[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9334 Introduced in House (IH)]
<DOC>
118th CONGRESS
2d Session
H. R. 9334
To strengthen domestic manufacturing, bring next generation iron and
steel back to the United States, and revitalize deindustrialized
regions.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
August 9, 2024
Mr. Khanna (for himself, Mr. Deluzio, Ms. Kaptur, Ms. Stevens, Mrs.
Dingell, Ms. Adams, Mr. Davis of North Carolina, Ms. Budzinski, Mr.
Lynch, Mrs. Foushee, Ms. Lee of Pennsylvania, and Mr. Thanedar)
introduced the following bill; which was referred to the Committee on
Ways and Means, and in addition to the Committee on Energy and
Commerce, for a period to be subsequently determined by the Speaker, in
each case for consideration of such provisions as fall within the
jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To strengthen domestic manufacturing, bring next generation iron and
steel back to the United States, and revitalize deindustrialized
regions.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Steel
Modernization Act of 2024''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--INDUSTRIAL INNOVATION
Sec. 101. Covered financial assistance.
Sec. 102. Contract for differences pilot program.
Sec. 103. Near-zero emissions intensity iron production credit.
Sec. 104. Green iron and steel facility energy investment credits.
Sec. 105. Study and report on demand generation.
Sec. 106. Report on strategy to bring zero-greenhouse gas emissions
electricity to the electric grid.
Sec. 107. Prohibition.
Sec. 108. Definitions.
TITLE II--TARIFF ON DIRTY IMPORTED STEEL
Sec. 201. Calculation of emissions intensity.
Sec. 202. Imposition of emissions intensity tariff.
Sec. 203. Definitions.
TITLE III--EXPENDITURE OF REVENUES
Sec. 301. Administrative expenses.
Sec. 302. Economic Support Fund.
TITLE I--INDUSTRIAL INNOVATION
SEC. 101. COVERED FINANCIAL ASSISTANCE.
(a) In General.--The Secretary of Energy shall, subject to the
availability of appropriations for such purpose, award eligible
entities covered financial assistance in accordance with this section.
(b) Covered Financial Assistance.--The Secretary of Energy may
award, on a competitive basis, covered financial assistance to an
eligible entity to carry out a project for--
(1) construction of an eligible facility that will use an
advanced industrial iron technology or an advanced industrial
steel technology;
(2) the purchase, installation, or implementation, of an
advanced industrial iron technology or an advanced industrial
steel technology at an eligible facility;
(3) retrofits, upgrades to, or operational improvements at,
an eligible facility to install or implement an advanced
industrial iron technology or an advanced industrial steel
technology at such eligible facility;
(4) demonstration of an early-stage advanced industrial
iron technology or an early-stage advanced industrial steel
technology at an eligible facility; or
(5) engineering studies and other work needed to construct
an eligible facility described in paragraph (1) or prepare an
eligible facility for activities described in paragraph (2),
(3) or (4).
(c) Application.--
(1) In general.--To be eligible to receive covered
financial assistance under this section, an eligible entity
shall submit to the Secretary of Energy an application at such
time, in such manner, and containing such information as the
Secretary may require, including--
(A) a plan for the proposed project, including a
description of--
(i) the technical and commercial viability
of the applicable advanced industrial iron
technology or advanced industrial steel
technology;
(ii) how the project will enable the steel
or iron industry to decrease its greenhouse gas
emissions; and
(B) a description of how the eligible entity plans
to source domestically produced material, including
iron and steel, for all construction related to the
proposed project;
(C) any new iron, steel, or other metal production
capacity expected;
(D) the expected greenhouse gas emissions
reductions to be achieved at the eligible facility and
the methods for calculating such emissions reductions;
(E) the expected number of new jobs that will be
created;
(F) the expected number of jobs retained that may
have otherwise been terminated;
(G) the expected impact on production and capacity
at existing facilities, including any related plans to
idle or close a facility or layoff or reduce hours for
current employees;
(H) a breakdown of costs of the project, including
a proposed Federal Government share of total costs;
(I) a plan to recruit and train, and provide
employment and advancement for women, people of color,
people of lower economic status, and other minorities;
(J) assurances that all laborers and mechanics
employed by the eligible entity or any contractor or
subcontractor in the performance of construction,
alteration, or repair work (including retrofits,
upgrades, and any other improvements) carried out, in
whole or in part, with covered financial assistance
made available under 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
subsection, the Secretary of Labor shall have the
authority and functions set forth in Reorganization
Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.)
and section 3145 of title 40, United States Code;
(K) with respect to any eligible facility for which
the total estimated cost of the construction contract
is $25,000,000 or more, an assurance that every
contractor and subcontractor engaged in the
construction on the project agree, for that project, to
negotiate or become a party to a project labor
agreement as that term is defined in section 22.502 of
title 48, Code of Federal Regulations; and
(L) for eligible entities that are applying for
more than $50,000,000 of covered financial assistance
under this section--
(i) a plan for how the eligibly entity will
carry out the training program described in
subsection (g)(1);
(ii) a community benefits plan that meets
the requirements of subsection (h); and
(iii) a commitment and plan to conduct town
halls with local communities, including
frontline communities, membership-based
nonprofit organizations with members in the
community, and labor organizations, and get
letters of support from community groups
representing a broad range of constituencies
that demonstrate that the groups understand the
eligible entity's planned project and agree to
it.
(2) Evaluation criteria.--The Secretary of Energy shall
publish criteria on evaluating applications submitted under
this subsection.
(d) Requirements for Awardees.--
(1) Production and emission intensity requirements.--
(A) In general.--An eligible facility with respect
to which covered financial assistance under this
section is awarded shall--
(i) begin production of near-zero emissions
intensity steel or near-zero emissions
intensity iron not later than the earlier of--
(I) January 1, 2035; and
(II) the date that is 7 years after
the date on which covered financial
assistance for the project is received
by the applicable eligible entity; and
(ii) after the date of production described
in clause (i) begins, only produce iron that is
near-zero emissions intensity iron or steel
that is near-zero emissions intensity steel.
(B) Projects to upgrade blast furnaces.--
(i) In general.--An eligible facility with
respect to which covered financial assistance
under this section is awarded for any project
to upgrade a blast furnace that actively
produces iron as of the date of enactment of
this Act shall achieve at least a 50 percent
reduction in emissions intensity at the start
of production of near-zero emissions intensity
iron relative to average emissions intensity of
the iron produced by the eligible facility
between June 1, 2023, and June 1, 2024.
(ii) Use of clean hydrogen.--For a project
described in clause (i) that will upgrade to a
direct reduced iron furnace, such direct
reduced iron furnace shall--
(I) be capable of using 100 percent
hydrogen to reduce iron ore;
(II) blend at least 10 percent non-
fossil based hydrogen not later than 2
years after the direct reduced iron
furnace commences operation; and
(III) use 100 percent clean
hydrogen by the earlier of the dates
described in clause (i).
(iii) Modifications to requirements.--In
the event that hydrogen is not available in
sufficient volumes or at reasonable price (as
determined by the Secretary of Energy, in
consultation with stakeholders from relevant
industries) the Secretary may, as the Secretary
determines appropriate, modify any requirement
under clause (ii).
(2) Emissions reporting requirements.--
(A) Reporting to doe.--An eligible entity awarded
covered financial assistance under this section shall
report to the Secretary of Energy any greenhouse gas
emissions (determined on a mine-to-metal basis),
related to the production by the applicable eligible
facility of iron or steel after the date on which
covered financial assistance is received by the
eligible entity.
(B) Eligible facility specific environmental
product declarations.--An eligible entity awarded
covered financial assistance under this section shall
offer to provide buyers of the near-zero emissions
intensity steel or near-zero emissions intensity iron
produced at the applicable eligible facility
environmental product declarations that are--
(i) specific to the near-zero emissions
intensity steel or near-zero emissions
intensity iron produced at such eligible
facility; and
(ii) updated at least annually, beginning
not later than 12 months after production of
such near-zero emissions intensity steel or
near-zero emissions intensity iron begins.
