II 

115TH CONGRESS 

2D SESSION S. 2368 

To amend the Internal Revenue Code of 1986 to provide for carbon dioxide 

and other greenhouse gas emission fees, reduce the rate of the corporate 

income tax, provide tax credits to workers, deliver additional benefits 

to retired and disabled Americans, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 5, 2018 

Mr. WHITEHOUSE (for himself and Mr. SCHATZ) 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 provide 

for carbon dioxide and other greenhouse gas emission 

fees, reduce the rate of the corporate income tax, provide 

tax credits to workers, deliver additional benefits to retired and disabled Americans, 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 ‘‘American Opportunity 

5 Carbon Fee Act of 2018’’. 


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1 TITLE I—CARBON DIOXIDE AND 

2 OTHER GREENHOUSE GAS 

3 EMISSION FEES 

4 SEC. 101. CARBON DIOXIDE AND OTHER GREENHOUSE GAS 

5 EMISSION FEES. 

6 (a) IN GENERAL.—Chapter 38 of the Internal Rev7 enue Code of 1986 is amended by adding at the end there8 of the following new subchapter: 

9 ‘‘Subchapter E—Carbon Dioxide and Other 

10 Greenhouse Gas Emission Fees 

‘‘Sec. 4691. Fee for carbon dioxide emissions. 

‘‘Sec. 4692. Fee on fluorinated greenhouse gases. 

‘‘Sec. 4693. Fee for other greenhouse gas emissions. 

‘‘Sec. 4694. Associated emissions. 

‘‘Sec. 4695. Border adjustments for energy-intensive manufactured goods. 

‘‘Sec. 4696. Definitions and other rules. 

11 ‘‘SEC. 4691. FEE FOR CARBON DIOXIDE EMISSIONS. 

12 ‘‘(a) IN GENERAL.— 

13 ‘‘(1) FOSSIL FUEL PRODUCTS PRODUCING CAR14 BON EMISSIONS.— 

15 ‘‘(A) IN GENERAL.—There is hereby im16 posed a fee in an amount equal to the applica17 ble amount at the rate specified in subpara18 graph (B) on— 

19 ‘‘(i) coal— 

20 ‘‘(I) removed from any mine in 

21 the United States, or 


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1 ‘‘(II) entered into the United 

2 States for consumption, use, or 

3 warehousing, 

4 ‘‘(ii) petroleum products— 

5 ‘‘(I) removed from any refinery, 

6 ‘‘(II) removed from any terminal, 

7 or 

8 ‘‘(III) entered into the United 

9 States for consumption, use, or 

10 warehousing, and 

11 ‘‘(iii) natural gas— 

12 ‘‘(I) entered into any processor, 

13 or 

14 ‘‘(II) entered into the United 

15 States for consumption, use, or 

16 warehousing. 

17 ‘‘(B) RATE.—The rate specified in this 

18 subparagraph with respect to any product de19 scribed in subparagraph (A) is an amount equal 

20 to the applicable amount per ton of carbon di21 oxide that would be emitted through the com22 bustion of such product (as determined by the 

23 Secretary, in consultation with the Secretary of 

24 Energy and the Administrator of the Environ25 mental Protection Agency). 


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1 ‘‘(2) EMISSIONS ATTRIBUTABLE TO OTHER

2 SUBSTANCES.—There is hereby imposed a fee in an 

3 amount equal to the applicable amount per ton of 

4 carbon dioxide emitted— 

5 ‘‘(A) from any facility which— 

6 ‘‘(i) is required to report emissions, or 

7 to which emissions are attributed, under 

8 subpart A of part 98 of title 40, Code of 

9 Federal Regulations, as in effect on the 

10 date of the enactment of the American Op11 portunity Carbon Fee Act of 2018, and 

12 ‘‘(ii) emitted not less than 25,000 

13 tons of carbon dioxide emissions during the 

14 previous calendar year, and 

15 ‘‘(B) by reason of the combustion or proc16 essing of any product other than coal, petro17 leum products, and natural gas. 

18 ‘‘(b) APPLICABLE AMOUNT.— 

19 ‘‘(1) IN GENERAL.—For purposes of this part, 

20 the applicable amount is— 

21 ‘‘(A) for calendar year 2019, $50, 

22 ‘‘(B) for any calendar year following a year 

23 which is not a national emissions target attain24 ment year, the sum of— 


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1 ‘‘(i) the product of the amount in ef2 fect under this subparagraph for the pre3 ceding calendar year and 102 percent, and 

4 ‘‘(ii) the inflation adjustment amount 

5 determined under paragraph (2), and 

6 ‘‘(C) for any calendar year following a year 

7 which is a national emissions target attainment 

8 year, the sum of— 

9 ‘‘(i) the amount in effect under this 

10 subparagraph for the preceding calendar 

11 year, and 

12 ‘‘(ii) the inflation adjustment amount 

13 determined under paragraph (2). 

14 ‘‘(2) INFLATION ADJUSTMENT AMOUNT.— 

15 ‘‘(A) IN GENERAL.—The inflation adjust16 ment amount for any calendar year shall be an 

17 amount (not less than zero) equal to the prod18 uct of— 

19 ‘‘(i) the amount determined under 

20 paragraph (1)(B)(i) or (1)(C)(i), as appli21 cable, for such year, and 

22 ‘‘(ii) the percentage by which the CPI 

23 for the preceding calendar year exceeds the 

24 CPI for the second preceding calendar 

25 year. 


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1 ‘‘(B) CPI.—Rules similar to the rules of 

2 paragraphs (4) and (5) of section 1(f) shall 

3 apply for purposes of this paragraph. 

