I 
115TH CONGRESS 
1ST SESSION H. R. 3981 
To establish a cost of greenhouse gases for carbon dioxide, methane, and 
nitrous oxide to be used by Federal agencies, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 5, 2017 
Mr. MCEACHIN introduced the following bill; which was referred to the Com-
mittee on Oversight and Government Reform, and in addition to the 
Committee on the Judiciary, 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 establish a cost of greenhouse gases for carbon dioxide, 
methane, and nitrous oxide to be used by Federal agen-
cies, 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 ‘‘Pollution Trans-
parency Act’’. 
SEC. 2. FINDINGS. 
Congress finds that— 
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(1) sound economic and policy analyses require 
that the economic benefits of reducing climate 
change be considered together with the costs of poli-
cies and measures to reduce greenhouse gas emis-
sions; 
(2) climate change, if not addressed, is pro-
jected to inflict substantial damage on the economy 
and people of the United States; 
(3) according to the Congressional Budget Of-
fice, the Government Accountability Office, and the 
Office of Management and Budget, the impacts of 
climate change are— 
(A) costing United States taxpayers bil-
lions of dollars annually; and 
(B) putting pressure on the Federal budg-
et; 
(4) the expenditures by the Federal Govern-
ment resulting from the effects of climate change 
are projected to increase, and reducing greenhouse 
gas emissions presents an opportunity to minimize 
those expenditures; 
(5) between calendar years 2008 and 2015, the 
United States reduced carbon pollution from the en-
ergy sector by nearly 10 percent, while the economy 
grew more than 10 percent; 
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(6) more than 1,200 companies are taking the 
cost of climate change into consideration in business 
decisions; 
(7) estimates of the costs of greenhouse gases 
provide a method and measure, grounded in sci-
entific and economic research, for monetizing— 
(A) the costs of greenhouse gas emissions; 
and 
(B) the benefits of reducing greenhouse 
gas emissions; 
(8) the National Academies of Sciences, Engi-
neering, and Medicine has provided detailed rec-
ommendations for improving the estimate of the 
costs of greenhouse gases for the purpose of regu-
latory analysis; 
(9) the reduction of greenhouse gas emissions 
by other countries benefits the United States by re-
ducing climate risks to the United States, and the 
reduction of greenhouse gas emissions by the United 
States benefits other countries; 
(10) in light of the global nature of the problem 
of greenhouse gas emissions, the interests of the 
United States would be maximized if the United 
States were to use a calculation method of the cost 
of climate pollution that reflects global damages; 
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(11) due to the nature of climate change risks, 
the returns on mitigation may pay off in periods 
that would otherwise involve substantial losses; 
(12) economic theory and evidence suggests 
that, for actions with intergenerational consequences 
such as the consequences of climate change, a dis-
count rate approximately equal to or less than the 
long-term yield on the debt of the Treasury of the 
United States may be appropriate; and 
(13) it is imperative that the academic commu-
nity continue research on the cost of greenhouse 
gases. 
SEC. 3. DEFINITIONS. 
In this Act: 
(1) CALCULATION
METHOD.—The term ‘‘cal-
culation method’’ means the method by which the 
costs of greenhouse gases are calculated in accord-
ance with subsections (a), (b), and (c) of section 4, 
respectively. 
(2) 
COMMITTEE.—The 
term 
‘‘Committee’’ 
means the Costs of Greenhouse Gases Scientific Re-
view Committee established under section 7(a). 
(3) COSTS OF GREENHOUSE GASES.— 
(A) IN
GENERAL.—The term ‘‘costs of 
greenhouse gases’’ means the monetized present 
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discounted values, in dollars, of the current and 
future net costs to society that result from— 
(i) 1 ton of emissions of a specific 
greenhouse gas in a specific year, including 
damage relating to— 
(I) a change in net agricultural 
productivity; 
(II) energy use; 
(III) human health; 
(IV) property damage from in-
creased flood risk and sea level rise; 
and 
(V) to the maximum extent prac-
ticable, the value of the effect on eco-
system services due to climate change; 
and 
(ii) the monetized present discounted 
values of the current and future net bene-
fits to society from a 1-ton reduction of 
emissions of a specific greenhouse gas in a 
specific year, including a reduction in any 
damage described in clause (i). 
