II 

113TH CONGRESS 

2D SESSION S. 2940 

To provide for carbon dioxide and other greenhouse gas emission fees. 

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 19, 2014 

Mr. WHITEHOUSE (for himself and Mr. SCHATZ) introduced the following bill; 

which was read twice and referred to the Committee on Finance 

A BILL 

To provide for carbon dioxide and other greenhouse gas 

emission fees. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘American Opportunity 

5 Carbon Fee Act’’. 

6 SEC. 2. CARBON DIOXIDE AND OTHER GREENHOUSE GAS 

7 EMISSION FEES. 

8 (a) IN GENERAL.—Chapter 38 of the Internal Rev9 enue Code of 1986 is amended by adding at the end there10 of the following new subchapter: 

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1 ‘‘Subchapter E—Carbon Dioxide and Other 

2 Greenhouse Gas Emission Fees 

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

‘‘Sec. 4692. Fee for non-carbon dioxide greenhouse gas emissions. 

‘‘Sec. 4693. Escaped methane. 

‘‘Sec. 4694. Border adjustments. 

‘‘Sec. 4695. Definitions and other rules. 

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

4 ‘‘(a) IN GENERAL.— 

5 ‘‘(1) FOSSIL FUEL PRODUCTS PRODUCING CAR6 BON EMISSIONS.— 

7 ‘‘(A) IN GENERAL.—There is hereby im8 posed a fee in an amount equal to the applica9 ble amount at the rate specified in subpara10 graph (B) on— 

11 ‘‘(i) coal— 

12 ‘‘(I) removed from any mine in 

13 the United States, or 

14 ‘‘(II) entered into the United 

15 States for consumption, use, or 

16 warehousing, 

17 ‘‘(ii) petroleum products— 

18 ‘‘(I) removed from any refinery, 

19 ‘‘(II) removed from any terminal, 

20 or 

21 ‘‘(III) entered into the United 

22 States for consumption, use, or 

23 warehousing, and 

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1 ‘‘(iii) natural gas— 

2 ‘‘(I) entered into any processor, 

3 or 

4 ‘‘(II) entered into the United 

5 States for consumption, use, or 

6 warehousing. 

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

8 subparagraph with respect to any product de9 scribed in subparagraph (A) is an amount equal 

10 to the applicable amount per ton of carbon di11 oxide that would be emitted through the com12 bustion of such product (as determined by the 

13 Secretary, in consultation with the Secretary of 

14 Energy and the Administrator of the Environ15 mental Protection Agency). 

16 ‘‘(2) EMISSIONS ATTRIBUTABLE TO OTHER

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

18 amount equal to the applicable amount per ton of 

19 carbon dioxide emitted— 

20 ‘‘(A) from any facility which— 

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

22 to which emissions are attributed, under 

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

24 Federal Regulations, as in effect on the 

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1 date of the enactment of the American Op2 portunity Carbon Fee Act, and 

3 ‘‘(ii) emits not less than 25,000 tons 

4 of carbon dioxide emissions during the pre5 vious calendar year, and 

6 ‘‘(B) by reason of the combustion or proc7 essing of any product other than coal, petro8 leum products, and natural gas. 

9 ‘‘(b) APPLICABLE AMOUNT.— 

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

11 the applicable amount is— 

12 ‘‘(A) for calendar year 2015, $42, 

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

14 which is not a national emissions target attain15 ment year, the sum of— 

16 ‘‘(i) the product of the amount in ef17 fect under this subparagraph for the pre18 ceding calendar year and 102 percent, and 

19 ‘‘(ii) the inflation adjustment amount 

20 determined under paragraph (2), and 

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

22 which is a national emissions target attainment 

23 year, the sum of— 

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

2 subparagraph for the preceding calendar 

3 year, and 

4 ‘‘(ii) the inflation adjustment amount 

5 determined under paragraph (2). 

6 ‘‘(2) INFLATION ADJUSTMENT AMOUNT.— 

7 ‘‘(A) IN GENERAL.—The inflation adjust8 ment amount for any calendar year shall be an 

9 amount (not less than zero) equal to the prod10 uct of— 

11 ‘‘(i) the amount determined under 

12 paragraph (1)(B)(i) or (1)(C)(i), as appli13 cable, for such year, and 

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

15 for the preceding calendar year exceeds the 

16 CPI for the second preceding calendar 

17 year. 

