,,ii #aai? ,,congress #a/ ,session ,s4 #ahdb ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,may #ba1 #bjbe,mr4 ,:iteh\se 7= himself & ,mr4 ,s*iff7 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,f9ance ,a ,,bill ,to am5d ! ,int]nal ,rev5ue ,code ( #aihf to create a cr$it = c>bon removal & /orage = =e/ residues f wildfire managem5t4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,wildfire ,r$uction & ,c>bon ,removal ,act ( #bjbe4 #b4 ,cr$it = =e/ residue c>bon removal & /orage 7a7 ,9 g5]al ,subp>t ,d ( "p ,,iv ( sub*apt] ,a ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new section3 #de;,,bb4 ,=e/ residue c>bon removal & /orage 7a7 ,g5]al rule ,= purposes ( section #ch1 ! =e/ residue c>bon removal & /orage cr$it = any taxable ye> is an am\nt equal to ! applicable doll> am\nt p] metric ton ( qualifi$ c>bon dioxide equival5t :i* is-- 7#a7 captur$ by ! taxpay] f qualifi$ =e/ residue biomass us+ biomass equipm5t :i* 0 orig9ally plac$ 9 s]vice at a qualifi$ =e/ residue biomass c>bon removal & /orage project on or aft] ! date ( ! enactm5t ( ! ,wildfire ,r$uction & ,c>bon ,removal ,act ( #bjbe1 & 7#b7 /or$ by ! taxpay] 9 secure geological /orage or via long-duration utilization4 7b7 ,applicable doll> am\nt ,= purposes ( ?is section-- 7#a7 ,9 g5]al ,! applicable doll> am\nt is-- 7,a7 #cf1 9 ! case ( qualifi$ c>bon dioxide equival5t /or$ 9 secure geological /orage1 & 7,b7 #ab1 9 ! case ( qualifi$ c>bon dioxide equival5t /or$ via long-duration utilization4 7#b7 ,adju/m5t = inflation ,9 ! case ( any taxable ye> beg9n+ 9 a cal5d> ye> aft] #bjbf1 ! #cf & #ab am\nts "u p>agraph 7#a7 %all ea* be multipli$ by ! inflation adju/m5t factor det]m9$ "u section #dc7;b77#c77;,b7 = su* cal5d> ye>1 det]m9$ by sub/itut+ #bjbe = #aiij4 7#c7 ,increas$ cr$it am\nt = c]ta9 facilities 7,a7 ,9 g5]al ,9 ! case ( qualifi$ c>bon dioxide equival5t :i* is describ$ 9 subsection 7a77#a7 & :i* meets ! requirem5ts ( p>agraphs 7#c7 & 7#d7 ( section #de,q7h7 7det]m9$ aft] application ( ! modifications describ$ 9 subp>agraph 7,b771 ! am\nt applicable %all be equal to su* am\nt 7det]m9$ )\t reg>d to ?is p>agraph7 multipli$ by #e4 7,b7 ,modifications ,! modifications describ$ 9 ?is subp>agraph are z foll[s3 7i7 ,9 section #de,q7h77#c77;,a71 ! t]m qualifi$ =e/ residue biomass c>bon removal & /orage project %all be sub/itut$ = qualifi$ facility ea* place x appe>s1 & su* project %all be sub/itut$ = su* facility ea* place x appe>s4 7ii7 ,9 section #de,q7h77#c77;,a71 ! t]m biomass equipm5t %all be sub/itut$ = c>bon capture equipm5t 9 ! matt] be=e subp>agraph 7,a74 7iii7 ,9 section #de,q7h77#c77;,a77ii71 by disreg>d+ ! phrase = any portion ( su* taxable ye> :i* is )9 ! p]iod describ$ 9 p>agraph 7#c77;,a7 or 7#d77;,a7 ( subsection 7a74 7c7 ,in/allation ( additional biomass sy/em equipm5t at exi/+ project ,9 ! case ( a qualifi$ =e/ residue biomass c>bon removal & /orage project plac$ 9 s]vice be=e ! date ( ! enactm5t ( ! ,wildfire ,r$uction & ,c>bon ,removal ,act ( #bjbe at :i* additional biomass equipm5t is plac$ 9 s]vice on or aft] ! date ( ! enactm5t ( su* ,act1 ! am\nt ( captur$ qualifi$ c>bon dioxide equival5t tak5 into acc\nt = purposes ( subsection 7a7 is an am\nt 7n less ?an z]o7 equal to ! excess (-- 7#a7 ! total am\nt ( qualifi$ c>bon dioxide equival5t captur$ at su* project = ! taxable ye>1 ov] 7#b7 ! total am\nt ( ! c>bon dioxide equival5t capture capacity ( ! qualifi$ =e/ residue biomass project 9 s]vice at su* project on ! day be=e ! date ( ! enactm5t ( su* ,act4 7d7 ,qualifi$ c>bon dioxide equival5t ,= purposes ( ?is section1 ! t]m qualifi$ c>bon dioxide equival5t means ! net metric tons ( c>bon dioxide equival5t :i*-- 7#a7 is captur$ ?r\gh ! disposal or utilization ( ! c>bon embodi$ 9 qualifi$ =e/ residue biomass1 & 7#b7 is measur$ & v]ifi$ at ! po9t ( disposal or utilization bas$ on1 9 accordance ) ! rules ( subsection 7f7-- 7,a7 project-level lifecycle analysis ( gre5h\se gas emissions1 & 7,b7 project-level monitor+1 report+1 & v]ification4 7e7 ,qualifi$ =e/ residue biomass c>bon removal & /orage project ,= purposes ( ?is section-- 7#a7 ,9 g5]al 7,a7 ,9 g5]al ,! t]m qualifi$ =e/ residue biomass c>bon removal & /orage project means any project :i*-- 7i7 uses biomass equipm5t to /ore qualifi$ c>bon dioxide equival5t 9 secure geological /orage or via long-duration utilization1 & 7ii7 /ores n less ?an #a1jjj metric tons ( qualifi$ c>bon dioxide equival5t z describ$ 9 clause 7i7 dur+ ! taxable ye>4 7,b7 ,aggregation ( facilities ,! t]m qualifi$ =e/ residue biomass c>bon removal & /orage project may include multiple facilities :i* may be aggregat$ 9 ord] to meet ! requirem5t ( subp>agraph 7,a77ii74 7#b7 ,qualifi$ =e/ residue biomass ,! t]m qualifi$ =e/ residue biomass means =e/ residues f ! ?9n+ ( trees no great] ?an #h in*es 9 diamet] at brea/ height & o!r residues 7su* z limbs & b>k7 :i*-- 7,a7 meet su/a9ability /&>ds issu$ pursuant to section #b7;f7 ( ! ,wildfire ,r$uction & ,c>bon ,removal ,act ( #bjbe1 & 7,b7 are produc$ f wildfire haz>d r$uction or ecological re/oration activities id5tifi$-- 7i7 9 a f9al ,unit$ ,/ates ,=e/ ,s]vice ,l& ,managem5t ,plan or ,bureau ( ,l& ,managem5t ,res\rce ,managem5t ,plan1 or 7ii7 by ! ,unit$ ,/ates ,=e/ ,s]vice z occurr+ 9 fire%$s ) significant wildfire haz>d pot5tial & vegetation dep>ture4 7f7 ,o!r def9itions & special rules ,= purposes ( ?is section-- 7#a7 ,secure geological /orage ,c>bon dioxide equival5t %all be treat$ z /or$ 9 secure geological /orage only if su* c>bon dioxide equival5t is /or$ 9 su* wells or und]gr\nd /orage me*anisms1 includ+ injection ( bio-liquids or bio-solids or eng9e]$ burial ( biomass1 appropriate to ! type ( biomass c>bon removal z ! ,secret>y %all id5tify 9 consultation ) ! ,secret>y ( ,en]gy & ! ,adm9i/rator ( ! ,environm5tal ,protection ,ag5cy z hav+ demon/rat$ ! capability to /ore su* c>bon dioxide equival5t securely = at lea/ a #a1jjj-ye> p]iod4 7#b7 ,long-duration utilization ,c>bon dioxide equival5t %all be treat$ z /or$ via long-duration