(3) Training.--Eligible entities that receive covered
financial assistance of more than $50,000,000 under this
section shall meet the requirements under subsection (g).
(4) Community benefits.--Eligible entities that receive
covered financial assistance of more than $50,000,000 under
this section shall meet the requirements under subsection (h).
(5) Wages.--Eligible entities that receive covered
financial assistance under this Act shall comply with the
requirements under subsection (c)(1)(J).
(6) Project labor agreements.--With respect to any eligible
facility for which the total estimated cost of the construction
contract is $25,000,000 or more, the eligible entity shall
comply with the requirements under subsection (c)(1)(K).
(e) Priority.--The Secretary of Energy shall--
(1) in awarding covered financial assistance under this
section, give priority--
(A) to eligible entities that will support training
of current and former workers to build skills required
to work in an upgraded or new facility and retention of
such current workers;
(B) to eligible entities that will ensure the
utilization of registered apprentices during the
construction of the eligible facility in accordance
with the standards and requirements set forth in parts
29 and 30 of title 29, Code of Federal Regulations;
(C) to projects that will be carried out in
existing or legacy iron or steel-making communities;
(D) to eligible entities that commit to hiring at
least 25 percent of the applicable workforce from an
existing or legacy iron or steel-making community;
(E) to projects based on the extent to which the
applicable project would provide the greatest benefit
to the greatest number of people within the
metropolitan area in which the eligible facility is
located;
(F) to projects based on the expected greenhouse
gas emissions reductions to be achieved by carrying out
the applicable project;
(G) to projects based on the extent to which the
applicable project will enable the steel or iron
industry to decrease its greenhouse gas emissions by
2050;
(H) to projects that will result in the largest
improvement in air quality;
(I) to projects to upgrade blast furnaces that
actively produce iron as of the date of enactment of
this Act;
(J) to eligible entities based on whether the
applicable eligible entity participates or would
participate in a program that connects producers of
near-zero emissions intensity steel or near-zero
emissions intensity iron with buyers of such near-zero
emissions intensity steel or near-zero emissions
intensity iron;
(K) to eligible entities that commit, and provide a
plan, to source at least 30 percent of electricity for
use at the project site from zero-carbon sources within
2 years of receiving the covered financial assistance,
and use 100 percent zero-carbon electricity by 2035,
with the Secretary of Energy determining the rate at
which such zero-carbon electricity use should scale to
100 percent; and
(L) to projects that would result in an increased
supply of iron or steel products that are needed by
current and prospective end users as identified through
a request for information issued not later than 2
months after the date of enactment of this Act by the
Department of Energy's Office of Clean Energy
Demonstrations; and
(2) in awarding covered financial assistance for over
$50,000,000 under this section, give priority to eligible
entities that commit to--
(A) employing local individuals and individuals
from frontline communities, and providing robust
training, workforce development opportunities,
mentorship programs and career advancement
opportunities to these individuals;
(B) and provide a plan for--
(i) contracting with an objective and
independent third party to conduct a report to
forecast the impact of the applicable proposed
project on pollution and health of individuals
in the project area; and
(ii) contracting with an objective and
independent third party to conduct air quality
monitoring before any construction associated
with the proposed project begins and continuing
until 6 months after such construction ends, in
frontline communities that are exposed to
persistent air pollution and within 25 miles of
the metropolitan area where which such
construction will occur; and
(C) building new zero-carbon electricity generation
capacity, hydrogen generation capacity, or energy
storage capacity.
(f) Cost Share and Amounts.--
(1) Cost share.--The non-Federal cost share of a project
for which covered financial assistance is provided under this
section shall be not less than 50 percent, as determined by the
Secretary of Energy.
(2) Alignment with emissions intensity.--The Secretary of
Energy shall determine the cost-share and amount of covered
financial assistance awarded to an eligible entity under this
section based on the final emissions intensity of the near-zero
emissions intensity steel or near-zero emissions intensity iron
to be produced.
(3) Total amount.--The amount of covered financial
assistance provided under this section shall not exceed
$500,000,000 per project.
(4) Inflation adjustment.--
(A) In general.--In the case of any calendar year
beginning after 2024, there shall be substituted for
any dollar amount described in subparagraph (B), an
amount equal to the product of--
(i) such dollar amount, multiplied by
(ii) the inflation adjustment factor for
such calendar year determined under section
43(b)(3)(B) of the Internal Revenue Code of
1986 for such calendar year, determined by
substituting ``2023'' for ``1990''.
(B) Amounts described.--Subparagraph (A) shall
apply with respect to each dollar amount in--
(i) subsection (c)(1)(J);
(ii) subsection (e)(2);
(iii) paragraph (3) of this subsection;
(iv) subsection (g)(1); and
(v) section 201.
(g) Supporting Good Careers.--
(1) Training required.--
(A) In general.--Beginning on the date that an
eligible entity receives any amount of covered
financial assistance under this Act in excess of
$50,000,000, and ending on the date that is 5 years
after the date the eligible entity received such
covered financial assistance, an eligible entity
shall--
(i) carry out a training program described
in subparagraph (B);
(ii) reserve 5 percent of the labor costs
of the eligible entity to carry out such
training program; and
(iii) not later than 12 months after any
such receipt, certify to the Secretary that the
eligible entity is carrying out such training
program.
(B) Training requirements.--
(i) In general.--An eligible entity
required to carry out a training program
required under subparagraph (A)(i) shall
satisfy the following requirements:
(I) Participants in the training
program shall be trained to learn
skills or knowledge that are related to
the production of near-zero emissions
intensity iron or near-zero emissions
intensity steel.
(II) Such participants shall be
existing employees, new hires, or
prospective employees of the eligible
entity.
(III) The participants shall be
paid at a rate equivalent to that of an
individual working full-time in the
position for which they are training.
(IV) If a participant is not
guaranteed full-time employment with
the eligible entity after the
completion of the training program,
such a participant shall be provided a
stipend (as described in clause (ii))
on a weekly basis.
(V) An eligible entity shall
provide to each individual who
completes the training program a
certificate of completion that states
the skills and knowledge taught during
the program.
(ii) Stipend.--
(I) Amount.--The Federal share of a
stipend provided to an individual
described in clause (i)(IV) shall be--
(aa) equal to $500 for each
month; and
(bb) not more than $2500 in
aggregate.
(II) Relationship to other
programs.--A stipend provided to an
individual described in clause (i)(IV)
shall not be taken into account in
determining the need or eligibility of
such individual for any Federal, State,
or local program financed in whole or
in part with Federal funds.
(C) Government match.--
(i) Amount.--During the period described in
subparagraph (A), the Secretary of Energy shall
provide to an eligible entity, on a monthly
basis for each individual participating in
training program carried out by the eligible
entity, the lesser of--
(I) $500; or
(II) an amount not to exceed 25
percent of--
(aa) the training
participant's salary described
in subparagraph (B)(iii); or
(bb) if the training
participant is not guaranteed
full-time employment after
completion of the training
program, the stipend provided
to the training participant.
(ii) Maximum.--The Secretary of Energy may
not provide to an eligible entity more than
$2,500 per training participant for each
instance of covered financial assistance
provided to the eligible entity.
(D) Labor-management committee.--An eligible entity
described in subparagraph (A) shall establish a labor-
management committee that--
(i) oversees the training program required
under subparagraph (A)(i);
(ii) regularly raises safety concerns to
the eligible entity for the eligible entity to
address; and
(iii) provides to the eligible entity a
reasonable process and time line to address
such concerns to mitigate injuries at the
workplace.
(2) Labor representation.--
(A) In general.--With respect to the employees
employed by an eligible entity at an eligible facility
that is supported by covered financial assistance
provided under this Act, the eligible entity that
employs such employees, and any labor organization that
seeks to represent such employees, this paragraph shall
supersede the National Labor Relations Act (29 U.S.C.
