‘‘(3) NATURAL
GAS
MEASURED
BY
ENERGY 
CONTENT.—In the case of natural gas, subpara-
graphs (A) and (B) of paragraph (1) shall each be 
applied by substituting ‘energy content’ for ‘volume’. 
‘‘(4) 
METHANE
ADJUSTMENT
SUBSTANCES 
PRODUCED OR EXTRACTED IN MORE THAN 1 COUN-
TRY.—The Secretary shall provide rules for deter-
mining the tax imposed under paragraph (1) with 
respect to a substance which was produced or ex-
tracted in more than 1 country which determines 
such tax on the basis of the proportion of the pro-
duction or extraction that occurred in such country. 
‘‘(c) METHANE ADJUSTMENT SUBSTANCE.— 
‘‘(1) IN GENERAL.—The term ‘methane adjust-
ment substance’ means petroleum and natural gas. 
‘‘(2) RECOMMENDATION OF ADDITIONAL SUB-
STANCES.— 
‘‘(A) IN GENERAL.—Not later than 2 years 
after the date of the enactment of this Act, and 
each 2 years thereafter, the Secretary shall sub-
mit a written report to Congress regarding 
whether additional substances that are reliant 
on oil and natural gas as a feedstock in indus-
trial processes, or otherwise have notable em-
bodied methane emissions, should be added to 
VerDate Sep 11 2014 
23:21 Aug 14, 2024
Jkt 049200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H8962.IH
H8962
kjohnson on DSK7ZCZBW3PROD with $$_JOB
the list of methane adjustment substances sub-
ject to this section. 
‘‘(B) CONSULTATION.—In assessing sub-
stances to recommend for inclusion under this 
paragraph, the Secretary shall consult with the 
United States International Trade Commission 
and International Trade Administration on 
whether domestic producers, including specific 
domestic facilities, have lower embodied meth-
ane emissions than producers in other coun-
tries. 
‘‘(C) ANALYSIS.—Each report under this 
paragraph shall be accompanied by an analysis 
prepared by the Secretary, after consultation 
with the United States International Trade 
Commission, of— 
‘‘(i) the effect of the proposed expan-
sion of the methane border adjustment 
mechanism to include additional sub-
stances, and 
‘‘(ii) the economic, employment, and 
environmental costs in the United States if 
the expansion does not include such addi-
tional substances. 
‘‘(d) ESTIMATES.— 
VerDate Sep 11 2014 
23:21 Aug 14, 2024
Jkt 049200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H8962.IH
H8962
kjohnson on DSK7ZCZBW3PROD with $$_JOB
‘‘(1) IN GENERAL.—The total methane emis-
sions charge, and the amount described in sub-
section (b)(1)(B), with respect to any foreign coun-
try for any calendar year shall be determined by the 
Secretary on the basis of publicly available informa-
tion. 
‘‘(2) 
ESTABLISHMENT
OF
INTERNATIONAL 
BODY TO COLLECT AND REPORT INFORMATION.— 
The Secretary, in consultation with the governments 
of countries that are major importers and exporters 
of methane adjustment substances, shall facilitate 
the establishment of an international body respon-
sible for providing for international consultations for 
the establishment of interoperable standards, estab-
lishing a multi-stage certification process to track 
emissions throughout supply chains, and collecting 
and reporting data related to methane emissions. 
Standards developed under the preceding sentence 
shall be updated not less frequently than every 2 
years. 
‘‘(e) ALTERNATIVE TAX BASED ON SUPPLY CHAIN 
EMISSIONS.— 
‘‘(1) IN GENERAL.—In the case of any methane 
adjustment substance which meets the requirements 
of paragraph (2), the Secretary shall establish an al-
VerDate Sep 11 2014 
23:21 Aug 14, 2024
Jkt 049200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H8962.IH
H8962
kjohnson on DSK7ZCZBW3PROD with $$_JOB
ternative method (in lieu of subsection (b)) for de-
termining the amount of tax imposed under sub-
section (a) which takes into account only such sub-
stance’s pro rata share of the charges which would 
be imposed under section 136 of the Clean Air Act 
(42 U.S.C. 7436) (determined with the adjustments 
described in subparagraphs (A) and (B) of sub-
section (b)(2)) with respect to facilities in the supply 
chain of such methane adjustment substance. 
‘‘(2) REQUIREMENTS.—The requirements of 
this paragraph are met if— 
‘‘(A) the importer of the methane adjust-
ment substance provides the Secretary such in-
formation as the Secretary may require to de-
termine all of the facilities in the supply chain 
of such substance, the total production of such 
facilities, and the relevant methane emissions 
therefrom, and 
‘‘(B) each country in which such facilities 
are located is a country with which the Cus-
toms-Trade Partnership Against Terrorism (C– 
TPAT) has signed mutual recognition arrange-
ments with the customs administration of such 
country.’’. 
VerDate Sep 11 2014 
23:21 Aug 14, 2024
Jkt 049200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H8962.IH
H8962
kjohnson on DSK7ZCZBW3PROD with $$_JOB
(b) INTERNATIONAL COOPERATION
ON METHANE 
BORDER ADJUSTMENT MECHANISMS.—The Secretary of 
the Treasury (or the Secretary’s delegate) shall encourage 
the 10 countries with the highest oil and gas imports that 
do not yet have methane border adjustment mechanisms 
to— 
(1) implement equally stringent border adjust-
ment mechanisms, and 
(2) participate in the creation of the inter-
national body referred to in section 4691(d)(2) of 
the Internal Revenue Code of 1986, as added by this 
section. 
(c) 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—METHANE BORDER ADJUSTMENT MECHANISM’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to sales and uses after December 
31, 2024. 
Æ 
VerDate Sep 11 2014 
23:21 Aug 14, 2024
Jkt 049200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6301
E:\BILLS\H8962.IH
H8962
kjohnson on DSK7ZCZBW3PROD with $$_JOB