II 

116TH CONGRESS 

1ST SESSION S. 2284 

To create a Climate Action Rebate Fund in order to efficiently reduce greenhouse gas emissions, provide a monthly rebate to the American people, 

encourage innovation of clean energy technologies and create new economic opportunities, ensure the resiliency of our infrastructure, assist 

with the transition to a clean energy economy, and leave a healthier, 

more stable, and more prosperous nation for future generations. 

IN THE SENATE OF THE UNITED STATES 

JULY 25, 2019 

Mr. COONS (for himself and Mrs. FEINSTEIN) introduced the following bill; 

which was read twice and referred to the Committee on Finance 

A BILL 

To create a Climate Action Rebate Fund in order to efficiently reduce greenhouse gas emissions, provide a 

monthly rebate to the American people, encourage innovation of clean energy technologies and create new economic opportunities, ensure the resiliency of our infrastructure, assist with the transition to a clean energy 

economy, and leave a healthier, more stable, and more 

prosperous nation for future generations. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Climate Action Rebate 

3 Act of 2019’’. 

4 SEC. 2. FINDINGS. 

5 The Congress finds that— 

6 (1) climate change is costing the United States 

7 billions of dollars of economic losses and poses an 

8 existential threat to our safety and security; 

9 (2) markets should reflect all costs of goods, in10 cluding external factors such as pollution; and 

11 (3) creation of a Climate Action Rebate Fund 

12 can make markets more efficient, create jobs, stimu13 late innovation, invest in infrastructure, put money 

14 back in the pockets of Americans, and provide for 

15 the transition to a cleaner energy future. 

16 SEC. 3. CARBON FEE. 

17 (a) IN GENERAL.—Chapter 38 of subtitle D of the 

18 Internal Revenue Code of 1986 is amended by adding at 

19 the end the following new subchapter: 

20 ‘‘Subchapter E—Carbon Fee 

‘‘Sec. 4691. Definitions. 

‘‘Sec. 4692. Carbon fee. 

‘‘Sec. 4693. Emissions reduction schedule. 

‘‘Sec. 4694. Fee on fluorinated greenhouse gases. 

‘‘Sec. 4695. Carbon capture refunds. 

‘‘Sec. 4696. Carbon border fee adjustment. 

‘‘Sec. 4697. Administration of the carbon border fee adjustment. 

‘‘Sec. 4698. Allocation of carbon border fee adjustment revenues. 


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1 ‘‘SEC. 4691. DEFINITIONS. 

2 ‘‘For purposes of this subchapter— 

3 ‘‘(a) ADMINISTRATOR.—The term ‘Administrator’ 

4 means the Administrator of the Environmental Protection 

5 Agency. 

6 ‘‘(b) CARBON DIOXIDE EQUIVALENT OR CO2-E.— 

7 The term ‘carbon dioxide equivalent’ or ‘CO2-e’ means the 

8 number of metric tons of carbon dioxide emissions with 

9 the same global warming potential as one metric ton of 

10 another greenhouse gas. 

11 ‘‘(c) CARBON-INTENSIVE PRODUCT.—The term ‘car12 bon-intensive product’ means— 

13 ‘‘(1) iron, steel, steel mill products (including 

14 pipe and tube), aluminum, cement, glass (including 

15 flat, container, and specialty glass and fiberglass), 

16 pulp, paper, chemicals, or industrial ceramics, and 

17 ‘‘(2) any manufactured product which the Sec18 retary, in consultation with the Administrator, deter19 mines is energy-intensive and trade-exposed (with 

20 the exception of any covered fuel). 

21 ‘‘(d) COVERED ENTITY.—The term ‘covered entity’ 

22 means— 

23 ‘‘(1) in the case of crude oil— 

24 ‘‘(A) any operator of a United States refin25 ery (as described in subsection (d)(1) of section 

26 4611), and 


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1 ‘‘(B) any person entering such product 

2 into the United States for consumption, use, or 

3 warehousing (as described in subsection (d)(2) 

4 of such section), 

5 ‘‘(2) in the case of coal— 

6 ‘‘(A) any producer subject to the tax under 

7 section 4121, and 

8 ‘‘(B) any importer of coal into the United 

9 States, 

10 ‘‘(3) in the case of natural gas— 

11 ‘‘(A) any entity which produces natural 

12 gas (as defined in section 613A(e)(2)) from a 

13 well located in the United States, and 

14 ‘‘(B) any importer of natural gas into the 

15 United States, 

16 ‘‘(4) in the case of fluorinated gases, any entity 

17 required to report the emission of a fluorinated gas 

18 under part 98 of title 40, Code of Federal Regula19 tions, 

20 ‘‘(5) in the case of solid biomass, any entity 

21 which operates a facility that combusts such solid 

22 biomass in a manner which emits a greenhouse gas 

23 into the atmosphere, and 

24 ‘‘(6) any entity or class of entities which, as de25 termined by the Secretary, is transporting, selling, 


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1 or otherwise using a covered fuel in a manner which 

2 emits a greenhouse gas into the atmosphere and 

3 which has not been covered by the carbon fee, the 

4 fluorinated greenhouse gas fee, or the carbon border 

5 fee adjustment. 

6 ‘‘(e) COVERED FUEL.—The term ‘covered fuel’ 

7 means crude oil, natural gas, coal, solid biomass, or any 

8 other product derived from crude oil, natural gas, or coal 

9 which shall be used so as to emit greenhouse gases to the 

10 atmosphere. 

11 ‘‘(f) FULL FUEL CYCLE GREENHOUSE GAS EMIS12 SIONS.—The term ‘full fuel cycle greenhouse gas emis13 sions’ means the greenhouse gas content of a covered fuel 

14 (excluding solid biomass) plus that covered fuel’s up15 stream greenhouse gas emissions. 

16 ‘‘(g) GREENHOUSE GAS.—The term ‘greenhouse gas’ 

17 has the same meaning given such term under paragraph 

18 (3) of section 901 of the Energy Independence and Secu19 rity Act of 2007 (42 U.S.C. 17321), and shall include any 

20 other gases as identified by rule of the Administrator. 

21 ‘‘(h) GREENHOUSE GAS CONTENT.—The term 

22 ‘greenhouse gas content’ means the amount of greenhouse 

23 gases, expressed in metric tons of CO2-e, which would be 

24 emitted to the atmosphere by the use of a covered fuel. 


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1 ‘‘(i) SOLID BIOMASS.—The term ‘solid biomass’ 

2 means nonfossilized and biodegradable organic material 

3 originating from plants, animals or microorganisms, in4 cluding products, byproducts, residues and waste from ag5 riculture, forestry and related industries as well as the 

6 nonfossilized and biodegradable organic fractions of indus7 trial and municipal wastes, but does not include gases and 

8 liquids recovered from the decomposition of nonfossilized 

9 and biodegradable organic material. 

10 ‘‘(j) UNITED STATES.—The term ‘United States’ 

11 shall be treated as including each possession of the United 

12 States (including the Commonwealth of Puerto Rico and 

13 the Commonwealth of the Northern Mariana Islands). 

14 ‘‘SEC. 4692. CARBON FEE. 

15 ‘‘(a) CARBON FEE.—There is hereby imposed a car16 bon fee on any covered entity’s use, sale, or transfer of 

17 any covered fuel. 

18 ‘‘(b) AMOUNT OF THE CARBON FEE.—The carbon 

19 fee imposed by this section is an amount equal to— 

20 ‘‘(1) the greenhouse gas content of the covered 

21 fuel, multiplied by 

22 ‘‘(2) the carbon fee rate. 