utilization if su* c>bon dioxide equival5t is /or$ 9 ! =m ( bio*>1 durable build+ mat]ials1 or o!r products :i* remove c>bon1 :i* are det]m9$ by ! ,secret>y 9 collaboration ) ! entities describ$ 9 p>agraph 7#a7 to h demon/rat$ ! capability to /ore su* c>bon dioxide equival5t securely = at lea/ a #ajj-ye> p]iod1 z calculat$ bas$ on a lifecycle analysis4 7#c7 ,biomass equipm5t ,! t]m biomass equipm5t means any equipm5t us$ at a qualifi$ =e/ residue biomass c>bon removal & /orage project to dispose ( qualifi$ =e/ residue biomass4 7#d7 ,cr$it n all[$ = enhanc$ recov]y op]ations ,no cr$it %all be all[$ "u subsection 7a7 ) respect to qualifi$ c>bon dioxide equival5t :i* is us$ by ! taxpay] z a t]ti>y injectant 9 an enhanc$ oil or natural gas recov]y project4 7#e7 ,coord9ation ) o!r cr$its 7,a7 ,9 g5]al ,no cr$it %all be all[$ "u ?is section ) respect to any qualify+ c>bon dioxide removal project = any taxable ye> = :i* a cr$it det]m9$ "u section #de,q or #dh;,c is all[$ = su* taxable ye>4 7,b7 ,special rule = qualifi$ c>bon dioxide removal projects integrat$ ) clean en]gy g5]ation 7i7 ,9 g5]al ,9 ! case ( any qualify+ c>bon dioxide removal project :i* produces electricity1 hydrog51 or fuel z an output ( its qualify+ c>bon dioxide removal approa*1 no cr$it %all be all[$ ) respect to ! production ( su* electricity1 hydrog51 or fuel "u section #dj;,b1 #de1 #de,v1 #de,y1 or #de,z unless su* electricity1 hydrog51 or fuel is consum$ by su* qualify+ c>bon dioxide removal project4 7ii7 ,en]gy cr$it & clean electricity inve/m5t cr$it ,9 ! case ( any qualify+ c>bon dioxide removal project :i* includes-- 7,i7 any en]gy prop]ty 7z def9$ 9 section #dh7;a77#c77 :i* produces electricity or hydrog5 f ! process ( c>bon dioxide removal1 or 7,,ii7 any qualifi$ facility 7z def9$ 9 section #dh;,e7b77#c77 :i* produces electricity or hydrog5 f ! process ( c>bon dioxide removal1 no cr$it %all be all[$ "u section #dh or #dh;,e ) respect to su* en]gy prop]ty or qualifi$ facility4 7#f7 ,only qualifi$ c>bon dioxide equival5t captur$ & dispos$ ( or us$ )9 ! ,unit$ ,/ates tak5 into acc\nt ,! cr$it "u ?is section %all apply only ) respect to qualifi$ c>bon dioxide equival5t ! capture & /orage or disposal ( :i* is )9-- 7,a7 ! ,unit$ ,/ates 7)9 ! mean+ ( section #fch7a771 or 7,b7 a possession ( ! ,unit$ ,/ates 7)9 ! mean+ ( section #fch7b774 7#g7 ,cr$it attributable to taxpay] 7,a7 ,9 g5]al ,except z provid$ 9 subp>agraph 7,b7 or 9 any regulations prescrib$ by ! ,secret>y1 any cr$it "u ?is section %all be attributable to ! p]son t owns ! biomass equipm5t & physically or contractually ensures ! capture & /orage or disposal ( ! qualifi$ c>bon dioxide equival5t4 7,b7 ,election ,if ! p]son describ$ 9 subp>agraph 7,a7 makes an election "u ?is subp>agraph 9 su* "t & mann] z ! ,secret>y may prescribe by regulations1 ! cr$it "u ?is section-- 7i7 %all be all[able to ! p]son t /ores or disposes ( ! qualifi$ c>bon dioxide equival5t1 & 7ii7 %all n be all[able to ! p]son describ$ 9 subp>agraph 7,a74 