Act — H.R. 5376, Reconciliation Act (One Hundred Seventeenth Congress)
Summary
H.R. 5376 is an Act of the One Hundred Seventeenth Congress to provide for reconciliation. Title I, Committee on Finance, Subtitle A, Deficit Reduction, amends the Internal Revenue Code of 1986. Part 1, Corporate Tax Reform, adds a corporate alternative minimum tax in which an applicable corporation's tentative minimum tax is the excess of 15 percent of its adjusted financial statement income over the corporate AMT foreign tax credit. For a corporation that is not an applicable corporation, the tentative minimum tax is zero. The text defines applicable corporation, excluding an S corporation, a regulated investment company, or a real estate investment trust.
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- Bills Bills 117Hr5376Enr Bills 117Hr5376Enr
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Cite this document
“Act — H.R. 5376, Reconciliation Act (One Hundred Seventeenth Congress).”
Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/bills-bills-117hr5376enr-bills-117hr5376enr/
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H. R. 5376
One Hundred Seventeenth Congress
of the
United States of America
AT T H E S E C O N D S E S S I O N
Begun and held at the City of Washington on Monday,
the third day of January, two thousand and twenty-two
An Act
To provide for reconciliation pursuant to title II of S. Con. Res. 14.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
TITLE I—COMMITTEE ON FINANCE
Subtitle A—Deficit Reduction
SECTION 10001. AMENDMENT OF 1986 CODE.
Except as otherwise expressly provided, whenever in this sub-
title an amendment or repeal is expressed in terms of an amend-
ment to, or repeal of, a section or other provision, the reference
shall be considered to be made to a section or other provision
of the Internal Revenue Code of 1986.
PART 1—CORPORATE TAX REFORM
SEC. 10101. CORPORATE ALTERNATIVE MINIMUM TAX.
(a) IMPOSITION OF TAX.—
(1) IN GENERAL.—Paragraph (2) of section 55(b) is amended
to read as follows:
‘‘(2) CORPORATIONS.—
‘‘(A) APPLICABLE CORPORATIONS.—In the case of an
applicable corporation, the tentative minimum tax for the
taxable year shall be the excess of—
‘‘(i) 15 percent of the adjusted financial statement
income for the taxable year (as determined under sec-
tion 56A), over
‘‘(ii) the corporate AMT foreign tax credit for the
taxable year.
‘‘(B) OTHER CORPORATIONS.—In the case of any corpora-
tion which is not an applicable corporation, the tentative
minimum tax for the taxable year shall be zero.’’.
(2) APPLICABLE CORPORATION.—Section 59 is amended by
adding at the end the following new subsection:
‘‘(k) APPLICABLE CORPORATION.—For purposes of this part—
‘‘(1) APPLICABLE CORPORATION DEFINED.—
‘‘(A) IN GENERAL.—The term ‘applicable corporation’
means, with respect to any taxable year, any corporation
(other than an S corporation, a regulated investment com-
pany, or a real estate investment trust) which meets the
H. R. 5376—2
average annual adjusted financial statement income test
of subparagraph (B) for one or more taxable years which—
‘‘(i) are prior to such taxable year, and
‘‘(ii) end after December 31, 2021.
‘‘(B) AVERAGE ANNUAL ADJUSTED FINANCIAL STATEMENT
INCOME TEST.—For purposes of this subsection—
‘‘(i) a corporation meets the average annual
adjusted financial statement income test for a taxable
year if the average annual adjusted financial statement
income of such corporation (determined without regard
to section 56A(d)) for the 3-taxable-year period ending
with such taxable year exceeds $1,000,000,000, and
‘‘(ii) in the case of a corporation described in para-
graph (2), such corporation meets the average annual
adjusted financial statement income test for a taxable
year if—
‘‘(I) the corporation meets the requirements
of clause (i) for such taxable year (determined after
the application of paragraph (2)), and
‘‘(II) the average annual adjusted financial
statement income of such corporation (determined
without regard to the application of paragraph
(2) and without regard to section 56A(d)) for the
3-taxable-year-period ending with such taxable
year is $100,000,000 or more.
‘‘(C) EXCEPTION.—Notwithstanding subparagraph (A),
the term ‘applicable corporation’ shall not include any cor-
poration which otherwise meets the requirements of
subparagraph (A) if—
‘‘(i) such corporation—
‘‘(I) has a change in ownership, or
‘‘(II) has a specified number (to be determined
by the Secretary and which shall, as appropriate,
take into account the facts and circumstances of
the taxpayer) of consecutive taxable years,
including the most recent taxable year, in which
the corporation does not meet the average annual
adjusted financial statement income test of
subparagraph (B), and
‘‘(ii) the Secretary determines that it would not
be appropriate to continue to treat such corporation
as an applicable corporation.
The preceding sentence shall not apply to any corporation
if, after the Secretary makes the determination described
in clause (ii), such corporation meets the average annual
adjusted financial statement income test of subparagraph
(B) for any taxable year beginning after the first taxable
year for which such determination applies.
‘‘(D) SPECIAL RULES FOR DETERMINING APPLICABLE COR-
PORATION STATUS.—
‘‘(i) IN GENERAL.—Solely for purposes of deter-
mining whether a corporation is an applicable corpora-
tion under this paragraph, all adjusted financial state-
ment income of persons treated as a single employer
with such corporation under subsection (a) or (b) of
section 52 (determined with the modifications described
in clause (ii)) shall be treated as adjusted financial
H. R. 5376—3
statement income of such corporation, and adjusted
financial statement income of such corporation shall
be determined without regard to paragraphs (2)(D)(i)
and (11) of section 56A(c).
‘‘(ii) MODIFICATIONS.—For purposes of this
subparagraph—
‘‘(I) section 52(a) shall be applied by sub-
stituting ‘component members’ for ‘members’, and
‘‘(II) for purposes of applying section 52(b),
the term ‘trade or business’ shall include any
activity treated as a trade or business under para-
graph (5) or (6) of section 469(c) (determined with-
out regard to the phrase ‘To the extent provided
in regulations’ in such paragraph (6)).
‘‘(iii) COMPONENT MEMBER.—For purposes of this
subparagraph, the term ‘component member’ has the
meaning given such term by section 1563(b), except
that the determination shall be made without regard
to section 1563(b)(2).
‘‘(E) OTHER SPECIAL RULES.—
‘‘(i) CORPORATIONS IN EXISTENCE FOR LESS THAN
3 YEARS.—If the corporation was in existence for less
than 3-taxable years, subparagraph (B) shall be applied
on the basis of the period during which such corpora-
tion was in existence.
‘‘(ii) SHORT TAXABLE YEARS.—Adjusted financial
statement income for any taxable year of less than
12 months shall be annualized by multiplying the
adjusted financial statement income for the short
period by 12 and dividing the result by the number
of months in the short period.
‘‘(iii) TREATMENT OF PREDECESSORS.—Any ref-
erence in this subparagraph to a corporation shall
include a reference to any predecessor of such corpora-
tion.
‘‘(2) SPECIAL RULE FOR FOREIGN-PARENTED MULTINATIONAL
GROUPS.—
‘‘(A) IN GENERAL.—If a corporation is a member of
a foreign-parented multinational group for any taxable
year, then, solely for purposes of determining whether such
corporation meets the average annual adjusted financial
statement income test under paragraph (1)(B)(ii)(I) for such
taxable year, the adjusted financial statement income of
such corporation for such taxable year shall include the
adjusted financial statement income of all members of such
group. Solely for purposes of this subparagraph, adjusted
financial statement income shall be determined without
regard to paragraphs (2)(D)(i), (3), (4), and (11) of section
56A(c).
‘‘(B) FOREIGN-PARENTED MULTINATIONAL GROUP.—For
purposes of subparagraph (A), the term ‘foreign-parented
multinational group’ means, with respect to any taxable
year, two or more entities if—
‘‘(i) at least one entity is a domestic corporation
and another entity is a foreign corporation,
H. R. 5376—4
‘‘(ii) such entities are included in the same
applicable financial statement with respect to such
year, and
‘‘(iii) either—
‘‘(I) the common parent of such entities is a
foreign corporation, or
‘‘(II) if there is no common parent, the entities
are treated as having a common parent which
is a foreign corporation under subparagraph (D).
‘‘(C) FOREIGN CORPORATIONS ENGAGED IN A TRADE OR
BUSINESS WITHIN THE UNITED STATES.—For purposes of this
paragraph, if a foreign corporation is engaged in a trade
or business within the United States, such trade or busi-
ness shall be treated as a separate domestic corporation
that is wholly owned by the foreign corporation.
‘‘(D) OTHER RULES.—The Secretary shall, applying the
principles of this section, prescribe rules for the application
of this paragraph, including rules for the determination
of—
‘‘(i) the entities (if any) which are to be to be
treated under subparagraph (B)(iii)(II) as having a
common parent which is a foreign corporation,
‘‘(ii) the entities to be included in a foreign-
parented multinational group, and
‘‘(iii) the common parent of a foreign-parented
multinational group.
‘‘(3) REGULATIONS OR OTHER GUIDANCE.—The Secretary
shall provide regulations or other guidance for the purposes
of carrying out this subsection, including regulations or other
guidance—
‘‘(A) providing a simplified method for determining
whether a corporation meets the requirements of paragraph
(1), and
‘‘’(B) addressing the application of this subsection to
a corporation that experiences a change in ownership.’’.
(3) REDUCTION FOR BASE EROSION AND ANTI-ABUSE TAX.—
Section 55(a)(2) is amended by inserting ‘‘plus, in the case
of an applicable corporation, the tax imposed by section 59A’’
before the period at the end.
(4) CONFORMING AMENDMENTS.—
(A) Section 55(a) is amended by striking ‘‘In the case
of a taxpayer other than a corporation, there’’ and inserting
‘‘There’’.
(B)(i) Section 55(b)(1) is amended—
(I) by striking so much as precedes subparagraph
(A) and inserting the following:
‘‘(1) NONCORPORATE TAXPAYERS.—In the case of a taxpayer
other than a corporation—’’, and
(II) by adding at the end the following new
subparagraph:
‘‘(D) ALTERNATIVE MINIMUM TAXABLE INCOME.—The
term ‘alternative minimum taxable income’ means the tax-
able income of the taxpayer for the taxable year—
‘‘(i) determined with the adjustments provided in
section 56 and section 58, and
‘‘(ii) increased by the amount of the items of tax
preference described in section 57.
H. R. 5376—5
If a taxpayer is subject to the regular tax, such taxpayer
shall be subject to the tax imposed by this section (and,
if the regular tax is determined by reference to an amount
other than taxable income, such amount shall be treated
as the taxable income of such taxpayer for purposes of
the preceding sentence).’’.
(ii) Section 860E(a)(4) is amended by striking ‘‘55(b)(2)’’
and inserting ‘‘55(b)(1)(D)’’.
(iii) Section 897(a)(2)(A)(i) is amended by striking
‘‘55(b)(2)’’ and inserting ‘‘55(b)(1)(D)’’.
(C) Section 11(d) is amended by striking ‘‘the tax
imposed by subsection (a)’’ and inserting ‘‘the taxes imposed
by subsection (a) and section 55’’.
(D) Section 12 is amended by adding at the end the
following new paragraph:
‘‘(5) For alternative minimum tax, see section 55.’’.
(E) Section 882(a)(1) is amended by inserting ‘‘, 55,’’
after ‘‘section 11’’.
(F) Section 6425(c)(1)(A) is amended to read as follows:
‘‘(A) the sum of—
‘‘(i) the tax imposed by section 11 or subchapter
L of chapter 1, whichever is applicable, plus
‘‘(ii) the tax imposed by section 55, plus
‘‘(iii) the tax imposed by section 59A, over’’.
(G) Section 6655(e)(2) is amended by inserting ‘‘,
adjusted financial statement income (as defined in section
56A),’’ before ‘‘and modified taxable income’’ each place
it appears in subparagraphs (A)(i) and (B)(i).
(H) Section 6655(g)(1)(A) is amended by redesignating
clauses (ii) and (iii) as clauses (iii) and (iv), respectively,
and by inserting after clause (i) the following new clause:
‘‘(ii) the tax imposed by section 55,’’.
(b) ADJUSTED FINANCIAL STATEMENT INCOME.—
(1) IN GENERAL.—Part VI of subchapter A of chapter 1
is amended by inserting after section 56 the following new
section:
‘‘SEC. 56A. ADJUSTED FINANCIAL STATEMENT INCOME.
‘‘(a) IN GENERAL.—For purposes of this part, the term ‘adjusted
financial statement income’ means, with respect to any corporation
for any taxable year, the net income or loss of the taxpayer set
forth on the taxpayer’s applicable financial statement for such tax-
able year, adjusted as provided in this section.
‘‘(b) APPLICABLE FINANCIAL STATEMENT.—For purposes of this
section, the term ‘applicable financial statement’ means, with
respect to any taxable year, an applicable financial statement (as
defined in section 451(b)(3) or as specified by the Secretary in
regulations or other guidance) which covers such taxable year.
‘‘(c) GENERAL ADJUSTMENTS.—
‘‘(1) STATEMENTS COVERING DIFFERENT TAXABLE YEARS.—
Appropriate adjustments shall be made in adjusted financial
statement income in any case in which an applicable financial
statement covers a period other than the taxable year.
‘‘(2) SPECIAL RULES FOR RELATED ENTITIES.—
‘‘(A) CONSOLIDATED FINANCIAL STATEMENTS.—If the
financial results of a taxpayer are reported on the
H. R. 5376—6
applicable financial statement for a group of entities, rules
similar to the rules of section 451(b)(5) shall apply.
‘‘(B) CONSOLIDATED RETURNS.—Except as provided in
regulations prescribed by the Secretary, if the taxpayer
is part of an affiliated group of corporations filing a consoli-
dated return for any taxable year, adjusted financial state-
ment income for such group for such taxable year shall
take into account items on the group’s applicable financial
statement which are properly allocable to members of such
group.
‘‘(C) TREATMENT OF DIVIDENDS AND OTHER AMOUNTS.—
In the case of any corporation which is not included on
a consolidated return with the taxpayer, adjusted financial
statement income of the taxpayer with respect to such
other corporation shall be determined by only taking into
account the dividends received from such other corporation
(reduced to the extent provided by the Secretary in regula-
tions or other guidance) and other amounts which are
includible in gross income or deductible as a loss under
this chapter (other than amounts required to be included
under sections 951 and 951A or such other amounts as
provided by the Secretary) with respect to such other cor-
poration.
‘‘(D) TREATMENT OF PARTNERSHIPS.—
‘‘(i) IN GENERAL.—Except as provided by the Sec-
retary, if the taxpayer is a partner in a partnership,
adjusted financial statement income of the taxpayer
with respect to such partnership shall be adjusted
to only take into account the taxpayer’s distributive
share of adjusted financial statement income of such
partnership.
‘‘(ii) ADJUSTED FINANCIAL STATEMENT INCOME OF
PARTNERSHIPS.—For the purposes of this part, the
adjusted financial statement income of a partnership
shall be the partnership’s net income or loss set forth
on such partnership’s applicable financial statement
(adjusted under rules similar to the rules of this sec-
tion).
‘‘(3) ADJUSTMENTS TO TAKE INTO ACCOUNT CERTAIN ITEMS
OF FOREIGN INCOME.—
‘‘(A) IN GENERAL.—If, for any taxable year, a taxpayer
is a United States shareholder of one or more controlled
foreign corporations, the adjusted financial statement
income of such taxpayer with respect to such controlled
foreign corporation (as determined under paragraph (2)(C))
shall be adjusted to also take into account such taxpayer’s
pro rata share (determined under rules similar to the rules
under section 951(a)(2)) of items taken into account in
computing the net income or loss set forth on the applicable
financial statement (as adjusted under rules similar to
those that apply in determining adjusted financial state-
ment income) of each such controlled foreign corporation
with respect to which such taxpayer is a United States
shareholder.
‘‘(B) NEGATIVE ADJUSTMENTS.—In any case in which
the adjustment determined under subparagraph (A) would
result in a negative adjustment for such taxable year—
H. R. 5376—7
‘‘(i) no adjustment shall be made under this para-
graph for such taxable year, and
‘‘(ii) the amount of the adjustment determined
under this paragraph for the succeeding taxable year
(determined without regard to this paragraph) shall
be reduced by an amount equal to the negative adjust-
ment for such taxable year.
‘‘(4) EFFECTIVELY CONNECTED INCOME.—In the case of a
foreign corporation, to determine adjusted financial statement
income, the principles of section 882 shall apply.
‘‘(5) ADJUSTMENTS FOR CERTAIN TAXES.—Adjusted financial
statement income shall be appropriately adjusted to disregard
any Federal income taxes, or income, war profits, or excess
profits taxes (within the meaning of section 901) with respect
to a foreign country or possession of the United States, which
are taken into account on the taxpayer’s applicable financial
statement. To the extent provided by the Secretary, the pre-
ceding sentence shall not apply to income, war profits, or excess
profits taxes (within the meaning of section 901) that are
imposed by a foreign country or possession of the United States
and taken into account on the taxpayer’s applicable financial
statement if the taxpayer does not choose to have the benefits
of subpart A of part III of subchapter N for the taxable year.
The Secretary shall prescribe such regulations or other guid-
ance as may be necessary and appropriate to provide for the
proper treatment of current and deferred taxes for purposes
of this paragraph, including the time at which such taxes
are properly taken into account.
‘‘(6) ADJUSTMENT WITH RESPECT TO DISREGARDED ENTI-
TIES.—Adjusted financial statement income shall be adjusted
to take into account any adjusted financial statement income
of a disregarded entity owned by the taxpayer.
‘‘(7) SPECIAL RULE FOR COOPERATIVES.—In the case of a
cooperative to which section 1381 applies, the adjusted financial
statement income (determined without regard to this para-
graph) shall be reduced by the amounts referred to in section
1382(b) (relating to patronage dividends and per-unit retain
allocations) to the extent such amounts were not otherwise
taken into account in determining adjusted financial statement
income.
‘‘(8) RULES FOR ALASKA NATIVE CORPORATIONS.—Adjusted
financial statement income shall be appropriately adjusted to
allow—
‘‘(A) cost recovery and depletion attributable to prop-
erty the basis of which is determined under section 21(c)
of the Alaska Native Claims Settlement Act (43 U.S.C.
1620(c)), and
‘‘(B) deductions for amounts payable made pursuant
to section 7(i) or section 7(j) of such Act (43 U.S.C. 1606(i)
and 1606(j)) only at such time as the deductions are allowed
for tax purposes.
‘‘(9) AMOUNTS ATTRIBUTABLE TO ELECTIONS FOR DIRECT PAY-
MENT OF CERTAIN CREDITS.—Adjusted financial statement
income shall be appropriately adjusted to disregard any amount
treated as a payment against the tax imposed by subtitle A
pursuant to an election under section 48D(d) or 6417, to the
H. R. 5376—8
extent such amount was not otherwise taken into account under
paragraph (5).
‘‘(10) CONSISTENT TREATMENT OF MORTGAGE SERVICING
INCOME OF TAXPAYER OTHER THAN A REGULATED INVESTMENT
COMPANY.—
‘‘(A) IN GENERAL.—Adjusted financial statement income
shall be adjusted so as not to include any item of income
in connection with a mortgage servicing contract any earlier
than when such income is included in gross income under
any other provision of this chapter.
‘‘(B) RULES FOR AMOUNTS NOT REPRESENTING REASON-
ABLE COMPENSATION.—The Secretary shall provide regula-
tions to prevent the avoidance of taxes imposed by this
chapter with respect to amounts not representing reason-
able compensation (as determined by the Secretary) with
respect to a mortgage servicing contract.
‘‘(11) ADJUSTMENT WITH RESPECT TO DEFINED BENEFIT PEN-
SIONS.—
‘‘(A) IN GENERAL.—Except as otherwise provided in
rules prescribed by the Secretary in regulations or other
guidance, adjusted financial statement income shall be—
‘‘(i) adjusted to disregard any amount of income,
cost, or expense that would otherwise be included on
the applicable financial statement in connection with
any covered benefit plan,
‘‘(ii) increased by any amount of income in connec-
tion with any such covered benefit plan that is included
in the gross income of the corporation under any other
provision of this chapter, and
‘‘(iii) reduced by deductions allowed under any
other provision of this chapter with respect to any
such covered benefit plan.
‘‘(B) COVERED BENEFIT PLAN.—For purposes of this
paragraph, the term ‘covered benefit plan’ means—
‘‘(i) a defined benefit plan (other than a multiem-
ployer plan described in section 414(f)) if the trust
which is part of such plan is an employees’ trust
described in section 401(a) which is exempt from tax
under section 501(a),
‘‘(ii) any qualified foreign plan (as defined in sec-
tion 404A(e)), or
‘‘(iii) any other defined benefit plan which provides
post-employment benefits other than pension benefits.
‘‘(12) TAX-EXEMPT ENTITIES.—In the case of an organization
subject to tax under section 511, adjusted financial statement
income shall be appropriately adjusted to only take into account
any adjusted financial statement income—
‘‘(A) of an unrelated trade or business (as defined in
section 513) of such organization, or
‘‘(B) derived from debt-financed property (as defined
in section 514) to the extent that income from such property
is treated as unrelated business taxable income.
‘‘(13) DEPRECIATION.—Adjusted financial statement income
shall be—
‘‘(A) reduced by depreciation deductions allowed under
section 167 with respect to property to which section 168
H. R. 5376—9
applies to the extent of the amount allowed as deductions
in computing taxable income for the taxable year, and
‘‘(B) appropriately adjusted—
‘‘(i) to disregard any amount of depreciation
expense that is taken into account on the taxpayer’s
applicable financial statement with respect to such
property, and
‘‘(ii) to take into account any other item specified
by the Secretary in order to provide that such property
is accounted for in the same manner as it is accounted
for under this chapter.
‘‘(14) QUALIFIED WIRELESS SPECTRUM.—
‘‘(A) IN GENERAL.—Adjusted financial statement income
shall be—
‘‘(i) reduced by amortization deductions allowed
under section 197 with respect to qualified wireless
spectrum to the extent of the amount allowed as deduc-
tions in computing taxable income for the taxable year,
and
‘‘(ii) appropriately adjusted—
‘‘(I) to disregard any amount of amortization
expense that is taken into account on the tax-
payer’s applicable financial statement with respect
to such qualified wireless spectrum, and
‘‘(II) to take into account any other item speci-
fied by the Secretary in order to provide that such
qualified wireless spectrum is accounted for in the
same manner as it is accounted for under this
chapter.
‘‘(B) QUALIFIED WIRELESS SPECTRUM.—For purposes of
this paragraph, the term ‘qualified wireless spectrum’
means wireless spectrum which—
‘‘(i) is used in the trade or business of a wireless
telecommunications carrier, and
‘‘(ii) was acquired after December 31, 2007, and
before the date of enactment of this section.
‘‘(15) SECRETARIAL AUTHORITY TO ADJUST ITEMS.—The Sec-
retary shall issue regulations or other guidance to provide
for such adjustments to adjusted financial statement income
as the Secretary determines necessary to carry out the purposes
of this section, including adjustments—
‘‘(A) to prevent the omission or duplication of any item,
and
‘‘(B) to carry out the principles of part II of subchapter
C of this chapter (relating to corporate liquidations), part
III of subchapter C of this chapter (relating to corporate
organizations and reorganizations), and part II of sub-
chapter K of this chapter (relating to partnership contribu-
tions and distributions).
‘‘(d) DEDUCTION FOR FINANCIAL STATEMENT NET OPERATING
LOSS.—
‘‘(1) IN GENERAL.—Adjusted financial statement income
(determined after application of subsection (c) and without
regard to this subsection) shall be reduced by an amount equal
to the lesser of—
‘‘(A) the aggregate amount of financial statement net
operating loss carryovers to the taxable year, or
H. R. 5376—10
‘‘(B) 80 percent of adjusted financial statement income
computed without regard to the deduction allowable under
this subsection.
‘‘(2) FINANCIAL STATEMENT NET OPERATING LOSS CARRY-
OVER.—A financial statement net operating loss for any taxable
year shall be a financial statement net operating loss carryover
to each taxable year following the taxable year of the loss.
The portion of such loss which shall be carried to subsequent
taxable years shall be the amount of such loss remaining (if
any) after the application of paragraph (1).
‘‘(3) FINANCIAL STATEMENT NET OPERATING LOSS DEFINED.—
For purposes of this subsection, the term ‘financial statement
net operating loss’ means the amount of the net loss (if any)
set forth on the corporation’s applicable financial statement
(determined after application of subsection (c) and without
regard to this subsection) for taxable years ending after
December 31, 2019.
‘‘(e) REGULATIONS AND OTHER GUIDANCE.—The Secretary shall
provide for such regulations and other guidance as necessary to
carry out the purposes of this section, including regulations and
other guidance relating to the effect of the rules of this section
on partnerships with income taken into account by an applicable
corporation.’’.
(2) CLERICAL AMENDMENT.—The table of sections for part
VI of subchapter A of chapter 1 is amended by inserting after
the item relating to section 56 the following new item:
‘‘Sec. 56A. Adjusted financial statement income.’’.
(c) CORPORATE AMT FOREIGN TAX CREDIT.—Section 59, as
amended by this section, is amended by adding at the end the
following new subsection:
‘‘(l) CORPORATE AMT FOREIGN TAX CREDIT.—
‘‘(1) IN GENERAL.—For purposes of this part, if an applicable
corporation chooses to have the benefits of subpart A of part
III of subchapter N for any taxable year, the corporate AMT
foreign tax credit for the taxable year of the applicable corpora-
tion is an amount equal to sum of—
‘‘(A) the lesser of—
‘‘(i) the aggregate of the applicable corporation’s
pro rata share (as determined under section 56A(c)(3))
of the amount of income, war profits, and excess profits
taxes (within the meaning of section 901) imposed
by any foreign country or possession of the United
States which are—
‘‘(I) taken into account on the applicable finan-
cial statement of each controlled foreign corpora-
tion with respect to which the applicable corpora-
tion is a United States shareholder, and
‘‘(II) paid or accrued (for Federal income tax
purposes) by each such controlled foreign corpora-
tion, or
‘‘(ii) the product of the amount of the adjustment
under section 56A(c)(3) and the percentage specified
in section 55(b)(2)(A)(i), and
‘‘(B) in the case of an applicable corporation that is
a domestic corporation, the amount of income, war profits,
and excess profits taxes (within the meaning of section
H. R. 5376—11
901) imposed by any foreign country or possession of the
United States to the extent such taxes are—
‘‘(i) taken into account on the applicable corpora-
tion’s applicable financial statement, and
‘‘(ii) paid or accrued (for Federal income tax pur-
poses) by the applicable corporation.
‘‘(2) CARRYOVER OF EXCESS TAX PAID.—For any taxable
year for which an applicable corporation chooses to have the
benefits of subpart A of part III of subchapter N, the excess
of the amount described in paragraph (1)(A)(i) over the amount
described in paragraph (1)(A)(ii) shall increase the amount
described in paragraph (1)(A)(i) in any of the first 5 succeeding
taxable years to the extent not taken into account in a prior
taxable year.
‘‘(3) REGULATIONS OR OTHER GUIDANCE.—The Secretary
shall provide for such regulations or other guidance as is nec-
essary to carry out the purposes of this subsection.’’.
(d) TREATMENT OF GENERAL BUSINESS CREDIT.—Section
38(c)(6)(E) is amended to read as follows:
‘‘(E) CORPORATIONS.—In the case of a corporation—
‘‘(i) the first sentence of paragraph (1) shall be
applied by substituting ‘25 percent of the taxpayer’s
net income tax as exceeds $25,000’ for ‘the greater
of’ and all that follows,
‘‘(ii) paragraph (2)(A) shall be applied without
regard to clause (ii)(I) thereof, and
‘‘(iii) paragraph (4)(A) shall be applied without
regard to clause (ii)(I) thereof.’’.
(e) CREDIT FOR PRIOR YEAR MINIMUM TAX LIABILITY.—
(1) IN GENERAL.—Section 53(e) is amended to read as fol-
lows:
‘‘(e) APPLICATION TO APPLICABLE CORPORATIONS.—In the case
of a corporation—
‘‘(1) subsection (b)(1) shall be applied by substituting ‘the
net minimum tax for all prior taxable years beginning after
2022’ for ‘the adjusted net minimum tax imposed for all prior
taxable years beginning after 1986’, and
‘‘(2) the amount determined under subsection (c)(1) shall
be increased by the amount of tax imposed under section 59A
for the taxable year.’’.
(2) CONFORMING AMENDMENTS.—Section 53(d) is
amended—
(A) in paragraph (2), by striking ‘‘, except that in
the case’’ and all that follows through ‘‘treated as zero’’,
and
(B) by striking paragraph (3).
(f) EFFECTIVE DATE.—The amendments made by this section
shall apply to taxable years beginning after December 31, 2022.
PART 2—EXCISE TAX ON REPURCHASE OF
CORPORATE STOCK
SEC. 10201. EXCISE TAX ON REPURCHASE OF CORPORATE STOCK.
(a) IN GENERAL.—Subtitle D is amended by inserting after
chapter 36 the following new chapter:
H. R. 5376—12
‘‘CHAPTER 37—REPURCHASE OF CORPORATE STOCK
‘‘Sec. 4501. Repurchase of corporate stock.
‘‘SEC. 4501. REPURCHASE OF CORPORATE STOCK.
‘‘(a) GENERAL RULE.—There is hereby imposed on each covered
corporation a tax equal to 1 percent of the fair market value
of any stock of the corporation which is repurchased by such cor-
poration during the taxable year.
‘‘(b) COVERED CORPORATION.—For purposes of this section, the
term ‘covered corporation’ means any domestic corporation the stock
of which is traded on an established securities market (within
the meaning of section 7704(b)(1)).
‘‘(c) REPURCHASE.—For purposes of this section—
‘‘(1) IN GENERAL.—The term ‘repurchase’ means—
‘‘(A) a redemption within the meaning of section 317(b)
with regard to the stock of a covered corporation, and
‘‘(B) any transaction determined by the Secretary to
be economically similar to a transaction described in
subparagraph (A).
‘‘(2) TREATMENT OF PURCHASES BY SPECIFIED AFFILIATES.—
‘‘(A) IN GENERAL.—The acquisition of stock of a covered
corporation by a specified affiliate of such covered corpora-
tion, from a person who is not the covered corporation
or a specified affiliate of such covered corporation, shall
be treated as a repurchase of the stock of the covered
corporation by such covered corporation.
‘‘(B) SPECIFIED AFFILIATE.—For purposes of this section,
the term ‘specified affiliate’ means, with respect to any
corporation—
‘‘(i) any corporation more than 50 percent of the
stock of which is owned (by vote or by value), directly
or indirectly, by such corporation, and
‘‘(ii) any partnership more than 50 percent of the
capital interests or profits interests of which is held,
directly or indirectly, by such corporation.
‘‘(3) ADJUSTMENT.—The amount taken into account under
subsection (a) with respect to any stock repurchased by a cov-
ered corporation shall be reduced by the fair market value
of any stock issued by the covered corporation during the tax-
able year, including the fair market value of any stock issued
or provided to employees of such covered corporation or
employees of a specified affiliate of such covered corporation
during the taxable year, whether or not such stock is issued
or provided in response to the exercise of an option to purchase
such stock.
‘‘(d) SPECIAL RULES FOR ACQUISITION OF STOCK OF CERTAIN
FOREIGN CORPORATIONS.—
‘‘(1) IN GENERAL.—In the case of an acquisition of stock
of an applicable foreign corporation by a specified affiliate of
such corporation (other than a foreign corporation or a foreign
partnership (unless such partnership has a domestic entity
as a direct or indirect partner)) from a person who is not
the applicable foreign corporation or a specified affiliate of
such applicable foreign corporation, for purposes of this sec-
tion—
H. R. 5376—13
‘‘(A) such specified affiliate shall be treated as a covered
corporation with respect to such acquisition,
‘‘(B) such acquisition shall be treated as a repurchase
of stock of a covered corporation by such covered corpora-
tion, and
‘‘(C) the adjustment under subsection (c)(3) shall be
determined only with respect to stock issued or provided
by such specified affiliate to employees of the specified
affiliate.
‘‘(2) SURROGATE FOREIGN CORPORATIONS.—In the case of
a repurchase of stock of a covered surrogate foreign corporation
by such covered surrogate foreign corporation, or an acquisition
of stock of a covered surrogate foreign corporation by a specified
affiliate of such corporation, for purposes of this section—
‘‘(A) the expatriated entity with respect to such covered
surrogate foreign corporation shall be treated as a covered
corporation with respect to such repurchase or acquisition,
‘‘(B) such repurchase or acquisition shall be treated
as a repurchase of stock of a covered corporation by such
covered corporation, and
‘‘(C) the adjustment under subsection (c)(3) shall be
determined only with respect to stock issued or provided
by such expatriated entity to employees of the expatriated
entity.
‘‘(3) DEFINITIONS.—For purposes of this subsection—
‘‘(A) APPLICABLE FOREIGN CORPORATION.—The term
‘applicable foreign corporation’ means any foreign corpora-
tion the stock of which is traded on an established securi-
ties market (within the meaning of section 7704(b)(1)).
‘‘(B) COVERED SURROGATE FOREIGN CORPORATION.—The
term ‘covered surrogate foreign corporation’ means any
surrogate foreign corporation (as determined under section
7874(a)(2)(B) by substituting ‘September 20, 2021’ for
‘March 4, 2003’ each place it appears) the stock of which
is traded on an established securities market (within the
meaning of section 7704(b)(1)), but only with respect to
taxable years which include any portion of the applicable
period with respect to such corporation under section
7874(d)(1).
‘‘(C) EXPATRIATED ENTITY.—The term ‘expatriated
entity’ has the meaning given such term by section
7874(a)(2)(A).
‘‘(e) EXCEPTIONS.—Subsection (a) shall not apply—
‘‘(1) to the extent that the repurchase is part of a reorga-
nization (within the meaning of section 368(a)) and no gain
or loss is recognized on such repurchase by the shareholder
under chapter 1 by reason of such reorganization,
‘‘(2) in any case in which the stock repurchased is, or
an amount of stock equal to the value of the stock repurchased
is, contributed to an employer-sponsored retirement plan,
employee stock ownership plan, or similar plan,
‘‘(3) in any case in which the total value of the stock
repurchased during the taxable year does not exceed
$1,000,000,
‘‘(4) under regulations prescribed by the Secretary, in cases
in which the repurchase is by a dealer in securities in the
ordinary course of business,
H. R. 5376—14
‘‘(5) to repurchases by a regulated investment company
(as defined in section 851) or a real estate investment trust,
or
‘‘(6) to the extent that the repurchase is treated as a
dividend for purposes of this title.
‘‘(f) REGULATIONS AND GUIDANCE.—The Secretary shall pre-
scribe such regulations and other guidance as are necessary or
appropriate to carry out, and to prevent the avoidance of, the
purposes of this section, including regulations and other guidance—
‘‘(1) to prevent the abuse of the exceptions provided by
subsection (e),
‘‘(2) to address special classes of stock and preferred stock,
and
‘‘(3) for the application of the rules under subsection (d).’’.
(b) TAX NOT DEDUCTIBLE.—Paragraph (6) of section 275(a) is
amended by inserting ‘‘37,’’ before ‘‘41’’.
(c) CLERICAL AMENDMENT.—The table of chapters for subtitle
D is amended by inserting after the item relating to chapter 36
the following new item:
‘‘CHAPTER 37—REPURCHASE OF CORPORATE STOCK’’.
(d) EFFECTIVE DATE.—The amendments made by this section
shall apply to repurchases (within the meaning of section 4501(c)
of the Internal Revenue Code of 1986, as added by this section)
of stock after December 31, 2022.
PART 3—FUNDING THE INTERNAL REVENUE
SERVICE AND IMPROVING TAXPAYER COM-
PLIANCE
SEC. 10301. ENHANCEMENT OF INTERNAL REVENUE SERVICE
RESOURCES.
IN GENERAL.—The following sums are appropriated, out of any
money in the Treasury not otherwise appropriated, for the fiscal
year ending September 30, 2022:
(1) INTERNAL REVENUE SERVICE.—
(A) IN GENERAL.—
(i) TAXPAYER SERVICES.—For necessary expenses
of the Internal Revenue Service to provide taxpayer
services, including pre-filing assistance and education,
filing and account services, taxpayer advocacy services,
and other services as authorized by 5 U.S.C. 3109,
at such rates as may be determined by the Commis-
sioner, $3,181,500,000, to remain available until Sep-
tember 30, 2031: Provided, That these amounts shall
be in addition to amounts otherwise available for such
purposes.
(ii) ENFORCEMENT.—For necessary expenses for tax
enforcement activities of the Internal Revenue Service
to determine and collect owed taxes, to provide legal
and litigation support, to conduct criminal investiga-
tions (including investigative technology), to provide
digital asset monitoring and compliance activities, to
enforce criminal statutes related to violations of
internal revenue laws and other financial crimes, to
purchase and hire passenger motor vehicles (31 U.S.C.
H. R. 5376—15
1343(b)), and to provide other services as authorized
by 5 U.S.C. 3109, at such rates as may be determined
by the Commissioner, $45,637,400,000, to remain avail-
able until September 30, 2031: Provided, That these
amounts shall be in addition to amounts otherwise
available for such purposes.
(iii) OPERATIONS SUPPORT.—For necessary
expenses of the Internal Revenue Service to support
taxpayer services and enforcement programs, including
rent payments; facilities services; printing; postage;
physical security; headquarters and other IRS-wide
administration activities; research and statistics of
income; telecommunications; information technology
development, enhancement, operations, maintenance,
and security; the hire of passenger motor vehicles (31
U.S.C. 1343(b)); the operations of the Internal Revenue
Service Oversight Board; and other services as author-
ized by 5 U.S.C. 3109, at such rates as may be deter-
mined by the Commissioner, $25,326,400,000, to
remain available until September 30, 2031: Provided,
That these amounts shall be in addition to amounts
otherwise available for such purposes.
(iv) BUSINESS SYSTEMS MODERNIZATION.—For nec-
essary expenses of the Internal Revenue Service’s busi-
ness systems modernization program, including
development of callback technology and other tech-
nology to provide a more personalized customer service
but not including the operation and maintenance of
legacy systems, $4,750,700,000, to remain available
until September 30, 2031: Provided, That these
amounts shall be in addition to amounts otherwise
available for such purposes.
(B) TASK FORCE TO DESIGN AN IRS-RUN FREE ‘‘DIRECT
EFILE’’ TAX RETURN SYSTEM.—For necessary expenses of
the Internal Revenue Service to deliver to Congress, within
nine months following the date of the enactment of this
Act, a report on (I) the cost (including options for differen-
tial coverage based on taxpayer adjusted gross income and
return complexity) of developing and running a free direct
efile tax return system, including costs to build and admin-
ister each release, with a focus on multi-lingual and mobile-
friendly features and safeguards for taxpayer data; (II)
taxpayer opinions, expectations, and level of trust, based
on surveys, for such a free direct efile system; and (III)
the opinions of an independent third-party on the overall
feasibility, approach, schedule, cost, organizational design,
and Internal Revenue Service capacity to deliver such a
direct efile tax return system, $15,000,000, to remain avail-
able until September 30, 2023: Provided, That these
amounts shall be in addition to amounts otherwise avail-
able for such purposes.
(2) TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRA-
TION.—For necessary expenses of the Treasury Inspector Gen-
eral for Tax Administration in carrying out the Inspector Gen-
eral Act of 1978, as amended, including purchase and hire
of passenger motor vehicles (31 U.S.C. 1343(b)); and services
H. R. 5376—16
authorized by 5 U.S.C. 3109, at such rates as may be deter-
mined by the Inspector General for Tax Administration,
$403,000,000, to remain available until September 30, 2031:
Provided, That these amounts shall be in addition to amounts
otherwise available for such purposes.
(3) OFFICE OF TAX POLICY.—For necessary expenses of the
Office of Tax Policy of the Department of the Treasury to
carry out functions related to promulgating regulations under
the Internal Revenue Code of 1986, $104,533,803, to remain
available until September 30, 2031: Provided, That these
amounts shall be in addition to amounts otherwise available
for such purposes.
(4) UNITED STATES TAX COURT.—For necessary expenses
of the United States Tax Court, including contract reporting
and other services as authorized by 5 U.S.C. 3109;
$153,000,000, to remain available until September 30, 2031:
Provided, That these amounts shall be in addition to amounts
otherwise available for such purposes.
(5) TREASURY DEPARTMENTAL OFFICES.—For necessary
expenses of the Departmental Offices of the Department of
the Treasury to provide for oversight and implementation sup-
port for actions by the Internal Revenue Service to implement
this Act and the amendments made by this Act, $50,000,000,
to remain available until September 30, 2031: Provided, That
these amounts shall be in addition to amounts otherwise avail-
able for such purposes.
Subtitle B—Prescription Drug Pricing
Reform
PART 1—LOWERING PRICES THROUGH DRUG
PRICE NEGOTIATION
SEC. 11001. PROVIDING FOR LOWER PRICES FOR CERTAIN HIGH-
PRICED SINGLE SOURCE DRUGS.
(a) PROGRAM TO LOWER PRICES FOR CERTAIN HIGH-PRICED
SINGLE SOURCE DRUGS.—Title XI of the Social Security Act is
amended by adding after section 1184 (42 U.S.C. 1320e–3) the
following new part:
‘‘PART E—PRICE NEGOTIATION PROGRAM TO
LOWER PRICES FOR CERTAIN HIGH-PRICED
SINGLE SOURCE DRUGS
‘‘SEC. 1191. ESTABLISHMENT OF PROGRAM.
‘‘(a) IN GENERAL.—The Secretary shall establish a Drug Price
Negotiation Program (in this part referred to as the ‘program’).
Under the program, with respect to each price applicability period,
the Secretary shall—
‘‘(1) publish a list of selected drugs in accordance with
section 1192;
‘‘(2) enter into agreements with manufacturers of selected
drugs with respect to such period, in accordance with section
1193;
H. R. 5376—17
‘‘(3) negotiate and, if applicable, renegotiate maximum fair
prices for such selected drugs, in accordance with section 1194;
‘‘(4) carry out the publication and administrative duties
and compliance monitoring in accordance with sections 1195
and 1196.
‘‘(b) DEFINITIONS RELATING TO TIMING.—For purposes of this
part:
‘‘(1) INITIAL PRICE APPLICABILITY YEAR.—The term ‘initial
price applicability year’ means a year (beginning with 2026).
‘‘(2) PRICE APPLICABILITY PERIOD.—The term ‘price applica-
bility period’ means, with respect to a qualifying single source
drug, the period beginning with the first initial price applica-
bility year with respect to which such drug is a selected drug
and ending with the last year during which the drug is a
selected drug.
‘‘(3) SELECTED DRUG PUBLICATION DATE.—The term ‘selected
drug publication date’ means, with respect to each initial price
applicability year, February 1 of the year that begins 2 years
prior to such year.
‘‘(4) NEGOTIATION PERIOD.—The term ‘negotiation period’
means, with respect to an initial price applicability year with
respect to a selected drug, the period—
‘‘(A) beginning on the sooner of—
‘‘(i) the date on which the manufacturer of the
drug and the Secretary enter into an agreement under
section 1193 with respect to such drug; or
‘‘(ii) February 28 following the selected drug
publication date with respect to such selected drug;
and
‘‘(B) ending on November 1 of the year that begins
2 years prior to the initial price applicability year.
‘‘(c) OTHER DEFINITIONS.—For purposes of this part:
‘‘(1) MANUFACTURER.—The term ‘manufacturer’ has the
meaning given that term in section 1847A(c)(6)(A).
‘‘(2) MAXIMUM FAIR PRICE ELIGIBLE INDIVIDUAL.—The term
‘maximum fair price eligible individual’ means, with respect
to a selected drug—
‘‘(A) in the case such drug is dispensed to the individual
at a pharmacy, by a mail order service, or by another
dispenser, an individual who is enrolled in a prescription
drug plan under part D of title XVIII or an MA–PD plan
under part C of such title if coverage is provided under
such plan for such selected drug; and
‘‘(B) in the case such drug is furnished or administered
to the individual by a hospital, physician, or other provider
of services or supplier, an individual who is enrolled under
part B of title XVIII, including an individual who is enrolled
in an MA plan under part C of such title, if payment
may be made under part B for such selected drug.
‘‘(3) MAXIMUM FAIR PRICE.—The term ‘maximum fair price’
means, with respect to a year during a price applicability
period and with respect to a selected drug (as defined in section
1192(c)) with respect to such period, the price negotiated pursu-
ant to section 1194, and updated pursuant to section 1195(b),
as applicable, for such drug and year.
H. R. 5376—18
‘‘(4) REFERENCE PRODUCT.—The term ‘reference product’
has the meaning given such term in section 351(i) of the Public
Health Service Act.
‘‘(5) TOTAL EXPENDITURES.—The term ‘total expenditures’
includes, in the case of expenditures with respect to part D
of title XVIII, the total gross covered prescription drug costs
(as defined in section 1860D–15(b)(3)). The term ‘total expendi-
tures’ excludes, in the case of expenditures with respect to
part B of such title, expenditures for a drug or biological product
that are bundled or packaged into the payment for another
service.
‘‘(6) UNIT.—The term ‘unit’ means, with respect to a drug
or biological product, the lowest identifiable amount (such as
a capsule or tablet, milligram of molecules, or grams) of the
drug or biological product that is dispensed or furnished.
‘‘(d) TIMING FOR INITIAL PRICE APPLICABILITY YEAR 2026.—
Notwithstanding the provisions of this part, in the case of initial
price applicability year 2026, the following rules shall apply for
purposes of implementing the program:
‘‘(1) Subsection (b)(3) shall be applied by substituting ‘Sep-
tember 1, 2023’ for ‘, with respect to each initial price applica-
bility year, February 1 of the year that begins 2 years prior
to such year’.
‘‘(2) Subsection (b)(4) shall be applied—
‘‘(A) in subparagraph (A)(ii), by substituting ‘October
1, 2023’ for ‘February 28 following the selected drug
publication date with respect to such selected drug’; and
‘‘(B) in subparagraph (B), by substituting ‘August 1,
2024’ for ‘November 1 of the year that begins 2 years
prior to the initial price applicability year’.
‘‘(3) Section 1192 shall be applied—
‘‘(A) in subsection (b)(1)(A), by substituting ‘during the
period beginning on June 1, 2022, and ending on May
31, 2023’ for ‘during the most recent period of 12 months
prior to the selected drug publication date (but ending
not later than October 31 of the year prior to the year
of such drug publication date), with respect to such year,
for which data are available’; and
‘‘(B) in subsection (d)(1)(A), by substituting ‘during the
period beginning on June 1, 2022, and ending on May
31, 2023’ for ‘during the most recent period for which
data are available of at least 12 months prior to the selected
drug publication date (but ending no later than October
31 of the year prior to the year of such drug publication
date), with respect to such year’.
‘‘(4) Section 1193(a) shall be applied by substituting
‘October 1, 2023’ for ‘February 28 following the selected drug
publication date with respect to such selected drug’.
‘‘(5) Section 1194(b)(2) shall be applied—
‘‘(A) in subparagraph (A), by substituting ‘October 2,
2023’ for ‘March 1 of the year of the selected drug publica-
tion date, with respect to the selected drug’;
‘‘(B) in subparagraph (B), by substituting ‘February
1, 2024’ for ‘the June 1 following the selected drug publica-
tion date’; and
‘‘(C) in subparagraph (E), by substituting ‘August 1,
2024’ for ‘the first day of November following the selected
H. R. 5376—19
drug publication date, with respect to the initial price
applicability year ’.
‘‘(6) Section 1195(a)(1) shall be applied by substituting ‘Sep-
tember 1, 2024’ for ‘November 30 of the year that is 2 years
prior to such initial price applicability year’.
‘‘SEC. 1192. SELECTION OF NEGOTIATION-ELIGIBLE DRUGS AS
SELECTED DRUGS.
‘‘(a) IN GENERAL.—Not later than the selected drug publication
date with respect to an initial price applicability year, in accordance
with subsection (b), the Secretary shall select and publish a list
of—
‘‘(1) with respect to the initial price applicability year 2026,
10 negotiation-eligible drugs described in subparagraph (A) of
subsection (d)(1), but not subparagraph (B) of such subsection,
with respect to such year (or, all (if such number is less than
10) such negotiation-eligible drugs with respect to such year);
‘‘(2) with respect to the initial price applicability year 2027,
15 negotiation-eligible drugs described in subparagraph (A) of
subsection (d)(1), but not subparagraph (B) of such subsection,
with respect to such year (or, all (if such number is less than
15) such negotiation-eligible drugs with respect to such year);
‘‘(3) with respect to the initial price applicability year 2028,
15 negotiation-eligible drugs described in subparagraph (A) or
(B) of subsection (d)(1) with respect to such year (or, all (if
such number is less than 15) such negotiation-eligible drugs
with respect to such year); and
‘‘(4) with respect to the initial price applicability year 2029
or a subsequent year, 20 negotiation-eligible drugs described
in subparagraph (A) or (B) of subsection (d)(1), with respect
to such year (or, all (if such number is less than 20) such
negotiation-eligible drugs with respect to such year).
Subject to subsection (c)(2) and section 1194(f)(5), each drug pub-
lished on the list pursuant to the previous sentence shall be subject
to the negotiation process under section 1194 for the negotiation
period with respect to such initial price applicability year (and
the renegotiation process under such section as applicable for any
subsequent year during the applicable price applicability period).
‘‘(b) SELECTION OF DRUGS.—
‘‘(1) IN GENERAL.—In carrying out subsection (a), subject
to paragraph (2), the Secretary shall, with respect to an initial
price applicability year, do the following:
‘‘(A) Rank negotiation-eligible drugs described in sub-
section (d)(1) according to the total expenditures for such
drugs under parts B and D of title XVIII, as determined
by the Secretary, during the most recent period of 12
months prior to the selected drug publication date (but
ending not later than October 31 of the year prior to
the year of such drug publication date), with respect to
such year, for which data are available, with the negotia-
tion-eligible drugs with the highest total expenditures being
ranked the highest.
‘‘(B) Select from such ranked drugs with respect to
such year the negotiation-eligible drugs with the highest
such rankings.
‘‘(2) HIGH SPEND PART D DRUGS FOR 2026 AND 2027.—With
respect to the initial price applicability year 2026 and with
H. R. 5376—20
respect to the initial price applicability year 2027, the Secretary
shall apply paragraph (1) as if the reference to ‘negotiation-
eligible drugs described in subsection (d)(1)’ were a reference
to ‘negotiation-eligible drugs described in subsection (d)(1)(A)’
and as if the reference to ‘total expenditures for such drugs
under parts B and D of title XVIII’ were a reference to ‘total
expenditures for such drugs under part D of title XVIII’.
‘‘(c) SELECTED DRUG.—
‘‘(1) IN GENERAL.—For purposes of this part, in accordance
with subsection (e)(2) and subject to paragraph (2), each nego-
tiation-eligible drug included on the list published under sub-
section (a) with respect to an initial price applicability year
shall be referred to as a ‘selected drug’ with respect to such
year and each subsequent year beginning before the first year
that begins at least 9 months after the date on which the
Secretary determines at least one drug or biological product—
‘‘(A) is approved or licensed (as applicable)—
‘‘(i) under section 505(j) of the Federal Food, Drug,
and Cosmetic Act using such drug as the listed drug;
or
‘‘(ii) under section 351(k) of the Public Health
Service Act using such drug as the reference product;
and
‘‘(B) is marketed pursuant to such approval or licen-
sure.
‘‘(2) CLARIFICATION.—A negotiation-eligible drug—
‘‘(A) that is included on the list published under sub-
section (a) with respect to an initial price applicability
year; and
‘‘(B) for which the Secretary makes a determination
described in paragraph (1) before or during the negotiation
period with respect to such initial price applicability year;
shall not be subject to the negotiation process under section
1194 with respect to such negotiation period and shall continue
to be considered a selected drug under this part with respect
to the number of negotiation-eligible drugs published on the
list under subsection (a) with respect to such initial price
applicability year.
‘‘(d) NEGOTIATION-ELIGIBLE DRUG.—
‘‘(1) IN GENERAL.—For purposes of this part, subject to
paragraph (2), the term ‘negotiation-eligible drug’ means, with
respect to the selected drug publication date with respect to
an initial price applicability year, a qualifying single source
drug, as defined in subsection (e), that is described in either
of the following subparagraphs (or, with respect to the initial
price applicability year 2026 or 2027, that is described in
subparagraph (A)):
‘‘(A) PART D HIGH SPEND DRUGS.—The qualifying single
source drug is, determined in accordance with subsection
(e)(2), among the 50 qualifying single source drugs with
the highest total expenditures under part D of title XVIII,
as determined by the Secretary in accordance with para-
graph (3), during the most recent 12-month period for
which data are available prior to such selected drug
publication date (but ending no later than October 31 of
the year prior to the year of such drug publication date).
H. R. 5376—21
‘‘(B) PART B HIGH SPEND DRUGS.—The qualifying single
source drug is, determined in accordance with subsection
(e)(2), among the 50 qualifying single source drugs with
the highest total expenditures under part B of title XVIII,
as determined by the Secretary in accordance with para-
graph (3), during such most recent 12-month period, as
described in subparagraph (A).
‘‘(2) EXCEPTION FOR SMALL BIOTECH DRUGS.—
‘‘(A) IN GENERAL.—Subject to subparagraph (C), the
term ‘negotiation-eligible drug’ shall not include, with
respect to the initial price applicability years 2026, 2027,
and 2028, a qualifying single source drug that meets either
of the following:
‘‘(i) PART D DRUGS.—The total expenditures for
the qualifying single source drug under part D of title
XVIII, as determined by the Secretary in accordance
with paragraph (3)(B), during 2021—
‘‘(I) are equal to or less than 1 percent of
the total expenditures under such part D, as so
determined, for all covered part D drugs (as
defined in section 1860D–2(e)) during such year;
and
‘‘(II) are equal to at least 80 percent of the
total expenditures under such part D, as so deter-
mined, for all covered part D drugs for which
the manufacturer of the drug has an agreement
in effect under section 1860D–14A during such
year.
‘‘(ii) PART B DRUGS.—The total expenditures for
the qualifying single source drug under part B of title
XVIII, as determined by the Secretary in accordance
with paragraph (3)(B), during 2021—
‘‘(I) are equal to or less than 1 percent of
the total expenditures under such part B, as so
determined, for all qualifying single source drugs
for which payment may be made under such part
B during such year; and
‘‘(II) are equal to at least 80 percent of the
total expenditures under such part B, as so deter-
mined, for all qualifying single source drugs of
the manufacturer for which payment may be made
under such part B during such year.
‘‘(B) CLARIFICATIONS RELATING TO MANUFACTURERS.—
‘‘(i) AGGREGATION RULE.—All persons treated as
a single employer under subsection (a) or (b) of section
52 of the Internal Revenue Code of 1986 shall be
treated as one manufacturer for purposes of this para-
graph.
‘‘(ii) LIMITATION.—A drug shall not be considered
to be a qualifying single source drug described in clause
(i) or (ii) of subparagraph (A) if the manufacturer of
such drug is acquired after 2021 by another manufac-
turer that does not meet the definition of a specified
manufacturer under section 1860D–14C(g)(4)(B)(ii),
effective at the beginning of the plan year immediately
following such acquisition or, in the case of an acquisi-
tion before 2025, effective January 1, 2025.
H. R. 5376—22
‘‘(C) DRUGS NOT INCLUDED AS SMALL BIOTECH DRUGS.—
A new formulation, such as an extended release formula-
tion, of a qualifying single source drug shall not be consid-
ered a qualifying single source drug described in subpara-
graph (A).
‘‘(3) CLARIFICATIONS AND DETERMINATIONS.—
‘‘(A) PREVIOUSLY SELECTED DRUGS AND SMALL BIOTECH
DRUGS EXCLUDED.—In applying subparagraphs (A) and (B)
of paragraph (1), the Secretary shall not consider or count—
‘‘(i) drugs that are already selected drugs; and
‘‘(ii) for initial price applicability years 2026, 2027,
and 2028, qualifying single source drugs described in
paragraph (2)(A).
‘‘(B) USE OF DATA.—In determining whether a quali-
fying single source drug satisfies any of the criteria
described in paragraph (1) or (2), the Secretary shall use
data that is aggregated across dosage forms and strengths
of the drug, including new formulations of the drug, such
as an extended release formulation, and not based on the
specific formulation or package size or package type of
the drug.
‘‘(e) QUALIFYING SINGLE SOURCE DRUG.—
‘‘(1) IN GENERAL.—For purposes of this part, the term ‘quali-
fying single source drug’ means, with respect to an initial
price applicability year, subject to paragraphs (2) and (3), a
covered part D drug (as defined in section 1860D–2(e)) that
is described in any of the following or a drug or biological
product for which payment may be made under part B of
title XVIII that is described in any of the following:
‘‘(A) DRUG PRODUCTS.—A drug—
‘‘(i) that is approved under section 505(c) of the
Federal Food, Drug, and Cosmetic Act and is marketed
pursuant to such approval;
‘‘(ii) for which, as of the selected drug publication
date with respect to such initial price applicability
year, at least 7 years will have elapsed since the date
of such approval; and
‘‘(iii) that is not the listed drug for any drug that
is approved and marketed under section 505(j) of such
Act.
‘‘(B) BIOLOGICAL PRODUCTS.—A biological product—
‘‘(i) that is licensed under section 351(a) of the
Public Health Service Act and is marketed under sec-
tion 351 of such Act;
‘‘(ii) for which, as of the selected drug publication
date with respect to such initial price applicability
year, at least 11 years will have elapsed since the
date of such licensure; and
‘‘(iii) that is not the reference product for any
biological product that is licensed and marketed under
section 351(k) of such Act.
‘‘(2) TREATMENT OF AUTHORIZED GENERIC DRUGS.—
‘‘(A) IN GENERAL.—In the case of a qualifying single
source drug described in subparagraph (A) or (B) of para-
graph (1) that is the listed drug (as such term is used
in section 505(j) of the Federal Food, Drug, and Cosmetic
Act) or a product described in clause (ii) of subparagraph
H. R. 5376—23
(B), with respect to an authorized generic drug, in applying
the provisions of this part, such authorized generic drug
and such listed drug or such product shall be treated
as the same qualifying single source drug.
‘‘(B) AUTHORIZED GENERIC DRUG DEFINED.—For pur-
poses of this paragraph, the term ‘authorized generic drug’
means—
‘‘(i) in the case of a drug, an authorized generic
drug (as such term is defined in section 505(t)(3) of
the Federal Food, Drug, and Cosmetic Act); and
‘‘(ii) in the case of a biological product, a product
that—
‘‘(I) has been licensed under section 351(a)
of such Act; and
‘‘(II) is marketed, sold, or distributed directly
or indirectly to retail class of trade under a dif-
ferent labeling, packaging (other than repackaging
as the reference product in blister packs, unit
doses, or similar packaging for use in institutions),
product code, labeler code, trade name, or trade
mark than the reference product.
‘‘(3) EXCLUSIONS.—In this part, the term ‘qualifying single
source drug’ does not include any of the following:
‘‘(A) CERTAIN ORPHAN DRUGS.—A drug that is des-
ignated as a drug for only one rare disease or condition
under section 526 of the Federal Food, Drug, and Cosmetic
Act and for which the only approved indication (or indica-
tions) is for such disease or condition.
‘‘(B) LOW SPEND MEDICARE DRUGS.—A drug or biological
product with respect to which the total expenditures under
parts B and D of title XVIII, as determined by the Secretary
in accordance with subsection (d)(3)(B)—
‘‘(i) with respect to initial price applicability year
2026, is less than, during the period beginning on
June 1, 2022, and ending on May 31, 2023,
$200,000,000;
‘‘(ii) with respect to initial price applicability year
2027, is less than, during the most recent 12-month
period applicable under subparagraphs (A) and (B) of
subsection (d)(1) for such year, the dollar amount speci-
fied in clause (i) increased by the annual percentage
increase in the consumer price index for all urban
consumers (all items; United States city average) for
the period beginning on June 1, 2023, and ending
on September 30, 2024; or
‘‘(iii) with respect to a subsequent initial price
applicability year, is less than, during the most recent
12-month period applicable under subparagraphs (A)
and (B) of subsection (d)(1) for such year, the dollar
amount specified in this subparagraph for the previous
initial price applicability year increased by the annual
percentage increase in such consumer price index for
the 12-month period ending on September 30 of the
year prior to the year of the selected drug publication
date with respect to such subsequent initial price
applicability year.
H. R. 5376—24
‘‘(C) PLASMA-DERIVED PRODUCTS.—A biological product
that is derived from human whole blood or plasma.
‘‘SEC. 1193. MANUFACTURER AGREEMENTS.
‘‘(a) IN GENERAL.—For purposes of section 1191(a)(2), the Sec-
retary shall enter into agreements with manufacturers of selected
drugs with respect to a price applicability period, by not later
than February 28 following the selected drug publication date with
respect to such selected drug, under which—
‘‘(1) during the negotiation period for the initial price
applicability year for the selected drug, the Secretary and the
manufacturer, in accordance with section 1194, negotiate to
determine (and, by not later than the last date of such period,
agree to) a maximum fair price for such selected drug of the
manufacturer in order for the manufacturer to provide access
to such price—
‘‘(A) to maximum fair price eligible individuals who
with respect to such drug are described in subparagraph
(A) of section 1191(c)(2) and are dispensed such drug (and
to pharmacies, mail order services, and other dispensers,
with respect to such maximum fair price eligible individuals
who are dispensed such drugs) during, subject to paragraph
(2), the price applicability period; and
‘‘(B) to hospitals, physicians, and other providers of
services and suppliers with respect to maximum fair price
eligible individuals who with respect to such drug are
described in subparagraph (B) of such section and are
furnished or administered such drug during, subject to
paragraph (2), the price applicability period;
‘‘(2) the Secretary and the manufacturer shall, in accord-
ance with section 1194, renegotiate (and, by not later than
the last date of the period of renegotiation, agree to) the max-
imum fair price for such drug, in order for the manufacturer
to provide access to such maximum fair price (as so renegoti-
ated)—
‘‘(A) to maximum fair price eligible individuals who
with respect to such drug are described in subparagraph
(A) of section 1191(c)(2) and are dispensed such drug (and
to pharmacies, mail order services, and other dispensers,
with respect to such maximum fair price eligible individuals
who are dispensed such drugs) during any year during
the price applicability period (beginning after such renegoti-
ation) with respect to such selected drug; and
‘‘(B) to hospitals, physicians, and other providers of
services and suppliers with respect to maximum fair price
eligible individuals who with respect to such drug are
described in subparagraph (B) of such section and are
furnished or administered such drug during any year
described in subparagraph (A);
‘‘(3) subject to subsection (d), access to the maximum fair
price (including as renegotiated pursuant to paragraph (2)),
with respect to such a selected drug, shall be provided by
the manufacturer to—
‘‘(A) maximum fair price eligible individuals, who with
respect to such drug are described in subparagraph (A)
of section 1191(c)(2), at the pharmacy, mail order service,
or other dispenser at the point-of-sale of such drug (and
H. R. 5376—25
shall be provided by the manufacturer to the pharmacy,
mail order service, or other dispenser, with respect to such
maximum fair price eligible individuals who are dispensed
such drugs), as described in paragraph (1)(A) or (2)(A),
as applicable; and
‘‘(B) hospitals, physicians, and other providers of serv-
ices and suppliers with respect to maximum fair price
eligible individuals who with respect to such drug are
described in subparagraph (B) of such section and are
furnished or administered such drug, as described in para-
graph (1)(B) or (2)(B), as applicable;
‘‘(4) the manufacturer submits to the Secretary, in a form
and manner specified by the Secretary, for the negotiation
period for the price applicability period (and, if applicable,
before any period of renegotiation pursuant to section 1194(f))
with respect to such drug—
‘‘(A) information on the non-Federal average manufac-
turer price (as defined in section 8126(h)(5) of title 38,
United States Code) for the drug for the applicable year
or period; and
‘‘(B) information that the Secretary requires to carry
out the negotiation (or renegotiation process) under this
part; and
‘‘(5) the manufacturer complies with requirements deter-
mined by the Secretary to be necessary for purposes of admin-
istering the program and monitoring compliance with the pro-
gram.
‘‘(b) AGREEMENT IN EFFECT UNTIL DRUG IS NO LONGER A
SELECTED DRUG.—An agreement entered into under this section
shall be effective, with respect to a selected drug, until such drug
is no longer considered a selected drug under section 1192(c).
‘‘(c) CONFIDENTIALITY OF INFORMATION.—Information submitted
to the Secretary under this part by a manufacturer of a selected
drug that is proprietary information of such manufacturer (as deter-
mined by the Secretary) shall be used only by the Secretary or
disclosed to and used by the Comptroller General of the United
States for purposes of carrying out this part.
‘‘(d) NONDUPLICATION WITH 340B CEILING PRICE.—Under an
agreement entered into under this section, the manufacturer of
a selected drug—
‘‘(1) shall not be required to provide access to the maximum
fair price under subsection (a)(3), with respect to such selected
drug and maximum fair price eligible individuals who are
eligible to be furnished, administered, or dispensed such
selected drug at a covered entity described in section 340B(a)(4)
of the Public Health Service Act, to such covered entity if
such selected drug is subject to an agreement described in
section 340B(a)(1) of such Act and the ceiling price (defined
in section 340B(a)(1) of such Act) is lower than the maximum
fair price for such selected drug; and
‘‘(2) shall be required to provide access to the maximum
fair price to such covered entity with respect to maximum
fair price eligible individuals who are eligible to be furnished,
administered, or dispensed such selected drug at such entity
at such ceiling price in a nonduplicated amount to the ceiling
price if such maximum fair price is below the ceiling price
for such selected drug.
H. R. 5376—26
‘‘SEC. 1194. NEGOTIATION AND RENEGOTIATION PROCESS.
‘‘(a) IN GENERAL.—For purposes of this part, under an agree-
ment under section 1193 between the Secretary and a manufacturer
of a selected drug (or selected drugs), with respect to the period
for which such agreement is in effect and in accordance with sub-
sections (b), (c), and (d), the Secretary and the manufacturer—
‘‘(1) shall during the negotiation period with respect to
such drug, in accordance with this section, negotiate a max-
imum fair price for such drug for the purpose described in
section 1193(a)(1); and
‘‘(2) renegotiate, in accordance with the process specified
pursuant to subsection (f), such maximum fair price for such
drug for the purpose described in section 1193(a)(2) if such
drug is a renegotiation-eligible drug under such subsection.
‘‘(b) NEGOTIATION PROCESS REQUIREMENTS.—
‘‘(1) METHODOLOGY AND PROCESS.—The Secretary shall
develop and use a consistent methodology and process, in
accordance with paragraph (2), for negotiations under sub-
section (a) that aims to achieve the lowest maximum fair price
for each selected drug.
‘‘(2) SPECIFIC ELEMENTS OF NEGOTIATION PROCESS.—As part
of the negotiation process under this section, with respect to
a selected drug and the negotiation period with respect to
the initial price applicability year with respect to such drug,
the following shall apply:
‘‘(A) SUBMISSION OF INFORMATION.—Not later than
March 1 of the year of the selected drug publication date,
with respect to the selected drug, the manufacturer of
the drug shall submit to the Secretary, in accordance with
section 1193(a)(4), the information described in such sec-
tion.
‘‘(B) INITIAL OFFER BY SECRETARY.—Not later than the
June 1 following the selected drug publication date, the
Secretary shall provide the manufacturer of the selected
drug with a written initial offer that contains the Sec-
retary’s proposal for the maximum fair price of the drug
and a concise justification based on the factors described
in section 1194(e) that were used in developing such offer.
‘‘(C) RESPONSE TO INITIAL OFFER.—
‘‘(i) IN GENERAL.—Not later than 30 days after
the date of receipt of an initial offer under subpara-
graph (B), the manufacturer shall either accept such
offer or propose a counteroffer to such offer.
‘‘(ii) COUNTEROFFER REQUIREMENTS.—If a manu-
facturer proposes a counteroffer, such counteroffer—
‘‘(I) shall be in writing; and
‘‘(II) shall be justified based on the factors
described in subsection (e).
‘‘(D) RESPONSE TO COUNTEROFFER.—After receiving a
counteroffer under subparagraph (C), the Secretary shall
respond in writing to such counteroffer.
‘‘(E) DEADLINE.—All negotiations between the Sec-
retary and the manufacturer of the selected drug shall
end prior to the first day of November following the selected
drug publication date, with respect to the initial price
applicability year.
H. R. 5376—27
‘‘(F) LIMITATIONS ON OFFER AMOUNT.—In negotiating
the maximum fair price of a selected drug, with respect
to the initial price applicability year for the selected drug,
and, as applicable, in renegotiating the maximum fair price
for such drug, with respect to a subsequent year during
the price applicability period for such drug, the Secretary
shall not offer (or agree to a counteroffer for) a maximum
fair price for the selected drug that—
‘‘(i) exceeds the ceiling determined under sub-
section (c) for the selected drug and year; or
‘‘(ii) as applicable, is less than the floor determined
under subsection (d) for the selected drug and year.
‘‘(c) CEILING FOR MAXIMUM FAIR PRICE.—
‘‘(1) GENERAL CEILING.—
‘‘(A) IN GENERAL.—The maximum fair price negotiated
under this section for a selected drug, with respect to
the first initial price applicability year of the price applica-
bility period with respect to such drug, shall not exceed
the lower of the amount under subparagraph (B) or the
amount under subparagraph (C).
‘‘(B) SUBPARAGRAPH (B) AMOUNT.—An amount equal
to the following:
‘‘(i) COVERED PART D DRUG.—In the case of a cov-
ered part D drug (as defined in section 1860D–2(e)),
the sum of the plan specific enrollment weighted
amounts for each prescription drug plan or MA–PD
plan (as determined under paragraph (2)).
‘‘(ii) PART B DRUG OR BIOLOGICAL.—In the case
of a drug or biological product for which payment may
be made under part B of title XVIII, the payment
amount under section 1847A(b)(4) for the drug or
biological product for the year prior to the year of
the selected drug publication date with respect to the
initial price applicability year for the drug or biological
product.
‘‘(C) SUBPARAGRAPH (C) AMOUNT.—An amount equal
to the applicable percent described in paragraph (3), with
respect to such drug, of the following:
‘‘(i) INITIAL PRICE APPLICABILITY YEAR 2026.—In the
case of a selected drug with respect to which such
initial price applicability year is 2026, the average
non-Federal average manufacturer price for such drug
for 2021 (or, in the case that there is not an average
non-Federal average manufacturer price available for
such drug for 2021, for the first full year following
the market entry for such drug), increased by the
percentage increase in the consumer price index for
all urban consumers (all items; United States city aver-
age) from September 2021 (or December of such first
full year following the market entry), as applicable,
to September of the year prior to the year of the
selected drug publication date with respect to such
initial price applicability year.
‘‘(ii) INITIAL PRICE APPLICABILITY YEAR 2027 AND
SUBSEQUENT YEARS.—In the case of a selected drug
with respect to which such initial price applicability
year is 2027 or a subsequent year, the lower of—
H. R. 5376—28
‘‘(I) the average non-Federal average manufac-
turer price for such drug for 2021 (or, in the case
that there is not an average non-Federal average
manufacturer price available for such drug for
2021, for the first full year following the market
entry for such drug), increased by the percentage
increase in the consumer price index for all urban
consumers (all items; United States city average)
from September 2021 (or December of such first
full year following the market entry), as applicable,
to September of the year prior to the year of the
selected drug publication date with respect to such
initial price applicability year; or
‘‘(II) the average non-Federal average manu-
facturer price for such drug for the year prior
to the selected drug publication date with respect
to such initial price applicability year.
‘‘(2) PLAN SPECIFIC ENROLLMENT WEIGHTED AMOUNT.—For
purposes of paragraph (1)(B)(i), the plan specific enrollment
weighted amount for a prescription drug plan or an MA–PD
plan with respect to a covered Part D drug is an amount
equal to the product of—
‘‘(A) the negotiated price of the drug under such plan
under part D of title XVIII, net of all price concessions
received by such plan or pharmacy benefit managers on
behalf of such plan, for the most recent year for which
data is available; and
‘‘(B) a fraction—
‘‘(i) the numerator of which is the total number
of individuals enrolled in such plan in such year; and
‘‘(ii) the denominator of which is the total number
of individuals enrolled in a prescription drug plan or
an MA–PD plan in such year.
‘‘(3) APPLICABLE PERCENT DESCRIBED.—For purposes of this
subsection, the applicable percent described in this paragraph
is the following:
‘‘(A) SHORT-MONOPOLY DRUGS AND VACCINES.—With
respect to a selected drug (other than an extended-
monopoly drug and a long-monopoly drug), 75 percent.
‘‘(B) EXTENDED-MONOPOLY DRUGS.—With respect to an
extended-monopoly drug, 65 percent.
‘‘(C) LONG-MONOPOLY DRUGS.—With respect to a long-
monopoly drug, 40 percent.
‘‘(4) EXTENDED-MONOPOLY DRUG DEFINED.—
‘‘(A) IN GENERAL.—In this part, subject to subpara-
graph (B), the term ‘extended-monopoly drug’ means, with
respect to an initial price applicability year, a selected
drug for which at least 12 years, but fewer than 16 years,
have elapsed since the date of approval of such drug under
section 505(c) of the Federal Food, Drug, and Cosmetic
Act or since the date of licensure of such drug under
section 351(a) of the Public Health Service Act, as
applicable.
‘‘(B) EXCLUSIONS.—The term ‘extended-monopoly drug’
shall not include any of the following:
H. R. 5376—29
‘‘(i) A vaccine that is licensed under section 351
of the Public Health Service Act and marketed pursu-
ant to such section.
‘‘(ii) A selected drug for which a manufacturer
had an agreement under this part with the Secretary
with respect to an initial price applicability year that
is before 2030.
‘‘(C) CLARIFICATION.—Nothing in subparagraph (B)(ii)
shall limit the transition of a selected drug described in
paragraph (3)(A) to a long-monopoly drug if the selected
drug meets the definition of a long-monopoly drug.
‘‘(5) LONG-MONOPOLY DRUG DEFINED.—
‘‘(A) IN GENERAL.—In this part, subject to subpara-
graph (B), the term ‘long-monopoly drug’ means, with
respect to an initial price applicability year, a selected
drug for which at least 16 years have elapsed since the
date of approval of such drug under section 505(c) of the
Federal Food, Drug, and Cosmetic Act or since the date
of licensure of such drug under section 351(a) of the Public
Health Service Act, as applicable.
‘‘(B) EXCLUSION.—The term ‘long-monopoly drug’ shall
not include a vaccine that is licensed under section 351
of the Public Health Service Act and marketed pursuant
to such section.
‘‘(6) AVERAGE NON-FEDERAL AVERAGE MANUFACTURER
PRICE.—In this part, the term ‘average non-Federal average
manufacturer price’ means the average of the non-Federal aver-
age manufacturer price (as defined in section 8126(h)(5) of
title 38, United States Code) for the 4 calendar quarters of
the year involved.
‘‘(d) TEMPORARY FLOOR FOR SMALL BIOTECH DRUGS.—In the
case of a selected drug that is a qualifying single source drug
described in section 1192(d)(2) and with respect to which the first
initial price applicability year of the price applicability period with
respect to such drug is 2029 or 2030, the maximum fair price
negotiated under this section for such drug for such initial price
applicability year may not be less than 66 percent of the average
non-Federal average manufacturer price for such drug (as defined
in subsection (c)(6)) for 2021 (or, in the case that there is not
an average non-Federal average manufacturer price available for
such drug for 2021, for the first full year following the market
entry for such drug), increased by the percentage increase in the
consumer price index for all urban consumers (all items; United
States city average) from September 2021 (or December of such
first full year following the market entry), as applicable, to Sep-
tember of the year prior to the selected drug publication date
with respect to the initial price applicability year.
‘‘(e) FACTORS.—For purposes of negotiating the maximum fair
price of a selected drug under this part with the manufacturer
of the drug, the Secretary shall consider the following factors,
as applicable to the drug, as the basis for determining the offers
and counteroffers under subsection (b) for the drug:
‘‘(1) MANUFACTURER-SPECIFIC DATA.—The following data,
with respect to such selected drug, as submitted by the manu-
facturer:
H. R. 5376—30
‘‘(A) Research and development costs of the manufac-
turer for the drug and the extent to which the manufacturer
has recouped research and development costs.
‘‘(B) Current unit costs of production and distribution
of the drug.
‘‘(C) Prior Federal financial support for novel thera-
peutic discovery and development with respect to the drug.
‘‘(D) Data on pending and approved patent applications,
exclusivities recognized by the Food and Drug Administra-
tion, and applications and approvals under section 505(c)
of the Federal Food, Drug, and Cosmetic Act or section
351(a) of the Public Health Service Act for the drug.
‘‘(E) Market data and revenue and sales volume data
for the drug in the United States.
‘‘(2) EVIDENCE ABOUT ALTERNATIVE TREATMENTS.—The fol-
lowing evidence, as available, with respect to such selected
drug and therapeutic alternatives to such drug:
‘‘(A) The extent to which such drug represents a thera-
peutic advance as compared to existing therapeutic alter-
natives and the costs of such existing therapeutic alter-
natives.
‘‘(B) Prescribing information approved by the Food and
Drug Administration for such drug and therapeutic alter-
natives to such drug.
‘‘(C) Comparative effectiveness of such drug and thera-
peutic alternatives to such drug, taking into consideration
the effects of such drug and therapeutic alternatives to
such drug on specific populations, such as individuals with
disabilities, the elderly, the terminally ill, children, and
other patient populations.
‘‘(D) The extent to which such drug and therapeutic
alternatives to such drug address unmet medical needs
for a condition for which treatment or diagnosis is not
addressed adequately by available therapy.
In using evidence described in subparagraph (C), the Secretary
shall not use evidence from comparative clinical effectiveness
research in a manner that treats extending the life of an
elderly, disabled, or terminally ill individual as of lower value
than extending the life of an individual who is younger, non-
disabled, or not terminally ill.
‘‘(f) RENEGOTIATION PROCESS.—
‘‘(1) IN GENERAL.—In the case of a renegotiation-eligible
drug (as defined in paragraph (2)) that is selected under para-
graph (3), the Secretary shall provide for a process of renegoti-
ation (for years (beginning with 2028) during the price applica-
bility period, with respect to such drug) of the maximum fair
price for such drug consistent with paragraph (4).
‘‘(2) RENEGOTIATION-ELIGIBLE DRUG DEFINED.—In this sec-
tion, the term ‘renegotiation-eligible drug’ means a selected
drug that is any of the following:
‘‘(A) ADDITION OF NEW INDICATION.—A selected drug
for which a new indication is added to the drug.
‘‘(B) CHANGE OF STATUS TO AN EXTENDED-MONOPOLY
DRUG.—A selected drug that—
‘‘(i) is not an extended-monopoly or a long-
monopoly drug; and
H. R. 5376—31
‘‘(ii) for which there is a change in status to that
of an extended-monopoly drug.
‘‘(C) CHANGE OF STATUS TO A LONG-MONOPOLY DRUG.—
A selected drug that—
‘‘(i) is not a long-monopoly drug; and
‘‘(ii) for which there is a change in status to that
of a long-monopoly drug.
‘‘(D) MATERIAL CHANGES.—A selected drug for which
the Secretary determines there has been a material change
of any of the factors described in paragraph (1) or (2)
of subsection (e).
‘‘(3) SELECTION OF DRUGS FOR RENEGOTIATION.—For each
year (beginning with 2028), the Secretary shall select among
renegotiation-eligible drugs for renegotiation as follows:
‘‘(A) ALL EXTENDED-MONOPOLY NEGOTIATION-ELIGIBLE
DRUGS.—The Secretary shall select all renegotiation-eligible
drugs described in paragraph (2)(B).
‘‘(B) ALL LONG-MONOPOLY NEGOTIATION-ELIGIBLE
DRUGS.—The Secretary shall select all renegotiation-eligible
drugs described in paragraph (2)(C).
‘‘(C) REMAINING DRUGS.—Among the remaining renego-
tiation-eligible drugs described in subparagraphs (A) and
(D) of paragraph (2), the Secretary shall select renegoti-
ation-eligible drugs for which the Secretary expects renego-
tiation is likely to result in a significant change in the
maximum fair price otherwise negotiated.
‘‘(4) RENEGOTIATION PROCESS.—
‘‘(A) IN GENERAL.—The Secretary shall specify the
process for renegotiation of maximum fair prices with the
manufacturer of a renegotiation-eligible drug selected for
renegotiation under this subsection.
‘‘(B) CONSISTENT WITH NEGOTIATION PROCESS.—The
process specified under subparagraph (A) shall, to the
extent practicable, be consistent with the methodology and
process established under subsection (b) and in accordance
with subsections (c), (d), and (e), and for purposes of
applying subsections (c)(1)(A) and (d), the reference to the
first initial price applicability year of the price applicability
period with respect to such drug shall be treated as the
first initial price applicability year of such period for which
the maximum fair price established pursuant to such
renegotiation applies, including for applying subsection
(c)(3)(B) in the case of renegotiation-eligible drugs described
in paragraph (3)(A) of this subsection and subsection
(c)(3)(C) in the case of renegotiation-eligible drugs described
in paragraph (3)(B) of this subsection.
‘‘(5) CLARIFICATION.—A renegotiation-eligible drug for
which the Secretary makes a determination described in section
1192(c)(1) before or during the period of renegotiation shall
not be subject to the renegotiation process under this section.
‘‘(g) CLARIFICATION.—The maximum fair price for a selected
drug described in subparagraph (A) or (B) of paragraph (1) shall
take effect no later than the first day of the first calendar quarter
that begins after the date described in subparagraph (A) or (B),
as applicable.
H. R. 5376—32
‘‘SEC. 1195. PUBLICATION OF MAXIMUM FAIR PRICES.
‘‘(a) IN GENERAL.—With respect to an initial price applicability
year and a selected drug with respect to such year—
‘‘(1) not later than November 30 of the year that is 2
years prior to such initial price applicability year, the Secretary
shall publish the maximum fair price for such drug negotiated
with the manufacturer of such drug under this part; and
‘‘(2) not later than March 1 of the year prior to such
initial price applicability year, the Secretary shall publish, sub-
ject to section 1193(c), the explanation for the maximum fair
price with respect to the factors as applied under section 1194(e)
for such drug described in paragraph (1).
‘‘(b) UPDATES.—
‘‘(1) SUBSEQUENT YEAR MAXIMUM FAIR PRICES.—For a
selected drug, for each year subsequent to the first initial
price applicability year of the price applicability period with
respect to such drug, with respect to which an agreement
for such drug is in effect under section 1193, not later than
November 30 of the year that is 2 years prior to such subse-
quent year, the Secretary shall publish the maximum fair price
applicable to such drug and year, which shall be—
‘‘(A) subject to subparagraph (B), the amount equal
to the maximum fair price published for such drug for
the previous year, increased by the annual percentage
increase in the consumer price index for all urban con-
sumers (all items; United States city average) for the 12-
month period ending with the July immediately preceding
such November 30; or
‘‘(B) in the case the maximum fair price for such drug
was renegotiated, for the first year for which such price
as so renegotiated applies, such renegotiated maximum
fair price.
‘‘(2) PRICES NEGOTIATED AFTER DEADLINE.—In the case of
a selected drug with respect to an initial price applicability
year for which the maximum fair price is determined under
this part after the date of publication under this section, the
Secretary shall publish such maximum fair price by not later
than 30 days after the date such maximum price is so deter-
mined.
‘‘SEC. 1196. ADMINISTRATIVE DUTIES AND COMPLIANCE MONITORING.
‘‘(a) ADMINISTRATIVE DUTIES.—For purposes of section
1191(a)(4), the administrative duties described in this section are
the following:
‘‘(1) The establishment of procedures to ensure that the
maximum fair price for a selected drug is applied before—
‘‘(A) any coverage or financial assistance under other
health benefit plans or programs that provide coverage
or financial assistance for the purchase or provision of
prescription drug coverage on behalf of maximum fair price
eligible individuals; and
‘‘(B) any other discounts.
‘‘(2) The establishment of procedures to compute and apply
the maximum fair price across different strengths and dosage
forms of a selected drug and not based on the specific formula-
tion or package size or package type of such drug.
H. R. 5376—33
‘‘(3) The establishment of procedures to carry out the provi-
sions of this part, as applicable, with respect to—
‘‘(A) maximum fair price eligible individuals who are
enrolled in a prescription drug plan under part D of title
XVIII or an MA–PD plan under part C of such title; and
‘‘(B) maximum fair price eligible individuals who are
enrolled under part B of such title, including who are
enrolled in an MA plan under part C of such title.
‘‘(4) The establishment of a negotiation process and renego-
tiation process in accordance with section 1194.
‘‘(5) The establishment of a process for manufacturers to
submit information described in section 1194(b)(2)(A).
‘‘(6) The sharing with the Secretary of the Treasury of
such information as is necessary to determine the tax imposed
by section 5000D of the Internal Revenue Code of 1986,
including the application of such tax to a manufacturer, pro-
ducer, or importer or the determination of any date described
in section 5000D(c)(1) of such Code. For purposes of the pre-
ceding sentence, such information shall include—
‘‘(A) the date on which the Secretary receives notifica-
tion of any termination of an agreement under the Medicare
coverage gap discount program under section 1860D-14A
and the date on which any subsequent agreement under
such program is entered into;
‘‘(B) the date on which the Secretary receives notifica-
tion of any termination of an agreement under the manu-
facturer discount program under section 1860D-14C and
the date on which any subsequent agreement under such
program is entered into; and
‘‘(C) the date on which the Secretary receives notifica-
tion of any termination of a rebate agreement described
in section 1927(b) and the date on which any subsequent
rebate agreement described in such section is entered into.
‘‘(7) The establishment of procedures for purposes of
applying section 1192(d)(2)(B).
‘‘(b) COMPLIANCE MONITORING.—The Secretary shall monitor
compliance by a manufacturer with the terms of an agreement
under section 1193 and establish a mechanism through which viola-
tions of such terms shall be reported.
‘‘SEC. 1197. CIVIL MONETARY PENALTIES.
‘‘(a) VIOLATIONS RELATING TO OFFERING OF MAXIMUM FAIR
PRICE.—Any manufacturer of a selected drug that has entered
into an agreement under section 1193, with respect to a year
during the price applicability period with respect to such drug,
that does not provide access to a price that is equal to or less
than the maximum fair price for such drug for such year—
‘‘(1) to a maximum fair price eligible individual who with
respect to such drug is described in subparagraph (A) of section
1191(c)(2) and who is dispensed such drug during such year
(and to pharmacies, mail order services, and other dispensers,
with respect to such maximum fair price eligible individuals
who are dispensed such drugs); or
‘‘(2) to a hospital, physician, or other provider of services
or supplier with respect to maximum fair price eligible individ-
uals who with respect to such drug is described in subparagraph
(B) of such section and is furnished or administered such drug
H. R. 5376—34
by such hospital, physician, or provider or supplier during
such year;
shall be subject to a civil monetary penalty equal to ten times
the amount equal to the product of the number of units of such
drug so furnished, dispensed, or administered during such year
and the difference between the price for such drug made available
for such year by such manufacturer with respect to such individual
or hospital, physician, provider of services, or supplier and the
maximum fair price for such drug for such year.
‘‘(b) VIOLATIONS OF CERTAIN TERMS OF AGREEMENT.—Any
manufacturer of a selected drug that has entered into an agreement
under section 1193, with respect to a year during the price applica-
bility period with respect to such drug, that is in violation of
a requirement imposed pursuant to section 1193(a)(5), including
the requirement to submit information pursuant to section
1193(a)(4), shall be subject to a civil monetary penalty equal to
$1,000,000 for each day of such violation.
‘‘(c) FALSE INFORMATION.—Any manufacturer that knowingly
provides false information pursuant to section 1196(a)(7) shall be
subject to a civil monetary penalty equal to $100,000,000 for each
item of such false information.
‘‘(d) APPLICATION.—The provisions of section 1128A (other than
subsections (a) and (b)) shall apply to a civil monetary penalty
under this section in the same manner as such provisions apply
to a penalty or proceeding under section 1128A(a).
‘‘SEC. 1198. LIMITATION ON ADMINISTRATIVE AND JUDICIAL REVIEW.
‘‘There shall be no administrative or judicial review of any
of the following:
‘‘(1) The determination of a unit, with respect to a drug
or biological product, pursuant to section 1191(c)(6).
‘‘(2) The selection of drugs under section 1192(b), the deter-
mination of negotiation-eligible drugs under section 1192(d),
and the determination of qualifying single source drugs under
section 1192(e).
‘‘(3) The determination of a maximum fair price under
subsection (b) or (f) of section 1194.
‘‘(4) The determination of renegotiation-eligible drugs under
section 1194(f)(2) and the selection of renegotiation-eligible
drugs under section 1194(f)(3).’’.
(b) APPLICATION OF MAXIMUM FAIR PRICES AND CONFORMING
AMENDMENTS.—
(1) UNDER MEDICARE.—
(A) APPLICATION TO PAYMENTS UNDER PART B.—Section
1847A(b)(1)(B) of the Social Security Act (42 U.S.C. 1395w–
3a(b)(1)(B)) is amended by inserting ‘‘or in the case of
such a drug or biological product that is a selected drug
(as referred to in section 1192(c)), with respect to a price
applicability period (as defined in section 1191(b)(2)), 106
percent of the maximum fair price (as defined in section
1191(c)(3)) applicable for such drug and a year during
such period’’ after ‘‘paragraph (4)’’.
(B) APPLICATION UNDER MA OF COST-SHARING FOR PART
B DRUGS BASED OFF OF NEGOTIATED PRICE.—Section
1852(a)(1)(B)(iv) of the Social Security Act (42 U.S.C.
1395w–22(a)(1)(B)(iv)) is amended—
H. R. 5376—35
(i) by redesignating subclause (VII) as subclause
(VIII); and
(ii) by inserting after subclause (VI) the following
subclause:
‘‘(VII) A drug or biological product that is a
selected drug (as referred to in section 1192(c)).’’.
