I 
116TH CONGRESS 
1ST SESSION H. R. 3966 
To amend the Internal Revenue Code of 1986 to reduce social security 
payroll taxes and to reduce the reliance of the United States economy 
on carbon-based energy sources, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 25, 2019 
Mr. LIPINSKI (for himself and Mr. ROONEY of Florida) introduced the fol-
lowing bill; which was referred to the Committee on Ways and Means, 
and in addition to the Committees on Energy and Commerce, Education 
and Labor, and Rules, 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 
social security payroll taxes and to reduce the reliance 
of the United States economy on carbon-based energy 
sources, 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 ‘‘Raise Wages, Cut Car-
bon Act of 2019’’. 
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SEC. 2. INCREASE IN THE LOW-INCOME HOUSING ENERGY 
ASSISTANCE PROGRAM AND THE WEATHER-
IZATION ASSISTANCE PROGRAM. 
(a) LIHEAP.—On October 1, 2020, and each Octo-
ber 1 thereafter, there shall be made available, without 
further appropriation or fiscal year limitation, to carry out 
the Low-Income Home Energy Assistance Act of 1981 (42 
U.S.C. 8621 et seq.) an amount equal to 5 percent of the 
net revenues received in the Treasury during the previous 
fiscal year from the taxes imposed under parts II, III, and 
IV of subchapter E of chapter 38 of the Internal Revenue 
Code of 1986. 
(b) WEATHERIZATION ASSISTANCE PROGRAM.—On 
October 1, 2020, and each October 1 thereafter, there 
shall be made available, without further appropriation or 
fiscal year limitation, to carry out the weatherization as-
sistance program established under part A of title IV of 
the Energy Conservation and Production Act (42 U.S.C. 
6861 et seq.) an amount equal to 1 percent of the net 
revenues received in the Treasury during the previous fis-
cal year from the taxes imposed under parts II, III, and 
IV of subchapter E of chapter 38 of the Internal Revenue 
Code of 1986. 
(c) ADDITION TO OTHER AMOUNTS.—Amounts made 
available pursuant to this section shall be in addition to 
other amounts made available to carry out the Low-In-
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come Home Energy Assistance Act of 1981 and the 
weatherization assistance program established under part 
A of title IV of the Energy Conservation and Production 
Act for the fiscal year involved. 
SEC. 3. DISTRIBUTION OF CERTAIN ESTIMATED REVENUES 
TO SOCIAL SECURITY BENEFICIARIES. 
Not later than October 1 of each fiscal year beginning 
with fiscal year 2020, the Commissioner of Social Security 
shall pay an amount out of the general fund of the Treas-
ury, equal to 10 percent of the net revenues received in 
the Treasury during the previous fiscal year from the 
taxes imposed under parts II, III, and IV of subchapter 
E of chapter 38 of the Internal Revenue Code of 1986, 
to be distributed equally among each individual entitled 
to monthly insurance benefits under title II of the Social 
Security Act (42 U.S.C. 401 et seq.) or to an annuity 
under section 2 of the Railroad Retirement Act of 1974 
for the 1st month in such fiscal year. 
SEC. 4. REDUCTION OF CERTAIN SOCIAL SECURITY TAXES; 
TAX ON COMBUSTIBLE FOSSIL FUELS. 
(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: 
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‘‘Subchapter E—Reduction of Certain Social 
Security Taxes; Tax on Combustible Fos-
sil Fuels 
‘‘PART I—REDUCTION OF CERTAIN SOCIAL SECURITY TAXES 
‘‘PART II—TAX ON COMBUSTIBLE FOSSIL FUELS 
‘‘PART III—TAX ON CERTAIN ADDITIONAL IMPORTED PRODUCTS 
‘‘PART IV—TAX ON FLUORINATED GREENHOUSE GASES 
‘‘PART V—SUPERMAJORITY REQUIRED TO CHANGE REVENUE NEUTRALITY 
‘‘PART I—REDUCTION OF CERTAIN SOCIAL 
SECURITY TAXES 
‘‘Sec. 4691. Social Security taxes and benefits. 
