I 
118TH CONGRESS 
2D SESSION 
H. R. 9573 
To impose an assessment related to fossil fuel emissions, to establish the 
Polluters Pay Climate Fund, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 12, 2024 
Mr. NADLER (for himself, Ms. CHU, Ms. NORTON, Ms. TLAIB, Mr. JOHNSON 
of Georgia, Mr. CARSON, Mr. HUFFMAN, Ms. BALINT, Mr. JACKSON of 
North Carolina, Mrs. RAMIREZ, Mr. GRIJALVA, Ms. LEE of Pennsylvania, 
Ms. SCHAKOWSKY, Mrs. WATSON COLEMAN, Mr. GOLDMAN of New York, 
Mr. RASKIN, Ms. OCASIO-CORTEZ, and Ms. BUSH) introduced the fol-
lowing bill; which was referred to the Committee on Ways and Means, 
and in addition to the Committees on Transportation and Infrastructure, 
and 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 jurisdiction of the committee concerned 
A BILL 
To impose an assessment related to fossil fuel emissions, 
to establish the Polluters Pay Climate Fund, 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 ‘‘Polluters Pay Climate 
Fund Act of 2024’’. 
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SEC. 2. FINDINGS. 
Congress finds that— 
(1) climate change, resulting primarily from the 
combustion of fossil fuels, is an immediate, grave 
threat to the communities, environment, and econ-
omy of the United States; 
(2) severe consequences of climate change have 
already materialized in the United States, including 
rising sea levels, increasing temperatures, extreme 
weather events, flooding, heat waves, loss of bio-
diversity, and other climate change-driven ecosystem 
threats; 
(3) the Federal Government jointly with States 
and localities must develop and implement protective 
measures to counteract the adverse effects of climate 
change, protect communities, and build resilience to 
extreme weather; 
(4) the government response must include pro-
tections for communities that are most vulnerable to 
climate change impacts, especially communities of 
color, low-income communities, and Tribal and In-
digenous communities that are also more likely to 
have experienced systemic disinvestment and be 
overburdened by fossil fuel pollution; 
(5) the protective measures necessary to re-
spond to the adverse effects of climate change in the 
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United States will require trillions of dollars of new 
investment during the decade after the date of en-
actment of this Act; 
(6) climate change related extreme weather 
events, such as those described in paragraph (2), 
cost the United States at least $150,000,000,000 
each year and disproportionately affect underserved 
and overburdened communities, according to the 
Fifth National Climate Assessment; 
(7) the $100,000,000,000 each year that fossil 
fuel companies are collectively assessed for the Pol-
luters Pay Climate Fund established in this Act rep-
resents only a small portion of the total cost to the 
Federal Government to respond to climate change 
related extreme weather events and make needed cli-
mate change adaptation and resilience investments; 
(8) peer-reviewed research can now determine 
with great accuracy the share of carbon dioxide re-
leased into the atmosphere by the operations and 
products of specific fossil fuel companies, which is 
what informs the formulas to determine carbon diox-
ide emissions that are used in the amendments made 
by this Act; 
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(9) the fossil fuel industry has been aware of 
the central role that their product plays in causing 
climate change since before the year 2000; 
(10) the fossil fuel industry must now increase 
their contribution to government expenditures to 
protect the Nation from climate disaster; and 
(11) this Act and assessments under the 
amendments made by this Act are not intended— 
(A) to be a determination of fault; or 
(B) to have any impact on the ability of 
any person or other government to hold pol-
luters accountable for harms caused. 
SEC. 3. TAX RELATING TO CURRENT STOCK OF GREEN-
HOUSE GAS EMISSIONS. 
(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—Certain Fossil Fuel 
Emissions 
‘‘Sec. 4691. Imposition of tax. 
‘‘SEC. 4691. IMPOSITION OF TAX. 
‘‘(a) IMPOSITION.—Each assessable person shall pay 
to the Secretary not later than the applicable payment 
date a tax in an amount determined under subsection (b). 
