I 
118TH CONGRESS 
2D SESSION H. R. 10418 
To cap the emissions of greenhouse gases through a requirement to purchase 
carbon permits, to distribute the proceeds of such purchases to eligible 
individuals, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 16, 2024 
Mr. BEYER introduced the following bill; which was referred to the Committee 
on Energy and Commerce, and in addition to the Committee on Ways 
and Means, for a period to be subsequently determined by the Speaker, 
in each case for consideration of such provisions as fall within the juris-
diction of the committee concerned 
A BILL 
To cap the emissions of greenhouse gases through a require-
ment to purchase carbon permits, to distribute the pro-
ceeds of such purchases to eligible individuals, and for 
other purposes. 
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 ‘‘Healthy Climate and 
Family Security Act of 2024’’. 
SEC. 2. FINDINGS. 
The Congress finds the following: 
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(1) Carbon dioxide and other greenhouse gas 
emissions continue to rise. 
(2) The warming of our planet has led to more 
frequent, dangerous and expensive extreme weather 
events, including heat waves, storms, fires, droughts, 
floods and tornadoes. 
(3) A 2018 report by the Intergovernmental 
Panel on Climate Change (IPCC) recommends that 
serious efforts be made to limit global warming to 
1.5 °C, which would require that CO2 emissions fall 
by 45 percent below 2010 levels by 2030, reaching 
net zero by the middle of this century. 
(4) The atmosphere is a common resource that 
belongs equally to all. 
(5) Stabilizing the climate can and must be 
done in a way that supports vibrant economic 
growth and a thriving middle class. 
(6) Stabilizing the climate can and must be 
done in a way that supports environmental justice 
by reducing pollution affecting communities that 
have suffered disproportionately from hazards aris-
ing from the extraction and combustion of fossil 
fuels and supports community right-to-know report-
ing on emissions from fossil fuel combustion. 
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(7) Legislation to address climate change and 
accelerate the transition to a clean energy economy 
must be fair, transparent and built to last. 
SEC. 3. AUCTION OF CARBON PERMITS AND DISTRIBUTION 
OF HEALTHY CLIMATE DIVIDENDS. 
(a) IN GENERAL.—The Internal Revenue Code of 
1986 is amended by adding at the end the following new 
subtitle: 
‘‘Subtitle 
L—Auction 
of 
Carbon 
Permits 
and 
Distribution 
of 
Healthy Climate Dividends 
‘‘Chapter 101. Cap and Dividend Program Rules. 
‘‘Chapter 102. Healthy Climate Dividends. 
‘‘Chapter 103. Border Adjustments. 
‘‘CHAPTER 101—CAP AND DIVIDEND 
PROGRAM RULES 
‘‘Sec. 9901. Definitions. 
‘‘Sec. 9902. Carbon permits. 
‘‘Sec. 9903. Auctions. 
‘‘Sec. 9904. Compliance obligation. 
‘‘Sec. 9905. Penalty for noncompliance. 
‘‘Sec. 9906. Transfers. 
‘‘Sec. 9907. Banking and borrowing. 
‘‘Sec. 9908. Environmental justice. 
‘‘SEC. 9901. DEFINITIONS. 
‘‘For purposes of this subtitle: 
‘‘(1) ADMINISTRATOR.—The term ‘Adminis-
trator’ means the Administrator of the Environ-
mental Protection Agency. 
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‘‘(2) CARBON PERMIT.—The term ‘carbon per-
mit’ means a carbon permit established by the Sec-
retary under section 9902(a). 
‘‘(3) COVERED ENTITY.—The term ‘covered en-
tity’ means— 
‘‘(A) in the case of crude oil— 
‘‘(i) any producer of crude oil oper-
ating in the United States, and 
‘‘(ii) any importer of crude oil, petro-
leum, or any petroleum product into the 
United States, 
‘‘(B) in the case of coal— 
‘‘(i) any coal mine operating in the 
United States, and 
‘‘(ii) any importer of coal into the 
United States, and 
‘‘(C) in the case of natural gas— 
‘‘(i) any entity required to submit a 
report to the Energy Information Agency 
on Form 176 by reason of delivering nat-
ural gas to an end user, and 
‘‘(ii) any natural gas processor not de-
scribed in clause (i) with respect to sales of 
natural gas in the United States. 