‘‘SEC. 4691. SOCIAL SECURITY TAXES AND BENEFITS. 
‘‘(a) AMOUNTS APPROPRIATED TO SOCIAL SECURITY 
TRUST FUNDS.— 
‘‘(1) IN GENERAL.—There are hereby appro-
priated to the social security trust funds an amount 
equal to the excess (if any) of— 
‘‘(A) net revenues received in the Treasury 
from the taxes imposed by parts II, III, and IV, 
over 
‘‘(B) the net expenditures from the Treas-
ury under sections 2 and 3 of the Raise Wages, 
Cut Carbon Act of 2019. 
‘‘(2) ALLOCATION
AMONG
FUNDS.—Amounts 
appropriated under paragraph (1) shall be allocated 
among such funds as determined appropriate by the 
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Managing Trustee of the Board of Trustees of the 
Trust Funds (within the meaning of title II of the 
Social Security Act), in cooperation with the Rail-
road Retirement Board. 
‘‘(b) REDUCTION
IN CERTAIN SOCIAL SECURITY 
TAXES.— 
‘‘(1) IN GENERAL.—The rate of each specified 
social security tax for each calendar year (deter-
mined without regard to this section) shall be re-
duced by the number of percentage points equal 
to— 
‘‘(A) such rate, multiplied by 
‘‘(B) the reduction percentage determined 
by the Secretary for such calendar year. 
‘‘(2) REDUCTION PERCENTAGE.—The reduction 
percentage determined by the Secretary under para-
graph (1) for any calendar year shall be the percent-
age which the Secretary estimates will result in ag-
gregate appropriations into each trust fund equal to 
the amount which would (without regard to this sec-
tion) be appropriated to each trust fund for such 
calendar year. 
‘‘(c) DEFINITIONS.—For purposes of this sub-
chapter— 
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‘‘(1) SPECIFIED SOCIAL SECURITY TAX.—The 
term ‘specified social security tax’ means— 
‘‘(A) the tax imposed by section 3101(a) 
(and so much of the tax imposed by section 
3201(a) or section 3211(a) as is determined by 
reference to the tax imposed by section 
3101(a)), and 
‘‘(B) 
1⁄2
the tax imposed by section 
1401(a). 
‘‘(2) SOCIAL
SECURITY
TRUST
FUND.—The 
term ‘social security trust fund’ means— 
‘‘(A) the Federal Old-Age and Survivors 
Insurance Trust Fund established by section 
201(a) of the Social Security Act, 
‘‘(B) the Federal Disability Insurance 
Trust Fund established by section 201(b) of the 
Social Security Act, and 
‘‘(C) the Social Security Equivalent Ben-
efit Account established under section 15A of 
the Railroad Retirement Act of 1974. 
‘‘(d) DETERMINATION BASED ON ESTIMATES.—De-
terminations under this section and sections 2 and 3 of 
the Raise Wages, Cut Carbon Act of 2019 shall be made 
on the basis of estimates by the Secretary. To the extent 
that any such determination for any period is determined 
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to have been inaccurate, such determination for the subse-
quent period shall be appropriately increased or decreased 
by the amount that the previous determination was less 
than, or in excess of, the more accurate determination. 
‘‘(e) PUBLICATION OF RATE REDUCTIONS.—Any ad-
justment under this section of social security tax rates for 
any calendar year shall be published in the Federal Reg-
ister not later than 2 months before the beginning of such 
calendar year. 
‘‘PART II—TAX ON COMBUSTIBLE FOSSIL FUELS 
‘‘Sec. 4692. Imposition of tax. 
‘‘Sec. 4693. Refunds or credits. 
‘‘Sec. 4694. Other definitions and special rules. 
‘‘SEC. 4692. 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 the carbon 
dioxide emissions potential of such substance, as de-
termined 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 
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(a) shall be the same fraction of the amount of such 
tax imposed on a whole ton. 