4 ‘‘(3) ROUNDING.—The applicable amount under 

5 this subsection shall be rounded up to the next whole 

6 dollar amount. 

7 ‘‘(4) NATIONAL EMISSIONS TARGET ATTAIN8 MENT YEAR.—For purposes of paragraph (1), a cal9 endar year is a national emissions target attainment 

10 year if the level of greenhouse gas emissions in the 

11 United States for the calendar year does not exceed 

12 20 percent of the level of greenhouse gas emissions 

13 in the United States for calendar year 2005 as de14 termined by the Secretary in consultation with the 

15 Administrator of the Environmental Protection 

16 Agency. 

17 ‘‘(c) REFUNDS FOR CAPTURING CARBON DIOXIDE

18 AND PRODUCTION OF CERTAIN GOODS.— 

19 ‘‘(1) CARBON DIOXIDE CAPTURE, UTILIZATION, 

20 AND STORAGE.— 

21 ‘‘(A) IN GENERAL.—In the case of a per22 son who— 

23 ‘‘(i) uses any coal, petroleum product, 

24 or natural gas for which a fee has been im25 posed under subsection (a)(1) in a manner 


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1 which results in the emission of qualified 

2 carbon dioxide, 

3 ‘‘(ii) captures the resulting emitted 

4 qualified carbon dioxide at a qualified facil5 ity, and 

6 ‘‘(iii)(I) disposes of such qualified car7 bon dioxide in secure storage, or 

8 ‘‘(II) utilizes such qualified carbon di9 oxide in a manner provided in subpara10 graph (D), 

11 there shall be allowed a refund, in the same 

12 manner as if it were an overpayment of the fee 

13 imposed by such subsection, to such person in 

14 the amount determined under subparagraph 

15 (B). 

16 ‘‘(B) AMOUNT OF REFUND.—The amount 

17 of the refund under this subparagraph is an 

18 amount equal to the product of— 

19 ‘‘(i) the applicable amount under sub20 section (b) for the calendar year in which 

21 such qualified carbon dioxide was captured 

22 and disposed or utilized, and 

23 ‘‘(ii) the adjusted tons of qualified 

24 carbon dioxide captured and disposed or 

25 utilized. 


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1 ‘‘(C) ADJUSTED TOTAL TONS.—For pur2 poses of subparagraph (B), the adjusted tons of 

3 qualified carbon dioxide captured and disposed 

4 or utilized shall be the total tons of qualified 

5 carbon dioxide captured and disposed or utilized 

6 reduced by the amount of any anticipated leak7 age of carbon dioxide into the atmosphere due 

8 to imperfect storage technology or otherwise, as 

9 determined by the Secretary in consultation 

10 with the Administrator of the Environmental 

11 Protection Agency. 

12 ‘‘(D) REQUIREMENTS.— 

13 ‘‘(i) IN GENERAL.—Any refund under 

14 subparagraph (A) shall apply only with re15 spect to qualified carbon dioxide that has 

16 been captured and disposed or utilized 

17 within the United States. 

18 ‘‘(ii) DISPOSAL AND SECURE STOR19 AGE.— 

20 ‘‘(I) SECURE STORAGE.—The 

21 Secretary, in consultation with the 

22 Administrator of the Environmental 

23 Protection Agency and the Secretary 

24 of Energy, shall establish regulations 

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1 tion 45Q(d)(2) for determining ade2 quate security measures for the secure 

3 storage of qualified carbon dioxide for 

4 purposes of subparagraph (A)(iii)(I) 

5 such that the carbon dioxide does not 

6 escape into the atmosphere. Such reg7 ulations shall ensure the stored car8 bon dioxide may not be sold, trans9 ferred, or exported for any purpose 

10 that results in the emission of carbon 

11 dioxide. 

12 ‘‘(II) RECAPTURE.—The Sec13 retary shall, by regulations, provide 

14 for recapturing the benefit of any re15 fund made under subparagraph (A) 

16 with respect to any qualified carbon 

17 dioxide which is disposed in secure 

18 storage and ceases to be stored in a 

19 manner consistent with the require20 ments of this section. 

21 ‘‘(iii) UTILIZATION.—The Secretary, 

22 in consultation with the Administrator of 

23 the Environmental Protection Agency, 

24 shall establish regulations providing for the 

25 appropriate methods and manners for the 


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1 utilization of qualified carbon dioxide 

2 under subparagraph (A)(iii)(II), including 

3 the utilization of captured carbon dioxide 

4 for enhanced oil or gas recovery and the 

5 production of substances such as plastics, 

6 biofuels, algae, and chemicals. Such regula7 tions shall provide for the minimization of 

8 the escape or further emission of the quali9 fied carbon dioxide into the atmosphere. 

10 ‘‘(E) QUALIFIED CARBON DIOXIDE; QUALI11 FIED FACILITY.—For purposes of this para12 graph— 

13 ‘‘(i) QUALIFIED CARBON DIOXIDE.— 

14 The term ‘qualified carbon dioxide’ has the 

15 same meaning given that term under sec16 tion 45Q(b). 

17 ‘‘(ii) QUALIFIED FACILITY.—The term 

18 ‘qualified facility’ has the same meaning 

19 given that term under section 45Q(c), de20 termined without regard to paragraph (3) 

21 thereof. 

