National Energy Community Transition Act of 2022
This bill establishes a federally chartered nonprofit corporation to assist communities that have historically relied on fossil fuel energy generation or extraction with transitioning away from that reliance.
The bill also endows the corporation initially with funds from the Treasury and then with a percentage of amounts received by the Treasury each year from fossil fuel and renewable energy leases on federal land. The corporation is responsible for investing its endowment and using a portion of the earnings to fund activities to assist communities with economic development and diversification and the provision of government services.
To establish the National Energy Transition Endowment and Community 
          Revitalization Corporation, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Energy Community Transition 
Act of 2022''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Average ending balance.--The term ``average ending 
        balance'', with respect to an account in the Endowment, means--
                    (A) for the first fiscal year during which the 
                Endowment is in operation, the actual ending balance of 
                the account;
                    (B) for the second fiscal year during which the 
                Endowment is in operation, the average of the fiscal 
                year ending balances of the account for that fiscal 
                year and the preceding fiscal year;
                    (C) for the third fiscal year during which the 
                Endowment is in operation, the average of the fiscal 
                year ending balances of the account for the 2-
                preceding-fiscal-year period; and
                    (D) for the fourth fiscal year during which the 
                Endowment is in operation, and for each fiscal year 
                thereafter, the average of the fiscal year ending 
                balances of the account for the 3-preceding-fiscal-year 
                period.
            (2) Board.--The term ``Board'' means the Board of Directors 
        of the Corporation.
            (3) Community development financial institution.--The term 
        ``community development financial institution'' has the meaning 
        given the term in section 103 of the Community Development 
        Banking and Financial Institutions Act of 1994 (12 U.S.C. 
        4702).
            (4) Corporation.--The term ``Corporation'' means the 
        Community Revitalization Corporation established by section 
        3(a).
            (5) Eligible community.--The term ``eligible community'' 
        means--
                    (A) a community experiencing or likely to 
                experience an economic or workforce transition relating 
                to changes in applicable--
                            (i) fossil fuel electricity generation; or
                            (ii) fossil fuel extraction, development, 
                        or demand; and
                    (B) a community experiencing or likely to 
                experience a decline in fossil fuel-related revenue.
            (6) Endowment.--The term ``Endowment'' means the National 
        Energy Transition Endowment Fund established by section 
        4(a)(1).
            (7) Energy community hub.--The term ``energy community 
        hub'' means a place-based organization (including a nonprofit 
        entity, community development financial institution, regional 
        economic development authority, or other community-based 
        organization, as determined to be appropriate by the 
        Corporation) that--
                    (A) facilitates economic and community development 
                in an eligible community; and
                    (B) provides necessary capacity and experience to 
                implement a transition program for 1 or more eligible 
                communities.
            (8) Transition program.--The term ``transition program'' 
        means a program described in section 5(a)(2) or paragraph (3) 
        or (4) of section 5(b).

SEC. 3. ESTABLISHMENT OF THE COMMUNITY REVITALIZATION CORPORATION.

    (a) In General.--There is established a federally chartered, 
nonprofit corporation, to be known as the ``Community Revitalization 
Corporation''.
    (b) Status and Applicable Laws.--
            (1) Non-federal entity.--The Corporation is not a 
        department, agency, or instrumentality of the United States 
        Government.
            (2) Liability.--The United States Government shall not be 
        liable for the actions or inactions of the Corporation.
            (3) Nonprofit corporation.--The Corporation shall have and 
        maintain the status of the Corporation as a nonprofit 
        corporation exempt from taxation under the Internal Revenue 
        Code of 1986.
    (c) Board of Directors.--
            (1) Authority.--The powers of the Corporation shall be 
        vested in a Board of Directors that governs the Corporation.
            (2) Membership.--
                    (A) In general.--The Board shall be composed of not 
                fewer than 7 but not more than 11 members, who shall be 
                appointed by the President, not later than 90 days 
                after the date of enactment of this Act, by and with 
                the advice and consent of the Senate.
                    (B) Qualifications of members.--
                            (i) In general.--Subject to clauses (ii) 
                        and (iii), in making appointments under 
                        subparagraph (A), the President shall ensure 
                        that the membership of the Board--
                                    (I) includes--
                                            (aa) members from eligible 
                                        communities;
                                            (bb) members with relevant 
                                        economic development 
                                        experiences with--

                                                    (AA) eligible 
                                                communities;