(C) EXCEPTION TO PART D NON-INTERFERENCE.—Section
1860D–11(i) of the Social Security Act (42 U.S.C. 1395w–
111(i)) is amended—
(i) in paragraph (1), by striking ‘‘and’’ at the end;
(ii) in paragraph (2), by striking ‘‘or institute a
price structure for the reimbursement of covered part
D drugs.’’ and inserting ‘‘, except as provided under
section 1860D–4(b)(3)(l); and’’; and
(iii) by adding at the end the following new para-
graph:
‘‘(3) may not institute a price structure for the reimburse-
ment of covered part D drugs, except as provided under part
E of title XI.’’.
(D) APPLICATION AS NEGOTIATED PRICE UNDER PART
D.—Section 1860D–2(d)(1) of the Social Security Act (42
U.S.C. 1395w–102(d)(1)) is amended—
(i) in subparagraph (B), by inserting ‘‘, subject
to subparagraph (D),’’ after ‘‘negotiated prices’’; and
(ii) by adding at the end the following new
subparagraph:
‘‘(D) APPLICATION OF MAXIMUM FAIR PRICE FOR
SELECTED DRUGS.—In applying this section, in the case
of a covered part D drug that is a selected drug (as referred
to in section 1192(c)), with respect to a price applicability
period (as defined in section 1191(b)(2)), the negotiated
prices used for payment (as described in this subsection)
shall be no greater than the maximum fair price (as defined
in section 1191(c)(3)) for such drug and for each year during
such period plus any dispensing fees for such drug.’’.
(E) COVERAGE OF SELECTED DRUGS.—Section 1860D–
4(b)(3) of the Social Security Act (42 U.S.C. 1395w–
104(b)(3)) is amended by adding at the end the following
new subparagraph:
‘‘(I) REQUIRED INCLUSION OF SELECTED DRUGS.—
‘‘(i) IN GENERAL.—For 2026 and each subsequent
year, the PDP sponsor offering a prescription drug
plan shall include each covered part D drug that is
a selected drug under section 1192 for which a max-
imum fair price (as defined in section 1191(c)(3)) is
in effect with respect to the year.
‘‘(ii) CLARIFICATION.—Nothing in clause (i) shall
be construed as prohibiting a PDP sponsor from
removing such a selected drug from a formulary if
such removal would be permitted under section
423.120(b)(5)(iv) of title 42, Code of Federal Regula-
tions (or any successor regulation).’’.
(F) INFORMATION FROM PRESCRIPTION DRUG PLANS AND
MA–PD PLANS REQUIRED.—
(i) PRESCRIPTION DRUG PLANS.—Section 1860D–
12(b) of the Social Security Act (42 U.S.C. 1395w–
H. R. 5376—36
112(b)) is amended by adding at the end the following
new paragraph:
‘‘(8) PROVISION OF INFORMATION RELATED TO MAXIMUM FAIR
PRICES.—Each contract entered into with a PDP sponsor under
this part with respect to a prescription drug plan offered by
such sponsor shall require the sponsor to provide information
to the Secretary as requested by the Secretary for purposes
of carrying out section 1194.’’.
(ii) MA–PD PLANS.—Section 1857(f)(3) of the Social
Security Act (42 U.S.C. 1395w–27(f)(3)) is amended
by adding at the end the following new subparagraph:
‘‘(E) PROVISION OF INFORMATION RELATED TO MAXIMUM
FAIR PRICES.—Section 1860D–12(b)(8).’’.
(G) CONDITIONS FOR COVERAGE.—
(i) MEDICARE PART D.—Section 1860D–43(c) of the
Social Security Act (42 U.S.C. 1395w–153(c)) is
amended—
(I) by redesignating paragraphs (1) and (2)
as subparagraphs (A) and (B), respectively;
(II) by striking ‘‘AGREEMENTS.—Subsection’’
and inserting the following: ‘‘AGREEMENTS.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), subsection’’;
and
(III) by adding at the end the following new
paragraph:
‘‘(2) EXCEPTION.—Paragraph (1)(A) shall not apply to a
covered part D drug of a manufacturer for any period described
in section 5000D(c)(1) of the Internal Revenue Code of 1986
with respect to the manufacturer.’’.
(ii) MEDICAID AND MEDICARE PART B.—Section
1927(a)(3) of the Social Security Act (42 U.S.C. 1396r–
8(a)(3)) is amended by adding at the end the following
new sentence: ‘‘The preceding sentence shall not apply
to a single source drug or innovator multiple source
drug of a manufacturer for any period described in
section 5000D(c)(1) of the Internal Revenue Code of
1986 with respect to the manufacturer.’’.
(H) DISCLOSURE OF INFORMATION UNDER MEDICARE
PART D.—
(i) CONTRACT REQUIREMENTS.—Section 1860D–
12(b)(3)(D)(i) of the Social Security Act (42 U.S.C.
1395w–112(b)(3)(D)(i)) is amended by inserting ‘‘, or
carrying out part E of title XI’’ after ‘‘appropriate)’’.
(ii) SUBSIDIES.—Section 1860D–15(f)(2)(A)(i) of the
Social Security Act (42 U.S.C. 1395w–115(f)(2)(A)(i))
is amended by inserting ‘‘or part E of title XI’’ after
‘‘this section’’.
(2) DRUG PRICE NEGOTIATION PROGRAM PRICES INCLUDED
IN BEST PRICE.—Section 1927(c)(1)(C) of the Social Security
Act (42 U.S.C. 1396r–8(c)(1)(C)) is amended—
(A) in clause (i)(VI), by striking ‘‘any prices charged’’
and inserting ‘‘subject to clause (ii)(V), any prices charged’’;
and
(B) in clause (ii)—
(i) in subclause (III), by striking ‘‘; and’’ at the
end;
H. R. 5376—37
(ii) in subclause (IV), by striking the period at
the end and inserting ‘‘; and’’; and
(iii) by adding at the end the following new sub-
clause:
‘‘(V) in the case of a rebate period and a cov-
ered outpatient drug that is a selected drug (as
referred to in section 1192(c)) during such rebate
period, shall be inclusive of the maximum fair
price (as defined in section 1191(c)(3)) for such
drug with respect to such period.’’.
(3) MAXIMUM FAIR PRICES EXCLUDED FROM AVERAGE MANU-
FACTURER PRICE.—Section 1927(k)(1)(B)(i) of the Social Security
Act (42 U.S.C. 1396r–8(k)(1)(B)(i)) is amended—
(A) in subclause (IV) by striking ‘‘; and’’ at the end;
(B) in subclause (V) by striking the period at the end
and inserting ‘‘; and’’; and
(C) by adding at the end the following new subclause:
‘‘(VI) any reduction in price paid during the
rebate period to the manufacturer for a drug by
reason of application of part E of title XI.’’.
(c) IMPLEMENTATION FOR 2026 THROUGH 2028.—The Secretary
of Health and Human Services shall implement this section,
including the amendments made by this section, for 2026, 2027,
and 2028 by program instruction or other forms of program guid-
ance.
SEC. 11002. SPECIAL RULE TO DELAY SELECTION AND NEGOTIATION
OF BIOLOGICS FOR BIOSIMILAR MARKET ENTRY.
(a) IN GENERAL.—Part E of title XI of the Social Security
Act, as added by section 11001, is amended—
(1) in section 1192—
(A) in subsection (a), in the flush matter following
paragraph (4), by inserting ‘‘and subsection (b)(3)’’ after
‘‘the previous sentence’’;
(B) in subsection (b)—
(i) in paragraph (1), by adding at the end the
following new subparagraph:
‘‘(C) In the case of a biological product for which the
inclusion of the biological product as a selected drug on
a list published under subsection (a) has been delayed
under subsection (f)(2), remove such biological product from
the rankings under subparagraph (A) before making the
selections under subparagraph (B).’’; and
(ii) by adding at the end the following new para-
graph:
‘‘(3) INCLUSION OF DELAYED BIOLOGICAL PRODUCTS.—Pursu-
ant to subparagraphs (B)(ii)(I) and (C)(i) of subsection (f)(2),
the Secretary shall select and include on the list published
under subsection (a) the biological products described in such
subparagraphs. Such biological products shall count towards
the required number of drugs to be selected under subsection
(a)(1).’’; and
(C) by adding at the end the following new subsection:
‘‘(f) SPECIAL RULE TO DELAY SELECTION AND NEGOTIATION OF
BIOLOGICS FOR BIOSIMILAR MARKET ENTRY.—
‘‘(1) APPLICATION.—
H. R. 5376—38
‘‘(A) IN GENERAL.—Subject to subparagraph (B), in the
case of a biological product that would (but for this sub-
section) be an extended-monopoly drug (as defined in sec-
tion 1194(c)(4)) included as a selected drug on the list
published under subsection (a) with respect to an initial
price applicability year, the rules described in paragraph
(2) shall apply if the Secretary determines that there is
a high likelihood (as described in paragraph (3)) that a
biosimilar biological product (for which such biological
product will be the reference product) will be licensed and
marketed under section 351(k) of the Public Health Service
Act before the date that is 2 years after the selected drug
publication date with respect to such initial price applica-
bility year.
‘‘(B) REQUEST REQUIRED.—
‘‘(i) IN GENERAL.—The Secretary shall not provide
for a delay under—
‘‘(I) paragraph (2)(A) unless a request is made
for such a delay by a manufacturer of a biosimilar
biological product prior to the selected drug
publication date for the list published under sub-
section (a) with respect to the initial price applica-
bility year for which the biological product may
have been included as a selected drug on such
list but for subparagraph (2)(A); or
‘‘(II) paragraph (2)(B)(iii) unless a request is
made for such a delay by such a manufacturer
prior to the selected drug publication date for the
list published under subsection (a) with respect
to the initial price applicability year that is 1
year after the initial price applicability year for
which the biological product described in sub-
section (a) would have been included as a selected
drug on such list but for paragraph (2)(A).
‘‘(ii) INFORMATION AND DOCUMENTS.—
‘‘(I) IN GENERAL.—A request made under
clause (i) shall be submitted to the Secretary by
such manufacturer at a time and in a form and
manner specified by the Secretary, and contain—
‘‘(aa) information and documents nec-
essary for the Secretary to make determina-
tions under this subsection, as specified by
the Secretary and including, to the extent
available, items described in subclause (III);
and
‘‘(bb) all agreements related to the bio-
similar biological product filed with the Fed-
eral Trade Commission or the Assistant
Attorney General pursuant to subsections (a)
and (c) of section 1112 of the Medicare
Prescription Drug, Improvement, and Mod-
ernization Act of 2003.
‘‘(II) ADDITIONAL INFORMATION AND DOCU-
MENTS.—After the Secretary has reviewed the
request and materials submitted under subclause
(I), the manufacturer shall submit any additional
H. R. 5376—39
information and documents requested by the Sec-
retary necessary to make determinations under
this subsection.
‘‘(III) ITEMS DESCRIBED.—The items described
in this clause are the following:
‘‘(aa) The manufacturing schedule for such
biosimilar biological product submitted to the
Food and Drug Administration during its
review of the application under such section
351(k).
‘‘(bb) Disclosures (in filings by the manu-
facturer of such biosimilar biological product
with the Securities and Exchange Commission
required under section 12(b), 12(g), 13(a), or
15(d) of the Securities Exchange Act of 1934
about capital investment, revenue expecta-
tions, and actions taken by the manufacturer
that are typical of the normal course of busi-
ness in the year (or the 2 years, as applicable)
before marketing of a biosimilar biological
product) that pertain to the marketing of such
biosimilar biological product, or comparable
documentation that is distributed to the share-
holders of privately held companies.
‘‘(C) AGGREGATION RULE.—
‘‘(i) IN GENERAL.—All persons treated as a single
employer under subsection (a) or (b) of section 52 of
the Internal Revenue Code of 1986, or in a partnership,
shall be treated as one manufacturer for purposes of
paragraph (2)(D)(iv).
‘‘(ii) PARTNERSHIP DEFINED.—In clause (i), the term
‘partnership’ means a syndicate, group, pool, joint ven-
ture, or other organization through or by means of
which any business, financial operation, or venture
is carried on by the manufacturer of the biological
product and the manufacturer of the biosimilar
biological product.
‘‘(2) RULES DESCRIBED.—The rules described in this para-
graph are the following:
‘‘(A) DELAYED SELECTION AND NEGOTIATION FOR 1
YEAR.—If a determination of high likelihood is made under
paragraph (3), the Secretary shall delay the inclusion of
the biological product as a selected drug on the list pub-
lished under subsection (a) until such list is published
with respect to the initial price applicability year that
is 1 year after the initial price applicability year for which
the biological product would have been included as a
selected drug on such list.
‘‘(B) IF NOT LICENSED AND MARKETED DURING THE INI-
TIAL DELAY.—
‘‘(i) IN GENERAL.—If, during the time period
between the selected drug publication date on which
the biological product would have been included on
the list as a selected drug pursuant to subsection (a)
but for subparagraph (A) and the selected drug publica-
tion date with respect to the initial price applicability
year that is 1 year after the initial price applicability
H. R. 5376—40
year for which such biological product would have been
included as a selected drug on such list, the Secretary
determines that the biosimilar biological product for
which the manufacturer submitted the request under
paragraph (1)(B)(i)(II) (and for which the Secretary
previously made a high likelihood determination under
paragraph (3)) has not been licensed and marketed
under section 351(k) of the Public Health Service Act,
the Secretary shall, at the request of such manufac-
turer—
‘‘(I) reevaluate whether there is a high likeli-
hood (as described in paragraph (3)) that such
biosimilar biological product will be licensed and
marketed under such section 351(k) before the date
that is 2 years after the selected drug publication
date for which such biological product would have
been included as a selected drug on such list pub-
lished but for subparagraph (A); and
‘‘(II) evaluate whether, on the basis of clear
and convincing evidence, the manufacturer of such
biosimilar biological product has made a significant
amount of progress (as determined by the Sec-
retary) towards both such licensure and the mar-
keting of such biosimilar biological product (based
on information from items described in subclauses
(I)(bb) and (II) of paragraph (1)(B)(ii)) since the
receipt by the Secretary of the request made by
such manufacturer under paragraph (1)(B)(i)(I).
‘‘(ii) SELECTION AND NEGOTIATION.—If the Sec-
retary determines that there is not a high likelihood
that such biosimilar biological product will be licensed
and marketed as described in clause (i)(I) or there
has not been a significant amount of progress as
described in clause (i)(II)—
‘‘(I) the Secretary shall include the biological
product as a selected drug on the list published
under subsection (a) with respect to the initial
price applicability year that is 1 year after the
initial price applicability year for which such
biological product would have been included as
a selected drug on such list but for subparagraph
(A); and
‘‘(II) the manufacturer of such biological
product shall pay a rebate under paragraph (4)
with respect to the year for which such manufac-
turer would have provided access to a maximum
fair price for such biological product but for
subparagraph (A).
‘‘(iii) SECOND 1-YEAR DELAY.—If the Secretary
determines that there is a high likelihood that such
biosimilar biological product will be licensed and mar-
keted (as described in clause (i)(I)) and a significant
amount of progress has been made by the manufacturer
of such biosimilar biological product towards such licen-
sure and marketing (as described in clause (i)(II)),
the Secretary shall delay the inclusion of the biological
product as a selected drug on the list published under
H. R. 5376—41
subsection (a) until the selected drug publication date
of such list with respect to the initial price applicability
year that is 2 years after the initial price applicability
year for which such biological product would have been
included as a selected drug on such list but for this
subsection.
‘‘(C) IF NOT LICENSED AND MARKETED DURING THE YEAR
TWO DELAY.—If, during the time period between the
selected drug publication date of the list for which the
biological product would have been included as a selected
drug but for subparagraph (B)(iii) and the selected drug
publication date with respect to the initial price applica-
bility year that is 2 years after the initial price applicability
year for which such biological product would have been
included as a selected drug on such list but for this sub-
section, the Secretary determines that such biosimilar
biological product has not been licensed and marketed—
‘‘(i) the Secretary shall include such biological
product as a selected drug on such list with respect
to the initial price applicability year that is 2 years
after the initial price applicability year for which such
biological product would have been included as a
selected drug on such list; and
‘‘(ii) the manufacturer of such biological product
shall pay a rebate under paragraph (4) with respect
to the years for which such manufacturer would have
provided access to a maximum fair price for such
biological product but for this subsection.
‘‘(D) LIMITATIONS ON DELAYS.—
‘‘(i) LIMITED TO 2 YEARS.—In no case shall the
Secretary delay the inclusion of a biological product
on the list published under subsection (a) for more
than 2 years.
‘‘(ii) EXCLUSION OF BIOLOGICAL PRODUCTS THAT
TRANSITIONED TO A LONG-MONOPOLY DRUG DURING THE
DELAY.—In the case of a biological product for which
the inclusion on the list published pursuant to sub-
section (a) was delayed by 1 year under subparagraph
(A) and for which there would have been a change
in status to a long-monopoly drug (as defined in section
1194(c)(5)) if such biological product had been a
selected drug, in no case may the Secretary provide
for a second 1-year delay under subparagraph (B)(iii).
‘‘(iii) EXCLUSION OF BIOLOGICAL PRODUCTS IF MORE
THAN 1 YEAR SINCE LICENSURE.—In no case shall the
Secretary delay the inclusion of a biological product
on the list published under subsection (a) if more than
1 year has elapsed since the biosimilar biological
product has been licensed under section 351(k) of the
Public Health Service Act and marketing has not com-
menced for such biosimilar biological product.
‘‘(iv) CERTAIN MANUFACTURERS OF BIOSIMILAR
BIOLOGICAL PRODUCTS EXCLUDED.—In no case shall the
Secretary delay the inclusion of a biological product
H. R. 5376—42
as a selected drug on the list published under sub-
section (a) if Secretary determined that the manufac-
turer of the biosimilar biological product described in
paragraph (1)(A)—
‘‘(I) is the same as the manufacturer of the
reference product described in such paragraph or
is treated as being the same pursuant to paragraph
(1)(C); or
‘‘(II) has, based on information from items
described in paragraph (1)(B)(ii)(I)(bb), entered
into any agreement described in such paragraph
with the manufacturer of the reference product
described in paragraph (1)(A) that—
‘‘(aa) requires or incentivizes the manufac-
turer of the biosimilar biological product to
submit a request described in paragraph
(1)(B); or
‘‘(bb) restricts the quantity (either directly
or indirectly) of the biosimilar biological
product that may be sold in the United States
over a specified period of time.
‘‘(3) HIGH LIKELIHOOD.—For purposes of this subsection,
there is a high likelihood described in paragraph (1) or para-
graph (2), as applicable, if the Secretary finds that—
‘‘(A) an application for licensure under section 351(k)
of the Public Health Service Act for the biosimilar biological
product has been accepted for review or approved by the
Food and Drug Administration; and
‘‘(B) information from items described in sub clauses
(I)(bb) and (III) of paragraph (1)(B)(ii) submitted to the
Secretary by the manufacturer requesting a delay under
such paragraph provides clear and convincing evidence that
such biosimilar biological product will, within the time
period specified under paragraph (1)(A) or (2)(B)(i)(I), be
marketed.
‘‘(4) REBATE.—
‘‘(A) IN GENERAL.—For purposes of subparagraphs
(B)(ii)(II) and (C)(ii) of paragraph (2), in the case of a
biological product for which the inclusion on the list under
subsection (a) was delayed under this subsection and for
which the Secretary has negotiated and entered into an
agreement under section 1193 with respect to such
biological product, the manufacturer shall be required to
pay a rebate to the Secretary at such time and in such
manner as determined by the Secretary.
‘‘(B) AMOUNT.—Subject to subparagraph (C), the
amount of the rebate under subparagraph (A) with respect
to a biological product shall be equal to the estimated
amount—
‘‘(i) in the case of a biological product that is a
covered part D drug (as defined in section 1860D–
2(e)), that is the sum of the products of—
‘‘(I) 75 percent of the amount by which—
‘‘(aa) the average manufacturer price, as
reported by the manufacturer of such covered
part D drug under section 1927 (or, if not
reported by such manufacturer under section
H. R. 5376—43
1927, as reported by such manufacturer to
the Secretary pursuant to the agreement
under section 1193(a)) for such biological
product, with respect to each of the calendar
quarters of the price applicability period that
would have applied but for this subsection;
exceeds
‘‘(bb) in the initial price applicability year
that would have applied but for a delay
under—
‘‘(AA) paragraph (2)(A), the maximum
fair price negotiated under section 1194
for such biological product under such
agreement; or
‘‘(BB) paragraph (2)(B)(iii), such max-
imum fair price, increased as described
in section 1195(b)(1)(A); and
‘‘(II) the number of units dispensed under part
D of title XVIII for such covered part D drug
during each such calendar quarter of such price
applicability period; and
‘‘(ii) in the case of a biological product for which
payment may be made under part B of title XVIII,
that is the sum of the products of—
‘‘(I) 80 percent of the amount by which—
‘‘(aa) the payment amount for such
biological product under section 1847A(b), with
respect to each of the calendar quarters of
the price applicability period that would have
applied but for this subsection; exceeds
‘‘(bb) in the initial price applicability year
that would have applied but for a delay
under—
‘‘(AA) paragraph (2)(A), the maximum
fair price negotiated under section 1194
for such biological product under such
agreement; or
‘‘(BB) paragraph (2)(B)(iii), such max-
imum fair price, increased as described
in section 1195(b)(1)(A); and
‘‘(II) the number of units (excluding units that
are packaged into the payment amount for an
item or service and are not separately payable
under such part B) of the billing and payment
code of such biological product administered or
furnished under such part B during each such
calendar quarter of such price applicability period.
‘‘(C) SPECIAL RULE FOR DELAYED BIOLOGICAL PRODUCTS
THAT ARE LONG-MONOPOLY DRUGS.—
‘‘(i) IN GENERAL.—In the case of a biological product
with respect to which a rebate is required to be paid
under this paragraph, if such biological product quali-
fies as a long-monopoly drug (as defined in section
1194(c)(5)) at the time of its inclusion on the list pub-
lished under subsection (a), in determining the amount
of the rebate for such biological product under subpara-
graph (B), the amount described in clause (ii) shall
H. R. 5376—44
be substituted for the maximum fair price described
in clause (i)(I) or (ii)(I) of such subparagraph (B), as
applicable.
‘‘(ii) AMOUNT DESCRIBED.—The amount described
in this clause is an amount equal to 65 percent of
the average non-Federal average manufacturer price
for the biological product for 2021 (or, in the case
that there is not an average non-Federal average
manufacturer price available for such biological
product for 2021, for the first full year following the
market entry for such biological product), increased
by the percentage increase in the consumer price index
for all urban consumers (all items; United States city
average) from September 2021 (or December of such
first full year following the market entry), as
applicable, to September of the year prior to the
selected drug publication date with respect to the ini-
tial price applicability year that would have applied
but for this subsection.
‘‘(D) REBATE DEPOSITS.—Amounts paid as rebates
under this paragraph shall be deposited into—
‘‘(i) in the case payment is made for such biological
product under part B of title XVIII, the Federal Supple-
mentary Medical Insurance Trust Fund established
under section 1841; and
‘‘(ii) in the case such biological product is a covered
part D drug (as defined in section 1860D–2(e)), the
Medicare Prescription Drug Account under section
1860D–16 in such Trust Fund.
‘‘(5) DEFINITIONS OF BIOSIMILAR BIOLOGICAL PRODUCT.—In
this subsection, the term ‘biosimilar biological product’ has
the meaning given such term in section 1847A(c)(6).’’;
(2) in section 1193(a)(4)—
(A) in the matter preceding subparagraph (A), by
inserting ‘‘, and for section 1192(f),’’ after ‘‘section 1194(f))’’;
(B) in subparagraph (A), by striking ‘‘and’’ at the end;
(C) by adding at the end the following new subpara-
graph:
‘‘(C) information that the Secretary requires to carry
out section 1192(f), including rebates under paragraph (4)
of such section; and’’;
(3) in section 1196(a)(7), by striking ‘‘section 1192(d)(2)(B)’’
and inserting ‘‘subsections (d)(2)(B) and (f)(1)(C) of section
1192’’;
(4) in section 1197—
(A) by redesignating subsections (b), (c), and (d) as
subsections (c), (d), and (e), respectively; and
(B) by inserting after subsection (a) the following new
subsection:
‘‘(b) VIOLATIONS RELATING TO PROVIDING REBATES.—Any manu-
facturer that fails to comply with the rebate requirements under
section 1192(f)(4) shall be subject to a civil monetary penalty equal
to 10 times the amount of the rebate the manufacturer failed
to pay under such section.’’; and
(5) in section 1198(b)(2), by inserting ‘‘the application of
section 1192(f),’’ after ‘‘section 1192(e)’’.
H. R. 5376—45
(b) CONFORMING AMENDMENTS FOR DISCLOSURE OF CERTAIN
INFORMATION.—Section 1927(b)(3)(D)(i) of the Social Security Act
(42 U.S.C. 1396r–8(b)(3)(D)(i)) is amended by striking ‘‘or to carry
out section 1847B’’ and inserting ‘‘or to carry out section 1847B
or section 1192(f), including rebates under paragraph (4) of such
section’’.
(c) IMPLEMENTATION FOR 2026 THROUGH 2028.—The Secretary
of Health and Human Services shall implement this section,
including the amendments made by this section, for 2026, 2027,
and 2028 by program instruction or other forms of program guid-
ance.
SEC. 11003. EXCISE TAX IMPOSED ON DRUG MANUFACTURERS DURING
NONCOMPLIANCE PERIODS.
(a) IN GENERAL.—Subtitle D of the Internal Revenue Code
of 1986 is amended by adding at the end the following new chapter:
‘‘CHAPTER 50A—DESIGNATED DRUGS
‘‘Sec. 5000D. Designated drugs during noncompliance periods.
‘‘SEC. 5000D. DESIGNATED DRUGS DURING NONCOMPLIANCE PERIODS.
‘‘(a) IN GENERAL.—There is hereby imposed on the sale by
the manufacturer, producer, or importer of any designated drug
during a day described in subsection (b) a tax in an amount such
that the applicable percentage is equal to the ratio of—
‘‘(1) such tax, divided by
‘‘(2) the sum of such tax and the price for which so sold.
‘‘(b) NONCOMPLIANCE PERIODS.—A day is described in this sub-
section with respect to a designated drug if it is a day during
one of the following periods:
‘‘(1) The period beginning on the March 1st (or, in the
case of initial price applicability year 2026, the October 2nd)
immediately following the date on which such drug is included
on the list published under section 1192(a) of the Social Security
Act and ending on the earlier of—
‘‘(A) the first date on which the manufacturer of such
designated drug has in place an agreement described in
section 1193(a) of such Act with respect to such drug,
or
‘‘(B) the date that the Secretary of Health and Human
Services has made a determination described in section
1192(c)(1) of such Act with respect to such designated drug.
‘‘(2) The period beginning on the November 2nd imme-
diately following the March 1st described in paragraph (1)
(or, in the case of initial price applicability year 2026, the
August 2nd immediately following the October 2nd described
in such paragraph) and ending on the earlier of—
‘‘(A) the first date on which the manufacturer of such
designated drug and the Secretary of Health and Human
Services have agreed to a maximum fair price under an
agreement described in section 1193(a) of the Social Secu-
rity Act, or
‘‘(B) the date that the Secretary of Health and Human
Services has made a determination described in section
1192(c)(1) of such Act with respect to such designated drug.
‘‘(3) In the case of any designated drug which is a selected
drug (as defined in section 1192(c) of the Social Security Act)
H. R. 5376—46
that the Secretary of Health and Human Services has selected
for renegotiation under section 1194(f) of such Act, the period
beginning on the November 2nd of the year that begins 2
years prior to the first initial price applicability year of the
price applicability period for which the maximum fair price
established pursuant to such renegotiation applies and ending
on the earlier of—
‘‘(A) the first date on which the manufacturer of such
designated drug has agreed to a renegotiated maximum
fair price under such agreement, or
‘‘(B) the date that the Secretary of Health and Human
Services has made a determination described in section
1192(c)(1) of such Act with respect to such designated drug.
‘‘(4) With respect to information that is required to be
submitted to the Secretary of Health and Human Services
under an agreement described in section 1193(a) of the Social
Security Act, the period beginning on the date on which such
Secretary certifies that such information is overdue and ending
on the date that such information is so submitted.
‘‘(c) SUSPENSION OF TAX.—
‘‘(1) IN GENERAL.—A day shall not be taken into account
as a day during a period described in subsection (b) if such
day is also a day during the period—
‘‘(A) beginning on the first date on which—
‘‘(i) the notice of terminations of all applicable
agreements of the manufacturer have been received
by the Secretary of Health and Human Services, and
‘‘(ii) none of the drugs of the manufacturer of the
designated drug are covered by an agreement under
section 1860D-14A or 1860D-14C of the Social Security
Act, and
‘‘(B) ending on the last day of February following the
earlier of—
‘‘(i) the first day after the date described in
subparagraph (A) on which the manufacturer enters
into any subsequent applicable agreement, or
‘‘(ii) the first date any drug of the manufacturer
of the designated drug is covered by an agreement
under section 1860D-14A or 1860D-14C of the Social
Security Act.
‘‘(2) APPLICABLE AGREEMENT.—For purposes of this sub-
section, the term ‘applicable agreement’ means the following:
‘‘(A) An agreement under—
‘‘(i) the Medicare coverage gap discount program
under section 1860D-14A of the Social Security Act,
or
‘‘(ii) the manufacturer discount program under sec-
tion 1860D-14C of such Act.
‘‘(B) A rebate agreement described in section 1927(b)
of such Act.
‘‘(d) APPLICABLE PERCENTAGE.—For purposes of this section,
the term ‘applicable percentage’ means—
‘‘(1) in the case of sales of a designated drug during the
first 90 days described in subsection (b) with respect to such
drug, 65 percent,
H. R. 5376—47
‘‘(2) in the case of sales of such drug during the 91st
day through the 180th day described in subsection (b) with
respect to such drug, 75 percent,
‘‘(3) in the case of sales of such drug during the 181st
day through the 270th day described in subsection (b) with
respect to such drug, 85 percent, and
‘‘(4) in the case of sales of such drug during any subsequent
day, 95 percent.
‘‘(e) DEFINITIONS.—For purposes of this section—
‘‘(1) DESIGNATED DRUG.—The term ‘designated drug’ means
any negotiation-eligible drug (as defined in section 1192(d) of
the Social Security Act) included on the list published under
section 1192(a) of such Act which is manufactured or produced
in the United States or entered into the United States for
consumption, use, or warehousing.
‘‘(2) UNITED STATES.—The term ‘United States’ has the
meaning given such term by section 4612(a)(4).
‘‘(3) OTHER TERMS.—The terms ‘initial price applicability
year’, ‘price applicability period’, and ‘maximum fair price’ have
the meaning given such terms in section 1191 of the Social
Security Act.
‘‘(f) SPECIAL RULES.—
‘‘(1) COORDINATION WITH RULES FOR POSSESSIONS OF THE
UNITED STATES.—Rules similar to the rules of paragraphs (2)
and (4) of section 4132(c) shall apply for purposes of this section.
‘‘(2) ANTI-ABUSE RULE.—In the case of a sale which was
timed for the purpose of avoiding the tax imposed by this
section, the Secretary may treat such sale as occurring during
a day described in subsection (b).
‘‘(g) EXPORTS.—Rules similar to the rules of section 4662(e)
(other than section 4662(e)(2)(A)(ii)(II)) shall apply for purposes
of this chapter.
‘‘(h) REGULATIONS.—The Secretary shall prescribe such regula-
tions and other guidance as may be necessary to carry out this
section.’’.
(b) NO DEDUCTION FOR EXCISE TAX PAYMENTS.—Section
275(a)(6) of the Internal Revenue Code of 1986 is amended by
inserting ‘‘50A,’’ after ‘‘46,’’.
(c) CLERICAL AMENDMENT.—The table of chapters for subtitle
D of the Internal Revenue Code of 1986 is amended by adding
at the end the following new item:
‘‘CHAPTER 50A—DESIGNATED DRUGS’’.
(d) EFFECTIVE DATE.—The amendments made by this section
shall apply to sales after the date of the enactment of this Act.
SEC. 11004. FUNDING.
In addition to amounts otherwise available, there is appro-
priated to the Centers for Medicare & Medicaid Services, out of
any money in the Treasury not otherwise appropriated,
$3,000,000,000 for fiscal year 2022, to remain available until
expended, to carry out the provisions of, including the amendments
made by, this part.
H. R. 5376—48
PART 2—PRESCRIPTION DRUG INFLATION
REBATES
SEC. 11101. MEDICARE PART B REBATE BY MANUFACTURERS.
(a) IN GENERAL.—Section 1847A of the Social Security Act
(42 U.S.C. 1395w–3a) is amended by redesignating subsection (i)
as subsection (j) and by inserting after subsection (h) the following
subsection:
‘‘(i) REBATE BY MANUFACTURERS FOR SINGLE SOURCE DRUGS
AND BIOLOGICALS WITH PRICES INCREASING FASTER THAN INFLA-
TION.—
‘‘(1) REQUIREMENTS.—
‘‘(A) SECRETARIAL PROVISION OF INFORMATION.—Not
later than 6 months after the end of each calendar quarter
beginning on or after January 1, 2023, the Secretary shall,
for each part B rebatable drug, report to each manufacturer
of such part B rebatable drug the following for such cal-
endar quarter:
‘‘(i) Information on the total number of units of
the billing and payment code described in subpara-
graph (A)(i) of paragraph (3) with respect to such drug
and calendar quarter.
‘‘(ii) Information on the amount (if any) of the
excess average sales price increase described in
subparagraph (A)(ii) of such paragraph for such drug
and calendar quarter.
‘‘(iii) The rebate amount specified under such para-
graph for such part B rebatable drug and calendar
quarter.
‘‘(B) MANUFACTURER REQUIREMENT.—For each calendar
quarter beginning on or after January 1, 2023, the manu-
facturer of a part B rebatable drug shall, for such drug,
not later than 30 days after the date of receipt from the
Secretary of the information described in subparagraph
(A) for such calendar quarter, provide to the Secretary
a rebate that is equal to the amount specified in paragraph
(3) for such drug for such calendar quarter.
‘‘(C) TRANSITION RULE FOR REPORTING.—The Secretary
may, for each part B rebatable drug, delay the timeframe
for reporting the information described in subparagraph
(A) for calendar quarters beginning in 2023 and 2024 until
not later than September 30, 2025.
‘‘(2) PART B REBATABLE DRUG DEFINED.—
‘‘(A) IN GENERAL.—In this subsection, the term ‘part
B rebatable drug’ means a single source drug or biological
(as defined in subparagraph (D) of subsection (c)(6)),
including a biosimilar biological product (as defined in
subparagraph (H) of such subsection) but excluding a quali-
fying biosimilar biological product (as defined in subsection
(b)(8)(B)(iii)), for which payment is made under this part,
except such term shall not include such a drug or
biological—
‘‘(i) if, as determined by the Secretary, the average
total allowed charges for such drug or biological under
this part for a year per individual that uses such
H. R. 5376—49
a drug or biological are less than, subject to subpara-
graph (B), $100; or
‘‘(ii) that is a vaccine described in subparagraph
(A) or (B) of section 1861(s)(10).
‘‘(B) INCREASE.—The dollar amount applied under
subparagraph (A)(i)—
‘‘(i) for 2024, shall be the dollar amount specified
under such subparagraph for 2023, increased by the
percentage increase in the consumer price index for
all urban consumers (United States city average) for
the 12-month period ending with June of the previous
year; and
‘‘(ii) for a subsequent year, shall be the dollar
amount specified in this clause (or clause (i)) for the
previous year (without application of subparagraph
(C)), increased by the percentage increase in the con-
sumer price index for all urban consumers (United
States city average) for the 12-month period ending
with June of the previous year.
‘‘(C) ROUNDING.—Any dollar amount determined under
subparagraph (B) that is not a multiple of $10 shall be
rounded to the nearest multiple of $10.
‘‘(3) REBATE AMOUNT.—
‘‘(A) IN GENERAL.—For purposes of paragraph (1), the
amount specified in this paragraph for a part B rebatable
drug assigned to a billing and payment code for a calendar
quarter is, subject to subparagraphs (B) and (G) and para-
graph (4), the estimated amount equal to the product of—
‘‘(i) the total number of units determined under
subparagraph (B) for the billing and payment code
of such drug; and
‘‘(ii) the amount (if any) by which—
‘‘(I) the amount equal to—
‘‘(aa) in the case of a part B rebatable
drug described in paragraph (1)(B) of sub-
section (b), 106 percent of the amount deter-
mined under paragraph (4) of such section
for such drug during the calendar quarter;
or
‘‘(bb) in the case of a part B rebatable
drug described in paragraph (1)(C) of such
subsection, the payment amount under such
paragraph for such drug during the calendar
quarter; exceeds
‘‘(II) the inflation-adjusted payment amount
determined under subparagraph (C) for such part
B rebatable drug during the calendar quarter.
‘‘(B) TOTAL NUMBER OF UNITS.—For purposes of
subparagraph (A)(i), the total number of units for the
billing and payment code with respect to a part B rebatable
drug furnished during a calendar quarter described in
subparagraph (A) is equal to—
‘‘(i) the number of units for the billing and payment
code of such drug furnished during such calendar
quarter, minus
H. R. 5376—50
‘‘(ii) the number of units for such billing and pay-
ment code of such drug furnished during such calendar
quarter—
‘‘(I) with respect to which the manufacturer
provides a discount under the program under sec-
tion 340B of the Public Health Service Act or a
rebate under section 1927; or
‘‘(II) that are packaged into the payment
amount for an item or service and are not sepa-
rately payable.
‘‘(C) DETERMINATION OF INFLATION-ADJUSTED PAYMENT
AMOUNT.—The inflation-adjusted payment amount deter-
mined under this subparagraph for a part B rebatable
drug for a calendar quarter is—
‘‘(i) the payment amount for the billing and pay-
ment code for such drug in the payment amount bench-
mark quarter (as defined in subparagraph (D));
increased by
‘‘(ii) the percentage by which the rebate period
CPI–U (as defined in subparagraph (F)) for the cal-
endar quarter exceeds the benchmark period CPI–U
(as defined in subparagraph (E)).
‘‘(D) PAYMENT AMOUNT BENCHMARK QUARTER.—The
term ‘payment amount benchmark quarter’ means the cal-
endar quarter beginning July 1, 2021.
‘‘(E) BENCHMARK PERIOD CPI–U.—The term ‘benchmark
period CPI–U’ means the consumer price index for all
urban consumers (United States city average) for January
2021.
‘‘(F) REBATE PERIOD CPI–U.—The term ‘rebate period
CPI–U’ means, with respect to a calendar quarter described
in subparagraph (C), the greater of the benchmark period
CPI–U and the consumer price index for all urban con-
sumers (United States city average) for the first month
of the calendar quarter that is two calendar quarters prior
to such described calendar quarter.
‘‘(G) REDUCTION OR WAIVER FOR SHORTAGES AND
SEVERE SUPPLY CHAIN DISRUPTIONS.—The Secretary shall
reduce or waive the amount under subparagraph (A) with
respect to a part B rebatable drug and a calendar quarter—
‘‘(i) in the case of a part B rebatable drug that
is described as currently in shortage on the shortage
list in effect under section 506E of the Federal Food,
Drug, and Cosmetic Act at any point during the cal-
endar quarter; or
‘‘(ii) in the case of a biosimilar biological product,
when the Secretary determines there is a severe supply
chain disruption during the calendar quarter, such as
that caused by a natural disaster or other unique or
unexpected event.
‘‘(4) SPECIAL TREATMENT OF CERTAIN DRUGS AND EXEMP-
TION.—
‘‘(A) SUBSEQUENTLY APPROVED DRUGS.—In the case of
a part B rebatable drug first approved or licensed by the
Food and Drug Administration after December 1, 2020,
clause (i) of paragraph (3)(C) shall be applied as if the
term ‘payment amount benchmark quarter’ were defined
H. R. 5376—51
under paragraph (3)(D) as the third full calendar quarter
after the day on which the drug was first marketed and
clause (ii) of paragraph (3)(C) shall be applied as if the
term ‘benchmark period CPI–U’ were defined under para-
graph (3)(E) as if the reference to ‘January 2021’ under
such paragraph were a reference to ‘the first month of
the first full calendar quarter after the day on which the
drug was first marketed’.
‘‘(B) TIMELINE FOR PROVISION OF REBATES FOR SUBSE-
QUENTLY APPROVED DRUGS.—In the case of a part B
rebatable drug first approved or licensed by the Food and
Drug Administration after December 1, 2020, paragraph
(1)(B) shall be applied as if the reference to ‘January 1,
2023’ under such paragraph were a reference to ‘the later
of the 6th full calendar quarter after the day on which
the drug was first marketed or January 1, 2023’.
‘‘(C) SELECTED DRUGS.—In the case of a part B
rebatable drug that is a selected drug (as defined in section
1192(c)) with respect to a price applicability period (as
defined in section 1191(b)(2)), in the case such drug is
no longer considered to be a selected drug under section
1192(c), for each applicable period (as defined under sub-
section (g)(7)) beginning after the price applicability period
with respect to such drug, clause (i) of paragraph (3)(C)
shall be applied as if the term ‘payment amount benchmark
quarter’ were defined under paragraph (3)(D) as the cal-
endar quarter beginning January 1 of the last year during
such price applicability period with respect to such selected
drug and clause (ii) of paragraph (3)(C) shall be applied
as if the term ‘benchmark period CPI–U’ were defined
under paragraph (3)(E) as if the reference to ‘January
2021’ under such paragraph were a reference to ‘the July
of the year preceding such last year’.
‘‘(5) APPLICATION TO BENEFICIARY COINSURANCE.—In the
case of a part B rebatable drug furnished on or after April
1, 2023, if the payment amount described in paragraph
(3)(A)(ii)(I) (or, in the case of a part B rebatable drug that
is a selected drug (as defined in section 1192(c)), the payment
amount described in subsection (b)(1)(B) for such drug) for
a calendar quarter exceeds the inflation adjusted payment for
such quarter—
‘‘(A) in computing the amount of any coinsurance
applicable under this part to an individual to whom such
drug is furnished, the computation of such coinsurance
shall be equal to 20 percent of the inflation-adjusted pay-
ment amount determined under paragraph (3)(C) for such
part B rebatable drug; and
‘‘(B) the amount of such coinsurance for such calendar
quarter, as computed under subparagraph (A), shall be
applied as a percent, as determined by the Secretary, to
the payment amount that would otherwise apply under
subparagraphs (B) or (C) of subsection (b)(1).
‘‘(6) REBATE DEPOSITS.—Amounts paid as rebates under
paragraph (1)(B) shall be deposited into the Federal Supple-
mentary Medical Insurance Trust Fund established under sec-
tion 1841.
H. R. 5376—52
‘‘(7) CIVIL MONEY PENALTY.—If a manufacturer of a part
B rebatable drug has failed to comply with the requirements
under paragraph (1)(B) for such drug for a calendar quarter,
the manufacturer shall be subject to, in accordance with a
process established by the Secretary pursuant to regulations,
a civil money penalty in an amount equal to at least 125
percent of the amount specified in paragraph (3) for such drug
for such calendar quarter. The provisions of section 1128A
(other than subsections (a) (with respect to amounts of penalties
or additional assessments) and (b)) shall apply to a civil money
penalty under this paragraph in the same manner as such
provisions apply to a penalty or proceeding under section
1128A(a).
‘‘(8) LIMITATION ON ADMINISTRATIVE OR JUDICIAL REVIEW.—
There shall be no administrative or judicial review of any
of the following:
‘‘(A) The determination of units under this subsection.
‘‘(B) The determination of whether a drug is a part
B rebatable drug under this subsection.
‘‘(C) The calculation of the rebate amount under this
subsection.
‘‘(D) The computation of coinsurance under paragraph
(5) of this subsection.
‘‘(E) The computation of amounts paid under section
1833(a)(1)(EE).’’.
(b) AMOUNTS PAYABLE; COST-SHARING.—Section 1833 of the
Social Security Act (42 U.S.C. 1395l) is amended—
(1) in subsection (a)(1)—
(A) in subparagraph (G), by inserting ‘‘, subject to
subsection (i)(9),’’ after ‘‘the amounts paid’’;
(B) in subparagraph (S), by striking ‘‘with respect to’’
and inserting ‘‘subject to subparagraph (EE), with respect
to’’;
(C) by striking ‘‘and (DD)’’ and inserting ‘‘(DD)’’; and
(D) by inserting before the semicolon at the end the
following: ‘‘, and (EE) with respect to a part B rebatable
drug (as defined in paragraph (2) of section 1847A(i)) fur-
nished on or after April 1, 2023, for which the payment
amount for a calendar quarter under paragraph (3)(A)(ii)(I)
of such section (or, in the case of a part B rebatable
drug that is a selected drug (as defined in section 1192(c)
for which, the payment amount described in section
1847A(b)(1)(B)) for such drug for such quarter exceeds the
inflation-adjusted payment under paragraph (3)(A)(ii)(II)
of such section for such quarter, the amounts paid shall
be equal to the percent of the payment amount under
paragraph (3)(A)(ii)(I) of such section or section
1847A(b)(1)(B), as applicable, that equals the difference
between (i) 100 percent, and (ii) the percent applied under
section 1847A(i)(5)(B)’’;
(2) in subsection (i), by adding at the end the following
new paragraph:
‘‘(9) In the case of a part B rebatable drug (as defined in
paragraph (2) of section 1847A(i)) for which payment under this
subsection is not packaged into a payment for a service furnished
on or after April 1, 2023, under the revised payment system under
this subsection, in lieu of calculation of coinsurance and the amount
H. R. 5376—53
of payment otherwise applicable under this subsection, the provi-
sions of section 1847A(i)(5) and paragraph (1)(EE) of subsection
(a), shall, as determined appropriate by the Secretary, apply under
this subsection in the same manner as such provisions of section
1847A(i)(5) and subsection (a) apply under such section and sub-
section.’’; and
(3) in subsection (t)(8), by adding at the end the following
new subparagraph:
‘‘(F) PART B REBATABLE DRUGS.—In the case of a part
B rebatable drug (as defined in paragraph (2) of section
1847A(i), except if such drug does not have a copayment
amount as a result of application of subparagraph (E))
for which payment under this part is not packaged into
a payment for a covered OPD service (or group of services)
furnished on or after April 1, 2023, and the payment for
such drug under this subsection is the same as the amount
for a calendar quarter under paragraph (3)(A)(ii)(I) of sec-
tion 1847A(i), under the system under this subsection, in
lieu of calculation of the copayment amount and the amount
of payment otherwise applicable under this subsection
(other than the application of the limitation described in
subparagraph (C)), the provisions of section 1847A(i)(5)
and paragraph (1)(EE) of subsection (a), shall, as deter-
mined appropriate by the Secretary, apply under this sub-
section in the same manner as such provisions of section
1847A(i)(5) and subsection (a) apply under such section
and subsection.’’.
(c) CONFORMING AMENDMENTS.—
(1) TO PART B ASP CALCULATION.—Section 1847A(c)(3) of
the Social Security Act (42 U.S.C. 1395w–3a(c)(3)) is amended
by inserting ‘‘subsection (i) or’’ before ‘‘section 1927’’.
(2) EXCLUDING PART B DRUG INFLATION REBATE FROM BEST
PRICE.—Section 1927(c)(1)(C)(ii)(I) of the Social Security Act
(42 U.S.C. 1396r–8(c)(1)(C)(ii)(I)) is amended by inserting ‘‘or
section 1847A(i)’’ after ‘‘this section’’.
(3) COORDINATION WITH MEDICAID REBATE INFORMATION
DISCLOSURE.—Section 1927(b)(3)(D)(i) of the Social Security Act
(42 U.S.C. 1396r–8(b)(3)(D)(i)) is amended by inserting ‘‘and
the rebate’’ after ‘‘the payment amount’’.
(4) EXCLUDING PART B DRUG INFLATION REBATES FROM AVER-
AGE MANUFACTURER PRICE.—Section 1927(k)(1)(B)(i) of the
Social Security Act (42 U.S.C. 1396r–8(k)(1)(B)(i)), as amended
by section 11001(b)(3), is amended—
(A) in subclause (V), by striking ‘‘and’’ at the end;
(B) in subclause (VI), by striking the period at the
end and inserting a semicolon; and
(C) by adding at the end the following new subclause:
‘‘(VII) rebates paid by manufacturers under
section 1847A(i); and’’.
(d) FUNDING.—In addition to amounts otherwise available,
there are appropriated to the Centers for Medicare & Medicaid
Services, out of any money in the Treasury not otherwise appro-
priated, $80,000,000 for fiscal year 2022, including $12,500,000
to carry out the provisions of, including the amendments made
by, this section in fiscal year 2022, and $7,500,000 to carry out
the provisions of, including the amendments made by, this section
H. R. 5376—54
in each of fiscal years 2023 through 2031, to remain available
until expended.
SEC. 11102. MEDICARE PART D REBATE BY MANUFACTURERS.
(a) IN GENERAL.—Part D of title XVIII of the Social Security
Act is amended by inserting after section 1860D–14A (42 U.S.C.
1395w–114a) the following new section:
‘‘SEC. 1860D–14B. MANUFACTURER REBATE FOR CERTAIN DRUGS WITH
PRICES INCREASING FASTER THAN INFLATION.
‘‘(a) REQUIREMENTS.—
‘‘(1) SECRETARIAL PROVISION OF INFORMATION.—Not later
than 9 months after the end of each applicable period (as
defined in subsection (g)(7)), subject to paragraph (3), the Sec-
retary shall, for each part D rebatable drug, report to each
manufacturer of such part D rebatable drug the following for
such period:
‘‘(A) The amount (if any) of the excess annual manufac-
turer price increase described in subsection (b)(1)(A)(ii) for
each dosage form and strength with respect to such drug
and period.
‘‘(B) The rebate amount specified under subsection (b)
for each dosage form and strength with respect to such
drug and period.
‘‘(2) MANUFACTURER REQUIREMENTS.—For each applicable
period, the manufacturer of a part D rebatable drug, for each
dosage form and strength with respect to such drug, not later
than 30 days after the date of receipt from the Secretary
of the information described in paragraph (1) for such period,
shall provide to the Secretary a rebate that is equal to the
amount specified in subsection (b) for such dosage form and
strength with respect to such drug for such period.
‘‘(3) TRANSITION RULE FOR REPORTING.—The Secretary may,
for each rebatable covered part D drug, delay the timeframe
for reporting the information and rebate amount described in
subparagraphs (A) and (B) of such paragraph for the applicable
periods beginning October 1, 2022, and October 1, 2023, until
not later than December 31, 2025.
‘‘(b) REBATE AMOUNT.—
‘‘(1) IN GENERAL.—
‘‘(A) CALCULATION.—For purposes of this section, the
amount specified in this subsection for a dosage form and
strength with respect to a part D rebatable drug and
applicable period is, subject to subparagraph (C), paragraph
(5)(B), and paragraph (6), the estimated amount equal to
the product of—
‘‘(i) subject to subparagraph (B) of this paragraph,
the total number of units of such dosage form and
strength for each rebatable covered part D drug dis-
pensed under this part during the applicable period;
and
‘‘(ii) the amount (if any) by which—
‘‘(I) the annual manufacturer price (as deter-
mined in paragraph (2)) paid for such dosage form
and strength with respect to such part D rebatable
drug for the period; exceeds
‘‘(II) the inflation-adjusted payment amount
determined under paragraph (3) for such dosage
H. R. 5376—55
form and strength with respect to such part D
rebatable drug for the period.
‘‘(B) EXCLUDED UNITS.—For purposes of subparagraph
(A)(i), beginning with plan year 2026, the Secretary shall
exclude from the total number of units for a dosage form
and strength with respect to a part D rebatable drug,
with respect to an applicable period, units of each dosage
form and strength of such part D rebatable drug for which
the manufacturer provides a discount under the program
under section 340B of the Public Health Service Act.
‘‘(C) REDUCTION OR WAIVER FOR SHORTAGES AND SEVERE
SUPPLY CHAIN DISRUPTIONS.—The Secretary shall reduce
or waive the amount under subparagraph (A) with respect
to a part D rebatable drug and an applicable period—
‘‘(i) in the case of a part D rebatable drug that
is described as currently in shortage on the shortage
list in effect under section 506E of the Federal Food,
Drug, and Cosmetic Act at any point during the
applicable period;
‘‘(ii) in the case of a generic part D rebatable
drug (described in subsection (g)(1)(C)(ii)) or a bio-
similar (defined as a biological product licensed under
section 351(k) of the Public Health Service Act), when
the Secretary determines there is a severe supply chain
disruption during the applicable period, such as that
caused by a natural disaster or other unique or unex-
pected event; and
‘‘(iii) in the case of a generic Part D rebatable
drug (as so described), if the Secretary determines
that without such reduction or waiver, the drug is
likely to be described as in shortage on such shortage
list during a subsequent applicable period.
‘‘(2) DETERMINATION OF ANNUAL MANUFACTURER PRICE.—
The annual manufacturer price determined under this para-
graph for a dosage form and strength, with respect to a part
D rebatable drug and an applicable period, is the sum of the
products of—
‘‘(A) the average manufacturer price (as defined in
subsection (g)(6)) of such dosage form and strength, as
calculated for a unit of such drug, with respect to each
of the calendar quarters of such period; and
‘‘(B) the ratio of—
‘‘(i) the total number of units of such dosage form
and strength reported under section 1927 with respect
to each such calendar quarter of such period; to
‘‘(ii) the total number of units of such dosage form
and strength reported under section 1927 with respect
to such period, as determined by the Secretary.
‘‘(3) DETERMINATION OF INFLATION-ADJUSTED PAYMENT
AMOUNT.—The inflation-adjusted payment amount determined
under this paragraph for a dosage form and strength with
respect to a part D rebatable drug for an applicable period,
subject to paragraph (5), is—
‘‘(A) the benchmark period manufacturer price deter-
mined under paragraph (4) for such dosage form and
strength with respect to such drug and period; increased
by
H. R. 5376—56
‘‘(B) the percentage by which the applicable period
CPI–U (as defined in subsection (g)(5)) for the period
exceeds the benchmark period CPI–U (as defined in sub-
section (g)(4)).
‘‘(4) DETERMINATION OF BENCHMARK PERIOD MANUFACTURER
PRICE.—The benchmark period manufacturer price determined
under this paragraph for a dosage form and strength, with
respect to a part D rebatable drug and an applicable period,
is the sum of the products of—
‘‘(A) the average manufacturer price (as defined in
subsection (g)(6)) of such dosage form and strength, as
calculated for a unit of such drug, with respect to each
of the calendar quarters of the payment amount benchmark
period (as defined in subsection (g)(3)); and
‘‘(B) the ratio of—
‘‘(i) the total number of units reported under sec-
tion 1927 of such dosage form and strength with
respect to each such calendar quarter of such payment
amount benchmark period; to
‘‘(ii) the total number of units reported under sec-
tion 1927 of such dosage form and strength with
respect to such payment amount benchmark period.
‘‘(5) SPECIAL TREATMENT OF CERTAIN DRUGS AND EXEMP-
TION.—
‘‘(A) SUBSEQUENTLY APPROVED DRUGS.—In the case of
a part D rebatable drug first approved or licensed by the
Food and Drug Administration after October 1, 2021, sub-
paragraphs (A) and (B) of paragraph (4) shall be applied
as if the term ‘payment amount benchmark period’ were
defined under subsection (g)(3) as the first calendar year
beginning after the day on which the drug was first mar-
keted and subparagraph (B) of paragraph (3) shall be
applied as if the term ‘benchmark period CPI–U’ were
defined under subsection (g)(4) as if the reference to
‘January 2021’ under such subsection were a reference
to ‘January of the first year beginning after the date on
which the drug was first marketed’.
‘‘(B) TREATMENT OF NEW FORMULATIONS.—
‘‘(i) IN GENERAL.—In the case of a part D rebatable
drug that is a line extension of a part D rebatable
drug that is an oral solid dosage form, the Secretary
shall establish a formula for determining the rebate
amount under paragraph (1) and the inflation adjusted
payment amount under paragraph (3) with respect to
such part D rebatable drug and an applicable period,
consistent with the formula applied under subsection
(c)(2)(C) of section 1927 for determining a rebate obliga-
tion for a rebate period under such section.
‘‘(ii) LINE EXTENSION DEFINED.—In this subpara-
graph, the term ‘line extension’ means, with respect
to a part D rebatable drug, a new formulation of the
drug, such as an extended release formulation, but
does not include an abuse-deterrent formulation of the
drug (as determined by the Secretary), regardless of
whether such abuse-deterrent formulation is an
extended release formulation.
H. R. 5376—57
‘‘(C) SELECTED DRUGS.—In the case of a part D
rebatable drug that is a selected drug (as defined in section
1192(c)) with respect to a price applicability period (as
defined in section 1191(b)(2)), in the case such drug is
no longer considered to be a selected drug under section
1192(c), for each applicable period (as defined under sub-
section (g)(7)) beginning after the price applicability period
with respect to such drug, subparagraphs (A) and (B) of
paragraph (4) shall be applied as if the term ‘payment
amount benchmark period’ were defined under subsection
(g)(3) as the last year beginning during such price applica-
bility period with respect to such selected drug and
subparagraph (B) of paragraph (3) shall be applied as if
the term ‘benchmark period CPI–U’ were defined under
subsection (g)(4) as if the reference to ‘January 2021’ under
such subsection were a reference to ‘January of the last
year beginning during such price applicability period with
respect to such drug’.
‘‘(6) RECONCILIATION IN CASE OF REVISED INFORMATION.—
The Secretary shall provide for a method and process under
which, in the case where a PDP sponsor of a prescription
drug plan or an MA organization offering an MA–PD plan
submits revisions to the number of units of a rebatable covered
part D drug dispensed, the Secretary determines, pursuant
to such revisions, adjustments, if any, to the calculation of
the amount specified in this subsection for a dosage form and
strength with respect to such part D rebatable drug and an
applicable period and reconciles any overpayments or underpay-
ments in amounts paid as rebates under this subsection. Any
identified underpayment shall be rectified by the manufacturer
not later than 30 days after the date of receipt from the Sec-
retary of information on such underpayment.
‘‘(c) REBATE DEPOSITS.—Amounts paid as rebates under sub-
section (b) shall be deposited into the Medicare Prescription Drug
Account in the Federal Supplementary Medical Insurance Trust
Fund established under section 1841.
‘‘(d) INFORMATION.—For purposes of carrying out this section,
the Secretary shall use information submitted by—
‘‘(1) manufacturers under section 1927(b)(3);
‘‘(2) States under section 1927(b)(2)(A); and
‘‘(3) PDP sponsors of prescription drug plans and MA
organization offering MA–PD plans under this part.
‘‘(e) CIVIL MONEY PENALTY.—If a manufacturer of a part D
rebatable drug has failed to comply with the requirement under
subsection (a)(2) with respect to such drug for an applicable period,
the manufacturer shall be subject to a civil money penalty in
an amount equal to 125 percent of the amount specified in sub-
section (b) for such drug for such period. The provisions of section
1128A (other than subsections (a) (with respect to amounts of
penalties or additional assessments) and (b)) shall apply to a civil
money penalty under this subsection in the same manner as such
provisions apply to a penalty or proceeding under section 1128A(a).
‘‘(f) LIMITATION ON ADMINISTRATIVE OR JUDICIAL REVIEW.—
There shall be no administrative or judicial review of any of the
following:
‘‘(1) The determination of units under this section.
H. R. 5376—58
‘‘(2) The determination of whether a drug is a part D
rebatable drug under this section.
‘‘(3) The calculation of the rebate amount under this section.
‘‘(g) DEFINITIONS.—In this section:
‘‘(1) PART D REBATABLE DRUG.—
‘‘(A) IN GENERAL.—Except as provided in subparagraph
(B), the term ‘part D rebatable drug’ means, with respect
to an applicable period, a drug or biological described in
subparagraph (C) that is a covered part D drug (as such
term is defined under section 1860D–2(e)).
‘‘(B) EXCLUSION.—
‘‘(i) IN GENERAL.—Such term shall, with respect
to an applicable period, not include a drug or biological
if the average annual total cost under this part for
such period per individual who uses such a drug or
biological, as determined by the Secretary, is less than,
subject to clause (ii), $100, as determined by the Sec-
retary using the most recent data available or, if data
is not available, as estimated by the Secretary.
‘‘(ii) INCREASE.—The dollar amount applied under
clause (i)—
‘‘(I) for the applicable period beginning October
1, 2023, shall be the dollar amount specified under
such clause for the applicable period beginning
October 1, 2022, increased by the percentage
increase in the consumer price index for all urban
consumers (United States city average) for the 12-
month period beginning with October of 2023; and
‘‘(II) for a subsequent applicable period, shall
be the dollar amount specified in this clause for
the previous applicable period, increased by the
percentage increase in the consumer price index
for all urban consumers (United States city aver-
age) for the 12-month period beginning with
October of the previous period.
Any dollar amount specified under this clause that
is not a multiple of $10 shall be rounded to the nearest
multiple of $10.
‘‘(C) DRUG OR BIOLOGICAL DESCRIBED.—A drug or
biological described in this subparagraph is a drug or
biological that, as of the first day of the applicable period
involved, is—
‘‘(i) a drug approved under a new drug application
under section 505(c) of the Federal Food, Drug, and
Cosmetic Act;
‘‘(ii) a drug approved under an abbreviated new
drug application under section 505(j) of the Federal
Food, Drug, and Cosmetic Act, in the case where—
‘‘(I) the reference listed drug approved under
section 505(c) of the Federal Food, Drug, and Cos-
metic Act, including any ‘authorized generic drug’
(as that term is defined in section 505(t)(3) of
the Federal Food, Drug, and Cosmetic Act), is not
being marketed, as identified in the Food and Drug
Administration’s National Drug Code Directory;
H. R. 5376—59
‘‘(II) there is no other drug approved under
section 505(j) of the Federal Food, Drug, and Cos-
metic Act that is rated as therapeutically equiva-
lent (under the Food and Drug Administration’s
most recent publication of ‘Approved Drug Prod-
ucts with Therapeutic Equivalence Evaluations’)
and that is being marketed, as identified in the
Food and Drug Administration’s National Drug
Code Directory;
‘‘(III) the manufacturer is not a ‘first applicant’
during the ‘180-day exclusivity period’, as those
terms are defined in section 505(j)(5)(B)(iv) of the
Federal Food, Drug, and Cosmetic Act; and
‘‘(IV) the manufacturer is not a ‘first approved
applicant’ for a competitive generic therapy, as
that term is defined in section 505(j)(5)(B)(v) of
the Federal Food, Drug, and Cosmetic Act; or
‘‘(iii) a biological licensed under section 351 of the
Public Health Service Act.
‘‘(2) UNIT.—The term ‘unit’ means, with respect to a part
D rebatable drug, the lowest dispensable amount (such as a
capsule or tablet, milligram of molecules, or grams) of the
part D rebatable drug, as reported under section 1927.
‘‘(3) PAYMENT AMOUNT BENCHMARK PERIOD.—The term ‘pay-
ment amount benchmark period’ means the period beginning
January 1, 2021, and ending in the month immediately prior
to October 1, 2021.
‘‘(4) BENCHMARK PERIOD CPI–U.—The term ‘benchmark
period CPI–U’ means the consumer price index for all urban
consumers (United States city average) for January 2021.
‘‘(5) APPLICABLE PERIOD CPI–U.—The term ‘applicable period
CPI–U’ means, with respect to an applicable period, the con-
sumer price index for all urban consumers (United States city
average) for the first month of such applicable period.
‘‘(6) AVERAGE MANUFACTURER PRICE.—The term ‘average
manufacturer price’ has the meaning, with respect to a part
D rebatable drug of a manufacturer, given such term in section
1927(k)(1), with respect to a covered outpatient drug of a manu-
facturer for a rebate period under section 1927.
‘‘(7) APPLICABLE PERIOD.—The term ‘applicable period’
means a 12-month period beginning with October 1 of a year
(beginning with October 1, 2022).
‘‘(h) IMPLEMENTATION FOR 2022, 2023, AND 2024.—The Sec-
retary shall implement this section for 2022, 2023, and 2024 by
program instruction or other forms of program guidance.’’.
(b) CONFORMING AMENDMENTS.—
(1) TO PART B ASP CALCULATION.—Section 1847A(c)(3) of
the Social Security Act (42 U.S.C. 1395w–3a(c)(3)), as amended
by section 11101(c)(1), is amended by striking ‘‘subsection (i)
or section 1927’’ and inserting ‘‘subsection (i), section 1927,
or section 1860D–14B’’.
(2) EXCLUDING PART D DRUG INFLATION REBATE FROM BEST
PRICE.—Section 1927(c)(1)(C)(ii)(I) of the Social Security Act
(42 U.S.C. 1396r–8(c)(1)(C)(ii)(I)), as amended by section
11101(c)(2), is amended by striking ‘‘or section 1847A(i)’’ and
inserting ‘‘, section 1847A(i), or section 1860D–14B’’.
H. R. 5376—60
(3) COORDINATION WITH MEDICAID REBATE INFORMATION
DISCLOSURE.—Section 1927(b)(3)(D)(i) of the Social Security Act
(42 U.S.C. 1396r–8(b)(3)(D)(i)), as amended by sections 11002(b)
and 11101(c)(3), is amended by striking ‘‘or section 1192(f),
including rebates under paragraph (4) of such section’’ and
inserting ‘‘, section 1192(f), including rebates under paragraph
(4) of such section, or section 1860D–14B’’.
(4) EXCLUDING PART D DRUG INFLATION REBATES FROM
AVERAGE MANUFACTURER PRICE.—Section 1927(k)(1)(B)(i) of the
Social Security Act (42 U.S.C. 1396r–8(k)(1)(B)(i)), as amended
by section 11001(b)(3) and section 11101(c)(4), is amended by
adding at the end the following new subclause:
(A) in subclause (VI), by striking ‘‘and’’ at the end;
(B) in subclause (VII), by striking the period at the
end and inserting a semicolon; and
(C) by adding at the end the following new subclause:
‘‘(VIII) rebates paid by manufacturers under
section 1860D–14B.’’.
(c) FUNDING.—In addition to amounts otherwise available, there
are appropriated to the Centers for Medicare & Medicaid Services,
out of any money in the Treasury not otherwise appropriated,
$80,000,000 for fiscal year 2022, including $12,500,000 to carry
out the provisions of, including the amendments made by, this
section in fiscal year 2022, and $7,500,000 to carry out the provi-
sions of, including the amendments made by, this section in each
of fiscal years 2023 through 2031, to remain available until
expended.
PART 3—PART D IMPROVEMENTS AND MAX-
IMUM OUT-OF-POCKET CAP FOR MEDICARE
BENEFICIARIES
SEC. 11201. MEDICARE PART D BENEFIT REDESIGN.
(a) BENEFIT STRUCTURE REDESIGN.—Section 1860D–2(b) of the
Social Security Act (42 U.S.C. 1395w–102(b)) is amended—
(1) in paragraph (2)—
(A) in subparagraph (A), in the matter preceding clause
(i), by inserting ‘‘for a year preceding 2025 and for costs
above the annual deductible specified in paragraph (1)
and up to the annual out-of-pocket threshold specified in
paragraph (4)(B) for 2025 and each subsequent year’’ after
‘‘paragraph (3)’’;
(B) in subparagraph (C)—
(i) in clause (i), in the matter preceding subclause
(I), by inserting ‘‘for a year preceding 2025,’’ after
‘‘paragraph (4),’’; and
(ii) in clause (ii)(III), by striking ‘‘and each subse-
quent year’’ and inserting ‘‘through 2024’’; and
(C) in subparagraph (D)—
(i) in clause (i)—
(I) in the matter preceding subclause (I), by
inserting ‘‘for a year preceding 2025,’’ after ‘‘para-
graph (4),’’; and
(II) in subclause (I)(bb), by striking ‘‘a year
after 2018’’ and inserting ‘‘each of years 2019
through 2024’’; and
H. R. 5376—61
(ii) in clause (ii)(V), by striking ‘‘2019 and each
subsequent year’’ and inserting ‘‘each of years 2019
through 2024’’;
(2) in paragraph (3)(A)—
(A) in the matter preceding clause (i), by inserting
‘‘for a year preceding 2025,’’ after ‘‘and (4),’’; and
(B) in clause (ii), by striking ‘‘for a subsequent year’’
and inserting ‘‘for each of years 2007 through 2024’’; and
(3) in paragraph (4)—
(A) in subparagraph (A)—
(i) in clause (i)—
(I) by redesignating subclauses (I) and (II) as
items (aa) and (bb), respectively, and moving the
margin of each such redesignated item 2 ems to
the right;
(II) in the matter preceding item (aa), as
redesignated by subclause (I), by striking ‘‘is equal
to the greater of—’’ and inserting ‘‘is equal to—
‘‘(I) for a year preceding 2024, the greater
of—’’;
(III) by striking the period at the end of item
(bb), as redesignated by subclause (I), and
inserting ‘‘; and’’; and
(IV) by adding at the end the following:
‘‘(II) for 2024 and each succeeding year, $0.’’;
and
(ii) in clause (ii)—
(I) by striking ‘‘clause (i)(I)’’ and inserting
‘‘clause (i)(I)(aa)’’; and
(II) by adding at the end the following new
sentence: ‘‘The Secretary shall continue to cal-
culate the dollar amounts specified in clause
(i)(I)(aa), including with the adjustment under this
clause, after 2023 for purposes of section 1860D–
14(a)(1)(D)(iii).’’;
(B) in subparagraph (B)—
(i) in clause (i)—
(I) in subclause (V), by striking ‘‘or’’ at the
end;
(II) in subclause (VI)—
(aa) by striking ‘‘for a subsequent year’’
and inserting ‘‘for each of years 2021 through
2024’’; and
(bb) by striking the period at the end and
inserting a semicolon; and
(III) by adding at the end the following new
subclauses:
‘‘(VII) for 2025, is equal to $2,000; or
‘‘(VIII) for a subsequent year, is equal to the
amount specified in this subparagraph for the pre-
vious year, increased by the annual percentage
increase described in paragraph (6) for the year
involved.’’; and
(ii) in clause (ii), by striking ‘‘clause (i)(II)’’ and
inserting ‘‘clause (i)’’;
(C) in subparagraph (C)—
H. R. 5376—62
(i) in clause (i), by striking ‘‘and for amounts’’
and inserting ‘‘and, for a year preceding 2025, for
amounts’’; and
(ii) in clause (iii)—
(I) by redesignating subclauses (I) through (IV)
as items (aa) through (dd) and indenting appro-
priately;
(II) by striking ‘‘if such costs are borne or
paid’’ and inserting ‘‘if such costs—
‘‘(I) are borne or paid—’’; and
(III) in item (dd), by striking the period at
the end and inserting ‘‘; or’’; and
(IV) by adding at the end the following new
subclause:
‘‘(II) for 2025 and subsequent years, are
reimbursed through insurance, a group health
plan, or certain other third party payment arrange-
ments, but not including the coverage provided
by a prescription drug plan or an MA–PD plan
that is basic prescription drug coverage (as defined
in subsection (a)(3)) or any payments by a manu-
facturer under the manufacturer discount program
under section 1860D–14C.’’; and
(D) in subparagraph (E), by striking ‘‘In applying’’ and
inserting ‘‘For each of years 2011 through 2024, in
applying’’.
(b) REINSURANCE PAYMENT AMOUNT.—Section 1860D–15(b) of
the Social Security Act (42 U.S.C. 1395w–115(b)) is amended—
(1) in paragraph (1)—
(A) by striking ‘‘equal to 80 percent’’ and inserting
‘‘equal to—
‘‘(A) for a year preceding 2025, 80 percent’’;
(B) in subparagraph (A), as added by subparagraph
(A), by striking the period at the end and inserting ‘‘;
and’’; and
(C) by adding at the end the following new subpara-
graph:
‘‘(B) for 2025 and each subsequent year, the sum of—
‘‘(i) with respect to applicable drugs (as defined
in section 1860D–14C(g)(2)), an amount equal to 20
percent of such allowable reinsurance costs attributable
to that portion of gross covered prescription drug costs
as specified in paragraph (3) incurred in the coverage
year after such individual has incurred costs that
exceed the annual out-of-pocket threshold specified in
section 1860D–2(b)(4)(B); and
‘‘(ii) with respect to covered part D drugs that
are not applicable drugs (as so defined), an amount
equal to 40 percent of such allowable reinsurance costs
attributable to that portion of gross covered prescrip-
tion drug costs as specified in paragraph (3) incurred
in the coverage year after such individual has incurred
costs that exceed the annual out-of-pocket threshold
specified in section 1860D–2(b)(4)(B).’’;
(2) in paragraph (2)—
(A) by striking ‘‘COSTS.—For purposes’’ and inserting
‘‘COSTS.—
H. R. 5376—63
‘‘(A) IN GENERAL.—Subject to subparagraph (B), for
purposes’’; and
(B) by adding at the end the following new subpara-
graph:
‘‘(B) INCLUSION OF MANUFACTURER DISCOUNTS ON
APPLICABLE DRUGS.—For purposes of applying subpara-
graph (A), the term ‘allowable reinsurance costs’ shall
include the portion of the negotiated price (as defined in
section 1860D–14C(g)(6)) of an applicable drug (as defined
in section 1860D–14C(g)(2)) that was paid by a manufac-
turer under the manufacturer discount program under sec-
tion 1860D–14C.’’; and
(3) in paragraph (3)—
(A) in the first sentence, by striking ‘‘For purposes’’
and inserting ‘‘Subject to paragraph (2)(B), for purposes’’;
and
(B) in the second sentence, by inserting ‘‘(or, with
respect to 2025 and subsequent years, in the case of an
applicable drug, as defined in section 1860D–14C(g)(2), by
a manufacturer)’’ after ‘‘by the individual or under the
plan’’.
(c) MANUFACTURER DISCOUNT PROGRAM.—
(1) IN GENERAL.—Part D of title XVIII of the Social Security
Act (42 U.S.C. 1395w–101 through 42 U.S.C. 1395w–153), as
amended by section 11102, is amended by inserting after section
1860D–14B the following new sections:
‘‘SEC. 1860D–14C. MANUFACTURER DISCOUNT PROGRAM.
‘‘(a) ESTABLISHMENT.—The Secretary shall establish a manufac-
turer discount program (in this section referred to as the ‘program’).
Under the program, the Secretary shall enter into agreements
described in subsection (b) with manufacturers and provide for
the performance of the duties described in subsection (c).
‘‘(b) TERMS OF AGREEMENT.—
‘‘(1) IN GENERAL.—
‘‘(A) AGREEMENT.—An agreement under this section
shall require the manufacturer to provide, in accordance
with this section, discounted prices for applicable drugs
of the manufacturer that are dispensed to applicable bene-
ficiaries on or after January 1, 2025.
‘‘(B) CLARIFICATION.—Nothing in this section shall be
construed as affecting—
‘‘(i) the application of a coinsurance of 25 percent
of the negotiated price, as applied under paragraph
(2)(A) of section 1860D–2(b), for costs described in such
paragraph; or
‘‘(ii) the application of the copayment amount
described in paragraph (4)(A) of such section, with
respect to costs described in such paragraph.
‘‘(C) TIMING OF AGREEMENT.—
‘‘(i) SPECIAL RULE FOR 2025.—In order for an agree-
ment with a manufacturer to be in effect under this
section with respect to the period beginning on January
1, 2025, and ending on December 31, 2025, the manu-
facturer shall enter into such agreement not later than
March 1, 2024.
H. R. 5376—64
‘‘(ii) 2026 AND SUBSEQUENT YEARS.—In order for
an agreement with a manufacturer to be in effect under
this section with respect to plan year 2026 or a subse-
quent plan year, the manufacturer shall enter into
such agreement not later than a calendar quarter or
semi-annual deadline established by the Secretary.
‘‘(2) PROVISION OF APPROPRIATE DATA.—Each manufacturer
with an agreement in effect under this section shall collect
and have available appropriate data, as determined by the
Secretary, to ensure that it can demonstrate to the Secretary
compliance with the requirements under the program.
‘‘(3) COMPLIANCE WITH REQUIREMENTS FOR ADMINISTRATION
OF PROGRAM.—Each manufacturer with an agreement in effect
under this section shall comply with requirements imposed
by the Secretary, as applicable, for purposes of administering
the program, including any determination under subparagraph
(A) of subsection (c)(1) or procedures established under such
subsection (c)(1).
‘‘(4) LENGTH OF AGREEMENT.—
‘‘(A) IN GENERAL.—An agreement under this section
shall be effective for an initial period of not less than
12 months and shall be automatically renewed for a period
of not less than 1 year unless terminated under subpara-
graph (B).
‘‘(B) TERMINATION.—
‘‘(i) BY THE SECRETARY.—The Secretary shall pro-
vide for termination of an agreement under this section
for a knowing and willful violation of the requirements
of the agreement or other good cause shown. Such
termination shall not be effective earlier than 30 days
after the date of notice to the manufacturer of such
termination. The Secretary shall provide, upon request,
a manufacturer with a hearing concerning such a
termination, and such hearing shall take place prior
to the effective date of the termination with sufficient
time for such effective date to be repealed if the Sec-
retary determines appropriate.
‘‘(ii) BY A MANUFACTURER.—A manufacturer may
terminate an agreement under this section for any
reason. Any such termination shall be effective, with
respect to a plan year—
‘‘(I) if the termination occurs before January
31 of a plan year, as of the day after the end
of the plan year; and
‘‘(II) if the termination occurs on or after
January 31 of a plan year, as of the day after
the end of the succeeding plan year.
‘‘(iii) EFFECTIVENESS OF TERMINATION.—Any termi-
nation under this subparagraph shall not affect dis-
counts for applicable drugs of the manufacturer that
are due under the agreement before the effective date
of its termination.
‘‘(5) EFFECTIVE DATE OF AGREEMENT.—An agreement under
this section shall take effect at the start of a calendar quarter
or another date specified by the Secretary.
‘‘(c) DUTIES DESCRIBED.—The duties described in this subsection
are the following:
H. R. 5376—65
‘‘(1) ADMINISTRATION OF PROGRAM.—Administering the pro-
gram, including—
‘‘(A) the determination of the amount of the discounted
price of an applicable drug of a manufacturer;
‘‘(B) the establishment of procedures to ensure that,
not later than the applicable number of calendar days
after the dispensing of an applicable drug by a pharmacy
or mail order service, the pharmacy or mail order service
is reimbursed for an amount equal to the difference
between—
‘‘(i) the negotiated price of the applicable drug;
and
‘‘(ii) the discounted price of the applicable drug;
‘‘(C) the establishment of procedures to ensure that
the discounted price for an applicable drug under this
section is applied before any coverage or financial assist-
ance under other health benefit plans or programs that
provide coverage or financial assistance for the purchase
or provision of prescription drug coverage on behalf of
applicable beneficiaries as specified by the Secretary; and
‘‘(D) providing a reasonable dispute resolution mecha-
nism to resolve disagreements between manufacturers,
prescription drug plans and MA–PD plans, and the Sec-
retary.
‘‘(2) MONITORING COMPLIANCE.—The Secretary shall mon-
itor compliance by a manufacturer with the terms of an agree-
ment under this section.
‘‘(3) COLLECTION OF DATA FROM PRESCRIPTION DRUG PLANS
AND MA–PD PLANS.—The Secretary may collect appropriate data
from prescription drug plans and MA–PD plans in a timeframe
that allows for discounted prices to be provided for applicable
drugs under this section.
‘‘(d) ADMINISTRATION.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), the Secretary
shall provide for the implementation of this section, including
the performance of the duties described in subsection (c).
‘‘(2) LIMITATION.—In providing for the implementation of
this section, the Secretary shall not receive or distribute any
funds of a manufacturer under the program.
‘‘(e) CIVIL MONEY PENALTY.—
‘‘(1) IN GENERAL.—A manufacturer that fails to provide
discounted prices for applicable drugs of the manufacturer dis-
pensed to applicable beneficiaries in accordance with an agree-
ment in effect under this section shall be subject to a civil
money penalty for each such failure in an amount the Secretary
determines is equal to the sum of—
‘‘(A) the amount that the manufacturer would have
paid with respect to such discounts under the agreement,
which will then be used to pay the discounts which the
manufacturer had failed to provide; and
‘‘(B) 25 percent of such amount.
‘‘(2) APPLICATION.—The provisions of section 1128A (other
than subsections (a) and (b)) shall apply to a civil money
penalty under this subsection in the same manner as such
provisions apply to a penalty or proceeding under section
1128A(a).
H. R. 5376—66
‘‘(f) CLARIFICATION REGARDING AVAILABILITY OF OTHER COV-
ERED PART D DRUGS.—Nothing in this section shall prevent an
applicable beneficiary from purchasing a covered part D drug that
is not an applicable drug (including a generic drug or a drug
that is not on the formulary of the prescription drug plan or MA–
PD plan that the applicable beneficiary is enrolled in).
‘‘(g) DEFINITIONS.—In this section:
‘‘(1) APPLICABLE BENEFICIARY.—The term ‘applicable bene-
ficiary’ means an individual who, on the date of dispensing
a covered part D drug—
‘‘(A) is enrolled in a prescription drug plan or an MA–
PD plan;
‘‘(B) is not enrolled in a qualified retiree prescription
drug plan; and
‘‘(C) has incurred costs, as determined in accordance
with section 1860D–2(b)(4)(C), for covered part D drugs
in the year that exceed the annual deductible specified
in section 1860D–2(b)(1).
‘‘(2) APPLICABLE DRUG.—The term ‘applicable drug’, with
respect to an applicable beneficiary—
‘‘(A) means a covered part D drug—
‘‘(i) approved under a new drug application under
section 505(c) of the Federal Food, Drug, and Cosmetic
Act or, in the case of a biologic product, licensed under
section 351 of the Public Health Service Act; and
‘‘(ii)(I) if the PDP sponsor of the prescription drug
plan or the MA organization offering the MA–PD plan
uses a formulary, which is on the formulary of the
prescription drug plan or MA–PD plan that the
applicable beneficiary is enrolled in;
‘‘(II) if the PDP sponsor of the prescription drug
plan or the MA organization offering the MA–PD plan
does not use a formulary, for which benefits are avail-
able under the prescription drug plan or MA–PD plan
that the applicable beneficiary is enrolled in; or
‘‘(III) is provided through an exception or appeal;
and
‘‘(B) does not include a selected drug (as referred to
under section 1192(c)) during a price applicability period
(as defined in section 1191(b)(2)) with respect to such drug.
‘‘(3) APPLICABLE NUMBER OF CALENDAR DAYS.—The term
‘applicable number of calendar days’ means—
‘‘(A) with respect to claims for reimbursement sub-
mitted electronically, 14 days; and
‘‘(B) with respect to claims for reimbursement sub-
mitted otherwise, 30 days.
‘‘(4) DISCOUNTED PRICE.—
‘‘(A) IN GENERAL.—The term ‘discounted price’ means,
subject to subparagraphs (B) and (C), with respect to an
applicable drug of a manufacturer dispensed during a year
to an applicable beneficiary—
‘‘(i) who has not incurred costs, as determined
in accordance with section 1860D–2(b)(4)(C), for cov-
ered part D drugs in the year that are equal to or
exceed the annual out-of-pocket threshold specified in
section 1860D–2(b)(4)(B)(i) for the year, 90 percent of
the negotiated price of such drug; and
H. R. 5376—67
‘‘(ii) who has incurred such costs, as so determined,
in the year that are equal to or exceed such threshold
for the year, 80 percent of the negotiated price of
such drug.
‘‘(B) PHASE-IN FOR CERTAIN DRUGS DISPENSED TO LIS
BENEFICIARIES.—
‘‘(i) IN GENERAL.—In the case of an applicable drug
of a specified manufacturer (as defined in clause (ii))
that is marketed as of the date of enactment of this
subparagraph and dispensed for an applicable bene-
ficiary who is a subsidy eligible individual (as defined
in section 1860D–14(a)(3)), the term ‘discounted price’
means the specified LIS percent (as defined in clause
(iii)) of the negotiated price of the applicable drug
of the manufacturer.
‘‘(ii) SPECIFIED MANUFACTURER.—
‘‘(I) IN GENERAL.—In this subparagraph, sub-
ject to subclause (II), the term ‘specified manufac-
turer’ means a manufacturer of an applicable drug
for which, in 2021—
‘‘(aa) the manufacturer had a coverage gap
discount agreement under section 1860D–14A;
‘‘(bb) the total expenditures for all of the
specified drugs of the manufacturer covered
by such agreement or agreements for such
year and covered under this part during such
year represented less than 1.0 percent of the
total expenditures under this part for all cov-
ered Part D drugs during such year; and
‘‘(cc) the total expenditures for all of the
specified drugs of the manufacturer that are
single source drugs and biological products for
which payment may be made under part B
during such year represented less than 1.0
percent of the total expenditures under part
B for all drugs or biological products for which
payment may be made under such part during
such year.
‘‘(II) SPECIFIED DRUGS.—
‘‘(aa) IN GENERAL.—For purposes of this
clause, the term ‘specified drug’ means, with
respect to a specified manufacturer, for 2021,
an applicable drug that is produced, prepared,
propagated, compounded, converted, or proc-
essed by the manufacturer.
‘‘(bb) AGGREGATION RULE.—All persons
treated as a single employer under subsection
(a) or (b) of section 52 of the Internal Revenue
Code of 1986 shall be treated as one manufac-
turer for purposes of this subparagraph. For
purposes of making a determination pursuant
to the previous sentence, an agreement under
this section shall require that a manufacturer
provide and attest to such information as
specified by the Secretary as necessary.
‘‘(III) LIMITATION.—The term ‘specified manu-
facturer’ shall not include a manufacturer
H. R. 5376—68
described in subclause (I) if such manufacturer
is acquired after 2021 by another manufacturer
that is not a specified manufacturer, effective at
the beginning of the plan year immediately fol-
lowing such acquisition or, in the case of an
acquisition before 2025, effective January 1, 2025.
‘‘(iii) SPECIFIED LIS PERCENT.—In this subpara-
graph, the ‘specified LIS percent’ means, with respect
to a year—
‘‘(I) for an applicable drug dispensed for an
applicable beneficiary described in clause (i) who
has not incurred costs, as determined in accord-
ance with section 1860D–2(b)(4)(C), for covered
part D drugs in the year that are equal to or
exceed the annual out-of-pocket threshold specified
in section 1860D–2(b)(4)(B)(i) for the year—
‘‘(aa) for 2025, 99 percent;
‘‘(bb) for 2026, 98 percent;
‘‘(cc) for 2027, 95 percent;
‘‘(dd) for 2028, 92 percent; and
‘‘(ee) for 2029 and each subsequent year,
90 percent; and
‘‘(II) for an applicable drug dispensed for an
applicable beneficiary described in clause (i) who
has incurred costs, as determined in accordance
with section 1860D–2(b)(4)(C), for covered part D
drugs in the year that are equal to or exceed
the annual out-of-pocket threshold specified in sec-
tion 1860D–2(b)(4)(B)(i) for the year—
‘‘(aa) for 2025, 99 percent;
‘‘(bb) for 2026, 98 percent;
‘‘(cc) for 2027, 95 percent;
‘‘(dd) for 2028, 92 percent;
‘‘(ee) for 2029, 90 percent;
‘‘(ff) for 2030, 85 percent; and
‘‘(gg) for 2031 and each subsequent year,
80 percent.
‘‘(C) PHASE-IN FOR SPECIFIED SMALL MANUFACTURERS.—
‘‘(i) IN GENERAL.—In the case of an applicable drug
of a specified small manufacturer (as defined in clause
(ii)) that is marketed as of the date of enactment
of this subparagraph and dispensed for an applicable
beneficiary, the term ‘discounted price’ means the
specified small manufacturer percent (as defined in
clause (iii)) of the negotiated price of the applicable
drug of the manufacturer.
‘‘(ii) SPECIFIED SMALL MANUFACTURER.—
‘‘(I) IN GENERAL.—In this subparagraph, sub-
ject to subclause (III), the term ‘specified small
manufacturer’ means a manufacturer of an
applicable drug for which, in 2021—
‘‘(aa) the manufacturer is a specified
manufacturer (as defined in subparagraph
(B)(ii)); and
H. R. 5376—69
‘‘(bb) the total expenditures under part
D for any one of the specified small manufac-
turer drugs of the manufacturer that are cov-
ered by the agreement or agreements under
section 1860D–14A of such manufacturer for
such year and covered under this part during
such year are equal to or more than 80 percent
of the total expenditures under this part for
all specified small manufacturer drugs of the
manufacturer that are covered by such agree-
ment or agreements for such year and covered
under this part during such year.
‘‘(II) SPECIFIED SMALL MANUFACTURER
DRUGS.—
‘‘(aa) IN GENERAL.—For purposes of this
clause, the term ‘specified small manufacturer
drugs’ means, with respect to a specified small
manufacturer, for 2021, an applicable drug
that is produced, prepared, propagated, com-
pounded, converted, or processed by the manu-
facturer.
‘‘(bb) AGGREGATION RULE.—All persons
treated as a single employer under subsection
(a) or (b) of section 52 of the Internal Revenue
Code of 1986 shall be treated as one manufac-
turer for purposes of this subparagraph. For
purposes of making a determination pursuant
to the previous sentence, an agreement under
this section shall require that a manufacturer
provide and attest to such information as
specified by the Secretary as necessary.
‘‘(III) LIMITATION.—The term ‘specified small
manufacturer’ shall not include a manufacturer
described in subclause (I) if such manufacturer
is acquired after 2021 by another manufacturer
that is not a specified small manufacturer, effective
at the beginning of the plan year immediately
following such acquisition or, in the case of an
acquisition before 2025, effective January 1, 2025.
