son, or any similar circumstance, then the unpaid 
portion of all remaining installments shall be due on 
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 
VerDate Sep 11 2014 
17:51 Mar 07, 2025
Jkt 059200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H1135.IH
H1135
ssavage on LAPJG3WLY3PROD with BILLS
disregard of rules and regulations, or to fraud with 
intent to evade tax. 
‘‘(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. 
VerDate Sep 11 2014 
17:51 Mar 07, 2025
Jkt 059200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H1135.IH
H1135
ssavage on LAPJG3WLY3PROD with BILLS
‘‘(f) REGULATIONS.—Not later than 18 months after 
the date of enactment of this section, the Secretary shall 
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. POLLUTER PAYS CLIMATE CHANGE 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). 
VerDate Sep 11 2014 
17:51 Mar 07, 2025
Jkt 059200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H1135.IH
H1135
ssavage on LAPJG3WLY3PROD with BILLS
‘‘(b) TRANSFERS.—There are hereby appropriated to 
the Fund amounts equivalent to the taxes received in the 
Treasury under section 4691. 
‘‘(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 2025.’’. 
(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 
VerDate Sep 11 2014 
17:51 Mar 07, 2025
Jkt 059200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H1135.IH
H1135
ssavage on LAPJG3WLY3PROD with BILLS
health or environmental effects as compared to 
other communities. 
(C) FUND.—The term ‘‘Fund’’ means the 
Polluters Pay Climate Change Fund established 
under 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; 
VerDate Sep 11 2014 
17:51 Mar 07, 2025
Jkt 059200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H1135.IH
H1135
ssavage on LAPJG3WLY3PROD with BILLS
(iii) initiatives that increase the cli-
mate resilience of energy systems through 
energy efficiency, grid resilience, and dis-
tributed electricity generation initiatives; 
(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 
VerDate Sep 11 2014 
17:51 Mar 07, 2025
Jkt 059200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H1135.IH
H1135
ssavage on LAPJG3WLY3PROD with BILLS
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 
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. 
VerDate Sep 11 2014 
17:51 Mar 07, 2025
Jkt 059200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H1135.IH
H1135
ssavage on LAPJG3WLY3PROD with BILLS
(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. 
(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 
VerDate Sep 11 2014 
17:51 Mar 07, 2025
Jkt 059200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H1135.IH
H1135
ssavage on LAPJG3WLY3PROD with BILLS
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 
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 Polluter Pays Climate Change 
Fund established under section 9512 of the Internal 
Revenue 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— 
VerDate Sep 11 2014 
17:51 Mar 07, 2025
Jkt 059200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
E:\BILLS\H1135.IH
H1135
ssavage on LAPJG3WLY3PROD with BILLS
(A) as evidence in such an action or allega-
tion; or 
(B) to offset any award of damages in 
such an action or allegation. 
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 
VerDate Sep 11 2014 
17:51 Mar 07, 2025
Jkt 059200
PO 00000
Frm 00020
Fmt 6652
Sfmt 6301
E:\BILLS\H1135.IH
H1135
ssavage on LAPJG3WLY3PROD with BILLS