                                                    (BB) underserved 
                                                rural communities in 
                                                economic distress; and

                                                    (CC) 
                                                underrepresented 
                                                minority communities, 
                                                such as indigenous 
                                                communities, Tribal 
                                                communities, or 
                                                communities of color; 
                                                and

                                            (cc) members representing a 
                                        recognized State labor 
                                        organization or central labor 
                                        council or other labor 
                                        representatives, as 
                                        appropriate; and
                                    (II) has not more than a 1-member 
                                majority from any political party.
                            (ii) Prohibition.--A member of the Board 
                        shall not hold an office, position, or 
                        employment in any political party.
                            (iii) Initial members.--The President shall 
                        ensure that the initial membership of the Board 
                        includes a representative of each of the 
                        Northern Rocky Mountain region, the Four 
                        Corners region, the Mid-Continental Gulf Coast 
                        region, the Illinois Basin region, the 
                        Appalachian region, and the Alaska region, as 
                        described in the report prepared by the 
                        Interagency Working Group on Coal and Power 
                        Plant Communities and Economic Revitalization 
                        entitled ``Initial Report to the President on 
                        Empowering Workers Through Revitalizing Energy 
                        Communities'' and dated April 2021.
                    (C) Terms.--
                            (i) In general.--A member of the Board 
                        shall be appointed for a term of 4 years, 
                        except that the President shall designate 
                        staggered terms for the members first appointed 
                        to the Board.
                            (ii) Reappointment.--A member of the Board 
                        may be reappointed to serve an additional term, 
                        subject to the condition that the member may 
                        serve for not more than 2 consecutive terms.
                    (D) Vacancies.--
                            (i) In general.--A vacancy on the Board 
                        shall be--
                                    (I) filled in the manner in which 
                                the original appointment was made; and
                                    (II) subject to any conditions that 
                                applied with respect to the original 
                                appointment.
                            (ii) Filling unexpired term.--An individual 
                        chosen to fill a vacancy shall be appointed for 
                        the unexpired term of the member replaced.
                    (E) Expiration of terms.--Any member of the Board 
                may continue to serve after the expiration of the term 
                for which the member was appointed until a qualified 
                successor has been appointed.
            (3) Chairperson.--
                    (A) In general.--The Chairperson of the Board shall 
                be selected from among the members of the Board by a 
                majority vote of the members.
                    (B) Term of service.--The Chairperson of the 
                Board--
                            (i) shall serve for a term of not longer 
                        than 4 years; and
                            (ii) may be reelected to serve an 
                        additional term, subject to the condition that 
                        the Chairperson may serve for not more than 2 
                        consecutive terms.
            (4) Consultation.--To the maximum extent practicable, in 
        carrying out the duties of the Corporation under subsection 
        (d)(3), the Board shall engage regional economic development 
        entities and energy community hubs to solicit and consider 
        input and feedback relating to decisions impacting the 1 or 
        more regions the entity represents.
    (d) Bylaws and Duties.--
            (1) In general.--The Board shall adopt, and may amend, the 
        bylaws of the Corporation.
            (2) Bylaws.--The bylaws of the Corporation shall include, 
        at a minimum--
                    (A) the duties and responsibilities of the Board; 
                and
                    (B) the operational procedures of the Corporation.
            (3) Duties and responsibilities of board.--The Board shall 
        be responsible for actions of the Corporation, including--
                    (A) hiring staff to carry out the functions of the 
                Corporation;
                    (B) entering into contracts with fund management 
                and investment professionals to manage the Endowment;
                    (C) making formula payments under section 5(a)(2);
                    (D) making grants in accordance with section 
                5(b)(3);
                    (E) monitoring Federal and State policies relevant 
                to rural and transitioning communities;
                    (F) coordinating (including through entering into 
                contracts), as appropriate, with relevant agencies, 
                institutions, energy community hubs, and other entities 
                that provide economic, training, and capacity 
                assistance to eligible communities consistent with the 
                duties under subparagraphs (C), (D), (H), and (I);
                    (G) creating and maintaining accessible electronic 
                materials targeted towards eligible communities, 
                including up-to-date, user-friendly information on--
                            (i) the programs and activities carried out 
                        by the Corporation; and
                            (ii) other relevant Federal programs that 
                        provide economic assistance to eligible 
                        communities or other similar transitioning 
                        communities;
                    (H) making public investments in accordance with 
                section 5(b)(4); and
                    (I) monitoring, assessing, and reporting on 
                outcomes of--
                            (i) any financial assistance provided under 
                        a transition program; and
                            (ii) any public investment made under 
                        section 5(b)(4).
            (4) Chief executive officer.--The Board shall select and 
        hire a Chief Executive Officer, who shall report directly to 
        the Board.

