I 
119TH CONGRESS 
1ST SESSION H. R. 3338 
To amend the Internal Revenue Code of 1986 to eliminate certain fuel 
excise taxes and impose a tax on greenhouse gas emissions to provide 
revenue for maintaining and building American infrastructure, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 13, 2025 
Mr. FITZPATRICK (for himself and Mr. CARBAJAL) introduced the following 
bill; which was referred to the Committee on Ways and Means, and in 
addition to the Committees on Energy and Commerce, Natural Re-
sources, Education and Workforce, Transportation and Infrastructure, 
Science, Space, and Technology, and Agriculture, for a period to be sub-
sequently 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 eliminate 
certain fuel excise taxes and impose a tax on greenhouse 
gas emissions to provide revenue for maintaining and 
building American infrastructure, 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; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Modernizing America with Rebuilding to Kickstart the 
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Economy of the Twenty-first Century with a Historic In-
frastructure-Centered Expansion Act’’ or the ‘‘MARKET 
CHOICE Act’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Findings. 
TITLE I—GREENHOUSE GAS EMISSIONS 
Sec. 101. Treatment of domestic greenhouse gas emissions. 
Sec. 102. Border greenhouse gas adjustments. 
TITLE II—DISTRIBUTION OF REVENUES FROM TAXATION OF 
GREENHOUSE GAS EMISSIONS 
Subtitle A—Rebuilding Infrastructure and Solutions for the Environment 
Trust Fund 
Sec. 201. Establishment of the RISE Trust Fund. 
Sec. 202. Appropriations from the RISE Trust Fund. 
Sec. 203. State grants. 
Subtitle B—Certain Manufacturers Excise Taxes 
Sec. 211. Repeal of Federal motor vehicle and aviation fuel taxes. 
Sec. 212. Modifications of qualifying advanced coal project credit. 
TITLE III—AMENDMENTS TO OTHER LAWS 
Subtitle A—Amendments to Federal Environmental Statutes 
Sec. 301. Amendments to the Clean Air Act. 
Sec. 302. Frequent and chronic flooding mitigation and adaptation infrastruc-
ture projects. 
Sec. 303. No preemption of State law. 
Subtitle B—Assistance to Displaced Workers in the Energy Sector 
Sec. 321. Assistance to displaced workers in the energy sector. 
TITLE IV—NATIONAL CLIMATE COMMISSION 
Sec. 401. Establishment of Commission. 
Sec. 402. Duties of Commission. 
Sec. 403. Powers of Commission. 
Sec. 404. Funding for the activities of the Commission. 
Sec. 405. Staff of the Commission. 
SEC. 2. FINDINGS. 
Congress finds that— 
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(1) roads, bridges, airports, and urban trans-
portation systems are essential to the economic and 
national security of the United States; 
(2) there is a chronic shortfall in funding for 
the maintenance of highways, bridges, and other 
critical infrastructure; 
(3) strategic investments in new infrastructure 
will allow for economic growth and dynamism in the 
21st century; 
(4) there has been a marked increase in ex-
treme weather events and the negative impacts of a 
changing climate are expected to worsen in every re-
gion of the United States; 
(5) if left unaddressed, the consequences of a 
changing climate have the potential to adversely im-
pact the health of all Americans, harm the economy, 
and impose substantial costs on local, State, and 
Federal budgets; 
(6) efforts to reduce climate risk should protect 
our Nation’s economy, security, infrastructure, agri-
culture, water supply, public health, and public safe-
ty; and 
(7) there is bipartisan support for pursuing ef-
forts to reduce greenhouse gas emissions through 
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economically viable, broadly supported private and 
public policies and solutions. 
TITLE I—GREENHOUSE GAS 
EMISSIONS 
SEC. 101. TREATMENT OF DOMESTIC GREENHOUSE GAS 
EMISSIONS. 
(a) IN GENERAL.—The Internal Revenue Code of 
1986 is amended by adding at the end the following new 
subtitle: 
‘‘Subtitle L—Greenhouse Gas 
Emissions 
‘‘PART 1—TAXATION OF GREENHOUSE GAS 
EMISSIONS 
‘‘Sec. 9901. Imposition of tax on combusted fossil fuel greenhouse gas emis-
sions. 
‘‘Sec. 9902. Imposition of tax on greenhouse gas emissions from certain indus-
trial processes. 
‘‘Sec. 9903. Imposition of tax on greenhouse gas emissions from certain prod-
uct uses. 
‘‘Sec. 9904. Calculation of taxable emissions. 
‘‘Sec. 9905. Credit for state payments. 
‘‘Sec. 9906. Penalties for nonpayment. 
‘‘Sec. 9907. Definitions. 
‘‘SEC. 9901. IMPOSITION OF TAX ON COMBUSTED FOSSIL 
FUEL GREENHOUSE GAS EMISSIONS. 
‘‘(a) IN GENERAL.—There is hereby imposed a tax 
on fossil fuels produced within, or imported into, the 
United States. 
‘‘(b) RATE OF TAX.— 
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‘‘(1) GREENHOUSE GASES THAT WOULD BE RE-
LEASED IF THE FOSSIL FUEL WERE COMBUSTED.— 
The tax imposed by subsection (a) shall be the appli-
cable amount per ton of carbon dioxide equivalent of 
all greenhouse gasses that would be released if the 
fossil fuel were combusted. 
‘‘(2) APPLICABLE AMOUNT OF CARBON DIOXIDE 
EQUIVALENT
EMISSIONS.—For purposes of para-
graph (1), the term ‘applicable amount’ means— 
‘‘(A) for calendar year 2027, $40 per met-
ric ton of carbon dioxide equivalent emissions, 
and 
‘‘(B) for each calendar year after 2027, 
the tax rate shall be the sum of— 
‘‘(i) the previous calendar year’s tax 
rate, plus 
‘‘(ii) the sum of— 
‘‘(I) 5 percentage points, plus 
‘‘(II) a percentage increase in the 
previous year’s tax rate equal to the 
increase in the Consumer Price Index 
for the previous calendar year. 
‘‘(3) CONSUMER PRICE INDEX FOR ANY CAL-
ENDAR YEAR.—For purposes of subparagraph (B), 
the Consumer Price Index for the previous calendar 
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year is the average of the Consumer Price Index for 
all-urban consumers published by the Department of 
Labor as of the close of the 12-month period ending 
on August 31 of such calendar year. For purposes 
of the preceding sentence, the revision of the Con-
sumer Price Index which is most consistent with the 
Consumer Price Index for calendar year 1986 shall 
be used. 
‘‘(4) RATE ADJUSTMENT BASED ON EMISSION 
LEVELS.— 
‘‘(A) REPORT.—Not later than March 30, 
2028, and annually thereafter, the Secretary 
and the Administrator shall jointly report the 
emissions during the calendar year ending on 
the preceding December 31 from sources sub-
ject to taxation under this part. The report 
shall determine whether the cumulative amount 
of annual emissions reported for the period be-
ginning in calendar year 2027 and through the 
end of the preceding calendar year were less 
than the emissions levels specified in the fol-
lowing schedule: 
‘‘(i) The total emissions through cal-
endar year 2027 are 4,700 million metric 
tons of carbon dioxide equivalent. 
