I 
115TH CONGRESS 
1ST SESSION H. R. 3420 
To amend the Internal Revenue Code of 1986 to provide for carbon dioxide 
and other greenhouse gas emission fees, reduce the rate of the corporate 
income tax, provide tax credits to workers, deliver additional benefits 
to retired and disabled Americans, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 26, 2017 
Mr. BLUMENAUER (for himself and Mr. CICILLINE) introduced the following 
bill; which was referred to the Committee on Ways and Means, and in 
addition to the Committees on Transportation and Infrastructure, Vet-
erans’ Affairs, Energy and Commerce, and Education and the Workforce, 
for a period to be subsequently determined by the Speaker, in each case 
for consideration of such provisions as fall within the jurisdiction of the 
committee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to provide 
for carbon dioxide and other greenhouse gas emission 
fees, reduce the rate of the corporate income tax, provide 
tax credits to workers, deliver additional benefits to re-
tired and disabled Americans, 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 ‘‘American Opportunity 
Carbon Fee Act of 2017’’. 
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TITLE I—CARBON DIOXIDE AND 
OTHER 
GREENHOUSE 
GAS 
EMISSION FEES 
SEC. 101. CARBON DIOXIDE AND OTHER GREENHOUSE GAS 
EMISSION FEES. 
(a) IN GENERAL.—Chapter 38 of the Internal Rev-
enue Code of 1986 is amended by adding at the end there-
of the following new subchapter: 
‘‘Subchapter E—Carbon Dioxide and Other 
Greenhouse Gas Emission Fees 
‘‘Sec. 4691. Fee for carbon dioxide emissions. 
‘‘Sec. 4692. Fee on fluorinated greenhouse gases. 
‘‘Sec. 4693. Fee for other greenhouse gas emissions. 
‘‘Sec. 4694. Associated emissions. 
‘‘Sec. 4695. Border adjustments for energy-intensive manufactured goods. 
‘‘Sec. 4696. Definitions and other rules. 
‘‘SEC. 4691. FEE FOR CARBON DIOXIDE EMISSIONS. 
‘‘(a) IN GENERAL.— 
‘‘(1) FOSSIL FUEL PRODUCTS PRODUCING CAR-
BON EMISSIONS.— 
‘‘(A) IN GENERAL.—There is hereby im-
posed a fee in an amount equal to the applica-
ble amount at the rate specified in subpara-
graph (B) on— 
‘‘(i) coal— 
‘‘(I) removed from any mine in 
the United States, or 
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‘‘(II) entered into the United 
States 
for 
consumption, 
use, 
or 
warehousing, 
‘‘(ii) petroleum products— 
‘‘(I) removed from any refinery, 
‘‘(II) removed from any terminal, 
or 
‘‘(III) entered into the United 
States 
for 
consumption, 
use, 
or 
warehousing, and 
‘‘(iii) natural gas— 
‘‘(I) entered into any processor, 
or 
‘‘(II) entered into the United 
States 
for 
consumption, 
use, 
or 
warehousing. 
‘‘(B) RATE.—The rate specified in this 
subparagraph with respect to any product de-
scribed in subparagraph (A) is an amount equal 
to the applicable amount per ton of carbon di-
oxide that would be emitted through the com-
bustion of such product (as determined by the 
Secretary, in consultation with the Secretary of 
Energy and the Administrator of the Environ-
mental Protection Agency). 
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‘‘(2) EMISSIONS
ATTRIBUTABLE
TO
OTHER 
SUBSTANCES.—There is hereby imposed a fee in an 
amount equal to the applicable amount per ton of 
carbon dioxide emitted— 
‘‘(A) from any facility which— 
‘‘(i) is required to report emissions, or 
to which emissions are attributed, under 
subpart A of part 98 of title 40, Code of 
Federal Regulations, as in effect on the 
date of the enactment of the American Op-
portunity Carbon Fee Act of 2017, and 
‘‘(ii) emitted not less than 25,000 
tons of carbon dioxide emissions during the 
previous calendar year, and 
‘‘(B) by reason of the combustion or proc-
essing of any product other than coal, petro-
leum products, and natural gas. 
‘‘(b) APPLICABLE AMOUNT.— 
‘‘(1) IN GENERAL.—For purposes of this part, 
the applicable amount is— 
‘‘(A) for calendar year 2018, $49, 
‘‘(B) for any calendar year following a year 
which is not a national emissions target attain-
ment year, the sum of— 
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‘‘(i) the product of the amount in ef-
fect under this subparagraph for the pre-
ceding calendar year and 102 percent, and 
‘‘(ii) the inflation adjustment amount 
determined under paragraph (2), and 
‘‘(C) for any calendar year following a year 
which is a national emissions target attainment 
year, the sum of— 
‘‘(i) the amount in effect under this 
subparagraph for the preceding calendar 
year, and 
‘‘(ii) the inflation adjustment amount 
determined under paragraph (2). 
