Title: American Opportunity Carbon Fee Act of 2017
Policy area: Taxation

Summary:
American Opportunity Carbon Fee Act of 2017
This bill amends the Internal Revenue Code to impose fees on: (1) fossil fuel products producing carbon dioxide emissions, including coal, petroleum products, and natural gas; (2) fluorinated greenhouse gases; (3) emissions of any greenhouse gas from any greenhouse gas emissions source; and (4) associated emissions (attributable to venting, flaring, and leakage across the supply chain).
The bill directs the Department of the Treasury to:
The bill also: (1) reduces the maximum income tax rate on corporations to 29% of taxable income over $75,000; and (2) allows a new carbon fee offset tax credit for the lesser of: 6.2% of earned income, or $550.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 1639 Introduced in Senate (IS)]

<DOC>






115th CONGRESS
  1st Session
                                S. 1639

   To amend the Internal Revenue Code of 1986 to provide for carbon 
dioxide and other greenhouse gas emission fees, reduce the rate of the 
     corporate income tax, provide tax credits to workers, deliver 
 additional benefits to retired and disabled Americans, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 26, 2017

 Mr. Whitehouse (for himself and Mr. Schatz) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
   To amend the Internal Revenue Code of 1986 to provide for carbon 
dioxide and other greenhouse gas emission fees, reduce the rate of the 
     corporate income tax, provide tax credits to workers, deliver 
 additional benefits to retired and disabled Americans, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``American Opportunity Carbon Fee Act 
of 2017''.

     TITLE I--CARBON DIOXIDE AND OTHER GREENHOUSE GAS EMISSION FEES

SEC. 101. CARBON DIOXIDE AND OTHER GREENHOUSE GAS EMISSION FEES.

    (a) In General.--Chapter 38 of the Internal Revenue Code of 1986 is 
amended by adding at the end thereof the following new subchapter:

 ``Subchapter E--Carbon Dioxide and Other Greenhouse Gas Emission Fees

``Sec. 4691. Fee for carbon dioxide emissions.
``Sec. 4692. Fee on fluorinated greenhouse gases.
``Sec. 4693. Fee for other greenhouse gas emissions.
``Sec. 4694. Associated emissions.
``Sec. 4695. Border adjustments for energy-intensive manufactured 
                            goods.
``Sec. 4696. Definitions and other rules.

``SEC. 4691. FEE FOR CARBON DIOXIDE EMISSIONS.

