HomeMy WebLinkAboutStaff Report 5.C 10/07/2019DATE:
TO:
FROM:
SUBJECT
Agenda Item #5.0
October 7, 2019
Honorable Mayor and Members of the City Council through City Manager
Peggy Flynn, City Manager
Eric Danly, City Attorney
Consideration and Possible Adoption of Resolution Urging Enactment of H.R.
763, the Energy Innovation and Carbon Dividend Act of 2019
RECOMMENDATION
It is recommended that the City Council consider and possibly adopt the attached Resolution
urging enactment of H.R. 763, the Energy Innovation and Carbon Dividend Act of 2019.
BACKGROUND
The issue of climate change and related issues such as sustainable practices regarding air quality,
development, energy use, transit and transportation, waste management, etc., continue to figure
prominently in policy discussions of the Petaluma City Council. At the April 15, 2019 City
Council meeting, community members Bruce Hagen and Bob Fabian urged the City Council to
promote greenhouse gas emission reduction in the form of endorsing H.R. 763, the Energy
Innovation and Carbon Dividend Act of 2019. Also on April 15, Councilmember Dave King
requested that this item be agendized for Council consideration. The purpose of this agenda
item is to provide the Council the opportunity to consider a resolution to support the adoption of
H.R, 763.
DISCUSSION
Previously, on November 20, 2017, the City Council unanimously voted to adopt Resolution
2017-171 N.C.S. urging the U. S. Congress to enact a revenue -neutral carbon fee and dividend
program. A copy of Resolution 2017-171 N.C.S and the accompanying staff report are attached.
The staff report for Resolution 2017-171 N.C.S. noted that in 2005, the City of Petaluma joined
the other nine Sonoma County local governments in setting a mutual greenhouse gas target to
reduce emissions to 25% below 1990 levels by 2016, one of the most aggressive greenhouse gas
reduction goals in the country, and that since that time, the City has adopted and implemented
numerous policies and programs aimed at reducing greenhouse gas emissions.
The staff report for Resolution 2017-171 N.C.S. listed the following features of the proposed
Carbon Fee and Dividend Program:
• A fee of $15 per ton of CO2 initially, increasing at least $10 per year on fossil fuels and
other green house gases at the point they first enter the economy
• Fee collection by the U.S. Treasury Department for placement in a Carbon Fees Trust
Fund for rebate to U.S. households
• Import tariffs on products imported from countries without carbon fees
• Monthly dividend payments to U.S. households of 100% of the carbon fees collected, less
administrative costs, to offset increased energy costs
The staff report for Resolution 2017-171 N.C.S. also noted that according to a 2013 study by
Regional Economic Models, Inc., the proposed Carbon Fee and Dividend Program would reduce
CO2 emissions 52% below 1990 levels in 20 years while providing an economic stimulus that
adds 2.8 million jobs and prevents over 230,00 premature deaths by improving air quality.
H.R. 763, the Energy Innovation and Carbon Dividend Act of 2019 includes similar provisions
to those proposed as part of the Carbon Fee and Dividend Program supported by Resolution
2017-171 N.C.S. If adopted, H.R. 763 would:
• Impose a fee on the carbon content of fuels, including crude oil, natural gas, coal or any
other product derived from them that will cause greenhouse gases to be emitted into the
atmosphere
• Impose the carbon fee on producers or importers of the fuels and equal the greenhouse
gas content of the fuel multiplied by the carbon fee rate
• Set the initial carbon fee at $15 in 2019 and increase the fee by $10 each year subject to
further adjustments based on the progress in meeting specified emissions reduction
targets.
• Impose a fee on fluorinated greenhouse gases
• Include exemptions for fuels used for agricultural or non -emitting purposes, and fuels
used by the armed forces
• Provide rebates for facilities that capture and sequester carbon dioxide
• Establish fees or refunds for carbon -intensive products that are exported or imported
• Require deposit of fee proceeds into a Carbon Dividend Trust Fund for payment of
administrative expenses and dividend payments to U.S. citizens and lawful residents
• Require decommissioning of fees when emission levels and monthly dividend payments
fall below specified levels
• Suspend certain regulations that limit greenhouse gas emissions, and also provide that the
suspensions expire if emissions targets are not reached after a specified time period
A summary of H.R. 763 and the text of the bill are attached. Frequently Asked Question
information posted at: htti)s:Hener�4vinnovationact.or�4/how-it-works/, which is a website
maintained by Citizens Climate Lobby, a not-for-profit organization that advocates for bipartisan
climate solutions in Congress. Included in the Citizens climate lobby FAQ information is the
following regarding the impact H.R. 763 would have on retail energy costs:
There are some fornis of energy we buy directly, like gasoline and electricity. As
a rule of thumb, each $ 10 per metric ton carbon fee would add about I 10 to a
gallon of gasoline, about 60 to a therm of natural gas, and 0.90 to a kilowatt-hour
Z__
of coal -generated electricity. Energy costs are also embedded in most products
and services we consume, so those would increase in price depending on carbon
footprint, ranging from 0.2 percent for a TV to LI percent for aii airplane ticket
(for each $10/metric ton increase).
I a 161r.110I KI 0 ILIVA I7XION
The only financial impacts of Council action urging passage of H. R. 763 are staff time involved
in preparing the action.
ATTACHMENTS
1. Resolution urging passage of H.R. 763
2. Resolution 2017-171 N.C.S. and accompanying staff report
3. Summary and text of H.R. 763
Attachment 1
RESOLUTION NO. 2019- N.C.S. OF THE CITY COUNCIL OF THE CITY OF
PETALUMA URGING PASSAGE OF H.R. 763, THE ENERGY INNOVATION AND
CARBON DIVIDEND ACT OF 2019
WHEREAS, U.S. Representative Theodore Deutch of Florida has introduced on January
1, 2014 H.R. 763, the Energy Innovation and Carbon Dividend Act of 2019 ("the Act"); and
WHEREAS, the Act would:
• Impose a fee on the carbon content of fuels, including crude oil, natural gas, coal or any
other product derived from them that will be used so as to emit greenhouse gases into the
atmosphere
• Impose the carbon fee on producers or importers of the fuels and equal the greenhouse
gas content of the fuel multiplied by the carbon fee rate
• Set the initial carbon fee at $15 in 2019 and increase the fee by $10 each year subject to
further adjustments based on the progress in meeting specified emissions reduction
targets
• Impose a fee on fluorinated greenhouse gases
• Include exemptions for fuels used for agricultural or non -emitting purposes, and fuels
used by the armed forces
• Provide rebates for facilities that capture and sequester carbon dioxide
• Establish fees or refunds for carbon -intensive products that are exported or imported
• Require deposit of fee proceeds into a Carbon Dividend Trust Fund for payment of
administrative expenses and dividend payments to U.S. citizens and lawful residents
• Require decommissioning of fees when emission levels and monthly dividend payments
fall below specified levels
• Suspend certain regulations that limit greenhouse gas emissions, and also provide that the
suspensions expire if emissions targets are not reached after a specified time period; and
WHEREAS, on November 20, 2017, the City Council by a unanimous vote adopted
Resolution 2017-171 N.C.S. urging the United States Congress to enact a revenue -neutral carbon
fee and dividend program; and
WHEREAS, H.R. 763, the Energy Innovation and Carbon Dividend Act of 2019
includes provisions similar to those proposed as part of the Carbon Fee and Dividend Program
supported by Resolution 2017-171 N.C.S.; and
WHEREAS, H.R. 763 was introduced with bi-partisan support, and as of September 30,
2019, has 59 cosponsors in addition to the original 6 sponsors, and has secured support from a
broad range of community, business and civic leaders and organizations; and
M
WHEREAS, if enacted, HR -763 would result in American families receiving monthly
carbon dividend payments estimated by Regional Economic Models, Inc., to be approximately
$288 in 2025 and approximately $396 in 2035 for a family of 4 with two adults; and
WHEREAS, the City of Petaluma has joined the other 9 Sonoma County local
governments in setting a mutual greenhouse gas target to reduce emissions to 25% below 1990
levels by 2016, one of the most aggressive greenhouse gas reduction goals in the country, and
since that time, the City has adopted and implemented numerous policies and programs aimed at
reducing greenhouse gas emissions; and
WHEREAS, enactment of H.R. 763 would encourage market-driven innovation of clean
energy technologies and market efficiencies that would reduce harmful pollution and leave a
healthier, more stable, and prosperous nation for future generations; and
WHEREAS, in urging passage of H.R. 763 the City Council is acting consistently with
its commitment along with the other 9 Sonoma County local governments to reduce greenhouse
gas emissions;
NOW, THEREFORE, the City Council of the City of Petaluma does hereby urge
Senators Diane Feinstein and Kamala Harris, and Representative Jared Huffman, whose districts
include Petaluma, to support and to urge their colleagues in the Senate and the House to support
passage of H.R. 763.
