[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4153 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 4153
To advance clean power technology development and use through
innovation and clean energy standards, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 24, 2021
Mr. McKinley (for himself, Mr. Schrader, Ms. Tenney, and Mr. Costa)
introduced the following bill; which was referred to the Committee on
Energy and Commerce, and in addition to the Committees on Ways and
Means, Science, Space, and Technology, Transportation and
Infrastructure, Oversight and Reform, and Financial Services, for a
period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To advance clean power technology development and use through
innovation and clean energy standards, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Clean Energy Future Through
Innovation Act of 2021''.
SEC. 2. DEFINITIONS; TABLE OF CONTENTS.
(a) Definitions.--In this Act:
(1) Commission.--The term ``Commission'' means the Federal
Energy Regulatory Commission.
(2) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title.
Sec. 2. Definitions; table of contents.
TITLE I--CARBON CAPTURE, UTILIZATION, AND STORAGE
Subtitle A--Research, Development, and Demonstration for Carbon
Capture, Utilization, and Storage Technologies
Sec. 101. Fossil energy objectives.
Sec. 102. Carbon capture technologies.
Sec. 103. Carbon storage validation and testing.
Sec. 104. Carbon utilization.
Sec. 105. Advanced energy systems.
Subtitle B--Deployment of Carbon Capture, Utilization, and Storage With
Commercial-Scale Electricity Generation Facilities
Sec. 111. Deployment of carbon capture, utilization, and storage
technology with commercial-scale
electricity generation facilities.
Subtitle C--Federal Support for Commercial Deployment of Carbon
Capture, Utilization, and Storage
Sec. 121. Enhancement of carbon dioxide sequestration credit.
Sec. 122. Reform of loan guarantee program.
Sec. 123. Private activity bonds for carbon dioxide capture facilities.
Sec. 124. Extension of publicly traded partnership ownership structure.
Sec. 125. Production tax credit for certain electricity generation
using carbon capture utilization and
storage.
Sec. 126. Elective payment of credit.
Sec. 127. Allowance of the carbon oxide sequestration credit against
the base erosion minimum tax.
Sec. 128. Modification of merchant banking investment regulation.
Subtitle D--Support for Carbon Dioxide Transportation and Sequestration
Infrastructure
Sec. 131. Facilities for carbon dioxide transportation and
sequestration.
Sec. 132. Carbon dioxide sequestration utilities.
TITLE II--INNOVATION IN RENEWABLE ENERGY, ENERGY EFFICIENCY, AND
STORAGE
Sec. 201. Establishment of technology performance and cost targets.
Sec. 202. Advanced innovation and commercialization program.
Sec. 203. Updating manufactured homes.
Sec. 204. Investment tax credits for energy battery storage, offshore
wind, and certain hydropower technologies.
Sec. 205. Extension of production tax credit for solar and on-shore
wind.
Sec. 206. Renewal of qualifying advanced energy project credit.
Sec. 207. Performance-based tax credits for commercial and residential
buildings.
Sec. 208. Extension of publicly traded partnership ownership structure
to renewable energy projects.
Sec. 209. Manufacturer credit for high-efficiency heat pumps and heat
pump water heaters.
Sec. 210. Other authorizations of appropriations.
TITLE III--EXISTING AND ADVANCED NUCLEAR POWER PLANTS
Sec. 301. Zero-emissions credit program.
Sec. 302. Investment tax credit for nuclear energy property.
Sec. 303. Expanding Federal clean electricity purchasing requirements.
Sec. 304. Modernizing the Nuclear Regulatory Commission.
Sec. 305. Demonstration and early deployment of advanced nuclear
reactors.
Sec. 306. Authorization of appropriations for loan guarantees for
advanced nuclear facilities.
Sec. 307. Expanding the production tax credit for nuclear power.
TITLE IV--CLEAN ELECTRICITY STANDARD
Sec. 401. Certification of cost-effective market penetration of clean
electricity technologies.
Sec. 402. Federal clean electricity standard.
Sec. 403. Regional clean electricity planning models.
Sec. 404. Stand-by emission performance standards.
TITLE V--MISCELLANEOUS
Sec. 501. Additional requirements.
Sec. 502. Utilization of qualified apprentices by construction
contractors.
Sec. 503. Requirements applicable to tax incentive programs.
TITLE I--CARBON CAPTURE, UTILIZATION, AND STORAGE
Subtitle A--Research, Development, and Demonstration for Carbon
Capture, Utilization, and Storage Technologies
SEC. 101. FOSSIL ENERGY OBJECTIVES.
Section 961 of the Energy Policy Act of 2005 (42 U.S.C. 16291) is
amended--
(1) in subsection (a)(2), by adding at the end the
following subparagraph:
``(M) Preventing, predicting, monitoring, and
mitigating the unintended leaking of carbon dioxide or
other fossil fuel-related emissions into the
atmosphere.''; and
(2) by amending subsection (b) to read as follows:
``(b) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary to carry out fossil energy research,
development, demonstration, and commercial application activities,
including activities authorized under this subtitle, $2,200,000,000 for
each of fiscal years 2022 through 2031.''.
SEC. 102. CARBON CAPTURE TECHNOLOGIES.
Section 962 of the Energy Policy Act of 2005 (42 U.S.C. 16292) is
amended--
(1) in subsection (e)--
(A) in paragraph (2)--
(i) by striking ``and'' at the end of
subparagraph (B);
(ii) by striking the period at the end of
subparagraph (C) and inserting ``; and''; and
(iii) by adding at the end the following:
``(D) test technologies that represent the scale of
technology development beyond laboratory testing, but
not yet advanced to testing under operational
conditions at commercial scale.'';
(B) in paragraph (3)(C)--
(i) in clause (i), by inserting
``precombustion, postcombustion, or oxy-
combustion'' after ``facilities for'';
(ii) in clause (ii), by striking ``; or''
and inserting a semicolon;
(iii) in clause (iii), by striking the
period at the end and inserting a semicolon;
and
(iv) by adding at the end the following:
``(iv) have capability to test integration
of carbon capture technologies with utility-
scale power plants; or
``(v) have commercial market participants,
including equipment and technology suppliers
and power generators, involved in the proposed
Center.''; and
(C) by redesignating paragraph (7) as paragraph
(8), and inserting after paragraph (6) the following:
``(7) Cost sharing.--The Secretary shall require cost
sharing under this subsection in accordance with section
988(b).''; and
(2) by adding at the end the following:
``(f) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary to carry out this section $600,000,000
for each of fiscal years 2022 through 2031.''.
SEC. 103. CARBON STORAGE VALIDATION AND TESTING.
Section 963 of the Energy Policy Act of 2005 (42 U.S.C. 16293) is
amended--
(1) in subsection (b), by adding at the end the following:
``(4) Federal data collection.--The Secretary, in
coordination with other Federal agencies including the United
States Geological Survey, shall continue and expand ongoing
Federal data collection and analysis activities related to
carbon dioxide storage, economics, and spatial relationships on
a local and regional scale, in coordination with State and
regional entities.''; and
(2) by amending subsection (g) to read as follows:
``(g) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary to carry out this section--
``(1) $200,000,000 for fiscal year 2021; and
``(2) $250,000,000 for each of fiscal years 2022 through
2031.''.
SEC. 104. CARBON UTILIZATION.
Section 969A(d) of the Energy Policy Act of 2005 (42 U.S.C.
16298a(d)) is amended to read as follows:
``(d) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary to carry out this section--
``(1) $54,000,000 for fiscal year 2021; and
``(2) $75,000,000 for each of fiscal years 2022 through
2031.''.
SEC. 105. ADVANCED ENERGY SYSTEMS.
(a) Advanced Energy Systems.--Subtitle F of title IX of the Energy
Policy Act of 2005 (42 U.S.C. 16291 et seq.) is further amended by
adding at the end the following:
``SEC. 969E. ADVANCED ENERGY SYSTEMS.
``(a) In General.--The Secretary shall carry out a program of
research, development, demonstration, and commercial application of
technologies that represent a significant change in the methods used to
generate electricity from fuels and that will enable a step change in
performance, efficiency, and cost of electricity, and that reduce
emissions from fossil fuel power generation in the following areas:
``(1) Supercritical carbon dioxide, with an emphasis on
developing directly fired and indirectly fired cycles in the
next 10 years.
``(2) Advanced combustion systems, including oxy-combustion
systems and chemical looping.
``(3) Gasification systems to enable carbon capture,
improve efficiency, and reduce capital and operating costs.
``(4) Thermal cycling with ramping or rapid black start
capabilities that do not compromise efficiency or environmental
performance.
``(5) Small-scale and modular technologies with reduced
carbon dioxide outputs or carbon capture that can support
incremental power generation capacity needs.
``(6) Turbines, boilers, fuel cells, or other systems that
utilize hydrogen or ammonia derived from coal or natural gas to
make electricity.
``(7) Systems that remove 98 percent or more of the carbon
dioxide from the emissions of a power plant.
``(b) Priority.--In carrying out the program under subsection (a),
the Secretary shall give priority to potentially transformational
technologies that would enable very substantial improvements in
performance, efficiency, or cost of electricity as compared to the
technology in existence on the date of enactment of this section.
``(c) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary to carry out this section $1,275,000,000
for each of fiscal years 2022 through 2031.''.
(b) Technical Amendment.--The table of contents for the Energy
Policy Act of 2005 (Public Law 109-58; 119 Stat. 600) is amended by
adding at the end of the items relating to subtitle F of title IX the
following:
``Sec. 969E. Advanced energy systems.''.
Subtitle B--Deployment of Carbon Capture, Utilization, and Storage With
Commercial-Scale Electricity Generation Facilities
SEC. 111. DEPLOYMENT OF CARBON CAPTURE, UTILIZATION, AND STORAGE
TECHNOLOGY WITH COMMERCIAL-SCALE ELECTRICITY GENERATION
FACILITIES.
(a) In General.--Subtitle B of title IV of the Energy Policy Act of
2005 (42 U.S.C. 15971 et seq.) is amended by adding after section 417
the following:
``SEC. 418. FEDERAL SUPPORT FOR DEPLOYMENT OF CARBON CAPTURE,
UTILIZATION, AND STORAGE WITH ELECTRICITY GENERATION.
``(a) In General.--Subject to the limitations in subsection (b),
the Secretary shall support the deployment and use of carbon capture,
utilization, and storage at eligible power systems by entering into
contracts for differences with owners or operators of eligible power
systems to provide price certainty for the sale of the electricity
generated by, or carbon dioxide captured by, such eligible power
systems to third parties.
``(b) Limitations.--The Secretary may not enter into contracts for
differences under subsection (a)--
``(1) with a term of more than 30 years;
``(2) for the output of eligible power systems with a
cumulative electricity generating capacity of more than 11
gigawatts; and
``(3) in a cumulative amount projected to have a value
exceeding $10,000,000,000.
``(c) Application.--
``(1) In general.--The owner or operator of an eligible
power system seeking to enter into a contract for differences
under subsection (a) shall submit to the Secretary an
application at such time and in such manner as the Secretary
may require.
``(2) Criteria.--In evaluating such an application, the
Secretary shall consider technical, financial, and other
factors that the Secretary determines appropriate.
``(d) Prioritization.--In implementing subsection (a), the
Secretary shall prioritize supporting--
``(1) the use of carbon capture, utilization, and storage
at eligible power systems covering diverse fossil fuel types
and technologies, including first-of-a-kind technology for
carbon capture, utilization, and storage capacity; and
``(2) eligible power systems with at least 5.5 gigawatts of
cumulative electricity generating capacity that will be in
operation by 2030, and ensure that the remaining eligible power
systems receiving support will be under construction by not
later than 2030.
``(e) Definitions.--In this section:
``(1) Power system.--The term `power system' means a
commercial-scale electricity generating unit that utilizes
fossil fuels to generate electricity that is provided to the
electric grid or directly to a consumer.
``(2) Eligible power system.--The term `eligible power
system' means a power system that--
``(A) is equipped with carbon capture technology,
or otherwise produces a separate carbon dioxide stream
that is suitable for utilization or storage;
``(B) is designed to capture carbon dioxide that
would otherwise be emitted to the atmosphere; and
``(C) will utilize or store the captured carbon
dioxide, or has contracted with one or more other
entities to utilize or store the captured carbon
dioxide.''.
(b) Clerical Amendment.--The table of contents for the Energy
Policy Act of 2005 is amended by adding after the item relating to
section 417 the following:
``Sec. 418. Federal support for deployment of carbon capture,
utilization, and storage with electricity
generation.''.
Subtitle C--Federal Support for Commercial Deployment of Carbon
Capture, Utilization, and Storage
SEC. 121. ENHANCEMENT OF CARBON DIOXIDE SEQUESTRATION CREDIT.
(a) Extension of Credit Period.--Section 45Q(a) of the Internal
Revenue Code of 1986 is amended by striking ``12-year'' each place it
appears and inserting ``20-year''.
(b) Extension of Qualified Facility Construction Beginning Date.--
Section 45Q(d)(1) of such Code is amended by striking ``January 1,
2026'' and inserting ``January 1, 2036''.
(c) Enhancement of Credit Value.--
(1) Section 45Q(b)(1)(A)(ii)(I) is amended by striking
``$50'' and inserting ``$85''.
(2) Section 45Q(b)(1)(A)(ii)(II) is amended by striking
``$35'' and inserting ``$70''.
(d) Effective Date.--The amendments made by this section shall
apply to carbon dioxide captured after December 31, 2020.
SEC. 122. REFORM OF LOAN GUARANTEE PROGRAM.
Section 1703 of the Energy Policy Act of 2005 (42 U.S.C. 16513) is
amended--
(1) by striking subsection (e) and inserting the following:
``(e) Qualification of Facilities Receiving Tax Credits or
Financial Assistance.--Notwithstanding any other provision of law, a
project that receives tax credits or other financial assistance for
clean coal technology shall not be disqualified from receiving a
guarantee under this subchapter.''; and
(2) by inserting the following new subsection after
subsection (e):
``(f) Implemention.--In implementing the authority under this
section with respect to loan guarantees issued after the date of
enactment of the Clean Energy Future Through Innovation Act of 2021,
the Secretary shall--
``(1) adjust fees and application requirements to the scale
of a project to ensure that the costs of preparing and
submitting an application are not an undue barrier to
participation by smaller, lower risk projects;
``(2) ensure that program credit rating requirements do
not, as applied, act as an obstacle to participation in the
loan guarantee program by first-of-a-kind projects, consistent
with the purpose of the loan guarantee program to enable debt
financing for first-of-a-kind projects that would not otherwise
have access to commercial debt markets; and
``(3) for first-of-a-kind projects, cover the cost of the
guarantee with appropriated funds rather than requiring the
borrower to pay some or all of the cost of the guarantee under
section 1702(b).''.
SEC. 123. PRIVATE ACTIVITY BONDS FOR CARBON DIOXIDE CAPTURE FACILITIES.
(a) In General.--Section 142(a) of the Internal Revenue Code of
1986 is amended by striking ``or'' at the end of paragraph (14), by
striking the period at the end of paragraph (15) and inserting ``,
or'', and by adding at the end the following new paragraph:
``(16) qualified carbon dioxide capture facilities.''.
(b) Qualified Carbon Dioxide Capture Facility.--Section 142 of such
Code is amended by adding at the end the following new subsections:
``(n) Qualified Carbon Dioxide Capture Facility.--
``(1) In general.--For purposes of subsection (a)(16), the
term `qualified carbon dioxide capture facility' means the
eligible components of an industrial carbon dioxide facility.
``(2) Definitions.--For purposes of this subsection--
``(A) Eligible component.--The term `eligible
component' means, with respect to any industrial carbon
dioxide facility, any component installed in such
facility that--
``(i) satisfies the requirements under
paragraph (3), and
``(ii)(I) is used for the purpose of
capture, treatment and purification,
compression, transportation, or on-site storage
of carbon dioxide produced by such facility, or
``(II) is integral or functionally related
and subordinate to a process described in
section 48B(c)(2) (determined by substituting
`carbon dioxide' for `carbon monoxide').
``(B) Industrial carbon dioxide facility.--
``(i) In general.--The term `industrial
carbon dioxide facility' means a facility that
emits carbon dioxide (including from any
fugitive emissions source) that is created as a
result of any of the following processes:
``(I) Fuel combustion for
electricity generation or other
purposes.
``(II) Gasification for electricity
generation or other purposes.
``(III) Bioindustrial.
``(IV) Fermentation.
``(V) Any manufacturing industry
described in section 48B(c)(7).
