119-s2712

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2712 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 2712

To amend the Internal Revenue Code of 1986 to establish a carbon fee to 
 reduce greenhouse gas emissions, and for other purposes.

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 September 4, 2025

 Mr. Durbin introduced the following bill; which was read twice and 
 referred to the Committee on Finance

_______________________________________________________________________

 A BILL

To amend the Internal Revenue Code of 1986 to establish a carbon fee to 
 reduce greenhouse gas emissions, 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 ``America's Clean Future Fund Act''.

SEC. 2. CLIMATE CHANGE FINANCE CORPORATION.

    (a) Establishment.--

    (1) In general.--There is established in the executive 
 branch an independent agency, to be known as the ``Climate 
 Change Finance Corporation'' (referred to in this section as 
 the ``C2FC''), which shall finance clean energy and climate 
 change resiliency activities in accordance with this section.

    (2) Mission.--The mission of the C2FC is to combat climate 
 change by reducing the dependency of the United States on 
 fossil fuels, reducing greenhouse gas emissions, and building 
 resilience to the harmful impacts of climate change.

    (3) Activities.--
        (A) In general.--The C2FC shall reduce the reliance 
 of the United States on fossil fuels and mitigate the 
 impacts of climate change by financing--
            (i) the deployment of low- and zero-
 emissions energy technologies and fuels;
            (ii) the construction of climate-resilient 
 infrastructure;
            (iii) research, development, and 
 commercialization of new climate-smart 
 technologies and tools to facilitate industrial 
 decarbonization;
            (iv) clean energy and climate projects 
 identified as too high-risk for private capital 
 investment; and
            (v) projects that encourage the infusion of 
 private capital and the creation of new 
 workforce opportunities in clean 
 transportation, energy, and climate resiliency.
        (B) Priority.--In carrying out activities under 
 subparagraph
        (A) , the C2FC shall give priority to 
 projects that benefit--
            (i) communities disproportionately facing 
 the harmful impacts of climate change;
            (ii) communities that have been 
 historically overburdened by industrial 
 pollution from carbon-intensive industries; and
            (iii) communities that have historically 
 relied on carbon-intensive industries for 
 economic support.
            (C) Emissions reduction goals.--In carrying out 
 activities under subparagraph
        (A) , the goals of the 
 C2FC shall be to achieve--
            (i) by 2030, a net reduction of greenhouse 
 gas emissions by 45 percent, based on 2018 
 levels; and
            (ii) by 2050, a net reduction of greenhouse 
 gas emissions by 100 percent, based on 2018 
 levels.

    (4) Exercise of powers.--Except as otherwise provided 
 expressly by law, all Federal laws dealing with public or 
 Federal contracts, property, works, officers, employees, 
 budgets, or funds, including the provisions of chapters 5 and 7 
 of title 5, United States Code, shall apply to the exercise of 
 the powers of the C2FC.

    (b) Board of Directors.--

    (1) In general.--The management of the C2FC shall be vested 
 in a Board of Directors (referred to in this section as the 
 ``Board'') consisting of 7 members, who shall be appointed by 
 the President, by and with the advice and consent of the 
 Senate.

    (2) Chairperson and vice chairperson.--
        (A) In general.--A Chairperson and Vice Chairperson 
 of the Board shall be appointed by the President, by 
 and with the advice and consent of the Senate, from 
 among the individuals appointed to the Board under 
 paragraph

    (1) .
        (B) Term.--An individual--
            (i) shall serve as Chairperson or Vice 
 Chairperson of the Board for a 3-year term; and
            (ii) may be renominated for the position 
 until the term of that individual on the Board 
 under paragraph

    (3)
            (C) expires.

    (3) Board members.--
        (A) Citizenship required.--Each member of the Board 
 shall be an individual who is a citizen of the United 
 States.
        (B) Representation.--The members of the Board shall 
 represent agricultural, educational, research, 
 industrial, nongovernmental, labor, environmental 
 justice, and commercial interests throughout the United 
 States.
            (C) Term.--
            (i) In general.--Except as otherwise 
 provided in this section, each member of the 
 Board--
            (I) shall be appointed for a term 
 of 6 years; and
            (II) may be reappointed for 1 
 additional term.
            (ii) Initial staggered terms.--Of the 
 members first appointed to the Board--
            (I) 2 shall each be appointed for a 
 term of 2 years;
            (II) 3 shall each be appointed for 
 a term of 4 years; and
            (III) 2 shall each be appointed for 
 a term of 6 years.

    (4) Initial meeting.--Not later than 30 days after the date 
 on which all members of the Board are appointed under paragraph

    (1) , the Board shall hold an initial meeting.
            (c) Working Groups.--

    (1) In general.--The Board shall create, oversee, and 
 incorporate feedback from the following working groups (each 
 referred to in this section as a ``working group''):
        (A) An environmental justice working group.
        (B) A worker and community transition assistance 
 working group.
            (C) A research and innovation working group.

    (2) Working group members.--
        (A) In general.--Each working group shall--
            (i) be chaired by a Board member; and
            (ii) comprise not less than 10 and not more 
 than 20 individuals, who shall be experts, 
 members of directly impacted communities 
 relating to the subject matter of the working 
 group, and other relevant stakeholders.
        (B) Diversity.--Individuals on a working group 
 shall, to the maximum extent practicable, represent--
            (i) a diverse array of interests related to 
 the subject matter of the working group; and
            (ii) diverse geographical, racial, 
 religious, gender, educational, age, 
 disability, and socioeconomic backgrounds.

    (3) Meetings.--Each working group shall meet not less than 
 2 times per year.

    (4) Community and stakeholder engagement.--
        (A) In general.--Each working group shall create 
 and engage in meaningful community and stakeholder 
 involvement opportunities, including through regular 
 public community engagement activities, for purposes 
 of--
            (i) maintaining up-to-date situational 
 awareness about the needs of relevant 
 communities and stakeholders;
            (ii) using the feedback obtained through 
 those opportunities to inform the advice of the 
 working group to the Board; and
            (iii) providing a mechanism for direct and 
 substantial community feedback relating to the 
 investment plan and the funding decisions of 
 the C2FC.
        (B) Public awareness.--Each working group shall 
 inform the public about C2FC investment by engaging in 
 public awareness campaigns, which shall target relevant 
 communities through comprehensive and accessible 
 outreach methods suited for the relevant community.
            (C) Broad participation.--In carrying out 
 subparagraph
        (A) , each working group shall, to the 
 maximum extent practicable, maximize participation from 
 a broad group of stakeholders, including by holding 
 multiple meetings with significant advance notice, 
 providing access to remote participation in those 
 meetings, and holding meetings in multiple languages 
 and at different times and locations.

    (5) Tasks.--Each working group shall, as it relates to the 
 subject matter of the working group--
        (A) advise and provide general input to the Board 
 regarding loans and grants provided by the C2FC; and
        (B) consult with, and based on the activities 
 described in paragraph

    (4) , provide recommendations to, 
 the Board in the development of and updates to the 
 investment plan of the C2FC.
            (d) Investment Plan.--

    (1) In general.--The Board, in consultation with each 
 working group described in subsection
            (c) (1) , shall develop an 
 investment plan (referred to in this subsection as the 
 ``investment plan'') for the C2FC in accordance with this 
 subsection.

    (2) === Purposes ===
-The purposes of the investment plan are--
        (A) to ensure that investments made by the C2FC--
            (i) are equitable and reach the prioritized 
 communities described in subsection

    (e)

    (2) ;
            (ii) are effective at progressing towards 
 the goals described in subsection

    (a)

    (3)
            (C) ;
            (iii) support the advancement of research 
 in clean technologies and resilience; and
            (iv) are transparent to the prioritized 
 communities described in subsection

    (e)

    (2) ; and
        (B) to provide methods and standards by which the 
 Board and the working groups described in subsection
            (c) (1) shall choose projects in which to invest.

    (3) Distribution of grant funds.--The initial investment 
 plan shall require that, of the total amount of grant funds 
 provided under subsection

    (e)

    (3)
        (A) each year, not less than 40 
 percent shall be used to invest in and benefit communities 
 described in subsection

    (e)

    (2)
        (A) .

    (4) Investment plan updates.--
        (A) In general.--The Board, in consultation with 
 each working group described in subsection
            (c) (1) , 
 shall update the investment plan not later than 1 year 
 after the date of enactment of this Act, and every 4 
 years thereafter, including by taking into account--
            (i) the current needs of the prioritized 
 communities described in subsection

    (e)

    (2) ;
            (ii) the effectiveness of the previous 
 investment plan in addressing the needs of 
 those communities;
            (iii) the current state of relevant 
 research and technology;
            (iv) the resiliency needs of local 
 communities;
            (v) the goals described in subsection

    (a)

    (3)
            (C) ; and
            (vi) the 2 most recent program reviews 
 conducted under subsection

    (f) .
        (B) Effectiveness.--An investment plan shall remain 
 in effect until the date on which the Board approves an 
 updated investment plan.
            (C) Public input.--In updating the investment plan, 
 the Board and the working groups described in 
 subsection
            (c) (1) shall--
            (i) engage stakeholders and the public in a 
 public comment and feedback process; and
            (ii) ensure that the prioritized 
 communities described in subsection

    (e)

    (2) have 
 access to participate in that process.

    (5) Public updates.--The Board shall make publicly 
 available on a quarterly basis information relating to the 
 expenditure of funds under the investment plan.

