July 30, 2022

Amendment in the Nature of a Substitute to H.R.5376 – Build Back Better Act

NOTEWORTHY

Bill Status: Democrats’ fiscal year 2022 budget resolution contained $1.75 trillion in reconciliation instructions to 13 House and 12 Senate committees. The substitute amendment to H.R.5376, which the Democrats are calling the Inflation Reduction Act, would enact their reckless tax and spend spree. H.R.5376 passed the House by a vote of 220-213 on November 19. The Senate may consider the bill on the floor in August.

Overview of the Issue: A budget reconciliation bill is a privileged piece of legislation. The motion to proceed is not debatable and requires only a simple majority. The Budget Act provides for 20 hours of debate on reconciliation bills, equally divided. Once all debate time has been used or yielded back, senators may continue to offer further amendments. No debate is in order, but roll call votes can be taken in a “vote-a-rama.” Amendments must be germane, but non-germane amendments can be considered if they overcome a 60-vote point of order. Provisions that can be placed in a reconciliation bill are limited by the Byrd Rule, under which there is a 60-vote point of order against extraneous provisions in a reconciliation bill.

Executive Summary: Democrats’ partisan reckless tax and spend spree would raise taxes in a recession, exacerbate the Biden inflation spiral, and kill jobs.

  1. Increases costs for domestic energy production as Americans are suffering through record gas prices.

  2. Hikes taxes by more than $326 billion as the economy has suffered from two consecutive quarters of negative GDP growth – what everyone but the Biden administration calls a recession.

  3. Hands out tax breaks to wealthy Americans.

  4. Implements draconian price controls on pharmaceuticals that would stifle science and lead to fewer treatments and cures.

  5. Spends $370 billion to jam through Democrats’ radical Green New Deal climate agenda. 

NOTABLE BILL PROVISIONS

TITLE I: Committee on Finance

Subtitle A: Deficit Reduction

Part 1: Corporate Tax Reforms

  1. For tax years beginning after 2022, imposes a 15% minimum tax on financial statement income of corporations that have annual average adjusted financial statement – or “book” – income exceeding $1 billion over a three-year period. 

  2. The 15% rate applies to a company’s financial statement income after certain adjustments, and allowing certain tax credits to be taken into account for purposes of the book minimum tax liability.  The provision allows companies to take general business credits, such as the credits for research and development, energy, and low-income housing. 

  3. However, there are no adjustments for cost recovery, including accelerated depreciation and depletion, or for deductions related to employee stock ownership. As a result, companies that invest in capital assets, like machinery and equipment, may be penalized under the book minimum tax. 

  4. The book minimum tax is not the same as the global minimum tax. The book minimum tax primarily applies to companies’ U.S. earnings, while the global minimum tax is a tax on companies’ foreign earnings. This provision does not modify the global intangible low-taxed income minimum tax.

Part 2: Closing the Carried Interest Loophole

  1. Increases the holding period for long-term capital gains treatment on gains attributable to a carried interest from three years to five years; taxes the initial transfer of a carried interest as ordinary income.

Part 3: Funding the Internal Revenue Service and Improving Taxpayer Compliance

  1. Provides more than $79 billion in mandatory additional long-term appropriations to the IRS and related agencies to increase tax          enforcement and fund various items, including $45.6 billion for enforcement; $25.3 billion for operations; $3.2 billion for taxpayer services; $4.8 billion for business systems modernization; $15 million to fund a report to Congress on the IRS developing a government-run “free” e-file tax return system; and nearly $105 million to the Treasury Department Office of Tax Policy to write unspecified regulations. Requires the IRS, after receiving the increased appropriations, to submit a plan to Congress on how the funds will be spent. Also provides additional funding to the treasury inspector general, U.S. Tax Court, and Treasury Departmental Offices. Includes language with an unenforceable stipulation that “nothing in this subsection is intended to increase taxes on any taxpayer with a taxable income below $400,000.”