23 ‘‘(c) CARBON FEE RATE.—For purposes of this sec24 tion— 


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1 ‘‘(1) IN GENERAL.—The carbon fee rate, with 

2 respect to any use, sale, or transfer during a cal3 endar year, shall be— 

4 ‘‘(A) in the case of calendar year 2020, 

5 $15, and 

6 ‘‘(B) except as provided in paragraph (2), 

7 in the case of any calendar year thereafter, the 

8 carbon fee rate in effect under this subsection 

9 for the preceding calendar year, plus $15. 

10 ‘‘(2) EXCEPTIONS.— 

11 ‘‘(A) INCREASED CARBON FEE RATE

12 AFTER MISSED ANNUAL EMISSIONS REDUCTION

13 TARGET.—In the case of any year immediately 

14 following a year for which the Secretary deter15 mines under 4693(b) that the emissions of 

16 greenhouse gases from covered fuels exceeded 

17 the emissions reduction target for the previous 

18 year, paragraph (1)(B) shall be applied by sub19 stituting ‘$30’ for ‘$15’. 

20 ‘‘(B) CESSATION OF CARBON FEE RATE IN21 CREASE AFTER CERTAIN EMISSION REDUCTIONS

22 ACHIEVED.—In the case of any year imme23 diately following a year for which the Secretary 

24 determines under 4693(b) that emissions of 

25 greenhouse gases from covered fuels are not 


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1 more than 10 percent of the greenhouse gas 

2 emissions from covered fuels during the year 

3 2017, paragraph (1)(B) shall be applied by sub4 stituting ‘$0’ for ‘$15’. 

5 ‘‘(d) SOLID BIOMASS.—For purposes of subsection 

6 (b), in the case of a covered fuel which consists of solid 

7 biomass, the greenhouse gas content of such covered fuel 

8 shall be determined by the Administrator based on the 

9 lifecycle greenhouse gas emissions of such fuel, as defined 

10 in section 211(o)(1)(H) of the Clean Air Act (42 U.S.C. 

11 7545(o)(1)(H)). 

12 ‘‘(e) EXEMPTION AND REFUND.—The Secretary shall 

13 prescribe such rules as are necessary to ensure the carbon 

14 fee imposed by this section is not imposed with respect 

15 to any nonemitting use, or any sale or transfer for a non16 emitting use, including rules providing for the refund of 

17 any carbon fee paid under this section with respect to any 

18 such use, sale, or transfer. 

19 ‘‘(f) ADMINISTRATIVE AUTHORITY.—The Secretary, 

20 in consultation with the Administrator, shall prescribe 

21 such regulations, and other guidance, to assess and collect 

22 the carbon fee imposed by this section, including— 

23 ‘‘(1) requirements for the quarterly payment of 

24 such fees, and 


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1 ‘‘(2) rules to ensure that no covered fuel has 

2 the carbon fee or the carbon border fee adjustment 

3 imposed upon it more than once. 

4 ‘‘SEC. 4693. EMISSIONS REDUCTION SCHEDULE. 

5 ‘‘(a) IN GENERAL.—An emissions reduction schedule 

6 for greenhouse gas emissions from covered fuels is hereby 

7 established, as follows: 

8 ‘‘(1) REFERENCE YEAR.— 

9 ‘‘(A) IN GENERAL.—Subject to subpara10 graph (B), the greenhouse gas emissions from 

11 covered fuels during the year 2017 shall be the 

12 reference amount of emissions and shall be de13 termined from the ‘Inventory of U.S. Green14 house Gas Emissions and Sinks: 1990–2017’ 

15 published by the Environmental Protection 

16 Agency in April of 2019. 

17 ‘‘(B) UPDATES.—If the greenhouse gas 

18 emissions from covered fuels during the year 

19 2017 is revised by the Administrator in a sub20 sequent report, the amount of such emissions 

21 contained in such report shall apply for pur22 poses of this section. 

23 ‘‘(2) EMISSIONS REDUCTION TARGETS.— 

24 ‘‘(A) 2020 THROUGH 2030.—The emissions 

25 reduction target for each calendar year during 


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1 the period of calendar years 2020 through 2030 

2 shall be determined as follows: 

‘‘Year Emissions Reduction Target 

2017 Reference year 

2020 90 percent of 2017 emissions 

2021 81 percent of 2017 emissions 

2022 74 percent of 2017 emissions 

2023 68 percent of 2017 emissions 

2024 63 percent of 2017 emissions 

2025 59 percent of 2017 emissions 

2026 56 percent of 2017 emissions 

2027 52 percent of 2017 emissions 

2028 50 percent of 2017 emissions 

2029 47 percent of 2017 emissions 

2030 45 percent of 2017 emissions 

3 ‘‘(B) 2031 THROUGH 2050.—The emissions 

4 reduction target for each calendar year during 

5 the period of calendar years 2031 through 2050 

6 shall be equal to the emissions reduction target 

7 for the preceding year reduced by an amount 

8 equal to 2.25 percent of 2017 emissions. 

9 ‘‘(b) ADMINISTRATIVE DETERMINATION.—Not later 

10 than 90 days after the beginning of each calendar year 

11 beginning after the date of the enactment of this section, 

12 the Secretary, in consultation with the Administrator, 

13 shall determine whether emissions of greenhouse gases 


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1 from covered fuels exceeded the emissions reduction target 

2 for the preceding calendar year. The Secretary shall make 

3 such determination using the same greenhouse gas ac4 counting method as was used to determine the greenhouse 

5 gas emissions in the ‘Inventory of U.S. Greenhouse Gas 

6 Emissions and Sinks: 1990–2017’ published by the Envi7 ronmental Protection Agency in April of 2019. 

8 ‘‘SEC. 4694. FEE ON FLUORINATED GREENHOUSE GASES. 

9 ‘‘(a) FLUORINATED GAS FEE.—A fee is hereby im10 posed upon any fluorinated greenhouse gas which is re11 quired to be reported under part 98 of title 40, Code of 

12 Federal Regulations. 

13 ‘‘(b) AMOUNT.—The fee to be paid by the covered 

14 entity required to so report shall be an amount equal to— 

15 ‘‘(1) the total amount, in metric tons of CO2- 

16 e, of emitted fluorinated greenhouse gases (or, in the 

17 case of a supplier, emissions that would result deter18 mined under the rules of such part), multiplied by 

19 ‘‘(2) an amount equal to 20 percent of the car20 bon fee rate in effect under section 4692(c)(1) for 

21 the calendar year of such emission. 

22 ‘‘(c) ADMINISTRATIVE AUTHORITY.—The Secretary, 

23 in consultation with the Administrator, shall prescribe 

24 such regulations, and other guidance, to assess and collect 

25 the carbon fee imposed by this section, including— 


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1 ‘‘(1) requirements for the quarterly payment of 

2 such fees, and 

3 ‘‘(2) rules to ensure that no covered fuel has 

4 the carbon fee or the carbon border fee adjustment 

5 imposed upon it more than once. 

6 ‘‘SEC. 4695. CARBON CAPTURE REFUNDS. 

7 ‘‘(a) IN GENERAL.—The Secretary, in consultation 

8 with the Administrator and the heads of other relevant 

9 Federal agencies, shall prescribe regulations for providing 

10 payments to any person which captures qualified carbon 

11 oxide (as defined in subsection (c) of section 45Q) which 

12 is— 

13 ‘‘(1) disposed of by such person in secure geo14 logical storage, as described in subsection (f)(2) of 

15 such section, 

16 ‘‘(2) used by such person as a tertiary injectant 

17 in a qualified enhanced oil or natural gas recovery 

18 project (as defined in subsection (e)(2) of such sec19 tion) and disposed of by such person in secure geo20 logical storage, or 

21 ‘‘(3) utilized by such person in a manner de22 scribed in subsection (f)(5) of such section. 

