Polluter Pays Climate Change Fund

(a) Establishment of fund (1) In general Subchapter A of chapter 98 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: 9512. Polluters Pay Climate Fund (a) Establishment There is established in the Treasury of the United States a trust fund, to be known as the Polluters Pay Climate Fund (hereinafter in this section referred to as the Fund), consisting of amounts as are appropriated or credited to such Trust Fund as provided in this section and section 9602(b). (b) Transfers There are hereby appropriated to the Fund amounts equivalent to the taxes received in the Treasury under section 4691. (c) Expenditures from the Fund Amounts in the fund shall be available, as provided in appropriations Acts, for the purpose of making expenditures to carry out the purposes of section 4(b) of the Polluters Pay Climate Fund Act of 2025.. (2) Clerical amendment The table of sections for subchapter A of chapter 98 of such Code is amended by adding at the end the following new item: Sec. 9512. Polluters Pay Climate Fund.. (b) Expenditures from fund (1) Definitions In this subsection: (A) Administrator The term Administrator means the Administrator of the Environmental Protection Agency. (B) Environmental justice community The term environmental justice community means a community with significant representation of communities of color, low-income communities, or Tribal and Indigenous communities that experiences, or is at risk of experiencing, higher or more adverse human health or environmental effects as compared to other communities. (C) Fund The term Fund means the Polluters Pay Climate Change Fund established under section 9512 of the Internal Revenue Code of 1986. (D) Secretary The term Secretary means the Secretary of the Treasury. (2) Use of fund amounts (A) General purposes The Secretary, in consultation with the Administrator and the heads of other relevant agencies, shall use amounts in the Fund for the purposes of furthering a comprehensive and equitable Federal response to climate change impacts through investments in climate resilience, adaptation, disaster response, and environmental justice, including— (i) climate-related disaster recovery and mitigation support; (ii) climate change adaptation support through climate and disaster planning assistance, funding for climate-resilient infrastructure, and improved climate and extreme weather prediction capabilities; (iii) initiatives that increase the climate resilience of energy systems through energy efficiency, grid resilience, and distributed electricity generation initiatives; (iv) initiatives that increase the climate resilience of the food system through support for climate-resilient farming practices; (v) initiatives that increase the climate resilience of the transportation system through planning and climate change adaptation support; (vi) initiatives that increase the climate resilience of ecosystems through conservation, restoration, and wildfire management activities; (vii) support for climate-related public health initiatives, including efforts to address extreme heat; and (viii) initiatives that increase the climate resiliency of drinking water and stormwater infrastructure. (B) Specified uses In carrying out subparagraph (A) each fiscal year and to the greatest extent practicable, the Secretary shall use amounts in the Fund— (i) to provide funding of not less than $15,000,000,000 to the Federal Emergency Management Agency for response and resilience programs of the Federal Emergency Management Agency to address climate-related disasters, including hurricanes, flooding, extreme heat, and wildfires, of which not less than $3,000,000,000 shall be used to carry out the Building Resilient Infrastructure and Communities program under section 203 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5133); and (ii) to provide funding of not less than $6,000,000,000 for grants and technical assistance under section 138 of the Clean Air Act (42 U.S.C. 7438), subject to the condition that the Administrator may determine the appropriate amounts to be used for those grants and that technical assistance. (C) Environmental justice set aside Of the amounts appropriated from the Fund each fiscal year, 40 percent shall be used for investments that benefit environmental justice communities. (D) Selection For the purpose of determining how to award amounts appropriated from the Fund in excess of the amounts required to be used under subparagraph (B), the Secretary, in coordination with the Administrator and the heads of other relevant agencies, shall establish selection criteria, which shall give the highest priority to projects or other activities that are most impactful in achieving the purposes described in subparagraph (A), as determined by the Secretary, in coordination with the Administrator and the heads of other relevant agencies.