beginning after the enactment of this section, the Sec-
retary, in consultation with the Administrator, shall deter-
mine whether actual emissions of greenhouse gases from 
covered fuels exceeded the emissions reduction target for 
the preceding calendar year. The Secretary shall make 
such determination using the same, or appropriately up-
dated, greenhouse gas accounting method as was used to 
determine the net greenhouse gas emissions in the ‘Inven-
tory of U.S. Greenhouse Gas Emissions and Sinks: 1990– 
2021’ published by the Environmental Protection Agency 
in April of 2023. 
‘‘SEC. 9904. DECOMMISSIONING OF CARBON FEE. 
‘‘(a) IN GENERAL.—At such time that— 
‘‘(1) the Secretary determines under 9903(b) 
that actual emissions of greenhouse gases from cov-
ered fuels is not more than 10 percent of the green-
house gas emissions during the year 2005, and 
‘‘(2) the monthly carbon dividend payable to an 
adult eligible individual has been less than $20 for 
3 consecutive years, 
the Secretary shall decommission in an orderly manner 
programs administering the carbon fee, the carbon border 
fee adjustment, and the Carbon Dividend Trust Fund. 
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‘‘(b) INFLATION ADJUSTMENT.—In the case of any 
calendar year after 2023, the $20 amount under sub-
section (a)(2) shall be increased by an amount equal to— 
‘‘(1) such dollar amount, multiplied by 
‘‘(2) cost-of-living adjustment determined under 
section 1(f)(3) for the calendar year, determined by 
substituting ‘calendar year 2022’ for ‘calendar year 
2016’ in subparagraph (A)(ii) thereof. 
‘‘SEC. 9905. CARBON CAPTURE AND SEQUESTRATION. 
‘‘(a) IN GENERAL.—The Secretary, in consultation 
with the Administrator and the Secretary of Energy, shall 
prescribe regulations for making payments as provided in 
subsection (b) to qualified facilities which capture and se-
quester qualified carbon dioxide or sequester qualified car-
bon dioxide obtained from one or more qualified facilities. 
‘‘(b) PAYMENT AMOUNTS.— 
‘‘(1) IN GENERAL.—The Secretary shall make 
payments to a qualified facility in the same manner 
as if such payment was a refund of an overpayment 
of the carbon fee imposed by section 9902, in cases 
in which such qualified facility— 
‘‘(A) uses any covered fuel— 
‘‘(i) with respect to which the carbon 
fee has been paid, and 
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‘‘(ii) which results in the emission of 
qualified carbon dioxide, 
‘‘(B) captures such emitted, or an equiva-
lent amount of, qualified carbon dioxide, and 
‘‘(C)(i) sequesters such qualified carbon di-
oxide in a manner which is safe, permanent, 
and in compliance with any applicable local, 
State, and Federal laws, or 
‘‘(ii) utilizes such qualified carbon dioxide 
or an equivalent amount of carbon dioxide in a 
manner provided in paragraph (3)(C). 
‘‘(2) AMOUNT OF REFUND.—The payment de-
termined under this section shall be an amount 
equal to the lesser of— 
‘‘(A)(i) the adjusted metric tons of quali-
fied carbon dioxide captured and sequestered or 
utilized, multiplied by 
‘‘(ii) the carbon fee rate during the year in 
which the carbon fee was imposed by section 
9902 upon the covered fuel to which such car-
bon dioxide relates, or 
‘‘(B) the amount of the carbon fee imposed 
by section 9902 with respect to such covered 
fuel. 
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‘‘(3) DEFINITIONS AND SPECIAL RULES.—For 
purposes of this section— 
‘‘(A) QUALIFIED CARBON DIOXIDE; QUALI-
FIED FACILITY.— 
‘‘(i) QUALIFIED CARBON DIOXIDE.— 
The term ‘qualified carbon dioxide’ has the 
same meaning given such term under sec-
tion 45Q(c). 
‘‘(ii) QUALIFIED FACILITY.—The term 
‘qualified facility’ means any industrial fa-
cility at which carbon capture equipment is 
placed in service. 
‘‘(B) ADJUSTED TOTAL METRIC TONS.— 
The adjusted total metric tons of qualified car-
bon dioxide captured and sequestered or utilized 
shall be the total metric tons of qualified carbon 
dioxide captured and sequestered or utilized, re-
duced by the amount of any carbon dioxide like-
ly to escape and be emitted into the atmosphere 
due to imperfect storage technology or other-
wise, as determined by the Secretary in con-
sultation with the Administrator. 
