II 

118TH CONGRESS 

1ST SESSION S. 3198 

To amend the Internal Revenue Code of 1986 to impose a fee on certain 

products imported into the United States based on the pollution intensity 

associated with the production of such products, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 2, 2023 

Mr. CASSIDY (for himself and Mr. GRAHAM) introduced the following bill; 

which was read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to impose 

a fee on certain products imported into the United States 

based on the pollution intensity associated with the production of such products, 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 ‘‘Foreign Pollution Fee 

5 Act of 2023’’. 

6 SEC. 2. SENSE OF CONGRESS; PURPOSE. 

7 (a) SENSE OF CONGRESS.—It is the sense of Con8 gress that— 


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1 (1) it is in the interests of the United States to 

2 strive for environmental protection in order to pro3 tect human health; 

4 (2) the nature of environmental challenges are 

5 transnational in nature, but international coopera6 tive efforts, including those led by the United States, 

7 have not resulted in many trading partners adopting 

8 measures to address those challenges; 

9 (3) the transnational issues related to environ10 mental protection and pollution impact the environ11 ment and public health in the United States and in 

12 turn present national security risks because of the 

13 environmental and public health risks; 

14 (4) the United States— 

15 (A) has adopted many environmental pro16 tections, including the Clean Air Act (42 U.S.C. 

17 7401 et seq.), the Federal Water Pollution Con18 trol Act (33 U.S.C. 1251 et seq.), the Toxic 

19 Substances Control Act (15 U.S.C. 2601 et 

20 seq.), and more than 15 other major environ21 mental protection laws that— 

22 (i) add costs to the production of 

23 goods in order to secure the benefits of en24 vironmental protection and conservation ef25 forts; and 


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1 (ii) serve to meaningfully decrease 

2 greenhouse gasses such as carbon dioxide 

3 (CO2), methane (CH4), nitrous oxide 

4 (N2O), sulfur hexafluoride (SF6), 

5 hydrofluorocarbons (HFCs), 

6 perfluorocarbons (PFCs), and other 

7 fluorinated greenhouse gases; 

8 (B) is the world’s largest consumer market 

9 and its economy is highly integrated into the 

10 world; and 

11 (C) bears responsibility to ensure that the 

12 United States market does not incentivize 

13 forum shopping for the production of goods to 

14 jurisdictions with low environmental standards 

15 to obtain a competitive cost advantage while un16 dermining efforts to address transnational envi17 ronmental and resource challenges as well as 

18 global public health; 

19 (5) it is necessary to apply measures to ensure 

20 the environmental conservation efforts of the United 

21 States are not frustrated through such forum shop22 ping; and 

23 (6) the development needs of low-income and 

24 lower-middle-income countries must be reasonably 


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1 taken into consideration while strengthening envi2 ronmental protection. 

3 (b) PURPOSE.—It is the purpose of this Act to raise 

4 global environmental performance to ensure a healthy en5 vironment and secure global public health benefits. 

6 SEC. 3. RULES OF CONSTRUCTION. 

7 (a) DOMESTIC PRODUCTION.—Nothing in this Act, 

8 or any amendments made by this Act, shall be construed 

9 to authorize the creation of any carbon tax, fee, pricing, 

10 or other mechanism that imposes additional costs to any 

11 covered product (as defined in section 4695(a) of the In12 ternal Revenue Code of 1986, as added by this Act) which 

13 is produced domestically and sold, used, further refined, 

14 or distributed within United States or exported to another 

15 country for sale or use. 

16 (b) APPLICATION TO OTHER LAWS.—Nothing in this 

17 Act, or any amendments made by this Act, shall be con18 strued to authorize new environmental standards of per19 formance or impact calculations of compliance to stand20 ards under the Clean Air Act (42 U.S.C. 7401 et seq.) 

21 or any other Act which examines the environmental impact 

22 of domestic production or proposed production. 

23 (c) DATA COLLECTION.—Except as expressly author24 ized under this Act, nothing in this Act, or any amend25 ments made by this Act, shall be construed to authorize 


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1 additional authority for any agency to collect additional 

2 pollution data from a domestic producer. 

3 TITLE I—FOREIGN POLLUTION 

4 FEE 

5 SEC. 101. FOREIGN POLLUTION FEE. 

6 (a) IN GENERAL.—Chapter 38 of the Internal Rev7 enue Code of 1986 is amended by adding at the end the 

8 following new subchapter: 

9 ‘‘Subchapter E—Foreign Pollution Fee 

‘‘Sec. 4691. Imposition of foreign pollution fee. 

‘‘Sec. 4692. Determination of variable charge. 

‘‘Sec. 4693. Calculation of pollution intensity. 

‘‘Sec. 4694. Treatment of international partnerships. 

‘‘Sec. 4695. Covered products. 

‘‘Sec. 4696. National Laboratory Advisory Board on Global Pollution Challenges. 

‘‘Sec. 4697. Definitions. 

‘‘Sec. 4698. Establishment process and reassessments. 

10 ‘‘SEC. 4691. IMPOSITION OF FOREIGN POLLUTION FEE. 

11 ‘‘(a) IN GENERAL.— 

12 ‘‘(1) IMPOSITION OF FEE.—In the case of any 

13 covered product which is imported by a covered enti14 ty into the United States after the applicable date, 

15 there is hereby imposed a fee upon entry or importa16 tion of such covered product in an amount equal to 

17 the product of— 

18 ‘‘(A) the amount of such covered product 

19 which is imported into the United States, and 

20 ‘‘(B) the variable charge (as determined 

21 under section 4692). 


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1 ‘‘(2) APPLICABLE DATE.— 

2 ‘‘(A) IN GENERAL.—For purposes of para3 graph (1), the applicable date shall be the date 

4 which is 36 months after the date of enactment 

5 of this subchapter. 

6 ‘‘(B) POSTPONEMENT.—With respect to 

7 any covered product produced in a low-income 

8 country or lower-middle-income country, the 

9 Secretary may extend the applicable date under 

10 such clause for a period of not greater than 12 

11 months if the United States Trade Representa12 tive issues a certification to the appropriate 

13 congressional committees that such country is 

14 making progress towards an international part15 nership agreement. 

16 ‘‘(b) FEE DUE.— 

17 ‘‘(1) IN GENERAL.—The fee imposed under this 

18 section with respect to any covered product shall be 

19 paid by the covered entity which imported such 

20 product at the same time, and through the same 

21 electronic portal, that any payment of custom duties 

22 are made. 

23 ‘‘(2) SECURITY FOR FEES.—The Secretary may 

24 issue such regulations or other guidance to require, 

25 or may direct officers of U.S. Customs and Border 


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1 Protection to require, a covered entity to file with 

2 the Secretary a bond or other security in such 

3 amount and with such conditions as the Secretary 

4 determines necessary to ensure payment of the fees 

5 imposed under this section. 

6 ‘‘(c) MEASUREMENT OF IMPORTED PRODUCTS.—The 

7 amount of any covered product which is imported into the 

8 United States shall be determined by the measure ordi9 narily used in the course of trade of such covered product 

10 (as determined pursuant to the 6-digit HTS subheading 

11 number with respect to such product). 

12 ‘‘(d) AMOUNTS AND FEES.—The Commissioner of 

13 U.S. Customs and Border Protection shall allow payment 

14 of the fee imposed under this section for such product to 

15 be paid by the covered entity in the same manner in which 

16 payment of custom duties are made. 

17 ‘‘SEC. 4692. DETERMINATION OF VARIABLE CHARGE. 

18 ‘‘(a) IN GENERAL.—The variable charge is an ad va19 lorem fee which is specific to a covered product and deter20 mined pursuant to the tier to which such covered product 

21 is assigned. 

22 ‘‘(b) TIERS.— 

23 ‘‘(1) IN GENERAL.—Tiers for covered products 

24 shall be established as follows: 


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1 ‘‘(A) For covered products for which the 

2 pollution intensity difference is greater than 10 

3 percent and not greater than 50 percent, tiers 

4 shall be established at each 5-percentage-point 

5 increment. 

6 ‘‘(B) For covered products for which the 

7 pollution intensity difference is greater than 50 

8 percent and not greater than 200 percent, tiers 

9 shall be established at each 10-percentage-point 

10 increment. 

11 ‘‘(C) For covered products for which the 

12 pollution intensity difference is greater than 

13 200 percent, tiers shall be established at each 

14 20-percentage-point increment. 

15 ‘‘(2) APPLICATION OF TIERS.— 

16 ‘‘(A) IN GENERAL.—The purposes of the 

17 tiers under this section are as follows: 

18 ‘‘(i) To provide for a standardized or19 ganization model for each covered product 

20 to allow for proper implementation and ap21 plication of the fee imposed under section 

22 4691, with such tiers to be based on the 

23 different pollution intensities for a given 

24 covered product based on the country of 

25 origin of such covered product (or, subject 


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1 to section 204 of the Foreign Pollution Fee 

2 Act of 2023, the manufacturer of such cov3 ered product). 

4 ‘‘(ii) To allow for determinations of 

5 the variable charge under this section in 

6 relation to the tiers in a manner which is 

7 specific to the covered product. 

8 ‘‘(B) USE OF TIERS IN DETERMINING

9 VARIABLE CHARGE.— 

10 ‘‘(i) IN GENERAL.—In accordance 

11 with paragraph (1), tiers shall be estab12 lished for each covered product, with the 

13 variable charge assigned to each tier in a 

14 manner which is consistent with achieving 

15 the goals described in subsection (c)(2) 

16 with respect to such covered product. 

17 ‘‘(ii) PROHIBITION.—The variable 

18 charge assigned to a particular tier for a 

19 covered product shall not be used to deter20 mine the variable charge assigned to the 

21 same tier for a different covered product. 

22 ‘‘(3) ASSIGNMENT.—Each covered product shall 

23 be assigned to the applicable tier which corresponds 

24 to the pollution intensity difference with respect to 

25 such covered product. 


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1 ‘‘(c) VARIABLE CHARGE.— 

2 ‘‘(1) IN GENERAL.—The variable charge as3 signed to each tier for a covered product shall be 

4 specific to the achievement of the goals in paragraph 

5 (2). 

6 ‘‘(2) GOALS.— 

7 ‘‘(A) PHASE ONE GOALS.—During the 6- 

8 year period beginning after the applicable date 

9 described in section 4691(a)(2) (or, in the case 

10 of any covered product added pursuant to sub11 section (d) or (e) of section 4695, the 6-year 

12 period subsequent to the date described in sub13 section (f) of such section), the goal utilized for 

14 establishment of the variable charge with re15 spect to any covered product shall be— 

16 ‘‘(i) in the case of any covered product 

17 for which the average pollution intensity 

18 difference is greater than 50 percent, to 

19 alter trade flows such that the average pol20 lution intensity difference associated with 

21 such covered product is not greater than 

22 50 percent, 

23 ‘‘(ii) in the case of any covered prod24 uct for which the average pollution inten25 sity difference is greater than 25 percent 


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1 and not greater than 50 percent, to alter 

2 trade flows such that the average pollution 

3 intensity difference associated with such 

4 covered product is not greater than 25 per5 cent, and 

6 ‘‘(iii) in the case of any covered prod7 uct for which the average pollution inten8 sity difference is not greater than 25 per9 cent, to alter trade flows such that the av10 erage pollution intensity difference associ11 ated with such covered product is not 

12 greater than 10 percent. 

13 ‘‘(B) PHASE TWO GOALS.—During the 6- 

14 year period subsequent to the initial 6-year pe15 riod described in subparagraph (A), the goal for 

16 establishment of the variable charge with re17 spect to any covered product shall be— 

18 ‘‘(i) in the case of any covered product 

19 which, for the initial 6-year period de20 scribed in such subparagraph, was de21 scribed in clause (i) of such subparagraph, 

22 to alter trade flows such that the average 

23 pollution intensity difference associated 

24 with such covered product is not greater 

25 than 25 percent, 


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1 ‘‘(ii) in the case of any covered prod2 uct which, for the initial 6-year period de3 scribed in such subparagraph, was de4 scribed in clause (ii) of such subparagraph, 

5 to alter trade flows such that the average 

6 pollution intensity difference associated 

7 with such covered product is not greater 

8 than 10 percent, and 

9 ‘‘(iii) in the case of any covered prod10 uct which, for the initial 6-year period de11 scribed in such subparagraph, was de12 scribed in clause (iii) of such subpara13 graph, to maintain achievement of the goal 

14 described in such clause. 

