,i #aafth ,,congress #b;d ,session ,h4 ,r4 #hecj ,,in ,,the ,,house ,,of ,,representatives ,october #f1 #bjbj,mr4 ,carbajal 7for himself and ,mr4 ,lowenthal7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to provide for energy opportunity zones4 #a4 ,short title ,this ,act may be cited as the ,energy ,opportunity ,zones ,act of #bjbj4 #b4 ,opportunity zones 7a7 ,in general ,chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting before subchapter ,z the following new subchapter3 ,y ,energy ,opportunity ,zones ,sec4 #adjj,y-#a4 ,energy opportunity zones4 #adjj,y-#a4 ,energy opportunity zones 7a7 ,production tax credit ,in the case of a qualified energy opportunity zone facility1 section #de shall be administered as if-- 7#a7 subsection 7b77#e7 did not apply1 7#b7 #bjej were substituted for #bjba in subsection 7d77#a71 and 7#c7 #bjej were substituted for #bjba each place such date appears in paragraphs 7#b77;,a71 7#c77;,a77i71 7#d77;,b71 7#f71 7#g71 7#i71 and 7#aa77;,b7 of subsection 7d74 7b7 ,investment tax credit ,in the case of qualified energy opportunity zone property1 section #dh shall be administered as if-- 7#a7 #bjej were substituted for #bjbb in paragraphs 7#b77;,a77i77,,ii71 7#c77;,a77ii71 and 7#c77;,a77vii7 of subsection 7a71 7#b7 #bjej were substituted for #bjba in subsection 7a77#e77;,c77ii71 7#c7 paragraphs 7#e77;,e71 7#f71 and 7#g7 of subsection 7a7 did not apply1 7#d7 paragraphs 7#a77;,d7 and 7#b77;,d7 of subsection 7c7 did not apply1 7#e7 #bjej were substituted for #bjbb in subsection 7c77#c77;,a77iv71 and 7#f7 subsection 7c77#d77;,c7 did not apply4 7c7 ,definitions ,for purposes of this section-- 7#a7 ,qualified energy opportunity zone facility ,the term qualified energy opportunity zone facility means any facility which is located within an energy opportunity zone and the construction of which was subject to a project labor agreement4 7#b7 ,qualified energy opportunity zone property ,the term qualified energy opportunity zone property means any property if-- 7,a7 such property is located within an energy opportunity zone1 7,b7 the construction of such property was subject to a project labor agreement1 and 7,c7 all laborers and mechanics employed by any contractor or subcontractor in the construction of such property were paid wages at rates not less than those prevailing on similar construction in the locality as determined by the ,secretary of ,labor under subchapter ,,iv of chapter #ca of title #dj1 ,united ,states ,code 7commonly referred to as the 8,davis-,bacon ,act074 7#c7 ,energy opportunity zone defined ,the term energy opportunity zone means-- 7,a7 any area which is within #abj miles of-- 7i7 a nuclear power plant1 or a facility which utilizes coal to generate electricity1 which 7after the date which is #aj years before the date of the enactment of this section7 ceases operation1 or 7ii7 a nuclear power plant which is scheduled to cease operation not later than #f years after the date of the enactment of this section1 and 7,b7 any other area that can reasonably demonstrate how changes in the nuclear or coal economy have resulted 7or are anticipated to result7 in job losses in such area4 7#d7 ,project labor agreement ,the term project labor agreement means a pre-hire collective bargaining agreement with one or more labor organizations that establishes the terms and conditions of employment for a specific construction project and which is an agreement described in section #h7;f7 of the ,national ,labor ,relations ,act 7#bf ,u4,s4,c4 #aeh7;f774 4 7b7 ,clerical amendment ,the table of subchapters for chapter #a of such ,code is amended by inserting before the item relating to subchapter ,z the following new item3 ,subchapter ,y--,energy ,opportunity ,zones 4 7c7 ,effective date 7#a7 ,in general ,except as provided in paragraph 7#b71 the amendments made by this section shall apply to property placed in service after the date of the enactment of this ,act4 7#b7 ,application of progress expenditure rules ,so much of the amendments made by this section as relate to section #dh of the ,internal ,revenue ,code of #aihf shall apply to periods after the date of the enactment of this ,act under rules similar to the rules of section #dh7m7 of the ,internal ,revenue ,code of #aihf 7as in effect on the day before the date of the enactment of the ,revenue ,reconciliation ,act of #aiij74 #c4 ,energy credit for qualified offshore wind facilities and energy storage 7a7 ,in general ,section #dh of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 in subsection 7a7-- 7,a7 in paragraph 7#b77;,a77i7-- 7i7 in subclause 7,,ii71 by striking paragraph 7#c77;,a77i7 and inserting clause 7i7 or 7ix7 of paragraph 7#c77;,a71 and 7ii7 by striking and at the end of subclause 7,,iii71 and 7iii7 by adding at the end the following new subclause3 7,v7 qualified offshore wind property1 and 1 and 7,b7 in paragraph 7#c77;,a7-- 7i7 in clause 7vi71 by striking or at the end1 and 7ii7 by adding at the end the following new clause3 7viii7 qualified offshore wind property1 but only with respect to property the construction of which begins before ,january #a1 #bjej1 or 7ix7 any equipment if-- 7,i7 such equipment receives1 stores1 and delivers energy using batteries1 compressed air1 pumped hydropower1 hydrogen storage 7including hydrolysis71 thermal energy storage1 regenerative fuel cells1 flywheels1 capacitors1 superconducting magnets1 or other technologies identified by the ,secretary in consultation with the ,secretary of ,energy1 7,,ii7 such equipment has a capacity of not less than #e megawatt hours1 7,,iii7 such equipment is located in an energy opportunity zone 7as defined in section #adjj,y-#a71 7,,iv7 the construction of such equipment was subject to a project labor agreement 7as defined in section #adjj,y-#a71 and 7,v7 all laborers and mechanics employed by any contractor or subcontractor in the construction of such equipment were paid wages at rates not less than those prevailing on similar construction in the locality as determined by the ,secretary of ,labor under subchapter ,,iv of chapter #ca of title #dj1 ,united ,states ,code 7commonly referred to as the 8,davis-,bacon ,act074 1 and 7#b7 in subsection 7c71 by adding at the end the following new paragraph3 7#e7 ,qualified offshore wind property 7,a7 ,in general ,the term qualified offshore wind property means an offshore facility1 other than qualified small wind energy property1 if-- 7i7 such facility uses wind to produce electricity1 7ii7 such facility is located not farther than #ej miles from the boundary of an energy opportunity zone 7as defined in section #adjj,y-#a71 7iii7 the construction of such facility was subject to a project labor agreement 7as defined in section #adjj,y-#a71 and 7iv7 all laborers and mechanics employed by any contractor or subcontractor in the construction of such facility were paid wages at rates not less than those prevailing on similar construction in the locality as determined by the ,secretary of ,labor under subchapter ,,iv of chapter #ca of title #dj1 ,united ,states ,code 7commonly referred to as the 8,davis-,bacon ,act074 7,b7 ,offshore facility ,the term offshore facility means any facility located in the inland navigable waters of the ,united ,states1 including the ,great ,lakes1 or in the coastal waters of the ,united ,states1 including the territorial seas of the ,united ,states1 the exclusive economic zone of the ,united ,states1 and the outer ,continental ,shelf of the ,united ,states4 4 7b7 ,effective date ,the amendments made by this section shall apply to periods after the date of the enactment of this ,act under rules similar to the rules of section #dh7m7 of the ,internal ,revenue ,code of #aihf 7as in effect on the day before the date of the enactment of the ,revenue ,reconciliation ,act of #aiij74 #d4 ,improvements to credit for nonbusiness energy property 7a7 ,extension of credit 7#a7 ,in general ,section #be;,c7g77#b7 of the ,internal ,revenue ,code of #aihf is amended by striking ,december #ca1 #bjbj and inserting ,december #ca1 #bjej4 7#b7 ,effective date ,the amendments made by this subsection shall apply to property placed in service after ,december #ca1 #bjbj4 7b7 ,other improvements 7#a7 ,in general ,section #be;,c of the ,internal ,revenue ,code of #aihf is amended-- 7,a7 in subsection 7a77#a71 by striking #aj percent and inserting #ae percent1 7,b7 in subsection 7b7-- 7i7 in paragraph 7#a7-- 7,i7 by striking #ejj and inserting #a1bjj1 and 7,,ii7 by striking ,december #ca1 #bjje and inserting ,december #ca1 #bjai1 and 7ii7 by striking paragraphs 7#b7 and 7#c7 and inserting the following3 7#b7 ,limitation on insulation material or system ,in the case of amounts paid or incurred for components described in subsection 7c77#c77;,a7 by any taxpayer for any taxable year1 the credit allowed under this section with respect to such amounts for such year shall not exceed the