II 

116TH CONGRESS 

1ST SESSION S. 1128 

To amend the Internal Revenue Code of 1986 to provide for carbon dioxide 

and other greenhouse gas emission fees, provide tax credits to workers, 

deliver additional benefits to retired and disabled Americans, and for 

other purposes. 

IN THE SENATE OF THE UNITED STATES 

APRIL 10, 2019 

Mr. WHITEHOUSE (for himself, Mr. SCHATZ, Mr. HEINRICH, and Mrs. GILLIBRAND) introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to provide 

for carbon dioxide and other greenhouse gas emission 

fees, provide tax credits to workers, deliver additional 

benefits to retired and disabled Americans, and for other 

purposes. 

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

3 SECTION 1. SHORT TITLE. 

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

5 Carbon Fee Act of 2019’’. 


pamtmann on DSKBFK8HB2PROD with BILLS
2 

•S 1128 IS

1 TITLE I—CARBON DIOXIDE AND 

2 OTHER GREENHOUSE GAS 

3 EMISSION FEES 

4 SEC. 101. CARBON DIOXIDE AND OTHER GREENHOUSE GAS 

5 EMISSION FEES. 

6 (a) IN GENERAL.—Chapter 38 of the Internal Rev7 enue Code of 1986 is amended by adding at the end there8 of the following new subchapter: 

9 ‘‘Subchapter E—Carbon Dioxide and Other 

10 Greenhouse Gas Emission Fees 

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

‘‘Sec. 4692. Fee on fluorinated greenhouse gases. 

‘‘Sec. 4693. Fee on facilities that emit greenhouse gases. 

‘‘Sec. 4694. Associated emissions. 

‘‘Sec. 4695. Border adjustments for energy-intensive manufactured goods. 

‘‘Sec. 4696. Definitions and other rules. 

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

12 ‘‘(a) IN GENERAL.— 

13 ‘‘(1) FOSSIL FUEL PRODUCTS PRODUCING CAR14 BON EMISSIONS.—There is hereby imposed a fee in 

15 an amount equal to the applicable amount at the 

16 rate specified in paragraph (2) on— 

17 ‘‘(A) coal— 

18 ‘‘(i) removed from any mine in the 

19 United States, or 

20 ‘‘(ii) entered into the United States 

21 for consumption, use, or warehousing, 

22 ‘‘(B) petroleum products— 


pamtmann on DSKBFK8HB2PROD with BILLS
3 

•S 1128 IS

1 ‘‘(i) removed from any refinery, 

2 ‘‘(ii) removed from any terminal, or 

3 ‘‘(iii) entered into the United States 

4 for consumption, use, or warehousing, and 

5 ‘‘(C) natural gas— 

6 ‘‘(i) entered into any processor, or 

7 ‘‘(ii) entered into the United States 

8 for consumption, use, or warehousing. 

9 ‘‘(2) RATE.—The rate specified in this para10 graph with respect to any product described in para11 graph (1) is an amount equal to the applicable 

12 amount per ton of carbon dioxide that would be 

13 emitted through the combustion of such product (as 

14 determined by the Secretary, in consultation with 

15 the Secretary of Energy and the Administrator of 

16 the Environmental Protection Agency). 

17 ‘‘(b) APPLICABLE AMOUNT.— 

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

19 the applicable amount is— 

20 ‘‘(A) for calendar year 2020, $52, 

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

22 which is not a national emissions target attain23 ment year, the sum of— 


pamtmann on DSKBFK8HB2PROD with BILLS
4 

•S 1128 IS

1 ‘‘(i) the product of the amount in ef2 fect under this subparagraph for the pre3 ceding calendar year and 106 percent, and 

4 ‘‘(ii) the inflation adjustment amount 

5 determined under paragraph (2), and 

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

7 which is a national emissions target attainment 

8 year, the sum of— 

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

10 subparagraph for the preceding calendar 

11 year, and 

12 ‘‘(ii) the inflation adjustment amount 

13 determined under paragraph (2). 

14 ‘‘(2) INFLATION ADJUSTMENT AMOUNT.— 

15 ‘‘(A) IN GENERAL.—The inflation adjust16 ment amount for any calendar year shall be an 

17 amount (not less than zero) equal to the prod18 uct of— 

19 ‘‘(i) the amount determined under 

20 paragraph (1)(B)(i) or (1)(C)(i), as appli21 cable, for such year, and 

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

23 for the preceding calendar year exceeds the 

24 CPI for the second preceding calendar 

25 year. 


pamtmann on DSKBFK8HB2PROD with BILLS
5 

•S 1128 IS

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

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

3 apply for purposes of this paragraph. 

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

5 this subsection shall be rounded up to the next whole 

6 dollar amount. 