Attachment
Agenda
d e#3.A
DATE November 20, 2017
TO: Honorable Mayor and Members of the C.ity Council through City Mana er4v
FROM: Scott Duiven, Senior Planner
.SUBJECT: Resolution Urging the United States Congress to Enact a Revenue -Neutral Carbon
Fee and Dividend Program
It is recommended that the City Council adopt the attached Resolution Urging the United States
Congress to Enact a Revenue -Neutral Carbon Fee and Dividend Program.
BACKGROUND
It has been well documented that climate change caused by global warming -related greenhouse
gas emissions, ' including CO2, is already leading to large-scale problems including ocean
acidification and rising sea levels; more fi-equent, extreme and damaging weather events such as
Beat waves, storms, heavy rainfall and flooding, and droughts; more frequent and intense
wildfires; disrupted ecosystems affecting biodiversity and food production; and an increase in
heat -related deaths. In 2005, the City of Petaluma joined the other 9 local governments within
Sonoma County and set a mutual greenhouse gas target to reduce emissions to 25 percent below
1990 levels by 2015, one of the most aggressive in the country. Since then, Petaluma has adopted
and implemented numerous policies and programs aimed at reducing greenhouse gas emissions.
The Citizen's Climate Lobby is a non-profit, non-partisan, grassroots advocacy group focused on
national policies to address climate change with over 400 local chapters, including Santa Rosa.
The Citizen's Climate Lobby is advocating for a Revenue -Neutral Carbon Fee and Dividend
Program, Andy Ferguson, a Petaluma resident, presented this proposal to the City Council during
public comment on October 16, 2017 and the Council asked that this item be brought forward on
a future agenda.
DISCUSSION
The Carbon Fee and Dividend Program proposes a steadily rising fee on fossil fuels, initially at
$15/ton of CO2 equivalent emissions of fossil fuels and escalating $10/ton/year. The fee would
be imposed on all fossil fuels and other greenhouse gases at the point where they first enter the
economy. The fee would be collected by the Treasury Department, placed in a Carbon Fees Trust
Fund, and rebated to American households. Import fees on products imported from countries
without a carbon fee would discourage businesses from relocating where they can emit more
CO2 and motivate other countries to adopt similar carbon. policies.
Monthly dividend payments would be made to all American`households to help offset the
increased energy costs during the transition. The total value of all monthly dividend payments
would represent 100% of the carbon fees collected per month, minus administration costs.
Estimated monthly dividends for a family of four begin around $501month and rise to
approximately $400/month over a 20 year period.
A 2013 study by Regional Economic Models, Inc. (REM), commissioned by the Citizens'
Climate Education Corporation (CCE), shows that such an approach will reduce CO2 emissions
52% below 1990 levels in 20 years while providing an economic stimulus that adds 2.8 million
jobs and prevents over 230,000 premature deaths by improving air quality.
Passage of the resolution (see Attachment 1) would confirm the City of Petaluma's support for
the Citizen Climate Lobby's National Revenue -Neutral Carbon Fee and Dividend Program. For
more information, a summary of the legislative proposal for the Carbon Fee and Dividend
program has been attached (see Attachment 2).
FINANCIAL IMPACTS
There are no financial impacts other than the staff time and costs associated with preparing this
staff report.
ATTACHMENTS
1. Resolution
2. Legislative Proposal
ATTACHMENT1
RESOLUTION URGING THE UNITED STATES CONGRESS TO ENACT A
REVENUE -NEUTRAL CARBON FEE AND DIVIDEND PROGRAM
WHEREAS, the: Intergovernmental Panel on Climate Change has stated in its recently
released 5th Assessment Report, Climate Change 2013: The Physical Science Basis, that
"[w]arming of the climate system is unequivocal" and "[i]t is extremely likely that human
influence has been the dominant cause of the observed warming since the mid -20th century"; and
WHEREAS, in May of 2013, the global atmospheric concentration of carbon dioxide
reached 400 parts per million, the highest level in the last 800,000 years; and
WHEREAS, in May 2014, two separate scientific papers were published in the journals
Science and Geophysical Research Letter documenting dramatic reheats of Antarctic glaciers
and predicting that large-scale destruction of the West Antarctic ice sheets is likely now
inevitable and will lead to sea level rises of 10 feet or more; and
WHEREAS, conservative estimates by climate scientists throughout the world state that
to achieve climate stabilization and avoid cataclysmic climate change, emissions of greenhouse
gases must be brought to 80 percent below, 1990. levels by 2050; and
WHEREAS, the California Global Warming Solutions Act of 2006 (Division 25.5
(commencing with Section 38500) of the Health and Safety Code) commits the state to reduce
greenhouse gas emissions to 1990 levels by 2020, and the Governor's Executive Order S-3-05
further calls on the State to establish a policy to reduce greenhouse gas emissions to 80 percent
below 1990 levels by 2050; and
WHEREAS, the City of Petaluma supports powerful new policies to meet greenhouse
gas emission reduction goals in accordance with the 2015' Paris Climate Agreement despite the
United States' formal withdrawal from that accord; and
WHEREAS, the City of Petaluma recognizes the threat that uncontrolled sea level rise
moreover, recognizes the need for poses to our local well-being, economic activity, and
survivability as a community, and continued urgent action on a broad scale to counter the
degradation of the natural and economic environment that results from warming temperatures
and ocean acidification; and
WHEREAS, the United States Congress can enact a national carbon tax on fossil fuels,
based on the amount of carbon dioxide the fuel will emit when burned; and
8
WHEREAS, for efficient administration, fossil fuels can be taxed once, as far upstream
in the economy as practical, or at the port of entry into the United States; and
WHEREAS, a national, revenue -neutral carbon tax starting at a relatively low rate and
increasing steadily over future years is a market-based solution that would minimally disrupt the
economy while sending a clear and predictable price signal to businesses to develop and use
noncarbon -based energy resources; and
WHEREAS, the Citizens' Climate Education Corporation Commissioned Regional
Economic Models, Inc. (REMI) to do a nation-wide macroeconomic study on -the impact of a
revenue-netittral carbon tax; and
WHEREAS, REMI's study predicted that after 10 years, a revenue -neutral carbon tax
would lead to a decrease in carbon dioxide emissions by 33 percent, an increase in national
employment by 2.1 million jobs, and an average monthly dividend for a family of four of $288;
and
WHEREAS, border adjustments such as carbon -content -based tariffs on products
imported from countries without comparable carbon pricing and refunds to our exporters of
carbon taxes paid can maintain the competitiveness of United States businesses in global
markets; and
WHEREAS, a national carbon tax can be implemented quicldy and efficiently, and
respond to the urgency of the climate crisis, because the federal government already has in place
mechanisms, such as the Internal Revenue Service, needed to implement and enforce the tax and
already collects taxes from fossil fuel producers and importers; and
WHEREAS, a national carbon tax would make the United States a leader in mitigating
climate change and the advancing clean energy technologies of the 21st Century, and would
incentivize other countries to enact similar carbon taxes, thereby reducing global carbon dioxide
emissions without the need for complex. international agreements.
