II 

114TH CONGRESS 

1ST SESSION S. 1548 

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 

JUNE 10, 2015 

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 2015’’. 


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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. Escaped methane. 

‘‘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 2015, 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 2016, $45, 

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 

12 same manner as if it were an overpayment 

13 of the fee imposed by such subsection, to 

14 such person in amount determined under 

15 subparagraph (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 ‘‘(II) RECAPTURE.—The Sec6 retary shall, by regulations, provide 

7 for recapturing the benefit of any re8 fund made under subparagraph (A) 

9 with respect to any qualified carbon 

10 dioxide which is disposed in secure 

11 storage and ceases to be stored in a 

12 manner consistent with the require13 ments of this section. 

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

15 in consultation with the Administrator of 

16 the Environmental Protection Agency, 

17 shall establish regulations providing for the 

18 appropriate methods and manners for the 

19 utilization of qualified carbon dioxide 

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

21 the utilization of captured carbon dioxide 

22 for enhanced oil or gas recovery and the 

23 production of substances such as plastics, 

24 biofuels, and chemicals. Such regulations 

25 shall provide for the minimization of the 


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1 escape or further emission of the qualified 

2 carbon dioxide into the atmosphere. 

3 ‘‘(E) QUALIFIED CARBON DIOXIDE; QUALI4 FIED FACILITY.—For purposes of this para5 graph— 

6 ‘‘(i) QUALIFIED CARBON DIOXIDE.— 

7 The term ‘qualified carbon dioxide’ has the 

8 same meaning given that term under sec9 tion 45Q(b). 

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

11 ‘qualified facility’ has the same meaning 

12 given that term under section 45Q(c), de13 termined without regard to paragraph (3) 

14 thereof. 

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

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

17 product, or natural gas for which a fee has been im18 posed under subsection (a)(1) as an input for a 

19 manufactured good that encapsulates carbon dioxide 

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

21 emission of carbon dioxide in the manufacturing or 

22 subsequent use of such good, a refund shall be al23 lowed to such person in the same manner as if it 

24 were an overpayment of the fee imposed by such sec25 tion in an amount that is equal to the product of— 


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

2 amount under subsection (b) for the calendar 

3 year in which such product was used, and 

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

5 would have otherwise been emitted through the 

6 combustion of such product. 

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

8 exports any coal, petroleum product, or natural gas 

9 from the United States for which a fee has been im10 posed under subsection (a)(1), a refund shall be al11 lowed to such person in the same manner as if it 

12 were an overpayment of the fee imposed by such sec13 tion in an amount that is equal to the fee previously 

14 imposed under such subsection with respect to such 

15 product (determined without regard to any increase 

16 under section 4694). 

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

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

19 in an amount determined under subsection (b) on 

20 fluorinated greenhouse gases— 

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

22 production facility, 

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

24 fluorinated greenhouse gas importer, or 


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1 ‘‘(3) emitted by an industrial fluorinated green2 house gas facility. 

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

4 by subsection (a) shall be equal to 10 percent of the appli5 cable amount determined under section 4691(b) per ton 

6 of carbon dioxide equivalent produced or imported. 

7 ‘‘(c) DEFINITIONS.— 

8 ‘‘(1) FLUORINATED GREENHOUSE GAS PRODUC9 TION FACILITY.—The term ‘fluorinated greenhouse 

10 gas production facility’ means any facility which is 

11 included under the industrial gas supplier source 

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

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

14 of the enactment of the American Opportunity Car15 bon Fee Act of 2015. 