7 ‘‘(4) NATIONAL EMISSIONS TARGET ATTAIN8 MENT YEAR.—For purposes of paragraph (1), a cal9 endar year is a national emissions target attainment 

10 year if the level of greenhouse gas emissions in the 

11 United States for the calendar year does not exceed 

12 20 percent of the level of greenhouse gas emissions 

13 in the United States for calendar year 2005 as de14 termined by the Secretary in consultation with the 

15 Administrator of the Environmental Protection 

16 Agency. 

17 ‘‘(c) REFUNDS FOR CAPTURING CARBON DIOXIDE

18 AND PRODUCTION OF CERTAIN GOODS.— 

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

20 AND STORAGE.— 

21 ‘‘(A) IN GENERAL.—In the case of a per22 son who— 

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

24 or natural gas for which a fee has been im25 posed under subsection (a)(1) in a manner 


pamtmann on DSKBFK8HB2PROD with BILLS
6 

•S 1128 IS

1 which results in the emission of qualified 

2 carbon dioxide, 

3 ‘‘(ii) captures the resulting emitted 

4 qualified carbon dioxide at a qualified facil5 ity, and 

6 ‘‘(iii)(I) disposes of such qualified car7 bon dioxide in secure storage, or 

8 ‘‘(II) utilizes such qualified carbon di9 oxide in a manner provided in subpara10 graph (D), 

11 there shall be allowed a refund, in the same 

12 manner as if it were an overpayment of the fee 

13 imposed by such subsection, to such person in 

14 the amount determined under subparagraph 

15 (B). 

16 ‘‘(B) AMOUNT OF REFUND.—The amount 

17 of the refund under this subparagraph is an 

18 amount equal to the product of— 

19 ‘‘(i) the applicable amount under sub20 section (b) for the calendar year in which 

21 such qualified carbon dioxide was captured 

22 and disposed or utilized, and 

23 ‘‘(ii) the adjusted tons of qualified 

24 carbon dioxide captured and disposed or 

25 utilized. 


pamtmann on DSKBFK8HB2PROD with BILLS
7 

•S 1128 IS

1 ‘‘(C) ADJUSTED TOTAL TONS.—For pur2 poses of subparagraph (B), the adjusted tons of 

3 qualified carbon dioxide captured and disposed 

4 or utilized shall be the total tons of qualified 

5 carbon dioxide captured and disposed or utilized 

6 reduced by the amount of any anticipated leak7 age of carbon dioxide into the atmosphere due 

8 to imperfect storage technology or otherwise, as 

9 determined by the Secretary in consultation 

10 with the Administrator of the Environmental 

11 Protection Agency. 

12 ‘‘(D) REQUIREMENTS.— 

13 ‘‘(i) IN GENERAL.—Any refund under 

14 subparagraph (A) shall apply only with re15 spect to qualified carbon dioxide that has 

16 been captured and disposed or utilized 

17 within the United States. 

18 ‘‘(ii) DISPOSAL AND SECURE STOR19 AGE.— 

20 ‘‘(I) SECURE STORAGE.—The 

21 Secretary, in consultation with the 

22 Administrator of the Environmental 

23 Protection Agency and the Secretary 

24 of Energy, shall establish regulations 

25 similar to the regulations under secVerDate Sep 11 2014 00:32 Apr 19, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S1128.IS S1128

pamtmann on DSKBFK8HB2PROD with BILLS
8 

•S 1128 IS

1 tion 45Q(f)(2) for determining ade2 quate security measures for the secure 

3 storage of qualified carbon dioxide for 

4 purposes of subparagraph (A)(iii)(I) 

5 such that the carbon dioxide does not 

6 escape into the atmosphere. Such reg7 ulations shall ensure the stored car8 bon dioxide may not be sold, trans9 ferred, or exported for any purpose 

10 that results in the emission of carbon 

11 dioxide. 

12 ‘‘(II) RECAPTURE.—The Sec13 retary shall, by regulations, provide 

14 for recapturing the benefit of any re15 fund made under subparagraph (A) 

16 with respect to any qualified carbon 

17 dioxide which is disposed in secure 

18 storage and ceases to be stored in a 

19 manner consistent with the require20 ments of this section. 

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

22 in consultation with the Secretary of En23 ergy and the Administrator of the Environ24 mental Protection Agency, shall establish 

25 regulations providing for the appropriate 


pamtmann on DSKBFK8HB2PROD with BILLS
9 

•S 1128 IS

1 methods and manners for the utilization of 

2 qualified carbon dioxide under subpara3 graph (A)(iii)(II), including the utilization 

4 of captured carbon dioxide for enhanced oil 

5 or gas recovery and the production of sub6 stances such as plastics, biofuels, algae, 

7 and chemicals. Such regulations shall pro8 vide for the minimization of the escape or 

9 further emission of the qualified carbon di10 oxide into the atmosphere. 

11 ‘‘(E) QUALIFIED CARBON DIOXIDE; QUALI12 FIED FACILITY.—For purposes of this para13 graph— 

14 ‘‘(i) QUALIFIED CARBON DIOXIDE.— 

15 ‘‘(I) IN GENERAL.—The term 

16 ‘qualified carbon dioxide’ means car17 bon dioxide captured from an indus18 trial source which— 

19 ‘‘(aa) would otherwise be re20 leased into the atmosphere as in21 dustrial emission of greenhouse 

22 gas, and 

23 ‘‘(bb) is measured at the 

24 source of capture and verified at 


pamtmann on DSKBFK8HB2PROD with BILLS
10 

•S 1128 IS

1 the point of disposal, injection, or 

2 utilization. 

3 ‘‘(II) RECYCLED CARBON DIOX4 IDE.—The term ‘qualified carbon di5 oxide’ includes the initial deposit of 

6 captured carbon dioxide used as a ter7 tiary injectant. Such term does not in8 clude carbon dioxide that is recap9 tured, recycled, and re-injected as 

10 part of the enhanced oil and natural 

11 gas recovery process. 

