H.R. 6918 — Climate Pollution Standard and Community Investment Act of 2025

This section amends the Clean Air Act to add a new title VII, "Climate Pollution Reduction Program," which includes §701 defining key terms for the program. Those terms include (1) "attributable greenhouse gas emissions," generally meaning emissions from combustion of covered fuels or gases produced or imported by a covered entity or from natural gas delivered by local distribution companies; (2) "carbon dioxide equivalent," as provided under §713; (3) "compliance period," meaning calendar years 2027-2029 for the first period and subsequent three-year periods; and (4) "covered entity," encompassing electricity sources with nameplate capacity of at least 25 megawatts; fuel producers or importers whose aggregate combusted output would emit 25,000 or more tons of carbon dioxide equivalent; bulk producers or importers of specified greenhouse gases (e.g., fossil fuel-based CO2, N2O, fluorinated gases) totaling 25,000 or more tons; nitrogen trifluoride emitters of 25,000 or more tons; geologic sequestration sites; specified industrial sectors (e.g., cement production, iron and steel); certain chemical/petrochemical producers; other large emitters in designated sectors; certain fossil fuel-fired industrial devices; and natural gas local distribution companies delivering 460,000,000 or more cubic feet to non-covered customers. Additional defined terms include "criteria air pollutant" (i.e., those subject to NAAQS under CAA §109) and "designated representative" (i.e., an authorized representative for certain covered and reporting entities).

This section establishes the Clean Energy Rebate Program, to be carried out by the Secretary of the Treasury using amounts made available under sections 722(c) and 752 of the Clean Air Act, to provide quarterly rebates to eligible households via direct deposit, state electronic benefit transfer systems, or other approved mechanisms. An eligible household is one (1) with gross income (as determined under SNAP standards) not exceeding 200% of the poverty line (as defined in the Community Services Block Grant Act); (2) determined by the relevant state agency to be participating in the Supplemental Nutrition Assistance Program (SNAP), the food distribution program on Indian reservations, or the nutrition assistance program in Puerto Rico or American Samoa; or (3) consisting of a single individual or married couple receiving benefits under the Supplemental Security Income (SSI) program, with at least one member a citizen or permanent legal resident. (Thus, eligibility leverages participation in existing low-income nutrition and SSI programs to target assistance efficiently.) The section directs the Secretary to (1) estimate eligible and participating households; (2) develop streamlined procedures, in consultation with the Commissioner of Social Security, Railroad Retirement Board, Secretary of Veterans Affairs, and state agencies, for beneficiaries of programs they administer; (3) set rebate amounts based on available funding and the number of citizens and permanent residents in the household; and (4) conduct robust outreach. It further authorizes states, upon Secretary approval and using uniform national standards, to administer the program—including coadministration with SNAP—provided they impose no additional eligibility conditions, certify households, issue rebates, and report to the Secretary; allows accommodations for special-needs households (e.g., elderly, disabled, rural, homeless, or on reservations); deems rebates nontaxable under the Internal Revenue Code; and requires regulations or guidance within 24 months of enactment.

This section establishes the Worker and Community Assistance Fund in the Treasury, consisting of amounts deposited under Clean Air Act sections 722(g) and 752 and such additional amounts as may be appropriated. Amounts in the fund are available without further appropriation to the Secretary of Labor and Director of the Office of Energy and Economic Transition until expended for carrying out title II of this Act, with not more than 5% of the amount available on October 1 of each fiscal year usable for related administrative expenses.

This section establishes the Cleaner Air Community Fund in the U.S. Treasury, consisting of (1) amounts deposited under CAA §§722(h) and 752 and (2) supplemental appropriations. Fund amounts are available to the EPA Administrator without further appropriation or fiscal year limitation until expended, with up to 5% of the balance available on October 1 of each fiscal year usable for administrative expenses of carrying out part C of title VII of the Clean Air Act.

This section establishes in the Treasury the Negative Emissions Activities Fund, consisting of amounts deposited under Clean Air Act sections 722(i) and 752 and such additional amounts as may be appropriated. Amounts in the fund are available to the EPA Administrator without further appropriation and without fiscal year limitation until expended, with up to 5% of the balance available on October 1 of each fiscal year usable for administrative expenses of carrying out part D of title VII of the Clean Air Act.

This section establishes in the Treasury the Energy Innovation Fund, consisting of amounts deposited under sections 722(j) and 752 of the Clean Air Act and such additional amounts as may be appropriated. Beginning in FY2027, amounts in the fund are available to the Secretary of Energy without further appropriation—and remain available until expended—to provide competitive assistance to local, state, and Tribal governments; institutions of higher education; companies; research foundations; trade and industry research collaborations; consortia of such entities; or other research and development entities for research, development, demonstration, and manufacturing of clean energy technologies that support the goal established by section 702 of the Clean Air Act (i.e., novel early-stage clean energy research; techniques, processes, and technologies with related testing and evaluation; manufacturing processes for clean energy technologies; and demonstrations for commercial applications). The Secretary may use up to 5% of the fund's balance on October 1 of each fiscal year for administrative expenses; assistance must supplement, not supplant, other federal resources; and the Secretary must submit to Congress—and make public—an annual report on funded activities beginning three years after enactment.