    ``(a) In General.--
            ``(1) Fossil fuel products producing carbon emissions.--
                    ``(A) In general.--There is hereby imposed a fee in 
                an amount equal to the applicable amount at the rate 
                specified in subparagraph (B) on--
                            ``(i) coal--
                                    ``(I) removed from any mine in the 
                                United States, or
                                    ``(II) entered into the United 
                                States for consumption, use, or 
                                warehousing,
                            ``(ii) petroleum products--
                                    ``(I) removed from any refinery,
                                    ``(II) removed from any terminal, 
                                or
                                    ``(III) entered into the United 
                                States for consumption, use, or 
                                warehousing, and
                            ``(iii) natural gas--
                                    ``(I) entered into any processor, 
                                or
                                    ``(II) entered into the United 
                                States for consumption, use, or 
                                warehousing.
                    ``(B) Rate.--The rate specified in this 
                subparagraph with respect to any product described in 
                subparagraph (A) is an amount equal to the applicable 
                amount per ton of carbon dioxide that would be emitted 
                through the combustion of such product (as determined 
                by the Secretary, in consultation with the Secretary of 
                Energy and the Administrator of the Environmental 
                Protection Agency).
            ``(2) Emissions attributable to other substances.--There is 
        hereby imposed a fee in an amount equal to the applicable 
        amount per ton of carbon dioxide emitted--
                    ``(A) from any facility which--
                            ``(i) is required to report emissions, or 
                        to which emissions are attributed, under 
                        subpart A of part 98 of title 40, Code of 
                        Federal Regulations, as in effect on the date 
                        of the enactment of the American Opportunity 
                        Carbon Fee Act of 2017, and
                            ``(ii) emitted not less than 25,000 tons of 
                        carbon dioxide emissions during the previous 
                        calendar year, and
                    ``(B) by reason of the combustion or processing of 
                any product other than coal, petroleum products, and 
                natural gas.
    ``(b) Applicable Amount.--
            ``(1) In general.--For purposes of this part, the 
        applicable amount is--
                    ``(A) for calendar year 2018, $49,
                    ``(B) for any calendar year following a year which 
                is not a national emissions target attainment year, the 
                sum of--
                            ``(i) the product of the amount in effect 
                        under this subparagraph for the preceding 
                        calendar year and 102 percent, and
                            ``(ii) the inflation adjustment amount 
                        determined under paragraph (2), and
                    ``(C) for any calendar year following a year which 
                is a national emissions target attainment year, the sum 
                of--
                            ``(i) the amount in effect under this 
                        subparagraph for the preceding calendar year, 
                        and
                            ``(ii) the inflation adjustment amount 
                        determined under paragraph (2).
            ``(2) Inflation adjustment amount.--
                    ``(A) In general.--The inflation adjustment amount 
                for any calendar year shall be an amount (not less than 
                zero) equal to the product of--
                            ``(i) the amount determined under paragraph 
                        (1)(B)(i) or (1)(C)(i), as applicable, for such 
                        year, and
                            ``(ii) the percentage by which the CPI for 
                        the preceding calendar year exceeds the CPI for 
                        the second preceding calendar year.
                    ``(B) CPI.--Rules similar to the rules of 
                paragraphs (4) and (5) of section 1(f) shall apply for 
                purposes of this paragraph.
            ``(3) Rounding.--The applicable amount under this 
        subsection shall be rounded up to the next whole dollar amount.
            ``(4) National emissions target attainment year.--For 
        purposes of paragraph (1), a calendar year is a national 
        emissions target attainment year if the level of greenhouse gas 
        emissions in the United States for the calendar year does not 
        exceed 20 percent of the level of greenhouse gas emissions in 
        the United States for calendar year 2005 as determined by the 
        Secretary in consultation with the Administrator of the 
        Environmental Protection Agency.
    ``(c) Refunds for Capturing Carbon Dioxide and Production of 
Certain Goods.--
            ``(1) Carbon dioxide capture, utilization, and storage.--
                    ``(A) In general.--In the case of a person who--
                            ``(i) uses any coal, petroleum product, or 
                        natural gas for which a fee has been imposed 
                        under subsection (a)(1) in a manner which 
                        results in the emission of qualified carbon 
                        dioxide,
                            ``(ii) captures the resulting emitted 
                        qualified carbon dioxide at a qualified 
                        facility, and
                            ``(iii)(I) disposes of such qualified 
                        carbon dioxide in secure storage, or
                            ``(II) utilizes such qualified carbon 
                        dioxide in a manner provided in subparagraph 
                        (D),
                there shall be allowed a refund, in the same manner as 
                if it were an overpayment of the fee imposed by such 