NOW, THEREFORE, BE IT RESOLVED that the City of Petaluma along with other
cities, businesses, and organizations urge the United States Congress to enact, without delay, a
tax on carbon -based fossil fuels with the stipulations that:
• the tax should be collected once, as far upstream in the economy as practical, or at the
port of entry into the United States;
6*1
• the tax rate should start low and increase steadily and predictably to achieve the goal of
reducing carbon dioxide emissions in the United States to 80 percent below 1990 levels
by 2050;
• all tax revenue should be returned to middle- and low-income Americans to protect them
from the impact of rising prices due to the tax;
• that the international competitiveness of United States businesses should be protected by
using carbon-eontent-based tariffs and tax refunds; and
BE IT FURTHER RESOLVED that the City Manager of Petaluma transmit copies of
this resolution to the President and Vice President of the United States, to the Speaker of the
House of Representatives, to the Majority Leader of the Senate, to each Senator from California
in the Congress of the United States, to the member representing Petaluma in the House of
Representatives in Congress and to the author of this legislation for appropriate distribution.
Me
Attachment 3
Shownere:
Introduced in House(01/24/2019)
Energy Innovation and Carbon Dividend Act of 2019
This bill imposes a fee on the carbon content of fuels, including crude oil, natural gas,
coal, or any other product derived from those fuels that will be used so as to emit
greenhouse gases into the atmosphere.
The fee is imposed on the producers or importers of the fuels and is equal to the
greenhouse gas content of the fuel multiplied by the carbon fee rate. The rate begins at
$15 in 2019, increases by $10 each year, and is subject to further adjustments based
on the progress in meeting specified emissions reduction targets. The bill also imposes
a specified fee on fluorinated greenhouse gases.
The bill includes
• exemptions for fuels used for agricultural or nonemitting purposes,
• exemptions for fuels used by the Armed Forces,
• rebates for facilities that capture and sequester carbon dioxide, and
• border adjustment provisions that require certain fees or refunds for carbon -
intensive products that are exported or imported.
The fees must be deposited into a Carbon Dividend Trust Fund and used for
administrative expenses and dividend payments to U.S. citizens or lawful residents. The
fees must be decommissioned when emissions levels and monthly dividend payments
fall below specified levels.
The bill also suspends certain regulations that limit greenhouse gas emissions. The
suspensions expire if the emissions targets established by this bill are not reached after
a specified time period. '
III
AUTHENTICAtED
U.S. GOVERNMENT
IN'.R 'TIGN
t)P6
I
1.16Tx CONGRESS H.
Re
IST SESSION 76 &S
To create a. Carboli Di«(lencl Trust I mid for the Alnericall people in order
to encourage market-driven innovation of clean energy teelmologies and
market efficiencies whieh will reduce harmful pollution and leave a.
healthier, more stable, and nlore prosperous nation for filture genera-
tiozls.
IN THE HOUSE OF REPRESENTATIVES
JANm,my 24, 2019
Mr. DEuTcIi (for himself, Mr. LII'IN19IU, Mr. GRIST, Mr. PI,,TERS, INN.
EsI-Too, Ms. Jlj])Y Cilu of California, and Mr. ROONEY of Florida.) intro-
duced the following bill, which was referred to the Conunittee on Ways
and Me,
.ns, and in addition to the Committees on Energy and Commerce,
and Foreign Affairs, for a period to be subsepently determined by the
Speaker, in each case for consideration of such provisions as fall ivithin
the jurisdiction of the conuuittee concerned
To create a. Carbon Dividend Trust Fund for the .American
people in order to encourage mark -et -driven ii'movation
of clean energy technologies a,Ilcl Ixla,rl�et efficiencies
which will reduce ha.nuftil pollution and leave a healthier,
inore stable, and more prosperous nation for fature gen-
erations.
1 Be it enacted by the Senate and House of Representa-
2 tives of the United States of'fl.merica in Congress assembled,
m
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 n7a.rkets strengthen our economy
7 and benefit our Nation by encouraging coni}petition,
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;
1.2 (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 future gen-
15 erations; and
16 (4) creation of a Carbon. Dividend Trust Fund,
17 to be distributed to the American people, i-01 make
1.8 inarkets more efficient, create jobs, and stimulate
19 competition, innovation, and technological lx°ogress
20 that benefit all Americans and future generations,
21 SEC. 3. CARBON DIVIDENDS AND CARBON FEE.
22 (a) IN GENEIUL.—The Internal Revenue Code of
23 1986 is amended by adding at the end the following new
24 subtitle:
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"Subtitle i
2 AND CARBON
4 "SEC. 9901. DEFINITIONS.
5 "For purposes of this subtitle:
6 "(a.) ADMINISTRATOR.—Tbe term 'Administrator'
7 means the Acllninistrator of the Enviromnental Protection
8 Agency.
9 "(b) CARBON DIOMDE I+ QUIVkLENT OR CO2 -E.
10 The term `carbon dioxide equivalent' 01" `CO2 -e' means the
11 number of metric tons of carbon dio,,dde emissions with
12 the same global warning potential as one nwtric ton of
13 another greenhouse gas.
14 "(c) CARBON -INTENSIVE PRODUCT.—'.Phe term `car -
15 bon -intensive product' means, as identified by the See -
16 retar-3r by rule -
17 "(1) any manufactured or agricultural product
18 which the Secretary in misulta-tion v6th the Aclmirr
19 istrator determines is emissions -intensive and tracle-
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"CHAPTER 101. CARBON FEES.
"CH11I'TER 102. CARBON BORDER FEE ADJUSTAIENT.