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

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

20 apply for purposes of this paragraph. 

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

22 this subsection shall be rounded up to the next whole 

23 dollar amount. 

24 ‘‘(4) NATIONAL EMISSIONS TARGET ATTAIN25 MENT YEAR.—For purposes of paragraph (1), a calmstockstill on DSK4VPTVN1PROD with BILLS

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1 endar year is a national emissions target attainment 

2 year if the level of greenhouse gas emissions in the 

3 United States for the calendar year does not exceed 

4 20 percent of the level of greenhouse gas emissions 

5 in the United States for calendar year 2005 as de6 termined by the Secretary in consultation with the 

7 Administrator of the Environmental Protection 

8 Agency. 

9 ‘‘(c) REFUNDS FOR CAPTURING CARBON DIOXIDE

10 AND PRODUCTION OF CERTAIN GOODS.— 

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

12 AND STORAGE.— 

13 ‘‘(A) IN GENERAL.—In the case of a per14 son who— 

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

16 or natural gas for which a fee has been im17 posed under subsection (a)(1) in a manner 

18 which results in the emission of qualified 

19 carbon dioxide, 

20 ‘‘(ii) captures the resulting emitted 

21 qualified carbon dioxide at a qualified facil22 ity, and 

23 ‘‘(iii)(I) disposes of such qualified car24 bon dioxide in secure storage, or 

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1 ‘‘(II) utilizes such qualified carbon di2 oxide in a manner provided in subpara3 graph (D), 

4 there shall be allowed a refund, in the same 

5 manner as if it were an overpayment of the fee 

6 imposed by such subsection, to such person in 

7 amount determined under subparagraph (B). 

8 ‘‘(B) AMOUNT OF REFUND.—The amount 

9 of the refund under this subparagraph is an 

10 amount equal to the product of— 

11 ‘‘(i) the applicable amount under sub12 section (b) for the calendar year in which 

13 such qualified carbon dioxide was captured 

14 and disposed or utilized, and 

15 ‘‘(ii) the adjusted tons of qualified 

16 carbon dioxide captured and disposed or 

17 utilized. 

18 ‘‘(C) ADJUSTED TOTAL TONS.—For pur19 poses of subparagraph (B), the adjusted tons of 

20 qualified carbon dioxide captured and disposed 

21 or utilized shall be the total tons of qualified 

22 carbon dioxide captured and disposed or utilized 

23 reduced by the amount of any anticipated leak24 age of carbon dioxide into the atmosphere due 

25 to imperfect storage technology or otherwise, as 

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1 determined by the Secretary in consultation 

2 with the Administrator of the Environmental 

3 Protection Agency. 

4 ‘‘(D) REQUIREMENTS.— 

5 ‘‘(i) IN GENERAL.—Any refund under 

6 subparagraph (A) shall apply only with re7 spect to qualified carbon dioxide that has 

8 been captured and disposed or utilized 

9 within the United States. 

10 ‘‘(ii) DISPOSAL AND SECURE STOR11 AGE.— 

12 ‘‘(I) SECURE STORAGE.—The 

13 Secretary, in consultation with the 

14 Administrator of the Environmental 

15 Protection Agency and the Secretary 

16 of Energy, shall establish regulations 

17 similar to the regulations under sec18 tion 45Q(d)(2) for determining ade19 quate security measures for the secure 

20 storage of qualified carbon dioxide for 

21 purposes of subparagraph (A)(iii)(I). 

22 ‘‘(II) RECAPTURE.—The Sec23 retary shall, by regulations, provide 

24 for recapturing the benefit of any re25 fund made under subparagraph (A) 

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1 with respect to any qualified carbon 

2 dioxide which is disposed in secure 

3 storage and ceases to be stored in a 

4 manner consistent with the require5 ments of this section. 

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

7 in consultation with the Administrator of 

8 the Environmental Protection Agency, 

9 shall establish regulations providing for the 

10 appropriate methods and manners for the 

11 utilization of qualified carbon dioxide 

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

13 the utilization of captured carbon dioxide 

14 for enhanced oil or gas recovery and the 

15 production of substances such as plastics, 

16 biofuels, and chemicals. Such regulations 

17 shall provide for the minimization of the 

18 escape or further emission of the qualified 

19 carbon dioxide into the atmosphere. 