151 et seq.) to the extent that such Act conflicts with
this paragraph.
(B) Recognition.--An eligible entity described in
subparagraph (A) shall recognize, for purposes of
collective bargaining, a labor organization that
demonstrates that a majority of the employees at an
eligible facility described in subparagraph (A), in a
unit appropriate for collective bargaining, have signed
valid authorizations designating the labor organization
as their collective bargaining representative and that
no other labor organization is certified or recognized
pursuant to section 9 of the National Labor Relations
Act (29 U.S.C. 159) as the exclusive representative of
any of the employees in such unit who perform or will
perform such work. Upon demonstrating that a majority
of the employees in the unit have designated a labor
organization as their collective bargaining
representative, the eligible entity shall notify the
labor organization and the National Labor Relations
Board that the eligible entity--
(i) has determined that the labor
organization represents a majority of the
employees in such unit who perform or will
perform such work; and
(ii) recognizes such labor organization as
the exclusive representative of the employees
in such unit.
(C) Dispute resolution and unit certification.--
(i) In general.--If a dispute over majority
status or the appropriateness of the unit
described in subparagraph (B) arises between
the eligible entity and the labor organization,
either party may request that the National
Labor Relations Board investigate and resolve
the dispute.
(ii) Finding of majority status.--If the
Board finds that a majority of the employees in
a unit appropriate for purposes of collective
bargaining who perform or will perform work
funded under this section has signed valid
authorizations designating the labor
organization as their representative for such
purposes and that no other individual or labor
organization is certified or recognized as the
exclusive representative of any of the
employees in the unit who perform or will
perform such work for such purposes, the Board
shall not direct an election but shall certify
the labor organization as the representative
described in section 9(a) of the National Labor
Relations Act (29 U.S.C. 159(a)).
(D) Meetings and collective bargaining
agreements.--Not later than 10 days after an eligible
entity described in subparagraph (A) receives a written
request for collective bargaining from a labor
organization representing the employees of the entity
who perform or will perform work at an eligible
facility that is supported by funds provided pursuant
to this Act, or within such period as the parties may
agree upon, the labor organization and eligible entity
shall meet to begin bargaining and shall make every
reasonable effort to conclude and sign a collective
bargaining agreement.
(E) Mediation and conciliation.--If, after the
expiration of the 90-day period beginning on the date
on which collective bargaining is commenced under
subparagraph (D), or such additional period as the
parties may agree upon, the parties have failed to
reach an agreement, either party may notify the Federal
Mediation and Conciliation Service (referred to in this
paragraph as the ``Service'') of the existence of a
dispute and request mediation. Whenever such a request
is received, it shall be the duty of the Service
promptly to communicate with the parties and to use its
best efforts, by mediation and conciliation, to bring
them to agreement.
(F) Tripartite arbitration.--
(i) In general.--If, after the expiration
of the 30-day period beginning on the date on
which the request for mediation is made under
subparagraph (E), or such additional period as
the parties may agree upon, the Service is not
able to bring the parties to agreement by
mediation and conciliation, the Service shall
refer the dispute to a tripartite arbitration
panel established in accordance with such
regulations as may the Service may prescribe.
(ii) Members.--A tripartite arbitration
panel established under this subparagraph with
respect to a dispute shall be composed of 1
member selected by the labor organization, 1
member selected by the eligible entity, and 1
neutral member mutually agreed to by the labor
organization and the eligible entity. Each such
member shall be selected not later than 14 days
after the expiration of the 30-day period
described in clause (i) with respect to such
dispute. Any member not so selected by the date
that is 14 days after the expiration of such
period shall be selected by the Service.
(iii) Decisions.--
(I) In general.--A majority of a
tripartite arbitration panel
established under this subparagraph
with respect to a dispute shall render
a decision settling the dispute as soon
as practicable and (absent
extraordinary circumstances or by
agreement of the parties) the panel
shall render such decision not later
than 120 days after the establishment
of the panel.
(II) Length of decision.--Such a
decision shall be binding upon the
parties for a period of 2 years, unless
amended during such period by written
consent of the parties.
(III) Decision considerations.--The
panel shall consider the following when
making a decision:
(aa) The financial status
and future financial status of
the eligible entity.
(bb) The size and type of
the operation and business of
the eligible entity.
(cc) The cost of living of
the employees employed by the
eligible entity.
(dd) The ability of such
employees to sustain
themselves, their families, and
their dependents on the wages
and benefits earned from the
eligible entity.
(ee) The wages and benefits
other employees earn in the
same or a similar industry.
(G) Contractors and subcontractors.--An eligible
entity described in subparagraph (A) may only procure
goods or services from a contractor or subcontractor,
whose employees perform or will perform work funded
under this section, if the contractor or subcontractor
comply with the requirements set forth in subparagraphs
(A) through (F).
(H) Definitions.--In this paragraph, the terms
``employee'' and ``labor organization'' have the
meanings given the terms in section 2 of the National
Labor Relations Act (29 U.S.C. 152).
(I) Limitation of funds.--An eligible entity may
not assist, promote, or deter organizing of labor
organizations.
(3) Sense of congress.--It is the sense of Congress that--
(A) the United States must tap into all our
Nation's talent in order to successfully usher in an
industrial renaissance in the United States;
(B) building a factory is not enough, it is
necessary to build the infrastructure and ecosystem to
power such factory;
(C) the United States must make sure jobs in the
iron and steel industries, and in all industries, are
good jobs, that all workers have quality, affordable
childcare and healthcare, and that all jobs pay a
family-sustaining wage;
(D) child care is critical to expanding employment
opportunities for economically disadvantaged
individuals, especially for economically disadvantaged
women and children; and
(E) to meet families' needs and expand employment
opportunity, child care should be--
(i) affordable, with costs in reach for
low- and medium-income households;
(ii) accessible, at a convenient location
with hours that meet workers' needs;
(iii) reliable, giving workers confidence
that they will not need to miss work for
unexpected child care issues; and
(iv) high-quality, providing a safe and
healthy environment that families can trust and
that nurtures the healthy growth and
development of children.
(h) Community Benefits.--
(1) Advisory council.--
(A) Establishment.--
(i) In general.--The Secretary of Energy
and the Administrator of the Environmental
Protection Agency, in consultation with, and
written approval from, the White House
Environmental Justice Advisory Council, shall
jointly establish an advisory council (in this
section referred to as the ``advisory
council'') to--
(I) not later than 5 months after
the date of enactment of this Act,
submit to the Secretary of Energy
guidance on--
(aa) information to be
included in a community
benefits plan under this
section; and
(bb) criteria for weighing
the strength of a community
benefits plan submitted under
this section;
(II) not later than 2 years after
the date of enactment of this Act,
submit to the Secretary of Energy
guidance on information to be included
in a community benefits agreement under
this section; and
(III) act as a liaison to
communities described in paragraph
(3)(A) by sharing--
(aa) information and
resources developed by the
Department of Energy or
eligible entity applicants
about the proposed projects and
their environmental, public
health, and jobs impacts; and
(bb) community input with
eligible entity applicants and
the Secretary of Energy in
order to facilitate the
drafting of community benefits
plans.
(ii) Formation.--In establishing the
advisory council, the Secretary of Energy and
the Administrator of the Environmental
Protection Agency shall jointly--
(I) publish in the Federal Register
an announcement about its formation;
and
(II) conduct targeted outreach and
recruiting to ensure there is adequate
stakeholder representation on the
advisory council.
(B) Representatives.--
(i) In general.--The advisory council shall
consist of representatives from existing or
legacy iron or steel-making communities,
communities that will be significantly affected
by the steel supply chain, labor organizations,
civil society and public interest advocates who
represent the interests of such communities,
membership-based nonprofit organizations with
members in the community, constituencies of
such communities, and individuals who have
experience negotiating workforce and community
benefits agreements.