3
"CHAPTER 101 --CARBON FEES
"See.
9901.
Definitions.
"See,
9902.
Carbon fee.
"See.
9903.
Emissions reduction schedule,
"See.
9904.
Fee On fluorinated g2'eenhouse galws.
"See.
9905.
Decommissioning), of Carbon Administration.
"See.
9906,
Carbon Capture and Sequestration.
"See,
9907.
Administrative autbority.
4 "SEC. 9901. DEFINITIONS.
5 "For purposes of this subtitle:
6 "(a.) ADMINISTRATOR.—Tbe term 'Administrator'
7 means the Acllninistrator of the Enviromnental Protection
8 Agency.
9 "(b) CARBON DIOMDE I+ QUIVkLENT OR CO2 -E.
10 The term `carbon dioxide equivalent' 01" `CO2 -e' means the
11 number of metric tons of carbon dio,,dde emissions with
12 the same global warning potential as one nwtric ton of
13 another greenhouse gas.
14 "(c) CARBON -INTENSIVE PRODUCT.—'.Phe term `car -
15 bon -intensive product' means, as identified by the See -
16 retar-3r by rule -
17 "(1) any manufactured or agricultural product
18 which the Secretary in misulta-tion v6th the Aclmirr
19 istrator determines is emissions -intensive and tracle-
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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 Arles ldentlfjnng carbon -intensive products, the
5 follm6ug shall be considered carbon -intensive prod -
6 acts: iron, steel, steel mill products (including pipe
7 and tube), aluminum, cement, glass (iu.cl-uding flat,
8 container, and specialty glass and fiberglass), pulp,
9 paper, chemicals, or industrial eeran-des.
10 "(d) CARBON LEAT AGE.—The term `carbon leaky-ve'
11 means an increase of global greenhouse gas emissions
12 which are substantially clue to the relocation of greenhouse
13 gas sources froze the United States to jurisdictions which
14 lack comparable controls upon greenhouse gars einissions.
15 "(e) COST 014' C-j\RBON OR CARBON COSTS.—T11e
16 term `cost of carbon' or `carbon costs' means a national
17 or sub -national government policy which explicitly places
18 a, price ou greelfllouse gas pollution and shall be limited
19 to either a. tax on greenhouse gases or a. systeim of cap -
20 and -trade. The cost of carbon is expressed as the price
21 per metric ton_ of CO2 -e.
22 "(f) COVE, IuEl7 ENTITY.—The term `covered entity'
23 lneaus-
24 "(1) in the case of crude oil-
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I
1 "(A) a refinery operating in the United
2 States, and
3 "(B) any importer of any petroleum. or pe -
4 troleutn 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) a,ny innporter of coal into the United
9 States,
10 "(3) iia the case of natural ga.s-
11 "(A) any entity entering pipeline quality
12 natural gas into the natural gas trauslnissiorn
1.3 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
1.8 render part 98 of title 40, Code of Federal Regula -
19 tions, and
20 "(5) any entity or class of entities which, as de -
21 terrnined by the Secretary, is transporting, selling,
22 or otherwise ztsing a covered fiiel in a mam er which
23 emits a greenhouse gas to the atmosphere and which
24 has not been covered by the carbon fee, the
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6
1 fluorinated greenhouse gas fee, or the carbon border
2 fee adjustment.
3 "(g) COVERED FUEL.—The term `covered fuel'
4 means crude oil, natural gas, coal, or any other product
5 derived from crude oil, natural gas, or coal Avbich sball
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 `axport' means to transport
10 a prod -act from within the jurisdiction of the United States
11 to persons outside the United States.
12 "(j) FLUORINATED GREENHOUSE GAs.—The term
13 `fluorinated greelfliouse gas' means sulfur hexafluoride
14 (SF6), nitrogen trifhloride (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 hydrofluoroearbon, any perfluorocarbon, any fully
21 fluorinated linear, branched or cyclic alkane, ether, ter -
22 tiary amine or aminoether, any perfluoropolyether, and
23 any hydrofluoropolyether.
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1 "(k) FOSSIL 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 Tull fuel cycle greenhouse gas emis-
6 sions' means the greenhouse gas content of a covered fuel
7 phis that covered fuel's upstream greenhouse gas emis-
8 sions.
9 "(m) GLOBAL AVARMING POTENTIAL.—The term
10 `global warining potential' means the ratio of the tine -
11 integrated radiative forcing from the instantaneous release
12 of one kilogT am of a trace substance relative to that of
13 one kilogram of carbon cliozicle.
14 "(n) GREENHOUSE GAS.—The tern `greeiiilonse gas'
15 means carbon dioxide (CO2), methane (CH4), nitrous
16 oxide (N20), snlfiir hexaf7uoride (SF6),
17 hydroflnorocarbons (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, e.-q)ressed in metric tons of CO2 -e, -\ivhich would be
22 emitted to the atmosphere by the nse of a covered Kiel
23 and shall include, noiiezclusively, einissions of carbon diox-
24 ide (CO2), nitrous oxide (N20), methane (CH4), and other
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8
I greer-Aiouse gases as identified by rule of the Adminis-
2 trator.
3 "(p) GREENHOUSE G-�s EFFECT.—The term 'green -
4 house gas effect' means the adverse effects of greellhoiise
5 gases on Health or welfare caused by the greenhouse gas's i
I
6 heat -trapping potential or its effect on ocean acidification.
7 (q) IMPORT.—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 su�ject to the jurisdiction
10 of the United States.
E
1.1 "(r) PETROLEUM.—The terra `petroleum' means oil
12 removed from the earth or the oil derived frons tar sands
13 or shale.
14 "(S) PRODUCTION GTtEENIIOUSE Gms ElvfisSIONS.-
1.5 The terns `production greenhouse gas emissions' meads
16 the clrrantity of gTeenhouse gases, expressed in metric tons
1.7 of CO2 -e1 emitted to the atmosphere resulting from, non -
18 exclusively, the production, manufacture, assen7bly, trans -
19 portation, or financing of a product.
20 "(t) UPSTREAM GRE'ENIIOUSE (xAs EMISSIONS. -
21 The terra `upstream greenhouse gas emissions' means the
22 quantity of greenhouse gases,. expressed in metric toils of
23 CO2 -e, emitted to the atmosphere resulting from., non -
24' exclusively, the extraction, processing, transportation, f'i-
25 naneing, or other preparation of a covered fuel for use.
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1 "SEC. 9902. CARBON FEE.
2 "(a) CARBON FEE.—There is hereby imposed a, car -
3 boil fee on an), covered entity's emitting use, or sale or
4 transfer for an emitting use, of any covered ft -tel.
5 "(b) A IOUNT 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 1UTE.—For purposes of this See -
1 1
ee-11
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, phis
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
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I
1 following a year for which the Secretary deter -
2 mines under 9903(b) that the actual emissions
3 of gT eenhouse 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 di_ately follo«ing 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 1.0 percent of the greenhouse gas
16 emissions from covered fuels during the ,year
17 2016, paragraph (1)(13)(ii) shall be applied by
18 substituting `$0' for the dollar amount other -
19 wise in effect for the calendar year guider such
20 paragraph.