  2. Provides the secretary of the treasury with direct hire authority and other federal hiring flexibilities.

Subtitle B: Drug Pricing

  1. The legislation would create a Drug Price Negotiation Program, under which the secretary of health and human services   would select a set of drugs each year – a maximum of 10 for the first year of negotiation, 15 for the second and third years, and 20 for each subsequent year – to subject to the program’s price-setting scheme. “Negotiated” prices would be capped based on declining ceilings, with no floor available for most drugs selected, with a limited, short-term exception for certain medications produced by small biotechs.

    1. “Negotiations” for the first cohort of medicines would begin in 2023, with the resulting prices slated to take effect for plan year 2026; the program would create two-year cycles. The legislation would require manufacturers to offer the resulting “maximum fair prices” across Medicare Parts B and D.

    2. For manufacturers out of compliance with the bill’s timelines or requirements, the legislation would exact a penalty on gross sales across all markets, beginning at 65% and rising to 95%. 

    3. Price increases in excess of ordinary inflation would be prohibited for selected drugs, and failure to offer MFPs to eligible purchasers would result in steep civil monetary penalties.

    4. Ties mandatory price ceilings under the new program to the non-federal average manufacturer price for selected products: 75% of the non-federal AMP for products on the market less than 12 years; 65% for drugs on the market at least 12 but less than 16 years; and 40% for medications on the market 16 or more years. It would link Medicare-mandated prices to a benchmark used to calculate the ceiling for price negotiations undertaken by the veterans affairs secretary.

    5. Under the legislation, stakeholders would have no recourse to redress grievances, even in the event of administrative malfeasance in implementing the program, since the proposal bars judicial and administrative review with respect to the selection of drugs for the price-setting program, the determination of mandated prices, and a range of other core components of the new system.

    6. Beginning in 2023, and as early as October 2022 for retail drugs, the bill would impose sweeping price controls on both physician-administered drugs and retail prescription drugs across virtually all markets, requiring manufacturers to either limit product price increases to at or below the rate of general inflation, benchmarked retroactively from 2021 levels, or else to pay penalties.

    7. Restructures the standard benefit design of Medicare Part D to shift liabilities and cap   beneficiary out-of-pocket costs at $2,000 per year.

    8. Beginning in 2027, repeals the Trump administration’s Rebate Rule, which aimed to bar post-sale rebates paid by manufacturers to Part D plans and to promote point-of-sale discounts.

Subtitle C: Affordable Care Act Subsidies

  1. Extends through 2025 the expanded subsidies for Obamacare plans first enacted “temporarily” in the American Rescue plan. This expansion has no income limitations on who can receive premium subsidies, increases the subsidy amount for those already eligible, and provides subsidies that cover 100% of premium costs for people with incomes from 100% to 150% of the federal poverty level.

Subtitle D: Energy Security

Part 1: Clean Electricity and Reducing Carbon Emissions

  1. Extends the Section 45 production tax credit for certain renewable resources through 2024. Reduces the Section 45 base credit amount substantially, but provides enhanced credit   rates for facilities that meet prevailing wage and apprenticeship requirements, use domestically produced steel, iron, or manufactured products, or are located in an energy community. Energy communities are census tracts in which a coal mine has closed after 1999 or a coal-fired electric generating unit has been retired after 2009.
  2. Generally extends the Section 48 energy investment tax credit through 2024. Expands credit eligibility to include energy storage technology, biogas property, microgrid controllers, electrochromic glass, and linear generators. Reduces the Section 48 base credit rate substantially but provides enhanced credit rates for facilities that meet prevailing wage and apprenticeship requirements, domestic content requirements, or are located in an energy community.

  3. Creates a bonus energy investment credit for solar and wind facilities located in low-income communities.

  4. Extends and modifies the credit for Section 45Q carbon oxide sequestration facilities through 2031; changes capture requirements and base credit rates for qualified facilities; and provides an enhanced credit for facilities that meet prevailing wage and apprenticeship requirements.

