Clean Energy Future Through Innovation Act of 2021
This bill establishes a variety of incentives and programs to reduce carbon dioxide emissions from the power sector, including incentives and programs to (1) develop low- and zero-carbon power technologies (e.g., technologies to capture, use, and store carbon from coal and natural gas); (2) support certain renewable energy, energy-efficiency, energy storage, and clean electricity technologies; and (3) support nuclear energy.
To advance clean power technology development and use through 
     innovation and clean energy standards, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Clean Energy Future Through 
Innovation Act of 2021''.

SEC. 2. DEFINITIONS; TABLE OF CONTENTS.

    (a) Definitions.--In this Act:
            (1) Commission.--The term ``Commission'' means the Federal 
        Energy Regulatory Commission.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title.
Sec. 2. Definitions; table of contents.
           TITLE I--CARBON CAPTURE, UTILIZATION, AND STORAGE

    Subtitle A--Research, Development, and Demonstration for Carbon 
             Capture, Utilization, and Storage Technologies

Sec. 101. Fossil energy objectives.
Sec. 102. Carbon capture technologies.
Sec. 103. Carbon storage validation and testing.
Sec. 104. Carbon utilization.
Sec. 105. Advanced energy systems.
Subtitle B--Deployment of Carbon Capture, Utilization, and Storage With 
           Commercial-Scale Electricity Generation Facilities

Sec. 111. Deployment of carbon capture, utilization, and storage 
                            technology with commercial-scale 
                            electricity generation facilities.
    Subtitle C--Federal Support for Commercial Deployment of Carbon 
                   Capture, Utilization, and Storage

Sec. 121. Enhancement of carbon dioxide sequestration credit.
Sec. 122. Reform of loan guarantee program.
Sec. 123. Private activity bonds for carbon dioxide capture facilities.
Sec. 124. Extension of publicly traded partnership ownership structure.
Sec. 125. Production tax credit for certain electricity generation 
                            using carbon capture utilization and 
                            storage.
Sec. 126. Elective payment of credit.
Sec. 127. Allowance of the carbon oxide sequestration credit against 
                            the base erosion minimum tax.
Sec. 128. Modification of merchant banking investment regulation.
Subtitle D--Support for Carbon Dioxide Transportation and Sequestration 
                             Infrastructure

Sec. 131. Facilities for carbon dioxide transportation and 
                            sequestration.
Sec. 132. Carbon dioxide sequestration utilities.
   TITLE II--INNOVATION IN RENEWABLE ENERGY, ENERGY EFFICIENCY, AND 
                                STORAGE

Sec. 201. Establishment of technology performance and cost targets.
Sec. 202. Advanced innovation and commercialization program.
Sec. 203. Updating manufactured homes.
Sec. 204. Investment tax credits for energy battery storage, offshore 
                            wind, and certain hydropower technologies.
Sec. 205. Extension of production tax credit for solar and on-shore 
                            wind.
Sec. 206. Renewal of qualifying advanced energy project credit.
Sec. 207. Performance-based tax credits for commercial and residential 
                            buildings.
Sec. 208. Extension of publicly traded partnership ownership structure 
                            to renewable energy projects.
Sec. 209. Manufacturer credit for high-efficiency heat pumps and heat 
                            pump water heaters.
Sec. 210. Other authorizations of appropriations.
         TITLE III--EXISTING AND ADVANCED NUCLEAR POWER PLANTS

Sec. 301. Zero-emissions credit program.
Sec. 302. Investment tax credit for nuclear energy property.
Sec. 303. Expanding Federal clean electricity purchasing requirements.
Sec. 304. Modernizing the Nuclear Regulatory Commission.
Sec. 305. Demonstration and early deployment of advanced nuclear 
                            reactors.
Sec. 306. Authorization of appropriations for loan guarantees for 
                            advanced nuclear facilities.
Sec. 307. Expanding the production tax credit for nuclear power.
                  TITLE IV--CLEAN ELECTRICITY STANDARD

Sec. 401. Certification of cost-effective market penetration of clean 
                            electricity technologies.
Sec. 402. Federal clean electricity standard.
Sec. 403. Regional clean electricity planning models.
Sec. 404. Stand-by emission performance standards.
                         TITLE V--MISCELLANEOUS

Sec. 501. Additional requirements.
Sec. 502. Utilization of qualified apprentices by construction 
                            contractors.
Sec. 503. Requirements applicable to tax incentive programs.

           TITLE I--CARBON CAPTURE, UTILIZATION, AND STORAGE

    Subtitle A--Research, Development, and Demonstration for Carbon 
             Capture, Utilization, and Storage Technologies

SEC. 101. FOSSIL ENERGY OBJECTIVES.

    Section 961 of the Energy Policy Act of 2005 (42 U.S.C. 16291) is 
amended--
            (1) in subsection (a)(2), by adding at the end the 
        following subparagraph:
                    ``(M) Preventing, predicting, monitoring, and 
                mitigating the unintended leaking of carbon dioxide or 
                other fossil fuel-related emissions into the 
                atmosphere.''; and
            (2) by amending subsection (b) to read as follows:
    ``(b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out fossil energy research, 
development, demonstration, and commercial application activities, 
including activities authorized under this subtitle, $2,200,000,000 for 
each of fiscal years 2022 through 2031.''.

SEC. 102. CARBON CAPTURE TECHNOLOGIES.

    Section 962 of the Energy Policy Act of 2005 (42 U.S.C. 16292) is 
amended--
            (1) in subsection (e)--
                    (A) in paragraph (2)--
                            (i) by striking ``and'' at the end of 
                        subparagraph (B);
                            (ii) by striking the period at the end of 
                        subparagraph (C) and inserting ``; and''; and
                            (iii) by adding at the end the following:
                    ``(D) test technologies that represent the scale of 
                technology development beyond laboratory testing, but 
                not yet advanced to testing under operational 
                conditions at commercial scale.'';
                    (B) in paragraph (3)(C)--
                            (i) in clause (i), by inserting 
                        ``precombustion, postcombustion, or oxy-
                        combustion'' after ``facilities for'';
                            (ii) in clause (ii), by striking ``; or'' 
                        and inserting a semicolon;
                            (iii) in clause (iii), by striking the 
                        period at the end and inserting a semicolon; 
                        and
                            (iv) by adding at the end the following:
                            ``(iv) have capability to test integration 
                        of carbon capture technologies with utility-
                        scale power plants; or
                            ``(v) have commercial market participants, 
                        including equipment and technology suppliers 
                        and power generators, involved in the proposed 
                        Center.''; and
                    (C) by redesignating paragraph (7) as paragraph 
                (8), and inserting after paragraph (6) the following:
            ``(7) Cost sharing.--The Secretary shall require cost 
        sharing under this subsection in accordance with section 
        988(b).''; and
            (2) by adding at the end the following:
    ``(f) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out this section $600,000,000 
for each of fiscal years 2022 through 2031.''.

SEC. 103. CARBON STORAGE VALIDATION AND TESTING.

    Section 963 of the Energy Policy Act of 2005 (42 U.S.C. 16293) is 
amended--
            (1) in subsection (b), by adding at the end the following:
            ``(4) Federal data collection.--The Secretary, in 
        coordination with other Federal agencies including the United 
        States Geological Survey, shall continue and expand ongoing 
        Federal data collection and analysis activities related to 
        carbon dioxide storage, economics, and spatial relationships on 
        a local and regional scale, in coordination with State and 
        regional entities.''; and
            (2) by amending subsection (g) to read as follows:
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out this section--
            ``(1) $200,000,000 for fiscal year 2021; and
            ``(2) $250,000,000 for each of fiscal years 2022 through 
        2031.''.

SEC. 104. CARBON UTILIZATION.

    Section 969A(d) of the Energy Policy Act of 2005 (42 U.S.C. 
16298a(d)) is amended to read as follows:
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out this section--
            ``(1) $54,000,000 for fiscal year 2021; and
            ``(2) $75,000,000 for each of fiscal years 2022 through 
        2031.''.

SEC. 105. ADVANCED ENERGY SYSTEMS.

    (a) Advanced Energy Systems.--Subtitle F of title IX of the Energy 
Policy Act of 2005 (42 U.S.C. 16291 et seq.) is further amended by 
adding at the end the following:

``SEC. 969E. ADVANCED ENERGY SYSTEMS.

    ``(a) In General.--The Secretary shall carry out a program of 
research, development, demonstration, and commercial application of 
technologies that represent a significant change in the methods used to 
generate electricity from fuels and that will enable a step change in 
performance, efficiency, and cost of electricity, and that reduce 
emissions from fossil fuel power generation in the following areas:
            ``(1) Supercritical carbon dioxide, with an emphasis on 
        developing directly fired and indirectly fired cycles in the 
        next 10 years.
            ``(2) Advanced combustion systems, including oxy-combustion 
        systems and chemical looping.
            ``(3) Gasification systems to enable carbon capture, 
        improve efficiency, and reduce capital and operating costs.
            ``(4) Thermal cycling with ramping or rapid black start 
        capabilities that do not compromise efficiency or environmental 
        performance.
            ``(5) Small-scale and modular technologies with reduced 
        carbon dioxide outputs or carbon capture that can support 
        incremental power generation capacity needs.
            ``(6) Turbines, boilers, fuel cells, or other systems that 
        utilize hydrogen or ammonia derived from coal or natural gas to 
        make electricity.
            ``(7) Systems that remove 98 percent or more of the carbon 
        dioxide from the emissions of a power plant.
    ``(b) Priority.--In carrying out the program under subsection (a), 
the Secretary shall give priority to potentially transformational 
technologies that would enable very substantial improvements in 
performance, efficiency, or cost of electricity as compared to the 
technology in existence on the date of enactment of this section.
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out this section $1,275,000,000 
for each of fiscal years 2022 through 2031.''.
    (b) Technical Amendment.--The table of contents for the Energy 
Policy Act of 2005 (Public Law 109-58; 119 Stat. 600) is amended by 
adding at the end of the items relating to subtitle F of title IX the 
following:

``Sec. 969E. Advanced energy systems.''.

Subtitle B--Deployment of Carbon Capture, Utilization, and Storage With 
           Commercial-Scale Electricity Generation Facilities

SEC. 111. DEPLOYMENT OF CARBON CAPTURE, UTILIZATION, AND STORAGE 
              TECHNOLOGY WITH COMMERCIAL-SCALE ELECTRICITY GENERATION 
              FACILITIES.

    (a) In General.--Subtitle B of title IV of the Energy Policy Act of 
2005 (42 U.S.C. 15971 et seq.) is amended by adding after section 417 
the following:

``SEC. 418. FEDERAL SUPPORT FOR DEPLOYMENT OF CARBON CAPTURE, 
              UTILIZATION, AND STORAGE WITH ELECTRICITY GENERATION.

    ``(a) In General.--Subject to the limitations in subsection (b), 
the Secretary shall support the deployment and use of carbon capture, 
utilization, and storage at eligible power systems by entering into 
contracts for differences with owners or operators of eligible power 
systems to provide price certainty for the sale of the electricity 
generated by, or carbon dioxide captured by, such eligible power 
systems to third parties.
    ``(b) Limitations.--The Secretary may not enter into contracts for 
differences under subsection (a)--
            ``(1) with a term of more than 30 years;
            ``(2) for the output of eligible power systems with a 
        cumulative electricity generating capacity of more than 11 
        gigawatts; and
            ``(3) in a cumulative amount projected to have a value 
        exceeding $10,000,000,000.
    ``(c) Application.--
            ``(1) In general.--The owner or operator of an eligible 
        power system seeking to enter into a contract for differences 
        under subsection (a) shall submit to the Secretary an 
        application at such time and in such manner as the Secretary 
        may require.
            ``(2) Criteria.--In evaluating such an application, the 
        Secretary shall consider technical, financial, and other 
        factors that the Secretary determines appropriate.
    ``(d) Prioritization.--In implementing subsection (a), the 
Secretary shall prioritize supporting--
            ``(1) the use of carbon capture, utilization, and storage 
        at eligible power systems covering diverse fossil fuel types 
        and technologies, including first-of-a-kind technology for 
        carbon capture, utilization, and storage capacity; and
            ``(2) eligible power systems with at least 5.5 gigawatts of 
        cumulative electricity generating capacity that will be in 
        operation by 2030, and ensure that the remaining eligible power 
        systems receiving support will be under construction by not 
        later than 2030.
    ``(e) Definitions.--In this section:
            ``(1) Power system.--The term `power system' means a 
        commercial-scale electricity generating unit that utilizes 
        fossil fuels to generate electricity that is provided to the 
        electric grid or directly to a consumer.
            ``(2) Eligible power system.--The term `eligible power 
        system' means a power system that--
                    ``(A) is equipped with carbon capture technology, 
                or otherwise produces a separate carbon dioxide stream 
                that is suitable for utilization or storage;
                    ``(B) is designed to capture carbon dioxide that 
                would otherwise be emitted to the atmosphere; and
                    ``(C) will utilize or store the captured carbon 
                dioxide, or has contracted with one or more other 
                entities to utilize or store the captured carbon 
                dioxide.''.
    (b) Clerical Amendment.--The table of contents for the Energy 
Policy Act of 2005 is amended by adding after the item relating to 
section 417 the following:

``Sec. 418. Federal support for deployment of carbon capture, 
                            utilization, and storage with electricity 
                            generation.''.

    Subtitle C--Federal Support for Commercial Deployment of Carbon 
                   Capture, Utilization, and Storage

SEC. 121. ENHANCEMENT OF CARBON DIOXIDE SEQUESTRATION CREDIT.

    (a) Extension of Credit Period.--Section 45Q(a) of the Internal 
Revenue Code of 1986 is amended by striking ``12-year'' each place it 
appears and inserting ``20-year''.
    (b) Extension of Qualified Facility Construction Beginning Date.--
Section 45Q(d)(1) of such Code is amended by striking ``January 1, 
2026'' and inserting ``January 1, 2036''.
    (c) Enhancement of Credit Value.--
            (1) Section 45Q(b)(1)(A)(ii)(I) is amended by striking 
        ``$50'' and inserting ``$85''.
            (2) Section 45Q(b)(1)(A)(ii)(II) is amended by striking 
        ``$35'' and inserting ``$70''.
    (d) Effective Date.--The amendments made by this section shall 
apply to carbon dioxide captured after December 31, 2020.

SEC. 122. REFORM OF LOAN GUARANTEE PROGRAM.

    Section 1703 of the Energy Policy Act of 2005 (42 U.S.C. 16513) is 
amended--
            (1) by striking subsection (e) and inserting the following:
    ``(e) Qualification of Facilities Receiving Tax Credits or 
Financial Assistance.--Notwithstanding any other provision of law, a 
project that receives tax credits or other financial assistance for 
clean coal technology shall not be disqualified from receiving a 
guarantee under this subchapter.''; and
            (2) by inserting the following new subsection after 
        subsection (e):
    ``(f) Implemention.--In implementing the authority under this 
section with respect to loan guarantees issued after the date of 
enactment of the Clean Energy Future Through Innovation Act of 2021, 
the Secretary shall--
            ``(1) adjust fees and application requirements to the scale 
        of a project to ensure that the costs of preparing and 
        submitting an application are not an undue barrier to 
        participation by smaller, lower risk projects;
            ``(2) ensure that program credit rating requirements do 
        not, as applied, act as an obstacle to participation in the 
        loan guarantee program by first-of-a-kind projects, consistent 
        with the purpose of the loan guarantee program to enable debt 
        financing for first-of-a-kind projects that would not otherwise 
        have access to commercial debt markets; and
            ``(3) for first-of-a-kind projects, cover the cost of the 
        guarantee with appropriated funds rather than requiring the 
        borrower to pay some or all of the cost of the guarantee under 
        section 1702(b).''.

SEC. 123. PRIVATE ACTIVITY BONDS FOR CARBON DIOXIDE CAPTURE FACILITIES.

