cies which, in the case of high emitting coun-
tries, reduce greenhouse gas emissions at a rate 
at least equivalent to United States greenhouse 
gas emission reductions, or, in the case of low 
emitting countries, prevent the increase in 
greenhouse gas emissions. 
Any such finding shall be reviewed at least every 3 
years and amended or revoked as required. 
SEC. 4. ESTABLISHMENT OF THE CARBON DIVIDEND TRUST 
FUND. 
(a) IN GENERAL.—Subchapter A of chapter 98 of the 
Internal Revenue Code of 1986 is amended by adding at 
the end the following: 
‘‘SEC. 9512. CARBON DIVIDEND TRUST FUND. 
‘‘(a) ESTABLISHMENT
AND
FUNDING.—There is 
hereby established in the Treasury of the United States 
a trust fund to be known as the ‘Carbon Dividend Trust 
Fund’, consisting of such amounts as may be appropriated 
to such trust fund as provided for in this section. 
‘‘(b) TRANSFERS TO THE CARBON DIVIDEND TRUST 
FUND.—There is hereby appropriated to the Carbon Divi-
dend Trust Fund amounts equal to the fees received into 
the Treasury less any amounts refunded or paid under 
section 9902(d) or 9906 of chapter 101 for each month. 
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‘‘(c) EXPENDITURES.—Amounts in the trust fund 
shall be available for the following purposes: 
‘‘(1) ADMINISTRATIVE EXPENSES.—So much of 
the expenses necessary to administer the Carbon 
Dividend Trust Fund for each year, as does not ex-
ceed— 
‘‘(A) in the case of the first 5 calendar 
years ending after the date of the enactment of 
this section, the administrative expenses for any 
year may not exceed 8 percent of amounts ap-
propriated to the Carbon Dividend Trust Fund 
during such year, and 
‘‘(B) in the case of any calendar year 
thereafter, 2 percent of the 5-year rolling aver-
age of the amounts appropriated to the Carbon 
Dividend Trust Fund, and 
‘‘(2) OTHER ADMINISTRATIVE EXPENSES.—So 
much of the expenses as are necessary to administer 
chapter 101 for any year as does not to exceed 0.60 
percent of the amounts appropriated to the Carbon 
Dividend Trust Fund for the previous year, and fur-
ther limited as follows: 
‘‘(A) The Department of the Treasury. 
‘‘(B) The Social Security Administration. 
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‘‘(C) The Environmental Protection Agen-
cy. 
‘‘(D) Department of State. 
‘‘(3) CARBON DIVIDEND PAYMENTS.— 
‘‘(A) IN GENERAL.—From the amounts in 
the Carbon Dividend Trust Fund made avail-
able under paragraphs (1) and (2) of this sub-
section for any year, the Secretary shall for 
each month beginning more than 270 days after 
the date of the enactment of the Energy Inno-
vation and Carbon Dividend Act of 2019, make 
carbon dividend payments to each eligible indi-
vidual. 
‘‘(B) PRO-RATA
SHARE.—A carbon divi-
dend payment is one pro-rata share for each 
adult, and half a pro-rata share for each child 
under 19 years old, of amounts available for the 
month in the Carbon Dividend Trust Fund. 
‘‘(C) ELIGIBLE
INDIVIDUAL.—The term 
‘eligible individual’ means, with respect to any 
month, any natural living person who has a 
valid Social Security number or taxpayer identi-
fication number and is a citizen or lawful resi-
dent of the United States (other than any indi-
vidual who is a citizen of any possession of the 
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United States and whose bona fide residence is 
outside of the United States). The Secretary is 
authorized to verify an individual’s eligibility to 
receive a carbon dividend payment. 
‘‘(D) FEE TREATMENT OF PAYMENTS.— 
Amounts paid under this subsection shall be in-
cludible in gross income. 
‘‘(E) FEDERAL PROGRAMS AND FEDERAL 
ASSISTED
PROGRAMS.—The carbon dividend 
amount received by any individual shall not be 
taken into account as income and shall not be 
taken into account as resources for purposes of 
determining the eligibility of such individual or 
any other individual for benefits or assistance, 
or the amount or extent of benefits or assist-
ance, under any Federal program or under any 
State or local program financed in whole or in 
part with Federal funds. 
‘‘(F) ADVANCE PAYMENT.—The Secretary 
shall transfer to the Carbon Dividend Trust 
Fund such amounts as are necessary for the 
disbursement of an advanced carbon dividend to 
all eligible individuals as follows: 
‘‘(i) An advanced carbon dividend 
shall be the same as the anticipated first 
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carbon dividend required to be distributed 
under subparagraph (A) and shall be dis-
tributed the month prior to the first collec-
tion of the carbon fee. 