15 ‘‘(C) PHASE THREE GOALS.—For any year 

16 subsequent to the period described in subpara17 graph (B), the goal for establishment of the 

18 variable charge with respect to any covered 

19 product shall be to alter trade flows such that 

20 the average pollution intensity difference associ21 ated with such covered product is not greater 

22 than 10 percent. 

23 ‘‘(3) PROGRESSION OF VARIABLE CHARGE.— 

24 ‘‘(A) IN GENERAL.—To the maximum ex25 tent practicable, the variable charges assigned 


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1 to each tier of a covered product to achieve the 

2 goals described in paragraph (2) shall progress 

3 through each tier in a manner consistent with 

4 an increasing linear interpolation of the variable 

5 charge. 

6 ‘‘(B) EXCEPTION.—With respect to any 

7 tier for a covered product and the variable 

8 charge assigned to such tier, the Board may 

9 recommend and the Secretary may finalize a 

10 variable charge that deviates from a linear in11 terpolation of the variable charge as described 

12 in subparagraph (A), provided that such alter13 ation allows for a higher likelihood that the 

14 goals described in paragraph (2) will be at15 tained. 

16 ‘‘(4) MINIMIZATION OF DOMESTIC COST IN17 CREASES.—For purposes of this subsection, any 

18 variable charge shall be established in a manner 

19 which ensures that the goals described under para20 graph (2) are attained while minimizing any poten21 tial increase in domestic costs. 

22 ‘‘(d) EXCEPTIONS.— 

23 ‘‘(1) COMPARABLE TO BASELINE POLLUTION

24 INTENSITY.—In the case of any covered product for 


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1 which the pollution intensity difference is not greater 

2 than 10 percent, the variable charge shall be zero. 

3 ‘‘(2) INSUFFICIENT DOMESTIC PRODUCTION.— 

4 ‘‘(A) IN GENERAL.—In the case of any 

5 covered product for which the Secretary deter6 mines there is not sufficient domestic produc7 tion with respect to such product, the variable 

8 charge shall be zero. 

9 ‘‘(B) DEFINITION.— 

10 ‘‘(i) IN GENERAL.—For purposes of 

11 this paragraph, the term ‘sufficient domes12 tic production’ means any covered product 

13 for which an equivalent product which is 

14 produced by domestic producers within the 

15 United States constitutes greater than the 

16 applicable percentage of domestic con17 sumption of such product. 

18 ‘‘(ii) APPLICABLE PERCENTAGE.— 

19 ‘‘(I) IN GENERAL.—For purposes 

20 of clause (i), the applicable percentage 

21 shall be equal to— 

22 ‘‘(aa) 5 percent, or 

23 ‘‘(bb) in the case of any cov24 ered product described in sub25 clause (II), such percentage 


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1 below 5 percent as is determined 

2 appropriate by the Secretary. 

3 ‘‘(II) SPECIFIED PRODUCT.—A 

4 covered product described in this sub5 clause is a product— 

6 ‘‘(aa) which the Secretary, 

7 in consultation with the United 

8 States Trade Representative, has 

9 determined requires an applicable 

10 percentage below 5 percent for 

11 purposes of supporting— 

12 ‘‘(AA) national security, 

13 ‘‘(BB) prevention of 

14 dumping from foreign coun15 tries, or 

16 ‘‘(CC) development of a 

17 domestic industry, or 

18 ‘‘(bb) for which, as a result 

19 of an international partnership 

20 agreement, a country which is a 

21 party to such agreement pro22 duces not less than 5 percent of 

23 United States domestic consump24 tion of such covered product. 


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1 ‘‘(C) ADJUSTMENT.—In the case of any 

2 covered product for which no variable charge is 

3 imposed under this section pursuant to a deter4 mination under subparagraph (A), the Sec5 retary shall— 

6 ‘‘(i) review such determination not 

7 less than annually, and 

8 ‘‘(ii) if the Secretary’s review deter9 mines that sufficient domestic production 

10 has been attained with respect to such 

11 product, terminate application of subpara12 graph (A) for such product. 

13 ‘‘(D) EXCEPTION.—This paragraph shall 

14 not apply with respect to any product which is 

15 included as a covered product pursuant to sec16 tion 4695(d). 

17 ‘‘(3) NATIONAL SECURITY.— 

18 ‘‘(A) PRODUCT WAIVER.— 

19 ‘‘(i) IN GENERAL.—The Secretary, in 

20 coordination with the Secretary of Defense 

21 and the Commissioner of U.S. Customs 

22 and Border Protection, may reduce the 

23 variable charge to zero for any covered 

24 product if the Secretary determines that 


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1 such product is imported for purposes of 

2 fulfilling a contract with— 

3 ‘‘(I) the Department of Defense, 

4 or 

5 ‘‘(II) any contractor of the De6 partment of Defense. 

7 ‘‘(ii) FORM.— 

8 ‘‘(I) IN GENERAL.—Any reduc9 tion under this subparagraph shall 

10 only apply to a covered product— 

11 ‘‘(aa) for the period that the 

12 contract described in clause (i) is 

13 in effect, and 

14 ‘‘(bb) with respect to the 

15 quantity of such covered product 

16 which is required to fulfill the 

17 contract described in such clause. 

18 ‘‘(iii) PUBLICATION.—The Secretary 

19 shall make public any reduction under this 

20 subparagraph with respect to a covered 

21 product unless the publication of such in22 formation would negatively affect national 

23 security. 

24 ‘‘(B) INTERNATIONAL PARTNERSHIP

25 AGREEMENTS.—In the case of— 


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1 ‘‘(i) any upper-middle-income country, 

2 or 

3 ‘‘(ii) any country which has entered 

4 into a mutual defense treaty or security 

5 partnership with the United States, 

6 the United States Trade Representative (in con7 sultation with the Secretary of Defense and the 

8 Secretary of State) may permit such country to 

9 be subject to the requirements applicable to a 

10 low-income country or a lower-middle-income 

11 country under section 203 of the Foreign Pollu12 tion Fee Act of 2023 if completion of an inter13 national partnership agreement with such coun14 try is determined to assist in the national secu15 rity or geopolitical positioning of the United 

16 States. 

17 ‘‘(4) FREE TRADE AGREEMENT.—In the case of 

18 any covered product— 

19 ‘‘(A) which is produced in a country with 

20 which the United States has a free trade agree21 ment, 

22 ‘‘(B) for which all of the transforming 

23 parts or components parts necessary to produce 

24 such covered product are produced within— 


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1 ‘‘(i) any country with which the 

2 United States has a free trade agreement, 

3 or 

4 ‘‘(ii) the United States, and 

5 ‘‘(C) for which the pollution intensity dif6 ference is not greater than 50 percent, 

7 the variable charge shall be zero. 

8 ‘‘(e) LIMITATION.—Subsection (d) shall not apply to 

9 any covered product which is produced in a country which 

10 is classified as a nonmarket economy country unless such 

11 country— 

12 ‘‘(1) is a low-income country or a lower-middle13 income country, and 

14 ‘‘(2) is a party to an international partnership 

15 agreement. 

16 ‘‘(f) CIRCUMVENTION.— 

17 ‘‘(1) IN GENERAL.—If the Secretary (in con18 sultation with the United States Trade Representa19 tive, the appropriate congressional committees, and 

20 any relevant Federal agency) determines that any 

21 country is attempting to circumvent application of 

22 the fee imposed under section 4691, the Secretary 

23 shall adjust the variable charge in such manner is as 

24 deemed necessary to offset such circumvention. 


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1 ‘‘(2) INCLUSION.—For purposes of this sub2 section, circumvention of the fee imposed under sec3 tion 4691 shall include— 

4 ‘‘(A) artificially decreasing the price for 

5 which a covered product is sold, and 

6 ‘‘(B) subsidization to producers within the 

7 country of origin to offset such fee. 

8 ‘‘(3) DETERMINATION.—If the Secretary deter9 mines that a country is attempting to circumvent 

10 application of the fee imposed under section 4691, 

11 the Secretary shall publish in the Federal Register— 

12 ‘‘(A) a justification for such determination, 

13 ‘‘(B) the adjusted variable charge applica14 ble to any covered product produced in such 

15 country, and 

16 ‘‘(C) the date (not later than 6 months 

17 after the date of publication) on which the ad18 justed variable charge will begin application. 

19 ‘‘SEC. 4693. CALCULATION OF POLLUTION INTENSITY. 

20 ‘‘(a) IN GENERAL.—For purposes of determining the 

21 applicable tiers for covered products under section 

22 4692(b), the Secretary and the Board shall develop con23 sistent methods for calculating the pollution intensity of 

24 any covered product which are specific to the country of 

25 origin. 


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1 ‘‘(b) FORM.— 

2 ‘‘(1) IN GENERAL.—With respect to any cov3 ered product, the pollution intensity of such product 

4 shall be expressed based on the average pollution in5 tensity associated with the manufacturing of such 

6 product (including point source pollution and up7 stream pollution) in the country of origin. 

8 ‘‘(2) SPECIFICITY.— 

9 ‘‘(A) IN GENERAL.—To the maximum ex10 tent practicable, the pollution intensity of a cov11 ered product shall be specific to the applicable 

12 6-digit HTS subheading number. 

13 ‘‘(B) CRUDE OIL.—In the case of a cov14 ered product described in section 4695(a)(4), 

15 the pollution intensity of the covered product 

16 shall be specific to the applicable 8-digit HTS 

17 subheading number. 

18 ‘‘(3) EXCEPTION.—In the case of a covered 

19 product (with the exception of a covered product de20 scribed in section 4695(a)(4)) for which data is not 

21 available to determine pollution intensity in a man22 ner specific to the 6-digit HTS subheading number, 

23 the Secretary and the Board may determine the pol24 lution intensity based on the applicable 4-digit HTS 

25 heading. 


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1 ‘‘(c) DATA.— 

2 ‘‘(1) IN GENERAL.—To the extent necessary for 

3 any determination with respect to any covered prod4 uct, the Secretary and the Board may use— 

5 ‘‘(A) economic, statistical, and engineering 

6 models and analysis, 

7 ‘‘(B) pollution monitoring data from facili8 ties, satellites, and other pollution monitoring 

9 tools, provided that such data— 

10 ‘‘(i) is publicly available, or 

11 ‘‘(ii) is not publicly available but is 

12 able to be accessed and verified on a con13 sistent basis by the Secretary or the head 

14 of any relevant Federal agency, 

15 ‘‘(C) voluntarily reported data, provided 

16 that such data is— 

17 ‘‘(i) a product of monitored emissions, 

18 and 

19 ‘‘(ii) able to be verified by the Sec20 retary or the Board, 

21 ‘‘(D) the best available information on 

22 technology performance levels for the industrial 

23 sector that produces such product, and 

24 ‘‘(E) manufacturing and pollution data 

25 which is specific to a covered product, including 


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1 relevant data with respect to the point source 

2 pollution and upstream pollution, the industrial 

3 sector which is associated with such product, 

4 and the country of origin. 

5 ‘‘(2) DATA PREFERENCE.— 

6 ‘‘(A) IN GENERAL.—To the greatest extent 

7 possible, in determining baseline pollution in8 tensity, the Secretary and the Board shall give 

9 preference to data collected through regulatory 

10 reporting methods by the Environmental Pro11 tection Agency. 

12 ‘‘(B) DATA COLLECTION.—To the extent 

13 necessary to carry out the purposes of this sub14 chapter, the Administrator may alter the 

15 Greenhouse Gas Reporting Program (as estab16 lished under part 98 of title 40, Code of Fed17 eral Regulations) to include the reporting of 

18 production from stationary sources regarding— 

19 ‘‘(i) the quantity of any product pro20 duced, and 

21 ‘‘(ii) the heading, subheading, and 

22 statistical reporting number of the HTS 

23 under which the product would be classi24 fied if the product were imported. 

25 ‘‘(3) ACCESS TO INFORMATION.— 


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1 ‘‘(A) IN GENERAL.—The head of every rel2 evant Federal agency shall provide the Sec3 retary and the Board with any information held 

4 by or otherwise available to the head of such 

5 Federal agency which is relevant to the calcula6 tion of pollution intensity. 

7 ‘‘(B) CONFIDENTIALITY.—With respect to 

8 any information or data relating to operational 

9 practices or manufacturing processes of any 

10 producer of a covered product which is provided 

11 to the Secretary and the Board pursuant to 

12 subparagraph (A), unless such information or 

13 data is otherwise publicly available, the head of 

14 any relevant Federal agency shall take such 

15 measures as are necessary to ensure that such 

16 information and data is aggregated and 

17 anonymized. 