‘‘(iii) SPECIFIED SMALL MANUFACTURER PERCENT.—
In this subparagraph, the term ‘specified small manu-
facturer percent’ means, with respect to a year—
‘‘(I) for an applicable drug dispensed for an
applicable beneficiary who has not incurred costs,
as determined in accordance with section 1860D–
2(b)(4)(C), for covered part D drugs in the year
that are equal to or exceed the annual out-of-
pocket threshold specified in section 1860D–
2(b)(4)(B)(i) for the year—
‘‘(aa) for 2025, 99 percent;
‘‘(bb) for 2026, 98 percent;
‘‘(cc) for 2027, 95 percent;
‘‘(dd) for 2028, 92 percent; and
‘‘(ee) for 2029 and each subsequent year,
90 percent; and
‘‘(II) for an applicable drug dispensed for an
applicable beneficiary who has incurred costs, as
H. R. 5376—70
determined in accordance with section 1860D–
2(b)(4)(C), for covered part D drugs in the year
that are equal to or exceed the annual out-of-
pocket threshold specified in section 1860D–
2(b)(4)(B)(i) for the year—
‘‘(aa) for 2025, 99 percent;
‘‘(bb) for 2026, 98 percent;
‘‘(cc) for 2027, 95 percent;
‘‘(dd) for 2028, 92 percent;
‘‘(ee) for 2029, 90 percent;
‘‘(ff) for 2030, 85 percent; and
‘‘(gg) for 2031 and each subsequent year,
80 percent.
‘‘(D) TOTAL EXPENDITURES.—For purposes of this para-
graph, the term ‘total expenditures’ includes, in the case
of expenditures with respect to part D, the total gross
covered prescription drug costs as defined in section
1860D–15(b)(3). The term ‘total expenditures’ excludes, in
the case of expenditures with respect to part B, expendi-
tures for a drug or biological that are bundled or packaged
into the payment for another service.
‘‘(E) SPECIAL CASE FOR CERTAIN CLAIMS.—
‘‘(i) CLAIMS SPANNING DEDUCTIBLE.—In the case
where the entire amount of the negotiated price of
an individual claim for an applicable drug with respect
to an applicable beneficiary does not fall above the
annual deductible specified in section 1860D–2(b)(1)
for the year, the manufacturer of the applicable drug
shall provide the discounted price under this section
on only the portion of the negotiated price of the
applicable drug that falls above such annual deduct-
ible.
‘‘(ii) CLAIMS SPANNING OUT-OF-POCKET
THRESHOLD.—In the case where the entire amount of
the negotiated price of an individual claim for an
applicable drug with respect to an applicable bene-
ficiary does not fall entirely below or entirely above
the annual out-of-pocket threshold specified in section
1860D–2(b)(4)(B)(i) for the year, the manufacturer of
the applicable drug shall provide the discounted price—
‘‘(I) in accordance with subparagraph (A)(i) on
the portion of the negotiated price of the applicable
drug that falls below such threshold; and
‘‘(II) in accordance with subparagraph (A)(ii)
on the portion of such price of such drug that
falls at or above such threshold.
‘‘(5) MANUFACTURER.—The term ‘manufacturer’ means any
entity which is engaged in the production, preparation, propaga-
tion, compounding, conversion, or processing of prescription
drug products, either directly or indirectly by extraction from
substances of natural origin, or independently by means of
chemical synthesis, or by a combination of extraction and chem-
ical synthesis. Such term does not include a wholesale dis-
tributor of drugs or a retail pharmacy licensed under State
law.
‘‘(6) NEGOTIATED PRICE.—The term ‘negotiated price’ has
the meaning given such term for purposes of section 1860D–
H. R. 5376—71
2(d)(1)(B), and, with respect to an applicable drug, such nego-
tiated price shall include any dispensing fee and, if applicable,
any vaccine administration fee for the applicable drug.
‘‘(7) QUALIFIED RETIREE PRESCRIPTION DRUG PLAN.—The
term ‘qualified retiree prescription drug plan’ has the meaning
given such term in section 1860D–22(a)(2).
‘‘SEC. 1860D–14D. SELECTED DRUG SUBSIDY PROGRAM.
‘‘With respect to covered part D drugs that would be applicable
drugs (as defined in section 1860D–14C(g)(2)) but for the application
of subparagraph (B) of such section, the Secretary shall provide
a process whereby, in the case of an applicable beneficiary (as
defined in section 1860D–14C(g)(1)) who, with respect to a year,
is enrolled in a prescription drug plan or is enrolled in an MA–
PD plan, has not incurred costs that are equal to or exceed the
annual out-of-pocket threshold specified in section 1860D–
2(b)(4)(B)(i), and is dispensed such a drug, the Secretary (periodi-
cally and on a timely basis) provides the PDP sponsor or the
MA organization offering the plan, a subsidy with respect to such
drug that is equal to 10 percent of the negotiated price (as defined
in section 1860D–14C(g)(6)) of such drug.’’.
(2) SUNSET OF MEDICARE COVERAGE GAP DISCOUNT PRO-
GRAM.—Section 1860D–14A of the Social Security Act (42 U.S.C.
1395w–114a) is amended—
(A) in subsection (a), in the first sentence, by striking
‘‘The Secretary’’ and inserting ‘‘Subject to subsection (h),
the Secretary’’; and
(B) by adding at the end the following new subsection:
‘‘(h) SUNSET OF PROGRAM.—
‘‘(1) IN GENERAL.—The program shall not apply with respect
to applicable drugs dispensed on or after January 1, 2025,
and, subject to paragraph (2), agreements under this section
shall be terminated as of such date.
‘‘(2) CONTINUED APPLICATION FOR APPLICABLE DRUGS DIS-
PENSED PRIOR TO SUNSET.—The provisions of this section
(including all responsibilities and duties) shall continue to apply
on and after January 1, 2025, with respect to applicable drugs
dispensed prior to such date.’’.
(3) SELECTED DRUG SUBSIDY PAYMENTS FROM MEDICARE
PRESCRIPTION DRUG ACCOUNT.—Section 1860D–16(b)(1) of the
Social Security Act (42 U.S.C. 1395w–116(b)(1)) is amended—
(A) in subparagraph (C), by striking ‘‘and’’ at the end;
(B) in subparagraph (D), by striking the period at
the end and inserting ‘‘; and’’; and
(C) by adding at the end the following new subpara-
graph:
‘‘(E) payments under section 1860D–14D (relating to
selected drug subsidy payments).’’.
(d) MEDICARE PART D PREMIUM STABILIZATION.—
(1) 2024 THROUGH 2029.—Section 1860D–13 of the Social
Security Act (42 U.S.C. 1395w–113) is amended—
(A) in subsection (a)—
(i) in paragraph (1)(A), by inserting ‘‘or (8) (as
applicable)’’ after ‘‘paragraph (2)’’;
(ii) in paragraph (2), in the matter preceding
subparagraph (A), by striking ‘‘The base’’ and inserting
‘‘Subject to paragraph (8), the base’’;
H. R. 5376—72
(iii) in paragraph (7)—
(I) in subparagraph (B)(ii), by inserting ‘‘or
(8) (as applicable)’’ after ‘‘paragraph (2)’’; and
(II) in subparagraph (E)(i), by inserting ‘‘or
(8) (as applicable)’’ after ‘‘paragraph (2)’’; and
(iv) by adding at the end the following new para-
graph:
‘‘(8) PREMIUM STABILIZATION.—
‘‘(A) IN GENERAL.—The base beneficiary premium
under this paragraph for a prescription drug plan for a
month in 2024 through 2029 shall be computed as follows:
‘‘(i) 2024.—The base beneficiary premium for a
month in 2024 shall be equal to the lesser of—
‘‘(I) the base beneficiary premium computed
under paragraph (2) for a month in 2023 increased
by 6 percent; or
‘‘(II) the base beneficiary premium computed
under paragraph (2) for a month in 2024 that
would have applied if this paragraph had not been
enacted.
‘‘(ii) 2025.—The base beneficiary premium for a
month in 2025 shall be equal to the lesser of—
‘‘(I) the base beneficiary premium computed
under clause (i) for a month in 2024 increased
by 6 percent; or
‘‘(II) the base beneficiary premium computed
under paragraph (2) for a month in 2025 that
would have applied if this paragraph had not been
enacted.
‘‘(iii) 2026.—The base beneficiary premium for a
month in 2026 shall be equal to the lesser of—
‘‘(I) the base beneficiary premium computed
under clause (ii) for a month in 2025 increased
by 6 percent; or
‘‘(II) the base beneficiary premium computed
under paragraph (2) for a month in 2026 that
would have applied if this paragraph had not been
enacted.
‘‘(iv) 2027.—The base beneficiary premium for a
month in 2027 shall be equal to the lesser of—
‘‘(I) the base beneficiary premium computed
under clause (iii) for a month in 2026 increased
by 6 percent; or
‘‘(II) the base beneficiary premium computed
under paragraph (2) for a month in 2027 that
would have applied if this paragraph had not been
enacted.
‘‘(v) 2028.—The base beneficiary premium for a
month in 2028 shall be equal to the lesser of—
‘‘(I) the base beneficiary premium computed
under clause (iv) for a month in 2027 increased
by 6 percent; or
‘‘(II) the base beneficiary premium computed
under paragraph (2) for a month in 2028 that
would have applied if this paragraph had not been
enacted.
H. R. 5376—73
‘‘(vi) 2029.—The base beneficiary premium for a
month in 2029 shall be equal to the lesser of—
‘‘(I) the base beneficiary premium computed
under clause (v) for a month in 2028 increased
by 6 percent; or
‘‘(II) the base beneficiary premium computed
under paragraph (2) for a month in 2029 that
would have applied if this paragraph had not been
enacted.
‘‘(B) CLARIFICATION REGARDING 2030 AND SUBSEQUENT
YEARS.—The base beneficiary premium for a month in 2030
or a subsequent year shall be computed under paragraph
(2) without regard to this paragraph.’’; and
(B) in subsection (b)(3)(A)(ii), by striking ‘‘subsection
(a)(2)’’ and inserting ‘‘paragraph (2) or (8) of subsection
(a) (as applicable)’’.
(2) ADJUSTMENT TO BENEFICIARY PREMIUM PERCENTAGE FOR
2030 AND SUBSEQUENT YEARS.—Section 1860D–13(a) of the
Social Security Act (42 U.S.C. 1395w–113(a)), as amended by
paragraph (1), is amended—
(A) in paragraph (3)(A), by inserting ‘‘(or, for 2030
and each subsequent year, the percent specified under para-
graph (9))’’ after ‘‘25.5 percent’’; and
(B) by adding at the end the following new paragraph:
‘‘(9) PERCENT SPECIFIED.—
‘‘(A) IN GENERAL.—Subject to subparagraph (B), for
purposes of paragraph (3)(A), the percent specified under
this paragraph for 2030 and each subsequent year is the
percent that the Secretary determines is necessary to
ensure that the base beneficiary premium computed under
paragraph (2) for a month in 2030 is equal to the lesser
of—
‘‘(i) the base beneficiary premium computed under
paragraph (8)(A)(vi) for a month in 2029 increased
by 6 percent; or
‘‘(ii) the base beneficiary premium computed under
paragraph (2) for a month in 2030 that would have
applied if this paragraph had not been enacted.
‘‘(B) FLOOR.—The percent specified under subpara-
graph (A) may not be less than 20 percent.’’.
(3) CONFORMING AMENDMENTS.—
(A) Section 1854(b)(2)(B) of the Social Security Act
42 U.S.C. 1395w–24(b)(2)(B)) is amended by striking ‘‘sec-
tion 1860D–13(a)(2)’’ and inserting ‘‘paragraph (2) or (8)
(as applicable) of section 1860D–13(a)’’.
(B) Section 1860D–11(g)(6) of the Social Security Act
(42 U.S.C. 1395w–111(g)(6)) is amended by inserting ‘‘(or,
for 2030 and each subsequent year, the percent specified
under section 1860D–13(a)(9))’’ after ‘‘25.5 percent’’.
(C) Section 1860D–13(a)(7)(B)(i) of the Social Security
Act (42 U.S.C. 1395w–113(a)(7)(B)(i)) is amended—
(i) in subclause (I), by inserting ‘‘(or, for 2030 and
each subsequent year, the percent specified under para-
graph (9))’’ after ‘‘25.5 percent’’; and
(ii) in subclause (II), by inserting ‘‘(or, for 2030
and each subsequent year, the percent specified under
paragraph (9))’’ after ‘‘25.5 percent’’.
H. R. 5376—74
(D) Section 1860D–15(a) of the Social Security Act
(42 U.S.C. 1395w–115(a)) is amended—
(i) in the matter preceding paragraph (1), by
inserting ‘‘(or, for each of 2024 through 2029, the per-
cent applicable as a result of the application of section
1860D–13(a)(8), or, for 2030 and each subsequent year,
100 percent minus the percent specified under section
1860D–13(a)(9))’’ after ‘‘74.5 percent’’; and
(ii) in paragraph (1)(B), by striking ‘‘paragraph
(2) of section 1860D–13(a)’’ and inserting ‘‘paragraph
(2) or (8) of section 1860D–13(a) (as applicable)’’.
(e) CONFORMING AMENDMENTS.—
(1) Section 1860D–2 of the Social Security Act (42 U.S.C.
1395w–102) is amended—
(A) in subsection (a)(2)(A)(i)(I), by striking ‘‘, or an
increase in the initial’’ and inserting ‘‘or, for a year pre-
ceding 2025, an increase in the initial’’;
(B) in subsection (c)(1)(C)—
(i) in the subparagraph heading, by striking ‘‘AT
INITIAL COVERAGE LIMIT’’; and
(ii) by inserting ‘‘for a year preceding 2025 or the
annual out-of-pocket threshold specified in subsection
(b)(4)(B) for the year for 2025 and each subsequent
year’’ after ‘‘subsection (b)(3) for the year’’ each place
it appears; and
(C) in subsection (d)(1)(A), by striking ‘‘or an initial’’
and inserting ‘‘or, for a year preceding 2025, an initial’’.
(2) Section 1860D–4(a)(4)(B)(i) of the Social Security Act
(42 U.S.C. 1395w–104(a)(4)(B)(i)) is amended by striking ‘‘the
initial’’ and inserting ‘‘for a year preceding 2025, the initial’’.
(3) Section 1860D–14(a) of the Social Security Act (42
U.S.C. 1395w–114(a)) is amended—
(A) in paragraph (1)—
(i) in subparagraph (C), by striking ‘‘The continu-
ation’’ and inserting ‘‘For a year preceding 2025, the
continuation’’;
(ii) in subparagraph (D)(iii), by striking ‘‘1860D–
2(b)(4)(A)(i)(I)’’ and inserting ‘‘1860D–
2(b)(4)(A)(i)(I)(aa)’’; and
(iii) in subparagraph (E), by striking ‘‘The elimi-
nation’’ and inserting ‘‘For a year preceding 2024, the
elimination’’; and
(B) in paragraph (2)(E), by striking ‘‘1860D–
2(b)(4)(A)(i)(I)’’ and inserting ‘‘1860D–2(b)(4)(A)(i)(I)(aa)’’.
(4) Section 1860D–21(d)(7) of the Social Security Act (42
U.S.C. 1395w–131(d)(7)) is amended by striking ‘‘section
1860D–2(b)(4)(B)(i)’’ and inserting ‘‘section 1860D–2(b)(4)(C)(i)’’.
(5) Section 1860D–22(a)(2)(A) of the Social Security Act
(42 U.S.C. 1395w–132(a)(2)(A)) is amended—
(A) by striking ‘‘the value of any discount’’ and
inserting the following: ‘‘the value of—
‘‘(i) for years prior to 2025, any discount’’;
(B) in clause (i), as inserted by subparagraph (A) of
this paragraph, by striking the period at the end and
inserting ‘‘; and’’; and
(C) by adding at the end the following new clause:
H. R. 5376—75
‘‘(ii) for 2025 and each subsequent year, any dis-
count provided pursuant to section 1860D–14C.’’.
(6) Section 1860D–41(a)(6) of the Social Security Act (42
U.S.C. 1395w–151(a)(6)) is amended—
(A) by inserting ‘‘for a year before 2025’’ after ‘‘1860D–
2(b)(3)’’; and
(B) by inserting ‘‘for such year’’ before the period.
(7) Section 1860D–43 of the Social Security Act (42 U.S.C.
1395w–153) is amended—
(A) in subsection (a)—
(i) by striking paragraph (1) and inserting the
following:
‘‘(1) participate in—
‘‘(A) for 2011 through 2024, the Medicare coverage
gap discount program under section 1860D–14A; and
‘‘(B) for 2025 and each subsequent year, the manufac-
turer discount program under section 1860D–14C;’’;
(ii) by striking paragraph (2) and inserting the
following:
‘‘(2) have entered into and have in effect—
‘‘(A) for 2011 through 2024, an agreement described
in subsection (b) of section 1860D–14A with the Secretary;
and
‘‘(B) for 2025 and each subsequent year, an agreement
described in subsection (b) of section 1860D–14C with the
Secretary; and’’; and
(iii) in paragraph (3), by striking ‘‘such section’’
and inserting ‘‘section 1860D–14A’’; and
(B) by striking subsection (b) and inserting the fol-
lowing:
‘‘(b) EFFECTIVE DATE.—Paragraphs (1)(A), (2)(A), and (3) of
subsection (a) shall apply to covered part D drugs dispensed under
this part on or after January 1, 2011, and before January 1, 2025,
and paragraphs (1)(B) and (2)(B) of such subsection shall apply
to covered part D drugs dispensed under this part on or after
January 1, 2025.’’.
(8) Section 1927 of the Social Security Act (42 U.S.C. 1396r–
8) is amended—
(A) in subsection (c)(1)(C)(i)(VI), by inserting before
the period at the end the following: ‘‘or under the manufac-
turer discount program under section 1860D–14C’’; and
(B) in subsection (k)(1)(B)(i)(V), by inserting before the
period at the end the following: ‘‘or under section 1860D–
14C’’.
(f) IMPLEMENTATION FOR 2024 THROUGH 2026.—The Secretary
shall implement this section, including the amendments made by
this section, for 2024, 2025, and 2026 by program instruction or
other forms of program guidance.
(g) FUNDING.—In addition to amounts otherwise available, there
are appropriated to the Centers for Medicare & Medicaid Services,
out of any money in the Treasury not otherwise appropriated,
$341,000,000 for fiscal year 2022, including $20,000,000 and
$65,000,000 to carry out the provisions of, including the amend-
ments made by, this section in fiscal years 2022 and 2023, respec-
tively, and $32,000,000 to carry out the provisions of, including
the amendments made by, this section in each of fiscal years 2024
through 2031, to remain available until expended.
H. R. 5376—76
SEC. 11202. MAXIMUM MONTHLY CAP ON COST-SHARING PAYMENTS
UNDER PRESCRIPTION DRUG PLANS AND MA–PD PLANS.
(a) IN GENERAL.—Section 1860D–2(b) of the Social Security
Act (42 U.S.C. 1395w–102(b)) is amended—
(1) in paragraph (2)—
(A) in subparagraph (A), by striking ‘‘and (D)’’ and
inserting ‘‘, (D), and (E)’’; and
(B) by adding at the end the following new subpara-
graph:
‘‘(E) MAXIMUM MONTHLY CAP ON COST-SHARING PAY-
MENTS.—
‘‘(i) IN GENERAL.—For plan years beginning on or
after January 1, 2025, each PDP sponsor offering a
prescription drug plan and each MA organization
offering an MA–PD plan shall provide to any enrollee
of such plan, including an enrollee who is a subsidy
eligible individual (as defined in paragraph (3) of sec-
tion 1860D–14(a)), the option to elect with respect to
a plan year to pay cost-sharing under the plan in
monthly amounts that are capped in accordance with
this subparagraph.
‘‘(ii) DETERMINATION OF MAXIMUM MONTHLY CAP.—
For each month in the plan year for which an enrollee
in a prescription drug plan or an MA–PD plan has
made an election pursuant to clause (i), the PDP
sponsor or MA organization shall determine a max-
imum monthly cap (as defined in clause (iv)) for such
enrollee.
‘‘(iii) BENEFICIARY MONTHLY PAYMENTS.—With
respect to an enrollee who has made an election pursu-
ant to clause (i), for each month described in clause
(ii), the PDP sponsor or MA organization shall bill
such enrollee an amount (not to exceed the maximum
monthly cap) for the out-of-pocket costs of such enrollee
in such month.
‘‘(iv) MAXIMUM MONTHLY CAP DEFINED.—In this
subparagraph, the term ‘maximum monthly cap’
means, with respect to an enrollee—
‘‘(I) for the first month for which the enrollee
has made an election pursuant to clause (i), an
amount determined by calculating—
‘‘(aa) the annual out-of-pocket threshold
specified in paragraph (4)(B) minus the
incurred costs of the enrollee as described in
paragraph (4)(C); divided by
‘‘(bb) the number of months remaining in
the plan year; and
‘‘(II) for a subsequent month, an amount deter-
mined by calculating—
‘‘(aa) the sum of any remaining out-of-
pocket costs owed by the enrollee from a pre-
vious month that have not yet been billed
to the enrollee and any additional out-of-
pocket costs incurred by the enrollee; divided
by
‘‘(bb) the number of months remaining in
the plan year.
H. R. 5376—77
‘‘(v) ADDITIONAL REQUIREMENTS.—The following
requirements shall apply with respect to the option
to make an election pursuant to clause (i) under this
subparagraph:
‘‘(I) SECRETARIAL RESPONSIBILITIES.—The Sec-
retary shall provide information to part D eligible
individuals on the option to make such election
through educational materials, including through
the notices provided under section 1804(a).
‘‘(II) TIMING OF ELECTION.—An enrollee in a
prescription drug plan or an MA–PD plan may
make such an election—
‘‘(aa) prior to the beginning of the plan
year; or
‘‘(bb) in any month during the plan year.
‘‘(III) PDP SPONSOR AND MA ORGANIZATION
RESPONSIBILITIES.—Each PDP sponsor offering a
prescription drug plan or MA organization offering
an MA–PD plan—
‘‘(aa) may not limit the option for an
enrollee to make such an election to certain
covered part D drugs;
‘‘(bb) shall, prior to the plan year, notify
prospective enrollees of the option to make
such an election in promotional materials;
‘‘(cc) shall include information on such
option in enrollee educational materials;
‘‘(dd) shall have in place a mechanism to
notify a pharmacy during the plan year when
an enrollee incurs out-of-pocket costs with
respect to covered part D drugs that make
it likely the enrollee may benefit from making
such an election;
‘‘(ee) shall provide that a pharmacy, after
receiving a notification described in item (dd)
with respect to an enrollee, informs the
enrollee of such notification;
‘‘(ff) shall ensure that such an election
by an enrollee has no effect on the amount
paid to pharmacies (or the timing of such pay-
ments) with respect to covered part D drugs
dispensed to the enrollee; and
‘‘(gg) shall have in place a financial rec-
onciliation process to correct inaccuracies in
payments made by an enrollee under this
subparagraph with respect to covered part D
drugs during the plan year.
‘‘(IV) FAILURE TO PAY AMOUNT BILLED.—If an
enrollee fails to pay the amount billed for a month
as required under this subparagraph—
‘‘(aa) the election of the enrollee pursuant
to clause (i) shall be terminated and the
enrollee shall pay the cost-sharing otherwise
applicable for any covered part D drugs subse-
quently dispensed to the enrollee up to the
annual out-of-pocket threshold specified in
paragraph (4)(B); and
H. R. 5376—78
‘‘(bb) the PDP sponsor or MA organization
may preclude the enrollee from making an
election pursuant to clause (i) in a subsequent
plan year.
‘‘(V) CLARIFICATION REGARDING PAST DUE
AMOUNTS.—Nothing in this subparagraph shall be
construed as prohibiting a PDP sponsor or an MA
organization from billing an enrollee for an amount
owed under this subparagraph.
‘‘(VI) TREATMENT OF UNSETTLED BALANCES.—
Any unsettled balances with respect to amounts
owed under this subparagraph shall be treated
as plan losses and the Secretary shall not be liable
for any such balances outside of those assumed
as losses estimated in plan bids.’’; and
(2) in paragraph (4)—
(A) in subparagraph (C), by striking ‘‘subparagraph
(E)’’ and inserting ‘‘subparagraph (E) or subparagraph (F)’’;
and
(B) by adding at the end the following new subpara-
graph:
‘‘(F) INCLUSION OF COSTS PAID UNDER MAXIMUM
MONTHLY CAP OPTION.—In applying subparagraph (A), with
respect to an enrollee who has made an election pursuant
to clause (i) of paragraph (2)(E), costs shall be treated
as incurred if such costs are paid by a PDP sponsor or
an MA organization under the option provided under such
paragraph.’’.
(b) APPLICATION TO ALTERNATIVE PRESCRIPTION DRUG COV-
ERAGE.—Section 1860D–2(c) of the Social Security Act (42 U.S.C.
1395w–102(c)) is amended by adding at the end the following new
paragraph:
‘‘(4) SAME MAXIMUM MONTHLY CAP ON COST-SHARING.—The
maximum monthly cap on cost-sharing payments shall apply
to coverage with respect to an enrollee who has made an
election pursuant to clause (i) of subsection (b)(2)(E) under
the option provided under such subsection.’’.
(c) IMPLEMENTATION FOR 2025.—The Secretary shall implement
this section, including the amendments made by this section, for
2025 by program instruction or other forms of program guidance.
(d) FUNDING.—In addition to amounts otherwise available,
there are appropriated to the Centers for Medicare & Medicaid
Services, out of any money in the Treasury not otherwise appro-
priated, $10,000,000 for fiscal year 2023, to remain available until
expended, to carry out the provisions of, including the amendments
made by, this section.
H. R. 5376—79
PART 4—CONTINUED DELAY OF IMPLEMENTA-
TION OF PRESCRIPTION DRUG REBATE
RULE
SEC. 11301. EXTENSION OF MORATORIUM ON IMPLEMENTATION OF
RULE RELATING TO ELIMINATING THE ANTI-KICKBACK
STATUTE SAFE HARBOR PROTECTION FOR PRESCRIP-
TION DRUG REBATES.
The Secretary of Health and Human Services shall not, prior
to January 1, 2032, implement, administer, or enforce the provisions
of the final rule published by the Office of the Inspector General
of the Department of Health and Human Services on November
30, 2020, and titled ‘‘Fraud and Abuse; Removal of Safe Harbor
Protection for Rebates Involving Prescription Pharmaceuticals and
Creation of New Safe Harbor Protection for Certain Point-of-Sale
Reductions in Price on Prescription Pharmaceuticals and Certain
Pharmacy Benefit Manager Service Fees’’ (85 Fed. Reg. 76666).
PART 5—MISCELLANEOUS
SEC. 11401. COVERAGE OF ADULT VACCINES RECOMMENDED BY THE
ADVISORY COMMITTEE ON IMMUNIZATION PRACTICES
UNDER MEDICARE PART D.
(a) ENSURING TREATMENT OF COST-SHARING AND DEDUCTIBLE
IS CONSISTENT WITH TREATMENT OF VACCINES UNDER MEDICARE
PART B.—Section 1860D–2 of the Social Security Act (42 U.S.C.
1395w–102), as amended by sections 11201 and 11202, is
amended—
(1) in subsection (b)—
(A) in paragraph (1)(A), by striking ‘‘The coverage’’
and inserting ‘‘Subject to paragraph (8), the coverage’’;
(B) in paragraph (2)—
(i) in subparagraph (A), by inserting ‘‘and para-
graph (8)’’ after ‘‘and (E)’’;
(ii) in subparagraph (C)(i), in the matter preceding
subclause (I), by striking ‘‘paragraph (4)’’ and inserting
‘‘paragraphs (4) and (8)’’; and
(iii) in subparagraph (D)(i), in the matter preceding
subclause (I), by striking ‘‘paragraph (4)’’ and inserting
‘‘paragraphs (4) and (8)’’;
(C) in paragraph (3)(A), in the matter preceding clause
(i), by striking ‘‘and (4)’’ and inserting ‘‘(4), and (8)’’;
(D) in paragraph (4)(A)(i), by striking ‘‘The coverage’’
and inserting ‘‘Subject to paragraph (8), the coverage’’;
and
(E) by adding at the end the following new paragraph:
‘‘(8) TREATMENT OF COST-SHARING FOR ADULT VACCINES REC-
OMMENDED BY THE ADVISORY COMMITTEE ON IMMUNIZATION
PRACTICES CONSISTENT WITH TREATMENT OF VACCINES UNDER
PART B.—
‘‘(A) IN GENERAL.—For plan years beginning on or after
January 1, 2023, with respect to an adult vaccine rec-
ommended by the Advisory Committee on Immunization
Practices (as defined in subparagraph (B))—
‘‘(i) the deductible under paragraph (1) shall not
apply; and
H. R. 5376—80
‘‘(ii) there shall be no coinsurance or other cost-
sharing under this part with respect to such vaccine.
‘‘(B) ADULT VACCINES RECOMMENDED BY THE ADVISORY
COMMITTEE ON IMMUNIZATION PRACTICES.—For purposes of
this paragraph, the term ‘adult vaccine recommended by
the Advisory Committee on Immunization Practices’ means
a covered part D drug that is a vaccine licensed under
section 351 of the Public Health Service Act for use by
adult populations and administered in accordance with rec-
ommendations of the Advisory Committee on Immunization
Practices of the Centers for Disease Control and Preven-
tion.’’; and
(2) in subsection (c), by adding at the end the following
new paragraph:
‘‘(5) TREATMENT OF COST-SHARING FOR ADULT VACCINES REC-
OMMENDED BY THE ADVISORY COMMITTEE ON IMMUNIZATION
PRACTICES.—The coverage is in accordance with subsection
(b)(8).’’.
(b) CONFORMING AMENDMENTS TO COST-SHARING FOR LOW-
INCOME INDIVIDUALS.—Section 1860D–14(a) of the Social Security
Act (42 U.S.C. 1395w–114(a)), as amended by section 11201, is
amended—
(1) in paragraph (1)(D), in each of clauses (ii) and (iii),
by striking ‘‘In the case’’ and inserting ‘‘Subject to paragraph
(6), in the case’’;
(2) in paragraph (2)—
(A) in subparagraph (B), by striking ‘‘A reduction’’ and
inserting ‘‘Subject to section 1860D–2(b)(8), a reduction’’;
(B) in subparagraph (D), by striking ‘‘The substitution’’
and inserting ‘‘Subject to paragraph (6), the substitution’’;
and
(C) in subparagraph (E), by striking ‘‘subsection (c)’’
and inserting ‘‘paragraph (6) of this subsection and sub-
section (c)’’; and
(3) by adding at the end the following new paragraph:
‘‘(6) NO APPLICATION OF COST-SHARING OR DEDUCTIBLE FOR
ADULT VACCINES RECOMMENDED BY THE ADVISORY COMMITTEE
ON IMMUNIZATION PRACTICES.—For plan years beginning on
or after January 1, 2023, with respect to an adult vaccine
recommended by the Advisory Committee on Immunization
Practices (as defined in section 1860D–2(b)(8)(B))—
‘‘(A) the deductible under section 1860D–2(b)(1) shall
not apply; and
‘‘(B) there shall be no cost-sharing under this section
with respect to such vaccine.’’.
(c) TEMPORARY RETROSPECTIVE SUBSIDY.—
(1) IN GENERAL.—Section 1860D–15 of the Social Security
Act (42 U.S.C. 1395w–115) is amended by adding at the end
the following new subsection:
‘‘(h) TEMPORARY RETROSPECTIVE SUBSIDY FOR REDUCTION IN
COST-SHARING AND DEDUCTIBLE FOR ADULT VACCINES REC-
OMMENDED BY THE ADVISORY COMMITTEE ON IMMUNIZATION PRAC-
TICES DURING 2023.—
‘‘(1) IN GENERAL.—In addition to amounts otherwise pay-
able under this section to a PDP sponsor of a prescription
drug plan or an MA organization offering an MA–PD plan,
for plan year 2023, the Secretary shall provide the PDP sponsor
H. R. 5376—81
or MA organization offering the plan subsidies in an amount
equal to the aggregate reduction in cost-sharing and deductible
by reason of the application of section 1860D–2(b)(8) for individ-
uals under the plan during the year.
‘‘(2) TIMING.—The Secretary shall provide a subsidy under
paragraph (1), as applicable, not later than 18 months following
the end of the applicable plan year.’’.
(2) TREATMENT AS INCURRED COSTS.—Section 1860D–
2(b)(4)(C)(iii)(I) of the Social Security Act (42 U.S.C. 1395w–
102(b)(4)(C)(iii)(I)), as amended by section 11201(a)(3)(C), is
amended—
(A) in item (cc), by striking ‘‘or’’ at the end; and
(B) by adding at the end the following new item:
‘‘(dd) under section 1860D–15(h); or’’.
(d) RULE OF CONSTRUCTION.—Nothing in this section shall be
construed as limiting coverage under part D of title XVIII of the
Social Security Act for vaccines that are not recommended by the
Advisory Committee on Immunization Practices.
(e) IMPLEMENTATION FOR 2023 THROUGH 2025.—The Secretary
shall implement this section, including the amendments made by
this section, for 2023, 2024, and 2025, by program instruction
or other forms of program guidance.
SEC. 11402. PAYMENT FOR BIOSIMILAR BIOLOGICAL PRODUCTS
DURING INITIAL PERIOD.
Section 1847A(c)(4) of the Social Security Act (42 U.S.C. 1395w–
3a(c)(4)) is amended—
(1) in each of subparagraphs (A) and (B), by redesignating
clauses (i) and (ii) as subclauses (I) and (II), respectively, and
moving such subclauses 2 ems to the right;
(2) by redesignating subparagraphs (A) and (B) as clauses
(i) and (ii) and moving such clauses 2 ems to the right;
(3) by striking ‘‘UNAVAILABLE.—In the case’’ and inserting
‘‘UNAVAILABLE.—
‘‘(A) IN GENERAL.—Subject to subparagraph (B), in the
case’’; and
(4) by adding at the end the following new subparagraph:
‘‘(B) LIMITATION ON PAYMENT AMOUNT FOR BIOSIMILAR
BIOLOGICAL PRODUCTS DURING INITIAL PERIOD.—In the case
of a biosimilar biological product furnished on or after
July 1, 2024, during the initial period described in subpara-
graph (A) with respect to the biosimilar biological product,
the amount payable under this section for the biosimilar
biological product is the lesser of the following:
‘‘(i) The amount determined under clause (ii) of
such subparagraph for the biosimilar biological
product.
‘‘(ii) The amount determined under subsection
(b)(1)(B) for the reference biological product.’’.
SEC. 11403. TEMPORARY INCREASE IN MEDICARE PART B PAYMENT
FOR CERTAIN BIOSIMILAR BIOLOGICAL PRODUCTS.
Section 1847A(b)(8) of the Social Security Act (42 U.S.C. 1395w–
3a(b)(8)) is amended—
(1) by redesignating subparagraphs (A) and (B) as clauses
(i) and (ii), respectively, and moving the margin of each such
redesignated clause 2 ems to the right;
H. R. 5376—82
(2) by striking ‘‘PRODUCT.—The amount’’ and inserting the
following: ‘‘PRODUCT.—
‘‘(A) IN GENERAL.—Subject to subparagraph (B), the
amount’’; and
(3) by adding at the end the following new subparagraph:
‘‘(B) TEMPORARY PAYMENT INCREASE.—
‘‘(i) IN GENERAL.—In the case of a qualifying bio-
similar biological product that is furnished during the
applicable 5-year period for such product, the amount
specified in this paragraph for such product with
respect to such period is the sum determined under
subparagraph (A), except that clause (ii) of such
subparagraph shall be applied by substituting ‘8 per-
cent’ for ‘6 percent’.
‘‘(ii) APPLICABLE 5-YEAR PERIOD.—For purposes of
clause (i), the applicable 5-year period for a qualifying
biosimilar biological product is—
‘‘(I) in the case of such a product for which
payment was made under this paragraph as of
September 30, 2022, the 5-year period beginning
on October 1, 2022; and
‘‘(II) in the case of such a product for which
payment is first made under this paragraph during
a calendar quarter during the period beginning
October 1, 2022, and ending December 31, 2027,
the 5-year period beginning on the first day of
such calendar quarter during which such payment
is first made.
‘‘(iii) QUALIFYING BIOSIMILAR BIOLOGICAL PRODUCT
DEFINED.—For purposes of this subparagraph, the term
‘qualifying biosimilar biological product’ means a bio-
similar biological product described in paragraph (1)(C)
with respect to which—
‘‘(I) in the case of a product described in clause
(ii)(I), the average sales price under paragraph
(8)(A)(i) for a calendar quarter during the 5-year
period described in such clause is not more than
the average sales price under paragraph (4)(A)
for such quarter for the reference biological
product; and
‘‘(II) in the case of a product described in
clause (ii)(II), the average sales price under para-
graph (8)(A)(i) for a calendar quarter during the
5-year period described in such clause is not more
than the average sales price under paragraph
(4)(A) for such quarter for the reference biological
product.’’.
SEC. 11404. EXPANDING ELIGIBILITY FOR LOW-INCOME SUBSIDIES
UNDER PART D OF THE MEDICARE PROGRAM.
Section 1860D–14(a) of the Social Security Act (42 U.S.C.
1395w–114(a)), as amended by sections 11201 and 11401, is
amended—
(1) in the subsection heading, by striking ‘‘INDIVIDUALS’’
and all that follows through ‘‘LINE’’ and inserting ‘‘CERTAIN
INDIVIDUALS’’;
(2) in paragraph (1)—
H. R. 5376—83
(A) by striking the paragraph heading and inserting
‘‘INDIVIDUALS WITH CERTAIN LOW INCOMES’’; and
(B) in the matter preceding subparagraph (A)—
(i) by inserting ‘‘(or, with respect to a plan year
beginning on or after January 1, 2024, 150 percent)’’
after ‘‘135 percent’’; and
(ii) by inserting ‘‘(or, with respect to a plan year
beginning on or after January 1, 2024, paragraph
(3)(E))’’ after ‘‘the resources requirement described in
paragraph (3)(D)’’; and
(3) in paragraph (2)—
(A) by striking the paragraph heading and inserting
‘‘OTHER LOW-INCOME INDIVIDUALS’’; and
(B) in the matter preceding subparagraph (A), by
striking ‘‘In the case of a subsidy’’ and inserting ‘‘With
respect to a plan year beginning before January 1, 2024,
in the case of a subsidy’’.
SEC. 11405. IMPROVING ACCESS TO ADULT VACCINES UNDER MED-
ICAID AND CHIP.
(a) MEDICAID.—
(1) REQUIRING COVERAGE OF ADULT VACCINATIONS.—
(A) IN GENERAL.—Section 1902(a)(10)(A) of the Social
Security Act (42 U.S.C. 1396a(a)(10)(A)) is amended in
the matter preceding clause (i) by inserting ‘‘(13)(B),’’ after
‘‘(5),’’.
(B) MEDICALLY NEEDY.—Section 1902(a)(10)(C)(iv) of
such Act (42 U.S.C. 1396a(a)(10)(C)(iv)) is amended by
inserting ‘‘, (13)(B),’’ after ‘‘(5)’’.
(2) NO COST SHARING FOR VACCINATIONS.—
(A) GENERAL COST-SHARING LIMITATIONS.—Section
1916 of the Social Security Act (42 U.S.C. 1396o) is
amended—
(i) in subsection (a)(2)—
(I) in subparagraph (G), by inserting a comma
after ‘‘State plan’’;
(II) in subparagraph (H), by striking ‘‘; or’’
and inserting a comma;
(III) in subparagraph (I), by striking ‘‘; and’’
and inserting ‘‘, or’’; and
(IV) by adding at the end the following new
subparagraph:
‘‘(J) vaccines described in section 1905(a)(13)(B) and
the administration of such vaccines; and’’; and
(ii) in subsection (b)(2)—
(I) in subparagraph (G), by inserting a comma
after ‘‘State plan’’;
(II) in subparagraph (H), by striking ‘‘; or’’
and inserting a comma;
(III) in subparagraph (I), by striking ‘‘; and’’
and inserting ‘‘, or’’; and
(IV) by adding at the end the following new
subparagraph:
‘‘(J) vaccines described in section 1905(a)(13)(B) and
the administration of such vaccines; and’’.
(B) APPLICATION TO ALTERNATIVE COST SHARING.—Sec-
tion 1916A(b)(3)(B) of the Social Security Act (42 U.S.C.
H. R. 5376—84
1396o–1(b)(3)(B)) is amended by adding at the end the
following new clause:
‘‘(xiv) Vaccines described in section 1905(a)(13)(B)
and the administration of such vaccines.’’.
(3) INCREASED FMAP FOR ADULT VACCINES AND THEIR
ADMINISTRATION.—Section 1905(b) of the Social Security Act
(42 U.S.C. 1396d(b)) is amended—
(A) by striking ‘‘and (5)’’ and inserting ‘‘(5)’’;
(B) by striking ‘‘services and vaccines described in sub-
paragraphs (A) and (B) of subsection (a)(13), and prohibits
cost-sharing for such services and vaccines’’ and inserting
‘‘services described in subsection (a)(13)(A), and prohibits
cost-sharing for such services’’;
(C) by striking ‘‘medical assistance for such services
and vaccines’’ and inserting ‘‘medical assistance for such
services’’; and
(D) by inserting ‘‘, and (6) during the first 8 fiscal
quarters beginning on or after the effective date of this
clause, in the case of a State which, as of the date of
enactment of the Act titled ‘An Act to provide for reconcili-
ation pursuant to title II of S. Con. Res. 14’, provides
medical assistance for vaccines described in subsection
(a)(13)(B) and their administration and prohibits cost-
sharing for such vaccines, the Federal medical assistance
percentage, as determined under this subsection and sub-
section (y), shall be increased by 1 percentage point with
respect to medical assistance for such vaccines and their
administration’’ before the first period.
(b) CHIP.—
(1) REQUIRING COVERAGE OF ADULT VACCINATIONS.—Section
2103(c) of the Social Security Act (42 U.S.C. 1397cc(c)) is
amended by adding at the end the following paragraph:
‘‘(12) REQUIRED COVERAGE OF APPROVED, RECOMMENDED
ADULT VACCINES AND THEIR ADMINISTRATION.—Regardless of
the type of coverage elected by a State under subsection (a),
if the State child health plan or a waiver of such plan provides
child health assistance or pregnancy-related assistance (as
defined in section 2112) to an individual who is 19 years of
age or older, such assistance shall include coverage of vaccines
described in section 1905(a)(13)(B) and their administration.’’.
(2) NO COST-SHARING FOR VACCINATIONS.—Section
2103(e)(2) of such Act (42 U.S.C. 1397cc(e)(2)) is amended by
inserting ‘‘vaccines described in subsection (c)(12) (and the
administration of such vaccines),’’ after ‘‘in vitro diagnostic
products described in subsection (c)(10) (and administration
of such products),’’.
(c) EFFECTIVE DATE.—The amendments made by this section
take effect on the 1st day of the 1st fiscal quarter that begins
on or after the date that is 1 year after the date of enactment
of this Act and shall apply to expenditures made under a State
plan or waiver of such plan under title XIX of the Social Security
Act (42 U.S.C. 1396 through 1396w–6) or under a State child
health plan or waiver of such plan under title XXI of such Act
(42 U.S.C. 1397aa through 1397mm) on or after such effective
date.
H. R. 5376—85
SEC. 11406. APPROPRIATE COST-SHARING FOR COVERED INSULIN
PRODUCTS UNDER MEDICARE PART D.
(a) IN GENERAL.—Section 1860D–2 of the Social Security Act
(42 U.S.C. 1395w–102), as amended by sections 11201, 11202, and
11401, is amended—
(1) in subsection (b)—
(A) in paragraph (1)(A), by striking ‘‘paragraph (8)’’
and inserting ‘‘paragraphs (8) and (9)’’;
(B) in paragraph (2)—
(i) in subparagraph (A), by striking ‘‘paragraph
(8)’’ and inserting ‘‘paragraphs (8) and (9)’’;
(ii) in subparagraph (C)(i), in the matter preceding
subclause (I), by striking ‘‘and (8)’’ and inserting ‘‘,
(8), and (9)’’; and
(iii) in subparagraph (D)(i), in the matter preceding
subclause (I), by striking ‘‘and (8)’’ and inserting ‘‘,
(8), and (9)’’;
(C) in paragraph (3)(A), in the matter preceding clause
(i), by striking ‘‘and (8)’’ and inserting ‘‘(8), and (9)’’;
(D) in paragraph (4)(A)(i), by striking ‘‘paragraph (8)’’
and inserting ‘‘paragraphs (8) and (9)’’; and
(E) by adding at the end the following new paragraph:
‘‘(9) TREATMENT OF COST-SHARING FOR COVERED INSULIN
PRODUCTS.—
‘‘(A) NO APPLICATION OF DEDUCTIBLE.—For plan year
2023 and subsequent plan years, the deductible under para-
graph (1) shall not apply with respect to any covered insulin
product.
‘‘(B) APPLICATION OF COST-SHARING.—
‘‘(i) PLAN YEARS 2023 AND 2024.—For plan years
2023 and 2024, the coverage provides benefits for any
covered insulin product, regardless of whether an indi-
vidual has reached the initial coverage limit under
paragraph (3) or the out-of-pocket threshold under
paragraph (4), with cost-sharing for a month’s supply
that does not exceed the applicable copayment amount.
‘‘(ii) PLAN YEAR 2025 AND SUBSEQUENT PLAN
YEARS.—For a plan year beginning on or after January
1, 2025, the coverage provides benefits for any covered
insulin product, prior to an individual reaching the
out-of-pocket threshold under paragraph (4), with cost-
sharing for a month’s supply that does not exceed
the applicable copayment amount.
‘‘(C) COVERED INSULIN PRODUCT.—In this paragraph,
the term ‘covered insulin product’ means an insulin product
that is a covered part D drug covered under the prescription
drug plan or MA–PD plan that is approved under section
505 of the Federal Food, Drug, and Cosmetic Act or licensed
under section 351 of the Public Health Service Act and
marketed pursuant to such approval or licensure, including
any covered insulin product that has been deemed to be
licensed under section 351 of the Public Health Service
Act pursuant to section 7002(e)(4) of the Biologics Price
Competition and Innovation Act of 2009 and marketed
pursuant to such section.
‘‘(D) APPLICABLE COPAYMENT AMOUNT.—In this para-
graph, the term ‘applicable copayment amount’ means, with
H. R. 5376—86
respect to a covered insulin product under a prescription
drug plan or an MA–PD plan dispensed—
‘‘(i) during plan years 2023, 2024, and 2025, $35;
and
‘‘(ii) during plan year 2026 and each subsequent
plan year, the lesser of—
‘‘(I) $35;
‘‘(II) an amount equal to 25 percent of the
maximum fair price established for the covered
insulin product in accordance with part E of title
XI; or
‘‘(III) an amount equal to 25 percent of the
negotiated price of the covered insulin product
under the prescription drug plan or MA–PD plan.
‘‘(E) SPECIAL RULE FOR FIRST 3 MONTHS OF 2023.—With
respect to a month’s supply of a covered insulin product
dispensed during the period beginning on January 1, 2023,
and ending on March 31, 2023, a PDP sponsor offering
a prescription drug plan or an MA organization offering
an MA–PD plan shall reimburse an enrollee within 30
days for any cost-sharing paid by such enrollee that exceeds
the cost-sharing applied by the prescription drug plan or
MA–PD plan under subparagraph (B)(i) at the point-of-
sale for such month’s supply.’’; and
(2) in subsection (c), by adding at the end the following
new paragraph:
‘‘(6) TREATMENT OF COST-SHARING FOR COVERED INSULIN
PRODUCTS.—The coverage is provided in accordance with sub-
section (b)(9).’’.
(b) CONFORMING AMENDMENTS TO COST-SHARING FOR LOW-
INCOME INDIVIDUALS.—Section 1860D–14(a) of the Social Security
Act (42 U.S.C. 1395w–114(a)), as amended by sections 11201, 11401,
and 11404, is amended—
(1) in paragraph (1)—
(A) in subparagraph (D)(iii), by adding at the end the
following new sentence: ‘‘For plan year 2023 and subse-
quent plan years, the copayment amount applicable under
the preceding sentence to a month’s supply of a covered
insulin product (as defined in section 1860D–2(b)(9)(C))
dispensed to the individual may not exceed the applicable
copayment amount for the product under the prescription
drug plan or MA–PD plan in which the individual is
enrolled.’’; and
(B) in subparagraph (E), by inserting the following
before the period at the end: ‘‘or under section 1860D–
2(b)(9) in the case of a covered insulin product (as defined
in subparagraph (C) of such section)’’; and
(2) in paragraph (2)—
(A) in subparagraph (B), by striking ‘‘section 1860D–
2(b)(8)’’ and inserting ‘‘paragraphs (8) and (9) of section
1860D–2(b)’’;
(B) in subparagraph (D), by adding at the end the
following new sentence: ‘‘For plan year 2023, the amount
of the coinsurance applicable under the preceding sentence
to a month’s supply of a covered insulin product (as defined
in section 1860D–2(b)(9)(C)) dispensed to the individual
may not exceed the applicable copayment amount for the
H. R. 5376—87
product under the prescription drug plan or MA–PD plan
in which the individual is enrolled.’’; and
(C) in subparagraph (E), by adding at the end the
following new sentence: ‘‘For plan year 2023, the amount
of the copayment or coinsurance applicable under the pre-
ceding sentence to a month’s supply of a covered insulin
product (as defined in section 1860D–2(b)(9)(C)) dispensed
to the individual may not exceed the applicable copayment
amount for the product under the prescription drug plan
or MA–PD plan in which the individual is enrolled.’’.
(c) TEMPORARY RETROSPECTIVE SUBSIDY.—Section 1860D–15(h)
of the Social Security Act (42 U.S.C. 1395w–115(h)), as added
by section 11401(c), is amended—
(1) in the subsection heading, by inserting ‘‘AND INSULIN’’
after ‘‘PRACTICES’’; and
(2) in paragraph (1), by striking ‘‘section 1860D–2(b)(8)’’
and inserting ‘‘paragraph (8) or (9) of section 1860D–2(b)’’.
(d) IMPLEMENTATION FOR 2023 THROUGH 2025.—The Secretary
shall implement this section for plan years 2023, 2024, and 2025
by program instruction or other forms of program guidance.
(e) FUNDING.—In addition to amounts otherwise available, there
is appropriated to the Centers for Medicare & Medicaid Services,
out of any money in the Treasury not otherwise appropriated,
$1,500,000 for fiscal year 2022, to remain available until expended,
to carry out the provisions of, including the amendments made
by, this section.
SEC. 11407. LIMITATION ON MONTHLY COINSURANCE AND ADJUST-
MENTS TO SUPPLIER PAYMENT UNDER MEDICARE PART
B FOR INSULIN FURNISHED THROUGH DURABLE MED-
ICAL EQUIPMENT.
(a) WAIVER OF DEDUCTIBLE.—The first sentence of section
1833(b) of the Social Security Act (42 U.S.C. 1395l(b)) is amended—
(1) by striking ‘‘and (12)’’ and inserting ‘‘(12)’’; and
(2) by inserting before the period the following: ‘‘, and
(13) such deductible shall not apply with respect to insulin
furnished on or after July 1, 2023, through an item of durable
medical equipment covered under section 1861(n).’’.
(b) COINSURANCE.—
(1) IN GENERAL.—Section 1833(a)(1)(S) of the Social Secu-
rity Act (42 U.S.C. 1395l(a)(1)(S)) is amended—
(A) by inserting ‘‘(i) except as provided in clause (ii),’’
after ‘‘(S)’’; and
(B) by inserting after ‘‘or 1847B),’’ the following: ‘‘and
(ii) with respect to insulin furnished on or after July 1,
2023, through an item of durable medical equipment cov-
ered under section 1861(n), the amounts paid shall be,
subject to the fourth sentence of this subsection, 80 percent
of the payment amount established under section 1847A
(or section 1847B, if applicable) for such insulin,’’.
(2) ADJUSTMENT TO SUPPLIER PAYMENTS; LIMITATION ON
MONTHLY COINSURANCE.—Section 1833(a) of the Social Security
Act (42 U.S.C. 1395l(a)) is amended, in the flush matter at
the end, by adding at the end the following new sentence:
‘‘The Secretary shall make such adjustments as may be nec-
essary to the amounts paid as specified under paragraph
(1)(S)(ii) for insulin furnished on or after July 1, 2023, through
H. R. 5376—88
an item of durable medical equipment covered under section
1861(n), such that the amount of coinsurance payable by an
individual enrolled under this part for a month’s supply of
such insulin does not exceed $35.’’.
(c) IMPLEMENTATION.—The Secretary of Health and Human
Services shall implement this section for 2023 by program instruc-
tion or other forms of program guidance.
SEC. 11408. SAFE HARBOR FOR ABSENCE OF DEDUCTIBLE FOR
INSULIN.
(a) IN GENERAL.—Paragraph (2) of section 223(c) of the Internal
Revenue Code of 1986 is amended by adding at the end the following
new subparagraph:
‘‘(G) SAFE HARBOR FOR ABSENCE OF DEDUCTIBLE FOR
CERTAIN INSULIN PRODUCTS.—
‘‘(i) IN GENERAL.—A plan shall not fail to be treated
as a high deductible health plan by reason of failing
to have a deductible for selected insulin products.
‘‘(ii) SELECTED INSULIN PRODUCTS.—For purposes
of this subparagraph—
‘‘(I) IN GENERAL.—The term ‘selected insulin
products’ means any dosage form (such as vial,
pump, or inhaler dosage forms) of any different
type (such as rapid-acting, short-acting, inter-
mediate-acting, long-acting, ultra long-acting, and
premixed) of insulin.
‘‘(II) INSULIN.—The term ‘insulin’ means
insulin that is licensed under subsection (a) or
(k) of section 351 of the Public Health Service
Act (42 U.S.C. 262) and continues to be marketed
under such section, including any insulin product
that has been deemed to be licensed under section
351(a) of such Act pursuant to section 7002(e)(4)
of the Biologics Price Competition and Innovation
Act of 2009 (Public Law 111–148) and continues
to be marketed pursuant to such licensure.’’.
(b) EFFECTIVE DATE.—The amendment made by this section
shall apply to plan years beginning after December 31, 2022.
Subtitle C—Affordable Care Act Subsidies
SEC. 12001. IMPROVE AFFORDABILITY AND REDUCE PREMIUM COSTS
OF HEALTH INSURANCE FOR CONSUMERS.
(a) IN GENERAL.—Clause (iii) of section 36B(b)(3)(A) of the
Internal Revenue Code of 1986 is amended—
(1) by striking ‘‘in 2021 or 2022’’ and inserting ‘‘after
December 31, 2020, and before January 1, 2026’’, and
(2) by striking ‘‘2021 AND 2022’’ in the heading and inserting
‘‘2021 THROUGH 2025’’.
(b) EXTENSION THROUGH 2025 OF RULE TO ALLOW CREDIT TO
TAXPAYERS WHOSE HOUSEHOLD INCOME EXCEEDS 400 PERCENT OF
THE POVERTY LINE.—Section 36B(c)(1)(E) of the Internal Revenue
Code of 1986 is amended—
(1) by striking ‘‘in 2021 or 2022’’ and inserting ‘‘after
December 31, 2020, and before January 1, 2026’’, and
H. R. 5376—89
(2) by striking ‘‘2021 AND 2022’’ in the heading and inserting
‘‘2021 THROUGH 2025’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall apply to taxable years beginning after December 31, 2022.
Subtitle D—Energy Security
SEC. 13001. AMENDMENT OF 1986 CODE.
Except as otherwise expressly provided, whenever in this sub-
title an amendment or repeal is expressed in terms of an amend-
ment to, or repeal of, a section or other provision, the reference
shall be considered to be made to a section or other provision
of the Internal Revenue Code of 1986.
PART 1—CLEAN ELECTRICITY AND REDUCING
CARBON EMISSIONS
SEC. 13101. EXTENSION AND MODIFICATION OF CREDIT FOR ELEC-
TRICITY PRODUCED FROM CERTAIN RENEWABLE
RESOURCES.
(a) IN GENERAL.—The following provisions of section 45(d) are
each amended by striking ‘‘January 1, 2022’’ each place it appears
and inserting ‘‘January 1, 2025’’:
(1) Paragraph (2)(A).
(2) Paragraph (3)(A).
(3) Paragraph (6).
(4) Paragraph (7).
(5) Paragraph (9).
(6) Paragraph (11)(B).
(b) BASE CREDIT AMOUNT.—Section 45 is amended—
(1) in subsection (a)(1), by striking ‘‘1.5 cents’’ and inserting
‘‘0.3 cents’’, and
(2) in subsection (b)(2), by striking ‘‘1.5 cent’’ and inserting
‘‘0.3 cent’’.
(c) APPLICATION OF EXTENSION TO GEOTHERMAL AND SOLAR.—
Section 45(d)(4) is amended by striking ‘‘and which’’ and all that
follows through ‘‘January 1, 2022’’ and inserting ‘‘and the construc-
tion of which begins before January 1, 2025’’.
(d) EXTENSION OF ELECTION TO TREAT QUALIFIED FACILITIES
AS ENERGY PROPERTY.—Section 48(a)(5)(C)(ii) is amended by
striking ‘‘January 1, 2022’’ and inserting ‘‘January 1, 2025’’.
(e) APPLICATION OF EXTENSION TO WIND FACILITIES.—
(1) IN GENERAL.—Section 45(d)(1) is amended by striking
‘‘January 1, 2022’’ and inserting ‘‘January 1, 2025’’.
(2) APPLICATION OF PHASEOUT PERCENTAGE.—
(A) RENEWABLE ELECTRICITY PRODUCTION CREDIT.—
Section 45(b)(5) is amended by inserting ‘‘which is placed
in service before January 1, 2022’’ after ‘‘using wind to
produce electricity’’.
(B) ENERGY CREDIT.—Section 48(a)(5)(E) is amended
by inserting ‘‘placed in service before January 1, 2022,
and’’ before ‘‘treated as energy property’’.
(3) QUALIFIED OFFSHORE WIND FACILITIES UNDER ENERGY
CREDIT.—Section 48(a)(5)(F)(i) is amended by striking ‘‘offshore
wind facility’’ and all that follows and inserting the following:
‘‘offshore wind facility, subparagraph (E) shall not apply.’’.
H. R. 5376—90
(f) WAGE AND APPRENTICESHIP REQUIREMENTS.—Section 45(b)
is amended by adding at the end the following new paragraphs:
‘‘(6) INCREASED CREDIT AMOUNT FOR QUALIFIED FACILI-
TIES.—
‘‘(A) IN GENERAL.—In the case of any qualified facility
which satisfies the requirements of subparagraph (B), the
amount of the credit determined under subsection (a)
(determined after the application of paragraphs (1) through
(5) and without regard to this paragraph) shall be equal
to such amount multiplied by 5.
‘‘(B) QUALIFIED FACILITY REQUIREMENTS.—A qualified
facility meets the requirements of this subparagraph if
it is one of the following:
‘‘(i) A facility with a maximum net output of less
than 1 megawatt (as measured in alternating current).
‘‘(ii) A facility the construction of which begins
prior to the date that is 60 days after the Secretary
publishes guidance with respect to the requirements
of paragraphs (7)(A) and (8).
‘‘(iii) A facility which satisfies the requirements
of paragraphs (7)(A) and (8).
‘‘(7) PREVAILING WAGE REQUIREMENTS.—
‘‘(A) IN GENERAL.—The requirements described in this
subparagraph with respect to any qualified facility are
that the taxpayer shall ensure that any laborers and
mechanics employed by the taxpayer or any contractor
or subcontractor in—
‘‘(i) the construction of such facility, and
‘‘(ii) with respect to any taxable year, for any por-
tion of such taxable year which is within the period
described in subsection (a)(2)(A)(ii), the alteration or
repair of such facility,
shall be paid wages at rates not less than the prevailing
rates for construction, alteration, or repair of a similar
character in the locality in which such facility is located
as most recently determined by the Secretary of Labor,
in accordance with subchapter IV of chapter 31 of title
40, United States Code. For purposes of determining an
increased credit amount under paragraph (6)(A) for a tax-
able year, the requirement under clause (ii) is applied
to such taxable year in which the alteration or repair
of the qualified facility occurs.’’
‘‘(B) CORRECTION AND PENALTY RELATED TO FAILURE
TO SATISFY WAGE REQUIREMENTS.—
‘‘(i) IN GENERAL.—In the case of any taxpayer
which fails to satisfy the requirement under subpara-
graph (A) with respect to the construction of any quali-
fied facility or with respect to the alteration or repair
of a facility in any year during the period described
in subparagraph (A)(ii), such taxpayer shall be deemed
to have satisfied such requirement under such subpara-
graph with respect to such facility for any year if,
with respect to any laborer or mechanic who was paid
wages at a rate below the rate described in such
subparagraph for any period during such year, such
taxpayer—
H. R. 5376—91
‘‘(I) makes payment to such laborer or
mechanic in an amount equal to the sum of—
‘‘(aa) an amount equal to the difference
between—
‘‘(AA) the amount of wages paid to
such laborer or mechanic during such
period, and
‘‘(BB) the amount of wages required
to be paid to such laborer or mechanic
pursuant to such subparagraph during
such period, plus
‘‘(bb) interest on the amount determined
under item (aa) at the underpayment rate
established under section 6621 (determined by
substituting ‘6 percentage points’ for ‘3
percentage points’ in subsection (a)(2) of such
section) for the period described in such item,
and
‘‘(II) makes payment to the Secretary of a pen-
alty in an amount equal to the product of—
‘‘(aa) $5,000, multiplied by
‘‘(bb) the total number of laborers and
mechanics who were paid wages at a rate
below the rate described in subparagraph (A)
for any period during such year.
‘‘(ii) DEFICIENCY PROCEDURES NOT TO APPLY.—Sub-
chapter B of chapter 63 (relating to deficiency proce-
dures for income, estate, gift, and certain excise taxes)
shall not apply with respect to the assessment or collec-
tion of any penalty imposed by this paragraph.
‘‘(iii) INTENTIONAL DISREGARD.—If the Secretary
determines that any failure described in clause (i) is
due to intentional disregard of the requirements under
subparagraph (A), such clause shall be applied—
‘‘(I) in subclause (I), by substituting ‘three
times the sum’ for ‘the sum’, and
‘‘(II) in subclause (II), by substituting ‘$10,000’
for ‘5,000’ in item (aa) thereof.
‘‘(iv) LIMITATION ON PERIOD FOR PAYMENT.—Pursu-
ant to rules issued by the Secretary, in the case of
a final determination by the Secretary with respect
to any failure by the taxpayer to satisfy the require-
ment under subparagraph (A), subparagraph (B)(i)
shall not apply unless the payments described in sub-
clauses (I) and (II) of such subparagraph are made
by the taxpayer on or before the date which is 180
days after the date of such determination.
‘‘(8) APPRENTICESHIP REQUIREMENTS.—The requirements
described in this paragraph with respect to the construction
of any qualified facility are as follows:
‘‘(A) LABOR HOURS.—
‘‘(i) PERCENTAGE OF TOTAL LABOR HOURS.—Tax-
payers shall ensure that, with respect to the construc-
tion of any qualified facility, not less than the
applicable percentage of the total labor hours of the
construction, alteration, or repair work (including such
work performed by any contractor or subcontractor)
H. R. 5376—92
with respect to such facility shall, subject to subpara-
graph (B), be performed by qualified apprentices.
‘‘(ii) APPLICABLE PERCENTAGE.—For purposes of
clause (i), the applicable percentage shall be—
‘‘(I) in the case of a qualified facility the
construction of which begins before January 1,
2023, 10 percent,
‘‘(II) in the case of a qualified facility the
construction of which begins after December 31,
2022, and before January 1, 2024, 12.5 percent,
and
‘‘(III) in the case of a qualified facility the
construction of which begins after December 31,
2023, 15 percent.
‘‘(B) APPRENTICE TO JOURNEYWORKER RATIO.—The
requirement under subparagraph (A)(i) shall be subject
to any applicable requirements for apprentice-to-
journeyworker ratios of the Department of Labor or the
applicable State apprenticeship agency.
‘‘(C) PARTICIPATION.—Each taxpayer, contractor, or
subcontractor who employs 4 or more individuals to perform
construction, alteration, or repair work with respect to
the construction of a qualified facility shall employ 1 or
more qualified apprentices to perform such work.
‘‘(D) EXCEPTION.—
‘‘(i) IN GENERAL.—A taxpayer shall not be treated
as failing to satisfy the requirements of this paragraph
if such taxpayer—
‘‘(I) satisfies the requirements described in
clause (ii), or
‘‘(II) subject to clause (iii), in the case of any
failure by the taxpayer to satisfy the requirement
under subparagraphs (A) and (C) with respect to
the construction, alteration, or repair work on any
qualified facility to which subclause (I) does not
apply, makes payment to the Secretary of a penalty
in an amount equal to the product of—
‘‘(aa) $50, multiplied by
‘‘(bb) the total labor hours for which the
requirement described in such subparagraph
was not satisfied with respect to the construc-
tion, alteration, or repair work on such quali-
fied facility.
‘‘(ii) GOOD FAITH EFFORT.—For purposes of clause
(i), a taxpayer shall be deemed to have satisfied the
requirements under this paragraph with respect to
a qualified facility if such taxpayer has requested quali-
fied apprentices from a registered apprenticeship pro-
gram, as defined in section 3131(e)(3)(B), and—
‘‘(I) such request has been denied, provided
that such denial is not the result of a refusal
by the taxpayer or any contractors or subcontrac-
tors engaged in the performance of construction,
alteration, or repair work with respect to such
qualified facility to comply with the established
standards and requirements of the registered
apprenticeship program, or
H. R. 5376—93
‘‘(II) the registered apprenticeship program
fails to respond to such request within 5 business
days after the date on which such registered
apprenticeship program received such request.
‘‘(iii) INTENTIONAL DISREGARD.—If the Secretary
determines that any failure described in subclause
(i)(II) is due to intentional disregard of the require-
ments under subparagraphs (A) and (C), subclause
(i)(II) shall be applied by substituting ‘$500’ for ‘$50’
in item (aa) thereof.
‘‘(E) DEFINITIONS.—For purposes of this paragraph—
‘‘(i) LABOR HOURS.—The term ‘labor hours’—
‘‘(I) means the total number of hours devoted
to the performance of construction, alteration, or
repair work by any individual employed by the
taxpayer or by any contractor or subcontractor,
and
‘‘(II) excludes any hours worked by—
‘‘(aa) foremen,
‘‘(bb) superintendents,
‘‘(cc) owners, or
‘‘(dd) persons employed in a bona fide
executive, administrative, or professional
capacity (within the meaning of those terms
in part 541 of title 29, Code of Federal Regula-
tions).
‘‘(ii) QUALIFIED APPRENTICE.—The term ‘qualified
apprentice’ means an individual who is employed by
the taxpayer or by any contractor or subcontractor
and who is participating in a registered apprenticeship
program, as defined in section 3131(e)(3)(B).
‘‘(9) REGULATIONS AND GUIDANCE.—The Secretary shall
issue such regulations or other guidance as the Secretary deter-
mines necessary to carry out the purposes of this subsection,
including regulations or other guidance which provides for
requirements for recordkeeping or information reporting for
purposes of administering the requirements of this subsection.’’.
(g) DOMESTIC CONTENT, PHASEOUT, AND ENERGY COMMU-
NITIES.—Section 45(b), as amended by subsection (f), is amended—
(1) by redesignating paragraph (9) as paragraph (12), and
(2) by inserting after paragraph (8) the following:
‘‘(9) DOMESTIC CONTENT BONUS CREDIT AMOUNT.—
‘‘(A) IN GENERAL.—In the case of any qualified facility
which satisfies the requirement under subparagraph (B)(i),
the amount of the credit determined under subsection (a)
(determined after the application of paragraphs (1) through
(8)) shall be increased by an amount equal to 10 percent
of the amount so determined.
‘‘(B) REQUIREMENT.—
‘‘(i) IN GENERAL.—The requirement described in
this clause is satisfied with respect to any qualified
facility if the taxpayer certifies to the Secretary (at
such time, and in such form and manner, as the Sec-
retary may prescribe) that any steel, iron, or manufac-
tured product which is a component of such facility
(upon completion of construction) was produced in the
H. R. 5376—94
United States (as determined under section 661 of
title 49, Code of Federal Regulations).
‘‘(ii) STEEL AND IRON.—In the case of steel or iron,
clause (i) shall be applied in a manner consistent with
section 661.5 of title 49, Code of Federal Regulations.
‘‘(iii) MANUFACTURED PRODUCT.—For purposes of
clause (i), the manufactured products which are compo-
nents of a qualified facility upon completion of
construction shall be deemed to have been produced
in the United States if not less than the adjusted
percentage (as determined under subparagraph (C))
of the total costs of all such manufactured products
of such facility are attributable to manufactured prod-
ucts (including components) which are mined, pro-
duced, or manufactured in the United States.
‘‘(C) ADJUSTED PERCENTAGE.—
‘‘(i) IN GENERAL.—Subject to subclause (ii), for pur-
poses of subparagraph (B)(iii), the adjusted percentage
shall be 40 percent.
‘‘(ii) OFFSHORE WIND FACILITY.—For purposes of
subparagraph (B)(iii), in the case of a qualified facility
which is an offshore wind facility, the adjusted percent-
age shall be 20 percent.
‘‘(10) PHASEOUT FOR ELECTIVE PAYMENT.—
‘‘(A) IN GENERAL.—In the case of a taxpayer making
an election under section 6417 with respect to a credit
under this section, the amount of such credit shall be
replaced with—
‘‘(i) the value of such credit (determined without
regard to this paragraph), multiplied by
‘‘(ii) the applicable percentage.
‘‘(B) 100 PERCENT APPLICABLE PERCENTAGE FOR CER-
TAIN QUALIFIED FACILITIES.—In the case of any qualified
facility—
‘‘(i) which satisfies the requirements under para-
graph (9)(B), or
‘‘(ii) with a maximum net output of less than 1
megawatt (as measured in alternating current),
the applicable percentage shall be 100 percent.
‘‘(C) PHASED DOMESTIC CONTENT REQUIREMENT.—Sub-
ject to subparagraph (D), in the case of any qualified facility
which is not described in subparagraph (B), the applicable
percentage shall be—
‘‘(i) if construction of such facility began before
January 1, 2024, 100 percent, and
‘‘(ii) if construction of such facility began in cal-
endar year 2024, 90 percent.
‘‘(D) EXCEPTION.—
‘‘(i) IN GENERAL.—For purposes of this paragraph,
the Secretary shall provide exceptions to the require-
ments under this paragraph if—
‘‘(I) the inclusion of steel, iron, or manufac-
tured products which are produced in the United
States increases the overall costs of construction
of qualified facilities by more than 25 percent,
or
H. R. 5376—95
‘‘(II) relevant steel, iron, or manufactured
products are not produced in the United States
in sufficient and reasonably available quantities
or of a satisfactory quality.
‘‘(ii) APPLICABLE PERCENTAGE.—In any case in
which the Secretary provides an exception pursuant
to clause (i), the applicable percentage shall be 100
percent.
‘‘(11) SPECIAL RULE FOR QUALIFIED FACILITY LOCATED IN
ENERGY COMMUNITY.—
‘‘(A) IN GENERAL.—In the case of a qualified facility
which is located in an energy community, the credit deter-
mined under subsection (a) (determined after the applica-
tion of paragraphs (1) through (10), without the application
of paragraph (9)) shall be increased by an amount equal
to 10 percent of the amount so determined.
‘‘(B) ENERGY COMMUNITY.—For purposes of this para-
graph, the term ‘energy community’ means—
‘‘(i) a brownfield site (as defined in subparagraphs
(A), (B), and (D)(ii)(III) of section 101(39) of the Com-
prehensive Environmental Response, Compensation,
and Liability Act of 1980 (42 U.S.C. 9601(39))),
‘‘(ii) a metropolitan statistical area or non-metro-
politan statistical area which—
‘‘(I) has (or, at any time during the period
beginning after December 31, 2009, had) 0.17 per-
cent or greater direct employment or 25 percent
or greater local tax revenues related to the extrac-
tion, processing, transport, or storage of coal, oil,
or natural gas (as determined by the Secretary),
and
‘‘(II) has an unemployment rate at or above
the national average unemployment rate for the
previous year (as determined by the Secretary),
or
‘‘(iii) a census tract—
‘‘(I) in which—
‘‘(aa) after December 31, 1999, a coal mine
has closed, or
‘‘(bb) after December 31, 2009, a coal-fired
electric generating unit has been retired, or
‘‘(II) which is directly adjoining to any census
tract described in subclause (I).’’.
(h) CREDIT REDUCED FOR TAX-EXEMPT BONDS.—Section 45(b)(3)
is amended to read as follows:
‘‘(3) CREDIT REDUCED FOR TAX-EXEMPT BONDS.—The amount
of the credit determined under subsection (a) with respect to
any facility for any taxable year (determined after the applica-
tion of paragraphs (1) and (2)) shall be reduced by the amount
which is the product of the amount so determined for such
year and the lesser of 15 percent or a fraction—
‘‘(A) the numerator of which is the sum, for the taxable
year and all prior taxable years, of proceeds of an issue
of any obligations the interest on which is exempt from
tax under section 103 and which is used to provide
financing for the qualified facility, and
H. R. 5376—96
‘‘(B) the denominator of which is the aggregate amount
of additions to the capital account for the qualified facility
for the taxable year and all prior taxable years.
The amounts under the preceding sentence for any taxable
year shall be determined as of the close of the taxable year.’’.
(i) ROUNDING ADJUSTMENT.—
(1) IN GENERAL.—Section 45(b)(2) is amended by striking
the second sentence and inserting the following: ‘‘If the 0.3
cent amount as increased under the preceding sentence is not
a multiple of 0.05 cent, such amount shall be rounded to the
nearest multiple of 0.05 cent. In any other case, if an amount
as increased under this paragraph is not a multiple of 0.1
cent, such amount shall be rounded to the nearest multiple
of 0.1 cent.’’.
(2) CONFORMING AMENDMENT.—Section 45(b)(4)(A) is
amended by striking ‘‘last sentence’’ and inserting ‘‘last two
sentences’’.
(j) HYDROPOWER.—
(1) ELIMINATION OF CREDIT RATE REDUCTION FOR QUALIFIED
HYDROELECTRIC PRODUCTION AND MARINE AND HYDROKINETIC
RENEWABLE ENERGY.—Section 45(b)(4)(A), as amended by the
preceding provisions of this section, is amended by striking
‘‘(7), (9), or (11)’’ and inserting ‘‘or (7)’’.
(2) MARINE AND HYDROKINETIC RENEWABLE ENERGY.—Sec-
tion 45 is amended—
(A) in subsection (c)(10)(A)—
(i) in clause (iii), by striking ‘‘or’’,
(ii) in clause (iv), by striking the period at the
end and inserting ‘‘, or’’ and
(iii) by adding at the end the following:
‘‘(v) pressurized water used in a pipeline (or similar
man-made water conveyance) which is operated—
‘‘(I) for the distribution of water for agricul-
tural, municipal, or industrial consumption, and
‘‘(II) not primarily for the generation of elec-
tricity.’’, and
(B) in subsection (d)(11)(A), by striking ‘‘150’’ and
inserting ‘‘25’’.
(k) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided in paragraphs (2)
and (3), the amendments made by this section shall apply
to facilities placed in service after December 31, 2021.
(2) CREDIT REDUCED FOR TAX-EXEMPT BONDS.—The amend-
ment made by subsection (h) shall apply to facilities the
construction of which begins after the date of enactment of
this Act.
(3) DOMESTIC CONTENT, PHASEOUT, ENERGY COMMUNITIES,
AND HYDROPOWER.—The amendments made by subsections (g)
and (j) shall apply to facilities placed in service after December
31, 2022.
SEC. 13102. EXTENSION AND MODIFICATION OF ENERGY CREDIT.
(a) EXTENSION OF CREDIT.—The following provisions of section
48 are each amended by striking ‘‘January 1, 2024’’ each place
it appears and inserting ‘‘January 1, 2025’’:
(1) Subsection (a)(2)(A)(i)(II).
(2) Subsection (a)(3)(A)(ii).
H. R. 5376—97
(3) Subsection (c)(1)(D).
(4) Subsection (c)(2)(D).
(5) Subsection (c)(3)(A)(iv).
(6) Subsection (c)(4)(C).
(7) Subsection (c)(5)(D).
(b) FURTHER EXTENSION FOR CERTAIN ENERGY PROPERTY.—
Section 48(a)(3)(A)(vii) is amended by striking ‘‘January 1, 2024’’
and inserting ‘‘January 1, 2035’’.
(c) PHASEOUT OF CREDIT.—Section 48(a) is amended by striking
paragraphs (6) and (7) and inserting the following new paragraph:
‘‘(6) PHASEOUT FOR CERTAIN ENERGY PROPERTY.—In the
case of any qualified fuel cell property, qualified small wind
property, or energy property described in clause (i) or clause
(ii) of paragraph (3)(A) the construction of which begins after
December 31, 2019, and which is placed in service before
January 1, 2022, the energy percentage determined under para-
graph (2) shall be equal to 26 percent.’’.
(d) BASE ENERGY PERCENTAGE AMOUNT; PHASEOUT OF CERTAIN
ENERGY PROPERTY.—
(1) BASE ENERGY PERCENTAGE AMOUNT.—Section 48(a) is
amended—
(A) in paragraph (2)(A)—
(i) in clause (i), by striking ‘‘30 percent’’ and
inserting ‘‘6 percent’’, and
(ii) in clause (ii), by striking ‘‘10 percent’’ and
inserting ‘‘2 percent’’, and
(B) in paragraph (5)(A)(ii), by striking ‘‘30 percent’’
and inserting ‘‘6 percent’’.
(2) PHASEOUT OF CERTAIN ENERGY PROPERTY.—Section
48(a), as amended by the preceding provisions of this Act,
is amended by adding at the end the following new paragraph:
‘‘(7) PHASEOUT FOR CERTAIN ENERGY PROPERTY.—In the
case of any energy property described in clause (vii) of para-
graph (3)(A), the energy percentage determined under para-
graph (2) shall be equal to—
‘‘(A) in the case of any property the construction of
which begins before January 1, 2033, and which is placed
in service after December 31, 2021, 6 percent,
‘‘(B) in the case of any property the construction of
which begins after December 31, 2032, and before January
1, 2034, 5.2 percent, and
‘‘(C) in the case of any property the construction of
which begins after December 31, 2033, and before January
1, 2035, 4.4 percent.’’.
(e) 6 PERCENT CREDIT FOR GEOTHERMAL.—Section
48(a)(2)(A)(i)(II) is amended by striking ‘‘paragraph (3)(A)(i)’’ and
inserting ‘‘clause (i) or (iii) of paragraph (3)(A)’’.
(f) ENERGY STORAGE TECHNOLOGIES; QUALIFIED BIOGAS PROP-
ERTY; MICROGRID CONTROLLERS; EXTENSION OF OTHER PROPERTY.—
(1) IN GENERAL.—Section 48(a)(3)(A) is amended by striking
‘‘or’’ at the end of clause (vii), and by adding at the end the
following new clauses:
‘‘(ix) energy storage technology,
‘‘(x) qualified biogas property, or
‘‘(xi) microgrid controllers,’’.
H. R. 5376—98
(2) APPLICATION OF 6 PERCENT CREDIT.—Section
48(a)(2)(A)(i) is amended by striking ‘‘and’’ at the end of sub-
clauses (IV) and (V) and adding at the end the following new
subclauses:
‘‘(VI) energy storage technology,
‘‘(VII) qualified biogas property,
‘‘(VIII) microgrid controllers, and
‘‘(IX) energy property described in clauses (v)
and (vii) of paragraph (3)(A), and’’.
(3) DEFINITIONS.—Section 48(c) is amended by adding at
the end the following new paragraphs:
‘‘(6) ENERGY STORAGE TECHNOLOGY.—
‘‘(A) IN GENERAL.—The term ‘energy storage technology’
means—
‘‘(i) property (other than property primarily used
in the transportation of goods or individuals and not
for the production of electricity) which receives, stores,
and delivers energy for conversion to electricity (or,
in the case of hydrogen, which stores energy), and
has a nameplate capacity of not less than 5 kilowatt
hours, and
‘‘(ii) thermal energy storage property.
‘‘(B) MODIFICATIONS OF CERTAIN PROPERTY.—In the
case of any property which either—
‘‘(i) was placed in service before the date of enact-
ment of this section and would be described in subpara-
graph (A)(i), except that such property has a capacity
of less than 5 kilowatt hours and is modified in a
manner that such property (after such modification)
has a nameplate capacity of not less than 5 kilowatt
hours, or
‘‘(ii) is described in subparagraph (A)(i) and is
modified in a manner that such property (after such
modification) has an increase in nameplate capacity
of not less than 5 kilowatt hours,
such property shall be treated as described in subparagraph
(A)(i) except that the basis of any existing property prior
to such modification shall not be taken into account for
purposes of this section. In the case of any property to
which this subparagraph applies, subparagraph (D) shall
be applied by substituting ‘modification’ for ‘construction’.
‘‘(C) THERMAL ENERGY STORAGE PROPERTY.—
‘‘(i) IN GENERAL.—Subject to clause (ii), for pur-
poses of this paragraph, the term ‘thermal energy stor-
age property’ means property comprising a system
which—
‘‘(I) is directly connected to a heating, ventila-
tion, or air conditioning system,
‘‘(II) removes heat from, or adds heat to, a
storage medium for subsequent use, and
‘‘(III) provides energy for the heating or cooling
of the interior of a residential or commercial
building.
‘‘(ii) EXCLUSION.—The term ‘thermal energy stor-
age property’ shall not include—
‘‘(I) a swimming pool,
H. R. 5376—99
‘‘(II) combined heat and power system prop-
erty, or
‘‘(III) a building or its structural components.
‘‘(D) TERMINATION.—The term ‘energy storage tech-
nology’ shall not include any property the construction
of which begins after December 31, 2024.
‘‘(7) QUALIFIED BIOGAS PROPERTY.—
‘‘(A) IN GENERAL.—The term ‘qualified biogas property’
means property comprising a system which—
‘‘(i) converts biomass (as defined in section
45K(c)(3), as in effect on the date of enactment of
this paragraph) into a gas which—
‘‘(I) consists of not less than 52 percent
methane by volume, or
‘‘(II) is concentrated by such system into a
gas which consists of not less than 52 percent
methane, and
‘‘(ii) captures such gas for sale or productive use,
and not for disposal via combustion.
‘‘(B) INCLUSION OF CLEANING AND CONDITIONING PROP-
ERTY.—The term ‘qualified biogas property’ includes any
property which is part of such system which cleans or
conditions such gas.
‘‘(C) TERMINATION.—The term ‘qualified biogas prop-
erty’ shall not include any property the construction of
which begins after December 31, 2024.
‘‘(8) MICROGRID CONTROLLER.—
‘‘(A) IN GENERAL.—The term ‘microgrid controller’
means equipment which is—
‘‘(i) part of a qualified microgrid, and
‘‘(ii) designed and used to monitor and control the
energy resources and loads on such microgrid.
‘‘(B) QUALIFIED MICROGRID.—The term ‘qualified
microgrid’ means an electrical system which—
‘‘(i) includes equipment which is capable of gener-
ating not less than 4 kilowatts and not greater than
20 megawatts of electricity,
‘‘(ii) is capable of operating—
‘‘(I) in connection with the electrical grid and
as a single controllable entity with respect to such
grid, and
‘‘(II) independently (and disconnected) from
such grid, and
‘‘(iii) is not part of a bulk-power system (as defined
in section 215 of the Federal Power Act (16 U.S.C.
824o)).
‘‘(C) TERMINATION.—The term ‘microgrid controller’
shall not include any property the construction of which
begins after December 31, 2024.’’.
(4) DENIAL OF DOUBLE BENEFIT FOR QUALIFIED BIOGAS PROP-
ERTY.—Section 45(e) is amended by adding at the end the
following new paragraph:
‘‘(12) COORDINATION WITH ENERGY CREDIT FOR QUALIFIED
BIOGAS PROPERTY.—The term ‘qualified facility’ shall not include
any facility which produces electricity from gas produced by
qualified biogas property (as defined in section 48(c)(7)) if a
H. R. 5376—100
credit is allowed under section 48 with respect to such property
for the taxable year or any prior taxable year.’’.
(5) PUBLIC UTILITY PROPERTY.—Paragraph (2) of section
50(d) is amended—
(A) by adding after the first sentence the following
new sentence: ‘‘At the election of a taxpayer, this paragraph
shall not apply to any energy storage technology (as defined
in section 48(c)(6)), provided—’’, and
(B) by adding the following new subparagraphs:
‘‘(A) no election under this paragraph shall be per-
mitted if the making of such election is prohibited by
a State or political subdivision thereof, by any agency or
instrumentality of the United States, or by a public service
or public utility commission or other similar body of any
State or political subdivision that regulates public utilities
as described in section 7701(a)(33)(A),
‘‘(B) an election under this paragraph shall be made
separately with respect to each energy storage technology
by the due date (including extensions) of the Federal tax
return for the taxable year in which the energy storage
technology is placed in service by the taxpayer, and once
made, may be revoked only with the consent of the Sec-
retary, and
‘‘(C) an election shall not apply with respect to any
energy storage technology if such energy storage technology
has a maximum capacity equal to or less than 500 kilowatt
hours.’’.
(g) FUEL CELLS USING ELECTROMECHANICAL PROCESSES.—
(1) IN GENERAL.—Section 48(c)(1) is amended—
(A) in subparagraph (A)(i)—
(i) by inserting ‘‘or electromechanical’’ after
‘‘electrochemical’’, and
(ii) by inserting ‘‘(1 kilowatt in the case of a fuel
cell power plant with a linear generator assembly)’’
after ‘‘0.5 kilowatt’’, and
(B) in subparagraph (C)—
(i) by inserting ‘‘, or linear generator assembly,’’
after ‘‘a fuel cell stack assembly’’, and
(ii) by inserting ‘‘or electromechanical’’ after
‘‘electrochemical’’.
(2) LINEAR GENERATOR ASSEMBLY LIMITATION.—Section
48(c)(1) is amended by redesignating subparagraph (D) as
subparagraph (E) and by inserting after subparagraph (C) the
following new subparagraph:
‘‘(D) LINEAR GENERATOR ASSEMBLY.—The term ‘linear
generator assembly’ does not include any assembly which
contains rotating parts.’’.
(h) DYNAMIC GLASS.—Section 48(a)(3)(A)(ii) is amended by
inserting ‘‘, or electrochromic glass which uses electricity to change
its light transmittance properties in order to heat or cool a struc-
ture,’’ after ‘‘sunlight’’.
(i) COORDINATION WITH LOW INCOME HOUSING TAX CREDIT.—
Paragraph (3) of section 50(c) is amended—
(1) by striking ‘‘and’’ at the end of subparagraph (A),
(2) by striking the period at the end of subparagraph (B)
and inserting ‘‘, and’’, and
(3) by adding at the end the following new subparagraph:
H. R. 5376—101
‘‘(C) paragraph (1) shall not apply for purposes of deter-
mining eligible basis under section 42.’’.
(j) INTERCONNECTION PROPERTY.—Section 48(a), as amended
by the preceding provisions of this Act, is amended by adding
at the end the following new paragraph:
‘‘(8) INTERCONNECTION PROPERTY.—
‘‘(A) IN GENERAL.—For purposes of determining the
credit under subsection (a), energy property shall include
amounts paid or incurred by the taxpayer for qualified
interconnection property in connection with the installation
of energy property (as defined in paragraph (3)) which
has a maximum net output of not greater than 5 megawatts
(as measured in alternating current), to provide for the
transmission or distribution of the electricity produced or
stored by such property, and which are properly chargeable
to the capital account of the taxpayer.
‘‘(B) QUALIFIED INTERCONNECTION PROPERTY.—The
term ‘qualified interconnection property’ means, with
respect to an energy project which is not a microgrid con-
troller, any tangible property—
‘‘(i) which is part of an addition, modification, or
upgrade to a transmission or distribution system which
is required at or beyond the point at which the energy
project interconnects to such transmission or distribu-
tion system in order to accommodate such interconnec-
tion,
‘‘(ii) either—
‘‘(I) which is constructed, reconstructed, or
erected by the taxpayer, or
‘‘(II) for which the cost with respect to the
construction, reconstruction, or erection of such
property is paid or incurred by such taxpayer,
and
‘‘(iii) the original use of which, pursuant to an
interconnection agreement, commences with a utility.
‘‘(C) INTERCONNECTION AGREEMENT.—The term ‘inter-
connection agreement’ means an agreement with a utility
for the purposes of interconnecting the energy property
owned by such taxpayer to the transmission or distribution
system of such utility.
‘‘(D) UTILITY.—For purposes of this paragraph, the
term ‘utility’ means the owner or operator of an electrical
transmission or distribution system which is subject to
the regulatory authority of a State or political subdivision
thereof, any agency or instrumentality of the United States,
a public service or public utility commission or other similar
body of any State or political subdivision thereof, or the
governing or ratemaking body of an electric cooperative.
‘‘(E) SPECIAL RULE FOR INTERCONNECTION PROPERTY.—
In the case of expenses paid or incurred for interconnection
property, amounts otherwise chargeable to capital account
with respect to such expenses shall be reduced under rules
similar to the rules of section 50(c).’’.
(k) ENERGY PROJECTS, WAGE REQUIREMENTS, AND APPRENTICE-
SHIP REQUIREMENTS.—Section 48(a), as amended by the preceding
provisions of this Act, is amended by adding at the end the following
new paragraphs:
H. R. 5376—102
‘‘(9) INCREASED CREDIT AMOUNT FOR ENERGY PROJECTS.—
‘‘(A) IN GENERAL.—
‘‘(i) RULE.—In the case of any energy project which
satisfies the requirements of subparagraph (B), the
amount of the credit determined under this subsection
(determined after the application of paragraphs (1)
through (8) and without regard to this clause) shall
be equal to such amount multiplied by 5.
‘‘(ii) ENERGY PROJECT DEFINED.—For purposes of
this subsection, the term ‘energy project’ means a
project consisting of one or more energy properties
that are part of a single project.
‘‘(B) PROJECT REQUIREMENTS.—A project meets the
requirements of this subparagraph if it is one of the fol-
lowing:
‘‘(i) A project with a maximum net output of less
than 1 megawatt of electrical (as measured in alter-
nating current) or thermal energy.