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‘‘(4) COVERED FUEL.—The term ‘covered fuel’ 
means crude oil, natural gas, coal, or any other 
product derived therefrom for use as a combustible 
fuel offered for sale in United States markets. 
‘‘(5) CRUDE OIL.—The term ‘crude oil’ includes 
crude oil condensates, natural gasoline, shale oil, any 
bitumen or bituminous mixture, any oil derived from 
a bitumen or bituminous mixture, and any oil de-
rived from kerogen-bearing sources. 
‘‘(6) FAIR
MARKET
VALUE.—The term ‘fair 
market value’ means the average auction price for 
carbon permits during the 4 quarters immediately 
preceding a failure to surrender, when required 
under section 9904, the required number of carbon 
permits under such section. 
‘‘(7) STATE.—The term ‘State’ means the sev-
eral States, the District of Columbia, the Common-
wealth of Puerto Rico, the United States Virgin Is-
lands, Guam, American Samoa, the Commonwealth 
of the Northern Mariana Islands, and any other 
commonwealth, territory, or possession of the United 
States. 
‘‘(8) VINTAGE YEAR.—The term ‘vintage year’ 
means the calendar year for which a carbon permit 
is established under section 9902. 
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‘‘(9) CO-POLLUTANT.— The term ‘co-pollutant’ 
means— 
‘‘(A) any criteria pollutant for which there 
are national ambient air quality standards 
under section 109 of the Clean Air Act (42 
U.S.C. 7409), and 
‘‘(B) any precursor to such a criteria pol-
lutant which is released in fossil fuel combus-
tion. 
‘‘(10) FRONTLINE
COMMUNITIES.—The term 
‘frontline communities’ means locations in which mi-
nority populations and low-income populations in the 
United States and its territories and possessions, the 
District of Columbia, the Commonwealth of Puerto 
Rico, and the Commonwealth of the Mariana Islands 
are exposed to disproportionately high and adverse 
human health or environmental effects of air pollu-
tion. 
‘‘SEC. 9902. CARBON PERMITS. 
‘‘(a) IN GENERAL.—The Secretary, in consultation 
with the Administrator, shall establish a separate quantity 
of carbon permits for calendar year 2025 and each cal-
endar year thereafter, as set forth under subsection (b). 
‘‘(b) EMISSIONS REDUCTION SCHEDULE.— 
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‘‘(iii) 2038 shall be equal to 60 per-
cent less than the number of metric tons 
of carbon dioxide emitted in the United 
States in 2015, 
‘‘(iv) 2044 shall be equal to 80 per-
cent less than the number of metric tons 
of carbon dioxide emitted in the United 
States in 2015, and 
‘‘(v) 2050 shall be equal to 90 percent 
less than the number of metric tons of car-
bon dioxide emitted in the United States in 
2015. 
‘‘(3) REPORTS.— 
‘‘(A) CALENDAR YEAR 2050.—In 2050 the 
Secretary, after consultation with the Adminis-
trator, shall submit a report to Congress mak-
ing recommendations concerning the program 
established under this subtitle for years after 
2050, including the quantity of carbon permits 
to be established and any reductions that may 
be necessary to ensure a net zero carbon econ-
omy and a healthy climate. 
‘‘(B) AVERTING CATASTROPHIC CLIMATIC 
IMPACT.—Not later than 4 years after the date 
of the enactment of this section, and every 4 
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years thereafter, the Secretary shall report to 
Congress on any recommended revisions to the 
decadal targets under paragraph (2) and the 
basis for those recommendations if the Sec-
retary, after consultation with the Adminis-
trator, determines the emissions reductions tar-
gets under this subsection should be further 
tightened in order to— 
‘‘(i) reach a net-zero carbon economy 
by 2050, or 
‘‘(ii) avert catastrophic climate im-
pacts. 
‘‘(c) IDENTIFICATION
NUMBERS.—The Secretary 
shall assign to each carbon permit established under sub-
section (a) a unique identification number that includes 
the vintage year for that carbon permit. 
‘‘(d) LEGAL STATUS OF CARBON PERMITS.— 
‘‘(1) IN GENERAL.—A carbon permit does not 
constitute a property right. 
