I 
114TH CONGRESS 
1ST SESSION H. R. 4283 
To amend the Internal Revenue Code of 1986 to impose a tax on coal, 
oil, and natural gas, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 17, 2015 
Mr. MCNERNEY 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 impose 
a tax on coal, oil, and natural gas, 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 ‘‘Consumers Rebate to 
ban Emissions and Boost AlTernative Energy Act’’ or the 
‘‘Consumers REBATE Act’’. 
SEC. 2. EXCISE TAX ON CARBON DIOXIDE CONTENT OF 
COAL, OIL, AND NATURAL GAS. 
(a) IN GENERAL.—The Internal Revenue Code of 
1986 is amended by adding at the end the following: 
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‘‘Subtitle L—Carbon Dioxide Con-
tent of Coal, Oil, and Natural 
Gas 
‘‘Sec. 9901. Imposition of tax. 
‘‘Sec. 9902. Carbon equivalency fee. 
‘‘Sec. 9903. Definitions. 
‘‘Sec. 9904. Special rules. 
‘‘SEC. 9901. IMPOSITION OF TAX. 
‘‘(a) IN GENERAL.—There is hereby imposed a tax 
on producing at the wellhead or mine in the United States, 
or importing, a taxable carbon substance. 
‘‘(b) RATE OF TAX.— 
‘‘(1) IN
GENERAL.—The tax imposed under 
subsection (a) shall be the applicable amount per ton 
of carbon dioxide content of the life-cycle emissions 
from the taxable carbon substance. 
‘‘(2) APPLICABLE AMOUNT.—For purposes of 
paragraph (1)— 
‘‘(A) For calendar year 2016, the term 
‘applicable amount’ means $15. 
‘‘(B) For a calendar year after 2016, the 
term ‘applicable amount’ means the amount in 
effect under subparagraph (A) for the preceding 
calendar plus $15. 
‘‘(3) TARGET ATTAINMENT YEAR.— 
‘‘(A) IN GENERAL.—For any calendar year 
that is a target attainment year, paragraph 
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(2)(B) shall be applied by substituting ‘zero 
dollars’ for ‘$15’. 
‘‘(B) TARGET
ATTAINMENT
YEAR.—For 
purposes of subparagraph (A), the term ‘target 
attainment year’ means any calendar year for 
which the Secretary of the Treasury, in con-
sultation with the Administrator of the Envi-
ronmental Protection Agency, determines that 
the life-cycle emissions from taxable carbon 
substances in the United States is 50 percent 
of the life-cycle emissions from taxable carbon 
substances in the United States in 2005. Each 
determination under the preceding year shall be 
made not later than 180 days before the begin-
ning of the calendar year to which it relates. 
‘‘(c) BY WHOM PAID.—The tax imposed by sub-
section (a) shall be paid by the producer, miner, or im-
porter of the taxable carbon substance. 
‘‘(d) REGULATIONS.—The Secretary shall issue such 
regulations as may be necessary or appropriate to carry 
out this subtitle, including regulations relating to the time-
ly and efficient issuance of permits and collection of pay-
ments for such permits. 
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‘‘SEC. 9902. CARBON EQUIVALENCY FEE. 
‘‘(a) PURPOSE.—The purpose of this section is to en-
sure the environmental effectiveness of this subtitle. 
‘‘(b) IMPORTS.—The Secretary shall impose carbon 
equivalency fees to be collected by the Commissioner re-
sponsible for U.S. Customs and Border Control on imports 
of goods containing or produced using a taxable carbon 
substance. The amount of the carbon equivalency fee with 
respect to the import of any good shall be equal to the 
cost that domestic producers of a comparable good incur 
as a result of— 
‘‘(1) the tax imposed under section 9901, and 
‘‘(2) carbon equivalency fees imposed under this 
subsection on any goods used in the production of 
such good. 
‘‘(c) EXPIRATION.—This section shall cease to have 
effect at such time as and to the extent that— 
‘‘(1) an international agreement requiring coun-
tries that emit carbon dioxide or produce goods con-
taining or using taxable carbon substances to adopt 
equivalent measures comes into effect, or 
‘‘(2) the country of export has implemented 
equivalent measures, as determined by the Sec-
retary, in consultation with the Secretary of State. 
‘‘SEC. 9903. DEFINITIONS. 
‘‘For purposes of this subtitle— 
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‘‘(1) TAXABLE CARBON SUBSTANCE.—The term 
‘taxable carbon substance’ means— 
‘‘(A) coal, 
‘‘(B) oil, and 
‘‘(C) natural gas. 
‘‘(2) COAL.—The term ‘coal’ includes lignite, 
anthracite, bituminous, subbituminous, peat or other 
forms of what is commonly referred to as coal pro-
duced from a mine. 