18 ‘‘(d) METHODOLOGY.— 

19 ‘‘(1) IN GENERAL.—For purposes of creating a 

20 process for calculating the pollution intensity of any 

21 covered product under subsection (a), the Secretary 

22 and the Board shall— 

23 ‘‘(A) use the best, and most granular, data 

24 available in the United States to establish the 


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1 baseline pollution intensity with respect to such 

2 product, and 

3 ‘‘(B) in the case of a covered product pro4 duced outside of the United States, base the 

5 calculation of the pollution intensity of such 

6 product on the process used to establish the 

7 baseline pollution intensity for such product. 

8 ‘‘(2) TREATMENT OF DIFFERENT MANUFAC9 TURING METHODS AND LOCATIONS.—For purposes 

10 of calculating the baseline pollution intensity of a 

11 covered product, such calculations shall seek to ac12 count for differences in pollution intensity due to— 

13 ‘‘(A) varied manufacturing methods, 

14 ‘‘(B) differences in geographic location as15 sociated with upstream pollution intensity, and 

16 ‘‘(C) the proportion of manufacturing of 

17 such product which is associated with the meth18 ods and differences described in subparagraphs 

19 (A) and (B) relative to total domestic produc20 tion of such product. 

21 ‘‘(3) TREATMENT OF RECYCLED MATERIALS.— 

22 Any recycled material (as defined in section 

23 246.101(w) of title 40, Code of Federal Regulations) 

24 shall be deemed to have a pollution intensity of zero 


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1 if recycled (as defined in section 246.101(x) of such 

2 title) into— 

3 ‘‘(A) a contributing part, 

4 ‘‘(B) a component part, or 

5 ‘‘(C) a covered product. 

6 ‘‘(4) TREATMENT OF CARBON OXIDES.— 

7 ‘‘(A) IN GENERAL.—Any carbon oxide cap8 tured from manufacturing processes or from 

9 ambient air by the producer of a covered prod10 uct, or verifiably purchased by the producer of 

11 a covered product as an offset from an entity 

12 operating carbon capture infrastructure, shall 

13 have the effect of reducing the pollution associ14 ated with the production of a covered product 

15 if such carbon oxide is— 

16 ‘‘(i) utilized in the creation of a con17 tributing part, component part, trans18 forming part, or covered product, 

19 ‘‘(ii) utilized to help access a contrib20 uting part, component part, transforming 

21 part, or covered product that is extracted 

22 from a geologic formation, or 

23 ‘‘(iii) verifiably sequestered in the 

24 country of origin of such product in a 

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1 counting of the storage of such carbon 

2 oxide. 

3 ‘‘(B) ACCOUNTING.—Any carbon oxide uti4 lized or sequestered as described in subpara5 graph (A) shall be— 

6 ‘‘(i) treated as a reduction in pollution 

7 associated with the production of a covered 

8 product based on the total tons of carbon 

9 oxide utilized or sequestered, and 

10 ‘‘(ii) eligible to offset all forms of pol11 lution based on the relevant carbon dioxide 

12 equivalent value. 

13 ‘‘(5) TREATMENT OF COVERED PRODUCTS

14 WITH MULTIPLE PARTS.— 

15 ‘‘(A) IN GENERAL.—In the case of a cov16 ered product described in subparagraph (B) 

17 which contains any covered component part or 

18 covered transforming part, to the maximum ex19 tent practicable, the pollution intensity of such 

20 covered component part or covered trans21 forming part shall be calculated based on— 

22 ‘‘(i) the amount of such covered com23 ponent part or covered transforming part 

24 originating in each country of origin (in25 cluding the United States) which supply 


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1 such covered component part or covered 

2 transforming part for the covered product, 

3 and 

4 ‘‘(ii) the pollution intensity associated 

5 with production of such covered component 

6 part or covered transforming part within 

7 the country of origin. 

8 ‘‘(B) DE MINIMIS RULE.—For purposes of 

9 subparagraph (A), a covered component part or 

10 covered transforming part shall not be included 

11 if such covered component part or covered 

12 transforming part accounts for less than 5 per13 cent of— 

14 ‘‘(i) the total weight of the covered 

15 product, 

16 ‘‘(ii) the total monetary value of the 

17 covered component parts or covered trans18 forming parts contained in the covered 

19 product, and 

20 ‘‘(iii) the pollution intensity of the 

21 covered product (as otherwise determined 

22 under such subparagraph). 

23 ‘‘(C) ADDITIONAL MEASUREMENTS.—In 

24 the case of a petition to include a product which 

25 contains any other covered component part or 


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1 covered transforming part as a covered product 

2 under section 4695(d), such petition— 

3 ‘‘(i) shall provide such information as 

4 is deemed necessary to make any calcula5 tion under subparagraph (A), and 

6 ‘‘(ii) may include, at the election of 

7 the petitioner, additional calculations to 

8 achieve an accurate determination of the 

9 pollution intensity of such product which 

10 are not tied solely to the pollution intensity 

11 of the covered component part or covered 

12 transforming part. 

13 ‘‘(6) TREATMENT OF FACILITY-SPECIFIC

14 AGREEMENTS.—For the purpose of determining the 

15 pollution intensity of any covered product which is 

16 produced in a foreign country, if— 

17 ‘‘(A) such product is produced in a facility 

18 which is— 

19 ‘‘(i) located in such country, and 

20 ‘‘(ii) covered by an agreement estab21 lished under section 204 of the Foreign 

22 Pollution Fee Act of 2023, and 

23 ‘‘(B) the pollution intensity of the product 

24 produced in such facility would otherwise lower 


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1 the average pollution intensity associated with 

2 the production of such product in such country, 

3 the pollution intensity of the product produced in 

4 such facility shall not be included for purposes of 

5 calculating the pollution intensity associated with 

6 production of such product in the country of origin. 

7 ‘‘(e) ALTERATIONS FOR FOREIGN DATA.—For pur8 poses of determining the pollution intensity values with 

9 respect to any country of origin for a covered product, if— 

10 ‘‘(1) the baseline pollution intensity for such 

11 covered product was determined utilizing a method12 ology based on data described in subsection (c) 

13 which was provided at a more localized level, or in 

14 more granular detail, than the data available with 

15 respect to the country of origin, or 

16 ‘‘(2) due to unavailable or unverifiable data 

17 with respect to the country of origin, such deter18 mination required estimation through modeling 

19 which was not performed for purposes of the calcula20 tion of the baseline pollution intensity, 

21 the pollution intensity otherwise determined under this 

22 section with respect to production of such covered product 

23 in such country of origin shall be increased by 20 percent. 

24 ‘‘(f) FOREIGN ILLUSTRATION OF POLLUTION INTEN25 SITY.— 


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1 ‘‘(1) IN GENERAL.—Any country may provide 

2 the Secretary with access to any data necessary to 

3 establish an alternative pollution intensity with re4 spect to any covered product. 

5 ‘‘(2) ALTERNATIVE POLLUTION INTENSITY.— 

6 ‘‘(A) IN GENERAL.—In the case of a coun7 try which provides data described in paragraph 

8 (1), the Secretary may adjust the pollution in9 tensity with respect to any covered product, 

10 provided that the country providing such 

11 data— 

12 ‘‘(i) ensures the accuracy of all rel13 evant data for all covered products, 

14 ‘‘(ii) provides data at a level of granu15 larity which satisfies the methods estab16 lished by the Board, and 

17 ‘‘(iii) provides the data consistently 

18 and in a manner that is verifiable by the 

19 Secretary. 

20 ‘‘(B) ROLE OF THE BOARD.—For purposes 

21 of this paragraph, the Board shall assist the 

22 Secretary by verifying relevant data and calcu23 lating adjustments to pollution intensities. 

24 ‘‘(3) PUBLICATION OF ALTERNATIVE POLLU25 TION INTENSITY VALUES.—In the case of any polluVerDate Sep 11 2014 00:43 Nov 04, 2023 Jkt 049200 PO 00000 Frm 00031 Fmt 6652 Sfmt 6201 E:\BILLS\S3198.IS S3198

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1 tion intensity with respect to any covered product 

2 which is adjusted pursuant to paragraph (2)— 

3 ‘‘(A) the Secretary shall publish such ad4 justment in the Federal Register, and 

5 ‘‘(B) such adjustment shall take effect in 

6 the following calendar year. 

7 ‘‘(g) TREATMENT OF POTENTIAL CIRCUMVENTION

8 AND OUTLIERS.— 

9 ‘‘(1) IN GENERAL.—On or after the date of the 

10 first reassessment required under section 4698, the 

11 Secretary, in consultation with the United States 

12 Trade Representative, may assign a product which is 

13 produced by a foreign producer to a tier which is 

14 different from the tier determined under section 

15 4692 with respect to the country of origin in which 

16 such producer is located if— 

17 ‘‘(A) subsequent to the applicable date (as 

18 described in section 4691(a)(2)), such foreign 

19 producer has increased production of such prod20 uct by not less than 5 percent through the es21 tablishment of a new production facility or the 

22 expansion of an existing production facility, and 

23 ‘‘(B) the increase in production described 

24 in subparagraph (A) results in an increase in 

25 pollution intensity associated with production of 


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1 such product by such foreign producer which is 

2 at least 5 percent greater than the pollution in3 tensity associated with production of such prod4 uct in such country (as determined under para5 graph (2)). 

6 ‘‘(2) COMPARISON OF POLLUTION INTENSITY.— 

7 For purposes of paragraph (1)(B), the pollution in8 tensity associated with production of a covered prod9 uct in a foreign country shall be equal to the lowest 

10 pollution intensity determination with respect to pro11 duction of such product in such country for any pe12 riod beginning after the applicable date under sec13 tion 4691(a)(2). 

14 ‘‘(3) TREATMENT OF FOREIGN OWNERSHIP.— 

15 For purposes of paragraph (1), if the Secretary de16 termines that— 

17 ‘‘(A) a foreign producer is owned, oper18 ated, or majority financed by— 

19 ‘‘(i) a country (referred to in this 

20 paragraph as the ‘base country’) other 

21 than the country in which the production 

22 facility is located, or 

23 ‘‘(ii) an entity which is headquartered 

24 in the base country, and 


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1 ‘‘(B) the pollution intensity associated with 

2 production of the covered product in the base 

3 country is greater than the pollution intensity 

4 associated with production of such product by 

5 the foreign producer, 

6 the Secretary shall assign the covered product which 

7 is produced by such foreign producer to the same 

8 tier determined under section 4692 with respect to 

9 production of such covered product in the base coun10 try. 

11 ‘‘(4) FOREIGN PRODUCER.—For purposes of 

12 this subsection, the term ‘foreign producer’ means 

13 any producer which is not a domestic producer. 

14 ‘‘SEC. 4694. TREATMENT OF INTERNATIONAL PARTNER15 SHIPS. 

16 ‘‘(a) ADJUSTMENT OF FEE FOR PARTNER COUN17 TRIES.—In the case of a covered product which is pro18 duced in a country which is a party to an international 

19 partnership agreement which satisfies the conditions 

20 under sections 201 and 202 of the Foreign Pollution Fee 

21 Act of 2023 (referred to in this section as a ‘partner coun22 try’), no fee under section 4691 shall apply. 

23 ‘‘(b) ELIMINATION OF TREATMENT OF FOREIGN

24 DATA.—Section 4693(e) shall not apply to any partner 

25 country. 


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1 ‘‘SEC. 4695. COVERED PRODUCTS. 

2 ‘‘(a) IN GENERAL.—The term ‘covered product’ 

3 means articles classifiable under the same 6-digit sub4 heading number of the HTS within one of the following 

5 categories: 

6 ‘‘(1) Aluminum classifiable under any of head7 ings 7601 through 7616 of the HTS. 

8 ‘‘(2) Biofuels classifiable under subheading 

9 2207.10 or 2207.20, or heading 3826, of the HTS. 

10 ‘‘(3) Cement classifiable under heading 2523, 

11 6810, or 6811, or subheading 3824.50, of the HTS. 

12 ‘‘(4) Crude oil classifiable under heading 2709 

13 of the HTS. 