22 ‘‘(2) MANUFACTURE OF CERTAIN GOODS.—In 

23 the case of a person who uses any coal, petroleum 

24 product, or natural gas for which a fee has been im25 posed under subsection (a)(1) as an input for a 


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1 manufactured good that encapsulates carbon dioxide 

2 in a manner such that it does not result in the direct 

3 emission of carbon dioxide in the manufacturing or 

4 subsequent use of such good, a refund shall be al5 lowed to such person in the same manner as if it 

6 were an overpayment of the fee imposed by such sec7 tion in an amount that is equal to the product of— 

8 ‘‘(A) an amount equal to the applicable 

9 amount under subsection (b) for the calendar 

10 year in which such product was used, and 

11 ‘‘(B) the total tons of carbon dioxide that 

12 would have otherwise been emitted through the 

13 combustion of such product. 

14 ‘‘(3) EXPORTS.—In the case of a person who 

15 exports any coal, petroleum product, or natural gas 

16 from the United States for which a fee has been im17 posed under subsection (a)(1), a refund shall be al18 lowed to such person in the same manner as if it 

19 were an overpayment of the fee imposed by such sec20 tion in an amount that is equal to the fee previously 

21 imposed under such subsection with respect to such 

22 product (determined without regard to any increase 

23 under section 4694). 


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1 ‘‘SEC. 4692. FEE ON FLUORINATED GREENHOUSE GASES. 

2 ‘‘(a) IN GENERAL.—There is hereby imposed a fee 

3 in an amount determined under subsection (b) on 

4 fluorinated greenhouse gases— 

5 ‘‘(1) produced at a fluorinated greenhouse gas 

6 production facility, 

7 ‘‘(2) imported into the United States by a 

8 fluorinated greenhouse gas importer, or 

9 ‘‘(3) emitted by an industrial fluorinated green10 house gas facility. 

11 ‘‘(b) AMOUNT OF FEE.—The amount of fee imposed 

12 by subsection (a) shall be equal to the applicable percent13 age (as defined in subsection (c)(5)) of the applicable 

14 amount determined under section 4691(b) per ton of car15 bon dioxide equivalent produced or imported. 

16 ‘‘(c) DEFINITIONS.—For purposes of this section— 

17 ‘‘(1) FLUORINATED GREENHOUSE GASES.—The 

18 term ‘fluorinated greenhouse gases’ means sulfur 

19 hexafluoride (SF6), nitrogen trifluoride (NF3), any 

20 hydrofluorocarbon, any perfluorocarbon, any fully 

21 fluorinated linear, branched or cyclic alkane, ether, 

22 tertiary amine or aminoether, any 

23 perfluoropolyether, any hydrofluoropolyether, and 

24 any other fluorocarbon except for substances with 

25 vapor pressures of less than 1 mm of Hg absolute 

26 at 25 degrees Celsius. 


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1 ‘‘(2) FLUORINATED GREENHOUSE GAS PRODUC2 TION FACILITY.—The term ‘fluorinated greenhouse 

3 gas production facility’ means any facility which is 

4 included under the industrial gas supplier source 

5 category under subpart OO of part 98 of title 40, 

6 Code of Federal Regulations, as in effect on the date 

7 of the enactment of the American Opportunity Car8 bon Fee Act of 2018. 

9 ‘‘(3) FLUORINATED GREENHOUSE GAS IM10 PORTER.—The term ‘fluorinated greenhouse gas im11 porter’ means any importer who is included under— 

12 ‘‘(A) the industrial gas supplier source cat13 egory under subpart OO of part 98 of title 40, 

14 Code of Regulations, as in effect on the date of 

15 the enactment of the American Opportunity 

16 Carbon Fee Act of 2018, or 

17 ‘‘(B) the source category under subpart 

18 QQ of such part (as so in effect). 

19 ‘‘(4) INDUSTRIAL FLUORINATED GREENHOUSE

20 GAS FACILITY.—The term ‘industrial greenhouse gas 

21 facility’ means any facility which— 

22 ‘‘(A) is included under— 

23 ‘‘(i) the aluminum production source 

24 category under subpart F of part 98 of 

25 title 40, Code of Regulations, as in effect 


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1 on the date of the enactment of the Amer2 ican Opportunity Carbon Fee Act of 2018, 

3 ‘‘(ii) the HCFC–22 production and 

4 HFC–23 destruction source category under 

5 subpart O of such part (as so in effect), or 

6 ‘‘(iii) the fluorinated gas production 

7 source category under subpart L of such 

8 part (as so in effect), and 

9 ‘‘(B) emitted during the previous calendar 

10 year fluorinated greenhouse gases with a total 

11 carbon dioxide equivalent of not less than 

12 25,000 tons. 

13 ‘‘(5) APPLICABLE PERCENTAGE.—The term 

14 ‘applicable percentage’ means the percentage deter15 mined in accordance with the following table: 

‘‘In the case of any taxable year beginning 

in calendar year: 

The applicable 

percentage is: 

2019, 2020, or 2021 ............................................................. 10 percent

2022 ...................................................................................... 20 percent

2023 ...................................................................................... 30 percent

2024 ...................................................................................... 40 percent

2025 ...................................................................................... 50 percent

2026 ...................................................................................... 60 percent

2027 ...................................................................................... 70 percent

2028 ...................................................................................... 80 percent

2029 ...................................................................................... 90 percent

2030 or thereafter ................................................................ 100 percent. 

16 ‘‘(d) EXEMPTION FOR EXPORTS.—For purposes of 

17 determining fluorinated greenhouse gases produced or im18 ported under subsection (a), there shall not be taken into 


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1 account any fluorinated greenhouse gases exported from 

2 the United States in bulk or exported from the United 

3 States in equipment pre-charged with fluorinated green4 house gases or containing fluorinated greenhouse gases in 

5 closed cell foams. 

