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Title II — Distribution of Revenues From Taxation of Greenhouse Gas Emissions

H.R. 4520 · 116th Congress · Sep 26, 2019 · Lineage

II Distribution of Revenues From Taxation of Greenhouse Gas Emissions

A Rebuilding Infrastructure and Solutions for the Environment Trust Fund

Sec. 201 Establishment of the rise trust fund

There is hereby created in the Treasury of the United States a trust fund to be known as the “Rebuilding Infrastructure and Solutions for the Environment Trust Fund” (hereafter in this Act referred to as the “RISE Trust Fund”), consisting of amounts paid into the Treasury pursuant to subtitle L of the Internal Revenue Code of 1986 (as added by title I of this Act), and 75 percent of such amounts are hereby appropriated and transferred to the RISE Trust Fund.

Sec. 202 Appropriations from the rise trust fund

(a)
In general— Amounts in the RISE Trust Fund for a fiscal year shall be available, as provided by appropriation Acts, as follows:
(1)
70 percent for each of the fiscal years 2021 through 2030 to the Highway Trust Fund.
(2)
1.5 percent for each of the fiscal years 2021 through 2030 for the weatherization program developed under part A of title IV of the Energy Conservation and Production Act (42 U.S.C. 6861 et seq.).
(3)
3 percent for each of the fiscal years 2021 through 2030 for assistance for displaced energy workers under section 321.
(4)
2.5 percent for each of the fiscal years 2021 through 2030 to the Airport and Airway Trust Fund under section 9502 of the Internal Revenue Code of 1986.
(5)
0.1 percent for each of the fiscal years 2021 through 2030 to the Leaking Underground Storage Trust Fund under section 9508 of the Internal Revenue Code of 1986.
(6)
1.5 percent for each of the fiscal years 2021 through 2030 to the Abandoned Mine Reclamation Fund under section 401 of the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1231).
(7)
4 percent for each of the fiscal years 2021 through 2030 for frequent and chronic coastal flooding mitigation and adaptation infrastructure projects under section 302.
(8)
1.5 percent for each of the fiscal years 2021 through 2030 for Advanced Research Projects Agency-Energy under section 5012 of the America COMPETES Act (42 U.S.C. 16538).
(9)
0.7 percent for each of the fiscal years 2021 through 2030 for the Carbon Capture Research and Development Program of the National Energy Technology Laboratory, Office of Fossil Energy, Department of Energy.
(10)
0.5 percent for each of the fiscal years 2021 through 2030 for assistance for Carbon Storage DOE Fossil Energy Research, Development, and Demonstration Program Areas, Coal Program Area (Carbon Storage).
(11)
0.5 percent for each of the fiscal years 2021 through 2030 for assistance to the National Energy Technology Laboratory of the Office of Fossil Energy for the research and development of carbon removal technologies.
(12)
0.3 percent for each of the fiscal years 2021 through 2030 to the Secretary of Energy for research and development to identify and assess novel uses for carbon oxides, including the conversion of carbon dioxide for commercial and industrial products, such as chemicals, plastics, building materials, fuels, cement, products of coal use in power systems or other applications, or other products with demonstrated market value.
(13)
0.2 percent for each of the fiscal years 2021 through 2030 to the Secretary of Energy to provide grants to entities constructing common carrier pipeline infrastructure to transport anthropogenic carbon dioxide for the incremental cost of providing extra capacity for future carbon dioxide transport needs.
(14)
0.5 percent for each of the fiscal years 2021 through 2030 for research and development relating to energy storage by battery through the Office of Electricity, Department of Energy.
(15)
10 percent for each of the fiscal years 2021 through 2030 for State grants under section 203.
(16)
1 percent for each of the fiscal years 2021 through 2030 to the Reforestation Trust Fund (16 U.S.C. 1606a).
(17)
0.1 percent for each of the fiscal years 2021 through 2030 for assistance through cooperative agreements to decrease the environmental impact of energy-related activities pursuant to section 931 of the Energy Policy Act of 2005 (42 U.S.C. 16231).
(18)
1.6 percent for each of the fiscal years 2021 through 2030 for the environmental quality incentives program under chapter 4 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3839aa et seq.) for payments to producers to implement practices that promote improvements identified in subparagraphs (A) and (C) of section 1240B(d)(3) of such Act (16 U.S.C. 3839aa–2).
(19)
0.5 percent for each of fiscal years 2021 through 2030 for the regional conservation partnership program under section 1271 of the Food Security Act of 1985 (16 U.S.C. 3871) for eligible activities on eligible land through partnership agreements with eligible partners and contracts with producers that address one of the following goals:
(A)
Soil health.
(B)
Nutrient management.
(C)
Forest restoration.
(D)
Reduction of methane emissions.
(E)
Other related activities that the Secretary determines will help achieve conservation benefits and increase carbon sequestration or reduce greenhouse gas emissions.
(b)
Carbon removal— For purposes of subsection (a)(11), the term carbon removal technologies includes:

“(1) Direct air capture and storage technologies, which shall not include any equipment which captures carbon dioxide which is deliberately released from naturally occurring subsurface springs or using natural photosynthesis.

“(2) Bioenergy with carbon capture and sequestration.

“(3) Enhanced geological weathering.

“(4) Agricultural and grazing practices.

“(5) Forest management and afforestation.

“(6) Planned or managed carbon sinks, including natural and artificial.”

(c)
Wage rate requirements— Notwithstanding any other provision of law and in a manner consistent with other provisions in this Act, all laborers and mechanics employed by contractors and subcontractors on projects 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.
(d)
Conforming amendments—
(1)
Leaking underground storage tank trust fund— Section 9508(b) of the Internal Revenue Code of 1986 is amended—
(A)
by striking “and” at the end of paragraph (3);
(B)
by striking the period at the end of paragraph (4) and inserting “, and”; and
(C)
by inserting after paragraph (4) the following:

“(5) amounts made available to the Leaking Underground Storage Tank Trust Fund from the RISE Trust Fund under section 202(a)(5) of the Modernizing America with Rebuilding to Kickstart the Economy of the Twenty-first Century with a Historic Infrastructure-Centered Expansion Act.”

(2)
Reforestation trust fund—
(A)
Source of funds— Section 303(a) of the Act of October 14, 1980 (16 U.S.C. 1606a(a)) is amended by striking “subsection (b)(1)” and inserting “paragraph (1) or (4) of subsection (b)”.
(B)
Special rule relating to limitation— Section 303(b) of the Act of October 14, 1980 (16 U.S.C. 1606a(b)) is amended—
(i)
in paragraph (2) by inserting “under paragraph (1)” after “transfer”, and
(ii)
by adding at the end the following:

“(4) Not later than 9 months after the enactment of the Modernizing America with Rebuilding to Kickstart the Economy of the Twenty-first Century with a Historic Infrastructure-Centered Expansion Act, the Secretary shall transfer to the Trust Fund the amounts made available under section 202(a)(13) of such Act.”

Sec. 203 State grants

(a)
In general— From amounts made available under section 202(a)(15), the Secretary of the Treasury shall make a annual grant to each State (hereafter in this section referred to as “State grant”) to distribute to eligible low-income households in accordance with this section.
(b)
Eligible low-Income household— A household shall be considered to be an eligible low-income household for purposes of this section if—
(1)
except as provided in subsection (d)(4), the gross income of the household does not exceed 150 percent of the poverty line;
(2)
the appropriate State agency for the State in which the household is located determines that the household is participating in—
(A)
the Supplemental Nutrition Assistance Program authorized by the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.);
(B)
the Food Distribution Program on Indian Reservations authorized by section 4(b) of such Act (7 U.S.C. 2013(b)); or
(C)
the program for nutrition assistance in Puerto Rico or American Samoa under section 19 of such Act (7 U.S.C. 2028);
(3)
the household consists of a single individual or a married couple, and—
(A)
receives the subsidy described in section 1860D–14 of the Social Security Act (42 U.S.C. 1395w–114); or
(B)
(i)
participates in the program under title XVIII of the Social Security Act; and
(ii)
meets the income requirements described in section 1860D–14(a)(1) or (a)(2) of the Social Security Act (42 U.S.C. 1395w–114(a)(1) or (a)(2)); or
(4)
the household consists of a single individual or a married couple, and receives benefits under the supplemental security income program under title XVI of the Social Security Act (42 U.S.C. 1381–1383f).
(c)
Amount— The Secretary of the Treasury, in consultation with the Secretary of Energy and the Administrator of the Environmental Protection Agency, shall determine the amount of each State grant in proportion to the percentage of total United States greenhouse gas emissions attributable to electricity, natural gas, gasoline, diesel, and fuel ethanol sold in such State during the preceding calendar year.
(d)
Rule relating to process— Not later than 1 year after the enactment of this Act, the Secretary of the Treasury shall establish by rule a date in each year by which each State shall notify the Secretary how the State intends to distribute the State Grant. The Secretary shall transfer the State Grant to each State only upon the State demonstrating to the Secretary’s satisfaction that the State intends to distribute the State Grant in accordance with this section.
(e)
State— For the purposes of this section, the term State includes the District of Columbia and any territory of possession of the United States.