14 ‘‘(5) Glass classifiable under any of headings 

15 7001 through 7020 of the HTS. 

16 ‘‘(6) Hydrogen, methanol, or ammonia classifi17 able under heading 2814 or any of subheadings 

18 2804.10, 2905.11, 3102.10, 3102.30, or 3102.80 

19 the HTS. 

20 ‘‘(7) Iron and steel classifiable under any of 

21 headings 7201 through 7326 of the HTS. 

22 ‘‘(8) Lithium-ion batteries classifiable under 

23 subheading 8507.60 of the HTS. 

24 ‘‘(9) Minerals classifiable under any of the fol25 lowing headings or subheadings of the HTS: 

‘‘2504 ............................. 2825.50 .......................... 3801.10 


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2612.10 .......................... 2827.41 .......................... 7401 through 7404 

2804.69 .......................... 2833.24 .......................... 7406 

2820.10 .......................... 2836.91 .......................... 7501 through 7504 

2822.00 .......................... 2844.10 .......................... 8105.20 

2825.20 .......................... 2844.20 .......................... 8105.30 

2825.40 .......................... 2844.30 .......................... 8111. 

1 ‘‘(10) Natural gas classifiable under subheading 

2 2711.11 or 2711.21 of the HTS. 

3 ‘‘(11) Petrochemicals classifiable under heading 

4 2901 or subheading 2711.14 of the HTS. 

5 ‘‘(12) Plastics classifiable under any of head6 ings 3901 through 3926 of the HTS. 

7 ‘‘(13) Pulp and paper classifiable under any of 

8 headings 4701 through 4707 or 4801 through 4813 

9 of the HTS. 

10 ‘‘(14) Refined petroleum products classifiable 

11 under any of headings 2710, 2712 through 2715, or 

12 2803 or subheadings 2902.20, 2902.30, or 2902.44, 

13 of the HTS. 

14 ‘‘(15) Solar cells and panels classifiable under 

15 any of subheadings 8541.42 through 8541.43 or 

16 8501.71 through 8501.80 of the HTS. 

17 ‘‘(16) Wind turbines classifiable under sub18 heading 8502.31 of the HTS. 

19 ‘‘(b) DETERMINATION OF RELEVANT HTS NUM20 BERS.— 

21 ‘‘(1) IN GENERAL.—The Secretary shall in22 clude, in the final rule required by section 4698, a 

23 list of covered products that includes the appropriate 


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1 heading or subheading of the HTS for each such 

2 product. 

3 ‘‘(2) SCOPE.—Inclusion of a HTS code under 

4 paragraph (1) shall only apply with respect to a cov5 ered product if such product is— 

6 ‘‘(A) described in subsection (a) and not 

7 subject to an exception under section 

8 4692(d)(2), or 

9 ‘‘(B) added pursuant to subsection (d) or 

10 (e). 

11 ‘‘(c) NATURALLY OCCURRING COVERED PROD12 UCTS.— 

13 ‘‘(1) POLLUTION INTENSITY CALCULATIONS.— 

14 In the case of a naturally occurring covered product 

15 which is refined in a manner whereby such product 

16 becomes a transforming part for multiple other 

17 products (referred to in this paragraph as a ‘result18 ing product’), the pollution intensity associated with 

19 the refining of the naturally occurring covered prod20 uct shall be divided between the resulting products 

21 in a manner consistent with the proportion of the 

22 naturally occurring product which is utilized in each 

23 resulting product and the quantity of each resulting 

24 product. 


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1 ‘‘(2) DEFINITION.—For purposes of this sub2 section, the term ‘naturally occurring covered prod3 uct’ means crude oil or minerals. 

4 ‘‘(d) ADDITIONAL COVERED PRODUCTS.— 

5 ‘‘(1) IN GENERAL.—An eligible entity may sub6 mit a petition (or, in the case of more than one eligi7 ble entity, may jointly submit a petition) to the Sec8 retary for any product (based on the 6-digit sub9 heading number of the product under the HTS) to 

10 be included as a covered product for purposes of this 

11 subchapter. 

12 ‘‘(2) ELIGIBLE ENTITY.—For purposes of this 

13 subsection, the term ‘eligible entity’ means, with re14 spect to any product— 

15 ‘‘(A) a domestic producer of such product, 

16 ‘‘(B) trade organizations consisting of pro17 ducers of such product, 

18 ‘‘(C) labor unions representing individuals 

19 employed in the production of such product, 

20 and 

21 ‘‘(D) individuals employed in the produc22 tion of such product. 

23 ‘‘(3) THRESHOLD.—The Secretary may not ap24 prove a petition described in paragraph (1) with re25 spect to any product unless not less than 50 percent 


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1 of the total annual domestic production with respect 

2 to such product is attributable to domestic producers 

3 which are represented in such petition. 

4 ‘‘(4) MEASUREMENT.— 

5 ‘‘(A) IN GENERAL.—For purposes of deter6 mining whether the total annual domestic pro7 duction requirement under paragraph (3) has 

8 been satisfied, the petitioners may elect whether 

9 such determination shall be made on the basis 

10 of— 

11 ‘‘(i) net tons of production during the 

12 preceding year, or 

13 ‘‘(ii) net monetary value of sales of 

14 the product during the preceding year. 

15 ‘‘(B) TREATMENT OF TRADE ORGANIZA16 TIONS.—For purposes of subparagraph (A), in 

17 the case of a trade organization described in 

18 paragraph (2)(B), the total annual domestic 

19 production attributable to any domestic pro20 ducer which is part of such organization shall 

21 be included for purposes of determining wheth22 er the requirement under such subparagraph 

23 has been satisfied. 

24 ‘‘(C) TREATMENT OF LABOR UNIONS AND

25 INDIVIDUALS.—For purposes of subparagraph 


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1 (A), in the case of a labor union described in 

2 paragraph (2)(C) or individuals described in 

3 paragraph (2)(D) (referred to in this subpara4 graph as ‘petitioning employees’), the total an5 nual domestic production attributable to such 

6 labor union or the petitioning employees shall 

7 be determined based on— 

8 ‘‘(i) the total production of the prod9 uct during the preceding year by any pro10 ducer that employs members of such labor 

11 union or petitioning employees, and 

12 ‘‘(ii) the percentage of the total num13 ber of employees of such producers during 

14 the preceding year who are members of 

15 such labor union or petitioning employees. 

16 ‘‘(D) EXCLUSION OF DOUBLE COUNT17 ING.—In the case of more than 1 eligible entity 

18 which is included in a petition, the Secretary 

19 shall ensure that any production attributable to 

20 each such eligible entity is not included in the 

21 determination under paragraph (3) more than 

22 once. 

23 ‘‘(5) PETITION.—With respect to any product, 

24 the petition described in paragraph (1) shall in25 clude— 


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1 ‘‘(A) the applicable HTS code with respect 

2 to such product, 

3 ‘‘(B) the eligible entities and the percent4 age of domestic production represented by such 

5 eligible entities, and 

6 ‘‘(C) proposed methods for determination 

7 of the pollution intensity with respect to such 

8 product. 

9 ‘‘(6) POLLUTION INTENSITY.—For purposes of 

10 paragraph (5)(C), the proposed methods shall— 

11 ‘‘(A) satisfy the applicable requirements 

12 under section 4693, 

13 ‘‘(B) utilize existing pollution intensity val14 ues for any covered component part, covered 

15 contributing part, or covered transforming part 

16 contained in the product, and 

17 ‘‘(C) at the election of the petitioner, for 

18 purposes of achieving an accurate calculation of 

19 pollution intensity, include additional methods 

20 to determine the pollution intensity of any com21 ponent part or transforming part which is not 

22 included under subparagraph (B). 

23 ‘‘(7) IMPLEMENTATION.— 

24 ‘‘(A) IN GENERAL.—Not later than 30 

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1 scribed in paragraph (1) was received by the 

2 Secretary, the Secretary shall determine wheth3 er the domestic production requirement under 

4 such paragraph is satisfied with respect to the 

5 product to be included as a covered product. 

6 ‘‘(B) INCLUSION AS COVERED PRODUCT.— 

7 For purposes of subparagraph (A), if the Sec8 retary determines that the domestic production 

9 requirement under paragraph (3) is satisfied 

10 with respect to the product— 

11 ‘‘(i) such product shall be included as 

12 a covered product for purposes of this sub13 chapter, 

14 ‘‘(ii) the inclusion of such product as 

15 a covered product shall be published in the 

16 Federal Register, and 

17 ‘‘(iii) such product shall be subject to 

18 the rulemaking process under section 

19 4698(d). 

20 ‘‘(C) DETERMINATION OF POLLUTION IN21 TENSITY.—Subsequent to any determination 

22 under subparagraph (B) to include a product as 

23 a covered product for purposes of this sub24 chapter, the Board shall— 


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1 ‘‘(i) review the proposed methods for 

2 determination of the pollution intensity 

3 with respect to such product (as described 

4 in paragraph (5)(C)), and 

5 ‘‘(ii) make any adjustments necessary 

6 to— 

7 ‘‘(I) ensure compliance with the 

8 requirements under section 4693, and 

9 ‘‘(II) account for availability of 

10 necessary data and information for 

11 such determination. 

12 ‘‘(e) CRITICAL MINERALS.— 

13 ‘‘(1) IN GENERAL.—In the case of any mineral 

14 which— 

15 ‘‘(A) is not described in subsection (a)(9), 

16 and 

17 ‘‘(B) is included on the list of critical min18 erals published by the United States Geological 

19 Survey, 

20 the Secretary, in consultation with the United States 

21 Trade Representative, may elect to include such 

22 mineral as a covered product for purposes of this 

23 subchapter. 

24 ‘‘(2) PUBLICATION AND RULEMAKING.—In the 

25 case of any mineral which is included as a covered 


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1 product by the Secretary pursuant to paragraph 

2 (1)— 

3 ‘‘(A) the inclusion of such product as a 

4 covered product shall be published in the Fed5 eral Register, and 

6 ‘‘(B) such product shall be subject to the 

7 rulemaking process under section 4698(d). 

8 ‘‘(f) APPLICATION FOR ADDITIONAL COVERED PROD9 UCTS.—With respect to any product included as a covered 

10 product under subsection (d) or (e), imposition of the fee 

11 under section 4691 shall take effect in the first calendar 

12 year beginning after the issuance of the final rule de13 scribed in section 4698(d)(1)(B). 

14 ‘‘SEC. 4696. NATIONAL LABORATORY ADVISORY BOARD ON 

15 GLOBAL POLLUTION CHALLENGES. 

16 ‘‘(a) IN GENERAL.— 

17 ‘‘(1) ESTABLISHMENT.—There is hereby estab18 lished the National Laboratory Advisory Board on 

19 Global Pollution Challenges (referred to in this sub20 chapter as the ‘Board’). 

21 ‘‘(2) DUTIES.—The Board shall— 

22 ‘‘(A) in accordance with section 4693, es23 tablish methods of calculating— 


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1 ‘‘(i) the baseline pollution intensity, as 

2 determined based on production of the cov3 ered product in the United States, and 

4 ‘‘(ii) the respective pollution intensity 

5 for production of such covered product in 

6 any foreign country, 

7 ‘‘(B) provide recommendations for rule8 making and reassessments in accordance with 

9 section 4698, and 

10 ‘‘(C) provide assistance with regard to sub11 sections (f) and (g) of section 4693, as well as 

12 any other requests from the Secretary. 

13 ‘‘(3) CHAIR.—The chair of the Board (referred 

14 to in this section as the ‘Chair’) shall be the Direc15 tor of the National Energy Technology Laboratory. 

16 ‘‘(4) DEPUTY CHAIRS.—The deputy chairs of 

17 the Board (referred to in this section as the ‘Deputy 

18 Chairs’) shall be— 

19 ‘‘(A) the Director of Idaho National Lab20 oratory, 

21 ‘‘(B) the Director of the National Renew22 able Energy Laboratory, 

23 ‘‘(C) the Director of the Pacific Northwest 

24 National Laboratory, and 


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1 ‘‘(D) the Chair of the Council of Environ2 mental Quality. 

3 ‘‘(5) OTHER BOARD MEMBERS.— 

4 ‘‘(A) IN GENERAL.—In addition to the 

5 Chair and Deputy Chairs, the Board shall con6 sist of— 

7 ‘‘(i) 2 representatives from each of the 

8 industrial sectors described in paragraphs 

9 (1) through (16) of section 4695(a), and 

10 ‘‘(ii) 1 representative from each rel11 evant Federal agency, as designated by 

12 such agency. 

