I 
117TH CONGRESS 
1ST SESSION H. R. 2307 
To create a Carbon Dividend Trust Fund for the American people in order 
to encourage market-driven innovation of clean energy technologies and 
market efficiencies which will reduce harmful pollution and leave a 
healthier, more stable, and more prosperous Nation for future genera-
tions. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 1, 2021 
Mr. DEUTCH (for himself, Mr. MALINOWSKI, Ms. ESHOO, Ms. SCHAKOWSKY, 
Mr. CRIST, Mr. KILMER, Mr. PETERS, Ms. CHU, Mr. CONNOLLY, Ms. 
CRAIG, Mr. MORELLE, Mr. CARBAJAL, Mr. RASKIN, Mr. SIRES, Mr. 
SHERMAN, Mr. CROW, Mr. CORREA, Ms. SCANLON, Mr. JOHNSON of 
Georgia, Ms. PINGREE, Mr. MOULTON, Ms. ROYBAL-ALLARD, Mr. 
GARAMENDI, Mr. EVANS, Mr. PHILLIPS, Ms. MENG, Mr. CA´RDENAS, Ms. 
LEE of California, and Mr. CARTWRIGHT) introduced the following bill; 
which was referred to the Committee on Ways and Means, and in addi-
tion to the Committees on Energy and Commerce, and Foreign Affairs, 
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 create a Carbon Dividend Trust Fund for the American 
people in order to encourage market-driven innovation 
of clean energy technologies and market efficiencies 
which will reduce harmful pollution and leave a healthier, 
more stable, and more prosperous Nation for future gen-
erations. 
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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 ‘‘Energy Innovation and 
Carbon Dividend Act of 2021’’. 
SEC. 2. FINDINGS. 
The Congress finds that— 
(1) efficient markets strengthen our economy 
and benefit our Nation by encouraging competition, 
innovation, and technological progress; 
(2) efficient markets should reflect all costs of 
goods to ensure that they advance America’s pros-
perity and national interests; 
(3) emissions of carbon pollution and other 
harmful pollutants into our Nation’s air impose sub-
stantial costs on all Americans and on future gen-
erations; and 
(4) creation of a Carbon Dividend Trust Fund, 
to be distributed to the American people, will make 
markets more efficient, create jobs, and stimulate 
competition, innovation, and technological progress 
that benefit all Americans and future generations. 
SEC. 3. CARBON DIVIDENDS AND CARBON FEE. 
The Internal Revenue Code of 1986 is amended by 
adding at the end the following new subtitle: 
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‘‘Subtitle L—CARBON DIVIDENDS 
AND CARBON FEE 
‘‘CHAPTER 101. CARBON FEES. 
‘‘CHAPTER 102. CARBON BORDER FEE ADJUSTMENT. 
‘‘CHAPTER 101—CARBON FEES 
‘‘Sec. 9901. Definitions. 
‘‘Sec. 9902. Carbon fee. 
‘‘Sec. 9903. Emissions reduction schedule. 
‘‘Sec. 9904. Decommissioning of carbon fee. 
‘‘Sec. 9905. Carbon Capture and Sequestration. 
‘‘Sec. 9906. Administrative authority. 
‘‘SEC. 9901. DEFINITIONS. 
‘‘For purposes of this subtitle: 
‘‘(a) ADMINISTRATOR.—The term ‘Administrator’ 
means the Administrator of the Environmental Protection 
Agency. 
‘‘(b) CARBON DIOXIDE EQUIVALENT OR CO2-e.—The 
term ‘carbon dioxide equivalent’ or ‘CO2-e’ means the 
number of metric tons of carbon dioxide emissions with 
the same global warming potential as one metric ton of 
another greenhouse gas. 
‘‘(c) CARBON-INTENSIVE PRODUCT.—The term ‘car-
bon-intensive product’ means, as identified by the Sec-
retary by rule— 
‘‘(1) for purposes of this chapter— 
‘‘(A) any manufactured or agricultural 
product which the Secretary in consultation 
with the Administrator determines is emissions- 
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intensive and trade-exposed, except that no cov-
ered fuel is a carbon-intensive product, and 
‘‘(B) until such time that the Secretary 
promulgates rules identifying carbon-intensive 
products, the following shall be considered car-
bon-intensive products: iron, steel, steel mill 
products (including pipe and tube), aluminum, 
cement, glass (including flat, container, and 
specialty glass and fiberglass), pulp, paper, 
chemicals, or industrial ceramics, and 
‘‘(2) for purposes of chapter 102, any economic 
sector, or product from that sector, which the Sec-
retary in consultation with the Administrator deter-
mines is prone to carbon leakage because it is emis-
sions-intensive and trade-exposed, along with other 
pertinent criteria, except that no covered fuel is a 
carbon-intensive product. 
‘‘(d) CARBON LEAKAGE.—The term ‘carbon leakage’ 
means an increase of global greenhouse gas emissions 
which are substantially due to the relocation of greenhouse 
gas sources from the United States to jurisdictions which 
lack comparable controls upon greenhouse gas emissions. 
