I 
113TH CONGRESS 
2D SESSION 
H. R. 5873 
To amend the Internal Revenue Code of 1986 to provide for repealing the 
gas tax and establishing a carbon tax on highway fuels, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 11, 2014 
Mr. HUFFMAN introduced the following bill; which was referred to the Com-
mittee on Ways and Means, and in addition to the Committee on Energy 
and Commerce, for a period to be subsequently determined by the Speak-
er, in each case for consideration of such provisions as fall within the ju-
risdiction of the committee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to provide 
for repealing the gas tax and establishing a carbon tax 
on highway fuels, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Gas Tax Replacement 
Act of 2014’’. 
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SEC. 2. REPEAL OF EXCISE TAX ON GASOLINE AND DIESEL 
FUEL. 
(a) MANUFACTURERS TAX.—Section 4081(a)(2)(A) 
of the Internal Revenue Code of 1986 is amended— 
(1) in clause (i) by striking ‘‘18.3 cents per gal-
lon’’ and inserting ‘‘0 cents per gallon’’, and 
(2) in clause (ii) by striking ‘‘24.3 cents per 
gallon’’ and inserting ‘‘0 cents per gallon’’. 
(b) RETAIL TAX.—Section 4041(a) of the Internal 
Revenue Code of 1986 is amended by striking paragraph 
(1). 
(c) CONFORMING AMENDMENTS.— 
(1) Section 4081 of the Internal Revenue Code 
of 1986 is amended— 
(A) in subsection (a)(2) by striking sub-
paragraph (D), 
(B) by striking subsection (c), and 
(C) in subsection (d) by striking paragraph 
(1). 
(2) Section 4041 of the Internal Revenue Code 
of 1986 is amended— 
(A) by amending the heading of subsection 
(a) to read as follows: ‘‘SPECIAL
MOTOR 
FUELS’’, and 
(B) in subsection (a)(2)(B)(i) by striking 
‘‘the 
rate 
of 
tax 
specified 
in 
section 
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4081(a)(2)(A)(i) which is in effect at the time 
of such sale or use,’’ and inserting ‘‘18.3 cents 
per gallon’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to fuel sold or used after December 
31, 2015. 
SEC. 3. CARBON TAX ON HIGHWAY FUELS. 
(a) IN GENERAL.—Paragraph (1) of section 4611(c) 
of the Internal Revenue Code of 1986 is amended by strik-
ing ‘‘and’’ at the end of subparagraph (A), by striking 
the period at the end of subparagraph (B) and inserting 
‘‘, and’’, and by inserting after subparagraph (B) the fol-
lowing new subparagraph: 
‘‘(C) the carbon dioxide equivalent rate.’’. 
(b) RATES.— 
(1) IN
GENERAL.—Paragraph (2) of section 
4611(c) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘and’’ at the end of subpara-
graph (A), by striking the period at the end of sub-
paragraph (B) and inserting ‘‘, and’’, and by insert-
ing after subparagraph (B) the following new sub-
paragraph: 
‘‘(C) the carbon dioxide equivalent rate 
is— 
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‘‘(i) $50 per metric ton (or portion 
thereof) of total life-cycle emissions of car-
bon dioxide, and 
‘‘(ii) an equivalent amount per metric 
ton (or portion thereof) of total life-cycle 
emissions of any other greenhouse gas de-
termined on a ratio of the amount such 
other greenhouse gas per metric ton as the 
amount of carbon dioxide per metric ton, 
in the crude oil or petroleum product (as the 
case may be) subject to tax under subsection 
(a) which is to be refined into gasoline or diesel 
fuel. 
For purposes of subparagraph (C), total life-cycle 
emissions of carbon dioxide and other greenhouse 
gases shall be determined by the Administrator of 
the Environmental Protection Agency pursuant to 
section 4 of the Gas Tax Replacement Act of 
2014.’’. 
