S. 4183 — Introduced in Senate

II 117th CONGRESS 2d Session S. 4183 IN THE SENATE OF THE UNITED STATES May 11 (legislative day, May 10), 2022Mr. Bennet introduced the following bill; which was read twice and referred to the Committee on the Judiciary A BILL To establish the National Energy Transition Endowment and Community Revitalization Corporation, and for other purposes. 1. Short title This Act may be cited as the National Energy Community Transition Act of 2022. 2. Definitions In this Act: (1) Average ending balance The term average ending balance, with respect to an account in the Endowment, means— (A) for the first fiscal year during which the Endowment is in operation, the actual ending balance of the account; (B) for the second fiscal year during which the Endowment is in operation, the average of the fiscal year ending balances of the account for that fiscal year and the preceding fiscal year; (C) for the third fiscal year during which the Endowment is in operation, the average of the fiscal year ending balances of the account for the 2-preceding-fiscal-year period; and (D) for the fourth fiscal year during which the Endowment is in operation, and for each fiscal year thereafter, the average of the fiscal year ending balances of the account for the 3-preceding-fiscal-year period. (2) Board The term Board means the Board of Directors of the Corporation. (3) Community development financial institution The term community development financial institution has the meaning given the term in section 103 of the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4702). (4) Corporation The term Corporation means the Community Revitalization Corporation established by section 3(a). (5) Eligible community The term eligible community means— (A) a community experiencing or likely to experience an economic or workforce transition relating to changes in applicable— (i) fossil fuel electricity generation; or (ii) fossil fuel extraction, development, or demand; and (B) a community experiencing or likely to experience a decline in fossil fuel-related revenue. (6) Endowment The term Endowment means the National Energy Transition Endowment Fund established by section 4(a)(1). (7) Energy community hub The term energy community hub means a place-based organization (including a nonprofit entity, community development financial institution, regional economic development authority, or other community-based organization, as determined to be appropriate by the Corporation) that— (A) facilitates economic and community development in an eligible community; and (B) provides necessary capacity and experience to implement a transition program for 1 or more eligible communities. (8) Transition program The term transition program means a program described in section 5(a)(2) or paragraph (3) or (4) of section 5(b). 3. Establishment of the community revitalization corporation (a) In general There is established a federally chartered, nonprofit corporation, to be known as the Community Revitalization Corporation. (b) Status and applicable laws (1) Non-Federal entity The Corporation is not a department, agency, or instrumentality of the United States Government. (2) Liability The United States Government shall not be liable for the actions or inactions of the Corporation. (3) Nonprofit corporation The Corporation shall have and maintain the status of the Corporation as a nonprofit corporation exempt from taxation under the Internal Revenue Code of 1986. (c) Board of directors (1) Authority The powers of the Corporation shall be vested in a Board of Directors that governs the Corporation. (2) Membership (A) In general The Board shall be composed of not fewer than 7 but not more than 11 members, who shall be appointed by the President, not later than 90 days after the date of enactment of this Act, by and with the advice and consent of the Senate. (B) Qualifications of members (i) In general Subject to clauses (ii) and (iii), in making appointments under subparagraph (A), the President shall ensure that the membership of the Board— (I) includes— (aa) members from eligible communities; (bb) members with relevant economic development experiences with— (AA) eligible communities; (BB) underserved rural communities in economic distress; and (CC) underrepresented minority communities, such as indigenous communities, Tribal communities, or communities of color; and (cc) members representing a recognized State labor organization or central labor council or other labor representatives, as appropriate; and (II) has not more than a 1-member majority from any political party. (ii) Prohibition A member of the Board shall not hold an office, position, or employment in any political party. (iii) Initial members The President shall ensure that the initial membership of the Board includes a representative of each of the Northern Rocky Mountain region, the Four Corners region, the Mid-Continental Gulf Coast region, the Illinois Basin region, the Appalachian region, and the Alaska region, as described in the report prepared by the Interagency Working Group on Coal and Power Plant Communities and Economic Revitalization entitled Initial Report to the President on Empowering Workers Through Revitalizing Energy Communities and dated April 2021. (C) Terms (i) In general A member of the Board shall be appointed for a term of 4 years, except that the President shall designate staggered terms for the members first appointed to the Board. (ii) Reappointment A member of the Board may be reappointed to serve an additional term, subject to the condition that the member may serve for not more than 2 consecutive terms. (D) Vacancies (i) In general A vacancy on the Board shall be— (I) filled in the manner in which the original appointment was made; and (II) subject to any conditions that applied with respect to the original appointment. (ii) Filling unexpired term An individual chosen to fill a vacancy shall be appointed for the unexpired term of the member replaced. (E) Expiration of terms Any member of the Board may continue to serve after the expiration of the term for which the member was appointed until a qualified successor has been appointed. (3) Chairperson (A) In general The Chairperson of the Board shall be selected from among the members of the Board by a majority vote of the members. (B) Term of service The Chairperson of the Board— (i) shall serve for a term of not longer than 4 years; and (ii) may be reelected to serve an additional term, subject to the condition that the Chairperson may serve for not more than 2 consecutive terms. (4) Consultation To the maximum extent practicable, in carrying out the duties of the Corporation under subsection (d)(3), the Board shall engage regional economic development entities and energy community hubs to solicit and consider input and feedback relating to decisions impacting the 1 or more regions the entity represents. (d) Bylaws and duties (1) In general The Board shall adopt, and may amend, the bylaws of the Corporation. (2) Bylaws The bylaws of the Corporation shall include, at a minimum— (A) the duties and responsibilities of the Board; and (B) the operational procedures of the Corporation. (3) Duties and responsibilities of board The Board shall be responsible for actions of the Corporation, including— (A) hiring staff to carry out the functions of the Corporation; (B) entering into contracts with fund management and investment professionals to manage the Endowment; (C) making formula payments under section 5(a)(2); (D) making grants in accordance with section 5(b)(3); (E) monitoring Federal and State policies relevant to rural and transitioning communities; (F) coordinating (including through entering into contracts), as appropriate, with relevant agencies, institutions, energy community hubs, and other entities that provide economic, training, and capacity assistance to eligible communities consistent with the duties under subparagraphs (C), (D), (H), and (I); (G) creating and maintaining accessible electronic materials targeted towards eligible communities, including up-to-date, user-friendly information on— (i) the programs and activities carried out by the Corporation; and (ii) other relevant Federal programs that provide economic assistance to eligible communities or other similar transitioning communities; (H) making public investments in accordance with section 5(b)(4); and (I) monitoring, assessing, and reporting on outcomes of— (i) any financial assistance provided under a transition program; and (ii) any public investment made under section 5(b)(4). (4) Chief Executive Officer The Board shall select and hire a Chief Executive Officer, who shall report directly to the Board. 4. Establishment of endowment and investment strategy (a) Endowment fund (1) In general There is established within the Corporation an endowment, to be known as the National Energy Transition Endowment Fund, consisting of— (A) amounts deposited in the Endowment under paragraph (3) and subsection (b)(3)(B); (B) income from investments of amounts in the Endowment under paragraph (4); and (C) amounts transferred to the Endowment under subsection (c). (2) Accounts Within the Endowment, there are established the following accounts: (A) The Transitioning Communities Permanent Account, consisting of the amounts described in subparagraphs (A) and (B) of paragraph (1). (B) The Transitioning Communities Benefit Account, consisting of the amounts described in paragraph (1)(C). (3) Deposit Not later than 180 days after the date of enactment of this Act, the Secretary of the Treasury shall deposit in the Endowment, out of amounts in the Treasury not otherwise appropriated, $20,000,000,000. (4) Investments In accordance with the investment strategy developed under subsection (b)(1), the Board shall invest the principal balance of the Endowment. (b) Investments (1) In general Not later than 180 days after the date of enactment of this Act, the Board shall establish an investment strategy for amounts in the Endowment that— (A) protects the principal balance of the Endowment from inflation through such measures as the Board determines to be necessary to maintain in perpetuity the inflation-adjusted value of all deposits into the Endowment under subparagraphs (A) and (C) of subsection (a)(1); and (B) to the maximum extent practicable, achieves a return on investment of 5 percent (net of inflation) to finance— (i) disbursements to eligible entities under section 5(a)(2); and (ii) the administration of the Corporation under paragraph (3)(A). (2) Investment