This Act may be cited as the “Climate Leadership and Environmental Action for our Nation’s Future Act” or the “CLEAN Future Act”.

The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.

It is hereby declared that it is—

(1) the national interim goal for the United States to achieve a minimum of a 50 percent reduction in emissions of greenhouse gases from 2005 levels by not later than 2030; and

(2) the national goal for the United States to achieve a 100 percent clean economy by not later than 2050.

(a) Plan development.—The head of each Federal agency shall, in accordance with this section, develop a plan for actions to be taken by the Federal agency, consistent with the Federal agency’s mission and exclusively through authorities vested in the Federal agency by provisions of law other than this Act, to achieve, in combination with the other Federal agencies, the national interim goal and the national goal declared by section 101. Each Federal agency’s plan shall include actions that will—

(1) make significant and rapid progress toward meeting such national interim goal and national goal; and

(2) constitute a substantial change from business-as-usual policies and practices of such Federal agency.

(b) Actions To meet goals.—

(1) IN GENERAL.—Actions selected by the head of a Federal agency to include in a plan developed under subsection (a) may include issuing regulations, providing incentives, carrying out research and development programs, reducing the greenhouse gas emissions of such Federal agency itself, increasing the resilience of such Federal agency’s facilities and operations to climate change impacts and risks, and any other action the head of the Federal agency determines appropriate to achieve the national interim goal and the national goal declared by section 101.

(2) SELECTION.—In selecting actions to include in a plan developed under subsection (a), the head of each Federal agency shall select actions designed to—

(A) improve public health, resilience, and environmental outcomes, especially for rural and low-income households, communities of color, Tribal and indigenous communities, deindustrialized communities, and communities that are disproportionately vulnerable to the impacts of climate change and other pollution;

(B) provide benefits for consumers, small businesses, farmers and ranchers, and rural communities;

(C) prioritize infrastructure investment that reduces emissions of greenhouse gases and other pollutants, creates quality jobs, and makes communities more resilient to the effects of climate change;

(D) enhance quality job creation and raise labor standards across the United States economy, including removing policy barriers to labor union organizing, protecting labor agreements, applying prevailing wage, safety and health protections, domestic content, and other provisions;

(E) lead in clean and emerging technology production and manufacturing across the supply chain and align policies to ensure United States companies retain their competitive edge in a clean economy;

(F) ensure fairness and equity for workers and communities affected by the transition to a 100 percent clean economy; and

(G) prepare communities for climate change impacts and risks.

(c) Proposed plan.—

(1) PUBLIC COMMENT.—Not later than 6 months after the date of enactment of this Act, the head of each Federal agency shall make the proposed plan of the Federal agency developed under subsection (a) available for public comment.

(2) INTERAGENCY REVIEW.—Not later than 9 months after the date of enactment of this Act, the head of a Federal agency, after considering public comments and revising a proposed plan developed under subsection (a), as appropriate, shall submit the proposed plan to the Administrator for review and comment. The Administrator, in consultation with the Secretary where appropriate, shall—

(A) evaluate the sufficiency of each such proposed plan individually, and in combination with the proposed plans of other Federal agencies, to achieve the national interim goal and the national goal declared by section 101; and

(B) provide, not later than 90 days after receiving the proposed plan of a Federal agency, written recommendations to such Federal agency to ensure that the plan is individually, and in combination with the proposed plans of other Federal agencies, sufficient to achieve the national interim goal and the national goal declared by section 101 and advance the objectives listed in subsection (b)(2).

(d) Submission.—Not later than 15 months after the date of enactment of this Act, the head of each Federal agency shall make public and submit to Congress—

(1) a plan developed under subsection (a) that incorporates revisions to the proposed plan, as appropriate, to address the recommendations provided by the Administrator under subsection (c);

(2) the recommendations provided by the Administrator under subsection (c); and

(3) recommendations of the Federal agency on additional authority for the Federal agency, if any, that would be helpful for such Federal agency, in combination with the other Federal agencies, to achieve the national interim goal and the national goal declared by section 101.

(e) Technical assistance.—The Administrator, in consultation with the Secretary as appropriate, shall provide technical assistance upon request by any Federal agency in developing or revising a plan under this section.

(f) Implementation.—Beginning not later than 15 months after the date of enactment of this Act, the head of each Federal agency shall implement the plan of the Federal agency developed under subsection (a) and submitted to Congress under subsection (d).

(g) Revisions.—Not less frequently than every 24 months after the head of a Federal agency submits to Congress the Federal agency’s plan under subsection (d), the head of such Federal agency, in consultation with the Administrator, shall review and revise the plan to ensure it is sufficient to achieve, in combination with the plans of the other Federal agencies, the national interim goal and the national goal declared by section 101. The head of each Federal agency shall include the conclusion of each such review and any revised plan resulting from such review in the next annual report required under subsection (h).

(h) Annual report.—Not later than March 31 of the calendar year after the calendar year in which each Federal agency is required to submit to Congress a plan under subsection (d), and not later than March 31 of each year thereafter, the head of each Federal agency shall issue a public report on the plan of such Federal agency (including any revisions to such plan), actions taken by the Federal agency pursuant to such plan, and the effects of such actions, during the preceding calendar year.

(a) EPA review and reports.—The Administrator shall—

(1) monitor the overall progress of the United States in reducing greenhouse gas emissions and toward achieving the national interim goal and the national goal declared by section 101; and

(2) not later than September 30 of the calendar year after the calendar year in which each Federal agency is required to submit to Congress a plan under section 102(d), and not later than September 30 of each year thereafter, submit to Congress and publish a report on such progress that includes—

(A) a review of how such greenhouse gas emissions reductions relate to the international commitments of the United States; and

(B) recommendations developed under subsection (b).

(b) Recommendations.—The Administrator shall include—

(1) in each annual report submitted under subsection (a), as appropriate, after consulting with the Secretary and considering any recommendations of the Advisory Committee, recommendations regarding the rate of progress of the United States toward achieving the national interim goal and the national goal declared by section 101; and

(2) in an appendix to each such annual report, the recommendations of the Advisory Committee.

(a) Establishment.—Not later than 3 months after the date of enactment of this Act, the Administrator shall—

(1) establish an advisory committee, to be known as the Clean Economy Federal Advisory Committee, to make recommendations described in subsection (c); and

(2) appoint the following members to the Advisory Committee that reflect diversity in gender, age, race, and geography:

(A) 2 members who are State officials from different States, including at least 1 official from a State that has adopted greenhouse gas reduction targets.

(B) 2 members who are local government officials from different States than the States represented by the members appointed pursuant to subparagraph (A), including—

(i) 1 official from a city or county that has adopted greenhouse gas reduction targets; and

(ii) 1 official from a city or county that is impacted by the transition away from fossil energy.

(C) 1 member who represents an environmental nonprofit organization with expertise in mitigation of greenhouse gas emissions.

(D) 2 members who are members of environmental justice organizations representing environmental justice communities.

(E) 2 members who are members of climate justice organizations representing communities on the front lines of climate change.

(F) 2 members who are representatives of Tribal communities, including—

(i) 1 member from a community impacted by pollution from the fossil fuel industry; and

(ii) 1 member from a community impacted by the transition away from fossil energy.

(G) 2 members who are members of the National Academy of Sciences and have expertise in climate science.

(H) 4 members who are employed by organized labor unions, including—

(i) 1 member from a utility sector union;

(ii) 1 member from a transportation sector union;

(iii) 1 member from a manufacturing union; and

(iv) 1 member from a building trades union.

(I) 2 members who are employed by the power sector, including at least 1 member from a business in the clean energy industry.

(J) 2 members of the agriculture industry, including 1 member who is a farmer or rancher and 1 member who represents an organization that represents family farms.

(K) 2 members from the transportation sector, including at least 1 member who is a representative of a public transit industry.

(L) 2 members from the manufacturing sector, including at least 1 member who is from a business that has committed to net-zero greenhouse gas emissions.

(M) 2 members from the commercial and residential building sector, including at least 1 member who is from a business that has committed to improving energy efficiency in commercial or residential buildings.

(N) 1 member with expertise in public health.

(O) 1 member who is a young person who is associated with a climate and environmental organization.

(b) Organization; termination.—

(1) SUBCOMMITTEES.—The Advisory Committee may, as the Advisory Committee determines appropriate, establish subcommittees to provide advice to the full Advisory Committee on matters within the respective subcommittee’s area of expertise. At a minimum, the Advisory Committee shall consider establishing subcommittees on—

(A) environmental justice;

(B) climate justice;

(C) fairness and equity for workers; and

(D) the transition of communities dependent upon fossil fuels.

(2) MEETINGS.—The Advisory Committee shall meet not less frequently than 3 times in the first year after it is established, and at least annually thereafter.

(3) TERMS.—A member of the Advisory Committee shall be appointed for a term of 2 years and the Administrator may reappoint members for no more than 3 consecutive terms.

(4) VACANCIES.—Any vacancy in the Advisory Committee shall be filled by the Administrator in the same manner as the original appointment and not later than 180 days after the occurrence of the vacancy.

(5) CHAIR.—The Advisory Committee shall appoint a chair from among the members of the Advisory Committee by a majority of those voting, if a quorum is present.

(6) QUORUM.—A two-thirds majority of members of the full Advisory Committee shall constitute a quorum.

(7) APPLICABILITY OF FACA.—The Advisory Committee shall be subject to the Federal Advisory Committee Act (5 U.S.C. App.).

(8) TERMINATION.—The Advisory Committee shall terminate on December 31, 2050.

(c) Recommendations.—

(1) INTERIM GOALS.—Not later than 15 months after the date of enactment of this Act, and upon the request of the Administrator thereafter, the Advisory Committee shall submit to the Administrator recommendations on one or more interim greenhouse gas emissions reduction goals for the United States to achieve before achieving the national goal declared by section 101(2).

(2) ANNUAL REVIEW.—Not later than June 30 of the calendar year after the calendar year in which each Federal agency is required to submit to Congress a plan under section 102(d), and not later than June 30 of each year thereafter, and upon the request of the Administrator, the Advisory Committee may provide recommendations for the Administrator to consider in developing recommendations to include in the annual report required under section 103.

(3) OTHER MATTERS.—Upon the request of the Administrator, or upon the Advisory Committee’s initiative, the Advisory Committee may provide recommendations for the Administrator to consider regarding any of the matters addressed by this Act.

(a) In general.—Not later than 18 months after the date of enactment of this Act, the Administrator shall, after consulting with the Secretary and obtaining the recommendations of the Advisory Committee, recommend to Congress one or more interim greenhouse gas emissions reduction goals for the United States to achieve before achieving the national goal declared by section 101(2). In selecting one or more such interim goals to recommend to Congress, the Administrator shall consider—

(1) the best available science on the needed pace of reducing greenhouse gas emissions to limit global warming to 1.5° Celsius;

(2) the international commitments by the United States to address climate change, so as to ensure that any interim goal is, at a minimum, consistent with such commitments; and

(3) the degree of progress considered necessary by a given date to maximize the likelihood that there is an economically and technically feasible path forward from such date to achieve the national goal declared by section 101(2).

(b) Updates.—Upon request of Congress, or any new international commitment by the United States to address climate change, the Administrator may recommend to Congress revised or additional interim goals.

For purposes of this subtitle:

(1) ADVISORY COMMITTEE.—The term “Advisory Committee” means the Clean Economy Federal Advisory Committee established pursuant to section 104.

(2) ADMINISTRATOR.—The term “Administrator” means the Administrator of the Environmental Protection Agency.

(3) FEDERAL AGENCY.—The term “Federal agency” has the meaning given the term “agency” in section 551 of title 5, United States Code.

(4) GREENHOUSE GAS.—The term “greenhouse gas” means the heat-trapping gases for which the anthropogenic emissions are estimated and reported in the most recently issued “Inventory of U.S. Greenhouse Gas Emissions and Sinks” prepared annually by the Environmental Protection Agency in accordance with the commitments of the United States under the United Nations Framework Convention on Climate Change.

(5) 100 PERCENT CLEAN ECONOMY.—The term “100 percent clean economy” means, with respect to the United States, economywide, net-zero greenhouse gas emissions, or negative greenhouse gas emissions, after annual accounting for sources and sinks of anthropogenic greenhouse gas emissions consistent with the coverage of emissions reported by the United States under the United Nations Framework Convention on Climate Change.

(6) SECRETARY.—The term “Secretary” means the Secretary of Energy.

(a) In general.—The Administrator of the Environmental Protection Agency shall seek to enter into an agreement with the National Academy of Sciences under which the Academy agrees to—

(1) conduct a study on matters concerning the national goal of achieving net-zero greenhouse gas emissions by 2050;

(2) not later than 3 years after the date of entry into such agreement, complete such study and submit to the Congress and the Administrator a report on the results of such study that includes—

(A) the metrics by which the achievement of such goal should be determined; and

(B) a method to determine progress toward and success in reaching such goal; and

(3) not later than 5 years after the submission of such report, submit a followup report assessing—

(A) the effectiveness of the metrics and method recommended in the report pursuant to subparagraphs (A) and (B) of paragraph (2) in evaluating progress toward reaching such goal;

(B) the implementation by the Environmental Protection Agency of such metrics and method, and of other recommendations in such report; and

(C) the progress made towards the national goal declared by section 101(2) and all interim goals recommended to Congress by the Administrator pursuant to section 105.

(b) Timing of agreement.—The Administrator shall seek to enter into the agreement described in subsection (a) not later than 180 days after the date of enactment of this Act.

(c) Requirements.—The study and report pursuant to paragraphs (1) and (2) of subsection (a) shall—

(1) provide comprehensive metrics to measure lifecycle greenhouse gas emissions by sector and, where appropriate, major subsector, including—

(A) industry;

(B) electricity and heat production;

(C) transportation;

(D) buildings;

(E) agriculture, forestry, and other land use; and

(F) other sectors or major subsectors selected by the Academy;

(2) provide methodologies, inputs, measurements, techniques, and equations to calculate lifecycle greenhouse gas emissions for each sector for which metrics are provided pursuant to paragraph (1) and, as the Academy deems appropriate, each major subsector for which such metrics are provided;

(3) identify limitations when evaluating and selecting metrics to calculate lifecycle greenhouse gas emissions, and any challenges relevant to calculating lifecycle greenhouse gas emissions;

(4) review and synthesize relevant existing assessments of lifecycle greenhouse gas emissions for each sector for which metrics are provided pursuant to paragraph (1) and, as the Academy deems appropriate, each major subsector for which such metrics are provided, including assessments produced by—

(A) the Intergovernmental Panel on Climate Change;

(B) nongovernmental entities, nonprofit organizations, and academic institutions;

(C) private actors;

(D) domestic and international government actors; and

(E) other international organizations;

(5) assess existing metrics and methodologies for accounting for negative emissions and sinks; and

(6) provide a methodology to use lifecycle greenhouse gas emissions metrics to determine sector- and major subsector-specific progress toward the national goal, including balancing emission sources, negative emissions, and sinks.

(d) Recommendations.—The study and report pursuant to paragraphs (1) and (2) of subsection (a) shall identify actions that could be taken to—

(1) improve scientific understanding key to assessing progress toward and success in achieving the national goal of net-zero greenhouse gas emissions by 2050;

(2) improve the measurement of lifecycle greenhouse gas emissions; and

(3) improve the accounting of negative emissions and sinks.

(e) Definitions.—In this section:

(1) The term “Academy” means the National Academy of Sciences.

(2) The term “Administrator” means the Administrator of the Environmental Protection Agency.

(3) The term “lifecycle greenhouse gas emissions” means the aggregate quantity of greenhouse gas emissions (including direct emissions and significant indirect emissions such as significant emissions from land-use changes), as determined by the Academy over the full lifecycle of the respective greenhouse gases, across all stages of a given sector or major subsector’s supply chain, where the mass values for all greenhouse gases are adjusted to account for their relative global warming potential and residence time.

(4) The term “negative emissions” means greenhouse gases permanently removed from the atmosphere, other than biogenic removals through land-use and forestry practices.

(5) The term “sinks” means a reservoir of greenhouse gases removed from the atmosphere through land-use and forestry practices, consistent with the United Nations Framework Convention on Climate Change (UNFCCC) national inventory accounting guidelines.

In this subtitle:

(1) ADMINISTRATOR.—The term “Administrator” means the Administrator of the Environmental Protection Agency.

(2) AFFILIATE.—The term “affiliate” has the meaning given such term in section 1262 of the Energy Policy Act of 2005 (42 U.S.C. 16451).

(3) ASSOCIATE COMPANY.—The term “associate company” has the meaning given such term in section 1262 of the Energy Policy Act of 2005 (42 U.S.C. 16451).

(4) BEHIND-THE-METER GENERATION SYSTEM.—The term “behind-the-meter generation system” means a system of generation of electric energy that operates on the electric consumer side of the applicable utility meter.

(5) BENEFICIAL ELECTRIFICATION-RELATED REDUCTION.—The term “beneficial electrification-related reduction” means the net reduction of the aggregate greenhouse gas emissions of a retail electricity supplier and an electric consumer as the result of the replacement of a power source of the electric consumer that is not electric energy with electric energy provided by the retail electricity supplier, including for the purpose of transportation, space heating, water heating, or industrial processes.

(6) CARBON DIOXIDE EQUIVALENT.—The term “carbon dioxide equivalent” means the number of metric tons of carbon dioxide emissions with the same global warming potential over a 20-year period as 1 metric ton of another greenhouse gas, including the effects of climate-carbon feedbacks for both carbon dioxide and the other greenhouse gas, as determined in accordance with the Fifth Assessment Report of the Intergovernmental Panel on Climate Change. For methane, the global warming potential shall include the effect of carbon dioxide from methane oxidation in the atmosphere.

(7) CARBON INTENSITY.—The term “carbon intensity” means the carbon dioxide equivalent emissions associated with the generation of 1 megawatt-hour of electric energy, as determined by the Secretary under section 204.