16 ‘‘(2) FLUORINATED GREENHOUSE GAS IM17 PORTER.—The term ‘fluorinated greenhouse gas im18 porter’ means any importer who is included under— 

19 ‘‘(A) the industrial gas supplier source cat20 egory under subpart OO of part 98 of title 40, 

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

22 the enactment of the American Opportunity 

23 Carbon Fee Act of 2015, or 

24 ‘‘(B) the source category under subpart 

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


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1 ‘‘(3) INDUSTRIAL FLUORINATED GREENHOUSE

2 GAS FACILITY.—The term ‘industrial greenhouse gas 

3 facility’ means any facility which— 

4 ‘‘(A) is included under— 

5 ‘‘(i) the aluminum production source 

6 category under subpart F of part 98 of 

7 title 40, Code of Regulations, as in effect 

8 on the date of the enactment of the Amer9 ican Opportunity Carbon Fee Act of 2015, 

10 ‘‘(ii) the HCFC-22 production and 

11 HFC-23 destruction source category under 

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

13 ‘‘(iii) the fluorinated gas production 

14 source category under subpart L of such 

15 part (as so in effect), and 

16 ‘‘(B) emitted during the previous calendar 

17 year fluorinated greenhouse gases with a total 

18 carbon dioxide equivalent of not less than 

19 25,000 tons. 

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

21 determining fluorinated greenhouse gases produced or im22 ported under subsection (a), there shall not be taken into 

23 account any fluorinated greenhouse gases exported from 

24 the United States in bulk or exported from the United 

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1 house gases or containing fluorinated greenhouse gases in 

2 closed cell foams. 

3 ‘‘(e) REFUND FOR CONSUMPTIVE USES AND DE4 STRUCTION.—In the case of a person who uses any 

5 fluorinated greenhouse gas for which a fee has been im6 posed under paragraph (1) or (2) of subsection (a) as an 

7 input for a manufactured good that transforms the 

8 fluorinated greenhouse gas such that it cannot later be 

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

10 a refund shall be allowed to such person in the same man11 ner as if it were an overpayment of the fee imposed by 

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

13 of— 

14 ‘‘(1) an amount equal to 10 percent of the ap15 plicable amount under section 4691(b) for the cal16 endar year in which such fluorinated greenhouse gas 

17 was used or destroyed, and 

18 ‘‘(2) the excess (if any) of— 

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

20 the fluorinated greenhouse gases used or de21 stroyed, over 

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

23 any fluorinated greenhouse gases created as the 

24 result of the transformation or destruction 

25 process. 


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

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

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

4 emission (including attributed emissions) of any green5 house gas (other than carbon dioxide or fluorinated green6 house gases) from any greenhouse gas emissions source. 

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

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

9 determined under section 4691(b) per ton of carbon diox10 ide equivalent emitted by the greenhouse gas emissions 

11 source. 

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

13 term ‘greenhouse gas emissions source’ means any facility 

14 which— 

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

16 would be required to report emissions notwith17 standing any other provision of law prohibiting the 

18 implementation of or use of funds for such require19 ments), or to which emissions are attributed, under 

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

21 in effect on the date of the enactment of the Amer22 ican Opportunity Carbon Fee Act of 2015, and 

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

24 greenhouse gases (not including carbon dioxide or 

25 fluorinated greenhouse gases) at a rate equal to the 


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1 carbon dioxide equivalent of not less than 25,000 

2 tons. 

3 ‘‘SEC. 4694. ESCAPED METHANE. 

4 ‘‘(a) REPORTING PROGRAM.— 

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

6 2017, the Secretary of the Treasury, in consultation 

7 with the Administrator of the Environmental Protec8 tion Agency and the Administrator of the Energy 

9 Information Administration, shall establish and im10 plement a program to provide for the collection of 

11 data on methane emissions by major non-natural 

12 sources, including methane emissions attributable to 

13 the extraction and distribution of coal, petroleum 

14 products, and natural gas. 

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

16 months after the date that the Secretary implements 

17 the program described in paragraph (1), and annu18 ally thereafter, the Secretary shall issue a report, to 

19 be made available to the public and the appropriate 

20 Committees of Congress, on methane emissions, in21 cluding— 

22 ‘‘(A) identification of all major non-natural 

23 source categories of methane emissions, and 

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

25 carbon dioxide equivalent, of— 


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1 ‘‘(i) methane emissions and total 

2 greenhouse gas emissions attributable to 

3 the extraction and distribution of coal 

4 within the United States during the pre5 ceding calendar year, 

6 ‘‘(ii) methane emissions and total 

7 greenhouse gas emissions attributable to 

8 the extraction and distribution of petro9 leum products within the United States 

10 during the preceding calendar year, and 

11 ‘‘(iii) methane emissions and total 

12 greenhouse gas emissions attributable to 

13 the extraction and distribution of natural 

14 gas within the United States during the 

15 preceding calendar year. 

