I 

118TH CONGRESS 

1ST SESSION H. R. 6665 

To amend the Internal Revenue Code of 1986 to eliminate certain fuel 

excise taxes and impose a tax on greenhouse gas emissions to provide 

revenue for maintaining and building American infrastructure, and for 

other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 7, 2023 

Mr. FITZPATRICK (for himself and Mr. CARBAJAL) introduced the following 

bill; which was referred to the Committee on Ways and Means, and in 

addition to the Committees on Energy and Commerce, Natural Resources, Education and the Workforce, Transportation and Infrastructure, Science, Space, and Technology, and Agriculture, for a period to be 

subsequently determined by the Speaker, in each case for consideration 

of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To amend the Internal Revenue Code of 1986 to eliminate 

certain fuel excise taxes and impose a tax on greenhouse 

gas emissions to provide revenue for maintaining and 

building American infrastructure, 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; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Modernizing America with Rebuilding to Kickstart the 


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1 Economy of the Twenty-first Century with a Historic In2 frastructure-Centered Expansion Act’’ or the ‘‘MARKET 

3 CHOICE Act’’. 

4 (b) TABLE OF CONTENTS.—The table of contents for 

5 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Findings. 

TITLE I—GREENHOUSE GAS EMISSIONS 

Sec. 101. Treatment of domestic greenhouse gas emissions. 

Sec. 102. Border greenhouse gas adjustments. 

TITLE II—DISTRIBUTION OF REVENUES FROM TAXATION OF 

GREENHOUSE GAS EMISSIONS 

Subtitle A—Rebuilding Infrastructure and Solutions for the Environment 

Trust Fund 

Sec. 201. Establishment of the RISE Trust Fund. 

Sec. 202. Appropriations from the RISE Trust Fund. 

Sec. 203. State grants. 

Subtitle B—Certain Manufacturers Excise Taxes 

Sec. 211. Repeal of Federal motor vehicle and aviation fuel taxes. 

Sec. 212. Modifications of qualifying advanced coal project credit. 

TITLE III—AMENDMENTS TO OTHER LAWS 

Subtitle A—Amendments to Federal Environmental Statutes 

Sec. 301. Amendments to the Clean Air Act. 

Sec. 302. Frequent and chronic flooding mitigation and adaptation infrastructure projects. 

Sec. 303. No preemption of State law. 

Subtitle B—Assistance to Displaced Workers in the Energy Sector 

Sec. 321. Assistance to displaced workers in the energy sector. 

TITLE IV—NATIONAL CLIMATE COMMISSION 

Sec. 401. Establishment of Commission. 

Sec. 402. Duties of Commission. 

Sec. 403. Powers of Commission. 

Sec. 404. Funding for the activities of the Commission. 

Sec. 405. Staff of the Commission. 

6 SEC. 2. FINDINGS. 

7 Congress finds that— 


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1 (1) roads, bridges, airports, and urban trans2 portation systems are essential to the economic and 

3 national security of the United States; 

4 (2) there is a chronic shortfall in funding for 

5 the maintenance of highways, bridges, and other 

6 critical infrastructure; 

7 (3) strategic investments in new infrastructure 

8 will allow for economic growth and dynamism in the 

9 21st century; 

10 (4) there has been a marked increase in ex11 treme weather events and the negative impacts of a 

12 changing climate are expected to worsen in every re13 gion of the United States; 

14 (5) if left unaddressed, the consequences of a 

15 changing climate have the potential to adversely im16 pact the health of all Americans, harm the economy, 

17 and impose substantial costs on local, State, and 

18 Federal budgets; 

19 (6) efforts to reduce climate risk should protect 

20 our Nation’s economy, security, infrastructure, agri21 culture, water supply, public health, and public safe22 ty; and 

23 (7) there is bipartisan support for pursuing ef24 forts to reduce greenhouse gas emissions through 


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1 economically viable, broadly supported private and 

2 public policies and solutions. 

3 TITLE I—GREENHOUSE GAS 

4 EMISSIONS 

5 SEC. 101. TREATMENT OF DOMESTIC GREENHOUSE GAS 

6 EMISSIONS. 

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

8 1986 is amended by adding at the end the following new 

9 subtitle: 

10 ‘‘Subtitle L—Greenhouse Gas 

11 Emissions 

12 ‘‘PART 1—TAXATION OF GREENHOUSE GAS 

13 EMISSIONS 

‘‘Sec. 9901. Imposition of tax on combusted fossil fuel greenhouse gas emissions. 

‘‘Sec. 9902. Imposition of tax on greenhouse gas emissions from certain industrial processes. 

‘‘Sec. 9903. Imposition of tax on greenhouse gas emissions from certain product uses. 

‘‘Sec. 9904. Calculation of taxable emissions. 

‘‘Sec. 9905. Credit for state payments. 

‘‘Sec. 9906. Penalties for nonpayment. 

‘‘Sec. 9907. Definitions. 

14 ‘‘SEC. 9901. IMPOSITION OF TAX ON COMBUSTED FOSSIL 

15 FUEL GREENHOUSE GAS EMISSIONS. 

16 ‘‘(a) IN GENERAL.—There is hereby imposed a tax 

17 on fossil fuels produced within, or imported into, the 

18 United States. 

19 ‘‘(b) RATE OF TAX.— 


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1 ‘‘(1) GREENHOUSE GASES THAT WOULD BE RE2 LEASED IF THE FOSSIL FUEL WERE COMBUSTED.— 

3 The tax imposed by subsection (a) shall be the appli4 cable amount per ton of carbon dioxide equivalent of 

5 all greenhouse gasses that would be released if the 

6 fossil fuel were combusted. 

7 ‘‘(2) APPLICABLE AMOUNT OF CARBON DIOXIDE

8 EQUIVALENT EMISSIONS.—For purposes of para9 graph (1), the term ‘applicable amount’ means— 

10 ‘‘(A) for calendar year 2025, $35 per met11 ric ton of carbon dioxide equivalent emissions, 

12 and 

13 ‘‘(B) for each calendar year after 2025, 

14 the tax rate shall be the sum of— 

15 ‘‘(i) the previous calendar year’s tax 

16 rate, plus 

17 ‘‘(ii) the sum of— 

18 ‘‘(I) 5 percentage points, plus 

19 ‘‘(II) a percentage increase in the 

20 previous year’s tax rate equal to the 

21 increase in the Consumer Price Index 

22 for the previous calendar year. 

23 ‘‘(3) CONSUMER PRICE INDEX FOR ANY CAL24 ENDAR YEAR.—For purposes of subparagraph (B), 

25 the Consumer Price Index for the previous calendar 


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1 year is the average of the Consumer Price Index for 

2 all-urban consumers published by the Department of 

3 Labor as of the close of the 12-month period ending 

4 on August 31 of such calendar year. For purposes 

5 of the preceding sentence, the revision of the Con6 sumer Price Index which is most consistent with the 

7 Consumer Price Index for calendar year 1986 shall 

8 be used. 

9 ‘‘(4) RATE ADJUSTMENT BASED ON EMISSION

10 LEVELS.— 

11 ‘‘(A) REPORT.—Not later than March 30, 

12 2026, and annually thereafter, the Secretary 

13 and the Administrator shall jointly report the 

14 emissions during the calendar year ending on 

15 the preceding December 31 from sources sub16 ject to taxation under this part. The report 

17 shall determine whether the cumulative amount 

18 of annual emissions reported for the period be19 ginning in calendar year 2025 and through the 

20 end of the preceding calendar year were less 

21 than the emissions levels specified in the fol22 lowing schedule: 

23 ‘‘(i) The total emissions through cal24 endar year 2025 are 4,700 million metric 

25 tons of carbon dioxide equivalent. 


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1 ‘‘(ii) The total emissions through cal2 endar year 2026 are 9,400 million metric 

3 tons of carbon dioxide equivalent. 

4 ‘‘(iii) The total emissions through cal5 endar year 2027 are 14,000 million metric 

6 tons of carbon dioxide equivalent. 

7 ‘‘(iv) The total emissions through cal8 endar year 2028 are 18,300 million metric 

9 tons of carbon dioxide equivalent. 

10 ‘‘(v) The total emissions through cal11 endar year 2029 are 22,600 million metric 

12 tons of carbon dioxide equivalent. 

13 ‘‘(vi) The total emissions through cal14 endar year 2030 are 26,800 million metric 

15 tons of carbon dioxide equivalent. 

16 ‘‘(vii) The total emissions through cal17 endar year 2031 are 31,000 million metric 

18 tons of carbon dioxide equivalent. 

19 ‘‘(viii) The total emissions through 

20 calendar year 2032 are 35,100 million 

21 metric tons of carbon dioxide equivalent. 

22 ‘‘(ix) The total emissions through cal23 endar year 2033 are 39,100 million metric 

24 tons of carbon dioxide equivalent. 


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1 ‘‘(x) The total emissions through cal2 endar year 2034 are 43,100 million metric 

3 tons of carbon dioxide equivalent. 

4 ‘‘(xi) The total emissions through cal5 endar year 2035 are 47,100 million metric 

6 tons of carbon dioxide equivalent. 

7 ‘‘(B) ADJUSTMENTS FOR REPORT PE8 RIOD.— 

9 ‘‘(i) IN GENERAL.—Not later than 

10 March 30, 2027, and every two years 

11 thereafter, the Secretary shall determine 

12 whether an adjustment is required in ac13 cordance with clause (ii). 

14 ‘‘(ii) PERIOD THROUGH 2036.—If the 

15 emission level reported under subpara16 graph (A) for calendar year 2026, and 

17 every second calendar year thereafter 

18 through calendar year 2036, exceeds the 

19 level for such calendar year specified in 

20 clauses (i) through (xi) of subparagraph 

21 (A), then the applicable amount under 

22 paragraph (2) for the calendar year begin23 ning on the next January 1 following the 

24 determination in clause (i) shall, after the 

25 increase under paragraph (2) for such next 


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1 calendar year, be increased by an addi2 tional $4 per metric ton. 

3 ‘‘(c) BY WHOM PAID.—The tax imposed by sub4 section (a) shall be paid by the owner of the fossil fuel 

5 at the point of taxation. 

6 ‘‘(d) POINT OF TAXATION.— 

7 ‘‘(1) For fossil fuels produced within the United 

8 States, the point of taxation shall be— 

9 ‘‘(A) for coal, the mine mouth or, for 

10 washed coal, the exit from the coal preparation 

11 and processing plant, 

12 ‘‘(B) for petroleum products, the exit point 

13 from the refinery, and 

14 ‘‘(C) for natural gas, the exit from the gas 

15 processing plant or, for natural gas that is not 

16 treated at a gas processing plant, the point of 

17 sale to the person who combusts the gas or in18 corporates it into a product that is not intended 

19 for combustion. 

20 ‘‘(2) For any fossil fuel imported into the 

21 United States, the point of taxation shall be the 

22 point at which it first enters the United States. 

23 ‘‘(e) EXEMPTIONS.— 

24 ‘‘(1) EXEMPTION FOR NONCOMBUSTIVE

25 USES.— 


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1 ‘‘(A) REFUND FOR REDUCTION OR ELIMI2 NATION OF EMISSIONS.—Any manufacturer of a 

3 product that incorporates a fossil fuel that has 

4 been taxed under this section who can dem5 onstrate to the Secretary that the fossil fuel has 

6 been transformed via the manufacture of the 

7 product so that the fossil fuel’s emissions will 

8 be reduced or eliminated over the product’s life9 time shall be entitled to a refund of the tax 

10 paid under this section on the proportion of the 

11 emissions reduced thereby, as determined by 

12 the Secretary. 