                subsection, to such person in amount determined under 
                subparagraph (B).
                    ``(B) Amount of refund.--The amount of the refund 
                under this subparagraph is an amount equal to the 
                product of--
                            ``(i) the applicable amount under 
                        subsection (b) for the calendar year in which 
                        such qualified carbon dioxide was captured and 
                        disposed or utilized, and
                            ``(ii) the adjusted tons of qualified 
                        carbon dioxide captured and disposed or 
                        utilized.
                    ``(C) Adjusted total tons.--For purposes of 
                subparagraph (B), the adjusted tons of qualified carbon 
                dioxide captured and disposed or utilized shall be the 
                total tons of qualified carbon dioxide captured and 
                disposed or utilized reduced by the amount of any 
                anticipated leakage of carbon dioxide into the 
                atmosphere due to imperfect storage technology or 
                otherwise, as determined by the Secretary in 
                consultation with the Administrator of the 
                Environmental Protection Agency.
                    ``(D) Requirements.--
                            ``(i) In general.--Any refund under 
                        subparagraph (A) shall apply only with respect 
                        to qualified carbon dioxide that has been 
                        captured and disposed or utilized within the 
                        United States.
                            ``(ii) Disposal and secure storage.--
                                    ``(I) Secure storage.--The 
                                Secretary, in consultation with the 
                                Administrator of the Environmental 
                                Protection Agency and the Secretary of 
                                Energy, shall establish regulations 
                                similar to the regulations under 
                                section 45Q(d)(2) for determining 
                                adequate security measures for the 
                                secure storage of qualified carbon 
                                dioxide for purposes of subparagraph 
                                (A)(iii)(I) such that the carbon 
                                dioxide does not escape into the 
                                atmosphere. Such regulations shall 
                                ensure the stored carbon dioxide may 
                                not be sold, transferred, or exported 
                                for any purpose that results in the 
                                emission of carbon dioxide.
                                    ``(II) Recapture.--The Secretary 
                                shall, by regulations, provide for 
                                recapturing the benefit of any refund 
                                made under subparagraph (A) with 
                                respect to any qualified carbon dioxide 
                                which is disposed in secure storage and 
                                ceases to be stored in a manner 
                                consistent with the requirements of 
                                this section.
                            ``(iii) Utilization.--The Secretary, in 
                        consultation with the Administrator of the 
                        Environmental Protection Agency, shall 
                        establish regulations providing for the 
                        appropriate methods and manners for the 
                        utilization of qualified carbon dioxide under 
                        subparagraph (A)(iii)(II), including the 
                        utilization of captured carbon dioxide for 
                        enhanced oil or gas recovery and the production 
                        of substances such as plastics, biofuels, 
                        algae, and chemicals. Such regulations shall 
                        provide for the minimization of the escape or 
                        further emission of the qualified carbon 
                        dioxide into the atmosphere.
                    ``(E) Qualified carbon dioxide; qualified 
                facility.--For purposes of this paragraph--
                            ``(i) Qualified carbon dioxide.--The term 
                        `qualified carbon dioxide' has the same meaning 
                        given that term under section 45Q(b).
                            ``(ii) Qualified facility.--The term 
                        `qualified facility' has the same meaning given 
                        that term under section 45Q(c), determined 
                        without regard to paragraph (3) thereof.
            ``(2) Manufacture of certain goods.--In the case of a 
        person who uses any coal, petroleum product, or natural gas for 
        which a fee has been imposed under subsection (a)(1) as an 
        input for a manufactured good that encapsulates carbon dioxide 
        in a manner such that it does not result in the direct emission 
        of carbon dioxide in the manufacturing or subsequent use of 
        such good, a refund shall be allowed to such person in the same 
        manner as if it were an overpayment of the fee imposed by such 
        section in an amount that is equal to the product of--
                    ``(A) an amount equal to the applicable amount 
                under subsection (b) for the calendar year in which 
                such product was used, and
                    ``(B) the total tons of carbon dioxide that would 
                have otherwise been emitted through the combustion of 
                such product.
            ``(3) Exports.--In the case of a person who exports any 
        coal, petroleum product, or natural gas from the United States 
        for which a fee has been imposed under subsection (a)(1), a 
        refund shall be allowed to such person in the same manner as if 
        it were an overpayment of the fee imposed by such section in an 
        amount that is equal to the fee previously imposed under such 
        subsection with respect to such product (determined without 
        regard to any increase under section 4694).