‘‘(2) INFLATION ADJUSTMENT AMOUNT.— 
‘‘(A) IN GENERAL.—The inflation adjust-
ment amount for any calendar year shall be an 
amount (not less than zero) equal to the prod-
uct of— 
‘‘(i) the amount determined under 
paragraph (1)(B)(i) or (1)(C)(i), as appli-
cable, for such year, and 
‘‘(ii) the percentage by which the CPI 
for the preceding calendar year exceeds the 
CPI for the second preceding calendar 
year. 
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‘‘(B) CPI.—Rules similar to the rules of 
paragraphs (4) and (5) of section 1(f) shall 
apply for purposes of this paragraph. 
‘‘(3) ROUNDING.—The applicable amount under 
this subsection shall be rounded up to the next whole 
dollar amount. 
‘‘(4) NATIONAL
EMISSIONS
TARGET
ATTAIN-
MENT YEAR.—For purposes of paragraph (1), a cal-
endar year is a national emissions target attainment 
year if the level of greenhouse gas emissions in the 
United States for the calendar year does not exceed 
20 percent of the level of greenhouse gas emissions 
in the United States for calendar year 2005 as de-
termined by the Secretary in consultation with the 
Administrator of the Environmental Protection 
Agency. 
‘‘(c) REFUNDS FOR CAPTURING CARBON DIOXIDE 
AND PRODUCTION OF CERTAIN GOODS.— 
‘‘(1) CARBON DIOXIDE CAPTURE, UTILIZATION, 
AND STORAGE.— 
‘‘(A) IN GENERAL.—In the case of a per-
son who— 
‘‘(i) uses any coal, petroleum product, 
or natural gas for which a fee has been im-
posed under subsection (a)(1) in a manner 
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which results in the emission of qualified 
carbon dioxide, 
‘‘(ii) captures the resulting emitted 
qualified carbon dioxide at a qualified facil-
ity, and 
‘‘(iii)(I) disposes of such qualified car-
bon dioxide in secure storage, or 
‘‘(II) utilizes such qualified carbon di-
oxide in a manner provided in subpara-
graph (D), 
there shall be allowed a refund, in the same 
manner as if it were an overpayment of the fee 
imposed by such subsection, to such person in 
amount determined under subparagraph (B). 
‘‘(B) AMOUNT OF REFUND.—The amount 
of the refund under this subparagraph is an 
amount equal to the product of— 
‘‘(i) the applicable amount under sub-
section (b) for the calendar year in which 
such qualified carbon dioxide was captured 
and disposed or utilized, and 
‘‘(ii) the adjusted tons of qualified 
carbon dioxide captured and disposed or 
utilized. 
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‘‘(C) ADJUSTED TOTAL TONS.—For pur-
poses of subparagraph (B), the adjusted tons of 
qualified carbon dioxide captured and disposed 
or utilized shall be the total tons of qualified 
carbon dioxide captured and disposed or utilized 
reduced by the amount of any anticipated leak-
age of carbon dioxide into the atmosphere due 
to imperfect storage technology or otherwise, as 
determined by the Secretary in consultation 
with the Administrator of the Environmental 
Protection Agency. 
‘‘(D) REQUIREMENTS.— 
‘‘(i) IN GENERAL.—Any refund under 
subparagraph (A) shall apply only with re-
spect to qualified carbon dioxide that has 
been captured and disposed or utilized 
within the United States. 
‘‘(ii) DISPOSAL
AND
SECURE
STOR-
AGE.— 
‘‘(I) 
SECURE
STORAGE.—The 
Secretary, in consultation with the 
Administrator of the Environmental 
Protection Agency and the Secretary 
of Energy, shall establish regulations 
similar to the regulations under sec-
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tion 45Q(d)(2) for determining ade-
quate security measures for the secure 
storage of qualified carbon dioxide for 
purposes of subparagraph (A)(iii)(I) 
such that the carbon dioxide does not 
escape into the atmosphere. Such reg-
ulations shall ensure the stored car-
bon dioxide may not be sold, trans-
ferred, or exported for any purpose 
that results in the emission of carbon 
dioxide. 
‘‘(II) 
RECAPTURE.—The 
Sec-
retary shall, by regulations, provide 
for recapturing the benefit of any re-
fund made under subparagraph (A) 
with respect to any qualified carbon 
dioxide which is disposed in secure 
storage and ceases to be stored in a 
manner consistent with the require-
ments of this section. 
