Jobs for a Carbon Free Transportation System Act

Bill Number: H.R. 6923
Origin Chamber: House
Congress: 119th Congress, Session 1
Policy Area: Environmental Protection
Status: Introduced
Latest Action: 2025-12-24: Referred to the Subcommittee on Railroads, Pipelines, and Hazardous Materials.
Last Updated: 2026-06-03T08:09:06Z

AI-Generated Summary

Purpose of the Legislation

The "Jobs for a Carbon Free Transportation System Act" (H.R. 6923) aims to promote sustainable transportation by reducing carbon and greenhouse gas (GHG) emissions through innovative infrastructure, encourage investments in public transit systems via tax incentives, and support workers in fossil fuel industries transitioning to green jobs. It seeks to foster interconnected, low-emission transport networks, fund community development near transit hubs, and ensure equitable economic shifts away from fossil fuels.

Key Provisions

The bill is structured into three titles, establishing new programs and incentives.

Title I: Low Carbon Corridors

Grant Program Establishment: The Secretary of Transportation creates a grant program for states, local/tribal governments, or metropolitan planning organizations (regional groups that plan transportation) to develop "low carbon corridors"—connected networks linking public transit, rail, roads, and alternatives like biking or walking paths.
Project Goals and Eligible Uses: Grants fund projects to cut emissions, improve connectivity, and reinvest in infrastructure. Allowed uses include high-occupancy vehicle lanes (for cars with multiple passengers), value capture (repurposing increased property values for funding), transit-oriented development (building housing/commerce near transit), carbon fees (charges on emissions), electric/automated vehicle lanes synced with transit, smart city tech, high-speed rail, and pedestrian/bike facilities.
Labor and Procurement Rules: Projects must follow federal labor laws (e.g., Davis-Bacon Act for prevailing wages on public works; Walsh-Healy Act for fair contracts; Fair Labor Standards Act for minimum wages and overtime). Recipients must prioritize U.S.-made iron, steel, and manufactured goods (Buy America provisions), with waivers possible if costs rise over 25% or materials are unavailable.
Partnerships and Monitoring: Grantees can partner with nonprofits or universities. The Departments of Transportation (DOT) and Environmental Protection Agency (EPA) will track emission reductions.

Title II: Value Capture

Definitions: Key terms include "value capture" (using economic gains from public investments, like higher property taxes, to fund more projects), "tax increment" (extra federal capital gains taxes from rising property values), and "affordable transit-oriented development" (low-cost housing and businesses near transit stops).
Technical Assistance Program: Amends federal transportation law (49 U.S.C. Chapter 53) to add Section 5341, allowing DOT grants to states/local governments for value capture planning, policy development, and partnerships promoting transit, mobility, and affordable development. DOT must create voluntary standards, a report on best practices, and share examples with Congress within specified timelines.
Federal Tax Increment Financing Districts: DOT designates "nominated areas" (proposed by states/locals) as federal districts for up to 5 years (until 2030 max), where increased federal capital gains taxes fund public transit, housing, and community improvements. Applications require detailed plans on boundaries, costs, revenues, and maintenance. Designations can be revoked for non-compliance.
Eligibility and Special Rules: Areas must be near transit corridors and use value capture tools meeting federal standards. The Treasury Secretary certifies tax values, handles guarantees for bonds, and notifies Congress. Adds Internal Revenue Code (IRC) Section 147A for "qualified transit-oriented development bonds"—tax-exempt private activity bonds for projects within 0.5 miles of major transit (e.g., rail stations), secured by taxes or fees, with volume caps allocated by states. Bonds require policies for affordable housing, mixed-use development, and 25-50% of new property tax revenue for debt service.

Title III: Protecting Workers for a Clean Future Act

Findings: Recognizes fossil fuel regions' economic reliance but highlights pollution burdens on communities, emphasizing inclusive transitions involving workers, labor groups, environmental justice organizations, tribes, governments, and educators.
Renewable Energy Transition Grant Program: The Secretary of Labor (with Energy Department input) awards grants to local/tribal governments in high fossil fuel job areas (based on 2017 Energy Employment Report) to create transition plans. Plans involve industry partnerships and experts, covering apprenticeships, training for green jobs (e.g., renewables, electric vehicles, environmental cleanup), and access to aid like unemployment or trade adjustment assistance. Funds can supplement wages, retirement bridges, or career counseling.
National Employment Corps: Establishes a DOL program for job guarantees if transitions fail. Provides grants for direct employment in infrastructure, energy efficiency, care services, etc., covering wages (minimum $15/hour, adjusted for region/experience/inflation), benefits, and materials. Includes supportive services (e.g., childcare, counseling). Corps coordinates federal/local efforts, prohibits displacing existing workers, respects unions, and maintains a job database/website. Apprenticeships follow federal standards.