  5. Creates a production tax credit for nuclear power facilities, available through 2032, and provides an enhanced credit for facilities that meet prevailing wage and apprenticeship requirements.

Part 2: Clean Fuels

  1. Extends the biodiesel, renewable diesel, and alternative fuel tax incentives through 2024, and the income tax credit for second-generation biofuels through 2025.

  2. Creates a tax credit for sustainable aviation fuels, available through 2024.

  3. Creates a production credit for clean hydrogen, available to facilities that begin construction before 2032, and provides an enhanced credit for facilities that meet prevailing wage and apprenticeship requirements.

Part 3: Clean Energy and Efficiency Incentives for Individuals

  1. Modifies the Section 25C credit for nonbusiness energy property and extends it through 2032.

  2. Extends the Section 25D credit for residential energy efficient property through 2034.

  3. Modifies the Section 179D deduction for energy-efficient commercial buildings to have a much lower maximum amount of deduction, but provides an enhanced credit for certain commercial properties that meet prevailing wage and apprenticeship requirements during construction.

  4. Modifies and extends the Section 45L credit for new energy-efficient homes through 2032, and provides an enhanced credit for multifamily facilities that meet prevailing wage requirements during construction.

Part 4: Clean Vehicles

  1. Modifies the plug-in vehicle credit to a “clean” vehicle credit. Changes to the current credit include: eliminating the 200,000 vehicle per manufacturer cap on sales of eligible vehicles; increasing the base credit from $2,500 to $3,750; requires vehicles to be produced with an increasing share of domestically sourced critical minerals and battery components; and requires “final assembly” of vehicles to be in North America. Joint filers earning up to $300,000, heads of households earning $225,000, or single filer earning up to $150,000 may claim the full credit of up to $7,500 for qualifying vehicles costing up to $80,000. Credit is available after 2022.  

  2. Creates new credit for used clean vehicles, available to single filers earning up to $75,000 and joint filers earning up to $150,000.

  3. Creates a new credit for clean commercial electric vehicles, available through 2032.

  4. Extends and modifies the credit for alternative fuel refueling property through 2032, with enhanced credits for refueling property that meets certain prevailing wage and apprenticeship requirements.

Part 5: Investment in Clean Energy Manufacturing and Energy Security

  1. Expands and modifies 30% credit for advanced energy projects through 2031. Provides $10 billion in credit authority, of which $4 billion is set aside for energy communities. Lowers the base credit rate substantially, but provides an increased credit rate for facilities    that meet prevailing wage and apprenticeship requirements.

  2. Creates an advanced manufacturing production credit for the manufacture of certain renewable energy generation components, battery components, and critical minerals in the U.S., with increased credit rates for facilities that meet prevailing wage and apprenticeship requirements, and domestic content requirements.

Part 6: Superfund

  1. Reinstates the Superfund excise tax on domestic crude oil and imported petroleum products at a rate of 16.4 cents per gallon through 2032, beginning 2023. For years beginning after 2023, adjusts the rate for inflation.  Reinstates ability to borrow a certain amount of anticipated Superfund excise taxes from the Treasury.

Part 7: Incentives for Clean Electricity and Clean Transportation

  1. Beginning in 2025, provides new, emissions-based clean energy production credit and clean energy investment credit, based on facilities’ carbon emissions. Facilities must be U.S.- or territory-based and have carbon emissions at or below zero to claim the credit. Quintuples the inflation-adjusted credit rate for facilities that meet certain prevailing wage and apprenticeship requirements, and domestic content requirements. Limited to 10 years of credits and has a phase-out provision that phases-out the credit for facilities constructed after the year the treasury secretary determines that domestic greenhouse gas emissions from the production of electricity are 25% or less of what they were in 2022.