13 ‘‘(B) RULE.—The Secretary, in consulta14 tion with the Administrator, shall establish by 

15 rule the criteria and process by which product 

16 manufacturers can demonstrate that the condi17 tions in subparagraph (A) have been satisfied. 

18 ‘‘(C) PUBLICATION OF REGULATIONS.— 

19 The Secretary shall publish the regulations re20 quired by this subsection no later than one year 

21 prior to the start of the calendar year referred 

22 to in section 9901(b)(2)(A). The Secretary may 

23 not collect the tax imposed by this section for 

24 any calendar year that begins less than one 

25 year after the regulations are published. 


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1 ‘‘(2) EXEMPTION FOR CARBON CAPTURE AND

2 STORAGE.— 

3 ‘‘(A) REFUND FOR SEQUESTERS.—Any 

4 person who sequesters greenhouse gas emissions 

5 resulting from the combustion of fossil fuel that 

6 has passed through a point of taxation shall be 

7 entitled to a refund of the tax imposed by this 

8 section. Emissions that are used for enhanced 

9 oil recovery shall be entitled for such refund 

10 provided that these emissions meet all of the 

11 criteria applicable to other emissions that qual12 ify for such refund. 

13 ‘‘(B) RULE.—The Secretary shall establish 

14 by rule the procedures by which to apply for 

15 such refunds and such refunds shall be paid 

16 within six months of the Secretary receiving an 

17 approvable application. 

18 ‘‘(C) TIME OF REFUND.—The Secretary 

19 may not refund any amounts under this para20 graph until such time as the Secretary has pub21 lished the regulations described in section 

22 45Q(f)(2). 


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1 ‘‘SEC. 9902. IMPOSITION OF TAX ON GREENHOUSE GAS 

2 EMISSIONS FROM CERTAIN INDUSTRIAL 

3 PROCESSES. 

4 ‘‘(a) IN GENERAL.—There is hereby imposed a tax 

5 on industrial process greenhouse gas emissions by certain 

6 source categories. 

7 ‘‘(b) LIST OF SOURCE CATEGORIES.— 

8 ‘‘(1) INITIAL LIST.—The Congress establishes 

9 for purposes of this section a list of source cat10 egories subject to this section as follows: 

11 ‘‘(A) Iron and steel production and met12 allurgical coke production. 

13 ‘‘(B) Underground coal mining. 

14 ‘‘(C) Coal preparation and processing 

15 plants. 

16 ‘‘(D) Refineries. 

17 ‘‘(E) Cement production. 

18 ‘‘(F) Petrochemical production. 

19 ‘‘(G) Lime production. 

20 ‘‘(H) Ammonia production. 

21 ‘‘(I) Aluminum production. 

22 ‘‘(J) Soda ash production. 

23 ‘‘(K) Ferroalloy production. 

24 ‘‘(L) Phosphoric acid production. 

25 ‘‘(M) Glass production. 

26 ‘‘(N) Zinc production. 


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1 ‘‘(O) Lead production. 

2 ‘‘(P) Magnesium production and proc3 essing. 

4 ‘‘(Q) Nitric acid production. 

5 ‘‘(R) Adipic acid production. 

6 ‘‘(S) Semiconductor manufacture. 

7 ‘‘(T) Electrical transmission and distribu8 tion. 

9 ‘‘(2) REVISION OF THE LIST.—The Adminis10 trator shall review the list of source categories estab11 lished by this subsection not less than once every 

12 five years to determine if they should continue to be 

13 listed and publish the results of that review. The Ad14 ministrator may, if appropriate, add any source cat15 egories to this list by rule. 

16 ‘‘(3) REMOVAL OF A SOURCE CATEGORY FROM

17 THE LIST.—The Administrator may remove a source 

18 category from this list only if— 

19 ‘‘(A) the total emissions from the entire 

20 source category which are taxable under this 

21 section have been less than 250,000 metric tons 

22 of carbon dioxide equivalent per year for each 

23 of three consecutive years, 

24 ‘‘(B) the average emissions from facilities 

25 in the source category which are taxable under 


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1 this section have been less than 25,000 metric 

2 tons of carbon dioxide equivalent per year for 

3 each of the years referred in subparagraph (A), 

4 and 

5 ‘‘(C) the Administrator determines that 

6 there is no reasonable possibility that the total 

7 emissions from the entire source category which 

8 are taxable under this section will exceed 

9 250,000 metric tons per year of carbon dioxide 

10 equivalent within any of the five years following 

11 such determination. 

12 ‘‘(4) ADDITION OF A SOURCE CATEGORY TO

13 THE LIST.—The Administrator may add a source 

14 category to this list only if the Administrator deter15 mines that— 

16 ‘‘(A) the total emissions from the entire 

17 source category which are taxable under this 

18 section have been greater than 250,000 metric 

19 tons per year of carbon dioxide equivalent in 

20 any two years out of the preceding five years, 

21 ‘‘(B) the average emissions from facilities 

22 in the source category which are taxable under 

23 this section have been greater than 25,000 met24 ric tons per year of carbon dioxide equivalent in 

25 the years in which emissions from the entire 


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1 source category have been greater than 250,000 

2 tons per year, and 

3 ‘‘(C) there is a reasonable possibility that 

4 the total emissions from the entire source cat5 egory which are taxable under this section will 

6 be greater than 250,000 metric tons per year of 

7 carbon dioxide equivalent in any year within the 

8 next five years following such determination. 

9 ‘‘(c) RATE OF TAX.—The rate of tax shall be the 

10 same as the rate given in section 9901(b)(2). 

11 ‘‘(d) BY WHOM PAID.—The tax imposed by sub12 section (a) shall be paid by the owner or operator of the 

13 point of taxation. 

14 ‘‘(e) POINT OF TAXATION.—The point of taxation 

15 shall be any facility in a source category which emits more 

16 than 25,000 metric tons of carbon dioxide equivalent sub17 ject to taxation under this section in any calendar year. 

18 ‘‘SEC. 9903. IMPOSITION OF TAX ON GREENHOUSE GAS 

19 EMISSIONS FROM CERTAIN PRODUCT USES. 

20 ‘‘(a) IN GENERAL.—There is hereby imposed a tax 

21 on non-fossil-fuel-greenhouse-gas emissions by certain 

22 manufactured products when used for their intended pur23 poses that are manufactured within or imported into, the 

24 United States. 

25 ‘‘(b) LIST OF PRODUCTS.— 


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1 ‘‘(1) INITIAL LIST.—The Congress establishes 

2 for purposes of this section a list of products subject 

3 to this section as follows: 

4 ‘‘(A) Fuel ethanol. 

5 ‘‘(B) Industrial carbonates. 

6 ‘‘(C) Carbon dioxide urea. 

7 ‘‘(D) Soda ash. 

8 ‘‘(E) Nitrous oxide. 

9 ‘‘(F) Ozone depleting substances, but not 

10 if the United States has ratified the Kigali 

11 Amendment to the Montreal Protocol and is 

12 subject to Article 2J, paragraph 1 of the 

13 Amended Montreal Protocol. 

14 ‘‘(G) Biodiesel. 

15 ‘‘(H) Solid biomass fuels. 

16 ‘‘(2) REVISION OF THE LIST.—The Adminis17 trator shall review the list of products established by 

18 this subsection not less than once every five years to 

19 determine if they should continue to be listed and 

20 publish the results of that review. The Administrator 

21 may, if appropriate, add any product to this list by 

22 rule. 

23 ‘‘(3) REMOVAL OF A PRODUCT FROM THE

24 LIST.—The Administrator may remove a product 

25 from this list only if— 


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1 ‘‘(A) the total emissions from all of the 

2 product used within the United States has been 

3 less than 250,000 metric tons per year of car4 bon dioxide equivalent for each of three con5 secutive years, and 

6 ‘‘(B) the Administrator determines that 

7 there is no reasonable possibility that the total 

8 emissions from all of the product used in the 

9 United States will exceed 250,000 metric tons 

10 per year of carbon dioxide equivalent within any 

11 of the five years following such determination. 

12 ‘‘(4) ADDITION OF A PRODUCT TO THE LIST.— 

13 The Administrator may add a product to this list 

14 only if the Administrator determines that— 

15 ‘‘(A) the total emissions from all of the 

16 product used within the United States has been 

17 greater than 250,000 metric tons per year of 

18 carbon dioxide equivalent in any two years out 

19 of the preceding five years, and 

20 ‘‘(B) there is a reasonable possibility that 

21 the total emissions from all of the product used 

22 within the United States will be greater than 

23 250,000 metric tons per year of carbon dioxide 

24 equivalent in any year within the next five years 

25 following such determination. 


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1 ‘‘(c) RATE OF TAX.—The rate of tax shall be the 

2 same as the rate given in section 9901(b)(2). 

3 ‘‘(d) BY WHOM PAID.—The tax imposed by sub4 section (a) shall be paid— 

5 ‘‘(1) for products manufactured in the United 

6 States, by the owner or operator of the point of tax7 ation, and 

8 ‘‘(2) for products imported into the United 

9 States, by the owner of the product when it enters 

10 the United States. 

11 ‘‘(e) POINT OF TAXATION.—The point of taxation 

12 shall be— 

13 ‘‘(1) for products manufactured in the United 

14 States, the manufacturing facility, 

15 ‘‘(2) for products imported into the United 

16 States, the point at which it first enters the United 

17 States, and 

18 ‘‘(3) for domestically produced biomass fuel by 

19 a facility that emits from combusted biomass fuel 

20 more than 25,000 metric tons of carbon dioxide 

21 equivalent greenhouse gases in a year, the facility 

22 that combusts the biomass fuel. 

23 ‘‘SEC. 9904. CALCULATION OF TAXABLE EMISSIONS. 

24 ‘‘(a) HOW TO CALCULATE TAXABLE EMISSIONS.— 

25 In consultation with the Department of Energy, the AdVerDate Sep 11 2014 00:38 Dec 28, 2023 Jkt 049200 PO 00000 Frm 00018 Fmt 6652 Sfmt 6201 E:\BILLS\H6665.IH H6665

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1 ministrator shall establish by rule (and may, from time 

2 to time, revise) the method by which taxable emissions 

3 under this part shall be calculated. 

4 ‘‘(b) CATEGORIES AND SUBCATEGORIES CONSID5 ERED.—For purposes of calculating emissions taxable 

6 under— 

7 ‘‘(1) section 9901, the Administrator shall de8 termine by rule the amount of carbon dioxide equiv9 alent that would be emitted if each fossil fuel were 

10 combusted, and the Administrator may establish by 

11 rule such subcategories of each fuel and the means 

12 by which it is combusted as the Administrator deems 

13 appropriate, 

14 ‘‘(2) section 9902, the Administrator may de15 termine by rule such subcategories of any industrial 

16 process category listed in subsection 9902(b) as the 

17 Administrator deems appropriate, and 

18 ‘‘(3) section 9903, for fuel ethanol, biodiesel, 

19 and solid biomass fuels the Administrator shall de20 termine by rule the amount of carbon dioxide equiv21 alent that would be emitted based on the lifecycle 

22 greenhouse gas emissions of the product (excluding 

23 emissions from fossil fuels that have passed through 

24 a point of taxation), and the Administrator may de25 termine by rule such subcategories of manufactured 


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1 products listed in subsection 9903(b) as the Admin2 istrator deems appropriate. 

