Consumers REBATE Act

Summary: Consumers Rebate to ban Emissions and Boost AlTernative Energy Act or the Consumers REBATE Act This bill amends the Internal Revenue Code to impose as of January 1, 2017, an excise tax on the production or importation of a taxable carbon substance (i.e., coal, oil, and natural gas), payable by the producer, miner, or importer of such substance. The tax does not apply to exports of a taxable carbon substance.  The bill requires the Department of the Treasury to: (1) impose carbon equivalency fees on imports of goods containing or produced using a taxable carbon substance; and (2) make quarterly payments, from the amounts deposited pursuant to imposition of the carbon excise tax, to lawful residents of the United States with a valid social security number. 

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Consumers Rebate to ban Emissions 
and Boost AlTernative Energy Act'' or the ``Consumers REBATE Act''.

SEC. 2. EXCISE TAX ON CARBON DIOXIDE CONTENT OF COAL, OIL, AND NATURAL 
              GAS.

    (a) In General.--The Internal Revenue Code of 1986 is amended by 
adding at the end the following:

   ``Subtitle L--Carbon Dioxide Content of Coal, Oil, and Natural Gas

``Sec. 9901. Imposition of tax.
``Sec. 9902. Carbon equivalency fee.
``Sec. 9903. Definitions.
``Sec. 9904. Special rules.

``SEC. 9901. IMPOSITION OF TAX.

    ``(a) In General.--There is hereby imposed a tax on producing at 
the wellhead or mine in the United States, or importing, a taxable 
carbon substance.
    ``(b) Rate of Tax.--
            ``(1) In general.--The tax imposed under subsection (a) 
        shall be the applicable amount per ton of carbon dioxide 
        content of the life-cycle emissions from the taxable carbon 
        substance.
            ``(2) Applicable amount.--For purposes of paragraph (1)--
                    ``(A) For calendar year 2016, the term `applicable 
                amount' means $15.
                    ``(B) For a calendar year after 2016, the term 
                `applicable amount' means the amount in effect under 
                subparagraph (A) for the preceding calendar plus $15.
            ``(3) Target attainment year.--
                    ``(A) In general.--For any calendar year that is a 
                target attainment year, paragraph (2)(B) shall be 
                applied by substituting `zero dollars' for `$15'.
                    ``(B) Target attainment year.--For purposes of 
                subparagraph (A), the term `target attainment year' 
                means any calendar year for which the Secretary of the 
                Treasury, in consultation with the Administrator of the 
                Environmental Protection Agency, determines that the 
                life-cycle emissions from taxable carbon substances in 
                the United States is 50 percent of the life-cycle 
                emissions from taxable carbon substances in the United 
                States in 2005. Each determination under the preceding 
                year shall be made not later than 180 days before the 
                beginning of the calendar year to which it relates.
    ``(c) By Whom Paid.--The tax imposed by subsection (a) shall be 
paid by the producer, miner, or importer of the taxable carbon 
substance.
    ``(d) Regulations.--The Secretary shall issue such regulations as 
may be necessary or appropriate to carry out this subtitle, including 
regulations relating to the timely and efficient issuance of permits 
and collection of payments for such permits.

``SEC. 9902. CARBON EQUIVALENCY FEE.

    ``(a) Purpose.--The purpose of this section is to ensure the 
environmental effectiveness of this subtitle.
    ``(b) Imports.--The Secretary shall impose carbon equivalency fees 
to be collected by the Commissioner responsible for U.S. Customs and 
Border Control on imports of goods containing or produced using a 
taxable carbon substance. The amount of the carbon equivalency fee with 
respect to the import of any good shall be equal to the cost that 
domestic producers of a comparable good incur as a result of--
            ``(1) the tax imposed under section 9901, and
            ``(2) carbon equivalency fees imposed under this subsection 
        on any goods used in the production of such good.
    ``(c) Expiration.--This section shall cease to have effect at such 
time as and to the extent that--
            ``(1) an international agreement requiring countries that 
        emit carbon dioxide or produce goods containing or using 
        taxable carbon substances to adopt equivalent measures comes 
        into effect, or
            ``(2) the country of export has implemented equivalent 
        measures, as determined by the Secretary, in consultation with 
        the Secretary of State.

``SEC. 9903. DEFINITIONS.

