II 

117TH CONGRESS 

2D SESSION S. 4355 

To amend the Internal Revenue Code of 1986 to create a carbon border 

adjustment based on carbon intensity, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 7, 2022 

Mr. WHITEHOUSE (for himself, Mr. COONS, Mr. SCHATZ, and Mr. HEINRICH) 

introduced the following bill; which was read twice and referred to the 

Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to create 

a carbon border adjustment based on carbon intensity, 

and for other purposes. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Clean Competition 

5 Act’’. 

6 SEC. 2. CARBON INTENSITY CHARGE. 

7 (a) IN GENERAL.—Chapter 38 of the Internal Rev8 enue Code of 1986 is amended by adding at the end the 

9 following new subchapter: 


pamtmann on DSKBC07HB2PROD with BILLS
2 

•S 4355 IS

1 ‘‘Subchapter E—Carbon Intensity Charge 

‘‘Sec. 4691. Calculation of carbon intensity. 

‘‘Sec. 4692. Imposition of carbon intensity charge. 

‘‘Sec. 4693. Rebate. 

‘‘Sec. 4694. Definitions. 

2 ‘‘SEC. 4691. CALCULATION OF CARBON INTENSITY. 

3 ‘‘(a) REPORTING REQUIREMENTS.—Not later than 

4 June 30, 2025, and annually thereafter, any covered enti5 ty shall, for each eligible facility operated by such entity, 

6 report to the Secretary with respect to the following: 

7 ‘‘(1) Any information required to be reported to 

8 the Administrator under the Greenhouse Gas Re9 porting Program (or which would be required to be 

10 reported notwithstanding any other provision of law 

11 prohibiting the implementation of or use of funds for 

12 such requirements) for the preceding calendar year. 

13 ‘‘(2) The total amount of electricity used at 

14 such facility during the preceding calendar year, in15 cluding— 

16 ‘‘(A) whether such electricity was provided 

17 through the electric grid or a dedicated genera18 tion source, 

19 ‘‘(B) the terms of any power purchase 

20 agreements with respect to such facility, and 

21 ‘‘(C) with respect to any electricity which 

22 was not provided through the electric grid, the 

23 greenhouse gas emissions associated with the 


pamtmann on DSKBC07HB2PROD with BILLS
3 

•S 4355 IS

1 production of such electricity, provided that 

2 such emissions are not reported pursuant to 

3 paragraph (1). 

4 ‘‘(3) The total weight (expressed in tons) of 

5 each covered primary good produced at such facility 

6 during the preceding calendar year. 

7 ‘‘(b) CALCULATION.— 

8 ‘‘(1) CARBON INTENSITY.— 

9 ‘‘(A) ELIGIBLE FACILITY.—For purposes 

10 of this subchapter, for each calendar year, the 

11 carbon intensity with respect to any eligible fa12 cility shall be an amount equal to the quotient 

13 of— 

14 ‘‘(i) the covered emissions (as deter15 mined under paragraph (2)) with respect 

16 to such facility, divided by 

17 ‘‘(ii) the total weight (expressed in 

18 tons) of covered primary goods produced at 

19 such facility during the preceding calendar 

20 year. 

21 ‘‘(B) COVERED NATIONAL INDUSTRY.— 

22 For purposes of this subchapter, the carbon in23 tensity with respect to any covered national in24 dustry shall be an amount equal to the quotient 

25 of— 


pamtmann on DSKBC07HB2PROD with BILLS
4 

•S 4355 IS

1 ‘‘(i) an amount equal to the sum of 

2 the covered emissions (as determined 

3 under paragraph (2)) with respect to all el4 igible facilities which produce covered pri5 mary goods which are included within such 

6 industry for calendar year 2024, divided by 

7 ‘‘(ii) the total weight (expressed in 

8 tons) of covered primary goods produced at 

9 all such eligible facilities during such year. 

10 ‘‘(C) PETITION FOR SPECIFIC GOODS.— 

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

12 covered national industry which produces 

13 more than 1 covered primary good, a cov14 ered entity may file a petition with the 

15 Secretary to determine the carbon intensity 

16 with respect to a specific covered primary 

17 good. 