(2) ADJUSTMENT
FOR
INFLATION.—Section 
4611(c) of the Internal Revenue Code of 1986 is 
amended by adding at the end the following: 
‘‘(3) CARBON DIOXIDE EQUIVALENT RATE IN-
FLATION ADJUSTMENT.— 
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‘‘(A) IN GENERAL.—In the case of any cal-
endar year after 2014, the dollar amount in 
paragraph (2)(C) shall be increased by an 
amount equal to— 
‘‘(i) such dollar amount, multiplied by 
‘‘(ii) the cost-of-living adjustment de-
termined under section 1(f)(3) for the cal-
endar year, determined by substituting 
‘‘calendar year 2013’’ for ‘‘calendar year 
1992’’ in subparagraph (B) thereof. 
‘‘(B) ROUNDING.—If any amount as in-
creased under subparagraph (A) is not a mul-
tiple of $1, such amount shall be rounded to the 
nearest multiple of $1.’’. 
(c) ALTERNATIVE FUELS PRODUCER EXCISE TAX.— 
(1) IN GENERAL.—Subchapter A of chapter 38 
of the Internal Revenue Code of 1986 is amended by 
inserting after section 4611 the following: 
‘‘SEC. 4611A. CERTAIN ALTERNATIVE FUELS. 
‘‘(a) GENERAL RULE.—There is hereby imposed a 
tax at the rate specified in subsection (b) on— 
‘‘(1) methanol, ethanol, and biodiesel produced 
in the United States by the producer thereof, and 
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‘‘(2) methanol, ethanol, and biodiesel, and any 
blended product thereof, entered into the United 
States for consumption, use, or warehousing. 
‘‘(b) RATE OF TAX.—The rate of the tax imposed by 
this section is— 
‘‘(1) $50 per metric ton (or portion thereof) of 
total life-cycle emissions of carbon dioxide, and 
‘‘(2) an equivalent amount per metric ton (or 
portion thereof) of total life-cycle emissions of any 
other greenhouse gas determined on a ratio of the 
amount such other greenhouse gas per metric ton as 
the amount of carbon dioxide per metric ton, 
in methanol, ethanol, and biodiesel, and any blended prod-
uct thereof, produced or entered into in the United States. 
For purposes of the preceding sentence, total life-cycle 
emissions of carbon dioxide and other greenhouse gases 
shall be determined by the Administrator of the Environ-
mental Protection Agency pursuant to section 4 of the Gas 
Tax Replacement Act of 2014. 
‘‘(c) PERSONS LIABLE FOR TAX.— 
‘‘(1) UNITED STATES PRODUCTION.—The tax 
imposed by subsection (a)(1) shall be paid by the 
producer of the product on which such tax is im-
posed. 
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‘‘(2) IMPORTED PRODUCTS.—The tax imposed 
by subsection (a)(2) shall be paid by the person en-
tering the product for consumption, use, or 
warehousing.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions for subchapter A of chapter 38 of the Internal 
Revenue Code of 1986 is amended by inserting after 
the item relating to section 4611 the following new 
item: 
‘‘Sec. 4611A. Certain alternative fuels.’’. 
(d) CREDITS
AND PAYMENTS
FOR NONTAXABLE 
USES.— 
(1) GASOLINE USED ON FARMS.—Section 6420 
of the Internal Revenue Code of 1986 is amended by 
inserting after subsection (g) the following: 
‘‘(h) SPECIAL RULE FOR CARBON DIOXIDE EQUIVA-
LENT RATE OF TAX.—For purposes of this section, a gal-
lon of gasoline refined from a barrel of crude oil or petro-
leum product on which tax was imposed under section 
4611 at the carbon dioxide equivalent rate under sub-
section (c)(1)(C) thereof and used for a purpose described 
in subsection (a)— 
‘‘(1) shall be treated as a gallon of gasoline to 
which this section applies, and 
‘‘(2) the rate at which tax was imposed under 
section 4611 with respect to such gallon shall be the 
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