Sec. 801. State Climate Plans
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The Clean Air Act ( 42 U.S.C. 7401 et seq.) is amended by adding after title VI the following new title: In this title: The term 2030 carbon dioxide standard means a standard which requires each State to achieve covered emissions of carbon dioxide within such State by January 1, 2031, at a level to be established by the Administrator in consideration of the emission reductions needed to achieve the national interim goal declared by section 101(1) of the CLEAN Future Act . The term 2040 carbon dioxide standard means a standard which requires each State to achieve covered emissions of carbon dioxide within such State by January 1, 2041, at a level to be established by the Administrator pursuant to section 705.
The term 2040 methane standard means a standard which requires each State to achieve covered emissions of methane within such State by January 1, 2041, at a level that is at least 95 percent below such State’s calendar year 2012 emissions of methane. The term carbon dioxide equivalent means, with respect to a greenhouse gas, the quantity of such gas that has a global warming potential equivalent to 1 metric ton of carbon dioxide, as determined pursuant to table A–1 of subpart A of part 98 of title 40, Code of Federal Regulations.
Subject to subparagraph (B), the term covered emissions means carbon dioxide and methane emitted by or attributed to sources in a State. The term covered emissions includes carbon dioxide and methane emissions that are biogenic emissions from agriculture and land-use practices only if such emissions consist of emissions from burning woody biomass to generate electricity either for sale to the grid or for onsite industrial use. The term electric generating unit means a steam generating unit, integrated gasification combined cycle, or stationary combustion turbine that meets the following conditions, as applicable:
Serves a generator or generators connected to a utility power distribution system with a nameplate capacity greater than 25 MW-net. Has a base load rating greater than 260 Gigajoules per hour (250 million British Thermal Units per hour) heat input of fossil fuel (either alone or in combination with any other fuel). Has stationary combustion turbines that are either a combined cycle or combined heat and power combustion turbine. The term greenhouse gas means each of the following:
Carbon dioxide. Methane. Nitrous oxide. Sulfur hexafluoride. Hydrofluorocarbons. Perfluorocarbons. Any other anthropogenic gas designated as a greenhouse gas by the Administrator or required to be reported under part 98 of title 40, Code of Federal Regulations. The term national climate standard means a standard which requires each State to achieve net-zero covered emissions measured in carbon dioxide equivalents within such State, after annual accounting for sources, negative emissions, and sinks of covered emissions consistent with the reporting of emissions required by this title by January 1, 2051.
The term negative emissions means greenhouse gases permanently removed from the atmosphere, other than biogenic removals through land-use and forestry practices. The term sink means a reservoir of greenhouse gases removed from the atmosphere through land-use and forestry practices. Not later than 2 years after the date of enactment of this title, each State shall submit to the Administrator, with respect to the preceding calendar year, a comprehensive, accurate inventory of— covered emissions, measured in metric tons of carbon dioxide equivalent, attributed to the combustion of fuels sold within such State during the respective calendar year; actual covered emissions not reported pursuant to paragraph
(1)from all sources emitting at least 25,000 metric tons of carbon dioxide equivalent during the respective calendar year located in such State; actual covered emissions not reported pursuant to paragraph
(1)or
(2)from electric generating units during the respective calendar year located in such State; sinks located in such State during the respective calendar year, measured in metric tons of carbon dioxide equivalent; negative emissions located in such State during the respective calendar year, measured in metric tons of carbon dioxide equivalent; and such other data on sources, negative emissions, and sinks of covered emissions that the Administrator determines necessary to facilitate the implementation of this title and the achievement and maintenance of the standards established under this title. The States may rely on data reported pursuant to part 98 of title 40, Code of Federal Regulations (or successor regulations), in developing an inventory under this section, as appropriate. The Administrator shall provide technical assistance to the States to aid in compliance with the requirements of this section. Not later than June 30 of the third calendar year after the date of enactment of this title, and by June 30 of each year thereafter, each State shall submit an updated inventory under this section to the Administrator for the preceding calendar year. The Administrator shall develop, in accordance with national inventory accounting guidelines under the United Nations Framework Convention on Climate Change, a methodology to quantify, in metric tons of carbon dioxide equivalent, the greenhouse gases removed from the atmosphere and sequestered in sinks in the States. For purposes of paragraph (1), the Administrator— shall, not later than 5 years after the date of enactment of this title, issue such methodology by proposed regulation; shall, not later than 2 years after issuing such proposed regulation, promulgate such methodology by final regulation; and may from time to time revise such methodology. Notwithstanding the deadlines in subsections