‘‘(ii) A project the construction of which begins
before the date that is 60 days after the Secretary
publishes guidance with respect to the requirements
of paragraphs (10)(A) and (11).
‘‘(iii) A project which satisfies the requirements
of paragraphs (10)(A) and (11).
‘‘(10) PREVAILING WAGE REQUIREMENTS.—
‘‘(A) IN GENERAL.—The requirements described in this
subparagraph with respect to any energy project are that
the taxpayer shall ensure that any laborers and mechanics
employed by the taxpayer or any contractor or subcon-
tractor in—
‘‘(i) the construction of such energy project, and
‘‘(ii) for the 5-year period beginning on the date
such project is originally placed in service, the alter-
ation or repair of such project,
shall be paid wages at rates not less than the prevailing
rates for construction, alteration, or repair of a similar
character in the locality in which such project is located
as most recently determined by the Secretary of Labor,
in accordance with subchapter IV of chapter 31 of title
40, United States Code. Subject to subparagraph (C), for
purposes of any determination under paragraph (9)(A)(i)
for the taxable year in which the energy project is placed
in service, the taxpayer shall be deemed to satisfy the
requirement under clause (ii) at the time such project is
placed in service.
‘‘(B) CORRECTION AND PENALTY RELATED TO FAILURE
TO SATISFY WAGE REQUIREMENTS.—Rules similar to the
rules of section 45(b)(7)(B) shall apply.
‘‘(C) RECAPTURE.—The Secretary shall, by regulations
or other guidance, provide for recapturing the benefit of
any increase in the credit allowed under this subsection
by reason of this paragraph with respect to any project
which does not satisfy the requirements under subpara-
graph (A) (after application of subparagraph (B)) for the
period described in clause (ii) of subparagraph (A) (but
which does not cease to be investment credit property
within the meaning of section 50(a)). The period and
H. R. 5376—103
percentage of such recapture shall be determined under
rules similar to the rules of section 50(a).
‘‘(11) APPRENTICESHIP REQUIREMENTS.—Rules similar to the
rules of section 45(b)(8) shall apply.’’.
(l) DOMESTIC CONTENT; PHASEOUT FOR ELECTIVE PAYMENT.—
Section 48(a), as amended by the preceding provisions of this Act,
is amended by adding at the end the following new paragraphs:
‘‘(12) DOMESTIC CONTENT BONUS CREDIT AMOUNT.—
‘‘(A) IN GENERAL.—In the case of any energy project
which satisfies the requirement under subparagraph (B),
for purposes of applying paragraph (2) with respect to
such property, the energy percentage shall be increased
by the applicable credit rate increase.
‘‘(B) REQUIREMENT.—Rules similar to the rules of sec-
tion 45(b)(9)(B) shall apply.
‘‘(C) APPLICABLE CREDIT RATE INCREASE.—For purposes
of subparagraph (A), the applicable credit rate increase
shall be—
‘‘(i) in the case of an energy project which does
not satisfy the requirements of paragraph (9)(B), 2
percentage points, and
‘‘(ii) in the case of an energy project which satisfies
the requirements of paragraph (9)(B), 10 percentage
points.
‘‘(13) PHASEOUT FOR ELECTIVE PAYMENT.—In the case of
a taxpayer making an election under section 6417 with respect
to a credit under this section, rules similar to the rules of
section 45(b)(10) shall apply.’’.
(m) SPECIAL RULE FOR PROPERTY FINANCED BY TAX-EXEMPT
BONDS.—Section 48(a)(4) is amended to read as follows:
‘‘(4) SPECIAL RULE FOR PROPERTY FINANCED BY TAX-EXEMPT
BONDS.—Rules similar to the rule under section 45(b)(3) shall
apply for purposes of this section.’’.
(n) TREATMENT OF CERTAIN CONTRACTS INVOLVING ENERGY
STORAGE.—Section 7701(e) is amended—
(1) in paragraph (3)—
(A) in subparagraph (A)(i), by striking ‘‘or’’ at the end
of subclause (II), by striking ‘‘and’’ at the end of subclause
(III) and inserting ‘‘or’’, and by adding at the end the
following new subclause:
‘‘(IV) the operation of a storage facility, and’’,
and
(B) by adding at the end the following new subpara-
graph:
‘‘(F) STORAGE FACILITY.—For purposes of subparagraph
(A), the term ‘storage facility’ means a facility which uses
energy storage technology within the meaning of section
48(c)(6).’’, and
(2) in paragraph (4), by striking ‘‘or water treatment works
facility’’ and inserting ‘‘water treatment works facility, or stor-
age facility’’.
(o) INCREASE IN CREDIT RATE FOR ENERGY COMMUNITIES.—
Section 48(a), as amended by the preceding provisions of this Act,
is amended by adding at the end the following new paragraph:
‘‘(14) INCREASE IN CREDIT RATE FOR ENERGY COMMU-
NITIES.—
H. R. 5376—104
‘‘(A) IN GENERAL.—In the case of any energy project
that is placed in service within an energy community (as
defined in section 45(b)(11)(B), as applied by substituting
‘energy project’ for ‘qualified facility’ each place it appears),
for purposes of applying paragraph (2) with respect to
energy property which is part of such project, the energy
percentage shall be increased by the applicable credit rate
increase.
‘‘(B) APPLICABLE CREDIT RATE INCREASE.—For purposes
of subparagraph (A), the applicable credit rate increase
shall be equal to—
‘‘(i) in the case of any energy project which does
not satisfy the requirements of paragraph (9)(B), 2
percentage points, and
‘‘(ii) in the case of any energy project which satis-
fies the requirements of paragraph (9)(B), 10 percent-
age points.’’.
(p) REGULATIONS.—Section 48(a), as amended by the preceding
provisions of this Act, is amended by adding at the end the following
new paragraph:
‘‘(15) REGULATIONS AND GUIDANCE.—The Secretary shall
issue such regulations or other guidance as the Secretary deter-
mines necessary to carry out the purposes of this subsection,
including regulations or other guidance which provides for
requirements for recordkeeping or information reporting for
purposes of administering the requirements of this subsection.’’.
(q) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided in paragraphs (2)
and (3), the amendments made by this section shall apply
to property placed in service after December 31, 2021.
(2) OTHER PROPERTY.—The amendments made by sub-
sections (f), (g), (h), (i), (j), (l), (n), and (o) shall apply to
property placed in service after December 31, 2022.
(3) SPECIAL RULE FOR PROPERTY FINANCED BY TAX-EXEMPT
BONDS.—The amendments made by subsection (m) shall apply
to property the construction of which begins after the date
of enactment of this Act.
SEC. 13103. INCREASE IN ENERGY CREDIT FOR SOLAR AND WIND
FACILITIES PLACED IN SERVICE IN CONNECTION WITH
LOW-INCOME COMMUNITIES.
(a) IN GENERAL.—Section 48 is amended by adding at the
end the following new subsection:
‘‘(e) SPECIAL RULES FOR CERTAIN SOLAR AND WIND FACILITIES
PLACED IN SERVICE IN CONNECTION WITH LOW-INCOME COMMU-
NITIES.—
‘‘(1) IN GENERAL.—In the case of any qualified solar and
wind facility with respect to which the Secretary makes an
allocation of environmental justice solar and wind capacity
limitation under paragraph (4)—
‘‘(A) the energy percentage otherwise determined under
paragraph (2) or (5) of subsection (a) with respect to any
eligible property which is part of such facility shall be
increased by—
H. R. 5376—105
‘‘(i) in the case of a facility described in subclause
(I) of paragraph (2)(A)(iii) and not described in sub-
clause (II) of such paragraph, 10 percentage points,
and
‘‘(ii) in the case of a facility described in subclause
(II) of paragraph (2)(A)(iii), 20 percentage points, and
‘‘(B) the increase in the credit determined under sub-
section (a) by reason of this subsection for any taxable
year with respect to all property which is part of such
facility shall not exceed the amount which bears the same
ratio to the amount of such increase (determined without
regard to this subparagraph) as—
‘‘(i) the environmental justice solar and wind
capacity limitation allocated to such facility, bears to
‘‘(ii) the total megawatt nameplate capacity of such
facility, as measured in direct current.
‘‘(2) QUALIFIED SOLAR AND WIND FACILITY.—For purposes
of this subsection—
‘‘(A) IN GENERAL.—The term ‘qualified solar and wind
facility’ means any facility—
‘‘(i) which generates electricity solely from property
described in section 45(d)(1) or in clause (i) or (vi)
of subsection (a)(3)(A),
‘‘(ii) which has a maximum net output of less than
5 megawatts (as measured in alternating current), and
‘‘(iii) which—
‘‘(I) is located in a low-income community (as
defined in section 45D(e)) or on Indian land (as
defined in section 2601(2) of the Energy Policy
Act of 1992 (25 U.S.C. 3501(2))), or
‘‘(II) is part of a qualified low-income residen-
tial building project or a qualified low-income eco-
nomic benefit project.
‘‘(B) QUALIFIED LOW-INCOME RESIDENTIAL BUILDING
PROJECT.—A facility shall be treated as part of a qualified
low-income residential building project if—
‘‘(i) such facility is installed on a residential rental
building which participates in a covered housing pro-
gram (as defined in section 41411(a) of the Violence
Against Women Act of 1994 (34 U.S.C. 12491(a)(3)),
a housing assistance program administered by the
Department of Agriculture under title V of the Housing
Act of 1949, a housing program administered by a
tribally designated housing entity (as defined in section
4(22) of the Native American Housing Assistance and
Self-Determination Act of 1996 (25 U.S.C. 4103(22)))
or such other affordable housing programs as the Sec-
retary may provide, and
‘‘(ii) the financial benefits of the electricity pro-
duced by such facility are allocated equitably among
the occupants of the dwelling units of such building.
‘‘(C) QUALIFIED LOW-INCOME ECONOMIC BENEFIT
PROJECT.—A facility shall be treated as part of a qualified
low-income economic benefit project if at least 50 percent
of the financial benefits of the electricity produced by such
facility are provided to households with income of—
H. R. 5376—106
‘‘(i) less than 200 percent of the poverty line (as
defined in section 36B(d)(3)(A)) applicable to a family
of the size involved, or
‘‘(ii) less than 80 percent of area median gross
income (as determined under section 142(d)(2)(B)).
‘‘(D) FINANCIAL BENEFIT.—For purposes of subpara-
graphs (B) and (C), electricity acquired at a below-market
rate shall not fail to be taken into account as a financial
benefit.
‘‘(3) ELIGIBLE PROPERTY.—For purposes of this section, the
term ‘eligible property’ means energy property which—
‘‘(A) is part of a facility described in section 45(d)(1)
for which an election was made under subsection (a)(5),
or
‘‘(B) is described in clause (i) or (vi) of subsection
(a)(3)(A),
including energy storage technology (as described in subsection
(a)(3)(A)(ix)) installed in connection with such energy property.
‘‘(4) ALLOCATIONS.—
‘‘(A) IN GENERAL.—Not later than 180 days after the
date of enactment of this subsection, the Secretary shall
establish a program to allocate amounts of environmental
justice solar and wind capacity limitation to qualified solar
and wind facilities. In establishing such program and to
carry out the purposes of this subsection, the Secretary
shall provide procedures to allow for an efficient allocation
process, including, when determined appropriate, consider-
ation of multiple projects in a single application if such
projects will be placed in service by a single taxpayer.
‘‘(B) LIMITATION.—The amount of environmental justice
solar and wind capacity limitation allocated by the Sec-
retary under subparagraph (A) during any calendar year
shall not exceed the annual capacity limitation with respect
to such year.
‘‘(C) ANNUAL CAPACITY LIMITATION.—For purposes of
this paragraph, the term ‘annual capacity limitation’ means
1.8 gigawatts of direct current capacity for each of calendar
years 2023 and 2024, and zero thereafter.
‘‘(D) CARRYOVER OF UNUSED LIMITATION.—If the annual
capacity limitation for any calendar year exceeds the aggre-
gate amount allocated for such year under this paragraph,
such limitation for the succeeding calendar year shall be
increased by the amount of such excess. No amount may
be carried under the preceding sentence to any calendar
year after 2024 except as provided in section
48E(h)(4)(D)(ii).
‘‘(E) PLACED IN SERVICE DEADLINE.—
‘‘(i) IN GENERAL.—Paragraph (1) shall not apply
with respect to any property which is placed in service
after the date that is 4 years after the date of the
allocation with respect to the facility of which such
property is a part.
‘‘(ii) APPLICATION OF CARRYOVER.—Any amount of
environmental justice solar and wind capacity limita-
tion which expires under clause (i) during any calendar
year shall be taken into account as an excess described
in subparagraph (D) (or as an increase in such excess)
H. R. 5376—107
for such calendar year, subject to the limitation
imposed by the last sentence of such subparagraph.
‘‘(5) RECAPTURE.—The Secretary shall, by regulations or
other guidance, provide for recapturing the benefit of any
increase in the credit allowed under subsection (a) by reason
of this subsection with respect to any property which ceases
to be property eligible for such increase (but which does not
cease to be investment credit property within the meaning
of section 50(a)). The period and percentage of such recapture
shall be determined under rules similar to the rules of section
50(a). To the extent provided by the Secretary, such recapture
may not apply with respect to any property if, within 12 months
after the date the taxpayer becomes aware (or reasonably
should have become aware) of such property ceasing to be
property eligible for such increase, the eligibility of such prop-
erty for such increase is restored. The preceding sentence shall
not apply more than once with respect to any facility.’’.
(b) EFFECTIVE DATE.—The amendments made by this section
shall take effect on January 1, 2023.
SEC. 13104. EXTENSION AND MODIFICATION OF CREDIT FOR CARBON
OXIDE SEQUESTRATION.
(a) MODIFICATION OF CARBON OXIDE CAPTURE REQUIRE-
MENTS.—
(1) IN GENERAL.—Section 45Q(d) is amended to read as
follows:
‘‘(d) QUALIFIED FACILITY.—For purposes of this section, the
term ‘qualified facility’ means any industrial facility or direct air
capture facility—
‘‘(1) the construction of which begins before January 1,
2033, and either—
‘‘(A) construction of carbon capture equipment begins
before such date, or
‘‘(B) the original planning and design for such facility
includes installation of carbon capture equipment, and
‘‘(2) which—
‘‘(A) in the case of a direct air capture facility, captures
not less than 1,000 metric tons of qualified carbon oxide
during the taxable year,
‘‘(B) in the case of an electricity generating facility—
‘‘(i) captures not less than 18,750 metric tons of
qualified carbon oxide during the taxable year, and
‘‘(ii) with respect to any carbon capture equipment
for the applicable electric generating unit at such
facility, has a capture design capacity of not less than
75 percent of the baseline carbon oxide production
of such unit, or
‘‘(C) in the case of any other facility, captures not
less than 12,500 metric tons of qualified carbon oxide
during the taxable year.’’.
(2) DEFINITIONS.—
(A) IN GENERAL.—Section 45Q(e) is amended—
(i) by redesignating paragraphs (1) through (3)
as paragraphs (3) through (5), respectively, and
(ii) by inserting after ‘‘For purposes of this sec-
tion—’’ the following new paragraphs:
H. R. 5376—108
‘‘(1) APPLICABLE ELECTRIC GENERATING UNIT.—The term
‘applicable electric generating unit’ means the principal electric
generating unit for which the carbon capture equipment is
originally planned and designed.
‘‘(2) BASELINE CARBON OXIDE PRODUCTION.—
‘‘(A) IN GENERAL.—The term ‘baseline carbon oxide
production’ means either of the following:
‘‘(i) In the case of an applicable electric generating
unit which was originally placed in service more than
1 year prior to the date on which construction of the
carbon capture equipment begins, the average annual
carbon oxide production, by mass, from such unit
during—
‘‘(I) in the case of an applicable electric gener-
ating unit which was originally placed in service
more than 1 year prior to the date on which
construction of the carbon capture equipment
begins and on or after the date which is 3 years
prior to the date on which construction of such
equipment begins, the period beginning on the date
such unit was placed in service and ending on
the date on which construction of such equipment
began, and
‘‘(II) in the case of an applicable electric gener-
ating unit which was originally placed in service
more than 3 years prior to the date on which
construction of the carbon capture equipment
begins, the 3 years with the highest annual carbon
oxide production during the 12-year period pre-
ceding the date on which construction of such
equipment began.
‘‘(ii) In the case of an applicable electric generating
unit which—
‘‘(I) as of the date on which construction of
the carbon capture equipment begins, is not yet
placed in service, or
‘‘(II) was placed in service during the 1-year
period prior to the date on which construction of
the carbon capture equipment begins,
the designed annual carbon oxide production, by mass,
as determined based on an assumed capacity factor
of 60 percent.
‘‘(B) CAPACITY FACTOR.—The term ‘capacity factor’
means the ratio (expressed as a percentage) of the actual
electric output from the applicable electric generating unit
to the potential electric output from such unit.’’.
(B) CONFORMING AMENDMENT.—Section 142(o)(1)(B) is
amended by striking ‘‘section 45Q(e)(1)’’ and inserting ‘‘sec-
tion 45Q(e)(3)’’.
(b) MODIFIED APPLICABLE DOLLAR AMOUNT.—Section
45Q(b)(1)(A) is amended—
(1) in clause (i)—
(A) in subclause (I), by striking ‘‘the dollar amount’’
and all that follows through ‘‘such period’’ and inserting
‘‘$17’’, and
H. R. 5376—109
(B) in subclause (II), by striking ‘‘the dollar amount’’
and all that follows through ‘‘such period’’ and inserting
‘‘$12’’, and
(2) in clause (ii)—
(A) in subclause (I), by striking ‘‘$50’’ and inserting
‘‘$17’’, and
(B) in subclause (II), by striking ‘‘$35’’ and inserting
‘‘$12’’.
(c) DETERMINATION OF APPLICABLE DOLLAR AMOUNT.—
(1) IN GENERAL.—Section 45Q(b)(1), as amended by the
preceding provisions of this Act, is amended—
(A) by redesignating subparagraph (B) as subpara-
graph (D), and
(B) by inserting after subparagraph (A) the following
new subparagraphs:
‘‘(B) SPECIAL RULE FOR DIRECT AIR CAPTURE FACILI-
TIES.—In the case of any qualified facility described in
subsection (d)(2)(A) which is placed in service after
December 31, 2022, the applicable dollar amount shall
be an amount equal to the applicable dollar amount other-
wise determined with respect to such qualified facility
under subparagraph (A), except that such subparagraph
shall be applied—
‘‘(i) by substituting ‘$36’ for ‘$17’ each place it
appears, and
‘‘(ii) by substituting ‘$26’ for ‘$12’ each place it
appears.
‘‘(C) APPLICABLE DOLLAR AMOUNT FOR ADDITIONAL
CARBON CAPTURE EQUIPMENT.—In the case of any qualified
facility which is placed in service before January 1, 2023,
if any additional carbon capture equipment is installed
at such facility and such equipment is placed in service
after December 31, 2022, the applicable dollar amount
shall be an amount equal to the applicable dollar amount
otherwise determined under this paragraph, except that
subparagraph (B) shall be applied—
‘‘(i) by substituting ‘before January 1, 2023’ for
‘after December 31, 2022’, and
‘‘(ii) by substituting ‘the additional carbon capture
equipment installed at such qualified facility’ for ‘such
qualified facility’.’’.
(2) CONFORMING AMENDMENTS.—
(A) Section 45Q(b)(1)(A) is amended by striking ‘‘The
applicable dollar amount’’ and inserting ‘‘Except as pro-
vided in subparagraph (B) or (C), the applicable dollar
amount’’.
(B) Section 45Q(b)(1)(D), as redesignated by paragraph
(1)(A), is amended by striking ‘‘subparagraph (A)’’ and
inserting ‘‘subparagraph (A), (B), or (C)’’.
(d) WAGE AND APPRENTICESHIP REQUIREMENTS.—Section 45Q
is amended by redesignating subsection (h) as subsection (i) and
inserting after subsection (g) following new subsection:
‘‘(h) INCREASED CREDIT AMOUNT FOR QUALIFIED FACILITIES AND
CARBON CAPTURE EQUIPMENT.—
‘‘(1) IN GENERAL.—In the case of any qualified facility or
any carbon capture equipment which satisfy the requirements
of paragraph (2), the amount of the credit determined under
H. R. 5376—110
subsection (a) shall be equal to such amount (determined with-
out regard to this sentence) multiplied by 5.
‘‘(2) REQUIREMENTS.—The requirements described in this
paragraph are that—
‘‘(A) with respect to any qualified facility the construc-
tion of which begins on or after the date that is 60 days
after the Secretary publishes guidance with respect to the
requirements of paragraphs (3)(A) and (4), as well as any
carbon capture equipment placed in service at such
facility—
‘‘(i) subject to subparagraph (B) of paragraph (3),
the taxpayer satisfies the requirements under subpara-
graph (A) of such paragraph with respect to such
facility and equipment, and
‘‘(ii) the taxpayer satisfies the requirements under
paragraph (4) with respect to the construction of such
facility and equipment,
‘‘(B) with respect to any carbon capture equipment
the construction of which begins on or after the date that
is 60 days after the Secretary publishes guidance with
respect to the requirements of paragraphs (3)(A) and (4),
and which is installed at a qualified facility the construction
of which began prior to such date—
‘‘(i) subject to subparagraph (B) of paragraph (3),
the taxpayer satisfies the requirements under subpara-
graph (A) of such paragraph with respect to such equip-
ment, and
‘‘(ii) the taxpayer satisfies the requirements under
paragraph (4) with respect to the construction of such
equipment, or
‘‘(C) the construction of carbon capture equipment
begins prior to the date that is 60 days after the Secretary
publishes guidance with respect to the requirements of
paragraphs (3)(A) and (4), and such equipment is installed
at a qualified facility the construction of which begins
prior to such date.
‘‘(3) PREVAILING WAGE REQUIREMENTS.—
‘‘(A) IN GENERAL.—The requirements described in this
subparagraph with respect to any qualified facility and
any carbon capture equipment placed in service at such
facility are that the taxpayer shall ensure that any laborers
and mechanics employed by the taxpayer or any contractor
or subcontractor in—
‘‘(i) the construction of such facility or equipment,
and
‘‘(ii) with respect to any taxable year, for any por-
tion of such taxable year which is within the period
described in paragraph (3)(A) or (4)(A) of subsection
(a), the alteration or repair of such facility or such
equipment,
shall be paid wages at rates not less than the prevailing
rates for construction, alteration, or repair of a similar
character in the locality in which such facility and equip-
ment are located as most recently determined by the Sec-
retary of Labor, in accordance with subchapter IV of
chapter 31 of title 40, United States Code. For purposes
H. R. 5376—111
of determining an increased credit amount under para-
graph (1) for a taxable year, the requirement under clause
(ii) of this subparagraph is applied to such taxable year
in which the alteration or repair of qualified facility occurs.
‘‘(B) CORRECTION AND PENALTY RELATED TO FAILURE
TO SATISFY WAGE REQUIREMENTS.—Rules similar to the
rules of section 45(b)(7)(B) shall apply.
‘‘(4) APPRENTICESHIP REQUIREMENTS.—Rules similar to the
rules of section 45(b)(8) shall apply.
‘‘(5) REGULATIONS AND GUIDANCE.—The Secretary shall
issue such regulations or other guidance as the Secretary deter-
mines necessary to carry out the purposes of this subsection,
including regulations or other guidance which provides for
requirements for recordkeeping or information reporting for
purposes of administering the requirements of this subsection.’’.
(e) CREDIT REDUCED FOR TAX-EXEMPT BONDS.—Section 45Q(f)
is amended—
(1) by striking the second paragraph (3), as added at the
end of such section by section 80402(e) of the Infrastructure
Investment and Jobs Act (Public Law 117-58), and
(2) by adding at the end the following new paragraph:
‘‘(8) CREDIT REDUCED FOR TAX-EXEMPT BONDS.—Rules
similar to the rule under section 45(b)(3) shall apply for pur-
poses of this section.’’.
(f) APPLICATION OF SECTION FOR CERTAIN CARBON CAPTURE
EQUIPMENT.—Section 45Q(g) is amended by inserting ‘‘the earlier
of January 1, 2023, and’’ before ‘‘the end of the calendar year’’.
(g) ELECTION.—Section 45Q(f), as amended by subsection (e),
is amended by adding at the end the following new paragraph:
‘‘(9) ELECTION.—For purposes of paragraphs (3) and (4)
of subsection (a), a person described in paragraph (3)(A)(ii)
may elect, at such time and in such manner as the Secretary
may prescribe, to have the 12–year period begin on the first
day of the first taxable year in which a credit under this
section is claimed with respect to carbon capture equipment
which is originally placed in service at a qualified facility on
or after the date of the enactment of the Bipartisan Budget
Act of 2018 (after application of paragraph (6), where
applicable) if—
‘‘(A) no taxpayer claimed a credit under this section
with respect to such carbon capture equipment for any
prior taxable year,
‘‘(B) the qualified facility at which such carbon capture
equipment is placed in service is located in an area affected
by a federally-declared disaster (as defined by section
165(i)(5)(A)) after the carbon capture equipment is origi-
nally placed in service, and
‘‘(C) such federally-declared disaster results in a ces-
sation of the operation of the qualified facility or the carbon
capture equipment after such equipment is originally
placed in service.’’.
(h) REGULATIONS FOR BASELINE CARBON OXIDE PRODUCTION.—
Subsection (i) of section 45Q, as redesignated by subsection (d),
is amended—
(1) in paragraph (1), by striking ‘‘and’’,
(2) in paragraph (2), by striking the period at the end
and inserting ‘‘, and’’, and
H. R. 5376—112
(3) by adding at the end the following new paragraph:
‘‘(3) for purposes of subsection (d)(2)(B)(ii), adjust the base-
line carbon oxide production with respect to any applicable
electric generating unit at any electricity generating facility
if, after the date on which the carbon capture equipment is
placed in service, modifications which are chargeable to capital
account are made to such unit which result in a significant
increase or decrease in carbon oxide production.’’.
(i) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided in paragraphs (2),
(3), and (4), the amendments made by this section shall apply
to facilities or equipment placed in service after December
31, 2022.
(2) MODIFICATION OF CARBON OXIDE CAPTURE REQUIRE-
MENTS.—The amendments made by subsection (a) shall apply
to facilities or equipment the construction of which begins after
the date of enactment of this Act.
(3) APPLICATION OF SECTION FOR CERTAIN CARBON CAPTURE
EQUIPMENT.—The amendments made by subsection (f) shall
take effect on the date of enactment of this Act.
(4) ELECTION.—The amendments made by subsection (g)
shall apply to carbon oxide captured and disposed of after
December 31, 2021.
SEC. 13105. ZERO-EMISSION NUCLEAR POWER PRODUCTION CREDIT.
(a) IN GENERAL.—Subpart D of part IV of subchapter A of
chapter 1 is amended by adding at the end the following new
section:
‘‘SEC. 45U. ZERO-EMISSION NUCLEAR POWER PRODUCTION CREDIT.
‘‘(a) AMOUNT OF CREDIT.—For purposes of section 38, the zero-
emission nuclear power production credit for any taxable year is
an amount equal to the amount by which—
‘‘(1) the product of—
‘‘(A) 0.3 cents, multiplied by
‘‘(B) the kilowatt hours of electricity—
‘‘(i) produced by the taxpayer at a qualified nuclear
power facility, and
‘‘(ii) sold by the taxpayer to an unrelated person
during the taxable year, exceeds
‘‘(2) the reduction amount for such taxable year.
‘‘(b) DEFINITIONS.—
‘‘(1) QUALIFIED NUCLEAR POWER FACILITY.—For purposes
of this section, the term ‘qualified nuclear power facility’ means
any nuclear facility—
‘‘(A) which is owned by the taxpayer and which uses
nuclear energy to produce electricity,
‘‘(B) which is not an advanced nuclear power facility
as defined in subsection (d)(1) of section 45J, and
‘‘(C) which is placed in service before the date of the
enactment of this section.
‘‘(2) REDUCTION AMOUNT.—
‘‘(A) IN GENERAL.—For purposes of this section, the
term ‘reduction amount’ means, with respect to any quali-
fied nuclear power facility for any taxable year, the amount
equal to the lesser of—
‘‘(i) the amount determined under subsection (a)(1),
or
H. R. 5376—113
‘‘(ii) the amount equal to 16 percent of the excess
of—
‘‘(I) subject to subparagraph (B), the gross
receipts from any electricity produced by such
facility (including any electricity services or prod-
ucts provided in conjunction with the electricity
produced by such facility) and sold to an unrelated
person during such taxable year, over
‘‘(II) the amount equal to the product of—
‘‘(aa) 2.5 cents, multiplied by
‘‘(bb) the amount determined under sub-
section (a)(1)(B).
‘‘(B) TREATMENT OF CERTAIN RECEIPTS.—
‘‘(i) IN GENERAL.—Subject to clause (iii), the
amount determined under subparagraph (A)(ii)(I) shall
include any amount received by the taxpayer during
the taxable year with respect to the qualified nuclear
power facility from a zero-emission credit program.
For purposes of determining the amount received
during such taxable year, the taxpayer shall take into
account any reductions required under such program.
‘‘(ii) ZERO-EMISSION CREDIT PROGRAM.—For pur-
poses of this subparagraph, the term ‘zero-emission
credit program’ means any payments with respect to
a qualified nuclear power facility as a result of any
Federal, State or local government program for, in
whole or in part, the zero-emission, zero-carbon, or
air quality attributes of any portion of the electricity
produced by such facility.
‘‘(iii) EXCLUSION.—For purposes of clause (i), any
amount received by the taxpayer from a zero-emission
credit program shall be excluded from the amount
determined under subparagraph (A)(ii)(I) if the full
amount of the credit calculated pursuant to subsection
(a) (determined without regard to this subparagraph)
is used to reduce payments from such zero-emission
credit program.
‘‘(3) ELECTRICITY.—For purposes of this section, the term
‘electricity’ means the energy produced by a qualified nuclear
power facility from the conversion of nuclear fuel into electric
power.
‘‘(c) OTHER RULES.—
‘‘(1) INFLATION ADJUSTMENT.—The 0.3 cent amount in sub-
section (a)(1)(A) and the 2.5 cent amount in subsection
(b)(2)(A)(ii)(II)(aa) shall each be adjusted by multiplying such
amount by the inflation adjustment factor (as determined under
section 45(e)(2), as applied by substituting ‘calendar year 2023’
for ‘calendar year 1992’ in subparagraph (B) thereof) for the
calendar year in which the sale occurs. If the 0.3 cent amount
as increased under this paragraph is not a multiple of 0.05
cent, such amount shall be rounded to the nearest multiple
of 0.05 cent. If the 2.5 cent amount as increased under this
paragraph is not a multiple of 0.1 cent, such amount shall
be rounded to the nearest multiple of 0.1 cent.
‘‘(2) SPECIAL RULES.—Rules similar to the rules of para-
graphs (1), (3), (4), and (5) of section 45(e) shall apply for
purposes of this section.
H. R. 5376—114
‘‘(d) WAGE REQUIREMENTS.—
‘‘(1) INCREASED CREDIT AMOUNT FOR QUALIFIED NUCLEAR
POWER FACILITIES.—In the case of any qualified nuclear power
facility which satisfies the requirements of paragraph (2)(A),
the amount of the credit determined under subsection (a) shall
be equal to such amount (as determined without regard to
this sentence) multiplied by 5.
‘‘(2) PREVAILING WAGE REQUIREMENTS.—
‘‘(A) IN GENERAL.—The requirements described in this
subparagraph with respect to any qualified nuclear power
facility are that the taxpayer shall ensure that any laborers
and mechanics employed by the taxpayer or any contractor
or subcontractor in the alteration or repair of such facility
shall be paid wages at rates not less than the prevailing
rates for alteration or repair of a similar character in
the locality in which such facility is located as most recently
determined by the Secretary of Labor, in accordance with
subchapter IV of chapter 31 of title 40, United States
Code.
‘‘(B) CORRECTION AND PENALTY RELATED TO FAILURE
TO SATISFY WAGE REQUIREMENTS.—Rules similar to the
rules of section 45(b)(7)(B) shall apply.
‘‘(3) REGULATIONS AND GUIDANCE.—The Secretary shall
issue such regulations or other guidance as the Secretary deter-
mines necessary to carry out the purposes of this subsection,
including regulations or other guidance which provides for
requirements for recordkeeping or information reporting for
purposes of administering the requirements of this subsection.
‘‘(e) TERMINATION.—This section shall not apply to taxable years
beginning after December 31, 2032.’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 38(b) is amended—
(A) in paragraph (32), by striking ‘‘plus’’ at the end,
(B) in paragraph (33), by striking the period at the
end and inserting ‘‘, plus’’, and
(C) by adding at the end the following new paragraph:
‘‘(34) the zero-emission nuclear power production credit
determined under section 45U(a).’’.
(2) The table of sections for subpart D of part IV of sub-
chapter A of chapter 1 is amended by adding at the end the
following new item:
‘‘Sec. 45U. Zero-emission nuclear power production credit.’’.
(c) EFFECTIVE DATE.—This section shall apply to electricity
produced and sold after December 31, 2023, in taxable years begin-
ning after such date.
PART 2—CLEAN FUELS
SEC. 13201. EXTENSION OF INCENTIVES FOR BIODIESEL, RENEWABLE
DIESEL AND ALTERNATIVE FUELS.
(a) BIODIESEL AND RENEWABLE DIESEL CREDIT.—Section 40A(g)
is amended by striking ‘‘December 31, 2022’’ and inserting
‘‘December 31, 2024’’.
(b) BIODIESEL MIXTURE CREDIT.—
(1) IN GENERAL.—Section 6426(c)(6) is amended by striking
‘‘December 31, 2022’’ and inserting ‘‘December 31, 2024’’.
H. R. 5376—115
(2) FUELS NOT USED FOR TAXABLE PURPOSES.—Section
6427(e)(6)(B) is amended by striking ‘‘December 31, 2022’’ and
inserting ‘‘December 31, 2024’’.
(c) ALTERNATIVE FUEL CREDIT.—Section 6426(d)(5) is amended
by striking ‘‘December 31, 2021’’ and inserting ‘‘December 31, 2024’’.
(d) ALTERNATIVE FUEL MIXTURE CREDIT.—Section 6426(e)(3)
is amended by striking ‘‘December 31, 2021’’ and inserting
‘‘December 31, 2024’’.
(e) PAYMENTS FOR ALTERNATIVE FUELS.—Section 6427(e)(6)(C)
is amended by striking ‘‘December 31, 2021’’ and inserting
‘‘December 31, 2024’’.
(f) EFFECTIVE DATE.—The amendments made by this section
shall apply to fuel sold or used after December 31, 2021.
(g) SPECIAL RULE.—In the case of any alternative fuel credit
properly determined under section 6426(d) of the Internal Revenue
Code of 1986 for the period beginning on January 1, 2022, and
ending with the close of the last calendar quarter beginning before
the date of the enactment of this Act, such credit shall be allowed,
and any refund or payment attributable to such credit (including
any payment under section 6427(e) of such Code) shall be made,
only in such manner as the Secretary of the Treasury (or the
Secretary’s delegate) shall provide. Such Secretary shall issue guid-
ance within 30 days after the date of the enactment of this Act
providing for a one-time submission of claims covering periods
described in the preceding sentence. Such guidance shall provide
for a 180-day period for the submission of such claims (in such
manner as prescribed by such Secretary) to begin not later than
30 days after such guidance is issued. Such claims shall be paid
by such Secretary not later than 60 days after receipt. If such
Secretary has not paid pursuant to a claim filed under this sub-
section within 60 days after the date of the filing of such claim,
the claim shall be paid with interest from such date determined
by using the overpayment rate and method under section 6621
of such Code.
SEC. 13202. EXTENSION OF SECOND GENERATION BIOFUEL INCEN-
TIVES.
(a) IN GENERAL.—Section 40(b)(6)(J)(i) is amended by striking
‘‘2022’’ and inserting ‘‘2025’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall apply to qualified second generation biofuel production after
December 31, 2021.
SEC. 13203. SUSTAINABLE AVIATION FUEL CREDIT.
(a) IN GENERAL.—Subpart D of part IV of subchapter A of
chapter 1 is amended by inserting after section 40A the following
new section:
‘‘SEC. 40B. SUSTAINABLE AVIATION FUEL CREDIT.
‘‘(a) IN GENERAL.—For purposes of section 38, the sustainable
aviation fuel credit determined under this section for the taxable
year is, with respect to any sale or use of a qualified mixture
which occurs during such taxable year, an amount equal to the
product of—
‘‘(1) the number of gallons of sustainable aviation fuel
in such mixture, multiplied by
‘‘(2) the sum of—
‘‘(A) $1.25, plus
H. R. 5376—116
‘‘(B) the applicable supplementary amount with respect
to such sustainable aviation fuel.
‘‘(b) APPLICABLE SUPPLEMENTARY AMOUNT.—For purposes of
this section, the term ‘applicable supplementary amount’ means,
with respect to any sustainable aviation fuel, an amount equal
to $0.01 for each percentage point by which the lifecycle greenhouse
gas emissions reduction percentage with respect to such fuel exceeds
50 percent. In no event shall the applicable supplementary amount
determined under this subsection exceed $0.50.
‘‘(c) QUALIFIED MIXTURE.—For purposes of this section, the
term ‘qualified mixture’ means a mixture of sustainable aviation
fuel and kerosene if—
‘‘(1) such mixture is produced by the taxpayer in the United
States,
‘‘(2) such mixture is used by the taxpayer (or sold by
the taxpayer for use) in an aircraft,
‘‘(3) such sale or use is in the ordinary course of a trade
or business of the taxpayer, and
‘‘(4) the transfer of such mixture to the fuel tank of such
aircraft occurs in the United States.
‘‘(d) SUSTAINABLE AVIATION FUEL.—
‘‘(1) IN GENERAL.—For purposes of this section, the term
‘sustainable aviation fuel’ means liquid fuel, the portion of
which is not kerosene, which—
‘‘(A) meets the requirements of—
‘‘(i) ASTM International Standard D7566, or
‘‘(ii) the Fischer Tropsch provisions of ASTM Inter-
national Standard D1655, Annex A1,
‘‘(B) is not derived from coprocessing an applicable
material (or materials derived from an applicable material)
with a feedstock which is not biomass,
‘‘(C) is not derived from palm fatty acid distillates
or petroleum, and
‘‘(D) has been certified in accordance with subsection
(e) as having a lifecycle greenhouse gas emissions reduction
percentage of at least 50 percent.
‘‘(2) DEFINITIONS.—In this subsection—
‘‘(A) APPLICABLE MATERIAL.—The term ‘applicable
material’ means—
‘‘(i) monoglycerides, diglycerides, and triglycerides,
‘‘(ii) free fatty acids, and
‘‘(iii) fatty acid esters.
‘‘(B) BIOMASS.—The term ‘biomass’ has the same
meaning given such term in section 45K(c)(3).
‘‘(e) LIFECYCLE GREENHOUSE GAS EMISSIONS REDUCTION
PERCENTAGE.—For purposes of this section, the term ‘lifecycle
greenhouse gas emissions reduction percentage’ means, with respect
to any sustainable aviation fuel, the percentage reduction in lifecycle
greenhouse gas emissions achieved by such fuel as compared with
petroleum-based jet fuel, as defined in accordance with—
‘‘(1) the most recent Carbon Offsetting and Reduction
Scheme for International Aviation which has been adopted
by the International Civil Aviation Organization with the agree-
ment of the United States, or
‘‘(2) any similar methodology which satisfies the criteria
under section 211(o)(1)(H) of the Clean Air Act (42 U.S.C.
H. R. 5376—117
7545(o)(1)(H)), as in effect on the date of enactment of this
section.
‘‘(f) REGISTRATION OF SUSTAINABLE AVIATION FUEL PRO-
DUCERS.—No credit shall be allowed under this section with respect
to any sustainable aviation fuel unless the producer or importer
of such fuel—
‘‘(1) is registered with the Secretary under section 4101,
and
‘‘(2) provides—
‘‘(A) certification (in such form and manner as the
Secretary shall prescribe) from an unrelated party dem-
onstrating compliance with—
‘‘(i) any general requirements, supply chain
traceability requirements, and information trans-
mission requirements established under the Carbon
Offsetting and Reduction Scheme for International
Aviation described in paragraph (1) of subsection (e),
or
‘‘(ii) in the case of any methodology established
under paragraph (2) of such subsection, requirements
similar to the requirements described in clause (i),
and
‘‘(B) such other information with respect to such fuel
as the Secretary may require for purposes of carrying out
this section.
‘‘(g) COORDINATION WITH CREDIT AGAINST EXCISE TAX.—The
amount of the credit determined under this section with respect
to any sustainable aviation fuel shall, under rules prescribed by
the Secretary, be properly reduced to take into account any benefit
provided with respect to such sustainable aviation fuel solely by
reason of the application of section 6426 or 6427(e).
‘‘(h) TERMINATION.—This section shall not apply to any sale
or use after December 31, 2024.’’.
(b) CREDIT MADE PART OF GENERAL BUSINESS CREDIT.— Section
38(b), as amended by the preceding provisions of this Act, is
amended by striking ‘‘plus’’ at the end of paragraph (33), by striking
the period at the end of paragraph (34) and inserting ‘‘, plus’’,
and by inserting after paragraph (34) the following new paragraph:
‘‘(35) the sustainable aviation fuel credit determined under
section 40B.’’.
(c) COORDINATION WITH BIODIESEL INCENTIVES.—
(1) IN GENERAL.—Section 40A(d)(1) is amended by inserting
‘‘or 40B’’ after ‘‘determined under section 40’’.
(2) CONFORMING AMENDMENT.—Section 40A(f) is amended
by striking paragraph (4).
(d) SUSTAINABLE AVIATION FUEL ADDED TO CREDIT FOR
ALCOHOL FUEL, BIODIESEL, AND ALTERNATIVE FUEL MIXTURES.—
(1) IN GENERAL.—Section 6426 is amended by adding at
the end the following new subsection:
‘‘(k) SUSTAINABLE AVIATION FUEL CREDIT.—
‘‘(1) IN GENERAL.—For purposes of this section, the sustain-
able aviation fuel credit for the taxable year is, with respect
to any sale or use of a qualified mixture, an amount equal
to the product of—
‘‘(A) the number of gallons of sustainable aviation fuel
in such mixture, multiplied by
‘‘(B) the sum of—
H. R. 5376—118
‘‘(i) $1.25, plus
‘‘(ii) the applicable supplementary amount with
respect to such sustainable aviation fuel.
‘‘(2) DEFINITIONS.—Any term used in this subsection which
is also used in section 40B shall have the meaning given
such term by section 40B.
‘‘(3) REGISTRATION REQUIREMENT.—For purposes of this
subsection, rules similar to the rules of section 40B(f) shall
apply.’’.
(2) CONFORMING AMENDMENTS.—
(A) Section 6426 is amended—
(i) in subsection (a)(1), by striking ‘‘and (e)’’ and
inserting ‘‘(e), and (k)’’, and
(ii) in subsection (h), by striking ‘‘under section
40 or 40A’’ and inserting ‘‘under section 40, 40A, or
40B’’.
(B) Section 6427(e) is amended—
(i) in the heading, by striking ‘‘OR ALTERNATIVE
FUEL’’ and inserting, ‘‘ALTERNATIVE FUEL, OR SUSTAIN-
ABLE AVIATION FUEL’’,
(ii) in paragraph (1), by inserting ‘‘or the sustain-
able aviation fuel mixture credit’’ after ‘‘alternative
fuel mixture credit’’, and
(iii) in paragraph (6)—
(I) in subparagraph (C), by striking ‘‘and’’ at
the end,
(II) in subparagraph (D), by striking the period
at the end and inserting ‘‘, and’’, and
(III) by adding at the end the following new
subparagraph:
‘‘(E) any qualified mixture of sustainable aviation fuel
(as defined in section 6426(k)(3)) sold or used after
December 31, 2024.’’.
(C) Section 4101(a)(1) is amended by inserting ‘‘every
person producing or importing sustainable aviation fuel
(as defined in section 40B),’’ before ‘‘and every person pro-
ducing second generation biofuel’’.
(D) The table of sections for subpart D of subchapter
A of chapter 1 is amended by inserting after the item
relating to section 40A the following new item:
‘‘Sec. 40B. Sustainable aviation fuel credit.’’.
(e) AMOUNT OF CREDIT INCLUDED IN GROSS INCOME.—Section
87 is amended by striking ‘‘and’’ in paragraph (1), by striking
the period at the end of paragraph (2) and inserting ‘‘, and’’, and
by adding at the end the following new paragraph:
‘‘(3) the sustainable aviation fuel credit determined with
respect to the taxpayer for the taxable year under section
40B(a).’’.
(f) EFFECTIVE DATE.—The amendments made by this section
shall apply to fuel sold or used after December 31, 2022.
SEC. 13204. CLEAN HYDROGEN.
(a) CREDIT FOR PRODUCTION OF CLEAN HYDROGEN.—
(1) IN GENERAL.—Subpart D of part IV of subchapter A
of chapter 1, as amended by the preceding provisions of this
Act, is amended by adding at the end the following new section:
H. R. 5376—119
‘‘SEC. 45V. CREDIT FOR PRODUCTION OF CLEAN HYDROGEN.
‘‘(a) AMOUNT OF CREDIT.—For purposes of section 38, the clean
hydrogen production credit for any taxable year is an amount
equal to the product of—
‘‘(1) the kilograms of qualified clean hydrogen produced
by the taxpayer during such taxable year at a qualified clean
hydrogen production facility during the 10-year period begin-
ning on the date such facility was originally placed in service,
multiplied by
‘‘(2) the applicable amount (as determined under subsection
(b)) with respect to such hydrogen.
‘‘(b) APPLICABLE AMOUNT.—
‘‘(1) IN GENERAL.—For purposes of subsection (a)(2), the
applicable amount shall be an amount equal to the applicable
percentage of $0.60. If any amount as determined under the
preceding sentence is not a multiple of 0.1 cent, such amount
shall be rounded to the nearest multiple of 0.1 cent.
‘‘(2) APPLICABLE PERCENTAGE.—For purposes of paragraph
(1), the applicable percentage shall be determined as follows:
‘‘(A) In the case of any qualified clean hydrogen which
is produced through a process that results in a lifecycle
greenhouse gas emissions rate of—
‘‘(i) not greater than 4 kilograms of CO2e per kilo-
gram of hydrogen, and
‘‘(ii) not less than 2.5 kilograms of CO2e per kilo-
gram of hydrogen,
the applicable percentage shall be 20 percent.
‘‘(B) In the case of any qualified clean hydrogen which
is produced through a process that results in a lifecycle
greenhouse gas emissions rate of—
‘‘(i) less than 2.5 kilograms of CO2e per kilogram
of hydrogen, and
‘‘(ii) not less than 1.5 kilograms of CO2e per kilo-
gram of hydrogen,
the applicable percentage shall be 25 percent.
‘‘(C) In the case of any qualified clean hydrogen which
is produced through a process that results in a lifecycle
greenhouse gas emissions rate of—
‘‘(i) less than 1.5 kilograms of CO2e per kilogram
of hydrogen, and
‘‘(ii) not less than 0.45 kilograms of CO2e per
kilogram of hydrogen,
the applicable percentage shall be 33.4 percent.
‘‘(D) In the case of any qualified clean hydrogen which
is produced through a process that results in a lifecycle
greenhouse gas emissions rate of less than 0.45 kilograms
of CO2e per kilogram of hydrogen, the applicable percent-
age shall be 100 percent.
‘‘(3) INFLATION ADJUSTMENT.—The $0.60 amount in para-
graph (1) shall be adjusted by multiplying such amount by
the inflation adjustment factor (as determined under section
45(e)(2), determined by substituting ‘2022’ for ‘1992’ in subpara-
graph (B) thereof) for the calendar year in which the qualified
clean hydrogen is produced. If any amount as increased under
the preceding sentence is not a multiple of 0.1 cent, such
amount shall be rounded to the nearest multiple of 0.1 cent.
‘‘(c) DEFINITIONS.—For purposes of this section—
H. R. 5376—120
‘‘(1) LIFECYCLE GREENHOUSE GAS EMISSIONS.—
‘‘(A) IN GENERAL.—Subject to subparagraph (B), the
term ‘lifecycle greenhouse gas emissions’ has the same
meaning given such term under subparagraph (H) of sec-
tion 211(o)(1) of the Clean Air Act (42 U.S.C. 7545(o)(1)),
as in effect on the date of enactment of this section.
‘‘(B) GREET MODEL.—The term ‘lifecycle greenhouse
gas emissions’ shall only include emissions through the
point of production (well-to-gate), as determined under the
most recent Greenhouse gases, Regulated Emissions, and
Energy use in Transportation model (commonly referred
to as the ‘GREET model’) developed by Argonne National
Laboratory, or a successor model (as determined by the
Secretary).
‘‘(2) QUALIFIED CLEAN HYDROGEN.—
‘‘(A) IN GENERAL.—The term ‘qualified clean hydrogen’
means hydrogen which is produced through a process that
results in a lifecycle greenhouse gas emissions rate of not
greater than 4 kilograms of CO2e per kilogram of hydrogen.
‘‘(B) ADDITIONAL REQUIREMENTS.—Such term shall not
include any hydrogen unless—
‘‘(i) such hydrogen is produced—
‘‘(I) in the United States (as defined in section
638(1)) or a possession of the United States (as
defined in section 638(2)),
‘‘(II) in the ordinary course of a trade or busi-
ness of the taxpayer, and
‘‘(III) for sale or use, and
‘‘(ii) the production and sale or use of such
hydrogen is verified by an unrelated party.
‘‘(C) PROVISIONAL EMISSIONS RATE.—In the case of any
hydrogen for which a lifecycle greenhouse gas emissions
rate has not been determined for purposes of this section,
a taxpayer producing such hydrogen may file a petition
with the Secretary for determination of the lifecycle green-
house gas emissions rate with respect to such hydrogen.
‘‘(3) QUALIFIED CLEAN HYDROGEN PRODUCTION FACILITY.—
The term ‘qualified clean hydrogen production facility’ means
a facility—
‘‘(A) owned by the taxpayer,
‘‘(B) which produces qualified clean hydrogen, and
‘‘(C) the construction of which begins before January
1, 2033.
‘‘(d) SPECIAL RULES.—
‘‘(1) TREATMENT OF FACILITIES OWNED BY MORE THAN 1
TAXPAYER.—Rules similar to the rules section 45(e)(3) shall
apply for purposes of this section.
‘‘(2) COORDINATION WITH CREDIT FOR CARBON OXIDE SEQUES-
TRATION.—No credit shall be allowed under this section with
respect to any qualified clean hydrogen produced at a facility
which includes carbon capture equipment for which a credit
is allowed to any taxpayer under section 45Q for the taxable
year or any prior taxable year.
‘‘(e) INCREASED CREDIT AMOUNT FOR QUALIFIED CLEAN
HYDROGEN PRODUCTION FACILITIES.—
‘‘(1) IN GENERAL.—In the case of any qualified clean
hydrogen production facility which satisfies the requirements
H. R. 5376—121
of paragraph (2), the amount of the credit determined under
subsection (a) with respect to qualified clean hydrogen described
in subsection (b)(2) shall be equal to such amount (determined
without regard to this sentence) multiplied by 5.
‘‘(2) REQUIREMENTS.—A facility meets the requirements of
this paragraph if it is one of the following:
‘‘(A) A facility—
‘‘(i) the construction of which begins prior to the
date that is 60 days after the Secretary publishes
guidance with respect to the requirements of para-
graphs (3)(A) and (4), and
‘‘(ii) which meets the requirements of paragraph
(3)(A) with respect to alteration or repair of such
facility which occurs after such date.
‘‘(B) A facility which satisfies the requirements of para-
graphs (3)(A) and (4).
‘‘(3) PREVAILING WAGE REQUIREMENTS.—
‘‘(A) IN GENERAL.—The requirements described in this
subparagraph with respect to any qualified clean hydrogen
production facility are that the taxpayer shall ensure that
any laborers and mechanics employed by the taxpayer or
any contractor or subcontractor in—
‘‘(i) the construction of such facility, and
‘‘(ii) with respect to any taxable year, for any por-
tion of such taxable year which is within the period
described in subsection (a)(2), the alteration or repair
of such facility,
shall be paid wages at rates not less than the prevailing
rates for construction, alteration, or repair of a similar
character in the locality in which such facility is located
as most recently determined by the Secretary of Labor,
in accordance with subchapter IV of chapter 31 of title
40, United States Code. For purposes of determining an
increased credit amount under paragraph (1) for a taxable
year, the requirement under clause (ii) of this subparagraph
is applied to such taxable year in which the alteration
or repair of qualified facility occurs.
‘‘(B) CORRECTION AND PENALTY RELATED TO FAILURE
TO SATISFY WAGE REQUIREMENTS.—Rules similar to the
rules of section 45(b)(7)(B) shall apply.
‘‘(4) APPRENTICESHIP REQUIREMENTS.—Rules similar to the
rules of section 45(b)(8) shall apply.
‘‘(5) REGULATIONS AND GUIDANCE.—The Secretary shall
issue such regulations or other guidance as the Secretary deter-
mines necessary to carry out the purposes of this subsection,
including regulations or other guidance which provides for
requirements for recordkeeping or information reporting for
purposes of administering the requirements of this subsection.
‘‘(f) REGULATIONS.—Not later than 1 year after the date of
enactment of this section, the Secretary shall issue regulations
or other guidance to carry out the purposes of this section, including
regulations or other guidance for determining lifecycle greenhouse
gas emissions.’’.
(2) CREDIT REDUCED FOR TAX-EXEMPT BONDS.—Section
45V(d), as added by this section, is amended by adding at
the end the following new paragraph:
H. R. 5376—122
‘‘(3) CREDIT REDUCED FOR TAX-EXEMPT BONDS.—Rules
similar to the rule under section 45(b)(3) shall apply for pur-
poses of this section.’’.
(3) MODIFICATION OF EXISTING FACILITIES.—Section 45V(d),
as added and amended by the preceding provisions of this
section, is amended by adding at the end the following new
paragraph:
‘‘(4) MODIFICATION OF EXISTING FACILITIES.—For purposes
of subsection (a)(1), in the case of any facility which—
‘‘(A) was originally placed in service before January
1, 2023, and, prior to the modification described in subpara-
graph (B), did not produce qualified clean hydrogen, and
‘‘(B) after the date such facility was originally placed
in service—
‘‘(i) is modified to produce qualified clean hydrogen,
and
‘‘(ii) amounts paid or incurred with respect to such
modification are properly chargeable to capital account
of the taxpayer,
such facility shall be deemed to have been originally placed
in service as of the date that the property required to complete
the modification described in subparagraph (B) is placed in
service.’’.
(4) CONFORMING AMENDMENTS.—
(A) Section 38(b), as amended by the preceding provi-
sions of this Act, is amended—
(i) in paragraph (34), by striking ‘‘plus’’ at the
end,
(ii) in paragraph (35), by striking the period at
the end and inserting ‘‘, plus’’, and
(iii) by adding at the end the following new para-
graph:
‘‘(36) the clean hydrogen production credit determined
under section 45V(a).’’.
(B) The table of sections for subpart D of part IV
of subchapter A of chapter 1, as amended by the preceding
provisions of this Act, is amended by adding at the end
the following new item:
‘‘Sec. 45V. Credit for production of clean hydrogen.’’.
(5) EFFECTIVE DATES.—
(A) IN GENERAL.—The amendments made by para-
graphs (1) and (4) of this subsection shall apply to hydrogen
produced after December 31, 2022.
(B) CREDIT REDUCED FOR TAX-EXEMPT BONDS.—The
amendment made by paragraph (2) shall apply to facilities
the construction of which begins after the date of enactment
of this Act.
(C) MODIFICATION OF EXISTING FACILITIES.—The
amendment made by paragraph (3) shall apply to modifica-
tions made after December 31, 2022.
(b) CREDIT FOR ELECTRICITY PRODUCED FROM RENEWABLE
RESOURCES ALLOWED IF ELECTRICITY IS USED TO PRODUCE CLEAN
HYDROGEN.—
(1) IN GENERAL.—Section 45(e), as amended by the pre-
ceding provisions of this Act, is amended by adding at the
end the following new paragraph:
H. R. 5376—123
‘‘(13) SPECIAL RULE FOR ELECTRICITY USED AT A QUALIFIED
CLEAN HYDROGEN PRODUCTION FACILITY.—Electricity produced
by the taxpayer shall be treated as sold by such taxpayer
to an unrelated person during the taxable year if—
‘‘(A) such electricity is used during such taxable year
by the taxpayer or a person related to the taxpayer at
a qualified clean hydrogen production facility (as defined
in section 45V(c)(3)) to produce qualified clean hydrogen
(as defined in section 45V(c)(2)), and
‘‘(B) such use and production is verified (in such form
or manner as the Secretary may prescribe) by an unrelated
third party.’’.
(2) SIMILAR RULE FOR ZERO-EMISSION NUCLEAR POWER
PRODUCTION CREDIT.—Subsection (c)(2) of section 45U, as added
by section 13105 of this Act, is amended by striking ‘‘and
(5)’’ and inserting ‘‘(5), and (13)’’.
(3) EFFECTIVE DATE.—The amendments made by this sub-
section shall apply to electricity produced after December 31,
2022.
(c) ELECTION TO TREAT CLEAN HYDROGEN PRODUCTION FACILI-
TIES AS ENERGY PROPERTY.—
(1) IN GENERAL.—Section 48(a), as amended by the pre-
ceding provisions of this Act, is amended—
(A) by redesignating paragraph (15) as paragraph (16),
and
(B) by inserting after paragraph (14) the following
new paragraph:
‘‘(15) ELECTION TO TREAT CLEAN HYDROGEN PRODUCTION
FACILITIES AS ENERGY PROPERTY.—
‘‘(A) IN GENERAL.—In the case of any qualified property
(as defined in paragraph (5)(D)) which is part of a specified
clean hydrogen production facility—
‘‘(i) such property shall be treated as energy prop-
erty for purposes of this section, and
‘‘(ii) the energy percentage with respect to such
property is—
‘‘(I) in the case of a facility which is designed
and reasonably expected to produce qualified clean
hydrogen which is described in a subparagraph
(A) of section 45V(b)(2), 1.2 percent,
‘‘(II) in the case of a facility which is designed
and reasonably expected to produce qualified clean
hydrogen which is described in a subparagraph
(B) of such section, 1.5 percent,
‘‘(III) in the case of a facility which is designed
and reasonably expected to produce qualified clean
hydrogen which is described in a subparagraph
(C) of such section, 2 percent, and
‘‘(IV) in the case of a facility which is designed
and reasonably expected to produce qualified clean
hydrogen which is described in subparagraph (D)
of such section, 6 percent.
‘‘(B) DENIAL OF PRODUCTION CREDIT.—No credit shall
be allowed under section 45V or section 45Q for any taxable
year with respect to any specified clean hydrogen produc-
tion facility or any carbon capture equipment included
at such facility.
H. R. 5376—124
‘‘(C) SPECIFIED CLEAN HYDROGEN PRODUCTION
FACILITY.—For purposes of this paragraph, the term ‘speci-
fied clean hydrogen production facility’ means any qualified
clean hydrogen production facility (as defined in section
45V(c)(3))—
‘‘(i) which is placed in service after December 31,
2022,
‘‘(ii) with respect to which—
‘‘(I) no credit has been allowed under section
45V or 45Q, and
‘‘(II) the taxpayer makes an irrevocable elec-
tion to have this paragraph apply, and
‘‘(iii) for which an unrelated third party has
verified (in such form or manner as the Secretary
may prescribe) that such facility produces hydrogen
through a process which results in lifecycle greenhouse
gas emissions which are consistent with the hydrogen
that such facility was designed and expected to produce
under subparagraph (A)(ii).
‘‘(D) QUALIFIED CLEAN HYDROGEN.—For purposes of
this paragraph, the term ‘qualified clean hydrogen’ has
the meaning given such term by section 45V(c)(2).
‘‘(E) REGULATIONS.—The Secretary shall issue such
regulations or other guidance as the Secretary determines
necessary to carry out the purposes of this section,
including regulations or other guidance which recaptures
so much of any credit allowed under this section as exceeds
the amount of the credit which would have been allowed
if the expected production were consistent with the actual
verified production (or all of the credit so allowed in the
absence of such verification).’’.
(2) CONFORMING AMENDMENT.—Paragraph (9)(A)(i) of sec-
tion 48(a), as added by section 13102, is amended by inserting
‘‘and paragraph (15)’’ after ‘‘paragraphs (1) through (8)’’.
(3) EFFECTIVE DATE.—The amendments made by this sub-
section shall apply to property placed in service after December
31, 2022, and, for any property the construction of which begins
prior to January 1, 2023, only to the extent of the basis thereof
attributable to the construction, reconstruction, or erection after
December 31, 2022.
(d) TERMINATION OF EXCISE TAX CREDIT FOR HYDROGEN.—
(1) IN GENERAL.—Section 6426(d)(2) is amended by striking
subparagraph (D) and by redesignating subparagraphs (E), (F),
and (G) as subparagraphs (D), (E), and (F), respectively.
(2) CONFORMING AMENDMENT.—Section 6426(e)(2) is
amended by striking ‘‘(F)’’ and inserting ‘‘(E)’’.
(3) EFFECTIVE DATE.—The amendments made by this sub-
section shall apply to fuel sold or used after December 31,
2022.
PART 3—CLEAN ENERGY AND EFFICIENCY
INCENTIVES FOR INDIVIDUALS
SEC. 13301. EXTENSION, INCREASE, AND MODIFICATIONS OF NONBUSI-
NESS ENERGY PROPERTY CREDIT.
(a) EXTENSION OF CREDIT.—Section 25C(g)(2) is amended by
striking ‘‘December 31, 2021’’ and inserting ‘‘December 31, 2032’’.
H. R. 5376—125
(b) ALLOWANCE OF CREDIT.—Section 25C(a) is amended to read
as follows:
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an individual, there
shall be allowed as a credit against the tax imposed by this chapter
for the taxable year an amount equal to 30 percent of the sum
of—
‘‘(1) the amount paid or incurred by the taxpayer for quali-
fied energy efficiency improvements installed during such tax-
able year, and
‘‘(2) the amount of the residential energy property expendi-
tures paid or incurred by the taxpayer during such taxable
year.’’.
(c) APPLICATION OF ANNUAL LIMITATION IN LIEU OF LIFETIME
LIMITATION.—Section 25C(b) is amended to read as follows:
‘‘(b) LIMITATIONS.—
‘‘(1) IN GENERAL.—The credit allowed under this section
with respect to any taxpayer for any taxable year shall not
exceed $1,200.
‘‘(2) ENERGY PROPERTY.—The credit allowed under this sec-
tion by reason of subsection (a)(2) with respect to any taxpayer
for any taxable year shall not exceed, with respect to any
item of qualified energy property, $600.
‘‘(3) WINDOWS.—The credit allowed under this section by
reason of subsection (a)(1) with respect to any taxpayer for
any taxable year shall not exceed, in the aggregate with respect
to all exterior windows and skylights, $600.
‘‘(4) DOORS.—The credit allowed under this section by rea-
son of subsection (a)(1) with respect to any taxpayer for any
taxable year shall not exceed—
‘‘(A) $250 in the case of any exterior door, and
‘‘(B) $500 in the aggregate with respect to all exterior
doors.
‘‘(5) HEAT PUMP AND HEAT PUMP WATER HEATERS; BIOMASS
STOVES AND BOILERS.—Notwithstanding paragraphs (1) and (2),
the credit allowed under this section by reason of subsection
(a)(2) with respect to any taxpayer for any taxable year shall
not, in the aggregate, exceed $2,000 with respect to amounts
paid or incurred for property described in clauses (i) and (ii)
of subsection (d)(2)(A) and in subsection (d)(2)(B).’’.
(d) MODIFICATIONS RELATED TO QUALIFIED ENERGY EFFICIENCY
IMPROVEMENTS.—
(1) STANDARDS FOR ENERGY EFFICIENT BUILDING ENVELOPE
COMPONENTS.—Section 25C(c)(2) is amended by striking
‘‘meets—’’ and all that follows through the period at the end
and inserting the following: ‘‘meets—
‘‘(A) in the case of an exterior window or skylight,
Energy Star most efficient certification requirements,
‘‘(B) in the case of an exterior door, applicable Energy
Star requirements, and
‘‘(C) in the case of any other component, the prescrip-
tive criteria for such component established by the most
recent International Energy Conservation Code standard
in effect as of the beginning of the calendar year which
is 2 years prior to the calendar year in which such compo-
nent is placed in service.’’.
(2) ROOFS NOT TREATED AS BUILDING ENVELOPE COMPO-
NENTS.—Section 25C(c)(3) is amended by adding ‘‘and’’ at the
H. R. 5376—126
end of subparagraph (B), by striking ‘‘, and’’ at the end of
subparagraph (C) and inserting a period, and by striking
subparagraph (D).
(3) AIR SEALING INSULATION ADDED TO DEFINITION OF
BUILDING ENVELOPE COMPONENT.—Section 25C(c)(3)(A) is
amended by inserting ‘‘, including air sealing material or
system,’’ after ‘‘material or system’’.
(e) MODIFICATION OF RESIDENTIAL ENERGY PROPERTY EXPENDI-
TURES.—Section 25C(d) is amended to read as follows:
‘‘(d) RESIDENTIAL ENERGY PROPERTY EXPENDITURES.—For pur-
poses of this section—
‘‘(1) IN GENERAL.—The term ‘residential energy property
expenditures’ means expenditures made by the taxpayer for
qualified energy property which is—
‘‘(A) installed on or in connection with a dwelling unit
located in the United States and used as a residence by
the taxpayer, and
‘‘(B) originally placed in service by the taxpayer.
Such term includes expenditures for labor costs properly allo-
cable to the onsite preparation, assembly, or original installa-
tion of the property.
‘‘(2) QUALIFIED ENERGY PROPERTY.—The term ‘qualified
energy property’ means any of the following:
‘‘(A) Any of the following which meet or exceed the
highest efficiency tier (not including any advanced tier)
established by the Consortium for Energy Efficiency which
is in effect as of the beginning of the calendar year in
which the property is placed in service:
‘‘(i) An electric or natural gas heat pump water
heater.
‘‘(ii) An electric or natural gas heat pump.
‘‘(iii) A central air conditioner.
‘‘(iv) A natural gas, propane, or oil water heater.
‘‘(v) A natural gas, propane, or oil furnace or hot
water boiler.
‘‘(B) A biomass stove or boiler which—
‘‘(i) uses the burning of biomass fuel to heat a
dwelling unit located in the United States and used
as a residence by the taxpayer, or to heat water for
use in such a dwelling unit, and
‘‘(ii) has a thermal efficiency rating of at least
75 percent (measured by the higher heating value of
the fuel).
‘‘(C) Any oil furnace or hot water boiler which—
‘‘(i) is placed in service after December 31, 2022,
and before January 1, 2027, and—
‘‘(I) meets or exceeds 2021 Energy Star effi-
ciency criteria, and
‘‘(II) is rated by the manufacturer for use with
fuel blends at least 20 percent of the volume of
which consists of an eligible fuel, or
‘‘(ii) is placed in service after December 31, 2026,
and—
‘‘(I) achieves an annual fuel utilization effi-
ciency rate of not less than 90, and
H. R. 5376—127
‘‘(II) is rated by the manufacturer for use with
fuel blends at least 50 percent of the volume of
which consists of an eligible fuel.
‘‘(D) Any improvement to, or replacement of, a panel-
board, sub-panelboard, branch circuits, or feeders which—
‘‘(i) is installed in a manner consistent with the
National Electric Code,
‘‘(ii) has a load capacity of not less than 200 amps,
‘‘(iii) is installed in conjunction with—
‘‘(I) any qualified energy efficiency improve-
ments, or
‘‘(II) any qualified energy property described
in subparagraphs (A) through (C) for which a credit
is allowed under this section for expenditures with
respect to such property, and
‘‘(iv) enables the installation and use of any prop-
erty described in subclause (I) or (II) of clause (iii).
‘‘(3) ELIGIBLE FUEL.—For purposes of paragraph (2), the
term ‘eligible fuel’ means—
‘‘(A) biodiesel and renewable diesel (within the meaning
of section 40A), and
‘‘(B) second generation biofuel (within the meaning
of section 40).’’.
(f) HOME ENERGY AUDITS.—
(1) IN GENERAL.—Section 25C(a), as amended by subsection
(b), is amended by striking ‘‘and’’ at the end of paragraph
(1), by striking the period at the end of paragraph (2) and
inserting ‘‘, and’’, and by adding at the end the following new
paragraph:
‘‘(3) the amount paid or incurred by the taxpayer during
the taxable year for home energy audits.’’.
(2) LIMITATION.—Section 25C(b), as amended by subsection
(c), is amended adding at the end the following new paragraph:
‘‘(6) HOME ENERGY AUDITS.—
‘‘(A) DOLLAR LIMITATION.—The amount of the credit
allowed under this section by reason of subsection (a)(3)
shall not exceed $150.
‘‘(B) SUBSTANTIATION REQUIREMENT.—No credit shall
be allowed under this section by reason of subsection (a)(3)
unless the taxpayer includes with the taxpayer’s return
of tax such information or documentation as the Secretary
may require.’’.
(3) HOME ENERGY AUDITS.—
(A) IN GENERAL.—Section 25C is amended by redesig-
nating subsections (e), (f), and (g), as subsections (f), (g),
and (h), respectively, and by inserting after subsection
(d) the following new subsection:
‘‘(e) HOME ENERGY AUDITS.—For purposes of this section, the
term ‘home energy audit’ means an inspection and written report
with respect to a dwelling unit located in the United States and
owned or used by the taxpayer as the taxpayer’s principal residence
(within the meaning of section 121) which—
‘‘(1) identifies the most significant and cost-effective energy
efficiency improvements with respect to such dwelling unit,
including an estimate of the energy and cost savings with
respect to each such improvement, and
H. R. 5376—128
‘‘(2) is conducted and prepared by a home energy auditor
that meets the certification or other requirements specified
by the Secretary in regulations or other guidance (as prescribed
by the Secretary not later than 365 days after the date of
the enactment of this subsection).’’.
(B) CONFORMING AMENDMENT.—Section 1016(a)(33) is
amended by striking ‘‘section 25C(f)’’ and inserting ‘‘section
25C(g)’’.
(4) LACK OF SUBSTANTIATION TREATED AS MATHEMATICAL
OR CLERICAL ERROR.—Section 6213(g)(2) is amended—
(A) in subparagraph (P), by striking ‘‘and’’ at the end,
(B) in subparagraph (Q), by striking the period at
the end and inserting ‘‘, and’’, and
(C) by inserting after subparagraph (Q) the following:
‘‘(R) an omission of information or documentation
required under section 25C(b)(6)(B) (relating to home
energy audits) to be included on a return.’’.
(g) IDENTIFICATION NUMBER REQUIREMENT.—
(1) IN GENERAL.—Section 25C, as amended by this section,
is amended by redesignating subsection (h) as subsection (i)
and by inserting after subsection (g) the following new sub-
section:
‘‘(h) PRODUCT IDENTIFICATION NUMBER REQUIREMENT.—
‘‘(1) IN GENERAL.—No credit shall be allowed under sub-
section (a) with respect to any item of specified property placed
in service after December 31, 2024, unless—
‘‘(A) such item is produced by a qualified manufacturer,
and
‘‘(B) the taxpayer includes the qualified product identi-
fication number of such item on the return of tax for
the taxable year.
‘‘(2) QUALIFIED PRODUCT IDENTIFICATION NUMBER.—For
purposes of this section, the term ‘qualified product identifica-
tion number’ means, with respect to any item of specified
property, the product identification number assigned to such
item by the qualified manufacturer pursuant to the method-
ology referred to in paragraph (3).
‘‘(3) QUALIFIED MANUFACTURER.—For purposes of this sec-
tion, the term ‘qualified manufacturer’ means any manufacturer
of specified property which enters into an agreement with the
Secretary which provides that such manufacturer will—
‘‘(A) assign a product identification number to each
item of specified property produced by such manufacturer
utilizing a methodology that will ensure that such number
(including any alphanumeric) is unique to each such item
(by utilizing numbers or letters which are unique to such
manufacturer or by such other method as the Secretary
may provide),
‘‘(B) label such item with such number in such manner
as the Secretary may provide, and
‘‘(C) make periodic written reports to the Secretary
(at such times and in such manner as the Secretary may
provide) of the product identification numbers so assigned
and including such information as the Secretary may
require with respect to the item of specified property to
which such number was so assigned.
H. R. 5376—129
‘‘(4) SPECIFIED PROPERTY.—For purposes of this subsection,
the term ‘specified property’ means any qualified energy prop-
erty and any property described in subparagraph (B) or (C)
of subsection (c)(3).’’.
(2) OMISSION OF CORRECT PRODUCT IDENTIFICATION NUMBER
TREATED AS MATHEMATICAL OR CLERICAL ERROR.—Section
6213(g)(2), as amended by the preceding provisions of this
Act, is amended—
(A) in subparagraph (Q), by striking ‘‘and’’ at the end,
(B) in subparagraph (R), by striking the period at
the end and inserting ‘‘, and’’, and
(C) by inserting after subparagraph (R) the following:
‘‘(S) an omission of a correct product identification
number required under section 25C(h) (relating to credit
for nonbusiness energy property) to be included on a
return.’’.
(h) ENERGY EFFICIENT HOME IMPROVEMENT CREDIT.—
(1) IN GENERAL.—The heading for section 25C is amended
by striking ‘‘NONBUSINESS ENERGY PROPERTY’’ and inserting
‘‘ENERGY EFFICIENT HOME IMPROVEMENT CREDIT’’.
(2) CLERICAL AMENDMENT.—The table of sections for sub-
part A of part IV of subchapter A of chapter 1 is amended
by striking the item relating to section 25C and inserting
after the item relating to section 25B the following item:
‘‘Sec. 25C. Energy efficient home improvement credit.’’.
(i) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as otherwise provided by this
subsection, the amendments made by this section shall apply
to property placed in service after December 31, 2022.
(2) EXTENSION OF CREDIT.—The amendments made by sub-
section (a) shall apply to property placed in service after
December 31, 2021.
(3) IDENTIFICATION NUMBER REQUIREMENT.—The amend-
ments made by subsection (g) shall apply to property placed
in service after December 31, 2024.
SEC. 13302. RESIDENTIAL CLEAN ENERGY CREDIT.
(a) EXTENSION OF CREDIT.—
(1) IN GENERAL.—Section 25D(h) is amended by striking
‘‘December 31, 2023’’ and inserting ‘‘December 31, 2034’’.
(2) APPLICATION OF PHASEOUT.—Section 25D(g) is
amended—
(A) in paragraph (2), by striking ‘‘before January 1,
2023, 26 percent, and’’ and inserting ‘‘before January 1,
2022, 26 percent,’’, and
(B) by striking paragraph (3) and by inserting after
paragraph (2) the following new paragraphs:
‘‘(3) in the case of property placed in service after December
31, 2021, and before January 1, 2033, 30 percent,
‘‘(4) in the case of property placed in service after December
31, 2032, and before January 1, 2034, 26 percent, and
‘‘(5) in the case of property placed in service after December
31, 2033, and before January 1, 2035, 22 percent.’’.
(b) RESIDENTIAL CLEAN ENERGY CREDIT FOR BATTERY STORAGE
TECHNOLOGY; CERTAIN EXPENDITURES DISALLOWED.—
(1) ALLOWANCE OF CREDIT.—Paragraph (6) of section 25D(a)
is amended to read as follows:
H. R. 5376—130
‘‘(6) the qualified battery storage technology expenditures,’’.
(2) DEFINITION OF QUALIFIED BATTERY STORAGE TECH-
NOLOGY EXPENDITURE.—Paragraph (6) of section 25D(d) is
amended to read as follows:
‘‘(6) QUALIFIED BATTERY STORAGE TECHNOLOGY EXPENDI-
TURE.—The term ‘qualified battery storage technology expendi-
ture’ means an expenditure for battery storage technology
which—
‘‘(A) is installed in connection with a dwelling unit
located in the United States and used as a residence by
the taxpayer, and
‘‘(B) has a capacity of not less than 3 kilowatt hours.’’.
(c) CONFORMING AMENDMENTS.—
(1) Section 25D(d)(3) is amended by inserting ‘‘, without
regard to subparagraph (D) thereof’’ after ‘‘section 48(c)(1)’’.
(2) The heading for section 25D is amended by striking
‘‘ENERGY EFFICIENT PROPERTY’’ and inserting ‘‘CLEAN ENERGY
CREDIT’’.
(3) The table of sections for subpart A of part IV of sub-
chapter A of chapter 1 is amended by striking the item relating
to section 25D and inserting the following:
‘‘Sec. 25D. Residential clean energy credit.’’.
(d) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided in paragraph (2), the
amendments made by this section shall apply to expenditures
made after December 31, 2021.
(2) RESIDENTIAL CLEAN ENERGY CREDIT FOR BATTERY STOR-
AGE TECHNOLOGY; CERTAIN EXPENDITURES DISALLOWED.—The
amendments made by subsection (b) shall apply to expenditures
made after December 31, 2022.
SEC. 13303. ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.
(a) IN GENERAL.—
(1) MAXIMUM AMOUNT OF DEDUCTION.—Subsection (b) of
section 179D is amended to read as follows:
‘‘(b) MAXIMUM AMOUNT OF DEDUCTION.—
‘‘(1) IN GENERAL.—The deduction under subsection (a) with
respect to any building for any taxable year shall not exceed
the excess (if any) of—
‘‘(A) the product of—
‘‘(i) the applicable dollar value, and
‘‘(ii) the square footage of the building, over
‘‘(B) the aggregate amount of the deductions under
subsections (a) and (f) with respect to the building for
the 3 taxable years immediately preceding such taxable
year (or, in the case of any such deduction allowable to
a person other than the taxpayer, for any taxable year
ending during the 4-taxable-year period ending with such
taxable year).
‘‘(2) APPLICABLE DOLLAR VALUE.—For purposes of para-
graph (1)(A)(i), the applicable dollar value shall be an amount
equal to $0.50 increased (but not above $1.00) by $0.02 for
each percentage point by which the total annual energy and
power costs for the building are certified to be reduced by
a percentage greater than 25 percent.
‘‘(3) INCREASED DEDUCTION AMOUNT FOR CERTAIN PROP-
ERTY.—
H. R. 5376—131
‘‘(A) IN GENERAL.—In the case of any property which
satisfies the requirements of subparagraph (B), paragraph
(2) shall be applied by substituting ‘$2.50’ for ‘$0.50’, ‘$.10’
for ‘$.02’, and ‘$5.00’ for ‘$1.00’.
‘‘(B) PROPERTY REQUIREMENTS.—In the case of any
energy efficient commercial building property, energy effi-
cient building retrofit property, or property installed pursu-
ant to a qualified retrofit plan, such property shall meet
the requirements of this subparagraph if —
‘‘(i) installation of such property begins prior to
the date that is 60 days after the Secretary publishes
guidance with respect to the requirements of para-
graphs (4)(A) and (5), or
‘‘(ii) installation of such property satisfies the
requirements of paragraphs (4)(A) and (5).
‘‘(4) PREVAILING WAGE REQUIREMENTS.—
‘‘(A) IN GENERAL.—The requirements described in this
subparagraph with respect to any property are that the
taxpayer shall ensure that any laborers and mechanics
employed by the taxpayer or any contractor or subcon-
tractor in the installation of any property shall be paid
wages at rates not less than the prevailing rates for
construction, alteration, or repair of a similar character
in the locality in which such property is located as most
recently determined by the Secretary of Labor, in accord-
ance with subchapter IV of chapter 31 of title 40, United
States Code.
‘‘(B) CORRECTION AND PENALTY RELATED TO FAILURE
TO SATISFY WAGE REQUIREMENTS.—Rules similar to the
rules of section 45(b)(7)(B) shall apply.
‘‘(5) APPRENTICESHIP REQUIREMENTS.—Rules similar to the
rules of section 45(b)(8) shall apply.
‘‘(6) REGULATIONS.—The Secretary shall issue such regula-
tions or other guidance as the Secretary determines necessary
to carry out the purposes of this subsection, including regula-
tions or other guidance which provides for requirements for
recordkeeping or information reporting for purposes of admin-
istering the requirements of this subsection.’’.
(2) MODIFICATION OF EFFICIENCY STANDARD.—Section
179D(c)(1)(D) is amended by striking ‘‘50 percent’’ and inserting
‘‘25 percent’’.
(3) REFERENCE STANDARD.—Section 179D(c)(2) is amended
by striking ‘‘the most recent’’ and inserting the following: ‘‘the
more recent of—
‘‘(A) Standard 90.1-2007 published by the American
Society of Heating, Refrigerating, and Air Conditioning
Engineers and the Illuminating Engineering Society of
North America, or
‘‘(B) the most recent’’.
(4) FINAL DETERMINATION; EXTENSION OF PERIOD; PLACED
IN SERVICE DEADLINE.—Subparagraph (B) of section 179D(c)(2),
as amended by paragraph (3), is amended—
(A) by inserting ‘‘for which the Department of Energy
has issued a final determination and’’ before ‘‘which has
been affirmed’’,
(B) by striking ‘‘2 years’’ and inserting ‘‘4 years’’, and
H. R. 5376—132
(C) by striking ‘‘that construction of such property
begins’’ and inserting ‘‘such property is placed in service’’.
(5) ELIMINATION OF PARTIAL ALLOWANCE.—
(A) IN GENERAL.—Section 179D(d) is amended—
(i) by striking paragraph (1), and
(ii) by redesignating paragraphs (2) through (6)
as paragraphs (1) through (5), respectively.
(B) CONFORMING AMENDMENTS.—
(i) Section 179D(c)(1)(D) is amended—
(I) by striking ‘‘subsection (d)(6)’’ and inserting
‘‘subsection (d)(5)’’, and
(II) by striking ‘‘subsection (d)(2)’’ and
inserting ‘‘subsection (d)(1)’’.
(ii) Paragraph (2)(A) of section 179D(d), as redesig-
nated by subparagraph (A), is amended by striking
‘‘paragraph (2)’’ and inserting ‘‘paragraph (1)’’.
(iii) Paragraph (4) of section 179D(d), as redesig-
nated by subparagraph (A), is amended by striking
‘‘paragraph (3)(B)(iii)’’ and inserting ‘‘paragraph
(2)(B)(iii)’’.
(iv) Section 179D is amended by striking sub-
section (f).
(v) Section 179D(h) is amended by striking ‘‘or
(d)(1)(A)’’.
(6) ALLOCATION OF DEDUCTION BY CERTAIN TAX-EXEMPT
ENTITIES.—Paragraph (3) of section 179D(d), as redesignated
by paragraph (5)(A), is amended to read as follows:
‘‘(3) ALLOCATION OF DEDUCTION BY CERTAIN TAX-EXEMPT
ENTITIES.—
‘‘(A) IN GENERAL.—In the case of energy efficient
commercial building property installed on or in property
owned by a specified tax-exempt entity, the Secretary shall
promulgate regulations or guidance to allow the allocation
of the deduction to the person primarily responsible for
designing the property in lieu of the owner of such property.
Such person shall be treated as the taxpayer for purposes
of this section.
‘‘(B) SPECIFIED TAX-EXEMPT ENTITY.—For purposes of
this paragraph, the term ‘specified tax-exempt entity’
means—
‘‘(i) the United States, any State or political sub-
division thereof, any possession of the United States,
or any agency or instrumentality of any of the fore-
going,
‘‘(ii) an Indian tribal government (as defined in
section 30D(g)(9)) or Alaska Native Corporation (as
defined in section 3 of the Alaska Native Claims Settle-
ment Act (43 U.S.C. 1602(m)), and
‘‘(iii) any organization exempt from tax imposed
by this chapter.’’.
(7) ALTERNATIVE DEDUCTION FOR ENERGY EFFICIENT
BUILDING RETROFIT PROPERTY.—Section 179D, as amended by
the preceding provisions of this section, is amended by inserting
after subsection (e) the following new subsection:
‘‘(f) ALTERNATIVE DEDUCTION FOR ENERGY EFFICIENT BUILDING
RETROFIT PROPERTY.—
H. R. 5376—133
‘‘(1) IN GENERAL.—In the case of a taxpayer which elects
(at such time and in such manner as the Secretary may provide)
the application of this subsection with respect to any qualified
building, there shall be allowed as a deduction for the taxable
year which includes the date of the qualifying final certification
with respect to the qualified retrofit plan of such building,
an amount equal to the lesser of—
‘‘(A) the excess described in subsection (b) (determined
by substituting ‘energy use intensity’ for ‘total annual
energy and power costs’ in paragraph (2) thereof), or
‘‘(B) the aggregate adjusted basis (determined after
taking into account all adjustments with respect to such
taxable year other than the reduction under subsection
(e)) of energy efficient building retrofit property placed
in service by the taxpayer pursuant to such qualified ret-
rofit plan.
‘‘(2) QUALIFIED RETROFIT PLAN.—For purposes of this sub-
section, the term ‘qualified retrofit plan’ means a written plan
prepared by a qualified professional which specifies modifica-
tions to a building which, in the aggregate, are expected to
reduce such building’s energy use intensity by 25 percent or
more in comparison to the baseline energy use intensity of
such building. Such plan shall provide for a qualified profes-
sional to—
‘‘(A) as of any date during the 1-year period ending
on the date on which the property installed pursuant to
such plan is placed in service, certify the energy use inten-
sity of such building as of such date,
‘‘(B) certify the status of property installed pursuant
to such plan as meeting the requirements of subparagraphs
(B) and (C) of paragraph (3), and
‘‘(C) as of any date that is more than 1 year after
the date on which the property installed pursuant to such
plan is placed in service, certify the energy use intensity
of such building as of such date.
‘‘(3) ENERGY EFFICIENT BUILDING RETROFIT PROPERTY.—For
purposes of this subsection, the term ‘energy efficient building
retrofit property’ means property—
‘‘(A) with respect to which depreciation (or amortization
in lieu of depreciation) is allowable,
‘‘(B) which is installed on or in any qualified building,
‘‘(C) which is installed as part of—
‘‘(i) the interior lighting systems,
‘‘(ii) the heating, cooling, ventilation, and hot water
systems, or
‘‘(iii) the building envelope, and
‘‘(D) which is certified in accordance with paragraph
(2)(B) as meeting the requirements of subparagraphs (B)
and (C).
‘‘(4) QUALIFIED BUILDING.—For purposes of this subsection,
the term ‘qualified building’ means any building which—
‘‘(A) is located in the United States, and
‘‘(B) was originally placed in service not less than
5 years before the establishment of the qualified retrofit
plan with respect to such building.
‘‘(5) QUALIFYING FINAL CERTIFICATION.—For purposes of
this subsection, the term ‘qualifying final certification’ means,
H. R. 5376—134
with respect to any qualified retrofit plan, the certification
described in paragraph (2)(C) if the energy use intensity cer-
tified in such certification is not more than 75 percent of
the baseline energy use intensity of the building.
‘‘(6) BASELINE ENERGY USE INTENSITY.—
‘‘(A) IN GENERAL.—For purposes of this subsection, the
term ‘baseline energy use intensity’ means the energy use
intensity certified under paragraph (2)(A), as adjusted to
take into account weather.
‘‘(B) DETERMINATION OF ADJUSTMENT.—For purposes
of subparagraph (A), the adjustments described in such
subparagraph shall be determined in such manner as the
Secretary may provide.
‘‘(7) OTHER DEFINITIONS.—For purposes of this subsection—
‘‘(A) ENERGY USE INTENSITY.—The term ‘energy use
intensity’ means the annualized, measured site energy use
intensity determined in accordance with such regulations
or other guidance as the Secretary may provide and meas-
ured in British thermal units.
‘‘(B) QUALIFIED PROFESSIONAL.—The term ‘qualified
professional’ means an individual who is a licensed
architect or a licensed engineer and meets such other
requirements as the Secretary may provide.
‘‘(8) COORDINATION WITH DEDUCTION OTHERWISE ALLOWED
UNDER SUBSECTION (a).—
‘‘(A) IN GENERAL.—In the case of any building with
respect to which an election is made under paragraph
(1), the term ‘energy efficient commercial building property’
shall not include any energy efficient building retrofit prop-
erty with respect to which a deduction is allowable under
this subsection.
‘‘(B) CERTAIN RULES NOT APPLICABLE.—
‘‘(i) IN GENERAL.—Except as provided in clause
(ii), subsection (d) shall not apply for purposes of this
subsection.
‘‘(ii) ALLOCATION OF DEDUCTION BY CERTAIN TAX-
EXEMPT ENTITIES.—Rules similar to subsection (d)(3)
shall apply for purposes of this subsection.’’.
(8) INFLATION ADJUSTMENT.—Section 179D(g) is amended—
(A) by striking ‘‘2020’’ and inserting ‘‘2022’’,
(B) by striking ‘‘or subsection (d)(1)(A)’’, and
(C) by striking ‘‘2019’’ and inserting ‘‘2021’’.
(b) APPLICATION TO REAL ESTATE INVESTMENT TRUST EARNINGS
AND PROFITS.—Section 312(k)(3)(B) is amended—
(1) by striking ‘‘For purposes of computing the earnings
and profits of a corporation’’ and inserting the following:
‘‘(i) IN GENERAL.—For purposes of computing the
earnings and profits of a corporation, except as pro-
vided in clause (ii)’’, and
(2) by adding at the end the following new clause:
‘‘(ii) SPECIAL RULE.—In the case of a corporation
that is a real estate investment trust, any amount
deductible under section 179D shall be allowed in the
year in which the property giving rise to such deduction
is placed in service (or, in the case of energy efficient
building retrofit property, the year in which the quali-
fying final certification is made).’’.
H. R. 5376—135
(c) CONFORMING AMENDMENT.—Paragraph (1) of section
179D(d), as redesignated by subsection (a)(5)(A), is amended by
striking ‘‘not later than the date that is 2 years before the date
that construction of such property begins’’ and inserting ‘‘not later
than the date that is 4 years before the date such property is
placed in service’’.
