II 

118TH CONGRESS 

2D SESSION S. 5495 

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 

DECEMBER 11, 2024 

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 2024’’. 

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, reaching 

12 net zero by the middle of this century. 

13 (4) The atmosphere is a common resource that 

14 belongs equally to all. 

15 (5) Stabilizing the climate can and must be 

16 done in a way that supports vibrant economic 

17 growth and a thriving middle class. 

18 (6) Stabilizing the climate can and must be 

19 done in a way that supports environmental justice 

20 by reducing pollution affecting communities that 

21 have suffered disproportionately from hazards aris22 ing from the extraction and combustion of fossil 

23 fuels and supports community right-to-know report24 ing on emissions from fossil fuel combustion. 


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1 (7) Legislation to address climate change and 

2 accelerate the transition to a clean energy economy 

3 must be fair, transparent and built to last. 

4 SEC. 3. AUCTION OF CARBON PERMITS AND DISTRIBUTION 

5 OF HEALTHY CLIMATE DIVIDENDS. 

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

7 1986 is amended by adding at the end the following new 

8 subtitle: 

9 ‘‘Subtitle L—Auction of Carbon 

10 Permits and Distribution of 

11 Healthy Climate Dividends 

‘‘Chapter 101. Cap and Dividend Program Rules. 

‘‘Chapter 102. Healthy Climate Dividends. 

‘‘Chapter 103. Border Adjustments. 

12 ‘‘CHAPTER 101—CAP AND DIVIDEND 

13 PROGRAM RULES 

‘‘Sec. 9901. Definitions. 

‘‘Sec. 9902. Carbon permits. 

‘‘Sec. 9903. Auctions. 

‘‘Sec. 9904. Compliance obligation. 

‘‘Sec. 9905. Penalty for noncompliance. 

‘‘Sec. 9906. Transfers. 

‘‘Sec. 9907. Banking and borrowing. 

‘‘Sec. 9908. Environmental justice. 

14 ‘‘SEC. 9901. DEFINITIONS. 

15 ‘‘For purposes of this subtitle: 

16 ‘‘(1) ADMINISTRATOR.—The term ‘Adminis17 trator’ means the Administrator of the Environ18 mental Protection Agency. 


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1 ‘‘(2) CARBON PERMIT.—The term ‘carbon per2 mit’ means a carbon permit established by the Sec3 retary under section 9902(a). 

4 ‘‘(3) COVERED ENTITY.—The term ‘covered en5 tity’ means— 

6 ‘‘(A) in the case of crude oil— 

7 ‘‘(i) any producer of crude oil oper8 ating in the United States, and 

9 ‘‘(ii) any importer of crude oil, petro10 leum, or any petroleum product into the 

11 United States, 

12 ‘‘(B) in the case of coal— 

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

14 United States, and 

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

16 United States, and 

17 ‘‘(C) in the case of natural gas— 

18 ‘‘(i) any entity required to submit a 

19 report to the Energy Information Agency 

20 on Form 176 by reason of delivering nat21 ural gas to an end user, and 

22 ‘‘(ii) any natural gas processor not de23 scribed in clause (i) with respect to sales of 

24 natural gas in the United States. 


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

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

3 product derived therefrom for use as a combustible 

4 fuel offered for sale in United States markets. 

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

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

7 bitumen or bituminous mixture, any oil derived from 

8 a bitumen or bituminous mixture, and any oil de9 rived from kerogen-bearing sources. 

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

11 market value’ means the average auction price for 

12 carbon permits during the 4 quarters immediately 

13 preceding a failure to surrender, when required 

14 under section 9904, the required number of carbon 

15 permits under such section. 

16 ‘‘(7) STATE.—The term ‘State’ means the sev17 eral States, the District of Columbia, the Common18 wealth of Puerto Rico, the United States Virgin Is19 lands, Guam, American Samoa, the Commonwealth 

20 of the Northern Mariana Islands, and any other 

21 commonwealth, territory, or possession of the United 

22 States. 

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

24 means the calendar year for which a carbon permit 

25 is established under section 9902. 