(8) CARBON INTENSITY FACTOR.—The term “carbon intensity factor” means—

(A) for each calendar year through 2030, 0.82;

(B) for calendar year 2031, 0.736;

(C) for calendar year 2032, 0.652;

(D) for calendar year 2033, 0.568;

(E) for calendar year 2034, 0.484; or

(F) for calendar year 2035 and each calendar year thereafter, 0.4.

(9) ELECTRIC CONSUMER.—The term “electric consumer” has the meaning given such term in section 3 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2602).

(10) FEDERAL POWER MARKETING ADMINISTRATION.—The term “Federal Power Marketing Administration” means the Bonneville Power Administration, the Southeastern Power Administration, the Southwestern Power Administration, or the Western Area Power Administration.

(11) GENERATING UNIT.—The term “generating unit” means a unit or system of units that—

(A) generates electric energy that is consumed in the United States;

(B) generates not fewer than 20 megawatt-hours of electric energy per calendar year; and

(C) (i) delivers electric energy to the electric grid; or

(ii) in the case of a behind-the-meter generation system—

(I) delivers electric energy to the electric grid; or

(II) generates electric energy that is consumed onsite for a useful purpose other than for generating electric energy.

(12) GENERATOR.—The term “generator” means the owner or operator of a generating unit.

(13) GREENHOUSE GAS.—The term “greenhouse gas” includes each of the following:

(A) Carbon dioxide.

(B) Methane.

(C) Nitrous oxide.

(D) Sulfur hexafluoride.

(E) Any hydrofluorocarbon.

(F) Any perfluorocarbon.

(G) Nitrogen trifluoride.

(H) Any fully fluorinated linear, branched, or cyclic—

(i) alkane;

(ii) ether;

(iii) tertiary amine; or

(iv) aminoether.

(I) Any perfluoropolyether.

(J) Any hydrofluoropolyether.

(K) Any other fluorocarbon, except for a fluorocarbon with a vapor pressure of less than 1 mm of Hg absolute at 25 degrees Celsius.

(14) QUALIFIED COMBINED HEAT AND POWER SYSTEM.—The term “qualified combined heat and power system” means a system that—

(A) uses the same energy source for the simultaneous or sequential generation of electric energy and thermal energy;

(B) produces at least—

(i) 20 percent of the useful energy of the system in the form of electric energy; and

(ii) 20 percent of the useful energy of the system in the form of useful thermal energy;

(C) to the extent that the system uses biomass, uses only qualified renewable biomass; and

(D) operates with an energy efficiency percentage, as determined in accordance with section 48(c)(3)(C)(i) of the Internal Revenue Code of 1986, of greater than 60 percent on a year-round basis.

(15) QUALIFIED ELECTRICITY GENERATION.—

(A) IN GENERAL.—The term “qualified electricity generation” means the number of megawatt-hours of electric energy that a generator generates using a generating unit and—

(i) sells directly or indirectly for use by electric consumers for purposes other than resale; or

(ii) that is consumed onsite for a useful purpose other than for generating electric energy.

(B) AFFILIATE SALES.—For purposes of calculating the quantity of electric energy sold by a retail electricity supplier under this paragraph, the quantity of electric energy sold—

(i) by an affiliate of the retail electricity supplier, or an associate company of the retail electricity supplier, to an electric consumer (other than to a lessee or tenant of the affiliate or associate company) shall be treated as sold by the retail electricity supplier; and

(ii) by such retail electricity supplier to an affiliate, lessee, or tenant of the retail electricity supplier shall not be considered to be a sale to an electric consumer.

(16) QUALIFIED LOW-CARBON FUEL.—

(A) IN GENERAL.—The term “qualified low-carbon fuel” means a fuel that—

(i) is produced through any process that significantly limits or avoids greenhouse gas emissions; and

(ii) does not release greenhouse gas emissions during combustion.

(B) INCLUSION.—The term “qualified low-carbon fuel” includes, subject to subparagraph (A)—

(i) ammonia; and

(ii) hydrogen.

(17) QUALIFIED RENEWABLE BIOMASS.—

(A) IN GENERAL.—The term “qualified renewable biomass” means—

(i) any crop byproduct, or crop residue, harvested from actively managed, or fallow, agricultural, nonforested land that was cleared before January 1, 2020, if the harvesting of the byproduct or residue does not lead to a net decline in soil organic matter for the applicable land;

(ii) any cellulose, hemicellulose, or lignin that is derived from a woody or nonwoody plant that is planted for closed-loop biomass (as defined in section 45(c)(2) of the Internal Revenue Code of 1986) on land that was, as of January 1, 2021—

(I) actively managed cropland or fallow and nonforested cropland, as defined by the Department of Agriculture;

(II) a brownfield site (as defined in section 101(39) of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9601(39))); or

(III) an abandoned mine site;

(iii) nonhazardous algal or other micro-crop matter; and

(iv) waste—

(I) that is burned in a qualified combined heat and power system; and

(II) that is—

(aa) methane captured from a landfill, an animal production facility, or a sewage treatment operation;

(bb) nonhazardous landscape or right-of-way trimmings;

(cc) vegetative matter removed from an area located not more than 200 yards from a building, residence, or campground for the purpose of protecting structures from wildfire;

(dd) any byproduct of a wood mill or paper mill operation, including lignin in spent pulping liquors, that is demonstrated to otherwise be burned for energy onsite;

(ee) plant material removed for the purposes of invasive or noxious plant species control; or

(ff) downed wood from extreme weather events.

(B) LIMIT OF INCLUSION OF INVASIVE SPECIES.—Except as provided in subparagraph (A)(iv)(II)(ee), the term “qualified renewable biomass” does not include any matter that the Secretary of Agriculture, in consultation with other Federal or State departments and agencies the Secretary determines appropriate, determines is derived from—

(i) a plant that is invasive or noxious; or

(ii) a species or varieties of plants that are potentially invasive.

(C) OVERSIGHT.—The Administrator shall oversee that the aforementioned standards for qualified renewable biomass in subparagraphs (A) and (B) are adhered to, in consultation with the Secretary of Agriculture and the Secretary of the Interior, as appropriate.

(D) EMISSIONS.—Processing or combustion of qualified renewable biomass should not result in emissions of—

(i) an air pollutant for which air quality criteria has been issued under section 108 of the Clean Air Act (42 U.S.C. 7408); or

(ii) a hazardous air pollutant listed pursuant to section 112(b) of the Clean Air Act (42 U.S.C. 7412).

(18) QUALIFIED WASTE-TO-ENERGY.—The term “qualified waste-to-energy” means electric energy generated—

(A) from the combustion of—

(i) post-recycled municipal solid waste;

(ii) gas produced from the gasification or pyrolization of post-recycled municipal solid waste;

(iii) biogas;

(iv) landfill methane;

(v) animal waste or animal byproducts;

(vi) food waste;

(vii) if diverted from or separated from other waste out of a municipal waste stream—

(I) paper products that are not commonly recyclable;

(II) vegetation;

(III) tree trimmings;

(IV) solid-wood yard waste, pallets, or crates; or

(V) manufacturing and construction debris; or

(viii) any byproduct of a wood or paper mill operation, including lignin in spent pulping liquors; and

(B) at a facility that the Administrator has certified, within the past 18 months, is—

(i) in compliance with all applicable Federal and State environmental permits; and

(ii) in the case of a facility that commences operation before the date of enactment of this subtitle, in compliance with emission standards under sections 112 and, as applicable, 129 of the Clean Air Act (42 U.S.C. 7412, 7429) that apply as of the date of enactment of this subtitle to new facilities within the applicable source category.

(19) RETAIL ELECTRICITY SUPPLIER.—The term “retail electricity supplier”, as determined for each calendar year, means an entity in the United States that sold not fewer than 20 megawatt-hours of electric energy to electric consumers for purposes other than resale during the preceding calendar year.

(20) SALE.—The term “sale”, when used with respect to electric energy, has the meaning given such term in section 3(13) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2602(13)).

(21) STATE.—Except as otherwise provided in this title, the term “State” means a State of the United States and any district, commonwealth, territory, or possession of the United States.

(22) ZERO-EMISSION ELECTRICITY.—The term “zero-emission electricity” means the fraction of the electric energy generated by a given generating unit whose generation is not associated with the release of greenhouse gases to the atmosphere. The number of megawatt-hours of zero-emission electricity of a given generating unit is equal to the product obtained by multiplying—

(A) the qualified electricity generation of the generating unit; by

(B) the extent to which the operation of the generating unit results in fewer greenhouse gas emissions than an efficient coal-burning power plant, which is the number that equals—

(i) 1.0; less

(ii) the quotient obtained by dividing—

(I) the carbon intensity of the generating unit; by

(II) the carbon intensity factor.

(23) ZERO-EMISSION ELECTRICITY CREDIT.—The term “zero-emission electricity credit” means a credit issued pursuant to section 204.

(a) Zero-Emission electricity requirement.—

(1) CREDIT SUBMISSION REQUIREMENT.—Except as otherwise provided in this section, effective beginning with calendar year 2023, for each calendar year, not later than June 1 of the following calendar year, each retail electricity supplier shall submit to the Administrator a quantity of zero-emission electricity credits that is equal to—

(A) for each of calendar years 2023 and 2024, the quantity of zero-emission electricity credits determined under paragraph (3) for the retail electricity supplier for such calendar year; and

(B) for calendar year 2025 and each calendar year thereafter, the average of the quantity of zero-emission electricity credits determined under paragraph (3) for the retail electricity supplier for such calendar year and the two prior calendar years.

(2) VOLUNTARY ASSIGNMENT OF COMPLIANCE OBLIGATION BY PUBLIC POWER UTILITIES AND ELECTRIC COOPERATIVES.—Any retail electricity supplier that is an electric cooperative, a State, or any political subdivision of a State, may elect to enter into an agreement with another political subdivision of a State, an electric cooperative that has an obligation to serve such retail electricity supplier, or a generator to assign any reporting or compliance obligation under this title to such other political subdivision of a State, electric cooperative, or generator. An assignment made under this paragraph shall be established through a binding agreement executed among the relevant parties.

(3) QUANTITY OF ZERO-EMISSION ELECTRICITY CREDITS.—

(A) IN GENERAL.—For each calendar year, the Administrator shall determine a quantity of zero-emission electricity credits for a retail electricity supplier that is equal to the product obtained by multiplying—

(i) the total quantity of electric energy, in megawatt-hours, consumed by electric consumers of the retail electricity supplier during the calendar year, that is provided by the retail electricity supplier or by a behind-the-meter generation system, as reported under subsection (b); by

(ii) the minimum percentage of zero-emission electricity for the calendar year.

(B) SYSTEM SUPPORT RESOURCE.—For any calendar year in which a generating unit that is owned by a retail electricity supplier has been designated a System Support Resource by the Federal Energy Regulatory Commission and is thereby required, by an Independent System Operator or Regional Transmission Organization, or under a State-regulated resource planning process, to remain in operation because retirement of the generating unit would harm the reliability of the electric energy transmission system, in calculating the total quantity of electric energy consumed by electric consumers of the retail electricity supplier under subparagraph (A)(i), the Administrator shall deduct the quantity of megawatt-hours of electricity generated by such generating unit during such calendar year.

(C) EXCEPTION.—

(i) IN GENERAL.—Notwithstanding anything to the contrary in this section, beginning with calendar year 2031, the Administrator shall defer for one calendar year increasing the required minimum percentage of zero-emission electricity as set forth in clauses (iii) through (vii) of paragraph (5)(C) for a retail electricity supplier if the retail electricity supplier submits an alternative compliance payment in lieu of more than 10 percent of the quantity of zero-emission electricity credits due pursuant to this section in both calendar year 2029 and calendar year 2030, or any two consecutive calendar years thereafter.

(ii) EXTENDED SCHEDULE.—If a retail electricity supplier receives a deferral pursuant to clause (i), the minimum percentage of zero-emission electricity as set forth in clauses (iii) through (vii) of paragraph (5)(C) shall be each be extended by one calendar year.

(iii) SAVINGS CLAUSE.—Notwithstanding clauses (i) and (ii), the required minimum percentage of zero-emission electricity set forth in paragraph (5)(C)(vii) shall not be deferred beyond calendar year 2040.

(iv) ELECTRIC UTILITY BILL PAYMENT ASSISTANCE.—If the Administrator issues a deferral pursuant to clause (i), the Administrator shall, notwithstanding anything to the contrary in section 205, award under section 205(b) an amount of money equal to 25 percent of the total amount paid by a retail electricity supplier as alternative compliance payments in the two years that triggered the deferral. Such sums shall be paid awarded for the sole purpose of assisting consumers of the retail electricity supplier with their electric utility bill pursuant to terms established by the Administrator.

(4) DEFINITIONS.—In this subsection:

(A) 2020S ANNUAL PERCENTAGE INCREASE.—The term “2020s annual percentage increase” means, with respect to a retail electricity supplier, the product obtained by multiplying—

(i) the difference between 80 percent and the baseline zero-emission electricity percentage; by—

(ii) ¹⁄7 .

(B) BASELINE ZERO-EMISSION ELECTRICITY PERCENTAGE.—

(i) IN GENERAL.—The term “baseline zero-emission electricity percentage” means, with respect to a retail electricity supplier, the average percentage of the electric energy consumed by all electric consumers of the retail electricity supplier that is zero-emission electricity during calendar years 2017, 2018, and 2019.

(ii) ELECTION.—For any retail electricity supplier served by an Independent System Operator or a Regional Transmission Organization, or participating in a joint unit commitment and centralized economic dispatch system regulated by the Federal Energy Regulatory Commission, the retail electricity supplier may elect to set its baseline zero-emission electricity percentage under clause (i) on the basis of the zero-emission electricity and electric energy consumed by either—

(I) all electric consumers of the retail electricity supplier; or

(II) all electric consumers served by the Independent System Operator, Regional Transmission Organization, or the applicable joint unit commitment and centralized economic dispatch system that serves the retail electricity supplier.

(iii) NOTIFICATION OF ELECTION.—A retail electricity supplier shall inform the Administrator of its election under clause (ii) not later than 180 days after the date of enactment of this Act.

(C) MINIMUM PERCENTAGE OF ZERO-EMISSION ELECTRICITY.—The term “minimum percentage of zero-emission electricity” means, with respect to a retail electricity supplier—

(i) for calendar year 2023, the baseline zero-emission electricity percentage;

(ii) for each of calendar years 2024 through 2030, the amount, not to exceed 100 percent, obtained by adding—

(I) the minimum percentage of zero-emission electricity for the previous calendar year; and

(II) the 2020s annual percentage increase;

(iii) for calendar year 2031, 84 percent;

(iv) for calendar year 2032, 88 percent;

(v) for calendar year 2033, 92 percent;

(vi) for calendar year 2034, 96 percent; and

(vii) for calendar year 2035 and each calendar year thereafter, 100 percent.

(b) Reporting on behind-the-Meter generation systems.—Effective beginning in calendar year 2023, each retail electricity supplier serving one or more behind-the-meter generation systems may, not later than January 1 of each calendar year, submit to the Administrator—

(1) verification of the carbon intensity of behind-the-meter generation systems connected to the retail electricity supplier; and

(2) the quantity of electric energy generated by each such behind-the-meter generation system that is consumed for a useful purpose by electric consumers served by the retail electricity supplier.

(c) Alternative compliance payments.—

(1) IN GENERAL.—A retail electricity supplier may satisfy the requirements of subsection (a) with respect to a calendar year, in whole or in part, by submitting to the Administrator, in lieu of each zero-emission electricity credit that would otherwise be due, an alternative compliance payment equal to the amount determined for such calendar year pursuant to subparagraph (2).

(2) CALCULATION.—The Administrator shall calculate the alternative compliance payment under subparagraph (1) for each calendar year as follows:

(A) For calendar year 2023, the alternative compliance payment shall be $40.

(B) For calendar year 2024 and each calendar year thereafter, the Administrator shall—

(i) increase the prior calendar year amount by 3 percent; and

(ii) adjust for inflation.

(a) Establishment.—Not later than 1 year after the date of enactment of this Act, the Administrator shall establish a zero-emission electricity credit trading program under which—

(1) the Administrator shall record, track, auction, and transfer zero-emission electricity credits; and

(2) a generator to whom such zero-emission electricity credits are issued may sell or otherwise transfer those credits, as provided or allowed by applicable contracts, through—

(A) any auction established under the zero-emission electricity credit trading program;

(B) direct sales; or

(C) other transactional arrangements that sell electric energy or generating capacity either separately or combined with the transfer of zero-emission electricity credits, including transactions that pair zero-emission electricity credits with the demand of the retail electricity supplier.

(b) Administration.—In carrying out the program under this section, the Administrator shall ensure that a zero-emission electricity credit may be—

(1) submitted only once under section 202(a); and

(2) only purchased by, transferred to, or otherwise secured by a retail electricity supplier.

(c) Delegation of market function.—

(1) IN GENERAL.—In carrying out the program under this section, the Administrator may delegate, to one or more appropriate entities—

(A) the administration of a transparent national market for the sale or trade of zero-emission electricity credits; and

(B) the tracking of dispatch of zero-emission electricity generation.

(2) ADMINISTRATION.—In making a delegation under paragraph (1), the Administrator shall ensure that the tracking and reporting of information concerning the dispatch of zero-emission electricity generation is transparent, verifiable, and independent of any interests subject to an obligation under this title.

(d) Banking of zero-Emission electricity credits.—A zero-emission electricity credit may be used for compliance with the requirements of section 202 for the calendar year for which the zero-emission electricity credit is issued and the subsequent 3 calendar years.

(a) Issuance of zero-Emission electricity credits.—The Administrator shall issue to each generator a quantity of zero-emission electricity credits determined in accordance with this section, not later than March 1 of the calendar year after the calendar year for which the zero-emission electricity credits are issued.