18 ‘‘(ii) REVIEW.—With respect to any 

19 covered primary good which is included in 

20 a petition described in clause (i), the Sec21 retary (in coordination with the Adminis22 trator and the Secretary of Energy) shall 

23 approve such petition if— 

24 ‘‘(I) the chemical, physical, or 

25 mechanical production processes for 


pamtmann on DSKBC07HB2PROD with BILLS
5 

•S 4355 IS

1 such good are substantially different 

2 as compared to other covered primary 

3 goods produced within the same cov4 ered national industry, and 

5 ‘‘(II) the carbon intensity deter6 mined with respect to such good is at 

7 least 25 percent greater than the car8 bon intensity determined for other 

9 covered primary goods produced with10 in the same covered national industry. 

11 ‘‘(iii) RECALCULATION.—In the case 

12 of any petition described in clause (i) 

13 which is approved by the Secretary pursu14 ant to clause (ii), the Secretary (in coordi15 nation with the Administrator) shall rede16 termine the carbon intensity with respect 

17 to the covered national industry which in18 cludes production of the covered primary 

19 good which is the subject of such petition 

20 by excluding any covered emissions associ21 ated with the production of such good for 

22 purposes of the determination made under 

23 subparagraph (B) for such industry. 

24 ‘‘(D) DETERMINATION.—Any determina25 tion of carbon intensity under this paragraph 


pamtmann on DSKBC07HB2PROD with BILLS
6 

•S 4355 IS

1 shall be made by the Secretary in coordination 

2 with the Administrator and the Secretary of 

3 Energy. 

4 ‘‘(2) COVERED EMISSIONS.— 

5 ‘‘(A) IN GENERAL.—For purposes of this 

6 subsection, for each calendar year, the amount 

7 of covered emissions with respect to any eligible 

8 facility shall be an amount (as determined by 

9 the Secretary, in coordination with the Admin10 istrator) equal to— 

11 ‘‘(i) the amount equal to the sum of— 

12 ‘‘(I) the total greenhouse gas 

13 emissions associated with the produc14 tion of covered primary goods at such 

15 facility during the preceding calendar 

16 year (as reported pursuant to sub17 section (a)), plus 

18 ‘‘(II) the total greenhouse gas 

19 emissions associated with any elec20 tricity used at such facility for the 

21 production of such goods during the 

22 preceding calendar year, minus 

23 ‘‘(ii) the total greenhouse gas emis24 sions which are captured and disposed of 

25 in secure geological storage (in compliance 


pamtmann on DSKBC07HB2PROD with BILLS
7 

•S 4355 IS

1 with the regulations established under sec2 tion 45Q(f)(2)) during the preceding cal3 endar year. 

4 ‘‘(B) DIRECT AIR CAPTURE.—For pur5 poses of subparagraph (A)(ii), in the case of 

6 any greenhouse gas emissions which are cap7 tured directly from the ambient air, the oper8 ator of the facility which captured such emis9 sions may apportion such emissions amongst 

10 any eligible facilities which are under common 

11 control of such operator. 

12 ‘‘(C) EMISSIONS FOR ELECTRICITY

13 USED.— 

14 ‘‘(i) IN GENERAL.—For purposes of 

15 subparagraph (A)(i)(II), the amount of 

16 greenhouse gas emissions associated with 

17 electricity provided through the electric 

18 grid shall be determined based on the aver19 age carbon intensity for the regional grid 

20 in which the eligible facility is located for 

21 the preceding calendar year. 

22 ‘‘(ii) EXCEPTION.—In the case of an 

23 eligible facility which is subject to a power 

24 purchase agreement which guarantees that 

25 any electricity provided under such agreeVerDate Sep 11 2014 16:51 Jun 09, 2022 Jkt 029200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S4355.IS S4355

pamtmann on DSKBC07HB2PROD with BILLS
8 

•S 4355 IS

1 ment is generated not less than 15 minutes 

2 prior to use by such facility and within the 

3 same regional transmission zone as such 

4 facility— 

5 ‘‘(I) clause (i) shall not apply, 

6 and 

7 ‘‘(II) the amount of greenhouse 

8 gas emissions associated with such 

9 electricity shall be determined based 

10 on the average carbon intensity of the 

11 electricity provided under such agree12 ment. 

13 ‘‘(3) IMPORTED GOODS.— 

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

15 covered primary good which is imported into 

16 the United States, the carbon intensity with re17 spect to such good shall be determined by the 

18 Secretary (in coordination with the relevant 

19 parties) based on— 

20 ‘‘(i) the carbon intensity of the gen21 eral economy of the country of origin of 

22 such good, or 

23 ‘‘(ii) if the Secretary (in coordination 

24 with the relevant parties) determines that 

25 transparent, verifiable, and reliable inforVerDate Sep 11 2014 16:51 Jun 09, 2022 Jkt 029200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S4355.IS S4355

pamtmann on DSKBC07HB2PROD with BILLS
9 

•S 4355 IS

1 mation is available with respect to any cov2 ered national industry in the country of or3 igin of such good and that such country of 

4 origin is a transparent market economy in 

5 which inter-firm resource shuffling is un6 likely to occur, the carbon intensity of the 

7 covered national industry in such country 

8 which includes production of such good. 