(d) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as otherwise provided in this sub-
section, the amendments made by this section shall apply to
taxable years beginning after December 31, 2022.
(2) ALTERNATIVE DEDUCTION FOR ENERGY EFFICIENT
BUILDING RETROFIT PROPERTY.—Subsection (f) of section 179D
of the Internal Revenue Code of 1986 (as amended by this
section), and any other provision of such section solely for
purposes of applying such subsection, shall apply to property
placed in service after December 31, 2022 (in taxable years
ending after such date) if such property is placed in service
pursuant to qualified retrofit plan (within the meaning of such
section) established after such date.
SEC. 13304. EXTENSION, INCREASE, AND MODIFICATIONS OF NEW
ENERGY EFFICIENT HOME CREDIT.
(a) EXTENSION OF CREDIT.—Section 45L(g) is amended by
striking ‘‘December 31, 2021’’ and inserting ‘‘December 31, 2032’’.
(b) INCREASE IN CREDIT AMOUNTS.—Paragraph (2) of section
45L(a) is amended to read as follows:
‘‘(2) APPLICABLE AMOUNT.—For purposes of paragraph (1),
the applicable amount is an amount equal to—
‘‘(A) in the case of a dwelling unit which is eligible
to participate in the Energy Star Residential New Construc-
tion Program or the Energy Star Manufactured New Homes
program—
‘‘(i) which meets the requirements of subsection
(c)(1)(A) (and which does not meet the requirements
of subsection (c)(1)(B)), $2,500, and
‘‘(ii) which meets the requirements of subsection
(c)(1)(B), $5,000, and
‘‘(B) in the case of a dwelling unit which is part of
a building eligible to participate in the Energy Star Multi-
family New Construction Program—
‘‘(i) which meets the requirements of subsection
(c)(1)(A) (and which does not meet the requirements
of subsection (c)(1)(B)), $500, and
‘‘(ii) which meets the requirements of subsection
(c)(1)(B), $1,000.’’.
(c) MODIFICATION OF ENERGY SAVING REQUIREMENTS.—Section
45L(c) is amended to read as follows:
‘‘(c) ENERGY SAVING REQUIREMENTS.—
‘‘(1) IN GENERAL.—
‘‘(A) IN GENERAL.—A dwelling unit meets the require-
ments of this subparagraph if such dwelling unit meets
the requirements of paragraph (2) or (3) (whichever is
applicable).
‘‘(B) ZERO ENERGY READY HOME PROGRAM.—A dwelling
unit meets the requirements of this subparagraph if such
dwelling unit is certified as a zero energy ready home
H. R. 5376—136
under the zero energy ready home program of the Depart-
ment of Energy as in effect on January 1, 2023 (or any
successor program determined by the Secretary).
‘‘(2) SINGLE-FAMILY HOME REQUIREMENTS.—A dwelling unit
meets the requirements of this paragraph if—
‘‘(A) such dwelling unit meets—
‘‘(i)(I) in the case of a dwelling unit acquired before
January 1, 2025, the Energy Star Single-Family New
Homes National Program Requirements 3.1, or
‘‘(II) in the case of a dwelling unit acquired after
December 31, 2024, the Energy Star Single-Family
New Homes National Program Requirements 3.2, and
‘‘(ii) the most recent Energy Star Single-Family
New Homes Program Requirements applicable to the
location of such dwelling unit (as in effect on the latter
of January 1, 2023, or January 1 of two calendar
years prior to the date the dwelling unit was acquired),
or
‘‘(B) such dwelling unit meets the most recent Energy
Star Manufactured Home National program requirements
as in effect on the latter of January 1, 2023, or January
1 of two calendar years prior to the date such dwelling
unit is acquired.
‘‘(3) MULTI-FAMILY HOME REQUIREMENTS.—A dwelling unit
meets the requirements of this paragraph if—
‘‘(A) such dwelling unit meets the most recent Energy
Star Multifamily New Construction National Program
Requirements (as in effect on either January 1, 2023, or
January 1 of three calendar years prior to the date the
dwelling was acquired, whichever is later), and
‘‘(B) such dwelling unit meets the most recent Energy
Star Multifamily New Construction Regional Program
Requirements applicable to the location of such dwelling
unit (as in effect on either January 1, 2023, or January
1 of three calendar years prior to the date the dwelling
was acquired, whichever is later).’’.
(d) PREVAILING WAGE REQUIREMENT.—Section 45L is amended
by redesignating subsection (g) as subsection (h) and by inserting
after subsection (f) the following new subsection:
‘‘(g) PREVAILING WAGE REQUIREMENT.—
‘‘(1) IN GENERAL.—In the case of a qualifying residence
described in subsection (a)(2)(B) meeting the prevailing wage
requirements of paragraph (2)(A), the credit amount allowed
with respect to such residence shall be—
‘‘(A) $2,500 in the case of a residence which meets
the requirements of subparagraph (A) of subsection (c)(1)
(and which does not meet the requirements of subpara-
graph (B) of such subsection), and
‘‘(B) $5,000 in the case of a residence which meets
the requirements of subsection (c)(1)(B).
‘‘(2) PREVAILING WAGE REQUIREMENTS.—
‘‘(A) IN GENERAL.—The requirements described in this
subparagraph with respect to any qualified residence are
that the taxpayer shall ensure that any laborers and
mechanics employed by the taxpayer or any contractor
or subcontractor in the construction of such residence shall
be paid wages at rates not less than the prevailing rates
H. R. 5376—137
for construction, alteration, or repair of a similar character
in the locality in which such residence is located as most
recently determined by the Secretary of Labor, in accord-
ance with subchapter IV of chapter 31 of title 40, United
States Code.
‘‘(B) CORRECTION AND PENALTY RELATED TO FAILURE
TO SATISFY WAGE REQUIREMENTS.—Rules similar to the
rules of section 45(b)(7)(B) shall apply.
‘‘(3) REGULATIONS AND GUIDANCE.—The Secretary shall
issue such regulations or other guidance as the Secretary deter-
mines necessary to carry out the purposes of this subsection,
including regulations or other guidance which provides for
requirements for recordkeeping or information reporting for
purposes of administering the requirements of this subsection.’’.
(e) BASIS ADJUSTMENT.—Section 45L(e) is amended by inserting
after the first sentence the following: ‘‘This subsection shall not
apply for purposes of determining the adjusted basis of any building
under section 42.’’.
(f) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided in paragraph (2), the
amendments made by this section shall apply to dwelling units
acquired after December 31, 2022.
(2) EXTENSION OF CREDIT.—The amendments made by sub-
section (a) shall apply to dwelling units acquired after December
31, 2021.
PART 4—CLEAN VEHICLES
SEC. 13401. CLEAN VEHICLE CREDIT.
(a) PER VEHICLE DOLLAR LIMITATION.—Section 30D(b) is
amended by striking paragraphs (2) and (3) and inserting the
following:
‘‘(2) CRITICAL MINERALS.—In the case of a vehicle with
respect to which the requirement described in subsection
(e)(1)(A) is satisfied, the amount determined under this para-
graph is $3,750.
‘‘(3) BATTERY COMPONENTS.—In the case of a vehicle with
respect to which the requirement described in subsection
(e)(2)(A) is satisfied, the amount determined under this para-
graph is $3,750.’’.
(b) FINAL ASSEMBLY.—Section 30D(d) is amended—
(1) in paragraph (1)—
(A) in subparagraph (E), by striking ‘‘and’’ at the end,
(B) in subparagraph (F)(ii), by striking the period at
the end and inserting ‘‘, and’’, and
(C) by adding at the end the following:
‘‘(G) the final assembly of which occurs within North
America.’’,
(2) by adding at the end the following:
‘‘(5) FINAL ASSEMBLY.—For purposes of paragraph (1)(G),
the term ‘final assembly’ means the process by which a manu-
facturer produces a new clean vehicle at, or through the use
of, a plant, factory, or other place from which the vehicle
is delivered to a dealer or importer with all component parts
necessary for the mechanical operation of the vehicle included
with the vehicle, whether or not the component parts are
permanently installed in or on the vehicle.’’.
H. R. 5376—138
(c) DEFINITION OF NEW CLEAN VEHICLE.—
(1) IN GENERAL.—Section 30D(d), as amended by the pre-
ceding provisions of this section, is amended—
(A) in the heading, by striking ‘‘QUALIFIED PLUG-IN
ELECTRIC DRIVE MOTOR’’ and inserting ‘‘CLEAN’’,
(B) in paragraph (1)—
(i) in the matter preceding subparagraph (A), by
striking ‘‘qualified plug-in electric drive motor’’ and
inserting ‘‘clean’’,
(ii) in subparagraph (C), by inserting ‘‘qualified’’
before ‘‘manufacturer’’,
(iii) in subparagraph (F)—
(I) in clause (i), by striking ‘‘4’’ and inserting
‘‘7’’, and
(II) in clause (ii), by striking ‘‘and’’ at the
end,
(iv) in subparagraph (G), by striking the period
at the end and inserting ‘‘, and’’, and
(v) by adding at the end the following:
‘‘(H) for which the person who sells any vehicle to
the taxpayer furnishes a report to the taxpayer and to
the Secretary, at such time and in such manner as the
Secretary shall provide, containing—
‘‘(i) the name and taxpayer identification number
of the taxpayer,
‘‘(ii) the vehicle identification number of the
vehicle, unless, in accordance with any applicable rules
promulgated by the Secretary of Transportation, the
vehicle is not assigned such a number,
‘‘(iii) the battery capacity of the vehicle,
‘‘(iv) verification that original use of the vehicle
commences with the taxpayer, and
‘‘(v) the maximum credit under this section allow-
able to the taxpayer with respect to the vehicle.’’,
(C) in paragraph (3)—
(i) in the heading, by striking ‘‘MANUFACTURER’’
and inserting ‘‘QUALIFIED MANUFACTURER’’,
(ii) by striking ‘‘The term ‘manufacturer’ has the
meaning given such term in’’ and inserting ‘‘The term
‘qualified manufacturer’ means any manufacturer
(within the meaning of the’’, and
(iii) by inserting ‘‘) which enters into a written
agreement with the Secretary under which such manu-
facturer agrees to make periodic written reports to
the Secretary (at such times and in such manner as
the Secretary may provide) providing vehicle identifica-
tion numbers and such other information related to
each vehicle manufactured by such manufacturer as
the Secretary may require’’ before the period at the
end, and
(D) by adding at the end the following:
‘‘(6) NEW QUALIFIED FUEL CELL MOTOR VEHICLE.—For pur-
poses of this section, the term ‘new clean vehicle’ shall include
any new qualified fuel cell motor vehicle (as defined in section
30B(b)(3)) which meets the requirements under subparagraphs
(G) and (H) of paragraph (1).’’.
(2) CONFORMING AMENDMENTS.—Section 30D is amended—
H. R. 5376—139
(A) in subsection (a), by striking ‘‘new qualified plug-
in electric drive motor vehicle’’ and inserting ‘‘new clean
vehicle’’, and
(B) in subsection (b)(1), by striking ‘‘new qualified plug-
in electric drive motor vehicle’’ and inserting ‘‘new clean
vehicle’’.
(d) ELIMINATION OF LIMITATION ON NUMBER OF VEHICLES
ELIGIBLE FOR CREDIT.—Section 30D is amended by striking sub-
section (e).
(e) CRITICAL MINERAL AND BATTERY COMPONENT REQUIRE-
MENTS.—
(1) IN GENERAL.—Section 30D, as amended by the preceding
provisions of this section, is amended by inserting after sub-
section (d) the following:
‘‘(e) CRITICAL MINERAL AND BATTERY COMPONENT REQUIRE-
MENTS.—
‘‘(1) CRITICAL MINERALS REQUIREMENT.—
‘‘(A) IN GENERAL.—The requirement described in this
subparagraph with respect to a vehicle is that, with respect
to the battery from which the electric motor of such vehicle
draws electricity, the percentage of the value of the
applicable critical minerals (as defined in section 45X(c)(6))
contained in such battery that were—
‘‘(i) extracted or processed—
‘‘(I) in the United States, or
‘‘(II) in any country with which the United
States has a free trade agreement in effect, or
‘‘(ii) recycled in North America,
is equal to or greater than the applicable percentage (as
certified by the qualified manufacturer, in such form or
manner as prescribed by the Secretary).
‘‘(B) APPLICABLE PERCENTAGE.—For purposes of
subparagraph (A), the applicable percentage shall be—
‘‘(i) in the case of a vehicle placed in service after
the date on which the proposed guidance described
in paragraph (3)(B) is issued by the Secretary and
before January 1, 2024, 40 percent,
‘‘(ii) in the case of a vehicle placed in service during
calendar year 2024, 50 percent,
‘‘(iii) in the case of a vehicle placed in service
during calendar year 2025, 60 percent,
‘‘(iv) in the case of a vehicle placed in service
during calendar year 2026, 70 percent, and
‘‘(v) in the case of a vehicle placed in service after
December 31, 2026, 80 percent.
‘‘(2) BATTERY COMPONENTS.—
‘‘(A) IN GENERAL.—The requirement described in this
subparagraph with respect to a vehicle is that, with respect
to the battery from which the electric motor of such vehicle
draws electricity, the percentage of the value of the compo-
nents contained in such battery that were manufactured
or assembled in North America is equal to or greater than
the applicable percentage (as certified by the qualified
manufacturer, in such form or manner as prescribed by
the Secretary).
‘‘(B) APPLICABLE PERCENTAGE.—For purposes of
subparagraph (A), the applicable percentage shall be—
H. R. 5376—140
‘‘(i) in the case of a vehicle placed in service after
the date on which the proposed guidance described
in paragraph (3)(B) is issued by the Secretary and
before January 1, 2024, 50 percent,
‘‘(ii) in the case of a vehicle placed in service during
calendar year 2024 or 2025, 60 percent,
‘‘(iii) in the case of a vehicle placed in service
during calendar year 2026, 70 percent,
‘‘(iv) in the case of a vehicle placed in service
during calendar year 2027, 80 percent,
‘‘(v) in the case of a vehicle placed in service during
calendar year 2028, 90 percent,
‘‘(vi) in the case of a vehicle placed in service
after December 31, 2028, 100 percent.
‘‘(3) REGULATIONS AND GUIDANCE.—
‘‘(A) IN GENERAL.—The Secretary shall issue such regu-
lations or other guidance as the Secretary determines nec-
essary to carry out the purposes of this subsection,
including regulations or other guidance which provides for
requirements for recordkeeping or information reporting
for purposes of administering the requirements of this sub-
section.
‘‘(B) DEADLINE FOR PROPOSED GUIDANCE.—Not later
than December 31, 2022, the Secretary shall issue proposed
guidance with respect to the requirements under this sub-
section.’’.
(2) EXCLUDED ENTITIES.—Section 30D(d), as amended by
the preceding provisions of this section, is amended by adding
at the end the following:
‘‘(7) EXCLUDED ENTITIES.—For purposes of this section, the
term ‘new clean vehicle’ shall not include—
‘‘(A) any vehicle placed in service after December 31,
2024, with respect to which any of the applicable critical
minerals contained in the battery of such vehicle (as
described in subsection (e)(1)(A)) were extracted, processed,
or recycled by a foreign entity of concern (as defined in
section 40207(a)(5) of the Infrastructure Investment and
Jobs Act (42 U.S.C. 18741(a)(5))), or
‘‘(B) any vehicle placed in service after December 31,
2023, with respect to which any of the components con-
tained in the battery of such vehicle (as described in sub-
section (e)(2)(A)) were manufactured or assembled by a
foreign entity of concern (as so defined).’’.
(f) SPECIAL RULES.—Section 30D(f) is amended by adding at
the end the following:
‘‘(8) ONE CREDIT PER VEHICLE.—In the case of any vehicle,
the credit described in subsection (a) shall only be allowed
once with respect to such vehicle, as determined based upon
the vehicle identification number of such vehicle.
‘‘(9) VIN REQUIREMENT.—No credit shall be allowed under
this section with respect to any vehicle unless the taxpayer
includes the vehicle identification number of such vehicle on
the return of tax for the taxable year.
‘‘(10) LIMITATION BASED ON MODIFIED ADJUSTED GROSS
INCOME.—
‘‘(A) IN GENERAL.—No credit shall be allowed under
subsection (a) for any taxable year if—
H. R. 5376—141
‘‘(i) the lesser of—
‘‘(I) the modified adjusted gross income of the
taxpayer for such taxable year, or
‘‘(II) the modified adjusted gross income of
the taxpayer for the preceding taxable year,
exceeds
‘‘(ii) the threshold amount.
‘‘(B) THRESHOLD AMOUNT.—For purposes of subpara-
graph (A)(ii), the threshold amount shall be—
‘‘(i) in the case of a joint return or a surviving
spouse (as defined in section 2(a)), $300,000,
‘‘(ii) in the case of a head of household (as defined
in section 2(b)), $225,000, and
‘‘(iii) in the case of a taxpayer not described in
clause (i) or (ii), $150,000.
‘‘(C) MODIFIED ADJUSTED GROSS INCOME.—For purposes
of this paragraph, the term ‘modified adjusted gross income’
means adjusted gross income increased by any amount
excluded from gross income under section 911, 931, or
933.
‘‘(11) MANUFACTURER’S SUGGESTED RETAIL PRICE LIMITA-
TION.—
‘‘(A) IN GENERAL.—No credit shall be allowed under
subsection (a) for a vehicle with a manufacturer’s suggested
retail price in excess of the applicable limitation.
‘‘(B) APPLICABLE LIMITATION.—For purposes of subpara-
graph (A), the applicable limitation for each vehicle classi-
fication is as follows:
‘‘(i) VANS.—In the case of a van, $80,000.
‘‘(ii) SPORT UTILITY VEHICLES.—In the case of a
sport utility vehicle, $80,000.
‘‘(iii) PICKUP TRUCKS.—In the case of a pickup
truck, $80,000.
‘‘(iv) OTHER.—In the case of any other vehicle,
$55,000.
‘‘(C) REGULATIONS AND GUIDANCE.—For purposes of
this paragraph, the Secretary shall prescribe such regula-
tions or other guidance as the Secretary determines nec-
essary for determining vehicle classifications using criteria
similar to that employed by the Environmental Protection
Agency and the Department of the Energy to determine
size and class of vehicles.’’.
(g) TRANSFER OF CREDIT.—
(1) IN GENERAL.—Section 30D is amended by striking sub-
section (g) and inserting the following:
‘‘(g) TRANSFER OF CREDIT.—
‘‘(1) IN GENERAL.—Subject to such regulations or other guid-
ance as the Secretary determines necessary, if the taxpayer
who acquires a new clean vehicle elects the application of
this subsection with respect to such vehicle, the credit which
would (but for this subsection) be allowed to such taxpayer
with respect to such vehicle shall be allowed to the eligible
entity specified in such election (and not to such taxpayer).
‘‘(2) ELIGIBLE ENTITY.—For purposes of this subsection, the
term ‘eligible entity’ means, with respect to the vehicle for
which the credit is allowed under subsection (a), the dealer
which sold such vehicle to the taxpayer and has—
H. R. 5376—142
‘‘(A) subject to paragraph (4), registered with the Sec-
retary for purposes of this paragraph, at such time, and
in such form and manner, as the Secretary may prescribe,
‘‘(B) prior to the election described in paragraph (1)
and not later than at the time of such sale, disclosed
to the taxpayer purchasing such vehicle—
‘‘(i) the manufacturer’s suggested retail price,
‘‘(ii) the value of the credit allowed and any other
incentive available for the purchase of such vehicle,
and
‘‘(iii) the amount provided by the dealer to such
taxpayer as a condition of the election described in
paragraph (1),
‘‘(C) not later than at the time of such sale, made
payment to such taxpayer (whether in cash or in the form
of a partial payment or down payment for the purchase
of such vehicle) in an amount equal to the credit otherwise
allowable to such taxpayer, and
‘‘(D) with respect to any incentive otherwise available
for the purchase of a vehicle for which a credit is allowed
under this section, including any incentive in the form
of a rebate or discount provided by the dealer or manufac-
turer, ensured that—
‘‘(i) the availability or use of such incentive shall
not limit the ability of a taxpayer to make an election
described in paragraph (1), and
‘‘(ii) such election shall not limit the value or use
of such incentive.
‘‘(3) TIMING.—An election described in paragraph (1) shall
be made by the taxpayer not later than the date on which
the vehicle for which the credit is allowed under subsection
(a) is purchased.
‘‘(4) REVOCATION OF REGISTRATION.—Upon determination
by the Secretary that a dealer has failed to comply with the
requirements described in paragraph (2), the Secretary may
revoke the registration (as described in subparagraph (A) of
such paragraph) of such dealer.
‘‘(5) TAX TREATMENT OF PAYMENTS.—With respect to any
payment described in paragraph (2)(C), such payment—
‘‘(A) shall not be includible in the gross income of
the taxpayer, and
‘‘(B) with respect to the dealer, shall not be deductible
under this title.
‘‘(6) APPLICATION OF CERTAIN OTHER REQUIREMENTS.—In
the case of any election under paragraph (1) with respect to
any vehicle—
‘‘(A) the requirements of paragraphs (1) and (2) of
subsection (f) shall apply to the taxpayer who acquired
the vehicle in the same manner as if the credit determined
under this section with respect to such vehicle were allowed
to such taxpayer,
‘‘(B) paragraph (6) of such subsection shall not apply,
and
‘‘(C) the requirement of paragraph (9) of such sub-
section (f) shall be treated as satisfied if the eligible entity
provides the vehicle identification number of such vehicle
H. R. 5376—143
to the Secretary in such manner as the Secretary may
provide.
‘‘(7) ADVANCE PAYMENT TO REGISTERED DEALERS.—
‘‘(A) IN GENERAL.—The Secretary shall establish a pro-
gram to make advance payments to any eligible entity
in an amount equal to the cumulative amount of the credits
allowed under subsection (a) with respect to any vehicles
sold by such entity for which an election described in
paragraph (1) has been made.
‘‘(B) EXCESSIVE PAYMENTS.—Rules similar to the rules
of section 6417(d)(6) shall apply for purposes of this para-
graph.
‘‘(C) TREATMENT OF ADVANCE PAYMENTS.—For purposes
of section 1324 of title 31, United States Code, the pay-
ments under subparagraph (A) shall be treated in the
same manner as a refund due from a credit provision
referred to in subsection (b)(2) of such section.
‘‘(8) DEALER.—For purposes of this subsection, the term
‘dealer’ means a person licensed by a State, the District of
Columbia, the Commonwealth of Puerto Rico, any other terri-
tory or possession of the United States, an Indian tribal govern-
ment, or any Alaska Native Corporation (as defined in section
3 of the Alaska Native Claims Settlement Act (43 U.S.C.
1602(m)) to engage in the sale of vehicles.
‘‘(9) INDIAN TRIBAL GOVERNMENT.—For purposes of this sub-
section, the term ‘Indian tribal government’ means the recog-
nized governing body of any Indian or Alaska Native tribe,
band, nation, pueblo, village, community, component band, or
component reservation, individually identified (including par-
enthetically) in the list published most recently as of the date
of enactment of this subsection pursuant to section 104 of
the Federally Recognized Indian Tribe List Act of 1994 (25
U.S.C. 5131).
‘‘(10) RECAPTURE.—In the case of any taxpayer who has
made an election described in paragraph (1) with respect to
a new clean vehicle and received a payment described in para-
graph (2)(C) from an eligible entity, if the credit under sub-
section (a) would otherwise (but for this subsection) not be
allowable to such taxpayer pursuant to the application of sub-
section (f)(10), the tax imposed on such taxpayer under this
chapter for the taxable year in which such vehicle was placed
in service shall be increased by the amount of the payment
received by such taxpayer.’’.
(2) CONFORMING AMENDMENTS.—Section 30D, as amended
by the preceding provisions of this section, is amended—
(A) in subsection (d)(1)(H) of such section—
(i) in clause (iv), by striking ‘‘and’’ at the end,
(ii) in clause (v), by striking the period at the
end and inserting ‘‘, and’’, and
(iii) by adding at the end the following:
‘‘(vi) in the case of a taxpayer who makes an elec-
tion under subsection (g)(1), any amount described in
subsection (g)(2)(C) which has been provided to such
taxpayer.’’, and
(B) in subsection (f)—
(i) by striking paragraph (3), and
H. R. 5376—144
(ii) in paragraph (8), by inserting ‘‘, including any
vehicle with respect to which the taxpayer elects the
application of subsection (g)’’ before the period at the
end.
(h) TERMINATION.—Section 30D is amended by adding at the
end the following:
‘‘(h) TERMINATION.—No credit shall be allowed under this sec-
tion with respect to any vehicle placed in service after December
31, 2032.’’.
(i) ADDITIONAL CONFORMING AMENDMENTS.—
(1) The heading of section 30D is amended by striking
‘‘NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES’’
and inserting ‘‘CLEAN VEHICLE CREDIT’’.
(2) Section 30B is amended—
(A) in subsection (h)(8), by striking ‘‘, except that no
benefit shall be recaptured if such property ceases to be
eligible for such credit by reason of conversion to a qualified
plug-in electric drive motor vehicle’’, and
(B) by striking subsection (i).
(3) Section 38(b)(30) is amended by striking ‘‘qualified plug-
in electric drive motor’’ and inserting ‘‘clean’’.
(4) Section 6213(g)(2), as amended by the preceding provi-
sions of this Act, is amended—
(A) in subparagraph (R), by striking ‘‘and’’ at the end,
(B) in subparagraph (S), by striking the period at the
end and inserting ‘‘, and’’, and
(C) by inserting after subparagraph (S) the following:
‘‘(T) an omission of a correct vehicle identification
number required under section 30D(f)(9) (relating to credit
for new clean vehicles) to be included on a return.’’.
(5) Section 6501(m) is amended by striking ‘‘30D(e)(4)’’
and inserting ‘‘30D(f)(6)’’.
(6) The table of sections for subpart B of part IV of sub-
chapter A of chapter 1 is amended by striking the item relating
to section 30D and inserting after the item relating to section
30C the following item:
‘‘Sec. 30D. Clean vehicle credit.’’.
(j) GROSS-UP OF DIRECT SPENDING.—Beginning in fiscal year
2023 and each fiscal year thereafter, the portion of any credit
allowed to an eligible entity (as defined in section 30D(g)(2) of
the Internal Revenue Code of 1986) pursuant to an election made
under section 30D(g) of the Internal Revenue Code of 1986 that
is direct spending shall be increased by 6.0445 percent.
(k) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided in paragraphs (2),
(3), (4), and (5), the amendments made by this section shall
apply to vehicles placed in service after December 31, 2022.
(2) FINAL ASSEMBLY.—The amendments made by subsection
(b) shall apply to vehicles sold after the date of enactment
of this Act.
(3) PER VEHICLE DOLLAR LIMITATION AND RELATED REQUIRE-
MENTS.—The amendments made by subsections (a) and (e) shall
apply to vehicles placed in service after the date on which
the proposed guidance described in paragraph (3)(B) of section
30D(e) of the Internal Revenue Code of 1986 (as added by
subsection (e)) is issued by the Secretary of the Treasury (or
the Secretary’s delegate).
H. R. 5376—145
(4) TRANSFER OF CREDIT.—The amendments made by sub-
section (g) shall apply to vehicles placed in service after
December 31, 2023.
(5) ELIMINATION OF MANUFACTURER LIMITATION.—The
amendment made by subsection (d) shall apply to vehicles
sold after December 31, 2022.
(l) TRANSITION RULE.—Solely for purposes of the application
of section 30D of the Internal Revenue Code of 1986, in the case
of a taxpayer that—
(1) after December 31, 2021, and before the date of enact-
ment of this Act, purchased, or entered into a written binding
contract to purchase, a new qualified plug-in electric drive
motor vehicle (as defined in section 30D(d)(1) of the Internal
Revenue Code of 1986, as in effect on the day before the
date of enactment of this Act), and
(2) placed such vehicle in service on or after the date
of enactment of this Act,
such taxpayer may elect (at such time, and in such form and
manner, as the Secretary of the Treasury, or the Secretary’s dele-
gate, may prescribe) to treat such vehicle as having been placed
in service on the day before the date of enactment of this Act.
SEC. 13402. CREDIT FOR PREVIOUSLY-OWNED CLEAN VEHICLES.
(a) IN GENERAL.—Subpart A of part IV of subchapter A of
chapter 1 is amended by inserting after section 25D the following
new section:
‘‘SEC. 25E. PREVIOUSLY-OWNED CLEAN VEHICLES.
‘‘(a) ALLOWANCE OF CREDIT.—In the case of a qualified buyer
who during a taxable year places in service a previously-owned
clean vehicle, there shall be allowed as a credit against the tax
imposed by this chapter for the taxable year an amount equal
to the lesser of—
‘‘(1) $4,000, or
‘‘(2) the amount equal to 30 percent of the sale price with
respect to such vehicle.
‘‘(b) LIMITATION BASED ON MODIFIED ADJUSTED GROSS
INCOME.—
‘‘(1) IN GENERAL.—No credit shall be allowed under sub-
section (a) for any taxable year if—
‘‘(A) the lesser of—
‘‘(i) the modified adjusted gross income of the tax-
payer for such taxable year, or
‘‘(ii) the modified adjusted gross income of the tax-
payer for the preceding taxable year, exceeds
‘‘(B) the threshold amount.
‘‘(2) THRESHOLD AMOUNT.—For purposes of paragraph
(1)(B), the threshold amount shall be—
‘‘(A) in the case of a joint return or a surviving spouse
(as defined in section 2(a)), $150,000,
‘‘(B) in the case of a head of household (as defined
in section 2(b)), $112,500, and
‘‘(C) in the case of a taxpayer not described in subpara-
graph (A) or (B), $75,000.
‘‘(3) MODIFIED ADJUSTED GROSS INCOME.—For purposes of
this subsection, the term ‘modified adjusted gross income’
means adjusted gross income increased by any amount excluded
from gross income under section 911, 931, or 933.
H. R. 5376—146
‘‘(c) DEFINITIONS.—For purposes of this section—
‘‘(1) PREVIOUSLY-OWNED CLEAN VEHICLE.—The term ‘pre-
viously-owned clean vehicle’ means, with respect to a taxpayer,
a motor vehicle—
‘‘(A) the model year of which is at least 2 years earlier
than the calendar year in which the taxpayer acquires
such vehicle,
‘‘(B) the original use of which commences with a person
other than the taxpayer,
‘‘(C) which is acquired by the taxpayer in a qualified
sale, and
‘‘(D) which—
‘‘(i) meets the requirements of subparagraphs (C),
(D), (E), (F), and (H) (except for clause (iv) thereof)
of section 30D(d)(1), or
‘‘(ii) is a motor vehicle which—
‘‘(I) satisfies the requirements under subpara-
graphs (A) and (B) of section 30B(b)(3), and
‘‘(II) has a gross vehicle weight rating of less
than 14,000 pounds.
‘‘(2) QUALIFIED SALE.—The term ‘qualified sale’ means a
sale of a motor vehicle—
‘‘(A) by a dealer (as defined in section 30D(g)(8)),
‘‘(B) for a sale price which does not exceed $25,000,
and
‘‘(C) which is the first transfer since the date of the
enactment of this section to a qualified buyer other than
the person with whom the original use of such vehicle
commenced.
‘‘(3) QUALIFIED BUYER.—The term ‘qualified buyer’ means,
with respect to a sale of a motor vehicle, a taxpayer—
‘‘(A) who is an individual,
‘‘(B) who purchases such vehicle for use and not for
resale,
‘‘(C) with respect to whom no deduction is allowable
with respect to another taxpayer under section 151, and
‘‘(D) who has not been allowed a credit under this
section for any sale during the 3-year period ending on
the date of the sale of such vehicle.
‘‘(4) MOTOR VEHICLE; CAPACITY.—The terms ‘motor vehicle’
and ‘capacity’ have the meaning given such terms in paragraphs
(2) and (4) of section 30D(d), respectively.
‘‘(d) VIN NUMBER REQUIREMENT.—No credit shall be allowed
under subsection (a) with respect to any vehicle unless the taxpayer
includes the vehicle identification number of such vehicle on the
return of tax for the taxable year.
‘‘(e) APPLICATION OF CERTAIN RULES.—For purposes of this
section, rules similar to the rules of section 30D(f) (without regard
to paragraph (10) or (11) thereof) shall apply for purposes of this
section.
‘‘(f) TERMINATION.—No credit shall be allowed under this section
with respect to any vehicle acquired after December 31, 2032.’’.
(b) TRANSFER OF CREDIT.—Section 25E, as added by subsection
(a), is amended—
(1) by redesignating subsection (f) as subsection (g), and
(2) by inserting after subsection (e) the following:
H. R. 5376—147
‘‘(f) TRANSFER OF CREDIT.—Rules similar to the rules of section
30D(g) shall apply.’’.
(c) CONFORMING AMENDMENTS.—Section 6213(g)(2), as amended
by the preceding provisions of this Act, is amended—
(1) in subparagraph (S), by striking ‘‘and’’ at the end,
(2) in subparagraph (T), by striking the period at the end
and inserting ‘‘, and’’, and
(3) by inserting after subparagraph (T) the following:
‘‘(U) an omission of a correct vehicle identification
number required under section 25E(d) (relating to credit
for previously-owned clean vehicles) to be included on a
return.’’.
(d) CLERICAL AMENDMENT.—The table of sections for subpart
A of part IV of subchapter A of chapter 1 is amended by inserting
after the item relating to section 25D the following new item:
‘‘Sec. 25E. Previously-owned clean vehicles.’’.
(e) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in paragraph (2), the
amendments made by this section shall apply to vehicles
acquired after December 31, 2022.
(2) TRANSFER OF CREDIT.—The amendments made by sub-
section (b) shall apply to vehicles acquired after December
31, 2023.
SEC. 13403. QUALIFIED COMMERCIAL CLEAN VEHICLES.
(a) IN GENERAL.—Subpart D of part IV of subchapter A of
chapter 1, as amended by the preceding provisions of this Act,
is amended by adding at the end the following new section:
‘‘SEC. 45W. CREDIT FOR QUALIFIED COMMERCIAL CLEAN VEHICLES.
‘‘(a) IN GENERAL.—For purposes of section 38, the qualified
commercial clean vehicle credit for any taxable year is an amount
equal to the sum of the credit amounts determined under subsection
(b) with respect to each qualified commercial clean vehicle placed
in service by the taxpayer during the taxable year.
‘‘(b) PER VEHICLE AMOUNT.—
‘‘(1) IN GENERAL.—Subject to paragraph (4), the amount
determined under this subsection with respect to any qualified
commercial clean vehicle shall be equal to the lesser of—
‘‘(A) 15 percent of the basis of such vehicle (30 percent
in the case of a vehicle not powered by a gasoline or
diesel internal combustion engine), or
‘‘(B) the incremental cost of such vehicle.
‘‘(2) INCREMENTAL COST.—For purposes of paragraph (1)(B),
the incremental cost of any qualified commercial clean vehicle
is an amount equal to the excess of the purchase price for
such vehicle over such price of a comparable vehicle.
‘‘(3) COMPARABLE VEHICLE.—For purposes of this sub-
section, the term ‘comparable vehicle’ means, with respect to
any qualified commercial clean vehicle, any vehicle which is
powered solely by a gasoline or diesel internal combustion
engine and which is comparable in size and use to such vehicle.
‘‘(4) LIMITATION.—The amount determined under this sub-
section with respect to any qualified commercial clean vehicle
shall not exceed—
‘‘(A) in the case of a vehicle which has a gross vehicle
weight rating of less than 14,000 pounds, $7,500, and
H. R. 5376—148
‘‘(B) in the case of a vehicle not described in subpara-
graph (A), $40,000.
‘‘(c) QUALIFIED COMMERCIAL CLEAN VEHICLE.—For purposes
of this section, the term ‘qualified commercial clean vehicle’ means
any vehicle which—
‘‘(1) meets the requirements of section 30D(d)(1)(C) and
is acquired for use or lease by the taxpayer and not for resale,
‘‘(2) either—
‘‘(A) meets the requirements of subparagraph (D) of
section 30D(d)(1) and is manufactured primarily for use
on public streets, roads, and highways (not including a
vehicle operated exclusively on a rail or rails), or
‘‘(B) is mobile machinery, as defined in section 4053(8)
(including vehicles that are not designed to perform a func-
tion of transporting a load over the public highways),
‘‘(3) either—
‘‘(A) is propelled to a significant extent by an electric
motor which draws electricity from a battery which has
a capacity of not less than 15 kilowatt hours (or, in the
case of a vehicle which has a gross vehicle weight rating
of less than 14,000 pounds, 7 kilowatt hours) and is capable
of being recharged from an external source of electricity,
or
‘‘(B) is a motor vehicle which satisfies the requirements
under subparagraphs (A) and (B) of section 30B(b)(3), and
‘‘(4) is of a character subject to the allowance for deprecia-
tion.
‘‘(d) SPECIAL RULES.—
‘‘(1) IN GENERAL.—Rules similar to the rules under sub-
section (f) of section 30D (without regard to paragraph (10)
or (11) thereof) shall apply for purposes of this section.
‘‘(2) VEHICLES PLACED IN SERVICE BY TAX-EXEMPT ENTI-
TIES.—Subsection (c)(4) shall not apply to any vehicle which
is not subject to a lease and which is placed in service by
a tax-exempt entity described in clause (i), (ii), or (iv) of section
168(h)(2)(A).
‘‘(3) NO DOUBLE BENEFIT.—No credit shall be allowed under
this section with respect to any vehicle for which a credit
was allowed under section 30D.
‘‘(e) VIN NUMBER REQUIREMENT.—No credit shall be deter-
mined under subsection (a) with respect to any vehicle unless
the taxpayer includes the vehicle identification number of such
vehicle on the return of tax for the taxable year.
‘‘(f) REGULATIONS AND GUIDANCE.—The Secretary shall issue
such regulations or other guidance as the Secretary determines
necessary to carry out the purposes of this section, including regula-
tions or other guidance relating to determination of the incremental
cost of any qualified commercial clean vehicle.
‘‘(g) TERMINATION.—No credit shall be determined under this
section with respect to any vehicle acquired after December 31,
2032.’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 38(b), as amended by the preceding provisions
of this Act, is amended—
(A) in paragraph (35), by striking ‘‘plus’’ at the end,
(B) in paragraph (36), by striking the period at the
end and inserting ‘‘, plus’’, and
H. R. 5376—149
(C) by adding at the end the following new paragraph:
‘‘(37) the qualified commercial clean vehicle credit deter-
mined under section 45W.’’.
(2) Section 6213(g)(2), as amended by the preceding provi-
sions of this Act, is amended—
(A) in subparagraph (T), by striking ‘‘and’’ at the end,
(B) in subparagraph (U), by striking the period at
the end and inserting ‘‘, and’’, and
(C) by inserting after subparagraph (U) the following:
‘‘(V) an omission of a correct vehicle identification
number required under section 45W(e) (relating to commer-
cial clean vehicle credit) to be included on a return.’’.
(3) The table of sections for subpart D of part IV of sub-
chapter A of chapter 1, as amended by the preceding provisions
of this Act, is amended by adding at the end the following
new item:
‘‘Sec. 45W. Qualified commercial clean vehicle credit.’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall apply to vehicles acquired after December 31, 2022.
SEC. 13404. ALTERNATIVE FUEL REFUELING PROPERTY CREDIT.
(a) IN GENERAL.—Section 30C(g) is amended by striking
‘‘December 31, 2021’’ and inserting ‘‘December 31, 2032’’.
(b) CREDIT FOR PROPERTY OF A CHARACTER SUBJECT TO DEPRE-
CIATION.—
(1) IN GENERAL.—Section 30C(a) is amended by inserting
‘‘(6 percent in the case of property of a character subject to
depreciation)’’ after ‘‘30 percent’’.
(2) MODIFICATION OF CREDIT LIMITATION.—Subsection (b)
of section 30C is amended—
(A) in the matter preceding paragraph (1)—
(i) by striking ‘‘with respect to all’’ and inserting
‘‘with respect to any single item of’’, and
(ii) by striking ‘‘at a location’’, and
(B) in paragraph (1), by striking ‘‘$30,000 in the case
of a property’’ and inserting ‘‘$100,000 in the case of any
such item of property’’.
(3) BIDIRECTIONAL CHARGING EQUIPMENT INCLUDED AS
QUALIFIED ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY.—
Section 30C(c) is amended to read as follows:
‘‘(c) QUALIFIED ALTERNATIVE FUEL VEHICLE REFUELING PROP-
ERTY.—For purposes of this section—
‘‘(1) IN GENERAL.—The term ‘qualified alternative fuel
vehicle refueling property’ has the same meaning as the term
‘qualified clean-fuel vehicle refueling property’ would have
under section 179A if—
‘‘(A) paragraph (1) of section 179A(d) did not apply
to property installed on property which is used as the
principal residence (within the meaning of section 121)
of the taxpayer, and
‘‘(B) only the following were treated as clean-burning
fuels for purposes of section 179A(d):
‘‘(i) Any fuel at least 85 percent of the volume
of which consists of one or more of the following: eth-
anol, natural gas, compressed natural gas, liquified
natural gas, liquefied petroleum gas, or hydrogen.
‘‘(ii) Any mixture—
H. R. 5376—150
‘‘(I) which consists of two or more of the fol-
lowing: biodiesel (as defined in section 40A(d)(1)),
diesel fuel (as defined in section 4083(a)(3)), or
kerosene, and
‘‘(II) at least 20 percent of the volume of which
consists of biodiesel (as so defined) determined
without regard to any kerosene in such mixture.
‘‘(iii) Electricity.
‘‘(2) BIDIRECTIONAL CHARGING EQUIPMENT.—Property shall
not fail to be treated as qualified alternative fuel vehicle
refueling property solely because such property—
‘‘(A) is capable of charging the battery of a motor
vehicle propelled by electricity, and
‘‘(B) allows discharging electricity from such battery
to an electric load external to such motor vehicle.’’.
(c) CERTAIN ELECTRIC CHARGING STATIONS INCLUDED AS QUALI-
FIED ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY.—Section
30C is amended by redesignating subsections (f) and (g) as sub-
sections (g) and (h), respectively, and by inserting after subsection
(e) the following:
‘‘(f) SPECIAL RULE FOR ELECTRIC CHARGING STATIONS FOR CER-
TAIN VEHICLES WITH 2 OR 3 WHEELS.—For purposes of this sec-
tion—
‘‘(1) IN GENERAL.—The term ‘qualified alternative fuel
vehicle refueling property’ includes any property described in
subsection (c) for the recharging of a motor vehicle described
in paragraph (2), but only if such property—
‘‘(A) meets the requirements of subsection (a)(2), and
‘‘(B) is of a character subject to depreciation.
‘‘(2) MOTOR VEHICLE.—A motor vehicle is described in this
paragraph if the motor vehicle—
‘‘(A) is manufactured primarily for use on public
streets, roads, or highways (not including a vehicle operated
exclusively on a rail or rails),
‘‘(B) has 2 or 3 wheels, and
‘‘(C) is propelled by electricity.’’.
(d) WAGE AND APPRENTICESHIP REQUIREMENTS.—Section 30C,
as amended by this section, is further amended by redesignating
subsections (g) and (h) as subsections (h) and (i) and by inserting
after subsection (f) the following new subsection:
‘‘(g) WAGE AND APPRENTICESHIP REQUIREMENTS.—
‘‘(1) INCREASED CREDIT AMOUNT.—
‘‘(A) IN GENERAL.—In the case of any qualified alter-
native fuel vehicle refueling project which satisfies the
requirements of subparagraph (C), the amount of the credit
determined under subsection (a) for any qualified alter-
native fuel vehicle refueling property of a character subject
to an allowance for depreciation which is part of such
project shall be equal to such amount (determined without
regard to this sentence) multiplied by 5.
‘‘(B) QUALIFIED ALTERNATIVE FUEL VEHICLE REFUELING
PROJECT.—For purposes of this subsection, the term ‘quali-
fied alternative fuel vehicle refueling project’ means a
project consisting of one or more properties that are part
of a single project.
H. R. 5376—151
‘‘(C) PROJECT REQUIREMENTS.—A project meets the
requirements of this subparagraph if it is one of the fol-
lowing:
‘‘(i) A project the construction of which begins prior
to the date that is 60 days after the Secretary publishes
guidance with respect to the requirements of para-
graphs (2)(A) and (3).
‘‘(ii) A project which satisfies the requirements
of paragraphs (2)(A) and (3).
‘‘(2) PREVAILING WAGE REQUIREMENTS.—
‘‘(A) IN GENERAL.—The requirements described in this
subparagraph with respect to any qualified alternative fuel
vehicle refueling project are that the taxpayer shall ensure
that any laborers and mechanics employed by the taxpayer
or any contractor or subcontractor in the construction of
any qualified alternative fuel vehicle refueling property
which is part of such project shall be paid wages at rates
not less than the prevailing rates for construction, alter-
ation, or repair of a similar character in the locality in
which such project is located as most recently determined
by the Secretary of Labor, in accordance with subchapter
IV of chapter 31 of title 40, United States Code.
‘‘(B) CORRECTION AND PENALTY RELATED TO FAILURE
TO SATISFY WAGE REQUIREMENTS.—Rules similar to the
rules of section 45(b)(7)(B) shall apply.
‘‘(3) APPRENTICESHIP REQUIREMENTS.—Rules similar to the
rules of section 45(b)(8) shall apply.
‘‘(4) REGULATIONS AND GUIDANCE.—The Secretary shall
issue such regulations or other guidance as the Secretary deter-
mines necessary to carry out the purposes of this subsection,
including regulations or other guidance which provides for
requirements for recordkeeping or information reporting for
purposes of administering the requirements of this subsection.’’.
(e) ELIGIBLE CENSUS TRACTS.—Subsection (c) of section 30C,
as amended by subsection (b)(3), is amended by adding at the
end the following:
‘‘(3) PROPERTY REQUIRED TO BE LOCATED IN ELIGIBLE
CENSUS TRACTS.—
‘‘(A) IN GENERAL.—Property shall not be treated as
qualified alternative fuel vehicle refueling property unless
such property is placed in service in an eligible census
tract.
‘‘(B) ELIGIBLE CENSUS TRACT.—
‘‘(i) IN GENERAL.—For purposes of this paragraph,
the term ‘eligible census tract’ means any population
census tract which—
‘‘(I) is described in section 45D(e), or
‘‘(II) is not an urban area.
‘‘(ii) URBAN AREA.—For purposes of clause (i)(II),
the term ‘urban area’ means a census tract (as defined
by the Bureau of the Census) which, according to the
most recent decennial census, has been designated as
an urban area by the Secretary of Commerce.’’.
(f) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in paragraph (2), the
amendments made by this section shall apply to property placed
in service after December 31, 2022.
H. R. 5376—152
(2) EXTENSION.—The amendments made by subsection (a)
shall apply to property placed in service after December 31,
2021.
PART 5—INVESTMENT IN CLEAN ENERGY
MANUFACTURING AND ENERGY SECURITY
SEC. 13501. EXTENSION OF THE ADVANCED ENERGY PROJECT CREDIT.
(a) EXTENSION OF CREDIT.—Section 48C is amended by redesig-
nating subsection (e) as subsection (f) and by inserting after sub-
section (d) the following new subsection:
‘‘(e) ADDITIONAL ALLOCATIONS.—
‘‘(1) IN GENERAL.—Not later than 180 days after the date
of enactment of this subsection, the Secretary shall establish
a program to consider and award certifications for qualified
investments eligible for credits under this section to qualifying
advanced energy project sponsors.
‘‘(2) LIMITATION.—The total amount of credits which may
be allocated under the program established under paragraph
(1) shall not exceed $10,000,000,000, of which not greater than
$6,000,000,000 may be allocated to qualified investments which
are not located within a census tract which—
‘‘(A) is described in clause (iii) of section 45(b)(11)(B),
and
‘‘(B) prior to the date of enactment of this subsection,
had no project which received a certification and allocation
of credits under subsection (d).
‘‘(3) CERTIFICATIONS.—
‘‘(A) APPLICATION REQUIREMENT.—Each applicant for
certification under this subsection shall submit an applica-
tion at such time and containing such information as the
Secretary may require.
‘‘(B) TIME TO MEET CRITERIA FOR CERTIFICATION.—Each
applicant for certification shall have 2 years from the date
of acceptance by the Secretary of the application during
which to provide to the Secretary evidence that the require-
ments of the certification have been met.
‘‘(C) PERIOD OF ISSUANCE.—An applicant which receives
a certification shall have 2 years from the date of issuance
of the certification in order to place the project in service
and to notify the Secretary that such project has been
so placed in service, and if such project is not placed
in service by that time period, then the certification shall
no longer be valid. If any certification is revoked under
this subparagraph, the amount of the limitation under
paragraph (2) shall be increased by the amount of the
credit with respect to such revoked certification.
‘‘(D) LOCATION OF PROJECT.—In the case of an applicant
which receives a certification, if the Secretary determines
that the project has been placed in service at a location
which is materially different than the location specified
in the application for such project, the certification shall
no longer be valid.
‘‘(4) CREDIT RATE CONDITIONED UPON WAGE AND
APPRENTICESHIP REQUIREMENTS.—
‘‘(A) BASE RATE.—For purposes of allocations under
this subsection, the amount of the credit determined under
H. R. 5376—153
subsection (a) shall be determined by substituting ‘6 per-
cent’ for ‘30 percent’.
‘‘(B) ALTERNATIVE RATE.—In the case of any project
which satisfies the requirements of paragraphs (5)(A) and
(6), subparagraph (A) shall not apply.
‘‘(5) PREVAILING WAGE REQUIREMENTS.—
‘‘(A) IN GENERAL.—The requirements described in this
subparagraph with respect to a project are that the tax-
payer shall ensure that any laborers and mechanics
employed by the taxpayer or any contractor or subcon-
tractor in the re-equipping, expansion, or establishment
of a manufacturing facility shall be paid wages at rates
not less than the prevailing rates for construction, alter-
ation, or repair of a similar character in the locality in
which such project is located as most recently determined
by the Secretary of Labor, in accordance with subchapter
IV of chapter 31 of title 40, United States Code.
‘‘(B) CORRECTION AND PENALTY RELATED TO FAILURE
TO SATISFY WAGE REQUIREMENTS.—Rules similar to the
rules of section 45(b)(7)(B) shall apply.
‘‘(6) APPRENTICESHIP REQUIREMENTS.—Rules similar to the
rules of section 45(b)(8) shall apply.
‘‘(7) DISCLOSURE OF ALLOCATIONS.—The Secretary shall,
upon making a certification under this subsection, publicly
disclose the identity of the applicant and the amount of the
credit with respect to such applicant.’’.
(b) MODIFICATION OF QUALIFYING ADVANCED ENERGY
PROJECTS.—Section 48C(c)(1)(A) is amended—
(1) by inserting ‘‘, any portion of the qualified investment
of which is certified by the Secretary under subsection (e)
as eligible for a credit under this section’’ after ‘‘means a
project’’,
(2) in clause (i)—
(A) by striking ‘‘a manufacturing facility for the produc-
tion of’’ and inserting ‘‘an industrial or manufacturing
facility for the production or recycling of’’,
(B) in clause (I), by inserting ‘‘water,’’ after ‘‘sun,’’,
(C) in clause (II), by striking ‘‘an energy storage system
for use with electric or hybrid-electric motor vehicles’’ and
inserting ‘‘energy storage systems and components’’,
(D) in clause (III), by striking ‘‘grids to support the
transmission of intermittent sources of renewable energy,
including storage of such energy’’ and inserting ‘‘grid mod-
ernization equipment or components’’,
(E) in subclause (IV), by striking ‘‘and sequester carbon
dioxide emissions’’ and inserting ‘‘, remove, use, or
sequester carbon oxide emissions’’,
(F) by striking subclause (V) and inserting the fol-
lowing:
‘‘(V) equipment designed to refine, electrolyze,
or blend any fuel, chemical, or product which is—
‘‘(aa) renewable, or
‘‘(bb) low-carbon and low-emission,’’,
(G) by striking subclause (VI),
(H) by redesignating subclause (VII) as subclause (IX),
(I) by inserting after subclause (V) the following new
subclauses:
H. R. 5376—154
‘‘(VI) property designed to produce energy con-
servation technologies (including residential,
commercial, and industrial applications),
‘‘(VII) light-, medium-, or heavy-duty electric
or fuel cell vehicles, as well as—
‘‘(aa) technologies, components, or mate-
rials for such vehicles, and
‘‘(bb) associated charging or refueling
infrastructure,
‘‘(VIII) hybrid vehicles with a gross vehicle
weight rating of not less than 14,000 pounds, as
well as technologies, components, or materials for
such vehicles, or’’, and
(J) in subclause (IX), as so redesignated, by striking
‘‘and’’ at the end, and
(3) by striking clause (ii) and inserting the following:
‘‘(ii) which re-equips an industrial or manufac-
turing facility with equipment designed to reduce
greenhouse gas emissions by at least 20 percent
through the installation of—
‘‘(I) low- or zero-carbon process heat systems,
‘‘(II) carbon capture, transport, utilization and
storage systems,
‘‘(III) energy efficiency and reduction in waste
from industrial processes, or
‘‘(IV) any other industrial technology designed
to reduce greenhouse gas emissions, as determined
by the Secretary, or
‘‘(iii) which re-equips, expands, or establishes an
industrial facility for the processing, refining, or
recycling of critical materials (as defined in section
7002(a) of the Energy Act of 2020 (30 U.S.C. 1606(a)).’’.
(c) CONFORMING AMENDMENT.—Subparagraph (A) of section
48C(c)(2) is amended to read as follows:
‘‘(A) which is necessary for—
‘‘(i) the production or recycling of property
described in clause (i) of paragraph (1)(A),
‘‘(ii) re-equipping an industrial or manufacturing
facility described in clause (ii) of such paragraph, or
‘‘(iii) re-equipping, expanding, or establishing an
industrial facility described in clause (iii) of such para-
graph,’’.
(d) DENIAL OF DOUBLE BENEFIT.—48C(f), as redesignated by
this section, is amended by striking ‘‘or 48B’’ and inserting ‘‘48B,
48E, 45Q, or 45V’’.
(e) EFFECTIVE DATE.—The amendments made by this section
shall take effect on January 1, 2023.
SEC. 13502. ADVANCED MANUFACTURING PRODUCTION CREDIT.
(a) IN GENERAL.—Subpart D of part IV of subchapter A of
chapter 1, as amended by the preceding provisions of this Act,
is amended by adding at the end the following new section:
‘‘SEC. 45X. ADVANCED MANUFACTURING PRODUCTION CREDIT.
‘‘(a) IN GENERAL.—
‘‘(1) ALLOWANCE OF CREDIT.—For purposes of section 38,
the advanced manufacturing production credit for any taxable
year is an amount equal to the sum of the credit amounts
H. R. 5376—155
determined under subsection (b) with respect to each eligible
component which is—
‘‘(A) produced by the taxpayer, and
‘‘(B) during the taxable year, sold by such taxpayer
to an unrelated person.
‘‘(2) PRODUCTION AND SALE MUST BE IN TRADE OR BUSI-
NESS.—Any eligible component produced and sold by the tax-
payer shall be taken into account only if the production and
sale described in paragraph (1) is in a trade or business of
the taxpayer.
‘‘(3) UNRELATED PERSON.—
‘‘(A) IN GENERAL.—For purposes of this subsection, a
taxpayer shall be treated as selling components to an unre-
lated person if such component is sold to such person
by a person related to the taxpayer.
‘‘(B) ELECTION.—
‘‘(i) IN GENERAL.—At the election of the taxpayer
(in such form and manner as the Secretary may pre-
scribe), a sale of components by such taxpayer to a
related person shall be deemed to have been made
to an unrelated person.
‘‘(ii) REQUIREMENT.—As a condition of, and prior
to, any election described in clause (i), the Secretary
may require such information or registration as the
Secretary deems necessary for purposes of preventing
duplication, fraud, or any improper or excessive
amount determined under paragraph (1).
‘‘(b) CREDIT AMOUNT.—
‘‘(1) IN GENERAL.—Subject to paragraph (3), the amount
determined under this subsection with respect to any eligible
component, including any eligible component it incorporates,
shall be equal to—
‘‘(A) in the case of a thin film photovoltaic cell or
a crystalline photovoltaic cell, an amount equal to the
product of—
‘‘(i) 4 cents, multiplied by
‘‘(ii) the capacity of such cell (expressed on a per
direct current watt basis),
‘‘(B) in the case of a photovoltaic wafer, $12 per square
meter,
‘‘(C) in the case of solar grade polysilicon, $3 per kilo-
gram,
‘‘(D) in the case of a polymeric backsheet, 40 cents
per square meter,
‘‘(E) in the case of a solar module, an amount equal
to the product of—
‘‘(i) 7 cents, multiplied by
‘‘(ii) the capacity of such module (expressed on
a per direct current watt basis),
‘‘(F) in the case of a wind energy component—
‘‘(i) if such component is a related offshore wind
vessel, an amount equal to 10 percent of the sales
price of such vessel, and
‘‘(ii) if such component is not described in clause
(i), an amount equal to the product of—
H. R. 5376—156
‘‘(I) the applicable amount with respect to such
component (as determined under paragraph
(2)(A)), multiplied by
‘‘(II) the total rated capacity (expressed on a
per watt basis) of the completed wind turbine for
which such component is designed,
‘‘(G) in the case of a torque tube, 87 cents per kilogram,
‘‘(H) in the case of a structural fastener, $2.28 per
kilogram,
‘‘(I) in the case of an inverter, an amount equal to
the product of—
‘‘(i) the applicable amount with respect to such
inverter (as determined under paragraph (2)(B)), multi-
plied by
‘‘(ii) the capacity of such inverter (expressed on
a per alternating current watt basis),
‘‘(J) in the case of electrode active materials, an amount
equal to 10 percent of the costs incurred by the taxpayer
with respect to production of such materials,
‘‘(K) in the case of a battery cell, an amount equal
to the product of—
‘‘(i) $35, multiplied by
‘‘(ii) subject to paragraph (4), the capacity of such
battery cell (expressed on a kilowatt-hour basis),
‘‘(L) in the case of a battery module, an amount equal
to the product of—
‘‘(i) $10 (or, in the case of a battery module which
does not use battery cells, $45), multiplied by
‘‘(ii) subject to paragraph (4), the capacity of such
battery module (expressed on a kilowatt-hour basis),
and
‘‘(M) in the case of any applicable critical mineral,
an amount equal to 10 percent of the costs incurred by
the taxpayer with respect to production of such mineral.
‘‘(2) APPLICABLE AMOUNTS.—
‘‘(A) WIND ENERGY COMPONENTS.—For purposes of
paragraph (1)(F)(ii), the applicable amount with respect
to any wind energy component shall be—
‘‘(i) in the case of a blade, 2 cents,
‘‘(ii) in the case of a nacelle, 5 cents,
‘‘(iii) in the case of a tower, 3 cents, and
‘‘(iv) in the case of an offshore wind foundation—
‘‘(I) which uses a fixed platform, 2 cents, or
‘‘(II) which uses a floating platform, 4 cents.
‘‘(B) INVERTERS.—For purposes of paragraph (1)(I), the
applicable amount with respect to any inverter shall be—
‘‘(i) in the case of a central inverter, 0.25 cents,
‘‘(ii) in the case of a utility inverter, 1.5 cents,
‘‘(iii) in the case of a commercial inverter, 2 cents,
‘‘(iv) in the case of a residential inverter, 6.5 cents,
and
‘‘(v) in the case of a microinverter or a distributed
wind inverter, 11 cents.
‘‘(3) PHASE OUT.—
‘‘(A) IN GENERAL.—Subject to subparagraph (C), in the
case of any eligible component sold after December 31,
2029, the amount determined under this subsection with
H. R. 5376—157
respect to such component shall be equal to the product
of—
‘‘(i) the amount determined under paragraph (1)
with respect to such component, as determined without
regard to this paragraph, multiplied by
‘‘(ii) the phase out percentage under subparagraph
(B).
‘‘(B) PHASE OUT PERCENTAGE.—The phase out percent-
age under this subparagraph is equal to—
‘‘(i) in the case of an eligible component sold during
calendar year 2030, 75 percent,
‘‘(ii) in the case of an eligible component sold
during calendar year 2031, 50 percent,
‘‘(iii) in the case of an eligible component sold
during calendar year 2032, 25 percent,
‘‘(iv) in the case of an eligible component sold
after December 31, 2032, 0 percent.
‘‘(C) EXCEPTION.—For purposes of determining the
amount under this subsection with respect to any
applicable critical mineral, this paragraph shall not apply.
‘‘(4) LIMITATION ON CAPACITY OF BATTERY CELLS AND BAT-
TERY MODULES.—
‘‘(A) IN GENERAL.—For purposes of subparagraph (K)(ii)
or (L)(ii) of paragraph (1), the capacity determined under
either subparagraph with respect to a battery cell or bat-
tery module shall not exceed a capacity-to-power ratio of
100:1.
‘‘(B) CAPACITY-TO-POWER RATIO.—For purposes of this
paragraph, the term ‘capacity-to-power ratio’ means, with
respect to a battery cell or battery module, the ratio of
the capacity of such cell or module to the maximum dis-
charge amount of such cell or module.
‘‘(c) DEFINITIONS.—For purposes of this section—
‘‘(1) ELIGIBLE COMPONENT.—
‘‘(A) IN GENERAL.—The term ‘eligible component’
means—
‘‘(i) any solar energy component,
‘‘(ii) any wind energy component,
‘‘(iii) any inverter described in subparagraphs (B)
through (G) of paragraph (2),
‘‘(iv) any qualifying battery component, and
‘‘(v) any applicable critical mineral.
‘‘(B) APPLICATION WITH OTHER CREDITS.—The term
‘eligible component’ shall not include any property which
is produced at a facility if the basis of any property which
is part of such facility is taken into account for purposes
of the credit allowed under section 48C after the date
of the enactment of this section.
‘‘(2) INVERTERS.—
‘‘(A) IN GENERAL.—The term ‘inverter’ means an end
product which is suitable to convert direct current elec-
tricity from 1 or more solar modules or certified distributed
wind energy systems into alternating current electricity.
‘‘(B) CENTRAL INVERTER.—The term ‘central inverter’
means an inverter which is suitable for large utility-scale
systems and has a capacity which is greater than 1,000
H. R. 5376—158
kilowatts (expressed on a per alternating current watt
basis).
‘‘(C) COMMERCIAL INVERTER.—The term ‘commercial
inverter’ means an inverter which—
‘‘(i) is suitable for commercial or utility-scale
applications,
‘‘(ii) has a rated output of 208, 480, 600, or 800
volt three-phase power, and
‘‘(iii) has a capacity which is not less than 20
kilowatts and not greater than 125 kilowatts
(expressed on a per alternating current watt basis).
‘‘(D) DISTRIBUTED WIND INVERTER.—
‘‘(i) IN GENERAL.—The term ‘distributed wind
inverter’ means an inverter which—
‘‘(I) is used in a residential or non-residential
system which utilizes 1 or more certified distrib-
uted wind energy systems, and
‘‘(II) has a rated output of not greater than
150 kilowatts.
‘‘(ii) CERTIFIED DISTRIBUTED WIND ENERGY
SYSTEM.—The term ‘certified distributed wind energy
system’ means a wind energy system which is certified
by an accredited certification agency to meet Standard
9.1-2009 of the American Wind Energy Association
(including any subsequent revisions to or modifications
of such Standard which have been approved by the
American National Standards Institute).
‘‘(E) MICROINVERTER.—The term ‘microinverter’ means
an inverter which—
‘‘(i) is suitable to connect with one solar module,
‘‘(ii) has a rated output of—
‘‘(I) 120 or 240 volt single-phase power, or
‘‘(II) 208 or 480 volt three-phase power, and
‘‘(iii) has a capacity which is not greater than
650 watts (expressed on a per alternating current watt
basis).
‘‘(F) RESIDENTIAL INVERTER.—The term ‘residential
inverter’ means an inverter which—
‘‘(i) is suitable for a residence,
‘‘(ii) has a rated output of 120 or 240 volt single-
phase power, and
‘‘(iii) has a capacity which is not greater than
20 kilowatts (expressed on a per alternating current
watt basis).
‘‘(G) UTILITY INVERTER.—The term ‘utility inverter’
means an inverter which—
‘‘(i) is suitable for commercial or utility-scale sys-
tems,
‘‘(ii) has a rated output of not less than 600 volt
three-phase power, and
‘‘(iii) has a capacity which is greater than 125
kilowatts and not greater than 1000 kilowatts
(expressed on a per alternating current watt basis)
‘‘(3) SOLAR ENERGY COMPONENT.—
‘‘(A) IN GENERAL.—The term ‘solar energy component’
means any of the following:
‘‘(i) Solar modules.
H. R. 5376—159
‘‘(ii) Photovoltaic cells.
‘‘(iii) Photovoltaic wafers.
‘‘(iv) Solar grade polysilicon.
‘‘(v) Torque tubes or structural fasteners.
‘‘(vi) Polymeric backsheets.
‘‘(B) ASSOCIATED DEFINITIONS.—
‘‘(i) PHOTOVOLTAIC CELL.—The term ‘photovoltaic
cell’ means the smallest semiconductor element of a
solar module which performs the immediate conversion
of light into electricity.
‘‘(ii) PHOTOVOLTAIC WAFER.—The term ‘photo-
voltaic wafer’ means a thin slice, sheet, or layer of
semiconductor material of at least 240 square centi-
meters—
‘‘(I) produced by a single manufacturer
either—
‘‘(aa) directly from molten or evaporated
solar grade polysilicon or deposition of solar
grade thin film semiconductor photon absorber
layer, or
‘‘(bb) through formation of an ingot from
molten polysilicon and subsequent slicing, and
‘‘(II) which comprises the substrate or absorber
layer of one or more photovoltaic cells.
‘‘(iii) POLYMERIC BACKSHEET.—The term ‘polymeric
backsheet’ means a sheet on the back of a solar module
which acts as an electric insulator and protects the
inner components of such module from the surrounding
environment.
‘‘(iv) SOLAR GRADE POLYSILICON.—The term ‘solar
grade polysilicon’ means silicon which is—
‘‘(I) suitable for use in photovoltaic manufac-
turing, and
‘‘(II) purified to a minimum purity of
99.999999 percent silicon by mass.
‘‘(v) SOLAR MODULE.—The term ‘solar module’
means the connection and lamination of photovoltaic
cells into an environmentally protected final assembly
which is—
‘‘(I) suitable to generate electricity when
exposed to sunlight, and
‘‘(II) ready for installation without an addi-
tional manufacturing process.
‘‘(vi) SOLAR TRACKER.—The term ‘solar tracker’
means a mechanical system that moves solar modules
according to the position of the sun and to increase
energy output.
‘‘(vii) SOLAR TRACKER COMPONENTS.—
‘‘(I) TORQUE TUBE.—The term ‘torque tube’
means a structural steel support element
(including longitudinal purlins) which—
‘‘(aa) is part of a solar tracker,
‘‘(bb) is of any cross-sectional shape,
‘‘(cc) may be assembled from individually
manufactured segments,
‘‘(dd) spans longitudinally between
foundation posts,
H. R. 5376—160
‘‘(ee) supports solar panels and is con-
nected to a mounting attachment for solar
panels (with or without separate module inter-
face rails), and
‘‘(ff) is rotated by means of a drive system.
‘‘(II) STRUCTURAL FASTENER.—The term ‘struc-
tural fastener’ means a component which is used—
‘‘(aa) to connect the mechanical and drive
system components of a solar tracker to the
foundation of such solar tracker,
‘‘(bb) to connect torque tubes to drive
assemblies, or
‘‘(cc) to connect segments of torque tubes
to one another.
‘‘(4) WIND ENERGY COMPONENT.—
‘‘(A) IN GENERAL.—The term ‘wind energy component’
means any of the following:
‘‘(i) Blades.
‘‘(ii) Nacelles.
‘‘(iii) Towers.
‘‘(iv) Offshore wind foundations.
‘‘(v) Related offshore wind vessels.
‘‘(B) ASSOCIATED DEFINITIONS.—
‘‘(i) BLADE.—The term ‘blade’ means an airfoil-
shaped blade which is responsible for converting wind
energy to low-speed rotational energy.
‘‘(ii) OFFSHORE WIND FOUNDATION.—The term ‘off-
shore wind foundation’ means the component
(including transition piece) which secures an offshore
wind tower and any above-water turbine components
to the seafloor using—
‘‘(I) fixed platforms, such as offshore wind
monopiles, jackets, or gravity-based foundations,
or
‘‘(II) floating platforms and associated mooring
systems.
‘‘(iii) NACELLE.—The term ‘nacelle’ means the
assembly of the drivetrain and other tower-top compo-
nents of a wind turbine (with the exception of the
blades and the hub) within their cover housing.
‘‘(iv) RELATED OFFSHORE WIND VESSEL.—The term
‘related offshore wind vessel’ means any vessel which
is purpose-built or retrofitted for purposes of the
development, transport, installation, operation, or
maintenance of offshore wind energy components.
‘‘(v) TOWER.—The term ‘tower’ means a tubular
or lattice structure which supports the nacelle and
rotor of a wind turbine.
‘‘(5) QUALIFYING BATTERY COMPONENT.—
‘‘(A) IN GENERAL.—The term ‘qualifying battery compo-
nent’ means any of the following:
‘‘(i) Electrode active materials.
‘‘(ii) Battery cells.
‘‘(iii) Battery modules.
‘‘(B) ASSOCIATED DEFINITIONS.—
‘‘(i) ELECTRODE ACTIVE MATERIAL.—The term ‘elec-
trode active material’ means cathode materials, anode
H. R. 5376—161
materials, anode foils, and electrochemically active
materials, including solvents, additives, and electrolyte
salts that contribute to the electrochemical processes
necessary for energy storage .
‘‘(ii) BATTERY CELL.—The term ‘battery cell’ means
an electrochemical cell—
‘‘(I) comprised of 1 or more positive electrodes
and 1 or more negative electrodes,
‘‘(II) with an energy density of not less than
100 watt-hours per liter, and
‘‘(III) capable of storing at least 12 watt-hours
of energy.
‘‘(iii) BATTERY MODULE.—The term ‘battery module’
means a module—
‘‘(I)(aa) in the case of a module using battery
cells, with 2 or more battery cells which are config-
ured electrically, in series or parallel, to create
voltage or current, as appropriate, to a specified
end use, or
‘‘(bb) with no battery cells, and
‘‘(II) with an aggregate capacity of not less
than 7 kilowatt-hours (or, in the case of a module
for a hydrogen fuel cell vehicle, not less than 1
kilowatt-hour).
‘‘(6) APPLICABLE CRITICAL MINERALS.—The term ‘applicable
critical mineral’ means any of the following:
‘‘(A) ALUMINUM.—Aluminum which is—
‘‘(i) converted from bauxite to a minimum purity
of 99 percent alumina by mass, or
‘‘(ii) purified to a minimum purity of 99.9 percent
aluminum by mass.
‘‘(B) ANTIMONY.—Antimony which is—
‘‘(i) converted to antimony trisulfide concentrate
with a minimum purity of 90 percent antimony
trisulfide by mass, or
‘‘(ii) purified to a minimum purity of 99.65 percent
antimony by mass.
‘‘(C) BARITE.—Barite which is barium sulfate purified
to a minimum purity of 80 percent barite by mass.
‘‘(D) BERYLLIUM.—Beryllium which is—
‘‘(i) converted to copper-beryllium master alloy, or
‘‘(ii) purified to a minimum purity of 99 percent
beryllium by mass.
‘‘(E) CERIUM.—Cerium which is—
‘‘(i) converted to cerium oxide which is purified
to a minimum purity of 99.9 percent cerium oxide
by mass, or
‘‘(ii) purified to a minimum purity of 99 percent
cerium by mass.
‘‘(F) CESIUM.—Cesium which is—
‘‘(i) converted to cesium formate or cesium car-
bonate, or
‘‘(ii) purified to a minimum purity of 99 percent
cesium by mass.
‘‘(G) CHROMIUM.—Chromium which is—
‘‘(i) converted to ferrochromium consisting of not
less than 60 percent chromium by mass, or
H. R. 5376—162
‘‘(ii) purified to a minimum purity of 99 percent
chromium by mass.
‘‘(H) COBALT.—Cobalt which is—
‘‘(i) converted to cobalt sulfate, or
‘‘(ii) purified to a minimum purity of 99.6 percent
cobalt by mass.
‘‘(I) DYSPROSIUM.—Dysprosium which is—
‘‘(i) converted to not less than 99 percent pure
dysprosium iron alloy by mass, or
‘‘(ii) purified to a minimum purity of 99 percent
dysprosium by mass.
‘‘(J) EUROPIUM.—Europium which is—
‘‘(i) converted to europium oxide which is purified
to a minimum purity of 99.9 percent europium oxide
by mass, or
‘‘(ii) purified to a minimum purity of 99 percent
by mass.
‘‘(K) FLUORSPAR.—Fluorspar which is—
‘‘(i) converted to fluorspar which is purified to a
minimum purity of 97 percent calcium fluoride by
mass, or
‘‘(ii) purified to a minimum purity of 99 percent
fluorspar by mass.
‘‘(L) GADOLINIUM.—Gadolinium which is—
‘‘(i) converted to gadolinium oxide which is purified
to a minimum purity of 99.9 percent gadolinium oxide
by mass, or
‘‘(ii) purified to a minimum purity of 99 percent
gadolinium by mass.
‘‘(M) GERMANIUM.—Germanium which is—
‘‘(i) converted to germanium tetrachloride, or
‘‘(ii) purified to a minimum purity of 99.99 percent
germanium by mass.
‘‘(N) GRAPHITE.—Graphite which is purified to a min-
imum purity of 99.9 percent graphitic carbon by mass.
‘‘(O) INDIUM.—Indium which is—
‘‘(i) converted to—
‘‘(I) indium tin oxide, or
‘‘(II) indium oxide which is purified to a min-
imum purity of 99.9 percent indium oxide by mass,
or
‘‘(ii) purified to a minimum purity of 99 percent
indium by mass.
‘‘(P) LITHIUM.—Lithium which is—
‘‘(i) converted to lithium carbonate or lithium
hydroxide, or
‘‘(ii) purified to a minimum purity of 99.9 percent
lithium by mass.
‘‘(Q) MANGANESE.—Manganese which is—
‘‘(i) converted to manganese sulphate, or
‘‘(ii) purified to a minimum purity of 99.7 percent
manganese by mass.
‘‘(R) NEODYMIUM.—Neodymium which is—
‘‘(i) converted to neodymium-praseodymium oxide
which is purified to a minimum purity of 99 percent
neodymium-praseodymium oxide by mass,
H. R. 5376—163
‘‘(ii) converted to neodymium oxide which is puri-
fied to a minimum purity of 99.5 percent neodymium
oxide by mass
‘‘(iii) purified to a minimum purity of 99.9 percent
neodymium by mass.
‘‘(S) NICKEL.—Nickel which is—
‘‘(i) converted to nickel sulphate, or
‘‘(ii) purified to a minimum purity of 99 percent
nickel by mass.
‘‘(T) NIOBIUM.—Niobium which is—
‘‘(i) converted to ferronibium, or
‘‘(ii) purified to a minimum purity of 99 percent
niobium by mass.
‘‘(U) TELLURIUM.—Tellurium which is—
‘‘(i) converted to cadmium telluride, or
‘‘(ii) purified to a minimum purity of 99 percent
tellurium by mass.
‘‘(V) TIN.—Tin which is purified to low alpha emitting
tin which—
‘‘(i) has a purity of greater than 99.99 percent
by mass, and
‘‘(ii) possesses an alpha emission rate of not greater
than 0.01 counts per hour per centimeter square.
‘‘(W) TUNGSTEN.—Tungsten which is converted to
ammonium paratungstate or ferrotungsten.
‘‘(X) VANADIUM.—Vanadium which is converted to
ferrovanadium or vanadium pentoxide.
‘‘(Y) YTTRIUM.—Yttrium which is—
‘‘(i) converted to yttrium oxide which is purified
to a minimum purity of 99.999 percent yttrium oxide
by mass, or
‘‘(ii) purified to a minimum purity of 99.9 percent
yttrium by mass.
‘‘(Z) OTHER MINERALS.—Any of the following minerals,
provided that such mineral is purified to a minimum purity
of 99 percent by mass:
‘‘(i) Arsenic.
‘‘(ii) Bismuth.
‘‘(iii) Erbium.
‘‘(iv) Gallium.
‘‘(v) Hafnium.
‘‘(vi) Holmium.
‘‘(vii) Iridium.
‘‘(viii) Lanthanum.
‘‘(ix) Lutetium.
‘‘(x) Magnesium.
‘‘(xi) Palladium.
‘‘(xii) Platinum.
‘‘(xiii) Praseodymium.
‘‘(xiv) Rhodium.
‘‘(xv) Rubidium.
‘‘(xvi) Ruthenium.
‘‘(xvii) Samarium.
‘‘(xviii) Scandium.
‘‘(xix) Tantalum.
‘‘(xx) Terbium.
‘‘(xxi) Thulium.
H. R. 5376—164
‘‘(xxii) Titanium.
‘‘(xxiii) Ytterbium.
‘‘(xxiv) Zinc.
‘‘(xxv) Zirconium.
‘‘(d) SPECIAL RULES.—In this section—
‘‘(1) RELATED PERSONS.—Persons shall be treated as related
to each other if such persons would be treated as a single
employer under the regulations prescribed under section 52(b).
‘‘(2) ONLY PRODUCTION IN THE UNITED STATES TAKEN INTO
ACCOUNT.—Sales shall be taken into account under this section
only with respect to eligible components the production of which
is within—
‘‘(A) the United States (within the meaning of section
638(1)), or
‘‘(B) a possession of the United States (within the
meaning of section 638(2)).
‘‘(3) PASS-THRU IN THE CASE OF ESTATES AND TRUSTS.—
Under regulations prescribed by the Secretary, rules similar
to the rules of subsection (d) of section 52 shall apply.
‘‘(4) SALE OF INTEGRATED COMPONENTS.—For purposes of
this section, a person shall be treated as having sold an eligible
component to an unrelated person if such component is
integrated, incorporated, or assembled into another eligible
component which is sold to an unrelated person.’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 38(b) of the Internal Revenue Code of 1986,
as amended by the preceding provisions of this Act, is
amended—
(A) in paragraph (36), by striking ‘‘plus’’ at the end,
(B) in paragraph (37), by striking the period at the
end and inserting ‘‘, plus’’, and
(C) by adding at the end the following new paragraph:
‘‘(38) the advanced manufacturing production credit deter-
mined under section 45X(a).’’.
(2) The table of sections for subpart D of part IV of sub-
chapter A of chapter 1, as amended by the preceding provisions
of this Act, is amended by adding at the end the following
new item:
‘‘Sec. 45X. Advanced manufacturing production credit.’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall apply to components produced and sold after December 31,
2022.
PART 6—SUPERFUND
SEC. 13601. REINSTATEMENT OF SUPERFUND.
(a) HAZARDOUS SUBSTANCE SUPERFUND FINANCING RATE.—
(1) EXTENSION.—Section 4611 is amended by striking sub-
section (e).
(2) ADJUSTMENT FOR INFLATION.—
(A) Section 4611(c)(2)(A) is amended by striking ‘‘9.7
cents’’ and inserting ‘‘16.4 cents’’.
(B) Section 4611(c) is amended by adding at the end
the following:
‘‘(3) ADJUSTMENT FOR INFLATION.—
H. R. 5376—165
‘‘(A) IN GENERAL.—In the case of a year beginning
after 2023, the amount in paragraph (2)(A) shall be
increased by an amount equal to—
‘‘(i) such amount, multiplied by
‘‘(ii) the cost-of-living adjustment determined
under section 1(f)(3) for the calendar year, determined
by substituting ‘calendar year 2022’ for ‘calendar year
2016’ in subparagraph (A)(ii) thereof.
‘‘(B) ROUNDING.—If any amount as adjusted under
subparagraph (A) is not a multiple of $0.01, such amount
shall be rounded to the next lowest multiple of $0.01.’’.
(b) AUTHORITY FOR ADVANCES.—Section 9507(d)(3)(B) is
amended by striking ‘‘December 31, 1995’’ and inserting ‘‘December
31, 2032’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall take effect on January 1, 2023.
PART 7—INCENTIVES FOR CLEAN
ELECTRICITY AND CLEAN TRANSPORTATION
SEC. 13701. CLEAN ELECTRICITY PRODUCTION CREDIT.
(a) IN GENERAL.—Subpart D of part IV of subchapter A of
chapter 1, as amended by the preceding provisions of this Act,
is amended by adding at the end the following new section:
‘‘SEC. 45Y. CLEAN ELECTRICITY PRODUCTION CREDIT.
‘‘(a) AMOUNT OF CREDIT.—
‘‘(1) IN GENERAL.—For purposes of section 38, the clean
electricity production credit for any taxable year is an amount
equal to the product of—
‘‘(A) the kilowatt hours of electricity—
‘‘(i) produced by the taxpayer at a qualified facility,
and
‘‘(ii)(I) sold by the taxpayer to an unrelated person
during the taxable year, or
‘‘(II) in the case of a qualified facility which is
equipped with a metering device which is owned and
operated by an unrelated person, sold, consumed, or
stored by the taxpayer during the taxable year, multi-
plied by
‘‘(B) the applicable amount with respect to such quali-
fied facility.
‘‘(2) APPLICABLE AMOUNT.—
‘‘(A) BASE AMOUNT.—Subject to subsection (g)(7), in
the case of any qualified facility which is not described
in clause (i) or (ii) of subparagraph (B) and does not satisfy
the requirements described in clause (iii) of such subpara-
graph, the applicable amount shall be 0.3 cents.
‘‘(B) ALTERNATIVE AMOUNT.—Subject to subsection
(g)(7), in the case of any qualified facility—
‘‘(i) with a maximum net output of less than 1
megawatt (as measured in alternating current),
‘‘(ii) the construction of which begins prior to the
date that is 60 days after the Secretary publishes
guidance with respect to the requirements of para-
graphs (9) and (10) of subsection (g), or
‘‘(iii) which—
H. R. 5376—166
‘‘(I) satisfies the requirements under para-
graph (9) of subsection (g), and
‘‘(II) with respect to the construction of such
facility, satisfies the requirements under para-
graph (10) of subsection (g),
the applicable amount shall be 1.5 cents.
‘‘(b) QUALIFIED FACILITY.—
‘‘(1) IN GENERAL.—
‘‘(A) DEFINITION.—Subject to subparagraphs (B), (C),
and (D), the term ‘qualified facility’ means a facility owned
by the taxpayer—
‘‘(i) which is used for the generation of electricity,
‘‘(ii) which is placed in service after December 31,
2024, and
‘‘(iii) for which the greenhouse gas emissions rate
(as determined under paragraph (2)) is not greater
than zero.
‘‘(B) 10-YEAR PRODUCTION CREDIT.—For purposes of this
section, a facility shall only be treated as a qualified facility
during the 10-year period beginning on the date the facility
was originally placed in service.
‘‘(C) EXPANSION OF FACILITY; INCREMENTAL PRODUC-
TION.—The term ‘qualified facility’ shall include either of
the following in connection with a facility described in
subparagraph (A) (without regard to clause (ii) of such
subparagraph) which was placed in service before January
1, 2025, but only to the extent of the increased amount
of electricity produced at the facility by reason of the fol-
lowing:
‘‘(i) A new unit which is placed in service after
December 31, 2024.
‘‘(ii) Any additions of capacity which are placed
in service after December 31, 2024.
‘‘(D) COORDINATION WITH OTHER CREDITS.—The term
‘qualified facility’ shall not include any facility for which
a credit determined under section 45, 45J, 45Q, 45U, 48,
48A, or 48E is allowed under section 38 for the taxable
year or any prior taxable year.
‘‘(2) GREENHOUSE GAS EMISSIONS RATE.—
‘‘(A) IN GENERAL.—For purposes of this section, the
term ‘greenhouse gas emissions rate’ means the amount
of greenhouse gases emitted into the atmosphere by a
facility in the production of electricity, expressed as grams
of CO2e per KWh.
‘‘(B) FUEL COMBUSTION AND GASIFICATION.—In the case
of a facility which produces electricity through combustion
or gasification, the greenhouse gas emissions rate for such
facility shall be equal to the net rate of greenhouse gases
emitted into the atmosphere by such facility (taking into
account lifecycle greenhouse gas emissions, as described
in section 211(o)(1)(H) of the Clean Air Act (42 U.S.C.
7545(o)(1)(H))) in the production of electricity, expressed
as grams of CO2e per KWh.
‘‘(C) ESTABLISHMENT OF EMISSIONS RATES FOR FACILI-
TIES.—
H. R. 5376—167
‘‘(i) PUBLISHING EMISSIONS RATES.—The Secretary
shall annually publish a table that sets forth the green-
house gas emissions rates for types or categories of
facilities, which a taxpayer shall use for purposes of
this section.
‘‘(ii) PROVISIONAL EMISSIONS RATE.—In the case of
any facility for which an emissions rate has not been
established by the Secretary, a taxpayer which owns
such facility may file a petition with the Secretary
for determination of the emissions rate with respect
to such facility.
‘‘(D) CARBON CAPTURE AND SEQUESTRATION EQUIP-
MENT.—For purposes of this subsection, the amount of
greenhouse gases emitted into the atmosphere by a facility
in the production of electricity shall not include any quali-
fied carbon dioxide that is captured by the taxpayer and—
‘‘(i) pursuant to any regulations established under
paragraph (2) of section 45Q(f), disposed of by the
taxpayer in secure geological storage, or
‘‘(ii) utilized by the taxpayer in a manner described
in paragraph (5) of such section.
‘‘(c) INFLATION ADJUSTMENT.—
‘‘(1) IN GENERAL.—In the case of a calendar year beginning
after 2024, the 0.3 cent amount in paragraph (2)(A) of sub-
section (a) and the 1.5 cent amount in paragraph (2)(B) of
such subsection shall each be adjusted by multiplying such
amount by the inflation adjustment factor for the calendar
year in which the sale, consumption, or storage of the electricity
occurs. If the 0.3 cent amount as increased under this para-
graph is not a multiple of 0.05 cent, such amount shall be
rounded to the nearest multiple of 0.05 cent. If the 1.5 cent
amount as increased under this paragraph is not a multiple
of 0.1 cent, such amount shall be rounded to the nearest mul-
tiple of 0.1 cent.
‘‘(2) ANNUAL COMPUTATION.—The Secretary shall, not later
than April 1 of each calendar year, determine and publish
in the Federal Register the inflation adjustment factor for such
calendar year in accordance with this subsection.
‘‘(3) INFLATION ADJUSTMENT FACTOR.—The term ‘inflation
adjustment factor’ means, with respect to a calendar year,
a fraction the numerator of which is the GDP implicit price
deflator for the preceding calendar year and the denominator
of which is the GDP implicit price deflator for the calendar
year 1992. The term ‘GDP implicit price deflator’ means the
most recent revision of the implicit price deflator for the gross
domestic product as computed and published by the Department
of Commerce before March 15 of the calendar year.
‘‘(d) CREDIT PHASE-OUT.—
‘‘(1) IN GENERAL.—The amount of the clean electricity
production credit under subsection (a) for any qualified facility
the construction of which begins during a calendar year
described in paragraph (2) shall be equal to the product of—
‘‘(A) the amount of the credit determined under sub-
section (a) without regard to this subsection, multiplied
by
‘‘(B) the phase-out percentage under paragraph (2).
H. R. 5376—168
‘‘(2) PHASE-OUT PERCENTAGE.—The phase-out percentage
under this paragraph is equal to—
‘‘(A) for a facility the construction of which begins
during the first calendar year following the applicable year,
100 percent,
‘‘(B) for a facility the construction of which begins
during the second calendar year following the applicable
year, 75 percent,
‘‘(C) for a facility the construction of which begins
during the third calendar year following the applicable
year, 50 percent, and
‘‘(D) for a facility the construction of which begins
during any calendar year subsequent to the calendar year
described in subparagraph (C), 0 percent.
‘‘(3) APPLICABLE YEAR.—For purposes of this subsection,
the term ‘applicable year’ means the later of—
‘‘(A) the calendar year in which the Secretary deter-
mines that the annual greenhouse gas emissions from the
production of electricity in the United States are equal
to or less than 25 percent of the annual greenhouse gas
emissions from the production of electricity in the United
States for calendar year 2022, or
‘‘(B) 2032.
‘‘(e) DEFINITIONS.—For purposes of this section:
‘‘(1) CO2e PER KWh.—The term ‘CO2e per KWh’ means,
with respect to any greenhouse gas, the equivalent carbon
dioxide (as determined based on global warming potential) per
kilowatt hour of electricity produced.
‘‘(2) GREENHOUSE GAS.—The term ‘greenhouse gas’ has the
same meaning given such term under section 211(o)(1)(G) of
the Clean Air Act (42 U.S.C. 7545(o)(1)(G)), as in effect on
the date of the enactment of this section.
‘‘(3) QUALIFIED CARBON DIOXIDE.—The term ‘qualified
carbon dioxide’ means carbon dioxide captured from an indus-
trial source which—
‘‘(A) would otherwise be released into the atmosphere
as industrial emission of greenhouse gas,
‘‘(B) is measured at the source of capture and verified
at the point of disposal or utilization, and
‘‘(C) is captured and disposed or utilized within the
United States (within the meaning of section 638(1)) or
a possession of the United States (within the meaning
of section 638(2)).
‘‘(f) GUIDANCE.—Not later than January 1, 2025, the Secretary
shall issue guidance regarding implementation of this section,
including calculation of greenhouse gas emission rates for qualified
facilities and determination of clean electricity production credits
under this section.
‘‘(g) SPECIAL RULES.—
‘‘(1) ONLY PRODUCTION IN THE UNITED STATES TAKEN INTO
ACCOUNT.—Consumption, sales, or storage shall be taken into
account under this section only with respect to electricity the
production of which is within—
‘‘(A) the United States (within the meaning of section
638(1)), or
‘‘(B) a possession of the United States (within the
meaning of section 638(2)).