(B) INCLUSIONS.—The term ‘‘costs of 
greenhouse gases’’ includes— 
(i) the cost of carbon dioxide; 
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(ii) the cost of methane; 
(iii) the cost of nitrous oxide; and 
(iv) the cost of any other greenhouse 
gas estimated by the Working Group. 
(4) WORKING
GROUP.—The term ‘‘Working 
Group’’ means the Interagency Working Group on 
the Costs of Greenhouse Gases established under 
section 5(a). 
SEC. 4. COST OF CARBON DIOXIDE, COST OF METHANE, 
AND COST OF NITROUS OXIDE. 
(a) COST OF CARBON DIOXIDE.—In developing any 
rulemaking that requires a regulatory impact analysis, 
making any substantial procurement decision for which 
the cost of carbon dioxide is not applied before the date 
on which a revised version of the costs of greenhouse gases 
is finalized, the head of any Federal agency shall consider 
and document the cost of carbon dioxide in accordance 
with the amounts specified in the following table: 
Cost of Carbon Dioxide, 2010 Through 2050 (in 2007 
Dollars per Metric Ton of Carbon Dioxide), Dis-
count Rate and Statistic 
Year 
5 Percent 
Average 
3 Percent 
Average 
2.5 Percent 
Average 
High Impact 
(95th 
Percentile at 
3 Percent 
Discount 
Rate) 
2010 
$10 
$31 
$50 
$86
2011 
$11 
$32 
$51 
$90
2012 
$11 
$33 
$53 
$93
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Cost of Carbon Dioxide, 2010 Through 2050 (in 2007 
Dollars per Metric Ton of Carbon Dioxide), Dis-
count Rate and Statistic—Continued 
Year 
5 Percent 
Average 
3 Percent 
Average 
2.5 Percent 
Average 
High Impact 
(95th 
Percentile at 
3 Percent 
Discount 
Rate) 
2013 
$11 
$34 
$54 
$97
2014 
$11 
$35 
$55 
$101
2015 
$11 
$36 
$56 
$105
2016 
$11 
$38 
$57 
$108
2017 
$11 
$39 
$59 
$112
2018 
$12 
$40 
$60 
$116
2019 
$12 
$41 
$61 
$120
2020 
$12 
$42 
$62 
$123
2021 
$12 
$42 
$63 
$126
2022 
$13 
$43 
$64 
$129
2023 
$13 
$44 
$65 
$132
2024 
$13 
$45 
$66 
$135
2025 
$14 
$46 
$68 
$138
2026 
$14 
$47 
$69 
$141
2027 
$15 
$48 
$70 
$143
2028 
$15 
$49 
$71 
$146
2029 
$15 
$49 
$72 
$149
2030 
$16 
$50 
$73 
$152
2031 
$16 
$51 
$74 
$155
2032 
$17 
$52 
$75 
$158
2033 
$17 
$53 
$76 
$161
2034 
$18 
$54 
$77 
$164
2035 
$18 
$55 
$78 
$168
2036 
$19 
$56 
$79 
$171
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Cost of Carbon Dioxide, 2010 Through 2050 (in 2007 
Dollars per Metric Ton of Carbon Dioxide), Dis-
count Rate and Statistic—Continued 
Year 
5 Percent 
Average 
3 Percent 
Average 
2.5 Percent 
Average 
High Impact 
(95th 
Percentile at 
3 Percent 
Discount 
Rate) 
2037 
$19 
$57 
$81 
$174
2038 
$20 
$58 
$82 
$177
2039 
$20 
$59 
$83 
$180
2040 
$21 
$60 
$84 
$183
2041 
$21 
$61 
$85 
$186
2042 
$22 
$61 
$86 
$189
2043 
$22 
$62 
$87 
$192
2044 
$23 
$63 
$88 
$194
2045 
$23 
$64 
$89 
$197
2046 
$24 
$65 
$90 
$200
2047 
$24 
$66 
$92 
$203
2048 
$25 
$67 
$93 
$206
2049 
$25 
$68 
$94 
$209
2050 
$26 
$69 
$95 
$212. 