9 ‘‘(B) PETITION.— 

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

11 entity which imports a covered primary 

12 good for which the carbon intensity can be 

13 determined under subparagraph (A)(ii), 

14 such entity may file a petition with the 

15 Secretary to determine the charge under 

16 section 4692, if any, based on the average 

17 carbon intensity with respect to the pro18 duction of such good by the manufacturer 

19 within the country of origin. 

20 ‘‘(ii) AGGREGATION RULE.—For pur21 poses of this subparagraph, the average 

22 carbon intensity with respect to the pro23 duction of a covered primary good shall be 

24 determined based upon greenhouse gas 

25 emission and production data from all faVerDate Sep 11 2014 16:51 Jun 09, 2022 Jkt 029200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S4355.IS S4355

pamtmann on DSKBC07HB2PROD with BILLS
10 

•S 4355 IS

1 cilities which produce such good which are 

2 under common control of the manufacturer 

3 of such good, including any subsidiary, 

4 parent company, or joint venture of such 

5 manufacturer within the country of origin. 

6 ‘‘(iii) INPUTS.—With respect to any 

7 covered primary good which is imported 

8 into the United States and for which other 

9 covered primary goods (other than petro10 leum, natural gas, or coal) were used as in11 puts by the manufacturer in the produc12 tion of the imported covered primary good, 

13 any greenhouse gas emissions associated 

14 with the production of the covered primary 

15 goods used as inputs shall be included in 

16 the determination of the greenhouse gas 

17 emissions associated with production of the 

18 imported covered primary good. 

19 ‘‘(iv) DATA PROVISION.—In the case 

20 of an entity which files a petition described 

21 in clause (i), such entity shall provide the 

22 Secretary with an environmental product 

23 declaration containing any information 

24 which would otherwise be required to be 

25 reported under subsection (a) if the faciliVerDate Sep 11 2014 16:51 Jun 09, 2022 Jkt 029200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S4355.IS S4355

pamtmann on DSKBC07HB2PROD with BILLS
11 

•S 4355 IS

1 ties which produced the covered primary 

2 good to which the petition applies were 

3 subject to the reporting requirements 

4 under the Greenhouse Gas Reporting Pro5 gram. 

6 ‘‘(C) CARBON INTENSITY OF THE GEN7 ERAL ECONOMY.—For purposes of this para8 graph, with respect to any country, the carbon 

9 intensity of the general economy of such coun10 try shall be an amount equal to the quotient 

11 of— 

12 ‘‘(i) the gross domestic product of 

13 such country for the year described in 

14 clause (ii), divided by 

15 ‘‘(ii) the production-based greenhouse 

16 gas emissions of such country for the most 

17 recent year for which the Secretary deter18 mines there is reliable information. 

19 ‘‘(D) EXCLUSION.—In the case of any cov20 ered primary good which is imported into the 

21 United States and was produced in a relatively 

22 least developed country (as described in section 

23 124 of the Foreign Assistance Act of 1961 (22 

24 U.S.C. 2151v)), this paragraph shall not apply. 


pamtmann on DSKBC07HB2PROD with BILLS
12 

•S 4355 IS

1 ‘‘(E) INTER-FIRM RESOURCE SHUF2 FLING.—For purposes of this paragraph, the 

3 term ‘inter-firm resource shuffling’ means any 

4 buying, selling, trading, exchanging, or other 

5 transfer of control of production facilities be6 tween entities based on the carbon intensity of 

7 such facilities for the purpose of creating enti8 ties with relatively lower carbon intensity and 

9 entities with relatively higher carbon intensity. 

10 ‘‘(c) PUBLICATION.—The Secretary (in coordination 

11 with the relevant parties) shall annually publish any car12 bon intensity which has been determined under subsection 

13 (b) with respect to any eligible facility, covered national 

14 industry, covered primary good, foreign manufacturer, or 

15 country of origin. 