This section defines "emission allowance" as any allowance established or issued under title VII of the Clean Air Act (or any derivative thereof) and establishes an interagency working group, to be formed by the President not later than one year after enactment of this section. The working group—comprising representatives from the Environmental Protection Agency, Federal Energy Regulatory Commission, Commodity Futures Trading Commission, and other relevant agencies—must make periodic recommendations to Congress and federal agencies on effective market oversight of emission allowance transactions, including prohibitions on fraud, market manipulation, and excess speculation; limits on price fluctuations; market transparency for price discovery; and facilitation of Clean Air Act title VII compliance. Not later than three years after enactment and biennially thereafter, the working group must submit to the President and Congress a report with recommendations for federal regulations or actions and any needed statutory changes to ensure transparent, fair, stable, and efficient emission allowance markets.

This section establishes direct hire authority for the Environmental Protection Agency (EPA) Administrator to recruit and appoint highly qualified individuals directly into the competitive service for positions needed to implement this title (including its amendments), upon determining a severe shortage of candidates or critical hiring need, notwithstanding standard competitive hiring procedures (5 U.S.C. §§ 3304, 3309-3318).

This section establishes definitions for terms used in this title, including (1) adversely affected community, meaning a unit of local government or Indian Tribe (or subdivision) significantly disrupted by the U.S. transition to net-zero greenhouse gas emissions through loss of tax revenue or employment from closure or risk of closure of an impacted employer; (2) adversely affected worker, meaning an individual totally or partially separated from employment by an impacted employer; (3) Director, meaning the Director of the Office of Energy and Economic Transition; (4) impacted employer, meaning a private entity primarily engaged in fossil fuel extraction or refinement, fossil fuel-based electricity generation, energy-intensive industrial products, internal combustion engine vehicle manufacturing, fossil fuel delivery infrastructure, or other net-zero-disrupted industries as determined by the Director in consultation with the EPA Administrator and Secretary of Labor; (5) partial separation, meaning a reduction to 80% or less of prior average weekly hours and wages without total separation; and (6) total separation, meaning layoff or severance from employment by an impacted employer.

This section directs the Secretary of Energy to seek an agreement with the National Academy of Sciences, within 180 days of enactment, under which the Academy conducts two studies on the potential impacts of U.S. net-zero greenhouse gas emissions by 2050 on fossil fuel-dependent workers and communities, with reports submitted to Congress and the Secretary. (1) A study, due within one year of the agreement, on communities (including coal-dependent ones) that experienced energy transitions in the past 10 years; and (2) a study, due within three years, on other communities and industries likely to experience transitions. Both studies must assess worker and community disruption trends; identify at-risk fossil fuel occupations (i.e., extraction, refining, electricity generation, energy-intensive manufacturing, internal combustion engine vehicles, and fossil fuel infrastructure), including employee counts, locations, average wages/benefits, and ages (with counts of those 55 and older); evaluate impacts and transferable skills to unaffected industries; identify aging/debt-burdened fossil fuel power plants and local governments reliant on these industries for over 25% or 50% of tax revenue or employment; assess affected communities' status, economic opportunities, and tax-funded services (e.g., education, public safety, health care); and recommend transition strategies consistent with net-zero goals, including compensation (e.g., wage support, pensions, early retirement for those over 55), retraining, job placement, and economic diversification.

This section establishes in the Executive Office of the President the Office of Energy and Economic Transition, led by a Director appointed by the President with Senate confirmation, compensated at up to the annual rate for level II of the Executive Schedule, and exceptionally qualified to address challenges for workers and communities affected by the transition to net-zero greenhouse gas emissions. The Director must (1) administer programs under this title; (2) prepare a biennial Worker and Community Transition Report to Congress beginning in 2027 assessing affected workers and communities, federal and other programs, trends, deficiencies, and recommendations; (3) coordinate federal activities via an interagency task force and stakeholder committee; (4) maintain a public website as an information clearinghouse; (5) provide technical and financial assistance to affected communities; (6) analyze relevant data; and (7) implement grants or assistance where none exists federally. The Office may employ necessary personnel and experts or consultants under 5 U.S.C. §3109 (authorizing temporary or intermittent services without regard to competitive service or pay rules, subject to specified limits); accept reimbursements for travel; and receive such appropriations as necessary.

This section establishes the Interagency Energy and Economic Transition Task Force, to be convened by the Director not later than one year after enactment, to enhance coordination of federal programs and activities supporting adversely affected workers and communities—with emphasis on economic development and diversification in those communities—during the transition to net-zero greenhouse gas emissions. The task force comprises (or designees of) the Secretaries of Energy, Labor, Commerce, Agriculture, Health and Human Services, Housing and Urban Development, Interior, Transportation, and Treasury; the Secretaries of Education; the EPA Administrator; the SBA Administrator; the OMB Director; the CEQ Chair; the ARC Chairman; and other officials as determined by the Director. The task force (1) reports to the President through the Director; (2) coordinates programs related to the Office of Energy and Economic Transition to ensure consistent administration across agencies; (3) utilizes external public and private services, facilities, and data to avoid duplication; and (4) identifies improvement opportunities for federal support, informed by the Stakeholder Advisory Committee under §205 and public input. The task force must hold public meetings or solicit input on related federal policies and programs and publish summaries of comments received.

