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HomeMy WebLinkAboutBack-Up from Law Dept.AUTHENTICATED 11.5. GOVERNMENT INFORMATION GPO I 1161S CONGRESS 1-1. •�• 763 1ST SESSION To create a Carbon Dividend Trust Fund for the American people in order to encourage market -driven innovation of clean energy technologies and market efficiencies which will reduce harmful pollution and leave a healthier, more stable, and more prosperous nation for future genera- tions. IN THE HOUSE OF REPRESENTATIVES JANUAILY 24, 2019 Mr. DEUTCII (for himself, Mr. LIPINSKI, Mr. CRIST, Mr. PETERS, Ms. ESIIoo, Ms. JUDY CIIU of California, and Mr. ROONEY of Florida) intro- duced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committees on Energy and Commerce, and Foreign Affairs, 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 A BILL To create a Carbon Dividend Trust Fund for the American people in order to encourage market -driven innovation of clean energy technologies and market efficiencies which will reduce harmful pollution and leave a healthier, more stable, and more prosperous nation for fixture gen- erations. 1 Be it enacted by the Senate and House of Representa- 2 tives of the United States of America in Congress assembled, 2 1 SECTION 1. SHORT TITLE. 2 This Act may be cited as the "Energy Innovation and 3 Carbon Dividend Act of 2019". 4 SEC. 2. FINDINGS. 5 The Congress finds that- 6 (1) efficient markets strengthen our economy 7 and benefit our Nation by encouraging competition, 8 innovation, and technological progress; 9 (2) efficient markets should reflect all costs of 10 goods to ensure that they advance America's pros- 11 perity and national interests; 12 (3) emissions of carbon pollution and other 13 harmful pollutants into our Nation's air impose sub- 14 stantial costs on all Americans and on fixture gen- 15 orations; and 16 (4) creation of a Carbon Dividend Trust Fund, 17 to be distributed to the American people, will make 18 markets more efficient, create jobs, and stimulate 19 competition, innovation, and technological progress 20 that benefit all Americans and fixture generations. 21 SEC. 3. CARBON DIVIDENDS AND CARBON FEE. 22 (a) IN GENERAL —The Internal Revenue Code of 23 1986 is amended by adding at the end the following new 24 subtitle: •HR 763 IH 1 "Subtitle L—CARBON DIVIDENDS 2 AND CARBON FEE "CIIAPTER 101. CARBON FEES. "CHAPTER 102. CARBON BORDER FEE ADJUSTMENT. 3 "CHAPTER 101—CARBON FEES "Sec. 9901. Definitions. "Sec. 9902. Carbon fee. "Sec. 9903. Emissions reduction schedule. "See. 9904. Fee on fluorinated greenhouse gases. "See. 9905. Decommissioning of Carbon Administration. "See. 9906. Carbon Capture and Sequestration. "Sec. 9907. Administrative authority. 4 "SEC. 9901. DEFINITIONS. 5 "For purposes of this subtitle: 6 "(a) ADMINISTRATOR. —The term `Administrator' 7 means the Administrator of the Environmental Protection 8 Agency. 9 "(b) CARBON DIOXIDE EQUIVALENT OR CO2-E.- 10 The term `carbon dioxide equivalent' or `CO2-e' means the 11 number of metric tons of carbon dioxide emissions with 12 the same global warming potential as one metric ton of 13 another greenhouse gas. 14 "(c) CARBON -INTENSIVE PRODUCT. —The term 'car- 15 bon -intensive product' means, as identified by the Sec- 16 retary by rrle- 17 "(1) any manufactured or agricultural product 18 which the Secretary in consultation with the Admin- 19 istrator determines is emissions -intensive and trade- •HR 763 IH 4 1 exposed, except that no covered fuel is a carbon-in- 2 tensive product, and 3 "(2) until such time that the Secretary promul- 4 gates rules identifying carbon -intensive products, the 5 following shall be considered carbon -intensive prod- 6 acts: iron, steel, steel mill products (including pipe 7 and tube), aluminum, cement, glass (including flat, 8 container, and specialty glass and fiberglass), pulp, 9 paper, chemicals, or industrial ceramics. 10 "(d) CARBON LEAKAGE. —The term `carbon leakage' 11 means an increase of global greenhouse gas emissions 12 which are substantially due to the relocation of greenhouse 13 gas sources from the United States to jurisdictions which 14 lack comparable controls upon greenhouse gas emissions. 15 "(e) COST OF CARBON OR CARBON COSTS. —The 16 term 'cost of carbon' or `carbon costs' means a national 17 or sub -national government policy which explicitly places 18 a price on greenhouse gas pollution and shall be limited 19 to either a tax on greenhouse gases or a system of cap- 20 and -trade. The cost of carbon is expressed as the price 21 per metric ton of CO2-e. 22 "(f) COVERED ENTITY. —The term `covered entity' 23 means- 24 "(1) in the case of crude oil— •HR 763 IH 5 1 "(A) a refinery operating in the United 2 States, and 3 "(B) any importer of any petroleum or pe- 4 troleum product into the United States, 5 "(2) in the case of coal- 6 "(A) any coal mining operation in the 7 United States, and 8 "(B) any importer of coal into the United 9 States, 10 "(3) in the case of natural gas- 11 "(A) any entity entering pipeline quality 12 natural gas into the natural gas transmission 13 system, and 14 "(B) any importer of natural gas into the 15 United States, 16 "(4) in the case of fluorinated gases any entity 17 required to report the emission of a fluorinated gas 18 under part 98 of title 40, Code of Federal Regula- 19 tions, and 20 "(5) any entity or class of entities which, as de- 21 termined by the Secretary, is transporting, selling, 22 or otherwise using a covered fuel in a manner which 23 emits a greenhouse gas to the atmosphere and which 24 has not been covered by the carbon fee, the •HR 763 IH 6 1 fluorinated greenhouse gas fee, or the carbon border 2 fee adjustment. 3 "(g) COVERED FULL. —The term `covered fuel' 4 means crude oil, natural gas, coal, or any other product 5 derived from crude oil, natural gas, or coal which shall 6 be used so as to emit greenhouse gases to the atmosphere. 7 "(h) CRUDE OIL. —The term `crude oil' means 8 unrefined petroleum 9 "(i) EXPORT. —The term `export' means to transport 10 a product from within the jurisdiction of the United States 11 to persons outside the United States. 12 "(j) FLUORINATED GREENHOUSE GAS. —The term 13 `fluorinated greenhouse gas' means sulfur hexafluoride 14 (SF6), nitrogen trifluoride (NF3), and any fluorocarbon 15 except for controlled substances as defined in subpart A 16 of part 82 of title 40, Code of Federal Regulation, and 17 substances with vapor pressures of less than 1 mm of Hg 18 absolute at 25 degrees. With these exceptions, `fluorinated 19 greenhouse gas' includes but is not limited to any 20 hydrofluorocarbon, any perfluorocarbon, any fully 21 fluorinated linear, branched or cyclic alkane, ether, ter- 22 tiary amine or aminoether, any perfluoropolyether, and 23 any hydrofluoropolyether. •HR 763 IH 7 1 "(k) Fossnh FUEL. —The term `fossil fuel' means 2 coal, coal products, petroleum, petroleum products, or nat- 3 ural gas. 4 "(1) FULL FUEL CYCLE GREENHOUSE GAS EMIS- 5 SIONS.