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1 ‘‘(9) CO-POLLUTANT.— The term ‘co-pollutant’ 

2 means— 

3 ‘‘(A) any criteria pollutant for which there 

4 are national ambient air quality standards 

5 under section 109 of the Clean Air Act (42 

6 U.S.C. 7409), and 

7 ‘‘(B) any precursor to such a criteria pol8 lutant which is released in fossil fuel combus9 tion. 

10 ‘‘(10) FRONTLINE COMMUNITIES.—The term 

11 ‘frontline communities’ means locations in which mi12 nority populations and low-income populations in the 

13 United States and its territories and possessions, the 

14 District of Columbia, the Commonwealth of Puerto 

15 Rico, and the Commonwealth of the Mariana Islands 

16 are exposed to disproportionately high and adverse 

17 human health or environmental effects of air pollu18 tion. 

19 ‘‘SEC. 9902. CARBON PERMITS. 

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

21 with the Administrator, shall establish a separate quantity 

22 of carbon permits for calendar year 2025 and each cal23 endar year thereafter, as set forth under subsection (b). 

24 ‘‘(b) EMISSIONS REDUCTION SCHEDULE.— 


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

2 permits established by the Secretary, in consultation 

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

4 calendar year before 2050 that is between the near5 est target years specified in paragraph (2) preceding 

6 and succeeding such calendar year shall be the quan7 tity of such permits that represents an equal, pro 

8 rata reduction from the preceding year to the suc9 ceeding year. 

10 ‘‘(2) TARGETS.— 

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

12 carbon permits established for 2025 shall be 

13 equal to 15 percent less than the number of 

14 metric tons of carbon dioxide emitted in the 

15 United States in 2015. 

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

17 of carbon permits established for— 

18 ‘‘(i) 2027 shall be equal to 35 percent 

19 less than the number of metric tons of car20 bon dioxide emitted in the United States in 

21 2015, 

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

23 less than the number of metric tons of car24 bon dioxide emitted in the United States in 

25 2015, 


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1 ‘‘(iii) 2038 shall be equal to 60 per2 cent less than the number of metric tons 

3 of carbon dioxide emitted in the United 

4 States in 2015, 

5 ‘‘(iv) 2044 shall be equal to 80 per6 cent less than the number of metric tons 

7 of carbon dioxide emitted in the United 

8 States in 2015, and 

9 ‘‘(v) 2050 shall be equal to 90 percent 

10 less than the number of metric tons of car11 bon dioxide emitted in the United States in 

12 2015. 

13 ‘‘(3) REPORTS.— 

14 ‘‘(A) CALENDAR YEAR 2050.—In 2050 the 

15 Secretary, after consultation with the Adminis16 trator, shall submit a report to Congress mak17 ing recommendations concerning the program 

18 established under this subtitle for years after 

19 2050, including the quantity of carbon permits 

20 to be established and any reductions that may 

21 be necessary to ensure a net zero carbon econ22 omy and a healthy climate. 

23 ‘‘(B) AVERTING CATASTROPHIC CLIMATIC

24 IMPACT.—Not later than 4 years after the date 

25 of the enactment of this section, and every 4 


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1 years thereafter, the Secretary shall report to 

2 Congress on any recommended revisions to the 

3 decadal targets under paragraph (2) and the 

4 basis for those recommendations if the Sec5 retary, after consultation with the Adminis6 trator, determines the emissions reductions tar7 gets under this subsection should be further 

8 tightened in order to— 

9 ‘‘(i) reach a net-zero carbon economy 

10 by 2050, or 

11 ‘‘(ii) avert catastrophic climate im12 pacts. 

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

14 shall assign to each carbon permit established under sub15 section (a) a unique identification number that includes 

16 the vintage year for that carbon permit. 

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

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

19 constitute a property right. 

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

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

22 construed to limit or alter the authority of the 

23 United States, including the Secretary acting pursu24 ant to statutory authority, to terminate or limit a 

25 carbon permit. 