of principal balance Of the principal balance of the Endowment, the Board shall invest— (A) an amount equal to not less than 85 percent, and not more than 90 percent, in a diversified portfolio of stocks and bonds; and (B) an amount equal to not less than 10 percent, and not more than 15 percent, in investments that leverage the purposes of disbursements from the Endowment authorized under section 5. (3) Administrative funds (A) In general For each fiscal year, the Board may disburse to the Corporation from the Transitioning Communities Permanent Account, for the administrative expenses of the Corporation, not more than the amount equal to the product obtained by multiplying— (i) the average ending balance of the Transitioning Communities Permanent Account with respect to that fiscal year; and (ii) 0.5 percent. (B) Excess funds If the amount of the actual administrative expenses of the Corporation for a fiscal year is less than the amount disbursed to the Corporation for the fiscal year under subparagraph (A), an amount equal to the difference between those amounts shall be deposited in the Endowment. (c) Transfers to endowment from energy and natural resources leasing Each fiscal year, the Secretary of the Treasury shall transfer to the Endowment an amount equal to 33 percent of amounts in the Treasury received from fossil fuel extraction and production leasing and renewable energy resource leasing on Federal land for that fiscal year and not otherwise obligated. (d) Reports The Corporation shall submit to Congress, and make available to the public (including any eligible entities that receive financial assistance under a transition program)— (1) a quarterly report on Endowment investment outcomes; and (2) an annual report describing disbursements from the Endowment, including how amounts were allocated under the transition programs. (e) Oversight Annually, the Inspectors General of the Department of the Interior and the Department of the Treasury shall conduct a review of the management of the Endowment by the Corporation. 5. Disbursements from Endowment (a) Transitioning Communities Permanent Account (1) Availability of amounts Not later than September 30 of each fiscal year, in accordance with paragraph (2), the Board shall make available from the Transitioning Communities Permanent Account an amount equal to the product obtained by multiplying— (A) the average ending balance of the Transitioning Communities Permanent Account with respect to that fiscal year; and (B) 4.5 percent. (2) Formula distribution (A) Definition of eligible entity In this paragraph, the term eligible entity means a municipal, county, or Tribal government that represents an eligible community. (B) Allocation The Corporation shall allocate the amount made available from the Transitioning Communities Permanent Account under paragraph (1) each fiscal year to eligible entities pursuant to subparagraph (C). (C) Formula (i) In general The Corporation shall establish a formula to allocate amounts made available from the Transitioning Communities Permanent Account each fiscal year under subparagraph (B) directly to eligible entities. (ii) Requirement To the maximum extent practicable, in establishing the formula under clause (i), the Corporation shall use as a model existing formulas established by the Treasury, if available and as applicable. (D) Review and public comment (i) In general The Board shall review the formula established under subparagraph (C) not less frequently than once every 3 years. (ii) Public comment The results of the review conducted under clause (i), including any recommended changes to the formula made by the Board, shall be subject to a period of public comment of not less than 30 days. (E) Formula criteria The formula established under subparagraph (C) or modified under subparagraph (D) shall— (i) be designed to reflect eligible communities; and (ii) take into account revenue declines that— (I) have occurred during the 20-year period ending on, as applicable— (aa) the date of enactment of this Act; or (bb) the date of the applicable review under subparagraph (D)(i); and (II) are projected to occur during the 10-year period beginning on, as applicable— (aa) the date of enactment of this Act; or (bb) the date of the applicable review under subparagraph (D)(i). (F) Priority (i) Definition of officially announced closure In this subparagraph, the term officially announced closure means— (I) in the case of the closure of a fossil fuel energy-generating unit or facility, a notice of closure filed with— (aa) the Energy Information Administration; or (bb) a relevant regional reliability regulator, including a Regional Transmission Organization, Independent System Operator, or State public utility commission; and (II) in the case of the closure of a coal mine that provides coal for an electric power plant for which a notice of closure has been filed under subclause (I), a notice of closure that includes supporting documentation from form 923 of the Energy Information Administration (or a successor form). (ii) Priority In establishing the formula under subparagraph (C), the Corporation shall prioritize eligible entities located in eligible communities experiencing or likely to experience an acute fiscal crisis associated