13 ‘‘(B) APPOINTMENT.— 

14 ‘‘(i) INITIAL APPOINTMENT.—For 

15 purposes of subparagraph (A)(i), each in16 dustrial sector described in paragraphs (1) 

17 through (16) of section 4695(a) shall (pur18 suant to clause (ii)) designate the rep19 resentatives to serve for the 36-month pe20 riod subsequent to the date of enactment 

21 of this subchapter. 

22 ‘‘(ii) APPOINTMENT PROCESS.—The 

23 Secretary shall establish a process by 

24 which— 


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1 ‘‘(I) an individual who would sat2 isfy the requirements described in 

3 subparagraph (C) can be nominated 

4 (including by self-nomination) to serve 

5 as a representative on the Board, 

6 ‘‘(II) allows each domestic pro7 ducer of the relevant industrial sector 

8 the opportunity to elect individuals 

9 nominated under subclause (I) to 

10 serve on the Board, 

11 ‘‘(III) any representative elected 

12 to serve on the Board is designated in 

13 a timely manner with respect to rel14 evant rulemakings under section 

15 4698, and 

16 ‘‘(IV) a new round of nomina17 tions and elections occurs for each re18 assessment under section 4698(c). 

19 ‘‘(C) REPRESENTATIVES.—For purposes of 

20 subparagraph (A)(i), each elected representative 

21 shall be the highest ranking officer (or their 

22 designee) of a domestic producer which— 

23 ‘‘(i) manufactures a product which is 

24 included under paragraphs (1) through 

25 (16) of section 4695(a), and 


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1 ‘‘(ii) has annual revenues of greater 

2 than $40,000,000. 

3 ‘‘(6) APPROVAL OF RECOMMENDATIONS.—For 

4 purposes of any recommendations required to be 

5 submitted to the Secretary under subsection (b), not 

6 less than two-thirds of the representatives described 

7 in paragraph (5)(A)(i) shall be required to approve 

8 such recommendation. 

9 ‘‘(7) STAFF.— 

10 ‘‘(A) IN GENERAL.—With respect to car11 rying out any duties described in paragraph (2), 

12 any laboratory described in paragraph (3) or 

13 (4) may designate staff to assist with such du14 ties. 

15 ‘‘(B) DETAILEES.—Upon the Board’s re16 quest, the Administrator, the Secretary of En17 ergy, and the Director of the Office of Science 

18 and Technology Policy shall detail, without re19 imbursement, employees from each agency to 

20 assist the Board in carrying out its duties 

21 under this section. 

22 ‘‘(b) FAILURE TO SUBMIT RECOMMENDATIONS.—In 

23 any case in which the Board fails to timely transmit a 

24 recommendation under section 4698, the Secretary may 


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1 establish rules, or alter reassessments, required under this 

2 section or section 4698 without consultation of the Board. 

3 ‘‘(c) NO CAUSE OF ACTION.—Any recommendation, 

4 verification, or report issued by the Board under this sec5 tion shall not create or give rise to any claim or cause 

6 of action. 

7 ‘‘SEC. 4697. DEFINITIONS. 

8 ‘‘(a) IN GENERAL.—For purposes of this sub9 chapter— 

10 ‘‘(1) ADMINISTRATOR.—The term ‘Adminis11 trator’ means the Administrator of the Environ12 mental Protection Agency. 

13 ‘‘(2) APPROPRIATE CONGRESSIONAL COMMIT14 TEES.—The term ‘appropriate congressional com15 mittees’ means the Committee on Finance of the 

16 Senate and the Committee on Ways and Means of 

17 the House of Representatives. 

18 ‘‘(3) BASELINE POLLUTION INTENSITY.—The 

19 term ‘baseline pollution intensity’ means the pollu20 tion intensity associated with production of a cov21 ered product in the United States. 

22 ‘‘(4) CARBON DIOXIDE EQUIVALENT.—The 

23 term ‘carbon dioxide equivalent’ means, with respect 

24 to a greenhouse gas, the quantity of such gas that 

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1 mined over a 100-year period, to 1 metric ton of car2 bon dioxide, as determined pursuant to table A–1 of 

3 subpart A of part 98 of title 40, Code of Federal 

4 Regulations, as in effect on January 1, 2023. 

5 ‘‘(5) COMPONENT PART.—The term ‘component 

6 part’ means, with respect to a covered product, any 

7 component which is contained as an independent 

8 product utilized in the completed covered product. 

9 ‘‘(6) CONTRIBUTING PART.—The term ‘contrib10 uting part’ means, with respect to a covered product, 

11 any product which was used in the creation of such 

12 covered product in a manner which is consistent 

13 with— 

14 ‘‘(A) combustion of such product to pro15 vide energy to produce the covered product, or 

16 ‘‘(B) utilization of such product to provide 

17 electricity necessary to operate machinery used 

18 to create the covered product. 

19 ‘‘(7) COUNTRY OF ORIGIN.—The term ‘country 

20 of origin’ means— 

21 ‘‘(A) the country in which a covered prod22 uct was produced, or 

23 ‘‘(B) the last country in which a covered 

24 product was substantially transformed, 


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1 as determined in a manner consistent with U.S. 

2 Customs and Border Protection procedures, directly 

3 prior to importation into the United States. 

4 ‘‘(8) COVERED COMPONENT PART.—The term 

5 ‘covered component part’ means any component part 

6 which is itself a covered product. 

7 ‘‘(9) COVERED CONTRIBUTING PART.—The 

8 term ‘covered contributing part’ means any contrib9 uting part which is itself a covered product. 

10 ‘‘(10) COVERED ENTITY.—The term ‘covered 

11 entity’ means importer of record of a covered prod12 uct at the time of the importation of such product. 

13 ‘‘(11) COVERED TRANSFORMING PART.—The 

14 term ‘covered transforming part’ means any trans15 forming part which is itself a covered product. 

16 ‘‘(12) DOMESTIC PRODUCER.—The term ‘do17 mestic producer’ means a producer which— 

18 ‘‘(A) has filed their articles of incorpora19 tion in the United States, and 

20 ‘‘(B) is not a subsidiary of an entity which 

21 is incorporated in a nonmarket economy coun22 try. 

23 ‘‘(13) EXPORT OR DEVELOPMENT FINANC24 ING.—The term ‘export or development financing’ 

25 means financing— 


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1 ‘‘(A) for the purposes of— 

2 ‘‘(i) developing international produc3 tion capacity, or 

4 ‘‘(ii) securing the exportation of goods 

5 or technology manufactured in the United 

6 States (including technologies used to 

7 manufacture covered products), and 

8 ‘‘(B) which is provided by— 

9 ‘‘(i) the Department of Energy, 

10 ‘‘(ii) the Department of Commerce, 

11 ‘‘(iii) the Department of State, 

12 ‘‘(iv) the Export-Import Bank of the 

13 United States, 

14 ‘‘(v) the United States International 

15 Development Finance Corporation, 

16 ‘‘(vi) the Trade and Development 

17 Agency, 

18 ‘‘(vii) the United States Agency for 

19 International Development, or 

20 ‘‘(viii) the Office of the United States 

21 Trade Representative. 

22 ‘‘(14) FREE TRADE AGREEMENT.—The term 

23 ‘free trade agreement’ means an agreement with 1 

24 or more countries which— 


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1 ‘‘(A) reduces or eliminates tariffs and non2 tariff barriers between the countries party to 

3 such agreement, and 

4 ‘‘(B) is approved by Congress. 

5 ‘‘(15) GREENHOUSE GAS.—The term ‘green6 house gas’ has the meaning given such term in sec7 tion 98.6 of title 40, Code of Federal Regulations 

8 (as in effect on the date of enactment of this sub9 chapter). 

10 ‘‘(16) HTS.—The term ‘HTS’ means the Har11 monized Tariff Schedule of the United States. 

12 ‘‘(17) INTERNATIONAL PARTNERSHIP AGREE13 MENT.—The term ‘international partnership agree14 ment’ means an international partnership agreement 

15 established pursuant to title II of the Foreign Pollu16 tion Fee Act of 2023. 

17 ‘‘(18) NONMARKET ECONOMY COUNTRY.—The 

18 term ‘nonmarket economy country’ has the meaning 

19 given such term in section 771(18) of the Tariff Act 

20 of 1930 (19 U.S.C. 1677(18)). 

21 ‘‘(19) POINT SOURCE POLLUTION.—The term 

22 ‘point source pollution’ means pollution emitted into 

23 the ambient air at the site of the manufacturing of 

24 a product. 


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1 ‘‘(20) POLLUTION.—The term ‘pollution’ means 

2 greenhouse gas emissions. 

3 ‘‘(21) POLLUTION INTENSITY.—The term ‘pol4 lution intensity’ means the amount of greenhouse 

5 gases (as determined under section 4693), expressed 

6 in metric tons of carbon dioxide equivalent, which 

7 are emitted into the atmosphere in the production of 

8 a single unit of a covered product (as determined 

9 pursuant to section 4691(c)). 

10 ‘‘(22) POLLUTION INTENSITY DIFFERENCE.— 

11 The term ‘pollution intensity difference’ means, with 

12 respect to any covered product, the difference (ex13 pressed as a percentage) between— 

14 ‘‘(A) the pollution intensity associated with 

15 production of such product in the country of or16 igin, and 

17 ‘‘(B) the baseline pollution intensity with 

18 respect to such product. 

19 ‘‘(23) PRODUCER.—The term ‘producer’ means 

20 the entity responsible for the creation of a product 

21 through— 

22 ‘‘(A) a manufacturing process, or 

23 ‘‘(B) in the case of a geologic resource, ex24 traction. 


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1 ‘‘(24) PRODUCT.—The term ‘product’ means 

2 any article, regardless of whether such article is— 

3 ‘‘(A) exported from the country of origin, 

4 or 

5 ‘‘(B) produced and sold only within the 

6 country of origin. 

7 ‘‘(25) RELEVANT FEDERAL AGENCY.—The 

8 term ‘relevant Federal agency’ means— 

9 ‘‘(A) the Department of the Treasury, 

10 ‘‘(B) the Department of Energy, 

11 ‘‘(C) the Office of the United States Trade 

12 Representative, 

13 ‘‘(D) the Department of Commerce, 

14 ‘‘(E) the Department of State, 

15 ‘‘(F) the Environmental Protection Agen16 cy, 

17 ‘‘(G) the Council on Environmental Qual18 ity, 

19 ‘‘(H) the Office of Science and Technology 

20 Policy, and 

21 ‘‘(I) the Department of Homeland Secu22 rity. 

23 ‘‘(26) TRANSFORMING PART.—The term ‘trans24 forming part’ means a product which is substantially 

25 transformed or refined into another product. 


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1 ‘‘(27) UPSTREAM POLLUTION.—The term ‘up2 stream pollution’ means, with respect to any covered 

3 product— 

4 ‘‘(A) the pollution associated with all cov5 ered component parts, covered contributing 

6 parts, and covered transforming parts, and 

7 ‘‘(B) any fugitive pollution which occurs 

8 during extraction, refining, and transport of 

9 any part described in subparagraph (A). 

10 ‘‘(b) WORLD BANK CLASSIFICATIONS.—For purposes 

11 of this subchapter— 

12 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

13 the terms ‘high-income country’, ‘upper-middle-in14 come country’, ‘lower-middle-income country’, and 

15 ‘low-income country’ shall be defined based on the 

16 classification of the economy of a country by the 

17 World Bank. 

18 ‘‘(2) HIGH-INCOME AND UPPER-MIDDLE-IN19 COME COUNTRIES.—In the case of any country 

20 which, as of January 1, 2023, is classified by the 

21 World Bank as a high-income country or an upper22 middle-income country, such country shall not be eli23 gible to be reclassified as a lower-middle-income 

24 country or a low-income country. 


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1 ‘‘SEC. 4698. ESTABLISHMENT PROCESS AND REASSESS2 MENTS. 

3 ‘‘(a) IN GENERAL.—The processes established under 

4 this section shall be utilized to— 

5 ‘‘(1) provide the initial rules for application of 

6 the fee imposed under section 4691, and 

7 ‘‘(2) perform any required reassessment. 