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1 ‘‘(3) OTHER PROVISIONS UNAFFECTED.—Noth2 ing in this subtitle relating to carbon permits issued 

3 under this section shall affect the application of any 

4 other provision of law to a covered entity (including 

5 the Clean Air Act), or the responsibility for a cov6 ered entity to comply with any such provision of law. 

7 Regional and State greenhouse gas initiatives are 

8 not preempted by this subtitle. 

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

10 2025, the Secretary shall promulgate regulations to carry 

11 out the provisions of this subtitle. 

12 ‘‘SEC. 9903. AUCTIONS. 

13 ‘‘(a) PERIODIC AUCTIONS.—The Secretary shall con14 duct periodic public auctions of carbon permits established 

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

16 least 1 such auction in each calendar quarter of each year 

17 for which carbon permits are established, and shall dis18 tribute the available permits for each such year pro rata 

19 among the quarters of such year. 

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

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

22 entities, 

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

24 permits that can be purchased by a single entity at 

25 each auction and an aggregate limit on the total 


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1 amount of permits that can be held by a single enti2 ty at any one time that— 

3 ‘‘(A) reflects anticipated sector and partici4 pant demand, 

5 ‘‘(B) prevents speculation, manipulation, 

6 or hoarding of permits, and 

7 ‘‘(C) does not interfere with normal mar8 ket competition, and 

9 ‘‘(3) set a minimum permit price at the initial 

10 auction of $40 per ton of carbon dioxide that will be 

11 released when the covered fuel is burned, increase 

12 this minimum price by $10 in each successive year 

13 and adjust for inflation, and have the authority to 

14 set higher minimum permit prices. 

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

16 at the auction at which it is offered shall expire. 

17 ‘‘SEC. 9904. COMPLIANCE OBLIGATION. 

18 ‘‘(a) IN GENERAL.—Not later than April 1, 2025, 

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

20 shall surrender to the Secretary a quantity of carbon per21 mits at least as great as the number of metric tons of 

22 carbon dioxide that the Secretary, in consultation with the 

23 Administrator, determines would be emitted by the com24 bustion of covered fuels with respect to which the covered 


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1 entity made the first sale in United States markets during 

2 the previous calendar year. 

3 ‘‘(b) USE TREATED AS SALE.—For purposes of sub4 section (a), consumption for an emitting use by the cov5 ered entity of covered fuels produced by the covered entity 

6 shall be treated as a first sale. 

7 ‘‘SEC. 9905. PENALTY FOR NONCOMPLIANCE. 

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

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

10 9904, one or more of the carbon permits due pursuant 

11 to such section shall be required to surrender permits in 

12 order to meet this past due obligation and shall be liable 

13 for payment to the Secretary of a penalty in the amount 

14 described in subsection (b). 

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

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

17 obtained by multiplying— 

18 ‘‘(1) the number of carbon permits that the cov19 ered entity failed to surrender by the deadline, by 

20 ‘‘(2) 3 times the fair market value of carbon 

21 permits issued for emissions occurring in the cal22 endar year for which the carbon permits were due. 

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

24 shall be immediately due and payable to the Secretary, 

25 without demand, in accordance with regulations promulVerDate Sep 11 2014 23:10 Jan 14, 2025 Jkt 059200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S5495.IS S5495

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1 gated by the Secretary, which shall be issued not later 

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

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

4 payable by the covered entity under this section shall not 

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

6 penalty, or assessment against the covered entity for the 

7 same violation under any other provision of law. 

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

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

10 this section. 

11 ‘‘SEC. 9906. TRACKING. 

12 ‘‘The regulations promulgated under section 9902(e) 

13 shall include a system for issuing, recording, holding, and 

14 tracking carbon permits that shall specify all necessary 

15 procedures and requirements for an orderly and competi16 tive functioning of the carbon permit system. Such regula17 tions shall provide for appropriate publication of the infor18 mation in the system on the internet. 

19 ‘‘SEC. 9907. BANKING. 

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

21 meet the compliance obligation requirements of section 

22 9904 for emissions only in the permit’s vintage year, the 

23 year prior, or the year following. At least 80 percent of 

24 permits used by an entity to meet its compliance obligation 

25 for a year must be of that year’s vintage. The Secretary 


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1 shall have the authority to establish stricter requirements 

2 for the percentage of the compliance obligation for a year 

3 that must be met with permits of that year’s vintage, and 

4 to establish penalties for failure to comply. 