  2. Creates an emissions-based clean fuel production credit, available after 2026, based on lifecycle carbon emissions of the fuel. Quintuples the credit rate for facilities that meet certain prevailing wage and apprenticeship requirements. Phases out the credit for facilities constructed after the year the treasury secretary determines that domestic greenhouse gas emissions from the production of electricity are 25% or less of what they were in 2022.

Part 8: Credit Monetization and Appropriations

  1. Allows taxpayers to elect to receive a direct payment of the credit in excess of tax liability – i.e., the credit is refundable and transferable.

Part 9: Other Provisions

  1. Extends the coal excise tax, which funds the Black Lung Disability Trust Fund, permanently.

  2. Doubles the current $250,000 limitation for the small businesses payroll tax research credit.

TITLE II—Committee on Agriculture, Nutrition, and Forestry

Subtitle B: Conservation

  1. $8.45 billion for the Environmental Quality Incentives program. Removes a set-aside, popular among farmers and ranchers, dedicated to livestock practices and extends until 2031 a set-aside for wildlife habitat, popular among environmental groups.

  2. $3.25 billion for the Conservation Stewardship program.

  3. $1.4 billion for the Agricultural Conservation Easement program, a land retirement program.

  4. $6.75 billion for the Regional Conservation Partnership program and allows the department to leverage corporate sustainability commitments.

  5. $1 billion for Natural Resources Conservation Service technical assistance.

  6. $300 million for NRCS to facilitate a new Carbon Sequestration and Greenhouse Gas Emissions Quantification Program to collect data from U.S. farms and ranches.

  7. Extends conservation programs to 2031; two farm bills from now.

Subtitle C: Rural Development

  1. $1 billion for the secretary to provide forgivable loans to utilities building renewable electricity generation projects.

  2. $1.2 billion for the Rural Energy for America Program, which includes $177 million for grants and guaranteed loans under the program to support “underutilized renewable energy technologies.”

  3. $500 million to support infrastructure grants for biofuels.

  4. $9.7 billion to facilitate grants to rural electric providers to deploy renewable energy systems or facilitate energy efficiency updates.

Subtitle D: Forestry

  1. Provides funding for forestry initiatives across the Department of Agriculture, including: $1.8 billion to reduce hazardous fuels on National Forest System lands in “wildland urban interface”; $200 million for NFS vegetation management; $100 million for USFS environmental reviews; $50 million for old-growth forests protection and restoration plans.     

  2. $150 million in competitive grants for climate mitigation or forest resilience projects for underserved forest landowners.

  3. $150 million in competitive grants to support the participation of underserved forest landowners in emerging private markets for climate mitigation.

  4. $100 million in competitive grants to support the participation of forest landowners who own less than 2,500 acres of forest land in emerging private markets for climate mitigation.

  5. $50 million in competitive grants to states or “other eligible entities” to provide payments to private forestland owners to increase carbon sequestration beyond customary practices.

  6. $100 million for grants under the Wood Innovation Grant Program.

  7. Provides funding for state and private forestry conservation programs: $700 million for grants under the Forest Legacy Program for the acquisition of land and interest in land, prioritizing projects with “significant natural carbon sequestration benefits or provide benefits to underserved populations”; $1.5 billion for competitive grants to support tree planting, prioritizing projects “that benefit underserved populations and areas” (i.e. “tree equity”).

TITLE III: Committee on Banking, Housing, and Urban Affairs 

  1. $500 million to the Defense Production Act Fund, which Democrats intend to use for their climate agenda.

  2. $1 billion for the Department of Housing and Urban Development to provide direct loans and grants to upgrade or retrofit affordable housing for energy and water efficiency and climate resilience.

TITLE IV: Committee on Commerce, Science, and Transportation

  1. $2.6 billion for the National Oceanic and Atmospheric Administration to support restoration projects in coastal areas.

  2. $150 million for updating NOAA facilities.

  3. $50 million for NOAA to support National Marine Sanctuary facilities.

  4. $20 million for NOAA to carry out “efficient reviews and permitting.”

