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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 804 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 804

   To amend the Internal Revenue Code of 1986 to reduce emissions of 
carbon dioxide by imposing a tax on certain fuels based on their carbon 
                                content.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            February 3, 1993

  Mr. Stark introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL

 
   To amend the Internal Revenue Code of 1986 to reduce emissions of 
carbon dioxide by imposing a tax on certain fuels based on their carbon 
                                content.

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

SECTION 1. IMPOSITION OF CARBON TAX ON PRIMARY FOSSIL FUELS.

    (a) General Rule.--Chapter 38 of the Internal Revenue Code of 1986 
(relating to environmental taxes) is amended by adding at the end 
thereof the following new subchapter:

           ``Subchapter E--Carbon Tax on Primary Fossil Fuels

``Sec. 4691. Tax on coal.
``Sec. 4692. Tax on petroleum.
``Sec. 4693. Tax on natural gas.
``Sec. 4694. Inflation adjustments.

``SEC. 4691. TAX ON COAL.

    ``(a) General Rule.--There is hereby imposed a tax at the rate 
specified in subsection (b) on coal sold by the producer or importer 
thereof.
    ``(b) Rate of Tax.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        rate of the tax imposed by subsection (a) shall be $18 per ton.
            ``(2) Phase-in.--
          
                                                    The rate of the tax
          
                                                  imposed by subsection
        Effective during
                                                  (a) shall be the fol-
        calendar year:
                                                 lowing amount per ton:
                1994.................................             $3.60
                1995.................................             $7.20
                1996.................................            $10.80
                1997.................................            $14.40
    ``(c) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Coal to include lignite.--The term `coal' includes 
        lignite.
            ``(2) Ton.--The term `ton' means 2,000 pounds.
            ``(3) Use treated as sale.--If the producer or importer of 
        any coal uses such coal, such producer or importer shall be 
        liable for tax under this section in the same manner as if such 
        coal were sold by such producer or importer.

``SEC. 4692. TAX ON PETROLEUM.

    ``(a) General Rule.--There is hereby imposed a tax at the rate 
specified in subsection (c) on any petroleum with respect to which 
there is a taxable event.
    ``(b) Taxable Event.--For purposes of this section, the term 
`taxable event' means any event which would result in tax being imposed 
under section 4611 if--
            ``(1) such section were applied without regard to 
        subsections (b)(2), (e), and (f) thereof, and
            ``(2) section 4612(b) were applied by substituting `section 
        4692' for `section 4611'.
    ``(c) Amount of Tax.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        rate of the tax imposed by subsection (a) shall be $3.90 per 
        barrel.
            ``(2) Phase-in.--
          
                                                    The rate of the tax
          
                                                  imposed by subsection
        Effective during
                                                  (a) shall be the fol-
        calendar year:
                                              lowing amount per barrel:
                1994.................................              $.78
                1995.................................             $1.56
                1996.................................             $2.34
                1997.................................             $3.12
    ``(d) Person Liable for Tax.--The person required to pay the tax 
imposed by this section on any petroleum shall be determined under the 
principles of section 4611(d).
    ``(e) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Petroleum.--The term `petroleum' means any petroleum 
        product including crude oil.
            ``(2) Barrel.--The term `barrel' means 42 United States 
        gallons.
            ``(3) Fraction of barrel.--In the case of a fraction of a 
        barrel, the tax imposed by this section shall be the same 
        fraction of the amount of such tax imposed on a whole barrel.
            ``(4) Certain rules made applicable.--Rules similar to the 
        rules of subsections (c) and (e) of section 4612 shall apply to 
        the tax imposed by this section.

``SEC. 4693. TAX ON NATURAL GAS.