6 ‘‘(e) REFUND FOR CONSUMPTIVE USES AND DE7 STRUCTION.—In the case of a person who uses any 

8 fluorinated greenhouse gas for which a fee has been im9 posed under paragraph (1) or (2) of subsection (a) as an 

10 input for a manufactured good that transforms the 

11 fluorinated greenhouse gas such that it cannot later be 

12 emitted or otherwise destroys the gas (without emissions), 

13 a refund shall be allowed to such person in the same man14 ner as if it were an overpayment of the fee imposed by 

15 such subsection in an amount that is equal to the product 

16 of— 

17 ‘‘(1) an amount equal to the applicable percent18 age (as defined in subsection (c)(5)) of the applica19 ble amount under section 4691(b), for the calendar 

20 year in which such fluorinated greenhouse gas was 

21 used or destroyed, and 

22 ‘‘(2) the excess (if any) of— 

23 ‘‘(A) the total carbon dioxide equivalent of 

24 the fluorinated greenhouse gases used or de25 stroyed, over 


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1 ‘‘(B) the total carbon dioxide equivalent of 

2 any fluorinated greenhouse gases created as the 

3 result of the transformation or destruction 

4 process. 

5 ‘‘SEC. 4693. FEE FOR OTHER GREENHOUSE GAS EMISSIONS. 

6 ‘‘(a) IN GENERAL.—There is hereby imposed a fee 

7 in an amount determined under subsection (b) on the 

8 emission (including attributed emissions) of any green9 house gas (other than carbon dioxide or fluorinated green10 house gases) from any greenhouse gas emissions source. 

11 ‘‘(b) AMOUNT OF FEE.—The amount of fee imposed 

12 by subsection (a) shall be equal to the applicable amount 

13 determined under section 4691(b) per ton of carbon diox14 ide equivalent emitted by the greenhouse gas emissions 

15 source. 

16 ‘‘(c) GREENHOUSE GAS EMISSIONS SOURCE.—The 

17 term ‘greenhouse gas emissions source’ means any facility 

18 which— 

19 ‘‘(1) is required to report emissions (or which 

20 would be required to report emissions notwith21 standing any other provision of law prohibiting the 

22 implementation of or use of funds for such require23 ments), or to which emissions are attributed, under 

24 part 98 of title 40, Code of Federal Regulations, as 


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1 in effect on the date of the enactment of the Amer2 ican Opportunity Carbon Fee Act of 2018, and 

3 ‘‘(2) emitted during the previous calendar year 

4 greenhouse gases (not including carbon dioxide or 

5 fluorinated greenhouse gases) at a rate equal to the 

6 carbon dioxide equivalent of not less than 25,000 

7 tons. 

8 ‘‘SEC. 4694. ASSOCIATED EMISSIONS. 

9 ‘‘(a) REPORTING PROGRAM.— 

10 ‘‘(1) IN GENERAL.—Not later than January 1, 

11 2021, the Secretary, in consultation with the Admin12 istrator of the Environmental Protection Agency, the 

13 Secretary of the Interior, the Administrator of the 

14 Energy Information Administration, and the Admin15 istrator of the Pipeline and Hazardous Materials 

16 Safety Administration, shall establish and implement 

17 a program to identify all major source categories of 

18 associated emissions and collect data on associated 

19 emissions from the coal, petroleum products, and 

20 natural gas supply chains. 

21 ‘‘(2) ANNUAL REPORT.—Not later than 12 

22 months after the date that the Secretary implements 

23 the program described in paragraph (1), and annu24 ally thereafter, the Secretary shall issue a report, to 

25 be made available to the public and the appropriate 


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1 committees of Congress, on associated emissions, in2 cluding— 

3 ‘‘(A) identification of all major source cat4 egories of associated emissions, and 

5 ‘‘(B) the total amount, expressed in tons of 

6 carbon dioxide equivalent, of— 

7 ‘‘(i) methane and other greenhouse 

8 gases emitted across the coal supply chain 

9 within the United States during the pre10 ceding calendar year, 

11 ‘‘(ii) methane and other greenhouse 

12 gases emitted across the petroleum prod13 ucts supply chain within the United States 

14 during the preceding calendar year, and 

15 ‘‘(iii) methane and other greenhouse 

16 gases emitted across the natural gas sup17 ply chain within the United States during 

18 the preceding calendar year. 

19 ‘‘(b) SUPPLEMENTARY FEE FOR ASSOCIATED EMIS20 SIONS.— 

21 ‘‘(1) COAL.—In the case of any calendar year 

22 beginning after 2021, the fee imposed under section 

23 4691(a)(1) with respect to coal shall be increased by 

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1 mental Protection Agency) necessary to ensure that 

2 the total fees collected under such section with re3 spect to coal are equal to the total amount of such 

4 fees that would be collected on coal if the fee im5 posed under section 4691(a)(1) also applied to the 

6 carbon-dioxide equivalent of greenhouse gas emis7 sions reported under subsection (a)(2)(B)(i). 

8 ‘‘(2) PETROLEUM PRODUCTS.—In the case of 

9 any calendar year beginning after 2021, the fee im10 posed under section 4691(a)(1) with respect to pe11 troleum products shall be increased by the amount 

12 determined by the Secretary (in consultation with 

13 the Administrator of the Environmental Protection 

14 Agency) necessary to ensure that the total fees col15 lected under such section with respect to petroleum 

16 products are equal to the total amount of such fees 

17 that would be collected on petroleum products if the 

18 fee imposed under section 4691(a)(1) also applied to 

19 the carbon-dioxide equivalent of greenhouse gas 

20 emissions reported under subsection (a)(2)(B)(ii). 