—The term `full fuel cycle greenhouse gas emis- 6 sions' means the greenhouse gas content of a covered fuel 7 plus that covered fuel's upstream greenhouse gas emis- 8 sions. 9 "(m) GLOBAL WARMING POTENTIAL —The term 10 `global warming potential' means the ratio of the time- 11 integrated radiative forcing from the instantaneous release 12 of one kilogram of a trace substance relative to that of 13 one kilogram of carbon dioxide. 14 "(n) GREENHOUSE GAS. —The term `greenhouse gas' 15 means carbon dioxide (CO2), methane (CH4), nitrous 16 oxide (N20), sulfur hexafluoride (SF6), 17 hydrofluorocarbons (HFCs), perfluorocarbon (PFCs), and 18 other gases as defined by rule of the Administrator. 19 "(o) GREENHOUSE GAS CONTENT. —The term 20 `greenhouse gas content' means the amount of greenhouse 21 gases, expressed in metric tons of CO2-e, which would be 22 emitted to the atmosphere by the use of a covered fuel 23 and shall include, nonexclusively, emissions of carbon diox- 24 ide (CO2), nitrous oxide (N20), methane (CH4), and other •HR 763 IH 8 1 greenhouse gases as identified by rule of the Adminis- 2 trator. 3 "(p) GREENHOUSE GAS EFFECT. —The term `green- 4 house gas effect' means the adverse effects of greenhouse 5 gases on health or welfare caused by the greenhouse gas's 6 heat -trapping potential or its effect on ocean acidification. 7 "(q) 1MPORT.—Irrespective of any other definition in 8 law or treaty, the term `import' means to land on, bring 9 into, or introduce into any place subject to the jurisdiction 10 of the United States. 11 "(r) PETROLEUM. —The term `petroleum' means oil 12 removed from the earth or the oil derived from tar sands 13 or shale. 14 "(s) PRODUCTION GREENHOUSE GAS EMISSIONS.- 15 The term `production greenhouse gas emissions' means 16 the quantity of greenhouse gases, expressed in metric tons 17 of CO2-e, emitted to the atmosphere resulting from, non- 18 exclusively, the production, manufacture, assembly, trans- 19 portation, or financing of a product. 20 "(t) UPSTREAM GREENHOUSE GAS EMISSIONS.- 21 The term `upstream greenhouse gas emissions' means the 22 quantity of greenhouse gases, expressed in metric tons of 23 CO2-e, emitted to the atmosphere resulting from, non- 24 exclusively, the extraction, processing, transportation, fi- 25 nancing, or other preparation of a covered fuel for use. •HR 763 IH 9 1 "SEC. 9902. CARBON FEE. 2 "(a) CARBON FEE. —There is hereby imposed a car- 3 bon fee on any covered entity's emitting use, or sale or 4 transfer for an emitting use, of any covered fuel. 5 "(b) AMOUNT OF THE CARBON FEE. —The carbon 6 fee imposed by this section is an amount equal to- 7 "(1) the greenhouse gas content of the covered 8 fuel, multiplied by 9 "(2) the carbon fee rate. 10 "(c) CARBON FEE RATE. —For purposes of this sec- 11 tion- 12 "(1) IN GENERAL —The carbon fee rate, with 13 respect to any use, sale, or transfer during a cal- 14 endar year, shall be- 15 "(A) in the case of calendar year 2019, 16 $15, and 17 "(B) except as provided in paragraph (2), 18 in the case of any calendar year thereafter- 19 "(i) the carbon fee rate in effect 20 under this subsection for the preceding cal- 21 endar year, plus 22 "(ii) $10. 23 "(2) EXCEPTIONS.- 24 "(A) INCREASED CARBON FEE RATE 25 AFTER MISSED ANNUAL EMISSIONS REDUCTION 26 TARGET .—In the case of any year immediately •HR 763 IH 10 1 following a year for which the Secretary deter- 2 mines under 9903(b) that the actual emissions 3 of greenhouse gases from covered fuels exceeded 4 the emissions reduction target for the previous 5 year, paragraph (1)(B)(ii) shall be applied by 6 substituting '$15' for the dollar amount other- 7 wise in effect for the calendar year under such 8 paragraph. 9 "(B) CESSATION OF CARBON FEE RATE IN- 10 CREASE AFTER CERTAIN EMISSION REDUCTIONS 11 ACHIEVED. —In the case of any year imme- 12 diately following a year for which the Secretary 13 determines under 9903(b) that actual emissions 14 of greenhouse gases from covered fuels is not 15 more than 10 percent of the greenhouse gas 16 emissions from covered fuels during the year 17 2016, paragraph (1)(B)(ii) shall be applied by 18 substituting `$0' for the dollar amount other- 19 wise in effect for the calendar year under such 20 paragraph. 21 "(3) INFLATION ADJUSTMENT. —In the case of 22 any calendar year after 2019, each of the dollar 23 amounts in paragraphs (1)(A), (1)(B)(ii), and 24 (2) (A) shall be increased by an amount equal to- 25 "(A) such dollar amount, multiplied by •HR 763 IH 11 1 "(B) the cost -of -living adjustment deter- 2 mined under section 1(f)(3) for the calendar 3 year, determined by substituting `calendar year 4 2018' for `calendar year 2016' in subparagraph 5 (A) (ii) thereof. 6 "(d) EXEMPTION AND REFUND. —The Secretary 7 shall prescribe such rules as are necessary to ensure the 8 fee imposed by this section is not imposed with respect 9 to any nonemitting use, or any sale or transfer for a non- 10 emitting use, including rules providing for the refund of 11 any carbon fee paid under this section with respect to any 12 such use, sale, or transfer. 13 "(e) EXEMPTIONS.- 14 "(1) AGRICULTURE.- 15 "(A) FULL. —If any covered fuel or its de- 16 rivative is used on a farm for a farming pur- 17 pose, the Secretary shall pay (without interest) 18 to the ultimate purchaser of such covered fuel 19 or its derivative, the total amount of carbon 20 fees previously paid upon that covered fuel or 21 its derivative, as specified by rule of the Sec- 22 retary. 23 "(B) FARM, FARMING USE, AND FARMING 24 PURPOSE. —The terms `farm', `farming use', 25 and `farming purpose' shall have the respective •HR 763 IH 12 1 meanings given such terms under section 2 6420(e). 3 "(C) OTHER GREENHOUSE GASES EMIS- 4 SIONS FROM AGRICULTURE. —The carbon fee 5 shall not be levied upon non -fossil fuel green- 6 house gas emissions which occur on a farm. 7 "(2) ARMED FORCES OF THE UNITED 8 STATES. —If any covered fuel or its derivative is 9 used by the Armed Forces of the United States as 10 supplies for vessels of war, vehicles, or electrical 11 power generation equipment, the Secretary shall pay 12 (without interest) to the ultimate purchaser of such 13 covered fuel or its derivative, the total amount of 14 carbon fees previously paid upon that covered fuel or 15 its derivative, as specified by nile of the Secretary. 16 "SEC. 9903. EMISSIONS REDUCTION SCHEDULE. 17 "(a) IN GENERAL —An emissions reduction schedule 18 for greenhouse gas emissions from covered fuels is hereby 19 established, as follows: 20 "(1) REFERENCE YEAR —The greenhouse gas 21 emissions from covered fuels during the year 2016 22 shall be the reference amount of emissions and shall 23 be determined from the `Inventory of U.S. Green- 24 house Gas Emissions and Sinks• 1990-2016' pub- •HR 763 IH 13 1 lished by the Environmental Protection Agency in 2 April of 2018. 