``(ii) Exceptions.--Such term shall not
include--
``(I) any geological gas facility,
or
``(II) any air separation unit that
does not qualify as gasification
equipment or is not a necessary
component of an oxy-fuel combustion
process, a supercritical carbon dioxide
process, or other advanced power
system.
``(iii) Geological gas facility.--The term
`geological gas facility' means a facility
that--
``(I) produces a raw product
consisting of gas or mixed gas and
liquid from a geological formation,
``(II) transports or removes
impurities from such product, or
``(III) separates such product into
its constituent parts.
``(3) Capture and storage requirement.--For purposes of
this subsection--
``(A) In general.--Except as provided in
subparagraph (B), a component shall not be treated as
meeting the requirements of this paragraph with respect
to an industrial carbon dioxide facility unless such
component has a capture and storage percentage that is
at least 65 percent.
``(B) Exception.--In the case of an industrial
carbon dioxide facility with a capture and storage
percentage that is less than 65 percent, a component
with respect to such facility shall not be treated as
meeting the requirements of this paragraph unless the
percentage of the cost of such component that is
financed by tax-exempt bonds is not greater than such
capture and storage percentage.
``(C) Capture and storage percentage.--
``(i) In general.--The capture and storage
percentage shall be an amount, expressed as a
percentage, equal to the quotient of--
``(I) the total metric tons of
carbon dioxide annually captured,
transported, and injected into a
facility for geologic storage, or an
enhanced oil or gas recovery well
followed by geologic storage, divided
by
``(II) the total metric tons of
carbon dioxide which would otherwise be
released into the atmosphere each year
as industrial emission of greenhouse
gas if the component were not installed
in the industrial carbon dioxide
facility.
``(ii) Limited application of eligible
components.--In the case of eligible components
that are designed to capture carbon dioxide
solely from specific sources of emissions or
portions thereof within an industrial carbon
dioxide facility, the capture and storage
percentage under this subparagraph shall be
determined based only on such specific sources
of emissions or portions thereof.
``(o) Other Requirements.--(1) An issue shall not be treated as an
issue under subsection (a) unless each entity that receives some or all
of the proceeds from the issue for construction, alteration or repair
work agrees that such work shall be performed in accordance with the
requirements of subchapter IV of chapter 31 of title 40, United States
Code.
``(2) With respect to enforcement of the requirements in paragraph
(1), rules similar to rules of section 503(c) of the Clean Energy
Future Through Innovation Act of 2021 shall be applied by substituting
`issuer' for `taxpayer'.''.
(c) Volume Cap.--Section 146(g)(4) of such Code is amended by
striking ``paragraph (11) of section 142(a) (relating to high-speed
intercity rail facilities)'' and inserting ``paragraph (11) or
paragraph (16) of section 142(a)''.
(d) Clarification of Private Business Use.--Section 141(b)(6) of
such Code is amended by adding at the end the following new
subparagraph:
``(C) Clarification relating to qualified carbon
dioxide capture facilities.--For purposes of this
subsection, the sale of carbon dioxide produced by a
qualified carbon dioxide capture facility (as defined
in section 142(n)) which is owned by a governmental
unit shall not constitute private business use.''.
(e) Effective Date.--The amendments made by this section shall
apply to obligations issued after the date of enactment of this Act.
SEC. 124. EXTENSION OF PUBLICLY TRADED PARTNERSHIP OWNERSHIP STRUCTURE.
(a) In General.--Section 7704(d)(1)(E) of the Internal Revenue Code
of 1986 is amended--
(1) by striking ``income and gains derived from the
exploration'' and inserting ``income and gains derived from any
of the following:
``(i) The exploration'',
(2) by striking the comma at the end and inserting a
period, and
(3) by adding at the end the following:
``(ii) The production, storage, or
transportation of any fuel which--
``(I) uses carbon dioxide captured
from an anthropogenic source or the
atmosphere as its primary feedstock,
and
``(II) is determined by the
Secretary, in consultation with the
Secretary of Energy and the
Administrator of the Environmental
Protection Agency, to achieve a
reduction of not less than a 60 percent
in lifecycle greenhouse gas emissions
(as defined in section 211(o)(1)(H) of
the Clean Air Act) compared to baseline
lifecycle greenhouse gas emissions (as
defined in section 211(o)(1)(C) of such
Act).
This clause shall not apply to any fuel which
uses as its primary feedstock carbon dioxide
which is deliberately released from naturally-
occurring subsurface springs.
``(iii) The production of any product or
the generation of electric power from a
project--
``(I) which meets the requirements
of subparagraphs (A) and (B) of section
48B(c)(1), and
``(II) not less than 75 percent of
the total carbon dioxide emissions of
which is qualified carbon oxide (as
defined in section 45Q(c)) which is
disposed of or utilized as provided in
paragraph (6).
``(iv) The generation or storage of
electric power (including associated income
from the sale or marketing of energy, capacity,
resource adequacy, and ancillary services)
produced from any power generation facility
which is, or from any power generation unit
within, a qualified facility under section
45Q(d) and not less than 50 percent (30 percent
in the case of a facility or unit placed in
service before January 1, 2017) of the total
carbon dioxide emissions of which is qualified
carbon oxide which is disposed of or used as
provided in paragraph (7).
``(v) The sale of any good or service from
any facility (other than a power generation
facility) which is a qualified facility
described in section 45Q(c) and the captured
qualified carbon oxide (as so defined) of which
is disposed of as provided in paragraph (6).''.
(b) Disposal and Utilization of Captured Carbon Dioxide.--Section
7704(d) of such Code is amended by adding at the end the following new
paragraphs:
``(6) Disposal and utilization of captured carbon
dioxide.--For purposes of clauses (iii)(II) and (iv) of
paragraph (1)(E), carbon dioxide is disposed of or used as
provided in this paragraph if such carbon dioxide is--
``(A) placed into secure geological storage (as
determined under section 45Q(f)(2)),
``(B) used as a tertiary injectant (as defined in
section 45Q(e)(3)) in a qualified enhanced oil or
natural gas recovery project (as defined in section
45Q(e)(2)) and placed into secure geological storage
(as so determined),
``(C) fixed through photosynthesis or
chemosynthesis (including through the growing of algae
or bacteria),
``(D) chemically converted to a material or
chemical compound in which it is securely stored, or
``(E) used for any other purpose which the
Secretary determines has the potential to strengthen or
significantly develop a competitive market for carbon
dioxide captured from man-made sources.
``(7) Other requirements.--(A) Income and gains under
subsection (d)(1)(E) shall not be treated as ``qualifying
income'' under this section unless the publicly traded
partnership provides assurances to the Secretary that any
construction, alteration, or repair work associated with such
income and gains shall be performed in accordance with the
requirements of subchapter IV of chapter 31 of title 40, United
States Code.
``(B) With respect to enforcement of the requirements in
subparagraph (A), rules similar to rules of section 503(c) of
the Clean Energy Future Through Innovation Act of 2021 shall be
applied by substituting `publicly traded partnership' for
`taxpayer'.''.
(c) Effective Date.--The amendments made by this section shall take
effect on the date of the enactment of this Act, in taxable years
ending after such date.
SEC. 125. PRODUCTION TAX CREDIT FOR CERTAIN ELECTRICITY GENERATION
USING CARBON CAPTURE UTILIZATION AND STORAGE.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:
``SEC. 45U. ELECTRICITY PRODUCED USING CARBON CAPTURE UTILIZATION AND
STORAGE TECHNOLOGY.
``(a) General Rule.--For purposes of section 38, the carbon capture
production credit for any taxable year is an amount equal to--
``(1) in the case of a qualified facility using fossil
fuels, the product of--
``(A) the megawatt hours of electricity--
``(i) produced by the taxpayer at a
qualified facility during the 20-year period
beginning on the date the facility was
originally placed in service, and
``(ii) sold by the taxpayer to an unrelated
person during the taxable year, multiplied by
``(B)(i) $30 per megawatt hour in the case of a
qualified facility storing carbon in secure geological
storage, or
``(ii) $24 per megawatt hour in the case of a
qualified facility using captured carbon oxide as a
tertiary injectant in a qualified enhanced oil or
natural gas recovery project, multiplied by
``(C) the discount factor,
``(2) in the case of electricity generation facilities
using exclusively qualified hydrogen, qualified ammonia, or
qualified blends, the product of--
``(A) the megawatt hours of electricity--
``(i) produced by the taxpayer at a
qualified facility during the 20-year period
beginning on the date the facility was
originally placed in service, and
``(ii) sold by the taxpayer to an unrelated
person during the taxable year, multiplied by
``(B) $100 per megawatt hour.
``(b) Definitions.--For purposes of this section:
``(1) Discount factor.--The term `discount factor' means an
amount equal to 90 divided by the annual carbon dioxide
emissions rate expressed in pounds per megawatt-hour for a
qualified facility, except that--
``(A) if the annual carbon dioxide emissions rate
for a qualified facility is less than 90 pounds per
megawatt-hour, the discount factor is equal to 1, and
``(B) if the annual carbon dioxide emissions rate
for a qualified facility is greater 180 pounds per
megawatt-hour, the discount factor is equal to 0.
``(2) Qualified ammonia.--The term `qualified ammonia'
means ammonia fuel produced with less than 17.5 pounds of
carbon dioxide emissions per million Btu of gross fuel heating
value.
``(3) Qualified blend.--The term `qualified blend' means a
blend of qualified hydrogen or qualified ammonia with fossil
fuel in which the fossil fuel provides no more than 30 percent
of the heating value input.
``(4) Qualified facility.--The term `qualified facility'
means an electricity generation plant that--
``(A) is equipped with carbon capture equipment,
the construction of which commenced before January 1,
2033,
``(B) captures carbon oxide using carbon capture
equipment,
``(C) stores captured carbon oxide in secure
geological storage or uses captured carbon oxide as a
tertiary injectant in a qualified enhanced oil or
natural gas recovery project, and
``(D) has not been the basis for a credit received
under section 45Q.
``(5) Qualified hydrogen.--The term `qualified hydrogen'
means hydrogen fuel produced with less than 17.5 pounds of
carbon dioxide emissions per million Btu of gross fuel heating
value.''.
(b) Part of General Business Credit.--Section 38(b) of such Code is
amended by striking ``plus'' at the end of paragraph (32), by striking
the period at the end of paragraph (33) and inserting ``, plus'', and
by adding at the end the following new paragraph:
``(34) the carbon capture production credit under section
45U(a).''.
(c) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 is amended by adding at the end
the following new item:
``Sec. 45U. Electricity produced using carbon capture utilization and
storage technology.''.
(d) Effective Date.--The amendments made by this section shall
apply with respect to electricity produced and sold after the date of
the enactment of this Act.
SEC. 126. ELECTIVE PAYMENT OF CREDIT.
(a) Subchapter B of chapter 65 of the Internal Revenue Code of 1986
is amended by adding at the end the following new section:
``SEC. 6431. ELECTIVE PAYMENT OF CREDITS RELATING TO CARBON OXIDE
SEQUESTRATION.
``(a) Election.--In the case of a taxpayer making an election (at
such time and in such manner as the Secretary may provide) under this
section with respect to any portion of an applicable credit, such
taxpayer shall be treated as making a payment against the tax imposed
by subtitle A for the taxable year equal to the amount of such portion.
``(b) Definitions and Special Rules.--For purposes of this
section--
``(1) Governmental entities treated as taxpayers.--In the
case of an election under this section--
``(A) any State or local government, or a political
subdivision thereof, or
``(B) an Indian Tribal government
shall be treated as a taxpayer for purposes of this section and
determining any applicable credit.
``(2) Applicable credit.--The term `applicable credit'
means each of the following credits that would (without regard
to this section) be determined with respect to the taxpayer:
``(A) A carbon oxide sequestration credit under
section 45Q.
``(B) A carbon capture production credit under
section 45U.
``(3) Indian tribal government.--The term `Indian Tribal
government' shall have the meaning given such term by section
139E.
``(4) Timing.--The payment described in subsection (a)
shall be treated as made on--
``(A) in the case of any government, or political
subdivision, to which paragraph (1) applies 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 subdivision 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
of the return of tax for the taxable year or the date
on which such return is filed.
``(5) Waiver of special rules.--In the case of an election
under this section, the determination of any applicable credit
shall be without regard to paragraphs (3) and (4)(A)(i) of
section 50(b).
``(6) Special rule for mutual or cooperative electric
companies.--In the case of a mutual or cooperative electric
company or an organization described in section 501(c)(12) or
section 1381(a)(2), any income received or accrued in
connection with the credit under this section shall be treated
as an amount collected from members for the sole purpose of
meeting losses and expenses.
``(c) Exclusion From Gross Income.--Gross income of the taxpayer
shall be determined without regard to this section.
``(d) Denial of Double Benefit.--Solely for purposes of section 38,
in the case of a taxpayer making an election under this section, the
applicable credit shall be reduced by the amount of the portion of such
credit with respect to which the taxpayer makes such election.''.
(b) Clerical Amendment.--The table of sections for subchapter B of
chapter 65 is amended by adding at the end the following new item:
``Sec. 6431. Elective payment of credits related to carbon oxide
sequestration.''.
SEC. 127. ALLOWANCE OF THE CARBON OXIDE SEQUESTRATION CREDIT AGAINST
THE BASE EROSION MINIMUM TAX.
(a) In General.--Section 59A(b) of the Internal Revenue Code of
1986 is amended--
(1) in paragraph (1)(B)(ii)(I), by inserting ``and the
carbon dioxide sequestration credit determined under section
45Q'' after ``section 41(a)'', and
(2) in paragraph (1)(B)(i), by inserting ``(other than the
credit allowed under section 38 for the taxable year which is
properly allocable to the credit for carbon oxide sequestration
determined under section 45Q)'' after ``credits allowed under
this chapter''.
(b) Effective Date.--The amendments made by this section shall take
effect as if included in section 41119 of the Bipartisan Budget Act of
2018.
SEC. 128. MODIFICATION OF MERCHANT BANKING INVESTMENT REGULATION.
(a) Extended Holding Period for Carbon Capture Projects.--Section
4(c) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(c)) is
amended by inserting after paragraph (14) the following new paragraph:
``(15) shares owned directly or indirectly in a company
that is the person to whom the credit for carbon oxide
sequestration in section 45Q of the Internal Revenue Code of
1986 is attributable pursuant to subsection (f)(3) of such
section, but such shares shall be disposed of within a period
of time that equals the sum of the number of years in
subsection (a)(3)(A) of such section and the number of years in
the recapture period as defined in such section or regulations
or other guidance prescribed under such section.''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2020.
Subtitle D--Support for Carbon Dioxide Transportation and Sequestration
Infrastructure
SEC. 131. FACILITIES FOR CARBON DIOXIDE TRANSPORTATION AND
SEQUESTRATION.
(a) In General.--Subtitle B of title IV of the Energy Policy Act of
2005 (42 U.S.C. 15971 et seq.) is further amended by adding after
section 418 (as added by this Act) the following:
``SEC. 419. SECURING GEOLOGIC RESERVOIRS FOR STORAGE OF CARBON DIOXIDE.
``(a) In General.--The Secretary shall carry out a program to--
``(1) identify geological formations that are capable of
sequestering, cumulatively, at least 250,000,000 tons of carbon
dioxide with a target cost of less than $10 per ton;
``(2) assess the cost of developing and operating carbon
dioxide sequestration facilities at the geological formations
identified under paragraph (1); and
``(3) support the development of such carbon dioxide
sequestration facilities by providing grants or other
appropriate financial assistance to carbon dioxide
sequestration facility developers to--
``(A) secure property rights that are necessary to
enable carbon dioxide sequestration in such geologic
formations; and
``(B) obtain necessary permits and approval to
enable carbon dioxide sequestration in such geologic
formations.
``(b) Geographic Diversity.--The Secretary shall carry out
subsection (a) with the goal of supporting development of carbon
dioxide sequestration facilities that are capable of storing
significant volumes of carbon dioxide at reasonable costs in each of
the regions covered by the regional carbon sequestration partnerships
established by the Secretary.
``(c) Application.--An entity seeking a grant or other appropriate
financial assistance provided under subsection (a)(3) shall submit to
the Secretary an application at such time and in such manner as the
Secretary may require.
``(d) Cost Sharing.--The Secretary shall consider the activities
described under subsection (a)(3) to be subject to the cost share
requirement for demonstration and commercial application activities
under section 988(c).
``SEC. 420. CARBON DIOXIDE SEQUESTRATION INFRASTRUCTURE DEVELOPMENT.
