II 

116TH CONGRESS 

1ST SESSION S. 940 

To cap the emissions of greenhouse gases through a requirement to purchase 

carbon permits, to distribute the proceeds of such purchases to eligible 

individuals, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 28, 2019 

Mr. VAN HOLLEN introduced the following bill; which was read twice and 

referred to the Committee on Finance 

A BILL 

To cap the emissions of greenhouse gases through a requirement to purchase carbon permits, to distribute the proceeds of such purchases to eligible individuals, and for 

other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Healthy Climate and 

5 Family Security Act of 2019’’. 

6 SEC. 2. FINDINGS. 

7 The Congress finds the following: 


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1 (1) Carbon dioxide and other greenhouse gas 

2 emissions continue to rise. 

3 (2) The warming of our planet has led to more 

4 frequent, dangerous and expensive extreme weather 

5 events, including heat waves, storms, fires, droughts, 

6 floods and tornadoes. 

7 (3) A 2018 report by the Intergovernmental 

8 Panel on Climate Change (IPCC) recommends that 

9 serious efforts be made to limit global warming to 

10 1.5°C, which would require that CO2 emissions fall 

11 by 45 percent below 2010 levels by 2030, which 

12 would be equivalent to approximately 50 percent 

13 below 2005 levels by 2030. 

14 (4) The atmosphere is a common resource that 

15 belongs equally to all. 

16 (5) Stabilizing the climate can and must be 

17 done in a way that supports vibrant economic 

18 growth and a thriving middle class. 

19 (6) Legislation to address climate change and 

20 accelerate the transition to a clean energy economy 

21 must be fair, transparent and built to last. 


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1 SEC. 3. AUCTION OF CARBON PERMITS AND DISTRIBUTION 

2 OF HEALTHY CLIMATE DIVIDENDS. 

3 (a) IN GENERAL.—The Internal Revenue Code of 

4 1986 is amended by adding at the end the following new 

5 subtitle: 

6 ‘‘Subtitle L—Auction of Carbon 

7 Permits and Distribution of 

8 Healthy Climate Dividends 

‘‘Chapter 101. Cap and Dividend Program Rules. 

‘‘Chapter 102. Healthy Climate Dividends. 

‘‘Chapter 103. Border Adjustments. 

9 ‘‘CHAPTER 101—CAP AND DIVIDEND 

10 PROGRAM RULES 

‘‘Sec. 9901. Definitions. 

‘‘Sec. 9902. Carbon permits. 

‘‘Sec. 9903. Auctions. 

‘‘Sec. 9904. Compliance obligation. 

‘‘Sec. 9905. Penalty for noncompliance. 

‘‘Sec. 9906. Carbon capture and sequestration. 

‘‘Sec. 9907. Trading. 

‘‘Sec. 9908. Banking and borrowing. 

11 ‘‘SEC. 9901. DEFINITIONS. 

12 ‘‘For purposes of this subtitle: 

13 ‘‘(1) ADMINISTRATOR.—The term ‘Adminis14 trator’ means the Administrator of the Environ15 mental Protection Agency. 

16 ‘‘(2) CARBON PERMIT.—The term ‘carbon per17 mit’ means a carbon permit established by the Sec18 retary under section 9902(a). 


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1 ‘‘(3) COVERED ENTITY.—The term ‘covered en2 tity’ means— 

3 ‘‘(A) in the case of crude oil— 

4 ‘‘(i) a refinery operating in the United 

5 States which is designed to serve the pri6 mary purpose of processing liquid fuel 

7 from crude oil, and 

8 ‘‘(ii) any importer of any petroleum or 

9 petroleum product (not including crude oil) 

10 into the United States, 

11 ‘‘(B) in the case of coal— 

12 ‘‘(i) any coal mine operating in the 

13 United States, and 

14 ‘‘(ii) any importer of coal into the 

15 United States, and 

16 ‘‘(C) in the case of natural gas— 

17 ‘‘(i) any person required to submit a 

18 report to the Energy Information Agency 

19 on Form 176 by reason of delivering nat20 ural gas to an end user, and 

21 ‘‘(ii) any natural gas processor not de22 scribed in clause (i) with respect to sales of 

23 natural gas in the United States. 

