(a) In general

The Clean Air Act (42 U.S.C. 7401 et seq.) is amended by adding after title VI the following new title:

VII Climate Pollution Reduction Program

A General

701. Definitions

In this title:

(1) Attributable greenhouse gas emissions

The term attributable greenhouse gas emissions, for a given calendar year, means—

(A)

for a covered entity that is a fuel producer or importer described in paragraph (4)(B), greenhouse gas emissions that would be emitted from the combustion of any petroleum-based or coal-based liquid fuel, petroleum coke, or natural gas liquid, produced or imported by that covered entity during that calendar year for sale or distribution in interstate commerce;

(B)

for a covered entity that is a bulk producer or importer described in paragraph (4)(C), the tons of carbon dioxide equivalent of any gas described in clauses (i) through (v) of paragraph (4)(C)—

(i)

produced or imported by such covered entity during that calendar year for sale or distribution in interstate commerce; or

(ii)

released as fugitive emissions in the production of fluorinated gas; and

(C)

for a natural gas local distribution company described in paragraph (4)(J), greenhouse gas emissions that would be emitted from the combustion of the natural gas, and any other gas meeting the specifications for commingling with natural gas for purposes of delivery, as determined by the Administrator, that such entity delivered during that calendar year to customers that are not covered entities.

(2) Carbon dioxide equivalent

The term carbon dioxide equivalent means the unit of measure, expressed in tons, of a greenhouse gas as provided under section 713.

(3) Compliance period

(A)

The term compliance period, with respect to compliance periods 2 through 10 and subsequent compliance periods, means the period of 3 consecutive calendar years following the preceding compliance period.

(B)

The term compliance period 1 means calendar years 2027, 2028, and 2029.

(4) Covered entity

The term covered entity means each of the following:

(A)

Any electricity source with a nameplate capacity of at least 25 megawatts.

(B)

Any stationary source that produces, and any entity that imports, for sale or distribution in interstate commerce in 2025 or any subsequent year, petroleum-based or coal-based liquid fuel, petroleum coke, or natural gas liquid, which, in the aggregate, if combusted would emit 25,000 or more tons of carbon dioxide equivalent, as determined by the Administrator.

(C)

Any stationary source that produces, and any entity that imports, for sale or distribution in interstate commerce, in bulk, or in products designated by the Administrator, in 2025 or any subsequent year, 25,000 or more tons of carbon dioxide equivalent of—

(i)

fossil fuel-based carbon dioxide;

(ii)

nitrous oxide;

(iii)

perfluorocarbons;

(iv)

sulfur hexafluoride;

(v)

any other fluorinated gas, except for nitrogen trifluoride, that is a greenhouse gas, as designated by the Administrator under section 712; or

(vi)

any combination of greenhouse gases described in clauses (i) through (v).

(D)

Any stationary source that emits 25,000 or more tons of carbon dioxide equivalent of nitrogen trifluoride in 2025 or any subsequent year.

(E)

Any geologic sequestration site.

(F)

Any stationary source in any of the following industrial sectors:

(i)

Adipic acid production.

(ii)

Aluminum production.

(iii)

Ammonia manufacturing.

(iv)

Cement production.

(v)

Hydrochlorofluorocarbon production.

(vi)

Lime manufacturing.

(vii)

Nitric acid production.

(viii)

Petroleum refining.

(ix)

Phosphoric acid production.

(x)

Silicon carbide production.

(xi)

Soda ash production.

(xii)

Titanium dioxide production.

(xiii)

Coal-based liquid or gaseous fuel production.

(G)

Any stationary source in the chemical or petrochemical sector that, in 2025 or any subsequent year—

(i)

produces acrylonitrile, carbon black, ethylene, ethylene dichloride, ethylene oxide, or methanol; or

(ii)

emits 25,000 or more tons of carbon dioxide equivalent from the production of any number of chemical or petrochemical products.

(H)

Any stationary source that—

(i)

emits 25,000 or more tons of carbon dioxide equivalent in 2025 or any subsequent year; and

(ii)

is in one of the following industrial sectors: ethanol production, ferroalloy production, fluorinated gas production, food processing, glass production, hydrogen production, iron and steel production, lead production, magnesium production, pulp and paper manufacturing, landfill operations, wastewater treatment operations, and zinc production.

(I)

Any fossil fuel-fired combustion device (such as a boiler) or grouping of such devices that—

(i)

is all or part of an industrial source not specified in subparagraph (D), (F), (G), or (H); and

(ii)

emits 25,000 or more tons of carbon dioxide equivalent in 2025 or any subsequent year.

(J)

Any natural gas local distribution company that in 2025 or any subsequent year delivers to customers that are not covered entities 460,000,000 cubic feet or more of the total of—

(i)

natural gas; and

(ii)

any other gas meeting the specifications for commingling with natural gas for purposes of delivery, as determined by the Administrator.

(5) Criteria air pollutant

The term criteria air pollutant means an air pollutant subject to national ambient air quality standards under section 109.

(6) Designated representative

The term designated representative means, with respect to an entity described in subparagraph (A), (B), or (C), an individual authorized, through a certificate of representation submitted to the Administrator by the owners and operators or similar entity official, to represent the owners and operators or similar entity official in all matters pertaining to this title (including the holding, transfer, or disposition of emission allowances), and to make all submissions to the Administrator under this title. Entities covered under this paragraph are—

(A)

covered entities;

(B)

reporting entities (as defined in section 714); and

(C)

any other entities receiving or holding emission allowances under this title.

(7) Electricity source

The term electricity source means a stationary source that includes one or more combustion devices that, on January 1, 2025, or any date thereafter, are fossil fuel-fired and serve a generator that produces electricity for sale.

(8) Emission allowance

(A) In general

Except as provided in subparagraph (B), the term emission allowance means a limited authorization to emit, or have attributable greenhouse gas emissions in an amount of, 1 ton of carbon dioxide equivalent of a greenhouse gas in accordance with this title.

(B) Overburdened communities

With respect to a covered entity that is a stationary source, including electricity sources and industrial sources, operating in a location designated as a Cleaner Air Community under section 733 of part C of this title, the term emission allowance means a limited authorization to emit 0.5 tons of carbon dioxide equivalent of a greenhouse gas in accordance with this title.

(9) Fossil fuel

The term fossil fuel means natural gas, petroleum, or coal, or any form of solid, liquid, or gaseous fuel derived therefrom.

(10) Fossil fuel-fired

The term fossil fuel-fired means powered by combustion of fossil fuel, alone or in combination with any other fuel, regardless of the percentage of fossil fuel consumed.

(11) Fugitive emissions

The term fugitive emissions means greenhouse gas emissions from leaks, valves, joints, or other small openings in pipes, ducts, or other equipment, or from vents.

(12) Geologic sequestration site

The term geologic sequestration site means a site where a greenhouse gas is geologically sequestered.

(13) Greenhouse gas

The term greenhouse gas means any gas described or designated under section 712(a).

(14) Greenhouse gas emission

The term greenhouse gas emission means the release of a greenhouse gas into the ambient air, except—

(A)

a release of methane for which the Administrator imposes and collects a charge under section 136(c) of the Clean Air Act;

(B)

a release of a hydrofluorocarbon that is regulated pursuant to title VI of this Act or section 103 of the Consolidated Appropriations Act, 2021; and

(C)

greenhouse gases that are captured and geologically sequestered, unless the greenhouse gas is later released into the ambient air.

(15) Hazardous air pollutant

The term hazardous air pollutant has the meaning given such term in section 112(a).

(16) Hold

The term hold means, with respect to an emission allowance, to have in the appropriate account in the emission allowance tracking system established under section 718.

(17) Holder

The term holder means, with respect to an emission allowance, the entity that holds such emission allowance.

(18) Industrial source

The term industrial source means any stationary source that—

(A)

is not an electricity source; and

(B)

is in—

(i)

the manufacturing sector (as defined in North American Industrial Classification System codes 31, 32, and 33); or

(ii)

the natural gas processing or natural gas pipeline transportation sector (as defined in North American Industrial Classification System codes 211112 and 486210).

(19) Natural gas liquid

The term natural gas liquid means ethane, butane, isobutane, natural gasoline, and propane.

(20) Natural gas local distribution company

The term natural gas local distribution company has the meaning given the term local distribution company in section 2(17) of the Natural Gas Policy Act of 1978.

(21) Negative Emissions Activities Fund

The term Negative Emissions Activities Fund means the fund established under section 105 of the Climate Pollution Standard and Community Investment Act of 2025.

(22) Output

The term output means the total tons or other standard unit (as determined by the Administrator) produced by an entity in an industrial sector.

(23) Petroleum

The term petroleum includes crude oil, tar sands, oil shale, and heavy oils.

(24) Retire

The term retire, with respect to an emission allowance, means to disqualify such emission allowance for any subsequent use.

(25) Sequestered; sequestration

The terms sequestered and sequestration mean the separation, isolation, or removal of greenhouse gases from the atmosphere, as determined by the Administrator. Such terms include biological, geologic, and mineral methods of separation, isolation, and removal, but do not include ocean fertilization techniques.

(26) Ton

The term ton means a metric ton.

(27) Vintage year

The term vintage year means the calendar year for which an emission allowance is established under—

(A)

section 715; or

(B)

with respect to the establishment of the cost containment reserve, section 720.

702. Economy-wide reduction goal

It is the national goal for the United States—

(1)

to achieve net-zero greenhouse gas emissions by not later than 2050; and

(2)

for each year thereafter—

(A)

to maintain net-zero greenhouse gas emissions; and

(B)

seek to achieve net-negative greenhouse gas emissions as determined necessary by a scientific assessment conducted by the Administrator.

703. Labor standards

The Administrator shall take such action as may be necessary to ensure that all laborers and mechanics employed by contractors or subcontractors on projects assisted pursuant to this title, including projects funded in whole or in part by the proceeds from the sale of emission allowances or by financial incentives provided using such proceeds, 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. The Secretary of Labor shall have, with respect to the labor standards specified in this section, the authority and functions set forth in Reorganization Plan No. 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 of title 40, United States Code.

704. Regulations

Except as otherwise provided in this title, the Administrator shall promulgate final regulations to carry out this title not later than 24 months after the date of enactment of this title.

B Pollution Limitation and Phasedown from Covered Entities

711. Aggregate enforceable targets for covered entities

(a) In general

The Administrator shall, by rule, establish targets that are enforceable under this title for the aggregate quantity of greenhouse gas emissions of covered entities for each calendar year beginning in 2027 such that—

(1)

in 2027, the aggregate quantity of greenhouse gas emissions (including attributable greenhouse gas emissions) from covered entities is at least 5 percent below the average annual aggregate quantity of greenhouse gas emissions in 2023, 2024, and 2025 from equivalent entities described in subsection (d)(1);

(2)

in 2030, the aggregate quantity of greenhouse gas emissions (including attributable greenhouse gas emissions) from covered entities does not exceed 50 percent of the aggregate quantity of greenhouse gas emissions in 2005 from equivalent entities described in subsection (d)(2);

(3)

in 2040, the aggregate quantity of greenhouse gas emissions (including attributable greenhouse gas emissions) from covered entities does not exceed 30 percent of the aggregate quantity of greenhouse gas emissions in 2005 from equivalent entities described in subsection (d)(2); and

(4)

in 2050, the aggregate quantity of greenhouse gas emissions (including attributable greenhouse gas emissions) from covered entities does not exceed 10 percent of the aggregate quantity of greenhouse gas emissions in 2005 from equivalent entities described in subsection (d)(2).

(b) Annual reductions

Beginning with 2028, the Administrator shall, by rule, require the aggregate quantity of greenhouse gas emissions from covered entities to decline on an annual basis, by at least 2 percent of the aggregate quantity of greenhouse gas emissions in 2005 from equivalent entities described in subsection (d)(2), until annual greenhouse gas emissions from covered entities do not exceed 10 percent of the aggregate quantity of greenhouse gas emissions in 2005 from equivalent entities described in subsection (d)(2). Upon achieving such an annual aggregate quantity, the Administrator shall ensure that any future annual quantity of greenhouse gas emissions from covered entities does not exceed the annual aggregate quantity of greenhouse gas emissions from covered entities in the preceding year.

(c) Addition of covered entities or greenhouse gases, or change in exchange values

The quantities calculated pursuant to subsections (a) and (b) may not be revised to reflect—

(1)

an entity becoming or ceasing to be a covered entity after the date of the establishment of targets pursuant to subsection (a);

(2)

the designation of a gas as a greenhouse gas pursuant to section 712 after such date; or

(3)

the revision of the carbon dioxide equivalent value of any greenhouse gas pursuant to section 713 after such date.