    (e) Investment Tools.--

    (1) === Definitions. ===
-In this subsection:
        (A) Community of color.--The term ``community of 
 color'' means a geographically distinct area in which 
 the population of any of the following categories of 
 individuals is higher than the average population of 
 that category for the State in which the community is 
 located:
            (i) Black.
            (ii) African American.
            (iii) Asian.
            (iv) Pacific Islander.
            (v) Other non-White race.
            (vi) Hispanic.
            (vii) Latino.
            (viii) Linguistically isolated.
        (B) Eligible borrower.--The term ``eligible 
 borrower'' means any person, including a business owner 
 or project developer, that seeks a loan to carry out 
 approved practices or projects described in 
 subparagraph
        (A)
            (i) of paragraph

    (3) from an eligible 
 lender that may receive a loan guarantee under that 
 paragraph for that loan, according to criteria 
 determined by the C2FC.
            (C) Eligible entity.--The term ``eligible entity'' 
 means--
            (i) a State;
            (ii) an Indian Tribe;
            (iii) a unit of local government; and
            (iv) a research and development institution 
 (including a National Laboratory).
            (D) Eligible lender.--The term ``eligible lender'' 
 means--
            (i) a Federal- or State-chartered bank;
            (ii) a Federal- or State-chartered credit 
 union;
            (iii) an agricultural credit corporation;
            (iv) a United States Green Bank 
 Institution;
            (v) a community development financial 
 institution (as defined in 

section 103 of the 
 Community Development Banking and Financial 
 Institutions Act of 1994 (12 U.S.C. 4702));
            (vi) a minority depository institution (as 
 defined in 

section 308

    (b) of the Financial 
 Institutions Reform, Recovery, and Enforcement 
 Act of 1989 (12 U.S.C. 1463 note; Public Law 
 101-73)); and
            (vii) any other lender that the Board 
 determines has a demonstrated ability to 
 underwrite and service loans for the intended 
 approved practice for which the loan will be 
 used.
        (E) Environmental justice community.--The term 
 ``environmental justice community'' means a community 
 with significant representation of communities of 
 color, low-income communities, or Tribal and indigenous 
 communities that experiences, or is at risk of 
 experiencing, higher or more adverse human health or 
 environmental effects.
        (F) Indian tribe.--The term ``Indian Tribe'' has 
 the meaning given the term in 

section 4 of the Indian 
 Self-Determination and Education Assistance Act (25 
 U.S.C. 5304).
        (G) Low-income community.--The term ``low-income 
 community'' means any census block group in which 30 
 percent or more of the population are individuals with 
 an annual household income equal to, or less than, the 
 greater of--
            (i) an amount equal to 80 percent of the 
 median income of the area in which the 
 household is located, as reported by the 
 Department of Housing and Urban Development; 
 and
            (ii) 200 percent of the Federal poverty 
 line.
        (H) State.--The term ``State'' means--
            (i) a State;
            (ii) the District of Columbia;
            (iii) the Commonwealth of Puerto Rico; and
            (iv) any other territory or possession of 
 the United States.

    (2) Community prioritization.--In providing financial 
 investment and other assistance under paragraph

    (3) , the C2FC 
 shall give priority to, as determined by the C2FC--
        (A) environmental justice communities, communities 
 of color, indigenous communities, rural communities, 
 and low-income communities that--
            (i) experience a disproportionate burden of 
 the negative human health and environmental 
 impacts of pollution or other environmental 
 hazards, such as natural disasters; or
            (ii) may not have access to public 
 information and opportunities for meaningful 
 public participation relating to human health 
 and environmental planning, regulations, and 
 enforcement;
        (B) deindustrialized communities or communities 
 with significant local economic reliance on carbon-
 intensive industries;
            (C) low-income communities at risk of impacts of 
 natural disasters or sea level rise exacerbated by 
 climate change;
            (D) public or nonprofit entities that serve 
 dislocated workers, veterans, or individuals with a 
 barrier to employment; and
        (E) communities that have minimal or no investment 
 in the approved practices and projects described in 
 paragraph

    (3)
        (A)
            (i) .

    (3) Grants, loan guarantees, and other investment tools.--
        (A) In general.--The C2FC--
            (i) shall provide grants to eligible 
 entities and loan guarantees to eligible 
 lenders issuing loans to eligible borrowers for 
 approved practices and projects relating to 
 climate change mitigation and resilience 
 measures, including--
            (I) energy efficiency upgrades to 
 infrastructure;
            (II) electric, hydrogen, and clean 
 transportation programs and deployment, 
 including programs--

    (aa) to purchase personal 
 vehicles, commercial vehicles, 
 and public transportation 
 fleets and school bus fleets;

    (bb) to deploy electric 
 vehicle charging and hydrogen 
 fueling infrastructure; and
            (cc) to develop and deploy 
 sustainable aviation fuels;
            (III) clean energy and clean 
 vehicle manufacturing research, 
 demonstrations, and deployment, with a 
 particular focus on projects relating 
 to the commercialization of new 
 technologies;
            (IV) battery storage research, 
 demonstrations, and deployment;
            (V) development or purchase of 
 equipment for practices described in 
 

section 6;
            (VI) development and deployment of 
 clean energy and clean technologies, 
 with a focus on--

    (aa) carbon capture, 
 utilization, and sequestration, 
 bioenergy with carbon capture 
 and sequestration, and direct 
 air capture;

    (bb) energy storage and 
 grid modernization;
            (cc) geothermal energy;
            (dd) commercial and 
 residential solar;

    (ee) wind energy; and

    (ff) any other clean 
 technology use or development, 
 as determined by the Board;
            (VII) measures that anticipate and 
 prepare for climate change impacts, and 
 reduce risks and enhance resilience to 
 sea level rise, extreme weather events, 
 heat island impacts, and other climate 
 change impacts, as determined by the 
 Board, including by--

    (aa) building resilient 
 energy, water, and 
 transportation infrastructure;

    (bb) providing 
 weatherization assistance for 
 low-income households; and
            (cc) increasing the 
 physical and economic 
 resilience of the agriculture 
 sector; and
            (VIII) natural infrastructure 
 research, demonstrations, and 
 deployment; and
            (ii) may implement other investment tools 
 and products approved by the Board, pursuant to 
 subparagraph
            (C) , to achieve the mission of the 
 C2FC described in subsection

    (a)

    (2) .
        (B) Loan guarantees.--
            (i) In general.--In providing loan 
 guarantees under subparagraph
        (A) , the C2FC 
 shall cooperate with eligible lenders through 
 agreements to participate on a deferred

    (guaranteed) basis.
            (ii) Level of participation in guaranteed 
 loans.--In providing a loan guarantee under 
 subparagraph
        (A) , the C2FC shall guarantee 75 
 percent of the balance of the financing 
 outstanding at the time of disbursement of the 
 loan.
            (iii) Interest rates.--Notwithstanding the 
 provisions of the constitution of any State or 
 the laws of any State limiting the rate or 
 amount of interest that may be charged, taken, 
 received, or reserved, the maximum legal rate 
 of interest on any financing made on a deferred 
 basis under this subsection shall not exceed a 
 rate prescribed by the C2FC.
            (iv) Guarantee fees.--
            (I) In general.--With respect to 
 each loan guaranteed under this 
 subsection (other than a loan that is 
 repayable in 1 year or less), the C2FC 
 shall collect a guarantee fee, which 
 shall be payable by the eligible 
 lender, and may be charged to the 
 eligible borrower in accordance with 
 subclause
            (II) .
            (II) Borrower charges.--A guarantee 
 fee described in subclause
            (I) charged 
 to an eligible borrower shall not--

    (aa) exceed 2 percent of 
 the deferred participation 
 share of a total loan amount 
 that is equal to or less than 
 $150,000;

    (bb) exceed 3 percent of 
 the deferred participation 
 share of a total loan amount 
 that is greater than $150,000 
 but less than $700,000; or
            (cc) exceed 3.5 percent of 
 the deferred participation 
 share of a total loan amount 
 that is equal to or greater 
 than $700,000.
            (C) Other investment tools and products.--
            (i) In general.--The Board may, based on 
 market needs, develop and implement any other 
 investment tool or product necessary to achieve 
 the mission of the C2FC described in subsection

    (a)

    (2) and the deployment of projects described 
 in subparagraph
        (A)
            (i) , including offering--
            (I) warehousing and aggregation 
 credit facilities;
            (II) zero interest loans;
            (III) credit enhancements; and
            (IV) construction finance.
            (ii) State and local green banks.--The 
 Board shall provide--
            (I) funds to United States Green 
 Bank Institutions as necessary to 
 finance projects that are best served 
 by those entities; and
            (II) technical assistance as 
 necessary to States and localities 
 seeking to establish green banks.
            (D) Prohibited investments.--The Board shall not 
 issue loans, grants, or otherwise invest in any 
 activities that directly or indirectly contradict the 
 mission of the C2FC described in subsection

    (a)

    (2) .

    (4) Wage rate requirements.--
        (A) In general.--All laborers and mechanics 
 employed by eligible entities and eligible borrowers on 
 projects funded directly by or assisted in whole or in 
 part by the activities of the C2FC under this section 
 shall be paid at 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 (commonly known as the ``Davis-
 Bacon Act'').
        (B) Authority.--With respect to the labor standards 
 specified in subparagraph
        (A) , the Secretary of Labor 
 shall have the authority and functions set forth in 
 Reorganization Plan No. 14 of 1950 (64 Stat. 1267; 5 
 U.S.C. App.) and 

section 3145 of title 40, United 
 States Code.