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‘‘(ii) The total emissions through cal-
endar year 2028 are 9,400 million metric 
tons of carbon dioxide equivalent. 
‘‘(iii) The total emissions through cal-
endar year 2029 are 14,000 million metric 
tons of carbon dioxide equivalent. 
‘‘(iv) The total emissions through cal-
endar year 2030 are 18,300 million metric 
tons of carbon dioxide equivalent. 
‘‘(v) The total emissions through cal-
endar year 2031 are 22,600 million metric 
tons of carbon dioxide equivalent. 
‘‘(vi) The total emissions through cal-
endar year 2032 are 26,800 million metric 
tons of carbon dioxide equivalent. 
‘‘(vii) The total emissions through cal-
endar year 2033 are 31,000 million metric 
tons of carbon dioxide equivalent. 
‘‘(viii) The total emissions through 
calendar year 2034 are 35,100 million 
metric tons of carbon dioxide equivalent. 
‘‘(ix) The total emissions through cal-
endar year 2035 are 39,100 million metric 
tons of carbon dioxide equivalent. 
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‘‘(x) The total emissions through cal-
endar year 2036 are 43,100 million metric 
tons of carbon dioxide equivalent. 
‘‘(xi) The total emissions through cal-
endar year 2037 are 47,100 million metric 
tons of carbon dioxide equivalent. 
‘‘(B) ADJUSTMENTS
FOR
REPORT
PE-
RIOD.— 
‘‘(i) IN
GENERAL.—Not later than 
March 30, 2029, and every two years 
thereafter, the Secretary shall determine 
whether an adjustment is required in ac-
cordance with clause (ii). 
‘‘(ii) PERIOD THROUGH 2038.—If the 
emission level reported under subpara-
graph (A) for calendar year 2028, and 
every second calendar year thereafter 
through calendar year 2038, exceeds the 
level for such calendar year specified in 
clauses (i) through (xi) of subparagraph 
(A), then the applicable amount under 
paragraph (2) for the calendar year begin-
ning on the next January 1 following the 
determination in clause (i) shall, after the 
increase under paragraph (2) for such next 
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calendar year, be increased by an addi-
tional $4 per metric ton. 
‘‘(c) BY WHOM PAID.—The tax imposed by sub-
section (a) shall be paid by the owner of the fossil fuel 
at the point of taxation. 
‘‘(d) POINT OF TAXATION.— 
‘‘(1) For fossil fuels produced within the United 
States, the point of taxation shall be— 
‘‘(A) for coal, the mine mouth or, for 
washed coal, the exit from the coal preparation 
and processing plant, 
‘‘(B) for petroleum products, the exit point 
from the refinery, and 
‘‘(C) for natural gas, the exit from the gas 
processing plant or, for natural gas that is not 
treated at a gas processing plant, the point of 
sale to the person who combusts the gas or in-
corporates it into a product that is not intended 
for combustion. 
‘‘(2) For any fossil fuel imported into the 
United States, the point of taxation shall be the 
point at which it first enters the United States. 
‘‘(e) EXEMPTIONS.— 
‘‘(1) 
EXEMPTION
FOR
NONCOMBUSTIVE 
USES.— 
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‘‘(A) REFUND FOR REDUCTION OR ELIMI-
NATION OF EMISSIONS.—Any manufacturer of a 
product that incorporates a fossil fuel that has 
been taxed under this section who can dem-
onstrate to the Secretary that the fossil fuel has 
been transformed via the manufacture of the 
product so that the fossil fuel’s emissions will 
be reduced or eliminated over the product’s life-
time shall be entitled to a refund of the tax 
paid under this section on the proportion of the 
emissions reduced thereby, as determined by 
the Secretary. 
‘‘(B) RULE.—The Secretary, in consulta-
tion with the Administrator, shall establish by 
rule the criteria and process by which product 
manufacturers can demonstrate that the condi-
tions in subparagraph (A) have been satisfied. 
‘‘(C) PUBLICATION
OF
REGULATIONS.— 
The Secretary shall publish the regulations re-
quired by this subsection no later than one year 
prior to the start of the calendar year referred 
to in section 9901(b)(2)(A). The Secretary may 
not collect the tax imposed by this section for 
any calendar year that begins less than one 
year after the regulations are published. 
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‘‘(2) EXEMPTION FOR CARBON CAPTURE AND 
STORAGE.— 
‘‘(A) REFUND
FOR
SEQUESTERS.—Any 
person who sequesters greenhouse gas emissions 
resulting from the combustion of fossil fuel that 
has passed through a point of taxation shall be 
entitled to a refund of the tax imposed by this 
section. Emissions that are used for enhanced 
oil recovery shall be entitled for such refund 
provided that these emissions meet all of the 
criteria applicable to other emissions that qual-
ify for such refund. 
‘‘(B) RULE.—The Secretary shall establish 
by rule the procedures by which to apply for 
such refunds and such refunds shall be paid 
within six months of the Secretary receiving an 
approvable application. 
‘‘(C) TIME
OF
REFUND.—The Secretary 
may not refund any amounts under this para-
graph until such time as the Secretary has pub-
lished the regulations described in section 
45Q(f)(2). 
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‘‘SEC. 9902. IMPOSITION OF TAX ON GREENHOUSE GAS 
EMISSIONS 
FROM 
CERTAIN 
INDUSTRIAL 
PROCESSES. 
‘‘(a) IN GENERAL.—There is hereby imposed a tax 
on industrial process greenhouse gas emissions by certain 
source categories. 
‘‘(b) LIST OF SOURCE CATEGORIES.— 
‘‘(1) INITIAL LIST.—The Congress establishes 
for purposes of this section a list of source cat-
egories subject to this section as follows: 
‘‘(A) Iron and steel production and met-
allurgical coke production. 
‘‘(B) Underground coal mining. 
‘‘(C) Coal preparation and processing 
plants. 
‘‘(D) Refineries. 
‘‘(E) Cement production. 
‘‘(F) Petrochemical production. 
‘‘(G) Lime production. 
‘‘(H) Ammonia production. 
‘‘(I) Aluminum production. 
‘‘(J) Soda ash production. 
‘‘(K) Ferroalloy production. 
‘‘(L) Phosphoric acid production. 
‘‘(M) Glass production. 
‘‘(N) Zinc production. 
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‘‘(O) Lead production. 
‘‘(P) Magnesium production and proc-
essing. 
‘‘(Q) Nitric acid production. 
‘‘(R) Adipic acid production. 
‘‘(S) Semiconductor manufacture. 
‘‘(T) Electrical transmission and distribu-
tion. 
‘‘(2) REVISION OF THE LIST.—The Adminis-
trator shall review the list of source categories estab-
lished by this subsection not less than once every 
five years to determine if they should continue to be 
listed and publish the results of that review. The Ad-
ministrator may, if appropriate, add any source cat-
egories to this list by rule. 