16 ‘‘(b) SUPPLEMENTARY FEE FOR ESCAPED METH17 ANE.— 

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

19 beginning after 2017, the fee imposed under section 

20 4691(a)(1) with respect to coal shall be increased by 

21 the amount determined by the Secretary (in con22 sultation with the Administrator of the Environ23 mental Protection Agency) necessary to ensure that 

24 the total fees collected under such section with re25 spect to coal are equal to the total amount of such 


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1 fees that would be collected on coal if the fee im2 posed under section 4691(a)(1) also applied to the 

3 carbon-dioxide equivalent of methane emissions re4 ported under subsection (a)(2)(B)(i). 

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

6 any calendar year beginning after 2017, the fee im7 posed under section 4691(a)(1) with respect to pe8 troleum products shall be increased by the amount 

9 determined by the Secretary (in consultation with 

10 the Administrator of the Environmental Protection 

11 Agency) necessary to ensure that the total fees col12 lected under such section with respect to petroleum 

13 products are equal to the total amount of such fees 

14 that would be collected on petroleum products if the 

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

16 the carbon-dioxide equivalent of methane emissions 

17 reported under subsection (a)(2)(B)(ii). 

18 ‘‘(3) NATURAL GAS.—In the case of any cal19 endar year beginning after 2017, the fee imposed 

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

21 shall be increased by the amount determined by the 

22 Secretary (in consultation with the Administrator of 

23 the Environmental Protection Agency) necessary to 

24 ensure that the total fees collected under such sec25 tion with respect to natural gas are equal to the 


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1 total amount of such fees that would be collected on 

2 natural gas if the fee imposed under section 

3 4691(a)(1) also applied to the carbon-dioxide equiva4 lent of methane emissions reported under subsection 

5 (a)(2)(B)(iii). 

6 ‘‘SEC. 4695. BORDER ADJUSTMENTS FOR ENERGY-INTEN7 SIVE MANUFACTURED GOODS. 

8 ‘‘(a) PURPOSE.—The purpose of this section is to en9 sure the environmental effectiveness of this subchapter. 

10 ‘‘(b) EXPORTS.— 

11 ‘‘(1) IN GENERAL.—In the case of any energy12 intensive manufactured good which is exported from 

13 the United States, the Secretary shall pay to the 

14 person exporting such good a refund equal to the 

15 amount of the cost of such good attributable to any 

16 fees imposed under this subchapter on inputs used 

17 in the manufacturing of such energy-intensive manu18 factured good (as determined under regulations es19 tablished by the Secretary). 

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

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

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

23 or comparable domestically produced energy-inten24 sive manufactured goods by the foreign nation or 

25 governmental unit to which such good is exported. 


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1 ‘‘(c) IMPORTS.— 

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

3 the case of any energy-intensive manufactured good 

4 imported into the United States, there is imposed an 

5 equivalency fee on the person importing such good 

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

7 would be attributable to any fees imposed under this 

8 subchapter on inputs used in the manufacturing of 

9 such good if the inputs used in manufacturing such 

10 good were subject to such fees (as determined under 

11 regulations established by the Secretary). 

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

13 equivalency fee under paragraph (1) shall be reduced 

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

15 energy-intensive manufactured goods by the foreign 

16 nation or governmental units from which such good 

17 was imported. 

18 ‘‘(d) TREATMENT OF ALTERNATIVE POLICIES AS

19 FEES.—Under regulations established by the Secretary, 

20 foreign policies that have substantially the same effect in 

21 reducing emissions of greenhouse gases as fees shall be 

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

23 (c)(2). 

24 ‘‘(e) REGULATORY AUTHORITY.— 


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

2 with the Administrator of the Environmental Protec3 tion Agency and the Secretary of Energy in estab4 lishing rules and regulations implementing the pur5 poses of this section. 