    (5) Buy america requirements.--
        (A) In general.--All iron, steel, and manufactured 
 goods used for projects under this section shall be 
 produced in the United States.
        (B) Waiver.--The Board may waive the requirement in 
 subparagraph
        (A) if the Board finds that--
            (i) enforcing the requirement would be 
 inconsistent with the public interest;
            (ii) the iron, steel, and manufactured 
 goods produced in the United States are not 
 produced in a sufficient and reasonably 
 available amount or are not of a satisfactory 
 quality; or
            (iii) enforcing the requirement will 
 increase the overall cost of the project by 
 more than 25 percent.

    (f) Program Review and Report.--Not later than 2 years after the 
date of enactment of this Act, and every 2 years thereafter, the Board 
shall--

    (1) conduct a review of the activities of the C2FC and 
 identify projects and funding opportunities that were a part of 
 the current investment plan; and

    (2) submit to Congress and make publicly available a report 
 that--
        (A) describes the projects and funding 
 opportunities that have been most successful in 
 progressing towards the mission described in subsection

    (a)

    (2) during the time period covered by the report;
        (B) includes recommendations on the clean energy 
 and resiliency projects that should be prioritized in 
 forthcoming years to achieve that mission;
            (C) quantifies the total amount and percentage of 
 funding given to prioritized communities described in 
 subsection

    (e)

    (2) ; and
            (D) identifies barriers for disadvantaged groups to 
 receive C2FC funding and provides recommendations to 
 address those barriers.

    (g) Initial Capitalization.--There is appropriated to carry out 
this section (including for administrative costs of the C2FC), out of 
any funds in the Treasury not otherwise appropriated, $7,500,000,000 
for each of fiscal years 2026 and 2027, to remain available until 
expended.

SEC. 3. CARBON FEE.

    (a) In General.--Chapter 38 of subtitle D of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new 
subchapter:

 ``Subchapter E--Carbon Fee

``

Sec. 4691. Definitions.
``

Sec. 4692. Carbon fee.
``

Sec. 4693. Fee on noncovered fuel emissions.
``

Sec. 4694. Refunds for carbon capture, sequestration, and 
 utilization.
``

Sec. 4695. Border adjustments.

``

SEC. 4691. DEFINITIONS.

 ``For purposes of this subchapter--
 ``

    (1) Administrator.--The term `Administrator' means the 
 Administrator of the Environmental Protection Agency.
 ``

    (2) Carbon dioxide equivalent or co<INF>2</INF>-e.--The 
 term `carbon dioxide equivalent' or `CO<INF>2</INF>-e' means 
 the number of metric tons of carbon dioxide emissions with the 
 same global warming potential over a 100-year period as one 
 metric ton of another greenhouse gas.
 ``

    (3) Carbon-intensive product.--The term `carbon-intensive 
 product' means--
 ``
        (A) iron, steel, steel mill products (including 
 pipe and tube), aluminum, cement, glass (including 
 flat, container, and specialty glass and fiberglass), 
 pulp, paper, chemicals, or industrial ceramics, and
 ``
        (B) any manufactured product which the Secretary, 
 in consultation with the Administrator, the Secretary 
 of Commerce, and the Secretary of Energy, determines is 
 energy-intensive and trade-exposed (with the exception 
 of any covered fuel).
 ``

    (4) Covered entity.--The term `covered entity' means--
 ``
        (A) in the case of crude oil--
 ``
            (i) any operator of a United States 
 refinery (as described in subsection
            (d) (1) of 
 

section 4611), and
 ``
            (ii) any person entering such product 
 into the United States for consumption, use, or 
 warehousing (as described in subsection
            (d) (2) of such section),
 ``
        (B) in the case of coal--
 ``
            (i) any producer subject to the tax under 
 

section 4121, and
 ``
            (ii) any importer of coal into the United 
 States,
 ``
            (C) in the case of natural gas--
 ``
            (i) any entity which produces natural gas 
 (as defined in 

section 613A

    (e)

    (2) ) from a well 
 located in the United States, and
 ``
            (ii) any importer of natural gas into the 
 United States,
 ``
            (D) in the case of any noncovered fuel emissions, 
 the entity which is the source of such emissions, 
 provided that the total amount of carbon dioxide or 
 methane emitted by such entity for the preceding year 
 (as determined using the methodology required under 
 

section 4692

    (e)

    (4) ) was not less than 25,000 metric 
 tons, and
 ``
        (E) any entity or class of entities which, as 
 determined by the Secretary, is transporting, selling, 
 or otherwise using a covered fuel in a manner which 
 emits a greenhouse gas into the atmosphere and which 
 has not been covered by the carbon fee, the fee on 
 noncovered fuel emissions, or the carbon border fee 
 adjustment.
 ``

    (5) Covered fuel.--The term `covered fuel' means crude 
 oil, natural gas, coal, or any other product derived from crude 
 oil, natural gas, or coal which shall be used so as to emit 
 greenhouse gases to the atmosphere.
 ``

    (6) Greenhouse gas.--The term `greenhouse gas'--
 ``
        (A) has the meaning given such term in 

section 901 of the Energy Independence and Security Act of 2007 
 (42 U.S.C. 17321), as in effect on the date of the 
 enactment of the America's Clean Future Fund Act, and
 ``
        (B) includes any other gases identified by rule 
 of the Administrator.
 ``

    (7) Greenhouse gas content.--The term `greenhouse gas 
 content' means the amount of greenhouse gases, expressed in 
 metric tons of CO<INF>2</INF>-e, which would be emitted to the 
 atmosphere by the use of a covered fuel.
 ``

    (8) Noncovered fuel emission.--The term `noncovered fuel 
 emission' means any carbon dioxide or methane emitted as a 
 result of the production, processing, transport, or use of any 
 product or material within the energy or industrial sectors--
 ``
        (A) including any fugitive or process emissions 
 associated with the production, processing, or 
 transport of a covered fuel, and
 ``
        (B) excluding any emissions from the combustion 
 or use of a covered fuel.
 ``

    (9) Qualified carbon oxide.--The term `qualified carbon 
 oxide' has the meaning given the term in 

section 45Q
            (c) .
 ``

    (10) United states.--The term `United States' shall be 
 treated as including each possession of the United States 
 (including the Commonwealth of Puerto Rico and the Commonwealth 
 of the Northern Mariana Islands).

``

SEC. 4692. CARBON FEE.

 ``

    (a) 

=== Definitions. ===
-In this section:
 ``

    (1) Applicable period.--The term `applicable period' 
 means, with respect to any determination made by the Secretary 
 under subsection

    (e)

    (3) for any calendar year, the period--
 ``
        (A) beginning on January 1, 2027, and
 ``
        (B) ending on December 31 of the preceding 
 calendar year.
 ``

    (2) Cumulative emissions.--The term `cumulative 
 emissions' means an amount equal to the sum of any greenhouse 
 gas emissions resulting from the use of covered fuels and any 
 noncovered fuel emissions for all years during the applicable 
 period.
 ``

    (3) Cumulative emissions target.--The term `cumulative 
 emissions target' means an amount equal to the sum of the 
 emissions targets for all years during the applicable period.
 ``

    (4) Emissions target.--The term `emissions target' means 
 the target for greenhouse gas emissions during a calendar year 
 as determined under subsection

    (e)

    (1) .
 ``

    (b) Carbon Fee.--During any calendar year that begins after 
December 31, 2026, there is imposed a carbon fee on any covered 
entity's use, sale, or transfer of any covered fuel.
 ``
            (c) Amount of the Carbon Fee.--The carbon fee imposed by this 
section is an amount equal to--
 ``

    (1) the greenhouse gas content of the covered fuel, 
 multiplied by
 ``

    (2) the carbon fee rate, as determined under subsection
            (d) .
 ``
            (d) Carbon Fee Rate.--The carbon fee rate shall be determined in 
accordance with the following:
 ``

    (1) In general.--The carbon fee rate, with respect to any 
 use, sale, or transfer during a calendar year, shall be--
 ``
        (A) in the case of calendar year 2027, $75, and
 ``
        (B) except as provided in paragraphs

    (2) and

    (3) , 
 in the case of any calendar year after 2027, the amount 
 equal to the sum of--
 ``
            (i) the amount under subparagraph
        (A) , 
 plus--
 ``
            (ii) 
            (I) in the case of calendar year 
 2028, $10, and
 ``
            (II) in the case of any calendar year 
 after 2028, the amount in effect under this 
 clause for the preceding calendar year, plus 
 $10.
 ``

    (2) Inflation adjustment.--
 ``
        (A) In general.--In the case of any calendar year 
 after 2027, the amount determined under paragraph

    (1)
        (B) shall be increased by an amount equal to--
 ``
            (i) that dollar amount, multiplied by
 ``
            (ii) the cost-of-living adjustment 
 determined under 

section 1

    (f)

    (3) for that 
 calendar year, determined by substituting 
 `2026' for `2016' in subparagraph
        (A)
            (ii) thereof.
 ``
        (B) Rounding.--If any increase determined under 
 subparagraph
        (A) is not a multiple of $1, such increase 
 shall be rounded up to the next whole dollar amount.
 ``

    (3) Adjustment of carbon fee rate.--
 ``
        (A) Increase in rate following missed cumulative 
 emissions target.--In the case of any calendar year 
 following a determination by the Secretary pursuant to 
 subsection

    (e)

    (3) that the cumulative emissions for the 
 preceding calendar year exceeded the cumulative 
 emissions target for such year, paragraph

