I 
111TH CONGRESS 
1ST SESSION H. R. 1862 
To cap the emissions of greenhouse gases through a requirement to purchase 
carbon permits, to distribute the proceeds of such purchases to eligible 
individuals, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 1, 2009 
Mr. VAN
HOLLEN
(for himself, Mr. THOMPSON
of California, Mr. 
BLUMENAUER, and Mr. DOGGETT) 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 provi-
sions as fall within the jurisdiction of the committee concerned 
A BILL 
To cap the emissions of greenhouse gases through a require-
ment to purchase carbon permits, to distribute the pro-
ceeds of such purchases to eligible individuals, 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 ‘‘Cap and Dividend Act 
of 2009’’. 
VerDate Nov 24 2008 
01:23 Apr 03, 2009
Jkt 079200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H1862.IH
H1862
jbell on PROD1PC69 with BILLS
SEC. 2. AUCTION OF CARBON PERMITS AND DISTRIBUTION 
OF CONSUMER DIVIDENDS. 
(a) IN GENERAL.—The Internal Revenue Code of 
1986 is amended by adding at the end the following new 
subtitle: 
‘‘Subtitle 
L—Auction 
of 
Carbon 
Permits 
and 
Distribution 
of 
Consumer Dividends 
‘‘Chapter 101. Cap and Dividend Program Rules. 
‘‘Chapter 102. Consumer Dividends. 
‘‘Chapter 103. Border Adjustments. 
‘‘CHAPTER 101—CAP AND DIVIDEND 
PROGRAM RULES 
‘‘Sec. 9901. Definitions. 
‘‘Sec. 9902. Carbon permits. 
‘‘Sec. 9903. Auctions. 
‘‘Sec. 9904. Compliance obligation. 
‘‘Sec. 9905. Penalty for noncompliance. 
‘‘Sec. 9906. Carbon capture and sequestration. 
‘‘Sec. 9907. Trading. 
‘‘Sec. 9908. Banking and borrowing. 
‘‘SEC. 9901. DEFINITIONS. 
‘‘For purposes of this subtitle: 
‘‘(1) ADMINISTRATOR.—The term ‘Adminis-
trator’ means the Administrator of the Environ-
mental Protection Agency. 
‘‘(2) CARBON PERMIT.—The term ‘carbon per-
mit’ means a carbon permit established by the Sec-
retary under section 9902(a). 
VerDate Nov 24 2008 
01:23 Apr 03, 2009
Jkt 079200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H1862.IH
H1862
jbell on PROD1PC69 with BILLS
‘‘(3) COVERED ENTITY.—The term ‘covered en-
tity’ means a person who makes the first sale in 
United States markets of a covered fuel, as deter-
mined by the Secretary, in consultation with the Ad-
ministrator. 
‘‘(4) COVERED FUEL.—The term ‘covered fuel’ 
means oil, natural gas, coal, or any other product 
derived therefrom for use as a combustible fuel of-
fered for sale in United States markets. 
‘‘(5) FAIR
MARKET
VALUE.—The term ‘fair 
market value’ means the average auction price for 
carbon permits during the 4 quarters immediately 
preceding a failure to surrender, when required 
under section 9904, the required number of carbon 
permits under such section. 
‘‘(6) STATE.—The term ‘State’ means the sev-
eral States, the District of Columbia, the Common-
wealth of Puerto Rico, the United States Virgin Is-
lands, Guam, American Samoa, the Commonwealth 
of the Northern Mariana Islands, and any other 
commonwealth, territory, or possession of the United 
States. 
‘‘(7) VINTAGE YEAR.—The term ‘vintage year’ 
means the calendar year for which a carbon permit 
is established under section 9902. 
VerDate Nov 24 2008 
01:23 Apr 03, 2009
Jkt 079200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H1862.IH
H1862
jbell on PROD1PC69 with BILLS
‘‘SEC. 9902. CARBON PERMITS. 