(b) General rules on credit issuance.—Except as otherwise provided in this section, the Administrator shall issue to a generator generating zero-emission electricity during a calendar year a quantity of zero-emission electricity credits for such generation that is equal to the product obtained by multiplying—

(1) the qualified electricity generation of the generator during such calendar year; by

(2) the number that equals—

(A) 1.0; less

(B) the quotient obtained by dividing—

(i) the average carbon intensity of the generating units of such generator for such calendar year, as determined in accordance with subsection (c); by

(ii) the carbon intensity factor.

(c) General rules on determining carbon intensity.—Notwithstanding any other provision of this section, the Administrator shall determine the carbon intensity of each generating unit of a generator. Such determination shall be made—

(1) using data and methods from the Air Emission Measurement Center of the Environmental Protection Agency for emission testing and monitoring, including—

(A) continuous emission monitoring systems; and

(B) predictive emission monitoring systems; and

(2) with respect to a determination of the carbon intensity of any generating unit using qualified renewable biomass or qualified low-carbon fuel, or generating qualified waste-to-energy, in consultation with—

(A) the Secretary of Agriculture; and

(B) the Secretary of the Interior.

(d) Carbon intensity for certain categories of generating units.—

(1) GENERATING UNITS UTILIZING TECHNOLOGIES WITHOUT DIRECT EMISSIONS.—The Administrator shall assign a carbon intensity of zero for any generating unit of a generator that does not produce direct emissions of any greenhouse gas in generating electric energy, including any generating unit that generates electric energy only through the use of solar, wind, ocean, current, wave, tidal, geothermal, nuclear energy, or hydropower technology (except as described under paragraph (3)).

(2) GENERATING UNITS UTILIZING TECHNOLOGIES UTILIZING FOSSIL FUELS.—

(A) ACCOUNTING FOR UPSTREAM GREENHOUSE GAS EMISSIONS.—In determining the carbon intensity of each generating unit using fossil fuel, the Administrator shall account for the following emissions as if emitted directly by the generating unit:

(i) The carbon dioxide emissions of the generating unit.

(ii) With respect to the amount of carbon dioxide and methane emissions that occur during extraction, flaring, processing, transmission, and transportation of the fossil fuel—

(I) the average amounts of carbon dioxide and methane emissions, in terms of carbon dioxide equivalent, associated with such fossil fuel in the United States; or

(II) with respect to a generator that the Administrator determines under subparagraph (B) has demonstrated that the fossil fuel consumed by such generator is associated with the release of smaller amounts of carbon dioxide and methane emissions than the amounts described in subclause (I), such smaller amounts.

(B) DETERMINATION.—

(i) IN GENERAL.—In determining both the average amount of emissions associated with a fossil fuel in the United States and the emissions of each generating unit using fossil fuel under subparagraph (A), the Administrator shall utilize the best available science, including with respect to the measurement of low-frequency high-emission events, including data from the detection of natural gas flaring from the satellite observations of the National Oceanic and Atmospheric Administration.

(ii) DETERMINATION FACTORS.—The Administrator may determine that a generator has demonstrated that the fossil fuel consumed by such generator is associated with the release of smaller amounts of carbon dioxide and methane emissions than the amounts described in subparagraph (A)(ii)(I) if the demonstration—

(I) relies on the detection of fugitive and routine emissions from the applicable facilities through the use of continuous monitoring devices operated by one or more independent parties;

(II) relies on measurements that occur on a continuing basis and no less frequently than once per day;

(III) relies on measurements that are capable of detecting methane emissions at least as small as one gram of methane per second; and

(IV) accounts for low-frequency, high-emission events.

(iii) PUBLIC AVAILABILITY.—The information provided to the Administrator by a generator to make a determination under this subparagraph shall be available to the public upon such determination.

(C) STANDARDS.—The Administrator shall promulgate the standards for measurement necessary to implement subparagraphs (A) and (B) not less than 2 years after the date of enactment of this subtitle and shall update such standards every 5 years thereafter, based on the best available science and technology, including by increasing the level of frequency required under subparagraph (B)(i)(II) and decreasing the lower detection limit required under subparagraph (B)(i)(III).

(3) HYDROPOWER UTILIZING A NEW RESERVOIR.—In determining the carbon intensity of each generating unit using hydropower associated with a reservoir constructed after the date of enactment of this Act, the Administrator shall account for the greenhouse gas emissions that can be attributed to the hydropower facility, including the applicable new reservoir.

(e) Quantity of credits issued for certain categories of generating units.—

(1) QUALIFIED COMBINED HEAT AND POWER SYSTEMS.—

(A) IN GENERAL.—The Administrator shall issue to a generator generating zero-emission electricity during a calendar year using a generating unit that is a qualified combined heat and power system a quantity of zero-emission electricity credits for such generation that is equal to—

(i) the product obtained by multiplying—

(I) the number of megawatt-hours of electric energy generated by the qualified combined heat and power system during such calendar year; by

(II) the number that equals—

(aa) 1.0; less

(bb) the quotient obtained by dividing—

(AA) the carbon intensity of the qualified combined heat and power system; by

(BB) the carbon intensity factor; less

(ii) the product obtained by multiplying—

(I) the number of megawatt-hours of electric energy generated by the qualified combined heat and power system that are consumed onsite during such calendar year; by

(II) the average of the minimum percentage of zero-emission electricity (as defined in section 202(a)(5)) for the calendar year for retail electricity suppliers in the region of the generator, as determined by the Administrator.

(B) ADDITIONAL CREDITS.—In addition to zero-emission electricity credits issued under subparagraph (A), the Administrator shall issue to a generator described in subparagraph (A) zero-emission electricity credits for greenhouse gas emissions avoided as a result of the use of the applicable qualified combined heat and power system, rather than a separate thermal source, to meet the thermal needs of the generator or one or more additional entities.

(C) APPLICABILITY.—This paragraph shall not apply with respect to a qualified combined heat and power system using qualified renewable biomass.

(2) QUALIFIED RENEWABLE BIOMASS.—The Administrator shall issue to a generator generating zero-emission electricity during a calendar year using qualified renewable biomass a quantity of zero-emission electricity credits for such generation that is equal to the product obtained by multiplying—

(A) the qualified electricity generation of the generator using qualified renewable biomass during such calendar year; by

(B) the average carbon intensity of the generating units of the generator that use qualified renewable biomass.

(3) QUALIFIED WASTE-TO-ENERGY.—The Administrator shall issue to a generator generating zero-emission electricity during a calendar year that is qualified waste-to-energy a quantity of zero-emission electricity credits for such generation that is equal to the product obtained by multiplying—

(A) the qualified waste-to-energy of the generator that is qualified electricity generation during such calendar year; by

(B) the average carbon intensity of the generating units of the generator used to generate qualified waste-to-energy.

(4) QUALIFIED LOW-CARBON FUELS.—

(A) IN GENERAL.—Except as provided in subparagraph (C), the Administrator shall issue to a generator generating zero-emission electricity during a calendar year using qualified low-carbon fuels a quantity of zero-emission electricity credits for such generation that is equal to the product obtained by multiplying—

(i) the qualified electricity generation of the generator using qualified low-carbon-fuels during such calendar year; by

(ii) the average carbon intensity of the generating units of the generator that use qualified low-carbon fuels.

(B) ADJUSTMENT FOR PRODUCTION.—In determining the carbon intensity of each generating unit using a qualified low-carbon fuel, the Administrator shall account for the greenhouse gas emissions associated with the production of such qualified low-carbon fuel.

(C) NO DOUBLE-COUNTING.—The Administrator shall not issue zero-emission electricity credits for electric energy generated using a qualified low-carbon fuel that is generated from electric energy for which a generator is issued a zero-emission electricity credit under this title.

(5) CARBON CAPTURE, STORAGE, AND UTILIZATION.—

(A) DEFINITIONS.—In this paragraph, the term “qualified carbon oxide” has the meaning given the term in section 45Q of the Internal Revenue Code of 1986.

(B) QUANTITY OF CREDITS.—Except as otherwise provided in this section, the Administrator shall, with respect to a given calendar year, issue to a generator a quantity of zero-emission electricity credits for the capture and storage or utilization of qualified carbon oxide from a waste stream of the generator that is equal to the product obtained by multiplying—

(i) the qualified electricity generation of the generator during such calendar year; by

(ii) the difference between—

(I) 1.0; and

(II) the quotient obtained by dividing—

(aa) the carbon intensity of the generator; by

(bb) the carbon intensity factor.

(6) DIRECT AIR CAPTURE OF CARBON DIOXIDE.—

(A) QUANTITY OF CREDITS.—The Administrator shall issue to an entity that captures carbon dioxide from the atmosphere and stores or utilizes such carbon dioxide 1 zero-emission electricity credit for every 0.82 metric tons of carbon dioxide equivalent that is captured and stored or utilized.

(B) SPECIAL RULES.—

(i) REGULATIONS.—Subject to clause (ii), not later than 1 year after the date of enactment of this Act, the Administrator shall promulgate regulations establishing—

(I) the conditions under which carbon dioxide may be safely and permanently stored for purposes of issuing zero-emission electricity credits under this paragraph;

(II) the methods and processes by which carbon dioxide may be utilized in a manner that ensures the removal of the carbon dioxide safely and permanently from the atmosphere, including utilization in the production of substances, such as plastics and chemicals; and

(III) requirements to account, in issuing zero-emission electricity credits under this section, for the risk that some fraction of the carbon dioxide intended for permanent storage or utilization may nevertheless be emitted into the atmosphere.

(ii) EXISTING REQUIREMENTS.—In promulgating regulations pursuant to this subparagraph, the Administrator shall incorporate any existing requirements for the permanent geologic storage of carbon dioxide, including any requirements promulgated under section 45Q of the Internal Revenue Code of 1986.

(C) AVOIDING DOUBLE COUNTING.—The Administrator shall seek to ensure that direct air capture activities receiving a credit under this paragraph are not used for compliance with an obligation to reduce or avoid greenhouse gas emissions, or increase greenhouse gas sequestration, under another Federal, State, foreign, or international regulatory system.

(f) Maximum quantity of credits.—Except as provided under subsection (e)(1), the total quantity of zero-emission electricity credits issued under this section to a generator for a calendar year shall not exceed the number of megawatt-hours of the qualified electricity generation of the generator for the calendar year.

(g) No negative credits.—Notwithstanding any other provision of this title, the Administrator shall not issue a negative quantity of zero-emission electricity credits to any generator.

(h) Facilities outside the United States.—With respect to electricity generated by a facility or generating unit that is located outside of the United States, a zero-emission electricity credit may be issued only with respect to electricity that is sold for resale in the United States.

(i) Contracts.—A zero-emission electricity credit issued for electricity that is—

(1) sold for resale under a contract in effect on the date of enactment of this title shall be issued to the purchasing retail electricity supplier in proportion to the zero-emission electricity purchased by such retail electricity supplier under the contract, unless otherwise provided by the contract; and

(2) sold for resale under a contract in which a generating unit is not specified, shall be issued to the purchasing retail electricity supplier in proportion to the ratio of zero-emission electricity generation from the generator making such sale for resale.

(j) Federal Power Marketing Administration.—A zero-emission electricity credit issued for electricity that is generated by a Federal Power Marketing Administration shall be conveyed to the retail electricity supplier that is purchasing the electricity.

(k) Labor standards requirements.—

(1) CONSTRUCTION OF NEW GENERATING UNITS.—

(A) IN GENERAL.—The Administrator shall take such action as may be necessary to insure that all laborers and mechanics employed by contractors or subcontractors for the construction of a generating unit shall be paid wages at rates not less than those prevailing for the same type of work on similar construction in the locality as determined by the Secretary of Labor in accordance with subchapter IV of chapter 31 of title 40, United States Code. 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) PROHIBITION.—Notwithstanding anything to the contrary in this subtitle, the Administrator shall not issue a zero-emission electricity credit for generation from a generating unit unless prevailing wages were paid for the construction of such generating unit as set forth in subparagraph (A).

(C) APPLICABILITY.—This subsection applies to any generating unit the construction of which commences on or after six months after the date of enactment of this subtitle.

(2) OPERATION AND MAINTENANCE OF GENERATING UNITS.—

(A) IN GENERAL.—Notwithstanding anything to the contrary in this subtitle, the Administrator shall not issue zero-emission electricity credits for generation from a generating unit unless the owner and operator of such generating unit, including all contractors and subcontractors, remains neutral with respect to the exercise of employees and labor organizations of the right to organize and bargain under the National Labor Relations Act (29 U.S.C. 151 et seq.).

(B) PROHIBITION.—Notwithstanding anything to the contrary in this subtitle, the Administrator shall not issue a zero-emission electricity credit to a generator not in compliance with the requirements of this subsection.

(3) RULEMAKING.—Not later than 18 months after the date of enactment of this subtitle, the Administrator, after consultation with the Secretary of Labor, shall promulgate regulations implementing the requirements of this subsection, including provisions for verification of ongoing compliance with such requirements. requiring adoption and compliance with such labor standards as the Administrator determines appropriate in order for generators to receive the full amount of the zero-emission electricity credits for which they are otherwise eligible.

(l) Study on line loss.—

(1) IN GENERAL.—The Administrator shall conduct a study to evaluate any potential need to account for the losses in electricity from transmission and storage between generating units and retail electricity suppliers.

(2) REPORT TO CONGRESS.—The Administrator shall submit a report to the Committee on Energy and Commerce on the results of the study required by this subsection by not later than September 30, 2028. The report shall include an evaluation of the potential effect, if any, of any such losses on the requirements of this subtitle to reach 100 percent zero-emission electricity by 2035.

(a) Carbon Mitigation Fund.—

(1) CREATION OF FUND.—There is hereby established a trust fund, to be known as the “Carbon Mitigation Fund”, consisting of such amounts as may be appropriated to such fund as provided in this section.

(2) ADMINISTRATION.—The Carbon Mitigation Fund shall be administered by the Administrator.

(3) TRANSFERS TO TRUST FUND.—There are hereby appropriated to the Carbon Mitigation Fund each year amounts equal to the sum of the amounts that are—

(A) attributable to alternative compliance payments made pursuant to section 202(c); and

(B) collected as a civil penalty under section 209.

(4) EXPENDITURES.—Amounts in the Carbon Mitigation Fund shall be available without further appropriation or fiscal year limitation to carry out the program under subsection (b).

(b) Program.—

(1) IN GENERAL.—The Administrator shall carry out a program to award funds to entities to carry out activities in States that avoid emissions of greenhouse gases or remove carbon dioxide from the atmosphere.

(2) ACTIVITIES.—Activities for which the Administrator may award funds under the program carried out pursuant to this subsection include—

(A) improvement to the energy efficiency of existing facilities and devices;

(B) the replacement of natural gas space heaters, natural gas water heaters, and natural gas stoves, with electric appliances;

(C) the replacement of fossil fuel-powered vehicles owned by State and local agencies with electric vehicles or other low-carbon fuel vehicles;

(D) the replacement of fossil fuel-powered ground airport and seaport vehicles with electric vehicles or other low-carbon fuel vehicles;

(E) installation of fast charging stations for electric vehicles along highways and other public roads in urban areas and rural areas;

(F) beneficial electrification-related reductions not otherwise identified in this paragraph;

(G) direct air capture and permanent sequestration or utilization of carbon dioxide;

(H) any activity that is endorsed by a generator or a retail electricity supplier that avoids emissions of greenhouse gases or removes carbon dioxide from the atmosphere; and

(I) improvement to the electrical grid that facilitates increased zero-emission electricity generation or improves energy efficiency.

(3) EXCLUSIONS.—The Administrator may not award funds to an entity under the program carried out pursuant to this subsection for any activity for which the entity has been issued a zero-emission electricity credit.

(4) CRITERIA.—The Administrator may only award funds under the program carried out pursuant to this subsection for an activity for which the Administrator determines that—

(A) the amount of carbon dioxide emissions avoided or removed from the atmosphere by the activity will be adequately confirmed through monitoring, reporting and verification;

(B) the risk that some amount of the carbon dioxide that is removed from the atmosphere by the activity may reenter the atmosphere at a later date is adequately reflected through a discounting of the amount described in paragraph (5)(C)(ii);

(C) the risk that some amount of the greenhouse gases, the emission of which is avoided by the activity, may enter the atmosphere at a later date is adequately reflected through a discounting of the amount described in paragraph (5)(C)(i);

(D) the risk that the activity may directly or indirectly increase the release of greenhouse gases from another location has been adequately addressed;

(E) the activity is not required, or being fully supported financially by, a Federal, State, or local law, program, or activity; and

(F) if the activity involves land use, the activity aligns with the Sustainable Development Goals of the United Nations, including being consistent with the conservation of biological diversity and natural ecosystems (including forests and grasslands), and shall maintain ecosystem services and enhance other social and environmental benefits.

(5) PROPOSALS.—In order to qualify for an award of funds under this subsection, an entity shall submit to the Administrator a proposal that—

(A) describes the activity to be carried out with the award of funds in a manner specified by the Administrator;

(B) identifies the amount of money for which the entity is applying;

(C) identifies the amount, to be measured in one-year increments, of—

(i) greenhouse gas emissions to be avoided by the activity, measured in terms of carbon dioxide equivalent; or

(ii) carbon dioxide to be removed from the atmosphere by the activity, measured in metric tons;

(D) identifies the bid amount, expressed as dollars per metric ton, which shall be the quotient obtained by dividing the amount identified under subparagraph (B) by the amount identified under subparagraph (C);

(E) provides any information required by the Administrator in order to make a determination described in paragraph (4); and

(F) provides any other certifications the Administrator determines appropriate.

(6) DEADLINES.—

(A) SOLICITATION.—Not later than February 1, 2024, and each February 1 thereafter, the Administrator shall solicit proposals for activities described in paragraph (1) for which the Administrator may award funds under the program carried out pursuant to this subsection.

