I
103D CONGRESS
1ST SESSION
H. R. 804
To amend the Internal Revenue Code of 1986 to reduce emissions of carbon
dioxide by imposing a tax on certain fuels based on their carbon content.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 3, 1993
Mr. STARK 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 reduce
emissions of carbon dioxide by imposing a tax on certain
fuels based on their carbon content.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. IMPOSITION OF CARBON TAX ON PRIMARY FOS-
SIL FUELS.
(a) GENERAL RULE.—Chapter 38 of the Internal
Revenue Code of 1986 (relating to environmental taxes)
is amended by adding at the end thereof the following new
subchapter:
‘‘Subchapter E—Carbon Tax on
Primary Fossil Fuels
‘‘Sec. 4691. Tax on coal.
‘‘Sec. 4692. Tax on petroleum.
‘‘Sec. 4693. Tax on natural gas.
‘‘Sec. 4694. Inflation adjustments.
‘‘SEC. 4691. TAX ON COAL.
‘‘(a) GENERAL RULE.—There is hereby imposed a
tax at the rate specified in subsection (b) on coal sold by
the producer or importer thereof.
‘‘(b) RATE OF TAX.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the rate of the tax imposed by subsection
(a) shall be $18 per ton.
‘‘(2) PHASE-IN.—
The rate of the tax
imposed by subsection
Effective during
(a) shall be the fol-
calendar year:
lowing amount per ton:
1994 ..........................................................................
$3.60
1995 ..........................................................................
$7.20
1996 ..........................................................................
$10.80
1997 ..........................................................................
$14.40
‘‘(c) DEFINITIONS AND SPECIAL RULES.—For pur-
poses of this section—
‘‘(1) COAL TO INCLUDE LIGNITE.—The term
‘coal’ includes lignite.
‘‘(2) TON.—The term ‘ton’ means 2,000
pounds.
‘‘(3) USE TREATED AS SALE.—If the producer
or importer of any coal uses such coal, such pro-
ducer or importer shall be liable for tax under this
section in the same manner as if such coal were sold
by such producer or importer.
‘‘SEC. 4692. TAX ON PETROLEUM.
‘‘(a) GENERAL RULE.—There is hereby imposed a
tax at the rate specified in subsection (c) on any petroleum
with respect to which there is a taxable event.
‘‘(b) TAXABLE EVENT.—For purposes of this section,
the term ‘taxable event’ means any event which would re-
sult in tax being imposed under section 4611 if—
‘‘(1) such section were applied without regard
to subsections (b)(2), (e), and (f) thereof, and
‘‘(2) section 4612(b) were applied by substitut-
ing ‘section 4692’ for ‘section 4611’.
‘‘(c) AMOUNT OF TAX.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the rate of the tax imposed by subsection
(a) shall be $3.90 per barrel.
‘‘(2) PHASE-IN.—
The rate of the tax
imposed by subsection
Effective during
(a) shall be the fol-
calendar year:
lowing amount per barrel:
1994 ..........................................................................
$.78
1995 ..........................................................................
$1.56
1996 ..........................................................................
$2.34
1997 ..........................................................................
$3.12
‘‘(d) PERSON LIABLE FOR TAX.—The person re-
quired to pay the tax imposed by this section on any petro-
leum shall be determined under the principles of section
4611(d).
‘‘(e) DEFINITIONS AND SPECIAL RULES.—For pur-
poses of this section—
‘‘(1) 
PETROLEUM.—The 
term 
‘petroleum’
means any petroleum product including crude oil.
‘‘(2) BARREL.—The term ‘barrel’ means 42
United States gallons.
‘‘(3) FRACTION OF BARREL.—In the case of a
fraction of a barrel, the tax imposed by this section
shall be the same fraction of the amount of such tax
imposed on a whole barrel.
‘‘(4) CERTAIN
RULES
MADE
APPLICABLE.—
Rules similar to the rules of subsections (c) and (e)
of section 4612 shall apply to the tax imposed by
this section.
‘‘SEC. 4693. TAX ON NATURAL GAS.
‘‘(a) GENERAL RULE.—There is hereby imposed a
tax at the rate specified in subsection (c) on—
‘‘(1) natural gas received at a United States
pipeline facility, and
‘‘(2) natural gas entered into the United States
for consumption, use, or warehousing.
‘‘(b) TAX ON CERTAIN USES, ETC.—
‘‘(1) IN GENERAL.—If—