(a)and (d), the reporting requirement of subsection (a)(4) and subsection
(d)with respect to sinks shall not take effect until June 30 of the second calendar year following the promulgation of the final methodology required by paragraph (2)(B). The Administrator shall make grants to air pollution control agencies to assist with the reasonable costs of developing a State climate plan or plan revision pursuant to this title. To carry out this section, there is authorized to be appropriated $200,000,000. Each State shall adopt and submit to the Administrator a climate plan which— provides for achieving, by January 1, 2051, the national climate standard; provides for achieving the 2030 carbon dioxide standard; provides for achieving the 2040 carbon dioxide standard; and provides for achieving the 2040 methane standard. For purposes of this title— planning period 1 shall be through calendar year 2030; planning period 2 shall be for calendar years 2031 through 2040; and planning period 3 shall be for calendar years 2041 through 2050. Each State shall submit the plan required by subsection (a)— for planning period 1, not later than 3 years after the date of enactment of this title; for planning period 2, not later than December 31, 2028; and for planning period 3, not later than December 31, 2038. The Administrator shall— not later than 12 months after the date of enactment of this title, promulgate regulations to implement section 702 which may include revisions, as the Administrator determines appropriate, to part 98 of title 40, Code of Federal Regulations, to facilitate the reporting of all emissions relevant or necessary to implement this title; and not later than— 18 months after the date of enactment of this title, promulgate final regulations to carry out this title for planning period 1; January 1, 2027, revise such final regulations for planning period 2; and January 1, 2037, revise such final regulations for planning period 3. The regulations required by subsection (a)(2) shall include model control strategies established by the Administrator, after notice and opportunity for comment, that States may choose to adopt in climate plans under section 704, including— the climate pollution phaseout control program under subsection (c); a performance-based fuels standard under subsection (d); a carbon removal control strategy under subsection (e); energy efficiency control strategies under subsection (f); provisions to adopt and enforce, pursuant to section 177, California’s standards relating to control of emissions from new motor vehicles or new motor vehicle engines, including California’s zero-emissions vehicle regulations; and any other program which, in the judgment of the Administrator, will facilitate the expeditious progress of the States toward achieving the standards established under this title. The Administrator shall establish a model climate pollution phaseout control program that— is administered by the Administrator, with decisions on matters such as the limit on the aggregated quantity of covered emissions to be determined after the deadline to submit the plan for planning period 1; addresses covered emissions and covers, at a minimum, all sources that are— located in a State participating in the model program; and emitting 25,000 tons or more of carbon dioxide equivalent per year; determines the number of allowances available each calendar year, with each allowance authorizing the emission of 1 ton of carbon dioxide equivalent; sets a limit on the aggregated quantity of covered emissions from sources described in paragraph
(2)and reduces such limit annually in a manner consistent with facilitating achievement of the standards established under this title by the States participating in the model program; provides optional formulas that States participating in the model program may choose to use in allocating allowances within the respective State; and allows States and sources subject to the program which hold an allowance or offset credit to, without restriction, sell, exchange, transfer, hold for compliance, or request that the Administrator retire the allowance or credit. The Administrator shall establish a model performance-based fuels standard— that is based on the average lifecycle greenhouse gas emissions per unit of energy, of fuels sold or introduced into commerce, as determined by the Administrator after considering the aggregate quantity of greenhouse gas emissions (including direct emissions and significant indirect emissions, such as significant emissions from land-use changes) related to the full fuel life cycle, including all stages of fuel and feedstock production and distribution, from feedstock generation or extraction through the distribution and delivery to, and use of, the finished fuel by the ultimate consumer; that covers fuels including, at a minimum, transportation fuels; whose objective is to reduce the greenhouse gas emissions intensity of covered fuels to facilitate achieving the standards established under this title; that requires each fuel provider to demonstrate compliance with the standard; that provides for the generation of credits for fuels produced or imported that achieve lower greenhouse gas emissions intensity than is required by the performance-based fuel standard and allows for banking and trading such credits; and that determines the appropriate amount of credits and appropriate conditions, if any, on the timing of disbursement, duration, trading, and use of credits. The Administrator, in consultation with the Secretary of Agriculture and the Secretary of Energy, as appropriate, shall establish a model carbon removal control strategy to facilitate practices and activities that result in net-negative greenhouse gas emissions through natural and technological solutions. The model strategy under paragraph (1)— shall limit creditable projects to those that reduce, avoid, or sequester greenhouse gas emissions through practices proven to be effective; and may include— agricultural, grassland, and rangeland management; forestry and land use activities; manure management and disposal; wastewater and landfill management; direct air capture of greenhouse gas emissions and sequestration; and carbon dioxide capture and sequestration. To ensure the environmental integrity of the model program under paragraph (1), the Administrator shall include methodologies and protocols for, with respect to greenhouse gas reductions— quantification, including for aggregated projects; verification; reporting; record-keeping; audits; and mitigation of leakage. The model program under paragraph