24 ‘‘(4) COVERED FUEL.—The term ‘covered fuel’ 

25 means crude oil, natural gas, coal, or any other 


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1 product derived therefrom for use as a combustible 

2 fuel offered for sale in United States markets. 

3 ‘‘(5) CRUDE OIL.—The term ‘crude oil’ includes 

4 crude oil condensates, natural gasoline, shale oil, any 

5 bitumen or bituminous mixture, any oil derived from 

6 a bitumen or bituminous mixture, and any oil de7 rived from kerogen-bearing sources. 

8 ‘‘(6) FAIR MARKET VALUE.—The term ‘fair 

9 market value’ means the average auction price for 

10 carbon permits during the 4 quarters immediately 

11 preceding a failure to surrender, when required 

12 under section 9904, the required number of carbon 

13 permits under such section. 

14 ‘‘(7) STATE.—The term ‘State’ means the sev15 eral States, the District of Columbia, the Common16 wealth of Puerto Rico, the United States Virgin Is17 lands, Guam, American Samoa, the Commonwealth 

18 of the Northern Mariana Islands, and any other 

19 commonwealth, territory, or possession of the United 

20 States. 

21 ‘‘(8) VINTAGE YEAR.—The term ‘vintage year’ 

22 means the calendar year for which a carbon permit 

23 is established under section 9902. 


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1 ‘‘SEC. 9902. CARBON PERMITS. 

2 ‘‘(a) IN GENERAL.—The Secretary, in consultation 

3 with the Administrator, shall establish a separate quantity 

4 of carbon permits for calendar year 2020 and each cal5 endar year thereafter, as set forth under subsection (b). 

6 ‘‘(b) EMISSIONS REDUCTION SCHEDULE.— 

7 ‘‘(1) IN GENERAL.—The quantity of carbon 

8 permits established by the Secretary, in consultation 

9 with the Administrator, under subsection (a) for any 

10 calendar year before 2040 that is between the near11 est target years specified in paragraph (2) preceding 

12 and succeeding such calendar year shall be the quan13 tity of such permits that represents an equal, pro 

14 rata reduction from the preceding year to the suc15 ceeding year. 

16 ‘‘(2) TARGETS.— 

17 ‘‘(A) INITIAL TARGET.—The quantity of 

18 carbon permits established for 2020 shall be 

19 equal to 12.5 percent less than the number of 

20 metric tons of carbon dioxide emitted in the 

21 United States in 2005. 

22 ‘‘(B) DECADAL TARGETS.—The quantity 

23 of carbon permits established for— 

24 ‘‘(i) 2025 shall be equal to 35 percent 

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1 bon dioxide emitted in the United States in 

2 2005, 

3 ‘‘(ii) 2030 shall be equal to 50 percent 

4 less than the number of metric tons of car5 bon dioxide emitted in the United States in 

6 2005, 

7 ‘‘(iii) 2035 shall be equal to 60 per8 cent less than the number of metric tons 

9 of carbon dioxide emitted in the United 

10 States in 2005, and 

11 ‘‘(iv) 2040 shall be equal to 80 per12 cent less than the number of metric tons 

13 of carbon dioxide emitted in the United 

14 States in 2005. 

15 ‘‘(3) REPORTS.— 

16 ‘‘(A) CALENDAR YEAR 2038.—In 2038 the 

17 Secretary, after consultation with the Adminis18 trator, shall submit a report to Congress mak19 ing recommendations concerning the program 

20 established under this subtitle for years after 

21 2040, including the quantity of carbon permits 

22 to be established and any reductions that may 

23 be necessary to ensure a healthy climate. 

24 ‘‘(B) AVERTING CATASTROPHIC CLIMATIC

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1 gress if the Secretary, after consultation with 

2 the Administrator, determines the emissions re3 ductions targets under this subsection should be 

4 revised in order to avert catastrophic climate 

5 impacts. Such report shall include rec6 ommended revisions to the existing emissions 

7 reduction schedule and the basis for those rec8 ommendations. 

9 ‘‘(c) IDENTIFICATION NUMBERS.—The Secretary 

10 shall assign to each carbon permit established under sub11 section (a) a unique identification number that includes 

12 the vintage year for that carbon permit. 