‘‘(3) REMOVAL OF A SOURCE CATEGORY FROM 
THE LIST.—The Administrator may remove a source 
category from this list only if— 
‘‘(A) the total emissions from the entire 
source category which are taxable under this 
section have been less than 250,000 metric tons 
of carbon dioxide equivalent per year for each 
of three consecutive years, 
‘‘(B) the average emissions from facilities 
in the source category which are taxable under 
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this section have been less than 25,000 metric 
tons of carbon dioxide equivalent per year for 
each of the years referred in subparagraph (A), 
and 
‘‘(C) the Administrator determines that 
there is no reasonable possibility that the total 
emissions from the entire source category which 
are taxable under this section will exceed 
250,000 metric tons per year of carbon dioxide 
equivalent within any of the five years following 
such determination. 
‘‘(4) ADDITION
OF
A
SOURCE
CATEGORY
TO 
THE LIST.—The Administrator may add a source 
category to this list only if the Administrator deter-
mines that— 
‘‘(A) the total emissions from the entire 
source category which are taxable under this 
section have been greater than 250,000 metric 
tons per year of carbon dioxide equivalent in 
any two years out of the preceding five years, 
‘‘(B) the average emissions from facilities 
in the source category which are taxable under 
this section have been greater than 25,000 met-
ric tons per year of carbon dioxide equivalent in 
the years in which emissions from the entire 
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source category have been greater than 250,000 
tons per year, and 
‘‘(C) there is a reasonable possibility that 
the total emissions from the entire source cat-
egory which are taxable under this section will 
be greater than 250,000 metric tons per year of 
carbon dioxide equivalent in any year within the 
next five years following such determination. 
‘‘(c) RATE OF TAX.—The rate of tax shall be the 
same as the rate given in section 9901(b)(2). 
‘‘(d) BY WHOM PAID.—The tax imposed by sub-
section (a) shall be paid by the owner or operator of the 
point of taxation. 
‘‘(e) POINT OF TAXATION.—The point of taxation 
shall be any facility in a source category which emits more 
than 25,000 metric tons of carbon dioxide equivalent sub-
ject to taxation under this section in any calendar year. 
‘‘SEC. 9903. IMPOSITION OF TAX ON GREENHOUSE GAS 
EMISSIONS FROM CERTAIN PRODUCT USES. 
‘‘(a) IN GENERAL.—There is hereby imposed a tax 
on non-fossil-fuel-greenhouse-gas emissions by certain 
manufactured products when used for their intended pur-
poses that are manufactured within or imported into, the 
United States. 
‘‘(b) LIST OF PRODUCTS.— 
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‘‘(1) INITIAL LIST.—The Congress establishes 
for purposes of this section a list of products subject 
to this section as follows: 
‘‘(A) Fuel ethanol. 
‘‘(B) Industrial carbonates. 
‘‘(C) Carbon dioxide urea. 
‘‘(D) Soda ash. 
‘‘(E) Nitrous oxide. 
‘‘(F) Biodiesel. 
‘‘(G) Solid biomass fuels. 
‘‘(2) REVISION OF THE LIST.—The Adminis-
trator shall review the list of products established by 
this subsection not less than once every five years to 
determine if they should continue to be listed and 
publish the results of that review. The Administrator 
may, if appropriate, add any product to this list by 
rule. 
‘‘(3) REMOVAL
OF
A
PRODUCT
FROM
THE 
LIST.—The Administrator may remove a product 
from this list only if— 
‘‘(A) the total emissions from all of the 
product used within the United States has been 
less than 250,000 metric tons per year of car-
bon dioxide equivalent for each of three con-
secutive years, and 
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‘‘(B) the Administrator determines that 
there is no reasonable possibility that the total 
emissions from all of the product used in the 
United States will exceed 250,000 metric tons 
per year of carbon dioxide equivalent within any 
of the five years following such determination. 
‘‘(4) ADDITION OF A PRODUCT TO THE LIST.— 
The Administrator may add a product to this list 
only if the Administrator determines that— 
‘‘(A) the total emissions from all of the 
product used within the United States has been 
greater than 250,000 metric tons per year of 
carbon dioxide equivalent in any two years out 
of the preceding five years, and 
‘‘(B) there is a reasonable possibility that 
the total emissions from all of the product used 
within the United States will be greater than 
250,000 metric tons per year of carbon dioxide 
equivalent in any year within the next five years 
following such determination. 
‘‘(c) RATE OF TAX.—The rate of tax shall be the 
same as the rate given in section 9901(b)(2). 
‘‘(d) BY WHOM PAID.—The tax imposed by sub-
section (a) shall be paid— 
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‘‘(1) for products manufactured in the United 
States, by the owner or operator of the point of tax-
ation, and 
‘‘(2) for products imported into the United 
States, by the owner of the product when it enters 
the United States. 
‘‘(e) POINT OF TAXATION.—The point of taxation 
shall be— 
‘‘(1) for products manufactured in the United 
States, the manufacturing facility, 
‘‘(2) for products imported into the United 
States, the point at which it first enters the United 
States, and 
‘‘(3) for domestically produced biomass fuel by 
a facility that emits from combusted biomass fuel 
more than 25,000 metric tons of carbon dioxide 
equivalent greenhouse gases in a year, the facility 
that combusts the biomass fuel. 
‘‘SEC. 9904. CALCULATION OF TAXABLE EMISSIONS. 
‘‘(a) HOW TO CALCULATE TAXABLE EMISSIONS.— 
In consultation with the Department of Energy, the Ad-
ministrator shall establish by rule (and may, from time 
to time, revise) the method by which taxable emissions 
under this part shall be calculated. 
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‘‘(b) CATEGORIES
AND SUBCATEGORIES CONSID-
ERED.—For purposes of calculating emissions taxable 
under— 
‘‘(1) section 9901, the Administrator shall de-
termine by rule the amount of carbon dioxide equiv-
alent that would be emitted if each fossil fuel were 
combusted, and the Administrator may establish by 
rule such subcategories of each fuel and the means 
by which it is combusted as the Administrator deems 
appropriate, 
‘‘(2) section 9902, the Administrator may de-
termine by rule such subcategories of any industrial 
process category listed in subsection 9902(b) as the 
Administrator deems appropriate, and 
‘‘(3) section 9903, for fuel ethanol, biodiesel, 
and solid biomass fuels the Administrator shall de-
termine by rule the amount of carbon dioxide equiv-
alent that would be emitted based on the lifecycle 
greenhouse gas emissions of the product (excluding 
emissions from fossil fuels that have passed through 
a point of taxation), and the Administrator may de-
termine by rule such subcategories of manufactured 
products listed in subsection 9903(b) as the Admin-
istrator deems appropriate. 
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‘‘(c) METHODS.—Where greenhouse gas emissions 
subject to taxation under any section of this part are com-
bined with greenhouse gas emissions subject to taxation 
under any other section of this part, the Administrator 
shall ensure, to the greatest degree possible, that the 
methods required to determine the emissions taxable 
under any section of this part do not include any emissions 
taxable under any other section of this part. 
‘‘(d) METHOD COST DIFFERENCES.—The Adminis-
trator shall not require the use of any method to calculate 
taxable emissions whereby the difference in cost of the 
method compared to the next cheapest alternative method 
is greater than the amount of the tax that would be paid 
on the additional emissions determined by the more expen-
sive method. 