‘‘(2) TERMINATION OR LIMITATION.—Nothing 
in this subtitle or any other provision of law shall be 
construed to limit or alter the authority of the 
United States, including the Secretary acting pursu-
ant to statutory authority, to terminate or limit a 
carbon permit. 
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‘‘(3) OTHER PROVISIONS UNAFFECTED.—Noth-
ing in this subtitle relating to carbon permits issued 
under this section shall affect the application of any 
other provision of law to a covered entity (including 
the Clean Air Act), or the responsibility for a cov-
ered entity to comply with any such provision of law. 
Regional and State greenhouse gas initiatives are 
not preempted by this subtitle. 
‘‘(e) REGULATIONS.—Not later than December 31, 
2025, the Secretary shall promulgate regulations to carry 
out the provisions of this subtitle. 
‘‘SEC. 9903. AUCTIONS. 
‘‘(a) PERIODIC AUCTIONS.—The Secretary shall con-
duct periodic public auctions of carbon permits established 
under section 9902(a). The Secretary shall conduct at 
least 1 such auction in each calendar quarter of each year 
for which carbon permits are established, and shall dis-
tribute the available permits for each such year pro rata 
among the quarters of such year. 
‘‘(b) AUCTION RULES.—The Secretary shall— 
‘‘(1) limit auction participation only to covered 
entities, 
‘‘(2) establish a limit on the amount of carbon 
permits that can be purchased by a single entity at 
each auction and an aggregate limit on the total 
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amount of permits that can be held by a single enti-
ty at any one time that— 
‘‘(A) reflects anticipated sector and partici-
pant demand, 
‘‘(B) prevents speculation, manipulation, 
or hoarding of permits, and 
‘‘(C) does not interfere with normal mar-
ket competition, and 
‘‘(3) set a minimum permit price at the initial 
auction of $40 per ton of carbon dioxide that will be 
released when the covered fuel is burned, increase 
this minimum price by $10 in each successive year 
and adjust for inflation, and have the authority to 
set higher minimum permit prices. 
‘‘(c) UNSOLD PERMITS.—Any carbon permit unsold 
at the auction at which it is offered shall expire. 
‘‘SEC. 9904. COMPLIANCE OBLIGATION. 
‘‘(a) IN GENERAL.—Not later than April 1, 2025, 
and April 1 of each year thereafter, each covered entity 
shall surrender to the Secretary a quantity of carbon per-
mits at least as great as the number of metric tons of 
carbon dioxide that the Secretary, in consultation with the 
Administrator, determines would be emitted by the com-
bustion of covered fuels with respect to which the covered 
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entity made the first sale in United States markets during 
the previous calendar year. 
‘‘(b) USE TREATED AS SALE.—For purposes of sub-
section (a), consumption for an emitting use by the cov-
ered entity of covered fuels produced by the covered entity 
shall be treated as a first sale. 
‘‘SEC. 9905. PENALTY FOR NONCOMPLIANCE. 
‘‘(a) IN GENERAL.—Any covered entity that fails for 
any year to surrender, by the deadline described in section 
9904, one or more of the carbon permits due pursuant 
to such section shall be required to surrender permits in 
order to meet this past due obligation and shall be liable 
for payment to the Secretary of a penalty in the amount 
described in subsection (b). 
‘‘(b) AMOUNT.—The amount of a penalty required to 
be paid under subsection (a) shall be equal to the product 
obtained by multiplying— 
‘‘(1) the number of carbon permits that the cov-
ered entity failed to surrender by the deadline, by 
‘‘(2) 3 times the fair market value of carbon 
permits issued for emissions occurring in the cal-
endar year for which the carbon permits were due. 
‘‘(c) TIMING.—A penalty required under this section 
shall be immediately due and payable to the Secretary, 
without demand, in accordance with regulations promul-
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gated by the Secretary, which shall be issued not later 
than 1 year after the date of enactment of this subtitle. 
‘‘(d) NO EFFECT ON LIABILITY.—A penalty due and 
payable by the covered entity under this section shall not 
diminish the liability of the covered entity for any fine, 
penalty, or assessment against the covered entity for the 
same violation under any other provision of law. 
‘‘(e) PENALTY NOT DEDUCTIBLE.—No deduction 
shall be allowed under subtitle A for a penalty paid under 
this section. 
‘‘SEC. 9906. TRACKING. 