(1)shall require that greenhouse gas reductions are additional and permanent. The Administrator, in consultation with the Secretary of Energy, shall establish model strategies for carbon dioxide mitigation using energy efficiency for participating States to facilitate demand-side energy management to reduce energy use from electricity and fuels used for space and water heating for industrial, commercial, and residential consumers, which may include— an energy efficiency resource standard; a demand response program, including time-based rates or other forms of financial incentives and direct load control programs; adoption and enforcement of energy- and water-savings model building codes; programs to promote energy efficient retrofits of existing buildings; incentives, rebates, and other financing options for adoption of cost-effective energy savings technologies, including ENERGY STAR products, with provisions to ensure that low-income communities can access these incentives, rebates, and other financing options; programs to promote cost-effective fuel-switching of residential and commercial building space heating and water heating loads; programs to support adoption and certification to ISO 50001 (or any successor standard) or a comparable energy management system; and practices to measure, verify, and report energy savings achieved. The requirements of the regulations under subsection (a)(2) that apply to planning period 1 shall continue to apply to subsequent planning periods, as applicable. The regulations under subsection (a)(2) for planning period 2 shall include— requirements for maintenance of the 2030 carbon dioxide standard; establishment of, and requirements and guidance relevant to, the 2040 carbon dioxide standard; and requirements and guidance relevant to the 2040 methane standard. In determining the 2040 carbon dioxide standard, the Administrator shall take into consideration— the best available science on the needed pace of reducing greenhouse gas emissions to limit global warming to 1.5° Celsius; the international commitments by the United States to address climate change, so as to ensure that such standard is, at a minimum, consistent with such commitments; the degree of progress considered necessary by calendar year 2040 to maximize the likelihood that there is an economically and technically feasible path forward from such date to achieve the national climate standard; and the projected emissions reductions from every State’s plan under this title and projected emissions reductions from all other enforceable domestic greenhouse gas reduction measures. The regulations under subsection (a)(2) for planning period 3 shall include— requirements for maintenance of the 2040 carbon dioxide standard and the 2040 methane standard; and such other provisions as the Administrator determines necessary for the achievement of the national climate standard. In exercising any requirement or authority in this title to act by regulation, the Administrator shall comply with the requirements of section 307(d). In order to facilitate submission by the States of adequate and approvable plans consistent with the applicable requirements of this title, the Administrator shall, as appropriate and from time to time, issue written guidelines, interpretations, and information to the States which shall be available to the public. Each climate plan or revision thereto submitted by a State under this title shall be adopted by the State after reasonable notice and public hearing. Each such climate plan shall— include enforceable emission limitations and other control measures, means, or techniques (including economic incentives such as fees, marketable permits, and auctions of emissions rights), as well as schedules and timetables for compliance, as may be necessary or appropriate to meet the applicable requirements of this title; provide for establishment and operation of appropriate devices, methods, systems, and procedures necessary to— monitor, compile, and analyze data on covered emissions, negative emissions, and sinks; and upon request, make such data available to the Administrator; include a program to provide for the enforcement of the emission limitations and other control measures, means, or techniques described in paragraph (1); provide necessary assurances that— the State (or, except where the Administrator determines inappropriate, the general purpose local government or governments, or a regional agency designated by the State or general purpose local government or governments)— will have adequate personnel, funding, and authority under State law to carry out such climate plan; and is not prohibited by any Federal or State law from carrying out such climate plan or any portion thereof; the State will apply the requirements of section 128 to any board or body that approves permits or enforcement orders under this title; and where the State relies on a local