    (a) In General.--Section 142(a) of the Internal Revenue Code of 
1986 is amended by striking ``or'' at the end of paragraph (14), by 
striking the period at the end of paragraph (15) and inserting ``, 
or'', and by adding at the end the following new paragraph:
            ``(16) qualified carbon dioxide capture facilities.''.
    (b) Qualified Carbon Dioxide Capture Facility.--Section 142 of such 
Code is amended by adding at the end the following new subsections:
    ``(n) Qualified Carbon Dioxide Capture Facility.--
            ``(1) In general.--For purposes of subsection (a)(16), the 
        term `qualified carbon dioxide capture facility' means the 
        eligible components of an industrial carbon dioxide facility.
            ``(2) Definitions.--For purposes of this subsection--
                    ``(A) Eligible component.--The term `eligible 
                component' means, with respect to any industrial carbon 
                dioxide facility, any component installed in such 
                facility that--
                            ``(i) satisfies the requirements under 
                        paragraph (3), and
                            ``(ii)(I) is used for the purpose of 
                        capture, treatment and purification, 
                        compression, transportation, or on-site storage 
                        of carbon dioxide produced by such facility, or
                            ``(II) is integral or functionally related 
                        and subordinate to a process described in 
                        section 48B(c)(2) (determined by substituting 
                        `carbon dioxide' for `carbon monoxide').
                    ``(B) Industrial carbon dioxide facility.--
                            ``(i) In general.--The term `industrial 
                        carbon dioxide facility' means a facility that 
                        emits carbon dioxide (including from any 
                        fugitive emissions source) that is created as a 
                        result of any of the following processes:
                                    ``(I) Fuel combustion for 
                                electricity generation or other 
                                purposes.
                                    ``(II) Gasification for electricity 
                                generation or other purposes.
                                    ``(III) Bioindustrial.
                                    ``(IV) Fermentation.
                                    ``(V) Any manufacturing industry 
                                described in section 48B(c)(7).
                            ``(ii) Exceptions.--Such term shall not 
                        include--
                                    ``(I) any geological gas facility, 
                                or
                                    ``(II) any air separation unit that 
                                does not qualify as gasification 
                                equipment or is not a necessary 
                                component of an oxy-fuel combustion 
                                process, a supercritical carbon dioxide 
                                process, or other advanced power 
                                system.
                            ``(iii) Geological gas facility.--The term 
                        `geological gas facility' means a facility 
                        that--
                                    ``(I) produces a raw product 
                                consisting of gas or mixed gas and 
                                liquid from a geological formation,
                                    ``(II) transports or removes 
                                impurities from such product, or
                                    ``(III) separates such product into 
                                its constituent parts.
            ``(3) Capture and storage requirement.--For purposes of 
        this subsection--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), a component shall not be treated as 
                meeting the requirements of this paragraph with respect 
                to an industrial carbon dioxide facility unless such 
                component has a capture and storage percentage that is 
                at least 65 percent.
                    ``(B) Exception.--In the case of an industrial 
                carbon dioxide facility with a capture and storage 
                percentage that is less than 65 percent, a component 
                with respect to such facility shall not be treated as 
                meeting the requirements of this paragraph unless the 
                percentage of the cost of such component that is 
                financed by tax-exempt bonds is not greater than such 
                capture and storage percentage.
                    ``(C) Capture and storage percentage.--
                            ``(i) In general.--The capture and storage 
                        percentage shall be an amount, expressed as a 
                        percentage, equal to the quotient of--
                                    ``(I) the total metric tons of 
                                carbon dioxide annually captured, 
                                transported, and injected into a 
                                facility for geologic storage, or an 
                                enhanced oil or gas recovery well 
                                followed by geologic storage, divided 
                                by
                                    ``(II) the total metric tons of 
                                carbon dioxide which would otherwise be 
                                released into the atmosphere each year 
                                as industrial emission of greenhouse 
                                gas if the component were not installed 
                                in the industrial carbon dioxide 
                                facility.
                            ``(ii) Limited application of eligible 
                        components.--In the case of eligible components 
                        that are designed to capture carbon dioxide 
                        solely from specific sources of emissions or 
                        portions thereof within an industrial carbon 
                        dioxide facility, the capture and storage 
                        percentage under this subparagraph shall be 
                        determined based only on such specific sources 
                        of emissions or portions thereof.
    ``(o) Other Requirements.--(1) An issue shall not be treated as an 
issue under subsection (a) unless each entity that receives some or all 
of the proceeds from the issue for construction, alteration or repair 
work agrees that such work shall be performed in accordance with the 
requirements of subchapter IV of chapter 31 of title 40, United States 
Code.
    ``(2) With respect to enforcement of the requirements in paragraph 
(1), rules similar to rules of section 503(c) of the Clean Energy 
Future Through Innovation Act of 2021 shall be applied by substituting 
`issuer' for `taxpayer'.''.
    (c) Volume Cap.--Section 146(g)(4) of such Code is amended by 
striking ``paragraph (11) of section 142(a) (relating to high-speed 
intercity rail facilities)'' and inserting ``paragraph (11) or 
paragraph (16) of section 142(a)''.
    (d) Clarification of Private Business Use.--Section 141(b)(6) of 
such Code is amended by adding at the end the following new 
subparagraph:
                    ``(C) Clarification relating to qualified carbon 
                dioxide capture facilities.--For purposes of this 
                subsection, the sale of carbon dioxide produced by a 
                qualified carbon dioxide capture facility (as defined 
                in section 142(n)) which is owned by a governmental 
                unit shall not constitute private business use.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to obligations issued after the date of enactment of this Act.

SEC. 124. EXTENSION OF PUBLICLY TRADED PARTNERSHIP OWNERSHIP STRUCTURE.

    (a) In General.--Section 7704(d)(1)(E) of the Internal Revenue Code 
of 1986 is amended--
            (1) by striking ``income and gains derived from the 
        exploration'' and inserting ``income and gains derived from any 
        of the following:
                            ``(i) The exploration'',
            (2) by striking the comma at the end and inserting a 
        period, and
            (3) by adding at the end the following:
                            ``(ii) The production, storage, or 
                        transportation of any fuel which--
                                    ``(I) uses carbon dioxide captured 
                                from an anthropogenic source or the 
                                atmosphere as its primary feedstock, 
                                and
                                    ``(II) is determined by the 
                                Secretary, in consultation with the 
                                Secretary of Energy and the 
                                Administrator of the Environmental 
                                Protection Agency, to achieve a 
                                reduction of not less than a 60 percent 
                                in lifecycle greenhouse gas emissions 
                                (as defined in section 211(o)(1)(H) of 
                                the Clean Air Act) compared to baseline 
                                lifecycle greenhouse gas emissions (as 
                                defined in section 211(o)(1)(C) of such 
                                Act).
                        This clause shall not apply to any fuel which 
                        uses as its primary feedstock carbon dioxide 
                        which is deliberately released from naturally-
                        occurring subsurface springs.
                            ``(iii) The production of any product or 
                        the generation of electric power from a 
                        project--
                                    ``(I) which meets the requirements 
                                of subparagraphs (A) and (B) of section 
                                48B(c)(1), and
                                    ``(II) not less than 75 percent of 
                                the total carbon dioxide emissions of 
                                which is qualified carbon oxide (as 
                                defined in section 45Q(c)) which is 
                                disposed of or utilized as provided in 
                                paragraph (6).
                            ``(iv) The generation or storage of 
                        electric power (including associated income 
                        from the sale or marketing of energy, capacity, 
                        resource adequacy, and ancillary services) 
                        produced from any power generation facility 
                        which is, or from any power generation unit 
                        within, a qualified facility under section 
                        45Q(d) and not less than 50 percent (30 percent 
                        in the case of a facility or unit placed in 
                        service before January 1, 2017) of the total 
                        carbon dioxide emissions of which is qualified 
                        carbon oxide which is disposed of or used as 
                        provided in paragraph (7).
                            ``(v) The sale of any good or service from 
                        any facility (other than a power generation 
                        facility) which is a qualified facility 
                        described in section 45Q(c) and the captured 
                        qualified carbon oxide (as so defined) of which 
                        is disposed of as provided in paragraph (6).''.
    (b) Disposal and Utilization of Captured Carbon Dioxide.--Section 
7704(d) of such Code is amended by adding at the end the following new 
paragraphs:
            ``(6) Disposal and utilization of captured carbon 
        dioxide.--For purposes of clauses (iii)(II) and (iv) of 
        paragraph (1)(E), carbon dioxide is disposed of or used as 
        provided in this paragraph if such carbon dioxide is--
                    ``(A) placed into secure geological storage (as 
                determined under section 45Q(f)(2)),
                    ``(B) used as a tertiary injectant (as defined in 
                section 45Q(e)(3)) in a qualified enhanced oil or 
                natural gas recovery project (as defined in section 
                45Q(e)(2)) and placed into secure geological storage 
                (as so determined),
                    ``(C) fixed through photosynthesis or 
                chemosynthesis (including through the growing of algae 
                or bacteria),
                    ``(D) chemically converted to a material or 
                chemical compound in which it is securely stored, or
                    ``(E) used for any other purpose which the 
                Secretary determines has the potential to strengthen or 
                significantly develop a competitive market for carbon 
                dioxide captured from man-made sources.
            ``(7) Other requirements.--(A) Income and gains under 
        subsection (d)(1)(E) shall not be treated as ``qualifying 
        income'' under this section unless the publicly traded 
        partnership provides assurances to the Secretary that any 
        construction, alteration, or repair work associated with such 
        income and gains shall be performed in accordance with the 
        requirements of subchapter IV of chapter 31 of title 40, United 
        States Code.
            ``(B) With respect to enforcement of the requirements in 
        subparagraph (A), rules similar to rules of section 503(c) of 
        the Clean Energy Future Through Innovation Act of 2021 shall be 
        applied by substituting `publicly traded partnership' for 
        `taxpayer'.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act, in taxable years 
ending after such date.

SEC. 125. PRODUCTION TAX CREDIT FOR CERTAIN ELECTRICITY GENERATION 
              USING CARBON CAPTURE UTILIZATION AND STORAGE.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 45U. ELECTRICITY PRODUCED USING CARBON CAPTURE UTILIZATION AND 
              STORAGE TECHNOLOGY.

    ``(a) General Rule.--For purposes of section 38, the carbon capture 
production credit for any taxable year is an amount equal to--
            ``(1) in the case of a qualified facility using fossil 
        fuels, the product of--
                    ``(A) the megawatt hours of electricity--
                            ``(i) produced by the taxpayer at a 
                        qualified facility during the 20-year period 
                        beginning on the date the facility was 
                        originally placed in service, and
                            ``(ii) sold by the taxpayer to an unrelated 
                        person during the taxable year, multiplied by
                    ``(B)(i) $30 per megawatt hour in the case of a 
                qualified facility storing carbon in secure geological 
                storage, or
                    ``(ii) $24 per megawatt hour in the case of a 
                qualified facility using captured carbon oxide as a 
                tertiary injectant in a qualified enhanced oil or 
                natural gas recovery project, multiplied by
                    ``(C) the discount factor,
            ``(2) in the case of electricity generation facilities 
        using exclusively qualified hydrogen, qualified ammonia, or 
        qualified blends, the product of--
                    ``(A) the megawatt hours of electricity--
                            ``(i) produced by the taxpayer at a 
                        qualified facility during the 20-year period 
                        beginning on the date the facility was 
                        originally placed in service, and
                            ``(ii) sold by the taxpayer to an unrelated 
                        person during the taxable year, multiplied by
                    ``(B) $100 per megawatt hour.
    ``(b) Definitions.--For purposes of this section:
            ``(1) Discount factor.--The term `discount factor' means an 
        amount equal to 90 divided by the annual carbon dioxide 
        emissions rate expressed in pounds per megawatt-hour for a 
        qualified facility, except that--
                    ``(A) if the annual carbon dioxide emissions rate 
                for a qualified facility is less than 90 pounds per 
                megawatt-hour, the discount factor is equal to 1, and
                    ``(B) if the annual carbon dioxide emissions rate 
                for a qualified facility is greater 180 pounds per 
                megawatt-hour, the discount factor is equal to 0.
            ``(2) Qualified ammonia.--The term `qualified ammonia' 
        means ammonia fuel produced with less than 17.5 pounds of 
        carbon dioxide emissions per million Btu of gross fuel heating 
        value.
            ``(3) Qualified blend.--The term `qualified blend' means a 
        blend of qualified hydrogen or qualified ammonia with fossil 
        fuel in which the fossil fuel provides no more than 30 percent 
        of the heating value input.
            ``(4) Qualified facility.--The term `qualified facility' 
        means an electricity generation plant that--
                    ``(A) is equipped with carbon capture equipment, 
                the construction of which commenced before January 1, 
                2033,
                    ``(B) captures carbon oxide using carbon capture 
                equipment,
                    ``(C) stores captured carbon oxide in secure 
                geological storage or uses captured carbon oxide as a 
                tertiary injectant in a qualified enhanced oil or 
                natural gas recovery project, and
                    ``(D) has not been the basis for a credit received 
                under section 45Q.
            ``(5) Qualified hydrogen.--The term `qualified hydrogen' 
        means hydrogen fuel produced with less than 17.5 pounds of 
        carbon dioxide emissions per million Btu of gross fuel heating 
        value.''.
    (b) Part of General Business Credit.--Section 38(b) of such Code is 
amended by striking ``plus'' at the end of paragraph (32), by striking 
the period at the end of paragraph (33) and inserting ``, plus'', and 
by adding at the end the following new paragraph:
            ``(34) the carbon capture production credit under section 
        45U(a).''.
    (c) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 is amended by adding at the end 
the following new item:

``Sec. 45U. Electricity produced using carbon capture utilization and 
                            storage technology.''.
    (d) Effective Date.--The amendments made by this section shall 
apply with respect to electricity produced and sold after the date of 
the enactment of this Act.

SEC. 126. ELECTIVE PAYMENT OF CREDIT.

    (a) Subchapter B of chapter 65 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new section:

``SEC. 6431. ELECTIVE PAYMENT OF CREDITS RELATING TO CARBON OXIDE 
              SEQUESTRATION.

    ``(a) Election.--In the case of a taxpayer making an election (at 
such time and in such manner as the Secretary may provide) under this 
section with respect to any portion of an applicable credit, such 
taxpayer shall be treated as making a payment against the tax imposed 
by subtitle A for the taxable year equal to the amount of such portion.
    ``(b) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Governmental entities treated as taxpayers.--In the 
        case of an election under this section--
                    ``(A) any State or local government, or a political 
                subdivision thereof, or
                    ``(B) an Indian Tribal government
        shall be treated as a taxpayer for purposes of this section and 
        determining any applicable credit.
            ``(2) Applicable credit.--The term `applicable credit' 
        means each of the following credits that would (without regard 
        to this section) be determined with respect to the taxpayer:
                    ``(A) A carbon oxide sequestration credit under 
                section 45Q.
                    ``(B) A carbon capture production credit under 
                section 45U.
            ``(3) Indian tribal government.--The term `Indian Tribal 
        government' shall have the meaning given such term by section 
        139E.
            ``(4) Timing.--The payment described in subsection (a) 
        shall be treated as made on--
                    ``(A) in the case of any government, or political 
                subdivision, to which paragraph (1) applies and for 
                which no return is required under section 6011 or 
                6033(a), the later of the date that a return would be 
                due under section 6033(a) if such government or 
                subdivision were described in that section or the date 
                on which such government or subdivision submits a claim 
                for credit or refund (at such time and in such manner 
                as the Secretary shall provide), and
                    ``(B) in any other case, the later of the due date 
                of the return of tax for the taxable year or the date 
                on which such return is filed.
            ``(5) Waiver of special rules.--In the case of an election 
        under this section, the determination of any applicable credit 
        shall be without regard to paragraphs (3) and (4)(A)(i) of 
        section 50(b).
            ``(6) Special rule for mutual or cooperative electric 
        companies.--In the case of a mutual or cooperative electric 
        company or an organization described in section 501(c)(12) or 
        section 1381(a)(2), any income received or accrued in 
        connection with the credit under this section shall be treated 
        as an amount collected from members for the sole purpose of 
        meeting losses and expenses.
    ``(c) Exclusion From Gross Income.--Gross income of the taxpayer 
shall be determined without regard to this section.
    ``(d) Denial of Double Benefit.--Solely for purposes of section 38, 
in the case of a taxpayer making an election under this section, the 
applicable credit shall be reduced by the amount of the portion of such 
credit with respect to which the taxpayer makes such election.''.
    (b) Clerical Amendment.--The table of sections for subchapter B of 
chapter 65 is amended by adding at the end the following new item:

``Sec. 6431. Elective payment of credits related to carbon oxide 
                            sequestration.''.

SEC. 127. ALLOWANCE OF THE CARBON OXIDE SEQUESTRATION CREDIT AGAINST 
              THE BASE EROSION MINIMUM TAX.

    (a) In General.--Section 59A(b) of the Internal Revenue Code of 
1986 is amended--
            (1) in paragraph (1)(B)(ii)(I), by inserting ``and the 
        carbon dioxide sequestration credit determined under section 
        45Q'' after ``section 41(a)'', and
            (2) in paragraph (1)(B)(i), by inserting ``(other than the 
        credit allowed under section 38 for the taxable year which is 
        properly allocable to the credit for carbon oxide sequestration 
        determined under section 45Q)'' after ``credits allowed under 
        this chapter''.
    (b) Effective Date.--The amendments made by this section shall take 
effect as if included in section 41119 of the Bipartisan Budget Act of 
2018.

SEC. 128. MODIFICATION OF MERCHANT BANKING INVESTMENT REGULATION.

    (a) Extended Holding Period for Carbon Capture Projects.--Section 
4(c) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(c)) is 
amended by inserting after paragraph (14) the following new paragraph:
            ``(15) shares owned directly or indirectly in a company 
        that is the person to whom the credit for carbon oxide 
        sequestration in section 45Q of the Internal Revenue Code of 
        1986 is attributable pursuant to subsection (f)(3) of such 
        section, but such shares shall be disposed of within a period 
        of time that equals the sum of the number of years in 
        subsection (a)(3)(A) of such section and the number of years in 
        the recapture period as defined in such section or regulations 
        or other guidance prescribed under such section.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2020.

Subtitle D--Support for Carbon Dioxide Transportation and Sequestration 
                             Infrastructure

SEC. 131. FACILITIES FOR CARBON DIOXIDE TRANSPORTATION AND 
              SEQUESTRATION.

    (a) In General.--Subtitle B of title IV of the Energy Policy Act of 
2005 (42 U.S.C. 15971 et seq.) is further amended by adding after 
section 418 (as added by this Act) the following:

``SEC. 419. SECURING GEOLOGIC RESERVOIRS FOR STORAGE OF CARBON DIOXIDE.

    ``(a) In General.--The Secretary shall carry out a program to--
            ``(1) identify geological formations that are capable of 
        sequestering, cumulatively, at least 250,000,000 tons of carbon 
        dioxide with a target cost of less than $10 per ton;
            ``(2) assess the cost of developing and operating carbon 
        dioxide sequestration facilities at the geological formations 
        identified under paragraph (1); and
            ``(3) support the development of such carbon dioxide 
        sequestration facilities by providing grants or other 
        appropriate financial assistance to carbon dioxide 
        sequestration facility developers to--
                    ``(A) secure property rights that are necessary to 
                enable carbon dioxide sequestration in such geologic 
                formations; and
                    ``(B) obtain necessary permits and approval to 
                enable carbon dioxide sequestration in such geologic 
                formations.
    ``(b) Geographic Diversity.--The Secretary shall carry out 
subsection (a) with the goal of supporting development of carbon 
dioxide sequestration facilities that are capable of storing 
significant volumes of carbon dioxide at reasonable costs in each of 
the regions covered by the regional carbon sequestration partnerships 
established by the Secretary.
    ``(c) Application.--An entity seeking a grant or other appropriate 
financial assistance provided under subsection (a)(3) shall submit to 
the Secretary an application at such time and in such manner as the 
Secretary may require.
    ``(d) Cost Sharing.--The Secretary shall consider the activities 
described under subsection (a)(3) to be subject to the cost share 
requirement for demonstration and commercial application activities 
under section 988(c).

``SEC. 420. CARBON DIOXIDE SEQUESTRATION INFRASTRUCTURE DEVELOPMENT.