‘‘(3) APPLICABLE AMOUNT.— 
‘‘(A) IN GENERAL.—For purposes of this 
part, the applicable amount is— 
‘‘(i) for calendar year 2020, $40, 
‘‘(ii) for any calendar year following a 
year which is not a national emissions tar-
get attainment year, the sum of— 
‘‘(I) the product of the amount in 
effect under this subparagraph for the 
preceding calendar year and 102.5 
percent, and 
‘‘(II) the inflation adjustment 
amount determined under subpara-
graph (B), and 
‘‘(iii) for any calendar year following a 
year which is a national emissions target 
attainment year, the sum of— 
‘‘(I) the amount in effect under 
this subparagraph for the preceding 
calendar year, and 
‘‘(II) the inflation adjustment 
amount determined under subpara-
graph (B). 
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‘‘(B) INFLATION ADJUSTMENT AMOUNT.— 
‘‘(i) IN GENERAL.—The inflation ad-
justment amount for any calendar year 
shall be an amount (not less than zero) 
equal to the product of— 
‘‘(I) 
the 
amount 
determined 
under 
subparagraph 
(A)(ii)(I) 
or 
(A)(iii)(I), as applicable, for such 
year, and 
‘‘(II) the percentage by which the 
CPI for the preceding calendar year 
exceeds the CPI for the second pre-
ceding calendar year. 
‘‘(ii) CPI.—Rules similar to the rules 
of paragraphs (4) and (5) of section 1(f) 
shall apply for purposes of this paragraph. 
‘‘(C) ROUNDING.—The applicable amount 
under this subsection shall be rounded up to 
the next whole dollar amount. 
‘‘(D) NATIONAL
EMISSIONS
TARGET
AT-
TAINMENT
YEAR.—For purposes of subpara-
graph (A), a calendar year is a national emis-
sions target attainment year if the level of 
greenhouse gas emissions in the United States 
for the calendar year does not exceed 20 per-
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cent of the level of greenhouse gas emissions in 
the United States for calendar year 2005 as de-
termined by the Secretary in consultation with 
the Administrator of the Environmental Protec-
tion Agency. 
‘‘(c) TAXABLE CARBON SUBSTANCE.—For purposes 
of this subchapter, the term ‘taxable carbon substance’ 
means— 
‘‘(1) coal (including lignite and peat), 
‘‘(2) petroleum and any petroleum product (as 
defined in section 4612(a)(3)), and 
‘‘(3) natural gas, 
which is extracted, manufactured, or produced in the 
United States or entered into the United States for con-
sumption, use, or warehousing. 
‘‘(d) 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 substance. 
‘‘SEC. 4693. REFUNDS OR CREDITS. 
‘‘(a) SEQUESTERED CARBON.—Under regulations 
prescribed by the Secretary, if a person uses a taxable car-
bon substance so that the carbon associated with such sub-
stance will not be emitted, then an amount equal to the 
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amount of tax in effect under section 4692(b) with respect 
to such substance for the calendar year in which such use 
begins shall be allowed as a credit or refund (without in-
terest) to such person in the same manner as if it were 
an overpayment of tax imposed by section 4692. 
‘‘(b) PREVIOUSLY
TAXED
CARBON
SUBSTANCES 
USED TO MAKE ANOTHER TAXABLE CARBON SUB-
STANCE.—Under regulations prescribed by the Secretary, 
if— 
‘‘(1) a tax under section 4692 was paid with re-
spect to any taxable carbon substance, and 
‘‘(2) such substance was used by any person in 
the manufacture or production of any other sub-
stance which is a taxable carbon substance, 
then an amount equal to the tax so paid shall be allowed 
as a credit or refund (without interest) to such person in 
the same manner as if it were an overpayment of tax im-
posed by section 4692. In any case to which this sub-
section applies, the amount of any such credit or refund 
shall not exceed the amount of tax imposed by section 
4692 on the other taxable fuel manufactured or produced 
(or which would have been imposed by such subsection on 
such other fuel but for section 4692(d)). 
‘‘(c) EXEMPTION FOR EXPORTS.— 
‘‘(1) TAX-FREE SALES.— 
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‘‘(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. 