13 ‘‘(d) LEGAL STATUS OF CARBON PERMITS.— 

14 ‘‘(1) IN GENERAL.—A carbon permit does not 

15 constitute a property right. 

16 ‘‘(2) TERMINATION OR LIMITATION.—Nothing 

17 in this subtitle or any other provision of law shall be 

18 construed to limit or alter the authority of the 

19 United States, including the Secretary acting pursu20 ant to statutory authority, to terminate or limit a 

21 carbon permit. 

22 ‘‘(3) OTHER PROVISIONS UNAFFECTED.—Noth23 ing in this subtitle relating to carbon permits issued 

24 under this section shall affect the application of any 

25 other provision of law to a covered entity (including 


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1 the Clean Air Act), or the responsibility for a cov2 ered entity to comply with any such provision of law. 

3 Regional and State greenhouse gas initiatives are 

4 not preempted by this subtitle. 

5 ‘‘(e) REGULATIONS.—Not later than December 31, 

6 2020, the Secretary shall promulgate regulations to carry 

7 out the provisions of this subtitle. 

8 ‘‘SEC. 9903. AUCTIONS. 

9 ‘‘(a) PERIODIC AUCTIONS.—The Secretary shall con10 duct periodic public auctions of carbon permits established 

11 under section 9902(a). The Secretary shall conduct at 

12 least 4 such auctions in each year for which carbon per13 mits are established. 

14 ‘‘(b) AUCTION RULES.—The Secretary shall— 

15 ‘‘(1) limit auction participation only to covered 

16 entities, 

17 ‘‘(2) establish a limit on the amount of carbon 

18 permits that can be purchased by a single entity at 

19 each auction and an aggregate limit on the total 

20 amount of permits that can be held by a single enti21 ty at any one time that— 

22 ‘‘(A) reflects anticipated sector and partici23 pant demand, 

24 ‘‘(B) prevents speculation, manipulation, 

25 or hoarding of permits, and 


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1 ‘‘(C) does not interfere with normal mar2 ket competition, and 

3 ‘‘(3) have the authority to set a minimum per4 mit price at auction. 

5 ‘‘(c) UNSOLD PERMITS.—Any carbon permit unsold 

6 at auction may be offered at the next quarterly auction 

7 in the calendar year. Any carbon permit unsold after the 

8 last auction for a calendar year shall be transferred to the 

9 reserve established under section 9908. 

10 ‘‘SEC. 9904. COMPLIANCE OBLIGATION. 

11 ‘‘(a) IN GENERAL.—Not later than April 1, 2021, 

12 and April 1 of each year thereafter, each covered entity 

13 shall surrender to the Secretary a quantity of carbon per14 mits at least as great as the number of metric tons of 

15 carbon dioxide that the Secretary, in consultation with the 

16 Administrator, determines would be emitted by the com17 bustion of covered fuels with respect to which the covered 

18 entity made the first sale in United States markets during 

19 the previous calendar year. 

20 ‘‘(b) USE TREATED AS SALE.—For purposes of sub21 section (a), consumption for an emitting use by the cov22 ered entity of covered fuels produced by the covered entity 

23 shall be treated as a first sale. 

24 ‘‘(c) EXEMPTION.—A covered entity shall not have to 

25 surrender a carbon permit for the sale of a covered fuel 


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1 consumed for a non-emitting use, as defined and verified 

2 by the Secretary in consultation with the Administrator, 

3 unless such covered fuel is sold to a person issued carbon 

4 permits under section 9906. 

5 ‘‘SEC. 9905. PENALTY FOR NONCOMPLIANCE. 

6 ‘‘(a) IN GENERAL.—Any covered entity that fails for 

7 any year to surrender, by the deadline described in section 

8 9904, one or more of the carbon permits due pursuant 

9 to such section shall be liable for payment to the Secretary 

10 of a penalty in the amount described in subsection (b). 

11 ‘‘(b) AMOUNT.—The amount of a penalty required to 

12 be paid under subsection (a) shall be equal to the product 

13 obtained by multiplying— 

14 ‘‘(1) the number of carbon permits that the cov15 ered entity failed to surrender by the deadline, by 

16 ‘‘(2) 3 times the fair market value of carbon 

17 permits issued for emissions occurring in the cal18 endar year for which the carbon permits were due. 