5 ‘‘(b) EXPIRATION.—A carbon permit shall expire 

6 when— 

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

8 section 9904, 

9 ‘‘(2) it has been held by a covered entity and 

10 has not been surrendered to the Secretary under sec11 tion 9904 within 18 months after the end of its vin12 tage year, or 

13 ‘‘(3) the Secretary determines by regulation 

14 that expiration is necessary to ensure the authen15 ticity and integrity of carbon permits or the carbon 

16 permit tracking system. 

17 ‘‘SEC. 9908. ENVIRONMENTAL JUSTICE. 

18 ‘‘(a) IN GENERAL.—This chapter shall be imple19 mented to the extent practicable to ensure that reductions 

20 in carbon emissions are accompanied by commensurate re21 ductions in emissions of co-pollutants from fossil fuel com22 bustion that impact frontline communities. 

23 ‘‘(b) REPORT ON AIR QUALITY METHODS DEVELOP24 MENT.—Not later than 1 year after the date of enactment 

25 of this section, the Administrator shall submit to Congress 


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1 a report detailing efforts to increase air quality monitoring 

2 deployment and technical assistance at the Federal, State, 

3 local, and tribal level. 

4 ‘‘(c) AIR QUALITY MONITORING IN FRONTLINE COM5 MUNITIES.—The Administrator (or the Administrator’s 

6 delegate) is authorized to provide for trends monitoring 

7 of ambient air quality in frontline communities and moni8 toring of co-pollutant emissions from sources located in 

9 or near such communities that impact their pollution bur10 den. Not later than 3 years after the date of the enactment 

11 of this section, any information from such monitors shall 

12 be recorded and reported at the level of monitor and pol13 lutant, and made available to the public to support effec14 tive community participation in the making of environ15 mental policies. 

16 ‘‘(d) ENVIRONMENTAL JUSTICE GUARANTEE.—In 

17 cases where co-pollutant emissions impacting frontline 

18 communities have not declined at a rate equal to the car19 bon dioxide emissions targets established in section 

20 9902(b)(2), the Administrator is authorized to implement 

21 or promulgate additional regulatory measures to ensure 

22 such reductions. 

23 ‘‘(e) ENVIRONMENTAL JUSTICE REVIEW.—Not later 

24 than 4 years after the date of enactment of this section, 

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1 ment an annual review to determine frontline commu2 nities, evaluate the effects of the enactment of this chapter 

3 on environmental justice, and recommend further correc4 tive measures if needed. 

5 ‘‘(f) APPROPRIATIONS.—Out of any money in the 

6 Treasury not otherwise appropriated, there shall be appro7 priated such sums as are necessary to carry out the pur8 poses of this section, to remain available until expended. 

9 ‘‘CHAPTER 102—HEALTHY CLIMATE 

10 DIVIDENDS 

‘‘Sec. 9911. Healthy Climate Trust Fund. 

‘‘Sec. 9912. Healthy Climate Dividend Payments. 

‘‘Sec. 9913. Transparency. 

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

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

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

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

15 amounts as may be appropriated to such trust fund as 

16 provided for in this section. 

17 ‘‘(b) TRANSFERS.— 

18 ‘‘(1) PROCEED AMOUNTS.—There are appro19 priated to the Healthy Climate Trust Fund amounts 

20 equivalent to funds received as proceeds under sec21 tion 9903. 

22 ‘‘(2) PENALTY AMOUNTS.—There are appro23 priated to the Healthy Climate Trust Fund amounts 


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1 equivalent to funds received as penalties under sec2 tion 9905. 

3 ‘‘(c) EXPENDITURES.— 

4 ‘‘(1) ADMINISTRATIVE EXPENSES.—Out of any 

5 amounts in the Treasury not otherwise appropriated, 

6 there shall be appropriated such sums as are nec7 essary to pay the administrative expenses necessary 

8 to carry out this chapter. 