‘‘The regulations promulgated under section 9902(e) 
shall include a system for issuing, recording, holding, and 
tracking carbon permits that shall specify all necessary 
procedures and requirements for an orderly and competi-
tive functioning of the carbon permit system. Such regula-
tions shall provide for appropriate publication of the infor-
mation in the system on the internet. 
‘‘SEC. 9907. BANKING. 
‘‘(a) BANKING.—A carbon permit may be used to 
meet the compliance obligation requirements of section 
9904 for emissions only in the permit’s vintage year, the 
year prior, or the year following. At least 80 percent of 
permits used by an entity to meet its compliance obligation 
for a year must be of that year’s vintage. The Secretary 
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shall have the authority to establish stricter requirements 
for the percentage of the compliance obligation for a year 
that must be met with permits of that year’s vintage, and 
to establish penalties for failure to comply. 
‘‘(b) EXPIRATION.—A carbon permit shall expire 
when— 
‘‘(1) it is surrendered to the Secretary under 
section 9904, 
‘‘(2) it has been held by a covered entity and 
has not been surrendered to the Secretary under sec-
tion 9904 within 18 months after the end of its vin-
tage year, or 
‘‘(3) the Secretary determines by regulation 
that expiration is necessary to ensure the authen-
ticity and integrity of carbon permits or the carbon 
permit tracking system. 
‘‘SEC. 9908. ENVIRONMENTAL JUSTICE. 
‘‘(a) IN GENERAL.—This chapter shall be imple-
mented to the extent practicable to ensure that reductions 
in carbon emissions are accompanied by commensurate re-
ductions in emissions of co-pollutants from fossil fuel com-
bustion that impact frontline communities. 
‘‘(b) REPORT ON AIR QUALITY METHODS DEVELOP-
MENT.—Not later than 1 year after the date of enactment 
of this section, the Administrator shall submit to Congress 
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a report detailing efforts to increase air quality monitoring 
deployment and technical assistance at the Federal, State, 
local, and tribal level. 
‘‘(c) AIR QUALITY MONITORING IN FRONTLINE COM-
MUNITIES.—The Administrator (or the Administrator’s 
delegate) is authorized to provide for trends monitoring 
of ambient air quality in frontline communities and moni-
toring of co-pollutant emissions from sources located in 
or near such communities that impact their pollution bur-
den. Not later than 3 years after the date of the enactment 
of this section, any information from such monitors shall 
be recorded and reported at the level of monitor and pol-
lutant, and made available to the public to support effec-
tive community participation in the making of environ-
mental policies. 
‘‘(d) ENVIRONMENTAL JUSTICE GUARANTEE.—In 
cases where co-pollutant emissions impacting frontline 
communities have not declined at a rate equal to the car-
bon dioxide emissions targets established in section 
9902(b)(2), the Administrator is authorized to implement 
or promulgate additional regulatory measures to ensure 
such reductions. 
‘‘(e) ENVIRONMENTAL JUSTICE REVIEW.—Not later 
than 4 years after the date of enactment of this section, 
and annually thereafter, the Administrator shall imple-
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ment an annual review to determine frontline commu-
nities, evaluate the effects of the enactment of this chapter 
on environmental justice, and recommend further correc-
tive measures if needed. 
‘‘(f) APPROPRIATIONS.—Out of any money in the 
Treasury not otherwise appropriated, there shall be appro-
priated such sums as are necessary to carry out the pur-
poses of this section, to remain available until expended. 
‘‘CHAPTER 102—HEALTHY CLIMATE 
DIVIDENDS 
‘‘Sec. 9911. Healthy Climate Trust Fund. 
‘‘Sec. 9912. Healthy Climate Dividend Payments. 
‘‘Sec. 9913. Transparency. 
‘‘SEC. 9911. HEALTHY CLIMATE TRUST FUND. 
‘‘(a) ESTABLISHMENT.—There is established in the 
Treasury of the United States a trust fund to be known 
as the ‘Healthy Climate Trust Fund’, consisting of such 
amounts as may be appropriated to such trust fund as 
provided for in this section. 
‘‘(b) TRANSFERS.— 
‘‘(1) PROCEED
AMOUNTS.—There are appro-
priated to the Healthy Climate Trust Fund amounts 
equivalent to funds received as proceeds under sec-
tion 9903. 
