Do parents need valid passport to apply green card?

1) Do parents need valid passport to apply green card? I didn't find any Green card application form (130, 485) requiring valid passport.

2)If passport is needed for Green card application, for parents with expired I-94 card and passport, can they get new passport from Chinese consulate?
Is there any additional forms and penalty needed for green card application?

Any experience to share?

Many thanks to those replying my questions.

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