or regional government, agency, or instrumentality for the implementation of any plan provision, the State will be responsible for ensuring adequate implementation of such plan provision; require, as may be prescribed by the Administrator— the installation, maintenance, and replacement of equipment, and the implementation of other necessary steps, by owners or operators of stationary sources to monitor emissions from sources of covered emissions; periodic reports on the nature and amounts of emissions and emissions-related data from such sources; and correlation of such reports by the State with the standards established pursuant to this title, which reports shall be available on the internet for public inspection; provide for revision of such climate plan— from time to time as may be necessary to take account of revisions of the standards established under this title or the availability of improved or more expeditious methods of achieving such standards; and whenever the Administrator finds on the basis of information available to the Administrator that the climate plan is substantially inadequate to achieve any of the standards established under this title or to otherwise comply with any additional requirements established under this title; and provide for consultation and participation by local political subdivisions affected by the climate plan. A State climate plan under this title shall contain a just and equitable transition element that addresses how the State will— improve public health, resilience, and environmental outcomes, especially for rural communities, low-income communities, communities of color, indigenous communities, deindustrialized communities, and climate-impacted communities that are or are likely to be disproportionately affected by climate change or other pollution; and ensure fairness and equity for workers and communities affected by the implementation of this title. In this subsection— the terms community of color , indigenous community , and low-income community have the meaning given such terms in section 601 of the CLEAN Future Act ; and the term climate-impacted communities has the meaning given such term in section 1621 of the Energy Policy Act of 2005. A State climate plan under this title shall provide for the implementation of specific measures that— will apply if the State fails to timely achieve an applicable standard under this title; and will apply by operation of the plan without further action by the State or the Administrator. Not later than 18 months after the date of the enactment of this title, the Administrator shall promulgate minimum criteria that any State climate plan or plan revision submitted under this title must meet before the Administrator is required to act on such submission. The criteria shall be limited to the information necessary to enable the Administrator to determine whether the submission complies with this title. Not later than 60 days after the Administrator’s receipt of a State climate plan or plan revision under this title, the Administrator shall determine whether the minimum criteria promulgated pursuant to paragraph
(1)have been met. If the Administrator fails to determine whether a State climate plan or plan revision submitted under this title meets such minimum criteria by the date that is 6 months after receipt of the submission, such plan or plan revision is deemed to meet such minimum criteria. Where the Administrator determines under paragraph
(2)that a plan or plan revision (or part thereof) submitted under this title does not meet the minimum criteria promulgated pursuant to paragraph (1), the Administrator shall treat such plan or plan revision (or, in the Administrator’s discretion, part thereof) as having not been submitted. Not later than 12 months after a determination by the Administrator (or a determination deemed by operation of law) under subsection
(a)that a State has submitted a plan or plan revision (or, in the Administrator’s discretion, part thereof) that meets the minimum criteria promulgated pursuant to subsection (a), the Administrator shall act on the submission in accordance with subsection (c). In the case of any submission of a plan or plan revision on which the Administrator is required to act under subsection (b), the Administrator— shall approve such plan or plan revision as a whole if it meets all of the applicable requirements of this title; if a portion of the plan or plan revision meets all the applicable requirements of this title, may approve the plan or plan revision in part and disapprove the plan or plan revision in part; and shall not treat the plan revision as meeting the requirements of this title until the Administrator approves the entire plan revision as complying with the applicable requirements of this title. Whenever the Administrator finds that the applicable climate plan for any State is substantially inadequate to achieve any applicable standard established under this title or to maintain the national climate standard, or to otherwise comply with any requirement of this title, the Administrator shall require the State to revise the plan as necessary to correct all such inadequacies. The Administrator shall notify the State of such inadequacies, and may establish reasonable deadlines (not to exceed 12 months after the date of such notice) for the submission of such plan revisions. Such findings and notice shall be public. The Administrator shall not approve a revision of a climate plan if the revision would interfere with— any applicable requirement concerning achievement of a standard established under this title; or any other applicable requirement of this title. Whenever the Administrator determines that the approval or disapproval of any plan or plan revision (or part thereof) under this section was in error, the Administrator may in the same manner as the approval or disapproval, revise such action as appropriate without requiring any further submission from the State. Such determination and the basis thereof shall be provided to the State and public. Any plan revision that is required to be submitted in response to a finding by the Administrator pursuant to subsection