3 ‘‘(c) METHODS.—Where greenhouse gas emissions 

4 subject to taxation under any section of this part are com5 bined with greenhouse gas emissions subject to taxation 

6 under any other section of this part, the Administrator 

7 shall ensure, to the greatest degree possible, that the 

8 methods required to determine the emissions taxable 

9 under any section of this part do not include any emissions 

10 taxable under any other section of this part. 

11 ‘‘(d) METHOD COST DIFFERENCES.—The Adminis12 trator shall not require the use of any method to calculate 

13 taxable emissions whereby the difference in cost of the 

14 method compared to the next cheapest alternative method 

15 is greater than the amount of the tax that would be paid 

16 on the additional emissions determined by the more expen17 sive method. 

18 ‘‘(e) PUBLICATION OF REGULATIONS.—The Adminis19 trator shall publish the regulations required by this section 

20 no later than one year prior to the start of the calendar 

21 year referred to in section 9901(b)(2)(A). The Secretary 

22 may not collect the tax imposed by any section in this part 

23 for any calendar year that begins less than one year after 

24 the regulations applicable to each such section are pub25 lished. 


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1 ‘‘SEC. 9905. CREDIT FOR STATE PAYMENTS. 

2 ‘‘(a) CREDIT FOR PAYMENTS.—The Secretary shall 

3 allow any person who is required to make payment for 

4 greenhouse gas emissions under this part a credit for pay5 ments made on those emissions required under any State 

6 law in the following manner: 

7 ‘‘(1) For the year given in section 9901(b)(2), 

8 a credit equal to 100 percent of the amount paid 

9 pursuant to requirements of State law. 

10 ‘‘(2) For the first year following the year used 

11 in paragraph (1), a credit equal to 80 percent of the 

12 amount paid pursuant to requirements of State law. 

13 ‘‘(3) For the second year following the year 

14 used in paragraph (1), a credit equal to 60 percent 

15 of the amount paid pursuant to requirements of 

16 State law. 

17 ‘‘(4) For the third year following the year used 

18 in paragraph (1), a credit equal to 40 percent of the 

19 amount paid pursuant to requirements of State law. 

20 ‘‘(5) For the fourth year following the year 

21 used in paragraph (1), a credit equal to 20 percent 

22 of the amount paid pursuant to requirements of 

23 State law. 

24 ‘‘(b) NO CREDIT.—For all years following the year 

25 used in paragraph (5), no credit shall be allowed. 


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1 ‘‘SEC. 9906. PENALTIES FOR NONPAYMENT. 

2 ‘‘Any person who fails to comply with the require3 ments of section 9901, 9902, or 9903 shall be liable for 

4 payment to the Secretary, without demand, of a penalty 

5 in the amount equal to 3 times the applicable amount 

6 specified by those sections for the same tax year as the 

7 year in which the person failed to comply with such re8 quirements. 

9 ‘‘SEC. 9907. DEFINITIONS. 

10 ‘‘Unless otherwise provided, the definitions provided 

11 herein are applicable to all provisions of this subtitle. 

12 ‘‘(1) ADMINISTRATOR.—The term ‘Adminis13 trator’ means the Administrator of the Environ14 mental Protection Agency. 

15 ‘‘(2) CARDON DIOXIDE EQUIVALENT.—The 

16 term ‘carbon dioxide equivalent’ means the number 

17 of metric tons of CO2 emissions with the same global 

18 warming potential over a 100-year period as one 

19 metric ton of another greenhouse gas. 

20 ‘‘(3) COAL.—The term ‘coal’ means any of the 

21 recognized classifications and ranks of coal, includ22 ing anthracite, bituminous, semibituminous, subbitu23 minous, lignite, and peat. 

24 ‘‘(4) COAL PREPARATION AND PROCESSING

25 PLANT.—The term ‘coal preparation and processing 

26 plant’ means any facility (excluding underground 


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1 mining operations) which prepares coal by one or 

2 more of the following processes: breaking, crushing, 

3 screening, wet or dry cleaning, and thermal drying. 

4 ‘‘(5) ENHANCED OIL RECOVERY.—The term 

5 ‘enhanced oil recovery’ has the meaning defined at 

6 section 1.193–1(b)(2) of title 26, Code of Federal 

7 Regulations, as in effect on the date of enactment of 

8 this section. 

9 ‘‘(6) FACILITY.—The term ‘facility’ means any 

10 physical property, plant, building, structure, source, 

11 or stationary equipment located on one or more con12 tiguous or adjacent properties in actual physical con13 tact or separated solely by a public roadway or other 

14 public right-of-way and under common ownership or 

15 common control, that emits or may emit any green16 house gas. 

17 ‘‘(7) FOSSIL FUEL.—The term ‘fossil fuel’ 

18 means coal, petroleum products, or natural gas. 

19 ‘‘(8) GREENHOUSE GAS.—The term ‘greenhouse 

20 gas’ means carbon dioxide, nitrous oxide, methane, 

21 hydrofluorocarbons, perfluorocarbons, and sulfur 

22 hexafluoride. 

23 ‘‘(9) GREENHOUSE GAS EFFECTS.—The term 

24 ‘greenhouse gas effects’ means the adverse effects of 

25 greenhouse gasses on health or welfare caused by 


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1 the greenhouse gas’s heat-trapping potential or its 

2 effect on ocean acidification. 

3 ‘‘(10) LIFECYCLE GREENHOUSE GAS EMIS4 SIONS.—The term ‘lifecycle greenhouse gas emis5 sions’ has the meaning given that term in section 

6 211 of the Clear Air Act. 

7 ‘‘(11) NATURAL GAS.—The term ‘natural gas’ 

8 means any fuel consisting in whole or in part of nat9 ural gas, including components of natural gas such 

10 as methane and ethane; liquid petroleum gas; syn11 thetic gas derived from coal, petroleum, or natural 

12 gas liquids; or any mixture of natural gas and syn13 thetic gas. 

14 ‘‘(12) PETROLEUM PRODUCTS.—The term ‘pe15 troleum products’ means unfinished oils, liquefied 

16 petroleum gases, pentanes plus, aviation gasoline, 

17 motor gasoline, naphtha-type jet fuel, kerosene-type 

18 jet fuel, kerosene, distillate fuel oil, residual fuel oil, 

19 petrochemical feedstocks, special naphthas, lubri20 cants, waxes, petroleum coke, asphalt, road oil, still 

21 gas, and miscellaneous products obtained from the 

22 processing of crude oil (including lease condensate), 

23 natural gas, and other hydrocarbon compounds. The 

24 term does not include natural gas, liquefied natural 


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1 gas, biofuels, methanol, and other nonpetroleum 

2 fuels. 

3 ‘‘(13) PUBLISH.—The term ‘publish’ means 

4 publication in the Federal Register. 

5 ‘‘(14) REFINERY.—The term ‘refinery’ means 

6 any facility engaged in producing gasoline, kerosene, 

7 distillate fuel oils, residual fuel oils, lubricants, or 

8 other products through distillation of petroleum or 

9 through redistillation, cracking, or reforming of un10 finished petroleum derivatives. 

11 ‘‘(15) OWNER.—The term ‘owner’ with respect 

12 to any fossil fuel means any person who has legal 

13 title to the fossil fuel. 

14 ‘‘(16) OWNER OR OPERATOR.—The term ‘owner 

15 or operator’ with respect to any fossil fuel means 

16 any person who has legal title to the fossil fuel. 

17 ‘‘(17) SEQUESTERS.—The term ‘sequesters’ 

18 means the permanent storage of carbon dioxide or 

19 other greenhouse gas such that it does not escape 

20 into the atmosphere, and is in compliance with the 

21 regulations issued pursuant to section 45Q(f)(2). 

22 ‘‘(18) SOLID BIOMASS.—The term ‘solid bio23 mass’ means nonfossilized and biodegradable organic 

24 material originating from plants, animals, or micro25 organisms, including products, byproducts, residues 


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1 and waste from agriculture, forestry, and related in2 dustries as well as the nonfossilized and biodegrad3 able organic fractions of industrial and municipal 

4 wastes, but does not include gases and liquids recov5 ered from the decomposition of nonfossilized and 

6 biodegradable organic material. 

7 ‘‘(19) SOURCE CATEGORY.—The term ‘source 

8 category’ means any category or subcategory regu9 lated under part 60 of title 40, Code of Federal Reg10 ulations, or part 90 of title 40, Code of Federal Reg11 ulations.’’. 

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

13 for the Internal Revenue Code of 1986 is amended by add14 ing at the end the following new item: 

15 ‘‘Subtitle L—Greenhouse Gas 

16 Emissions’’. 

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

18 this section shall apply to emissions after the later of De19 cember 31, 2023, and the date that is one year after the 

20 date regulations are promulgated under section 9914 of 

21 the Internal Revenue Code of 1986. 

22 SEC. 102. BORDER GREENHOUSE GAS ADJUSTMENTS. 

23 (a) IN GENERAL.—Subtitle L of the Internal Rev24 enue Code of 1986, as added by subsection (a), is further 

25 amended by adding at the end the following new part: 


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1 ‘‘PART 2—TAX ADJUSTMENTS FOR IMPORTS AND 

2 EXPORTS OF GREENHOUSE GAS INTENSIVE 

3 PRODUCTS 

‘‘Sec. 9911. Purposes. 

‘‘Sec. 9912. Definitions. 

‘‘Sec. 9913. Notification of foreign countries. 

‘‘Sec. 9914. Border tax adjustment rate. 

4 ‘‘SEC. 9911. PURPOSES. 

5 ‘‘(a) PURPOSES OF PART.—The purposes of this part 

6 are— 

7 ‘‘(1) to promote a strong global effort to signifi8 cantly reduce greenhouse gas emissions, and 

9 ‘‘(2) to prevent carbon leakage. 

10 ‘‘(b) ADDITIONAL PURPOSES OF PART.—The pur11 poses of this part are additionally— 

12 ‘‘(1) to provide a rebate to exporters in domes13 tic eligible industrial sectors for the greenhouse gas 

14 emission costs of the owners and operators incurred 

15 under this title, but not for costs associated with 

16 other related or unrelated market dynamics, 

17 ‘‘(2) to ensure that imports from other coun18 tries, and, in particular, fast-growing developing 

19 countries, do not enjoy competitive advantages be20 cause of the carbon tax liability of domestic manu21 facturers, and therefore increase their emissions, 


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1 ‘‘(3) to encourage foreign countries to take sub2 stantial action with respect to their greenhouse gas 

3 emissions, and 

4 ‘‘(4) to ensure that the measures described in 

5 this subpart are designed and implemented in a 

6 manner consistent with applicable international 

7 agreements to which the United States is a party. 

8 ‘‘SEC. 9912. DEFINITIONS. 

9 ‘‘In this part: 

10 ‘‘(1) CARBON LEAKAGE.—The term ‘carbon 

11 leakage’ means any substantial increase (as deter12 mined by the Secretary) in greenhouse gas emissions 

13 by entities located in other countries caused by a 

14 cost of production increase in the United States re15 sulting from implementation of this title. 

16 ‘‘(2) BORDER TAX ADJUSTMENT.—The term 

17 ‘border tax adjustment’ means the levying of a tax 

18 on imported covered goods equivalent to the amount 

19 of tax paid pursuant to part 1 of this subtitle in the 

20 manufacture of comparable domestic manufactured 

21 goods, and the rebating of the tax paid pursuant to 

22 part 1 of this subtitle that has been paid on covered 

23 goods exported from the United States. 