‘‘(B) PROOF
OF
EXPORT
REQUIRED.— 
Rules similar to the rules of section 4221(b) 
shall apply for purposes of subparagraph (A). 
‘‘(2) CREDIT OR REFUND.—If— 
‘‘(A) any person exports— 
‘‘(i) a taxable carbon substance, or 
‘‘(ii) any other product any portion of 
the cost of which is attributable to the use 
of any taxable carbon substance as an en-
ergy source for the manufacture or produc-
tion of such product, and 
‘‘(B) such person establishes to the satis-
faction of the Secretary the portion of such cost 
which is attributable to the tax under section 
4692, 
credit or refund (without interest) of such tax shall 
be allowed or made to such person. 
‘‘(3) REGULATIONS.—The Secretary shall pre-
scribe such regulations as may be necessary to carry 
out the purposes of this subsection. 
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‘‘SEC. 4694. OTHER DEFINITIONS AND SPECIAL RULES. 
‘‘(a) DEFINITIONS.—For purposes of this sub-
chapter— 
‘‘(1) UNITED
STATES.—The term ‘United 
States’ has the meaning given such term by section 
4612(a)(4). 
‘‘(2) IMPORTER.—The term ‘importer’ means 
the person entering the article for consumption, use, 
or warehousing. 
‘‘(3) TON.—The term ‘ton’ means 2,000 
pounds. In the case of any taxable carbon substance 
which is a gas, the term ‘ton’ means the amount of 
such gas in cubic feet which is the equivalent of 
2,000 pounds on a molecular weight basis. 
‘‘(b) USE TREATED AS SALE.—If any person manu-
factures, produces, or imports any taxable carbon sub-
stance and uses such substance, then such person shall 
be liable for tax under section 4692 in the same manner 
as if such substance were sold by such person. 
‘‘(c) 
SPECIAL
RULES
FOR
INVENTORY
EX-
CHANGES.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), in any case in which a manufacturer, pro-
ducer, or importer of a taxable carbon substance ex-
changes such substance as part of an inventory ex-
change with another person— 
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‘‘(A) such exchange shall not be treated as 
a sale, and 
‘‘(B) such other person shall, for purposes 
of section 4692, be treated as the manufac-
turer, producer, or importer of such substance. 
‘‘(2) 
REGISTRATION
REQUIREMENT.—Para-
graph (1) shall not apply to any inventory exchange 
unless— 
‘‘(A) both parties are registered with the 
Secretary as manufacturers, producers, or im-
porters of taxable carbon substances, and 
‘‘(B) the person receiving the taxable car-
bon substance has, at such time as the Sec-
retary may prescribe, notified the manufac-
turer, producer, or importer of such person’s 
registration number and the internal revenue 
district in which such person is registered. 
‘‘(3) INVENTORY EXCHANGE.—For purposes of 
this subsection, the term ‘inventory exchange’ means 
any exchange in which 2 persons exchange property 
which is, in the hands of each person, property de-
scribed in section 1221(a)(1). 
‘‘PART III—TAX ON CERTAIN ADDITIONAL 
IMPORTED PRODUCTS 
‘‘Sec. 4695. Imposition of tax. 
‘‘Sec. 4696. Imported taxable product. 
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‘‘SEC. 4695. IMPOSITION OF TAX. 
‘‘(a) IN GENERAL.—There is hereby imposed a tax 
on any imported taxable product sold or used by the im-
porter thereof. 
‘‘(b) AMOUNT OF TAX.—The amount of the tax im-
posed by subsection (a) with respect to any imported tax-
able product shall be the applicable amount under section 
4692 per ton on the lesser of— 
‘‘(1) the taxable carbon substances used in the 
manufacture or production of such product, or 
‘‘(2) the carbon dioxide emissions attributable 
to the manufacture or production of such product. 
‘‘(c) PROCEDURE TO CHALLENGE INFORMATION 
PROVIDED BY IMPORTER.—The Secretary shall establish 
a procedure under which interested persons may examine 
the information provided by an importer for purposes of 
this section, and bring to the attention of the Secretary 
any suspected errors in such information. 
