I 
114TH CONGRESS 
1ST SESSION 
H. R. 309 
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 
JANUARY 13, 2015 
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 2015’’. 
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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 
2015.’’. 
(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 2015, 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 2014’’ 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 2015. 
‘‘(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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same fraction of so much of the tax imposed under 
section 4611 as is attributable to subsection 
(c)(1)(C) thereof on such barrel as the fraction of 
such gallon of gas is of the whole barrel.’’. 
(2) GASOLINE
USED
FOR
CERTAIN
NON-
HIGHWAY PURPOSES, ETC.—Section 6421 of the In-
ternal Revenue Code of 1986 is amended by redesig-
nating subsection (j) as subsection (k) and by insert-
ing after subsection (i) the following: 
‘‘(j) SPECIAL RULE FOR CARBON DIOXIDE EQUIVA-
LENT RATE OF TAX.—For purposes of this section, in the 
case of a gallon of gasoline refined from a barrel of crude 
oil or petroleum product on which tax was imposed under 
section 4611 at the carbon dioxide equivalent rate under 
subsection (c)(1)(C) thereof— 
‘‘(1) if such gallon is used for a purpose de-
scribed in subsection (a) or (b) or is sold for a pur-
pose described in subsection (c), such gallon 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 
same fraction of so much of the tax imposed under 
section 4611 as is attributable to subsection 
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(c)(1)(C) thereof on such barrel as the fraction of 
such gallon of gas is of the whole barrel.’’. 
(3) CREDIT FOR ALCOHOL FUEL, BIODIESEL, 
AND
ALTERNATIVE
FUEL
MIXTURES.—Section 
6426(a) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘and’’ at the end of paragraph 
(1), by striking the period at the end of paragraph 
(2) and inserting a comma, and by inserting after 
paragraph (2) the following: 
‘‘(3) against so much of the tax imposed by sec-
tion 4611 as is attributable to the carbon dioxide 
equivalent rate of tax under subsection (c)(1)(C) an 
amount equal to the credit described in subsection 
(c), determined on the same fraction of the amount 
of such tax as the number of gallons of diesel used 
by the taxpayer in producing any biodiesel mixture 
for sale or use in a trade or business of the tax-
payer, and 
‘‘(4) against the tax imposed by section 4611A 
an amount equal to the sum of the credits described 
in subsections (b), (c), and (e), determined on the 
same fraction of the amount of such tax as the num-
ber of gallons of alcohol, biodiesel, or alternative fuel 
used by the taxpayer in producing any fuel mixture 
of taxable fuel.’’. 
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(4) FUELS
NOT
USED
FOR
TAXABLE
PUR-
POSES.—Section 6427 of the Internal Revenue Code 
of 1986 is amended by redesignating subsection (p) 
as subsection (q) and by inserting after subsection 
(o) the following: 
‘‘(p) SPECIAL RULE FOR CARBON DIOXIDE EQUIVA-
LENT RATE.—For purposes of this section, in the case of 
a gallon of fuel 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 of tax under 
subsection (c)(1)(C) thereof, or produced from methanol, 
ethanol, or biodiesel on which tax was imposed under sec-
tion 4611A, if the sale or use of such fuel would give rise 
to a payment under this section but for the fact that such 
fuel was taxed under section 4611 or 4611A and not sec-
tion 4041 or 4081— 
‘‘(1) this section shall be applied as if such fuel 
had been taxed under section 4041 or 4081, and 
‘‘(2) the rate at which tax was imposed under 
section 4611 or 4611A with respect to such fuel 
shall be— 
‘‘(A) in the case of tax imposed under sec-
tion 4611(c)(1)(C), the same fraction of such 
tax on such barrel as the fraction of a gallon 
of such fuel is of the whole barrel, and 
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‘‘(B) in the case of tax imposed under sec-
tion 4611A, the same fraction of the amount of 
such tax as the amount of fuel giving rise to a 
payment under this section.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on January 1, 2015. 
SEC. 4. LIFE-CYCLE EMISSIONS. 
(a) CARBON DIOXIDE EMISSIONS REPORT.—Not 
later than the first January 1st occurring at least 1 year 
after the date of enactment of this Act, the Administrator 
shall transmit to the Internal Revenue Service and make 
public a report on the total life-cycle emissions of carbon 
dioxide for each covered transportation fuel, expressed in 
tons of carbon dioxide emissions per barrel of fuel or an 
appropriate alternate measure. Such report shall take into 
account the differences in carbon dioxide emissions per 
barrel of fuel across different regions and countries due 
to means of resource extraction and production, transpor-
tation, and other factors, with each covered transportation 
fuel being as regionally specific as determined by the Ad-
ministrator. 
(b) ADDITION
OF
COVERED
TRANSPORTATION 
FUEL.—The Administrator shall— 
(1) from time to time determine which trans-
portation fuels have achieved a sufficient share of 
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the on-road transportation fuel market to warrant 
being considered a covered transportation fuel, and 
(2) update the report transmitted under sub-
section (a), and transmit such updated report to 
Congress, with the specifications on the total life- 
cycle emissions of carbon dioxide and other green-
house gases for each fuel newly determined under 
paragraph (1) to be considered a covered transpor-
tation fuel. 
(c) DEFINITIONS.—In this section: 
(1) ADMINISTRATOR.—The term ‘‘Adminis-
trator’’ means the Administrator of the Environ-
mental Protection Agency. 
(2) BIOFUEL.—The term ‘‘biofuel’’ means the 
biofuel component of a transportation fuel. 
(3) COVERED
TRANSPORTATION
FUEL.—The 
term ‘‘covered transportation fuel’’ means gasoline, 
diesel fuel, biofuel, and any other fuel the Adminis-
trator determines has achieved a sufficient share of 
the on-road transportation fuel market to warrant 
regulation under this section. 
(4) GREENHOUSE GAS.—The term ‘‘greenhouse 
gas’’ has the same meaning given the term in sec-
tion 211(o)(1) of the Clean Air Act (42 U.S.C. 
7545(o)(1)). 
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(5) LIFE-CYCLE
EMISSIONS.—The term ‘‘life- 
cycle emissions’’ means emissions from all activities 
included in the production, transport, storage, and 
use of a fuel, including land use changes, means of 
resource extraction and production, transportation 
systems, and leakages. 
Æ 
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