I 
110TH CONGRESS 
2D SESSION 
H. R. 7194 
To distribute proceeds from greenhouse gas emissions allowance auctions 
to low and moderate income households, through refundable tax credits 
for wage earners and senior citizens and monthly rebates to low-income 
citizens, to offset any loss in purchasing power such households may 
experience as a result of the regulation of greenhouse gas emissions. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 27, 2008 
Ms. SOLIS introduced the following bill; which was referred to the Committee 
on Ways and Means, and in addition to the Committees on Energy and 
Commerce and Education and Labor, for a period to be subsequently de-
termined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
A BILL 
To distribute proceeds from greenhouse gas emissions allow-
ance auctions to low and moderate income households, 
through refundable tax credits for wage earners and 
senior citizens and monthly rebates to low-income citi-
zens, to offset any loss in purchasing power such house-
holds may experience as a result of the regulation of 
greenhouse gas emissions. 
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; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Climate Change Rebate Act of 2008’’. 
(b) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Rebate financing. 
Sec. 3. Climate change tax credit for working families and senior citizens. 
Sec. 4. Climate change rebates for low-income households. 
Sec. 5. LIHEAP and weatherization. 
SEC. 2. REBATE FINANCING. 
If Federal legislation is enacted that would limit the 
emission of greenhouse gasses, 35 percent of the total 
value of emissions allowances created by such legislation 
shall be auctioned each year and the receipts from that 
auction deposited in the Treasury, for the purpose of car-
rying out the purposes of this Act. 
SEC. 3. CLIMATE CHANGE TAX CREDIT FOR WORKING FAM-
ILIES AND SENIOR CITIZENS. 
(a) IN GENERAL.—Subpart C of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to refundable credits) is amended by redes-
ignating section 37 as section 38 and by inserting after 
section 36 the following new section: 
‘‘SEC. 37. CLIMATE CHANGE TAX CREDIT. 
‘‘(a) IN GENERAL.—In the case of an eligible indi-
vidual, there shall be allowed as a credit against the tax 
imposed by this subtitle for the taxable year an amount 
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equal to the energy cost increase attributable to carbon 
regulation. 
‘‘(b) ENERGY COST INCREASE ATTRIBUTABLE TO 
CARBON REGULATION.—For purposes of this section— 
‘‘(1) IN GENERAL.—The energy cost increase 
attributable to carbon regulation for any taxable 
year shall be an amount equal to the applicable per-
centage of the base projected energy cost increase. 
‘‘(2) APPLICABLE PERCENTAGE.—The applica-
ble percentage shall be determined in accordance 
with the following table: 
‘‘In the case of: 
With: 
The ap-
plicable 
percent-
age is: 
An eligible individual making a 
joint return ...........................
No qualifying children .............
155 
1 qualifying child .....................
180 
2 or more qualifying children ..
200 
An eligible individual not mak-
ing a joint return ..................
No qualifying children .............
100 
1 qualifying child .....................
155 
2 qualifying children ................
180 
‘‘(3) BASE
PROJECTED
ENERGY
COST
IN-
CREASE.—The term ‘base projected energy cost in-
crease’ means the base projected cost increase in ef-
fect under the Climate Change Rebate Program 
(section 4 of the Climate Change Rebate Act of 
2008) for the calendar in which the taxable year of 
the taxpayer begins. 
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‘‘(c) LIMITATIONS.— 
‘‘(1) PHASE-IN.—In the case of a taxpayer with 
earned income for the taxable year of less than 
$8,000 ($13,500 in the case of a joint return or 
head of household), the amount allowed as a credit 
under subsection (a) shall not exceed the amount 
which bears the same ratio to the amount which 
would be so allowed as— 
‘‘(A) the earned income of the taxpayer for 
the taxable year, bears to 
‘‘(B) $8,000 ($13,500 in the case of a 
joint return or head of household). 
‘‘(2) PHASE-OUT.— 
‘‘(A) IN
GENERAL.—The amount which 
would (but for this paragraph) be allowed as a 
credit under subsection (a) shall be reduced 
(but not below zero) by the amount determined 
under subparagraph (B). 
‘‘(B) 
AMOUNT
OF
REDUCTION.—The 
amount determined under this subparagraph is 
the amount which bears the same ratio to the 
amount which would be so allowed as— 
‘‘(i) the excess of— 
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‘‘(I) 
the 
taxpayer’s 
adjusted 
gross income (or, if greater, earned 
income) for the taxable year, over 
‘‘(II) 
the 
applicable 
amount, 
bears to 
‘‘(ii) the applicable denominator. 