    (1)
        (B)
            (ii) 
            (II) shall be applied--
 ``
            (i) in the case of calendar years 2029 
 through 2030, by substituting `$15' for `$10',
 ``
            (ii) in the case of calendar years 2031 
 through 2040, by substituting `$20' for `$10', 
 and
 ``
            (iii) in the case of any calendar year 
 beginning after 2040, by substituting `$25' for 
 `$10'.
 ``
        (B) Cessation of rate increase following 
 achievement of cumulative emissions target.--In the 
 case of any year following a determination by the 
 Secretary pursuant to subsection

    (e)

    (3) that--
 ``
            (i) the average annual emissions of 
 greenhouse gases from covered entities over the 
 preceding 3-year period are not more than 10 
 percent of the greenhouse gas emissions during 
 the year 2018, and
 ``
            (ii) the cumulative emissions did not 
 exceed the cumulative emissions target,
 paragraph

    (1)
        (B)
            (ii) 
            (II) shall be applied by 
 substituting `$0' for `$10'.
 ``
            (C) Methodology.--With respect to any year, the 
 annual greenhouse gas emissions and cumulative 
 emissions described in subparagraph
        (A) or
        (B) shall be 
 determined using the methodology required under 
 subsection

    (e)

    (4) .
 ``

    (e) Emissions Targets.--
 ``

    (1) In general.--
 ``
        (A) Reference year.--For purposes of subsection
            (d) , the emissions target for any year shall be the 
 amount of greenhouse gas emissions that is equal to--
 ``
            (i) for calendar years 2027 and 2028, the 
 applicable percentage of the total amount of 
 greenhouse gas emissions from the use of any 
 covered fuel during calendar year 2018, and
 ``
            (ii) for calendar year 2029 and each 
 calendar year thereafter, the applicable 
 percentage of the total amount of greenhouse 
 gas emissions from the use of any covered fuel 
 and noncovered fuel emissions during calendar 
 year 2018.
 ``
        (B) Methodology.--For purposes of subparagraph
        (A) , with respect to determining the total amount of 
 greenhouse gas emissions from the use of any covered 
 fuel and noncovered fuel emissions during calendar year 
 2018, the Administrator shall use such methods as are 
 determined appropriate, provided that such methods are, 
 to the greatest extent practicable, comparable to the 
 methods established under paragraph

    (4) .
 ``

    (2) Applicable percentage.--
 ``
        (A) 2027 through 2035.--In the case of calendar 
 years 2027 through 2035, the applicable percentage 
 shall be determined as follows:
``Year Applicable percentage
 2027............................................... 63 percent
 2028............................................... 60 percent
 2029............................................... 57 percent
 2030............................................... 55 percent
 2031............................................... 52 percent
 2032............................................... 49 percent
 2033............................................... 46 percent
 2034............................................... 43 percent
 2035............................................... 40 percent

 ``
        (B) 2036 through 2050.--In the case of calendar 
 years 2036 through 2050, the applicable percentage 
 shall be equal to--
 ``
            (i) the applicable percentage for the 
 preceding year, minus
 ``
            (ii) 2 percentage points.
 ``
            (C) After 2050.--In the case of any calendar year 
 beginning after 2050, the applicable percentage shall 
 be equal to 10 percent.
 ``

    (3) Emissions reporting and determinations.--
 ``
        (A) Reporting.--Not later than September 30, 
 2027, and annually thereafter, the Administrator, in 
 consultation with the Secretary, shall make available 
 to the public a report on--
 ``
            (i) the cumulative emissions with respect 
 to the preceding calendar year, and
 ``
            (ii) any other relevant information, as 
 determined appropriate by the Administrator.
 ``
        (B) Determinations.--Not later than September 30, 
 2029, and annually thereafter, the Administrator, in 
 consultation with the Secretary and as part of the 
 report described in subparagraph
        (A) , shall determine 
 whether cumulative emissions with respect to the 
 preceding calendar year exceeded the cumulative 
 emissions target with respect to such year.
 ``

    (4) Emissions accounting methodology.--
 ``
        (A) In general.--Not later than January 1, 2027, 
 the Administrator shall prescribe rules for greenhouse 
 gas accounting for covered entities for purposes of 
 this subchapter, which shall--
 ``
            (i) to the greatest extent practicable, 
 employ existing data collection methodologies 
 and greenhouse gas accounting practices, 
 including such methodologies and practices 
 developed by the National Laboratories (as 
 defined in 

section 2 of the Energy Policy Act 
 of 2005 (42 U.S.C. 15801)),
 ``
            (ii) ensure that the method of 
 accounting--
 ``
            (I) applies to--
 ``

    (aa) all greenhouse gas 
 emissions from covered fuels 
 and all noncovered fuel 
 emissions, and
 ``

    (bb) all covered 
 entities,
 ``
            (II) excludes--
 ``

    (aa) any greenhouse gas 
 emissions which are not 
 described item

    (aa) of 
 subclause
            (I) , and
 ``

    (bb) any entities which 
 are not described in item

    (bb) of such subclause, and
 ``
            (III) appropriately accounts 
 for--
 ``

    (aa) qualified carbon 
 oxide which is captured and 
 disposed or used in a manner 
 described in 

section 4694, and
 ``

    (bb) nonemitting uses of 
 covered fuels, as described in 
 subsection

    (f) ,
 ``
            (iii) subject to such penalties as are 
 determined appropriate by the Administrator, 
 require any covered entity to report, not later 
 than April 1 of each calendar year--
 ``
            (I) the total greenhouse gas 
 content of any covered fuels used, 
 sold, or transferred by such covered 
 entity during the preceding calendar 
 year, and
 ``
            (II) the total noncovered fuel 
 emissions of the covered entity during 
 the preceding calendar year, and
 ``
            (iv) require any information reported 
 pursuant to clause
            (iii) to be verified by a 
 third-party entity that, subject to such 
 process as is determined appropriate by the 
 Administrator, has been certified by the 
 Administrator with respect to the 
 qualifications, independence, and reliability 
 of such entity.
 ``
        (B) Greenhouse gas reporting program.--For 
 purposes of establishing the rules described in 
 subparagraph
        (A) , the Administrator may elect to modify 
 the activities of the Greenhouse Gas Reporting Program 
 established under part 98 of title 40, Code of Federal 
 Regulations, as in effect on January 1, 2025, to 
 satisfy the requirements described in clauses
            (i) through
            (iv) of such subparagraph.
 ``

    (5) Revisions.--With respect to any determination made by 
 the Administrator as to the amount of greenhouse gas emissions 
 for any calendar year (including calendar year 2018), any 
 subsequent revision by the Administrator with respect to such 
 amount shall apply for purposes of the fee imposed under 
 subsection

    (b) for any calendar years beginning after such 
 revision.
 ``

    (f) Exemption and Refund.--The Secretary shall prescribe such 
rules as are necessary to ensure the carbon fee imposed by this section 
is not imposed with respect to any nonemitting use, or any sale or 
transfer for a nonemitting use, including rules providing for the 
refund of any carbon fee paid under this section with respect to any 
such use, sale, or transfer.
 ``

    (g) Administrative Authority.--The Secretary, in consultation 
with the Administrator, shall prescribe such regulations, and other 
guidance, to assess and collect the carbon fee imposed by this section, 
including--
 ``

    (1) the identification of covered entities that are 
 liable for payment of a fee under this section or 

section 4693,
 ``

    (2) as may be necessary or convenient, rules for 
 distinguishing between different types of covered entities,
 ``

    (3) as may be necessary or convenient, rules for 
 distinguishing between the greenhouse gas emissions of a 
 covered entity and the greenhouse gas emissions that are 
 attributed to the covered entity but not directly emitted by 
 the covered entity,
 ``

    (4) requirements for the quarterly payment of such fees, 
 and
 ``

    (5) rules to ensure that the carbon fee under this 
 section, the fee on noncovered fuel emissions under 

section 4693, or the carbon border fee adjustment is not imposed on an 
 emission from covered fuel or noncovered fuel emission more 
 than once.

``

SEC. 4693. FEE ON NONCOVERED FUEL EMISSIONS.

 ``

    (a) In General.--During any calendar year that begins after 
December 31, 2028, there is imposed a fee on a covered entity for any 
noncovered fuel emissions which occur during the calendar year.
 ``

    (b) Amount.--The fee to be paid under subsection

    (a) by the 
covered entity which is the source of the emissions described in that 
subsection shall be an amount equal to--
 ``

    (1) the total amount, in metric tons of CO<INF>2</INF>-e, 
 of emitted greenhouse gases, multiplied by
 ``

    (2) an amount equal to the carbon fee rate in effect 
 under 

section 4692
            (d) for the calendar year of such emission.
 ``
            (c) Administrative Authority.--The Secretary, in consultation 
with the Administrator, shall prescribe such regulations, and other 
guidance, to assess and collect the carbon fee imposed by this section, 
including regulations describing the requirements for the quarterly 
payment of such fees.

``

SEC. 4694. REFUNDS FOR CARBON CAPTURE, SEQUESTRATION, AND 
 UTILIZATION.