21 "(3) INFLATION ADJUSTMENT.—In the case of
22 any calendar year after 2019, each of the dollar
23 amo-ants 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
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1 "(B) the cost-of-li-ring 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) ENEMPTION AND REFUND.—The Secretary
7 shall prescribe such rules as are necessary to ensure the
8 fee imposed by this section is not imposed -\vith 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) FUEL.—If any covered fael 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 See -
22 retary.
23 "(B) FARM, FARMING USE, AND FARATING
24 PURPOSE.—The terms `farm', `farming use',
25 and `farming purpose' shall have the respective
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12
1 meanings given such terms iuider section
2 6420(c).
3 "(C) OTHER GREENHOUSE GASES EMIS-
4 SIONS FROM AGRICULTURE. --The carbon fee
5 shall not be levied upon non-fossil fuel gTeen-
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 rule of the Secretary.
16 "SEC. 9903. EMISSIONS REDUCTION SCHEDULE.
17 "(a) IN GENERAL. Ail 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 frons covered fuels during the year 2016
22 shall be the reference amount of enussions and shall
23 be determined from the `Inventory of U.S. Green -
24 house Gas Emissions and Sinks: 1990-2016' pub -
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1 lishecl by the Environmental Protection Agency in
2 April of 2 018 .
3 11(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.
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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 quired 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 amomit equal to -
8 "(1) the total anloiult, in metric tons of CO2 -
9 e, of emitted fluorinated gl-eei-Alouse gases (or, in the
10 case of a supplier, emissions that woulcl 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(4)(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 gTeenhouse 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 incli-6dual has been less than $20 for
24 3 consecutive years,
25 the Secreta.Iy shall decominission in an orderly manner all
26 bureaus and programs associated with administering the
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1.5
1 carbon fee, the carbon border fee adjustment, and the Car -
2 bon Dividend Trust Fluid.
3 "(b) INFLATION ADJUST-TWFNT.—In the case of any
4 calendar year after 2020, the $20 amount under sub-
s section (a)(2) shall be increased by an amount eclual to --
6 "(1) suclr dollar antotuit, inultiplied by
7 "(2) cost -of -living adjustment d.eternlined. under
8 section. 1(f) (3) for the calendar year, determined by
9 substituting `calen(lar year 2017' for 'calendar year
10 2016' in siftaragraph (A)(ii) thereof.
11 "SEC. 9906. CARBON CAPTURE AND SEQUESTRATION.
12 "(a) IN GI+NERAL.—The Secretary, in consultation
13 `vith the administrator and the Secretary of Energy, shall
14 prescribe regulations for snaking payrnents 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 GENTERAL.—The Secretary shall make
19 payments to a qualified facility in the sante manner
20 as if such payment was a refund of an overpayment
21 of the carbon fee imposed by section 9902, in cases
22 in mvhieh such qualified facility -
23 "(A) uses any covered fuel -
24 "(i) `with respect to which the carbon
25 fee has been paid, and
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1 "(ii) which results in the emission of
2 qualified carbon dioxide,
3 "(B) Capt i -res such emitted qualified car-
o bon dioxide, and
5 "(C)(i) sequesters such qualified carbon cli-
6 oxide in a manner Nvhicla is safe, perrrianent,
7 and in compliance with any applicable local,
8 State, and Federal laws, of
9 "(ii) utilizes such qualified carbon dioxide
10 ir) a. manner proAidecl in paragraph (3)(C).
11 "(2) AMOUNT OF REFTINI).—The payment de -
12 terinined under this section shall be an amount
13 equal to the lesser of -
14 "(A) (i) the adjusted metric tons of quali-
15 fieri carbon dioxide captured and sequestered or
16 utilized, multiplied by
17 "(ii) the carbon lee rate during the year in
18 Avhich the carbon fee Avas iinposecl by section
1.9 9902 upon the covered fuel to Avhich such car -
20 bon dio,,dcle relates, or
21 "(B) the ainount 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—
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1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
17
"(A) QUALIFIED CARBON DIOMDE; QUALI-
FLED FACILITY.—
"(i) QUALIFIED CARBON DIOMDE.—
The term `qualified carbon dioxide' has the
same measling given such term under sec-
tion 45Q(b).
"(ii) QUALIFIED FACILITY.—The term
`qualified facility' means any industrial fa-
cility at Avhieh carbon capture equipment is
placed in serN ice.
"(B) ADJUSTED TOTAL METRIC TONS.—
The adjusted total metric tons of qualified car-
bon dioxide captured and. sequestered or utilized
shall be the total metric tons of qualified carbon
dioxide captured and sequestered or utilized, re-
duced by the amount of any carbon dioxide like-
ly to escape and be emitted into the atmosphere
due to imperfect storage technology or other-
wise, as determined by the Secretary in con-
sultation with the Administrator.
"(C) UTILIZATION.—The Secretary, in
consultation with the Administrator, shall es-
tablish regulations pro -tiding for the methods
and processes by which qualified carbon dioxide
may be utilized so as to remove that gnalified
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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 nliniinize
5 the escape or further emission of the qualified
6 carbon dioiide into the atmosphere.
7 "(D) SEQUESTRATION.—Not later 540
8 clays after the date of the enactment of this see -
9 tion, the Secretary, in consultation with the Ad -
10 ministrator, shall prescribe regulations identi-
11 Eying the conditions inkier which carbon dioxide
12 may be safely and permanently sequestered.
13 "(4) COORDINATION «rITII 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 guider section 45Q.
19 "SEC. 9907. ADMINISTRATIVE AUTHORITY.
20
"(a)
IN GE\TERAL.—The
Secretary in
consultation
21
`vith the
Administrator
shall prescribe such
regulations,
22 and other guidance, as lnay be necessary to carry ont 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.
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19
1 "(b) SPECIFTCALLY.—STIch 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 g1 eenbouuse 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 «Thieh full fuel cycle gTeen-
9 house gas emissions frons 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 papnent of the carbon fee or
14 the fluorinated greenhouse gas fee,
15 "(3) requirements for the montluly payinent 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 bet«Teen 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,
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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 implenlenta-
6 tion of the carbon border fee adjustment of chapter
7 102.
8 "CHAPTER 102—CARBON BORDER FEE
9 ADJUSTMENT
"See. 9908. Carbon border fee adjustment.
"See. 9909. Administration of the carbon border fee adjustment.
"See. 9910. AUoeation of carbon border fee adjustinent revenues.
10 "SEC. 9908. CARBON BORDER FEE ADJUSTMENT.
11 "(a) IN GENERAL.—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 conseiiTe 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 eov-
21 erect fiiel, there shall be imposed a fee equal to the excess
22 (if any) of -
23 "(1) an amount equal to—
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1 "(A) the a,lnoimt of hill ft -tel cycle g7 een-
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 EIcPoRTs FROM UNITED
21 STATES. -
22 "(1) CARBON -INTENSIVE PRODUCTS.—UIIder
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
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22
1 or produced in the TTnited States a.n amount equal
2 to the excess (if ally) of -
3 "(A) an amount equal to—
o "(i) the production greerdi.ouse gas
5 emissions of the exported carbon -intensive
6 product, multiplied by
7 "(ii) the carbon fee late during the
8 year in which the carbon fee or fluorinated
9 greenhouse gas fee was paid upon the pro -
1.0 duction greenhouse gas emissions of the
11 exported carbon-intelsive product, over
12 "(B) any total cost of carbon to be levied
13 upon the carbon -intensive product by a.ny juris-
14 diction to which the carbon -intensive product is
15 to be imported.
