I 
118TH CONGRESS 
2D SESSION 
H. R. 8962 
To amend the Internal Revenue Code of 1986 to establish a methane border 
adjustment mechanism. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 9, 2024 
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’’. 
SECTION 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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