SEC. 2. GREENHOUSE GAS EMISSIONS. 
(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—Greenhouse Gas Emissions 
‘‘Sec. 4691. Tax imposed on greenhouse gas emissions. 
‘‘Sec. 4692. Border adjustments. 
‘‘Sec. 4693. Definitions and other rules. 
‘‘SEC. 4691. TAX IMPOSED ON GREENHOUSE GAS EMIS-
SIONS. 
‘‘(a) IN GENERAL.—There is hereby imposed a tax 
on greenhouse gas emissions from fossil fuel products and 
on greenhouse gas emissions from any person who is re-
quired to report emissions, or to which emissions are at-
tributed, under subpart A of part 98 of title 40, Code of 
Federal Regulations, as in effect on the date of the enact-
ment of the Tax Pollution, Not Profits Act, and emitted 
not less than 25,000 tons of carbon dioxide emissions or 
carbon dioxide equivalent emissions during the preceding 
calendar year. 
‘‘(b) APPLICATION
OF TAX.—The Secretary shall 
apply to the person responsible for reporting under part 
98 of title 40, Code of Federal Regulations, unless, in con-
sultation with the Administrator of the Environmental 
Protection Agency, the Secretary determines that applying 
the tax to a different person would be less burdensome 
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and would not have the effect of increasing carbon dioxide 
equivalent emissions. 
‘‘(c) AMOUNT OF TAX.—In 2018, the amount of the 
tax will equal $30 per metric ton of carbon dioxide or car-
bon dioxide equivalent. The amount in the preceding sen-
tence shall be increased each subsequent year by 4 percent 
above inflation, as measured by the Consumer Price Index 
for all urban consumers (all items; United States city av-
erage), rounded up to the next whole dollar amount. 
‘‘(d) REFUND.—The Secretary shall provide a refund 
equal to the tax per metric ton of carbon dioxide or carbon 
dioxide equivalent for the capture and permanent seques-
tration of greenhouse gas emissions or from the use of 
a fossil fuel in manufacturing which does not result in the 
emission of a greenhouse gas in a manner that can be 
reasonably assumed to permanently sequester the green-
house gas content of the fossil fuel. 
‘‘SEC. 4692. BORDER ADJUSTMENTS. 
‘‘(a) EXPORTS.—In the case of any good exported 
from the United States, the Secretary may provide an 
equivalency refund to the person exporting such good 
equal to the cost associated with the tax imposed in section 
4691. 
‘‘(b) IMPORTS.—In the case of any good imported 
into the United States that would have had an increased 
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cost imposed by section 4691 had that good been produced 
in the United States, the Secretary may impose an equiva-
lency fee on the person importing such good equivalent 
to the tax that would have been imposed under section 
4691 at any point in the supply chain of that good, had 
that good been produced in the United States. 
‘‘(c) REGULATORY AUTHORITY.—The Secretary shall 
consult with the Administrator of the Environmental Pro-
tection Agency, the United States Trade Representative, 
and the Secretary of Energy in establishing rules and reg-
ulations implementing the purposes of this section. 
‘‘SEC. 4693. DEFINITIONS AND OTHER RULES. 
‘‘(a) DEFINITIONS.—For purposes of this sub-
chapter— 
‘‘(b) CARBON DIOXIDE EQUIVALENT.—The term 
‘carbon dioxide equivalent’ means, for each greenhouse 
gas, the quantity of greenhouse gas that the Administrator 
of the Environmental Protection Agency determines 
makes the same contribution to global warming as 1 met-
ric ton of carbon dioxide. 
‘‘(c) GREENHOUSE GAS.—The term ‘greenhouse gas’ 
means any of the following: 
‘‘(1) Carbon dioxide. 
‘‘(2) Methane. 
‘‘(3) Nitrous oxide. 
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‘‘(4) Sulfur hexafluoride. 
‘‘(5) Hydrofluorocarbons. 
‘‘(6) Perfluorocarbons. 