(d) Equivalent entities described

An entity is an equivalent entity described in this subsection if—

(1)

for purposes of subsection (a)(1), the entity would have been a covered entity in 2023, 2024, or 2025, if—

(A)

the definition of a covered entity in section 701 had been in effect for the respective year; and

(B)

the references in such definition to 2025 were references to 2023; and

(2)

for purposes of paragraphs (2) through (4) of subsection (a), an entity that would have been a covered entity in 2005, if—

(A)

the definition of a covered entity in section 701 had been in effect for the respective year; and

(B)

the references in such definition to 2025 were references to 2005.

712. Designation of greenhouse gases

(a) Greenhouse gases

For purposes of this title, the following are greenhouse gases:

(1)

Carbon dioxide.

(2)

Methane.

(3)

Nitrous oxide.

(4)

Sulfur hexafluoride.

(5)

Any hydrofluorocarbon.

(6)

Any perfluorocarbon.

(7)

Nitrogen trifluoride.

(8)

Any other anthropogenic gas designated as a greenhouse gas by the Administrator under subsection (b).

(b) Determination of additional greenhouse gases

The Administrator, by rule—

(1)

may determine whether 1 ton of an anthropogenic gas makes the same or greater contribution to global warming over 100 years as 1 ton of carbon dioxide;

(2)

shall publish, in accordance with section 713, the carbon dioxide equivalent value for each gas with respect to which the Administrator makes an affirmative determination under paragraph (1);

(3)

may for each gas with respect to which the Administrator makes an affirmative determination under paragraph (1) and that is used as a substitute for a class I or class II substance pursuant to title VI of this Act, determine the extent to which to regulate that gas pursuant to title VI of this Act; and

(4)

may designate as a greenhouse gas for purposes of this title each gas for which the Administrator makes an affirmative determination under paragraph (1), to the extent that it is not regulated pursuant to title VI or section 103 of the Consolidated Appropriations Act, 2021.

713. Carbon dioxide equivalent value of greenhouse gases

(a) Measure of quantity of greenhouse gases

Any provision of this title that refers to a quantity or percentage of a quantity of a greenhouse gas means the quantity or percentage of the greenhouse gas expressed in carbon dioxide equivalent.

(b) Initial value

Except as revised by the Administrator pursuant to subsection (c), the carbon dioxide equivalent value for purposes of this title for any greenhouse gas shall be the 100-year Global Warming Potential for the greenhouse gas provided in the most recent assessment report from the Intergovernmental Panel on Climate Change as of the date of enactment of this title.

(c) Periodic revision

(1) Revision and publication

Not later than January 1, 2030, and (except as provided in paragraph (3)) not less than once every 5 years thereafter, the Administrator shall—

(A)

revise the carbon dioxide equivalent value for purposes of this title for any greenhouse gas to reflect the 100-year Global Warming Potential provided in the most recent assessment report from the Intergovernmental Panel on Climate Change (or any successor organization); and

(B)

publish in the Federal Register any such revision.

(2) Effective date of revision

A revision published in the Federal Register under paragraph (1)(B) shall take effect for greenhouse gas emissions on January 1 of the first calendar year that begins at least 9 months after the date on which the revision was published.

(3) Decrease in frequency

The Administrator may decrease the frequency of revision under paragraph (1) if the Administrator determines that such decrease is appropriate in order to synchronize such revision with any similar revision process carried out pursuant to the United Nations Framework Convention on Climate Change or to an agreement negotiated under that convention.

714. Greenhouse gas registry for monitoring and reporting

(a) Reporting entity

In this section, the term reporting entity means an entity that is—

(1)

a covered entity;

(2)

an entity that is required to report under part 98 of title 40, Code of Federal Regulations (or any successor regulations);

(3)

an entity that receives emission allowances under section 723; or

(4)

any other entity that the Administrator determines to be a reporting entity for purposes of this title.

(b) Regulations

(1) In general

Not later than 6 months after the date of enactment of this title, the Administrator shall issue regulations establishing a Federal greenhouse gas registry.

(2) Reporting

Except as provided in paragraphs (3) and (4), such regulations—

(A)

shall require reporting entities to report to the Administrator consistent with part 98 of title 40, Code of Federal Regulations (or any successor regulations);

(B)

may include reporting requirements that are additional to the requirements under such part 98 of title 40, Code of Federal Regulations (or any successor regulations), as determined appropriate by the Administrator to implement this title; and

(C)

shall ensure the completeness, consistency, transparency, accuracy, precision, and reliability of data included in the Federal greenhouse gas registry.

(3) Timing

For calendar year 2027 and each subsequent calendar year, each reporting entity shall submit annually data required under this section to the Administrator not later than 60 days after the end of the applicable calendar year, except when the data is already being reported to the Administrator on an earlier timeframe.

(4) Waiver of reporting requirements

The Administrator may waive reporting requirements under this section for specific entities to the extent that the Administrator determines that sufficient and equally or more reliable, verified, and timely data are available to the Administrator and the public on the internet under other mandatory, statutory Federal requirements.

715. Emission allowances

(a) In general

The Administrator shall establish a quantity of emission allowances for each calendar year starting in 2027 as necessary to achieve the targets under section 711(a) and the reductions under section 711(b).

(b) Identification numbers

The Administrator shall assign to each emission allowance established under subsection (a) a unique identification number that includes the vintage year for that emission allowance.

(c) Emission allowances for each calendar year

(1) Compliance periods 1 and 2

Not later than January 1, 2027, the Administrator shall establish the quantity of emission allowances for each year in compliance period 1 and compliance period 2.

(2) Following two compliance periods

Not later than July 1, 2032, and every 6 years thereafter, the Administrator shall establish the quantity of emission allowances for each calendar year of the following two compliance periods. When establishing the quantity of emission allowances under this paragraph for a calendar year, the Administrator shall, consistent with subsection (a), consider—

(A)

the economy-wide reduction goal established by section 702;

(B)

the total number of emission allowances in circulation, as required to be published by subsection 716(e); and

(C)

other factors determined appropriate by the Administrator to support the effective implementation of this title, including the goal established by section 702.

(3) Failure to set emission allowance quantity

If the Administrator fails to establish the quantity of emission allowances for a compliance period by the start of the first calendar year of the compliance period, the quantity of emission allowances established for each calendar year of such compliance period shall be the amount equal to—

(A)

the quantity of emission allowances established for the preceding calendar year; minus

(B)

the quantity of emission allowances that is equal to 3.5 percent of the aggregate quantity of greenhouse gas emissions in 2005.

716. Prohibition of excess greenhouse gas emissions

(a) Prohibition

Effective January 1, 2027, a covered entity may not emit greenhouse gas emissions and have attributable greenhouse gas emissions, in combination, in excess of the quantity of greenhouse gas emissions represented by the number of emission allowances surrendered by the covered entity pursuant to subsection (b)(3) for the compliance period.

(b) Demonstrating compliance

Except as otherwise provided in this section, a covered entity shall surrender to the Administrator for retirement—

(1)

by 12:01 a.m. on April 1 (or a later date established by the Administrator under subsection (h)) of the second year of a compliance period, not less than the number of emission allowances needed to represent 50 percent of the total quantity of greenhouse gas emissions and attributable greenhouse gas emissions, in combination, of the covered entity during the first year of the compliance period;

(2)

by 12:01 a.m. on April 1 (or a later date established by the Administrator under subsection (h)) of the third year of a compliance period, not less than the number of emission allowances (including those surrendered pursuant to paragraph (1) for the compliance period) needed to represent 50 percent of the total quantity of greenhouse gas emissions and attributable greenhouse gas emissions, in combination, of the covered entity during the first 2 years of the compliance period; and

(3)

by 12:01 a.m. on April 1 (or a later date established by the Administrator under subsection (h)) of the year following a compliance period, not less than the number of emission allowances (including those surrendered pursuant to paragraphs (1) and (2) for the compliance period) needed to represent 100 percent of the total quantity of greenhouse gas emissions and attributable greenhouse gas emissions, in combination, of the covered entity during the full compliance period.

(c) Application to fractions of tons

For purposes of this section, any amount less than 1 ton of carbon dioxide equivalent of greenhouse gas emissions or attributable greenhouse gas emissions shall be treated as 1 ton of such carbon dioxide equivalent.

(d) Retirement of emission allowances

As soon as practicable after each deadline established under subsection (b), the Administrator shall retire the quantity of emission allowances surrendered by covered entities pursuant to subsection (b)(3) for the compliance period.

(e) Total number of allowances in circulation

As soon as practicable after the deadline described in subsection (b)(3), the Administrator shall publish an estimate of the total quantity of emission allowances held by all persons on the day after such deadline.

(f) Designated representatives

The final regulations promulgated under section 703 shall require that each covered entity, and each entity holding emission allowances or receiving emission allowances from the Administrator under this title, submit to the Administrator a certificate of representation designating a designated representative.

(g) Education and outreach

The Administrator shall establish and carry out a program of education and outreach to assist covered entities in meeting the requirements of this title. Such program shall include education with respect to using markets to effectively meet such requirements.

(h) Adjustment of deadline

The Administrator may, by rule, establish a deadline for demonstrating compliance in accordance with subsection (b) later than the date otherwise provided in subsection (b), as necessary to ensure the availability of greenhouse gas emissions data, but in no event shall the deadline be later than June 1 of the respective calendar year.

717. Penalty for noncompliance

(a) Excess greenhouse gas emissions penalty

(1) In general

A covered entity that fails for any year to demonstrate compliance as required by section 716 by the applicable deadline shall be liable for payment to the Administrator of a civil penalty in the amount described in paragraph (2).

(2) Amount

The amount of a penalty required to be paid under paragraph (1) shall be equal to the product obtained by multiplying—

(A)

the number of tons of carbon dioxide equivalent of greenhouse gas emissions and attributable greenhouse gas emissions for which the covered entity failed to demonstrate compliance as required by section 716 by the applicable deadline; by

(B)

3 times the auction clearing price for the earliest vintage year emission allowances in the last auction carried out pursuant to section 720 before such deadline.

(3) Timing

A penalty under this subsection shall be immediately due and payable to the Administrator, without demand.

(4) No effect on liability

A penalty due and payable by a covered entity under this subsection may not diminish the liability of the covered entity for any fine, penalty, or assessment against the covered entity for the same violation under any other provision of this Act or any other law.

(b) Excess emissions allowances

A covered entity that fails to demonstrate compliance for any year, as described in subsection (a)(1), shall be liable to offset the covered entity’s excess greenhouse gases emissions and attributable greenhouse gas emissions by an equal quantity of emission allowances during the year after the year in which such failure to demonstrate compliance occurred.

(c) Treatment as separate violation

For purposes of this section, each ton of carbon dioxide equivalent for which a covered entity fails to demonstrate compliance as required by section 716 shall be treated as a separate violation.

718. Tracking system

The final regulations promulgated under section 703 shall include a system for issuing, recording, holding, and tracking emission allowances. Such system shall provide for appropriate publication of the information in the system on the internet.

719. Program flexibility

(a) Permitted transactions

Except as otherwise provided in this title, the lawful holder of an emission allowance may—

(1)

without restriction, sell, exchange, or transfer the emission allowance;

(2)

subject to subsection (c), hold the emission allowance; and

(3)

request that the Administrator retire the emission allowance.

(b) Banking

An emission allowance may be used to comply with section 716 for emissions in—

(1)

the vintage year for the emission allowance; or

(2)

any calendar year subsequent to the vintage year for the emission allowance.

(c) Holding limit

Beginning after compliance period 1, a covered entity may retain emission allowances issued for vintage years in previous compliance periods representing no more than 100 percent of the total quantity of greenhouse gas emissions and attributable greenhouse gas emissions, in combination, of the covered entity during the preceding compliance period.

(d) No restriction on transactions

The privilege of purchasing, holding, selling, exchanging, transferring, and requesting retirement of emission allowances may not be restricted to covered entities, except as otherwise provided in this title.

720. Auction procedures

(a) In general

For each calendar year for which the Administrator establishes emission allowances under section 715, the Administrator shall auction emission allowances in accordance with the following:

(1) Frequency; first auction

Auctions shall be conducted quarterly, with the first auction to be conducted not later than March 31, 2027.

(2) Auction schedule; current and future vintages

The Administrator—

(A)

at each quarterly auction under this section, shall offer both a portion of the emission allowances for the same vintage year as the year in which the auction is being conducted and a portion of the emission allowances for future vintage years;

(B)

may offer at any auction under this section emission allowances for vintage years of up to 6 years after the year in which the auction is being conducted; and

(C)

during a vintage year, shall make available for auction not less than 50 percent of the emission allowances established under section 715 for the vintage year, including any such emissions allowances—

(i)

auctioned on consignment pursuant to section 721; or

(ii)

made available for auction from the emissions containment reserve.

