I 

114TH CONGRESS 

1ST SESSION H. R. 4283 

To amend the Internal Revenue Code of 1986 to impose a tax on coal, 

oil, and natural gas, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 17, 2015 

Mr. MCNERNEY introduced the following bill; which was referred to the 

Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to impose 

a tax on coal, oil, and natural gas, 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 ‘‘Consumers Rebate to 

5 ban Emissions and Boost AlTernative Energy Act’’ or the 

6 ‘‘Consumers REBATE Act’’. 

7 SEC. 2. EXCISE TAX ON CARBON DIOXIDE CONTENT OF 

8 COAL, OIL, AND NATURAL GAS. 

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

10 1986 is amended by adding at the end the following: 


SSpencer on DSK4SPTVN1PROD with BILLS
2 

•HR 4283 IH

1 ‘‘Subtitle L—Carbon Dioxide Con2 tent of Coal, Oil, and Natural 

3 Gas 

‘‘Sec. 9901. Imposition of tax. 

‘‘Sec. 9902. Carbon equivalency fee. 

‘‘Sec. 9903. Definitions. 

‘‘Sec. 9904. Special rules. 

4 ‘‘SEC. 9901. IMPOSITION OF TAX. 

5 ‘‘(a) IN GENERAL.—There is hereby imposed a tax 

6 on producing at the wellhead or mine in the United States, 

7 or importing, a taxable carbon substance. 

8 ‘‘(b) RATE OF TAX.— 

9 ‘‘(1) IN GENERAL.—The tax imposed under 

10 subsection (a) shall be the applicable amount per ton 

11 of carbon dioxide content of the life-cycle emissions 

12 from the taxable carbon substance. 

13 ‘‘(2) APPLICABLE AMOUNT.—For purposes of 

14 paragraph (1)— 

15 ‘‘(A) For calendar year 2016, the term 

16 ‘applicable amount’ means $15. 

17 ‘‘(B) For a calendar year after 2016, the 

18 term ‘applicable amount’ means the amount in 

19 effect under subparagraph (A) for the preceding 

20 calendar plus $15. 

21 ‘‘(3) TARGET ATTAINMENT YEAR.— 

22 ‘‘(A) IN GENERAL.—For any calendar year 

23 that is a target attainment year, paragraph 


SSpencer on DSK4SPTVN1PROD with BILLS
3 

•HR 4283 IH

1 (2)(B) shall be applied by substituting ‘zero 

2 dollars’ for ‘$15’. 

3 ‘‘(B) TARGET ATTAINMENT YEAR.—For 

4 purposes of subparagraph (A), the term ‘target 

5 attainment year’ means any calendar year for 

6 which the Secretary of the Treasury, in con7 sultation with the Administrator of the Envi8 ronmental Protection Agency, determines that 

9 the life-cycle emissions from taxable carbon 

10 substances in the United States is 50 percent 

11 of the life-cycle emissions from taxable carbon 

12 substances in the United States in 2005. Each 

13 determination under the preceding year shall be 

14 made not later than 180 days before the begin15 ning of the calendar year to which it relates. 

16 ‘‘(c) BY WHOM PAID.—The tax imposed by sub17 section (a) shall be paid by the producer, miner, or im18 porter of the taxable carbon substance. 

19 ‘‘(d) REGULATIONS.—The Secretary shall issue such 

20 regulations as may be necessary or appropriate to carry 

21 out this subtitle, including regulations relating to the time22 ly and efficient issuance of permits and collection of pay23 ments for such permits. 


SSpencer on DSK4SPTVN1PROD with BILLS
4 

•HR 4283 IH

1 ‘‘SEC. 9902. CARBON EQUIVALENCY FEE. 

2 ‘‘(a) PURPOSE.—The purpose of this section is to en3 sure the environmental effectiveness of this subtitle. 

