preceding provisions of this Act, is amended
12 by adding at the end the following new paragraph:
13 ‘‘(8) INTERCONNECTION PROPERTY.—
14 ‘‘(A) IN GENERAL.—For purposes of deter-
15 mining the credit under subsection (a), energy
16 property shall include amounts paid or incurred
17 by the taxpayer for qualified interconnection
18 property in connection with the installation of
19 energy property (as defined in paragraph (3))
20 which has a maximum net output of not greater
21 than 5 megawatts (as measured in alternating
22 current), to provide for the transmission or dis-
23 tribution of the electricity produced or stored by
24 such property, and which are properly charge-
25 able to the capital account of the taxpayer.
† HR 5376 EAS
275
1 ‘‘(B) QUALIFIED INTERCONNECTION PROP-
2 ERTY.—The term ‘qualified interconnection
3 property’ means, with respect to an energy
4 project which is not a microgrid controller, any
5 tangible property—
6 ‘‘(i) which is part of an addition,
7 modification, or upgrade to a transmission
8 or distribution system which is required at
9 or beyond the point at which the energy
10 project interconnects to such transmission
11 or distribution system in order to accommo-
12 date such interconnection,
13 ‘‘(ii) either—
14 ‘‘(I) which is constructed, recon-
15 structed, or erected by the taxpayer, or
16 ‘‘(II) for which the cost with re-
17 spect to the construction, reconstruc-
18 tion, or erection of such property is
19 paid or incurred by such taxpayer,
20 and
21 ‘‘(iii) the original use of which, pursu-
22 ant to an interconnection agreement, com-
23 mences with a utility.
24 ‘‘(C) INTERCONNECTION AGREEMENT.—The
25 term ‘interconnection agreement’ means an
† HR 5376 EAS
276
1 agreement with a utility for the purposes of
2 interconnecting the energy property owned by
3 such taxpayer to the transmission or distribution
4 system of such utility.
5 ‘‘(D) UTILITY.—For purposes of this para-
6 graph, the term ‘utility’ means the owner or op-
7 erator of an electrical transmission or distribu-
8 tion system which is subject to the regulatory au-
9 thority of a State or political subdivision thereof,
10 any agency or instrumentality of the United
11 States, a public service or public utility commis-
12 sion or other similar body of any State or polit-
13 ical subdivision thereof, or the governing or rate-
14 making body of an electric cooperative.
15 ‘‘(E) SPECIAL RULE FOR INTERCONNECTION
16 PROPERTY.—In the case of expenses paid or in-
17 curred for interconnection property, amounts
18 otherwise chargeable to capital account with re-
19 spect to such expenses shall be reduced under
20 rules similar to the rules of section 50(c).’’.
21 (k) ENERGY PROJECTS, WAGE REQUIREMENTS, AND
22 APPRENTICESHIP REQUIREMENTS.—Section 48(a), as
23 amended by the preceding provisions of this Act, is amended
24 by adding at the end the following new paragraphs:
† HR 5376 EAS
277
1 ‘‘(9) INCREASED CREDIT AMOUNT FOR ENERGY
2 PROJECTS.—
3 ‘‘(A) IN GENERAL.—
4 ‘‘(i) RULE.—In the case of any energy
5 project which satisfies the requirements of
6 subparagraph (B), the amount of the credit
7 determined under this subsection (deter-
8 mined after the application of paragraphs
9 (1) through (8) and without regard to this
10 clause) shall be equal to such amount multi-
11 plied by 5.
12 ‘‘(ii) ENERGY PROJECT DEFINED.—For
13 purposes of this subsection, the term ‘energy
14 project’ means a project consisting of one or
15 more energy properties that are part of a
16 single project.
17 ‘‘(B) PROJECT REQUIREMENTS.—A project
18 meets the requirements of this subparagraph if it
19 is one of the following:
20 ‘‘(i) A project with a maximum net
21 output of less than 1 megawatt of electrical
22 (as measured in alternating current) or
23 thermal energy.
24 ‘‘(ii) A project the construction of
25 which begins before the date that is 60 days
† HR 5376 EAS
278
1 after the Secretary publishes guidance with
2 respect to the requirements of paragraphs
3 (10)(A) and (11).
4 ‘‘(iii) A project which satisfies the re-
5 quirements of paragraphs (10)(A) and (11).
6 ‘‘(10) PREVAILING WAGE REQUIREMENTS.—
7 ‘‘(A) IN GENERAL.—The requirements de-
8 scribed in this subparagraph with respect to any
9 energy project are that the taxpayer shall ensure
10 that any laborers and mechanics employed by
11 the taxpayer or any contractor or subcontractor
12 in—
13 ‘‘(i) the construction of such energy
14 project, and
15 ‘‘(ii) for the 5-year period beginning
16 on the date such project is originally placed
17 in service, the alteration or repair of such
18 project,
19 shall be paid wages at rates not less than the
20 prevailing rates for construction, alteration, or
21 repair of a similar character in the locality in
22 which such project is located as most recently de-
23 termined by the Secretary of Labor, in accord-
24 ance with subchapter IV of chapter 31 of title 40,
25 United States Code. Subject to subparagraph
† HR 5376 EAS
279
1 (C), for purposes of any determination under
2 paragraph (9)(A)(i) for the taxable year in
3 which the energy project is placed in service, the
4 taxpayer shall be deemed to satisfy the require-
5 ment under clause (ii) at the time such project
6 is placed in service.
7 ‘‘(B) CORRECTION AND PENALTY RELATED
8 TO FAILURE TO SATISFY WAGE REQUIRE-
9 MENTS.—Rules similar to the rules of section
10 45(b)(7)(B) shall apply.
11 ‘‘(C) RECAPTURE.—The Secretary shall, by
12 regulations or other guidance, provide for recap-
13 turing the benefit of any increase in the credit
14 allowed under this subsection by reason of this
15 paragraph with respect to any project which does
16 not satisfy the requirements under subparagraph
17 (A) (after application of subparagraph (B)) for
18 the period described in clause (ii) of subpara-
19 graph (A) (but which does not cease to be invest-
20 ment credit property within the meaning of sec-
21 tion 50(a)). The period and percentage of such
22 recapture shall be determined under rules simi-
23 lar to the rules of section 50(a).
24 ‘‘(11) APPRENTICESHIP REQUIREMENTS.—Rules
25 similar to the rules of section 45(b)(8) shall apply.’’.
† HR 5376 EAS
280
1 (l) DOMESTIC CONTENT; PHASEOUT FOR ELECTIVE
2 PAYMENT.—Section 48(a), as amended by the preceding
3 provisions of this Act, is amended by adding at the end
4 the following new paragraphs:
5 ‘‘(12) DOMESTIC CONTENT BONUS CREDIT
6 AMOUNT.—
7 ‘‘(A) IN GENERAL.—In the case of any en-
8 ergy project which satisfies the requirement
9 under subparagraph (B), for purposes of apply-
10 ing paragraph (2) with respect to such property,
11 the energy percentage shall be increased by the
12 applicable credit rate increase.
13 ‘‘(B) REQUIREMENT.—Rules similar to the
14 rules of section 45(b)(9)(B) shall apply.
15 ‘‘(C) APPLICABLE CREDIT RATE IN-
16 CREASE.—For purposes of subparagraph (A), the
17 applicable credit rate increase shall be—
18 ‘‘(i) in the case of an energy project
19 which does not satisfy the requirements of
20 paragraph (9)(B), 2 percentage points, and
21 ‘‘(ii) in the case of an energy project
22 which satisfies the requirements of para-
23 graph (9)(B), 10 percentage points.
24 ‘‘(13) PHASEOUT FOR ELECTIVE PAYMENT.—In
25 the case of a taxpayer making an election under sec-
† HR 5376 EAS
281
1 tion 6417 with respect to a credit under this section,
2 rules similar to the rules of section 45(b)(10) shall
3 apply.’’.
4 (m) SPECIAL RULE FOR PROPERTY FINANCED BY
5 TAX-EXEMPT BONDS.—Section 48(a)(4) is amended to read
6 as follows:
7 ‘‘(4) SPECIAL RULE FOR PROPERTY FINANCED BY
8 TAX-EXEMPT BONDS.—Rules similar to the rule under
9 section 45(b)(3) shall apply for purposes of this sec-
10 tion.’’.
11 (n) TREATMENT OF CERTAIN CONTRACTS INVOLVING
12 ENERGY STORAGE.—Section 7701(e) is amended—
13 (1) in paragraph (3)—
14 (A) in subparagraph (A)(i), by striking
15 ‘‘or’’ at the end of subclause (II), by striking
16 ‘‘and’’ at the end of subclause (III) and inserting
17 ‘‘or’’, and by adding at the end the following new
18 subclause:
19 ‘‘(IV) the operation of a storage
20 facility, and’’, and
21 (B) by adding at the end the following new
22 subparagraph:
23 ‘‘(F) STORAGE FACILITY.—For purposes of
24 subparagraph (A), the term ‘storage facility’
25 means a facility which uses energy storage tech-
† HR 5376 EAS
282
1 nology within the meaning of section 48(c)(6).’’,
2 and
3 (2) in paragraph (4), by striking ‘‘or water
4 treatment works facility’’ and inserting ‘‘water treat-
5 ment works facility, or storage facility’’.
6 (o) INCREASE IN CREDIT RATE FOR ENERGY COMMU-
7 NITIES.—Section 48(a), as amended by the preceding provi-
8 sions of this Act, is amended by adding at the end the fol-
9 lowing new paragraph:
10 ‘‘(14) INCREASE IN CREDIT RATE FOR ENERGY
11 COMMUNITIES.—
12 ‘‘(A) IN GENERAL.—In the case of any en-
13 ergy project that is placed in service within an
14 energy community (as defined in section
15 45(b)(11)(B), as applied by substituting ‘energy
16 project’ for ‘qualified facility’ each place it ap-
17 pears), for purposes of applying paragraph (2)
18 with respect to energy property which is part of
19 such project, the energy percentage shall be in-
20 creased by the applicable credit rate increase.
21 ‘‘(B) APPLICABLE CREDIT RATE IN-
22 CREASE.—For purposes of subparagraph (A), the
23 applicable credit rate increase shall be equal
24 to—
† HR 5376 EAS
283
1 ‘‘(i) in the case of any energy project
2 which does not satisfy the requirements of
3 paragraph (9)(B), 2 percentage points, and
4 ‘‘(ii) in the case of any energy project
5 which satisfies the requirements of para-
6 graph (9)(B), 10 percentage points.’’.
7 (p) REGULATIONS.—Section 48(a), as amended by the
8 preceding provisions of this Act, is amended by adding at
9 the end the following new paragraph:
10 ‘‘(15) REGULATIONS AND GUIDANCE.—The Sec-
11 retary shall issue such regulations or other guidance
12 as the Secretary determines necessary to carry out the
13 purposes of this subsection, including regulations or
14 other guidance which provides for requirements for
15 recordkeeping or information reporting for purposes
16 of administering the requirements of this subsection.’’.
17 (q) EFFECTIVE DATES.—
18 (1) IN GENERAL.—Except as provided in para-
19 graphs (2) and (3), the amendments made by this sec-
20 tion shall apply to property placed in service after
21 December 31, 2021.
22 (2) OTHER PROPERTY.—The amendments made
23 by subsections (f), (g), (h), (i), (j), (l), (n), and (o)
24 shall apply to property placed in service after Decem-
25 ber 31, 2022.
† HR 5376 EAS
284
1 (3) SPECIAL RULE FOR PROPERTY FINANCED BY
2 TAX-EXEMPT BONDS.—The amendments made by sub-
3 section (m) shall apply to property the construction
4 of which begins after the date of enactment of this
5 Act.
6 SEC. 13103. INCREASE IN ENERGY CREDIT FOR SOLAR AND
7 WIND FACILITIES PLACED IN SERVICE IN
8 CONNECTION WITH LOW-INCOME COMMU-
9 NITIES.
10 (a) IN GENERAL.—Section 48 is amended by adding
11 at the end the following new subsection:
12 ‘‘(e) SPECIAL RULES FOR CERTAIN SOLAR AND WIND
13 FACILITIES PLACED IN SERVICE IN CONNECTION WITH
14 LOW-INCOME COMMUNITIES.—
15 ‘‘(1) IN GENERAL.—In the case of any qualified
16 solar and wind facility with respect to which the Sec-
17 retary makes an allocation of environmental justice
18 solar and wind capacity limitation under paragraph
19 (4)—
20 ‘‘(A) the energy percentage otherwise deter-
21 mined under paragraph (2) or (5) of subsection
22 (a) with respect to any eligible property which
23 is part of such facility shall be increased by—
24 ‘‘(i) in the case of a facility described
25 in subclause (I) of paragraph (2)(A)(iii)
† HR 5376 EAS
285
1 and not described in subclause (II) of such
2 paragraph, 10 percentage points, and
3 ‘‘(ii) in the case of a facility described
4 in subclause (II) of paragraph (2)(A)(iii),
5 20 percentage points, and
6 ‘‘(B) the increase in the credit determined
7 under subsection (a) by reason of this subsection
8 for any taxable year with respect to all property
9 which is part of such facility shall not exceed the
10 amount which bears the same ratio to the
11 amount of such increase (determined without re-
12 gard to this subparagraph) as—
13 ‘‘(i) the environmental justice solar
14 and wind capacity limitation allocated to
15 such facility, bears to
16 ‘‘(ii) the total megawatt nameplate ca-
17 pacity of such facility, as measured in di-
18 rect current.
19 ‘‘(2) QUALIFIED SOLAR AND WIND FACILITY.—
20 For purposes of this subsection—
21 ‘‘(A) IN GENERAL.—The term ‘qualified
22 solar and wind facility’ means any facility—
23 ‘‘(i) which generates electricity solely
24 from property described in section 45(d)(1)
† HR 5376 EAS
286
1 or in clause (i) or (vi) of subsection
2 (a)(3)(A),
3 ‘‘(ii) which has a maximum net output
4 of less than 5 megawatts (as measured in
5 alternating current), and
6 ‘‘(iii) which—
7 ‘‘(I) is located in a low-income
8 community (as defined in section
9 45D(e)) or on Indian land (as defined
10 in section 2601(2) of the Energy Policy
11 Act of 1992 (25 U.S.C. 3501(2))), or
12 ‘‘(II) is part of a qualified low-in-
13 come residential building project or a
14 qualified low-income economic benefit
15 project.
16 ‘‘(B) QUALIFIED LOW-INCOME RESIDENTIAL
17 BUILDING PROJECT.—A facility shall be treated
18 as part of a qualified low-income residential
19 building project if—
20 ‘‘(i) such facility is installed on a resi-
21 dential rental building which participates
22 in a covered housing program (as defined in
23 section 41411(a) of the Violence Against
24 Women Act of 1994 (34 U.S.C.
25 12491(a)(3)), a housing assistance program
† HR 5376 EAS
287
1 administered by the Department of Agri-
2 culture under title V of the Housing Act of
3 1949, a housing program administered by a
4 tribally designated housing entity (as de-
5 fined in section 4(22) of the Native Amer-
6 ican Housing Assistance and Self-Deter-
7 mination Act of 1996 (25 U.S.C. 4103(22)))
8 or such other affordable housing programs
9 as the Secretary may provide, and
10 ‘‘(ii) the financial benefits of the elec-
11 tricity produced by such facility are allo-
12 cated equitably among the occupants of the
13 dwelling units of such building.
14 ‘‘(C) QUALIFIED LOW-INCOME ECONOMIC
15 BENEFIT PROJECT.—A facility shall be treated
16 as part of a qualified low-income economic ben-
17 efit project if at least 50 percent of the financial
18 benefits of the electricity produced by such facil-
19 ity are provided to households with income of—
20 ‘‘(i) less than 200 percent of the pov-
21 erty line (as defined in section
22 36B(d)(3)(A)) applicable to a family of the
23 size involved, or
† HR 5376 EAS
288
1 ‘‘(ii) less than 80 percent of area me-
2 dian gross income (as determined under sec-
3 tion 142(d)(2)(B)).
4 ‘‘(D) FINANCIAL BENEFIT.—For purposes of
5 subparagraphs (B) and (C), electricity acquired
6 at a below-market rate shall not fail to be taken
7 into account as a financial benefit.
8 ‘‘(3) ELIGIBLE PROPERTY.—For purposes of this
9 section, the term ‘eligible property’ means energy
10 property which—
11 ‘‘(A) is part of a facility described in sec-
12 tion 45(d)(1) for which an election was made
13 under subsection (a)(5), or
14 ‘‘(B) is described in clause (i) or (vi) of sub-
15 section (a)(3)(A),
16 including energy storage technology (as described in
17 subsection (a)(3)(A)(ix)) installed in connection with
18 such energy property.
19 ‘‘(4) ALLOCATIONS.—
20 ‘‘(A) IN GENERAL.—Not later than 180
21 days after the date of enactment of this sub-
22 section, the Secretary shall establish a program
23 to allocate amounts of environmental justice
24 solar and wind capacity limitation to qualified
25 solar and wind facilities. In establishing such
† HR 5376 EAS
289
1 program and to carry out the purposes of this
2 subsection, the Secretary shall provide procedures
3 to allow for an efficient allocation process, in-
4 cluding, when determined appropriate, consider-
5 ation of multiple projects in a single application
6 if such projects will be placed in service by a sin-
7 gle taxpayer.
8 ‘‘(B) LIMITATION.—The amount of environ-
9 mental justice solar and wind capacity limita-
10 tion allocated by the Secretary under subpara-
11 graph (A) during any calendar year shall not
12 exceed the annual capacity limitation with re-
13 spect to such year.
14 ‘‘(C) ANNUAL CAPACITY LIMITATION.—For
15 purposes of this paragraph, the term ‘annual ca-
16 pacity limitation’ means 1.8 gigawatts of direct
17 current capacity for each of calendar years 2023
18 and 2024, and zero thereafter.
19 ‘‘(D) CARRYOVER OF UNUSED LIMITA-
20 TION.—If the annual capacity limitation for any
21 calendar year exceeds the aggregate amount allo-
22 cated for such year under this paragraph, such
23 limitation for the succeeding calendar year shall
24 be increased by the amount of such excess. No
25 amount may be carried under the preceding sen-
† HR 5376 EAS
290
1 tence to any calendar year after 2024 except as
2 provided in section 48E(h)(4)(D)(ii).
3 ‘‘(E) PLACED IN SERVICE DEADLINE.—
4 ‘‘(i) IN GENERAL.—Paragraph (1)
5 shall not apply with respect to any property
6 which is placed in service after the date that
7 is 4 years after the date of the allocation
8 with respect to the facility of which such
9 property is a part.
10 ‘‘(ii) APPLICATION OF CARRYOVER.—
11 Any amount of environmental justice solar
12 and wind capacity limitation which expires
13 under clause (i) during any calendar year
14 shall be taken into account as an excess de-
15 scribed in subparagraph (D) (or as an in-
16 crease in such excess) for such calendar
17 year, subject to the limitation imposed by
18 the last sentence of such subparagraph.
19 ‘‘(5) RECAPTURE.—The Secretary shall, by regu-
20 lations or other guidance, provide for recapturing the
21 benefit of any increase in the credit allowed under
22 subsection (a) by reason of this subsection with re-
23 spect to any property which ceases to be property eli-
24 gible for such increase (but which does not cease to be
25 investment credit property within the meaning of sec-
† HR 5376 EAS
291
1 tion 50(a)). The period and percentage of such recap-
2 ture shall be determined under rules similar to the
3 rules of section 50(a). To the extent provided by the
4 Secretary, such recapture may not apply with respect
5 to any property if, within 12 months after the date
6 the taxpayer becomes aware (or reasonably should
7 have become aware) of such property ceasing to be
8 property eligible for such increase, the eligibility of
9 such property for such increase is restored. The pre-
10 ceding sentence shall not apply more than once with
11 respect to any facility.’’.
12 (b) EFFECTIVE DATE.—The amendments made by this
13 section shall take effect on January 1, 2023.
14 SEC. 13104. EXTENSION AND MODIFICATION OF CREDIT
15 FOR CARBON OXIDE SEQUESTRATION.
16 (a) MODIFICATION OF CARBON OXIDE CAPTURE RE-
17 QUIREMENTS.—
18 (1) IN GENERAL.—Section 45Q(d) is amended to
19 read as follows:
20 ‘‘(d) QUALIFIED FACILITY.—For purposes of this sec-
21 tion, the term ‘qualified facility’ means any industrial fa-
22 cility or direct air capture facility—
23 ‘‘(1) the construction of which begins before Jan-
24 uary 1, 2033, and either—
† HR 5376 EAS
292
1 ‘‘(A) construction of carbon capture equip-
2 ment begins before such date, or
3 ‘‘(B) the original planning and design for
4 such facility includes installation of carbon cap-
5 ture equipment, and
6 ‘‘(2) which—
7 ‘‘(A) in the case of a direct air capture fa-
8 cility, captures not less than 1,000 metric tons of
9 qualified carbon oxide during the taxable year,
10 ‘‘(B) in the case of an electricity generating
11 facility—
12 ‘‘(i) captures not less than 18,750 met-
13 ric tons of qualified carbon oxide during the
14 taxable year, and
15 ‘‘(ii) with respect to any carbon cap-
16 ture equipment for the applicable electric
17 generating unit at such facility, has a cap-
18 ture design capacity of not less than 75 per-
19 cent of the baseline carbon oxide production
20 of such unit, or
21 ‘‘(C) in the case of any other facility, cap-
22 tures not less than 12,500 metric tons of quali-
23 fied carbon oxide during the taxable year.’’.
24 (2) DEFINITIONS.—
† HR 5376 EAS
293
1 (A) IN GENERAL.—Section 45Q(e) is
2 amended—
3 (i) by redesignating paragraphs (1)
4 through (3) as paragraphs (3) through (5),
5 respectively, and
6 (ii) by inserting after ‘‘For purposes of
7 this section—’’ the following new para-
8 graphs:
9 ‘‘(1) APPLICABLE ELECTRIC GENERATING
10 UNIT.—The term ‘applicable electric generating unit’
11 means the principal electric generating unit for which
12 the carbon capture equipment is originally planned
13 and designed.
14 ‘‘(2) BASELINE CARBON OXIDE PRODUCTION.—
15 ‘‘(A) IN GENERAL.—The term ‘baseline car-
16 bon oxide production’ means either of the fol-
17 lowing:
18 ‘‘(i) In the case of an applicable elec-
19 tric generating unit which was originally
20 placed in service more than 1 year prior to
21 the date on which construction of the carbon
22 capture equipment begins, the average an-
23 nual carbon oxide production, by mass,
24 from such unit during—
† HR 5376 EAS
294
1 ‘‘(I) in the case of an applicable
2 electric generating unit which was
3 originally placed in service more than
4 1 year prior to the date on which con-
5 struction of the carbon capture equip-
6 ment begins and on or after the date
7 which is 3 years prior to the date on
8 which construction of such equipment
9 begins, the period beginning on the
10 date such unit was placed in service
11 and ending on the date on which con-
12 struction of such equipment began, and
13 ‘‘(II) in the case of an applicable
14 electric generating unit which was
15 originally placed in service more than
16 3 years prior to the date on which con-
17 struction of the carbon capture equip-
18 ment begins, the 3 years with the high-
19 est annual carbon oxide production
20 during the 12-year period preceding
21 the date on which construction of such
22 equipment began.
23 ‘‘(ii) In the case of an applicable elec-
24 tric generating unit which—
† HR 5376 EAS
295
1 ‘‘(I) as of the date on which con-
2 struction of the carbon capture equip-
3 ment begins, is not yet placed in serv-
4 ice, or
5 ‘‘(II) was placed in service during
6 the 1-year period prior to the date on
7 which construction of the carbon cap-
8 ture equipment begins,
9 the designed annual carbon oxide produc-
10 tion, by mass, as determined based on an
11 assumed capacity factor of 60 percent.
12 ‘‘(B) CAPACITY FACTOR.—The term ‘capac-
13 ity factor’ means the ratio (expressed as a per-
14 centage) of the actual electric output from the
15 applicable electric generating unit to the poten-
16 tial electric output from such unit.’’.
17 (B) CONFORMING AMENDMENT.—Section
18 142(o)(1)(B) is amended by striking ‘‘section
19 45Q(e)(1)’’ and inserting ‘‘section 45Q(e)(3)’’.
20 (b) MODIFIED APPLICABLE DOLLAR AMOUNT.—Sec-
21 tion 45Q(b)(1)(A) is amended—
22 (1) in clause (i)—
23 (A) in subclause (I), by striking ‘‘the dollar
24 amount’’ and all that follows through ‘‘such pe-
25 riod’’ and inserting ‘‘$17’’, and
† HR 5376 EAS
296
1 (B) in subclause (II), by striking ‘‘the dol-
2 lar amount’’ and all that follows through ‘‘such
3 period’’ and inserting ‘‘$12’’, and
4 (2) in clause (ii)—
5 (A) in subclause (I), by striking ‘‘$50’’ and
6 inserting ‘‘$17’’, and
7 (B) in subclause (II), by striking ‘‘$35’’ and
8 inserting ‘‘$12’’.
9 (c) DETERMINATION OF APPLICABLE DOLLAR
10 AMOUNT.—
11 (1) IN GENERAL.—Section 45Q(b)(1), as amend-
12 ed by the preceding provisions of this Act, is amend-
13 ed—
14 (A) by redesignating subparagraph (B) as
15 subparagraph (D), and
16 (B) by inserting after subparagraph (A) the
17 following new subparagraphs:
18 ‘‘(B) SPECIAL RULE FOR DIRECT AIR CAP-
19 TURE FACILITIES.—In the case of any qualified
20 facility described in subsection (d)(2)(A) which
21 is placed in service after December 31, 2022, the
22 applicable dollar amount shall be an amount
23 equal to the applicable dollar amount otherwise
24 determined with respect to such qualified facility
† HR 5376 EAS
297
1 under subparagraph (A), except that such sub-
2 paragraph shall be applied—
3 ‘‘(i) by substituting ‘$36’ for ‘$17’ each
4 place it appears, and
5 ‘‘(ii) by substituting ‘$26’ for ‘$12’
6 each place it appears.
7 ‘‘(C) APPLICABLE DOLLAR AMOUNT FOR AD-
8 DITIONAL CARBON CAPTURE EQUIPMENT.—In the
9 case of any qualified facility which is placed in
10 service before January 1, 2023, if any additional
11 carbon capture equipment is installed at such fa-
12 cility and such equipment is placed in service
13 after December 31, 2022, the applicable dollar
14 amount shall be an amount equal to the applica-
15 ble dollar amount otherwise determined under
16 this paragraph, except that subparagraph (B)
17 shall be applied—
18 ‘‘(i) by substituting ‘before January 1,
19 2023’ for ‘after December 31, 2022’, and
20 ‘‘(ii) by substituting ‘the additional
21 carbon capture equipment installed at such
22 qualified facility’ for ‘such qualified facil-
23 ity’.’’.
24 (2) CONFORMING AMENDMENTS.—
† HR 5376 EAS
298
1 (A) Section 45Q(b)(1)(A) is amended by
2 striking ‘‘The applicable dollar amount’’ and in-
3 serting ‘‘Except as provided in subparagraph
4 (B) or (C), the applicable dollar amount’’.
5 (B) Section 45Q(b)(1)(D), as redesignated
6 by paragraph (1)(A), is amended by striking
7 ‘‘subparagraph (A)’’ and inserting ‘‘subpara-
8 graph (A), (B), or (C)’’.
9 (d) WAGE AND APPRENTICESHIP REQUIREMENTS.—
10 Section 45Q is amended by redesignating subsection (h) as
11 subsection (i) and inserting after subsection (g) following
12 new subsection:
13 ‘‘(h) INCREASED CREDIT AMOUNT FOR QUALIFIED FA-
14 CILITIES AND CARBON CAPTURE EQUIPMENT.—
15 ‘‘(1) IN GENERAL.—In the case of any qualified
16 facility or any carbon capture equipment which sat-
17 isfy the requirements of paragraph (2), the amount of
18 the credit determined under subsection (a) shall be
19 equal to such amount (determined without regard to
20 this sentence) multiplied by 5.
21 ‘‘(2) REQUIREMENTS.—The requirements de-
22 scribed in this paragraph are that—
23 ‘‘(A) with respect to any qualified facility
24 the construction of which begins on or after the
25 date that is 60 days after the Secretary publishes
† HR 5376 EAS
299
1 guidance with respect to the requirements of
2 paragraphs (3)(A) and (4), as well as any car-
3 bon capture equipment placed in service at such
4 facility—
5 ‘‘(i) subject to subparagraph (B) of
6 paragraph (3), the taxpayer satisfies the re-
7 quirements under subparagraph (A) of such
8 paragraph with respect to such facility and
9 equipment, and
10 ‘‘(ii) the taxpayer satisfies the require-
11 ments under paragraph (4) with respect to
12 the construction of such facility and equip-
13 ment,
14 ‘‘(B) with respect to any carbon capture
15 equipment the construction of which begins on or
16 after the date that is 60 days after the Secretary
17 publishes guidance with respect to the require-
18 ments of paragraphs (3)(A) and (4), and which
19 is installed at a qualified facility the construc-
20 tion of which began prior to such date—
21 ‘‘(i) subject to subparagraph (B) of
22 paragraph (3), the taxpayer satisfies the re-
23 quirements under subparagraph (A) of such
24 paragraph with respect to such equipment,
25 and
† HR 5376 EAS
300
1 ‘‘(ii) the taxpayer satisfies the require-
2 ments under paragraph (4) with respect to
3 the construction of such equipment, or
4 ‘‘(C) the construction of carbon capture
5 equipment begins prior to the date that is 60
6 days after the Secretary publishes guidance with
7 respect to the requirements of paragraphs (3)(A)
8 and (4), and such equipment is installed at a
9 qualified facility the construction of which begins
10 prior to such date.
11 ‘‘(3) PREVAILING WAGE REQUIREMENTS.—
12 ‘‘(A) IN GENERAL.—The requirements de-
13 scribed in this subparagraph with respect to any
14 qualified facility and any carbon capture equip-
15 ment placed in service at such facility are that
16 the taxpayer shall ensure that any laborers and
17 mechanics employed by the taxpayer or any con-
18 tractor or subcontractor in—
19 ‘‘(i) the construction of such facility or
20 equipment, and
21 ‘‘(ii) with respect to any taxable year,
22 for any portion of such taxable year which
23 is within the period described in paragraph
24 (3)(A) or (4)(A) of subsection (a), the alter-
† HR 5376 EAS
301
1 ation or repair of such facility or such
2 equipment,
3 shall be paid wages at rates not less than the
4 prevailing rates for construction, alteration, or
5 repair of a similar character in the locality in
6 which such facility and equipment are located as
7 most recently determined by the Secretary of
8 Labor, in accordance with subchapter IV of
9 chapter 31 of title 40, United States Code. For
10 purposes of determining an increased credit
11 amount under paragraph (1) for a taxable year,
12 the requirement under clause (ii) of this sub-
13 paragraph is applied to such taxable year in
14 which the alteration or repair of qualified facil-
15 ity occurs.
16 ‘‘(B) CORRECTION AND PENALTY RELATED
17 TO FAILURE TO SATISFY WAGE REQUIRE-
18 MENTS.—Rules similar to the rules of section
19 45(b)(7)(B) shall apply.
20 ‘‘(4) APPRENTICESHIP REQUIREMENTS.—Rules
21 similar to the rules of section 45(b)(8) shall apply.
22 ‘‘(5) REGULATIONS AND GUIDANCE.—The Sec-
23 retary shall issue such regulations or other guidance
24 as the Secretary determines necessary to carry out the
25 purposes of this subsection, including regulations or
† HR 5376 EAS
302
1 other guidance which provides for requirements for
2 recordkeeping or information reporting for purposes
3 of administering the requirements of this subsection.’’.
4 (e) CREDIT REDUCED FOR TAX-EXEMPT BONDS.—Sec-
5 tion 45Q(f) is amended—
6 (1) by striking the second paragraph (3), as
7 added at the end of such section by section 80402(e)
8 of the Infrastructure Investment and Jobs Act (Public
9 Law 117-58), and
10 (2) by adding at the end the following new para-
11 graph:
12 ‘‘(8) CREDIT REDUCED FOR TAX-EXEMPT
13 BONDS.—Rules similar to the rule under section
14 45(b)(3) shall apply for purposes of this section.’’.
15 (f) APPLICATION OF SECTION FOR CERTAIN CARBON
16 CAPTURE EQUIPMENT.—Section 45Q(g) is amended by in-
17 serting ‘‘the earlier of January 1, 2023, and’’ before ‘‘the
18 end of the calendar year’’.
19 (g) ELECTION.—Section 45Q(f), as amended by sub-
20 section (e), is amended by adding at the end the following
21 new paragraph:
22 ‘‘(9) ELECTION.—For purposes of paragraphs
23 (3) and (4) of subsection (a), a person described in
24 paragraph (3)(A)(ii) may elect, at such time and in
25 such manner as the Secretary may prescribe, to have
† HR 5376 EAS
303
1 the 12–year period begin on the first day of the first
2 taxable year in which a credit under this section is
3 claimed with respect to carbon capture equipment
4 which is originally placed in service at a qualified fa-
5 cility on or after the date of the enactment of the Bi-
6 partisan Budget Act of 2018 (after application of
7 paragraph (6), where applicable) if—
8 ‘‘(A) no taxpayer claimed a credit under
9 this section with respect to such carbon capture
10 equipment for any prior taxable year,
11 ‘‘(B) the qualified facility at which such
12 carbon capture equipment is placed in service is
13 located in an area affected by a federally-de-
14 clared disaster (as defined by section
15 165(i)(5)(A)) after the carbon capture equipment
16 is originally placed in service, and
17 ‘‘(C) such federally-declared disaster results
18 in a cessation of the operation of the qualified
19 facility or the carbon capture equipment after
20 such equipment is originally placed in service.’’.
21 (h) REGULATIONS FOR BASELINE CARBON OXIDE
22 PRODUCTION.—Subsection (i) of section 45Q, as redesig-
23 nated by subsection (d), is amended—
24 (1) in paragraph (1), by striking ‘‘and’’,
† HR 5376 EAS
304
1 (2) in paragraph (2), by striking the period at
2 the end and inserting ‘‘, and’’, and
3 (3) by adding at the end the following new para-
4 graph:
5 ‘‘(3) for purposes of subsection (d)(2)(B)(ii), ad-
6 just the baseline carbon oxide production with respect
7 to any applicable electric generating unit at any elec-
8 tricity generating facility if, after the date on which
9 the carbon capture equipment is placed in service,
10 modifications which are chargeable to capital account
11 are made to such unit which result in a significant
12 increase or decrease in carbon oxide production.’’.
13 (i) EFFECTIVE DATES.—
14 (1) IN GENERAL.—Except as provided in para-
15 graphs (2), (3), and (4), the amendments made by
16 this section shall apply to facilities or equipment
17 placed in service after December 31, 2022.
18 (2) MODIFICATION OF CARBON OXIDE CAPTURE
19 REQUIREMENTS.—The amendments made by sub-
20 section (a) shall apply to facilities or equipment the
21 construction of which begins after the date of enact-
22 ment of this Act.
23 (3) APPLICATION OF SECTION FOR CERTAIN CAR-
24 BON CAPTURE EQUIPMENT.—The amendments made
† HR 5376 EAS
305
1 by subsection (f) shall take effect on the date of enact-
2 ment of this Act.
3 (4) ELECTION.—The amendments made by sub-
4 section (g) shall apply to carbon oxide captured and
5 disposed of after December 31, 2021.
6 SEC. 13105. ZERO-EMISSION NUCLEAR POWER PRODUCTION
7 CREDIT.
8 (a) IN GENERAL.—Subpart D of part IV of subchapter
9 A of chapter 1 is amended by adding at the end the fol-
10 lowing new section:
11 ‘‘SEC. 45U. ZERO-EMISSION NUCLEAR POWER PRODUCTION
12 CREDIT.
13 ‘‘(a) AMOUNT OF CREDIT.—For purposes of section 38,
14 the zero-emission nuclear power production credit for any
15 taxable year is an amount equal to the amount by which—
16 ‘‘(1) the product of—
17 ‘‘(A) 0.3 cents, multiplied by
18 ‘‘(B) the kilowatt hours of electricity—
19 ‘‘(i) produced by the taxpayer at a
20 qualified nuclear power facility, and
21 ‘‘(ii) sold by the taxpayer to an unre-
22 lated person during the taxable year, ex-
23 ceeds
24 ‘‘(2) the reduction amount for such taxable year.
25 ‘‘(b) DEFINITIONS.—
† HR 5376 EAS
306
1 ‘‘(1) QUALIFIED NUCLEAR POWER FACILITY.—
2 For purposes of this section, the term ‘qualified nu-
3 clear power facility’ means any nuclear facility—
4 ‘‘(A) which is owned by the taxpayer and
5 which uses nuclear energy to produce electricity,
6 ‘‘(B) which is not an advanced nuclear
7 power facility as defined in subsection (d)(1) of
8 section 45J, and
9 ‘‘(C) which is placed in service before the
10 date of the enactment of this section.
11 ‘‘(2) REDUCTION AMOUNT.—
12 ‘‘(A) IN GENERAL.—For purposes of this
13 section, the term ‘reduction amount’ means, with
14 respect to any qualified nuclear power facility
15 for any taxable year, the amount equal to the
16 lesser of—
17 ‘‘(i) the amount determined under sub-
18 section (a)(1), or
19 ‘‘(ii) the amount equal to 16 percent of
20 the excess of—
21 ‘‘(I) subject to subparagraph (B),
22 the gross receipts from any electricity
23 produced by such facility (including
24 any electricity services or products
25 provided in conjunction with the elec-
† HR 5376 EAS
307
1 tricity produced by such facility) and
2 sold to an unrelated person during
3 such taxable year, over
4 ‘‘(II) the amount equal to the
5 product of—
6 ‘‘(aa) 2.5 cents, multiplied
7 by
8 ‘‘(bb) the amount determined
9 under subsection (a)(1)(B).
10 ‘‘(B) TREATMENT OF CERTAIN RECEIPTS.—
11 ‘‘(i) IN GENERAL.—Subject to clause
12 (iii), the amount determined under sub-
13 paragraph (A)(ii)(I) shall include any
14 amount received by the taxpayer during the
15 taxable year with respect to the qualified
16 nuclear power facility from a zero-emission
17 credit program. For purposes of deter-
18 mining the amount received during such
19 taxable year, the taxpayer shall take into
20 account any reductions required under such
21 program.
22 ‘‘(ii) ZERO-EMISSION CREDIT PRO-
23 GRAM.—For purposes of this subparagraph,
24 the term ‘zero-emission credit program’
25 means any payments with respect to a
† HR 5376 EAS
308
1 qualified nuclear power facility as a result
2 of any Federal, State or local government
3 program for, in whole or in part, the zero-
4 emission, zero-carbon, or air quality at-
5 tributes of any portion of the electricity
6 produced by such facility.
7 ‘‘(iii) EXCLUSION.—For purposes of
8 clause (i), any amount received by the tax-
9 payer from a zero-emission credit program
10 shall be excluded from the amount deter-
11 mined under subparagraph (A)(ii)(I) if the
12 full amount of the credit calculated pursu-
13 ant to subsection (a) (determined without
14 regard to this subparagraph) is used to re-
15 duce payments from such zero-emission
16 credit program.
17 ‘‘(3) ELECTRICITY.—For purposes of this section,
18 the term ‘electricity’ means the energy produced by a
19 qualified nuclear power facility from the conversion of
20 nuclear fuel into electric power.
21 ‘‘(c) OTHER RULES.—
22 ‘‘(1) INFLATION ADJUSTMENT.—The 0.3 cent
23 amount in subsection (a)(1)(A) and the 2.5 cent
24 amount in subsection (b)(2)(A)(ii)(II)(aa) shall each
25 be adjusted by multiplying such amount by the infla-
† HR 5376 EAS
309
1 tion adjustment factor (as determined under section
2 45(e)(2), as applied by substituting ‘calendar year
3 2023’ for ‘calendar year 1992’ in subparagraph (B)
4 thereof) for the calendar year in which the sale occurs.
5 If the 0.3 cent amount as increased under this para-
6 graph is not a multiple of 0.05 cent, such amount
7 shall be rounded to the nearest multiple of 0.05 cent.
8 If the 2.5 cent amount as increased under this para-
9 graph is not a multiple of 0.1 cent, such amount shall
10 be rounded to the nearest multiple of 0.1 cent.
11 ‘‘(2) SPECIAL RULES.—Rules similar to the rules
12 of paragraphs (1), (3), (4), and (5) of section 45(e)
13 shall apply for purposes of this section.
14 ‘‘(d) WAGE REQUIREMENTS.—
15 ‘‘(1) INCREASED CREDIT AMOUNT FOR QUALI-
16 FIED NUCLEAR POWER FACILITIES.—In the case of
17 any qualified nuclear power facility which satisfies
18 the requirements of paragraph (2)(A), the amount of
19 the credit determined under subsection (a) shall be
20 equal to such amount (as determined without regard
21 to this sentence) multiplied by 5.
22 ‘‘(2) PREVAILING WAGE REQUIREMENTS.—
23 ‘‘(A) IN GENERAL.—The requirements de-
24 scribed in this subparagraph with respect to any
25 qualified nuclear power facility are that the tax-
† HR 5376 EAS
310
1 payer shall ensure that any laborers and me-
2 chanics employed by the taxpayer or any con-
3 tractor or subcontractor in the alteration or re-
4 pair of such facility shall be paid wages at rates
5 not less than the prevailing rates for alteration
6 or repair of a similar character in the locality
7 in which such facility is located as most recently
8 determined by the Secretary of Labor, in accord-
9 ance with subchapter IV of chapter 31 of title 40,
10 United States Code.
11 ‘‘(B) CORRECTION AND PENALTY RELATED
12 TO FAILURE TO SATISFY WAGE REQUIRE-
13 MENTS.—Rules similar to the rules of section
14 45(b)(7)(B) shall apply.
15 ‘‘(3) REGULATIONS AND GUIDANCE.—The Sec-
16 retary shall issue such regulations or other guidance
17 as the Secretary determines necessary to carry out the
18 purposes of this subsection, including regulations or
19 other guidance which provides for requirements for
20 recordkeeping or information reporting for purposes
21 of administering the requirements of this subsection.
22 ‘‘(e) TERMINATION.—This section shall not apply to
23 taxable years beginning after December 31, 2032.’’.
24 (b) CONFORMING AMENDMENTS.—
25 (1) Section 38(b) is amended—
† HR 5376 EAS
311
1 (A) in paragraph (32), by striking ‘‘plus’’
2 at the end,
3 (B) in paragraph (33), by striking the pe-
4 riod at the end and inserting ‘‘, plus’’, and
5 (C) by adding at the end the following new
6 paragraph:
7 ‘‘(34) the zero-emission nuclear power production
8 credit determined under section 45U(a).’’.
9 (2) The table of sections for subpart D of part
10 IV of subchapter A of chapter 1 is amended by adding
11 at the end the following new item:
‘‘Sec. 45U. Zero-emission nuclear power production credit.’’.
12 (c) EFFECTIVE DATE.—This section shall apply to
13 electricity produced and sold after December 31, 2023, in
14 taxable years beginning after such date.
15 PART 2—CLEAN FUELS
16 SEC. 13201. EXTENSION OF INCENTIVES FOR BIODIESEL,
17 RENEWABLE DIESEL AND ALTERNATIVE
18 FUELS.
19 (a) BIODIESEL AND RENEWABLE DIESEL CREDIT.—
20 Section 40A(g) is amended by striking ‘‘December 31,
21 2022’’ and inserting ‘‘December 31, 2024’’.
22 (b) BIODIESEL MIXTURE CREDIT.—
23 (1) IN GENERAL.—Section 6426(c)(6) is amend-
24 ed by striking ‘‘December 31, 2022’’ and inserting
25 ‘‘December 31, 2024’’.
† HR 5376 EAS
312
1 (2) FUELS NOT USED FOR TAXABLE PUR-
2 POSES.—Section 6427(e)(6)(B) is amended by strik-
3 ing ‘‘December 31, 2022’’ and inserting ‘‘December
4 31, 2024’’.
5 (c) ALTERNATIVE FUEL CREDIT.—Section 6426(d)(5)
6 is amended by striking ‘‘December 31, 2021’’ and inserting
7 ‘‘December 31, 2024’’.
8 (d) ALTERNATIVE FUEL MIXTURE CREDIT.—Section
9 6426(e)(3) is amended by striking ‘‘December 31, 2021’’
10 and inserting ‘‘December 31, 2024’’.
11 (e) PAYMENTS FOR ALTERNATIVE FUELS.—Section
12 6427(e)(6)(C) is amended by striking ‘‘December 31, 2021’’
13 and inserting ‘‘December 31, 2024’’.
14 (f) EFFECTIVE DATE.—The amendments made by this
15 section shall apply to fuel sold or used after December 31,
16 2021.
17 (g) SPECIAL RULE.—In the case of any alternative fuel
18 credit properly determined under section 6426(d) of the In-
19 ternal Revenue Code of 1986 for the period beginning on
20 January 1, 2022, and ending with the close of the last cal-
21 endar quarter beginning before the date of the enactment
22 of this Act, such credit shall be allowed, and any refund
23 or payment attributable to such credit (including any pay-
24 ment under section 6427(e) of such Code) shall be made,
25 only in such manner as the Secretary of the Treasury (or
† HR 5376 EAS
313
1 the Secretary’s delegate) shall provide. Such Secretary shall
2 issue guidance within 30 days after the date of the enact-
3 ment of this Act providing for a one-time submission of
4 claims covering periods described in the preceding sentence.
5 Such guidance shall provide for a 180-day period for the
6 submission of such claims (in such manner as prescribed
7 by such Secretary) to begin not later than 30 days after
8 such guidance is issued. Such claims shall be paid by such
9 Secretary not later than 60 days after receipt. If such Sec-
10 retary has not paid pursuant to a claim filed under this
11 subsection within 60 days after the date of the filing of such
12 claim, the claim shall be paid with interest from such date
13 determined by using the overpayment rate and method
14 under section 6621 of such Code.
15 SEC. 13202. EXTENSION OF SECOND GENERATION BIOFUEL
16 INCENTIVES.
17 (a) IN GENERAL.—Section 40(b)(6)(J)(i) is amended
18 by striking ‘‘2022’’ and inserting ‘‘2025’’.
19 (b) EFFECTIVE DATE.—The amendment made by sub-
20 section (a) shall apply to qualified second generation biofuel
21 production after December 31, 2021.
22 SEC. 13203. SUSTAINABLE AVIATION FUEL CREDIT.
23 (a) IN GENERAL.—Subpart D of part IV of subchapter
24 A of chapter 1 is amended by inserting after section 40A
25 the following new section:
† HR 5376 EAS
314
1 ‘‘SEC. 40B. SUSTAINABLE AVIATION FUEL CREDIT.
2 ‘‘(a) IN GENERAL.—For purposes of section 38, the
3 sustainable aviation fuel credit determined under this sec-
4 tion for the taxable year is, with respect to any sale or use
5 of a qualified mixture which occurs during such taxable
6 year, an amount equal to the product of—
7 ‘‘(1) the number of gallons of sustainable avia-
8 tion fuel in such mixture, multiplied by
9 ‘‘(2) the sum of—
10 ‘‘(A) $1.25, plus
11 ‘‘(B) the applicable supplementary amount
12 with respect to such sustainable aviation fuel.
13 ‘‘(b) APPLICABLE SUPPLEMENTARY AMOUNT.—For
14 purposes of this section, the term ‘applicable supplementary
15 amount’ means, with respect to any sustainable aviation
16 fuel, an amount equal to $0.01 for each percentage point
17 by which the lifecycle greenhouse gas emissions reduction
18 percentage with respect to such fuel exceeds 50 percent. In
19 no event shall the applicable supplementary amount deter-
20 mined under this subsection exceed $0.50.
21 ‘‘(c) QUALIFIED MIXTURE.—For purposes of this sec-
22 tion, the term ‘qualified mixture’ means a mixture of sus-
23 tainable aviation fuel and kerosene if—
24 ‘‘(1) such mixture is produced by the taxpayer in
25 the United States,
† HR 5376 EAS
315
1 ‘‘(2) such mixture is used by the taxpayer (or
2 sold by the taxpayer for use) in an aircraft,
3 ‘‘(3) such sale or use is in the ordinary course
4 of a trade or business of the taxpayer, and
5 ‘‘(4) the transfer of such mixture to the fuel tank
6 of such aircraft occurs in the United States.
7 ‘‘(d) SUSTAINABLE AVIATION FUEL.—
8 ‘‘(1) IN GENERAL.—For purposes of this section,
9 the term ‘sustainable aviation fuel’ means liquid fuel,
10 the portion of which is not kerosene, which—
11 ‘‘(A) meets the requirements of—
12 ‘‘(i) ASTM International Standard
13 D7566, or
14 ‘‘(ii) the Fischer Tropsch provisions of
15 ASTM International Standard D1655,
16 Annex A1,
17 ‘‘(B) is not derived from coprocessing an
18 applicable material (or materials derived from
19 an applicable material) with a feedstock which is
20 not biomass,
21 ‘‘(C) is not derived from palm fatty acid
22 distillates or petroleum, and
23 ‘‘(D) has been certified in accordance with
24 subsection (e) as having a lifecycle greenhouse
† HR 5376 EAS
316
1 gas emissions reduction percentage of at least 50
2 percent.
3 ‘‘(2) DEFINITIONS.—In this subsection—
4 ‘‘(A) APPLICABLE MATERIAL.—The term
5 ‘applicable material’ means—
6 ‘‘(i) monoglycerides, diglycerides, and
7 triglycerides,
8 ‘‘(ii) free fatty acids, and
9 ‘‘(iii) fatty acid esters.
10 ‘‘(B) BIOMASS.—The term ‘biomass’ has the
11 same meaning given such term in section
12 45K(c)(3).
13 ‘‘(e) LIFECYCLE GREENHOUSE GAS EMISSIONS RE-
14 DUCTION PERCENTAGE.—For purposes of this section, the
15 term ‘lifecycle greenhouse gas emissions reduction percent-
16 age’ means, with respect to any sustainable aviation fuel,
17 the percentage reduction in lifecycle greenhouse gas emis-
18 sions achieved by such fuel as compared with petroleum-
19 based jet fuel, as defined in accordance with—
20 ‘‘(1) the most recent Carbon Offsetting and Re-
21 duction Scheme for International Aviation which has
22 been adopted by the International Civil Aviation Or-
23 ganization with the agreement of the United States,
24 or
† HR 5376 EAS
317
1 ‘‘(2) any similar methodology which satisfies the
2 criteria under section 211(o)(1)(H) of the Clean Air
3 Act (42 U.S.C. 7545(o)(1)(H)), as in effect on the
4 date of enactment of this section.
5 ‘‘(f) REGISTRATION OF SUSTAINABLE AVIATION FUEL
6 PRODUCERS.—No credit shall be allowed under this section
7 with respect to any sustainable aviation fuel unless the pro-
8 ducer or importer of such fuel—
9 ‘‘(1) is registered with the Secretary under sec-
10 tion 4101, and
11 ‘‘(2) provides—
12 ‘‘(A) certification (in such form and man-
13 ner as the Secretary shall prescribe) from an un-
14 related party demonstrating compliance with—
15 ‘‘(i) any general requirements, supply
16 chain traceability requirements, and infor-
17 mation transmission requirements estab-
18 lished under the Carbon Offsetting and Re-
19 duction Scheme for International Aviation
20 described in paragraph (1) of subsection (e),
21 or
22 ‘‘(ii) in the case of any methodology es-
23 tablished under paragraph (2) of such sub-
24 section, requirements similar to the require-
25 ments described in clause (i), and
† HR 5376 EAS
318
1 ‘‘(B) such other information with respect to
2 such fuel as the Secretary may require for pur-
3 poses of carrying out this section.
4 ‘‘(g) COORDINATION WITH CREDIT AGAINST EXCISE
5 TAX.—The amount of the credit determined under this sec-
6 tion with respect to any sustainable aviation fuel shall,
7 under rules prescribed by the Secretary, be properly reduced
8 to take into account any benefit provided with respect to
9 such sustainable aviation fuel solely by reason of the appli-
10 cation of section 6426 or 6427(e).
11 ‘‘(h) TERMINATION.—This section shall not apply to
12 any sale or use after December 31, 2024.’’.
13 (b) CREDIT MADE PART OF GENERAL BUSINESS
14 CREDIT.— Section 38(b), as amended by the preceding pro-
15 visions of this Act, is amended by striking ‘‘plus’’ at the
16 end of paragraph (33), by striking the period at the end
17 of paragraph (34) and inserting ‘‘, plus’’, and by inserting
18 after paragraph (34) the following new paragraph:
19 ‘‘(35) the sustainable aviation fuel credit deter-
20 mined under section 40B.’’.
21 (c) COORDINATION WITH BIODIESEL INCENTIVES.—
22 (1) IN GENERAL.—Section 40A(d)(1) is amended
23 by inserting ‘‘or 40B’’ after ‘‘determined under sec-
24 tion 40’’.
† HR 5376 EAS
319
1 (2) CONFORMING AMENDMENT.—Section 40A(f)
2 is amended by striking paragraph (4).
3 (d) SUSTAINABLE AVIATION FUEL ADDED TO CREDIT
4 FOR ALCOHOL FUEL, BIODIESEL, AND ALTERNATIVE FUEL
5 MIXTURES.—
6 (1) IN GENERAL.—Section 6426 is amended by
7 adding at the end the following new subsection:
8 ‘‘(k) SUSTAINABLE AVIATION FUEL CREDIT.—
9 ‘‘(1) IN GENERAL.—For purposes of this section,
10 the sustainable aviation fuel credit for the taxable
11 year is, with respect to any sale or use of a qualified
12 mixture, an amount equal to the product of—
13 ‘‘(A) the number of gallons of sustainable
14 aviation fuel in such mixture, multiplied by
15 ‘‘(B) the sum of—
16 ‘‘(i) $1.25, plus
17 ‘‘(ii) the applicable supplementary
18 amount with respect to such sustainable
19 aviation fuel.
20 ‘‘(2) DEFINITIONS.—Any term used in this sub-
21 section which is also used in section 40B shall have
22 the meaning given such term by section 40B.
23 ‘‘(3) REGISTRATION REQUIREMENT.—For pur-
24 poses of this subsection, rules similar to the rules of
25 section 40B(f) shall apply.’’.
† HR 5376 EAS
320
1 (2) CONFORMING AMENDMENTS.—
2 (A) Section 6426 is amended—
3 (i) in subsection (a)(1), by striking
4 ‘‘and (e)’’ and inserting ‘‘(e), and (k)’’, and
5 (ii) in subsection (h), by striking
6 ‘‘under section 40 or 40A’’ and inserting
7 ‘‘under section 40, 40A, or 40B’’.
8 (B) Section 6427(e) is amended—
9 (i) in the heading, by striking ‘‘OR AL-
10 TERNATIVE FUEL’’ and inserting, ‘‘ALTER-
11 NATIVE FUEL, OR SUSTAINABLE AVIATION
12 FUEL’’,
13 (ii) in paragraph (1), by inserting ‘‘or
14 the sustainable aviation fuel mixture cred-
15 it’’ after ‘‘alternative fuel mixture credit’’,
16 and
17 (iii) in paragraph (6)—
18 (I) in subparagraph (C), by strik-
19 ing ‘‘and’’ at the end,
20 (II) in subparagraph (D), by
21 striking the period at the end and in-
22 serting ‘‘, and’’, and
23 (III) by adding at the end the fol-
24 lowing new subparagraph:
† HR 5376 EAS
321
1 ‘‘(E) any qualified mixture of sustainable
2 aviation fuel (as defined in section 6426(k)(3))
3 sold or used after December 31, 2024.’’.
4 (C) Section 4101(a)(1) is amended by in-
5 serting ‘‘every person producing or importing
6 sustainable aviation fuel (as defined in section
7 40B),’’ before ‘‘and every person producing sec-
8 ond generation biofuel’’.
9 (D) The table of sections for subpart D of
10 subchapter A of chapter 1 is amended by insert-
11 ing after the item relating to section 40A the fol-
12 lowing new item:
‘‘Sec. 40B. Sustainable aviation fuel credit.’’.
13 (e) AMOUNT OF CREDIT INCLUDED IN GROSS IN-
14 COME.—Section 87 is amended by striking ‘‘and’’ in para-
15 graph (1), by striking the period at the end of paragraph
16 (2) and inserting ‘‘, and’’, and by adding at the end the
17 following new paragraph:
18 ‘‘(3) the sustainable aviation fuel credit deter-
19 mined with respect to the taxpayer for the taxable
20 year under section 40B(a).’’.
21 (f) EFFECTIVE DATE.—The amendments made by this
22 section shall apply to fuel sold or used after December 31,
23 2022.
† HR 5376 EAS
322
1 SEC. 13204. CLEAN HYDROGEN.
2 (a) CREDIT FOR PRODUCTION OF CLEAN HYDRO-
3 GEN.—
4 (1) IN GENERAL.—Subpart D of part IV of sub-
5 chapter A of chapter 1, as amended by the preceding
6 provisions of this Act, is amended by adding at the
7 end the following new section:
8 ‘‘SEC. 45V. CREDIT FOR PRODUCTION OF CLEAN HYDRO-
9 GEN.
10 ‘‘(a) AMOUNT OF CREDIT.—For purposes of section 38,
11 the clean hydrogen production credit for any taxable year
12 is an amount equal to the product of—
13 ‘‘(1) the kilograms of qualified clean hydrogen
14 produced by the taxpayer during such taxable year at
15 a qualified clean hydrogen production facility during
16 the 10-year period beginning on the date such facility
17 was originally placed in service, multiplied by
18 ‘‘(2) the applicable amount (as determined under
19 subsection (b)) with respect to such hydrogen.
20 ‘‘(b) APPLICABLE AMOUNT.—
21 ‘‘(1) IN GENERAL.—For purposes of subsection
22 (a)(2), the applicable amount shall be an amount
23 equal to the applicable percentage of $0.60. If any
24 amount as determined under the preceding sentence is
25 not a multiple of 0.1 cent, such amount shall be
26 rounded to the nearest multiple of 0.1 cent.
† HR 5376 EAS
323
1 ‘‘(2) APPLICABLE PERCENTAGE.—For purposes
2 of paragraph (1), the applicable percentage shall be
3 determined as follows:
4 ‘‘(A) In the case of any qualified clean hy-
5 drogen which is produced through a process that
6 results in a lifecycle greenhouse gas emissions
7 rate of—
8 ‘‘(i) not greater than 4 kilograms of
9 CO2e per kilogram of hydrogen, and
10 ‘‘(ii) not less than 2.5 kilograms of
11 CO2e per kilogram of hydrogen,
12 the applicable percentage shall be 20 percent.
13 ‘‘(B) In the case of any qualified clean hy-
14 drogen which is produced through a process that
15 results in a lifecycle greenhouse gas emissions
16 rate of—
17 ‘‘(i) less than 2.5 kilograms of CO2e
18 per kilogram of hydrogen, and
19 ‘‘(ii) not less than 1.5 kilograms of
20 CO2e per kilogram of hydrogen,
21 the applicable percentage shall be 25 percent.
22 ‘‘(C) In the case of any qualified clean hy-
23 drogen which is produced through a process that
24 results in a lifecycle greenhouse gas emissions
25 rate of—
† HR 5376 EAS
324
1 ‘‘(i) less than 1.5 kilograms of CO2e
2 per kilogram of hydrogen, and
3 ‘‘(ii) not less than 0.45 kilograms of
4 CO2e per kilogram of hydrogen,
5 the applicable percentage shall be 33.4 percent.
6 ‘‘(D) In the case of any qualified clean hy-
7 drogen which is produced through a process that
8 results in a lifecycle greenhouse gas emissions
9 rate of less than 0.45 kilograms of CO2e per kilo-
10 gram of hydrogen, the applicable percentage shall
11 be 100 percent.
12 ‘‘(3) INFLATION ADJUSTMENT.—The $0.60
13 amount in paragraph (1) shall be adjusted by multi-
14 plying such amount by the inflation adjustment fac-
15 tor (as determined under section 45(e)(2), determined
16 by substituting ‘2022’ for ‘1992’ in subparagraph (B)
17 thereof) for the calendar year in which the qualified
18 clean hydrogen is produced. If any amount as in-
19 creased under the preceding sentence is not a multiple
20 of 0.1 cent, such amount shall be rounded to the near-
21 est multiple of 0.1 cent.
22 ‘‘(c) DEFINITIONS.—For purposes of this section—
23 ‘‘(1) LIFECYCLE GREENHOUSE GAS EMISSIONS.—
24 ‘‘(A) IN GENERAL.—Subject to subpara-
25 graph (B), the term ‘lifecycle greenhouse gas
† HR 5376 EAS
325
1 emissions’ has the same meaning given such term
2 under subparagraph (H) of section 211(o)(1) of
3 the Clean Air Act (42 U.S.C. 7545(o)(1)), as in
4 effect on the date of enactment of this section.
5 ‘‘(B) GREET MODEL.—The term ‘lifecycle
6 greenhouse gas emissions’ shall only include
7 emissions through the point of production (well-
8 to-gate), as determined under the most recent
9 Greenhouse gases, Regulated Emissions, and En-
10 ergy use in Transportation model (commonly re-
11 ferred to as the ‘GREET model’) developed by
12 Argonne National Laboratory, or a successor
13 model (as determined by the Secretary).
14 ‘‘(2) QUALIFIED CLEAN HYDROGEN.—
15 ‘‘(A) IN GENERAL.—The term ‘qualified
16 clean hydrogen’ means hydrogen which is pro-
17 duced through a process that results in a lifecycle
18 greenhouse gas emissions rate of not greater than
19 4 kilograms of CO2e per kilogram of hydrogen.
20 ‘‘(B) ADDITIONAL REQUIREMENTS.—Such
21 term shall not include any hydrogen unless—
22 ‘‘(i) such hydrogen is produced—
23 ‘‘(I) in the United States (as de-
24 fined in section 638(1)) or a possession
† HR 5376 EAS
326
1 of the United States (as defined in sec-
2 tion 638(2)),
3 ‘‘(II) in the ordinary course of a
4 trade or business of the taxpayer, and
5 ‘‘(III) for sale or use, and
6 ‘‘(ii) the production and sale or use of
7 such hydrogen is verified by an unrelated
8 party.
9 ‘‘(C) PROVISIONAL EMISSIONS RATE.—In
10 the case of any hydrogen for which a lifecycle
11 greenhouse gas emissions rate has not been deter-
12 mined for purposes of this section, a taxpayer
13 producing such hydrogen may file a petition
14 with the Secretary for determination of the
15 lifecycle greenhouse gas emissions rate with re-
16 spect to such hydrogen.
17 ‘‘(3) QUALIFIED CLEAN HYDROGEN PRODUCTION
18 FACILITY.—The term ‘qualified clean hydrogen pro-
19 duction facility’ means a facility—
20 ‘‘(A) owned by the taxpayer,
21 ‘‘(B) which produces qualified clean hydro-
22 gen, and
23 ‘‘(C) the construction of which begins before
24 January 1, 2033.
25 ‘‘(d) SPECIAL RULES.—
† HR 5376 EAS
327
1 ‘‘(1) TREATMENT OF FACILITIES OWNED BY
2 MORE THAN 1 TAXPAYER.—Rules similar to the rules
3 section 45(e)(3) shall apply for purposes of this sec-
4 tion.
5 ‘‘(2) COORDINATION WITH CREDIT FOR CARBON
6 OXIDE SEQUESTRATION.—No credit shall be allowed
7 under this section with respect to any qualified clean
8 hydrogen produced at a facility which includes car-
9 bon capture equipment for which a credit is allowed
10 to any taxpayer under section 45Q for the taxable
11 year or any prior taxable year.
12 ‘‘(e) INCREASED CREDIT AMOUNT FOR QUALIFIED
13 CLEAN HYDROGEN PRODUCTION FACILITIES.—
14 ‘‘(1) IN GENERAL.—In the case of any qualified
15 clean hydrogen production facility which satisfies the
16 requirements of paragraph (2), the amount of the
17 credit determined under subsection (a) with respect to
18 qualified clean hydrogen described in subsection
19 (b)(2) shall be equal to such amount (determined
20 without regard to this sentence) multiplied by 5.
21 ‘‘(2) REQUIREMENTS.—A facility meets the re-
22 quirements of this paragraph if it is one of the fol-
23 lowing:
24 ‘‘(A) A facility—
† HR 5376 EAS
328
1 ‘‘(i) the construction of which begins
2 prior to the date that is 60 days after the
3 Secretary publishes guidance with respect to
4 the requirements of paragraphs (3)(A) and
5 (4), and
6 ‘‘(ii) which meets the requirements of
7 paragraph (3)(A) with respect to alteration
8 or repair of such facility which occurs after
9 such date.
10 ‘‘(B) A facility which satisfies the require-
11 ments of paragraphs (3)(A) and (4).
12 ‘‘(3) PREVAILING WAGE REQUIREMENTS.—
13 ‘‘(A) IN GENERAL.—The requirements de-
14 scribed in this subparagraph with respect to any
15 qualified clean hydrogen production facility are
16 that the taxpayer shall ensure that any laborers
17 and mechanics employed by the taxpayer or any
18 contractor or subcontractor in—
19 ‘‘(i) the construction of such facility,
20 and
21 ‘‘(ii) with respect to any taxable year,
22 for any portion of such taxable year which
23 is within the period described in subsection
24 (a)(2), the alteration or repair of such facil-
25 ity,
† HR 5376 EAS
329
1 shall be paid wages at rates not less than the
2 prevailing rates for construction, alteration, or
3 repair of a similar character in the locality in
4 which such facility is located as most recently
5 determined by the Secretary of Labor, in accord-
6 ance with subchapter IV of chapter 31 of title 40,
7 United States Code. For purposes of determining
8 an increased credit amount under paragraph (1)
9 for a taxable year, the requirement under clause
10 (ii) of this subparagraph is applied to such tax-
11 able year in which the alteration or repair of
12 qualified facility occurs.
13 ‘‘(B) CORRECTION AND PENALTY RELATED
14 TO FAILURE TO SATISFY WAGE REQUIRE-
15 MENTS.—Rules similar to the rules of section
16 45(b)(7)(B) shall apply.
17 ‘‘(4) APPRENTICESHIP REQUIREMENTS.—Rules
18 similar to the rules of section 45(b)(8) shall apply.
19 ‘‘(5) REGULATIONS AND GUIDANCE.—The Sec-
20 retary shall issue such regulations or other guidance
21 as the Secretary determines necessary to carry out the
22 purposes of this subsection, including regulations or
23 other guidance which provides for requirements for
24 recordkeeping or information reporting for purposes
25 of administering the requirements of this subsection.
† HR 5376 EAS
330
1 ‘‘(f) REGULATIONS.—Not later than 1 year after the
2 date of enactment of this section, the Secretary shall issue
3 regulations or other guidance to carry out the purposes of
4 this section, including regulations or other guidance for de-
5 termining lifecycle greenhouse gas emissions.’’.
6 (2) CREDIT REDUCED FOR TAX-EXEMPT
7 BONDS.—Section 45V(d), as added by this section, is
8 amended by adding at the end the following new
9 paragraph:
10 ‘‘(3) CREDIT REDUCED FOR TAX-EXEMPT
11 BONDS.—Rules similar to the rule under section
12 45(b)(3) shall apply for purposes of this section.’’.
13 (3) MODIFICATION OF EXISTING FACILITIES.—
14 Section 45V(d), as added and amended by the pre-
15 ceding provisions of this section, is amended by add-
16 ing at the end the following new paragraph:
17 ‘‘(4) MODIFICATION OF EXISTING FACILITIES.—
18 For purposes of subsection (a)(1), in the case of any
19 facility which—
20 ‘‘(A) was originally placed in service before
21 January 1, 2023, and, prior to the modification
22 described in subparagraph (B), did not produce
23 qualified clean hydrogen, and
24 ‘‘(B) after the date such facility was origi-
25 nally placed in service—
† HR 5376 EAS
331
1 ‘‘(i) is modified to produce qualified
2 clean hydrogen, and
3 ‘‘(ii) amounts paid or incurred with
4 respect to such modification are properly
5 chargeable to capital account of the tax-
6 payer,
7 such facility shall be deemed to have been originally
8 placed in service as of the date that the property re-
9 quired to complete the modification described in sub-
10 paragraph (B) is placed in service.’’.