    ``(a) In General.--The Secretary shall carry out a program to 
provide grants to support--
            ``(1) the development of carbon dioxide pipeline 
        infrastructure that is necessary to support the transportation 
        of the volumes of carbon dioxide that are expected to be 
        captured at electricity generation facilities to appropriate 
        sites for long term sequestration; and
            ``(2) the development of geologic sequestration facilities 
        that are necessary to support long-term sequestration of the 
        volumes of carbon dioxide that are expected to be captured at 
        electricity generation facilities.
    ``(b) Application.--Applications for a grant provided under this 
section shall be submitted at such time and in such manner as the 
Secretary may require.
    ``(c) Priority.--The Secretary shall prioritize providing grants 
under subsection (a)(1) to support pipeline infrastructure that is of 
significant length and significant throughput capacity.
    ``(d) Cost Sharing.--The Secretary shall consider the grants 
provided under subsection (a) to be subject to the cost share 
requirement for demonstration and commercial application activities 
under section 988(c).
    ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out this section and section 419 
$2,000,000,000 for each of fiscal years 2022 through 2031.''.
    (b) Clerical Amendment.--The table of contents for the Energy 
Policy Act of 2005 is further amended by adding after the item relating 
to section 418 (as added by this Act) the following:

``Sec. 419. Securing geologic reservoirs for storage of carbon dioxide.
``Sec. 420. Carbon dioxide sequestration infrastructure development.''.

SEC. 132. CARBON DIOXIDE SEQUESTRATION UTILITIES.

    (a) In General.--The Secretary, in collaboration with the Secretary 
of Transportation and the Administrator of the Environmental Protection 
Agency, as appropriate, may provide technical assistance to a State 
that is seeking to--
            (1) establish a government-owned carbon dioxide 
        sequestration utility; or
            (2) regulate a privately owned carbon dioxide sequestration 
        utility.
    (b) Technical Assistance.--Technical assistance provided under 
subsection (a) may include--
            (1) with respect to a government-owned carbon dioxide 
        sequestration utility--
                    (A) conducting engineering studies to support the 
                development of a carbon dioxide sequestration facility; 
                and
                    (B) identifying potential carbon dioxide 
                transportation routes; and
            (2) with respect to State regulation of a privately owned 
        carbon dioxide sequestration utility--
                    (A) helping with developing regulations for any 
                privately owned carbon dioxide sequestration utility, 
                including with respect to the development of a 
                permitting system; and
                    (B) assisting with developing regulations for--
                            (i) services provided by a privately owned 
                        carbon dioxide sequestration utility; and
                            (ii) the setting of rates charged for such 
                        services.
    (c) Report.--Not later than 1 year after the date of enactment of 
this section, the Secretary shall submit to Congress a report that--
            (1) characterizes Federal, State, and local regulations 
        that apply to the development and operation of carbon dioxide 
        transportation infrastructure and sequestration facilities;
            (2) identifies any gaps in applicable regulations that need 
        to be addressed to ensure the safe and effective operation of 
        carbon dioxide transportation infrastructure and sequestration 
        facilities;
            (3) evaluates whether regulation of the rates and terms of 
        service for carbon dioxide transportation service or 
        sequestration service is necessary to ensure fair access to 
        such services;
            (4) evaluates whether the use of the right of eminent 
        domain to develop carbon dioxide transportation infrastructure 
        and sequestration facilities is consistent with the public 
        interest; and
            (5) provides any recommended changes to Federal law that 
        would support the development and use of carbon dioxide 
        transportation infrastructure and sequestration facilities 
        consistent with the public interest.
    (d) Carbon Dioxide Sequestration Utility Defined.--The term 
``carbon dioxide sequestration utility'' means any organization that 
provides carbon dioxide transportation or sequestration service.

   TITLE II--INNOVATION IN RENEWABLE ENERGY, ENERGY EFFICIENCY, AND 
                                STORAGE

SEC. 201. ESTABLISHMENT OF TECHNOLOGY PERFORMANCE AND COST TARGETS.

    (a) In General.--Not later than 1 year after the date of enactment 
of this section, the Secretary shall establish technology performance 
and cost targets for three consecutive 5-year periods to address 
existing gaps in technology, with the first such period starting on the 
date of enactment of this section and the last such period ending on 
the date that is 15 years following such date of enactment.
    (b) Targets.--Technology and performance cost targets shall be 
established for each of the following technology categories:
            (1) Advanced renewable power technologies, which include--
                    (A) large-scale, novel renewable power plants;
                    (B) renewable hydrogen power plants, including 
                plants for which the hydrogen comes from renewable 
                natural gas or biogas;
                    (C) on-shore or off-shore wind power;
                    (D) thermal or photovoltaic solar power;
                    (E) hydropower;
                    (F) geothermal power;
                    (G) biomass power; and
                    (H) advanced renewable energy manufacturing 
                techniques.
            (2) Mechanical, chemical, and thermal energy storage 
        technologies, which include--
                    (A) advanced grid-scale energy storage technologies 
                with storage durations in the range of 10 to 50 hours; 
                and
                    (B) grid-scale energy storage projects that can 
                economically balance electricity supply and demand 
                across seasons.
            (3) Electricity transmission technologies, which include 
        underground high-voltage direct current electricity 
        transmission.
            (4) Commercial, industrial, and residential energy 
        efficiency technologies, which include--
                    (A) retrofit packages that reduce the energy used 
                by an average single-family home by at least 50 percent 
                at a cost of no more than $25,000 per such home;
                    (B) smart heating, ventilation, and air 
                conditioning control technologies that--
                            (i) can be used in commercial buildings 
                        that have between 5,000 and 30,000 square feet 
                        of floor area;
                            (ii) can reduce heating, ventilation, and 
                        air conditioning energy consumption by an 
                        average of at least 20 percent compared to 
                        average commercial buildings;
                            (iii) yield energy cost savings that can 
                        provide at least a 50 percent annual return on 
                        the original investment; and
                            (iv) may include a cloud-based information 
                        technology;
                    (C) those technologies that the Secretary 
                identifies as having the ability to improve energy 
                efficiency or reduce emissions in heavy industries, 
                which include those that produce or refine aluminum, 
                steel, cement, oil, or fertilizer; and
                    (D) flexible load technology improvements to reduce 
                peak demand.
            (5) Industrial process and building electrification 
        technologies, which include--
                    (A) heat pump space heaters;
                    (B) heat pump water heaters;
                    (C) induction stoves; and
                    (D) advanced industrial process heat technologies.

SEC. 202. ADVANCED INNOVATION AND COMMERCIALIZATION PROGRAM.

    (a) In General.--The Secretary, in collaboration with the National 
Laboratories, other Federal agencies, and private sector and university 
partners as the Secretary determines necessary, shall establish a 
program, to be known as the ``Advanced Innovation and Commercialization 
Program'', to carry out research, development, and demonstration of 
technology that meets the targets established for those technologies 
identified in section 201(b).
    (b) Early Deployment.--
            (1) In general.--The Secretary shall establish a program to 
        provide grants for early deployment of the technologies 
        demonstrated under the Advanced Innovation and 
        Commercialization program under this section.
            (2) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $3,000,000,000 
        for each of fiscal years 2022 through 2031.
    (c) Federal Procurement.--
            (1) In general.--The Secretary, in collaboration with the 
        Secretary of Defense and the Administrator of the General 
        Services Administration, shall establish Federal procurement 
        goals and deadlines for achieving such goals for those 
        technologies identified in section 201(b).
            (2) Federal energy and advanced technology energy 
        procurement.--The Secretary, in collaboration with the 
        Secretary of Defense and the Administrator of General Services, 
        shall--
                    (A) through administrative and regulatory actions, 
                improve Federal procurement of the technologies 
                described in paragraph (1);
                    (B) identify and report on barriers to improving 
                Federal procurement of energy and technologies that 
                require legislative changes; and
                    (C) take due regard of the recommendations from the 
                2016 report entitled ``Secretary of Energy Advisory 
                Board Report of the Task Force on Federal Energy 
                Management''.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out subsection (a) the following:
            (1) With respect to the advanced renewable energy 
        technologies projects described in section 201(b)(1), 
        $2,000,000,000 for each of fiscal years 2022 through 2031.
            (2) With respect to the energy storage technologies 
        projects described in section 201(b)(2), $400,000,000 for each 
        of fiscal years 2022 through 2031.
            (3) With respect to the transmission technologies and 
        projects described in section 201(b)(3), $600,000,000 for each 
        of fiscal years 2022 through 2031.
            (4) With respect to the commercial, industrial, and 
        residential energy efficiency technologies described in section 
        201(b)(4), $1,000,000,000 for each of fiscal years 2022 through 
        2031.
            (5) With respect to the industrial process and building 
        electrification technologies described in section 201(b)(5), 
        $1,000,000,000 for each of fiscal years 2022 through 2031.

SEC. 203. UPDATING MANUFACTURED HOMES.

    (a) Updating Manufactured Homes.--Not later than one year after the 
date of enactment of this section, the Secretary shall establish a 
program to provide grants and technical assistance to individuals or 
businesses to facilitate the replacement of inefficient manufactured 
homes with efficient manufactured homes.
    (b) Definitions.--In this section:
            (1) Efficient manufactured home.--The term ``efficient 
        manufactured home'' means a manufactured home for which the 
        Energy Star label may be used in accordance with section 324A 
        of the Energy Policy and Conservation Act (42 U.S.C. 6294a).
            (2) Inefficient manufactured home.--The term ``inefficient 
        manufactured home'' means a manufactured home that was 
        manufactured before June 1976.
            (3) Manufactured home.--The term ``manufactured home'' has 
        the meaning given such term in section 603 of the Housing and 
        Community Development Act of 1974 (42 U.S.C. 5402).
    (c) Authorization.--There is authorized to be appropriated to carry 
out this section $2,500,000,000 for each of fiscal years 2022 through 
2031, to remain available until expended.

SEC. 204. INVESTMENT TAX CREDITS FOR ENERGY BATTERY STORAGE, OFFSHORE 
              WIND, AND CERTAIN HYDROPOWER TECHNOLOGIES.

    (a) In General.--Section 48(a) of the Internal Revenue Code of 1986 
is amended--
            (1) by striking subparagraph (5)(F), and
            (2) in paragraph (3)(A), by striking ``or'' at the end of 
        clause (vii), and by adding at the end the following new 
        clauses:
                            ``(ix) equipment which generates wind 
                        energy from an offshore facility,
                            ``(x) energy storage equipment,
                            ``(xi) eligible hydroelectric equipment, or
                            ``(xii) equipment which generates 
                        geothermal electricity through an enhanced 
                        geothermal system,''.
    (b) Allowance of 30 Percent Credit.--
            (1) In general.--Section 48(a)(2)(A)(i)(II) of the Internal 
        Revenue Code of 1986 is amended by striking ``paragraph 
        (3)(A)(i)'' and inserting ``clause (i), (ix), (x), (xi), or 
        (xii) of paragraph (3)(A)''.
            (2) Phaseout.--Section 48(a)(6) of such Code is amended--
                    (A) by striking ``solar energy'' in the heading and 
                inserting ``certain'', and
                    (B) by striking ``paragraph (3)(A)(i)'' each place 
                it appears and inserting ``clause (i), (ix), (x), (xi), 
                or (xii) of paragraph (3)(A)''.
    (c) Definitions.--
            (1) Energy credit.--Section 48(c) of the Internal Revenue 
        Code of 1986 is amended by adding at the end the following new 
        paragraphs:
            ``(6) Qualified offshore wind property.--
                    ``(A) In general.--The term `qualified offshore 
                wind property' means an offshore facility using wind to 
                produce electricity.
                    ``(B) Offshore facility.--The term `offshore 
                facility' means any facility located in the inland 
                navigable waters of the United States, including the 
                Great Lakes, or in the coastal waters of the United 
                States, including the territorial seas of the United 
                States, the exclusive economic zone of the United 
                States, and the outer Continental Shelf of the United 
                States.
            ``(7) Energy storage equipment.--The term `energy storage 
        equipment' means equipment which receives, stores, and delivers 
        energy using batteries, compressed air, pumped hydropower, 
        hydrogen storage (including hydrolysis and electrolysis), 
        thermal energy storage, regenerative fuel cells, flywheels, 
        capacitors, superconducting magnets, or other technologies 
        identified by the Secretary in consultation with the Secretary 
        of Energy, and which has a capacity of not less than 5 kilowatt 
        hours.
            ``(8) Eligible hydroelectric equipment.--The term `eligible 
        hydroelectric equipment' means equipment used for the 
        generation of electricity installed at a dam which--
                    ``(A) was placed in service before the date of the 
                enactment of this paragraph and operated for flood 
                control, navigation, or water supply purposes and did 
                not produce hydroelectric power prior to the date of 
                the enactment of this paragraph,
                    ``(B) is part of a project that is licensed by the 
                Federal Energy Regulatory Commission and meets all 
                other applicable environmental, licensing, and 
                regulatory requirements, and
                    ``(C) is operated so that the water surface 
                elevation at any given location and time that would 
                have occurred in the absence of the hydroelectric 
                project is maintained, subject to any license 
                requirements imposed under applicable law that change 
                the water surface elevation for the purpose of 
                improving environmental quality of the affected 
                waterway.
            ``(9) Enhanced geothermal system.--The term `enhanced 
        geothermal system' means a system to extract heat by creating a 
        subsurface fracture system to which water can be added through 
        injection wells.''.
            (2) Qualifying advanced energy project credit.--Section 
        48C(c)(1)(A)(i)(IV) of the Internal Revenue Code of 1986 is 
        amended by inserting``, including through direct air capture or 
        carbon dioxide removal'' after ``emissions''.
    (d) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2020.

SEC. 205. EXTENSION OF PRODUCTION TAX CREDIT FOR SOLAR AND ON-SHORE 
              WIND.

    (a) Wind.--Section 45(d)(1) of the Internal Revenue Code of 1986 is 
amended by striking ``January 1, 2022'' and inserting ``January 1, 
2031''.
    (b) Solar.--Section 45(d)(4)(A) of such Code is amended by striking 
``is placed in service before January 1, 2006'' and inserting ``the 
construction of which begins before January 1, 2031''.
    (c) Application of Phaseout Percentage to Wind Facilities.--Section 
45(b)(5)(D) of such Code is amended by striking ``January 1, 2022'' and 
inserting ``January 1, 2031''.
    (d) Effective Date.--The amendments made by this section shall 
apply to facilities the construction of which begins after December 31, 
2020.

SEC. 206. RENEWAL OF QUALIFYING ADVANCED ENERGY PROJECT CREDIT.

    (a) In General.--Section 48C(d)(2)(A) of the Internal Revenue Code 
of 1986 is amended by striking ``during the 2-year period beginning on 
the date the Secretary establishes the program under paragraph (1)''.
    (b) Effective Date.--The amendment made by this section shall apply 
to applications received after the date of the enactment of this Act.

SEC. 207. PERFORMANCE-BASED TAX CREDITS FOR COMMERCIAL AND RESIDENTIAL 
              BUILDINGS.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986, as amended by this Act, is 
amended by adding at the end the following new section:

``SEC. 45V. DEEP RETROFITS AND ZERO-ENERGY COMMERCIAL AND RESIDENTIAL 
              BUILDINGS.