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

13 ‘qualified facility’ means any industrial fa14 cility— 

15 ‘‘(I) which is owned by the tax16 payer, and 

17 ‘‘(II) at which carbon capture 

18 equipment is placed in service. 

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

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

21 product, or natural gas for which a fee has been im22 posed under subsection (a)(1) as an input for a 

23 manufactured good that encapsulates carbon dioxide 

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

25 emission of carbon dioxide in the manufacturing or 


pamtmann on DSKBFK8HB2PROD with BILLS
11 

•S 1128 IS

1 subsequent use of such good, a refund shall be al2 lowed to such person in the same manner as if it 

3 were an overpayment of the fee imposed by such sec4 tion in an amount that is equal to the product of— 

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

6 amount under subsection (b) for the calendar 

7 year in which such product was used, and 

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

9 would have otherwise been emitted through the 

10 combustion of such product. 

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

12 exports any coal, petroleum product, or natural gas 

13 from the United States for which a fee has been im14 posed under subsection (a)(1), a refund shall be al15 lowed to such person in the same manner as if it 

16 were an overpayment of the fee imposed by such sec17 tion in an amount that is equal to the fee previously 

18 imposed under such subsection with respect to such 

19 product (determined without regard to any increase 

20 under section 4694). 

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

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

23 in an amount determined under subsection (b) on 

24 fluorinated greenhouse gases— 


pamtmann on DSKBFK8HB2PROD with BILLS
12 

•S 1128 IS

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

2 production facility, or 

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

4 fluorinated greenhouse gas importer. 

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

6 by subsection (a) shall be equal to the applicable percent7 age (as defined in subsection (c)(4)) of the applicable 

8 amount determined under section 4691(b) per ton of car9 bon dioxide equivalent produced or imported. 

10 ‘‘(c) DEFINITIONS.—For purposes of this section— 

11 ‘‘(1) FLUORINATED GREENHOUSE GASES.—The 

12 term ‘fluorinated greenhouse gases’ means sulfur 

13 hexafluoride (SF6), nitrogen trifluoride (NF3), any 

14 hydrofluorocarbon, any perfluorocarbon, any fully 

15 fluorinated linear, branched or cyclic alkane, ether, 

16 tertiary amine or aminoether, any perfluoropoly17 ether, any hydrofluoropolyether, and any other fluo18 rocarbon except for substances with vapor pressures 

19 of less than 1 mm of Hg absolute at 25 degrees Cel20 sius. 

21 ‘‘(2) FLUORINATED GREENHOUSE GAS PRODUC22 TION FACILITY.—The term ‘fluorinated greenhouse 

23 gas production facility’ means any facility which is 

24 included under the industrial gas supplier source 

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


pamtmann on DSKBFK8HB2PROD with BILLS
13 

•S 1128 IS

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

2 of the enactment of the American Opportunity Car3 bon Fee Act of 2019. 

4 ‘‘(3) FLUORINATED GREENHOUSE GAS IM5 PORTER.—The term ‘fluorinated greenhouse gas im6 porter’ means any importer who is included under— 

7 ‘‘(A) the industrial gas supplier source cat8 egory under subpart OO of part 98 of title 40, 

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

10 the enactment of the American Opportunity 

11 Carbon Fee Act of 2019, or 

12 ‘‘(B) the source category under subpart 

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

14 ‘‘(4) APPLICABLE PERCENTAGE.—The term 

15 ‘applicable percentage’ means the percentage deter16 mined in accordance with the following table: 

‘‘In the case of any taxable year 

beginning in calendar year: 

The applicable 

percentage is: 

2020, 2021, or 2022 ............................................................. 10 percent

2023 ...................................................................................... 20 percent

2024 ...................................................................................... 30 percent

2025 ...................................................................................... 40 percent

2026 ...................................................................................... 50 percent

2027 ...................................................................................... 60 percent

2028 ...................................................................................... 70 percent

2029 ...................................................................................... 80 percent

2030 ...................................................................................... 90 percent

2031 or thereafter ................................................................ 100 percent. 

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

18 determining fluorinated greenhouse gases produced or imVerDate Sep 11 2014 00:32 Apr 19, 2019 Jkt 089200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\S1128.IS S1128

pamtmann on DSKBFK8HB2PROD with BILLS
14 

•S 1128 IS

1 ported under subsection (a), there shall not be taken into 

2 account any fluorinated greenhouse gases exported from 

3 the United States in bulk or exported from the United 

4 States in equipment pre-charged with fluorinated green5 house gases or containing fluorinated greenhouse gases in 

6 closed cell foams. 