‘‘(e) PUBLICATION OF REGULATIONS.—The Adminis-
trator shall publish the regulations required by this section 
no later than one year prior to the start of the calendar 
year referred to in section 9901(b)(2)(A). The Secretary 
may not collect the tax imposed by any section in this part 
for any calendar year that begins less than one year after 
the regulations applicable to each such section are pub-
lished. 
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‘‘SEC. 9905. CREDIT FOR STATE PAYMENTS. 
‘‘(a) CREDIT FOR PAYMENTS.—The Secretary shall 
allow any person who is required to make payment for 
greenhouse gas emissions under this part a credit for pay-
ments made on those emissions required under any State 
law in the following manner: 
‘‘(1) For the year given in section 9901(b)(2), 
a credit equal to 100 percent of the amount paid 
pursuant to requirements of State law. 
‘‘(2) For the first year following the year used 
in paragraph (1), a credit equal to 80 percent of the 
amount paid pursuant to requirements of State law. 
‘‘(3) For the second year following the year 
used in paragraph (1), a credit equal to 60 percent 
of the amount paid pursuant to requirements of 
State law. 
‘‘(4) For the third year following the year used 
in paragraph (1), a credit equal to 40 percent of the 
amount paid pursuant to requirements of State law. 
‘‘(5) For the fourth year following the year 
used in paragraph (1), a credit equal to 20 percent 
of the amount paid pursuant to requirements of 
State law. 
‘‘(b) NO CREDIT.—For all years following the year 
used in paragraph (5), no credit shall be allowed. 
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‘‘SEC. 9906. PENALTIES FOR NONPAYMENT. 
‘‘Any person who fails to comply with the require-
ments of section 9901, 9902, or 9903 shall be liable for 
payment to the Secretary, without demand, of a penalty 
in the amount equal to 3 times the applicable amount 
specified by those sections for the same tax year as the 
year in which the person failed to comply with such re-
quirements. 
‘‘SEC. 9907. DEFINITIONS. 
‘‘Unless otherwise provided, the definitions provided 
herein are applicable to all provisions of this subtitle. 
‘‘(1) ADMINISTRATOR.—The term ‘Adminis-
trator’ means the Administrator of the Environ-
mental Protection Agency. 
‘‘(2) CARDON
DIOXIDE
EQUIVALENT.—The 
term ‘carbon dioxide equivalent’ means the number 
of metric tons of CO2 emissions with the same global 
warming potential over a 100-year period as one 
metric ton of another greenhouse gas. 
‘‘(3) COAL.—The term ‘coal’ means any of the 
recognized classifications and ranks of coal, includ-
ing anthracite, bituminous, semibituminous, subbitu-
minous, lignite, and peat. 
‘‘(4) COAL
PREPARATION
AND
PROCESSING 
PLANT.—The term ‘coal preparation and processing 
plant’ means any facility (excluding underground 
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mining operations) which prepares coal by one or 
more of the following processes: breaking, crushing, 
screening, wet or dry cleaning, and thermal drying. 
‘‘(5) ENHANCED
OIL
RECOVERY.—The term 
‘enhanced oil recovery’ has the meaning defined at 
section 1.193–1(b)(2) of title 26, Code of Federal 
Regulations, as in effect on the date of enactment of 
this section. 
‘‘(6) FACILITY.—The term ‘facility’ means any 
physical property, plant, building, structure, source, 
or stationary equipment located on one or more con-
tiguous or adjacent properties in actual physical con-
tact or separated solely by a public roadway or other 
public right-of-way and under common ownership or 
common control, that emits or may emit any green-
house gas. 
‘‘(7) FOSSIL
FUEL.—The term ‘fossil fuel’ 
means coal, petroleum products, or natural gas. 
‘‘(8) GREENHOUSE GAS.—The term ‘greenhouse 
gas’ means carbon dioxide, nitrous oxide, methane, 
hydrofluorocarbons, perfluorocarbons, and sulfur 
hexafluoride. 
‘‘(9) GREENHOUSE GAS EFFECTS.—The term 
‘greenhouse gas effects’ means the adverse effects of 
greenhouse gasses on health or welfare caused by 
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the greenhouse gas’s heat-trapping potential or its 
effect on ocean acidification. 
‘‘(10) LIFECYCLE
GREENHOUSE
GAS
EMIS-
SIONS.—The term ‘lifecycle greenhouse gas emis-
sions’ has the meaning given that term in section 
211 of the Clear Air Act. 
‘‘(11) NATURAL GAS.—The term ‘natural gas’ 
means any fuel consisting in whole or in part of nat-
ural gas, including components of natural gas such 
as methane and ethane; liquid petroleum gas; syn-
thetic gas derived from coal, petroleum, or natural 
gas liquids; or any mixture of natural gas and syn-
thetic gas. 
‘‘(12) PETROLEUM PRODUCTS.—The term ‘pe-
troleum products’ means unfinished oils, liquefied 
petroleum gases, pentanes plus, aviation gasoline, 
motor gasoline, naphtha-type jet fuel, kerosene-type 
jet fuel, kerosene, distillate fuel oil, residual fuel oil, 
petrochemical feedstocks, special naphthas, lubri-
cants, waxes, petroleum coke, asphalt, road oil, still 
gas, and miscellaneous products obtained from the 
processing of crude oil (including lease condensate), 
natural gas, and other hydrocarbon compounds. The 
term does not include natural gas, liquefied natural 
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gas, biofuels, methanol, and other nonpetroleum 
fuels. 
‘‘(13) PUBLISH.—The term ‘publish’ means 
publication in the Federal Register. 
‘‘(14) REFINERY.—The term ‘refinery’ means 
any facility engaged in producing gasoline, kerosene, 
distillate fuel oils, residual fuel oils, lubricants, or 
other products through distillation of petroleum or 
through redistillation, cracking, or reforming of un-
finished petroleum derivatives. 
‘‘(15) OWNER.—The term ‘owner’ with respect 
to any fossil fuel means any person who has legal 
title to the fossil fuel. 
‘‘(16) OWNER OR OPERATOR.—The term ‘owner 
or operator’ with respect to any fossil fuel means 
any person who has legal title to the fossil fuel. 
‘‘(17) SEQUESTERS.—The term ‘sequesters’ 
means the permanent storage of carbon dioxide or 
other greenhouse gas such that it does not escape 
into the atmosphere, and is in compliance with the 
regulations issued pursuant to section 45Q(f)(2). 
‘‘(18) SOLID
BIOMASS.—The term ‘solid bio-
mass’ means nonfossilized and biodegradable organic 
material originating from plants, animals, or micro-
organisms, including products, byproducts, residues 
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and waste from agriculture, forestry, and related in-
dustries as well as the nonfossilized and biodegrad-
able organic fractions of industrial and municipal 
wastes, but does not include gases and liquids recov-
ered from the decomposition of nonfossilized and 
biodegradable organic material. 
‘‘(19) SOURCE CATEGORY.—The term ‘source 
category’ means any category or subcategory regu-
lated under part 60 of title 40, Code of Federal Reg-
ulations, or part 90 of title 40, Code of Federal Reg-
ulations.’’. 