    ``For purposes of this subtitle--
            ``(1) Taxable carbon substance.--The term `taxable carbon 
        substance' means--
                    ``(A) coal,
                    ``(B) oil, and
                    ``(C) natural gas.
            ``(2) Coal.--The term `coal' includes lignite, anthracite, 
        bituminous, subbituminous, peat or other forms of what is 
        commonly referred to as coal produced from a mine.
            ``(3) Oil.--The term `oil' includes crude oil condensates, 
        natural gasoline, shale oil, any bitumen or bituminous mixture, 
        any oil derived from a bitumen or bituminous mixture, and any 
        oil derived from kerogen-bearing sources.
            ``(4) Natural gas.--The term `natural gas' means either 
        natural gas unmixed, or any mixture of natural and artificial 
        gas.
            ``(5) Life-cycle emissions.--The term `life-cycle 
        emissions' means total life-cycle emissions of carbon dioxide 
        from a taxable carbon substance which shall be determined by 
        the Administrator of the Environmental Protection Agency.
            ``(6) United states.--The term `United States' means the 
        States, and territory or possession of the United States, and 
        the District of Columbia.

``SEC. 9904. SPECIAL RULES.

    ``(a) Export.--For purposes of this subtitle--
            ``(1) In general.--No tax shall be imposed under section 
        9901 on the production or mining of a taxable carbon substance 
        which is intended for export, including the sale or resale by a 
        purchaser to a second purchaser for export.
            ``(2) Proof of export required.--Rules similar to the rules 
        of section 4221(b) shall apply for purposes of paragraph (1).
            ``(3) Credit or refund where tax paid.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), if--
                            ``(i) tax under section 9901 was paid with 
                        respect to any taxable carbon substance, and
                            ``(ii)(I) such substance was exported by 
                        any person, or
                            ``(II) such substance was used as a 
                        material in the manufacture or production of a 
                        substance which was exported by any person and 
                        which, at the time of export, was a taxable 
                        carbon substance (as defined in section 
                        9902(1)),
                credit or refund (without interest) of such tax shall 
                be allowed or made to the person who paid such tax.
                    ``(B) Condition to allowance.--No credit or refund 
                shall be allowed or made under subparagraph (A) unless 
                the person who paid the tax establishes that he--
                            ``(i) has repaid or agreed to repay the 
                        amount of the tax to the person who exported 
                        the taxable chemical or taxable substance (as 
                        so defined), or
                            ``(ii) has obtained the written consent of 
                        such exporter to the allowance of the credit or 
                        the making of the refund.
            ``(4) Refunds directly to exporter.--The Secretary shall 
        provide, in regulations, the circumstances under which a credit 
        or refund (without interest) of the tax under section 9901 
        shall be allowed or made to the person who exported the taxable 
        carbon substance, where--
                    ``(A) the person who paid the tax waives his claim 
                to the amount of such credit or refund, and
                    ``(B) the person exporting the taxable carbon 
                substance provides such information as the Secretary 
                may require in such regulations.
            ``(5) Regulations.--The Secretary shall prescribe such 
        regulations as may be necessary to carry out the purposes of 
        this subsection.''.
    (b) Quarterly Payments to Eligible Individuals.--
            (1) In general.--From amounts deposited in the Treasury of 
        the United States pursuant to section 9901 of the Internal 
        Revenue Code of 1986, the Secretary shall make a payment for 
        each calendar quarter to each eligible individual.
            (2) Quarterly payment.--For purposes of paragraph (1), the 
        amount of each payment with respect to an eligible individual 
        shall be the amount determined by the Secretary by dividing--
                    (A) for the years 2017 through 2026--
                            (i) the total amount deposited in the 
                        Treasury of the United States pursuant to 
                        section 9901 of the Internal Revenue Code of 
                        1986 for the preceding calendar quarter, by
                            (ii) the total number of eligible 
                        individuals for such preceding calendar 
                        quarter, and
                    (B) for year 2027 and subsequent years--
                            (i) the smaller of--
                                    (I) the average of the total 
                                amounts deposited in the Treasury of 
                                the United States pursuant to section 
                                9901 of the Internal Revenue Code of 
                                1986 for the four quarters of 2026, and
                                    (II) the total amount deposited in 
                                the Treasury of the United States 
                                pursuant to section 9901 of the 
                                Internal Revenue Code of 1986 for the 
                                preceding calendar quarter, by
                            (ii) the total number of eligible 
                        individuals for such preceding calendar 
                        quarter.
            (3) Eligible individual.--For purposes of this subsection, 
        the term ``eligible individual'' means, with respect to any 
        quarter, any individual with a valid social security number 
        (other than a nonresident undocumented individual) who is 
        lawfully present in the United States for such quarter, as 
        determined and verified by the Secretary in consultation with 
        any other Federal entity the Secretary determines appropriate.
            (4) United states.--For purposes of this subsection, the 
        term ``United States'' means the States, and territory or 
        possession of the United States, and the District of Columbia.
    (c) Conforming and Clerical Amendments.--
            (1) The table of subtitles for the Internal Revenue Code of 
        1986 is amended by adding at the end the following new item:

 ``Subtitle L. Carbon Dioxide Content of Coal, Oil, and Natural Gas''.

    (d) Effective Date.--The amendments made by this section shall take 
effect on January 1, 2017.