‘‘(b) DETERMINATION OF AMOUNT.— 
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‘‘(1) IN GENERAL.—With respect to each as-
sessable person, the tax under this section shall be 
equal to an amount that bears the same ratio to 
$1,000,000,000,000 as— 
‘‘(A) the assessable person’s applicable 
share of covered carbon dioxide emissions taken 
into account under this section, bears to 
‘‘(B) the aggregate applicable shares of 
covered carbon dioxide emissions of all assess-
able persons taken into account under this sec-
tion. 
‘‘(2) 
DETERMINATION
OF
APPLICABLE 
SHARE.— 
‘‘(A) IN GENERAL.—The applicable share 
of covered carbon dioxide emissions taken into 
account under this section for any assessable 
person shall be the excess (if any) of— 
‘‘(i) the covered carbon dioxide emis-
sions attributable to such person (deter-
mined in metric tons), as determined by 
the Secretary based on product-related car-
bon dioxide emissions of such person, over 
‘‘(ii) 1,000,000,000 metric tons. 
‘‘(B) ADJUSTMENT.—The Secretary may 
adjust the amount determined under subpara-
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graph (A)(i) with respect to an assessable per-
son who is described in subsection (c)(3)(B)(ii) 
(or who is a successor in interest to a person 
described in such subsection) if such person es-
tablishes to the satisfaction of the Secretary 
that a portion of such amount was— 
‘‘(i) attributable to the extraction of 
crude oil by another assessable person who 
is described in subsection (c)(3)(B)(i) (or a 
successor in interest to a person described 
in such subsection), and 
‘‘(ii) taken into account in deter-
mining such amount for such other assess-
able person. 
‘‘(c) ASSESSABLE PERSON.—For purposes of this 
section— 
‘‘(1) IN GENERAL.—The term ‘assessable per-
son’ means— 
‘‘(A) any person that is described in para-
graph (2), or 
‘‘(B) any successor in interest to a person 
described in paragraph (2). 
‘‘(2) PERSON
DESCRIBED.—A person is de-
scribed in this paragraph if such person— 
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‘‘(A) is a United States person or is en-
gaged in a trade or business within the United 
States during the period beginning on the date 
of the enactment of this Act and ending on De-
cember 31, 2024, 
‘‘(B) during any part of the covered pe-
riod, was engaged in the trade or business of— 
‘‘(i) extracting any fossil fuel, or 
‘‘(ii) refining any crude oil, and 
‘‘(C) is determined by the Secretary to be 
responsible for more than 1,000,000,000 metric 
tons of covered carbon dioxide emissions. 
‘‘(3) CONTROLLED GROUPS.— 
‘‘(A) IN GENERAL.—For purposes of this 
subsection, all persons treated as a single em-
ployer under subsection (a) or (b) of section 52 
or subsection (m) or (o) of section 414 shall be 
treated as a single assessable person. 
‘‘(B) INCLUSION
OF
FOREIGN
CORPORA-
TIONS.—For purposes of subparagraph (A), in 
applying subsections (a) and (b) of section 52 
to this section, section 1563 shall be applied 
without regard to subsection (b)(2)(C) thereof. 
‘‘(4) JOINT AND SEVERAL LIABILITY.—If more 
than one person is liable for payment of the tax 
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under subsection (a) with respect to a single assess-
able person by reason of the application of para-
graph (3), all such persons shall be jointly and sev-
erally liable for payment of such tax. 
‘‘(d) OTHER DEFINITIONS AND RULES.—For pur-
poses of this section— 
‘‘(1) APPLICABLE PAYMENT DATE.—The term 
‘applicable payment date’ means September 30, 
2025. 
‘‘(2) COVERED CARBON DIOXIDE EMISSIONS.— 
The term ‘covered carbon dioxide emissions’ means, 
with respect to any person, the total quantity of car-
bon dioxide released into the atmosphere during the 
covered period by reason such person engaging in 
the trade or business of extracting fossil fuels or of 
refining crude oil. 
‘‘(3) COVERED PERIOD.—The term ‘covered pe-
riod’ means the period that— 
‘‘(A) began on January 1, 2000, and 
‘‘(B) ended on December 31, 2022. 
‘‘(4) FOSSIL
FUEL.—The term ‘fossil fuel’ 
means coal, crude oil, and fuel gases. 
