H.R. 3338 — MARKET CHOICE Act

This section establishes the Rebuilding Infrastructure and Solutions for the Environment Trust Fund (RISE Trust Fund) in the Treasury, consisting of amounts paid into the Treasury pursuant to subtitle L of the Internal Revenue Code of 1986 (as added by title I), with 75% of such amounts appropriated and transferred to the fund.

This section provides that, for each of FY2027 through 2036 and as provided in appropriation acts, amounts in the RISE Trust Fund shall be available in the following percentages: (1) 70 percent to the Highway Trust Fund; (2) 1.5 percent for the weatherization assistance program under part A of title IV of the Energy Conservation and Production Act (42 U.S.C. 6861 et seq.); (3) 3 percent for assistance for displaced energy workers under section 321; (4) 2.5 percent to the Airport and Airway Trust Fund (26 U.S.C. 9502); (5) 0.1 percent to the Leaking Underground Storage Tank Trust Fund (26 U.S.C. 9508); (6) 1.5 percent to the Abandoned Mine Reclamation Fund (30 U.S.C. 1231); (7) 4 percent for frequent and chronic coastal flooding mitigation and adaptation infrastructure projects under section 302; (8) 1.5 percent for the Advanced Research Projects Agency-Energy (42 U.S.C. 16538); (9) 0.7 percent for the Carbon Capture Research and Development Program of the National Energy Technology Laboratory, Office of Fossil Energy, Department of Energy; (10) 0.5 percent for carbon storage activities in the Department of Energy Fossil Energy Research, Development, and Demonstration Program; (11) 0.5 percent for research and development of carbon removal technologies at the National Energy Technology Laboratory, Office of Fossil Energy; (12) 0.3 percent to the Secretary of Energy for research and development on novel uses for carbon oxides; (13) 0.2 percent to the Secretary of Energy for grants to entities constructing common carrier CO₂ pipeline infrastructure; (14) 0.5 percent for battery energy storage research and development through the Department of Energy Office of Electricity; (15) 10 percent for state grants under section 203; (16) 1 percent to the Reforestation Trust Fund (16 U.S.C. 1606a); (17) 0.1 percent for activities to decrease the environmental impact of energy-related activities (42 U.S.C. 16231); (18) 1.6 percent for the Environmental Quality Incentives Program (16 U.S.C. 3839aa et seq.) for practices promoting soil health and methane reduction; and (19) 0.5 percent for the Regional Conservation Partnership Program (16 U.S.C. 3871) for activities addressing soil health, nutrient management, forest restoration, methane emissions reduction, and related conservation goals. This section defines "carbon removal technologies" for purposes of paragraph (11) to include direct air capture and storage (excluding CO₂ from natural springs or photosynthesis), bioenergy with carbon capture and sequestration, enhanced geological weathering, agricultural and grazing practices,

This section establishes annual grants to states, from amounts made available under section 202(a)(15), for distribution to eligible low-income households. A household qualifies if (1) its gross income does not exceed 150% of the poverty line (except as provided in subsection (d)(4)); (2) the state agency determines it participates in the Supplemental Nutrition Assistance Program (SNAP), Food Distribution Program on Indian Reservations (FDPIR), or nutrition assistance programs in Puerto Rico or American Samoa; (3) it consists of a single individual or married couple that receives the Medicare Part D low-income subsidy (i.e., under SSA §1860D–14) or participates in Medicare Part D and meets income requirements for that subsidy; or (4) it consists of a single individual or married couple receiving Supplemental Security Income (SSI) benefits. Grant amounts are allocated proportionally based on each state's share of total U.S. greenhouse gas emissions from electricity, natural gas, gasoline, diesel, and fuel ethanol sold nationwide during the preceding calendar year, as determined by the Secretary of the Treasury in consultation with the Secretary of Energy and EPA Administrator. Not later than one year after enactment, the Secretary must establish by rule an annual date for states to submit distribution plans, transferring funds only upon verifying compliance with this section's requirements. "State" includes the District of Columbia and U.S. territories and possessions.

This section repeals the federal excise taxes on motor vehicle and aviation fuels (i.e., Subpart A of part III of subchapter A of chapter 32 of the Internal Revenue Code). The repeal applies to transactions after December 31, 2025.