 ``

    (a) In General.--
 ``

    (1) Capture, sequestration, and use.--The Secretary, in 
 consultation with the Administrator and the Secretary of 
 Energy, shall prescribe regulations for providing payments to 
 any person which captures qualified carbon oxide which is--
 ``
        (A) disposed of by such person in secure 
 geological storage, as described in 

section 45Q

    (f)

    (2) , 
 or
 ``
        (B) used in a manner which has been approved by 
 the Secretary pursuant to subsection
            (c) .
 ``

    (2) Election.--If the person described in paragraph

    (1) makes an election under this paragraph in such time and manner 
 as the Secretary may prescribe by regulations, the credit under 
 this section--
 ``
        (A) shall be allowable to the person that owns 
 the facility described in subsection

    (b)

    (1) , and
 ``
        (B) shall not be allowable to the person 
 described in paragraph

    (1) .
 ``

    (b) Payments for Carbon Capture.--
 ``

    (1) In general.--In the case of any facility for which 
 carbon capture equipment has been placed in service, the 
 Secretary shall make payments in the same manner as if such 
 payment was a refund of an overpayment of the fee imposed by 
 

section 4692 or 4693.
 ``

    (2) Amount of payment.--The payment determined under this 
 subsection shall be an amount equal to--
 ``
        (A) the metric tons of qualified carbon oxide 
 captured and disposed of, used, or utilized in a manner 
 consistent with subsection

    (a) , multiplied by
 ``
        (B)
            (i) the carbon fee rate during the year in 
 which the carbon fee was imposed by 

section 4692 on the 
 covered fuel to which such carbon oxide relates, or
 ``
            (ii) in the case of a direct air capture facility 
 (as defined in 

section 45Q

    (e)

    (1) ), the carbon fee rate 
 during the year in which the qualified carbon oxide was 
 captured and disposed of, used, or utilized.
 ``
            (c) Approved Uses of Qualified Carbon Oxide.--
 ``

    (1) In general.--Subject to paragraph

    (2) , the Secretary, 
 in consultation with Administrator and the Secretary of Energy, 
 shall, through regulation or other public guidance, determine 
 which uses of qualified carbon oxide are eligible for payments 
 under this section, which may include--
 ``
        (A) utilization in a manner described in clause
            (i) or
            (ii) of 

section 45Q

    (f)

    (5)
        (A) , or
 ``
        (B) any other use which ensures minimal leakage 
 or escape of such carbon oxide.
 ``

    (2) Exclusion for enhanced oil or natural gas recovery.--
 The sale or use of qualified carbon oxide as a tertiary 
 injectant in a qualified enhanced oil or natural gas recovery 
 project (as defined in 

section 45Q

    (e)

    (4) ) shall not be eligible 
 for payments under this section.
 ``
            (d) Exception.--In the case of any facility which is owned by an 
entity that is determined to be--
 ``

    (1) in violation of any applicable air or water quality 
 regulations, or
 ``

    (2) with respect to any environmental justice community 
 (as defined in 

section 2
            (d) (1)
            (D) of the America's Clean Future 
 Fund Act), creating health or environmental harm to such 
 community,
 such facility shall not be eligible for any payment under this 
 section during the period of such violation.

``

SEC. 4695. BORDER ADJUSTMENTS.

 ``

    (a) In General.--The fees imposed by, and refunds allowed under, 
this section shall be referred to as `the carbon border fee 
adjustment'.
 ``

    (b) Exports.--
 ``

    (1) Carbon-intensive products.--In the case of any 
 carbon-intensive product which is exported from the United 
 States, the Secretary shall pay to the person exporting such 
 product a refund equal to the amount of the cost of such 
 product attributable to any fees imposed under this subchapter 
 related to the manufacturing of such product (as determined 
 under regulations established by the Secretary).
 ``

    (2) Covered fuels.--In the case of any covered fuel which 
 is exported from the United States, the Secretary shall pay to 
 the person exporting such fuel a refund equal to the amount of 
 the cost of such fuel attributable to any fees imposed under 
 this subchapter related to the use, sale, or transfer of such 
 fuel.
 ``
            (c) Imports.--
 ``

    (1) Carbon-intensive products.--
 ``
        (A) Imposition of equivalency fee.--In the case 
 of any carbon-intensive product imported into the 
 United States, there is imposed an equivalency fee on 
 the person importing such product in an amount equal to 
 the cost of such product that would be attributable to 
 any fees imposed under this subchapter related to the 
 manufacturing of such product if any inputs or 
 processes used in manufacturing such product were 
 subject to such fees (as determined under regulations 
 established by the Secretary).
 ``
        (B) Reduction in fee.--The amount of the 
 equivalency fee under subparagraph
        (A) shall be reduced 
 by the amount, if any, of any fees imposed on the 
 carbon-intensive product by the foreign nation or 
 governmental units from which such product was 
 imported.
 ``

    (2) Covered fuels.--
 ``
        (A) In general.--In the case of any covered fuel 
 imported into the United States, there is imposed an 
 equivalency fee on the person importing such fuel in an 
 amount equal to the amount of any fees that would be 
 imposed under this subchapter related to the use, sale, 
 or transfer of such fuel.
 ``
        (B) Reduction in fee.--The amount of the fee 
 under subparagraph
        (A) shall be reduced by the amount, 
 if any, of any fees imposed on the covered fuel by the 
 foreign nation or governmental units from which the 
 fuel was imported.
 ``
            (d) Treatment of Alternative Policies as Fees.--Under regulations 
established by the Secretary, foreign policies that have substantially 
the same effect in reducing emissions of greenhouse gases as fees shall 
be treated as fees for purposes of subsections

    (b) and
            (c) .
 ``

    (e) Regulatory Authority.--
 ``

    (1) In general.--The Secretary shall consult with the 
 Administrator, the Secretary of Commerce, and the Secretary of 
 Energy in establishing rules and regulations implementing the 
 purposes of this section.
 ``

    (2) Treaties.--The Secretary, in consultation with the 
 Secretary of State, may adjust the applicable amounts of the 
 refunds and equivalency fees under this section in a manner 
 that is consistent with any obligations of the United States 
 under an international agreement.''.

    (b) Effective Date.--The amendment made by this section shall apply 
to periods beginning after December 31, 2026.

SEC. 4. AMERICA'S CLEAN FUTURE FUND.

    (a) In General.--Subchapter A of chapter 98 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following:

``

SEC. 9512. AMERICA'S CLEAN FUTURE FUND.

 ``

    (a) Establishment and Funding.--There is established in the 
Treasury of the United States a trust fund to be known as the 
`America's Clean Future Fund' (referred to in this section as the 
`Trust Fund'), consisting of such amounts as are appropriated to the 
Trust Fund under subsection

    (b) .
 ``

    (b) Transfers to America's Clean Future Fund.--There is 
appropriated to the Trust Fund, out of any funds in the Treasury not 
otherwise appropriated, amounts equal to the fees received into the 
Treasury under sections 4692, 4693, and 4695, less--
 ``

    (1) any amounts refunded or paid under sections 4692
            (d) , 
 4694, and 4695

    (b) , and
 ``

    (2) for each of the first 14 fiscal years beginning after 
 September 30, 2027, an amount equal to the quotient of--
 ``
        (A) $100,000,000,000, and
 ``
        (B) 14.
 ``
            (c) Expenditures.--For each fiscal year, amounts in the Trust 
Fund shall be apportioned as follows:
 ``

    (1) Carbon fee rebate and agricultural decarbonization 
 transition payments.--
 ``
        (A) Carbon fee rebate.--For the purposes 
 described in 

section 5 of the America's Clean Future 
 Fund Act and any expenses necessary to administer such 
 section--
 ``
            (i) for each of the first 10 fiscal years 
 beginning after September 30, 2027, an amount 
 equal to--
 ``
            (I) 75 percent of those amounts, 
 minus
 ``
            (II) the amount determined under 
 subparagraph
        (B) for such fiscal year, 
 and
 ``
            (ii) for any fiscal year beginning after 
 the period described in clause
            (i) , the 
 applicable percentage of such amounts.
 ``
        (B) Agricultural decarbonization transition 
 payments.--For the purposes described in 

section 6 of 
 the America's Clean Future Fund Act, for each of the 
 first 10 fiscal years beginning after September 30, 
 2027, an amount equal to 7 percent of the amount 
 determined annually under subparagraph
        (A)
            (i) 
            (I) .
 ``
            (C) Applicable percentage.--For purposes of 
 subparagraph
        (A)
            (ii) , the applicable percentage shall 
 be equal to--
 ``
            (i) for the first fiscal year beginning 
 after the period described in subparagraph
        (A)
            (i) , 76 percent,
 ``
            (ii) for each of the first 3 fiscal years 
 subsequent to the period described in clause
            (i) , the applicable percentage for the 
 preceding fiscal year increased by 1 percentage 
 point, and
 ``
            (iii) for any fiscal year subsequent to 
 the period described in clause
            (ii) , 80 
 percent.
 ``

    (2) Climate change finance corporation.--
 ``
        (A) In general.--For the purposes described in 
 

section 2 of the America's Clean Future Fund Act 
 (including any expenses necessary to administer such 
 section), the applicable percentage of such amounts.
 ``
        (B) Applicable percentage.--For purposes of this 
 paragraph, the applicable percentage shall be equal 
 to--
 ``
            (i) for each of the first 10 fiscal years 
 beginning after the period described in 
 subsection

    (e) of such section, 15 percent,
 ``
            (ii) for each of the first 4 fiscal years 
 subsequent to the period described in clause
            (i) , the applicable percentage for the 
 preceding fiscal year increased by 1 percentage 
 point, and
 ``
            (iii) for any fiscal year subsequent to 
 the period described in clause
            (ii) , 20 
 percent.
 ``

    (3) Transition assistance for impacted communities.--
 ``
        (A) In general.--For the purposes described in 
 

section 7 of the America's Clean Future Fund Act 
 (including any expenses necessary to administer such 
 section), the applicable percentage of such amounts.
 ``
        (B) Applicable percentage.--For purposes of this 
 paragraph, the applicable percentage shall be equal 
 to--
 ``
            (i) for each of the first 10 fiscal years 
 beginning after September 30, 2027, 10 percent,
 ``
            (ii) for each of the first 4 fiscal years 
 subsequent to the period described in clause
            (i) , the applicable percentage for the 
 preceding fiscal year reduced by 2 percentage 
 points, and
 ``
            (iii) for any fiscal year subsequent to 
 the period described in clause
            (ii) , 0 
 percent.''.