‘‘(5) COAL.—The term ‘coal’ means anthracite, 
bituminous, subbituminous, and lignite coal. 
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‘‘(6) CRUDE OIL.—The term ‘crude oil’ means 
oil or petroleum of any kind and in any form, includ-
ing bitumen, oil sands, heavy oil, conventional and 
unconventional oil, shale oil, natural gas liquids, con-
densates, and related fossil fuel liquids. 
‘‘(7) FUEL
GASES.—The term ‘fuel gases’ 
means natural gas, associated natural gas, conven-
tional and unconventional gas, shale gas, and related 
methane gas production. 
‘‘(8) DETERMINATION
OF
CARBON
DIOXIDE 
EMISSIONS.—In determining the amount of carbon 
dioxide emissions with respect to any assessable per-
son— 
‘‘(A) an amount equivalent to 942.5 metric 
tons of carbon dioxide shall be treated as re-
leased for every 1,000,000 pounds of coal, 
‘‘(B) an amount equivalent to 432,180 
metric tons of carbon dioxide shall be treated as 
released for every 1,000,000 barrels of crude 
oil, and 
‘‘(C) an amount equivalent to 54,440 met-
ric tons of carbon dioxide shall be treated as re-
leased for every 1,000,000,000 cubic feet of fuel 
gases. 
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‘‘(e) ELECTION TO PAY LIABILITY
IN INSTALL-
MENTS.— 
‘‘(1) IN GENERAL.—An assessable person may 
elect to pay the tax under this section in 9 annual 
installments of the following amounts: 
‘‘(A) 20 percent of the tax under this sec-
tion in the case of the first installment. 
‘‘(B) 10 percent of the tax under this sec-
tion in each of the following 8 installments. 
‘‘(2) DATE FOR PAYMENT OF INSTALLMENTS.— 
If an election is made under paragraph (1), the first 
installment shall be paid on the applicable payment 
date and each succeeding installment shall be paid 
on the same date as the applicable payment date for 
each calendar year following the calendar year with 
respect to which the preceding installment was 
made. 
‘‘(3) ACCELERATION OF PAYMENT.—If there is 
an addition to tax for failure to timely pay any in-
stallment required under this subsection, a liquida-
tion or sale of substantially all the assets of the as-
sessable person (including in a title 11 or similar 
case), a cessation of business by the assessable per-
son, or any similar circumstance, then the unpaid 
portion of all remaining installments shall be due on 
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the date of such event (or in the case of a title 11 
or similar case, the day before the petition is filed). 
The preceding sentence shall not apply to the sale 
of substantially all the assets of an assessable person 
to a buyer if such buyer enters into an agreement 
with the Secretary under which such buyer is liable 
for the remaining installments due under this sub-
section in the same manner as if such buyer were 
the assessable person. 
‘‘(4) PRORATION OF DEFICIENCY TO INSTALL-
MENTS.—If an election is made under paragraph (1) 
to pay the tax under this section in installments and 
a deficiency has been assessed with respect to such 
tax, the deficiency shall be prorated to the install-
ments payable under paragraph (1). The part of the 
deficiency so prorated to any installment the date 
for payment of which has not arrived shall be col-
lected at the same time as, and as a part of, such 
installment. The part of the deficiency so prorated 
to any installment the date for payment of which 
has arrived shall be paid upon notice and demand 
from the Secretary. This subsection shall not apply 
if the deficiency is due to negligence, to intentional 
disregard of rules and regulations, or to fraud with 
intent to evade tax. 
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‘‘(5) ELECTION.—Any election under paragraph 
(1) shall be made not later than the applicable pay-
ment date and shall be made in such manner as the 
Secretary shall provide. 
‘‘(6) INSTALLMENTS NOT TO PREVENT CREDIT 
OR REFUND OF OVERPAYMENTS OR INCREASE ESTI-
MATED TAXES.—If an election is made under para-
graph (1) to pay the tax under this section in in-
stallments— 
‘‘(A) no installment of such tax shall— 
‘‘(i) in the case of a request for credit 
or refund, be taken into account as a li-
ability for purposes of determining whether 
an overpayment exists for purposes of sec-
tion 6402 before the date on which such 
installment is due, or 
‘‘(ii) for purposes of sections 6425, 
6654, and 6655, be treated as a tax im-
posed by section 1, section 11, or sub-
chapter L of chapter 1, and 
‘‘(B) the first sentence of section 6403 
shall not apply with respect to any such install-
ment. 