(b) COST OF METHANE.—In developing any rule-
making that requires a regulatory impact analysis, making 
any substantial procurement decision for which the cost 
of methane is not applied before the date on which a re-
vised version of the costs of greenhouse gases is finalized, 
the head of any Federal agency shall consider and docu-
ment the cost of methane in accordance with the amounts 
specified in the following table: 
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Cost of Methane, 2010 Through 2050 (in 2007 Dollars 
per Metric Ton of Methane), Discount Rate and 
Statistic 
Year 
5 Percent 
Average 
3 Percent 
Average 
2.5 Percent 
Average 
High Impact 
(95th 
Percentile at 
3 Percent 
Discount 
Rate) 
2010 
$370 
$870 
$1,200 
$2,400
2011 
$380 
$910 
$1,200 
$2,500
2012 
$400 
$940 
$1,300 
$2,600
2013 
$420 
$970 
$1,300 
$2,700
2014 
$440 
$1,000 
$1,300 
$2,700
2015 
$450 
$1,000 
$1,400 
$2,800
2016 
$470 
$1,100 
$1,400 
$2,900
2017 
$490 
$1,100 
$1,500 
$3,000
2018 
$510 
$1,100 
$1,500 
$3,000
2019 
$520 
$1,200 
$1,500 
$3,100
2020 
$540 
$1,200 
$1,600 
$3,200
2021 
$560 
$1,200 
$1,600 
$3,300
2022 
$590 
$1,300 
$1,700 
$3,400
2023 
$610 
$1,300 
$1,700 
$3,500
2024 
$630 
$1,400 
$1,800 
$3,600
2025 
$650 
$1,400 
$1,800 
$3,700
2026 
$670 
$1,400 
$1,900 
$3,800
2027 
$700 
$1,500 
$1,900 
$3,900
2028 
$720 
$1,500 
$2,000 
$4,000
2029 
$740 
$1,600 
$2,000 
$4,100
2030 
$760 
$1,600 
$2,000 
$4,200
2031 
$790 
$1,600 
$2,100 
$4,300
2032 
$820 
$1,700 
$2,100 
$4,500
2033 
$850 
$1,700 
$2,200 
$4,600
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Cost of Methane, 2010 Through 2050 (in 2007 Dollars 
per Metric Ton of Methane), Discount Rate and 
Statistic—Continued 
Year 
5 Percent 
Average 
3 Percent 
Average 
2.5 Percent 
Average 
High Impact 
(95th 
Percentile at 
3 Percent 
Discount 
Rate) 
2034 
$880 
$1,800 
$2,200 
$4,700
2035 
$900 
$1,800 
$2,300 
$4,900
2036 
$930 
$1,900 
$2,400 
$5,000
2037 
$960 
$1,900 
$2,400 
$5,100
2038 
$990 
$2,000 
$2,500 
$5,200
2039 
$1,000 
$2,000 
$2,500 
$5,400
2040 
$1,000 
$2,000 
$2,600 
$5,500
2041 
$1,100 
$2,100 
$2,600 
$5,600
2042 
$1,100 
$2,100 
$2,700 
$5,700
2043 
$1,100 
$2,200 
$2,700 
$5,800
2044 
$1,200 
$2,200 
$2,800 
$5,900
2045 
$1,200 
$2,300 
$2,800 
$6,100
2046 
$1,200 
$2,300 
$2,900 
$6,200
2047 
$1,300 
$2,400 
$2,900 
$6,300
2048 
$1,300 
$2,400 
$3,000 
$6,400
2049 
$1,300 
$2,500 
$3,000 
$6,500
2050 
$1,300 
$2,500 
$3,100 
$6,700. 