8 ‘‘(b) INITIAL RULEMAKING.— 

9 ‘‘(1) CLASSIFICATION OF COVERED PROD10 UCTS.—Not later than 12 months after the date of 

11 enactment of this subchapter, the Secretary shall 

12 issue a final rule for purposes of— 

13 ‘‘(A) determining the appropriate heading 

14 or subheading number of the HTS for each cov15 ered product (as required under section 

16 4695(b)); and 

17 ‘‘(B) determining the appropriate measure18 ment of any covered product (as described in 

19 section 4691(c)). 

20 ‘‘(2) POLLUTION INTENSITY CALCULATIONS.— 

21 ‘‘(A) IN GENERAL.—Not later than 18 

22 months after the date of enactment of this sub23 chapter, the Secretary shall publish a final rule 

24 establishing— 

25 ‘‘(i) in a manner consistent with sec26 tion 4693, the pollution intensity with reVerDate Sep 11 2014 00:43 Nov 04, 2023 Jkt 049200 PO 00000 Frm 00057 Fmt 6652 Sfmt 6201 E:\BILLS\S3198.IS S3198

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1 spect to each covered product and country 

2 of origin, and 

3 ‘‘(ii) methods for any foreign country 

4 to establish an alternative pollution inten5 sity with respect to any covered product 

6 pursuant to subsection (f) of such section. 

7 ‘‘(B) CIRCUMVENTION.—Not later than 36 

8 months after the date of enactment of this sub9 chapter, the Secretary shall publish a final rule 

10 to address producers described in section 

11 4693(g). 

12 ‘‘(3) ESTABLISHMENT OF VARIABLE

13 CHARGES.—Not later than 24 months after the date 

14 of enactment of this subchapter, the Secretary (in 

15 consultation with the United States Trade Rep16 resentative) shall issue a final rule establishing the 

17 variable charge for covered products for purposes of 

18 section 4692. 

19 ‘‘(4) ADDITIONAL RULEMAKING.—In addition 

20 to the rules described in paragraphs (1) through (3), 

21 any rules which are necessary in order to properly 

22 apply the fee under section 4691 shall be issued not 

23 later than the date which 24 months after the date 

24 of enactment of this subchapter. 

25 ‘‘(c) REASSESSMENT.— 


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1 ‘‘(1) IN GENERAL.—Not later than 3 years 

2 after the date of the issuance of any final rule de3 scribed in subsection (b), and every 3 years there4 after, the Secretary shall reassess and, as necessary, 

5 issue a final rule to adjust, the existing final rule. 

6 ‘‘(2) REVISION.—The United States Inter7 national Trade Commission, in consultation with the 

8 Secretary, shall annually publish a notice reflecting 

9 headings, subheadings, and statistical reporting 

10 numbers of the HTS contained in any rule issued 

11 under this section which need to be amended due to 

12 revisions to the HTS. 

13 ‘‘(3) NEWLY AVAILABLE DATA.—With respect 

14 to any reassessment described in paragraph (1), the 

15 Secretary may utilize any data which is available as 

16 a result of enhancements in the ability to assess do17 mestic or foreign pollution pursuant to legislation 

18 enacted or developments in technology subsequent to 

19 the issuance of the most recent final rule. 

20 ‘‘(4) INTERNATIONAL PARTNERSHIPS.—In the 

21 case of an international partnership agreement, the 

22 Secretary may, at the time of the establishment of 

23 such agreement and in a manner consistent with 

24 such agreement, issue a final rule to adjust the pol25 lution intensity for any covered product (as deterVerDate Sep 11 2014 00:43 Nov 04, 2023 Jkt 049200 PO 00000 Frm 00059 Fmt 6652 Sfmt 6201 E:\BILLS\S3198.IS S3198

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1 mined pursuant to subsection (b)(2)) produced in a 

2 country which is a party to such agreement. 

3 ‘‘(5) TIMING.—In the case of any final rule 

4 issued with respect to any reassessment under para5 graph (1), the application of such rule shall take ef6 fect on January 1 of the first calendar year begin7 ning subsequent to the issuance of such final rule. 

8 ‘‘(d) ADDITIONAL COVERED PRODUCTS.— 

9 ‘‘(1) IN GENERAL.—With respect to any prod10 uct which is included as a covered product pursuant 

11 to subsection (d) or (e) of section 4695 following the 

12 publication in the Federal Register (as described in 

13 subsection (d)(7)(B)(ii) or subsection (e)(2)(A) of 

14 such section, as applicable)— 

15 ‘‘(A) not later than 12 months after the 

16 date of such publication, the Secretary shall 

17 issue a final rule with respect to the pollution 

18 intensity of such covered product and any coun19 try of origin consistent with the requirements 

20 under section 4693, and 

21 ‘‘(B) not later than 6 months after the 

22 issuance of the final rule described in subpara23 graph (A), the Secretary shall issue a final rule 

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1 ered product consistent with the requirements 

2 under section 4692. 

3 ‘‘(2) REASSESSMENTS.— 

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

5 subparagraph (B), any classification or rule es6 tablished pursuant to paragraph (1) with re7 spect to any covered product shall remain in ef8 fect under the next reassessment under sub9 section (c). 

10 ‘‘(B) EXCEPTION.—With respect to any 

11 product included as a covered product under 

12 subsection (d) or (e) of section 4695, if the date 

13 for imposition of the fee under section 4691 (as 

14 determined pursuant to section 4695(f)) is less 

15 than 1 year from the date of the next reassess16 ment under subsection (c), such product shall 

17 not be subject to such reassessment. 

18 ‘‘(e) PROCESS.— 

19 ‘‘(1) BOARD RECOMMENDATIONS.—Not later 

20 than 6 months prior to— 

21 ‘‘(A) the date on which any final rule is re22 quired to be issued under paragraph (1), (2), or 

23 (3) of subsection (b), and 

24 ‘‘(B) the date on which any reassessment 

25 is required to be made under subsection (c)(1), 


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1 the Board shall provide recommendations to the Sec2 retary with respect to such final rule or reassess3 ment. 

4 ‘‘(2) NOTICE.—Not later than 30 days after re5 ceiving the recommendations of the Board provided 

6 under paragraph (1), the Secretary shall— 

7 ‘‘(A) publish a notice of proposed rule8 making based on such recommendations with 

9 respect to the final rule or reassessment, and 

10 ‘‘(B) brief the appropriate congressional 

11 committees and consult with such committees 

12 regarding such final rule or reassessment. 

13 ‘‘(3) COMMENT.—Following the notice under 

14 paragraph (2)(A), the Secretary shall provide a pub15 lic comment period of not less than 60 days. 

16 ‘‘(4) CONSULTATION.—Prior to the issuance of 

17 any final rule or reassessment under this section re18 garding the appropriate classification of covered 

19 products, the Secretary shall consult with— 

20 ‘‘(A) the United States Trade Representa21 tive, 

22 ‘‘(B) the United States International 

23 Trade Commission, 

24 ‘‘(C) the Commissioner of U.S. Customs 

25 and Border Protection, and 


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1 ‘‘(D) all other relevant Federal agencies. 

2 ‘‘(5) PUBLICATION.—The publication of any 

3 final rule required under this section shall include a 

4 statement from the Secretary explaining any devi5 ation from the recommendations submitted by the 

6 Board pursuant to paragraph (1). 

7 ‘‘(f) JUDICIAL REVIEW.— 

8 ‘‘(1) IN GENERAL.—The United States Court of 

9 Appeals for the District of Columbia Circuit shall 

10 have original and exclusive jurisdiction over any 

11 claim with respect to any final rule issued under this 

12 section. 

13 ‘‘(2) LIMITATION.—No final rule issued under 

14 this section shall be subject to judicial review un15 less— 

16 ‘‘(A) the claim is filed not later than 30 

17 days after the issuance of such rule, and 

18 ‘‘(B) the person filing such claim— 

19 ‘‘(i) is a citizen of the United States 

20 or a domestic producer, and 

21 ‘‘(ii)(I) demonstrates that— 

22 ‘‘(aa) application of such rule will 

23 result in the infliction of a direct and 

24 tangible harm to such person, and 


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1 ‘‘(bb) the rulemaking process was 

2 conducted in a manner that was in3 tended to directly harm such person, 

4 or 

5 ‘‘(II) demonstrates that such final 

6 rule— 

7 ‘‘(aa) altered the recommenda8 tions made by the Board, and 

9 ‘‘(bb) would limit the ability to 

10 attain the goals established under sec11 tion 4692(c)(2). 

12 ‘‘(3) ACCEPTABLE ACTION.—Notwithstanding 

13 any claim or cause of action filed with respect to any 

14 provision of this subchapter— 

15 ‘‘(A) the applicable date described in sec16 tion 4691(a)(2), 

17 ‘‘(B) the application of reassessment pur18 suant to subsection (c), and 

19 ‘‘(C) with respect to covered products in20 cluded pursuant to subsection (d) or (e) of sec21 tion 4695, the date for imposition of the fee 

22 under section 4691 to take effect (as deter23 mined under section 4695(f)), 

24 shall not be subject to judicial review and shall not 

25 be subject to delay or suspension.’’. 


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1 TITLE II—INTERNATIONAL 

2 PARTNERSHIP AGREEMENTS 

3 RELATING TO POLLUTION 

4 FEES 

5 SEC. 201. INTERNATIONAL PARTNERSHIP AGREEMENTS. 

6 (a) IN GENERAL.—The United States Trade Rep7 resentative, at the direction of the President, may— 

8 (1) engage in negotiations with countries to en9 courage the establishment and expansion of inter10 national partnership agreements, as provided in this 

11 title; 

12 (2) establish agreements with foreign countries 

13 with respect to proposals to enter into international 

14 partnership agreements; 

15 (3)(A) implement such an agreement in accord16 ance with subsection (e); or 

17 (B) submit a proposal to Congress under sub18 section (f) with respect to such an agreement and 

19 implement the agreement following the approval of 

20 Congress in a manner consistent with that sub21 section; and 

22 (4) perform the oversight and enforcement role 

23 necessary to uphold any such agreement. 

24 (b) CONSULTATION DURING NEGOTIATION FOR

25 INTERNATIONAL PARTNERSHIP AGREEMENTS.— 


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1 (1) IN GENERAL.—With respect to negotiations 

2 for an international partnership agreement under 

3 this title, the Trade Representative shall— 

4 (A) consult closely and on a timely basis 

5 with the appropriate congressional committees, 

6 keeping those committees fully apprised of the 

7 negotiations; and 

8 (B) provide to those committees, including 

9 staff with appropriate security clearances, ac10 cess to the text of any negotiating proposal or 

11 any other document presented by the United 

12 States or another party to the negotiations that 

13 presents concepts or considerations for the ne14 gotiations not later than 5 business days before 

15 the proposal or other document is formally 

16 brought up for consideration in the negotia17 tions. 

18 (2) DESIGNATION OF ADVISORS.—The chair19 person and ranking member of each of the appro20 priate congressional committees may each designate 

21 not more than 5 Members of Congress on their com22 mittee and not more than 4 individuals on the staff 

23 of that committee as official advisors to negotiations. 

24 (3) BRIEFING.— 


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1 (A) IN GENERAL.—The Trade Representa2 tive shall brief the appropriate congressional 

3 committees before and after every negotiation 

4 session in relation to an international partner5 ship agreement. 

6 (B) TIMING.—A briefing required by sub7 paragraph (A) following a negotiating session 

8 shall take place not later than 5 business days 

9 following the session. 

10 (c) REQUIREMENTS FOR INTERNATIONAL PARTNER11 SHIP AGREEMENTS.— 

12 (1) IN GENERAL.—An international partnership 

13 agreement may be entered into under this title on 

14 the basis of one covered product, multiple covered 

15 products, or all covered products. 

16 (2) PARTICIPATION.— 

17 (A) IN GENERAL.—Subject to the require18 ments under paragraph (3), the United States 

19 may enter into an international partnership 

20 agreement under this title with— 

21 (i) one country; 

22 (ii) multiple countries; or 

23 (iii) a group of countries participating 

24 in an international forum such as the 

25 Organisation for Economic Co-operation 


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1 and Development or the Group of Seven 

2 (G7). 

3 (B) EXPANSIONS OF EX POST CONGRES4 SIONAL-EXECUTIVE INTERNATIONAL PARTNER5 SHIP AGREEMENTS.—In the case of an inter6 national partnership agreement previously ap7 proved by Congress under subsection (f), addi8 tional countries may be added to the agreement 

9 without requiring further approval by Congress 

10 if the only changes to the agreement— 

11 (i) are the addition of a new country 

12 to the agreement; and 

13 (ii) do not require alterations to sub14 chapter E of the Internal Revenue Code of 

15 1986, as added by title I. 