23 ‘‘(b) PAYMENTS FOR CARBON CAPTURE.— 

24 ‘‘(1) IN GENERAL.—In the case of any indus25 trial facility for which carbon capture equipment has 


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1 been placed in service, the Secretary shall make pay2 ments to the owner of such facility in the same man3 ner as if such payment was a refund of an overpay4 ment of the carbon fee imposed by section 4692. 

5 ‘‘(2) AMOUNT OF PAYMENT.—The payment de6 termined under this subsection shall be an amount 

7 equal to— 

8 ‘‘(A) the metric tons of qualified carbon 

9 oxide captured and disposed of, used, or utilized 

10 in a manner consistent with subsection (a), 

11 multiplied by 

12 ‘‘(B) the carbon fee rate during the year in 

13 which the carbon fee was imposed by section 

14 4692 upon the covered fuel to which such car15 bon oxide relates. 

16 ‘‘(3) COORDINATION WITH CREDIT FOR CARBON

17 OXIDE SEQUESTRATION.—At such time that the Sec18 retary prescribes regulations implementing this sec19 tion, no payment under this section shall be allowed 

20 to any person for any unit of carbon oxide for which 

21 a credit has been allowed with respect to such unit 

22 under section 45Q. 

23 ‘‘(c) EXCEPTION.—In the case of any industrial facil24 ity which is owned by an entity that is determined to be 

25 in violation of any applicable air quality regulations, such 


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1 facility shall not be eligible for any payment under this 

2 section during the period of such violation. 

3 ‘‘SEC. 4696. CARBON BORDER FEE ADJUSTMENT. 

4 ‘‘(a) IN GENERAL.—The fees imposed by, and re5 funds allowed under, this section shall be referred to as 

6 ‘the carbon border fee adjustment’. 

7 ‘‘(b) IMPORTED COVERED FUELS FEE.—In the case 

8 of any person that imports into the United States any cov9 ered fuel, there shall be imposed a fee equal to the excess 

10 (if any) of— 

11 ‘‘(1) an amount equal to— 

12 ‘‘(A) the amount of full fuel cycle green13 house gas emissions of such fuel, multiplied by 

14 ‘‘(B) the carbon fee rate in effect for the 

15 year in which such fuel is imported, over 

16 ‘‘(2) the total foreign cost of carbon carried by 

17 such fuel. 

18 ‘‘(c) IMPORTED CARBON-INTENSIVE PRODUCTS

19 FEE.—In the case of any person that imports into the 

20 United States any carbon-intensive products, there shall 

21 be imposed a fee equal to the excess (if any) of— 

22 ‘‘(1) an amount equal to— 

23 ‘‘(A) production greenhouse gas emissions 

24 of such product, multiplied by 


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1 ‘‘(B) the carbon fee rate in effect for the 

2 year in which the production greenhouse gas 

3 emissions of such product were emitted into the 

4 atmosphere, over 

5 ‘‘(2) the total foreign cost of carbon carried by 

6 such product. 

7 ‘‘(d) REFUND ON EXPORTS FROM UNITED

8 STATES.— 

9 ‘‘(1) CARBON-INTENSIVE PRODUCTS.—Under 

10 regulations prescribed by the Secretary, there shall 

11 be allowed a credit or refund (without interest) to 

12 exporters of carbon-intensive products manufactured 

13 or produced in the United States an amount equal 

14 to the excess (if any) of— 

15 ‘‘(A) an amount equal to— 

16 ‘‘(i) the production greenhouse gas 

17 emissions of the exported carbon-intensive 

18 product, multiplied by 

19 ‘‘(ii) the carbon fee rate during the 

20 year in which the carbon fee or fluorinated 

21 greenhouse gas fee was paid upon the pro22 duction greenhouse gas emissions of the 

23 exported carbon-intensive product, over 

24 ‘‘(B) any total cost of carbon to be levied 

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1 diction to which the carbon-intensive product is 

2 to be imported. 

3 Any such credit or refund shall be allowed in the 

4 same manner as if it were an overpayment of the fee 

5 imposed by section 4692 or 4694. The Secretary 

6 shall establish fair, timely, impartial, and as nec7 essary confidential procedures by which any exporter 

8 of any product from the United States may petition 

9 the Secretary to include that exported product on 

10 the list of carbon-intensive products. 

11 ‘‘(2) COVERED FUELS.—Under regulations pre12 scribed by the Secretary, in the case of a covered 

13 fuel produced in the United States with respect to 

14 which the fee under section 4692 was paid, there 

15 shall be allowed as a credit or refund (without inter16 est) to any exporter of such covered fuels an amount 

17 equal to the excess (if any) of— 

18 ‘‘(A) an amount equal to— 

19 ‘‘(i) the full fuel cycle greenhouse gas 

20 emissions of the covered fuel, multiplied by 

21 ‘‘(ii) the carbon fee rate at the time 

22 the carbon fee was paid upon the full fuel 

23 cycle greenhouse gas emissions of the ex24 ported covered fuel, over 


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1 ‘‘(B) any total cost of carbon to be levied 

2 upon the covered fuel by a jurisdiction to which 

3 the carbon-intensive product is to be imported. 

4 Any such credit or refund shall be allowed in the 

5 same manner as if it were an overpayment of tax 

6 imposed by section 4692. 

7 ‘‘(e) DEFINITIONS.—For purposes of this section and 

8 section 4697— 

9 ‘‘(1) FOREIGN COST OF CARBON; FOREIGN CAR10 BON COSTS.—The term ‘foreign cost of carbon’ or 

11 ‘foreign carbon cost’ means the cost of any laws of 

12 a foreign jurisdiction which impose a system of cap13 and-trade with respect to, or a tax or fee on, green14 house gas. Such cost shall be determined and ex15 pressed as a price per ton of CO2-e. 

16 ‘‘(2) PRODUCTION GREENHOUSE GAS EMIS17 SIONS.—The term ‘production greenhouse gas emis18 sions’ means the quantity of greenhouse gases, ex19 pressed in metric tons of CO2-e, emitted to the at20 mosphere resulting from, nonexclusively, the produc21 tion, manufacture, assembly, transportation, or fi22 nancing of a product. 

23 ‘‘(3) TOTAL COST OF CARBON CARRIED.—The 

24 term ‘total cost of carbon carried’ means an amount 

25 equal to— 


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1 ‘‘(A) the production greenhouse gas emis2 sions of a carbon-intensive product or the full 

3 fuel cycle greenhouse gas emissions of a covered 

4 fuel, multiplied by 

5 ‘‘(B) the cost of carbon with respect to 

6 such product or fuel, reduced by any amount 

7 refunded with respect to such product or fuel 

8 by a foreign jurisdiction. 

9 The total cost of carbon carried shall be expressed 

10 as price in United States dollars. 

11 ‘‘(4) TOTAL FOREIGN COST OF CARBON CAR12 RIED.—The term ‘total foreign cost of carbon car13 ried’ means an amount equal to— 

14 ‘‘(A) the production greenhouse gas emis15 sions of a carbon-intensive product, or the full 

16 fuel cycle greenhouse gas emissions of a covered 

17 fuel, multiplied by 

18 ‘‘(B) the foreign cost of carbon with re19 spect to such product or fuel, reduced by the 

20 amount refunded with respect to such product 

21 or fuel by a foreign jurisdiction. 

