Sec. 205. Carbon Mitigation Fund
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/bill/117/hr/4309/ih/section-205·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
There is hereby established a trust fund, to be known as the Carbon Mitigation Fund , consisting of such amounts as may be appropriated to such fund as provided in this section. The Carbon Mitigation Fund shall be administered by the Administrator. There are hereby appropriated to the Carbon Mitigation Fund each year amounts equal to the sum of the amounts that are— attributable to alternative compliance payments made pursuant to section 202; equal to the alternative compliance payments that would have been made by any petitioners under section 202 but for a determination of inadequate availability of technology made by the Administrator under section 202(d); and collected as a civil penalty under section 209.
Amounts in the Carbon Mitigation Fund shall be available without further appropriation or fiscal year limitation to carry out the program under subsection (b). The Administrator shall carry out a program to award funds to entities to carry out activities in States that avoid emissions of greenhouse gases or remove carbon dioxide from the atmosphere. Activities for which the Administrator may award funds under the program carried out pursuant to this subsection include— improvements to the energy efficiency of existing facilities and devices; improvements to the electrical grid; the replacement of natural gas space heaters, natural gas water heaters, and natural gas stoves, with electric appliances; the replacement of fossil fuel-powered vehicles owned by State and local agencies with electric vehicles or other low-carbon fuel vehicles; the replacement of fossil fuel-powered ground airport and seaport vehicles with electric vehicles or other low-carbon fuel vehicles; installation of fast charging stations for electric vehicles along highways and other public roads in urban areas and rural areas; beneficial electrification-related reductions not otherwise identified in this paragraph; activities that capture carbon dioxide from the atmosphere and safely and permanently store or utilize such carbon dioxide in accordance with section 204(e)(6); and any activity that is endorsed by a generator or a retail electricity supplier that results in a net reduction of emissions of greenhouse gases.
The Administrator may not award funds to an entity under the program carried out pursuant to this subsection for any activity for which the entity— has been issued a zero-emission electricity credit; or received a deduction of megawatt-hours under section 202(a)(3)(B) to account for beneficial electrification-related reductions. The Administrator may only award funds under the program carried out pursuant to this subsection for an activity for which the Administrator determines that— the amount of carbon dioxide emissions avoided or removed from the atmosphere by the activity will be adequately confirmed through monitoring, reporting, and verification; the risk that some amount of the carbon dioxide that is removed from the atmosphere by the activity may reenter the atmosphere at a later date is adequately reflected through a discounting of the amount described in paragraph (5)(C)(ii); the risk that some amount of the greenhouse gases, the emission of which is avoided by the activity, may enter the atmosphere at a later date is adequately reflected through a discounting of the amount described in paragraph (5)(C)(i); the risk that the activity may directly or indirectly increase the release of greenhouse gases from another location has been adequately addressed; the activity is not required, or being fully supported financially by, a Federal, State, or local law, program, or activity; and if the activity involves land use, the activity— aligns with the Sustainable Development Goals of the United Nations, including being consistent with the conservation of biological diversity and natural ecosystems (including forests and grasslands); and maintains ecosystem services and other social and environmental benefits.
In order to qualify for an award of funds under this subsection, an entity shall submit to the Administrator a proposal that— describes the activity to be carried out with the award of funds; identifies the amount of money for which the entity is applying; identifies the amount, to be measured in one-year increments, of— greenhouse gas emissions to be avoided by the activity, measured in terms of carbon dioxide equivalent; and carbon dioxide to be removed from the atmosphere by the activity, measured in metric tons; identifies the bid amount, expressed as dollars per metric ton, which shall be the quotient obtained by dividing the amount identified under subparagraph
(B)by the total amount identified under subparagraph (C); provides any information required by the Administrator in order to make a determination described in paragraph (4); and provides any other certifications the Administrator determines appropriate. Not later than January 1, 2024, the Administrator shall promulgate regulations to implement this section, including specifying the information required to be included in proposals under paragraph (5). Not later than February 1, 2024, and each February 1 thereafter, the Administrator shall solicit proposals for activities described in paragraph
(1)for which the Administrator may award funds under the program carried out pursuant to this subsection. Not later than June 1, 2024, and each June 1 thereafter, the Administrator shall identify proposals that have been submitted by March 1 of such calendar year for activities described in paragraph
(1)that qualify for an award of funds under the program carried out pursuant to this subsection. Not later than August 1, 2024, and each August 1 thereafter, the Administrator shall award to entities funds available in the Carbon Mitigation Fund established by subsection
(a)for activities described in proposals identified under subparagraph (C). The Administrator shall award funds to entities for activities described in proposals identified under paragraph (6)(C)— beginning by awarding funds to the entity submitting such a proposal with the lowest bid amount identified pursuant to paragraph (5)(D); and then awarding funds to entities sequentially by entity submitting such a proposal with the next lowest bid amount so identified until all funds are awarded. The Administrator shall consult with the Secretary of the Interior and the Secretary of Agriculture in promulgating regulations to measure, monitor, and verify any natural sequestration activities awarded under this section.