(3) Auction format

Auctions shall follow a single-round, sealed-bid, uniform price format.

(4) Participation; financial assurance

Auctions shall be open to any person, except that the Administrator may establish financial assurance requirements to ensure that auction participants will perform on their bids.

(5) Disclosure of beneficial ownership

Each bidder in an auction shall be required to disclose the person or entity sponsoring or benefiting from the bidder’s participation in the auction if such person or entity is, in whole or in part, other than the bidder.

(6) Purchase limits

No person may, directly or in concert with one or more other participants, purchase more than 5 percent of the emission allowances offered at any quarterly auction.

(7) Publication of information

After an auction, the Administrator shall, in a timely fashion, publish the identities of winning bidders, the quantity of emission allowances obtained by each winning bidder, and the auction clearing price determined by the Administrator.

(b) Regulations

(1) Initial regulations

Not later than 12 months after the date of enactment of this title, the Administrator, in consultation with other Federal agencies, as appropriate, shall promulgate regulations governing the auction of emission allowances under this section and section 721.

(2) Revised regulations

Not earlier than January 1, 2030, the Administrator may, in consultation with other Federal agencies, as appropriate, at any time, revise the initial regulations promulgated under paragraph (1).

(3) Other requirements

The Administrator may include in the regulations under this subsection such other requirements or provisions as the Administrator, in consultation with other Federal agencies, as appropriate, considers appropriate to promote effective, efficient, transparent, and fair administration of auctions.

(c) Minimum price

The minimum price for any emission allowance auctioned under this section shall be $15 for any auction occurring in calendar year 2027. The minimum price for an emission allowance auctioned under this section for any auction occurring after calendar year 2027 shall be—

(1)

the minimum price applicable under this subsection for the previous calendar year; plus

(2)

the dollar amount that is equal to—

(A)

such minimum price; multiplied by

(B)

the percent that is the sum of—

(i)

5 percent; plus

(ii)

the percentage change in the Consumer Price Index (for all urban consumers) for the previous calendar year.

(d) Cost containment reserve

(1) In general

The Administrator shall—

(A)

establish a cost containment reserve;

(B)

deposit into such reserve emission allowances established pursuant to paragraph (2) and emission allowances described in subsection (e)(4); and

(C)

make available for auction allowances in such reserve in accordance with paragraph (4).

(2) Deposits into reserve

(A) Filling the reserve initially

The Administrator shall establish, and deposit into the cost containment reserve, a quantity of emission allowances equal to the average annual aggregate quantity of greenhouse gas emissions in calendar years 2023, 2024, and 2025 from equivalent entities described in section 711(d) for the respective calendar years.

(B) Refilling the reserve

Following any auction under this section, if any emission allowances that were offered at the auction were not purchased, the Administrator shall—

(i)

deposit a quantity, as determined appropriate by the Administrator, of such emission allowances in the cost containment reserve; and

(ii)

retire the remaining quantity of such emission allowances.

(C) Special rule

If any emission allowances established pursuant to subparagraph (A) remain in the cost containment reserve, the Administrator shall retire one such emission allowance for each emission allowance deposited into the reserve under subparagraph (B).

(3) Price triggers

(A) Annual determination

Each calendar year, the Administrator shall set at least two price triggers at which, if the auction clearing price for an auction under this section would meet or exceed the price trigger, the Administrator may offer at such auction emission allowances from the cost containment reserve.

(B) Lowest price trigger

The Administrator may not set a price trigger under subparagraph (A) for a calendar year that is less than 4 multiplied by the minimum price of an emission allowance for that calendar year under subsection (c).

(4) Release of emission allowances

If the auction clearing price for an auction conducted under this section meets or exceeds a price trigger set under paragraph (3), the Administrator may, with respect to such a price trigger, offer at such auction up to 5 percent of the emission allowances in the cost containment reserve at the beginning of the calendar year. For any auction under this section, the Administrator may not offer more than 10 percent of the emission allowances in the cost containment reserve.

(e) Emissions containment reserve

(1) In general

The Administrator shall—

(A)

establish an emissions containment reserve;

(B)

each calendar year, deposit into such reserve 10 percent of the emission allowances established under section 715 for such calendar year; and

(C)

make available for auction emission allowances in such reserve pursuant to paragraph (3).

(2) Price triggers

(A) Annual determination

Each calendar year, the Administrator shall set at least two price triggers at which, if the auction clearing price for an auction under this section would meet or exceed the price trigger, the Administrator will make available for auction emission allowances from the emissions containment reserve.

(B) Lowest price trigger

The Administrator may not set a price trigger under subparagraph (A) for a calendar year that is less than 125 percent of the minimum price of an emission allowance for that calendar year under subsection (c).

(3) Release of emission allowances

At any auction under this section, the Administrator—

(A)

may not offer more than 25 percent of the emission allowances deposited into the emissions containment reserve for the respective calendar year at any of the auctions under this section in such calendar year; and

(B)

for each price trigger met or exceeded by the auction clearing price, the Administrator may offer up to 12.5 percent of the emission allowances deposited into the emissions containment reserve for the respective calendar year.

(4) Allowances not purchased

At the end of each calendar year, any emission allowance in the emissions containment reserve offered but not purchased at auction may be deposited into the cost containment reserve pursuant to subsection (d)(2)(B).

(f) Public auction information

Prior to the first auction under this section each calendar year, the Administrator shall publish the following:

(1)

The minimum price for an emission allowance for such calendar year under subsection (c).

(2)

The number of emission allowances of each vintage year to be offered at each auction in such calendar year.

(3)

The number and dollar amounts of the price triggers for such calendar year for the cost containment reserve established under subsection (d).

(4)

The number and dollar amounts of the price triggers for such calendar year for the emissions containment reserve established under subsection (e).

(5)

Any additional information determined to be appropriate by the Administrator.

(g) Delegation or contract

The Administrator may by delegation or contract provide for the conduct of auctions under this section under the Administrator’s supervision—

(1)

by other departments or agencies of the Federal Government; or

(2)

by nongovernmental agencies, groups, or organizations.

721. Consignment auctions

(a) Voluntary consignment

Any entity holding emission allowances may request that the Administrator make available for auction under section 720 the emission allowances on consignment.

(b) Mandatory consignment

(1) Conditional allocations

Before any emission allowance allocated under subsection (a) or (b) of section 722 (including any emission allowance transferred to a covered entity pursuant to section 722(a)(3)(B) or section 722(a)(6)(B)(ii)) may be sold, further transferred, retired, or used to demonstrate compliance under section 716, such emission allowance shall be made available for auction on consignment pursuant to this section and section 720.

(2) Transparency

The Administrator shall publish—

(A)

the names of entities holding emission allowances that are made available for auction on consignment pursuant to paragraph (1);

(B)

the quantities of emission allowances that are so made available for auction; and

(C)

any additional information relating to emission allowances that are so made available for auction, as determined by the Administrator.

(c) Proceeds

Notwithstanding section 3302 of title 31, United States Code—

(1)

the Federal Government shall, not later than 90 days after receipt of the proceeds from any auction on consignment pursuant to subsection (b)(1), transfer such proceeds to the entity that requested the Administrator offer the respective emission allowances at an auction under section 720; and

(2)

no such proceeds shall be held by any officer or employee of the United States or treated for any purpose as public monies.

(d) Unsold emission allowances

The Administrator shall return to the entity offering an emission allowance at auction on consignment pursuant to this section any such allowance that is not sold at the auction.

722. Allocation of emission allowances

(a) For the benefit of consumers

(1) In general

Beginning with vintage year 2027, the Administrator shall allocate emission allowances established each calendar year under section 715(a) to States and Indian Tribes in the following amounts:

(A)

For compliance period 1, 30 percent of the emission allowances established for each year of such compliance period under section 715(a).

(B)

For compliance period 2, 27 percent of the emission allowances established for each year of such compliance period under section 715(a).

(C)

For compliance period 3, 24 percent of the emission allowances established for each year of such compliance period under section 715(a).

(D)

For compliance period 4, 21 percent of the emission allowances established for each year of such compliance period under section 715(a).

(E)

For compliance period 5, 18 percent of the emission allowances established for each year of such compliance period under section 715(a).

(F)

For compliance period 6, 15 percent of the emission allowances established for each year of such compliance period under section 715(a).

(G)

For compliance period 7, 12 percent of the emission allowances established for each year of such compliance period under section 715(a).

(H)

For compliance period 8, 9 percent of the emission allowances established for each year of such compliance period under section 715(a).

(I)

For compliance period 9, 6 percent of the emission allowances established for each year of such compliance period under section 715(a).

(J)

For compliance period 10, 3 percent of the emission allowances established for each year of such compliance period under section 715(a).

(K)

For each subsequent compliance period, 0 percent of the emission allowances established for each year of such compliance periods under section 715(a).

(2) Distribution

Not later than December 31 of each year, the Administrator shall distribute among States and Indian Tribes the quantity of emission allowances allocated under paragraph (1) for the following vintage year, ratably based on the ratio of—

(A)

the aggregate quantity of greenhouse gases emitted within a jurisdiction in the second preceding vintage year associated with the combustion of fuels for—

(i)

electricity generation; and

(ii)

residential and commercial end uses of fuels, excluding end uses related to transportation; to

(B)

the aggregate quantity of greenhouse gases emitted within the United States in the second preceding vintage year associated with the combustion of fuels for—

(i)

electricity generation; and

(ii)

residential and commercial end uses of fuels, excluding end uses related to transportation.

(3) Use of emission allowances

States and Indian Tribes shall—

(A)

sell, on consignment in accordance with section 721, the emission allowances allocated under this subsection and use the proceeds of such sales exclusively for the benefit of consumers of electricity and residential and commercial end users of fuels by carrying out a—

(i)

cost-effective energy efficiency program to reduce the use of electricity and fuel;

(ii)

rebate or other financial incentive program to encourage adoption and use of low-emission fuel alternatives, which may include a program that provides for electrification; or

(iii)

rebate or other direct financial assistance program, which may include a low-income ratepayer assistance program; or

(B)

transfer, on a nonreimburseable basis, such emission allowances to one or more covered entities responsible for greenhouse gas emissions or attributable greenhouse gas emissions within the jurisdiction of the State or Indian Tribe to be used by such entities exclusively for the benefit of consumers of electricity and residential and commercial end users of fuels.

(4) Administrative expenses

States and Indian Tribes may use up to 5 percent of the proceeds from the sale of emission allowances allocated under this subsection for administrative purposes in carrying out programs under paragraph (3).

(5) Reporting

Each State and Indian Tribe receiving emission allowances under this subsection shall submit to the Administrator, not later than 12 months after each receipt of such emission allowances, a report, in accordance with such requirements as the Administrator may prescribe, that—

(A)

describes the use of emission allowances sold or transferred under paragraph (3), including a description of the energy efficiency, fuel switching, and consumer assistance programs supported pursuant to paragraph (3);

(B)

includes an evaluation, prepared by an independent third party, of the performance of the energy efficiency, fuel switching, and consumer assistance programs supported pursuant to paragraph (3); and

(C)

describes any transfer of emission allowances to covered entities under paragraph (3)(B).

(6) Enforcement

If the Administrator determines a State or Indian Tribe is not in compliance with this subsection, the Administrator may—

(A)

(i)

withhold a portion of emission allowances under this subsection that would otherwise be distributed to the State or Indian Tribe for the next vintage year; and

(ii)

distribute such withheld emission allowances among the remaining States and Indian Tribes ratably in accordance with the formula under paragraph (2); or

(B)

(i)

withhold a portion of emission allowances under this subsection that would otherwise be distributed to the State or Indian Tribe for the next vintage year; and

(ii)

directly transfer, on a nonreimburseable basis, such withheld emission allowances to one or more covered entities responsible for greenhouse gas emissions or attributable greenhouse gas emissions within the jurisdiction of such State or Indian Tribe to be used by such entities exclusively for the benefit of consumers as described in paragraph (3)(A).

(b) Energy-Intensive, Trade-Exposed Industries

(1) In general

Beginning with vintage year 2027, the Administrator shall allocate emission allowances to eligible industry sectors designated and listed under section 723(a)(1), to be distributed in accordance with section 723, in the following amounts:

(A)

For compliance periods 1 and 2, 15 percent of the emission allowances established for each year of such compliance periods under section 715(a).

(B)

For compliance periods 3 and 4, 12 percent of the emission allowances established for each year of such compliance periods under section 715(a).

(C)

For compliance periods 5 and 6, 9 percent of the emission allowances established for each year of such compliance periods under section 715(a).

(D)

For compliance periods 7 and 8, 6 percent of the emission allowances established for each year of such compliance periods under section 715(a).

(E)

For compliance periods 9 and 10, 3 percent of the emission allowances established for each year of such compliance periods under section 715(a).