‘‘(iii) UTILIZATION.—The Secretary, 
in consultation with the Administrator of 
the Environmental Protection Agency, 
shall establish regulations providing for the 
appropriate methods and manners for the 
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utilization of qualified carbon dioxide 
under subparagraph (A)(iii)(II), including 
the utilization of captured carbon dioxide 
for enhanced oil or gas recovery and the 
production of substances such as plastics, 
biofuels, algae, and chemicals. Such regula-
tions shall provide for the minimization of 
the escape or further emission of the quali-
fied carbon dioxide into the atmosphere. 
‘‘(E) QUALIFIED CARBON DIOXIDE; QUALI-
FIED
FACILITY.—For purposes of this para-
graph— 
‘‘(i) QUALIFIED CARBON DIOXIDE.— 
The term ‘qualified carbon dioxide’ has the 
same meaning given that term under sec-
tion 45Q(b). 
‘‘(ii) QUALIFIED FACILITY.—The term 
‘qualified facility’ has the same meaning 
given that term under section 45Q(c), de-
termined without regard to paragraph (3) 
thereof. 
‘‘(2) MANUFACTURE OF CERTAIN GOODS.—In 
the case of a person who uses any coal, petroleum 
product, or natural gas for which a fee has been im-
posed under subsection (a)(1) as an input for a 
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manufactured good that encapsulates carbon dioxide 
in a manner such that it does not result in the direct 
emission of carbon dioxide in the manufacturing or 
subsequent use of such good, a refund shall be al-
lowed to such person in the same manner as if it 
were an overpayment of the fee imposed by such sec-
tion in an amount that is equal to the product of— 
‘‘(A) an amount equal to the applicable 
amount under subsection (b) for the calendar 
year in which such product was used, and 
‘‘(B) the total tons of carbon dioxide that 
would have otherwise been emitted through the 
combustion of such product. 
‘‘(3) EXPORTS.—In the case of a person who 
exports any coal, petroleum product, or natural gas 
from the United States for which a fee has been im-
posed under subsection (a)(1), a refund shall be al-
lowed to such person in the same manner as if it 
were an overpayment of the fee imposed by such sec-
tion in an amount that is equal to the fee previously 
imposed under such subsection with respect to such 
product (determined without regard to any increase 
under section 4694). 
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‘‘SEC. 4692. FEE ON FLUORINATED GREENHOUSE GASES. 
‘‘(a) IN GENERAL.—There is hereby imposed a fee 
in an amount determined under subsection (b) on 
fluorinated greenhouse gases— 
‘‘(1) produced at a fluorinated greenhouse gas 
production facility, 
‘‘(2) imported into the United States by a 
fluorinated greenhouse gas importer, or 
‘‘(3) emitted by an industrial fluorinated green-
house gas facility. 
‘‘(b) AMOUNT OF FEE.—The amount of fee imposed 
by subsection (a) shall be equal to the applicable percent-
age (as defined in subsection (c)(5)) of the applicable 
amount determined under section 4691(b) per ton of car-
bon dioxide equivalent produced or imported. 
‘‘(c) DEFINITIONS.—For purposes of this section— 
‘‘(1) FLUORINATED GREENHOUSE GASES.—The 
term ‘fluorinated greenhouse gases’ means sulfur 
hexafluoride (SF6), nitrogen trifluoride (NF3), any 
hydrofluorocarbon, any perfluorocarbon, any fully 
fluorinated linear, branched or cyclic alkane, ether, 
tertiary amine or aminoether, any perfluoropolye-
ther, any hydrofluoropolyether, and any other fluoro-
carbon except for substances with vapor pressures of 
less than 1 mm of Hg absolute at 25 degrees Cel-
sius. 
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‘‘(2) FLUORINATED GREENHOUSE GAS PRODUC-
TION FACILITY.—The term ‘fluorinated greenhouse 
gas production facility’ means any facility which is 
included under the industrial gas supplier source 
category under subpart OO of part 98 of title 40, 
Code of Federal Regulations, as in effect on the date 
of the enactment of the American Opportunity Car-
bon Fee Act of 2017. 
‘‘(3) FLUORINATED
GREENHOUSE
GAS
IM-
PORTER.—The term ‘fluorinated greenhouse gas im-
porter’ means any importer who is included under— 
‘‘(A) the industrial gas supplier source cat-
egory under subpart OO of part 98 of title 40, 
Code of Federal Regulations, as in effect on the 
date of the enactment of the American Oppor-
tunity Carbon Fee Act of 2017, or 
‘‘(B) the source category under subpart 
QQ of such part (as so in effect). 