(ii) Additional representatives.--The
Secretary of Energy may add additional members
to the advisory council who represent
communities described in paragraph (3)(A), as
determined appropriate by the Secretary.
(iii) Compensation.--Frontline community
members who serve on the advisory council shall
be compensated for their time using funds made
available to carry out this Act.
(iv) Participation.--Participation in the
advisory council does not preclude members from
also serving in a community benefits group
described in paragraph (6).
(2) Guidelines.--
(A) Request for information.--Not later than 1
month after the date of enactment of this Act, the
Secretary of Energy shall publish a request for
information (to remain open for a period of not less
than 3 months) soliciting information from individuals
living in existing or legacy iron or steel-making
communities and individuals with experience negotiating
community benefits agreements on criteria that should
be included in guidelines for community benefits plans
and guidelines community benefits agreements under this
subsection.
(B) Publication.--The Secretary of Energy shall
develop and, not later than 5 months after the date of
enactment of this Act, publish on the platform
established under this subsection guidelines and
required inclusions for community benefits plans and
guidelines and required inclusions for community
benefits agreements under this subsection. In
developing such guidelines and required inclusions, the
Secretary shall take into consideration any information
solicited pursuant to subparagraph (A), guidance
submitted by the advisory council under paragraph
(1)(A), and any relevant information from existing
community benefits plan processes of the Department of
Energy, including for the Industrial Demonstrations
Program of the Department of Energy.
(C) Updates.--The Secretary of Energy may update
the guidelines published under subparagraph (B) as the
Secretary determines appropriate.
(3) Required inclusions.--A community benefits plan
required to be included in an application under this section
shall include the following:
(A) A stakeholder analysis that--
(i) identifies any community that is
located in an area that is within a 25 mile
radius of the applicable eligible facility, and
members of such a community, that may be
impacted by the applicable proposed project or
by operation of the applicable eligible
facility, including impacts on social,
economic, and environmental conditions,
including cumulative effects, and impacts on
members of such a community who are
traditionally excluded from decision-making
processes; and
(ii) examines potential reasons for such
exclusion, including community history and
dynamics, including social, cultural,
environmental, economic, and political
landscapes.
(B) Information on prior and ongoing efforts by the
applicant to engage local stakeholder groups who may be
impacted by the applicable proposed project or by
operation of the applicable eligible facility.
(C) A description of existing concerns impacting
communities described in subparagraph (A) that have
already been identified through input to the advisory
council and other government tools or surveys that
enable government agencies to understand the economic,
social, environmental, and labor circumstances of these
communities, including the Climate and Economic Justice
Screening Tool, academic research, media reports,
citizen enforcement actions for permit violations, and
public hearings.
(D) A description of potential concerns impacting
communities described in subparagraph (A) emanating
from the applicable proposed project or operation of
the applicable eligible facility.
(E) A description of benefits that the applicable
eligible entity can deliver to communities described in
subparagraph (A) that reflect the eligible entity's
understanding of such existing concerns and such
potential concerns.
(F) A strategy for--
(i) sharing the descriptions under
subparagraphs (C), (D), and (E);
(ii) disseminating the community benefits
plan; engaging with communities described in
subparagraph (A); and
(iii) incorporating such communities'
feedback into any applicable community benefits
agreement.
(G) A strategy for reporting and verifying progress
on delivering the benefits described in subparagraph
(E) with communities described in subparagraph (A).
(H) A description of the resources that the
eligible entity plans to provide to ensure the full
participation of communities described in subparagraph
(A) in discussions with the eligible entity, including
participation of members of such communities who are
traditionally excluded from decision-making processes,
including providing facts regarding the potential
impacts of the proposed project and operation of the
applicable eligible facility after completion of such
project on such communities, monetary resources to
compensate for members of the applicable community
benefits group described in paragraph (6) for their
time, experts who can interpret the information shared
by the eligible entity and represent such communities'
perspectives, and other support measures to facilitate
engagement, such as providing childcare and food during
discussions.
(I) A commitment to, and a plan for how such
eligible entity will, cover the costs of training and
skills and knowledge acquisition for community liaisons
focused on air quality monitoring and reduction of air
pollution.
(J) A commitment to, and a plan for how such
eligible entity will, regularly and actively engage
with frontline communities and leaders to determine and
develop legally binding community benefit agreements
and report progress on its execution.
(K) Any additional information the Secretary of
Energy determines appropriate based on the guidance
submitted by the advisory council pursuant to paragraph
(1).
(4) Consideration.--The strength of a community benefits
plan submitted pursuant to this section, as determined by the
Department of Energy Merit Reviewer process, shall constitute
at least 20 percent of the graded criteria in determining
whether to award covered financial assistance under this
section.
(5) Platform.--
(A) Establishment.--The Secretary of Energy shall
establish a platform to host the text of each--
(i) community benefits plan submitted by an
eligible entity awarded covered financial
assistance under this section;
(ii) memorandum of understanding described
in paragraph (6); and
(iii) final community benefits agreement
entered into pursuant to paragraph (7).
(B) Redacted information.--The Secretary of Energy
may, on a case-by-case basis, redact confidential
business information from the platform established
under subparagraph (A).
(6) Memorandum of understanding.--
(A) In general.--Not later than 6 months after
initial receipt of covered financial assistance under
this section, an eligible entity awarded such covered
financial assistance shall seek to enter into a
memorandum of understanding with a community benefits
group described in subparagraph (C).
(B) Inclusions.--A memorandum of understanding
under this paragraph shall include a commitment to
enter into a community benefits agreement in accordance
with paragraph (7).
(C) Membership of community benefits group.--A
community benefits group described in this subparagraph
shall include individuals who represent the communities
identified in paragraph (3)(A), including members of
such communities who are traditionally excluded from
decision-making processes.
(D) Recruitment.--An eligible entity awarded
covered financial assistance under this section shall
recruit individuals described in subparagraph (C) to
serve on a community benefits group described in such
subparagraph and publicize the opportunity for
additional stakeholders to self-identify and self-
nominate to the community benefits group.
(E) Compensation.--Members of a community benefits
group described in subparagraph (C) shall be
remunerated for their time and receive resources in
accordance with the eligible entity's community
benefits plan.
(7) Community benefits agreement.--
(A) In general.--Not later than one year after
entering into a memorandum of understanding with a
community benefits group in accordance with paragraph
(6), an eligible entity awarded covered financial
assistance under this section shall seek to enter into
a legally binding community benefits agreement with
such community benefits group.
(B) Compensation and expenses.--
(i) Compensation.--Members of the community
benefits group participating in negotiations of
a community benefits agreement shall be
remunerated for their time and receive
resources that facilitate their engagement.
Failure to enter into a community benefits
agreement pursuant to this subsection shall not
eliminate the obligation of an eligible entity
to reimburse the applicable community benefits
group and any other member of the impacted
community who is participating in such
negotiations for their time engaging with the
eligible entity.
(ii) Legal representation.--A community
benefits group described under subparagraph (A)
shall select its own legal representation for
all matters relating to a community benefits
agreement, which will be paid for by the
applicable eligible entity described in such
subparagraph.
(C) Mediation required.--Any dispute that cannot be
resolved within a reasonable period of time (as
determined by the Secretary of Energy) between a
community benefits group and eligible entity under this
section shall be resolved through mediation with a
mediator selected by the community benefits group.
(D) Community letter.--If a community benefits
agreement is not entered into by the deadline under
subparagraph (A), the applicable eligible entity shall
be required to submit to the Secretary of Energy a
letter from the applicable community benefits group
ascertaining good faith effort by the eligible entity
in order for the eligible entity to remain eligible to
receive covered financial assistance and extend the
time allowed for negotiations with community. In order
for currently operating iron and steel facilities to
remain eligible for covered financial assistance, the
Administrator of the Environmental Protection Agency
shall additionally confirm through the Environmental
Protection Agency's modeling the emissions and co-
pollution reduction potential stipulated in this Act
and the award decision.