(F)

For each subsequent compliance period, 0 percent of the emission allowances established for each year of such compliance periods under section 715(a).

(2) Carryover

After the Administrator distributes emission allowances pursuant to section 723 for any vintage year, any emission allowances allocated to eligible industry sectors designated and listed under section 723(a)(1) pursuant to this subsection that have not been so distributed shall—

(A)

remain available for distribution pursuant to section 723 for the following vintage year; and

(B)

be treated as part of the allocation to such entities for that following vintage year.

(c) Low-Income Consumers

Beginning with vintage year 2027, the Administrator shall make available for auction, pursuant to section 720, 15 percent of the emission allowances established for each year under section 715(a). The proceeds from such auction shall be made available to the Secretary of the Treasury to provide rebates under section 102 of the Climate Pollution Standard and Community Investment Act of 2025.

(d) State, territorial, and Tribal governments

Beginning with vintage year 2027, the Administrator shall make available for auction, pursuant to section 720, 10 percent of the emission allowances established for each year under section 715(a), with the proceeds distributed to States and Indian Tribes pursuant to section 724.

(e) Local governments

Beginning with vintage year 2027, the Administrator shall make available for auction, pursuant to section 720, 5 percent of the emission allowances established for each year under section 715(a). The proceeds from such auction shall be made available to the Secretary of Energy to carry out subtitle E of title V of the Energy Independence and Security Act of 2007.

(f) Jurisdictions Hosting High-Level Nuclear Waste

(1) In general

Beginning with vintage year 2027, the Administrator shall make available for auction, pursuant to section 720, 0.5 percent of the emission allowances established for each year under section 715(a), with the proceeds provided to each State and Indian Tribe for which a repository where high-level radioactive waste and spent nuclear fuel are permanently disposed of is located within the jurisdiction of the State or Indian Tribe.

(2) No eligible State or Indian Tribe

If no State or Indian Tribe is eligible to be provided proceeds under this subsection with respect to a vintage year, such proceeds shall be provided to States and Indian Tribes pursuant to section 724.

(3) Multiple States or Indian Tribes

If more than one State or Indian Tribe is eligible for proceeds under this subsection with respect to a vintage year, such proceeds shall be distributed ratably among such States and Indian Tribes based on the ratio of—

(A)

the mass of high-level radioactive waste and spent nuclear fuel permanently disposed of within the jurisdictions of the respective States or Indian Tribes; relative to

(B)

the mass of high-level radioactive waste and spent nuclear fuel permanently disposed of in the United States.

(g) Worker and community assistance

(1) In general

Beginning with vintage year 2027, the Administrator shall make available for auction, pursuant to section 720, 5 percent of the emission allowances established for each year under section 715(a), with the proceeds deposited into the Worker and Community Assistance Fund established under section 103 of the Climate Pollution Standard and Community Investment Act of 2025.

(2) Determination of additional revenues needed

For any year, the Administrator, in consultation with the Secretary of the Treasury, the Secretary of Labor, and the Director of the Office of Energy and Economic Transition as established by section 203 of the Climate Pollution Standard and Community Investment Act of 2025—

(A)

may determine that additional revenue is necessary to carry out sections 206, 207, and 208 of the Climate Pollution Standard and Community Investment Act of 2025; and

(B)

if emission allowances are available and upon a determination under subparagraph (A), may offer at an auction pursuant to section 720, in addition to the emission allowances made available for auction pursuant to paragraph (1), up to 5 percent of emissions allowances established for such year under section 715(a), with the proceeds deposited into the Worker and Community Assistance Fund established under section 103 of the Climate Pollution Standard and Community Investment Act of 2025.

(h) Frontline communities

Beginning with vintage year 2027, the Administrator shall make available for auction, pursuant to section 720, 10 percent of the emission allowances established for each year under section 715(a), with the proceeds deposited into the Cleaner Air Community Fund established under section 104 of the Climate Pollution Standard and Community Investment Act of 2025.

(i) Negative emissions activities

The Administrator shall make available for auction, pursuant to section 720, emission allowances established for each year under section 715(a), with the proceeds deposited into the Negative Emissions Activities Fund established under section 105 of the Climate Pollution Standard and Community Investment Act of 2025, in the following amounts:

(1)

For compliance periods 1 and 2, 2.5 percent of the emission allowances established for each year of such compliance periods under section 715(a).

(2)

For compliance periods 3 and 4, 5 percent of the emission allowances established for each year of such compliance periods under section 715(a).

(3)

For compliance periods 5 and 6, 7.5 percent of the emission allowances established for each year of such compliance periods under section 715(a).

(4)

For compliance periods 7 and 8, 10 percent of the emission allowances established for each year of such compliance periods under section 715(a).

(5)

For compliance periods 9 and 10, 15 percent of the emission allowances established for each year of such compliance periods under section 715(a).

(6)

For each subsequent compliance period, 20 percent of the emission allowances established for each year of such compliance period under section 715(a).

(j) Energy Innovation Fund

Beginning with vintage year 2027, the Administrator shall make available for auction, pursuant to section 720, 2.5 percent of the emission allowances established for each year under section 715(a), with the proceeds deposited into the Energy Innovation Fund established under section 106 of the Climate Pollution Standard and Community Investment Act of 2025.

723. Output-based distributions for energy-intensive, trade-exposed industries

(a) Designation of eligible industrial sectors

(1) In general

The Administrator shall—

(A)

designate (using the six-digit classification system of the North American Industrial Classification System of 2002 or a superseding classification system) eligible industrial sectors based on the criteria described in paragraph (3); and

(B)

maintain a list of such eligible industrial sectors.

(2) Eligible industrial sector list

(A) Initial list

Not later than June 30, 2026, the Administrator shall publish in the Federal Register a list of eligible industrial sectors designated under this subsection.

(B) Subsequent lists

Not later than June 30, 2032, and not less than every 6 years thereafter, the Administrator shall publish in the Federal Register an updated version of the list published under subparagraph (A).

(3) Eligibility criteria

(A) In general

To be designated as an eligible industrial sector under this subsection, an industrial sector shall meet the criteria in—

(i)

both subparagraphs (B) and (C); or

(ii)

subparagraph (D).

(B) Energy or greenhouse gas intensity

An industrial sector meets the criteria in this subparagraph if the sector has—

(i)

an energy intensity of at least 5 percent, calculated by dividing—

(I)

the cost of purchased electricity and fuel of such sector; by

(II)

the value of the shipments of such sector; or

(ii)

a greenhouse gas intensity of at least 5 percent, calculated by dividing—

(I)

the number of tons of greenhouse gas emissions (including direct emissions from fuel combustion, process emissions, and indirect emissions from the generation of electricity used to produce the output of the sector) of such sector, multiplied by 20; by

(II)

the value of the shipments of such sector.

(C) Trade intensity

An industrial sector meets the criteria in this subparagraph if the sector has a trade intensity of at least 15 percent, calculated by dividing—

(i)

the value of the imports and exports of such sector; by

(ii)

the sum of the value of the shipments and the value of imports of such sector.

(D) Very high energy or greenhouse gas intensity

An industrial sector meets the criteria in this subparagraph if the sector has—

(i)

an energy intensity of at least 20 percent, as calculated under subparagraph (B)(i); or

(ii)

a greenhouse gas intensity of at least 20 percent, as calculated under subparagraph (B)(ii).

(4) Use of data

When determining the eligibility of an industrial sector, or a subgroup of entities within an industrial sector, under this subsection—

(A)

the Administrator shall use the average annual data for the most recent 4 years for which such data are available;

(B)

if data are unavailable for any industrial sector at the six-digit classification level referred to in paragraph (1)(A), the Administrator may extrapolate the information necessary to determine the eligibility of a sector from available data pertaining to a broader industrial category classified in—

(i)

the North American Industrial Classification System of 2002; or

(ii)

a superseding classification system;

(C)

the Administrator may request any additional information, as determined necessary by the Administrator, from any owner or operator of an entity in a potentially eligible industrial sector; and

(D)

the Administrator shall seek information from the owner or operator of an entity in a potentially eligible industrial sector that produces more than one product at a facility in order to attribute energy usage and greenhouse gas emissions associated with the production of each product type.

(5) Listing of subgroups as an eligible industrial sector

(A) Designation of subgroups

The Administrator may, pursuant to paragraph (1), designate and list a subgroup of entities within an industrial sector as a separate eligible industrial sector if the subgroup of entities meets the eligibility criteria in paragraph (3)(A) for designation as an eligible industrial sector.

(B) Determination

In determining under paragraph (3)(A) whether a subgroup of entities meets the criteria under subparagraphs (B) and (C) or (D) of such paragraph, the Administrator shall consider—

(i)

the energy intensity, greenhouse gas intensity, and trade intensity of the industrial sector represented by such subgroup of entities; and

(ii)

the products manufactured by the subgroup and not the industrial process by which such products are manufactured, except that the Administrator may determine a subgroup of entities that manufacture a product primarily from virgin material to be listed as a separate eligible industrial sector from another subgroup of entities that manufacture the same product primarily from recycled material.

(6) Individual petition for eligibility

(A) Petition

The owner or operator of an entity in an industrial sector may petition the Administrator to designate, pursuant to paragraph (5), one or more entities in such industrial sector as an eligible industrial sector.

(B) Final action

Not later than 6 months after the receipt of a petition under subparagraph (A), the Administrator shall take final action on such petition.

(7) Special cases

(A) Iron and steel sector

For purposes of this section, the Administrator shall consider as being in different industrial sectors—

(i)

entities using integrated iron and steelmaking technologies (including coke ovens, blast furnaces, and other ironmaking technologies); and

(ii)

entities using electric arc furnace technologies.

(B) Metal, soda ash, or phosphate production classified under more than one NAICS code

For purposes of this section, the Administrator—

(i)

may not aggregate data for the beneficiation or other processing (including agglomeration) of metal ores, soda ash, or phosphate with subsequent steps in the process of metal, soda ash, or phosphate manufacturing;

(ii)

shall consider the beneficiation or other processing (including agglomeration) of metal ores, soda ash, or phosphate to be in separate industrial sectors from the metal, soda ash, or phosphate manufacturing sectors; and

(iii)

shall treat industrial sectors that beneficiate or otherwise process (including agglomeration) metal ores, soda ash, or phosphate as ineligible to receive emission allowances under this section related to the activity of extracting metal ores, soda ash, or phosphate.

(C) Petroleum refining

Industrial sectors that refine petroleum products may not be designated and listed as an eligible industrial sector under this section.

(b) Output-Based Allocation Benchmarks

(1) In general

The Administrator shall determine the average greenhouse gas emissions per unit of output for each eligible industrial sector designated and listed under subsection (a)(1) (referred to in this subsection as the output-based allocation benchmark for such sector).

(2) Calculating benchmark

(A) In general

The Administrator shall calculate the output-based allocation benchmark for each eligible industrial sector based on the greenhouse gas emissions, including direct emissions, process emissions, and indirect emissions, expressed in tons of carbon dioxide equivalent, per unit of output, for such eligible industrial sector using an average of the 3 most recent years of the best available data for such eligible industrial sector.

(B) Calculating indirect emissions

Each person selling electricity to the owner or operator of an entity in an eligible industrial sector shall—

(i)

provide the owner or operator of the entity and the Administrator relevant greenhouse gas emissions data for such entity; and

(ii)

where it is not possible to determine the precise indirect greenhouse gas emissions for such entity, use the monthly average data reported by the Energy Information Administration or collected and reported for the electric utility serving the entity to determine greenhouse gas emissions.

(C) Multiple eligible industrial sectors at one facility

The Administrator shall seek information from the owner or operator of an entity in an eligible industrial sector that produces more than one product at a facility in order to attribute energy usage and greenhouse gas emissions associated with the production of each product type at such facility.

(3) Data sources

For the purposes of this subsection, the Administrator—

(A)

shall use data—

(i)

reported to the Environmental Protection Agency;

(ii)

reported to other Federal agencies; and

(iii)

from each owner or operator of an entity in an eligible industrial sector; and

(B)

may require an owner or operator of an entity in an eligible industrial sector to provide such information as the Administrator finds necessary to determine the output-based allocation benchmark for such eligible industrial sector.

(c) Distribution of emission allowances

(1) In general

For each vintage year, the Administrator shall—

(A)

distribute pursuant to this section emission allowances allocated under section 722(b), not later than October 31 of the preceding calendar year; and

(B)

make such annual distributions to the owner or operator of each entity responsible for output in an eligible industrial sector listed under subsection (a) in the amount of emission allowances calculated under this subsection.

(2) Assistance factor

For the purpose of distributing emission allowances under this subsection, the Administrator shall use the following (referred to in this subsection as an assistance factor):

(A)

For compliance period 1, 1.0.