H. R. 5376—169
‘‘(2) COMBINED HEAT AND POWER SYSTEM PROPERTY.—
‘‘(A) IN GENERAL.—For purposes of subsection (a)—
‘‘(i) the kilowatt hours of electricity produced by
a taxpayer at a qualified facility shall include any
production in the form of useful thermal energy by
any combined heat and power system property within
such facility, and
‘‘(ii) the amount of greenhouse gases emitted into
the atmosphere by such facility in the production of
such useful thermal energy shall be included for pur-
poses of determining the greenhouse gas emissions
rate for such facility.
‘‘(B) COMBINED HEAT AND POWER SYSTEM PROPERTY.—
For purposes of this paragraph, the term ‘combined heat
and power system property’ has the same meaning given
such term by section 48(c)(3) (without regard to subpara-
graphs (A)(iv), (B), and (D) thereof).
‘‘(C) CONVERSION FROM BTU TO KWH.—
‘‘(i) IN GENERAL.—For purposes of subparagraph
(A)(i), the amount of kilowatt hours of electricity pro-
duced in the form of useful thermal energy shall be
equal to the quotient of—
‘‘(I) the total useful thermal energy produced
by the combined heat and power system property
within the qualified facility, divided by
‘‘(II) the heat rate for such facility.
‘‘(ii) HEAT RATE.—For purposes of this subpara-
graph, the term ‘heat rate’ means the amount of energy
used by the qualified facility to generate 1 kilowatt
hour of electricity, expressed as British thermal units
per net kilowatt hour generated.
‘‘(3) PRODUCTION ATTRIBUTABLE TO THE TAXPAYER.—In the
case of a qualified facility in which more than 1 person has
an ownership interest, except to the extent provided in regula-
tions prescribed by the Secretary, production from the facility
shall be allocated among such persons in proportion to their
respective ownership interests in the gross sales from such
facility.
‘‘(4) RELATED PERSONS.—Persons shall be treated as related
to each other if such persons would be treated as a single
employer under the regulations prescribed under section 52(b).
In the case of a corporation which is a member of an affiliated
group of corporations filing a consolidated return, such corpora-
tion shall be treated as selling electricity to an unrelated person
if such electricity is sold to such a person by another member
of such group.
‘‘(5) PASS-THRU IN THE CASE OF ESTATES AND TRUSTS.—
Under regulations prescribed by the Secretary, rules similar
to the rules of subsection (d) of section 52 shall apply.
‘‘(6) ALLOCATION OF CREDIT TO PATRONS OF AGRICULTURAL
COOPERATIVE.—
‘‘(A) ELECTION TO ALLOCATE.—
‘‘(i) IN GENERAL.—In the case of an eligible coopera-
tive organization, any portion of the credit determined
under subsection (a) for the taxable year may, at the
election of the organization, be apportioned among
patrons of the organization on the basis of the amount
H. R. 5376—170
of business done by the patrons during the taxable
year.
‘‘(ii) FORM AND EFFECT OF ELECTION.—An election
under clause (i) for any taxable year shall be made
on a timely filed return for such year. Such election,
once made, shall be irrevocable for such taxable year.
Such election shall not take effect unless the organiza-
tion designates the apportionment as such in a written
notice mailed to its patrons during the payment period
described in section 1382(d).
‘‘(B) TREATMENT OF ORGANIZATIONS AND PATRONS.—
The amount of the credit apportioned to any patrons under
subparagraph (A)—
‘‘(i) shall not be included in the amount determined
under subsection (a) with respect to the organization
for the taxable year, and
‘‘(ii) shall be included in the amount determined
under subsection (a) for the first taxable year of each
patron ending on or after the last day of the payment
period (as defined in section 1382(d)) for the taxable
year of the organization or, if earlier, for the taxable
year of each patron ending on or after the date on
which the patron receives notice from the cooperative
of the apportionment.
‘‘(C) SPECIAL RULES FOR DECREASE IN CREDITS FOR TAX-
ABLE YEAR.—If the amount of the credit of a cooperative
organization determined under subsection (a) for a taxable
year is less than the amount of such credit shown on
the return of the cooperative organization for such year,
an amount equal to the excess of—
‘‘(i) such reduction, over
‘‘(ii) the amount not apportioned to such patrons
under subparagraph (A) for the taxable year,
shall be treated as an increase in tax imposed by this
chapter on the organization. Such increase shall not be
treated as tax imposed by this chapter for purposes of
determining the amount of any credit under this chapter.
‘‘(D) ELIGIBLE COOPERATIVE DEFINED.—For purposes of
this section, the term ‘eligible cooperative’ means a coopera-
tive organization described in section 1381(a) which is
owned more than 50 percent by agricultural producers
or by entities owned by agricultural producers. For this
purpose an entity owned by an agricultural producer is
one that is more than 50 percent owned by agricultural
producers.
‘‘(7) INCREASE IN CREDIT IN ENERGY COMMUNITIES.—In the
case of any qualified facility which is located in an energy
community (as defined in section 45(b)(11)(B)), for purposes
of determining the amount of the credit under subsection (a)
with respect to any electricity produced by the taxpayer at
such facility during the taxable year, the applicable amount
under paragraph (2) of such subsection shall be increased by
an amount equal to 10 percent of the amount otherwise in
effect under such paragraph.
‘‘(8) CREDIT REDUCED FOR TAX-EXEMPT BONDS.—Rules
similar to the rules of section 45(b)(3) shall apply.
H. R. 5376—171
‘‘(9) WAGE REQUIREMENTS.—Rules similar to the rules of
section 45(b)(7) shall apply.
‘‘(10) APPRENTICESHIP REQUIREMENTS.—Rules similar to the
rules of section 45(b)(8) shall apply.
‘‘(11) DOMESTIC CONTENT BONUS CREDIT AMOUNT.—
‘‘(A) IN GENERAL.—In the case of any qualified facility
which satisfies the requirement under subparagraph (B)(i),
the amount of the credit determined under subsection (a)
shall be increased by an amount equal to 10 percent of
the amount so determined (as determined without applica-
tion of paragraph (7)).
‘‘(B) REQUIREMENT.—
‘‘(i) IN GENERAL.—The requirement described in
this subclause is satisfied with respect to any qualified
facility if the taxpayer certifies to the Secretary (at
such time, and in such form and manner, as the Sec-
retary may prescribe) that any steel, iron, or manufac-
tured product which is a component of such facility
(upon completion of construction) was produced in the
United States (as determined under section 661 of
title 49, Code of Federal Regulations).
‘‘(ii) STEEL AND IRON.—In the case of steel or iron,
clause (i) shall be applied in a manner consistent with
section 661.5 of title 49, Code of Federal Regulations.
‘‘(iii) MANUFACTURED PRODUCT.—For purposes of
clause (i), the manufactured products which are compo-
nents of a qualified facility upon completion of
construction shall be deemed to have been produced
in the United States if not less than the adjusted
percentage (as determined under subparagraph (C))
of the total costs of all such manufactured products
of such facility are attributable to manufactured prod-
ucts (including components) which are mined, pro-
duced, or manufactured in the United States.
‘‘(C) ADJUSTED PERCENTAGE.—
‘‘(i) IN GENERAL.—Subject to subclause (ii), for pur-
poses of subparagraph (B)(iii), the adjusted percentage
shall be—
‘‘(I) in the case of a facility the construction
of which begins before January 1, 2025, 40 percent,
‘‘(II) in the case of a facility the construction
of which begins after December 31, 2024, and
before January 1, 2026, 45 percent,
‘‘(III) in the case of a facility the construction
of which begins after December 31, 2025, and
before January 1, 2027, 50 percent, and
‘‘(IV) in the case of a facility the construction
of which begins after December 31, 2026, 55 per-
cent.
‘‘(ii) OFFSHORE WIND FACILITY.—For purposes of
subparagraph (B)(iii), in the case of a qualified facility
which is an offshore wind facility, the adjusted percent-
age shall be—
‘‘(I) in the case of a facility the construction
of which begins before January 1, 2025, 20 percent,
H. R. 5376—172
‘‘(II) in the case of a facility the construction
of which begins after December 31, 2024, and
before January 1, 2026, 27.5 percent,
‘‘(III) in the case of a facility the construction
of which begins after December 31, 2025, and
before January 1, 2027, 35 percent,
‘‘(IV) in the case of a facility the construction
of which begins after December 31, 2026, and
before January 1, 2028, 45 percent, and
‘‘(V) in the case of a facility the construction
of which begins after December 31, 2027, 55 per-
cent.
‘‘(12) PHASEOUT FOR ELECTIVE PAYMENT.—
‘‘(A) IN GENERAL.—In the case of a taxpayer making
an election under section 6417 with respect to a credit
under this section, the amount of such credit shall be
replaced with—
‘‘(i) the value of such credit (determined without
regard to this paragraph), multiplied by
‘‘(ii) the applicable percentage.
‘‘(B) 100 PERCENT APPLICABLE PERCENTAGE FOR CER-
TAIN QUALIFIED FACILITIES.—In the case of any qualified
facility—
‘‘(i) which satisfies the requirements under para-
graph (11)(B), or
‘‘(ii) with a maximum net output of less than 1
megawatt (as measured in alternating current),
the applicable percentage shall be 100 percent.
‘‘(C) PHASED DOMESTIC CONTENT REQUIREMENT.—Sub-
ject to subparagraph (D), in the case of any qualified facility
which is not described in subparagraph (B), the applicable
percentage shall be—
‘‘(i) if construction of such facility began before
January 1, 2024, 100 percent,
‘‘(ii) if construction of such facility began in cal-
endar year 2024, 90 percent,
‘‘(iii) if construction of such facility began in cal-
endar year 2025, 85 percent, and
‘‘(iv) if construction of such facility began after
December 31, 2025, 0 percent.
‘‘(D) EXCEPTION.—
‘‘(i) IN GENERAL.—For purposes of this paragraph,
the Secretary shall provide exceptions to the require-
ments under this paragraph if—
‘‘(I) the inclusion of steel, iron, or manufac-
tured products which are produced in the United
States increases the overall costs of construction
of qualified facilities by more than 25 percent,
or
‘‘(II) relevant steel, iron, or manufactured
products are not produced in the United States
in sufficient and reasonably available quantities
or of a satisfactory quality.
‘‘(ii) APPLICABLE PERCENTAGE.—In any case in
which the Secretary provides an exception pursuant
to clause (i), the applicable percentage shall be 100
percent.’’.
H. R. 5376—173
(b) CONFORMING AMENDMENTS.—
(1) Section 38(b), as amended by the preceding provisions
of this Act, is amended—
(A) in paragraph (37), by striking ‘‘plus’’ at the end,
(B) in paragraph (38), by striking the period at the
end and inserting ‘‘, plus’’, and
(C) by adding at the end the following new paragraph:
‘‘(39) the clean electricity production credit determined
under section 45Y(a).’’.
(2) The table of sections for subpart D of part IV of sub-
chapter A of chapter 1, as amended by the preceding provisions
of this Act, is amended by adding at the end the following
new item:
‘‘Sec. 45Y. Clean electricity production credit.’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall apply to facilities placed in service after December 31, 2024.
SEC. 13702. CLEAN ELECTRICITY INVESTMENT CREDIT.
(a) IN GENERAL.—Subpart E of part IV of subchapter A of
chapter 1, as amended by section 107(a) of the CHIPS Act of
2022, is amended by inserting after section 48D the following new
section:
‘‘SEC. 48E. CLEAN ELECTRICITY INVESTMENT CREDIT.
‘‘(a) INVESTMENT CREDIT FOR QUALIFIED PROPERTY.—
‘‘(1) IN GENERAL.—For purposes of section 46, the clean
electricity investment credit for any taxable year is an amount
equal to the applicable percentage of the qualified investment
for such taxable year with respect to—
‘‘(A) any qualified facility, and
‘‘(B) any energy storage technology.
‘‘(2) APPLICABLE PERCENTAGE.—
‘‘(A) QUALIFIED FACILITIES.—Subject to paragraph (3)—
‘‘(i) BASE RATE.—In the case of any qualified
facility which is not described in subclause (I) or (II)
of clause (ii) and does not satisfy the requirements
described in subclause (III) of such clause, the
applicable percentage shall be 6 percent.
‘‘(ii) ALTERNATIVE RATE.—In the case of any quali-
fied facility—
‘‘(I) with a maximum net output of less than
1 megawatt (as measured in alternating current),
‘‘(II) the construction of which begins prior
to the date that is 60 days after the Secretary
publishes guidance with respect to the require-
ments of paragraphs (3) and (4) of subsection (d),
or
‘‘(III) which—
‘‘(aa) satisfies the requirements of sub-
section (d)(3), and
‘‘(bb) with respect to the construction of
such facility, satisfies the requirements of sub-
section (d)(4),
the applicable percentage shall be 30 percent.
‘‘(B) ENERGY STORAGE TECHNOLOGY.—Subject to para-
graph (3)—
H. R. 5376—174
‘‘(i) BASE RATE.—In the case of any energy storage
technology which is not described in subclause (I) or
(II) of clause (ii) and does not satisfy the requirements
described in subclause (III) of such clause, the
applicable percentage shall be 6 percent.
‘‘(ii) ALTERNATIVE RATE.—In the case of any energy
storage technology—
‘‘(I) with a capacity of less than 1 megawatt,
‘‘(II) the construction of which begins prior
to the date that is 60 days after the Secretary
publishes guidance with respect to the require-
ments of paragraphs (3) and (4) of subsection (d),
or
‘‘(III) which—
‘‘(aa) satisfies the requirements of sub-
section (d)(3), and
‘‘(bb) with respect to the construction of
such property, satisfies the requirements of
subsection (d)(4),
the applicable percentage shall be 30 percent.
‘‘(3) INCREASE IN CREDIT RATE IN CERTAIN CASES.—
‘‘(A) ENERGY COMMUNITIES.—
‘‘(i) IN GENERAL.—In the case of any qualified
investment with respect to a qualified facility or with
respect to energy storage technology which is placed
in service within an energy community (as defined
in section 45(b)(11)(B)), for purposes of applying para-
graph (2) with respect to such property or investment,
the applicable percentage shall be increased by the
applicable credit rate increase.
‘‘(ii) APPLICABLE CREDIT RATE INCREASE.—For pur-
poses of clause (i), the applicable credit rate increase
shall be an amount equal to—
‘‘(I) in the case of any qualified investment
with respect to a qualified facility described in
paragraph (2)(A)(i) or with respect to energy stor-
age technology described in paragraph (2)(B)(i),
2 percentage points, and
‘‘(II) in the case of any qualified investment
with respect to a qualified facility described in
paragraph (2)(A)(ii) or with respect to energy stor-
age technology described in paragraph (2)(B)(ii),
10 percentage points.
‘‘(B) DOMESTIC CONTENT.—Rules similar to the rules
of section 48(a)(12) shall apply.
‘‘(b) QUALIFIED INVESTMENT WITH RESPECT TO A QUALIFIED
FACILITY.—
‘‘(1) IN GENERAL.—For purposes of subsection (a), the quali-
fied investment with respect to any qualified facility for any
taxable year is the sum of—
‘‘(A) the basis of any qualified property placed in service
by the taxpayer during such taxable year which is part
of a qualified facility, plus
‘‘(B) the amount of any expenditures which are—
‘‘(i) paid or incurred by the taxpayer for qualified
interconnection property—
H. R. 5376—175
‘‘(I) in connection with a qualified facility
which has a maximum net output of not greater
than 5 megawatts (as measured in alternating cur-
rent), and
‘‘(II) placed in service during the taxable year
of the taxpayer, and
‘‘(ii) properly chargeable to capital account of the
taxpayer.
‘‘(2) QUALIFIED PROPERTY.—For purposes of this section,
the term ‘qualified property’ means property—
‘‘(A) which is—
‘‘(i) tangible personal property, or
‘‘(ii) other tangible property (not including a
building or its structural components), but only if such
property is used as an integral part of the qualified
facility,
‘‘(B) with respect to which depreciation (or amortization
in lieu of depreciation) is allowable, and
‘‘(C)(i) the construction, reconstruction, or erection of
which is completed by the taxpayer, or
‘‘(ii) which is acquired by the taxpayer if the original
use of such property commences with the taxpayer.
‘‘(3) QUALIFIED FACILITY.—
‘‘(A) IN GENERAL.—For purposes of this section, the
term ‘qualified facility’ means a facility—
‘‘(i) which is used for the generation of electricity,
‘‘(ii) which is placed in service after December 31,
2024, and
‘‘(iii) for which the anticipated greenhouse gas
emissions rate (as determined under subparagraph
(B)(ii)) is not greater than zero.
‘‘(B) ADDITIONAL RULES.—
‘‘(i) EXPANSION OF FACILITY; INCREMENTAL PRODUC-
TION.—Rules similar to the rules of section 45Y(b)(1)(C)
shall apply for purposes of this paragraph.
‘‘(ii) GREENHOUSE GAS EMISSIONS RATE.—Rules
similar to the rules of section 45Y(b)(2) shall apply
for purposes of this paragraph.
‘‘(C) EXCLUSION.—The term ‘qualified facility’ shall not
include any facility for which—
‘‘(i) a renewable electricity production credit deter-
mined under section 45,
‘‘(ii) an advanced nuclear power facility production
credit determined under section 45J,
‘‘(iii) a carbon oxide sequestration credit deter-
mined under section 45Q,
‘‘(iv) a zero-emission nuclear power production
credit determined under section 45U,
‘‘(v) a clean electricity production credit determined
under section 45Y,
‘‘(vi) an energy credit determined under section
48, or
‘‘(vii) a qualifying advanced coal project credit
under section 48A,
is allowed under section 38 for the taxable year or any
prior taxable year.
H. R. 5376—176
‘‘(4) QUALIFIED INTERCONNECTION PROPERTY.—For purposes
of this paragraph, the term ‘qualified interconnection property’
has the meaning given such term in section 48(a)(8)(B).
‘‘(5) COORDINATION WITH REHABILITATION CREDIT.—The
qualified investment with respect to any qualified facility for
any taxable year shall not include that portion of the basis
of any property which is attributable to qualified rehabilitation
expenditures (as defined in section 47(c)(2)).
‘‘(6) DEFINITIONS.—For purposes of this subsection, the
terms ‘CO2e per KWh’ and ‘greenhouse gas emissions rate’
have the same meaning given such terms under section 45Y.
‘‘(c) QUALIFIED INVESTMENT WITH RESPECT TO ENERGY STORAGE
TECHNOLOGY.—
‘‘(1) QUALIFIED INVESTMENT.—For purposes of subsection
(a), the qualified investment with respect to energy storage
technology for any taxable year is the basis of any energy
storage technology placed in service by the taxpayer during
such taxable year.
‘‘(2) ENERGY STORAGE TECHNOLOGY.—For purposes of this
section, the term ‘energy storage technology’ has the meaning
given such term in section 48(c)(6) (except that subparagraph
(D) of such section shall not apply).
‘‘(d) SPECIAL RULES.—
‘‘(1) CERTAIN PROGRESS EXPENDITURE RULES MADE
APPLICABLE.—Rules similar to the rules of subsections (c)(4)
and (d) of section 46 (as in effect on the day before the date
of the enactment of the Revenue Reconciliation Act of 1990)
shall apply for purposes of subsection (a).
‘‘(2) SPECIAL RULE FOR PROPERTY FINANCED BY SUBSIDIZED
ENERGY FINANCING OR PRIVATE ACTIVITY BONDS.—Rules similar
to the rules of section 45(b)(3) shall apply.
‘‘(3) PREVAILING WAGE REQUIREMENTS.—Rules similar to
the rules of section 48(a)(10) shall apply.
‘‘(4) APPRENTICESHIP REQUIREMENTS.—Rules similar to the
rules of section 45(b)(8) shall apply.
‘‘(5) DOMESTIC CONTENT REQUIREMENT FOR ELECTIVE PAY-
MENT.—In the case of a taxpayer making an election under
section 6417 with respect to a credit under this section, rules
similar to the rules of section 45Y(g)(12) shall apply.
‘‘(e) CREDIT PHASE-OUT.—
‘‘(1) IN GENERAL.—The amount of the clean electricity
investment credit under subsection (a) for any qualified invest-
ment with respect to any qualified facility or energy storage
technology the construction of which begins during a calendar
year described in paragraph (2) shall be equal to the product
of—
‘‘(A) the amount of the credit determined under sub-
section (a) without regard to this subsection, multiplied
by
‘‘(B) the phase-out percentage under paragraph (2).
‘‘(2) PHASE-OUT PERCENTAGE.—The phase-out percentage
under this paragraph is equal to—
‘‘(A) for any qualified investment with respect to any
qualified facility or energy storage technology the construc-
tion of which begins during the first calendar year following
the applicable year, 100 percent,
H. R. 5376—177
‘‘(B) for any qualified investment with respect to any
qualified facility or energy storage technology the construc-
tion of which begins during the second calendar year fol-
lowing the applicable year, 75 percent,
‘‘(C) for any qualified investment with respect to any
qualified facility or energy storage technology the construc-
tion of which begins during the third calendar year fol-
lowing the applicable year, 50 percent, and
‘‘(D) for any qualified investment with respect to any
qualified facility or energy storage technology the construc-
tion of which begins during any calendar year subsequent
to the calendar year described in subparagraph (C), 0 per-
cent.
‘‘(3) APPLICABLE YEAR.—For purposes of this subsection,
the term ‘applicable year’ has the same meaning given such
term in section 45Y(d)(3).
‘‘(f) GREENHOUSE GAS.—In this section, the term ‘greenhouse
gas’ has the same meaning given such term under section 45Y(e)(2).
‘‘(g) RECAPTURE OF CREDIT.—For purposes of section 50, if
the Secretary determines that the greenhouse gas emissions rate
for a qualified facility is greater than 10 grams of CO2e per KWh,
any property for which a credit was allowed under this section
with respect to such facility shall cease to be investment credit
property in the taxable year in which the determination is made.
‘‘(h) SPECIAL RULES FOR CERTAIN FACILITIES PLACED IN SERVICE
IN CONNECTION WITH LOW-INCOME COMMUNITIES.—
‘‘(1) IN GENERAL.—In the case of any applicable facility
with respect to which the Secretary makes an allocation of
environmental justice capacity limitation under paragraph (4)—
‘‘(A) the applicable percentage otherwise determined
under subsection (a)(2) with respect to any eligible property
which is part of such facility shall be increased by—
‘‘(i) in the case of a facility described in subclause
(I) of paragraph (2)(A)(iii) and not described in sub-
clause (II) of such paragraph, 10 percentage points,
and
‘‘(ii) in the case of a facility described in subclause
(II) of paragraph (2)(A)(iii), 20 percentage points, and
‘‘(B) the increase in the credit determined under sub-
section (a) by reason of this subsection for any taxable
year with respect to all property which is part of such
facility shall not exceed the amount which bears the same
ratio to the amount of such increase (determined without
regard to this subparagraph) as—
‘‘(i) the environmental justice capacity limitation
allocated to such facility, bears to
‘‘(ii) the total megawatt nameplate capacity of such
facility, as measured in direct current.
‘‘(2) APPLICABLE FACILITY.—For purposes of this sub-
section—
‘‘(A) IN GENERAL.—The term ‘applicable facility’ means
any qualified facility—
‘‘(i) which is not described in section 45Y(b)(2)(B),
‘‘(ii) which has a maximum net output of less than
5 megawatts (as measured in alternating current), and
‘‘(iii) which—
H. R. 5376—178
‘‘(I) is located in a low-income community (as
defined in section 45D(e)) or on Indian land (as
defined in section 2601(2) of the Energy Policy
Act of 1992 (25 U.S.C. 3501(2))), or
‘‘(II) is part of a qualified low-income residen-
tial building project or a qualified low-income eco-
nomic benefit project.
‘‘(B) QUALIFIED LOW-INCOME RESIDENTIAL BUILDING
PROJECT.—A facility shall be treated as part of a qualified
low-income residential building project if—
‘‘(i) such facility is installed on a residential rental
building which participates in a covered housing pro-
gram (as defined in section 41411(a) of the Violence
Against Women Act of 1994 (34 U.S.C. 12491(a)(3)),
a housing assistance program administered by the
Department of Agriculture under title V of the Housing
Act of 1949, a housing program administered by a
tribally designated housing entity (as defined in section
4(22) of the Native American Housing Assistance and
Self-Determination Act of 1996 (25 U.S.C. 4103(22)))
or such other affordable housing programs as the Sec-
retary may provide, and
‘‘(ii) the financial benefits of the electricity pro-
duced by such facility are allocated equitably among
the occupants of the dwelling units of such building.
‘‘(C) QUALIFIED LOW-INCOME ECONOMIC BENEFIT
PROJECT.—A facility shall be treated as part of a qualified
low-income economic benefit project if at least 50 percent
of the financial benefits of the electricity produced by such
facility are provided to households with income of—
‘‘(i) less than 200 percent of the poverty line (as
defined in section 36B(d)(3)(A)) applicable to a family
of the size involved, or
‘‘(ii) less than 80 percent of area median gross
income (as determined under section 142(d)(2)(B)).
‘‘(D) FINANCIAL BENEFIT.—For purposes of subpara-
graphs (B) and (C), electricity acquired at a below-market
rate shall not fail to be taken into account as a financial
benefit.
‘‘(3) ELIGIBLE PROPERTY.—For purposes of this subsection,
the term ‘eligible property’ means a qualified investment with
respect to any applicable facility.
‘‘(4) ALLOCATIONS.—
‘‘(A) IN GENERAL.—Not later than January 1, 2025,
the Secretary shall establish a program to allocate amounts
of environmental justice capacity limitation to applicable
facilities. In establishing such program and to carry out
the purposes of this subsection, the Secretary shall provide
procedures to allow for an efficient allocation process,
including, when determined appropriate, consideration of
multiple projects in a single application if such projects
will be placed in service by a single taxpayer.
‘‘(B) LIMITATION.—The amount of environmental justice
capacity limitation allocated by the Secretary under
subparagraph (A) during any calendar year shall not exceed
the annual capacity limitation with respect to such year.
H. R. 5376—179
‘‘(C) ANNUAL CAPACITY LIMITATION.—For purposes of
this paragraph, the term ‘annual capacity limitation’ means
1.8 gigawatts of direct current capacity for each calendar
year during the period beginning on January 1, 2025, and
ending on December 31 of the applicable year (as defined
in section 45Y(d)(3)), and zero thereafter.
‘‘(D) CARRYOVER OF UNUSED LIMITATION.—
‘‘(i) IN GENERAL.—If the annual capacity limitation
for any calendar year exceeds the aggregate amount
allocated for such year under this paragraph, such
limitation for the succeeding calendar year shall be
increased by the amount of such excess. No amount
may be carried under the preceding sentence to any
calendar year after the third calendar year following
the applicable year (as defined in section 45Y(d)(3)).
‘‘(ii) CARRYOVER FROM SECTION 48 FOR CALENDAR
YEAR 2025.—If the annual capacity limitation for cal-
endar year 2024 under section 48(e)(4)(D) exceeds the
aggregate amount allocated for such year under such
section, such excess amount may be carried over and
applied to the annual capacity limitation under this
subsection for calendar year 2025. The annual capacity
limitation for calendar year 2025 shall be increased
by the amount of such excess.
‘‘(E) PLACED IN SERVICE DEADLINE.—
‘‘(i) IN GENERAL.—Paragraph (1) shall not apply
with respect to any property which is placed in service
after the date that is 4 years after the date of the
allocation with respect to the facility of which such
property is a part.
‘‘(ii) APPLICATION OF CARRYOVER.—Any amount of
environmental justice capacity limitation which expires
under clause (i) during any calendar year shall be
taken into account as an excess described in subpara-
graph (D)(i) (or as an increase in such excess) for
such calendar year, subject to the limitation imposed
by the last sentence of such subparagraph.
‘‘(5) RECAPTURE.—The Secretary shall, by regulations or
other guidance, provide for recapturing the benefit of any
increase in the credit allowed under subsection (a) by reason
of this subsection with respect to any property which ceases
to be property eligible for such increase (but which does not
cease to be investment credit property within the meaning
of section 50(a)). The period and percentage of such recapture
shall be determined under rules similar to the rules of section
50(a). To the extent provided by the Secretary, such recapture
may not apply with respect to any property if, within 12 months
after the date the taxpayer becomes aware (or reasonably
should have become aware) of such property ceasing to be
property eligible for such increase, the eligibility of such prop-
erty for such increase is restored. The preceding sentence shall
not apply more than once with respect to any facility.
‘‘(i) GUIDANCE.—Not later than January 1, 2025, the Secretary
shall issue guidance regarding implementation of this section.’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 46, as amended by section 107(d) of the CHIPS
Act of 2022, is amended—
H. R. 5376—180
(A) in paragraph (5), by striking ‘‘and’’ at the end,
(B) in paragraph (6), by striking the period at the
end and inserting ‘‘, and’’, and
(C) by adding at the end the following:
‘‘(7) the clean electricity investment credit.’’.
(2) Section 49(a)(1)(C), as amended by section 107(d) of
the CHIPS Act of 2022, is amended—
(A) by striking ‘‘and’’ at the end of clause (v),
(B) by striking the period at the end of clause (vi)
and inserting a comma, and
(C) by adding at the end the following new clauses:
‘‘(vii) the basis of any qualified property which
is part of a qualified facility under section 48E, and
‘‘(viii) the basis of any energy storage technology
under section 48E.’’.
(3) Section 50(a)(2)(E), as amended by section 107(d) of
the CHIPS Act of 2022, is amended by striking ‘‘or 48D(b)(5)’’
and inserting ‘‘48D(b)(5), or 48E(e)’’.
(4) Section 50(c)(3) is amended by inserting ‘‘or clean elec-
tricity investment credit’’ after ‘‘In the case of any energy
credit’’.
(5) The table of sections for subpart E of part IV of sub-
chapter A of chapter 1, as amended by section 107(d) of the
CHIPS Act of 2022, is amended by inserting after the item
relating to section 48D the following new item:
‘‘48E. Clean electricity investment credit.’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall apply to property placed in service after December 31, 2024.
SEC. 13703. COST RECOVERY FOR QUALIFIED FACILITIES, QUALIFIED
PROPERTY, AND ENERGY STORAGE TECHNOLOGY.
(a) IN GENERAL.—Section 168(e)(3)(B) is amended—
(1) in clause (vi)(III), by striking ‘‘and’’ at the end,
(2) in clause (vii), by striking the period at the end and
inserting ‘‘, and’’, and
(3) by inserting after clause (vii) the following:
‘‘(viii) any qualified facility (as defined in section
45Y(b)(1)(A)), any qualified property (as defined in sub-
section (b)(2) of section 48E) which is a qualified invest-
ment (as defined in subsection (b)(1) of such section),
or any energy storage technology (as defined in sub-
section (c)(2) of such section).’’.
(b) EFFECTIVE DATE.—The amendments made by this section
shall apply to facilities and property placed in service after
December 31, 2024.
SEC. 13704. CLEAN FUEL PRODUCTION CREDIT.
(a) IN GENERAL.—Subpart D of part IV of subchapter A of
chapter 1, as amended by the preceding provisions of this Act,
is amended by adding at the end the following new section:
‘‘SEC. 45Z. CLEAN FUEL PRODUCTION CREDIT.
‘‘(a) AMOUNT OF CREDIT.—
‘‘(1) IN GENERAL.—For purposes of section 38, the clean
fuel production credit for any taxable year is an amount equal
to the product of—
H. R. 5376—181
‘‘(A) the applicable amount per gallon (or gallon equiva-
lent) with respect to any transportation fuel which is—
‘‘(i) produced by the taxpayer at a qualified facility,
and
‘‘(ii) sold by the taxpayer in a manner described
in paragraph (4) during the taxable year, and
‘‘(B) the emissions factor for such fuel (as determined
under subsection (b)).
‘‘(2) APPLICABLE AMOUNT.—
‘‘(A) BASE AMOUNT.—In the case of any transportation
fuel produced at a qualified facility which does not satisfy
the requirements described in subparagraph (B), the
applicable amount shall be 20 cents.
‘‘(B) ALTERNATIVE AMOUNT.—In the case of any
transportation fuel produced at a qualified facility which
satisfies the requirements under paragraphs (6) and (7)
of subsection (f), the applicable amount shall be $1.00.
‘‘(3) SPECIAL RATE FOR SUSTAINABLE AVIATION FUEL.—
‘‘(A) IN GENERAL.—In the case of a transportation fuel
which is sustainable aviation fuel, paragraph (2) shall be
applied—
‘‘(i) in the case of fuel produced at a qualified
facility described in paragraph (2)(A), by substituting
‘35 cents’ for ‘20 cents’, and
‘‘(ii) in the case of fuel produced at a qualified
facility described in paragraph (2)(B), by substituting
‘$1.75’ for ‘$1.00’.
‘‘(B) SUSTAINABLE AVIATION FUEL.—For purposes of this
subparagraph (A), the term ‘sustainable aviation fuel’
means liquid fuel, the portion of which is not kerosene,
which is sold for use in an aircraft and which—
‘‘(i) meets the requirements of—
‘‘(I) ASTM International Standard D7566, or
‘‘(II) the Fischer Tropsch provisions of ASTM
International Standard D1655, Annex A1, and
‘‘(ii) is not derived from palm fatty acid distillates
or petroleum.
‘‘(4) SALE.—For purposes of paragraph (1), the transpor-
tation fuel is sold in a manner described in this paragraph
if such fuel is sold by the taxpayer to an unrelated person—
‘‘(A) for use by such person in the production of a
fuel mixture,
‘‘(B) for use by such person in a trade or business,
or
‘‘(C) who sells such fuel at retail to another person
and places such fuel in the fuel tank of such other person.
‘‘(5) ROUNDING.—If any amount determined under para-
graph (1) is not a multiple of 1 cent, such amount shall be
rounded to the nearest cent.
‘‘(b) EMISSIONS FACTORS.—
‘‘(1) EMISSIONS FACTOR.—
‘‘(A) CALCULATION.—
‘‘(i) IN GENERAL.—The emissions factor of a
transportation fuel shall be an amount equal to the
quotient of—
‘‘(I) an amount equal to—
H. R. 5376—182
‘‘(aa) 50 kilograms of CO2e per mmBTU,
minus
‘‘(bb) the emissions rate for such fuel,
divided by
‘‘(II) 50 kilograms of CO2e per mmBTU.
‘‘(B) ESTABLISHMENT OF EMISSIONS RATE.—
‘‘(i) IN GENERAL.—Subject to clauses (ii) and (iii),
the Secretary shall annually publish a table which
sets forth the emissions rate for similar types and
categories of transportation fuels based on the amount
of lifecycle greenhouse gas emissions (as described in
section 211(o)(1)(H) of the Clean Air Act (42 U.S.C.
7545(o)(1)(H)), as in effect on the date of the enactment
of this section) for such fuels, expressed as kilograms
of CO2e per mmBTU, which a taxpayer shall use for
purposes of this section.
‘‘(ii) NON-AVIATION FUEL.—In the case of any
transportation fuel which is not a sustainable aviation
fuel, the lifecycle greenhouse gas emissions of such
fuel shall be based on the most recent determinations
under the Greenhouse gases, Regulated Emissions, and
Energy use in Transportation model developed by
Argonne National Laboratory, or a successor model
(as determined by the Secretary).
‘‘(iii) AVIATION FUEL.—In the case of any transpor-
tation fuel which is a sustainable aviation fuel, the
lifecycle greenhouse gas emissions of such fuel shall
be determined in accordance with—
‘‘(I) the most recent Carbon Offsetting and
Reduction Scheme for International Aviation which
has been adopted by the International Civil Avia-
tion Organization with the agreement of the
United States, or
‘‘(II) any similar methodology which satisfies
the criteria under section 211(o)(1)(H) of the Clean
Air Act (42 U.S.C. 7545(o)(1)(H)), as in effect on
the date of enactment of this section.
‘‘(C) ROUNDING OF EMISSIONS RATE.—
‘‘(i) IN GENERAL.—Subject to clause (ii), the Sec-
retary may round the emissions rates under subpara-
graph (B) to the nearest multiple of 5 kilograms of
CO2e per mmBTU.
‘‘(ii) EXCEPTION.—In the case of an emissions rate
that is between 2.5 kilograms of CO2e per mmBTU
and -2.5 kilograms of CO2e per mmBTU, the Secretary
may round such rate to zero.
‘‘(D) PROVISIONAL EMISSIONS RATE.—In the case of any
transportation fuel for which an emissions rate has not
been established under subparagraph (B), a taxpayer pro-
ducing such fuel may file a petition with the Secretary
for determination of the emissions rate with respect to
such fuel.
‘‘(2) ROUNDING.—If any amount determined under para-
graph (1)(A) is not a multiple of 0.1, such amount shall be
rounded to the nearest multiple of 0.1.
‘‘(c) INFLATION ADJUSTMENT.—
H. R. 5376—183
‘‘(1) IN GENERAL.—In the case of calendar years beginning
after 2024, the 20 cent amount in subsection (a)(2)(A), the
$1.00 amount in subsection (a)(2)(B), the 35 cent amount in
subsection (a)(3)(A)(i), and the $1.75 amount in subsection
(a)(3)(A)(ii) shall each be adjusted by multiplying such amount
by the inflation adjustment factor for the calendar year in
which the sale of the transportation fuel occurs. If any amount
as increased under the preceding sentence is not a multiple
of 1 cent, such amount shall be rounded to the nearest multiple
of 1 cent.
‘‘(2) INFLATION ADJUSTMENT FACTOR.—For purposes of para-
graph (1), the inflation adjustment factor shall be the inflation
adjustment factor determined and published by the Secretary
pursuant to section 45Y(c), determined by substituting ‘calendar
year 2022’ for ‘calendar year 1992’ in paragraph (3) thereof.
‘‘(d) DEFINITIONS.—In this section:
‘‘(1) mmBTU.—The term ‘mmBTU’ means 1,000,000 British
thermal units.
‘‘(2) CO2e.—The term ‘CO2e’ means, with respect to any
greenhouse gas, the equivalent carbon dioxide (as determined
based on relative global warming potential).
‘‘(3) GREENHOUSE GAS.—The term ‘greenhouse gas’ has the
same meaning given that term under section 211(o)(1)(G) of
the Clean Air Act (42 U.S.C. 7545(o)(1)(G)), as in effect on
the date of the enactment of this section.
‘‘(4) QUALIFIED FACILITY.—The term ‘qualified facility’—
‘‘(A) means a facility used for the production of
transportation fuels, and
‘‘(B) does not include any facility for which one of
the following credits is allowed under section 38 for the
taxable year:
‘‘(i) The credit for production of clean hydrogen
under section 45V.
‘‘(ii) The credit determined under section 46 to
the extent that such credit is attributable to the energy
credit determined under section 48 with respect to
any specified clean hydrogen production facility for
which an election is made under subsection (a)(15)
of such section.
‘‘(iii) The credit for carbon oxide sequestration
under section 45Q.
‘‘(5) TRANSPORTATION FUEL.—
‘‘(A) IN GENERAL.—The term ‘transportation fuel’
means a fuel which—
‘‘(i) is suitable for use as a fuel in a highway
vehicle or aircraft,
‘‘(ii) has an emissions rate which is not greater
than 50 kilograms of CO2e per mmBTU, and
‘‘(iii) is not derived from coprocessing an applicable
material (or materials derived from an applicable mate-
rial) with a feedstock which is not biomass.
‘‘(B) DEFINITIONS.—In this paragraph—
‘‘(i) APPLICABLE MATERIAL.—The term ‘applicable
material’ means—
‘‘(I) monoglycerides, diglycerides, and
triglycerides,
‘‘(II) free fatty acids, and
H. R. 5376—184
‘‘(III) fatty acid esters.
‘‘(ii) BIOMASS.—The term ‘biomass’ has the same
meaning given such term in section 45K(c)(3).
‘‘(e) GUIDANCE.—Not later than January 1, 2025, the Secretary
shall issue guidance regarding implementation of this section,
including calculation of emissions factors for transportation fuel,
the table described in subsection (b)(1)(B)(i), and the determination
of clean fuel production credits under this section.
‘‘(f) SPECIAL RULES.—
‘‘(1) ONLY REGISTERED PRODUCTION IN THE UNITED STATES
TAKEN INTO ACCOUNT.—
‘‘(A) IN GENERAL.—No clean fuel production credit shall
be determined under subsection (a) with respect to any
transportation fuel unless—
‘‘(i) the taxpayer—
‘‘(I) is registered as a producer of clean fuel
under section 4101 at the time of production, and
‘‘(II) in the case of any transportation fuel
which is a sustainable aviation fuel, provides—
‘‘(aa) certification (in such form and
manner as the Secretary shall prescribe) from
an unrelated party demonstrating compliance
with—
‘‘(AA) any general requirements,
supply chain traceability requirements,
and information transmission require-
ments established under the Carbon Off-
setting and Reduction Scheme for Inter-
national Aviation described in subclause
(I) of subsection (b)(1)(B)(iii), or
‘‘(BB) in the case of any methodology
described in subclause (II) of such sub-
section, requirements similar to the
requirements described in subitem (AA),
and
‘‘(bb) such other information with respect
to such fuel as the Secretary may require for
purposes of carrying out this section, and
‘‘(ii) such fuel is produced in the United States.
‘‘(B) UNITED STATES.—For purposes of this paragraph,
the term ‘United States’ includes any possession of the
United States.
‘‘(2) PRODUCTION ATTRIBUTABLE TO THE TAXPAYER.—In the
case of a facility in which more than 1 person has an ownership
interest, except to the extent provided in regulations prescribed
by the Secretary, production from the facility shall be allocated
among such persons in proportion to their respective ownership
interests in the gross sales from such facility.
‘‘(3) RELATED PERSONS.—Persons shall be treated as related
to each other if such persons would be treated as a single
employer under the regulations prescribed under section 52(b).
In the case of a corporation which is a member of an affiliated
group of corporations filing a consolidated return, such corpora-
tion shall be treated as selling fuel to an unrelated person
if such fuel is sold to such a person by another member of
such group.
H. R. 5376—185
‘‘(4) PASS-THRU IN THE CASE OF ESTATES AND TRUSTS.—
Under regulations prescribed by the Secretary, rules similar
to the rules of subsection (d) of section 52 shall apply.
‘‘(5) ALLOCATION OF CREDIT TO PATRONS OF AGRICULTURAL
COOPERATIVE.—Rules similar to the rules of section 45Y(g)(6)
shall apply.
‘‘(6) PREVAILING WAGE REQUIREMENTS.—
‘‘(A) IN GENERAL.—Subject to subparagraph (B), rules
similar to the rules of section 45(b)(7) shall apply.
‘‘(B) SPECIAL RULE FOR FACILITIES PLACED IN SERVICE
BEFORE JANUARY 1, 2025.—For purposes of subparagraph
(A), in the case of any qualified facility placed in service
before January 1, 2025—
‘‘(i) clause (i) of section 45(b)(7)(A) shall not apply,
and
‘‘(ii) clause (ii) of such section shall be applied
by substituting ‘with respect to any taxable year begin-
ning after December 31, 2024, for which the credit
is allowed under this section’ for ‘with respect to any
taxable year, for any portion of such taxable year which
is within the period described in subsection
(a)(2)(A)(ii)’.
‘‘(7) APPRENTICESHIP REQUIREMENTS.—Rules similar to the
rules of section 45(b)(8) shall apply.
‘‘(g) TERMINATION.—This section shall not apply to transpor-
tation fuel sold after December 31, 2027.’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 25C(d)(3), as amended by the preceding provi-
sions of this Act, is amended—
(A) in subparagraph (A), by striking ‘‘and’’ at the end,
(B) in subparagraph (B), by striking the period at
the end and inserting ‘‘, and’’, and
(C) by adding at the end the following new subpara-
graph:
‘‘(C) transportation fuel (as defined in section
45Z(d)(5)).’’.
(2) Section 30C(c)(1)(B), as amended by the preceding provi-
sions of this Act, is amended by adding at the end the following
new clause:
‘‘(iv) Any transportation fuel (as defined in section
45Z(d)(5)).’’.
(3) Section 38(b), as amended by the preceding provisions
of this Act, is amended—
(A) in paragraph (38), by striking ‘‘plus’’ at the end,
(B) in paragraph (39), by striking the period at the
end and inserting ‘‘, plus’’, and
(C) by adding at the end the following new paragraph:
‘‘(40) the clean fuel production credit determined under
section 45Z(a).’’.
(4) The table of sections for subpart D of part IV of sub-
chapter A of chapter 1, as amended by the preceding provisions
of this Act, is amended by adding at the end the following
new item:
‘‘Sec. 45Z. Clean fuel production credit.’’.
H. R. 5376—186
(5) Section 4101(a)(1), as amended by the preceding provi-
sions of this Act, is amended by inserting ‘‘every person pro-
ducing a fuel eligible for the clean fuel production credit (pursu-
ant to section 45Z),’’ after ‘‘section 6426(k)(3)),’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall apply to transportation fuel produced after December 31,
2024.
PART 8—CREDIT MONETIZATION AND
APPROPRIATIONS
SEC. 13801. ELECTIVE PAYMENT FOR ENERGY PROPERTY AND ELEC-
TRICITY PRODUCED FROM CERTAIN RENEWABLE
RESOURCES, ETC.
(a) IN GENERAL.—Subchapter B of chapter 65 is amended by
inserting after section 6416 the following new section:
‘‘SEC. 6417. ELECTIVE PAYMENT OF APPLICABLE CREDITS.
‘‘(a) IN GENERAL.—In the case of an applicable entity making
an election (at such time and in such manner as the Secretary
may provide) under this section with respect to any applicable
credit determined with respect to such entity, such entity shall
be treated as making a payment against the tax imposed by subtitle
A (for the taxable year with respect to which such credit was
determined) equal to the amount of such credit.
‘‘(b) APPLICABLE CREDIT.—The term ‘applicable credit’ means
each of the following:
‘‘(1) So much of the credit for alternative fuel vehicle
refueling property allowed under section 30C which, pursuant
to subsection (d)(1) of such section, is treated as a credit listed
in section 38(b).
‘‘(2) So much of the renewable electricity production credit
determined under section 45(a) as is attributable to qualified
facilities which are originally placed in service after December
31, 2022.
‘‘(3) So much of the credit for carbon oxide sequestration
determined under section 45Q(a) as is attributable to carbon
capture equipment which is originally placed in service after
December 31, 2022.
‘‘(4) The zero-emission nuclear power production credit
determined under section 45U(a).
‘‘(5) So much of the credit for production of clean hydrogen
determined under section 45V(a) as is attributable to qualified
clean hydrogen production facilities which are originally placed
in service after December 31, 2012.
‘‘(6) In the case of a tax-exempt entity described in clause
(i), (ii), or (iv) of section 168(h)(2)(A), the credit for qualified
commercial vehicles determined under section 45W by reason
of subsection (d)(3) thereof.
‘‘(7) The credit for advanced manufacturing production
under section 45X(a).
‘‘(8) The clean electricity production credit determined
under section 45Y(a).
‘‘(9) The clean fuel production credit determined under
section 45Z(a).
‘‘(10) The energy credit determined under section 48.
H. R. 5376—187
‘‘(11) The qualifying advanced energy project credit deter-
mined under section 48C.
‘‘(12) The clean electricity investment credit determined
under section 48E.
‘‘(c) APPLICATION TO PARTNERSHIPS AND S CORPORATIONS.—
‘‘(1) IN GENERAL.—In the case of any applicable credit deter-
mined with respect to any facility or property held directly
by a partnership or S corporation, any election under subsection
(a) shall be made by such partnership or S corporation. If
such partnership or S corporation makes an election under
such subsection (in such manner as the Secretary may provide)
with respect to such credit—
‘‘(A) the Secretary shall make a payment to such part-
nership or S corporation equal to the amount of such credit,
‘‘(B) subsection (e) shall be applied with respect to
such credit before determining any partner’s distributive
share, or shareholder’s pro rata share, of such credit,
‘‘(C) any amount with respect to which the election
in subsection (a) is made shall be treated as tax exempt
income for purposes of sections 705 and 1366, and
‘‘(D) a partner’s distributive share of such tax exempt
income shall be based on such partner’s distributive share
of the otherwise applicable credit for each taxable year.
‘‘(2) COORDINATION WITH APPLICATION AT PARTNER OR
SHAREHOLDER LEVEL.—In the case of any facility or property
held directly by a partnership or S corporation, no election
by any partner or shareholder shall be allowed under subsection
(a) with respect to any applicable credit determined with respect
to such facility or property.
‘‘(3) TREATMENT OF PAYMENTS TO PARTNERSHIPS AND S COR-
PORATIONS.—For purposes of section 1324 of title 31, United
States Code, the payments under paragraph (1)(A) shall be
treated in the same manner as a refund due from a credit
provision referred to in subsection (b)(2) of such section.
‘‘(d) SPECIAL RULES.—For purposes of this section—
‘‘(1) APPLICABLE ENTITY.—
‘‘(A) IN GENERAL.—The term ‘applicable entity’ means—
‘‘(i) any organization exempt from the tax imposed
by subtitle A,
‘‘(ii) any State or political subdivision thereof,
‘‘(iii) the Tennessee Valley Authority,
‘‘(iv) an Indian tribal government (as defined in
section 30D(g)(9)),
‘‘(v) any Alaska Native Corporation (as defined
in section 3 of the Alaska Native Claims Settlement
Act (43 U.S.C. 1602(m)), or
‘‘(vi) any corporation operating on a cooperative
basis which is engaged in furnishing electric energy
to persons in rural areas.
‘‘(B) ELECTION WITH RESPECT TO CREDIT FOR PRODUC-
TION OF CLEAN HYDROGEN.—If a taxpayer other than an
entity described in subparagraph (A) makes an election
under this subparagraph with respect to any taxable year
in which such taxpayer has placed in service a qualified
clean hydrogen production facility (as defined in section
45V(c)(3)), such taxpayer shall be treated as an applicable
entity for purposes of this section for such taxable year,
H. R. 5376—188
but only with respect to the credit described in subsection
(b)(5).
‘‘(C) ELECTION WITH RESPECT TO CREDIT FOR CARBON
OXIDE SEQUESTRATION.—If a taxpayer other than an entity
described in subparagraph (A) makes an election under
this subparagraph with respect to any taxable year in
which such taxpayer has, after December 31, 2022, placed
in service carbon capture equipment at a qualified facility
(as defined in section 45Q(d)), such taxpayer shall be
treated as an applicable entity for purposes of this section
for such taxable year, but only with respect to the credit
described in subsection (b)(3).
‘‘(D) ELECTION WITH RESPECT TO ADVANCED MANUFAC-
TURING PRODUCTION CREDIT.—
‘‘(i) IN GENERAL.—If a taxpayer other than an
entity described in subparagraph (A) makes an election
under this subparagraph with respect to any taxable
year in which such taxpayer has, after December 31,
2022, produced eligible components (as defined in sec-
tion 45X(c)(1)), such taxpayer shall be treated as an
applicable entity for purposes of this section for such
taxable year, but only with respect to the credit
described in subsection (b)(7).
‘‘(ii) LIMITATION.—
‘‘(I) IN GENERAL.—Except as provided in sub-
clause (II), if a taxpayer makes an election under
this subparagraph with respect to any taxable
year, such taxpayer shall be treated as having
made such election for each of the 4 succeeding
taxable years ending before January 1, 2033.
‘‘(II) EXCEPTION.—A taxpayer may elect to
revoke the application of the election made under
this subparagraph to any taxable year described
in subclause (I). Any such election, if made, shall
apply to the applicable year specified in such elec-
tion and each subsequent taxable year within the
period described in subclause (I). Any election
under this subclause may not be subsequently
revoked.
‘‘(iii) PROHIBITION ON TRANSFER.—For any taxable
year described in clause (ii)(I), no election may be
made by the taxpayer under section 6418(a) for such
taxable year with respect to eligible components for
purposes of the credit described in subsection (b)(7).
‘‘(E) OTHER RULES.—
‘‘(i) IN GENERAL.—An election made under subpara-
graph (B), (C), or (D) shall be made at such time
and in such manner as the Secretary may provide.
‘‘(ii) LIMITATION.—No election may be made under
subparagraph (B), (C), or (D) with respect to any tax-
able year beginning after December 31, 2032.
‘‘(2) APPLICATION.—In the case of any applicable entity
which makes the election described in subsection (a), any
applicable credit shall be determined—
‘‘(A) without regard to paragraphs (3) and (4)(A)(i)
of section 50(b), and
H. R. 5376—189
‘‘(B) by treating any property with respect to which
such credit is determined as used in a trade or business
of the applicable entity.
‘‘(3) ELECTIONS.—
‘‘(A) IN GENERAL.—
‘‘(i) DUE DATE.—Any election under subsection (a)
shall be made not later than—
‘‘(I) in the case of any government, or political
subdivision, described in paragraph (1) and for
which no return is required under section 6011
or 6033(a), such date as is determined appropriate
by the Secretary, or
‘‘(II) in any other case, the due date (including
extensions of time) for the return of tax for the
taxable year for which the election is made, but
in no event earlier than 180 days after the date
of the enactment of this section.
‘‘(ii) ADDITIONAL RULES.—Any election under sub-
section (a), once made, shall be irrevocable and shall
apply (except as otherwise provided in this paragraph)
with respect to any credit for the taxable year for
which the election is made.
‘‘(B) RENEWABLE ELECTRICITY PRODUCTION CREDIT.—
In the case of the credit described in subsection (b)(2),
any election under subsection (a) shall—
‘‘(i) apply separately with respect to each qualified
facility,
‘‘(ii) be made for the taxable year in which such
qualified facility is originally placed in service, and
‘‘(iii) shall apply to such taxable year and to any
subsequent taxable year which is within the period
described in subsection (a)(2)(A)(ii) of section 45 with
respect to such qualified facility.
‘‘(C) CREDIT FOR CARBON OXIDE SEQUESTRATION.—
‘‘(i) IN GENERAL.—In the case of the credit
described in subsection (b)(3), any election under sub-
section (a) shall—
‘‘(I) apply separately with respect to the carbon
capture equipment originally placed in service by
the applicable entity during a taxable year, and
‘‘(II)(aa) in the case of a taxpayer who makes
an election described in paragraph (1)(C), apply
to the taxable year in which such equipment is
placed in service and the 4 subsequent taxable
years with respect to such equipment which end
before January 1, 2033, and
‘‘(bb) in any other case, apply to such taxable
year and to any subsequent taxable year which
is within the period described in paragraph (3)(A)
or (4)(A) of section 45Q(a) with respect to such
equipment.
‘‘(ii) PROHIBITION ON TRANSFER.—For any taxable
year described in clause (i)(II)(aa) with respect to
carbon capture equipment, no election may be made
by the taxpayer under section 6418(a) for such taxable
year with respect to such equipment for purposes of
the credit described in subsection (b)(3).
H. R. 5376—190
‘‘(iii) REVOCATION OF ELECTION.—In the case of
a taxpayer who makes an election described in para-
graph (1)(C) with respect to carbon capture equipment,
such taxpayer may, at any time during the period
described in clause (i)(II)(aa), revoke the application
of such election with respect to such equipment for
any subsequent taxable years during such period. Any
such election, if made, shall apply to the applicable
year specified in such election and each subsequent
taxable year within the period described in clause
(i)(II)(aa). Any election under this subclause may not
be subsequently revoked.
‘‘(D) CREDIT FOR PRODUCTION OF CLEAN HYDROGEN.—
‘‘(i) IN GENERAL.—In the case of the credit
described in subsection (b)(5), any election under sub-
section (a) shall—
‘‘(I) apply separately with respect to each
qualified clean hydrogen production facility,
‘‘(II) be made for the taxable year in which
such facility is placed in service (or within the
1-year period subsequent to the date of enactment
of this section in the case of facilities placed in
service before December 31, 2022), and
‘‘(III)(aa) in the case of a taxpayer who makes
an election described in paragraph (1)(B), apply
to such taxable year and the 4 subsequent taxable
years with respect to such facility which end before
January 1, 2033, and
‘‘(bb) in any other case, apply to such taxable
year and all subsequent taxable years with respect
to such facility.
‘‘(ii) PROHIBITION ON TRANSFER.—For any taxable
year described in clause (i)(III)(aa) with respect to a
qualified clean hydrogen production facility, no election
may be made by the taxpayer under section 6418(a)
for such taxable year with respect to such facility for
purposes of the credit described in subsection (b)(5).
‘‘(iii) REVOCATION OF ELECTION.—In the case of
a taxpayer who makes an election described in para-
graph (1)(B) with respect to a qualified clean hydrogen
production facility, such taxpayer may, at any time
during the period described in clause (i)(III)(aa), revoke
the application of such election with respect to such
facility for any subsequent taxable years during such
period. Any such election, if made, shall apply to the
applicable year specified in such election and each
subsequent taxable year within the period described
in clause (i)(II)(aa). Any election under this subclause
may not be subsequently revoked.
‘‘(E) CLEAN ELECTRICITY PRODUCTION CREDIT.—In the
case of the credit described in subsection (b)(8), any election
under subsection (a) shall—
‘‘(i) apply separately with respect to each qualified
facility,
‘‘(ii) be made for the taxable year in which such
facility is placed in service, and
H. R. 5376—191
‘‘(iii) shall apply to such taxable year and to any
subsequent taxable year which is within the period
described in subsection (b)(1)(B) of section 45Y with
respect to such facility.
‘‘(4) TIMING.—The payment described in subsection (a) shall
be treated as made on—
‘‘(A) in the case of any government, or political subdivi-
sion, described in paragraph (1) and for which no return
is required under section 6011 or 6033(a), the later of
the date that a return would be due under section 6033(a)
if such government or subdivision were described in that
section or the date on which such government or subdivi-
sion submits a claim for credit or refund (at such time
and in such manner as the Secretary shall provide), and
‘‘(B) in any other case, the later of the due date (deter-
mined without regard to extensions) of the return of tax
for the taxable year or the date on which such return
is filed.
‘‘(5) ADDITIONAL INFORMATION.—As a condition of, and prior
to, any amount being treated as a payment which is made
by an applicable entity under subsection (a), the Secretary
may require such information or registration as the Secretary
deems necessary for purposes of preventing duplication, fraud,
improper payments, or excessive payments under this section.
‘‘(6) EXCESSIVE PAYMENT.—
‘‘(A) IN GENERAL.—In the case of any amount treated
as a payment which is made by the applicable entity under
subsection (a), or the amount of the payment made pursu-
ant to subsection (c), which the Secretary determines con-
stitutes an excessive payment, the tax imposed on such
entity by chapter 1 (regardless of whether such entity
would otherwise be subject to tax under such chapter)
for the taxable year in which such determination is made
shall be increased by an amount equal to the sum of—
‘‘(i) the amount of such excessive payment, plus
‘‘(ii) an amount equal to 20 percent of such exces-
sive payment.
‘‘(B) REASONABLE CAUSE.—Subparagraph (A)(ii) shall
not apply if the applicable entity demonstrates to the satis-
faction of the Secretary that the excessive payment resulted
from reasonable cause.
‘‘(C) EXCESSIVE PAYMENT DEFINED.—For purposes of
this paragraph, the term ‘excessive payment’ means, with
respect to a facility or property for which an election is
made under this section for any taxable year, an amount
equal to the excess of—
‘‘(i) the amount treated as a payment which is
made by the applicable entity under subsection (a),
or the amount of the payment made pursuant to sub-
section (c), with respect to such facility or property
for such taxable year, over
‘‘(ii) the amount of the credit which, without
application of this section, would be otherwise allow-
able (as determined pursuant to paragraph (2) and
without regard to section 38(c)) under this title with
respect to such facility or property for such taxable
year.
H. R. 5376—192
‘‘(e) DENIAL OF DOUBLE BENEFIT.—In the case of an applicable
entity making an election under this section with respect to an
applicable credit, such credit shall be reduced to zero and shall,
for any other purposes under this title, be deemed to have been
allowed to such entity for such taxable year.
‘‘(f) MIRROR CODE POSSESSIONS.—In the case of any possession
of the United States with a mirror code tax system (as defined
in section 24(k)), this section shall not be treated as part of the
income tax laws of the United States for purposes of determining
the income tax law of such possession unless such possession elects
to have this section be so treated.
‘‘(g) BASIS REDUCTION AND RECAPTURE.—Except as otherwise
provided in subsection (c)(2)(A), rules similar to the rules of section
50 shall apply for purposes of this section.
‘‘(h) REGULATIONS.—The Secretary shall issue such regulations
or other guidance as may be necessary to carry out the purposes
of this section, including guidance to ensure that the amount of
the payment or deemed payment made under this section is
commensurate with the amount of the credit that would be other-
wise allowable (determined without regard to section 38(c)).’’.
(b) TRANSFER OF CERTAIN CREDITS.—Subchapter B of chapter
65, as amended by subsection (a), is amended by inserting after
section 6417 the following new section:
‘‘SEC. 6418. TRANSFER OF CERTAIN CREDITS.
‘‘(a) IN GENERAL.—In the case of an eligible taxpayer which
elects to transfer all (or any portion specified in the election) of
an eligible credit determined with respect to such taxpayer for
any taxable year to a taxpayer (referred to in this section as
the ‘transferee taxpayer’) which is not related (within the meaning
of section 267(b) or 707(b)(1)) to the eligible taxpayer, the transferee
taxpayer specified in such election (and not the eligible taxpayer)
shall be treated as the taxpayer for purposes of this title with
respect to such credit (or such portion thereof).
‘‘(b) TREATMENT OF PAYMENTS MADE IN CONNECTION WITH
TRANSFER.—With respect to any amount paid by a transferee tax-
payer to an eligible taxpayer as consideration for a transfer
described in subsection (a), such consideration—
‘‘(1) shall be required to be paid in cash,
‘‘(2) shall not be includible in gross income of the eligible
taxpayer, and
‘‘(3) with respect to the transferee taxpayer, shall not be
deductible under this title.
‘‘(c) APPLICATION TO PARTNERSHIPS AND S CORPORATIONS.—
‘‘(1) IN GENERAL.—In the case of any eligible credit deter-
mined with respect to any facility or property held directly
by a partnership or S corporation, if such partnership or S
corporation makes an election under subsection (a) (in such
manner as the Secretary may provide) with respect to such
credit—
‘‘(A) any amount received as consideration for a
transfer described in such subsection shall be treated as
tax exempt income for purposes of sections 705 and 1366,
and
‘‘(B) a partner’s distributive share of such tax exempt
income shall be based on such partner’s distributive share
of the otherwise eligible credit for each taxable year.
H. R. 5376—193
‘‘(2) COORDINATION WITH APPLICATION AT PARTNER OR
SHAREHOLDER LEVEL.—In the case of any facility or property
held directly by a partnership or S corporation, no election
by any partner or shareholder shall be allowed under subsection
(a) with respect to any eligible credit determined with respect
to such facility or property.
‘‘(d) TAXABLE YEAR IN WHICH CREDIT TAKEN INTO ACCOUNT.—
In the case of any credit (or portion thereof) with respect to which
an election is made under subsection (a), such credit shall be
taken into account in the first taxable year of the transferee tax-
payer ending with, or after, the taxable year of the eligible taxpayer
with respect to which the credit was determined.
‘‘(e) LIMITATIONS ON ELECTION.—
‘‘(1) TIME FOR ELECTION.—An election under subsection
(a) to transfer any portion of an eligible credit shall be made
not later than the due date (including extensions of time)
for the return of tax for the taxable year for which the credit
is determined, but in no event earlier than 180 days after
the date of the enactment of this section. Any such election,
once made, shall be irrevocable.
‘‘(2) NO ADDITIONAL TRANSFERS.—No election may be made
under subsection (a) by a transferee taxpayer with respect
to any portion of an eligible credit which has been previously
transferred to such taxpayer pursuant to this section.
‘‘(f) DEFINITIONS.—For purposes of this section—
‘‘(1) ELIGIBLE CREDIT.—
‘‘(A) IN GENERAL.—The term ‘eligible credit’ means each
of the following:
‘‘(i) So much of the credit for alternative fuel
vehicle refueling property allowed under section 30C
which, pursuant to subsection (d)(1) of such section,
is treated as a credit listed in section 38(b).
‘‘(ii) The renewable electricity production credit
determined under section 45(a).
‘‘(iii) The credit for carbon oxide sequestration
determined under section 45Q(a).
‘‘(iv) The zero-emission nuclear power production
credit determined under section 45U(a).
‘‘(v) The clean hydrogen production credit deter-
mined under section 45V(a).
‘‘(vi) The advanced manufacturing production
credit determined under section 45X(a).
‘‘(vii) The clean electricity production credit deter-
mined under section 45Y(a).
‘‘(viii) The clean fuel production credit determined
under section 45Z(a).
‘‘(ix) The energy credit determined under section
48.
‘‘(x) The qualifying advanced energy project credit
determined under section 48C.
‘‘(xi) The clean electricity investment credit deter-
mined under section 48E.
‘‘(B) ELECTION FOR CERTAIN CREDITS.—In the case of
any eligible credit described in clause (ii), (iii), (v), or (vii)
of subparagraph (A), an election under subsection (a) shall
be made—
H. R. 5376—194
‘‘(i) separately with respect to each facility for
which such credit is determined, and
‘‘(ii) for each taxable year during the 10-year period
beginning on the date such facility was originally
placed in service (or, in the case of the credit described
in clause (iii), for each year during the 12-year period
beginning on the date the carbon capture equipment
was originally placed in service at such facility).
‘‘(C) EXCEPTION FOR BUSINESS CREDIT CARRYFORWARDS
OR CARRYBACKS.—The term ‘eligible credit’ shall not include
any business credit carryforward or business credit
carryback determined under section 39.
‘‘(2) ELIGIBLE TAXPAYER.—The term ‘eligible taxpayer’
means any taxpayer which is not described in section
6417(d)(1)(A).
‘‘(g) SPECIAL RULES.—For purposes of this section—
‘‘(1) ADDITIONAL INFORMATION.—As a condition of, and prior
to, any transfer of any portion of an eligible credit pursuant
to subsection (a), the Secretary may require such information
(including, in such form or manner as is determined appropriate
by the Secretary, such information returns) or registration as
the Secretary deems necessary for purposes of preventing
duplication, fraud, improper payments, or excessive payments
under this section.
‘‘(2) EXCESSIVE CREDIT TRANSFER.—
‘‘(A) IN GENERAL.—In the case of any portion of an
eligible credit which is transferred to a transferee taxpayer
pursuant to subsection (a) which the Secretary determines
constitutes an excessive credit transfer, the tax imposed
on the transferee taxpayer by chapter 1 (regardless of
whether such entity would otherwise be subject to tax
under such chapter) for the taxable year in which such
determination is made shall be increased by an amount
equal to the sum of—
‘‘(i) the amount of such excessive credit transfer,
plus
‘‘(ii) an amount equal to 20 percent of such exces-
sive credit transfer.
‘‘(B) REASONABLE CAUSE.—Subparagraph (A)(ii) shall
not apply if the transferee taxpayer demonstrates to the
satisfaction of the Secretary that the excessive credit
transfer resulted from reasonable cause.
‘‘(C) EXCESSIVE CREDIT TRANSFER DEFINED.—For pur-
poses of this paragraph, the term ‘excessive credit transfer’
means, with respect to a facility or property for which
an election is made under subsection (a) for any taxable
year, an amount equal to the excess of—
‘‘(i) the amount of the eligible credit claimed by
the transferee taxpayer with respect to such facility
or property for such taxable year, over
‘‘(ii) the amount of such credit which, without
application of this section, would be otherwise allow-
able under this title with respect to such facility or
property for such taxable year.
‘‘(3) BASIS REDUCTION; NOTIFICATION OF RECAPTURE.—In
the case of any election under subsection (a) with respect to
H. R. 5376—195
any portion of an eligible credit described in clauses (ix) through
(xi) of subsection (f)(1)(A)—
‘‘(A) subsection (c) of section 50 shall apply to the
applicable investment credit property (as defined in sub-
section (a)(5) of such section) as if such eligible credit
was allowed to the eligible taxpayer, and
‘‘(B) if, during any taxable year, the applicable invest-
ment credit property (as defined in subsection (a)(5) of
section 50) is disposed of, or otherwise ceases to be invest-
ment credit property with respect to the eligible taxpayer,
before the close of the recapture period (as described in
subsection (a)(1) of such section)—
‘‘(i) such eligible taxpayer shall provide notice of
such occurrence to the transferee taxpayer (in such
form and manner as the Secretary shall prescribe),
and
‘‘(ii) the transferee taxpayer shall provide notice
of the recapture amount (as defined in subsection (c)(2)
of such section), if any, to the eligible taxpayer (in
such form and manner as the Secretary shall pre-
scribe).
‘‘(4) PROHIBITION ON ELECTION OR TRANSFER WITH RESPECT
TO PROGRESS EXPENDITURES.—This section shall not apply with
respect to any amount of an eligible credit which is allowed
pursuant to rules similar to the rules of subsections (c)(4)
and (d) of section 46 (as in effect on the day before the date
of the enactment of the Revenue Reconciliation Act of 1990).
‘‘(h) REGULATIONS.—The Secretary shall issue such regulations
or other guidance as may be necessary to carry out the purposes
of this section, including regulations or other guidance providing
rules for determining a partner’s distributive share of the tax
exempt income described in subsection (c)(1).’’.
(c) REAL ESTATE INVESTMENT TRUSTS.—Section 50(d) is
amended by adding at the end the following: ‘‘In the case of a
real estate investment trust making an election under section 6418,
paragraphs (1)(B) and (2)(B) of the section 46(e) referred to in
paragraph (1) of this subsection shall not apply to any investment
credit property of such real estate investment trust to which such
election applies.’’.
(d) 3-YEAR CARRYBACK FOR APPLICABLE CREDITS.—Section 39(a)
is amended by adding at the end the following:
‘‘(4) 3-YEAR CARRYBACK FOR APPLICABLE CREDITS.—Notwith-
standing subsection (d), in the case of any applicable credit
(as defined in section 6417(b))—
‘‘(A) this section shall be applied separately from the
business credit (other than the applicable credit),
‘‘(B) paragraph (1) shall be applied by substituting
‘each of the 3 taxable years’ for ‘the taxable year’ in
subparagraph (A) thereof, and
‘‘(C) paragraph (2) shall be applied—
‘‘(i) by substituting ‘23 taxable years’ for ‘21 taxable
years’ in subparagraph (A) thereof, and
‘‘(ii) by substituting ‘22 taxable years’ for ‘20 tax-
able years’ in subparagraph (B) thereof.’’.
H. R. 5376—196
(e) CLERICAL AMENDMENT.—The table of sections for subchapter
B of chapter 65 is amended by inserting after the item relating
to section 6416 the following new items:
‘‘Sec. 6417. Elective payment of applicable credits.
‘‘Sec. 6418. Transfer of certain credits.’’.
(f) GROSS-UP OF DIRECT SPENDING.—Beginning in fiscal year
2023 and each fiscal year thereafter, the portion of any payment
made to a taxpayer pursuant to an election under section 6417
of the Internal Revenue Code of 1986, or any amount treated
as a payment which is made by the taxpayer under subsection
(a) of such section, that is direct spending shall be increased by
6.0445 percent.
(g) EFFECTIVE DATE.—The amendments made by this section
shall apply to taxable years beginning after December 31, 2022.
SEC. 13802. APPROPRIATIONS.
Immediately upon the enactment of this Act, in addition to
amounts otherwise available, there are appropriated for fiscal year
2022, out of any money in the Treasury not otherwise appropriated,
$500,000,000 to remain available until September 30, 2031, for
necessary expenses for the Internal Revenue Service to carry out
this subtitle (and the amendments made by this subtitle), which
shall supplement and not supplant any other appropriations that
may be available for this purpose.
PART 9—OTHER PROVISIONS
SEC. 13901. PERMANENT EXTENSION OF TAX RATE TO FUND BLACK
LUNG DISABILITY TRUST FUND.
(a) IN GENERAL.—Section 4121 is amended by striking sub-
section (e).
(b) EFFECTIVE DATE.—The amendment made by this section
shall apply to sales in calendar quarters beginning after the date
which is 1 day after the date of enactment of this Act.
SEC. 13902. INCREASE IN RESEARCH CREDIT AGAINST PAYROLL TAX
FOR SMALL BUSINESSES.
(a) IN GENERAL.—Clause (i) of section 41(h)(4)(B) is amended—
(1) by striking ‘‘AMOUNT.—The amount’’ and inserting
‘‘AMOUNT.—
‘‘(I) IN GENERAL.—The amount’’, and
(2) by adding at the end the following new subclause:
‘‘(II) INCREASE.—In the case of taxable years
beginning after December 31, 2022, the amount
in subclause (I) shall be increased by $250,000.’’.
(b) ALLOWANCE OF CREDIT.—
(1) IN GENERAL.—Paragraph (1) of section 3111(f) is
amended—
(A) by striking ‘‘for a taxable year, there shall be
allowed’’ and inserting ‘‘for a taxable year—
‘‘(A) there shall be allowed’’,
(B) by striking ‘‘equal to the’’ and inserting ‘‘equal
to so much of the’’,
(C) by striking the period at the end and inserting
‘‘as does not exceed the limitation of subclause (I) of section
41(h)(4)(B)(i) (applied without regard to subclause (II)
thereof), and’’, and
H. R. 5376—197
(D) by adding at the end the following new subpara-
graph:
‘‘(B) there shall be allowed as a credit against the
tax imposed by subsection (b) for the first calendar quarter
which begins after the date on which the taxpayer files
the return specified in section 41(h)(4)(A)(ii) an amount
equal to so much of the payroll tax credit portion deter-
mined under section 41(h)(2) as is not allowed as a credit
under subparagraph (A).’’.
(2) LIMITATION.—Paragraph (2) of section 3111(f) is
amended—
(A) by striking ‘‘paragraph (1)’’ and inserting ‘‘para-
graph (1)(A)’’, and
(B) by inserting ‘‘, and the credit allowed by paragraph
(1)(B) shall not exceed the tax imposed by subsection (b)
for any calendar quarter,’’ after ‘‘calendar quarter’’.
(3) CARRYOVER.—Paragraph (3) of section 3111(f) is
amended by striking ‘‘the credit’’ and inserting ‘‘any credit’’.
(4) DEDUCTION ALLOWED.—Paragraph (4) of section 3111(f)
is amended—
(A) by striking ‘‘credit’’ and inserting ‘‘credits’’, and
(B) by striking ‘‘subsection (a)’’ and inserting ‘‘sub-
section (a) or (b)’’.
(c) AGGREGATION RULES.—Clause (ii) of section 41(h)(5)(B) is
amended by striking ‘‘the $250,000 amount’’ and inserting ‘‘each
of the $250,000 amounts’’.
(d) EFFECTIVE DATE.—The amendments made by this section
shall apply to taxable years beginning after December 31, 2022.
SEC. 13903. REINSTATEMENT OF LIMITATION RULES FOR DEDUCTION
FOR STATE AND LOCAL, ETC., TAXES; EXTENSION OF
LIMITATION ON EXCESS BUSINESS LOSSES OF NONCOR-
PORATE TAXPAYERS.
(a) REINSTATEMENT OF LIMITATION RULES FOR DEDUCTION FOR
STATE AND LOCAL, ETC., TAXES.—
(1) IN GENERAL.—Section 164(b)(6), as amended by section
13904, is further amended—
(A) in the heading, by striking ‘‘2026’’ and inserting
‘‘2025’’, and
(B) by striking ‘‘2027’’ and inserting ‘‘2026’’.
(2) EFFECTIVE DATE.—The amendments made by this sub-
section shall apply to taxable years beginning after December
31, 2022.
(b) EXTENSION OF LIMITATION ON EXCESS BUSINESS LOSSES
OF NONCORPORATE TAXPAYERS.—
(1) IN GENERAL.—Section 461(l)(1) is amended by striking
‘‘January 1, 2027’’ each place it appears and inserting ‘‘January
1, 2029’’.
(2) EFFECTIVE DATE.—The amendments made by this sub-
section shall apply to taxable years beginning after December
31, 2026.
SEC. 13904. REMOVAL OF HARMFUL SMALL BUSINESS TAXES; EXTEN-
SION OF LIMITATION ON DEDUCTION FOR STATE AND
LOCAL, ETC., TAXES.
(a) REMOVAL OF HARMFUL SMALL BUSINESS TAXES.—Subpara-
graph (D) of section 59(k)(1), as added by section 10101, is amended
to read as follows:
H. R. 5376—198
‘‘(D) SPECIAL RULES FOR DETERMINING APPLICABLE COR-
PORATION STATUS.—Solely for purposes of determining
whether a corporation is an applicable corporation under
this paragraph, all adjusted financial statement income
of persons treated as a single employer with such corpora-
tion under subsection (a) or (b) of section 52 shall be
treated as adjusted financial statement income of such
corporation, and adjusted financial statement income of
such corporation shall be determined without regard to
paragraphs (2)(D)(i) and (11) of section 56A(c).’’.
(b) EXTENSION OF LIMITATION ON DEDUCTION FOR STATE AND
LOCAL, ETC., TAXES.—
(1) IN GENERAL.—Section 164(b)(6) is amended—
(A) in the heading, by striking ‘‘2025’’ and inserting
‘‘2026’’, and
(B) by striking ‘‘2026’’ and inserting ‘‘2027’’.
(2) EFFECTIVE DATE.—The amendments made by this sub-
section shall apply to taxable years beginning after December
31, 2022.
TITLE II—COMMITTEE ON AGRI-
CULTURE, NUTRITION, AND FOR-
ESTRY
Subtitle A—General Provisions
SEC. 20001. DEFINITION OF SECRETARY.
In this title, the term ‘‘Secretary’’ means the Secretary of Agri-
culture.
Subtitle B—Conservation
SEC. 21001. ADDITIONAL AGRICULTURAL CONSERVATION INVEST-
MENTS.
(a) APPROPRIATIONS.—In addition to amounts otherwise avail-
able (and subject to subsection (b)), there are appropriated to the
Secretary, out of any money in the Treasury not otherwise appro-
priated, to remain available until September 30, 2031 (subject to
the condition that no such funds may be disbursed after September
30, 2031)—
(1) to carry out, using the facilities and authorities of
the Commodity Credit Corporation, the environmental quality
incentives program under subchapter A of chapter 4 of subtitle
D of title XII of the Food Security Act of 1985 (16 U.S.C.
3839aa through 3839aa–8)—
(A)(i) $250,000,000 for fiscal year 2023;
(ii) $1,750,000,000 for fiscal year 2024;
(iii) $3,000,000,000 for fiscal year 2025; and
(iv) $3,450,000,000 for fiscal year 2026; and
(B) subject to the conditions on the use of the funds
that—
(i) section 1240B(f)(1) of the Food Security Act
of 1985 (16 U.S.C. 3839aa–2(f)(1)) shall not apply;
H. R. 5376—199
(ii) section 1240H(c)(2) of the Food Security Act
of 1985 (16 U.S.C. 3839aa–8(c)(2)) shall be applied—
(I) by substituting ‘‘$50,000,000’’ for
‘‘$25,000,000’’; and
(II) with the Secretary prioritizing proposals
that utilize diet and feed management to reduce
enteric methane emissions from ruminants; and
(iii) the funds shall be available for 1 or more
agricultural conservation practices or enhancements
that the Secretary determines directly improve soil
carbon, reduce nitrogen losses, or reduce, capture,
avoid, or sequester carbon dioxide, methane, or nitrous
oxide emissions, associated with agricultural produc-
tion;
(2) to carry out, using the facilities and authorities of
the Commodity Credit Corporation, the conservation steward-
ship program under subchapter B of that chapter (16 U.S.C.
3839aa–21 through 3839aa–25)—
(A)(i) $250,000,000 for fiscal year 2023;
(ii) $500,000,000 for fiscal year 2024;
(iii) $1,000,000,000 for fiscal year 2025; and
(iv) $1,500,000,000 for fiscal year 2026; and
(B) subject to the condition on the use of the funds
that the funds shall only be available for 1 or more agricul-
tural conservation practices, enhancements, or bundles that
the Secretary determines directly improve soil carbon,
reduce nitrogen losses, or reduce, capture, avoid, or
sequester carbon dioxide, methane, or nitrous oxide emis-
sions, associated with agricultural production;
(3) to carry out, using the facilities and authorities of
the Commodity Credit Corporation, the agricultural conserva-
tion easement program under subtitle H of title XII of that
Act (16 U.S.C. 3865 through 3865d) for easements or interests
in land that will most reduce, capture, avoid, or sequester
carbon dioxide, methane, or nitrous oxide emissions associated
with land eligible for the program—
(A) $100,000,000 for fiscal year 2023;
(B) $200,000,000 for fiscal year 2024;
(C) $500,000,000 for fiscal year 2025; and
(D) $600,000,000 for fiscal year 2026; and
(4) to carry out, using the facilities and authorities of
the Commodity Credit Corporation, the regional conservation
partnership program under subtitle I of title XII of that Act
(16 U.S.C. 3871 through 3871f)—
(A)(i) $250,000,000 for fiscal year 2023;
(ii) $800,000,000 for fiscal year 2024;
(iii) $1,500,000,000 for fiscal year 2025; and
(iv) $2,400,000,000 for fiscal year 2026; and
(B) subject to the conditions on the use of the funds
that—
(i) section 1271C(d)(2)(B) of the Food Security Act
of 1985 (16 U.S.C. 3871c(d)(2)(B)) shall not apply; and
(ii) the Secretary shall prioritize partnership agree-
ments under section 1271C(d) of the Food Security
Act of 1985 (16 U.S.C. 3871c(d)) that support the
implementation of conservation projects that assist
agricultural producers and nonindustrial private
H. R. 5376—200
forestland owners in directly improving soil carbon,
reducing nitrogen losses, or reducing, capturing,
avoiding, or sequestering carbon dioxide, methane, or
nitrous oxide emissions, associated with agricultural
production.
(b) CONDITIONS.—The funds made available under subsection
(a) are subject to the conditions that the Secretary shall not—
(1) enter into any agreement—
(A) that is for a term extending beyond September
30, 2031; or
(B) under which any payment could be outlaid or funds
disbursed after September 30, 2031; or
(2) use any other funds available to the Secretary to satisfy
obligations initially made under this section.
(c) CONFORMING AMENDMENTS.—
(1) Section 1240B of the Food Security Act of 1985 (16
U.S.C. 3839aa–2) is amended—
(A) in subsection (a), by striking ‘‘2023’’ and inserting
‘‘2031’’; and
(B) in subsection (f)(2)(B)—
(i) in the subparagraph heading, by striking ‘‘2023’’
and inserting ‘‘2031’’; and
(ii) by striking ‘‘2023’’ and inserting ‘‘2031’’.
(2) Section 1240H of the Food Security Act of 1985 (16
U.S.C. 3839aa–8) is amended by striking ‘‘2023’’ each place
it appears and inserting ‘‘2031’’.
(3) Section 1240J(a) of the Food Security Act of 1985 (16
U.S.C. 3839aa–22(a)) is amended, in the matter preceding para-
graph (1), by striking ‘‘2023’’ and inserting ‘‘2031’’.
(4) Section 1240L(h)(2)(A) of the Food Security Act of 1985
(16 U.S.C. 3839aa–24(h)(2)(A)) is amended by striking ‘‘2023’’
and inserting ‘‘2031’’.
(5) Section 1241 of the Food Security Act of 1985 (16
U.S.C. 3841) is amended—
(A) in subsection (a)—
(i) in the matter preceding paragraph (1), by
striking ‘‘2023’’ and inserting ‘‘2031’’;
(ii) in paragraph (2)(F), by striking ‘‘2023’’ and
inserting ‘‘2031’’; and
(iii) in paragraph (3), by striking ‘‘fiscal year 2023’’
each place it appears and inserting ‘‘each of fiscal
years 2023 through 2031’’;
(B) in subsection (b), by striking ‘‘2023’’ and inserting
‘‘2031’’; and
(C) in subsection (h)—
(i) in paragraph (1)(B), in the subparagraph
heading, by striking ‘‘2023’’ and inserting ‘‘2031’’; and
(ii) by striking ‘‘2023’’ each place it appears and
inserting ‘‘2031’’.
(6) Section 1244(n)(3)(A) of the Food Security Act of 1985
(16 U.S.C. 3844(n)(3)(A)) is amended by striking ‘‘2023’’ and
inserting ‘‘2031’’.
(7) Section 1271D(a) of the Food Security Act of 1985
(16 U.S.C. 3871d(a)) is amended by striking ‘‘2023’’ and
inserting ‘‘2031’’.
H. R. 5376—201
SEC. 21002. CONSERVATION TECHNICAL ASSISTANCE.
(a) APPROPRIATIONS.—In addition to amounts otherwise avail-
able (and subject to subsection (b)), there are appropriated to the
Secretary for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, to remain available until September
30, 2031 (subject to the condition that no such funds may be
disbursed after September 30, 2031)—
(1) $1,000,000,000 to provide conservation technical assist-
ance through the Natural Resources Conservation Service; and
(2) $300,000,000 to carry out a program to quantify carbon
sequestration and carbon dioxide, methane, and nitrous oxide
emissions, through which the Natural Resources Conservation
Service shall collect field-based data to assess the carbon
sequestration and reduction in carbon dioxide, methane, and
nitrous oxide emissions outcomes associated with activities car-
ried out pursuant to this section and use the data to monitor
and track those carbon sequestration and emissions trends
through the Greenhouse Gas Inventory and Assessment Pro-
gram of the Department of Agriculture.
(b) CONDITIONS.—The funds made available under this section
are subject to the conditions that the Secretary shall not—
(1) enter into any agreement—
(A) that is for a term extending beyond September
30, 2031; or
(B) under which any payment could be outlaid or funds
disbursed after September 30, 2031;
(2) use any other funds available to the Secretary to satisfy
obligations initially made under this section; or
(3) interpret this section to authorize funds of the Com-
modity Credit Corporation for activities under this section if
such funds are not expressly authorized or currently expended
for such purposes.
(c) ADMINISTRATIVE COSTS.—In addition to amounts otherwise
available, there is appropriated to the Secretary for fiscal year
2022, out of any money in the Treasury not otherwise appropriated,
$100,000,000, to remain available until September 30, 2028, for
administrative costs of the agencies and offices of the Department
of Agriculture for costs related to implementing this section.
Subtitle C—Rural Development and
Agricultural Credit
SEC. 22001. ADDITIONAL FUNDING FOR ELECTRIC LOANS FOR RENEW-
ABLE ENERGY.
Section 9003 of the Farm Security and Rural Investment Act
of 2002 (7 U.S.C. 8103) is amended by adding at the end the
following:
‘‘(h) ADDITIONAL FUNDING FOR ELECTRIC LOANS FOR RENEW-
ABLE ENERGY.—
‘‘(1) APPROPRIATIONS.—Notwithstanding subsections (a)
through (e), and (g), in addition to amounts otherwise available,
there is appropriated to the Secretary for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated,
$1,000,000,000, to remain available until September 30, 2031,
H. R. 5376—202
for the cost of loans under section 317 of the Rural Electrifica-
tion Act of 1936 (7 U.S.C. 940g), including for projects that
store electricity that support the types of eligible projects under
that section, which shall be forgiven in an amount that is
not greater than 50 percent of the loan based on how the
borrower and the project meets the terms and conditions for
loan forgiveness consistent with the purposes of that section
established by the Secretary, except as provided in paragraph
(3).
‘‘(2) LIMITATION.—The Secretary shall not enter into any
loan agreement pursuant this subsection that could result in
disbursements after September 30, 2031.
‘‘(3) EXCEPTION.—The Secretary shall establish criteria for
waiving the 50 percent limitation described in paragraph (1).’’.
SEC. 22002. RURAL ENERGY FOR AMERICA PROGRAM.
(a) APPROPRIATION.—In addition to amounts otherwise avail-
able, there is appropriated to the Secretary, out of any money
in the Treasury not otherwise appropriated, for eligible projects
under section 9007 of the Farm Security and Rural Investment
Act of 2002 (7 U.S.C. 8107), and notwithstanding section
9007(c)(3)(A) of that Act, the amount of a grant shall not exceed
50 percent of the cost of the activity carried out using the grant
funds—
(1) $820,250,000 for fiscal year 2022, to remain available
until September 30, 2031; and
(2) $180,276,500 for each of fiscal years 2023 through 2027,
to remain available until September 30, 2031.
(b) UNDERUTILIZED RENEWABLE ENERGY TECHNOLOGIES.—In
addition to amounts otherwise available, there is appropriated to
the Secretary, out of any money in the Treasury not otherwise
appropriated, to provide grants and loans guaranteed by the Sec-
retary (including the costs of such loans) under the program
described in subsection (a) relating to underutilized renewable
energy technologies, and to provide technical assistance for applying
to the program described in subsection (a), including for underuti-
lized renewable energy technologies, notwithstanding section
9007(c)(3)(A) of the Farm Security and Rural Investment Act of
2002 (7 U.S.C. 8107(c)(3)(A)), the amount of a grant shall not
exceed 50 percent of the cost of the activity carried out using
the grant funds, and to the extent the following amounts remain
available at the end of each fiscal year, the Secretary shall use
such amounts in accordance with subsection (a)—
(1) $144,750,000 for fiscal year 2022, to remain available
until September 30, 2031; and
(2) $31,813,500 for each of fiscal years 2023 through 2027,
to remain available until September 30, 2031.
(c) LIMITATION.—The Secretary shall not enter into, pursuant
to this section—
(1) any loan agreement that may result in a disbursement
after September 30, 2031; or
(2) any grant agreement that may result in any outlay
after September 30, 2031.
H. R. 5376—203
SEC. 22003. BIOFUEL INFRASTRUCTURE AND AGRICULTURE PRODUCT
MARKET EXPANSION.
Section 9003 of the Farm Security and Rural Investment Act
of 2002 (7 U.S.C. 8103) (as amended by section 22001) is amended
by adding at the end the following:
‘‘(i) BIOFUEL INFRASTRUCTURE AND AGRICULTURE PRODUCT
MARKET EXPANSION.—
‘‘(1) APPROPRIATION.—Notwithstanding subsections (a)
through (e) and subsection (g), in addition to amounts otherwise
available, there is appropriated to the Secretary for fiscal year
2022, out of any money in the Treasury not otherwise appro-
priated, $500,000,000, to remain available until September 30,
2031, to carry out this subsection.