‘‘(a) IN GENERAL.—The Secretary, in consultation 
with the Administrator, shall establish a separate quantity 
of carbon permits for calendar year 2012 and each cal-
endar year thereafter, as set forth under subsection (b). 
‘‘(b) EMISSIONS REDUCTION SCHEDULE.— 
‘‘(1) IN
GENERAL.—The quantity of carbon 
permits established by the Secretary, in consultation 
with the Administrator, under subsection (a) shall 
represent equal, pro rata increments that meet the 
targets described in paragraph (2). 
‘‘(2) TARGETS.— 
‘‘(A) INITIAL
TARGET.—The quantity of 
carbon permits established for 2012 shall be 
equal to the number of metric tons of carbon 
dioxide emitted in the United States in 2005. 
‘‘(B) DECADAL
TARGETS.—The quantity 
of carbon permits established for— 
‘‘(i) 2020 shall be equal to 25 percent 
less than the number of metric tons of car-
bon dioxide emitted in the United States in 
2005; 
‘‘(ii) 2030 shall be equal to 45 percent 
less than the number of metric tons of car-
bon dioxide emitted in the United States in 
2005; 
VerDate Nov 24 2008 
01:23 Apr 03, 2009
Jkt 079200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H1862.IH
H1862
jbell on PROD1PC69 with BILLS
‘‘(iii) 2040 shall be equal to 65 per-
cent less than the number of metric tons 
of carbon dioxide emitted in the United 
States in 2005; and 
‘‘(iv) 2050 shall be equal to 85 per-
cent less than the number of metric tons 
of carbon dioxide emitted in the United 
States in 2005. 
‘‘(3) REPORT.—The Secretary shall report to 
Congress if the Secretary, after consultation with 
the Administrator, determines the emissions reduc-
tions targets under this subsection should be revised 
in order to avert catastrophic climate impacts. Such 
report shall include recommended revisions to the 
existing emissions reduction schedule and the basis 
for those recommendations. 
‘‘(c) IDENTIFICATION
NUMBERS.—The Secretary 
shall assign to each carbon permit established under sub-
section (a) a unique identification number that includes 
the vintage year for that carbon permit. 
‘‘(d) LEGAL STATUS OF CARBON PERMITS.— 
‘‘(1) IN GENERAL.—A carbon permit does not 
constitute a property right. 
‘‘(2) TERMINATION OR LIMITATION.—Nothing 
in this subtitle or any other provision of law shall be 
VerDate Nov 24 2008 
01:23 Apr 03, 2009
Jkt 079200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H1862.IH
H1862
jbell on PROD1PC69 with BILLS
construed to limit or alter the authority of the 
United States, including the Secretary acting pursu-
ant to statutory authority, to terminate or limit a 
carbon permit. 
‘‘(3) OTHER PROVISIONS UNAFFECTED.—Noth-
ing in this subtitle relating to carbon permits issued 
under this section shall affect the application of any 
other provision of law to a covered entity, or the re-
sponsibility for a covered entity to comply with any 
such provision of law. Regional and State green-
house gas initiatives are not preempted by this sub-
title. 
‘‘(e) REGULATIONS.—Not later than 24 months after 
the date of enactment of this subtitle, the Secretary shall 
promulgate regulations to carry out the provisions of this 
subtitle. 
‘‘SEC. 9903. AUCTIONS. 
‘‘(a) PERIODIC AUCTIONS.—The Secretary shall con-
duct periodic public auctions of carbon permits established 
under section 9902(a). The Secretary shall conduct at 
least 4 such auctions in each year for which carbon per-
mits are established. 
‘‘(b) AUCTION RULES.—The Secretary shall— 
‘‘(1) limit auction participation only to owners 
of covered entities; 
VerDate Nov 24 2008 
01:23 Apr 03, 2009
Jkt 079200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H1862.IH
H1862
jbell on PROD1PC69 with BILLS
‘‘(2) establish a limit on the amount of carbon 
permits that can be purchased by the owner of a sin-
gle entity at each auction and an aggregate limit on 
the total amount of permits that can be held by the 
owner of a single entity at any one time that— 
‘‘(A) reflects anticipated sector and partici-
pant demand; 
‘‘(B) prevents speculation, manipulation, 
or hoarding of permits; and 
‘‘(C) does not interfere with normal mar-
ket competition; and 
‘‘(3) have the authority to set a minimum per-
mit price at auction. 