    (b) Clerical Amendment.--The table of sections for subchapter A of 
chapter 98 of the Internal Revenue Code of 1986 is amended by adding at 
the end the following new item:

``

Sec. 9512. America's Clean Future Fund.''.

SEC. 5. AMERICA'S CLEAN FUTURE FUND STIMULUS.

    (a) Eligible Individual.--

    (1) In general.--In this section, the term ``eligible 
 individual'' means, with respect to any quarter, any natural 
 living person--
        (A) who has a valid Social Security number or 
 taxpayer identification number,
        (B) who has attained 18 years of age, and
            (C) whose principal place of abode is in the United 
 States for more than one-half of the most recent 
 taxable year for which a return has been filed.

    (2) Verification.--The Secretary of the Treasury, or the 
 Secretary's delegate (referred to in this section as the 
 ``Secretary'') may verify the eligibility of an individual to 
 receive a carbon fee rebate payment under subsection

    (b) .

    (b) Rebates.--Subject to subsections
            (c) (2) and

    (k) , from amounts 
in the America's Clean Future Fund established by 

section 9512
            (c) (1)
        (A) of the Internal Revenue Code of 1986 that are available in any year, 
the Secretary shall, for each calendar quarter beginning after 
September 30, 2027, make carbon fee rebate payments to each eligible 
individual, to be known as ``America's Clean Future Fund Stimulus 
payments'' (referred to in this section as ``carbon fee rebate 
payments'').
            (c) Pro-Rata Share.--

    (1) In general.--With respect to each quarter during any 
 fiscal year beginning after September 30, 2027, the carbon fee 
 rebate payment is 1 pro-rata share for each eligible individual 
 of an amount equal to 25 percent of amounts apportioned under 
 

section 9512
            (c) (1)
        (A) of the Internal Revenue Code of 1986 for 
 such fiscal year.

    (2) Initial annual rebate payments.--
        (A) In general.--From amounts appropriated under 
 subsection

    (j) , the Secretary shall, for each of fiscal 
 years 2026 and 2027, make carbon fee rebate payments to 
 each eligible individual during the third quarter of 
 each such fiscal year.
        (B) Pro-rata share.--For purposes of this 
 paragraph, the carbon fee rebate payment is 1 pro-rata 
 share for each eligible individual of the amount 
 appropriated under subsection

    (j) for the fiscal year.

    (3) Estimate.--For each fiscal year described in paragraph

    (1) , the Secretary shall, not later than the first day of such 
 fiscal year, publicly announce an estimate of the amount of the 
 carbon fee rebate payment for each quarter during such fiscal 
 year.
            (d) Phaseout.--

    (1) === Definitions. ===
-In this subsection:
        (A) Modified adjusted gross income.--The term 
 ``modified adjusted gross income'' means adjusted gross 
 income increased by any amount excluded from gross 
 income under 

section 911, 931, or 933 of the Internal 
 Revenue Code of 1986.
        (B) Household member.--The term ``household member 
 of the taxpayer'' means the taxpayer, the taxpayer's 
 spouse, and any dependent of the taxpayer.
            (C) Threshold amount.--The term ``threshold 
 amount'' means--
            (i) $150,000 in the case of a taxpayer 
 filing a joint return, and
            (ii) $75,000 in the case of a taxpayer not 
 filing a joint return.

    (2) Phaseout of payments.--In the case of any taxpayer 
 whose modified adjusted gross income for the most recent 
 taxable year for which a return has been filed exceeds the 
 threshold amount, the amount of the carbon fee rebate payment 
 otherwise payable to any household member of the taxpayer under 
 this section shall be reduced (but not below zero) by a dollar 
 amount equal to 5 percent of such payment (as determined before 
 application of this paragraph) for each $1,000 (or fraction 
 thereof) by which the modified adjusted gross income of the 
 taxpayer exceeds the threshold amount.

    (e) Fee Treatment of Payments.--Amounts paid under this section 
shall not be includible in gross income for purposes of Federal income 
taxes.

    (f) Federal Programs and Federal Assisted Programs.--The carbon fee 
rebate payment received by any eligible individual shall not be taken 
into account as income and shall not be taken into account as resources 
for purposes of determining the eligibility of such individual or any 
other individual for benefits or assistance, or the amount or extent of 
benefits or assistance, under any Federal program or under any State or 
local program financed in whole or in part with Federal funds.

    (g) Disclosure of Return Information.--

Section 6103
            (l) of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new paragraph:
 ``

    (23) Disclosure of return information relating to carbon 
 fee rebate payments.--
 ``
        (A) Department of treasury.--Return information 
 with respect to any taxpayer shall, without written 
 request, be open to inspection by or disclosure to 
 officers and employees of the Department of the 
 Treasury whose official duties require such inspection 
 or disclosure for purposes of administering 

section 5 
 of the America's Clean Future Fund Act.
 ``
        (B) Restriction on disclosure.--Information 
 disclosed under this paragraph shall be disclosed only 
 for purposes of, and to the extent necessary in, 
 carrying out such section.''.

    (h) Regulations.--The Secretary shall prescribe such regulations, 
and other guidance, as may be necessary to carry out the purposes of 
this section, including--

    (1) establishment of rules for eligible individuals who 
 have not filed a recent tax return, and

    (2) in coordination with the Commissioner of Social 
 Security, the Secretary of Veterans Affairs, and any relevant 
 State agencies, establish methods to identify eligible 
 individuals and provide carbon fee rebate payments to such 
 individuals through appropriate means of distribution, 
 including through the use of electronic benefit transfer cards.
            (i) Public Awareness Campaign.--The Secretary shall conduct a 
public awareness campaign, in coordination with the Commissioner of 
Social Security, the heads of other relevant Federal agencies, and 
Indian Tribes (as defined in 

section 4 of the Indian Self-Determination 
and Education Assistance Act (25 U.S.C. 5304)), to provide information 
to the public regarding the availability of carbon fee rebate payments 
under this section.

    (j) Initial Appropriation.--For purposes of subsection
            (c) (2) , 
there is appropriated, out of any funds in the Treasury not otherwise 
appropriated, to remain available until expended--

    (1) for the fiscal year ending September 30, 2026, 
 $37,500,000,000, and

    (2) for the fiscal year ending September 30, 2027, 
 $37,500,000,000.

    (k) Termination.--This section shall not apply to any calendar 
quarter beginning after--

    (1) a determination by the Secretary under 

section 4692
            (d) (3)
        (B) of the Internal Revenue Code of 1986; or

    (2) any period of 8 consecutive calendar quarters for which 
 the amount of carbon fee rebate payment (without application of 
 subsection
            (d) ) during each such quarter is less than $20.

SEC. 6. AGRICULTURAL DECARBONIZATION TRANSITION PAYMENTS.

    (a) 

=== Purposes ===
-The purposes of this section are--

    (1) to provide transition assistance to eligible producers 
 in the agricultural sector to prepare for and facilitate entry 
 into greenhouse gas credit markets; and

    (2) to provide for the collection and reporting of data 
 under subsection
            (d) .

    (b) 

=== Definitions. ===
-In this section:

    (1) Eligible land.--The term ``eligible land'' means land 
 in the United States, including territories of the United 
 States and Indian land (as defined in 

section 2601 of the 
 Energy Policy Act of 1992 (25 U.S.C. 3501)), that has a 
 cropping or livestock history during each of the 3 years 
 preceding the date on which a payment is provided under the 
 program with respect to the land, as determined by the 
 Secretary.

    (2) Eligible producer.--The term ``eligible producer'' 
 means an individual or legal entity that--
        (A) is an owner, operator, or tenant of eligible 
 land; and
        (B) has the ability to enter into an agreement with 
 the Secretary to carry out qualifying actions described 
 in subsection
            (c) (2) under the program.

    (3) Greenhouse gas emissions reduction.--The term 
 ``greenhouse gas emissions reduction'' means the reduction in 
 greenhouse gas emissions as a result of the adoption of 
 qualifying actions described in subsection
            (c) (2) , as compared 
 to an historical baseline.

    (4) Program.--The term ``program'' means the program 
 established under subsection
            (c) (1) .

    (5) Secretary.--The term ``Secretary'' means the Secretary 
 of Agriculture.

    (6) Traditionally underserved.--The term ``traditionally 
 underserved'', with respect to an eligible producer, means that 
 the eligible producer--
        (A) has been socially or economically disadvantaged 
 by previous discriminatory laws or policies based on 
 race, ethnicity, or disability;
        (B) is new to agriculture, as determined by the 
 Secretary;
            (C) 
            (i) has served in the United States Armed 
 Forces; and
            (ii) 
            (I) has not operated an agriculture operation;
            (II) is new to agriculture, as determined by the 
 Secretary; or
            (III) first obtained veteran status during the 
 previous 5-year period;
            (D) is an owner, operator, or tenant of a limited 
 resource agriculture operation; or
        (E) has a household income not greater than the 
 national poverty level.
            (c) Establishment of Program.--

    (1) In general.--The Secretary shall establish a program to 
 provide payments to eligible producers that will assist with 
 reducing greenhouse gas emissions through the adoption of 
 qualifying actions described in paragraph

    (2) .