excess 7if any7 of #fjj over the aggregate credits allowed under this section with respect to such amounts for all prior taxable years ending after ,december #ca1 #bjai4 7#c7 ,limitation on windows 7,a7 ,in general 7i7 ,energy ,star ,most efficient ,in the case of amounts paid or incurred by any taxpayer for any taxable year for components described in subsection 7c77#c77;,b7 which meet the most efficient certification under applicable ,energy ,star program requirements1 the credit allowed under this section with respect to such amounts for such year shall not exceed the excess 7if any7 of #fjj over the aggregate credits allowed under this section with respect to such amounts for all prior taxable years ending after ,december #ca1 #bjai4 7ii7 ,energy ,star ,in the case of amounts paid or incurred by any taxpayer for any taxable year for components described in subsection 7c77#c77;,b7 which do not meet the most efficient certification under applicable ,energy ,star program requirements1 the credit allowed under this section with respect to such amounts for such year shall not exceed the excess 7if any7 of #bjj over the aggregate credits allowed under this section with respect to such amounts for all prior taxable years ending after ,december #ca1 #bjai4 7,b7 ,election 7i7 ,in general ,for purposes of any amounts paid or incurred by any taxpayer for components described in subsection 7c77#c77;,b71 the credit allowed under this section shall only be allowed for components described in clause 7i7 of subparagraph 7,a7 or clause 7ii7 of such subparagraph1 but not both1 as elected by the taxpayer during the first taxable year in which such credit is being claimed by the taxpayer4 7ii7 ,irrevocability ,the ,secretary shall1 through such rules1 regulations1 and procedures as are determined appropriate1 establish procedures for making an election under this subparagraph1 which shall require that-- 7,i7 any election made by the taxpayer shall be irrevocable1 and 7,,ii7 such election shall remain in effect for all subsequent taxable years4 7#d7 ,limitation on doors ,in the case of amounts paid or incurred for components described in subsection 7c77#c77;,c7 by any taxpayer for any taxable year1 the credit allowed under this section with respect to such amounts for such year shall not exceed-- 7,a7 the excess 7if any7 of #ejj over the aggregate credits allowed under this section with respect to such amounts for all prior taxable years ending after ,december #ca1 #bjai1 or 7,b7 #bej for each exterior door4 7#e7 ,limitation on residential energy property expenditures ,the amount of the credit allowed under this section by reason of subsection 7a77#b7 shall not exceed-- 7,a7 in the case of any energy-efficient building property-- 7i7 for any item of property described in subparagraph 7,a71 7,b71 or 7,c7 of subsection 7d77#c71 #fjj1 and 7ii7 for any item of property described in subparagraph 7,d7 or 7,e7 of such subsection1 #djj1 and 7,b7 in the case of any qualified natural gas1 propane1 or oil furnace or hot water boiler 7as defined in subsection 7d77#d771 an amount equal to-- 7i7 #fjj for a hot water boiler1 and 7ii7 in the case of a furnace1 an amount equal to the sum of-- 7,i7 #cjj1 plus 7,,ii7 if the taxpayer is converting from a non-condensing furnace to a condensing furnace1 #cjj4 1 7,c7 in subsection 7c7-- 7i7 in paragraph 7#b7-- 7,i7 by striking subparagraphs 7,a7 and 7,b7 and inserting the following3 7,a7 applicable ,energy ,star program requirements1 in the case of an exterior window1 a skylight1 or an exterior door1 and 1 7,,ii7 by redesignating subparagraph 7,c7 as subparagraph 7,b71 and 7,,iii7 in subparagraph 7,b71 as so redesignated1 by striking #bjji ,international and all that follows through ,act of #bjji and inserting #bjae ,,iecc 7as defined in section #de,l7b77#e771 7ii7 in paragraph 7#c7-- 7,i7 in subparagraph 7,b71 by adding and at the end1 7,,ii7 in subparagraph 7,c71 by striking 1 and and inserting a period1 and 7,,iii7 by striking subparagraph 7,d71 and 7iii7 by adding at the end the following new paragraph3 7#e7 ,labor costs ,the term qualified energy efficiency improvements includes expenditures for labor costs properly allocable to the onsite preparation1 assembly1 or original installation of any energy efficient building envelope component4 1 7,d7 in subsection 7d7-- 7i7 in paragraph 7#b77;,a7-- 7,i7 in clause 7i71 by adding or at the end1 7,,ii7 in clause 7ii71 by striking 1 or and