    ``(a) Eligibility for Tax Credit.--For purposes of section 38, in 
the case of an eligible taxpayer who places an eligible building in 
service, the deep retrofits and zero-energy commercial and residential 
buildings credit determined under this section for a taxable year is 
the applicable amount with respect to such eligible building.
    ``(b) Eligible Taxpayer.--
            ``(1) In general.--For purposes of subsection (a), the term 
        `eligible taxpayer' means, with respect to an eligible 
        building--
                    ``(A) for a residential building, the builder, and
                    ``(B) for a commercial building, the building 
                owner.
            ``(2) Transfer of credit.--An eligible taxpayer who is a 
        building owner eligible for a credit under subparagraph (B) of 
        paragraph (1) may elect to transfer such credit to the 
        architect, builder, or contractor of such building.
            ``(3) Eligible building.--
                    ``(A) In general.--For purposes of this subsection, 
                the term `eligible building' means a building--
                            ``(i) located in the United States,
                            ``(ii) which is at least 50 percent 
                        occupied in the taxable year in the tax credit 
                        is claimed,
                            ``(iii) with respect to which a 
                        certification has been issued for a qualifying 
                        reason pursuant to subsection (c), and
                            ``(iv) with respect to which no credit 
                        under this section has been claimed for the 
                        same qualifying reason in a prior taxable year.
                    ``(B) Qualifying reason.--For purposes of this 
                paragraph, with respect to an eligible building, the 
                term `qualifying reason' means such building--
                            ``(i) has undergone a deep energy retrofit,
                            ``(ii) is a zero-energy-ready building, or
                            ``(iii) is a zero-energy building placed in 
                        service at least 12 months prior to the taxable 
                        year in which the credit is claimed.
                    ``(C) Special rule for zero-energy and zero-energy-
                ready buildings.--A taxpayer may claim the credit under 
                this section twice for the same building if--
                            ``(i) the credit is claimed in a taxable 
                        year for the qualifying reason described in 
                        subparagraph (B)(ii), and
                            ``(ii) the credit is claimed in a 
                        succeeding taxable year for the qualifying 
                        reason described in subparagraph (B)(iii).
    ``(c) Certifications.--
            ``(1) Deep energy retrofit.--In the case of a building with 
        respect to which a deep energy retrofit was implemented, such 
        retrofit shall meet the certification standard of subsection 
        (b)(3)(A) if it has been completed and certified as a deep 
        energy retrofit by a registered architect or engineer, or by 
        another professional authorized by the Secretary of Energy by 
        rule.
            ``(2) Zero-energy building.--In the case of a building 
        which is a zero-energy building, such building shall meet the 
        certification standard of subsection (b)(3)(A) if the building 
        has been zero-energy over a span of 12 continuous months with 
        at least 50 percent occupancy as verified--
                    ``(A) through certification by the Living Buildings 
                Institute Zero Energy Certification Program,
                    ``(B) through certification by the LEED Zero Energy 
                Certification Program Verification, or
                    ``(C) by another professional authorized by the 
                Secretary of Energy by rule.
            ``(3) Zero-energy-ready building.--In the case of a 
        building which is a zero-energy-ready building, such building 
        shall meet the certification standard of subsection (b)(3)(A)--
                    ``(A) in the case of a commercial building or high-
                rise residential building, if the taxpayer receives a 
                certification from registered engineer, architect or 
                other professional recognized by Secretary of Energy 
                stating that such building meets the definition of a 
                zero-energy-ready building under subsection (e)(16)(A), 
                and
                    ``(B) if such building is a low-rise residential 
                building--
                            ``(i) if such building has been certified 
                        as described in subsection (e)(16)(B)(i),
                            ``(ii) if the taxpayer receives a 
                        certification from registered engineer, 
                        architect or other professional recognized by 
                        Secretary of Energy stating that such building 
                        meets the definition of a zero-energy-ready 
                        building under subsection (e)(16)(B)(ii).
    ``(d) Applicable Amount.--For purposes of subsection (a), the 
applicable amount shall be determined as follows:
            ``(1) Zero-energy-ready buildings.--For certified zero-
        energy-ready buildings--
                    ``(A) for a residential building with no more than 
                four dwelling units, $5,000 per dwelling unit,
                    ``(B) for a residential building with five or more 
                dwelling units, $3,500 per dwelling unit, and
                    ``(C) for a commercial building, $3 per square foot 
                of floor area.
            ``(2) Zero-energy buildings.--For certified zero-energy 
        buildings--
                    ``(A) for a residential building with no more than 
                four dwelling units, $5,000 per dwelling unit,
                    ``(B) for a residential building with five or more 
                dwelling units, $3,500 per dwelling unit, and
                    ``(C) for a commercial building that is a zero-
                energy building for a period of 12 continuous months 
                starting after the building is at least 50 percent 
                occupied, $3 per square foot of floor area, provided 
                that a zero-energy building may also receive the zero-
                energy-ready building incentive if it meets the 
                criteria for this incentive.
            ``(3) Deep energy retrofits.--The following tax credit 
        amounts shall be awarded to buildings upon completion of a deep 
        energy retrofit--
                    ``(A) for a residential building, $10,000 per 
                dwelling unit, up to a maximum of $1,000,000 per 
                building, and
                    ``(B) for a commercial building, $25 per square 
                foot of floor area, up to a maximum of $2,000,000 per 
                building.
    ``(e) Definitions.--In this section:
            ``(1) Btu.--The term `Btu' means British Thermal Unit.
            ``(2) Building energy.--The term `building energy' means 
        energy consumed at the building site as measured at the site 
        boundary, which includes heating, cooling, ventilation, 
        domestic hot water, indoor and outdoor lighting, plug loads, 
        process energy, elevators and conveying systems, and 
        intrabuilding transportation systems.
            ``(3) Deep energy retrofit.--The term `deep energy 
        retrofit' means a project that uses energy efficiency measures 
        and renewable energy resources to reduce the energy use of an 
        existing building by at least 50 percent on an annual basis 
        relative to the most recent 12 month period in which the 
        building was fully occupied prior to the project, provided that 
        energy efficiency measures must account for at least 80 percent 
        of the reduction in energy use.
            ``(4) Delivered energy.--The term `delivered energy' means 
        any type of energy that could be bought or sold as building 
        energy, including electricity, steam, hot or chilled water, 
        natural gas, biogas, landfill gas, coal, coke, propane, 
        petroleum and its derivatives, residual fuel oil, alcohol-based 
        fuels, wood, biomass, and any other material consumed as fuel.
            ``(5) Exported energy.--The term `exported energy' means 
        on-site renewable energy supplied through the site boundary and 
        used outside the site boundary.
            ``(6) High-rise commercial building.--The term `high-rise 
        commercial building' means a commercial building of four or 
        more above grade stories.
            ``(7) High-rise residential building.--The term `high-rise 
        residential building' means a multi-family building with four 
        or more above grade stories.
            ``(8) kWh.--The term `kWh' means Kilowatt Hour.
            ``(9) Low-rise residential building.--The term `low-rise 
        residential building' means a single-family home or multifamily 
        building with no more than three above grade stories.
            ``(10) On-site renewable energy.--The term `on-site 
        renewable energy' means any renewable energy collected and 
        generated within the site boundary that is used for building 
        energy, and the excess renewable energy exported outside the 
        site boundary, provided that any renewable energy certificates 
        associated with the on-site renewable energy must be retained 
        or retired by the building owner or lessee to be claimed as on-
        site renewable energy.
            ``(11) Renewable energy.--The term `renewable energy' means 
        energy generated by biomass, hydro, geothermal, solar, wind, 
        ocean thermal, wave action, or tidal action resources.
            ``(12) Renewable energy certificate.--The term `renewable 
        energy certificate' means a certificate or credit that 
        represents and conveys the environmental, social, or other 
        nonpower qualities of one megawatt hour of renewable energy, 
        and can be sold separately from the underlying physical 
        electricity associated with the renewable energy resource.
            ``(13) Site boundary.--The term `site boundary' means the 
        limits of the building site across which delivered energy and 
        exported energy are measured.
            ``(14) Source energy.--The term `source energy' means 
        building energy plus the energy losses in thermal combustion in 
        electricity generation resources; and energy losses in 
        transmission and distribution to the building site.
            ``(15) Zero-energy building.--The term `zero-energy 
        building' means a building for which, on a source energy basis, 
        the actual annual delivered energy is less than or equal to the 
        on-site renewable exported energy, provided that energy 
        purchased from off-site and renewable energy generated on-site 
        and then sold off-site shall be valued at 6000 Btu/kWh.
            ``(16) Zero-energy-ready building.--The term `zero-energy-
        ready building' means a building that--
                    ``(A) if it is a commercial building or high-rise 
                residential building--
                            ``(i) is in compliance with Standard 90.1-
                        2019 published by the American Society of 
                        Heating, Refrigerating, and Air Conditioning 
                        Engineers,
                            ``(ii) is in compliance with Appendix CA 
                        (Solar-Ready Zone) of the 2021 International 
                        Energy Conservation Code, and
                            ``(iii) demonstrates that its energy 
                        consumption is at least 30 percent below the 
                        maximum permitted under American Society of 
                        Heating, Refrigerating, and Air Conditioning 
                        Engineers Standard 90.1-2019, as calculated 
                        using the methodology in Appendix G of such 
                        standard, and
                    ``(B) if it is a low-rise residential building--
                            ``(i) has an Energy Rating Index of 40 or 
                        less as calculated using the procedures in 
                        Chapter 3 of the residential section of the 
                        2012 International Energy Conservation Code but 
                        excluding any renewable energy resources in the 
                        calculation, provided that certification of 
                        compliance with the Energy Rating Index 
                        requirement shall be made by a registered 
                        architect or engineer by another professional 
                        authorized by the Secretary of Energy by rule,
                            ``(ii) is in compliance with Appendix RA 
                        (Solar-Ready Zone) of the 2021 International 
                        Energy Conservation Code, and
                            ``(iii) is certified under--
                                    ``(I) the Zero Energy Ready Homes 
                                program administered by the Department 
                                of Energy, or
                                    ``(II) the Passive House 
                                specifications of the Passive Institute 
                                US or the International Passive House 
                                Institute.
    ``(f) Denial of Double Benefit.--No credit shall be allowed under 
this section for any expense for which a deduction or credit is allowed 
under any other provision of this chapter, including under sections 
25C, 25D, and 179D.
    ``(g) Sunset.--The tax credit under this section shall terminate--
            ``(1) for zero-energy and zero-energy-ready residential 
        buildings, one year after the Secretary of Energy determines by 
        rule that such buildings accounted for at least 20 percent of 
        new residential buildings in the most recent calendar year,
            ``(2) for zero-energy and zero-energy-ready commercial 
        buildings, one year after the Secretary of Energy determines by 
        rule that such buildings accounted for at least 20 percent of 
        new commercial building construction in the most recent 
        calendar year,
            ``(3) for deep energy retrofits to residential buildings, 
        one year after the Secretary of Energy determines by rule that 
        at least 10 percent of units at residential buildings have 
        undergone such retrofits, and
            ``(4) for deep energy retrofits to commercial buildings, 
        one year after the Secretary of Energy determines by rule that 
        at least 10 percent of the floor area of commercial buildings 
        has undergone such retrofits.
    ``(h) Rules and Regulations.--Not later than one year after the 
date of the enactment of this section, the Secretary, after 
consultation with the Secretary of Energy, shall promulgate such 
regulations and guidance as are necessary to implement this section.
    ``(i) Report to Congress.--Not later than two years after enactment 
of this section, and each calendar year thereafter, the Secretary shall 
report to Congress on the use of tax credits under this section, broken 
out by the applicable amount categories in subsection (d), which shall 
include--
            ``(1) the dollar value of tax credits awarded to date and 
        in the prior calendar year, and
            ``(2) the number of units at residential buildings and the 
        number of square feet of floor area in commercial buildings for 
        which tax credits were awarded to date and in the prior year 
        calendar year.''.
    (b) Conforming Amendments.--
            (1) Section 38(b) of the Internal Revenue Code of 1986 is 
        amended--
                    (A) in paragraph (33), by striking ``plus'' at the 
                end,
                    (B) in paragraph (34), by striking the period at 
                the end and inserting, ``plus'', and
                    (C) by adding at the end the following new 
                paragraph:
            ``(34) the Deep energy retrofits and zero-energy commercial 
        and residential buildings credit determined under section 
        45V(a).''.
            (2) The table of sections for subpart D of part IV of 
        subchapter A of chapter 1 of such Code is amended by adding at 
        the end the following new item:

``Sec. 45V. Deep retrofits and zero-energy commercial and residential 
                            buildings.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2021.

SEC. 208. EXTENSION OF PUBLICLY TRADED PARTNERSHIP OWNERSHIP STRUCTURE 
              TO RENEWABLE ENERGY PROJECTS.

    (a) In General.--Section 7704(d)(1)(E) of the Internal Revenue Code 
of 1986, as amended by this Act, is amended by adding after clause (v) 
the following:
                            ``(vi) The generation of electric power 
                        (including the leasing of tangible personal 
                        property used for such generation) exclusively 
                        using any resource described in section 
                        45(c)(1) or energy property described in 
                        section 48 (determined without regard to any 
                        termination date) or, in the case of a facility 
                        described in paragraph (3) or (7) of section 
                        45(d) (determined without regard to any placed 
                        in service date or date by which construction 
                        of the facility is required to begin), the 
                        accepting or processing of such resource.
                            ``(vii) The sale of electric power, 
                        capacity, resource adequacy, demand response 
                        capabilities, or ancillary services that is 
                        produced or made available from any equipment 
                        or facility (operating as a single unit or as 
                        an aggregation of units) the principal function 
                        of which is to--
                                    ``(I) use mechanical, chemical, 
                                electrochemical, hydroelectric, or 
                                thermal processes to store energy that 
                                was generated at one time for 
                                conversion to electricity at a later 
                                time, or
                                    ``(II) store thermal energy for 
                                direct use for heating or cooling at a 
                                later time in a manner that avoids the 
                                need to use electricity at that later 
                                time.
                            ``(viii) The generation, storage, or 
                        distribution of thermal energy exclusively 
                        utilizing property described in section 
                        48(c)(3) (determined without regard to 
                        subparagraphs (B) and (D) thereof and without 
                        regard to any placed in service date).
                            ``(ix) The generation, storage, or 
                        distribution of thermal energy exclusively 
                        using any resource described in section 
                        45(c)(1) or energy property described in clause 
                        (i) or (iii) of section 48(a)(3)(A).
                            ``(x) The use of recoverable waste energy, 
                        as defined in section 371(5) of the Energy 
                        Policy and Conservation Act (42 U.S.C. 
                        6341(5)).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2020.

SEC. 209. MANUFACTURER CREDIT FOR HIGH-EFFICIENCY HEAT PUMPS AND HEAT 
              PUMP WATER HEATERS.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986, as amended by this Act, is 
amended by adding at the end the following new section:

``SEC. 45W. MANUFACTURER CREDIT FOR HIGH-EFFICIENCY HEAT PUMPS AND HEAT 
              PUMP WATER HEATERS.

    ``(a) Allowance of Credit.--
            ``(1) In general.--For purposes of section 38, the energy 
        efficient heat pump credit determined under this section for 
        any taxable year is an amount equal to the sum of the credit 
        amounts determined under paragraph (2) for each type of 
        qualified energy efficient heat pump produced by the taxpayer 
        during the calendar year ending with or within the taxable 
        year.
            ``(2) Credit amounts.--The credit amount determined for any 
        type of qualified energy efficient appliance is--
                    ``(A) the applicable amount determined under 
                subsection (b) with respect to such type, multiplied by
                    ``(B) the eligible production for such type under 
                subsection (c).
    ``(b) Applicable Amount.--For purposes of subsection (a):
            ``(1) Consumer heat pump water heaters.--The applicable 
        amount is $600 in the case of a consumer heat pump water heater 
        that is manufactured in one of calendar years 2022 through 2030 
        and that has a Uniform Energy Factor of 3.3 or more for 
        electric water heaters and 1.3 or more for gas water heaters.
            ``(2) Commercial heat pump water heaters.--The applicable 
        amount is $24 per thousand British Thermal Units of heating 
        capacity in the case of a commercial heat pump water heater 
        manufactured in one of calendar years 2022 through 2030 and 
        that has a Coefficient of Performance of 3.0 or more for 
        electric water heaters and 1.3 or more for gas water heaters.
            ``(3) Consumer unitary heat pumps.--The applicable amount 
        is $1000 in the case of a consumer unitary heat pump that--
                    ``(A) is manufactured in calendar years 2022 
                through 2030,
                    ``(B) in the case of an electric heat pump meets 
                either--
                            ``(i) the most recent requirements of the 
                        Energy Star Most Efficient Specification 
                        promulgated by the United States Environmental 
                        Protection Agency before the date of enactment 
                        of this section, or
                            ``(ii) the most recent Cold Climate Air-
                        Source Heat Pump Specification promulgated by 
                        Northeast Energy Efficiency Partnerships before 
                        the date of enactment of this section, and
                    ``(C) in the case of a gas heat pump, has an Annual 
                Fuel Utilization Efficiency of 140 percent or more.
            ``(4) Commercial heat pumps.--The applicable amount is $24 
        per thousand British Thermal Units of heating capacity measured 
        at a 17 degree Fahrenheit ambient temperature in the case of a 
        commercial heat pump that is manufactured in calendar years 
        2022 through 2030 and that has a Coefficient of Performance of 
        2.3 or more at a 17 degree Fahrenheit ambient temperature for 
        electric heat pumps, and 1.2 or more at a 17 degree Fahrenheit 
        ambient temperature for gas heat pumps.
            ``(5) Industrial heat pumps.--The applicable amount is $36 
        per thousand British Thermal Units of heating capacity for heat 
        pumps with a heating capacity of 2,400 thousand British Thermal 
        Units or less and $18 per thousand British Thermal Units of 
        heating capacity for heat pumps with a heating capacity above 
        2,400 thousand British Thermal Units in the case of an 
        industrial heat pump that is manufactured and installed in an 
        industrial facility in calendar years 2022 through 2030 and 
        that has a Coefficient of Performance of 2.0 or more.
    ``(c) Eligible Production.--The eligible production in a calendar 
year with respect to each type of energy efficient heat pump is--
            ``(1) the number of heat pumps of such type that are 
        produced by the taxpayer in the United States during such 
        calendar year, less
            ``(2) the average number of heat pumps of such type that 
        were produced by the taxpayer (or any predecessor) in the 
        United States during the preceding 2-calendar year period.
    ``(d) Types of Energy Efficient Heat Pumps.--For purposes of this 
section, the types of energy efficient heat pumps are--
            ``(1) consumer heat pump water heaters described in 
        subsection (b)(1),
            ``(2) commercial heat pump water heaters described in 
        subsection (b)(2),
            ``(3) consumer unitary heat pumps described in subsection 
        (b)(3),
            ``(4) commercial heat pumps described in subsection (b)(4), 
        and
            ``(5) industrial heat pumps described in subsection (b)(5).
    ``(e) Limitations.--
            ``(1) Aggregate credit amount allowed.--The aggregate 
        amount of credit allowed under subsection (a) with respect to a 
        taxpayer for any taxable year shall not exceed $250,000,000, 
        reduced by the amount of the credit allowed under subsection 
        (a) to the taxpayer (or any predecessor) for all prior taxable 
        years beginning after December 31, 2021.
            ``(2) Limitation based on gross receipts.--The credit 
        allowed under subsection (a) with respect to a taxpayer for the 
        taxable year shall not exceed an amount equal to 4 percent of 
        the average annual gross receipts of the taxpayer for the 3 
        taxable years preceding the taxable year in which the credit is 
        determined.
            ``(3) Gross receipts.--For purposes of this subsection, the 
        rules of paragraphs (2) and (3) of section 448(c) shall apply.
    ``(f) Adjustment of Energy Efficiency Criteria.--No later than 
December 31, 2022, and every two years thereafter, the Secretary, in 
consultation with the Secretary of Energy, shall review the efficiency 
levels in subsection (b) and revise these levels upward if necessary to 
include only the most efficient commercially available heat pumps of 
each type, while ensuring that at least three manufacturers are 
represented in each type across a range of product heating capacities.
    ``(g) Test Procedures.--
            ``(1) The Department of Energy shall develop test 
        procedures to determine Coefficient of Performance for--
                    ``(A) gas commercial heat pump water heaters,
                    ``(B) gas commercial heat pumps, and
                    ``(C) industrial heat pumps.
            ``(2) Such test procedures shall build upon the foundation 
        of relevant current American National Standard Institute and 
        International Organization of Standard test procedures.
    ``(h) Definitions.--For purposes of this section:
            ``(1) Qualified energy efficient heat pump.--The term 
        `qualified energy efficient heat pump' means--
                    ``(A) any consumer heat pump water heater described 
                in subsection (b)(1),
                    ``(B) any commercial heat pump water heater 
                described in subsection (b)(2),
                    ``(C) any consumer unitary heat pump described in 
                subsection (b)(3),
                    ``(D) any commercial heat pump described in 
                subsection (b)(4), and
                    ``(E) any industrial heat pump described in 
                subsection (b)(5).
            ``(2) Consumer heat pump water heater.--The term `consumer 
        heat pump water heater' means a water heater that uses a heat 
        pump to heat water, has a maximum electric current rating of 24 
        amperes at an input voltage of 250 volts or less for electric 
        water heaters, or a gas input of 75,000 Btu per hour or less 
        for gas water heaters, measured in accordance with applicable 
        U.S. Department of Energy test procedures.
            ``(3) Commercial heat pump water heaters.--The term 
        `commercial heat pump water heater' means a water heater that 
        uses a heat pump to heat water and is not a consumer heat pump 
        water heater defined in paragraph (2).
            ``(4) Consumer unitary heat pump.--The term `consumer 
        unitary heat pump' means a heat pump designed to provide space 
        heating and cooling with a cooling capacity of 65,000 British 
        Thermal Units per hour or less, measured in accordance with the 
        applicable Department of Energy test procedures.
            ``(5) Commercial heat pump.--The term `commercial heat 
        pump' means a heat pump designed to provide space heating and 
        cooling with a cooling capacity of more than 65,000 British 
        Thermal Units per hour, measured in accordance with the 
        applicable Department of Energy test procedures.
            ``(6) Industrial heat pump.--The term `industrial heat 
        pump' means a heat pump that upgrades industrial waste heat to 
        a higher temperature such that the delivered heat is produced 
        and supplied to the facility more efficiently than conventional 
        heating methods, such as a steam or electric resistance boiler.
            ``(7) Produced.--The term `produced' includes manufactured.
            ``(8) Uniform energy factor.--The term `Uniform Energy 
        Factor' is a metric used to measure the efficiency of consumer 
        water heaters, with details specified in applicable Department 
        of Energy test procedures.
            ``(9) Coefficient of performance.--The term `Coefficient of 
        Performance' means the ratio of heat output to energy input, 
        with details specified in applicable Department of Energy test 
        procedures. For gas commercial heat pump water heaters, until 
        there is a Department of Energy test procedure, American 
        National Standards Institute and American Society of Heating, 
        Refrigerating and Air-Conditioning Engineers Standard 118.1 
        shall be used. For gas commercial heat pumps, until there is a 
        Department of Energy test procedure, American National 
        Standards Standard Z21.40.4 shall be used. For industrial heat 
        pumps, until there is a Department Energy test procedure, 
        manufacturers may use their own tests, provided they publicly 
        post the test conditions and assumptions they used in 
        developing their stated Coefficient of Performance values.
    ``(i) Special Rules.--For purposes of this section:
            ``(1) In general.--Rules similar to the rules of 
        subsections (c), (d), and (e) of section 52 shall apply.
            ``(2) Controlled group.--
                    ``(A) In general.--All persons treated as a single 
                employer under subsection (a) or (b) of section 52 or 
                subsection (m) or (o) of section 414 shall be treated 
                as a single producer.
                    ``(B) Inclusion of foreign corporations.--For 
                purposes of subparagraph (A), in applying subsections 
                (a) and (b) of section 52 to this section, section 1563 
                shall be applied without regard to subsection (b)(2)(C) 
                thereof.
            ``(3) Verification.--No amount shall be allowed as a credit 
        under subsection (a) with respect to which the taxpayer has not 
        submitted such information or certification as the Secretary, 
        in consultation with the Secretary of Energy, determines 
        necessary.
            ``(4) Production in united states.--The requirement for 
        production in the United States in subsection (c) shall not 
        take effect until January 1, 2025.''.
    (b) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1, as amended by this Act, is 
further amended by adding after the item relating to section 45V the 
following new item:

``Sec. 45W. Manufacturer credit for high-efficiency heat pumps and heat 
                            pump water heaters.''.

SEC. 210. OTHER AUTHORIZATIONS OF APPROPRIATIONS.

    (a) Amendment to America Competes Act.--Section 5012(o)(2) of the 
America COMPETES Act (42 U.S.C. 16538(o)(2)) is amended by striking 
subparagraphs (B) through (E) and inserting the following:
                    ``(B) $569,000,000 for fiscal year 2022;
                    ``(C) $713,000,000 for fiscal year 2023;
                    ``(D) $856,000,000 for fiscal year 2024; and
                    ``(E) $1,000,000,000 for fiscal year 2025.''.
    (b) Regional Innovation Models.--There are authorized to be 
appropriated to the Secretary for purposes of developing regional 
innovation models--
            (1) $100,000,000 for fiscal year 2022;
            (2) $200,000,000 for fiscal year 2023;
            (3) $300,000,000 for fiscal year 2024; and
            (4) $500,000,000 for fiscal year 2025.
    (c) Grid Modernization.--There are authorized to be appropriated to 
the Secretary for purposes of research, development, demonstration, 
analysis, technology validation, market transformation, and technical 
assistance to support grid modernization--
            (1) $238,000,000 for fiscal year 2022;
            (2) $375,000,000 for fiscal year 2023;
            (3) $513,000,000 for fiscal year 2024; and
            (4) $650,000,000 for fiscal year 2025.
    (d) Advanced Land-Based and Offshore Wind Power.--There are 
authorized to be appropriated to the Secretary for the purposes of 
research, development, demonstration, analysis, technology validation, 
market transformation, and technical assistance to support advanced 
land-based and offshore wind power--
            (1) $178,000,000 for fiscal year 2022;
            (2) $252,000,000 for fiscal year 2023;
            (3) $326,000,000 for fiscal year 2024; and
            (4) $400,000,000 for fiscal year 2025.
    (e) Advanced Solar Power.--There are authorized to be appropriated 
to the Secretary for the purposes of research, development, 
demonstration, analysis, technology validation, market transformation, 
and technical assistance to support advanced solar power--
            (1) $360,000,000 for fiscal year 2022;
            (2) $440,000,000 for fiscal year 2023;
            (3) $520,000,000 for fiscal year 2024; and
            (4) $600,000,000 for fiscal year 2025.
    (f) Mechanical, Chemical, and Thermal Storage Technology.--There 
are authorized to be appropriated to the Secretary for the purposes of 
research, development, demonstration, analysis, technology validation, 
market transformation, and technical assistance to support mechanical, 
chemical, and thermal storage technology--
            (1) $150,000,000 for fiscal year 2022;
            (2) $150,000,000 for fiscal year 2023;
            (3) $150,000,000 for fiscal year 2024; and
            (4) $150,000,000 for fiscal year 2025.
    (g) Buildings.--There are authorized to be appropriated to the 
Secretary for the purposes of research, development, demonstration, 
analysis, technology validation, market transformation, and technical 
assistance to support technologies that improve the energy efficiency 
of building equipment, the building envelope, building controls, and 
that improve information sharing between the building and the grid, 
which technologies may include energy efficiency, demand response, and 
electrification technologies in residential, commercial, and industrial 
buildings--
            (1) $381,000,000 for fiscal year 2022;
            (2) $478,000,000 for fiscal year 2023;
            (3) $574,000,000 for fiscal year 2024; and
            (4) $670,000,000 for fiscal year 2025.
    (h) Industry.--There are authorized to be appropriated to the 
Secretary for the purposes of research, development, demonstration, 
analysis, technology validation, market transformation, and technical 
assistance to support technologies to reduce emissions in industrial 
and manufacturing processes, including such technologies relating to 
energy efficiency and electrification--
            (1) $381,000,000 for fiscal year 2022;
            (2) $478,000,000 for fiscal year 2023;
            (3) $574,000,000 for fiscal year 2024; and
            (4) $840,000,000 for fiscal year 2025.
    (i) Enhanced Geothermal Technologies.--There are authorized to the 
Secretary for the purposes of research, development, and demonstration 
of enhanced geothermal technologies an increase in the amount from 
fiscal year 2019 appropriations by $100,000,000 for each year until 
fiscal year 2026, of which--
            (1) $70,000,000 is authorized for the Secretary to use each 
        year to establish a supercritical enhanced geothermal system 
        demonstration program; and
            (2) $30,000,000 is authorized for the Secretary to use each 
        year in collaboration with the National Laboratories for 
        supercritical enhanced geothermal systems research and 
        development.

         TITLE III--EXISTING AND ADVANCED NUCLEAR POWER PLANTS

SEC. 301. ZERO-EMISSIONS CREDIT PROGRAM.

    (a) Establishment.--Not later than 2 years after the date of 
enactment of this section, the Secretary shall establish a program to 
be known as the ``Zero-Emissions Credit Program''.
    (b) Issuance of Credits.--Under the Zero-Emissions Credit Program 
the Secretary shall, by not later than March 1 of each calendar year, 
issue zero-emissions credits to each owner or operator of a qualified 
nuclear power plant in the quantity that is equal to the number of 
megawatt-hours of electricity sold by such owner or operator to an 
organized power market in the prior year.
    (c) Payment for Credits.--
            (1) In general.--Except as provided in paragraphs (2), (3), 
        and (4), under the Zero-Emissions Credit Program the Secretary 
        shall pay an owner or operator of a qualified nuclear power 
        plant $13.25 for each zero-emissions credit such owner or 
        operator submits to the Secretary.
            (2) Adjustments for inflation.--Each year the Secretary 
        shall adjust the amount paid for each zero-emissions credit to 
        account for the effects of inflation based on the Consumer 
        Price Index for All Urban Consumers (as published by the Bureau 
        of Labor Statistics of the Department of Labor).
            (3) Reduction in value of credit.--If the price for the 
        sale of electricity to an organized power market increases in a 
        calendar year such that payments for zero-emissions credits 
        under paragraph (1) are no longer needed to prevent the 
        retirement of a qualified nuclear power plant in the subsequent 
        year, the Secretary shall, after the application of any 
        adjustment under paragraph (2), reduce the amount to be paid 
        for each zero-emissions credit to the owner or operator of such 
        qualified nuclear power plant to account for such change in 
        price.
            (4) Offset for value of clean electricity credits.--If the 
        owner or operator of a qualified nuclear power plant is issued 
        any clean electricity credits under section 611 of the Public 
        Utility Regulatory Policies Act of 1978 (as added by section 
        402 of this Act) in a calendar year in which such owner or 
        operator is issued zero-emissions credits, the Secretary shall 
        reduce the amount paid for such zero-emissions credits by the 
        value of such clean electricity credits.
    (d) Termination Date.--The Zero-Emissions Credit Program shall 
terminate on the date that is 5 years after the program effective date.
    (e) Rulemaking.--Not later than 1 year after the date of enactment 
of this section, the Secretary shall issue a final rule to carry out 
this section.
    (f) Definitions.--In this section:
            (1) Clean electricity credit.--The term ``clean electricity 
        credit'' has the meaning given such term in section 611(g) of 
        the Public Utility Regulatory Policies Act of 1978 (as added by 
        section 402 of this Act).
            (2) Organized power market.--The term ``organized power 
        market'' means any market that is controlled by a Regional 
        Transmission Organization or an Independent System Operator, as 
        such terms are defined in section 3 of the Federal Power Act 
        (16 U.S.C. 796).
            (3) Program effective date.--The term ``program effective 
        date'' has the meaning given such term in section 611(g) of the 
        Public Utility Regulatory Policies Act of 1978 (as added by 
        section 402 of this Act).
            (4) Qualified nuclear power plant.--
                    (A) In general.--The term ``qualified nuclear power 
                plant'' means any nuclear power plant the Secretary 
                determines, by not later than 2 years after the date of 
                enactment of this Act and based on an application 
                submitted by such plant to the Secretary, is not 
                financially viable or will otherwise be required to 
                retire if it does not receive zero-emissions credits 
                under the Zero-Emissions Credit Program.
                    (B) Exclusion.--The term ``qualified nuclear power 
                plant'' does not include a nuclear power plant with 
                respect to which a tax credit under section 48 of the 
                Internal Revenue Code of 1986 is claimed in the taxable 
                year prior to the taxable year in which the Secretary 
                makes the determination under subparagraph (A).
            (5) Zero-emissions credit.--The term ``zero-emissions 
        credit'' means a credit issued by the Secretary under the Zero-
        Emissions Credit Program that represents 1 megawatt-hour of 
        electricity sold by the owner or operator of a qualified 
        nuclear power plant to an organized power market.

SEC. 302. INVESTMENT TAX CREDIT FOR NUCLEAR ENERGY PROPERTY.

    (a) In General.--Section 48(a)(3)(A) of the Internal Revenue Code 
of 1986, as amended by section 204, is amended by striking ``or'' at 
the end of clause (xi), by adding ``or'' at the end of clause (xii), 
and by adding at the end the following new clause:
                            ``(xiii) qualified nuclear energy 
                        property.''.
    (b) Eligible for 30-Percent Credit.--Section 48(a)(2)(A)(i) of such 
Code is amended by striking ``and'' in subclause (IV) and by adding at 
the end the following new subclause:
                                    ``(VI) energy property described in 
                                paragraph (3)(A)(xiii), but only with 
                                respect to property placed in service 
                                before January 1, 2024, and''.
    (c) Qualified Nuclear Energy Property.--Section 48(c) of such Code, 
as amended by section 204, is amended by adding at the end the 
following new paragraph:
            ``(10) Qualified nuclear energy property.--
                    ``(A) In general.--The term `qualified nuclear 
                energy property' means, with respect to a qualifying 
                nuclear power plant--
                            ``(i) amounts paid or incurred for the 
                        refueling of such power plant, and
                            ``(ii) any expenditure described in section 
                        263(a).
                    ``(B) Qualifying nuclear power plant.--The term 
                `qualifying nuclear power plant' means a nuclear power 
                plant which--
                            ``(i) submits an application for license 
                        renewal to the Nuclear Regulatory Commission in 
                        accordance with part 54 of title 10, Code of 
                        Federal Regulations, before January 1, 2026, or
                            ``(ii) certifies to the Secretary (at such 
                        time and in such form and in such manner as the 
                        Secretary may prescribe) that such plant will 
                        submit an application for license renewal to 
                        the Nuclear Regulatory Commission in accordance 
                        with part 54 of title 10, Code of Federal 
                        Regulations, before January 1, 2026.
                    ``(C) Special rules.--
                            ``(i) Basis.--For purposes of subsection 
                        (a), the cumulative amounts paid or incurred by 
                        the taxpayer during the taxable year with 
                        respect to a qualifying nuclear power plant 
                        which are properly chargeable to capital 
                        account shall be treated as the basis of the 
                        qualified nuclear energy property placed in 
                        service for that taxable year.
                            ``(ii) Placed in service.--For purposes of 
                        subsection (a), qualified nuclear energy 
                        property shall be treated as having been placed 
                        in service on the last day of the taxable year 
                        in which the taxpayer pays or incurs such 
                        amounts described in clause (i).
                            ``(iii) Recapture.--The Secretary shall 
                        provide by regulations for the recapture of any 
                        credit allowable under subsection (a) to any 
                        qualifying nuclear power plant which makes a 
                        certification pursuant to subparagraph (B) but 
                        does not file an application of license renewal 
                        to the Nuclear Regulatory Commission in 
                        accordance with part 54 of title 10, Code of 
                        Federal Regulations, before January 1, 2026.''.
    (d) Phaseout of 30-Percent Credit Rate for Nuclear Energy 
Property.--Section 48(a) of such Code is amended by adding at the end 
the following new paragraph:
            ``(8) Phaseout for qualified nuclear energy property.--In 
        the case of qualified nuclear energy property, the energy 
        percentage determined under paragraph (2) shall be equal to--
                    ``(A) in the case of any property placed in service 
                after December 31, 2023, and before January 1, 2025, 26 
                percent, and
                    ``(B) in the case of any property placed in service 
                after December 31, 2022, and before January 1, 2026, 22 
                percent.''.
    (e) Coordination With Credit for Production From Advanced Nuclear 
Power Facilities.--Section 48(a)(3) of such Code is amended by 
inserting ``or section 45J'' after ``section 45''.
    (f) Transfer of Credit by Certain Public Entities.--
            (1) In general.--Section 48 of such Code is amended by 
        adding at the end the following new subsection:
    ``(e) Special Rule for Qualified Nuclear Energy Property.--
            ``(1) In general.--In the case of any qualified nuclear 
        energy property, if, with respect to a credit under subsection 
        (a) for any taxable year--
                    ``(A) the taxpayer is a qualified public entity, 
                and
                    ``(B) such qualified public entity elects the 
                application of this subsection for such taxable year 
                with respect to such credit (or any portion thereof), 
                the eligible project partner specified in such election 
                shall be treated as the taxpayer for purposes of this 
                title with respect to such credit (or such portion 
                thereof).
            ``(2) Definitions.--For purposes of this subsection:
                    ``(A) Qualified public entity.--The term `qualified 
                public entity' means--
                            ``(i) a Federal, State, or local government 
                        entity, or any political subdivision, agency, 
                        or instrumentality thereof,
                            ``(ii) a mutual or cooperative electric 
                        company described in section 501(c)(12) or 
                        section 1381(a)(2), or
                            ``(iii) a not-for-profit electric utility 
                        which received a loan or loan guarantee under 
                        the Rural Electrification Act of 1936.
                    ``(B) Eligible project partner.--The term `eligible 
                project partner' means--
                            ``(i) any person responsible for operating, 
                        maintaining, or repairing the qualifying 
                        nuclear power plant to which the credit under 
                        subsection (a) relates,
                            ``(ii) any person who participates in the 
                        provision of the nuclear steam supply system to 
                        the qualifying nuclear power plant to which the 
                        credit under subsection (a) relates,
                            ``(iii) any person who participates in the 
                        provision of nuclear fuel to the qualifying 
                        nuclear power plant to which the credit under 
                        subsection (a) relates, or
                            ``(iv) any person who has an ownership 
                        interest in such facility.
            ``(3) Special rules.--
                    ``(A) Application to partnerships.--In the case of 
                a credit under subsection (a) which is determined with 
                respect to qualified nuclear energy property at the 
                partnership level--
                            ``(i) for purposes of paragraph (1)(A), a 
                        qualified public entity shall be treated as the 
                        taxpayer with respect to such entity's 
                        distributive share of such credit, and
                            ``(ii) the term `eligible project partner' 
                        shall include any partner of the partnership.
                    ``(B) Taxable year in which credit taken into 
                account.--In the case of any credit (or portion 
                thereof) with respect to which an election is made 
                under subsection (e), such credit shall be taken into 
                account in the first taxable year of the eligible 
                project partner ending with, or after, the qualified 
                public entity's taxable year with respect to which the 
                credit was determined.
                    ``(C) Treatment of transfer under private use 
                rules.--For purposes of section 141(b)(1), any benefit 
                derived by an eligible project partner in connection 
                with an election under this subsection shall not be 
                taken into account as a private business use.''.
            (2) Special rule for proceeds of transfers for mutual or 
        cooperative electric companies.--Section 501(c)(12) of such 
        Code is amended by adding at the end the following new 
        subparagraph:
                    ``(K) In the case of a mutual or cooperative 
                electric company described in this paragraph or an 
                organization described in section 1381(a)(2), income 
                received or accrued in connection with an election 
                under section 48(e) shall be treated as an amount 
                collected from members for the sole purpose of meeting 
                losses and expenses.''.
    (g) Conforming Amendment.--Section 48(a)(2)(A) of such Code is 
amended by striking ``paragraphs (6) and (7)'' and inserting 
``paragraphs (6), (7), and (8)''.
    (h) Effective Date.--The amendments made by this section shall 
apply to periods after December 31, 2020, in taxable years ending after 
such date, under rules similar to the rules of section 48(m) of the 
Internal Revenue Code of 1986 (as in effect on the day before the 
enactment of the Revenue Reconciliation Act of 1990).