‘‘(e) COST OF CARBON OR CARBON COSTS.—The 
term ‘cost of carbon’ or ‘carbon costs’ means a national 
or sub-national government policy which explicitly places 
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a price on greenhouse gas pollution and shall be limited 
to either a tax on greenhouse gases or a system of cap- 
and-trade. The cost of carbon is expressed as the price 
per metric ton of CO2-e. 
‘‘(f) COVERED ENTITY.—The term ‘covered entity’ 
means— 
‘‘(1) in the case of crude oil— 
‘‘(A) a refinery operating in the United 
States, and 
‘‘(B) any importer of any petroleum or pe-
troleum product into the United States, 
‘‘(2) in the case of coal— 
‘‘(A) any coal mining operation in the 
United States, and 
‘‘(B) any importer of coal into the United 
States, 
‘‘(3) in the case of natural gas— 
‘‘(A) any entity entering pipeline quality 
natural gas into the natural gas transmission 
system, and 
‘‘(B) any importer of natural gas into the 
United States, and 
‘‘(4) any entity or class of entities which, as de-
termined by the Secretary, is transporting, selling, 
or otherwise using a covered fuel in a manner which 
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emits a greenhouse gas to the atmosphere and which 
has not been covered by the carbon fee or the carbon 
border fee adjustment. 
‘‘(g) COVERED
FUEL.—The term ‘covered fuel’ 
means crude oil, natural gas, coal, or any other product 
derived from crude oil, natural gas, or coal which shall 
be used so as to emit greenhouse gases to the atmosphere. 
‘‘(h) CRUDE OIL.—The term ‘crude oil’ means 
unrefined petroleum. 
‘‘(i) EXPORT.—The term ‘export’ means to transport 
a product from within the jurisdiction of the United States 
to persons outside the United States. 
‘‘(j) FOSSIL FUEL.—The term ‘fossil fuel’ means 
coal, coal products, petroleum, petroleum products, or nat-
ural gas. 
‘‘(k) FULL FUEL CYCLE GREENHOUSE GAS EMIS-
SIONS.—The term ‘full fuel cycle greenhouse gas emis-
sions’ means the greenhouse gas content of a covered fuel 
plus that covered fuel’s upstream greenhouse gas emis-
sions. 
‘‘(l) GLOBAL
WARMING
POTENTIAL.—The term 
‘global warming potential’ means the ratio of the time- 
integrated radiative forcing from the instantaneous release 
of one kilogram of a trace substance relative to that of 
one kilogram of carbon dioxide. 
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‘‘(m) GREENHOUSE GAS.—The term ‘greenhouse 
gas’ means carbon dioxide (CO2), methane (CH4), nitrous 
oxide (N2O), and other gases as defined by rule of the 
Administrator. 
‘‘(n) GREENHOUSE
GAS
CONTENT.—The term 
‘greenhouse gas content’ means the amount of greenhouse 
gases of a product or a fuel, expressed in metric tons of 
CO2-e, which would be emitted to the atmosphere by the 
use of a covered fuel and shall include, nonexclusively, 
emissions of carbon dioxide (CO2), nitrous oxide (N2O), 
methane (CH4), and other greenhouse gases as identified 
by rule of the Administrator. 
‘‘(o) GREENHOUSE GAS EFFECT.—The term ‘green-
house gas effect’ means the adverse effects of greenhouse 
gases on health or welfare caused by the greenhouse gas’s 
heat-trapping potential or its effect on ocean acidification. 
‘‘(p) IMPORT.—Irrespective of any other definition in 
law or treaty, the term ‘import’ means to land on, bring 
into, or introduce into any place subject to the jurisdiction 
of the United States. 
‘‘(q) PETROLEUM.—The term ‘petroleum’ means oil 
removed from the earth or the oil derived from tar sands 
or shale. 
‘‘(r) PRODUCTION GREENHOUSE GAS EMISSIONS.— 
The term ‘production greenhouse gas emissions’ means 
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the quantity of greenhouse gases, expressed in metric tons 
of CO2-e, emitted to the atmosphere resulting from, non-
exclusively, the production, manufacture, assembly, trans-
portation, or financing of a product. 
‘‘(s) UPSTREAM GREENHOUSE GAS EMISSIONS.— 
The term ‘upstream greenhouse gas emissions’ means the 
quantity of greenhouse gases, expressed in metric tons of 
CO2-e, emitted to the atmosphere resulting from, non-
exclusively, the extraction, processing, transportation, fi-
nancing, or other preparation of a covered fuel for use. 
‘‘SEC. 9902. CARBON FEE. 
‘‘(a) CARBON FEE.—There is hereby imposed a car-
bon fee on any covered entity’s emitting use, or sale or 
transfer for an emitting use, of any covered fuel. 
‘‘(b) AMOUNT OF THE CARBON FEE.—The carbon 
fee imposed by this section is an amount equal to— 
‘‘(1) the greenhouse gas content of the covered 
fuel, multiplied by 
‘‘(2) the carbon fee rate. 