(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—Greenhouse Gas 
Emissions’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to emissions after the later of De-
cember 31, 2025, and the date that is one year after the 
date regulations are promulgated under section 9914 of 
the Internal Revenue Code of 1986. 
SEC. 102. BORDER GREENHOUSE GAS ADJUSTMENTS. 
(a) IN GENERAL.—Subtitle L of the Internal Rev-
enue Code of 1986, as added by subsection (a), is further 
amended by adding at the end the following new part: 
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‘‘PART 2—TAX ADJUSTMENTS FOR IMPORTS AND 
EXPORTS OF GREENHOUSE GAS INTENSIVE 
PRODUCTS 
‘‘Sec. 9911. Purposes. 
‘‘Sec. 9912. Definitions. 
‘‘Sec. 9913. Notification of foreign countries. 
‘‘Sec. 9914. Border tax adjustment rate. 
‘‘SEC. 9911. PURPOSES. 
‘‘(a) PURPOSES OF PART.—The purposes of this part 
are— 
‘‘(1) to promote a strong global effort to signifi-
cantly reduce greenhouse gas emissions, and 
‘‘(2) to prevent carbon leakage. 
‘‘(b) ADDITIONAL PURPOSES OF PART.—The pur-
poses of this part are additionally— 
‘‘(1) to provide a rebate to exporters in domes-
tic eligible industrial sectors for the greenhouse gas 
emission costs of the owners and operators incurred 
under this title, but not for costs associated with 
other related or unrelated market dynamics, 
‘‘(2) to ensure that imports from other coun-
tries, and, in particular, fast-growing developing 
countries, do not enjoy competitive advantages be-
cause of the carbon tax liability of domestic manu-
facturers, and therefore increase their emissions, 
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‘‘(3) to encourage foreign countries to take sub-
stantial action with respect to their greenhouse gas 
emissions, and 
‘‘(4) to ensure that the measures described in 
this subpart are designed and implemented in a 
manner consistent with applicable international 
agreements to which the United States is a party. 
‘‘SEC. 9912. DEFINITIONS. 
‘‘In this part: 
‘‘(1) CARBON
LEAKAGE.—The term ‘carbon 
leakage’ means any substantial increase (as deter-
mined by the Secretary) in greenhouse gas emissions 
by entities located in other countries caused by a 
cost of production increase in the United States re-
sulting from implementation of this title. 
‘‘(2) BORDER
TAX
ADJUSTMENT.—The term 
‘border tax adjustment’ means the levying of a tax 
on imported covered goods equivalent to the amount 
of tax paid pursuant to part 1 of this subtitle in the 
manufacture of comparable domestic manufactured 
goods, and the rebating of the tax paid pursuant to 
part 1 of this subtitle that has been paid on covered 
goods exported from the United States. 
‘‘(3) BORDER
TAX
ADJUSTMENT
RATE.—The 
term ‘border tax adjustment rate’ means the amount 
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of tax that would be paid on a covered good pro-
duced in the United States in the current year. 
‘‘(4) 
COMMISSIONER.—The 
term 
‘Commis-
sioner’ means the Commissioner of United States 
Customs and Border Protection. 
‘‘(5) COVERED GOOD.—The term ‘covered good’ 
means a good that is— 
‘‘(A) entered under a heading or sub-
heading of the Harmonized Tariff Schedule of 
the United States that corresponds to the 
NAICS code for an eligible industrial sector, as 
established in the concordance between NAICS 
codes and the Harmonized Tariff Schedule of 
the United States prepared by the United 
States Census Bureau, or 
‘‘(B) a manufactured item for consump-
tion. 
‘‘(6) ELIGIBLE
INDUSTRIAL
SECTOR.—The 
term ‘eligible industrial sector’ means an industrial 
sector determined by the Secretary under section 
9913. 
‘‘(7) INDUSTRIAL SECTOR.—The term ‘indus-
trial sector’ means any sector that— 
‘‘(A) is in the manufacturing sector (as de-
fined in NAICS codes 31, 32, and 33), or 
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‘‘(B) is part of, or an entire, sector that 
beneficiates or otherwise processes (including 
agglomeration) metal ores, including iron and 
copper ores, soda ash, and phosphate. The term 
‘industrial sector’ does not include any part of 
a sector that extracts fossil fuels, metal ores, 
soda ash, or phosphate. 
‘‘(8) MANUFACTURED
ITEM
FOR
CONSUMP-
TION.—The term ‘manufactured item for consump-
tion’ means any good— 
‘‘(A) that includes in substantial quantities 
one or more goods like the goods produced by 
an eligible industrial sector, and 
‘‘(B) for which the Secretary has deter-
mined, with the concurrence of the Commis-
sioner, that the application of the border tax 
adjustment program pursuant to this part is 
technically and administratively feasible and ap-
propriate to achieve the purposes of this part, 
taking into account the greenhouse gas inten-
sity, and where appropriate the trade intensity, 
of the industrial sector that produces the good, 
as measured consistent with section 9913 and 
the ability of the producers to recover cost in-
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creases in the marketplace and other appro-
priate factors. 
‘‘(9) NAICS.—The term ‘NAICS’ means the 
North American Industrial Classification System of 
2002. 
‘‘(10) OUTPUT.—The term ‘output’ means the 
total tonnage or other standard unit of production 
(as determined by the Secretary) produced by an en-
tity in an industrial sector. 
‘‘SEC. 9913. NOTIFICATION OF FOREIGN COUNTRIES. 
‘‘(a) IN GENERAL.—As soon as practicable after the 
date of the enactment of the Modernizing America with 
Rebuilding to Kickstart the Economy of the Twenty-first 
Century with a Historic Infrastructure-Centered Expan-
sion Act, the President shall notify each foreign country— 
‘‘(1) requesting the foreign country to take ap-
propriate measures to limit the greenhouse gas emis-
sions of the foreign country, and 
‘‘(2) indicating that a border tax adjustment 
may apply to covered goods imported into and ex-
ported from the United States. 
‘‘(b) LISTS.— 
‘‘(1) IN GENERAL.—Not later than 1 year after 
the date of the enactment of the Modernizing Amer-
ica with Rebuilding to Kickstart the Economy of the 
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Twenty-first Century with a Historic Infrastructure- 
Centered Expansion Act, the Secretary shall promul-
gate a rule designating, based on the criteria under 
subsection (c)(2), industrial sectors where covered 
products are liable for the border tax adjustment. 
‘‘(2) CONTENT.—The list shall include the 
amount of the border tax adjustment rate for each 
covered good in the following calendar year pursuant 
to section 9914. 
‘‘(3) SUBSEQUENT LISTS.—Not later than Jan-
uary 31 of each calendar year after the calendar 
year in which the Modernizing America with Re-
building to Kickstart the Economy of the Twenty- 
first Century with a Historic Infrastructure-Cen-
tered Expansion Act is enacted, the Secretary shall 
publish in the Federal Register an updated version 
of the list published under paragraph (1). 
‘‘(c) ELIGIBLE INDUSTRIAL SECTORS.— 
‘‘(1) PRESUMPTIVELY
ELIGIBLE
INDUSTRIAL 
SECTORS.— 
‘‘(A) ELIGIBILITY CRITERIA.— 
‘‘(i) IN GENERAL.— 
‘‘(I) Imported covered goods are 
liable under this part if they are pro-
duced in the United States in an in-
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dustrial sector that is included in a 6- 
digit classification of the NAICS that 
meets the criteria in both clauses (ii) 
and (iii). 