(d)shall correct the plan inadequacy (or inadequacies) specified by the Administrator and meet all other applicable plan requirements of this title. The Administrator may require a State to submit reports relating to emissions reductions, vehicle miles traveled, congestion levels, and any other information the Administrator determines necessary to assess the development, effectiveness, need for revision, or implementation of any plan or plan revision required under this title. Not later than 5 years after the date of enactment of this title, and every 3 years thereafter, the Administrator shall assemble and publish a comprehensive document for each State setting forth all requirements of the applicable climate plan for such State and shall publish notice in the Federal Register of the availability of each such document. If an Indian tribe submits a climate plan under this title to the Administrator pursuant to section 301(d), the Administrator shall review the plan in accordance with the provisions of this section for review of a State plan, except as otherwise provided by a regulation consistent with the requirements of this title promulgated pursuant to section 301(d)(2). When such plan becomes effective in accordance with the regulations promulgated under section 301(d), the plan shall become applicable to all areas (except as expressly provided otherwise in the plan) located within the exterior boundaries of the reservation, notwithstanding the issuance of any patent and including rights-of-way running through the reservation. Subsections
(c)and
(d)of section 176 shall apply with respect to a climate plan under section 704 to the same extent and in the same manner as such subsections apply with respect to an implementation plan under section 110. In applying subsection
(a)of this section, references in subsection
(c)or
(d)of section 176 to national ambient air quality standards shall be treated as references to the standards established under this title. Two or more States may jointly submit climate plans or components thereof to achieve the standards established under this title— for all of the submitting States; or for specific economic sectors in the submitting States. The Administrator shall treat States that submit climate plans or components jointly pursuant to subsection
(a)as a single jurisdiction when— evaluating the adequacy of the joint plan or component under this title; and determining under section 711 whether the States have achieved the applicable standards established under this title. Each State that submits to the Administrator a request for designation as having achieved the national climate standard shall submit a revision to the State climate plan for maintaining the national climate standard for at least 10 years after such designation. Not later than 8 years after the Administrator designates a State as achieving the national climate standard, the State shall submit to the Administrator an additional revision to the State climate plan for maintaining the national climate standard for 10 years after the expiration of the 10-year period referred to in subsection (a). Each plan revision submitted under this section shall include in the revision such additional measures, if any, as may be necessary to ensure maintenance of the national climate standard. Each plan revision submitted under this section shall— contain such contingency provisions as the Administrator determines necessary to ensure that the State will promptly correct any violation of the national climate standard which occurs after the designation under section 711 of the State as achieving such standard; and include in such contingency provisions a requirement that the State will implement all measures with respect to the control of covered emissions which were contained in the State climate plan before such designation. As expeditiously as practicable after any date by which a State is required to achieve a standard established under this title, but not later than 12 months after such date, the Administrator shall determine whether each State achieved the applicable standard by that date. The Administrator may revise or supplement a determination under paragraph
(1)at any time based on more complete information or analysis concerning the State’s inventory under section 702. The Administrator may, upon request by a State, designate the State as having achieved a standard established under this title, if— the Administrator determines under subsection
(a)that the State has achieved the applicable standard; the Administrator has fully approved the climate plan required by this title for the State; the Administrator determines that reduction in covered emissions is due to permanent and enforceable reductions in emissions resulting from implementation of the climate plan and applicable Federal laws or regulations and other permanent and enforceable reductions; if applicable, the Administrator has fully approved under section 710 a revision by the State to a climate plan for maintaining the national climate standard; and the State has met all requirements applicable under this title. The Administrator shall promulgate regulations setting forth the manner by which the Administrator will determine under subsection