``SEC. 4692. FEE ON FLUORINATED GREENHOUSE GASES.

    ``(a) In General.--There is hereby imposed a fee in an amount 
determined under subsection (b) on fluorinated greenhouse gases--
            ``(1) produced at a fluorinated greenhouse gas production 
        facility,
            ``(2) imported into the United States by a fluorinated 
        greenhouse gas importer, or
            ``(3) emitted by an industrial fluorinated greenhouse gas 
        facility.
    ``(b) Amount of Fee.--The amount of fee imposed by subsection (a) 
shall be equal to the applicable percentage (as defined in subsection 
(c)(5)) of the applicable amount determined under section 4691(b) per 
ton of carbon dioxide equivalent produced or imported.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Fluorinated greenhouse gases.--The term `fluorinated 
        greenhouse gases' means sulfur hexafluoride (SF6), nitrogen 
        trifluoride (NF3), any hydrofluorocarbon, any perfluorocarbon, 
        any fully fluorinated linear, branched or cyclic alkane, ether, 
        tertiary amine or aminoether, any perfluoropolyether, any 
        hydrofluoropolyether, and any other fluorocarbon except for 
        substances with vapor pressures of less than 1 mm of Hg 
        absolute at 25 degrees Celsius.
            ``(2) Fluorinated greenhouse gas production facility.--The 
        term `fluorinated greenhouse gas production facility' means any 
        facility which is included under the industrial gas supplier 
        source category under subpart OO of part 98 of title 40, Code 
        of Federal Regulations, as in effect on the date of the 
        enactment of the American Opportunity Carbon Fee Act of 2017.
            ``(3) Fluorinated greenhouse gas importer.--The term 
        `fluorinated greenhouse gas importer' means any importer who is 
        included under--
                    ``(A) the industrial gas supplier source category 
                under subpart OO of part 98 of title 40, Code of 
                Regulations, as in effect on the date of the enactment 
                of the American Opportunity Carbon Fee Act of 2017, or
                    ``(B) the source category under subpart QQ of such 
                part (as so in effect).
            ``(4) Industrial fluorinated greenhouse gas facility.--The 
        term `industrial greenhouse gas facility' means any facility 
        which--
                    ``(A) is included under--
                            ``(i) the aluminum production source 
                        category under subpart F of part 98 of title 
                        40, Code of Regulations, as in effect on the 
                        date of the enactment of the American 
                        Opportunity Carbon Fee Act of 2017,
                            ``(ii) the HCFC-22 production and HFC-23 
                        destruction source category under subpart O of 
                        such part (as so in effect), or
                            ``(iii) the fluorinated gas production 
                        source category under subpart L of such part 
                        (as so in effect), and
                    ``(B) emitted during the previous calendar year 
                fluorinated greenhouse gases with a total carbon 
                dioxide equivalent of not less than 25,000 tons.
            ``(5) Applicable percentage.--The term `applicable 
        percentage' means the percentage determined in accordance with 
        the following table:


------------------------------------------------------------------------
   ``In the case of any taxable year beginning  in       The applicable
                    calendar year:                       percentage is:
------------------------------------------------------------------------
2018, 2019, or 2020..................................         10 percent
2021.................................................         20 percent
2022.................................................         30 percent
2023.................................................         40 percent
2024.................................................         50 percent
2025.................................................         60 percent
2026.................................................         70 percent
2027.................................................         80 percent
2028.................................................         90 percent
2029 or thereafter...................................       100 percent.
------------------------------------------------------------------------