7 ‘‘(e) REFUND FOR CONSUMPTIVE USES AND DE8 STRUCTION.—In the case of a person who uses any 

9 fluorinated greenhouse gas for which a fee has been im10 posed under paragraph (1) or (2) of subsection (a) as an 

11 input for a manufactured good that transforms the 

12 fluorinated greenhouse gas such that it cannot later be 

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

14 a refund shall be allowed to such person in the same man15 ner as if it were an overpayment of the fee imposed by 

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

17 of— 

18 ‘‘(1) an amount equal to the applicable percent19 age (as defined in subsection (c)(4)) of the applica20 ble amount under section 4691(b), for the calendar 

21 year in which such fluorinated greenhouse gas was 

22 used or destroyed, and 

23 ‘‘(2) the excess (if any) of— 


pamtmann on DSKBFK8HB2PROD with BILLS
15 

•S 1128 IS

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

2 the fluorinated greenhouse gases used or de3 stroyed, over 

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

5 any fluorinated greenhouse gases created as the 

6 result of the transformation or destruction 

7 process. 

8 ‘‘SEC. 4693. FEE ON FACILITIES THAT EMIT GREENHOUSE 

9 GASES. 

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

11 in an amount equal to the applicable percentage of the 

12 applicable amount determined under section 4691(b) per 

13 ton of carbon dioxide equivalent emitted (including associ14 ated emissions) from any facility which— 

15 ‘‘(1)(A) is included under— 

16 ‘‘(i) the aluminum production source cat17 egory under subpart F of part 98 of title 40, 

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

19 the enactment of the American Opportunity 

20 Carbon Fee Act of 2019, 

21 ‘‘(ii) the HCFC–22 production and HFC– 

22 23 destruction source category under subpart O 

23 of such part (as so in effect), or 


pamtmann on DSKBFK8HB2PROD with BILLS
16 

•S 1128 IS

1 ‘‘(iii) the fluorinated gas production source 

2 category under subpart L of such part (as so in 

3 effect), or 

4 ‘‘(B) which is not described in subparagraph 

5 (A) and is required to report emissions (or which 

6 would be required to report emissions notwith7 standing any other provision of law prohibiting the 

8 implementation of or use of funds for such require9 ments), or to which emissions are attributed, under 

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

11 in effect on the date of the enactment of the Amer12 ican Opportunity Carbon Fee Act of 2019, and 

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

14 greenhouse gases at a rate equal to the carbon diox15 ide equivalent of not less than 25,000 tons by reason 

16 of the combustion or processing of any product other 

17 than coal, petroleum products, and natural gas. 

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

19 this section, the term ‘applicable percentage’ means— 

20 ‘‘(1) in the case of a facility described in sub21 section (a)(1)(A), the percentage determined in ac22 cordance with section 4692(c)(5), or 

23 ‘‘(2) in the case of a facility described in sub24 section (a)(1)(B), 100 percent. 


pamtmann on DSKBFK8HB2PROD with BILLS
17 

•S 1128 IS

1 ‘‘SEC. 4694. ASSOCIATED EMISSIONS. 

2 ‘‘(a) REPORTING PROGRAM.— 

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

4 2022, the Secretary, in consultation with the Admin5 istrator of the Environmental Protection Agency, the 

6 Secretary of the Interior, the Administrator of the 

7 Energy Information Administration, and the Admin8 istrator of the Pipeline and Hazardous Materials 

9 Safety Administration, shall establish and implement 

10 a program to identify all major source categories of 

11 associated emissions and collect data on associated 

12 emissions from the coal, petroleum products, and 

13 natural gas supply chains. 

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

15 months after the date that the Secretary implements 

16 the program described in paragraph (1), and annu17 ally thereafter, the Secretary shall issue a report, to 

18 be made available to the public and the appropriate 

19 committees of Congress, on associated emissions, in20 cluding— 

21 ‘‘(A) identification of all major source cat22 egories of associated emissions, and 

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

24 carbon dioxide equivalent, of— 

25 ‘‘(i) methane and other greenhouse 

26 gases emitted across the coal supply chain 


pamtmann on DSKBFK8HB2PROD with BILLS
18 

•S 1128 IS

1 within the United States during the pre2 ceding calendar year, 

3 ‘‘(ii) methane and other greenhouse 

4 gases emitted across the petroleum prod5 ucts supply chain within the United States 

6 during the preceding calendar year, and 

7 ‘‘(iii) methane and other greenhouse 

8 gases emitted across the natural gas sup9 ply chain within the United States during 

10 the preceding calendar year. 

11 ‘‘(b) SUPPLEMENTARY FEE FOR ASSOCIATED EMIS12 SIONS.— 

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

14 beginning after 2022, the fee imposed under section 

15 4691(a)(1) with respect to coal shall be increased by 

16 the amount determined by the Secretary (in con17 sultation with the Administrator of the Environ18 mental Protection Agency) necessary to ensure that 

19 the total fees collected under such section with re20 spect to coal are equal to the total amount of such 

21 fees that would be collected on coal if the fee im22 posed under section 4691(a)(1) also applied to the 

23 carbon-dioxide equivalent of greenhouse gas emis24 sions reported under subsection (a)(2)(B)(i). 


pamtmann on DSKBFK8HB2PROD with BILLS
19 

•S 1128 IS

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

2 any calendar year beginning after 2022, the fee im3 posed under section 4691(a)(1) with respect to pe4 troleum products shall be increased by the amount 

5 determined by the Secretary (in consultation with 

6 the Administrator of the Environmental Protection 

7 Agency) necessary to ensure that the total fees col8 lected under such section with respect to petroleum 

9 products are equal to the total amount of such fees 

10 that would be collected on petroleum products if the 

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

12 the carbon-dioxide equivalent of greenhouse gas 

13 emissions reported under subsection (a)(2)(B)(ii). 