(B)

For compliance period 2, 0.9.

(C)

For compliance period 3, 0.8.

(D)

For compliance period 4, 0.7.

(E)

For compliance period 5, 0.6.

(F)

For compliance period 6, 0.5.

(G)

For compliance period 7, 0.4.

(H)

For compliance period 8, 0.3.

(I)

For compliance period 9, 0.2.

(J)

For compliance period 10, 0.1.

(K)

For each subsequent compliance period, 0.

(3) Amount of emission allowances

The amount of emission allowances to be distributed to the owner or operator of an entity in an eligible industrial sector shall be calculated by—

(A)

the output-based allocation benchmark calculated pursuant to subsection (b) of the industrial sector of such entity; multiplied by

(B)

the average annual output of such entity for the 2 years preceding the year of the distribution; multiplied by

(C)

the appropriate assistance factor under paragraph (2).

(4) New entities

Not later than 24 months after the date of enactment of this title, the Administrator shall issue regulations governing the distribution of emission allowances for the first 4 years of operation of a new entity in an eligible industrial sector. These regulations shall provide for—

(A)

the distribution of emission allowances to such entities based on comparable entities in the same eligible industrial sector; and

(B)

an adjustment in the third and fourth years of operation to reconcile the total amount of emission allowances received during the first 4 years of operation of the new entity to the amount the entity would have received during such years of operation had the appropriate data been available for the first and second years of operation.

(d) Total maximum distribution

The Administrator may not distribute more emission allowances for any vintage year pursuant to this section than are allocated for use pursuant to section 722(b) for that vintage year. For any vintage year for which the total emission allowances calculated for distribution pursuant to this section would exceed the number of emission allowances allocated pursuant to section 722(b), the Administrator shall reduce each entity’s distribution on a pro rata basis so that the total distribution of emission allowances under this section equals the number of emission allowances allocated under section 722(b).

(e) Cessation of qualifying activities

If, as determined by the Administrator, an entity is no longer in an eligible industrial sector—

(1)

the Administrator may not distribute emission allowances to the owner or operator of such entity under this section; and

(2)

the owner or operator of such entity shall return to the Administrator—

(A)

all emissions allowances that have been distributed under this section to the owner or operator for future vintage years; and

(B)

a prorated amount of emission allowances distributed under this section for the vintage year in which the entity ceases to be in an eligible industrial sector.

724. Assistance to State, territorial, and tribal governments

(a) In general

The Administrator shall annually distribute to States and Indian Tribes the proceeds of emission allowances auctioned pursuant to section 722(d). Such proceeds shall be used by States and Indian Tribes to provide financial assistance and incentives in accordance with subsection (e) that support the reduction of air pollution, including criteria air pollutants, hazardous air pollutants, and emissions of greenhouse gases, or promote adaptation to climate change.

(b) Regulations

Not later than 24 months after the date of enactment of this section, the Administrator shall promulgate regulations to carry out this section, including regulations—

(1)

to ensure that each State and Indian Tribe provides financial assistance and incentives efficiently and in accordance with this section and applicable Federal laws;

(2)

to prevent waste, fraud, and abuse;

(3)

to identify the forms of financial assistance and incentives that States and Indian Tribes may provide; and

(4)

to prescribe the form and content of reports that States and Indian Tribes are required to submit under this section.

(c) Intended use plans

(1) In general

After providing for public review and comment, each State and Indian Tribe receiving proceeds under this section shall annually prepare a plan that identifies the intended uses of such proceeds.

(2) Contents

An intended use plan prepared under paragraph (1) shall include—

(A)

a list of the projects or programs intended to be funded in the next fiscal year that begins after the date of the plan, including a description of each project or program; and

(B)

additional information as determined appropriate by the Administrator.

(d) Distribution among States and Indian Tribes

(1) In general

Not later than September 30 of each calendar year, the Administrator shall, in accordance with this section, distribute the proceeds of emission allowances auctioned pursuant to section 722(d) each year in accordance with the following formula:

(A)

25 percent shall be divided equally among the States.

(B)

50 percent of the emission allowances shall be distributed ratably among the States and Indian Tribes based on the population of each State and Indian Tribe, as contained in the most recent census data available from the Bureau of the Census at the time the Administrator calculates the formula for distribution.

(C)

25 percent shall be distributed ratably among the States and Indian Tribes on the basis of the energy consumption of each State and Indian Tribe as contained in the most recent State Energy Data System report of the Energy Information Administration (or such alternative reliable source as the Administrator may designate).

(2) Minimum amounts for Indian Tribes

The Administrator shall ensure that not less than 5 percent of the total proceeds distributed to States and Indian Tribes in each calendar year is distributed to Indian Tribes.

(3) Recalculation of distribution amounts

The Administrator shall recalculate the amounts to be distributed as determined by the formula in paragraph (1) not less frequently than once every 5 years.

(e) Uses

The proceeds distributed to each State and Indian Tribe pursuant to this section may be used to provide grants, tax credits, production incentives, loans, loan guarantees, forgivable loans, interest rate buydowns, and other types of financial assistance and incentives that support or promote the following:

(1)

Zero-emission electricity generation, including—

(A)

research, development, and demonstration of zero-emission electricity generation projects; and

(B)

deployment of community-scale, low-income, and distributed generation zero-emission electricity generation projects.

(2)

Energy storage projects.

(3)

Energy efficiency programs.

(4)

Grid modernization, including support for integration of renewable energy resources and distributed generation, demand response, demand side management, and systems analysis.

(5)

Deployment of zero-emission vehicles, including light-, medium-, and heavy-duty vehicles.

(6)

Charging, refueling, and grid infrastructure enhancement to support zero-emission vehicles.

(7)

Design, construction, and maintenance to improve the resilience of existing and new infrastructure, including public health infrastructure, to the impacts of climate change, including wildfires, drought, flooding, and other extreme weather events.

(8)

Electrification of residential and commercial products that reduces demand for natural gas, heating oil, gasoline, diesel fuel, or propane.

(9)

Wildlife and natural resource adaptation, including—

(A)

protection, maintenance, or restoration of natural infrastructure such as wetlands, reefs, and barrier islands;

(B)

conservation or maintenance of public lands;

(C)

protection and restoration of watersheds;

(D)

floodplain restoration and flood protection in densely populated urban areas; and

(E)

mitigation of ocean-related climate change effects, including effects on bays, estuaries, populated barrier islands, and other ocean-related features.

(10)

Sustainable agricultural programs, including promotion of soil health.

(11)

Food waste reduction programs.

(12)

Sustainable forest management and land use programs.

(13)

Reduction, capture, and use of methane from landfills and wastewater treatment facilities.

(14)

Material conservation programs.

(15)

Providing the non-Federal share of the cost of surface transportation capital projects that support public transportation and transit programs, including support for bike lanes and pathways, pedestrian pathways, and bike share programs provided that not more than 10 percent of assistance distributed to each State and Indian Tribe pursuant to this section shall be used for such purposes.

(16)

Construction, expansion, and retooling of facilities that manufacture components for clean energy technology systems.

(17)

Installation, retrofit, or conversion of equipment to enable manufacturing facilities to manufacture zero- or low-emission energy-intensive industrial products.

(18)

Any other program, including a State program, that reduces air pollution, deploys clean energy or energy efficient technologies, or enhances the resilience of infrastructure, as determined by the Administrator.

(f) Administrative costs

Not more than 5 percent of the proceeds distributed to States and Indian Tribes in any year may be used for the purposes of administrative expenses.

(g) Maintenance of effort

A State or Indian Tribe’s use of proceeds distributed by this section shall include assurances that the State or Indian Tribe will maintain support for existing activities carried out by such State or Indian Tribe in future years at least at the levels of such support that is the average of such State or Indian Tribe’s support for such programs in the 3 years preceding the date of enactment of this section. The Administrator may waive the requirement in this subsection for the purpose of relieving fiscal burdens on States and Indian Tribes that have experienced a precipitous decline in financial resources.

(h) Assistance to disadvantaged and rural communities

Not less than 50 percent of funding distributed to each State and Indian Tribe shall be used to provide assistance to activities located within disadvantaged or rural communities, as determined by the Administrator.

(i) Reporting

Each State and Indian Tribe shall submit to the Administrator a report every 2 years on the use of proceeds received under this section in accordance with such requirements as the Administrator may prescribe.

(j) Enforcement

If the Administrator determines that a State or Indian Tribe is not in compliance with this section, the Administrator may withhold proceeds that are otherwise to be distributed to such State or Indian Tribe. Proceeds withheld pursuant to this subsection may be distributed among the remaining States and Indian Tribes in accordance with the formula determined pursuant to subsection (d).

725. Program review

The Administrator shall—

(1)

in conjunction with the establishment of emission allowances under section 715(c)(2) for a compliance period, conduct a review of the implementation of this title;

(2)

in conducting each such review, seek public comment; and

(3)

upon completion of each such review, submit to Congress a report with the results of such review, including recommendations, if any, for legislation or administrative actions appropriate to achieve the targets under section 711(a) and the reductions under section 711(b).

726. Advisory board

(a) Establishment

The Administrator shall establish an advisory board to provide independent advice and recommendations to the Environmental Protection Agency with respect to the administration of this title.

(b) Membership

The advisory board shall be composed of members representing—

(1)

community-based organizations, including such organizations that carry out initiatives relating to environmental justice;

(2)

State governments;

(3)

Tribal Governments;

(4)

local governments;

(5)

labor organizations;

(6)

nongovernmental and environmental organizations;

(7)

agricultural organizations;

(8)

private sector organizations, including representatives of industries and businesses required to comply with the requirements of this title; and

(9)

experts in the field of—

(A)

socioeconomic analysis;

(B)

health and environmental effects;

(C)

pollution monitoring and exposure evaluation;

(D)

environmental law and civil rights law;

(E)

environmental health science research; or

(F)

agricultural science research.

(c) FACA

Chapter 10 of title 5, United States Code (commonly known as the Federal Advisory Committee Act), shall apply to the advisory board.

C Emissions Reductions in Every Community

731. Definitions

In this part:

(a) Cleaner Air Community

The term Cleaner Air Community means a community designated as a Cleaner Air Community under section 733.

(b) Cleaner Air Community Fund

The term Cleaner Air Community Fund means the fund established under section 104 of the Climate Pollution Standard and Community Investment Act of 2025.

(c) Community

The term community means a county, municipality, town, township, village, parish, borough, or other unit of general government below the State level.

732. Use of funds from the Cleaner Air Community Fund

(a) In general

(1) Assistance

Beginning in 2028 and each year thereafter, the Administrator shall provide assistance pursuant to this section using amounts made available in the Cleaner Air Community Fund.

(2) Priority

In providing assistance pursuant to this section using amounts made available in the Cleaner Air Community Fund, the Administrator shall prioritize providing assistance to communities designated as a Cleaner Air Community under section 733.

(b) Environmental and climate justice block grants

The Administrator is authorized to use amounts made available in the Cleaner Air Community Fund to award grants and provide technical assistance under section 138.

(c) Enhanced air pollution monitoring

(1) In general

The Administrator is authorized to award grants using amounts made available in the Cleaner Air Community Fund to local and State governments, Indian Tribes, air pollution control agencies, and other public or nonprofit private agencies, institutions, and organizations with appropriate technical capacity to support additional emissions monitoring in disadvantaged communities, as determined by the Administrator.

(2) Applications

To be eligible to receive a grant under this subsection, an entity described in paragraph (1) shall submit an application to the Administrator at such time, in such form, and containing such information and assurances as the Administrator may require.

(3) Prioritization of use of funds

The Administrator shall prioritize awarding grants under this subsection to entities that propose, in an application submitted under paragraph (2), to use grants to—

(A)

improve the reporting, monitoring, and enforcement of the requirements of this title;

(B)

improve air quality monitoring, including by the use of hyperlocal air monitoring equipment and techniques, in locations determined by the Administrator to have insufficient monitoring equipment and capabilities; or

(C)

inform management decisions, such as the placement or relocation of stationary air pollution monitors, transportation or land use planning, investments in mitigating air pollution sources, and other planning decisions, by relevant local, State, and Tribal governments.

(d) Development of emissions reduction plans

(1) In general

The Administrator is authorized to award grants and provide technical assistance using amounts made available in the Cleaner Air Community Fund to local and State governments, Indian Tribes, air pollution control agencies, and other public or nonprofit private agencies, institutions, and organizations that are located in a Cleaner Air Community to develop multiyear plans to reduce air pollution in such community.

(2) Plan contents

A plan developed under paragraph (1) shall include—

(A)

a proposal to develop effective and practical processes, methods, and devices to reduce, prevent, or control air pollution, including greenhouse gas emissions, within a Cleaner Air Community; and

(B)

a description of the expected use of funds to develop such proposals.

