I 
113TH CONGRESS 
2D SESSION 
H. R. 5307 
To amend the Internal Revenue Code of 1986 to reduce carbon pollution 
in the United States, invest in the Nation’s infrastructure, and cut 
taxes for working Americans. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 31, 2014 
Mr. LARSON of Connecticut introduced the following bill; which was referred 
to the Committee on Ways and Means, and in addition to the Committee 
on 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 amend the Internal Revenue Code of 1986 to reduce 
carbon pollution in the United States, invest in the Na-
tion’s infrastructure, and cut taxes for working Ameri-
cans. 
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 ‘‘America’s Energy Se-
curity Trust Fund Act of 2014’’. 
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SEC. 2. TAX ON CARBON DIOXIDE CONTENT OF CERTAIN 
SUBSTANCES. 
(a) IN GENERAL.—Chapter 38 of the Internal Rev-
enue Code of 1986 (relating to environmental taxes) is 
amended by adding at the end thereof the following new 
subchapter: 
‘‘Subchapter E—Tax on Carbon Dioxide 
Content of Certain Substances 
‘‘Sec. 4691. Imposition of tax. 
‘‘Sec. 4692. Refunds or credits. 
‘‘Sec. 4693. Border adjustments. 
‘‘Sec. 4694. Definitions and special rules. 
‘‘SEC. 4691. IMPOSITION OF TAX. 
‘‘(a) IN GENERAL.—There is hereby imposed a tax 
on any taxable carbon substance sold by the manufacturer, 
producer, or importer thereof. 
‘‘(b) AMOUNT OF TAX.— 
‘‘(1) IN GENERAL.—The amount of tax imposed 
by subsection (a) on any taxable carbon substance 
shall be the applicable amount per ton of carbon di-
oxide content of such substance, as determined by 
the Secretary in consultation with the Secretary of 
Energy. 
‘‘(2) FRACTIONAL PART OF TON.—In the case 
of a fraction of a ton, the tax imposed by subsection 
(a) shall be the same fraction of the amount of such 
tax imposed on a whole ton. 
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‘‘(3) APPLICABLE AMOUNT.—For purposes of 
paragraph (1)— 
‘‘(A) CALENDAR YEAR 2016.—The applica-
ble amount for calender year 2016 is $10. 
‘‘(B) YEARS AFTER 2016.—For a calendar 
year after 2016, the applicable amount is the 
sum of— 
‘‘(i) the amount in effect under this 
paragraph for the preceding calendar year, 
plus 
‘‘(ii) $10. 
‘‘(c) SUBSTANCE TAXED ONLY ONCE.—No tax shall 
be imposed by subsection (a) with respect to a taxable car-
bon substance if the person who would be liable for such 
tax establishes that a prior tax imposed by such section 
has been imposed with respect to such product. 
‘‘(d) EXEMPTION FOR EXPORTS.— 
‘‘(1) TAX-FREE SALES.— 
‘‘(A) IN GENERAL.—No tax shall be im-
posed under subsection (a) on the sale by the 
manufacturer or producer of any taxable carbon 
substance for export or for resale by the pur-
chaser to a second purchaser for export. 
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