24 ‘‘(3) BORDER TAX ADJUSTMENT RATE.—The 

25 term ‘border tax adjustment rate’ means the amount 


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1 of tax that would be paid on a covered good pro2 duced in the United States in the current year. 

3 ‘‘(4) COMMISSIONER.—The term ‘Commis4 sioner’ means the Commissioner of United States 

5 Customs and Border Protection. 

6 ‘‘(5) COVERED GOOD.—The term ‘covered good’ 

7 means a good that is— 

8 ‘‘(A) entered under a heading or sub9 heading of the Harmonized Tariff Schedule of 

10 the United States that corresponds to the 

11 NAICS code for an eligible industrial sector, as 

12 established in the concordance between NAICS 

13 codes and the Harmonized Tariff Schedule of 

14 the United States prepared by the United 

15 States Census Bureau, or 

16 ‘‘(B) a manufactured item for consump17 tion. 

18 ‘‘(6) ELIGIBLE INDUSTRIAL SECTOR.—The 

19 term ‘eligible industrial sector’ means an industrial 

20 sector determined by the Secretary under section 

21 9913. 

22 ‘‘(7) INDUSTRIAL SECTOR.—The term ‘indus23 trial sector’ means any sector that— 

24 ‘‘(A) is in the manufacturing sector (as de25 fined in NAICS codes 31, 32, and 33), or 


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1 ‘‘(B) is part of, or an entire, sector that 

2 beneficiates or otherwise processes (including 

3 agglomeration) metal ores, including iron and 

4 copper ores, soda ash, and phosphate. The term 

5 ‘industrial sector’ does not include any part of 

6 a sector that extracts fossil fuels, metal ores, 

7 soda ash, or phosphate. 

8 ‘‘(8) MANUFACTURED ITEM FOR CONSUMP9 TION.—The term ‘manufactured item for consump10 tion’ means any good— 

11 ‘‘(A) that includes in substantial quantities 

12 one or more goods like the goods produced by 

13 an eligible industrial sector, and 

14 ‘‘(B) for which the Secretary has deter15 mined, with the concurrence of the Commis16 sioner, that the application of the border tax 

17 adjustment program pursuant to this part is 

18 technically and administratively feasible and ap19 propriate to achieve the purposes of this part, 

20 taking into account the greenhouse gas inten21 sity, and where appropriate the trade intensity, 

22 of the industrial sector that produces the good, 

23 as measured consistent with section 9913 and 

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1 creases in the marketplace and other appro2 priate factors. 

3 ‘‘(9) NAICS.—The term ‘NAICS’ means the 

4 North American Industrial Classification System of 

5 2002. 

6 ‘‘(10) OUTPUT.—The term ‘output’ means the 

7 total tonnage or other standard unit of production 

8 (as determined by the Secretary) produced by an en9 tity in an industrial sector. 

10 ‘‘SEC. 9913. NOTIFICATION OF FOREIGN COUNTRIES. 

11 ‘‘(a) IN GENERAL.—As soon as practicable after the 

12 date of the enactment of the Modernizing America with 

13 Rebuilding to Kickstart the Economy of the Twenty-first 

14 Century with a Historic Infrastructure-Centered Expan15 sion Act, the President shall notify each foreign country— 

16 ‘‘(1) requesting the foreign country to take ap17 propriate measures to limit the greenhouse gas emis18 sions of the foreign country, and 

19 ‘‘(2) indicating that a border tax adjustment 

20 may apply to covered goods imported into and ex21 ported from the United States. 

22 ‘‘(b) LISTS.— 

23 ‘‘(1) IN GENERAL.—Not later than 1 year after 

24 the date of the enactment of the Modernizing Amer25 ica with Rebuilding to Kickstart the Economy of the 


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1 Twenty-first Century with a Historic Infrastructure2 Centered Expansion Act, the Secretary shall promul3 gate a rule designating, based on the criteria under 

4 subsection (c)(2), industrial sectors where covered 

5 products are liable for the border tax adjustment. 

6 ‘‘(2) CONTENT.—The list shall include the 

7 amount of the border tax adjustment rate for each 

8 covered good in the following calendar year pursuant 

9 to section 9914. 

10 ‘‘(3) SUBSEQUENT LISTS.—Not later than Jan11 uary 31 of each calendar year after the calendar 

12 year in which the Modernizing America with Re13 building to Kickstart the Economy of the Twenty14 first Century with a Historic Infrastructure-Cen15 tered Expansion Act is enacted, the Secretary shall 

16 publish in the Federal Register an updated version 

17 of the list published under paragraph (1). 

18 ‘‘(c) ELIGIBLE INDUSTRIAL SECTORS.— 

19 ‘‘(1) PRESUMPTIVELY ELIGIBLE INDUSTRIAL

20 SECTORS.— 

21 ‘‘(A) ELIGIBILITY CRITERIA.— 

22 ‘‘(i) IN GENERAL.— 

23 ‘‘(I) Imported covered goods are 

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1 dustrial sector that is included in a 6- 

2 digit classification of the NAICS that 

3 meets the criteria in both clauses (ii) 

4 and (iii). 

5 ‘‘(II) Exported covered goods are 

6 eligible under this part if they are 

7 produced in the United States in an 

8 industrial sector that is included in a 

9 6-digit classification of the NAICS 

10 that meets the criteria in clauses (ii) 

11 and (iii). 

12 ‘‘(ii) GREENHOUSE GAS INTENSITY.— 

13 As determined by the Secretary, an indus14 trial sector meets the criteria of this clause 

15 if the United States industrial sector has a 

16 greenhouse gas intensity of at least 5 per17 cent, calculated by dividing— 

18 ‘‘(I) the number of metric tons of 

19 carbon dioxide equivalent greenhouse 

20 gas emissions (including direct emis21 sions from fuel combustion, process 

22 emissions, and indirect emissions from 

23 the generation of electricity used to 

24 produce the output of the sector) of 

25 the sector based on data described in 


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1 subparagraph (C), multiplied by the 

2 applicable rate in section 9901(b)(2), 

3 by 

4 ‘‘(II) the value of the shipments 

5 of the sector, based on data described 

6 in subparagraph (C). 

7 ‘‘(iii) TRADE INTENSITY.—As deter8 mined by the Secretary, an industrial sec9 tor meets the criteria of this clause if the 

10 industrial sector has a trade intensity of at 

11 least 15 percent, calculated by dividing— 

12 ‘‘(I) the value of the total im13 ports and exports of the sector, by 

14 ‘‘(II) the value of the shipments 

15 plus the value of imports of the sec16 tor, based on data described in sub17 paragraph (C). 

18 ‘‘(B) METAL AND PHOSPHATE PRODUC19 TION CLASSIFIED UNDER MORE THAN ONE

20 NAICS CODE.—For purposes of this section, the 

21 Secretary shall— 

22 ‘‘(i) aggregate data for the 

23 beneficiation or other processing (including 

24 agglomeration) of metal ores, including 

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1 phate with subsequent steps in the process 

2 of metal and phosphate manufacturing, re3 gardless of the NAICS code under which 

4 the activity is classified, and 

5 ‘‘(ii) aggregate data for the manufac6 turing of steel with the manufacturing of 

7 steel pipe and tube made from purchased 

8 steel in a nonintegrated process. 

9 ‘‘(C) DATA SOURCES.— 

10 ‘‘(i) VALUE OF SHIPMENTS.— 

11 ‘‘(I) IN GENERAL.—The Sec12 retary shall determine the value of 

13 shipments under this subsection from 

14 data from the United States Census 

15 Annual Survey of Manufacturers. 

16 ‘‘(II) AVERAGE DATA AVAIL17 ABLE.—The Secretary shall use the 

18 average of data from the most recent 

19 3 years for which the data are avail20 able. 

21 ‘‘(III) AVERAGE DATA NOT

22 AVAILABLE.—If data described in sub23 clause (II) are unavailable, the Sec24 retary shall make a determination 

25 based on— 


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1 ‘‘(aa) data from the most 

2 detailed industrial classification 

3 level of the Manufacturing En4 ergy Consumption Survey of the 

5 Energy Information Administra6 tion, and 

7 ‘‘(bb) data from the most re8 cent Economic Census of the 

9 United States. 

10 ‘‘(IV) DATA NOT AVAILABLE FOR

11 SECTOR.—If data from the Manufac12 turing Energy Consumption Survey or 

13 Economic Census are unavailable for 

14 any sector at the 6-digit classification 

15 level in the NAICS, the Secretary may 

16 use available Manufacturing Energy 

17 Consumption Survey or Economic 

18 Census data pertaining to a broader 

19 industrial category classified in the 

20 NAICS. 

21 ‘‘(V) DATA NOT AVAILABLE FOR

22 PROCESSING.—If data relating to the 

23 beneficiation or other processing (in24 cluding agglomeration) of metal ores 

25 (including iron and copper ores, soda 


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1 ash, or phosphate) are not available 

2 from the specified data sources, the 

3 Secretary— 

4 ‘‘(aa) shall use the best 

5 available Federal or State gov6 ernment data, and 

7 ‘‘(bb) may use, to the extent 

8 necessary, representative data 

9 submitted by entities that per10 form the beneficiation or other 

11 processing (including agglomer12 ation), in making a determina13 tion. 

14 ‘‘(ii) IMPORTS AND EXPORTS.— 

15 ‘‘(I) IN GENERAL.—The Sec16 retary shall base the value of imports 

17 and exports under this subsection on 

18 United States International Trade 

19 Commission data. 

20 ‘‘(II) AVERAGE DATA AVAIL21 ABLE.—The Secretary shall use the 

22 average of data from the three most 

23 recent years for which the data are 

24 available. 


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1 ‘‘(III) AVERAGE DATA NOT

2 AVAILABLE.—If data from the United 

3 States International Trade Commis4 sion are unavailable for any sector at 

5 the 6-digit classification level in the 

6 NAICS, the Secretary may use United 

7 States International Trade Commis8 sion data pertaining to a broader in9 dustrial category classified in the 

10 NAICS. 

11 ‘‘(iii) PERCENTAGES.—The Secretary 

12 shall round the greenhouse gas intensity 

13 and trade intensity percentages under sub14 paragraph (A) to the nearest whole num15 ber. 

16 ‘‘(iv) GREENHOUSE GAS EMISSION

17 CALCULATIONS.—When calculating the 

18 metric tons of carbon dioxide equivalent 

19 greenhouse gas emissions for each sector 

20 under subparagraph (A)(ii)(I), the Sec21 retary— 

22 ‘‘(I) shall use the best available 

23 data from the three most recent years 

24 for which the data are available, and 


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1 ‘‘(II) may, to the extent nec2 essary with respect to a sector, use 

3 economic and engineering models and 

4 the best available information on tech5 nology performance levels for the sec6 tor. 

7 ‘‘(2) ADMINISTRATIVE DETERMINATION OF AD8 DITIONAL ELIGIBLE INDUSTRIAL SECTORS.— 

9 ‘‘(A) UPDATED TRADE INTENSITY DATA.— 

10 The Secretary shall designate as liable for the 

11 border tax adjustment rate on imported prod12 ucts under this part an industrial sector that— 

13 ‘‘(i) met the greenhouse gas intensity 

14 criteria in paragraph (1)(A)(ii) as of the 

15 date of promulgation of the rule under 

16 paragraph (1), and 

17 ‘‘(ii) meets the trade intensity criteria 

18 established under paragraph (1)(A)(iii), 

19 using data sources described in paragraph 

20 (1)(C) from any year after the passage of 

21 this Act. 