6 ‘‘(2) TREATIES.—The Secretary, in consulta7 tion with the Secretary of State, may adjust the ap8 plicable amounts of the refunds and equivalency fees 

9 under this section in a manner that is consistent 

10 with any obligations of the United States under an 

11 international agreement. 

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

13 ‘‘(a) DEFINITIONS.—For purposes of this sub14 chapter: 

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

16 term ‘carbon dioxide equivalent’ means, with respect 

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

18 has a global warming potential equivalent to 1 met19 ric ton of carbon dioxide, as determined pursuant to 

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

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

22 the enactment of the American Opportunity Carbon 

23 Fee Act of 2015. 

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

25 gas’ has the meaning given such term under section 


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

2 the date of the enactment of the American Oppor3 tunity Carbon Fee Act of 2015. 

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

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

6 ‘‘(4) PETROLEUM PRODUCT.—The term ‘petro7 leum product’ has the same meaning given such 

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

9 ‘‘(5) ENERGY-INTENSIVE MANUFACTURED

10 GOOD.— 

11 ‘‘(A) IN GENERAL.—The term ‘energy-in12 tensive manufactured good’ means any manu13 factured good for which not less than 5 percent 

14 of the cost of which is attributable to energy 

15 costs, as determined by the Secretary. 

16 ‘‘(B) LIST OF ENERGY-INTENSIVE MANU17 FACTURED GOODS.— 

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

19 180 days after the date of the enactment 

20 of this Act, the Secretary shall publish a 

21 list of goods which qualify as energy-inten22 sive manufactured goods. 

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

24 than annually, the Secretary shall update 

25 the list published under this subparagraph. 


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1 ‘‘(6) TON.— 

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

3 1,000 kilograms. In the case of any greenhouse 

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

5 amount of such gas in cubic meters which is the 

6 equivalent of 1,000 kilograms on a molecular 

7 weight basis. 

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

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

10 this subchapter on such fraction shall be the 

11 same fraction of the amount of such fee im12 posed on a whole ton. 

13 ‘‘(7) UNITED STATES.—The term ‘United 

14 States’ has the meaning given such term by section 

15 4612(a)(4). 

16 ‘‘(b) OTHER RULES.— 

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

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

19 shall be assessed and collected in the same manner 

20 as taxes under this subtitle. 

21 ‘‘(2) REGULATIONS.—The Secretary shall pre22 scribe such regulations as may be necessary to carry 

23 out the provisions of this subchapter.’’. 

24 (b) CLERICAL AMENDMENT.—The table of sub25 chapters for chapter 38 of the Internal Revenue Code of 


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1 1986 is amended by adding at the end the following new 

2 item: 

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

FEES’’. 

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

4 this section shall apply to taxable years beginning after 

5 December 31, 2015. 

6 TITLE II—RETURNING FEE REV7 ENUE TO THE AMERICAN 

8 PEOPLE 

9 SEC. 201. REDUCTION IN CORPORATE TAX RATE. 

10 (a) IN GENERAL.—Section 11(b) of the Internal Rev11 enue Code of 1986 is amended— 

12 (1) by inserting ‘‘and’’ at the end of subpara13 graph (B), 

14 (2) by striking subparagraphs (C) and (D) and 

15 inserting the following: 

16 ‘‘(C) 29 percent of so much of the taxable 

17 income as exceeds $75,000.’’, 

18 (3) by striking ‘‘$11,750’’ in the second sen19 tence and inserting ‘‘$8,000’’, and 

20 (4) by striking the last sentence. 

21 (b) CONFORMING AMENDMENTS.— 

22 (1) Paragraph (2) of section 11(b) of the Inter23 nal Revenue Code of 1986 is amended by striking 

24 ‘‘35 percent’’ and inserting ‘‘29 percent’’. 


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1 (2) Paragraphs (1) and (2) of section 1445(e) 

2 of such Code are each amended by striking ‘‘35 per3 cent’’ and inserting ‘‘29 percent’’. 

4 (3) Subparagraph (A) of section 7518(g)(6) of 

5 such Code is amended by striking ‘‘34 percent’’ and 

6 inserting ‘‘29 percent’’. 

