I 
118TH CONGRESS 
1ST SESSION H. R. 6622 
To amend the Internal Revenue Code of 1986 to create a carbon border 
adjustment based on carbon intensity, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 6, 2023 
Ms. DELBENE (for herself, Mr. BEYER, Ms. CASTOR of Florida, and Mr. 
BERA) introduced the following bill; which was referred to the Committee 
on Ways and Means, and in addition to the Committee on Energy and 
Commerce, for a period to be subsequently determined by the Speaker, 
in each case for consideration of such provisions as fall within the juris-
diction of the committee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to create 
a carbon border adjustment based on carbon intensity, 
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 ‘‘Clean Competition 
Act’’. 
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SEC. 2. CARBON INTENSITY CHARGE. 
(a) IN GENERAL.—Chapter 38 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new subchapter: 
‘‘Subchapter E—Carbon Intensity Charge 
‘‘Sec. 4691. Calculation of carbon intensity. 
‘‘Sec. 4692. Imposition of carbon intensity charge. 
‘‘Sec. 4693. Rebate. 
‘‘Sec. 4694. Definitions. 
‘‘SEC. 4691. CALCULATION OF CARBON INTENSITY. 
‘‘(a) REPORTING REQUIREMENTS.—Not later than 
June 30, 2026, and annually thereafter, any covered enti-
ty shall, for each eligible facility operated by such entity, 
report to the Secretary (and, for purposes of the informa-
tion described in paragraphs (2) and (3), the Adminis-
trator) with respect to the following: 
‘‘(1) Any information required to be reported to 
the Administrator under the Greenhouse Gas Re-
porting Program (or which would be required to be 
reported notwithstanding any other provision of law 
prohibiting the implementation of or use of funds for 
such requirements) for the preceding calendar year. 
‘‘(2) The total amount of electricity used at 
such facility during the preceding calendar year, in-
cluding— 
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‘‘(A) whether such electricity was provided 
through the electric grid or a dedicated genera-
tion source, 
‘‘(B) the terms of any power purchase 
agreements with respect to such facility, and 
‘‘(C) with respect to any electricity which 
was not provided through the electric grid, the 
greenhouse gas emissions associated with the 
production of such electricity, provided that 
such emissions are not reported pursuant to 
paragraph (1). 
‘‘(3) The total weight (expressed in tons) of 
each covered primary good produced at such facility 
during the preceding calendar year. 
‘‘(b) CALCULATION.— 
‘‘(1) CARBON INTENSITY.— 
‘‘(A) ELIGIBLE
FACILITY.—For purposes 
of this subchapter, for each calendar year, the 
carbon intensity with respect to any eligible fa-
cility shall be an amount equal to the quotient 
of— 
‘‘(i) the covered emissions (as deter-
mined under paragraph (2)) with respect 
to such facility, divided by 
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‘‘(ii) the total weight (expressed in 
tons) of covered primary goods produced at 
such facility during the preceding calendar 
year. 
‘‘(B) COVERED NATIONAL INDUSTRY.— 
‘‘(i) IN
GENERAL.—For purposes of 
this subchapter, the carbon intensity with 
respect to any covered national industry 
shall be an amount (as determined by the 
Secretary) equal to the quotient of— 
‘‘(I) an amount equal to the sum 
of the covered emissions (as deter-
mined under paragraph (2)) with re-
spect to all eligible facilities which 
produce covered primary goods which 
are included within such industry for 
calendar year 2025, divided by 
‘‘(II) the total weight (expressed 
in tons) of covered primary goods 
within such industry which are pro-
duced at all such eligible facilities dur-
ing such year. 
‘‘(ii) DETERMINATION.—For purposes 
of this subchapter, the Secretary (in co-
ordination with the relevant parties) may 
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determine which types of eligible facilities 
(and any related covered primary goods) 
are included or excluded within a covered 
national industry, provided that such de-
termination— 
‘‘(I) facilitates a fair comparison 
of carbon intensities across similar eli-
gible facilities (based on a comparison 
of the material inputs and outputs of 
such facilities), and 
‘‘(II) does not meaningfully re-
duce the scope of greenhouse gas 
emissions covered by this subchapter. 
‘‘(iii) EXCLUDED FACILITIES.—In the 
case of any eligible facility which, pursuant 
to clause (ii), is excluded from a covered 
national industry and is not included in 
any other covered national industry, such 
facility shall be deemed to not be included 
in any covered national industry. 
‘‘(C) PETITION FOR SPECIFIC GOODS.— 
‘‘(i) IN GENERAL.—In the case of any 
covered national industry which produces 
more than 1 covered primary good, a cov-
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ered entity may file a petition with the 
Secretary to— 
‘‘(I) determine the carbon inten-
sity with respect to a specific covered 
primary good, and 
‘‘(II) determine a classification 
for defining such covered primary 
good for purposes of this subchapter, 
such as— 
‘‘(aa) the applicable 6-digit 
subheading of the Harmonized 
Tariff Schedule of the United 
States, 
‘‘(bb) the relevant produc-
tion process, 
‘‘(cc) a set of material char-
acteristics, or 
‘‘(dd) any combination of 
the methods for classification de-
scribed in items (aa) through 
(cc). 
‘‘(ii) REVIEW.—With respect to any 
covered primary good which is included in 
a petition described in clause (i), the Sec-
retary (in coordination with the Adminis-
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trator and the Secretary of Energy) shall 
approve such petition if— 
‘‘(I) the chemical, physical, or 
mechanical production processes for 
such good are substantially different 
as compared to other covered primary 
goods produced within the same cov-
ered national industry, 
‘‘(II) the properties of such good 
are distinct such that its uses cannot 
be easily replaced by other covered 
primary goods produced within the 
same covered national industry, and 
‘‘(III) the carbon intensity deter-
mined with respect to such good is at 
least 25 percent greater than the car-
bon intensity determined for other 
covered primary goods produced with-
in the same covered national industry. 