16 ‘‘(d) RELEVANT PARTIES.—For purposes of this sec17 tion, the term ‘relevant parties’ means— 

18 ‘‘(1) the Administrator, 

19 ‘‘(2) the Secretary of Energy, 

20 ‘‘(3) the Secretary of Commerce, 

21 ‘‘(4) the United States Trade Representative, 

22 and 

23 ‘‘(5) the Chair and Vice Chair of the United 

24 States International Trade Commission. 


pamtmann on DSKBC07HB2PROD with BILLS
13 

•S 4355 IS

1 ‘‘SEC. 4692. IMPOSITION OF CARBON INTENSITY CHARGE. 

2 ‘‘(a) IN GENERAL.— 

3 ‘‘(1) IMPORTATION OF GOODS.— 

4 ‘‘(A) IN GENERAL.— 

5 ‘‘(i) COVERED PRIMARY GOODS.—In 

6 the case of any covered primary good im7 ported into the United States during any 

8 calendar year beginning after December 

9 31, 2023, there is hereby imposed a charge 

10 in an amount equal to the product of— 

11 ‘‘(I)(aa) in the case of a good for 

12 which the carbon intensity is deter13 mined under section 4691(b)(3)(A)(i), 

14 the amount (if any) by which the 

15 amount determined under clause (iii) 

16 with respect to such good exceeds an 

17 amount equal to the applicable per18 centage of the carbon intensity (as de19 termined under section 

20 4691(b)(1)(B)) for the covered na21 tional industry which includes such 

22 good, or 

23 ‘‘(bb) in the case of a good for 

24 which the carbon intensity is deter25 mined under subparagraph (A)(ii) or 

26 (B) of section 4691(b)(3), the amount 


pamtmann on DSKBC07HB2PROD with BILLS
14 

•S 4355 IS

1 (if any) by which the carbon intensity 

2 determined under such subparagraph 

3 with respect to such good exceeds an 

4 amount equal to the applicable per5 centage of the carbon intensity (as de6 termined under section 

7 4691(b)(1)(B)) for the covered na8 tional industry which includes such 

9 good, multiplied by 

10 ‘‘(II) the total weight (expressed 

11 in tons) of the good imported into the 

12 United States, multiplied by 

13 ‘‘(III) the carbon price. 

14 ‘‘(ii) FINISHED GOODS.— 

15 ‘‘(I) IN GENERAL.—In the case 

16 of any imported finished good which 

17 is imported into the United States 

18 during any calendar year beginning 

19 after December 31, 2025, there is 

20 hereby imposed a charge in an 

21 amount equal to the sum of the 

22 amounts determined under subclause 

23 (II) with respect to each covered pri24 mary good which is a component part 

25 of such imported finished good. 


pamtmann on DSKBC07HB2PROD with BILLS
15 

•S 4355 IS

1 ‘‘(II) COMPONENTS.—The 

2 amount determined under this sub3 clause with respect to any covered pri4 mary good which is a component part 

5 of an imported finished good is an 

6 amount equal to the product of— 

7 ‘‘(aa) the amount (if any) 

8 determined under clause (i)(I) if 

9 such clause were applied with re10 spect to such good, multiplied by 

11 ‘‘(bb) the total weight (ex12 pressed in tons) of the covered 

13 primary good, multiplied by 

14 ‘‘(cc) the carbon price. 

15 ‘‘(iii) CALCULATION FOR CERTAIN

16 FOREIGN GOODS.—For purposes of clause 

17 (i)(I)(aa), the amount determined under 

18 this clause with respect to any covered pri19 mary good shall be equal to the product 

20 of— 

21 ‘‘(I) an amount equal to the 

22 quotient of— 

23 ‘‘(aa) the carbon intensity of 

24 the general economy (as deter25 mined under section 


pamtmann on DSKBC07HB2PROD with BILLS
16 

•S 4355 IS

1 4691(b)(3)(C)) of the country of 

2 origin of such good, divided by 

3 ‘‘(bb) the carbon intensity of 

4 the general economy (as so deter5 mined) of the United States, 

6 multiplied by 

7 ‘‘(II) an amount equal to the ap8 plicable percentage of the carbon in9 tensity (as determined under section 

10 4691(b)(1)(B)) for the covered na11 tional industry which includes such 

12 good. 

13 ‘‘(B) CHARGE DUE.—The charge imposed 

14 under this paragraph with respect to any goods 

15 imported during any calendar year shall be paid 

16 by the entity which imported such goods not 

17 later than September 30 of the calendar year 

18 subsequent to such year. 