(3) Community engagement

Any entity receiving a grant to develop a multi-year plan under paragraph (1) shall demonstrate sufficient community engagement with local residents in the development of a plan.

(e) Implementation of emissions reduction plans

The Administrator is authorized to award grants using amounts made available in the Cleaner Air Community Fund to local and State governments, Indian Tribes, air pollution control agencies, and other public or nonprofit private agencies, institutions, and organizations that received a grant and developed a plan under subsection (d)—

(1)

if the Administrator determines such entity demonstrated sufficient community engagement with local residents in the development of the plan; and

(2)

for purposes of implementing the plan.

(f) Community-Based Health Services in Cleaner Air Communities

The Administrator, in consultation with the Secretary of Health and Human Services, is authorized to award grants using amounts made available in the Cleaner Air Community Fund to local and State governments, Indian Tribes, air pollution control agencies, and other public or nonprofit private agencies, institutions, and organizations, which shall be used to—

(1)

support community-based health centers, health monitoring, and other health care services located in a Cleaner Air Community; and

(2)

address the health impacts of individuals who reside or work in a Cleaner Air Community.

733. Cleaner Air Communities

(a) Designation of cleaner air communities

Beginning after compliance period 1, the Administrator shall designate, for a period of 5 years, communities as Cleaner Air Communities in accordance with this section.

(b) Eligibility

A community shall be eligible to be designated as a Cleaner Air Community under subsection (a) if the community, or a census tract within such community, experiences an increase of emissions of any greenhouse gas, hazardous air pollutant, or criteria air pollutant on an annual basis over the average annual quantity of emissions of the pollutant during the previous compliance period.

(c) Petition for designation

Any person may petition the Administrator to designate a community as a Cleaner Air Community under subsection (a).

(d) Consideration of petition

The Administrator shall review a petition under subsection (c) and make a determination on such petition not later than 1 year after receiving such petition.

(e) Redesignation of Cleaner Air Communities

Not later than 4 years after a community is designated as a Cleaner Air Community, the Administrator shall determine whether to extend the designation of the community as a Cleaner Air Community for another 5-year period beginning at the end of the last year during which that community experienced an increase of pollutants as described in subsection (b).

734. Annual report to Congress

Beginning in 2028, not later than 180 days after the end of each year, the Administrator shall submit to Congress a report for the previous year, which shall include—

(1)

a description of each grant awarded and the technical assistance provided under this part or section 138 pursuant to this part;

(2)

the amount of funding that remains available in the Cleaner Air Community Fund;

(3)

an assessment of the air quality monitoring needs of disadvantaged communities, as determined by the Administrator, including a determination whether additional air quality monitoring is necessary to determine the eligibility of communities to be designated as Cleaner Air Communities; and

(4)

an assessment of the air quality and public health of Cleaner Air Communities and efforts to reduce air pollution in such communities.

735. Regulations

The Administrator shall issue any regulations necessary to implement this part not later than 36 months after the date of enactment of this part.

D Negative Emissions Activities

741. Definitions

In this part:

(1) Beginning producer

The term beginning producer means an individual that—

(A)

(i)

has not operated a farm or ranch; or

(ii)

has operated a farm or ranch for not more than 10 years; and

(B)

meets such other criteria as the Administrator, in consultation with the Secretary, may establish.

(2) Eligible carbon removal technology

(A) In general

The term eligible carbon removal technology means any equipment, technique, or technology, placed into service after January 1, 2025, that—

(i)

captures carbon dioxide directly from ambient air or seawater, as determined appropriate by the Administrator; and

(ii)

permanently stores such captured carbon dioxide—

(I)

in a subsurface geologic formation or in materials, including building materials and mineralized carbon materials; or

(II)

using other permanent storage methods, as determined by the Administrator.

(B) Exclusion

The term eligible carbon removal technology does not include any equipment, technique, or technology that—

(i)

captures carbon dioxide which is deliberately released from naturally occurring subsurface springs; or

(ii)

stores or uses carbon dioxide for enhanced oil recovery.

(3) Eligible land

(A) In general

The term eligible land means land on which agricultural commodities, livestock, or forest-related products are produced.

(B) Inclusions

The term eligible land includes the following:

(i)

Cropland.

(ii)

Grassland.

(iii)

Rangeland.

(iv)

Pasture land.

(v)

Nonindustrial private forest land.

(vi)

Other agricultural land (including cropped woodland, marshes, environmentally sensitive areas, and agricultural land used for the production of livestock) on which identified or expected resource concerns related to agricultural production could be addressed through a contract under the Program as determined by the Administrator, in consultation with the Secretary.

(4) Eligible practice

The term eligible practice means an activity included on the list established under section 744(a).

(5) High-quality project

The term high-quality project means carrying out one or more eligible practices, which result in (as determined by the Administrator) verifiable, permanent, and additional reductions or avoidance of greenhouse gas emissions or sequestration of greenhouse gases.

(6) Payment

The term payment means financial assistance provided to a producer for performing one or more practices under this part.

(7) Producer

The term producer means an individual or entity capable of carrying out an eligible practice.

(8) Program

The term Program means the program established under section 743.

(9) Secretary

The term Secretary means the Secretary of the Department of Agriculture.

(10) Socially disadvantaged producer

The term socially disadvantaged producer means a farmer or rancher who is a member of a group whose members have been subjected to racial or ethnic prejudice because of their identity as members of the group without regard to their individual qualities.

742. Purposes

The purposes of the Program are to incentivize activities that result in reduction or avoidance of greenhouse gas emissions, or sequestration of greenhouse gases, and to optimize environmental benefits, by—

(1)

utilizing methodologies, in consultation with the Secretary for agricultural production and forest management practices on eligible land, for each eligible practice type for quantifying and verifying potential and actual reduction and avoidance of greenhouse emissions and sequestration of greenhouse gases;

(2)

avoiding, to the maximum extent practicable, the need for regulatory programs by assisting producers implementing eligible practices on eligible land in reducing or avoiding greenhouse gas emissions, or sequestering of greenhouse gases in order to achieve economy-wide greenhouse gas emissions reduction targets pursuant to section 702;

(3)

avoiding or minimizing, to the maximum extent practicable, adverse effects on human health or the environment resulting from the implementation of practices under the Program;

(4)

assisting producers implementing eligible practices on eligible land with adaptation to changing climatic conditions and mitigating against increasing weather volatility and drought; and

(5)

enabling the participation of beginning producers and socially disadvantaged producers in the Program.

743. Establishment

(a) In general

The Administrator, in consultation with the Secretary with respect to agricultural production and forest management practices on eligible land, shall establish a program to enter into contracts with producers to carry out practices using amounts made available in the Negative Emissions Activities Fund.

(b) Regulations

Not later than 2 years after the date of enactment of this part, the Administrator shall promulgate regulations to carry out this part.

744. Eligible practices

(a) List of eligible practices

—

(1) Listing

The Administrator, in consultation with the Secretary with respect to agricultural production and forest management activities on eligible land, shall establish, and may periodically revise, a list of activities that are eligible practices.

(2) Requirements

The Administrator may include an activity as an eligible practice on the list established under paragraph (1) if the Administrator, in consultation with the Secretary with respect to agricultural production and forest management practices on eligible land, determines the activity can reduce or avoid greenhouse gas emissions or sequester greenhouse gases, consistent with the purposes described in section 742.

(3) Modifications to list

The Administrator may at any time, by rule, add or remove an activity to or from the list of eligible practices in accordance with paragraph (2).

(b) Establishment of initial list

In establishing the initial list under subsection (a), the Administrator, in consultation with the Secretary with respect to agricultural production and forest management practices on eligible land, shall give priority to consideration of activities for which there are well developed methodologies for quantifying the reduction or avoidance of greenhouse gas emissions or sequestration of greenhouse gases with such modifications as the Administrator considers appropriate. At a minimum, the initial list prepared under this section shall include the following activities that reduce or avoid greenhouse gas emissions or sequester greenhouse gases:

(1)

Agricultural, grassland, and rangeland sequestration and management activities on eligible land.

(2)

Changes in carbon stocks attributed to land use change and forestry activities on eligible land.

(3)

Manure management and disposal on eligible land.

(4)

Livestock management on eligible land.

(5)

Eligible carbon removal technologies.

(c) Methodologies

(1) Establishment

The Administrator, in consultation with the Secretary with respect to agricultural production and forest management practices on eligible land, shall establish for each type of eligible practice a standardized methodology for determining the quantity of reduction or avoidance of greenhouse gas emissions, or sequestration of greenhouse gases, expected to be achieved by the type of eligible practice, including protocols for monitoring, reporting, and verifying performance, and accounting for uncertainty.

(2) Preexisting methodologies

In establishing a standard methodology for each type of eligible practice under paragraph (1), the Administrator shall consider basing such standard methodology on methodologies that exist as of the date of enactment of this part.

745. Applications

(a) In general

The Administrator may enter into a contract with a producer under section 746 if—

(1)

the producer submits to the Administrator an application that proposes to carry out one or more eligible practices; and

(2)

the Administrator approves such application under this section.

(b) Evaluation criteria

The Administrator shall develop criteria for evaluating applications submitted under subsection (a), which shall include consideration of the potential quantity and cost effectiveness of reduction or avoidance of greenhouse gas emissions, or sequestration of greenhouse gases, from the proposed eligible practices.

(c) Prioritization of applications

In evaluating applications submitted under subsection (a), the Administrator shall prioritize approving applications based on—

(1)

the anticipated quantity of reduction or avoidance of greenhouse gas emissions, or sequestration of greenhouse gases from the proposed eligible practices;

(2)

the cost to carry out the proposed eligible practices relative to other, similar eligible practices;

(3)

how effectively and comprehensively the proposed eligible practices are expected to achieve the reduction or avoidance of greenhouse gas emissions, or sequestration of greenhouse gases on eligible land;

(4)

the inclusion of high-quality projects; and

(5)

how well the proposed eligible practices fulfill the purposes of the Program.

(d) Grouping of applications

To the greatest extent practicable, the Administrator shall evaluate applications that propose to carry out the same or similar eligible practices together.

(e) Geographic scope

The Administrator shall, to the extent practicable, seek to approve applications from a diversity of geographic regions of the United States, taking into account factors such as soil type, cropping history, and water availability.

(f) Set aside for use of eligible carbon removal technology

The Administrator shall ensure that, each year, not less than 20 percent of the amount provided under contracts entered into under section 746 be provided to carry out eligible practices that use eligible carbon removal technology.

(g) Reverse auction

(1) In general

The Administrator may approve applications submitted under subsection (a) using a reverse auction mechanism to promote the most cost effective means of achieving the anticipated reduction or avoidance of greenhouse gas emissions, or sequestration of greenhouse gases, pursuant to contracts entered into under section 746.

(2) Multifactor bidding

When using a reverse auction mechanism under paragraph (1), the Administrator may incorporate noncost factors into the auction system, and prioritize approving applications that propose to carry out eligible practices that—

(A)

maximize the net greenhouse gas emissions reductions;

(B)

minimize the amount of greenhouse gas emissions released by carrying out the eligible practices;

(C)

would increase the diversity of types of eligible practices carried out pursuant to section 746;

(D)

would be carried out in geographically diverse areas;

(E)

support economic development or job creation in disadvantaged or rural communities, as determined by the Administrator;

(F)

include robust public engagement and community benefits commitments;

(G)

provide benefits to beginning producers and socially disadvantaged producers; and

(H)

include high-quality projects.

(h) Third-Party Aggregators

The Administrator may, when evaluating applications under this section, approve applications from entities that aggregate eligible practices from multiple producers.

746. Contracts and payments

(a) Contracts

After approving an application under section 745, the Administrator shall seek to enter into a contract with the producer that submitted the application.

(b) Required provisions

A contract entered into under subsection (a) shall—

(1)

require the producer to develop and implement a program plan which—

(A)

shall be approved by the Administrator, and may include such conditions the Administrator may require; and

(B)

shall provide for how the producer will—

(i)

carry out the eligible practices proposed in the application;

(ii)

manage, maintain, and improve such eligible practices for the duration of the contract;

(iii)

provide for the verification of the actual quantity of greenhouse gas emissions reduced or avoided, or greenhouse gases sequestered, from such eligible practices in accordance with section 747(b); and

(iv)

adequately mitigate environmental impacts (including impacts on biodiversity, land use, and water quality) with carrying out such eligible practices;

(2)

require the producer to maintain and supply information required by the Administrator to determine compliance with, and the effectiveness of, the program plan;

(3)

if the producer transfers the rights, title, and interests in eligible land subject to the contract (unless the transferee enters into an agreement with the Administrator to assume all obligations of the contract), require the producer to refund all payments received under the Program, as determined by the Administrator;

(4)

prohibit the producer from using payments made under subsection (e) to conduct any activities that would undermine the purposes of the Program;

(5)

include a provision that a producer may not be considered in violation of the contract for failure to comply with the contract due to circumstances beyond the control of the producer, including a disaster or other similar condition, as determined by the Administrator;

(6)

provide for annual payments to the producer in accordance with subsection (e); and

(7)

include any additional provisions the Administrator determines are necessary to carry out the Program.