‘‘(iii) RECALCULATION.—In the case 
of any petition described in clause (i) 
which is approved by the Secretary pursu-
ant to clause (ii), the Secretary (in coordi-
nation with the Administrator) shall rede-
termine the carbon intensity with respect 
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to the covered national industry which in-
cludes production of the covered primary 
good which is the subject of such petition 
by excluding any covered emissions associ-
ated with the production of such good for 
purposes of the determination made under 
subparagraph (B) for such industry. 
‘‘(iv) GOODS-LEVEL
DATA.—In the 
case of any petition described in clause (i) 
which is approved by the Secretary pursu-
ant to clause (ii), the Secretary (in coordi-
nation with the Administrator) shall use a 
methodology for determining the carbon in-
tensity of the covered primary good (as de-
termined using the eligible facility informa-
tion reported under subsection (a)), and 
shall publish the methodology and the re-
sults of such determination, in a manner 
which— 
‘‘(I) is compatible with existing 
Federal carbon accounting rules and 
standards, 
‘‘(II) includes the related chem-
ical, physical, or mechanical produc-
tion processes responsible for dif-
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ferences in carbon intensity and cov-
ered emissions, and 
‘‘(III) prioritizes ease of adminis-
tration and compliance. 
‘‘(D) DETERMINATION.—Any determina-
tion of carbon intensity under this paragraph 
shall be made by the Secretary in coordination 
with the Administrator and the Secretary of 
Energy. 
‘‘(2) COVERED EMISSIONS.— 
‘‘(A) IN GENERAL.—For purposes of this 
subsection, for each calendar year, the amount 
of covered emissions with respect to any eligible 
facility shall be an amount (as determined by 
the Secretary, in coordination with the Admin-
istrator) equal to— 
‘‘(i) the amount equal to the sum of— 
‘‘(I) the total greenhouse gas 
emissions associated with the produc-
tion of covered primary goods at such 
facility during the preceding calendar 
year (as reported pursuant to sub-
section (a)), plus 
‘‘(II) the total greenhouse gas 
emissions associated with any elec-
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tricity used at such facility for the 
production of such goods during the 
preceding calendar year, minus 
‘‘(ii) the total greenhouse gas emis-
sions which are captured and disposed of 
in secure geological storage (in compliance 
with the regulations established under sec-
tion 45Q(f)(2)) during the preceding cal-
endar year. 
‘‘(B) DIRECT
AIR
CAPTURE.—For pur-
poses of subparagraph (A)(ii), in the case of 
any greenhouse gas emissions which are cap-
tured directly from the ambient air, the oper-
ator of the facility which captured such emis-
sions may apportion such emissions amongst 
any eligible facilities which are under common 
control of such operator. 
‘‘(C) 
EMISSIONS
FOR
ELECTRICITY 
USED.— 
‘‘(i) IN
GENERAL.—For purposes of 
subparagraph (A)(i)(II), the amount of 
greenhouse gas emissions associated with 
electricity provided through the electric 
grid shall be determined based on the aver-
age carbon intensity for the regional grid 
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in which the eligible facility is located for 
the preceding calendar year. 
‘‘(ii) EXCEPTION.—In the case of an 
eligible facility which is subject to a power 
purchase agreement (or its foreign equiva-
lent) which guarantees that any electricity 
provided under such agreement is gen-
erated not less than 15 minutes prior to 
use by such facility and within the same 
regional transmission zone (or its foreign 
equivalent) as such facility— 
‘‘(I) clause (i) shall not apply, 
and 
‘‘(II) the amount of greenhouse 
gas emissions associated with such 
electricity shall be determined based 
on the average carbon intensity of the 
electricity provided under such agree-
ment. 
‘‘(3) IMPORTED GOODS.— 
‘‘(A) IN
GENERAL.—In the case of any 
covered primary good which is imported into 
the United States, the carbon intensity with re-
spect to such good shall be determined by the 
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Secretary (in coordination with the relevant 
parties) based on— 
‘‘(i) the carbon intensity of the gen-
eral economy of the country of origin of 
such good, or 
‘‘(ii) if the Secretary (in coordination 
with the relevant parties) determines that 
transparent, verifiable, and reliable infor-
mation is available with respect to any cov-
ered national industry in the country of or-
igin of such good and that such country of 
origin is a transparent market economy in 
which inter-firm resource shuffling is un-
likely to occur, the carbon intensity of the 
covered national industry in such country 
which includes production of such good. 
‘‘(B) PETITION.— 
‘‘(i) IN GENERAL.—In the case of any 
entity which imports a covered primary 
good for which the carbon intensity can be 
determined under subparagraph (A)(ii), 
such entity may file a petition with the 
Secretary to determine the charge under 
section 4692, if any, based on the average 
carbon intensity with respect to the pro-
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duction of such good by the manufacturer 
within the country of origin. 
‘‘(ii) AGGREGATION RULE.—For pur-
poses of this subparagraph, the average 
carbon intensity with respect to the pro-
duction of a covered primary good shall be 
determined based upon greenhouse gas 
emission and production data from all fa-
cilities which produce such good which are 
under common control of the manufacturer 
of such good, including any subsidiary, 
parent company, or joint venture of such 
manufacturer within the country of origin. 
‘‘(iii) DATA PROVISION.—In the case 
of an entity which files a petition described 
in clause (i), such entity shall provide the 
Secretary with an environmental product 
declaration containing— 
‘‘(I) any information which would 
otherwise be required to be reported 
under subsection (a) if the facilities 
which produced the covered primary 
good to which the petition applies 
were subject to the reporting require-
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