(B) IDENTIFICATION.—Not later than June 1, 2024, and each June 1 thereafter, the Administrator shall identify proposals that have been submitted by March 1 of such calendar year for activities described in paragraph (1) that qualify for an award of funds under the program carried out pursuant to this subsection.

(C) AWARD OF FUNDS.—Not later than August 1, 2024, and each August 1 thereafter, the Administrator shall award to entities funds available in the Carbon Mitigation Fund established under section 9512 of the Internal Revenue Code of 1986 for activities described in proposals identified under subparagraph (B).

(7) AWARDS TO MOST COST-EFFECTIVE ACTIVITIES.—The Administrator shall award funds to entities for activities described in proposals identified under paragraph (6)(B)—

(A) beginning by awarding funds to the entity submitting such a proposal with the lowest bid amount identified pursuant to paragraph (5)(D); and

(B) then awarding funds to entities sequentially by entity submitting such a proposal with the next lowest bid amount so identified until all funds are awarded.

(c) Consultation.—The Administrator shall consult with the Secretary of the Interior and the Secretary of Agriculture in promulgating regulations to measure, monitor, and verify any natural sequestration activities awarded under this section.

(a) Savings provision.—

(1) IN GENERAL.—Except as provided in paragraph (2), nothing in this subtitle affects the authority of a State or a political subdivision of a State to adopt or enforce any law or regulation relating to—

(A) clean energy or renewable energy;

(B) the regulation of a retail electricity supplier; or

(C) greenhouse gas emissions

(2) FEDERAL LAW.—No law or regulation of a State or a political subdivision of a State may relieve a retail electricity supplier from compliance with an applicable requirement of this title.

(b) Coordination.—The Administrator, in consultation with States that have clean energy programs or renewable energy programs in effect, shall facilitate, to the maximum extent practicable, coordination between the implementation of this subtitle and the relevant State clean energy program or renewable energy program.

(c) More stringent State clean energy programs.—

(1) DETERMINATION.—

(A) IN GENERAL.—The Administrator, in consultation with States that have State clean energy programs or renewable energy programs in effect, shall determine whether each such State is implementing a more stringent State clean energy program.

(B) DEADLINES.—The Administrator shall make a determination under subparagraph (A)—

(i) not later than January 1, 2022, with respect to a State clean energy or renewable energy program in effect on the date of enactment of this Act, and every 5 years thereafter; and

(ii) not later than 6 months after the date of the enactment by a State, after the date of enactment of this Act, of a new or modified existing clean energy or renewable energy program, and every 5 years thereafter.

(C) PERIOD.—A determination under this paragraph shall be effective until the earlier of—

(i) the date that is 5 years after the date of the determination; or

(ii) the date on which the Administrator makes a subsequent determination under this paragraph with respect to the applicable State program.

(2) DEEMED COMPLIANCE.—If the Administrator determines, under paragraph (1), that a State has a more stringent State clean energy program, a retail electricity supplier that is subject to and in compliance with such more stringent State clean energy program shall be deemed to be in compliance with the requirements of this title for the period during which the determination is effective.

(3) PROHIBITION AGAINST DOUBLE-COUNTING.—The Administrator, in consultation with States implementing a more stringent State clean energy program, shall promulgate regulations prohibiting the issuance of a zero-emission electricity credit under this subtitle for an amount of electric energy for which one or more State clean energy credits are issued under, and used for compliance with, a more stringent State clean energy program.

(d) Qualified electricity generation eligible in both State and Federal programs.—The Administrator shall not refuse to issue or accept submission of a zero-emission electricity credit because the same megawatt-hour of zero-emission electricity associated with such credit is also used for compliance with a State law in a State that does not have a more stringent State clean energy program.

(e) Definitions.—In this section:

(1) STATE CLEAN ENERGY CREDIT.—The term “State clean energy credit” means a certificate corresponding to the electricity generated from renewable or other zero-emission electricity sources that is issued under a law enacted by a State.

(2) MORE STRINGENT STATE CLEAN ENERGY PROGRAM.—The term “more stringent State clean energy program” means a law of a State that—

(A) is demonstrated to the satisfaction of the Administrator to result in a greater percentage of qualified energy deployment than would be achieved in the State under this subtitle over a 5-year period; and

(B) includes compliance mechanisms, including the imposition of penalties, that are at least as effective in enforcing compliance as the system of enforcement under this title.

Not later than January 1, 2034, the Administrator shall submit a report to Congress with an evaluation and a forecast of the remaining barriers to achieving 100 percent generation of electric energy with no emissions of carbon dioxide by calendar year 2035.

The Administrator may require any retail electricity supplier, generator, or other entity that the Administrator determines appropriate, to submit to the Administrator any information the Administrator determines to be appropriate to carry out this subtitle.

(a) In general.—Subject to subsection (b)—

(1) a retail electricity supplier that fails to meet the requirements of section 202 shall be subject to a civil penalty in an amount equal to the product obtained by multiplying—

(A) the aggregate quantity of zero-emission electricity credits that the retail electricity supplier failed to submit for the calendar year to comply with section 202; by

(B) 300 percent of the amount of alternative compliance payment for the calendar year, as determined under section 202(c); and

(2) an entity required to submit information pursuant to section 208 that violates such section by failing to submit the information, or submitting false or misleading information, shall be subject to a civil penalty of $25,000 for each day during which such violation continues.

(b) Waivers and mitigation.—

(1) FORCE MAJEURE.—The Administrator may mitigate or waive a civil penalty under subsection (a) if the applicable retail electricity supplier or other entity was unable to comply with an applicable requirement for reasons outside of the reasonable control of the retail electricity supplier or other entity.

(2) REDUCTION FOR STATE PENALTIES.—The Administrator shall reduce the amount of a penalty determined under subsection (a) by the amount paid by the applicable retail electricity supplier to a State for failure to comply with the requirement of a State clean energy program, if the State requirement is more stringent than the applicable requirement of this title.

(c) Procedure for assessing penalty.—The Administrator shall assess a civil penalty under this section in accordance with section 113(d) of the Clean Air Act (42 U.S.C. 7413(d)).

Except as otherwise provided in this subtitle, not later than 2 years after the date of enactment of this subtitle, the Administrator shall promulgate regulations to implement this subtitle.

It is the policy of the United States that—

(1) the planning, siting, permitting, and operation of a modernized and integrated bulk electricity transmission system should facilitate a reliable, resilient, and decarbonized electricity supply and enable national greenhouse gas emissions reductions;

(2) electric grid system planning should take into account all significant demand-side and supply-side options, including energy efficiency, distributed and localized electricity generation, smart grid technologies and practices, demand response, energy storage, advanced transmission technologies that increase capacity or efficiency of existing transmission facilities, voltage regulation technologies, high capacity conductor and superconductor technologies, underground transmission technologies, and new conventional electric transmission capacity and corridors;

(3) the public interest is served by overcoming regulatory and jurisdictional barriers to coordinated and cost-effective investments in the Nation’s electric grid system that enable deployment of cost-effective clean energy resources; and

(4) the Federal Government, through the Department of Energy, the Federal Energy Regulatory Commission, and other relevant agencies, and the national laboratories, should facilitate and advance cost-effective investments in the Nation’s electric grid system, including the bulk electricity transmission system, to enhance reliability, resiliency, and access to clean energy resources by—

(A) accounting for a broad range of quantifiable benefits, including reduction in delivered cost of energy, improved reliability and resilience, reduced emissions of criteria air pollutants, and contribution to decarbonizing the electric sector;

(B) promoting cost allocation methodologies that transparently allocate costs based on accrued benefits and that account for broad and varied benefits offered by interregional and regional transmission solutions; and

(C) prioritizing regional and interregional projects that provide access to demand for clean energy resources.

Not later than 1 year after the date of enactment of this Act, the Federal Energy Regulatory Commission shall carry out a review of, and submit to Congress a report—

(1) describing its progress, pursuant to the rule issued under section 219 of the Federal Power Act (16 U.S.C. 824s), in encouraging deployment of transmission technologies and other measures, including dynamic line ratings, flow control devices, and network topology optimization, to increase the capacity and efficiency of existing transmission facilities and improve the operation of the facilities; and

(2) that includes an evaluation of how such rule, and any other applicable rule or policy of the Commission, could be modified to encourage greater deployment of such transmission technologies and other measures.

(a) Designation of national interest electric transmission corridors.—Section 216(a) of the Federal Power Act (16 U.S.C. 824p(a)) is amended—

(1) in the heading, by striking “Designation of National Interest Electric Transmission Corridors” and inserting “Designation of high priority interstate transmission corridors”;

(2) in paragraph (1)—

(A) by striking “the date of enactment of this section” and inserting “the date of enactment of the CLEAN Future Act,”; and

(B) by striking “congestion” and inserting “congestion, with a particular focus on the integration of renewable energy resources”;

(3) in paragraph (2)—

(A) by striking “issue a report” and inserting “, at least once every 3 years, issue a report”;

(B) by striking “designate” and inserting “designate as a high priority interstate transmission corridor”; and

(C) by striking “experiencing electric energy transmission capacity constraints or congestion that adversely affects consumers as a national interest electric transmission corridor.” and inserting the following: “that—

“(A) is experiencing electric energy transmission capacity constraints or congestion that adversely affects consumers; or

“(B) could be used to improve the integration of renewable energy resources.”;

(4) in paragraph (4)—

(A) by striking “national interest electric transmission corridor” and inserting “high priority interstate transmission corridor”;

(B) in subparagraph (D), by striking the “and” at the end;

(C) in subparagraph (E), by striking “security.” and inserting “security;”; and

(D) by adding at the end the following:

“(F) the designation would improve the integration of renewable energy resources; and

“(G) the designation would result in a reduction in the cost to purchase electric energy for consumers.”; and

(5) by adding at the end the following:

“(5) In determining the boundary of a geographic area to be designated as a high priority interstate transmission corridor under paragraph (2), the Commission shall only designate the smallest geographic area possible.”.

(b) Construction Permit.—Section 216(b) of the Federal Power Act (16 U.S.C. 824p(b)) is amended to read as follows:

“(b) Construction Permit.—The Commission may, after notice and an opportunity for hearing, issue one or more permits for the construction or modification of electric transmission facilities in a high priority interstate transmission corridor designated by the Secretary under subsection (a) if the Commission finds that—

“(1) (A) a State in which the transmission facilities are to be constructed or modified does not have authority to—

“(i) approve the siting of the facilities; or

“(ii) consider the interstate benefits expected to be achieved by the proposed construction or modification of transmission facilities in the State;

“(B) the applicant for a permit is a transmitting utility under this Act but does not qualify to apply for a permit or siting approval for the proposed project in a State because the applicant does not serve end-use customers in the State; or

“(C) a State commission or other entity that has authority to approve the siting of the facilities has—

“(i) not approved or denied an application seeking approval pursuant to applicable law by the date that is 1 year after the filing of the application or 1 year after the designation of the relevant high priority interstate transmission corridor, whichever is later;

“(ii) conditioned its approval in such a manner that the proposed construction or modification will not significantly reduce transmission congestion in interstate commerce or is not economically feasible; or

“(iii) denied an application seeking approval pursuant to applicable law; and

“(2) the applicant for a permit sufficiently considered using a non-transmission alternative (as defined in section 224) for purposes of addressing the needs of the proposed electric transmission facility.”.

(c) Coordination of Federal Authorizations for Transmission Facilities.—Section 216(h) of the Federal Power Act (16 U.S.C. 824p(h)) is amended—

(1) in paragraph (7)(B)(i), by striking “date of enactment of this section” and inserting “date of enactment of the CLEAN Future Act”; and

(2) in paragraph (7)(A), by striking “this section” and inserting “the CLEAN Future Act”.

(d) Interstate Compacts.—Subsection (i)(4) of section 216 of the Federal Power Act (16 U.S.C. 824p) is amended by striking “the members of the compact are in disagreement and the Secretary makes, after notice and an opportunity for a hearing, the finding described in subsection (b)(1)(C)” and inserting “the Secretary finds that the members of the compact are in disagreement after the date that is 1 year after the filing of an application for the facility or 1 year after the designation of the relevant high priority interstate transmission corridor, whichever is later”.

Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is amended by adding at the end the following:

Part III of the Federal Power Act (16 U.S.C. 825 et seq.) is amended by inserting after section 317 the following:

(a) Technical conference.—

(1) IN GENERAL.—Not later than 9 months after the date of enactment of this section, the Commission shall convene a technical conference to evaluate how regional transmission planning needs are identified in regional transmission planning processes.

(2) PARTICIPATION.—The technical conference shall be led by the members of the Commission, and the Commission shall invite participation from representatives of ratepayers and such other entities as the Commission determines appropriate.

(3) TOPICS.—The following topics shall be considered during the technical conference:

(A) How to improve the transparency of the identification of transmission planning needs.

(B) How to increase stakeholder input in the identification of transmission planning needs.

(C) How to update methodologies that are used to identify transmission planning needs for purposes of—

(i) ensuring that such needs may lead to solutions that recognize the multiple benefits of a proposed solution, such as economic, reliability, and public policy-based benefits; and

(ii) using scenario-based forecasting to accurately predict future transmission planning needs.

(D) How to ensure that—

(i) unnecessary transmission facilities are not selected in regional transmission planning processes; and

(ii) more efficient or cost-effective transmission solutions are selected in regional transmission planning processes.

(4) PUBLIC COMMENT.—The Commission shall provide an opportunity for public comment on the technical conference.

(b) Rulemaking.—Not later than 1 year after the conclusion of the technical conference, the Commission shall publish in the Federal Register a rule, in accordance with section 206 of the Federal Power Act (16 U.S.C. 824e), that requires transmission providers to—

(1) increase transparency in the identification of transmission planning needs;

(2) update methodologies that are used to identify transmission planning needs for purposes of providing more accurate forecasting of expected transmission planning needs; and

(3) update their methodologies to ensure that the identification of transmission planning needs in regional planning processes may lead to solutions that recognize the multiple benefits of a proposed solution, such as economic, reliability, and public policy-based benefits.

(c) Definitions.—In this section:

(1) COMMISSION.—The term “Commission” means the Federal Energy Regulatory Commission.

(2) TRANSMISSION PROVIDER.—The term “transmission provider” means a public utility (as defined in section 201 of the Federal Power Act (16 U.S.C. 824)) that owns, operates, or controls facilities used for the transmission of electric energy in interstate commerce.

(a) Technical conference.—

(1) IN GENERAL.—Not later than 6 months after the date of enactment of this section, the Federal Energy Regulatory Commission shall convene a technical conference to consider how to develop an interregional transmission planning process.

(2) PARTICIPATION.—The technical conference shall be led by the members of the Commission, and the Commission shall invite participation from representatives of ratepayers and such other entities as the Commission determines appropriate.

(3) TOPICS.—The following topics shall be considered during the technical conference:

(A) How transmission providers in adjacent transmission planning regions can plan for interregional transmission projects.

(B) How an interregional planning process will provide for the evaluation and facilitation of the integration of renewable energy resources, particularly those located far away from load centers.

(C) Cost allocation for interregional transmission projects, including whether public funding should affect the cost allocation of an interregional transmission project receiving such funding, and if so, what the effect should be.

(D) How interregional transmission projects that address public policy needs in the applicable regions could be facilitated by an interregional transmission planning process.

(E) Whether transmission providers in transmission planning regions should be required to develop similar or identical processes for evaluating the benefits of proposed interregional transmission projects.

(F) Any effects an interregional transmission planning process would have on existing local and regional transmission planning processes.

(4) PUBLIC COMMENT.—The Commission shall provide an opportunity for public comment on the technical conference.

(b) Rulemaking.—Not later than 18 months after the conclusion of the technical conference, the Commission shall publish in the Federal Register a rule, in accordance with section 206 of the Federal Power Act (16 U.S.C. 824e), that requires transmission providers to—

(1) engage in formalized interregional transmission planning processes, which shall include the development of cost allocation methodologies in accordance with guidelines developed by the Commission; and

(2) consider reduced costs of electric energy to customers and the integration of renewable energy resources as benefits for interregional transmission planning purposes.

(c) Definitions.—In this section:

(1) COMMISSION.—The term “Commission” means the Federal Energy Regulatory Commission.

(2) INTERREGIONAL TRANSMISSION PLANNING PROCESS.—The term “interregional transmission planning process” means a process to evaluate electric energy transmission needs jointly by transmission providers in two or more adjacent transmission planning regions.

(3) INTERREGIONAL TRANSMISSION PROJECT.—The term “interregional transmission project” means an interregional project for facilities used for the transmission of electric energy in interstate commerce.

(4) TRANSMISSION PLANNING REGION.—The term “transmission planning region” means a region for which electric energy transmission planning is appropriate, as determined by the Commission.

(5) TRANSMISSION PROVIDER.—The term “transmission provider” means a public utility (as defined in section 201 of the Federal Power Act (16 U.S.C. 824)) that owns, operates, or controls facilities used for the transmission of electric energy in interstate commerce.

(a) Definitions.—In this section:

(1) COVERED TRANSMISSION PROJECT.—The term “covered transmission project” means a high-voltage interstate electricity transmission line, proposed to be constructed and to operate at a minimum of 300 kilovolts of either alternating-current or direct-current electric energy, with respect to which a notice of intent to apply for authorization under State, local, or Tribal law has been filed with the applicable siting authority.

(2) SECRETARY.—The term “Secretary” means the Secretary of Energy.

(3) SITING AUTHORITY.—The term “siting authority” means a State, local, or Tribal governmental entity with authority to make a final determination regarding the siting, permitting, or regulatory status of a covered transmission project proposed to be located in an area under the jurisdiction of the entity.

(b) Establishment.—Not later than 90 days after the date of enactment of this Act, the Secretary shall establish a program to provide assistance to siting authorities for the evaluation of, and decisionmaking process for, applications relating to the siting or permitting of covered transmission projects.