‘‘(2) USE OF FUNDS.—The Secretary shall use the amounts
made available by paragraph (1) to provide grants, for which
the Federal share shall be not more than 75 percent of the
total cost of carrying out a project for which the grant is
provided, on a competitive basis, to increase the sale and use
of agricultural commodity-based fuels through infrastructure
improvements for blending, storing, supplying, or distributing
biofuels, except for transportation infrastructure not on location
where such biofuels are blended, stored, supplied, or distrib-
uted—
‘‘(A) by installing, retrofitting, or otherwise upgrading
fuel dispensers or pumps and related equipment, storage
tank system components, and other infrastructure required
at a location related to dispensing certain biofuel blends
to ensure the increased sales of fuels with high levels
of commodity-based ethanol and biodiesel that are at or
greater than the levels required in the Notice of Funding
Availability for the Higher Blends Infrastructure Incentive
Program for Fiscal Year 2020, published in the Federal
Register (85 Fed. Reg. 26656), as determined by the Sec-
retary; and
‘‘(B) by building and retrofitting home heating oil dis-
tribution centers or equivalent entities and distribution
systems for ethanol and biodiesel blends.’’.
SEC. 22004. USDA ASSISTANCE FOR RURAL ELECTRIC COOPERATIVES.
Section 9003 of the Farm Security and Rural Investment Act
of 2002 (7 U.S.C. 8103) (as amended by section 22003) is amended
by adding at the end the following:
‘‘(j) USDA ASSISTANCE FOR RURAL ELECTRIC COOPERATIVES.—
‘‘(1) APPROPRIATION.—Notwithstanding subsections (a)
through (e) and (g), in addition to amounts otherwise available,
there is appropriated to the Secretary for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated,
$9,700,000,000, to remain available until September 30, 2031,
for the long-term resiliency, reliability, and affordability of rural
electric systems by providing to an eligible entity (defined as
an electric cooperative described in section 501(c)(12) or
1381(a)(2) of the Internal Revenue Code of 1986 and is or
has been a Rural Utilities Service electric loan borrower pursu-
ant to the Rural Electrification Act of 1936 or serving a
predominantly rural area or a wholly or jointly owned sub-
sidiary of such electric cooperative) loans, modifications of loans,
H. R. 5376—204
the cost of loans and modifications, and other financial assist-
ance to achieve the greatest reduction in carbon dioxide,
methane, and nitrous oxide emissions associated with rural
electric systems through the purchase of renewable energy,
renewable energy systems, zero-emission systems, and carbon
capture and storage systems, to deploy such systems, or to
make energy efficiency improvements to electric generation and
transmission systems of the eligible entity after the date of
enactment of this subsection.
‘‘(2) LIMITATION.—No eligible entity may receive an amount
equal to more than 10 percent of the total amount made avail-
able by this subsection.
‘‘(3) REQUIREMENT.—The amount of a grant under this
subsection shall be not more than 25 percent of the total
project costs of the eligible entity carrying out a project using
a grant under this subsection.
‘‘(4) PROHIBITION.—Nothing in this subsection shall be
interpreted to authorize funds of the Commodity Credit Cor-
poration for activities under this subsection if such funds are
not expressly authorized or currently expended for such pur-
poses.
‘‘(5) DISBURSEMENTS.—The Secretary shall not enter into,
pursuant to this subsection—
‘‘(A) any loan agreement that may result in a disburse-
ment after September 30, 2031; or
‘‘(B) any grant agreement that may result in any outlay
after September 30, 2031.’’.
SEC. 22005. ADDITIONAL USDA RURAL DEVELOPMENT ADMINISTRA-
TIVE FUNDS.
In addition to amounts otherwise available, there is appro-
priated to the Secretary for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $100,000,000, to remain
available until September 30, 2031, for administrative costs and
salaries and expenses for the Rural Development mission area
and administrative costs of the agencies and offices of the Depart-
ment for costs related to implementing this subtitle.
SEC. 22006. FARM LOAN IMMEDIATE RELIEF FOR BORROWERS WITH
AT-RISK AGRICULTURAL OPERATIONS.
In addition to amounts otherwise available, there is appro-
priated to the Secretary for fiscal year 2022, out of amounts in
the Treasury not otherwise appropriated, $3,100,000,000, to remain
available until September 30, 2031, to provide payments to, for
the cost of loans or loan modifications for, or to carry out section
331(b)(4) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1981(b)(4)) with respect to distressed borrowers of direct
or guaranteed loans administered by the Farm Service Agency
under subtitle A, B, or C of that Act (7 U.S.C. 1922 through
1970). In carrying out this section, the Secretary shall provide
relief to those borrowers whose agricultural operations are at finan-
cial risk as expeditiously as possible, as determined by the Sec-
retary.
SEC. 22007. USDA ASSISTANCE AND SUPPORT FOR UNDERSERVED
FARMERS, RANCHERS, AND FORESTERS.
Section 1006 of the American Rescue Plan Act of 2021 (7
U.S.C. 2279 note; Public Law 117–2) is amended to read as follows:
H. R. 5376—205
‘‘SEC. 1006. USDA ASSISTANCE AND SUPPORT FOR UNDERSERVED
FARMERS, RANCHERS, FORESTERS.
‘‘(a) TECHNICAL AND OTHER ASSISTANCE.—In addition to
amounts otherwise available, there is appropriated to the Secretary
of Agriculture for fiscal year 2022, to remain available until Sep-
tember 30, 2031, out of any money in the Treasury not otherwise
appropriated, $125,000,000 to provide outreach, mediation, financial
training, capacity building training, cooperative development and
agricultural credit training and support, and other technical assist-
ance on issues concerning food, agriculture, agricultural credit, agri-
cultural extension, rural development, or nutrition to underserved
farmers, ranchers, or forest landowners, including veterans, limited
resource producers, beginning farmers and ranchers, and farmers,
ranchers, and forest landowners living in high poverty areas.
‘‘(b) LAND LOSS ASSISTANCE.—In addition to amounts otherwise
available, there is appropriated to the Secretary of Agriculture
for fiscal year 2022, to remain available until September 30, 2031,
out of any money in the Treasury not otherwise appropriated,
$250,000,000 to provide grants and loans to eligible entities, as
determined by the Secretary, to improve land access (including
heirs’ property and fractionated land issues) for underserved
farmers, ranchers, and forest landowners, including veterans, lim-
ited resource producers, beginning farmers and ranchers, and
farmers, ranchers, and forest landowners living in high poverty
areas.
‘‘(c) EQUITY COMMISSIONS.—In addition to amounts otherwise
available, there is appropriated to the Secretary of Agriculture
for fiscal year 2022, to remain available until September 30, 2031,
out of any money in the Treasury not otherwise appropriated,
$10,000,000 to fund the activities of one or more equity commissions
that will address racial equity issues within the Department of
Agriculture and the programs of the Department of Agriculture.
‘‘(d) RESEARCH, EDUCATION, AND EXTENSION.—In addition to
amounts otherwise available, there is appropriated to the Secretary
of Agriculture for fiscal year 2022, to remain available until Sep-
tember 30, 2031, out of any money in the Treasury not otherwise
appropriated, $250,000,000 to support and supplement agricultural
research, education, and extension, as well as scholarships and
programs that provide internships and pathways to agricultural
sector or Federal employment, for 1890 Institutions (as defined
in section 2 of the Agricultural, Research, Extension, and Education
Reform Act of 1998 (7 U.S.C. 7601)), 1994 Institutions (as defined
in section 532 of the Equity in Educational Land-Grant Status
Act of 1994 (7 U.S.C. 301 note; Public Law 103–382)), Alaska
Native serving institutions and Native Hawaiian serving institu-
tions eligible to receive grants under subsections (a) and (b), respec-
tively, of section 1419B of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3156), His-
panic-serving institutions eligible to receive grants under section
1455 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3241), and the insular area
institutions of higher education located in the territories of the
United States, as referred to in section 1489 of the National Agricul-
tural Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3361).
‘‘(e) DISCRIMINATION FINANCIAL ASSISTANCE.—In addition to
amounts otherwise available, there is appropriated to the Secretary
H. R. 5376—206
of Agriculture for fiscal year 2022, to remain available until Sep-
tember 30, 2031, out of any money in the Treasury not otherwise
appropriated, $2,200,000,000 for a program to provide financial
assistance, including the cost of any financial assistance, to farmers,
ranchers, or forest landowners determined to have experienced
discrimination prior to January 1, 2021, in Department of Agri-
culture farm lending programs, under which the amount of financial
assistance provided to a recipient may be not more than $500,000,
as determined to be appropriate based on any consequences experi-
enced from the discrimination, which program shall be administered
through 1 or more qualified nongovernmental entities selected by
the Secretary subject to standards set and enforced by the Secretary.
‘‘(f) ADMINISTRATIVE COSTS.—In addition to amounts otherwise
available, there is appropriated to the Secretary of Agriculture
for fiscal year 2022, to remain available until September 30, 2031,
out of any money in the Treasury not otherwise appropriated,
$24,000,000 for administrative costs, including training employees,
of the agencies and offices of the Department of Agriculture to
carry out this section.
‘‘(g) LIMITATION.—The funds made available under this section
are subject to the condition that the Secretary shall not—
‘‘(1) enter into any agreement under which any payment
could be outlaid or funds disbursed after September 30, 2031;
or
‘‘(2) use any other funds available to the Secretary to
satisfy obligations initially made under this section.’’.
SEC. 22008. REPEAL OF FARM LOAN ASSISTANCE.
Section 1005 of the American Rescue Plan Act of 2021 (7
U.S.C. 1921 note; Public Law 117–2) is repealed.
Subtitle D—Forestry
SEC. 23001. NATIONAL FOREST SYSTEM RESTORATION AND FUELS
REDUCTION PROJECTS.
(a) APPROPRIATIONS.—In addition to amounts otherwise avail-
able, there are appropriated to the Secretary for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated,
to remain available until September 30, 2031—
(1) $1,800,000,000 for hazardous fuels reduction projects
on National Forest System land within the wildland-urban
interface;
(2) $200,000,000 for vegetation management projects on
National Forest System land carried out in accordance with
a plan developed under section 303(d)(1) or 304(a)(3) of the
Healthy Forests Restoration Act of 2003 (16 U.S.C. 6542(d)(1)
or 6543(a)(3));
(3) $100,000,000 to provide for environmental reviews by
the Chief of the Forest Service in satisfying the obligations
of the Chief of the Forest Service under the National Environ-
mental Policy Act of 1969 (42 U.S.C. 4321 through 4370m–
12); and
(4) $50,000,000 for the protection of old-growth forests on
National Forest System land and to complete an inventory
of old-growth forests and mature forests within the National
Forest System.
H. R. 5376—207
(b) RESTRICTIONS.—None of the funds made available by para-
graph (1) or (2) of subsection (a) may be used for any activity—
(1) conducted in a wilderness area or wilderness study
area;
(2) that includes the construction of a permanent road
or motorized trail;
(3) that includes the construction of a temporary road,
except in the case of a temporary road that is decommissioned
by the Secretary not later than 3 years after the earlier of—
(A) the date on which the temporary road is no longer
needed; and
(B) the date on which the project for which the tem-
porary road was constructed is completed;
(4) inconsistent with the applicable land management plan;
(5) inconsistent with the prohibitions of the rule of the
Forest Service entitled ‘‘Special Areas; Roadless Area Conserva-
tion’’ (66 Fed. Reg. 3244 (January 12, 2001)), as modified by
subparts C and D of part 294 of title 36, Code of Federal
Regulations; or
(6) carried out on any land that is not National Forest
System land, including other forested land on Federal, State,
Tribal, or private land.
(c) LIMITATIONS.—Nothing in this section shall be interpreted
to authorize funds of the Commodity Credit Corporation for activi-
ties under this section if such funds are not expressly authorized
or currently expended for such purposes.
(d) COST-SHARING WAIVER.—
(1) IN GENERAL.—The non-Federal cost-share requirement
of a project described in paragraph (2) may be waived at the
discretion of the Secretary.
(2) PROJECT DESCRIBED.—A project referred to in paragraph
(1) is a project that—
(A) is carried out using funds made available under
this section;
(B) requires a partnership agreement, including a
cooperative agreement or mutual interest agreement; and
(C) is subject to a non-Federal cost-share requirement.
(e) DEFINITIONS.—In this section:
(1) DECOMMISSION.—The term ‘‘decommission’’ means, with
respect to a road—
(A) reestablishing native vegetation on the road;
(B) restoring any natural drainage, watershed function,
or other ecological processes that were disrupted or
adversely impacted by the road by removing or
hydrologically disconnecting the road prism and reestab-
lishing stable slope contours; and
(C) effectively blocking the road to vehicular traffic,
where feasible.
(2) ECOLOGICAL INTEGRITY.—The term ‘‘ecological integrity’’
has the meaning given the term in section 219.19 of title
36, Code of Federal Regulations (as in effect on the date of
enactment of this Act).
(3) HAZARDOUS FUELS REDUCTION PROJECT.—The term ‘‘haz-
ardous fuels reduction project’’ means an activity, including
the use of prescribed fire, to protect structures and communities
from wildfire that is carried out on National Forest System
land.
H. R. 5376—208
(4) RESTORATION.—The term ‘‘restoration’’ has the meaning
given the term in section 219.19 of title 36, Code of Federal
Regulations (as in effect on the date of enactment of this
Act).
(5) VEGETATION MANAGEMENT PROJECT.—The term ‘‘vegeta-
tion management project’’ means an activity carried out on
National Forest System land to enhance the ecological integrity
and achieve the restoration of a forest ecosystem through the
removal of vegetation, the use of prescribed fire, the restoration
of aquatic habitat, or the decommissioning of an unauthorized,
temporary, or system road.
(6) WILDLAND-URBAN INTERFACE.—The term ‘‘wildland-
urban interface’’ has the meaning given the term in section
101 of the Healthy Forests Restoration Act of 2003 (16 U.S.C.
6511).
SEC. 23002. COMPETITIVE GRANTS FOR NON-FEDERAL FOREST LAND-
OWNERS.
(a) APPROPRIATIONS.—In addition to amounts otherwise avail-
able, there are appropriated to the Secretary for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated,
to remain available until September 30, 2031—
(1) $150,000,000 for the competitive grant program under
section 13A of the Cooperative Forestry Assistance Act of 1978
(16 U.S.C. 2109a) for providing through that program a cost
share to carry out climate mitigation or forest resilience prac-
tices in the case of underserved forest landowners, subject
to the condition that subsection (h) of that section shall not
apply;
(2) $150,000,000 for the competitive grant program under
section 13A of the Cooperative Forestry Assistance Act of 1978
(16 U.S.C. 2109a) for providing through that program grants
to support the participation of underserved forest landowners
in emerging private markets for climate mitigation or forest
resilience, subject to the condition that subsection (h) of that
section shall not apply;
(3) $100,000,000 for the competitive grant program under
section 13A of the Cooperative Forestry Assistance Act of 1978
(16 U.S.C. 2109a) for providing through that program grants
to support the participation of forest landowners who own less
than 2,500 acres of forest land in emerging private markets
for climate mitigation or forest resilience, subject to the condi-
tion that subsection (h) of that section shall not apply;
(4) $50,000,000 for the competitive grant program under
section 13A of the Cooperative Forestry Assistance Act of 1978
(16 U.S.C. 2109a) to provide grants to states and other eligible
entities to provide payments to owners of private forest land
for implementation of forestry practices on private forest land,
that are determined by the Secretary, based on the best avail-
able science, to provide measurable increases in carbon seques-
tration and storage beyond customary practices on comparable
land, subject to the conditions that—
(A) those payments shall not preclude landowners from
participation in other public and private sector financial
incentive programs; and
(B) subsection (h) of that section shall not apply; and
H. R. 5376—209
(5) $100,000,000 to provide grants under the wood innova-
tion grant program under section 8643 of the Agriculture
Improvement Act of 2018 (7 U.S.C. 7655d), including for the
construction of new facilities that advance the purposes of
the program and for the hauling of material removed to reduce
hazardous fuels to locations where that material can be utilized,
subject to the conditions that—
(A) the amount of such a grant shall be not more
than $5,000,000; and
(B) notwithstanding subsection (d) of that section, a
recipient of such a grant shall provide funds equal to
not less than 50 percent of the amount received under
the grant, to be derived from non-Federal sources.
(b) COST-SHARING REQUIREMENT.—Any partnership agree-
ments, including cooperative agreements and mutual interest agree-
ments, using funds made available under this section shall be
subject to a non-Federal cost-share requirement of not less than
20 percent of the project cost, which may be waived at the discretion
of the Secretary.
(c) LIMITATIONS.—Nothing in this section shall be interpreted
to authorize funds of the Commodity Credit Corporation for activi-
ties under this section if such funds are not expressly authorized
or currently expended for such purposes.
SEC. 23003. STATE AND PRIVATE FORESTRY CONSERVATION PRO-
GRAMS.
(a) APPROPRIATIONS.—In addition to amounts otherwise avail-
able, there are appropriated to the Secretary for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated,
to remain available until September 30, 2031—
(1) $700,000,000 to provide competitive grants to States
through the Forest Legacy Program established under section
7 of the Cooperative Forestry Assistance Act of 1978 (16 U.S.C.
2103c) for projects for the acquisition of land and interests
in land; and
(2) $1,500,000,000 to provide multiyear, programmatic,
competitive grants to a State agency, a local governmental
entity, an agency or governmental entity of the District of
Columbia, an agency or governmental entity of an insular area
(as defined in section 1404 of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3103)), an Indian Tribe, or a nonprofit organization through
the Urban and Community Forestry Assistance program estab-
lished under section 9(c) of the Cooperative Forestry Assistance
Act of 1978 (16 U.S.C. 2105(c)) for tree planting and related
activities.
(b) WAIVER.—Any non-Federal cost-share requirement other-
wise applicable to projects carried out under this section may be
waived at the discretion of the Secretary.
SEC. 23004. LIMITATION.
The funds made available under this subtitle are subject to
the condition that the Secretary shall not—
(1) enter into any agreement—
(A) that is for a term extending beyond September
30, 2031; or
(B) under which any payment could be outlaid or funds
disbursed after September 30, 2031; or
H. R. 5376—210
(2) use any other funds available to the Secretary to satisfy
obligations initially made under this subtitle.
SEC. 23005. ADMINISTRATIVE COSTS.
In addition to amounts otherwise available, there is appro-
priated to the Secretary for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $100,000,000 to remain
available until September 30, 2031, for administrative costs of
the agencies and offices of the Department of Agriculture for costs
related to implementing this subtitle.
TITLE III—COMMITTEE ON BANKING,
HOUSING, AND URBAN AFFAIRS
SEC. 30001. ENHANCED USE OF DEFENSE PRODUCTION ACT OF 1950.
In addition to amounts otherwise available, there is appro-
priated for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, $500,000,000, to remain available until
September 30, 2024, to carry out the Defense Production Act of
1950 (50 U.S.C. 4501 et seq.).
SEC. 30002. IMPROVING ENERGY EFFICIENCY OR WATER EFFICIENCY
OR CLIMATE RESILIENCE OF AFFORDABLE HOUSING.
(a) APPROPRIATION.—In addition to amounts otherwise avail-
able, there is appropriated to the Secretary of Housing and Urban
Development (in this section referred to as the ‘‘Secretary’’) for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated—
(1) $837,500,000, to remain available until September 30,
2028, for the cost of providing direct loans, the costs of modi-
fying such loans, and for grants, as provided for and subject
to terms and conditions in subsection (b), including to subsidize
gross obligations for the principal amount of such loans, not
to exceed $4,000,000,000, to fund projects that improve energy
or water efficiency, enhance indoor air quality or sustainability,
implement the use of zero-emission electricity generation, low-
emission building materials or processes, energy storage, or
building electrification strategies, or address climate resilience,
of an eligible property;
(2) $60,000,000, to remain available until September 30,
2030, for the costs to the Secretary for information technology,
research and evaluation, and administering and overseeing the
implementation of this section;
(3) $60,000,000, to remain available until September 30,
2029, for expenses of contracts or cooperative agreements
administered by the Secretary; and
(4) $42,500,000, to remain available until September 30,
2028, for energy and water benchmarking of properties eligible
to receive grants or loans under this section, regardless of
whether they actually received such grants or loans, along
with associated data analysis and evaluation at the property
and portfolio level, and the development of information tech-
nology systems necessary for the collection, evaluation, and
analysis of such data.
(b) LOAN AND GRANT TERMS AND CONDITIONS.—Amounts made
available under this section shall be for direct loans, grants, and
H. R. 5376—211
direct loans that can be converted to grants to eligible recipients
that agree to an extended period of affordability for the property.
(c) DEFINITIONS.—As used in this section—
(1) the term ‘‘eligible recipient’’ means any owner or sponsor
of an eligible property; and
(2) the term ‘‘eligible property’’ means a property assisted
pursuant to—
(A) section 202 of the Housing Act of 1959 (12 U.S.C.
1701q);
(B) section 202 of the Housing Act of 1959 (former
12 U.S.C. 1701q), as such section existed before the enact-
ment of the Cranston-Gonzalez National Affordable
Housing Act;
(C) section 811 of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 8013);
(D) section 8(b) of the United States Housing Act of
1937 (42 U.S.C. 1437f(b));
(E) section 236 of the National Housing Act (12 U.S.C.
1715z–1); or
(F) a Housing Assistance Payments contract for
Project-Based Rental Assistance in fiscal year 2021.
(d) WAIVER.—The Secretary may waive or specify alternative
requirements for any provision of subsection (c) or (bb) of section
8 of the United States Housing Act of 1937 (42 U.S.C. 1437f(c),
1437f(bb)) upon a finding that the waiver or alternative requirement
is necessary to facilitate the use of amounts made available under
this section.
(e) IMPLEMENTATION.—The Secretary shall have the authority
to establish by notice any requirements that the Secretary deter-
mines are necessary for timely and effective implementation of
the program and expenditure of funds appropriated, which require-
ments shall take effect upon issuance.
TITLE IV—COMMITTEE ON COMMERCE,
SCIENCE, AND TRANSPORTATION
SEC. 40001. INVESTING IN COASTAL COMMUNITIES AND CLIMATE
RESILIENCE.
(a) IN GENERAL.—In addition to amounts otherwise available,
there is appropriated to the National Oceanic and Atmospheric
Administration for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $2,600,000,000, to remain
available until September 30, 2026, to provide funding through
direct expenditure, contracts, grants, cooperative agreements, or
technical assistance to coastal states (as defined in paragraph (4)
of section 304 of the Coastal Zone Management Act of 1972 (16
U.S.C. 1453(4))), the District of Columbia, Tribal Governments,
nonprofit organizations, local governments, and institutions of
higher education (as defined in subsection (a) of section 101 of
the Higher Education Act of 1965 (20 U.S.C. 1001(a))), for the
conservation, restoration, and protection of coastal and marine habi-
tats, resources, Pacific salmon and other marine fisheries, to enable
coastal communities to prepare for extreme storms and other
changing climate conditions, and for projects that support natural
resources that sustain coastal and marine resource dependent
H. R. 5376—212
communities, marine fishery and marine mammal stock assess-
ments, and for related administrative expenses.
(b) TRIBAL GOVERNMENT DEFINED.—In this section, the term
‘‘Tribal Government’’ means the recognized governing body of any
Indian or Alaska Native tribe, band, nation, pueblo, village, commu-
nity, component band, or component reservation, individually identi-
fied (including parenthetically) in the list published most recently
as of the date of enactment of this subsection pursuant to section
104 of the Federally Recognized Indian Tribe List Act of 1994
(25 U.S.C. 5131).
SEC. 40002. FACILITIES OF THE NATIONAL OCEANIC AND
ATMOSPHERIC ADMINISTRATION AND NATIONAL
MARINE SANCTUARIES.
(a) NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION
FACILITIES.—In addition to amounts otherwise available, there is
appropriated to the National Oceanic and Atmospheric Administra-
tion for fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $150,000,000, to remain available until Sep-
tember 30, 2026, for the construction of new facilities, facilities
in need of replacement, piers, marine operations facilities, and
fisheries laboratories.
(b) NATIONAL MARINE SANCTUARIES FACILITIES.—In addition
to amounts otherwise available, there is appropriated to the
National Oceanic and Atmospheric Administration for fiscal year
2022, out of any money in the Treasury not otherwise appropriated,
$50,000,000, to remain available until September 30, 2026, for
the construction of facilities to support the National Marine Sanc-
tuary System established under subsection (c) of section 301 of
the National Marine Sanctuaries Act (16 U.S.C. 1431(c)).
SEC. 40003. NOAA EFFICIENT AND EFFECTIVE REVIEWS.
In addition to amounts otherwise available, there is appro-
priated to the National Oceanic and Atmospheric Administration
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $20,000,000, to remain available until September 30,
2026, to conduct more efficient, accurate, and timely reviews for
planning, permitting and approval processes through the hiring
and training of personnel, and the purchase of technical and sci-
entific services and new equipment, and to improve agency trans-
parency, accountability, and public engagement.
SEC. 40004. OCEANIC AND ATMOSPHERIC RESEARCH AND FORE-
CASTING FOR WEATHER AND CLIMATE.
(a) FORECASTING AND RESEARCH.—In addition to amounts
otherwise available, there is appropriated to the National Oceanic
and Atmospheric Administration for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, $150,000,000,
to remain available until September 30, 2026, to accelerate advances
and improvements in research, observation systems, modeling, fore-
casting, assessments, and dissemination of information to the public
as it pertains to ocean and atmospheric processes related to
weather, coasts, oceans, and climate, and to carry out section 102(a)
of the Weather Research and Forecasting Innovation Act of 2017
(15 U.S.C. 8512(a)), and for related administrative expenses.
(b) RESEARCH GRANTS AND SCIENCE INFORMATION, PRODUCTS,
AND SERVICES.—In addition to amounts otherwise available, there
H. R. 5376—213
are appropriated to the National Oceanic and Atmospheric Adminis-
tration for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, to remain available until September
30, 2026, $50,000,000 for competitive grants to fund climate
research as it relates to weather, ocean, coastal, and atmospheric
processes and conditions, and impacts to marine species and coastal
habitat, and for related administrative expenses.
SEC. 40005. COMPUTING CAPACITY AND RESEARCH FOR WEATHER,
OCEANS, AND CLIMATE.
In addition to amounts otherwise available, there is appro-
priated to the National Oceanic and Atmospheric Administration
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $190,000,000, to remain available until September
30, 2026, for the procurement of additional high-performance com-
puting, data processing capacity, data management, and storage
assets, to carry out section 204(a)(2) of the High-Performance Com-
puting Act of 1991 (15 U.S.C. 5524(a)(2)), and for transaction agree-
ments authorized under section 301(d)(1)(A) of the Weather
Research and Forecasting Innovation Act of 2017 (15 U.S.C.
8531(d)(1)(A)), and for related administrative expenses.
SEC. 40006. ACQUISITION OF HURRICANE FORECASTING AIRCRAFT.
In addition to amounts otherwise available, there is appro-
priated to the National Oceanic and Atmospheric Administration
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $100,000,000, to remain available until September
30, 2026, for the acquisition of hurricane hunter aircraft under
section 413(a) of the Weather Research and Forecasting Innovation
Act of 2017 (15 U.S.C. 8549(a)).
SEC. 40007. ALTERNATIVE FUEL AND LOW-EMISSION AVIATION TECH-
NOLOGY PROGRAM.
(a) APPROPRIATION AND ESTABLISHMENT.—For purposes of
establishing a competitive grant program for eligible entities to
carry out projects located in the United States that produce, trans-
port, blend, or store sustainable aviation fuel, or develop, dem-
onstrate, or apply low-emission aviation technologies, in addition
to amounts otherwise available, there are appropriated to the Sec-
retary for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, to remain available until September
30, 2026—
(1) $244,530,000 for projects relating to the production,
transportation, blending, or storage of sustainable aviation fuel;
(2) $46,530,000 for projects relating to low-emission avia-
tion technologies; and
(3) $5,940,000 to fund the award of grants under this
section, and oversight of the program, by the Secretary.
(b) CONSIDERATIONS.—In carrying out subsection (a), the Sec-
retary shall consider, with respect to a proposed project—
(1) the capacity for the eligible entity to increase the
domestic production and deployment of sustainable aviation
fuel or the use of low-emission aviation technologies among
the United States commercial aviation and aerospace industry;
(2) the projected greenhouse gas emissions from such
project, including emissions resulting from the development
of the project, and the potential the project has to reduce
H. R. 5376—214
or displace, on a lifecycle basis, United States greenhouse gas
emissions associated with air travel;
(3) the capacity to create new jobs and develop supply
chain partnerships in the United States;
(4) for projects related to the production of sustainable
aviation fuel, the projected lifecycle greenhouse gas emissions
benefits from the proposed project, which shall include feedstock
and fuel production and potential direct and indirect green-
house gas emissions (including resulting from changes in land
use); and
(5) the benefits of ensuring a diversity of feedstocks for
sustainable aviation fuel, including the use of waste carbon
oxides and direct air capture.
(c) COST SHARE.—The Federal share of the cost of a project
carried out using grant funds under subsection (a) shall be 75
percent of the total proposed cost of the project, except that such
Federal share shall increase to 90 percent of the total proposed
cost of the project if the eligible entity is a small hub airport
or nonhub airport, as such terms are defined in section 47102
of title 49, United States Code.
(d) FUEL EMISSIONS REDUCTION TEST.—For purposes of clause
(ii) of subsection (e)(7)(E), the Secretary shall, not later than 2
years after the date of enactment of this section, adopt at least
1 methodology for testing lifecycle greenhouse gas emissions that
meets the requirements of such clause.
(e) DEFINITIONS.—In this section:
(1) ELIGIBLE ENTITY.—The term ‘‘eligible entity’’ means—
(A) a State or local government, including the District
of Columbia, other than an airport sponsor;
(B) an air carrier;
(C) an airport sponsor;
(D) an accredited institution of higher education;
(E) a research institution;
(F) a person or entity engaged in the production,
transportation, blending, or storage of sustainable aviation
fuel in the United States or feedstocks in the United States
that could be used to produce sustainable aviation fuel;
(G) a person or entity engaged in the development,
demonstration, or application of low-emission aviation tech-
nologies; or
(H) nonprofit entities or nonprofit consortia with
experience in sustainable aviation fuels, low-emission avia-
tion technologies, or other clean transportation research
programs.
(2) FEEDSTOCK.—The term ‘‘feedstock’’ means sources of
hydrogen and carbon not originating from unrefined or refined
petrochemicals.
(3) INDUCED LAND-USE CHANGE VALUES.—The term
‘‘induced land-use change values’’ means the greenhouse gas
emissions resulting from the conversion of land to the produc-
tion of feedstocks and from the conversion of other land due
to the displacement of crops or animals for which the original
land was previously used.
(4) LIFECYCLE GREENHOUSE GAS EMISSIONS.—The term
‘‘lifecycle greenhouse gas emissions’’ means the combined green-
house gas emissions from feedstock production, collection of
H. R. 5376—215
feedstock, transportation of feedstock to fuel production facili-
ties, conversion of feedstock to fuel, transportation and distribu-
tion of fuel, and fuel combustion in an aircraft engine, as
well as from induced land-use change values.
(5) LOW-EMISSION AVIATION TECHNOLOGIES.—The term
‘‘low-emission aviation technologies’’ means technologies, pro-
duced in the United States, that significantly—
(A) improve aircraft fuel efficiency;
(B) increase utilization of sustainable aviation fuel;
or
(C) reduce greenhouse gas emissions produced during
operation of civil aircraft.
(6) SECRETARY.—The term ‘‘Secretary’’ means the Secretary
of Transportation.
(7) SUSTAINABLE AVIATION FUEL.—The term ‘‘sustainable
aviation fuel’’ means liquid fuel, produced in the United States,
that—
(A) consists of synthesized hydrocarbons;
(B) meets the requirements of—
(i) ASTM International Standard D7566; or
(ii) the co-processing provisions of ASTM Inter-
national Standard D1655, Annex A1 (or such successor
standard);
(C) is derived from biomass (in a similar manner as
such term is defined in section 45K(c)(3) of the Internal
Revenue Code of 1986), waste streams, renewable energy
sources, or gaseous carbon oxides;
(D) is not derived from palm fatty acid distillates;
and
(E) achieves at least a 50 percent lifecycle greenhouse
gas emissions reduction in comparison with petroleum-
based jet fuel, as determined by a test that shows—
(i) the fuel production pathway achieves at least
a 50 percent reduction of the aggregate attributional
core lifecycle emissions and the induced land-use
change values under a lifecycle methodology for
sustainable aviation fuels similar to that adopted by
the International Civil Aviation Organization with the
agreement of the United States; or
(ii) the fuel production pathway achieves at least
a 50 percent reduction of the aggregate attributional
core lifecycle greenhouse gas emissions values and the
induced land-use change values under another method-
ology that the Secretary determines is—
(I) reflective of the latest scientific under-
standing of lifecycle greenhouse gas emissions; and
(II) as stringent as the requirement under
clause (i).
H. R. 5376—216
TITLE V—COMMITTEE ON ENERGY AND
NATURAL RESOURCES
Subtitle A—Energy
PART 1—GENERAL PROVISIONS
SEC. 50111. DEFINITIONS.
In this subtitle:
(1) GREENHOUSE GAS.—The term ‘‘greenhouse gas’’ has the
meaning given the term in section 1610(a) of the Energy Policy
Act of 1992 (42 U.S.C. 13389(a)).
(2) SECRETARY.—The term ‘‘Secretary’’ means the Secretary
of Energy.
(3) STATE.—The term ‘‘State’’ means a State, the District
of Columbia, and a United States Insular Area (as that term
is defined in section 50211).
(4) STATE ENERGY OFFICE.—The term ‘‘State energy office’’
has the meaning given the term in section 124(a) of the Energy
Policy Act of 2005 (42 U.S.C. 15821(a)).
(5) STATE ENERGY PROGRAM.—The term ‘‘State Energy Pro-
gram’’ means the State Energy Program established pursuant
to part D of title III of the Energy Policy and Conservation
Act (42 U.S.C. 6321 through 6326).
PART 2—RESIDENTIAL EFFICIENCY AND
ELECTRIFICATION REBATES
SEC. 50121. HOME ENERGY PERFORMANCE-BASED, WHOLE-HOUSE
REBATES.
(a) APPROPRIATION.—
(1) IN GENERAL.—In addition to amounts otherwise avail-
able, there is appropriated to the Secretary for fiscal year
2022, out of any money in the Treasury not otherwise appro-
priated, $4,300,000,000, to remain available through September
30, 2031, to carry out a program to award grants to State
energy offices to develop and implement a HOMES rebate
program.
(2) ALLOCATION OF FUNDS.—
(A) IN GENERAL.—The Secretary shall reserve funds
made available under paragraph (1) for each State energy
office—
(i) in accordance with the allocation formula for
the State Energy Program in effect on January 1,
2022; and
(ii) to be distributed to a State energy office if
the application of the State energy office under sub-
section (b) is approved.
(B) ADDITIONAL FUNDS.—Not earlier than 2 years after
the date of enactment of this Act, any money reserved
under subparagraph (A) but not distributed under clause
(ii) of that subparagraph shall be redistributed to the State
energy offices operating a HOMES rebate program using
a grant received under this section in proportion to the
H. R. 5376—217
amount distributed to those State energy offices under
subparagraph (A)(ii).
(3) ADMINISTRATIVE EXPENSES.—Of the funds made avail-
able under paragraph (1), the Secretary shall use not more
than 3 percent for—
(A) administrative purposes; and
(B) providing technical assistance relating to activities
carried out under this section.
(b) APPLICATION.—A State energy office seeking a grant under
this section shall submit to the Secretary an application that
includes a plan to implement a HOMES rebate program, including
a plan—
(1) to use procedures, as approved by the Secretary, for
determining the reductions in home energy use resulting from
the implementation of a home energy efficiency retrofit that
are calibrated to historical energy usage for a home consistent
with BPI 2400, for purposes of modeled performance home
rebates;
(2) to use open-source advanced measurement and
verification software, as approved by the Secretary, for deter-
mining and documenting the monthly and hourly (if available)
weather-normalized energy use of a home before and after
the implementation of a home energy efficiency retrofit, for
purposes of measured performance home rebates;
(3) to value savings based on time, location, or greenhouse
gas emissions;
(4) for quality monitoring to ensure that each home energy
efficiency retrofit for which a rebate is provided is documented
in a certificate that—
(A) is provided by the contractor and certified by a
third party to the homeowner; and
(B) details the work performed, the equipment and
materials installed, and the projected energy savings or
energy generation to support accurate valuation of the
retrofit;
(5) to provide a contractor performing a home energy effi-
ciency retrofit or an aggregator who has the right to claim
a rebate $200 for each home located in a disadvantaged commu-
nity that receives a home energy efficiency retrofit for which
a rebate is provided under the program; and
(6) to ensure that a homeowner or aggregator does not
receive a rebate for the same upgrade through both a HOMES
rebate program and any other Federal grant or rebate program,
pursuant to subsection (c)(7).
(c) HOMES REBATE PROGRAM.—
(1) IN GENERAL.—A HOMES rebate program carried out
by a State energy office receiving a grant pursuant to this
section shall provide rebates to homeowners and aggregators
for whole-house energy saving retrofits begun on or after the
date of enactment of this Act and completed by not later than
September 30, 2031.
(2) AMOUNT OF REBATE.—Subject to paragraph (3), under
a HOMES rebate program, the amount of a rebate shall not
exceed—
(A) for individuals and aggregators carrying out energy
efficiency upgrades of single-family homes—
H. R. 5376—218
(i) in the case of a retrofit that achieves modeled
energy system savings of not less than 20 percent
but less than 35 percent, the lesser of—
(I) $2,000; and
(II) 50 percent of the project cost;
(ii) in the case of a retrofit that achieves modeled
energy system savings of not less than 35 percent,
the lesser of—
(I) $4,000; and
(II) 50 percent of the project cost; and
(iii) for measured energy savings, in the case of
a home or portfolio of homes that achieves energy
savings of not less than 15 percent—
(I) a payment rate per kilowatt hour saved,
or kilowatt hour-equivalent saved, equal to $2,000
for a 20 percent reduction of energy use for the
average home in the State; or
(II) 50 percent of the project cost;
(B) for multifamily building owners and aggregators
carrying out energy efficiency upgrades of multifamily
buildings—
(i) in the case of a retrofit that achieves modeled
energy system savings of not less than 20 percent
but less than 35 percent, $2,000 per dwelling unit,
with a maximum of $200,000 per multifamily building;
(ii) in the case of a retrofit that achieves modeled
energy system savings of not less than 35 percent,
$4,000 per dwelling unit, with a maximum of $400,000
per multifamily building; or
(iii) for measured energy savings, in the case of
a multifamily building or portfolio of multifamily
buildings that achieves energy savings of not less than
15 percent—
(I) a payment rate per kilowatt hour saved,
or kilowatt hour-equivalent saved, equal to $2,000
for a 20 percent reduction of energy use per
dwelling unit for the average multifamily building
in the State; or
(II) 50 percent of the project cost; and
(C) for individuals and aggregators carrying out energy
efficiency upgrades of a single-family home occupied by
a low- or moderate-income household or a multifamily
building not less than 50 percent of the dwelling units
of which are occupied by low- or moderate-income house-
holds—
(i) in the case of a retrofit that achieves modeled
energy system savings of not less than 20 percent
but less than 35 percent, the lesser of—
(I) $4,000 per single-family home or dwelling
unit; and
(II) 80 percent of the project cost;
(ii) in the case of a retrofit that achieves modeled
energy system savings of not less than 35 percent,
the lesser of—
(I) $8,000 per single-family home or dwelling
unit; and
(II) 80 percent of the project cost; and
H. R. 5376—219
(iii) for measured energy savings, in the case of
a single-family home, multifamily building, or portfolio
of single-family homes or multifamily buildings that
achieves energy savings of not less than 15 percent—
(I) a payment rate per kilowatt hour saved,
or kilowatt hour-equivalent saved, equal to $4,000
for a 20 percent reduction of energy use per single-
family home or dwelling unit, as applicable, for
the average single-family home or multifamily
building in the State; or
(II) 80 percent of the project cost.
(3) REBATES TO LOW- OR MODERATE-INCOME HOUSEHOLDS.—
On approval from the Secretary, notwithstanding paragraph
(2), a State energy office carrying out a HOMES rebate program
using a grant awarded pursuant to this section may increase
rebate amounts for low- or moderate-income households.
(4) USE OF FUNDS.—A State energy office that receives
a grant pursuant to this section may use not more than 20
percent of the grant amount for planning, administration, or
technical assistance related to a HOMES rebate program.
(5) DATA ACCESS GUIDELINES.—The Secretary shall develop
and publish guidelines for States relating to residential electric
and natural gas energy data sharing.
(6) EXEMPTION.—Activities carried out by a State energy
office using a grant awarded pursuant to this section shall
not be subject to the expenditure prohibitions and limitations
described in section 420.18 of title 10, Code of Federal Regula-
tions.
(7) PROHIBITION ON COMBINING REBATES.—A rebate pro-
vided by a State energy office under a HOMES rebate program
may not be combined with any other Federal grant or rebate,
including a rebate provided under a high-efficiency electric
home rebate program (as defined in section 50122(d)), for the
same single upgrade.
(d) DEFINITIONS.—In this section:
(1) DISADVANTAGED COMMUNITY.—The term ‘‘disadvantaged
community’’ means a community that the Secretary determines,
based on appropriate data, indices, and screening tools, is
economically, socially, or environmentally disadvantaged.
(2) HOMES REBATE PROGRAM.—The term ‘‘HOMES rebate
program’’ means a Home Owner Managing Energy Savings
rebate program established by a State energy office as part
of an approved State energy conservation plan under the State
Energy Program.
(3) LOW- OR MODERATE-INCOME HOUSEHOLD.—The term
‘‘low- or moderate-income household’’ means an individual or
family the total annual income of which is less than 80 percent
of the median income of the area in which the individual
or family resides, as reported by the Department of Housing
and Urban Development, including an individual or family
that has demonstrated eligibility for another Federal program
with income restrictions equal to or below 80 percent of area
median income.
SEC. 50122. HIGH-EFFICIENCY ELECTRIC HOME REBATE PROGRAM.
(a) APPROPRIATIONS.—
H. R. 5376—220
(1) FUNDS TO STATE ENERGY OFFICES AND INDIAN TRIBES.—
In addition to amounts otherwise available, there is appro-
priated to the Secretary for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, to carry out a
program—
(A) to award grants to State energy offices to develop
and implement a high-efficiency electric home rebate pro-
gram in accordance with subsection (c), $4,275,000,000,
to remain available through September 30, 2031; and
(B) to award grants to Indian Tribes to develop and
implement a high-efficiency electric home rebate program
in accordance with subsection (c), $225,000,000, to remain
available through September 30, 2031.
(2) ALLOCATION OF FUNDS.—
(A) STATE ENERGY OFFICES.—The Secretary shall
reserve funds made available under paragraph (1)(A) for
each State energy office—
(i) in accordance with the allocation formula for
the State Energy Program in effect on January 1,
2022; and
(ii) to be distributed to a State energy office if
the application of the State energy office under sub-
section (b) is approved.
(B) INDIAN TRIBES.—The Secretary shall reserve funds
made available under paragraph (1)(B)—
(i) in a manner determined appropriate by the
Secretary; and
(ii) to be distributed to an Indian Tribe if the
application of the Indian Tribe under subsection (b)
is approved.
(C) ADDITIONAL FUNDS.—Not earlier than 2 years after
the date of enactment of this Act, any money reserved
under—
(i) subparagraph (A) but not distributed under
clause (ii) of that subparagraph shall be redistributed
to the State energy offices operating a high-efficiency
electric home rebate program in proportion to the
amount distributed to those State energy offices under
that clause; and
(ii) subparagraph (B) but not distributed under
clause (ii) of that subparagraph shall be redistributed
to the Indian Tribes operating a high-efficiency electric
home rebate program in proportion to the amount
distributed to those Indian Tribes under that clause.
(3) ADMINISTRATIVE EXPENSES.—Of the funds made avail-
able under paragraph (1), the Secretary shall use not more
than 3 percent for—
(A) administrative purposes; and
(B) providing technical assistance relating to activities
carried out under this section.
(b) APPLICATION.—A State energy office or Indian Tribe seeking
a grant under the program shall submit to the Secretary an applica-
tion that includes a plan to implement a high-efficiency electric
home rebate program, including—
(1) a plan to verify the income eligibility of eligible entities
seeking a rebate for a qualified electrification project;
H. R. 5376—221
(2) a plan to allow rebates for qualified electrification
projects at the point of sale in a manner that ensures that
the income eligibility of an eligible entity seeking a rebate
may be verified at the point of sale;
(3) a plan to ensure that an eligible entity does not receive
a rebate for the same qualified electrification project through
both a high-efficiency electric home rebate program and any
other Federal grant or rebate program, pursuant to subsection
(c)(8); and
(4) any additional information that the Secretary may
require.
(c) HIGH-EFFICIENCY ELECTRIC HOME REBATE PROGRAM.—
(1) IN GENERAL.—Under the program, the Secretary shall
award grants to State energy offices and Indian Tribes to
establish a high-efficiency electric home rebate program under
which rebates shall be provided to eligible entities for qualified
electrification projects.
(2) GUIDELINES.—The Secretary shall prescribe guidelines
for high-efficiency electric home rebate programs, including
guidelines for providing point of sale rebates in a manner
consistent with the income eligibility requirements under this
section.
(3) AMOUNT OF REBATE.—
(A) APPLIANCE UPGRADES.—The amount of a rebate
provided under a high-efficiency electric home rebate pro-
gram for the purchase of an appliance under a qualified
electrification project shall be—
(i) not more than $1,750 for a heat pump water
heater;
(ii) not more than $8,000 for a heat pump for
space heating or cooling; and
(iii) not more than $840 for—
(I) an electric stove, cooktop, range, or oven;
or
(II) an electric heat pump clothes dryer.
(B) NONAPPLIANCE UPGRADES.—The amount of a rebate
provided under a high-efficiency electric home rebate pro-
gram for the purchase of a nonappliance upgrade under
a qualified electrification project shall be—
(i) not more than $4,000 for an electric load service
center upgrade;
(ii) not more than $1,600 for insulation, air sealing,
and ventilation; and
(iii) not more than $2,500 for electric wiring.
(C) MAXIMUM REBATE.—An eligible entity receiving
multiple rebates under this section may receive not more
than a total of $14,000 in rebates.
(4) LIMITATIONS.—A rebate provided using funding under
this section shall not exceed—
(A) in the case of an eligible entity described in sub-
section (d)(1)(A)—
(i) 50 percent of the cost of the qualified electrifica-
tion project for a household the annual income of which
is not less than 80 percent and not greater than 150
percent of the area median income; and
(ii) 100 percent of the cost of the qualified elec-
trification project for a household the annual income
H. R. 5376—222
of which is less than 80 percent of the area median
income;
(B) in the case of an eligible entity described in sub-
section (d)(1)(B)—
(i) 50 percent of the cost of the qualified electrifica-
tion project for a multifamily building not less than
50 percent of the residents of which are households
the annual income of which is not less than 80 percent
and not greater than 150 percent of the area median
income; and
(ii) 100 percent of the cost of the qualified elec-
trification project for a multifamily building not less
than 50 percent of the residents of which are house-
holds the annual income of which is less than 80
percent of the area median income; or
(C) in the case of an eligible entity described in sub-
section (d)(1)(C)—
(i) 50 percent of the cost of the qualified electrifica-
tion project for a household—
(I) on behalf of which the eligible entity is
working; and
(II) the annual income of which is not less
than 80 percent and not greater than 150 percent
of the area median income; and
(ii) 100 percent of the cost of the qualified elec-
trification project for a household—
(I) on behalf of which the eligible entity is
working; and
(II) the annual income of which is less than
80 percent of the area median income.
(5) AMOUNT FOR INSTALLATION OF UPGRADES.—
(A) IN GENERAL.—In the case of an eligible entity
described in subsection (d)(1)(C) that receives a rebate
under the program and performs the installation of the
applicable qualified electrification project, a State energy
office or Indian Tribe shall provide to that eligible entity,
in addition to the rebate, an amount that—
(i) does not exceed $500; and
(ii) is commensurate with the scale of the upgrades
installed as part of the qualified electrification project,
as determined by the Secretary.
(B) TREATMENT.—An amount received under subpara-
graph (A) by an eligible entity described in that subpara-
graph shall not be subject to the requirement under para-
graph (6).
(6) REQUIREMENT.—An eligible entity described in subpara-
graph (C) of subsection (d)(1) shall discount the amount of
a rebate received for a qualified electrification project from
any amount charged by that eligible entity to the eligible entity
described in subparagraph (A) or (B) of that subsection on
behalf of which the qualified electrification project is carried
out.
(7) EXEMPTION.—Activities carried out by a State energy
office using a grant provided under the program shall not
be subject to the expenditure prohibitions and limitations
described in section 420.18 of title 10, Code of Federal Regula-
tions.
H. R. 5376—223
(8) PROHIBITION ON COMBINING REBATES.—A rebate pro-
vided by a State energy office or Indian Tribe under a high-
efficiency electric home rebate program may not be combined
with any other Federal grant or rebate, including a rebate
provided under a HOMES rebate program (as defined in section
50121(d)), for the same qualified electrification project.
(9) ADMINISTRATIVE COSTS.—A State energy office or Indian
Tribe that receives a grant under the program shall use not
more than 20 percent of the grant amount for planning,
administration, or technical assistance relating to a high-effi-
ciency electric home rebate program.
(d) DEFINITIONS.—In this section:
(1) ELIGIBLE ENTITY.—The term ‘‘eligible entity’’ means—
(A) a low- or moderate-income household;
(B) an individual or entity that owns a multifamily
building not less than 50 percent of the residents of which
are low- or moderate-income households; and
(C) a governmental, commercial, or nonprofit entity,
as determined by the Secretary, carrying out a qualified
electrification project on behalf of an entity described in
subparagraph (A) or (B).
(2) HIGH-EFFICIENCY ELECTRIC HOME REBATE PROGRAM.—
The term ‘‘high-efficiency electric home rebate program’’ means
a rebate program carried out by a State energy office or Indian
Tribe pursuant to subsection (c) using a grant received under
the program.
(3) INDIAN TRIBE.—The term ‘‘Indian Tribe’’ has the
meaning given the term in section 4 of the Indian Self-Deter-
mination and Education Assistance Act (25 U.S.C. 5304).
(4) LOW- OR MODERATE-INCOME HOUSEHOLD.—The term
‘‘low- or moderate-income household’’ means an individual or
family the total annual income of which is less than 150 percent
of the median income of the area in which the individual
or family resides, as reported by the Department of Housing
and Urban Development, including an individual or family
that has demonstrated eligibility for another Federal program
with income restrictions equal to or below 150 percent of area
median income.
(5) PROGRAM.—The term ‘‘program’’ means the program
carried out by the Secretary under subsection (a)(1).
(6) QUALIFIED ELECTRIFICATION PROJECT.—
(A) IN GENERAL.—The term ‘‘qualified electrification
project’’ means a project that—
(i) includes the purchase and installation of—
(I) an electric heat pump water heater;
(II) an electric heat pump for space heating
and cooling;
(III) an electric stove, cooktop, range, or oven;
(IV) an electric heat pump clothes dryer;
(V) an electric load service center;
(VI) insulation;
(VII) air sealing and materials to improve ven-
tilation; or
(VIII) electric wiring;
(ii) with respect to any appliance described in
clause (i), the purchase of which is carried out—
(I) as part of new construction;
H. R. 5376—224
(II) to replace a nonelectric appliance; or
(III) as a first-time purchase with respect to
that appliance; and
(iii) is carried out at, or relating to, a single-family
home or multifamily building, as applicable and
defined by the Secretary.
(B) EXCLUSIONS.—The term ‘‘qualified electrification
project’’ does not include any project with respect to which
the appliance, system, equipment, infrastructure, compo-
nent, or other item described in subclauses (I) through
(VIII) of subparagraph (A)(i) is not certified under the
Energy Star program established by section 324A of the
Energy Policy and Conservation Act (42 U.S.C. 6294a),
if applicable.
SEC. 50123. STATE-BASED HOME ENERGY EFFICIENCY CONTRACTOR
TRAINING GRANTS.
(a) APPROPRIATION.—In addition to amounts otherwise avail-
able, there is appropriated to the Secretary for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated,
$200,000,000, to remain available through September 30, 2031,
to carry out a program to provide financial assistance to States
to develop and implement a State program described in section
362(d)(13) of the Energy Policy and Conservation Act (42 U.S.C.
6322(d)(13)), which shall provide training and education to contrac-
tors involved in the installation of home energy efficiency and
electrification improvements, including improvements eligible for
rebates under a HOMES rebate program (as defined in section
50121(d)) or a high-efficiency electric home rebate program (as
defined in section 50122(d)), as part of an approved State energy
conservation plan under the State Energy Program.
(b) USE OF FUNDS.—A State may use amounts received under
subsection (a)—
(1) to reduce the cost of training contractor employees;
(2) to provide testing and certification of contractors trained
and educated under a State program developed and imple-
mented pursuant to subsection (a); and
(3) to partner with nonprofit organizations to develop and
implement a State program pursuant to subsection (a).
(c) ADMINISTRATIVE EXPENSES.—Of the amounts received by
a State under subsection (a), a State shall use not more than
10 percent for administrative expenses associated with developing
and implementing a State program pursuant to that subsection.
PART 3—BUILDING EFFICIENCY AND
RESILIENCE
SEC. 50131. ASSISTANCE FOR LATEST AND ZERO BUILDING ENERGY
CODE ADOPTION.
(a) APPROPRIATION.—In addition to amounts otherwise avail-
able, there is appropriated to the Secretary for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated—
(1) $330,000,000, to remain available through September
30, 2029, to carry out activities under part D of title III of
the Energy Policy and Conservation Act (42 U.S.C. 6321
through 6326) in accordance with subsection (b); and
H. R. 5376—225
(2) $670,000,000, to remain available through September
30, 2029, to carry out activities under part D of title III of
the Energy Policy and Conservation Act (42 U.S.C. 6321
through 6326) in accordance with subsection (c).
(b) LATEST BUILDING ENERGY CODE.—The Secretary shall use
funds made available under subsection (a)(1) for grants to assist
States, and units of local government that have authority to adopt
building codes—
(1) to adopt—
(A) a building energy code (or codes) for residential
buildings that meets or exceeds the 2021 International
Energy Conservation Code, or achieves equivalent or
greater energy savings;
(B) a building energy code (or codes) for commercial
buildings that meets or exceeds the ANSI/ASHRAE/IES
Standard 90.1–2019, or achieves equivalent or greater
energy savings; or
(C) any combination of building energy codes described
in subparagraph (A) or (B); and
(2) to implement a plan for the jurisdiction to achieve
full compliance with any building energy code adopted under
paragraph (1) in new and renovated residential or commercial
buildings, as applicable, which plan shall include active training
and enforcement programs and measurement of the rate of
compliance each year.
(c) ZERO ENERGY CODE.—The Secretary shall use funds made
available under subsection (a)(2) for grants to assist States, and
units of local government that have authority to adopt building
codes—
(1) to adopt a building energy code (or codes) for residential
and commercial buildings that meets or exceeds the zero energy
provisions in the 2021 International Energy Conservation Code
or an equivalent stretch code; and
(2) to implement a plan for the jurisdiction to achieve
full compliance with any building energy code adopted under
paragraph (1) in new and renovated residential and commercial
buildings, which plan shall include active training and enforce-
ment programs and measurement of the rate of compliance
each year.
(d) STATE MATCH.—The State cost share requirement under
the item relating to ‘‘Department of Energy—Energy Conservation’’
in title II of the Department of the Interior and Related Agencies
Appropriations Act, 1985 (42 U.S.C. 6323a; 98 Stat. 1861), shall
not apply to assistance provided under this section.
(e) ADMINISTRATIVE COSTS.—Of the amounts made available
under this section, the Secretary shall reserve not more than 5
percent for administrative costs necessary to carry out this section.
PART 4—DOE LOAN AND GRANT PROGRAMS
SEC. 50141. FUNDING FOR DEPARTMENT OF ENERGY LOAN PROGRAMS
OFFICE.
(a) COMMITMENT AUTHORITY.—In addition to commitment
authority otherwise available and previously provided, the Secretary
may make commitments to guarantee loans for eligible projects
under section 1703 of the Energy Policy Act of 2005 (42 U.S.C.
H. R. 5376—226
16513), up to a total principal amount of $40,000,000,000, to remain
available through September 30, 2026.
(b) APPROPRIATION.—In addition to amounts otherwise available
and previously provided, there is appropriated to the Secretary
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $3,600,000,000, to remain available through Sep-
tember 30, 2026, for the costs of guarantees made under section
1703 of the Energy Policy Act of 2005 (42 U.S.C. 16513), using
the loan guarantee authority provided under subsection (a) of this
section.
(c) ADMINISTRATIVE EXPENSES.—Of the amount made available
under subsection (b), the Secretary shall reserve not more than
3 percent for administrative expenses to carry out title XVII of
the Energy Policy Act of 2005 and for carrying out section 1702(h)(3)
of such Act (42 U.S.C. 16512(h)(3)).
(d) LIMITATIONS.—
(1) CERTIFICATION.—None of the amounts made available
under this section for loan guarantees shall be available for
any project unless the President has certified in advance in
writing that the loan guarantee and the project comply with
the provisions under this section.
(2) DENIAL OF DOUBLE BENEFIT.—Except as provided in
paragraph (3), none of the amounts made available under this
section for loan guarantees shall be available for commitments
to guarantee loans for any projects under which funds, per-
sonnel, or property (tangible or intangible) of any Federal
agency, instrumentality, personnel, or affiliated entity are
expected to be used (directly or indirectly) through acquisitions,
contracts, demonstrations, exchanges, grants, incentives, leases,
procurements, sales, other transaction authority, or other
arrangements to support the project or to obtain goods or
services from the project.
(3) EXCEPTION.—Paragraph (2) shall not preclude the use
of the loan guarantee authority provided under this section
for commitments to guarantee loans for—
(A) projects benefitting from otherwise allowable Fed-
eral tax benefits;
(B) projects benefitting from being located on Federal
land pursuant to a lease or right-of-way agreement for
which all consideration for all uses is—
(i) paid exclusively in cash;
(ii) deposited in the Treasury as offsetting receipts;
and
(iii) equal to the fair market value;
(C) projects benefitting from the Federal insurance pro-
gram under section 170 of the Atomic Energy Act of 1954
(42 U.S.C. 2210); or
(D) electric generation projects using transmission
facilities owned or operated by a Federal Power Marketing
Administration or the Tennessee Valley Authority that
have been authorized, approved, and financed independent
of the project receiving the guarantee.
(e) GUARANTEE.—Section 1701(4)(A) of the Energy Policy Act
of 2005 (42 U.S.C. 16511(4)(A)) is amended by inserting ‘‘, except
that a loan guarantee may guarantee any debt obligation of a
non-Federal borrower to any Eligible Lender (as defined in section
H. R. 5376—227
609.2 of title 10, Code of Federal Regulations)’’ before the period
at the end.
(f) SOURCE OF PAYMENTS.—Section 1702(b) of the Energy Policy
Act of 2005 (42 U.S.C. 16512(b)(2)) is amended by adding at the
end the following:
‘‘(3) SOURCE OF PAYMENTS.—The source of a payment
received from a borrower under subparagraph (A) or (B) of
paragraph (2) may not be a loan or other debt obligation that
is made or guaranteed by the Federal Government.’’.
SEC. 50142. ADVANCED TECHNOLOGY VEHICLE MANUFACTURING.
(a) APPROPRIATION.—In addition to amounts otherwise avail-
able, there is appropriated to the Secretary for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated,
$3,000,000,000, to remain available through September 30, 2028,
for the costs of providing direct loans under section 136(d) of the
Energy Independence and Security Act of 2007 (42 U.S.C. 17013(d)):
Provided, That funds appropriated by this section may be used
for the costs of providing direct loans for reequipping, expanding,
or establishing a manufacturing facility in the United States to
produce, or for engineering integration performed in the United
States of, advanced technology vehicles described in subparagraph
(C), (D), (E), or (F) of section 136(a)(1) of such Act (42 U.S.C.
17013(a)(1)) only if such advanced technology vehicles emit, under
any possible operational mode or condition, low or zero exhaust
emissions of greenhouse gases.
(b) ADMINISTRATIVE COSTS.—The Secretary shall reserve not
more than $25,000,000 of amounts made available under subsection
(a) for administrative costs of providing loans as described in sub-
section (a).
(c) ELIMINATION OF LOAN PROGRAM CAP.—Section 136(d)(1)
of the Energy Independence and Security Act of 2007 (42 U.S.C.
17013(d)(1)) is amended by striking ‘‘a total of not more than
$25,000,000,000 in’’.
SEC. 50143. DOMESTIC MANUFACTURING CONVERSION GRANTS.
(a) APPROPRIATION.—In addition to amounts otherwise avail-
able, there is appropriated to the Secretary for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated,
$2,000,000,000, to remain available through September 30, 2031,
to provide grants for domestic production of efficient hybrid, plug-
in electric hybrid, plug-in electric drive, and hydrogen fuel cell
electric vehicles, in accordance with section 712 of the Energy
Policy Act of 2005 (42 U.S.C. 16062).
(b) COST SHARE.—The Secretary shall require a recipient of
a grant provided under subsection (a) to provide not less than
50 percent of the cost of the project carried out using the grant.
(c) ADMINISTRATIVE COSTS.—The Secretary shall reserve not
more than 3 percent of amounts made available under subsection
(a) for administrative costs of making grants described in such
subsection (a) pursuant to section 712 of the Energy Policy Act
of 2005 (42 U.S.C. 16062).
SEC. 50144. ENERGY INFRASTRUCTURE REINVESTMENT FINANCING.
(a) APPROPRIATION.—In addition to amounts otherwise avail-
able, there is appropriated to the Secretary for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated,
$5,000,000,000, to remain available through September 30, 2026,
H. R. 5376—228
to carry out activities under section 1706 of the Energy Policy
Act of 2005.
(b) COMMITMENT AUTHORITY.—The Secretary may make,
through September 30, 2026, commitments to guarantee loans for
projects under section 1706 of the Energy Policy Act of 2005 the
total principal amount of which is not greater than
$250,000,000,000, subject to the limitations that apply to loan
guarantees under section 50141(d).
(c) ENERGY INFRASTRUCTURE REINVESTMENT FINANCING.—Title
XVII of the Energy Policy Act of 2005 is amended by inserting
after section 1705 (42 U.S.C. 16516) the following:
‘‘SEC. 1706. ENERGY INFRASTRUCTURE REINVESTMENT FINANCING.
‘‘(a) IN GENERAL.—Notwithstanding section 1703, the Secretary
may make guarantees, including refinancing, under this section
only for projects that—
‘‘(1) retool, repower, repurpose, or replace energy infrastruc-
ture that has ceased operations; or
‘‘(2) enable operating energy infrastructure to avoid, reduce,
utilize, or sequester air pollutants or anthropogenic emissions
of greenhouse gases.
‘‘(b) INCLUSION.—A project under subsection (a) may include
the remediation of environmental damage associated with energy
infrastructure.
‘‘(c) REQUIREMENT.—A project under subsection (a)(1) that
involves electricity generation through the use of fossil fuels shall
be required to have controls or technologies to avoid, reduce, utilize,
or sequester air pollutants and anthropogenic emissions of green-
house gases.
‘‘(d) APPLICATION.—To apply for a guarantee under this section,
an applicant shall submit to the Secretary an application at such
time, in such manner, and containing such information as the
Secretary may require, including—
‘‘(1) a detailed plan describing the proposed project;
‘‘(2) an analysis of how the proposed project will engage
with and affect associated communities; and
‘‘(3) in the case of an applicant that is an electric utility,
an assurance that the electric utility shall pass on any financial
benefit from the guarantee made under this section to the
customers of, or associated communities served by, the electric
utility.
‘‘(e) TERM.—Notwithstanding section 1702(f), the term of an
obligation shall require full repayment over a period not to exceed
30 years.
‘‘(f) DEFINITION OF ENERGY INFRASTRUCTURE.—In this section,
the term ‘energy infrastructure’ means a facility, and associated
equipment, used for—
‘‘(1) the generation or transmission of electric energy; or
‘‘(2) the production, processing, and delivery of fossil fuels,
fuels derived from petroleum, or petrochemical feedstocks.’’.
(d) CONFORMING AMENDMENT.—Section 1702(o)(3) of the Energy
Policy Act of 2005 (42 U.S.C. 16512(o)(3)) is amended by inserting
‘‘and projects described in section 1706(a)’’ before the period at
the end.
SEC. 50145. TRIBAL ENERGY LOAN GUARANTEE PROGRAM.
(a) APPROPRIATION.—In addition to amounts otherwise avail-
able, there is appropriated to the Secretary for fiscal year 2022,
H. R. 5376—229
out of any money in the Treasury not otherwise appropriated,
$75,000,000, to remain available through September 30, 2028, to
carry out section 2602(c) of the Energy Policy Act of 1992 (25
U.S.C. 3502(c)), subject to the limitations that apply to loan guaran-
tees under section 50141(d).
(b) DEPARTMENT OF ENERGY TRIBAL ENERGY LOAN GUARANTEE
PROGRAM.—Section 2602(c) of the Energy Policy Act of 1992 (25
U.S.C. 3502(c)) is amended—
(1) in paragraph (1), by striking ‘‘) for an amount equal
to not more than 90 percent of’’ and inserting ‘‘, except that
a loan guarantee may guarantee any debt obligation of a non-
Federal borrower to any Eligible Lender (as defined in section
609.2 of title 10, Code of Federal Regulations)) for’’; and
(2) in paragraph (4), by striking ‘‘$2,000,000,000’’ and
inserting ‘‘$20,000,000,000’’.
PART 5—ELECTRIC TRANSMISSION
SEC. 50151. TRANSMISSION FACILITY FINANCING.
(a) APPROPRIATION.—In addition to amounts otherwise avail-
able, there is appropriated to the Secretary for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated,
$2,000,000,000, to remain available through September 30, 2030,
to carry out this section: Provided, That the Secretary shall not
enter into any loan agreement pursuant to this section that could
result in disbursements after September 30, 2031.
(b) USE OF FUNDS.—The Secretary shall use the amounts made
available by subsection (a) to carry out a program to pay the
costs of direct loans to non-Federal borrowers, subject to the limita-
tions that apply to loan guarantees under section 50141(d) and
under such terms and conditions as the Secretary determines to
be appropriate, for the construction or modification of electric trans-
mission facilities designated by the Secretary to be necessary in
the national interest under section 216(a) of the Federal Power
Act (16 U.S.C. 824p(a)).
(c) LOANS.—A direct loan provided under this section—
(1) shall have a term that does not exceed the lesser of—
(A) 90 percent of the projected useful life, in years,
of the eligible transmission facility; and
(B) 30 years;
(2) shall not exceed 80 percent of the project costs; and
(3) shall, on first issuance, be subject to the condition
that the direct loan is not subordinate to other financing.
(d) INTEREST RATES.—A direct loan provided under this section
shall bear interest at a rate determined by the Secretary, taking
into consideration market yields on outstanding marketable obliga-
tions of the United States of comparable maturities as of the date
on which the direct loan is made.
(e) DEFINITION OF DIRECT LOAN.—In this section, the term
‘‘direct loan’’ has the meaning given the term in section 502 of
the Federal Credit Reform Act of 1990 (2 U.S.C. 661a).
SEC. 50152. GRANTS TO FACILITATE THE SITING OF INTERSTATE ELEC-
TRICITY TRANSMISSION LINES.
(a) APPROPRIATION.—In addition to amounts otherwise avail-
able, there is appropriated to the Secretary for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated,
H. R. 5376—230
$760,000,000, to remain available through September 30, 2029,
for making grants in accordance with this section and for adminis-
trative expenses associated with carrying out this section.
(b) USE OF FUNDS.—
(1) IN GENERAL.—The Secretary may make a grant under
this section to a siting authority for, with respect to a covered
transmission project, any of the following activities:
(A) Studies and analyses of the impacts of the covered
transmission project.
(B) Examination of up to 3 alternate siting corridors
within which the covered transmission project feasibly
could be sited.
(C) Participation by the siting authority in regulatory
proceedings or negotiations in another jurisdiction, or under
the auspices of a Transmission Organization (as defined
in section 3 of the Federal Power Act (16 U.S.C. 796))
that is also considering the siting or permitting of the
covered transmission project.
(D) Participation by the siting authority in regulatory
proceedings at the Federal Energy Regulatory Commission
or a State regulatory commission for determining applicable
rates and cost allocation for the covered transmission
project.
(E) Other measures and actions that may improve
the chances of, and shorten the time required for, approval
by the siting authority of the application relating to the
siting or permitting of the covered transmission project,
as the Secretary determines appropriate.
(2) ECONOMIC DEVELOPMENT.—The Secretary may make
a grant under this section to a siting authority, or other State,
local, or Tribal governmental entity, for economic development
activities for communities that may be affected by the construc-
tion and operation of a covered transmission project, provided
that the Secretary shall not enter into any grant agreement
pursuant to this section that could result in any outlays after
September 30, 2031.
(c) CONDITIONS.—
(1) FINAL DECISION ON APPLICATION.—In order to receive
a grant for an activity described in subsection (b)(1), the Sec-
retary shall require a siting authority to agree, in writing,
to reach a final decision on the application relating to the
siting or permitting of the applicable covered transmission
project not later than 2 years after the date on which such
grant is provided, unless the Secretary authorizes an extension
for good cause.
(2) FEDERAL SHARE.—The Federal share of the cost of an
activity described in subparagraph (C) or (D) of subsection
(b)(1) shall not exceed 50 percent.
(3) ECONOMIC DEVELOPMENT.—The Secretary may only dis-
burse grant funds for economic development activities under
subsection (b)(2)—
(A) to a siting authority upon approval by the siting
authority of the applicable covered transmission project;
and
(B) to any other State, local, or Tribal governmental
entity upon commencement of construction of the applicable
H. R. 5376—231
covered transmission project in the area under the jurisdic-
tion of the entity.
(d) RETURNING FUNDS.—If a siting authority that receives a
grant for an activity described in subsection (b)(1) fails to use
all grant funds within 2 years of receipt, the siting authority shall
return to the Secretary any such unused funds.
(e) DEFINITIONS.—In this section:
(1) COVERED TRANSMISSION PROJECT.—The term ‘‘covered
transmission project’’ means a high-voltage interstate or off-
shore electricity transmission line—
(A) that is proposed to be constructed and to operate—
(i) at a minimum of 275 kilovolts of either alter-
nating-current or direct-current electric energy by an
entity; or
(ii) offshore and at a minimum of 200 kilovolts
of either alternating-current or direct-current electric
energy by an entity; and
(B) for which such entity has applied, or informed
a siting authority of such entity’s intent to apply, for regu-
latory approval.
(2) SITING AUTHORITY.—The term ‘‘siting authority’’ means
a State, local, or Tribal governmental entity with authority
to make a final determination regarding the siting, permitting,
or regulatory status of a covered transmission project that
is proposed to be located in an area under the jurisdiction
of the entity.
SEC. 50153. INTERREGIONAL AND OFFSHORE WIND ELECTRICITY
TRANSMISSION PLANNING, MODELING, AND ANALYSIS.
(a) APPROPRIATION.—In addition to amounts otherwise avail-
able, there is appropriated to the Secretary for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated,
$100,000,000, to remain available through September 30, 2031,
to carry out this section.
(b) USE OF FUNDS.—The Secretary shall use amounts made
available under subsection (a)—
(1) to pay expenses associated with convening relevant
stakeholders to address the development of interregional elec-
tricity transmission and transmission of electricity that is gen-
erated by offshore wind; and
(2) to conduct planning, modeling, and analysis regarding
interregional electricity transmission and transmission of elec-
tricity that is generated by offshore wind, taking into account
the local, regional, and national economic, reliability, resilience,
security, public policy, and environmental benefits of inter-
regional electricity transmission and transmission of electricity
that is generated by offshore wind, including planning, mod-
eling, and analysis, as the Secretary determines appropriate,
pertaining to—
(A) clean energy integration into the electric grid,
including the identification of renewable energy zones;
(B) the effects of changes in weather due to climate
change on the reliability and resilience of the electric grid;
(C) cost allocation methodologies that facilitate the
expansion of the bulk power system;
H. R. 5376—232
(D) the benefits of coordination between generator
interconnection processes and transmission planning proc-
esses;
(E) the effect of increased electrification on the electric
grid;
(F) power flow modeling;
(G) the benefits of increased interconnections or
interties between or among the Western Interconnection,
the Eastern Interconnection, the Electric Reliability
Council of Texas, and other interconnections, as applicable;
(H) the cooptimization of transmission and generation,
including variable energy resources, energy storage, and
demand-side management;
(I) the opportunities for use of nontransmission alter-
natives, energy storage, and grid-enhancing technologies;
(J) economic development opportunities for commu-
nities arising from development of interregional electricity
transmission and transmission of electricity that is gen-
erated by offshore wind;
(K) evaluation of existing rights-of-way and the need
for additional transmission corridors; and
(L) a planned national transmission grid, which would
include a networked transmission system to optimize the
existing grid for interconnection of offshore wind farms.
PART 6—INDUSTRIAL
SEC. 50161. ADVANCED INDUSTRIAL FACILITIES DEPLOYMENT PRO-
GRAM.
(a) OFFICE OF CLEAN ENERGY DEMONSTRATIONS.—In addition
to amounts otherwise available, there is appropriated to the Sec-
retary, acting through the Office of Clean Energy Demonstrations,
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $5,812,000,000, to remain available through Sep-
tember 30, 2026, to carry out this section.
(b) FINANCIAL ASSISTANCE.—The Secretary shall use funds
appropriated by subsection (a) to provide financial assistance, on
a competitive basis, to eligible entities to carry out projects for—
(1) the purchase and installation, or implementation, of
advanced industrial technology at an eligible facility;
(2) retrofits, upgrades to, or operational improvements at
an eligible facility to install or implement advanced industrial
technology; or
(3) engineering studies and other work needed to prepare
an eligible facility for activities described in paragraph (1)
or (2).
(c) APPLICATION.—To be eligible to receive financial assistance
under subsection (b), an eligible entity shall submit to the Secretary
an application at such time, in such manner, and containing such
information as the Secretary may require, including the expected
greenhouse gas emissions reductions to be achieved by carrying
out the project.
(d) PRIORITY.—In providing financial assistance under sub-
section (b), the Secretary shall give priority consideration to projects
on the basis of, as determined by the Secretary—
(1) the expected greenhouse gas emissions reductions to
be achieved by carrying out the project;
H. R. 5376—233
(2) the extent to which the project would provide the
greatest benefit for the greatest number of people within the
area in which the eligible facility is located; and
(3) whether the eligible entity participates or would partici-
pate in a partnership with purchasers of the output of the
eligible facility.
(e) COST SHARE.—The Secretary shall require an eligible entity
to provide not less than 50 percent of the cost of a project carried
out pursuant to this section.
(f) ADMINISTRATIVE COSTS.—The Secretary shall reserve not
more than $300,000,000 of amounts made available under sub-
section (a) for administrative costs of carrying out this section.
(g) DEFINITIONS.—In this section:
(1) ADVANCED INDUSTRIAL TECHNOLOGY.—The term
‘‘advanced industrial technology’’ means a technology directly
involved in an industrial process, as described in any of para-
graphs (1) through (6) of section 454(c) of the Energy Independ-
ence and Security Act of 2007 (42 U.S.C. 17113(c)), and designed
to accelerate greenhouse gas emissions reduction progress to
net-zero at an eligible facility, as determined by the Secretary.
(2) ELIGIBLE ENTITY.—The term ‘‘eligible entity’’ means the
owner or operator of an eligible facility.
(3) ELIGIBLE FACILITY.—The term ‘‘eligible facility’’ means
a domestic, non-Federal, nonpower industrial or manufacturing
facility engaged in energy-intensive industrial processes,
including production processes for iron, steel, steel mill prod-
ucts, aluminum, cement, concrete, glass, pulp, paper, industrial
ceramics, chemicals, and other energy intensive industrial proc-
esses, as determined by the Secretary.
(4) FINANCIAL ASSISTANCE.—The term ‘‘financial assistance’’
means a grant, rebate, direct loan, or cooperative agreement.
PART 7—OTHER ENERGY MATTERS
SEC. 50171. DEPARTMENT OF ENERGY OVERSIGHT.
In addition to amounts otherwise available, there is appro-
priated to the Secretary for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $20,000,000, to remain
available through September 30, 2031, for oversight by the Depart-
ment of Energy Office of Inspector General of the Department
of Energy activities for which funding is appropriated in this sub-
title.
SEC. 50172. NATIONAL LABORATORY INFRASTRUCTURE.
(a) OFFICE OF SCIENCE.—In addition to amounts otherwise
available, there is appropriated to the Secretary, acting through
the Director of the Office of Science, for fiscal year 2022, out
of any money in the Treasury not otherwise appropriated, to remain
available through September 30, 2027—
(1) $133,240,000 to carry out activities for science labora-
tory infrastructure projects;
(2) $303,656,000 to carry out activities for high energy
physics construction and major items of equipment projects;
(3) $280,000,000 to carry out activities for fusion energy
science construction and major items of equipment projects;
(4) $217,000,000 to carry out activities for nuclear physics
construction and major items of equipment projects;
H. R. 5376—234
(5) $163,791,000 to carry out activities for advanced sci-
entific computing research facilities;
(6) $294,500,000 to carry out activities for basic energy
sciences projects; and
(7) $157,813,000 to carry out activities for isotope research
and development facilities.
(b) OFFICE OF FOSSIL ENERGY AND CARBON MANAGEMENT.—
In addition to amounts otherwise available, there is appropriated
to the Secretary for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $150,000,000, to remain avail-
able through September 30, 2027, to carry out activities for infra-
structure and general plant projects carried out by the Office of
Fossil Energy and Carbon Management.
(c) OFFICE OF NUCLEAR ENERGY.—In addition to amounts other-
wise available, there is appropriated to the Secretary for fiscal
year 2022, out of any money in the Treasury not otherwise appro-
priated, $150,000,000, to remain available through September 30,
2027, to carry out activities for infrastructure and general plant
projects carried out by the Office of Nuclear Energy.
(d) OFFICE OF ENERGY EFFICIENCY AND RENEWABLE ENERGY.—
In addition to amounts otherwise available, there is appropriated
to the Secretary for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $150,000,000, to remain avail-
able through September 30, 2027, to carry out activities for infra-
structure and general plant projects carried out by the Office of
Energy Efficiency and Renewable Energy.
SEC. 50173. AVAILABILITY OF HIGH-ASSAY LOW-ENRICHED URANIUM.
(a) APPROPRIATIONS.—In addition to amounts otherwise avail-
able, there is appropriated to the Secretary of for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated,
to remain available through September 30, 2026—
(1) $100,000,000 to carry out the program elements
described in subparagraphs (A) through (C) of section 2001(a)(2)
of the Energy Act of 2020 (42 U.S.C. 16281(a)(2));
(2) $500,000,000 to carry out the program elements
described in subparagraphs (D) through (H) of that section;
and
(3) $100,000,000 to carry out activities to support the avail-
ability of high-assay low-enriched uranium for civilian domestic
research, development, demonstration, and commercial use
under section 2001 of the Energy Act of 2020 (42 U.S.C. 16281).
(b) COMPETITIVE PROCEDURES.—To the maximum extent prac-
ticable, the Department of Energy shall, in a manner consistent
with section 989 of the Energy Policy Act of 2005 (42 U.S.C. 16353),
use a competitive, merit-based review process in carrying out
research, development, demonstration, and deployment activities
under section 2001 of the Energy Act of 2020 (42 U.S.C. 16281).
(c) ADMINISTRATIVE EXPENSES.—The Secretary may use not
more than 3 percent of the amounts appropriated by subsection
(a) for administrative purposes.
H. R. 5376—235
Subtitle B—Natural Resources
PART 1—GENERAL PROVISIONS
SEC. 50211. DEFINITIONS.
In this subtitle:
(1) SECRETARY.—The term ‘‘Secretary’’ means the Secretary
of the Interior.
(2) UNITED STATES INSULAR AREAS.—The term ‘‘United
States Insular Areas’’ means American Samoa, the Common-
wealth of the Northern Mariana Islands, Guam, the Common-
wealth of Puerto Rico, and the United States Virgin Islands.
PART 2—PUBLIC LANDS
SEC. 50221. NATIONAL PARKS AND PUBLIC LANDS CONSERVATION AND
RESILIENCE.
In addition to amounts otherwise available, there is appro-
priated to the Secretary for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $250,000,000, to remain
available through September 30, 2031, to carry out projects for
the conservation, protection, and resiliency of lands and resources
administered by the National Park Service and Bureau of Land
Management. None of the funds provided under this section shall
be subject to cost-share or matching requirements.
SEC. 50222. NATIONAL PARKS AND PUBLIC LANDS CONSERVATION AND
ECOSYSTEM RESTORATION.
In addition to amounts otherwise available, there is appro-
priated to the Secretary for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $250,000,000, to remain
available through September 30, 2031, to carry out conservation,
ecosystem and habitat restoration projects on lands administered
by the National Park Service and Bureau of Land Management.
None of the funds provided under this section shall be subject
to cost-share or matching requirements.
SEC. 50223. NATIONAL PARK SERVICE EMPLOYEES.
In addition to amounts otherwise available, there is appro-
priated to the Secretary for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $500,000,000, to remain
available through September 30, 2030, to hire employees to serve
in units of the National Park System or national historic or national
scenic trails administered by the National Park Service.
SEC. 50224. NATIONAL PARK SYSTEM DEFERRED MAINTENANCE.
In addition to amounts otherwise available, there is appro-
priated to the Secretary for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $200,000,000, to remain
available through September 30, 2026, to carry out priority deferred
maintenance projects, through direct expenditures or transfers,
within the boundaries of the National Park System.
H. R. 5376—236
PART 3—DROUGHT RESPONSE AND
PREPAREDNESS
SEC. 50231. BUREAU OF RECLAMATION DOMESTIC WATER SUPPLY
PROJECTS.
In addition to amounts otherwise available, there is appro-
priated to the Secretary, acting through the Commissioner of Rec-
lamation, for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, $550,000,000, to remain available
through September 30, 2031, for grants, contracts, or financial
assistance agreements for disadvantaged communities (identified
according to criteria adopted by the Commissioner of Reclamation)
in a manner as determined by the Commissioner of Reclamation
for up to 100 percent of the cost of the planning, design, or construc-
tion of water projects the primary purpose of which is to provide
domestic water supplies to communities or households that do not
have reliable access to domestic water supplies in a State or terri-
tory described in the first section of the Act of June 17, 1902
(43 U.S.C. 391; 32 Stat. 388, chapter 1093).
SEC. 50232. CANAL IMPROVEMENT PROJECTS.
In addition to amounts otherwise available, there is appro-
priated to the Secretary, acting through the Commissioner of Rec-
lamation, for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, $25,000,000, to remain available
through September 30, 2031, for the design, study, and implementa-
tion of projects (including pilot and demonstration projects) to cover
water conveyance facilities with solar panels to generate renewable
energy in a manner as determined by the Secretary or for other
solar projects associated with Bureau of Reclamation projects that
increase water efficiency and assist in implementation of clean
energy goals.
SEC. 50233. DROUGHT MITIGATION IN THE RECLAMATION STATES.
(a) DEFINITION OF RECLAMATION STATE.—In this section, the
term ‘‘Reclamation State’’ means a State or territory described
in the first section of the Act of June 17, 1902 (32 Stat. 388,
chapter 1093; 43 U.S.C. 391).
(b) APPROPRIATION.—In addition to amounts otherwise avail-
able, there is appropriated to the Secretary (acting through the
Commissioner of Reclamation), for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, $4,000,000,000,
to remain available through September 30, 2026, for grants, con-
tracts, or financial assistance agreements, in accordance with the
reclamation laws, to or with public entities and Indian Tribes,
that provide for the conduct of the following activities to mitigate
the impacts of drought in the Reclamation States, with priority
given to the Colorado River Basin and other basins experiencing
comparable levels of long-term drought, to be implemented in
compliance with applicable environmental law:
(1) Compensation for a temporary or multiyear voluntary
reduction in diversion of water or consumptive water use.
(2) Voluntary system conservation projects that achieve
verifiable reductions in use of or demand for water supplies
or provide environmental benefits in the Lower Basin or Upper
Basin of the Colorado River.
H. R. 5376—237
(3) Ecosystem and habitat restoration projects to address
issues directly caused by drought in a river basin or inland
water body.
(c) REPORT.—Not later than 1 year after the date of enactment
of this Act, and each year thereafter, the Secretary shall submit
to Congress a report that describes any expenditures under this
section.
PART 4—INSULAR AFFAIRS
SEC. 50241. OFFICE OF INSULAR AFFAIRS CLIMATE CHANGE TECH-
NICAL ASSISTANCE.
(a) IN GENERAL.—In addition to amounts otherwise available,
there is appropriated to the Secretary, acting through the Office
of Insular Affairs, for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $15,000,000, to remain avail-
able through September 30, 2026, to provide technical assistance
for climate change planning, mitigation, adaptation, and resilience
to United States Insular Areas.
(b) ADMINISTRATIVE EXPENSES.—In addition to amounts other-
wise available, there is appropriated to the Secretary, acting
through the Office of Insular Affairs, for fiscal year 2022, out
of any money in the Treasury not otherwise appropriated, $900,000,
to remain available through September 30, 2026, for necessary
administrative expenses associated with carrying out this section.
PART 5—OFFSHORE WIND
SEC. 50251. LEASING ON THE OUTER CONTINENTAL SHELF.
(a) LEASING AUTHORIZED.—The Secretary may grant leases,
easements, and rights-of-way pursuant to section 8(p)(1)(C) of the
Outer Continental Shelf Lands Act (43 U.S.C. 1337(p)(1)(C)) in
an area withdrawn by—
(1) the Presidential memorandum entitled ‘‘Memorandum
on the Withdrawal of Certain Areas of the United States Outer
Continental Shelf from Leasing Disposition’’ and dated Sep-
tember 8, 2020; or
(2) the Presidential memorandum entitled ‘‘Presidential
Determination on the Withdrawal of Certain Areas of the
United States Outer Continental Shelf from Leasing Disposi-
tion’’ and dated September 25, 2020.
(b) OFFSHORE WIND FOR THE TERRITORIES.—
(1) APPLICATION OF OUTER CONTINENTAL SHELF LANDS ACT
WITH RESPECT TO TERRITORIES OF THE UNITED STATES.—
(A) IN GENERAL.—Section 2 of the Outer Continental
Shelf Lands Act (43 U.S.C. 1331) is amended—
(i) in subsection (a)—
(I) by striking ‘‘means all’’ and inserting the
following: ‘‘means—
‘‘(1) all’’; and
(II) in paragraph (1) (as so designated), by
striking ‘‘control;’’ and inserting the following:
‘‘control or within the exclusive economic zone of
the United States and adjacent to any territory
of the United States; and’’; and
(III) by adding at the end following:
H. R. 5376—238
‘‘(2) does not include any area conveyed by Congress to
a territorial government for administration;’’;
(ii) in subsection (p), by striking ‘‘and’’ after the
semicolon at the end;
(iii) in subsection (q), by striking the period at
the end and inserting ‘‘; and’’; and
(iv) by adding at the end the following:
‘‘(r) The term ‘State’ means—
‘‘(1) each of the several States;
‘‘(2) the Commonwealth of Puerto Rico;
‘‘(3) Guam;
‘‘(4) American Samoa;
‘‘(5) the United States Virgin Islands; and
‘‘(6) the Commonwealth of the Northern Mariana Islands.’’.
(B) EXCLUSIONS.—Section 18 of the Outer Continental
Shelf Lands Act (43 U.S.C. 1344) is amended by adding
at the end the following:
‘‘(i) APPLICATION.—This section shall not apply to
the scheduling of any lease sale in an area of the
outer Continental Shelf that is adjacent to the
Commonwealth of Puerto Rico, Guam, American
Samoa, the United States Virgin Islands, or the
Commonwealth of the Northern Mariana Islands.’’.
(2) WIND LEASE SALES FOR AREAS OF THE OUTER CONTI-
NENTAL SHELF.—The Outer Continental Shelf Lands Act (43
U.S.C. 1331 et seq.) is amended by adding at the end the
following:
‘‘SEC. 33. WIND LEASE SALES FOR AREAS OF THE OUTER CONTINENTAL
SHELF OFFSHORE OF TERRITORIES OF THE UNITED
STATES.
‘‘(a) WIND LEASE SALES OFF COASTS OF TERRITORIES OF THE
UNITED STATES.—
‘‘(1) CALL FOR INFORMATION AND NOMINATIONS.—
‘‘(A) IN GENERAL.—The Secretary shall issue calls for
information and nominations for proposed wind lease sales
for areas of the outer Continental Shelf described in para-
graph (2) that are determined to be feasible.
‘‘(B) INITIAL CALL.—Not later than September 30, 2025,
the Secretary shall issue an initial call for information
and nominations under this paragraph.
‘‘(2) CONDITIONAL WIND LEASE SALES.—The Secretary may
conduct wind lease sales in each area within the exclusive
economic zone of the United States adjacent to the Common-
wealth of Puerto Rico, Guam, American Samoa, the United
States Virgin Islands, or the Commonwealth of the Northern
Mariana Islands that meets each of the following criteria:
‘‘(A) The Secretary has concluded that a wind lease
sale in the area is feasible.
‘‘(B) The Secretary has determined that there is suffi-
cient interest in leasing the area.
‘‘(C) The Secretary has consulted with the Governor
of the territory regarding the suitability of the area for
wind energy development.’’.
H. R. 5376—239
PART 6—FOSSIL FUEL RESOURCES
SEC. 50261. OFFSHORE OIL AND GAS ROYALTY RATE.