7#h7 ,recapture ,! ,secret>y %all1 by regulations1 provide = recaptur+ ! b5efit ( any cr$it all[able "u subsection 7a7 ) respect to any qualifi$ c>bon dioxide equival5t :i* ceases to be /or$ or dispos$ ( 9 a mann] consi/5t ) ! requirem5ts ( ?is section4 7#i7 ,cr$it r$uc$ = tax-exempt bonds ,rules simil> to ! rule "u section #de7;b77#c7 %all apply = purposes ( ?is section4 7g7 ,guidance ,n lat] ?an ,janu>y #a1 #bjbf1 ! ,secret>y %all issue guidance reg>d+ implem5tation ( ?is section1 includ+ /&>ds on qualifi$ =e/ residue biomass & det]m9ation ( net qualifi$ dioxide equival5t removals "u ?is section4 4 7b7 ,cr$it ,to be "p ( g5]al bus9ess cr$it ,subsection 7b7 ( section #ch ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ plus at ! end ( p>agraph 7#dj71 by /rik+ ! p]iod at ! end ( p>agraph 7#da7 & ins]t+ 1 plus1 & by add+ at ! end ! foll[+ new p>agraph3 7#db7 ! =e/ residue c>bon removal & /orage cr$it det]m9$ "u section #de;,,bb7a74 4 7c7 ,elective paym5t & transf] ( cr$it 7#a7 ,elective paym5t ,subsection 7b7 ( section #fdag ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#ac7 ,! =e/ residue c>bon removal & /orage cr$it det]m9$ "u section #de;,,bb7a74 4 7#b7 ,transf] ,section #fdah7;f77#a77;,a7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+3 7xii7 ,! =e/ residue c>bon removal & /orage cr$it det]m9$ "u section #de;,,bb7a74 4 7d7 ,cl]ical am5dm5t ,! table ( sections = subp>t ,d ( "p ,,iv ( sub*apt] ,a ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new item3 ,sec4 #de;,,bb4 ,=e/ residue c>bon removal & /orage4 4 7e7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjbe4 7f7 ,su/a9ability /&>ds rulemak+ & public comm5t p]iod 7#a7 ,rulemak+ au?ority ,! ,secret>y ( ! ,treasury1 9 consultation ) ! ,secret>y ( ,agriculture & ! ,secret>y ( ! ,int]ior1 %all issue regulations to e/abli% su/a9ability /&>ds = ! id5tification ( qualifi$ =e/ residue biomass = purposes ( ! =e/ residue c>bon removal & /orage tax cr$it e/abli%$ by ?is section4 ,su* regulations %all-- 7,a7 us+ ! be/ available sci5ce1 includ+ ! #bjbc ,wildfire ,haz>d ,pot5tial map produc$ by ! ,=e/ ,s]vice ,fire ,model+ ,in/itute & ! #bjbc ,vegetation ,condition ,class categorization produc$ by ! ,l&scape ,fire & ,res\rce ,managem5t ,plann+ ,tools program1 id5tify fire%$s ) significant wildfire haz>d pot5tial & vegetation dep>ture f a fire-adapt$ hi/orical basel9e f :i* qualifi$ =e/ residue biomass c be s\rc$2 7,b7 id5tify regional & ecosy/em-specific requirem5ts to limit eligibility to practices & sites :i*-- 7i7 h m9imal negative impacts on soil quality1 soil f]tility1 soil erosion1 soil c>bon seque/ration1 & site productivity2 7ii7 h m9imal negative impacts on biodiv]sity1 includ+ soil microbiota1 plants1 & animals2 7iii7 h m9imal negative impacts on wat] quality & hydrological function+2 7iv7 h m9imal impacts on r$uc+ or displac+ food production2 & 7v7 h m9imal sub/itution = exi/+ economic uses ( =e/ products1 includ+ consid]+ r$uc+ ! maximum diamet] ( ?9n$ trees consid]$ to be qualifi$ =e/ residue biomass2 & 7,c7 consid] direct & indirect impacts ( biomass s\rc+ & h>ve/4 7#b7 ,public comm5t requirem5t ,n lat] ?an #f mon?s aft] ! date ( ! enactm5t ( ?is ,act1 ! ,secret>y ( ! ,treasury %all publi% 9 ! ,f$]al ,regi/] propos$ regulations t include su/a9ability /&>ds = ! =e/ residue c>bon removal & /orage tax cr$it4 7#c7 ,public comm5t p]iod 7,a7 ,duration ,! ,secret>y %all provide = a p]iod ( n less ?an #fj days aft] ! date ( publication ( ! propos$ regulations dur+ :i* ! public may submit comm5ts on ! propos$ regulations4 7,b7 ,consid]ation ( comm5ts ,! ,secret>y %all consid] all comm5ts receiv$ dur+ ! public comm5t p]iod be=e issu+ f9al regulations4 7#d7 ,f9al regulations ,! ,secret>y %all issue f9al regulations & e/abli% su/a9ability /&>ds = ! c>bon removal tax cr$it e/abli%$ "u ?is section n lat] ?an #ij days aft] ! close ( ! public comm5t p]iod1 tak+ into acc\nt fe$back f ! public & /akehold]s4 7#e7 ,consid]ation ( revision ,e #e ye>s1 ! ,secret>y %all provide = a public comm5t p]iod to consid] :e!r ! su/a9ability /&>ds %\ld be updat$ to reflect late/ sci5ce4 ,! ,secret>y %all consid] all comm5ts receiv$ dur+ ! public comm5t p]iod be=e det]m9+ :e!r to update ! regulations "u ! same proc$ures z us$ to issue ! orig9al /&>ds4 7g7 ,c>bon det]m9ation rulemak+ & public comm5t p]iod 7#a7 ,rulemak+ au?ority ,! ,secret>y ( ! ,treasury1 9 consultation ) ! ,secret>y ( ,en]gy & ! ,adm9i/rator ( ! ,environm5tal ,protection ,ag5cy1 %all issue regulations to e/abli% gre5h\se gas lifecycle analysis requirem5ts & monitor+1 report+1 & v]ification requirem5ts to det]m9e qualifi$ c>bon dioxide equival5t = ! implem5tation ( ! =e/ residue c>bon removal & /orage tax cr$it e/abli%$ by ?is section4 ,^! regulations %all seek to-- 7,a7 to ! greate/ ext5t possible1 id5tify be/ available tools1 models1 or default values = embodi$ or lifecycle emissions 9 ord] to facilitate consi/5cy & comp>ability across qualifi$ c>bon dioxide removal approa*es ) respect to-- 7i7 project-level gre5h\se gas lifecycle analysis2 7ii7 project-level monitor+1 report+1 & v]ification2 & 7iii7 det]m9ation ( net c>bon dioxide removal2 7,b7 include report+ & v]ification requirem5ts :i* facilitate transp>5cy & evaluation ( ! net c>bon dioxide removal claim$ by ! taxpay]2 & 7,c7 take into acc\nt be/ practices & requirem5ts f o!r c>bon dioxide removal acc\nt+ programs 9 ord] to m9imize ineffici5cies & conflict+ proc$ures4 7#b7 ,lifecycle analysis ,"u ! propos$ regulations1 ! project-level gre5h\se gas lifecycle analysis %all-- 7,a7 include all processes1 activities1 & gre5h\se gas emissions associat$ ) ! capture1 /orage1 & utilization ( c>bon dioxide equival5t1 includ+-- 7i7 any mass & en]gy inputs & outputs f raw or process$ mat]ials1 includ+ biomass fe$/ock production1 manufacture1 process+1 transport1 /orage1 use1 & disposal2 7ii7 direct l& use *ange1 e/imat$ indirect l& use *ange1 & o!r ecosy/em p]turbations t affect c>bon uptake ( =e/s2 & 7iii7 long-t]m ret5tion ( c>bon