3 "(2) EMISSIONS REDUCTION TARGET. —The 4 first emission reduction target shall be for the year 5 2022. The emission target for each year thereafter 6 shall be the previous year's target emissions minus 7 a percentage of emissions during the reference year 8 determined in accordance with the following table: "Year Emissions Reduction Target 2016 Reference year 2020 to 2024 No emissions reduction target 2025 to 2034 5 percent of 2016 emissions per year 2035 to 2050 2.5 percent of 2016 emissions per year 9 "(b) ADMINISTRATIVE DETERMINATION.—NOt later 10 than 60 days after the beginning of each calendar year 11 beginning after the enactment of this section, the Sec- 12 retary, in consultation with the Administrator, shall deter- 13 mine whether actual emissions of greenhouse gases from 14 covered fuels exceeded the emissions reduction target for 15 the preceding calendar year. The Secretary shall make 16 such determination using the same greenhouse gas ac- 17 counting method as was used to determine the greenhouse 18 gas emissions in the `Inventory of U.S. Greenhouse Gas 19 Emissions and Sinks• 1990-2016' published by the Envi- 20 ronmental Protection Agency in April of 2018. •HR 763 IH 14 1 "SEC. 9904. FEE ON FLUORINATED GREENHOUSE GASES. 2 "(a) FLUORINATED GAS FEE. —A fee is hereby im- 3 posed upon any fluorinated greenhouse gas which is re- 4 wired to be reported under part 98 of title 40, Code of 5 Federal Regulations. 6 "(b) AMOUNT. —The fee to be paid by the covered 7 entity required to so report shall be an amount equal to- 8 "(1) the total amount, in metric tons of CO2- 9 e, of emitted fluorinated greenhouse gases (or, in the 10 case of a supplier, emissions that would result deter- 11 mined under the rules of such part), multiplied by 12 "(2) an amount equal to 10 percent of the car- 13 bon fee rate in effect under section 9902(d)(1) for 14 the calendar year of such emission. 15 "SEC. 9905. DECOMMISSIONING OF CARBON FEE. 16 "(a) IN GENERAL —At such time that- 17 "(1) the Secretary determines under 9903(b) 18 that actual emissions of greenhouse gases from cov- 19 ered fuels is not more than 10 percent of the green- 20 house gas emissions from covered fuels during the 21 year 2016, and 22 "(2) the monthly carbon dividend payable to an 23 adult eligible individual has been less than $20 for 24 3 consecutive years, 25 the Secretary shall decommission in an orderly manner all 26 bureaus and programs associated with administering the •HR 763 IH 15 1 carbon fee, the carbon border fee adjustment, and the Car- 2 bon Dividend Trust Fund. 3 "(b) INFLATION ADJUSTMENT. —In the case of any 4 calendar year after 2020, the $20 amount under sub- 5 section (a) (2) shall be increased by an amount equal to- 6 "(1) such dollar amount, multiplied by 7 "(2) cost -of -living adjustment determined under 8 section 1(f)(3) for the calendar year, determined by 9 substituting `calendar year 2017' for `calendar year 10 2016' in subparagraph (A)(ii) thereof. 11 "SEC. 9906. CARBON CAPTURE AND SEQUESTRATION. 12 "(a) IN GENERAL —The Secretary, in consultation 13 with the Administrator and the Secretary of Energy, shall 14 prescribe regulations for making payments as provided in 15 subsection (b) to qualified facilities which capture and se- 16 quester qualified carbon dioxide. 17 "(b) PAYMENT AMOUNTS.- 18 "(1) IN GENERAL —The Secretary shall make 19 payments to a qualified facility in the same manner 20 as if such payment was a refired of an overpayment 21 of the carbon fee imposed by section 9902, in cases 22 in which such qualified facility- 23 "(A) uses any covered fuel- 24 "(i) with respect to which the carbon 25 fee has been paid, and •HR 763 IH 16 1 "(ii) which results in the emission of 2 qualified carbon dioxide, 3 "(B) captures such emitted qualified car- 4 bon dioxide, and 5 "(C) (i) sequesters such qualified carbon di- 6 oxide in a manner which is safe, permanent, 7 and in compliance with any applicable local, 8 State, and Federal laws, or 9 "(ii) utilizes such qualified carbon dioxide 10 in a mariner provided in paragraph (3)(C). 11 "(2) AMOUNT OF REFUND. —The payment de- 12 termined under this section shall be an amount 13 equal to the lesser of- 14 "(A) (i) the adjusted metric tons of quali- 15 fied carbon dioxide captured and sequestered or 16 utilized, multiplied by 17 "(ii) the carbon fee rate during the year in 18 which the carbon fee was imposed by section 19 9902 upon the covered fuel to which such car- 20 bon dioxide relates, or 21 "(B) the amount of the carbon fee imposed 22 by section 9902 with respect to such covered 23 fuel. 24 "(3) DEFINITIONS AND SPECIAL RULES. —For 25 purposes of this section— •HR 763 IH 17 1 "(A) QUALIFIED CARBON DIOXIDE; QUALI- 2 FIED FACILITTY.- 3 "(i) QUALIFIED CARBON DIOXIDE - 4 The term `qualified carbon dioxide' has the 5 same meaning given such term under see- 6 tion 45Q(b). 7 "(ii) QUALIFIED FACILITY. —The term 8 `qualified facility' means any industrial fa- 9 cility at which carbon capture equipment is 10 placed in service. 11 "(B) ADJUSTED TOTAL METRIC TONS.- 12 The adjusted total metric tons of qualified car- 13 bon dioxide captured and sequestered or utilized 14 shall be the total metric tons of qualified carbon 15 dioxide captured and sequestered or utilized, re- 16 duced by the amount of any carbon dioxide like- 17 ly to escape and be emitted into the atmosphere 18 due to imperfect storage technology or other- 19 wise, as determined by the Secretary in con- 20 sultation with the Administrator. 21 "(C) UTILIZATION. —The Secretary, in 22 consultation with the Administrator, shall es- 23 tablish regulations providing for the methods 24 and processes by which qualified carbon dioxide 25 may be utilized so as to remove that qualified •HR 763 IH 18 1 dioxide safely and permanently from the atmos- 2 phere. Utilization may include the production of 3 substances such as but not limited to plastics 4 and chemicals. Such regulations shall minimize 5 the escape or farther emission of the qualified 6 carbon dioxide into the atmosphere. 7 "(D) SEQUESTRATION. —Not later 540 8 days after the date of the enactment of this sec- 9 tion, the Secretary, in consultation with the Ad- 10 ministrator, shall prescribe regulations identi- 11 fying the conditions under which carbon dioxide 12 may be safely and permanently sequestered. 13 "(4) COORDINATION WITH CREDIT FOR CARBON 14 DIOXIDE SEQUESTRATION. At such time that the 15 Secretary prescribes regulations implementing this 16 section, no payment under this section shall be al- 17 lowed to a taxpayer to whom a credit has been al- 18 lowed for any taxable year under section 45Q. 19 "SEC. 9907. ADMINISTRATIVE AUTHORITY. 