‘‘(ii) Total amounts disbursed as ad-
vanced carbon dividends shall be deducted 
from the carbon dividends on a pro-rata 
basis over the first 3 years after the dis-
bursement of the first carbon dividends. 
‘‘(d) ADMINISTRATIVE AUTHORITY.—The Secretary 
shall promulgate rules, guidance, and regulations useful 
and necessary to implement the Carbon Dividend Trust 
Fund.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for subchapter A of chapter 98 of such Code is amended 
by adding at the end the following new item: 
‘‘Sec. 9512. Carbon Dividend Trust Fund.’’. 
SEC. 5. LIMITED DISCLOSURE OF INFORMATION. 
Section 6103(l) of the Internal Revenue Code of 1986 
is amended by adding at the end the following new para-
graphs: 
‘‘(23) LIMITED DISCLOSURE OF IDENTITY IN-
FORMATION RELATING TO CARBON DIVIDEND PAY-
MENTS.— 
‘‘(A) DEPARTMENT OF TREASURY.—Indi-
vidual identity information shall, without writ-
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ten request, be open to inspection by or disclo-
sure to officers and employees of the Depart-
ment of the Treasury whose official duties re-
quire such inspection or disclosure for purposes 
of administering section 9512 (relating the Car-
bon Dividend Trust Fund). 
‘‘(B) COMMISSIONER
OF
SOCIAL
SECU-
RITY.—The Commissioner of Social Security 
shall, on written request, disclose to officers 
and employees of the Department of the Treas-
ury individual identity information which has 
been disclosed to the Social Security Adminis-
tration as is necessary to administer section 
9512. 
‘‘(C) RESTRICTION ON DISCLOSURE.—In-
formation disclosed under this paragraph shall 
be disclosed only for purposes of, and to the ex-
tent necessary in, carrying out section 9512.’’. 
SEC. 6. NATIONAL ACADEMY OF SCIENCES REVIEW OF CAR-
BON 
FEE 
AND 
EMISSIONS 
REDUCTION 
SCHEDULE. 
(a) IN GENERAL.—Not later than 10 years after the 
date of the enactment of this Act, the Secretary of Energy 
shall enter into an agreement with the National Academy 
of Sciences to prepare a report relating to the carbon fee 
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(5) make findings and recommendations to 
Federal departments and agencies and to Congress 
on actions that could be taken to reduce carbon 
emissions in the sectors of the economy in which 
carbon emissions have not decreased; 
(6) make findings and recommendations on ad-
justing regulations enacted under the Clean Air Act 
and other Federal laws that affect economic sectors 
achieving the emissions reduction targets set forth in 
section 9903 of such Code; and 
(7) provide an assessment of any other factors 
determined to be material to the program’s effi-
ciency and effectiveness in achieving the goals set 
forth in this act. 
(c) REPORT MADE PUBLICLY AVAILABLE.—Not later 
than 10 years after the date of the enactment of this Act, 
the Secretary of Energy shall submit to Congress the re-
port required under subsection (a). Such report shall be 
made electronically available to the public and open to 
public comment for at least 60 days before the final sub-
mission to Congress. 
SEC. 7. IMPACT OF CARBON FEE ON BIOMASS USE AND 
CARBON SINKS. 
(a) STUDY OF BIOMASS.—The Secretary of Energy 
shall enter into an agreement with the National Academy 
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of Sciences and the Administrator of the Environmental 
Protection Agency to conduct a study, make recommenda-
tions, and submit a report regarding the impact of the 
carbon fee on the use of biomass as an energy source and 
the resulting impacts on carbon sinks and biodiversity. 
(b) STUDY REQUIREMENTS.—The study conducted 
under subsection (a) by the National Academy of Sciences 
shall include analysis, documentation, and determinations 
on— 
(1) the carbon fee and its impact on the use of 
biomass as an energy source and greenhouse gas 
emissions from the use of biomass as an energy 
source; 
(2) the impacts of the use of biomass as an en-
ergy source on carbon sinks and biodiversity; and 
(3) the various types of biomass that are being 
used as an energy source. 
(c) RECOMMENDATIONS.—Based on the findings and 
conclusions of the study, the National Academy of 
Sciences shall make recommendations to Federal depart-
ments and agencies and to Congress. The recommenda-
tions shall include any actions that should be taken to 
mitigate impacts of the carbon fee on— 
(1) increasing greenhouse gas emissions from 
the use of biomass as an energy source; and 
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(2) degradation of carbon sinks and biodiversity 
relating to the use of biomass as an energy source. 