11 (4) CONFORMING AMENDMENTS.—
12 (A) Section 38(b), as amended by the pre-
13 ceding provisions of this Act, is amended—
14 (i) in paragraph (34), by striking
15 ‘‘plus’’ at the end,
16 (ii) in paragraph (35), by striking the
17 period at the end and inserting ‘‘, plus’’,
18 and
19 (iii) by adding at the end the following
20 new paragraph:
21 ‘‘(36) the clean hydrogen production credit deter-
22 mined under section 45V(a).’’.
23 (B) The table of sections for subpart D of
24 part IV of subchapter A of chapter 1, as amend-
25 ed by the preceding provisions of this Act, is
† HR 5376 EAS
332
1 amended by adding at the end the following new
2 item:
‘‘Sec. 45V. Credit for production of clean hydrogen.’’.
3 (5) EFFECTIVE DATES.—
4 (A) IN GENERAL.—The amendments made
5 by paragraphs (1) and (4) of this subsection
6 shall apply to hydrogen produced after December
7 31, 2022.
8 (B) CREDIT REDUCED FOR TAX-EXEMPT
9 BONDS.—The amendment made by paragraph
10 (2) shall apply to facilities the construction of
11 which begins after the date of enactment of this
12 Act.
13 (C) MODIFICATION OF EXISTING FACILI-
14 TIES.—The amendment made by paragraph (3)
15 shall apply to modifications made after Decem-
16 ber 31, 2022.
17 (b) CREDIT FOR ELECTRICITY PRODUCED FROM RE-
18 NEWABLE RESOURCES ALLOWED IF ELECTRICITY IS USED
19 TO PRODUCE CLEAN HYDROGEN.—
20 (1) IN GENERAL.—Section 45(e), as amended by
21 the preceding provisions of this Act, is amended by
22 adding at the end the following new paragraph:
23 ‘‘(13) SPECIAL RULE FOR ELECTRICITY USED AT
24 A QUALIFIED CLEAN HYDROGEN PRODUCTION FACIL-
25 ITY.—Electricity produced by the taxpayer shall be
† HR 5376 EAS
333
1 treated as sold by such taxpayer to an unrelated per-
2 son during the taxable year if—
3 ‘‘(A) such electricity is used during such
4 taxable year by the taxpayer or a person related
5 to the taxpayer at a qualified clean hydrogen
6 production facility (as defined in section
7 45V(c)(3)) to produce qualified clean hydrogen
8 (as defined in section 45V(c)(2)), and
9 ‘‘(B) such use and production is verified (in
10 such form or manner as the Secretary may pre-
11 scribe) by an unrelated third party.’’.
12 (2) SIMILAR RULE FOR ZERO-EMISSION NUCLEAR
13 POWER PRODUCTION CREDIT.—Subsection (c)(2) of
14 section 45U, as added by section 13105 of this Act,
15 is amended by striking ‘‘and (5)’’ and inserting ‘‘(5),
16 and (13)’’.
17 (3) EFFECTIVE DATE.—The amendments made
18 by this subsection shall apply to electricity produced
19 after December 31, 2022.
20 (c) ELECTION TO TREAT CLEAN HYDROGEN PRODUC-
21 TION FACILITIES AS ENERGY PROPERTY.—
22 (1) IN GENERAL.—Section 48(a), as amended by
23 the preceding provisions of this Act, is amended—
24 (A) by redesignating paragraph (15) as
25 paragraph (16), and
† HR 5376 EAS
334
1 (B) by inserting after paragraph (14) the
2 following new paragraph:
3 ‘‘(15) ELECTION TO TREAT CLEAN HYDROGEN
4 PRODUCTION FACILITIES AS ENERGY PROPERTY.—
5 ‘‘(A) IN GENERAL.—In the case of any
6 qualified property (as defined in paragraph
7 (5)(D)) which is part of a specified clean hydro-
8 gen production facility—
9 ‘‘(i) such property shall be treated as
10 energy property for purposes of this section,
11 and
12 ‘‘(ii) the energy percentage with respect
13 to such property is—
14 ‘‘(I) in the case of a facility which
15 is designed and reasonably expected to
16 produce qualified clean hydrogen which
17 is described in a subparagraph (A) of
18 section 45V(b)(2), 1.2 percent,
19 ‘‘(II) in the case of a facility
20 which is designed and reasonably ex-
21 pected to produce qualified clean hy-
22 drogen which is described in a sub-
23 paragraph (B) of such section, 1.5 per-
24 cent,
† HR 5376 EAS
335
1 ‘‘(III) in the case of a facility
2 which is designed and reasonably ex-
3 pected to produce qualified clean hy-
4 drogen which is described in a sub-
5 paragraph (C) of such section, 2 per-
6 cent, and
7 ‘‘(IV) in the case of a facility
8 which is designed and reasonably ex-
9 pected to produce qualified clean hy-
10 drogen which is described in subpara-
11 graph (D) of such section, 6 percent.
12 ‘‘(B) DENIAL OF PRODUCTION CREDIT.—No
13 credit shall be allowed under section 45V or sec-
14 tion 45Q for any taxable year with respect to
15 any specified clean hydrogen production facility
16 or any carbon capture equipment included at
17 such facility.
18 ‘‘(C) SPECIFIED CLEAN HYDROGEN PRODUC-
19 TION FACILITY.—For purposes of this paragraph,
20 the term ‘specified clean hydrogen production fa-
21 cility’ means any qualified clean hydrogen pro-
22 duction facility (as defined in section
23 45V(c)(3))—
24 ‘‘(i) which is placed in service after
25 December 31, 2022,
† HR 5376 EAS
336
1 ‘‘(ii) with respect to which—
2 ‘‘(I) no credit has been allowed
3 under section 45V or 45Q, and
4 ‘‘(II) the taxpayer makes an ir-
5 revocable election to have this para-
6 graph apply, and
7 ‘‘(iii) for which an unrelated third
8 party has verified (in such form or manner
9 as the Secretary may prescribe) that such
10 facility produces hydrogen through a proc-
11 ess which results in lifecycle greenhouse gas
12 emissions which are consistent with the hy-
13 drogen that such facility was designed and
14 expected to produce under subparagraph
15 (A)(ii).
16 ‘‘(D) QUALIFIED CLEAN HYDROGEN.—For
17 purposes of this paragraph, the term ‘qualified
18 clean hydrogen’ has the meaning given such term
19 by section 45V(c)(2).
20 ‘‘(E) REGULATIONS.—The Secretary shall
21 issue such regulations or other guidance as the
22 Secretary determines necessary to carry out the
23 purposes of this section, including regulations or
24 other guidance which recaptures so much of any
25 credit allowed under this section as exceeds the
† HR 5376 EAS
337
1 amount of the credit which would have been al-
2 lowed if the expected production were consistent
3 with the actual verified production (or all of the
4 credit so allowed in the absence of such
5 verification).’’.
6 (2) CONFORMING AMENDMENT.—Paragraph
7 (9)(A)(i) of section 48(a), as added by section 13102,
8 is amended by inserting ‘‘and paragraph (15)’’ after
9 ‘‘paragraphs (1) through (8)’’.
10 (3) EFFECTIVE DATE.—The amendments made
11 by this subsection shall apply to property placed in
12 service after December 31, 2022, and, for any prop-
13 erty the construction of which begins prior to Janu-
14 ary 1, 2023, only to the extent of the basis thereof at-
15 tributable to the construction, reconstruction, or erec-
16 tion after December 31, 2022.
17 (d) TERMINATION OF EXCISE TAX CREDIT FOR HY-
18 DROGEN.—
19 (1) IN GENERAL.—Section 6426(d)(2) is amend-
20 ed by striking subparagraph (D) and by redesig-
21 nating subparagraphs (E), (F), and (G) as subpara-
22 graphs (D), (E), and (F), respectively.
23 (2) CONFORMING AMENDMENT.—Section
24 6426(e)(2) is amended by striking ‘‘(F)’’ and insert-
25 ing ‘‘(E)’’.
† HR 5376 EAS
338
1 (3) EFFECTIVE DATE.—The amendments made
2 by this subsection shall apply to fuel sold or used
3 after December 31, 2022.
4 PART 3—CLEAN ENERGY AND EFFICIENCY
5 INCENTIVES FOR INDIVIDUALS
6 SEC. 13301. EXTENSION, INCREASE, AND MODIFICATIONS
7 OF NONBUSINESS ENERGY PROPERTY CRED-
8 IT.
9 (a) EXTENSION OF CREDIT.—Section 25C(g)(2) is
10 amended by striking ‘‘December 31, 2021’’ and inserting
11 ‘‘December 31, 2032’’.
12 (b) ALLOWANCE OF CREDIT.—Section 25C(a) is
13 amended to read as follows:
14 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an indi-
15 vidual, there shall be allowed as a credit against the tax
16 imposed by this chapter for the taxable year an amount
17 equal to 30 percent of the sum of—
18 ‘‘(1) the amount paid or incurred by the tax-
19 payer for qualified energy efficiency improvements in-
20 stalled during such taxable year, and
21 ‘‘(2) the amount of the residential energy prop-
22 erty expenditures paid or incurred by the taxpayer
23 during such taxable year.’’.
† HR 5376 EAS
339
1 (c) APPLICATION OF ANNUAL LIMITATION IN LIEU OF
2 LIFETIME LIMITATION.—Section 25C(b) is amended to read
3 as follows:
4 ‘‘(b) LIMITATIONS.—
5 ‘‘(1) IN GENERAL.—The credit allowed under
6 this section with respect to any taxpayer for any tax-
7 able year shall not exceed $1,200.
8 ‘‘(2) ENERGY PROPERTY.—The credit allowed
9 under this section by reason of subsection (a)(2) with
10 respect to any taxpayer for any taxable year shall not
11 exceed, with respect to any item of qualified energy
12 property, $600.
13 ‘‘(3) WINDOWS.—The credit allowed under this
14 section by reason of subsection (a)(1) with respect to
15 any taxpayer for any taxable year shall not exceed,
16 in the aggregate with respect to all exterior windows
17 and skylights, $600.
18 ‘‘(4) DOORS.—The credit allowed under this sec-
19 tion by reason of subsection (a)(1) with respect to any
20 taxpayer for any taxable year shall not exceed—
21 ‘‘(A) $250 in the case of any exterior door,
22 and
23 ‘‘(B) $500 in the aggregate with respect to
24 all exterior doors.
† HR 5376 EAS
340
1 ‘‘(5) HEAT PUMP AND HEAT PUMP WATER HEAT-
2 ERS; BIOMASS STOVES AND BOILERS.—Notwith-
3 standing paragraphs (1) and (2), the credit allowed
4 under this section by reason of subsection (a)(2) with
5 respect to any taxpayer for any taxable year shall
6 not, in the aggregate, exceed $2,000 with respect to
7 amounts paid or incurred for property described in
8 clauses (i) and (ii) of subsection (d)(2)(A) and in
9 subsection (d)(2)(B).’’.
10 (d) MODIFICATIONS RELATED TO QUALIFIED ENERGY
11 EFFICIENCY IMPROVEMENTS.—
12 (1) STANDARDS FOR ENERGY EFFICIENT BUILD-
13 ING ENVELOPE COMPONENTS.—Section 25C(c)(2) is
14 amended by striking ‘‘meets—’’ and all that follows
15 through the period at the end and inserting the fol-
16 lowing: ‘‘meets—
17 ‘‘(A) in the case of an exterior window or
18 skylight, Energy Star most efficient certification
19 requirements,
20 ‘‘(B) in the case of an exterior door, appli-
21 cable Energy Star requirements, and
22 ‘‘(C) in the case of any other component, the
23 prescriptive criteria for such component estab-
24 lished by the most recent International Energy
25 Conservation Code standard in effect as of the
† HR 5376 EAS
341
1 beginning of the calendar year which is 2 years
2 prior to the calendar year in which such compo-
3 nent is placed in service.’’.
4 (2) ROOFS NOT TREATED AS BUILDING ENVE-
5 LOPE COMPONENTS.—Section 25C(c)(3) is amended
6 by adding ‘‘and’’ at the end of subparagraph (B), by
7 striking ‘‘, and’’ at the end of subparagraph (C) and
8 inserting a period, and by striking subparagraph (D).
9 (3) AIR SEALING INSULATION ADDED TO DEFINI-
10 TION OF BUILDING ENVELOPE COMPONENT.—Section
11 25C(c)(3)(A) is amended by inserting ‘‘, including air
12 sealing material or system,’’ after ‘‘material or sys-
13 tem’’.
14 (e) MODIFICATION OF RESIDENTIAL ENERGY PROP-
15 ERTY EXPENDITURES.—Section 25C(d) is amended to read
16 as follows:
17 ‘‘(d) RESIDENTIAL ENERGY PROPERTY EXPENDI-
18 TURES.—For purposes of this section—
19 ‘‘(1) IN GENERAL.—The term ‘residential energy
20 property expenditures’ means expenditures made by
21 the taxpayer for qualified energy property which is—
22 ‘‘(A) installed on or in connection with a
23 dwelling unit located in the United States and
24 used as a residence by the taxpayer, and
† HR 5376 EAS
342
1 ‘‘(B) originally placed in service by the tax-
2 payer.
3 Such term includes expenditures for labor costs prop-
4 erly allocable to the onsite preparation, assembly, or
5 original installation of the property.
6 ‘‘(2) QUALIFIED ENERGY PROPERTY.—The term
7 ‘qualified energy property’ means any of the fol-
8 lowing:
9 ‘‘(A) Any of the following which meet or ex-
10 ceed the highest efficiency tier (not including any
11 advanced tier) established by the Consortium for
12 Energy Efficiency which is in effect as of the be-
13 ginning of the calendar year in which the prop-
14 erty is placed in service:
15 ‘‘(i) An electric or natural gas heat
16 pump water heater.
17 ‘‘(ii) An electric or natural gas heat
18 pump.
19 ‘‘(iii) A central air conditioner.
20 ‘‘(iv) A natural gas, propane, or oil
21 water heater.
22 ‘‘(v) A natural gas, propane, or oil fur-
23 nace or hot water boiler.
24 ‘‘(B) A biomass stove or boiler which—
† HR 5376 EAS
343
1 ‘‘(i) uses the burning of biomass fuel to
2 heat a dwelling unit located in the United
3 States and used as a residence by the tax-
4 payer, or to heat water for use in such a
5 dwelling unit, and
6 ‘‘(ii) has a thermal efficiency rating of
7 at least 75 percent (measured by the higher
8 heating value of the fuel).
9 ‘‘(C) Any oil furnace or hot water boiler
10 which—
11 ‘‘(i) is placed in service after December
12 31, 2022, and before January 1, 2027,
13 and—
14 ‘‘(I) meets or exceeds 2021 Energy
15 Star efficiency criteria, and
16 ‘‘(II) is rated by the manufacturer
17 for use with fuel blends at least 20 per-
18 cent of the volume of which consists of
19 an eligible fuel, or
20 ‘‘(ii) is placed in service after Decem-
21 ber 31, 2026, and—
22 ‘‘(I) achieves an annual fuel utili-
23 zation efficiency rate of not less than
24 90, and
† HR 5376 EAS
344
1 ‘‘(II) is rated by the manufacturer
2 for use with fuel blends at least 50 per-
3 cent of the volume of which consists of
4 an eligible fuel.
5 ‘‘(D) Any improvement to, or replacement
6 of, a panelboard, sub-panelboard, branch cir-
7 cuits, or feeders which—
8 ‘‘(i) is installed in a manner consistent
9 with the National Electric Code,
10 ‘‘(ii) has a load capacity of not less
11 than 200 amps,
12 ‘‘(iii) is installed in conjunction
13 with—
14 ‘‘(I) any qualified energy effi-
15 ciency improvements, or
16 ‘‘(II) any qualified energy prop-
17 erty described in subparagraphs (A)
18 through (C) for which a credit is al-
19 lowed under this section for expendi-
20 tures with respect to such property,
21 and
22 ‘‘(iv) enables the installation and use
23 of any property described in subclause (I)
24 or (II) of clause (iii).
† HR 5376 EAS
345
1 ‘‘(3) ELIGIBLE FUEL.—For purposes of para-
2 graph (2), the term ‘eligible fuel’ means—
3 ‘‘(A) biodiesel and renewable diesel (within
4 the meaning of section 40A), and
5 ‘‘(B) second generation biofuel (within the
6 meaning of section 40).’’.
7 (f) HOME ENERGY AUDITS.—
8 (1) IN GENERAL.—Section 25C(a), as amended
9 by subsection (b), is amended by striking ‘‘and’’ at
10 the end of paragraph (1), by striking the period at the
11 end of paragraph (2) and inserting ‘‘, and’’, and by
12 adding at the end the following new paragraph:
13 ‘‘(3) the amount paid or incurred by the tax-
14 payer during the taxable year for home energy au-
15 dits.’’.
16 (2) LIMITATION.—Section 25C(b), as amended
17 by subsection (c), is amended adding at the end the
18 following new paragraph:
19 ‘‘(6) HOME ENERGY AUDITS.—
20 ‘‘(A) DOLLAR LIMITATION.—The amount of
21 the credit allowed under this section by reason of
22 subsection (a)(3) shall not exceed $150.
23 ‘‘(B) SUBSTANTIATION REQUIREMENT.—No
24 credit shall be allowed under this section by rea-
25 son of subsection (a)(3) unless the taxpayer in-
† HR 5376 EAS
346
1 cludes with the taxpayer’s return of tax such in-
2 formation or documentation as the Secretary
3 may require.’’.
4 (3) HOME ENERGY AUDITS.—
5 (A) IN GENERAL.—Section 25C is amended
6 by redesignating subsections (e), (f), and (g), as
7 subsections (f), (g), and (h), respectively, and by
8 inserting after subsection (d) the following new
9 subsection:
10 ‘‘(e) HOME ENERGY AUDITS.—For purposes of this
11 section, the term ‘home energy audit’ means an inspection
12 and written report with respect to a dwelling unit located
13 in the United States and owned or used by the taxpayer
14 as the taxpayer’s principal residence (within the meaning
15 of section 121) which—
16 ‘‘(1) identifies the most significant and cost-effec-
17 tive energy efficiency improvements with respect to
18 such dwelling unit, including an estimate of the en-
19 ergy and cost savings with respect to each such im-
20 provement, and
21 ‘‘(2) is conducted and prepared by a home en-
22 ergy auditor that meets the certification or other re-
23 quirements specified by the Secretary in regulations
24 or other guidance (as prescribed by the Secretary not
† HR 5376 EAS
347
1 later than 365 days after the date of the enactment
2 of this subsection).’’.
3 (B) CONFORMING AMENDMENT.—Section
4 1016(a)(33) is amended by striking ‘‘section
5 25C(f)’’ and inserting ‘‘section 25C(g)’’.
6 (4) LACK OF SUBSTANTIATION TREATED AS
7 MATHEMATICAL OR CLERICAL ERROR.—Section
8 6213(g)(2) is amended—
9 (A) in subparagraph (P), by striking ‘‘and’’
10 at the end,
11 (B) in subparagraph (Q), by striking the
12 period at the end and inserting ‘‘, and’’, and
13 (C) by inserting after subparagraph (Q) the
14 following:
15 ‘‘(R) an omission of information or docu-
16 mentation required under section 25C(b)(6)(B)
17 (relating to home energy audits) to be included
18 on a return.’’.
19 (g) IDENTIFICATION NUMBER REQUIREMENT.—
20 (1) IN GENERAL.—Section 25C, as amended by
21 this section, is amended by redesignating subsection
22 (h) as subsection (i) and by inserting after subsection
23 (g) the following new subsection:
24 ‘‘(h) PRODUCT IDENTIFICATION NUMBER REQUIRE-
25 MENT.—
† HR 5376 EAS
348
1 ‘‘(1) IN GENERAL.—No credit shall be allowed
2 under subsection (a) with respect to any item of spec-
3 ified property placed in service after December 31,
4 2024, unless—
5 ‘‘(A) such item is produced by a qualified
6 manufacturer, and
7 ‘‘(B) the taxpayer includes the qualified
8 product identification number of such item on
9 the return of tax for the taxable year.
10 ‘‘(2) QUALIFIED PRODUCT IDENTIFICATION NUM-
11 BER.—For purposes of this section, the term ‘qualified
12 product identification number’ means, with respect to
13 any item of specified property, the product identifica-
14 tion number assigned to such item by the qualified
15 manufacturer pursuant to the methodology referred to
16 in paragraph (3).
17 ‘‘(3) QUALIFIED MANUFACTURER.—For purposes
18 of this section, the term ‘qualified manufacturer’
19 means any manufacturer of specified property which
20 enters into an agreement with the Secretary which
21 provides that such manufacturer will—
22 ‘‘(A) assign a product identification number
23 to each item of specified property produced by
24 such manufacturer utilizing a methodology that
25 will ensure that such number (including any al-
† HR 5376 EAS
349
1 phanumeric) is unique to each such item (by uti-
2 lizing numbers or letters which are unique to
3 such manufacturer or by such other method as
4 the Secretary may provide),
5 ‘‘(B) label such item with such number in
6 such manner as the Secretary may provide, and
7 ‘‘(C) make periodic written reports to the
8 Secretary (at such times and in such manner as
9 the Secretary may provide) of the product identi-
10 fication numbers so assigned and including such
11 information as the Secretary may require with
12 respect to the item of specified property to which
13 such number was so assigned.
14 ‘‘(4) SPECIFIED PROPERTY.—For purposes of
15 this subsection, the term ‘specified property’ means
16 any qualified energy property and any property de-
17 scribed in subparagraph (B) or (C) of subsection
18 (c)(3).’’.
19 (2) OMISSION OF CORRECT PRODUCT IDENTI-
20 FICATION NUMBER TREATED AS MATHEMATICAL OR
21 CLERICAL ERROR.—Section 6213(g)(2), as amended
22 by the preceding provisions of this Act, is amended—
23 (A) in subparagraph (Q), by striking ‘‘and’’
24 at the end,
† HR 5376 EAS
350
1 (B) in subparagraph (R), by striking the
2 period at the end and inserting ‘‘, and’’, and
3 (C) by inserting after subparagraph (R) the
4 following:
5 ‘‘(S) an omission of a correct product iden-
6 tification number required under section 25C(h)
7 (relating to credit for nonbusiness energy prop-
8 erty) to be included on a return.’’.
9 (h) ENERGY EFFICIENT HOME IMPROVEMENT CRED-
10 IT.—
11 (1) IN GENERAL.—The heading for section 25C
12 is amended by striking ‘‘NONBUSINESS ENERGY
13 PROPERTY’’ and inserting ‘‘ENERGY EFFICIENT
14 HOME IMPROVEMENT CREDIT’’.
15 (2) CLERICAL AMENDMENT.—The table of sec-
16 tions for subpart A of part IV of subchapter A of
17 chapter 1 is amended by striking the item relating to
18 section 25C and inserting after the item relating to
19 section 25B the following item:
‘‘Sec. 25C. Energy efficient home improvement credit.’’.
20 (i) EFFECTIVE DATES.—
21 (1) IN GENERAL.—Except as otherwise provided
22 by this subsection, the amendments made by this sec-
23 tion shall apply to property placed in service after
24 December 31, 2022.
† HR 5376 EAS
351
1 (2) EXTENSION OF CREDIT.—The amendments
2 made by subsection (a) shall apply to property placed
3 in service after December 31, 2021.
4 (3) IDENTIFICATION NUMBER REQUIREMENT.—
5 The amendments made by subsection (g) shall apply
6 to property placed in service after December 31, 2024.
7 SEC. 13302. RESIDENTIAL CLEAN ENERGY CREDIT.
8 (a) EXTENSION OF CREDIT.—
9 (1) IN GENERAL.—Section 25D(h) is amended by
10 striking ‘‘December 31, 2023’’ and inserting ‘‘Decem-
11 ber 31, 2034’’.
12 (2) APPLICATION OF PHASEOUT.—Section
13 25D(g) is amended—
14 (A) in paragraph (2), by striking ‘‘before
15 January 1, 2023, 26 percent, and’’ and inserting
16 ‘‘before January 1, 2022, 26 percent,’’, and
17 (B) by striking paragraph (3) and by in-
18 serting after paragraph (2) the following new
19 paragraphs:
20 ‘‘(3) in the case of property placed in service
21 after December 31, 2021, and before January 1, 2033,
22 30 percent,
23 ‘‘(4) in the case of property placed in service
24 after December 31, 2032, and before January 1, 2034,
25 26 percent, and
† HR 5376 EAS
352
1 ‘‘(5) in the case of property placed in service
2 after December 31, 2033, and before January 1, 2035,
3 22 percent.’’.
4 (b) RESIDENTIAL CLEAN ENERGY CREDIT FOR BAT-
5 TERY STORAGE TECHNOLOGY; CERTAIN EXPENDITURES
6 DISALLOWED.—
7 (1) ALLOWANCE OF CREDIT.—Paragraph (6) of
8 section 25D(a) is amended to read as follows:
9 ‘‘(6) the qualified battery storage technology ex-
10 penditures,’’.
11 (2) DEFINITION OF QUALIFIED BATTERY STOR-
12 AGE TECHNOLOGY EXPENDITURE.—Paragraph (6) of
13 section 25D(d) is amended to read as follows:
14 ‘‘(6) QUALIFIED BATTERY STORAGE TECHNOLOGY
15 EXPENDITURE.—The term ‘qualified battery storage
16 technology expenditure’ means an expenditure for bat-
17 tery storage technology which—
18 ‘‘(A) is installed in connection with a dwell-
19 ing unit located in the United States and used
20 as a residence by the taxpayer, and
21 ‘‘(B) has a capacity of not less than 3 kilo-
22 watt hours.’’.
23 (c) CONFORMING AMENDMENTS.—
† HR 5376 EAS
353
1 (1) Section 25D(d)(3) is amended by inserting ‘‘,
2 without regard to subparagraph (D) thereof’’ after
3 ‘‘section 48(c)(1)’’.
4 (2) The heading for section 25D is amended by
5 striking ‘‘ENERGY EFFICIENT PROPERTY’’ and in-
6 serting ‘‘CLEAN ENERGY CREDIT’’.
7 (3) The table of sections for subpart A of part IV
8 of subchapter A of chapter 1 is amended by striking
9 the item relating to section 25D and inserting the fol-
10 lowing:
‘‘Sec. 25D. Residential clean energy credit.’’.
11 (d) EFFECTIVE DATES.—
12 (1) IN GENERAL.—Except as provided in para-
13 graph (2), the amendments made by this section shall
14 apply to expenditures made after December 31, 2021.
15 (2) RESIDENTIAL CLEAN ENERGY CREDIT FOR
16 BATTERY STORAGE TECHNOLOGY; CERTAIN EXPENDI-
17 TURES DISALLOWED.—The amendments made by sub-
18 section (b) shall apply to expenditures made after De-
19 cember 31, 2022.
20 SEC. 13303. ENERGY EFFICIENT COMMERCIAL BUILDINGS
21 DEDUCTION.
22 (a) IN GENERAL.—
23 (1) MAXIMUM AMOUNT OF DEDUCTION.—Sub-
24 section (b) of section 179D is amended to read as fol-
25 lows:
† HR 5376 EAS
354
1 ‘‘(b) MAXIMUM AMOUNT OF DEDUCTION.—
2 ‘‘(1) IN GENERAL.—The deduction under sub-
3 section (a) with respect to any building for any tax-
4 able year shall not exceed the excess (if any) of—
5 ‘‘(A) the product of—
6 ‘‘(i) the applicable dollar value, and
7 ‘‘(ii) the square footage of the building,
8 over
9 ‘‘(B) the aggregate amount of the deductions
10 under subsections (a) and (f) with respect to the
11 building for the 3 taxable years immediately pre-
12 ceding such taxable year (or, in the case of any
13 such deduction allowable to a person other than
14 the taxpayer, for any taxable year ending during
15 the 4-taxable-year period ending with such tax-
16 able year).
17 ‘‘(2) APPLICABLE DOLLAR VALUE.—For purposes
18 of paragraph (1)(A)(i), the applicable dollar value
19 shall be an amount equal to $0.50 increased (but not
20 above $1.00) by $0.02 for each percentage point by
21 which the total annual energy and power costs for the
22 building are certified to be reduced by a percentage
23 greater than 25 percent.
24 ‘‘(3) INCREASED DEDUCTION AMOUNT FOR CER-
25 TAIN PROPERTY.—
† HR 5376 EAS
355
1 ‘‘(A) IN GENERAL.—In the case of any
2 property which satisfies the requirements of sub-
3 paragraph (B), paragraph (2) shall be applied
4 by substituting ‘$2.50’ for ‘$0.50’, ‘$.10’ for
5 ‘$.02’, and ‘$5.00’ for ‘$1.00’.
6 ‘‘(B) PROPERTY REQUIREMENTS.—In the
7 case of any energy efficient commercial building
8 property, energy efficient building retrofit prop-
9 erty, or property installed pursuant to a quali-
10 fied retrofit plan, such property shall meet the
11 requirements of this subparagraph if —
12 ‘‘(i) installation of such property be-
13 gins prior to the date that is 60 days after
14 the Secretary publishes guidance with re-
15 spect to the requirements of paragraphs
16 (4)(A) and (5), or
17 ‘‘(ii) installation of such property sat-
18 isfies the requirements of paragraphs (4)(A)
19 and (5).
20 ‘‘(4) PREVAILING WAGE REQUIREMENTS.—
21 ‘‘(A) IN GENERAL.—The requirements de-
22 scribed in this subparagraph with respect to any
23 property are that the taxpayer shall ensure that
24 any laborers and mechanics employed by the tax-
25 payer or any contractor or subcontractor in the
† HR 5376 EAS
356
1 installation of any property shall be paid wages
2 at rates not less than the prevailing rates for
3 construction, alteration, or repair of a similar
4 character in the locality in which such property
5 is located as most recently determined by the
6 Secretary of Labor, in accordance with sub-
7 chapter IV of chapter 31 of title 40, United
8 States Code.
9 ‘‘(B) CORRECTION AND PENALTY RELATED
10 TO FAILURE TO SATISFY WAGE REQUIRE-
11 MENTS.—Rules similar to the rules of section
12 45(b)(7)(B) shall apply.
13 ‘‘(5) APPRENTICESHIP REQUIREMENTS.—Rules
14 similar to the rules of section 45(b)(8) shall apply.
15 ‘‘(6) REGULATIONS.—The Secretary shall issue
16 such regulations or other guidance as the Secretary
17 determines necessary to carry out the purposes of this
18 subsection, including regulations or other guidance
19 which provides for requirements for recordkeeping or
20 information reporting for purposes of administering
21 the requirements of this subsection.’’.
22 (2) MODIFICATION OF EFFICIENCY STANDARD.—
23 Section 179D(c)(1)(D) is amended by striking ‘‘50
24 percent’’ and inserting ‘‘25 percent’’.
† HR 5376 EAS
357
1 (3) REFERENCE STANDARD.—Section 179D(c)(2)
2 is amended by striking ‘‘the most recent’’ and insert-
3 ing the following: ‘‘the more recent of—
4 ‘‘(A) Standard 90.1-2007 published by the
5 American Society of Heating, Refrigerating, and
6 Air Conditioning Engineers and the Illu-
7 minating Engineering Society of North America,
8 or
9 ‘‘(B) the most recent’’.
10 (4) FINAL DETERMINATION; EXTENSION OF PE-
11 RIOD; PLACED IN SERVICE DEADLINE.—Subparagraph
12 (B) of section 179D(c)(2), as amended by paragraph
13 (3), is amended—
14 (A) by inserting ‘‘for which the Department
15 of Energy has issued a final determination and’’
16 before ‘‘which has been affirmed’’,
17 (B) by striking ‘‘2 years’’ and inserting ‘‘4
18 years’’, and
19 (C) by striking ‘‘that construction of such
20 property begins’’ and inserting ‘‘such property is
21 placed in service’’.
22 (5) ELIMINATION OF PARTIAL ALLOWANCE.—
23 (A) IN GENERAL.—Section 179D(d) is
24 amended—
25 (i) by striking paragraph (1), and
† HR 5376 EAS
358
1 (ii) by redesignating paragraphs (2)
2 through (6) as paragraphs (1) through (5),
3 respectively.
4 (B) CONFORMING AMENDMENTS.—
5 (i) Section 179D(c)(1)(D) is amend-
6 ed—
7 (I) by striking ‘‘subsection (d)(6)’’
8 and inserting ‘‘subsection (d)(5)’’, and
9 (II) by striking ‘‘subsection
10 (d)(2)’’ and inserting ‘‘subsection
11 (d)(1)’’.
12 (ii) Paragraph (2)(A) of section
13 179D(d), as redesignated by subparagraph
14 (A), is amended by striking ‘‘paragraph
15 (2)’’ and inserting ‘‘paragraph (1)’’.
16 (iii) Paragraph (4) of section 179D(d),
17 as redesignated by subparagraph (A), is
18 amended by striking ‘‘paragraph
19 (3)(B)(iii)’’ and inserting ‘‘paragraph
20 (2)(B)(iii)’’.
21 (iv) Section 179D is amended by strik-
22 ing subsection (f).
23 (v) Section 179D(h) is amended by
24 striking ‘‘or (d)(1)(A)’’.
† HR 5376 EAS
359
1 (6) ALLOCATION OF DEDUCTION BY CERTAIN
2 TAX-EXEMPT ENTITIES.—Paragraph (3) of section
3 179D(d), as redesignated by paragraph (5)(A), is
4 amended to read as follows:
5 ‘‘(3) ALLOCATION OF DEDUCTION BY CERTAIN
6 TAX-EXEMPT ENTITIES.—
7 ‘‘(A) IN GENERAL.—In the case of energy ef-
8 ficient commercial building property installed on
9 or in property owned by a specified tax-exempt
10 entity, the Secretary shall promulgate regula-
11 tions or guidance to allow the allocation of the
12 deduction to the person primarily responsible for
13 designing the property in lieu of the owner of
14 such property. Such person shall be treated as
15 the taxpayer for purposes of this section.
16 ‘‘(B) SPECIFIED TAX-EXEMPT ENTITY.—For
17 purposes of this paragraph, the term ‘specified
18 tax-exempt entity’ means—
19 ‘‘(i) the United States, any State or
20 political subdivision thereof, any possession
21 of the United States, or any agency or in-
22 strumentality of any of the foregoing,
23 ‘‘(ii) an Indian tribal government (as
24 defined in section 30D(g)(9)) or Alaska Na-
25 tive Corporation (as defined in section 3 of
† HR 5376 EAS
360
1 the Alaska Native Claims Settlement Act
2 (43 U.S.C. 1602(m)), and
3 ‘‘(iii) any organization exempt from
4 tax imposed by this chapter.’’.
5 (7) ALTERNATIVE DEDUCTION FOR ENERGY EFFI-
6 CIENT BUILDING RETROFIT PROPERTY.—Section
7 179D, as amended by the preceding provisions of this
8 section, is amended by inserting after subsection (e)
9 the following new subsection:
10 ‘‘(f) ALTERNATIVE DEDUCTION FOR ENERGY EFFI-
11 CIENT BUILDING RETROFIT PROPERTY.—
12 ‘‘(1) IN GENERAL.—In the case of a taxpayer
13 which elects (at such time and in such manner as the
14 Secretary may provide) the application of this sub-
15 section with respect to any qualified building, there
16 shall be allowed as a deduction for the taxable year
17 which includes the date of the qualifying final certifi-
18 cation with respect to the qualified retrofit plan of
19 such building, an amount equal to the lesser of—
20 ‘‘(A) the excess described in subsection (b)
21 (determined by substituting ‘energy use inten-
22 sity’ for ‘total annual energy and power costs’ in
23 paragraph (2) thereof), or
24 ‘‘(B) the aggregate adjusted basis (deter-
25 mined after taking into account all adjustments
† HR 5376 EAS
361
1 with respect to such taxable year other than the
2 reduction under subsection (e)) of energy efficient
3 building retrofit property placed in service by
4 the taxpayer pursuant to such qualified retrofit
5 plan.
6 ‘‘(2) QUALIFIED RETROFIT PLAN.—For purposes
7 of this subsection, the term ‘qualified retrofit plan’
8 means a written plan prepared by a qualified profes-
9 sional which specifies modifications to a building
10 which, in the aggregate, are expected to reduce such
11 building’s energy use intensity by 25 percent or more
12 in comparison to the baseline energy use intensity of
13 such building. Such plan shall provide for a qualified
14 professional to—
15 ‘‘(A) as of any date during the 1-year pe-
16 riod ending on the date on which the property
17 installed pursuant to such plan is placed in serv-
18 ice, certify the energy use intensity of such build-
19 ing as of such date,
20 ‘‘(B) certify the status of property installed
21 pursuant to such plan as meeting the require-
22 ments of subparagraphs (B) and (C) of para-
23 graph (3), and
24 ‘‘(C) as of any date that is more than 1
25 year after the date on which the property in-
† HR 5376 EAS
362
1 stalled pursuant to such plan is placed in serv-
2 ice, certify the energy use intensity of such build-
3 ing as of such date.
4 ‘‘(3) ENERGY EFFICIENT BUILDING RETROFIT
5 PROPERTY.—For purposes of this subsection, the term
6 ‘energy efficient building retrofit property’ means
7 property—
8 ‘‘(A) with respect to which depreciation (or
9 amortization in lieu of depreciation) is allow-
10 able,
11 ‘‘(B) which is installed on or in any quali-
12 fied building,
13 ‘‘(C) which is installed as part of—
14 ‘‘(i) the interior lighting systems,
15 ‘‘(ii) the heating, cooling, ventilation,
16 and hot water systems, or
17 ‘‘(iii) the building envelope, and
18 ‘‘(D) which is certified in accordance with
19 paragraph (2)(B) as meeting the requirements of
20 subparagraphs (B) and (C).
21 ‘‘(4) QUALIFIED BUILDING.—For purposes of this
22 subsection, the term ‘qualified building’ means any
23 building which—
24 ‘‘(A) is located in the United States, and
† HR 5376 EAS
363
1 ‘‘(B) was originally placed in service not
2 less than 5 years before the establishment of the
3 qualified retrofit plan with respect to such build-
4 ing.
5 ‘‘(5) QUALIFYING FINAL CERTIFICATION.—For
6 purposes of this subsection, the term ‘qualifying final
7 certification’ means, with respect to any qualified ret-
8 rofit plan, the certification described in paragraph
9 (2)(C) if the energy use intensity certified in such cer-
10 tification is not more than 75 percent of the baseline
11 energy use intensity of the building.
12 ‘‘(6) BASELINE ENERGY USE INTENSITY.—
13 ‘‘(A) IN GENERAL.—For purposes of this
14 subsection, the term ‘baseline energy use inten-
15 sity’ means the energy use intensity certified
16 under paragraph (2)(A), as adjusted to take into
17 account weather.
18 ‘‘(B) DETERMINATION OF ADJUSTMENT.—
19 For purposes of subparagraph (A), the adjust-
20 ments described in such subparagraph shall be
21 determined in such manner as the Secretary
22 may provide.
23 ‘‘(7) OTHER DEFINITIONS.—For purposes of this
24 subsection—
† HR 5376 EAS
364
1 ‘‘(A) ENERGY USE INTENSITY.—The term
2 ‘energy use intensity’ means the annualized,
3 measured site energy use intensity determined in
4 accordance with such regulations or other guid-
5 ance as the Secretary may provide and measured
6 in British thermal units.
7 ‘‘(B) QUALIFIED PROFESSIONAL.—The term
8 ‘qualified professional’ means an individual who
9 is a licensed architect or a licensed engineer and
10 meets such other requirements as the Secretary
11 may provide.
12 ‘‘(8) COORDINATION WITH DEDUCTION OTHER-
13 WISE ALLOWED UNDER SUBSECTION (a).—
14 ‘‘(A) IN GENERAL.—In the case of any
15 building with respect to which an election is
16 made under paragraph (1), the term ‘energy effi-
17 cient commercial building property’ shall not in-
18 clude any energy efficient building retrofit prop-
19 erty with respect to which a deduction is allow-
20 able under this subsection.
21 ‘‘(B) CERTAIN RULES NOT APPLICABLE.—
22 ‘‘(i) IN GENERAL.—Except as provided
23 in clause (ii), subsection (d) shall not apply
24 for purposes of this subsection.
† HR 5376 EAS
365
1 ‘‘(ii) ALLOCATION OF DEDUCTION BY
2 CERTAIN TAX-EXEMPT ENTITIES.—Rules
3 similar to subsection (d)(3) shall apply for
4 purposes of this subsection.’’.
5 (8) INFLATION ADJUSTMENT.—Section 179D(g)
6 is amended—
7 (A) by striking ‘‘2020’’ and inserting
8 ‘‘2022’’,
9 (B) by striking ‘‘or subsection (d)(1)(A)’’,
10 and
11 (C) by striking ‘‘2019’’ and inserting
12 ‘‘2021’’.
13 (b) APPLICATION TO REAL ESTATE INVESTMENT
14 TRUST EARNINGS AND PROFITS.—Section 312(k)(3)(B) is
15 amended—
16 (1) by striking ‘‘For purposes of computing the
17 earnings and profits of a corporation’’ and inserting
18 the following:
19 ‘‘(i) IN GENERAL.—For purposes of
20 computing the earnings and profits of a
21 corporation, except as provided in clause
22 (ii)’’, and
23 (2) by adding at the end the following new
24 clause:
† HR 5376 EAS
366
1 ‘‘(ii) SPECIAL RULE.—In the case of a
2 corporation that is a real estate investment
3 trust, any amount deductible under section
4 179D shall be allowed in the year in which
5 the property giving rise to such deduction is
6 placed in service (or, in the case of energy
7 efficient building retrofit property, the year
8 in which the qualifying final certification is
9 made).’’.
10 (c) CONFORMING AMENDMENT.—Paragraph (1) of sec-
11 tion 179D(d), as redesignated by subsection (a)(5)(A), is
12 amended by striking ‘‘not later than the date that is 2 years
13 before the date that construction of such property begins’’
14 and inserting ‘‘not later than the date that is 4 years before
15 the date such property is placed in service’’.
16 (d) EFFECTIVE DATE.—
17 (1) IN GENERAL.—Except as otherwise provided
18 in this subsection, the amendments made by this sec-
19 tion shall apply to taxable years beginning after De-
20 cember 31, 2022.
21 (2) ALTERNATIVE DEDUCTION FOR ENERGY EFFI-
22 CIENT BUILDING RETROFIT PROPERTY.—Subsection
23 (f) of section 179D of the Internal Revenue Code of
24 1986 (as amended by this section), and any other
25 provision of such section solely for purposes of apply-
† HR 5376 EAS
367
1 ing such subsection, shall apply to property placed in
2 service after December 31, 2022 (in taxable years end-
3 ing after such date) if such property is placed in serv-
4 ice pursuant to qualified retrofit plan (within the
5 meaning of such section) established after such date.
6 SEC. 13304. EXTENSION, INCREASE, AND MODIFICATIONS
7 OF NEW ENERGY EFFICIENT HOME CREDIT.
8 (a) EXTENSION OF CREDIT.—Section 45L(g) is
9 amended by striking ‘‘December 31, 2021’’ and inserting
10 ‘‘December 31, 2032’’.
11 (b) INCREASE IN CREDIT AMOUNTS.—Paragraph (2)
12 of section 45L(a) is amended to read as follows:
13 ‘‘(2) APPLICABLE AMOUNT.—For purposes of
14 paragraph (1), the applicable amount is an amount
15 equal to—
16 ‘‘(A) in the case of a dwelling unit which is
17 eligible to participate in the Energy Star Resi-
18 dential New Construction Program or the En-
19 ergy Star Manufactured New Homes program—
20 ‘‘(i) which meets the requirements of
21 subsection (c)(1)(A) (and which does not
22 meet the requirements of subsection
23 (c)(1)(B)), $2,500, and
24 ‘‘(ii) which meets the requirements of
25 subsection (c)(1)(B), $5,000, and
† HR 5376 EAS
368
1 ‘‘(B) in the case of a dwelling unit which
2 is part of a building eligible to participate in the
3 Energy Star Multifamily New Construction Pro-
4 gram—
5 ‘‘(i) which meets the requirements of
6 subsection (c)(1)(A) (and which does not
7 meet the requirements of subsection
8 (c)(1)(B)), $500, and
9 ‘‘(ii) which meets the requirements of
10 subsection (c)(1)(B), $1,000.’’.
11 (c) MODIFICATION OF ENERGY SAVING REQUIRE-
12 MENTS.—Section 45L(c) is amended to read as follows:
13 ‘‘(c) ENERGY SAVING REQUIREMENTS.—
14 ‘‘(1) IN GENERAL.—
15 ‘‘(A) IN GENERAL.—A dwelling unit meets
16 the requirements of this subparagraph if such
17 dwelling unit meets the requirements of para-
18 graph (2) or (3) (whichever is applicable).
19 ‘‘(B) ZERO ENERGY READY HOME PRO-
20 GRAM.—A dwelling unit meets the requirements
21 of this subparagraph if such dwelling unit is cer-
22 tified as a zero energy ready home under the zero
23 energy ready home program of the Department
24 of Energy as in effect on January 1, 2023 (or
† HR 5376 EAS
369
1 any successor program determined by the Sec-
2 retary).
3 ‘‘(2) SINGLE-FAMILY HOME REQUIREMENTS.—A
4 dwelling unit meets the requirements of this para-
5 graph if—
6 ‘‘(A) such dwelling unit meets—
7 ‘‘(i)(I) in the case of a dwelling unit
8 acquired before January 1, 2025, the En-
9 ergy Star Single-Family New Homes Na-
10 tional Program Requirements 3.1, or
11 ‘‘(II) in the case of a dwelling unit ac-
12 quired after December 31, 2024, the Energy
13 Star Single-Family New Homes National
14 Program Requirements 3.2, and
15 ‘‘(ii) the most recent Energy Star Sin-
16 gle-Family New Homes Program Require-
17 ments applicable to the location of such
18 dwelling unit (as in effect on the latter of
19 January 1, 2023, or January 1 of two cal-
20 endar years prior to the date the dwelling
21 unit was acquired), or
22 ‘‘(B) such dwelling unit meets the most re-
23 cent Energy Star Manufactured Home National
24 program requirements as in effect on the latter
25 of January 1, 2023, or January 1 of two cal-
† HR 5376 EAS
370
1 endar years prior to the date such dwelling unit
2 is acquired.
3 ‘‘(3) MULTI-FAMILY HOME REQUIREMENTS.—A
4 dwelling unit meets the requirements of this para-
5 graph if—
6 ‘‘(A) such dwelling unit meets the most re-
7 cent Energy Star Multifamily New Construction
8 National Program Requirements (as in effect on
9 either January 1, 2023, or January 1 of three
10 calendar years prior to the date the dwelling was
11 acquired, whichever is later), and
12 ‘‘(B) such dwelling unit meets the most re-
13 cent Energy Star Multifamily New Construction
14 Regional Program Requirements applicable to
15 the location of such dwelling unit (as in effect on
16 either January 1, 2023, or January 1 of three
17 calendar years prior to the date the dwelling was
18 acquired, whichever is later).’’.
19 (d) PREVAILING WAGE REQUIREMENT.—Section 45L
20 is amended by redesignating subsection (g) as subsection
21 (h) and by inserting after subsection (f) the following new
22 subsection:
23 ‘‘(g) PREVAILING WAGE REQUIREMENT.—
24 ‘‘(1) IN GENERAL.—In the case of a qualifying
25 residence described in subsection (a)(2)(B) meeting
† HR 5376 EAS
371
1 the prevailing wage requirements of paragraph
2 (2)(A), the credit amount allowed with respect to such
3 residence shall be—
4 ‘‘(A) $2,500 in the case of a residence which
5 meets the requirements of subparagraph (A) of
6 subsection (c)(1) (and which does not meet the
7 requirements of subparagraph (B) of such sub-
8 section), and
9 ‘‘(B) $5,000 in the case of a residence which
10 meets the requirements of subsection (c)(1)(B).
11 ‘‘(2) PREVAILING WAGE REQUIREMENTS.—
12 ‘‘(A) IN GENERAL.—The requirements de-
13 scribed in this subparagraph with respect to any
14 qualified residence are that the taxpayer shall
15 ensure that any laborers and mechanics em-
16 ployed by the taxpayer or any contractor or sub-
17 contractor in the construction of such residence
18 shall be paid wages at rates not less than the
19 prevailing rates for construction, alteration, or
20 repair of a similar character in the locality in
21 which such residence is located as most recently
22 determined by the Secretary of Labor, in accord-
23 ance with subchapter IV of chapter 31 of title 40,
24 United States Code.
† HR 5376 EAS
372
1 ‘‘(B) CORRECTION AND PENALTY RELATED
2 TO FAILURE TO SATISFY WAGE REQUIRE-
3 MENTS.—Rules similar to the rules of section
4 45(b)(7)(B) shall apply.
5 ‘‘(3) REGULATIONS AND GUIDANCE.—The Sec-
6 retary shall issue such regulations or other guidance
7 as the Secretary determines necessary to carry out the
8 purposes of this subsection, including regulations or
9 other guidance which provides for requirements for
10 recordkeeping or information reporting for purposes
11 of administering the requirements of this subsection.’’.
12 (e) BASIS ADJUSTMENT.—Section 45L(e) is amended
13 by inserting after the first sentence the following: ‘‘This sub-
14 section shall not apply for purposes of determining the ad-
15 justed basis of any building under section 42.’’.
16 (f) EFFECTIVE DATES.—
17 (1) IN GENERAL.—Except as provided in para-
18 graph (2), the amendments made by this section shall
19 apply to dwelling units acquired after December 31,
20 2022.
21 (2) EXTENSION OF CREDIT.—The amendments
22 made by subsection (a) shall apply to dwelling units
23 acquired after December 31, 2021.
† HR 5376 EAS
373
1 PART 4—CLEAN VEHICLES
2 SEC. 13401. CLEAN VEHICLE CREDIT.
3 (a) PER VEHICLE DOLLAR LIMITATION.—Section
4 30D(b) is amended by striking paragraphs (2) and (3) and
5 inserting the following:
6 ‘‘(2) CRITICAL MINERALS.—In the case of a vehi-
7 cle with respect to which the requirement described in
8 subsection (e)(1)(A) is satisfied, the amount deter-
9 mined under this paragraph is $3,750.
10 ‘‘(3) BATTERY COMPONENTS.—In the case of a
11 vehicle with respect to which the requirement de-
12 scribed in subsection (e)(2)(A) is satisfied, the amount
13 determined under this paragraph is $3,750.’’.
14 (b) FINAL ASSEMBLY.—Section 30D(d) is amended—
15 (1) in paragraph (1)—
16 (A) in subparagraph (E), by striking ‘‘and’’
17 at the end,
18 (B) in subparagraph (F)(ii), by striking the
19 period at the end and inserting ‘‘, and’’, and
20 (C) by adding at the end the following:
21 ‘‘(G) the final assembly of which occurs
22 within North America.’’,
23 (2) by adding at the end the following:
24 ‘‘(5) FINAL ASSEMBLY.—For purposes of para-
25 graph (1)(G), the term ‘final assembly’ means the
26 process by which a manufacturer produces a new
† HR 5376 EAS
374
1 clean vehicle at, or through the use of, a plant, fac-
2 tory, or other place from which the vehicle is delivered
3 to a dealer or importer with all component parts nec-
4 essary for the mechanical operation of the vehicle in-
5 cluded with the vehicle, whether or not the component
6 parts are permanently installed in or on the vehicle.’’.
7 (c) DEFINITION OF NEW CLEAN VEHICLE.—
8 (1) IN GENERAL.—Section 30D(d), as amended
9 by the preceding provisions of this section, is amend-
10 ed—
11 (A) in the heading, by striking ‘‘QUALIFIED
12 PLUG-IN ELECTRIC DRIVE MOTOR’’ and insert-
13 ing ‘‘CLEAN’’,
14 (B) in paragraph (1)—
15 (i) in the matter preceding subpara-
16 graph (A), by striking ‘‘qualified plug-in
17 electric drive motor’’ and inserting ‘‘clean’’,
18 (ii) in subparagraph (C), by inserting
19 ‘‘qualified’’ before ‘‘manufacturer’’,
20 (iii) in subparagraph (F)—
21 (I) in clause (i), by striking ‘‘4’’
22 and inserting ‘‘7’’, and
23 (II) in clause (ii), by striking
24 ‘‘and’’ at the end,
† HR 5376 EAS
375
1 (iv) in subparagraph (G), by striking
2 the period at the end and inserting ‘‘, and’’,
3 and
4 (v) by adding at the end the following:
5 ‘‘(H) for which the person who sells any ve-
6 hicle to the taxpayer furnishes a report to the
7 taxpayer and to the Secretary, at such time and
8 in such manner as the Secretary shall provide,
9 containing—
10 ‘‘(i) the name and taxpayer identifica-
11 tion number of the taxpayer,
12 ‘‘(ii) the vehicle identification number
13 of the vehicle, unless, in accordance with
14 any applicable rules promulgated by the
15 Secretary of Transportation, the vehicle is
16 not assigned such a number,
17 ‘‘(iii) the battery capacity of the vehi-
18 cle,
19 ‘‘(iv) verification that original use of
20 the vehicle commences with the taxpayer,
21 and
22 ‘‘(v) the maximum credit under this
23 section allowable to the taxpayer with re-
24 spect to the vehicle.’’,
25 (C) in paragraph (3)—
† HR 5376 EAS
376
1 (i) in the heading, by striking ‘‘MANU-
2 FACTURER’’ and inserting ‘‘QUALIFIED
3 MANUFACTURER’’,
4 (ii) by striking ‘‘The term ‘manufac-
5 turer’ has the meaning given such term in’’
6 and inserting ‘‘The term ‘qualified manu-
7 facturer’ means any manufacturer (within
8 the meaning of the’’, and
9 (iii) by inserting ‘‘) which enters into
10 a written agreement with the Secretary
11 under which such manufacturer agrees to
12 make periodic written reports to the Sec-
13 retary (at such times and in such manner
14 as the Secretary may provide) providing ve-
15 hicle identification numbers and such other
16 information related to each vehicle manu-
17 factured by such manufacturer as the Sec-
18 retary may require’’ before the period at the
19 end, and
20 (D) by adding at the end the following:
21 ‘‘(6) NEW QUALIFIED FUEL CELL MOTOR VEHI-
22 CLE.—For purposes of this section, the term ‘new
23 clean vehicle’ shall include any new qualified fuel cell
24 motor vehicle (as defined in section 30B(b)(3)) which
† HR 5376 EAS
377
1 meets the requirements under subparagraphs (G) and
2 (H) of paragraph (1).’’.
3 (2) CONFORMING AMENDMENTS.—Section 30D is
4 amended—
5 (A) in subsection (a), by striking ‘‘new
6 qualified plug-in electric drive motor vehicle’’
7 and inserting ‘‘new clean vehicle’’, and
8 (B) in subsection (b)(1), by striking ‘‘new
9 qualified plug-in electric drive motor vehicle’’
10 and inserting ‘‘new clean vehicle’’.
11 (d) ELIMINATION OF LIMITATION ON NUMBER OF VE-
12 HICLES ELIGIBLE FOR CREDIT.—Section 30D is amended
13 by striking subsection (e).
14 (e) CRITICAL MINERAL AND BATTERY COMPONENT RE-
15 QUIREMENTS.—
16 (1) IN GENERAL.—Section 30D, as amended by
17 the preceding provisions of this section, is amended by
18 inserting after subsection (d) the following:
19 ‘‘(e) CRITICAL MINERAL AND BATTERY COMPONENT
20 REQUIREMENTS.—
21 ‘‘(1) CRITICAL MINERALS REQUIREMENT.—
22 ‘‘(A) IN GENERAL.—The requirement de-
23 scribed in this subparagraph with respect to a
24 vehicle is that, with respect to the battery from
25 which the electric motor of such vehicle draws
† HR 5376 EAS
378
1 electricity, the percentage of the value of the ap-
2 plicable critical minerals (as defined in section
3 45X(c)(6)) contained in such battery that were—
4 ‘‘(i) extracted or processed—
5 ‘‘(I) in the United States, or
6 ‘‘(II) in any country with which
7 the United States has a free trade
8 agreement in effect, or
9 ‘‘(ii) recycled in North America,
10 is equal to or greater than the applicable per-
11 centage (as certified by the qualified manufac-
12 turer, in such form or manner as prescribed by
13 the Secretary).
14 ‘‘(B) APPLICABLE PERCENTAGE.—For pur-
15 poses of subparagraph (A), the applicable per-
16 centage shall be—
17 ‘‘(i) in the case of a vehicle placed in
18 service after the date on which the proposed
19 guidance described in paragraph (3)(B) is
20 issued by the Secretary and before January
21 1, 2024, 40 percent,
22 ‘‘(ii) in the case of a vehicle placed in
23 service during calendar year 2024, 50 per-
24 cent,
† HR 5376 EAS
379
1 ‘‘(iii) in the case of a vehicle placed in
2 service during calendar year 2025, 60 per-
3 cent,
4 ‘‘(iv) in the case of a vehicle placed in
5 service during calendar year 2026, 70 per-
6 cent, and
7 ‘‘(v) in the case of a vehicle placed in
8 service after December 31, 2026, 80 percent.
9 ‘‘(2) BATTERY COMPONENTS.—
10 ‘‘(A) IN GENERAL.—The requirement de-
11 scribed in this subparagraph with respect to a
12 vehicle is that, with respect to the battery from
13 which the electric motor of such vehicle draws
14 electricity, the percentage of the value of the com-
15 ponents contained in such battery that were
16 manufactured or assembled in North America is
17 equal to or greater than the applicable percent-
18 age (as certified by the qualified manufacturer,
19 in such form or manner as prescribed by the Sec-
20 retary).
21 ‘‘(B) APPLICABLE PERCENTAGE.—For pur-
22 poses of subparagraph (A), the applicable per-
23 centage shall be—
24 ‘‘(i) in the case of a vehicle placed in
25 service after the date on which the proposed
† HR 5376 EAS
380
1 guidance described in paragraph (3)(B) is
2 issued by the Secretary and before January
3 1, 2024, 50 percent,
4 ‘‘(ii) in the case of a vehicle placed in
5 service during calendar year 2024 or 2025,
6 60 percent,
7 ‘‘(iii) in the case of a vehicle placed in
8 service during calendar year 2026, 70 per-
9 cent,
10 ‘‘(iv) in the case of a vehicle placed in
11 service during calendar year 2027, 80 per-
12 cent,
13 ‘‘(v) in the case of a vehicle placed in
14 service during calendar year 2028, 90 per-
15 cent,
16 ‘‘(vi) in the case of a vehicle placed in
17 service after December 31, 2028, 100 per-
18 cent.
19 ‘‘(3) REGULATIONS AND GUIDANCE.—
20 ‘‘(A) IN GENERAL.—The Secretary shall
21 issue such regulations or other guidance as the
22 Secretary determines necessary to carry out the
23 purposes of this subsection, including regulations
24 or other guidance which provides for require-
25 ments for recordkeeping or information reporting
† HR 5376 EAS
381
1 for purposes of administering the requirements of
2 this subsection.
3 ‘‘(B) DEADLINE FOR PROPOSED GUID-
4 ANCE.—Not later than December 31, 2022, the
5 Secretary shall issue proposed guidance with re-
6 spect to the requirements under this subsection.’’.
7 (2) EXCLUDED ENTITIES.—Section 30D(d), as
8 amended by the preceding provisions of this section,
9 is amended by adding at the end the following:
10 ‘‘(7) EXCLUDED ENTITIES.—For purposes of this
11 section, the term ‘new clean vehicle’ shall not in-
12 clude—
13 ‘‘(A) any vehicle placed in service after De-
14 cember 31, 2024, with respect to which any of
15 the applicable critical minerals contained in the
16 battery of such vehicle (as described in subsection
17 (e)(1)(A)) were extracted, processed, or recycled
18 by a foreign entity of concern (as defined in sec-
19 tion 40207(a)(5) of the Infrastructure Investment
20 and Jobs Act (42 U.S.C. 18741(a)(5))), or
21 ‘‘(B) any vehicle placed in service after De-
22 cember 31, 2023, with respect to which any of
23 the components contained in the battery of such
24 vehicle (as described in subsection (e)(2)(A))
† HR 5376 EAS
382
1 were manufactured or assembled by a foreign en-
2 tity of concern (as so defined).’’.
3 (f) SPECIAL RULES.—Section 30D(f) is amended by
4 adding at the end the following:
5 ‘‘(8) ONE CREDIT PER VEHICLE.—In the case of
6 any vehicle, the credit described in subsection (a)
7 shall only be allowed once with respect to such vehicle,
8 as determined based upon the vehicle identification
9 number of such vehicle.
10 ‘‘(9) VIN REQUIREMENT.—No credit shall be al-
11 lowed under this section with respect to any vehicle
12 unless the taxpayer includes the vehicle identification
13 number of such vehicle on the return of tax for the
14 taxable year.
15 ‘‘(10) LIMITATION BASED ON MODIFIED AD-
16 JUSTED GROSS INCOME.—
17 ‘‘(A) IN GENERAL.—No credit shall be al-
18 lowed under subsection (a) for any taxable year
19 if—
20 ‘‘(i) the lesser of—
21 ‘‘(I) the modified adjusted gross
22 income of the taxpayer for such taxable
23 year, or
† HR 5376 EAS
383
1 ‘‘(II) the modified adjusted gross
2 income of the taxpayer for the pre-
3 ceding taxable year, exceeds
4 ‘‘(ii) the threshold amount.
5 ‘‘(B) THRESHOLD AMOUNT.—For purposes
6 of subparagraph (A)(ii), the threshold amount
7 shall be—
8 ‘‘(i) in the case of a joint return or a
9 surviving spouse (as defined in section
10 2(a)), $300,000,
11 ‘‘(ii) in the case of a head of household
12 (as defined in section 2(b)), $225,000, and
13 ‘‘(iii) in the case of a taxpayer not de-
14 scribed in clause (i) or (ii), $150,000.
15 ‘‘(C) MODIFIED ADJUSTED GROSS IN-
16 COME.—For purposes of this paragraph, the
17 term ‘modified adjusted gross income’ means ad-
18 justed gross income increased by any amount ex-
19 cluded from gross income under section 911, 931,
20 or 933.
21 ‘‘(11) MANUFACTURER’S SUGGESTED RETAIL
22 PRICE LIMITATION.—
23 ‘‘(A) IN GENERAL.—No credit shall be al-
24 lowed under subsection (a) for a vehicle with a
† HR 5376 EAS
384
1 manufacturer’s suggested retail price in excess of
2 the applicable limitation.
3 ‘‘(B) APPLICABLE LIMITATION.—For pur-
4 poses of subparagraph (A), the applicable limita-
5 tion for each vehicle classification is as follows:
6 ‘‘(i) VANS.—In the case of a van,
7 $80,000.
8 ‘‘(ii) SPORT UTILITY VEHICLES.—In
9 the case of a sport utility vehicle, $80,000.
10 ‘‘(iii) PICKUP TRUCKS.—In the case of
11 a pickup truck, $80,000.
12 ‘‘(iv) OTHER.—In the case of any other
13 vehicle, $55,000.
14 ‘‘(C) REGULATIONS AND GUIDANCE.—For
15 purposes of this paragraph, the Secretary shall
16 prescribe such regulations or other guidance as
17 the Secretary determines necessary for deter-
18 mining vehicle classifications using criteria
19 similar to that employed by the Environmental
20 Protection Agency and the Department of the
21 Energy to determine size and class of vehicles.’’.
22 (g) TRANSFER OF CREDIT.—
23 (1) IN GENERAL.—Section 30D is amended by
24 striking subsection (g) and inserting the following:
25 ‘‘(g) TRANSFER OF CREDIT.—
† HR 5376 EAS
385
1 ‘‘(1) IN GENERAL.—Subject to such regulations
2 or other guidance as the Secretary determines nec-
3 essary, if the taxpayer who acquires a new clean vehi-
4 cle elects the application of this subsection with re-
5 spect to such vehicle, the credit which would (but for
6 this subsection) be allowed to such taxpayer with re-
7 spect to such vehicle shall be allowed to the eligible en-
8 tity specified in such election (and not to such tax-
9 payer).
10 ‘‘(2) ELIGIBLE ENTITY.—For purposes of this
11 subsection, the term ‘eligible entity’ means, with re-
12 spect to the vehicle for which the credit is allowed
13 under subsection (a), the dealer which sold such vehi-
14 cle to the taxpayer and has—
15 ‘‘(A) subject to paragraph (4), registered
16 with the Secretary for purposes of this para-
17 graph, at such time, and in such form and man-
18 ner, as the Secretary may prescribe,
19 ‘‘(B) prior to the election described in para-
20 graph (1) and not later than at the time of such
21 sale, disclosed to the taxpayer purchasing such
22 vehicle—
23 ‘‘(i) the manufacturer’s suggested retail
24 price,
† HR 5376 EAS
386
1 ‘‘(ii) the value of the credit allowed
2 and any other incentive available for the
3 purchase of such vehicle, and
4 ‘‘(iii) the amount provided by the deal-
5 er to such taxpayer as a condition of the
6 election described in paragraph (1),
7 ‘‘(C) not later than at the time of such sale,
8 made payment to such taxpayer (whether in cash
9 or in the form of a partial payment or down
10 payment for the purchase of such vehicle) in an
11 amount equal to the credit otherwise allowable to
12 such taxpayer, and
13 ‘‘(D) with respect to any incentive otherwise
14 available for the purchase of a vehicle for which
15 a credit is allowed under this section, including
16 any incentive in the form of a rebate or discount
17 provided by the dealer or manufacturer, ensured
18 that—
19 ‘‘(i) the availability or use of such in-
20 centive shall not limit the ability of a tax-
21 payer to make an election described in
22 paragraph (1), and
23 ‘‘(ii) such election shall not limit the
24 value or use of such incentive.
† HR 5376 EAS
387
1 ‘‘(3) TIMING.—An election described in para-
2 graph (1) shall be made by the taxpayer not later
3 than the date on which the vehicle for which the credit
4 is allowed under subsection (a) is purchased.
5 ‘‘(4) REVOCATION OF REGISTRATION.—Upon de-
6 termination by the Secretary that a dealer has failed
7 to comply with the requirements described in para-
8 graph (2), the Secretary may revoke the registration
9 (as described in subparagraph (A) of such paragraph)
10 of such dealer.
11 ‘‘(5) TAX TREATMENT OF PAYMENTS.—With re-
12 spect to any payment described in paragraph (2)(C),
13 such payment—
14 ‘‘(A) shall not be includible in the gross in-
15 come of the taxpayer, and
16 ‘‘(B) with respect to the dealer, shall not be
17 deductible under this title.
18 ‘‘(6) APPLICATION OF CERTAIN OTHER REQUIRE-
19 MENTS.—In the case of any election under paragraph
20 (1) with respect to any vehicle—
21 ‘‘(A) the requirements of paragraphs (1)
22 and (2) of subsection (f) shall apply to the tax-
23 payer who acquired the vehicle in the same man-
24 ner as if the credit determined under this section
† HR 5376 EAS
388
1 with respect to such vehicle were allowed to such
2 taxpayer,
3 ‘‘(B) paragraph (6) of such subsection shall
4 not apply, and
5 ‘‘(C) the requirement of paragraph (9) of
6 such subsection (f) shall be treated as satisfied if
7 the eligible entity provides the vehicle identifica-
8 tion number of such vehicle to the Secretary in
9 such manner as the Secretary may provide.