21 ‘‘(3) NATURAL GAS.—In the case of any cal22 endar year beginning after 2021, the fee imposed 

23 under section 4691(a)(1) with respect to natural gas 

24 shall be increased by the amount determined by the 

25 Secretary (in consultation with the Administrator of 


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1 the Environmental Protection Agency) necessary to 

2 ensure that the total fees collected under such sec3 tion with respect to natural gas are equal to the 

4 total amount of such fees that would be collected on 

5 natural gas if the fee imposed under section 

6 4691(a)(1) also applied to the carbon-dioxide equiva7 lent of greenhouse gas emissions reported under sub8 section (a)(2)(B)(iii). 

9 ‘‘SEC. 4695. BORDER ADJUSTMENTS FOR ENERGY-INTEN10 SIVE MANUFACTURED GOODS. 

11 ‘‘(a) PURPOSE.—The purpose of this section is to en12 sure the environmental effectiveness of this subchapter. 

13 ‘‘(b) EXPORTS.— 

14 ‘‘(1) IN GENERAL.—In the case of any energy15 intensive manufactured good which is exported from 

16 the United States, the Secretary shall pay to the 

17 person exporting such good a refund equal to the 

18 amount of the cost of such good attributable to any 

19 fees imposed under this subchapter on inputs used 

20 in the manufacturing of such energy-intensive manu21 factured good (as determined under regulations es22 tablished by the Secretary). 

23 ‘‘(2) REDUCTION IN REFUND.—The amount of 

24 the refund under paragraph (1) shall be reduced by 

25 the amount, if any, of fees imposed on such goods 


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1 or comparable domestically produced energy-inten2 sive manufactured goods by the foreign nation or 

3 governmental unit to which such good is exported. 

4 ‘‘(c) IMPORTS.— 

5 ‘‘(1) IMPOSITION OF EQUIVALENCY FEE.—In 

6 the case of any energy-intensive manufactured good 

7 imported into the United States, there is imposed an 

8 equivalency fee on the person importing such good 

9 in an amount equal to the cost of such good which 

10 would be attributable to any fees imposed under this 

11 subchapter on inputs used in the manufacturing of 

12 such good if the inputs used in manufacturing such 

13 good were subject to such fees (as determined under 

14 regulations established by the Secretary). 

15 ‘‘(2) REDUCTION IN FEE.—The amount of the 

16 equivalency fee under paragraph (1) shall be reduced 

17 by the amount, if any, of any fees imposed on such 

18 energy-intensive manufactured goods by the foreign 

19 nation or governmental units from which such good 

20 was imported. 

21 ‘‘(d) TREATMENT OF ALTERNATIVE POLICIES AS

22 FEES.—Under regulations established by the Secretary, 

23 foreign policies that have substantially the same effect in 

24 reducing emissions of greenhouse gases as fees shall be 


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1 treated as fees for purposes of subsections (b)(2) and 

2 (c)(2). 

3 ‘‘(e) REGULATORY AUTHORITY.— 

4 ‘‘(1) IN GENERAL.—The Secretary shall consult 

5 with the Administrator of the Environmental Protec6 tion Agency and the Secretary of Energy in estab7 lishing rules and regulations implementing the pur8 poses of this section. 

9 ‘‘(2) TREATIES.—The Secretary, in consulta10 tion with the Secretary of State, may adjust the ap11 plicable amounts of the refunds and equivalency fees 

12 under this section in a manner that is consistent 

13 with any obligations of the United States under an 

14 international agreement. 

15 ‘‘SEC. 4696. DEFINITIONS AND OTHER RULES. 

16 ‘‘(a) DEFINITIONS.—For purposes of this sub17 chapter: 

18 ‘‘(1) CARBON DIOXIDE EQUIVALENT.—The 

19 term ‘carbon dioxide equivalent’ means, with respect 

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

21 has a global warming potential equivalent to 1 met22 ric ton of carbon dioxide, as determined pursuant to 

23 table A–1 of subpart A of part 98 of title 40, Code 

24 of Federal Regulations, as in effect on the date of 


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1 the enactment of the American Opportunity Carbon 

2 Fee Act of 2018. 

3 ‘‘(2) GREENHOUSE GAS.—The term ‘greenhouse 

4 gas’ has the meaning given such term under section 

5 211(o)(1)(G) of the Clean Air Act, as in effect on 

6 the date of the enactment of the American Oppor7 tunity Carbon Fee Act of 2018. 

8 ‘‘(3) COAL.—The term ‘coal’ has the same 

9 meaning given such term under section 48A(c)(4). 

10 ‘‘(4) PETROLEUM PRODUCT.—The term ‘petro11 leum product’ has the same meaning given such 

12 product under section 4612(a)(3). 

13 ‘‘(5) ASSOCIATED EMISSIONS.—The term ‘asso14 ciated emissions’ means greenhouse gas emissions 

15 attributable to venting, flaring, and leakage across 

16 the supply chain. 

17 ‘‘(6) SUPPLY CHAIN.—The term ‘supply chain’ 

18 means extraction and processing of coal and natural 

19 gas, extraction and refining of petroleum products, 

20 and the transmission, transport, storage, distribu21 tion, import, export, and other activities related to 

22 supplying coal, petroleum products, and natural gas 

23 to a consumer, not otherwise covered elsewhere in 

24 this subchapter as determined by the Administrator 

25 of the Environmental Protection Agency. 