4 ‘‘(b) IMPORTS.—The Secretary shall impose carbon 

5 equivalency fees to be collected by the Commissioner re6 sponsible for U.S. Customs and Border Control on imports 

7 of goods containing or produced using a taxable carbon 

8 substance. The amount of the carbon equivalency fee with 

9 respect to the import of any good shall be equal to the 

10 cost that domestic producers of a comparable good incur 

11 as a result of— 

12 ‘‘(1) the tax imposed under section 9901, and 

13 ‘‘(2) carbon equivalency fees imposed under this 

14 subsection on any goods used in the production of 

15 such good. 

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

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

18 ‘‘(1) an international agreement requiring coun19 tries that emit carbon dioxide or produce goods con20 taining or using taxable carbon substances to adopt 

21 equivalent measures comes into effect, or 

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

23 equivalent measures, as determined by the Sec24 retary, in consultation with the Secretary of State. 

25 ‘‘SEC. 9903. DEFINITIONS. 

26 ‘‘For purposes of this subtitle— 


SSpencer on DSK4SPTVN1PROD with BILLS
5 

•HR 4283 IH

1 ‘‘(1) TAXABLE CARBON SUBSTANCE.—The term 

2 ‘taxable carbon substance’ means— 

3 ‘‘(A) coal, 

4 ‘‘(B) oil, and 

5 ‘‘(C) natural gas. 

6 ‘‘(2) COAL.—The term ‘coal’ includes lignite, 

7 anthracite, bituminous, subbituminous, peat or other 

8 forms of what is commonly referred to as coal pro9 duced from a mine. 

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

11 condensates, natural gasoline, shale oil, any bitumen 

12 or bituminous mixture, any oil derived from a bitu13 men or bituminous mixture, and any oil derived 

14 from kerogen-bearing sources. 

15 ‘‘(4) NATURAL GAS.—The term ‘natural gas’ 

16 means either natural gas unmixed, or any mixture of 

17 natural and artificial gas. 

18 ‘‘(5) LIFE-CYCLE EMISSIONS.—The term ‘life19 cycle emissions’ means total life-cycle emissions of 

20 carbon dioxide from a taxable carbon substance 

21 which shall be determined by the Administrator of 

22 the Environmental Protection Agency. 

23 ‘‘(6) UNITED STATES.—The term ‘United 

24 States’ means the States, and territory or possession 

25 of the United States, and the District of Columbia. 


SSpencer on DSK4SPTVN1PROD with BILLS
6 

•HR 4283 IH

1 ‘‘SEC. 9904. SPECIAL RULES. 

2 ‘‘(a) EXPORT.—For purposes of this subtitle— 

3 ‘‘(1) IN GENERAL.—No tax shall be imposed 

4 under section 9901 on the production or mining of 

5 a taxable carbon substance which is intended for ex6 port, including the sale or resale by a purchaser to 

7 a second purchaser for export. 

8 ‘‘(2) PROOF OF EXPORT REQUIRED.—Rules 

9 similar to the rules of section 4221(b) shall apply for 

10 purposes of paragraph (1). 

11 ‘‘(3) CREDIT OR REFUND WHERE TAX PAID.— 

12 ‘‘(A) IN GENERAL.—Except as provided in 

13 subparagraph (B), if— 

14 ‘‘(i) tax under section 9901 was paid 

15 with respect to any taxable carbon sub16 stance, and 

17 ‘‘(ii)(I) such substance was exported 

18 by any person, or 

19 ‘‘(II) such substance was used as a 

20 material in the manufacture or production 

21 of a substance which was exported by any 

22 person and which, at the time of export, 

23 was a taxable carbon substance (as defined 

24 in section 9902(1)), 


SSpencer on DSK4SPTVN1PROD with BILLS
7 

•HR 4283 IH

1 credit or refund (without interest) of such tax 

2 shall be allowed or made to the person who paid 

3 such tax. 