(c) Types of assistance.—

(1) GRANTS.—

(A) IN GENERAL.—The Secretary may, upon request, provide a grant to a siting authority for any of the following:

(i) Studies and analyses of the environmental, reliability, wildlife, cultural, historical, water, land-use, and employment, tax-revenue, market, cost, rate regulation, and other economic impacts of the covered transmission project, including—

(I) assessing the economic benefits and development effects of the transmission capacity of the covered transmission project; and

(II) identifying the public health benefits of substituting clean electricity for fossil-fired generation that creates ozone, particulates, nitrous oxides, and greenhouse gases, often in low-income areas.

(ii) Participation by the siting authority in regulatory proceedings or negotiations in another jurisdiction or under the auspices of a transmission organization (as defined in section 215 of the Federal Power Act (16 U.S.C. 824o)) that is also considering the siting or permitting of the same covered transmission project.

(iii) Participation by the siting authority in regulatory proceedings at the Federal Energy Regulatory Commission or a State regulatory commission determining applicable rates and cost allocation for the covered transmission project.

(iv) The costs of the siting authority of scheduling and conducting public hearings and meetings to present plans and related analysis, take comments, and foster greater public awareness of the benefits and costs of the covered transmission project (including with respect to any proposed siting alternatives).

(B) AMOUNTS.—In providing a grant to a siting authority under subparagraph (A), the Secretary may provide amounts of not more than—

(i) 80 percent of the costs of studies and analyses under subparagraph (A)(i) that are commissioned by the siting authority to be carried out by another entity;

(ii) 50 percent of the costs of studies and analyses under subparagraph (A)(i) that are carried out by the siting authority;

(iii) 50 percent of the costs to the siting authority of participation described in subparagraph (A)(ii);

(iv) 80 percent of the costs to the siting authority of participation described in subparagraph (A)(iii); and

(v) 50 percent of the costs described in subparagraph (A)(iv).

(C) DEADLINE FOR CERTAIN STUDIES.—The Secretary shall provide a grant under subparagraph (A)(i) on the condition that any study carried out pursuant to such subparagraph is completed within one year of being commissioned, or commenced by, the siting authority.

(2) OTHER ASSISTANCE.—The Secretary may, upon request, provide direct assistance to a siting authority in the form of:

(A) Examination of up to three alternate siting corridors within which the covered transmission project feasibly could be sited.

(B) Related scientific, technical, and economic analyses, to be performed at the national laboratories of the Department of Energy.

(C) Hosting and facilitation (including by providing services of expert Department of Energy personnel or neutral arbitrators) of negotiations in settlement meetings involving the siting authority, the covered transmission project applicant and other proponents of the project, siting authorities from other jurisdictions considering the same covered transmission project, and opponents of the covered transmission project, for the purpose of identifying and addressing issues that are preventing approval of the application relating to the siting or permitting of the covered transmission project.

(D) Other measures and actions that may improve the chances of, and shorten the time required for, approval by the siting authority of the application relating to the siting or permitting of the covered transmission project, as the Secretary determines appropriate.

(d) Conditions.—As a condition of receiving assistance under this section, the Secretary shall require a siting authority to agree, in writing—

(1) to reach a final decision on the application relating to the siting or permitting of the covered transmission project not later than two years after the date on which such assistance is first provided, unless the Secretary grants an extension for good cause;

(2) to review, consider, and conduct any negotiations regarding the application relating to the siting or permitting of the covered transmission project (including with respect to any proposed siting alternatives) in good faith and in accordance with a published decision process and schedule;

(3) to objectively and rationally weigh the results of all analyses, evidence, and inputs, and not deny the application relating to the siting or permitting of the covered transmission project without finding compelling evidence that the negative impacts of the covered transmission project (including with respect to any proposed siting alternatives) are greater than its benefits;

(4) in evaluating the impacts, costs, and benefits of the covered transmission project, to not exclude demonstrable regional and national impacts, costs, and benefits that will be experienced within and beyond the area over which the siting authority has jurisdiction;

(5) in evaluating the costs of the covered transmission project, to not deny the application relating to the siting or permitting of the covered transmission project based on an unfair allocation of costs to those within the area over which the siting authority has jurisdiction, except that the siting authority may condition its approval on a fair and feasible allocation of those costs within and beyond the area over which the siting authority has jurisdiction, as determined by the siting authority;

(6) to transparently share, upon request, all information, analyses, and other inputs obtained pursuant to this section, except for any business-confidential information, with all parties, other siting authorities considering the same covered transmission project, and the public;

(7) to not demand funds from the applicant to cover the costs of any analysis, information, or support that it has received from the Secretary;

(8) to provide to the Secretary a full written explanation of any preliminary decision regarding the application relating to the siting or permitting of the covered transmission project, including the information the siting authority found to be dispositive, and to entertain petitions for review, rehearing, or correction of the preliminary decision before making a final decision; and

(9) if a covered transmission project is finally approved by two or more siting authorities for other areas, each of which agrees to accept a greater allocation of the project costs on a per-mile and per-resident basis than is proposed for area under the jurisdiction of the siting authority receiving assistance under this section, to engage in binding arbitration to determine a final decision on siting and permitting the covered transmission project within the area under its own jurisdiction.

(e) Arbitration.—If a siting authority receiving assistance under this section enters into binding arbitration under subsection (d)(9), the siting authority shall select an expert arbitrator who will meet with a second expert arbitrator selected by the siting authorities from other jurisdictions, the two arbitrators then agreeing on the selection of a third expert arbitrator, with all three considering the options and reaching by majority a conclusion on the best option to allow the project to proceed in the least-impact but still feasible manner.

(f) Incentives.—The Secretary may provide economic incentives for climate solutions to a siting authority receiving assistance under this section that makes a final decision approving the relevant application by the deadline required under subsection (d)(1).

(g) Outreach.—The Secretary shall notify siting authorities of the availability of assistance under this section.

(h) Authorization of appropriations.—There is authorized to be appropriated to the Secretary to carry out this section $75,000,000 for each of fiscal years 2022 through 2031, to remain available until expended.

(a) Carbon pricing.—The Federal Energy Regulatory Commission may approve a carbon pricing regime that reflects the externalities associated with greenhouse gas emissions, to be used in setting rates and charges under sections 205 and 206 of the Federal Power Act.

(b) Right to clean energy.—Notwithstanding section 212(h) of the Federal Power Act, no State may establish or enforce any law or regulation that prohibits or unreasonably burdens the purchase of clean electricity in interstate commerce by an ultimate consumer. Nothing in this subsection may be construed to affect any contract in effect on the date of enactment of this section.

(c) Mandatory interconnection and coordination of facilities.—Section 202(a) of the Federal Power Act (16 U.S.C. 824a(a)) is amended—

(1) by striking “voluntary”; and

(2) by adding at the end the following: “The Commission shall require each public utility to place its transmission facilities under the control of an ISO or an RTO not later than two years after the date of enactment of the CLEAN Future Act.”.

Section 319 of the Federal Power Act (16 U.S.C. 825q–1) is amended—

(1) in subsection (a)(1), by inserting “, to facilitate communication with the public relating to, and participation by the public in, matters under the jurisdiction of the Commission, including under this Act and the Natural Gas Act” before the period at the end;

(2) in subsection (b), by striking paragraph (4) and inserting the following:

“(4) The Office shall promote, through outreach, publications, and, as appropriate, direct communication with entities regulated by the Commission—

“(A) improved compliance with rules and orders of the Commission; and

“(B) public participation in matters before the Commission.

“(5) The Director may assign staff to intervene, appear, and participate in administrative, regulatory, or judicial proceedings on behalf of individuals or entities intervening or participating, or proposing to intervene or participate, in proceedings before the Commission by representing the interests of such individuals or entities on any matter before the Commission.

“(6) The Office shall advocate for, and act as a liaison with, environmental justice communities (as defined in section 601 of the CLEAN Future Act) on matters under the jurisdiction of the Commission.”; and

(3) by adding at the end the following:

“(c) Funding.—Funding for the Office shall be derived from fees and charges collected under section 3401 of the Omnibus Budget Reconciliation Act of 1986.”.

(a) Exportation or importation of natural gas; LNG terminals.—Section 3 of the Natural Gas Act (15 U.S.C. 717b) is amended—

(1) in subsection (a), by striking “, unless, after opportunity for hearing, it finds that the proposed exportation or importation will not be consistent with the public interest” and inserting “if, after opportunity for hearing, it finds that the proposed exportation or importation is in the public interest”; and

(2) by amending subsection (c) to read as follows:

“(c) Public interest.—In making a finding under this section regarding whether a proposed exportation or importation is in the public interest, the Commission shall—

“(1) ensure that the potential benefits outweigh any adverse effects; and

“(2) consider—

“(A) the climate policies of affected States;

“(B) regional infrastructure need determinations;

“(C) all environmental impacts and concerns identified pursuant to the National Environmental Policy Act, including any direct, indirect, and cumulative effects on climate change; and

“(D) community and landowner impacts.”.

(b) Extension of facilities; abandonment of service.—Section 7 of the Natural Gas Act (15 U.S.C. 717f) is amended by adding at the end the following:

“(i) Public interest.—In making a finding under this section regarding whether an action is in the public interest, the Commission shall—

“(1) ensure that the potential benefits outweigh any adverse effects; and

“(2) consider—

“(A) the climate policies of affected States;

“(B) regional infrastructure need determinations;

“(C) all environmental impacts and concerns identified pursuant to the National Environmental Policy Act, including any direct, indirect, and cumulative effects on climate change; and

“(D) community and landowner impacts.”.

(a) Requirement.—Section 7(h) of the Natural Gas Act (15 U.S.C. 717f(h)) is amended—

(1) by striking “When any holder” and inserting the following:

(1) Subject to paragraph (2), when any holder”; and

(2) by adding at the end the following new paragraphs:

“(2) A holder of a certificate of public convenience and necessity may not exercise the right of eminent domain under paragraph (1) unless the holder—

“(A) obtains all Federal and State permits required by law for the construction and operation of pipeline facilities; and

“(B) complies with all environmental conditions appended to the certificate order.

“(3) A holder of a certificate of public convenience and necessity shall be suspended from the exercise of the right of eminent domain under paragraph (1)—

“(A) if the holder requests a material amendment to the certificate, until such time as the conditions in paragraph (4) are satisfied; or

“(B) if a Federal or State permit held by the holder is vacated or remanded, until such time as—

“(i) all vacated or remanded permits are reinstated or reissued to the holder; and

“(ii) the holder complies with all environmental conditions appended to the certificate order.

“(4) A holder of a certificate of public convenience and necessity who requests a material amendment to the certificate and has the exercise of the right of eminent domain suspended under paragraph (3)(A) may not commence a new action or proceeding to exercise the right of eminent domain under paragraph (1) until such time as—

“(A) the Commission issues an amended certificate of public convenience and necessity; and

“(B) the holder—

“(i) obtains all additional Federal and State permits required by law pursuant to the amended certificate; and

“(ii) complies with all environmental conditions appended to the amended certificate order.

“(5) A holder of a certificate of public convenience and necessity may not exercise the right of eminent domain under paragraph (1) if the applicable pipe line or pipe lines, necessary land or other property, or equipment necessary to the proper operation of such pipe line or pipe lines to be constructed, operated, and maintained is attached to any facility with respect to which an order is required under section 3.”.

(b) Effective date.—The amendments made by this section shall apply—

(1) to any action or proceeding for eminent domain under section 7(h)(1) of the Natural Gas Act, as amended by this section, commencing on or after the date of enactment of this Act; and

(2) to any request for a material amendment to a certificate of public convenience and necessity occurring on or after the date of enactment of this Act.

(a) In general.—Section 111(d) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by adding at the end the following:

“(20) CONSIDERATION OF ENERGY STORAGE SYSTEMS.—Each State shall consider requiring that, as part of a supply side resource planning process, an electric utility of the State demonstrate to the State that the electric utility considered an investment in energy storage systems based on appropriate factors, including—

“(A) total costs and normalized life cycle costs;

“(B) cost effectiveness;

“(C) improved reliability;

“(D) security; and

“(E) system performance and efficiency.”.

(b) Time limitations.—Section 112(b) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) is amended by adding at the end the following:

“(7) (A) Not later than 1 year after the date of enactment of this paragraph, each State regulatory authority (with respect to each electric utility for which the State regulatory authority has ratemaking authority) and each nonregulated electric utility shall commence the consideration referred to in section 111, or set a hearing date for consideration, with respect to the standard established by paragraph (20) of section 111(d).

“(B) Not later than 2 years after the date of enactment of this paragraph, each State regulatory authority (with respect to each electric utility for which the State regulatory authority has ratemaking authority), and each nonregulated electric utility, shall complete the consideration, and shall make the determination, referred to in section 111 with respect to the standard established by paragraph (20) of section 111(d).”.

(c) Failure To comply.—Section 112(c) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(c)) is amended by adding at the end the following: “In the case of the standard established by paragraph (20) of section 111(d), the reference contained in this subsection to the date of enactment of this Act shall be deemed to be a reference to the date of enactment of such paragraph (20).”.

(d) Prior state actions.—Section 112 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622) is amended by adding at the end the following:

“(g) Prior State actions.—Subsections (b) and (c) of this section shall not apply to the standard established by paragraph (20) of section 111(d) in the case of any electric utility in a State if, before the enactment of this subsection—

“(1) the State has implemented for such utility the standard concerned (or a comparable standard);

“(2) the State regulatory authority for such State or relevant nonregulated electric utility has conducted a proceeding to consider implementation of the standard concerned (or a comparable standard) for such utility; or

“(3) the State legislature has voted on the implementation of such standard (or a comparable standard) for such utility.”.

(e) Prior and pending proceedings.—Section 124 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2634) is amended by adding at the end the following: “In the case of the standard established by paragraph (20) of section 111(d), the reference contained in this section to the date of the enactment of this Act shall be deemed to be a reference to the date of enactment of such paragraph (20).”.

To the maximum extent practicable, the Secretary of Energy shall ensure that the funding and administration of the different offices within the Grid Modernization Initiative of the Department of Energy and other programs conducting energy storage research are coordinated and streamlined.

(a) Consideration of non-Wires solutions by State regulatory authorities.—Section 111(d) of the Public Utility Regulatory Policies Act of 1978 ((16 U.S.C. 2621(d)) is further amended by adding at the end the following:

“(21) NON-WIRES SOLUTIONS.—

“(A) IN GENERAL.—Each electric utility shall implement non-wires solutions when appropriate.

“(B) DEFINITION OF NON-WIRES SOLUTION.—The term ‘non-wires solution’ means an electricity grid investment or project that uses one or more nontraditional solutions, including distributed generation, energy storage, energy efficiency, demand response, microgrids, or grid software and controls, to defer or replace the need for specific equipment upgrades or new infrastructure, such as transmission or distribution lines or transformers, at a substation or circuit level.

“(C) COST RECOVERY.—To reduce the costs to ratepayers associated with potential upgrades to transmission or distribution infrastructure, the cost of a non-wires solution implemented under subparagraph (A) shall be recovered from ratepayers in the same manner as an upgrade to transmission or distribution infrastructure would have been recovered.”.

(b) Time limitations.—Section 112(b) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) is further amended by adding at the end the following:

“(8) (A) Not later than 1 year after the date of enactment of this paragraph, each State regulatory authority (with respect to each electric utility for which the State has ratemaking authority) and each nonregulated electric utility shall commence the consideration referred to in section 111, or set a hearing date for consideration, with respect to the standard established by paragraph (21) of section 111(d).

“(B) Not later than 2 years after the date of the enactment of this paragraph, each State regulatory authority (with respect to each electric utility for which the State has ratemaking authority), and each nonregulated electric utility, shall complete the consideration, and shall make the determination, referred to in section 111 with respect to the standard established by paragraph (21) of section 111(d).”.

(c) Failure To comply.—Section 112(c) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(c)) is further amended by—

(1) striking “(b)(2)” and inserting “(b)”; and

(2) adding at the end the following: “In the case of the standard established by paragraph (21) of section 111(d), the reference contained in this subsection to the date of enactment of this Act shall be deemed to be a reference to the date of enactment of that paragraph (21).”.

(d) Prior State actions.—Section 112(d) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(d)) is amended in the matter preceding paragraph (1) by striking “(19)” and inserting “(21)”.

Section 210 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 824a–3) is amended by adding at the end the following:

“(o) Contract options for qualified facilities.—The Commission shall require that qualifying facilities have the option to enter a fixed price contract whose term is at least as long as the term on which the incumbent utility recovers invests in new generation, whether self-built or in the form of a long-term power purchase agreement.”.

(a) In general.—Section 111(d) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by adding at the end the following:

“(21) COMMUNITY SOLAR PROGRAMS.—Each electric utility shall offer a community solar program that provides all ratepayers, including low-income ratepayers, equitable and demonstrable access to such community solar program. For the purposes of this paragraph, the term ‘community solar program’ means a service provided to any electric consumer that the electric utility serves through which the value of electricity generated by a community solar facility may be used to offset charges billed to the electric consumer by the electric utility. A ‘community solar facility’ is—

“(A) a solar photovoltaic system that allocates electricity to multiple electric consumers of an electric utility;

“(B) connected to a local distribution of the electric utility;

“(C) located either on or off the property of the electric consumers; and

“(D) may be owned by an electric utility, an electric consumer, or a third party.”.

(b) Compliance.—

(1) TIME LIMITATIONS.—Section 112(b) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) is amended by adding at the end the following:

“(8) (A) Not later than 1 year after the date of enactment of this paragraph, each State regulatory authority (with respect to each electric utility for which the State has ratemaking authority) and each nonregulated electric utility shall commence consideration under section 111, or set a hearing date for consideration, with respect to the standard established by paragraph (21) of section 111(d).

“(B) Not later than 2 years after the date of enactment of this paragraph, each State regulatory authority (with respect to each electric utility for which the State has ratemaking authority), and each nonregulated electric utility shall complete the consideration and make the determination under section 111 with respect to the standard established by paragraph (21) of section 111(d).”.