19 ‘‘(C) EXCLUSION.—In the case of any cov20 ered primary good (including any covered pri21 mary good which is a component part of an im22 ported finished good) which is imported into the 

23 United States and was produced in a relatively 

24 least developed country (as described in section 


pamtmann on DSKBC07HB2PROD with BILLS
17 

•S 4355 IS

1 124 of the Foreign Assistance Act of 1961 (22 

2 U.S.C. 2151v)), this paragraph shall not apply. 

3 ‘‘(2) DOMESTIC PRODUCTION OF COVERED PRI4 MARY GOODS.— 

5 ‘‘(A) IN GENERAL.—In the case of any eli6 gible facility, for each calendar year beginning 

7 after December 31, 2023, there is hereby im8 posed a charge in an amount equal to the prod9 uct of— 

10 ‘‘(i) the amount (if any) by which the 

11 carbon intensity of such facility (as deter12 mined under subparagraph (A) of section 

13 4691(b)(1)) exceeds— 

14 ‘‘(I) an amount equal to the ap15 plicable percentage of the carbon in16 tensity for the covered national indus17 try (as determined under subpara18 graph (B) of section 4691(b)(1)) 

19 which includes any covered primary 

20 good produced by such facility, or 

21 ‘‘(II) in the case of a covered pri22 mary good produced by such facility 

23 which is subject to an approved peti24 tion under subparagraph (C) of such 

25 section, an amount equal to the appliVerDate Sep 11 2014 16:51 Jun 09, 2022 Jkt 029200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\S4355.IS S4355

pamtmann on DSKBC07HB2PROD with BILLS
18 

•S 4355 IS

1 cable percentage of the carbon inten2 sity determined with respect to such 

3 good, multiplied by 

4 ‘‘(ii) the total weight (expressed in 

5 tons) of any covered primary goods pro6 duced by such facility during such calendar 

7 year, multiplied by 

8 ‘‘(iii) the carbon price. 

9 ‘‘(B) CHARGE DUE.—The charge imposed 

10 under this paragraph with respect to any cal11 endar year shall be paid by the covered entity 

12 not later than September 30 of the calendar 

13 year subsequent to such year. 

14 ‘‘(b) APPLICABLE PERCENTAGE.—For purposes of 

15 paragraphs (1)(A) and (2)(A) of subsection (a), the appli16 cable percentage shall be— 

17 ‘‘(1) for calendar year 2024, 100 percent, 

18 ‘‘(2) for calendar years 2025 through 2028, the 

19 applicable percentage for the preceding calendar 

20 year, reduced by 2.5 percentage points, and 

21 ‘‘(3) for any calendar year subsequent to cal22 endar year 2028, the applicable percentage for the 

23 preceding calendar year, reduced by 5 percentage 

24 points (but not less than zero). 

25 ‘‘(c) CARBON PRICE.— 


pamtmann on DSKBC07HB2PROD with BILLS
19 

•S 4355 IS

1 ‘‘(1) IN GENERAL.—For purposes of para2 graphs (1)(A) and (2)(A) of subsection (a), the car3 bon price shall be— 

4 ‘‘(A) for 2024, $55, and 

5 ‘‘(B) for each calendar year subsequent to 

6 the calendar year described in subparagraph 

7 (A), an amount equal to the sum of— 

8 ‘‘(i) the carbon price for the preceding 

9 year, plus 

10 ‘‘(ii) an amount equal to— 

11 ‘‘(I) the amount described in 

12 clause (i), multiplied by 

13 ‘‘(II) the percentage by which the 

14 CPI for the preceding calendar year 

15 exceeds the CPI for the second pre16 ceding calendar year, increased by 5 

17 percentage points. 

18 ‘‘(2) CPI.—Rules similar to the rules of para19 graphs (4) and (5) of section 1(f) shall apply for 

20 purposes of this subsection. 

21 ‘‘(3) ROUNDING.—Any applicable amount de22 termined under subsection (a) which is not a mul23 tiple of $1 shall be rounded to the nearest dollar. 

24 ‘‘SEC. 4693. REBATE. 

25 ‘‘(a) EXPORTS.— 


pamtmann on DSKBC07HB2PROD with BILLS
20 

•S 4355 IS

1 ‘‘(1) IN GENERAL.—In the case of a person who 

2 exports any covered primary good from the United 

3 States which was produced in an eligible facility for 

4 which a charge has been imposed under section 

5 4692, a refund shall be allowed to such person in 

6 the same manner as if it were an overpayment of the 

7 charge imposed by such section in an amount equal 

8 to the amount determined under paragraph (2). 