This section modifies the qualifying advanced coal project investment tax credit (Section 48A) as follows: (1) requires 60% carbon sequestration for reallocations of credits to electrical generating units in existence on October 3, 2008; (2) lowers the nameplate generating capacity requirement to 200 megawatts (from 400 megawatts); (3) simplifies the definition of advanced coal-based generation technology by removing certain design, efficiency, and emissions requirements; (4) for retrofits of units that underwent a best available control technology analysis after August 8, 2005, sets SO2 or NOx removal/emissions design levels to those determined in the analysis; and (5) mandates reallocations of remaining credits every six months (previously one-time after six years) until exhausted, expands reallocation triggers to include failures to satisfy certification requirements or revocations, and requires additional allocation programs as needed. (The Section 48A credit supports investments in coal-fired electric generating facilities with advanced emissions controls. Thus, these changes broaden eligibility, streamline criteria, and accelerate deployment of remaining credits.) The amendments generally apply to allocations and reallocations after enactment, with reallocation changes applying to credits available on the date of enactment.

This section adds a new section 330 to Title III of the Clean Air Act establishing a moratorium, subject to exceptions, on EPA issuance or enforcement of rules (or state requirements) limiting greenhouse gas (GHG) emissions from (1) combustion of fossil fuels after the point of taxation under IRC §9901(d) or (2) emissions subject to taxation under IRC §§9902 or 9903, if based on the emissions' GHG effects (as defined in IRC §9907); authorizes EPA notwithstanding the moratorium to regulate GHGs for non-GHG health/welfare effects (considering collateral GHG benefits), heat-trapping non-GHGs, or monitoring/investigations; exempts certain oil/gas facilities and publicly owned treatment works; and sets moratorium expiration on January 1, 2039 (or earlier beginning October 1, 2031, or October 1, 2035, if GHG emissions from taxed sources exceed 2030 or 2034 targets per IRC §9901(b)(3)(A) reports due March 30, 2031, or March 30, 2035). It further (1) amends CAA §202(b) (new motor vehicle/engine standards) to authorize EPA GHG regulations and state waivers under §209(b) notwithstanding new §330(a); (2) amends CAA §211(c) (fuel controls) to prohibit GHG-reduction requirements on fuel manufacturers/processors/distributors except as provided in §211(o); and (3) amends CAA §213 (nonroad engines/vehicles) to authorize GHG regulations notwithstanding new §330(a)-(b).

This section authorizes the Secretaries of Commerce and the Army, in consultation with the Secretary of Homeland Security, to make grants to state and local governments and federally recognized Indian Tribes for frequent and chronic flooding mitigation and adaptation infrastructure projects. Grants may be used for (1) adapting existing infrastructure to climate change impacts; (2) maintaining flood risk reduction infrastructure such as drainage structures, roads, bulkheads, gates, and floodwalls; (3) increasing resilience through hard infrastructure (e.g., bulkheads, levees), natural infrastructure (e.g., dune enhancement, habitat restoration), or both; (4) improving conveyance, diversion, removal, and storage infrastructure; (5) innovative street flooding methods (e.g., absorbent streets, bioswales, permeable pavement); and (6) technologies to mitigate power outages at critical facilities (e.g., microgrids, energy storage). Projects are ineligible if they have long-term negative impacts on ecological functions, habitat, or natural protections; priorities include special flood hazard areas (with at least 2 feet of freeboard, or 3 feet for critical infrastructure), protection of critical infrastructure as defined in the Critical Infrastructures Protection Act of 2001 (i.e., systems and assets vital to national security, economy, public health, or safety), and projects yielding additional environmental, social, and economic benefits. Two or more contiguous governments or Tribes may apply jointly; the federal share is limited to 90% of costs (with non-federal contributions creditable in cash, property, or services); and grant recipients must submit annual progress reports.

This section directs the Secretary of Labor to carry out, for 10 years after enactment from amounts made available under section 202, a program to assist workers in the energy sector—defined as (1) workers in fossil energy sectors displaced as a result of this Act and (2) workers at nuclear power plants that ceased operations in the two years preceding enactment or whose owners announced prior to enactment an intent to cease operations. Eligible activities include (1) worker retraining, (2) relocation expenses for those moving to new employment, (3) early retirement, (4) health benefits, (5) block grants to affected communities for economic redevelopment and infrastructure investments, and (6) transfers to the trustees of the 1974 United Mine Workers of America Pension Plan to pay required benefits, provided the plan's funded percentage (as defined in section 432(j)(2) of the Internal Revenue Code of 1986) is below 100% in the prior plan year. (Thus, no transfers may occur in the first fiscal year after a plan year in which the funded percentage reaches at least 100%.)