# America's Clean Future Fund Act: Plain Language Summary

This bill creates a new government agency called the Climate Change Finance Corporation to invest money in clean energy projects and help communities prepare for climate change impacts. The agency would be run by a seven-member board appointed by the President and would have a specific mission: cut greenhouse gas emissions by 45 percent by 2030 and reach zero emissions by 2050. To accomplish this, the corporation would provide loans, loan guarantees, and grants to support clean energy projects, renewable technology, resilient infrastructure, and research into new climate solutions.

The bill sets up three working groups to guide the corporation's decisions. An environmental justice working group would focus on making sure investments reach communities most affected by pollution and climate change. A worker and community transition assistance group would help people whose jobs are affected by the shift away from fossil fuels. A research and innovation group would guide investments in new technologies. These groups would include experts, affected community members, and other stakeholders, and they'd be required to hold regular public meetings and gather feedback from the communities they serve.

The corporation would create an investment plan that determines where money gets spent. At least 40 percent of grant money each year must go to disadvantaged communities—particularly communities of color and low-income areas that have historically faced the most pollution and climate risks. The corporation would use various financial tools like loans and grants to encourage both private investment and direct government funding for clean energy projects. The board would update the investment plan every four years based on community needs, how well previous investments worked, and progress toward the emissions reduction goals.

America's Clean Future Fund Act

Newman, Marie

America's Clean Future Fund Act This bill establishes requirements and incentives to reduce greenhouse gas emissions and assist industries, communities, and workers transition to a low-carbon economy, including by establishing (1) the Climate Change Finance Corporation (C2FC); (2) the America's Clean Future Fund; and (3) a carbon fee on the use, sale, or transfer of certain fuels by covered entities. The bill provides appropriations to the C2FC, an independent agency, which must finance clean energy and climate change resiliency activities in order to meet the goal of eliminating greenhouse gas emissions by 2050. The bill also provides appropriations for the America's Clean Future Fund. Amounts in the fund may be used for the C2FC, stimulus payments (i.e., tax rebates) to individuals whose gross incomes do not exceed specified thresholds, decarbonization transition payments to the agricultural sector, and grants to help certain communities and workers transition to a low-carbon economy. Revenues generated from the carbon fee must also be deposited into the America's Clean Future Fund. Beginning in 2023, covered entities (e.g., entities that use, sell, or transfer fossil fuels) must pay a carbon fee of $25 per metric ton of carbon dioxide or carbon dioxide equivalent. The fee increases by $10 each year, multiplied by the cost-of-living adjustment. The fees further increase if the entities miss cumulative greenhouse gas emission targets established by the bill. Refund payments may be provided for carbon capture, sequestration, and utilization.