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1 ‘‘(7) ENERGY-INTENSIVE MANUFACTURED

2 GOOD.— 

3 ‘‘(A) IN GENERAL.—The term ‘energy-in4 tensive manufactured good’ means any manu5 factured good (other than any petroleum prod6 uct or fossil fuel) for which not less than 5 per7 cent of the cost of which is attributable to en8 ergy costs, as determined by the Secretary. 

9 ‘‘(B) LIST OF ENERGY-INTENSIVE MANU10 FACTURED GOODS.— 

11 ‘‘(i) INITIAL LIST.—Not later than 

12 180 days after the date of the enactment 

13 of this Act, the Secretary shall publish a 

14 list of goods which qualify as energy-inten15 sive manufactured goods. 

16 ‘‘(ii) UPDATES.—Not less frequently 

17 than annually, the Secretary shall update 

18 the list published under this subparagraph. 

19 ‘‘(8) TON.— 

20 ‘‘(A) IN GENERAL.—The term ‘ton’ means 

21 1,000 kilograms. In the case of any greenhouse 

22 gas which is a gas, the term ‘ton’ means the 

23 amount of such gas in cubic meters which is the 

24 equivalent of 1,000 kilograms on a molecular 

25 weight basis. 


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1 ‘‘(B) FRACTIONAL PART OF TON.—In the 

2 case of a fraction of a ton, any fee imposed by 

3 this subchapter on such fraction shall be the 

4 same fraction of the amount of such fee im5 posed on a whole ton. 

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

7 States’ has the meaning given such term by section 

8 4612(a)(4). 

9 ‘‘(b) OTHER RULES.— 

10 ‘‘(1) ASSESSMENT AND COLLECTION.—Payment 

11 of the fee imposed by sections 4691, 4692, and 4693 

12 shall be assessed and collected in the same manner 

13 as taxes under this subtitle. 

14 ‘‘(2) REGULATIONS.—The Secretary shall pre15 scribe such regulations as may be necessary to carry 

16 out the provisions of this subchapter.’’. 

17 (b) CLERICAL AMENDMENT.—The table of sub18 chapters for chapter 38 of the Internal Revenue Code of 

19 1986 is amended by adding at the end the following new 

20 item: 

‘‘SUBCHAPTER E—CARBON DIOXIDE AND OTHER GREENHOUSE GAS EMISSION

FEES’’. 

21 (c) EFFECTIVE DATE.—The amendments made by 

22 this section shall apply to taxable years beginning after 

23 December 31, 2018. 


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1 TITLE II—RETURNING FEE REV2 ENUE TO THE AMERICAN 

3 PEOPLE 

4 SEC. 201. ESTABLISHMENT OF REFUNDABLE CREDIT FOR 

5 WORKERS. 

6 (a) IN GENERAL.—Subpart C of part IV of sub7 chapter A of chapter 1 of the Internal Revenue Code of 

8 1986 is amended by inserting after section 36 the fol9 lowing new section: 

10 ‘‘SEC. 36A. CARBON FEE OFFSET CREDIT. 

11 ‘‘(a) IN GENERAL.—In the case of an eligible indi12 vidual, there shall be allowed as a credit against the tax 

13 imposed by this subtitle for the taxable year an amount 

14 equal to the lesser of— 

15 ‘‘(1) 6.2 percent of the earned income of the 

16 taxpayer, or 

17 ‘‘(2) $800 (twice such amount in the case of a 

18 joint return). 

19 ‘‘(b) ELIGIBLE INDIVIDUAL.—For purposes of this 

20 section, the term ‘eligible individual’ means any individual 

21 other than— 

22 ‘‘(1) any nonresident alien individual, 

23 ‘‘(2) any individual with respect to whom a de24 duction under section 151 is allowable to another 

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1 endar year in which the individual’s taxable year be2 gins, and 

3 ‘‘(3) any individual who, for the month of De4 cember of the taxable year, was entitled to or eligible 

5 for a benefit payment described in paragraph (1) or 

6 (2) of section 202(b) of the American Opportunity 

7 Carbon Fee Act of 2018. 

8 ‘‘(c) EARNED INCOME.— 

9 ‘‘(1) IN GENERAL.—For purposes of this sec10 tion, the term ‘earned income’ has the meaning 

11 given such term by section 32(c)(2), except that 

12 such term shall not include net earnings from self13 employment which are not taken into account in 

14 computing taxable income. 

15 ‘‘(2) CERTAIN COMBAT ZONE COMPENSATION.— 

16 For purposes of paragraph (1), any amount ex17 cluded from gross income by reason of section 112 

18 shall be treated as earned income which is taken 

19 into account in computing taxable income for the 

20 taxable year. 

21 ‘‘(d) INFLATION ADJUSTMENT.— 

22 ‘‘(1) IN GENERAL.—In the case of a taxable 

23 year beginning after 2019, the $800 amount in sub24 section (a)(2) shall be increased by an amount equal 

25 to— 


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1 ‘‘(A) such dollar amount, multiplied by 

2 ‘‘(B) the percentage (if any) by which— 

3 ‘‘(i) the CPI for the preceding cal4 endar year, exceeds 

5 ‘‘(ii) the CPI for calendar year 2018. 

6 ‘‘(2) CPI.—Rules similar to the rules of para7 graphs (4) and (5) of section 1(f) shall apply for 

8 purposes of this subsection. 

9 ‘‘(3) ROUNDING.—If any dollar amount, after 

10 being increased under paragraph (1), is not a mul11 tiple of $10, such dollar amount shall be rounded to 

12 the next lowest multiple of $10.’’. 

