I 
119TH CONGRESS 
1ST SESSION 
H. R. 480 
To amend the Internal Revenue Code of 1986 to establish a methane border 
adjustment mechanism. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 16, 2025 
Ms. BROWNLEY introduced the following bill; which was referred to the 
Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to establish 
a methane border adjustment mechanism. 
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 ‘‘Methane Border Ad-
justment Mechanism Act’’. 
SEC. 2. FINDINGS. 
Congress finds the following: 
(1) Methane is a powerful greenhouse gas, with 
about 80 times the warming power of carbon dioxide 
on a 20-year time horizon. 
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(2) Rigorous estimates suggest that at least 25 
percent of the rise in global temperatures since the 
industrial revolution is due to methane emissions. 
(3) Public health experts believe that methane 
is a key contributor to the formation of ground level 
ozone and particulate pollution, which causes a wide 
range of cardiovascular and lung-related diseases. 
(4) These facts suggest that methane is a 
threat to human, animal, and plant life and health. 
(5) The intended purpose of enacting a meth-
ane border adjustment mechanism (MBAM) is to 
conserve exhaustible natural resources by preventing 
emissions and is made effective in conjunction with 
regulations and charges on methane emissions from 
domestic oil and natural gas producers under section 
136 of the Clean Air Act (42 U.S.C. 7436). 
(6) Highly cost-effective methods of reducing 
methane emissions—such as MBAMs—have been 
well-studied and are ready for implementation. 
(7) Research suggests that while the impact of 
an MBAM on the price of fossil fuels would likely 
be minimal, it could have a significant impact on 
methane emissions. 
(8) By working with countries that are major 
importers of oil and gas to enact similar MBAMs, in 
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partnership with the European Union, having al-
ready enacted its own border measure, the United 
States Government can both help strengthen the 
market for exports of clean United States gas and 
encourage other oil and gas producing countries to 
reduce their methane emissions. 
SEC. 3. ESTABLISHMENT OF METHANE BORDER ADJUST-
MENT MECHANISM. 
(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—Methane Border Adjustment 
Mechanism 
‘‘Sec. 4691. Methane border adjustment mechanism. 
‘‘SEC. 4691. METHANE BORDER ADJUSTMENT MECHANISM. 
‘‘(a) IN GENERAL.—There is hereby imposed a tax 
on any methane adjustment substance sold or used by the 
importer thereof. 
‘‘(b) AMOUNT OF TAX.— 
‘‘(1) IN GENERAL.—The amount of tax imposed 
under subsection (a) with respect to any methane 
adjustment substance shall be the amount that bears 
the same ratio to the total methane emissions charge 
for the country in which such substance was pro-
duced or extracted (determined for the second cal-
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endar year preceding the calendar year of such sale 
or use) as— 
‘‘(A) the volume of such substance, bears 
to 
‘‘(B) the total volume of such substance 
produced or extracted in such country (deter-
mined for such second preceding calendar year). 
‘‘(2) TOTAL METHANE EMISSIONS CHARGE.— 
For purposes of this section, the term ‘total methane 
emissions charge’ means, with respect to any foreign 
country, the total amount of charges with respect to 
facilities located in such country which would be im-
posed under section 136 of the Clean Air Act (42 
U.S.C. 7436) if— 
‘‘(A) such facilities were located in the 
United States, and 
‘‘(B) subsection (c) of such section were 
applied without regard to ‘that reports more 
than 25,000 metric tons of carbon dioxide’ and 
all that follows. 
Except as otherwise provided by the Secretary in 
paragraph (4), the total methane emissions charge 
with respect to any foreign country shall be deter-
mined separately with respect to each methane ad-
justment substance. 
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‘‘(3) NATURAL
GAS
MEASURED
BY
ENERGY 
CONTENT.—In the case of natural gas, subpara-
graphs (A) and (B) of paragraph (1) shall each be 
applied by substituting ‘energy content’ for ‘volume’. 
‘‘(4) 
METHANE
ADJUSTMENT
SUBSTANCES 
PRODUCED OR EXTRACTED IN MORE THAN 1 COUN-
TRY.—The Secretary shall provide rules for deter-
mining the tax imposed under paragraph (1) with 
respect to a substance which was produced or ex-
tracted in more than 1 country which determines 
such tax on the basis of the proportion of the pro-
duction or extraction that occurred in such country. 
‘‘(c) METHANE ADJUSTMENT SUBSTANCE.— 
‘‘(1) IN GENERAL.—The term ‘methane adjust-
ment substance’ means petroleum and natural gas. 
‘‘(2) RECOMMENDATION OF ADDITIONAL SUB-
STANCES.— 
‘‘(A) IN GENERAL.—Not later than 2 years 
after the date of the enactment of this Act, and 
each 2 years thereafter, the Secretary shall sub-
mit a written report to Congress regarding 
whether additional substances that are reliant 
on oil and natural gas as a feedstock in indus-
trial processes, or otherwise have notable em-
bodied methane emissions, should be added to 
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the list of methane adjustment substances sub-
ject to this section. 
‘‘(B) CONSULTATION.—In assessing sub-
stances to recommend for inclusion under this 
paragraph, the Secretary shall consult with the 
United States International Trade Commission 
and International Trade Administration on 
whether domestic producers, including specific 
domestic facilities, have lower embodied meth-
ane emissions than producers in other coun-
tries. 
‘‘(C) ANALYSIS.—Each report under this 
paragraph shall be accompanied by an analysis 
prepared by the Secretary, after consultation 
with the United States International Trade 
Commission, of— 
‘‘(i) the effect of the proposed expan-
sion of the methane border adjustment 
mechanism to include additional sub-
stances, and 
‘‘(ii) the economic, employment, and 
environmental costs in the United States if 
the expansion does not include such addi-
tional substances. 
‘‘(d) ESTIMATES.— 
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‘‘(1) IN GENERAL.—The total methane emis-
sions charge, and the amount described in sub-
section (b)(1)(B), with respect to any foreign coun-
try for any calendar year shall be determined by the 
Secretary on the basis of publicly available informa-
tion. 
‘‘(2) 
ESTABLISHMENT
OF
INTERNATIONAL 
BODY TO COLLECT AND REPORT INFORMATION.— 
The Secretary, in consultation with the governments 
of countries that are major importers and exporters 
of methane adjustment substances, shall facilitate 
the establishment of an international body respon-
sible for providing for international consultations for 
the establishment of interoperable standards, estab-
lishing a multi-stage certification process to track 
emissions throughout supply chains, and collecting 
and reporting data related to methane emissions. 
Standards developed under the preceding sentence 
shall be updated not less frequently than every 2 
years. 
‘‘(e) ALTERNATIVE TAX BASED ON SUPPLY CHAIN 
EMISSIONS.— 
‘‘(1) IN GENERAL.—In the case of any methane 
adjustment substance which meets the requirements 
of paragraph (2), the Secretary shall establish an al-
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