7 (4) Paragraph (2) of section 53511(f) of title 

8 46, United States Code, is amended by striking ‘‘34 

9 percent’’ and inserting ‘‘29 percent’’. 

10 (c) EFFECTIVE DATES.— 

11 (1) IN GENERAL.—Except as provided in para12 graph (2), the amendments made by this section 

13 shall apply to taxable years beginning after Decem14 ber 31, 2015. 

15 (2) WITHHOLDING.—The amendments made by 

16 subsection (b)(2) shall take effect on January 1, 

17 2016. 

18 SEC. 202. ESTABLISHMENT OF REFUNDABLE CREDIT FOR 

19 WORKERS. 

20 (a) IN GENERAL.—Subpart C of part IV of sub21 chapter A of chapter 1 of the Internal Revenue Code of 

22 1986 is amended by inserting after section 36 the fol23 lowing new section: 


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

2 ‘‘(a) IN GENERAL.—In the case of an eligible indi3 vidual, there shall be allowed as a credit against the tax 

4 imposed by this subtitle for the taxable year an amount 

5 equal to the lesser of— 

6 ‘‘(1) 6.2 percent of the earned income of the 

7 taxpayer, or 

8 ‘‘(2) $500 (twice such amount in the case of a 

9 joint return). 

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

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

12 other than— 

13 ‘‘(1) any nonresident alien individual, 

14 ‘‘(2) any individual with respect to whom a de15 duction under section 151 is allowable to another 

16 taxpayer for a taxable year beginning in the cal17 endar year in which the individual’s taxable year be18 gins, and 

19 ‘‘(3) any individual who, for the month of De20 cember of the taxable year, was entitled to or eligible 

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

22 (2) of section 203(b) of the American Opportunity 

23 Carbon Fee Act of 2015. 

24 ‘‘(c) EARNED INCOME.— 

25 ‘‘(1) IN GENERAL.—For purposes of this sec26 tion, the term ‘earned income’ has the meaning 


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

2 such term shall not include net earnings from self3 employment which are not taken into account in 

4 computing taxable income. 

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

6 For purposes of paragraph (1), any amount ex7 cluded from gross income by reason of section 112 

8 shall be treated as earned income which is taken 

9 into account in computing taxable income for the 

10 taxable year. 

11 ‘‘(d) INFLATION ADJUSTMENT.— 

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

13 year beginning after 2016, the $500 amount in sub14 section (a)(2) shall be increased by an amount equal 

15 to— 

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

17 ‘‘(B) the cost-of-living adjustment deter18 mined under section 1(f)(3) for the calendar 

19 year in which the taxable year begins, deter20 mined by substituting ‘calendar year 2015’ for 

21 ‘calendar year 1992’ in subparagraph (B) 

22 thereof. 

23 ‘‘(2) ROUNDING.—If any dollar amount, after 

24 being increased under paragraph (1), is not a mulVerDate Sep 11 2014 04:07 Jun 11, 2015 Jkt 049200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\S1548.IS S1548

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1 tiple of $10, such dollar amount shall be rounded to 

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

3 (b) REFUNDS DISREGARDED IN THE ADMINISTRA4 TION OF FEDERAL PROGRAMS AND FEDERALLY AS5 SISTED PROGRAMS.—Any credit or refund allowed or 

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

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

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

9 be taken into account as resources for purposes of deter10 mining the eligibility of such individual or any other indi11 vidual for benefits or assistance, or the amount or extent 

12 of benefits or assistance, under any Federal program or 

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

14 part with Federal funds. 

15 (c) CONFORMING AMENDMENTS.— 

16 (1) Section 6211(b)(4)(A) of the Internal Rev17 enue Code of 1986 is amended by inserting ‘‘36A,’’ 

18 after ‘‘36,’’. 

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

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

21 amended by inserting after the item relating to sec22 tion 36 the following new item: 

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

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

24 this section shall apply to taxable years beginning after 

25 December 31, 2014. 


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1 SEC. 203. ESTABLISHMENT OF PAYMENTS TO SOCIAL SECU2 RITY BENEFICIARIES AND OTHER RETIRED 

3 AND DISABLED AMERICANS. 

4 (a) AUTHORITY TO MAKE PAYMENTS.—The Sec5 retary of the Treasury or the Secretary of the Treasury’s 

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

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

8 calendar year 2016 and each year thereafter, disburse a 

9 payment to each eligible beneficiary in an amount equal 

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

11 preceding calendar year under section 36A(a)(2) of the In12 ternal Revenue Code of 1986. 

