shall have the authority to establish stricter requirements 
for the percentage of the compliance obligation for a year 
that must be met with permits of that year’s vintage, and 
to establish penalties for failure to comply. 
‘‘(b) EXPIRATION.—A carbon permit shall expire 
when— 
‘‘(1) it is surrendered to the Secretary under 
section 9904, 
‘‘(2) it has been held by a covered entity and 
has not been surrendered to the Secretary under sec-
tion 9904 within 18 months after the end of its vin-
tage year, or 
‘‘(3) the Secretary determines by regulation 
that expiration is necessary to ensure the authen-
ticity and integrity of carbon permits or the carbon 
permit tracking system. 
‘‘SEC. 9908. ENVIRONMENTAL JUSTICE. 
‘‘(a) IN GENERAL.—This chapter shall be imple-
mented to the extent practicable to ensure that reductions 
in carbon emissions are accompanied by commensurate re-
ductions in emissions of co-pollutants from fossil fuel com-
bustion that impact frontline communities. 
‘‘(b) REPORT ON AIR QUALITY METHODS DEVELOP-
MENT.—Not later than 1 year after the date of enactment 
of this section, the Administrator shall submit to Congress 
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a report detailing efforts to increase air quality monitoring 
deployment and technical assistance at the Federal, State, 
local, and tribal level. 
‘‘(c) AIR QUALITY MONITORING IN FRONTLINE COM-
MUNITIES.—The Administrator (or the Administrator’s 
delegate) is authorized to provide for trends monitoring 
of ambient air quality in frontline communities and moni-
toring of co-pollutant emissions from sources located in 
or near such communities that impact their pollution bur-
den. Not later than 3 years after the date of the enactment 
of this section, any information from such monitors shall 
be recorded and reported at the level of monitor and pol-
lutant, and made available to the public to support effec-
tive community participation in the making of environ-
mental policies. 
‘‘(d) ENVIRONMENTAL JUSTICE GUARANTEE.—In 
cases where co-pollutant emissions impacting frontline 
communities have not declined at a rate equal to the car-
bon dioxide emissions targets established in section 
9902(b)(2), the Administrator is authorized to implement 
or promulgate additional regulatory measures to ensure 
such reductions. 
‘‘(e) ENVIRONMENTAL JUSTICE REVIEW.—Not later 
than 4 years after the date of enactment of this section, 
and annually thereafter, the Administrator shall imple-
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ment an annual review to determine frontline commu-
nities, evaluate the effects of the enactment of this chapter 
on environmental justice, and recommend further correc-
tive measures if needed. 
‘‘(f) APPROPRIATIONS.—Out of any money in the 
Treasury not otherwise appropriated, there shall be appro-
priated such sums as are necessary to carry out the pur-
poses of this section, to remain available until expended. 
‘‘CHAPTER 102—HEALTHY CLIMATE 
DIVIDENDS 
‘‘Sec. 9911. Healthy Climate Trust Fund. 
‘‘Sec. 9912. Healthy Climate Dividend Payments. 
‘‘Sec. 9913. Transparency. 
‘‘SEC. 9911. HEALTHY CLIMATE TRUST FUND. 
‘‘(a) ESTABLISHMENT.—There is established in the 
Treasury of the United States a trust fund to be known 
as the ‘Healthy Climate Trust Fund’, consisting of such 
amounts as may be appropriated to such trust fund as 
provided for in this section. 
‘‘(b) TRANSFERS.— 
‘‘(1) PROCEED
AMOUNTS.—There are appro-
priated to the Healthy Climate Trust Fund amounts 
equivalent to funds received as proceeds under sec-
tion 9903. 
‘‘(2) PENALTY
AMOUNTS.—There are appro-
priated to the Healthy Climate Trust Fund amounts 
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equivalent to funds received as penalties under sec-
tion 9905. 
‘‘(c) EXPENDITURES.— 
‘‘(1) ADMINISTRATIVE EXPENSES.—Out of any 
amounts in the Treasury not otherwise appropriated, 
there shall be appropriated such sums as are nec-
essary to pay the administrative expenses necessary 
to carry out this chapter. 