22 The total foreign cost of carbon carried shall be ex23 pressed as price in United States dollars. 

24 ‘‘(5) UPSTREAM GREENHOUSE GAS EMIS25 SIONS.—The term ‘upstream greenhouse gas emisVerDate Sep 11 2014 22:34 Aug 06, 2019 Jkt 089200 PO 00000 Frm 00018 Fmt 6652 Sfmt 6201 E:\BILLS\S2284.IS S2284

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1 sions’ means the quantity of greenhouse gases, ex2 pressed in metric tons of CO2-e, emitted to the at3 mosphere resulting from, nonexclusively, the extrac4 tion, processing, transportation, financing, or other 

5 preparation of a covered fuel for use. 

6 ‘‘SEC. 4697. ADMINISTRATION OF THE CARBON BORDER 

7 FEE ADJUSTMENT. 

8 ‘‘(a) IN GENERAL.—The Secretary, in consultation 

9 with the Administrator, shall prescribe regulations and 

10 guidance which implement the carbon border fee adjust11 ment under section 4696. 

12 ‘‘(b) COLLABORATION.—In determining the produc13 tion greenhouse gas emissions of an imported carbon-in14 tensive product, the upstream greenhouse gas emissions 

15 of an imported covered fuel, the full fuel cycle greenhouse 

16 gas emissions of an imported covered fuel, or the foreign 

17 cost of carbon, or otherwise administering the carbon bor18 der fee adjustment, it is the sense of Congress that the 

19 Secretary should collaborate with authorized officers of 

20 any jurisdiction, including sub-national governments, af21 fected by the carbon border fee adjustment. 

22 ‘‘(c) METHODOLOGY.—In determining the production 

23 greenhouse gas emissions of an imported carbon-intensive 

24 product, the upstream greenhouse gas emissions of an im25 ported covered fuel, the full fuel cycle greenhouse gas 


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1 emissions of an imported covered fuel, or the foreign cost 

2 of carbon, the Secretary shall use reliable methodologies, 

3 which— 

4 ‘‘(1) as may be necessary or convenient— 

5 ‘‘(A) distinguish between different types of 

6 covered fuels, 

7 ‘‘(B) distinguish between a covered fuel’s 

8 greenhouse gas content and that covered fuel’s 

9 upstream greenhouse gas emissions, 

10 ‘‘(C) distinguish between the different 

11 types of greenhouse gas emissions which com12 pose a covered fuel’s upstream greenhouse gas 

13 emissions or greenhouse gas content, as well as 

14 the various processes which produced those 

15 emissions, and 

16 ‘‘(D) distinguish between the different 

17 types of greenhouse gas emissions which com18 pose a carbon-intensive product’s production 

19 greenhouse gas emissions, as well as the various 

20 processes which produced those emissions, 

21 ‘‘(2) ensure that no covered fuel, covered 

22 fluorinated greenhouse gas, or carbon-intensive prod23 uct has the carbon fee, the fluorinated greenhouse 

24 gas fee, or the border fee adjustment imposed upon 

25 it more than once, 


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1 ‘‘(3) ensure that the implementation of the bor2 der carbon adjustment aligns with the carbon fee 

3 and the fluorinated gas fee, 

4 ‘‘(4) in the case of incomplete data, rely upon 

5 the best available methodologies for interpolating 

6 data gaps, and 

7 ‘‘(5) are consistent with international treaties 

8 and agreements. 

9 ‘‘(d) PROCEDURE.—The Secretary shall establish 

10 fair, timely, impartial, and as necessary confidential proce11 dures by which the importer of any carbon-intensive prod12 uct or any covered fuel may petition the Secretary to re13 vise the Secretary’s determination of the production green14 house gas emissions, full fuel cycle greenhouse gas emis15 sions, or upstream greenhouse gas emissions of that im16 porter’s imported covered fuel or imported carbon-inten17 sive product, or the foreign cost of carbon carried by that 

18 importer’s imported carbon-intensive product. 

19 ‘‘SEC. 4698. ALLOCATION OF CARBON BORDER FEE ADJUST20 MENT REVENUES. 

21 ‘‘The revenues collected under section 4696 may be 

22 used to supplement appropriations made available in fiscal 

23 years 2020 and thereafter— 


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1 ‘‘(1) to U.S. Customs and Border Protection, in 

2 such amounts as are necessary to administer the 

3 carbon border fee adjustment, 

4 ‘‘(2) from the amounts remaining following pay5 ment of the expenses described in paragraph (1), to 

6 the Department of Treasury, in such amounts as are 

7 necessary to allow refunds under section 4696(e) to 

8 exporters of carbon-intensive products and exporters 

9 of covered fuels, and 

10 ‘‘(3) from the amounts remaining following pay11 ment of the expenses described in paragraphs (1) 

12 and (2)— 

13 ‘‘(A) to the Department of State and the 

14 United States Agency for International Devel15 opment for programs to address climate mitiga16 tion and adaptation in developing countries, in17 cluding contributions to the Green Climate 

18 Fund, and 

19 ‘‘(B) to the Export-Import Bank of the 

20 United States to facilitate exportation of clean 

21 energy technologies’’. 

22 (b) PAYMENTS TO FARMERS AND LANDOWNERS FOR

23 NATURE-BASED PROJECTS.— 

24 (1) IN GENERAL.—The Secretary of Agri25 culture, in consultation with the Administrator of 


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1 the Environmental Protection Agency, shall provide 

2 payments to farmers and landowners within the 

3 United States to implement carbon sequestration 

4 projects with measurable greenhouse gas reduction 

5 benefits or other nature-based projects that reduce 

6 greenhouse gas emissions, including projects for— 

7 (A) ecologically-appropriate reforestation, 

8 (B) restoration of wetlands, 

9 (C) agricultural practices such as the 

10 usage of cover crops, no till, and practices that 

11 can reduce emissions from livestock, fertilizers, 

12 and rice cultivation, and 

13 (D) other appropriate practices as deter14 mined by the Secretary of Agriculture. 

15 (2) AMOUNT OF PAYMENT.—Not later than 180 

16 days after the date of enactment of this Act, the 

17 Secretary of Agriculture, in consultation with the 

18 Administrator of the Environmental Protection 

19 Agency, shall issue regulations to determine the 

20 amount of a payment under paragraph (1), taking 

21 into account the use of certified third-party reg22 istries for verification of emissions reductions and 

23 provisions for addressing the potential imperma24 nence of carbon sequestration in biomass and soils. 


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1 (c) PAYMENTS FOR DIRECT AIR CAPTURE OF CAR2 BON DIOXIDE.— 

3 (1) IN GENERAL.—Subject to paragraph (3), 

4 the Secretary of Energy, in consultation with the 

5 Administrator of the Environmental Protection 

6 Agency and the heads of any other relevant agen7 cies, shall make payments to any direct air capture 

8 facility (as defined in section 45Q(e)(1) of the Inter9 nal Revenue Code of 1986) within the United States 

10 that uses carbon capture equipment to capture car11 bon dioxide directly from the ambient air and dis12 poses of such carbon dioxide in secure geological 

13 storage (as described in section 45Q(f)(2) of such 

14 Code). 

15 (2) PAYMENT AMOUNT.—A payment under 

16 paragraph (1) shall be in an amount equal to the 

17 product obtained by multiplying— 

18 (A) the metric tons of carbon dioxide cap19 tured and disposed of by the facility; and 

20 (B) the carbon fee rate in effect during the 

21 calendar year preceding the year in which the 

22 capture of such carbon dioxide occurs. 