16 (3) REQUIREMENTS.—An international partner17 ship agreement entered into under this title is re18 quired to provide for— 

19 (A) creation of compatible methods to pro20 mote pollution reduction through trade mecha21 nisms by assessing pollution intensity dif22 ferences between countries; 

23 (B) maintenance of the ability of a country 

24 that is a party to the agreement to determine 


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1 methods of pollution reduction within that 

2 country; 

3 (C) elimination of any fee or charge be4 tween countries that are parties to the agree5 ment in a manner compatible to the process de6 scribed in section 202; 

7 (D) elimination or reduction of other du8 ties, import fees, and trade barriers maintained 

9 by the country related to covered products; 

10 (E) compatible pollution monitoring, re11 porting, and verification methods that— 

12 (i) allow for similar methods to be 

13 used to calculate the pollution intensity of 

14 covered products and countries that are 

15 parties to the agreement, on the basis of 

16 the available information within each such 

17 country; 

18 (ii) allow for similar methods to be 

19 used to calculate the pollution intensity of 

20 covered products imported from countries 

21 that are not parties to the agreement; and 

22 (iii) allow for each country that is a 

23 party to the agreement to consistently vali24 date the monitoring and reporting informa25 tion of the other countries that are parties 


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1 to the agreement with respect to products 

2 covered by the agreement; 

3 (F) design characteristics compatible with 

4 subchapter E of the Internal Revenue Code, as 

5 added by title I; 

6 (G) design characteristics compatible with 

7 the provisions of this title; and 

8 (H) processes for how to add— 

9 (i) additional countries to the agree10 ment; and 

11 (ii) additional covered products to the 

12 agreement. 

13 (4) CONSIDERATION OF THIRD-PARTY PARTICI14 PATION.— 

15 (A) IN GENERAL.—An international part16 nership agreement entered into under this title 

17 may include direction for an entity that is not 

18 from a country that is a party to the agreement 

19 to— 

20 (i) serve as a repository of relevant 

21 pollution data from countries that are par22 ties to the agreement; 

23 (ii) provide validation of pollution in24 tensity calculations and other requirements 

25 under paragraph (3); and 


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1 (iii) adjudicate discrepancies with re2 spect to such data and requirements be3 tween countries that are parties to the 

4 agreement. 

5 (B) LIMITATIONS.— 

6 (i) ACCESS TO INFORMATION.—An 

7 international partnership agreement en8 tered into under this title is required to 

9 provide for each country that is a party to 

10 the agreement to maintain the ability to 

11 access and validate any pollution informa12 tion related to other countries that are 

13 parties to the agreement. 

14 (ii) SCOPE OF ADJUDICATION.— 

15 (I) IN GENERAL.—An entity de16 scribed in subparagraph (A) may ad17 judicate discrepancies between coun18 tries that are parties to an inter19 national partnership agreement en20 tered into under this title only to the 

21 extent that such discrepancies relate 

22 to requirements under the agreement. 

23 (II) IMPACT ON DOMESTIC

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1 mestic law of a country that is a party 

2 to an international partnership agree3 ment entered into under this title, in4 cluding subchapter E of the Internal 

5 Revenue Code of 1986, as added by 

6 title I. 

7 (d) TIMELINE.— 

8 (1) IN GENERAL.—The requirements described 

9 in subsection (c) with respect to an international 

10 partnership agreement are required to be achieved— 

11 (A) for high-income countries and upper12 middle income countries, not later than 3 years 

13 after entering into the agreement; and 

14 (B) for low-income countries and lower15 middle-income countries, not later than 5 years 

16 after entering into the agreement. 

17 (2) APPLICABILITY OF BENEFITS.— 

18 (A) IN GENERAL.—Countries described in 

19 paragraph (1)(A) shall not receive the treat20 ment described in section 4694 of the Internal 

21 Revenue Code of 1986, as added by title I, until 

22 the requirements under subsection (c) are met. 

23 (B) TERMINATION.—The United States 

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1 ments under subsection (c) are not met in the 

2 time described in paragraph (1). 

3 (e) EX ANTE CONGRESSIONAL-EXECUTIVE INTER4 NATIONAL PARTNERSHIP AGREEMENTS.— 

5 (1) IN GENERAL.—The United States Trade 

6 Representative may, at the direction of the Presi7 dent, enter into and carry out an international part8 nership agreement entered into under this title with9 out the approval of Congress if the agreement— 

10 (A) complies with the requirements under 

11 subsection (c); and 

12 (B) does not require any alteration of sub13 chapter E of the Internal Revenue Code of 

14 1986, as added by title I. 

15 (2) EFFECT.—An agreement described in para16 graph (1) that complies with the requirements under 

17 subsection (c) shall qualify as an international part18 nership agreement for purposes of section 4694 of 

19 the Internal Revenue Code of 1986, as added by 

20 title I. 

21 (3) PUBLICATION; CONGRESSIONAL REVIEW.— 

22 An agreement entered into under this subsection 

23 shall be— 

24 (A) published in the Federal Register; and 


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1 (B) treated as a final rule prepared by an 

2 agency, including with respect to review by 

3 Congress under chapter 8 of title 5, United 

4 States Code (commonly referred to as the 

5 ‘‘Congressional Review Act’’). 

6 (f) EX POST CONGRESSIONAL-EXECUTIVE INTER7 NATIONAL PARTNERSHIP AGREEMENTS.— 

8 (1) IN GENERAL.—An agreement shall be treat9 ed as a congressional-executive agreement and enter 

10 into force only if a joint resolution of approval is en11 acted in accordance to this subsection if any alter12 ation of subchapter E of the Internal Revenue Code 

13 of 1986, as added by title I, is required to imple14 ment the agreement. 

15 (2) SUBMISSION TO CONGRESS AND PUBLICA16 TION OF AGREEMENT.—The President shall— 

17 (A) post the text of an agreement de18 scribed in paragraph (1) on a publicly available 

19 website of the Office of the United States 

20 Trade Representative for not less than 5 busi21 ness days; and 

22 (B) submit to Congress on a day on which 

23 both Houses of Congress are in session a copy 

24 of the final legal text of the agreement, together 

25 with— 


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1 (i) an identification of any United 

2 States laws that may be inconsistent with 

3 the text; and 

4 (ii) a statement of any administrative 

5 action proposed to implement the agree6 ment. 

7 (3) JOINT RESOLUTIONS OF APPROVAL.— 

8 (A) DEFINITION.—In this paragraph, the 

9 term ‘‘joint resolution of approval’’ means only 

10 a joint resolution the matter after the resolving 

11 clause of which is as follows: ‘‘That Congress 

12 approves llll, submitted to Congress on 

13 lllll’’, with the first blank space being 

14 filled with the name of the applicable inter15 national partnership agreement entered into 

16 under this title and the second blank space 

17 being filled with the appropriate date. 

18 (B) INTRODUCTION.—A joint resolution 

19 approving an agreement described in paragraph 

20 (1) may be introduced in either House of Con21 gress by the chairperson or ranking member of 

22 one of the appropriate congressional commit23 tees. 

24 (C) PROCEDURES IN HOUSE AND SEN25 ATE.—Except as provided in this paragraph, 


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1 the provisions of subsections (d), (e), and (f) of 

2 section 152 of the Trade Act of 1974 (19 

3 U.S.C. 2192) shall apply with respect to a joint 

4 resolution of approval under this paragraph to 

5 the same extent and in the same manner as 

6 such provisions apply with respect to a joint 

7 resolution described in subsection (a) of that 

8 section. 

9 (D) REFERRAL.—A joint resolution of ap10 proval shall be referred exclusively to the appro11 priate congressional committees. 

12 (E) DISCHARGE.—If the committee of ei13 ther House to which a joint resolution of ap14 proval has been referred has not reported it by 

15 the close of the 40th day after its introduction 

16 (excluding any day described in section 154(b) 

17 of the Trade Act of 1974 (19 U.S.C. 2194(b))), 

18 that committee shall be automatically dis19 charged from further consideration of the joint 

20 resolution and the joint resolution shall be 

21 placed on the appropriate calendar. 

22 (F) CONSIDERATION.— 

23 (i) IN GENERAL.—It is not in order 

24 for— 


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1 (I) the Senate to consider any 

2 joint resolution of approval unless the 

3 joint resolution has been reported by 

4 the Committee on Finance or the 

5 committee has been discharged from 

6 consideration of the joint resolution 

7 under subparagraph (E); or 

8 (II) the House of Representatives 

9 to consider any joint resolution of ap10 proval unless it has been reported by 

11 the Committee on Ways and Means or 

12 the committee has been discharged 

13 from consideration of the joint resolu14 tion under subparagraph (E). 

15 (ii) MOTION TO PROCEED IN HOUSE

16 OF REPRESENTATIVES.—A motion in the 

17 House of Representatives to proceed to the 

18 consideration of a joint resolution of ap19 proval may be made only on the second 

20 legislative day after the calendar day on 

21 which the Member making the motion an22 nounces to the House the intention of the 

23 Member to do so. 


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1 (4) RULES OF SENATE AND HOUSE OF REP2 RESENTATIVES.—This subsection is enacted by Con3 gress— 

4 (A) as an exercise of the rulemaking power 

5 of the Senate and the House of Representa6 tives, respectively, and as such is deemed a part 

7 of the rules of each House, respectively, and su8 persedes other rules only to the extent that it 

9 is inconsistent with such other rules; and 

10 (B) with the full recognition of the con11 stitutional right of either House to change the 

12 rules (so far as relating to the procedures of 

13 that House) at any time, in the same manner, 

14 and to the same extent as any other rule of that 

15 House. 

16 (g) INCLUSION IN OTHER INTERNATIONAL AGREE17 MENTS.— 

18 (1) IN GENERAL.—The United States Trade 

19 Representative, at the direction of the President, 

20 may seek to include an expansion of an international 

21 partnership agreement in any other international 

22 agreement entered into or renegotiated on or after 

23 the date of the enactment of this Act, such as— 

24 (A) a free trade agreement; 


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1 (B) an international agreement relating to 

2 environmental protections, sustainable develop3 ment, or climate; or 

4 (C) a trade agreement involving inter5 national organizations such as the Organisation 

6 for Economic Co-operation and Development, 

7 the Group of Seven (G7), or any similar organi8 zation. 

9 (h) RESTRICTIONS ON NEGOTIATIONS.— 

10 (1) NONMARKET ECONOMY COUNTRIES.—The 

11 authority provided by this section does not include 

12 the authority to negotiate or enter into an agree13 ment with a nonmarket economy country if the 

14 country is— 

15 (A) an upper middle-income country; or 

16 (B) a high-income country. 

17 (2) DOMESTIC POLICIES.—The authority pro18 vided by this section does not include the authority 

19 to negotiate or enter into an agreement that would 

20 establish carbon taxes, fees, pricing, or other mecha21 nisms that impose additional costs on products pro22 duced by a domestic producer by the United States. 


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1 SEC. 202. APPLICATION OF FOREIGN POLLUTION FEE IN 

2 PARTNERSHIPS. 

3 (a) IN GENERAL.—In accordance with section 4694 

4 of the Internal Revenue Code of 1986, as added by title 

5 I, no fee shall be applied under section 4691 of such Code 

6 with respect to a covered product imported from a country 

7 that is a party to an international partnership agreement 

8 entered into under this title if production of the covered 

9 product has a pollution intensity difference that is less 

10 than or equal to 50 percent. 

11 (b) FAILURE TO MEET REQUIREMENTS.—If a cov12 ered product is produced in a country that is a party to 

13 an international partnership agreement entered into under 

14 this title but does not meet the requirement described in 

15 subsection (a), the fee applied under section 4691 of the 

16 Internal Revenue Code of 1986, as added by title I, with 

17 respect to the covered product shall be determined based 

18 on the applicable tier (as described in paragraph (2) of 

19 section 4692(e) of the Internal Revenue Code of 1986, as 

20 added by title I) associated with— 

21 (1) the pollution intensity difference; reduced 

22 by 

23 (2) 50 percentage points. 