SEC. 303. EXPANDING FEDERAL CLEAN ELECTRICITY PURCHASING REQUIREMENTS.

    (a) Federal Purchase Requirement.--Section 203 of the Energy Policy 
Act of 2005 (42 U.S.C. 15852) is amended--
            (1) in subsection (a), by striking ``, the following 
        amounts shall be renewable energy:'' and inserting ``, such 
        amount shall be made up of the following:'';
            (2) in subsection (a)(1), by inserting ``shall be renewable 
        energy'' after ``2009'';
            (3) in subsection (a)(2), by inserting ``shall be renewable 
        energy'' after ``2012'';
            (4) in subsection (a)(3), by striking ``7.5 percent in 
        fiscal year 2013 and each fiscal year thereafter.'' and 
        inserting ``7.5 percent in fiscal years 2013 through 2020 shall 
        be renewable energy.'';
            (5) in subsection (a), by adding at the end the following:
            ``(4) Not less than 35 percent in fiscal year 2021 and each 
        year thereafter shall be clean electricity.'';
            (6) in subsection (b), by adding at the end the following:
            ``(3) Clean electricity.--The term `clean electricity' 
        means--
                    ``(A) renewable energy;
                    ``(B) electric energy generated by a nuclear power 
                plant; and
                    ``(C) electric energy generated by a power plant 
                equipped with carbon capture utilization and storage 
                technology, from which at least 90 percent of the 
                carbon dioxide output of such plant is captured and 
                utilized, or stored in a manner that prevents emission 
                to the atmosphere.'';
            (7) in subsection (c), by striking ``renewable energy'' and 
        inserting ``clean electricity'' in each place it occurs;
            (8) by redesignating subsection (d) as subsection (e); and
            (9) by inserting after subsection (c) the following:
    ``(d) Power Purchase Agreement.--For the purposes of this section, 
the Secretary may enter into a power purchase agreement for any amount 
of the electricity generated by a nuclear power plant for the duration 
of the operational life of such nuclear power plant if such nuclear 
power plant supplies electricity for purposes of national security or 
mission-critical activities.''.
    (b) Long-Term Nuclear Power Purchase Agreement Pilot Program.--
Subtitle B of title VI of the Energy Policy Act of 2005 is amended by 
adding at the end the following:

``SEC. 639A. LONG-TERM NUCLEAR POWER PURCHASE AGREEMENT PILOT PROGRAM.

    ``(a) Establishment.--The Secretary shall establish and carry out a 
pilot program to enter into long-term power purchase agreements for 
electricity generated by commercial nuclear power plants.
    ``(b) Requirements.--In carrying out the pilot program established 
under subsection (a), the Secretary shall--
            ``(1) consult and coordinate with the heads of other 
        Federal agencies that may benefit from purchasing nuclear power 
        for a period of longer than 10 years, including--
                    ``(A) the Secretary of Defense;
                    ``(B) the Administrator of General Services; and
                    ``(C) the Secretary of Homeland Security; and
            ``(2) not later than 10 years after the date of enactment 
        of this section, enter into at least 1 power purchase agreement 
        with the owner or operator of a commercial nuclear power plant 
        for up to 30 years.
    ``(c) Priority.--In carrying out the pilot program established 
under subsection (a), the Secretary shall prioritize entering into a 
power purchase agreement with the owner or operator of a commercial 
nuclear power plant--
            ``(1) to which a license is issued under section 103 of the 
        Atomic Energy Act of 1954 (42 U.S.C. 2133) after January 1, 
        2021;
            ``(2) that uses first-of-a-kind or early deployment nuclear 
        technology; and
            ``(3) that can provide reliable and resilient power--
                    ``(A) to high-value assets for national security 
                purposes; or
                    ``(B) for other purposes that the Secretary 
                determines are in the national interest, including in 
                remote off-grid scenarios or grid-connected scenarios 
                for which such commercial nuclear power plant can 
                provide capabilities commonly known as `islanding power 
                capabilities'.
    ``(d) Effect on Rates.--A power purchase agreement entered into 
under this section may be at a rate that is higher than the average 
market rate if the power purchase agreement fulfills a purpose 
described in subsection (c).''.
    (c) Table of Contents.--The table of contents of the Energy Policy 
Act of 2005 (Public Law 109-58; 119 Stat. 594) is amended by inserting 
after the item relating to section 639 the following:

``Sec. 639A. Long-term nuclear power purchase agreement pilot 
                            program.''.
    (d) Authorization of Long-Term Power Purchase Agreements.--Section 
501(b)(1) of title 40, United States Code, is amended by striking 
subparagraph (B) and inserting the following:
                    ``(B) Public utility contracts.--
                            ``(i) Term.--
                                    ``(I) In general.--A contract under 
                                this paragraph to purchase electricity 
                                service from a public utility may be 
                                for a period of not more than 40 years.
                                    ``(II) Other public utility 
                                services.--A contract under this 
                                paragraph for a public utility service 
                                other than a service described in 
                                subclause (I) may be for a period of 
                                not more than 10 years.
                            ``(ii) Costs.--The cost of a contract under 
                        this paragraph for any fiscal year may only be 
                        paid from the appropriations for that fiscal 
                        year.''.

SEC. 304. MODERNIZING THE NUCLEAR REGULATORY COMMISSION.

    (a) Reducing the Administrative Burden of Licensing Advanced 
Nuclear Reactors.--
            (1) Report.--Not later than 90 days after the date of 
        enactment of this section, the Commission shall submit to the 
        Committee on Energy and Commerce of the House of 
        Representatives and the Committee on Energy and Natural 
        Resources of the Senate a report that recommends how to improve 
        the processes, procedures, and, if appropriate, regulations of 
        the Commission with respect to licensing, certification, and 
        approval of advanced nuclear reactors pursuant to the Atomic 
        Energy Act of 1954 (42 U.S.C. 2011 et seq.).
            (2) Required recommendations.--The report submitted under 
        paragraph (1) shall include recommendations to--
                    (A) improve, accelerate, and reduce the cost of all 
                Commission actions with respect to licensing, 
                certification, and approval of advanced nuclear 
                reactors pursuant to the Atomic Energy Act of 1954 (42 
                U.S.C. 2011 et seq.), including actions to improve 
                compliance with section 102(2)(C) of the National 
                Environmental Policy Act of 1969 (42 U.S.C. 
                4332(2)(C));
                    (B) emphasize risk-informed and performance-based 
                regulatory approaches; and
                    (C) enable the Commission to finalize review of an 
                application for certification of a design of an 
                advanced nuclear reactor pursuant to the Atomic Energy 
                Act of 1954 (42 U.S.C. 2011 et seq.) by not later than 
                2 years after the date on which such application is 
                filed.
            (3) Definitions.--In this subsection:
                    (A) Advanced nuclear reactor.--The term ``advanced 
                nuclear reactor'' has the meaning given such term in 
                section 951(b)(1) of the Energy Policy Act of 2005 (42 
                U.S.C. 16271(b)(1)).
                    (B) Commission.--The term ``Commission'' means the 
                Nuclear Regulatory Commission.
    (b) Study on Elimination of Foreign Licensing Restrictions.--Not 
later than 18 months after the date of enactment of this section, the 
Comptroller General, in consultation with the Secretary, shall submit 
to Congress a report containing the results of a study on the 
feasibility and implications of repealing restrictions related to 
foreign ownership and control under sections 103 d. and 104 d. of the 
Atomic Energy Act of 1954 (42 U.S.C. 2133(d) and 2134(d)).
    (c) Study on the Impact of the Elimination of Mandatory Hearings 
for Uncontested Licensing Applications.--Not later than 18 months after 
the date of enactment of this section, the Comptroller General, in 
consultation with the Secretary, shall submit to Congress a report 
containing the results of a study on the estimated effect of 
eliminating the requirement under section 189 of the Atomic Energy Act 
of 1954 (42 U.S.C. 2239) to hold a hearing for uncontested 
applications.
    (d) Definitions.--Section 11 of the Atomic Energy Act of 1954 (42 
U.S.C. 2014) is amended by adding at the end the following:
    ``jj. Early Site Permit.--In sections 182, 189, and 194, the term 
`early site permit' has the meaning given such term in section 52.1 of 
title 10, Code of Federal Regulations (as in effect on the date of 
enactment of this subsection).''.
    (e) Application Reviews for Nuclear Energy Projects.--
            (1) License applications.--Section 182 of the Atomic Energy 
        Act of 1954 (42 U.S.C. 2232) is amended by adding at the end 
        the following:
    ``e. Streamlining Application Review.--With respect to an 
application for a construction permit, operating license, or combined 
construction permit and operating license, the Commission shall--
            ``(1) undertake an expedited environmental review process 
        and issue any draft environmental impact statements (as 
        required pursuant to section 102(2)(C) the National 
        Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C))) for 
        the application not later than 12 months after the date on 
        which the application is accepted for docketing; and
            ``(2) complete the technical review process of the 
        application, issue any safety evaluation reports, and issue any 
        final environmental impact statements (as required pursuant to 
        section 102(2)(C) the National Environmental Policy Act of 1969 
        (42 U.S.C. 4332(2)(C))) for the application not later than 24 
        months after the date on which the application is accepted for 
        docketing.
    ``f. Production or Utilization Facility Located at an Existing 
Site.--In reviewing an application for an early site permit, 
construction permit, operating license, or combined construction permit 
and operating license for a proposed production facility or utilization 
facility that is to be located at the site of a production facility or 
utilization facility for which an early site permit, construction 
permit, operating license, or combined construction permit and 
operating license has been issued, the Commission shall, to the extent 
practicable, use information that was part of the determination to 
issue the license for such production facility or utilization 
facility.''.
            (2) Use of early site permit environmental impact 
        statement.--Chapter 16 of the Atomic Energy Act of 1954 (42 
        U.S.C. 2231 et seq.) is amended by adding at the end the 
        following:

``SEC. 194. USE OF EARLY SITE PERMIT ENVIRONMENTAL IMPACT STATEMENT.

    ``a. Supplemental Environmental Impact Statement.--Any 
environmental impact statement required pursuant to section 102(2)(C) 
the National Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)) 
for purposes of issuing a construction permit, operating license, or 
combined construction permit and operating license for a production 
facility or utilization facility, for which an early site permit has 
been issued, shall be prepared as a supplement to the environmental 
impact statement prepared for such early site permit.
    ``b. Incorporation by Reference.--A supplemental environmental 
impact statement prepared under subsection a. shall--
            ``(1) incorporate by reference the analysis, findings, and 
        conclusions from the environmental impact statement prepared 
        for the applicable early site permit; and
            ``(2) include additional discussion, analysis, findings, 
        and conclusions on matters resolved in the early site permit 
        proceeding only to the extent necessary to address information 
        that--
                    ``(A) is new; and
                    ``(B) would materially change the prior findings or 
                conclusions.''.
    (f) Hearings.--
            (1) In general.--Section 189 of the Atomic Energy Act of 
        1954 (42 U.S.C. 2239) is amended--
                    (A) in subsection a. (1) (B)--
                            (i) by striking clause (iv); and
                            (ii) by redesignating clause (v) as clause 
                        (iv); and
                    (B) by adding at the end the following:
    ``c. Hearing Procedures.--All hearings under this section shall be 
conducted using informal adjudicatory procedures, unless the Commission 
determines that formal adjudicatory procedures are necessary--
            ``(1) to develop a sufficient record; or
            ``(2) to achieve fairness.
    ``d. Hearing on Early Site Permit, Construction Permit, Operating 
License, and Combined Construction Permit and Operating License.--
            ``(1) In general.--Notwithstanding any outstanding request 
        for a hearing, the Commission shall issue and make immediately 
        effective any early site permit, construction permit, operating 
        license, or combined construction permit and operating license 
        for a production facility or utilization facility upon the 
        Commission's finding that the application therefor satisfies 
        the requirements of this Act.
            ``(2) Appropriate action.--Following completion of any 
        required hearing, the Commission shall take any appropriate 
        action with respect to the early site permit, construction 
        permit, operating license, or combined construction permit and 
        operating license to the extent necessary to account for the 
        decision in any such required hearing.''.
            (2) Licensing of uranium enrichment facilities.--Section 
        193(b) of the Atomic Energy Act of 1954 (42 U.S.C. 2243(b)) is 
        amended--
                    (A) by amending paragraph (1) to read as follows:
            ``(1) In general.--Upon a request for a hearing on the 
        licensing of construction and operation of a uranium enrichment 
        facility under sections 53 and 63, the Commission shall conduct 
        a single adjudicatory hearing.''; and
                    (B) in paragraph (2), by striking ``Such hearing'' 
                and inserting ``If a hearing is held under paragraph 
                (1), the hearing''.
    (g) Technical Amendment.--Section 103 d. of the Atomic Energy Act 
of 1954 (42 U.S.C. 2133d.) is amended by striking ``or any any'' and 
inserting ``or any''.
    (h) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated to 
        carry out subsections (a), (b), and (c) $20,000,000 for each of 
        fiscal years 2021 through 2031, to remain available until 
        expended.
            (2) Off-fee appropriation.--Any funds appropriated to carry 
        out subsections (a), (b), and (c) may not be recovered by the 
        Commission through the collection of user fees from existing 
        licensees.

SEC. 305. DEMONSTRATION AND EARLY DEPLOYMENT OF ADVANCED NUCLEAR 
              REACTORS.

    (a) Demonstration Projects.--Section 959A(c) of the Energy Policy 
Act of 2005 (42 U.S.C. 16279a(c)) is amended--
            (1) by redesignating paragraphs (1) through (10) as 
        paragraphs (2) through (11), respectively;
            (2) by inserting after ``the Secretary shall--'' the 
        following:
            ``(1) not later than December 31, 2025, establish a program 
        to enter into agreements to carry out no fewer than 5 
        demonstration projects pursuant to subsection (b)(1) to 
        demonstrate the suitability of advanced nuclear reactors for 
        commercial applications;'';
            (3) in paragraph (10)(A), as redesignated by paragraph (1) 
        of this subsection, by striking ``paragraph (8)'' and inserting 
        ``paragraph (9)''; and
            (4) in paragraph (11), as redesignated by paragraph (1) of 
        this subsection, by striking ``paragraph (8)'' and inserting 
        ``paragraph (9)'' and by striking ``paragraph (9)'' and 
        inserting ``paragraph (10)''.
    (b) Research and Development Goals.--Section 959A of such Act (42 
U.S.C. 16279a(c)) is amended--
            (1) by redesignating subsection (f) as subsection (g); and
            (2) by inserting after subsection (e) the following:
    ``(f) Research Goals.--
            ``(1) In general.--The Secretary shall establish and 
        annually update goals for the research to support the 
        demonstration of advanced reactors under subsection (c) and the 
        deployment of subsequent advanced reactors.
            ``(2) Coordination.--In developing and updating the goals, 
        the Secretary shall coordinate with members of private 
        industry.
            ``(3) Requirements.--In developing the goals, the Secretary 
        shall ensure that--
                    ``(A) research activities are focused on--
                            ``(i) key areas of nuclear research, 
                        development, and deployment that range from 
                        basic research on advanced nuclear reactor 
                        generation to full-design development, safety 
                        evaluation, and licensing;
                            ``(ii) resolving materials challenges 
                        relating to radiation damage or corrosive 
                        coolants; and
                            ``(iii) qualification of advanced nuclear 
                        fuel;
                    ``(B) infrastructure, such as a versatile reactor-
                based fast neutron source, which is required to be 
                established in section 955(c)(1), or a molten salt 
                testing facility to aid in research, is constructed; 
                and
                    ``(C) advanced manufacturing and construction 
                techniques and materials are analyzed to identify 
                strategies to reduce the commercialization cost of 
                advanced nuclear reactors.''.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary $1,500,000,000 for each of fiscal years 
2022 through 2023 for each of the following:
            (1) Gateway for Accelerated Innovation in Nuclear vouchers.
            (2) Advanced nuclear technology development funding 
        opportunity announcements.
            (3) Advanced small modular nuclear reactor research and 
        development.
            (4) The advanced reactor demonstration program.
            (5) The Nuclear Reactor Innovation Center.
    (d) Authorization of Appropriation.--Section 2001(c) of division Z 
of the Consolidated Appropriations Act, 2021 (Public Law 116-260) is 
amended to read as follows:
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out research, development, 
demonstration, and transportation activities in this section 
$350,000,000 for each of fiscal years 2022 through 2031.''.

SEC. 306. AUTHORIZATION OF APPROPRIATIONS FOR LOAN GUARANTEES FOR 
              ADVANCED NUCLEAR FACILITIES.

    Section 1704 of the Energy Policy Act of 2005 (42 U.S.C. 16514) is 
amended by adding at the end the following:
    ``(c) Advanced Nuclear Energy Facilities.--There are authorized to 
be appropriated to the Secretary to make guarantees under section 
1703(b)(4) $10,000,000,000 for each of fiscal years 2022 through 2031, 
to remain available until expended.''.

SEC. 307. EXPANDING THE PRODUCTION TAX CREDIT FOR NUCLEAR POWER.

    (a) In General.--Section 45J of the Internal Revenue Code of 1986 
is amended--
            (1) in subsection (a)(1), by striking ``1.8 cents'' and 
        inserting ``2.7 cents''; and
            (2) in subsection (b)(5)(B)(i), by striking ``6,000 
        megawatts'' and inserting ``15,000 megawatts''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2020.

                  TITLE IV--CLEAN ELECTRICITY STANDARD

SEC. 401. CERTIFICATION OF COST-EFFECTIVE MARKET PENETRATION OF CLEAN 
              ELECTRICITY TECHNOLOGIES.