19 ‘‘(c) TIMING.—A penalty required under this section 

20 shall be immediately due and payable to the Secretary, 

21 without demand, in accordance with regulations promul22 gated by the Secretary, which shall be issued not later 

23 than 1 year after the date of enactment of this subtitle. 

24 ‘‘(d) NO EFFECT ON LIABILITY.—A penalty due and 

25 payable by the covered entity under this section shall not 


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1 diminish the liability of the covered entity for any fine, 

2 penalty, or assessment against the covered entity for the 

3 same violation under any other provision of law. 

4 ‘‘(e) PENALTY NOT DEDUCTIBLE.—No deduction 

5 shall be allowed under subtitle A for a penalty paid under 

6 this section. 

7 ‘‘SEC. 9906. CARBON CAPTURE AND SEQUESTRATION. 

8 ‘‘(a) IN GENERAL.—The Secretary shall issue a car9 bon permit to any person who the Secretary, in consulta10 tion with the Administrator, determines has safely and 

11 verifiably captured and sequestered carbon dioxide from 

12 the combustion of covered fuels in the United States. 

13 ‘‘(b) QUANTITY.—The quantity of each permit issued 

14 under subsection (a) shall be in the amount equivalent to 

15 the number of metric tons of carbon dioxide so captured 

16 and sequestered. 

17 ‘‘(c) COORDINATION.—The quantity of permits 

18 issued under this section shall be in addition to the quan19 tity of permits established under section 9902(a). 

20 ‘‘SEC. 9907. TRADING. 

21 ‘‘(a) PERMITTED TRANSACTIONS.—The lawful holder 

22 of a carbon permit may— 

23 ‘‘(1) hold the carbon permit, subject to the lim24 its established by the Secretary under section 

25 9903(b)(2), or 


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1 ‘‘(2) sell, exchange, or transfer the carbon per2 mit to a covered entity consistent with the limits es3 tablished by the Secretary under section 9903(b)(2). 

4 ‘‘(b) EFFECTIVENESS OF CARBON PERMIT TRANS5 FERS.—No transfer of a carbon permit shall be effective 

6 until a written certification of the transfer, signed by a 

7 responsible official of the transferor, is received and re8 corded by the Secretary in accordance with regulations 

9 promulgated under section 9902(e). 

10 ‘‘(c) CARBON PERMIT TRACKING SYSTEM.—The reg11 ulations promulgated under section 9902(e) shall include 

12 a system for issuing, recording, holding, and tracking car13 bon permits that shall specify all necessary procedures and 

14 requirements for an orderly and competitive functioning 

15 of the carbon permit system. Such regulations shall pro16 vide for appropriate publication of the information in the 

17 system on the Internet. 

18 ‘‘SEC. 9908. BANKING AND BORROWING. 

19 ‘‘(a) BANKING.—A carbon permit may be used to 

20 meet the compliance obligation requirements of section 

21 9904 for emissions in— 

22 ‘‘(1) the vintage year for the carbon permit, or 

23 ‘‘(2) any calendar year subsequent to the vin24 tage year for the carbon permit in accordance with 

25 subsection (b). 


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1 ‘‘(b) RESERVE.—The Secretary shall establish a re2 serve for carbon permits. Carbon permits transferred into 

3 the reserve shall be available in the manner determined 

4 by the Secretary when the Secretary determines that price 

5 point for carbon permits determined under subsection (d) 

6 is met and additional carbon permit supply is needed to 

7 stabilize the auction price. Permits in the reserve shall be 

8 used on a first in, first out basis. 

9 ‘‘(c) EXPIRATION.—A carbon permit shall not expire 

10 unless— 

11 ‘‘(1) it is surrendered to the Secretary under 

12 section 9904 or section 9907(a)(3), 

13 ‘‘(2) it has remained in the reserve for 5 years 

14 after being transferred into the reserve, or 

15 ‘‘(3) the Secretary determines by regulation 

16 that expiration is necessary to ensure the authen17 ticity and integrity of carbon permits or the carbon 

18 permit tracking system. 