9 ‘‘(2) HEALTHY CLIMATE DIVIDEND PAY10 MENTS.—Amounts in the Healthy Climate Trust 

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

12 shall be available for making Healthy Climate Divi13 dend Payments under section 9912. 

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

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

16 ‘‘(1) HEALTHY CLIMATE DIVIDEND PAY17 MENT.—The term ‘Healthy Climate Dividend Pay18 ment’ means the individual pro rata share, as deter19 mined by the Secretary, of amounts available for any 

20 quarter in the Healthy Climate Trust Fund under 

21 section 9911(c)(2). The amounts so available for any 

22 quarter shall be equal to the proceeds from auctions 

23 conducted under section 9903 in the preceding cal24 endar quarter. 

25 ‘‘(2) ELIGIBLE INDIVIDUAL.— 


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1 ‘‘(A) IN GENERAL.—The term ‘eligible in2 dividual’ means, with respect to any quarter, 

3 any individual with a valid social security num4 ber (other than a nonresident alien individual) 

5 who is lawfully present in the United States for 

6 such quarter, as determined and verified by the 

7 Secretary in consultation with any other Fed8 eral entity the Secretary determines appro9 priate. 

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

11 not to be treated as an eligible individual. 

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

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

14 the Secretary shall make a Healthy Climate Dividend Pay15 ment not later than the end of the calendar quarter fol16 lowing the calendar quarter in which such amounts are 

17 appropriated to the Healthy Climate Trust Fund under 

18 section 9911 to each eligible individual for that quarter. 

19 Such payments shall be made by electronic means to the 

20 maximum extent practicable. 

21 ‘‘(c) EXCLUSION FROM GROSS INCOME.—Gross in22 come shall not include any Healthy Climate Dividend paid 

23 under this section. 


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

2 such regulations and other guidance as may be necessary 

3 or appropriate to carry out this section. 

4 ‘‘SEC. 9913. TRANSPARENCY. 

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

6 30, 2026, and at least annually thereafter, the Secretary 

7 shall transmit to Congress a report accounting for the dis8 position of amounts in the Healthy Climate Trust Fund 

9 in the previous calendar year. 

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

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

12 of this subtitle, the Secretary shall establish and maintain 

13 a website to provide the public with information on the 

14 disposition of any amounts in the Healthy Climate Trust 

15 Fund. 

16 ‘‘CHAPTER 103—BORDER ADJUSTMENTS 

‘‘Sec. 9921. Carbon equivalency fee. 

‘‘Sec. 9922. Definitions. 

‘‘Sec. 9923. Sense of Congress. 

17 ‘‘SEC. 9921. CARBON EQUIVALENCY FEE. 

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

19 equivalency fees to be collected by the Commissioner re20 sponsible for U.S. Customs and Border Control on imports 

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

22 equivalency fee shall be equal to the cost that domestic 

23 producers of a comparable carbon-intensive good incur as 

24 a result of— 


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

2 permits by covered entities under this subtitle, and 

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

4 of carbon-intensive goods used in the production of 

5 the comparable carbon-intensive good. 

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

7 shall pay without interest to entities exporting from the 

8 United States carbon-intensive goods produced in the 

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

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

11 good incur as a result of— 

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

13 permits by covered entities under this subtitle, and 

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

15 of carbon-intensive goods used in the production of 

16 the comparable carbon-intensive good. 

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

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

19 ‘‘(1) an international agreement requiring coun20 tries that emit greenhouse gases and produce car21 bon-intensive goods for export markets to adopt 

22 equivalent measures comes into effect, or 

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

24 equivalent measures, as determined by the Sec25 retary, in consultation with the Secretary of State. 


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1 ‘‘SEC. 9922. DEFINITIONS. 

2 ‘‘In this chapter: 

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

4 ‘carbon-intensive good’ means a good that, as identi5 fied by the Secretary, in consultation with the Ad6 ministrator, by rule— 

7 ‘‘(A) is a primary product, or 

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

9 or more primary products are inputs and the 

10 cost of production of which in the United States 

11 is significantly increased by reason of the re12 quirements under this subtitle. 