10 ‘‘(7) ADVANCE PAYMENT TO REGISTERED DEAL-
11 ERS.—
12 ‘‘(A) IN GENERAL.—The Secretary shall es-
13 tablish a program to make advance payments to
14 any eligible entity in an amount equal to the cu-
15 mulative amount of the credits allowed under
16 subsection (a) with respect to any vehicles sold
17 by such entity for which an election described in
18 paragraph (1) has been made.
19 ‘‘(B) EXCESSIVE PAYMENTS.—Rules similar
20 to the rules of section 6417(d)(6) shall apply for
21 purposes of this paragraph.
22 ‘‘(C) TREATMENT OF ADVANCE PAY-
23 MENTS.—For purposes of section 1324 of title 31,
24 United States Code, the payments under sub-
25 paragraph (A) shall be treated in the same man-
† HR 5376 EAS
389
1 ner as a refund due from a credit provision re-
2 ferred to in subsection (b)(2) of such section.
3 ‘‘(8) DEALER.—For purposes of this subsection,
4 the term ‘dealer’ means a person licensed by a State,
5 the District of Columbia, the Commonwealth of Puer-
6 to Rico, any other territory or possession of the
7 United States, an Indian tribal government, or any
8 Alaska Native Corporation (as defined in section 3 of
9 the Alaska Native Claims Settlement Act (43 U.S.C.
10 1602(m)) to engage in the sale of vehicles.
11 ‘‘(9) INDIAN TRIBAL GOVERNMENT.—For pur-
12 poses of this subsection, the term ‘Indian tribal gov-
13 ernment’ means the recognized governing body of any
14 Indian or Alaska Native tribe, band, nation, pueblo,
15 village, community, component band, or component
16 reservation, individually identified (including par-
17 enthetically) in the list published most recently as of
18 the date of enactment of this subsection pursuant to
19 section 104 of the Federally Recognized Indian Tribe
20 List Act of 1994 (25 U.S.C. 5131).
21 ‘‘(10) RECAPTURE.—In the case of any taxpayer
22 who has made an election described in paragraph (1)
23 with respect to a new clean vehicle and received a
24 payment described in paragraph (2)(C) from an eligi-
25 ble entity, if the credit under subsection (a) would
† HR 5376 EAS
390
1 otherwise (but for this subsection) not be allowable to
2 such taxpayer pursuant to the application of sub-
3 section (f)(10), the tax imposed on such taxpayer
4 under this chapter for the taxable year in which such
5 vehicle was placed in service shall be increased by the
6 amount of the payment received by such taxpayer.’’.
7 (2) CONFORMING AMENDMENTS.—Section 30D,
8 as amended by the preceding provisions of this sec-
9 tion, is amended—
10 (A) in subsection (d)(1)(H) of such sec-
11 tion—
12 (i) in clause (iv), by striking ‘‘and’’ at
13 the end,
14 (ii) in clause (v), by striking the pe-
15 riod at the end and inserting ‘‘, and’’, and
16 (iii) by adding at the end the fol-
17 lowing:
18 ‘‘(vi) in the case of a taxpayer who
19 makes an election under subsection (g)(1),
20 any amount described in subsection
21 (g)(2)(C) which has been provided to such
22 taxpayer.’’, and
23 (B) in subsection (f)—
24 (i) by striking paragraph (3), and
† HR 5376 EAS
391
1 (ii) in paragraph (8), by inserting ‘‘,
2 including any vehicle with respect to which
3 the taxpayer elects the application of sub-
4 section (g)’’ before the period at the end.
5 (h) TERMINATION.—Section 30D is amended by add-
6 ing at the end the following:
7 ‘‘(h) TERMINATION.—No credit shall be allowed under
8 this section with respect to any vehicle placed in service
9 after December 31, 2032.’’.
10 (i) ADDITIONAL CONFORMING AMENDMENTS.—
11 (1) The heading of section 30D is amended by
12 striking ‘‘NEW QUALIFIED PLUG-IN ELECTRIC
13 DRIVE MOTOR VEHICLES’’ and inserting ‘‘CLEAN
14 VEHICLE CREDIT’’.
15 (2) Section 30B is amended—
16 (A) in subsection (h)(8), by striking ‘‘, ex-
17 cept that no benefit shall be recaptured if such
18 property ceases to be eligible for such credit by
19 reason of conversion to a qualified plug-in elec-
20 tric drive motor vehicle’’, and
21 (B) by striking subsection (i).
22 (3) Section 38(b)(30) is amended by striking
23 ‘‘qualified plug-in electric drive motor’’ and inserting
24 ‘‘clean’’.
† HR 5376 EAS
392
1 (4) Section 6213(g)(2), as amended by the pre-
2 ceding provisions of this Act, is amended—
3 (A) in subparagraph (R), by striking ‘‘and’’
4 at the end,
5 (B) in subparagraph (S), by striking the
6 period at the end and inserting ‘‘, and’’, and
7 (C) by inserting after subparagraph (S) the
8 following:
9 ‘‘(T) an omission of a correct vehicle identi-
10 fication number required under section 30D(f)(9)
11 (relating to credit for new clean vehicles) to be
12 included on a return.’’.
13 (5) Section 6501(m) is amended by striking
14 ‘‘30D(e)(4)’’ and inserting ‘‘30D(f)(6)’’.
15 (6) The table of sections for subpart B of part IV
16 of subchapter A of chapter 1 is amended by striking
17 the item relating to section 30D and inserting after
18 the item relating to section 30C the following item:
‘‘Sec. 30D. Clean vehicle credit.’’.
19 (j) GROSS-UP OF DIRECT SPENDING.—Beginning in
20 fiscal year 2023 and each fiscal year thereafter, the portion
21 of any credit allowed to an eligible entity (as defined in
22 section 30D(g)(2) of the Internal Revenue Code of 1986)
23 pursuant to an election made under section 30D(g) of the
24 Internal Revenue Code of 1986 that is direct spending shall
25 be increased by 6.0445 percent.
† HR 5376 EAS
393
1 (k) EFFECTIVE DATES.—
2 (1) IN GENERAL.—Except as provided in para-
3 graphs (2), (3), (4), and (5), the amendments made
4 by this section shall apply to vehicles placed in serv-
5 ice after December 31, 2022.
6 (2) FINAL ASSEMBLY.—The amendments made
7 by subsection (b) shall apply to vehicles sold after the
8 date of enactment of this Act.
9 (3) PER VEHICLE DOLLAR LIMITATION AND RE-
10 LATED REQUIREMENTS.—The amendments made by
11 subsections (a) and (e) shall apply to vehicles placed
12 in service after the date on which the proposed guid-
13 ance described in paragraph (3)(B) of section 30D(e)
14 of the Internal Revenue Code of 1986 (as added by
15 subsection (e)) is issued by the Secretary of the Treas-
16 ury (or the Secretary’s delegate).
17 (4) TRANSFER OF CREDIT.—The amendments
18 made by subsection (g) shall apply to vehicles placed
19 in service after December 31, 2023.
20 (5) ELIMINATION OF MANUFACTURER LIMITA-
21 TION.—The amendment made by subsection (d) shall
22 apply to vehicles sold after December 31, 2022.
23 (l) TRANSITION RULE.—Solely for purposes of the ap-
24 plication of section 30D of the Internal Revenue Code of
25 1986, in the case of a taxpayer that—
† HR 5376 EAS
394
1 (1) after December 31, 2021, and before the date
2 of enactment of this Act, purchased, or entered into
3 a written binding contract to purchase, a new quali-
4 fied plug-in electric drive motor vehicle (as defined in
5 section 30D(d)(1) of the Internal Revenue Code of
6 1986, as in effect on the day before the date of enact-
7 ment of this Act), and
8 (2) placed such vehicle in service on or after the
9 date of enactment of this Act,
10 such taxpayer may elect (at such time, and in such form
11 and manner, as the Secretary of the Treasury, or the Sec-
12 retary’s delegate, may prescribe) to treat such vehicle as
13 having been placed in service on the day before the date
14 of enactment of this Act.
15 SEC. 13402. CREDIT FOR PREVIOUSLY-OWNED CLEAN VEHI-
16 CLES.
17 (a) IN GENERAL.—Subpart A of part IV of subchapter
18 A of chapter 1 is amended by inserting after section 25D
19 the following new section:
20 ‘‘SEC. 25E. PREVIOUSLY-OWNED CLEAN VEHICLES.
21 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of a quali-
22 fied buyer who during a taxable year places in service a
23 previously-owned clean vehicle, there shall be allowed as a
24 credit against the tax imposed by this chapter for the tax-
25 able year an amount equal to the lesser of—
† HR 5376 EAS
395
1 ‘‘(1) $4,000, or
2 ‘‘(2) the amount equal to 30 percent of the sale
3 price with respect to such vehicle.
4 ‘‘(b) LIMITATION BASED ON MODIFIED ADJUSTED
5 GROSS INCOME.—
6 ‘‘(1) IN GENERAL.—No credit shall be allowed
7 under subsection (a) for any taxable year if—
8 ‘‘(A) the lesser of—
9 ‘‘(i) the modified adjusted gross income
10 of the taxpayer for such taxable year, or
11 ‘‘(ii) the modified adjusted gross in-
12 come of the taxpayer for the preceding tax-
13 able year, exceeds
14 ‘‘(B) the threshold amount.
15 ‘‘(2) THRESHOLD AMOUNT.—For purposes of
16 paragraph (1)(B), the threshold amount shall be—
17 ‘‘(A) in the case of a joint return or a sur-
18 viving spouse (as defined in section 2(a)),
19 $150,000,
20 ‘‘(B) in the case of a head of household (as
21 defined in section 2(b)), $112,500, and
22 ‘‘(C) in the case of a taxpayer not described
23 in subparagraph (A) or (B), $75,000.
24 ‘‘(3) MODIFIED ADJUSTED GROSS INCOME.—For
25 purposes of this subsection, the term ‘modified ad-
† HR 5376 EAS
396
1 justed gross income’ means adjusted gross income in-
2 creased by any amount excluded from gross income
3 under section 911, 931, or 933.
4 ‘‘(c) DEFINITIONS.—For purposes of this section—
5 ‘‘(1) PREVIOUSLY-OWNED CLEAN VEHICLE.—The
6 term ‘previously-owned clean vehicle’ means, with re-
7 spect to a taxpayer, a motor vehicle—
8 ‘‘(A) the model year of which is at least 2
9 years earlier than the calendar year in which the
10 taxpayer acquires such vehicle,
11 ‘‘(B) the original use of which commences
12 with a person other than the taxpayer,
13 ‘‘(C) which is acquired by the taxpayer in
14 a qualified sale, and
15 ‘‘(D) which—
16 ‘‘(i) meets the requirements of subpara-
17 graphs (C), (D), (E), (F), and (H) (except
18 for clause (iv) thereof) of section 30D(d)(1),
19 or
20 ‘‘(ii) is a motor vehicle which—
21 ‘‘(I) satisfies the requirements
22 under subparagraphs (A) and (B) of
23 section 30B(b)(3), and
24 ‘‘(II) has a gross vehicle weight
25 rating of less than 14,000 pounds.
† HR 5376 EAS
397
1 ‘‘(2) QUALIFIED SALE.—The term ‘qualified sale’
2 means a sale of a motor vehicle—
3 ‘‘(A) by a dealer (as defined in section
4 30D(g)(8)),
5 ‘‘(B) for a sale price which does not exceed
6 $25,000, and
7 ‘‘(C) which is the first transfer since the
8 date of the enactment of this section to a quali-
9 fied buyer other than the person with whom the
10 original use of such vehicle commenced.
11 ‘‘(3) QUALIFIED BUYER.—The term ‘qualified
12 buyer’ means, with respect to a sale of a motor vehi-
13 cle, a taxpayer—
14 ‘‘(A) who is an individual,
15 ‘‘(B) who purchases such vehicle for use and
16 not for resale,
17 ‘‘(C) with respect to whom no deduction is
18 allowable with respect to another taxpayer under
19 section 151, and
20 ‘‘(D) who has not been allowed a credit
21 under this section for any sale during the 3-year
22 period ending on the date of the sale of such ve-
23 hicle.
24 ‘‘(4) MOTOR VEHICLE; CAPACITY.—The terms
25 ‘motor vehicle’ and ‘capacity’ have the meaning given
† HR 5376 EAS
398
1 such terms in paragraphs (2) and (4) of section
2 30D(d), respectively.
3 ‘‘(d) VIN NUMBER REQUIREMENT.—No credit shall be
4 allowed under subsection (a) with respect to any vehicle un-
5 less the taxpayer includes the vehicle identification number
6 of such vehicle on the return of tax for the taxable year.
7 ‘‘(e) APPLICATION OF CERTAIN RULES.—For purposes
8 of this section, rules similar to the rules of section 30D(f)
9 (without regard to paragraph (10) or (11) thereof) shall
10 apply for purposes of this section.
11 ‘‘(f) TERMINATION.—No credit shall be allowed under
12 this section with respect to any vehicle acquired after De-
13 cember 31, 2032.’’.
14 (b) TRANSFER OF CREDIT.—Section 25E, as added by
15 subsection (a), is amended—
16 (1) by redesignating subsection (f) as subsection
17 (g), and
18 (2) by inserting after subsection (e) the following:
19 ‘‘(f) TRANSFER OF CREDIT.—Rules similar to the rules
20 of section 30D(g) shall apply.’’.
21 (c) CONFORMING AMENDMENTS.—Section 6213(g)(2),
22 as amended by the preceding provisions of this Act, is
23 amended—
24 (1) in subparagraph (S), by striking ‘‘and’’ at
25 the end,
† HR 5376 EAS
399
1 (2) in subparagraph (T), by striking the period
2 at the end and inserting ‘‘, and’’, and
3 (3) by inserting after subparagraph (T) the fol-
4 lowing:
5 ‘‘(U) an omission of a correct vehicle identi-
6 fication number required under section 25E(d)
7 (relating to credit for previously-owned clean ve-
8 hicles) to be included on a return.’’.
9 (d) CLERICAL AMENDMENT.—The table of sections for
10 subpart A of part IV of subchapter A of chapter 1 is amend-
11 ed by inserting after the item relating to section 25D the
12 following new item:
‘‘Sec. 25E. Previously-owned clean vehicles.’’.
13 (e) EFFECTIVE DATE.—
14 (1) IN GENERAL.—Except as provided in para-
15 graph (2), the amendments made by this section shall
16 apply to vehicles acquired after December 31, 2022.
17 (2) TRANSFER OF CREDIT.—The amendments
18 made by subsection (b) shall apply to vehicles ac-
19 quired after December 31, 2023.
20 SEC. 13403. QUALIFIED COMMERCIAL CLEAN VEHICLES.
21 (a) IN GENERAL.—Subpart D of part IV of subchapter
22 A of chapter 1, as amended by the preceding provisions of
23 this Act, is amended by adding at the end the following
24 new section:
† HR 5376 EAS
400
1 ‘‘SEC. 45W. CREDIT FOR QUALIFIED COMMERCIAL CLEAN
2 VEHICLES.
3 ‘‘(a) IN GENERAL.—For purposes of section 38, the
4 qualified commercial clean vehicle credit for any taxable
5 year is an amount equal to the sum of the credit amounts
6 determined under subsection (b) with respect to each quali-
7 fied commercial clean vehicle placed in service by the tax-
8 payer during the taxable year.
9 ‘‘(b) PER VEHICLE AMOUNT.—
10 ‘‘(1) IN GENERAL.—Subject to paragraph (4), the
11 amount determined under this subsection with respect
12 to any qualified commercial clean vehicle shall be
13 equal to the lesser of—
14 ‘‘(A) 15 percent of the basis of such vehicle
15 (30 percent in the case of a vehicle not powered
16 by a gasoline or diesel internal combustion en-
17 gine), or
18 ‘‘(B) the incremental cost of such vehicle.
19 ‘‘(2) INCREMENTAL COST.—For purposes of
20 paragraph (1)(B), the incremental cost of any quali-
21 fied commercial clean vehicle is an amount equal to
22 the excess of the purchase price for such vehicle over
23 such price of a comparable vehicle.
24 ‘‘(3) COMPARABLE VEHICLE.—For purposes of
25 this subsection, the term ‘comparable vehicle’ means,
26 with respect to any qualified commercial clean vehi-
† HR 5376 EAS
401
1 cle, any vehicle which is powered solely by a gasoline
2 or diesel internal combustion engine and which is
3 comparable in size and use to such vehicle.
4 ‘‘(4) LIMITATION.—The amount determined
5 under this subsection with respect to any qualified
6 commercial clean vehicle shall not exceed—
7 ‘‘(A) in the case of a vehicle which has a
8 gross vehicle weight rating of less than 14,000
9 pounds, $7,500, and
10 ‘‘(B) in the case of a vehicle not described
11 in subparagraph (A), $40,000.
12 ‘‘(c) QUALIFIED COMMERCIAL CLEAN VEHICLE.—For
13 purposes of this section, the term ‘qualified commercial
14 clean vehicle’ means any vehicle which—
15 ‘‘(1) meets the requirements of section
16 30D(d)(1)(C) and is acquired for use or lease by the
17 taxpayer and not for resale,
18 ‘‘(2) either—
19 ‘‘(A) meets the requirements of subpara-
20 graph (D) of section 30D(d)(1) and is manufac-
21 tured primarily for use on public streets, roads,
22 and highways (not including a vehicle operated
23 exclusively on a rail or rails), or
24 ‘‘(B) is mobile machinery, as defined in sec-
25 tion 4053(8) (including vehicles that are not de-
† HR 5376 EAS
402
1 signed to perform a function of transporting a
2 load over the public highways),
3 ‘‘(3) either—
4 ‘‘(A) is propelled to a significant extent by
5 an electric motor which draws electricity from a
6 battery which has a capacity of not less than 15
7 kilowatt hours (or, in the case of a vehicle which
8 has a gross vehicle weight rating of less than
9 14,000 pounds, 7 kilowatt hours) and is capable
10 of being recharged from an external source of
11 electricity, or
12 ‘‘(B) is a motor vehicle which satisfies the
13 requirements under subparagraphs (A) and (B)
14 of section 30B(b)(3), and
15 ‘‘(4) is of a character subject to the allowance for
16 depreciation.
17 ‘‘(d) SPECIAL RULES.—
18 ‘‘(1) IN GENERAL.—Rules similar to the rules
19 under subsection (f) of section 30D (without regard to
20 paragraph (10) or (11) thereof) shall apply for pur-
21 poses of this section.
22 ‘‘(2) VEHICLES PLACED IN SERVICE BY TAX-EX-
23 EMPT ENTITIES.—Subsection (c)(4) shall not apply to
24 any vehicle which is not subject to a lease and which
† HR 5376 EAS
403
1 is placed in service by a tax-exempt entity described
2 in clause (i), (ii), or (iv) of section 168(h)(2)(A).
3 ‘‘(3) NO DOUBLE BENEFIT.—No credit shall be
4 allowed under this section with respect to any vehicle
5 for which a credit was allowed under section 30D.
6 ‘‘(e) VIN NUMBER REQUIREMENT.—No credit shall be
7 determined under subsection (a) with respect to any vehicle
8 unless the taxpayer includes the vehicle identification num-
9 ber of such vehicle on the return of tax for the taxable year.
10 ‘‘(f) REGULATIONS AND GUIDANCE.—The Secretary
11 shall issue such regulations or other guidance as the Sec-
12 retary determines necessary to carry out the purposes of this
13 section, including regulations or other guidance relating to
14 determination of the incremental cost of any qualified com-
15 mercial clean vehicle.
16 ‘‘(g) TERMINATION.—No credit shall be determined
17 under this section with respect to any vehicle acquired after
18 December 31, 2032.’’.
19 (b) CONFORMING AMENDMENTS.—
20 (1) Section 38(b), as amended by the preceding
21 provisions of this Act, is amended—
22 (A) in paragraph (35), by striking ‘‘plus’’
23 at the end,
24 (B) in paragraph (36), by striking the pe-
25 riod at the end and inserting ‘‘, plus’’, and
† HR 5376 EAS
404
1 (C) by adding at the end the following new
2 paragraph:
3 ‘‘(37) the qualified commercial clean vehicle
4 credit determined under section 45W.’’.
5 (2) Section 6213(g)(2), as amended by the pre-
6 ceding provisions of this Act, is amended—
7 (A) in subparagraph (T), by striking ‘‘and’’
8 at the end,
9 (B) in subparagraph (U), by striking the
10 period at the end and inserting ‘‘, and’’, and
11 (C) by inserting after subparagraph (U) the
12 following:
13 ‘‘(V) an omission of a correct vehicle identi-
14 fication number required under section 45W(e)
15 (relating to commercial clean vehicle credit) to be
16 included on a return.’’.
17 (3) The table of sections for subpart D of part
18 IV of subchapter A of chapter 1, as amended by the
19 preceding provisions of this Act, is amended by add-
20 ing at the end the following new item:
‘‘Sec. 45W. Qualified commercial clean vehicle credit.’’.
21 (c) EFFECTIVE DATE.—The amendments made by this
22 section shall apply to vehicles acquired after December 31,
23 2022.
† HR 5376 EAS
405
1 SEC. 13404. ALTERNATIVE FUEL REFUELING PROPERTY
2 CREDIT.
3 (a) IN GENERAL.—Section 30C(g) is amended by
4 striking ‘‘December 31, 2021’’ and inserting ‘‘December 31,
5 2032’’.
6 (b) CREDIT FOR PROPERTY OF A CHARACTER SUB-
7 JECT TO DEPRECIATION.—
8 (1) IN GENERAL.—Section 30C(a) is amended by
9 inserting ‘‘(6 percent in the case of property of a
10 character subject to depreciation)’’ after ‘‘30 percent’’.
11 (2) MODIFICATION OF CREDIT LIMITATION.—
12 Subsection (b) of section 30C is amended—
13 (A) in the matter preceding paragraph
14 (1)—
15 (i) by striking ‘‘with respect to all’’
16 and inserting ‘‘with respect to any single
17 item of’’, and
18 (ii) by striking ‘‘at a location’’, and
19 (B) in paragraph (1), by striking ‘‘$30,000
20 in the case of a property’’ and inserting
21 ‘‘$100,000 in the case of any such item of prop-
22 erty’’.
23 (3) BIDIRECTIONAL CHARGING EQUIPMENT IN-
24 CLUDED AS QUALIFIED ALTERNATIVE FUEL VEHICLE
25 REFUELING PROPERTY.—Section 30C(c) is amended
26 to read as follows:
† HR 5376 EAS
406
1 ‘‘(c) QUALIFIED ALTERNATIVE FUEL VEHICLE RE-
2 FUELING PROPERTY.—For purposes of this section—
3 ‘‘(1) IN GENERAL.—The term ‘qualified alter-
4 native fuel vehicle refueling property’ has the same
5 meaning as the term ‘qualified clean-fuel vehicle re-
6 fueling property’ would have under section 179A if—
7 ‘‘(A) paragraph (1) of section 179A(d) did
8 not apply to property installed on property
9 which is used as the principal residence (within
10 the meaning of section 121) of the taxpayer, and
11 ‘‘(B) only the following were treated as
12 clean-burning fuels for purposes of section
13 179A(d):
14 ‘‘(i) Any fuel at least 85 percent of the
15 volume of which consists of one or more of
16 the following: ethanol, natural gas, com-
17 pressed natural gas, liquified natural gas,
18 liquefied petroleum gas, or hydrogen.
19 ‘‘(ii) Any mixture—
20 ‘‘(I) which consists of two or more
21 of the following: biodiesel (as defined in
22 section 40A(d)(1)), diesel fuel (as de-
23 fined in section 4083(a)(3)), or ker-
24 osene, and
† HR 5376 EAS
407
1 ‘‘(II) at least 20 percent of the
2 volume of which consists of biodiesel
3 (as so defined) determined without re-
4 gard to any kerosene in such mixture.
5 ‘‘(iii) Electricity.
6 ‘‘(2) BIDIRECTIONAL CHARGING EQUIPMENT.—
7 Property shall not fail to be treated as qualified alter-
8 native fuel vehicle refueling property solely because
9 such property—
10 ‘‘(A) is capable of charging the battery of a
11 motor vehicle propelled by electricity, and
12 ‘‘(B) allows discharging electricity from
13 such battery to an electric load external to such
14 motor vehicle.’’.
15 (c) CERTAIN ELECTRIC CHARGING STATIONS IN-
16 CLUDED AS QUALIFIED ALTERNATIVE FUEL VEHICLE RE-
17 FUELING PROPERTY.—Section 30C is amended by redesig-
18 nating subsections (f) and (g) as subsections (g) and (h),
19 respectively, and by inserting after subsection (e) the fol-
20 lowing:
21 ‘‘(f) SPECIAL RULE FOR ELECTRIC CHARGING STA-
22 TIONS FOR CERTAIN VEHICLES WITH 2 OR 3 WHEELS.—
23 For purposes of this section—
24 ‘‘(1) IN GENERAL.—The term ‘qualified alter-
25 native fuel vehicle refueling property’ includes any
† HR 5376 EAS
408
1 property described in subsection (c) for the recharging
2 of a motor vehicle described in paragraph (2), but
3 only if such property—
4 ‘‘(A) meets the requirements of subsection
5 (a)(2), and
6 ‘‘(B) is of a character subject to deprecia-
7 tion.
8 ‘‘(2) MOTOR VEHICLE.—A motor vehicle is de-
9 scribed in this paragraph if the motor vehicle—
10 ‘‘(A) is manufactured primarily for use on
11 public streets, roads, or highways (not including
12 a vehicle operated exclusively on a rail or rails),
13 ‘‘(B) has 2 or 3 wheels, and
14 ‘‘(C) is propelled by electricity.’’.
15 (d) WAGE AND APPRENTICESHIP REQUIREMENTS.—
16 Section 30C, as amended by this section, is further amended
17 by redesignating subsections (g) and (h) as subsections (h)
18 and (i) and by inserting after subsection (f) the following
19 new subsection:
20 ‘‘(g) WAGE AND APPRENTICESHIP REQUIREMENTS.—
21 ‘‘(1) INCREASED CREDIT AMOUNT.—
22 ‘‘(A) IN GENERAL.—In the case of any
23 qualified alternative fuel vehicle refueling project
24 which satisfies the requirements of subparagraph
25 (C), the amount of the credit determined under
† HR 5376 EAS
409
1 subsection (a) for any qualified alternative fuel
2 vehicle refueling property of a character subject
3 to an allowance for depreciation which is part of
4 such project shall be equal to such amount (deter-
5 mined without regard to this sentence) multi-
6 plied by 5.
7 ‘‘(B) QUALIFIED ALTERNATIVE FUEL VEHI-
8 CLE REFUELING PROJECT.—For purposes of this
9 subsection, the term ‘qualified alternative fuel ve-
10 hicle refueling project’ means a project consisting
11 of one or more properties that are part of a sin-
12 gle project.
13 ‘‘(C) PROJECT REQUIREMENTS.—A project
14 meets the requirements of this subparagraph if it
15 is one of the following:
16 ‘‘(i) A project the construction of which
17 begins prior to the date that is 60 days
18 after the Secretary publishes guidance with
19 respect to the requirements of paragraphs
20 (2)(A) and (3).
21 ‘‘(ii) A project which satisfies the re-
22 quirements of paragraphs (2)(A) and (3).
23 ‘‘(2) PREVAILING WAGE REQUIREMENTS.—
24 ‘‘(A) IN GENERAL.—The requirements de-
25 scribed in this subparagraph with respect to any
† HR 5376 EAS
410
1 qualified alternative fuel vehicle refueling project
2 are that the taxpayer shall ensure that any la-
3 borers and mechanics employed by the taxpayer
4 or any contractor or subcontractor in the con-
5 struction of any qualified alternative fuel vehicle
6 refueling property which is part of such project
7 shall be paid wages at rates not less than the
8 prevailing rates for construction, alteration, or
9 repair of a similar character in the locality in
10 which such project is located as most recently de-
11 termined by the Secretary of Labor, in accord-
12 ance with subchapter IV of chapter 31 of title 40,
13 United States Code.
14 ‘‘(B) CORRECTION AND PENALTY RELATED
15 TO FAILURE TO SATISFY WAGE REQUIRE-
16 MENTS.—Rules similar to the rules of section
17 45(b)(7)(B) shall apply.
18 ‘‘(3) APPRENTICESHIP REQUIREMENTS.—Rules
19 similar to the rules of section 45(b)(8) shall apply.
20 ‘‘(4) REGULATIONS AND GUIDANCE.—The Sec-
21 retary shall issue such regulations or other guidance
22 as the Secretary determines necessary to carry out the
23 purposes of this subsection, including regulations or
24 other guidance which provides for requirements for
† HR 5376 EAS
411
1 recordkeeping or information reporting for purposes
2 of administering the requirements of this subsection.’’.
3 (e) ELIGIBLE CENSUS TRACTS.—Subsection (c) of sec-
4 tion 30C, as amended by subsection (b)(3), is amended by
5 adding at the end the following:
6 ‘‘(3) PROPERTY REQUIRED TO BE LOCATED IN
7 ELIGIBLE CENSUS TRACTS.—
8 ‘‘(A) IN GENERAL.—Property shall not be
9 treated as qualified alternative fuel vehicle re-
10 fueling property unless such property is placed
11 in service in an eligible census tract.
12 ‘‘(B) ELIGIBLE CENSUS TRACT.—
13 ‘‘(i) IN GENERAL.—For purposes of
14 this paragraph, the term ‘eligible census
15 tract’ means any population census tract
16 which—
17 ‘‘(I) is described in section
18 45D(e), or
19 ‘‘(II) is not an urban area.
20 ‘‘(ii) URBAN AREA.—For purposes of
21 clause (i)(II), the term ‘urban area’ means
22 a census tract (as defined by the Bureau of
23 the Census) which, according to the most re-
24 cent decennial census, has been designated
† HR 5376 EAS
412
1 as an urban area by the Secretary of Com-
2 merce.’’.
3 (f) EFFECTIVE DATE.—
4 (1) IN GENERAL.—Except as provided in para-
5 graph (2), the amendments made by this section shall
6 apply to property placed in service after December
7 31, 2022.
8 (2) EXTENSION.—The amendments made by sub-
9 section (a) shall apply to property placed in service
10 after December 31, 2021.
11 PART 5—INVESTMENT IN CLEAN ENERGY
12 MANUFACTURING AND ENERGY SECURITY
13 SEC. 13501. EXTENSION OF THE ADVANCED ENERGY
14 PROJECT CREDIT.
15 (a) EXTENSION OF CREDIT.—Section 48C is amended
16 by redesignating subsection (e) as subsection (f) and by in-
17 serting after subsection (d) the following new subsection:
18 ‘‘(e) ADDITIONAL ALLOCATIONS.—
19 ‘‘(1) IN GENERAL.—Not later than 180 days
20 after the date of enactment of this subsection, the Sec-
21 retary shall establish a program to consider and
22 award certifications for qualified investments eligible
23 for credits under this section to qualifying advanced
24 energy project sponsors.
† HR 5376 EAS
413
1 ‘‘(2) LIMITATION.—The total amount of credits
2 which may be allocated under the program established
3 under paragraph (1) shall not exceed
4 $10,000,000,000, of which not greater than
5 $6,000,000,000 may be allocated to qualified invest-
6 ments which are not located within a census tract
7 which—
8 ‘‘(A) is described in clause (iii) of section
9 45(b)(11)(B), and
10 ‘‘(B) prior to the date of enactment of this
11 subsection, had no project which received a cer-
12 tification and allocation of credits under sub-
13 section (d).
14 ‘‘(3) CERTIFICATIONS.—
15 ‘‘(A) APPLICATION REQUIREMENT.—Each
16 applicant for certification under this subsection
17 shall submit an application at such time and
18 containing such information as the Secretary
19 may require.
20 ‘‘(B) TIME TO MEET CRITERIA FOR CER-
21 TIFICATION.—Each applicant for certification
22 shall have 2 years from the date of acceptance by
23 the Secretary of the application during which to
24 provide to the Secretary evidence that the re-
25 quirements of the certification have been met.
† HR 5376 EAS
414
1 ‘‘(C) PERIOD OF ISSUANCE.—An applicant
2 which receives a certification shall have 2 years
3 from the date of issuance of the certification in
4 order to place the project in service and to notify
5 the Secretary that such project has been so placed
6 in service, and if such project is not placed in
7 service by that time period, then the certification
8 shall no longer be valid. If any certification is
9 revoked under this subparagraph, the amount of
10 the limitation under paragraph (2) shall be in-
11 creased by the amount of the credit with respect
12 to such revoked certification.
13 ‘‘(D) LOCATION OF PROJECT.—In the case
14 of an applicant which receives a certification, if
15 the Secretary determines that the project has
16 been placed in service at a location which is ma-
17 terially different than the location specified in
18 the application for such project, the certification
19 shall no longer be valid.
20 ‘‘(4) CREDIT RATE CONDITIONED UPON WAGE
21 AND APPRENTICESHIP REQUIREMENTS.—
22 ‘‘(A) BASE RATE.—For purposes of alloca-
23 tions under this subsection, the amount of the
24 credit determined under subsection (a) shall be
† HR 5376 EAS
415
1 determined by substituting ‘6 percent’ for ‘30
2 percent’.
3 ‘‘(B) ALTERNATIVE RATE.—In the case of
4 any project which satisfies the requirements of
5 paragraphs (5)(A) and (6), subparagraph (A)
6 shall not apply.
7 ‘‘(5) PREVAILING WAGE REQUIREMENTS.—
8 ‘‘(A) IN GENERAL.—The requirements de-
9 scribed in this subparagraph with respect to a
10 project are that the taxpayer shall ensure that
11 any laborers and mechanics employed by the tax-
12 payer or any contractor or subcontractor in the
13 re-equipping, expansion, or establishment of a
14 manufacturing facility shall be paid wages at
15 rates not less than the prevailing rates for con-
16 struction, alteration, or repair of a similar char-
17 acter in the locality in which such project is lo-
18 cated as most recently determined by the Sec-
19 retary of Labor, in accordance with subchapter
20 IV of chapter 31 of title 40, United States Code.
21 ‘‘(B) CORRECTION AND PENALTY RELATED
22 TO FAILURE TO SATISFY WAGE REQUIRE-
23 MENTS.—Rules similar to the rules of section
24 45(b)(7)(B) shall apply.
† HR 5376 EAS
416
1 ‘‘(6) APPRENTICESHIP REQUIREMENTS.—Rules
2 similar to the rules of section 45(b)(8) shall apply.
3 ‘‘(7) DISCLOSURE OF ALLOCATIONS.—The Sec-
4 retary shall, upon making a certification under this
5 subsection, publicly disclose the identity of the appli-
6 cant and the amount of the credit with respect to such
7 applicant.’’.
8 (b) MODIFICATION OF QUALIFYING ADVANCED ENERGY
9 PROJECTS.—Section 48C(c)(1)(A) is amended—
10 (1) by inserting ‘‘, any portion of the qualified
11 investment of which is certified by the Secretary
12 under subsection (e) as eligible for a credit under this
13 section’’ after ‘‘means a project’’,
14 (2) in clause (i)—
15 (A) by striking ‘‘a manufacturing facility
16 for the production of’’ and inserting ‘‘an indus-
17 trial or manufacturing facility for the produc-
18 tion or recycling of’’,
19 (B) in clause (I), by inserting ‘‘water,’’
20 after ‘‘sun,’’,
21 (C) in clause (II), by striking ‘‘an energy
22 storage system for use with electric or hybrid-
23 electric motor vehicles’’ and inserting ‘‘energy
24 storage systems and components’’,
† HR 5376 EAS
417
1 (D) in clause (III), by striking ‘‘grids to
2 support the transmission of intermittent sources
3 of renewable energy, including storage of such
4 energy’’ and inserting ‘‘grid modernization
5 equipment or components’’,
6 (E) in subclause (IV), by striking ‘‘and se-
7 quester carbon dioxide emissions’’ and inserting
8 ‘‘, remove, use, or sequester carbon oxide emis-
9 sions’’,
10 (F) by striking subclause (V) and inserting
11 the following:
12 ‘‘(V) equipment designed to refine,
13 electrolyze, or blend any fuel, chemical,
14 or product which is—
15 ‘‘(aa) renewable, or
16 ‘‘(bb) low-carbon and low-
17 emission,’’,
18 (G) by striking subclause (VI),
19 (H) by redesignating subclause (VII) as
20 subclause (IX),
21 (I) by inserting after subclause (V) the fol-
22 lowing new subclauses:
23 ‘‘(VI) property designed to
24 produce energy conservation tech-
† HR 5376 EAS
418
1 nologies (including residential, com-
2 mercial, and industrial applications),
3 ‘‘(VII) light-, medium-, or heavy-
4 duty electric or fuel cell vehicles, as
5 well as—
6 ‘‘(aa) technologies, compo-
7 nents, or materials for such vehi-
8 cles, and
9 ‘‘(bb) associated charging or
10 refueling infrastructure,
11 ‘‘(VIII) hybrid vehicles with a
12 gross vehicle weight rating of not less
13 than 14,000 pounds, as well as tech-
14 nologies, components, or materials for
15 such vehicles, or’’, and
16 (J) in subclause (IX), as so redesignated, by
17 striking ‘‘and’’ at the end, and
18 (3) by striking clause (ii) and inserting the fol-
19 lowing:
20 ‘‘(ii) which re-equips an industrial or
21 manufacturing facility with equipment de-
22 signed to reduce greenhouse gas emissions
23 by at least 20 percent through the installa-
24 tion of—
† HR 5376 EAS
419
1 ‘‘(I) low- or zero-carbon process
2 heat systems,
3 ‘‘(II) carbon capture, transport,
4 utilization and storage systems,
5 ‘‘(III) energy efficiency and re-
6 duction in waste from industrial proc-
7 esses, or
8 ‘‘(IV) any other industrial tech-
9 nology designed to reduce greenhouse
10 gas emissions, as determined by the
11 Secretary, or
12 ‘‘(iii) which re-equips, expands, or es-
13 tablishes an industrial facility for the proc-
14 essing, refining, or recycling of critical ma-
15 terials (as defined in section 7002(a) of the
16 Energy Act of 2020 (30 U.S.C. 1606(a)).’’.
17 (c) CONFORMING AMENDMENT.—Subparagraph (A) of
18 section 48C(c)(2) is amended to read as follows:
19 ‘‘(A) which is necessary for—
20 ‘‘(i) the production or recycling of
21 property described in clause (i) of para-
22 graph (1)(A),
23 ‘‘(ii) re-equipping an industrial or
24 manufacturing facility described in clause
25 (ii) of such paragraph, or
† HR 5376 EAS
420
1 ‘‘(iii) re-equipping, expanding, or es-
2 tablishing an industrial facility described
3 in clause (iii) of such paragraph,’’.
4 (d) DENIAL OF DOUBLE BENEFIT.—48C(f), as redesig-
5 nated by this section, is amended by striking ‘‘or 48B’’ and
6 inserting ‘‘48B, 48E, 45Q, or 45V’’.
7 (e) EFFECTIVE DATE.—The amendments made by this
8 section shall take effect on January 1, 2023.
9 SEC. 13502. ADVANCED MANUFACTURING PRODUCTION
10 CREDIT.
11 (a) IN GENERAL.—Subpart D of part IV of subchapter
12 A of chapter 1, as amended by the preceding provisions of
13 this Act, is amended by adding at the end the following
14 new section:
15 ‘‘SEC. 45X. ADVANCED MANUFACTURING PRODUCTION
16 CREDIT.
17 ‘‘(a) IN GENERAL.—
18 ‘‘(1) ALLOWANCE OF CREDIT.—For purposes of
19 section 38, the advanced manufacturing production
20 credit for any taxable year is an amount equal to the
21 sum of the credit amounts determined under sub-
22 section (b) with respect to each eligible component
23 which is—
24 ‘‘(A) produced by the taxpayer, and
† HR 5376 EAS
421
1 ‘‘(B) during the taxable year, sold by such
2 taxpayer to an unrelated person.
3 ‘‘(2) PRODUCTION AND SALE MUST BE IN TRADE
4 OR BUSINESS.—Any eligible component produced and
5 sold by the taxpayer shall be taken into account only
6 if the production and sale described in paragraph (1)
7 is in a trade or business of the taxpayer.
8 ‘‘(3) UNRELATED PERSON.—
9 ‘‘(A) IN GENERAL.—For purposes of this
10 subsection, a taxpayer shall be treated as selling
11 components to an unrelated person if such com-
12 ponent is sold to such person by a person related
13 to the taxpayer.
14 ‘‘(B) ELECTION.—
15 ‘‘(i) IN GENERAL.—At the election of
16 the taxpayer (in such form and manner as
17 the Secretary may prescribe), a sale of com-
18 ponents by such taxpayer to a related per-
19 son shall be deemed to have been made to an
20 unrelated person.
21 ‘‘(ii) REQUIREMENT.—As a condition
22 of, and prior to, any election described in
23 clause (i), the Secretary may require such
24 information or registration as the Secretary
25 deems necessary for purposes of preventing
† HR 5376 EAS
422
1 duplication, fraud, or any improper or ex-
2 cessive amount determined under paragraph
3 (1).
4 ‘‘(b) CREDIT AMOUNT.—
5 ‘‘(1) IN GENERAL.—Subject to paragraph (3), the
6 amount determined under this subsection with respect
7 to any eligible component, including any eligible com-
8 ponent it incorporates, shall be equal to—
9 ‘‘(A) in the case of a thin film photovoltaic
10 cell or a crystalline photovoltaic cell, an amount
11 equal to the product of—
12 ‘‘(i) 4 cents, multiplied by
13 ‘‘(ii) the capacity of such cell (ex-
14 pressed on a per direct current watt basis),
15 ‘‘(B) in the case of a photovoltaic wafer,
16 $12 per square meter,
17 ‘‘(C) in the case of solar grade polysilicon,
18 $3 per kilogram,
19 ‘‘(D) in the case of a polymeric backsheet,
20 40 cents per square meter,
21 ‘‘(E) in the case of a solar module, an
22 amount equal to the product of—
23 ‘‘(i) 7 cents, multiplied by
24 ‘‘(ii) the capacity of such module (ex-
25 pressed on a per direct current watt basis),
† HR 5376 EAS
423
1 ‘‘(F) in the case of a wind energy compo-
2 nent—
3 ‘‘(i) if such component is a related off-
4 shore wind vessel, an amount equal to 10
5 percent of the sales price of such vessel, and
6 ‘‘(ii) if such component is not described
7 in clause (i), an amount equal to the prod-
8 uct of—
9 ‘‘(I) the applicable amount with
10 respect to such component (as deter-
11 mined under paragraph (2)(A)), multi-
12 plied by
13 ‘‘(II) the total rated capacity (ex-
14 pressed on a per watt basis) of the
15 completed wind turbine for which such
16 component is designed,
17 ‘‘(G) in the case of a torque tube, 87 cents
18 per kilogram,
19 ‘‘(H) in the case of a structural fastener,
20 $2.28 per kilogram,
21 ‘‘(I) in the case of an inverter, an amount
22 equal to the product of—
23 ‘‘(i) the applicable amount with respect
24 to such inverter (as determined under para-
25 graph (2)(B)), multiplied by
† HR 5376 EAS
424
1 ‘‘(ii) the capacity of such inverter (ex-
2 pressed on a per alternating current watt
3 basis),
4 ‘‘(J) in the case of electrode active mate-
5 rials, an amount equal to 10 percent of the costs
6 incurred by the taxpayer with respect to produc-
7 tion of such materials,
8 ‘‘(K) in the case of a battery cell, an
9 amount equal to the product of—
10 ‘‘(i) $35, multiplied by
11 ‘‘(ii) subject to paragraph (4), the ca-
12 pacity of such battery cell (expressed on a
13 kilowatt-hour basis),
14 ‘‘(L) in the case of a battery module, an
15 amount equal to the product of—
16 ‘‘(i) $10 (or, in the case of a battery
17 module which does not use battery cells,
18 $45), multiplied by
19 ‘‘(ii) subject to paragraph (4), the ca-
20 pacity of such battery module (expressed on
21 a kilowatt-hour basis), and
22 ‘‘(M) in the case of any applicable critical
23 mineral, an amount equal to 10 percent of the
24 costs incurred by the taxpayer with respect to
25 production of such mineral.
† HR 5376 EAS
425
1 ‘‘(2) APPLICABLE AMOUNTS.—
2 ‘‘(A) WIND ENERGY COMPONENTS.—For
3 purposes of paragraph (1)(F)(ii), the applicable
4 amount with respect to any wind energy compo-
5 nent shall be—
6 ‘‘(i) in the case of a blade, 2 cents,
7 ‘‘(ii) in the case of a nacelle, 5 cents,
8 ‘‘(iii) in the case of a tower, 3 cents,
9 and
10 ‘‘(iv) in the case of an offshore wind
11 foundation—
12 ‘‘(I) which uses a fixed platform,
13 2 cents, or
14 ‘‘(II) which uses a floating plat-
15 form, 4 cents.
16 ‘‘(B) INVERTERS.—For purposes of para-
17 graph (1)(I), the applicable amount with respect
18 to any inverter shall be—
19 ‘‘(i) in the case of a central inverter,
20 0.25 cents,
21 ‘‘(ii) in the case of a utility inverter,
22 1.5 cents,
23 ‘‘(iii) in the case of a commercial in-
24 verter, 2 cents,
† HR 5376 EAS
426
1 ‘‘(iv) in the case of a residential in-
2 verter, 6.5 cents, and
3 ‘‘(v) in the case of a microinverter or
4 a distributed wind inverter, 11 cents.
5 ‘‘(3) PHASE OUT.—
6 ‘‘(A) IN GENERAL.—Subject to subpara-
7 graph (C), in the case of any eligible component
8 sold after December 31, 2029, the amount deter-
9 mined under this subsection with respect to such
10 component shall be equal to the product of—
11 ‘‘(i) the amount determined under
12 paragraph (1) with respect to such compo-
13 nent, as determined without regard to this
14 paragraph, multiplied by
15 ‘‘(ii) the phase out percentage under
16 subparagraph (B).
17 ‘‘(B) PHASE OUT PERCENTAGE.—The phase
18 out percentage under this subparagraph is equal
19 to—
20 ‘‘(i) in the case of an eligible compo-
21 nent sold during calendar year 2030, 75
22 percent,
23 ‘‘(ii) in the case of an eligible compo-
24 nent sold during calendar year 2031, 50
25 percent,
† HR 5376 EAS
427
1 ‘‘(iii) in the case of an eligible compo-
2 nent sold during calendar year 2032, 25
3 percent,
4 ‘‘(iv) in the case of an eligible compo-
5 nent sold after December 31, 2032, 0 per-
6 cent.
7 ‘‘(C) EXCEPTION.—For purposes of deter-
8 mining the amount under this subsection with
9 respect to any applicable critical mineral, this
10 paragraph shall not apply.
11 ‘‘(4) LIMITATION ON CAPACITY OF BATTERY
12 CELLS AND BATTERY MODULES.—
13 ‘‘(A) IN GENERAL.—For purposes of sub-
14 paragraph (K)(ii) or (L)(ii) of paragraph (1),
15 the capacity determined under either subpara-
16 graph with respect to a battery cell or battery
17 module shall not exceed a capacity-to-power
18 ratio of 100:1.
19 ‘‘(B) CAPACITY-TO-POWER RATIO.—For pur-
20 poses of this paragraph, the term ‘capacity-to-
21 power ratio’ means, with respect to a battery cell
22 or battery module, the ratio of the capacity of
23 such cell or module to the maximum discharge
24 amount of such cell or module.
25 ‘‘(c) DEFINITIONS.—For purposes of this section—
† HR 5376 EAS
428
1 ‘‘(1) ELIGIBLE COMPONENT.—
2 ‘‘(A) IN GENERAL.—The term ‘eligible com-
3 ponent’ means—
4 ‘‘(i) any solar energy component,
5 ‘‘(ii) any wind energy component,
6 ‘‘(iii) any inverter described in sub-
7 paragraphs (B) through (G) of paragraph
8 (2),
9 ‘‘(iv) any qualifying battery compo-
10 nent, and
11 ‘‘(v) any applicable critical mineral.
12 ‘‘(B) APPLICATION WITH OTHER CRED-
13 ITS.—The term ‘eligible component’ shall not in-
14 clude any property which is produced at a facil-
15 ity if the basis of any property which is part of
16 such facility is taken into account for purposes
17 of the credit allowed under section 48C after the
18 date of the enactment of this section.
19 ‘‘(2) INVERTERS.—
20 ‘‘(A) IN GENERAL.—The term ‘inverter’
21 means an end product which is suitable to con-
22 vert direct current electricity from 1 or more
23 solar modules or certified distributed wind en-
24 ergy systems into alternating current electricity.
† HR 5376 EAS
429
1 ‘‘(B) CENTRAL INVERTER.—The term ‘cen-
2 tral inverter’ means an inverter which is suitable
3 for large utility-scale systems and has a capacity
4 which is greater than 1,000 kilowatts (expressed
5 on a per alternating current watt basis).
6 ‘‘(C) COMMERCIAL INVERTER.—The term
7 ‘commercial inverter’ means an inverter which—
8 ‘‘(i) is suitable for commercial or util-
9 ity-scale applications,
10 ‘‘(ii) has a rated output of 208, 480,
11 600, or 800 volt three-phase power, and
12 ‘‘(iii) has a capacity which is not less
13 than 20 kilowatts and not greater than 125
14 kilowatts (expressed on a per alternating
15 current watt basis).
16 ‘‘(D) DISTRIBUTED WIND INVERTER.—
17 ‘‘(i) IN GENERAL.—The term ‘distrib-
18 uted wind inverter’ means an inverter
19 which—
20 ‘‘(I) is used in a residential or
21 non-residential system which utilizes 1
22 or more certified distributed wind en-
23 ergy systems, and
24 ‘‘(II) has a rated output of not
25 greater than 150 kilowatts.
† HR 5376 EAS
430
1 ‘‘(ii) CERTIFIED DISTRIBUTED WIND
2 ENERGY SYSTEM.—The term ‘certified dis-
3 tributed wind energy system’ means a wind
4 energy system which is certified by an ac-
5 credited certification agency to meet Stand-
6 ard 9.1-2009 of the American Wind Energy
7 Association (including any subsequent revi-
8 sions to or modifications of such Standard
9 which have been approved by the American
10 National Standards Institute).
11 ‘‘(E) MICROINVERTER.—The term ‘micro-
12 inverter’ means an inverter which—
13 ‘‘(i) is suitable to connect with one
14 solar module,
15 ‘‘(ii) has a rated output of—
16 ‘‘(I) 120 or 240 volt single-phase
17 power, or
18 ‘‘(II) 208 or 480 volt three-phase
19 power, and
20 ‘‘(iii) has a capacity which is not
21 greater than 650 watts (expressed on a per
22 alternating current watt basis).
23 ‘‘(F) RESIDENTIAL INVERTER.—The term
24 ‘residential inverter’ means an inverter which—
25 ‘‘(i) is suitable for a residence,
† HR 5376 EAS
431
1 ‘‘(ii) has a rated output of 120 or 240
2 volt single-phase power, and
3 ‘‘(iii) has a capacity which is not
4 greater than 20 kilowatts (expressed on a
5 per alternating current watt basis).
6 ‘‘(G) UTILITY INVERTER.—The term ‘utility
7 inverter’ means an inverter which—
8 ‘‘(i) is suitable for commercial or util-
9 ity-scale systems,
10 ‘‘(ii) has a rated output of not less
11 than 600 volt three-phase power, and
12 ‘‘(iii) has a capacity which is greater
13 than 125 kilowatts and not greater than
14 1000 kilowatts (expressed on a per alter-
15 nating current watt basis)
16 ‘‘(3) SOLAR ENERGY COMPONENT.—
17 ‘‘(A) IN GENERAL.—The term ‘solar energy
18 component’ means any of the following:
19 ‘‘(i) Solar modules.
20 ‘‘(ii) Photovoltaic cells.
21 ‘‘(iii) Photovoltaic wafers.
22 ‘‘(iv) Solar grade polysilicon.
23 ‘‘(v) Torque tubes or structural fas-
24 teners.
25 ‘‘(vi) Polymeric backsheets.
† HR 5376 EAS
432
1 ‘‘(B) ASSOCIATED DEFINITIONS.—
2 ‘‘(i) PHOTOVOLTAIC CELL.—The term
3 ‘photovoltaic cell’ means the smallest semi-
4 conductor element of a solar module which
5 performs the immediate conversion of light
6 into electricity.
7 ‘‘(ii) PHOTOVOLTAIC WAFER.—The
8 term ‘photovoltaic wafer’ means a thin slice,
9 sheet, or layer of semiconductor material of
10 at least 240 square centimeters—
11 ‘‘(I) produced by a single manu-
12 facturer either—
13 ‘‘(aa) directly from molten or
14 evaporated solar grade polysilicon
15 or deposition of solar grade thin
16 film semiconductor photon ab-
17 sorber layer, or
18 ‘‘(bb) through formation of
19 an ingot from molten polysilicon
20 and subsequent slicing, and
21 ‘‘(II) which comprises the sub-
22 strate or absorber layer of one or more
23 photovoltaic cells.
24 ‘‘(iii) POLYMERIC BACKSHEET.—The
25 term ‘polymeric backsheet’ means a sheet on
† HR 5376 EAS
433
1 the back of a solar module which acts as an
2 electric insulator and protects the inner
3 components of such module from the sur-
4 rounding environment.
5 ‘‘(iv) SOLAR GRADE POLYSILICON.—
6 The term ‘solar grade polysilicon’ means
7 silicon which is—
8 ‘‘(I) suitable for use in photo-
9 voltaic manufacturing, and
10 ‘‘(II) purified to a minimum pu-
11 rity of 99.999999 percent silicon by
12 mass.
13 ‘‘(v) SOLAR MODULE.—The term ‘solar
14 module’ means the connection and lamina-
15 tion of photovoltaic cells into an environ-
16 mentally protected final assembly which
17 is—
18 ‘‘(I) suitable to generate electricity
19 when exposed to sunlight, and
20 ‘‘(II) ready for installation with-
21 out an additional manufacturing proc-
22 ess.
23 ‘‘(vi) SOLAR TRACKER.—The term
24 ‘solar tracker’ means a mechanical system
25 that moves solar modules according to the
† HR 5376 EAS
434
1 position of the sun and to increase energy
2 output.
3 ‘‘(vii) SOLAR TRACKER COMPO-
4 NENTS.—
5 ‘‘(I) TORQUE TUBE.—The term
6 ‘torque tube’ means a structural steel
7 support element (including longitu-
8 dinal purlins) which—
9 ‘‘(aa) is part of a solar
10 tracker,
11 ‘‘(bb) is of any cross-sectional
12 shape,
13 ‘‘(cc) may be assembled from
14 individually manufactured seg-
15 ments,
16 ‘‘(dd) spans longitudinally
17 between foundation posts,
18 ‘‘(ee) supports solar panels
19 and is connected to a mounting
20 attachment for solar panels (with
21 or without separate module inter-
22 face rails), and
23 ‘‘(ff) is rotated by means of a
24 drive system.
† HR 5376 EAS
435
1 ‘‘(II) STRUCTURAL FASTENER.—
2 The term ‘structural fastener’ means a
3 component which is used—
4 ‘‘(aa) to connect the mechan-
5 ical and drive system components
6 of a solar tracker to the founda-
7 tion of such solar tracker,
8 ‘‘(bb) to connect torque tubes
9 to drive assemblies, or
10 ‘‘(cc) to connect segments of
11 torque tubes to one another.
12 ‘‘(4) WIND ENERGY COMPONENT.—
13 ‘‘(A) IN GENERAL.—The term ‘wind energy
14 component’ means any of the following:
15 ‘‘(i) Blades.
16 ‘‘(ii) Nacelles.
17 ‘‘(iii) Towers.
18 ‘‘(iv) Offshore wind foundations.
19 ‘‘(v) Related offshore wind vessels.
20 ‘‘(B) ASSOCIATED DEFINITIONS.—
21 ‘‘(i) BLADE.—The term ‘blade’ means
22 an airfoil-shaped blade which is responsible
23 for converting wind energy to low-speed ro-
24 tational energy.
† HR 5376 EAS
436
1 ‘‘(ii) OFFSHORE WIND FOUNDATION.—
2 The term ‘offshore wind foundation’ means
3 the component (including transition piece)
4 which secures an offshore wind tower and
5 any above-water turbine components to the
6 seafloor using—
7 ‘‘(I) fixed platforms, such as off-
8 shore wind monopiles, jackets, or grav-
9 ity-based foundations, or
10 ‘‘(II) floating platforms and asso-
11 ciated mooring systems.
12 ‘‘(iii) NACELLE.—The term ‘nacelle’
13 means the assembly of the drivetrain and
14 other tower-top components of a wind tur-
15 bine (with the exception of the blades and
16 the hub) within their cover housing.
17 ‘‘(iv) RELATED OFFSHORE WIND VES-
18 SEL.—The term ‘related offshore wind ves-
19 sel’ means any vessel which is purpose-built
20 or retrofitted for purposes of the develop-
21 ment, transport, installation, operation, or
22 maintenance of offshore wind energy compo-
23 nents.
24 ‘‘(v) TOWER.—The term ‘tower’ means
25 a tubular or lattice structure which sup-
† HR 5376 EAS
437
1 ports the nacelle and rotor of a wind tur-
2 bine.
3 ‘‘(5) QUALIFYING BATTERY COMPONENT.—
4 ‘‘(A) IN GENERAL.—The term ‘qualifying
5 battery component’ means any of the following:
6 ‘‘(i) Electrode active materials.
7 ‘‘(ii) Battery cells.
8 ‘‘(iii) Battery modules.
9 ‘‘(B) ASSOCIATED DEFINITIONS.—
10 ‘‘(i) ELECTRODE ACTIVE MATERIAL.—
11 The term ‘electrode active material’ means
12 cathode materials, anode materials, anode
13 foils, and electrochemically active materials,
14 including solvents, additives, and electrolyte
15 salts that contribute to the electrochemical
16 processes necessary for energy storage .
17 ‘‘(ii) BATTERY CELL.—The term ‘bat-
18 tery cell’ means an electrochemical cell—
19 ‘‘(I) comprised of 1 or more posi-
20 tive electrodes and 1 or more negative
21 electrodes,
22 ‘‘(II) with an energy density of
23 not less than 100 watt-hours per liter,
24 and
† HR 5376 EAS
438
1 ‘‘(III) capable of storing at least
2 12 watt-hours of energy.
3 ‘‘(iii) BATTERY MODULE.—The term
4 ‘battery module’ means a module—
5 ‘‘(I)(aa) in the case of a module
6 using battery cells, with 2 or more bat-
7 tery cells which are configured elec-
8 trically, in series or parallel, to create
9 voltage or current, as appropriate, to a
10 specified end use, or
11 ‘‘(bb) with no battery cells, and
12 ‘‘(II) with an aggregate capacity
13 of not less than 7 kilowatt-hours (or, in
14 the case of a module for a hydrogen
15 fuel cell vehicle, not less than 1 kilo-
16 watt-hour).
17 ‘‘(6) APPLICABLE CRITICAL MINERALS.—The
18 term ‘applicable critical mineral’ means any of the
19 following:
20 ‘‘(A) ALUMINUM.—Aluminum which is—
21 ‘‘(i) converted from bauxite to a min-
22 imum purity of 99 percent alumina by
23 mass, or
24 ‘‘(ii) purified to a minimum purity of
25 99.9 percent aluminum by mass.
† HR 5376 EAS
439
1 ‘‘(B) ANTIMONY.—Antimony which is—
2 ‘‘(i) converted to antimony trisulfide
3 concentrate with a minimum purity of 90
4 percent antimony trisulfide by mass, or
5 ‘‘(ii) purified to a minimum purity of
6 99.65 percent antimony by mass.
7 ‘‘(C) BARITE.—Barite which is barium sul-
8 fate purified to a minimum purity of 80 percent
9 barite by mass.
10 ‘‘(D) BERYLLIUM.—Beryllium which is—
11 ‘‘(i) converted to copper-beryllium
12 master alloy, or
13 ‘‘(ii) purified to a minimum purity of
14 99 percent beryllium by mass.
15 ‘‘(E) CERIUM.—Cerium which is—
16 ‘‘(i) converted to cerium oxide which is
17 purified to a minimum purity of 99.9 per-
18 cent cerium oxide by mass, or
19 ‘‘(ii) purified to a minimum purity of
20 99 percent cerium by mass.
21 ‘‘(F) CESIUM.—Cesium which is—
22 ‘‘(i) converted to cesium formate or ce-
23 sium carbonate, or
24 ‘‘(ii) purified to a minimum purity of
25 99 percent cesium by mass.
† HR 5376 EAS
440
1 ‘‘(G) CHROMIUM.—Chromium which is—
2 ‘‘(i) converted to ferrochromium con-
3 sisting of not less than 60 percent chro-
4 mium by mass, or
5 ‘‘(ii) purified to a minimum purity of
6 99 percent chromium by mass.
7 ‘‘(H) COBALT.—Cobalt which is—
8 ‘‘(i) converted to cobalt sulfate, or
9 ‘‘(ii) purified to a minimum purity of
10 99.6 percent cobalt by mass.
11 ‘‘(I) DYSPROSIUM.—Dysprosium which is—
12 ‘‘(i) converted to not less than 99 per-
13 cent pure dysprosium iron alloy by mass, or
14 ‘‘(ii) purified to a minimum purity of
15 99 percent dysprosium by mass.
16 ‘‘(J) EUROPIUM.—Europium which is—
17 ‘‘(i) converted to europium oxide which
18 is purified to a minimum purity of 99.9
19 percent europium oxide by mass, or
20 ‘‘(ii) purified to a minimum purity of
21 99 percent by mass.
22 ‘‘(K) FLUORSPAR.—Fluorspar which is—
23 ‘‘(i) converted to fluorspar which is pu-
24 rified to a minimum purity of 97 percent
25 calcium fluoride by mass, or
† HR 5376 EAS
441
1 ‘‘(ii) purified to a minimum purity of
2 99 percent fluorspar by mass.
3 ‘‘(L) GADOLINIUM.—Gadolinium which
4 is—
5 ‘‘(i) converted to gadolinium oxide
6 which is purified to a minimum purity of
7 99.9 percent gadolinium oxide by mass, or
8 ‘‘(ii) purified to a minimum purity of
9 99 percent gadolinium by mass.
10 ‘‘(M) GERMANIUM.—Germanium which
11 is—
12 ‘‘(i) converted to germanium tetra-
13 chloride, or
14 ‘‘(ii) purified to a minimum purity of
15 99.99 percent germanium by mass.
16 ‘‘(N) GRAPHITE.—Graphite which is puri-
17 fied to a minimum purity of 99.9 percent gra-
18 phitic carbon by mass.
19 ‘‘(O) INDIUM.—Indium which is—
20 ‘‘(i) converted to—
21 ‘‘(I) indium tin oxide, or
22 ‘‘(II) indium oxide which is puri-
23 fied to a minimum purity of 99.9 per-
24 cent indium oxide by mass, or
† HR 5376 EAS
442
1 ‘‘(ii) purified to a minimum purity of
2 99 percent indium by mass.
3 ‘‘(P) LITHIUM.—Lithium which is—
4 ‘‘(i) converted to lithium carbonate or
5 lithium hydroxide, or
6 ‘‘(ii) purified to a minimum purity of
7 99.9 percent lithium by mass.
8 ‘‘(Q) MANGANESE.—Manganese which is—
9 ‘‘(i) converted to manganese sulphate,
10 or
11 ‘‘(ii) purified to a minimum purity of
12 99.7 percent manganese by mass.
13 ‘‘(R) NEODYMIUM.—Neodymium which is—
14 ‘‘(i) converted to neodymium-praseo-
15 dymium oxide which is purified to a min-
16 imum purity of 99 percent neodymium-pra-
17 seodymium oxide by mass,
18 ‘‘(ii) converted to neodymium oxide
19 which is purified to a minimum purity of
20 99.5 percent neodymium oxide by mass
21 ‘‘(iii) purified to a minimum purity of
22 99.9 percent neodymium by mass.
23 ‘‘(S) NICKEL.—Nickel which is—
24 ‘‘(i) converted to nickel sulphate, or
† HR 5376 EAS
443
1 ‘‘(ii) purified to a minimum purity of
2 99 percent nickel by mass.
3 ‘‘(T) NIOBIUM.—Niobium which is—
4 ‘‘(i) converted to ferronibium, or
5 ‘‘(ii) purified to a minimum purity of
6 99 percent niobium by mass.
7 ‘‘(U) TELLURIUM.—Tellurium which is—
8 ‘‘(i) converted to cadmium telluride, or
9 ‘‘(ii) purified to a minimum purity of
10 99 percent tellurium by mass.
11 ‘‘(V) TIN.—Tin which is purified to low
12 alpha emitting tin which—
13 ‘‘(i) has a purity of greater than 99.99
14 percent by mass, and
15 ‘‘(ii) possesses an alpha emission rate
16 of not greater than 0.01 counts per hour per
17 centimeter square.
18 ‘‘(W) TUNGSTEN.—Tungsten which is con-
19 verted to ammonium paratungstate or
20 ferrotungsten.
21 ‘‘(X) VANADIUM.—Vanadium which is con-
22 verted to ferrovanadium or vanadium pentoxide.
23 ‘‘(Y) YTTRIUM.—Yttrium which is—
† HR 5376 EAS
444
1 ‘‘(i) converted to yttrium oxide which
2 is purified to a minimum purity of 99.999
3 percent yttrium oxide by mass, or
4 ‘‘(ii) purified to a minimum purity of
5 99.9 percent yttrium by mass.
6 ‘‘(Z) OTHER MINERALS.—Any of the fol-
7 lowing minerals, provided that such mineral is
8 purified to a minimum purity of 99 percent by
9 mass:
10 ‘‘(i) Arsenic.
11 ‘‘(ii) Bismuth.
12 ‘‘(iii) Erbium.
13 ‘‘(iv) Gallium.
14 ‘‘(v) Hafnium.
15 ‘‘(vi) Holmium.
16 ‘‘(vii) Iridium.
17 ‘‘(viii) Lanthanum.
18 ‘‘(ix) Lutetium.
19 ‘‘(x) Magnesium.
20 ‘‘(xi) Palladium.
21 ‘‘(xii) Platinum.
22 ‘‘(xiii) Praseodymium.
23 ‘‘(xiv) Rhodium.
24 ‘‘(xv) Rubidium.
25 ‘‘(xvi) Ruthenium.
† HR 5376 EAS
445
1 ‘‘(xvii) Samarium.
2 ‘‘(xviii) Scandium.
3 ‘‘(xix) Tantalum.
4 ‘‘(xx) Terbium.
5 ‘‘(xxi) Thulium.
6 ‘‘(xxii) Titanium.
7 ‘‘(xxiii) Ytterbium.
8 ‘‘(xxiv) Zinc.
9 ‘‘(xxv) Zirconium.
10 ‘‘(d) SPECIAL RULES.—In this section—
11 ‘‘(1) RELATED PERSONS.—Persons shall be treat-
12 ed as related to each other if such persons would be
13 treated as a single employer under the regulations
14 prescribed under section 52(b).
15 ‘‘(2) ONLY PRODUCTION IN THE UNITED STATES
16 TAKEN INTO ACCOUNT.—Sales shall be taken into ac-
17 count under this section only with respect to eligible
18 components the production of which is within—
19 ‘‘(A) the United States (within the meaning
20 of section 638(1)), or
21 ‘‘(B) a possession of the United States
22 (within the meaning of section 638(2)).
23 ‘‘(3) PASS-THRU IN THE CASE OF ESTATES AND
24 TRUSTS.—Under regulations prescribed by the Sec-
† HR 5376 EAS
446
1 retary, rules similar to the rules of subsection (d) of
2 section 52 shall apply.
3 ‘‘(4) SALE OF INTEGRATED COMPONENTS.—For
4 purposes of this section, a person shall be treated as
5 having sold an eligible component to an unrelated
6 person if such component is integrated, incorporated,
7 or assembled into another eligible component which is
8 sold to an unrelated person.’’.