(E) Consequences for failure to adhere to
agreement.--Failure to enter into a community benefits
agreement by the deadline under subparagraph (A) and to
submit a letter pursuant to subparagraph (D), or
failure to abide by a community benefits agreement
entered into pursuant to this subsection, shall result
in the suspension of funding under this section.
(i) Denial of Double Benefit.--
(1) Section 48C(f) of the Internal Revenue Code of 1986 is
amended to read as follows:
``(f) Denial of Double Benefit.--A credit shall not be allowed
under this section for any qualified investment--
``(1) with respect to which any covered financial
assistance was awarded under section 101 of the Steel
Modernization Act of 2024, or
``(2) for which a credit is allowed under section 48, 48A,
48B, 48E, 45Q, or 45V.''.
(2) Effective date.--The amendment made by this subsection
shall apply to property placed in service after the date of the
enactment of this Act.
(j) Limitation.--Covered financial Assistance awarded under this
section may not be used for the construction, installation, use, or
maintenance of equipment involved in the capture or sequestration of
carbon oxides.
(k) Termination of Awards.--The Secretary of Energy may not award
covered financial assistance under this section after December 31,
2032.
(l) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $10,000,000,000.
SEC. 102. CONTRACT FOR DIFFERENCES PILOT PROGRAM.
(a) Establishment of Pilot Program.--The Secretary of Energy shall
establish a pilot program to enter into contracts, on a competitive
basis, with entities for payment of costs associated with the
production or purchase of near-zero emissions intensity steel.
(b) Selection.--
(1) Minimum number.--Not later than 10 years after the date
of enactment of this Act, the Secretary shall enter into at
least 2 contracts under the pilot program established under
this section, with each contract term for a period of no longer
than 5 years.
(2) Direct reduced iron furnace.--At least one of the
contracts entered into under paragraph (1) shall be for payment
of costs associated with the production or purchase of near-
zero emissions intensity steel that is produced using a direct
reduced iron furnace.
(c) Amount.--The amount of a payment, with respect to near-zero
emissions intensity steel described in subsection (a), to an entity
with which the Secretary of Energy has entered into a contract under
the pilot program established under subsection (a) shall be--
(1) the cost of such near-zero emissions intensity steel
that is produced or purchased; minus
(2) the applicable fair market value, as determined by the
Secretary of Energy, to produce or purchase an equal quantity
of conventional steel.
(d) Wages and Project Labor Agreement Requirements.--An eligible
entity that enters into a contract under the pilot program established
under this section shall--
(1) comply with the requirements under section
101(c)(1)(J); and
(2) with respect to any eligible facility for which the
total estimated cost of the construction contract is
$25,000,000 or more, comply with the requirements under section
101(c)(1)(K).
(e) Authorization of Appropriations.--There is authorized to be
appropriated $500,000,000 to carry out this section.
SEC. 103. NEAR-ZERO EMISSIONS INTENSITY IRON PRODUCTION CREDIT.
(a) In General.--Subpart D 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. 45BB. NEAR-ZERO EMISSIONS INTENSITY IRON PRODUCTION CREDIT.
``(a) In General.--For purposes of section 38, in the case of an
eligible taxpayer, the near-zero emissions intensity iron production
credit for any taxable year is an amount equal to $89 per ton of near-
zero emissions intensity iron produced by the taxpayer at an eligible
facility during such taxable year.
``(b) Limitation.--The amount determined under subsection (a) with
respect to iron produced at an eligible facility with respect to which
a credit was allowed under section 38 by reason of subsection (a) for
10 prior taxable years shall be zero.
``(c) Definitions.--For purposes of this section--
``(1) Eligible taxpayer.--The term `eligible taxpayer'
means a taxpayer that--
``(A) is not under the influence, control, or
ownership of a foreign entity of concern (as defined in
section 108 of the Steel Modernization Act of 2024),
``(B) has, with respect to any eligible facility
with respect to which a credit is determined under
section 38 by reason of this section for a taxable
year, fulfilled the following requirements at all times
during such taxable year:
``(i) The requirements described in
paragraphs (1), (5), and (6) of section 101(d)
of the Steel Modernization Act of 2024.
``(ii) All requirements made applicable to
any entity described in section 101(g) of the
Steel Modernization Act of 2024.
``(2) Eligible facility; near-zero emissions intensity
iron.--The terms `eligible facility' and `near-zero emissions
intensity iron' have the meanings given such terms in section
108 of the Steel Modernization Act of 2024.
``(d) No Double Benefit.--The amount determined under subsection
(a) with respect to any near-zero emissions intensity iron which was
produced pursuant to a contract established under section 102 of the
Steel Modernization Act of 2024 shall be zero.
``(e) Inflation Adjustment.--In the case of any taxable year
beginning in a calendar year after 2024, there shall be substituted for
the dollar amount in subsection (a) an amount equal to the product of--
``(1) such dollar amount, multiplied by
``(2) the inflation adjustment factor for such calendar
year determined under section 43(b)(3)(B) for such calendar
year, determined by substituting `2023' for `1990'.
``(f) Sunset.--This section shall not apply to taxable years
beginning after December 31, 2045.''.
(b) Credit Allowed as Part of General Business Credit.--Section
38(b) of such Code is amended by striking ``plus'' at the end of
paragraph (40), by striking the period at the end of paragraph (41) and
inserting ``, and'', and by adding at the end the following new
paragraph:
``(42) in the case of an eligible taxpayer (as defined in
section 45BB(c)), the near-zero emissions intensity iron
production credit determined under section 45BB(a).''.
(c) Clerical Amendment.--The table of sections for subpart D of
subchapter A of chapter 1 of such Code is amended by adding at the end
the following new item:
``Sec. 45BB. Near-zero emissions intensity iron production credit.''.
(d) Effective Date.--The amendments made by this section shall
apply to iron produced after the date of the enactment of this Act.
SEC. 104. GREEN IRON AND STEEL FACILITY ENERGY INVESTMENT CREDITS.
(a) In General.--Subpart E of subchapter A of chapter 1 of the
Internal Revenue Code of 1986 is amended by adding at the end the
following new sections:
``SEC. 48F. ON-SITE ZERO-EMISSION ENERGY INVESTMENT CREDIT.
``(a) In General.--In the case of an eligible taxpayer, for
purposes of section 46, the on-site zero-emission energy investment
credit for any taxable year is an amount equal to 10 percent of the
qualified investment for such taxable year.
``(b) Qualified Investment.--
``(1) In general.--The qualified investment with respect to
any qualified facility for any taxable year is the sum of--
``(A) the basis of any property placed in service
by the taxpayer during the taxable year--
``(i) which is--
``(I) tangible personal property,
or
``(II) other tangible property (not
including a building or its structural
components), but only if such property
is used as an integral part of the
qualified facility,
``(ii) with respect to which depreciation
(or amortization in lieu of depreciation) is
allowable, and
``(iii)(I) the construction,
reconstruction, or erection of which is
completed by the taxpayer, or
``(II) which is acquired by the taxpayer if
the original use of such property commences
with the taxpayer, and
``(B) the basis of any qualified property placed in
service by the taxpayer during such taxable year which
is part of a facility described in subsection (c).
``(2) Certain qualified progress expenditures rules made
applicable.--Rules similar to the rules of subsections (c)(4)
and (d) of section 46 (as in effect on the day before the
enactment of the Revenue Reconciliation Act of 1990) shall
apply for purposes of this section.
``(3) Limitations.--
``(A) Credit limited to allocated amount.--The
amount which is treated as the qualified investment for
all taxable years with respect to any qualifying
advanced energy project shall not exceed the amount
designated by the Secretary as eligible for the credit
under this section.
``(B) Limitation on aggregate financial
assistance.--The amount which is treated as the
qualified investment for all taxable year with respect
to any qualified facility project shall not exceed the
amount that is equal to--
``(i) $500,000,000, minus
``(ii) the sum of--
``(I) any financial assistance
provided to such project pursuant to
the Steel Modernization Act of 2024,
``(II) any credits allowed for any
taxable year relating to such project
under this section, plus
``(III) any credits allowed for any
taxable year relating to such project
under section 48G.