(a)whether a State has achieved a standard established under this title. Such regulations shall provide that the Administrator shall account for offsets possessed and submitted by a State for purposes of demonstrating achievement of the national climate standard. In determining whether a State has achieved the national climate standard, the Administrator shall account for negative emissions and sinks. Not later than 30 days after making a determination under section 711 that a State has failed to timely achieve a standard established under this title, the Administrator shall publish a notice in the Federal Register containing such determination. A State shall submit a revision to its climate plan in accordance with this section not later than 1 year after— the Administrator publishes a notice under section 712 of a determination that such State has failed to timely achieve a standard established under this title; or such State submits an inventory under section 702 demonstrating that it has failed to timely achieve a standard established under this title, irrespective of whether the Administrator has published a notice of such failure under section 712. If a State fails to timely achieve the 2030 carbon dioxide standard as described in subsection (a), the State shall submit a plan revision to its State climate plan that— provides for achieving the 2030 carbon dioxide standard; provides for, from the date of such submission until achieving the 2030 carbon dioxide standard, an annual reduction in covered emissions within the State of not less than 5 percent of the amount of such emissions as reported in the calendar year 2030 inventory submitted by the State; and ensures that the revised plan requires that— a permit must be obtained for the construction and operation of any new or modified source of covered emissions in the State that emits 25,000 tons or more per year of carbon dioxide equivalent; the owner or operator of— such a modified source must offset its increased covered emissions attributable to such each such modification by obtaining emissions reductions from the same source or other sources in the same State on a 2-to-1 ratio of emissions reductions to increased covered emissions by tonnage; and such a new source must offset its covered emissions by obtaining emissions reductions from the same source or other sources in the same State on a 2-to-1 ratio of emissions reductions to covered emissions by tonnage; such covered emissions reductions must be, by the time a new or modified source described in clause
(i)commences operation, in effect and enforceable; emissions reductions required under any Federal or State law other than this title are not creditable as emissions reductions for purposes of the offset requirement under this paragraph; and any emissions reductions required pursuant to this paragraph as a precondition of the issuance of a permit are federally enforceable before such permit may be issued. The requirements of this subsection cease to apply with respect to a State described in paragraph
(1)once such State has— achieved the 2030 carbon dioxide standard and received a designation of such achievement under section 711; and obtained the Administrator’s approval of a climate plan for the State for planning period 2, including a satisfactory demonstration that the plan will result in achieving the 2040 carbon dioxide standard. If a State fails to timely achieve the 2040 carbon dioxide standard as described in subsection (a), the State shall submit a plan revision for the applicable State climate plan that— provides for achievement of the 2040 carbon dioxide standard; provides for, from the date of such submission until achievement of the 2040 carbon dioxide standard, an annual reduction in covered emissions within the State of not less than 10 percent of the amount of such emissions as reported in the calendar year 2040 inventory submitted by the State; and ensures that the revised plan includes each requirement listed in subsection (b)(1)(C), except that the reference to any 2-to-1 ratio in such subsection shall be treated as a reference to a 3-to-1 ratio for purposes of this subsection. The requirements of this subsection cease to apply with respect to a State described in paragraph
(1)once such State has— achieved the 2040 carbon dioxide standard and received a designation of such achievement under section 711; and obtained the Administrator’s approval of the climate plan for the State for planning period 3, including a satisfactory demonstration that the plan will result in achieving the national climate standard. If a State fails to timely achieve the 2040 methane standard as described in subsection (a), the State shall submit a plan revision for the applicable State climate plan that— provides for achievement of the 2040 methane standard; and provides for, from the date of such submission until achievement of the 2040 methane standard, an annual reduction in covered emissions of methane within the State of not less than 5 percent of the amount of such emissions as reported in the calendar year 2040 inventory submitted by the State. The requirements of this subsection cease to apply with respect to a State described in paragraph