(c) Renewal

If the Administrator determines that further implementation of a producer’s program plan would continue to result in cost-effective reduction or avoidance of greenhouse gas emissions, or sequestration of greenhouse gases, the Administrator may seek to renew the existing contract in the last year of the contract term if the producer—

(1)

demonstrates compliance with the provisions of the existing contract; and

(2)

agrees to adopt and continue to integrate new or improved eligible practices, as determined by the Administrator.

(d) Term of contracts

(1) In general

A contract entered into or renewed under this section shall be for a term of—

(A)

not less than 5 years; and

(B)

not more than 20 years.

(2) Factors for determining contract duration

The Administrator shall determine the term of a contract entered into or renewed under this section based on—

(A)

the eligible practices included in the producer’s program plan;

(B)

the opportunities for greenhouse gas emission reduction or avoidance, or sequestration of greenhouse gases, from such eligible practices; and

(C)

other factors determined appropriate by the Administrator.

(e) Annual payments

(1) In general

The Administrator shall provide annual payments to a producer with which the Administrator enters into or renews a contract under this section using amounts made available in the Negative Emissions Activities Fund.

(2) Amount

(A) Primary consideration

The Administrator shall determine the amount of an annual payment under paragraph (1) based on—

(i)

the expected quantity of greenhouse gas emission reduction or avoidance, or sequestration of greenhouse gases, resulting from the eligible practices included in the program plan;

(ii)

the amount and scale of high-quality projects included in the program plan; and

(iii)

if applicable, the results of a reverse auction carried out pursuant to section 745(g).

(B) Additional considerations

In determining the amount of an annual payment under this paragraph, the Administrator may also consider—

(i)

costs incurred by the producer associated with developing and implementing the program plan, including costs associated with plans, designs, materials, equipment, and labor;

(ii)

income forgone by the producer from eligible land; and

(iii)

the extent to which compensation would ensure long-term continued maintenance, management, and improvement of one or more practices included in the program plan.

(C) Additional payments for maintenance of program plans

If the Administrator and a producer agree to renew a contract pursuant to subsection (c), the Administrator may provide the producer a separate payment for purposes of maintaining the previously implemented program plan. Notwithstanding subparagraph (A), such separate payment may be based on actual measured and verified greenhouse gas emission reduction or avoidance, or sequestration of greenhouse gases.

(3) Advance payments

(A) In general

The Administrator may, if requested by a producer, provide a portion of an annual payment in advance for costs related to purchasing materials, equipment, or contracting in order to implement one or more eligible practices included in the producer’s program plan.

(B) Return of funds

If a payment provided in advance under subparagraph (A) is not expended during the 90-day period beginning on the date of receipt of the payment, the remaining amounts of such payment shall be returned to the Negative Emissions Activities Fund within a reasonable timeframe, as determined by the Administrator.

(C) Notification and documentation

The Administrator shall—

(i)

notify each producer at the time of enrollment in the Program of the option to receive advance payments; and

(ii)

document each request to receive advance payments.

(4) Financial assistance from other sources

(A) In general

Any payments received by a producer from a State, private organization, or person for the implementation of one or more eligible practices on eligible land shall be in addition to the payments provided to the producer pursuant to this subsection.

(B) Prohibition on double counting

The Administrator may require, as a condition of the contract, that a producer who receives payments for implementing eligible practices under this section may not also use such eligible practices as a compliance mechanism for another greenhouse gas emissions management program, including any foreign, Federal, State, local, or voluntary private greenhouse gas emissions management program, if such use would undermine the goal established by section 702.

(5) Limitation of payments

The Administrator may not make payments under this section in excess of the amounts made available in the Negative Emissions Activities Fund. If the aggregate of such payments in any calendar year will exceed such amount, the Administrator shall reduce the amount of payments to the extent necessary to comply with the requirement in the first sentence.

(f) Modification or termination of contracts

(1) Voluntary modification or termination

The Administrator may modify or terminate a contract entered into or renewed with a producer under this section if—

(A)

the producer agrees to the modification or termination; and

(B)

the Administrator determines that the modification or termination is in the public interest.

(2) Involuntary termination

The Administrator may terminate a contract under the program if the Administrator determines that the producer violated the contract.

(3) Repayment

If a contract is terminated, the Administrator may—

(A)

allow the producer to retain payments already received under the contract; or

(B)

require repayment, in whole or in part, of payments received.

(g) Enforcement of terms and conditions

(1) Termination

Notwithstanding subsection (f), if the Administrator determines that a producer violated a term or condition of a contract entered into or renewed under this section, and such violation warrants termination of the contract (as determined by the Administrator), the producer—

(A)

may not receive payments under the contract; and

(B)

shall refund to the Administrator all or a portion of the payments received by the owner or operator under the contract, including any interest on the payments, as determined by the Administrator.

(2) Other penalties

Notwithstanding subsection (f), if the Administrator determines that a producer violated a term or condition of a contract entered into or renewed under this section, but such violation does not warrant termination of the contract, the producer shall refund to the Administrator, or accept adjustments to, the payments provided to the owner or operator, as the Administrator determines to be appropriate.

747. Duties of the Administrator

(a) Technical assistance

(1) In general

To the extent appropriate, the Administrator, in consultation with the Secretary with respect to agricultural production and forest management practices on eligible land, shall assist producers with implementing program plans by providing to producers technical assistance, education, and outreach, including with respect to information and training to aid in the design, installation, and implementation of program plans.

(2) Prioritized producers

The Administrator shall prioritize providing technical assistance, education, and outreach under paragraph (1) to beginning producers and socially disadvantaged producers.

(b) Verification of program plans

The Administrator shall establish requirements for how producers may verify the actual quantity of greenhouse gas emissions reduced or avoided, or greenhouse gases sequestered, from eligible practices under section 746(b)(1)(B). The producer shall submit to the Administrator a report prepared by a third-party verifier accredited pursuant to paragraph (2) that provides such information as the Administrator requires to verify such quantities.

(1) Schedule

The Administrator shall prescribe a schedule for the submission of reports under this subsection, which shall occur not less than once during the term of each contract.

(2) Verifier accreditation

(A) In general

The Administrator shall establish a process and requirements for periodic accreditation of third-party verifiers to ensure that such verifiers are professionally qualified and have no conflicts of interest.

(B) Federal accreditation

The process and requirements established under subparagraph (A) may include—

(i)

accreditation standards for third-party verifiers; and

(ii)

training and testing requirements for third-party verifiers.

(C) Public accessibility

Each third-party verifier meeting the requirements for accreditation established pursuant to subparagraph (A) shall be listed in a publicly accessible database, which shall be maintained and updated by the Administrator.

(c) Audits

The Administrator shall conduct, on an annual basis, random audits of eligible activities carried out by producers under program plans and the activities of third-party verifiers. At a minimum, the Administrator shall conduct audits each year of a representative sample of eligible activities and geographical areas. Nothing in this subsection prevents the Administrator from conducting any other audit the Administrator considers to be necessary.

(d) Assessment of quantification methodologies

The Administrator shall regularly assess the verification requirements established under subsection (b) and develop new requirements for verification as needed in order to effectively carry out this part.

(e) Coordination with other Federal agencies

In carrying out this part, the Administrator shall coordinate activities of the Environmental Protection Agency with the Department of Agriculture and other relevant Federal agencies implementing conservation programs to align protocols, decrease administrative burdens, and increase enrollment in beneficial climate practices.

748. Reporting and database

(a) Report required

Not later than January 1, 2030, and every 2 years thereafter, the Administrator shall submit to Congress a report on the status of eligible practices funded under this part, including—

(1)

the amount of payments awarded;

(2)

results of the eligible practices associated with such payments, including estimates of the quantity of reduction or avoidance of greenhouse gas emissions, or increases in sequestration of greenhouse gases; and

(3)

recommendations to improve the effectiveness of such eligible practices.

(b) Practice database

(1) In general

The Administrator shall use the data reported under subsection (a) to establish and maintain a publicly available database that provides—

(A)

a compilation and analysis of eligible practices being carried out under program plans; and

(B)

a list of recommended eligible practices.

(2) Privacy

Information provided under paragraph (1) shall be transformed into a statistical or aggregate form so as to not include any identifiable or personal information of individual producers.

749. Program review and revision

At least once every 5 years, the Administrator, in consultation with the Secretary with respect to agricultural production and forest management practices on eligible land, shall review and, as appropriate, update and revise—

(1)

the list of eligible practices established under section 744(a);

(2)

the methodologies established under section 744(c);

(3)

the criteria to evaluate applications under section 745;

(4)

the Program, as necessary, to increase participation by beginning producers and socially disadvantaged producers; and

(5)

any other requirements established under this part to ensure the effectiveness of achieving the purposes in section 742, including by incorporating new data and evidence about actual emissions outcomes of practices to improve model certainty and the accuracy of emission reduction estimates.

E International Reserve Allowance Program

751. Definitions

In this part:

(1) Covered article

The term covered article means any good which—

(A)

is imported into the United States; and

(B)

contains greater than 100 pounds of any combination of any covered primary good.

(2) Covered imported good

The term covered imported good means—

(A)

a covered primary good; or

(B)

a covered article.

(3) Covered primary good

The term covered primary good means any good which—

(A)

is imported into the United States; and

(B)

is produced by an eligible industrial sector listed pursuant to section 723.

752. International reserve allowance program

(a) Establishment

(1) In general

The Administrator, with the concurrence of the Commissioner responsible for U.S. Customs and Border Protection and in consultation with additional Federal agencies as determined appropriate by the Administrator, shall issue regulations—

(A)

establishing an international reserve allowance program for the sale, exchange, purchase, transfer, and banking of international reserve allowances for covered imported goods;

(B)

ensuring that the price for purchasing an international reserve allowance is equivalent to the average of the previous four auction clearing prices for emission allowances under section 720;

(C)

establishing a general methodology for calculating the quantity of international reserve allowances that an importer of a covered imported good must submit;

(D)

requiring the submission of an appropriate amount of international reserve allowances for covered imported goods entering the customs territory of the United States;

(E)

exempting from the requirements of subparagraph (D) covered imported goods that are—

(i)

determined, by independent third-party verification, to meet the relevant output-based allocation benchmark under section 723(b);

(ii)

produced in any foreign country that the United Nations has identified as among the least developed of developing countries; or

(iii)

produced in any foreign country that the Administrator has determined to be responsible for less than 0.5 percent of total global greenhouse gas emissions and less than 5 percent of United States imports of covered imported goods with respect to the relevant eligible industrial sector;

(F)

specifying the procedures that U.S. Customs and Border Protection will apply for the declaration and entry of covered imported goods into the customs territory of the United States;

(G)

establishing procedures that prevent circumvention of the international reserve allowance program requirements for covered imported goods that are manufactured or processed in more than one foreign country; and

(H)

publishing, on an annual basis, relevant information regarding the quantity of international reserve allowances sold, the quantity of covered imported goods entering the customs territory of the United States, relevant greenhouse gas emissions information of such goods, the country of origin of such goods, and other information as determined relevant by the Administrator.

(2) Purpose of program

The Administrator shall establish the program under paragraph (1) consistent with international agreements to which the United States is a party, in a manner that minimizes the likelihood of carbon leakage as a result of differences between—

(A)

the direct and indirect costs of complying with part B of this title; and

(B)

the direct and indirect costs, if any, of complying in other countries with greenhouse gas regulatory programs, requirements, export tariffs, or other measures adopted or imposed to reduce greenhouse gas emissions.

(b) Greenhouse gas emissions data for covered imported goods

(1) In general

Under the regulations established under subsection (a), the Administrator shall require independent, third-party verification of greenhouse gas emissions data, including attributable greenhouse gas emissions, for all relevant stages of production of each covered imported good entering the customs territory of the United States.

(2) Failure to produce verified greenhouse gas emissions data

If the Administrator determines that an importer of a covered imported good has failed to provide accurate, sufficient, and independent, third-party verified data, the Administrator shall make a determination of the greenhouse gas emissions associated with the production of such good based on the best available data related to the greenhouse gas emissions and production data from all facilities which produce similar goods within the country of origin, the greenhouse gas emissions intensity of the general economy of the country of origin of such good, and other factors determined relevant by the Administrator.