``(a) In General.--The Secretary shall carry out a program to
provide grants to support--
``(1) the development of carbon dioxide pipeline
infrastructure that is necessary to support the transportation
of the volumes of carbon dioxide that are expected to be
captured at electricity generation facilities to appropriate
sites for long term sequestration; and
``(2) the development of geologic sequestration facilities
that are necessary to support long-term sequestration of the
volumes of carbon dioxide that are expected to be captured at
electricity generation facilities.
``(b) Application.--Applications for a grant provided under this
section shall be submitted at such time and in such manner as the
Secretary may require.
``(c) Priority.--The Secretary shall prioritize providing grants
under subsection (a)(1) to support pipeline infrastructure that is of
significant length and significant throughput capacity.
``(d) Cost Sharing.--The Secretary shall consider the grants
provided under subsection (a) to be subject to the cost share
requirement for demonstration and commercial application activities
under section 988(c).
``(e) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary to carry out this section and section 419
$2,000,000,000 for each of fiscal years 2022 through 2031.''.
(b) Clerical Amendment.--The table of contents for the Energy
Policy Act of 2005 is further amended by adding after the item relating
to section 418 (as added by this Act) the following:
``Sec. 419. Securing geologic reservoirs for storage of carbon dioxide.
``Sec. 420. Carbon dioxide sequestration infrastructure development.''.
SEC. 132. CARBON DIOXIDE SEQUESTRATION UTILITIES.
(a) In General.--The Secretary, in collaboration with the Secretary
of Transportation and the Administrator of the Environmental Protection
Agency, as appropriate, may provide technical assistance to a State
that is seeking to--
(1) establish a government-owned carbon dioxide
sequestration utility; or
(2) regulate a privately owned carbon dioxide sequestration
utility.
(b) Technical Assistance.--Technical assistance provided under
subsection (a) may include--
(1) with respect to a government-owned carbon dioxide
sequestration utility--
(A) conducting engineering studies to support the
development of a carbon dioxide sequestration facility;
and
(B) identifying potential carbon dioxide
transportation routes; and
(2) with respect to State regulation of a privately owned
carbon dioxide sequestration utility--
(A) helping with developing regulations for any
privately owned carbon dioxide sequestration utility,
including with respect to the development of a
permitting system; and
(B) assisting with developing regulations for--
(i) services provided by a privately owned
carbon dioxide sequestration utility; and
(ii) the setting of rates charged for such
services.
(c) Report.--Not later than 1 year after the date of enactment of
this section, the Secretary shall submit to Congress a report that--
(1) characterizes Federal, State, and local regulations
that apply to the development and operation of carbon dioxide
transportation infrastructure and sequestration facilities;
(2) identifies any gaps in applicable regulations that need
to be addressed to ensure the safe and effective operation of
carbon dioxide transportation infrastructure and sequestration
facilities;
(3) evaluates whether regulation of the rates and terms of
service for carbon dioxide transportation service or
sequestration service is necessary to ensure fair access to
such services;
(4) evaluates whether the use of the right of eminent
domain to develop carbon dioxide transportation infrastructure
and sequestration facilities is consistent with the public
interest; and
(5) provides any recommended changes to Federal law that
would support the development and use of carbon dioxide
transportation infrastructure and sequestration facilities
consistent with the public interest.
(d) Carbon Dioxide Sequestration Utility Defined.--The term
``carbon dioxide sequestration utility'' means any organization that
provides carbon dioxide transportation or sequestration service.
TITLE II--INNOVATION IN RENEWABLE ENERGY, ENERGY EFFICIENCY, AND
STORAGE
SEC. 201. ESTABLISHMENT OF TECHNOLOGY PERFORMANCE AND COST TARGETS.
(a) In General.--Not later than 1 year after the date of enactment
of this section, the Secretary shall establish technology performance
and cost targets for three consecutive 5-year periods to address
existing gaps in technology, with the first such period starting on the
date of enactment of this section and the last such period ending on
the date that is 15 years following such date of enactment.
(b) Targets.--Technology and performance cost targets shall be
established for each of the following technology categories:
(1) Advanced renewable power technologies, which include--
(A) large-scale, novel renewable power plants;
(B) renewable hydrogen power plants, including
plants for which the hydrogen comes from renewable
natural gas or biogas;
(C) on-shore or off-shore wind power;
(D) thermal or photovoltaic solar power;
(E) hydropower;
(F) geothermal power;
(G) biomass power; and
(H) advanced renewable energy manufacturing
techniques.
(2) Mechanical, chemical, and thermal energy storage
technologies, which include--
(A) advanced grid-scale energy storage technologies
with storage durations in the range of 10 to 50 hours;
and
(B) grid-scale energy storage projects that can
economically balance electricity supply and demand
across seasons.
(3) Electricity transmission technologies, which include
underground high-voltage direct current electricity
transmission.
(4) Commercial, industrial, and residential energy
efficiency technologies, which include--
(A) retrofit packages that reduce the energy used
by an average single-family home by at least 50 percent
at a cost of no more than $25,000 per such home;
(B) smart heating, ventilation, and air
conditioning control technologies that--
(i) can be used in commercial buildings
that have between 5,000 and 30,000 square feet
of floor area;
(ii) can reduce heating, ventilation, and
air conditioning energy consumption by an
average of at least 20 percent compared to
average commercial buildings;
(iii) yield energy cost savings that can
provide at least a 50 percent annual return on
the original investment; and
(iv) may include a cloud-based information
technology;
(C) those technologies that the Secretary
identifies as having the ability to improve energy
efficiency or reduce emissions in heavy industries,
which include those that produce or refine aluminum,
steel, cement, oil, or fertilizer; and
(D) flexible load technology improvements to reduce
peak demand.
(5) Industrial process and building electrification
technologies, which include--
(A) heat pump space heaters;
(B) heat pump water heaters;
(C) induction stoves; and
(D) advanced industrial process heat technologies.
SEC. 202. ADVANCED INNOVATION AND COMMERCIALIZATION PROGRAM.
(a) In General.--The Secretary, in collaboration with the National
Laboratories, other Federal agencies, and private sector and university
partners as the Secretary determines necessary, shall establish a
program, to be known as the ``Advanced Innovation and Commercialization
Program'', to carry out research, development, and demonstration of
technology that meets the targets established for those technologies
identified in section 201(b).
(b) Early Deployment.--
(1) In general.--The Secretary shall establish a program to
provide grants for early deployment of the technologies
demonstrated under the Advanced Innovation and
Commercialization program under this section.
(2) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $3,000,000,000
for each of fiscal years 2022 through 2031.
(c) Federal Procurement.--
(1) In general.--The Secretary, in collaboration with the
Secretary of Defense and the Administrator of the General
Services Administration, shall establish Federal procurement
goals and deadlines for achieving such goals for those
technologies identified in section 201(b).
(2) Federal energy and advanced technology energy
procurement.--The Secretary, in collaboration with the
Secretary of Defense and the Administrator of General Services,
shall--
(A) through administrative and regulatory actions,
improve Federal procurement of the technologies
described in paragraph (1);
(B) identify and report on barriers to improving
Federal procurement of energy and technologies that
require legislative changes; and
(C) take due regard of the recommendations from the
2016 report entitled ``Secretary of Energy Advisory
Board Report of the Task Force on Federal Energy
Management''.
(d) Authorization of Appropriations.--There are authorized to be
appropriated to carry out subsection (a) the following:
(1) With respect to the advanced renewable energy
technologies projects described in section 201(b)(1),
$2,000,000,000 for each of fiscal years 2022 through 2031.
(2) With respect to the energy storage technologies
projects described in section 201(b)(2), $400,000,000 for each
of fiscal years 2022 through 2031.
(3) With respect to the transmission technologies and
projects described in section 201(b)(3), $600,000,000 for each
of fiscal years 2022 through 2031.
(4) With respect to the commercial, industrial, and
residential energy efficiency technologies described in section
201(b)(4), $1,000,000,000 for each of fiscal years 2022 through
2031.
(5) With respect to the industrial process and building
electrification technologies described in section 201(b)(5),
$1,000,000,000 for each of fiscal years 2022 through 2031.
SEC. 203. UPDATING MANUFACTURED HOMES.
(a) Updating Manufactured Homes.--Not later than one year after the
date of enactment of this section, the Secretary shall establish a
program to provide grants and technical assistance to individuals or
businesses to facilitate the replacement of inefficient manufactured
homes with efficient manufactured homes.
(b) Definitions.--In this section:
(1) Efficient manufactured home.--The term ``efficient
manufactured home'' means a manufactured home for which the
Energy Star label may be used in accordance with section 324A
of the Energy Policy and Conservation Act (42 U.S.C. 6294a).
(2) Inefficient manufactured home.--The term ``inefficient
manufactured home'' means a manufactured home that was
manufactured before June 1976.
(3) Manufactured home.--The term ``manufactured home'' has
the meaning given such term in section 603 of the Housing and
Community Development Act of 1974 (42 U.S.C. 5402).
(c) Authorization.--There is authorized to be appropriated to carry
out this section $2,500,000,000 for each of fiscal years 2022 through
2031, to remain available until expended.
SEC. 204. INVESTMENT TAX CREDITS FOR ENERGY BATTERY STORAGE, OFFSHORE
WIND, AND CERTAIN HYDROPOWER TECHNOLOGIES.
(a) In General.--Section 48(a) of the Internal Revenue Code of 1986
is amended--
(1) by striking subparagraph (5)(F), and
(2) in paragraph (3)(A), by striking ``or'' at the end of
clause (vii), and by adding at the end the following new
clauses:
``(ix) equipment which generates wind
energy from an offshore facility,
``(x) energy storage equipment,
``(xi) eligible hydroelectric equipment, or
``(xii) equipment which generates
geothermal electricity through an enhanced
geothermal system,''.
(b) Allowance of 30 Percent Credit.--
(1) In general.--Section 48(a)(2)(A)(i)(II) of the Internal
Revenue Code of 1986 is amended by striking ``paragraph
(3)(A)(i)'' and inserting ``clause (i), (ix), (x), (xi), or
(xii) of paragraph (3)(A)''.
(2) Phaseout.--Section 48(a)(6) of such Code is amended--
(A) by striking ``solar energy'' in the heading and
inserting ``certain'', and
(B) by striking ``paragraph (3)(A)(i)'' each place
it appears and inserting ``clause (i), (ix), (x), (xi),
or (xii) of paragraph (3)(A)''.
(c) Definitions.--
(1) Energy credit.--Section 48(c) of the Internal Revenue
Code of 1986 is amended by adding at the end the following new
paragraphs:
``(6) Qualified offshore wind property.--
``(A) In general.--The term `qualified offshore
wind property' means an offshore facility using wind to
produce electricity.
``(B) Offshore facility.--The term `offshore
facility' means any facility located in the inland
navigable waters of the United States, including the
Great Lakes, or in the coastal waters of the United
States, including the territorial seas of the United
States, the exclusive economic zone of the United
States, and the outer Continental Shelf of the United
States.
``(7) Energy storage equipment.--The term `energy storage
equipment' means equipment which receives, stores, and delivers
energy using batteries, compressed air, pumped hydropower,
hydrogen storage (including hydrolysis and electrolysis),
thermal energy storage, regenerative fuel cells, flywheels,
capacitors, superconducting magnets, or other technologies
identified by the Secretary in consultation with the Secretary
of Energy, and which has a capacity of not less than 5 kilowatt
hours.
``(8) Eligible hydroelectric equipment.--The term `eligible
hydroelectric equipment' means equipment used for the
generation of electricity installed at a dam which--
``(A) was placed in service before the date of the
enactment of this paragraph and operated for flood
control, navigation, or water supply purposes and did
not produce hydroelectric power prior to the date of
the enactment of this paragraph,
``(B) is part of a project that is licensed by the
Federal Energy Regulatory Commission and meets all
other applicable environmental, licensing, and
regulatory requirements, and
``(C) is operated so that the water surface
elevation at any given location and time that would
have occurred in the absence of the hydroelectric
project is maintained, subject to any license
requirements imposed under applicable law that change
the water surface elevation for the purpose of
improving environmental quality of the affected
waterway.
``(9) Enhanced geothermal system.--The term `enhanced
geothermal system' means a system to extract heat by creating a
subsurface fracture system to which water can be added through
injection wells.''.
(2) Qualifying advanced energy project credit.--Section
48C(c)(1)(A)(i)(IV) of the Internal Revenue Code of 1986 is
amended by inserting``, including through direct air capture or
carbon dioxide removal'' after ``emissions''.
(d) Effective Date.--The amendments made by this section shall
apply to property placed in service after December 31, 2020.
SEC. 205. EXTENSION OF PRODUCTION TAX CREDIT FOR SOLAR AND ON-SHORE
WIND.
(a) Wind.--Section 45(d)(1) of the Internal Revenue Code of 1986 is
amended by striking ``January 1, 2022'' and inserting ``January 1,
2031''.
(b) Solar.--Section 45(d)(4)(A) of such Code is amended by striking
``is placed in service before January 1, 2006'' and inserting ``the
construction of which begins before January 1, 2031''.
(c) Application of Phaseout Percentage to Wind Facilities.--Section
45(b)(5)(D) of such Code is amended by striking ``January 1, 2022'' and
inserting ``January 1, 2031''.
(d) Effective Date.--The amendments made by this section shall
apply to facilities the construction of which begins after December 31,
2020.
SEC. 206. RENEWAL OF QUALIFYING ADVANCED ENERGY PROJECT CREDIT.
(a) In General.--Section 48C(d)(2)(A) of the Internal Revenue Code
of 1986 is amended by striking ``during the 2-year period beginning on
the date the Secretary establishes the program under paragraph (1)''.
(b) Effective Date.--The amendment made by this section shall apply
to applications received after the date of the enactment of this Act.
SEC. 207. PERFORMANCE-BASED TAX CREDITS FOR COMMERCIAL AND RESIDENTIAL
BUILDINGS.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986, as amended by this Act, is
amended by adding at the end the following new section:
``SEC. 45V. DEEP RETROFITS AND ZERO-ENERGY COMMERCIAL AND RESIDENTIAL
BUILDINGS.
``(a) Eligibility for Tax Credit.--For purposes of section 38, in
the case of an eligible taxpayer who places an eligible building in
service, the deep retrofits and zero-energy commercial and residential
buildings credit determined under this section for a taxable year is
the applicable amount with respect to such eligible building.
``(b) Eligible Taxpayer.--
``(1) In general.--For purposes of subsection (a), the term
`eligible taxpayer' means, with respect to an eligible
building--
``(A) for a residential building, the builder, and
``(B) for a commercial building, the building
owner.
``(2) Transfer of credit.--An eligible taxpayer who is a
building owner eligible for a credit under subparagraph (B) of
paragraph (1) may elect to transfer such credit to the
architect, builder, or contractor of such building.
``(3) Eligible building.--
``(A) In general.--For purposes of this subsection,
the term `eligible building' means a building--
``(i) located in the United States,
``(ii) which is at least 50 percent
occupied in the taxable year in the tax credit
is claimed,
``(iii) with respect to which a
certification has been issued for a qualifying
reason pursuant to subsection (c), and
``(iv) with respect to which no credit
under this section has been claimed for the
same qualifying reason in a prior taxable year.
``(B) Qualifying reason.--For purposes of this
paragraph, with respect to an eligible building, the
term `qualifying reason' means such building--
``(i) has undergone a deep energy retrofit,
``(ii) is a zero-energy-ready building, or
``(iii) is a zero-energy building placed in
service at least 12 months prior to the taxable
year in which the credit is claimed.
``(C) Special rule for zero-energy and zero-energy-
ready buildings.--A taxpayer may claim the credit under
this section twice for the same building if--
``(i) the credit is claimed in a taxable
year for the qualifying reason described in
subparagraph (B)(ii), and
``(ii) the credit is claimed in a
succeeding taxable year for the qualifying
reason described in subparagraph (B)(iii).
``(c) Certifications.--
``(1) Deep energy retrofit.--In the case of a building with
respect to which a deep energy retrofit was implemented, such
retrofit shall meet the certification standard of subsection
(b)(3)(A) if it has been completed and certified as a deep
energy retrofit by a registered architect or engineer, or by
another professional authorized by the Secretary of Energy by
rule.
``(2) Zero-energy building.--In the case of a building
which is a zero-energy building, such building shall meet the
certification standard of subsection (b)(3)(A) if the building
has been zero-energy over a span of 12 continuous months with
at least 50 percent occupancy as verified--
``(A) through certification by the Living Buildings
Institute Zero Energy Certification Program,
``(B) through certification by the LEED Zero Energy
Certification Program Verification, or
``(C) by another professional authorized by the
Secretary of Energy by rule.