9 (b) CONFORMING AMENDMENTS.—
10 (1) Section 38(b) of the Internal Revenue Code
11 of 1986, as amended by the preceding provisions of
12 this Act, is amended—
13 (A) in paragraph (36), by striking ‘‘plus’’
14 at the end,
15 (B) in paragraph (37), by striking the pe-
16 riod at the end and inserting ‘‘, plus’’, and
17 (C) by adding at the end the following new
18 paragraph:
19 ‘‘(38) the advanced manufacturing production
20 credit determined under section 45X(a).’’.
21 (2) The table of sections for subpart D of part
22 IV of subchapter A of chapter 1, as amended by the
23 preceding provisions of this Act, is amended by add-
24 ing at the end the following new item:
‘‘Sec. 45X. Advanced manufacturing production credit.’’.
† HR 5376 EAS
447
1 (c) EFFECTIVE DATE.—The amendments made by this
2 section shall apply to components produced and sold after
3 December 31, 2022.
4 PART 6—SUPERFUND
5 SEC. 13601. REINSTATEMENT OF SUPERFUND.
6 (a) HAZARDOUS SUBSTANCE SUPERFUND FINANCING
7 RATE.—
8 (1) EXTENSION.—Section 4611 is amended by
9 striking subsection (e).
10 (2) ADJUSTMENT FOR INFLATION.—
11 (A) Section 4611(c)(2)(A) is amended by
12 striking ‘‘9.7 cents’’ and inserting ‘‘16.4 cents’’.
13 (B) Section 4611(c) is amended by adding
14 at the end the following:
15 ‘‘(3) ADJUSTMENT FOR INFLATION.—
16 ‘‘(A) IN GENERAL.—In the case of a year
17 beginning after 2023, the amount in paragraph
18 (2)(A) shall be increased by an amount equal
19 to—
20 ‘‘(i) such amount, multiplied by
21 ‘‘(ii) the cost-of-living adjustment de-
22 termined under section 1(f)(3) for the cal-
23 endar year, determined by substituting ‘cal-
24 endar year 2022’ for ‘calendar year 2016’
25 in subparagraph (A)(ii) thereof.
† HR 5376 EAS
448
1 ‘‘(B) ROUNDING.—If any amount as ad-
2 justed under subparagraph (A) is not a multiple
3 of $0.01, such amount shall be rounded to the
4 next lowest multiple of $0.01.’’.
5 (b) AUTHORITY FOR ADVANCES.—Section
6 9507(d)(3)(B) is amended by striking ‘‘December 31, 1995’’
7 and inserting ‘‘December 31, 2032’’.
8 (c) EFFECTIVE DATE.—The amendments made by this
9 section shall take effect on January 1, 2023.
10 PART 7—INCENTIVES FOR CLEAN ELECTRICITY
11 AND CLEAN TRANSPORTATION
12 SEC. 13701. CLEAN ELECTRICITY PRODUCTION CREDIT.
13 (a) IN GENERAL.—Subpart D of part IV of subchapter
14 A of chapter 1, as amended by the preceding provisions of
15 this Act, is amended by adding at the end the following
16 new section:
17 ‘‘SEC. 45Y. CLEAN ELECTRICITY PRODUCTION CREDIT.
18 ‘‘(a) AMOUNT OF CREDIT.—
19 ‘‘(1) IN GENERAL.—For purposes of section 38,
20 the clean electricity production credit for any taxable
21 year is an amount equal to the product of—
22 ‘‘(A) the kilowatt hours of electricity—
23 ‘‘(i) produced by the taxpayer at a
24 qualified facility, and
† HR 5376 EAS
449
1 ‘‘(ii)(I) sold by the taxpayer to an un-
2 related person during the taxable year, or
3 ‘‘(II) in the case of a qualified facility
4 which is equipped with a metering device
5 which is owned and operated by an unre-
6 lated person, sold, consumed, or stored by
7 the taxpayer during the taxable year, multi-
8 plied by
9 ‘‘(B) the applicable amount with respect to
10 such qualified facility.
11 ‘‘(2) APPLICABLE AMOUNT.—
12 ‘‘(A) BASE AMOUNT.—Subject to subsection
13 (g)(7), in the case of any qualified facility which
14 is not described in clause (i) or (ii) of subpara-
15 graph (B) and does not satisfy the requirements
16 described in clause (iii) of such subparagraph,
17 the applicable amount shall be 0.3 cents.
18 ‘‘(B) ALTERNATIVE AMOUNT.—Subject to
19 subsection (g)(7), in the case of any qualified fa-
20 cility—
21 ‘‘(i) with a maximum net output of
22 less than 1 megawatt (as measured in alter-
23 nating current),
24 ‘‘(ii) the construction of which begins
25 prior to the date that is 60 days after the
† HR 5376 EAS
450
1 Secretary publishes guidance with respect to
2 the requirements of paragraphs (9) and (10)
3 of subsection (g), or
4 ‘‘(iii) which—
5 ‘‘(I) satisfies the requirements
6 under paragraph (9) of subsection (g),
7 and
8 ‘‘(II) with respect to the construc-
9 tion of such facility, satisfies the re-
10 quirements under paragraph (10) of
11 subsection (g),
12 the applicable amount shall be 1.5 cents.
13 ‘‘(b) QUALIFIED FACILITY.—
14 ‘‘(1) IN GENERAL.—
15 ‘‘(A) DEFINITION.—Subject to subpara-
16 graphs (B), (C), and (D), the term ‘qualified fa-
17 cility’ means a facility owned by the taxpayer—
18 ‘‘(i) which is used for the generation of
19 electricity,
20 ‘‘(ii) which is placed in service after
21 December 31, 2024, and
22 ‘‘(iii) for which the greenhouse gas
23 emissions rate (as determined under para-
24 graph (2)) is not greater than zero.
† HR 5376 EAS
451
1 ‘‘(B) 10-YEAR PRODUCTION CREDIT.—For
2 purposes of this section, a facility shall only be
3 treated as a qualified facility during the 10-year
4 period beginning on the date the facility was
5 originally placed in service.
6 ‘‘(C) EXPANSION OF FACILITY; INCRE-
7 MENTAL PRODUCTION.—The term ‘qualified fa-
8 cility’ shall include either of the following in
9 connection with a facility described in subpara-
10 graph (A) (without regard to clause (ii) of such
11 subparagraph) which was placed in service be-
12 fore January 1, 2025, but only to the extent of
13 the increased amount of electricity produced at
14 the facility by reason of the following:
15 ‘‘(i) A new unit which is placed in
16 service after December 31, 2024.
17 ‘‘(ii) Any additions of capacity which
18 are placed in service after December 31,
19 2024.
20 ‘‘(D) COORDINATION WITH OTHER CRED-
21 ITS.—The term ‘qualified facility’ shall not in-
22 clude any facility for which a credit determined
23 under section 45, 45J, 45Q, 45U, 48, 48A, or
24 48E is allowed under section 38 for the taxable
25 year or any prior taxable year.
† HR 5376 EAS
452
1 ‘‘(2) GREENHOUSE GAS EMISSIONS RATE.—
2 ‘‘(A) IN GENERAL.—For purposes of this
3 section, the term ‘greenhouse gas emissions rate’
4 means the amount of greenhouse gases emitted
5 into the atmosphere by a facility in the produc-
6 tion of electricity, expressed as grams of CO2e
7 per KWh.
8 ‘‘(B) FUEL COMBUSTION AND GASIFI-
9 CATION.—In the case of a facility which produces
10 electricity through combustion or gasification,
11 the greenhouse gas emissions rate for such facil-
12 ity shall be equal to the net rate of greenhouse
13 gases emitted into the atmosphere by such facil-
14 ity (taking into account lifecycle greenhouse gas
15 emissions, as described in section 211(o)(1)(H) of
16 the Clean Air Act (42 U.S.C. 7545(o)(1)(H))) in
17 the production of electricity, expressed as grams
18 of CO2e per KWh.
19 ‘‘(C) ESTABLISHMENT OF EMISSIONS RATES
20 FOR FACILITIES.—
21 ‘‘(i) PUBLISHING EMISSIONS RATES.—
22 The Secretary shall annually publish a
23 table that sets forth the greenhouse gas emis-
24 sions rates for types or categories of facili-
† HR 5376 EAS
453
1 ties, which a taxpayer shall use for purposes
2 of this section.
3 ‘‘(ii) PROVISIONAL EMISSIONS RATE.—
4 In the case of any facility for which an
5 emissions rate has not been established by
6 the Secretary, a taxpayer which owns such
7 facility may file a petition with the Sec-
8 retary for determination of the emissions
9 rate with respect to such facility.
10 ‘‘(D) CARBON CAPTURE AND SEQUESTRA-
11 TION EQUIPMENT.—For purposes of this sub-
12 section, the amount of greenhouse gases emitted
13 into the atmosphere by a facility in the produc-
14 tion of electricity shall not include any qualified
15 carbon dioxide that is captured by the taxpayer
16 and—
17 ‘‘(i) pursuant to any regulations estab-
18 lished under paragraph (2) of section
19 45Q(f), disposed of by the taxpayer in se-
20 cure geological storage, or
21 ‘‘(ii) utilized by the taxpayer in a
22 manner described in paragraph (5) of such
23 section.
24 ‘‘(c) INFLATION ADJUSTMENT.—
† HR 5376 EAS
454
1 ‘‘(1) IN GENERAL.—In the case of a calendar
2 year beginning after 2024, the 0.3 cent amount in
3 paragraph (2)(A) of subsection (a) and the 1.5 cent
4 amount in paragraph (2)(B) of such subsection shall
5 each be adjusted by multiplying such amount by the
6 inflation adjustment factor for the calendar year in
7 which the sale, consumption, or storage of the elec-
8 tricity occurs. If the 0.3 cent amount as increased
9 under this paragraph is not a multiple of 0.05 cent,
10 such amount shall be rounded to the nearest multiple
11 of 0.05 cent. If the 1.5 cent amount as increased
12 under this paragraph is not a multiple of 0.1 cent,
13 such amount shall be rounded to the nearest multiple
14 of 0.1 cent.
15 ‘‘(2) ANNUAL COMPUTATION.—The Secretary
16 shall, not later than April 1 of each calendar year,
17 determine and publish in the Federal Register the in-
18 flation adjustment factor for such calendar year in
19 accordance with this subsection.
20 ‘‘(3) INFLATION ADJUSTMENT FACTOR.—The
21 term ‘inflation adjustment factor’ means, with respect
22 to a calendar year, a fraction the numerator of which
23 is the GDP implicit price deflator for the preceding
24 calendar year and the denominator of which is the
25 GDP implicit price deflator for the calendar year
† HR 5376 EAS
455
1 1992. The term ‘GDP implicit price deflator’ means
2 the most recent revision of the implicit price deflator
3 for the gross domestic product as computed and pub-
4 lished by the Department of Commerce before March
5 15 of the calendar year.
6 ‘‘(d) CREDIT PHASE-OUT.—
7 ‘‘(1) IN GENERAL.—The amount of the clean elec-
8 tricity production credit under subsection (a) for any
9 qualified facility the construction of which begins
10 during a calendar year described in paragraph (2)
11 shall be equal to the product of—
12 ‘‘(A) the amount of the credit determined
13 under subsection (a) without regard to this sub-
14 section, multiplied by
15 ‘‘(B) the phase-out percentage under para-
16 graph (2).
17 ‘‘(2) PHASE-OUT PERCENTAGE.—The phase-out
18 percentage under this paragraph is equal to—
19 ‘‘(A) for a facility the construction of which
20 begins during the first calendar year following
21 the applicable year, 100 percent,
22 ‘‘(B) for a facility the construction of which
23 begins during the second calendar year following
24 the applicable year, 75 percent,
† HR 5376 EAS
456
1 ‘‘(C) for a facility the construction of which
2 begins during the third calendar year following
3 the applicable year, 50 percent, and
4 ‘‘(D) for a facility the construction of which
5 begins during any calendar year subsequent to
6 the calendar year described in subparagraph (C),
7 0 percent.
8 ‘‘(3) APPLICABLE YEAR.—For purposes of this
9 subsection, the term ‘applicable year’ means the later
10 of—
11 ‘‘(A) the calendar year in which the Sec-
12 retary determines that the annual greenhouse gas
13 emissions from the production of electricity in
14 the United States are equal to or less than 25
15 percent of the annual greenhouse gas emissions
16 from the production of electricity in the United
17 States for calendar year 2022, or
18 ‘‘(B) 2032.
19 ‘‘(e) DEFINITIONS.—For purposes of this section:
20 ‘‘(1) CO2e PER KWh.—The term ‘CO2e per KWh’
21 means, with respect to any greenhouse gas, the equiv-
22 alent carbon dioxide (as determined based on global
23 warming potential) per kilowatt hour of electricity
24 produced.
† HR 5376 EAS
457
1 ‘‘(2) GREENHOUSE GAS.—The term ‘greenhouse
2 gas’ has the same meaning given such term under sec-
3 tion 211(o)(1)(G) of the Clean Air Act (42 U.S.C.
4 7545(o)(1)(G)), as in effect on the date of the enact-
5 ment of this section.
6 ‘‘(3) QUALIFIED CARBON DIOXIDE.—The term
7 ‘qualified carbon dioxide’ means carbon dioxide cap-
8 tured from an industrial source which—
9 ‘‘(A) would otherwise be released into the
10 atmosphere as industrial emission of greenhouse
11 gas,
12 ‘‘(B) is measured at the source of capture
13 and verified at the point of disposal or utiliza-
14 tion, and
15 ‘‘(C) is captured and disposed or utilized
16 within the United States (within the meaning of
17 section 638(1)) or a possession of the United
18 States (within the meaning of section 638(2)).
19 ‘‘(f) GUIDANCE.—Not later than January 1, 2025, the
20 Secretary shall issue guidance regarding implementation of
21 this section, including calculation of greenhouse gas emis-
22 sion rates for qualified facilities and determination of clean
23 electricity production credits under this section.
24 ‘‘(g) SPECIAL RULES.—
† HR 5376 EAS
458
1 ‘‘(1) ONLY PRODUCTION IN THE UNITED STATES
2 TAKEN INTO ACCOUNT.—Consumption, sales, or stor-
3 age shall be taken into account under this section
4 only with respect to electricity the production of
5 which is within—
6 ‘‘(A) the United States (within the meaning
7 of section 638(1)), or
8 ‘‘(B) a possession of the United States
9 (within the meaning of section 638(2)).
10 ‘‘(2) COMBINED HEAT AND POWER SYSTEM PROP-
11 ERTY.—
12 ‘‘(A) IN GENERAL.—For purposes of sub-
13 section (a)—
14 ‘‘(i) the kilowatt hours of electricity
15 produced by a taxpayer at a qualified facil-
16 ity shall include any production in the form
17 of useful thermal energy by any combined
18 heat and power system property within
19 such facility, and
20 ‘‘(ii) the amount of greenhouse gases
21 emitted into the atmosphere by such facility
22 in the production of such useful thermal en-
23 ergy shall be included for purposes of deter-
24 mining the greenhouse gas emissions rate
25 for such facility.
† HR 5376 EAS
459
1 ‘‘(B) COMBINED HEAT AND POWER SYSTEM
2 PROPERTY.—For purposes of this paragraph, the
3 term ‘combined heat and power system property’
4 has the same meaning given such term by section
5 48(c)(3) (without regard to subparagraphs
6 (A)(iv), (B), and (D) thereof).
7 ‘‘(C) CONVERSION FROM BTU TO KWH.—
8 ‘‘(i) IN GENERAL.—For purposes of
9 subparagraph (A)(i), the amount of kilowatt
10 hours of electricity produced in the form of
11 useful thermal energy shall be equal to the
12 quotient of—
13 ‘‘(I) the total useful thermal en-
14 ergy produced by the combined heat
15 and power system property within the
16 qualified facility, divided by
17 ‘‘(II) the heat rate for such facil-
18 ity.
19 ‘‘(ii) HEAT RATE.—For purposes of
20 this subparagraph, the term ‘heat rate’
21 means the amount of energy used by the
22 qualified facility to generate 1 kilowatt hour
23 of electricity, expressed as British thermal
24 units per net kilowatt hour generated.
† HR 5376 EAS
460
1 ‘‘(3) PRODUCTION ATTRIBUTABLE TO THE TAX-
2 PAYER.—In the case of a qualified facility in which
3 more than 1 person has an ownership interest, except
4 to the extent provided in regulations prescribed by the
5 Secretary, production from the facility shall be allo-
6 cated among such persons in proportion to their re-
7 spective ownership interests in the gross sales from
8 such facility.
9 ‘‘(4) RELATED PERSONS.—Persons shall be treat-
10 ed as related to each other if such persons would be
11 treated as a single employer under the regulations
12 prescribed under section 52(b). In the case of a cor-
13 poration which is a member of an affiliated group of
14 corporations filing a consolidated return, such cor-
15 poration shall be treated as selling electricity to an
16 unrelated person if such electricity is sold to such a
17 person by another member of such group.
18 ‘‘(5) PASS-THRU IN THE CASE OF ESTATES AND
19 TRUSTS.—Under regulations prescribed by the Sec-
20 retary, rules similar to the rules of subsection (d) of
21 section 52 shall apply.
22 ‘‘(6) ALLOCATION OF CREDIT TO PATRONS OF AG-
23 RICULTURAL COOPERATIVE.—
24 ‘‘(A) ELECTION TO ALLOCATE.—
† HR 5376 EAS
461
1 ‘‘(i) IN GENERAL.—In the case of an
2 eligible cooperative organization, any por-
3 tion of the credit determined under sub-
4 section (a) for the taxable year may, at the
5 election of the organization, be apportioned
6 among patrons of the organization on the
7 basis of the amount of business done by the
8 patrons during the taxable year.
9 ‘‘(ii) FORM AND EFFECT OF ELEC-
10 TION.—An election under clause (i) for any
11 taxable year shall be made on a timely filed
12 return for such year. Such election, once
13 made, shall be irrevocable for such taxable
14 year. Such election shall not take effect un-
15 less the organization designates the appor-
16 tionment as such in a written notice mailed
17 to its patrons during the payment period
18 described in section 1382(d).
19 ‘‘(B) TREATMENT OF ORGANIZATIONS AND
20 PATRONS.—The amount of the credit apportioned
21 to any patrons under subparagraph (A)—
22 ‘‘(i) shall not be included in the
23 amount determined under subsection (a)
24 with respect to the organization for the tax-
25 able year, and
† HR 5376 EAS
462
1 ‘‘(ii) shall be included in the amount
2 determined under subsection (a) for the first
3 taxable year of each patron ending on or
4 after the last day of the payment period (as
5 defined in section 1382(d)) for the taxable
6 year of the organization or, if earlier, for
7 the taxable year of each patron ending on
8 or after the date on which the patron re-
9 ceives notice from the cooperative of the ap-
10 portionment.
11 ‘‘(C) SPECIAL RULES FOR DECREASE IN
12 CREDITS FOR TAXABLE YEAR.—If the amount of
13 the credit of a cooperative organization deter-
14 mined under subsection (a) for a taxable year is
15 less than the amount of such credit shown on the
16 return of the cooperative organization for such
17 year, an amount equal to the excess of—
18 ‘‘(i) such reduction, over
19 ‘‘(ii) the amount not apportioned to
20 such patrons under subparagraph (A) for
21 the taxable year,
22 shall be treated as an increase in tax imposed by
23 this chapter on the organization. Such increase
24 shall not be treated as tax imposed by this chap-
† HR 5376 EAS
463
1 ter for purposes of determining the amount of
2 any credit under this chapter.
3 ‘‘(D) ELIGIBLE COOPERATIVE DEFINED.—
4 For purposes of this section, the term ‘eligible co-
5 operative’ means a cooperative organization de-
6 scribed in section 1381(a) which is owned more
7 than 50 percent by agricultural producers or by
8 entities owned by agricultural producers. For
9 this purpose an entity owned by an agricultural
10 producer is one that is more than 50 percent
11 owned by agricultural producers.
12 ‘‘(7) INCREASE IN CREDIT IN ENERGY COMMU-
13 NITIES.—In the case of any qualified facility which
14 is located in an energy community (as defined in sec-
15 tion 45(b)(11)(B)), for purposes of determining the
16 amount of the credit under subsection (a) with respect
17 to any electricity produced by the taxpayer at such
18 facility during the taxable year, the applicable
19 amount under paragraph (2) of such subsection shall
20 be increased by an amount equal to 10 percent of the
21 amount otherwise in effect under such paragraph.
22 ‘‘(8) CREDIT REDUCED FOR TAX-EXEMPT
23 BONDS.—Rules similar to the rules of section 45(b)(3)
24 shall apply.
† HR 5376 EAS
464
1 ‘‘(9) WAGE REQUIREMENTS.—Rules similar to
2 the rules of section 45(b)(7) shall apply.
3 ‘‘(10) APPRENTICESHIP REQUIREMENTS.—Rules
4 similar to the rules of section 45(b)(8) shall apply.
5 ‘‘(11) DOMESTIC CONTENT BONUS CREDIT
6 AMOUNT.—
7 ‘‘(A) IN GENERAL.—In the case of any
8 qualified facility which satisfies the requirement
9 under subparagraph (B)(i), the amount of the
10 credit determined under subsection (a) shall be
11 increased by an amount equal to 10 percent of
12 the amount so determined (as determined with-
13 out application of paragraph (7)).
14 ‘‘(B) REQUIREMENT.—
15 ‘‘(i) IN GENERAL.—The requirement
16 described in this subclause is satisfied with
17 respect to any qualified facility if the tax-
18 payer certifies to the Secretary (at such
19 time, and in such form and manner, as the
20 Secretary may prescribe) that any steel,
21 iron, or manufactured product which is a
22 component of such facility (upon completion
23 of construction) was produced in the United
24 States (as determined under section 661 of
25 title 49, Code of Federal Regulations).
† HR 5376 EAS
465
1 ‘‘(ii) STEEL AND IRON.—In the case of
2 steel or iron, clause (i) shall be applied in
3 a manner consistent with section 661.5 of
4 title 49, Code of Federal Regulations.
5 ‘‘(iii) MANUFACTURED PRODUCT.—For
6 purposes of clause (i), the manufactured
7 products which are components of a quali-
8 fied facility upon completion of construction
9 shall be deemed to have been produced in
10 the United States if not less than the ad-
11 justed percentage (as determined under sub-
12 paragraph (C)) of the total costs of all such
13 manufactured products of such facility are
14 attributable to manufactured products (in-
15 cluding components) which are mined, pro-
16 duced, or manufactured in the United
17 States.
18 ‘‘(C) ADJUSTED PERCENTAGE.—
19 ‘‘(i) IN GENERAL.—Subject to sub-
20 clause (ii), for purposes of subparagraph
21 (B)(iii), the adjusted percentage shall be—
22 ‘‘(I) in the case of a facility the
23 construction of which begins before
24 January 1, 2025, 40 percent,
† HR 5376 EAS
466
1 ‘‘(II) in the case of a facility the
2 construction of which begins after De-
3 cember 31, 2024, and before January
4 1, 2026, 45 percent,
5 ‘‘(III) in the case of a facility the
6 construction of which begins after De-
7 cember 31, 2025, and before January
8 1, 2027, 50 percent, and
9 ‘‘(IV) in the case of a facility the
10 construction of which begins after De-
11 cember 31, 2026, 55 percent.
12 ‘‘(ii) OFFSHORE WIND FACILITY.—For
13 purposes of subparagraph (B)(iii), in the
14 case of a qualified facility which is an off-
15 shore wind facility, the adjusted percentage
16 shall be—
17 ‘‘(I) in the case of a facility the
18 construction of which begins before
19 January 1, 2025, 20 percent,
20 ‘‘(II) in the case of a facility the
21 construction of which begins after De-
22 cember 31, 2024, and before January
23 1, 2026, 27.5 percent,
24 ‘‘(III) in the case of a facility the
25 construction of which begins after De-
† HR 5376 EAS
467
1 cember 31, 2025, and before January
2 1, 2027, 35 percent,
3 ‘‘(IV) in the case of a facility the
4 construction of which begins after De-
5 cember 31, 2026, and before January
6 1, 2028, 45 percent, and
7 ‘‘(V) in the case of a facility the
8 construction of which begins after De-
9 cember 31, 2027, 55 percent.
10 ‘‘(12) PHASEOUT FOR ELECTIVE PAYMENT.—
11 ‘‘(A) IN GENERAL.—In the case of a tax-
12 payer making an election under section 6417
13 with respect to a credit under this section, the
14 amount of such credit shall be replaced with—
15 ‘‘(i) the value of such credit (deter-
16 mined without regard to this paragraph),
17 multiplied by
18 ‘‘(ii) the applicable percentage.
19 ‘‘(B) 100 PERCENT APPLICABLE PERCENT-
20 AGE FOR CERTAIN QUALIFIED FACILITIES.—In
21 the case of any qualified facility—
22 ‘‘(i) which satisfies the requirements
23 under paragraph (11)(B), or
† HR 5376 EAS
468
1 ‘‘(ii) with a maximum net output of
2 less than 1 megawatt (as measured in alter-
3 nating current),
4 the applicable percentage shall be 100 percent.
5 ‘‘(C) PHASED DOMESTIC CONTENT RE-
6 QUIREMENT.—Subject to subparagraph (D), in
7 the case of any qualified facility which is not de-
8 scribed in subparagraph (B), the applicable per-
9 centage shall be—
10 ‘‘(i) if construction of such facility
11 began before January 1, 2024, 100 percent,
12 ‘‘(ii) if construction of such facility
13 began in calendar year 2024, 90 percent,
14 ‘‘(iii) if construction of such facility
15 began in calendar year 2025, 85 percent,
16 and
17 ‘‘(iv) if construction of such facility
18 began after December 31, 2025, 0 percent.
19 ‘‘(D) EXCEPTION.—
20 ‘‘(i) IN GENERAL.—For purposes of
21 this paragraph, the Secretary shall provide
22 exceptions to the requirements under this
23 paragraph if—
24 ‘‘(I) the inclusion of steel, iron, or
25 manufactured products which are pro-
† HR 5376 EAS
469
1 duced in the United States increases
2 the overall costs of construction of
3 qualified facilities by more than 25
4 percent, or
5 ‘‘(II) relevant steel, iron, or man-
6 ufactured products are not produced in
7 the United States in sufficient and rea-
8 sonably available quantities or of a
9 satisfactory quality.
10 ‘‘(ii) APPLICABLE PERCENTAGE.—In
11 any case in which the Secretary provides an
12 exception pursuant to clause (i), the appli-
13 cable percentage shall be 100 percent.’’.
14 (b) CONFORMING AMENDMENTS.—
15 (1) Section 38(b), as amended by the preceding
16 provisions of this Act, is amended—
17 (A) in paragraph (37), by striking ‘‘plus’’
18 at the end,
19 (B) in paragraph (38), by striking the pe-
20 riod at the end and inserting ‘‘, plus’’, and
21 (C) by adding at the end the following new
22 paragraph:
23 ‘‘(39) the clean electricity production credit de-
24 termined under section 45Y(a).’’.
† HR 5376 EAS
470
1 (2) The table of sections for subpart D of part
2 IV of subchapter A of chapter 1, as amended by the
3 preceding provisions of this Act, is amended by add-
4 ing at the end the following new item:
‘‘Sec. 45Y. Clean electricity production credit.’’.
5 (c) EFFECTIVE DATE.—The amendments made by this
6 section shall apply to facilities placed in service after De-
7 cember 31, 2024.
8 SEC. 13702. CLEAN ELECTRICITY INVESTMENT CREDIT.
9 (a) IN GENERAL.—Subpart E of part IV of subchapter
10 A of chapter 1, as amended by section 107(a) of the CHIPS
11 Act of 2022, is amended by inserting after section 48D the
12 following new section:
13 ‘‘SEC. 48E. CLEAN ELECTRICITY INVESTMENT CREDIT.
14 ‘‘(a) INVESTMENT CREDIT FOR QUALIFIED PROP-
15 ERTY.—
16 ‘‘(1) IN GENERAL.—For purposes of section 46,
17 the clean electricity investment credit for any taxable
18 year is an amount equal to the applicable percentage
19 of the qualified investment for such taxable year with
20 respect to—
21 ‘‘(A) any qualified facility, and
22 ‘‘(B) any energy storage technology.
23 ‘‘(2) APPLICABLE PERCENTAGE.—
24 ‘‘(A) QUALIFIED FACILITIES.—Subject to
25 paragraph (3)—
† HR 5376 EAS
471
1 ‘‘(i) BASE RATE.—In the case of any
2 qualified facility which is not described in
3 subclause (I) or (II) of clause (ii) and does
4 not satisfy the requirements described in
5 subclause (III) of such clause, the applicable
6 percentage shall be 6 percent.
7 ‘‘(ii) ALTERNATIVE RATE.—In the case
8 of any qualified facility—
9 ‘‘(I) with a maximum net output
10 of less than 1 megawatt (as measured
11 in alternating current),
12 ‘‘(II) the construction of which be-
13 gins prior to the date that is 60 days
14 after the Secretary publishes guidance
15 with respect to the requirements of
16 paragraphs (3) and (4) of subsection
17 (d), or
18 ‘‘(III) which—
19 ‘‘(aa) satisfies the require-
20 ments of subsection (d)(3), and
21 ‘‘(bb) with respect to the con-
22 struction of such facility, satisfies
23 the requirements of subsection
24 (d)(4),
† HR 5376 EAS
472
1 the applicable percentage shall be 30 per-
2 cent.
3 ‘‘(B) ENERGY STORAGE TECHNOLOGY.—
4 Subject to paragraph (3)—
5 ‘‘(i) BASE RATE.—In the case of any
6 energy storage technology which is not de-
7 scribed in subclause (I) or (II) of clause (ii)
8 and does not satisfy the requirements de-
9 scribed in subclause (III) of such clause, the
10 applicable percentage shall be 6 percent.
11 ‘‘(ii) ALTERNATIVE RATE.—In the case
12 of any energy storage technology—
13 ‘‘(I) with a capacity of less than
14 1 megawatt,
15 ‘‘(II) the construction of which be-
16 gins prior to the date that is 60 days
17 after the Secretary publishes guidance
18 with respect to the requirements of
19 paragraphs (3) and (4) of subsection
20 (d), or
21 ‘‘(III) which—
22 ‘‘(aa) satisfies the require-
23 ments of subsection (d)(3), and
24 ‘‘(bb) with respect to the con-
25 struction of such property, satis-
† HR 5376 EAS
473
1 fies the requirements of subsection
2 (d)(4),
3 the applicable percentage shall be 30 per-
4 cent.
5 ‘‘(3) INCREASE IN CREDIT RATE IN CERTAIN
6 CASES.—
7 ‘‘(A) ENERGY COMMUNITIES.—
8 ‘‘(i) IN GENERAL.—In the case of any
9 qualified investment with respect to a quali-
10 fied facility or with respect to energy stor-
11 age technology which is placed in service
12 within an energy community (as defined in
13 section 45(b)(11)(B)), for purposes of apply-
14 ing paragraph (2) with respect to such
15 property or investment, the applicable per-
16 centage shall be increased by the applicable
17 credit rate increase.
18 ‘‘(ii) APPLICABLE CREDIT RATE IN-
19 CREASE.—For purposes of clause (i), the
20 applicable credit rate increase shall be an
21 amount equal to—
22 ‘‘(I) in the case of any qualified
23 investment with respect to a qualified
24 facility described in paragraph
25 (2)(A)(i) or with respect to energy stor-
† HR 5376 EAS
474
1 age technology described in paragraph
2 (2)(B)(i), 2 percentage points, and
3 ‘‘(II) in the case of any qualified
4 investment with respect to a qualified
5 facility described in paragraph
6 (2)(A)(ii) or with respect to energy
7 storage technology described in para-
8 graph (2)(B)(ii), 10 percentage points.
9 ‘‘(B) DOMESTIC CONTENT.—Rules similar
10 to the rules of section 48(a)(12) shall apply.
11 ‘‘(b) QUALIFIED INVESTMENT WITH RESPECT TO A
12 QUALIFIED FACILITY.—
13 ‘‘(1) IN GENERAL.—For purposes of subsection
14 (a), the qualified investment with respect to any
15 qualified facility for any taxable year is the sum of—
16 ‘‘(A) the basis of any qualified property
17 placed in service by the taxpayer during such
18 taxable year which is part of a qualified facility,
19 plus
20 ‘‘(B) the amount of any expenditures which
21 are—
22 ‘‘(i) paid or incurred by the taxpayer
23 for qualified interconnection property—
24 ‘‘(I) in connection with a quali-
25 fied facility which has a maximum net
† HR 5376 EAS
475
1 output of not greater than 5 megawatts
2 (as measured in alternating current),
3 and
4 ‘‘(II) placed in service during the
5 taxable year of the taxpayer, and
6 ‘‘(ii) properly chargeable to capital ac-
7 count of the taxpayer.
8 ‘‘(2) QUALIFIED PROPERTY.—For purposes of
9 this section, the term ‘qualified property’ means prop-
10 erty—
11 ‘‘(A) which is—
12 ‘‘(i) tangible personal property, or
13 ‘‘(ii) other tangible property (not in-
14 cluding a building or its structural compo-
15 nents), but only if such property is used as
16 an integral part of the qualified facility,
17 ‘‘(B) with respect to which depreciation (or
18 amortization in lieu of depreciation) is allow-
19 able, and
20 ‘‘(C)(i) the construction, reconstruction, or
21 erection of which is completed by the taxpayer,
22 or
23 ‘‘(ii) which is acquired by the taxpayer if
24 the original use of such property commences with
25 the taxpayer.
† HR 5376 EAS
476
1 ‘‘(3) QUALIFIED FACILITY.—
2 ‘‘(A) IN GENERAL.—For purposes of this
3 section, the term ‘qualified facility’ means a fa-
4 cility—
5 ‘‘(i) which is used for the generation of
6 electricity,
7 ‘‘(ii) which is placed in service after
8 December 31, 2024, and
9 ‘‘(iii) for which the anticipated green-
10 house gas emissions rate (as determined
11 under subparagraph (B)(ii)) is not greater
12 than zero.
13 ‘‘(B) ADDITIONAL RULES.—
14 ‘‘(i) EXPANSION OF FACILITY; INCRE-
15 MENTAL PRODUCTION.—Rules similar to the
16 rules of section 45Y(b)(1)(C) shall apply for
17 purposes of this paragraph.
18 ‘‘(ii) GREENHOUSE GAS EMISSIONS
19 RATE.—Rules similar to the rules of section
20 45Y(b)(2) shall apply for purposes of this
21 paragraph.
22 ‘‘(C) EXCLUSION.—The term ‘qualified fa-
23 cility’ shall not include any facility for which—
24 ‘‘(i) a renewable electricity production
25 credit determined under section 45,
† HR 5376 EAS
477
1 ‘‘(ii) an advanced nuclear power facil-
2 ity production credit determined under sec-
3 tion 45J,
4 ‘‘(iii) a carbon oxide sequestration
5 credit determined under section 45Q,
6 ‘‘(iv) a zero-emission nuclear power
7 production credit determined under section
8 45U,
9 ‘‘(v) a clean electricity production
10 credit determined under section 45Y,
11 ‘‘(vi) an energy credit determined
12 under section 48, or
13 ‘‘(vii) a qualifying advanced coal
14 project credit under section 48A,
15 is allowed under section 38 for the taxable year
16 or any prior taxable year.
17 ‘‘(4) QUALIFIED INTERCONNECTION PROPERTY.—
18 For purposes of this paragraph, the term ‘qualified
19 interconnection property’ has the meaning given such
20 term in section 48(a)(8)(B).
21 ‘‘(5) COORDINATION WITH REHABILITATION
22 CREDIT.—The qualified investment with respect to
23 any qualified facility for any taxable year shall not
24 include that portion of the basis of any property
† HR 5376 EAS
478
1 which is attributable to qualified rehabilitation ex-
2 penditures (as defined in section 47(c)(2)).
3 ‘‘(6) DEFINITIONS.—For purposes of this sub-
4 section, the terms ‘CO2e per KWh’ and ‘greenhouse
5 gas emissions rate’ have the same meaning given such
6 terms under section 45Y.
7 ‘‘(c) QUALIFIED INVESTMENT WITH RESPECT TO EN-
8 ERGY STORAGE TECHNOLOGY.—
9 ‘‘(1) QUALIFIED INVESTMENT.—For purposes of
10 subsection (a), the qualified investment with respect
11 to energy storage technology for any taxable year is
12 the basis of any energy storage technology placed in
13 service by the taxpayer during such taxable year.
14 ‘‘(2) ENERGY STORAGE TECHNOLOGY.—For pur-
15 poses of this section, the term ‘energy storage tech-
16 nology’ has the meaning given such term in section
17 48(c)(6) (except that subparagraph (D) of such sec-
18 tion shall not apply).
19 ‘‘(d) SPECIAL RULES.—
20 ‘‘(1) CERTAIN PROGRESS EXPENDITURE RULES
21 MADE APPLICABLE.—Rules similar to the rules of sub-
22 sections (c)(4) and (d) of section 46 (as in effect on
23 the day before the date of the enactment of the Rev-
24 enue Reconciliation Act of 1990) shall apply for pur-
25 poses of subsection (a).
† HR 5376 EAS
479
1 ‘‘(2) SPECIAL RULE FOR PROPERTY FINANCED BY
2 SUBSIDIZED ENERGY FINANCING OR PRIVATE ACTIVITY
3 BONDS.—Rules similar to the rules of section 45(b)(3)
4 shall apply.
5 ‘‘(3) PREVAILING WAGE REQUIREMENTS.—Rules
6 similar to the rules of section 48(a)(10) shall apply.
7 ‘‘(4) APPRENTICESHIP REQUIREMENTS.—Rules
8 similar to the rules of section 45(b)(8) shall apply.
9 ‘‘(5) DOMESTIC CONTENT REQUIREMENT FOR
10 ELECTIVE PAYMENT.—In the case of a taxpayer mak-
11 ing an election under section 6417 with respect to a
12 credit under this section, rules similar to the rules of
13 section 45Y(g)(12) shall apply.
14 ‘‘(e) CREDIT PHASE-OUT.—
15 ‘‘(1) IN GENERAL.—The amount of the clean elec-
16 tricity investment credit under subsection (a) for any
17 qualified investment with respect to any qualified fa-
18 cility or energy storage technology the construction of
19 which begins during a calendar year described in
20 paragraph (2) shall be equal to the product of—
21 ‘‘(A) the amount of the credit determined
22 under subsection (a) without regard to this sub-
23 section, multiplied by
24 ‘‘(B) the phase-out percentage under para-
25 graph (2).
† HR 5376 EAS
480
1 ‘‘(2) PHASE-OUT PERCENTAGE.—The phase-out
2 percentage under this paragraph is equal to—
3 ‘‘(A) for any qualified investment with re-
4 spect to any qualified facility or energy storage
5 technology the construction of which begins dur-
6 ing the first calendar year following the applica-
7 ble year, 100 percent,
8 ‘‘(B) for any qualified investment with re-
9 spect to any qualified facility or energy storage
10 technology the construction of which begins dur-
11 ing the second calendar year following the appli-
12 cable year, 75 percent,
13 ‘‘(C) for any qualified investment with re-
14 spect to any qualified facility or energy storage
15 technology the construction of which begins dur-
16 ing the third calendar year following the appli-
17 cable year, 50 percent, and
18 ‘‘(D) for any qualified investment with re-
19 spect to any qualified facility or energy storage
20 technology the construction of which begins dur-
21 ing any calendar year subsequent to the calendar
22 year described in subparagraph (C), 0 percent.
23 ‘‘(3) APPLICABLE YEAR.—For purposes of this
24 subsection, the term ‘applicable year’ has the same
25 meaning given such term in section 45Y(d)(3).
† HR 5376 EAS
481
1 ‘‘(f) GREENHOUSE GAS.—In this section, the term
2 ‘greenhouse gas’ has the same meaning given such term
3 under section 45Y(e)(2).
4 ‘‘(g) RECAPTURE OF CREDIT.—For purposes of section
5 50, if the Secretary determines that the greenhouse gas emis-
6 sions rate for a qualified facility is greater than 10 grams
7 of CO2e per KWh, any property for which a credit was al-
8 lowed under this section with respect to such facility shall
9 cease to be investment credit property in the taxable year
10 in which the determination is made.
11 ‘‘(h) SPECIAL RULES FOR CERTAIN FACILITIES
12 PLACED IN SERVICE IN CONNECTION WITH LOW-INCOME
13 COMMUNITIES.—
14 ‘‘(1) IN GENERAL.—In the case of any applicable
15 facility with respect to which the Secretary makes an
16 allocation of environmental justice capacity limita-
17 tion under paragraph (4)—
18 ‘‘(A) the applicable percentage otherwise de-
19 termined under subsection (a)(2) with respect to
20 any eligible property which is part of such facil-
21 ity shall be increased by—
22 ‘‘(i) in the case of a facility described
23 in subclause (I) of paragraph (2)(A)(iii)
24 and not described in subclause (II) of such
25 paragraph, 10 percentage points, and
† HR 5376 EAS
482
1 ‘‘(ii) in the case of a facility described
2 in subclause (II) of paragraph (2)(A)(iii),
3 20 percentage points, and
4 ‘‘(B) the increase in the credit determined
5 under subsection (a) by reason of this subsection
6 for any taxable year with respect to all property
7 which is part of such facility shall not exceed the
8 amount which bears the same ratio to the
9 amount of such increase (determined without re-
10 gard to this subparagraph) as—
11 ‘‘(i) the environmental justice capacity
12 limitation allocated to such facility, bears
13 to
14 ‘‘(ii) the total megawatt nameplate ca-
15 pacity of such facility, as measured in di-
16 rect current.
17 ‘‘(2) APPLICABLE FACILITY.—For purposes of
18 this subsection—
19 ‘‘(A) IN GENERAL.—The term ‘applicable
20 facility’ means any qualified facility—
21 ‘‘(i) which is not described in section
22 45Y(b)(2)(B),
23 ‘‘(ii) which has a maximum net output
24 of less than 5 megawatts (as measured in
25 alternating current), and
† HR 5376 EAS
483
1 ‘‘(iii) which—
2 ‘‘(I) is located in a low-income
3 community (as defined in section
4 45D(e)) or on Indian land (as defined
5 in section 2601(2) of the Energy Policy
6 Act of 1992 (25 U.S.C. 3501(2))), or
7 ‘‘(II) is part of a qualified low-in-
8 come residential building project or a
9 qualified low-income economic benefit
10 project.
11 ‘‘(B) QUALIFIED LOW-INCOME RESIDENTIAL
12 BUILDING PROJECT.—A facility shall be treated
13 as part of a qualified low-income residential
14 building project if—
15 ‘‘(i) such facility is installed on a resi-
16 dential rental building which participates
17 in a covered housing program (as defined in
18 section 41411(a) of the Violence Against
19 Women Act of 1994 (34 U.S.C.
20 12491(a)(3)), a housing assistance program
21 administered by the Department of Agri-
22 culture under title V of the Housing Act of
23 1949, a housing program administered by a
24 tribally designated housing entity (as de-
25 fined in section 4(22) of the Native Amer-
† HR 5376 EAS
484
1 ican Housing Assistance and Self-Deter-
2 mination Act of 1996 (25 U.S.C. 4103(22)))
3 or such other affordable housing programs
4 as the Secretary may provide, and
5 ‘‘(ii) the financial benefits of the elec-
6 tricity produced by such facility are allo-
7 cated equitably among the occupants of the
8 dwelling units of such building.
9 ‘‘(C) QUALIFIED LOW-INCOME ECONOMIC
10 BENEFIT PROJECT.—A facility shall be treated
11 as part of a qualified low-income economic ben-
12 efit project if at least 50 percent of the financial
13 benefits of the electricity produced by such facil-
14 ity are provided to households with income of—
15 ‘‘(i) less than 200 percent of the pov-
16 erty line (as defined in section
17 36B(d)(3)(A)) applicable to a family of the
18 size involved, or
19 ‘‘(ii) less than 80 percent of area me-
20 dian gross income (as determined under sec-
21 tion 142(d)(2)(B)).
22 ‘‘(D) FINANCIAL BENEFIT.—For purposes of
23 subparagraphs (B) and (C), electricity acquired
24 at a below-market rate shall not fail to be taken
25 into account as a financial benefit.
† HR 5376 EAS
485
1 ‘‘(3) ELIGIBLE PROPERTY.—For purposes of this
2 subsection, the term ‘eligible property’ means a quali-
3 fied investment with respect to any applicable facil-
4 ity.
5 ‘‘(4) ALLOCATIONS.—
6 ‘‘(A) IN GENERAL.—Not later than January
7 1, 2025, the Secretary shall establish a program
8 to allocate amounts of environmental justice ca-
9 pacity limitation to applicable facilities. In es-
10 tablishing such program and to carry out the
11 purposes of this subsection, the Secretary shall
12 provide procedures to allow for an efficient allo-
13 cation process, including, when determined ap-
14 propriate, consideration of multiple projects in a
15 single application if such projects will be placed
16 in service by a single taxpayer.
17 ‘‘(B) LIMITATION.—The amount of environ-
18 mental justice capacity limitation allocated by
19 the Secretary under subparagraph (A) during
20 any calendar year shall not exceed the annual
21 capacity limitation with respect to such year.
22 ‘‘(C) ANNUAL CAPACITY LIMITATION.—For
23 purposes of this paragraph, the term ‘annual ca-
24 pacity limitation’ means 1.8 gigawatts of direct
25 current capacity for each calendar year during
† HR 5376 EAS
486
1 the period beginning on January 1, 2025, and
2 ending on December 31 of the applicable year (as
3 defined in section 45Y(d)(3)), and zero there-
4 after.
5 ‘‘(D) CARRYOVER OF UNUSED LIMITA-
6 TION.—
7 ‘‘(i) IN GENERAL.—If the annual ca-
8 pacity limitation for any calendar year ex-
9 ceeds the aggregate amount allocated for
10 such year under this paragraph, such limi-
11 tation for the succeeding calendar year shall
12 be increased by the amount of such excess.
13 No amount may be carried under the pre-
14 ceding sentence to any calendar year after
15 the third calendar year following the appli-
16 cable year (as defined in section 45Y(d)(3)).
17 ‘‘(ii) CARRYOVER FROM SECTION 48
18 FOR CALENDAR YEAR 2025.—If the annual
19 capacity limitation for calendar year 2024
20 under section 48(e)(4)(D) exceeds the aggre-
21 gate amount allocated for such year under
22 such section, such excess amount may be
23 carried over and applied to the annual ca-
24 pacity limitation under this subsection for
25 calendar year 2025. The annual capacity
† HR 5376 EAS
487
1 limitation for calendar year 2025 shall be
2 increased by the amount of such excess.
3 ‘‘(E) PLACED IN SERVICE DEADLINE.—
4 ‘‘(i) IN GENERAL.—Paragraph (1)
5 shall not apply with respect to any property
6 which is placed in service after the date that
7 is 4 years after the date of the allocation
8 with respect to the facility of which such
9 property is a part.
10 ‘‘(ii) APPLICATION OF CARRYOVER.—
11 Any amount of environmental justice capac-
12 ity limitation which expires under clause
13 (i) during any calendar year shall be taken
14 into account as an excess described in sub-
15 paragraph (D)(i) (or as an increase in such
16 excess) for such calendar year, subject to the
17 limitation imposed by the last sentence of
18 such subparagraph.
19 ‘‘(5) RECAPTURE.—The Secretary shall, by regu-
20 lations or other guidance, provide for recapturing the
21 benefit of any increase in the credit allowed under
22 subsection (a) by reason of this subsection with re-
23 spect to any property which ceases to be property eli-
24 gible for such increase (but which does not cease to be
25 investment credit property within the meaning of sec-
† HR 5376 EAS
488
1 tion 50(a)). The period and percentage of such recap-
2 ture shall be determined under rules similar to the
3 rules of section 50(a). To the extent provided by the
4 Secretary, such recapture may not apply with respect
5 to any property if, within 12 months after the date
6 the taxpayer becomes aware (or reasonably should
7 have become aware) of such property ceasing to be
8 property eligible for such increase, the eligibility of
9 such property for such increase is restored. The pre-
10 ceding sentence shall not apply more than once with
11 respect to any facility.
12 ‘‘(i) GUIDANCE.—Not later than January 1, 2025, the
13 Secretary shall issue guidance regarding implementation of
14 this section.’’.
15 (b) CONFORMING AMENDMENTS.—
16 (1) Section 46, as amended by section 107(d) of
17 the CHIPS Act of 2022, is amended—
18 (A) in paragraph (5), by striking ‘‘and’’ at
19 the end,
20 (B) in paragraph (6), by striking the period
21 at the end and inserting ‘‘, and’’, and
22 (C) by adding at the end the following:
23 ‘‘(7) the clean electricity investment credit.’’.
24 (2) Section 49(a)(1)(C), as amended by section
25 107(d) of the CHIPS Act of 2022, is amended—
† HR 5376 EAS
489
1 (A) by striking ‘‘and’’ at the end of clause
2 (v),
3 (B) by striking the period at the end of
4 clause (vi) and inserting a comma, and
5 (C) by adding at the end the following new
6 clauses:
7 ‘‘(vii) the basis of any qualified prop-
8 erty which is part of a qualified facility
9 under section 48E, and
10 ‘‘(viii) the basis of any energy storage
11 technology under section 48E.’’.
12 (3) Section 50(a)(2)(E), as amended by section
13 107(d) of the CHIPS Act of 2022, is amended by
14 striking ‘‘or 48D(b)(5)’’ and inserting ‘‘48D(b)(5), or
15 48E(e)’’.
16 (4) Section 50(c)(3) is amended by inserting ‘‘or
17 clean electricity investment credit’’ after ‘‘In the case
18 of any energy credit’’.
19 (5) The table of sections for subpart E of part IV
20 of subchapter A of chapter 1, as amended by section
21 107(d) of the CHIPS Act of 2022, is amended by in-
22 serting after the item relating to section 48D the fol-
23 lowing new item:
‘‘48E. Clean electricity investment credit.’’.
† HR 5376 EAS
490
1 (c) EFFECTIVE DATE.—The amendments made by this
2 section shall apply to property placed in service after De-
3 cember 31, 2024.
4 SEC. 13703. COST RECOVERY FOR QUALIFIED FACILITIES,
5 QUALIFIED PROPERTY, AND ENERGY STOR-
6 AGE TECHNOLOGY.
7 (a) IN GENERAL.—Section 168(e)(3)(B) is amended—
8 (1) in clause (vi)(III), by striking ‘‘and’’ at the
9 end,
10 (2) in clause (vii), by striking the period at the
11 end and inserting ‘‘, and’’, and
12 (3) by inserting after clause (vii) the following:
13 ‘‘(viii) any qualified facility (as de-
14 fined in section 45Y(b)(1)(A)), any quali-
15 fied property (as defined in subsection
16 (b)(2) of section 48E) which is a qualified
17 investment (as defined in subsection (b)(1)
18 of such section), or any energy storage tech-
19 nology (as defined in subsection (c)(2) of
20 such section).’’.
21 (b) EFFECTIVE DATE.—The amendments made by this
22 section shall apply to facilities and property placed in serv-
23 ice after December 31, 2024.
† HR 5376 EAS
491
1 SEC. 13704. CLEAN FUEL PRODUCTION CREDIT.
2 (a) IN GENERAL.—Subpart D of part IV of subchapter
3 A of chapter 1, as amended by the preceding provisions of
4 this Act, is amended by adding at the end the following
5 new section:
6 ‘‘SEC. 45Z. CLEAN FUEL PRODUCTION CREDIT.
7 ‘‘(a) AMOUNT OF CREDIT.—
8 ‘‘(1) IN GENERAL.—For purposes of section 38,
9 the clean fuel production credit for any taxable year
10 is an amount equal to the product of—
11 ‘‘(A) the applicable amount per gallon (or
12 gallon equivalent) with respect to any transpor-
13 tation fuel which is—
14 ‘‘(i) produced by the taxpayer at a
15 qualified facility, and
16 ‘‘(ii) sold by the taxpayer in a manner
17 described in paragraph (4) during the tax-
18 able year, and
19 ‘‘(B) the emissions factor for such fuel (as
20 determined under subsection (b)).
21 ‘‘(2) APPLICABLE AMOUNT.—
22 ‘‘(A) BASE AMOUNT.—In the case of any
23 transportation fuel produced at a qualified facil-
24 ity which does not satisfy the requirements de-
25 scribed in subparagraph (B), the applicable
26 amount shall be 20 cents.
† HR 5376 EAS
492
1 ‘‘(B) ALTERNATIVE AMOUNT.—In the case of
2 any transportation fuel produced at a qualified
3 facility which satisfies the requirements under
4 paragraphs (6) and (7) of subsection (f), the ap-
5 plicable amount shall be $1.00.
6 ‘‘(3) SPECIAL RATE FOR SUSTAINABLE AVIATION
7 FUEL.—
8 ‘‘(A) IN GENERAL.—In the case of a trans-
9 portation fuel which is sustainable aviation fuel,
10 paragraph (2) shall be applied—
11 ‘‘(i) in the case of fuel produced at a
12 qualified facility described in paragraph
13 (2)(A), by substituting ‘35 cents’ for ‘20
14 cents’, and
15 ‘‘(ii) in the case of fuel produced at a
16 qualified facility described in paragraph
17 (2)(B), by substituting ‘$1.75’ for ‘$1.00’.
18 ‘‘(B) SUSTAINABLE AVIATION FUEL.—For
19 purposes of this subparagraph (A), the term ‘sus-
20 tainable aviation fuel’ means liquid fuel, the
21 portion of which is not kerosene, which is sold
22 for use in an aircraft and which—
23 ‘‘(i) meets the requirements of—
24 ‘‘(I) ASTM International Stand-
25 ard D7566, or
† HR 5376 EAS
493
1 ‘‘(II) the Fischer Tropsch provi-
2 sions of ASTM International Standard
3 D1655, Annex A1, and
4 ‘‘(ii) is not derived from palm fatty
5 acid distillates or petroleum.
6 ‘‘(4) SALE.—For purposes of paragraph (1), the
7 transportation fuel is sold in a manner described in
8 this paragraph if such fuel is sold by the taxpayer to
9 an unrelated person—
10 ‘‘(A) for use by such person in the produc-
11 tion of a fuel mixture,
12 ‘‘(B) for use by such person in a trade or
13 business, or
14 ‘‘(C) who sells such fuel at retail to another
15 person and places such fuel in the fuel tank of
16 such other person.
17 ‘‘(5) ROUNDING.—If any amount determined
18 under paragraph (1) is not a multiple of 1 cent, such
19 amount shall be rounded to the nearest cent.
20 ‘‘(b) EMISSIONS FACTORS.—
21 ‘‘(1) EMISSIONS FACTOR.—
22 ‘‘(A) CALCULATION.—
23 ‘‘(i) IN GENERAL.—The emissions fac-
24 tor of a transportation fuel shall be an
25 amount equal to the quotient of—
† HR 5376 EAS
494
1 ‘‘(I) an amount equal to—
2 ‘‘(aa) 50 kilograms of CO2e
3 per mmBTU, minus
4 ‘‘(bb) the emissions rate for
5 such fuel, divided by
6 ‘‘(II) 50 kilograms of CO2e per
7 mmBTU.
8 ‘‘(B) ESTABLISHMENT OF EMISSIONS
9 RATE.—
10 ‘‘(i) IN GENERAL.—Subject to clauses
11 (ii) and (iii), the Secretary shall annually
12 publish a table which sets forth the emis-
13 sions rate for similar types and categories
14 of transportation fuels based on the amount
15 of lifecycle greenhouse gas emissions (as de-
16 scribed in section 211(o)(1)(H) of the Clean
17 Air Act (42 U.S.C. 7545(o)(1)(H)), as in ef-
18 fect on the date of the enactment of this sec-
19 tion) for such fuels, expressed as kilograms
20 of CO2e per mmBTU, which a taxpayer
21 shall use for purposes of this section.
22 ‘‘(ii) NON-AVIATION FUEL.—In the case
23 of any transportation fuel which is not a
24 sustainable aviation fuel, the lifecycle green-
25 house gas emissions of such fuel shall be
† HR 5376 EAS
495
1 based on the most recent determinations
2 under the Greenhouse gases, Regulated
3 Emissions, and Energy use in Transpor-
4 tation model developed by Argonne National
5 Laboratory, or a successor model (as deter-
6 mined by the Secretary).
7 ‘‘(iii) AVIATION FUEL.—In the case of
8 any transportation fuel which is a sustain-
9 able aviation fuel, the lifecycle greenhouse
10 gas emissions of such fuel shall be deter-
11 mined in accordance with—
12 ‘‘(I) the most recent Carbon Off-
13 setting and Reduction Scheme for
14 International Aviation which has been
15 adopted by the International Civil
16 Aviation Organization with the agree-
17 ment of the United States, or
18 ‘‘(II) any similar methodology
19 which satisfies the criteria under sec-
20 tion 211(o)(1)(H) of the Clean Air Act
21 (42 U.S.C. 7545(o)(1)(H)), as in effect
22 on the date of enactment of this sec-
23 tion.
24 ‘‘(C) ROUNDING OF EMISSIONS RATE.—
† HR 5376 EAS
496
1 ‘‘(i) IN GENERAL.—Subject to clause
2 (ii), the Secretary may round the emissions
3 rates under subparagraph (B) to the nearest
4 multiple of 5 kilograms of CO2e per
5 mmBTU.
6 ‘‘(ii) EXCEPTION.—In the case of an
7 emissions rate that is between 2.5 kilograms
8 of CO2e per mmBTU and -2.5 kilograms of
9 CO2e per mmBTU, the Secretary may
10 round such rate to zero.
11 ‘‘(D) PROVISIONAL EMISSIONS RATE.—In
12 the case of any transportation fuel for which an
13 emissions rate has not been established under
14 subparagraph (B), a taxpayer producing such
15 fuel may file a petition with the Secretary for
16 determination of the emissions rate with respect
17 to such fuel.
18 ‘‘(2) ROUNDING.—If any amount determined
19 under paragraph (1)(A) is not a multiple of 0.1, such
20 amount shall be rounded to the nearest multiple of
21 0.1.
22 ‘‘(c) INFLATION ADJUSTMENT.—
23 ‘‘(1) IN GENERAL.—In the case of calendar years
24 beginning after 2024, the 20 cent amount in sub-
25 section (a)(2)(A), the $1.00 amount in subsection
† HR 5376 EAS
497
1 (a)(2)(B), the 35 cent amount in subsection
2 (a)(3)(A)(i), and the $1.75 amount in subsection
3 (a)(3)(A)(ii) shall each be adjusted by multiplying
4 such amount by the inflation adjustment factor for
5 the calendar year in which the sale of the transpor-
6 tation fuel occurs. If any amount as increased under
7 the preceding sentence is not a multiple of 1 cent,
8 such amount shall be rounded to the nearest multiple
9 of 1 cent.
10 ‘‘(2) INFLATION ADJUSTMENT FACTOR.—For
11 purposes of paragraph (1), the inflation adjustment
12 factor shall be the inflation adjustment factor deter-
13 mined and published by the Secretary pursuant to
14 section 45Y(c), determined by substituting ‘calendar
15 year 2022’ for ‘calendar year 1992’ in paragraph (3)
16 thereof.
17 ‘‘(d) DEFINITIONS.—In this section:
18 ‘‘(1) mmBTU.—The term ‘mmBTU’ means
19 1,000,000 British thermal units.
20 ‘‘(2) CO2e.—The term ‘CO2e’ means, with re-
21 spect to any greenhouse gas, the equivalent carbon di-
22 oxide (as determined based on relative global warm-
23 ing potential).
24 ‘‘(3) GREENHOUSE GAS.—The term ‘greenhouse
25 gas’ has the same meaning given that term under sec-
† HR 5376 EAS
498
1 tion 211(o)(1)(G) of the Clean Air Act (42 U.S.C.
2 7545(o)(1)(G)), as in effect on the date of the enact-
3 ment of this section.
4 ‘‘(4) QUALIFIED FACILITY.—The term ‘qualified
5 facility’—
6 ‘‘(A) means a facility used for the produc-
7 tion of transportation fuels, and
8 ‘‘(B) does not include any facility for which
9 one of the following credits is allowed under sec-
10 tion 38 for the taxable year:
11 ‘‘(i) The credit for production of clean
12 hydrogen under section 45V.
13 ‘‘(ii) The credit determined under sec-
14 tion 46 to the extent that such credit is at-
15 tributable to the energy credit determined
16 under section 48 with respect to any speci-
17 fied clean hydrogen production facility for
18 which an election is made under subsection
19 (a)(15) of such section.
20 ‘‘(iii) The credit for carbon oxide se-
21 questration under section 45Q.
22 ‘‘(5) TRANSPORTATION FUEL.—
23 ‘‘(A) IN GENERAL.—The term ‘transpor-
24 tation fuel’ means a fuel which—
† HR 5376 EAS
499
1 ‘‘(i) is suitable for use as a fuel in a
2 highway vehicle or aircraft,
3 ‘‘(ii) has an emissions rate which is
4 not greater than 50 kilograms of CO2e per
5 mmBTU, and
6 ‘‘(iii) is not derived from coprocessing
7 an applicable material (or materials de-
8 rived from an applicable material) with a
9 feedstock which is not biomass.
10 ‘‘(B) DEFINITIONS.—In this paragraph—
11 ‘‘(i) APPLICABLE MATERIAL.—The
12 term ‘applicable material’ means—
13 ‘‘(I) monoglycerides, diglycerides,
14 and triglycerides,
15 ‘‘(II) free fatty acids, and
16 ‘‘(III) fatty acid esters.
17 ‘‘(ii) BIOMASS.—The term ‘biomass’
18 has the same meaning given such term in
19 section 45K(c)(3).
20 ‘‘(e) GUIDANCE.—Not later than January 1, 2025, the
21 Secretary shall issue guidance regarding implementation of
22 this section, including calculation of emissions factors for
23 transportation fuel, the table described in subsection
24 (b)(1)(B)(i), and the determination of clean fuel production
25 credits under this section.
† HR 5376 EAS
500
1 ‘‘(f) SPECIAL RULES.—
2 ‘‘(1) ONLY REGISTERED PRODUCTION IN THE
3 UNITED STATES TAKEN INTO ACCOUNT.—
4 ‘‘(A) IN GENERAL.—No clean fuel produc-
5 tion credit shall be determined under subsection
6 (a) with respect to any transportation fuel un-
7 less—
8 ‘‘(i) the taxpayer—
9 ‘‘(I) is registered as a producer of
10 clean fuel under section 4101 at the
11 time of production, and
12 ‘‘(II) in the case of any transpor-
13 tation fuel which is a sustainable avia-
14 tion fuel, provides—
15 ‘‘(aa) certification (in such
16 form and manner as the Secretary
17 shall prescribe) from an unrelated
18 party demonstrating compliance
19 with—
20 ‘‘(AA) any general re-
21 quirements, supply chain
22 traceability requirements,
23 and information trans-
24 mission requirements estab-
25 lished under the Carbon Off-
† HR 5376 EAS
501
1 setting and Reduction
2 Scheme for International
3 Aviation described in sub-
4 clause (I) of subsection
5 (b)(1)(B)(iii), or
6 ‘‘(BB) in the case of
7 any methodology described in
8 subclause (II) of such sub-
9 section, requirements similar
10 to the requirements described
11 in subitem (AA), and
12 ‘‘(bb) such other information
13 with respect to such fuel as the
14 Secretary may require for pur-
15 poses of carrying out this section,
16 and
17 ‘‘(ii) such fuel is produced in the
18 United States.
19 ‘‘(B) UNITED STATES.—For purposes of this
20 paragraph, the term ‘United States’ includes any
21 possession of the United States.
22 ‘‘(2) PRODUCTION ATTRIBUTABLE TO THE TAX-
23 PAYER.—In the case of a facility in which more than
24 1 person has an ownership interest, except to the ex-
25 tent provided in regulations prescribed by the Sec-
† HR 5376 EAS
502
1 retary, production from the facility shall be allocated
2 among such persons in proportion to their respective
3 ownership interests in the gross sales from such facil-
4 ity.
5 ‘‘(3) RELATED PERSONS.—Persons shall be treat-
6 ed as related to each other if such persons would be
7 treated as a single employer under the regulations
8 prescribed under section 52(b). In the case of a cor-
9 poration which is a member of an affiliated group of
10 corporations filing a consolidated return, such cor-
11 poration shall be treated as selling fuel to an unre-
12 lated person if such fuel is sold to such a person by
13 another member of such group.
14 ‘‘(4) PASS-THRU IN THE CASE OF ESTATES AND
15 TRUSTS.—Under regulations prescribed by the Sec-
16 retary, rules similar to the rules of subsection (d) of
17 section 52 shall apply.
18 ‘‘(5) ALLOCATION OF CREDIT TO PATRONS OF AG-
19 RICULTURAL COOPERATIVE.—Rules similar to the
20 rules of section 45Y(g)(6) shall apply.
21 ‘‘(6) PREVAILING WAGE REQUIREMENTS.—
22 ‘‘(A) IN GENERAL.—Subject to subpara-
23 graph (B), rules similar to the rules of section
24 45(b)(7) shall apply.
† HR 5376 EAS
503
1 ‘‘(B) SPECIAL RULE FOR FACILITIES
2 PLACED IN SERVICE BEFORE JANUARY 1, 2025.—
3 For purposes of subparagraph (A), in the case of
4 any qualified facility placed in service before
5 January 1, 2025—
6 ‘‘(i) clause (i) of section 45(b)(7)(A)
7 shall not apply, and
8 ‘‘(ii) clause (ii) of such section shall be
9 applied by substituting ‘with respect to any
10 taxable year beginning after December 31,
11 2024, for which the credit is allowed under
12 this section’ for ‘with respect to any taxable
13 year, for any portion of such taxable year
14 which is within the period described in sub-
15 section (a)(2)(A)(ii)’.
16 ‘‘(7) APPRENTICESHIP REQUIREMENTS.—Rules
17 similar to the rules of section 45(b)(8) shall apply.
18 ‘‘(g) TERMINATION.—This section shall not apply to
19 transportation fuel sold after December 31, 2027.’’.
20 (b) CONFORMING AMENDMENTS.—
21 (1) Section 25C(d)(3), as amended by the pre-
22 ceding provisions of this Act, is amended—
23 (A) in subparagraph (A), by striking ‘‘and’’
24 at the end,
† HR 5376 EAS
504
1 (B) in subparagraph (B), by striking the
2 period at the end and inserting ‘‘, and’’, and
3 (C) by adding at the end the following new
4 subparagraph:
5 ‘‘(C) transportation fuel (as defined in sec-
6 tion 45Z(d)(5)).’’.
7 (2) Section 30C(c)(1)(B), as amended by the pre-
8 ceding provisions of this Act, is amended by adding
9 at the end the following new clause:
10 ‘‘(iv) Any transportation fuel (as de-
11 fined in section 45Z(d)(5)).’’.
12 (3) Section 38(b), as amended by the preceding
13 provisions of this Act, is amended—
14 (A) in paragraph (38), by striking ‘‘plus’’
15 at the end,
16 (B) in paragraph (39), by striking the pe-
17 riod at the end and inserting ‘‘, plus’’, and
18 (C) by adding at the end the following new
19 paragraph:
20 ‘‘(40) the clean fuel production credit determined
21 under section 45Z(a).’’.
22 (4) The table of sections for subpart D of part
23 IV of subchapter A of chapter 1, as amended by the
24 preceding provisions of this Act, is amended by add-
25 ing at the end the following new item:
‘‘Sec. 45Z. Clean fuel production credit.’’.
† HR 5376 EAS
505
1 (5) Section 4101(a)(1), as amended by the pre-
2 ceding provisions of this Act, is amended by inserting
3 ‘‘every person producing a fuel eligible for the clean
4 fuel production credit (pursuant to section 45Z),’’
5 after ‘‘section 6426(k)(3)),’’.
6 (c) EFFECTIVE DATE.—The amendments made by this
7 section shall apply to transportation fuel produced after De-
8 cember 31, 2024.