24 (c) TREATMENT OF LOW-INCOME AND LOWER-MID25 DLE INCOME COUNTRIES.— 


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1 (1) IN GENERAL.—During the 5-year period 

2 following the entry into force of an international 

3 partnership agreement under this title between the 

4 United States and a low-income country or lower5 middle-income country— 

6 (A) the pollution intensity requirement de7 scribed in subsection (a) shall be considered to 

8 be met with respect to covered products pro9 duced in the country; and 

10 (B) no fee shall be applied to covered prod11 ucts imported from that country. 

12 (2) MODIFICATIONS TO REQUIREMENTS.— 

13 (A) IN GENERAL.—During the 10-year pe14 riod beginning after the completion of the 5- 

15 year period described in paragraph (1), the pol16 lution intensity requirement described in sub17 section (a) shall be considered to be met with 

18 respect to a covered product produced in a 

19 country described in paragraph (1) if new ca20 pacity in that country for the production of the 

21 covered product developed during the 10-year 

22 period described in paragraph (1) is not more 

23 than 50 percent more pollution intense than the 

24 baseline pollution intensity at the time of the 


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1 entry into force of the international partnership 

2 agreement. 

3 (B) FUTURE DEVELOPMENT.—For the 10- 

4 year period beginning after the completion of 

5 the 10-year period described in subparagraph 

6 (A), and each 10-year period thereafter, the 

7 pollution intensity requirement described in 

8 subsection (a) shall be considered to be met 

9 with respect to a covered product produced in 

10 a country described in paragraph (1) if new ca11 pacity in that country for the production of the 

12 covered product developed during the preceding 

13 10-year period is not more than 25 percent 

14 more pollution intense than the baseline pollu15 tion intensity at the beginning of such pre16 ceding 10-year period. 

17 (3) APPLICATION OF FEE.—If the requirements 

18 described in paragraph (1) or (2), as applicable, are 

19 not met with respect to a covered product, the fee 

20 specified in subsection (b) shall apply. 

21 (d) TREATMENT OF CIRCUMVENTION.—Nothing in 

22 this section shall supersede section 4693(g) of the Internal 

23 Revenue Code of 1986, as added by title I, with respect 

24 to potential circumvention of the fee assessed under sec25 tion 4691 of such Code if— 


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1 (1) a determination is made under such section 

2 4693(g) with respect to a producer; and 

3 (2) the producer is owned, operated, or financed 

4 in or by a country that is not a party to an inter5 national partnership agreement entered into under 

6 this title. 

7 SEC. 203. SUPPORT FOR PARTICIPATION OF LOW-INCOME 

8 AND LOWER-MIDDLE-INCOME COUNTRIES IN 

9 INTERNATIONAL PARTNERSHIP AGREE10 MENTS. 

11 (a) IN GENERAL.—The United States Trade Rep12 resentative, at the direction of the President, may include, 

13 in an international partnership agreement entered into 

14 under this title with a low-income country or a lower-mid15 dle-income country, provisions providing for— 

16 (1) the provision of treatment described in sec17 tion 202(c) to that country; 

18 (2) the extension of untied or tied aid through 

19 a United States export, development, or trade agen20 cy for energy or manufacturing technologies and 

21 projects; 

22 (3) lower initial requirements relating to pollu23 tion data monitoring and alternative methods to 

24 more accurately project and model pollution under 

25 the agreement; 


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1 (4) support for expansion of monitoring and re2 porting of pollution; and 

3 (5) technical assistance to ensure full compli4 ance with the terms of the agreement. 

5 (b) BENCHMARKS AND REQUIREMENTS.— 

6 (1) IN GENERAL.—The United States Trade 

7 Representative shall establish benchmarks or re8 quirements to assess the progress of a country de9 scribed in subsection (a) in fully implementing the 

10 terms of the international partnership agreement en11 tered into under this title. 

12 (2) BENCHMARKS.—The benchmarks and re13 quirements established under paragraph (1) with re14 spect to a country shall include— 

15 (A) improving methods of monitoring, re16 porting, and verifying pollution levels; 

17 (B) if, after the entry into force of the 

18 international partnership agreement, new man19 ufacturing or production capacity for a covered 

20 product is built in the country but that capacity 

21 is owned or operated, or the majority of the fi22 nancing for that capacity is provided, by an en23 tity associated with a country that is not a 

24 party to an international partnership agree25 ment, treating the new capacity— 


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1 (i) at the pollution intensity of the 

2 country that is not a party to an inter3 national partnership agreement if the pol4 lution intensity for the covered product 

5 produced in that country is greater than 

6 the pollution intensity of the covered prod7 uct produced in the country that is a party 

8 to the international partnership agreement; 

9 (ii) as not eligible for the treatment of 

10 a country that is a party to an inter11 national partnership agreement described 

12 in section 202; and 

13 (iii) in accordance to the requirements 

14 of section 4694 of the Internal Revenue 

15 Code of 1986, as added by title I; 

16 (C) if, after the entry into force of the 

17 international partnership agreement, the owner18 ship, a stake of ownership, or operation of man19 ufacturing or production capacity for a covered 

20 product that is in operation on the date of 

21 entry into force is transferred to an entity in a 

22 country that is not a party to an international 

23 partnership agreement, treating such capac24 ity— 


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1 (i) at the pollution intensity of the 

2 country that is not a party to an inter3 national partnership agreement if the pol4 lution intensity for the covered product 

5 produced in that country is greater than 

6 the pollution intensity of the covered prod7 uct produced in the country that is a party 

8 to the international partnership agreement; 

9 (ii) as not eligible for the treatment of 

10 a country that is a party to an inter11 national partnership agreement described 

12 in section 202; and 

13 (iii) in accordance to the requirements 

14 of section 4694 of the Internal Revenue 

15 Code of 1986, as added by title I; and 

16 (D) in the case of an international partner17 ship agreement with a nonmarket economy 

18 country that is a low-income country or a lower19 middle-income country, making progress in de20 veloping a market economy. 

21 (c) TERMINATION.—The United States shall main22 tain the authority to terminate the application of the pro23 visions described in subsection (a) to a country if the coun24 try does not meet the benchmarks and requirements under 

25 subsection (b). 


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1 (d) INCLUSION OF OTHER INTERNATIONAL PART2 NERS.—To the maximum extent practicable, the United 

3 States shall seek to include additional high-income coun4 tries and upper-middle-income countries in international 

5 partnership agreements entered into under this title with 

6 low-income countries or lower-middle-income countries. 

7 SEC. 204. FACILITY-SPECIFIC AGREEMENTS RELATING TO 

8 POLLUTION FEES. 

9 (a) AUTHORITY TO NEGOTIATE FACILITY-SPECIFIC

10 AGREEMENTS.—The United States Trade Representative 

11 may negotiate, in coordination with the Secretary of the 

12 Treasury and the Administrator of the Environmental 

13 Protection Agency, an agreement with a facility located 

14 in a foreign country that allows products produced at the 

15 facility to be treated at a pollution intensity specific to 

16 the facility. 

17 (b) REQUIREMENTS.—To be eligible for an agree18 ment under subsection (a), a facility is required to— 

19 (1) consistently operate according to the stand20 ards a United States facility is statutorily required 

21 to abide by, for existing operations and any future 

22 expansion of operations, including such standards 

23 set forth under— 

24 (A) the Clean Air Act (42 U.S.C. 7401 et 

25 seq.); 


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1 (B) the Federal Water Pollution Control 

2 Act (33 U.S.C. 1251 et seq.) (commonly known 

3 as the ‘‘Clean Water Act’’); 

4 (C) the Safe Drinking Water Act (42 

5 U.S.C. 300f et seq.); and 

6 (D) the National Environmental Policy Act 

7 of 1969 (42 U.S.C. 4321 et seq.); 

8 (2) deploy pollution monitoring equipment able 

9 to report in real time the levels of pollution emitted 

10 by the facility; 

11 (3) provide real-time access to physical pollu12 tion monitoring by United States officials or their 

13 designees; 

14 (4) allow for spot inspections by United States 

15 officials or their designees to ensure compliance with 

16 the requirements of the agreement; 

17 (5) if the pollution intensity of the facility is 

18 higher than the pollution intensity of the United 

19 States or the least pollution intense foreign country 

20 that is a party to an international partnership agree21 ment entered into under this title with the United 

22 States— 

23 (A) provide actionable benchmarks to de24 crease the pollution intensity of the facility so 

25 that pollution intensity is equal to or less than 


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1 the pollution intensity of the United States or 

2 such other country not later than 10 years after 

3 entering into an agreement under subsection 

4 (a); 

5 (B) achieve the benchmarks described in 

6 subparagraph (A) during the 10-year period de7 scribed in that subparagraph; 

8 (C) provide actionable benchmarks to de9 crease, by not later than 20 years after entering 

10 into an agreement under subsection (a), the 

11 pollution intensity of the facility to an intensity 

12 not less than 50 percent lower than the pollu13 tion intensity of the United States at the time 

14 of entry into the agreement; 

15 (D) achieve the benchmarks described in 

16 subparagraph (C) during the 20-year period de17 scribed in that subparagraph; and 

18 (E) ensure that any pollution reduction 

19 technology used in achieving the benchmarks 

20 described in subparagraph (A) or (C) contains 

21 not less than 50 percent of components of 

22 United States origin; 

23 (6) account for any upstream pollution— 

24 (A) at the level associated with the pollu25 tion intensity of the country in which the conVerDate Sep 11 2014 00:43 Nov 04, 2023 Jkt 049200 PO 00000 Frm 00089 Fmt 6652 Sfmt 6201 E:\BILLS\S3198.IS S3198

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1 tributing part or transforming part is produced, 

2 unless the part is covered by an agreement en3 tered into under subsection (a); or 

4 (B) if determined appropriate by the 

5 United States Trade Representative and pro6 vided for in the agreement, based on an appli7 cable standard of the International Organiza8 tion for Standardization; 

9 (7) identify the covered entity with respect to 

10 covered products produced at the facility if the cov11 ered entity is not the owner of the facility; and 

12 (8) ensure the agreement may be terminated at 

13 the sole discretion of the United States if the facility 

14 is not in compliance with any requirement under this 

15 subsection. 

16 (c) CONSULTATION WITH CONGRESS.—The Trade 

17 Representative may not conclude an agreement under sub18 section (a) with a facility unless— 

19 (1) the Trade Representative— 

20 (A) informs the appropriate congressional 

21 committees of the intention of the Trade Rep22 resentative to pursue negotiations with the fa23 cility not less than 2 business days after com24 mencing negotiations; 


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1 (B) shares the text of the proposed agree2 ment with the appropriate congressional com3 mittees for not less than the lesser of— 

4 (i) 12 days on which both Houses of 

5 Congress are in session; or 

6 (ii) 60 calendar days; and 

7 (C) responds to all inquiries regarding the 

8 terms of the agreement from the chairperson or 

9 ranking member of one of the appropriate con10 gressional committees before concluding the 

11 agreement; and 

12 (2) a resolution of disapproval is not enacted 

13 during the period described in paragraph (1)(B). 

14 (d) TREATMENT OF THE AGREEMENT.— 

15 (1) IN GENERAL.—Any agreement entered into 

16 under this section with a facility shall allow a prod17 uct produced by the facility and imported into the 

18 United States to be assigned to the tier (as estab19 lished under section 4692(b) of the Internal Revenue 

20 Code of 1986, as added by title I) aligned with the 

21 pollution intensity difference of a product produced 

22 by the facility and the baseline pollution intensity. 

23 (2) RESTRICTIONS.—Under no circumstances 

24 may an agreement entered into under this section 


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1 require the United States to alter the implementa2 tion of this Act. 

3 (e) INELIGIBILITY OF STATE-OWNED FACILITIES IN

4 NONMARKET ECONOMY COUNTRIES.—A facility in a non5 market economy country is not eligible for an agreement 

6 under this section if the facility— 

7 (1) is owned, partially owned, or operated by 

8 the government of the country or an entity owned or 

9 controlled by that government; or 

10 (2) has received financing, including in the 

11 form of a tax credit or a limit on tax liability, to op12 erate the facility by the government of the country 

13 or an entity owned or controlled by that government. 

14 (f) TRANSPARENCY.—The Trade Representative shall 

15 promptly publish a description of the proposed agreement 

16 under this section in the Federal Register. 

17 SEC. 205. DEFINITIONS. 

18 In this title, the definitions set forth in section 4697 

19 of the Internal Revenue Code of 1986, as added by title 

20 I, apply. 

Æ 


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