``(3) Zero-energy-ready building.--In the case of a
building which is a zero-energy-ready building, such building
shall meet the certification standard of subsection (b)(3)(A)--
``(A) in the case of a commercial building or high-
rise residential building, if the taxpayer receives a
certification from registered engineer, architect or
other professional recognized by Secretary of Energy
stating that such building meets the definition of a
zero-energy-ready building under subsection (e)(16)(A),
and
``(B) if such building is a low-rise residential
building--
``(i) if such building has been certified
as described in subsection (e)(16)(B)(i),
``(ii) if the taxpayer receives a
certification from registered engineer,
architect or other professional recognized by
Secretary of Energy stating that such building
meets the definition of a zero-energy-ready
building under subsection (e)(16)(B)(ii).
``(d) Applicable Amount.--For purposes of subsection (a), the
applicable amount shall be determined as follows:
``(1) Zero-energy-ready buildings.--For certified zero-
energy-ready buildings--
``(A) for a residential building with no more than
four dwelling units, $5,000 per dwelling unit,
``(B) for a residential building with five or more
dwelling units, $3,500 per dwelling unit, and
``(C) for a commercial building, $3 per square foot
of floor area.
``(2) Zero-energy buildings.--For certified zero-energy
buildings--
``(A) for a residential building with no more than
four dwelling units, $5,000 per dwelling unit,
``(B) for a residential building with five or more
dwelling units, $3,500 per dwelling unit, and
``(C) for a commercial building that is a zero-
energy building for a period of 12 continuous months
starting after the building is at least 50 percent
occupied, $3 per square foot of floor area, provided
that a zero-energy building may also receive the zero-
energy-ready building incentive if it meets the
criteria for this incentive.
``(3) Deep energy retrofits.--The following tax credit
amounts shall be awarded to buildings upon completion of a deep
energy retrofit--
``(A) for a residential building, $10,000 per
dwelling unit, up to a maximum of $1,000,000 per
building, and
``(B) for a commercial building, $25 per square
foot of floor area, up to a maximum of $2,000,000 per
building.
``(e) Definitions.--In this section:
``(1) Btu.--The term `Btu' means British Thermal Unit.
``(2) Building energy.--The term `building energy' means
energy consumed at the building site as measured at the site
boundary, which includes heating, cooling, ventilation,
domestic hot water, indoor and outdoor lighting, plug loads,
process energy, elevators and conveying systems, and
intrabuilding transportation systems.
``(3) Deep energy retrofit.--The term `deep energy
retrofit' means a project that uses energy efficiency measures
and renewable energy resources to reduce the energy use of an
existing building by at least 50 percent on an annual basis
relative to the most recent 12 month period in which the
building was fully occupied prior to the project, provided that
energy efficiency measures must account for at least 80 percent
of the reduction in energy use.
``(4) Delivered energy.--The term `delivered energy' means
any type of energy that could be bought or sold as building
energy, including electricity, steam, hot or chilled water,
natural gas, biogas, landfill gas, coal, coke, propane,
petroleum and its derivatives, residual fuel oil, alcohol-based
fuels, wood, biomass, and any other material consumed as fuel.
``(5) Exported energy.--The term `exported energy' means
on-site renewable energy supplied through the site boundary and
used outside the site boundary.
``(6) High-rise commercial building.--The term `high-rise
commercial building' means a commercial building of four or
more above grade stories.
``(7) High-rise residential building.--The term `high-rise
residential building' means a multi-family building with four
or more above grade stories.
``(8) kWh.--The term `kWh' means Kilowatt Hour.
``(9) Low-rise residential building.--The term `low-rise
residential building' means a single-family home or multifamily
building with no more than three above grade stories.
``(10) On-site renewable energy.--The term `on-site
renewable energy' means any renewable energy collected and
generated within the site boundary that is used for building
energy, and the excess renewable energy exported outside the
site boundary, provided that any renewable energy certificates
associated with the on-site renewable energy must be retained
or retired by the building owner or lessee to be claimed as on-
site renewable energy.
``(11) Renewable energy.--The term `renewable energy' means
energy generated by biomass, hydro, geothermal, solar, wind,
ocean thermal, wave action, or tidal action resources.
``(12) Renewable energy certificate.--The term `renewable
energy certificate' means a certificate or credit that
represents and conveys the environmental, social, or other
nonpower qualities of one megawatt hour of renewable energy,
and can be sold separately from the underlying physical
electricity associated with the renewable energy resource.
``(13) Site boundary.--The term `site boundary' means the
limits of the building site across which delivered energy and
exported energy are measured.
``(14) Source energy.--The term `source energy' means
building energy plus the energy losses in thermal combustion in
electricity generation resources; and energy losses in
transmission and distribution to the building site.
``(15) Zero-energy building.--The term `zero-energy
building' means a building for which, on a source energy basis,
the actual annual delivered energy is less than or equal to the
on-site renewable exported energy, provided that energy
purchased from off-site and renewable energy generated on-site
and then sold off-site shall be valued at 6000 Btu/kWh.
``(16) Zero-energy-ready building.--The term `zero-energy-
ready building' means a building that--
``(A) if it is a commercial building or high-rise
residential building--
``(i) is in compliance with Standard 90.1-
2019 published by the American Society of
Heating, Refrigerating, and Air Conditioning
Engineers,
``(ii) is in compliance with Appendix CA
(Solar-Ready Zone) of the 2021 International
Energy Conservation Code, and
``(iii) demonstrates that its energy
consumption is at least 30 percent below the
maximum permitted under American Society of
Heating, Refrigerating, and Air Conditioning
Engineers Standard 90.1-2019, as calculated
using the methodology in Appendix G of such
standard, and
``(B) if it is a low-rise residential building--
``(i) has an Energy Rating Index of 40 or
less as calculated using the procedures in
Chapter 3 of the residential section of the
2012 International Energy Conservation Code but
excluding any renewable energy resources in the
calculation, provided that certification of
compliance with the Energy Rating Index
requirement shall be made by a registered
architect or engineer by another professional
authorized by the Secretary of Energy by rule,
``(ii) is in compliance with Appendix RA
(Solar-Ready Zone) of the 2021 International
Energy Conservation Code, and
``(iii) is certified under--
``(I) the Zero Energy Ready Homes
program administered by the Department
of Energy, or
``(II) the Passive House
specifications of the Passive Institute
US or the International Passive House
Institute.
``(f) Denial of Double Benefit.--No credit shall be allowed under
this section for any expense for which a deduction or credit is allowed
under any other provision of this chapter, including under sections
25C, 25D, and 179D.
``(g) Sunset.--The tax credit under this section shall terminate--
``(1) for zero-energy and zero-energy-ready residential
buildings, one year after the Secretary of Energy determines by
rule that such buildings accounted for at least 20 percent of
new residential buildings in the most recent calendar year,
``(2) for zero-energy and zero-energy-ready commercial
buildings, one year after the Secretary of Energy determines by
rule that such buildings accounted for at least 20 percent of
new commercial building construction in the most recent
calendar year,
``(3) for deep energy retrofits to residential buildings,
one year after the Secretary of Energy determines by rule that
at least 10 percent of units at residential buildings have
undergone such retrofits, and
``(4) for deep energy retrofits to commercial buildings,
one year after the Secretary of Energy determines by rule that
at least 10 percent of the floor area of commercial buildings
has undergone such retrofits.
``(h) Rules and Regulations.--Not later than one year after the
date of the enactment of this section, the Secretary, after
consultation with the Secretary of Energy, shall promulgate such
regulations and guidance as are necessary to implement this section.
``(i) Report to Congress.--Not later than two years after enactment
of this section, and each calendar year thereafter, the Secretary shall
report to Congress on the use of tax credits under this section, broken
out by the applicable amount categories in subsection (d), which shall
include--
``(1) the dollar value of tax credits awarded to date and
in the prior calendar year, and
``(2) the number of units at residential buildings and the
number of square feet of floor area in commercial buildings for
which tax credits were awarded to date and in the prior year
calendar year.''.
(b) Conforming Amendments.--
(1) Section 38(b) of the Internal Revenue Code of 1986 is
amended--
(A) in paragraph (33), by striking ``plus'' at the
end,
(B) in paragraph (34), by striking the period at
the end and inserting, ``plus'', and
(C) by adding at the end the following new
paragraph:
``(34) the Deep energy retrofits and zero-energy commercial
and residential buildings credit determined under section
45V(a).''.
(2) The table of sections for subpart D of part IV of
subchapter A of chapter 1 of such Code is amended by adding at
the end the following new item:
``Sec. 45V. Deep retrofits and zero-energy commercial and residential
buildings.''.
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service after December 31, 2021.
SEC. 208. EXTENSION OF PUBLICLY TRADED PARTNERSHIP OWNERSHIP STRUCTURE
TO RENEWABLE ENERGY PROJECTS.
(a) In General.--Section 7704(d)(1)(E) of the Internal Revenue Code
of 1986, as amended by this Act, is amended by adding after clause (v)
the following:
``(vi) The generation of electric power
(including the leasing of tangible personal
property used for such generation) exclusively
using any resource described in section
45(c)(1) or energy property described in
section 48 (determined without regard to any
termination date) or, in the case of a facility
described in paragraph (3) or (7) of section
45(d) (determined without regard to any placed
in service date or date by which construction
of the facility is required to begin), the
accepting or processing of such resource.
``(vii) The sale of electric power,
capacity, resource adequacy, demand response
capabilities, or ancillary services that is
produced or made available from any equipment
or facility (operating as a single unit or as
an aggregation of units) the principal function
of which is to--
``(I) use mechanical, chemical,
electrochemical, hydroelectric, or
thermal processes to store energy that
was generated at one time for
conversion to electricity at a later
time, or
``(II) store thermal energy for
direct use for heating or cooling at a
later time in a manner that avoids the
need to use electricity at that later
time.
``(viii) The generation, storage, or
distribution of thermal energy exclusively
utilizing property described in section
48(c)(3) (determined without regard to
subparagraphs (B) and (D) thereof and without
regard to any placed in service date).
``(ix) The generation, storage, or
distribution of thermal energy exclusively
using any resource described in section
45(c)(1) or energy property described in clause
(i) or (iii) of section 48(a)(3)(A).
``(x) The use of recoverable waste energy,
as defined in section 371(5) of the Energy
Policy and Conservation Act (42 U.S.C.
6341(5)).''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2020.
SEC. 209. MANUFACTURER CREDIT FOR HIGH-EFFICIENCY HEAT PUMPS AND HEAT
PUMP WATER HEATERS.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986, as amended by this Act, is
amended by adding at the end the following new section:
``SEC. 45W. MANUFACTURER CREDIT FOR HIGH-EFFICIENCY HEAT PUMPS AND HEAT
PUMP WATER HEATERS.
``(a) Allowance of Credit.--
``(1) In general.--For purposes of section 38, the energy
efficient heat pump credit determined under this section for
any taxable year is an amount equal to the sum of the credit
amounts determined under paragraph (2) for each type of
qualified energy efficient heat pump produced by the taxpayer
during the calendar year ending with or within the taxable
year.
``(2) Credit amounts.--The credit amount determined for any
type of qualified energy efficient appliance is--
``(A) the applicable amount determined under
subsection (b) with respect to such type, multiplied by
``(B) the eligible production for such type under
subsection (c).
``(b) Applicable Amount.--For purposes of subsection (a):
``(1) Consumer heat pump water heaters.--The applicable
amount is $600 in the case of a consumer heat pump water heater
that is manufactured in one of calendar years 2022 through 2030
and that has a Uniform Energy Factor of 3.3 or more for
electric water heaters and 1.3 or more for gas water heaters.
``(2) Commercial heat pump water heaters.--The applicable
amount is $24 per thousand British Thermal Units of heating
capacity in the case of a commercial heat pump water heater
manufactured in one of calendar years 2022 through 2030 and
that has a Coefficient of Performance of 3.0 or more for
electric water heaters and 1.3 or more for gas water heaters.
``(3) Consumer unitary heat pumps.--The applicable amount
is $1000 in the case of a consumer unitary heat pump that--
``(A) is manufactured in calendar years 2022
through 2030,
``(B) in the case of an electric heat pump meets
either--
``(i) the most recent requirements of the
Energy Star Most Efficient Specification
promulgated by the United States Environmental
Protection Agency before the date of enactment
of this section, or
``(ii) the most recent Cold Climate Air-
Source Heat Pump Specification promulgated by
Northeast Energy Efficiency Partnerships before
the date of enactment of this section, and
``(C) in the case of a gas heat pump, has an Annual
Fuel Utilization Efficiency of 140 percent or more.
``(4) Commercial heat pumps.--The applicable amount is $24
per thousand British Thermal Units of heating capacity measured
at a 17 degree Fahrenheit ambient temperature in the case of a
commercial heat pump that is manufactured in calendar years
2022 through 2030 and that has a Coefficient of Performance of
2.3 or more at a 17 degree Fahrenheit ambient temperature for
electric heat pumps, and 1.2 or more at a 17 degree Fahrenheit
ambient temperature for gas heat pumps.
``(5) Industrial heat pumps.--The applicable amount is $36
per thousand British Thermal Units of heating capacity for heat
pumps with a heating capacity of 2,400 thousand British Thermal
Units or less and $18 per thousand British Thermal Units of
heating capacity for heat pumps with a heating capacity above
2,400 thousand British Thermal Units in the case of an
industrial heat pump that is manufactured and installed in an
industrial facility in calendar years 2022 through 2030 and
that has a Coefficient of Performance of 2.0 or more.
``(c) Eligible Production.--The eligible production in a calendar
year with respect to each type of energy efficient heat pump is--
``(1) the number of heat pumps of such type that are
produced by the taxpayer in the United States during such
calendar year, less
``(2) the average number of heat pumps of such type that
were produced by the taxpayer (or any predecessor) in the
United States during the preceding 2-calendar year period.
``(d) Types of Energy Efficient Heat Pumps.--For purposes of this
section, the types of energy efficient heat pumps are--
``(1) consumer heat pump water heaters described in
subsection (b)(1),
``(2) commercial heat pump water heaters described in
subsection (b)(2),
``(3) consumer unitary heat pumps described in subsection
(b)(3),
``(4) commercial heat pumps described in subsection (b)(4),
and
``(5) industrial heat pumps described in subsection (b)(5).
``(e) Limitations.--
``(1) Aggregate credit amount allowed.--The aggregate
amount of credit allowed under subsection (a) with respect to a
taxpayer for any taxable year shall not exceed $250,000,000,
reduced by the amount of the credit allowed under subsection
(a) to the taxpayer (or any predecessor) for all prior taxable
years beginning after December 31, 2021.
``(2) Limitation based on gross receipts.--The credit
allowed under subsection (a) with respect to a taxpayer for the
taxable year shall not exceed an amount equal to 4 percent of
the average annual gross receipts of the taxpayer for the 3
taxable years preceding the taxable year in which the credit is
determined.
``(3) Gross receipts.--For purposes of this subsection, the
rules of paragraphs (2) and (3) of section 448(c) shall apply.
``(f) Adjustment of Energy Efficiency Criteria.--No later than
December 31, 2022, and every two years thereafter, the Secretary, in
consultation with the Secretary of Energy, shall review the efficiency
levels in subsection (b) and revise these levels upward if necessary to
include only the most efficient commercially available heat pumps of
each type, while ensuring that at least three manufacturers are
represented in each type across a range of product heating capacities.
``(g) Test Procedures.--
``(1) The Department of Energy shall develop test
procedures to determine Coefficient of Performance for--
``(A) gas commercial heat pump water heaters,
``(B) gas commercial heat pumps, and
``(C) industrial heat pumps.
``(2) Such test procedures shall build upon the foundation
of relevant current American National Standard Institute and
International Organization of Standard test procedures.
``(h) Definitions.--For purposes of this section:
``(1) Qualified energy efficient heat pump.--The term
`qualified energy efficient heat pump' means--
``(A) any consumer heat pump water heater described
in subsection (b)(1),
``(B) any commercial heat pump water heater
described in subsection (b)(2),
``(C) any consumer unitary heat pump described in
subsection (b)(3),
``(D) any commercial heat pump described in
subsection (b)(4), and
``(E) any industrial heat pump described in
subsection (b)(5).
``(2) Consumer heat pump water heater.--The term `consumer
heat pump water heater' means a water heater that uses a heat
pump to heat water, has a maximum electric current rating of 24
amperes at an input voltage of 250 volts or less for electric
water heaters, or a gas input of 75,000 Btu per hour or less
for gas water heaters, measured in accordance with applicable
U.S. Department of Energy test procedures.