    (a) In General.--Title VI of the Public Utility Regulatory Policies 
Act of 1978 (16 U.S.C. 2601 et seq.) is amended by adding at the end 
the following:

``SEC. 610. FEDERAL DECARBONIZATION AND INNOVATION ASSESSMENT PROGRAM.

    ``(a) In General.--Not later than 2 years after the date of 
enactment of this section, the Secretary, after consultation with the 
Administrator of the Environmental Protection Agency, shall establish a 
program, to be known as the `Federal Decarbonization and Innovation 
Assessment Program', to annually review and monitor progress towards--
            ``(1) an 80 percent reduction in the amount of carbon 
        dioxide emitted by electricity generators, relative to the 
        amount of such emissions on the date of enactment of this 
        section, by 2050; and
            ``(2) cost-effective market penetration of eligible 
        technologies, as determined by the Secretary under subsection 
        (b).
    ``(b) Cost-Effective Market Penetration.--The Secretary shall 
determine that eligible technologies have achieved cost-effective 
market penetration if--
            ``(1) at least 3 gigawatts of new electricity generating 
        capacity using any type of eligible technology has come into 
        commercial operation since the date of enactment of this 
        section, provided that--
                    ``(A) less than 50 percent of the capital costs of 
                such new electricity generating capacity has been 
                subsidized with Federal funds; and
                    ``(B) at least 1 gigawatt of such capacity is coal-
                fired electricity generating capacity that is equipped 
                with carbon capture utilization and storage technology, 
                from which at least 90 percent of the carbon dioxide 
                output is captured and utilized or stored in a manner 
                that prevents emission to the atmosphere; and
            ``(2) at least one type of eligible technology--
                    ``(A) has similar operating characteristics as 
                fossil-fueled electricity generation technology, such 
                as dispatchability upon demand; and
                    ``(B) based on data provided by the Energy 
                Information Administration, has a total cost of 
                electricity generation that is not more than 10 percent 
                higher than the average total cost of electricity 
                generation from fossil-fueled electricity generators 
                that were constructed not earlier than 5 years prior to 
                the date of enactment of this section.
    ``(c) Certification of Cost-Effective Market Penetration.--Upon 
making the determination described under subsection (b), but no earlier 
than the date that is 5 years after the date of enactment of this 
section, the Secretary shall certify that cost-effective market 
penetration of eligible technology has occurred.
    ``(d) Definitions.--In this section:
            ``(1) Advanced dispatchable renewable energy system.--The 
        term `advanced dispatchable renewable energy system' means an 
        integrated system of energy storage technology deployed with 
        wind or solar electricity generation technology for which the 
        Secretary has determined that the availability of such 
        integrated system to be dispatched to support ongoing electric 
        grid reliability is similar to that of fossil-fueled 
        electricity generation technology.
            ``(2) Advanced nuclear power generation technology.--The 
        term `advanced nuclear power generation technology' has the 
        meaning given the term `advanced nuclear reactor' in section 
        951(b) of the Energy Policy Act of 2005 (42 U.S.C. 16271).
            ``(3) Eligible technology.--The term `eligible technology' 
        means any of the following:
                    ``(A) Advanced nuclear power generation technology.
                    ``(B) Advanced dispatchable renewable energy 
                system.
                    ``(C) Fossil-fueled electricity generation 
                technology equipped with carbon capture utilization and 
                storage technology, from which at least 90 percent of 
                the carbon dioxide output of the fossil-fueled 
                electricity generation technology is--
                            ``(i) captured and utilized; or
                            ``(ii) stored in a manner that prevents 
                        emission to the atmosphere.''.
    (b) Conforming Amendment.--Section 1(b) of the Public Utility 
Regulatory Policies Act of 1978 is amended by adding after the item 
relating to section 608 the following:

``Sec. 609. Rural and remote communities electrification grants.
``Sec. 610. Federal decarbonization and innovation assessment 
                            program.''.

SEC. 402. FEDERAL CLEAN ELECTRICITY STANDARD.

    (a) PURPA Amendments.--
            (1) In general.--Title VI of the Public Utility Regulatory 
        Policies Act of 1978 (16 U.S.C. 2601 et seq.) is further 
        amended by adding after section 610 (as added by this Act) the 
        following:

``SEC. 611. CLEAN ELECTRICITY STANDARD.

    ``(a) Clean Electricity Credit Program.--Not later than 180 days 
after the program trigger date and in accordance with this section, the 
Secretary shall establish a program--
            ``(1) to reduce the amount of carbon dioxide that is 
        emitted by electricity generators; and
            ``(2) under which clean electricity credits are issued, 
        tracked, and surrendered.
    ``(b) Issuance of Clean Electricity Credits.--
            ``(1) In general.--For each calendar year, beginning on the 
        program effective date, the Secretary shall issue clean 
        electricity credits to each qualifying electricity generator in 
        the amount determined under paragraph (2).
            ``(2) Determination of credits issued.--Except as provided 
        in paragraph (3), the number of clean electricity credits 
        issued under paragraph (1) shall be the number that is equal 
        to--
                    ``(A) the number of megawatt-hours of electricity 
                sold by the qualifying electricity generator; 
                multiplied by
                    ``(B) the number that is equal to--
                            ``(i) 1.0; less
                            ``(ii) the number that is equal to--
                                    ``(I) the annual carbon intensity 
                                of the qualifying electricity 
                                generator; divided by
                                    ``(II) 0.82.
            ``(3) Use of dynamic crediting methodology.--If a dynamic 
        crediting methodology is approved under section 612(c), the 
        Secretary shall use such methodology to determine the number of 
        clean electricity credits to issue under this subsection.
    ``(c) Surrender of Credits.--
            ``(1) In general.--For each compliance period each retail 
        electricity supplier shall, except as provided in paragraph (2) 
        and by not later than 6 months after the date on which the 
        compliance period ends, surrender the number of clean 
        electricity credits determined under paragraph (3).
            ``(2) Payment.--For each clean electricity credit required 
        to be surrendered under paragraph (1) that is not so 
        surrendered, a retail electricity supplier shall pay an amount 
        that is equal to the alternative compliance price determined 
        under paragraph (7).
            ``(3) Number of credits.--
                    ``(A) In general.--As determined by the Secretary, 
                the number of clean electricity credits required to be 
                surrendered under paragraph (1) by each retail 
                electricity supplier shall be equal to--
                            ``(i) the percentage determined under 
                        subparagraph (B); multiplied by
                            ``(ii) the number of megawatt-hours of 
                        electricity sold at retail by the retail 
                        electricity supplier during the applicable 
                        compliance period.
                    ``(B) Determination of percentage.--
                            ``(i) Reduction requirement.--The Secretary 
                        shall determine the percentage to be applied in 
                        subparagraph (A)(i) for each compliance period 
                        that will result in an 80 percent reduction in 
                        the amount of carbon dioxide emitted by 
                        electricity generators, relative to the amount 
                        of such emissions on the date of enactment of 
                        this section, by 2050.
                            ``(ii) Linear changes.--The Secretary shall 
                        determine the percentage for each compliance 
                        period under clause (i) with the goal of 
                        achieving linear reductions in the amount of 
                        carbon dioxide emitted by electricity 
                        generators in each successive compliance 
                        period.
                    ``(C) First compliance period.--The percentage 
                determined under subparagraph (B) for the first 
                compliance period shall be the greater of--
                            ``(i) the percentage obtained by dividing--
                                    ``(I) the total number of clean 
                                electricity credits that would be 
                                issued under subsection (b)(2) for the 
                                year in which this section is enacted; 
                                by
                                    ``(II) the total number of 
                                megawatt-hours of electricity sold by 
                                retail electricity suppliers in the 
                                year in which this section is enacted; 
                                and
                            ``(ii) the percentage obtained by 
                        dividing--
                                    ``(I) the total number of clean 
                                electricity credits projected to be 
                                issued under paragraph (4)(B) for 2030; 
                                by
                                    ``(II) the total number of 
                                megawatt-hours projected to be sold by 
                                retail electricity suppliers in 2030.
            ``(4) Projections.--
                    ``(A) Early projection for first compliance 
                period.--Not later than the date that is 2 years after 
                the date of enactment of this section, the Secretary 
                shall publish a projection of the percentage to be used 
                for purposes of paragraph (3)(A)(i) for the first 
                compliance period, which such projection shall be made 
                based on the number of megawatt-hours of electricity 
                sold by qualifying electricity generators during the 
                period of five years that precedes the date of the 
                projection and the associated carbon dioxide emissions.
                    ``(B) 2030 projection.--By not later than 2026, the 
                Secretary shall publish a projection of the number of 
                clean electricity credits that would be issued to 
                qualifying electricity generators in 2030.
            ``(5) Single use of credits.--Each clean electricity credit 
        issued under subsection (b) may only be surrendered once for 
        purposes of complying with the requirements of paragraph (1).
            ``(6) Banking of clean electricity credits.--A clean 
        electricity credit issued under subsection (b) may be 
        surrendered for the compliance period in which the clean 
        electricity credit is issued or in any subsequent compliance 
        period.
            ``(7) Alternative compliance price.--
                    ``(A) Initial amount.--The alternative compliance 
                price for the first compliance period shall be $30 per 
                applicable clean electricity credit.
                    ``(B) Annual adjustments to alternative compliance 
                price.--
                            ``(i) In general.--Beginning after the 
                        first compliance period, the Secretary shall 
                        increase the amount of the alternative 
                        compliance price from the amount for the prior 
                        compliance period by 5 percent.
                            ``(ii) Other adjustments.--The Secretary 
                        may adjust the alternative compliance price to 
                        account for inflation, as the Secretary may 
                        determine necessary.
    ``(d) Civil Penalties.--
            ``(1) In general.--Subject to paragraph (2), a retail 
        electricity supplier that fails to meet the requirements of 
        paragraph (1) or (2) of subsection (c) shall be subject to a 
        civil penalty in an amount equal to--
                    ``(A) the number of megawatt-hours of electricity 
                sold by the retail electricity supplier for which such 
                retail electricity supplier fails to surrender a clean 
                electricity credit or make an alternative compliance 
                payment as required under subsection (c); multiplied by
                    ``(B) 200 percent of the value of the applicable 
                alternative compliance price.
            ``(2) Procedure for assessing penalty.--The Secretary shall 
        assess a civil penalty under this subsection in accordance with 
        the procedures for assessing a penalty under section 333(d) of 
        the Energy Policy and Conservation Act (42 U.S.C. 6303(d)).
    ``(e) Savings Provision.--Nothing in this section affects the 
authority of a State, or a political subdivision of a State, to adopt 
or enforce any law relating to--
            ``(1) clean electricity or renewable energy;
            ``(2) carbon dioxide emissions; or
            ``(3) the regulation of a retail electricity supplier.
    ``(f) Regulations.--Not later than 1 year after the date of 
enactment of this section, the Secretary shall issue regulations to 
implement this section.
    ``(g) Definitions.--In this section:
            ``(1) Carbon intensity.--The term `carbon intensity' means, 
        as determined by the Secretary in consultation with the 
        Administrator of the Environmental Protection Agency and with 
        respect to a qualifying electricity generator, the amount (in 
        metric tons per megawatt-hour) obtained by dividing--
                    ``(A) the annual carbon dioxide emissions of the 
                qualifying electricity generator, excluding any carbon 
                dioxide that is captured and utilized or stored in a 
                manner that prevents emission to the atmosphere; by
                    ``(B) the annual quantity of electricity generated 
                by the qualifying electricity generator.
            ``(2) Clean electricity credit.--The term `clean 
        electricity credit' means a credit issued under subsection (b).
            ``(3) Clean electricity standard.--The term `clean 
        electricity standard' means the requirements of section 611.
            ``(4) Compliance period.--The term `compliance period' 
        means the 3-year period that begins on the program effective 
        date and each 3-year period thereafter until 2050.
            ``(5) Qualifying electricity generator.--The term 
        `qualifying electricity generator' means any electricity 
        generator that has an annual carbon intensity of less than 0.82 
        metric tons per megawatt-hour.
            ``(6) Retail electricity supplier.--The term `retail 
        electricity supplier' means an entity in the United States that 
        sold not fewer than 20 megawatt-hours of electricity to 
        electricity consumers for purposes other than resale during the 
        preceding calendar year.
            ``(7) Program trigger date.--The term `program trigger 
        date' means January 1 of the first calendar year beginning 
        after the date on which the Secretary certifies that cost-
        effective market penetration of eligible technologies has 
        occurred under section 610(c).
            ``(8) Program effective date.--The term `program effective 
        date' means the earlier of--
                    ``(A) the date that is 2 years after the program 
                trigger date; and
                    ``(B) January 1 of the first calendar year that 
                begins after the date that is 10 years after the date 
                of enactment of this section.

``SEC. 612. IDENTIFICATION, REVIEW, AND APPROVAL OF DYNAMIC CREDITING 
              METHODOLOGIES.

    ``(a) Identification of Dynamic Crediting Methodologies.--
            ``(1) In general.--Not later than 2 years after the date of 
        enactment of this section, the Secretary, in consultation with 
        the Administrator of the Environmental Protection Agency, shall 
        identify a dynamic crediting methodology for calculating the 
        amount of carbon dioxide emissions that are avoided or 
        displaced on an hourly basis by increased electricity 
        generation from qualifying electricity generators.
            ``(2) Consideration of regional differences.--Any dynamic 
        crediting methodology identified under paragraph (1) may 
        account for differences between--
                    ``(A) regions in which there is a Regional 
                Transmission Organization or an Independent System 
                Operator; and
                    ``(B) regions in which there are no such entities.
    ``(b) Commission Review of Dynamic Crediting Methodologies.--
            ``(1) In general.--The Secretary shall provide any dynamic 
        crediting methodology identified under subsection (a) to the 
        Commission for review.
            ``(2) Technical conference.--Not later than 120 days after 
        the Secretary provides a dynamic crediting methodology to the 
        Commission under paragraph (1), the Commission shall hold a 
        technical conference in partnership with State regulatory 
        authorities to evaluate such methodology.
            ``(3) Report.--Not later than 180 days after the Commission 
        holds a technical conference under paragraph (2), and after 
        providing an opportunity for public comment, the Commission 
        shall provide to the Secretary a report on the technical 
        conference that includes Commission recommendations concerning 
        the use of the dynamic crediting methodology.
    ``(c) Approval.--Not later than 180 days following receipt of the 
report provided under subsection (b)(3), the Secretary, in consultation 
with the Administrator of the Environmental Protection Agency, shall 
approve use of the dynamic crediting methodology that is the subject of 
such report if the Secretary determines that such use would--
            ``(1) significantly enhance confidence that the program 
        established under 611(a)(1) will help achieve an 80 percent 
        reduction in the amount of carbon dioxide emitted by 
        electricity generators, relative to the amount of such 
        emissions on the date of enactment of this section, by 2050; or
            ``(2) significantly reduce the costs of achieving such 
        reduction.
    ``(d) Use of Dynamic Crediting Methodologies.--
            ``(1) Adjustment to amount of credits.--If the Secretary 
        approves a dynamic crediting methodology under subsection (c), 
        the Secretary shall use such dynamic crediting methodology to 
        determine the number of clean electricity credits to be issued 
        to a qualifying electricity generator to account for the amount 
        of carbon dioxide emissions that are avoided or displaced on an 
        hourly basis by increased electricity generation from such 
        qualifying electricity generator.
            ``(2) Deadline.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the Secretary shall use a dynamic 
                crediting methodology approved under subsection (c) 
                beginning in the later of--
                            ``(i) the first full calendar year 
                        beginning after the date on which such approval 
                        occurs; and
                            ``(ii) the first calendar year of the first 
                        compliance period.
                    ``(B) Exception.--The Secretary may delay use of an 
                approved dynamic crediting methodology by 1 year if the 
                Secretary finds that additional time is needed for the 
                Secretary or the Commission to take actions necessary 
                to carry out subsection (e).
    ``(e) Implementation.--
            ``(1) In general.--The Secretary may, by rule, require that 
        Regional Transmission Organizations, Independent System 
        Operators, other balancing authorities, and other appropriate 
        entities provide the Secretary with the information necessary 
        for the Secretary to use a dynamic crediting methodology 
        approved under subsection (c).
            ``(2) Tariffs.--At the request of the Secretary, or upon 
        its own initiative, the Commission shall consider whether 
        changes to any tariffs on file pursuant to section 205 of the 
        Federal Power Act (16 U.S.C. 824d) are necessary to implement 
        the requirements of any rule issued by the Secretary under 
        paragraph (1).
    ``(f) Regional Transmission Organization; Independent System 
Operator.--The terms `Regional Transmission Organization' and 
`Independent System Operator' have the meanings given such terms in 
section 3 of the Federal Power Act (16 U.S.C. 796).
    ``(g) Definitions.--In this section, the terms `clean electricity 
credit', `compliance period', and `qualifying electricity generator' 
have the meanings given such terms in section 611.''.
            (2) Conforming amendment.--Section 1(b) of the Public 
        Utility Regulatory Policies Act of 1978 is further amended by 
        adding after the item related to section 610 (as added by this 
        Act) the following:

``Sec. 611. Clean electricity standard.
``Sec. 612. Identification, review, and approval of dynamic crediting 
                            methodologies.''.
    (b) Amendments to the Clean Air Act.--Section 111(a)(4) of the 
Clean Air Act (42 U.S.C. 7411(a)(4)) is amended--
            (1) by striking ``The term'' and inserting ``(A) The 
        term''; and
            (2) by adding at the end the following:
                    ``(B) Until the end of the first compliance period 
                of the clean electricity standard (as such terms are 
                defined in section 611(h) of Public Utility Regulatory 
                Policies Act of 1978), the term `modification', 
                notwithstanding subparagraph (A), does not include a 
                physical or operational change at an electricity 
                generating unit that is designed to reduce the amount 
                of carbon dioxide emitted per megawatt hour at 
                electricity utility generating units, provided that 
                such change--
                            ``(i) does not cause the violation of a 
                        national ambient air quality standard in an air 
                        quality control region in which an 
                        environmental justice community (as defined by 
                        the Administrator) exists; and
                            ``(ii) does not result in--
                                    ``(I) an increase in the maximum 
                                hourly emissions rate of any air 
                                pollutant subject to a national ambient 
                                air quality standard under section 109 
                                that is achievable by such unit; and
                                    ``(II) both a significant emissions 
                                increase and a significant net 
                                emissions increase in annual actual 
                                emissions of such pollutant from such 
                                unit.''.