‘‘(3) OIL.—The term ‘oil’ includes crude oil 
condensates, natural gasoline, shale oil, any bitumen 
or bituminous mixture, any oil derived from a bitu-
men or bituminous mixture, and any oil derived 
from kerogen-bearing sources. 
‘‘(4) NATURAL GAS.—The term ‘natural gas’ 
means either natural gas unmixed, or any mixture of 
natural and artificial gas. 
‘‘(5) LIFE-CYCLE EMISSIONS.—The term ‘life- 
cycle emissions’ means total life-cycle emissions of 
carbon dioxide from a taxable carbon substance 
which shall be determined by the Administrator of 
the Environmental Protection Agency. 
‘‘(6) UNITED
STATES.—The term ‘United 
States’ means the States, and territory or possession 
of the United States, and the District of Columbia. 
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‘‘SEC. 9904. SPECIAL RULES. 
‘‘(a) EXPORT.—For purposes of this subtitle— 
‘‘(1) IN GENERAL.—No tax shall be imposed 
under section 9901 on the production or mining of 
a taxable carbon substance which is intended for ex-
port, including the sale or resale by a purchaser to 
a second purchaser for export. 
‘‘(2) PROOF
OF
EXPORT
REQUIRED.—Rules 
similar to the rules of section 4221(b) shall apply for 
purposes of paragraph (1). 
‘‘(3) CREDIT OR REFUND WHERE TAX PAID.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), if— 
‘‘(i) tax under section 9901 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 substance which was exported by any 
person and which, at the time of export, 
was a taxable carbon substance (as defined 
in section 9902(1)), 
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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— 
‘‘(i) has repaid or agreed to repay the 
amount of the tax to the person who ex-
ported the taxable chemical or taxable sub-
stance (as so defined), or 
‘‘(ii) has obtained the written consent 
of such exporter to the allowance of the 
credit or the making of the refund. 
‘‘(4) REFUNDS DIRECTLY TO EXPORTER.—The 
Secretary shall provide, in regulations, the cir-
cumstances under which a credit or refund (without 
interest) of the tax under section 9901 shall be al-
lowed or made to the person who exported the tax-
able carbon substance, where— 
‘‘(A) the person who paid the tax waives 
his claim to the amount of such credit or re-
fund, and 
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‘‘(B) the person exporting the taxable car-
bon substance provides such information as the 
Secretary may require in such regulations. 
‘‘(5) REGULATIONS.—The Secretary shall pre-
scribe such regulations as may be necessary to carry 
out the purposes of this subsection.’’. 
(b) QUARTERLY PAYMENTS TO ELIGIBLE INDIVID-
UALS.— 
(1) IN GENERAL.—From amounts deposited in 
the Treasury of the United States pursuant to sec-
tion 9901 of the Internal Revenue Code of 1986, the 
Secretary shall make a payment for each calendar 
quarter to each eligible individual. 
(2) QUARTERLY
PAYMENT.—For purposes of 
paragraph (1), the amount of each payment with re-
spect to an eligible individual shall be the amount 
determined by the Secretary by dividing— 
(A) for the years 2017 through 2026— 
(i) the total amount deposited in the 
Treasury of the United States pursuant to 
section 9901 of the Internal Revenue Code 
of 1986 for the preceding calendar quarter, 
by 
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(ii) the total number of eligible indi-
viduals for such preceding calendar quar-
ter, and 
(B) for year 2027 and subsequent years— 
(i) the smaller of— 
(I) the average of the total 
amounts deposited in the Treasury of 
the United States pursuant to section 
9901 of the Internal Revenue Code of 
1986 for the four quarters of 2026, 
and 
(II) the total amount deposited in 
the Treasury of the United States 
pursuant to section 9901 of the Inter-
nal Revenue Code of 1986 for the pre-
ceding calendar quarter, by 
(ii) the total number of eligible indi-
viduals for such preceding calendar quar-
ter. 
(3) ELIGIBLE
INDIVIDUAL.—For purposes of 
this subsection, the term ‘‘eligible individual’’ means, 
with respect to any quarter, any individual with a 
valid social security number (other than a non-
resident undocumented individual) who is lawfully 
present in the United States for such quarter, as de-
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termined and verified by the Secretary in consulta-
tion with any other Federal entity the Secretary de-
termines appropriate. 
(4) UNITED
STATES.—For purposes of this 
subsection, the term ‘‘United States’’ means the 
States, and territory or possession of the United 
States, and the District of Columbia. 
(c) CONFORMING AND CLERICAL AMENDMENTS.— 
(1) The table of subtitles for the Internal Rev-
enue Code of 1986 is amended by adding at the end 
the following new item: 
‘‘Subtitle L. Carbon Dioxide Content of Coal, Oil, and Natural Gas’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on January 1, 2017. 
Æ 
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