20 "(a) IN GENERAL —The Secretary in consultation 21 with the Administrator shall prescribe such regulations, 22 and other guidance, as may be necessary to carry out the 23 purposes of this subtitle and assess and collect the carbon 24 fee imposed by section 9902 and the fluorinated green- 25 house gas fee imposed by section 9904. •HR 763 IH 19 1 "(b) SPE CIFICALLY —Such regulations and guidance 2 shall include- 3 "(1) the identification of an effective point in 4 the production, distribution, or use of a covered fuel 5 or fluorinated greenhouse gas for collecting such car- 6 bon fee or fluorinated greenhouse gas fee, in such a 7 manner so as to minimize administrative burden and 8 maximize the extent to which frill fuel cycle green- 9 house gas emissions from covered fuels or 10 fluorinated greenhouse gases have the carbon fee or 11 fluorinated greenhouse gas fee levied upon them, 12 "(2) the identification of covered entities which 13 shall be liable for the payment of the carbon fee or 14 the fluorinated greenhouse gas fee, 15 "(3) requirements for the monthly payment of 16 such fees, 17 "(4) as may be necessary or convenient, rules 18 for distinguishing between different types of covered 19 fuels, 20 "(5) as may be necessary or convenient, rules 21 for distinguishing between a covered fuel's green- 22 house gas content and its upstream greenhouse gas 23 emissions, 24 "(6) rules to ensure that no covered fuel or 25 fluorinated greenhouse gas has the carbon fee, •HR 763 IH 20 1 fluorinated greenhouse gas fee, or carbon border fee 2 adjustment imposed upon it more than once, and 3 "(7) rules to ensure that the domestic imple- 4 mentation of the carbon fee and the fluorinated 5 greenhouse gas fee coordinate with the implementa- 6 tion of the carbon border fee adjustment of chapter 7 102. 8 "CHAPTER 102—CARBON BORDER FEE 9 ADJUSTMENT "Sec. 9908. Carbon border fee adjustment. "Sec. 9909. Administration of the carbon border fee adjustment. "Sec. 9910. Allocation of carbon border fee adjustment revenues. 10 "SEC. 9908. CARBON BORDER FEE ADJUSTMENT. 11 "(a) IN GENERA", —The fees imposed by, and re- 12 funds allowed under, this section shall be referred to as 13 'the carbon border fee adjustment'. 14 "(b) PURPOSE. —The purpose of the carbon border 15 fee adjustment is to protect animal, plant, and human life 16 and health, to conserve exhaustible natural resources by 17 preventing carbon leakage, and to facilitate the creation 18 of international agreements. 19 "(c) IMPORTED COVERED FUELS FEE. —In the case 20 of any person that imports into the United States any cov- 21 ered fuel, there shall be imposed a fee equal to the excess 22 (if any) of- 23 "(1) an amount equal to— •HR 763 IH 21 1 "(A) the amount of full fuel cycle green- 2 house gas emissions of such fuel, multiplied by 3 "(B) the carbon fee rate in effect for the 4 year in which such fuel is imported, over 5 "(2) the total foreign cost of carbon carried by 6 such fuel. 7 "(d) IMPORTED CARBON -INTENSIVE PRODUCTS 8 FEE. —In the case of any person that imports into the 9 United States any carbon -intensive products, there shall 10 be imposed a fee equal to the excess (if any) of- 11 "(1) an amount equal to- 12 "(A) production greenhouse gas emissions 13 of such product, multiplied by 14 "(B) the carbon fee rate in effect for the 15 year in which the production greenhouse gas 16 emissions of such product were emitted into the 17 atmosphere, over 18 "(2) the total foreign cost of carbon carried by 19 such product. 20 "(e) REFUND ON EXPORTS FROM UNITED 21 STATES.- 22 "(1) CARBON -INTENSIVE PRODUCTS. —Under 23 regulations prescribed by the Secretary, there shall 24 be allowed a credit or refund (without interest) to 25 exporters of carbon -intensive products manufactured •HR 763 IH 22 1 or produced in the United States an amount equal 2 to the excess (if any) of- 3 "(A) an amount equal to- 4 "(i) the production greenhouse gas 5 emissions of the exported carbon -intensive 6 product, multiplied by 7 "(ii) the carbon fee rate during the 8 year in which the carbon fee or fluorinated 9 greenhouse gas fee was paid upon the pro- 10 duction greenhouse gas emissions of the 11 exported carbon -intensive product, over 12 "(B) any total cost of carbon to be levied 13 upon the carbon -intensive product by any juris- 14 diction to which the carbon -intensive product is 15 to be imported. 16 Any such credit or refired shall be allowed in the 17 same manner as if it were an overpayment of the fee 18 imposed by section 9902 or 9904. The Secretary 19 shall establish fair, timely, impartial, and as nec- 20 essary confidential procedures by which any exporter 21 of any product from the United States may petition 22 the Secretary to include that exported product on 23 the list of carbon -intensive products. 24 "(2) COVERED FUELS. —Under regulations pre- 25 scribed by the Secretary, in the case of a covered •HR 763 IH 23 1 fuel produced in the United States with respect to 2 which the fee under section 9902 was paid, there 3 shall be allowed as a credit or refund (without inter- 4 est) to any exporter of such covered fuels an amount 5 equal to the excess (if any) of- 6 "(A) an amount equal to- 7 "(i) the full fuel cycle greenhouse gas 8 emissions of the covered fuel, multiplied by 9 "(ii) the carbon fee rate at the time 10 the carbon fee was paid upon the full fuel 11 cycle greenhouse gas emissions of the ex- 12 ported covered fuel, over 13 "(B) any total cost of carbon to be levied 14 upon the covered fuel by a jurisdiction to which 15 the carbon -intensive product is to be imported. 16 Any such credit or refund shall be allowed in the 17 same manner as if it were an overpayment of tax 18 imposed by section 9902. 19 "(f) DEFINITIONS. —For purposes of this section- 20 "(1) FOREIGN COST OF CARBON; FOREIGN CAR- 21 BON COSTS. —The term `foreign cost of carbon' or 22 `foreign carbon cost' means the cost of any laws of 23 a foreign jurisdiction which impose a system of cap- 24 and -trade with respect to, or a tax or fee on, green- •HR 763 IH 24 1 house gas. Such cost shall be determined and ex- 2 pressed as a price per metric ton of CO2-e. 3 "(2) TOTAL COST OF CARBON CARRIED. —The 4 term `total cost of carbon carried' means an amount 5 equal to- 6 "(A) the production greenhouse gas emis- 7 sions of a carbon -intensive product or the full 8 fuel cycle greenhouse gas emissions of a covered 9 fuel, multiplied by 10 "(B) the cost of carbon with respect to 11 such product or fuel, reduced by any amount 12 refirnded with respect to such product or fuel 13 by a foreign jurisdiction. 14 The total cost of carbon carried shall be expressed 15 as price in United States dollars. 16 "(3) TOTAL FOREIGN COST OF CARBON CAR- 17 RIED.—The term `total foreign cost of carbon car- 18 ried' means an amount equal to- 19 "(A) the production greenhouse gas emis- 20 sions of a carbon -intensive product, or the full 21 fuel cycle greenhouse gas emissions of a covered 22 fuel, multiplied by 23 "(B) the foreign cost of carbon with re- 24 spect to such product or fuel, reduced by the •HR 763 IH 25 1 amount refunded with respect to such product 2 or fuel by a foreign jurisdiction. 