‘‘(C) APPLICABLE
AMOUNT; APPLICABLE 
DENOMINATOR.—The applicable amount and 
applicable denominator shall be determined in 
accordance with the following table: 
‘‘In the case of: 
The ap-
plicable 
amount 
is: 
The ap-
plicable 
denomi-
nator is: 
An eligible individual making a joint return ..........
$40,000 
$40,000 
An eligible individual with one or more qualifying 
children and not making a joint return ..............
$30,000 
$30,000 
Any other eligible individual ...................................
$20,000 
$20,000 
‘‘(d) DEFINITIONS AND SPECIAL RULES.— 
‘‘(1) ELIGIBLE INDIVIDUAL.—For purposes of 
this section— 
‘‘(A) IN GENERAL.—The term ‘eligible in-
dividual’ means, with respect to a taxable year, 
any individual who— 
‘‘(i) has earned income for such tax-
able year, and 
‘‘(ii) is not a dependent for whom a 
deduction is allowable under section 151 to 
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another taxpayer for any taxable year be-
ginning in the same calendar year as such 
taxable year. 
‘‘(B) 
CERTAIN
ELIGIBLE
INDIVIDUAL 
RULES
MADE
APPLICABLE.—Rules similar to 
the rules of subparagraphs (B) through (F) of 
section 32(c)(1) shall apply. 
‘‘(2) EARNED
INCOME
QUALIFYING
CHILD.— 
For purposes of this section, the term ‘earned in-
come’ shall have the meaning given such term by 
section 32(c). 
‘‘(3) QUALIFYING CHILD.—For purposes of this 
section, the term ‘qualifying child’ shall have the 
meaning given such term by section 24. 
‘‘(4) MARRIED INDIVIDUALS.—In the case of an 
individual who is married (within the meaning of 
section 7703), this section shall apply only if a joint 
return is filed for the taxable year under section 
6103. 
‘‘(5) COORDINATION
WITH
CLIMATE
CHANGE 
REBATE PROGRAM.— 
‘‘(A) IN
GENERAL.—The amount which 
would be allowed as a credit to a taxpayer 
under subsection (a) shall, before the applica-
tion of subsection (c), be reduced (but not 
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below zero) by the amounts received by the tax-
payer under the Climate Change Rebate Pro-
gram under section 4 of the Climate Change 
Rebate Act of 2008 for months beginning in the 
taxable year. 
‘‘(B) ALLOCATION
OF
CLIMATE
CHANGE 
REBATES.—For purposes of this subparagraph, 
in the case of 2 or more eligible individuals who 
are members of the same household (as defined 
for purposes of the Climate Change Rebate 
Program) with respect to which an amount is 
received under such program for any month, for 
each such month beginning in the taxable year 
such an individual shall be treated as receiving 
an amount equal to— 
‘‘(i) the amount received with respect 
to such household for such month, divided 
by 
‘‘(ii) the number of eligible individuals 
who are members of such household at the 
beginning of such month. 
‘‘(e) SENIOR CLIMATE CHANGE CREDIT.— 
‘‘(1) IN GENERAL.—In the case of an individual 
with qualifying retirement income for the taxable 
year, the taxpayer may elect to apply subsections (c) 
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and (d)(1) by substituting ‘qualifying retirement in-
come’ for ‘earned income’. 
‘‘(2) LIMITATION.—If the taxpayer makes the 
election described in paragraph (1) for the taxable 
year, the amount allowed as a credit under sub-
section (a) for such taxable year shall not exceed an 
amount equal to 50 percent of the amount which 
would (but for this paragraph) be so allowed. 
‘‘(3) QUALIFYING
INCOME.—For purposes of 
this section, the term ‘qualifying retirement income’ 
means— 
‘‘(A) a distribution (other than a rollover) 
from— 
‘‘(i) a plan described in section 401(a) 
which includes a trust exempt from tax 
under section 501(a), 
‘‘(ii) an annuity plan described in sec-
tion 403(a), 
‘‘(iii) an annuity contract described in 
section 403(b), 
‘‘(iv) an individual retirement account 
described in section 408(a), 
‘‘(v) an individual retirement annuity 
described in section 408(b), 
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‘‘(vi) a Roth IRA (as defined in 
408A(b)), 
‘‘(vii) an eligible deferred compensa-
tion plan (as defined in section 457), 
‘‘(viii) a governmental plan (as de-
fined in section 414(d)), 
‘‘(ix) a trust described in section 
501(c)(18), or 
‘‘(x) any other plan, contract, account, 
annuity, or trust which, at any time, has 
been determined by the Secretary to be 
such a plan, contract, account, annuity, or 
trust, 
‘‘(B) social security benefits (within the 
meaning of section 86(d)), 
‘‘(C) any compensation or pension received 
under chapter 11, chapter 13, or chapter 15 of 
title 38, United States Code, and 
‘‘(D) any other amount received which is 
in the nature of a retirement benefit payment.’’. 