‘‘(C) UTILIZATION.—The Secretary, in 
consultation with the Administrator, shall es-
tablish regulations providing for the methods 
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and processes by which qualified carbon dioxide 
may be utilized so as to exclude that qualified 
carbon dioxide safely and permanently from the 
atmosphere. Utilization may include the produc-
tion of substances such as but not limited to 
plastics and chemicals. Such regulations shall 
minimize the escape or further emission of the 
qualified carbon dioxide into the atmosphere. 
‘‘(D) SEQUESTRATION.—Not later than 
540 days after the date of the enactment of this 
section, the Secretary, in consultation with the 
Administrator, shall prescribe regulations iden-
tifying the conditions under which carbon diox-
ide may be safely and permanently sequestered. 
‘‘(4) COORDINATION WITH CREDIT FOR CARBON 
DIOXIDE SEQUESTRATION.—At such time that the 
Secretary prescribes regulations implementing this 
section, no payment under this section shall be al-
lowed to a taxpayer to whom a credit has been al-
lowed in the same taxable year under section 45Q. 
‘‘SEC. 9906. ADMINISTRATIVE AUTHORITY. 
‘‘(a) IN GENERAL.—The Secretary in consultation 
with the Administrator shall prescribe such regulations, 
and other guidance, as may be necessary to carry out the 
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purposes of this subtitle and assess and collect the carbon 
fee imposed by section 9902. 
‘‘(b) SPECIFICALLY.—Such regulations and guidance 
shall include— 
‘‘(1) the identification of an effective point in 
the production, distribution, or use of a covered fuel 
for collecting such carbon fee, in such a manner so 
as to minimize administrative burden and maximize 
the extent to which full fuel cycle greenhouse gas 
emissions from covered fuels have the carbon fee lev-
ied upon them, 
‘‘(2) the identification of covered entities which 
shall be liable for the payment of the carbon fee, 
‘‘(3) requirements for the monthly payment of 
such fees, 
‘‘(4) as may be necessary or convenient, rules 
for distinguishing between different types of covered 
fuels, 
‘‘(5) as may be necessary or convenient, rules 
for distinguishing between a covered fuel’s green-
house gas content and its upstream greenhouse gas 
emissions, 
‘‘(6) rules to ensure that no covered fuel has 
the carbon fee or carbon border fee adjustment im-
posed upon it more than once, and 
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‘‘(7) rules to ensure that the domestic imple-
mentation of the carbon fee coordinate with the im-
plementation of the carbon border fee adjustment of 
chapter 102. 
‘‘CHAPTER 102—CARBON BORDER FEE 
ADJUSTMENT 
‘‘Sec. 9908. Carbon border fee adjustment. 
‘‘Sec. 9909. Administration of the carbon border fee adjustment. 
‘‘Sec. 9910. Allocation of carbon border fee adjustment revenues. 
‘‘Sec. 9911. Treaties and international negotiations. 
‘‘SEC. 9908. CARBON BORDER FEE ADJUSTMENT. 
‘‘(a) IN GENERAL.—The fees imposed by, and re-
funds allowed under, this section shall be referred to as 
the ‘carbon border fee adjustment’. 
‘‘(b) PURPOSE.—The purpose of the carbon border 
fee adjustment is to protect animal, plant, and human life 
and health, to conserve exhaustible natural resources by 
preventing carbon leakage, and to facilitate the creation 
of international agreements. 
‘‘(c) IMPORTS TO THE UNITED STATES.— 
‘‘(1) IMPORTED COVERED FUELS FEE.—In the 
case of any person that imports into the United 
States any covered fuel, there shall be imposed a fee 
equal to the total carbon fee that would be imposed 
on the fuel’s greenhouse gas content under the do-
mestic carbon fee, including processing emissions. 
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‘‘(2) IMPORTED CARBON-INTENSIVE PRODUCTS 
FEE.—In the case of any person that imports into 
the United States any carbon-intensive product, 
there shall be imposed a fee equal to the total car-
bon fee which would have accumulated upon the 
greenhouse gas content of the imported carbon-in-
tensive product had the imported carbon-intensive 
product been produced domestically and subject to 
the domestic carbon fee. 
‘‘(3) MODIFICATIONS.—The Secretary shall 
make an administrative determination of whether 
any class of imported covered fuels or class of im-
ported carbon-intensive product is carrying any total 
foreign carbon cost. The Secretary shall make a de-
termination of whether international law or the en-
hancement of global greenhouse gas mitigation ef-
forts require that those foreign costs of carbon be 
deducted from the border carbon fee adjustment de-
termined in subsection (c)(1) or subsection (d)(1). 
‘‘(4) FOREIGN COST OF CARBON; FOREIGN CAR-
BON COSTS.—For purposes of this subsection, the 
term ‘foreign cost of carbon’ or ‘foreign carbon cost’ 
means the explicit price a foreign jurisdiction places 
upon the emission of greenhouse gas pollution to the 
atmosphere through law or regulation. Such price 
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shall be expressed as the price per metric ton of 
CO2-e. 