14 ‘‘(3) NATURAL GAS.—In the case of any cal15 endar year beginning after 2022, the fee imposed 

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

17 shall be increased by the amount determined by the 

18 Secretary (in consultation with the Administrator of 

19 the Environmental Protection Agency) necessary to 

20 ensure that the total fees collected under such sec21 tion with respect to natural gas are equal to the 

22 total amount of such fees that would be collected on 

23 natural gas if the fee imposed under section 

24 4691(a)(1) also applied to the carbon-dioxide equivaVerDate Sep 11 2014 00:32 Apr 19, 2019 Jkt 089200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 E:\BILLS\S1128.IS S1128

pamtmann on DSKBFK8HB2PROD with BILLS
20 

•S 1128 IS

1 lent of greenhouse gas emissions reported under sub2 section (a)(2)(B)(iii). 

3 ‘‘SEC. 4695. BORDER ADJUSTMENTS FOR ENERGY-INTEN4 SIVE MANUFACTURED GOODS. 

5 ‘‘(a) PURPOSE.—The purpose of this section is to en6 sure the environmental effectiveness of this subchapter. 

7 ‘‘(b) EXPORTS.— 

8 ‘‘(1) IN GENERAL.—In the case of any energy9 intensive manufactured good which is exported from 

10 the United States, the Secretary shall pay to the 

11 person exporting such good a refund equal to the 

12 amount of the cost of such good attributable to any 

13 fees imposed under this subchapter related to the 

14 manufacturing of such energy-intensive manufac15 tured good (as determined under regulations estab16 lished by the Secretary). 

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

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

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

20 or comparable domestically produced energy-inten21 sive manufactured goods by the foreign nation or 

22 governmental unit to which such good is exported. 

23 ‘‘(c) IMPORTS.— 

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

25 the case of any energy-intensive manufactured good 


pamtmann on DSKBFK8HB2PROD with BILLS
21 

•S 1128 IS

1 imported into the United States, there is imposed an 

2 equivalency fee on the person importing such good 

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

4 would be attributable to any fees imposed under this 

5 subchapter related to the manufacturing of such 

6 good if any inputs or processes used in manufac7 turing such good were subject to such fees (as deter8 mined under regulations established by the Sec9 retary). 

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

11 equivalency fee under paragraph (1) shall be reduced 

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

13 energy-intensive manufactured goods by the foreign 

14 nation or governmental units from which such good 

15 was imported. 

16 ‘‘(d) TREATMENT OF ALTERNATIVE POLICIES AS

17 FEES.—Under regulations established by the Secretary, 

18 foreign policies that have substantially the same effect in 

19 reducing emissions of greenhouse gases as fees shall be 

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

21 (c)(2). 

22 ‘‘(e) REGULATORY AUTHORITY.— 

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

24 with the Administrator of the Environmental Protec25 tion Agency and the Secretary of Energy in estabVerDate Sep 11 2014 00:32 Apr 19, 2019 Jkt 089200 PO 00000 Frm 00021 Fmt 6652 Sfmt 6201 E:\BILLS\S1128.IS S1128

pamtmann on DSKBFK8HB2PROD with BILLS
22 

•S 1128 IS

1 lishing rules and regulations implementing the pur2 poses of this section. 

3 ‘‘(2) TREATIES.—The Secretary, in consulta4 tion with the Secretary of State, may adjust the ap5 plicable amounts of the refunds and equivalency fees 

6 under this section in a manner that is consistent 

7 with any obligations of the United States under an 

8 international agreement. 

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

10 ‘‘(a) DEFINITIONS.—For purposes of this sub11 chapter: 

12 ‘‘(1) ASSOCIATED EMISSIONS.—The term ‘asso13 ciated emissions’ means greenhouse gas emissions 

14 attributable to venting, flaring, and leakage across 

15 the supply chain. 

16 ‘‘(2) CARBON DIOXIDE EQUIVALENT.—The 

17 term ‘carbon dioxide equivalent’ means, with respect 

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

19 has a global warming potential equivalent to 1 met20 ric ton of carbon dioxide, as determined pursuant to 

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

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

23 the enactment of the American Opportunity Carbon 

24 Fee Act of 2019. 


pamtmann on DSKBFK8HB2PROD with BILLS
23 

•S 1128 IS

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

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

3 ‘‘(4) ENERGY-INTENSIVE MANUFACTURED

4 GOOD.— 

5 ‘‘(A) IN GENERAL.—The term ‘energy-in6 tensive manufactured good’ means any manu7 factured good (other than any petroleum prod8 uct or fossil fuel) for which not less than 5 per9 cent of the cost of which is attributable to en10 ergy costs, as determined by the Secretary. 

11 ‘‘(B) LIST OF ENERGY-INTENSIVE MANU12 FACTURED GOODS.— 

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

14 180 days after the date of the enactment 

15 of this Act, the Secretary shall publish a 

16 list of goods which qualify as energy-inten17 sive manufactured goods. 

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

19 than annually, the Secretary shall update 

20 the list published under this subparagraph. 