‘‘(f) REGULATIONS.—Not later than 18 months after 
the date of enactment of this section, the Secretary shall 
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promulgate such regulations as are necessary to carry out 
this section.’’. 
(b) NO DEDUCTION.—Section 275(a) of such Code 
is amended by adding at the end the following new para-
graph: 
‘‘(7) Taxes imposed by subchapter E of chapter 
38.’’. 
(c) CLERICAL AMENDMENT.—The table of sub-
chapters for chapter 38 of such Code is amended by add-
ing at the end the following new item: 
‘‘SUBCHAPTER E—CERTAIN FOSSIL FUEL EMISSIONS’’. 
SEC. 4. POLLUTERS PAY CLIMATE FUND. 
(a) ESTABLISHMENT OF FUND.— 
(1) IN GENERAL.—Subchapter A of chapter 98 
of the Internal Revenue Code of 1986 is amended by 
adding at the end the following new section: 
‘‘SEC. 9512. POLLUTERS PAY CLIMATE FUND. 
‘‘(a) ESTABLISHMENT.—There is established in the 
Treasury of the United States a trust fund, to be known 
as the ‘Polluters Pay Climate Fund’ (hereinafter in this 
section referred to as the ‘Fund’), consisting of amounts 
as are appropriated or credited to such Trust Fund as 
provided in this section and section 9602(b). 
‘‘(b) TRANSFERS.—There are hereby appropriated to 
the Fund amounts equivalent to the taxes received in the 
Treasury under section 4691. 
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‘‘(c) EXPENDITURES FROM THE FUND.—Amounts in 
the fund shall be available, as provided in appropriations 
Acts, for the purpose of making expenditures to carry out 
the purposes of section 4(b) of the Polluters Pay Climate 
Fund Act of 2024.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions for subchapter A of chapter 98 of such Code 
is amended by adding at the end the following new 
item: 
‘‘Sec. 9512. Polluters Pay Climate Fund.’’. 
(b) EXPENDITURES FROM FUND.— 
(1) DEFINITIONS.—In this subsection: 
(A) ADMINISTRATOR.—The term ‘‘Admin-
istrator’’ means the Administrator of the Envi-
ronmental Protection Agency. 
(B) ENVIRONMENTAL
JUSTICE
COMMU-
NITY.—The term ‘‘environmental justice com-
munity’’ means a community with significant 
representation of communities of color, low-in-
come communities, or Tribal and Indigenous 
communities that experiences, or is at risk of 
experiencing, higher or more adverse human 
health or environmental effects as compared to 
other communities. 
(C) FUND.—The term ‘‘Fund’’ means the 
Polluters Pay Climate Fund established under 
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section 9512 of the Internal Revenue Code of 
1986. 
(D) SECRETARY.—The term ‘‘Secretary’’ 
means the Secretary of the Treasury. 
(2) USE OF FUND AMOUNTS.— 
(A) GENERAL PURPOSES.—The Secretary, 
in consultation with the Administrator and the 
heads of other relevant agencies, shall use 
amounts in the Fund for the purposes of fur-
thering a comprehensive and equitable Federal 
response to climate change impacts through in-
vestments in climate resilience, adaptation, dis-
aster response, and environmental justice, in-
cluding— 
(i) climate-related disaster recovery 
and mitigation support; 
(ii) climate change adaptation support 
through climate and disaster planning as-
sistance, funding for climate-resilient infra-
structure, and improved climate and ex-
treme weather prediction capabilities; 
(iii) initiatives that increase the cli-
mate resilience of energy systems through 
energy efficiency, grid resilience, and dis-
tributed electricity generation initiatives; 
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(iv) initiatives that increase the cli-
mate resilience of the food system through 
support for climate-resilient farming prac-
tices; 
(v) initiatives that increase the cli-
mate resilience of the transportation sys-
tem through planning and climate change 
adaptation support; 
(vi) initiatives that increase the cli-
mate resilience of ecosystems through con-
servation, restoration, and wildfire man-
agement activities; 
(vii) support for climate-related public 
health initiatives, including efforts to ad-
dress extreme heat; and 
(viii) initiatives that increase the cli-
mate resiliency of drinking water and 
stormwater infrastructure. 