‘‘(II) Exported covered goods are 
eligible under this part if they are 
produced in the United States in an 
industrial sector that is included in a 
6-digit classification of the NAICS 
that meets the criteria in clauses (ii) 
and (iii). 
‘‘(ii) GREENHOUSE GAS INTENSITY.— 
As determined by the Secretary, an indus-
trial sector meets the criteria of this clause 
if the United States industrial sector has a 
greenhouse gas intensity of at least 5 per-
cent, calculated by dividing— 
‘‘(I) the number of metric tons of 
carbon dioxide equivalent greenhouse 
gas emissions (including direct emis-
sions from fuel combustion, process 
emissions, and indirect emissions from 
the generation of electricity used to 
produce the output of the sector) of 
the sector based on data described in 
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subparagraph (C), multiplied by the 
applicable rate in section 9901(b)(2), 
by 
‘‘(II) the value of the shipments 
of the sector, based on data described 
in subparagraph (C). 
‘‘(iii) TRADE
INTENSITY.—As deter-
mined by the Secretary, an industrial sec-
tor meets the criteria of this clause if the 
industrial sector has a trade intensity of at 
least 15 percent, calculated by dividing— 
‘‘(I) the value of the total im-
ports and exports of the sector, by 
‘‘(II) the value of the shipments 
plus the value of imports of the sec-
tor, based on data described in sub-
paragraph (C). 
‘‘(B) METAL
AND
PHOSPHATE
PRODUC-
TION
CLASSIFIED
UNDER
MORE
THAN
ONE 
NAICS CODE.—For purposes of this section, the 
Secretary shall— 
‘‘(i) 
aggregate 
data 
for 
the 
beneficiation or other processing (including 
agglomeration) of metal ores, including 
iron and copper ores, soda ash, or phos-
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phate with subsequent steps in the process 
of metal and phosphate manufacturing, re-
gardless of the NAICS code under which 
the activity is classified, and 
‘‘(ii) aggregate data for the manufac-
turing of steel with the manufacturing of 
steel pipe and tube made from purchased 
steel in a nonintegrated process. 
‘‘(C) DATA SOURCES.— 
‘‘(i) VALUE OF SHIPMENTS.— 
‘‘(I) IN
GENERAL.—The Sec-
retary shall determine the value of 
shipments under this subsection from 
data from the United States Census 
Annual Survey of Manufacturers. 
‘‘(II) 
AVERAGE
DATA
AVAIL-
ABLE.—The Secretary shall use the 
average of data from the most recent 
3 years for which the data are avail-
able. 
‘‘(III) 
AVERAGE
DATA
NOT 
AVAILABLE.—If data described in sub-
clause (II) are unavailable, the Sec-
retary shall make a determination 
based on— 
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‘‘(aa) data from the most 
detailed industrial classification 
level of the Manufacturing En-
ergy Consumption Survey of the 
Energy Information Administra-
tion, and 
‘‘(bb) data from the most re-
cent Economic Census of the 
United States. 
‘‘(IV) DATA NOT AVAILABLE FOR 
SECTOR.—If data from the Manufac-
turing Energy Consumption Survey or 
Economic Census are unavailable for 
any sector at the 6-digit classification 
level in the NAICS, the Secretary may 
use available Manufacturing Energy 
Consumption Survey or Economic 
Census data pertaining to a broader 
industrial category classified in the 
NAICS. 
‘‘(V) DATA NOT AVAILABLE FOR 
PROCESSING.—If data relating to the 
beneficiation or other processing (in-
cluding agglomeration) of metal ores 
(including iron and copper ores, soda 
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ash, or phosphate) are not available 
from the specified data sources, the 
Secretary— 
‘‘(aa) shall use the best 
available Federal or State gov-
ernment data, and 
‘‘(bb) may use, to the extent 
necessary, 
representative 
data 
submitted by entities that per-
form the beneficiation or other 
processing (including agglomer-
ation), in making a determina-
tion. 
‘‘(ii) IMPORTS AND EXPORTS.— 
‘‘(I) IN
GENERAL.—The Sec-
retary shall base the value of imports 
and exports under this subsection on 
United States International Trade 
Commission data. 
‘‘(II) 
AVERAGE
DATA
AVAIL-
ABLE.—The Secretary shall use the 
average of data from the three most 
recent years for which the data are 
available. 
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‘‘(III) 
AVERAGE
DATA
NOT 
AVAILABLE.—If data from the United 
States International Trade Commis-
sion are unavailable for any sector at 
the 6-digit classification level in the 
NAICS, the Secretary may use United 
States International Trade Commis-
sion data pertaining to a broader in-
dustrial category classified in the 
NAICS. 
‘‘(iii) PERCENTAGES.—The Secretary 
shall round the greenhouse gas intensity 
and trade intensity percentages under sub-
paragraph (A) to the nearest whole num-
ber. 
‘‘(iv) GREENHOUSE
GAS
EMISSION 
CALCULATIONS.—When 
calculating 
the 
metric tons of carbon dioxide equivalent 
greenhouse gas emissions for each sector 
under subparagraph (A)(ii)(I), the Sec-
retary— 
‘‘(I) shall use the best available 
data from the three most recent years 
for which the data are available, and 
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‘‘(II) may, to the extent nec-
essary with respect to a sector, use 
economic and engineering models and 
the best available information on tech-
nology performance levels for the sec-
tor. 
‘‘(2) ADMINISTRATIVE DETERMINATION OF AD-
DITIONAL ELIGIBLE INDUSTRIAL SECTORS.— 
‘‘(A) UPDATED TRADE INTENSITY DATA.— 
The Secretary shall designate as liable for the 
border tax adjustment rate on imported prod-
ucts under this part an industrial sector that— 
‘‘(i) met the greenhouse gas intensity 
criteria in paragraph (1)(A)(ii) as of the 
date of promulgation of the rule under 
paragraph (1), and 
‘‘(ii) meets the trade intensity criteria 
established under paragraph (1)(A)(iii), 
using data sources described in paragraph 
(1)(C) from any year after the passage of 
this Act. 
‘‘(B) INDIVIDUAL SHOWING PETITION.— 
‘‘(i) PETITION.—In addition to des-
ignation under subparagraph (A), the 
owner or operator of an entity or a group 
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of entities that collectively produce not less 
than 80 percent of the average annual 
value of shipments from within the sector 
of the group consistent with subclause (I), 
that manufacture similar products in an 
industrial sector may petition the Sec-
retary to designate as eligible industrial 
sectors under this part an entity or a 
group of entities that— 
‘‘(I) represent a sector using a 
standard product classification, and 
‘‘(II) meet the respective import 
and/or export eligibility criteria in 
paragraph (1)(A)(i). 
‘‘(ii) DATA.—In making a determina-
tion under this subparagraph, the Sec-
retary shall consider— 
‘‘(I) data submitted by the peti-
tioner, 
‘‘(II) data solicited by the Sec-
retary from other entities in the sec-
tor, and 
‘‘(III) data specified in para-
graph (1)(C). 