SEC. 4. ESTABLISHMENT OF ENDOWMENT AND INVESTMENT STRATEGY.

    (a) Endowment Fund.--
            (1) In general.--There is established within the 
        Corporation an endowment, to be known as the ``National Energy 
        Transition Endowment Fund'', consisting of--
                    (A) amounts deposited in the Endowment under 
                paragraph (3) and subsection (b)(3)(B);
                    (B) income from investments of amounts in the 
                Endowment under paragraph (4); and
                    (C) amounts transferred to the Endowment under 
                subsection (c).
            (2) Accounts.--Within the Endowment, there are established 
        the following accounts:
                    (A) The Transitioning Communities Permanent 
                Account, consisting of the amounts described in 
                subparagraphs (A) and (B) of paragraph (1).
                    (B) The Transitioning Communities Benefit Account, 
                consisting of the amounts described in paragraph 
                (1)(C).
            (3) Deposit.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary of the Treasury shall 
        deposit in the Endowment, out of amounts in the Treasury not 
        otherwise appropriated, $20,000,000,000.
            (4) Investments.--In accordance with the investment 
        strategy developed under subsection (b)(1), the Board shall 
        invest the principal balance of the Endowment.
    (b) Investments.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Board shall establish an investment 
        strategy for amounts in the Endowment that--
                    (A) protects the principal balance of the Endowment 
                from inflation through such measures as the Board 
                determines to be necessary to maintain in perpetuity 
                the inflation-adjusted value of all deposits into the 
                Endowment under subparagraphs (A) and (C) of subsection 
                (a)(1); and
                    (B) to the maximum extent practicable, achieves a 
                return on investment of 5 percent (net of inflation) to 
                finance--
                            (i) disbursements to eligible entities 
                        under section 5(a)(2); and
                            (ii) the administration of the Corporation 
                        under paragraph (3)(A).
            (2) Investment of principal balance.--Of the principal 
        balance of the Endowment, the Board shall invest--
                    (A) an amount equal to not less than 85 percent, 
                and not more than 90 percent, in a diversified 
                portfolio of stocks and bonds; and
                    (B) an amount equal to not less than 10 percent, 
                and not more than 15 percent, in investments that 
                leverage the purposes of disbursements from the 
                Endowment authorized under section 5.
            (3) Administrative funds.--
                    (A) In general.--For each fiscal year, the Board 
                may disburse to the Corporation from the Transitioning 
                Communities Permanent Account, for the administrative 
                expenses of the Corporation, not more than the amount 
                equal to the product obtained by multiplying--
                            (i) the average ending balance of the 
                        Transitioning Communities Permanent Account 
                        with respect to that fiscal year; and
                            (ii) 0.5 percent.
                    (B) Excess funds.--If the amount of the actual 
                administrative expenses of the Corporation for a fiscal 
                year is less than the amount disbursed to the 
                Corporation for the fiscal year under subparagraph (A), 
                an amount equal to the difference between those amounts 
                shall be deposited in the Endowment.
    (c) Transfers to Endowment From Energy and Natural Resources 
Leasing.--Each fiscal year, the Secretary of the Treasury shall 
transfer to the Endowment an amount equal to 33 percent of amounts in 
the Treasury received from fossil fuel extraction and production 
leasing and renewable energy resource leasing on Federal land for that 
fiscal year and not otherwise obligated.
    (d) Reports.--The Corporation shall submit to Congress, and make 
available to the public (including any eligible entities that receive 
financial assistance under a transition program)--
            (1) a quarterly report on Endowment investment outcomes; 
        and
            (2) an annual report describing disbursements from the 
        Endowment, including how amounts were allocated under the 
        transition programs.
    (e) Oversight.--Annually, the Inspectors General of the Department 
of the Interior and the Department of the Treasury shall conduct a 
review of the management of the Endowment by the Corporation.

SEC. 5. DISBURSEMENTS FROM ENDOWMENT.