20 ‘‘(E) QUALIFIED CARBON DIOXIDE; QUALI21 FIED FACILITY.—For purposes of this para22 graph— 

23 ‘‘(i) QUALIFIED CARBON DIOXIDE.— 

24 The term ‘qualified carbon dioxide’ has the 

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1 same meaning given that term under sec2 tion 45Q(b). 

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

4 ‘qualified facility’ has the same meaning 

5 given that term under section 45Q(c), de6 termined without regard to paragraph (3) 

7 thereof. 

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

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

10 product, or natural gas for which a fee has been im11 posed under subsection (a)(1) as an input for a 

12 manufactured good that encapsulates carbon dioxide 

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

14 emission of carbon dioxide in the manufacturing or 

15 subsequent use of such good, a refund shall be al16 lowed to such person in the same manner as if it 

17 were an overpayment of the fee imposed by such sec18 tion in an amount that is equal to the product of— 

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

20 amount under subsection (b) for the calendar 

21 year in which such product was used, and 

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

23 would have otherwise been emitted through the 

24 combustion of such product. 

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

2 exports any coal, petroleum product, or natural gas 

3 from the United States for which a fee has been im4 posed under subsection (a)(1), a refund shall be al5 lowed to such person in the same manner as if it 

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

8 imposed under such section with respect to such 

9 product. 

10 ‘‘SEC. 4692. FEE FOR NON-CARBON DIOXIDE GREENHOUSE 

11 GAS EMISSIONS. 

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

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

14 emission (including attributed emissions) of any green15 house gas other than carbon dioxide from any greenhouse 

16 gas emissions source. 

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

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

19 determined under section 4691(b) per ton of carbon diox20 ide equivalent emitted by the greenhouse gas emissions 

21 source. 

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

23 term ‘greenhouse gas emissions source’ means any facility 

24 which— 

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

2 would be required to report emissions notwith3 standing any other provision of law prohibiting the 

4 implementation of or use of funds for such require5 ments), or to which emissions are attributed, under 

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

7 in effect on the date of the enactment of the Amer8 ican Opportunity Carbon Fee Act, and 

9 ‘‘(2) emits during the previous calendar year 

10 greenhouse gases (not including carbon dioxide) at a 

11 rate equal to the carbon dioxide equivalent of not 

12 less than 25,000 tons. 

13 ‘‘(d) SPECIAL RULES.—For purposes of determining 

14 emissions under subsections (a) and (c)(2), there shall not 

15 be taken into account— 

16 ‘‘(1) the emission of fluorinated greenhouse 

17 gases other than nitrogen trifluoride from any facil18 ity that is included under— 

19 ‘‘(A) the electrical transmission and dis20 tribution equipment use source category under 

21 subpart DD of part 98 of title 40, Code of Fed22 eral Regulations, as in effect on the date of the 

23 enactment of the American Opportunity Carbon 

24 Fee Act, 

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1 ‘‘(B) the electronics manufacturing source 

2 category under subpart I of such part, as in ef3 fect on the date of the enactment of the Amer4 ican Opportunity Carbon Fee Act, 

5 ‘‘(C) in the case of a facility that trans6 forms or destroys such gases, the industrial gas 

7 supplier source category under subpart OO of 

8 such part, as in effect on the date of the enact9 ment of the American Opportunity Carbon Fee 

10 Act, or 

11 ‘‘(D) the electrical equipment manufac12 turing or refurbishment category under subpart 

13 SS of such part, as in effect on the date of the 

14 enactment of the American Opportunity Carbon 

15 Fee Act, or 

16 ‘‘(2) the emission of trifluoride from any facility 

17 that is included under— 

18 ‘‘(A) the industrial gas supplier source cat19 egory under subpart OO of part 98 of title 40, 

20 Code of Federal Regulations, as in effect on the 

21 date of the enactment of the American Oppor22 tunity Carbon Fee Act, or 

23 ‘‘(B) the source category for importers and 

24 exporters of fluorinated greenhouse gases con25 tained in pre-charged equipment or closed-cell 

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1 foams under subpart QQ of such part, as in ef2 fect on the date of the enactment of the Amer3 ican Opportunity Carbon Fee Act. 