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‘‘(iii) BASIS
OF
SUBSECTOR
DETER-
MINATION.— 
‘‘(I) IN
GENERAL.—Except as 
provided in subclause (II), the Sec-
retary shall determine an entity or 
group of entities to be a subsector of 
a 6-digit section of the NAICS code 
based only on the products manufac-
tured and not the industrial process 
by which the products are manufac-
tured. 
‘‘(II) TYPE OF MATERIAL.—The 
Secretary may determine an entity or 
group of entities that manufacture a 
product from primarily virgin material 
to be a separate subsector from an-
other entity or group of entities that 
manufacture the same product pri-
marily from recycled material. 
‘‘(iv) USE OF MOST RECENT DATA.— 
In determining whether to designate a sec-
tor or subsector as an eligible industrial 
sector under this subparagraph, the Sec-
retary shall use the most recent data avail-
able from the sources described in para-
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graph (1)(C), rather than the data from 
the years specified in paragraph (1)(C), to 
determine the trade intensity of the sector 
or subsector, but only for determining the 
trade intensity. 
‘‘(v) FINAL
ACTION.—The Secretary 
shall take final action on a petition de-
scribed in this subparagraph not later than 
180 days after the date the completed peti-
tion is received by the Secretary. 
‘‘(3) CESSATION OF QUALIFYING ACTIVITIES.— 
If, as determined by the Secretary, an industrial sec-
tor or a covered good within the sector is no longer 
liable to be designated under this section, the Com-
missioner shall cease to apply the border tax adjust-
ment on the relevant covered goods with effect from 
January 1 of the following year. 
‘‘SEC. 9914. BORDER TAX ADJUSTMENT RATE. 
‘‘(a) ESTABLISHMENT.—The Secretary, with the con-
currence of the Commissioner, shall, no later than the date 
that is one year after the date of the enactment of this 
section, promulgate regulations— 
‘‘(1) establishing the products which are liable 
for, and requiring payment of, the border tax adjust-
ment rate, 
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‘‘(2) establishing a general methodology for cal-
culating the level of the border tax adjustment rate 
that a domestic importer of any covered good must 
submit and the rebate that an exporter will receive, 
‘‘(3) establishing an administrative process 
whereby any determination by the Secretary under 
this subsection may be appealed, 
‘‘(4) exempting from this section products that 
originate from— 
‘‘(A) any country that the United Nations 
has identified as among the least developed of 
developing countries, or 
‘‘(B) any country that the President has 
determined to be responsible for less than 0.5 
percent of total global greenhouse gas emissions 
and less than 5 percent of global production in 
the eligible industrial sector, 
‘‘(5) specifying the procedures that the Com-
missioner will apply for the declaration and entry of 
covered goods with respect to the eligible industrial 
sector into the customs territory of the United 
States, and 
‘‘(6) establishing procedures that prevent cir-
cumvention of the carbon tax liability for covered 
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goods that are manufactured or processed in more 
than one foreign country. 
‘‘(b) PRESIDENTIAL DISCRETION.—The President 
may elect not to levy the border tax adjustment for an 
eligible industrial sector or for specific products within 
that sector if the President determines and certifies to 
Congress that the program would not be in the national 
interest, economic interest, or environmental interest of 
the United States.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to emissions after the later of De-
cember 31, 2025, and the date that is one year after the 
date regulations are promulgated under section 9914 of 
the Internal Revenue Code of 1986. 
TITLE 
II—DISTRIBUTION 
OF 
REVENUES FROM TAXATION 
OF GREENHOUSE GAS EMIS-
SIONS 
Subtitle A—Rebuilding Infrastruc-
ture and Solutions for the Envi-
ronment Trust Fund 
SEC. 201. ESTABLISHMENT OF THE RISE TRUST FUND. 
There is hereby created in the Treasury of the United 
States a trust fund to be known as the ‘‘Rebuilding Infra-
structure and Solutions for the Environment Trust Fund’’ 
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(hereafter in this Act referred to as the ‘‘RISE Trust 
Fund’’), consisting of amounts paid into the Treasury pur-
suant to subtitle L of the Internal Revenue Code of 1986 
(as added by title I of this Act), and 75 percent of such 
amounts are hereby appropriated and transferred to the 
RISE Trust Fund. 
SEC. 202. APPROPRIATIONS FROM THE RISE TRUST FUND. 
(a) IN GENERAL.—Amounts in the RISE Trust 
Fund for a fiscal year shall be available, as provided by 
appropriation Acts, as follows: 
(1) 70 percent for each of the fiscal years 2027 
through 2036 to the Highway Trust Fund. 
(2) 1.5 percent for each of the fiscal years 2027 
through 2036 for the weatherization program devel-
oped under part A of title IV of the Energy Con-
servation and Production Act (42 U.S.C. 6861 et 
seq.). 
(3) 3 percent for each of the fiscal years 2027 
through 2036 for assistance for displaced energy 
workers under section 321. 
(4) 2.5 percent for each of the fiscal years 2027 
through 2036 to the Airport and Airway Trust Fund 
under section 9502 of the Internal Revenue Code of 
1986. 
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(5) 0.1 percent for each of the fiscal years 2027 
through 2036 to the Leaking Underground Storage 
Trust Fund under section 9508 of the Internal Rev-
enue Code of 1986. 
(6) 1.5 percent for each of the fiscal years 2027 
through 2036 to the Abandoned Mine Reclamation 
Fund under section 401 of the Surface Mining Con-
trol and Reclamation Act of 1977 (30 U.S.C. 1231). 
(7) 4 percent for each of the fiscal years 2027 
through 2036 for frequent and chronic coastal flood-
ing mitigation and adaptation infrastructure projects 
under section 302. 
(8) 1.5 percent for each of the fiscal years 2027 
through 2036 for Advanced Research Projects Agen-
cy-Energy under section 5012 of the America COM-
PETES Act (42 U.S.C. 16538). 
(9) 0.7 percent for each of the fiscal years 2027 
through 2036 for the Carbon Capture Research and 
Development Program of the National Energy Tech-
nology Laboratory, Office of Fossil Energy, Depart-
ment of Energy. 
(10) 0.5 percent for each of the fiscal years 
2027 through 2036 for assistance for Carbon Stor-
age DOE Fossil Energy Research, Development, and 
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Demonstration Program Areas, Coal Program Area 
(Carbon Storage). 
(11) 0.5 percent for each of the fiscal years 
2027 through 2036 for assistance to the National 
Energy Technology Laboratory of the Office of Fos-
sil Energy for the research and development of car-
bon removal technologies. 
(12) 0.3 percent for each of the fiscal years 
2027 through 2036 to the Secretary of Energy for 
research and development to identify and assess 
novel uses for carbon oxides, including the conver-
sion of carbon dioxide for commercial and industrial 
products, such as chemicals, plastics, building mate-
rials, fuels, cement, products of coal use in power 
systems or other applications, or other products with 
demonstrated market value. 