  5. $150 million for NOAA research on weather and climate forecasting.

  6. $50 million for NOAA climate research specific to impacts on marine species and coastal habitats.

  7. $190 million for NOAA to support computing capacity and research.

  8. $100 million for NOAA to procure aircraft for forecasting hurricanes.

  9. $297 million for the secretary of transportation for grants to advance technology to mitigate aviation emissions and support sustainable aviation fuels that would mitigate emissions.

TITLE V: Committee on Energy and Natural Resources

Subtitle A: Energy

  1. $4.3 billion for DOE to create a Home Owner Managing Energy Savings rebate program to facilitate grants to states.

  2. $4.5 billion for DOE to create a High-Efficiency Electric Home Rebate program to provide grants to states to incentivize homeowners and multifamily building owners performing electrification projects.

  3. $200 million for grants to train contractors involved in the installation of energy efficiency upgrades.

  4. $1 billion to fund grants for implementation of new building energy codes.

  5. $11.6 billion to fund over $315 billion in green loan guarantees.

    1. Authorizes the secretary of energy to make commitments and guarantee loans up to a total principal amount of $40 billion for projects to mitigate greenhouse gas emissions under Section 1703 of the Energy Policy act of 2005 and provides $3.6 billion in funding for the cost of guarantees, of which 10% (or $360 million) is reserved for administrative expense of the program.

    2. Appropriates $3 billion for the costs of providing direct loans under the Advanced Technology Vehicle Manufacturing Program, of which $25 million is reserved for the costs of administering the program. Also eliminates the cap of $25 billion on loans to be made under the program that was mandated by the Energy Independence and Security Act of 2007.

    3. Appropriates $5 billion to guarantee loans for projects under section 1706 of the Energy Policy Act of 2005, the total principal amount of which cannot exceed $250 billion for a new program of Energy Infrastructure Reinvestment Financing to “retool, repower, repurpose, or replace energy infrastructure that has ceased operations; or enable operating energy infrastructure to avoid, reduce, utilize, or sequester air pollutants or emissions of greenhouse gases.”

    4. Appropriates $2 billion to provide grants for domestic production of efficient hybrid, plug-in electric hybrid, plug-in electric drive, and hydrogen fuel cell electric vehicles under the Domestic Manufacturing Conversion Grant Program established by the Energy Policy Act of 2005.

    5. $75 million to carry out the Tribal Energy Loan Guarantee Program and raises the cap on the total amount of loans to be guaranteed under the program from $2 billion to $20 billion.

    6. $2 billion for DOE to support the updating or construction of transmission lines through grants and loans.

    7. $760 million to facilitate the siting of interstate electricity transmission lines by providing grants to state and local siting authorities for meetings, consultants and modeling equipment among other things.

    8. $100 million to aid efforts to advance offshore wind (and interregional transmission).

    9. $5.8 billion for DOE to create a program to update “advanced industrial technology.”

    10. $10 million for the DOE inspector general for oversight of initiatives funded under the bill.

    11. $40 million for the Energy Information Administration.

    12. Provides funding for DOE Office of Science: $133 million for science laboratory infrastructure projects; $303 million for high energy physics construction; $280 million for fusion energy science construction; $217 million for nuclear physics construction; $163 million for advance scientific computing research facilities; $294 million for basic energy sciences projects; $157 million for isotope research and development activities.

    13. $150 million for DOE Office of Nuclear Energy for infrastructure and general plant projects.

    14. $150 million for DOE Office of Energy Efficiency and Renewable Energy for infrastructure and general plant projects.

    15. $700 million for the Advanced Nuclear Fuel Availability Program to make high-assay, low-enriched uranium available to advanced reactors.

Subtitle B: Natural Resources

  1. $250 million for projects related to conservation, protection, and resiliency on National Park Service and Bureau of Land Management lands.

  2. $250 million for projects related to conservation and ecosystem and habitat restoration on NPS and BLM lands.