21 ‘‘(5) GREENHOUSE GAS.—The term ‘greenhouse 

22 gas’ has the meaning given such term under section 

23 211(o)(1)(G) of the Clean Air Act, as in effect on 

24 the date of the enactment of the American Oppor25 tunity Carbon Fee Act of 2019. 


pamtmann on DSKBFK8HB2PROD with BILLS
24 

•S 1128 IS

1 ‘‘(6) NATURAL GAS.—The term ‘natural gas’ 

2 has the same meaning given such term under section 

3 613A(e)(2). 

4 ‘‘(7) PETROLEUM PRODUCT.—The term ‘petro5 leum product’ has the same meaning given such 

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

7 ‘‘(8) SUPPLY CHAIN.—The term ‘supply chain’ 

8 means extraction and processing of coal and natural 

9 gas, extraction and refining of petroleum products, 

10 and the transmission, transport, storage, distribu11 tion, import, export, and other activities related to 

12 supplying coal, petroleum products, and natural gas 

13 to a consumer, not otherwise covered elsewhere in 

14 this subchapter as determined by the Administrator 

15 of the Environmental Protection Agency. 

16 ‘‘(9) TON.— 

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

18 1,000 kilograms. In the case of any greenhouse 

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

20 amount of such gas in cubic meters which is the 

21 equivalent of 1,000 kilograms on a molecular 

22 weight basis. 

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

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

25 this subchapter on such fraction shall be the 


pamtmann on DSKBFK8HB2PROD with BILLS
25 

•S 1128 IS

1 same fraction of the amount of such fee im2 posed on a whole ton. 

3 ‘‘(10) UNITED STATES.—The term ‘United 

4 States’ has the meaning given such term by section 

5 4612(a)(4). 

6 ‘‘(b) OTHER RULES.— 

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

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

9 shall be assessed and collected in the same manner 

10 as taxes under this subtitle. 

11 ‘‘(2) REGULATIONS.—The Secretary shall pre12 scribe such regulations as may be necessary to carry 

13 out the provisions of this subchapter.’’. 

14 (b) CLERICAL AMENDMENT.—The table of sub15 chapters for chapter 38 of the Internal Revenue Code of 

16 1986 is amended by adding at the end the following new 

17 item: 

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

FEES’’. 

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

19 this section shall apply to taxable years beginning after 

20 December 31, 2019. 


pamtmann on DSKBFK8HB2PROD with BILLS
26 

•S 1128 IS

1 TITLE II—RETURNING FEE REV2 ENUE TO THE AMERICAN 

3 PEOPLE 

4 SEC. 201. ESTABLISHMENT OF REFUNDABLE CREDIT FOR 

5 WORKERS. 

6 (a) IN GENERAL.—Subpart C of part IV of sub7 chapter A of chapter 1 of the Internal Revenue Code of 

8 1986 is amended by inserting after section 36 the fol9 lowing new section: 

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

11 ‘‘(a) IN GENERAL.—In the case of an eligible indi12 vidual, there shall be allowed as a credit against the tax 

13 imposed by this subtitle for the taxable year an amount 

14 equal to the lesser of— 

15 ‘‘(1) 6.2 percent of the earned income of the 

16 taxpayer, or 

17 ‘‘(2) $900 (twice such amount in the case of a 

18 joint return). 

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

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

21 other than— 

22 ‘‘(1) any nonresident alien individual, 

23 ‘‘(2) any individual with respect to whom a de24 duction under section 151 is allowable to another 

25 taxpayer for a taxable year beginning in the calVerDate Sep 11 2014 00:32 Apr 19, 2019 Jkt 089200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6201 E:\BILLS\S1128.IS S1128

pamtmann on DSKBFK8HB2PROD with BILLS
27 

•S 1128 IS

1 endar year in which the individual’s taxable year be2 gins, and 

3 ‘‘(3) any individual who, for the month of De4 cember of the taxable year, was entitled to or eligible 

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

6 (2) of section 202(b) of the American Opportunity 

7 Carbon Fee Act of 2019. 

8 ‘‘(c) EARNED INCOME.— 

9 ‘‘(1) IN GENERAL.—For purposes of this sec10 tion, the term ‘earned income’ has the meaning 

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

12 such term shall not include net earnings from self13 employment which are not taken into account in 

14 computing taxable income. 

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

16 For purposes of paragraph (1), any amount ex17 cluded from gross income by reason of section 112 

18 shall be treated as earned income which is taken 

19 into account in computing taxable income for the 

20 taxable year. 

21 ‘‘(d) INFLATION ADJUSTMENT.— 

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

23 year beginning after 2020, the $900 amount in sub24 section (a)(2) shall be increased by an amount equal 

25 to— 


pamtmann on DSKBFK8HB2PROD with BILLS
28 

•S 1128 IS

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

2 ‘‘(B) the percentage (if any) by which— 

3 ‘‘(i) the CPI for the preceding cal4 endar year, exceeds 

5 ‘‘(ii) the CPI for calendar year 2019. 

6 ‘‘(2) CPI.—Rules similar to the rules of para7 graphs (4) and (5) of section 1(f) shall apply for 

8 purposes of this subsection. 