``(c) Qualified Facility Project.--In this section, the term
`qualified facility project' means a project, any portion of the
qualified investment of which is certified by the Secretary under
subsection (e) as eligible for a credit under this section, which re-
equips, expands, or establishes a zero-carbon electricity or heat
generating or storage facility which is located on-site with an
eligible facility (as such term is defined in section 108 of the Steel
Modernization Act of 2024).
``(d) Eligible Taxpayer.--In this section, the term `eligible
taxpayer' means a taxpayer that--
``(1) is not under the influence, control, or ownership of
a foreign entity of concern (as defined in section 108 of the
Steel Modernization Act of 2024); and
``(2) has, with respect to any qualified facility project,
met the requirements described in section 101(d)(5) and (6) of
the Steel Modernization Act of 2024.
``(e) On-Site Zero-Emission Energy Project Program.--
``(1) Establishment.--
``(A) In general.--Not later than 180 days after
the date of enactment of this section, the Secretary
shall establish an on-site zero-emission energy project
program to consider and award certifications for
qualified investments eligible for credits under this
section to qualified facility project sponsors.
``(B) Limitation.--The total amount of credits that
may be allocated under the program shall not exceed
$500,000,000.
``(2) Certification.--
``(A) Application period.--Each applicant for
certification under this paragraph shall submit an
application containing such information as the
Secretary may require during the 2-year period
beginning on the date the Secretary establishes the
program under paragraph (1).
``(B) Time to meet criteria for certification.--
Each applicant for certification shall have 1 year from
the date of acceptance by the Secretary of the
application during which to provide to the Secretary
evidence that the requirements of the certification
have been met.
``(C) Period of issuance.--An applicant which
receives a certification shall have 3 years from the
date of issuance of the certification in order to place
the project in service and if such project is not
placed in service by that time period, then the
certification shall no longer be valid.
``(3) Selection criteria.--In determining which qualified
facility projects to certify under this section, the
Secretary--
``(A) shall take into consideration only those
projects where there is a reasonable expectation of
commercial viability, and
``(B) shall take into consideration which
projects--
``(i) will provide the greatest domestic
job creation (both direct and indirect) during
the credit period,
``(ii) will provide the greatest net impact
in avoiding or reducing air pollutants or
anthropogenic emissions of greenhouse gases,
``(iii) have the greatest potential for
technological innovation and commercial
deployment,
``(iv) have the lowest levelized cost of
generated or stored energy, or
``(v) of measured reduction in energy
consumption or greenhouse gas emission (based
on costs of the full supply chain),
``(C) have the shortest project time from
certification to completion, and
``(D) shall take into consideration only those
projects that have met the requirements described in
section 101(d)(5) and (6) of the Steel Modernization
Act of 2024.
``(4) Review and redistribution.--
``(A) Review.--Not later than 4 years after the
date of enactment of this section, the Secretary shall
review the credits allocated under this section as of
such date.
``(B) Redistribution.--The Secretary may reallocate
credits awarded under this section if the Secretary
determines that--
``(i) there is an insufficient quantity of
qualifying applications for certification
pending at the time of the review, or
``(ii) any certification made pursuant to
paragraph (2) has been revoked pursuant to
paragraph (2)(B) because the project subject to
the certification has been delayed as a result
of third party opposition or litigation to the
proposed project.
``(C) Reallocation.--If the Secretary determines
that credits under this section are available for
reallocation pursuant to the requirements set forth in
paragraph (2), the Secretary is authorized to conduct
an additional program for applications for
certification.
``(5) Disclosure of allocations.--The Secretary shall, upon
making a certification under this subsection, publicly disclose
the identity of the applicant and the amount of the credit with
respect to such applicant.
``(f) Inflation Adjustment.--In the case of any taxable year
beginning in a calendar year after 2024, there shall be substituted for
the dollar amount in subsection (b)(3)(B)(i) an amount equal to the
product of--
``(1) such dollar amount, multiplied by
``(2) the inflation adjustment factor for such calendar
year determined under section 43(b)(3)(B) for such calendar
year, determined by substituting `2023' for `1990'.
``(g) Sunset.--This section shall not apply to taxable years
beginning after December 31, 2045.
``SEC. 48G. IRON AND STEEL GREEN ENERGY AND GRID SYSTEM UPGRADE
INVESTMENT CREDIT.
``(a) In General.--In the case of an eligible taxpayer, for
purposes of section 46, the iron and steel green energy and grid system
upgrade investment credit for any taxable year is an amount equal to 10
percent of the qualified investment for such taxable year.
``(b) Definitions.--For purposes of this section--
``(1) Eligible taxpayer.--In this section, the term
`eligible taxpayer' means a taxpayer that--
``(A) is not under the influence, control, or
ownership of a foreign entity of concern (as defined in
section 108 of the Steel Modernization Act of 2024),
and
``(B) has, with respect to any qualified
interconnection property and qualified property, met
the requirements described in section 101(d)(5) and (6)
of the Steel Modernization Act of 2024.
``(2) Qualified investment.--The qualified investment for
any taxable year is the sum of--
``(A) the amount of any expenditures which are paid
or incurred by the taxpayer for qualified
interconnection property--
``(i) placed in service during the taxable
year of the taxpayer, and
``(ii) properly chargeable to capital
account of the taxpayer, and
``(B) the basis of any qualified property placed in
service by the taxpayer during such taxable year which
is part of a qualified facility.
``(3) Qualified interconnection property.--The term
`qualified interconnection property' means qualified
interconnection property (as such term is defined in section
48(a)(8)(B)) which is necessary to transmit energy to an
eligible facility.
``(4) Qualified property.--The term `qualified property'
has the meaning given such term in section 48E(b)(2).
``(5) Qualified facility.--The term `qualified facility'
means a qualified facility (as defined in section 48E(B)(3)
except that such paragraph shall be applied without regard to
subparagraph (C) thereof) which sells energy attribution
certificates to an eligible facility.
``(6) Eligible facility.--The term `eligible facility' has
the meaning given such term in section 108 of the Steel
Modernization Act of 2024.
``(c) Sunset.--This section shall not apply to taxable years
beginning after December 31, 2045.''.
(b) Conforming Amendments.--
(1) Section 46 of such Code is amended by striking ``and''
at the end of paragraph (6), by striking the period at the end
of paragraph (7) and inserting a comma, and by adding at the
end the following new paragraphs:
``(8) the on-site zero-emission energy investment credit,
and
``(9) the iron and steel green energy and grid system
upgrade investment credit.''.
(2) Section 49(a)(1)(C) of such Code is amended by striking
``and'' at the end of clause (vii), by striking the period at
the end of clause (viii) and inserting a comma, and by adding
at the end the following new clauses:
``(ix) the basis of any qualified property
which is part of a qualified facility under
section 48F, and
``(x) the basis of any qualified
interconnection property and any qualified
property which is part of a qualified facility
under section 48G.''.
(c) Clerical Amendment.--The table of sections for subpart E of
subchapter A of chapter 1 of such Code is amended by inserting after
the item relating to section 48E the following new items:
``Sec. 48F. On-site zero-emission energy investment credit.
``Sec. 48G. Iron and steel green energy and grid system upgrade
investment credit.''.
(d) Effective Date.--The amendments made by this section shall
apply to property placed in service after the date of the enactment of
this Act.
SEC. 105. STUDY AND REPORT ON DEMAND GENERATION.
The Secretary of Energy shall conduct a study, and publish a report
on the findings of such study on a publicly accessible website, on
opportunities for new Federal, State, and local policies, regulations,
and other measures to help stimulate demand for near-zero emissions
intensity iron and near-zero emissions intensity steel, including
demand related to shipbuilding, railroads, and offshore wind
electricity generation.