16 Any such credit or refund 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 pro(luets,
24 "(2) COVERED FUELIS.—Under regulations pre -
25 scribed by the Secretary in the case of a covered
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W
1 fuel produced in the United States with respect to
2 which the fee lander seetioll 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 fi cel, multiplied by
9 "(ii) the carbon fee rate at the time
10 the carbon fee was paid upon the full fiiel
11 cycle greenhouse gas emissions of the ez-
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-inteiisive product is to be imported.
16 Any such credit or refund shall be allowed in the
17 same manner as if it were an overpayrnient of tax
18 imposed by section 9902.
19 "(f) DEFINITIONS.—For purposes of this section -
20 "(1) Foi ErO,,\T (COST OF CARBON; FOREIGN GAR --
21 BON COSTS,—The term `foreign cost of carbon' or
22 `foreign carbon cost' means the cost of any laws of
23 a foreigi7 jurisdiction which impose a systein of cap -
24 and -trade «pith respect to, or a, tax or fee on, green -
•HR 763 IH
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24
1 house gas. Such cost shall be determined and ex -
2 Dressed 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 enlis-
7 sions of a carbon -intensive product or the 8111
8 fLLel cycle greenhouse gas emissions of a covered
9 ft -Lel, multiplied by
10 "(B) the cost of carbon with respect to
11 such product or fuel, reduced by any amount
12 refunded «rith 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 Tied' means an amount equal to -
19 "(A) the production gTeenhonse' gas enlis-
20 sions of a carbon -intensive product, or the frill
21 fliel cycle greenhouse gas emissions of a covered
22 filel, multiplied by
23 "(B) the foreign cost of carbon Avith re -
24 speet to such product or fuel, rechleed by the
*HR 763 IH
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25
1 amomit 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) GE TNERALLY.—The Secretary in consultation
8 with the Administrator shall prescribe regulations and
9 guidance «Thich implement the carbon border fee adjnst-
10 went 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 greel-Alouse gas emissions
14 of an imported covered fiiel, the full fuel cycle greenhouse
15 gas emissions of an imported covered fuel, or the foreigli
16 cost of carbon, or othenA ise administering the carbon bor-
17 der fee adjnstinent, it is the sense of Congress that the
18 Secretary should collaborate with authorized officers of
19 any jurisdiction, inch-Ldhig sub -national governments, af-
20 fected by the carbon border fee adjustment.
21 "(C) METI10DOLOGY.—In determining the production
22 greenhouse gas emissions of an imported carbon -intensive
23 product, the npstream greenhouse gas emissions of an im-
24 ported covered fiiel, the frill fuel cycle greenhouse gas
25 emissions of an imported covered fael, or the foreign cost
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26
1 of carbon, the Secreta.i�r shall use reliable methodologies,
2 iATM(Ai-
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 gi-eenhouse 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 eom-
17 pose a carbon -intensive product's production
18 greenhouse gas emissions, as well as the various
19 processes «Thich produced those emissions,
20 "(2) ensure that no covered fuel, covered
21 fluorinated g1 eenhouse gas, or carbon -intensive prod -
22 nct has the carbon fee, the fluorinated greenhouse
23 gas fee, or the border fee adjustment imposed upon
24 it more than once,
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27
1 "(3) ensure that the implementation of the bor-
2 der carbon adjustment aligns with the carbon fee
3 and the f7norinated gas fee,
4 "(4) in the case of incomplete data, rely upon
5 the best available methodologies for interpolating
6 data gaps, and
7 44(5) are consistent tivith international treaties
8 and ag,Teements.
9 "(d) SCHEDULE.—The Secretary shall determine—
14 "(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 enactiaaent of this section, the full. fuel cycle
15 greenhouse gas en-issions 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, a.ricl as i-iecessaiy confidential proce-
23 drures by which the importer of a,r_ry carbon -intensive prod -
24 uct or any covered fuel may petition the Secretary to re -
25 vise the Secretm37's determination of the production green -
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28
1 house gas emissions, full fuel cycle greeffllouse gas elnis-
2 Bions, or upstream greenhouse gas emissions of that ii -n-
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 UNITED STATES TO THE
7 TERRITORIES OF THE UNITED STATES.—Not«vith-
8 standing any other treaty, law, or policy, shipments of eov-
9 erect 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 refund of the carbon fee under section
13 9908(e).
14 "(g) IMPORTS TO THE TERRITORIES OF THE UNITED
15 STATES.—Nob6thstanding 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 feet to Section 9908(c) or 9908(4),"
20 "SEC. 9910. ALLOCATION OF CARBON BORDER FEE ADJUST -
21 MENT REVENUES.
22 "The revemies collected under this chapter may be
23 used to supplement appropriations made available in fiscal
24 years 2020 and thereafter—
.HR 763 IH
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1 "(1) to U.S. Customs and Border Protection, m
2 such amounts as are necessary to admi-sister the
3 carbon border fee a.djustinent, then
4 "(2) to the Department of Treasury, in such
5 amounts as are necessar.)T to allow refunds uncles
6 section 9908(e) to e:.,I)orters of carbon -intensive
7 products and exporters of covered fuels.".
8 (b) COORDINYMON AVITII C LIMON OXIDE SEQUES-
9 IPRATION CREDIT.—Section 45Q(f) is ainended by adding
10 at the end the folloi-ring new paragraph:
11 "(8) COORDINATION ANTITII 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, NEGOTIA-
16 TTO-N`S;.--
17 (1) CONFORMANCE . WITH INTERNATIONAL
18 'PREATTES.—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 a.cljustment under
22 chapter 102 of the Internal Revenue Code of 1986
23 to-6olate ally treat.), to Aiuldch 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 III
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30
1 nient so as to briDg the carbon border fee adjust -
2 hent into conformance with inArtiational law.
3 (2) INTERNiLTIONAL NEGOTI1\-TfONS.—Tyle Con -
4 grecs finds the international mitigation of green -
5 horse gas emissions to be of national importance.
6 Therefore, the Congress encourages the Secretary of
7 State, or the Secretary's designee, to cominmice 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 or TIIE CARBON BORDER FEE
16
ADJUSTAIENT. 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 went which includes provisions for the suspen-
21 cion of the carbon border fee adjustment, in
22 whole, or in part, with ally party sigl-latomy to
23 the treaty or other international agreement, or
24 (I3) by a finding of the Secretary that a ju-
25 risdiction of importation has implemented poli -
•HR 768 IH
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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 gears and amended or revoked as required.
9 SEC. 4. ESTABLISHMENT OF THE CARBON DIVIDEND TRUST
10 FUND.
11 (a.) IN GENERM,.—Subchapter A of chapter 98 of the
12 Internal Revenue Code of 1986 is amended by adding at
13 the encl the following:
14 "SEC. 9512. CARBON DIVIDEND TRUST FUND.