  3. $500 million for NPS to hire employees.

  4. $550 million for the Bureau of Reclamation to provide financial assistance to disadvantaged communities for water projects.

  5. $25 million for BOR to support projects to outfit water conveyance facilities with solar panels.

  6. $15 million for Insular Affairs to facilitate technical assistance related to climate change.

  7. Encourages offshore wind production on the outer continental shelf.

  8. Raises royalty rates for offshore oil and gas production from 12.5% to not less than 16.6% and not more than 18.75%. Requires that after 2032, minimum rates for offshore leasing be 16.6%. Raises royalty rates for onshore oil and gas production from 12.5% to 16.6%. Increases the current national minimum acceptable bid for oil and gas leases from $2 per acre to $10 per acre and requires the secretary of the interior to update rates based on inflation a minimum of once every four years.

  9. Requires a royalty on methane emissions stemming from oil and gas production on federal lands.

  10. Seeks to nullify the D.C. Circuit Court’s January ruling overturning offshore lease sales conducted by the department in November 2021.

  11. Seeks to require the secretary to hold an onshore oil and gas lease sale in order to issue a right-of-way for wind or solar development on federal lands.

  12. $23 million for United States Geological Survey’s 3D Elevation program.

  13. Provides funding to support environmental reviews: $125 million for DOE; $100 million for the Federal Energy Regulatory Commissions; and $150 million for the Department of the Interior.

TITLE VI: Committee on Environment and Public Works

Subtitle A: Air Pollution

  1. $1 billion for the Environmental Protection Agency to create a program to provide grants for state and local governments and other entities to procure new zero-emission heavy-duty vehicles for the replacement of older vehicles, $400 million of which is reserved for projects in areas designated as nonattainment areas under the Clean Air Act.

  2. $3 billion for EPA to create a program to issue grants to address port emissions, $750 million of which is reserved for projects in nonattainment areas.

  3. $27 billion for EPA to create a Greenhouse Gas Reduction Fund, also known as a “national climate bank” or “green bank,” to support projects advancing the use of zero-emission technologies, particularly in low-income and disadvantaged communities, through direct and indirect financial assistance. Earmarks $8 billion for low-income and disadvantaged communities.

  4. $60 million for EPA to provide grants for reducing diesel emissions related to movement of goods.

  5. Funds a range of initiatives under the Clean Air Act: $117.5 million for air-quality-related grants; $50 million for expand NAAQS monitoring network; $3 million for air sensors in low-income and disadvantaged communities; $15 million for addressing emissions from wood heaters; $20 million for methane monitoring; $45 million for directing EPA to develop and implement new greenhouse gas regulations under nine different sections of the Clean Air Act; and $5 million for grants to states to adopt California greenhouse regulations for mobile sources.

  6. $37.5 million for addressing air pollution and greenhouse gas emissions at schools located in low-income and disadvantaged communities.

  7. $87 million for several EPA initiatives to reduce greenhouse gas emissions associated with electricity, including $18 million directing EPA to establish new regulatory requirements on electricity generation and use to drive down greenhouse gas emissions.

  8. $5 million for funding new tests and protocols under the Renewable Fuel Standard of the Clean Air Act and $10 million to support investments in advanced biofuels.

  9. $38.5 million to fund implementation of the American Innovation and Manufacturing Act.

  10. $22 million for EPA to fund enforcement technology and information efforts.

  11. $5 million for EPA to “enhance transparency” on corporate reporting for voluntary greenhouse gas and climate commitments.

  12. $250 million for EPA to develop greenhouse gas disclosure requirements, also called product declarations, for construction materials and products.

  13. Requires EPA to impose a “methane waste emissions charge” on producers, processors, and distributors of petroleum and natural gas products and supporting infrastructure. Provides $850 million for EPA to provide assistance to producers and communities to monitor and mitigate methane emissions and support “environmental restoration.”

