I 
118TH CONGRESS 
1ST SESSION H. R. 5744 
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 
SEPTEMBER 27, 2023 
Mr. CARBAJAL (for himself and Mr. PETERS) 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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Energy Innovation and 
Carbon Dividend Act of 2023’’. 
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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