``(3) Commercial heat pump water heaters.--The term
`commercial heat pump water heater' means a water heater that
uses a heat pump to heat water and is not a consumer heat pump
water heater defined in paragraph (2).
``(4) Consumer unitary heat pump.--The term `consumer
unitary heat pump' means a heat pump designed to provide space
heating and cooling with a cooling capacity of 65,000 British
Thermal Units per hour or less, measured in accordance with the
applicable Department of Energy test procedures.
``(5) Commercial heat pump.--The term `commercial heat
pump' means a heat pump designed to provide space heating and
cooling with a cooling capacity of more than 65,000 British
Thermal Units per hour, measured in accordance with the
applicable Department of Energy test procedures.
``(6) Industrial heat pump.--The term `industrial heat
pump' means a heat pump that upgrades industrial waste heat to
a higher temperature such that the delivered heat is produced
and supplied to the facility more efficiently than conventional
heating methods, such as a steam or electric resistance boiler.
``(7) Produced.--The term `produced' includes manufactured.
``(8) Uniform energy factor.--The term `Uniform Energy
Factor' is a metric used to measure the efficiency of consumer
water heaters, with details specified in applicable Department
of Energy test procedures.
``(9) Coefficient of performance.--The term `Coefficient of
Performance' means the ratio of heat output to energy input,
with details specified in applicable Department of Energy test
procedures. For gas commercial heat pump water heaters, until
there is a Department of Energy test procedure, American
National Standards Institute and American Society of Heating,
Refrigerating and Air-Conditioning Engineers Standard 118.1
shall be used. For gas commercial heat pumps, until there is a
Department of Energy test procedure, American National
Standards Standard Z21.40.4 shall be used. For industrial heat
pumps, until there is a Department Energy test procedure,
manufacturers may use their own tests, provided they publicly
post the test conditions and assumptions they used in
developing their stated Coefficient of Performance values.
``(i) Special Rules.--For purposes of this section:
``(1) In general.--Rules similar to the rules of
subsections (c), (d), and (e) of section 52 shall apply.
``(2) Controlled group.--
``(A) In general.--All persons treated as a single
employer under subsection (a) or (b) of section 52 or
subsection (m) or (o) of section 414 shall be treated
as a single producer.
``(B) Inclusion of foreign corporations.--For
purposes of subparagraph (A), in applying subsections
(a) and (b) of section 52 to this section, section 1563
shall be applied without regard to subsection (b)(2)(C)
thereof.
``(3) Verification.--No amount shall be allowed as a credit
under subsection (a) with respect to which the taxpayer has not
submitted such information or certification as the Secretary,
in consultation with the Secretary of Energy, determines
necessary.
``(4) Production in united states.--The requirement for
production in the United States in subsection (c) shall not
take effect until January 1, 2025.''.
(b) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1, as amended by this Act, is
further amended by adding after the item relating to section 45V the
following new item:
``Sec. 45W. Manufacturer credit for high-efficiency heat pumps and heat
pump water heaters.''.
SEC. 210. OTHER AUTHORIZATIONS OF APPROPRIATIONS.
(a) Amendment to America Competes Act.--Section 5012(o)(2) of the
America COMPETES Act (42 U.S.C. 16538(o)(2)) is amended by striking
subparagraphs (B) through (E) and inserting the following:
``(B) $569,000,000 for fiscal year 2022;
``(C) $713,000,000 for fiscal year 2023;
``(D) $856,000,000 for fiscal year 2024; and
``(E) $1,000,000,000 for fiscal year 2025.''.
(b) Regional Innovation Models.--There are authorized to be
appropriated to the Secretary for purposes of developing regional
innovation models--
(1) $100,000,000 for fiscal year 2022;
(2) $200,000,000 for fiscal year 2023;
(3) $300,000,000 for fiscal year 2024; and
(4) $500,000,000 for fiscal year 2025.
(c) Grid Modernization.--There are authorized to be appropriated to
the Secretary for purposes of research, development, demonstration,
analysis, technology validation, market transformation, and technical
assistance to support grid modernization--
(1) $238,000,000 for fiscal year 2022;
(2) $375,000,000 for fiscal year 2023;
(3) $513,000,000 for fiscal year 2024; and
(4) $650,000,000 for fiscal year 2025.
(d) Advanced Land-Based and Offshore Wind Power.--There are
authorized to be appropriated to the Secretary for the purposes of
research, development, demonstration, analysis, technology validation,
market transformation, and technical assistance to support advanced
land-based and offshore wind power--
(1) $178,000,000 for fiscal year 2022;
(2) $252,000,000 for fiscal year 2023;
(3) $326,000,000 for fiscal year 2024; and
(4) $400,000,000 for fiscal year 2025.
(e) Advanced Solar Power.--There are authorized to be appropriated
to the Secretary for the purposes of research, development,
demonstration, analysis, technology validation, market transformation,
and technical assistance to support advanced solar power--
(1) $360,000,000 for fiscal year 2022;
(2) $440,000,000 for fiscal year 2023;
(3) $520,000,000 for fiscal year 2024; and
(4) $600,000,000 for fiscal year 2025.
(f) Mechanical, Chemical, and Thermal Storage Technology.--There
are authorized to be appropriated to the Secretary for the purposes of
research, development, demonstration, analysis, technology validation,
market transformation, and technical assistance to support mechanical,
chemical, and thermal storage technology--
(1) $150,000,000 for fiscal year 2022;
(2) $150,000,000 for fiscal year 2023;
(3) $150,000,000 for fiscal year 2024; and
(4) $150,000,000 for fiscal year 2025.
(g) Buildings.--There are authorized to be appropriated to the
Secretary for the purposes of research, development, demonstration,
analysis, technology validation, market transformation, and technical
assistance to support technologies that improve the energy efficiency
of building equipment, the building envelope, building controls, and
that improve information sharing between the building and the grid,
which technologies may include energy efficiency, demand response, and
electrification technologies in residential, commercial, and industrial
buildings--
(1) $381,000,000 for fiscal year 2022;
(2) $478,000,000 for fiscal year 2023;
(3) $574,000,000 for fiscal year 2024; and
(4) $670,000,000 for fiscal year 2025.
(h) Industry.--There are authorized to be appropriated to the
Secretary for the purposes of research, development, demonstration,
analysis, technology validation, market transformation, and technical
assistance to support technologies to reduce emissions in industrial
and manufacturing processes, including such technologies relating to
energy efficiency and electrification--
(1) $381,000,000 for fiscal year 2022;
(2) $478,000,000 for fiscal year 2023;
(3) $574,000,000 for fiscal year 2024; and
(4) $840,000,000 for fiscal year 2025.
(i) Enhanced Geothermal Technologies.--There are authorized to the
Secretary for the purposes of research, development, and demonstration
of enhanced geothermal technologies an increase in the amount from
fiscal year 2019 appropriations by $100,000,000 for each year until
fiscal year 2026, of which--
(1) $70,000,000 is authorized for the Secretary to use each
year to establish a supercritical enhanced geothermal system
demonstration program; and
(2) $30,000,000 is authorized for the Secretary to use each
year in collaboration with the National Laboratories for
supercritical enhanced geothermal systems research and
development.
TITLE III--EXISTING AND ADVANCED NUCLEAR POWER PLANTS
SEC. 301. ZERO-EMISSIONS CREDIT PROGRAM.
(a) Establishment.--Not later than 2 years after the date of
enactment of this section, the Secretary shall establish a program to
be known as the ``Zero-Emissions Credit Program''.
(b) Issuance of Credits.--Under the Zero-Emissions Credit Program
the Secretary shall, by not later than March 1 of each calendar year,
issue zero-emissions credits to each owner or operator of a qualified
nuclear power plant in the quantity that is equal to the number of
megawatt-hours of electricity sold by such owner or operator to an
organized power market in the prior year.
(c) Payment for Credits.--
(1) In general.--Except as provided in paragraphs (2), (3),
and (4), under the Zero-Emissions Credit Program the Secretary
shall pay an owner or operator of a qualified nuclear power
plant $13.25 for each zero-emissions credit such owner or
operator submits to the Secretary.
(2) Adjustments for inflation.--Each year the Secretary
shall adjust the amount paid for each zero-emissions credit to
account for the effects of inflation based on the Consumer
Price Index for All Urban Consumers (as published by the Bureau
of Labor Statistics of the Department of Labor).
(3) Reduction in value of credit.--If the price for the
sale of electricity to an organized power market increases in a
calendar year such that payments for zero-emissions credits
under paragraph (1) are no longer needed to prevent the
retirement of a qualified nuclear power plant in the subsequent
year, the Secretary shall, after the application of any
adjustment under paragraph (2), reduce the amount to be paid
for each zero-emissions credit to the owner or operator of such
qualified nuclear power plant to account for such change in
price.
(4) Offset for value of clean electricity credits.--If the
owner or operator of a qualified nuclear power plant is issued
any clean electricity credits under section 611 of the Public
Utility Regulatory Policies Act of 1978 (as added by section
402 of this Act) in a calendar year in which such owner or
operator is issued zero-emissions credits, the Secretary shall
reduce the amount paid for such zero-emissions credits by the
value of such clean electricity credits.
(d) Termination Date.--The Zero-Emissions Credit Program shall
terminate on the date that is 5 years after the program effective date.
(e) Rulemaking.--Not later than 1 year after the date of enactment
of this section, the Secretary shall issue a final rule to carry out
this section.
(f) Definitions.--In this section:
(1) Clean electricity credit.--The term ``clean electricity
credit'' has the meaning given such term in section 611(g) of
the Public Utility Regulatory Policies Act of 1978 (as added by
section 402 of this Act).
(2) Organized power market.--The term ``organized power
market'' means any market that is controlled by a Regional
Transmission Organization or an Independent System Operator, as
such terms are defined in section 3 of the Federal Power Act
(16 U.S.C. 796).
(3) Program effective date.--The term ``program effective
date'' has the meaning given such term in section 611(g) of the
Public Utility Regulatory Policies Act of 1978 (as added by
section 402 of this Act).
(4) Qualified nuclear power plant.--
(A) In general.--The term ``qualified nuclear power
plant'' means any nuclear power plant the Secretary
determines, by not later than 2 years after the date of
enactment of this Act and based on an application
submitted by such plant to the Secretary, is not
financially viable or will otherwise be required to
retire if it does not receive zero-emissions credits
under the Zero-Emissions Credit Program.
(B) Exclusion.--The term ``qualified nuclear power
plant'' does not include a nuclear power plant with
respect to which a tax credit under section 48 of the
Internal Revenue Code of 1986 is claimed in the taxable
year prior to the taxable year in which the Secretary
makes the determination under subparagraph (A).
(5) Zero-emissions credit.--The term ``zero-emissions
credit'' means a credit issued by the Secretary under the Zero-
Emissions Credit Program that represents 1 megawatt-hour of
electricity sold by the owner or operator of a qualified
nuclear power plant to an organized power market.
SEC. 302. INVESTMENT TAX CREDIT FOR NUCLEAR ENERGY PROPERTY.
(a) In General.--Section 48(a)(3)(A) of the Internal Revenue Code
of 1986, as amended by section 204, is amended by striking ``or'' at
the end of clause (xi), by adding ``or'' at the end of clause (xii),
and by adding at the end the following new clause:
``(xiii) qualified nuclear energy
property.''.
(b) Eligible for 30-Percent Credit.--Section 48(a)(2)(A)(i) of such
Code is amended by striking ``and'' in subclause (IV) and by adding at
the end the following new subclause:
``(VI) energy property described in
paragraph (3)(A)(xiii), but only with
respect to property placed in service
before January 1, 2024, and''.
(c) Qualified Nuclear Energy Property.--Section 48(c) of such Code,
as amended by section 204, is amended by adding at the end the
following new paragraph:
``(10) Qualified nuclear energy property.--
``(A) In general.--The term `qualified nuclear
energy property' means, with respect to a qualifying
nuclear power plant--
``(i) amounts paid or incurred for the
refueling of such power plant, and
``(ii) any expenditure described in section
263(a).
``(B) Qualifying nuclear power plant.--The term
`qualifying nuclear power plant' means a nuclear power
plant which--
``(i) submits an application for license
renewal to the Nuclear Regulatory Commission in
accordance with part 54 of title 10, Code of
Federal Regulations, before January 1, 2026, or
``(ii) certifies to the Secretary (at such
time and in such form and in such manner as the
Secretary may prescribe) that such plant will
submit an application for license renewal to
the Nuclear Regulatory Commission in accordance
with part 54 of title 10, Code of Federal
Regulations, before January 1, 2026.
``(C) Special rules.--
``(i) Basis.--For purposes of subsection
(a), the cumulative amounts paid or incurred by
the taxpayer during the taxable year with
respect to a qualifying nuclear power plant
which are properly chargeable to capital
account shall be treated as the basis of the
qualified nuclear energy property placed in
service for that taxable year.
``(ii) Placed in service.--For purposes of
subsection (a), qualified nuclear energy
property shall be treated as having been placed
in service on the last day of the taxable year
in which the taxpayer pays or incurs such
amounts described in clause (i).
``(iii) Recapture.--The Secretary shall
provide by regulations for the recapture of any
credit allowable under subsection (a) to any
qualifying nuclear power plant which makes a
certification pursuant to subparagraph (B) but
does not file an application of license renewal
to the Nuclear Regulatory Commission in
accordance with part 54 of title 10, Code of
Federal Regulations, before January 1, 2026.''.
(d) Phaseout of 30-Percent Credit Rate for Nuclear Energy
Property.--Section 48(a) of such Code is amended by adding at the end
the following new paragraph:
``(8) Phaseout for qualified nuclear energy property.--In
the case of qualified nuclear energy property, the energy
percentage determined under paragraph (2) shall be equal to--
``(A) in the case of any property placed in service
after December 31, 2023, and before January 1, 2025, 26
percent, and
``(B) in the case of any property placed in service
after December 31, 2022, and before January 1, 2026, 22
percent.''.
(e) Coordination With Credit for Production From Advanced Nuclear
Power Facilities.--Section 48(a)(3) of such Code is amended by
inserting ``or section 45J'' after ``section 45''.
(f) Transfer of Credit by Certain Public Entities.--
(1) In general.--Section 48 of such Code is amended by
adding at the end the following new subsection:
``(e) Special Rule for Qualified Nuclear Energy Property.--
``(1) In general.--In the case of any qualified nuclear
energy property, if, with respect to a credit under subsection
(a) for any taxable year--
``(A) the taxpayer is a qualified public entity,
and
``(B) such qualified public entity elects the
application of this subsection for such taxable year
with respect to such credit (or any portion thereof),
the eligible project partner specified in such election
shall be treated as the taxpayer for purposes of this
title with respect to such credit (or such portion
thereof).
``(2) Definitions.--For purposes of this subsection:
``(A) Qualified public entity.--The term `qualified
public entity' means--
``(i) a Federal, State, or local government
entity, or any political subdivision, agency,
or instrumentality thereof,
``(ii) a mutual or cooperative electric
company described in section 501(c)(12) or
section 1381(a)(2), or
``(iii) a not-for-profit electric utility
which received a loan or loan guarantee under
the Rural Electrification Act of 1936.
``(B) Eligible project partner.--The term `eligible
project partner' means--
``(i) any person responsible for operating,
maintaining, or repairing the qualifying
nuclear power plant to which the credit under
subsection (a) relates,
``(ii) any person who participates in the
provision of the nuclear steam supply system to
the qualifying nuclear power plant to which the
credit under subsection (a) relates,
``(iii) any person who participates in the
provision of nuclear fuel to the qualifying
nuclear power plant to which the credit under
subsection (a) relates, or
``(iv) any person who has an ownership
interest in such facility.
``(3) Special rules.--
``(A) Application to partnerships.--In the case of
a credit under subsection (a) which is determined with
respect to qualified nuclear energy property at the
partnership level--
``(i) for purposes of paragraph (1)(A), a
qualified public entity shall be treated as the
taxpayer with respect to such entity's
distributive share of such credit, and
``(ii) the term `eligible project partner'
shall include any partner of the partnership.
``(B) 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 (e), such credit shall be taken into
account in the first taxable year of the eligible
project partner ending with, or after, the qualified
public entity's taxable year with respect to which the
credit was determined.
``(C) Treatment of transfer under private use
rules.--For purposes of section 141(b)(1), any benefit
derived by an eligible project partner in connection
with an election under this subsection shall not be
taken into account as a private business use.''.