22 ‘‘(B) INDIVIDUAL SHOWING PETITION.— 

23 ‘‘(i) PETITION.—In addition to des24 ignation under subparagraph (A), the 

25 owner or operator of an entity or a group 


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1 of entities that collectively produce not less 

2 than 80 percent of the average annual 

3 value of shipments from within the sector 

4 of the group consistent with subclause (I), 

5 that manufacture similar products in an 

6 industrial sector may petition the Sec7 retary to designate as eligible industrial 

8 sectors under this part an entity or a 

9 group of entities that— 

10 ‘‘(I) represent a sector using a 

11 standard product classification, and 

12 ‘‘(II) meet the respective import 

13 and/or export eligibility criteria in 

14 paragraph (1)(A)(i). 

15 ‘‘(ii) DATA.—In making a determina16 tion under this subparagraph, the Sec17 retary shall consider— 

18 ‘‘(I) data submitted by the peti19 tioner, 

20 ‘‘(II) data solicited by the Sec21 retary from other entities in the sec22 tor, and 

23 ‘‘(III) data specified in para24 graph (1)(C). 


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1 ‘‘(iii) BASIS OF SUBSECTOR DETER2 MINATION.— 

3 ‘‘(I) IN GENERAL.—Except as 

4 provided in subclause (II), the Sec5 retary shall determine an entity or 

6 group of entities to be a subsector of 

7 a 6-digit section of the NAICS code 

8 based only on the products manufac9 tured and not the industrial process 

10 by which the products are manufac11 tured. 

12 ‘‘(II) TYPE OF MATERIAL.—The 

13 Secretary may determine an entity or 

14 group of entities that manufacture a 

15 product from primarily virgin material 

16 to be a separate subsector from an17 other entity or group of entities that 

18 manufacture the same product pri19 marily from recycled material. 

20 ‘‘(iv) USE OF MOST RECENT DATA.— 

21 In determining whether to designate a sec22 tor or subsector as an eligible industrial 

23 sector under this subparagraph, the Sec24 retary shall use the most recent data avail25 able from the sources described in paraVerDate Sep 11 2014 00:38 Dec 28, 2023 Jkt 049200 PO 00000 Frm 00041 Fmt 6652 Sfmt 6201 E:\BILLS\H6665.IH H6665

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1 graph (1)(C), rather than the data from 

2 the years specified in paragraph (1)(C), to 

3 determine the trade intensity of the sector 

4 or subsector, but only for determining the 

5 trade intensity. 

6 ‘‘(v) FINAL ACTION.—The Secretary 

7 shall take final action on a petition de8 scribed in this subparagraph not later than 

9 180 days after the date the completed peti10 tion is received by the Secretary. 

11 ‘‘(3) CESSATION OF QUALIFYING ACTIVITIES.— 

12 If, as determined by the Secretary, an industrial sec13 tor or a covered good within the sector is no longer 

14 liable to be designated under this section, the Com15 missioner shall cease to apply the border tax adjust16 ment on the relevant covered goods with effect from 

17 January 1 of the following year. 

18 ‘‘SEC. 9914. BORDER TAX ADJUSTMENT RATE. 

19 ‘‘(a) ESTABLISHMENT.—The Secretary, with the con20 currence of the Commissioner, shall, no later than the date 

21 that is one year after the date of the enactment of this 

22 section, promulgate regulations— 

23 ‘‘(1) establishing the products which are liable 

24 for, and requiring payment of, the border tax adjust25 ment rate, 


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1 ‘‘(2) establishing a general methodology for cal2 culating the level of the border tax adjustment rate 

3 that a domestic importer of any covered good must 

4 submit and the rebate that an exporter will receive, 

5 ‘‘(3) establishing an administrative process 

6 whereby any determination by the Secretary under 

7 this subsection may be appealed, 

8 ‘‘(4) exempting from this section products that 

9 originate from— 

10 ‘‘(A) any country that the United Nations 

11 has identified as among the least developed of 

12 developing countries, or 

13 ‘‘(B) any country that the President has 

14 determined to be responsible for less than 0.5 

15 percent of total global greenhouse gas emissions 

16 and less than 5 percent of global production in 

17 the eligible industrial sector, 

18 ‘‘(5) specifying the procedures that the Com19 missioner will apply for the declaration and entry of 

20 covered goods with respect to the eligible industrial 

21 sector into the customs territory of the United 

22 States, and 

23 ‘‘(6) establishing procedures that prevent cir24 cumvention of the carbon tax liability for covered 


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1 goods that are manufactured or processed in more 

2 than one foreign country. 

3 ‘‘(b) PRESIDENTIAL DISCRETION.—The President 

4 may elect not to levy the border tax adjustment for an 

5 eligible industrial sector or for specific products within 

6 that sector if the President determines and certifies to 

7 Congress that the program would not be in the national 

8 interest, economic interest, or environmental interest of 

9 the United States.’’. 

10 (b) EFFECTIVE DATE.—The amendments made by 

11 this section shall apply to emissions after the later of De12 cember 31, 2023, and the date that is one year after the 

13 date regulations are promulgated under section 9914 of 

14 the Internal Revenue Code of 1986. 

15 TITLE II—DISTRIBUTION OF 

16 REVENUES FROM TAXATION 

17 OF GREENHOUSE GAS EMIS18 SIONS 

19 Subtitle A—Rebuilding Infrastruc20 ture and Solutions for the Envi21 ronment Trust Fund 

22 SEC. 201. ESTABLISHMENT OF THE RISE TRUST FUND. 

23 There is hereby created in the Treasury of the United 

24 States a trust fund to be known as the ‘‘Rebuilding Infra25 structure and Solutions for the Environment Trust Fund’’ 


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1 (hereafter in this Act referred to as the ‘‘RISE Trust 

2 Fund’’), consisting of amounts paid into the Treasury pur3 suant to subtitle L of the Internal Revenue Code of 1986 

4 (as added by title I of this Act), and 75 percent of such 

5 amounts are hereby appropriated and transferred to the 

6 RISE Trust Fund. 

7 SEC. 202. APPROPRIATIONS FROM THE RISE TRUST FUND. 

8 (a) IN GENERAL.—Amounts in the RISE Trust 

9 Fund for a fiscal year shall be available, as provided by 

10 appropriation Acts, as follows: 

11 (1) 70 percent for each of the fiscal years 2025 

12 through 2034 to the Highway Trust Fund. 

13 (2) 1.5 percent for each of the fiscal years 2025 

14 through 2034 for the weatherization program devel15 oped under part A of title IV of the Energy Con16 servation and Production Act (42 U.S.C. 6861 et 

17 seq.). 

18 (3) 3 percent for each of the fiscal years 2025 

19 through 2034 for assistance for displaced energy 

20 workers under section 321. 

21 (4) 2.5 percent for each of the fiscal years 2025 

22 through 2034 to the Airport and Airway Trust Fund 

23 under section 9502 of the Internal Revenue Code of 

24 1986. 


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1 (5) 0.1 percent for each of the fiscal years 2025 

2 through 2034 to the Leaking Underground Storage 

3 Trust Fund under section 9508 of the Internal Rev4 enue Code of 1986. 

5 (6) 1.5 percent for each of the fiscal years 2025 

6 through 2034 to the Abandoned Mine Reclamation 

7 Fund under section 401 of the Surface Mining Con8 trol and Reclamation Act of 1977 (30 U.S.C. 1231). 

9 (7) 4 percent for each of the fiscal years 2025 

10 through 2034 for frequent and chronic coastal flood11 ing mitigation and adaptation infrastructure projects 

12 under section 302. 

13 (8) 1.5 percent for each of the fiscal years 2025 

14 through 2034 for Advanced Research Projects Agen15 cy-Energy under section 5012 of the America COM16 PETES Act (42 U.S.C. 16538). 

17 (9) 0.7 percent for each of the fiscal years 2025 

18 through 2034 for the Carbon Capture Research and 

19 Development Program of the National Energy Tech20 nology Laboratory, Office of Fossil Energy, Depart21 ment of Energy. 

22 (10) 0.5 percent for each of the fiscal years 

23 2025 through 2034 for assistance for Carbon Stor24 age DOE Fossil Energy Research, Development, and 


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1 Demonstration Program Areas, Coal Program Area 

2 (Carbon Storage). 

3 (11) 0.5 percent for each of the fiscal years 

4 2025 through 2034 for assistance to the National 

5 Energy Technology Laboratory of the Office of Fos6 sil Energy for the research and development of car7 bon removal technologies. 

8 (12) 0.3 percent for each of the fiscal years 

9 2025 through 2034 to the Secretary of Energy for 

10 research and development to identify and assess 

11 novel uses for carbon oxides, including the conver12 sion of carbon dioxide for commercial and industrial 

13 products, such as chemicals, plastics, building mate14 rials, fuels, cement, products of coal use in power 

15 systems or other applications, or other products with 

16 demonstrated market value. 

17 (13) 0.2 percent for each of the fiscal years 

18 2025 through 2034 to the Secretary of Energy to 

19 provide grants to entities constructing common car20 rier pipeline infrastructure to transport anthropo21 genic carbon dioxide for the incremental cost of pro22 viding extra capacity for future carbon dioxide trans23 port needs. 

24 (14) 0.5 percent for each of the fiscal years 

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1 lating to energy storage by battery through the Of2 fice of Electricity, Department of Energy. 

3 (15) 10 percent for each of the fiscal years 

4 2025 through 2034 for State grants under section 

5 203. 

6 (16) 1 percent for each of the fiscal years 2025 

7 through 2034 to the Reforestation Trust Fund (16 

8 U.S.C. 1606a). 

9 (17) 0.1 percent for each of the fiscal years 

10 2025 through 2034 for assistance through coopera11 tive agreements to decrease the environmental im12 pact of energy-related activities pursuant to section 

13 931 of the Energy Policy Act of 2005 (42 U.S.C. 

14 16231). 

15 (18) 1.6 percent for each of the fiscal years 

16 2025 through 2034 for the environmental quality in17 centives program under chapter 4 of subtitle D of 

18 title XII of the Food Security Act of 1985 (16 

19 U.S.C. 3839aa et seq.) for payments to producers to 

20 implement practices that promote improvements 

21 identified in subparagraphs (A) and (C) of section 

22 1240B(d)(3) of such Act (16 U.S.C. 3839aa–2). 

23 (19) 0.5 percent for each of fiscal years 2025 

24 through 2034 for the regional conservation partner25 ship program under section 1271 of the Food SecuVerDate Sep 11 2014 00:38 Dec 28, 2023 Jkt 049200 PO 00000 Frm 00048 Fmt 6652 Sfmt 6201 E:\BILLS\H6665.IH H6665

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1 rity Act of 1985 (16 U.S.C. 3871) for eligible activi2 ties on eligible land through partnership agreements 

3 with eligible partners and contracts with producers 

4 that address one of the following goals: 

5 (A) Soil health. 

6 (B) Nutrient management. 

7 (C) Forest restoration. 

8 (D) Reduction of methane emissions. 

9 (E) Other related activities that the Sec10 retary determines will help achieve conservation 

11 benefits and increase carbon sequestration or 

12 reduce greenhouse gas emissions. 

13 (b) CARBON REMOVAL.—For purposes of subsection 

14 (a)(11), the term ‘‘carbon removal technologies’’ includes: 

15 (1) Direct air capture and storage technologies, 

16 which shall not include any equipment which cap17 tures carbon dioxide which is deliberately released 

18 from naturally occurring subsurface springs or using 

19 natural photosynthesis. 

20 (2) Bioenergy with carbon capture and seques21 tration. 

22 (3) Enhanced geological weathering. 