    ``(d) Exemption for Exports.--For purposes of determining 
fluorinated greenhouse gases produced or imported under subsection (a), 
there shall not be taken into account any fluorinated greenhouse gases 
exported from the United States in bulk or exported from the United 
States in equipment pre-charged with fluorinated greenhouse gases or 
containing fluorinated greenhouse gases in closed cell foams.
    ``(e) Refund for Consumptive Uses and Destruction.--In the case of 
a person who uses any fluorinated greenhouse gas for which a fee has 
been imposed under paragraph (1) or (2) of subsection (a) as an input 
for a manufactured good that transforms the fluorinated greenhouse gas 
such that it cannot later be emitted or otherwise destroys the gas 
(without emissions), a refund shall be allowed to such person in the 
same manner as if it were an overpayment of the fee imposed by such 
subsection in an amount that is equal to the product of--
            ``(1) an amount equal to the applicable percentage (as 
        defined in subsection (c)(5)) of the applicable amount under 
        section 4691(b), for the calendar year in which such 
        fluorinated greenhouse gas was used or destroyed, and
            ``(2) the excess (if any) of--
                    ``(A) the total carbon dioxide equivalent of the 
                fluorinated greenhouse gases used or destroyed, over
                    ``(B) the total carbon dioxide equivalent of any 
                fluorinated greenhouse gases created as the result of 
                the transformation or destruction process.

``SEC. 4693. FEE FOR OTHER GREENHOUSE GAS EMISSIONS.

    ``(a) In General.--There is hereby imposed a fee in an amount 
determined under subsection (b) on the emission (including attributed 
emissions) of any greenhouse gas (other than carbon dioxide or 
fluorinated greenhouse gases) from any greenhouse gas emissions source.
    ``(b) Amount of Fee.--The amount of fee imposed by subsection (a) 
shall be equal to the applicable amount determined under section 
4691(b) per ton of carbon dioxide equivalent emitted by the greenhouse 
gas emissions source.
    ``(c) Greenhouse Gas Emissions Source.--The term `greenhouse gas 
emissions source' means any facility which--
            ``(1) is required to report emissions (or which would be 
        required to report emissions notwithstanding any other 
        provision of law prohibiting the implementation of or use of 
        funds for such requirements), or to which emissions are 
        attributed, under part 98 of title 40, Code of Federal 
        Regulations, as in effect on the date of the enactment of the 
        American Opportunity Carbon Fee Act of 2017, and
            ``(2) emitted during the previous calendar year greenhouse 
        gases (not including carbon dioxide or fluorinated greenhouse 
        gases) at a rate equal to the carbon dioxide equivalent of not 
        less than 25,000 tons.

``SEC. 4694. ASSOCIATED EMISSIONS.

    ``(a) Reporting Program.--
            ``(1) In general.--Not later than January 1, 2020, the 
        Secretary, in consultation with the Administrator of the 
        Environmental Protection Agency, the Secretary of the Interior, 
        the Administrator of the Energy Information Administration, and 
        the Administrator of the Pipeline and Hazardous Materials 
        Safety Administration, shall establish and implement a program 
        to identify all major source categories of associated emissions 
        and collect data on associated emissions from the coal, 
        petroleum products, and natural gas supply chains.
            ``(2) Annual report.--Not later than 12 months after the 
        date that the Secretary implements the program described in 
        paragraph (1), and annually thereafter, the Secretary shall 
        issue a report, to be made available to the public and the 
        appropriate committees of Congress, on associated emissions, 
        including--
                    ``(A) identification of all major source categories 
                of associated emissions, and
                    ``(B) the total amount, expressed in tons of carbon 
                dioxide equivalent, of--
                            ``(i) methane and other greenhouse gases 
                        emitted across the coal supply chain within the 
                        United States during the preceding calendar 
                        year,
                            ``(ii) methane and other greenhouse gases 
                        emitted across the petroleum products supply 
                        chain within the United States during the 
                        preceding calendar year, and
                            ``(iii) methane and other greenhouse gases 
                        emitted across the natural gas supply chain 
                        within the United States during the preceding 
                        calendar year.
    ``(b) Supplementary Fee for Associated Emissions.--
            ``(1) Coal.--In the case of any calendar year beginning 
        after 2020, the fee imposed under section 4691(a)(1) with 
        respect to coal shall be increased by the amount determined by 
        the Secretary (in consultation with the Administrator of the 
        Environmental Protection Agency) necessary to ensure that the 
        total fees collected under such section with respect to coal 
        are equal to the total amount of such fees that would be 
        collected on coal if the fee imposed under section 4691(a)(1) 
        also applied to the carbon-dioxide equivalent of greenhouse gas 
        emissions reported under subsection (a)(2)(B)(i).
            ``(2) Petroleum products.--In the case of any calendar year 
        beginning after 2020, the fee imposed under section 4691(a)(1) 
        with respect to petroleum products shall be increased by the 
        amount determined by the Secretary (in consultation with the 
        Administrator of the Environmental Protection Agency) necessary 
        to ensure that the total fees collected under such section with 
        respect to petroleum products are equal to the total amount of 
        such fees that would be collected on petroleum products if the 
        fee imposed under section 4691(a)(1) also applied to the 
        carbon-dioxide equivalent of greenhouse gas emissions reported 
        under subsection (a)(2)(B)(ii).
            ``(3) Natural gas.--In the case of any calendar year 
        beginning after 2020, the fee imposed under section 4691(a)(1) 
        with respect to natural gas shall be increased by the amount 
        determined by the Secretary (in consultation with the 
        Administrator of the Environmental Protection Agency) necessary 
        to ensure that the total fees collected under such section with 
        respect to natural gas are equal to the total amount of such 
        fees that would be collected on natural gas if the fee imposed 
        under section 4691(a)(1) also applied to the carbon-dioxide 
        equivalent of greenhouse gas emissions reported under 
        subsection (a)(2)(B)(iii).