19 ‘‘(d) BORROWING FUTURE VINTAGE YEAR CARBON

20 PERMITS.— 

21 ‘‘(1) IN GENERAL.—If the auction price for car22 bon permits increases by more than 50 percent 

23 above the average auction price for carbon permits 

24 during the preceding two years (or, if before the 

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1 erage auction price for carbon permits during the 

2 preceding auctions), the Secretary shall auction as 

3 many additional carbon permits as are necessary to 

4 stabilize the auction price. 

5 ‘‘(2) SPECIAL RULES.— 

6 ‘‘(A) COORDINATION WITH RESERVE.—Ad7 ditional permits may not be auctioned under 

8 paragraph (1) until after all available permits 

9 in the reserve for carbon permits established 

10 under subsection (b) have been used. 

11 ‘‘(B) REDUCTION IN VINTAGE YEAR PER12 MITS.—Any carbon permits made available 

13 under this subsection shall result in an equiva14 lent reduction in the aggregate amount of car15 bon permits made available in vintage years 

16 2030 through 2040 as set forth in section 

17 9902, and the Secretary shall reduce the num18 ber of carbon permits by an equal percentage in 

19 each of those vintage years. 

20 ‘‘CHAPTER 102—HEALTHY CLIMATE 

21 DIVIDENDS 

‘‘Sec. 9911. Healthy Climate Trust Fund. 

‘‘Sec. 9912. Healthy Climate Dividend Payments. 

‘‘Sec. 9913. Transparency. 

22 ‘‘SEC. 9911. HEALTHY CLIMATE TRUST FUND. 

23 ‘‘(a) ESTABLISHMENT.—There is established in the 

24 Treasury of the United States a trust fund to be known 


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1 as the ‘Healthy Climate Trust Fund’, consisting of such 

2 amounts as may be appropriated to such trust fund as 

3 provided for in this section. 

4 ‘‘(b) TRANSFERS.— 

5 ‘‘(1) PROCEED AMOUNTS.—There are appro6 priated to the Healthy Climate Trust Fund amounts 

7 equivalent to funds received as proceeds under sec8 tion 9903. 

9 ‘‘(2) PENALTY AMOUNTS.—There are appro10 priated to the Healthy Climate Trust Fund amounts 

11 equivalent to funds received as penalties under sec12 tion 9905. 

13 ‘‘(c) EXPENDITURES.— 

14 ‘‘(1) ADMINISTRATIVE EXPENSES.—Such 

15 amounts as may be necessary from the Healthy Cli16 mate Trust Fund shall be available to pay the ad17 ministrative expenses necessary to carry out this sec18 tion for each month, but not exceeding the amount 

19 of interest credited to the trust fund under section 

20 9602. 

21 ‘‘(2) HEALTHY CLIMATE DIVIDEND PAY22 MENTS.—Amounts in the Healthy Climate Trust 

23 Fund not used under paragraph (1) for any month 

24 shall be available for making Healthy Climate Divi25 dend Payments under section 9912. 


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1 ‘‘SEC. 9912. HEALTHY CLIMATE DIVIDEND PAYMENTS. 

2 ‘‘(a) IN GENERAL.—For purposes of this section: 

3 ‘‘(1) HEALTHY CLIMATE DIVIDEND PAY4 MENT.—The term ‘Healthy Climate Dividend Pay5 ment’ means the individual pro-rata share, as deter6 mined by the Secretary, of amounts available for any 

7 quarter in the Healthy Climate Trust Fund under 

8 section 9911(c)(2). For purposes of the preceding 

9 sentence, the amounts available for any quarter shall 

10 be the fraction of the total amount made available 

11 from an auction conducted under section 9903— 

12 ‘‘(A) the numerator of which is 1, and 

13 ‘‘(B) the denominator of which is the num14 ber of quarters in the period beginning with the 

15 quarter in which such auction is conducted and 

16 ending with the quarter before the quarter in 

17 which the next such auction is scheduled to be 

18 conducted. 

19 ‘‘(2) ELIGIBLE INDIVIDUAL.— 

20 ‘‘(A) IN GENERAL.—The term ‘eligible in21 dividual’ means, with respect to any quarter, 

22 any individual with a valid social security num23 ber (other than a nonresident alien individual) 

24 who is lawfully present in the United States for 

25 such quarter, as determined and verified by the 

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1 eral entity the Secretary determines appro2 priate. 