‘‘SEC. 9904. COMPLIANCE OBLIGATION. 
‘‘(a) IN GENERAL.—Not later than April 1, 2013, 
and April 1 of each year thereafter, the owner of a covered 
entity shall surrender to the Secretary a quantity of car-
bon permits at least as great as the number of metric tons 
of carbon dioxide that the Secretary, in consultation with 
the Administrator, determines would be emitted by the 
combustion of covered fuels with respect to which the cov-
ered entity made the first sale in United States markets 
during the previous calendar year. 
‘‘(b) EXEMPTION.—The owner of a covered entity 
shall not have to surrender a carbon permit for the sale 
VerDate Nov 24 2008 
01:23 Apr 03, 2009
Jkt 079200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H1862.IH
H1862
jbell on PROD1PC69 with BILLS
of a covered fuel consumed for a non-emitting use, as de-
fined and verified by the Secretary in consultation with 
the Administrator, unless such covered fuel is sold to a 
person issued carbon permits under section 9906. 
‘‘SEC. 9905. PENALTY FOR NONCOMPLIANCE. 
‘‘(a) IN GENERAL.—The owner of any covered entity 
that fails for any year to surrender, by the deadline de-
scribed in section 9904, one or more of the carbon permits 
due pursuant to such section shall be liable for payment 
to the Secretary of a penalty in the amount described in 
subsection (b). 
‘‘(b) AMOUNT.—The amount of a penalty required to 
be paid under subsection (a) shall be equal to the product 
obtained by multiplying— 
‘‘(1) the number of carbon permits that the 
owner failed to surrender by the deadline; by 
‘‘(2) 3 times the fair market value of carbon 
permits issued for emissions occurring in the cal-
endar year for which the carbon permits were due. 
‘‘(c) TIMING.—A penalty required under this section 
shall be immediately due and payable to the Secretary, 
without demand, in accordance with regulations promul-
gated by the Secretary, which shall be issued not later 
than 2 years after the date of enactment of this subtitle. 
VerDate Nov 24 2008 
01:23 Apr 03, 2009
Jkt 079200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H1862.IH
H1862
jbell on PROD1PC69 with BILLS
‘‘(d) NO EFFECT ON LIABILITY.—A penalty due and 
payable by the owner of a covered entity under this section 
shall not diminish the liability of the owner for any fine, 
penalty, or assessment against the owner for the same vio-
lation under any other provision of law. 
‘‘SEC. 9906. CARBON CAPTURE AND SEQUESTRATION. 
‘‘The Secretary shall issue, to any person who the 
Secretary, in consultation with the Administrator, deter-
mines has safely and verifiably captured and sequestered 
carbon dioxide from the combustion of covered fuels in the 
United States, carbon permits, in addition to the quantity 
of permits established under section 9902(a), in an 
amount equivalent to the number of metric tons of carbon 
dioxide so captured and sequestered. 
‘‘SEC. 9907. TRADING. 
‘‘(a) PERMITTED TRANSACTIONS.—The lawful holder 
of a carbon permit may— 
‘‘(1) hold the carbon permit, subject to the lim-
its established by the Secretary under section 
9903(b)(2); 
‘‘(2) sell, exchange, or transfer the carbon per-
mit to the owner of a covered entity consistent with 
the limits established by the Secretary under section 
9903(b)(2); or 
VerDate Nov 24 2008 
01:23 Apr 03, 2009
Jkt 079200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H1862.IH
H1862
jbell on PROD1PC69 with BILLS
‘‘(3) request that the Secretary retire the car-
bon permit. 