SEC. 106. REPORT ON STRATEGY TO BRING ZERO-GREENHOUSE GAS EMISSIONS
ELECTRICITY TO THE ELECTRIC GRID.
Not later than 1 year after the date of enactment of this Act, the
Secretary of Energy shall submit to Congress a report describing--
(1) a whole of Government strategy to--
(A) increase the supply of zero-greenhouse gas
emissions electricity on the electric grid;
(B) improve electricity transmission;
(C) upgrade regional energy distribution systems;
and
(D) ensure industrial entities can afford zero-
greenhouse gas emissions electricity;
(2) the amount of steel, aluminum, and other materials
produced in the United States that would be needed to implement
such strategy; and
(3) additional investments and policies recommended to be
able to finish and fabricate materials described in paragraph
(2) domestically.
SEC. 107. PROHIBITION.
None of the funds authorized to be appropriated or otherwise made
available pursuant to this Act may be made available--
(1) to construct, modify, retrofit, or otherwise be used
for a facility that is not located in the United States; or
(2) to any entity that is partly or wholly owned by--
(A) the Government of the People's Republic of
China; or
(B) a foreign entity of concern.
SEC. 108. DEFINITIONS.
In this title:
(1) Advanced industrial iron technology.--The term
``advanced industrial iron technology'' means a technology
related to iron production that is directly involved in an
industrial process, and designed to reduce, or results in a
reduction of, greenhouse gas emissions, as determined by the
Secretary of Energy.
(2) Advanced industrial steel technology.--The term
``advanced industrial steel technology'' means a technology
related to steel production that is directly involved in an
industrial process, and designed to reduce, or results in a
reduction of, greenhouse gas emissions, as determined by the
Secretary of Energy.
(3) Clean hydrogen.--
(A) In general.--The term ``clean hydrogen'' means
hydrogen that is produced through a process that
results in a lifecycle greenhouse gas emissions rate of
not greater than 0.45 kilograms of carbon dioxide
equivalent per kilogram of hydrogen.
(B) Lifecycle greenhouse gas emissions.--For
purposes of subparagraph (A), the term ``lifecycle
greenhouse gas emissions'' shall only include emissions
through the point of production, as determined under
the most recent Greenhouse gases, Regulated Emissions,
and Energy use in Transportation model (commonly
referred to as the ``GREET model'') developed by
Argonne National Laboratory, or a successor model (as
determined by the Secretary of Energy).
(4) Covered financial assistance.--The term ``covered
financial assistance'' includes a grant, rebate, direct loan,
cooperative agreement, low- to no-interest loans, and a loan
guarantee.
(5) Early-stage.--The term ``early-stage'' means, with
respect to a technology, that the technology has not yet been
proven viable at scale.
(6) Eligible entity.--The term ``eligible entity'' means
the owner or operator of an eligible facility.
(7) Eligible facility.--The term ``eligible facility''
means a domestic, non-Federal, nonpower industrial or
manufacturing facility engaged in production processes or
research and development for iron, steel, steel mill products,
or other industrial processes related to iron or steel-making,
as determined by the Secretary of Energy.
(8) Environmental justice community.--The term
``environmental justice community'' means a community with
significant representation of communities of color, low-income
communities, or Tribal and indigenous communities, that
experiences, or is at risk of experiencing, higher or more
adverse human health or environmental effects than other
communities.
(9) Existing or legacy iron or steel-making community.--The
term ``existing or legacy iron or steel-making community''
means--
(A) an area that is within a 25 mile radius of an
iron or steel production facility--
(i) that is producing iron or steel as of
the date of enactment of this Act; or
(ii) that has produced iron or steel
anytime since January 1, 1985; or
(B) any community within a 25 mile radius of a
location in which metallurgical coke, or metallurgical
coal destined to be metallurgical coke, has been
produced, mined, or processed at any time since January
1, 1985.
(10) Foreign entity of concern.--The term ``foreign entity
of concern'' has the meaning given such term in section
40207(a)(5) of the Infrastructure Investment and Jobs Act (42
U.S.C. 18741(a)(5)).
(11) Frontline community.--The term ``frontline community''
means--
(A) a low-income community;
(B) an environmental justice community; or
(C) a disadvantaged community (as defined by the
Justice40 Initiative established under section 223 of
Executive Order 14008, titled ``Tackling the Climate
Crisis at Home and Abroad'').
(12) Mine-to-metal basis.--The term ``mine-to-metal basis''
means the greenhouse gas accounting rule under criterion 10.4,
``Determination of site-level GHG emissions for the purpose of
reporting GHG emissions intensity when producing crude steel
for determining a site's greenhouse gas emissions'', under
Responsible Steel International Production Standard Version
2.1, effective from May 21, 2024.
(13) Near-zero emissions intensity iron.--The term ``near-
zero emissions intensity iron'' means iron that has an
emissions intensity of 0.35 tons of carbon dioxide equivalent
per ton of iron or less, with greenhouse gas emissions
determined on a mine-to-metal basis.
(14) Near-zero emissions intensity steel.--The term ``near-
zero emissions intensity steel'' means steel that has an
emissions intensity that is equal to or less than progress
level 4 emissions intensity that is determined, using a sliding
scale of emissions intensity based on scrape share of metallics
input, in accordance with criterion 10.6 of Responsible Steel
International Production Standard Version 2.1, effective from
May 21, 2024, and with greenhouse gas emissions determined on a
mine-to-metal basis.
TITLE II--TARIFF ON DIRTY IMPORTED STEEL
SEC. 201. CALCULATION OF EMISSIONS INTENSITY.
(a) Domestic Emissions Intensity Report.--Not later than June 30,
2026, and every 2 years thereafter, the United States International
Trade Commission shall transmit to the President and publish a report
with respect to the following:
(1) The average greenhouse gas emissions intensity of
domestic iron and steel production, expressed in tons of CO2-e
per ton of iron or steel, respectively.
(2) The average greenhouse gas emissions intensity of the
domestic manufacture of covered iron and steel product
categories and finished goods produced using covered iron and
steel product categories, expressed in tons of CO2-e per ton of
iron or steel, respectively.
(3) An estimate the 90th emissions intensity percentiles
for all domestically manufactured reported product categories.
(b) International Emissions Intensity Report.--
(1) In general.--No later than June 30, 2026, and every 2
years thereafter, the United States International Trade
Commission shall transmit to the President and publish a report
with respect to the emissions intensity of the manufacture of
covered iron and steel products in all foreign markets from
which the United States imported in excess of $200,000,000 of
iron and steel products, including finished goods, in any 1 of
the preceding 5 years. The emissions intensity with respect to
such covered products shall be determined based on--
(A) the emissions intensity of the general economy
of the country of origin of covered products as
compared to the emissions intensity of the United
States economy; or
(B) if the Commission determines that transparent,
verifiable, and reliable information is available with
respect to the iron and steel industry in the country
of origin of covered products and that the country of
origin is a transparent market economy--
(i) the emissions intensity of the iron and
steel industry in such country; or
(ii) if sufficiently disaggregated
information is available, the emissions
intensity of the manufacture of specific
covered product in such country.
(2) Aggregation rule.--For purposes of this subsection, the
average emissions intensity with respect to the production of a
covered iron or steel product shall be determined based upon
greenhouse gas emission and production data from all facilities
which produce such good which are under common control of the
manufacturer of such good, including any subsidiary, parent
company, or joint venture of such manufacturer within the
country of origin.
(3) Inputs.--With respect to any covered iron or steel
product which is imported into the United States and for which
other covered iron or steel products were used as inputs by the
manufacturer in the production of the imported product, any
greenhouse gas emissions associated with the production of the
other inputs shall be included in the determination of the
greenhouse gas emissions associated with production of the
imported product.