(2) FAILURE TO COMPLY.—

(A) IN GENERAL.—Section 112(c) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(c)) is amended—

(i) by striking “such paragraph (14)” and all that follows through “paragraphs (16)” and inserting “such paragraph (14). In the case of the standard established by paragraph (15) of section 111(d), the reference contained in this subsection to the date of enactment of this Act shall be deemed to be a reference to the date of enactment of that paragraph (15). In the case of the standards established by paragraphs (16)”; and

(ii) by adding at the end the following: “In the case of the standard established by paragraph (21) of section 111(d), the reference contained in this subsection to the date of enactment of this Act shall be deemed to be a reference to the date of enactment of that paragraph (21).”.

(B) TECHNICAL CORRECTION.—

(i) IN GENERAL.—Section 1254(b) of the Energy Policy Act of 2005 (Public Law 109–58; 119 Stat. 971) is amended—

(I) by striking paragraph (2); and

(II) by redesignating paragraph (3) as paragraph (2).

(ii) TREATMENT.—The amendment made by paragraph (2) of section 1254(b) of the Energy Policy Act of 2005 (Public Law 109–58; 119 Stat. 971) (as in effect on the day before the date of enactment of this Act) is void, and section 112(d) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(d)) shall be in effect as if those amendments had not been enacted.

(3) PRIOR STATE ACTIONS.—

(A) IN GENERAL.—Section 112 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622) is amended by adding at the end the following:

“(h) Prior State actions.—Subsections (b) and (c) shall not apply to the standard established by paragraph (21) of section 111(d) in the case of any electric utility in a State if, before the date of enactment of this subsection—

“(1) the State has implemented for the electric utility the standard (or a comparable standard);

“(2) the State regulatory authority for the State or the relevant nonregulated electric utility has conducted a proceeding to consider implementation of the standard (or a comparable standard) for the electric utility; or

“(3) the State legislature has voted on the implementation of the standard (or a comparable standard) for the electric utility.”.

(B) CROSS-REFERENCE.—Section 124 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2634) is amended by adding at the end the following: “In the case of the standard established by paragraph (21) of section 111(d), the reference contained in this subsection to the date of enactment of this Act shall be deemed to be a reference to the date of enactment of that paragraph (21).”.

Section 609 of the Public Utility Regulatory Policies Act of 1978 (7 U.S.C. 918c) is amended—

(1) in section (a)—

(A) in paragraph (1), by striking “or municipality” and inserting “, municipality, or Indian Tribe”;

(B) in paragraph (5), by striking “10,000” and inserting “20,000”; and

(C) by adding at the end the following new paragraph:

“(6) ECONOMICALLY DISTRESSED COMMUNITY.—The term ‘economically distressed community’ means a unit of local government, municipality, or Indian Tribe—

“(A) that is located within a 75 mile radius of an electric generating unit that primarily uses coal as a fuel source; and

“(B) that is significantly impacted by the closure of such electric generating unit occurring on or after January 1, 2010, including by, as a result of such closure, experiencing—

“(i) a net labor loss at least 50 workers who lost employment directly from, or employment associated with, such electric generating unit, including an associated mine;

“(ii) a net revenue loss of over 25 percent compared to the previous fiscal year, in terms of tax revenue, lease payments, or royalties directly from or associated with such electric generating station, including an associated mine; or

“(iii) an increase in the cost of electricity for applicable electric consumers of at least 10 percent from the previous applicable calendar year.”;

(2) in subsection (b)—

(A) in paragraph (1)—

(i) by inserting “or the deployment of energy storage technologies” after “energy efficiency”; and

(ii) by striking “areas; or” and inserting “areas or economically distressed communities;”;

(B) in paragraph (2), by striking “rural areas.” and inserting “rural areas or economically distressed communities; or”; and

(C) by adding at the end the following:

“(3) refurbishing, redeveloping, or repurposing electric generating facilities that primarily consume coal as a fuel source that have recently ceased operation, or will cease operation in the near future, for manufacturing, including clean energy technologies or materials.”; and

(3) in subsection (d)—

(A) by striking “$20,000,000” and inserting “$50,000,000”; and

(B) by striking “2006 through 2012” and inserting “2022 through 2031”.

(a) In general.—The Secretary of Energy shall establish a program to provide financial assistance to eligible partnerships to carry out projects related to the modernization of the electric grid, including—

(1) projects for the deployment of technologies to improve monitoring of, advanced controls for, and prediction of performance of, a distribution system; and

(2) projects related to transmission system planning and operation.

(b) Eligible projects.—Projects for which an eligible partnership may receive financial assistance under subsection (a)—

(1) shall be designed to improve the resiliency, performance, or efficiency of the electric grid, while ensuring the continued provision of safe, secure, reliable, and affordable power;

(2) may be designed to deploy a new product or technology that could be used by customers of an electric utility; and

(3) shall demonstrate—

(A) secure integration and management of energy resources, including through distributed energy generation, combined heat and power, microgrids, energy storage, electric vehicles charging infrastructure, energy efficiency, demand response, or controllable loads; or

(B) secure integration and interoperability of communications and information technologies related to the electric grid.

(c) Cybersecurity plan.—Each project carried out with financial assistance provided under subsection (a) shall include the development of a cybersecurity plan written in accordance with guidelines developed by the Secretary of Energy.

(d) Privacy effects analysis.—Each project carried out with financial assistance provided under subsection (a) shall include a privacy effects analysis that evaluates the project in accordance with the Voluntary Code of Conduct of the Department of Energy, commonly known as the “DataGuard Energy Data Privacy Program”, or the most recent revisions to the privacy program of the Department.

(e) Definitions.—In this section:

(1) ELIGIBLE PARTNERSHIP.—The term “eligible partnership” means a partnership consisting of two or more entities, which—

(A) may include—

(i) any institution of higher education;

(ii) a National Laboratory;

(iii) a State or a local government or other public body created by or pursuant to State law;

(iv) an Indian Tribe;

(v) a Federal power marketing administration; or

(vi) an entity that develops and provides technology; and

(B) shall include at least one of any of—

(i) an electric utility;

(ii) a Regional Transmission Organization; or

(iii) an Independent System Operator.

(2) ELECTRIC UTILITY.—The term “electric utility” has the meaning given that term in section 3(22) of the Federal Power Act (16 U.S.C. 796(22)), except that such term does not include an entity described in subparagraph (B) of such section.

(3) FEDERAL POWER MARKETING ADMINISTRATION.—The term “Federal power marketing administration” means the Bonneville Power Administration, the Southeastern Power Administration, the Southwestern Power Administration, or the Western Area Power Administration.

(4) INDEPENDENT SYSTEM OPERATOR; REGIONAL TRANSMISSION ORGANIZATION.—The terms “Independent System Operator” and “Regional Transmission Organization” have the meanings given those terms in section 3 of the Federal Power Act (16 U.S.C. 796).

(5) INSTITUTION OF HIGHER EDUCATION.—The term “institution of higher education” has the meaning given that term in section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a)).

(f) Authorization of appropriations.—There is authorized to be appropriated to the Secretary of Energy to carry out this section $700,000,000 for each of fiscal years 2022 through 2031, to remain available until expended.

(a) Definitions.—In this section:

(1) HYBRID MICROGRID SYSTEM.—The term “hybrid microgrid system” means a stand-alone electrical system that—

(A) is comprised of conventional generation and at least 1 alternative energy resource; and

(B) may use grid-scale energy storage.

(2) ISOLATED COMMUNITY.—The term “isolated community” means a community that is powered by a stand-alone electric generation and distribution system without the economic and reliability benefits of connection to a regional electric grid.

(3) MICROGRID SYSTEM.—The term “microgrid system” means a stand-alone electrical system that uses grid-scale energy storage.

(4) STRATEGY.—The term “strategy” means the strategy developed pursuant to subsection (b)(2)(B).

(b) Program.—

(1) ESTABLISHMENT.—The Secretary shall establish a program to promote the development of—

(A) hybrid microgrid systems for isolated communities; and

(B) microgrid systems to increase the resilience of critical infrastructure.

(2) PHASES.—The program established under paragraph (1) shall be divided into the following phases:

(A) Phase I, which shall consist of the development of a feasibility assessment for—

(i) hybrid microgrid systems in isolated communities; and

(ii) microgrid systems to enhance the resilience of critical infrastructure.

(B) Phase II, which shall consist of the development of an implementation strategy, in accordance with paragraph (3), to promote the development of hybrid microgrid systems for isolated communities, particularly for those communities exposed to extreme weather conditions and high energy costs, including electricity, space heating and cooling, and transportation.

(C) Phase III, which shall be carried out in parallel with Phase II and consist of the development of an implementation strategy to promote the development of microgrid systems that increase the resilience of critical infrastructure.

(D) Phase IV, which shall consist of cost-shared demonstration projects, based upon the strategies developed under subparagraph (B) that include the development of physical and cybersecurity plans to take appropriate measures to protect and secure the electric grid.

(E) Phase V, which shall establish a benefits analysis plan to help inform regulators, policymakers, and industry stakeholders about the affordability, environmental and resilience benefits associated with Phases II, III, and IV.

(3) REQUIREMENTS FOR STRATEGY.—In developing the strategy under paragraph (2)(B), the Secretary shall consider—

(A) establishing future targets for the economic displacement of conventional generation using hybrid microgrid systems, including displacement of conventional generation used for electric power generation, heating and cooling, and transportation;

(B) the potential for renewable resources, including wind, solar, and hydropower, to be integrated into a hybrid microgrid system;

(C) opportunities for improving the efficiency of existing hybrid microgrid systems;

(D) the capacity of the local workforce to operate, maintain, and repair a hybrid microgrid system;

(E) opportunities to develop the capacity of the local workforce to operate, maintain, and repair a hybrid microgrid system;

(F) leveraging existing capacity within local or regional research organizations, such as organizations based at institutions of higher education, to support development of hybrid microgrid systems, including by testing novel components and systems prior to field deployment;

(G) the need for basic infrastructure to develop, deploy, and sustain a hybrid microgrid system;

(H) input of traditional knowledge from local leaders of isolated communities in the development of a hybrid microgrid system;

(I) the impact of hybrid microgrid systems on defense, homeland security, economic development, and environmental interests;

(J) opportunities to leverage existing interagency coordination efforts and recommendations for new interagency coordination efforts to minimize unnecessary overhead, mobilization, and other project costs; and

(K) any other criteria the Secretary determines appropriate.

(c) Collaboration.—The program established under subsection (b)(1) shall be carried out in collaboration with relevant stakeholders, including, as appropriate—

(1) States;

(2) Indian Tribes;

(3) regional entities and regulators;

(4) units of local government;

(5) institutions of higher education; and

(6) private sector entities.

(d) Report.—Not later than 180 days after the date of enactment of this Act, and annually thereafter until calendar year 2026, the Secretary shall submit to the Committee on Energy and Natural Resources of the Senate and the Committee on Energy and Commerce of the House of Representatives a report on the efforts to implement the program established under subsection (b)(1) and the status of the strategy developed under subsection (b)(2)(B).

(a) Establishment.—The Secretary of Energy shall establish a program to reduce the vulnerability of the electric grid to physical attack, cyber attack, electromagnetic pulse, geomagnetic disturbances, severe weather, climate change, and seismic events, including by—

(1) ensuring that large power transformers, generator step-up transformers, and other critical electric grid equipment are strategically located to ensure timely replacement of such equipment as may be necessary to restore electric grid function rapidly in the event of severe damage to the electric grid due to physical attack, cyber attack, electromagnetic pulse, geomagnetic disturbances, severe weather, climate change, or seismic events; and

(2) establishing a coordinated plan to facilitate transportation of large power transformers and other critical electric grid equipment.

(b) Transformer resilience and advanced components program.—The program established under subsection (a) shall include implementation of the Transformer Resilience and Advanced Components program to—

(1) improve large power transformers and other critical electric grid equipment by reducing their vulnerabilities; and

(2) develop, test, and deploy innovative equipment designs that are more flexible and offer greater resiliency of electric grid functions.

(c) Strategic equipment reserves.—

(1) AUTHORIZATION.—In carrying out the program established under subsection (a), the Secretary may establish one or more federally owned strategic equipment reserves, as appropriate, to ensure nationwide access to reserve equipment.

(2) CONSIDERATION.—In establishing any federally owned strategic equipment reserve, the Secretary may consider existing spare transformer and equipment programs and requirements established by the private sector, regional transmission operators, independent system operators, and State regulatory authorities.

(d) Consultation.—The program established under subsection (a) shall be carried out in consultation with the Federal Energy Regulatory Commission, the Electricity Subsector Coordinating Council, the Electric Reliability Organization, and owners and operators of critical electric infrastructure and defense and military installations.

(e) Authorization of appropriations.—There are authorized to be appropriated to carry out this section $75,000,000 for each of fiscal years 2022 through 2031.

(a) Program.—The Secretary of Energy shall conduct a program to provide information and technical assistance to State, local, Tribal, and territorial governments and relevant land and infrastructure asset owners, to support the redevelopment of sites that have, or previously had, one or more retired fossil fuel-powered electric generating units, including redevelopment of such sites through—

(1) deployment of zero-emissions electricity, including electricity generated from wind, solar, nuclear, hydropower, and geothermal energy;

(2) deployment of energy storage resources;

(3) use of existing and underutilized electric transmission and distribution infrastructure associated with such sites; and

(4) economic development opportunities for energy-intensive industries, including data centers.

(b) Public inventory.—In carrying out the program conducted under subsection (a), the Secretary may inventory and characterize sites described in such subsection, including the energy and security infrastructure of such sites, and make such inventory and characterizations available to the public.

(c) Authorization of appropriations.—There is authorized to be appropriated to carry out this section $10,000,000 for each of fiscal years 2022 through 2031.

Section 104 of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9604) is amended by adding at the end the following:

“(l) Repowering communities grant program.—

“(1) ESTABLISHMENT.—The Administrator shall establish a program to provide grants to eligible entities to carry out inventory, characterization, assessment, planning, feasibility analysis, design, or remediation activities at sites that have or previously had 1 or more retired fossil fuel-powered electric generating units.

“(2) PRIORITIZATION OF GRANTS.—The Administrator shall prioritize awarding grants to eligible entities who intend to develop or deploy clean energy projects at sites described in paragraph (1).

“(3) DEFINITIONS.—In this subsection:

“(A) CLEAN ENERGY PROJECT.—The term ‘clean energy project’ means a project that—

“(i) is anticipated to generate electricity without emitting greenhouse gases, such as wind, solar, nuclear, hydropower, and geothermal energy; or

“(ii) stores energy.

“(B) ELIGIBLE ENTITY.—The term ‘eligible entity’ means—

“(i) a general purpose unit of local government;

“(ii) a land clearance authority or other quasi-governmental entity that operates under the supervision and control of or as an agent of a general purpose unit of local government;

“(iii) a government entity created by a State legislature;

“(iv) a regional council or group of general purpose units of local government;

“(v) a redevelopment agency that is chartered or otherwise sanctioned by a State;

“(vi) a State;

“(vii) an Indian Tribe other than in Alaska;

“(viii) an Alaska Native Regional Corporation and an Alaska Native Village Corporation as those terms are defined in the Alaska Native Claims Settlement Act and the Metlakatla Indian community;

“(ix) an organization described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from taxation under section 501(a) of that Code;

“(x) a limited liability corporation in which all managing members are organizations described in clause (ix) or limited liability corporations whose sole members are organizations described in clause (ix);

“(xi) a limited partnership in which all general partners are organizations described in clause (ix) or limited liability corporations whose sole members are organizations described in clause (ix); or

“(xii) a qualified community development entity (as defined in section 45D(c)(1) of the Internal Revenue Code of 1986).

“(4) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to carry out this section $10,000,000, to remain available until expended, for each of fiscal years 2022 through 2031.”.

(a) Dam safety conditions.—Section 10 of the Federal Power Act (16 U.S.C. 803) is amended by adding at the end the following:

“(k) That the dam and other project works meet the Commission’s dam safety requirements and that the licensee shall continue to manage, operate, and maintain the dam and other project works in a manner that ensures dam safety and public safety under the operating conditions of the license.”.

(b) Dam safety requirements.—Section 15 of the Federal Power Act (16 U.S.C. 808) is amended by adding at the end the following:

“(g) The Commission may issue a new license under this section only if the Commission determines that the dam and other project works covered by the license meet the Commission’s dam safety requirements and that the licensee can continue to manage, operate, and maintain the dam and other project works in a manner that ensures dam safety and public safety under the operating conditions of the new license.”.

(c) Viability procedures.—The Federal Energy Regulatory Commission shall establish procedures to assess the financial viability of an applicant for a license under the Federal Power Act to meet applicable dam safety requirements and to operate the dam and project works under the license.

(d) FERC dam safety technical conference with States.—

(1) TECHNICAL CONFERENCE.—Not later than April 1, 2022, the Federal Energy Regulatory Commission, acting through the Office of Energy Projects, shall hold a technical conference with the States to discuss and provide information on—

(A) dam maintenance and repair;

(B) Risk Informed Decision Making (RIDM);

(C) climate and hydrological regional changes that may affect the structural integrity of dams; and

(D) high hazard dams.

(2) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to carry out this subsection $1,000,000 for fiscal year 2022.

(3) STATE DEFINED.—In this subsection, the term “State” has the meaning given such term in section 3 of the Federal Power Act (16 U.S.C. 796).

(e) Required dam safety communications between FERC and States.—

(1) IN GENERAL.—The Commission, acting through the Office of Energy Projects, shall notify a State within which a project is located when—

(A) the Commission issues a finding, following a dam safety inspection, that requires the licensee for such project to take actions to repair the dam and other project works that are the subject of such finding;

(B) after a period of 5 years starting on the date a finding under subparagraph (A) is issued, the licensee has failed to take actions to repair the dam and other project works, as required by such finding; and

(C) the Commission initiates a non-compliance proceeding or otherwise takes steps to revoke a license issued under section 4 of the Federal Power Act (16 U.S.C. 797) due to the failure of a licensee to take actions to repair a dam and other project works.