(13) 0.2 percent for each of the fiscal years 
2027 through 2036 to the Secretary of Energy to 
provide grants to entities constructing common car-
rier pipeline infrastructure to transport anthropo-
genic carbon dioxide for the incremental cost of pro-
viding extra capacity for future carbon dioxide trans-
port needs. 
(14) 0.5 percent for each of the fiscal years 
2027 through 2036 for research and development re-
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lating to energy storage by battery through the Of-
fice of Electricity, Department of Energy. 
(15) 10 percent for each of the fiscal years 
2027 through 2036 for State grants under section 
203. 
(16) 1 percent for each of the fiscal years 2027 
through 2036 to the Reforestation Trust Fund (16 
U.S.C. 1606a). 
(17) 0.1 percent for each of the fiscal years 
2027 through 2036 for assistance through coopera-
tive agreements to decrease the environmental im-
pact of energy-related activities pursuant to section 
931 of the Energy Policy Act of 2005 (42 U.S.C. 
16231). 
(18) 1.6 percent for each of the fiscal years 
2027 through 2036 for the environmental quality in-
centives program under chapter 4 of subtitle D of 
title XII of the Food Security Act of 1985 (16 
U.S.C. 3839aa et seq.) for payments to producers to 
implement practices that promote improvements 
identified in subparagraphs (A) and (C) of section 
1240B(d)(3) of such Act (16 U.S.C. 3839aa–2). 
(19) 0.5 percent for each of fiscal years 2027 
through 2036 for the regional conservation partner-
ship program under section 1271 of the Food Secu-
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rity Act of 1985 (16 U.S.C. 3871) for eligible activi-
ties on eligible land through partnership agreements 
with eligible partners and contracts with producers 
that address one of the following goals: 
(A) Soil health. 
(B) Nutrient management. 
(C) Forest restoration. 
(D) Reduction of methane emissions. 
(E) Other related activities that the Sec-
retary determines will help achieve conservation 
benefits and increase carbon sequestration or 
reduce greenhouse gas emissions. 
(b) CARBON REMOVAL.—For purposes of subsection 
(a)(11), the term ‘‘carbon removal technologies’’ includes: 
(1) Direct air capture and storage technologies, 
which shall not include any equipment which cap-
tures carbon dioxide which is deliberately released 
from naturally occurring subsurface springs or using 
natural photosynthesis. 
(2) Bioenergy with carbon capture and seques-
tration. 
(3) Enhanced geological weathering. 
(4) Agricultural and grazing practices. 
(5) Forest management and afforestation. 
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(6) Planned or managed carbon sinks, including 
natural and artificial. 
(c) WAGE RATE REQUIREMENTS.—Notwithstanding 
any other provision of law and in a manner consistent with 
other provisions in this Act, all laborers and mechanics 
employed by contractors and subcontractors on projects 
funded directly by or assisted in whole or in part by and 
through the Federal Government pursuant to this Act 
shall be paid wages at rates not less than those prevailing 
on projects of a character similar in the locality as deter-
mined by the Secretary of Labor in accordance with sub-
chapter IV of chapter 31 of title 40, United States Code. 
With respect to the labor standards specified in this sec-
tion, the Secretary of Labor shall have the authority and 
functions set forth in Reorganization Plan Numbered 14 
of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 
of title 40, United States Code. 
(d) CONFORMING AMENDMENTS.— 
(1) LEAKING
UNDERGROUND
STORAGE
TANK 
TRUST FUND.—Section 9508(b) of the Internal Rev-
enue Code of 1986 is amended— 
(A) by striking ‘‘and’’ at the end of para-
graph (3), 
(B) by striking the period at the end of 
paragraph (4) and inserting ‘‘, and’’, and 
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(C) by inserting after paragraph (4) the 
following: 
‘‘(5) amounts made available to the Leaking 
Underground Storage Tank Trust Fund from the 
RISE Trust Fund under section 202(a)(5) of the 
Modernizing America with Rebuilding to Kickstart 
the Economy of the Twenty-first Century with a 
Historic Infrastructure-Centered Expansion Act.’’. 
(2) REFORESTATION TRUST FUND.— 
(A) SOURCE OF FUNDS.—Section 303(a) 
of the Act of October 14, 1980 (16 U.S.C. 
1606a(a)) is amended by striking ‘‘subsection 
(b)(1)’’ and inserting ‘‘paragraph (1) or (4) of 
subsection (b)’’. 
(B) SPECIAL RULE RELATING TO LIMITA-
TION.—Section 303(b) of the Act of October 
14, 1980 (16 U.S.C. 1606a(b)) is amended by 
adding at the end the following: 
‘‘(4) Not later than 9 months after the enact-
ment of the Modernizing America with Rebuilding to 
Kickstart the Economy of the Twenty-first Century 
with a Historic Infrastructure-Centered Expansion 
Act, the Secretary shall transfer to the Trust Fund 
the 
amounts 
made 
available 
under 
section 
202(a)(13) of such Act.’’. 
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SEC. 203. STATE GRANTS. 
(a) IN GENERAL.—From amounts made available 
under section 202(a)(15), the Secretary of the Treasury 
shall make a annual grant to each State (hereafter in this 
section referred to as ‘‘State grant’’) to distribute to eligi-
ble low-income households in accordance with this section. 
(b) ELIGIBLE LOW-INCOME HOUSEHOLD.—A house-
hold shall be considered to be an eligible low-income house-
hold for purposes of this section if— 
(1) except as provided in subsection (d)(4), the 
gross income of the household does not exceed 150 
percent of the poverty line; 
(2) the appropriate State agency for the State 
in which the household is located determines that 
the household is participating in— 
(A) the Supplemental Nutrition Assistance 
Program authorized by the Food and Nutrition 
Act of 2008 (7 U.S.C. 2011 et seq.); 
(B) the Food Distribution Program on In-
dian Reservations authorized by section 4(b) of 
such Act (7 U.S.C. 2013(b)); or 
(C) the program for nutrition assistance in 
Puerto Rico or American Samoa under section 
19 of such Act (7 U.S.C. 2028); 
(3) the household consists of a single individual 
or a married couple, and— 
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(A) receives the subsidy described in sec-
tion 1860D–14 of the Social Security Act (42 
U.S.C. 1395w–114); or 
(B)(i) participates in the program under 
title XVIII of the Social Security Act; and 
(ii) meets the income requirements de-
scribed in section 1860D–14(a)(1) or (a)(2) of 
the Social Security Act (42 U.S.C. 1395w– 
114(a)(1) or (a)(2)); or 
(4) the household consists of a single individual 
or a married couple, and receives benefits under the 
supplemental security income program under title 
XVI of the Social Security Act (42 U.S.C. 1381– 
1383f). 
(c) AMOUNT.—The Secretary of the Treasury, in con-
sultation with the Secretary of Energy and the Adminis-
trator of the Environmental Protection Agency, shall de-
termine the amount of each State grant in proportion to 
the percentage of total United States greenhouse gas emis-
sions attributable to electricity, natural gas, gasoline, die-
sel, and fuel ethanol sold in such State during the pre-
ceding calendar year. 
(d) RULE RELATING TO PROCESS.—Not later than 
1 year after the enactment of this Act, the Secretary of 
the Treasury shall establish by rule a date in each year 
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