‘‘(c) CARBON FEE RATE.—For purposes of this sec-
tion— 
‘‘(1) IN GENERAL.—The carbon fee rate, with 
respect to any use, sale, or transfer during a cal-
endar year, shall be— 
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‘‘(A) in the case of calendar year 2021, 
$15 per metric ton of CO2-e, and 
‘‘(B) except as provided in paragraph (2), 
in the case of any calendar year thereafter— 
‘‘(i) the carbon fee rate in effect 
under this subsection for the preceding cal-
endar year, plus 
‘‘(ii) $10. 
‘‘(2) EXCEPTIONS.— 
‘‘(A) 
INCREASED
CARBON
FEE
RATE 
AFTER MISSED ANNUAL EMISSIONS REDUCTION 
TARGET.—In the case of any year immediately 
following a year for which the Secretary deter-
mines under section 9903(b) that the actual 
emissions of greenhouse gases from covered 
fuels exceeded the emissions reduction target 
for the previous year, paragraph (1)(B)(ii) shall 
be applied by substituting ‘$15’ for the dollar 
amount otherwise in effect for the calendar year 
under such paragraph. 
‘‘(B) CESSATION OF CARBON FEE RATE IN-
CREASE AFTER CERTAIN EMISSION REDUCTIONS 
ACHIEVED.—In the case of any year imme-
diately following a year for which the Secretary 
determines under 9903(b) that actual emissions 
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of greenhouse gases from covered fuels is not 
more than 10 percent of the greenhouse gas 
emissions from covered fuels during the year 
2010, paragraph (1)(B)(ii) shall be applied by 
substituting ‘$0’ for the dollar amount other-
wise in effect for the calendar year under such 
paragraph. 
‘‘(3) INFLATION ADJUSTMENT.—In the case of 
any calendar year after 2021, each of the dollar 
amounts in paragraphs (1)(B) and (2)(A) shall be 
increased by an amount equal to— 
‘‘(A) such dollar amount, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar 
year, determined by substituting ‘calendar year 
2010’ for ‘calendar year 2016’ in subparagraph 
(A)(ii) thereof. 
‘‘(d) EXEMPTION
AND
REFUND.—The Secretary 
shall prescribe such rules as are necessary to ensure the 
fee imposed by this section is not imposed with respect 
to any nonemitting use, or any sale or transfer for a non-
emitting use, including rules providing for the refund of 
any carbon fee paid under this section with respect to any 
such use, sale, or transfer. 
‘‘(e) EXEMPTIONS.— 
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‘‘(1) AGRICULTURE.— 
‘‘(A) FUEL.—If any covered fuel or its de-
rivative is used on a farm for a farming pur-
pose, the Secretary shall pay (without interest) 
to the ultimate purchaser of such covered fuel 
or its derivative, the total amount of carbon 
fees previously paid upon that covered fuel or 
its derivative, as specified by rule of the Sec-
retary. 
‘‘(B) FARM, FARMING USE, AND FARMING 
PURPOSE.—The terms ‘farm’, ‘farming use’, 
and ‘farming purpose’ shall have the respective 
meanings given such terms under section 
6420(c). 
‘‘(C) OTHER
GREENHOUSE
GASES
EMIS-
SIONS
FROM
AGRICULTURE.—The carbon fee 
shall not be levied upon non-fossil fuel green-
house gas emissions which occur on a farm. 
‘‘(2) 
ARMED
FORCES
OF
THE
UNITED 
STATES.—If any covered fuel or its derivative is 
used by the Armed Forces of the United States as 
supplies for vessels of war, vehicles, or electrical 
power generation equipment, the Secretary shall pay 
(without interest) to the ultimate purchaser of such 
covered fuel or its derivative, the total amount of 
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carbon fees previously paid upon that covered fuel or 
its derivative, as specified by rule of the Secretary. 
‘‘SEC. 9903. EMISSIONS REDUCTION SCHEDULE. 
‘‘(a) IN GENERAL.—An emissions reduction schedule 
for greenhouse gas emissions from covered fuels is hereby 
established, as follows: 
‘‘(1) REFERENCE YEAR.—The net greenhouse 
gas emissions during the year 2010 shall be the ref-
erence amount of emissions and shall be determined 
from the ‘Inventory of U.S. Greenhouse Gas Emis-
sions and Sinks: 1990–2010’ published by the Envi-
ronmental Protection Agency in April of 2012. 
‘‘(2) EMISSIONS
REDUCTION
TARGET.—The 
first emission reduction target shall be for the year 
2023. The emission target for each year thereafter 
shall be the previous year’s target emissions minus 
a percentage of emissions during the reference year 
determined in accordance with the following table: 
‘‘Year 
Emissions Reduction Target 
2010 
Reference year 
2021 to 2022 
No emissions reduction target 
2023 to 2030 
5 percent of 2010 emissions per year 
2031 to 2050 
3 percent of 2010 emissions per year 
‘‘(b) ADMINISTRATIVE DETERMINATION.—Not later 
than 60 days after the beginning of each calendar year 
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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– 
2010’ published by the Environmental Protection Agency 
in April of 2012. 
‘‘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 2010, 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 2021, 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 2020’ for ‘calendar year 
2010’ 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 for any 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 cost of carbon be de-
ducted from the border carbon fee adjustment deter-
mined 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 2021. 
‘‘(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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