(B) SPECIFIED
USES.—In carrying out 
subparagraph (A) each fiscal year and to the 
greatest extent practicable, the Secretary shall 
use amounts in the Fund— 
(i) to provide funding of not less than 
$15,000,000,000 to the Federal Emer-
gency Management Agency for response 
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and resilience programs of the Federal 
Emergency Management Agency to ad-
dress climate-related disasters, including 
hurricanes, flooding, extreme heat, and 
wildfires, 
of 
which 
not 
less 
than 
$3,000,000,000 shall be used to carry out 
the Building Resilient Infrastructure and 
Communities program under section 203 
of the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act (42 U.S.C. 
5133); and 
(ii) to provide funding of not less than 
$6,000,000,000 for grants and technical 
assistance under section 138 of the Clean 
Air Act (42 U.S.C. 7438), subject to the 
condition that the Administrator may de-
termine the appropriate amounts to be 
used for those grants and that technical 
assistance. 
(C) 
ENVIRONMENTAL
JUSTICE
SET 
ASIDE.—Of the amounts appropriated from the 
Fund each fiscal year, 40 percent shall be used 
for investments that benefit environmental jus-
tice communities. 
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(D) SELECTION.—For the purpose of de-
termining how to award amounts appropriated 
from the Fund in excess of the amounts re-
quired to be used under subparagraph (B), the 
Secretary, in coordination with the Adminis-
trator and the heads of other relevant agencies, 
shall establish selection criteria, which shall give 
the highest priority to projects or other activi-
ties that are most impactful in achieving the 
purposes described in subparagraph (A), as de-
termined by the Secretary, in coordination with 
the Administrator and the heads of other rel-
evant agencies. 
SEC. 5. AVAILABILITY OF REMEDIES. 
(a) IN GENERAL.—Nothing in this Act or the amend-
ments made by this Act shall be construed to relieve any 
person from liability at common law or under any State 
or Federal law. 
(b) EFFECT
ON CLAIMS RELATED
TO CLIMATE 
CHANGE.—Nothing in this Act or the amendments made 
by this Act, the Clean Air Act (42 U.S.C. 7401 et seq.), 
or Federal common law preempts, displaces, or restricts 
any right or remedy of any person, State, unit of local 
government, or Tribal government under any State or 
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local law (including common law) relating to an allegation 
of— 
(1) deception concerning the effects of fossil 
fuel on climate change; 
(2) damage or injury resulting from the role of 
fossil fuel in contributing to climate change; or 
(3) the failure to avoid damage or injury re-
lated to climate change, including claims for nui-
sance, trespass, design defect, negligence, failure to 
warn, or deceptive or unfair practices and claims for 
injunctive, declaratory, monetary, or other relief. 
(c) RULE OF CONSTRUCTION.—Nothing in this Act 
or the amendments made by this Act shall— 
(1) require the repayment of any funds made 
available from the Polluters Pay Climate Fund es-
tablished under section 9512 of the Internal Rev-
enue Code of 1986 and used pursuant to section 
4(b) as a result of any award of damages imposed 
by a court of law relating to any causes of action or 
allegations described in subsection (b); or 
(2) permit the use of any such funds— 
(A) as evidence in such an action or allega-
tion; or 
(B) to offset any award of damages in 
such an action or allegation. 
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SEC. 6. NON-PREEMPTION OF AUTHORITIES. 
Nothing in this Act or the amendments made by this 
Act shall be construed to preempt or supersede any State 
or local law, regulation, policy, or program, including laws, 
regulations, polices, and programs that— 
(1) limit, set, or enforce standards for green-
house gas emissions; 
(2) monitor, report, and keep records of green-
house gas emissions; 
(3) provide cost recovery for climate adaptation, 
mitigation, or resilience; or 
(4) conduct or support investigations. 
Æ 
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