(1)once such State has— achieved the 2040 methane standard and received a designation of such achievement under section 711; and obtained the Administrator’s approval of the climate plan for the State for planning period 3, including a satisfactory demonstration that the plan will result in achieving the national climate standard. If a State fails to timely achieve the national climate standard as described in subsection (a), the State shall submit a plan revision for the applicable State climate plan that— provides for achievement of the national climate standard; and provides for, from the date of such submission until achievement of the national climate standard, an annual reduction in covered emissions within the State of not less than 10 percent of the amount of such emissions as reported in the calendar year 2050 inventory submitted by the State. A plan revision required by this section shall include such additional measures as the Administrator may reasonably by regulation prescribe, including measures that can be feasibly implemented in the State in light of technological achievability, costs, and any non-air quality and other air quality-related health and environmental impacts. Not later than 12 months after the date of enactment of this title, the Administrator shall establish a grant program to be known as the Race to Net-Zero Grant Program. Sources that paid a carbon fee under section 715 for the current or preceding fiscal year may apply for and receive funds under the grant program established under subsection
(a)in order to facilitate the achievement of the standards under this title through the reduction of covered emissions, through the following activities: Any project that the Administrator determines will directly reduce covered emissions at the source receiving the grant, including any such project for improving energy efficiency. Implementation of the practices and activities included in the carbon removal model control strategy under section 705(e). Implementation of zero-emissions transportation technology development and deployment strategies, including deployment of— zero-emission vehicles, including light-, medium-, and heavy-duty vehicles; and distribution and delivery infrastructure to support zero-emissions vehicle charging and refueling, including improvements to electrical grid infrastructure. Electrification of residential and commercial energy uses that results in the reduced demand for natural gas, heating oil, gasoline, diesel fuel, or propane. Emissions reductions from industrial sources. Reduction, capture, and use of landfill gas. A source that receives funds under this section shall maintain such records on the use of such funds, including evidence of compliance with the provisions of this section, as the Administrator may require. The Administrator may issue such guidelines and criteria for the grant program under this section as the Administrator determines to be appropriate. Notwithstanding any other provision of law and in a manner consistent with other provisions in this section, to receive funding under this section, a source shall provide reasonable assurances that 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 section, will 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 subsection, the Secretary of Labor shall have the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 of title 40, United States Code. A carbon fee under this section shall only be assessed and collected with respect to covered emissions in— a State that does not submit a climate plan or plan revision required under this title by the applicable deadline; and a State for which the Administrator disapproves, in whole or in part, the climate plan or any plan revision required under this title. A carbon fee under this section shall be assessed and collected— with respect to a State described in paragraph (1)(A), beginning 180 days after the applicable deadline described in such paragraph; and with respect to a State described in paragraph (1)(B), beginning 180 days after publication of the notice of disapproval. Subject to subsection (a), the Administrator shall annually assess and collect a carbon fee from— each terminal used for bulk storage of, and each distributor of, fuels that are described in section 702(a)(1), as determined by the Administrator, based on the amount of covered emissions attributable to the combustion of such fuels sold or transferred by the terminal or distributor for delivery in each State in which the fee is being assessed; and each source of covered emissions that is described in paragraph
(2)or
(3)of section 702(a) based on the amount of covered emissions attributable to such source in the inventory submitted pursuant to section 702 by a State in which the fee is being assessed. Not later than 90 days after a triggering event described in subsection (a)(1) occurs with respect to a State, the Administrator shall set the amount of a carbon fee to be collected under subsection (b). Such amount shall be equal to— the number of metric tons of covered emissions, measured in carbon dioxide equivalent that are attributable, as described in subsection (b), to the terminal used for bulk storage of fuels, distributor of fuels, or source of covered emissions; multiplied by a dollar amount which modeling predicts with a high degree of confidence will reduce covered emissions in the State so as to put the State on a trajectory to timely achieve the standards established under this title. The Administrator shall— ensure a carbon fee under this section is not assessed and collected with respect to any nonemitting use within the State in which the fee is being assessed; and provide for the refund of any carbon fee paid under this section with respect to a nonemitting use within the State in which the fee is being assessed. All carbon fees collected under this section shall be available for, and used solely to fund, the program under section 714, without further appropriation and without fiscal year limitation. Nothing in this title affects the authorities and obligations of the Administrator and the States under other titles of this Act to reduce greenhouse gas emissions that contribute to air pollution which may reasonably be anticipated to endanger public health or welfare in the United States or other nations. .
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- 64 Stat. 1267
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