(d) REPORT.—The National Academy of Sciences 
shall prepare a report that includes any findings and rec-
ommendations made pursuant to this section and, not 
later than 18 months after the date of the enactment of 
this Act, make such report electronically available to the 
public. 
SEC. 8. AMENDMENTS TO THE CLEAN AIR ACT. 
(a) IN GENERAL.—Title III of the Clean Air Act (42 
U.S.C. 7601) is amended by adding at the end the fol-
lowing: 
‘‘SEC. 330. SUSPENSION OF REGULATION OF FUELS AND 
EMISSIONS BASED ON GREENHOUSE GAS EF-
FECTS. 
‘‘(a) FUELS.—Unless specifically authorized in sec-
tion 202, 211, 213, or 231 or this section, if a carbon 
fee is imposed by section 9902 or 9908 of the Internal 
Revenue Code of 1986 with respect to a covered fuel, the 
Administrator shall not enforce any rule limiting the emis-
sion of greenhouse gases from the combustion of that fuel 
under this Act (or impose any requirement on any State 
to limit such emission) on the basis of the emission’s 
greenhouse gas effects. 
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‘‘(b) EMISSIONS.—Unless specifically authorized in 
section 202, 211, 213, or 231 or this section, if a fee is 
imposed by section 9904 of the Internal Revenue Code of 
1986 with respect to a fluorinated greenhouse gas, the Ad-
ministrator shall not enforce any rule limiting such gas 
under this Act (or impose any requirement on any State 
to limit such gas) on the basis of the greenhouse gas ef-
fects of such gas. 
‘‘(c) AUTHORIZED REGULATION.—Notwithstanding 
subsections (a) and (b), nothing in this section limits the 
Administrator’s authority pursuant to any other provision 
of this Act— 
‘‘(1) to limit the emission of any greenhouse 
gas because of any adverse impact on health or wel-
fare other than its greenhouse gas effects; 
‘‘(2) in limiting emissions as described in para-
graph (1), to consider the collateral benefits of lim-
iting the emissions because of greenhouse gas ef-
fects; 
‘‘(3) to limit the emission of black carbon or 
any other pollutant that is not a greenhouse gas 
that the Administrator determines by rule has heat- 
trapping properties; or 
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‘‘(4) to take any action with respect to any 
greenhouse gas other than limiting its emission, in-
cluding— 
‘‘(A) monitoring, reporting, and record- 
keeping requirements; 
‘‘(B) conducting or supporting investiga-
tions; and 
‘‘(C) information collection. 
‘‘(d) EXCEPTION FOR CERTAIN GREENHOUSE GAS 
EMISSIONS.—Notwithstanding subsections (a) and (b), 
nothing in this section limits the Administrator’s authority 
to regulate greenhouse gas emissions from— 
‘‘(1) sources that— 
‘‘(A) are subject to subpart OOOO or 
OOOOa of part 60 of title 40, Code of Federal 
Regulations, as in effect or January 1, 2020; or 
‘‘(B) would be subject to such subpart 
OOOO or subpart OOOOa if such subpart ap-
plied regardless of the date on which construc-
tion, modification, or reconstruction of the 
source involved commenced; or 
‘‘(2) POTW Treatment Plants (as defined in 
section 403.3(r) of title 40, Code of Federal Regula-
tions). 
‘‘(e) SUSPENSION EXPIRATION.— 
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‘‘(1) 
DETERMINATION.—The 
Administrator 
shall make a determination by March 30, 2030, and 
no less than once every five years thereafter, based 
on the determination required by section 9903(b) of 
the Internal Revenue Code of 1986, as to whether 
cumulative greenhouse gas emissions from covered 
fuels subject to taxation under section 9902 of such 
Code during the period from calendar year 2022 
through the calendar year preceding the determina-
tion exceed the cumulative emissions for that period 
that would have occurred if the emission reduction 
targets in section 9903(a)(2) of such Code were met. 
‘‘(2) CONSEQUENCE
OF
CUMULATIVE
EMIS-
SIONS
EXCEEDANCE.—If the Administrator deter-
mines under paragraph (1) that cumulative green-
house gas emissions from covered fuels subject to 
tax under section 9902 of the Internal Revenue 
Code of 1986 exceed the cumulative emissions for 
the period covered by the determination that would 
have occurred if the emission reduction targets in 
section 9903(a)(2) of such Code were met, then the 
prohibitions in subsection (a) of this section, and in 
section 211(c)(5) of this Act, shall cease to apply. 