‘‘(2) PENALTY
AMOUNTS.—There are appro-
priated to the Healthy Climate Trust Fund amounts 
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equivalent to funds received as penalties under sec-
tion 9905. 
‘‘(c) EXPENDITURES.— 
‘‘(1) ADMINISTRATIVE EXPENSES.—Out of any 
amounts in the Treasury not otherwise appropriated, 
there shall be appropriated such sums as are nec-
essary to pay the administrative expenses necessary 
to carry out this chapter. 
‘‘(2) 
HEALTHY
CLIMATE
DIVIDEND
PAY-
MENTS.—Amounts in the Healthy Climate Trust 
Fund not used under paragraph (1) for any month 
shall be available for making Healthy Climate Divi-
dend Payments under section 9912. 
‘‘SEC. 9912. HEALTHY CLIMATE DIVIDEND PAYMENTS. 
‘‘(a) IN GENERAL.—For purposes of this section: 
‘‘(1) 
HEALTHY
CLIMATE
DIVIDEND
PAY-
MENT.—The term ‘Healthy Climate Dividend Pay-
ment’ means the individual pro rata share, as deter-
mined by the Secretary, of amounts available for any 
quarter in the Healthy Climate Trust Fund under 
section 9911(c)(2). The amounts so available for any 
quarter shall be equal to the proceeds from auctions 
conducted under section 9903 in the preceding cal-
endar quarter. 
‘‘(2) ELIGIBLE INDIVIDUAL.— 
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‘‘(A) IN GENERAL.—The term ‘eligible in-
dividual’ means, with respect to any quarter, 
any individual with a valid social security num-
ber (other than a nonresident alien individual) 
who is lawfully present in the United States for 
such quarter, as determined and verified by the 
Secretary in consultation with any other Fed-
eral entity the Secretary determines appro-
priate. 
‘‘(B) OPT OUT.—An individual may elect 
not to be treated as an eligible individual. 
‘‘(b) PAYMENT OF HEALTHY CLIMATE DIVIDEND.— 
From amounts made available under section 9911(c)(2), 
the Secretary shall make a Healthy Climate Dividend Pay-
ment not later than the end of the calendar quarter fol-
lowing the calendar quarter in which such amounts are 
appropriated to the Healthy Climate Trust Fund under 
section 9911 to each eligible individual for that quarter. 
Such payments shall be made by electronic means to the 
maximum extent practicable. 
‘‘(c) EXCLUSION FROM GROSS INCOME.—Gross in-
come shall not include any Healthy Climate Dividend paid 
under this section. 
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‘‘(d) REGULATIONS.—The Secretary shall prescribe 
such regulations and other guidance as may be necessary 
or appropriate to carry out this section. 
‘‘SEC. 9913. TRANSPARENCY. 
‘‘(a) REPORT TO CONGRESS.—Not later than June 
30, 2026, and at least annually thereafter, the Secretary 
shall transmit to Congress a report accounting for the dis-
position of amounts in the Healthy Climate Trust Fund 
in the previous calendar year. 
‘‘(b) HEALTHY CLIMATE TRUST FUND WEBSITE.— 
Not later than 90 days after the date of the enactment 
of this subtitle, the Secretary shall establish and maintain 
a website to provide the public with information on the 
disposition of any amounts in the Healthy Climate Trust 
Fund. 
‘‘CHAPTER 103—BORDER ADJUSTMENTS 
‘‘Sec. 9921. Carbon equivalency fee. 
‘‘Sec. 9922. Definitions. 
‘‘Sec. 9923. Sense of Congress. 
‘‘SEC. 9921. CARBON EQUIVALENCY FEE. 
‘‘(a) IMPORTS.—The Secretary shall impose carbon 
equivalency fees to be collected by the Commissioner re-
sponsible for U.S. Customs and Border Control on imports 
of carbon-intensive goods. The amount of the carbon 
equivalency fee shall be equal to the cost that domestic 
producers of a comparable carbon-intensive good incur as 
a result of— 
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‘‘(1) prices paid in the acquisition of carbon 
permits by covered entities under this subtitle, and 
‘‘(2) carbon equivalency fees paid by importers 
of carbon-intensive goods used in the production of 
the comparable carbon-intensive good. 