9 ‘‘(3) ROUNDING.—If any dollar amount, after 

10 being increased under paragraph (1), is not a mul11 tiple of $10, such dollar amount shall be rounded to 

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

13 (b) REFUNDS DISREGARDED IN THE ADMINISTRA14 TION OF FEDERAL PROGRAMS AND FEDERALLY AS15 SISTED PROGRAMS.—Any credit or refund allowed or 

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

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

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

19 be taken into account as resources for purposes of deter20 mining the eligibility of such individual or any other indi21 vidual for benefits or assistance, or the amount or extent 

22 of benefits or assistance, under any Federal program or 

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

24 part with Federal funds. 

25 (c) CONFORMING AMENDMENTS.— 


pamtmann on DSKBFK8HB2PROD with BILLS
29 

•S 1128 IS

1 (1) Section 6211(b)(4)(A) of the Internal Rev2 enue Code of 1986 is amended by inserting ‘‘36A,’’ 

3 after ‘‘36,’’. 

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

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

6 amended by inserting after the item relating to sec7 tion 36 the following new item: 

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

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

9 this section shall apply to taxable years beginning after 

10 December 31, 2019. 

11 SEC. 202. ESTABLISHMENT OF PAYMENTS TO SOCIAL SECU12 RITY BENEFICIARIES AND OTHER RETIRED 

13 AND DISABLED AMERICANS. 

14 (a) AUTHORITY TO MAKE PAYMENTS.—The Sec15 retary of the Treasury or the Secretary of the Treasury’s 

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

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

18 calendar year 2020 and each year thereafter, disburse a 

19 payment to each eligible beneficiary in an amount equal 

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

21 preceding calendar year under section 36A(a)(2) of the In22 ternal Revenue Code of 1986. 

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

24 section, the term ‘‘eligible beneficiary’’ means an indiVerDate Sep 11 2014 00:32 Apr 19, 2019 Jkt 089200 PO 00000 Frm 00029 Fmt 6652 Sfmt 6201 E:\BILLS\S1128.IS S1128

pamtmann on DSKBFK8HB2PROD with BILLS
30 

•S 1128 IS

1 vidual who, for the month of December of the preceding 

2 year, was— 

3 (1) entitled to any benefit payment described in 

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

5 American Recovery and Reinvestment Act of 2009; 

6 or 

7 (2) eligible for a benefit payment described in 

8 subparagraph (C) of such section. 

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

10 made under this section only to an eligible beneficiary who 

11 resides in any State (as defined in section 204(f)), as de12 termined based on the current address of record for such 

13 beneficiary under the applicable program for payment of 

14 benefits described in subsection (b). 

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

16 may not receive more than 1 payment per calendar year 

17 under this section, regardless of whether such beneficiary 

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

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

20 (e) IDENTIFICATION OF RECIPIENTS.—The Commis21 sioner of Social Security, the Railroad Retirement Board, 

22 and the Secretary of Veterans Affairs shall certify the eli23 gible beneficiaries entitled to receive payments under this 

24 section and provide the Secretary with any information 

25 necessary to disburse such payments. 


pamtmann on DSKBFK8HB2PROD with BILLS
31 

•S 1128 IS

1 (f) APPLICATION OF ADDITIONAL RULES.—Rules 

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

3 section 2201 of the American Recovery and Reinvestment 

4 Act of 2009 shall apply for purposes of payments under 

5 this section. 

6 SEC. 203. STATE-BASED COST MITIGATION GRANT PRO7 GRAM. 

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

9 shall provide to each State which meets the requirements 

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

11 year after 2019 in an amount determined under sub12 section (c). 

13 (b) USE OF FUNDS.—A State receiving a cost mitiga14 tion grant under this section may use the grant to assist 

15 with the transition to a low-carbon economy, including— 

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

17 energy expenses and meeting cost increases attrib18 utable to the fees imposed under subchapter E of 

19 chapter 38 of the Internal Revenue Code of 1986 

20 (as added by this Act); 

21 (2) to assist rural households in reducing en22 ergy expenses and meeting such increases attrib23 utable to such fees; 


pamtmann on DSKBFK8HB2PROD with BILLS
32 

•S 1128 IS

1 (3) to provide job training and worker transi2 tion assistance, with priority given to workers and 

3 former workers in fossil-fuel related industries; or 

4 (4) to assist the State in dealing with climate 

5 change or the transition to a low-carbon economy. 

6 (c) AMOUNT OF GRANT.— 

7 (1) IN GENERAL.—The amount of the cost miti8 gation grant made to any State for any calendar 

9 year shall be equal to the product of— 

10 (A) the annual grant limitation determined 

11 under paragraph (3) for such calendar year; 

12 and 

13 (B) the State allocation percentage for the 

14 State (determined under paragraph (2)). 

15 (2) STATE ALLOCATION PERCENTAGE.—The 

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

17 amount (expressed as a percentage) equal to the 

18 quotient of— 

19 (A) the population of such State (as re20 ported in the most recent decennial census); 

21 and 

22 (B) the population of all States (as re23 ported in the most recent decennial census). 

24 (3) ANNUAL APPROPRIATION FOR GRANTS.— 


pamtmann on DSKBFK8HB2PROD with BILLS
33 

•S 1128 IS

1 (A) IN GENERAL.—The annual grant limi2 tation is $10,000,000,000. 