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

14 product’ means— 

15 ‘‘(A) iron, steel, steel mill products (includ16 ing pipe and tube), aluminum, cement, glass 

17 (including flat, container, and specialty glass 

18 and fiberglass), pulp, paper, chemicals, or in19 dustrial ceramics, and 

20 ‘‘(B) any other manufactured product that 

21 the Secretary, in consultation with the Adminis22 trator, determines— 

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

24 manufacture, and 

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

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1 direct greenhouse gas emissions that are 

2 comparable (on an emissions-per-dollar of 

3 output basis) to emissions generated in the 

4 manufacture or production of a primary 

5 product identified in subparagraph (A). 

6 ‘‘(3) EQUIVALENT MEASURE.—The term ‘equiv7 alent measure’ means a tax, or other regulatory re8 quirement that imposes a cost, on manufacturers of 

9 carbon-intensive goods located outside the United 

10 States, by reason of greenhouse gas emissions in the 

11 production of such goods by such manufacturers, ap12 proximately equal to the cost imposed by this sub13 title on manufacturers of comparable carbon-inten14 sive goods located in the United States. 

15 ‘‘SEC. 9923. SENSE OF CONGRESS. 

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

17 should work proactively under the United Nations Frame18 work Convention on Climate Change and in other appro19 priate fora, to establish binding agreements committing all 

20 major greenhouse gas emitting countries and countries 

21 with globally competitive producers of carbon-intensive 

22 goods to contribute equitably to the reduction of global 

23 greenhouse gas emissions on a schedule and order of mag24 nitude necessary to stabilize the climate.’’. 


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

2 for the Internal Revenue Code of 1986 is amended by add3 ing at the end the following new item: 

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

Dividends.’’. 

4 SEC. 4. NON-AUCTION GREENHOUSE GASES. 

5 (a) DEFINITIONS.—In this section: 

6 (1) The term ‘‘Administrator’’ means the Ad7 ministrator of the Environmental Protection Agency. 

8 (2) The term ‘‘non-auction greenhouse gas’’ re9 fers to the gases included on the list in effect under 

10 subsection (b). 

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

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

13 the date of the enactment of this Act, the Adminis14 trator, by rule, shall finalize and publish a list 

15 that— 

16 (A) consists of the anthropogenically emit17 ted gases that are determined by the Adminis18 trator to contribute to global warming; and 

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

20 (i) carbon dioxide emitted by the com21 bustion of a covered fuel (as such term is 

22 defined in section 9901 of the Internal 

23 Revenue Code of 1986, as added by section 

24 3(a) of this Act); or 


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1 (ii) directly attributable to the produc2 tion of animals for food or food products. 

3 (2) UPDATES.—The Administrator shall peri4 odically review and, as appropriate, update the list 

5 under paragraph (1). 

6 (c) REGULATIONS.— 

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

8 in the Administrator by the Clean Air Act (42 

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

10 (other than this section), the Administrator shall 

11 promulgate regulations addressing the contribution 

12 of non-auction greenhouse gases to global warming. 

13 (2) INTERNATIONAL COMPETITIVENESS.—In 

14 promulgating regulations under this subsection, the 

15 Administrator shall take into consideration the effect 

16 of such regulations on the international competitive17 ness of businesses and industries of the United 

18 States. 

19 (d) SCHEDULE.— 

20 (1) IN GENERAL.—The regulations under sub21 section (c) shall ensure that— 

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

23 of enactment of this Act, requirements take ef24 fect to regulate sources which, collectively, emit 


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1 not less than 25 percent of non-auction green2 house gases emitted in the United States; 

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

4 of enactment of this Act, requirements take ef5 fect to regulate sources which, collectively, emit 

6 not less than 50 percent of non-auction green7 house gases emitted in the United States; 

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

9 of enactment of this Act, requirements take ef10 fect to regulate sources which, collectively, emit 

11 not less than 75 percent of non-auction green12 house gases emitted in the United States; and 

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

14 of enactment of this Act, requirements take ef15 fect to regulate sources which, collectively, emit 

16 100 percent of non-auction greenhouse gases 

17 emitted in the United States. 