‘‘(b) PAYMENTS
TO EXPORTERS.—The Secretary 
shall pay without interest to entities exporting from the 
United States carbon-intensive goods produced in the 
United States. The amount of the payment shall be equal 
to the cost that domestic producers of the carbon-intensive 
good incur as a result of— 
‘‘(1) prices paid in the acquisition of carbon 
permits by covered entities under this subtitle, and 
‘‘(2) carbon equivalency fees paid by importers 
of carbon-intensive goods used in the production of 
the comparable carbon-intensive good. 
‘‘(c) EXPIRATION.—This section shall cease to have 
effect at such time as and to the extent that— 
‘‘(1) an international agreement requiring coun-
tries that emit greenhouse gases and produce car-
bon-intensive goods for export markets to adopt 
equivalent measures comes into effect, or 
‘‘(2) the country of export has implemented 
equivalent measures, as determined by the Sec-
retary, in consultation with the Secretary of State. 
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‘‘SEC. 9922. DEFINITIONS. 
‘‘In this chapter: 
‘‘(1) CARBON-INTENSIVE
GOOD.—The term 
‘carbon-intensive good’ means a good that, as identi-
fied by the Secretary, in consultation with the Ad-
ministrator, by rule— 
‘‘(A) is a primary product, or 
‘‘(B) is a manufactured item in which one 
or more primary products are inputs and the 
cost of production of which in the United States 
is significantly increased by reason of the re-
quirements under this subtitle. 
‘‘(2) PRIMARY PRODUCT.—The term ‘primary 
product’ means— 
‘‘(A) iron, steel, steel mill products (includ-
ing pipe and tube), aluminum, cement, glass 
(including flat, container, and specialty glass 
and fiberglass), pulp, paper, chemicals, or in-
dustrial ceramics, and 
‘‘(B) any other manufactured product that 
the Secretary, in consultation with the Adminis-
trator, determines— 
‘‘(i) is sold for purposes of further 
manufacture, and 
‘‘(ii) generates, in the course of the 
manufacture of the product, direct and in-
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direct greenhouse gas emissions that are 
comparable (on an emissions-per-dollar of 
output basis) to emissions generated in the 
manufacture or production of a primary 
product identified in subparagraph (A). 
‘‘(3) EQUIVALENT MEASURE.—The term ‘equiv-
alent measure’ means a tax, or other regulatory re-
quirement that imposes a cost, on manufacturers of 
carbon-intensive goods located outside the United 
States, by reason of greenhouse gas emissions in the 
production of such goods by such manufacturers, ap-
proximately equal to the cost imposed by this sub-
title on manufacturers of comparable carbon-inten-
sive goods located in the United States. 
‘‘SEC. 9923. SENSE OF CONGRESS. 
‘‘It is the sense of Congress that the United States 
should work proactively under the United Nations Frame-
work Convention on Climate Change and in other appro-
priate fora, to establish binding agreements committing all 
major greenhouse gas emitting countries and countries 
with globally competitive producers of carbon-intensive 
goods to contribute equitably to the reduction of global 
greenhouse gas emissions on a schedule and order of mag-
nitude necessary to stabilize the climate.’’. 
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(b) CLERICAL AMENDMENT.—The table of subtitles 
for the Internal Revenue Code of 1986 is amended by add-
ing at the end the following new item: 
‘‘Subtitle L. Auction of Carbon Permits and Distribution of Healthy Climate 
Dividends.’’. 
SEC. 4. NON-AUCTION GREENHOUSE GASES. 
(a) DEFINITIONS.—In this section: 
(1) The term ‘‘Administrator’’ means the Ad-
ministrator of the Environmental Protection Agency. 
(2) The term ‘‘non-auction greenhouse gas’’ re-
fers to the gases included on the list in effect under 
subsection (b). 
(b) LIST OF NON-AUCTION GREENHOUSE GASES.— 
(1) INITIAL LIST.—Not later than 2 years after 
the date of the enactment of this Act, the Adminis-
trator, by rule, shall finalize and publish a list 
that— 
(A) consists of the anthropogenically emit-
ted gases that are determined by the Adminis-
trator to contribute to global warming; and 
(B) excludes gases to the extent they are— 
(i) carbon dioxide emitted by the com-
bustion of a covered fuel (as such term is 
defined in section 9901 of the Internal 
Revenue Code of 1986, as added by section 
3(a) of this Act); or 
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