(2) Special rule for proceeds of transfers for mutual or
cooperative electric companies.--Section 501(c)(12) of such
Code is amended by adding at the end the following new
subparagraph:
``(K) In the case of a mutual or cooperative
electric company described in this paragraph or an
organization described in section 1381(a)(2), income
received or accrued in connection with an election
under section 48(e) shall be treated as an amount
collected from members for the sole purpose of meeting
losses and expenses.''.
(g) Conforming Amendment.--Section 48(a)(2)(A) of such Code is
amended by striking ``paragraphs (6) and (7)'' and inserting
``paragraphs (6), (7), and (8)''.
(h) Effective Date.--The amendments made by this section shall
apply to periods after December 31, 2020, in taxable years ending after
such date, under rules similar to the rules of section 48(m) of the
Internal Revenue Code of 1986 (as in effect on the day before the
enactment of the Revenue Reconciliation Act of 1990).
SEC. 303. EXPANDING FEDERAL CLEAN ELECTRICITY PURCHASING REQUIREMENTS.
(a) Federal Purchase Requirement.--Section 203 of the Energy Policy
Act of 2005 (42 U.S.C. 15852) is amended--
(1) in subsection (a), by striking ``, the following
amounts shall be renewable energy:'' and inserting ``, such
amount shall be made up of the following:'';
(2) in subsection (a)(1), by inserting ``shall be renewable
energy'' after ``2009'';
(3) in subsection (a)(2), by inserting ``shall be renewable
energy'' after ``2012'';
(4) in subsection (a)(3), by striking ``7.5 percent in
fiscal year 2013 and each fiscal year thereafter.'' and
inserting ``7.5 percent in fiscal years 2013 through 2020 shall
be renewable energy.'';
(5) in subsection (a), by adding at the end the following:
``(4) Not less than 35 percent in fiscal year 2021 and each
year thereafter shall be clean electricity.'';
(6) in subsection (b), by adding at the end the following:
``(3) Clean electricity.--The term `clean electricity'
means--
``(A) renewable energy;
``(B) electric energy generated by a nuclear power
plant; and
``(C) electric energy generated by a power plant
equipped with carbon capture utilization and storage
technology, from which at least 90 percent of the
carbon dioxide output of such plant is captured and
utilized, or stored in a manner that prevents emission
to the atmosphere.'';
(7) in subsection (c), by striking ``renewable energy'' and
inserting ``clean electricity'' in each place it occurs;
(8) by redesignating subsection (d) as subsection (e); and
(9) by inserting after subsection (c) the following:
``(d) Power Purchase Agreement.--For the purposes of this section,
the Secretary may enter into a power purchase agreement for any amount
of the electricity generated by a nuclear power plant for the duration
of the operational life of such nuclear power plant if such nuclear
power plant supplies electricity for purposes of national security or
mission-critical activities.''.
(b) Long-Term Nuclear Power Purchase Agreement Pilot Program.--
Subtitle B of title VI of the Energy Policy Act of 2005 is amended by
adding at the end the following:
``SEC. 639A. LONG-TERM NUCLEAR POWER PURCHASE AGREEMENT PILOT PROGRAM.
``(a) Establishment.--The Secretary shall establish and carry out a
pilot program to enter into long-term power purchase agreements for
electricity generated by commercial nuclear power plants.
``(b) Requirements.--In carrying out the pilot program established
under subsection (a), the Secretary shall--
``(1) consult and coordinate with the heads of other
Federal agencies that may benefit from purchasing nuclear power
for a period of longer than 10 years, including--
``(A) the Secretary of Defense;
``(B) the Administrator of General Services; and
``(C) the Secretary of Homeland Security; and
``(2) not later than 10 years after the date of enactment
of this section, enter into at least 1 power purchase agreement
with the owner or operator of a commercial nuclear power plant
for up to 30 years.
``(c) Priority.--In carrying out the pilot program established
under subsection (a), the Secretary shall prioritize entering into a
power purchase agreement with the owner or operator of a commercial
nuclear power plant--
``(1) to which a license is issued under section 103 of the
Atomic Energy Act of 1954 (42 U.S.C. 2133) after January 1,
2021;
``(2) that uses first-of-a-kind or early deployment nuclear
technology; and
``(3) that can provide reliable and resilient power--
``(A) to high-value assets for national security
purposes; or
``(B) for other purposes that the Secretary
determines are in the national interest, including in
remote off-grid scenarios or grid-connected scenarios
for which such commercial nuclear power plant can
provide capabilities commonly known as `islanding power
capabilities'.
``(d) Effect on Rates.--A power purchase agreement entered into
under this section may be at a rate that is higher than the average
market rate if the power purchase agreement fulfills a purpose
described in subsection (c).''.
(c) Table of Contents.--The table of contents of the Energy Policy
Act of 2005 (Public Law 109-58; 119 Stat. 594) is amended by inserting
after the item relating to section 639 the following:
``Sec. 639A. Long-term nuclear power purchase agreement pilot
program.''.
(d) Authorization of Long-Term Power Purchase Agreements.--Section
501(b)(1) of title 40, United States Code, is amended by striking
subparagraph (B) and inserting the following:
``(B) Public utility contracts.--
``(i) Term.--
``(I) In general.--A contract under
this paragraph to purchase electricity
service from a public utility may be
for a period of not more than 40 years.
``(II) Other public utility
services.--A contract under this
paragraph for a public utility service
other than a service described in
subclause (I) may be for a period of
not more than 10 years.
``(ii) Costs.--The cost of a contract under
this paragraph for any fiscal year may only be
paid from the appropriations for that fiscal
year.''.
SEC. 304. MODERNIZING THE NUCLEAR REGULATORY COMMISSION.
(a) Reducing the Administrative Burden of Licensing Advanced
Nuclear Reactors.--
(1) Report.--Not later than 90 days after the date of
enactment of this section, the Commission shall submit to the
Committee on Energy and Commerce of the House of
Representatives and the Committee on Energy and Natural
Resources of the Senate a report that recommends how to improve
the processes, procedures, and, if appropriate, regulations of
the Commission with respect to licensing, certification, and
approval of advanced nuclear reactors pursuant to the Atomic
Energy Act of 1954 (42 U.S.C. 2011 et seq.).
(2) Required recommendations.--The report submitted under
paragraph (1) shall include recommendations to--
(A) improve, accelerate, and reduce the cost of all
Commission actions with respect to licensing,
certification, and approval of advanced nuclear
reactors pursuant to the Atomic Energy Act of 1954 (42
U.S.C. 2011 et seq.), including actions to improve
compliance with section 102(2)(C) of the National
Environmental Policy Act of 1969 (42 U.S.C.
4332(2)(C));
(B) emphasize risk-informed and performance-based
regulatory approaches; and
(C) enable the Commission to finalize review of an
application for certification of a design of an
advanced nuclear reactor pursuant to the Atomic Energy
Act of 1954 (42 U.S.C. 2011 et seq.) by not later than
2 years after the date on which such application is
filed.
(3) Definitions.--In this subsection:
(A) Advanced nuclear reactor.--The term ``advanced
nuclear reactor'' has the meaning given such term in
section 951(b)(1) of the Energy Policy Act of 2005 (42
U.S.C. 16271(b)(1)).
(B) Commission.--The term ``Commission'' means the
Nuclear Regulatory Commission.
(b) Study on Elimination of Foreign Licensing Restrictions.--Not
later than 18 months after the date of enactment of this section, the
Comptroller General, in consultation with the Secretary, shall submit
to Congress a report containing the results of a study on the
feasibility and implications of repealing restrictions related to
foreign ownership and control under sections 103 d. and 104 d. of the
Atomic Energy Act of 1954 (42 U.S.C. 2133(d) and 2134(d)).
(c) Study on the Impact of the Elimination of Mandatory Hearings
for Uncontested Licensing Applications.--Not later than 18 months after
the date of enactment of this section, the Comptroller General, in
consultation with the Secretary, shall submit to Congress a report
containing the results of a study on the estimated effect of
eliminating the requirement under section 189 of the Atomic Energy Act
of 1954 (42 U.S.C. 2239) to hold a hearing for uncontested
applications.
(d) Definitions.--Section 11 of the Atomic Energy Act of 1954 (42
U.S.C. 2014) is amended by adding at the end the following:
``jj. Early Site Permit.--In sections 182, 189, and 194, the term
`early site permit' has the meaning given such term in section 52.1 of
title 10, Code of Federal Regulations (as in effect on the date of
enactment of this subsection).''.
(e) Application Reviews for Nuclear Energy Projects.--
(1) License applications.--Section 182 of the Atomic Energy
Act of 1954 (42 U.S.C. 2232) is amended by adding at the end
the following:
``e. Streamlining Application Review.--With respect to an
application for a construction permit, operating license, or combined
construction permit and operating license, the Commission shall--
``(1) undertake an expedited environmental review process
and issue any draft environmental impact statements (as
required pursuant to section 102(2)(C) the National
Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C))) for
the application not later than 12 months after the date on
which the application is accepted for docketing; and
``(2) complete the technical review process of the
application, issue any safety evaluation reports, and issue any
final environmental impact statements (as required pursuant to
section 102(2)(C) the National Environmental Policy Act of 1969
(42 U.S.C. 4332(2)(C))) for the application not later than 24
months after the date on which the application is accepted for
docketing.
``f. Production or Utilization Facility Located at an Existing
Site.--In reviewing an application for an early site permit,
construction permit, operating license, or combined construction permit
and operating license for a proposed production facility or utilization
facility that is to be located at the site of a production facility or
utilization facility for which an early site permit, construction
permit, operating license, or combined construction permit and
operating license has been issued, the Commission shall, to the extent
practicable, use information that was part of the determination to
issue the license for such production facility or utilization
facility.''.
(2) Use of early site permit environmental impact
statement.--Chapter 16 of the Atomic Energy Act of 1954 (42
U.S.C. 2231 et seq.) is amended by adding at the end the
following:
``SEC. 194. USE OF EARLY SITE PERMIT ENVIRONMENTAL IMPACT STATEMENT.
``a. Supplemental Environmental Impact Statement.--Any
environmental impact statement required pursuant to section 102(2)(C)
the National Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C))
for purposes of issuing a construction permit, operating license, or
combined construction permit and operating license for a production
facility or utilization facility, for which an early site permit has
been issued, shall be prepared as a supplement to the environmental
impact statement prepared for such early site permit.
``b. Incorporation by Reference.--A supplemental environmental
impact statement prepared under subsection a. shall--
``(1) incorporate by reference the analysis, findings, and
conclusions from the environmental impact statement prepared
for the applicable early site permit; and
``(2) include additional discussion, analysis, findings,
and conclusions on matters resolved in the early site permit
proceeding only to the extent necessary to address information
that--
``(A) is new; and
``(B) would materially change the prior findings or
conclusions.''.
(f) Hearings.--
(1) In general.--Section 189 of the Atomic Energy Act of
1954 (42 U.S.C. 2239) is amended--
(A) in subsection a. (1) (B)--
(i) by striking clause (iv); and
(ii) by redesignating clause (v) as clause
(iv); and
(B) by adding at the end the following:
``c. Hearing Procedures.--All hearings under this section shall be
conducted using informal adjudicatory procedures, unless the Commission
determines that formal adjudicatory procedures are necessary--
``(1) to develop a sufficient record; or
``(2) to achieve fairness.
``d. Hearing on Early Site Permit, Construction Permit, Operating
License, and Combined Construction Permit and Operating License.--
``(1) In general.--Notwithstanding any outstanding request
for a hearing, the Commission shall issue and make immediately
effective any early site permit, construction permit, operating
license, or combined construction permit and operating license
for a production facility or utilization facility upon the
Commission's finding that the application therefor satisfies
the requirements of this Act.
``(2) Appropriate action.--Following completion of any
required hearing, the Commission shall take any appropriate
action with respect to the early site permit, construction
permit, operating license, or combined construction permit and
operating license to the extent necessary to account for the
decision in any such required hearing.''.
(2) Licensing of uranium enrichment facilities.--Section
193(b) of the Atomic Energy Act of 1954 (42 U.S.C. 2243(b)) is
amended--
(A) by amending paragraph (1) to read as follows:
``(1) In general.--Upon a request for a hearing on the
licensing of construction and operation of a uranium enrichment
facility under sections 53 and 63, the Commission shall conduct
a single adjudicatory hearing.''; and
(B) in paragraph (2), by striking ``Such hearing''
and inserting ``If a hearing is held under paragraph
(1), the hearing''.
(g) Technical Amendment.--Section 103 d. of the Atomic Energy Act
of 1954 (42 U.S.C. 2133d.) is amended by striking ``or any any'' and
inserting ``or any''.
(h) Authorization of Appropriations.--
(1) In general.--There are authorized to be appropriated to
carry out subsections (a), (b), and (c) $20,000,000 for each of
fiscal years 2021 through 2031, to remain available until
expended.
(2) Off-fee appropriation.--Any funds appropriated to carry
out subsections (a), (b), and (c) may not be recovered by the
Commission through the collection of user fees from existing
licensees.
SEC. 305. DEMONSTRATION AND EARLY DEPLOYMENT OF ADVANCED NUCLEAR
REACTORS.
(a) Demonstration Projects.--Section 959A(c) of the Energy Policy
Act of 2005 (42 U.S.C. 16279a(c)) is amended--
(1) by redesignating paragraphs (1) through (10) as
paragraphs (2) through (11), respectively;
(2) by inserting after ``the Secretary shall--'' the
following:
``(1) not later than December 31, 2025, establish a program
to enter into agreements to carry out no fewer than 5
demonstration projects pursuant to subsection (b)(1) to
demonstrate the suitability of advanced nuclear reactors for
commercial applications;'';
(3) in paragraph (10)(A), as redesignated by paragraph (1)
of this subsection, by striking ``paragraph (8)'' and inserting
``paragraph (9)''; and
(4) in paragraph (11), as redesignated by paragraph (1) of
this subsection, by striking ``paragraph (8)'' and inserting
``paragraph (9)'' and by striking ``paragraph (9)'' and
inserting ``paragraph (10)''.
(b) Research and Development Goals.--Section 959A of such Act (42
U.S.C. 16279a(c)) is amended--
(1) by redesignating subsection (f) as subsection (g); and
(2) by inserting after subsection (e) the following:
``(f) Research Goals.--
``(1) In general.--The Secretary shall establish and
annually update goals for the research to support the
demonstration of advanced reactors under subsection (c) and the
deployment of subsequent advanced reactors.
``(2) Coordination.--In developing and updating the goals,
the Secretary shall coordinate with members of private
industry.
``(3) Requirements.--In developing the goals, the Secretary
shall ensure that--
``(A) research activities are focused on--
``(i) key areas of nuclear research,
development, and deployment that range from
basic research on advanced nuclear reactor
generation to full-design development, safety
evaluation, and licensing;
``(ii) resolving materials challenges
relating to radiation damage or corrosive
coolants; and
``(iii) qualification of advanced nuclear
fuel;
``(B) infrastructure, such as a versatile reactor-
based fast neutron source, which is required to be
established in section 955(c)(1), or a molten salt
testing facility to aid in research, is constructed;
and
``(C) advanced manufacturing and construction
techniques and materials are analyzed to identify
strategies to reduce the commercialization cost of
advanced nuclear reactors.''.
(c) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary $1,500,000,000 for each of fiscal years
2022 through 2023 for each of the following:
(1) Gateway for Accelerated Innovation in Nuclear vouchers.
(2) Advanced nuclear technology development funding
opportunity announcements.
(3) Advanced small modular nuclear reactor research and
development.
(4) The advanced reactor demonstration program.
(5) The Nuclear Reactor Innovation Center.
(d) Authorization of Appropriation.--Section 2001(c) of division Z
of the Consolidated Appropriations Act, 2021 (Public Law 116-260) is
amended to read as follows:
``(c) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary to carry out research, development,
demonstration, and transportation activities in this section
$350,000,000 for each of fiscal years 2022 through 2031.''.
SEC. 306. AUTHORIZATION OF APPROPRIATIONS FOR LOAN GUARANTEES FOR
ADVANCED NUCLEAR FACILITIES.
Section 1704 of the Energy Policy Act of 2005 (42 U.S.C. 16514) is
amended by adding at the end the following:
``(c) Advanced Nuclear Energy Facilities.--There are authorized to
be appropriated to the Secretary to make guarantees under section
1703(b)(4) $10,000,000,000 for each of fiscal years 2022 through 2031,
to remain available until expended.''.