15 "(a) ESTr1BTASHIMENT A�TD FINDING.—There is
16 hereby established in the Treasury of the Unitecl States
17 a. trust fund to be knomm as the `Carbon Dividend Trust
18 Fund', consisting of such amounts as nlay be appropriated
19 to such trust fend as provided for iri this section.
20 "(b) TRANSFERS TO THE CARBON DIVIDEND TRUST
21 FuNi).—There is hereby appropriated to the Carbon Di -6-
22 dead Trust I+`uncl annolmts equal to the fees received into
23 the Treasury less any amounts reftunded or paid under
24 section 9902(d) or 9906 of chapter 101 for each month.
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1 "(c) EYPENDITURES. Amounts iu the trust fiend
2 shall be available for the following purposes:
3 "(1) Ai)miNISTRATIVE E,-U'ENSES.—So n-uch of
4 the eXI)Onses necessary to administer the Carbon
5 DMdend Trust Fi.md f:or each year, as does not e -
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 Fulid
12 during such year, and
13 "(B) in the case of arty calendar year
14 thereafter, 2 percent of the 5 -year rolling aver -
15 age of the anunults appropriated to the Carbon
16 Dividend Trust Fund, and
17 "(2) DTIII+R ADMINISTIUTNE EXPENSES.—So
18 much of the expenses, as are necessary to aclnuriister
19 chapter 1.01 for any year as does not to exceed 0.60
20 percent of the amounts appropriated to the Carbon
21 Di-ridend '1 hist Fund for the previous ,year, and fur -
22 then limited as follows:
23 "(A) The Department of the Treasury.
24 "(B) The Social Security Administration.
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The Environmental Protection Agett-
2
3
(D) DepaAment of State.
4
"(3) CARTION DIVIDEND PAYMEMrs.-
5
"(A) IN GENEMU,.—From the arnounts in
6
the Carbon Dh�idcnd TrUst Fund nude avail-
7
able tinder paragraphs (1) and (2) of this sub-
8
section For any year, the Secretaij, shall for
9
each montli beginning more than 270 days after
10
the date of the eijactineut of tlie Energy Imlo-
11
nation and Carbon. Dividend Act of 2019, make
12
carbon dividend payments to each eligible indi-
13
-6hial.
14
"(B) PRO-RATA STIR RE.—A carbon di-Ni-
15
lend payinent is one pro-rata share for each
16
adult, and half a pro-r,,ita, share for each child
17
under 19 years old, of amounts available for the
18
month in the Carbon DiAridend Trust Fund,
19
"(C) ELIGIBLE INDMDUJU-J.—The tertri
20
'eligible individual' means, with respect to any
21
month, any natural living person who has a
22
valid- Social SecurjtjT number or taxpayer identi-
23
fication number and is a, citizen or lawffil resi-
24
dent of the United States (other than any indi-
25
iidual who is a, citizen of a.ny possession of the
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1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
34
United States and whose boric fide residence is
outside of the United States). The Secrctal T is
authorized to verify an inclividual's eligibility to
receive a carbon dividend payment.
"(D) FEE TREATMENT OF PAYMENTS.—
Amounts Maid urtuler this subsectim shall be in-
cludible in gross income.
"(E) FEDERAL PROGMUIS AND FEDERAL
ASSTSTED PRocTm i s.—The carbon dividend
amouxlt received by any individual shall not be
taken into account as income and shall not be
taken into account as resources for purposes of
deterinining the eligibility of such individual or
any other individual for benefits or assistance,
or the amount or extent of benefits or assist-
ance, under any Federal program or ruiner an.),
State or local program financed in whole or in
palet ivitl.� Federal funds.
"(F) .ADVANCE PAYMENT.—The SecretaiT
shall transfer to the Carbon Dividend Trust
Pond such ainounts as are necessary for the
disbursement of an advanced carbon dividend to
all eligible individuals .is folloAivs:
"(i) An advanced carbon dividend
shall be the sante as the anticipated first
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1 carbon dhideilcl required to be clistributed
2 under subparagraph (A) and shall be di.s-
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 front
the
carbon dividends
on a
pro -rata
8 basis
over
the first 3 ,years
after
the dis-
9 burseinent of the first carbon dividends.
10 "(d)-1WAIITN1I8TRATIVE AuTIIORITY.—The Secretary
11 shall promulgate rules, guidance, and regulations useful
12 and necessary to implement the Carbon Dividend Trust
13 Fund.".
14 (b) CLERICAL ATAIENDWIENT.—The table of sections
15 for subchapter A of chapter 08 of such Code is amended
16 by addling kit the end the folloiving new item:
"See. 9513. Carbou Dividend Tmst nincl.".
17 SEC. 5. LIMITED DISCLOSURE OF INFORMATION.
18 Section 6103(1) of the Internal Revenue Code of 1986
19 is amended by addling at the enol the following nemT para -
20 graphs:
21 "(23) UmITED D.ISCLOSITRE OF IDENTITY IN -
22 FORIVIATION RELATING TO CARRION DIVIDEND P1lY-
23 MENTS.-
24 "(A) DEPARTTWENT 01.0 TRFASUPtiY.—Indi-
25 vidual identity information shall, without -"Tit-
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1 ten request, be open to inspection by or clisclo-
2 sure to officers and employees of the Depart -
3 went of the Treasury whose official duties re -
4 quire such inspection or disclosiu•e for purposes
5 of achninistering section 951.2 (relating the Car -
6 bon Dividend Trust Fund).
7 "(I3) CONIDIISSIONER OF SOCIAL SECU-
8 RITY.—The Conunissioner of Social Security
9 shall, on `I.itten request, disclose to officers
10 and employees of the Department of the Treas-
11 ur y individual identity information which has
12 been disclosed to the Social Security Adminis-
13 tration as is necessary to achninister section
14 9512.
15 "(C) RESTRICTION 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 Secretar�7 of Energy
24 shall enter into an agreement with the National Academy
25 of Sciences to prepare a report relating to the carbon fee
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1 imposed by section 9902 of the Internal Revenue Code of
2 1986 and the emissions reductions scledlule established
3 under section 9903 of such Code.
4 (b) REPORT REQUTREMEN` S.—Stleh report shall -
5 (1) assess the efficierucy and ef7'ectiveness of the
6 carbon fee in achieving the emissions reduction tax -
7 gets set forth in section 9903 of such Code;
8 (2) describe and inake recommendations on
9 whether the carbon fee rate and annual increases
10 prescribed by section 9902(c) of such Code should
11 be acl_justed in order to optimize the effieieulcy a)Id
12 effectiveness of this Act in achie-ring the emissions
13 reduction targets set forth in section 9903 of such
14 Code;
15 (3) describe the potential of the carbour fee to
16 achieve fixture 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 redlucirug emissions from Ivey sec -
20 tors of the economy, including sectors of the econ-
21 omy that have decreased their carbon emissions, see -
22 tors of the economy that have increased their carbon
23 emissions, and sectors of the economy in «rhicl car -
24 boil emissions have riot clanged;
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1 (5) snake findings and reconnnnendations to
2 Federal departmernts 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) snake findings and i-ecommendatious on ad-
z jesting regulations enacted under the Clean lir 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 progra'm's
effi-
13
ei.ency and
effectiveness in
achieving the goals
set
1.4 forth in this act.