4 ‘‘SEC. 4693. ESCAPED METHANE. 

5 ‘‘(a) REPORTING PROGRAM.— 

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

7 2016, the Secretary of the Treasury, in consultation 

8 with the Administrator of the Environmental Protec9 tion Agency and the Administrator of the Energy 

10 Information Administration, shall establish and im11 plement a program to provide for the collection of 

12 data on methane emissions by major non-natural 

13 sources, including methane emissions attributable to 

14 the extraction and distribution of coal, petroleum 

15 products, and natural gas. 

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

17 months after the date that the Secretary implements 

18 the program described in paragraph (1), and annu19 ally thereafter, the Secretary shall issue a report, to 

20 be made available to the public and the appropriate 

21 Committees of Congress, on methane emissions, in22 cluding— 

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

24 source categories of methane emissions, 

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

2 carbon dioxide equivalent, of— 

3 ‘‘(i) methane emissions attributable to 

4 the extraction and distribution of coal 

5 within the United States during the pre6 ceding calendar year, 

7 ‘‘(ii) methane emissions attributable 

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

10 during the preceding calendar year, and 

11 ‘‘(iii) methane emissions attributable 

12 to the extraction and distribution of nat13 ural gas within the United States during 

14 the preceding calendar year, and 

15 ‘‘(C) the total amount, expressed in tons of 

16 carbon dioxide equivalent, of— 

17 ‘‘(i) greenhouse gas emissions attrib18 utable to the extraction, distribution, and 

19 combustion of coal within the United 

20 States during the preceding calendar year, 

21 ‘‘(ii) greenhouse gas emissions attrib22 utable to the extraction, distribution, and 

23 combustion of petroleum products within 

24 the United States during the preceding cal25 endar year, and 

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1 ‘‘(iii) greenhouse gas emissions attrib2 utable to the extraction, distribution, and 

3 combustion of natural gas within the 

4 United States during the preceding cal5 endar year. 

6 ‘‘(b) SUPPLEMENTARY FEE FOR ESCAPED METH7 ANE.— 

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

9 beginning after 2016, the fee imposed under section 

10 4691(a)(1) with respect to coal shall be increased by 

11 the amount determined by the Secretary (in con12 sultation with the Administrator of the Environ13 mental Protection Agency) necessary to ensure that 

14 the total fees collected under such section with re15 spect to coal are equal to the total amount of such 

16 fees that would be collected on coal if the fee im17 posed under section 4691(a)(1) applied to the car18 bon-dioxide equivalent of methane emissions re19 ported under subsection (a)(2)(B)(i). 

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

21 any calendar year beginning after 2016, the fee im22 posed under section 4691(a)(1) with respect to pe23 troleum products shall be increased by the amount 

24 determined by the Secretary (in consultation with 

25 the Administrator of the Environmental Protection 

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1 Agency) necessary to ensure that the total fees col2 lected under such section with respect to petroleum 

3 products are equal to the total amount of such fees 

4 that would be collected on petroleum products if the 

5 fee imposed under section 4691(a)(1) applied to the 

6 carbon-dioxide equivalent of methane emissions re7 ported under subsection (a)(2)(B)(ii). 

8 ‘‘(3) NATURAL GAS.—In the case of any cal9 endar year beginning after 2016, the fee imposed 

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

11 shall be increased by the amount determined by the 

12 Secretary (in consultation with the Administrator of 

13 the Environmental Protection Agency) necessary to 

14 ensure that the total fees collected under such sec15 tion with respect to natural gas are equal to the 

16 total amount of such fees that would be collected on 

17 natural gas if the fee imposed under section 

18 4691(a)(1) applied to the carbon-dioxide equivalent 

19 of methane emissions reported under subsection 

20 (a)(2)(B)(iii). 

21 ‘‘SEC. 4694. BORDER ADJUSTMENTS. 