    (2) Qualifying actions.--
        (A) In general.--The Secretary shall determine 
 actions that qualify for payments under the program.
        (B) Requirements.--To be a qualifying action under 
 subparagraph
        (A) , an action shall be--
            (i) a climate-smart practice, including--
            (I) a practice determined by a 
 land-grant college or university (as 
 defined in 

section 1404 of the National 
 Agricultural Research, Extension, and 
 Teaching Policy Act of 1977 (7 U.S.C. 
 3103)); or
            (II) climate-smart energy 
 generation, fueling, or efficiency; and
            (ii) measurable, reportable, and verifiable 
 for reducing greenhouse gas emissions, as 
 determined by the Secretary.

    (3) Considerations.--In determining the rate and duration 
 of a payment under paragraph

    (1) , the Secretary shall 
 consider--
        (A) the degree of additionality of the greenhouse 
 gas emissions reduction;
        (B) whether the recipient of the payment was an 
 early adopter of 1 or more practices that reduce 
 greenhouse gas emissions;
            (C) the likelihood that the applicable qualifying 
 action described in paragraph

    (2) would have been 
 carried out absent the provision of the payment;
            (D) the degree of transitionality or permanence of 
 the greenhouse gas emissions reduction;
        (E) whether the applicable qualifying action 
 described in paragraph

    (2) provides multiple 
 environmental and health co-benefits in addition to 
 reduced greenhouse gas emissions;
        (F) the degree to which the recipient of the 
 payment is a traditionally underserved eligible 
 producer;
        (G) the integration with and enhancement of 
 payments and policies of similar Federal, State, or 
 local programs; and
        (H) any payments received, or to be received, by 
 the applicable eligible producer from a similar 
 Federal, State, or local program for applicable 
 qualifying actions described in paragraph

    (2) .

    (4) Ineligibility.--A person that is determined to be in 
 violation of any applicable water or air quality regulation, 
 including under the Federal Water Pollution Control Act (33 
 U.S.C. 1251 et seq.) (including regulations), shall not be 
 eligible for any payment under paragraph

    (1) during the period 
 of the violation.

    (5) Effectiveness.--The authority to provide payments under 
 this subsection shall be effective for each of the first 10 
 fiscal years beginning after September 30, 2026.
            (d) Collection of Data and Reporting.--

    (1) Measurement system.--The Secretary shall use an 
 outcomes-based measurement system that uses the best available 
 science and technology for cost-effective recordkeeping, 
 modeling, and measurement of farm-level greenhouse gas 
 emissions on eligible land enrolled in the program.

    (2) Inventory.--
        (A) In general.--For the purposes of providing 
 payments under the program, the Secretary shall conduct 
 a nationwide soil health and agricultural greenhouse 
 gas emissions inventory that uses the best available 
 science and data to establish baselines and expected 
 average performance for soil carbon drawdown and 
 storage and greenhouse gas emissions reduction by 
 primary production type and production region.
        (B) Database.--The Secretary shall--
            (i) establish an accessible and 
 interoperable database for the inventory 
 established under subparagraph
        (A) using the 
 measurement system established under paragraph

    (1) ; and
            (ii) improve and update the database as new 
 data is collected, but not less frequently than 
 once every 2 years.

    (3) Criteria.--
        (A) In general.--The Secretary shall establish 
 criteria for payments under the program to inform 
 policy and markets established to promote greenhouse 
 gas emissions reductions.
        (B) Requirements.--The criteria established under 
 subparagraph
        (A) shall--
            (i) have a documented likelihood of 
 providing long-term net greenhouse gas 
 emissions reductions, according to the best 
 available science;
            (ii) be based in part on environmental 
 impact modeling of the changes of shifting from 
 baseline practices to new or improved 
 practices; and
            (iii) prevent, to the maximum extent 
 practicable, the degradation of other natural 
 resource or environmental conditions.

    (4) Measurement, reporting, monitoring, and verification 
 services.--
        (A) In general.--The Secretary--
            (i) shall provide services described in 
 subparagraph
        (B) to eligible producers 
 participating in the program; and
            (ii) may approve and provide oversight of 1 
 or more third-party agents to provide services 
 described in subparagraph
        (B) to eligible 
 producers participating in the program.
        (B) Services described.--Services referred to in 
 subparagraph
        (A) are determining the greenhouse gas 
 emissions reduction by--
            (i) measurement;
            (ii) reporting;
            (iii) monitoring; and
            (iv) verification.
            (C) Use of protocols.--Services referred to in 
 subparagraph
        (A) shall be provided using--
            (i) the measurement system described in 
 paragraph

    (1) ; and
            (ii) the criteria described in paragraph

    (3) .
            (D) Privacy and data security.--
            (i) In general.--The Secretary shall 
 establish--
            (I) safeguards to protect the 
 privacy of information that is 
 submitted through or retained by a 
 third-party agent approved under 
 subparagraph
        (A) , including employees 
 and contractors of the third-party 
 agent; and
            (II) such other rules and standards 
 of data security as the Secretary 
 determines to be appropriate to carry 
 out this subsection.
            (ii) Penalties.--The Secretary shall 
 establish penalties for any violations of 
 privacy or confidentiality under clause
            (i) .
        (E) Disclosure of information.--
            (i) Public disclosure.--Information 
 collected for purposes of services provided 
 under subparagraph
        (A) may be disclosed to the 
 public--
            (I) if the information is 
 transformed into a statistical or 
 aggregate form such that the 
 information does not include any 
 identifiable or personal information of 
 individual producers; or
            (II) in a form that may include 
 identifiable or personal information of 
 a producer only if that producer 
 consents to the disclosure of the 
 information.
            (ii) Research, audit, and program 
 improvement.--Information collected for the 
 purposes of services provided under 
 subparagraph
        (A) may be disclosed for the 
 purposes of providing technical assistance, 
 including audit, research, or improvement of a 
 program under this section, either in aggregate 
 or in a form that includes identifiable or 
 personal information of a producer, if the 
 Secretary obtains adequate assurances that--
            (I) the recipient shall ensure 
 privacy safeguards of identifiable or 
 personal information of a producer; and
            (II) the release of any data to the 
 public will only occur only if the data 
 has been transformed into a statistical 
 or aggregate form.

    (e) Regulations.--Not later than July 1, 2026, the Secretary shall 
promulgate regulations to carry out this section, including--

    (1) the amount of a payment under subsection
            (c) , which 
 shall be based on--
        (A) the quantity of CO<INF>2</INF>-e reduced; and
        (B) the considerations described in subsection
            (c) (3) ;

    (2) a methodology that any third-party agents approved 
 under subsection
            (d) (4)
        (A)
            (ii) shall use to provide the 
 services under that subsection, including--
        (A) an accreditation process; and
        (B) a conflict of interest policy; and

    (3) provisions for the ownership and transportability of 
 data, including historical data, generated by an eligible 
 producer for the purpose of determining eligibility for 
 payments under the program.

SEC. 7. TRANSITION ASSISTANCE FOR IMPACTED COMMUNITIES.

    (a) 

=== Definitions. ===
-In this section:

    (1) Indian tribe.--The term ``Indian Tribe'' has the 
 meaning given the term in 

section 4 of the Indian Self-
 Determination and Education Assistance Act (25 U.S.C. 5304).

    (2) Individual with a barrier to employment.--The term 
 ``individual with a barrier to employment'' has the meaning 
 given the term in 

section 3 of the Workforce Innovation and 
 Opportunity Act (29 U.S.C. 3102).

    (3) Institution of higher education.--The term 
 ``institution of higher education'' has the meaning given the 
 term in 

section 101 of the Higher Education Act of 1965 (20 
 U.S.C. 1001).

    (4) Local board.--The term ``local board'' has the meaning 
 given the term in 

section 3 of the Workforce Innovation and 
 Opportunity Act (29 U.S.C. 3102).

    (5) Recognized postsecondary credential.--The term 
 ``recognized postsecondary credential'' has the meaning given 
 the term in 

section 3 of the Workforce Innovation and 
 Opportunity Act (29 U.S.C. 3102).

    (6) Secretary.--The term ``Secretary'' means the Secretary 
 of Commerce, acting through the Assistant Secretary of Commerce 
 for Economic Development.

    (7) State.--The term ``State'' means--
        (A) a State;
        (B) the District of Columbia;
            (C) the Commonwealth of Puerto Rico; and
            (D) any other territory or possession of the United 
 States.

    (8) State board.--The term ``State board'' has the meaning 
 given the term in 

section 3 of the Workforce Innovation and 
 Opportunity Act (29 U.S.C. 3102).

    (9) Supportive services.--The term ``supportive services'' 
 has the meaning given the term in 

section 3 of the Workforce 
 Innovation and Opportunity Act (29 U.S.C. 3102).