‘‘(f) ASSURING ENVIRONMENTAL INTEGRITY.— 
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‘‘(2) DEADLINE
FOR
FINALIZING
REGULA-
TIONS.—The Administrator shall finalize any regula-
tions required by paragraph (1) not later than two 
years after the Administrator makes the relevant de-
termination pursuant to such paragraph. 
‘‘(3) ACHIEVEMENT
OF
ADDITIONAL
REDUC-
TIONS.—Regulations issued pursuant to paragraph 
(1) shall ensure that any additional reductions re-
quired by paragraph (1)(B)(ii) are fully achieved by 
no later than eight years after the Administrator 
makes the determination pursuant to subsection 
(e)(1) described in paragraph (1). 
‘‘(g) DEFINITIONS.—In this section, the terms 
‘greenhouse gas’ and ‘greenhouse gas effects’ have the 
meanings given to those terms in section 9901 of the In-
ternal Revenue Code of 1986.’’. 
(b) NEW MOTOR VEHICLES AND NEW MOTOR VEHI-
CLE ENGINES.—Section 202(b) of the Clean Air Act (42 
U.S.C. 7521(b)) is amended— 
(1) by redesignating the second paragraph (3) 
(as redesignated by section 230(4)(C) of Public Law 
101–549 (104 Stat. 2529)) as paragraph (4); and 
(2) by adding at the end the following: 
‘‘(5) Notwithstanding subsections (a) and (b) of 
section 330, the Administrator may— 
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‘‘(A) limit the emission of any greenhouse 
gas (as defined in section 9901 of the Internal 
Revenue Code of 1986) on the basis of the 
emission’s greenhouse gas effects (as defined in 
section 9901 of the Internal Revenue Code of 
1986) from any class or classes of new motor 
vehicles or new motor vehicle engines subject to 
regulation under subsection (a)(1); and 
‘‘(B) 
grant 
a 
waiver 
under 
section 
209(b)(1) for standards for the control of 
greenhouse gas emissions.’’. 
(c) FUELS.—Section 211(c) of the Clean Air Act (42 
U.S.C. 7545(c)) is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(5) The Administrator shall not, pursuant to this 
subsection, impose on any manufacturer or processor of 
fuel any requirement for the purpose of reducing the emis-
sion of any greenhouse gas (as defined in section 9901 
of the Internal Revenue Code of 1986) produced by com-
bustion of the fuel on the basis of the emission’s green-
house gas effects (as defined in section 9901 of the Inter-
nal Revenue Code of 1986).’’. 
(d) NONROAD ENGINES AND VEHICLES EMISSIONS 
STANDARDS.—Section 213 of the Clean Air Act (42 
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U.S.C. 7547) is amended by adding at the end the fol-
lowing: 
‘‘(e) 
GREENHOUSE
GAS
EMISSIONS.—Notwith-
standing section 330(a), the Administrator may limit the 
emission of any greenhouse gas (as defined in section 
9901 of the Internal Revenue Code of 1986) on the basis 
of the emission’s greenhouse gas effects (as defined in sec-
tion 9901 of the Internal Revenue Code of 1986) from 
any nonroad engines and nonroad vehicles subject to regu-
lation under this section.’’. 
(e) AIRCRAFT EMISSION STANDARDS.—Section 231 
of the Clean Air Act (42 U.S.C. 7571) is amended by add-
ing at the end the following new subsection: 
‘‘(d) Notwithstanding subsections (a) and (b) of sec-
tion 330, the Administrator may limit the emission of any 
greenhouse gas (as defined in section 9901 of the Internal 
Revenue Code of 1986) on the basis of the emission’s 
greenhouse gas effects (as defined in section 9901 of the 
Internal Revenue Code of 1986) from any class or classes 
of aircraft engines, so long as any such limitation is not 
more stringent than the standards adopted by the Inter-
national Civil Aviation Organization.’’. 
SEC. 9. EFFECTIVE DATE. 
The amendments made by this Act shall take effect 
on the date of the enactment of this Act, except the carbon 
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fee under section 9902 of the Internal Revenue Code of 
1986 shall apply to uses, sales, or transfers more than 
270 days after the date of the enactment of this Act. 
SEC. 10. PRINCIPLE OF INTERPRETATION. 
In the case of ambiguity, the texts of this statute and 
its amending texts shall be interpreted so as to allow for 
the most effective abatement of greenhouse gas emissions. 
SEC. 11. NO PREEMPTION OF STATE LAW. 
Nothing in this legislation shall preempt or super-
sede, or be interpreted to preempt or supersede, any State 
law or regulation. 
Æ 
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