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

14 section, the term ‘‘eligible beneficiary’’ means an indi15 vidual who, for the month of December of the preceding 

16 year, was— 

17 (1) entitled to any benefit payment described in 

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

19 American Recovery and Reinvestment Act of 2009; 

20 or 

21 (2) eligible for a benefit payment described in 

22 subparagraph (C) of such section. 

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

24 made under this section only to an eligible beneficiary who 

25 resides in any State (as defined in section 204(f)), as de26 termined based on the current address of record for such 


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1 beneficiary under the applicable program for payment of 

2 benefits described in subsection (b). 

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

4 may not receive more than 1 payment per calendar year 

5 under this section, regardless of whether such beneficiary 

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

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

8 (e) IDENTIFICATION OF RECIPIENTS.—The Commis9 sioner of Social Security, the Railroad Retirement Board, 

10 and the Secretary of Veterans Affairs shall certify the eli11 gible beneficiaries entitled to receive payments under this 

12 section and provide the Secretary with any information 

13 necessary to disburse such payments. 

14 (f) APPLICATION OF ADDITIONAL RULES.—Rules 

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

16 section 2201 of the American Recovery and Reinvestment 

17 Act of 2009 shall apply for purposes of payments under 

18 this section. 

19 SEC. 204. STATE-BASED COST MITIGATION GRANT PRO20 GRAM. 

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

22 shall provide to each State which meets the requirements 

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

24 year after 2015 in an amount determined under sub25 section (c). 


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1 (b) USE OF FUNDS.—A State receiving a cost mitiga2 tion grant under this section may use the grant only— 

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

4 energy expenses and meeting cost increases attrib5 utable to the fees imposed under subchapter E of 

6 chapter 38 of the Internal Revenue Code of 1986 

7 (as added by this Act); 

8 (2) to assist rural households in reducing en9 ergy expenses and meeting such increases attrib10 utable to such fees; and 

11 (3) to provide job training and worker transi12 tion assistance, with priority given to workers and 

13 former workers in fossil-fuel related industries. 

14 (c) AMOUNT OF GRANT.— 

15 (1) IN GENERAL.—The amount of the cost miti16 gation grant made to any State for any calendar 

17 year shall be equal to the product of— 

18 (A) the annual grant limitation determined 

19 under paragraph (3) for such calendar year; 

20 and 

21 (B) the State allocation percentage for the 

22 State (determined under paragraph (2)). 

23 (2) STATE ALLOCATION PERCENTAGE.—The 

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


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1 amount (expressed as a percentage) equal to the 

2 quotient of— 

3 (A) the population of such State (as re4 ported in the most recent decennial census); 

5 and 

6 (B) the population of all States (as re7 ported in the most recent decennial census). 

8 (3) ANNUAL GRANT LIMITATION.— 

9 (A) IN GENERAL.—The annual grant limi10 tation is $20,000,000,000. 

11 (B) INFLATION ADJUSTMENT.—In the case 

12 of any calendar year after 2016, the 

13 $20,000,000,000 amount in subparagraph (A) 

14 shall be increased by an amount equal to— 

15 (i) such dollar amount; multiplied by 

16 (ii) the cost-of-living adjustment de17 termined under section 1(f)(3) of the In18 ternal Revenue Code of 1986 for the cal19 endar year, determined by substituting 

20 ‘‘calendar year 2015’’ for ‘‘calendar year 

21 1992’’ in subparagraph (B) thereof. 

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

23 one or more States do not meet the requirements de24 scribed in subsection (d) for a calendar year, an 

25 amount equal to the State allocation percentage for 


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1 such State or States shall be distributed to each 

2 State which did meet such conditions in an amount 

3 equal to the product of— 

4 (A) such amount; and 

5 (B) the State allocation percentage of such 

6 State (determined by not taking into account 

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

8 State which did not meet the requirements of 

9 subsection (d) for such calendar year). 