    (a) Transitioning Communities Permanent Account.--
            (1) Availability of amounts.--Not later than September 30 
        of each fiscal year, in accordance with paragraph (2), the 
        Board shall make available from the Transitioning Communities 
        Permanent Account an amount equal to the product obtained by 
        multiplying--
                    (A) the average ending balance of the Transitioning 
                Communities Permanent Account with respect to that 
                fiscal year; and
                    (B) 4.5 percent.
            (2) Formula distribution.--
                    (A) Definition of eligible entity.--In this 
                paragraph, the term ``eligible entity'' means a 
                municipal, county, or Tribal government that represents 
                an eligible community.
                    (B) Allocation.--The Corporation shall allocate the 
                amount made available from the Transitioning 
                Communities Permanent Account under paragraph (1) each 
                fiscal year to eligible entities pursuant to 
                subparagraph (C).
                    (C) Formula.--
                            (i) In general.--The Corporation shall 
                        establish a formula to allocate amounts made 
                        available from the Transitioning Communities 
                        Permanent Account each fiscal year under 
                        subparagraph (B) directly to eligible entities.
                            (ii) Requirement.--To the maximum extent 
                        practicable, in establishing the formula under 
                        clause (i), the Corporation shall use as a 
                        model existing formulas established by the 
                        Treasury, if available and as applicable.
                    (D) Review and public comment.--
                            (i) In general.--The Board shall review the 
                        formula established under subparagraph (C) not 
                        less frequently than once every 3 years.
                            (ii) Public comment.--The results of the 
                        review conducted under clause (i), including 
                        any recommended changes to the formula made by 
                        the Board, shall be subject to a period of 
                        public comment of not less than 30 days.
                    (E) Formula criteria.--The formula established 
                under subparagraph (C) or modified under subparagraph 
                (D) shall--
                            (i) be designed to reflect eligible 
                        communities; and
                            (ii) take into account revenue declines 
                        that--
                                    (I) have occurred during the 20-
                                year period ending on, as applicable--
                                            (aa) the date of enactment 
                                        of this Act; or
                                            (bb) the date of the 
                                        applicable review under 
                                        subparagraph (D)(i); and
                                    (II) are projected to occur during 
                                the 10-year period beginning on, as 
                                applicable--
                                            (aa) the date of enactment 
                                        of this Act; or
                                            (bb) the date of the 
                                        applicable review under 
                                        subparagraph (D)(i).
                    (F) Priority.--
                            (i) Definition of officially announced 
                        closure.--In this subparagraph, the term 
                        ``officially announced closure'' means--
                                    (I) in the case of the closure of a 
                                fossil fuel energy-generating unit or 
                                facility, a notice of closure filed 
                                with--
                                            (aa) the Energy Information 
                                        Administration; or
                                            (bb) a relevant regional 
                                        reliability regulator, 
                                        including a Regional 
                                        Transmission Organization, 
                                        Independent System Operator, or 
                                        State public utility 
                                        commission; and
                                    (II) in the case of the closure of 
                                a coal mine that provides coal for an 
                                electric power plant for which a notice 
                                of closure has been filed under 
                                subclause (I), a notice of closure that 
                                includes supporting documentation from 
                                form 923 of the Energy Information 
                                Administration (or a successor form).
                            (ii) Priority.--In establishing the formula 
                        under subparagraph (C), the Corporation shall 
                        prioritize eligible entities located in 
                        eligible communities experiencing or likely to 
                        experience an acute fiscal crisis associated 
                        with the loss of revenue resulting from--
                                    (I) the closure or officially 
                                announced closure of 1 or more fossil 
                                fuel energy-generating units or 
                                facilities; or
                                    (II) the decline or cessation of 
                                fossil fuel extraction activities.
                    (G) Considerations.--In establishing the formula 
                under subparagraph (C), the Corporation shall consider 
                community characteristics, including social and 
                economic measures of income, poverty, education, 
                geographic isolation, and other characteristics 
                identified by the Corporation.
                    (H) Use of funds.--An eligible entity may use 
                amounts received under this paragraph for any 
                governmental purpose.
    (b) Transitioning Communities Permanent Account.--
            (1) Availability of amounts.--Not later than September 30 
        of each fiscal year, in accordance with paragraphs (2) through 
        (4), the Board shall make available from the Transitioning 