‘‘SEC. 4696. IMPORTED TAXABLE PRODUCT. 
‘‘(a) IN GENERAL.—For purposes of this part, the 
term ‘imported taxable product’ means any article which, 
at the time of such article’s sale or use by the importer, 
is described in the same heading of the Harmonized Tariff 
Schedule of the United States as a like article produced 
in a listed industry. 
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‘‘(b) LISTED INDUSTRY.—For purposes of this sec-
tion— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the term ‘listed industry’ means any in-
dustry listed by the Administrator as being among 
the industries which, in the aggregate, account for 
95 percent of the taxable carbon substances used in 
the United States. An industry may not be omitted 
from the list under the preceding sentence if it uses 
more taxable carbon substances per unit of output 
than any industry which is so listed. 
‘‘(2) SPECIAL RULE FOR 2020 THROUGH 2022.— 
‘‘(A) 2020.—During 2020, the term ‘listed 
industry’ shall include only the 6 industries on 
the list under paragraph (1) having the highest 
average use of taxable carbon substances per 
unit of output. 
‘‘(B) 2021 AND 2022.—During 2021 and 
2022, the term ‘listed industry’ shall include 
only— 
‘‘(i) the industries described in sub-
paragraph (A), and 
‘‘(ii)(I) in the case of 2021, the 1⁄3 of 
the remaining industries on such list hav-
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ing the highest average use of taxable car-
bon substances per unit of output, or 
‘‘(II) in the case of 2022, the 2⁄3 of 
the remaining industries on such list hav-
ing the highest average use of taxable car-
bon substances per unit of output. 
‘‘(c) OTHER DEFINITIONS.—For purposes of this 
part, the terms ‘importer’, ‘taxable carbon substance’, and 
‘United States’ have the respective meanings given such 
terms by part II. 
‘‘PART IV—TAX ON FLUORINATED GREENHOUSE 
GASES 
‘‘SEC. 4697. IMPOSITION OF TAX. 
‘‘(a) FLUORINATED GAS FEE.—There is hereby im-
posed a tax on any fluorinated greenhouse gas which is 
required to be reported under part 98 of title 40, Code 
of Federal Regulations. 
‘‘(b) AMOUNT.—The tax imposed under subsection 
(a) shall be paid by the person required to so report in 
an amount equal to— 
‘‘(1) the total amount, in metric tons of CO2- 
e, of emitted fluorinated greenhouse gases (or, in the 
case of a supplier, emissions that would result deter-
mined under the rules of such part), multiplied by 
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‘‘(2) an amount equal to 10 percent of the ap-
plicable amount in effect under section 4692 for the 
calendar year of such emission. 
‘‘PART V—SUPERMAJORITY REQUIRED TO 
CHANGE REVENUE NEUTRALITY 
‘‘SEC. 4698. SUPERMAJORITY REQUIRED. 
‘‘A bill, joint resolution, amendment to a bill or joint 
resolution, or conference report that increases aggregate 
revenues under parts II, III, and IV greater than the ag-
gregate of— 
‘‘(1) the reduction in revenues under part I, 
and 
‘‘(2) the aggregate expenditures under sections 
2 and 3 of the Raise Wages, Cut Carbon Act of 
2019, 
may not be considered as passed or agreed to by the 
House of Representatives or the Senate unless so deter-
mined by a vote of not less than two-thirds of the Members 
of the House of Representatives or the Senate (as the case 
may be) voting, a quorum being present.’’. 
(b) CLERICAL AMENDMENT.—The table of sub-
chapters for chapter 38 of such Code is amended by add-
ing at the end the following new item: 
‘‘SUBCHAPTER F. REDUCTION OF SOCIAL SECURITY TAXES; TAX ON 
COMBUSTIBLE FOSSIL FUELS’’. 
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(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on January 1, 2020. 
SEC. 5. 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 tax is im-
posed by part II or III of subchapter E of chapter 38 
of the Internal Revenue Code of 1986 with respect to a 
covered fuel, the Administrator shall not enforce any rule 
limiting the emission of greenhouse gases from the com-
bustion of that fuel under this Act (or impose any require-
ment on any State to limit such emission) on the basis 
of the emission’s greenhouse gas effects. 