15 (e) REPORT MkDF PUBLICLY AvAIJ ABL14G.—Nat 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 13im ss.—The Secretai;y of Energy
25 shall enter into an agreement with the National Academy
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1 of Sciences and the Adi-ninistra,tor of the Pnvironmental
2 Protection Agency to conduct a, study, mare reconlnleada-
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 RFQuj EAMNTs.—The sttidy eonducted
7 Under subsection (a.) by the National Academy of Sciences
8 shall include analysis, documentation, and determinations
9 on -
10 (1) the carbon fee aril 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 erg;' source on carbon sinks and biodiversity; and
16 (3) the various tyles of biomass that are being
17 ».sed as an energy source.
18 (e) Rj�COMAT aNDATIovs.—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 impa.ct;s of the carbon fee on -
24 (1) increasing greenhouse gas emissions front
25 the rise of biomass as an energy source; and
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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 ree-
5 onlnlerida.tions 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. S. AMENDMENTS TO THE CLEAN AIR ACT.
10 (a.) I\r GENETW,.—Title III of the Clean Air Act (42
11 U.S.C. 7601) is amended by adding at the end the fol -
12 laving:
13 "SEC. 330. SUSPENSION OF REGULATION OF FUELS AND
14 EMISSIONS BASER ON GREENHOUSE GAS EF -
15 FECTS.
16 "(a) I urns.—Ur ess specifically authorized in sec -
17 tion 2027 211, 213, or 231 or this section, if a carbon
18 fee is imposed by section 9902 or 9008 of the Internal
19 Revenue Code of 1986 Avith respect to a covered fuel, the
20 Administrator shall not enforee any rule limiting the elnis-
21 sion of greenhouse gases from the combustion of that fuel
22 inkier this Act (or impose any requirement oil any State
23 to limit such emission) on the basis of the emission's
24 greenhouse gas effects.
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1 "(b) Emissloi\Ts.—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 respeet to a fluorinated greenhouse gas, the Ad-
s nninistrator 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 REGITvi�Tloti.—Notivitlistaiicling
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 unlit the emission of any greenhouse
14 gas because of any adverse impact on health or Avel-
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 greeffllouse 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
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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-
s keeping requirements;
6 "(B) conct-acting or supporting investiga-
7 tions; and
8 "(C) information collection.
9 "(d) EXCEPTION FOR CERTAIN GREENHOUSE GAs
10 EiMSSIONS.—NotANitllstandiilg subsections (a) and (b),
11 nothiiig 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 OOOOa 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 OOOOa, if sueh subpart ap-
19 plied regard -less of the elate on which construe -
20 tion, modification, or reconstruction of the
21 source involved commenced; or
22 44(2) POTNV Treatment Plants (as defined- in
23 section 403.3(x) of title 40, Code of Federal Regtilla-
24 tions).
25 "(e) SUSPENSION EXPIRATION.—
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1 "(1) DETERATINATION.—The Adnihiistrator
2 shall make a determination by 1tlarch 30, 2030, and
3 no less than once every five years thereafter, based
4 on the determination required by sectiail 9903(b) of
5 the Internal Revenue Code of 1986, as to whether
6 cunnilative greenhouse gas emissions from covered
7 fuels subject to twxation 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 einissions for that; period
11 that would have occurred if the emission reduction
12 targets in section 9903(x)(2) of such Code were met.
13 "(2) CONSEQUENCE OF CUIMULATIVE EMIS-
14 SIONS EXCEEDANTCE.—If the Ach-ninistrator deter-
1.5 mines under paragraph (1) that cunntlative greeti-
1.6 house gas emissions froin covered fuels subject to
1.7 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, `Mould
20 have occurred if the emission reduction targets in
21 section 9903(a)(2) of such Cade were met, then the
22 prohibitions in subsection (a) of this section, and in
23 section 21.1(c) (5) of this Act, shall cease to apply.
24 "(f) ASSI7RINC. I NNrIR,ONMENTAL INTEGRITY.—
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1. "(1) AuTITORTTY.—If the Administrator deter -
2 mines pursuant to subsection (e)(]) 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 in et -
6 "(A) subsections (a) and (b) shall cease to
7 apply; an d
8 "(P) 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
1.5 emission reductions targets in section
16 9903(x)(2) of sueh Code, and
17 "(ii) require in such regulations that
18 additional reductions in greenhouse gas
19 emissions are achievecl to f lly 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(x)(2) of such Code.
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1 "(2) DEADLINE FOR FINALIZING REGULA-
2 TIONS.—The Achninistrator shall finalize any regula-
3 tions required by paragTaph (1) not later than two
4 years after the Achninistrator 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 gaired by paragraph (1) (B) (ii) are fully achieved by
10 no later than eight years after the Adininistrator
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 Revenne Code of 1986.".
17 (b) NEW MOTOR ATEHICLES AND NEW MOTOR VEIH-
18 CLE ENGINES.—Section 202(b) of the Clean Air Act (42
19 U.S.C. 7521(b)) is ainended-
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 addling at the end the following:
24 "(5) Notwithstanding subsections (a) and (b) of
25 section 330, the Administrator may—
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1 "(A) limit the emission of any g7eenhouse
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
10 209(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(e)) is amended by addling at the end the fol -
14 loiviig new paragraph:
15 "(5) The Adininistrator shall not, puursuant to this
16 subsection, impose on any manufacturer or processor of
17 fuel a.ny requirement for the purpose of reducing the emis-
18 cion of -any greenhouse gas (as defined in section 9901
19 of the Internal Revenue Code of 1986) produced by com-
20 bastion of the fiiel on the basis of the emission's green -
21 hoose gas effects (as defined in section 9901 of the Inter -
22 nal Revenue Code of 1986).".
23 (d) NONROIm ENGINES AND VEHICLES EMIISSIONS
24 STANDARDS.—Section 213 of the Clean Air Act (42
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1 U.S.C. 7547) is amended by adding at the end the fol -
2 lowing:
3 "(e) GREENHOUSE Gigs ENUSSIONS.—Notivith-
4 standing section 330(x), the Achninistrator may limit the
5 emission of any greenhouse gas (as defined in section
6 9901 of the Internal Revelllle 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) AmCRAIFT EMISSION STANDARDS.—Section 231
12 of the Clean Air Act (42 U.S.C. 7571) is ainended by add -
13 ing at the end the follo A ing neAv subsection:
14 "(d) Notwithstanding subsections (a) and (b) of see -
15 tion 330, the Ach7linistrator may limit the emission of any
16 greenhouse gas (,is defined in section 9901 of the Internal
17 Revenue Code of 1986) on the basis of the emission's
18 gTeenhouse gas effects (as defined in section 9901of the
19 Internal Revenue Code of 1986) from any class or classes
20 of aircraft engines, so long as any suds limitation is not
21 more stringent than the standards adopted by the Inter -
22 national CMI Aviation Organization.".
23 SEC. 9. EFFECTIVE DATE.
24 The amendments made by this Act shall take effect
25 on the elate of the enactment of this Act, except the carbon
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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 ambigtiuty, 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,
m
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