3 (B) INFLATION ADJUSTMENT.— 

4 (i) IN GENERAL.—In the case of any 

5 calendar year after 2020, the 

6 $10,000,000,000 amount in subparagraph 

7 (A) shall be increased by an amount equal 

8 to— 

9 (I) such dollar amount; multi10 plied by 

11 (II) the percentage (if any) by 

12 which— 

13 (aa) the CPI for the pre14 ceding calendar year; exceeds 

15 (bb) the CPI for calendar 

16 year 2019. 

17 (ii) CPI.—Rules similar to the rules 

18 of paragraphs (4) and (5) of section 1(f) 

19 of the Internal Revenue Code of 1986 shall 

20 apply for purposes of this subparagraph. 

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

22 one or more States do not meet the requirements de23 scribed in subsection (d) for a calendar year, an 

24 amount equal to the State allocation percentage for 

25 such State or States shall be distributed to each 


pamtmann on DSKBFK8HB2PROD with BILLS
34 

•S 1128 IS

1 State which did meet such conditions in an amount 

2 equal to the product of— 

3 (A) such amount; and 

4 (B) the State allocation percentage of such 

5 State (determined by not taking into account 

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

7 State which did not meet the requirements of 

8 subsection (d) for such calendar year). 

9 (d) REQUIREMENTS FOR RECEIPT OF GRANT.— 

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

11 a cost mitigation grant for any calendar year if— 

12 (A) the chief executive officer of the State 

13 certifies that the State will use a portion of 

14 such grant as needed to deliver benefits to eligi15 ble low-income individuals through a household 

16 rebate program; 

17 (B) the State has filed with the Secretary 

18 of the Treasury a State plan covering the cal19 endar year which details the use of the funds 

20 received under the grant; 

21 (C) the State agrees to comply with any 

22 audit requirements under subsection (d); and 

23 (D) the State has complied with the re24 quirements of this section for all preceding 

25 years or the State has remedied all prior nonVerDate Sep 11 2014 00:32 Apr 19, 2019 Jkt 089200 PO 00000 Frm 00034 Fmt 6652 Sfmt 6201 E:\BILLS\S1128.IS S1128

pamtmann on DSKBFK8HB2PROD with BILLS
35 

•S 1128 IS

1 compliance to the satisfaction of the Secretary 

2 of the Treasury. 

3 (2) HOUSEHOLD REBATE PROGRAM.—For pur4 poses of paragraph (1)(A)— 

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

6 rebate program’’ means a program for deliv7 ering to monthly benefits in an aggregate an8 nual amount equal to the applicable amount to 

9 all eligible low-income individuals through a 

10 State-administered electronic benefit transfer 

11 system. 

12 (B) APPLICABLE AMOUNT.—The term 

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

14 eligible low-income individual for any calendar 

15 year, an amount equal to the excess of— 

16 (i) the amount in effect for taxable 

17 years ending with or within the preceding 

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

19 the Internal Revenue Code of 1986; over 

20 (ii) any amount allowed or claimed as 

21 a credit by such individual under such sec22 tion for the taxable year ending with or 

23 within the preceding calendar year. 

24 (C) ELIGIBLE LOW-INCOME INDIVIDUAL.— 

25 The term ‘‘eligible low-income individual’’ 


pamtmann on DSKBFK8HB2PROD with BILLS
36 

•S 1128 IS

1 means, with respect to any calendar year, any 

2 individual who— 

3 (i) has attained the age of 18 before 

4 the end of the calendar year; 

5 (ii) lives in a household that has a 

6 gross income that does not exceed 150 per7 cent of the poverty line as defined by sec8 tion 673(2) of the Community Services 

9 Block Grant Act; 

10 (iii) participates in a federally funded 

11 State administered assistance program or 

12 otherwise applies for such benefits under 

13 such a program; and 

14 (iv) for the month of December of the 

15 preceding calendar year, was not entitled 

16 to or eligible for a benefit payment de17 scribed in section 202(b). 

18 (D) COORDINATION RULES.—The Sec19 retary of the Treasury shall coordinate with the 

20 States and other applicable Federal agencies to 

21 identify eligible low-income individuals. 

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

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

24 such uses comply with the requirements of this section and 

25 with the uses identified by the State under subsection 


pamtmann on DSKBFK8HB2PROD with BILLS
37 

•S 1128 IS

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

2 section if the Secretary determines that a State has not 

3 complied with such requirements. 

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

5 ‘‘State’’ includes the District of Columbia, the Common6 wealth of Puerto Rico, Guam, American Samoa, the Com7 monwealth of the Northern Mariana Islands, and the 

8 United States Virgin Islands. 

9 (g) APPROPRIATIONS.—For any fiscal year, there is 

10 hereby appropriated an amount equal to the annual grant 

11 limitation determined under subsection (c)(3) for the cal12 endar year in which such fiscal year begins. 

13 TITLE III—OTHER PROVISIONS 

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

16 (a) ESTABLISHMENT OF WEBSITE.—The Secretary 

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

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

22 possible, the following information: 

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

25 Act. 


pamtmann on DSKBFK8HB2PROD with BILLS
38 

•S 1128 IS

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

3 SEC. 302. SEVERABILITY. 

4 If any provision of this Act or amendment made by 

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

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

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

9 amendment to any person or circumstance, shall not be 

10 affected by the holding. 

Æ 


pamtmann on DSKBFK8HB2PROD with BILLS