9 PART 8—CREDIT MONETIZATION AND
10 APPROPRIATIONS
11 SEC. 13801. ELECTIVE PAYMENT FOR ENERGY PROPERTY
12 AND ELECTRICITY PRODUCED FROM CERTAIN
13 RENEWABLE RESOURCES, ETC.
14 (a) IN GENERAL.—Subchapter B of chapter 65 is
15 amended by inserting after section 6416 the following new
16 section:
17 ‘‘SEC. 6417. ELECTIVE PAYMENT OF APPLICABLE CREDITS.
18 ‘‘(a) IN GENERAL.—In the case of an applicable entity
19 making an election (at such time and in such manner as
20 the Secretary may provide) under this section with respect
21 to any applicable credit determined with respect to such
22 entity, such entity shall be treated as making a payment
23 against the tax imposed by subtitle A (for the taxable year
24 with respect to which such credit was determined) equal to
25 the amount of such credit.
† HR 5376 EAS
506
1 ‘‘(b) APPLICABLE CREDIT.—The term ‘applicable cred-
2 it’ means each of the following:
3 ‘‘(1) So much of the credit for alternative fuel ve-
4 hicle refueling property allowed under section 30C
5 which, pursuant to subsection (d)(1) of such section,
6 is treated as a credit listed in section 38(b).
7 ‘‘(2) So much of the renewable electricity produc-
8 tion credit determined under section 45(a) as is at-
9 tributable to qualified facilities which are originally
10 placed in service after December 31, 2022.
11 ‘‘(3) So much of the credit for carbon oxide se-
12 questration determined under section 45Q(a) as is at-
13 tributable to carbon capture equipment which is
14 originally placed in service after December 31, 2022.
15 ‘‘(4) The zero-emission nuclear power production
16 credit determined under section 45U(a).
17 ‘‘(5) So much of the credit for production of
18 clean hydrogen determined under section 45V(a) as is
19 attributable to qualified clean hydrogen production
20 facilities which are originally placed in service after
21 December 31, 2012.
22 ‘‘(6) In the case of a tax-exempt entity described
23 in clause (i), (ii), or (iv) of section 168(h)(2)(A), the
24 credit for qualified commercial vehicles determined
† HR 5376 EAS
507
1 under section 45W by reason of subsection (d)(3)
2 thereof.
3 ‘‘(7) The credit for advanced manufacturing pro-
4 duction under section 45X(a).
5 ‘‘(8) The clean electricity production credit de-
6 termined under section 45Y(a).
7 ‘‘(9) The clean fuel production credit determined
8 under section 45Z(a).
9 ‘‘(10) The energy credit determined under section
10 48.
11 ‘‘(11) The qualifying advanced energy project
12 credit determined under section 48C.
13 ‘‘(12) The clean electricity investment credit de-
14 termined under section 48E.
15 ‘‘(c) APPLICATION TO PARTNERSHIPS AND S COR-
16 PORATIONS.—
17 ‘‘(1) IN GENERAL.—In the case of any applicable
18 credit determined with respect to any facility or
19 property held directly by a partnership or S corpora-
20 tion, any election under subsection (a) shall be made
21 by such partnership or S corporation. If such part-
22 nership or S corporation makes an election under
23 such subsection (in such manner as the Secretary
24 may provide) with respect to such credit—
† HR 5376 EAS
508
1 ‘‘(A) the Secretary shall make a payment to
2 such partnership or S corporation equal to the
3 amount of such credit,
4 ‘‘(B) subsection (e) shall be applied with re-
5 spect to such credit before determining any part-
6 ner’s distributive share, or shareholder’s pro rata
7 share, of such credit,
8 ‘‘(C) any amount with respect to which the
9 election in subsection (a) is made shall be treated
10 as tax exempt income for purposes of sections
11 705 and 1366, and
12 ‘‘(D) a partner’s distributive share of such
13 tax exempt income shall be based on such part-
14 ner’s distributive share of the otherwise applica-
15 ble credit for each taxable year.
16 ‘‘(2) COORDINATION WITH APPLICATION AT PART-
17 NER OR SHAREHOLDER LEVEL.—In the case of any
18 facility or property held directly by a partnership or
19 S corporation, no election by any partner or share-
20 holder shall be allowed under subsection (a) with re-
21 spect to any applicable credit determined with respect
22 to such facility or property.
23 ‘‘(3) TREATMENT OF PAYMENTS TO PARTNER-
24 SHIPS AND S CORPORATIONS.—For purposes of section
25 1324 of title 31, United States Code, the payments
† HR 5376 EAS
509
1 under paragraph (1)(A) shall be treated in the same
2 manner as a refund due from a credit provision re-
3 ferred to in subsection (b)(2) of such section.
4 ‘‘(d) SPECIAL RULES.—For purposes of this section—
5 ‘‘(1) APPLICABLE ENTITY.—
6 ‘‘(A) IN GENERAL.—The term ‘applicable
7 entity’ means—
8 ‘‘(i) any organization exempt from the
9 tax imposed by subtitle A,
10 ‘‘(ii) any State or political subdivision
11 thereof,
12 ‘‘(iii) the Tennessee Valley Authority,
13 ‘‘(iv) an Indian tribal government (as
14 defined in section 30D(g)(9)),
15 ‘‘(v) any Alaska Native Corporation
16 (as defined in section 3 of the Alaska Native
17 Claims Settlement Act (43 U.S.C. 1602(m)),
18 or
19 ‘‘(vi) any corporation operating on a
20 cooperative basis which is engaged in fur-
21 nishing electric energy to persons in rural
22 areas.
23 ‘‘(B) ELECTION WITH RESPECT TO CREDIT
24 FOR PRODUCTION OF CLEAN HYDROGEN.—If a
25 taxpayer other than an entity described in sub-
† HR 5376 EAS
510
1 paragraph (A) makes an election under this sub-
2 paragraph with respect to any taxable year in
3 which such taxpayer has placed in service a
4 qualified clean hydrogen production facility (as
5 defined in section 45V(c)(3)), such taxpayer shall
6 be treated as an applicable entity for purposes of
7 this section for such taxable year, but only with
8 respect to the credit described in subsection
9 (b)(5).
10 ‘‘(C) ELECTION WITH RESPECT TO CREDIT
11 FOR CARBON OXIDE SEQUESTRATION.—If a tax-
12 payer other than an entity described in subpara-
13 graph (A) makes an election under this subpara-
14 graph with respect to any taxable year in which
15 such taxpayer has, after December 31, 2022,
16 placed in service carbon capture equipment at a
17 qualified facility (as defined in section 45Q(d)),
18 such taxpayer shall be treated as an applicable
19 entity for purposes of this section for such tax-
20 able year, but only with respect to the credit de-
21 scribed in subsection (b)(3).
22 ‘‘(D) ELECTION WITH RESPECT TO AD-
23 VANCED MANUFACTURING PRODUCTION CRED-
24 IT.—
† HR 5376 EAS
511
1 ‘‘(i) IN GENERAL.—If a taxpayer other
2 than an entity described in subparagraph
3 (A) makes an election under this subpara-
4 graph with respect to any taxable year in
5 which such taxpayer has, after December
6 31, 2022, produced eligible components (as
7 defined in section 45X(c)(1)), such taxpayer
8 shall be treated as an applicable entity for
9 purposes of this section for such taxable
10 year, but only with respect to the credit de-
11 scribed in subsection (b)(7).
12 ‘‘(ii) LIMITATION.—
13 ‘‘(I) IN GENERAL.—Except as pro-
14 vided in subclause (II), if a taxpayer
15 makes an election under this subpara-
16 graph with respect to any taxable year,
17 such taxpayer shall be treated as hav-
18 ing made such election for each of the
19 4 succeeding taxable years ending be-
20 fore January 1, 2033.
21 ‘‘(II) EXCEPTION.—A taxpayer
22 may elect to revoke the application of
23 the election made under this subpara-
24 graph to any taxable year described in
25 subclause (I). Any such election, if
† HR 5376 EAS
512
1 made, shall apply to the applicable
2 year specified in such election and each
3 subsequent taxable year within the pe-
4 riod described in subclause (I). Any
5 election under this subclause may not
6 be subsequently revoked.
7 ‘‘(iii) PROHIBITION ON TRANSFER.—
8 For any taxable year described in clause
9 (ii)(I), no election may be made by the tax-
10 payer under section 6418(a) for such tax-
11 able year with respect to eligible components
12 for purposes of the credit described in sub-
13 section (b)(7).
14 ‘‘(E) OTHER RULES.—
15 ‘‘(i) IN GENERAL.—An election made
16 under subparagraph (B), (C), or (D) shall
17 be made at such time and in such manner
18 as the Secretary may provide.
19 ‘‘(ii) LIMITATION.—No election may be
20 made under subparagraph (B), (C), or (D)
21 with respect to any taxable year beginning
22 after December 31, 2032.
23 ‘‘(2) APPLICATION.—In the case of any applica-
24 ble entity which makes the election described in sub-
† HR 5376 EAS
513
1 section (a), any applicable credit shall be deter-
2 mined—
3 ‘‘(A) without regard to paragraphs (3) and
4 (4)(A)(i) of section 50(b), and
5 ‘‘(B) by treating any property with respect
6 to which such credit is determined as used in a
7 trade or business of the applicable entity.
8 ‘‘(3) ELECTIONS.—
9 ‘‘(A) IN GENERAL.—
10 ‘‘(i) DUE DATE.—Any election under
11 subsection (a) shall be made not later
12 than—
13 ‘‘(I) in the case of any govern-
14 ment, or political subdivision, de-
15 scribed in paragraph (1) and for which
16 no return is required under section
17 6011 or 6033(a), such date as is deter-
18 mined appropriate by the Secretary, or
19 ‘‘(II) in any other case, the due
20 date (including extensions of time) for
21 the return of tax for the taxable year
22 for which the election is made, but in
23 no event earlier than 180 days after
24 the date of the enactment of this sec-
25 tion.
† HR 5376 EAS
514
1 ‘‘(ii) ADDITIONAL RULES.—Any elec-
2 tion under subsection (a), once made, shall
3 be irrevocable and shall apply (except as
4 otherwise provided in this paragraph) with
5 respect to any credit for the taxable year for
6 which the election is made.
7 ‘‘(B) RENEWABLE ELECTRICITY PRODUC-
8 TION CREDIT.—In the case of the credit described
9 in subsection (b)(2), any election under sub-
10 section (a) shall—
11 ‘‘(i) apply separately with respect to
12 each qualified facility,
13 ‘‘(ii) be made for the taxable year in
14 which such qualified facility is originally
15 placed in service, and
16 ‘‘(iii) shall apply to such taxable year
17 and to any subsequent taxable year which is
18 within the period described in subsection
19 (a)(2)(A)(ii) of section 45 with respect to
20 such qualified facility.
21 ‘‘(C) CREDIT FOR CARBON OXIDE SEQUES-
22 TRATION.—
23 ‘‘(i) IN GENERAL.—In the case of the
24 credit described in subsection (b)(3), any
25 election under subsection (a) shall—
† HR 5376 EAS
515
1 ‘‘(I) apply separately with respect
2 to the carbon capture equipment origi-
3 nally placed in service by the applica-
4 ble entity during a taxable year, and
5 ‘‘(II)(aa) in the case of a taxpayer
6 who makes an election described in
7 paragraph (1)(C), apply to the taxable
8 year in which such equipment is
9 placed in service and the 4 subsequent
10 taxable years with respect to such
11 equipment which end before January
12 1, 2033, and
13 ‘‘(bb) in any other case, apply to
14 such taxable year and to any subse-
15 quent taxable year which is within the
16 period described in paragraph (3)(A)
17 or (4)(A) of section 45Q(a) with re-
18 spect to such equipment.
19 ‘‘(ii) PROHIBITION ON TRANSFER.—
20 For any taxable year described in clause
21 (i)(II)(aa) with respect to carbon capture
22 equipment, no election may be made by the
23 taxpayer under section 6418(a) for such
24 taxable year with respect to such equipment
† HR 5376 EAS
516
1 for purposes of the credit described in sub-
2 section (b)(3).
3 ‘‘(iii) REVOCATION OF ELECTION.—In
4 the case of a taxpayer who makes an elec-
5 tion described in paragraph (1)(C) with re-
6 spect to carbon capture equipment, such
7 taxpayer may, at any time during the pe-
8 riod described in clause (i)(II)(aa), revoke
9 the application of such election with respect
10 to such equipment for any subsequent tax-
11 able years during such period. Any such
12 election, if made, shall apply to the applica-
13 ble year specified in such election and each
14 subsequent taxable year within the period
15 described in clause (i)(II)(aa). Any election
16 under this subclause may not be subse-
17 quently revoked.
18 ‘‘(D) CREDIT FOR PRODUCTION OF CLEAN
19 HYDROGEN.—
20 ‘‘(i) IN GENERAL.—In the case of the
21 credit described in subsection (b)(5), any
22 election under subsection (a) shall—
23 ‘‘(I) apply separately with respect
24 to each qualified clean hydrogen pro-
25 duction facility,
† HR 5376 EAS
517
1 ‘‘(II) be made for the taxable year
2 in which such facility is placed in
3 service (or within the 1-year period
4 subsequent to the date of enactment of
5 this section in the case of facilities
6 placed in service before December 31,
7 2022), and
8 ‘‘(III)(aa) in the case of a tax-
9 payer who makes an election described
10 in paragraph (1)(B), apply to such
11 taxable year and the 4 subsequent tax-
12 able years with respect to such facility
13 which end before January 1, 2033, and
14 ‘‘(bb) in any other case, apply to
15 such taxable year and all subsequent
16 taxable years with respect to such facil-
17 ity.
18 ‘‘(ii) PROHIBITION ON TRANSFER.—
19 For any taxable year described in clause
20 (i)(III)(aa) with respect to a qualified clean
21 hydrogen production facility, no election
22 may be made by the taxpayer under section
23 6418(a) for such taxable year with respect
24 to such facility for purposes of the credit de-
25 scribed in subsection (b)(5).
† HR 5376 EAS
518
1 ‘‘(iii) REVOCATION OF ELECTION.—In
2 the case of a taxpayer who makes an elec-
3 tion described in paragraph (1)(B) with re-
4 spect to a qualified clean hydrogen produc-
5 tion facility, such taxpayer may, at any
6 time during the period described in clause
7 (i)(III)(aa), revoke the application of such
8 election with respect to such facility for any
9 subsequent taxable years during such pe-
10 riod. Any such election, if made, shall apply
11 to the applicable year specified in such elec-
12 tion and each subsequent taxable year with-
13 in the period described in clause (i)(II)(aa).
14 Any election under this subclause may not
15 be subsequently revoked.
16 ‘‘(E) CLEAN ELECTRICITY PRODUCTION
17 CREDIT.—In the case of the credit described in
18 subsection (b)(8), any election under subsection
19 (a) shall—
20 ‘‘(i) apply separately with respect to
21 each qualified facility,
22 ‘‘(ii) be made for the taxable year in
23 which such facility is placed in service, and
24 ‘‘(iii) shall apply to such taxable year
25 and to any subsequent taxable year which is
† HR 5376 EAS
519
1 within the period described in subsection
2 (b)(1)(B) of section 45Y with respect to such
3 facility.
4 ‘‘(4) TIMING.—The payment described in sub-
5 section (a) shall be treated as made on—
6 ‘‘(A) in the case of any government, or po-
7 litical subdivision, described in paragraph (1)
8 and for which no return is required under sec-
9 tion 6011 or 6033(a), the later of the date that
10 a return would be due under section 6033(a) if
11 such government or subdivision were described in
12 that section or the date on which such govern-
13 ment or subdivision submits a claim for credit or
14 refund (at such time and in such manner as the
15 Secretary shall provide), and
16 ‘‘(B) in any other case, the later of the due
17 date (determined without regard to extensions) of
18 the return of tax for the taxable year or the date
19 on which such return is filed.
20 ‘‘(5) ADDITIONAL INFORMATION.—As a condition
21 of, and prior to, any amount being treated as a pay-
22 ment which is made by an applicable entity under
23 subsection (a), the Secretary may require such infor-
24 mation or registration as the Secretary deems nec-
25 essary for purposes of preventing duplication, fraud,
† HR 5376 EAS
520
1 improper payments, or excessive payments under this
2 section.
3 ‘‘(6) EXCESSIVE PAYMENT.—
4 ‘‘(A) IN GENERAL.—In the case of any
5 amount treated as a payment which is made by
6 the applicable entity under subsection (a), or the
7 amount of the payment made pursuant to sub-
8 section (c), which the Secretary determines con-
9 stitutes an excessive payment, the tax imposed
10 on such entity by chapter 1 (regardless of wheth-
11 er such entity would otherwise be subject to tax
12 under such chapter) for the taxable year in
13 which such determination is made shall be in-
14 creased by an amount equal to the sum of—
15 ‘‘(i) the amount of such excessive pay-
16 ment, plus
17 ‘‘(ii) an amount equal to 20 percent of
18 such excessive payment.
19 ‘‘(B) REASONABLE CAUSE.—Subparagraph
20 (A)(ii) shall not apply if the applicable entity
21 demonstrates to the satisfaction of the Secretary
22 that the excessive payment resulted from reason-
23 able cause.
24 ‘‘(C) EXCESSIVE PAYMENT DEFINED.—For
25 purposes of this paragraph, the term ‘excessive
† HR 5376 EAS
521
1 payment’ means, with respect to a facility or
2 property for which an election is made under
3 this section for any taxable year, an amount
4 equal to the excess of—
5 ‘‘(i) the amount treated as a payment
6 which is made by the applicable entity
7 under subsection (a), or the amount of the
8 payment made pursuant to subsection (c),
9 with respect to such facility or property for
10 such taxable year, over
11 ‘‘(ii) the amount of the credit which,
12 without application of this section, would be
13 otherwise allowable (as determined pursu-
14 ant to paragraph (2) and without regard to
15 section 38(c)) under this title with respect
16 to such facility or property for such taxable
17 year.
18 ‘‘(e) DENIAL OF DOUBLE BENEFIT.—In the case of an
19 applicable entity making an election under this section with
20 respect to an applicable credit, such credit shall be reduced
21 to zero and shall, for any other purposes under this title,
22 be deemed to have been allowed to such entity for such tax-
23 able year.
24 ‘‘(f) MIRROR CODE POSSESSIONS.—In the case of any
25 possession of the United States with a mirror code tax sys-
† HR 5376 EAS
522
1 tem (as defined in section 24(k)), this section shall not be
2 treated as part of the income tax laws of the United States
3 for purposes of determining the income tax law of such pos-
4 session unless such possession elects to have this section be
5 so treated.
6 ‘‘(g) BASIS REDUCTION AND RECAPTURE.—Except as
7 otherwise provided in subsection (c)(2)(A), rules similar to
8 the rules of section 50 shall apply for purposes of this sec-
9 tion.
10 ‘‘(h) REGULATIONS.—The Secretary shall issue such
11 regulations or other guidance as may be necessary to carry
12 out the purposes of this section, including guidance to en-
13 sure that the amount of the payment or deemed payment
14 made under this section is commensurate with the amount
15 of the credit that would be otherwise allowable (determined
16 without regard to section 38(c)).’’.
17 (b) TRANSFER OF CERTAIN CREDITS.—Subchapter B
18 of chapter 65, as amended by subsection (a), is amended
19 by inserting after section 6417 the following new section:
20 ‘‘SEC. 6418. TRANSFER OF CERTAIN CREDITS.
21 ‘‘(a) IN GENERAL.—In the case of an eligible taxpayer
22 which elects to transfer all (or any portion specified in the
23 election) of an eligible credit determined with respect to
24 such taxpayer for any taxable year to a taxpayer (referred
25 to in this section as the ‘transferee taxpayer’) which is not
† HR 5376 EAS
523
1 related (within the meaning of section 267(b) or 707(b)(1))
2 to the eligible taxpayer, the transferee taxpayer specified in
3 such election (and not the eligible taxpayer) shall be treated
4 as the taxpayer for purposes of this title with respect to
5 such credit (or such portion thereof).
6 ‘‘(b) TREATMENT OF PAYMENTS MADE IN CONNECTION
7 WITH TRANSFER.—With respect to any amount paid by
8 a transferee taxpayer to an eligible taxpayer as consider-
9 ation for a transfer described in subsection (a), such consid-
10 eration—
11 ‘‘(1) shall be required to be paid in cash,
12 ‘‘(2) shall not be includible in gross income of
13 the eligible taxpayer, and
14 ‘‘(3) with respect to the transferee taxpayer, shall
15 not be deductible under this title.
16 ‘‘(c) APPLICATION TO PARTNERSHIPS AND S COR-
17 PORATIONS.—
18 ‘‘(1) IN GENERAL.—In the case of any eligible
19 credit determined with respect to any facility or
20 property held directly by a partnership or S corpora-
21 tion, if such partnership or S corporation makes an
22 election under subsection (a) (in such manner as the
23 Secretary may provide) with respect to such credit—
24 ‘‘(A) any amount received as consideration
25 for a transfer described in such subsection shall
† HR 5376 EAS
524
1 be treated as tax exempt income for purposes of
2 sections 705 and 1366, and
3 ‘‘(B) a partner’s distributive share of such
4 tax exempt income shall be based on such part-
5 ner’s distributive share of the otherwise eligible
6 credit for each taxable year.
7 ‘‘(2) COORDINATION WITH APPLICATION AT PART-
8 NER OR SHAREHOLDER LEVEL.—In the case of any
9 facility or property held directly by a partnership or
10 S corporation, no election by any partner or share-
11 holder shall be allowed under subsection (a) with re-
12 spect to any eligible credit determined with respect to
13 such facility or property.
14 ‘‘(d) TAXABLE YEAR IN WHICH CREDIT TAKEN INTO
15 ACCOUNT.—In the case of any credit (or portion thereof)
16 with respect to which an election is made under subsection
17 (a), such credit shall be taken into account in the first tax-
18 able year of the transferee taxpayer ending with, or after,
19 the taxable year of the eligible taxpayer with respect to
20 which the credit was determined.
21 ‘‘(e) LIMITATIONS ON ELECTION.—
22 ‘‘(1) TIME FOR ELECTION.—An election under
23 subsection (a) to transfer any portion of an eligible
24 credit shall be made not later than the due date (in-
25 cluding extensions of time) for the return of tax for
† HR 5376 EAS
525
1 the taxable year for which the credit is determined,
2 but in no event earlier than 180 days after the date
3 of the enactment of this section. Any such election,
4 once made, shall be irrevocable.
5 ‘‘(2) NO ADDITIONAL TRANSFERS.—No election
6 may be made under subsection (a) by a transferee
7 taxpayer with respect to any portion of an eligible
8 credit which has been previously transferred to such
9 taxpayer pursuant to this section.
10 ‘‘(f) DEFINITIONS.—For purposes of this section—
11 ‘‘(1) ELIGIBLE CREDIT.—
12 ‘‘(A) IN GENERAL.—The term ‘eligible cred-
13 it’ means each of the following:
14 ‘‘(i) So much of the credit for alter-
15 native fuel vehicle refueling property al-
16 lowed under section 30C which, pursuant to
17 subsection (d)(1) of such section, is treated
18 as a credit listed in section 38(b).
19 ‘‘(ii) The renewable electricity produc-
20 tion credit determined under section 45(a).
21 ‘‘(iii) The credit for carbon oxide se-
22 questration determined under section
23 45Q(a).
† HR 5376 EAS
526
1 ‘‘(iv) The zero-emission nuclear power
2 production credit determined under section
3 45U(a).
4 ‘‘(v) The clean hydrogen production
5 credit determined under section 45V(a).
6 ‘‘(vi) The advanced manufacturing
7 production credit determined under section
8 45X(a).
9 ‘‘(vii) The clean electricity production
10 credit determined under section 45Y(a).
11 ‘‘(viii) The clean fuel production credit
12 determined under section 45Z(a).
13 ‘‘(ix) The energy credit determined
14 under section 48.
15 ‘‘(x) The qualifying advanced energy
16 project credit determined under section 48C.
17 ‘‘(xi) The clean electricity investment
18 credit determined under section 48E.
19 ‘‘(B) ELECTION FOR CERTAIN CREDITS.—In
20 the case of any eligible credit described in clause
21 (ii), (iii), (v), or (vii) of subparagraph (A), an
22 election under subsection (a) shall be made—
23 ‘‘(i) separately with respect to each fa-
24 cility for which such credit is determined,
25 and
† HR 5376 EAS
527
1 ‘‘(ii) for each taxable year during the
2 10-year period beginning on the date such
3 facility was originally placed in service (or,
4 in the case of the credit described in clause
5 (iii), for each year during the 12-year pe-
6 riod beginning on the date the carbon cap-
7 ture equipment was originally placed in
8 service at such facility).
9 ‘‘(C) EXCEPTION FOR BUSINESS CREDIT
10 CARRYFORWARDS OR CARRYBACKS.—The term
11 ‘eligible credit’ shall not include any business
12 credit carryforward or business credit carryback
13 determined under section 39.
14 ‘‘(2) ELIGIBLE TAXPAYER.—The term ‘eligible
15 taxpayer’ means any taxpayer which is not described
16 in section 6417(d)(1)(A).
17 ‘‘(g) SPECIAL RULES.—For purposes of this section—
18 ‘‘(1) ADDITIONAL INFORMATION.—As a condition
19 of, and prior to, any transfer of any portion of an
20 eligible credit pursuant to subsection (a), the Sec-
21 retary may require such information (including, in
22 such form or manner as is determined appropriate by
23 the Secretary, such information returns) or registra-
24 tion as the Secretary deems necessary for purposes of
† HR 5376 EAS
528
1 preventing duplication, fraud, improper payments, or
2 excessive payments under this section.
3 ‘‘(2) EXCESSIVE CREDIT TRANSFER.—
4 ‘‘(A) IN GENERAL.—In the case of any por-
5 tion of an eligible credit which is transferred to
6 a transferee taxpayer pursuant to subsection (a)
7 which the Secretary determines constitutes an ex-
8 cessive credit transfer, the tax imposed on the
9 transferee taxpayer by chapter 1 (regardless of
10 whether such entity would otherwise be subject to
11 tax under such chapter) for the taxable year in
12 which such determination is made shall be in-
13 creased by an amount equal to the sum of—
14 ‘‘(i) the amount of such excessive credit
15 transfer, plus
16 ‘‘(ii) an amount equal to 20 percent of
17 such excessive credit transfer.
18 ‘‘(B) REASONABLE CAUSE.—Subparagraph
19 (A)(ii) shall not apply if the transferee taxpayer
20 demonstrates to the satisfaction of the Secretary
21 that the excessive credit transfer resulted from
22 reasonable cause.
23 ‘‘(C) EXCESSIVE CREDIT TRANSFER DE-
24 FINED.—For purposes of this paragraph, the
25 term ‘excessive credit transfer’ means, with re-
† HR 5376 EAS
529
1 spect to a facility or property for which an elec-
2 tion is made under subsection (a) for any tax-
3 able year, an amount equal to the excess of—
4 ‘‘(i) the amount of the eligible credit
5 claimed by the transferee taxpayer with re-
6 spect to such facility or property for such
7 taxable year, over
8 ‘‘(ii) the amount of such credit which,
9 without application of this section, would be
10 otherwise allowable under this title with re-
11 spect to such facility or property for such
12 taxable year.
13 ‘‘(3) BASIS REDUCTION; NOTIFICATION OF RE-
14 CAPTURE.—In the case of any election under sub-
15 section (a) with respect to any portion of an eligible
16 credit described in clauses (ix) through (xi) of sub-
17 section (f)(1)(A)—
18 ‘‘(A) subsection (c) of section 50 shall apply
19 to the applicable investment credit property (as
20 defined in subsection (a)(5) of such section) as if
21 such eligible credit was allowed to the eligible
22 taxpayer, and
23 ‘‘(B) if, during any taxable year, the appli-
24 cable investment credit property (as defined in
25 subsection (a)(5) of section 50) is disposed of, or
† HR 5376 EAS
530
1 otherwise ceases to be investment credit property
2 with respect to the eligible taxpayer, before the
3 close of the recapture period (as described in sub-
4 section (a)(1) of such section)—
5 ‘‘(i) such eligible taxpayer shall pro-
6 vide notice of such occurrence to the trans-
7 feree taxpayer (in such form and manner as
8 the Secretary shall prescribe), and
9 ‘‘(ii) the transferee taxpayer shall pro-
10 vide notice of the recapture amount (as de-
11 fined in subsection (c)(2) of such section), if
12 any, to the eligible taxpayer (in such form
13 and manner as the Secretary shall pre-
14 scribe).
15 ‘‘(4) PROHIBITION ON ELECTION OR TRANSFER
16 WITH RESPECT TO PROGRESS EXPENDITURES.—This
17 section shall not apply with respect to any amount of
18 an eligible credit which is allowed pursuant to rules
19 similar to the rules of subsections (c)(4) and (d) of
20 section 46 (as in effect on the day before the date of
21 the enactment of the Revenue Reconciliation Act of
22 1990).
23 ‘‘(h) REGULATIONS.—The Secretary shall issue such
24 regulations or other guidance as may be necessary to carry
25 out the purposes of this section, including regulations or
† HR 5376 EAS
531
1 other guidance providing rules for determining a partner’s
2 distributive share of the tax exempt income described in
3 subsection (c)(1).’’.
4 (c) REAL ESTATE INVESTMENT TRUSTS.—Section
5 50(d) is amended by adding at the end the following: ‘‘In
6 the case of a real estate investment trust making an election
7 under section 6418, paragraphs (1)(B) and (2)(B) of the
8 section 46(e) referred to in paragraph (1) of this subsection
9 shall not apply to any investment credit property of such
10 real estate investment trust to which such election applies.’’.
11 (d) 3-YEAR CARRYBACK FOR APPLICABLE CREDITS.—
12 Section 39(a) is amended by adding at the end the fol-
13 lowing:
14 ‘‘(4) 3-YEAR CARRYBACK FOR APPLICABLE CRED-
15 ITS.—Notwithstanding subsection (d), in the case of
16 any applicable credit (as defined in section
17 6417(b))—
18 ‘‘(A) this section shall be applied separately
19 from the business credit (other than the applica-
20 ble credit),
21 ‘‘(B) paragraph (1) shall be applied by sub-
22 stituting ‘each of the 3 taxable years’ for ‘the
23 taxable year’ in subparagraph (A) thereof, and
24 ‘‘(C) paragraph (2) shall be applied—
† HR 5376 EAS
532
1 ‘‘(i) by substituting ‘23 taxable years’
2 for ‘21 taxable years’ in subparagraph (A)
3 thereof, and
4 ‘‘(ii) by substituting ‘22 taxable years’
5 for ‘20 taxable years’ in subparagraph (B)
6 thereof.’’.
7 (e) CLERICAL AMENDMENT.—The table of sections for
8 subchapter B of chapter 65 is amended by inserting after
9 the item relating to section 6416 the following new items:
‘‘Sec. 6417. Elective payment of applicable credits.
‘‘Sec. 6418. Transfer of certain credits.’’.
10 (f) GROSS-UP OF DIRECT SPENDING.—Beginning in
11 fiscal year 2023 and each fiscal year thereafter, the portion
12 of any payment made to a taxpayer pursuant to an election
13 under section 6417 of the Internal Revenue Code of 1986,
14 or any amount treated as a payment which is made by
15 the taxpayer under subsection (a) of such section, that is
16 direct spending shall be increased by 6.0445 percent.
17 (g) EFFECTIVE DATE.—The amendments made by this
18 section shall apply to taxable years beginning after Decem-
19 ber 31, 2022.
20 SEC. 13802. APPROPRIATIONS.
21 Immediately upon the enactment of this Act, in addi-
22 tion to amounts otherwise available, there are appropriated
23 for fiscal year 2022, out of any money in the Treasury not
24 otherwise appropriated, $500,000,000 to remain available
† HR 5376 EAS
533
1 until September 30, 2031, for necessary expenses for the In-
2 ternal Revenue Service to carry out this subtitle (and the
3 amendments made by this subtitle), which shall supplement
4 and not supplant any other appropriations that may be
5 available for this purpose.
6 PART 9—OTHER PROVISIONS
7 SEC. 13901. PERMANENT EXTENSION OF TAX RATE TO FUND
8 BLACK LUNG DISABILITY TRUST FUND.
9 (a) IN GENERAL.—Section 4121 is amended by strik-
10 ing subsection (e).
11 (b) EFFECTIVE DATE.—The amendment made by this
12 section shall apply to sales in calendar quarters beginning
13 after the date which is 1 day after the date of enactment
14 of this Act.
15 SEC. 13902. INCREASE IN RESEARCH CREDIT AGAINST PAY-
16 ROLL TAX FOR SMALL BUSINESSES.
17 (a) IN GENERAL.—Clause (i) of section 41(h)(4)(B) is
18 amended—
19 (1) by striking ‘‘AMOUNT.—The amount’’ and
20 inserting ‘‘AMOUNT.—
21 ‘‘(I) IN GENERAL.—The amount’’,
22 and
23 (2) by adding at the end the following new sub-
24 clause:
† HR 5376 EAS
534
1 ‘‘(II) INCREASE.—In the case of
2 taxable years beginning after December
3 31, 2022, the amount in subclause (I)
4 shall be increased by $250,000.’’.
5 (b) ALLOWANCE OF CREDIT.—
6 (1) IN GENERAL.—Paragraph (1) of section
7 3111(f) is amended—
8 (A) by striking ‘‘for a taxable year, there
9 shall be allowed’’ and inserting ‘‘for a taxable
10 year—
11 ‘‘(A) there shall be allowed’’,
12 (B) by striking ‘‘equal to the’’ and inserting
13 ‘‘equal to so much of the’’,
14 (C) by striking the period at the end and
15 inserting ‘‘as does not exceed the limitation of
16 subclause (I) of section 41(h)(4)(B)(i) (applied
17 without regard to subclause (II) thereof), and’’,
18 and
19 (D) by adding at the end the following new
20 subparagraph:
21 ‘‘(B) there shall be allowed as a credit
22 against the tax imposed by subsection (b) for the
23 first calendar quarter which begins after the date
24 on which the taxpayer files the return specified
25 in section 41(h)(4)(A)(ii) an amount equal to so
† HR 5376 EAS
535
1 much of the payroll tax credit portion deter-
2 mined under section 41(h)(2) as is not allowed
3 as a credit under subparagraph (A).’’.
4 (2) LIMITATION.—Paragraph (2) of section
5 3111(f) is amended—
6 (A) by striking ‘‘paragraph (1)’’ and insert-
7 ing ‘‘paragraph (1)(A)’’, and
8 (B) by inserting ‘‘, and the credit allowed
9 by paragraph (1)(B) shall not exceed the tax im-
10 posed by subsection (b) for any calendar quar-
11 ter,’’ after ‘‘calendar quarter’’.
12 (3) CARRYOVER.—Paragraph (3) of section
13 3111(f) is amended by striking ‘‘the credit’’ and in-
14 serting ‘‘any credit’’.
15 (4) DEDUCTION ALLOWED.—Paragraph (4) of
16 section 3111(f) is amended—
17 (A) by striking ‘‘credit’’ and inserting
18 ‘‘credits’’, and
19 (B) by striking ‘‘subsection (a)’’ and insert-
20 ing ‘‘subsection (a) or (b)’’.
21 (c) AGGREGATION RULES.—Clause (ii) of section
22 41(h)(5)(B) is amended by striking ‘‘the $250,000 amount’’
23 and inserting ‘‘each of the $250,000 amounts’’.
† HR 5376 EAS
536
1 (d) EFFECTIVE DATE.—The amendments made by this
2 section shall apply to taxable years beginning after Decem-
3 ber 31, 2022.
4 SEC. 13903. REINSTATEMENT OF LIMITATION RULES FOR
5 DEDUCTION FOR STATE AND LOCAL, ETC.,
6 TAXES; EXTENSION OF LIMITATION ON EX-
7 CESS BUSINESS LOSSES OF NONCORPORATE
8 TAXPAYERS.
9 (a) REINSTATEMENT OF LIMITATION RULES FOR DE-
10 DUCTION FOR STATE AND LOCAL, ETC., TAXES.—
11 (1) IN GENERAL.—Section 164(b)(6), as amend-
12 ed by section 13904, is further amended—
13 (A) in the heading, by striking ‘‘2026’’ and
14 inserting ‘‘2025’’, and
15 (B) by striking ‘‘2027’’ and inserting
16 ‘‘2026’’.
17 (2) EFFECTIVE DATE.—The amendments made
18 by this subsection shall apply to taxable years begin-
19 ning after December 31, 2022.
20 (b) EXTENSION OF LIMITATION ON EXCESS BUSINESS
21 LOSSES OF NONCORPORATE TAXPAYERS.—
22 (1) IN GENERAL.—Section 461(l)(1) is amended
23 by striking ‘‘January 1, 2027’’ each place it appears
24 and inserting ‘‘January 1, 2029’’.
† HR 5376 EAS
537
1 (2) EFFECTIVE DATE.—The amendments made
2 by this subsection shall apply to taxable years begin-
3 ning after December 31, 2026.
4 SEC. 13904. REMOVAL OF HARMFUL SMALL BUSINESS
5 TAXES; EXTENSION OF LIMITATION ON DE-
6 DUCTION FOR STATE AND LOCAL, ETC.,
7 TAXES.
8 (a) REMOVAL OF HARMFUL SMALL BUSINESS
9 TAXES.—Subparagraph (D) of section 59(k)(1), as added
10 by section 10101, is amended to read as follows:
11 ‘‘(D) SPECIAL RULES FOR DETERMINING
12 APPLICABLE CORPORATION STATUS.—Solely for
13 purposes of determining whether a corporation is
14 an applicable corporation under this paragraph,
15 all adjusted financial statement income of per-
16 sons treated as a single employer with such cor-
17 poration under subsection (a) or (b) of section 52
18 shall be treated as adjusted financial statement
19 income of such corporation, and adjusted finan-
20 cial statement income of such corporation shall
21 be determined without regard to paragraphs
22 (2)(D)(i) and (11) of section 56A(c).’’.
23 (b) EXTENSION OF LIMITATION ON DEDUCTION FOR
24 STATE AND LOCAL, ETC., TAXES.—
† HR 5376 EAS
538
1 (1) IN GENERAL.—Section 164(b)(6) is amend-
2 ed—
3 (A) in the heading, by striking ‘‘2025’’ and
4 inserting ‘‘2026’’, and
5 (B) by striking ‘‘2026’’ and inserting
6 ‘‘2027’’.
7 (2) EFFECTIVE DATE.—The amendments made
8 by this subsection shall apply to taxable years begin-
9 ning after December 31, 2022.
10 TITLE II—COMMITTEE ON AGRI-
11 CULTURE, NUTRITION, AND
12 FORESTRY
13 Subtitle A—General Provisions
14 SEC. 20001. DEFINITION OF SECRETARY.
15 In this title, the term ‘‘Secretary’’ means the Secretary
16 of Agriculture.
17 Subtitle B—Conservation
18 SEC. 21001. ADDITIONAL AGRICULTURAL CONSERVATION
19 INVESTMENTS.
20 (a) APPROPRIATIONS.—In addition to amounts other-
21 wise available (and subject to subsection (b)), there are ap-
22 propriated to the Secretary, out of any money in the Treas-
23 ury not otherwise appropriated, to remain available until
24 September 30, 2031 (subject to the condition that no such
25 funds may be disbursed after September 30, 2031)—
† HR 5376 EAS
539
1 (1) to carry out, using the facilities and authori-
2 ties of the Commodity Credit Corporation, the envi-
3 ronmental quality incentives program under sub-
4 chapter A of chapter 4 of subtitle D of title XII of the
5 Food Security Act of 1985 (16 U.S.C. 3839aa through
6 3839aa–8)—
7 (A)(i) $250,000,000 for fiscal year 2023;
8 (ii) $1,750,000,000 for fiscal year 2024;
9 (iii) $3,000,000,000 for fiscal year 2025;
10 and
11 (iv) $3,450,000,000 for fiscal year 2026;
12 and
13 (B) subject to the conditions on the use of
14 the funds that—
15 (i) section 1240B(f)(1) of the Food Se-
16 curity Act of 1985 (16 U.S.C. 3839aa–
17 2(f)(1)) shall not apply;
18 (ii) section 1240H(c)(2) of the Food
19 Security Act of 1985 (16 U.S.C. 3839aa–
20 8(c)(2)) shall be applied—
21 (I) by substituting ‘‘$50,000,000’’
22 for ‘‘$25,000,000’’; and
23 (II) with the Secretary
24 prioritizing proposals that utilize diet
25 and feed management to reduce enteric
† HR 5376 EAS
540
1 methane emissions from ruminants;
2 and
3 (iii) the funds shall be available for 1
4 or more agricultural conservation practices
5 or enhancements that the Secretary deter-
6 mines directly improve soil carbon, reduce
7 nitrogen losses, or reduce, capture, avoid, or
8 sequester carbon dioxide, methane, or ni-
9 trous oxide emissions, associated with agri-
10 cultural production;
11 (2) to carry out, using the facilities and authori-
12 ties of the Commodity Credit Corporation, the con-
13 servation stewardship program under subchapter B of
14 that chapter (16 U.S.C. 3839aa–21 through 3839aa–
15 25)—
16 (A)(i) $250,000,000 for fiscal year 2023;
17 (ii) $500,000,000 for fiscal year 2024;
18 (iii) $1,000,000,000 for fiscal year 2025;
19 and
20 (iv) $1,500,000,000 for fiscal year 2026;
21 and
22 (B) subject to the condition on the use of the
23 funds that the funds shall only be available for
24 1 or more agricultural conservation practices,
25 enhancements, or bundles that the Secretary de-
† HR 5376 EAS
541
1 termines directly improve soil carbon, reduce ni-
2 trogen losses, or reduce, capture, avoid, or seques-
3 ter carbon dioxide, methane, or nitrous oxide
4 emissions, associated with agricultural produc-
5 tion;
6 (3) to carry out, using the facilities and authori-
7 ties of the Commodity Credit Corporation, the agri-
8 cultural conservation easement program under sub-
9 title H of title XII of that Act (16 U.S.C. 3865
10 through 3865d) for easements or interests in land that
11 will most reduce, capture, avoid, or sequester carbon
12 dioxide, methane, or nitrous oxide emissions associ-
13 ated with land eligible for the program—
14 (A) $100,000,000 for fiscal year 2023;
15 (B) $200,000,000 for fiscal year 2024;
16 (C) $500,000,000 for fiscal year 2025; and
17 (D) $600,000,000 for fiscal year 2026; and
18 (4) to carry out, using the facilities and authori-
19 ties of the Commodity Credit Corporation, the re-
20 gional conservation partnership program under sub-
21 title I of title XII of that Act (16 U.S.C. 3871 through
22 3871f)—
23 (A)(i) $250,000,000 for fiscal year 2023;
24 (ii) $800,000,000 for fiscal year 2024;
† HR 5376 EAS
542
1 (iii) $1,500,000,000 for fiscal year 2025;
2 and
3 (iv) $2,400,000,000 for fiscal year 2026;
4 and
5 (B) subject to the conditions on the use of
6 the funds that—
7 (i) section 1271C(d)(2)(B) of the Food
8 Security Act of 1985 (16 U.S.C.
9 3871c(d)(2)(B)) shall not apply; and
10 (ii) the Secretary shall prioritize part-
11 nership agreements under section 1271C(d)
12 of the Food Security Act of 1985 (16 U.S.C.
13 3871c(d)) that support the implementation
14 of conservation projects that assist agricul-
15 tural producers and nonindustrial private
16 forestland owners in directly improving soil
17 carbon, reducing nitrogen losses, or reduc-
18 ing, capturing, avoiding, or sequestering
19 carbon dioxide, methane, or nitrous oxide
20 emissions, associated with agricultural pro-
21 duction.
22 (b) CONDITIONS.—The funds made available under
23 subsection (a) are subject to the conditions that the Sec-
24 retary shall not—
25 (1) enter into any agreement—
† HR 5376 EAS
543
1 (A) that is for a term extending beyond
2 September 30, 2031; or
3 (B) under which any payment could be
4 outlaid or funds disbursed after September 30,
5 2031; or
6 (2) use any other funds available to the Sec-
7 retary to satisfy obligations initially made under this
8 section.
9 (c) CONFORMING AMENDMENTS.—
10 (1) Section 1240B of the Food Security Act of
11 1985 (16 U.S.C. 3839aa–2) is amended—
12 (A) in subsection (a), by striking ‘‘2023’’
13 and inserting ‘‘2031’’; and
14 (B) in subsection (f)(2)(B)—
15 (i) in the subparagraph heading, by
16 striking ‘‘2023’’ and inserting ‘‘2031’’; and
17 (ii) by striking ‘‘2023’’ and inserting
18 ‘‘2031’’.
19 (2) Section 1240H of the Food Security Act of
20 1985 (16 U.S.C. 3839aa–8) is amended by striking
21 ‘‘2023’’ each place it appears and inserting ‘‘2031’’.
22 (3) Section 1240J(a) of the Food Security Act of
23 1985 (16 U.S.C. 3839aa–22(a)) is amended, in the
24 matter preceding paragraph (1), by striking ‘‘2023’’
25 and inserting ‘‘2031’’.
† HR 5376 EAS
544
1 (4) Section 1240L(h)(2)(A) of the Food Security
2 Act of 1985 (16 U.S.C. 3839aa–24(h)(2)(A)) is
3 amended by striking ‘‘2023’’ and inserting ‘‘2031’’.
4 (5) Section 1241 of the Food Security Act of
5 1985 (16 U.S.C. 3841) is amended—
6 (A) in subsection (a)—
7 (i) in the matter preceding paragraph
8 (1), by striking ‘‘2023’’ and inserting
9 ‘‘2031’’;
10 (ii) in paragraph (2)(F), by striking
11 ‘‘2023’’ and inserting ‘‘2031’’; and
12 (iii) in paragraph (3), by striking ‘‘fis-
13 cal year 2023’’ each place it appears and
14 inserting ‘‘each of fiscal years 2023 through
15 2031’’;
16 (B) in subsection (b), by striking ‘‘2023’’
17 and inserting ‘‘2031’’; and
18 (C) in subsection (h)—
19 (i) in paragraph (1)(B), in the sub-
20 paragraph heading, by striking ‘‘2023’’ and
21 inserting ‘‘2031’’; and
22 (ii) by striking ‘‘2023’’ each place it
23 appears and inserting ‘‘2031’’.
† HR 5376 EAS
545
1 (6) Section 1244(n)(3)(A) of the Food Security
2 Act of 1985 (16 U.S.C. 3844(n)(3)(A)) is amended by
3 striking ‘‘2023’’ and inserting ‘‘2031’’.
4 (7) Section 1271D(a) of the Food Security Act of
5 1985 (16 U.S.C. 3871d(a)) is amended by striking
6 ‘‘2023’’ and inserting ‘‘2031’’.
7 SEC. 21002. CONSERVATION TECHNICAL ASSISTANCE.
8 (a) APPROPRIATIONS.—In addition to amounts other-
9 wise available (and subject to subsection (b)), there are ap-
10 propriated to the Secretary for fiscal year 2022, out of any
11 money in the Treasury not otherwise appropriated, to re-
12 main available until September 30, 2031 (subject to the con-
13 dition that no such funds may be disbursed after September
14 30, 2031)—
15 (1) $1,000,000,000 to provide conservation tech-
16 nical assistance through the Natural Resources Con-
17 servation Service; and
18 (2) $300,000,000 to carry out a program to
19 quantify carbon sequestration and carbon dioxide,
20 methane, and nitrous oxide emissions, through which
21 the Natural Resources Conservation Service shall col-
22 lect field-based data to assess the carbon sequestration
23 and reduction in carbon dioxide, methane, and ni-
24 trous oxide emissions outcomes associated with activi-
25 ties carried out pursuant to this section and use the
† HR 5376 EAS
546
1 data to monitor and track those carbon sequestration
2 and emissions trends through the Greenhouse Gas In-
3 ventory and Assessment Program of the Department
4 of Agriculture.
5 (b) CONDITIONS.—The funds made available under
6 this section are subject to the conditions that the Secretary
7 shall not—
8 (1) enter into any agreement—
9 (A) that is for a term extending beyond
10 September 30, 2031; or
11 (B) under which any payment could be
12 outlaid or funds disbursed after September 30,
13 2031;
14 (2) use any other funds available to the Sec-
15 retary to satisfy obligations initially made under this
16 section; or
17 (3) interpret this section to authorize funds of
18 the Commodity Credit Corporation for activities
19 under this section if such funds are not expressly au-
20 thorized or currently expended for such purposes.
21 (c) ADMINISTRATIVE COSTS.—In addition to amounts
22 otherwise available, there is appropriated to the Secretary
23 for fiscal year 2022, out of any money in the Treasury not
24 otherwise appropriated, $100,000,000, to remain available
25 until September 30, 2028, for administrative costs of the
† HR 5376 EAS
547
1 agencies and offices of the Department of Agriculture for
2 costs related to implementing this section.
3 Subtitle C—Rural Development and
4 Agricultural Credit
5 SEC. 22001. ADDITIONAL FUNDING FOR ELECTRIC LOANS
6 FOR RENEWABLE ENERGY.
7 Section 9003 of the Farm Security and Rural Invest-
8 ment Act of 2002 (7 U.S.C. 8103) is amended by adding
9 at the end the following:
10 ‘‘(h) ADDITIONAL FUNDING FOR ELECTRIC LOANS FOR
11 RENEWABLE ENERGY.—
12 ‘‘(1) APPROPRIATIONS.—Notwithstanding sub-
13 sections (a) through (e), and (g), in addition to
14 amounts otherwise available, there is appropriated to
15 the Secretary for fiscal year 2022, out of any money
16 in the Treasury not otherwise appropriated,
17 $1,000,000,000, to remain available until September
18 30, 2031, for the cost of loans under section 317 of the
19 Rural Electrification Act of 1936 (7 U.S.C. 940g), in-
20 cluding for projects that store electricity that support
21 the types of eligible projects under that section, which
22 shall be forgiven in an amount that is not greater
23 than 50 percent of the loan based on how the borrower
24 and the project meets the terms and conditions for
25 loan forgiveness consistent with the purposes of that
† HR 5376 EAS
548
1 section established by the Secretary, except as pro-
2 vided in paragraph (3).
3 ‘‘(2) LIMITATION.—The Secretary shall not enter
4 into any loan agreement pursuant this subsection
5 that could result in disbursements after September 30,
6 2031.
7 ‘‘(3) EXCEPTION.—The Secretary shall establish
8 criteria for waiving the 50 percent limitation de-
9 scribed in paragraph (1).’’.
10 SEC. 22002. RURAL ENERGY FOR AMERICA PROGRAM.
11 (a) APPROPRIATION.—In addition to amounts other-
12 wise available, there is appropriated to the Secretary, out
13 of any money in the Treasury not otherwise appropriated,
14 for eligible projects under section 9007 of the Farm Security
15 and Rural Investment Act of 2002 (7 U.S.C. 8107), and
16 notwithstanding section 9007(c)(3)(A) of that Act, the
17 amount of a grant shall not exceed 50 percent of the cost
18 of the activity carried out using the grant funds—
19 (1) $820,250,000 for fiscal year 2022, to remain
20 available until September 30, 2031; and
21 (2) $180,276,500 for each of fiscal years 2023
22 through 2027, to remain available until September
23 30, 2031.
24 (b) UNDERUTILIZED RENEWABLE ENERGY TECH-
25 NOLOGIES.—In addition to amounts otherwise available,
† HR 5376 EAS
549
1 there is appropriated to the Secretary, out of any money
2 in the Treasury not otherwise appropriated, to provide
3 grants and loans guaranteed by the Secretary (including
4 the costs of such loans) under the program described in sub-
5 section (a) relating to underutilized renewable energy tech-
6 nologies, and to provide technical assistance for applying
7 to the program described in subsection (a), including for
8 underutilized renewable energy technologies, notwith-
9 standing section 9007(c)(3)(A) of the Farm Security and
10 Rural Investment Act of 2002 (7 U.S.C. 8107(c)(3)(A)), the
11 amount of a grant shall not exceed 50 percent of the cost
12 of the activity carried out using the grant funds, and to
13 the extent the following amounts remain available at the
14 end of each fiscal year, the Secretary shall use such amounts
15 in accordance with subsection (a)—
16 (1) $144,750,000 for fiscal year 2022, to remain
17 available until September 30, 2031; and
18 (2) $31,813,500 for each of fiscal years 2023
19 through 2027, to remain available until September
20 30, 2031.
21 (c) LIMITATION.—The Secretary shall not enter into,
22 pursuant to this section—
23 (1) any loan agreement that may result in a dis-
24 bursement after September 30, 2031; or
† HR 5376 EAS
550
1 (2) any grant agreement that may result in any
2 outlay after September 30, 2031.
3 SEC. 22003. BIOFUEL INFRASTRUCTURE AND AGRICULTURE
4 PRODUCT MARKET EXPANSION.
5 Section 9003 of the Farm Security and Rural Invest-
6 ment Act of 2002 (7 U.S.C. 8103) (as amended by section
7 22001) is amended by adding at the end the following:
8 ‘‘(i) BIOFUEL INFRASTRUCTURE AND AGRICULTURE
9 PRODUCT MARKET EXPANSION.—
10 ‘‘(1) APPROPRIATION.—Notwithstanding sub-
11 sections (a) through (e) and subsection (g), in addi-
12 tion to amounts otherwise available, there is appro-
13 priated to the Secretary for fiscal year 2022, out of
14 any money in the Treasury not otherwise appro-
15 priated, $500,000,000, to remain available until Sep-
16 tember 30, 2031, to carry out this subsection.
17 ‘‘(2) USE OF FUNDS.—The Secretary shall use
18 the amounts made available by paragraph (1) to pro-
19 vide grants, for which the Federal share shall be not
20 more than 75 percent of the total cost of carrying out
21 a project for which the grant is provided, on a com-
22 petitive basis, to increase the sale and use of agricul-
23 tural commodity-based fuels through infrastructure
24 improvements for blending, storing, supplying, or dis-
25 tributing biofuels, except for transportation infra-
† HR 5376 EAS
551
1 structure not on location where such biofuels are
2 blended, stored, supplied, or distributed—
3 ‘‘(A) by installing, retrofitting, or otherwise
4 upgrading fuel dispensers or pumps and related
5 equipment, storage tank system components, and
6 other infrastructure required at a location re-
7 lated to dispensing certain biofuel blends to en-
8 sure the increased sales of fuels with high levels
9 of commodity-based ethanol and biodiesel that
10 are at or greater than the levels required in the
11 Notice of Funding Availability for the Higher
12 Blends Infrastructure Incentive Program for Fis-
13 cal Year 2020, published in the Federal Register
14 (85 Fed. Reg. 26656), as determined by the Sec-
15 retary; and
16 ‘‘(B) by building and retrofitting home
17 heating oil distribution centers or equivalent en-
18 tities and distribution systems for ethanol and
19 biodiesel blends.’’.
20 SEC. 22004. USDA ASSISTANCE FOR RURAL ELECTRIC CO-
21 OPERATIVES.
22 Section 9003 of the Farm Security and Rural Invest-
23 ment Act of 2002 (7 U.S.C. 8103) (as amended by section
24 22003) is amended by adding at the end the following:
† HR 5376 EAS
552
1 ‘‘(j) USDA ASSISTANCE FOR RURAL ELECTRIC CO-
2 OPERATIVES.—
3 ‘‘(1) APPROPRIATION.—Notwithstanding sub-
4 sections (a) through (e) and (g), in addition to
5 amounts otherwise available, there is appropriated to
6 the Secretary for fiscal year 2022, out of any money
7 in the Treasury not otherwise appropriated,
8 $9,700,000,000, to remain available until September
9 30, 2031, for the long-term resiliency, reliability, and
10 affordability of rural electric systems by providing to
11 an eligible entity (defined as an electric cooperative
12 described in section 501(c)(12) or 1381(a)(2) of the
13 Internal Revenue Code of 1986 and is or has been a
14 Rural Utilities Service electric loan borrower pursu-
15 ant to the Rural Electrification Act of 1936 or serv-
16 ing a predominantly rural area or a wholly or jointly
17 owned subsidiary of such electric cooperative) loans,
18 modifications of loans, the cost of loans and modifica-
19 tions, and other financial assistance to achieve the
20 greatest reduction in carbon dioxide, methane, and
21 nitrous oxide emissions associated with rural electric
22 systems through the purchase of renewable energy, re-
23 newable energy systems, zero-emission systems, and
24 carbon capture and storage systems, to deploy such
25 systems, or to make energy efficiency improvements to
† HR 5376 EAS
553
1 electric generation and transmission systems of the el-
2 igible entity after the date of enactment of this sub-
3 section.
4 ‘‘(2) LIMITATION.—No eligible entity may receive
5 an amount equal to more than 10 percent of the total
6 amount made available by this subsection.
7 ‘‘(3) REQUIREMENT.—The amount of a grant
8 under this subsection shall be not more than 25 per-
9 cent of the total project costs of the eligible entity car-
10 rying out a project using a grant under this sub-
11 section.
12 ‘‘(4) PROHIBITION.—Nothing in this subsection
13 shall be interpreted to authorize funds of the Com-
14 modity Credit Corporation for activities under this
15 subsection if such funds are not expressly authorized
16 or currently expended for such purposes.
17 ‘‘(5) DISBURSEMENTS.—The Secretary shall not
18 enter into, pursuant to this subsection—
19 ‘‘(A) any loan agreement that may result in
20 a disbursement after September 30, 2031; or
21 ‘‘(B) any grant agreement that may result
22 in any outlay after September 30, 2031.’’.
† HR 5376 EAS
554
1 SEC. 22005. ADDITIONAL USDA RURAL DEVELOPMENT AD-
2 MINISTRATIVE FUNDS.
3 In addition to amounts otherwise available, there is
4 appropriated to the Secretary for fiscal year 2022, out of
5 any money in the Treasury not otherwise appropriated,
6 $100,000,000, to remain available until September 30,
7 2031, for administrative costs and salaries and expenses for
8 the Rural Development mission area and administrative
9 costs of the agencies and offices of the Department for costs
10 related to implementing this subtitle.
11 SEC. 22006. FARM LOAN IMMEDIATE RELIEF FOR BOR-
12 ROWERS WITH AT-RISK AGRICULTURAL OPER-
13 ATIONS.
14 In addition to amounts otherwise available, there is
15 appropriated to the Secretary for fiscal year 2022, out of
16 amounts in the Treasury not otherwise appropriated,
17 $3,100,000,000, to remain available until September 30,
18 2031, to provide payments to, for the cost of loans or loan
19 modifications for, or to carry out section 331(b)(4) of the
20 Consolidated Farm and Rural Development Act (7 U.S.C.
21 1981(b)(4)) with respect to distressed borrowers of direct or
22 guaranteed loans administered by the Farm Service Agency
23 under subtitle A, B, or C of that Act (7 U.S.C. 1922 through
24 1970). In carrying out this section, the Secretary shall pro-
25 vide relief to those borrowers whose agricultural operations
† HR 5376 EAS
555
1 are at financial risk as expeditiously as possible, as deter-
2 mined by the Secretary.
3 SEC. 22007. USDA ASSISTANCE AND SUPPORT FOR UNDER-
4 SERVED FARMERS, RANCHERS, AND FOR-
5 ESTERS.
6 Section 1006 of the American Rescue Plan Act of 2021
7 (7 U.S.C. 2279 note; Public Law 117–2) is amended to read
8 as follows:
9 ‘‘SEC. 1006. USDA ASSISTANCE AND SUPPORT FOR UNDER-
10 SERVED FARMERS, RANCHERS, FORESTERS.
11 ‘‘(a) TECHNICAL AND OTHER ASSISTANCE.—In addi-
12 tion to amounts otherwise available, there is appropriated
13 to the Secretary of Agriculture for fiscal year 2022, to re-
14 main available until September 30, 2031, out of any money
15 in the Treasury not otherwise appropriated, $125,000,000
16 to provide outreach, mediation, financial training, capacity
17 building training, cooperative development and agricul-
18 tural credit training and support, and other technical as-
19 sistance on issues concerning food, agriculture, agricultural
20 credit, agricultural extension, rural development, or nutri-
21 tion to underserved farmers, ranchers, or forest landowners,
22 including veterans, limited resource producers, beginning
23 farmers and ranchers, and farmers, ranchers, and forest
24 landowners living in high poverty areas.
† HR 5376 EAS
556
1 ‘‘(b) LAND LOSS ASSISTANCE.—In addition to
2 amounts otherwise available, there is appropriated to the
3 Secretary of Agriculture for fiscal year 2022, to remain
4 available until September 30, 2031, out of any money in
5 the Treasury not otherwise appropriated, $250,000,000 to
6 provide grants and loans to eligible entities, as determined
7 by the Secretary, to improve land access (including heirs’
8 property and fractionated land issues) for underserved
9 farmers, ranchers, and forest landowners, including vet-
10 erans, limited resource producers, beginning farmers and
11 ranchers, and farmers, ranchers, and forest landowners liv-
12 ing in high poverty areas.
13 ‘‘(c) EQUITY COMMISSIONS.—In addition to amounts
14 otherwise available, there is appropriated to the Secretary
15 of Agriculture for fiscal year 2022, to remain available
16 until September 30, 2031, out of any money in the Treasury
17 not otherwise appropriated, $10,000,000 to fund the activi-
18 ties of one or more equity commissions that will address
19 racial equity issues within the Department of Agriculture
20 and the programs of the Department of Agriculture.
21 ‘‘(d) RESEARCH, EDUCATION, AND EXTENSION.—In
22 addition to amounts otherwise available, there is appro-
23 priated to the Secretary of Agriculture for fiscal year 2022,
24 to remain available until September 30, 2031, out of any
25 money in the Treasury not otherwise appropriated,
† HR 5376 EAS
557
1 $250,000,000 to support and supplement agricultural re-
2 search, education, and extension, as well as scholarships
3 and programs that provide internships and pathways to ag-
4 ricultural sector or Federal employment, for 1890 Institu-
5 tions (as defined in section 2 of the Agricultural, Research,
6 Extension, and Education Reform Act of 1998 (7 U.S.C.
7 7601)), 1994 Institutions (as defined in section 532 of the
8 Equity in Educational Land-Grant Status Act of 1994 (7
9 U.S.C. 301 note; Public Law 103–382)), Alaska Native
10 serving institutions and Native Hawaiian serving institu-
11 tions eligible to receive grants under subsections (a) and
12 (b), respectively, of section 1419B of the National Agricul-
13 tural Research, Extension, and Teaching Policy Act of 1977
14 (7 U.S.C. 3156), Hispanic-serving institutions eligible to
15 receive grants under section 1455 of the National Agricul-
16 tural Research, Extension, and Teaching Policy Act of 1977
17 (7 U.S.C. 3241), and the insular area institutions of higher
18 education located in the territories of the United States, as
19 referred to in section 1489 of the National Agricultural Re-
20 search, Extension, and Teaching Policy Act of 1977 (7
21 U.S.C. 3361).
22 ‘‘(e) DISCRIMINATION FINANCIAL ASSISTANCE.—In
23 addition to amounts otherwise available, there is appro-
24 priated to the Secretary of Agriculture for fiscal year 2022,
25 to remain available until September 30, 2031, out of any
† HR 5376 EAS
558
1 money in the Treasury not otherwise appropriated,
2 $2,200,000,000 for a program to provide financial assist-
3 ance, including the cost of any financial assistance, to
4 farmers, ranchers, or forest landowners determined to have
5 experienced discrimination prior to January 1, 2021, in
6 Department of Agriculture farm lending programs, under
7 which the amount of financial assistance provided to a re-
8 cipient may be not more than $500,000, as determined to
9 be appropriate based on any consequences experienced from
10 the discrimination, which program shall be administered
11 through 1 or more qualified nongovernmental entities se-
12 lected by the Secretary subject to standards set and enforced
13 by the Secretary.
14 ‘‘(f) ADMINISTRATIVE COSTS.—In addition to amounts
15 otherwise available, there is appropriated to the Secretary
16 of Agriculture for fiscal year 2022, to remain available
17 until September 30, 2031, out of any money in the Treasury
18 not otherwise appropriated, $24,000,000 for administrative
19 costs, including training employees, of the agencies and of-
20 fices of the Department of Agriculture to carry out this sec-
21 tion.
22 ‘‘(g) LIMITATION.—The funds made available under
23 this section are subject to the condition that the Secretary
24 shall not—
† HR 5376 EAS
559
1 ‘‘(1) enter into any agreement under which any
2 payment could be outlaid or funds disbursed after
3 September 30, 2031; or
4 ‘‘(2) use any other funds available to the Sec-
5 retary to satisfy obligations initially made under this
6 section.’’.
7 SEC. 22008. REPEAL OF FARM LOAN ASSISTANCE.
8 Section 1005 of the American Rescue Plan Act of 2021
9 (7 U.S.C. 1921 note; Public Law 117–2) is repealed.
10 Subtitle D—Forestry
11 SEC. 23001. NATIONAL FOREST SYSTEM RESTORATION AND
12 FUELS REDUCTION PROJECTS.
13 (a) APPROPRIATIONS.—In addition to amounts other-
14 wise available, there are appropriated to the Secretary for
15 fiscal year 2022, out of any money in the Treasury not
16 otherwise appropriated, to remain available until Sep-
17 tember 30, 2031—
18 (1) $1,800,000,000 for hazardous fuels reduction
19 projects on National Forest System land within the
20 wildland-urban interface;
21 (2) $200,000,000 for vegetation management
22 projects on National Forest System land carried out
23 in accordance with a plan developed under section
24 303(d)(1) or 304(a)(3) of the Healthy Forests Res-
† HR 5376 EAS
560
1 toration Act of 2003 (16 U.S.C. 6542(d)(1) or
2 6543(a)(3));
3 (3) $100,000,000 to provide for environmental
4 reviews by the Chief of the Forest Service in satis-
5 fying the obligations of the Chief of the Forest Service
6 under the National Environmental Policy Act of 1969
7 (42 U.S.C. 4321 through 4370m–12); and
8 (4) $50,000,000 for the protection of old-growth
9 forests on National Forest System land and to com-
10 plete an inventory of old-growth forests and mature
11 forests within the National Forest System.
12 (b) RESTRICTIONS.—None of the funds made available
13 by paragraph (1) or (2) of subsection (a) may be used for
14 any activity—
15 (1) conducted in a wilderness area or wilderness
16 study area;
17 (2) that includes the construction of a permanent
18 road or motorized trail;
19 (3) that includes the construction of a temporary
20 road, except in the case of a temporary road that is
21 decommissioned by the Secretary not later than 3
22 years after the earlier of—
23 (A) the date on which the temporary road
24 is no longer needed; and
† HR 5376 EAS
561
1 (B) the date on which the project for which
2 the temporary road was constructed is completed;
3 (4) inconsistent with the applicable land man-
4 agement plan;
5 (5) inconsistent with the prohibitions of the rule
6 of the Forest Service entitled ‘‘Special Areas; Roadless
7 Area Conservation’’ (66 Fed. Reg. 3244 (January 12,
8 2001)), as modified by subparts C and D of part 294
9 of title 36, Code of Federal Regulations; or
10 (6) carried out on any land that is not National
11 Forest System land, including other forested land on
12 Federal, State, Tribal, or private land.
13 (c) LIMITATIONS.—Nothing in this section shall be in-
14 terpreted to authorize funds of the Commodity Credit Cor-
15 poration for activities under this section if such funds are
16 not expressly authorized or currently expended for such pur-
17 poses.
18 (d) COST-SHARING WAIVER.—
19 (1) IN GENERAL.—The non-Federal cost-share re-
20 quirement of a project described in paragraph (2)
21 may be waived at the discretion of the Secretary.
22 (2) PROJECT DESCRIBED.—A project referred to
23 in paragraph (1) is a project that—
24 (A) is carried out using funds made avail-
25 able under this section;
† HR 5376 EAS
562
1 (B) requires a partnership agreement, in-
2 cluding a cooperative agreement or mutual inter-
3 est agreement; and
4 (C) is subject to a non-Federal cost-share re-
5 quirement.