23 (3) EXCEPTION.—In the case of any direct air 

24 capture facility which is owned by an entity that is 

25 determined to be in violation of any applicable air 


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1 quality regulations, such facility shall not be eligible 

2 for any payment under this section during the period 

3 of such violation. 

4 (4) COORDINATION WITH CREDIT FOR CARBON

5 DIOXIDE SEQUESTRATION.—The Secretary of En6 ergy shall not make a payment under this subsection 

7 with respect to any facility for any unit of carbon di8 oxide for which a credit has been allowed with re9 spect to such unit under section 45Q of the Internal 

10 Revenue Code of 1986. 

11 (d) COORDINATION WITH CARBON OXIDE SEQUES12 TRATION CREDIT.—Section 45Q(f) is amended by adding 

13 at the end the following new paragraph: 

14 ‘‘(8) COORDINATION WITH CARBON CAPTURE

15 AND SEQUESTRATION PAYMENTS.—No credit shall 

16 be allowed under this section with respect to any 

17 unit of carbon oxide which has received any refund 

18 or payment with respect to such unit under section 

19 3(c) of the Climate Action Rebate Act of 2019 or 

20 section 4695.’’. 

21 (e) INTERNATIONAL NEGOTIATIONS.—The Congress 

22 finds the international mitigation of greenhouse gas emis23 sions to be of national importance. Therefore, the Con24 gress encourages the Secretary of State, or the Secretary’s 

25 designee, to commence and complete negotiations with 


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1 other nations with the goal of forming treaties, environ2 mental agreements, accords, partnerships, or any other in3 strument that effectively reduces global greenhouse gas 

4 emissions to 10 percent of 2017 levels by 2050 and which 

5 respect the principle of common but differentiated respon6 sibilities and respective capabilities. 

7 SEC. 4. ESTABLISHMENT OF THE CLIMATE ACTION REBATE 

8 FUND. 

9 (a) IN GENERAL.—Subchapter A of chapter 98 of the 

10 Internal Revenue Code of 1986 is amended by adding at 

11 the end the following: 

12 ‘‘SEC. 9512. CLIMATE ACTION REBATE FUND. 

13 ‘‘(a) ESTABLISHMENT AND FUNDING.—There is 

14 hereby established in the Treasury of the United States 

15 a trust fund to be known as the ‘Climate Action Rebate 

16 Fund’, consisting of such amounts as may be appropriated 

17 to such trust fund as provided for in this section. 

18 ‘‘(b) TRANSFERS TO THE CLIMATE ACTION REBATE

19 FUND.—There is hereby appropriated to the Climate Ac20 tion Rebate Fund amounts equal to the fees received into 

21 the Treasury less any amounts refunded or paid under 

22 sections 4692(d) and 4695 for each month. 

23 ‘‘(c) EXPENDITURES.—Amounts in the trust fund 

24 shall be available for the following purposes: 


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1 ‘‘(1) CARBON FEE ADMINISTRATIVE EX2 PENSES.—So much of the expenses as are necessary 

3 to administer sections 4692 through 4695 for any 

4 year as does not to exceed 0.60 percent of the 

5 amounts appropriated to the Climate Action Rebate 

6 Fund for the previous year. 

7 ‘‘(2) CLIMATE ACTION REBATE FUND ADMINIS8 TRATIVE EXPENSES.—So much of the expenses nec9 essary to administer the Climate Action Rebate 

10 Fund for each year, as does not exceed— 

11 ‘‘(A) in the case of the first 5 fiscal years 

12 ending after the date of the enactment of this 

13 section, the administrative expenses for any 

14 year may not exceed 5 percent of amounts ap15 propriated to the Climate Action Rebate Fund 

16 during such year, and 

17 ‘‘(B) in the case of any fiscal year there18 after, 1.5 percent of the 5-year rolling average 

19 of the amounts appropriated to the Climate Ac20 tion Rebate Fund. 

21 ‘‘(3) CLIMATE ACTION REBATE PAYMENTS.— 

22 ‘‘(A) IN GENERAL.—For each fiscal year, 

23 the amounts remaining in the Climate Action 

24 Rebate Fund following payment of expenses 


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1 under paragraphs (1) and (2) shall be appor2 tioned as follows: 

3 ‘‘(i) 70 percent of such amounts for 

4 the purposes described in subsection (d), 

5 ‘‘(ii) 20 percent of such amounts for 

6 the purposes described in subsection (e), 

7 ‘‘(iii) 5 percent of such amounts for 

8 the purposes described in subsection (f), 

9 and 

10 ‘‘(iv) 5 percent of such amounts for 

11 the purposes described in subsection (g). 

12 ‘‘(d) CARBON DIVIDEND.— 

13 ‘‘(1) IN GENERAL.—From the amounts in the 

14 Carbon Dividend Trust Fund made available under 

15 subsection (c)(3)(A)(i) for any year, the Secretary 

16 shall, for each month beginning more than 270 days 

17 after the date of the enactment of the Climate Ac18 tion Rebate Act of 2019, make carbon dividend pay19 ments to each eligible individual. 

20 ‘‘(2) PRO-RATA SHARE.—A carbon dividend 

21 payment is one pro-rata share for each adult and 

22 half a pro-rata share for each child under 19 years 

23 old of amounts available for the month in the Cli24 mate Action Rebate Fund. 


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1 ‘‘(3) ELIGIBLE INDIVIDUAL.—The term ‘eligible 

2 individual’ means, with respect to any month, any 

3 natural living person who has a valid Social Security 

4 number or taxpayer identification number and is a 

5 citizen or lawful resident of the United States. The 

6 Secretary is authorized to verify an individual’s eligi7 bility to receive a carbon dividend payment. 

8 ‘‘(4) PHASEOUT.— 

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

10 taxpayer whose modified adjusted gross income 

11 for the most recent taxable year for which a re12 turn has been filed exceeds the threshold 

13 amount, the amount of the carbon dividend oth14 erwise payable to any household member of the 

15 taxpayer under this subsection shall be reduced 

16 (but not below zero) by a dollar amount equal 

17 to 5 percent of such dividend (as determined 

18 before application of this paragraph) for each 

19 $1,000 (or fraction thereof) by which such tax20 payer’s modified adjusted gross income exceeds 

21 the threshold amount. 

22 ‘‘(B) DEFINITIONS.—For purposes of this 

23 paragraph— 

24 ‘‘(i) MODIFIED ADJUSTED GROSS IN25 COME.—The term ‘modified adjusted gross 


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1 income’ means adjusted gross income in2 creased by any amount excluded from 

3 gross income under section 911, 931, or 

4 933. 

5 ‘‘(ii) HOUSEHOLD MEMBER.—The 

6 term ‘household member of the taxpayer’ 

7 means the taxpayer, the taxpayer’s spouse, 

8 and any dependent of the taxpayer. 

9 ‘‘(iii) THRESHOLD AMOUNT.—The 

10 term ‘threshold amount’ means— 

11 ‘‘(I) $130,000 in the case of a 

12 joint return, 

13 ‘‘(II) $80,000 in the case of an 

14 individual who is not married, and 

15 ‘‘(III) $65,000 in the case of a 

16 married individual filing a separate 

17 return. 

18 ‘‘(C) REGULATIONS.—The Secretary shall 

19 prescribe such regulations, and other guidance, 

20 as may be necessary to carry out the purposes 

21 of this paragraph, including establishment of 

22 rules for eligible individuals who have not filed 

23 a recent tax return. 