(4) Emissions intensity of the general economy.--For
purposes of this subsection, with respect to any country, the
emissions intensity of the general economy of such country
shall be an amount equal to the quotient of--
(A) the greenhouse gas emissions of such country
for the most recent year for which the President
determines there is reliable information, divided by
(B) the gross domestic product of such country for
such most recent year.
(5) Recommended emissions intensity tariff.--The Commission
shall also include in each report published pursuant to
paragraph (1) recommendations with respect to each applicable
foreign market of the tariff rate to impose with respect to the
importation of covered products from such market in order to
compensate for any greater emissions intensity of production in
such market.
(c) Petition.--In the case of any entity which imports a covered
iron or steel product for which the Commission determines the emissions
intensity under subsection (b)(1)(A) or subsection (b)(1)(B)(i), such
entity may submit to the President a petition to determine any tariff
pursuant to section 202 based on the average emissions intensity with
respect to the production of the specific covered product by the
manufacturer, including such information as the President may determine
necessary to calculate such average emissions intensity.
SEC. 202. IMPOSITION OF EMISSIONS INTENSITY TARIFF.
(a) In General.--
(1) Covered products.--In the case of any covered iron or
steel product imported into the United States or withdrawn from
warehouse for consumption on or after the date that is 90 days
after the publication of the first report required by section
201(a), the President shall impose an additional tariff--
(A) pursuant to the recommendation with respect to
the applicable foreign market in the most recent report
published pursuant to section 201(b)); or
(B) in such other amount as the President may
determine appropriate to carry out the purposes of this
title.
(2) Finished goods.--In the case of any finished good which
is imported into the United States on or after January 1, 2027,
the President shall impose an additional tariff in an amount
equal to the sum of the rates determined in accordance with
paragraph (1) with respect to each covered iron or steel
product that is a component part of such finished good.
(3) Covered products from nonmarket economies.--For any
covered iron or steel product imported from a country the
Commission determines, pursuant to section 201(b)(1)(B), is not
a transparent market economy, the tariff imposed shall be
double the amount calculated pursuant to paragraph (1) or
paragraph (2).
(b) Carbon Clubs Waiver.--The President may waive the tariff
otherwise imposed under this section with respect to covered iron and
steel products imported from a country if the President determines that
the country--
(1) has implemented policies which impose explicit costs on
the emission of greenhouse gases which are materially similar
to the charges imposed pursuant to the provisions of this
section;
(2) imposes such costs on similar product categories and
based on the emissions intensity of production in the country
of origin;
(3) achieves an emissions intensity for the domestic
manufacture of covered product categories that does not exceed
150 percent of the emissions intensity of manufacture in the
United States; and
(4) waives any tariffs that would be imposed pursuant to
such emissions policy on products from the United States.
(c) Melted and Poured Standard.--If a covered iron or steel product
imported into the United States is melted or poured in a third country,
the tariff imposed under this section shall be determined based on the
emissions intensity of the third country rather than the country from
which the product is imported, unless the President has approved a
petition submitted pursuant to section 201(c) with respect to the
importation of such product.
SEC. 203. DEFINITIONS.
In this title:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Environmental Protection Agency.
(2) CO2-e.--
(A) In general.--Subject to subparagraph (B), the
term ``CO2-e'' means, with respect to a greenhouse gas,
the quantity of such gas that has a global warming
potential equivalent to 1 metric ton of carbon dioxide,
as determined pursuant to table A-1 of subpart A of
part 98 of title 40, Code of Federal Regulations, as in
effect on the date of the enactment of this subchapter.
(B) Methane.--In the case of methane, the term
``CO2-e'' means the quantity of methane that has the
same global warming potential over a 20-year period as
1 metric ton of carbon dioxide, as determined by the
Administrator.
(3) Covered iron product; covered steel product.--
(A) In general.--The terms ``covered iron product''
and ``covered steel product'' are defined as follows:
(i) Articles classifiable under the
following headings of the Harmonized Tariff
Schedule of the United States:
(I) 7206.10 through 7216.50.
(II) 7216.99 through 7301.10.
(III) 7302.10.
(IV) 7302.40 through 7302.90.
(V) 7304.10 through 7306.90.
(ii) Subject to subparagraph (B), any other
iron or steel article the President determines
is imported from a country with a greater
emissions intensity than the United States, if
the President directs and the Commission
subsequently includes--
(I) an analysis of the domestic
production of such product in the most
recent study published in accordance
with section 201(a); and
(II) an analysis of the foreign
production of such product in the most
recent study published in accordance
with section 201(b).
(B) Exclusions.--A product otherwise meeting the
definition under subparagraph (A) shall not be treated
as a covered iron product or a covered steel product,
as applicable, under this title if--
(i) a like or similar article is not
produced in the United States;
(ii) the product is produced in (including
as a component of a finished good) and imported
from a relatively least developed country (as
described in section 124 of the Foreign
Assistance Act of 1961 (22 U.S.C. 2151v)) that
does not produce at least 3 percent of total
global exports, by value, of the product; or
(iii) the product is imported from a
country during any period in which a waiver is
in effect with respect to such country pursuant
to section 202(b).
(4) Finished good.--
(A) In general.--The term ``finished good'' means
any good which--
(i) for calendar years 2027 and 2028--
(I) contains greater than 500
pounds of any combination of any
covered iron or steel products, or
(II) was produced from inputs of
any combination of covered iron or
steel products, the value of which
comprise more than 90 percent of the
total value of the material inputs
involved in the production of such
good,
(ii) for calendar years 2029 and 2030--
(I) contains greater than 100
pounds of any combination of any
covered iron or steel products, or
(II) was produced from inputs of
any combination of covered iron or
steel products, the value of which
comprise more than 75 percent of the
total value of the material inputs
involved in the production of such
good, and
(iii) for any calendar year after calendar
year 2030--
(I) contains greater than such
amount as is determined by the
Secretary (as determined in
coordination with the relevant parties,
and which shall not be greater than 100
pounds) of any combination of any
covered iron or steel products, or
(II) was produced from inputs of
any combination of covered iron or
steel products, the value of which
comprise more than such percentage as
is determined by the Secretary (as
determined in coordination with the
relevant parties, and which shall not
be greater than 75 percent) of the
total value of the material inputs
involved in the production of such
good.
(B) Exception.--The term ``finished good'' shall
not include any waste or scrap product that is imported
or exported.
(5) Greenhouse gas.--The term ``greenhouse gas'' has the
meaning given such term under section 211(o)(1)(G) of the Clean
Air Act, as in effect on the date of the enactment of this
subchapter.
(6) Greenhouse gas emissions.--The term ``greenhouse gas
emissions'' means the amount of greenhouse gases, expressed in
metric tons of CO2-e, which were emitted to the atmosphere.
(7) Relevant parties.--The term ``relevant parties''
means--
(A) the Administrator,
(B) the Secretary of Energy,
(C) the Secretary of Commerce,
(D) the United States Trade Representative, and
(E) the Chair and Vice Chair of the United States
International Trade Commission.
TITLE III--EXPENDITURE OF REVENUES
SEC. 301. ADMINISTRATIVE EXPENSES.
For fiscal year 2025 and each subsequent fiscal year, there is
appropriated, out of any funds in the Treasury not otherwise
appropriated, to the Secretary of Energy an amount equal to 75 percent
of the total amount collected in the preceding fiscal year pursuant to
the tariff imposed under section 202, to be made available to carry out
this Act.
SEC. 302. ECONOMIC SUPPORT FUND.
For fiscal year 2025 and each subsequent fiscal year, in addition
to amounts otherwise available, there is appropriated, out of any funds
in the Treasury not otherwise appropriated, an amount equal to 25
percent of the total amount collected in the preceding fiscal year
pursuant to the tariff imposed under section 202, to be made available
to carry out programs, projects, and activities authorized pursuant to
section 531 of the Foreign Assistance Act of 1961 (22 U.S.C. 2346;
referred to as the ``economic support fund'') to provide bilateral and
multilateral assistance to foreign countries to support decarbonization
programs and other climate and clean energy programs.
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