22 ‘‘(a) EXPORTS.— 

23 ‘‘(1) IN GENERAL.—In the case of any good ex24 ported from the United States that— 

25 ‘‘(A) is manufactured using as an input— 

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1 ‘‘(i) any coal, petroleum product, or 

2 natural gas that is subject to a fee under 

3 section 4691(a)(1) or 4693(b), or 

4 ‘‘(ii) any product manufactured in a 

5 facility that is subject to a fee under sec6 tion 4691(a)(2) or 4692(a), and 

7 ‘‘(B) as a result of such fee, has been de8 termined by the Secretary to be placed at a 

9 competitive disadvantage in foreign markets 

10 against similar goods that are manufactured 

11 using inputs not subject to equivalent green12 house gas or carbon content taxes or fees, 

13 the Secretary may provide an equivalency refund to 

14 the person exporting such good in an amount deter15 mined under paragraph (2). 

16 ‘‘(2) EQUIVALENCY REFUND.—For any good 

17 identified by the Secretary under paragraph (1), the 

18 amount determined under this paragraph shall be 

19 equal to the difference between— 

20 ‘‘(A) the amount of the cost of such good 

21 attributable to any fees imposed under this sub22 chapter on inputs used in the manufacturing of 

23 such good (as determined under regulations es24 tablished by the Secretary), and 

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1 ‘‘(B) the amount, if any, of the cost of 

2 such good which would be attributable to com3 parable greenhouse gas or carbon content taxes 

4 or fees imposed by the foreign nation or sub5 stantial governmental unit to which such good 

6 is exported if the inputs used in the manufac7 turing of such good were subject to such taxes 

8 or fees (as determined under regulations estab9 lished by the Secretary). 

10 ‘‘(b) IMPORTS.— 

11 ‘‘(1) IN GENERAL.—In the case of any good im12 ported into the United States— 

13 ‘‘(A) that is manufactured using as an 

14 input— 

15 ‘‘(i) any coal, petroleum product, or 

16 natural gas that is not subject to a fee 

17 under section 4691(a)(1) or 4693(b), or 

18 ‘‘(ii) any product manufactured in a 

19 facility that is not subject to a fee under 

20 section 4691(a)(2) or 4692(a), and 

21 ‘‘(B) is placed at a competitive disadvan22 tage compared to similar goods in the domestic 

23 market which are manufactured using inputs 

24 subject to such a fee, as determined under reg25 ulations established by the Secretary, 

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1 the Secretary may impose an equivalency fee on the 

2 person importing such good in an amount deter3 mined under paragraph (2). 

4 ‘‘(2) EQUIVALENCY FEE.—For any good identi5 fied by the Secretary under paragraph (1), the 

6 amount determined under this paragraph shall be 

7 equal to the difference between— 

8 ‘‘(A) the amount of the cost of such good 

9 which would be attributable to any fees imposed 

10 under this subchapter on inputs used in the 

11 manufacturing of such good if the inputs used 

12 in manufacturing such good were subject to 

13 such fees (as determined under regulations es14 tablished by the Secretary), and 

15 ‘‘(B) the amount, if any, of the cost of 

16 such good which is attributable to comparable 

17 greenhouse gas or carbon content taxes or fees 

18 imposed by the foreign nation or substantial 

19 governmental unit from which such good is im20 ported (as determined under regulations estab21 lished by the Secretary). 

22 ‘‘(c) REGULATORY AUTHORITY.—The Secretary shall 

23 consult with the Administrator of the Environmental Pro24 tection Agency and the Secretary of Energy in establishing 

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1 rules and regulations implementing the purposes of this 

2 section. 

3 ‘‘SEC. 4695. DEFINITIONS AND OTHER RULES. 

4 ‘‘(a) DEFINITIONS.—For purposes of this sub5 chapter: 

6 ‘‘(1) CARBON DIOXIDE EQUIVALENT.— 

7 ‘‘(A) IN GENERAL.—Except as provided 

8 under subparagraph (B), the term ‘carbon diox9 ide equivalent’ means, with respect to a green10 house gas, the quantity of such gas that has a 

11 global warming potential equivalent to 1 metric 

12 ton of carbon dioxide, as determined pursuant 

13 to table A–1 of subpart A of part 98 of title 40, 

14 Code of Federal Regulations, as in effect on the 

15 date of the enactment of the American Oppor16 tunity Carbon Fee Act. 