6 (e) DEFINITIONS.—In this section:
7 (1) DECOMMISSION.—The term ‘‘decommission’’
8 means, with respect to a road—
9 (A) reestablishing native vegetation on the
10 road;
11 (B) restoring any natural drainage, water-
12 shed function, or other ecological processes that
13 were disrupted or adversely impacted by the
14 road by removing or hydrologically dis-
15 connecting the road prism and reestablishing
16 stable slope contours; and
17 (C) effectively blocking the road to vehicular
18 traffic, where feasible.
19 (2) ECOLOGICAL INTEGRITY.—The term ‘‘ecologi-
20 cal integrity’’ has the meaning given the term in sec-
21 tion 219.19 of title 36, Code of Federal Regulations
22 (as in effect on the date of enactment of this Act).
23 (3) HAZARDOUS FUELS REDUCTION PROJECT.—
24 The term ‘‘hazardous fuels reduction project’’ means
25 an activity, including the use of prescribed fire, to
† HR 5376 EAS
563
1 protect structures and communities from wildfire that
2 is carried out on National Forest System land.
3 (4) RESTORATION.—The term ‘‘restoration’’ has
4 the meaning given the term in section 219.19 of title
5 36, Code of Federal Regulations (as in effect on the
6 date of enactment of this Act).
7 (5) VEGETATION MANAGEMENT PROJECT.—The
8 term ‘‘vegetation management project’’ means an ac-
9 tivity carried out on National Forest System land to
10 enhance the ecological integrity and achieve the res-
11 toration of a forest ecosystem through the removal of
12 vegetation, the use of prescribed fire, the restoration
13 of aquatic habitat, or the decommissioning of an un-
14 authorized, temporary, or system road.
15 (6) WILDLAND-URBAN INTERFACE.—The term
16 ‘‘wildland-urban interface’’ has the meaning given the
17 term in section 101 of the Healthy Forests Restora-
18 tion Act of 2003 (16 U.S.C. 6511).
19 SEC. 23002. COMPETITIVE GRANTS FOR NON-FEDERAL FOR-
20 EST LANDOWNERS.
21 (a) APPROPRIATIONS.—In addition to amounts other-
22 wise available, there are appropriated to the Secretary for
23 fiscal year 2022, out of any money in the Treasury not
24 otherwise appropriated, to remain available until Sep-
25 tember 30, 2031—
† HR 5376 EAS
564
1 (1) $150,000,000 for the competitive grant pro-
2 gram under section 13A of the Cooperative Forestry
3 Assistance Act of 1978 (16 U.S.C. 2109a) for pro-
4 viding through that program a cost share to carry out
5 climate mitigation or forest resilience practices in the
6 case of underserved forest landowners, subject to the
7 condition that subsection (h) of that section shall not
8 apply;
9 (2) $150,000,000 for the competitive grant pro-
10 gram under section 13A of the Cooperative Forestry
11 Assistance Act of 1978 (16 U.S.C. 2109a) for pro-
12 viding through that program grants to support the
13 participation of underserved forest landowners in
14 emerging private markets for climate mitigation or
15 forest resilience, subject to the condition that sub-
16 section (h) of that section shall not apply;
17 (3) $100,000,000 for the competitive grant pro-
18 gram under section 13A of the Cooperative Forestry
19 Assistance Act of 1978 (16 U.S.C. 2109a) for pro-
20 viding through that program grants to support the
21 participation of forest landowners who own less than
22 2,500 acres of forest land in emerging private markets
23 for climate mitigation or forest resilience, subject to
24 the condition that subsection (h) of that section shall
25 not apply;
† HR 5376 EAS
565
1 (4) $50,000,000 for the competitive grant pro-
2 gram under section 13A of the Cooperative Forestry
3 Assistance Act of 1978 (16 U.S.C. 2109a) to provide
4 grants to states and other eligible entities to provide
5 payments to owners of private forest land for imple-
6 mentation of forestry practices on private forest land,
7 that are determined by the Secretary, based on the
8 best available science, to provide measurable increases
9 in carbon sequestration and storage beyond customary
10 practices on comparable land, subject to the condi-
11 tions that—
12 (A) those payments shall not preclude land-
13 owners from participation in other public and
14 private sector financial incentive programs; and
15 (B) subsection (h) of that section shall not
16 apply; and
17 (5) $100,000,000 to provide grants under the
18 wood innovation grant program under section 8643 of
19 the Agriculture Improvement Act of 2018 (7 U.S.C.
20 7655d), including for the construction of new facili-
21 ties that advance the purposes of the program and for
22 the hauling of material removed to reduce hazardous
23 fuels to locations where that material can be utilized,
24 subject to the conditions that—
† HR 5376 EAS
566
1 (A) the amount of such a grant shall be not
2 more than $5,000,000; and
3 (B) notwithstanding subsection (d) of that
4 section, a recipient of such a grant shall provide
5 funds equal to not less than 50 percent of the
6 amount received under the grant, to be derived
7 from non-Federal sources.
8 (b) COST-SHARING REQUIREMENT.—Any partnership
9 agreements, including cooperative agreements and mutual
10 interest agreements, using funds made available under this
11 section shall be subject to a non-Federal cost-share require-
12 ment of not less than 20 percent of the project cost, which
13 may be waived at the discretion of the Secretary.
14 (c) LIMITATIONS.—Nothing in this section shall be in-
15 terpreted to authorize funds of the Commodity Credit Cor-
16 poration for activities under this section if such funds are
17 not expressly authorized or currently expended for such pur-
18 poses.
19 SEC. 23003. STATE AND PRIVATE FORESTRY CONSERVATION
20 PROGRAMS.
21 (a) APPROPRIATIONS.—In addition to amounts other-
22 wise available, there are appropriated to the Secretary for
23 fiscal year 2022, out of any money in the Treasury not
24 otherwise appropriated, to remain available until Sep-
25 tember 30, 2031—
† HR 5376 EAS
567
1 (1) $700,000,000 to provide competitive grants
2 to States through the Forest Legacy Program estab-
3 lished under section 7 of the Cooperative Forestry As-
4 sistance Act of 1978 (16 U.S.C. 2103c) for projects for
5 the acquisition of land and interests in land; and
6 (2) $1,500,000,000 to provide multiyear, pro-
7 grammatic, competitive grants to a State agency, a
8 local governmental entity, an agency or governmental
9 entity of the District of Columbia, an agency or gov-
10 ernmental entity of an insular area (as defined in
11 section 1404 of the National Agricultural Research,
12 Extension, and Teaching Policy Act of 1977 (7 U.S.C.
13 3103)), an Indian Tribe, or a nonprofit organization
14 through the Urban and Community Forestry Assist-
15 ance program established under section 9(c) of the Co-
16 operative Forestry Assistance Act of 1978 (16 U.S.C.
17 2105(c)) for tree planting and related activities.
18 (b) WAIVER.—Any non-Federal cost-share requirement
19 otherwise applicable to projects carried out under this sec-
20 tion may be waived at the discretion of the Secretary.
21 SEC. 23004. LIMITATION.
22 The funds made available under this subtitle are sub-
23 ject to the condition that the Secretary shall not—
24 (1) enter into any agreement—
† HR 5376 EAS
568
1 (A) that is for a term extending beyond
2 September 30, 2031; or
3 (B) under which any payment could be
4 outlaid or funds disbursed after September 30,
5 2031; or
6 (2) use any other funds available to the Sec-
7 retary to satisfy obligations initially made under this
8 subtitle.
9 SEC. 23005. ADMINISTRATIVE COSTS.
10 In addition to amounts otherwise available, there is
11 appropriated to the Secretary for fiscal year 2022, out of
12 any money in the Treasury not otherwise appropriated,
13 $100,000,000 to remain available until September 30, 2031,
14 for administrative costs of the agencies and offices of the
15 Department of Agriculture for costs related to implementing
16 this subtitle.
17 TITLE III—COMMITTEE ON BANK-
18 ING, HOUSING, AND URBAN
19 AFFAIRS
20 SEC. 30001. ENHANCED USE OF DEFENSE PRODUCTION ACT
21 OF 1950.
22 In addition to amounts otherwise available, there is
23 appropriated for fiscal year 2022, out of any money in the
24 Treasury not otherwise appropriated, $500,000,000, to re-
† HR 5376 EAS
569
1 main available until September 30, 2024, to carry out the
2 Defense Production Act of 1950 (50 U.S.C. 4501 et seq.).
3 SEC. 30002. IMPROVING ENERGY EFFICIENCY OR WATER EF-
4 FICIENCY OR CLIMATE RESILIENCE OF AF-
5 FORDABLE HOUSING.
6 (a) APPROPRIATION.—In addition to amounts other-
7 wise available, there is appropriated to the Secretary of
8 Housing and Urban Development (in this section referred
9 to as the ‘‘Secretary’’) for fiscal year 2022, out of any
10 money in the Treasury not otherwise appropriated—
11 (1) $837,500,000, to remain available until Sep-
12 tember 30, 2028, for the cost of providing direct loans,
13 the costs of modifying such loans, and for grants, as
14 provided for and subject to terms and conditions in
15 subsection (b), including to subsidize gross obligations
16 for the principal amount of such loans, not to exceed
17 $4,000,000,000, to fund projects that improve energy
18 or water efficiency, enhance indoor air quality or sus-
19 tainability, implement the use of zero-emission elec-
20 tricity generation, low-emission building materials or
21 processes, energy storage, or building electrification
22 strategies, or address climate resilience, of an eligible
23 property;
24 (2) $60,000,000, to remain available until Sep-
25 tember 30, 2030, for the costs to the Secretary for in-
† HR 5376 EAS
570
1 formation technology, research and evaluation, and
2 administering and overseeing the implementation of
3 this section;
4 (3) $60,000,000, to remain available until Sep-
5 tember 30, 2029, for expenses of contracts or coopera-
6 tive agreements administered by the Secretary; and
7 (4) $42,500,000, to remain available until Sep-
8 tember 30, 2028, for energy and water benchmarking
9 of properties eligible to receive grants or loans under
10 this section, regardless of whether they actually re-
11 ceived such grants or loans, along with associated
12 data analysis and evaluation at the property and
13 portfolio level, and the development of information
14 technology systems necessary for the collection, evalua-
15 tion, and analysis of such data.
16 (b) LOAN AND GRANT TERMS AND CONDITIONS.—
17 Amounts made available under this section shall be for di-
18 rect loans, grants, and direct loans that can be converted
19 to grants to eligible recipients that agree to an extended
20 period of affordability for the property.
21 (c) DEFINITIONS.—As used in this section—
22 (1) the term ‘‘eligible recipient’’ means any
23 owner or sponsor of an eligible property; and
24 (2) the term ‘‘eligible property’’ means a prop-
25 erty assisted pursuant to—
† HR 5376 EAS
571
1 (A) section 202 of the Housing Act of 1959
2 (12 U.S.C. 1701q);
3 (B) section 202 of the Housing Act of 1959
4 (former 12 U.S.C. 1701q), as such section existed
5 before the enactment of the Cranston-Gonzalez
6 National Affordable Housing Act;
7 (C) section 811 of the Cranston-Gonzalez
8 National Affordable Housing Act (42 U.S.C.
9 8013);
10 (D) section 8(b) of the United States Hous-
11 ing Act of 1937 (42 U.S.C. 1437f(b));
12 (E) section 236 of the National Housing Act
13 (12 U.S.C. 1715z–1); or
14 (F) a Housing Assistance Payments con-
15 tract for Project-Based Rental Assistance in fis-
16 cal year 2021.
17 (d) WAIVER.—The Secretary may waive or specify al-
18 ternative requirements for any provision of subsection (c)
19 or (bb) of section 8 of the United States Housing Act of
20 1937 (42 U.S.C. 1437f(c), 1437f(bb)) upon a finding that
21 the waiver or alternative requirement is necessary to facili-
22 tate the use of amounts made available under this section.
23 (e) IMPLEMENTATION.—The Secretary shall have the
24 authority to establish by notice any requirements that the
25 Secretary determines are necessary for timely and effective
† HR 5376 EAS
572
1 implementation of the program and expenditure of funds
2 appropriated, which requirements shall take effect upon
3 issuance.
4 TITLE IV—COMMITTEE ON COM-
5 MERCE, SCIENCE, AND TRANS-
6 PORTATION
7 SEC. 40001. INVESTING IN COASTAL COMMUNITIES AND CLI-
8 MATE RESILIENCE.
9 (a) IN GENERAL.—In addition to amounts otherwise
10 available, there is appropriated to the National Oceanic
11 and Atmospheric Administration for fiscal year 2022, out
12 of any money in the Treasury not otherwise appropriated,
13 $2,600,000,000, to remain available until September 30,
14 2026, to provide funding through direct expenditure, con-
15 tracts, grants, cooperative agreements, or technical assist-
16 ance to coastal states (as defined in paragraph (4) of section
17 304 of the Coastal Zone Management Act of 1972 (16
18 U.S.C. 1453(4))), the District of Columbia, Tribal Govern-
19 ments, nonprofit organizations, local governments, and in-
20 stitutions of higher education (as defined in subsection (a)
21 of section 101 of the Higher Education Act of 1965 (20
22 U.S.C. 1001(a))), for the conservation, restoration, and pro-
23 tection of coastal and marine habitats, resources, Pacific
24 salmon and other marine fisheries, to enable coastal com-
25 munities to prepare for extreme storms and other changing
† HR 5376 EAS
573
1 climate conditions, and for projects that support natural
2 resources that sustain coastal and marine resource depend-
3 ent communities, marine fishery and marine mammal stock
4 assessments, and for related administrative expenses.
5 (b) TRIBAL GOVERNMENT DEFINED.—In this section,
6 the term ‘‘Tribal Government’’ means the recognized gov-
7 erning body of any Indian or Alaska Native tribe, band,
8 nation, pueblo, village, community, component band, or
9 component reservation, individually identified (including
10 parenthetically) in the list published most recently as of the
11 date of enactment of this subsection pursuant to section 104
12 of the Federally Recognized Indian Tribe List Act of 1994
13 (25 U.S.C. 5131).
14 SEC. 40002. FACILITIES OF THE NATIONAL OCEANIC AND
15 ATMOSPHERIC ADMINISTRATION AND NA-
16 TIONAL MARINE SANCTUARIES.
17 (a) NATIONAL OCEANIC AND ATMOSPHERIC ADMINIS-
18 TRATION FACILITIES.—In addition to amounts otherwise
19 available, there is appropriated to the National Oceanic
20 and Atmospheric Administration for fiscal year 2022, out
21 of any money in the Treasury not otherwise appropriated,
22 $150,000,000, to remain available until September 30,
23 2026, for the construction of new facilities, facilities in need
24 of replacement, piers, marine operations facilities, and fish-
25 eries laboratories.
† HR 5376 EAS
574
1 (b) NATIONAL MARINE SANCTUARIES FACILITIES.—In
2 addition to amounts otherwise available, there is appro-
3 priated to the National Oceanic and Atmospheric Adminis-
4 tration for fiscal year 2022, out of any money in the Treas-
5 ury not otherwise appropriated, $50,000,000, to remain
6 available until September 30, 2026, for the construction of
7 facilities to support the National Marine Sanctuary System
8 established under subsection (c) of section 301 of the Na-
9 tional Marine Sanctuaries Act (16 U.S.C. 1431(c)).
10 SEC. 40003. NOAA EFFICIENT AND EFFECTIVE REVIEWS.
11 In addition to amounts otherwise available, there is
12 appropriated to the National Oceanic and Atmospheric Ad-
13 ministration for fiscal year 2022, out of any money in the
14 Treasury not otherwise appropriated, $20,000,000, to re-
15 main available until September 30, 2026, to conduct more
16 efficient, accurate, and timely reviews for planning, permit-
17 ting and approval processes through the hiring and train-
18 ing of personnel, and the purchase of technical and sci-
19 entific services and new equipment, and to improve agency
20 transparency, accountability, and public engagement.
21 SEC. 40004. OCEANIC AND ATMOSPHERIC RESEARCH AND
22 FORECASTING FOR WEATHER AND CLIMATE.
23 (a) FORECASTING AND RESEARCH.—In addition to
24 amounts otherwise available, there is appropriated to the
25 National Oceanic and Atmospheric Administration for fis-
† HR 5376 EAS
575
1 cal year 2022, out of any money in the Treasury not other-
2 wise appropriated, $150,000,000, to remain available until
3 September 30, 2026, to accelerate advances and improve-
4 ments in research, observation systems, modeling, fore-
5 casting, assessments, and dissemination of information to
6 the public as it pertains to ocean and atmospheric processes
7 related to weather, coasts, oceans, and climate, and to carry
8 out section 102(a) of the Weather Research and Forecasting
9 Innovation Act of 2017 (15 U.S.C. 8512(a)), and for related
10 administrative expenses.
11 (b) RESEARCH GRANTS AND SCIENCE INFORMATION,
12 PRODUCTS, AND SERVICES.—In addition to amounts other-
13 wise available, there are appropriated to the National Oce-
14 anic and Atmospheric Administration for fiscal year 2022,
15 out of any money in the Treasury not otherwise appro-
16 priated, to remain available until September 30, 2026,
17 $50,000,000 for competitive grants to fund climate research
18 as it relates to weather, ocean, coastal, and atmospheric
19 processes and conditions, and impacts to marine species
20 and coastal habitat, and for related administrative ex-
21 penses.
22 SEC. 40005. COMPUTING CAPACITY AND RESEARCH FOR
23 WEATHER, OCEANS, AND CLIMATE.
24 In addition to amounts otherwise available, there is
25 appropriated to the National Oceanic and Atmospheric Ad-
† HR 5376 EAS
576
1 ministration for fiscal year 2022, out of any money in the
2 Treasury not otherwise appropriated, $190,000,000, to re-
3 main available until September 30, 2026, for the procure-
4 ment of additional high-performance computing, data proc-
5 essing capacity, data management, and storage assets, to
6 carry out section 204(a)(2) of the High-Performance Com-
7 puting Act of 1991 (15 U.S.C. 5524(a)(2)), and for trans-
8 action agreements authorized under section 301(d)(1)(A) of
9 the Weather Research and Forecasting Innovation Act of
10 2017 (15 U.S.C. 8531(d)(1)(A)), and for related adminis-
11 trative expenses.
12 SEC. 40006. ACQUISITION OF HURRICANE FORECASTING
13 AIRCRAFT.
14 In addition to amounts otherwise available, there is
15 appropriated to the National Oceanic and Atmospheric Ad-
16 ministration for fiscal year 2022, out of any money in the
17 Treasury not otherwise appropriated, $100,000,000, to re-
18 main available until September 30, 2026, for the acquisi-
19 tion of hurricane hunter aircraft under section 413(a) of
20 the Weather Research and Forecasting Innovation Act of
21 2017 (15 U.S.C. 8549(a)).
22 SEC. 40007. ALTERNATIVE FUEL AND LOW-EMISSION AVIA-
23 TION TECHNOLOGY PROGRAM.
24 (a) APPROPRIATION AND ESTABLISHMENT.—For pur-
25 poses of establishing a competitive grant program for eligi-
† HR 5376 EAS
577
1 ble entities to carry out projects located in the United States
2 that produce, transport, blend, or store sustainable aviation
3 fuel, or develop, demonstrate, or apply low-emission avia-
4 tion technologies, in addition to amounts otherwise avail-
5 able, there are appropriated to the Secretary for fiscal year
6 2022, out of any money in the Treasury not otherwise ap-
7 propriated, to remain available until September 30, 2026—
8 (1) $244,530,000 for projects relating to the pro-
9 duction, transportation, blending, or storage of sus-
10 tainable aviation fuel;
11 (2) $46,530,000 for projects relating to low-emis-
12 sion aviation technologies; and
13 (3) $5,940,000 to fund the award of grants under
14 this section, and oversight of the program, by the Sec-
15 retary.
16 (b) CONSIDERATIONS.—In carrying out subsection (a),
17 the Secretary shall consider, with respect to a proposed
18 project—
19 (1) the capacity for the eligible entity to increase
20 the domestic production and deployment of sustain-
21 able aviation fuel or the use of low-emission aviation
22 technologies among the United States commercial
23 aviation and aerospace industry;
24 (2) the projected greenhouse gas emissions from
25 such project, including emissions resulting from the
† HR 5376 EAS
578
1 development of the project, and the potential the
2 project has to reduce or displace, on a lifecycle basis,
3 United States greenhouse gas emissions associated
4 with air travel;
5 (3) the capacity to create new jobs and develop
6 supply chain partnerships in the United States;
7 (4) for projects related to the production of sus-
8 tainable aviation fuel, the projected lifecycle green-
9 house gas emissions benefits from the proposed project,
10 which shall include feedstock and fuel production and
11 potential direct and indirect greenhouse gas emissions
12 (including resulting from changes in land use); and
13 (5) the benefits of ensuring a diversity of feed-
14 stocks for sustainable aviation fuel, including the use
15 of waste carbon oxides and direct air capture.
16 (c) COST SHARE.—The Federal share of the cost of a
17 project carried out using grant funds under subsection (a)
18 shall be 75 percent of the total proposed cost of the project,
19 except that such Federal share shall increase to 90 percent
20 of the total proposed cost of the project if the eligible entity
21 is a small hub airport or nonhub airport, as such terms
22 are defined in section 47102 of title 49, United States Code.
23 (d) FUEL EMISSIONS REDUCTION TEST.—For pur-
24 poses of clause (ii) of subsection (e)(7)(E), the Secretary
25 shall, not later than 2 years after the date of enactment
† HR 5376 EAS
579
1 of this section, adopt at least 1 methodology for testing
2 lifecycle greenhouse gas emissions that meets the require-
3 ments of such clause.
4 (e) DEFINITIONS.—In this section:
5 (1) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
6 ty’’ means—
7 (A) a State or local government, including
8 the District of Columbia, other than an airport
9 sponsor;
10 (B) an air carrier;
11 (C) an airport sponsor;
12 (D) an accredited institution of higher edu-
13 cation;
14 (E) a research institution;
15 (F) a person or entity engaged in the pro-
16 duction, transportation, blending, or storage of
17 sustainable aviation fuel in the United States or
18 feedstocks in the United States that could be used
19 to produce sustainable aviation fuel;
20 (G) a person or entity engaged in the devel-
21 opment, demonstration, or application of low-
22 emission aviation technologies; or
23 (H) nonprofit entities or nonprofit con-
24 sortia with experience in sustainable aviation
† HR 5376 EAS
580
1 fuels, low-emission aviation technologies, or other
2 clean transportation research programs.
3 (2) FEEDSTOCK.—The term ‘‘feedstock’’ means
4 sources of hydrogen and carbon not originating from
5 unrefined or refined petrochemicals.
6 (3) INDUCED LAND-USE CHANGE VALUES.—The
7 term ‘‘induced land-use change values’’ means the
8 greenhouse gas emissions resulting from the conver-
9 sion of land to the production of feedstocks and from
10 the conversion of other land due to the displacement
11 of crops or animals for which the original land was
12 previously used.
13 (4) LIFECYCLE GREENHOUSE GAS EMISSIONS.—
14 The term ‘‘lifecycle greenhouse gas emissions’’ means
15 the combined greenhouse gas emissions from feedstock
16 production, collection of feedstock, transportation of
17 feedstock to fuel production facilities, conversion of
18 feedstock to fuel, transportation and distribution of
19 fuel, and fuel combustion in an aircraft engine, as
20 well as from induced land-use change values.
21 (5) LOW-EMISSION AVIATION TECHNOLOGIES.—
22 The term ‘‘low-emission aviation technologies’’ means
23 technologies, produced in the United States, that sig-
24 nificantly—
25 (A) improve aircraft fuel efficiency;
† HR 5376 EAS
581
1 (B) increase utilization of sustainable avia-
2 tion fuel; or
3 (C) reduce greenhouse gas emissions pro-
4 duced during operation of civil aircraft.
5 (6) SECRETARY.—The term ‘‘Secretary’’ means
6 the Secretary of Transportation.
7 (7) SUSTAINABLE AVIATION FUEL.—The term
8 ‘‘sustainable aviation fuel’’ means liquid fuel, pro-
9 duced in the United States, that—
10 (A) consists of synthesized hydrocarbons;
11 (B) meets the requirements of—
12 (i) ASTM International Standard
13 D7566; or
14 (ii) the co-processing provisions of
15 ASTM International Standard D1655,
16 Annex A1 (or such successor standard);
17 (C) is derived from biomass (in a similar
18 manner as such term is defined in section
19 45K(c)(3) of the Internal Revenue Code of 1986),
20 waste streams, renewable energy sources, or gas-
21 eous carbon oxides;
22 (D) is not derived from palm fatty acid dis-
23 tillates; and
24 (E) achieves at least a 50 percent lifecycle
25 greenhouse gas emissions reduction in compari-
† HR 5376 EAS
582
1 son with petroleum-based jet fuel, as determined
2 by a test that shows—
3 (i) the fuel production pathway
4 achieves at least a 50 percent reduction of
5 the aggregate attributional core lifecycle
6 emissions and the induced land-use change
7 values under a lifecycle methodology for sus-
8 tainable aviation fuels similar to that
9 adopted by the International Civil Aviation
10 Organization with the agreement of the
11 United States; or
12 (ii) the fuel production pathway
13 achieves at least a 50 percent reduction of
14 the aggregate attributional core lifecycle
15 greenhouse gas emissions values and the in-
16 duced land-use change values under another
17 methodology that the Secretary determines
18 is—
19 (I) reflective of the latest scientific
20 understanding of lifecycle greenhouse
21 gas emissions; and
22 (II) as stringent as the require-
23 ment under clause (i).
† HR 5376 EAS
583
1 TITLE V—COMMITTEE ON EN-
2 ERGY AND NATURAL RE-
3 SOURCES
4 Subtitle A—Energy
5 PART 1—GENERAL PROVISIONS
6 SEC. 50111. DEFINITIONS.
7 In this subtitle:
8 (1) GREENHOUSE GAS.—The term ‘‘greenhouse
9 gas’’ has the meaning given the term in section
10 1610(a) of the Energy Policy Act of 1992 (42 U.S.C.
11 13389(a)).
12 (2) SECRETARY.—The term ‘‘Secretary’’ means
13 the Secretary of Energy.
14 (3) STATE.—The term ‘‘State’’ means a State,
15 the District of Columbia, and a United States Insular
16 Area (as that term is defined in section 50211).
17 (4) STATE ENERGY OFFICE.—The term ‘‘State
18 energy office’’ has the meaning given the term in sec-
19 tion 124(a) of the Energy Policy Act of 2005 (42
20 U.S.C. 15821(a)).
21 (5) STATE ENERGY PROGRAM.—The term ‘‘State
22 Energy Program’’ means the State Energy Program
23 established pursuant to part D of title III of the En-
24 ergy Policy and Conservation Act (42 U.S.C. 6321
25 through 6326).
† HR 5376 EAS
584
1 PART 2—RESIDENTIAL EFFICIENCY AND
2 ELECTRIFICATION REBATES
3 SEC. 50121. HOME ENERGY PERFORMANCE-BASED, WHOLE-
4 HOUSE REBATES.
5 (a) APPROPRIATION.—
6 (1) IN GENERAL.—In addition to amounts other-
7 wise available, there is appropriated to the Secretary
8 for fiscal year 2022, out of any money in the Treas-
9 ury not otherwise appropriated, $4,300,000,000, to re-
10 main available through September 30, 2031, to carry
11 out a program to award grants to State energy offices
12 to develop and implement a HOMES rebate program.
13 (2) ALLOCATION OF FUNDS.—
14 (A) IN GENERAL.—The Secretary shall re-
15 serve funds made available under paragraph (1)
16 for each State energy office—
17 (i) in accordance with the allocation
18 formula for the State Energy Program in
19 effect on January 1, 2022; and
20 (ii) to be distributed to a State energy
21 office if the application of the State energy
22 office under subsection (b) is approved.
23 (B) ADDITIONAL FUNDS.—Not earlier than
24 2 years after the date of enactment of this Act,
25 any money reserved under subparagraph (A) but
26 not distributed under clause (ii) of that subpara-
† HR 5376 EAS
585
1 graph shall be redistributed to the State energy
2 offices operating a HOMES rebate program
3 using a grant received under this section in pro-
4 portion to the amount distributed to those State
5 energy offices under subparagraph (A)(ii).
6 (3) ADMINISTRATIVE EXPENSES.—Of the funds
7 made available under paragraph (1), the Secretary
8 shall use not more than 3 percent for—
9 (A) administrative purposes; and
10 (B) providing technical assistance relating
11 to activities carried out under this section.
12 (b) APPLICATION.—A State energy office seeking a
13 grant under this section shall submit to the Secretary an
14 application that includes a plan to implement a HOMES
15 rebate program, including a plan—
16 (1) to use procedures, as approved by the Sec-
17 retary, for determining the reductions in home energy
18 use resulting from the implementation of a home en-
19 ergy efficiency retrofit that are calibrated to historical
20 energy usage for a home consistent with BPI 2400,
21 for purposes of modeled performance home rebates;
22 (2) to use open-source advanced measurement
23 and verification software, as approved by the Sec-
24 retary, for determining and documenting the monthly
25 and hourly (if available) weather-normalized energy
† HR 5376 EAS
586
1 use of a home before and after the implementation of
2 a home energy efficiency retrofit, for purposes of
3 measured performance home rebates;
4 (3) to value savings based on time, location, or
5 greenhouse gas emissions;
6 (4) for quality monitoring to ensure that each
7 home energy efficiency retrofit for which a rebate is
8 provided is documented in a certificate that—
9 (A) is provided by the contractor and cer-
10 tified by a third party to the homeowner; and
11 (B) details the work performed, the equip-
12 ment and materials installed, and the projected
13 energy savings or energy generation to support
14 accurate valuation of the retrofit;
15 (5) to provide a contractor performing a home
16 energy efficiency retrofit or an aggregator who has the
17 right to claim a rebate $200 for each home located in
18 a disadvantaged community that receives a home en-
19 ergy efficiency retrofit for which a rebate is provided
20 under the program; and
21 (6) to ensure that a homeowner or aggregator
22 does not receive a rebate for the same upgrade through
23 both a HOMES rebate program and any other Fed-
24 eral grant or rebate program, pursuant to subsection
25 (c)(7).
† HR 5376 EAS
587
1 (c) HOMES REBATE PROGRAM.—
2 (1) IN GENERAL.—A HOMES rebate program
3 carried out by a State energy office receiving a grant
4 pursuant to this section shall provide rebates to home-
5 owners and aggregators for whole-house energy saving
6 retrofits begun on or after the date of enactment of
7 this Act and completed by not later than September
8 30, 2031.
9 (2) AMOUNT OF REBATE.—Subject to paragraph
10 (3), under a HOMES rebate program, the amount of
11 a rebate shall not exceed—
12 (A) for individuals and aggregators car-
13 rying out energy efficiency upgrades of single-
14 family homes—
15 (i) in the case of a retrofit that
16 achieves modeled energy system savings of
17 not less than 20 percent but less than 35
18 percent, the lesser of—
19 (I) $2,000; and
20 (II) 50 percent of the project cost;
21 (ii) in the case of a retrofit that
22 achieves modeled energy system savings of
23 not less than 35 percent, the lesser of—
24 (I) $4,000; and
† HR 5376 EAS
588
1 (II) 50 percent of the project cost;
2 and
3 (iii) for measured energy savings, in
4 the case of a home or portfolio of homes that
5 achieves energy savings of not less than 15
6 percent—
7 (I) a payment rate per kilowatt
8 hour saved, or kilowatt hour-equivalent
9 saved, equal to $2,000 for a 20 percent
10 reduction of energy use for the average
11 home in the State; or
12 (II) 50 percent of the project cost;
13 (B) for multifamily building owners and
14 aggregators carrying out energy efficiency up-
15 grades of multifamily buildings—
16 (i) in the case of a retrofit that
17 achieves modeled energy system savings of
18 not less than 20 percent but less than 35
19 percent, $2,000 per dwelling unit, with a
20 maximum of $200,000 per multifamily
21 building;
22 (ii) in the case of a retrofit that
23 achieves modeled energy system savings of
24 not less than 35 percent, $4,000 per dwell-
† HR 5376 EAS
589
1 ing unit, with a maximum of $400,000 per
2 multifamily building; or
3 (iii) for measured energy savings, in
4 the case of a multifamily building or port-
5 folio of multifamily buildings that achieves
6 energy savings of not less than 15 percent—
7 (I) a payment rate per kilowatt
8 hour saved, or kilowatt hour-equivalent
9 saved, equal to $2,000 for a 20 percent
10 reduction of energy use per dwelling
11 unit for the average multifamily build-
12 ing in the State; or
13 (II) 50 percent of the project cost;
14 and
15 (C) for individuals and aggregators car-
16 rying out energy efficiency upgrades of a single-
17 family home occupied by a low- or moderate-in-
18 come household or a multifamily building not
19 less than 50 percent of the dwelling units of
20 which are occupied by low- or moderate-income
21 households—
22 (i) in the case of a retrofit that
23 achieves modeled energy system savings of
24 not less than 20 percent but less than 35
25 percent, the lesser of—
† HR 5376 EAS
590
1 (I) $4,000 per single-family home
2 or dwelling unit; and
3 (II) 80 percent of the project cost;
4 (ii) in the case of a retrofit that
5 achieves modeled energy system savings of
6 not less than 35 percent, the lesser of—
7 (I) $8,000 per single-family home
8 or dwelling unit; and
9 (II) 80 percent of the project cost;
10 and
11 (iii) for measured energy savings, in
12 the case of a single-family home, multi-
13 family building, or portfolio of single-fam-
14 ily homes or multifamily buildings that
15 achieves energy savings of not less than 15
16 percent—
17 (I) a payment rate per kilowatt
18 hour saved, or kilowatt hour-equivalent
19 saved, equal to $4,000 for a 20 percent
20 reduction of energy use per single-fam-
21 ily home or dwelling unit, as applica-
22 ble, for the average single-family home
23 or multifamily building in the State;
24 or
25 (II) 80 percent of the project cost.
† HR 5376 EAS
591
1 (3) REBATES TO LOW- OR MODERATE-INCOME
2 HOUSEHOLDS.—On approval from the Secretary, not-
3 withstanding paragraph (2), a State energy office
4 carrying out a HOMES rebate program using a
5 grant awarded pursuant to this section may increase
6 rebate amounts for low- or moderate-income house-
7 holds.
8 (4) USE OF FUNDS.—A State energy office that
9 receives a grant pursuant to this section may use not
10 more than 20 percent of the grant amount for plan-
11 ning, administration, or technical assistance related
12 to a HOMES rebate program.
13 (5) DATA ACCESS GUIDELINES.—The Secretary
14 shall develop and publish guidelines for States relat-
15 ing to residential electric and natural gas energy
16 data sharing.
17 (6) EXEMPTION.—Activities carried out by a
18 State energy office using a grant awarded pursuant
19 to this section shall not be subject to the expenditure
20 prohibitions and limitations described in section
21 420.18 of title 10, Code of Federal Regulations.
22 (7) PROHIBITION ON COMBINING REBATES.—A
23 rebate provided by a State energy office under a
24 HOMES rebate program may not be combined with
25 any other Federal grant or rebate, including a rebate
† HR 5376 EAS
592
1 provided under a high-efficiency electric home rebate
2 program (as defined in section 50122(d)), for the
3 same single upgrade.
4 (d) DEFINITIONS.—In this section:
5 (1) DISADVANTAGED COMMUNITY.—The term
6 ‘‘disadvantaged community’’ means a community
7 that the Secretary determines, based on appropriate
8 data, indices, and screening tools, is economically, so-
9 cially, or environmentally disadvantaged.
10 (2) HOMES REBATE PROGRAM.—The term
11 ‘‘HOMES rebate program’’ means a Home Owner
12 Managing Energy Savings rebate program established
13 by a State energy office as part of an approved State
14 energy conservation plan under the State Energy
15 Program.
16 (3) LOW- OR MODERATE-INCOME HOUSEHOLD.—
17 The term ‘‘low- or moderate-income household’’ means
18 an individual or family the total annual income of
19 which is less than 80 percent of the median income
20 of the area in which the individual or family resides,
21 as reported by the Department of Housing and Urban
22 Development, including an individual or family that
23 has demonstrated eligibility for another Federal pro-
24 gram with income restrictions equal to or below 80
25 percent of area median income.
† HR 5376 EAS
593
1 SEC. 50122. HIGH-EFFICIENCY ELECTRIC HOME REBATE
2 PROGRAM.
3 (a) APPROPRIATIONS.—
4 (1) FUNDS TO STATE ENERGY OFFICES AND IN-
5 DIAN TRIBES.—In addition to amounts otherwise
6 available, there is appropriated to the Secretary for
7 fiscal year 2022, out of any money in the Treasury
8 not otherwise appropriated, to carry out a program—
9 (A) to award grants to State energy offices
10 to develop and implement a high-efficiency elec-
11 tric home rebate program in accordance with
12 subsection (c), $4,275,000,000, to remain avail-
13 able through September 30, 2031; and
14 (B) to award grants to Indian Tribes to de-
15 velop and implement a high-efficiency electric
16 home rebate program in accordance with sub-
17 section (c), $225,000,000, to remain available
18 through September 30, 2031.
19 (2) ALLOCATION OF FUNDS.—
20 (A) STATE ENERGY OFFICES.—The Sec-
21 retary shall reserve funds made available under
22 paragraph (1)(A) for each State energy office—
23 (i) in accordance with the allocation
24 formula for the State Energy Program in
25 effect on January 1, 2022; and
† HR 5376 EAS
594
1 (ii) to be distributed to a State energy
2 office if the application of the State energy
3 office under subsection (b) is approved.
4 (B) INDIAN TRIBES.—The Secretary shall
5 reserve funds made available under paragraph
6 (1)(B)—
7 (i) in a manner determined appro-
8 priate by the Secretary; and
9 (ii) to be distributed to an Indian
10 Tribe if the application of the Indian Tribe
11 under subsection (b) is approved.
12 (C) ADDITIONAL FUNDS.—Not earlier than
13 2 years after the date of enactment of this Act,
14 any money reserved under—
15 (i) subparagraph (A) but not distrib-
16 uted under clause (ii) of that subparagraph
17 shall be redistributed to the State energy of-
18 fices operating a high-efficiency electric
19 home rebate program in proportion to the
20 amount distributed to those State energy of-
21 fices under that clause; and
22 (ii) subparagraph (B) but not distrib-
23 uted under clause (ii) of that subparagraph
24 shall be redistributed to the Indian Tribes
25 operating a high-efficiency electric home re-
† HR 5376 EAS
595
1 bate program in proportion to the amount
2 distributed to those Indian Tribes under
3 that clause.
4 (3) ADMINISTRATIVE EXPENSES.—Of the funds
5 made available under paragraph (1), the Secretary
6 shall use not more than 3 percent for—
7 (A) administrative purposes; and
8 (B) providing technical assistance relating
9 to activities carried out under this section.
10 (b) APPLICATION.—A State energy office or Indian
11 Tribe seeking a grant under the program shall submit to
12 the Secretary an application that includes a plan to imple-
13 ment a high-efficiency electric home rebate program, includ-
14 ing—
15 (1) a plan to verify the income eligibility of eli-
16 gible entities seeking a rebate for a qualified elec-
17 trification project;
18 (2) a plan to allow rebates for qualified elec-
19 trification projects at the point of sale in a manner
20 that ensures that the income eligibility of an eligible
21 entity seeking a rebate may be verified at the point
22 of sale;
23 (3) a plan to ensure that an eligible entity does
24 not receive a rebate for the same qualified electrifica-
25 tion project through both a high-efficiency electric
† HR 5376 EAS
596
1 home rebate program and any other Federal grant or
2 rebate program, pursuant to subsection (c)(8); and
3 (4) any additional information that the Sec-
4 retary may require.
5 (c) HIGH-EFFICIENCY ELECTRIC HOME REBATE PRO-
6 GRAM.—
7 (1) IN GENERAL.—Under the program, the Sec-
8 retary shall award grants to State energy offices and
9 Indian Tribes to establish a high-efficiency electric
10 home rebate program under which rebates shall be
11 provided to eligible entities for qualified electrifica-
12 tion projects.
13 (2) GUIDELINES.—The Secretary shall prescribe
14 guidelines for high-efficiency electric home rebate pro-
15 grams, including guidelines for providing point of
16 sale rebates in a manner consistent with the income
17 eligibility requirements under this section.
18 (3) AMOUNT OF REBATE.—
19 (A) APPLIANCE UPGRADES.—The amount of
20 a rebate provided under a high-efficiency electric
21 home rebate program for the purchase of an ap-
22 pliance under a qualified electrification project
23 shall be—
24 (i) not more than $1,750 for a heat
25 pump water heater;
† HR 5376 EAS
597
1 (ii) not more than $8,000 for a heat
2 pump for space heating or cooling; and
3 (iii) not more than $840 for—
4 (I) an electric stove, cooktop,
5 range, or oven; or
6 (II) an electric heat pump clothes
7 dryer.
8 (B) NONAPPLIANCE UPGRADES.—The
9 amount of a rebate provided under a high-effi-
10 ciency electric home rebate program for the pur-
11 chase of a nonappliance upgrade under a quali-
12 fied electrification project shall be—
13 (i) not more than $4,000 for an electric
14 load service center upgrade;
15 (ii) not more than $1,600 for insula-
16 tion, air sealing, and ventilation; and
17 (iii) not more than $2,500 for electric
18 wiring.
19 (C) MAXIMUM REBATE.—An eligible entity
20 receiving multiple rebates under this section may
21 receive not more than a total of $14,000 in re-
22 bates.
23 (4) LIMITATIONS.—A rebate provided using
24 funding under this section shall not exceed—
† HR 5376 EAS
598
1 (A) in the case of an eligible entity de-
2 scribed in subsection (d)(1)(A)—
3 (i) 50 percent of the cost of the quali-
4 fied electrification project for a household
5 the annual income of which is not less than
6 80 percent and not greater than 150 percent
7 of the area median income; and
8 (ii) 100 percent of the cost of the quali-
9 fied electrification project for a household
10 the annual income of which is less than 80
11 percent of the area median income;
12 (B) in the case of an eligible entity de-
13 scribed in subsection (d)(1)(B)—
14 (i) 50 percent of the cost of the quali-
15 fied electrification project for a multifamily
16 building not less than 50 percent of the resi-
17 dents of which are households the annual
18 income of which is not less than 80 percent
19 and not greater than 150 percent of the
20 area median income; and
21 (ii) 100 percent of the cost of the quali-
22 fied electrification project for a multifamily
23 building not less than 50 percent of the resi-
24 dents of which are households the annual
† HR 5376 EAS
599
1 income of which is less than 80 percent of
2 the area median income; or
3 (C) in the case of an eligible entity de-
4 scribed in subsection (d)(1)(C)—
5 (i) 50 percent of the cost of the quali-
6 fied electrification project for a household—
7 (I) on behalf of which the eligible
8 entity is working; and
9 (II) the annual income of which is
10 not less than 80 percent and not great-
11 er than 150 percent of the area median
12 income; and
13 (ii) 100 percent of the cost of the quali-
14 fied electrification project for a household—
15 (I) on behalf of which the eligible
16 entity is working; and
17 (II) the annual income of which is
18 less than 80 percent of the area median
19 income.
20 (5) AMOUNT FOR INSTALLATION OF UP-
21 GRADES.—
22 (A) IN GENERAL.—In the case of an eligible
23 entity described in subsection (d)(1)(C) that re-
24 ceives a rebate under the program and performs
25 the installation of the applicable qualified elec-
† HR 5376 EAS
600
1 trification project, a State energy office or In-
2 dian Tribe shall provide to that eligible entity,
3 in addition to the rebate, an amount that—
4 (i) does not exceed $500; and
5 (ii) is commensurate with the scale of
6 the upgrades installed as part of the quali-
7 fied electrification project, as determined by
8 the Secretary.
9 (B) TREATMENT.—An amount received
10 under subparagraph (A) by an eligible entity de-
11 scribed in that subparagraph shall not be subject
12 to the requirement under paragraph (6).
13 (6) REQUIREMENT.—An eligible entity described
14 in subparagraph (C) of subsection (d)(1) shall dis-
15 count the amount of a rebate received for a qualified
16 electrification project from any amount charged by
17 that eligible entity to the eligible entity described in
18 subparagraph (A) or (B) of that subsection on behalf
19 of which the qualified electrification project is carried
20 out.
21 (7) EXEMPTION.—Activities carried out by a
22 State energy office using a grant provided under the
23 program shall not be subject to the expenditure prohi-
24 bitions and limitations described in section 420.18 of
25 title 10, Code of Federal Regulations.
† HR 5376 EAS
601
1 (8) PROHIBITION ON COMBINING REBATES.—A
2 rebate provided by a State energy office or Indian
3 Tribe under a high-efficiency electric home rebate pro-
4 gram may not be combined with any other Federal
5 grant or rebate, including a rebate provided under a
6 HOMES rebate program (as defined in section
7 50121(d)), for the same qualified electrification
8 project.
9 (9) ADMINISTRATIVE COSTS.—A State energy of-
10 fice or Indian Tribe that receives a grant under the
11 program shall use not more than 20 percent of the
12 grant amount for planning, administration, or tech-
13 nical assistance relating to a high-efficiency electric
14 home rebate program.
15 (d) DEFINITIONS.—In this section:
16 (1) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
17 ty’’ means—
18 (A) a low- or moderate-income household;
19 (B) an individual or entity that owns a
20 multifamily building not less than 50 percent of
21 the residents of which are low- or moderate-in-
22 come households; and
23 (C) a governmental, commercial, or non-
24 profit entity, as determined by the Secretary,
25 carrying out a qualified electrification project on
† HR 5376 EAS
602
1 behalf of an entity described in subparagraph
2 (A) or (B).
3 (2) HIGH-EFFICIENCY ELECTRIC HOME REBATE
4 PROGRAM.—The term ‘‘high-efficiency electric home
5 rebate program’’ means a rebate program carried out
6 by a State energy office or Indian Tribe pursuant to
7 subsection (c) using a grant received under the pro-
8 gram.
9 (3) INDIAN TRIBE.—The term ‘‘Indian Tribe’’
10 has the meaning given the term in section 4 of the In-
11 dian Self-Determination and Education Assistance
12 Act (25 U.S.C. 5304).
13 (4) LOW- OR MODERATE-INCOME HOUSEHOLD.—
14 The term ‘‘low- or moderate-income household’’ means
15 an individual or family the total annual income of
16 which is less than 150 percent of the median income
17 of the area in which the individual or family resides,
18 as reported by the Department of Housing and Urban
19 Development, including an individual or family that
20 has demonstrated eligibility for another Federal pro-
21 gram with income restrictions equal to or below 150
22 percent of area median income.
23 (5) PROGRAM.—The term ‘‘program’’ means the
24 program carried out by the Secretary under sub-
25 section (a)(1).
† HR 5376 EAS
603
1 (6) QUALIFIED ELECTRIFICATION PROJECT.—
2 (A) IN GENERAL.—The term ‘‘qualified elec-
3 trification project’’ means a project that—
4 (i) includes the purchase and installa-
5 tion of—
6 (I) an electric heat pump water
7 heater;
8 (II) an electric heat pump for
9 space heating and cooling;
10 (III) an electric stove, cooktop,
11 range, or oven;
12 (IV) an electric heat pump clothes
13 dryer;
14 (V) an electric load service center;
15 (VI) insulation;
16 (VII) air sealing and materials to
17 improve ventilation; or
18 (VIII) electric wiring;
19 (ii) with respect to any appliance de-
20 scribed in clause (i), the purchase of which
21 is carried out—
22 (I) as part of new construction;
23 (II) to replace a nonelectric appli-
24 ance; or
† HR 5376 EAS
604
1 (III) as a first-time purchase with
2 respect to that appliance; and
3 (iii) is carried out at, or relating to, a
4 single-family home or multifamily building,
5 as applicable and defined by the Secretary.
6 (B) EXCLUSIONS.—The term ‘‘qualified
7 electrification project’’ does not include any
8 project with respect to which the appliance, sys-
9 tem, equipment, infrastructure, component, or
10 other item described in subclauses (I) through
11 (VIII) of subparagraph (A)(i) is not certified
12 under the Energy Star program established by
13 section 324A of the Energy Policy and Conserva-
14 tion Act (42 U.S.C. 6294a), if applicable.
15 SEC. 50123. STATE-BASED HOME ENERGY EFFICIENCY CON-
16 TRACTOR TRAINING GRANTS.
17 (a) APPROPRIATION.—In addition to amounts other-
18 wise available, there is appropriated to the Secretary for
19 fiscal year 2022, out of any money in the Treasury not
20 otherwise appropriated, $200,000,000, to remain available
21 through September 30, 2031, to carry out a program to pro-
22 vide financial assistance to States to develop and imple-
23 ment a State program described in section 362(d)(13) of
24 the Energy Policy and Conservation Act (42 U.S.C.
25 6322(d)(13)), which shall provide training and education
† HR 5376 EAS
605
1 to contractors involved in the installation of home energy
2 efficiency and electrification improvements, including im-
3 provements eligible for rebates under a HOMES rebate pro-
4 gram (as defined in section 50121(d)) or a high-efficiency
5 electric home rebate program (as defined in section
6 50122(d)), as part of an approved State energy conserva-
7 tion plan under the State Energy Program.
8 (b) USE OF FUNDS.—A State may use amounts re-
9 ceived under subsection (a)—
10 (1) to reduce the cost of training contractor em-
11 ployees;
12 (2) to provide testing and certification of con-
13 tractors trained and educated under a State program
14 developed and implemented pursuant to subsection
15 (a); and
16 (3) to partner with nonprofit organizations to
17 develop and implement a State program pursuant to
18 subsection (a).
19 (c) ADMINISTRATIVE EXPENSES.—Of the amounts re-
20 ceived by a State under subsection (a), a State shall use
21 not more than 10 percent for administrative expenses asso-
22 ciated with developing and implementing a State program
23 pursuant to that subsection.
† HR 5376 EAS
606
1 PART 3—BUILDING EFFICIENCY AND RESILIENCE
2 SEC. 50131. ASSISTANCE FOR LATEST AND ZERO BUILDING
3 ENERGY CODE ADOPTION.
4 (a) APPROPRIATION.—In addition to amounts other-
5 wise available, there is appropriated to the Secretary for
6 fiscal year 2022, out of any money in the Treasury not
7 otherwise appropriated—
8 (1) $330,000,000, to remain available through
9 September 30, 2029, to carry out activities under
10 part D of title III of the Energy Policy and Con-
11 servation Act (42 U.S.C. 6321 through 6326) in ac-
12 cordance with subsection (b); and
13 (2) $670,000,000, to remain available through
14 September 30, 2029, to carry out activities under
15 part D of title III of the Energy Policy and Con-
16 servation Act (42 U.S.C. 6321 through 6326) in ac-
17 cordance with subsection (c).
18 (b) LATEST BUILDING ENERGY CODE.—The Secretary
19 shall use funds made available under subsection (a)(1) for
20 grants to assist States, and units of local government that
21 have authority to adopt building codes—
22 (1) to adopt—
23 (A) a building energy code (or codes) for
24 residential buildings that meets or exceeds the
25 2021 International Energy Conservation Code,
26 or achieves equivalent or greater energy savings;
† HR 5376 EAS
607
1 (B) a building energy code (or codes) for
2 commercial buildings that meets or exceeds the
3 ANSI/ASHRAE/IES Standard 90.1–2019, or
4 achieves equivalent or greater energy savings; or
5 (C) any combination of building energy
6 codes described in subparagraph (A) or (B); and
7 (2) to implement a plan for the jurisdiction to
8 achieve full compliance with any building energy code
9 adopted under paragraph (1) in new and renovated
10 residential or commercial buildings, as applicable,
11 which plan shall include active training and enforce-
12 ment programs and measurement of the rate of com-
13 pliance each year.
14 (c) ZERO ENERGY CODE.—The Secretary shall use
15 funds made available under subsection (a)(2) for grants to
16 assist States, and units of local government that have au-
17 thority to adopt building codes—
18 (1) to adopt a building energy code (or codes) for
19 residential and commercial buildings that meets or
20 exceeds the zero energy provisions in the 2021 Inter-
21 national Energy Conservation Code or an equivalent
22 stretch code; and
23 (2) to implement a plan for the jurisdiction to
24 achieve full compliance with any building energy code
25 adopted under paragraph (1) in new and renovated
† HR 5376 EAS
608
1 residential and commercial buildings, which plan
2 shall include active training and enforcement pro-
3 grams and measurement of the rate of compliance
4 each year.
5 (d) STATE MATCH.—The State cost share requirement
6 under the item relating to ‘‘Department of Energy—Energy
7 Conservation’’ in title II of the Department of the Interior
8 and Related Agencies Appropriations Act, 1985 (42 U.S.C.
9 6323a; 98 Stat. 1861), shall not apply to assistance pro-
10 vided under this section.
11 (e) ADMINISTRATIVE COSTS.—Of the amounts made
12 available under this section, the Secretary shall reserve not
13 more than 5 percent for administrative costs necessary to
14 carry out this section.
15 PART 4—DOE LOAN AND GRANT PROGRAMS
16 SEC. 50141. FUNDING FOR DEPARTMENT OF ENERGY LOAN
17 PROGRAMS OFFICE.
18 (a) COMMITMENT AUTHORITY.—In addition to com-
19 mitment authority otherwise available and previously pro-
20 vided, the Secretary may make commitments to guarantee
21 loans for eligible projects under section 1703 of the Energy
22 Policy Act of 2005 (42 U.S.C. 16513), up to a total prin-
23 cipal amount of $40,000,000,000, to remain available
24 through September 30, 2026.
† HR 5376 EAS
609
1 (b) APPROPRIATION.—In addition to amounts other-
2 wise available and previously provided, there is appro-
3 priated to the Secretary for fiscal year 2022, out of any
4 money in the Treasury not otherwise appropriated,
5 $3,600,000,000, to remain available through September 30,
6 2026, for the costs of guarantees made under section 1703
7 of the Energy Policy Act of 2005 (42 U.S.C. 16513), using
8 the loan guarantee authority provided under subsection (a)
9 of this section.
10 (c) ADMINISTRATIVE EXPENSES.—Of the amount
11 made available under subsection (b), the Secretary shall re-
12 serve not more than 3 percent for administrative expenses
13 to carry out title XVII of the Energy Policy Act of 2005
14 and for carrying out section 1702(h)(3) of such Act (42
15 U.S.C. 16512(h)(3)).
16 (d) LIMITATIONS.—
17 (1) CERTIFICATION.—None of the amounts made
18 available under this section for loan guarantees shall
19 be available for any project unless the President has
20 certified in advance in writing that the loan guar-
21 antee and the project comply with the provisions
22 under this section.
23 (2) DENIAL OF DOUBLE BENEFIT.—Except as
24 provided in paragraph (3), none of the amounts made
25 available under this section for loan guarantees shall
† HR 5376 EAS
610
1 be available for commitments to guarantee loans for
2 any projects under which funds, personnel, or prop-
3 erty (tangible or intangible) of any Federal agency,
4 instrumentality, personnel, or affiliated entity are ex-
5 pected to be used (directly or indirectly) through ac-
6 quisitions, contracts, demonstrations, exchanges,
7 grants, incentives, leases, procurements, sales, other
8 transaction authority, or other arrangements to sup-
9 port the project or to obtain goods or services from the
10 project.
11 (3) EXCEPTION.—Paragraph (2) shall not pre-
12 clude the use of the loan guarantee authority provided
13 under this section for commitments to guarantee loans
14 for—
15 (A) projects benefitting from otherwise al-
16 lowable Federal tax benefits;
17 (B) projects benefitting from being located
18 on Federal land pursuant to a lease or right-of-
19 way agreement for which all consideration for
20 all uses is—
21 (i) paid exclusively in cash;
22 (ii) deposited in the Treasury as offset-
23 ting receipts; and
24 (iii) equal to the fair market value;
† HR 5376 EAS
611
1 (C) projects benefitting from the Federal in-
2 surance program under section 170 of the Atomic
3 Energy Act of 1954 (42 U.S.C. 2210); or
4 (D) electric generation projects using trans-
5 mission facilities owned or operated by a Federal
6 Power Marketing Administration or the Ten-
7 nessee Valley Authority that have been author-
8 ized, approved, and financed independent of the
9 project receiving the guarantee.
10 (e) GUARANTEE.—Section 1701(4)(A) of the Energy
11 Policy Act of 2005 (42 U.S.C. 16511(4)(A)) is amended by
12 inserting ‘‘, except that a loan guarantee may guarantee
13 any debt obligation of a non-Federal borrower to any Eligi-
14 ble Lender (as defined in section 609.2 of title 10, Code of
15 Federal Regulations)’’ before the period at the end.
16 (f) SOURCE OF PAYMENTS.—Section 1702(b) of the
17 Energy Policy Act of 2005 (42 U.S.C. 16512(b)(2)) is
18 amended by adding at the end the following:
19 ‘‘(3) SOURCE OF PAYMENTS.—The source of a
20 payment received from a borrower under subpara-
21 graph (A) or (B) of paragraph (2) may not be a loan
22 or other debt obligation that is made or guaranteed
23 by the Federal Government.’’.
† HR 5376 EAS
612
1 SEC. 50142. ADVANCED TECHNOLOGY VEHICLE MANUFAC-
2 TURING.
3 (a) APPROPRIATION.—In addition to amounts other-
4 wise available, there is appropriated to the Secretary for
5 fiscal year 2022, out of any money in the Treasury not
6 otherwise appropriated, $3,000,000,000, to remain avail-
7 able through September 30, 2028, for the costs of providing
8 direct loans under section 136(d) of the Energy Independ-
9 ence and Security Act of 2007 (42 U.S.C. 17013(d)): Pro-
10 vided, That funds appropriated by this section may be used
11 for the costs of providing direct loans for reequipping, ex-
12 panding, or establishing a manufacturing facility in the
13 United States to produce, or for engineering integration
14 performed in the United States of, advanced technology ve-
15 hicles described in subparagraph (C), (D), (E), or (F) of
16 section 136(a)(1) of such Act (42 U.S.C. 17013(a)(1)) only
17 if such advanced technology vehicles emit, under any pos-
18 sible operational mode or condition, low or zero exhaust
19 emissions of greenhouse gases.
20 (b) ADMINISTRATIVE COSTS.—The Secretary shall re-
21 serve not more than $25,000,000 of amounts made available
22 under subsection (a) for administrative costs of providing
23 loans as described in subsection (a).
24 (c) ELIMINATION OF LOAN PROGRAM CAP.—Section
25 136(d)(1) of the Energy Independence and Security Act of
† HR 5376 EAS
613
1 2007 (42 U.S.C. 17013(d)(1)) is amended by striking ‘‘a
2 total of not more than $25,000,000,000 in’’.
3 SEC. 50143. DOMESTIC MANUFACTURING CONVERSION
4 GRANTS.
5 (a) APPROPRIATION.—In addition to amounts other-
6 wise available, there is appropriated to the Secretary for
7 fiscal year 2022, out of any money in the Treasury not
8 otherwise appropriated, $2,000,000,000, to remain avail-
9 able through September 30, 2031, to provide grants for do-
10 mestic production of efficient hybrid, plug-in electric hy-
11 brid, plug-in electric drive, and hydrogen fuel cell electric
12 vehicles, in accordance with section 712 of the Energy Pol-
13 icy Act of 2005 (42 U.S.C. 16062).
14 (b) COST SHARE.—The Secretary shall require a re-
15 cipient of a grant provided under subsection (a) to provide
16 not less than 50 percent of the cost of the project carried
17 out using the grant.
18 (c) ADMINISTRATIVE COSTS.—The Secretary shall re-
19 serve not more than 3 percent of amounts made available
20 under subsection (a) for administrative costs of making
21 grants described in such subsection (a) pursuant to section
22 712 of the Energy Policy Act of 2005 (42 U.S.C. 16062).
† HR 5376 EAS
614
1 SEC. 50144. ENERGY INFRASTRUCTURE REINVESTMENT FI-
2 NANCING.
3 (a) APPROPRIATION.—In addition to amounts other-
4 wise available, there is appropriated to the Secretary for
5 fiscal year 2022, out of any money in the Treasury not
6 otherwise appropriated, $5,000,000,000, to remain avail-
7 able through September 30, 2026, to carry out activities
8 under section 1706 of the Energy Policy Act of 2005.
9 (b) COMMITMENT AUTHORITY.—The Secretary may
10 make, through September 30, 2026, commitments to guar-
11 antee loans for projects under section 1706 of the Energy
12 Policy Act of 2005 the total principal amount of which is
13 not greater than $250,000,000,000, subject to the limita-
14 tions that apply to loan guarantees under section 50141(d).
15 (c) ENERGY INFRASTRUCTURE REINVESTMENT FI-
16 NANCING.—Title XVII of the Energy Policy Act of 2005 is
17 amended by inserting after section 1705 (42 U.S.C. 16516)
18 the following:
19 ‘‘SEC. 1706. ENERGY INFRASTRUCTURE REINVESTMENT FI-
20 NANCING.
21 ‘‘(a) IN GENERAL.—Notwithstanding section 1703, the
22 Secretary may make guarantees, including refinancing,
23 under this section only for projects that—
24 ‘‘(1) retool, repower, repurpose, or replace energy
25 infrastructure that has ceased operations; or
† HR 5376 EAS
615
1 ‘‘(2) enable operating energy infrastructure to
2 avoid, reduce, utilize, or sequester air pollutants or
3 anthropogenic emissions of greenhouse gases.
4 ‘‘(b) INCLUSION.—A project under subsection (a) may
5 include the remediation of environmental damage associ-
6 ated with energy infrastructure.
7 ‘‘(c) REQUIREMENT.—A project under subsection
8 (a)(1) that involves electricity generation through the use
9 of fossil fuels shall be required to have controls or tech-
10 nologies to avoid, reduce, utilize, or sequester air pollutants
11 and anthropogenic emissions of greenhouse gases.
12 ‘‘(d) APPLICATION.—To apply for a guarantee under
13 this section, an applicant shall submit to the Secretary an
14 application at such time, in such manner, and containing
15 such information as the Secretary may require, including—
16 ‘‘(1) a detailed plan describing the proposed
17 project;
18 ‘‘(2) an analysis of how the proposed project will
19 engage with and affect associated communities; and
20 ‘‘(3) in the case of an applicant that is an elec-
21 tric utility, an assurance that the electric utility shall
22 pass on any financial benefit from the guarantee
23 made under this section to the customers of, or associ-
24 ated communities served by, the electric utility.
† HR 5376 EAS
616
1 ‘‘(e) TERM.—Notwithstanding section 1702(f), the
2 term of an obligation shall require full repayment over a
3 period not to exceed 30 years.
4 ‘‘(f) DEFINITION OF ENERGY INFRASTRUCTURE.—In
5 this section, the term ‘energy infrastructure’ means a facil-
6 ity, and associated equipment, used for—
7 ‘‘(1) the generation or transmission of electric
8 energy; or
9 ‘‘(2) the production, processing, and delivery of
10 fossil fuels, fuels derived from petroleum, or petro-
11 chemical feedstocks.’’.
12 (d) CONFORMING AMENDMENT.—Section 1702(o)(3) of
13 the Energy Policy Act of 2005 (42 U.S.C. 16512(o)(3)) is
14 amended by inserting ‘‘and projects described in section
15 1706(a)’’ before the period at the end.
16 SEC. 50145. TRIBAL ENERGY LOAN GUARANTEE PROGRAM.
17 (a) APPROPRIATION.—In addition to amounts other-
18 wise available, there is appropriated to the Secretary for
19 fiscal year 2022, out of any money in the Treasury not
20 otherwise appropriated, $75,000,000, to remain available
21 through September 30, 2028, to carry out section 2602(c)
22 of the Energy Policy Act of 1992 (25 U.S.C. 3502(c)), sub-
23 ject to the limitations that apply to loan guarantees under
24 section 50141(d).
† HR 5376 EAS
617
1 (b) DEPARTMENT OF ENERGY TRIBAL ENERGY LOAN
2 GUARANTEE PROGRAM.—Section 2602(c) of the Energy
3 Policy Act of 1992 (25 U.S.C. 3502(c)) is amended—
4 (1) in paragraph (1), by striking ‘‘) for an
5 amount equal to not more than 90 percent of’’ and
6 inserting ‘‘, except that a loan guarantee may guar-
7 antee any debt obligation of a non-Federal borrower
8 to any Eligible Lender (as defined in section 609.2 of
9 title 10, Code of Federal Regulations)) for’’; and
10 (2) in paragraph (4), by striking
11 ‘‘$2,000,000,000’’ and inserting ‘‘$20,000,000,000’’.
12 PART 5—ELECTRIC TRANSMISSION
13 SEC. 50151. TRANSMISSION FACILITY FINANCING.
14 (a) APPROPRIATION.—In addition to amounts other-
15 wise available, there is appropriated to the Secretary for
16 fiscal year 2022, out of any money in the Treasury not
17 otherwise appropriated, $2,000,000,000, to remain avail-
18 able through September 30, 2030, to carry out this section:
19 Provided, That the Secretary shall not enter into any loan
20 agreement pursuant to this section that could result in dis-
21 bursements after September 30, 2031.
22 (b) USE OF FUNDS.—The Secretary shall use the
23 amounts made available by subsection (a) to carry out a
24 program to pay the costs of direct loans to non-Federal bor-
25 rowers, subject to the limitations that apply to loan guaran-
† HR 5376 EAS
618
1 tees under section 50141(d) and under such terms and con-
2 ditions as the Secretary determines to be appropriate, for
3 the construction or modification of electric transmission fa-
4 cilities designated by the Secretary to be necessary in the
5 national interest under section 216(a) of the Federal Power
6 Act (16 U.S.C. 824p(a)).
7 (c) LOANS.—A direct loan provided under this sec-
8 tion—
9 (1) shall have a term that does not exceed the
10 lesser of—
11 (A) 90 percent of the projected useful life, in
12 years, of the eligible transmission facility; and
13 (B) 30 years;
14 (2) shall not exceed 80 percent of the project
15 costs; and
16 (3) shall, on first issuance, be subject to the con-
17 dition that the direct loan is not subordinate to other
18 financing.
19 (d) INTEREST RATES.—A direct loan provided under
20 this section shall bear interest at a rate determined by the
21 Secretary, taking into consideration market yields on out-
22 standing marketable obligations of the United States of
23 comparable maturities as of the date on which the direct
24 loan is made.
† HR 5376 EAS
619
1 (e) DEFINITION OF DIRECT LOAN.—In this section, the
2 term ‘‘direct loan’’ has the meaning given the term in sec-
3 tion 502 of the Federal Credit Reform Act of 1990 (2 U.S.C.
4 661a).
5 SEC. 50152. GRANTS TO FACILITATE THE SITING OF INTER-
6 STATE ELECTRICITY TRANSMISSION LINES.
7 (a) APPROPRIATION.—In addition to amounts other-
8 wise available, there is appropriated to the Secretary for
9 fiscal year 2022, out of any money in the Treasury not
10 otherwise appropriated, $760,000,000, to remain available
11 through September 30, 2029, for making grants in accord-
12 ance with this section and for administrative expenses asso-
13 ciated with carrying out this section.
14 (b) USE OF FUNDS.—
15 (1) IN GENERAL.—The Secretary may make a
16 grant under this section to a siting authority for,
17 with respect to a covered transmission project, any of
18 the following activities:
19 (A) Studies and analyses of the impacts of
20 the covered transmission project.
21 (B) Examination of up to 3 alternate siting
22 corridors within which the covered transmission
23 project feasibly could be sited.
24 (C) Participation by the siting authority in
25 regulatory proceedings or negotiations in another
† HR 5376 EAS
620
1 jurisdiction, or under the auspices of a Trans-
2 mission Organization (as defined in section 3 of
3 the Federal Power Act (16 U.S.C. 796)) that is
4 also considering the siting or permitting of the
5 covered transmission project.