(c) Disposition of proceeds

(1) Clean energy rebate program supplemental funding

50 percent of the proceeds from the sale of international reserve allowances under this section in each fiscal year shall be made available to the Secretary of the Treasury to carry out the Clean Energy Rebate Program established by section 102 of the Climate Pollution Standard and Community Investment Act of 2025.

(2) Administrative expenses

The Administrator may use, including the transfer of funds to the Commissioner responsible for U.S. Customs and Border Protection, not more than 10 percent of the proceeds from the sale of international reserve allowances under this section in each fiscal year to cover the administrative expenses associated with administering this section.

(3) Remaining revenues

The Administrator shall deposit any remaining proceeds from the sale of international reserve allowances under this section in a fiscal year in equal shares to the funds established by sections 103, 104, 105, and 106 of the Climate Pollution Standard and Community Investment Act of 2025.

(d) Effective date

The international reserve allowance program shall not apply to imports of covered imported goods entering the customs territory of the United States before January 1, 2028.

(e) Covered entities

International reserve allowances shall not be used by covered entities to comply with part B of this title.

(b) Conforming amendments

(a) In general

The Secretary, in consultation with the Secretary of Agriculture and the Secretary of Health and Human Services, shall carry out a program to be known as the Clean Energy Rebate Program to provide rebates to eligible households using amounts made available to the Secretary under sections 722(c) and 752 of the Clean Air Act.

(b) Streamlined participation for certain beneficiaries

The Secretary shall—

(c) Rebate amount

The rebate amount for an eligible household under this section shall be determined by the Secretary, accounting for—

(d) Delivery mechanism

The Secretary shall establish rules for providing rebates to eligible households under this section in an administratively simple manner, and on a quarterly basis through—

(e) Administration by States

(f) Outreach

The Secretary shall carry out a robust and comprehensive outreach program to ensure that eligible households learn of their eligibility for rebates and are advised of the opportunity to receive such rebates.

(g) Tax treatment

Rebate amounts provided under this section may not be includible in the gross income of the recipient for purposes of the Internal Revenue Code of 1986.

(h) Regulations

Not later than 24 months after the date of enactment of this title, the Secretary shall issue such regulations, or guidance, as the Secretary determines necessary or appropriate for the effective and efficient administration of the Clean Energy Rebate Program.

(i) Definitions

In this section:

(a) Establishment

There is established in the Treasury of the United States a fund, to be known as the Worker and Community Assistance Fund, consisting of—

(b) Expenditures from fund

(a) Establishment

There is established in the Treasury of the United States a fund, to be known as the Cleaner Air Community Fund, consisting of—

(b) Expenditures from fund

(a) Establishment

There is established in the Treasury of the United States a fund, to be known as the Negative Emissions Activities Fund, consisting of—

(b) Expenditures from fund

(a) Establishment

There is established in the Treasury of the United States a fund, to be known as the Energy Innovation Fund, consisting of—

(b) Expenditures from Fund

(c) Use of funds

The Secretary of Energy shall provide assistance under this section, distributed on a competitive basis, to local, State, and Tribal governments, institutions of higher education, companies, research foundations, trade and industry research collaborations, or consortia of such entities, or other appropriate research and development entities to support research, development, and demonstration of technology that the Secretary determines supports achievement of the goal established by section 702 of the Clean Air Act, including through targeted acceleration of—

(d) Supplement not supplant

Assistance provided under this section shall be used to supplement, and not to supplant, any other Federal resources available to carry out the activities described in this section.

(e) Report to Congress

Not later than 3 years after the date of enactment of this Act, and each year thereafter, the Secretary of Energy shall submit to Congress and make available to the public a report that describes the activities funded by the Energy Innovation Fund.

(a) Definition of emission allowance

In this section, the term emission allowance means any emission allowance established or issued under title VII of the Clean Air Act, or any derivative of such allowance.

(b) Interagency working group

(1) Adversely affected community

The term adversely affected community means a unit of local government or an Indian Tribe (or a political subdivision thereof) that has been, or is at risk to be, significantly disrupted by the United States transition to net-zero greenhouse gas emissions through the loss of a significant portion of locally generated tax revenue or employment due to the closure, or risk of closure, of an impacted employer within its jurisdiction.

(2) Adversely affected worker

The term adversely affected worker means an individual who has been, or is at risk to be, totally separated or partially separated from employment by an impacted employer.

(3) Director

The term Director means the Director of the Office of Energy and Economic Transition.

(4) Impacted employer

The term impacted employer means a private entity that is primarily engaged in business related to—

(5) Partial separation

The terms partial separation and partially separated mean, with respect to an individual who has not been totally separated from employment, that—

(6) Total separation

The terms total separation and totally separated mean the layoff or severance of an individual from employment by an impacted employer.

(a) In general

The Secretary of Energy shall seek to enter into an agreement with the National Academy of Sciences under which the Academy agrees to conduct studies on matters concerning the potential impacts of achieving net-zero greenhouse gas emissions on workers and communities dependent on employment related to fossil fuels as follows:

(b) Timing of agreement

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

(c) Requirements

The study and report under paragraph (1) of subsection (a), with respect to communities described in such paragraph, and the study and report under paragraph (2) of subsection (a), with respect to communities described in such paragraph, shall—

(d) Recommendations

The studies and reports under subsection (a) shall identify actions that could be taken regarding worker and community transition to net-zero greenhouse gas emissions, including—

(e) Authorization of appropriations

There is authorized to be appropriated such sums as are necessary to carry out this section.

(a) Establishment

There is established in the Executive Office of the President an Office of Energy and Economic Transition. The Office shall be led by a Director who shall be appointed by the President, to serve at the pleasure of the President, by and with the advice and consent of the Senate.

(b) Director qualifications

The Director shall be a person who, as a result of training, experience, and attainments, is exceptionally well qualified to—

(c) Compensation for director

The annual rate of pay for the Director shall be fixed by the President at a rate that may not exceed the annual rate of pay for level II of the Executive Schedule.

(d) Duties of director

The Director shall assist and advise the President on policies and programs of the Federal Government affecting the United States transition to achieving net-zero greenhouse gas emissions by—

(e) Employment of personnel, experts, and consultants

The Office may employ such officers and employees as may be necessary to carry out its duties under this title. In addition, the Office may employ and fix the compensation of such experts and consultants as may be necessary for carrying out such duties, in accordance with section 3109 of title 5, United States Code.

(f) Reimbursements

The Office may accept reimbursements from any private nonprofit organization, any department, agency, or instrumentality of the Federal Government, or any State or local government for the reasonable travel expenses incurred by the Director or an employee of the Office in connection with attendance at any conference, seminar, or similar meeting conducted for the benefit of the Office.

(g) Report to congress

Beginning in 2027, the President shall transmit to Congress a report, to be known as the Worker and Community Transition Report, not less than once every 2 years, which shall set forth—

(h) Authorization of appropriations

There are authorized to be appropriated to carry out this section such sums as are necessary.

(a) In general

Not later than 1 year after the date of enactment of this Act, the Director shall convene regularly a task force, to be known as the Interagency Energy and Economic Transition Task Force, to enhance the coordination of relevant programs and activities intended to support adversely affected workers and adversely affected communities, with an emphasis on economic development and diversification activities in adversely affected communities.

(b) Composition

The Task Force shall be comprised of the following (or a designee):

(c) Functions

The Task Force shall—

(d) Public participation

The Task Force shall—

(a) In general

Not later than 1 year after the date of enactment of this Act, the Director shall establish a committee, to be known as the Stakeholder Advisory Committee, to consult with representatives of adversely affected communities, adversely affected workers, industry, labor unions, economic development experts, State, local, and Tribal governments, and other organizations and individuals, as determined appropriate by the Director, to address the needs of workers and communities affected by the United States energy transition to net-zero greenhouse gas emissions.

(b) Membership

The Stakeholder Advisory Committee shall be comprised of members who have knowledge of, or experience relating to, workers and communities adversely affected by the United States energy transition to net-zero greenhouse gas emissions, with an emphasis on economic development and diversification activities in adversely affected communities, and shall include—

(c) Responsibilities

The Stakeholder Advisory Committee shall provide independent advice and recommendations to the Director with respect to issues relating to the duties of the Office of Energy and Economic Transition, including—

(d) Recommendations from the stakeholder advisory committee

The Director shall provide a written response to each recommendation submitted in a report under subsection (c) to the Director by the Stakeholder Advisory Committee by not later than 180 days after the date of submission of such report.

(e) Committee meetings

(f) Public meetings

(g) Travel expenses

A member of the Stakeholder Advisory Committee may be allowed travel expenses, including per diem in lieu of subsistence, at such rate as the Director determines to be appropriate while away from the home or regular place of business of the member in the performance of the duties of the Stakeholder Advisory Committee, including participation in a public meeting pursuant to subsection (f).

(h) Duration

The Stakeholder Advisory Committee shall remain in existence unless otherwise provided by law.

(a) In general

The Director shall establish a program to provide assistance to eligible local government entities, including making payments to temporarily replace eligible local revenues of such entities, using amounts made available to the Director in the Worker and Community Assistance Fund.

(b) Requirements

In implementing the program in subsection (a), the Director shall—

(c) Community adjustments to eligible local government entities

The Director shall make annual payments under this section to eligible local government entities to replace eligible local revenues due to the cessation of operations by impacted employers located within the jurisdiction of such local government entities.

(d) Order of payment

The date of submission of an eligible local government entity’s application for assistance shall establish the order in which assistance is paid to program applicants, except that in no event shall assistance be paid to a local government entity until such time that an impacted employer has been closed. Any local government entity seeking assistance under this section shall submit an affidavit to the Director that an impacted employer has ceased operating and an estimation of eligible local revenues. After receipt of such an affidavit under this subsection, the Director shall confirm such information.

(e) Conditions on payments and assistance

An eligible local government entity shall—

(f) Determination of payment amount

The amount of a payment under this section shall be determined by the Director based on the eligible local revenues from one or more impacted employers to an eligible local government entity equal to—

(g) Adjustment of payment amounts

Notwithstanding subsection (f), if the Director determines that the total amount of payments to eligible local government entities in any year would exceed the amount of funding made available to carry out this section for that year, the Director may reduce each eligible local government entity’s payment on a pro rata basis.

(h) Report to the director

An eligible local government entity receiving payment under this section shall be required to submit an annual report to the Director explaining the use of payments, including a description of funding used for—

(i) Community adjustments, economic development, and economic diversification planning

The Director may make grants and supplement other Federal funds in order to assist a county, municipality, school district, special district, or Tribal Government in planning for community adjustments, economic development, and economic diversification even if such entity is not currently eligible for assistance under this section if the Director determines that there exists a reasonable likelihood that such entity may become eligible in the future.

(j) Authorization of appropriations

There are authorized to be appropriated such sums as are necessary for carrying out this section.

(k) Definitions

In this section:

(a) In general

The Director shall establish a program to award grants to entities described in subsection (b), to be known as Community-Based Transition Hubs, to carry out the activities described in subsection (d), using amounts made available to the Director in the Worker and Community Assistance Fund.

(b) Eligibility

To be eligible to receive a grant under subsection (a), an entity shall demonstrate to the Director that the entity—

(c) Priorities

In awarding grants under this section, the Director shall prioritize grants to entities located in communities that—

(d) Duties

An entity that receives a grant under this section shall—

(e) Standards

The Director shall establish standards for grant recipients under this section, including provisions to ensure that any entity that receives a grant is qualified to engage in the activities described in this section.

(f) Fair and impartial information and services

The Director, in consultation with States, Tribal Governments, and relevant Federal agencies, shall develop standards to ensure that information made available by grant recipients under this section is accurate and shall provide such entities with relevant information and technical assistance to enable grant recipients under this section to better perform the duties in subsection (d).

(g) Limitations on grants

(h) Authorization of appropriations

There is authorized to be appropriated such sums as are necessary for carrying out this section.

(a) In general

Using amounts made available to the Secretary of Labor in the Worker and Community Assistance Fund, the Secretary of Labor shall provide assistance to each eligible adversely affected worker in accordance with this section.

(b) Petitions

(c) Eligibility

An adversely affected worker who works or has worked at an employment site of an impacted employer or a group of adversely affected workers from the same employment site of an impacted employer shall be certified by the Secretary of Labor as eligible to receive assistance under this section if the Secretary determines that the petition filed under subsection (b) by or on behalf of such individual or group demonstrates that—

(d) Determination by the Secretary of Labor

As soon as possible after the date on which a petition is filed under subsection (b) and not later than 60 days after that date, the Secretary of Labor, in consultation with the Administrator of the Environmental Protection Agency, as necessary, shall—

(e) Wage adjustment assistance

(f) Other assistance

(g) Fraud and recovery of overpayments