‘‘(b) EMISSIONS.—Unless specifically authorized in 
section 202, 211, 213, or 231 or this section, if a tax is 
imposed by part IV of subchapter E of chapter 38 of the 
Internal Revenue Code of 1986 with respect to a 
fluorinated greenhouse gas, the Administrator shall not 
enforce any rule limiting such gas under this Act (or im-
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pose any requirement on any State to limit such gas) on 
the basis of the greenhouse gas effects 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 
‘‘(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. 
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‘‘(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, 2018; 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.— 
‘‘(1) 
DETERMINATION.—The 
Administrator 
shall make a determination by March 30, 2030, and 
no less than once every five years thereafter, as to 
whether cumulative greenhouse gas emissions from 
covered fuels subject to tax under part II or III of 
subchapter E of chapter 38 of the Internal Revenue 
Code of 1986 during the period from calendar year 
2022 through the calendar year preceding the deter-
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mination exceed the cumulative emissions for that 
period that would have occurred if subsection (a) 
had not applied during such period. 
‘‘(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 part II or III of subchapter E of chapter 
38 of the Internal Revenue Code of 1986 exceed the 
cumulative emissions for the period covered by the 
determination that would have occurred if subsection 
(a) had not applied during such period, then sub-
sections (a) and (b) of this section, and the prohibi-
tion in section 211(c)(5) of this Act, shall cease to 
apply as of such determination. 
‘‘(f) ASSURING ENVIRONMENTAL INTEGRITY.— 
‘‘(1) AUTHORITY.—If the Administrator makes 
the determination described in subsection (e)(2), the 
Administrator shall— 
‘‘(A) issue such regulations as the Admin-
istrator deems necessary to bring greenhouse 
gas emissions from covered fuels subject to tax 
under part II or III of subchapter E of chapter 
38 of the Internal Revenue Code of 1986 to lev-
els that are at or below the level at which such 
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emissions would have been if subsection (a) had 
never applied, and 
‘‘(B) require in such regulations that addi-
tional reductions in greenhouse gas emissions 
are achieved to fully compensate for any 
amount by which greenhouse gas emissions 
from such fuels during the period referred to in 
subsection (e)(2) exceeded the levels at which 
such emissions would have been if subsection 
(a) had never applied. 
‘‘(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) are fully achieved by no 
later than eight years after the Administrator makes 
the determination described in subsection (e)(1). 
‘‘(g) DEFINITIONS.—In this section— 
‘‘(1) GREENHOUSE GAS.—The term ‘greenhouse 
gas’ means carbon dioxide (CO2), methane (CH4), 
nitrous oxide (N2O), sulfur hexafluoride (SF6), hy-
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drofluorocarbons (HFCs), perfluorocarbon (PFCs), 
and other gases as defined by rule of the Adminis-
trator. 
‘‘(2) GREENHOUSE
GAS
EFFECT.—The term 
‘greenhouse gas effect’ means the adverse effects of 
greenhouse gases on health or welfare caused by the 
greenhouse gas’s heat-trapping potential or its effect 
on ocean acidification.’’. 
(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— 
‘‘(A) limit the emission of any greenhouse 
gas (as defined in section 330(g)) on the basis 
of the emission’s greenhouse gas effects (as de-
fined in such section) from any class or classes 
of new motor vehicles or new motor vehicle en-
gines subject to regulation under subsection 
(a)(1); and 
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‘‘(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 330(g)) 
produced by combustion of the fuel on the basis of the 
emission’s greenhouse gas effects (as defined in such sec-
tion).’’. 
(d) NONROAD ENGINES AND VEHICLES EMISSIONS 
STANDARDS.—Section 213 of the Clean Air Act (42 
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 
330(g)) on the basis of the emission’s greenhouse gas ef-
fects (as defined in such section) from any nonroad en-
gines and nonroad vehicles subject to regulation under this 
section.’’. 
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