‘‘(b) EFFECTIVENESS OF CARBON PERMIT TRANS-
FERS.—No transfer of a carbon permit shall be effective 
until a written certification of the transfer, signed by a 
responsible official of the transferor, is received and re-
corded by the Secretary in accordance with regulations 
promulgated under section 9902(e). 
‘‘(c) CARBON PERMIT TRACKING SYSTEM.—The reg-
ulations promulgated under section 9902(e) shall include 
a system for issuing, recording, holding, and tracking car-
bon permits that shall specify all necessary procedures and 
requirements for an orderly and competitive functioning 
of the carbon permit system. Such regulations shall pro-
vide for appropriate publication of the information in the 
system on the Internet. 
‘‘SEC. 9908. BANKING AND BORROWING. 
‘‘(a) BANKING.—A carbon permit may be used to 
meet the compliance obligation requirements of section 
9904 for emissions in— 
‘‘(1) the vintage year for the carbon permit; or 
‘‘(2) any calendar year subsequent to the vin-
tage year for the carbon permit. 
‘‘(b) EXPIRATION.—A carbon permit shall not expire 
unless— 
VerDate Nov 24 2008 
01:23 Apr 03, 2009
Jkt 079200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H1862.IH
H1862
jbell on PROD1PC69 with BILLS
‘‘(1) it is surrendered to the Secretary under 
section 9904 or section 9907(a)(3); or 
‘‘(2) 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. 
‘‘(c) BORROWING FUTURE VINTAGE YEAR CARBON 
PERMITS.—If the auction price for carbon permits in-
creases by more than 100 percent above the average auc-
tion price for carbon permits during the preceding two 
years (or, if before the third year for which auctions are 
conducted, the average auction price for carbon permits 
during the preceding auctions), the Secretary shall auction 
as many additional carbon permits as are necessary to sta-
bilize the auction price, not to exceed 8 percent of the total 
amount of carbon permits otherwise available at that auc-
tion. Any carbon permits made available under this sub-
section shall result in an equivalent reduction in the aggre-
gate amount of carbon permits made available in vintage 
years 2030 through 2050 as set forth in section 9902, and 
the Secretary shall reduce the number of carbon permits 
by an equal percentage in each of those vintage years. 
‘‘CHAPTER 102—CONSUMER DIVIDENDS 
‘‘Sec. 9911. Healthy Climate Trust Fund. 
‘‘Sec. 9912. Consumer Dividend payment. 
‘‘Sec. 9913. Transparency. 
VerDate Nov 24 2008 
02:11 Apr 03, 2009
Jkt 079200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6211
E:\BILLS\H1862.IH
H1862
jbell on PROD1PC69 with BILLS
‘‘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 
equivalent to funds received as penalties under sec-
tion 9905. 
‘‘(c) EXPENDITURES.— 
‘‘(1) 
ADMINISTRATIVE
EXPENSES.—Such 
amounts as may be necessary from the Healthy Cli-
mate Trust Fund shall be available to pay the ad-
ministrative expenses necessary to carry out this sec-
tion for each month, but not exceeding 0.50 percent 
of the amounts appropriated to such trust fund 
under subsection (b) in such month. 
‘‘(2) 
CONSUMER
DIVIDEND
PAYMENTS.— 
Amounts in the Healthy Climate Trust Fund not 
used under paragraph (1) for any month shall be 
VerDate Nov 24 2008 
01:23 Apr 03, 2009
Jkt 079200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H1862.IH
H1862
jbell on PROD1PC69 with BILLS
available for making Consumer Dividend payments 
under section 9912. 
‘‘SEC. 9912. CONSUMER DIVIDEND PAYMENTS. 
‘‘(a) IN GENERAL.—For purposes of this section: 
‘‘(1) CONSUMER
DIVIDEND
PAYMENT.—The 
term ‘Consumer Dividend payment’ means the indi-
vidual pro-rata share, as determined by the Sec-
retary, of amounts available for any month in the 
Healthy 
Climate 
Trust 
Fund 
under 
section 
9911(c)(2). For purposes of the preceding sentence, 
the amounts available for any month shall be the 
fraction of the total amount made available from an 
auction conducted under section 9903— 
‘‘(A) the numerator of which is 1, and 
‘‘(B) the denominator of which is the num-
ber of months in the period beginning with the 
month in which such auction is conducted and 
ending with the month before the month in 
which the next such auction is scheduled to be 
conducted. 