23 (4) Agricultural and grazing practices. 

24 (5) Forest management and afforestation. 


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1 (6) Planned or managed carbon sinks, including 

2 natural and artificial. 

3 (c) WAGE RATE REQUIREMENTS.—Notwithstanding 

4 any other provision of law and in a manner consistent with 

5 other provisions in this Act, all laborers and mechanics 

6 employed by contractors and subcontractors on projects 

7 funded directly by or assisted in whole or in part by and 

8 through the Federal Government pursuant to this Act 

9 shall be paid wages at rates not less than those prevailing 

10 on projects of a character similar in the locality as deter11 mined by the Secretary of Labor in accordance with sub12 chapter IV of chapter 31 of title 40, United States Code. 

13 With respect to the labor standards specified in this sec14 tion, the Secretary of Labor shall have the authority and 

15 functions set forth in Reorganization Plan Numbered 14 

16 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 

17 of title 40, United States Code. 

18 (d) CONFORMING AMENDMENTS.— 

19 (1) LEAKING UNDERGROUND STORAGE TANK

20 TRUST FUND.—Section 9508(b) of the Internal Rev21 enue Code of 1986 is amended— 

22 (A) by striking ‘‘and’’ at the end of para23 graph (3), 

24 (B) by striking the period at the end of 

25 paragraph (4) and inserting ‘‘, and’’, and 


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1 (C) by inserting after paragraph (4) the 

2 following: 

3 ‘‘(5) amounts made available to the Leaking 

4 Underground Storage Tank Trust Fund from the 

5 RISE Trust Fund under section 202(a)(5) of the 

6 Modernizing America with Rebuilding to Kickstart 

7 the Economy of the Twenty-first Century with a 

8 Historic Infrastructure-Centered Expansion Act.’’. 

9 (2) REFORESTATION TRUST FUND.— 

10 (A) SOURCE OF FUNDS.—Section 303(a) 

11 of the Act of October 14, 1980 (16 U.S.C. 

12 1606a(a)) is amended by striking ‘‘subsection 

13 (b)(1)’’ and inserting ‘‘paragraph (1) or (4) of 

14 subsection (b)’’. 

15 (B) SPECIAL RULE RELATING TO LIMITA16 TION.—Section 303(b) of the Act of October 

17 14, 1980 (16 U.S.C. 1606a(b)) is amended— 

18 (i) in paragraph (2) by inserting 

19 ‘‘under paragraph (1)’’ after ‘‘The Sec20 retary of the Treasury shall transfer’’, and 

21 (ii) by adding at the end the fol22 lowing: 

23 ‘‘(4) Not later than 9 months after the enact24 ment of the Modernizing America with Rebuilding to 

25 Kickstart the Economy of the Twenty-first Century 


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1 with a Historic Infrastructure-Centered Expansion 

2 Act, the Secretary shall transfer to the Trust Fund 

3 the amounts made available under section 

4 202(a)(13) of such Act.’’. 

5 SEC. 203. STATE GRANTS. 

6 (a) IN GENERAL.—From amounts made available 

7 under section 202(a)(15), the Secretary of the Treasury 

8 shall make a annual grant to each State (hereafter in this 

9 section referred to as ‘‘State grant’’) to distribute to eligi10 ble low-income households in accordance with this section. 

11 (b) ELIGIBLE LOW-INCOME HOUSEHOLD.—A house12 hold shall be considered to be an eligible low-income house13 hold for purposes of this section if— 

14 (1) except as provided in subsection (d)(4), the 

15 gross income of the household does not exceed 150 

16 percent of the poverty line; 

17 (2) the appropriate State agency for the State 

18 in which the household is located determines that 

19 the household is participating in— 

20 (A) the Supplemental Nutrition Assistance 

21 Program authorized by the Food and Nutrition 

22 Act of 2008 (7 U.S.C. 2011 et seq.); 

23 (B) the Food Distribution Program on In24 dian Reservations authorized by section 4(b) of 

25 such Act (7 U.S.C. 2013(b)); or 


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1 (C) the program for nutrition assistance in 

2 Puerto Rico or American Samoa under section 

3 19 of such Act (7 U.S.C. 2028); 

4 (3) the household consists of a single individual 

5 or a married couple, and— 

6 (A) receives the subsidy described in sec7 tion 1860D–14 of the Social Security Act (42 

8 U.S.C. 1395w–114); or 

9 (B)(i) participates in the program under 

10 title XVIII of the Social Security Act; and 

11 (ii) meets the income requirements de12 scribed in section 1860D–14(a)(1) or (a)(2) of 

13 the Social Security Act (42 U.S.C. 1395w– 

14 114(a)(1) or (a)(2)); or 

15 (4) the household consists of a single individual 

16 or a married couple, and receives benefits under the 

17 supplemental security income program under title 

18 XVI of the Social Security Act (42 U.S.C. 1381– 

19 1383f). 

20 (c) AMOUNT.—The Secretary of the Treasury, in con21 sultation with the Secretary of Energy and the Adminis22 trator of the Environmental Protection Agency, shall de23 termine the amount of each State grant in proportion to 

24 the percentage of total United States greenhouse gas emis25 sions attributable to electricity, natural gas, gasoline, dieVerDate Sep 11 2014 00:38 Dec 28, 2023 Jkt 049200 PO 00000 Frm 00053 Fmt 6652 Sfmt 6201 E:\BILLS\H6665.IH H6665

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1 sel, and fuel ethanol sold in such State during the pre2 ceding calendar year. 

3 (d) RULE RELATING TO PROCESS.—Not later than 

4 1 year after the enactment of this Act, the Secretary of 

5 the Treasury shall establish by rule a date in each year 

6 by which each State shall notify the Secretary how the 

7 State intends to distribute the State Grant. The Secretary 

8 shall transfer the State Grant to each State only upon 

9 the State demonstrating to the Secretary’s satisfaction 

10 that the State intends to distribute the State Grant in ac11 cordance with this section. 

12 (e) STATE.—For the purposes of this section, the 

13 term ‘‘State’’ includes the District of Columbia and any 

14 territory of possession of the United States. 

15 Subtitle B—Certain Manufacturers 

16 Excise Taxes 

17 SEC. 211. REPEAL OF FEDERAL MOTOR VEHICLE AND AVIA18 TION FUEL TAXES. 

19 (a) IN GENERAL.—Subpart A of part III of sub20 chapter A of chapter 32 of the Internal Revenue Code of 

21 1986 is hereby repealed. 

22 (b) EFFECTIVE DATE.—The repeal made by sub23 section (a) shall apply to transactions after December 31, 

24 2023. 


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1 SEC. 212. MODIFICATIONS OF QUALIFYING ADVANCED 

2 COAL PROJECT CREDIT. 

3 (a) SEQUESTRATION REQUIREMENT FOR CERTAIN

4 EQUIPMENT.—Section 48A(e)(1)(G) of the Internal Rev5 enue Code of 1986 is amended by inserting ‘‘and 60 per6 cent in the case of an application for a reallocation of cred7 its under subsection (d)(4) with respect to an electrical 

8 generating unit in existence on October 3, 2008’’ after 

9 ‘‘under subsection (d)(4)’’. 

10 (b) NAMEPLATE GENERATING CAPACITY REQUIRE11 MENT.—Section 48A(e)(1)(C) of such Code is amended by 

12 striking ‘‘400 megawatts’’ and inserting ‘‘200 

13 megawatts’’. 

14 (c) ADVANCED COAL-BASED GENERATION TECH15 NOLOGY REQUIREMENTS.— 

16 (1) IN GENERAL.—Section 48A(f)(1) of such 

17 Code is amended by striking ‘‘generation technology 

18 if—’’ and all that follows through ‘‘the unit is de19 signed’’ and inserting ‘‘generation technology if the 

20 unit is designed’’. 

21 (2) CONFORMING AMENDMENTS.—Section 

22 48A(f) is amended— 

23 (A) by striking all that precedes ‘‘the pur24 pose of this section’’ and inserting the fol25 lowing: 


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1 ‘‘(f) ADVANCED COAL-BASED GENERATION TECH2 NOLOGY.—For’’; 

3 (B) by striking ‘‘in subparagraph (B)’’ in 

4 the second sentence and inserting ‘‘in this sub5 section’’; and 

6 (C) by striking paragraphs (2) and (3). 

7 (d) PERFORMANCE REQUIREMENTS IN CASE OF

8 BEST AVAILABLE CONTROL TECHNOLOGY.—Section 

9 48A(f) of such Code, as amended by this Act, is amended 

10 by adding at the end the following: ‘‘In the case of a ret11 rofit of a unit which has undergone a best available control 

12 technology analysis after August 8, 2005, with respect to 

13 the removal or emissions of any pollutant which is SO2 

14 or NOx, the removal or emissions design level with respect 

15 to such pollutant shall be the level determined in such 

16 analysis.’’. 

17 (e) CLARIFICATION OF REALLOCATION AUTHOR18 ITY.—Section 48A(d)(4) of the Internal Revenue Code of 

19 1986 is amended— 

20 (1) in subparagraph (A)— 

21 (A) by striking ‘‘Not later than 6 years 

22 after the date of enactment of this section, the’’ 

23 and inserting ‘‘The’’; and 

24 (B) by inserting ‘‘and every 6 months 

25 thereafter until all credits available under this 


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1 section have been allowed’’ after ‘‘the date 

2 which is 6 years after the date of enactment of 

3 this section’’; 

4 (2) in subparagraph (B)— 

5 (A) by striking ‘‘may reallocate credits 

6 available under clauses (i) and (ii) of paragraph 

7 (3)(B)’’ and inserting ‘‘shall reallocate credits 

8 remaining available under paragraph (3)’’; 

9 (B) by striking ‘‘or’’ at the end of clause 

10 (i); and 

11 (C) by striking clause (ii) and inserting the 

12 following: 

13 ‘‘(ii) any applicant for certification 

14 which submitted an accepted application 

15 has subsequently failed to satisfy the re16 quirements under paragraph (2)(D), or 

17 ‘‘(iii) any certification made pursuant 

18 to paragraph (2) has been revoked pursu19 ant to paragraph (2)(E).’’; and 

20 (3) in subparagraph (C)— 

21 (A) by striking ‘‘clause (i) or (ii) of para22 graph (3)(B)’’ and inserting ‘‘paragraph (3)’’; 

23 (B) by striking ‘‘is authorized to’’ and in24 serting ‘‘shall’’; and 


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1 (C) by striking ‘‘an additional program’’ 

2 and inserting ‘‘additional programs’’. 

3 (f) EFFECTIVE DATE.— 

4 (1) IN GENERAL.—Except as provided in para5 graph (2), the amendments made by this section 

6 shall apply to allocations and reallocations after the 

7 date of the enactment of this Act. 

8 (2) REALLOCATION.—The amendments made 

9 by subsection (e) shall apply to credits remaining 

10 available under section 48A(d)(3) of the Internal 

11 Revenue Code of 1986 on the date of the enactment 

12 of this Act. 