  14. $5 billion in Climate Pollution Reduction Grant funding for EPA to provide greenhouse gas air pollution planning grants and implementation grants to states, tribes, and other government entities.

  15. $40 million for EPA to support environmental reviews.

  16. $100 million for EPA to develop, in consultation with the Federal Highway Administration, identification and labeling requirements for “low-embodied carbon construction materials and products” used in transportation projects.

Subtitle B: Hazardous Materials

  1. $3 billion for EPA to facilitate grants to “community-led” initiatives to address environmental and climate justice in disadvantaged communities, including through the facilitation of engagement in state and federal public processes, such as for rulemakings.

Subtitle C: U.S. Fish and Wildlife Service

  1. $125 million for Fish and Wildlife Service’s Endangered Species Act recovery plans.

  2. $121.25 million for improvements to the National Wildlife Refuge System.

Subtitle D: Council on Environmental Quality

  1. $32.5 million for data collection at the Council on Environmental Quality.

  2. $30 million for CEQ for environmental reviews.

Subtitle E: Transportation and Infrastructure

  1. $1.9 billion for FHWA to issue grants for a range of “neighborhood access and equity” projects and activities, including for those that: remove infrastructure; mitigate “negative impacts on the human or natural environment” from a surface transportation facility; or support planning and capacity building in disadvantaged and underserved communities.

  2. $1.1 billion for FHWA to issue grants for “neighborhood access and equity” projects specifically in economically disadvantaged communities.

  3. $250 million for the Federal Buildings Fund to transition buildings to “high-performance green buildings.”

  4. $2.2 billion for the Federal Building Fund to procure low-embodied carbon materials and products for federal buildings projects.

  5. $975 million for Federal Building Fund for “emerging and sustainable technologies, and related sustainability and environmental programs.”

  6. $100 million for supporting environmental reviews.

  7. $125 million for alternative water source project grants.

  8. $2 billion for FHWA to reimburse for “low-embodied carbon construction materials and products” used in certain transportation projects.

TITLE VII: Committee on Homeland Security and Governmental Affairs

  1. $500 million for the Office of the Chief Readiness Officer to carry out sustainability and environmental programs.

  2. $3 billion for the Postal Service to purchase zero-emission delivery vehicles and zero-emission vehicle infrastructure.

  3. $15 million for the USPS Office of Inspector General.

  4. $25 million to the Government Accountability Office for oversight of the distribution of funds provided in the law and whether the economic, social, and environmental impacts of the funds provided in the law are equitable.

  5. $25 million to the Office of Management and Budget to oversee implementation of the law and to track labor, equity, and environmental standards and performance across the federal government.

  6. Allows FEMA to provide financial assistance for costs associated with low-carbon materials and incentives that encourage low-carbon and net-zero energy projects, which may include an increase in the federal cost share for those projects.

  7. $70 million for the Environmental Review Improvement Fund.

Title VIII: Committee on Indian Affairs

  1. $220 million for tribal climate resilience and adaptation programs at the Bureau of Indian Affairs.

  2. $10 million for Bureau of Indian Affairs fish hatchery operations and maintenance programs.

  3. $5 million for administrative costs to carry out these two programs.

  4. $23.5 million for the Office of Native Hawaiian Relations for climate resilience and adaptation activities that serve the Native Hawaiian community.

  5. $1.5 million for administrative costs to carry out the Native Hawaiian Resilience and Adaptation programs.

  6. $145.5 million for a zero emissions tribal home electrification program at the Bureau of Indian Affairs.

  7. $4.5 million for administrative costs to carry out the Tribal Electrification program.

  8. $12.5 million for the Bureau of Reclamation to take near-term drought relief actions to mitigate drought impacts for Indian tribes.

ADMINISTRATION POSITION

The administration has not yet released a SAP on the bill. President Biden released a statement on July 27, 2022, supporting the legislation.

COST

The Congressional Budget Office has not yet released a cost estimate for the legislation.