Section 8(a)(1) of the Outer Continental Shelf Lands Act (43
U.S.C. 1337(a)(1)) is amended—
(1) in each of subparagraphs (A) and (C), by striking ‘‘not
less than 121⁄2 per centum’’ each place it appears and inserting
‘‘not less than 162⁄3 percent, but not more than 183⁄4 percent,
during the 10-year period beginning on the date of enactment
of the Act titled ‘An Act to provide for reconciliation pursuant
to title II of S. Con. Res. 14’, and not less than 162⁄3 percent
thereafter,’’;
(2) in subparagraph (F), by striking ‘‘no less than 121⁄2
per centum’’ and inserting ‘‘not less than 162⁄3 percent, but
not more than 183⁄4 percent, during the 10-year period begin-
ning on the date of enactment of the Act titled ‘An Act to
provide for reconciliation pursuant to title II of S. Con. Res.
14’, and not less than 162⁄3 percent thereafter,’’; and
(3) in subparagraph (H), by striking ‘‘no less than 12 and
1⁄2 per centum’’ and inserting ‘‘not less than 162⁄3 percent,
but not more than 183⁄4 percent, during the 10-year period
beginning on the date of enactment of the Act titled ‘An Act
to provide for reconciliation pursuant to title II of S. Con.
Res. 14’, and not less than 162⁄3 percent thereafter,’’.
SEC. 50262. MINERAL LEASING ACT MODERNIZATION.
(a) ONSHORE OIL AND GAS ROYALTY RATES.—
(1) LEASE OF OIL AND GAS LAND.—Section 17 of the Mineral
Leasing Act (30 U.S.C. 226) is amended—
(A) in subsection (b)(1)(A), in the fifth sentence—
(i) by striking ‘‘12.5’’ and inserting ‘‘162⁄3’’; and
(ii) by inserting ‘‘or, in the case of a lease issued
during the 10-year period beginning on the date of
enactment of the Act titled ‘An Act to provide for
reconciliation pursuant to title II of S. Con. Res. 14’,
162⁄3 percent in amount or value of the production
removed or sold from the lease’’ before the period at
the end; and
(B) by striking ‘‘121⁄2 per centum’’ each place it appears
and inserting ‘‘162⁄3 percent’’.
(2) CONDITIONS FOR REINSTATEMENT.—Section 31(e)(3) of
the Mineral Leasing Act (30 U.S.C. 188(e)(3)) is amended by
striking ‘‘162⁄3’’ each place it appears and inserting ‘‘20’’.
(b) OIL AND GAS MINIMUM BID.—Section 17(b) of the Mineral
Leasing Act (30 U.S.C. 226(b)) is amended—
(1) in paragraph (1)(B), in the first sentence, by striking
‘‘$2 per acre for a period of 2 years from the date of enactment
of the Federal Onshore Oil and Gas Leasing Reform Act of
1987.’’ and inserting ‘‘$10 per acre during the 10-year period
beginning on the date of enactment of the Act titled ‘An Act
to provide for reconciliation pursuant to title II of S. Con.
Res. 14’.’’; and
(2) in paragraph (2)(C), by striking ‘‘$2 per acre’’ and
inserting ‘‘$10 per acre’’.
(c) FOSSIL FUEL RENTAL RATES.—
(1) ANNUAL RENTALS.—Section 17(d) of the Mineral Leasing
Act (30 U.S.C. 226(d)) is amended, in the first sentence, by
H. R. 5376—240
striking ‘‘$1.50 per acre’’ and all that follows through the period
at the end and inserting ‘‘$3 per acre per year during the
2-year period beginning on the date the lease begins for new
leases, and after the end of that 2-year period, $5 per acre
per year for the following 6-year period, and not less than
$15 per acre per year thereafter, or, in the case of a lease
issued during the 10-year period beginning on the date of
enactment of the Act titled ‘An Act to provide for reconciliation
pursuant to title II of S. Con. Res. 14’, $3 per acre per year
during the 2-year period beginning on the date the lease begins,
and after the end of that 2-year period, $5 per acre per year
for the following 6-year period, and $15 per acre per year
thereafter.’’.
(2) RENTALS IN REINSTATED LEASES.—Section 31(e)(2) of
the Mineral Leasing Act (30 U.S.C. 188(e)(2)) is amended by
striking ‘‘$10’’ and inserting ‘‘$20’’.
(d) EXPRESSION OF INTEREST FEE.—Section 17 of the Mineral
Leasing Act (30 U.S.C. 226) is amended by adding at the end
the following:
‘‘(q) FEE FOR EXPRESSION OF INTEREST.—
‘‘(1) IN GENERAL.—The Secretary shall assess a nonrefund-
able fee against any person that, in accordance with procedures
established by the Secretary to carry out this subsection, sub-
mits an expression of interest in leasing land available for
disposition under this section for exploration for, and develop-
ment of, oil or gas.
‘‘(2) AMOUNT OF FEE.—
‘‘(A) IN GENERAL.—Subject to subparagraph (B), the
fee assessed under paragraph (1) shall be $5 per acre
of the area covered by the applicable expression of interest.
‘‘(B) ADJUSTMENT OF FEE.—The Secretary shall, by
regulation, not less frequently than every 4 years, adjust
the amount of the fee under subparagraph (A) to reflect
the change in inflation.’’.
(e) ELIMINATION OF NONCOMPETITIVE LEASING.—
(1) IN GENERAL.—Section 17 of the Mineral Leasing Act
(30 U.S.C. 226) is amended—
(A) in subsection (b)—
(i) in paragraph (1)(A)—
(I) in the first sentence, by striking ‘‘para-
graphs (2) and (3) of this subsection’’ and inserting
‘‘paragraph (2)’’; and
(II) by striking the last sentence; and
(ii) by striking paragraph (3);
(B) by striking subsection (c) and inserting the fol-
lowing:
‘‘(c) ADDITIONAL ROUNDS OF COMPETITIVE BIDDING.—Land
made available for leasing under subsection (b)(1) for which no
bid is accepted or received, or the land for which a lease terminates,
expires, is cancelled, or is relinquished, may be made available
by the Secretary of the Interior for a new round of competitive
bidding under that subsection.’’; and
(C) by striking subsection (e) and inserting the fol-
lowing:
‘‘(e) TERM OF LEASE.—
H. R. 5376—241
‘‘(1) IN GENERAL.—Any lease issued under this section,
including a lease for tar sand areas, shall be for a primary
term of 10 years.
‘‘(2) CONTINUATION OF LEASE.—A lease described in para-
graph (1) shall continue after the primary term of the lease
for any period during which oil or gas is produced in paying
quantities.
‘‘(3) ADDITIONAL EXTENSIONS.—Any lease issued under this
section for land on which, or for which under an approved
cooperative or unit plan of development or operation, actual
drilling operations were commenced and diligently prosecuted
prior to the end of the primary term of the lease shall be
extended for 2 years and for any period thereafter during
which oil or gas is produced in paying quantities.’’.
(2) CONFORMING AMENDMENTS.—Section 31 of the Mineral
Leasing Act (30 U.S.C. 188) is amended—
(A) in subsection (d)(1), in the first sentence, by striking
‘‘or section 17(c) of this Act’’;
(B) in subsection (e)—
(i) in paragraph (2)—
(I) by striking ‘‘either’’; and
(II) by striking ‘‘or the inclusion’’ and all that
follows through ‘‘, all’’; and
(ii) in paragraph (3)—
(I) in subparagraph (A), by adding ‘‘and’’ after
the semicolon;
(II) by striking subparagraph (B); and
(III) by striking ‘‘(3)(A) payment’’ and inserting
the following:
‘‘(3) payment’’;
(C) in subsection (g)—
(i) in paragraph (1), by striking ‘‘as a competitive’’
and all that follows through ‘‘of this Act’’ and inserting
‘‘in the same manner as the original lease issued pursu-
ant to section 17’’;
(ii) by striking paragraph (2);
(iii) by redesignating paragraphs (3) and (4) as
paragraphs (2) and (3), respectively; and
(iv) in paragraph (2) (as so redesignated), by
striking ‘‘applicable to leases issued under subsection
17(c) of this Act (30 U.S.C. 226(c)) except,’’ and
inserting ‘‘except’’;
(D) in subsection (h), by striking ‘‘subsections (d) and
(f) of this section’’ and inserting ‘‘subsection (d)’’;
(E) in subsection (i), by striking ‘‘(i)(1) In acting’’ and
all that follows through ‘‘of this section’’ in paragraph (2)
and inserting the following:
‘‘(i) ROYALTY REDUCTION IN REINSTATED LEASES.—
In acting on a petition for reinstatement pursuant
to subsection (d)’’;
(F) by striking subsection (f); and
(G) by redesignating subsections (g) through (j) as sub-
sections (f) through (i), respectively.
SEC. 50263. ROYALTIES ON ALL EXTRACTED METHANE.
(a) IN GENERAL.—For all leases issued after the date of enact-
ment of this Act, except as provided in subsection (b), royalties
H. R. 5376—242
paid for gas produced from Federal land and on the outer Conti-
nental Shelf shall be assessed on all gas produced, including all
gas that is consumed or lost by venting, flaring, or negligent releases
through any equipment during upstream operations.
(b) EXCEPTION.—Subsection (a) shall not apply with respect
to—
(1) gas vented or flared for not longer than 48 hours in
an emergency situation that poses a danger to human health,
safety, or the environment;
(2) gas used or consumed within the area of the lease,
unit, or communitized area for the benefit of the lease, unit,
or communitized area; or
(3) gas that is unavoidably lost.
SEC. 50264. LEASE SALES UNDER THE 2017–2022 OUTER CONTINENTAL
SHELF LEASING PROGRAM.
(a) DEFINITIONS.—In this section:
(1) LEASE SALE 257.—The term ‘‘Lease Sale 257’’ means
the lease sale numbered 257 that was approved in the Record
of Decision described in the notice of availability of a record
of decision issued on August 31, 2021, entitled ‘‘Gulf of Mexico,
Outer Continental Shelf (OCS), Oil and Gas Lease Sale 257’’
(86 Fed. Reg. 50160 (September 7, 2021)), and is the subject
of the final notice of sale entitled ‘‘Gulf of Mexico Outer Conti-
nental Shelf Oil and Gas Lease Sale 257’’ (86 Fed. Reg. 54728
(October 4, 2021)).
(2) LEASE SALE 258.—The term ‘‘Lease Sale 258’’ means
the lease sale numbered 258 described in the 2017–2022 Outer
Continental Shelf Oil and Gas Leasing Proposed Final Program
published on November 18, 2016, and approved by the Secretary
in the Record of Decision issued on January 17, 2017, described
in the notice of availability entitled ‘‘Record of Decision for
the 2017–2022 Outer Continental Shelf Oil and Gas Leasing
Program Final Programmatic Environmental Impact State-
ment; MMAA104000’’ (82 Fed. Reg. 6643 (January 19, 2017)).
(3) LEASE SALE 259.—The term ‘‘Lease Sale 259’’ means
the lease sale numbered 259 described in the 2017–2022 Outer
Continental Shelf Oil and Gas Leasing Proposed Final Program
published on November 18, 2016, and approved by the Secretary
in the Record of Decision issued on January 17, 2017, described
in the notice of availability entitled ‘‘Record of Decision for
the 2017–2022 Outer Continental Shelf Oil and Gas Leasing
Program Final Programmatic Environmental Impact State-
ment; MMAA104000’’ (82 Fed. Reg. 6643 (January 19, 2017)).
(4) LEASE SALE 261.—The term ‘‘Lease Sale 261’’ means
the lease sale numbered 261 described in the 2017–2022 Outer
Continental Shelf Oil and Gas Leasing Proposed Final Program
published on November 18, 2016, and approved by the Secretary
in the Record of Decision issued on January 17, 2017, described
in the notice of availability entitled ‘‘Record of Decision for
the 2017–2022 Outer Continental Shelf Oil and Gas Leasing
Program Final Programmatic Environmental Impact State-
ment; MMAA104000’’ (82 Fed. Reg. 6643 (January 19, 2017)).
(b) LEASE SALE 257 REINSTATEMENT.—
(1) ACCEPTANCE OF BIDS.—Not later 30 days after the date
of enactment of this Act, the Secretary shall, without modifica-
tion or delay—
H. R. 5376—243
(A) accept the highest valid bid for each tract or bidding
unit of Lease Sale 257 for which a valid bid was received
on November 17, 2021; and
(B) provide the appropriate lease form to the winning
bidder to execute and return.
(2) LEASE ISSUANCE.—On receipt of an executed lease form
under paragraph (1)(B) and payment of the rental for the
first year, the balance of the bonus bid (unless deferred), and
any required bond or security from the high bidder, the Sec-
retary shall promptly issue to the high bidder a fully executed
lease, in accordance with—
(A) the regulations in effect on the date of Lease Sale
257; and
(B) the terms and conditions of the final notice of
sale entitled ‘‘Gulf of Mexico Outer Continental Shelf Oil
and Gas Lease Sale 257’’ (86 Fed. Reg. 54728 (October
4, 2021)).
(c) REQUIREMENT FOR LEASE SALE 258.—Notwithstanding the
expiration of the 2017–2022 leasing program, not later than
December 31, 2022, the Secretary shall conduct Lease Sale 258
in accordance with the Record of Decision approved by the Secretary
on January 17, 2017, described in the notice of availability entitled
‘‘Record of Decision for the 2017–2022 Outer Continental Shelf
Oil and Gas Leasing Program Final Programmatic Environmental
Impact Statement; MMAA104000’’ issued on January 17, 2017 (82
Fed. Reg. 6643 (January 19, 2017)).
(d) REQUIREMENT FOR LEASE SALE 259.—Notwithstanding the
expiration of the 2017–2022 leasing program, not later than March
31, 2023, the Secretary shall conduct Lease Sale 259 in accordance
with the Record of Decision approved by the Secretary on January
17, 2017, described in the notice of availability entitled ‘‘Record
of Decision for the 2017–2022 Outer Continental Shelf Oil and
Gas Leasing Program Final Programmatic Environmental Impact
Statement; MMAA104000’’ issued on January 17, 2017 (82 Fed.
Reg. 6643 (January 19, 2017)).
(e) REQUIREMENT FOR LEASE SALE 261.—Notwithstanding the
expiration of the 2017–2022 leasing program, not later than Sep-
tember 30, 2023, the Secretary shall conduct Lease Sale 261 in
accordance with the Record of Decision approved by the Secretary
on January 17, 2017, described in the notice of availability entitled
‘‘Record of Decision for the 2017–2022 Outer Continental Shelf
Oil and Gas Leasing Program Final Programmatic Environmental
Impact Statement; MMAA104000’’ issued on January 17, 2017 (82
Fed. Reg. 6643 (January 19, 2017)).
SEC. 50265. ENSURING ENERGY SECURITY.
(a) DEFINITIONS.—In this section:
(1) FEDERAL LAND.—The term ‘‘Federal land’’ means public
lands (as defined in section 103 of the Federal Land Policy
and Management Act of 1976 (43 U.S.C. 1702)).
(2) OFFSHORE LEASE SALE.—The term ‘‘offshore lease sale’’
means an oil and gas lease sale—
(A) that is held by the Secretary in accordance with
the Outer Continental Shelf Lands Act (43 U.S.C. 1331
et seq.); and
H. R. 5376—244
(B) that, if any acceptable bids have been received
for any tract offered in the lease sale, results in the
issuance of a lease.
(3) ONSHORE LEASE SALE.—The term ‘‘onshore lease sale’’
means a quarterly oil and gas lease sale—
(A) that is held by the Secretary in accordance with
section 17 of the Mineral Leasing Act (30 U.S.C. 226);
and
(B) that, if any acceptable bids have been received
for any parcel offered in the lease sale, results in the
issuance of a lease.
(b) LIMITATION ON ISSUANCE OF CERTAIN LEASES OR RIGHTS-
OF-WAY.—During the 10-year period beginning on the date of enact-
ment of this Act—
(1) the Secretary may not issue a right-of-way for wind
or solar energy development on Federal land unless—
(A) an onshore lease sale has been held during the
120-day period ending on the date of the issuance of the
right-of-way for wind or solar energy development; and
(B) the sum total of acres offered for lease in onshore
lease sales during the 1-year period ending on the date
of the issuance of the right-of-way for wind or solar energy
development is not less than the lesser of—
(i) 2,000,000 acres; and
(ii) 50 percent of the acreage for which expressions
of interest have been submitted for lease sales during
that period; and
(2) the Secretary may not issue a lease for offshore wind
development under section 8(p)(1)(C) of the Outer Continental
Shelf Lands Act (43 U.S.C. 1337(p)(1)(C)) unless—
(A) an offshore lease sale has been held during the
1-year period ending on the date of the issuance of the
lease for offshore wind development; and
(B) the sum total of acres offered for lease in offshore
lease sales during the 1-year period ending on the date
of the issuance of the lease for offshore wind development
is not less than 60,000,000 acres.
(c) SAVINGS.—Except as expressly provided in paragraphs (1)
and (2) of subsection (b), nothing in this section supersedes, amends,
or modifies existing law.
PART 7—UNITED STATES GEOLOGICAL
SURVEY
SEC. 50271. UNITED STATES GEOLOGICAL SURVEY 3D ELEVATION PRO-
GRAM.
In addition to amounts otherwise available, there is appro-
priated to the Secretary, acting through the Director of the United
States Geological Survey, for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $23,500,000, to remain
available through September 30, 2031, to produce, collect, dissemi-
nate, and use 3D elevation data.
H. R. 5376—245
PART 8—OTHER NATURAL RESOURCES
MATTERS
SEC. 50281. DEPARTMENT OF THE INTERIOR OVERSIGHT.
In addition to amounts otherwise available, there is appro-
priated to the Secretary for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $10,000,000, to remain
available through September 30, 2031, for oversight by the Depart-
ment of the Interior Office of Inspector General of the Department
of the Interior activities for which funding is appropriated in this
subtitle.
Subtitle C—Environmental Reviews
SEC. 50301. DEPARTMENT OF ENERGY.
In addition to amounts otherwise available, there is appro-
priated to the Secretary of Energy for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated,
$115,000,000, to remain available through September 30, 2031,
to provide for the hiring and training of personnel, the development
of programmatic environmental documents, the procurement of
technical or scientific services for environmental reviews, the
development of environmental data or information systems, stake-
holder and community engagement, and the purchase of new equip-
ment for environmental analysis to facilitate timely and efficient
environmental reviews and authorizations.
SEC. 50302. FEDERAL ENERGY REGULATORY COMMISSION.
(a) IN GENERAL.—In addition to amounts otherwise available,
there is appropriated to the Federal Energy Regulatory Commission
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $100,000,000, to remain available through September
30, 2031, to provide for the hiring and training of personnel, the
development of programmatic environmental documents, the
procurement of technical or scientific services for environmental
reviews, the development of environmental data or information
systems, stakeholder and community engagement, and the purchase
of new equipment for environmental analysis to facilitate timely
and efficient environmental reviews and authorizations.
(b) FEES AND CHARGES.—Section 3401(a) of the Omnibus
Budget Reconciliation Act of 1986 (42 U.S.C. 7178(a)) shall not
apply to the costs incurred by the Federal Energy Regulatory
Commission in carrying out this section.
SEC. 50303. DEPARTMENT OF THE INTERIOR.
In addition to amounts otherwise available, there is appro-
priated to the Secretary of the Interior for fiscal year 2022, out
of any money in the Treasury not otherwise appropriated,
$150,000,000, to remain available through September 30, 2026,
to provide for the hiring and training of personnel, the development
of programmatic environmental documents, the procurement of
technical or scientific services for environmental reviews, the
development of environmental data or information systems, stake-
holder and community engagement, and the purchase of new equip-
ment for environmental analysis to facilitate timely and efficient
environmental reviews and authorizations by the National Park
H. R. 5376—246
Service, the Bureau of Land Management, the Bureau of Ocean
Energy Management, the Bureau of Reclamation, the Bureau of
Safety and Environmental Enforcement, and the Office of Surface
Mining Reclamation and Enforcement.
TITLE VI—COMMITTEE ON
ENVIRONMENT AND PUBLIC WORKS
Subtitle A—Air Pollution
SEC. 60101. CLEAN HEAVY-DUTY VEHICLES.
The Clean Air Act is amended by inserting after section 131
of such Act (42 U.S.C. 7431) the following:
‘‘SEC. 132. CLEAN HEAVY-DUTY VEHICLES.
‘‘(a) APPROPRIATIONS.—
‘‘(1) IN GENERAL.—In addition to amounts otherwise avail-
able, there is appropriated to the Administrator for fiscal year
2022, out of any money in the Treasury not otherwise appro-
priated, $600,000,000, to remain available until September 30,
2031, to carry out this section.
‘‘(2) NONATTAINMENT AREAS.—In addition to amounts other-
wise available, there is appropriated to the Administrator for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $400,000,000, to remain available until Sep-
tember 30, 2031, to make awards under this section to eligible
recipients and to eligible contractors that propose to replace
eligible vehicles to serve 1 or more communities located in
an air quality area designated pursuant to section 107 as
nonattainment for any air pollutant.
‘‘(3) RESERVATION.—Of the funds appropriated by para-
graph (1), the Administrator shall reserve 3 percent for adminis-
trative costs necessary to carry out this section.
‘‘(b) PROGRAM.—Beginning not later than 180 days after the
date of enactment of this section, the Administrator shall implement
a program to make awards of grants and rebates to eligible recipi-
ents, and to make awards of contracts to eligible contractors for
providing rebates, for up to 100 percent of costs for—
‘‘(1) the incremental costs of replacing an eligible vehicle
that is not a zero-emission vehicle with a zero-emission vehicle,
as determined by the Administrator based on the market value
of the vehicles;
‘‘(2) purchasing, installing, operating, and maintaining
infrastructure needed to charge, fuel, or maintain zero-emission
vehicles;
‘‘(3) workforce development and training to support the
maintenance, charging, fueling, and operation of zero-emission
vehicles; and
‘‘(4) planning and technical activities to support the adop-
tion and deployment of zero-emission vehicles.
‘‘(c) APPLICATIONS.—To seek an award under this section, an
eligible recipient or eligible contractor shall submit to the Adminis-
trator an application at such time, in such manner, and containing
such information as the Administrator shall prescribe.
‘‘(d) DEFINITIONS.—For purposes of this section:
H. R. 5376—247
‘‘(1) ELIGIBLE CONTRACTOR.—The term ‘eligible contractor’
means a contractor that has the capacity—
‘‘(A) to sell, lease, license, or contract for service zero-
emission vehicles, or charging or other equipment needed
to charge, fuel, or maintain zero-emission vehicles, to
individuals or entities that own, lease, license, or contract
for service an eligible vehicle; or
‘‘(B) to arrange financing for such a sale, lease, license,
or contract for service.
‘‘(2) ELIGIBLE RECIPIENT.—The term ‘eligible recipient’
means—
‘‘(A) a State;
‘‘(B) a municipality;
‘‘(C) an Indian tribe; or
‘‘(D) a nonprofit school transportation association.
‘‘(3) ELIGIBLE VEHICLE.—The term ‘eligible vehicle’ means
a Class 6 or Class 7 heavy-duty vehicle as defined in section
1037.801 of title 40, Code of Federal Regulations (as in effect
on the date of enactment of this section).
‘‘(4) GREENHOUSE GAS.—The term ‘greenhouse gas’ means
the air pollutants carbon dioxide, hydrofluorocarbons, methane,
nitrous oxide, perfluorocarbons, and sulfur hexafluoride.
‘‘(5) ZERO-EMISSION VEHICLE.—The term ‘zero-emission
vehicle’ means a vehicle that has a drivetrain that produces,
under any possible operational mode or condition, zero exhaust
emissions of—
‘‘(A) any air pollutant that is listed pursuant to section
108(a) (or any precursor to such an air pollutant); and
‘‘(B) any greenhouse gas.’’.
SEC. 60102. GRANTS TO REDUCE AIR POLLUTION AT PORTS.
The Clean Air Act is amended by inserting after section 132
of such Act, as added by section 60101 of this Act, the following:
‘‘SEC. 133. GRANTS TO REDUCE AIR POLLUTION AT PORTS.
‘‘(a) APPROPRIATIONS.—
‘‘(1) GENERAL ASSISTANCE.—In addition to amounts other-
wise available, there is appropriated to the Administrator for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $2,250,000,000, to remain available until Sep-
tember 30, 2027, to award rebates and grants to eligible recipi-
ents on a competitive basis—
‘‘(A) to purchase or install zero-emission port equip-
ment or technology for use at, or to directly serve, one
or more ports;
‘‘(B) to conduct any relevant planning or permitting
in connection with the purchase or installation of such
zero-emission port equipment or technology; and
‘‘(C) to develop qualified climate action plans.
‘‘(2) NONATTAINMENT AREAS.—In addition to amounts other-
wise available, there is appropriated to the Administrator for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $750,000,000, to remain available until Sep-
tember 30, 2027, to award rebates and grants to eligible recipi-
ents to carry out activities described in paragraph (1) with
respect to ports located in air quality areas designated pursuant
to section 107 as nonattainment for an air pollutant.
H. R. 5376—248
‘‘(b) LIMITATION.—Funds awarded under this section shall not
be used by any recipient or subrecipient to purchase or install
zero-emission port equipment or technology that will not be located
at, or directly serve, the one or more ports involved.
‘‘(c) ADMINISTRATION OF FUNDS.—Of the funds made available
by this section, the Administrator shall reserve 2 percent for
administrative costs necessary to carry out this section.
‘‘(d) DEFINITIONS.—In this section:
‘‘(1) ELIGIBLE RECIPIENT.—The term ‘eligible recipient’
means—
‘‘(A) a port authority;
‘‘(B) a State, regional, local, or Tribal agency that has
jurisdiction over a port authority or a port;
‘‘(C) an air pollution control agency; or
‘‘(D) a private entity that—
‘‘(i) applies for a grant under this section in part-
nership with an entity described in any of subpara-
graphs (A) through (C); and
‘‘(ii) owns, operates, or uses the facilities, cargo-
handling equipment, transportation equipment, or
related technology of a port.
‘‘(2) GREENHOUSE GAS.—The term ‘greenhouse gas’ means
the air pollutants carbon dioxide, hydrofluorocarbons, methane,
nitrous oxide, perfluorocarbons, and sulfur hexafluoride.
‘‘(3) QUALIFIED CLIMATE ACTION PLAN.—The term ‘qualified
climate action plan’ means a detailed and strategic plan that—
‘‘(A) establishes goals, implementation strategies, and
accounting and inventory practices to reduce emissions at
one or more ports of—
‘‘(i) greenhouse gases;
‘‘(ii) an air pollutant that is listed pursuant to
section 108(a) (or any precursor to such an air pollut-
ant); and
‘‘(iii) hazardous air pollutants;
‘‘(B) includes a strategy to collaborate with, commu-
nicate with, and address potential effects on low-income
and disadvantaged near-port communities and other stake-
holders that may be affected by implementation of the
plan; and
‘‘(C) describes how an eligible recipient has imple-
mented or will implement measures to increase the resil-
ience of the one or more ports involved.
‘‘(4) ZERO-EMISSION PORT EQUIPMENT OR TECHNOLOGY.—
The term ‘zero-emission port equipment or technology’ means
human-operated equipment or human-maintained technology
that—
‘‘(A) produces zero emissions of any air pollutant that
is listed pursuant to section 108(a) (or any precursor to
such an air pollutant) and any greenhouse gas other than
water vapor; or
‘‘(B) captures 100 percent of the emissions described
in subparagraph (A) that are produced by an ocean-going
vessel at berth.’’.
SEC. 60103. GREENHOUSE GAS REDUCTION FUND.
The Clean Air Act is amended by inserting after section 133
of such Act, as added by section 60102 of this Act, the following:
H. R. 5376—249
‘‘SEC. 134. GREENHOUSE GAS REDUCTION FUND.
‘‘(a) APPROPRIATIONS.—
‘‘(1) ZERO-EMISSION TECHNOLOGIES.—In addition to
amounts otherwise available, there is appropriated to the
Administrator for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $7,000,000,000, to remain
available until September 30, 2024, to make grants, on a
competitive basis and beginning not later than 180 calendar
days after the date of enactment of this section, to States,
municipalities, Tribal governments, and eligible recipients for
the purposes of providing grants, loans, or other forms of finan-
cial assistance, as well as technical assistance, to enable low-
income and disadvantaged communities to deploy or benefit
from zero-emission technologies, including distributed tech-
nologies on residential rooftops, and to carry out other green-
house gas emission reduction activities, as determined appro-
priate by the Administrator in accordance with this section.
‘‘(2) GENERAL ASSISTANCE.—In addition to amounts other-
wise available, there is appropriated to the Administrator for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $11,970,000,000, to remain available until Sep-
tember 30, 2024, to make grants, on a competitive basis and
beginning not later than 180 calendar days after the date
of enactment of this section, to eligible recipients for the pur-
poses of providing financial assistance and technical assistance
in accordance with subsection (b).
‘‘(3) LOW-INCOME AND DISADVANTAGED COMMUNITIES.—In
addition to amounts otherwise available, there is appropriated
to the Administrator for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $8,000,000,000,
to remain available until September 30, 2024, to make grants,
on a competitive basis and beginning not later than 180 cal-
endar days after the date of enactment of this section, to
eligible recipients for the purposes of providing financial assist-
ance and technical assistance in low-income and disadvantaged
communities in accordance with subsection (b).
‘‘(4) ADMINISTRATIVE COSTS.—In addition to amounts other-
wise available, there is appropriated to the Administrator for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $30,000,000, to remain available until September
30, 2031, for the administrative costs necessary to carry out
activities under this section.
‘‘(b) USE OF FUNDS.—An eligible recipient that receives a grant
pursuant to subsection (a) shall use the grant in accordance with
the following:
‘‘(1) DIRECT INVESTMENT.—The eligible recipient shall—
‘‘(A) provide financial assistance to qualified projects
at the national, regional, State, and local levels;
‘‘(B) prioritize investment in qualified projects that
would otherwise lack access to financing; and
‘‘(C) retain, manage, recycle, and monetize all repay-
ments and other revenue received from fees, interest,
repaid loans, and all other types of financial assistance
provided using grant funds under this section to ensure
continued operability.
‘‘(2) INDIRECT INVESTMENT.—The eligible recipient shall
provide funding and technical assistance to establish new or
H. R. 5376—250
support existing public, quasi-public, not-for-profit, or nonprofit
entities that provide financial assistance to qualified projects
at the State, local, territorial, or Tribal level or in the District
of Columbia, including community- and low-income-focused
lenders and capital providers.
‘‘(c) DEFINITIONS.—In this section:
‘‘(1) ELIGIBLE RECIPIENT.—The term ‘eligible recipient’
means a nonprofit organization that—
‘‘(A) is designed to provide capital, leverage private
capital, and provide other forms of financial assistance
for the rapid deployment of low- and zero-emission prod-
ucts, technologies, and services;
‘‘(B) does not take deposits other than deposits from
repayments and other revenue received from financial
assistance provided using grant funds under this section;
‘‘(C) is funded by public or charitable contributions;
and
‘‘(D) invests in or finances projects alone or in conjunc-
tion with other investors.
‘‘(2) GREENHOUSE GAS.—The term ‘greenhouse gas’ means
the air pollutants carbon dioxide, hydrofluorocarbons, methane,
nitrous oxide, perfluorocarbons, and sulfur hexafluoride.
‘‘(3) QUALIFIED PROJECT.—The term ‘qualified project’
includes any project, activity, or technology that—
‘‘(A) reduces or avoids greenhouse gas emissions and
other forms of air pollution in partnership with, and by
leveraging investment from, the private sector; or
‘‘(B) assists communities in the efforts of those commu-
nities to reduce or avoid greenhouse gas emissions and
other forms of air pollution.
‘‘(4) ZERO-EMISSION TECHNOLOGY.—The term ‘zero-emission
technology’ means any technology that produces zero emissions
of—
‘‘(A) any air pollutant that is listed pursuant to section
108(a) (or any precursor to such an air pollutant); and
‘‘(B) any greenhouse gas.’’.
SEC. 60104. DIESEL EMISSIONS REDUCTIONS.
(a) GOODS MOVEMENT.—In addition to amounts otherwise avail-
able, there is appropriated to the Administrator of the Environ-
mental Protection Agency for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $60,000,000, to remain
available until September 30, 2031, for grants, rebates, and loans
under section 792 of the Energy Policy Act of 2005 (42 U.S.C.
16132) to identify and reduce diesel emissions resulting from goods
movement facilities, and vehicles servicing goods movement facili-
ties, in low-income and disadvantaged communities to address the
health impacts of such emissions on such communities.
(b) ADMINISTRATIVE COSTS.—The Administrator of the Environ-
mental Protection Agency shall reserve 2 percent of the amounts
made available under this section for the administrative costs nec-
essary to carry out activities pursuant to this section.
SEC. 60105. FUNDING TO ADDRESS AIR POLLUTION.
(a) FENCELINE AIR MONITORING AND SCREENING AIR MONI-
TORING.—In addition to amounts otherwise available, there is appro-
priated to the Administrator of the Environmental Protection
Agency for fiscal year 2022, out of any money in the Treasury
H. R. 5376—251
not otherwise appropriated, $117,500,000, to remain available until
September 30, 2031, for grants and other activities authorized
under subsections (a) through (c) of section 103 and section 105
of the Clean Air Act (42 U.S.C. 7403(a)–(c), 7405) to deploy,
integrate, support, and maintain fenceline air monitoring, screening
air monitoring, national air toxics trend stations, and other air
toxics and community monitoring.
(b) MULTIPOLLUTANT MONITORING STATIONS.—In addition to
amounts otherwise available, there is appropriated to the Adminis-
trator of the Environmental Protection Agency for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated,
$50,000,000, to remain available until September 30, 2031, for
grants and other activities authorized under subsections (a) through
(c) of section 103 and section 105 of the Clean Air Act (42 U.S.C.
7403(a)–(c), 7405)—
(1) to expand the national ambient air quality monitoring
network with new multipollutant monitoring stations; and
(2) to replace, repair, operate, and maintain existing mon-
itors.
(c) AIR QUALITY SENSORS IN LOW-INCOME AND DISADVANTAGED
COMMUNITIES.—In addition to amounts otherwise available, there
is appropriated to the Administrator of the Environmental Protec-
tion Agency for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, $3,000,000, to remain available until
September 30, 2031, for grants and other activities authorized
under subsections (a) through (c) of section 103 and section 105
of the Clean Air Act (42 U.S.C. 7403(a)–(c), 7405) to deploy,
integrate, and operate air quality sensors in low-income and dis-
advantaged communities.
(d) EMISSIONS FROM WOOD HEATERS.—In addition to amounts
otherwise available, there is appropriated to the Administrator
of the Environmental Protection Agency for fiscal year 2022, out
of any money in the Treasury not otherwise appropriated,
$15,000,000, to remain available until September 30, 2031, for
grants and other activities authorized under subsections (a) through
(c) of section 103 and section 105 of the Clean Air Act (42 U.S.C.
7403(a)–(c), 7405) for testing and other agency activities to address
emissions from wood heaters.
(e) METHANE MONITORING.—In addition to amounts otherwise
available, there is appropriated to the Administrator of the Environ-
mental Protection Agency for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $20,000,000, to remain
available until September 30, 2031, for grants and other activities
authorized under subsections (a) through (c) of section 103 and
section 105 of the Clean Air Act (42 U.S.C. 7403(a)–(c), 7405)
for monitoring emissions of methane.
(f) CLEAN AIR ACT GRANTS.—In addition to amounts otherwise
available, there is appropriated to the Administrator of the Environ-
mental Protection Agency for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $25,000,000, to remain
available until September 30, 2031, for grants and other activities
authorized under subsections (a) through (c) of section 103 and
section 105 of the Clean Air Act (42 U.S.C. 7403(a)–(c), 7405).
(g) GREENHOUSE GAS AND ZERO-EMISSION STANDARDS FOR
MOBILE SOURCES.—In addition to amounts otherwise available,
there is appropriated to the Administrator of the Environmental
Protection Agency for fiscal year 2022, out of any money in the
H. R. 5376—252
Treasury not otherwise appropriated, $5,000,000, to remain avail-
able until September 30, 2031, to provide grants to States to adopt
and implement greenhouse gas and zero-emission standards for
mobile sources pursuant to section 177 of the Clean Air Act (42
U.S.C. 7507).
(h) DEFINITION OF GREENHOUSE GAS.—In this section, the term
‘‘greenhouse gas’’ means the air pollutants carbon dioxide,
hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and
sulfur hexafluoride.
SEC. 60106. FUNDING TO ADDRESS AIR POLLUTION AT SCHOOLS.
(a) IN GENERAL.—In addition to amounts otherwise available,
there is appropriated to the Administrator of the Environmental
Protection Agency for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $37,500,000, to remain avail-
able until September 30, 2031, for grants and other activities to
monitor and reduce greenhouse gas emissions and other air pollut-
ants at schools in low-income and disadvantaged communities under
subsections (a) through (c) of section 103 of the Clean Air Act
(42 U.S.C. 7403(a)–(c)) and section 105 of that Act (42 U.S.C.
7405).
(b) TECHNICAL ASSISTANCE.—In addition to amounts otherwise
available, there is appropriated to the Administrator of the Environ-
mental Protection Agency for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $12,500,000, to remain
available until September 30, 2031, for providing technical assist-
ance to schools in low-income and disadvantaged communities under
subsections (a) through (c) of section 103 of the Clean Air Act
(42 U.S.C. 7403(a)–(c)) and section 105 of that Act (42 U.S.C.
7405)—
(1) to address environmental issues;
(2) to develop school environmental quality plans that
include standards for school building, design, construction, and
renovation; and
(3) to identify and mitigate ongoing air pollution hazards.
(c) DEFINITION OF GREENHOUSE GAS.—In this section, the term
‘‘greenhouse gas’’ means the air pollutants carbon dioxide,
hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and
sulfur hexafluoride.
SEC. 60107. LOW EMISSIONS ELECTRICITY PROGRAM.
The Clean Air Act is amended by inserting after section 134
of such Act, as added by section 60103 of this Act, the following:
‘‘SEC. 135. LOW EMISSIONS ELECTRICITY PROGRAM.
‘‘(a) APPROPRIATION.—In addition to amounts otherwise avail-
able, there is appropriated to the Administrator for fiscal year
2022, out of any money in the Treasury not otherwise appropriated,
to remain available until September 30, 2031—
‘‘(1) $17,000,000 for consumer-related education and part-
nerships with respect to reductions in greenhouse gas emissions
that result from domestic electricity generation and use;
‘‘(2) $17,000,000 for education, technical assistance, and
partnerships within low-income and disadvantaged commu-
nities with respect to reductions in greenhouse gas emissions
that result from domestic electricity generation and use;
‘‘(3) $17,000,000 for industry-related outreach, technical
assistance, and partnerships with respect to reductions in
H. R. 5376—253
greenhouse gas emissions that result from domestic electricity
generation and use;
‘‘(4) $17,000,000 for outreach and technical assistance to,
and partnerships with, State, Tribal, and local governments
with respect to reductions in greenhouse gas emissions that
result from domestic electricity generation and use;
‘‘(5) $1,000,000 to assess, not later than 1 year after the
date of enactment of this section, the reductions in greenhouse
gas emissions that result from changes in domestic electricity
generation and use that are anticipated to occur on an annual
basis through fiscal year 2031; and
‘‘(6) $18,000,000 to ensure that reductions in greenhouse
gas emissions are achieved through use of the existing authori-
ties of this Act, incorporating the assessment under paragraph
(5).
‘‘(b) ADMINISTRATION OF FUNDS.—Of the amounts made avail-
able under subsection (a), the Administrator shall reserve 2 percent
for the administrative costs necessary to carry out activities pursu-
ant to that subsection.
‘‘(c) DEFINITION OF GREENHOUSE GAS.—In this section, the term
‘greenhouse gas’ means the air pollutants carbon dioxide,
hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and
sulfur hexafluoride.’’.
SEC. 60108. FUNDING FOR SECTION 211(O) OF THE CLEAN AIR ACT.
(a) TEST AND PROTOCOL DEVELOPMENT.—In addition to amounts
otherwise available, there is appropriated to the Administrator
of the Environmental Protection Agency for fiscal year 2022, out
of any money in the Treasury not otherwise appropriated,
$5,000,000, to remain available until September 30, 2031, to carry
out section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)) with
respect to—
(1) the development and establishment of tests and proto-
cols regarding the environmental and public health effects of
a fuel or fuel additive;
(2) internal and extramural data collection and analyses
to regularly update applicable regulations, guidance, and proce-
dures for determining lifecycle greenhouse gas emissions of
a fuel; and
(3) the review, analysis, and evaluation of the impacts
of all transportation fuels, including fuel lifecycle implications,
on the general public and on low-income and disadvantaged
communities.
(b) INVESTMENTS IN ADVANCED BIOFUELS.—In addition to
amounts otherwise available, there is appropriated to the Adminis-
trator of the Environmental Protection Agency for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated,
$10,000,000, to remain available until September 30, 2031, for
new grants to industry and other related activities under section
211(o) of the Clean Air Act (42 U.S.C. 7545(o)) to support invest-
ments in advanced biofuels.
(c) DEFINITION OF GREENHOUSE GAS.—In this section, the term
‘‘greenhouse gas’’ means the air pollutants carbon dioxide,
hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and
sulfur hexafluoride.
H. R. 5376—254
SEC. 60109. FUNDING FOR IMPLEMENTATION OF THE AMERICAN
INNOVATION AND MANUFACTURING ACT.
(a) APPROPRIATIONS.—
(1) IN GENERAL.—In addition to amounts otherwise avail-
able, there is appropriated to the Administrator of the Environ-
mental Protection Agency for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $20,000,000, to
remain available until September 30, 2026, to carry out sub-
sections (a) through (i) and subsection (k) of section 103 of
division S of Public Law 116–260 (42 U.S.C. 7675).
(2) IMPLEMENTATION AND COMPLIANCE TOOLS.—In addition
to amounts otherwise available, there is appropriated to the
Administrator of the Environmental Protection Agency for fiscal
year 2022, out of any money in the Treasury not otherwise
appropriated, $3,500,000, to remain available until September
30, 2026, to deploy new implementation and compliance tools
to carry out subsections (a) through (i) and subsection (k)
of section 103 of division S of Public Law 116–260 (42 U.S.C.
7675).
(3) COMPETITIVE GRANTS.—In addition to amounts other-
wise available, there is appropriated to the Administrator of
the Environmental Protection Agency for fiscal year 2022, out
of any money in the Treasury not otherwise appropriated,
$15,000,000, to remain available until September 30, 2026,
for competitive grants for reclaim and innovative destruction
technologies under subsections (a) through (i) and subsection
(k) of section 103 of division S of Public Law 116–260 (42
U.S.C. 7675).
(b) ADMINISTRATION OF FUNDS.—Of the funds made available
pursuant to subsection (a)(3), the Administrator of the Environ-
mental Protection Agency shall reserve 5 percent for administrative
costs necessary to carry out activities pursuant to such subsection.
SEC. 60110. FUNDING FOR ENFORCEMENT TECHNOLOGY AND PUBLIC
INFORMATION.
(a) COMPLIANCE MONITORING.—In addition to amounts other-
wise available, there is appropriated to the Administrator of the
Environmental Protection Agency for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, $18,000,000,
to remain available until September 30, 2031, to update the
Integrated Compliance Information System of the Environmental
Protection Agency and any associated systems, necessary informa-
tion technology infrastructure, or public access software tools to
ensure access to compliance data and related information.
(b) COMMUNICATIONS WITH ICIS.—In addition to amounts
otherwise available, there is appropriated to the Administrator
of the Environmental Protection Agency for fiscal year 2022, out
of any money in the Treasury not otherwise appropriated,
$3,000,000, to remain available until September 30, 2031, for grants
to States, Indian tribes, and air pollution control agencies (as such
terms are defined in section 302 of the Clean Air Act (42 U.S.C.
7602)) to update their systems to ensure communication with the
Integrated Compliance Information System of the Environmental
Protection Agency and any associated systems.
(c) INSPECTION SOFTWARE.—In addition to amounts otherwise
available, there is appropriated to the Administrator of the Environ-
mental Protection Agency for fiscal year 2022, out of any money
H. R. 5376—255
in the Treasury not otherwise appropriated, $4,000,000, to remain
available until September 30, 2031—
(1) to acquire or update inspection software for use by
the Environmental Protection Agency, States, Indian tribes,
and air pollution control agencies (as such terms are defined
in section 302 of the Clean Air Act (42 U.S.C. 7602)); or
(2) to acquire necessary devices on which to run such
inspection software.
SEC. 60111. GREENHOUSE GAS CORPORATE REPORTING.
(a) IN GENERAL.—In addition to amounts otherwise available,
there is appropriated to the Administrator of the Environmental
Protection Agency for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $5,000,000, to remain avail-
able until September 30, 2031, for the Environmental Protection
Agency to support—
(1) enhanced standardization and transparency of corporate
climate action commitments and plans to reduce greenhouse
gas emissions;
(2) enhanced transparency regarding progress toward
meeting such commitments and implementing such plans; and
(3) progress toward meeting such commitments and imple-
menting such plans.
(b) DEFINITION OF GREENHOUSE GAS.—In this section, the term
‘‘greenhouse gas’’ means the air pollutants carbon dioxide,
hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and
sulfur hexafluoride.
SEC. 60112. ENVIRONMENTAL PRODUCT DECLARATION ASSISTANCE.
(a) IN GENERAL.—In addition to amounts otherwise available,
there is appropriated to the Administrator of the Environmental
Protection Agency for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $250,000,000, to remain avail-
able until September 30, 2031, to develop and carry out a program
to support the development, enhanced standardization and trans-
parency, and reporting criteria for environmental product declara-
tions that include measurements of the embodied greenhouse gas
emissions of the material or product associated with all relevant
stages of production, use, and disposal, and conform with inter-
national standards, for construction materials and products by—
(1) providing grants to businesses that manufacture
construction materials and products for developing and
verifying environmental product declarations, and to States,
Indian Tribes, and nonprofit organizations that will support
such businesses;
(2) providing technical assistance to businesses that manu-
facture construction materials and products in developing and
verifying environmental product declarations, and to States,
Indian Tribes, and nonprofit organizations that will support
such businesses; and
(3) carrying out other activities that assist in measuring,
reporting, and steadily reducing the quantity of embodied
carbon of construction materials and products.
(b) ADMINISTRATIVE COSTS.—Of the amounts made available
under this section, the Administrator of the Environmental Protec-
tion Agency shall reserve 5 percent for administrative costs nec-
essary to carry out this section.
(c) DEFINITIONS.—In this section:
H. R. 5376—256
(1) GREENHOUSE GAS.—The term ‘‘greenhouse gas’’ means
the air pollutants carbon dioxide, hydrofluorocarbons, methane,
nitrous oxide, perfluorocarbons, and sulfur hexafluoride.
(2) STATE.—The term ‘‘State’’ has the meaning given to
that term in section 302(d) of the Clean Air Act (42 U.S.C.
7602(d)).
SEC. 60113. METHANE EMISSIONS REDUCTION PROGRAM.
The Clean Air Act is amended by inserting after section 135
of such Act, as added by section 60107 of this Act, the following:
‘‘SEC. 136. METHANE EMISSIONS AND WASTE REDUCTION INCENTIVE
PROGRAM FOR PETROLEUM AND NATURAL GAS SYSTEMS.
‘‘(a) INCENTIVES FOR METHANE MITIGATION AND MONITORING.—
In addition to amounts otherwise available, there is appropriated
to the Administrator for fiscal year 2022, out of any money in
the Treasury not otherwise appropriated, $850,000,000, to remain
available until September 30, 2028—
‘‘(1) for grants, rebates, contracts, loans, and other activities
of the Environmental Protection Agency for the purposes of
providing financial and technical assistance to owners and
operators of applicable facilities to prepare and submit green-
house gas reports under subpart W of part 98 of title 40,
Code of Federal Regulations;
‘‘(2) for grants, rebates, contracts, loans, and other activities
of the Environmental Protection Agency authorized under sub-
sections (a) through (c) of section 103 for methane emissions
monitoring;
‘‘(3) for grants, rebates, contracts, loans, and other activities
of the Environmental Protection Agency for the purposes of
providing financial and technical assistance to reduce methane
and other greenhouse gas emissions from petroleum and nat-
ural gas systems, mitigate legacy air pollution from petroleum
and natural gas systems, and provide funding for—
‘‘(A) improving climate resiliency of communities and
petroleum and natural gas systems;
‘‘(B) improving and deploying industrial equipment and
processes that reduce methane and other greenhouse gas
emissions and waste;
‘‘(C) supporting innovation in reducing methane and
other greenhouse gas emissions and waste from petroleum
and natural gas systems;
‘‘(D) permanently shutting in and plugging wells on
non-Federal land;
‘‘(E) mitigating health effects of methane and other
greenhouse gas emissions, and legacy air pollution from
petroleum and natural gas systems in low-income and dis-
advantaged communities; and
‘‘(F) supporting environmental restoration; and
‘‘(4) to cover all direct and indirect costs required to admin-
ister this section, prepare inventories, gather empirical data,
and track emissions.
‘‘(b) INCENTIVES FOR METHANE MITIGATION FROM CONVEN-
TIONAL WELLS.—In addition to amounts otherwise available, there
is appropriated to the Administrator for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated,
$700,000,000, to remain available until September 30, 2028, for
H. R. 5376—257
activities described in paragraphs (1) through (4) of subsection
(a) at marginal conventional wells.
‘‘(c) WASTE EMISSIONS CHARGE.—The Administrator shall
impose and collect a charge on methane emissions that exceed
an applicable waste emissions threshold under subsection (f) from
an owner or operator of an applicable facility that reports more
than 25,000 metric tons of carbon dioxide equivalent of greenhouse
gases emitted per year pursuant to subpart W of part 98 of title
40, Code of Federal Regulations, regardless of the reporting
threshold under that subpart.
‘‘(d) APPLICABLE FACILITY.—For purposes of this section, the
term ‘applicable facility’ means a facility within the following
industry segments, as defined in subpart W of part 98 of title
40, Code of Federal Regulations:
‘‘(1) Offshore petroleum and natural gas production.
‘‘(2) Onshore petroleum and natural gas production.
‘‘(3) Onshore natural gas processing.
‘‘(4) Onshore natural gas transmission compression.
‘‘(5) Underground natural gas storage.
‘‘(6) Liquefied natural gas storage.
‘‘(7) Liquefied natural gas import and export equipment.
‘‘(8) Onshore petroleum and natural gas gathering and
boosting.
‘‘(9) Onshore natural gas transmission pipeline.
‘‘(e) CHARGE AMOUNT.—The amount of a charge under sub-
section (c) for an applicable facility shall be equal to the product
obtained by multiplying—
‘‘(1) the number of metric tons of methane emissions
reported pursuant to subpart W of part 98 of title 40, Code
of Federal Regulations, for the applicable facility that exceed
the applicable annual waste emissions threshold listed in sub-
section (f) during the previous reporting period; and
‘‘(2)(A) $900 for emissions reported for calendar year 2024;
‘‘(B) $1,200 for emissions reported for calendar year 2025;
or
‘‘(C) $1,500 for emissions reported for calendar year 2026
and each year thereafter.
‘‘(f) WASTE EMISSIONS THRESHOLD.—
‘‘(1) PETROLEUM AND NATURAL GAS PRODUCTION.—With
respect to imposing and collecting the charge under subsection
(c) for an applicable facility in an industry segment listed
in paragraph (1) or (2) of subsection (d), the Administrator
shall impose and collect the charge on the reported metric
tons of methane emissions from such facility that exceed—
‘‘(A) 0.20 percent of the natural gas sent to sale from
such facility; or
‘‘(B) 10 metric tons of methane per million barrels
of oil sent to sale from such facility, if such facility sent
no natural gas to sale.
‘‘(2) NONPRODUCTION PETROLEUM AND NATURAL GAS SYS-
TEMS.—With respect to imposing and collecting the charge
under subsection (c) for an applicable facility in an industry
segment listed in paragraph (3), (6), (7), or (8) of subsection
(d), the Administrator shall impose and collect the charge on
the reported metric tons of methane emissions that exceed
0.05 percent of the natural gas sent to sale from or through
such facility.
H. R. 5376—258
‘‘(3) NATURAL GAS TRANSMISSION.—With respect to imposing
and collecting the charge under subsection (c) for an applicable
facility in an industry segment listed in paragraph (4), (5),
or (9) of subsection (d), the Administrator shall impose and
collect the charge on the reported metric tons of methane
emissions that exceed 0.11 percent of the natural gas sent
to sale from or through such facility.
‘‘(4) COMMON OWNERSHIP OR CONTROL.—In calculating the
total emissions charge obligation for facilities under common
ownership or control, the Administrator shall allow for the
netting of emissions by reducing the total obligation to account
for facility emissions levels that are below the applicable thresh-
olds within and across all applicable segments identified in
subsection (d).
‘‘(5) EXEMPTION.—Charges shall not be imposed pursuant
to paragraph (1) on emissions that exceed the waste emissions
threshold specified in such paragraph if such emissions are
caused by unreasonable delay, as determined by the Adminis-
trator, in environmental permitting of gathering or trans-
mission infrastructure necessary for offtake of increased volume
as a result of methane emissions mitigation implementation.
‘‘(6) EXEMPTION FOR REGULATORY COMPLIANCE.—
‘‘(A) IN GENERAL.—Charges shall not be imposed pursu-
ant to subsection (c) on an applicable facility that is subject
to and in compliance with methane emissions requirements
pursuant to subsections (b) and (d) of section 111 upon
a determination by the Administrator that—
‘‘(i) methane emissions standards and plans pursu-
ant to subsections (b) and (d) of section 111 have
been approved and are in effect in all States with
respect to the applicable facilities; and
‘‘(ii) compliance with the requirements described
in clause (i) will result in equivalent or greater emis-
sions reductions as would be achieved by the proposed
rule of the Administrator entitled ‘Standards of
Performance for New, Reconstructed, and Modified
Sources and Emissions Guidelines for Existing Sources:
Oil and Natural Gas Sector Climate Review’ (86 Fed.
Reg. 63110 (November 15, 2021)), if such rule had
been finalized and implemented.
‘‘(B) RESUMPTION OF CHARGE.—If the conditions in
clause (i) or (ii) of subparagraph (A) cease to apply after
the Administrator has made the determination in that
subparagraph, the applicable facility will again be subject
to the charge under subsection (c) beginning in the first
calendar year in which the conditions in either clause (i)
or (ii) of that subparagraph are no longer met.
‘‘(7) PLUGGED WELLS.—Charges shall not be imposed with
respect to the emissions rate from any well that has been
permanently shut-in and plugged in the previous year in accord-
ance with all applicable closure requirements, as determined
by the Administrator.
‘‘(g) PERIOD.—The charge under subsection (c) shall be imposed
and collected beginning with respect to emissions reported for cal-
endar year 2024 and for each year thereafter.
H. R. 5376—259
‘‘(h) REPORTING.—Not later than 2 years after the date of enact-
ment of this section, the Administrator shall revise the require-
ments of subpart W of part 98 of title 40, Code of Federal Regula-
tions, to ensure the reporting under such subpart, and calculation
of charges under subsections (e) and (f) of this section, are based
on empirical data, including data collected pursuant to subsection
(a)(4), accurately reflect the total methane emissions and waste
emissions from the applicable facilities, and allow owners and opera-
tors of applicable facilities to submit empirical emissions data,
in a manner to be prescribed by the Administrator, to demonstrate
the extent to which a charge under subsection (c) is owed.
‘‘(i) DEFINITION OF GREENHOUSE GAS.—In this section, the term
‘greenhouse gas’ means the air pollutants carbon dioxide,
hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and
sulfur hexafluoride.’’.
SEC. 60114. CLIMATE POLLUTION REDUCTION GRANTS.
The Clean Air Act is amended by inserting after section 136
of such Act, as added by section 60113 of this Act, the following:
‘‘SEC. 137. GREENHOUSE GAS AIR POLLUTION PLANS AND
IMPLEMENTATION GRANTS.
‘‘(a) APPROPRIATIONS.—
‘‘(1) GREENHOUSE GAS AIR POLLUTION PLANNING GRANTS.—
In addition to amounts otherwise available, there is appro-
priated to the Administrator for fiscal year 2022, out of any
amounts in the Treasury not otherwise appropriated,
$250,000,000, to remain available until September 30, 2031,
to carry out subsection (b).
‘‘(2) GREENHOUSE GAS AIR POLLUTION IMPLEMENTATION
GRANTS.—In addition to amounts otherwise available, there
is appropriated to the Administrator for fiscal year 2022, out
of any amounts in the Treasury not otherwise appropriated,
$4,750,000,000, to remain available until September 30, 2026,
to carry out subsection (c).
‘‘(3) ADMINISTRATIVE COSTS.—Of the funds made available
under paragraph (2), the Administrator shall reserve 3 percent
for administrative costs necessary to carry out this section,
to provide technical assistance to eligible entities, to develop
a plan that could be used as a model by grantees in developing
a plan under subsection (b), and to model the effects of plans
described in this section.
‘‘(b) GREENHOUSE GAS AIR POLLUTION PLANNING GRANTS.—
The Administrator shall make a grant to at least one eligible
entity in each State for the costs of developing a plan for the
reduction of greenhouse gas air pollution to be submitted with
an application for a grant under subsection (c). Each such plan
shall include programs, policies, measures, and projects that will
achieve or facilitate the reduction of greenhouse gas air pollution.
Not later than 270 days after the date of enactment of this section,
the Administrator shall publish a funding opportunity announce-
ment for grants under this subsection.
‘‘(c) GREENHOUSE GAS AIR POLLUTION REDUCTION IMPLEMENTA-
TION GRANTS.—
‘‘(1) IN GENERAL.—The Administrator shall competitively
award grants to eligible entities to implement plans developed
under subsection (b).
H. R. 5376—260
‘‘(2) APPLICATION.—To apply for a grant under this sub-
section, an eligible entity shall submit to the Administrator
an application at such time, in such manner, and containing
such information as the Administrator shall require, which
such application shall include information regarding the degree
to which greenhouse gas air pollution is projected to be reduced
in total and with respect to low-income and disadvantaged
communities.
‘‘(3) TERMS AND CONDITIONS.—The Administrator shall
make funds available to a grantee under this subsection in
such amounts, upon such a schedule, and subject to such condi-
tions based on its performance in implementing its plan sub-
mitted under this section and in achieving projected greenhouse
gas air pollution reduction, as determined by the Administrator.
‘‘(d) DEFINITIONS.—In this section:
‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible entity’ means—
‘‘(A) a State;
‘‘(B) an air pollution control agency;
‘‘(C) a municipality;
‘‘(D) an Indian tribe; and
‘‘(E) a group of one or more entities listed in subpara-
graphs (A) through (D).
‘‘(2) GREENHOUSE GAS.—The term ‘greenhouse gas’ means
the air pollutants carbon dioxide, hydrofluorocarbons, methane,
nitrous oxide, perfluorocarbons, and sulfur hexafluoride.’’.
SEC. 60115. ENVIRONMENTAL PROTECTION AGENCY EFFICIENT,
ACCURATE, AND TIMELY REVIEWS.
In addition to amounts otherwise available, there is appro-
priated to the Environmental Protection Agency for fiscal year
2022, out of any money in the Treasury not otherwise appropriated,
$40,000,000, to remain available until September 30, 2026, to pro-
vide for the development of efficient, accurate, and timely reviews
for permitting and approval processes through the hiring and
training of personnel, the development of programmatic documents,
the procurement of technical or scientific services for reviews, the
development of environmental data or information systems, stake-
holder and community engagement, the purchase of new equipment
for environmental analysis, and the development of geographic
information systems and other analysis tools, techniques, and guid-
ance to improve agency transparency, accountability, and public
engagement.
SEC. 60116. LOW-EMBODIED CARBON LABELING FOR CONSTRUCTION
MATERIALS.
(a) IN GENERAL.—In addition to amounts otherwise available,
there is appropriated to the Administrator of the Environmental
Protection Agency for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $100,000,000, to remain avail-
able until September 30, 2026, for necessary administrative costs
of the Administrator of the Environmental Protection Agency to
carry out this section and to develop and carry out a program,
in consultation with the Administrator of the Federal Highway
Administration for construction materials used in transportation
projects and the Administrator of General Services for construction
materials used for Federal buildings, to identify and label construc-
tion materials and products that have substantially lower levels
of embodied greenhouse gas emissions associated with all relevant
H. R. 5376—261
stages of production, use, and disposal, as compared to estimated
industry averages of similar materials or products, as determined
by the Administrator of the Environmental Protection Agency, based
on—
(1) environmental product declarations; or
(2) determinations by State agencies, as verified by the
Administrator of the Environmental Protection Agency.
(b) DEFINITION OF GREENHOUSE GAS.—In this section, the term
‘‘greenhouse gas’’ means the air pollutants carbon dioxide,
hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and
sulfur hexafluoride.
Subtitle B—Hazardous Materials
SEC. 60201. ENVIRONMENTAL AND CLIMATE JUSTICE BLOCK GRANTS.
The Clean Air Act is amended by inserting after section 137,
as added by subtitle A of this title, the following:
‘‘SEC. 138. ENVIRONMENTAL AND CLIMATE JUSTICE BLOCK GRANTS.
‘‘(a) APPROPRIATION.—In addition to amounts otherwise avail-
able, there is appropriated to the Administrator for fiscal year
2022, out of any money in the Treasury not otherwise appro-
priated—
‘‘(1) $2,800,000,000 to remain available until September
30, 2026, to award grants for the activities described in sub-
section (b); and
‘‘(2) $200,000,000 to remain available until September 30,
2026, to provide technical assistance to eligible entities related
to grants awarded under this section.
‘‘(b) GRANTS.—
‘‘(1) IN GENERAL.—The Administrator shall use amounts
made available under subsection (a)(1) to award grants for
periods of up to 3 years to eligible entities to carry out activities
described in paragraph (2) that benefit disadvantaged commu-
nities, as defined by the Administrator.
‘‘(2) ELIGIBLE ACTIVITIES.—An eligible entity may use a
grant awarded under this subsection for—
‘‘(A) community-led air and other pollution monitoring,
prevention, and remediation, and investments in low- and
zero-emission and resilient technologies and related infra-
structure and workforce development that help reduce
greenhouse gas emissions and other air pollutants;
‘‘(B) mitigating climate and health risks from urban
heat islands, extreme heat, wood heater emissions, and
wildfire events;
‘‘(C) climate resiliency and adaptation;
‘‘(D) reducing indoor toxics and indoor air pollution;
or
‘‘(E) facilitating engagement of disadvantaged commu-
nities in State and Federal advisory groups, workshops,
rulemakings, and other public processes.
‘‘(3) ELIGIBLE ENTITIES.—In this subsection, the term
‘eligible entity’ means—
‘‘(A) a partnership between—
‘‘(i) an Indian tribe, a local government, or an
institution of higher education; and
H. R. 5376—262
‘‘(ii) a community-based nonprofit organization;
‘‘(B) a community-based nonprofit organization; or
‘‘(C) a partnership of community-based nonprofit
organizations.
‘‘(c) ADMINISTRATIVE COSTS.—The Administrator shall reserve
7 percent of the amounts made available under subsection (a)
for administrative costs to carry out this section.
‘‘(d) DEFINITION OF GREENHOUSE GAS.—In this section, the
term ‘greenhouse gas’ means the air pollutants carbon dioxide,
hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and
sulfur hexafluoride.’’.
Subtitle C—United States Fish and Wildlife
Service
SEC. 60301. ENDANGERED SPECIES ACT RECOVERY PLANS.
In addition to amounts otherwise available, there is appro-
priated to the United States Fish and Wildlife Service for fiscal
year 2022, out of any money in the Treasury not otherwise appro-
priated, $125,000,000, to remain available until expended, for the
purposes of developing and implementing recovery plans under
paragraphs (1), (3), and (4) of subsection (f) of section 4 of the
Endangered Species Act of 1973 (16 U.S.C. 1533(f)).
SEC. 60302. FUNDING FOR THE UNITED STATES FISH AND WILDLIFE
SERVICE TO ADDRESS WEATHER EVENTS.
(a) IN GENERAL.—In addition to amounts otherwise available,
there is appropriated to the United States Fish and Wildlife Service
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $121,250,000, to remain available until September
30, 2026, to make direct expenditures, award grants, and enter
into contracts and cooperative agreements for the purposes of
rebuilding and restoring units of the National Wildlife Refuge
System and State wildlife management areas by—
(1) addressing the threat of invasive species;
(2) increasing the resiliency and capacity of habitats and
infrastructure to withstand weather events; and
(3) reducing the amount of damage caused by weather
events.
(b) ADMINISTRATIVE COSTS.—In addition to amounts otherwise
available, there is appropriated to the United States Fish and
Wildlife Service for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $3,750,000, to remain avail-
able until September 30, 2026, for necessary administrative
expenses associated with carrying out this section.
Subtitle D—Council on Environmental
Quality
SEC. 60401. ENVIRONMENTAL AND CLIMATE DATA COLLECTION.
In addition to amounts otherwise available, there is appro-
priated to the Chair of the Council on Environmental Quality for
fiscal year 2022, out of any money in the Treasury not otherwise
H. R. 5376—263
appropriated, $32,500,000, to remain available until September 30,
2026—
(1) to support data collection efforts relating to—
(A) disproportionate negative environmental harms
and climate impacts; and
(B) cumulative impacts of pollution and temperature
rise;
(2) to establish, expand, and maintain efforts to track dis-
proportionate burdens and cumulative impacts and provide aca-
demic and workforce support for analytics and informatics infra-
structure and data collection systems; and
(3) to support efforts to ensure that any mapping or
screening tool is accessible to community-based organizations
and community members.
SEC. 60402. COUNCIL ON ENVIRONMENTAL QUALITY EFFICIENT AND
EFFECTIVE ENVIRONMENTAL REVIEWS.
In addition to amounts otherwise available, there is appro-
priated to the Chair of the Council on Environmental Quality for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $30,000,000, to remain available until September 30,
2026, to carry out the Council on Environmental Quality’s functions
and for the purposes of training personnel, developing programmatic
environmental documents, and developing tools, guidance, and tech-
niques to improve stakeholder and community engagement.
Subtitle E—Transportation and
Infrastructure
SEC. 60501. NEIGHBORHOOD ACCESS AND EQUITY GRANT PROGRAM.
(a) IN GENERAL.—Chapter 1 of title 23, United States Code,
is amended by adding at the end the following:
‘‘§ 177. Neighborhood access and equity grant program
‘‘(a) IN GENERAL.—In addition to amounts otherwise available,
there is appropriated for fiscal year 2022, out of any money in
the Treasury not otherwise appropriated, $1,893,000,000, to remain
available until September 30, 2026, to the Administrator of the
Federal Highway Administration for competitive grants to eligible
entities described in subsection (b)—
‘‘(1) to improve walkability, safety, and affordable transpor-
tation access through projects that are context-sensitive—
‘‘(A) to remove, remediate, or reuse a facility described
in subsection (c)(1);
‘‘(B) to replace a facility described in subsection (c)(1)
with a facility that is at-grade or lower speed;
‘‘(C) to retrofit or cap a facility described in subsection
(c)(1);
‘‘(D) to build or improve complete streets, multiuse
trails, regional greenways, or active transportation net-
works and spines; or
‘‘(E) to provide affordable access to essential destina-
tions, public spaces, or transportation links and hubs;
‘‘(2) to mitigate or remediate negative impacts on the
human or natural environment resulting from a facility
H. R. 5376—264
described in subsection (c)(2) in a disadvantaged or underserved
community through—
‘‘(A) noise barriers to reduce impacts resulting from
a facility described in subsection (c)(2);
‘‘(B) technologies, infrastructure, and activities to
reduce surface transportation-related greenhouse gas emis-
sions and other air pollution;
‘‘(C) natural infrastructure, pervious, permeable, or
porous pavement, or protective features to reduce or man-
age stormwater run-off resulting from a facility described
in subsection (c)(2);
‘‘(D) infrastructure and natural features to reduce or
mitigate urban heat island hot spots in the transportation
right-of-way or on surface transportation facilities; or
‘‘(E) safety improvements for vulnerable road users;
and
‘‘(3) for planning and capacity building activities in dis-
advantaged or underserved communities to—
‘‘(A) identify, monitor, or assess local and ambient air
quality, emissions of transportation greenhouse gases, hot
spot areas of extreme heat or elevated air pollution, gaps
in tree canopy coverage, or flood prone transportation infra-
structure;
‘‘(B) assess transportation equity or pollution impacts
and develop local anti-displacement policies and community
benefit agreements;
‘‘(C) conduct predevelopment activities for projects
eligible under this subsection;
‘‘(D) expand public participation in transportation plan-
ning by individuals and organizations in disadvantaged
or underserved communities; or
‘‘(E) administer or obtain technical assistance related
to activities described in this subsection.
‘‘(b) ELIGIBLE ENTITIES DESCRIBED.—An eligible entity referred
to in subsection (a) is—
‘‘(1) a State;
‘‘(2) a unit of local government;
‘‘(3) a political subdivision of a State;
‘‘(4) an entity described in section 207(m)(1)(E);
‘‘(5) a territory of the United States;
‘‘(6) a special purpose district or public authority with
a transportation function;
‘‘(7) a metropolitan planning organization (as defined in
section 134(b)(2)); or
‘‘(8) with respect to a grant described in subsection (a)(3),
in addition to an eligible entity described in paragraphs (1)
through (7), a nonprofit organization or institution of higher
education that has entered into a partnership with an eligible
entity described in paragraphs (1) through (7).
‘‘(c) FACILITY DESCRIBED.—A facility referred to in subsection
(a) is—
‘‘(1) a surface transportation facility for which high speeds,
grade separation, or other design factors create an obstacle
to connectivity within a community; or
‘‘(2) a surface transportation facility which is a source
of air pollution, noise, stormwater, or other burden to a dis-
advantaged or underserved community.
H. R. 5376—265
‘‘(d) INVESTMENT IN ECONOMICALLY DISADVANTAGED COMMU-
NITIES.—
‘‘(1) IN GENERAL.—In addition to amounts otherwise avail-
able, there is appropriated for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated,
$1,262,000,000, to remain available until September 30, 2026,
to the Administrator of the Federal Highway Administration
to provide grants for projects in communities described in para-
graph (2) for the same purposes and administered in the same
manner as described in subsection (a).
‘‘(2) COMMUNITIES DESCRIBED.—A community referred to
in paragraph (1) is a community that—
‘‘(A) is economically disadvantaged, underserved, or
located in an area of persistent poverty;
‘‘(B) has entered or will enter into a community benefits
agreement with representatives of the community;
‘‘(C) has an anti-displacement policy, a community land
trust, or a community advisory board in effect; or
‘‘(D) has demonstrated a plan for employing local resi-
dents in the area impacted by the activity or project pro-
posed under this section.
‘‘(e) ADMINISTRATION.—
‘‘(1) IN GENERAL.—A project carried out under subsection
(a) or (d) shall be treated as a project on a Federal-aid highway.
‘‘(2) COMPLIANCE WITH EXISTING REQUIREMENTS.—Funds
made available for a grant under this section and administered
by or through a State department of transportation shall be
expended in compliance with the U.S. Department of Transpor-
tation’s Disadvantaged Business Enterprise Program.
‘‘(f) COST SHARE.—The Federal share of the cost of an activity
carried out using a grant awarded under this section shall be
not more than 80 percent, except that the Federal share of the
cost of a project in a disadvantaged or underserved community
may be up to 100 percent.
‘‘(g) TECHNICAL ASSISTANCE.—In addition to amounts otherwise
available, there is appropriated for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, $50,000,000,
to remain available until September 30, 2026, to the Administrator
of the Federal Highway Administration for—
‘‘(1) guidance, technical assistance, templates, training, or
tools to facilitate efficient and effective contracting, design,
and project delivery by units of local government;
‘‘(2) subgrants to units of local government to build capacity
of such units of local government to assume responsibilities
to deliver surface transportation projects; and
‘‘(3) operations and administration of the Federal Highway
Administration.
‘‘(h) LIMITATIONS.—Amounts made available under this section
shall not—
‘‘(1) be subject to any restriction or limitation on the total
amount of funds available for implementation or execution of
programs authorized for Federal-aid highways; and
‘‘(2) be used for a project for additional through travel
lanes for single-occupant passenger vehicles.’’.
H. R. 5376—266
(b) CLERICAL AMENDMENT.—The analysis for chapter 1 of title
23, United States Code, is amended by adding at the end the
following:
‘‘177. Neighborhood access and equity grant program.’’.
SEC. 60502. ASSISTANCE FOR FEDERAL BUILDINGS.
In addition to amounts otherwise available, there is appro-
priated for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, $250,000,000, to remain available until
September 30, 2031, to be deposited in the Federal Buildings Fund
established under section 592 of title 40, United States Code, for
measures necessary to convert facilities of the Administrator of
General Services to high-performance green buildings (as defined
in section 401 of the Energy Independence and Security Act of
2007 (42 U.S.C. 17061)).
SEC. 60503. USE OF LOW-CARBON MATERIALS.
(a) APPROPRIATION.—In addition to amounts otherwise avail-
able, there is appropriated for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $2,150,000,000, to
remain available until September 30, 2026, to be deposited in
the Federal Buildings Fund established under section 592 of title
40, United States Code, to acquire and install materials and prod-
ucts for use in the construction or alteration of buildings under
the jurisdiction, custody, and control of the General Services
Administration that have substantially lower levels of embodied
greenhouse gas emissions associated with all relevant stages of
production, use, and disposal as compared to estimated industry
averages of similar materials or products, as determined by the
Administrator of the Environmental Protection Agency.
(b) DEFINITION OF GREENHOUSE GAS.—In this section, the term
‘‘greenhouse gas’’ means the air pollutants carbon dioxide,
hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and
sulfur hexafluoride.
SEC. 60504. GENERAL SERVICES ADMINISTRATION EMERGING TECH-
NOLOGIES.
In addition to amounts otherwise available, there is appro-
priated to the Administrator of General Services for fiscal year
2022, out of any money in the Treasury not otherwise appropriated,
$975,000,000, to remain available until September 30, 2026, to
be deposited in the Federal Buildings Fund established under sec-
tion 592 of title 40, United States Code, for emerging and sustain-
able technologies, and related sustainability and environmental pro-
grams.
SEC. 60505. ENVIRONMENTAL REVIEW IMPLEMENTATION FUNDS.
(a) IN GENERAL.—Chapter 1 of title 23, United States Code,
is further amended by adding at the end the following:
‘‘§ 178. Environmental review implementation funds
‘‘(a) ESTABLISHMENT.—In addition to amounts otherwise avail-
able, for fiscal year 2022, there is appropriated to the Administrator,
out of any money in the Treasury not otherwise appropriated,
$100,000,000, to remain available until September 30, 2026, for
the purpose of facilitating the development and review of documents
for the environmental review process for proposed projects
through—
H. R. 5376—267
‘‘(1) the provision of guidance, technical assistance, tem-
plates, training, or tools to facilitate an efficient and effective
environmental review process for surface transportation
projects and any administrative expenses of the Federal High-
way Administration to conduct activities described in this sec-
tion; and
‘‘(2) providing funds made available under this subsection
to eligible entities—
‘‘(A) to build capacity of such eligible entities to conduct
environmental review processes;
‘‘(B) to facilitate the environmental review process for
proposed projects by—
‘‘(i) defining the scope or study areas;
‘‘(ii) identifying impacts, mitigation measures, and
reasonable alternatives;
‘‘(iii) preparing planning and environmental
studies and other documents prior to and during the
environmental review process, for potential use in the
environmental review process in accordance with
applicable statutes and regulations;
‘‘(iv) conducting public engagement activities; and
‘‘(v) carrying out permitting or other activities,
as the Administrator determines to be appropriate,
to support the timely completion of an environmental
review process required for a proposed project; and
‘‘(C) for administrative expenses of the eligible entity
to conduct any of the activities described in subparagraphs
(A) and (B).
‘‘(b) COST SHARE.—
‘‘(1) IN GENERAL.—The Federal share of the cost of an
activity carried out under this section by an eligible entity
shall be not more than 80 percent.
‘‘(2) SOURCE OF FUNDS.—The non-Federal share of the cost
of an activity carried out under this section by an eligible
entity may be satisfied using funds made available to the
eligible entity under any other Federal, State, or local grant
program.
‘‘(c) DEFINITIONS.—In this section:
‘‘(1) ADMINISTRATOR.—The term ‘Administrator’ means the
Administrator of the Federal Highway Administration.
‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible entity’ means—
‘‘(A) a State;
‘‘(B) a unit of local government;
‘‘(C) a political subdivision of a State;
‘‘(D) a territory of the United States;
‘‘(E) an entity described in section 207(m)(1)(E);
‘‘(F) a recipient of funds under section 203; or
‘‘(G) a metropolitan planning organization (as defined
in section 134(b)(2)).
‘‘(3) ENVIRONMENTAL REVIEW PROCESS.—The term ‘environ-
mental review process’ has the meaning given the term in
section 139(a)(5).
‘‘(4) PROPOSED PROJECT.—The term ‘proposed project’
means a surface transportation project for which an environ-
mental review process is required.’’.
H. R. 5376—268
(b) CLERICAL AMENDMENT.—The analysis for chapter 1 of title
23, United States Code, is further amended by adding at the end
the following:
‘‘178. Environmental review implementation funds.’’.
SEC. 60506. LOW-CARBON TRANSPORTATION MATERIALS GRANTS.
(a) IN GENERAL.—Chapter 1 of title 23, United States Code,
is further amended by adding at the end the following:
‘‘§ 179. Low-carbon transportation materials grants
‘‘(a) FEDERAL HIGHWAY ADMINISTRATION APPROPRIATION.—In
addition to amounts otherwise available, there is appropriated for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $2,000,000,000, to remain available until September
30, 2026, to the Administrator to reimburse or provide incentives
to eligible recipients for the use, in projects, of construction mate-
rials and products that have substantially lower levels of embodied
greenhouse gas emissions associated with all relevant stages of
production, use, and disposal as compared to estimated industry
averages of similar materials or products, as determined by the
Administrator of the Environmental Protection Agency, and for
the operations and administration of the Federal Highway Adminis-
tration to carry out this section.
‘‘(b) REIMBURSEMENT OF INCREMENTAL COSTS; INCENTIVES.—
‘‘(1) IN GENERAL.—The Administrator shall, subject to the
availability of funds, either reimburse or provide incentives
to eligible recipients that use low-embodied carbon construction
materials and products on a project funded under this title.
‘‘(2) REIMBURSEMENT AND INCENTIVE AMOUNTS.—
‘‘(A) INCREMENTAL AMOUNT.—The amount of
reimbursement under paragraph (1) shall be equal to the
incrementally higher cost of using such materials relative
to the cost of using traditional materials, as determined
by the eligible recipient and verified by the Administrator.
‘‘(B) INCENTIVE AMOUNT.—The amount of an incentive
under paragraph (1) shall be equal to 2 percent of the
cost of using low-embodied carbon construction materials
and products on a project funded under this title.
‘‘(3) FEDERAL SHARE.—If a reimbursement or incentive is
provided under paragraph (1), the total Federal share payable
for the project for which the reimbursement or incentive is
provided shall be up to 100 percent.
‘‘(4) LIMITATIONS.—
‘‘(A) IN GENERAL.—The Administrator shall only pro-
vide a reimbursement or incentive under paragraph (1)
for a project on a—
‘‘(i) Federal-aid highway;
‘‘(ii) tribal transportation facility;
‘‘(iii) Federal lands transportation facility; or
‘‘(iv) Federal lands access transportation facility.
‘‘(B) OTHER RESTRICTIONS.—Amounts made available
under this section shall not be subject to any restriction
or limitation on the total amount of funds available for
implementation or execution of programs authorized for
Federal-aid highways.
‘‘(C) SINGLE OCCUPANT PASSENGER VEHICLES.—Funds
made available under this section shall not be used for
H. R. 5376—269
projects that result in additional through travel lanes for
single occupant passenger vehicles.
‘‘(5) MATERIALS IDENTIFICATION.—The Administrator shall
review the low-embodied carbon construction materials and
products identified by the Administrator of the Environmental
Protection Agency and shall identify low-embodied carbon
construction materials and products—
‘‘(A) appropriate for use in projects eligible under this
title; and
‘‘(B) eligible for reimbursement or incentives under
this section.
‘‘(c) DEFINITIONS.—In this section:
‘‘(1) ADMINISTRATOR.—The term ‘Administrator’ means the
Administrator of the Federal Highway Administration.
‘‘(2) ELIGIBLE RECIPIENT.—The term ‘eligible recipient’
means—
‘‘(A) a State;
‘‘(B) a unit of local government;
‘‘(C) a political subdivision of a State;
‘‘(D) a territory of the United States;
‘‘(E) an entity described in section 207(m)(1)(E);
‘‘(F) a recipient of funds under section 203;
‘‘(G) a metropolitan planning organization (as defined
in section 134(b)(2)); or
‘‘(H) a special purpose district or public authority with
a transportation function.
‘‘(3) GREENHOUSE GAS.—The term ‘greenhouse gas’ means
the air pollutants carbon dioxide, hydrofluorocarbons, methane,
nitrous oxide, perfluorocarbons, and sulfur hexafluoride.’’.
(b) CLERICAL AMENDMENT.—The analysis for chapter 1 of title
23, United States Code, is further amended by adding at the end
the following:
‘‘179. Low-carbon transportation materials grants.’’.
TITLE VII—COMMITTEE ON HOMELAND
SECURITY AND GOVERNMENTAL AF-
FAIRS
SEC. 70001. DHS OFFICE OF CHIEF READINESS SUPPORT OFFICER.
In addition to the amounts otherwise available, there is appro-
priated to the Secretary of Homeland Security for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated,
$500,000,000, to remain available until September 30, 2028, for
the Office of the Chief Readiness Support Officer to carry out
sustainability and environmental programs.
SEC. 70002. UNITED STATES POSTAL SERVICE CLEAN FLEETS.
In addition to amounts otherwise available, there is appro-
priated to the United States Postal Service for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated,
the following amounts, to be deposited into the Postal Service
Fund established under section 2003 of title 39, United States
Code:
(1) $1,290,000,000, to remain available through September
30, 2031, for the purchase of zero-emission delivery vehicles.
H. R. 5376—270
(2) $1,710,000,000, to remain available through September
30, 2031, for the purchase, design, and installation of the req-
uisite infrastructure to support zero-emission delivery vehicles
at facilities that the United States Postal Service owns or
leases from non-Federal entities.
SEC. 70003. UNITED STATES POSTAL SERVICE OFFICE OF INSPECTOR
GENERAL.
In addition to amounts otherwise available, there is appro-
priated to the Office of Inspector General of the United States
Postal Service for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, $15,000,000, to remain available
through September 30, 2031, to support oversight of United States
Postal Service activities implemented pursuant to this Act.
SEC. 70004. GOVERNMENT ACCOUNTABILITY OFFICE OVERSIGHT.
In addition to amounts otherwise available, there is appro-
priated to the Comptroller General of the United States for fiscal
year 2022, out of any money in the Treasury not otherwise appro-
priated, $25,000,000, to remain available until September 30, 2031,
for necessary expenses of the Government Accountability Office
to support the oversight of—
(1) the distribution and use of funds appropriated under
this Act; and
(2) whether the economic, social, and environmental
impacts of the funds described in paragraph (1) are equitable.
SEC. 70005. OFFICE OF MANAGEMENT AND BUDGET OVERSIGHT.
In addition to amounts otherwise available, there are appro-
priated to the Director of the Office of Management and Budget
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $25,000,000, to remain available until September 30,
2026, for necessary expenses to—
(1) oversee the implementation of this Act; and
(2) track labor, equity, and environmental standards and
performance.
SEC. 70006. FEMA BUILDING MATERIALS PROGRAM.
Through September 30, 2026, the Administrator of the Federal
Emergency Management Agency may provide financial assistance
under sections 203(h), 404(a), and 406(b) of the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5133(h),
42 U.S.C. 5170c(a), 42 U.S.C. 5172(b)) for—
(1) costs associated with low-carbon materials; and
(2) incentives that encourage low-carbon and net-zero
energy projects.
SEC. 70007. FEDERAL PERMITTING IMPROVEMENT STEERING COUNCIL
ENVIRONMENTAL REVIEW IMPROVEMENT FUND MANDA-
TORY FUNDING.
In addition to amounts otherwise available, there is appro-
priated to the Federal Permitting Improvement Steering Council
Environmental Review Improvement Fund, out of any money in
the Treasury not otherwise appropriated, $350,000,000 for fiscal
year 2023, to remain available through September 30, 2031.
H. R. 5376—271
TITLE VIII—COMMITTEE ON INDIAN
AFFAIRS
SEC. 80001. TRIBAL CLIMATE RESILIENCE.
(a) TRIBAL CLIMATE RESILIENCE AND ADAPTATION.—In addition
to amounts otherwise available, there is appropriated to the Director
of the Bureau of Indian Affairs for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, $220,000,000,
to remain available until September 30, 2031, for Tribal climate
resilience and adaptation programs.
(b) BUREAU OF INDIAN AFFAIRS FISH HATCHERIES.—In addition
to amounts otherwise available, there is appropriated to the Director
of the Bureau of Indian Affairs for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, $10,000,000,
to remain available until September 30, 2031, for fish hatchery
operations and maintenance programs of the Bureau of Indian
Affairs.
(c) ADMINISTRATION.—In addition to amounts otherwise avail-
able, there is appropriated to the Director of the Bureau of Indian
Affairs for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, $5,000,000, to remain available until
September 30, 2031, for the administrative costs of carrying out
this section.
(d) COST-SHARING AND MATCHING REQUIREMENTS.—None of the
funds provided by this section shall be subject to cost-sharing or
matching requirements.
(e) SMALL AND NEEDY PROGRAM.—Amounts made available
under this section shall be excluded from the calculation of funds
received by those Tribal governments that participate in the ‘‘Small
and Needy’’ program.
(f) DISTRIBUTION; USE OF FUNDS.—Amounts made available
under this section that are distributed to Indian Tribes and Tribal
organizations for services pursuant to a self-determination contract
(as defined in subsection (j) of section 4 of the Indian Self-Deter-
mination and Education Assistance Act (25 U.S.C. 5304(j))) or a
self-governance compact entered into pursuant to subsection (a)
of section 404 of the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 5364(a))—
(1) shall be distributed on a 1-time basis;
(2) shall not be part of the amount required by subsections
(a) through (b) of section 106 of the Indian Self-Determination
and Education Assistance Act (25 U.S.C. 5325(a)–(b)); and
(3) shall only be used for the purposes identified under
the applicable subsection.
SEC. 80002. NATIVE HAWAIIAN CLIMATE RESILIENCE.
(a) NATIVE HAWAIIAN CLIMATE RESILIENCE AND ADAPTATION.—
In addition to amounts otherwise available, there is appropriated
to the Senior Program Director of the Office of Native Hawaiian
Relations for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, $23,500,000, to remain available until
September 30, 2031, to carry out, through financial assistance,
technical assistance, direct expenditure, grants, contracts, or
cooperative agreements, climate resilience and adaptation activities
that serve the Native Hawaiian Community.
H. R. 5376—272
(b) ADMINISTRATION.—In addition to amounts otherwise avail-
able, there is appropriated to the Senior Program Director of the
Office of Native Hawaiian Relations for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated, $1,500,000,
to remain available until September 30, 2031, for the administrative
costs of carrying out this section.
(c) COST-SHARING AND MATCHING REQUIREMENTS.—None of the
funds provided by this section shall be subject to cost-sharing or
matching requirements.
SEC. 80003. TRIBAL ELECTRIFICATION PROGRAM.
(a) TRIBAL ELECTRIFICATION PROGRAM.—In addition to amounts
otherwise available, there is appropriated to the Director of the
Bureau of Indian Affairs for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $145,500,000, to remain
available until September 30, 2031, for—
(1) the provision of electricity to unelectrified Tribal homes
through zero-emissions energy systems;
(2) transitioning electrified Tribal homes to zero-emissions
energy systems; and
(3) associated home repairs and retrofitting necessary to
install the zero-emissions energy systems authorized under
paragraphs (1) and (2).
(b) ADMINISTRATION.—In addition to amounts otherwise avail-
able, there is appropriated to the Director of the Bureau of Indian
Affairs for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, $4,500,000, to remain available until
September 30, 2031, for the administrative costs of carrying out
this section.
(c) COST-SHARING AND MATCHING REQUIREMENTS.—None of the
funds provided by this section shall be subject to cost-sharing or
matching requirements.
(d) SMALL AND NEEDY PROGRAM.—Amounts made available
under this section shall be excluded from the calculation of funds
received by those Tribal governments that participate in the ‘‘Small
and Needy’’ program.
(e) DISTRIBUTION; USE OF FUNDS.—Amounts made available
under this section that are distributed to Indian Tribes and Tribal
organizations for services pursuant to a self-determination contract
(as defined in subsection (j) of section 4 of the Indian Self-Deter-
mination and Education Assistance Act (25 U.S.C. 5304(j))) or a
self-governance compact entered into pursuant to subsection (a)
of section 404 of the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 5364(a))—
(1) shall be distributed on a 1-time basis;
(2) shall not be part of the amount required by subsections
(a) through (b) of section 106 of the Indian Self-Determination
and Education Assistance Act (25 U.S.C. 5325(a)–(b)); and
(3) shall only be used for the purposes identified under
the applicable subsection.
SEC. 80004. EMERGENCY DROUGHT RELIEF FOR TRIBES.
(a) EMERGENCY DROUGHT RELIEF FOR TRIBES.—In addition to
amounts otherwise available, there is appropriated to the Commis-
sioner of the Bureau of Reclamation for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated, $12,500,000,
to remain available until September 30, 2026, for near-term drought
relief actions to mitigate drought impacts for Indian Tribes that
H. R. 5376—273
are impacted by the operation of a Bureau of Reclamation water
project, including through direct financial assistance to address
drinking water shortages and to mitigate the loss of Tribal trust
resources.
(b) COST-SHARING AND MATCHING REQUIREMENTS.—None of the
funds provided by this section shall be subject to cost-sharing or
matching requirements.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.
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