3 ‘‘(B) OPT OUT.—An individual may elect 

4 not to be treated as an eligible individual. 

5 ‘‘(b) PAYMENT OF HEALTHY CLIMATE DIVIDEND.— 

6 From amounts made available under section 9911(c)(2), 

7 the Secretary shall make a Healthy Climate Dividend Pay8 ment not later than the end of the calendar quarter fol9 lowing the calendar quarter in which such amounts are 

10 appropriated to the Healthy Climate Trust Fund under 

11 section 9911 to each individual who is an eligible indi12 vidual for that quarter. Such payments shall be made by 

13 electronic means to the maximum extent practicable. 

14 ‘‘(c) EXCLUSION FROM GROSS INCOME.—Gross in15 come shall not include any Healthy Climate Dividend paid 

16 under this section. 

17 ‘‘(d) REGULATIONS.—The Secretary shall prescribe 

18 such regulations and other guidance as may be necessary 

19 or appropriate to carry out this section. 

20 ‘‘SEC. 9913. TRANSPARENCY. 

21 ‘‘(a) REPORT TO CONGRESS.—Not later than June 

22 30, 2021, and at least annually thereafter, the Secretary 

23 shall transmit to Congress a report accounting for the dis24 position of amounts in the Healthy Climate Trust Fund 

25 in the previous calendar year. 


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1 ‘‘(b) HEALTHY CLIMATE TRUST FUND WEBSITE.— 

2 Not later than 90 days after the date of the enactment 

3 of this subtitle, the Secretary shall establish and maintain 

4 a website to provide the public with information on the 

5 disposition of any amounts in the Healthy Climate Trust 

6 Fund. 

7 ‘‘CHAPTER 103—BORDER ADJUSTMENTS 

‘‘Sec. 9921. Carbon equivalency fee. 

‘‘Sec. 9922. Definitions. 

‘‘Sec. 9923. Sense of Congress. 

8 ‘‘SEC. 9921. CARBON EQUIVALENCY FEE. 

9 ‘‘(a) IMPORTS.—The Secretary shall impose carbon 

10 equivalency fees to be collected by the Commissioner re11 sponsible for U.S. Customs and Border Control on imports 

12 of carbon-intensive goods. The amount of the carbon 

13 equivalency fee shall be equal to the cost that domestic 

14 producers of a comparable carbon-intensive good incur as 

15 a result of— 

16 ‘‘(1) prices paid in the acquisition of carbon 

17 permits by covered entities under this subtitle, and 

18 ‘‘(2) carbon equivalency fees paid by importers 

19 of carbon-intensive goods used in the production of 

20 the comparable carbon-intensive good. 

21 ‘‘(b) PAYMENTS TO EXPORTERS.—The Secretary 

22 shall pay without interest to persons exporting from the 

23 United States carbon-intensive goods produced in the 

24 United States. The amount of the payment shall be equal 


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1 to the cost that domestic producers of the carbon-intensive 

2 good incur as a result of— 

3 ‘‘(1) prices paid in the acquisition of carbon 

4 permits by covered entities under this subtitle, and 

5 ‘‘(2) carbon equivalency fees paid by importers 

6 of carbon-intensive goods used in the production of 

7 the comparable carbon-intensive good. 

8 ‘‘(c) EXPIRATION.—This section shall cease to have 

9 effect at such time as and to the extent that— 

10 ‘‘(1) an international agreement requiring coun11 tries that emit greenhouse gases and produce car12 bon-intensive goods for export markets to adopt 

13 equivalent measures comes into effect, or 

14 ‘‘(2) the country of export has implemented 

15 equivalent measures, as determined by the Sec16 retary, in consultation with the Secretary of State. 

17 ‘‘SEC. 9922. DEFINITIONS. 

18 ‘‘In this chapter: 

19 ‘‘(1) CARBON-INTENSIVE GOOD.—The term 

20 ‘carbon-intensive good’ means a good that, as identi21 fied by the Secretary, in consultation with the Ad22 ministrator, by rule— 

23 ‘‘(A) is a primary product, or 

24 ‘‘(B) is a manufactured item in which one 

25 or more primary products are inputs and the 


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1 cost of production of which in the United States 

2 is significantly increased by reason of the re3 quirements under this subtitle. 