‘‘(2) ELIGIBLE INDIVIDUAL.—The term ‘eligible 
individual’ means, with respect to any month, any 
individual with a valid social security number (other 
than a nonresident alien individual) who is lawfully 
present in the United States for such month, as de-
VerDate Nov 24 2008 
01:23 Apr 03, 2009
Jkt 079200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H1862.IH
H1862
jbell on PROD1PC69 with BILLS
termined and verified by the Secretary in consulta-
tion with any other Federal entity the Secretary de-
termines appropriate. 
‘‘(b) PAYMENT
OF CONSUMER DIVIDEND.—From 
amounts made available under section 9911(c)(2), the 
Secretary shall make a Consumer Dividend payment not 
later than the end of the month after the month in which 
such amounts are appropriated to the Healthy Climate 
Trust Fund under section 9911 to each individual who 
is an eligible individual for that month. 
‘‘(c) 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 Feb-
ruary 1, 2013, and at least annually thereafter, the Sec-
retary shall transmit to Congress a report accounting for 
the disposition 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. 
VerDate Nov 24 2008 
01:23 Apr 03, 2009
Jkt 079200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H1862.IH
H1862
jbell on PROD1PC69 with BILLS
‘‘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— 
‘‘(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 persons 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 
VerDate Nov 24 2008 
01:23 Apr 03, 2009
Jkt 079200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H1862.IH
H1862
jbell on PROD1PC69 with BILLS
‘‘(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. 
‘‘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. 
VerDate Nov 24 2008 
01:23 Apr 03, 2009
Jkt 079200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H1862.IH
H1862
jbell on PROD1PC69 with BILLS
‘‘(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-
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-
VerDate Nov 24 2008 
01:23 Apr 03, 2009
Jkt 079200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H1862.IH
H1862
jbell on PROD1PC69 with BILLS
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.’’. 
(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 Consumer 
Dividends.’’. 
SEC. 3. DISCLOSURE OF INFORMATION. 
(a) LIMITED DISCLOSURE OF IDENTITY.—Subsection 
(l) of section 6103 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new para-
graph: 
‘‘(21) LIMITED DISCLOSURE OF IDENTITY IN-
FORMATION
RELATING
TO
CONSUMER
DIVIDEND 
PAYMENTS.— 
VerDate Nov 24 2008 
01:23 Apr 03, 2009
Jkt 079200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H1862.IH
H1862
jbell on PROD1PC69 with BILLS
‘‘(A) DEPARTMENT OF THE TREASURY.— 
Individual identity information shall, without 
written request, be open to inspection by or dis-
closure to officers and employees of the Depart-
ment of the Treasury whose official duties re-
quire such inspection or disclosure for purposes 
of section 9912. 
‘‘(B) COMMISSIONER
OF
SOCIAL
SECU-
RITY.—The Commissioner of Social Security 
shall, on written request, disclose to officers 
and employees of the Department of the Treas-
ury individual identity information which has 
been disclosed to the Social Security Adminis-
tration as provided by paragraph (1) or (5). 
‘‘(C) RESTRICTION ON DISCLOSURE.—In-
formation disclosed under this paragraph shall 
be disclosed only for purposes of, and to the ex-
tent necessary in, carrying out section 9912.’’. 
(b) 
CONFORMING
AMENDMENTS.—Section 
6103(p)(3)(A) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘or (18)’’ and inserting ‘‘, (18), or 
(21)’’. 
VerDate Nov 24 2008 
01:23 Apr 03, 2009
Jkt 079200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
E:\BILLS\H1862.IH
H1862
jbell on PROD1PC69 with BILLS