‘‘(d) REGULATIONS.—The Secretary shall prescribe 
such regulations as may be necessary to carry out the pro-
visions of this subchapter, including, in consultation with 
the Administrator of the Environmental Protection Agen-
cy, defining ‘permanent sequestration of greenhouse gas 
emissions’ and specifying under what conditions ‘the use 
of a fossil fuel in manufacturing which does not result in 
the emission of a greenhouse gas in a manner that can 
be reasonably assumed to permanently sequester the 
greenhouse gas content of the fossil fuel’ for purposes of 
this section.’’. 
(b) CLERICAL AMENDMENT.—The table of sub-
chapters for chapter 38 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
item: 
‘‘SUBCHAPTER E. GREENHOUSE GAS EMISSIONS’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2017. 
SEC. 3. ASSISTANCE TO LOW INCOME FAMILIES. 
(a) IN GENERAL.—The Social Security Act (42 
U.S.C. 301 et seq.) is amended by adding at the end the 
following: 
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‘‘TITLE XXII—LOW-INCOME EN-
ERGY COST MITIGATION PRO-
GRAM 
‘‘SEC. 2201. LOW-INCOME ENERGY COST MITIGATION PRO-
GRAM. 
‘‘(a) IN GENERAL.—The Secretary, in consultation 
with the Commissioner of Social Security and the Sec-
retary of Agriculture, shall formulate and administer the 
program provided for in this section, which shall be known 
as the ‘Low-Income Energy Cost Mitigation Program’, 
and under which eligible households are provided an en-
ergy refund. 
‘‘(b) ELIGIBILITY OF HOUSEHOLDS TO RECEIVE EN-
ERGY REFUND.—Each eligible household shall be entitled 
to receive monthly cash payments under this section in 
an amount equal to the monthly energy refund amount 
determined under subsection (d). 
‘‘(c) ELIGIBILITY.— 
‘‘(1) ELIGIBLE
HOUSEHOLDS.—A household 
shall be considered to be an eligible household for 
purposes of this section if— 
‘‘(A) except as provided in subsection 
(d)(4), the gross income of the household does 
not exceed 200 percent of the poverty line; 
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‘‘(B) the State agency for the State in 
which the household is located determines that 
the household is participating in— 
‘‘(i) the Supplemental Nutrition As-
sistance Program authorized by the Food 
and Nutrition Act of 2008 (7 U.S.C. 2011 
et seq.); 
‘‘(ii) the Food Distribution Program 
on Indian Reservations authorized by sec-
tion 4(b) of such Act (7 U.S.C. 2013(b)); 
or 
‘‘(iii) the program for nutrition assist-
ance in Puerto Rico or American Samoa 
under section 19 of such Act (7 U.S.C. 
2028); 
‘‘(C) the household consists of a single in-
dividual or a married couple, and— 
‘‘(i) receives the subsidy described in 
section 1860D–14 of this Act (42 U.S.C. 
1395w–114); or 
‘‘(ii)(I) participates in the program 
under title XVIII of this Act; and 
‘‘(II) meets the income requirements 
described in section 1860D–14(a)(1) or 
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(a)(2) of this Act (42 U.S.C. 1395w– 
114(a)(1) or (a)(2)); or 
‘‘(D) the household consists of a single in-
dividual or a married couple, and receives bene-
fits under the supplemental security income 
program under title XVI of this Act (42 U.S.C. 
1381–1383f). 
‘‘(2) LIMITATION.—Notwithstanding any other 
provision of law, the Secretary shall provide refunds 
to United States citizens, United States nationals, 
and individuals lawfully residing in the United 
States who qualify for a refund under paragraph 
(1)(A), and shall establish procedures to ensure that 
other individuals do not receive refunds. 
‘‘(3) NATIONAL
STANDARDS.—The Secretary 
shall consult with the Secretary of Agriculture and 
establish uniform national standards of eligibility en-
suring that States may co-administer the energy re-
fund program with the Supplemental Nutrition As-
sistance Program in accordance with the provisions 
of this section. No State agency shall impose any 
other standard or requirement as a condition of eli-
gibility or refund receipt under the program. Assist-
ance in the Energy Refund Program shall be fur-
nished promptly to all eligible households who make 
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application for such participation or are already en-
rolled in any program referred to in paragraph (1). 