SEC. 307. EXPANDING THE PRODUCTION TAX CREDIT FOR NUCLEAR POWER.
(a) In General.--Section 45J of the Internal Revenue Code of 1986
is amended--
(1) in subsection (a)(1), by striking ``1.8 cents'' and
inserting ``2.7 cents''; and
(2) in subsection (b)(5)(B)(i), by striking ``6,000
megawatts'' and inserting ``15,000 megawatts''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2020.
TITLE IV--CLEAN ELECTRICITY STANDARD
SEC. 401. CERTIFICATION OF COST-EFFECTIVE MARKET PENETRATION OF CLEAN
ELECTRICITY TECHNOLOGIES.
(a) In General.--Title VI of the Public Utility Regulatory Policies
Act of 1978 (16 U.S.C. 2601 et seq.) is amended by adding at the end
the following:
``SEC. 610. FEDERAL DECARBONIZATION AND INNOVATION ASSESSMENT PROGRAM.
``(a) In General.--Not later than 2 years after the date of
enactment of this section, the Secretary, after consultation with the
Administrator of the Environmental Protection Agency, shall establish a
program, to be known as the `Federal Decarbonization and Innovation
Assessment Program', to annually review and monitor progress towards--
``(1) an 80 percent reduction in the amount of carbon
dioxide emitted by electricity generators, relative to the
amount of such emissions on the date of enactment of this
section, by 2050; and
``(2) cost-effective market penetration of eligible
technologies, as determined by the Secretary under subsection
(b).
``(b) Cost-Effective Market Penetration.--The Secretary shall
determine that eligible technologies have achieved cost-effective
market penetration if--
``(1) at least 3 gigawatts of new electricity generating
capacity using any type of eligible technology has come into
commercial operation since the date of enactment of this
section, provided that--
``(A) less than 50 percent of the capital costs of
such new electricity generating capacity has been
subsidized with Federal funds; and
``(B) at least 1 gigawatt of such capacity is coal-
fired electricity generating capacity that is equipped
with carbon capture utilization and storage technology,
from which at least 90 percent of the carbon dioxide
output is captured and utilized or stored in a manner
that prevents emission to the atmosphere; and
``(2) at least one type of eligible technology--
``(A) has similar operating characteristics as
fossil-fueled electricity generation technology, such
as dispatchability upon demand; and
``(B) based on data provided by the Energy
Information Administration, has a total cost of
electricity generation that is not more than 10 percent
higher than the average total cost of electricity
generation from fossil-fueled electricity generators
that were constructed not earlier than 5 years prior to
the date of enactment of this section.
``(c) Certification of Cost-Effective Market Penetration.--Upon
making the determination described under subsection (b), but no earlier
than the date that is 5 years after the date of enactment of this
section, the Secretary shall certify that cost-effective market
penetration of eligible technology has occurred.
``(d) Definitions.--In this section:
``(1) Advanced dispatchable renewable energy system.--The
term `advanced dispatchable renewable energy system' means an
integrated system of energy storage technology deployed with
wind or solar electricity generation technology for which the
Secretary has determined that the availability of such
integrated system to be dispatched to support ongoing electric
grid reliability is similar to that of fossil-fueled
electricity generation technology.
``(2) Advanced nuclear power generation technology.--The
term `advanced nuclear power generation technology' has the
meaning given the term `advanced nuclear reactor' in section
951(b) of the Energy Policy Act of 2005 (42 U.S.C. 16271).
``(3) Eligible technology.--The term `eligible technology'
means any of the following:
``(A) Advanced nuclear power generation technology.
``(B) Advanced dispatchable renewable energy
system.
``(C) Fossil-fueled electricity generation
technology equipped with carbon capture utilization and
storage technology, from which at least 90 percent of
the carbon dioxide output of the fossil-fueled
electricity generation technology is--
``(i) captured and utilized; or
``(ii) stored in a manner that prevents
emission to the atmosphere.''.
(b) Conforming Amendment.--Section 1(b) of the Public Utility
Regulatory Policies Act of 1978 is amended by adding after the item
relating to section 608 the following:
``Sec. 609. Rural and remote communities electrification grants.
``Sec. 610. Federal decarbonization and innovation assessment
program.''.
SEC. 402. FEDERAL CLEAN ELECTRICITY STANDARD.
(a) PURPA Amendments.--
(1) In general.--Title VI of the Public Utility Regulatory
Policies Act of 1978 (16 U.S.C. 2601 et seq.) is further
amended by adding after section 610 (as added by this Act) the
following:
``SEC. 611. CLEAN ELECTRICITY STANDARD.
``(a) Clean Electricity Credit Program.--Not later than 180 days
after the program trigger date and in accordance with this section, the
Secretary shall establish a program--
``(1) to reduce the amount of carbon dioxide that is
emitted by electricity generators; and
``(2) under which clean electricity credits are issued,
tracked, and surrendered.
``(b) Issuance of Clean Electricity Credits.--
``(1) In general.--For each calendar year, beginning on the
program effective date, the Secretary shall issue clean
electricity credits to each qualifying electricity generator in
the amount determined under paragraph (2).
``(2) Determination of credits issued.--Except as provided
in paragraph (3), the number of clean electricity credits
issued under paragraph (1) shall be the number that is equal
to--
``(A) the number of megawatt-hours of electricity
sold by the qualifying electricity generator;
multiplied by
``(B) the number that is equal to--
``(i) 1.0; less
``(ii) the number that is equal to--
``(I) the annual carbon intensity
of the qualifying electricity
generator; divided by
``(II) 0.82.
``(3) Use of dynamic crediting methodology.--If a dynamic
crediting methodology is approved under section 612(c), the
Secretary shall use such methodology to determine the number of
clean electricity credits to issue under this subsection.
``(c) Surrender of Credits.--
``(1) In general.--For each compliance period each retail
electricity supplier shall, except as provided in paragraph (2)
and by not later than 6 months after the date on which the
compliance period ends, surrender the number of clean
electricity credits determined under paragraph (3).
``(2) Payment.--For each clean electricity credit required
to be surrendered under paragraph (1) that is not so
surrendered, a retail electricity supplier shall pay an amount
that is equal to the alternative compliance price determined
under paragraph (7).
``(3) Number of credits.--
``(A) In general.--As determined by the Secretary,
the number of clean electricity credits required to be
surrendered under paragraph (1) by each retail
electricity supplier shall be equal to--
``(i) the percentage determined under
subparagraph (B); multiplied by
``(ii) the number of megawatt-hours of
electricity sold at retail by the retail
electricity supplier during the applicable
compliance period.
``(B) Determination of percentage.--
``(i) Reduction requirement.--The Secretary
shall determine the percentage to be applied in
subparagraph (A)(i) for each compliance period
that will result in an 80 percent reduction in
the amount of carbon dioxide emitted by
electricity generators, relative to the amount
of such emissions on the date of enactment of
this section, by 2050.
``(ii) Linear changes.--The Secretary shall
determine the percentage for each compliance
period under clause (i) with the goal of
achieving linear reductions in the amount of
carbon dioxide emitted by electricity
generators in each successive compliance
period.
``(C) First compliance period.--The percentage
determined under subparagraph (B) for the first
compliance period shall be the greater of--
``(i) the percentage obtained by dividing--
``(I) the total number of clean
electricity credits that would be
issued under subsection (b)(2) for the
year in which this section is enacted;
by
``(II) the total number of
megawatt-hours of electricity sold by
retail electricity suppliers in the
year in which this section is enacted;
and
``(ii) the percentage obtained by
dividing--
``(I) the total number of clean
electricity credits projected to be
issued under paragraph (4)(B) for 2030;
by
``(II) the total number of
megawatt-hours projected to be sold by
retail electricity suppliers in 2030.
``(4) Projections.--
``(A) Early projection for first compliance
period.--Not later than the date that is 2 years after
the date of enactment of this section, the Secretary
shall publish a projection of the percentage to be used
for purposes of paragraph (3)(A)(i) for the first
compliance period, which such projection shall be made
based on the number of megawatt-hours of electricity
sold by qualifying electricity generators during the
period of five years that precedes the date of the
projection and the associated carbon dioxide emissions.
``(B) 2030 projection.--By not later than 2026, the
Secretary shall publish a projection of the number of
clean electricity credits that would be issued to
qualifying electricity generators in 2030.
``(5) Single use of credits.--Each clean electricity credit
issued under subsection (b) may only be surrendered once for
purposes of complying with the requirements of paragraph (1).
``(6) Banking of clean electricity credits.--A clean
electricity credit issued under subsection (b) may be
surrendered for the compliance period in which the clean
electricity credit is issued or in any subsequent compliance
period.
``(7) Alternative compliance price.--
``(A) Initial amount.--The alternative compliance
price for the first compliance period shall be $30 per
applicable clean electricity credit.
``(B) Annual adjustments to alternative compliance
price.--
``(i) In general.--Beginning after the
first compliance period, the Secretary shall
increase the amount of the alternative
compliance price from the amount for the prior
compliance period by 5 percent.
``(ii) Other adjustments.--The Secretary
may adjust the alternative compliance price to
account for inflation, as the Secretary may
determine necessary.
``(d) Civil Penalties.--
``(1) In general.--Subject to paragraph (2), a retail
electricity supplier that fails to meet the requirements of
paragraph (1) or (2) of subsection (c) shall be subject to a
civil penalty in an amount equal to--
``(A) the number of megawatt-hours of electricity
sold by the retail electricity supplier for which such
retail electricity supplier fails to surrender a clean
electricity credit or make an alternative compliance
payment as required under subsection (c); multiplied by
``(B) 200 percent of the value of the applicable
alternative compliance price.
``(2) Procedure for assessing penalty.--The Secretary shall
assess a civil penalty under this subsection in accordance with
the procedures for assessing a penalty under section 333(d) of
the Energy Policy and Conservation Act (42 U.S.C. 6303(d)).
``(e) Savings Provision.--Nothing in this section affects the
authority of a State, or a political subdivision of a State, to adopt
or enforce any law relating to--
``(1) clean electricity or renewable energy;
``(2) carbon dioxide emissions; or
``(3) the regulation of a retail electricity supplier.
``(f) Regulations.--Not later than 1 year after the date of
enactment of this section, the Secretary shall issue regulations to
implement this section.
``(g) Definitions.--In this section:
``(1) Carbon intensity.--The term `carbon intensity' means,
as determined by the Secretary in consultation with the
Administrator of the Environmental Protection Agency and with
respect to a qualifying electricity generator, the amount (in
metric tons per megawatt-hour) obtained by dividing--
``(A) the annual carbon dioxide emissions of the
qualifying electricity generator, excluding any carbon
dioxide that is captured and utilized or stored in a
manner that prevents emission to the atmosphere; by
``(B) the annual quantity of electricity generated
by the qualifying electricity generator.
``(2) Clean electricity credit.--The term `clean
electricity credit' means a credit issued under subsection (b).
``(3) Clean electricity standard.--The term `clean
electricity standard' means the requirements of section 611.
``(4) Compliance period.--The term `compliance period'
means the 3-year period that begins on the program effective
date and each 3-year period thereafter until 2050.
``(5) Qualifying electricity generator.--The term
`qualifying electricity generator' means any electricity
generator that has an annual carbon intensity of less than 0.82
metric tons per megawatt-hour.
``(6) Retail electricity supplier.--The term `retail
electricity supplier' means an entity in the United States that
sold not fewer than 20 megawatt-hours of electricity to
electricity consumers for purposes other than resale during the
preceding calendar year.
``(7) Program trigger date.--The term `program trigger
date' means January 1 of the first calendar year beginning
after the date on which the Secretary certifies that cost-
effective market penetration of eligible technologies has
occurred under section 610(c).
``(8) Program effective date.--The term `program effective
date' means the earlier of--
``(A) the date that is 2 years after the program
trigger date; and
``(B) January 1 of the first calendar year that
begins after the date that is 10 years after the date
of enactment of this section.
``SEC. 612. IDENTIFICATION, REVIEW, AND APPROVAL OF DYNAMIC CREDITING
METHODOLOGIES.
``(a) Identification of Dynamic Crediting Methodologies.--
``(1) In general.--Not later than 2 years after the date of
enactment of this section, the Secretary, in consultation with
the Administrator of the Environmental Protection Agency, shall
identify a dynamic crediting methodology for calculating the
amount of carbon dioxide emissions that are avoided or
displaced on an hourly basis by increased electricity
generation from qualifying electricity generators.
``(2) Consideration of regional differences.--Any dynamic
crediting methodology identified under paragraph (1) may
account for differences between--
``(A) regions in which there is a Regional
Transmission Organization or an Independent System
Operator; and
``(B) regions in which there are no such entities.
``(b) Commission Review of Dynamic Crediting Methodologies.--
``(1) In general.--The Secretary shall provide any dynamic
crediting methodology identified under subsection (a) to the
Commission for review.
``(2) Technical conference.--Not later than 120 days after
the Secretary provides a dynamic crediting methodology to the
Commission under paragraph (1), the Commission shall hold a
technical conference in partnership with State regulatory
authorities to evaluate such methodology.
``(3) Report.--Not later than 180 days after the Commission
holds a technical conference under paragraph (2), and after
providing an opportunity for public comment, the Commission
shall provide to the Secretary a report on the technical
conference that includes Commission recommendations concerning
the use of the dynamic crediting methodology.
``(c) Approval.--Not later than 180 days following receipt of the
report provided under subsection (b)(3), the Secretary, in consultation
with the Administrator of the Environmental Protection Agency, shall
approve use of the dynamic crediting methodology that is the subject of
such report if the Secretary determines that such use would--
``(1) significantly enhance confidence that the program
established under 611(a)(1) will help achieve an 80 percent
reduction in the amount of carbon dioxide emitted by
electricity generators, relative to the amount of such
emissions on the date of enactment of this section, by 2050; or
``(2) significantly reduce the costs of achieving such
reduction.
``(d) Use of Dynamic Crediting Methodologies.--
``(1) Adjustment to amount of credits.--If the Secretary
approves a dynamic crediting methodology under subsection (c),
the Secretary shall use such dynamic crediting methodology to
determine the number of clean electricity credits to be issued
to a qualifying electricity generator to account for the amount
of carbon dioxide emissions that are avoided or displaced on an
hourly basis by increased electricity generation from such
qualifying electricity generator.
``(2) Deadline.--
``(A) In general.--Except as provided in
subparagraph (B), the Secretary shall use a dynamic
crediting methodology approved under subsection (c)
beginning in the later of--
``(i) the first full calendar year
beginning after the date on which such approval
occurs; and
``(ii) the first calendar year of the first
compliance period.
``(B) Exception.--The Secretary may delay use of an
approved dynamic crediting methodology by 1 year if the
Secretary finds that additional time is needed for the
Secretary or the Commission to take actions necessary
to carry out subsection (e).
``(e) Implementation.--
``(1) In general.--The Secretary may, by rule, require that
Regional Transmission Organizations, Independent System
Operators, other balancing authorities, and other appropriate
entities provide the Secretary with the information necessary
for the Secretary to use a dynamic crediting methodology
approved under subsection (c).
``(2) Tariffs.--At the request of the Secretary, or upon
its own initiative, the Commission shall consider whether
changes to any tariffs on file pursuant to section 205 of the
Federal Power Act (16 U.S.C. 824d) are necessary to implement
the requirements of any rule issued by the Secretary under
paragraph (1).
``(f) Regional Transmission Organization; Independent System
Operator.--The terms `Regional Transmission Organization' and
`Independent System Operator' have the meanings given such terms in
section 3 of the Federal Power Act (16 U.S.C. 796).
``(g) Definitions.--In this section, the terms `clean electricity
credit', `compliance period', and `qualifying electricity generator'
have the meanings given such terms in section 611.''.
(2) Conforming amendment.--Section 1(b) of the Public
Utility Regulatory Policies Act of 1978 is further amended by
adding after the item related to section 610 (as added by this
Act) the following:
``Sec. 611. Clean electricity standard.
``Sec. 612. Identification, review, and approval of dynamic crediting
methodologies.''.
(b) Amendments to the Clean Air Act.--Section 111(a)(4) of the
Clean Air Act (42 U.S.C. 7411(a)(4)) is amended--
(1) by striking ``The term'' and inserting ``(A) The
term''; and
(2) by adding at the end the following:
``(B) Until the end of the first compliance period
of the clean electricity standard (as such terms are
defined in section 611(h) of Public Utility Regulatory
Policies Act of 1978), the term `modification',
notwithstanding subparagraph (A), does not include a
physical or operational change at an electricity
generating unit that is designed to reduce the amount
of carbon dioxide emitted per megawatt hour at
electricity utility generating units, provided that
such change--
``(i) does not cause the violation of a
national ambient air quality standard in an air
quality control region in which an
environmental justice community (as defined by
the Administrator) exists; and
``(ii) does not result in--
``(I) an increase in the maximum
hourly emissions rate of any air
pollutant subject to a national ambient
air quality standard under section 109
that is achievable by such unit; and
``(II) both a significant emissions
increase and a significant net
emissions increase in annual actual
emissions of such pollutant from such
unit.''.