9 ‘‘(2) RECALCULATION.—In the case of a cov10 ered primary good described in paragraph (1), the 

11 amount determined under this paragraph is an 

12 amount equal to the charge that would be imposed 

13 under section 4692 with respect to such good if sub14 section (a)(1)(A) of such section were applied by 

15 substituting ‘the carbon intensity of all eligible facili16 ties (as determined under subparagraph (A) of sec17 tion 4691(b)(1)) operated by the covered entity 

18 which produced the covered primary good described 

19 in section 4693(a)(1)’ for ‘the carbon intensity of 

20 such facility (as determined under subparagraph (A) 

21 of section 4691(b)(1))’. 

22 ‘‘SEC. 4694. DEFINITIONS. 

23 ‘‘For purposes of this subchapter— 


pamtmann on DSKBC07HB2PROD with BILLS
21 

•S 4355 IS

1 ‘‘(1) ADMINISTRATOR.—The term ‘Adminis2 trator’ means the Administrator of the Environ3 mental Protection Agency. 

4 ‘‘(2) C02-e.— 

5 ‘‘(A) IN GENERAL.—Subject to subpara6 graph (B), the term ‘CO2-e’ means, with re7 spect to a greenhouse gas, the quantity of such 

8 gas that has a global warming potential equiva9 lent to 1 metric ton of carbon dioxide, as deter10 mined pursuant to table A–1 of subpart A of 

11 part 98 of title 40, Code of Federal Regula12 tions, as in effect on the date of the enactment 

13 of this subchapter. 

14 ‘‘(B) METHANE.—In the case of methane, 

15 the term ‘CO2-e’ means the quantity of meth16 ane that has the same global warming potential 

17 over a 20-year period as 1 metric ton of carbon 

18 dioxide, as determined by the Administrator. 

19 ‘‘(3) COVERED ENTITY.—The term ‘covered en20 tity’ means any entity which— 

21 ‘‘(A) produces any covered primary good, 

22 and 

23 ‘‘(B) is required to report emissions of 

24 greenhouse gases under the Greenhouse Gas 

25 Reporting Program (or would be required to reVerDate Sep 11 2014 16:51 Jun 09, 2022 Jkt 029200 PO 00000 Frm 00021 Fmt 6652 Sfmt 6201 E:\BILLS\S4355.IS S4355

pamtmann on DSKBC07HB2PROD with BILLS
22 

•S 4355 IS

1 port such emissions notwithstanding any other 

2 provision of law prohibiting the implementation 

3 of or use of funds for such requirements). 

4 ‘‘(4) COVERED NATIONAL INDUSTRY.— 

5 ‘‘(A) IN GENERAL.—The term ‘covered na6 tional industry’ means any industry which is as7 signed a 6-digit NAICS code which is included 

8 in any of the following clauses: 

9 ‘‘(i) 211120 (petroleum extraction). 

10 ‘‘(ii) 211130 (natural gas extraction). 

11 ‘‘(iii) 212112 (underground coal min12 ing). 

13 ‘‘(iv) 322110 (pulp mills). 

14 ‘‘(v) 322121 (paper mills). 

15 ‘‘(vi) 322122 (newsprint mills). 

16 ‘‘(vii) 322130 (paperboard mills). 

17 ‘‘(viii) 324110 (petroleum refineries). 

18 ‘‘(ix) 324121 (asphalt paving mixture 

19 and block manufacturing). 

20 ‘‘(x) 324122 (asphalt shingle and 

21 coating materials manufacturing). 

22 ‘‘(xi) 324199 (all other petroleum and 

23 coal products manufacturing). 

24 ‘‘(xii) 325110 (petrochemical manu25 facturing). 


pamtmann on DSKBC07HB2PROD with BILLS
23 

•S 4355 IS

1 ‘‘(xiii) 325120 (industrial gas manu2 facturing). 

3 ‘‘(xiv) 325193 (ethyl alcohol manufac4 turing). 

5 ‘‘(xv) 325199 (other basic organic 

6 chemical manufacturing). 

7 ‘‘(xvi) 325311 (nitrogenous fertilizer 

8 manufacturing). 

9 ‘‘(xvii) 327211, 327212, 327213, or 

10 327215 (glass). 

11 ‘‘(xviii) 327310 (cement). 

12 ‘‘(xix) 327410 or 327420 (lime and 

13 gypsum product manufacturing). 

14 ‘‘(xx) 331110 (iron and steel). 

15 ‘‘(xxi) 331313 (aluminum). 

