‘‘(B) PROOF
OF
EXPORT
REQUIRED.— 
Rules similar to the rules of section 4221(b) 
shall apply for purposes of subparagraph (A). 
‘‘(2) CREDIT OR REFUND WHERE TAX PAID.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), if— 
‘‘(i) tax under subsection (a) was paid 
with respect to any taxable carbon sub-
stance, and 
‘‘(ii)(I) such substance was exported 
by any person, or 
‘‘(II) such substance was used as a 
material in the manufacture or production 
of a taxable carbon substance which was 
exported by any person and which, at the 
time of export, was a taxable carbon sub-
stance, 
credit or refund (without interest) of such tax 
shall be allowed or made to the person who paid 
such tax. 
‘‘(B) CONDITION
TO
ALLOWANCE.—No 
credit or refund shall be allowed or made under 
subparagraph (A) unless the person who paid 
the tax establishes that he— 
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‘‘(i) has repaid or agreed to repay the 
amount of the tax to the person who ex-
ported the taxable carbon substance, or 
‘‘(ii) has obtained the written consent 
of such exporter to the allowance of the 
credit or the making of the refund. 
‘‘(C) 
REFUNDS
DIRECTLY
TO
EX-
PORTER.—The Secretary shall provide, in regu-
lations, the circumstances under which a credit 
or refund (without interest) of the tax under 
subsection (a) shall be allowed or made to the 
person who exported the taxable carbon sub-
stance, where— 
‘‘(i) the person who paid the tax 
waives his claim to the amount of such 
credit or refund, and 
‘‘(ii) the person exporting the taxable 
carbon substance provides such informa-
tion as the Secretary may require in such 
regulations. 
‘‘SEC. 4692. REFUNDS OR CREDITS. 
‘‘(a) SEQUESTERED CARBON.—Under regulations 
prescribed by the Secretary, if— 
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‘‘(1) a person uses a taxable carbon substance 
as a feedstock so that the carbon associated with 
such substance will not be emitted, or 
‘‘(2) a person captures and sequesters the car-
bon in a taxable carbon substance, 
then an amount equal to the amount of tax in effect under 
section 4691(b) with respect to such substance for the cal-
endar year in which such use begins shall be allowed as 
a credit or refund (without interest) to such person in the 
same manner as if it were an overpayment of tax imposed 
by section 4691. 
‘‘(b) PREVIOUSLY
TAXED
CARBON
SUBSTANCES 
USED TO MAKE ANOTHER TAXABLE CARBON SUB-
STANCE.—Under regulations prescribed by the Secretary, 
if— 
‘‘(1) a tax under section 4691 was paid with re-
spect to any taxable carbon substance, and 
‘‘(2) such substance was used by any person in 
the manufacture or production of any other sub-
stance which is a taxable carbon substance, 
then an amount equal to the tax so paid shall be allowed 
as a credit or refund (without interest) to such person in 
the same manner as if it were an overpayment of tax im-
posed by subsection (a). In any case to which this para-
graph applies, the amount of any such credit or refund 
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shall not exceed the amount of tax imposed by subsection 
(a) on the other taxable fuel manufactured or produced 
(or which would have been imposed by such subsection on 
such other fuel but for subsection (c)). 
‘‘SEC. 4693. BORDER ADJUSTMENTS. 
‘‘(a) IMPORTS.—The Secretary shall impose a carbon 
equivalency fee on imports of carbon-intensive goods that 
shall be equivalent to the cost that domestic producers of 
comparable carbon-intensive goods incur as a result of— 
‘‘(1) taxes paid by manufacturers, producers, 
and importers of taxable carbon substances under 
this section, and 
‘‘(2) carbon equivalency fees paid by importers 
of carbon intensive goods used in the production of 
the comparable carbon intensive goods in question. 
‘‘(b) EXPORTS.—Notwithstanding the limitations of 
section 4692, the Secretary shall allow as a credit or re-
fund (without interest) to the exporter of a carbon-inten-
sive good produced in the United States in the same man-
ner as if it were an overpayment of tax imposed by section 
4691 an amount equivalent to the cost that domestic pro-
ducers of such carbon intensive goods incur as a result 
of— 
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‘‘(1) taxes paid by manufacturers, producers, 
and importers of taxable carbon substances under 
this section, and 
‘‘(2) carbon equivalency fees paid by importers 
of carbon intensive goods used in the production of 
the comparable carbon intensive goods in question. 
‘‘(c) EXPIRATION.—This section shall cease to have 
effect at such time as and to the extent that— 
‘‘(1)(A) an international agreement requiring 
countries that emit greenhouse gases and produce 
carbon intensive goods for international markets to 
adopt equivalent measures comes into effect, or 
‘‘(B) the country of export has implemented 
equivalent measures, and 
‘‘(2) the actions provided for by subsections (a) 
and (b) are no longer appropriate. 
‘‘SEC. 4694. DEFINITIONS AND SPECIAL RULES. 
‘‘(a) DEFINITIONS.—For purposes of this sub-
chapter— 
‘‘(1) TAXABLE CARBON SUBSTANCE.—The term 
‘taxable carbon substance’ means— 
‘‘(A) coal (including lignite and peat), 
‘‘(B) petroleum and any petroleum product 
(as defined in section 4612(a)(3)), and 
‘‘(C) natural gas, 
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which is extracted, manufactured, or produced in the 
United States or entered into the United States for 
consumption, use, or warehousing. 
‘‘(2) UNITED
STATES.—The term ‘United 
States’ has the meaning given such term by section 
4612(a)(4). 
‘‘(3) IMPORTER.—The term ‘importer’ means 
the person entering the taxable carbon substance for 
consumption, use, or warehousing. 
‘‘(4) TON.—The term ‘ton’ means metric tons. 
In the case of any taxable carbon substance which 
is a gas, the term ‘ton’ means the amount of such 
gas in cubic feet which is the equivalent of a metric 
ton on a molecular weight basis. 
‘‘(5) CARBON-INTENSIVE
GOOD.—The term 
‘carbon-intensive good’ means a good that (as identi-
fied by the Secretary 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 this subchapter. 
‘‘(6) PRIMARY PRODUCT.—The term ‘primary 
product’ means— 
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