inserting a period1 and 7,,iii7 by striking clause 7iii71 7ii7 in paragraph 7#c7-- 7,i7 by striking subparagraph 7,a7 and inserting the following3 7,a7 an electric heat pump water heater which1 in the standard ,department of ,energy test procedure1 yields a uniform energy factor of at least #c4j1 1 7,,ii7 in subparagraph 7,b71 by striking ,january #a1 #bjji and inserting the date of enactment of the ,home ,energy ,savings ,act1 7,,iii7 in subparagraph 7,c71 by striking ,january #a1 #bjji and inserting the date of enactment of the ,home ,energy ,savings ,act1 7,,iv7 by striking subparagraph 7,d7 and inserting the following3 7,d7 a natural gas1 propane1 or oil water heater which1 in the standard ,department of ,energy test procedure1 yields-- 7i7 in the case of a storage tank water heater-- 7,i7 in the case of a medium-draw water heater1 a uniform energy factor of not less than #j4gh1 and 7,,ii7 in the case of a high-draw water heater1 a uniform energy factor of not less than #j4hj1 and 7ii7 in the case of a tankless water heater-- 7,i7 in the case of a medium-draw water heater1 a uniform energy factor of not less than #j4hg1 and 7,,ii7 in the case of a high-draw water heater1 a uniform energy factor of not less than #j4ij1 and 1 and 7,v7 in subparagraph 7,e71 by striking of at least #ge percent and inserting the following3 7as determined pursuant to the applicable list published by the ,environmental ,protection ,agency for certified wood stoves1 hydronic heaters1 or forced-air furnaces7 of at least-- 7i7 in the case of any stove placed in service before ,january #a1 #bjba1 #gc percent1 and 7ii7 in the case of any stove placed in service after ,december #ca1 #bjbj1 #ge percent4 1 7iii7 in paragraph 7#d71 by striking not less than #ie and inserting the following3 not less than-- 7,a7 in the case of a furnace1 #ig percent1 and 7,b7 in the case of a hot water boiler1 #ie percent4 1 7iv7 by striking paragraph 7#e71 and 7v7 by redesignating paragraph 7#f7 as paragraph 7#e71 and 7,e7 in subsection 7e71 by adding the following new paragraphs at the end3 7#d7 ,installation standards ,the terms energy efficient building envelope component and qualified energy property shall not include any components or property which are not installed according to any applicable ,air ,conditioning ,contractors of ,america ,quality ,installation standards which are in effect at the time that such components or property are placed in service4 7#e7 ,replacement of terminated standards ,in the case of any standard1 requirement1 or criteria applicable to any energy efficient building envelope component or qualified energy property which is terminated after the date of enactment of the ,home ,energy ,savings ,act1 the ,secretary1 in consultation with the ,secretary of ,energy1 shall identify a similar standard1 requirement1 or criteria for purposes of determining the eligibility of any such component or property for purposes of credit allowed under this section4 4 7#b7 ,effective date ,the amendments made by this subsection shall apply to property placed in service after ,december #ca1 #bjai4 7c7 ,periodic report to ,congress regarding improved standards ,not later than #e years after the date of the enactment of this ,act 7and each #e years thereafter until the termination of the credit determined under section #be;,c of the ,internal ,revenue ,code of #aihf71 the ,secretary of ,energy1 after consultation with the ,secretary of ,treasury1 shall submit a written report to ,congress evaluating the effectiveness of such credit4 ,such report shall include-- 7#a7 an evaluation of each standard used under such section in determining the eligibility of property for credit under such section including whether relevant higher industry standards have been developed1 and 7#b7 recommendations 7if any7 for higher standards which would supplement or replace such current standards and an analysis of how such higher standards would be expected to improve the effectiveness of such credit4 #e4 ,improvements to new energy efficient home credit 7a7 ,extension of credit 7#a7 ,in general ,section #de,l7g7 of the ,internal ,revenue ,code of #aihf is amended by striking ,december #ca1 #bjbj and inserting ,december #ca1 #bjej4 7#b7 ,effective date ,the amendments made by this subsection shall apply to qualified new energy efficient homes acquired after ,december #ca1 #bjbj4 7b7 ,updating new energy efficient home credit 7#a7 ,in general ,section #de,l