4 ‘‘(2) PRIMARY PRODUCT.—The term ‘primary 

5 product’ means— 

6 ‘‘(A) iron, steel, steel mill products (includ7 ing pipe and tube), aluminum, cement, glass 

8 (including flat, container, and specialty glass 

9 and fiberglass), pulp, paper, chemicals, or in10 dustrial ceramics, and 

11 ‘‘(B) any other manufactured product that 

12 the Secretary, in consultation with the Adminis13 trator, determines— 

14 ‘‘(i) is sold for purposes of further 

15 manufacture, and 

16 ‘‘(ii) generates, in the course of the 

17 manufacture of the product, direct and in18 direct greenhouse gas emissions that are 

19 comparable (on an emissions-per-dollar of 

20 output basis) to emissions generated in the 

21 manufacture or production of a primary 

22 product identified in subparagraph (A). 

23 ‘‘(3) EQUIVALENT MEASURE.—The term ‘equiv24 alent measure’ means a tax, or other regulatory re25 quirement that imposes a cost, on manufacturers of 


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1 carbon-intensive goods located outside the United 

2 States, by reason of greenhouse gas emissions in the 

3 production of such goods by such manufacturers, ap4 proximately equal to the cost imposed by this sub5 title on manufacturers of comparable carbon-inten6 sive goods located in the United States. 

7 ‘‘SEC. 9923. SENSE OF CONGRESS. 

8 ‘‘It is the sense of Congress that the United States 

9 should work proactively under the United Nations Frame10 work Convention on Climate Change and in other appro11 priate fora, to establish binding agreements committing all 

12 major greenhouse gas emitting countries and countries 

13 with globally competitive producers of carbon-intensive 

14 goods to contribute equitably to the reduction of global 

15 greenhouse gas emissions on a schedule and order of mag16 nitude necessary to stabilize the climate.’’. 

17 (b) CLERICAL AMENDMENT.—The table of subtitles 

18 for the Internal Revenue Code of 1986 is amended by add19 ing at the end the following new item: 

‘‘Subtitle L. Auction of Carbon Permits and Distribution of Healthy Climate 

Dividends.’’. 

20 SEC. 4. NON-AUCTION GREENHOUSE GASES. 

21 (a) DEFINITIONS.—In this section: 

22 (1) The term ‘‘Administrator’’ means the Ad23 ministrator of the Environmental Protection Agency. 


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1 (2) The term ‘‘non-auction greenhouse gas’’ re2 fers to the gases included on the list in effect under 

3 subsection (b). 

4 (b) LIST OF NON-AUCTION GREENHOUSE GASES.— 

5 (1) INITIAL LIST.—Not later than 2 years after 

6 the date of the enactment of this Act, the Adminis7 trator, by rule, shall finalize and publish a list 

8 that— 

9 (A) consists of the anthropogenically emit10 ted gases that are determined by the Adminis11 trator to contribute to global warming; and 

12 (B) excludes gases to the extent they are— 

13 (i) carbon dioxide emitted by the com14 bustion of a covered fuel (as such term is 

15 defined in section 9901 of the Internal 

16 Revenue Code of 1986, as added by section 

17 3(a) of this Act); or 

18 (ii) directly attributable to the produc19 tion of animals for food or food products. 

20 (2) UPDATES.—The Administrator shall peri21 odically review and, as appropriate, update the list 

22 under paragraph (1). 

23 (c) REGULATIONS.— 

24 (1) IN GENERAL.—Under the authorities vested 

25 in the Administrator by the Clean Air Act (42 


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1 U.S.C. 7401 et seq.) and any other applicable law 

2 (other than this section), the Administrator shall 

3 promulgate regulations addressing the contribution 

4 of non-auction greenhouse gases to global warming. 