13 TITLE III—AMENDMENTS TO 

14 OTHER LAWS 

15 Subtitle A—Amendments to 

16 Federal Environmental Statutes 

17 SEC. 301. AMENDMENTS TO THE CLEAN AIR ACT. 

18 (a) IN GENERAL.—Title III of the Clean Air Act (42 

19 U.S.C. 7601) is amended by adding at the end the fol20 lowing: 

21 ‘‘SEC. 330. MORATORIUM AGAINST CERTAIN REGULATIONS 

22 BASED ON GREENHOUSE GAS EFFECTS. 

23 ‘‘(a) FUELS.—Unless specifically authorized in sec24 tion 202, 211, 213, 231, or this section, after a fossil fuel 

25 has passed through a point of taxation as provided in secVerDate Sep 11 2014 00:38 Dec 28, 2023 Jkt 049200 PO 00000 Frm 00058 Fmt 6652 Sfmt 6201 E:\BILLS\H6665.IH H6665

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1 tion 9901(d) of the Internal Revenue Code of 1986, sub2 ject to subsection (g), the Administrator shall not issue 

3 or enforce any rule limiting the emission of greenhouse 

4 gases from the combustion of that fuel under this Act (or 

5 impose any requirement on any State to limit such emis6 sion) on the basis of the emission’s greenhouse gas effects. 

7 ‘‘(b) EMISSIONS.—Unless specifically authorized in 

8 section 202, 211, 213, 231, or this section, if emission 

9 of any greenhouse gas is subject to taxation pursuant to 

10 section 9902 or 9903 of the Internal Revenue Code of 

11 1986, the Administrator shall not issue or enforce any rule 

12 limiting such emission under this Act (or impose any re13 quirement on any State to limit such emission) on the 

14 basis of the emission’s greenhouse gas effects. 

15 ‘‘(c) AUTHORIZED REGULATION.—Notwithstanding 

16 subsections (a) and (b), nothing in this section limits the 

17 Administrator’s authority pursuant to any other provision 

18 of this Act— 

19 ‘‘(1) to limit the emission of any greenhouse 

20 gas because of any adverse impact on health or wel21 fare other than its greenhouse gas effects; 

22 ‘‘(2) in limiting emissions as described in para23 graph (1), to consider the collateral benefits of lim24 iting the emissions because of greenhouse gas ef25 fects; 


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1 ‘‘(3) to limit the emission of any other pollutant 

2 that is not a greenhouse gas that the Administrator 

3 determines by rule has heat-trapping properties; or 

4 ‘‘(4) to take any action with respect to any 

5 greenhouse gas other than limiting its emission, in6 cluding— 

7 ‘‘(A) monitoring, reporting, and record8 keeping requirements; 

9 ‘‘(B) conducting or supporting investiga10 tions; and 

11 ‘‘(C) information collection. 

12 ‘‘(d) EXCEPTION FOR CERTAIN GREENHOUSE GAS

13 EMISSIONS.—Notwithstanding subsections (a) and (b), 

14 nothing in this section limits the Administrator’s authority 

15 to regulate greenhouse gas emissions from— 

16 ‘‘(1) facilities that— 

17 ‘‘(A) are subject to subpart OOOO or 

18 OOOOa of part 60 of title 40, Code of Federal 

19 Regulations, as in effect on January 1, 2018, or 

20 ‘‘(B) would be subject to either subpart 

21 OOOO or OOOOa if those subparts applied to 

22 facilities without regard to the date on which 

23 construction, modification, or reconstruction 

24 commenced, and 


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1 ‘‘(2) POTW Treatment Plants (as defined in 

2 section 403.3(r) of title 40, Code of Federal Regula3 tions (as in effect on the date of enactment of this 

4 section)). 

5 ‘‘(e) DEFINITIONS.—In this section, the terms 

6 ‘greenhouse gas’ and ‘greenhouse gas effects’ have the 

7 meanings given to those terms in section 9907 of the In8 ternal Revenue Code of 1986. 

9 ‘‘(f) MORATORIUM EXPIRATION.—Subsections (a) 

10 and (b) shall cease to apply beginning on January 1, 2037. 

11 ‘‘(g) EXCEPTIONS.— 

12 ‘‘(1) 2028.—Notwithstanding subsections (a) 

13 and (b) of this section and section 211(c)(5) of this 

14 Act, if the Administrator determines by March 30, 

15 2029, pursuant to the report required by section 

16 9901(b)(3)(A) of the Internal Revenue Code of 

17 1986, that total greenhouse gas emissions from 

18 sources subject to taxation under sections 9901 

19 through 9903 of such Code during the period of cal20 endar years 2025 through 2028 exceed the emission 

21 level specified in section 9901(b)(3)(A) of such Code 

22 for calendar year 2028, then beginning on October 

23 1, 2029, subsections (a) and (b) shall cease to apply. 

24 ‘‘(2) 2032.—Notwithstanding subsections (a) 

25 and (b) of this section and section 211(c)(5) of this 


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1 Act, if the Administrator determines by March 30, 

2 2033, pursuant to the report required by section 

3 9901(b)(3)(A) of the Internal Revenue Code of 

4 1986, that total greenhouse gas emissions from 

5 sources subject to taxation under sections 9901 

6 through 9903 of such Code during the period of cal7 endar years 2025 through 2032 exceed the emission 

8 level specified in section 9901(b)(3)(A) of such Code 

9 for calendar year 2032, then beginning on October 

10 1, 2033, subsections (a) and (b) shall cease to 

11 apply.’’. 

12 (b) NEW MOTOR VEHICLES AND NEW MOTOR VEHI13 CLE ENGINES.—Section 202(b) of the Clean Air Act (42 

14 U.S.C. 7521(b)) is amended— 

15 (1) by redesignating the second paragraph (3) 

16 (as redesignated by section 230(4)(C) of Public Law 

17 101–549 (104 Stat. 2529)) as paragraph (4); and 

18 (2) by adding at the end the following: 

19 ‘‘(5) Notwithstanding section 330(a), the Ad20 ministrator may— 

21 ‘‘(A) limit the emission of any greenhouse 

22 gas (as defined in section 9907 of the Internal 

23 Revenue Code of 1986) on the basis of the 

24 emission’s greenhouse gas effects (as defined in 

25 section 9907 of the Internal Revenue Code of 


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1 1986) from any class or classes of new motor 

2 vehicles or new motor vehicle engines subject to 

3 regulation under subsection (a)(1); and 

4 ‘‘(B) grant a waiver under section 

5 209(b)(1) for standards for the control of 

6 greenhouse gas emissions.’’. 

7 (c) FUELS.—Section 211(c) of the Clean Air Act (42 

8 U.S.C. 7545(c)) is amended by adding at the end the fol9 lowing new paragraph: 

10 ‘‘(5) Except as required in subsection (o), the 

11 Administrator shall not, pursuant to this subsection, 

12 impose on any manufacturer, processor, or dis13 tributor of fuel any requirement for the purpose of 

14 reducing the emission of any greenhouse gas (as de15 fined in section 9907 of the Internal Revenue Code 

16 of 1986) produced by combustion of the fuel on the 

17 basis of the emission’s greenhouse gas effects (as de18 fined in section 9907 of the Internal Revenue Code 

19 of 1986).’’. 

20 (d) NONROAD ENGINES AND VEHICLES EMISSIONS

21 STANDARDS.—Section 213 of the Clean Air Act (42 

22 U.S.C. 7547) is amended by adding at the end the fol23 lowing: 

24 ‘‘(e) GREENHOUSE GAS EMISSIONS.—Notwith25 standing subsections (a) and (b) of section 330, the AdVerDate Sep 11 2014 00:38 Dec 28, 2023 Jkt 049200 PO 00000 Frm 00063 Fmt 6652 Sfmt 6201 E:\BILLS\H6665.IH H6665

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1 ministrator may limit the emission of any greenhouse gas 

2 (as defined in section 9907 of the Internal Revenue Code 

3 of 1986) on the basis of the emission’s greenhouse gas 

4 effects (as defined in section 9907 of the Internal Revenue 

5 Code of 1986) from any nonroad engines and nonroad ve6 hicles subject to regulation under this section.’’. 

7 (e) AIRCRAFT EMISSION STANDARDS.—Section 231 

8 of the Clean Air Act (42 U.S.C. 757) is amended by add9 ing at the end the following new subsection: 

10 ‘‘(d) Notwithstanding subsections (a) and (b) of sec11 tion 330, the Administrator may limit the emission of any 

12 greenhouse gas (as defined in section 9907 of the Internal 

13 Revenue Code of 1986) on the basis of the emission’s 

14 greenhouse gas effects (as defined in section 9907 of the 

15 Internal Revenue Code of 1986) from any class or classes 

16 of aircraft engines, so long as any such limitation is not 

17 more stringent than the standards adopted by the Inter18 national Civil Aviation Organization.’’. 

19 SEC. 302. FREQUENT AND CHRONIC FLOODING MITIGATION 

20 AND ADAPTATION INFRASTRUCTURE 

21 PROJECTS. 

22 (a) IN GENERAL.—The Secretary of Commerce and 

23 the Secretary of the Army (hereinafter referred to as ‘‘the 

24 Secretaries’’), in consultation with the Secretary of Home25 land Security, may make grants to State and local governVerDate Sep 11 2014 00:38 Dec 28, 2023 Jkt 049200 PO 00000 Frm 00064 Fmt 6652 Sfmt 6201 E:\BILLS\H6665.IH H6665

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1 ments and federally recognized Indian Tribes for frequent 

2 and chronic flooding mitigation and adaptation infrastruc3 ture projects. 

4 (b) AUTHORIZED USES.—Amounts provided as a 

5 grant under this section may be used for any of the fol6 lowing: 

7 (1) Adaptation of existing infrastructure to 

8 mitigate impacts of climate change, including en9 hancements to both built and natural environments. 

10 (2) Maintenance and updating of existing flood 

11 risk reduction infrastructure, such as gravity drain12 age structures, road elevation, bulkheads, gates, and 

13 floodwalls. 

14 (3) Increasing resilience to frequent and chronic 

15 flooding, including (as combined or separate 

16 projects)— 

17 (A) the creation of bulkheads, levees, and 

18 other hard infrastructure alone or in combina19 tion with natural infrastructure described in 

20 subparagraph (B); and 

21 (B) habitat restoration work, including 

22 dune enhancement, vegetative restoration, 

23 beach renourishment, coral and oyster reef res24 toration, floodplain restoration, and other ac25 tions to restore the function of the natural ecoVerDate Sep 11 2014 00:38 Dec 28, 2023 Jkt 049200 PO 00000 Frm 00065 Fmt 6652 Sfmt 6201 E:\BILLS\H6665.IH H6665

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1 logical function and processes to provide flood 

2 risk reduction benefits. 

3 (4) Improvements to conveyance, diversion, re4 moval, and storage infrastructure to reduce risks 

5 caused by frequent and chronic flooding. 

6 (5) Innovative methods to reduce risks caused 

7 by chronic flooding along street infrastructure sys8 tems, including canal streets, absorbent streets, 

9 floodable parks, bioswales, rain gardens, permeable 

10 pavement, and underground cisterns. 

11 (6) Deployment of technologies designed to 

12 mitigate power outages, continue delivery of vital 

13 electricity services, and maintain the flow of power 

14 to facilities critical to public health, safety and wel15 fare, including distributed generation, energy stor16 age, and microgrids. 

17 (c) LIMITATION ON PROJECT ELIGIBILITY.—A 

18 project shall not be eligible for funding under this section 

19 if it will have any long-term negative impact on important 

20 ecological functions and habitat or existing natural protec21 tion features and functions. 

22 (d) PRIORITY.—In making grants under this section 

23 the Secretaries shall give priority to the following: 

24 (1) Protecting areas designated as special flood 

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1 surance program under the National Flood Insur2 ance Act of 1968 (42 U.S.C. 4001 et seq.) and the 

3 Flood Disaster Protection Act of 1973 (42 U.S.C. 

4 4001 et seq.), hazard areas that incorporate at least 

5 2 feet of additional freeboard, or 3 feet in the case 

6 of critical infrastructure, above base flood elevation. 