        Communities Benefit Account an amount equal to the product 
        obtained by multiplying--
                    (A) the average ending balance of the Transitioning 
                Communities Benefit Account with respect to that fiscal 
                year; and
                    (B) 4.5 percent.
            (2) Allocation.--The Corporation shall allocate the amount 
        made available from the Transitioning Communities Benefit 
        Account under paragraph (1) each fiscal year--
                    (A) to provide grants to eligible entities pursuant 
                to the transition program described in paragraph (3); 
                and
                    (B) for public investment pursuant to the 
                transition program described in paragraph (4).
            (3) Capacity building; planning and implementation 
        grants.--
                    (A) Definition of eligible entity.--In this 
                paragraph, the term ``eligible entity'' includes--
                            (i) a municipal, county, or Tribal 
                        government;
                            (ii) an energy community hub; and
                            (iii) any other entity that represents 
                        eligible communities, as determined to be 
                        appropriate by the Corporation.
                    (B) Priority; limitation.--
                            (i) Priority.--Priority for grants under 
                        this paragraph shall be given to eligible 
                        entities carrying out activities in eligible 
                        communities that have limited capacity to apply 
                        for or otherwise access Federal funding, as 
                        determined by the Corporation.
                            (ii) Limitation.--In the case of an 
                        eligible entity described in clause (ii) or 
                        (iii) of subparagraph (A), a grant under this 
                        paragraph may only be provided to the eligible 
                        entity if the applicable municipal, county, or 
                        Tribal government submits to the Corporation, 
                        in writing, a statement that the applicable 
                        municipal, county, or Tribal government 
                        supports the grant for the eligible entity.
                    (C) Training and technical assistance.--Each fiscal 
                year, out of amounts made available from the 
                Transitioning Communities Benefit Account under 
                paragraph (2)(A), the Corporation shall provide to 
                eligible entities technical assistance to apply for or 
                otherwise access Federal funding, including capacity-
                building grants under subparagraph (D) and planning and 
                implementation grants under subparagraph (E).
                    (D) Capacity-building grants.--Each fiscal year, 
                out of amounts made available from the Transitioning 
                Communities Benefit Account under paragraph (2)(A), the 
                Corporation shall make noncompetitive capacity-building 
                grants to each eligible entity to assist with 
                developing strategic transition plans necessary to 
                receive additional competitive grants and financing 
                opportunities.
                    (E) Planning and implementation grants.--
                            (i) Grants.--Each fiscal year, out of 
                        amounts made available from the Transitioning 
                        Communities Benefit Account under paragraph 
                        (2)(A), the Corporation shall make competitive, 
                        multiyear grants to eligible entities to fund--
                                    (I) strategic transition planning 
                                activities in eligible communities;
                                    (II) the implementation of 
                                transition plans in eligible 
                                communities; and
                                    (III) transition projects in 
                                eligible communities, including 
                                workforce retraining and community 
                                development projects.
                            (ii) Strategy for data collection, 
                        monitoring, and reporting.--In carrying out 
                        this subparagraph, the Corporation shall 
                        develop a strategy to assist eligible entities 
                        receiving grants under this subparagraph with 
                        any applicable data collection, monitoring, and 
                        reporting requirements.
                            (iii) Assessment by corporation.--To ensure 
                        transparency and improve the transfer and 
                        understanding of transition planning and 
                        implementation outcomes, the Corporation shall 
                        compile, conduct assessments of, and report on 
                        data provided by eligible entities provided 
                        grants under this subparagraph, in accordance 
                        with section 3(d)(3)(I).
            (4) Public investment.--
                    (A) In general.--Each fiscal year, out of amounts 
                made available from the Transitioning Communities 
                Benefit Account under paragraph (2)(B), the Corporation 
                shall make public investments in public or private 
                projects carried out in eligible communities that 
                leverage transition programs funded under paragraph 
                (3).
                    (B) Consultation.--The Corporation may carry out 
                subparagraph (A) in consultation with the staff of the 
                Corporation, community development financial 
                institutions, public benefit corporations, entities 
                that provide philanthropic funding, energy community 
                hubs, and other partners to invest capital in 
                businesses and infrastructure in eligible communities.
                    (C) Requirement for return on investment.--To the 
                maximum extent practicable, the Corporation shall 
                ensure that the entire portfolio of transition 
                investments under subparagraph (A) contributes to a 
                return to the Endowment that achieves the target 
                described in section 4(b)(1)(B).
                                 <all>
National Energy Community Transition Act of 2022
A bill to establish the National Energy Transition Endowment and Community Revitalization Corporation, and for other purposes.
National Energy Community Transition Act of 2022
Sen. Bennet, Michael F.