    ``(a) General Rule.--There is hereby imposed a tax at the rate 
specified in subsection (c) on--
            ``(1) natural gas received at a United States pipeline 
        facility, and
            ``(2) natural gas entered into the United States for 
        consumption, use, or warehousing.
    ``(b) Tax on Certain Uses, Etc.--
            ``(1) In general.--If--
                    ``(A) any domestic natural gas is used in or 
                exported from the United States, and
                    ``(B) before such use or exportation, no tax was 
                imposed on such natural gas under subsection (a),
        then a tax at the rate specified in subsection (c) is hereby 
        imposed on such natural gas.
            ``(2) Exception for certain uses on premises where 
        produced.--Paragraph (1) shall not apply to any use of natural 
        gas for extracting oil or natural gas on the premises where 
        such natural gas was produced. The preceding sentence shall not 
        apply to any use involving the combustion of the natural gas.
    ``(c) Rate of Tax.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        rate of the taxes imposed by this section shall be 48 cents per 
        MCF.
            ``(2) Phase-in.--
          
                                                  The rate of the taxes
          
                                              imposed by subsection (a)
        Effective during
                                                      shall be the fol-
        calendar year
                                                  lowing amount per MCF
                1994.................................             $.096
                1995.................................             $.192
                1996.................................             $.288
                1997.................................             $.384
    ``(d) Persons Liable for Tax.--
            ``(1) Receipt at pipeline.--The tax imposed by subsection 
        (a)(1) shall be paid by the operator of the United States 
        pipeline facility.
            ``(2) Importation.--The tax imposed by subsection (a)(2) 
        shall be paid by the person entering the natural gas for 
        consumption, use, or warehousing.
            ``(3) Tax on use or exports.--The tax imposed by subsection 
        (b) shall be paid by the person using or exporting the natural 
        gas, as the case may be.
    ``(e) Definitions.--For purposes of this section--
            ``(1) Natural gas.--The term `natural gas' includes any 
        natural gas liquid which is not treated as petroleum for 
        purposes of the tax imposed by section 4692.
            ``(2) Domestic natural gas.--The term `domestic natural 
        gas' means any natural gas produced from a well located in the 
        United States.
            ``(3) United states pipeline facility.--The term `United 
        States pipeline facility' means any pipeline in the United 
        States used for purposes of transporting natural gas (other 
        than a pipeline which is part of a gathering system).
            ``(4) MCF.--The term `MCF' means 1,000 cubic feet.
            ``(5) Other definitions.--The terms `United States' and 
        `premises' have the respective meanings given such terms by 
        section 4612(a).
            ``(6) Fractional part of mcf.--In the case of a fraction of 
        an MCF, the tax imposed by this section shall be the same 
        fraction of the amount of such tax imposed on a whole MCF.
            ``(7) Certain rules made applicable.--Rules similar to the 
        rules of subsections (b), (c), and (e) of section 4612 shall 
        apply to the tax imposed by this section.

``SEC. 4694. INFLATION ADJUSTMENTS.

    ``(a) General Rule.--Each rate of tax which would otherwise be in 
effect under this subchapter during any calendar year after 1994 shall 
be increased by the percentage (if any) by which--
            ``(1) the CPI for the preceding calendar year (as defined 
        in section 1(f)(4)), exceeds
            ``(2) the CPI for calendar year 1993 (as so defined).
    ``(b) Rounding.--Any increase under subsection (a) shall be 
rounded--
            ``(1) to the nearest multiple of 10 cents in the case of a 
        rate in effect under section 4691,
            ``(2) to the nearest multiple of 1 cent in the case of a 
        rate in effect under section 4692, and
            ``(3) to the nearest multiple of 1/10 cent in the case of a 
        rate in effect under section 4693.''
    (b) Clerical Amendment.--The table of subchapters for chapter 38 of 
such Code is amended by adding at the end thereof the following new 
item:

                              ``Subchapter E. Carbon tax on primary 
                                        fossil fuels.''
    (c) Effective Date.--The amendments made by this section shall take 
effect on January 1, 1994.

                                 <all>
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