3 The total foreign cost of carbon carried shall be ex- 4 pressed as price in United States dollars. 5 "SEC. 9909. ADMINISTRATION OF THE CARBON BORDER 6 FEE ADJUSTMENT. 7 "(a) GENERALLY —The Secretary in consultation 8 with the Administrator shall prescribe regulations and 9 guidance which implement the carbon border fee adjust- 10 meat under section 9908. 11 "(b) COLLABORATION. —In determining the produc- 12 tion greenhouse gas emissions of an imported carbon-in- 13 tensive product, the upstream greenhouse gas emissions 14 of an imported covered fuel, the full fuel cycle greenhouse 15 gas emissions of an imported covered fuel, or the foreign 16 cost of carbon, or otherwise administering the carbon bor- 17 der fee adjustment, it is the sense of Congress that the 18 Secretary should collaborate with authorized officers of 19 any jurisdiction, including sub -national governments, af- 20 fected by the carbon border fee adjustment. 21 "(c) METHODOLOGY. —In determining the production 22 greenhouse gas emissions of an imported carbon -intensive 23 product, the upstream greenhouse gas emissions of an im- 24 ported covered fuel, the full fuel cycle greenhouse gas 25 emissions of an imported covered fuel, or the foreign cost •HR 763 IH 26 1 of carbon, the Secretary shall use reliable methodologies, 2 which- 3 "(1) as may be necessary or convenient- 4 "(A) distinguish between different types of 5 covered fuels, 6 "(B) distinguish between a covered fuel's 7 greenhouse gas content and that covered fuel's 8 upstream greenhouse gas emissions, 9 "(C) distinguish between the different 10 types of greenhouse gas emissions which com- 11 pose a covered fuel's upstream greenhouse gas 12 emissions or greenhouse gas content, as well as 13 the various processes which produced those 14 emissions, and 15 "(D) distinguish between the different 16 types of greenhouse gas emissions which com- 17 pose a carbon -intensive product's production 18 greenhouse gas emissions, as well as the various 19 processes which produced those emissions, 20 "(2) ensure that no covered fuel, covered 21 fluorinated greenhouse gas, or carbon -intensive prod- 22 uct has the carbon fee, the fluorinated greenhouse 23 gas fee, or the border fee adjustment imposed upon 24 it more than once, •HR 763 IH 27 1 "(3) ensure that the implementation of the bor- 2 der carbon adjustment aligns with the carbon fee 3 and the fluorinated gas fee, 4 "(4) in the case of incomplete data, rely upon 5 the best available methodologies for interpolating 6 data gaps, and 7 "(5) are consistent with international treaties 8 and agreements. 9 "(d) SCHEDULE. —The Secretary shall determine- 10 "(1) not later than 3 years after the date of the 11 enactment of this section, the production greenhouse 12 gas emissions of imported carbon -intensive products, 13 "(2) not later than 180 days after the date of 14 the enactment of this section, the full fuel cycle 15 greenhouse gas emissions and the upstream green- 16 house gas emissions of every imported covered fuel, 17 and 18 "(3) not later than 3 years after the date of the 19 enactment of this section, the foreign cost of carbon 20 in all jurisdictions. 21 "(e) PROCEDURE. —The Secretary shall establish 22 fair, timely, impartial, and as necessary confidential proce- 23 dunes by which the importer of any carbon -intensive prod- 24 uct or any covered fuel may petition the Secretary to re- 25 vise the Secretary's determination of the production green- •HR 763 IH 28 1 house gas emissions, full fuel cycle greenhouse gas emis- 2 sions, or upstream greenhouse gas emissions of that im- 3 porter's imported covered fuel or imported carbon-inten- 4 sive product, or the foreign cost of carbon carried by that 5 importer's imported carbon -intensive product. 6 "(f) SHIPMENTS FROM THE UNPTED STATES TO THE 7 TERRITORIES OF THE UNITED STATES.—Notwith- 8 standing any other treaty, law, or policy, shipments of cov- 9 ered fuels or carbon -intensive products from the United 10 States to Guam, the United States Virgin Islands, Samoa, 11 Puerto Rico, and the Northern Mariana Islands shall be 12 eligible for a refired of the carbon fee under section 13 9908(e). 14 "(g) IMPORTS TO THE TERRITORIES OF THE UNrTED 15 STATES. —Notwithstanding any other treaty, law, or pol- 16 icy, imports of covered fuels or carbon -intensive products 17 to Guam, the United States Virgin Islands, Samoa, Puerto 18 Rico, and the Northern Mariana Islands shall not be sub- 19 ject to Section 9908(c) or 9908(d)." 20 "SEC. 9910. ALLOCATION OF CARBON BORDER FEE ADJUST- 21 MENT REVENUES. 22 "The revenues collected under this chapter may be 23 used to supplement appropriations made available in fiscal 24 years 2020 and thereafter— •HR 763 IH 29 1 "(1) to U.S. Customs and Border Protection, in 2 such amounts as are necessary to administer the 3 carbon border fee adjustment, then 4 "(2) to the Department of Treasury, in such 5 amounts as are necessary to allow refirnds under 6 section 9908(e) to exporters of carbon -intensive 7 products and exporters of covered fuels.". 8 (b) COORDINATION WITH CARBON OXIDE SEQUES- 9 TRATION CREDIT. —Section 45Q(f) is amended by adding 10 at the end the following new paragraph: 11 "(8) COORDINATION WITH CARBON CAPTURE 12 AND SEQUESTRATION PAYMENTS. —No credit shall 13 be allowed under this section to a taxpayer which 14 has received any payment under section 9906.". 15 (c) TREATIES AND INTERNATIONAL NEGO'TIA- 16 'I`IONS.- 17 (1) CONFORMANCE WITH INTERNATIONAL 18 TREATIES. —In the case that the Appellate Body of 19 the World Trade Organization, or any other authori- 20 tative international treaty interpreter, shall find any 21 portion of the carbon border fee adjustment under 22 chapter 102 of the Internal Revenue Code of 1986 23 to violate any treaty to which the United States is 24 a party, the Secretary of the Treasury is authorized 25 to alter any aspect of such carbon border fee adjust- •HR 763 IH 30 1 ment so as to bring the carbon border fee acljust- 2 ment into conformance with international law. 3 (2) INTERNATIONAL NEGOTIATIONS. —The Con- 4 gross finds the international mitigation of green- 5 house gas emissions to be of national importance. 6 Therefore, the Congress encourages the Secretary of 7 State, or the Secretary's designee, to commence and 8 complete negotiations with other nations with the 9 goal of forming treaties, environmental agreements, 10 accords, partnerships or any other instrument that 11 effectively reduces global greenhouse gas emissions 12 to 10 percent of 2016 levels by 2050 and which re- 13 spect the principle of common but differentiated re- 14 sponsibilities and respective capabilities. 