(b) 
CONFORMING
AMENDMENTS.—(1) 
Section 
1324(b)(2) of title 31, United States Code, is amended 
by inserting ‘‘37,’’ after ‘‘36,’’. 
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(2) Subparagraph (A) of section 6211(b)(4) of the 
Internal Revenue Code of 1986 is amended by inserting 
‘‘37,’’ after ‘‘36,’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart C of part IV of subchapter A of chapter 1 
of such Code is amended by striking the item relating to 
section 37 and inserting the following new items: 
‘‘Sec. 37. Climate change tax credit. 
‘‘Sec. 38. Overpayments of tax.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2009. 
SEC. 4. CLIMATE CHANGE REBATES FOR LOW-INCOME 
HOUSEHOLDS. 
(a) DEFINITIONS.—For purposes of this section: 
(1) ADMINISTRATOR.—The term ‘‘Adminis-
trator’’ means the Administrator of the Environ-
mental Protection Agency or, if the President des-
ignates an alternative agency under subsection 
(b)(1), the head of such agency. 
(2) BASE
PROJECTED
COST
INCREASE.—The 
term ‘‘base projected cost increase’’ means an 
amount equal to the projected average annual reduc-
tion in purchasing power for a 1-person household in 
the second lowest quintile of the income scale, that 
results from the regulation of greenhouse gas emis-
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sions under any Federal legislation is enacted on or 
after the date of the enactment of this Act that 
would limit the emission of greenhouse gasses in 
connection with the sale of emission allowances, pro-
vided that each quintile shall— 
(A) be based on income adjusted for house-
hold size; and 
(B) have an equal aggregate number of in-
dividuals. 
(3) ELDERLY
OR
DISABLED
MEMBER.—The 
term ‘‘elderly or disabled member’’ has the meaning 
given such term in section 3 of the Food and Nutri-
tion Act of 2008 (7 U.S.C. 2012). 
(4) ELECTRONIC BENEFIT TRANSFER CARD.— 
The term ‘‘electronic benefit transfer card’’ means a 
card that makes a rebate provided under the Pro-
gram accessible to a household through an Elec-
tronic Benefits Transfer System. 
(5) ELECTRONIC
BENEFIT
TRANSFER
SYS-
TEM.—The term ‘‘Electronic Benefit Transfer Sys-
tem’’ means a system by which rebates provided 
under the Program are issued from and stored in a 
central databank by means of electronic benefit 
transfer cards. 
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(6) HOUSEHOLD.—(A) Subject to subparagraph 
(B), the term ‘‘household’’ means— 
(i) an individual who lives alone; or 
(ii) a group of individuals who live to-
gether. 
(B) For purposes of subparagraph (A)— 
(i) an individual or a group of individuals 
who are a household under the Food and Nutri-
tion Act of 2008 (7 U.S.C. 2012) shall be con-
sidered a household; 
(ii) a single individual or married couple 
who receive benefits under Section 1860D–14 
of the Social Security Act (42 U.S.C 1395w– 
114) shall be considered a household; 
(iii) notwithstanding Section 4(d)(2) of 
this Act, the Administrator shall establish rules 
for providing the Climate Change Rebate in an 
equitable and administratively simple manner to 
‘‘mixed households’’ where the group of individ-
uals who live together includes a combination of 
members described in clause (i) and clause (ii), 
or includes additional members not described in 
clause (i) or clause (ii). 
(7) STATE.—The term ‘‘State’’ means any of 
the several States, the District of Columbia, the 
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Commonwealth of Puerto Rico, American Samoa, 
the United States Virgin Islands, Guam, or the 
Commonwealth of the Northern Mariana Islands. 
(8) STATE AGENCY.—The term ‘‘State agency’’ 
means— 
(A) an agency of a State (including the 
local offices of such agency) that has the re-
sponsibility for the administration of federally 
aided public assistance programs in such State; 
or 
(B) in a State in which such programs are 
operated on a decentralized basis, the cor-
responding local agencies that administer such 
programs. 
(9) POVERTY LINE.—The term ‘‘poverty line’’ 
has the meaning given such term in section 673(2) 
of the Community Services Block Grant Act (42 
U.S.C. 9902(2)), including any revision required by 
such section. 