10 (d) REQUIREMENTS FOR RECEIPT OF GRANT.— 

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

12 a cost mitigation grant for any calendar year if— 

13 (A) the chief executive officer of the State 

14 certifies that the State will use such grant as 

15 needed to deliver benefits to all eligible low-in16 come individuals through a household rebate 

17 program; 

18 (B) the State has filed with the Secretary 

19 of the Treasury a State plan covering the cal20 endar year which details the use of the funds 

21 received under the grant; 

22 (C) the State agrees to comply with any 

23 audit requirements under subsection (d); and 

24 (D) the State has complied with the re25 quirements of this section for all preceding 


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1 years or the State has remedied all prior non2 compliance to the satisfaction of the Secretary 

3 of the Treasury. 

4 (2) HOUSEHOLD REBATE PROGRAM.—For pur5 poses of paragraph (1)(A)— 

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

7 rebate program’’ means a program for deliv8 ering to monthly benefits in an aggregate an9 nual amount equal to the applicable amount to 

10 all eligible low-income individuals through a 

11 State-administered electronic benefit transfer 

12 system. 

13 (B) APPLICABLE AMOUNT.—The term 

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

15 eligible low-income individual for any calendar 

16 year, an amount equal to the excess of— 

17 (i) the amount in effect for taxable 

18 years ending with or within the preceding 

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

20 the Internal Revenue Code of 1986, over 

21 (ii) any amount allowed or claimed as 

22 a credit by such individual under such sec23 tion for the taxable year ending with or 

24 within the preceding calendar year. 


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1 (C) ELIGIBLE LOW-INCOME INDIVID2 UALS.—The term ‘‘eligible low-income indi3 vidual’’ means, with respect to any calendar 

4 year, any individual who— 

5 (i) has attained the age of 18 before 

6 the end of the calendar year; 

7 (ii) lives in a household that has a 

8 gross income that does not exceed 150 per9 cent of the poverty line as defined by sec10 tion 673(2) of the Community Services 

11 Block Grant Act; 

12 (iii) participates in a federally funded 

13 State administered assistance program or 

14 otherwise applies for such benefits under 

15 such a program; and 

16 (iv) for the month of December of the 

17 preceding calendar year, was not entitled 

18 to or eligible for a benefit payment de19 scribed in section 203(b). 

20 (D) COORDINATION RULES.—The Sec21 retary of the Treasury shall coordinate with the 

22 States and other applicable Federal agencies to 

23 identify eligible low-income individuals. 

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

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


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1 such uses comply with the requirements of this section and 

2 with the uses identified by the State under subsection 

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

4 section if the Secretary determines that a State has not 

5 complied with such requirements. 

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

7 ‘‘State’’ includes the District of Columbia, the Common8 wealth of Puerto Rico, Guam, American Samoa, and the 

9 United States Virgin Islands. 

10 (g) APPROPRIATIONS.—There are hereby appro11 priated such sums as necessary for making cost mitigation 

12 grants under this section. 

13 TITLE III—OTHER PROVISIONS 

14 SEC. 301. PUBLIC DISCLOSURE OF REVENUES AND EX15 PENDITURES. 

16 (a) ESTABLISHMENT OF WEBSITE.—The Secretary 

17 of the Treasury, or the Secretary’s designee, shall estab18 lish a website for purposes of making the disclosures de19 scribed in subsection (b). 

20 (b) DISCLOSURES.—The Secretary shall make pub21 licly available, on an ongoing basis and as frequently as 

22 possible, the following information: 

23 (1) The amount and sources of revenue attrib24 utable to this Act and the amendments made by this 

25 Act. 


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1 (2) The amount of tax savings and benefits re2 ceived as a result of title II of this Act. 

3 SEC. 302. SEVERABILITY. 

4 If any provision of this Act or amendment made by 

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

6 to any person or circumstance, is held to be unconstitu7 tional, the remainder of this Act and amendments made 

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

9 amendment to any person or circumstance, shall not be 

10 affected by the holding. 

Æ 


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