15 (3) SUSPENSION OF THE CARBON BORDER FEE 16 ADJUSTMENT. Any part of the carbon border fee 17 adjustment shall be suspended, in whole or in 18 part,- 19 (A) by treaty or other international agree- 20 ment which includes provisions for the suspen- 21 sion of the carbon border fee adjustment, in 22 whole or in part, with any party signatory to 23 the treaty or other international agreement, or 24 (B) by a finding of the Secretary that a ju- 25 risdiction of importation has implemented poli- •HR 763 IH 31 1 cies which, in the case of high emitting coun- 2 tries, reduce greenhouse gas emissions at a rate 3 at least equivalent to United States greenhouse 4 gas emission reductions, or, in the case of low 5 emitting countries, prevent the increase in 6 greenhouse gas emissions. 7 Any such finding shall be reviewed at least every 3 8 years and amended or revoked as required. 9 SEC. 4. ESTABLISHMENT OF THE CARBON DIVIDEND TRUST 10 FUND. 11 (a) IN GENERAL —Subchapter A of chapter 98 of the 12 Internal Revenue Code of 1986 is amended by adding at 13 the end the following: 14 "SEC. 9512. CARBON DIVIDEND TRUST FUND. 15 "(a) ESTABLISHMENT AND FUNDING. —There is 16 hereby established in the Treasury of the United States 17 a trust firnd to be known as the `Carbon Dividend Trust 18 Fund', consisting of such amounts as may be appropriated 19 to such trust firnd as provided for in this section. 20 "(b) TRANSFERS TO THE CARBON DIVIDEND TRUST 21 FUND. —There is hereby appropriated to the Carbon Divi- 22 dend Trust Fund amounts equal to the fees received into 23 the Treasury less any amounts refunded or paid under 24 section 9902(d) or 9906 of chapter 101 for each month. •HR 763 IH 32 1 "(c) EXPENDITURES. Amounts in the trust fund 2 shall be available for the following purposes: 3 "(1) ADMINISTRATIVE EXPENSES. —So much of 4 the expenses necessary to administer the Carbon 5 Dividend Trust Fund for each year, as does not ex- 6 ceed- 7 "(A) in the case of the first 5 calendar 8 years ending after the date of the enactment of 9 this section, the administrative expenses for any 10 year may not exceed 8 percent of amounts ap- 11 propriated to the Carbon Dividend Trust Fund 12 during such year, and 13 "(B) in the case of any calendar year 14 thereafter, 2 percent of the 5-year rolling aver- 15 age of the amounts appropriated to the Carbon 16 Dividend Trust Fund, and 17 "(2) OTHER ADMINISTRATIVE EXPENSES. —So 18 much of the expenses as are necessary to administer 19 chapter 101 for any year as does not to exceed 0.60 20 percent of the amounts appropriated to the Carbon 21 Dividend Trust Fund for the previous year, and fur- 22 ther limited as follows: 23 "(A) The Department of the Treasury. 24 "(B) The Social Security Administration. •HR 763 IH 33 1 "(C) The Environmental Protection Agen- 2 cy. 3 "(D) Department of State. 4 "(3) CARBON DIVIDEND PAYMENTS.- 5 "(A) IN GENERAL —From the amounts in 6 the Carbon Dividend Trust Fund made avail- 7 able under paragraphs (1) and (2) of this sub- 8 section for any year, the Secretary shall for 9 each month beginning more than 270 days after 10 the date of the enactment of the Energy Inno- 11 vation and Carbon Dividend Act of 2019, make 12 carbon dividend payments to each eligible indi- 13 vidual. 14 "(B) PRO-RATA SHARE. —A carbon divi- 15 dend payment is one pro-rata share for each 16 adult, and half a pro-rata share for each child 17 under 19 years old, of amounts available for the 18 month in the Carbon Dividend Trust Fund. 19 "(C) ELIGIBLE INDIVIDUAL. —The term 20 `eligible individual' means, with respect to any 21 month, any natural living person who has a 22 valid Social Security number or taxpayer identi- 23 fication number and is a citizen or lawful resi- 24 dent of the United States (other than any indi- 25 vidual who is a citizen of any possession of the •HR 763 IH 34 1 United States and whose bona fide residence is 2 outside of the United States). The Secretary is 3 authorized to verify an individual's eligibility to 4 receive a carbon dividend payment. 5 "(D) FEE TREATMENT OF PAYMENTS.- 6 Amounts paid under this subsection shall be in- 7 cludible in gross income. 8 "(E) FEDERAL PROGRAMS AND FEDERAL 9 ASSISTED PROGRAMS. —The carbon dividend 10 amount received by any individual shall not be 11 taken into account as income and shall not be 12 taken into account as resources for purposes of 13 determining the eligibility of such individual or 14 any other individual for benefits or assistance, 15 or the amount or extent of benefits or assist- 16 ance, under any Federal program or under any 17 State or local program financed in whole or in 18 part with Federal funds. 19 "(F) ADVANCE PAYMENT. —The Secretary 20 shall transfer to the Carbon Dividend Trust 21 Fund such amounts as are necessary for the 22 disbursement of an advanced carbon dividend to 23 all eligible individuals as follows: 24 "(i) An advanced carbon dividend 25 shall be the same as the anticipated first •HR 763 IH 35 1 carbon dividend required to be distributed 2 under subparagraph (A) and shall be dis- 3 tributed the month prior to the first collec- 4 tion of the carbon fee. 5 "(ii) Total amounts disbursed as ad- 6 vanced carbon dividends shall be deducted 7 from the carbon dividends on a pro-rata 8 basis over the first 3 years after the dis- 9 bursement of the first carbon dividends. 10 "(d) ADMINISTRATIVE AUTHORITY. —The Secretary 11 shall promulgate rules, guidance, and regulations useful 12 and necessary to implement the Carbon Dividend Trust 13 Fund.". 14 (b) CLERICAL AMENDMENT. —The table of sections 15 for subchapter A of chapter 98 of such Code is amended 16 by adding at the end the following new item: "See. 9512. Carbon Dividend Trust Fund.". 17 SEC. 5. LIMITED DISCLOSURE OF INFORMATION. 18 Section 6103(1) of the Internal Revenue Code of 1986 19 is amended by adding at the end the following new para- 20 graphs: 21 "(23) LIMITED DISCLOSURE OF IDENTITY IN- 22 FORMATION RELATING TO CARBON DIVIDEND PAY- 23 MENTS.- 24 "(A) DEPARTMENT OF TREASURY.—Indi- 25 vidual identity information shall, without writ- •HR 763 IH 36 1 ten request, be open to inspection by or diselo- 2 sure to officers and employees of the Depart- 3 ment of the Treasury whose official duties re- 4 quire such inspection or disclosure for purposes 5 of administering section 9512 (relating the Car- 6 bon Dividend Trust Fund). 7 "(B) COMMISSIONER OF SOCIAL SECU- 8 RITY.—The Commissioner of Social Security 9 shall, on written request, disclose to officers 10 and employees of the Department of the Treas- 11 ury individual identity information which has 12 been disclosed to the Social Security Adminis- 13 tration as is necessary to administer section 14 9512. 15 "(C) RESTTRICTION ON DISCLOSURE.—In- 16 formation disclosed under this paragraph shall 17 be disclosed only for purposes of, and to the ex- 18 tent necessary in, carrying out section 9512.". 19 SEC. 6. NATIONAL ACADEMY OF SCIENCES REVIEW OF CAR- 20 BON FEE AND EMISSIONS REDUCTION 21 SCHEDULE. 