(b) CLIMATE CHANGE REBATE PROGRAM.— 
(1) FORMULATION
AND
ADMINISTRATION
OF 
PROGRAM.—The Administrator of the Environ-
mental Protection Agency, or the head of such other 
Executive agency (as defined in section 105 of title 
5 of the United States Code) as the President may 
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designate, shall formulate and administer in accord-
ance with this section a program to be known as the 
‘‘Climate Change Rebate Program’’ (in this section 
referred to as the ‘‘Program’’). 
(2) STATE PARTICIPATION IN THE PROGRAM.— 
At the request of a State, eligible households in such 
State shall be provided an opportunity to receive 
compensation through the issuance of a rebate in ac-
cordance with this section for the reduction in pur-
chasing power resulting from the regulation of 
greenhouse gas emissions under any Federal legisla-
tion described in subsection (a)(2). 
(c) ELIGIBILITY.—Subject to subsection (d), a house-
hold shall be eligible to participate in the Program if the 
State agency designated by the chief executive officer of 
such State to carry out the Program in such State deter-
mines that— 
(1) such household contains 1 or more individ-
uals who participate in the supplemental nutrition 
assistance program under the Food and Nutrition 
Act of 2008 (7 U.S.C. 2011 et seq.); 
(2) such household, without regard to whether 
such household includes an elderly or disabled mem-
ber, meets— 
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(A) the gross income standard described in 
section 5(c)(2) of the Food and Nutrition Act 
of 2008 (7 U.S.C. 2014(c)(2)); and 
(B) the financial resources limit in effect 
for the State in which such household is located 
under section 5(g) the Food and Nutrition Act 
of 2008 (7 U.S.C. 2014(g)); 
(3) such household consists of 1 or more indi-
viduals who are subsidy eligible individuals (as de-
fined in section 1860D–14 of the Social Security Act 
(42 U.S.C. 1395w–114)); or 
(4) such household consists of 1 or more indi-
vidual who are eligible for benefits under title XVIII 
of the Social Security Act and who meet the income 
requirements described in paragraph (1) or (2) of 
section 1860D–14(a) of such Act and the resource 
requirements described in subparagraphs (D) and 
(E) of section 1860D–14(a)(3). 
(d) LIMITATIONS.—The Administrator shall establish 
procedures to ensure that households do not receive more 
than 1 rebate per month. 
(e) REBATE CALCULATION.— 
(1) BASE
PROJECTED
COST
INCREASE.—Not 
later than October 1 of 2009, and of each subse-
quent calendar year, the Administrator of the En-
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ergy Information Administration shall calculate and 
publish the base projected cost increase for the fol-
lowing year. 
(2) MAXIMUM
REBATE
AMOUNT.—The max-
imum rebate amount for each month of a calendar 
year shall be— 
(A) set by the Administrator; and 
(B) equal to 1⁄12 of— 
(i) 100 percent of the base projected 
cost increase for a household containing 1 
individual; 
(ii) 155 percent of the base projected 
cost increase for a household containing 2 
individuals; 
(iii) 180 percent of the base projected 
cost increase for a household containing 3 
individuals; and 
(iv) 200 percent of the base projected 
cost increase for a household containing 4 
or more individuals. 
(3) MONTHLY
REBATE
AMOUNTS.—Eligible 
households shall receive a monthly rebate calculated 
in the following manner: 
(A) A household with gross income, as de-
termined in the manner provided in section 5 of 
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the Food and Nutrition Act of 2008 (7 U.S.C. 
2014), that is not more than 50 percent of the 
poverty line shall receive the maximum rebate 
amount for a household of equal size. 
(B) A household with gross income, as de-
termined in the manner provided in section 5 of 
the Food and Nutrition Act of 2008 (7 U.S.C. 
2014), that is greater than 50 percent of the 
poverty line and not more than 130 percent of 
the poverty line shall receive a rebate in an 
amount determined in accordance with a sched-
ule of phase-down rates based on household 
size, established by the Administrator and 
specifying the amount by which the otherwise 
applicable maximum rebate amount shall be re-
duced for each dollar by which such gross in-
come exceeds 50 percent of the poverty line. 
The phase-down rate shall be— 
(i) for household sizes of 4 or fewer 
individuals, equal to the maximum rebate 
amount divided by 80 percent of the pov-
erty line applicable to the particular house-
hold size involved; and 
(ii) for household sizes of 5 or more 
individuals, equal to a rate determined in 
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