Significant Changes to Existing Law

Transportation Law Amendments: Adds new Section 5341 to 49 U.S.C. Chapter 53 for value capture technical assistance and standards, expanding federal support for local funding mechanisms.
Tax Code Additions: Introduces IRC Section 147A for tax-exempt bonds tied to transit development, with volume caps similar to existing private activity bonds but focused on green projects. Applies Davis-Bacon wage rules to these bonds.
Labor and Energy Programs: Creates new DOL grant and corps programs, building on Workforce Innovation and Opportunity Act partnerships but targeting fossil fuel transitions. Mandates Buy America and labor standards in new transport grants, strengthening enforcement via Treasury certifications and EPA/DOT monitoring.
No Direct Repeals: Builds on existing laws (e.g., public transit definitions in 49 U.S.C. §5302) without altering core structures.

Potential Impacts

Government Agencies: DOT gains grant administration and designation duties; EPA assists in emission tracking; DOL oversees worker programs and corps; Treasury handles tax certifications and bond guarantees—increasing workload and interagency coordination. Authorizes unspecified appropriations, potentially straining budgets without new funding.
Citizens: Improves access to low-emission transit, affordable housing near stations, and cleaner air in corridors. Fossil fuel workers in affected areas gain training, job guarantees, and services, reducing unemployment risks. Broader public benefits from reinvested tax increments into community development, though property owners may face higher assessments.
International Relations: Requires Buy America compliance consistent with U.S. trade agreements (e.g., no violations of WTO rules), potentially boosting domestic manufacturing but limiting foreign imports for projects. No direct foreign policy effects, but supports U.S. climate goals aligned with global emission reductions.

Main Stakeholders Affected

Governments and Planners: State, local, and tribal entities; metropolitan planning organizations—eligible for grants, designations, and technical aid but must meet labor, planning, and value capture standards.
Workers and Communities: Fossil fuel employees (e.g., in oil/gas regions like California) and displaced workers—benefit from transitions, training, and job corps. Frontline communities (often low-income or minority groups near pollution sources) gain from inclusive planning and equity-focused developments.
Industry and Developers: Public transit operators, renewable energy firms, builders of housing/infrastructure—access funding via bonds and grants. Labor unions protected in new projects.
Environmental and Nonprofit Groups: Involved in partnerships for emission reductions, smart cities, and best practices dissemination.
Taxpayers and Businesses: Property owners/businesses in designated districts face potential tax increments; green sectors (e.g., electric vehicles, rail) see investment opportunities.

Notable Legal, Constitutional, or Political Implications

Legal: Strengthens enforcement of wage/hour laws (e.g., Davis-Bacon, Fair Labor Standards) and Buy America via waivers and reporting, reducing disputes over public works contracts. Treasury rulemaking (within 1 year) ensures tax procedures; bond eligibility ties to local policies, potentially litigated if standards are deemed overly restrictive.
Constitutional: Value capture mechanisms (e.g., dedicating tax increments) could raise Takings Clause concerns if seen as uncompensated property burdens, though framed as voluntary designations. Federal job guarantees via corps may implicate spending power limits, but align with established welfare programs.
Political: Advances bipartisan green infrastructure goals (e.g., emission cuts, job creation) while addressing equity for fossil fuel states, potentially bridging environmental/labor divides. Congressional notifications and timelines promote oversight; focus on "high-road" employers (fair-wage sustainable firms) signals policy shift toward inclusive decarbonization without explicit mandates on private industry.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. DeSaulnier, Mark [D-CA-10]

Recent Actions

2025-12-24: Referred to the Subcommittee on Railroads, Pipelines, and Hazardous Materials.
2025-12-24: Referred to the Subcommittee on Highways and Transit.
2025-12-23: Referred to the Committee on Transportation and Infrastructure, and in addition to the Committees on Ways and Means, Education and Workforce, and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
2025-12-23: Referred to the Committee on Transportation and Infrastructure, and in addition to the Committees on Ways and Means, Education and Workforce, and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
2025-12-23: Referred to the Committee on Transportation and Infrastructure, and in addition to the Committees on Ways and Means, Education and Workforce, and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
2025-12-23: Referred to the Committee on Transportation and Infrastructure, and in addition to the Committees on Ways and Means, Education and Workforce, and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
2025-12-23: Introduced in House
2025-12-23: Introduced in House

Bill Versions

Jobs for a Carbon Free Transportation System Act — issued 2025-12-23 — PDF (32 pages)