22 (a) IN GENERAL —Not later than 10 years after the 23 date of the enactment of this Act, the Secretary of Energy 24 shall enter into an agreement with the National Academy 25 of Sciences to prepare a report relating to the carbon fee •HR 763 IH 37 1 imposed by section 9902 of the Internal Revenue Code of 2 1986 and the emissions reductions schedule established 3 under section 9903 of such Code. 4 (b) REPORT REQUIREMENTS. —Such report shall- 5 (1) assess the efficiency and effectiveness of the 6 carbon fee in achieving the emissions reduction tar- 7 gets set forth in section 9903 of such Code; 8 (2) describe and make recommendations on 9 whether the carbon fee rate and annual increases 10 prescribed by section 9902(c) of such Code should 11 be adjusted in order to optimize the efficiency and 12 effectiveness of this Act in achieving the emissions 13 reduction targets set forth in section 9903 of such 14 Code; 15 (3) describe the potential of the carbon fee to 16 achieve future emissions targets set forth in section 17 9903(a) of such Code through the year 2050; 18 (4) describe and evaluate the effectiveness of 19 the carbon fee in reducing emissions from key sec- 20 tors of the economy, including sectors of the econ- 21 omy that have decreased their carbon emissions, sec- 22 tors of the economy that have increased their carbon 23 emissions, and sectors of the economy in which car- 24 bon emissions have not changed; •HR 763 IH 38 1 (5) make findings and recommendations to 2 Federal departments and agencies and to Congress 3 on actions that could be taken to reduce carbon 4 emissions in the sectors of the economy in which 5 carbon emissions have not decreased; 6 (6) make findings and recommendations on ad- 7 justing regulations enacted under the Clean Air Act 8 and other Federal laws that affect economic sectors 9 achieving the emissions reduction targets set forth in 10 section 9903 of such Code; and 11 (7) provide an assessment of any other factors 12 determined to be material to the program's effi- 13 ciency and effectiveness in achieving the goals set 14 forth in this act. 15 (c) REPORT MADE PUBLICLY AVAILABLE. —Not later 16 than 10 years after the date of the enactment of this Act, 17 the Secretary of Energy shall submit to Congress the re- 18 port required under subsection (a). Such report shall be 19 made electronically available to the public and open to 20 public comment for at least 60 days before the final sub- 21 mission to Congress. 22 SEC. 7. IMPACT OF CARBON FEE ON BIOMASS USE AND 23 CARBON SINKS. 24 (a) STUDY OF BIOIViASs.—The Secretary of Energy 25 shall enter into an agreement with the National Academy •HR 763 IH 39 1 of Sciences and the Administrator of the Environmental 2 Protection Agency to conduct a study, make recommenda- 3 tions, and submit a report regarding the impact of the 4 carbon fee on the use of biomass as an energy source and 5 the resulting impacts on carbon sinks and biodiversity. 6 (b) STUDY REQUIREMENTS. —The study conducted 7 under subsection (a) by the National Academy of Sciences 8 shall include analysis, documentation, and determinations 9 on- 10 (1) the carbon fee and its impact on the use of 11 biomass as an energy source and greenhouse gas 12 emissions from the use of biomass as an energy 13 source; 14 (2) the impacts of the use of biomass as an en- 15 ergy source on carbon sinks and biodiversity; and 16 (3) the various types of biomass that are being 17 used as an energy source. 18 (c) RECOMMENDATIONS. —Based on the findings and 19 conclusions of the study, the National Academy of 20 Sciences shall make recommendations to Federal depart- 21 ments and agencies and to Congress. The recommenda- 22 tions shall include any actions that should be taken to 23 mitigate impacts of the carbon fee on- 24 (1) increasing greenhouse gas emissions from 25 the use of biomass as an energy source; and •HR 763 IH 40 1 (2) degradation of carbon sinks and biodiversity 2 relating to the use of biomass as an energy source. 3 (d) REPORT. —The National Academy of Sciences 4 shall prepare a report that includes any findings and rec- 5 ommendations made pursuant to this section and, not 6 later than 18 months after the date of the enactment of 7 this Act, make such report electronically available to the 8 public. 9 SEC. 8. AMENDMENTS TO THE CLEAN AIR ACT. 10 (a) IN GENERAL —Title III of the Clean Air Act (42 11 U.S.C. 7601) is amended by adding at the end the fol- 12 lowing: 13 "SEC. 330. SUSPENSION OF REGULATION OF FUELS AND 14 EMISSIONS BASED ON GREENHOUSE GAS EF- 15 FECTS. 16 "(a) FUELS. —Unless specifically authorized in sec- 17 tion 202, 211, 213, or 231 or this section, if a carbon 18 fee is imposed by section 9902 or 9908 of the Internal 19 Revenue Code of 1986 with respect to a covered fuel, the 20 Administrator shall not enforce any rule limiting the emis- 21 sion of greenhouse gases from the combustion of that fuel 22 under this Act (or impose any requirement on any State 23 to limit such emission) on the basis of the emission's 24 greenhouse gas effects. •HR 763 IH 41 1 "(b) EMISSIONS. —Unless specifically authorized in 2 section 202, 211, 213, or 231 or this section, if a fee is 3 imposed by section 9904 of the Internal Revenue Code of 4 1986 with respect to a fluorinated greenhouse gas, the Ad- 5 ministrator shall not enforce any rule limiting such gas 6 under this Act (or impose any requirement on any State 7 to limit such gas) on the basis of the greenhouse gas ef- 8 fects of such gas. 9 "(c) AUTHORIZED REGULATION. —Notwithstanding 10 subsections (a) and (b), nothing in this section limits the 11 Administrator's authority pursuant to any other provision 12 of this Act- 13 "(1) to limit the emission of any greenhouse 14 gas because of any adverse impact on health or wel- 15 fare other than its greenhouse gas effects; 16 "(2) in limiting emissions as described in para- 17 graph (1), to consider the collateral benefits of lim- 18 iting the emissions because of greenhouse gas ef- 19 fects; 20 "(3) to limit the emission of black carbon or 21 any other pollutant that is not a greenhouse gas 22 that the Administrator determines by rule has heat- 23 trapping properties; or •HR 763 IH 42 1 "(4) to take any action with respect to any 2 greenhouse gas other than limiting its emission, in- 3 cluding- 4 "(A) monitoring, reporting, and record- 5 keeping requirements; 6 "(B) conducting or supporting investiga- 7 tions; and 8 "(C) information collection. 9 "(d) EXCEPTION FOR CERTAIN GREENHOUSE GAS 10 EMISSIONS. —Notwithstanding subsections (a) and (b), 11 nothing in this section limits the Administrator's authority 12 to regulate greenhouse gas emissions from- 13 "(1) sources that- 14 "(A) are subject to subpart 0000 or 15 0000a of part 60 of title 40, Code of Federal 16 Regulations, as in effect or January 1, 2020; or 17 "(B) would be subject to such subpart 18 0000 or subpart 0000a if such subpart ap- 19 plied regardless of the date on which construc- 20 tion, modification, or reconstruction of the 21 source involved commenced; or 22 "(2) POTW Treatment Plants (as defined in 23 section 403.3(r) of title 40, Code of Federal Regula- 24 tions). 