I 
116TH CONGRESS 
2D SESSION 
H. R. 7399 
To require the Administrator of the Environmental Protection Agency to 
conduct a feasibility study regarding the use of the shadow price of 
carbon in Federal spending decisions to take into account the resulting 
carbon dioxide emissions, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 29, 2020 
Mr. BEYER (for himself and Mr. CONNOLLY) introduced the following bill; 
which was referred to the Committee on Oversight and Reform 
A BILL 
To require the Administrator of the Environmental Protec-
tion Agency to conduct a feasibility study regarding the 
use of the shadow price of carbon in Federal spending 
decisions to take into account the resulting carbon diox-
ide emissions, 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 ‘‘Smarter Purchasing 
Act’’. 
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SEC. 2. FEASIBILITY STUDY REGARDING THE USE OF THE 
SHADOW PRICE OF CARBON IN FEDERAL 
SPENDING DECISIONS TO TAKE INTO AC-
COUNT THE RESULTING CARBON DIOXIDE 
EMISSIONS. 
(a) IN GENERAL.—The Administrator of the Envi-
ronmental Protection Agency, in consultation with the 
Secretary of Energy, the Secretary of the Interior, the 
Secretary of Transportation, and the Administrator of the 
General Services Administration, shall conduct a study to 
determine whether it is feasible for Federal agencies to 
factor in the shadow price of carbon in their internal deci-
sion-making processes for Federal procurement, acquisi-
tions, contracting, and other investments. 
(b) CONTENT.—The feasibility study required by sub-
section (a) shall include the following: 
(1) An assessment of— 
(A) the use of the shadow price of carbon 
in the private sector, in States, and in other 
countries, as relevant; and 
(B) the ability of Federal agencies to im-
plement similar use of the shadow price of car-
bon. 
(2) An assessment of which kinds of Federal 
expenditures and operations are best suited for 
shadow pricing. 
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(3) An assessment of whether the shadow price 
of carbon should be— 
(A) tied to the social cost of carbon that 
Federal agencies use to conduct regulatory 
analyses of economically significant regulatory 
actions; 
(B) tied to a path that minimizes the cost 
of achieving a long-term cumulative emissions 
goal; or 
(C) based on some other rationale. 
(4) An identification and evaluation of any stat-
utory, regulatory, or other obstacle to the use of the 
shadow price of carbon. 
(c) FINAL REPORT.—Not later than 1 year after the 
date of enactment of this Act, the Administrator of the 
Environmental Protection Agency shall— 
(1) prepare a final report on the results of the 
feasibility study conducted under subsection (a); and 
(2) submit to Congress the final report pre-
pared under paragraph (1) and any recommenda-
tions of the Administrator relating to such results. 
(d) PUBLIC AVAILABILITY OF DATA.—The Adminis-
trator of the Environmental Protection Agency shall make 
available to the public the final report prepared under sub-
section (c). 
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(e) DEFINITIONS.—In this Act: 
(1) SHADOW
PRICE
OF
CARBON.—The term 
‘‘shadow price of carbon’’ means a hypothetical sur-
charge to market prices for goods or services that 
involve significant carbon dioxide emissions in their 
supply chain. 
(2) SOCIAL COST OF CARBON.—The term ‘‘so-
cial cost of carbon’’ means the social cost of carbon 
as described in the technical support document enti-
tled ‘‘Technical Support Document: Technical Up-
date of the Social Cost of Carbon for Regulatory Im-
pact Analysis Under Executive Order 12866’’, pub-
lished by the Interagency Working Group on Social 
Cost of Carbon, United States Government, in May 
2013, revised in November 2013, or any successor 
or substantially related document, or any other esti-
mate of the monetized damages associated with an 
incremental increase in carbon dioxide emissions in 
a given year. 
Æ 
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