‘‘(d) MONTHLY ENERGY REFUND AMOUNT.— 
‘‘(1) ESTIMATED ANNUAL REFUND.—Not later 
than 30 days after the date of the enactment of the 
Tax Pollution, Not Profits Act, and each November 
30 thereafter, the Energy Information Administra-
tion shall estimate, pursuant to a method that is ap-
propriate for such purposes, the annual total loss in 
purchasing power that will result from subchapter E 
of chapter 38 of the Internal Revenue Code of 1986 
(relating to excise tax on carbon dioxide and other 
greenhouse gas emissions) in the next calendar year 
for households of each size with gross income equal 
to 150 percent of the poverty line, based on the pro-
jected total market value of all compliance costs, ex-
cluding the amount of the increase in households’ 
energy consumption that is financed by higher cost 
of living adjustments to Federal benefits that result 
from increased carbon costs. 
‘‘(2) MONTHLY ENERGY REFUND.—Subject to 
paragraph (3), the amount of the monthly energy re-
fund for an eligible household under this section 
shall be— 
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‘‘(A) if the household has 1, 2, 3, or 4 
members, 1⁄12 of the amount estimated under 
paragraph (1) for such calendar year for a 
household of the same size, rounded to the 
nearest whole dollar amount; or 
‘‘(B) if the household has 5 or more mem-
bers, 1⁄12 of the arithmetic mean value of the 
amounts estimated under paragraph (1) for 
such calendar year for households with 5 or 
more members, rounded to the nearest whole 
dollar amount. 
‘‘(3) PHASEOUT.—In any case in which the 
gross income of an eligible household exceeds 150 
percent of the poverty line applicable to such house-
hold, the refund determined under paragraph (2) 
shall be reduced ratably (but not below zero) by 2 
percentage points for each percentage point that the 
gross income exceeds 150 percent of such poverty 
line. 
‘‘(4) EXTENSION OF PHASEOUT INTO MIDDLE 
CLASS.— 
‘‘(A) DETERMINATION.—Not later than 30 
days after the date of the enactment of the Tax 
Pollution, Not Profits Act, and each November 
30 thereafter, the Secretary shall estimate for 
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the next calendar year the amount of revenues 
to be received in the general fund of the Treas-
ury by reason of subchapter E of chapter 38 
(relating to carbon dioxide and other green-
house gas emissions) and the expenditures dur-
ing such calendar year to carry out the Tax 
Pollution, Not Profits Act and the amendments 
made by such Act. 
‘‘(B) MODIFIED PHASEOUT.—If such reve-
nues exceed such expenditures, then— 
‘‘(i) for such calendar year the phase-
out in paragraph (3) shall be applied by 
substituting for ‘2 percentage points’ the 
percentage determined by the Secretary to 
extend the phaseout under paragraph (3) 
in such a manner as to reduce such excess 
to zero, and 
‘‘(ii) in the case of households the 
gross income of which exceeds 200 percent 
of the poverty line, Secretary may under 
regulations allow a credit under subpart C 
of part IV of subchapter A of chapter 1 of 
the Internal Revenue Code of 1986 for the 
aggregate of the monthly energy refunds. 
‘‘(e) DELIVERY MECHANISM.— 
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‘‘(1) Subject to standards and an implementa-
tion schedule set by the Secretary, the energy refund 
shall be provided in monthly installments via— 
‘‘(A) direct deposit into the eligible house-
hold’s designated bank account; 
‘‘(B) the State’s electronic benefit transfer 
system; or 
‘‘(C) another Federal or State mechanism, 
if such a mechanism is approved by the Sec-
retary. 
‘‘(2) The standards described under paragraph 
(1) shall— 
‘‘(A) protect the privacy of energy refund 
applicants and recipients; 
‘‘(B) provide energy refund recipients with 
choices, as appropriate, for delivery and receipt 
of refunds; 
‘‘(C) ensure ease of use and access to re-
funds, including a prohibition on any fees 
charged for withdrawals or other related serv-
ices; 
‘‘(D) protect, in a cost-effective manner, 
against improper access to energy refunds; 
‘‘(E) ensure interoperability of the Energy 
Refund Program between States and permit 
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