(c) COST OF NITROUS OXIDE.—In developing any 
rulemaking that requires a regulatory impact analysis, 
making any substantial procurement decision for which 
the cost of nitrous oxide is not applied before the date 
on which a revised version of the costs of greenhouse gases 
is finalized, the head of any Federal agency shall consider 
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and document the cost of nitrous oxide in accordance with 
the amounts specified in the following table: 
Cost of Nitrous Oxide, 2010 Through 2050 (in 2007 
Dollars per Metric Ton of Nitrous Oxide), Discount 
Rate and Statistic 
Year 
5 Percent 
Average 
3 Percent 
Average 
2.5 Percent 
Average 
High Impact 
(95th 
Percentile at 
3 Percent 
Discount 
Rate) 
2010 
$3,400 
$12,000 
$18,000 
$31,000
2011 
$3,500 
$12,000 
$18,000 
$32,000
2012 
$3,700 
$12,000 
$19,000 
$33,000
2013 
$3,800 
$13,000 
$19,000 
$34,000
2014 
$3,900 
$13,000 
$20,000 
$34,000
2015 
$4,000 
$13,000 
$20,000 
$35,000
2016 
$4,200 
$14,000 
$20,000 
$36,000
2017 
$4,300 
$14,000 
$21,000 
$37,000
2018 
$4,400 
$14,000 
$21,000 
$38,000
2019 
$4,600 
$15,000 
$22,000 
$38,000
2020 
$4,700 
$15,000 
$22,000 
$39,000
2021 
$4,900 
$15,000 
$23,000 
$40,000
2022 
$5,000 
$16,000 
$23,000 
$41,000
2023 
$5,200 
$16,000 
$23,000 
$42,000
2024 
$5,400 
$16,000 
$24,000 
$43,000
2025 
$5,500 
$17,000 
$24,000 
$44,000
2026 
$5,700 
$17,000 
$25,000 
$45,000
2027 
$5,900 
$17,000 
$25,000 
$46,000
2028 
$6,000 
$18,000 
$26,000 
$47,000
2029 
$6,200 
$18,000 
$26,000 
$48,000
2030 
$6,300 
$19,000 
$27,000 
$49,000
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SEC. 5. INTERAGENCY WORKING GROUP ON THE COSTS OF 
GREENHOUSE GASES. 
(a) ESTABLISHMENT.—The Director of the Office of 
Management and Budget, the Director of the Office of 
Science and Technology Policy, and the Chair of the Coun-
cil of Economic Advisers shall establish an interagency 
working group, to be known as the ‘‘Interagency Working 
Group on the Costs of Greenhouse Gases’’ to carry out 
the calculation method revision evaluation described in 
section 6. 
(b) MEMBERSHIP.—The Working Group shall consist 
of members from— 
(1) the Council of Economic Advisers; 
(2) the Office of Science and Technology Policy; 
(3) the National Security Council; 
(4) the National Economic Council; 
(5) the Council on Environmental Quality; 
(6) the Department of Agriculture; 
(7) the Department of Commerce; 
(8) the Department of Energy; 
(9) the Department of the Interior; 
(10) the Department of Transportation; 
(11) the Department of the Treasury; 
(12) the Department of Health and Human 
Services; and 
(13) the Environmental Protection Agency. 
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SEC. 6. CALCULATION METHOD REVISION. 
(a) REVISION EVALUATION.— 
(1) IN GENERAL.—Not later than 5 years after 
the date of enactment of this Act, and not less fre-
quently than once every 5 years thereafter, the 
Working Group shall carry out a revision evaluation 
for the cost of carbon dioxide, cost of methane, and 
cost of nitrous oxide to determine whether a revision 
of the calculation method of the cost of carbon diox-
ide, cost of methane, or cost of nitrous oxide is nec-
essary. 