18 (2) BASELINE.—The percentages specified in 

19 paragraph (1) shall be applied relative to the aggre20 gate quantity of non-auction greenhouse gases emit21 ted in the United States during the calendar year in 

22 which the initial list under subsection (b)(1) is re23 quired to be finalized by such subsection. 


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1 (e) PRIORITIES.—In determining priorities for regu2 lating the emissions of non-auction greenhouse gases 

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

4 (1) the degree to which the gases involved con5 tribute to global warming; and 

6 (2) the speed with which a given reduction 

7 would contribute to stabilizing the climate. 

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

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

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

11 or the failure of the Administrator to perform a non-dis12 cretionary act or duty under this section, to the same ex13 tent and in the same manner as such provisions apply with 

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

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

16 or duty described in such subsection. 

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

18 after the date of the enactment of this Act, the Adminis19 trator shall submit a report to the Congress identifying 

20 any additions or modifications to statutory provisions 

21 which are needed for the Administrator to effectively ad22 dress the contribution of non-auction greenhouse gases to 

23 global warming. 


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1 SEC. 5. DISCLOSURE OF INFORMATION. 

2 (a) LIMITED DISCLOSURE OF IDENTITY.—Subsection 

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

4 is amended by adding at the end the following new para5 graph: 

6 ‘‘(23) LIMITED DISCLOSURE OF IDENTITY IN7 FORMATION RELATING TO HEALTHY CLIMATE DIVI8 DEND PAYMENTS.— 

9 ‘‘(A) DEPARTMENT OF THE TREASURY.— 

10 Information regarding taxpayer identity with 

11 respect to individuals shall, without written re12 quest, be open to inspection by or disclosure to 

13 officers and employees of the Department of the 

14 Treasury whose official duties require such in15 spection or disclosure for purposes of section 

16 9912. 

17 ‘‘(B) COMMISSIONER OF SOCIAL SECU18 RITY.—The Commissioner of Social Security 

19 shall, on written request, disclose to officers 

20 and employees of the Department of the Treas21 ury information regarding taxpayer identity 

22 which has been disclosed to the Social Security 

23 Administration as provided by paragraph (1) or 

24 (5). 

25 ‘‘(C) RESTRICTION ON DISCLOSURE.—In26 formation disclosed under this paragraph shall 


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1 be disclosed only for purposes of, and to the ex2 tent necessary in, carrying out section 9912.’’. 

3 (b) CONFORMING AMENDMENTS.—Section 

4 6103(p)(3)(A) of the Internal Revenue Code of 1986 is 

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

6 (23)’’. 

7 SEC. 6. PRESERVATION OF REMEDIES. 

8 (a) IN GENERAL.—Nothing in this Act preempts, dis9 places, or restricts any State or Federal common law or 

10 statutory rights that create a remedy for civil relief, in11 cluding those for civil damages, or that create a penalty 

12 for criminal conduct. 

13 (b) CLAIMS RELATED TO FOSSIL FUELS AND CLI14 MATE CHANGE.—Notwithstanding any other provision of 

15 law, nothing in this Act, the Clean Air Act (42 U.S.C. 

16 7401 et seq.), or Federal common law preempts, displaces, 

17 or restricts any right or remedy of any person, State, city, 

18 county, or local or Tribal government under State or local 

19 statute, ordinance, or common law related to any allega20 tion of— 

21 (1) deception concerning the effects of fossil 

22 fuels on climate change; 

23 (2) damage or injury resulting from the role of 

24 fossil fuels in contributing to climate change; or 


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1 (3) the failure to avoid any damage or injury 

2 related to— 

3 (A) climate change, including claims for 

4 nuisance, trespass, design defect, negligence, 

5 failure to warn, or deceptive or unfair practices; 

6 and 

7 (B) claims for injunctive, declaratory, mon8 etary, or other relief. 

9 SEC. 7. EFFECTIVE DATE. 

10 The amendments made by this Act shall take effect 

11 on the date of the enactment of this Act. 

Æ 


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