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1 ‘‘(5) FEE TREATMENT OF PAYMENTS.— 

2 Amounts paid under this subsection shall be includ3 ible in gross income. 

4 ‘‘(6) FEDERAL PROGRAMS AND FEDERAL AS5 SISTED PROGRAMS.—The carbon dividend amount 

6 received by any eligible individual shall not be taken 

7 into account as income and shall not be taken into 

8 account as resources for purposes of determining the 

9 eligibility of such individual or any other individual 

10 for benefits or assistance, or the amount or extent 

11 of benefits or assistance, under any Federal program 

12 or under any State or local program financed in 

13 whole or in part with Federal funds. 

14 ‘‘(7) ADVANCE PAYMENT.—The Secretary shall 

15 transfer to the Climate Action Rebate Fund such 

16 amounts as are necessary for the disbursement of an 

17 advanced carbon dividend to all eligible individuals 

18 as follows: 

19 ‘‘(A) An advanced carbon dividend shall be 

20 the same as the anticipated first carbon divi21 dend required to be distributed under para22 graph (1) and shall be distributed the month 

23 prior to the first collection of the carbon fee. 

24 ‘‘(B) Total amounts disbursed as advanced 

25 carbon dividends shall be deducted from the 


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1 carbon dividends on a pro-rata basis over the 

2 first 3 years after the disbursement of the first 

3 carbon dividends. 

4 ‘‘(e) INFRASTRUCTURE.—From the amounts in the 

5 Carbon Dividend Trust Fund made available under sub6 section (c)(3)(A)(ii) for any year, the Secretary shall 

7 transfer such amounts as follows: 

8 ‘‘(1) 50 percent to the Highway Trust Fund 

9 under section 9503, with— 

10 ‘‘(A) 80 percent of such amount allocated 

11 to the Highway Account for the payment of ob12 ligations incurred in carrying out Federal-aid 

13 highway and highway safety construction pro14 grams authorized under title 23, United States 

15 Code, and 

16 ‘‘(B) 20 percent of such amount allocated 

17 to the Mass Transit Account for the payment of 

18 obligations incurred in carrying out transit pro19 grams authorized under— 

20 ‘‘(i) chapter 53 of title 49, United 

21 States Code, 

22 ‘‘(ii) section 20005(b) of the Federal 

23 Public Transportation Act of 2012 (49 

24 U.S.C. 5303 note; Public Law 112–141), 

25 and 


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1 ‘‘(iii) section 3006(b) of the Federal 

2 Public Transportation Act of 2015 (49 

3 U.S.C. 5310 note; Public Law 114–94). 

4 ‘‘(2) 2.5 percent to the Department of Trans5 portation for national infrastructure investments for 

6 innovative multimodal projects (also known as the 

7 Better Utilizing Investments to Leverage Develop8 ment (BUILD) Transportation discretionary grant 

9 program). 

10 ‘‘(3) 2.5 percent to the Department of Trans11 portation to make grants to the National Railroad 

12 Passenger Corporation for intercity passenger rail 

13 infrastructure, as authorized by section 11101 of the 

14 Passenger Rail Reform and Investment Act of 2015 

15 (title XI of division A of Public Law 114–94) and 

16 sections 22907 and 24911 of title 49, United States 

17 Code. 

18 ‘‘(4) 5 percent to the Airport and Airway Trust 

19 Fund under section 9502 for the payment of obliga20 tions incurred in carrying out aviation programs au21 thorized under subtitle VII of title 49, United States 

22 Code. 

23 ‘‘(5) 2.5 percent to the Department of Trans24 portation to support deployment of alternative fuel 


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1 vehicles, including electric vehicle charging stations 

2 and hydrogen fueling infrastructure. 

3 ‘‘(6) 5 percent to the Environmental Protection 

4 Agency for drinking water infrastructure programs 

5 under the Safe Drinking Water Act (42 U.S.C. 300f 

6 et seq.) and wastewater and clean water infrastruc7 ture programs under the Federal Water Pollution 

8 Control Act (33 U.S.C. 1251 et seq.). 

9 ‘‘(7) 2.5 percent to the Secretary of Agriculture 

10 for rural water or wastewater grants or direct or 

11 guaranteed loans under the Consolidated Farm and 

12 Rural Development Act (7 U.S.C. 1921 et seq.). 

13 ‘‘(8) 1.5 percent to the Federal Communica14 tions Commission to expand broadband access in 

15 rural areas. 

16 ‘‘(9) 5 percent to the Army Corps of Engineers 

17 for water resources development projects. 

18 ‘‘(10) 2.5 percent for the Community Develop19 ment Block Grant program under title I of the 

20 Housing and Community Development Act of 1974 

21 (42 U.S.C. 5401 et seq.) to assist States, units of 

22 general local government, and Indian tribes, as those 

23 terms are defined in section 101 of such Act (42 

24 U.S.C. 5301), with planning and implementation of 

25 projects to support lowering emissions, and climate 


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1 impact adaptation, including improving infrastruc2 ture resilience, increasing transit and housing den3 sity, and local economic development. 

4 ‘‘(11) 2.5 percent to the National Oceanic and 

5 Atmospheric Administration for coastal resiliency 

6 programs and ocean observing and monitoring pro7 grams. 

8 ‘‘(12) 2.5 percent to the Department of the In9 terior for maintenance and infrastructure upgrades 

10 on public land. 

11 ‘‘(13) 1.5 percent to the Hazardous Substance 

12 Superfund established under section 9507. 

13 ‘‘(14) 1.5 percent to the Abandoned Mine Rec14 lamation Fund created by section 401 of the Surface 

15 Mining Control and Reclamation Act of 1977 (30 

16 U.S.C. 1231). 

17 ‘‘(15) Notwithstanding subsection (b)(2) of sec18 tion 303 of Public Law 96–451 (16 U.S.C. 1606a), 

19 1.5 percent to the Reforestation Trust Fund estab20 lished by subsection (a) of that section. 

21 ‘‘(16) 2.5 percent to the Department of Energy 

22 for energy efficiency programs, including— 

23 ‘‘(A) the Weatherization Assistance Pro24 gram for Low-Income Persons established 

25 under part A of title IV of the Energy ConVerDate Sep 11 2014 22:34 Aug 06, 2019 Jkt 089200 PO 00000 Frm 00035 Fmt 6652 Sfmt 6201 E:\BILLS\S2284.IS S2284

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1 servation and Production Act (42 U.S.C. 6861 

2 et seq.), 

3 ‘‘(B) State energy programs, 

4 ‘‘(C) the Clean Cities program, 

5 ‘‘(D) support for efficiency upgrades, in6 cluding energy savings performance contracting, 

7 in Federal buildings, and 

8 ‘‘(E) the creation and initial funding of an 

9 Energy Efficiency State Revolving Fund, to be 

10 modeled after— 

11 ‘‘(i) State water pollution control re12 volving funds established under title VI of 

13 the Federal Water Pollution Control Act 

14 (33 U.S.C. 1381 et seq.), and 

15 ‘‘(ii) State drinking water treatment 

16 revolving loan funds established under sec17 tion 1452 of the Safe Drinking Water Act 

18 (42 U.S.C. 300j–12). 