dioxide2 7,b7 only exclude any process f su* analysis if su* process does n significantly *ange ! outcome ( su* analysis1 ) su* exclusion to be not$ & ju/ifi$2 7,c7 calculate net c>bon dioxide equival5t removal1 includ+ acc\nt+ = unc]ta9ty associat$ ) ! e/imate ( net c>bon dioxide removal & tak+ into acc\nt any e/imat$ losses dur+ c>bon /orage ov] a #ajj-ye> p]iod2 & 7,d7 be consi/5t ) ! ,be/ ,practices = ,life ,cycle ,assessm5t ( ,biomass ,c>bon ,removal & ,/orage ,te*nologies issu$ by ! ,dep>tm5t ( ,en]gy on ,janu>y #ag1 #bjbe4 7#c7 ,monitor+1 report+1 & v]ification ,"u ! propos$ regulations1 ! project-level monitor+1 report+1 & v]ification %all-- 7,a7 develop traceability requirem5ts to v]ify ! s\rce & proportion ( qualifi$ =e/ residue biomass us$ 9 a project2 7,b7 utilize indep5d5t ?ird-p>ty v]ifi]s & protocols = monitor+1 report+1 & v]ification2 7,c7 quantify unc]ta9ty associat$ ) measurem5ts & ! result+ e/imate ( net c>bon dioxide removal2 & 7,d7 include requirem5ts = cont9u$ monitor+ ( ! qualifi$ project = a p]iod det]m9$ by ! ,secret>y1 9 consultation ) ! ,secret>y ( ,en]gy & ! ,adm9i/rator ( ! ,environm5tal ,protection ,ag5cy1 to be appropriate4 7#d7 ,public comm5t requirem5t ,n lat] ?an #f mon?s aft] ! date ( ! enactm5t ( ?is ,act1 ! ,secret>y ( ! ,treasury %all publi% 9 ! ,f$]al ,regi/] propos$ regulations t include lifecycle analysis & monitor+1 report+1 & v]ification requirem5ts = ! =e/ residue c>bon removal & /orage tax cr$it4 7#e7 ,public comm5t p]iod 7,a7 ,duration ,! ,secret>y %all provide = a p]iod ( n less ?an #fj days aft] ! date ( publication ( ! propos$ regulations dur+ :i* ! public may submit comm5ts on ! propos$ regulations4 7,b7 ,consid]ation ( comm5ts ,! ,secret>y %all consid] all comm5ts receiv$ dur+ ! public comm5t p]iod be=e issu+ f9al regulations4 7#f7 ,f9al regulations ,! ,secret>y %all issue f9al regulations & e/abli% lifecycle analysis & monitor+1 report+1 & v]ification = ! c>bon removal tax cr$it e/abli%$ "u ?is section n lat] ?an #ij days aft] ! close ( ! public comm5t p]iod1 tak+ into acc\nt fe$back f ! public & /akehold]s4 7#g7 ,consid]ation ( revision ,e #e ye>s1 ! ,secret>y %all provide = a public comm5t p]iod to consid] :e!r ! lifecycle analysis & monitor+1 report+1 & v]ification requirem5ts %\ld be updat$ to reflect late/ sci5ce4 ,! ,secret>y %all consid] all comm5ts receiv$ dur+ ! public comm5t p]iod be=e det]m9+ :e!r to update ! regulations "u ! same proc$ures z us$ to issue ! orig9al requirem5ts4 7h7 ,secure geological /orage regulations ,! ,secret>y ( ! ,treasury1 9 consultation ) ! ,adm9i/rator ( ! ,environm5tal ,protection ,ag5cy & ! ,secret>y ( ,en]gy1 %all e/abli% regulations = det]m9+ adequate security measures = ! geological /orage ( qualifi$ c>bon dioxide equival5t 9 ! =m ( injection ( bio-liquids or bio-solids or eng9e]$ burial ( biomass = purposes ( section #de;,,bb ( ! ,int]nal ,rev5ue ,code ( #aihf su* t ! qualifi$ c>bon dioxide equival5t does n escape into ! atmosph]e ov] a #a1jjj-ye> p]iod4