B Certain Manufacturers Excise Taxes

Sec. 211 Repeal of Federal motor vehicle and aviation fuel taxes

(a)
In general— Subpart A of part III of subchapter A of chapter 32 of the Internal Revenue Code of 1986 is hereby repealed.
(b)
Effective date— The repeal made by subsection (a) shall apply to transactions after December 31, 2019.

Sec. 212 Amendments to certain tax credits for carbon capture and storage

(a)
In general— Section 45Q of the Internal Revenue Code (26 U.S.C. 45Q) is amended in subsection (d)(1), by striking “2024” and inserting “2026”.
(b)
Effective date— The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

Sec. 213 Modifications of qualifying advanced coal project credit

(a)
Sequestration requirement for certain equipment— Section 48A(e)(1)(G) of the Internal Revenue Code of 1986 is amended by inserting “and 60 percent in the case of an application for a reallocation of credits under subsection (d)(4) with respect to an electrical generating unit in existence on October 3, 2008” after “under subsection (d)(4)”.
(b)
Nameplate generating capacity requirement— Section 48A(e)(1)(C) of such Code is amended by striking “400 megawatts” and inserting “200 megawatts”.
(c)
Advanced coal-Based generation technology requirements—
(1)
In general— Section 48A(f)(1) of such Code is amended by striking “generation technology if—” and all that follows through “the unit is designed” and inserting “generation technology if the unit is designed”.
(2)
Conforming amendments— Section 48A(f) is amended—
(A)
by striking all that precedes “the purpose of this section” and inserting the following:

“(f) Advanced coal-Based generation technology—For”

(B)
by striking “in subparagraph (B)” in the second sentence and inserting “in this subsection”; and
(C)
by striking paragraphs (2) and (3).
(d)
Performance requirements in case of best available control technology— Section 48A(f) of such Code, as amended by this Act, is amended by adding at the end the following: “In the case of a retrofit of a unit which has undergone a best available control technology analysis after August 8, 2005, with respect to the removal or emissions of any pollutant which is SO2 or NOx, the removal or emissions design level with respect to such pollutant shall be the level determined in such analysis.”.
(e)
Clarification of reallocation authority— Section 48A(d)(4) of the Internal Revenue Code of 1986 is amended—
(1)
in subparagraph (A)—
(A)
by striking “Not later than 6 years after the date of enactment of this section, the” and inserting “The”; and
(B)
by inserting “and every 6 months thereafter until all credits available under this section have been allowed” after “the date which is 6 years after the date of enactment of this section”;
(2)
in subparagraph (B)—
(A)
by striking “may reallocate credits available under clauses (i) and (ii) of paragraph (3)(B)” and inserting “shall reallocate credits remaining available under paragraph (3)”;
(B)
by striking “or” at the end of clause (i); and
(C)
by striking clause (ii) and inserting the following:

“(ii) any applicant for certification which submitted an accepted application has subsequently failed to satisfy the requirements under paragraph (2)(D), or

“(iii) any certification made pursuant to paragraph (2) has been revoked pursuant to paragraph (2)(E).”

(3)
in subparagraph (C)—
(A)
by striking “clause (i) or (ii) of paragraph (3)(B)” and inserting “paragraph (3)”;
(B)
by striking “is authorized to” and inserting “shall”; and
(C)
by striking “an additional program” and inserting “additional programs”.
(f)
Effective date—
(1)
In general— Except as provided in paragraph (2), the amendments made by this section shall apply to allocations and reallocations after the date of the enactment of this Act.
(2)
Reallocation— The amendments made by subsection (e) shall apply to credits remaining available under section 48A(d)(3) of the Internal Revenue Code of 1986 on the date of the enactment of this Act.