4 ‘‘(B) CONDITION TO ALLOWANCE.—No 

5 credit or refund shall be allowed or made under 

6 subparagraph (A) unless the person who paid 

7 the tax establishes that he— 

8 ‘‘(i) has repaid or agreed to repay the 

9 amount of the tax to the person who ex10 ported the taxable chemical or taxable sub11 stance (as so defined), or 

12 ‘‘(ii) has obtained the written consent 

13 of such exporter to the allowance of the 

14 credit or the making of the refund. 

15 ‘‘(4) REFUNDS DIRECTLY TO EXPORTER.—The 

16 Secretary shall provide, in regulations, the cir17 cumstances under which a credit or refund (without 

18 interest) of the tax under section 9901 shall be al19 lowed or made to the person who exported the tax20 able carbon substance, where— 

21 ‘‘(A) the person who paid the tax waives 

22 his claim to the amount of such credit or re23 fund, and 


SSpencer on DSK4SPTVN1PROD with BILLS
8 

•HR 4283 IH

1 ‘‘(B) the person exporting the taxable car2 bon substance provides such information as the 

3 Secretary may require in such regulations. 

4 ‘‘(5) REGULATIONS.—The Secretary shall pre5 scribe such regulations as may be necessary to carry 

6 out the purposes of this subsection.’’. 

7 (b) QUARTERLY PAYMENTS TO ELIGIBLE INDIVID8 UALS.— 

9 (1) IN GENERAL.—From amounts deposited in 

10 the Treasury of the United States pursuant to sec11 tion 9901 of the Internal Revenue Code of 1986, the 

12 Secretary shall make a payment for each calendar 

13 quarter to each eligible individual. 

14 (2) QUARTERLY PAYMENT.—For purposes of 

15 paragraph (1), the amount of each payment with re16 spect to an eligible individual shall be the amount 

17 determined by the Secretary by dividing— 

18 (A) for the years 2017 through 2026— 

19 (i) the total amount deposited in the 

20 Treasury of the United States pursuant to 

21 section 9901 of the Internal Revenue Code 

22 of 1986 for the preceding calendar quarter, 

23 by 


SSpencer on DSK4SPTVN1PROD with BILLS
9 

•HR 4283 IH

1 (ii) the total number of eligible indi2 viduals for such preceding calendar quar3 ter, and 

4 (B) for year 2027 and subsequent years— 

5 (i) the smaller of— 

6 (I) the average of the total 

7 amounts deposited in the Treasury of 

8 the United States pursuant to section 

9 9901 of the Internal Revenue Code of 

10 1986 for the four quarters of 2026, 

11 and 

12 (II) the total amount deposited in 

13 the Treasury of the United States 

14 pursuant to section 9901 of the Inter15 nal Revenue Code of 1986 for the pre16 ceding calendar quarter, by 

17 (ii) the total number of eligible indi18 viduals for such preceding calendar quar19 ter. 

20 (3) ELIGIBLE INDIVIDUAL.—For purposes of 

21 this subsection, the term ‘‘eligible individual’’ means, 

22 with respect to any quarter, any individual with a 

23 valid social security number (other than a non24 resident undocumented individual) who is lawfully 

25 present in the United States for such quarter, as deVerDate Sep 11 2014 04:24 Dec 22, 2015 Jkt 059200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H4283.IH H4283

SSpencer on DSK4SPTVN1PROD with BILLS
10 

•HR 4283 IH

1 termined and verified by the Secretary in consulta2 tion with any other Federal entity the Secretary de3 termines appropriate. 

4 (4) UNITED STATES.—For purposes of this 

5 subsection, the term ‘‘United States’’ means the 

6 States, and territory or possession of the United 

7 States, and the District of Columbia. 

8 (c) CONFORMING AND CLERICAL AMENDMENTS.— 

9 (1) The table of subtitles for the Internal Rev10 enue Code of 1986 is amended by adding at the end 

11 the following new item: 

‘‘Subtitle L. Carbon Dioxide Content of Coal, Oil, and Natural Gas’’. 

12 (d) EFFECTIVE DATE.—The amendments made by 

13 this section shall take effect on January 1, 2017. 

Æ 


SSpencer on DSK4SPTVN1PROD with BILLS