17 ‘‘(B) EXCEPTION FOR

18 HYDROFLUOROCARBONS.—In the case of 

19 hydrofluorocarbons emitted from any facility 

20 that is included under— 

21 ‘‘(i) the industrial gas supplier source 

22 category under subpart OO of part 98 of 

23 title 40, Code of Federal Regulations, or 

24 ‘‘(ii) the source category for importers 

25 and exporters of fluorinated greenhouse 

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1 gases contained in pre-charged equipment 

2 or closed-cell foams under subpart QQ of 

3 such part, 

4 the term ‘carbon dioxide equivalent’ means 10 

5 percent of the quantity of such 

6 hydrofluorocarbons that has a global warming 

7 potential equivalent to 1 metric ton of carbon 

8 dioxide, as determined pursuant to table A–1 of 

9 subpart A of such part, as in effect on the date 

10 of the enactment of the American Opportunity 

11 Carbon Fee Act. 

12 ‘‘(2) 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 the American Oppor16 tunity Carbon Fee Act. 

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

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

19 ‘‘(4) PETROLEUM PRODUCT.—The term ‘petro20 leum product’ has the same meaning given such 

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

22 ‘‘(5) TON.— 

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

24 1,000 kilograms. In the case of any greenhouse 

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

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1 amount of such gas in cubic meters which is the 

2 equivalent of 1,000 kilograms on a molecular 

3 weight basis. 

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

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

6 this subchapter on such fraction shall be the 

7 same fraction of the amount of such fee im8 posed on a whole ton. 

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

10 States’ has the meaning given such term by section 

11 4612(a)(4). 

12 ‘‘(b) OTHER RULES.— 

13 ‘‘(1) ASSESSMENT AND COLLECTION.—Subject 

14 to subsection (d), payment of the fee imposed by 

15 sections 4691, 4692, and 4693 shall be assessed and 

16 collected in the same manner as taxes under this 

17 subtitle. 

18 ‘‘(2) REGULATIONS.—The Secretary shall pre19 scribe such regulations as may be necessary to carry 

20 out the provisions of this subchapter.’’. 

21 (b) CLERICAL AMENDMENT.—The table of sub22 chapters for chapter 38 of the Internal Revenue Code of 

23 1986 is amended by adding at the end the following new 

24 item: 

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

FEES’’. 

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

2 this section shall apply to taxable years beginning after 

3 December 31, 2014. 

4 SEC. 3. AMERICAN OPPORTUNITY FUND. 

5 (a) ESTABLISHMENT OF FUND.—Subchapter A of 

6 chapter 98 of the Internal Revenue Code of 1986 is 

7 amended by adding at the end thereof the following new 

8 section: 

9 ‘‘SEC. 9512. AMERICAN OPPORTUNITY FUND. 

10 ‘‘(a) CREATION OF FUND.—There is established in 

11 the Treasury of the United States a trust fund to be 

12 known as the ‘American Opportunity Fund’, consisting of 

13 such amounts as may be appropriated or credited to the 

14 American Opportunity Fund as provided in this section 

15 or section 9602(b). 

16 ‘‘(b) TRANSFERS TO FUND.—There is hereby cred17 ited to the American Opportunity Fund an amount equal 

18 to the budgetary effects for the American Opportunity 

19 Carbon Fee Act determined pursuant to section 4 of the 

20 Statutory Pay-As-You-Go Act of 2010 (determined with21 out regard to section 5 of the American Opportunity Car22 bon Fee Act). 

23 ‘‘(c) EXPENDITURES FROM FUND.— 

24 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

25 amounts in the American Opportunity Fund shall be 

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1 made available for the following uses to assist Amer2 ican families and businesses: 

3 ‘‘(A) Providing economic assistance to low4 income households or households in regions 

5 with disproportionately high energy costs. 

6 ‘‘(B) Transfers to the general fund of the 

7 Treasury to offset tax cuts. 

8 ‘‘(C) Transfers to the Federal Old-Age and 

9 Survivors Trust Fund and the Federal Dis10 ability Insurance Trust Fund established under 

11 section 201 of the Social Security Act (42 

12 U.S.C. 401) to provide supplemental funding 

13 for increases in Social Security benefits. 

14 ‘‘(D) Providing tuition assistance for high15 er education or alleviating Federal student loan 

16 debt. 