19 ‘‘(17) 2.5 percent to the Secretary of Health 

20 and Human Services for a new program within the 

21 partnerships for State and regional hospital pre22 paredness program under section 319C–2 of the 

23 Public Health Service Act (42 U.S.C. 247d–3b) to 

24 fund infrastructure and facility improvements that 

25 support the climate resiliency and preparedness of 


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1 hospitals and community health centers, including 

2 priority support for critical access hospitals (as de3 fined in section 1861(mm)(1) of the Social Security 

4 Act (42 U.S.C. 1395x(mm)(1)), safety net hospitals 

5 (as defined by the Center for Medicare and Medicaid 

6 Innovation), and community health centers in places 

7 experiencing heavy air pollution. 

8 ‘‘(18) 2.5 percent to the Secretary of Veterans 

9 Affairs to support resiliency and preparedness for 

10 Department of Veterans Affairs medical facilities. 

11 ‘‘(19) 1.5 percent to the Secretary of Agri12 culture for— 

13 ‘‘(A) energy programs under title IX of the 

14 Farm Security and Rural Investment Act of 

15 2002 (7 U.S.C. 8101 et seq.), and 

16 ‘‘(B) watershed and flood prevention oper17 ations under the Watershed Protection and 

18 Flood Prevention Act (16 U.S.C. 1001 et seq.) 

19 and the Act of December 22, 1944 (commonly 

20 known as the ‘Flood Control Act of 1944’) (58 

21 Stat. 887, chapter 665; 33 U.S.C. 701–1 et 

22 seq.). 

23 ‘‘(20) 2.5 percent to the Secretary of Agri24 culture for the program established under section 

25 3(b) of the Climate Action Rebate Act of 2019. 


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1 ‘‘(f) INNOVATION.— 

2 ‘‘(1) IN GENERAL.—From the amounts in the 

3 Carbon Dividend Trust Fund made available under 

4 subsection (c)(3)(A)(iii) for any year, the Secretary 

5 shall transfer such amounts to the Secretary of En6 ergy to carry out the purposes described in para7 graph (2). 

8 ‘‘(2) EXPENDITURES.—The Secretary of En9 ergy shall use the funds transferred under para10 graph (1) to support high-impact research, develop11 ment, demonstration, technology transfer, and com12 mercialization of technologies that reduce or elimi13 nate greenhouse gas emissions, including— 

14 ‘‘(A) energy storage technologies, including 

15 grid integration of storage, 

16 ‘‘(B) carbon capture, utilization, and se17 questration, including direct air capture, 

18 ‘‘(C) next-generation nuclear technologies, 

19 ‘‘(D) energy efficiency, including in build20 ings and the industrial sector, 

21 ‘‘(E) electric grid modernization, 

22 ‘‘(F) sustainable transportation, including 

23 hydrogen fuel cell and electric vehicles, and 


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•S 2284 IS

1 ‘‘(G) the direct air capture program estab2 lished under section 3(c) of the Climate Action 

3 Rebate Act of 2019. 

4 ‘‘(3) SPECIFIC PROGRAMS.—In carrying out 

5 paragraph (2), the Secretary of Energy shall include 

6 support for offices under the Department of Energy 

7 and programs that support commercialization and 

8 innovative collaboration, including Advanced Re9 search Projects Agency-Energy, the Loan Programs 

10 Office, energy innovation hubs, energy frontier re11 search centers, regionally centered innovation pro12 grams, and the Manufacturing USA network. 

13 ‘‘(4) COLLABORATION WITH OTHER AGEN14 CIES.—The Secretary of Energy shall collaborate 

15 with other appropriate agencies, including by shar16 ing the funds transferred under paragraph (1), to 

17 support overlapping areas of innovation, including— 

18 ‘‘(A) biomass and bioenergy with the De19 partment of Agriculture, 

20 ‘‘(B) nature-based solutions for carbon se21 questration with the Departments of Agri22 culture, Commerce, and the Interior, 

23 ‘‘(C) export of technologies that will help 

24 other countries reduce or eliminate greenhouse 


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1 gas emissions with the Departments of Com2 merce and State, and 

3 ‘‘(D) other such collaborations as deter4 mined necessary by the Secretary of Energy to 

5 achieve the goals outlined in paragraph (2). 

6 ‘‘(g) TRANSITION ASSISTANCE.—From the amounts 

7 in the Carbon Dividend Trust Fund made available under 

8 subsection (c)(3)(A)(iv) for any year, the Secretary shall 

9 transfer such amounts as follows: 

10 ‘‘(1) 40 percent to the Department of Labor for 

11 the establishment and initial funding of a program, 

12 to be modeled after the trade adjustment assistance 

13 for workers program under chapter 2 of title II of 

14 the Trade Act of 1974 (19 U.S.C. 2271 et seq.), to 

15 assist workers in industries that may be displaced as 

16 a result of the fees imposed under sections 4692 and 

17 4694, including assistance with respect to— 

18 ‘‘(A) wage insurance, 

19 ‘‘(B) relocation expenses, 

20 ‘‘(C) early retirement, 

21 ‘‘(D) pension and health benefits, including 

22 (if applicable) the 1974 UMWA Pension Plan 

23 (as defined in section 9701(a)(3)), 

24 ‘‘(E) worker retraining, and 


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1 ‘‘(F) other assistance that the Secretary of 

2 Labor determines appropriate. 

3 ‘‘(2) 20 percent to the Department of Energy 

4 to make grants to States, territories, and tribes in 

5 order to assist communities facing significantly in6 creased energy costs as a result of the fees imposed 

7 under sections 4692 and 4694, in particular rural 

8 and low-income communities. 

9 ‘‘(3) 10 percent to the Department of Health 

10 and Human Services for the low-income home en11 ergy assistance program established under the Low12 Income Home Energy Assistance Act of 1981 (42 

13 U.S.C. 8621 et seq.). 

14 ‘‘(4) 30 percent to the Economic Development 

15 Administration for programs that support economic 

16 development and diversity in communities and areas 

17 dependent on industries that may be affected by the 

18 fees imposed under sections 4692 and 4694, includ19 ing— 

20 ‘‘(A) the Economic Adjustment Assistance 

21 Program, and 

22 ‘‘(B) Partnerships for Opportunity and 

23 Workforce and Economic Revitalization. 

24 ‘‘(h) FUNDING REQUIREMENTS.— 


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1 ‘‘(1) IN GENERAL.—All uses of funding trans2 ferred under subsection (e) through (g) shall be in 

3 accordance with practices that protect American 

4 manufacturing, pay prevailing wages and benefits, 

5 and further reduce emissions when possible. 

6 ‘‘(2) USE OF AMERICAN GOODS.— 

7 ‘‘(A) IN GENERAL.—None of the funds 

8 made available by this section may be used for 

9 a project for the construction, alteration, main10 tenance, or repair of a public building or public 

11 work unless all of the iron, steel, cement, and 

12 manufactured goods used in the project are 

13 produced in the United States. 

14 ‘‘(B) EXCEPTION.—Subparagraph (A) 

15 shall not apply in any case or category of cases 

16 in which the head of the Federal department or 

17 agency involved finds that— 

18 ‘‘(i) applying subparagraph (A) would 

19 be inconsistent with the public interest, 

20 ‘‘(ii) iron, steel, cement, and the rel21 evant manufactured goods are not pro22 duced in the United States in sufficient 

23 and reasonably available quantities and of 

24 a satisfactory quality, or 


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1 ‘‘(iii) inclusion of iron, steel, cement, 

2 and manufactured goods produced in the 

3 United States will increase the cost of the 

4 overall project by more than 25 percent. 

5 ‘‘(C) PUBLICATION.—If the head of a Fed6 eral department or agency determines that it is 

7 necessary to waive the application of subpara8 graph (A) based on a finding under subpara9 graph (B), the head of the department or agen10 cy shall publish in the Federal Register a de11 tailed written justification as to why the provi12 sion is being waived. 