13 (b) REFUNDS DISREGARDED IN THE ADMINISTRA14 TION OF FEDERAL PROGRAMS AND FEDERALLY AS15 SISTED PROGRAMS.—Any credit or refund allowed or 

16 made to any individual by reason of section 36A of the 

17 Internal Revenue Code of 1986 (as added by this section) 

18 shall not be taken into account as income and shall not 

19 be taken into account as resources for purposes of deter20 mining the eligibility of such individual or any other indi21 vidual for benefits or assistance, or the amount or extent 

22 of benefits or assistance, under any Federal program or 

23 under any State or local program financed in whole or in 

24 part with Federal funds. 

25 (c) CONFORMING AMENDMENTS.— 


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1 (1) Section 6211(b)(4)(A) of the Internal Rev2 enue Code of 1986 is amended by inserting ‘‘36A,’’ 

3 after ‘‘36,’’. 

4 (2) The table of sections for subpart C of part 

5 IV of subchapter A of chapter 1 of such Code is 

6 amended by inserting after the item relating to sec7 tion 36 the following new item: 

‘‘Sec. 36A. Carbon fee offset credit.’’. 

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

9 this section shall apply to taxable years beginning after 

10 December 31, 2018. 

11 SEC. 202. ESTABLISHMENT OF PAYMENTS TO SOCIAL SECU12 RITY BENEFICIARIES AND OTHER RETIRED 

13 AND DISABLED AMERICANS. 

14 (a) AUTHORITY TO MAKE PAYMENTS.—The Sec15 retary of the Treasury or the Secretary of the Treasury’s 

16 delegate (referred to in this section as the ‘‘Secretary’’) 

17 shall, during the period between April 1 and May 15 of 

18 calendar year 2020 and each year thereafter, disburse a 

19 payment to each eligible beneficiary in an amount equal 

20 to the amount in effect for taxable years beginning in the 

21 preceding calendar year under section 36A(a)(2) of the In22 ternal Revenue Code of 1986. 

23 (b) ELIGIBLE BENEFICIARY.—For purposes of this 

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1 vidual who, for the month of December of the preceding 

2 year, was— 

3 (1) entitled to any benefit payment described in 

4 subparagraph (B) of section 2201(a)(1) of the 

5 American Recovery and Reinvestment Act of 2009; 

6 or 

7 (2) eligible for a benefit payment described in 

8 subparagraph (C) of such section. 

9 (c) RESIDENCY REQUIREMENT.—A payment may be 

10 made under this section only to an eligible beneficiary who 

11 resides in any State (as defined in section 204(f)), as de12 termined based on the current address of record for such 

13 beneficiary under the applicable program for payment of 

14 benefits described in subsection (b). 

15 (d) NO DOUBLE PAYMENTS.—An eligible beneficiary 

16 may not receive more than 1 payment per calendar year 

17 under this section, regardless of whether such beneficiary 

18 is entitled to or eligible for more than 1 benefit payment 

19 described in paragraph (1) or (2) of subsection (b). 

20 (e) IDENTIFICATION OF RECIPIENTS.—The Commis21 sioner of Social Security, the Railroad Retirement Board, 

22 and the Secretary of Veterans Affairs shall certify the eli23 gible beneficiaries entitled to receive payments under this 

24 section and provide the Secretary with any information 

25 necessary to disburse such payments. 


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1 (f) APPLICATION OF ADDITIONAL RULES.—Rules 

2 similar to the rules of subsections (a)(4), (c), and (d) of 

3 section 2201 of the American Recovery and Reinvestment 

4 Act of 2009 shall apply for purposes of payments under 

5 this section. 

6 SEC. 203. STATE-BASED COST MITIGATION GRANT PRO7 GRAM. 

8 (a) IN GENERAL.—The Secretary of the Treasury 

9 shall provide to each State which meets the requirements 

10 of subsection (d) a cost mitigation grant for each calendar 

11 year after 2018 in an amount determined under sub12 section (c). 

13 (b) USE OF FUNDS.—A State receiving a cost mitiga14 tion grant under this section may use the grant only— 

15 (1) to assist low-income households in reducing 

16 energy expenses and meeting cost increases attrib17 utable to the fees imposed under subchapter E of 

18 chapter 38 of the Internal Revenue Code of 1986 

19 (as added by this Act); 

20 (2) to assist rural households in reducing en21 ergy expenses and meeting such increases attrib22 utable to such fees; and 

23 (3) to provide job training and worker transi24 tion assistance, with priority given to workers and 

25 former workers in fossil-fuel related industries. 


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1 (c) AMOUNT OF GRANT.— 

2 (1) IN GENERAL.—The amount of the cost miti3 gation grant made to any State for any calendar 

4 year shall be equal to the product of— 

5 (A) the annual grant limitation determined 

6 under paragraph (3) for such calendar year; 

7 and 

8 (B) the State allocation percentage for the 

9 State (determined under paragraph (2)). 

10 (2) STATE ALLOCATION PERCENTAGE.—The 

11 ‘‘State allocation percentage’’ for a State is the 

12 amount (expressed as a percentage) equal to the 

13 quotient of— 

14 (A) the population of such State (as re15 ported in the most recent decennial census); 

16 and 

17 (B) the population of all States (as re18 ported in the most recent decennial census). 

19 (3) ANNUAL APPROPRIATION FOR GRANTS.— 

20 (A) IN GENERAL.—The annual grant limi21 tation is $10,000,000,000. 