‘‘(2) 
HEALTHY
CLIMATE
DIVIDEND
PAY-
MENTS.—Amounts in the Healthy Climate Trust 
Fund not used under paragraph (1) for any month 
shall be available for making Healthy Climate Divi-
dend Payments under section 9912. 
‘‘SEC. 9912. HEALTHY CLIMATE DIVIDEND PAYMENTS. 
‘‘(a) IN GENERAL.—For purposes of this section: 
‘‘(1) 
HEALTHY
CLIMATE
DIVIDEND
PAY-
MENT.—The term ‘Healthy Climate Dividend Pay-
ment’ means the individual pro rata share, as deter-
mined by the Secretary, of amounts available for any 
quarter in the Healthy Climate Trust Fund under 
section 9911(c)(2). The amounts so available for any 
quarter shall be equal to the proceeds from auctions 
conducted under section 9903 in the preceding cal-
endar quarter. 
‘‘(2) ELIGIBLE INDIVIDUAL.— 
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‘‘(A) IN GENERAL.—The term ‘eligible in-
dividual’ means, with respect to any quarter, 
any individual with a valid social security num-
ber (other than a nonresident alien individual) 
who is lawfully present in the United States for 
such quarter, as determined and verified by the 
Secretary in consultation with any other Fed-
eral entity the Secretary determines appro-
priate. 
‘‘(B) OPT OUT.—An individual may elect 
not to be treated as an eligible individual. 
‘‘(b) PAYMENT OF HEALTHY CLIMATE DIVIDEND.— 
From amounts made available under section 9911(c)(2), 
the Secretary shall make a Healthy Climate Dividend Pay-
ment not later than the end of the calendar quarter fol-
lowing the calendar quarter in which such amounts are 
appropriated to the Healthy Climate Trust Fund under 
section 9911 to each eligible individual for that quarter. 
Such payments shall be made by electronic means to the 
maximum extent practicable. 
‘‘(c) EXCLUSION FROM GROSS INCOME.—Gross in-
come shall not include any Healthy Climate Dividend paid 
under this section. 
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‘‘(d) REGULATIONS.—The Secretary shall prescribe 
such regulations and other guidance as may be necessary 
or appropriate to carry out this section. 
‘‘SEC. 9913. TRANSPARENCY. 
‘‘(a) REPORT TO CONGRESS.—Not later than June 
30, 2024, and at least annually thereafter, the Secretary 
shall transmit to Congress a report accounting for the dis-
position of amounts in the Healthy Climate Trust Fund 
in the previous calendar year. 
‘‘(b) HEALTHY CLIMATE TRUST FUND WEBSITE.— 
Not later than 90 days after the date of the enactment 
of this subtitle, the Secretary shall establish and maintain 
a website to provide the public with information on the 
disposition of any amounts in the Healthy Climate Trust 
Fund. 
‘‘CHAPTER 103—BORDER ADJUSTMENTS 
‘‘Sec. 9921. Carbon equivalency fee. 
‘‘Sec. 9922. Definitions. 
‘‘Sec. 9923. Sense of Congress. 
‘‘SEC. 9921. CARBON EQUIVALENCY FEE. 
‘‘(a) IMPORTS.—The Secretary shall impose carbon 
equivalency fees to be collected by the Commissioner re-
sponsible for U.S. Customs and Border Control on imports 
of carbon-intensive goods. The amount of the carbon 
equivalency fee shall be equal to the cost that domestic 
producers of a comparable carbon-intensive good incur as 
a result of— 
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‘‘(1) prices paid in the acquisition of carbon 
permits by covered entities under this subtitle, and 
‘‘(2) carbon equivalency fees paid by importers 
of carbon-intensive goods used in the production of 
the comparable carbon-intensive good. 
‘‘(b) PAYMENTS
TO EXPORTERS.—The Secretary 
shall pay without interest to entities exporting from the 
United States carbon-intensive goods produced in the 
United States. The amount of the payment shall be equal 
to the cost that domestic producers of the carbon-intensive 
good incur as a result of— 
‘‘(1) prices paid in the acquisition of carbon 
permits by covered entities under this subtitle, and 
‘‘(2) carbon equivalency fees paid by importers 
of carbon-intensive goods used in the production of 
the comparable carbon-intensive good. 