6 (D) Participation by the siting authority in
7 regulatory proceedings at the Federal Energy
8 Regulatory Commission or a State regulatory
9 commission for determining applicable rates and
10 cost allocation for the covered transmission
11 project.
12 (E) Other measures and actions that may
13 improve the chances of, and shorten the time re-
14 quired for, approval by the siting authority of
15 the application relating to the siting or permit-
16 ting of the covered transmission project, as the
17 Secretary determines appropriate.
18 (2) ECONOMIC DEVELOPMENT.—The Secretary
19 may make a grant under this section to a siting au-
20 thority, or other State, local, or Tribal governmental
21 entity, for economic development activities for com-
22 munities that may be affected by the construction and
23 operation of a covered transmission project, provided
24 that the Secretary shall not enter into any grant
† HR 5376 EAS
621
1 agreement pursuant to this section that could result
2 in any outlays after September 30, 2031.
3 (c) CONDITIONS.—
4 (1) FINAL DECISION ON APPLICATION.—In order
5 to receive a grant for an activity described in sub-
6 section (b)(1), the Secretary shall require a siting au-
7 thority to agree, in writing, to reach a final decision
8 on the application relating to the siting or permitting
9 of the applicable covered transmission project not
10 later than 2 years after the date on which such grant
11 is provided, unless the Secretary authorizes an exten-
12 sion for good cause.
13 (2) FEDERAL SHARE.—The Federal share of the
14 cost of an activity described in subparagraph (C) or
15 (D) of subsection (b)(1) shall not exceed 50 percent.
16 (3) ECONOMIC DEVELOPMENT.—The Secretary
17 may only disburse grant funds for economic develop-
18 ment activities under subsection (b)(2)—
19 (A) to a siting authority upon approval by
20 the siting authority of the applicable covered
21 transmission project; and
22 (B) to any other State, local, or Tribal gov-
23 ernmental entity upon commencement of con-
24 struction of the applicable covered transmission
† HR 5376 EAS
622
1 project in the area under the jurisdiction of the
2 entity.
3 (d) RETURNING FUNDS.—If a siting authority that re-
4 ceives a grant for an activity described in subsection (b)(1)
5 fails to use all grant funds within 2 years of receipt, the
6 siting authority shall return to the Secretary any such un-
7 used funds.
8 (e) DEFINITIONS.—In this section:
9 (1) COVERED TRANSMISSION PROJECT.—The
10 term ‘‘covered transmission project’’ means a high-
11 voltage interstate or offshore electricity transmission
12 line—
13 (A) that is proposed to be constructed and
14 to operate—
15 (i) at a minimum of 275 kilovolts of
16 either alternating-current or direct-current
17 electric energy by an entity; or
18 (ii) offshore and at a minimum of 200
19 kilovolts of either alternating-current or di-
20 rect-current electric energy by an entity;
21 and
22 (B) for which such entity has applied, or
23 informed a siting authority of such entity’s in-
24 tent to apply, for regulatory approval.
† HR 5376 EAS
623
1 (2) SITING AUTHORITY.—The term ‘‘siting au-
2 thority’’ means a State, local, or Tribal governmental
3 entity with authority to make a final determination
4 regarding the siting, permitting, or regulatory status
5 of a covered transmission project that is proposed to
6 be located in an area under the jurisdiction of the en-
7 tity.
8 SEC. 50153. INTERREGIONAL AND OFFSHORE WIND ELEC-
9 TRICITY TRANSMISSION PLANNING, MOD-
10 ELING, AND ANALYSIS.
11 (a) APPROPRIATION.—In addition to amounts other-
12 wise available, there is appropriated to the Secretary for
13 fiscal year 2022, out of any money in the Treasury not
14 otherwise appropriated, $100,000,000, to remain available
15 through September 30, 2031, to carry out this section.
16 (b) USE OF FUNDS.—The Secretary shall use amounts
17 made available under subsection (a)—
18 (1) to pay expenses associated with convening
19 relevant stakeholders to address the development of
20 interregional electricity transmission and trans-
21 mission of electricity that is generated by offshore
22 wind; and
23 (2) to conduct planning, modeling, and analysis
24 regarding interregional electricity transmission and
25 transmission of electricity that is generated by off-
† HR 5376 EAS
624
1 shore wind, taking into account the local, regional,
2 and national economic, reliability, resilience, secu-
3 rity, public policy, and environmental benefits of
4 interregional electricity transmission and trans-
5 mission of electricity that is generated by offshore
6 wind, including planning, modeling, and analysis, as
7 the Secretary determines appropriate, pertaining to—
8 (A) clean energy integration into the elec-
9 tric grid, including the identification of renew-
10 able energy zones;
11 (B) the effects of changes in weather due to
12 climate change on the reliability and resilience
13 of the electric grid;
14 (C) cost allocation methodologies that facili-
15 tate the expansion of the bulk power system;
16 (D) the benefits of coordination between
17 generator interconnection processes and trans-
18 mission planning processes;
19 (E) the effect of increased electrification on
20 the electric grid;
21 (F) power flow modeling;
22 (G) the benefits of increased interconnec-
23 tions or interties between or among the Western
24 Interconnection, the Eastern Interconnection, the
† HR 5376 EAS
625
1 Electric Reliability Council of Texas, and other
2 interconnections, as applicable;
3 (H) the cooptimization of transmission and
4 generation, including variable energy resources,
5 energy storage, and demand-side management;
6 (I) the opportunities for use of nontrans-
7 mission alternatives, energy storage, and grid-
8 enhancing technologies;
9 (J) economic development opportunities for
10 communities arising from development of inter-
11 regional electricity transmission and trans-
12 mission of electricity that is generated by off-
13 shore wind;
14 (K) evaluation of existing rights-of-way and
15 the need for additional transmission corridors;
16 and
17 (L) a planned national transmission grid,
18 which would include a networked transmission
19 system to optimize the existing grid for inter-
20 connection of offshore wind farms.
21 PART 6—INDUSTRIAL
22 SEC. 50161. ADVANCED INDUSTRIAL FACILITIES DEPLOY-
23 MENT PROGRAM.
24 (a) OFFICE OF CLEAN ENERGY DEMONSTRATIONS.—
25 In addition to amounts otherwise available, there is appro-
† HR 5376 EAS
626
1 priated to the Secretary, acting through the Office of Clean
2 Energy Demonstrations, for fiscal year 2022, out of any
3 money in the Treasury not otherwise appropriated,
4 $5,812,000,000, to remain available through September 30,
5 2026, to carry out this section.
6 (b) FINANCIAL ASSISTANCE.—The Secretary shall use
7 funds appropriated by subsection (a) to provide financial
8 assistance, on a competitive basis, to eligible entities to
9 carry out projects for—
10 (1) the purchase and installation, or implemen-
11 tation, of advanced industrial technology at an eligi-
12 ble facility;
13 (2) retrofits, upgrades to, or operational im-
14 provements at an eligible facility to install or imple-
15 ment advanced industrial technology; or
16 (3) engineering studies and other work needed to
17 prepare an eligible facility for activities described in
18 paragraph (1) or (2).
19 (c) APPLICATION.—To be eligible to receive financial
20 assistance under subsection (b), an eligible entity shall sub-
21 mit to the Secretary an application at such time, in such
22 manner, and containing such information as the Secretary
23 may require, including the expected greenhouse gas emis-
24 sions reductions to be achieved by carrying out the project.
† HR 5376 EAS
627
1 (d) PRIORITY.—In providing financial assistance
2 under subsection (b), the Secretary shall give priority con-
3 sideration to projects on the basis of, as determined by the
4 Secretary—
5 (1) the expected greenhouse gas emissions reduc-
6 tions to be achieved by carrying out the project;
7 (2) the extent to which the project would provide
8 the greatest benefit for the greatest number of people
9 within the area in which the eligible facility is lo-
10 cated; and
11 (3) whether the eligible entity participates or
12 would participate in a partnership with purchasers of
13 the output of the eligible facility.
14 (e) COST SHARE.—The Secretary shall require an eli-
15 gible entity to provide not less than 50 percent of the cost
16 of a project carried out pursuant to this section.
17 (f) ADMINISTRATIVE COSTS.—The Secretary shall re-
18 serve not more than $300,000,000 of amounts made avail-
19 able under subsection (a) for administrative costs of car-
20 rying out this section.
21 (g) DEFINITIONS.—In this section:
22 (1) ADVANCED INDUSTRIAL TECHNOLOGY.—The
23 term ‘‘advanced industrial technology’’ means a tech-
24 nology directly involved in an industrial process, as
25 described in any of paragraphs (1) through (6) of sec-
† HR 5376 EAS
628
1 tion 454(c) of the Energy Independence and Security
2 Act of 2007 (42 U.S.C. 17113(c)), and designed to ac-
3 celerate greenhouse gas emissions reduction progress
4 to net-zero at an eligible facility, as determined by the
5 Secretary.
6 (2) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
7 ty’’ means the owner or operator of an eligible facil-
8 ity.
9 (3) ELIGIBLE FACILITY.—The term ‘‘eligible fa-
10 cility’’ means a domestic, non-Federal, nonpower in-
11 dustrial or manufacturing facility engaged in energy-
12 intensive industrial processes, including production
13 processes for iron, steel, steel mill products, alu-
14 minum, cement, concrete, glass, pulp, paper, indus-
15 trial ceramics, chemicals, and other energy intensive
16 industrial processes, as determined by the Secretary.
17 (4) FINANCIAL ASSISTANCE.—The term ‘‘finan-
18 cial assistance’’ means a grant, rebate, direct loan, or
19 cooperative agreement.
20 PART 7—OTHER ENERGY MATTERS
21 SEC. 50171. DEPARTMENT OF ENERGY OVERSIGHT.
22 In addition to amounts otherwise available, there is
23 appropriated to the Secretary for fiscal year 2022, out of
24 any money in the Treasury not otherwise appropriated,
25 $20,000,000, to remain available through September 30,
† HR 5376 EAS
629
1 2031, for oversight by the Department of Energy Office of
2 Inspector General of the Department of Energy activities
3 for which funding is appropriated in this subtitle.
4 SEC. 50172. NATIONAL LABORATORY INFRASTRUCTURE.
5 (a) OFFICE OF SCIENCE.—In addition to amounts oth-
6 erwise available, there is appropriated to the Secretary, act-
7 ing through the Director of the Office of Science, for fiscal
8 year 2022, out of any money in the Treasury not otherwise
9 appropriated, to remain available through September 30,
10 2027—
11 (1) $133,240,000 to carry out activities for
12 science laboratory infrastructure projects;
13 (2) $303,656,000 to carry out activities for high
14 energy physics construction and major items of equip-
15 ment projects;
16 (3) $280,000,000 to carry out activities for fu-
17 sion energy science construction and major items of
18 equipment projects;
19 (4) $217,000,000 to carry out activities for nu-
20 clear physics construction and major items of equip-
21 ment projects;
22 (5) $163,791,000 to carry out activities for ad-
23 vanced scientific computing research facilities;
24 (6) $294,500,000 to carry out activities for basic
25 energy sciences projects; and
† HR 5376 EAS
630
1 (7) $157,813,000 to carry out activities for iso-
2 tope research and development facilities.
3 (b) OFFICE OF FOSSIL ENERGY AND CARBON MANAGE-
4 MENT.—In addition to amounts otherwise available, there
5 is appropriated to the Secretary for fiscal year 2022, out
6 of any money in the Treasury not otherwise appropriated,
7 $150,000,000, to remain available through September 30,
8 2027, to carry out activities for infrastructure and general
9 plant projects carried out by the Office of Fossil Energy
10 and Carbon Management.
11 (c) OFFICE OF NUCLEAR ENERGY.—In addition to
12 amounts otherwise available, there is appropriated to the
13 Secretary for fiscal year 2022, out of any money in the
14 Treasury not otherwise appropriated, $150,000,000, to re-
15 main available through September 30, 2027, to carry out
16 activities for infrastructure and general plant projects car-
17 ried out by the Office of Nuclear Energy.
18 (d) OFFICE OF ENERGY EFFICIENCY AND RENEWABLE
19 ENERGY.—In addition to amounts otherwise available,
20 there is appropriated to the Secretary for fiscal year 2022,
21 out of any money in the Treasury not otherwise appro-
22 priated, $150,000,000, to remain available through Sep-
23 tember 30, 2027, to carry out activities for infrastructure
24 and general plant projects carried out by the Office of En-
25 ergy Efficiency and Renewable Energy.
† HR 5376 EAS
631
1 SEC. 50173. AVAILABILITY OF HIGH-ASSAY LOW-ENRICHED
2 URANIUM.
3 (a) APPROPRIATIONS.—In addition to amounts other-
4 wise available, there is appropriated to the Secretary of for
5 fiscal year 2022, out of any money in the Treasury not
6 otherwise appropriated, to remain available through Sep-
7 tember 30, 2026—
8 (1) $100,000,000 to carry out the program ele-
9 ments described in subparagraphs (A) through (C) of
10 section 2001(a)(2) of the Energy Act of 2020 (42
11 U.S.C. 16281(a)(2));
12 (2) $500,000,000 to carry out the program ele-
13 ments described in subparagraphs (D) through (H) of
14 that section; and
15 (3) $100,000,000 to carry out activities to sup-
16 port the availability of high-assay low-enriched ura-
17 nium for civilian domestic research, development,
18 demonstration, and commercial use under section
19 2001 of the Energy Act of 2020 (42 U.S.C. 16281).
20 (b) COMPETITIVE PROCEDURES.—To the maximum
21 extent practicable, the Department of Energy shall, in a
22 manner consistent with section 989 of the Energy Policy
23 Act of 2005 (42 U.S.C. 16353), use a competitive, merit-
24 based review process in carrying out research, development,
25 demonstration, and deployment activities under section
26 2001 of the Energy Act of 2020 (42 U.S.C. 16281).
† HR 5376 EAS
632
1 (c) ADMINISTRATIVE EXPENSES.—The Secretary may
2 use not more than 3 percent of the amounts appropriated
3 by subsection (a) for administrative purposes.
4 Subtitle B—Natural Resources
5 PART 1—GENERAL PROVISIONS
6 SEC. 50211. DEFINITIONS.
7 In this subtitle:
8 (1) SECRETARY.—The term ‘‘Secretary’’ means
9 the Secretary of the Interior.
10 (2) UNITED STATES INSULAR AREAS.—The term
11 ‘‘United States Insular Areas’’ means American
12 Samoa, the Commonwealth of the Northern Mariana
13 Islands, Guam, the Commonwealth of Puerto Rico,
14 and the United States Virgin Islands.
15 PART 2—PUBLIC LANDS
16 SEC. 50221. NATIONAL PARKS AND PUBLIC LANDS CON-
17 SERVATION AND RESILIENCE.
18 In addition to amounts otherwise available, there is
19 appropriated to the Secretary for fiscal year 2022, out of
20 any money in the Treasury not otherwise appropriated,
21 $250,000,000, to remain available through September 30,
22 2031, to carry out projects for the conservation, protection,
23 and resiliency of lands and resources administered by the
24 National Park Service and Bureau of Land Management.
† HR 5376 EAS
633
1 None of the funds provided under this section shall be sub-
2 ject to cost-share or matching requirements.
3 SEC. 50222. NATIONAL PARKS AND PUBLIC LANDS CON-
4 SERVATION AND ECOSYSTEM RESTORATION.
5 In addition to amounts otherwise available, there is
6 appropriated to the Secretary for fiscal year 2022, out of
7 any money in the Treasury not otherwise appropriated,
8 $250,000,000, to remain available through September 30,
9 2031, to carry out conservation, ecosystem and habitat res-
10 toration projects on lands administered by the National
11 Park Service and Bureau of Land Management. None of
12 the funds provided under this section shall be subject to cost-
13 share or matching requirements.
14 SEC. 50223. NATIONAL PARK SERVICE EMPLOYEES.
15 In addition to amounts otherwise available, there is
16 appropriated to the Secretary for fiscal year 2022, out of
17 any money in the Treasury not otherwise appropriated,
18 $500,000,000, to remain available through September 30,
19 2030, to hire employees to serve in units of the National
20 Park System or national historic or national scenic trails
21 administered by the National Park Service.
22 SEC. 50224. NATIONAL PARK SYSTEM DEFERRED MAINTE-
23 NANCE.
24 In addition to amounts otherwise available, there is
25 appropriated to the Secretary for fiscal year 2022, out of
† HR 5376 EAS
634
1 any money in the Treasury not otherwise appropriated,
2 $200,000,000, to remain available through September 30,
3 2026, to carry out priority deferred maintenance projects,
4 through direct expenditures or transfers, within the bound-
5 aries of the National Park System.
6 PART 3—DROUGHT RESPONSE AND
7 PREPAREDNESS
8 SEC. 50231. BUREAU OF RECLAMATION DOMESTIC WATER
9 SUPPLY PROJECTS.
10 In addition to amounts otherwise available, there is
11 appropriated to the Secretary, acting through the Commis-
12 sioner of Reclamation, for fiscal year 2022, out of any
13 money in the Treasury not otherwise appropriated,
14 $550,000,000, to remain available through September 30,
15 2031, for grants, contracts, or financial assistance agree-
16 ments for disadvantaged communities (identified according
17 to criteria adopted by the Commissioner of Reclamation)
18 in a manner as determined by the Commissioner of Rec-
19 lamation for up to 100 percent of the cost of the planning,
20 design, or construction of water projects the primary pur-
21 pose of which is to provide domestic water supplies to com-
22 munities or households that do not have reliable access to
23 domestic water supplies in a State or territory described
24 in the first section of the Act of June 17, 1902 (43 U.S.C.
25 391; 32 Stat. 388, chapter 1093).
† HR 5376 EAS
635
1 SEC. 50232. CANAL IMPROVEMENT PROJECTS.
2 In addition to amounts otherwise available, there is
3 appropriated to the Secretary, acting through the Commis-
4 sioner of Reclamation, for fiscal year 2022, out of any
5 money in the Treasury not otherwise appropriated,
6 $25,000,000, to remain available through September 30,
7 2031, for the design, study, and implementation of projects
8 (including pilot and demonstration projects) to cover water
9 conveyance facilities with solar panels to generate renew-
10 able energy in a manner as determined by the Secretary
11 or for other solar projects associated with Bureau of Rec-
12 lamation projects that increase water efficiency and assist
13 in implementation of clean energy goals.
14 SEC. 50233. DROUGHT MITIGATION IN THE RECLAMATION
15 STATES.
16 (a) DEFINITION OF RECLAMATION STATE.—In this
17 section, the term ‘‘Reclamation State’’ means a State or ter-
18 ritory described in the first section of the Act of June 17,
19 1902 (32 Stat. 388, chapter 1093; 43 U.S.C. 391).
20 (b) APPROPRIATION.—In addition to amounts other-
21 wise available, there is appropriated to the Secretary (act-
22 ing through the Commissioner of Reclamation), for fiscal
23 year 2022, out of any money in the Treasury not otherwise
24 appropriated, $4,000,000,000, to remain available through
25 September 30, 2026, for grants, contracts, or financial as-
26 sistance agreements, in accordance with the reclamation
† HR 5376 EAS
636
1 laws, to or with public entities and Indian Tribes, that pro-
2 vide for the conduct of the following activities to mitigate
3 the impacts of drought in the Reclamation States, with pri-
4 ority given to the Colorado River Basin and other basins
5 experiencing comparable levels of long-term drought, to be
6 implemented in compliance with applicable environmental
7 law:
8 (1) Compensation for a temporary or multiyear
9 voluntary reduction in diversion of water or con-
10 sumptive water use.
11 (2) Voluntary system conservation projects that
12 achieve verifiable reductions in use of or demand for
13 water supplies or provide environmental benefits in
14 the Lower Basin or Upper Basin of the Colorado
15 River.
16 (3) Ecosystem and habitat restoration projects to
17 address issues directly caused by drought in a river
18 basin or inland water body.
19 (c) REPORT.—Not later than 1 year after the date of
20 enactment of this Act, and each year thereafter, the Sec-
21 retary shall submit to Congress a report that describes any
22 expenditures under this section.
† HR 5376 EAS
637
1 PART 4—INSULAR AFFAIRS
2 SEC. 50241. OFFICE OF INSULAR AFFAIRS CLIMATE CHANGE
3 TECHNICAL ASSISTANCE.
4 (a) IN GENERAL.—In addition to amounts otherwise
5 available, there is appropriated to the Secretary, acting
6 through the Office of Insular Affairs, for fiscal year 2022,
7 out of any money in the Treasury not otherwise appro-
8 priated, $15,000,000, to remain available through Sep-
9 tember 30, 2026, to provide technical assistance for climate
10 change planning, mitigation, adaptation, and resilience to
11 United States Insular Areas.
12 (b) ADMINISTRATIVE EXPENSES.—In addition to
13 amounts otherwise available, there is appropriated to the
14 Secretary, acting through the Office of Insular Affairs, for
15 fiscal year 2022, out of any money in the Treasury not
16 otherwise appropriated, $900,000, to remain available
17 through September 30, 2026, for necessary administrative
18 expenses associated with carrying out this section.
19 PART 5—OFFSHORE WIND
20 SEC. 50251. LEASING ON THE OUTER CONTINENTAL SHELF.
21 (a) LEASING AUTHORIZED.—The Secretary may grant
22 leases, easements, and rights-of-way pursuant to section
23 8(p)(1)(C) of the Outer Continental Shelf Lands Act (43
24 U.S.C. 1337(p)(1)(C)) in an area withdrawn by—
25 (1) the Presidential memorandum entitled
26 ‘‘Memorandum on the Withdrawal of Certain Areas of
† HR 5376 EAS
638
1 the United States Outer Continental Shelf from Leas-
2 ing Disposition’’ and dated September 8, 2020; or
3 (2) the Presidential memorandum entitled ‘‘Pres-
4 idential Determination on the Withdrawal of Certain
5 Areas of the United States Outer Continental Shelf
6 from Leasing Disposition’’ and dated September 25,
7 2020.
8 (b) OFFSHORE WIND FOR THE TERRITORIES.—
9 (1) APPLICATION OF OUTER CONTINENTAL SHELF
10 LANDS ACT WITH RESPECT TO TERRITORIES OF THE
11 UNITED STATES.—
12 (A) IN GENERAL.—Section 2 of the Outer
13 Continental Shelf Lands Act (43 U.S.C. 1331) is
14 amended—
15 (i) in subsection (a)—
16 (I) by striking ‘‘means all’’ and
17 inserting the following: ‘‘means—
18 ‘‘(1) all’’; and
19 (II) in paragraph (1) (as so des-
20 ignated), by striking ‘‘control;’’ and in-
21 serting the following: ‘‘control or with-
22 in the exclusive economic zone of the
23 United States and adjacent to any ter-
24 ritory of the United States; and’’; and
† HR 5376 EAS
639
1 (III) by adding at the end fol-
2 lowing:
3 ‘‘(2) does not include any area conveyed by Con-
4 gress to a territorial government for administration;’’;
5 (ii) in subsection (p), by striking
6 ‘‘and’’ after the semicolon at the end;
7 (iii) in subsection (q), by striking the
8 period at the end and inserting ‘‘; and’’;
9 and
10 (iv) by adding at the end the following:
11 ‘‘(r) The term ‘State’ means—
12 ‘‘(1) each of the several States;
13 ‘‘(2) the Commonwealth of Puerto Rico;
14 ‘‘(3) Guam;
15 ‘‘(4) American Samoa;
16 ‘‘(5) the United States Virgin Islands; and
17 ‘‘(6) the Commonwealth of the Northern Mariana
18 Islands.’’.
19 (B) EXCLUSIONS.—Section 18 of the Outer
20 Continental Shelf Lands Act (43 U.S.C. 1344) is
21 amended by adding at the end the following:
22 ‘‘(i) APPLICATION.—This section shall
23 not apply to the scheduling of any lease sale
24 in an area of the outer Continental Shelf
25 that is adjacent to the Commonwealth of
† HR 5376 EAS
640
1 Puerto Rico, Guam, American Samoa, the
2 United States Virgin Islands, or the Com-
3 monwealth of the Northern Mariana Is-
4 lands.’’.
5 (2) WIND LEASE SALES FOR AREAS OF THE
6 OUTER CONTINENTAL SHELF.—The Outer Continental
7 Shelf Lands Act (43 U.S.C. 1331 et seq.) is amended
8 by adding at the end the following:
9 ‘‘SEC. 33. WIND LEASE SALES FOR AREAS OF THE OUTER
10 CONTINENTAL SHELF OFFSHORE OF TERRI-
11 TORIES OF THE UNITED STATES.
12 ‘‘(a) WIND LEASE SALES OFF COASTS OF TERRI-
13 TORIES OF THE UNITED STATES.—
14 ‘‘(1) CALL FOR INFORMATION AND NOMINA-
15 TIONS.—
16 ‘‘(A) IN GENERAL.—The Secretary shall
17 issue calls for information and nominations for
18 proposed wind lease sales for areas of the outer
19 Continental Shelf described in paragraph (2)
20 that are determined to be feasible.
21 ‘‘(B) INITIAL CALL.—Not later than Sep-
22 tember 30, 2025, the Secretary shall issue an ini-
23 tial call for information and nominations under
24 this paragraph.
† HR 5376 EAS
641
1 ‘‘(2) CONDITIONAL WIND LEASE SALES.—The
2 Secretary may conduct wind lease sales in each area
3 within the exclusive economic zone of the United
4 States adjacent to the Commonwealth of Puerto Rico,
5 Guam, American Samoa, the United States Virgin Is-
6 lands, or the Commonwealth of the Northern Mariana
7 Islands that meets each of the following criteria:
8 ‘‘(A) The Secretary has concluded that a
9 wind lease sale in the area is feasible.
10 ‘‘(B) The Secretary has determined that
11 there is sufficient interest in leasing the area.
12 ‘‘(C) The Secretary has consulted with the
13 Governor of the territory regarding the suit-
14 ability of the area for wind energy develop-
15 ment.’’.
16 PART 6—FOSSIL FUEL RESOURCES
17 SEC. 50261. OFFSHORE OIL AND GAS ROYALTY RATE.
18 Section 8(a)(1) of the Outer Continental Shelf Lands
19 Act (43 U.S.C. 1337(a)(1)) is amended—
20 (1) in each of subparagraphs (A) and (C), by
21 striking ‘‘not less than 121⁄2 per centum’’ each place
22 it appears and inserting ‘‘not less than 162⁄3 percent,
23 but not more than 183⁄4 percent, during the 10-year
24 period beginning on the date of enactment of the Act
25 titled ‘An Act to provide for reconciliation pursuant
† HR 5376 EAS
642
1 to title II of S. Con. Res. 14’, and not less than 162⁄3
2 percent thereafter,’’;
3 (2) in subparagraph (F), by striking ‘‘no less
4 than 121⁄2 per centum’’ and inserting ‘‘not less than
5 162⁄3 percent, but not more than 183⁄4 percent, during
6 the 10-year period beginning on the date of enactment
7 of the Act titled ‘An Act to provide for reconciliation
8 pursuant to title II of S. Con. Res. 14’, and not less
9 than 162⁄3 percent thereafter,’’; and
10 (3) in subparagraph (H), by striking ‘‘no less
11 than 12 and 1⁄2 per centum’’ and inserting ‘‘not less
12 than 162⁄3 percent, but not more than 183⁄4 percent,
13 during the 10-year period beginning on the date of
14 enactment of the Act titled ‘An Act to provide for rec-
15 onciliation pursuant to title II of S. Con. Res. 14’,
16 and not less than 162⁄3 percent thereafter,’’.
17 SEC. 50262. MINERAL LEASING ACT MODERNIZATION.
18 (a) ONSHORE OIL AND GAS ROYALTY RATES.—
19 (1) LEASE OF OIL AND GAS LAND.—Section 17
20 of the Mineral Leasing Act (30 U.S.C. 226) is amend-
21 ed—
22 (A) in subsection (b)(1)(A), in the fifth sen-
23 tence—
24 (i) by striking ‘‘12.5’’ and inserting
25 ‘‘162⁄3’’; and
† HR 5376 EAS
643
1 (ii) by inserting ‘‘or, in the case of a
2 lease issued during the 10-year period be-
3 ginning on the date of enactment of the Act
4 titled ‘An Act to provide for reconciliation
5 pursuant to title II of S. Con. Res. 14’,
6 162⁄3 percent in amount or value of the pro-
7 duction removed or sold from the lease’’ be-
8 fore the period at the end; and
9 (B) by striking ‘‘121⁄2 per centum’’ each
10 place it appears and inserting ‘‘162⁄3 percent’’.
11 (2) CONDITIONS FOR REINSTATEMENT.—Section
12 31(e)(3) of the Mineral Leasing Act (30 U.S.C.
13 188(e)(3)) is amended by striking ‘‘162⁄3’’ each place
14 it appears and inserting ‘‘20’’.
15 (b) OIL AND GAS MINIMUM BID.—Section 17(b) of the
16 Mineral Leasing Act (30 U.S.C. 226(b)) is amended—
17 (1) in paragraph (1)(B), in the first sentence, by
18 striking ‘‘$2 per acre for a period of 2 years from the
19 date of enactment of the Federal Onshore Oil and Gas
20 Leasing Reform Act of 1987.’’ and inserting ‘‘$10 per
21 acre during the 10-year period beginning on the date
22 of enactment of the Act titled ‘An Act to provide for
23 reconciliation pursuant to title II of S. Con. Res.
24 14’.’’; and
† HR 5376 EAS
644
1 (2) in paragraph (2)(C), by striking ‘‘$2 per
2 acre’’ and inserting ‘‘$10 per acre’’.
3 (c) FOSSIL FUEL RENTAL RATES.—
4 (1) ANNUAL RENTALS.—Section 17(d) of the
5 Mineral Leasing Act (30 U.S.C. 226(d)) is amended,
6 in the first sentence, by striking ‘‘$1.50 per acre’’ and
7 all that follows through the period at the end and in-
8 serting ‘‘$3 per acre per year during the 2-year pe-
9 riod beginning on the date the lease begins for new
10 leases, and after the end of that 2-year period, $5 per
11 acre per year for the following 6-year period, and not
12 less than $15 per acre per year thereafter, or, in the
13 case of a lease issued during the 10-year period begin-
14 ning on the date of enactment of the Act titled ‘An
15 Act to provide for reconciliation pursuant to title II
16 of S. Con. Res. 14’, $3 per acre per year during the
17 2-year period beginning on the date the lease begins,
18 and after the end of that 2-year period, $5 per acre
19 per year for the following 6-year period, and $15 per
20 acre per year thereafter.’’.
21 (2) RENTALS IN REINSTATED LEASES.—Section
22 31(e)(2) of the Mineral Leasing Act (30 U.S.C.
23 188(e)(2)) is amended by striking ‘‘$10’’ and insert-
24 ing ‘‘$20’’.
† HR 5376 EAS
645
1 (d) EXPRESSION OF INTEREST FEE.—Section 17 of the
2 Mineral Leasing Act (30 U.S.C. 226) is amended by adding
3 at the end the following:
4 ‘‘(q) FEE FOR EXPRESSION OF INTEREST.—
5 ‘‘(1) IN GENERAL.—The Secretary shall assess a
6 nonrefundable fee against any person that, in accord-
7 ance with procedures established by the Secretary to
8 carry out this subsection, submits an expression of in-
9 terest in leasing land available for disposition under
10 this section for exploration for, and development of,
11 oil or gas.
12 ‘‘(2) AMOUNT OF FEE.—
13 ‘‘(A) IN GENERAL.—Subject to subpara-
14 graph (B), the fee assessed under paragraph (1)
15 shall be $5 per acre of the area covered by the
16 applicable expression of interest.
17 ‘‘(B) ADJUSTMENT OF FEE.—The Secretary
18 shall, by regulation, not less frequently than
19 every 4 years, adjust the amount of the fee under
20 subparagraph (A) to reflect the change in infla-
21 tion.’’.
22 (e) ELIMINATION OF NONCOMPETITIVE LEASING.—
23 (1) IN GENERAL.—Section 17 of the Mineral
24 Leasing Act (30 U.S.C. 226) is amended—
25 (A) in subsection (b)—
† HR 5376 EAS
646
1 (i) in paragraph (1)(A)—
2 (I) in the first sentence, by strik-
3 ing ‘‘paragraphs (2) and (3) of this
4 subsection’’ and inserting ‘‘paragraph
5 (2)’’; and
6 (II) by striking the last sentence;
7 and
8 (ii) by striking paragraph (3);
9 (B) by striking subsection (c) and inserting
10 the following:
11 ‘‘(c) ADDITIONAL ROUNDS OF COMPETITIVE BID-
12 DING.—Land made available for leasing under subsection
13 (b)(1) for which no bid is accepted or received, or the land
14 for which a lease terminates, expires, is cancelled, or is re-
15 linquished, may be made available by the Secretary of the
16 Interior for a new round of competitive bidding under that
17 subsection.’’; and
18 (C) by striking subsection (e) and inserting
19 the following:
20 ‘‘(e) TERM OF LEASE.—
21 ‘‘(1) IN GENERAL.—Any lease issued under this
22 section, including a lease for tar sand areas, shall be
23 for a primary term of 10 years.
24 ‘‘(2) CONTINUATION OF LEASE.—A lease de-
25 scribed in paragraph (1) shall continue after the pri-
† HR 5376 EAS
647
1 mary term of the lease for any period during which
2 oil or gas is produced in paying quantities.
3 ‘‘(3) ADDITIONAL EXTENSIONS.—Any lease
4 issued under this section for land on which, or for
5 which under an approved cooperative or unit plan of
6 development or operation, actual drilling operations
7 were commenced and diligently prosecuted prior to
8 the end of the primary term of the lease shall be ex-
9 tended for 2 years and for any period thereafter dur-
10 ing which oil or gas is produced in paying quan-
11 tities.’’.
12 (2) CONFORMING AMENDMENTS.—Section 31 of
13 the Mineral Leasing Act (30 U.S.C. 188) is amend-
14 ed—
15 (A) in subsection (d)(1), in the first sen-
16 tence, by striking ‘‘or section 17(c) of this Act’’;
17 (B) in subsection (e)—
18 (i) in paragraph (2)—
19 (I) by striking ‘‘either’’; and
20 (II) by striking ‘‘or the inclusion’’
21 and all that follows through ‘‘, all’’;
22 and
23 (ii) in paragraph (3)—
24 (I) in subparagraph (A), by add-
25 ing ‘‘and’’ after the semicolon;
† HR 5376 EAS
648
1 (II) by striking subparagraph
2 (B); and
3 (III) by striking ‘‘(3)(A) pay-
4 ment’’ and inserting the following:
5 ‘‘(3) payment’’;
6 (C) in subsection (g)—
7 (i) in paragraph (1), by striking ‘‘as a
8 competitive’’ and all that follows through
9 ‘‘of this Act’’ and inserting ‘‘in the same
10 manner as the original lease issued pursu-
11 ant to section 17’’;
12 (ii) by striking paragraph (2);
13 (iii) by redesignating paragraphs (3)
14 and (4) as paragraphs (2) and (3), respec-
15 tively; and
16 (iv) in paragraph (2) (as so redesig-
17 nated), by striking ‘‘applicable to leases
18 issued under subsection 17(c) of this Act (30
19 U.S.C. 226(c)) except,’’ and inserting ‘‘ex-
20 cept’’;
21 (D) in subsection (h), by striking ‘‘sub-
22 sections (d) and (f) of this section’’ and inserting
23 ‘‘subsection (d)’’;
24 (E) in subsection (i), by striking ‘‘(i)(1) In
25 acting’’ and all that follows through ‘‘of this sec-
† HR 5376 EAS
649
1 tion’’ in paragraph (2) and inserting the fol-
2 lowing:
3 ‘‘(i) ROYALTY REDUCTION IN REIN-
4 STATED LEASES.—In acting on a petition
5 for reinstatement pursuant to subsection
6 (d)’’;
7 (F) by striking subsection (f); and
8 (G) by redesignating subsections (g) through
9 (j) as subsections (f) through (i), respectively.
10 SEC. 50263. ROYALTIES ON ALL EXTRACTED METHANE.
11 (a) IN GENERAL.—For all leases issued after the date
12 of enactment of this Act, except as provided in subsection
13 (b), royalties paid for gas produced from Federal land and
14 on the outer Continental Shelf shall be assessed on all gas
15 produced, including all gas that is consumed or lost by vent-
16 ing, flaring, or negligent releases through any equipment
17 during upstream operations.
18 (b) EXCEPTION.—Subsection (a) shall not apply with
19 respect to—
20 (1) gas vented or flared for not longer than 48
21 hours in an emergency situation that poses a danger
22 to human health, safety, or the environment;
23 (2) gas used or consumed within the area of the
24 lease, unit, or communitized area for the benefit of the
25 lease, unit, or communitized area; or
† HR 5376 EAS
650
1 (3) gas that is unavoidably lost.
2 SEC. 50264. LEASE SALES UNDER THE 2017–2022 OUTER
3 CONTINENTAL SHELF LEASING PROGRAM.
4 (a) DEFINITIONS.—In this section:
5 (1) LEASE SALE 257.—The term ‘‘Lease Sale
6 257’’ means the lease sale numbered 257 that was ap-
7 proved in the Record of Decision described in the no-
8 tice of availability of a record of decision issued on
9 August 31, 2021, entitled ‘‘Gulf of Mexico, Outer Con-
10 tinental Shelf (OCS), Oil and Gas Lease Sale 257’’
11 (86 Fed. Reg. 50160 (September 7, 2021)), and is the
12 subject of the final notice of sale entitled ‘‘Gulf of
13 Mexico Outer Continental Shelf Oil and Gas Lease
14 Sale 257’’ (86 Fed. Reg. 54728 (October 4, 2021)).
15 (2) LEASE SALE 258.—The term ‘‘Lease Sale
16 258’’ means the lease sale numbered 258 described in
17 the 2017–2022 Outer Continental Shelf Oil and Gas
18 Leasing Proposed Final Program published on No-
19 vember 18, 2016, and approved by the Secretary in
20 the Record of Decision issued on January 17, 2017,
21 described in the notice of availability entitled ‘‘Record
22 of Decision for the 2017–2022 Outer Continental
23 Shelf Oil and Gas Leasing Program Final Pro-
24 grammatic Environmental Impact Statement;
† HR 5376 EAS
651
1 MMAA104000’’ (82 Fed. Reg. 6643 (January 19,
2 2017)).
3 (3) LEASE SALE 259.—The term ‘‘Lease Sale
4 259’’ means the lease sale numbered 259 described in
5 the 2017–2022 Outer Continental Shelf Oil and Gas
6 Leasing Proposed Final Program published on No-
7 vember 18, 2016, and approved by the Secretary in
8 the Record of Decision issued on January 17, 2017,
9 described in the notice of availability entitled ‘‘Record
10 of Decision for the 2017–2022 Outer Continental
11 Shelf Oil and Gas Leasing Program Final Pro-
12 grammatic Environmental Impact Statement;
13 MMAA104000’’ (82 Fed. Reg. 6643 (January 19,
14 2017)).
15 (4) LEASE SALE 261.—The term ‘‘Lease Sale
16 261’’ means the lease sale numbered 261 described in
17 the 2017–2022 Outer Continental Shelf Oil and Gas
18 Leasing Proposed Final Program published on No-
19 vember 18, 2016, and approved by the Secretary in
20 the Record of Decision issued on January 17, 2017,
21 described in the notice of availability entitled ‘‘Record
22 of Decision for the 2017–2022 Outer Continental
23 Shelf Oil and Gas Leasing Program Final Pro-
24 grammatic Environmental Impact Statement;
† HR 5376 EAS
652
1 MMAA104000’’ (82 Fed. Reg. 6643 (January 19,
2 2017)).
3 (b) LEASE SALE 257 REINSTATEMENT.—
4 (1) ACCEPTANCE OF BIDS.—Not later 30 days
5 after the date of enactment of this Act, the Secretary
6 shall, without modification or delay—
7 (A) accept the highest valid bid for each
8 tract or bidding unit of Lease Sale 257 for which
9 a valid bid was received on November 17, 2021;
10 and
11 (B) provide the appropriate lease form to
12 the winning bidder to execute and return.
13 (2) LEASE ISSUANCE.—On receipt of an executed
14 lease form under paragraph (1)(B) and payment of
15 the rental for the first year, the balance of the bonus
16 bid (unless deferred), and any required bond or secu-
17 rity from the high bidder, the Secretary shall prompt-
18 ly issue to the high bidder a fully executed lease, in
19 accordance with—
20 (A) the regulations in effect on the date of
21 Lease Sale 257; and
22 (B) the terms and conditions of the final
23 notice of sale entitled ‘‘Gulf of Mexico Outer
24 Continental Shelf Oil and Gas Lease Sale 257’’
25 (86 Fed. Reg. 54728 (October 4, 2021)).
† HR 5376 EAS
653
1 (c) REQUIREMENT FOR LEASE SALE 258.—Notwith-
2 standing the expiration of the 2017–2022 leasing program,
3 not later than December 31, 2022, the Secretary shall con-
4 duct Lease Sale 258 in accordance with the Record of Deci-
5 sion approved by the Secretary on January 17, 2017, de-
6 scribed in the notice of availability entitled ‘‘Record of De-
7 cision for the 2017–2022 Outer Continental Shelf Oil and
8 Gas Leasing Program Final Programmatic Environmental
9 Impact Statement; MMAA104000’’ issued on January 17,
10 2017 (82 Fed. Reg. 6643 (January 19, 2017)).
11 (d) REQUIREMENT FOR LEASE SALE 259.—Notwith-
12 standing the expiration of the 2017–2022 leasing program,
13 not later than March 31, 2023, the Secretary shall conduct
14 Lease Sale 259 in accordance with the Record of Decision
15 approved by the Secretary on January 17, 2017, described
16 in the notice of availability entitled ‘‘Record of Decision
17 for the 2017–2022 Outer Continental Shelf Oil and Gas
18 Leasing Program Final Programmatic Environmental Im-
19 pact Statement; MMAA104000’’ issued on January 17,
20 2017 (82 Fed. Reg. 6643 (January 19, 2017)).
21 (e) REQUIREMENT FOR LEASE SALE 261.—Notwith-
22 standing the expiration of the 2017–2022 leasing program,
23 not later than September 30, 2023, the Secretary shall con-
24 duct Lease Sale 261 in accordance with the Record of Deci-
25 sion approved by the Secretary on January 17, 2017, de-
† HR 5376 EAS
654
1 scribed in the notice of availability entitled ‘‘Record of De-
2 cision for the 2017–2022 Outer Continental Shelf Oil and
3 Gas Leasing Program Final Programmatic Environmental
4 Impact Statement; MMAA104000’’ issued on January 17,
5 2017 (82 Fed. Reg. 6643 (January 19, 2017)).
6 SEC. 50265. ENSURING ENERGY SECURITY.
7 (a) DEFINITIONS.—In this section:
8 (1) FEDERAL LAND.—The term ‘‘Federal land’’
9 means public lands (as defined in section 103 of the
10 Federal Land Policy and Management Act of 1976
11 (43 U.S.C. 1702)).
12 (2) OFFSHORE LEASE SALE.—The term ‘‘offshore
13 lease sale’’ means an oil and gas lease sale—
14 (A) that is held by the Secretary in accord-
15 ance with the Outer Continental Shelf Lands Act
16 (43 U.S.C. 1331 et seq.); and
17 (B) that, if any acceptable bids have been
18 received for any tract offered in the lease sale, re-
19 sults in the issuance of a lease.
20 (3) ONSHORE LEASE SALE.—The term ‘‘onshore
21 lease sale’’ means a quarterly oil and gas lease sale—
22 (A) that is held by the Secretary in accord-
23 ance with section 17 of the Mineral Leasing Act
24 (30 U.S.C. 226); and
† HR 5376 EAS
655
1 (B) that, if any acceptable bids have been
2 received for any parcel offered in the lease sale,
3 results in the issuance of a lease.
4 (b) LIMITATION ON ISSUANCE OF CERTAIN LEASES OR
5 RIGHTS-OF-WAY.—During the 10-year period beginning on
6 the date of enactment of this Act—
7 (1) the Secretary may not issue a right-of-way
8 for wind or solar energy development on Federal land
9 unless—
10 (A) an onshore lease sale has been held dur-
11 ing the 120-day period ending on the date of the
12 issuance of the right-of-way for wind or solar en-
13 ergy development; and
14 (B) the sum total of acres offered for lease
15 in onshore lease sales during the 1-year period
16 ending on the date of the issuance of the right-
17 of-way for wind or solar energy development is
18 not less than the lesser of—
19 (i) 2,000,000 acres; and
20 (ii) 50 percent of the acreage for which
21 expressions of interest have been submitted
22 for lease sales during that period; and
23 (2) the Secretary may not issue a lease for off-
24 shore wind development under section 8(p)(1)(C) of
† HR 5376 EAS
656
1 the Outer Continental Shelf Lands Act (43 U.S.C.
2 1337(p)(1)(C)) unless—
3 (A) an offshore lease sale has been held dur-
4 ing the 1-year period ending on the date of the
5 issuance of the lease for offshore wind develop-
6 ment; and
7 (B) the sum total of acres offered for lease
8 in offshore lease sales during the 1-year period
9 ending on the date of the issuance of the lease for
10 offshore wind development is not less than
11 60,000,000 acres.
12 (c) SAVINGS.—Except as expressly provided in para-
13 graphs (1) and (2) of subsection (b), nothing in this section
14 supersedes, amends, or modifies existing law.
15 PART 7—UNITED STATES GEOLOGICAL SURVEY
16 SEC. 50271. UNITED STATES GEOLOGICAL SURVEY 3D ELE-
17 VATION PROGRAM.
18 In addition to amounts otherwise available, there is
19 appropriated to the Secretary, acting through the Director
20 of the United States Geological Survey, for fiscal year 2022,
21 out of any money in the Treasury not otherwise appro-
22 priated, $23,500,000, to remain available through Sep-
23 tember 30, 2031, to produce, collect, disseminate, and use
24 3D elevation data.
† HR 5376 EAS
657
1 PART 8—OTHER NATURAL RESOURCES MATTERS
2 SEC. 50281. DEPARTMENT OF THE INTERIOR OVERSIGHT.
3 In addition to amounts otherwise available, there is
4 appropriated to the Secretary for fiscal year 2022, out of
5 any money in the Treasury not otherwise appropriated,
6 $10,000,000, to remain available through September 30,
7 2031, for oversight by the Department of the Interior Office
8 of Inspector General of the Department of the Interior ac-
9 tivities for which funding is appropriated in this subtitle.
10 Subtitle C—Environmental Reviews
11 SEC. 50301. DEPARTMENT OF ENERGY.
12 In addition to amounts otherwise available, there is
13 appropriated to the Secretary of Energy for fiscal year
14 2022, out of any money in the Treasury not otherwise ap-
15 propriated, $115,000,000, to remain available through Sep-
16 tember 30, 2031, to provide for the hiring and training of
17 personnel, the development of programmatic environmental
18 documents, the procurement of technical or scientific serv-
19 ices for environmental reviews, the development of environ-
20 mental data or information systems, stakeholder and com-
21 munity engagement, and the purchase of new equipment for
22 environmental analysis to facilitate timely and efficient en-
23 vironmental reviews and authorizations.
24 SEC. 50302. FEDERAL ENERGY REGULATORY COMMISSION.
25 (a) IN GENERAL.—In addition to amounts otherwise
26 available, there is appropriated to the Federal Energy Reg-
† HR 5376 EAS
658
1 ulatory Commission for fiscal year 2022, out of any money
2 in the Treasury not otherwise appropriated, $100,000,000,
3 to remain available through September 30, 2031, to provide
4 for the hiring and training of personnel, the development
5 of programmatic environmental documents, the procure-
6 ment of technical or scientific services for environmental re-
7 views, the development of environmental data or informa-
8 tion systems, stakeholder and community engagement, and
9 the purchase of new equipment for environmental analysis
10 to facilitate timely and efficient environmental reviews and
11 authorizations.
12 (b) FEES AND CHARGES.—Section 3401(a) of the Om-
13 nibus Budget Reconciliation Act of 1986 (42 U.S.C.
14 7178(a)) shall not apply to the costs incurred by the Federal
15 Energy Regulatory Commission in carrying out this sec-
16 tion.
17 SEC. 50303. DEPARTMENT OF THE INTERIOR.
18 In addition to amounts otherwise available, there is
19 appropriated to the Secretary of the Interior for fiscal year
20 2022, out of any money in the Treasury not otherwise ap-
21 propriated, $150,000,000, to remain available through Sep-
22 tember 30, 2026, to provide for the hiring and training of
23 personnel, the development of programmatic environmental
24 documents, the procurement of technical or scientific serv-
25 ices for environmental reviews, the development of environ-
† HR 5376 EAS
659
1 mental data or information systems, stakeholder and com-
2 munity engagement, and the purchase of new equipment for
3 environmental analysis to facilitate timely and efficient en-
4 vironmental reviews and authorizations by the National
5 Park Service, the Bureau of Land Management, the Bureau
6 of Ocean Energy Management, the Bureau of Reclamation,
7 the Bureau of Safety and Environmental Enforcement, and
8 the Office of Surface Mining Reclamation and Enforcement.
9 TITLE VI—COMMITTEE ON ENVI-
10 RONMENT AND PUBLIC
11 WORKS
12 Subtitle A—Air Pollution
13 SEC. 60101. CLEAN HEAVY-DUTY VEHICLES.
14 The Clean Air Act is amended by inserting after sec-
15 tion 131 of such Act (42 U.S.C. 7431) the following:
16 ‘‘SEC. 132. CLEAN HEAVY-DUTY VEHICLES.
17 ‘‘(a) APPROPRIATIONS.—
18 ‘‘(1) IN GENERAL.—In addition to amounts oth-
19 erwise available, there is appropriated to the Admin-
20 istrator for fiscal year 2022, out of any money in the
21 Treasury not otherwise appropriated, $600,000,000,
22 to remain available until September 30, 2031, to
23 carry out this section.
24 ‘‘(2) NONATTAINMENT AREAS.—In addition to
25 amounts otherwise available, there is appropriated to
† HR 5376 EAS
660
1 the Administrator for fiscal year 2022, out of any
2 money in the Treasury not otherwise appropriated,
3 $400,000,000, to remain available until September
4 30, 2031, to make awards under this section to eligi-
5 ble recipients and to eligible contractors that propose
6 to replace eligible vehicles to serve 1 or more commu-
7 nities located in an air quality area designated pur-
8 suant to section 107 as nonattainment for any air
9 pollutant.
10 ‘‘(3) RESERVATION.—Of the funds appropriated
11 by paragraph (1), the Administrator shall reserve 3
12 percent for administrative costs necessary to carry
13 out this section.
14 ‘‘(b) PROGRAM.—Beginning not later than 180 days
15 after the date of enactment of this section, the Adminis-
16 trator shall implement a program to make awards of grants
17 and rebates to eligible recipients, and to make awards of
18 contracts to eligible contractors for providing rebates, for
19 up to 100 percent of costs for—
20 ‘‘(1) the incremental costs of replacing an eligible
21 vehicle that is not a zero-emission vehicle with a zero-
22 emission vehicle, as determined by the Administrator
23 based on the market value of the vehicles;
† HR 5376 EAS
661
1 ‘‘(2) purchasing, installing, operating, and
2 maintaining infrastructure needed to charge, fuel, or
3 maintain zero-emission vehicles;
4 ‘‘(3) workforce development and training to sup-
5 port the maintenance, charging, fueling, and oper-
6 ation of zero-emission vehicles; and
7 ‘‘(4) planning and technical activities to support
8 the adoption and deployment of zero-emission vehi-
9 cles.
10 ‘‘(c) APPLICATIONS.—To seek an award under this sec-
11 tion, an eligible recipient or eligible contractor shall submit
12 to the Administrator an application at such time, in such
13 manner, and containing such information as the Adminis-
14 trator shall prescribe.
15 ‘‘(d) DEFINITIONS.—For purposes of this section:
16 ‘‘(1) ELIGIBLE CONTRACTOR.—The term ‘eligible
17 contractor’ means a contractor that has the capac-
18 ity—
19 ‘‘(A) to sell, lease, license, or contract for
20 service zero-emission vehicles, or charging or
21 other equipment needed to charge, fuel, or main-
22 tain zero-emission vehicles, to individuals or en-
23 tities that own, lease, license, or contract for
24 service an eligible vehicle; or
† HR 5376 EAS
662
1 ‘‘(B) to arrange financing for such a sale,
2 lease, license, or contract for service.
3 ‘‘(2) ELIGIBLE RECIPIENT.—The term ‘eligible
4 recipient’ means—
5 ‘‘(A) a State;
6 ‘‘(B) a municipality;
7 ‘‘(C) an Indian tribe; or
8 ‘‘(D) a nonprofit school transportation asso-
9 ciation.
10 ‘‘(3) ELIGIBLE VEHICLE.—The term ‘eligible ve-
11 hicle’ means a Class 6 or Class 7 heavy-duty vehicle
12 as defined in section 1037.801 of title 40, Code of
13 Federal Regulations (as in effect on the date of enact-
14 ment of this section).
15 ‘‘(4) GREENHOUSE GAS.—The term ‘greenhouse
16 gas’ means the air pollutants carbon dioxide,
17 hydrofluorocarbons, methane, nitrous oxide,
18 perfluorocarbons, and sulfur hexafluoride.
19 ‘‘(5) ZERO-EMISSION VEHICLE.—The term ‘zero-
20 emission vehicle’ means a vehicle that has a
21 drivetrain that produces, under any possible oper-
22 ational mode or condition, zero exhaust emissions
23 of—
† HR 5376 EAS
663
1 ‘‘(A) any air pollutant that is listed pursu-
2 ant to section 108(a) (or any precursor to such
3 an air pollutant); and
4 ‘‘(B) any greenhouse gas.’’.
5 SEC. 60102. GRANTS TO REDUCE AIR POLLUTION AT PORTS.
6 The Clean Air Act is amended by inserting after sec-
7 tion 132 of such Act, as added by section 60101 of this Act,
8 the following:
9 ‘‘SEC. 133. GRANTS TO REDUCE AIR POLLUTION AT PORTS.
10 ‘‘(a) APPROPRIATIONS.—
11 ‘‘(1) GENERAL ASSISTANCE.—In addition to
12 amounts otherwise available, there is appropriated to
13 the Administrator for fiscal year 2022, out of any
14 money in the Treasury not otherwise appropriated,
15 $2,250,000,000, to remain available until September
16 30, 2027, to award rebates and grants to eligible re-
17 cipients on a competitive basis—
18 ‘‘(A) to purchase or install zero-emission
19 port equipment or technology for use at, or to di-
20 rectly serve, one or more ports;
21 ‘‘(B) to conduct any relevant planning or
22 permitting in connection with the purchase or
23 installation of such zero-emission port equipment
24 or technology; and
† HR 5376 EAS
664
1 ‘‘(C) to develop qualified climate action
2 plans.
3 ‘‘(2) NONATTAINMENT AREAS.—In addition to
4 amounts otherwise available, there is appropriated to
5 the Administrator for fiscal year 2022, out of any
6 money in the Treasury not otherwise appropriated,
7 $750,000,000, to remain available until September
8 30, 2027, to award rebates and grants to eligible re-
9 cipients to carry out activities described in paragraph
10 (1) with respect to ports located in air quality areas
11 designated pursuant to section 107 as nonattainment
12 for an air pollutant.
13 ‘‘(b) LIMITATION.—Funds awarded under this section
14 shall not be used by any recipient or subrecipient to pur-
15 chase or install zero-emission port equipment or technology
16 that will not be located at, or directly serve, the one or more
17 ports involved.
18 ‘‘(c) ADMINISTRATION OF FUNDS.—Of the funds made
19 available by this section, the Administrator shall reserve 2
20 percent for administrative costs necessary to carry out this
21 section.
22 ‘‘(d) DEFINITIONS.—In this section:
23 ‘‘(1) ELIGIBLE RECIPIENT.—The term ‘eligible
24 recipient’ means—
25 ‘‘(A) a port authority;
† HR 5376 EAS
665
1 ‘‘(B) a State, regional, local, or Tribal
2 agency that has jurisdiction over a port author-
3 ity or a port;
4 ‘‘(C) an air pollution control agency; or
5 ‘‘(D) a private entity that—
6 ‘‘(i) applies for a grant under this sec-
7 tion in partnership with an entity described
8 in any of subparagraphs (A) through (C);
9 and
10 ‘‘(ii) owns, operates, or uses the facili-
11 ties, cargo-handling equipment, transpor-
12 tation equipment, or related technology of a
13 port.
14 ‘‘(2) GREENHOUSE GAS.—The term ‘greenhouse
15 gas’ means the air pollutants carbon dioxide,
16 hydrofluorocarbons, methane, nitrous oxide,
17 perfluorocarbons, and sulfur hexafluoride.
18 ‘‘(3) QUALIFIED CLIMATE ACTION PLAN.—The
19 term ‘qualified climate action plan’ means a detailed
20 and strategic plan that—
21 ‘‘(A) establishes goals, implementation strat-
22 egies, and accounting and inventory practices to
23 reduce emissions at one or more ports of—
24 ‘‘(i) greenhouse gases;
† HR 5376 EAS
666
1 ‘‘(ii) an air pollutant that is listed
2 pursuant to section 108(a) (or any pre-
3 cursor to such an air pollutant); and
4 ‘‘(iii) hazardous air pollutants;
5 ‘‘(B) includes a strategy to collaborate with,
6 communicate with, and address potential effects
7 on low-income and disadvantaged near-port
8 communities and other stakeholders that may be
9 affected by implementation of the plan; and
10 ‘‘(C) describes how an eligible recipient has
11 implemented or will implement measures to in-
12 crease the resilience of the one or more ports in-
13 volved.
14 ‘‘(4) ZERO-EMISSION PORT EQUIPMENT OR
15 TECHNOLOGY.—The term ‘zero-emission port equip-
16 ment or technology’ means human-operated equip-
17 ment or human-maintained technology that—
18 ‘‘(A) produces zero emissions of any air pol-
19 lutant that is listed pursuant to section 108(a)
20 (or any precursor to such an air pollutant) and
21 any greenhouse gas other than water vapor; or
22 ‘‘(B) captures 100 percent of the emissions
23 described in subparagraph (A) that are produced
24 by an ocean-going vessel at berth.’’.
† HR 5376 EAS
667
1 SEC. 60103. GREENHOUSE GAS REDUCTION FUND.
2 The Clean Air Act is amended by inserting after sec-
3 tion 133 of such Act, as added by section 60102 of this Act,
4 the following:
5 ‘‘SEC. 134. GREENHOUSE GAS REDUCTION FUND.
6 ‘‘(a) APPROPRIATIONS.—
7 ‘‘(1) ZERO-EMISSION TECHNOLOGIES.—In addi-
8 tion to amounts otherwise available, there is appro-
9 priated to the Administrator for fiscal year 2022, out
10 of any money in the Treasury not otherwise appro-
11 priated, $7,000,000,000, to remain available until
12 September 30, 2024, to make grants, on a competitive
13 basis and beginning not later than 180 calendar days
14 after the date of enactment of this section, to States,
15 municipalities, Tribal governments, and eligible re-
16 cipients for the purposes of providing grants, loans,
17 or other forms of financial assistance, as well as tech-
18 nical assistance, to enable low-income and disadvan-
19 taged communities to deploy or benefit from zero-
20 emission technologies, including distributed tech-
21 nologies on residential rooftops, and to carry out
22 other greenhouse gas emission reduction activities, as
23 determined appropriate by the Administrator in ac-
24 cordance with this section.
25 ‘‘(2) GENERAL ASSISTANCE.—In addition to
26 amounts otherwise available, there is appropriated to
† HR 5376 EAS
668
1 the Administrator for fiscal year 2022, out of any
2 money in the Treasury not otherwise appropriated,
3 $11,970,000,000, to remain available until September
4 30, 2024, to make grants, on a competitive basis and
5 beginning not later than 180 calendar days after the
6 date of enactment of this section, to eligible recipients
7 for the purposes of providing financial assistance and
8 technical assistance in accordance with subsection (b).
9 ‘‘(3) LOW-INCOME AND DISADVANTAGED COMMU-
10 NITIES.—In addition to amounts otherwise available,
11 there is appropriated to the Administrator for fiscal
12 year 2022, out of any money in the Treasury not oth-
13 erwise appropriated, $8,000,000,000, to remain avail-
14 able until September 30, 2024, to make grants, on a
15 competitive basis and beginning not later than 180
16 calendar days after the date of enactment of this sec-
17 tion, to eligible recipients for the purposes of pro-
18 viding financial assistance and technical assistance
19 in low-income and disadvantaged communities in ac-
20 cordance with subsection (b).
21 ‘‘(4) ADMINISTRATIVE COSTS.—In addition to
22 amounts otherwise available, there is appropriated to
23 the Administrator for fiscal year 2022, out of any
24 money in the Treasury not otherwise appropriated,
25 $30,000,000, to remain available until September 30,
† HR 5376 EAS
669
1 2031, for the administrative costs necessary to carry
2 out activities under this section.
3 ‘‘(b) USE OF FUNDS.—An eligible recipient that re-
4 ceives a grant pursuant to subsection (a) shall use the grant
5 in accordance with the following:
6 ‘‘(1) DIRECT INVESTMENT.—The eligible recipi-
7 ent shall—
8 ‘‘(A) provide financial assistance to quali-
9 fied projects at the national, regional, State, and
10 local levels;
11 ‘‘(B) prioritize investment in qualified
12 projects that would otherwise lack access to fi-
13 nancing; and
14 ‘‘(C) retain, manage, recycle, and monetize
15 all repayments and other revenue received from
16 fees, interest, repaid loans, and all other types of
17 financial assistance provided using grant funds
18 under this section to ensure continued oper-
19 ability.
20 ‘‘(2) INDIRECT INVESTMENT.—The eligible re-
21 cipient shall provide funding and technical assistance
22 to establish new or support existing public, quasi-pub-
23 lic, not-for-profit, or nonprofit entities that provide
24 financial assistance to qualified projects at the State,
25 local, territorial, or Tribal level or in the District of
† HR 5376 EAS
670
1 Columbia, including community- and low-income-fo-
2 cused lenders and capital providers.
3 ‘‘(c) DEFINITIONS.—In this section:
4 ‘‘(1) ELIGIBLE RECIPIENT.—The term ‘eligible
5 recipient’ means a nonprofit organization that—
6 ‘‘(A) is designed to provide capital, leverage
7 private capital, and provide other forms of fi-
8 nancial assistance for the rapid deployment of
9 low- and zero-emission products, technologies,
10 and services;
11 ‘‘(B) does not take deposits other than de-
12 posits from repayments and other revenue re-
13 ceived from financial assistance provided using
14 grant funds under this section;
15 ‘‘(C) is funded by public or charitable con-
16 tributions; and
17 ‘‘(D) invests in or finances projects alone or
18 in conjunction with other investors.
19 ‘‘(2) GREENHOUSE GAS.—The term ‘greenhouse
20 gas’ means the air pollutants carbon dioxide,
21 hydrofluorocarbons, methane, nitrous oxide,
22 perfluorocarbons, and sulfur hexafluoride.
23 ‘‘(3) QUALIFIED PROJECT.—The term ‘qualified
24 project’ includes any project, activity, or technology
25 that—
† HR 5376 EAS
671
1 ‘‘(A) reduces or avoids greenhouse gas emis-
2 sions and other forms of air pollution in part-
3 nership with, and by leveraging investment from,
4 the private sector; or
5 ‘‘(B) assists communities in the efforts of
6 those communities to reduce or avoid greenhouse
7 gas emissions and other forms of air pollution.
8 ‘‘(4) ZERO-EMISSION TECHNOLOGY.—The term
9 ‘zero-emission technology’ means any technology that
10 produces zero emissions of—
11 ‘‘(A) any air pollutant that is listed pursu-
12 ant to section 108(a) (or any precursor to such
13 an air pollutant); and
14 ‘‘(B) any greenhouse gas.’’.
15 SEC. 60104. DIESEL EMISSIONS REDUCTIONS.
16 (a) GOODS MOVEMENT.—In addition to amounts oth-
17 erwise available, there is appropriated to the Administrator
18 of the Environmental Protection Agency for fiscal year
19 2022, out of any money in the Treasury not otherwise ap-
20 propriated, $60,000,000, to remain available until Sep-
21 tember 30, 2031, for grants, rebates, and loans under section
22 792 of the Energy Policy Act of 2005 (42 U.S.C. 16132)
23 to identify and reduce diesel emissions resulting from goods
24 movement facilities, and vehicles servicing goods movement
25 facilities, in low-income and disadvantaged communities to
† HR 5376 EAS
672
1 address the health impacts of such emissions on such com-
2 munities.
3 (b) ADMINISTRATIVE COSTS.—The Administrator of
4 the Environmental Protection Agency shall reserve 2 per-
5 cent of the amounts made available under this section for
6 the administrative costs necessary to carry out activities
7 pursuant to this section.
8 SEC. 60105. FUNDING TO ADDRESS AIR POLLUTION.
9 (a) FENCELINE AIR MONITORING AND SCREENING AIR
10 MONITORING.—In addition to amounts otherwise available,
11 there is appropriated to the Administrator of the Environ-
12 mental Protection Agency for fiscal year 2022, out of any
13 money in the Treasury not otherwise appropriated,
14 $117,500,000, to remain available until September 30,
15 2031, for grants and other activities authorized under sub-
16 sections (a) through (c) of section 103 and section 105 of
17 the Clean Air Act (42 U.S.C. 7403(a)–(c), 7405) to deploy,
18 integrate, support, and maintain fenceline air monitoring,
19 screening air monitoring, national air toxics trend stations,
20 and other air toxics and community monitoring.
21 (b) MULTIPOLLUTANT MONITORING STATIONS.—In
22 addition to amounts otherwise available, there is appro-
23 priated to the Administrator of the Environmental Protec-
24 tion Agency for fiscal year 2022, out of any money in the
25 Treasury not otherwise appropriated, $50,000,000, to re-
† HR 5376 EAS
673
1 main available until September 30, 2031, for grants and
2 other activities authorized under subsections (a) through (c)
3 of section 103 and section 105 of the Clean Air Act (42
4 U.S.C. 7403(a)–(c), 7405)—
5 (1) to expand the national ambient air quality
6 monitoring network with new multipollutant moni-
7 toring stations; and
8 (2) to replace, repair, operate, and maintain ex-
9 isting monitors.
10 (c) AIR QUALITY SENSORS IN LOW-INCOME AND DIS-
11 ADVANTAGED COMMUNITIES.—In addition to amounts oth-
12 erwise available, there is appropriated to the Administrator
13 of the Environmental Protection Agency for fiscal year
14 2022, out of any money in the Treasury not otherwise ap-
15 propriated, $3,000,000, to remain available until Sep-
16 tember 30, 2031, for grants and other activities authorized
17 under subsections (a) through (c) of section 103 and section
18 105 of the Clean Air Act (42 U.S.C. 7403(a)–(c), 7405) to
19 deploy, integrate, and operate air quality sensors in low-
20 income and disadvantaged communities.
21 (d) EMISSIONS FROM WOOD HEATERS.—In addition
22 to amounts otherwise available, there is appropriated to the
23 Administrator of the Environmental Protection Agency for
24 fiscal year 2022, out of any money in the Treasury not
25 otherwise appropriated, $15,000,000, to remain available
† HR 5376 EAS
674
1 until September 30, 2031, for grants and other activities
2 authorized under subsections (a) through (c) of section 103
3 and section 105 of the Clean Air Act (42 U.S.C. 7403(a)–
4 (c), 7405) for testing and other agency activities to address
5 emissions from wood heaters.
6 (e) METHANE MONITORING.—In addition to amounts
7 otherwise available, there is appropriated to the Adminis-
8 trator of the Environmental Protection Agency for fiscal
9 year 2022, out of any money in the Treasury not otherwise
10 appropriated, $20,000,000, to remain available until Sep-
11 tember 30, 2031, for grants and other activities authorized
12 under subsections (a) through (c) of section 103 and section
13 105 of the Clean Air Act (42 U.S.C. 7403(a)–(c), 7405) for
14 monitoring emissions of methane.