SEC. 403. REGIONAL CLEAN ELECTRICITY PLANNING MODELS.

    (a) Development of Planning Models and Data.--Not later than 2 
years after the date of enactment this Act, the Secretary shall make 
available one or more regional electricity planning models and 
standardized data sets, including potential renewable energy hourly 
production profiles at all potential locations for renewable energy 
deployment, that States can use to develop plans for portfolios of 
clean electricity resources that are capable of achieving, at least 
cost, the goal described under section 610(a)(1) of the Public Utility 
Regulatory Policies Act of 1978, as added by section 402 of this Act, 
consistent with the need to maintain reliability.
    (b) Development Process.--In making planning models and data 
available under subsection (a), the Secretary shall--
            (1) solicit planning models and standardized, data sets 
        from the national laboratories and universities;
            (2) hold jointly with the Commission a technical conference 
        on planning models and standardized data sets, including hourly 
        profiles of renewable energy production at potential deployment 
        locations, and consider the input from such conference in 
        choosing planning models and data sets to make available; and
            (3) update the planning models and data sets made available 
        from time to time in response to new information.
    (c) Use of Models by States.--The Secretary shall encourage States 
to use the models and data sets to--
            (1) plan collaboratively with other States in the same 
        North American Electric Reliability Corporation reliability 
        region or organized electricity market on least-cost and 
        reliable compliance with the clean electricity standard (as 
        such term is defined in section 611(h) of the Public Utility 
        Regulatory Policies Act of 1978); and
            (2) adopt, and from time to time update, multi-State clean 
        electricity resource deployment goals that promote least-cost 
        deployment consistent with maintaining electric reliability.

SEC. 404. STAND-BY EMISSION PERFORMANCE STANDARDS.

    (a) Annual Review of Emissions.--Not later than February 1 of the 
first calendar year beginning after the date of enactment of this 
section, and each February 1 thereafter, the Secretary, in consultation 
with the Administrator of the Environmental Protection Agency, shall 
publish a determination of the annual average level of carbon dioxide 
emissions from electricity generators for the prior 3 calendar years.
    (b) Enforceability.--An emission limitation for carbon dioxide 
emissions from electric utility steam generating units established 
under title I of the Clean Air Act (42 U.S.C. 7401 et seq.) may be 
enforced by a State or by the Administrator of the Environmental 
Protection Agency--
            (1) before the program trigger date, only if--
                    (A) the Secretary, not earlier than 5 years after 
                the date of enactment of this Act, determines under 
                subsection (a) that the 5-year annual average level of 
                carbon dioxide emissions from electric utility steam 
                generating units exceeded the annual average level of 
                such emissions for the preceding 5-year period by at 
                least 6 percent; or
                    (B) the Secretary finds that significantly less 
                than the full amount of funding authorized for programs 
                under this Act has been appropriated, resulting in 
                substantial limitation to or delay of the technology 
                advancement elements of this Act; or
            (2) after the end of a compliance period, only if the clean 
        electricity standard is not enforced for the compliance period.
    (c) Clean Air Act Authorities.--Except as provided in this section, 
neither a State nor the Administrator of the Environmental Protection 
Agency may enforce any emission limitation established under title I of 
the Clean Air Act (42 U.S.C. 7401 et seq.) for carbon dioxide emissions 
from electric utility steam generating units.
    (d) Definitions.--In this section:
            (1) Clean electricity standard; program trigger date; 
        compliance period.--The terms ``clean electricity standard'', 
        ``program trigger date'', and ``compliance period'' have the 
        meanings given such terms in section 611(h) of the Public 
        Utility Regulatory Policies Act of 1978, as added by section 
        402 of this Act.
            (2) Electric utility steam generating unit.--The term 
        ``electric utility steam generating unit'' has the meaning 
        given such term in section 112(a) of the Clean Air Act (42 
        U.S.C. 7412(a)).

                         TITLE V--MISCELLANEOUS

SEC. 501. ADDITIONAL REQUIREMENTS.

    (a) Wages.--Notwithstanding any other provision of law and in a 
manner consistent with other provisions in this Act, all laborers and 
mechanics employed by contractors or subcontractors in the performance 
of construction, alteration, or repair work funded directly by or 
assisted in whole or in part by and through the Federal Government 
pursuant to this Act shall be paid wages at rates not less than those 
prevailing on projects of a character similar in the locality as 
determined by the Secretary of Labor in accordance with subchapter IV 
of chapter 31 of title 40, United States Code. With respect to the 
labor standards specified in this section, the Secretary of Labor shall 
have the authority and functions set forth in Reorganization Plan 
Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 of 
title 40, United States Code.
    (b) Exception.--Subsection (a) shall not apply to the use of a 
grant awarded under section 203.

SEC. 502. UTILIZATION OF QUALIFIED APPRENTICES BY CONSTRUCTION 
              CONTRACTORS.

    (a) In General.--All contractors and subcontractors engaged in the 
performance of construction, alteration, or repair work on a covered 
project shall, subject to subsection (b), ensure that not less than 15 
percent of the total labor hours of such work be performed by qualified 
apprentices.
    (b) Apprentice-to-Journeyworker Ratio.--The requirement under 
subsection (a) shall be subject to any applicable requirements for 
apprentice-to-journeyworker ratios of the Department of Labor or the 
applicable State apprenticeship agency.
    (c) Participation.--Each contractor and subcontractor who employs 4 
or more individuals to perform construction, alteration, or repair work 
on a covered project shall employ 1 or more qualified apprentices to 
perform such work.
    (d) Compliance.--(1) If the Secretary determines, upon receipt of a 
complaint or on the Secretary's own initiative, that a covered project 
is not being carried out in accordance with the requirements of this 
section, the Secretary shall withhold from payments otherwise due the 
contractor as a penalty, or require the payment by the contractor of a 
penalty, in the amount of not less than $5,000, but not more than 
$10,000, for each hour of the apprenticeship utilization requirement 
that is not achieved.
    (2) A determination by the Secretary under paragraph (1) shall be 
grounds for contract termination.
    (3) A contractor or subcontractor that violates the requirements of 
this section shall be prohibited from performing work on any covered 
project for 5 years.
    (e) Reporting Requirements.--(1) Before commencing work on a 
contract for a covered project, the contractor shall submit to the 
recipient of assistance and the Secretary an estimate of--
            (A) the total labor hours to be performed under the 
        contract; and
            (B) the number of qualified apprentices proposed to be 
        employed under the contract, categorized by trade or craft.
    (2) While the covered project is ongoing, the contractor shall 
include with each payment application to the recipient of assistance 
and Secretary a report containing the following information:
            (A) The names of all qualified apprentices and their 
        apprentice registration or identification number.
            (B) The number of qualified apprentices and labor hours 
        worked by them, categorized by trade or craft.
            (C) The number of journey level workers and labor hours 
        worked by them, categorized by trade or craft.
    (3) When a contractor is not subject to progress billing, the 
contractor shall submit the periodic reports required by paragraph (2) 
within a comparable time frame.
    (4) Within 60 days after concluding work on the contract, the 
contractor shall submit to the recipient of assistance and the 
Secretary a verified statement of the total journeyworker and 
apprentice hours performed on the project. The contractor and 
subcontractors shall maintain all personnel records relating to the 
reporting requirements of this subsection for a period of at least 3 
years after final completion of the work.
    (5) The information described in this subsection shall be public 
and shall not be exempt from disclosure under section 552(b) of title 
5, United States Code.
    (6) If the Secretary determines that any of the information 
required by this subsection contains false or misleading information 
that was provided knowingly or with reckless disregard for the truth, 
or omits information that was omitted knowingly or with reckless 
disregard of the truth, the contractor or subcontractor for which the 
information was submitted shall be prohibited from performing work on a 
covered project for a period of 5 years, and shall be further subject 
to penalties and sanctions, including contract termination.
    (7) Any misrepresentation or omission included in the reporting 
required by this subsection shall constitute a false record or 
statement material to a false or fraudulent claim for purposes of 
subchapter III of chapter 37 of title 31, United States Code.
    (f) Waiver.--(1) Upon request by a contractor or recipient of 
assistance, the Secretary may adjust the apprenticeship utilization 
requirement otherwise applicable to the contract for a specific covered 
project, when the contractor has provided documentary evidence of--
            (A) a demonstrated lack of availability of qualified 
        apprentices in the geographic area in which the contract will 
        be performed; and
            (B) a good-faith effort on the part of the contractor and 
        its subcontractors to comply with the apprenticeship 
        utilization requirement.
    (2) A waiver granted under this subsection and the rationale of the 
Secretary concerned for granting the waiver shall be public information 
and shall not be exempt from disclosure under section 552(b) of title 
5, United States Code.
    (g) Contracting.--The recipient of assistance shall cause to be 
inserted in a contract for a covered project stipulations to effectuate 
the requirements of this section. The stipulations shall provide that 
the contractor shall be jointly and severally liable for any violation 
of the requirements of this section that is committed by one of its 
subcontractors.
    (h) Definitions.--In this section:
            (1) The term ``contractor'' means a general contractor or 
        other lead or prime contractor on a covered project.
            (2) The term ``covered project'' means construction, 
        alteration, or repair work assisted in whole or in part under 
        sections 111, 131, or 202 of this Act.
            (3) The term ``labor hours'' means the total number of 
        hours devoted to the performance of construction activities (as 
        defined in Sector 23 of the North American Industry 
        Classification System) by employees of the contractor and its 
        subcontractors. The term excludes hours worked by foremen, 
        superintendents, owners, and persons employed in a bona fide 
        executive, administrative, or professional capacity as defined 
        in part 541 of title 29, Code of Federal Regulations.
            (4) The term ``qualified apprentice'' means an employee of 
        a contractor or subcontractor participating in an 
        apprenticeship program as that term is defined in section 
        3131(e)(3)(B) of the Internal Revenue Code of 1986.
            (5) The term ``Secretary'' means the Secretary of Energy.
            (6) The term ``subcontractor'' means any person or company, 
        at any tier, that performs some or all of the obligations of 
        the contractor on a covered project.
    (i) Preemption.--Nothing in this section shall preempt applicable 
State or local laws or policies that provide for additional skilled and 
trained workforce requirements on construction projects.

SEC. 503. REQUIREMENTS APPLICABLE TO TAX INCENTIVE PROGRAMS.

    (a) In General.--A taxpayer seeking a credit under sections 121, 
125, 204, 205, 206, 207, 302, and 307 of this Act, shall submit to the 
Secretary of the Treasury, along with the taxpayer's timely filed 
return, a declaration made under the penalties of perjury certifying 
compliance with the requirements under subsection (b).
    (b) Labor Standards.--The Secretary of the Treasury shall require a 
taxpayer, as a condition of receiving a credit under a program 
enumerated in subsection (a), to satisfy each of the following 
requirements during the taxable year for which such credit is claimed 
and any other period in which construction, alteration or repair work 
was performed for purposes of qualifying for a credit set forth in 
subsection (a):
            (1) Wages.--All laborers and mechanics employed by 
        contractors or subcontractors in the performance of 
        construction, alteration, or repair work on any qualified 
        facility, energy storage property, electricity generation 
        facility, advanced nuclear power facility, qualifying advanced 
        energy project, qualified offshore wind property, or other 
        projects contemplated by the credit programs enumerated in 
        subsection (a), shall be paid wages at rates not less than 
        those prevailing on projects of a similar character in the 
        locality as determined by the Secretary of Labor in accordance 
        with subchapter IV of chapter 31 of title 40, United States 
        Code. With respect to the labor standards in this paragraph, 
        the Secretary of Labor shall have the authority and functions 
        set forth in Reorganization Plan Numbered 14 of 1950 (64 Stat. 
        1267; 5 U.S.C. App.) and section 3145 of title 40, United 
        States Code.
            (2) Labor hours for qualified apprentices.--
                    (A) In general.--All contractors and subcontractors 
                engaged in the performance of construction, alteration, 
                or repair work on any project described in paragraph 
                (1) shall, subject to subparagraph (B), ensure that not 
                less than 15 percent of the total labor hours of such 
                work be performed by qualified apprentices.
                    (B) Apprentice-to-journeyworker ratio.--The 
                requirement under subparagraph (A) shall be subject to 
                any applicable requirements for apprentice-to-
                journeyworker ratios of the Department of Labor or the 
                applicable State apprenticeship agency.
                    (C) Participation.--Each contractor and 
                subcontractor who employs 4 or more individuals to 
                perform construction, alteration, or repair work on a 
                covered project shall employ 1 or more qualified 
                apprentices to perform such work.
                    (D) Reporting.--While the project is ongoing, the 
                contractor shall, with each payment application to the 
                taxpayer, include a report with the following:
                            (i) The names of all qualified apprentices 
                        and their apprentice registration or 
                        identification number.
                            (ii) The number of qualified apprentices 
                        and labor hours worked by them, categorized by 
                        trade or craft.
                            (iii) The number of journey level workers 
                        and labor hours worked by them, categorized by 
                        trade or craft.
                Such reports shall be included with the taxpayer's 
                declaration under subsection (a).
                    (E) Maintenance of records.--The taxpayer, its 
                contractor, and subcontractors, shall maintain all 
                reports and personnel records relating to the 
                requirements of subparagraph (D) for a period of at 
                least 3 years after final completion of the work.
                    (F) Submission of records.--The taxpayer, its 
                contractor, and subcontractors, shall immediately 
                submit, upon request by the Secretary of Energy, the 
                documents described in subparagraphs (D) and (E). 
                Failure to produce such documents shall result in 
                penalties.
                    (G) Waiver.--The Secretary of the Treasury may, 
                upon request by a taxpayer, adjust the requirements of 
                subsection (b)(2) for a specific project, when the 
                taxpayer has provided documentary evidence of the 
                following:
                            (i) A demonstrated lack of availability of 
                        qualified apprentices in specific geographic 
                        areas.
                            (ii) A good faith effort on the part of the 
                        taxpayer, its contractor and subcontractors to 
                        comply with the requirements of subsection 
                        (b)(2).
                Such waivers and the rationale of the Secretary of the 
                Treasury for granting such waivers shall be public and 
                shall not be exempt from disclosure under section 
                552(b) of Title 5, United States Code.
                    (H) Definitions.--For purposes of this subsection:
                            (i) Contractor.--The term ``contractor'' 
                        means a general contractor or other lead or 
                        prime contractor on a construction project 
                        described in subsection (b)(2).
                            (ii) Labor hours.--The term ``labor hours'' 
                        means the total number of hours devoted to the 
                        performance of construction activities (as 
                        defined in Sector 23 of the North American 
                        Industry Classification System) by employees of 
                        the contractor and all subcontractors. The term 
                        excludes hours worked by foremen, 
                        superintendents, owners, and persons employed 
                        in a bona fide executive, administrative, or 
                        professional capacity as defined in part 541 of 
                        title 29, Code of Federal Regulations.
                            (iii) Qualified apprentice.--The term 
                        ``qualified apprentice'' means an employee 
                        participating in an apprenticeship program (as 
                        such term is defined in section 3131(e)(3)(B) 
                        of the Internal Revenue Code of 1986).
                            (iv) Subcontractor.--The term 
                        ``subcontractor'' means any person or company, 
                        at any tier, that performs some or all of the 
                        obligations of the contractor on a construction 
                        project described in subsection (b)(2).
                    (I) Preemption.--Nothing in this subsection shall 
                preempt applicable State or local laws or policies that 
                provide for additional skilled and trained workforce 
                requirements on construction projects.
    (c) Enforcement.--
            (1) Investigations.--Upon receipt of a complaint or its own 
        initiative, the Secretary of Energy, in consultation with the 
        Secretary of Labor, shall request and review the weekly payroll 
        records of contractors and subcontractors engaged in the 
        performance of any construction, alteration, or repair work on 
        projects described in paragraphs (1) and (2) of subsection (b), 
        the reports set forth in subparagraphs (D) and (E) of 
        subsection (b)(2), and interview individuals employed by such 
        contractors and subcontractors, to determine whether the 
        requirements of paragraphs (1) and (2) of subsection (b) have 
        been met.
            (2) Penalties.--The taxpayer shall be responsible for 
        compliance by any contractor or lower tier subcontractor 
        performing any construction, alteration, or repair work on 
        projects described in paragraphs (1) and (2) of subsection (b). 
        If the Secretary of Energy determines, upon receipt of a 
        complaint or its own initiative, that a project was not carried 
        out in accordance with the requirements of this section, the 
        taxpayer shall be liable to the Department of the Treasury for 
        the following:
                    (A) For violations of subsection (b)(1), the 
                taxpayer shall be liable for any unpaid wages. In 
                addition, the taxpayer shall be liable to the 
                Department of the Treasury for an administrative 
                penalty in the amount of not less than $1,000 but not 
                more than $5,000 per each individual not paid the 
                proper prevailing rate.
                    (B) For violations of subsection (b)(2), the 
                taxpayer shall be liable to the Department of the 
                Treasury in the amount of not less than $1,000, but not 
                more than $5,000, for each hour of the apprenticeship 
                utilization requirement that is not achieved.
            (3) False statements.--If the Secretary of Energy, in 
        consultation with the Secretary of Labor, determines that any 
        of the information in a declaration under subsection (a) or 
        report under subsection (b)(2)(D) and (E), contains false or 
        misleading information that was provided knowingly or with 
        reckless disregard for the truth, or omits information that was 
        omitted knowingly or with reckless disregard of the truth, the 
        taxpayer shall no longer be eligible for any of the credits 
        enumerated in subsection (a), and shall be fined not less than 
        $5,000 but not more than $10,000.
            (4) Transparency.--Declarations under subsection (a) and 
        reports under subsection (b)(2)(D) and (E) shall be publicly 
        available and the information contained therein shall not be 
        exempt from disclosure under section 552(b) of title 5, United 
        States Code.
                                 <all>
Clean Energy Future Through Innovation Act of 2021
To advance clean power technology development and use through innovation and clean energy standards, and for other purposes.
Clean Energy Future Through Innovation Act of 2021
Rep. McKinley, David B.