SEC. 403. REGIONAL CLEAN ELECTRICITY PLANNING MODELS.
(a) Development of Planning Models and Data.--Not later than 2
years after the date of enactment this Act, the Secretary shall make
available one or more regional electricity planning models and
standardized data sets, including potential renewable energy hourly
production profiles at all potential locations for renewable energy
deployment, that States can use to develop plans for portfolios of
clean electricity resources that are capable of achieving, at least
cost, the goal described under section 610(a)(1) of the Public Utility
Regulatory Policies Act of 1978, as added by section 402 of this Act,
consistent with the need to maintain reliability.
(b) Development Process.--In making planning models and data
available under subsection (a), the Secretary shall--
(1) solicit planning models and standardized, data sets
from the national laboratories and universities;
(2) hold jointly with the Commission a technical conference
on planning models and standardized data sets, including hourly
profiles of renewable energy production at potential deployment
locations, and consider the input from such conference in
choosing planning models and data sets to make available; and
(3) update the planning models and data sets made available
from time to time in response to new information.
(c) Use of Models by States.--The Secretary shall encourage States
to use the models and data sets to--
(1) plan collaboratively with other States in the same
North American Electric Reliability Corporation reliability
region or organized electricity market on least-cost and
reliable compliance with the clean electricity standard (as
such term is defined in section 611(h) of the Public Utility
Regulatory Policies Act of 1978); and
(2) adopt, and from time to time update, multi-State clean
electricity resource deployment goals that promote least-cost
deployment consistent with maintaining electric reliability.
SEC. 404. STAND-BY EMISSION PERFORMANCE STANDARDS.
(a) Annual Review of Emissions.--Not later than February 1 of the
first calendar year beginning after the date of enactment of this
section, and each February 1 thereafter, the Secretary, in consultation
with the Administrator of the Environmental Protection Agency, shall
publish a determination of the annual average level of carbon dioxide
emissions from electricity generators for the prior 3 calendar years.
(b) Enforceability.--An emission limitation for carbon dioxide
emissions from electric utility steam generating units established
under title I of the Clean Air Act (42 U.S.C. 7401 et seq.) may be
enforced by a State or by the Administrator of the Environmental
Protection Agency--
(1) before the program trigger date, only if--
(A) the Secretary, not earlier than 5 years after
the date of enactment of this Act, determines under
subsection (a) that the 5-year annual average level of
carbon dioxide emissions from electric utility steam
generating units exceeded the annual average level of
such emissions for the preceding 5-year period by at
least 6 percent; or
(B) the Secretary finds that significantly less
than the full amount of funding authorized for programs
under this Act has been appropriated, resulting in
substantial limitation to or delay of the technology
advancement elements of this Act; or
(2) after the end of a compliance period, only if the clean
electricity standard is not enforced for the compliance period.
(c) Clean Air Act Authorities.--Except as provided in this section,
neither a State nor the Administrator of the Environmental Protection
Agency may enforce any emission limitation established under title I of
the Clean Air Act (42 U.S.C. 7401 et seq.) for carbon dioxide emissions
from electric utility steam generating units.
(d) Definitions.--In this section:
(1) Clean electricity standard; program trigger date;
compliance period.--The terms ``clean electricity standard'',
``program trigger date'', and ``compliance period'' have the
meanings given such terms in section 611(h) of the Public
Utility Regulatory Policies Act of 1978, as added by section
402 of this Act.
(2) Electric utility steam generating unit.--The term
``electric utility steam generating unit'' has the meaning
given such term in section 112(a) of the Clean Air Act (42
U.S.C. 7412(a)).
TITLE V--MISCELLANEOUS
SEC. 501. ADDITIONAL REQUIREMENTS.
(a) Wages.--Notwithstanding any other provision of law and in a
manner consistent with other provisions in this Act, all laborers and
mechanics employed by contractors or subcontractors in the performance
of construction, alteration, or repair work funded directly by or
assisted in whole or in part by and through the Federal Government
pursuant to this Act shall be paid wages at rates not less than those
prevailing on projects of a character similar in the locality as
determined by the Secretary of Labor in accordance with subchapter IV
of chapter 31 of title 40, United States Code. With respect to the
labor standards specified in this section, the Secretary of Labor shall
have the authority and functions set forth in Reorganization Plan
Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 of
title 40, United States Code.
(b) Exception.--Subsection (a) shall not apply to the use of a
grant awarded under section 203.
SEC. 502. UTILIZATION OF QUALIFIED APPRENTICES BY CONSTRUCTION
CONTRACTORS.
(a) In General.--All contractors and subcontractors engaged in the
performance of construction, alteration, or repair work on a covered
project shall, subject to subsection (b), ensure that not less than 15
percent of the total labor hours of such work be performed by qualified
apprentices.
(b) Apprentice-to-Journeyworker Ratio.--The requirement under
subsection (a) 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 contractor and subcontractor who employs 4
or more individuals to perform construction, alteration, or repair work
on a covered project shall employ 1 or more qualified apprentices to
perform such work.
(d) Compliance.--(1) If the Secretary determines, upon receipt of a
complaint or on the Secretary's own initiative, that a covered project
is not being carried out in accordance with the requirements of this
section, the Secretary shall withhold from payments otherwise due the
contractor as a penalty, or require the payment by the contractor of a
penalty, in the amount of not less than $5,000, but not more than
$10,000, for each hour of the apprenticeship utilization requirement
that is not achieved.
(2) A determination by the Secretary under paragraph (1) shall be
grounds for contract termination.
(3) A contractor or subcontractor that violates the requirements of
this section shall be prohibited from performing work on any covered
project for 5 years.
(e) Reporting Requirements.--(1) Before commencing work on a
contract for a covered project, the contractor shall submit to the
recipient of assistance and the Secretary an estimate of--
(A) the total labor hours to be performed under the
contract; and
(B) the number of qualified apprentices proposed to be
employed under the contract, categorized by trade or craft.
(2) While the covered project is ongoing, the contractor shall
include with each payment application to the recipient of assistance
and Secretary a report containing the following information:
(A) The names of all qualified apprentices and their
apprentice registration or identification number.
(B) The number of qualified apprentices and labor hours
worked by them, categorized by trade or craft.
(C) The number of journey level workers and labor hours
worked by them, categorized by trade or craft.
(3) When a contractor is not subject to progress billing, the
contractor shall submit the periodic reports required by paragraph (2)
within a comparable time frame.
(4) Within 60 days after concluding work on the contract, the
contractor shall submit to the recipient of assistance and the
Secretary a verified statement of the total journeyworker and
apprentice hours performed on the project. The contractor and
subcontractors shall maintain all personnel records relating to the
reporting requirements of this subsection for a period of at least 3
years after final completion of the work.
(5) The information described in this subsection shall be public
and shall not be exempt from disclosure under section 552(b) of title
5, United States Code.
(6) If the Secretary determines that any of the information
required by this subsection contains false or misleading information
that was provided knowingly or with reckless disregard for the truth,
or omits information that was omitted knowingly or with reckless
disregard of the truth, the contractor or subcontractor for which the
information was submitted shall be prohibited from performing work on a
covered project for a period of 5 years, and shall be further subject
to penalties and sanctions, including contract termination.
(7) Any misrepresentation or omission included in the reporting
required by this subsection shall constitute a false record or
statement material to a false or fraudulent claim for purposes of
subchapter III of chapter 37 of title 31, United States Code.
(f) Waiver.--(1) Upon request by a contractor or recipient of
assistance, the Secretary may adjust the apprenticeship utilization
requirement otherwise applicable to the contract for a specific covered
project, when the contractor has provided documentary evidence of--
(A) a demonstrated lack of availability of qualified
apprentices in the geographic area in which the contract will
be performed; and
(B) a good-faith effort on the part of the contractor and
its subcontractors to comply with the apprenticeship
utilization requirement.
(2) A waiver granted under this subsection and the rationale of the
Secretary concerned for granting the waiver shall be public information
and shall not be exempt from disclosure under section 552(b) of title
5, United States Code.
(g) Contracting.--The recipient of assistance shall cause to be
inserted in a contract for a covered project stipulations to effectuate
the requirements of this section. The stipulations shall provide that
the contractor shall be jointly and severally liable for any violation
of the requirements of this section that is committed by one of its
subcontractors.
(h) Definitions.--In this section:
(1) The term ``contractor'' means a general contractor or
other lead or prime contractor on a covered project.
(2) The term ``covered project'' means construction,
alteration, or repair work assisted in whole or in part under
sections 111, 131, or 202 of this Act.
(3) The term ``labor hours'' means the total number of
hours devoted to the performance of construction activities (as
defined in Sector 23 of the North American Industry
Classification System) by employees of the contractor and its
subcontractors. The term excludes hours worked by foremen,
superintendents, owners, and persons employed in a bona fide
executive, administrative, or professional capacity as defined
in part 541 of title 29, Code of Federal Regulations.
(4) The term ``qualified apprentice'' means an employee of
a contractor or subcontractor participating in an
apprenticeship program as that term is defined in section
3131(e)(3)(B) of the Internal Revenue Code of 1986.
(5) The term ``Secretary'' means the Secretary of Energy.
(6) The term ``subcontractor'' means any person or company,
at any tier, that performs some or all of the obligations of
the contractor on a covered project.
(i) Preemption.--Nothing in this section shall preempt applicable
State or local laws or policies that provide for additional skilled and
trained workforce requirements on construction projects.
SEC. 503. REQUIREMENTS APPLICABLE TO TAX INCENTIVE PROGRAMS.
(a) In General.--A taxpayer seeking a credit under sections 121,
125, 204, 205, 206, 207, 302, and 307 of this Act, shall submit to the
Secretary of the Treasury, along with the taxpayer's timely filed
return, a declaration made under the penalties of perjury certifying
compliance with the requirements under subsection (b).
(b) Labor Standards.--The Secretary of the Treasury shall require a
taxpayer, as a condition of receiving a credit under a program
enumerated in subsection (a), to satisfy each of the following
requirements during the taxable year for which such credit is claimed
and any other period in which construction, alteration or repair work
was performed for purposes of qualifying for a credit set forth in
subsection (a):
(1) Wages.--All laborers and mechanics employed by
contractors or subcontractors in the performance of
construction, alteration, or repair work on any qualified
facility, energy storage property, electricity generation
facility, advanced nuclear power facility, qualifying advanced
energy project, qualified offshore wind property, or other
projects contemplated by the credit programs enumerated in
subsection (a), shall be paid wages at rates not less than
those prevailing on projects of a similar character in the
locality as determined by the Secretary of Labor in accordance
with subchapter IV of chapter 31 of title 40, United States
Code. With respect to the labor standards in this paragraph,
the Secretary of Labor shall have the authority and functions
set forth in Reorganization Plan Numbered 14 of 1950 (64 Stat.
1267; 5 U.S.C. App.) and section 3145 of title 40, United
States Code.
(2) Labor hours for qualified apprentices.--
(A) In general.--All contractors and subcontractors
engaged in the performance of construction, alteration,
or repair work on any project described in paragraph
(1) shall, subject to subparagraph (B), ensure that not
less than 15 percent of the total labor hours of such
work be performed by qualified apprentices.
(B) Apprentice-to-journeyworker ratio.--The
requirement under subparagraph (A) 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 contractor and
subcontractor who employs 4 or more individuals to
perform construction, alteration, or repair work on a
covered project shall employ 1 or more qualified
apprentices to perform such work.
(D) Reporting.--While the project is ongoing, the
contractor shall, with each payment application to the
taxpayer, include a report with the following:
(i) The names of all qualified apprentices
and their apprentice registration or
identification number.
(ii) The number of qualified apprentices
and labor hours worked by them, categorized by
trade or craft.
(iii) The number of journey level workers
and labor hours worked by them, categorized by
trade or craft.
Such reports shall be included with the taxpayer's
declaration under subsection (a).
(E) Maintenance of records.--The taxpayer, its
contractor, and subcontractors, shall maintain all
reports and personnel records relating to the
requirements of subparagraph (D) for a period of at
least 3 years after final completion of the work.
(F) Submission of records.--The taxpayer, its
contractor, and subcontractors, shall immediately
submit, upon request by the Secretary of Energy, the
documents described in subparagraphs (D) and (E).
Failure to produce such documents shall result in
penalties.
(G) Waiver.--The Secretary of the Treasury may,
upon request by a taxpayer, adjust the requirements of
subsection (b)(2) for a specific project, when the
taxpayer has provided documentary evidence of the
following:
(i) A demonstrated lack of availability of
qualified apprentices in specific geographic
areas.
(ii) A good faith effort on the part of the
taxpayer, its contractor and subcontractors to
comply with the requirements of subsection
(b)(2).
Such waivers and the rationale of the Secretary of the
Treasury for granting such waivers shall be public and
shall not be exempt from disclosure under section
552(b) of Title 5, United States Code.
(H) Definitions.--For purposes of this subsection:
(i) Contractor.--The term ``contractor''
means a general contractor or other lead or
prime contractor on a construction project
described in subsection (b)(2).
(ii) Labor hours.--The term ``labor hours''
means the total number of hours devoted to the
performance of construction activities (as
defined in Sector 23 of the North American
Industry Classification System) by employees of
the contractor and all subcontractors. The term
excludes hours worked by foremen,
superintendents, owners, and persons employed
in a bona fide executive, administrative, or
professional capacity as defined in part 541 of
title 29, Code of Federal Regulations.
(iii) Qualified apprentice.--The term
``qualified apprentice'' means an employee
participating in an apprenticeship program (as
such term is defined in section 3131(e)(3)(B)
of the Internal Revenue Code of 1986).
(iv) Subcontractor.--The term
``subcontractor'' means any person or company,
at any tier, that performs some or all of the
obligations of the contractor on a construction
project described in subsection (b)(2).
(I) Preemption.--Nothing in this subsection shall
preempt applicable State or local laws or policies that
provide for additional skilled and trained workforce
requirements on construction projects.
(c) Enforcement.--
(1) Investigations.--Upon receipt of a complaint or its own
initiative, the Secretary of Energy, in consultation with the
Secretary of Labor, shall request and review the weekly payroll
records of contractors and subcontractors engaged in the
performance of any construction, alteration, or repair work on
projects described in paragraphs (1) and (2) of subsection (b),
the reports set forth in subparagraphs (D) and (E) of
subsection (b)(2), and interview individuals employed by such
contractors and subcontractors, to determine whether the
requirements of paragraphs (1) and (2) of subsection (b) have
been met.
(2) Penalties.--The taxpayer shall be responsible for
compliance by any contractor or lower tier subcontractor
performing any construction, alteration, or repair work on
projects described in paragraphs (1) and (2) of subsection (b).
If the Secretary of Energy determines, upon receipt of a
complaint or its own initiative, that a project was not carried
out in accordance with the requirements of this section, the
taxpayer shall be liable to the Department of the Treasury for
the following:
(A) For violations of subsection (b)(1), the
taxpayer shall be liable for any unpaid wages. In
addition, the taxpayer shall be liable to the
Department of the Treasury for an administrative
penalty in the amount of not less than $1,000 but not
more than $5,000 per each individual not paid the
proper prevailing rate.
(B) For violations of subsection (b)(2), the
taxpayer shall be liable to the Department of the
Treasury in the amount of not less than $1,000, but not
more than $5,000, for each hour of the apprenticeship
utilization requirement that is not achieved.
(3) False statements.--If the Secretary of Energy, in
consultation with the Secretary of Labor, determines that any
of the information in a declaration under subsection (a) or
report under subsection (b)(2)(D) and (E), contains false or
misleading information that was provided knowingly or with
reckless disregard for the truth, or omits information that was
omitted knowingly or with reckless disregard of the truth, the
taxpayer shall no longer be eligible for any of the credits
enumerated in subsection (a), and shall be fined not less than
$5,000 but not more than $10,000.
(4) Transparency.--Declarations under subsection (a) and
reports under subsection (b)(2)(D) and (E) shall be publicly
available and the information contained therein shall not be
exempt from disclosure under section 552(b) of title 5, United
States Code.
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