15 (f) CLEAN AIR ACT GRANTS.—In addition to amounts
16 otherwise available, there is appropriated to the Adminis-
17 trator of the Environmental Protection Agency for fiscal
18 year 2022, out of any money in the Treasury not otherwise
19 appropriated, $25,000,000, to remain available until Sep-
20 tember 30, 2031, for grants and other activities authorized
21 under subsections (a) through (c) of section 103 and section
22 105 of the Clean Air Act (42 U.S.C. 7403(a)–(c), 7405).
23 (g) GREENHOUSE GAS AND ZERO-EMISSION STAND-
24 ARDS FOR MOBILE SOURCES.—In addition to amounts oth-
25 erwise available, there is appropriated to the Administrator
† HR 5376 EAS
675
1 of the Environmental Protection Agency for fiscal year
2 2022, out of any money in the Treasury not otherwise ap-
3 propriated, $5,000,000, to remain available until Sep-
4 tember 30, 2031, to provide grants to States to adopt and
5 implement greenhouse gas and zero-emission standards for
6 mobile sources pursuant to section 177 of the Clean Air Act
7 (42 U.S.C. 7507).
8 (h) DEFINITION OF GREENHOUSE GAS.—In this sec-
9 tion, the term ‘‘greenhouse gas’’ means the air pollutants
10 carbon dioxide, hydrofluorocarbons, methane, nitrous oxide,
11 perfluorocarbons, and sulfur hexafluoride.
12 SEC. 60106. FUNDING TO ADDRESS AIR POLLUTION AT
13 SCHOOLS.
14 (a) IN GENERAL.—In addition to amounts otherwise
15 available, there is appropriated to the Administrator of the
16 Environmental Protection Agency for fiscal year 2022, out
17 of any money in the Treasury not otherwise appropriated,
18 $37,500,000, to remain available until September 30, 2031,
19 for grants and other activities to monitor and reduce green-
20 house gas emissions and other air pollutants at schools in
21 low-income and disadvantaged communities under sub-
22 sections (a) through (c) of section 103 of the Clean Air Act
23 (42 U.S.C. 7403(a)–(c)) and section 105 of that Act (42
24 U.S.C. 7405).
† HR 5376 EAS
676
1 (b) TECHNICAL ASSISTANCE.—In addition to amounts
2 otherwise available, there is appropriated to the Adminis-
3 trator of the Environmental Protection Agency for fiscal
4 year 2022, out of any money in the Treasury not otherwise
5 appropriated, $12,500,000, to remain available until Sep-
6 tember 30, 2031, for providing technical assistance to
7 schools in low-income and disadvantaged communities
8 under subsections (a) through (c) of section 103 of the Clean
9 Air Act (42 U.S.C. 7403(a)–(c)) and section 105 of that
10 Act (42 U.S.C. 7405)—
11 (1) to address environmental issues;
12 (2) to develop school environmental quality plans
13 that include standards for school building, design,
14 construction, and renovation; and
15 (3) to identify and mitigate ongoing air pollu-
16 tion hazards.
17 (c) DEFINITION OF GREENHOUSE GAS.—In this sec-
18 tion, the term ‘‘greenhouse gas’’ means the air pollutants
19 carbon dioxide, hydrofluorocarbons, methane, nitrous oxide,
20 perfluorocarbons, and sulfur hexafluoride.
21 SEC. 60107. LOW EMISSIONS ELECTRICITY PROGRAM.
22 The Clean Air Act is amended by inserting after sec-
23 tion 134 of such Act, as added by section 60103 of this Act,
24 the following:
† HR 5376 EAS
677
1 ‘‘SEC. 135. LOW EMISSIONS ELECTRICITY PROGRAM.
2 ‘‘(a) APPROPRIATION.—In addition to amounts other-
3 wise available, there is appropriated to the Administrator
4 for fiscal year 2022, out of any money in the Treasury not
5 otherwise appropriated, to remain available until Sep-
6 tember 30, 2031—
7 ‘‘(1) $17,000,000 for consumer-related education
8 and partnerships with respect to reductions in green-
9 house gas emissions that result from domestic elec-
10 tricity generation and use;
11 ‘‘(2) $17,000,000 for education, technical assist-
12 ance, and partnerships within low-income and dis-
13 advantaged communities with respect to reductions in
14 greenhouse gas emissions that result from domestic
15 electricity generation and use;
16 ‘‘(3) $17,000,000 for industry-related outreach,
17 technical assistance, and partnerships with respect to
18 reductions in greenhouse gas emissions that result
19 from domestic electricity generation and use;
20 ‘‘(4) $17,000,000 for outreach and technical as-
21 sistance to, and partnerships with, State, Tribal, and
22 local governments with respect to reductions in green-
23 house gas emissions that result from domestic elec-
24 tricity generation and use;
25 ‘‘(5) $1,000,000 to assess, not later than 1 year
26 after the date of enactment of this section, the reduc-
† HR 5376 EAS
678
1 tions in greenhouse gas emissions that result from
2 changes in domestic electricity generation and use
3 that are anticipated to occur on an annual basis
4 through fiscal year 2031; and
5 ‘‘(6) $18,000,000 to ensure that reductions in
6 greenhouse gas emissions are achieved through use of
7 the existing authorities of this Act, incorporating the
8 assessment under paragraph (5).
9 ‘‘(b) ADMINISTRATION OF FUNDS.—Of the amounts
10 made available under subsection (a), the Administrator
11 shall reserve 2 percent for the administrative costs necessary
12 to carry out activities pursuant to that subsection.
13 ‘‘(c) DEFINITION OF GREENHOUSE GAS.—In this sec-
14 tion, the term ‘greenhouse gas’ means the air pollutants car-
15 bon dioxide, hydrofluorocarbons, methane, nitrous oxide,
16 perfluorocarbons, and sulfur hexafluoride.’’.
17 SEC. 60108. FUNDING FOR SECTION 211(O) OF THE CLEAN
18 AIR ACT.
19 (a) TEST AND PROTOCOL DEVELOPMENT.—In addi-
20 tion to amounts otherwise available, there is appropriated
21 to the Administrator of the Environmental Protection Agen-
22 cy for fiscal year 2022, out of any money in the Treasury
23 not otherwise appropriated, $5,000,000, to remain available
24 until September 30, 2031, to carry out section 211(o) of
25 the Clean Air Act (42 U.S.C. 7545(o)) with respect to—
† HR 5376 EAS
679
1 (1) the development and establishment of tests
2 and protocols regarding the environmental and public
3 health effects of a fuel or fuel additive;
4 (2) internal and extramural data collection and
5 analyses to regularly update applicable regulations,
6 guidance, and procedures for determining lifecycle
7 greenhouse gas emissions of a fuel; and
8 (3) the review, analysis, and evaluation of the
9 impacts of all transportation fuels, including fuel
10 lifecycle implications, on the general public and on
11 low-income and disadvantaged communities.
12 (b) INVESTMENTS IN ADVANCED BIOFUELS.—In addi-
13 tion to amounts otherwise available, there is appropriated
14 to the Administrator of the Environmental Protection Agen-
15 cy for fiscal year 2022, out of any money in the Treasury
16 not otherwise appropriated, $10,000,000, to remain avail-
17 able until September 30, 2031, for new grants to industry
18 and other related activities under section 211(o) of the
19 Clean Air Act (42 U.S.C. 7545(o)) to support investments
20 in advanced biofuels.
21 (c) DEFINITION OF GREENHOUSE GAS.—In this sec-
22 tion, the term ‘‘greenhouse gas’’ means the air pollutants
23 carbon dioxide, hydrofluorocarbons, methane, nitrous oxide,
24 perfluorocarbons, and sulfur hexafluoride.
† HR 5376 EAS
680
1 SEC. 60109. FUNDING FOR IMPLEMENTATION OF THE AMER-
2 ICAN INNOVATION AND MANUFACTURING
3 ACT.
4 (a) APPROPRIATIONS.—
5 (1) IN GENERAL.—In addition to amounts other-
6 wise available, there is appropriated to the Adminis-
7 trator of the Environmental Protection Agency for fis-
8 cal year 2022, out of any money in the Treasury not
9 otherwise appropriated, $20,000,000, to remain avail-
10 able until September 30, 2026, to carry out sub-
11 sections (a) through (i) and subsection (k) of section
12 103 of division S of Public Law 116–260 (42 U.S.C.
13 7675).
14 (2) IMPLEMENTATION AND COMPLIANCE
15 TOOLS.—In addition to amounts otherwise available,
16 there is appropriated to the Administrator of the En-
17 vironmental Protection Agency for fiscal year 2022,
18 out of any money in the Treasury not otherwise ap-
19 propriated, $3,500,000, to remain available until
20 September 30, 2026, to deploy new implementation
21 and compliance tools to carry out subsections (a)
22 through (i) and subsection (k) of section 103 of divi-
23 sion S of Public Law 116–260 (42 U.S.C. 7675).
24 (3) COMPETITIVE GRANTS.—In addition to
25 amounts otherwise available, there is appropriated to
26 the Administrator of the Environmental Protection
† HR 5376 EAS
681
1 Agency for fiscal year 2022, out of any money in the
2 Treasury not otherwise appropriated, $15,000,000, to
3 remain available until September 30, 2026, for com-
4 petitive grants for reclaim and innovative destruction
5 technologies under subsections (a) through (i) and
6 subsection (k) of section 103 of division S of Public
7 Law 116–260 (42 U.S.C. 7675).
8 (b) ADMINISTRATION OF FUNDS.—Of the funds made
9 available pursuant to subsection (a)(3), the Administrator
10 of the Environmental Protection Agency shall reserve 5 per-
11 cent for administrative costs necessary to carry out activi-
12 ties pursuant to such subsection.
13 SEC. 60110. FUNDING FOR ENFORCEMENT TECHNOLOGY
14 AND PUBLIC INFORMATION.
15 (a) COMPLIANCE MONITORING.—In addition to
16 amounts otherwise available, there is appropriated to the
17 Administrator of the Environmental Protection Agency for
18 fiscal year 2022, out of any money in the Treasury not
19 otherwise appropriated, $18,000,000, to remain available
20 until September 30, 2031, to update the Integrated Compli-
21 ance Information System of the Environmental Protection
22 Agency and any associated systems, necessary information
23 technology infrastructure, or public access software tools to
24 ensure access to compliance data and related information.
† HR 5376 EAS
682
1 (b) COMMUNICATIONS WITH ICIS.—In addition to
2 amounts otherwise available, there is appropriated to the
3 Administrator of the Environmental Protection Agency for
4 fiscal year 2022, out of any money in the Treasury not
5 otherwise appropriated, $3,000,000, to remain available
6 until September 30, 2031, for grants to States, Indian
7 tribes, and air pollution control agencies (as such terms are
8 defined in section 302 of the Clean Air Act (42 U.S.C.
9 7602)) to update their systems to ensure communication
10 with the Integrated Compliance Information System of the
11 Environmental Protection Agency and any associated sys-
12 tems.
13 (c) INSPECTION SOFTWARE.—In addition to amounts
14 otherwise available, there is appropriated to the Adminis-
15 trator of the Environmental Protection Agency for fiscal
16 year 2022, out of any money in the Treasury not otherwise
17 appropriated, $4,000,000, to remain available until Sep-
18 tember 30, 2031—
19 (1) to acquire or update inspection software for
20 use by the Environmental Protection Agency, States,
21 Indian tribes, and air pollution control agencies (as
22 such terms are defined in section 302 of the Clean Air
23 Act (42 U.S.C. 7602)); or
24 (2) to acquire necessary devices on which to run
25 such inspection software.
† HR 5376 EAS
683
1 SEC. 60111. GREENHOUSE GAS CORPORATE REPORTING.
2 (a) IN GENERAL.—In addition to amounts otherwise
3 available, there is appropriated to the Administrator of the
4 Environmental Protection Agency for fiscal year 2022, out
5 of any money in the Treasury not otherwise appropriated,
6 $5,000,000, to remain available until September 30, 2031,
7 for the Environmental Protection Agency to support—
8 (1) enhanced standardization and transparency
9 of corporate climate action commitments and plans to
10 reduce greenhouse gas emissions;
11 (2) enhanced transparency regarding progress to-
12 ward meeting such commitments and implementing
13 such plans; and
14 (3) progress toward meeting such commitments
15 and implementing such plans.
16 (b) DEFINITION OF GREENHOUSE GAS.—In this sec-
17 tion, the term ‘‘greenhouse gas’’ means the air pollutants
18 carbon dioxide, hydrofluorocarbons, methane, nitrous oxide,
19 perfluorocarbons, and sulfur hexafluoride.
20 SEC. 60112. ENVIRONMENTAL PRODUCT DECLARATION AS-
21 SISTANCE.
22 (a) IN GENERAL.—In addition to amounts otherwise
23 available, there is appropriated to the Administrator of the
24 Environmental Protection Agency for fiscal year 2022, out
25 of any money in the Treasury not otherwise appropriated,
26 $250,000,000, to remain available until September 30,
† HR 5376 EAS
684
1 2031, to develop and carry out a program to support the
2 development, enhanced standardization and transparency,
3 and reporting criteria for environmental product declara-
4 tions that include measurements of the embodied greenhouse
5 gas emissions of the material or product associated with
6 all relevant stages of production, use, and disposal, and con-
7 form with international standards, for construction mate-
8 rials and products by—
9 (1) providing grants to businesses that manufac-
10 ture construction materials and products for devel-
11 oping and verifying environmental product declara-
12 tions, and to States, Indian Tribes, and nonprofit or-
13 ganizations that will support such businesses;
14 (2) providing technical assistance to businesses
15 that manufacture construction materials and products
16 in developing and verifying environmental product
17 declarations, and to States, Indian Tribes, and non-
18 profit organizations that will support such businesses;
19 and
20 (3) carrying out other activities that assist in
21 measuring, reporting, and steadily reducing the quan-
22 tity of embodied carbon of construction materials and
23 products.
24 (b) ADMINISTRATIVE COSTS.—Of the amounts made
25 available under this section, the Administrator of the Envi-
† HR 5376 EAS
685
1 ronmental Protection Agency shall reserve 5 percent for ad-
2 ministrative costs necessary to carry out this section.
3 (c) DEFINITIONS.—In this section:
4 (1) GREENHOUSE GAS.—The term ‘‘greenhouse
5 gas’’ means the air pollutants carbon dioxide,
6 hydrofluorocarbons, methane, nitrous oxide,
7 perfluorocarbons, and sulfur hexafluoride.
8 (2) STATE.—The term ‘‘State’’ has the meaning
9 given to that term in section 302(d) of the Clean Air
10 Act (42 U.S.C. 7602(d)).
11 SEC. 60113. METHANE EMISSIONS REDUCTION PROGRAM.
12 The Clean Air Act is amended by inserting after sec-
13 tion 135 of such Act, as added by section 60107 of this Act,
14 the following:
15 ‘‘SEC. 136. METHANE EMISSIONS AND WASTE REDUCTION
16 INCENTIVE PROGRAM FOR PETROLEUM AND
17 NATURAL GAS SYSTEMS.
18 ‘‘(a) INCENTIVES FOR METHANE MITIGATION AND
19 MONITORING.—In addition to amounts otherwise available,
20 there is appropriated to the Administrator for fiscal year
21 2022, out of any money in the Treasury not otherwise ap-
22 propriated, $850,000,000, to remain available until Sep-
23 tember 30, 2028—
24 ‘‘(1) for grants, rebates, contracts, loans, and
25 other activities of the Environmental Protection Agen-
† HR 5376 EAS
686
1 cy for the purposes of providing financial and tech-
2 nical assistance to owners and operators of applicable
3 facilities to prepare and submit greenhouse gas re-
4 ports under subpart W of part 98 of title 40, Code of
5 Federal Regulations;
6 ‘‘(2) for grants, rebates, contracts, loans, and
7 other activities of the Environmental Protection Agen-
8 cy authorized under subsections (a) through (c) of sec-
9 tion 103 for methane emissions monitoring;
10 ‘‘(3) for grants, rebates, contracts, loans, and
11 other activities of the Environmental Protection Agen-
12 cy for the purposes of providing financial and tech-
13 nical assistance to reduce methane and other green-
14 house gas emissions from petroleum and natural gas
15 systems, mitigate legacy air pollution from petroleum
16 and natural gas systems, and provide funding for—
17 ‘‘(A) improving climate resiliency of com-
18 munities and petroleum and natural gas sys-
19 tems;
20 ‘‘(B) improving and deploying industrial
21 equipment and processes that reduce methane
22 and other greenhouse gas emissions and waste;
23 ‘‘(C) supporting innovation in reducing
24 methane and other greenhouse gas emissions and
25 waste from petroleum and natural gas systems;
† HR 5376 EAS
687
1 ‘‘(D) permanently shutting in and plugging
2 wells on non-Federal land;
3 ‘‘(E) mitigating health effects of methane
4 and other greenhouse gas emissions, and legacy
5 air pollution from petroleum and natural gas
6 systems in low-income and disadvantaged com-
7 munities; and
8 ‘‘(F) supporting environmental restoration;
9 and
10 ‘‘(4) to cover all direct and indirect costs re-
11 quired to administer this section, prepare inventories,
12 gather empirical data, and track emissions.
13 ‘‘(b) INCENTIVES FOR METHANE MITIGATION FROM
14 CONVENTIONAL WELLS.—In addition to amounts otherwise
15 available, there is appropriated to the Administrator for fis-
16 cal year 2022, out of any money in the Treasury not other-
17 wise appropriated, $700,000,000, to remain available until
18 September 30, 2028, for activities described in paragraphs
19 (1) through (4) of subsection (a) at marginal conventional
20 wells.
21 ‘‘(c) WASTE EMISSIONS CHARGE.—The Administrator
22 shall impose and collect a charge on methane emissions that
23 exceed an applicable waste emissions threshold under sub-
24 section (f) from an owner or operator of an applicable facil-
25 ity that reports more than 25,000 metric tons of carbon di-
† HR 5376 EAS
688
1 oxide equivalent of greenhouse gases emitted per year pursu-
2 ant to subpart W of part 98 of title 40, Code of Federal
3 Regulations, regardless of the reporting threshold under that
4 subpart.
5 ‘‘(d) APPLICABLE FACILITY.—For purposes of this sec-
6 tion, the term ‘applicable facility’ means a facility within
7 the following industry segments, as defined in subpart W
8 of part 98 of title 40, Code of Federal Regulations:
9 ‘‘(1) Offshore petroleum and natural gas produc-
10 tion.
11 ‘‘(2) Onshore petroleum and natural gas produc-
12 tion.
13 ‘‘(3) Onshore natural gas processing.
14 ‘‘(4) Onshore natural gas transmission compres-
15 sion.
16 ‘‘(5) Underground natural gas storage.
17 ‘‘(6) Liquefied natural gas storage.
18 ‘‘(7) Liquefied natural gas import and export
19 equipment.
20 ‘‘(8) Onshore petroleum and natural gas gath-
21 ering and boosting.
22 ‘‘(9) Onshore natural gas transmission pipeline.
23 ‘‘(e) CHARGE AMOUNT.—The amount of a charge
24 under subsection (c) for an applicable facility shall be equal
25 to the product obtained by multiplying—
† HR 5376 EAS
689
1 ‘‘(1) the number of metric tons of methane emis-
2 sions reported pursuant to subpart W of part 98 of
3 title 40, Code of Federal Regulations, for the applica-
4 ble facility that exceed the applicable annual waste
5 emissions threshold listed in subsection (f) during the
6 previous reporting period; and
7 ‘‘(2)(A) $900 for emissions reported for calendar
8 year 2024;
9 ‘‘(B) $1,200 for emissions reported for calendar
10 year 2025; or
11 ‘‘(C) $1,500 for emissions reported for calendar
12 year 2026 and each year thereafter.
13 ‘‘(f) WASTE EMISSIONS THRESHOLD.—
14 ‘‘(1) PETROLEUM AND NATURAL GAS PRODUC-
15 TION.—With respect to imposing and collecting the
16 charge under subsection (c) for an applicable facility
17 in an industry segment listed in paragraph (1) or (2)
18 of subsection (d), the Administrator shall impose and
19 collect the charge on the reported metric tons of meth-
20 ane emissions from such facility that exceed—
21 ‘‘(A) 0.20 percent of the natural gas sent to
22 sale from such facility; or
23 ‘‘(B) 10 metric tons of methane per million
24 barrels of oil sent to sale from such facility, if
25 such facility sent no natural gas to sale.
† HR 5376 EAS
690
1 ‘‘(2) NONPRODUCTION PETROLEUM AND NATURAL
2 GAS SYSTEMS.—With respect to imposing and col-
3 lecting the charge under subsection (c) for an applica-
4 ble facility in an industry segment listed in para-
5 graph (3), (6), (7), or (8) of subsection (d), the Ad-
6 ministrator shall impose and collect the charge on the
7 reported metric tons of methane emissions that exceed
8 0.05 percent of the natural gas sent to sale from or
9 through such facility.
10 ‘‘(3) NATURAL GAS TRANSMISSION.—With re-
11 spect to imposing and collecting the charge under sub-
12 section (c) for an applicable facility in an industry
13 segment listed in paragraph (4), (5), or (9) of sub-
14 section (d), the Administrator shall impose and collect
15 the charge on the reported metric tons of methane
16 emissions that exceed 0.11 percent of the natural gas
17 sent to sale from or through such facility.
18 ‘‘(4) COMMON OWNERSHIP OR CONTROL.—In cal-
19 culating the total emissions charge obligation for fa-
20 cilities under common ownership or control, the Ad-
21 ministrator shall allow for the netting of emissions by
22 reducing the total obligation to account for facility
23 emissions levels that are below the applicable thresh-
24 olds within and across all applicable segments identi-
25 fied in subsection (d).
† HR 5376 EAS
691
1 ‘‘(5) EXEMPTION.—Charges shall not be imposed
2 pursuant to paragraph (1) on emissions that exceed
3 the waste emissions threshold specified in such para-
4 graph if such emissions are caused by unreasonable
5 delay, as determined by the Administrator, in envi-
6 ronmental permitting of gathering or transmission
7 infrastructure necessary for offtake of increased vol-
8 ume as a result of methane emissions mitigation im-
9 plementation.
10 ‘‘(6) EXEMPTION FOR REGULATORY COMPLI-
11 ANCE.—
12 ‘‘(A) IN GENERAL.—Charges shall not be
13 imposed pursuant to subsection (c) on an appli-
14 cable facility that is subject to and in compli-
15 ance with methane emissions requirements pur-
16 suant to subsections (b) and (d) of section 111
17 upon a determination by the Administrator
18 that—
19 ‘‘(i) methane emissions standards and
20 plans pursuant to subsections (b) and (d) of
21 section 111 have been approved and are in
22 effect in all States with respect to the appli-
23 cable facilities; and
24 ‘‘(ii) compliance with the requirements
25 described in clause (i) will result in equiva-
† HR 5376 EAS
692
1 lent or greater emissions reductions as
2 would be achieved by the proposed rule of
3 the Administrator entitled ‘Standards of
4 Performance for New, Reconstructed, and
5 Modified Sources and Emissions Guidelines
6 for Existing Sources: Oil and Natural Gas
7 Sector Climate Review’ (86 Fed. Reg. 63110
8 (November 15, 2021)), if such rule had been
9 finalized and implemented.
10 ‘‘(B) RESUMPTION OF CHARGE.—If the con-
11 ditions in clause (i) or (ii) of subparagraph (A)
12 cease to apply after the Administrator has made
13 the determination in that subparagraph, the ap-
14 plicable facility will again be subject to the
15 charge under subsection (c) beginning in the first
16 calendar year in which the conditions in either
17 clause (i) or (ii) of that subparagraph are no
18 longer met.
19 ‘‘(7) PLUGGED WELLS.—Charges shall not be im-
20 posed with respect to the emissions rate from any well
21 that has been permanently shut-in and plugged in the
22 previous year in accordance with all applicable clo-
23 sure requirements, as determined by the Adminis-
24 trator.
† HR 5376 EAS
693
1 ‘‘(g) PERIOD.—The charge under subsection (c) shall
2 be imposed and collected beginning with respect to emis-
3 sions reported for calendar year 2024 and for each year
4 thereafter.
5 ‘‘(h) REPORTING.—Not later than 2 years after the
6 date of enactment of this section, the Administrator shall
7 revise the requirements of subpart W of part 98 of title 40,
8 Code of Federal Regulations, to ensure the reporting under
9 such subpart, and calculation of charges under subsections
10 (e) and (f) of this section, are based on empirical data, in-
11 cluding data collected pursuant to subsection (a)(4), accu-
12 rately reflect the total methane emissions and waste emis-
13 sions from the applicable facilities, and allow owners and
14 operators of applicable facilities to submit empirical emis-
15 sions data, in a manner to be prescribed by the Adminis-
16 trator, to demonstrate the extent to which a charge under
17 subsection (c) is owed.
18 ‘‘(i) DEFINITION OF GREENHOUSE GAS.—In this sec-
19 tion, the term ‘greenhouse gas’ means the air pollutants car-
20 bon dioxide, hydrofluorocarbons, methane, nitrous oxide,
21 perfluorocarbons, and sulfur hexafluoride.’’.
22 SEC. 60114. CLIMATE POLLUTION REDUCTION GRANTS.
23 The Clean Air Act is amended by inserting after sec-
24 tion 136 of such Act, as added by section 60113 of this Act,
25 the following:
† HR 5376 EAS
694
1 ‘‘SEC. 137. GREENHOUSE GAS AIR POLLUTION PLANS AND
2 IMPLEMENTATION GRANTS.
3 ‘‘(a) APPROPRIATIONS.—
4 ‘‘(1) GREENHOUSE GAS AIR POLLUTION PLAN-
5 NING GRANTS.—In addition to amounts otherwise
6 available, there is appropriated to the Administrator
7 for fiscal year 2022, out of any amounts in the Treas-
8 ury not otherwise appropriated, $250,000,000, to re-
9 main available until September 30, 2031, to carry
10 out subsection (b).
11 ‘‘(2) GREENHOUSE GAS AIR POLLUTION IMPLE-
12 MENTATION GRANTS.—In addition to amounts other-
13 wise available, there is appropriated to the Adminis-
14 trator for fiscal year 2022, out of any amounts in the
15 Treasury not otherwise appropriated, $4,750,000,000,
16 to remain available until September 30, 2026, to
17 carry out subsection (c).
18 ‘‘(3) ADMINISTRATIVE COSTS.—Of the funds
19 made available under paragraph (2), the Adminis-
20 trator shall reserve 3 percent for administrative costs
21 necessary to carry out this section, to provide tech-
22 nical assistance to eligible entities, to develop a plan
23 that could be used as a model by grantees in devel-
24 oping a plan under subsection (b), and to model the
25 effects of plans described in this section.
† HR 5376 EAS
695
1 ‘‘(b) GREENHOUSE GAS AIR POLLUTION PLANNING
2 GRANTS.—The Administrator shall make a grant to at least
3 one eligible entity in each State for the costs of developing
4 a plan for the reduction of greenhouse gas air pollution to
5 be submitted with an application for a grant under sub-
6 section (c). Each such plan shall include programs, policies,
7 measures, and projects that will achieve or facilitate the re-
8 duction of greenhouse gas air pollution. Not later than 270
9 days after the date of enactment of this section, the Admin-
10 istrator shall publish a funding opportunity announcement
11 for grants under this subsection.
12 ‘‘(c) GREENHOUSE GAS AIR POLLUTION REDUCTION
13 IMPLEMENTATION GRANTS.—
14 ‘‘(1) IN GENERAL.—The Administrator shall
15 competitively award grants to eligible entities to im-
16 plement plans developed under subsection (b).
17 ‘‘(2) APPLICATION.—To apply for a grant under
18 this subsection, an eligible entity shall submit to the
19 Administrator an application at such time, in such
20 manner, and containing such information as the Ad-
21 ministrator shall require, which such application
22 shall include information regarding the degree to
23 which greenhouse gas air pollution is projected to be
24 reduced in total and with respect to low-income and
25 disadvantaged communities.
† HR 5376 EAS
696
1 ‘‘(3) TERMS AND CONDITIONS.—The Adminis-
2 trator shall make funds available to a grantee under
3 this subsection in such amounts, upon such a sched-
4 ule, and subject to such conditions based on its per-
5 formance in implementing its plan submitted under
6 this section and in achieving projected greenhouse gas
7 air pollution reduction, as determined by the Admin-
8 istrator.
9 ‘‘(d) DEFINITIONS.—In this section:
10 ‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible enti-
11 ty’ means—
12 ‘‘(A) a State;
13 ‘‘(B) an air pollution control agency;
14 ‘‘(C) a municipality;
15 ‘‘(D) an Indian tribe; and
16 ‘‘(E) a group of one or more entities listed
17 in subparagraphs (A) through (D).
18 ‘‘(2) GREENHOUSE GAS.—The term ‘greenhouse
19 gas’ means the air pollutants carbon dioxide,
20 hydrofluorocarbons, methane, nitrous oxide,
21 perfluorocarbons, and sulfur hexafluoride.’’.
22 SEC. 60115. ENVIRONMENTAL PROTECTION AGENCY EFFI-
23 CIENT, ACCURATE, AND TIMELY REVIEWS.
24 In addition to amounts otherwise available, there is
25 appropriated to the Environmental Protection Agency for
† HR 5376 EAS
697
1 fiscal year 2022, out of any money in the Treasury not
2 otherwise appropriated, $40,000,000, to remain available
3 until September 30, 2026, to provide for the development
4 of efficient, accurate, and timely reviews for permitting and
5 approval processes through the hiring and training of per-
6 sonnel, the development of programmatic documents, the
7 procurement of technical or scientific services for reviews,
8 the development of environmental data or information sys-
9 tems, stakeholder and community engagement, the purchase
10 of new equipment for environmental analysis, and the de-
11 velopment of geographic information systems and other
12 analysis tools, techniques, and guidance to improve agency
13 transparency, accountability, and public engagement.
14 SEC. 60116. LOW-EMBODIED CARBON LABELING FOR CON-
15 STRUCTION MATERIALS.
16 (a) IN GENERAL.—In addition to amounts otherwise
17 available, there is appropriated to the Administrator of the
18 Environmental Protection Agency for fiscal year 2022, out
19 of any money in the Treasury not otherwise appropriated,
20 $100,000,000, to remain available until September 30,
21 2026, for necessary administrative costs of the Adminis-
22 trator of the Environmental Protection Agency to carry out
23 this section and to develop and carry out a program, in
24 consultation with the Administrator of the Federal High-
25 way Administration for construction materials used in
† HR 5376 EAS
698
1 transportation projects and the Administrator of General
2 Services for construction materials used for Federal build-
3 ings, to identify and label construction materials and prod-
4 ucts that have substantially lower levels of embodied green-
5 house gas emissions associated with all relevant stages of
6 production, use, and disposal, as compared to estimated in-
7 dustry averages of similar materials or products, as deter-
8 mined by the Administrator of the Environmental Protec-
9 tion Agency, based on—
10 (1) environmental product declarations; or
11 (2) determinations by State agencies, as verified
12 by the Administrator of the Environmental Protection
13 Agency.
14 (b) DEFINITION OF GREENHOUSE GAS.—In this sec-
15 tion, the term ‘‘greenhouse gas’’ means the air pollutants
16 carbon dioxide, hydrofluorocarbons, methane, nitrous oxide,
17 perfluorocarbons, and sulfur hexafluoride.
18 Subtitle B—Hazardous Materials
19 SEC. 60201. ENVIRONMENTAL AND CLIMATE JUSTICE
20 BLOCK GRANTS.
21 The Clean Air Act is amended by inserting after sec-
22 tion 137, as added by subtitle A of this title, the following:
† HR 5376 EAS
699
1 ‘‘SEC. 138. ENVIRONMENTAL AND CLIMATE JUSTICE BLOCK
2 GRANTS.
3 ‘‘(a) APPROPRIATION.—In addition to amounts other-
4 wise available, there is appropriated to the Administrator
5 for fiscal year 2022, out of any money in the Treasury not
6 otherwise appropriated—
7 ‘‘(1) $2,800,000,000 to remain available until
8 September 30, 2026, to award grants for the activities
9 described in subsection (b); and
10 ‘‘(2) $200,000,000 to remain available until Sep-
11 tember 30, 2026, to provide technical assistance to eli-
12 gible entities related to grants awarded under this
13 section.
14 ‘‘(b) GRANTS.—
15 ‘‘(1) IN GENERAL.—The Administrator shall use
16 amounts made available under subsection (a)(1) to
17 award grants for periods of up to 3 years to eligible
18 entities to carry out activities described in paragraph
19 (2) that benefit disadvantaged communities, as de-
20 fined by the Administrator.
21 ‘‘(2) ELIGIBLE ACTIVITIES.—An eligible entity
22 may use a grant awarded under this subsection for—
23 ‘‘(A) community-led air and other pollution
24 monitoring, prevention, and remediation, and
25 investments in low- and zero-emission and resil-
26 ient technologies and related infrastructure and
† HR 5376 EAS
700
1 workforce development that help reduce green-
2 house gas emissions and other air pollutants;
3 ‘‘(B) mitigating climate and health risks
4 from urban heat islands, extreme heat, wood
5 heater emissions, and wildfire events;
6 ‘‘(C) climate resiliency and adaptation;
7 ‘‘(D) reducing indoor toxics and indoor air
8 pollution; or
9 ‘‘(E) facilitating engagement of disadvan-
10 taged communities in State and Federal advi-
11 sory groups, workshops, rulemakings, and other
12 public processes.
13 ‘‘(3) ELIGIBLE ENTITIES.—In this subsection,
14 the term ‘eligible entity’ means—
15 ‘‘(A) a partnership between—
16 ‘‘(i) an Indian tribe, a local govern-
17 ment, or an institution of higher education;
18 and
19 ‘‘(ii) a community-based nonprofit or-
20 ganization;
21 ‘‘(B) a community-based nonprofit organi-
22 zation; or
23 ‘‘(C) a partnership of community-based
24 nonprofit organizations.
† HR 5376 EAS
701
1 ‘‘(c) ADMINISTRATIVE COSTS.—The Administrator
2 shall reserve 7 percent of the amounts made available under
3 subsection (a) for administrative costs to carry out this sec-
4 tion.
5 ‘‘(d) DEFINITION OF GREENHOUSE GAS.—In this sec-
6 tion, the term ‘greenhouse gas’ means the air pollutants car-
7 bon dioxide, hydrofluorocarbons, methane, nitrous oxide,
8 perfluorocarbons, and sulfur hexafluoride.’’.
9 Subtitle C—United States Fish and
10 Wildlife Service
11 SEC. 60301. ENDANGERED SPECIES ACT RECOVERY PLANS.
12 In addition to amounts otherwise available, there is
13 appropriated to the United States Fish and Wildlife Service
14 for fiscal year 2022, out of any money in the Treasury not
15 otherwise appropriated, $125,000,000, to remain available
16 until expended, for the purposes of developing and imple-
17 menting recovery plans under paragraphs (1), (3), and (4)
18 of subsection (f) of section 4 of the Endangered Species Act
19 of 1973 (16 U.S.C. 1533(f)).
20 SEC. 60302. FUNDING FOR THE UNITED STATES FISH AND
21 WILDLIFE SERVICE TO ADDRESS WEATHER
22 EVENTS.
23 (a) IN GENERAL.—In addition to amounts otherwise
24 available, there is appropriated to the United States Fish
25 and Wildlife Service for fiscal year 2022, out of any money
† HR 5376 EAS
702
1 in the Treasury not otherwise appropriated, $121,250,000,
2 to remain available until September 30, 2026, to make di-
3 rect expenditures, award grants, and enter into contracts
4 and cooperative agreements for the purposes of rebuilding
5 and restoring units of the National Wildlife Refuge System
6 and State wildlife management areas by—
7 (1) addressing the threat of invasive species;
8 (2) increasing the resiliency and capacity of
9 habitats and infrastructure to withstand weather
10 events; and
11 (3) reducing the amount of damage caused by
12 weather events.
13 (b) ADMINISTRATIVE COSTS.—In addition to amounts
14 otherwise available, there is appropriated to the United
15 States Fish and Wildlife Service for fiscal year 2022, out
16 of any money in the Treasury not otherwise appropriated,
17 $3,750,000, to remain available until September 30, 2026,
18 for necessary administrative expenses associated with car-
19 rying out this section.
20 Subtitle D—Council on
21 Environmental Quality
22 SEC. 60401. ENVIRONMENTAL AND CLIMATE DATA COLLEC-
23 TION.
24 In addition to amounts otherwise available, there is
25 appropriated to the Chair of the Council on Environmental
† HR 5376 EAS
703
1 Quality for fiscal year 2022, out of any money in the Treas-
2 ury not otherwise appropriated, $32,500,000, to remain
3 available until September 30, 2026—
4 (1) to support data collection efforts relating
5 to—
6 (A) disproportionate negative environ-
7 mental harms and climate impacts; and
8 (B) cumulative impacts of pollution and
9 temperature rise;
10 (2) to establish, expand, and maintain efforts to
11 track disproportionate burdens and cumulative im-
12 pacts and provide academic and workforce support
13 for analytics and informatics infrastructure and data
14 collection systems; and
15 (3) to support efforts to ensure that any map-
16 ping or screening tool is accessible to community-
17 based organizations and community members.
18 SEC. 60402. COUNCIL ON ENVIRONMENTAL QUALITY EFFI-
19 CIENT AND EFFECTIVE ENVIRONMENTAL RE-
20 VIEWS.
21 In addition to amounts otherwise available, there is
22 appropriated to the Chair of the Council on Environmental
23 Quality for fiscal year 2022, out of any money in the Treas-
24 ury not otherwise appropriated, $30,000,000, to remain
25 available until September 30, 2026, to carry out the Council
† HR 5376 EAS
704
1 on Environmental Quality’s functions and for the purposes
2 of training personnel, developing programmatic environ-
3 mental documents, and developing tools, guidance, and
4 techniques to improve stakeholder and community engage-
5 ment.
6 Subtitle E—Transportation and
7 Infrastructure
8 SEC. 60501. NEIGHBORHOOD ACCESS AND EQUITY GRANT
9 PROGRAM.
10 (a) IN GENERAL.—Chapter 1 of title 23, United States
11 Code, is amended by adding at the end the following:
12 ‘‘§ 177. Neighborhood access and equity grant pro-
13 gram
14 ‘‘(a) IN GENERAL.—In addition to amounts otherwise
15 available, there is appropriated for fiscal year 2022, out
16 of any money in the Treasury not otherwise appropriated,
17 $1,893,000,000, to remain available until September 30,
18 2026, to the Administrator of the Federal Highway Admin-
19 istration for competitive grants to eligible entities described
20 in subsection (b)—
21 ‘‘(1) to improve walkability, safety, and afford-
22 able transportation access through projects that are
23 context-sensitive—
24 ‘‘(A) to remove, remediate, or reuse a facil-
25 ity described in subsection (c)(1);
† HR 5376 EAS
705
1 ‘‘(B) to replace a facility described in sub-
2 section (c)(1) with a facility that is at-grade or
3 lower speed;
4 ‘‘(C) to retrofit or cap a facility described
5 in subsection (c)(1);
6 ‘‘(D) to build or improve complete streets,
7 multiuse trails, regional greenways, or active
8 transportation networks and spines; or
9 ‘‘(E) to provide affordable access to essential
10 destinations, public spaces, or transportation
11 links and hubs;
12 ‘‘(2) to mitigate or remediate negative impacts
13 on the human or natural environment resulting from
14 a facility described in subsection (c)(2) in a dis-
15 advantaged or underserved community through—
16 ‘‘(A) noise barriers to reduce impacts result-
17 ing from a facility described in subsection (c)(2);
18 ‘‘(B) technologies, infrastructure, and ac-
19 tivities to reduce surface transportation-related
20 greenhouse gas emissions and other air pollution;
21 ‘‘(C) natural infrastructure, pervious, per-
22 meable, or porous pavement, or protective fea-
23 tures to reduce or manage stormwater run-off re-
24 sulting from a facility described in subsection
25 (c)(2);
† HR 5376 EAS
706
1 ‘‘(D) infrastructure and natural features to
2 reduce or mitigate urban heat island hot spots in
3 the transportation right-of-way or on surface
4 transportation facilities; or
5 ‘‘(E) safety improvements for vulnerable
6 road users; and
7 ‘‘(3) for planning and capacity building activi-
8 ties in disadvantaged or underserved communities
9 to—
10 ‘‘(A) identify, monitor, or assess local and
11 ambient air quality, emissions of transportation
12 greenhouse gases, hot spot areas of extreme heat
13 or elevated air pollution, gaps in tree canopy
14 coverage, or flood prone transportation infra-
15 structure;
16 ‘‘(B) assess transportation equity or pollu-
17 tion impacts and develop local anti-displacement
18 policies and community benefit agreements;
19 ‘‘(C) conduct predevelopment activities for
20 projects eligible under this subsection;
21 ‘‘(D) expand public participation in trans-
22 portation planning by individuals and organiza-
23 tions in disadvantaged or underserved commu-
24 nities; or
† HR 5376 EAS
707
1 ‘‘(E) administer or obtain technical assist-
2 ance related to activities described in this sub-
3 section.
4 ‘‘(b) ELIGIBLE ENTITIES DESCRIBED.—An eligible en-
5 tity referred to in subsection (a) is—
6 ‘‘(1) a State;
7 ‘‘(2) a unit of local government;
8 ‘‘(3) a political subdivision of a State;
9 ‘‘(4) an entity described in section 207(m)(1)(E);
10 ‘‘(5) a territory of the United States;
11 ‘‘(6) a special purpose district or public author-
12 ity with a transportation function;
13 ‘‘(7) a metropolitan planning organization (as
14 defined in section 134(b)(2)); or
15 ‘‘(8) with respect to a grant described in sub-
16 section (a)(3), in addition to an eligible entity de-
17 scribed in paragraphs (1) through (7), a nonprofit or-
18 ganization or institution of higher education that has
19 entered into a partnership with an eligible entity de-
20 scribed in paragraphs (1) through (7).
21 ‘‘(c) FACILITY DESCRIBED.—A facility referred to in
22 subsection (a) is—
23 ‘‘(1) a surface transportation facility for which
24 high speeds, grade separation, or other design factors
† HR 5376 EAS
708
1 create an obstacle to connectivity within a commu-
2 nity; or
3 ‘‘(2) a surface transportation facility which is a
4 source of air pollution, noise, stormwater, or other
5 burden to a disadvantaged or underserved commu-
6 nity.
7 ‘‘(d) INVESTMENT IN ECONOMICALLY DISADVANTAGED
8 COMMUNITIES.—
9 ‘‘(1) IN GENERAL.—In addition to amounts oth-
10 erwise available, there is appropriated for fiscal year
11 2022, out of any money in the Treasury not otherwise
12 appropriated, $1,262,000,000, to remain available
13 until September 30, 2026, to the Administrator of the
14 Federal Highway Administration to provide grants
15 for projects in communities described in paragraph
16 (2) for the same purposes and administered in the
17 same manner as described in subsection (a).
18 ‘‘(2) COMMUNITIES DESCRIBED.—A community
19 referred to in paragraph (1) is a community that—
20 ‘‘(A) is economically disadvantaged, under-
21 served, or located in an area of persistent pov-
22 erty;
23 ‘‘(B) has entered or will enter into a com-
24 munity benefits agreement with representatives
25 of the community;
† HR 5376 EAS
709
1 ‘‘(C) has an anti-displacement policy, a
2 community land trust, or a community advisory
3 board in effect; or
4 ‘‘(D) has demonstrated a plan for employ-
5 ing local residents in the area impacted by the
6 activity or project proposed under this section.
7 ‘‘(e) ADMINISTRATION.—
8 ‘‘(1) IN GENERAL.—A project carried out under
9 subsection (a) or (d) shall be treated as a project on
10 a Federal-aid highway.
11 ‘‘(2) COMPLIANCE WITH EXISTING REQUIRE-
12 MENTS.—Funds made available for a grant under
13 this section and administered by or through a State
14 department of transportation shall be expended in
15 compliance with the U.S. Department of Transpor-
16 tation’s Disadvantaged Business Enterprise Program.
17 ‘‘(f) COST SHARE.—The Federal share of the cost of
18 an activity carried out using a grant awarded under this
19 section shall be not more than 80 percent, except that the
20 Federal share of the cost of a project in a disadvantaged
21 or underserved community may be up to 100 percent.
22 ‘‘(g) TECHNICAL ASSISTANCE.—In addition to
23 amounts otherwise available, there is appropriated for fiscal
24 year 2022, out of any money in the Treasury not otherwise
25 appropriated, $50,000,000, to remain available until Sep-
† HR 5376 EAS
710
1 tember 30, 2026, to the Administrator of the Federal High-
2 way Administration for—
3 ‘‘(1) guidance, technical assistance, templates,
4 training, or tools to facilitate efficient and effective
5 contracting, design, and project delivery by units of
6 local government;
7 ‘‘(2) subgrants to units of local government to
8 build capacity of such units of local government to as-
9 sume responsibilities to deliver surface transportation
10 projects; and
11 ‘‘(3) operations and administration of the Fed-
12 eral Highway Administration.
13 ‘‘(h) LIMITATIONS.—Amounts made available under
14 this section shall not—
15 ‘‘(1) be subject to any restriction or limitation
16 on the total amount of funds available for implemen-
17 tation or execution of programs authorized for Fed-
18 eral-aid highways; and
19 ‘‘(2) be used for a project for additional through
20 travel lanes for single-occupant passenger vehicles.’’.
21 (b) CLERICAL AMENDMENT.—The analysis for chapter
22 1 of title 23, United States Code, is amended by adding
23 at the end the following:
‘‘177. Neighborhood access and equity grant program.’’.
† HR 5376 EAS
711
1 SEC. 60502. ASSISTANCE FOR FEDERAL BUILDINGS.
2 In addition to amounts otherwise available, there is
3 appropriated for fiscal year 2022, out of any money in the
4 Treasury not otherwise appropriated, $250,000,000, to re-
5 main available until September 30, 2031, to be deposited
6 in the Federal Buildings Fund established under section
7 592 of title 40, United States Code, for measures necessary
8 to convert facilities of the Administrator of General Services
9 to high-performance green buildings (as defined in section
10 401 of the Energy Independence and Security Act of 2007
11 (42 U.S.C. 17061)).
12 SEC. 60503. USE OF LOW-CARBON MATERIALS.
13 (a) APPROPRIATION.—In addition to amounts other-
14 wise available, there is appropriated for fiscal year 2022,
15 out of any money in the Treasury not otherwise appro-
16 priated, $2,150,000,000, to remain available until Sep-
17 tember 30, 2026, to be deposited in the Federal Buildings
18 Fund established under section 592 of title 40, United
19 States Code, to acquire and install materials and products
20 for use in the construction or alteration of buildings under
21 the jurisdiction, custody, and control of the General Services
22 Administration that have substantially lower levels of em-
23 bodied greenhouse gas emissions associated with all relevant
24 stages of production, use, and disposal as compared to esti-
25 mated industry averages of similar materials or products,
† HR 5376 EAS
712
1 as determined by the Administrator of the Environmental
2 Protection Agency.
3 (b) DEFINITION OF GREENHOUSE GAS.—In this sec-
4 tion, the term ‘‘greenhouse gas’’ means the air pollutants
5 carbon dioxide, hydrofluorocarbons, methane, nitrous oxide,
6 perfluorocarbons, and sulfur hexafluoride.
7 SEC. 60504. GENERAL SERVICES ADMINISTRATION EMERG-
8 ING TECHNOLOGIES.
9 In addition to amounts otherwise available, there is
10 appropriated to the Administrator of General Services for
11 fiscal year 2022, out of any money in the Treasury not
12 otherwise appropriated, $975,000,000, to remain available
13 until September 30, 2026, to be deposited in the Federal
14 Buildings Fund established under section 592 of title 40,
15 United States Code, for emerging and sustainable tech-
16 nologies, and related sustainability and environmental pro-
17 grams.
18 SEC. 60505. ENVIRONMENTAL REVIEW IMPLEMENTATION
19 FUNDS.
20 (a) IN GENERAL.—Chapter 1 of title 23, United States
21 Code, is further amended by adding at the end the following:
22 ‘‘§ 178. Environmental review implementation funds
23 ‘‘(a) ESTABLISHMENT.—In addition to amounts other-
24 wise available, for fiscal year 2022, there is appropriated
25 to the Administrator, out of any money in the Treasury
† HR 5376 EAS
713
1 not otherwise appropriated, $100,000,000, to remain avail-
2 able until September 30, 2026, for the purpose of facili-
3 tating the development and review of documents for the en-
4 vironmental review process for proposed projects through—
5 ‘‘(1) the provision of guidance, technical assist-
6 ance, templates, training, or tools to facilitate an effi-
7 cient and effective environmental review process for
8 surface transportation projects and any administra-
9 tive expenses of the Federal Highway Administration
10 to conduct activities described in this section; and
11 ‘‘(2) providing funds made available under this
12 subsection to eligible entities—
13 ‘‘(A) to build capacity of such eligible enti-
14 ties to conduct environmental review processes;
15 ‘‘(B) to facilitate the environmental review
16 process for proposed projects by—
17 ‘‘(i) defining the scope or study areas;
18 ‘‘(ii) identifying impacts, mitigation
19 measures, and reasonable alternatives;
20 ‘‘(iii) preparing planning and envi-
21 ronmental studies and other documents
22 prior to and during the environmental re-
23 view process, for potential use in the envi-
24 ronmental review process in accordance
25 with applicable statutes and regulations;
† HR 5376 EAS
714
1 ‘‘(iv) conducting public engagement ac-
2 tivities; and
3 ‘‘(v) carrying out permitting or other
4 activities, as the Administrator determines
5 to be appropriate, to support the timely
6 completion of an environmental review
7 process required for a proposed project; and
8 ‘‘(C) for administrative expenses of the eli-
9 gible entity to conduct any of the activities de-
10 scribed in subparagraphs (A) and (B).
11 ‘‘(b) COST SHARE.—
12 ‘‘(1) IN GENERAL.—The Federal share of the cost
13 of an activity carried out under this section by an el-
14 igible entity shall be not more than 80 percent.
15 ‘‘(2) SOURCE OF FUNDS.—The non-Federal share
16 of the cost of an activity carried out under this sec-
17 tion by an eligible entity may be satisfied using funds
18 made available to the eligible entity under any other
19 Federal, State, or local grant program.
20 ‘‘(c) DEFINITIONS.—In this section:
21 ‘‘(1) ADMINISTRATOR.—The term ‘Adminis-
22 trator’ means the Administrator of the Federal High-
23 way Administration.
24 ‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible enti-
25 ty’ means—
† HR 5376 EAS
715
1 ‘‘(A) a State;
2 ‘‘(B) a unit of local government;
3 ‘‘(C) a political subdivision of a State;
4 ‘‘(D) a territory of the United States;
5 ‘‘(E) an entity described in section
6 207(m)(1)(E);
7 ‘‘(F) a recipient of funds under section 203;
8 or
9 ‘‘(G) a metropolitan planning organization
10 (as defined in section 134(b)(2)).
11 ‘‘(3) ENVIRONMENTAL REVIEW PROCESS.—The
12 term ‘environmental review process’ has the meaning
13 given the term in section 139(a)(5).
14 ‘‘(4) PROPOSED PROJECT.—The term ‘proposed
15 project’ means a surface transportation project for
16 which an environmental review process is required.’’.
17 (b) CLERICAL AMENDMENT.—The analysis for chapter
18 1 of title 23, United States Code, is further amended by
19 adding at the end the following:
‘‘178. Environmental review implementation funds.’’.
20 SEC. 60506. LOW-CARBON TRANSPORTATION MATERIALS
21 GRANTS.
22 (a) IN GENERAL.—Chapter 1 of title 23, United States
23 Code, is further amended by adding at the end the following:
† HR 5376 EAS
716
1 ‘‘§ 179. Low-carbon transportation materials grants
2 ‘‘(a) FEDERAL HIGHWAY ADMINISTRATION APPRO-
3 PRIATION.—In addition to amounts otherwise available,
4 there is appropriated for fiscal year 2022, out of any money
5 in the Treasury not otherwise appropriated,
6 $2,000,000,000, to remain available until September 30,
7 2026, to the Administrator to reimburse or provide incen-
8 tives to eligible recipients for the use, in projects, of con-
9 struction materials and products that have substantially
10 lower levels of embodied greenhouse gas emissions associated
11 with all relevant stages of production, use, and disposal as
12 compared to estimated industry averages of similar mate-
13 rials or products, as determined by the Administrator of
14 the Environmental Protection Agency, and for the oper-
15 ations and administration of the Federal Highway Admin-
16 istration to carry out this section.
17 ‘‘(b) REIMBURSEMENT OF INCREMENTAL COSTS; IN-
18 CENTIVES.—
19 ‘‘(1) IN GENERAL.—The Administrator shall,
20 subject to the availability of funds, either reimburse
21 or provide incentives to eligible recipients that use
22 low-embodied carbon construction materials and
23 products on a project funded under this title.
24 ‘‘(2) REIMBURSEMENT AND INCENTIVE
25 AMOUNTS.—
† HR 5376 EAS
717
1 ‘‘(A) INCREMENTAL AMOUNT.—The amount
2 of reimbursement under paragraph (1) shall be
3 equal to the incrementally higher cost of using
4 such materials relative to the cost of using tradi-
5 tional materials, as determined by the eligible re-
6 cipient and verified by the Administrator.
7 ‘‘(B) INCENTIVE AMOUNT.—The amount of
8 an incentive under paragraph (1) shall be equal
9 to 2 percent of the cost of using low-embodied
10 carbon construction materials and products on a
11 project funded under this title.
12 ‘‘(3) FEDERAL SHARE.—If a reimbursement or
13 incentive is provided under paragraph (1), the total
14 Federal share payable for the project for which the re-
15 imbursement or incentive is provided shall be up to
16 100 percent.
17 ‘‘(4) LIMITATIONS.—
18 ‘‘(A) IN GENERAL.—The Administrator
19 shall only provide a reimbursement or incentive
20 under paragraph (1) for a project on a—
21 ‘‘(i) Federal-aid highway;
22 ‘‘(ii) tribal transportation facility;
23 ‘‘(iii) Federal lands transportation fa-
24 cility; or
† HR 5376 EAS
718
1 ‘‘(iv) Federal lands access transpor-
2 tation facility.
3 ‘‘(B) OTHER RESTRICTIONS.—Amounts
4 made available under this section shall not be
5 subject to any restriction or limitation on the
6 total amount of funds available for implementa-
7 tion or execution of programs authorized for
8 Federal-aid highways.
9 ‘‘(C) SINGLE OCCUPANT PASSENGER VEHI-
10 CLES.—Funds made available under this section
11 shall not be used for projects that result in addi-
12 tional through travel lanes for single occupant
13 passenger vehicles.
14 ‘‘(5) MATERIALS IDENTIFICATION.—The Admin-
15 istrator shall review the low-embodied carbon con-
16 struction materials and products identified by the Ad-
17 ministrator of the Environmental Protection Agency
18 and shall identify low-embodied carbon construction
19 materials and products—
20 ‘‘(A) appropriate for use in projects eligible
21 under this title; and
22 ‘‘(B) eligible for reimbursement or incen-
23 tives under this section.
24 ‘‘(c) DEFINITIONS.—In this section:
† HR 5376 EAS
719
1 ‘‘(1) ADMINISTRATOR.—The term ‘Adminis-
2 trator’ means the Administrator of the Federal High-
3 way Administration.
4 ‘‘(2) ELIGIBLE RECIPIENT.—The term ‘eligible
5 recipient’ means—
6 ‘‘(A) a State;
7 ‘‘(B) a unit of local government;
8 ‘‘(C) a political subdivision of a State;
9 ‘‘(D) a territory of the United States;
10 ‘‘(E) an entity described in section
11 207(m)(1)(E);
12 ‘‘(F) a recipient of funds under section 203;
13 ‘‘(G) a metropolitan planning organization
14 (as defined in section 134(b)(2)); or
15 ‘‘(H) a special purpose district or public
16 authority with a transportation function.
17 ‘‘(3) GREENHOUSE GAS.—The term ‘greenhouse
18 gas’ means the air pollutants carbon dioxide,
19 hydrofluorocarbons, methane, nitrous oxide,
20 perfluorocarbons, and sulfur hexafluoride.’’.
21 (b) CLERICAL AMENDMENT.—The analysis for chapter
22 1 of title 23, United States Code, is further amended by
23 adding at the end the following:
‘‘179. Low-carbon transportation materials grants.’’.
† HR 5376 EAS
720
1 TITLE VII—COMMITTEE ON
2 HOMELAND SECURITY AND
3 GOVERNMENTAL AFFAIRS
4 SEC. 70001. DHS OFFICE OF CHIEF READINESS SUPPORT
5 OFFICER.
6 In addition to the amounts otherwise available, there
7 is appropriated to the Secretary of Homeland Security for
8 fiscal year 2022, out of any money in the Treasury not
9 otherwise appropriated, $500,000,000, to remain available
10 until September 30, 2028, for the Office of the Chief Readi-
11 ness Support Officer to carry out sustainability and envi-
12 ronmental programs.
13 SEC. 70002. UNITED STATES POSTAL SERVICE CLEAN
14 FLEETS.
15 In addition to amounts otherwise available, there is
16 appropriated to the United States Postal Service for fiscal
17 year 2022, out of any money in the Treasury not otherwise
18 appropriated, the following amounts, to be deposited into
19 the Postal Service Fund established under section 2003 of
20 title 39, United States Code:
21 (1) $1,290,000,000, to remain available through
22 September 30, 2031, for the purchase of zero-emission
23 delivery vehicles.
24 (2) $1,710,000,000, to remain available through
25 September 30, 2031, for the purchase, design, and in-
† HR 5376 EAS
721
1 stallation of the requisite infrastructure to support
2 zero-emission delivery vehicles at facilities that the
3 United States Postal Service owns or leases from non-
4 Federal entities.
5 SEC. 70003. UNITED STATES POSTAL SERVICE OFFICE OF
6 INSPECTOR GENERAL.
7 In addition to amounts otherwise available, there is
8 appropriated to the Office of Inspector General of the
9 United States Postal Service for fiscal year 2022, out of
10 any money in the Treasury not otherwise appropriated,
11 $15,000,000, to remain available through September 30,
12 2031, to support oversight of United States Postal Service
13 activities implemented pursuant to this Act.
14 SEC. 70004. GOVERNMENT ACCOUNTABILITY OFFICE OVER-
15 SIGHT.
16 In addition to amounts otherwise available, there is
17 appropriated to the Comptroller General of the United
18 States for fiscal year 2022, out of any money in the Treas-
19 ury not otherwise appropriated, $25,000,000, to remain
20 available until September 30, 2031, for necessary expenses
21 of the Government Accountability Office to support the over-
22 sight of—
23 (1) the distribution and use of funds appro-
24 priated under this Act; and
† HR 5376 EAS
722
1 (2) whether the economic, social, and environ-
2 mental impacts of the funds described in paragraph
3 (1) are equitable.
4 SEC. 70005. OFFICE OF MANAGEMENT AND BUDGET OVER-
5 SIGHT.
6 In addition to amounts otherwise available, there are
7 appropriated to the Director of the Office of Management
8 and Budget for fiscal year 2022, out of any money in the
9 Treasury not otherwise appropriated, $25,000,000, to re-
10 main available until September 30, 2026, for necessary ex-
11 penses to—
12 (1) oversee the implementation of this Act; and
13 (2) track labor, equity, and environmental
14 standards and performance.
15 SEC. 70006. FEMA BUILDING MATERIALS PROGRAM.
16 Through September 30, 2026, the Administrator of the
17 Federal Emergency Management Agency may provide fi-
18 nancial assistance under sections 203(h), 404(a), and
19 406(b) of the Robert T. Stafford Disaster Relief and Emer-
20 gency Assistance Act (42 U.S.C. 5133(h), 42 U.S.C.
21 5170c(a), 42 U.S.C. 5172(b)) for—
22 (1) costs associated with low-carbon materials;
23 and
24 (2) incentives that encourage low-carbon and
25 net-zero energy projects.
† HR 5376 EAS
723
1 SEC. 70007. FEDERAL PERMITTING IMPROVEMENT STEER-
2 ING COUNCIL ENVIRONMENTAL REVIEW IM-
3 PROVEMENT FUND MANDATORY FUNDING.
4 In addition to amounts otherwise available, there is
5 appropriated to the Federal Permitting Improvement Steer-
6 ing Council Environmental Review Improvement Fund, out
7 of any money in the Treasury not otherwise appropriated,
8 $350,000,000 for fiscal year 2023, to remain available
9 through September 30, 2031.
10 TITLE VIII—COMMITTEE ON
11 INDIAN AFFAIRS
12 SEC. 80001. TRIBAL CLIMATE RESILIENCE.
13 (a) TRIBAL CLIMATE RESILIENCE AND ADAPTA-
14 TION.—In addition to amounts otherwise available, there
15 is appropriated to the Director of the Bureau of Indian Af-
16 fairs for fiscal year 2022, out of any money in the Treasury
17 not otherwise appropriated, $220,000,000, to remain avail-
18 able until September 30, 2031, for Tribal climate resilience
19 and adaptation programs.
20 (b) BUREAU OF INDIAN AFFAIRS FISH HATCH-
21 ERIES.—In addition to amounts otherwise available, there
22 is appropriated to the Director of the Bureau of Indian Af-
23 fairs for fiscal year 2022, out of any money in the Treasury
24 not otherwise appropriated, $10,000,000, to remain avail-
25 able until September 30, 2031, for fish hatchery operations
26 and maintenance programs of the Bureau of Indian Affairs.
† HR 5376 EAS
724
1 (c) ADMINISTRATION.—In addition to amounts other-
2 wise available, there is appropriated to the Director of the
3 Bureau of Indian Affairs for fiscal year 2022, out of any
4 money in the Treasury not otherwise appropriated,
5 $5,000,000, to remain available until September 30, 2031,
6 for the administrative costs of carrying out this section.
7 (d) COST-SHARING AND MATCHING REQUIREMENTS.—
8 None of the funds provided by this section shall be subject
9 to cost-sharing or matching requirements.
10 (e) SMALL AND NEEDY PROGRAM.—Amounts made
11 available under this section shall be excluded from the cal-
12 culation of funds received by those Tribal governments that
13 participate in the ‘‘Small and Needy’’ program.
14 (f) DISTRIBUTION; USE OF FUNDS.—Amounts made
15 available under this section that are distributed to Indian
16 Tribes and Tribal organizations for services pursuant to a
17 self-determination contract (as defined in subsection (j) of
18 section 4 of the Indian Self-Determination and Education
19 Assistance Act (25 U.S.C. 5304(j))) or a self-governance
20 compact entered into pursuant to subsection (a) of section
21 404 of the Indian Self-Determination and Education As-
22 sistance Act (25 U.S.C. 5364(a))—
23 (1) shall be distributed on a 1-time basis;
24 (2) shall not be part of the amount required by
25 subsections (a) through (b) of section 106 of the In-
† HR 5376 EAS
725
1 dian Self-Determination and Education Assistance
2 Act (25 U.S.C. 5325(a)–(b)); and
3 (3) shall only be used for the purposes identified
4 under the applicable subsection.
5 SEC. 80002. NATIVE HAWAIIAN CLIMATE RESILIENCE.
6 (a) NATIVE HAWAIIAN CLIMATE RESILIENCE AND AD-
7 APTATION.—In addition to amounts otherwise available,
8 there is appropriated to the Senior Program Director of the
9 Office of Native Hawaiian Relations for fiscal year 2022,
10 out of any money in the Treasury not otherwise appro-
11 priated, $23,500,000, to remain available until September
12 30, 2031, to carry out, through financial assistance, tech-
13 nical assistance, direct expenditure, grants, contracts, or co-
14 operative agreements, climate resilience and adaptation ac-
15 tivities that serve the Native Hawaiian Community.
16 (b) ADMINISTRATION.—In addition to amounts other-
17 wise available, there is appropriated to the Senior Program
18 Director of the Office of Native Hawaiian Relations for fis-
19 cal year 2022, out of any money in the Treasury not other-
20 wise appropriated, $1,500,000, to remain available until
21 September 30, 2031, for the administrative costs of carrying
22 out this section.
23 (c) COST-SHARING AND MATCHING REQUIREMENTS.—
24 None of the funds provided by this section shall be subject
25 to cost-sharing or matching requirements.
† HR 5376 EAS
726
1 SEC. 80003. TRIBAL ELECTRIFICATION PROGRAM.
2 (a) TRIBAL ELECTRIFICATION PROGRAM.—In addi-
3 tion to amounts otherwise available, there is appropriated
4 to the Director of the Bureau of Indian Affairs for fiscal
5 year 2022, out of any money in the Treasury not otherwise
6 appropriated, $145,500,000, to remain available until Sep-
7 tember 30, 2031, for—
8 (1) the provision of electricity to unelectrified
9 Tribal homes through zero-emissions energy systems;
10 (2) transitioning electrified Tribal homes to zero-
11 emissions energy systems; and
12 (3) associated home repairs and retrofitting nec-
13 essary to install the zero-emissions energy systems au-
14 thorized under paragraphs (1) and (2).
15 (b) ADMINISTRATION.—In addition to amounts other-
16 wise available, there is appropriated to the Director of the
17 Bureau of Indian Affairs for fiscal year 2022, out of any
18 money in the Treasury not otherwise appropriated,
19 $4,500,000, to remain available until September 30, 2031,
20 for the administrative costs of carrying out this section.
21 (c) COST-SHARING AND MATCHING REQUIREMENTS.—
22 None of the funds provided by this section shall be subject
23 to cost-sharing or matching requirements.
24 (d) SMALL AND NEEDY PROGRAM.—Amounts made
25 available under this section shall be excluded from the cal-
† HR 5376 EAS
727
1 culation of funds received by those Tribal governments that
2 participate in the ‘‘Small and Needy’’ program.
3 (e) DISTRIBUTION; USE OF FUNDS.—Amounts made
4 available under this section that are distributed to Indian
5 Tribes and Tribal organizations for services pursuant to a
6 self-determination contract (as defined in subsection (j) of
7 section 4 of the Indian Self-Determination and Education
8 Assistance Act (25 U.S.C. 5304(j))) or a self-governance
9 compact entered into pursuant to subsection (a) of section
10 404 of the Indian Self-Determination and Education As-
11 sistance Act (25 U.S.C. 5364(a))—
12 (1) shall be distributed on a 1-time basis;
13 (2) shall not be part of the amount required by
14 subsections (a) through (b) of section 106 of the In-
15 dian Self-Determination and Education Assistance
16 Act (25 U.S.C. 5325(a)–(b)); and
17 (3) shall only be used for the purposes identified
18 under the applicable subsection.
19 SEC. 80004. EMERGENCY DROUGHT RELIEF FOR TRIBES.
20 (a) EMERGENCY DROUGHT RELIEF FOR TRIBES.—In
21 addition to amounts otherwise available, there is appro-
22 priated to the Commissioner of the Bureau of Reclamation
23 for fiscal year 2022, out of any money in the Treasury not
24 otherwise appropriated, $12,500,000, to remain available
25 until September 30, 2026, for near-term drought relief ac-
† HR 5376 EAS
728
1 tions to mitigate drought impacts for Indian Tribes that
2 are impacted by the operation of a Bureau of Reclamation
3 water project, including through direct financial assistance
4 to address drinking water shortages and to mitigate the loss
5 of Tribal trust resources.
6 (b) COST-SHARING AND MATCHING REQUIREMENTS.—
7 None of the funds provided by this section shall be subject
8 to cost-sharing or matching requirements.
Attest:
Secretary.
† HR 5376 EAS
117TH CONGRESS
2D SESSION H.R. 5376
AMENDMENT
File and source
- File
- BILLS_bills-117hr5376eas_bills-117hr5376eas.pdf
- Size
- 975,610 bytes
- SHA-256
- ee9a737e44f4bb0e6794586430f87975be7f90ed6f0e471c1c8b4671eedf7a1d
- Original
- www.govinfo.gov