7 (2) Protecting critical infrastructure, as that 

8 term is defined in section 1016(e) of the USA PA9 TRIOT Act of 2001 (42 U.S.C. 5195c(e)). 

10 (3) Projects that yield flood risk reduction ben11 efits and additional environmental, social, and eco12 nomic benefits. 

13 (e) JOINT APPLICATION.—Two or more contiguous 

14 local governments or Tribes may jointly apply for, and re15 ceive, a grant under this section. 

16 (f) COST SHARING.— 

17 (1) LIMITATION ON FEDERAL SHARE.—The 

18 Federal share of the cost of any activity carried out 

19 with a grant under this section shall not exceed 90 

20 percent of the cost of such activity. 

21 (2) NON-FEDERAL SHARE.—The Secretary 

22 shall apply to the non-Federal share of an activity 

23 carried out with a grant under this section the 

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1 erty and services, provided by non-Federal sources 

2 and used for the activity. 

3 (g) REPORTS.—Each recipient of a grant under this 

4 section shall report annually to the Secretaries on the 

5 progress made on the project carried out with the grant. 

6 SEC. 303. NO PREEMPTION OF STATE LAW. 

7 Nothing in this act shall preempt or supersede, or 

8 be interpreted to preempt or supersede, any State law or 

9 regulation. 

10 Subtitle B—Assistance to Displaced 

11 Workers in the Energy Sector 

12 SEC. 321. ASSISTANCE TO DISPLACED WORKERS IN THE EN13 ERGY SECTOR. 

14 (a) IN GENERAL.—For a period of 10 years after the 

15 enactment of the Modernizing America with Rebuilding to 

16 Kickstart the Economy of the Twenty-first Century with 

17 a Historic Infrastructure-Centered Expansion Act, from 

18 amounts made available under section 202 of this Act, the 

19 Secretary of Labor shall carry out a program to assist 

20 workers in the energy sector. 

21 (b) WORKERS IN THE ENERGY SECTOR.—For pur22 poses of this section, the term ‘‘workers in the energy sec23 tor’’ means— 


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1 (1) workers in fossil energy sectors that may be 

2 displaced as a result of the enactment of this Act; 

3 and 

4 (2) workers in the nuclear power sector that 

5 work at a nuclear power plant— 

6 (A) that ceased operation in the two years 

7 preceding the date of enactment of this Act; or 

8 (B) the owner of which announced prior to 

9 the date of enactment of this Act its intent to 

10 cease the operation of the plant at a future 

11 date. 

12 (c) ELIGIBLE ACTIVITIES.—Such assistance may 

13 take the form of the following: 

14 (1) Worker retraining. 

15 (2) Relocation expenses for those who move to 

16 find new employment. 

17 (3) Early retirement. 

18 (4) Health benefits. 

19 (5) Block grants to affected communities for 

20 economic redevelopment and infrastructure invest21 ments. 

22 (6) Transfers to the trustees of the 1974 

23 United Mine Workers of America Pension Plan to 

24 pay benefits required under that plan. No such 

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1 ning after a plan year for which the funded percent2 age (as defined in section 432(j)(2) of the Internal 

3 Revenue Code of 1986) of the 1974 United Mine 

4 Workers of America Pension Plan is at least 100 

5 percent. 

6 TITLE IV—NATIONAL CLIMATE 

7 COMMISSION 

8 SEC. 401. ESTABLISHMENT OF COMMISSION. 

9 (a) ESTABLISHMENT.—There is established a bipar10 tisan commission to be known as the ‘‘National Climate 

11 Commission’’ (in this title referred to as the ‘‘Commis12 sion’’). 

13 (b) MEMBERSHIP.— 

14 (1) COMPOSITION.—The Commission shall be 

15 composed of 10 members, appointed as follows: 

16 (A) One cochair appointed by the Presi17 dent. 

18 (B) One cochair appointed by the majority 

19 or minority leader of the Senate, whoever is of 

20 the opposite party as the President, in consulta21 tion with the Speaker or minority leader of the 

22 House of Representatives, whoever is of the op23 posite party as the President. 

24 (C) Two members appointed by the major25 ity leader of the Senate. 


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1 (D) Two members appointed by the minor2 ity leader of the Senate. 

3 (E) Two members appointed by the Speak4 er of the House of Representatives. 

5 (F) Two members appointed by the minor6 ity leader of the House of Representatives. 

7 (2) QUALIFICATIONS.— 

8 (A) IN GENERAL.—To be considered for 

9 membership on the Commission, an individual 

10 shall demonstrate expertise in the economy, en11 ergy, climate, or public health, and be a rep12 resentative from— 

13 (i) an academic, scientific, or other 

14 non-governmental organization; or 

15 (ii) an industry organization or small 

16 business in a relevant sector such as— 

17 (I) energy supply and trans18 mission, including fossil fuels and re19 newable energy; 

20 (II) energy exploration and pro21 duction, including fossil fuels and re22 newable energy; 

23 (III) solid waste and wastewater; 

24 (IV) transportation; 

25 (V) chemical manufacturing; 


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1 (VI) agriculture; 

2 (VII) construction; and 

3 (VIII) forestry. 

4 (B) CERTAIN PERSONS INELIGIBLE.—No 

5 employee, owner, director, or other person affili6 ated with an entity that has donated funding 

7 for the activities of the Commission pursuant to 

8 section 404(a) may be appointed to the Com9 mission. 

10 (C) APPOINTMENT DEADLINE.—Members 

11 of the Commission shall be appointed not later 

12 than 180 days after the date of the enactment 

13 of this Act. 

14 (D) PERIOD OF APPOINTMENT.—Members 

15 of the Commission shall be appointed for a 

16 term of 6 years, which may be renewed. 

17 (E) VACANCY.—A vacancy in the Commis18 sion shall not affect the powers of the Commis19 sion and shall be filled in the same manner in 

20 which the original appointment was made. 

21 (3) COMPENSATION OF EMPLOYEES.—Each 

22 member of the Commission may be compensated at 

23 a rate not to exceed the daily equivalent of the an24 nual rate of basic pay in effect for a position at level 

25 IV of the Executive Schedule under section 5315 of 


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1 title 5, United States Code, for each day during 

2 which that member is engaged in the performance of 

3 the duties of the Commission. 

4 (4) TRAVEL EXPENSES.—Each member shall 

5 receive travel expenses to perform the duties of the 

6 Commission, including per diem in lieu of subsist7 ence, at rates authorized under subchapter I of 

8 chapter 57 of title 5, United States Code. 

9 (c) MEETINGS.— 

10 (1) INITIAL MEETING.—The Commission shall 

11 hold its first meeting not later than 2 years after the 

12 date of enactment of this Act. 

13 (2) MEETING.—The Commission shall meet not 

14 less than once every 3 years. 

15 (3) QUORUM.—Six members of the Commission 

16 shall constitute a quorum. 

17 SEC. 402. DUTIES OF COMMISSION. 

18 (a) GOALS.—The Commission shall set goals for 

19 emissions reduction to be achieved by 2029 and every five 

20 years thereafter through 2054, using such estimated rates 

21 of reduction as the Commission determines reflect the lat22 est scientific findings of what is necessary to avoid the 

23 serious human health and environmental consequences of 

24 climate change. 


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1 (b) REVIEW.—The Commission shall assess the effect 

2 of existing policies and programs of the Federal govern3 ment with the aim of achieving the emissions reduction 

4 goals in subsection (a). 

5 (c) REPORT.—Beginning in 2030, and every 5 years 

6 thereafter, the Commission shall issue a report to the 

7 President, Congress, and the States, which shall include— 

8 (1) an analysis of whether the policies and pro9 grams assessed under subsection (b) are on pace to 

10 achieving the emissions reduction goals set under 

11 subsection (a); 

12 (2) recommendations, if any, for reducing 

13 greenhouse gas emissions; and 

14 (3) a minority report with dissenting views, if 

15 applicable. 

16 SEC. 403. POWERS OF COMMISSION. 

17 (a) OBTAINING OFFICIAL DATA.— 

18 (1) IN GENERAL.—The Commission may secure 

19 directly from any executive department, bureau, 

20 agency, board, commission, office, independent es21 tablishment, or instrumentality of the Government, 

22 unrestricted information, suggestions, estimates, and 

23 statistics for the purpose of carrying out this title. 

24 Each department, bureau, agency, board, commis25 sion, office, independent establishment, or instruVerDate Sep 11 2014 00:38 Dec 28, 2023 Jkt 049200 PO 00000 Frm 00074 Fmt 6652 Sfmt 6201 E:\BILLS\H6665.IH H6665

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1 mentality shall, to the extent authorized by provi2 sions of law other than this section, furnish such un3 restricted information, suggestions, estimates, and 

4 statistics directly to the Commission, upon request 

5 made by a cochair or any member designated by a 

6 majority of the Commission. 

7 (2) RECEIPT, HANDLING, STORAGE, AND DIS8 SEMINATION.—Unrestricted information provided to 

9 the Commission under paragraph (1) shall be re10 ceived, handled, stored, and disseminated only by 

11 members and staff of the Commission, consistent 

12 with any applicable statutes, regulations, or Execu13 tive orders. 

14 (b) ASSISTANCE FROM FEDERAL AGENCIES.— 

15 (1) GENERAL SERVICES ADMINISTRATION.— 

16 The Administrator of General Services shall provide 

17 to the Commission, on a reimbursable basis, admin18 istrative support and other services for the perform19 ance of the functions of the Commission. 

20 (2) OTHER DEPARTMENTS AND AGENCIES.—In 

21 addition to the assistance prescribed in paragraph 

22 (1), departments and agencies of the United States 

23 may provide to the Commission such services, funds, 

24 facilities, staff, and other support services as they 


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1 may determine advisable and as may be authorized 

2 by law. 

3 (c) POSTAL SERVICES.—The Commission may use 

4 the United States mail in the same manner and under the 

5 same conditions as other departments and agencies of the 

6 United States. 

7 SEC. 404. FUNDING FOR THE ACTIVITIES OF THE COMMIS8 SION. 

9 (a) PRIVATE SECTOR DONATIONS.—The Secretary of 

10 Commerce may collect private sector donations for the 

11 purpose of carrying out this title, to be deposited in the 

12 Treasury and made available consistent with the author13 ization of appropriations in subsection (c). 

14 (b) TRANSPARENCY.—The amounts and sources of 

15 all funds donated under subsection (a) and all spending 

16 by the Commission shall be made publicly available on the 

17 website of the Commission. 

18 (c) AUTHORIZATION OF APPROPRIATIONS.—There is 

19 authorized to be appropriated to the Commission, for the 

20 purpose of carrying out the activities of this title, 

21 $5,000,000 for each of fiscal years 2025 through 2034. 

22 SEC. 405. STAFF OF THE COMMISSION. 

23 (a) DETAIL OF GOVERNMENT EMPLOYEES.—Any 

24 Federal Government employee may be detailed to the 

25 Commission without reimbursement from the Commission, 


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1 and such detail shall be without interruption or loss of 

2 civil service status or privilege. 

3 (b) EXPERT AND CONSULTANT SERVICES.—The 

4 Commission may procure the services of experts and con5 sultants in accordance with section 3109 of title 5, United 

6 States Code, at rates not to exceed the daily equivalent 

7 of the annual rate of basic pay in effect for a position 

8 at level IV of the Executive Schedule under section 5315 

9 of title 5, United States Code. 

Æ 


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