5 (2) INTERNATIONAL COMPETITIVENESS.—In 

6 promulgating regulations under this subsection, the 

7 Administrator shall take into consideration the effect 

8 of such regulations on the international competitive9 ness of businesses and industries of the United 

10 States. 

11 (d) SCHEDULE.— 

12 (1) IN GENERAL.—The regulations under sub13 section (c) shall ensure that— 

14 (A) not later than 4 years after the date 

15 of enactment of this Act, requirements take ef16 fect to regulate sources which, collectively, emit 

17 not less than 25 percent of non-auction green18 house gases emitted in the United States; 

19 (B) not later than 6 years after the date 

20 of enactment of this Act, requirements take ef21 fect to regulate sources which, collectively, emit 

22 not less than 50 percent of non-auction green23 house gases emitted in the United States; 

24 (C) not later than 8 years after the date 

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1 fect to regulate sources which, collectively, emit 

2 not less than 75 percent of non-auction green3 house gases emitted in the United States; and 

4 (D) not later than 10 years after the date 

5 of enactment of this Act, requirements take ef6 fect to regulate sources which, collectively, emit 

7 100 percent of non-auction greenhouse gases 

8 emitted in the United States. 

9 (2) BASELINE.—The percentages specified in 

10 paragraph (1) shall be applied relative to the aggre11 gate quantity of non-auction greenhouse gases emit12 ted in the United States during the calendar year in 

13 which the initial list under subsection (b)(1) is re14 quired to be finalized by such subsection. 

15 (e) PRIORITIES.—In determining priorities for regu16 lating the emissions of non-auction greenhouse gases 

17 under subsection (c), the Administrator shall consider— 

18 (1) the degree to which the gases involved con19 tribute to global warming; and 

20 (2) the speed with which a given reduction 

21 would contribute to stabilizing the climate. 

22 (f) CITIZEN SUITS.—The provisions of section 304 

23 of the Clean Air Act (42 U.S.C. 7604) shall apply with 

24 respect to a violation of a requirement under this section, 

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1 cretionary act or duty under this section, to the same ex2 tent and in the same manner as such provisions apply with 

3 respect to a violation described in subsection (a) of such 

4 section 304 or a failure to perform a non-discretionary act 

5 or duty described in such subsection. 

6 (g) REPORT TO CONGRESS.—Not later than 2 years 

7 after the date of the enactment of this Act, the Adminis8 trator shall submit a report to the Congress identifying 

9 any additions or modifications to statutory provisions 

10 which are needed for the Administrator to effectively ad11 dress the contribution of non-auction greenhouse gases to 

12 global warming. 

13 SEC. 5. DISCLOSURE OF INFORMATION. 

14 (a) LIMITED DISCLOSURE OF IDENTITY.—Subsection 

15 (l) of section 6103 of the Internal Revenue Code of 1986 

16 is amended by adding at the end the following new para17 graph: 

18 ‘‘(23) LIMITED DISCLOSURE OF IDENTITY IN19 FORMATION RELATING TO HEALTHY CLIMATE DIVI20 DEND PAYMENTS.— 

21 ‘‘(A) DEPARTMENT OF THE TREASURY.— 

22 Individual identity information shall, without 

23 written request, be open to inspection by or dis24 closure to officers and employees of the Depart25 ment of the Treasury whose official duties reVerDate Sep 11 2014 21:40 Apr 04, 2019 Jkt 089200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6201 E:\BILLS\S940.IS S940

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1 quire such inspection or disclosure for purposes 

2 of section 9912. 

3 ‘‘(B) COMMISSIONER OF SOCIAL SECU4 RITY.—The Commissioner of Social Security 

5 shall, on written request, disclose to officers 

6 and employees of the Department of the Treas7 ury individual identity information which has 

8 been disclosed to the Social Security Adminis9 tration as provided by paragraph (1) or (5). 

10 ‘‘(C) RESTRICTION ON DISCLOSURE.—In11 formation disclosed under this paragraph shall 

12 be disclosed only for purposes of, and to the ex13 tent necessary in, carrying out section 9912.’’. 

14 (b) CONFORMING AMENDMENTS.—Section 

15 6103(p)(3)(A) of the Internal Revenue Code of 1986 is 

16 amended by striking ‘‘or (18)’’ and inserting ‘‘, (23), or 

17 (21)’’. 

18 SEC. 6. EFFECTIVE DATE. 

19 The amendments made by this Act shall take effect 

20 on the date of the enactment of this Act. 

Æ 


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