(2) NOTICE UPON REVOCATION, SURRENDER, OR IMPLIED SURRENDER OF A LICENSE.—If the Commission issues an order to revoke a license or approve the surrender or implied surrender of a license under the Federal Power Act (16 U.S.C. 792 et seq.), the Commission shall provide to the State within which the project that relates to such license is located—

(A) all records pertaining to the structure and operation of the applicable dam and other project works, including, as applicable, any dam safety inspection reports by independent consultants, specifications for required repairs or maintenance of such dam and other project works that have not been completed, and estimates of the costs for such repairs or maintenance;

(B) all records documenting the history of maintenance or repair work for the applicable dam and other project works;

(C) information on the age of the dam and other project works and the hazard classification of the dam and other project works;

(D) the most recent assessment of the condition of the dam and other project works by the Commission;

(E) as applicable, the most recent hydrologic information used to determine the potential maximum flood for the dam and other project works; and

(F) the results of the most recent risk assessment completed on the dam and other project works.

(3) DEFINITION.—In this subsection:

(A) COMMISSION.—The term “Commission” means the Federal Energy Regulatory Commission.

(B) LICENSEE.—The term “licensee” has the meaning given such term in section 3 of the Federal Power Act (16 U.S.C. 796).

(C) PROJECT.—The term “project” has the meaning given such term in section 3 of the Federal Power Act (16 U.S.C. 796).

(a) In general.—The Secretary of Energy shall establish and carry out a program to provide grants to eligible entities.

(b) Use of funds.—An eligible entity may use a grant provided under the program established pursuant to subsection (a) to—

(1) obtain technical assistance to—

(A) upgrade building codes and standards for resiliency to climate change hazards (including wildfires, flooding, sea level rise, landslides, drought, storms, temperature extremes, and other extreme weather events);

(B) develop a FEMA Hazard Mitigation Plan to identify and overcome known climate change hazards to critical community infrastructure; or

(C) conduct a needs assessment of prospective clean energy microgrid projects and, as applicable, design prospective clean energy microgrids, including assistance to address permitting and siting challenges, understand and facilitate financing options, and understand the technical characteristics of clean energy microgrids;

(2) provide community outreach and collaborative planning with respect to a prospective project described in paragraph (3); or

(3) carry out a project to develop and construct—

(A) a clean energy microgrid that supports critical community infrastructure; or

(B) a clean energy microgrid for residences of medical baseline customers.

(c) Priority.—

(1) IN GENERAL.—In providing grants under the program established pursuant to subsection (a), the Secretary of Energy shall give priority to an eligible entity that proposes to use a grant to obtain technical assistance described in subsection (b)(1), provide outreach described in subsection (b)(2), or carry out a project described in subsection (b)(3), that will benefit an environmental justice community.

(2) TECHNICAL ASSISTANCE AND COMMUNITY OUTREACH GRANTS.—After priority given under paragraph (1), in providing grants to obtain technical assistance described in subsection (b)(1) or provide outreach described in subsection (b)(2), the Secretary of Energy shall give priority to an eligible entity proposing to obtain technical assistance or provide outreach that the Secretary of Energy determines will further the development of clean energy microgrids that are community-owned energy systems.

(3) CLEAN ENERGY MICROGRID GRANTS.—After priority given under paragraph (1), in providing grants under the program established pursuant to subsection (a) for projects described in subsection (b)(3), the Secretary of Energy shall give priority to an eligible entity that—

(A) proposes to develop and construct a clean energy microgrid that, in comparison to other clean energy microgrids for which grants are sought under such program, will result in the greatest reduction—

(i) of greenhouse gas emissions;

(ii) of emissions of criteria air pollutants;

(iii) in public health disparities in communities experiencing a disproportionate level of air pollution; or

(iv) in the energy cost burden for communities;

(B) proposes to develop and construct a clean energy microgrid that is a community-owned energy system;

(C) proposes to develop and construct a clean energy microgrid that, in comparison to other clean energy microgrids for which grants are sought under such program, will provide the greatest amount of resiliency benefits to a jurisdiction in which the microgrid is located;

(D) proposes to develop and construct a clean energy microgrid that minimizes land use impacts by—

(i) siting sources of clean energy within the already-built environment, including over rooftops and parking lots;

(ii) siting sources of clean energy on existing brownfield sites or contaminated sites;

(iii) co-locating sources of clean energy on agricultural lands or over reservoirs; or

(iv) siting sources of clean energy on compatible lands;

(E) proposes to, in developing and constructing a clean energy microgrid, utilize or involve small businesses or nonprofits that primarily operate or are located within environmental justice communities, particularly those that are women-owned and operated or minority-owned and operated;

(F) has previously received a grant to obtain technical assistance under such program;

(G) imposes registered apprentice utilization requirements on projects, provided that such requirements comply with the apprentice to journey worker ratios established by the Department of Labor or the applicable State Apprenticeship Agency; or

(H) proposes to develop and construct a clean energy microgrid in an area designated nonattainment and classified as an Extreme Area or Severe Area for one or more criteria air pollutants.

(d) Educational outreach program.—

(1) IN GENERAL.—Not later than 90 days after funds are made available to carry out this section, the Secretary of Energy shall develop and carry out an educational outreach program to inform eligible entities about the program established pursuant to subsection (a).

(2) CONTRACTS.—The Secretary of Energy may enter into third-party contracts to implement the educational outreach program under paragraph (1). In entering into contracts pursuant to this paragraph, the Secretary shall prioritize entering into contracts with women-owned and operated or minority-owned and operated entities.

(3) PRIORITY.—The educational outreach program under paragraph (1) shall prioritize—

(A) providing information on the program established pursuant to subsection (a) to eligible entities that serve an environmental justice community and to environmental justice communities; and

(B) promoting public understanding of the community benefits of clean energy microgrids for critical community infrastructure.

(e) Cost share.—

(1) IN GENERAL.—Except as provided in paragraph (2), the Federal share of the cost of technical assistance, outreach, or a project for which a grant is provided pursuant to the program established pursuant to subsection (a) shall not exceed 60 percent of such cost.

(2) ENVIRONMENTAL JUSTICE COMMUNITY.—The Federal share of the cost of technical assistance that is obtained for, outreach that is provided to, or a project that is carried out in, an environmental justice community, and for which a grant is provided pursuant to the program established pursuant to subsection (a) shall not exceed 90 percent of such cost.

(f) Limitation on amount.—The amount of a grant provided to an eligible entity under this section to carry out a project described in subsection (b)(3) may not exceed $10,000,000.

(g) Use of American iron, steel, and manufactured goods.—

(1) No funds authorized under this section shall be made available with respect to a project unless all of the iron, steel, and manufactured goods used in the project are produced in the United States.

(2) Paragraph (1) shall not apply in any case or category of cases in which the Secretary of Energy finds that—

(A) applying paragraph (1) would be inconsistent with the public interest;

(B) iron, steel, and the relevant manufactured goods are not produced in the United States in sufficient and reasonably available quantities and of a satisfactory quality; or

(C) inclusion of iron, steel, and manufactured goods produced in the United States will increase the cost of the overall project by more than 25 percent.

(3) If the Secretary of Energy receives a request for a waiver under this subsection, the Secretary shall make available to the public on an informal basis a copy of the request and information available to the Secretary concerning the request, and shall allow for informal public input on the request for at least 15 days prior to making a finding based on the request. The Secretary shall make the request and accompanying information available by electronic means, including on the official public website of the Department of Energy.

(4) This subsection shall be applied in a manner consistent with the United States obligations under international agreements.

(h) Prevailing wages.—All laborers and mechanics employed by contractors or subcontractors in the performance of construction, alteration, or repair work assisted, in whole or in part, by a grant under this section shall be paid wages at rates not less than those prevailing on similar construction in the locality as determined by the Secretary of Labor in accordance with subchapter IV of chapter 31 of title 40, United States Code. With respect to the labor standards 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.

(i) Project labor.—An eligible entity that uses a grant provided under this section to construct a clean energy microgrid shall ensure, to the greatest extent practicable, that any subgrantee of such eligible entity, and any subgrantee thereof, that carries out such construction employs at least 40 percent of laborers or mechanics for such construction that are individuals who—

(1) are domiciled, if the applicable construction area is—

(A) a major urban area, not further than 15 miles from such construction area; or

(B) not a major urban area, not further than 50 miles from such construction area;

(2) are displaced and unemployed energy workers;

(3) are members of the Armed Forces serving on active duty, separated from active duty, or retired from active duty;

(4) have been incarcerated or served time in a juvenile or adult detention or correctional facility, or been placed on probation, community supervision, or in a diversion scheme;

(5) have a disability;

(6) are homeless;

(7) are receiving public assistance;

(8) lack a general education diploma or high school diploma;

(9) are emancipated from the foster care system;

(10) reside or work in an environmental justice community; or

(11) are registered apprentices with fewer than 15 percent of the required graduating apprentice hours in a program.

(j) Reports.—The Secretary of Energy shall submit to Congress, and make available on the public website of the Department of Energy, an annual report on the program established pursuant to subsection (a) that includes, with respect to the previous year—

(1) the number of grants provided;

(2) the total dollar amount of all grants provided;

(3) a list of grant disbursements by State;

(4) for each grant provided—

(A) a description of the technical assistance obtained, outreach provided, or project carried out with grants funds; and

(B) whether the grant is provided to obtain technical assistance, provide outreach, or carry out a project with respect to an environmental justice community; and

(5) for each grant provided to carry out a clean energy microgrid project—

(A) employment data for such project, including the number of jobs created and what percent of laborers and mechanics hired for such project meet the criteria under subsection (i);

(B) the greenhouse gas and criteria air pollutant reduction impacts for such project;

(C) the public health benefits from such project; and

(D) the reduced energy cost burden from such project.

(k) Funding.—

(1) AUTHORIZATION OF APPROPRIATIONS.—For each of fiscal years 2022 through 2031, there is authorized to be appropriated—

(A) $50,000,000 for grants for technical assistance described in subsection (b)(1) and outreach described in subsection (b)(2); and

(B) $1,500,000,000 for grants for projects described in subsection (b)(3).

(2) COMMUNITY-OWNED ENERGY SYSTEMS.—To the maximum extent practicable, not less than 10 percent of the amount appropriated under paragraph (1)(B) for any fiscal year shall be used to provide grants for projects to develop and construct clean energy microgrids that are community-owned energy systems.

(3) ADMINISTRATIVE EXPENSES.—

(A) TECHNICAL ASSISTANCE AND OUTREACH.—The Secretary may use not more than 2 percent of the amount appropriated for any fiscal year under paragraph (1)(A) for administrative expenses.

(B) CLEAN ENERGY MICROGRID PROJECTS.—The Secretary may use not more than 2 percent of the amount appropriated for any fiscal year under paragraph (1)(B) for administrative expenses, including expenses for carrying out the educational outreach program under subsection (d).

(l) Definitions.—In this section:

(1) CLEAN ENERGY.—The term “clean energy” means electric energy generated from solar, wind, geothermal, existing hydropower, micro-hydropower, hydrokinetic, or hydrogen fuel cells.

(2) COMMUNITY OF COLOR.—The term “community of color” has the meaning given that term in section 601.

(3) COMMUNITY-OWNED ENERGY SYSTEM.—The term “community-owned energy system” means an energy system owned—

(A) by the local government where the system is located;

(B) by a nonprofit organization that is based in the local jurisdiction where the energy system is located;

(C) collectively, by community members; or

(D) by a worker-owned or community-owned for-profit entity.

(4) COMPATIBLE LAND.—The term “compatible land” means land that is at least 5 miles away from existing protected areas and within 3 miles of existing transmission infrastructure.

(5) CRITICAL COMMUNITY INFRASTRUCTURE.—The term “critical community infrastructure” means infrastructure that is necessary to providing vital community and individual functions, including—

(A) schools;

(B) town halls;

(C) public safety facilities;

(D) hospitals;

(E) health clinics;

(F) community centers;

(G) community nonprofit facilities providing essential services;

(H) libraries;

(I) grocery stores;

(J) emergency management facilities;

(K) water systems;

(L) homeless shelters;

(M) senior housing; and

(N) public or affordable housing.

(6) ELIGIBLE ENTITY.—The term “eligible entity” means—

(A) a State, territory of the United States, or Tribal agency;

(B) a local government or political subdivision of a State, including a municipally owned electric utility and an agency, authority, corporation, or instrumentality of a State or Indian Tribe;

(C) an electric utility;

(D) a nonprofit organization; or

(E) a partnership between—

(i) a private entity, or a nonprofit organization, that owns critical community infrastructure; and

(ii) a State, territory of the United States, Tribal agency, or local government.

(7) ENVIRONMENTAL JUSTICE COMMUNITY.—The term “environmental justice community” has the meaning given that term in section 601.

(8) LOW-INCOME COMMUNITY.—The term “low-income community” means any census block group in which 30 percent or more of the population are individuals with an annual household income equal to, or less than, the greater of—

(A) an amount equal to 80 percent of the median income of the area in which the household is located, as reported by the Department of Housing and Urban Development; and

(B) 200 percent of the Federal poverty line.

(9) MAJOR URBAN AREA.—The term “major urban area” means a metropolitan statistical area within the United States with an estimated population that is greater than or equal to 1,500,000.

(10) MEDICAL BASELINE CUSTOMER.—The term “medical baseline customer” means a customer of an electric utility with special energy needs due to a medical condition, including energy needs for—

(A) a motorized wheelchair;

(B) a ventilator;

(C) a dialysis machine;

(D) an apnea monitor;

(E) an electrostatic nebulizer;

(F) a respirator;

(G) medication requiring refrigeration; and

(H) for a customer with a vulnerable respiratory system, an air cleaning system.

(11) MICROGRID.—The term “microgrid” means an interconnected system of loads and clean energy resources (including distributed energy resources, energy storage, demand response tools, and other management, forecasting, and analytical tools) which—

(A) is appropriately sized to meet the critical needs of its customers;

(B) is contained within a clearly defined electrical boundary and has the ability to operate as a single and controllable entity;

(C) has the ability to—

(i) connect to, disconnect from, or run in parallel with the applicable grid region; or

(ii) be managed and isolated from the applicable grid region in order to withstand larger disturbances and maintain the supply of electricity to a connected location;

(D) has no point of interconnection to the applicable grid region with a throughput capacity in excess of 20 megawatts; and

(E) can connect to one building or multiple interconnected buildings.

(12) MICRO-HYDROPOWER.—The term “micro-hydropower” means hydropower that produces no more than 100 kilowatts of electricity using the natural flow of water.

(13) PRODUCED IN THE UNITED STATES.—The term “produced in the United States” means, in the case of iron or steel, that all manufacturing processes, including the application of a coating, occur in the United States.

(14) REGISTERED APPRENTICE.—The term “registered apprentice” means a person in an apprenticeship program that is registered with, and approved by, the United States Department of Labor or a State Apprenticeship Agency in accordance with parts 29 and 30 of title 29, Code of Federal Regulations (as in effect on January 1, 2020).

(15) SMALL BUSINESS.—The term “small business” has the meaning given the term “small business concern” under section 3 of the Small Business Act (15 U.S.C. 632).

(16) TRIBAL AND INDIGENOUS COMMUNITY.—The term “Tribal and indigenous community” means a population of people who are members of—

(A) a federally recognized Indian Tribe;

(B) a State-recognized Indian Tribe;

(C) an Alaska Native or Native Hawaiian community or organization; or

(D) any other community of indigenous people located in a State.

(a) Definitions.—In this section:

(1) COMBINED HEAT AND POWER SYSTEM.—The term “combined heat and power system” means generation of electric energy and heat in a single, integrated system that meets the efficiency criteria in clauses (ii) and (iii) of section 48(c)(3)(A) of the Internal Revenue Code of 1986, under which heat that is conventionally rejected is recovered and used to meet thermal energy requirements.

(2) DEMAND RESPONSE.—The term “demand response” means changes in electric usage by electric utility customers from the normal consumption patterns of the customers in response to—

(A) changes in the price of electricity over time; or

(B) incentive payments designed to induce lower electricity use at times of high wholesale market prices or when system reliability is jeopardized.

(3) DISTRIBUTED ENERGY.—The term “distributed energy” means energy sources and systems that—

(A) produce electric or thermal energy close to the point of use using renewable energy resources or waste thermal energy;

(B) generate electricity using a combined heat and power system;

(C) distribute electricity in microgrids;

(D) store electric or thermal energy; or

(E) distribute thermal energy or transfer thermal energy to building heating and cooling systems through a district energy system.

(4) DISTRICT ENERGY SYSTEM.—The term “district energy system” means a system that provides thermal energy to buildings and other energy consumers from one or more plants to individual buildings to provide space heating, air conditioning, domestic hot water, industrial process energy, and other end uses.

(5) ISLANDING.—The term “islanding” means a distributed generator or energy storage device continuing to power a location in the absence of electric power from the primary source.

(6) LOAN.—The term “loan” has the meaning given the term “direct loan” in section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a).

(7) MICROGRID.—The term “microgrid” means an integrated energy system consisting of interconnected loads and distributed energy resources, including generators and energy storage devices, within clearly defined electrical boundaries that—

(A) acts as a single controllable entity with respect to the grid; and

(B) can connect and disconnect from the grid to operate in both grid-connected mode and island mode.

(8) RENEWABLE ENERGY RESOURCE.—The term “renewable energy resource” includes—

(A) biomass;

(B) geothermal energy;

(C) hydropower;

(D) landfill gas;

(E) municipal solid waste;

(F) ocean (including tidal, wave, current, and thermal) energy;

(G) organic waste;

(H) photosynthetic processes;

(I) photovoltaic energy;

(J) solar energy; and

(K) wind.

(9) RENEWABLE THERMAL ENERGY.—The term “renewable thermal energy” means heating or cooling energy derived from a renewable energy resource.