17 ‘‘(E) Investing in improvements to the in18 frastructure of the United States. 

19 ‘‘(F) Providing dividends directly to indi20 viduals and families. 

21 ‘‘(G) Providing transition assistance to 

22 workers and businesses in energy intensive and 

23 fossil fuel industries. 

24 ‘‘(H) Investing in mitigation and adapta25 tion measures that promote national security, 

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1 protect public health, conserve natural re2 sources, or fulfill international climate commit3 ments made by the United Nations Framework 

4 Convention on Climate Change. 

5 ‘‘(I) Reducing the debt of the United 

6 States. 

7 ‘‘(2) LIMITATION.—No amount may be made 

8 available from the American Opportunity Fund to 

9 create any new government agency or to fund gov10 ernment operations beyond what is necessary to 

11 carry out the uses provided in paragraph (1).’’. 

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

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

14 by adding at the end thereof the following new item: 

‘‘Sec. 9512. American Opportunity Fund.’’. 

15 SEC. 4. PUBLIC DISCLOSURE OF REVENUES AND EXPENDI16 TURES. 

17 (a) ESTABLISHMENT OF WEBSITE.—The Secretary 

18 of the Treasury, or the Secretary’s designee, shall estab19 lish a website for purposes of making the disclosures de20 scribed in subsection (b). 

21 (b) DISCLOSURES.—The Secretary shall make pub22 licly available, on an ongoing basis and as frequently as 

23 possible, the following information: 

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1 (1) The amount and sources of revenue attrib2 utable to this Act and the amendments made by this 

3 Act. 

4 (2) The amount, programs, and purposes for 

5 which expenditures are made from the American Op6 portunity Fund. 

7 SEC. 5. BUDGETARY PROVISIONS. 

8 (a) BUDGETARY EFFECTS OF THIS ACT.— 

9 (1) PAYGO SCORECARD.—The budgetary effects 

10 of this Act and the amendments made by this Act 

11 shall not be entered on either PAYGO scorecard 

12 maintained pursuant to section 4(d) of the Statutory 

13 Pay-As-You-Go Act of 2010 (2 U.S.C. 933(d)). 

14 (2) SENATE PAYGO SCORECARD.—The budg15 etary effects of this Act and the amendments made 

16 by this Act shall not be entered on any PAYGO 

17 scorecard maintained for purposes of section 201 of 

18 S. Con. Res. 21 (110th Congress). 

19 (b) EXCLUSION FROM DETERMINATION OF

20 BREACH.—Section 251(a) of the Balanced Budget and 

21 Emergency Deficit Control Act of 1985 (2 U.S.C. 901(a)) 

22 is amended by adding at the end the following: 

23 ‘‘(8) AMERICAN OPPORTUNITY FUND.—In de24 termining whether there has been a breach during a 

25 fiscal year, the Office of Management and Budget 

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1 shall not include amounts appropriated from the 

2 American Opportunity Fund during the fiscal year 

3 as discretionary appropriations if the Director of the 

4 Office of Management and Budget determines that 

5 amounts are appropriated to assist American fami6 lies and businesses in a manner described in section 

7 9512(c) of the Internal Revenue Code of 1986.’’. 

8 (c) PAYGO LEGISLATION.—Section 4 of the Statu9 tory Pay-As-You-Go Act of 2010 (2 U.S.C. 933) is amend10 ed by adding at the end the following: 

11 ‘‘(h) OFFSET FROM AMERICAN OPPORTUNITY

12 FUND.—In determining the budgetary effects of a 

13 PAYGO Act, CBO or OMB, as applicable, shall treat any 

14 amounts transferred from the American Opportunity 

15 Fund to the General Fund of the Treasury under the 

16 PAYGO Act as a savings if the Director of CBO or the 

17 Director of OMB, as applicable, determines that the 

18 amounts are transferred to assist American families and 

19 businesses in a manner described in section 9512(c) of the 

20 Internal Revenue Code of 1986.’’. 

21 SEC. 6. SEVERABILITY. 

22 If any provision of this Act or amendment made by 

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

24 to any person or circumstance, is held to be unconstitu25 tional, the remainder of this Act and amendments made 

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

2 amendment to any person or circumstance, shall not be 

3 affected by the holding. 

Æ 

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