with the loss of revenue resulting from— (I) the closure or officially announced closure of 1 or more fossil fuel energy-generating units or facilities; or (II) the decline or cessation of fossil fuel extraction activities. (G) Considerations In establishing the formula under subparagraph (C), the Corporation shall consider community characteristics, including social and economic measures of income, poverty, education, geographic isolation, and other characteristics identified by the Corporation. (H) Use of funds An eligible entity may use amounts received under this paragraph for any governmental purpose. (b) Transitioning Communities Permanent Account (1) Availability of amounts Not later than September 30 of each fiscal year, in accordance with paragraphs (2) through (4), the Board shall make available from the Transitioning Communities Benefit Account an amount equal to the product obtained by multiplying— (A) the average ending balance of the Transitioning Communities Benefit Account with respect to that fiscal year; and (B) 4.5 percent. (2) Allocation The Corporation shall allocate the amount made available from the Transitioning Communities Benefit Account under paragraph (1) each fiscal year— (A) to provide grants to eligible entities pursuant to the transition program described in paragraph (3); and (B) for public investment pursuant to the transition program described in paragraph (4). (3) Capacity building; planning and implementation grants (A) Definition of eligible entity In this paragraph, the term eligible entity includes— (i) a municipal, county, or Tribal government; (ii) an energy community hub; and (iii) any other entity that represents eligible communities, as determined to be appropriate by the Corporation. (B) Priority; limitation (i) Priority Priority for grants under this paragraph shall be given to eligible entities carrying out activities in eligible communities that have limited capacity to apply for or otherwise access Federal funding, as determined by the Corporation. (ii) Limitation In the case of an eligible entity described in clause (ii) or (iii) of subparagraph (A), a grant under this paragraph may only be provided to the eligible entity if the applicable municipal, county, or Tribal government submits to the Corporation, in writing, a statement that the applicable municipal, county, or Tribal government supports the grant for the eligible entity. (C) Training and technical assistance Each fiscal year, out of amounts made available from the Transitioning Communities Benefit Account under paragraph (2)(A), the Corporation shall provide to eligible entities technical assistance to apply for or otherwise access Federal funding, including capacity-building grants under subparagraph (D) and planning and implementation grants under subparagraph (E). (D) Capacity-building grants Each fiscal year, out of amounts made available from the Transitioning Communities Benefit Account under paragraph (2)(A), the Corporation shall make noncompetitive capacity-building grants to each eligible entity to assist with developing strategic transition plans necessary to receive additional competitive grants and financing opportunities. (E) Planning and implementation grants (i) Grants Each fiscal year, out of amounts made available from the Transitioning Communities Benefit Account under paragraph (2)(A), the Corporation shall make competitive, multiyear grants to eligible entities to fund— (I) strategic transition planning activities in eligible communities; (II) the implementation of transition plans in eligible communities; and (III) transition projects in eligible communities, including workforce retraining and community development projects. (ii) Strategy for data collection, monitoring, and reporting In carrying out this subparagraph, the Corporation shall develop a strategy to assist eligible entities receiving grants under this subparagraph with any applicable data collection, monitoring, and reporting requirements. (iii) Assessment by Corporation To ensure transparency and improve the transfer and understanding of transition planning and implementation outcomes, the Corporation shall compile, conduct assessments of, and report on data provided by eligible entities provided grants under this subparagraph, in accordance with section 3(d)(3)(I). (4) Public investment (A) In general Each fiscal year, out of amounts made available from the Transitioning Communities Benefit Account under paragraph (2)(B), the Corporation shall make public investments in public or private projects carried out in eligible communities that leverage transition programs funded under paragraph (3). (B) Consultation The Corporation may carry out subparagraph (A) in consultation with the staff of the Corporation, community development financial institutions, public benefit corporations, entities that provide philanthropic funding, energy community hubs, and other partners to invest capital in businesses and infrastructure in eligible communities. (C) Requirement for return on investment To the maximum extent practicable, the Corporation shall ensure that the entire portfolio of transition investments under subparagraph (A) contributes to a return to the Endowment that achieves the target described in section 4(b)(1)(B).