‘‘(c) EXPIRATION.—This section shall cease to have 
effect at such time as and to the extent that— 
‘‘(1) an international agreement requiring coun-
tries that emit greenhouse gases and produce car-
bon-intensive goods for export markets to adopt 
equivalent measures comes into effect, or 
‘‘(2) the country of export has implemented 
equivalent measures, as determined by the Sec-
retary, in consultation with the Secretary of State. 
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‘‘SEC. 9922. DEFINITIONS. 
‘‘In this chapter: 
‘‘(1) CARBON-INTENSIVE
GOOD.—The term 
‘carbon-intensive good’ means a good that, as identi-
fied by the Secretary, in consultation with the Ad-
ministrator, by rule— 
‘‘(A) is a primary product, or 
‘‘(B) is a manufactured item in which one 
or more primary products are inputs and the 
cost of production of which in the United States 
is significantly increased by reason of the re-
quirements under this subtitle. 
‘‘(2) PRIMARY PRODUCT.—The term ‘primary 
product’ means— 
‘‘(A) iron, steel, steel mill products (includ-
ing pipe and tube), aluminum, cement, glass 
(including flat, container, and specialty glass 
and fiberglass), pulp, paper, chemicals, or in-
dustrial ceramics, and 
‘‘(B) any other manufactured product that 
the Secretary, in consultation with the Adminis-
trator, determines— 
‘‘(i) is sold for purposes of further 
manufacture, and 
‘‘(ii) generates, in the course of the 
manufacture of the product, direct and in-
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direct greenhouse gas emissions that are 
comparable (on an emissions-per-dollar of 
output basis) to emissions generated in the 
manufacture or production of a primary 
product identified in subparagraph (A). 
‘‘(3) EQUIVALENT MEASURE.—The term ‘equiv-
alent measure’ means a tax, or other regulatory re-
quirement that imposes a cost, on manufacturers of 
carbon-intensive goods located outside the United 
States, by reason of greenhouse gas emissions in the 
production of such goods by such manufacturers, ap-
proximately equal to the cost imposed by this sub-
title on manufacturers of comparable carbon-inten-
sive goods located in the United States. 
‘‘SEC. 9923. SENSE OF CONGRESS. 
‘‘It is the sense of Congress that the United States 
should work proactively under the United Nations Frame-
work Convention on Climate Change and in other appro-
priate fora, to establish binding agreements committing all 
major greenhouse gas emitting countries and countries 
with globally competitive producers of carbon-intensive 
goods to contribute equitably to the reduction of global 
greenhouse gas emissions on a schedule and order of mag-
nitude necessary to stabilize the climate.’’. 
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(b) CLERICAL AMENDMENT.—The table of subtitles 
for the Internal Revenue Code of 1986 is amended by add-
ing at the end the following new item: 
‘‘Subtitle L. Auction of Carbon Permits and Distribution of Healthy Climate 
Dividends.’’. 
SEC. 4. NON-AUCTION GREENHOUSE GASES. 
(a) DEFINITIONS.—In this section: 
(1) The term ‘‘Administrator’’ means the Ad-
ministrator of the Environmental Protection Agency. 
(2) The term ‘‘non-auction greenhouse gas’’ re-
fers to the gases included on the list in effect under 
subsection (b). 
(b) LIST OF NON-AUCTION GREENHOUSE GASES.— 
(1) INITIAL LIST.—Not later than 2 years after 
the date of the enactment of this Act, the Adminis-
trator, by rule, shall finalize and publish a list 
that— 
(A) consists of the anthropogenically emit-
ted gases that are determined by the Adminis-
trator to contribute to global warming; and 
(B) excludes gases to the extent they are— 
(i) carbon dioxide emitted by the com-
bustion of a covered fuel (as such term is 
defined in section 9901 of the Internal 
Revenue Code of 1986, as added by section 
3(a) of this Act); or 
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