‘‘(4) INDUSTRIAL FLUORINATED GREENHOUSE 
GAS FACILITY.—The term ‘industrial greenhouse gas 
facility’ means any facility which— 
‘‘(A) is included under— 
‘‘(i) the aluminum production source 
category under subpart F of part 98 of 
title 40, Code of Federal Regulations, as in 
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effect on the date of the enactment of the 
American Opportunity Carbon Fee Act of 
2017, 
‘‘(ii) the HCFC–22 production and 
HFC–23 destruction source category under 
subpart O of such part (as so in effect), or 
‘‘(iii) the fluorinated gas production 
source category under subpart L of such 
part (as so in effect), and 
‘‘(B) emitted during the previous calendar 
year fluorinated greenhouse gases with a total 
carbon dioxide equivalent of not less than 
25,000 tons. 
‘‘(5) APPLICABLE
PERCENTAGE.—The term 
‘applicable percentage’ means the percentage deter-
mined in accordance with the following table: 
‘‘In the case of any taxable year beginning 
in calendar year: 
The applicable 
percentage is: 
2018, 2019, or 2020 .............................................................
10 percent
2021 ......................................................................................
20 percent
2022 ......................................................................................
30 percent
2023 ......................................................................................
40 percent
2024 ......................................................................................
50 percent
2025 ......................................................................................
60 percent
2026 ......................................................................................
70 percent
2027 ......................................................................................
80 percent
2028 ......................................................................................
90 percent
2029 or thereafter ................................................................
100 percent. 
‘‘(d) EXEMPTION FOR EXPORTS.—For purposes of 
determining fluorinated greenhouse gases produced or im-
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ported under subsection (a), there shall not be taken into 
account any fluorinated greenhouse gases exported from 
the United States in bulk or exported from the United 
States in equipment pre-charged with fluorinated green-
house gases or containing fluorinated greenhouse gases in 
closed cell foams. 
‘‘(e) REFUND FOR CONSUMPTIVE USES AND DE-
STRUCTION.—In the case of a person who uses any 
fluorinated greenhouse gas for which a fee has been im-
posed under paragraph (1) or (2) of subsection (a) as an 
input for a manufactured good that transforms the 
fluorinated greenhouse gas such that it cannot later be 
emitted or otherwise destroys the gas (without emissions), 
a refund shall be allowed to such person in the same man-
ner as if it were an overpayment of the fee imposed by 
such subsection in an amount that is equal to the product 
of— 
‘‘(1) an amount equal to the applicable percent-
age (as defined in subsection (c)(5) of the applicable 
amount under section 4691(b), for the calendar year 
in which such fluorinated greenhouse gas was used 
or destroyed, and 
‘‘(2) the excess (if any) of— 
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‘‘(A) the total carbon dioxide equivalent of 
the fluorinated greenhouse gases used or de-
stroyed, over 
‘‘(B) the total carbon dioxide equivalent of 
any fluorinated greenhouse gases created as the 
result of the transformation or destruction 
process. 
‘‘SEC. 4693. FEE FOR OTHER GREENHOUSE GAS EMISSIONS. 
‘‘(a) IN GENERAL.—There is hereby imposed a fee 
in an amount determined under subsection (b) on the 
emission (including attributed emissions) of any green-
house gas (other than carbon dioxide or fluorinated green-
house gases) from any greenhouse gas emissions source. 
‘‘(b) AMOUNT OF FEE.—The amount of fee imposed 
by subsection (a) shall be equal to the applicable amount 
determined under section 4691(b) per ton of carbon diox-
ide equivalent emitted by the greenhouse gas emissions 
source. 
‘‘(c) GREENHOUSE GAS EMISSIONS SOURCE.—The 
term ‘greenhouse gas emissions source’ means any facility 
which— 
‘‘(1) is required to report emissions (or which 
would be required to report emissions notwith-
standing any other provision of law prohibiting the 
implementation of or use of funds for such require-
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ments), or to which emissions are attributed, under 
part 98 of title 40, Code of Federal Regulations, as 
in effect on the date of the enactment of the Amer-
ican Opportunity Carbon Fee Act of 2017, and 
‘‘(2) emitted during the previous calendar year 
greenhouse gases (not including carbon dioxide or 
fluorinated greenhouse gases) at a rate equal to the 
carbon dioxide equivalent of not less than 25,000 
tons. 
‘‘SEC. 4694. ASSOCIATED EMISSIONS. 
‘‘(a) REPORTING PROGRAM.— 
‘‘(1) IN GENERAL.—Not later than January 1, 
2020, the Secretary, in consultation with the Admin-
istrator of the Environmental Protection Agency, the 
Secretary of the Interior, the Administrator of the 
Energy Information Administration, and the Admin-
istrator of the Pipeline and Hazardous Materials 
Safety Administration, shall establish and implement 
a program to identify all major source categories of 
associated emissions and collect data on associated 
emissions from the coal, petroleum products, and 
natural gas supply chains. 
‘‘(2) ANNUAL
REPORT.—Not later than 12 
months after the date that the Secretary implements 
the program described in paragraph (1), and annu-
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