(10) SECRETARY.—The term “Secretary” means the Secretary of Energy.

(11) THERMAL ENERGY.—The term “thermal energy” means—

(A) heating energy in the form of hot water or steam that is used to provide space heating, domestic hot water, or process heat; or

(B) cooling energy in the form of chilled water, ice, or other media that is used to provide air conditioning, or process cooling.

(12) WASTE THERMAL ENERGY.—The term “waste thermal energy” means energy that—

(A) is contained in—

(i) exhaust gases, exhaust steam, condenser water, jacket cooling heat, or lubricating oil in power generation systems;

(ii) exhaust heat, hot liquids, or flared gas from any industrial process;

(iii) waste gas or industrial tail gas that would otherwise be flared, incinerated, or vented;

(iv) a pressure drop in any gas, excluding any pressure drop to a condenser that subsequently vents the resulting heat;

(v) condenser water from chilled water or refrigeration plants; or

(vi) any other form of waste energy, as determined by the Secretary; and

(B) (i) in the case of an existing facility, is not being used; or

(ii) in the case of a new facility, is not conventionally used in comparable systems.

(b) Distributed energy loan program.—

(1) LOAN PROGRAM.—

(A) IN GENERAL.—Subject to the provisions of this paragraph and paragraphs (2) and (3), the Secretary shall establish a program to provide to eligible entities—

(i) loans for the deployment of distributed energy systems in a specific project; and

(ii) loans to provide funding for programs to finance the deployment of multiple distributed energy systems through a revolving loan fund, credit enhancement program, or other financial assistance program.

(B) ELIGIBILITY.—Entities eligible to receive a loan under subparagraph (A) include—

(i) a State, territory, or possession of the United States;

(ii) a State energy office;

(iii) a tribal organization (as defined in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5304));

(iv) an institution of higher education (as defined in section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001)); and

(v) an electric utility, including—

(I) a rural electric cooperative;

(II) a municipally owned electric utility; and

(III) an investor-owned utility.

(C) SELECTION REQUIREMENTS.—In selecting eligible entities to receive loans under this subsection, the Secretary shall, to the maximum extent practicable, ensure—

(i) regional diversity among eligible entities to receive loans under this section, including participation by rural States and small States; and

(ii) that specific projects selected for loans—

(I) expand on the existing technology deployment program of the Department of Energy; and

(II) are designed to achieve one or more of the objectives described in subparagraph (D).

(D) OBJECTIVES.—Each deployment selected for a loan under subparagraph (A) shall promote one or more of the following objectives:

(i) Improved security and resiliency of energy supply in the event of disruptions caused by extreme weather events, grid equipment or software failure, or terrorist acts.

(ii) Implementation of distributed energy in order to increase use of local renewable energy resources and waste thermal energy sources.

(iii) Enhanced feasibility of microgrids, demand response, or islanding.

(iv) Enhanced management of peak loads for consumers and the grid.

(v) Enhanced reliability in rural areas, including high energy cost rural areas.

(E) RESTRICTIONS ON USE OF FUNDS.—Any eligible entity that receives a loan under subparagraph (A) may only use the loan to fund programs relating to the deployment of distributed energy systems.

(2) LOAN TERMS AND CONDITIONS.—

(A) TERMS AND CONDITIONS.—Notwithstanding any other provision of law, in providing a loan under this subsection, the Secretary shall provide the loan on such terms and conditions as the Secretary determines, after consultation with the Secretary of the Treasury, in accordance with this subsection.

(B) SPECIFIC APPROPRIATION.—No loan shall be made unless an appropriation for the full amount of the loan has been specifically provided for that purpose.

(C) REPAYMENT.—No loan shall be made unless the Secretary determines that there is reasonable prospect of repayment of the principal and interest by the borrower of the loan.

(D) INTEREST RATE.—A loan provided under this section shall bear interest at a fixed rate that is equal or approximately equal, in the determination of the Secretary, to the interest rate for Treasury securities of comparable maturity.

(E) TERM.—The term of the loan shall require full repayment over a period not to exceed the lesser of—

(i) 20 years; or

(ii) 90 percent of the projected useful life of the physical asset to be financed by the loan (as determined by the Secretary).

(F) USE OF PAYMENTS.—Payments of principal and interest on the loan shall—

(i) be retained by the Secretary to support energy research and development activities; and

(ii) remain available until expended, subject to such conditions as are contained in annual appropriations Acts.

(G) NO PENALTY ON EARLY REPAYMENT.—The Secretary may not assess any penalty for early repayment of a loan provided under this subsection.

(H) RETURN OF UNUSED PORTION.—In order to receive a loan under this subsection, an eligible entity shall agree to return to the general fund of the Treasury any portion of the loan amount that is unused by the eligible entity within a reasonable period of time after the date of the disbursement of the loan, as determined by the Secretary.

(I) COMPARABLE WAGE RATES.—Each laborer and mechanic employed by a contractor or subcontractor in performance of construction work financed, in whole or in part, by the loan shall be paid wages at rates not less than the rates prevailing on similar construction in the locality as determined by the Secretary of Labor in accordance with subchapter IV of chapter 31 of title 40, United States Code.

(3) RULES AND PROCEDURES; DISBURSEMENT OF LOANS.—

(A) RULES AND PROCEDURES.—Not later than 180 days after the date of enactment of this Act, the Secretary shall adopt rules and procedures for carrying out the loan program under paragraph (1).

(B) DISBURSEMENT OF LOANS.—Not later than 1 year after the date on which the rules and procedures under subparagraph (A) are established, the Secretary shall disburse the initial loans provided under this subsection.

(4) REPORTS.—Not later than 2 years after the date of receipt of the loan, and annually thereafter for the term of the loan, an eligible entity that receives a loan under this subsection shall submit to the Secretary a report describing the performance of each program and activity carried out using the loan, including itemized loan performance data.

(5) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated to carry out this subsection such sums as are necessary.

(c) Technical assistance and grant program.—

(1) ESTABLISHMENT.—

(A) IN GENERAL.—The Secretary shall establish a technical assistance and grant program (referred to in this subsection as the “program”)—

(i) to disseminate information and provide technical assistance directly to eligible entities so the eligible entities can identify, evaluate, plan, and design distributed energy systems; and

(ii) to make grants to eligible entities so that the eligible entities may contract to obtain technical assistance to identify, evaluate, plan, and design distributed energy systems.

(B) TECHNICAL ASSISTANCE.—The technical assistance described in subparagraph (A) shall include assistance with one or more of the following activities relating to distributed energy systems:

(i) Identification of opportunities to use distributed energy systems.

(ii) Assessment of technical and economic characteristics.

(iii) Utility interconnection.

(iv) Permitting and siting issues.

(v) Business planning and financial analysis.

(vi) Engineering design.

(C) INFORMATION DISSEMINATION.—The information disseminated under subparagraph (A)(i) shall include—

(i) information relating to the topics described in subparagraph (B), including case studies of successful examples;

(ii) computer software and databases for assessment, design, and operation and maintenance of distributed energy systems; and

(iii) public databases that track the operation and deployment of existing and planned distributed energy systems.

(2) ELIGIBILITY.—Any nonprofit or for-profit entity shall be eligible to receive technical assistance and grants under the program.

(3) APPLICATIONS.—

(A) IN GENERAL.—An eligible entity desiring technical assistance or grants under the program shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require.

(B) APPLICATION PROCESS.—The Secretary shall seek applications for technical assistance and grants under the program—

(i) on a competitive basis; and

(ii) on a periodic basis, but not less frequently than once every 12 months.

(C) PRIORITIES.—In selecting eligible entities for technical assistance and grants under the program, the Secretary shall give priority to eligible entities with projects that have the greatest potential for—

(i) facilitating the use of renewable energy resources;

(ii) strengthening the reliability and resiliency of energy infrastructure to the impact of extreme weather events, power grid failures, and interruptions in supply of fossil fuels;

(iii) improving the feasibility of microgrids or islanding, particularly in rural areas, including high energy cost rural areas;

(iv) minimizing environmental impact, including regulated air pollutants and greenhouse gas emissions; and

(v) maximizing local job creation.

(4) GRANTS.—On application by an eligible entity, the Secretary may award grants to the eligible entity to provide funds to cover not more than—

(A) 100 percent of the costs of the initial assessment to identify opportunities;

(B) 75 percent of the cost of feasibility studies to assess the potential for the implementation;

(C) 60 percent of the cost of guidance on overcoming barriers to implementation, including financial, contracting, siting, and permitting issues; and

(D) 45 percent of the cost of detailed engineering.

(5) RULES AND PROCEDURES.—

(A) RULES.—Not later than 180 days after the date of enactment of this Act, the Secretary shall adopt rules and procedures for carrying out the program.

(B) GRANTS.—Not later than 120 days after the date of issuance of the rules and procedures for the program, the Secretary shall issue grants under this subsection.

(6) REPORTS.—The Secretary shall submit to Congress and make available to the public—

(A) not less frequently than once every 2 years, a report describing the performance of the program under this subsection, including a synthesis and analysis of the information provided in the reports submitted to the Secretary under subsection (b)(4); and

(B) on termination of the program under this subsection, an assessment of the success of, and education provided by, the measures carried out by eligible entities during the term of the program.

(7) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated to carry out this subsection $250,000,000 for the period of fiscal years 2022 through 2031, to remain available until expended.

(a) Definitions.—In this section:

(1) BENEFICIARY.—The term “beneficiary” means a low-income household or a low-income household in an underserved area.

(2) COMMUNITY SOLAR FACILITY.—The term “community solar facility” means a solar generating facility that—

(A) through a voluntary program, has multiple subscribers that receive financial benefits that are directly attributable to the facility;

(B) has a nameplate rating of 5 megawatts AC or less; and

(C) is located in the utility distribution service territory of subscribers.

(3) COMMUNITY SOLAR SUBSCRIPTION.—The term “community solar subscription” means a share in the capacity, or a proportional interest in the electricity generation, of a community solar facility.

(4) COVERED FACILITY.—The term “covered facility” means—

(A) a community solar facility—

(i) that is located in an underserved area; or

(ii) at least 50 percent of the capacity of which is reserved for low-income households;

(B) a solar generating facility located at a residence of a low-income household; or

(C) a solar generating facility located at a multi-family affordable housing complex.

(5) COVERED STATE.—The term “covered State” means a State with processes in place to ensure that covered facilities deliver financial benefits to low-income households.

(6) ELIGIBLE ENTITY.—The term “eligible entity” means—

(A) a nonprofit organization that provides services to low-income households or multi-family affordable housing complexes;

(B) a developer, owner, or operator of a community solar facility that reserves a portion of the capacity of the facility for subscribers who are members of low-income households or for low-income households that otherwise financially benefit from the facility;

(C) a covered State, or political subdivision thereof;

(D) an Indian Tribe or a tribally owned electric utility;

(E) a Native Hawaiian community-based organization;

(F) any other national or regional entity that has experience developing or installing solar generating facilities for low-income households that maximize financial benefits to those households; and

(G) an electric cooperative or municipal electric utility (as such terms are defined in section 3 of the Federal Power Act).

(7) ELIGIBLE INSTALLATION PROJECT.—The term “eligible installation project” means a project to install a covered facility in a covered State.

(8) ELIGIBLE PLANNING PROJECT.—The term “eligible planning project” means a project to carry out pre-installation activities for the development of a covered facility in a covered State.

(9) ELIGIBLE PROJECT.—The term “eligible project” means—

(A) an eligible planning project; or

(B) an eligible installation project.

(10) FEASIBILITY STUDY.—The term “feasibility study” means any activity to determine the feasibility of a specific solar generating facility, including a customer interest assessment and a siting assessment, as determined by the Secretary.

(11) INDIAN TRIBE.—The term “Indian Tribe” means any Indian Tribe, band, nation, or other organized group or community, including any Alaska Native village, Regional Corporation, or Village Corporation (as defined in, or established pursuant to, the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.)), that is recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians.

(12) INTERCONNECTION SERVICE.—The term “interconnection service” has the meaning given such term in section 111(d)(15) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)(15)).

(13) LOW-INCOME HOUSEHOLD.—The term “low-income household” means that income in relation to family size which—

(A) is at or below 200 percent of the poverty level determined in accordance with criteria established by the Director of the Office of Management and Budget, except that the Secretary may establish a higher level if the Secretary determines that such a higher level is necessary to carry out the purposes of this section;

(B) is the basis on which cash assistance payments have been paid during the preceding 12-month period under titles IV and XVI of the Social Security Act (42 U.S.C. 601 et seq., 1381 et seq.) or applicable State or local law; or

(C) if a State elects, is the basis for eligibility for assistance under the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621 et seq.), provided that such basis is at least 200 percent of the poverty level determined in accordance with criteria established by the Director of the Office of Management and Budget.

(14) MULTI-FAMILY AFFORDABLE HOUSING COMPLEX.—The term “multi-family affordable housing complex” means any federally subsidized affordable housing complex in which at least 50 percent of the units are reserved for low-income households.

(15) NATIVE HAWAIIAN COMMUNITY-BASED ORGANIZATION.—The term “Native Hawaiian community-based organization” means any organization that is composed primarily of Native Hawaiians from a specific community and that assists in the social, cultural, and educational development of Native Hawaiians in that community.

(16) PROGRAM.—The term “program” means the program established under subsection (b).

(17) SECRETARY.—The term “Secretary” means the Secretary of Energy.

(18) SOLAR GENERATING FACILITY.—The term “solar generating facility” means—

(A) a generator that creates electricity from light photons; and

(B) the accompanying hardware enabling that electricity to flow—

(i) onto the electric grid;

(ii) into a facility or structure; or

(iii) into an energy storage device.

(19) STATE.—The term “State” means each of the 50 States, the District of Columbia, Guam, the Commonwealth of Puerto Rico, the Northern Mariana Islands, the Virgin Islands, and American Samoa.

(20) SUBSCRIBER.—The term “subscriber” means a person who—

(A) owns a community solar subscription, or an equivalent unit or share of the capacity or generation of a community solar facility; or

(B) financially benefits from a community solar facility, even if the person does not own a community solar subscription for the facility.

(21) UNDERSERVED AREA.—The term “underserved area” means—

(A) a geographical area with low or no photovoltaic solar deployment, as determined by the Secretary;

(B) a geographical area that has low or no access to electricity, as determined by the Secretary;

(C) a geographical area with an average annual residential retail electricity price that exceeds the national average annual residential retail electricity price (as reported by the Energy Information Agency) by 50 percent or more; or

(D) trust land, as defined in section 3765 of title 38, United States Code.

(b) Establishment.—The Secretary shall establish a program to provide financial assistance to eligible entities to—

(1) carry out planning projects that are necessary to establish the feasibility, obtain required permits, identify beneficiaries, or secure subscribers to install a covered facility; or

(2) install a covered facility for beneficiaries in accordance with this section.

(c) Applications.—

(1) IN GENERAL.—To be eligible to receive assistance under the program, an eligible entity shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require.

(2) INCLUSION FOR INSTALLATION ASSISTANCE.—

(A) REQUIREMENTS.—For an eligible entity to receive assistance for a project to install a covered facility, the Secretary shall require the eligible entity to include—

(i) information in the application that is sufficient to demonstrate that the eligible entity has obtained, or has the capacity to obtain, necessary permits, subscribers, access to an installation site, and any other items or agreements necessary to comply with an agreement under subsection (g)(1) and to complete the installation of the applicable covered facility;

(ii) a description of the mechanism through which financial benefits will be distributed to beneficiaries or subscribers; and

(iii) an estimate of the anticipated financial benefit for beneficiaries or subscribers.

(B) CONSIDERATION OF PLANNING PROJECTS.—The Secretary shall consider the successful completion of an eligible planning project pursuant to subsection (b)(1) by the eligible entity to be sufficient to demonstrate the ability of the eligible entity to meet the requirements of subparagraph (A)(i).

(d) Selection.—

(1) IN GENERAL.—In selecting eligible projects to receive assistance under the program, the Secretary shall—

(A) prioritize—

(i) eligible installation projects that will result in the most financial benefit for subscribers, as determined by the Secretary;

(ii) eligible installation projects that will result in development of covered facilities in underserved areas; and

(iii) eligible projects that include apprenticeship, job training, or community participation as part of their application; and

(B) ensure that such assistance is provided in a manner that results in eligible projects being carried out on a geographically diverse basis within and among covered States.

(2) DETERMINATION OF FINANCIAL BENEFIT.—In determining the amount of financial benefit for low-income households of an eligible installation project, the Secretary shall ensure that all calculations for estimated household energy savings are based solely on electricity offsets from the applicable covered facility and use formulas established by the State or local government with jurisdiction over the applicable covered facility for verifiable household energy savings estimates that accrue to low-income households.

(e) Assistance.—

(1) FORM.—The Secretary may provide assistance under the program in the form of a grant (which may be in the form of a rebate) or a low-interest loan.

(2) MULTIPLE PROJECTS FOR SAME FACILITY.—

(A) IN GENERAL.—An eligible entity may apply for assistance under the program for an eligible planning project and an eligible installation project for the same covered facility.

(B) SEPARATE SELECTIONS.—Selection by the Secretary for assistance under the program of an eligible planning project does not require the Secretary to select for assistance under the program an eligible installation project for the same covered facility.

(f) Use of assistance.—

(1) ELIGIBLE PLANNING PROJECTS.—An eligible entity receiving assistance for an eligible planning project under the program may use such assistance to pay the costs of pre-installation activities associated with an applicable covered facility, including—

(A) feasibility studies;

(B) permitting;

(C) site assessment;

(D) on-site job training, or other community-based activities directly associated with the eligible planning project; or

(E) such other costs determined by the Secretary to be appropriate.

(2) ELIGIBLE INSTALLATION PROJECTS.—An eligible entity receiving assistance for an eligible installation project under the program may use such assistance to pay the costs of—