16 ‘‘(B) EXCEPTIONS.— 

17 ‘‘(i) INDUSTRIAL GAS MANUFAC18 TURING.—Subparagraph (A)(xiii) shall 

19 apply only with respect to the production 

20 of hydrogen. 

21 ‘‘(ii) OTHER BASIC ORGANIC CHEM22 ICAL MANUFACTURING.—Subparagraph 

23 (A)(xv) shall apply only with respect to the 

24 production of adipic acid. 


pamtmann on DSKBC07HB2PROD with BILLS
24 

•S 4355 IS

1 ‘‘(5) COVERED PRIMARY GOOD.—The term ‘cov2 ered primary good’ means any good which is pro3 duced as part of a trade or business operating with4 in a covered national industry. 

5 ‘‘(6) ELIGIBLE FACILITY.—The term ‘eligible 

6 facility’ means any facility (as such term is defined 

7 for purposes of the Greenhouse Gas Reporting Pro8 gram) which is— 

9 ‘‘(A) operated by a covered entity for the 

10 production of any covered primary good, and 

11 ‘‘(B) located within the United States. 

12 ‘‘(7) GREENHOUSE GAS.—The term ‘greenhouse 

13 gas’ has the meaning given such term under section 

14 211(o)(1)(G) of the Clean Air Act, as in effect on 

15 the date of the enactment of this subchapter. 

16 ‘‘(8) GREENHOUSE GAS EMISSIONS.—The term 

17 ‘greenhouse gas emissions’ means the amount of 

18 greenhouse gases, expressed in metric tons of CO2- 

19 e, which were emitted to the atmosphere. 

20 ‘‘(9) GREENHOUSE GAS REPORTING PRO21 GRAM.—The term ‘Greenhouse Gas Reporting Pro22 gram’ means the Greenhouse Gas Reporting Pro23 gram established under part 98 of title 40, Code of 

24 Federal Regulations. 

25 ‘‘(10) IMPORTED FINISHED GOOD.— 


pamtmann on DSKBC07HB2PROD with BILLS
25 

•S 4355 IS

1 ‘‘(A) IN GENERAL.—The term ‘imported 

2 finished good’ means any good which— 

3 ‘‘(i) is imported into the United 

4 States, and 

5 ‘‘(ii)(I) for calendar year 2026 and 

6 2027, contains greater than 500 pounds of 

7 any combination of any covered primary 

8 goods, and 

9 ‘‘(II) for any calendar year after cal10 endar year 2027, contains greater than 

11 100 pounds of any combination of any cov12 ered primary goods. 

13 ‘‘(11) NAICS.—The term ‘NAICS’ means the 

14 North American Industrial Classification System.’’. 

15 (b) CLERICAL AMENDMENT.—The table of sub16 chapters for chapter 38 of the Internal Revenue Code of 

17 1986 is amended by adding at the end thereof the fol18 lowing new item: 

‘‘SUBCHAPTER E—CARBON INTENSITY CHARGE’’. 

19 (c) GRANT PROGRAM.— 

20 (1) IN GENERAL.—For fiscal year 2025 and 

21 each subsequent fiscal year, there are appropriated, 

22 out of any funds in the Treasury not otherwise ap23 propriated, to the Department of the Treasury 

24 amounts equal to applicable amount for the pre25 ceding fiscal year, with such amounts to be used by 


pamtmann on DSKBC07HB2PROD with BILLS
26 

•S 4355 IS

1 the Secretary, in conjunction with the Secretary of 

2 Energy and the Administrator of the Environmental 

3 Protection Agency, to establish a competitive grant 

4 program to award grants to eligible entities for in5 vestments in new technology— 

6 (A) in the case of an existing eligible facil7 ity, to reduce their carbon intensity, and 

8 (B) in the case of a proposed eligible facil9 ity, to ensure best-in-class carbon intensity. 

10 (2) MODELED ON DIESEL EMISSIONS REDUC11 TION ACT.—For purposes of the program described 

12 in paragraph (1), such program shall be adminis13 tered in a manner similar to the national grant pro14 gram of the Environmental Protection Agency under 

15 subtitle G of title VII of the Energy Policy Act of 

16 2005 (42 U.S.C. 16131 et seq.). 