13 ‘‘(D) INTERNATIONAL AGREEMENTS.— 

14 This section shall be applied in a manner con15 sistent with United States obligations under 

16 international agreements. 

17 ‘‘(3) WAGE RATE REQUIREMENTS.—Notwith18 standing any other provision of law, all laborers and 

19 mechanics employed by contractors and subcontrac20 tors on projects funded directly by or assisted in 

21 whole or in part by the Climate Act Rebate Fund 

22 shall be paid wages at rates not less than those pre23 vailing on projects of a similar character in the lo24 cality as determined by the Secretary of Labor in ac25 cordance with subchapter IV of chapter 31 of title 


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1 40, United States Code. With respect to the labor 

2 standards specified in this paragraph, the Secretary 

3 of Labor shall have the authority and functions set 

4 forth in Reorganization Plan Numbered 14 of 1950 

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

6 title 40, United States Code. 

7 ‘‘(4) ENERGY EFFICIENCY STATE REVOLVING

8 FUND.—For fiscal year 2020 and each fiscal year 

9 thereafter, the labor standards specified in para10 graph (3) shall apply to projects assisted in whole or 

11 in part with recycled funds, including principal re12 payments and interest earnings, made available by 

13 the Energy Efficiency State Revolving Fund estab14 lished pursuant to subsection (e)(16)(E). 

15 ‘‘(5) EMISSIONS REDUCTIONS.—Whenever pos16 sible, materials used for projects funded by this sec17 tion shall be chosen with respect to minimizing their 

18 lifecycle emissions, as determined by the Adminis19 trator. 

20 ‘‘(6) NATURAL INFRASTRUCTURE.—Whenever 

21 possible, projects funded by subsection (e) shall 

22 prioritize consideration of natural features and na23 ture-based features, as defined in section 1184(a) of 

24 the Water Infrastructure Improvements for the Na25 tion Act (33 U.S.C. 2289a(a)). 


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1 ‘‘(i) SUNSET.— 

2 ‘‘(1) IN GENERAL.—For any fiscal year begin3 ning after the date on which the Secretary deter4 mines that— 

5 ‘‘(A) pursuant to section 4693, the emis6 sions of greenhouse gases from covered fuels for 

7 the most recent calendar year is equal to or less 

8 than 10 percent of the greenhouse gas emis9 sions from covered fuels for calendar year 2017; 

10 and 

11 ‘‘(B) the monthly carbon dividend payment 

12 made to an adult who is an eligible individual 

13 pursuant to subsection (d) has been less than 

14 $20 for the preceding 3 calendar years, 

15 no amounts may be transferred from Climate Action 

16 Rebate Fund for any purpose described in sub17 section (c)(3), and any amounts remaining in the 

18 Climate Action Rebate Fund shall be transferred to 

19 the general fund of the Treasury of the United 

20 States. 

21 ‘‘(2) INFLATION ADJUSTMENT.—In the case of 

22 any year beginning after 2020, the dollar amount 

23 under paragraph (1)(B) shall be increased by an 

24 amount equal to— 

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


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•S 2284 IS

1 ‘‘(B) the cost-of-living adjustment deter2 mined under section 1(f)(3) for the calendar 

3 year in which the taxable year begins, deter4 mined by substituting ‘calendar year 2017’ for 

5 ‘calendar year 2016’ in subparagraph (A)(ii) 

6 thereof. 

7 ‘‘(j) ADMINISTRATIVE AUTHORITY.—The Secretary, 

8 in coordination with the heads of other relevant Federal 

9 agencies, shall promulgate rules, guidance, and regula10 tions useful and necessary to implement the Climate Ac11 tion Rebate Fund.’’. 

12 (b) REVENUES DEDICATED TO TRUST FUNDS.— 

13 (1) AIRPORT AND AIRWAY TRUST FUND.—Sec14 tion 9502(b)(1) of the Internal Revenue Code of 

15 1986 is amended— 

16 (A) by inserting ‘‘and fees’’ after ‘‘the 

17 taxes’’, and 

18 (B) by striking ‘‘and’’ at the end of sub19 paragraph (C) and by inserting after subpara20 graph (D) the following new subparagraph: 

21 ‘‘(E) section 9512(e)(4) (relating to carbon 

22 fee), and’’. 

23 (2) HIGHWAY TRUST FUND.—Section 

24 9503(b)(1) of the Internal Revenue Code of 1986 is 

25 amended— 


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•S 2284 IS

1 (A) by inserting ‘‘and fees’’ after ‘‘equiva2 lent to the taxes’’, and 

3 (B) by striking ‘‘and’’ at the end of sub4 paragraph (D), by striking the period at the 

5 end of subparagraph (E) and inserting ‘‘, and’’, 

6 and by inserting after subparagraph (E) the 

7 following new subparagraph: 

8 ‘‘(F) section 9512(e)(1) (relating to carbon 

9 fee).’’. 

10 (c) CLERICAL AMENDMENT.—The table of sections 

11 for subchapter A of chapter 98 of such Code is amended 

12 by adding at the end the following new item: 

‘‘Sec. 9512. Climate Action Rebate Fund.’’. 

13 SEC. 5. DISCLOSURE OF RETURN INFORMATION. 

14 Section 6103(l) of the Internal Revenue Code of 1986 

15 is amended by adding at the end the following new para16 graphs: 

17 ‘‘(23) DISCLOSURE OF RETURN INFORMATION

18 RELATING TO CARBON DIVIDEND PAYMENTS.— 

19 ‘‘(A) DEPARTMENT OF TREASURY.—Re20 turn information with respect to any taxpayer 

21 shall, without written request, be open to in22 spection by or disclosure to officers and employ23 ees of the Department of the Treasury whose 

24 official duties require such inspection or disclo25 sure for purposes of administering section 


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•S 2284 IS

1 9512(d) (relating the carbon dividend payments 

2 from the Climate Action Rebate Fund). 

3 ‘‘(B) COMMISSIONER OF SOCIAL SECU4 RITY.—The Commissioner of Social Security 

5 shall, on written request, disclose to officers 

6 and employees of the Department of the Treas7 ury return information which has been disclosed 

8 to the Social Security Administration as is nec9 essary to administer section 9512(d). 

10 ‘‘(C) RESTRICTION ON DISCLOSURE.—In11 formation disclosed under this paragraph shall 

12 be disclosed only for purposes of, and to the ex13 tent necessary in, carrying out section 

14 9512(d).’’. 

15 SEC. 6. EFFECTIVE DATE. 

16 The amendments made by this Act shall apply to any 

17 calendar year beginning after the date of enactment of this 

18 Act. 

19 SEC. 7. PRINCIPLE OF INTERPRETATION. 

20 In the case of ambiguity, the texts of this statute and 

21 its amending texts shall be interpreted so as to allow for 

22 the most effective abatement of greenhouse gas emissions. 

23 SEC. 8. NO PREEMPTION OF STATE LAW. 

24 Nothing in this Act or any regulations promulgated 

25 under this Act shall preempt or supersede, or be interVerDate Sep 11 2014 22:34 Aug 06, 2019 Jkt 089200 PO 00000 Frm 00048 Fmt 6652 Sfmt 6201 E:\BILLS\S2284.IS S2284

kjohnson on DSK79L0C42 with BILLS
49 

•S 2284 IS

1 preted to preempt or supersede, any State law or regula2 tion. 

Æ 


kjohnson on DSK79L0C42 with BILLS