of the ,internal ,revenue ,code of #aihf is amended-- 7,a7 in subsection 7a77#b7-- 7i7 in subparagraph 7,a71 by striking #b1jjj and inserting #b1ejj2 and 7ii7 in subparagraph 7,b71 by inserting or 7#d7 after paragraph 7#c72 7,b7 in subsection 7b7-- 7i7 in paragraph 7#b77;,b71 by striking this section and inserting the ,new ,home ,energy ,efficiency ,act2 and 7ii7 by adding at the end the following3 7#e7 #bjah ,,iecc 7,a7 ,in general ,the term #bjah ,,iecc means the #bjah ,international ,energy ,conservation ,code1 as such ,code 7including supplements7 is in effect on the date of the enactment of the ,new ,home ,energy ,efficiency ,act4 7,b7 ,special rule ,for purposes of subsection 7c77#a77;,b77i77,i71 in determining whether a dwelling unit has been constructed in accordance with the standards of chapter #d of the #bjah ,,iecc by achieving a level of energy efficiency which meets ,section ,r#djf4d 7,n#aajf4d7 of such ,code1 such determination shall be made without accounting for on-site energy generation4 2 and 7,c7 by striking subsection 7c7 and inserting the following3 7c7 ,energy saving requirements ,a dwelling unit meets the energy saving requirements of this subsection if such unit-- 7#a7 7,a7 is certified-- 7i7 to have a level of annual heating and cooling energy consumption which is at least #fj percent below the annual level of heating and cooling energy consumption of a comparable dwelling unit-- 7,i7 which is constructed in accordance with the standards of chapter #d of the #bjjf ,international ,energy ,conservation ,code1 as such ,code 7including supplements7 is in effect on ,january #a1 #bjjf1 and 7,,ii7 for which the heating and cooling equipment efficiencies correspond to the minimum allowed under the regulations established by the ,department of ,energy pursuant to the ,national ,appliance ,energy ,conservation ,act of #aihg and in effect at the time of completion of construction1 and 7ii7 to have building envelope component improvements account for at least #a_/e of such #fj percent1 or 7,b7 is certified-- 7i7 to have a level of annual energy consumption which is at least #ae percent below the annual level of energy consumption of a comparable dwelling unit-- 7,i7 which is constructed in accordance with the standards of chapter #d of the #bjah ,,iecc1 and 7,,ii7 which meets the requirements described in subparagraph 7,a77i77,,ii71 and 7ii7 to have building envelope component improvements account for at least #a_/e of such #ae percent1 7#b7 is a manufactured home which-- 7,a7 conforms to ,federal ,manufactured ,home ,construction and ,safety ,standards 7part #cbhj of title #bd1 ,code of ,federal ,regulations71 and 7,b7 meets the requirements described in subparagraph 7,a7 or 7,b7 of paragraph 7#a71 7#c7 meets the requirements established by the ,administrator of the ,environmental ,protection ,agency under the ,energy ,star ,labeled ,homes program1 or 7#d7 is a manufactured home which-- 7,a7 conforms to the standards described in paragraph 7#b77;,a71 and 7,b7 meets the requirements described in paragraph 7#c74 4 7#b7 ,effective date ,the amendments made by this subsection shall apply to qualified new energy efficient homes acquired after ,december #ca1 #bjbj4 7c7 ,periodic report to ,congress regarding improved standards ,not later than #e years after the date of the enactment of this ,act 7and each #e years thereafter until the termination of the credit determined under section #de,l of the ,internal ,revenue ,code of #aihf71 the ,secretary of ,energy1 after consultation with the ,secretary of ,treasury1 shall submit a written report to ,congress evaluating the effectiveness of such credit4 ,such report shall include-- 7#a7 an evaluation of each standard used under such section in determining the eligibility of property for credit under such section including whether relevant higher industry standards have been developed1 and 7#b7 recommendations 7if any7 for higher standards which would supplement or replace such current standards and an analysis of how such higher standards would be expected to improve the effectiveness of such credit4 #f4 ,extension energy efficient commercial buildings deduction 7a7 ,in general ,section #agi;,d7h7 of the ,internal ,revenue ,code of #aihf is amended by striking ,december #ca1 #bjbj and inserting ,december #ca1 #bjej4 7b7 ,effective date ,the amendment made by this section shall apply to property placed in service after ,december #ca1 #bjbj4