17 (3) AWARDING OF GRANT AMOUNTS.—For pur18 poses of awarding grants under the program de19 scribed in paragraph (1), the Secretary (in conjunc20 tion with the Administrator and the Secretary of 

21 Energy) shall— 

22 (A) give preference to proposed invest23 ments— 

24 (i) that would result in the greatest 

25 decrease in carbon intensity, 


pamtmann on DSKBC07HB2PROD with BILLS
27 

•S 4355 IS

1 (ii) for facilities located in economi2 cally distressed communities that have ex3 perienced a loss of manufacturing jobs, 

4 (iii) that would maximize improve5 ment in local air quality, or 

6 (iv) for facilities located in commu7 nities with high cumulative pollution bur8 dens (as determined by the Administrator), 

9 and 

10 (B) allocate grant funds to eligible facili11 ties and proposed eligible facilities which 

12 produce covered primary goods that are in13 cluded within a covered national industry in ap14 proximate proportion to the share of total 

15 greenhouse gas emissions for which such indus16 try is responsible for emitting. 

17 (4) RECAPTURE.—In the case of any eligible 

18 entity which has been awarded a grant under the 

19 program described in paragraph (1) with respect to 

20 any eligible facility or proposed eligible facility, if 

21 such entity fails to— 

22 (A) within 3 years of the awarding of such 

23 grant, complete the proposed investments in 

24 new technology at such facility, or 


pamtmann on DSKBC07HB2PROD with BILLS
28 

•S 4355 IS

1 (B) during the 10-year period after such 

2 investments are placed in service— 

3 (i) in the case of an existing eligible 

4 facility, achieve and maintain the reduction 

5 in carbon intensity proposed in the applica6 tion for such grant, or 

7 (ii) in the case of a proposed eligible 

8 facility, achieve and maintain the best-in9 class carbon intensity proposed in the ap10 plication for such grant, 

11 the Secretary shall recapture, pursuant to such reg12 ulations or other guidance issued by the Secretary, 

13 the amount of the grant awarded with respect to 

14 such facility. 

15 (5) APPLICABLE AMOUNT.—For purposes of 

16 this subsection, the term ‘‘applicable amount’’ 

17 means, with respect to any fiscal year, an amount 

18 equal to 75 percent of the increase in revenues to 

19 the Treasury during such fiscal year by reason of 

20 the application of subchapter E of chapter 38 of the 

21 Internal Revenue Code of 1986 (as added by sub22 section (a)). 

23 (6) DEFINITIONS.—For purposes of this sub24 section— 


pamtmann on DSKBC07HB2PROD with BILLS
29 

•S 4355 IS

1 (A) IN GENERAL.—The terms ‘‘covered na2 tional industry’’, ‘‘eligible facility’’, and ‘‘cov3 ered primary good’’ shall have the same mean4 ing given such terms under section 4694 of the 

5 Internal Revenue Code of 1986 (as added by 

6 subsection (a)). 

7 (B) BEST-IN-CLASS CARBON INTENSITY.— 

8 The term ‘‘best-in-class carbon intensity’’ 

9 means, with respect to any proposed eligible fa10 cility, that the carbon intensity of such facility 

11 would be not greater than the carbon intensity 

12 of the existing facility with the lowest carbon 

13 intensity within the relevant covered national 

14 industry (as determined of the date of the ap15 plication for a grant under the program de16 scribed in paragraph (1)). 

17 (C) ELIGIBLE ENTITY.—The term ‘‘eligible 

18 entity’’ means any person which operates an eli19 gible facility or will operate a proposed eligible 

20 facility. 

21 (D) SECRETARY.—The term ‘‘Secretary’’ 

22 means the Secretary of the Treasury (or the 

23 Secretary’s delegate). 

24 (d) ECONOMIC SUPPORT FUND OF DEPARTMENT OF

25 STATE.— 


pamtmann on DSKBC07HB2PROD with BILLS
30 

•S 4355 IS

1 (1) IN GENERAL.—For fiscal year 2025 and 

2 each subsequent fiscal year, in addition to amounts 

3 otherwise available, there are appropriated, out of 

4 any funds in the Treasury not otherwise appro5 priated, to the Department of State an amount 

6 equal to applicable amount for the preceding fiscal 

7 year, with such amount to be made available for 

8 multilateral assistance to support climate and clean 

9 energy programs. 

10 (2) APPLICABLE AMOUNT.—For purposes of 

11 this subsection, the term ‘‘applicable amount’’ 

12 means, with respect to any fiscal year, an amount 

13 equal to 25 percent of the increase in revenues to 

14 the Treasury during such fiscal year by reason of 

15 the application of subchapter E of chapter 38 of the 

16 Internal Revenue Code of 1986 (as added by sub17 section (a)). 

Æ 


pamtmann on DSKBC07HB2PROD with BILLS