25 "(e) SUSPENSION EXPIRATION.— •HR 763 IH 43 1 "(1) DETERMINATION. —The Administrator 2 shall make a determination by March 30, 2030, and 3 no less than once every five years thereafter, based 4 on the determination required by section 9903(b) of 5 the Internal Revenue Code of 1986, as to whether 6 cumulative greenhouse gas emissions from covered 7 fuels subject to taxation under section 9902 of such 8 Code during the period from calendar year 2022 9 through the calendar year preceding the determina- 10 tion exceed the cumulative emissions for that period 11 that would have occurred if the emission reduction 12 targets in section 9903(a)(2) of such Code were met. 13 "(2) CONSEQUENCE OF CUMULATIVE EMIS- 14 SIONS EXCEEVANCE.—If the Administrator deter- 15 mines under paragraph (1) that cumulative green- 16 house gas emissions from covered fuels subject to 17 tax under section 9902 of the Internal Revenue 18 Code of 1986 exceed the cumulative emissions for 19 the period covered by the determination that would 20 have occurred if the emission reduction targets in 21 section 9903(a)(2) of such Code were met, then the 22 prohibitions in subsection (a) of this section, and in 23 section 211(c)(5) of this Act, shall cease to apply. 24 "(f) ASSURING ENVIRONMENTAL INTEGRITY.— •HR 763 IH 44 1 "(1) AUTHORITY. -If the Administrator deter- 2 mines pursuant to subsection (e)(1) of this section 3 that the emission reduction targets in section 9903 4 (a)(2) of the Internal Revenue Code of 1986 are not 5 met- 6 "(A) subsections (a) and (b) shall cease to 7 apply; and 8 "(B) the Administrator shall- 9 "(i) issue such regulations as the Ad- 10 ministrator deems necessary to bring 11 greenhouse gas emissions from covered 12 fuels subject to taxation under section 13 9902 of the Internal Revenue Code of 14 1986 to levels that are at or below the 15 emission reductions targets in section 16 9903(a)(2) of such Code; and 17 "(ii) require in such regulations that 18 additional reductions in greenhouse gas 19 emissions are achieved to fully compensate 20 for any amount by which greenhouse gas 21 emissions from covered fuels subject to 22 taxation under section 9902 of such Code 23 have exceeded the targets in section 24 9903(a)(2) of such Code. •HR 763 IH 45 1 "(2) DEADLINE FOR FINALIZING REGULA- 2 TIONS.—The Administrator shall finalize any regula- 3 tions required by paragraph (1) not later than two 4 years after the Administrator makes the relevant de- 5 termination pursuant to such paragraph. 6 "(3) ACHIEVEMENT OF ADDITIONAL REDUC- 7 TIONS.—Regulations issued pursuant to paragraph 8 (1) shall ensure that any additional reductions re- 9 quired by paragraph (1)(B)(ii) are fully achieved by 10 no later than eight years after the Administrator 11 makes the determination pursuant to subsection 12 (e)(1) described in paragraph (1). 13 "(g) DEFINITIONS. —In this section, the terms 14 `greenhouse gas' and `greenhouse gas effects' have the 15 meanings given to those terms in section 9901 of the In- 16 ternal Revenue Code of 1986.". 17 (b) NEW MOTOR VEHICLES AND NEW MOTOR VEHI- 18 CLE ENGINES. —Section 202(b) of the Clean Air Act (42 19 U.S.C. 7521(b)) is amended- 20 (1) by redesignating the second paragraph (3) 21 (as redesignated by section 230(4)(C) of Public Law 22 101-549 (104 Stat. 2529)) as paragraph (4); and 23 (2) by adding at the end the following: 24 "(5) Notwithstanding subsections (a) and (b) of 25 section 330, the Administrator may— •HR 763 IH 46 1 "(A) limit the emission of any greenhouse 2 gas (as defined in section 9901 of the Internal 3 Revenue Code of 1986) on the basis of the 4 emission's greenhouse gas effects (as defined in 5 section 9901 of the Internal Revenue Code of 6 1986) from any class or classes of new motor 7 vehicles or new motor vehicle engines subject to 8 regulation under subsection (a)(1); and 9 "(B) grant a waiver under section 10 2 0 9 (b) (1) for standards for the control of 11 greenhouse gas emissions.". 12 (c) FUELS. —Section 211(c) of the Clean Air Act (42 13 U.S.C. 7545(c)) is amended by adding at the end the fol- 14 lowing new paragraph: 15 "(5) The Administrator shall not, pursuant to this 16 subsection, impose on any manufacturer or processor of 17 fuel any requirement for the purpose of reducing the emis- 18 sion of any greenhouse gas (as defined in section 9901 19 of the Internal Revenue Code of 1986) produced by com- 20 bustion of the fuel on the basis of the emission's green- 21 house gas effects (as defined in section 9901 of the Inter- 22 nal Revenue Code of 1986).". 23 (d) NONROAD ENGINES AND VEHICLES EMISSIONS 24 STANDARDS. —Section 213 of the Clean Air Act (42 •HR 763 IH 47 1 U.S.C. 7547) is amended by adding at the end the fol- 2 lowing: 3 "(e) GREENHOUSE GAS EMISSIONS.—Notwith- 4 standing section 330(a), the Administrator may limit the 5 emission of any greenhouse gas (as defined in section 6 9901 of the Internal Revenue Code of 1986) on the basis 7 of the emission's greenhouse gas effects (as defined in sec- 8 tion 9901 of the Internal Revenue Code of 1986) from 9 any nonroad engines and nonroad vehicles subject to regu- 10 lation under this section.". 11 (e) AIRCRAFT EMISSION STANDARDS. —Section 231 12 of the Clean Air Act (42 U.S.C. 7571) is amended by add- 13 ing at the end the following new subsection: 14 "(d) Notwithstanding subsections (a) and (b) of sec- 15 tion 330, the Administrator may limit the emission of any 16 greenhouse gas (as defined in section 9901 of the Internal 17 Revenue Code of 1986) on the basis of the emission's 18 greenhouse gas effects (as defined in section 9901 of the 19 Internal Revenue Code of 1986) from any class or classes 20 of aircraft engines, so long as any such limitation is not 21 more stringent than the standards adopted by the Inter- 22 national Civil Aviation Organization.". 23 SEC. 9. EFFECTIVE DATE. 24 The amendments made by this Act shall take effect 25 on the date of the enactment of this Act, except the carbon •HR 763 IH 48 1 fee under section 9902 of the Internal Revenue Code of 2 1986 shall apply to uses, sales, or transfers more than 3 270 days after the date of the enactment of this Act. 4 SEC. 10. PRINCIPLE OF INTERPRETATION. 5 In the case of ambiguity, the texts of this statute and 6 its amending texts shall be interpreted so as to allow for 7 the most effective abatement of greenhouse gas emissions. 8 SEC. 11. NO PREEMPTION OF STATE LAW. 9 Nothing in this legislation shall preempt or super- 10 sede, or be interpreted to preempt or supersede, any State 11 law or regulation. 0 •HR 763 IH