This section establishes a Stakeholder Advisory Committee, to be convened by the Director of the Office of Energy and Economic Transition not later than one year after enactment, to advise on the needs of workers and communities affected by the U.S. energy transition to net-zero greenhouse gas emissions. Committee membership emphasizes economic development and diversification in affected communities and includes (1) labor union representatives from the mining, electricity generation, manufacturing, and transportation sectors; (2) community leaders from adversely affected and Tribal/Indigenous communities; (3) state, Tribal, and local government representatives; (4) economic development experts; (5) workforce development experts; (6) nongovernmental organization representatives, including environmental organizations; and (7) private sector representatives. Committee responsibilities include improving Office participation and communication with affected communities; recommending best practices and lessons learned from energy transitions; supporting community-based public meetings; soliciting feedback from Community-Based Transition Hubs; and issuing reports with recommendations (initially within two years of establishment and biennially thereafter). The Director must provide a written response to each recommendation within 180 days. The committee meets at least quarterly and open to the public, with Director (or designee) attendance required, public comment opportunities, and invitations extended to Interagency Energy and Economic Transition Task Force representatives. Not later than two years after enactment and annually thereafter, the Director must hold public meetings in affected communities, coordinated with grant recipients under section 207. Committee members may receive travel expenses as determined by the Director, and the committee continues indefinitely unless terminated by law.

This section establishes a program administered by the Director, using funds from the Worker and Community Assistance Fund, to assist eligible local government entities (i.e., counties, municipalities, school districts, special districts, or Tribal Governments) that experience at least a 25% reduction in specified revenues due to the closure of one or more impacted employers within the prior two years. The program requires the Director to (1) identify socioeconomic impacts from such closures using uniform analysis; (2) apply consistent policies across federal assistance programs; (3) promote intergovernmental cooperation and serve as an information clearinghouse; and (4) support local economic diversification planning, including preemptive grants to at-risk entities. The Director must make annual payments to replace eligible local revenues (i.e., average annual real property taxes, royalties, lease payments, transaction privilege taxes, sales taxes, or payments in lieu of taxes from impacted employers over the three years prior to closure), limited to one payment per fiscal year for up to eight years per entity and prioritized by application date after employer closure is verified. Payments equal 90% of eligible local revenues in years one and two, 75% in years three and four, 50% in years five and six, and 25% in years seven and eight, subject to pro rata reduction if annual funding is insufficient; recipients must submit annual reports detailing use for specified purposes (e.g., infrastructure, economic development, worker services). The section authorizes such sums as necessary to carry out the program.

This section establishes a Community-Based Transition Hub grant program, administered by the Director using amounts from the Worker and Community Assistance Fund, to support workers and communities affected by the energy transition to net-zero greenhouse gas emissions. Eligible entities must demonstrate relationships with local employers, governments, workforce organizations, and others; capacity to perform specified duties; ability to meet Director-established standards; and capacity to provide required information, with grant priority to communities receiving or likely to receive assistance under section 206. Grant recipients must (1) coordinate with the Office of Energy and Economic Transition and federal agencies on information, assistance, and best practices; (2) provide capacity-building and technical assistance, including grant writing, to local leaders for planning and implementation; (3) advise on federal and state assistance applications; (4) conduct public education and outreach; (5) facilitate access to training, employment services, Workforce Investment Act programs, educational opportunities (including referrals to educational opportunity centers under section 402F of the Higher Education Act of 1965), prevocational services, and support services (e.g., childcare, counseling, transportation); (6) offer individual employment counseling and plans; (7) provide labor market and job information; and (8) deliver services in a culturally and linguistically appropriate manner. Grants are limited to six years and $12 million per entity, with Director-established standards for recipients and requirements for accurate, impartial information.

This section establishes a program under which the Secretary of Labor, using amounts from the Worker and Community Assistance Fund, provides assistance to eligible adversely affected workers (i.e., those totally or partially separated, or at risk thereof, from an impacted employer within the prior year) at employment sites where sales, production, or delivery have decreased due to requirements of title VII of the Clean Air Act, as added by this Act (e.g., fossil fuel electricity generation facility closures or unoffset energy cost increases in manufacturing). To receive assistance, petitions must be filed simultaneously with the Secretary and the relevant state governor by (or on behalf of) affected workers; the Secretary must determine eligibility within 60 days based on criteria including a significant number or percentage of site workers being adversely affected, publish notices and certifications as applicable, and ensure rapid response and career services are available; eligible workers then receive wage assistance and other benefits specified in subsections (e) and (f). (Thus, the program targets rapid support for workers and communities impacted by specified environmental regulations.)