22 (B) INFLATION ADJUSTMENT.— 

23 (i) IN GENERAL.—In the case of any 

24 calendar year after 2019, the 

25 $10,000,000,000 amount in subparagraph 


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1 (A) shall be increased by an amount equal 

2 to— 

3 (I) such dollar amount; multi4 plied by 

5 (II) the percentage (if any) by 

6 which— 

7 (aa) the CPI for the pre8 ceding calendar year; exceeds 

9 (bb) the CPI for calendar 

10 year 2018. 

11 (ii) CPI.—Rules similar to the rules 

12 of paragraphs (4) and (5) of section 1(f) 

13 of the Internal Revenue Code of 1986 shall 

14 apply for purposes of this subparagraph. 

15 (4) REDISTRIBUTION.—In any case in which 

16 one or more States do not meet the requirements de17 scribed in subsection (d) for a calendar year, an 

18 amount equal to the State allocation percentage for 

19 such State or States shall be distributed to each 

20 State which did meet such conditions in an amount 

21 equal to the product of— 

22 (A) such amount; and 

23 (B) the State allocation percentage of such 

24 State (determined by not taking into account 

25 under paragraph (2)(B) the population of any 


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1 State which did not meet the requirements of 

2 subsection (d) for such calendar year). 

3 (d) REQUIREMENTS FOR RECEIPT OF GRANT.— 

4 (1) IN GENERAL.—A State is eligible to receive 

5 a cost mitigation grant for any calendar year if— 

6 (A) the chief executive officer of the State 

7 certifies that the State will use such grant as 

8 needed to deliver benefits to all eligible low-in9 come individuals through a household rebate 

10 program; 

11 (B) the State has filed with the Secretary 

12 of the Treasury a State plan covering the cal13 endar year which details the use of the funds 

14 received under the grant; 

15 (C) the State agrees to comply with any 

16 audit requirements under subsection (d); and 

17 (D) the State has complied with the re18 quirements of this section for all preceding 

19 years or the State has remedied all prior non20 compliance to the satisfaction of the Secretary 

21 of the Treasury. 

22 (2) HOUSEHOLD REBATE PROGRAM.—For pur23 poses of paragraph (1)(A)— 

24 (A) IN GENERAL.—The term ‘‘household 

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1 ering to monthly benefits in an aggregate an2 nual amount equal to the applicable amount to 

3 all eligible low-income individuals through a 

4 State-administered electronic benefit transfer 

5 system. 

6 (B) APPLICABLE AMOUNT.—The term 

7 ‘‘applicable amount’’ means, with respect to any 

8 eligible low-income individual for any calendar 

9 year, an amount equal to the excess of— 

10 (i) the amount in effect for taxable 

11 years ending with or within the preceding 

12 calendar year under section 36A(a)(2) of 

13 the Internal Revenue Code of 1986; over 

14 (ii) any amount allowed or claimed as 

15 a credit by such individual under such sec16 tion for the taxable year ending with or 

17 within the preceding calendar year. 

18 (C) ELIGIBLE LOW-INCOME INDIVIDUAL.— 

19 The term ‘‘eligible low-income individual’’ 

20 means, with respect to any calendar year, any 

21 individual who— 

22 (i) has attained the age of 18 before 

23 the end of the calendar year; 

24 (ii) lives in a household that has a 

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1 cent of the poverty line as defined by sec2 tion 673(2) of the Community Services 

3 Block Grant Act; 

4 (iii) participates in a federally funded 

5 State administered assistance program or 

6 otherwise applies for such benefits under 

7 such a program; and 

8 (iv) for the month of December of the 

9 preceding calendar year, was not entitled 

10 to or eligible for a benefit payment de11 scribed in section 202(b). 

12 (D) COORDINATION RULES.—The Sec13 retary of the Treasury shall coordinate with the 

14 States and other applicable Federal agencies to 

15 identify eligible low-income individuals. 

16 (e) AUDITS.—The Secretary of the Treasury shall 

17 audit the State use of grants under this section to ensure 

18 such uses comply with the requirements of this section and 

19 with the uses identified by the State under subsection 

20 (d)(1)(B). The Secretary may withhold a grant under this 

21 section if the Secretary determines that a State has not 

22 complied with such requirements. 

23 (f) STATE.—For purposes of this section, the term 

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1 monwealth of the Northern Mariana Islands, and the 

2 United States Virgin Islands. 

3 (g) APPROPRIATIONS.—For any fiscal year, there is 

4 hereby appropriated an amount equal to the annual grant 

5 limitation determined under subsection (c)(3) for the cal6 endar year in which such fiscal year begins. 

7 TITLE III—OTHER PROVISIONS 

8 SEC. 301. PUBLIC DISCLOSURE OF REVENUES AND EX9 PENDITURES. 

10 (a) ESTABLISHMENT OF WEBSITE.—The Secretary 

11 of the Treasury, or the Secretary’s designee, shall estab12 lish a website for purposes of making the disclosures de13 scribed in subsection (b). 

14 (b) DISCLOSURES.—The Secretary shall make pub15 licly available, on an ongoing basis and as frequently as 

16 possible, the following information: 

17 (1) The amount and sources of revenue attrib18 utable to this Act and the amendments made by this 

19 Act. 

20 (2) The amount of tax savings and benefits re21 ceived as a result of title II of this Act. 

22 SEC. 302. SEVERABILITY. 

23 If any provision of this Act or amendment made by 

24 this Act, or the application of a provision or amendment 

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1 tional, the remainder of this Act and amendments made 

2 by this Act, and the application of the provisions and 

3 amendment to any person or circumstance, shall not be 

4 affected by the holding. 

Æ 


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