(2) CONSIDERATIONS.—In carrying out a revi-
sion evaluation under paragraph (1) or a revision 
under subsection (b), the Working Group shall— 
(A) consider— 
(i) the findings of the National Acad-
emies of Sciences, Engineering, and Medi-
cine relating to approaches to estimating 
the costs of greenhouse gases; 
(ii) the findings of the Committee 
under section 7(a)(3); 
(iii) advancements in scientific and 
economic research relating to the impacts 
of climate change and the estimation of the 
costs of greenhouse gases; 
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(iv) new domestic and international 
findings; and 
(v) all harm caused by greenhouse gas 
emissions; 
(B) assess any proposed revision of the cal-
culation method with respect to— 
(i) consistency with the state of sci-
entific knowledge, as reflected by current, 
peer-reviewed literature; and 
(ii) the adequacy with which the pro-
posed calculation method identifies and 
represents key uncertainties and sensitivi-
ties; 
(C) evaluate the harm caused by green-
house gas emissions for the period beginning on 
the date on which the applicable revision eval-
uation commences and ending on a date in the 
future that would allow estimation of the vast 
majority of discounted climate damages; 
(D) apply one or more discount rates, 
which shall— 
(i) account for the intergenerational 
nature of the harm caused by climate 
change; and 
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(ii) be consistent with the interest 
rate of consumption used by Federal agen-
cies to reflect climate risk; 
(E) include values that account for global 
damages from greenhouse gas emissions; 
(F) document the calculation method and 
present results in a manner adequate for the 
scientific community to understand and assess 
the calculation method; and 
(G) make available to researchers the 
model code for review, use, and modification. 
(b) REVISION.— 
(1) CALCULATION
METHOD.—If the Working 
Group makes a determination under subsection 
(a)(1) that revision of the calculation method is nec-
essary, the Working Group shall draft a proposed re-
vision of the calculation method. 
(2) PUBLIC NOTIFICATION AND COMMENT PE-
RIOD.—Any proposed revision of the calculation 
method shall be published in the Federal Register 
for a period of public comment of not fewer than 90 
days and include consultation with industry groups. 
(3) EFFECT
OF
REVISIONS
BY
WORKING 
GROUP.—Any revised calculation method of the cost 
of carbon dioxide, the cost of methane, or the cost 
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of nitrous oxide developed by the Working Group 
under paragraph (1) and published under paragraph 
(2) shall supersede the applicable discount rate value 
of the cost of carbon dioxide, the cost of methane, 
or the cost of nitrous oxide under section 4. 
SEC. 7. COSTS OF GREENHOUSE GASES SCIENTIFIC RE-
VIEW COMMITTEE. 
(a) ESTABLISHMENT.— 
(1) IN GENERAL.—Not later than January 1, 
2019, and not less frequently than once every 5 
years thereafter, the Director of the Office of Man-
agement and Budget, in consultation with the Direc-
tor of the Office of Science and Technology Policy 
and the Chair of the Council of Economic Advisers, 
shall establish a committee, to be known as the 
‘‘Costs of Greenhouse Gases Scientific Review Com-
mittee’’. 
(2) MEMBERSHIP.—The membership of the 
Committee shall consist of not fewer than 10 mem-
bers, selected by the presidents of the National 
Academies of Sciences, Engineering, and Medicine, 
who shall represent scientific fields relevant to the 
estimation of the costs of greenhouse gases, includ-
ing— 
(A) climate science; 
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(B) climate economics; and 
(C) decision analysis. 
(3) DUTIES.—The Committee shall publish a 
report in which the Committee shall— 
(A) make a recommendation to the Work-
ing Group regarding whether a revision of the 
calculation method is necessary; 
(B) if the Committee determines that a re-
vision is necessary, recommend scientific data 
and models to be used by the Working Group 
in the revision of the calculation method; 
(C) provide scientific advice to the Work-
ing Group on the revision; and 
(D) provide guidance to the U.S. Global 
Change Research Program with respect to the 
research necessary to advance the estimation of 
the costs of greenhouse gases. 
(b) TERMINATION.—On the completion of the revi-
sion evaluation for which the Committee is established, the 
Committee shall terminate. 
(c) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary of Com-
merce such sums as are necessary to administer the Com-
mittee. 
Æ 
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