‘‘(d) 
REFUND
ON
EXPORTS
FROM
UNITED 
STATES.— 
‘‘(1) COVERED FUELS.—Under regulations pre-
scribed by the Secretary, in the case of a covered 
fuel produced in the United States with respect to 
which the fee under section 9902 was paid, there 
shall be allowed as a credit or refund (without inter-
est) to any exporter of such covered fuels an amount 
equal to the total carbon fee levied upon the ex-
ported covered fuel up to the time of its exportation, 
including processing emissions. Any such credit or 
refund shall be allowed in the same manner as if it 
were an overpayment of tax imposed by section 
9902. 
‘‘(2) CARBON-INTENSIVE
PRODUCTS.—Under 
regulations prescribed by the Secretary, there shall 
be allowed a credit or refund (without interest) to 
exporters of carbon-intensive products manufactured 
or produced in the United States an amount equal 
to the total carbon fees accumulated upon the green-
house gas content of the exported carbon-intensive 
product up to the time of exportation. Any such 
credit or refund shall be allowed in the same manner 
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as if it were an overpayment of the fee imposed by 
section 9902 or 9904. 
‘‘SEC. 9909. ADMINISTRATION OF THE CARBON BORDER 
FEE ADJUSTMENT. 
‘‘(a) GENERALLY.—The Secretary in consultation 
with the Administrator shall prescribe regulations and 
guidance which implement the carbon border fee adjust-
ment under section 9908. 
‘‘(b) COLLABORATION.—In administering any aspect 
of the border carbon fee adjustment it is the sense of Con-
gress that the Secretary should collaborate with author-
ized officers of any jurisdiction, including sub-national 
governments, affected by the carbon border fee adjust-
ment. 
‘‘(c) METHODOLOGY.—In administering the border 
carbon fee adjustment, the Secretary shall use methodolo-
gies, procedures, and data which as may be necessary or 
convenient— 
‘‘(1) disaggregate a product’s greenhouse gas 
content; 
‘‘(2) are consistent with international law and 
facilitate international cooperation; 
‘‘(3) in the case of incomplete data, use cus-
tomary methods of interpolation that favor enhanced 
mitigation and facilitate international cooperation; 
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‘‘(4) avoid the double pricing of greenhouse gas 
emissions; and 
‘‘(5) harmonize the border carbon fee adjust-
ment with the domestic carbon fee so as to ensure 
all covered fuels used in the United States are sub-
ject to the carbon fee. 
‘‘(d) SCHEDULE.—The Secretary shall— 
‘‘(1) begin implementation the border carbon 
fee adjustment for covered fuels at the same time as 
the implementation of the carbon fee; and 
‘‘(2) begin implementation of the border carbon 
fee adjustment for carbon-intensive products within 
two years of the date of the enactment of the En-
ergy Innovation and Carbon Dividend Act of 2023. 
‘‘(e) PROCEDURE.—The Secretary shall— 
‘‘(1) establish fair, timely, impartial, and as 
necessary confidential procedures by which the im-
porter of any carbon-intensive product or any cov-
ered fuel may petition the Secretary to revise the 
Secretary’s determination of its border carbon fee 
adjustment 
liability 
calculated 
under 
section 
9908(c)(1); 
‘‘(2) establish fair, timely, impartial, and as 
necessary confidential procedures by which any ex-
porter of any product from the United States may 
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petition the Secretary to include that exported prod-
uct on the list of carbon-intensive products; and 
‘‘(3) establish fair, timely, impartial, and as 
necessary confidential procedures by which the ex-
porter of any carbon-intensive product or any cov-
ered fuel may petition the Secretary to revise the 
Secretary’s determination of its border carbon fee 
adjustment refund calculated under section 9908(d). 
‘‘(f) SHIPMENTS FROM THE UNITED STATES TO THE 
TERRITORIES
OF
THE
UNITED
STATES.—Notwith-
standing any other treaty, law, or policy, shipments of cov-
ered fuels or carbon-intensive products from the United 
States to Guam, the United States Virgin Islands, Amer-
ican Samoa, Puerto Rico, and the Northern Mariana Is-
lands shall be eligible for a refund of the carbon fee under 
section 9908(d). 
‘‘(g) IMPORTS TO THE TERRITORIES OF THE UNITED 
STATES.—Notwithstanding any other treaty, law, or pol-
icy, imports of covered fuels or carbon-intensive products 
to Guam, the United States Virgin Islands, American 
Samoa, Puerto Rico, and the Northern Mariana Islands 
shall not be subject to section 9908(c). 
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