    (b) Grants.--The Secretary, in coordination with the Secretary of 
Labor, shall provide grants to eligible entities to assist in the 
transition to a low- or zero-greenhouse gas emitting economy.
            (c) Eligible Entities.--An entity eligible to receive a grant under 
this section is a labor organization, an institution of higher 
education, a unit of State or local government, an Indian Tribe, an 
economic development organization, a nonprofit organization, community-
based organization, or intermediary, or a State board or local board 
that serves or is located in a community that--

    (1) as determined by the Secretary, in coordination with 
 the Secretary of Labor, has been or will be impacted by 
 economic changes in carbon-intensive industries, including in 
 an energy community (as defined in 

section 45

    (b)

    (11) of the 
 Internal Revenue Code of 1986);

    (2) as determined by the Secretary, in consultation with 
 the Administrator of the Federal Emergency Management Agency, 
 has been or is at risk of being impacted by extreme weather 
 events, sea level rise, and natural disasters related to 
 climate change; or

    (3) as determined by the Secretary, in consultation with 
 the Administrator of the Environmental Protection Agency, has 
 been impacted by harmful residuals from a fossil fuel or 
 carbon-intensive industry.
            (d) Use of Funds.--An eligible entity that receives a grant under 
this section shall use the grant for--

    (1) economic and workforce development activities, such 
 as--
        (A) job creation;
        (B) providing reemployment and worker transition 
 assistance, including registered apprenticeships, 
 subsidized employment, job training, transitional jobs, 
 and supportive services, with priority given to--
            (i) workers impacted by changes in carbon-
 intensive industries;
            (ii) individuals with a barrier to 
 employment; and
            (iii) programs that lead to a recognized 
 postsecondary credential;
            (C) local and regional investment, including 
 commercial and industrial economic diversification;
            (D) export promotion; and
        (E) establishment of a monthly subsidy payment for 
 workers who retire early due to economic changes in 
 carbon-intensive industries;

    (2) climate change resiliency, such as--
        (A) building electrical, communications, utility, 
 transportation, and other infrastructure in flood-prone 
 areas above flood zone levels;
        (B) building flood and stormproofing measures in 
 flood-prone areas and erosion-prone areas;
            (C) increasing the resilience of a surface 
 transportation infrastructure asset to withstand 
 extreme weather events and climate change impacts;
            (D) improving stormwater infrastructure;
        (E) increasing the resilience of agriculture to 
 extreme weather;
        (F) ecological restoration;
        (G) increasing the resilience of forests to 
 wildfires;
        (H) increasing coastal resilience; and
            (I) implementing heat island cooling strategies;

    (3) environmental remediation and restoration projects of 
 fossil fuel industry facilities that are abandoned or retired, 
 or closed due to bankruptcy, and residuals from carbon-
 intensive industries, such as--
        (A) coal ash and petroleum coke cleanup;
        (B) mine reclamation;
            (C) reclamation and plugging of abandoned oil and 
 natural gas wells on private and public land; and
            (D) remediation of impaired waterways and drinking 
 water resources; or

    (4) other activities as the Secretary, in coordination with 
 the Secretary of Labor, the Administrator of the Federal 
 Emergency Management Agency, and the Administrator of the 
 Environmental Protection Agency, determines to be appropriate.

    (e) Requirements.--

    (1) Labor standards; nondiscrimination.--An eligible entity 
 that receives a grant under this section shall use the funds in 
 a manner consistent with sections 181 and 188 of the Workforce 
 Innovation and Opportunity Act (29 U.S.C. 3241, 3248).

    (2) Wage rate requirements.--
        (A) In general.--All laborers and mechanics 
 employed by eligible entities to carry out projects and 
 activities funded directly by or assisted in whole or 
 in part by a grant under this section shall be paid at 
 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 (commonly known as the ``Davis-Bacon Act'').
        (B) Authority.--With respect to the labor standards 
 specified in subparagraph
        (A) , the Secretary of Labor 
 shall have the authority and functions set forth in 
 Reorganization Plan No. 14 of 1950 (64 Stat. 1267; 5 
 U.S.C. App.) and 

section 3145 of title 40, United 
 States Code.

    (3) Buy america requirements.--
        (A) In general.--All iron, steel, and manufactured 
 goods used for projects and activities carried out with 
 a grant under this section shall be produced in the 
 United States.
        (B) Waiver.--The Secretary may waive the 
 requirement in subparagraph
        (A) if the Secretary finds 
 that--
            (i) enforcing the requirement would be 
 inconsistent with the public interest;
            (ii) the iron, steel, and manufactured 
 goods produced in the United States are not 
 produced in a sufficient and reasonably 
 available amount or are not of a satisfactory 
 quality; or
            (iii) enforcing the requirement will 
 increase the overall cost of the project or 
 activity by more than 25 percent.

    (f) Coordination.--An eligible entity that receives a grant under 
this section is encouraged to collaborate or partner with other 
eligible entities and impacted communities in planning and carrying out 
activities with that grant.

    (g) Report.--Not later than 3 years after the date on which the 
Secretary establishes the grant program under this section, the 
Secretary and the Secretary of Labor shall submit to Congress a report 
on the effectiveness of the grant program, including--

    (1) the number of individuals that have received 
 reemployment or worker transition assistance under this 
 section;

    (2) a description of any job creation activities carried 
 out with a grant under this section and the number of jobs 
 created from those activities;

    (3) the percentage of individuals that have received 
 reemployment or worker transition assistance under this section 
 who are, during the second and fourth quarters after exiting 
 the program--
        (A) in education or training activities; or
        (B) employed;

    (4) the average wages of individuals that have received 
 reemployment or worker transition assistance under this section 
 during the second and fourth quarters after exit from the 
 program;

    (5) a description of any regional investment activities 
 carried out with a grant under this section;

    (6) a description of any export promotion activities 
 carried out with a grant under this section, including--
        (A) a description of the products promoted; and
        (B) an analysis of any increase in exports as a 
 result of the promotion;

    (7) a description of any resilience activities carried out 
 with a grant under this section;

    (8) a description of any cleanup activities from fossil 
 fuel industry facilities or carbon-intensive industries carried 
 out with a grant under this section; and

    (9) the distribution of funding among geographic and 
 socioeconomic groups, including urban and rural communities, 
 low-income communities, communities of color, and Indian 
 Tribes.

    (h) Funding.--

    (1) Initial funding.--There is appropriated to the 
 Secretary, out of any funds in the Treasury not otherwise 
 appropriated, $5,000,000,000 for each of fiscal years 2026 and 
 2027 to carry out this section, to remain available until 
 expended.

    (2) America's clean future fund.--The Secretary shall carry 
 out this section using amounts made available from the 
 America's Clean Future Fund under 

section 9512 of the Internal 
 Revenue Code of 1986 (as added by 

section 4).

SEC. 8. STUDY ON CARBON PRICING.

    (a) In General.--Not later than January 1, 2029, the Administrator 
of the Environmental Protection Agency (referred to in this section as 
the ``Administrator'') shall seek to enter into an agreement with the 
National Academy of Sciences under which the National Academy of 
Sciences shall carry out a study not less frequently than once every 5 
years to evaluate the effectiveness of the fees established under 
sections 4692 and 4693 of the Internal Revenue Code of 1986 in 
achieving the following goals:

    (1) A net reduction of greenhouse gas emissions by 45 
 percent, based on 2018 levels, by 2030.

    (2) A net reduction of greenhouse gas emissions by 100 
 percent, based on 2018 levels, by 2050.

    (b) Requirements.--In executing the agreement under subsection

    (a) , 
the Administrator shall ensure that, in carrying out a study under that 
subsection, the National Academy of Sciences--

    (1) includes an evaluation of--
        (A) total annual greenhouse gas emissions by the 
 United States, including greenhouse gas emissions not 
 subject to the fees described in that subsection;
        (B) the historic trends in the total greenhouse gas 
 emissions evaluated under subparagraph
        (A) ; and
            (C) the impacts of the fees established under 
 sections 4692 and 4693 of the Internal Revenue Code of 
 1986 on changes in the levels of fossil fuel-related 
 localized air pollutants in environmental justice 
 communities (as defined in 

section 2

    (e)

    (1) );

    (2) analyzes the extent to which greenhouse gas emissions 
 have been or would be reduced as a result of current and 
 potential future policies, including--
        (A) a projection of greenhouse gas emissions 
 reductions that would result if the regulations of the 
 Administrator were to be adjusted to impose stricter 
 limits on greenhouse gas emissions than the goals 
 described in that subsection, with a particular focus 
 on greenhouse gas emissions not subject to the fees 
 described in that subsection;
        (B) the status of greenhouse gas emissions 
 reductions that result from the fees established under 
 sections 4692 and 4693 of the Internal Revenue Code of 
 1986;
            (C) a projection of greenhouse gas emissions 
 reductions that would result if the fees established 
 under those sections were annually increased--
            (i) at the current price path; and
            (ii) above the current price path;
            (D) an analysis of greenhouse gas emissions 
 reductions that result from the policies of States, 
 units of local government, Tribal communities, and the 
 private sector; and
        (E) the status and projections of decarbonization 
 in other major economies; and

    (3) submits a report to the Administrator, Congress, and 
 the Board of Directors of the Climate Change Finance 
 Corporation describing the results of the study.

SEC. 9. ESTABLISHMENT OF TARGETS FOR CARBON SEQUESTRATION BY LAND AND 
 WATER.

    (a) In General.--The Chair of the Council on Environmental Quality, 
in consultation with the Secretaries of Agriculture, Commerce, and the 
Interior, the Chief of Engineers, and the Administrator of the 
Environmental Protection Agency, shall--

    (1) establish a target for carbon sequestration that can 
 reasonably be achieved through enhancing the ability of public 
 and private land and water to function as natural carbon sinks;

    (2) develop strategies for meeting that target; and

    (3) develop strategies to expand protections for ecosystems 
 that sequester carbon and provide resiliency benefits, such 
 as--
        (A) flood protection;
        (B) soil and beach retention;
            (C) erosion reduction;
            (D) biodiversity;
        (E) water purification; and
        (F) nutrient cycling.

    (b) Report.--As soon as practicable after the date of enactment of 
this Act, the Chair of the Council on Environmental Quality shall 
submit to Congress a report describing--

    (1) the target and strategies described in paragraphs

    (1) through

    (3) of subsection

    (a) ; and

    (2) any additional statutory authorities or authorized 
 funding levels needed to successfully implement those 
 strategies.
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