``SEC. 4695. BORDER ADJUSTMENTS FOR ENERGY-INTENSIVE MANUFACTURED 
              GOODS.

    ``(a) Purpose.--The purpose of this section is to ensure the 
environmental effectiveness of this subchapter.
    ``(b) Exports.--
            ``(1) In general.--In the case of any energy-intensive 
        manufactured good which is exported from the United States, the 
        Secretary shall pay to the person exporting such good a refund 
        equal to the amount of the cost of such good attributable to 
        any fees imposed under this subchapter on inputs used in the 
        manufacturing of such energy-intensive manufactured good (as 
        determined under regulations established by the Secretary).
            ``(2) Reduction in refund.--The amount of the refund under 
        paragraph (1) shall be reduced by the amount, if any, of fees 
        imposed on such goods or comparable domestically produced 
        energy-intensive manufactured goods by the foreign nation or 
        governmental unit to which such good is exported.
    ``(c) Imports.--
            ``(1) Imposition of equivalency fee.--In the case of any 
        energy-intensive manufactured good imported into the United 
        States, there is imposed an equivalency fee on the person 
        importing such good in an amount equal to the cost of such good 
        which would be attributable to any fees imposed under this 
        subchapter on inputs used in the manufacturing of such good if 
        the inputs used in manufacturing such good were subject to such 
        fees (as determined under regulations established by the 
        Secretary).
            ``(2) Reduction in fee.--The amount of the equivalency fee 
        under paragraph (1) shall be reduced by the amount, if any, of 
        any fees imposed on such energy-intensive manufactured goods by 
        the foreign nation or governmental units from which such good 
        was imported.
    ``(d) Treatment of Alternative Policies as Fees.--Under regulations 
established by the Secretary, foreign policies that have substantially 
the same effect in reducing emissions of greenhouse gases as fees shall 
be treated as fees for purposes of subsections (b)(2) and (c)(2).
    ``(e) Regulatory Authority.--
            ``(1) In general.--The Secretary shall consult with the 
        Administrator of the Environmental Protection Agency and the 
        Secretary of Energy in establishing rules and regulations 
        implementing the purposes of this section.
            ``(2) Treaties.--The Secretary, in consultation with the 
        Secretary of State, may adjust the applicable amounts of the 
        refunds and equivalency fees under this section in a manner 
        that is consistent with any obligations of the United States 
        under an international agreement.

``SEC. 4696. DEFINITIONS AND OTHER RULES.

    ``(a) Definitions.--For purposes of this subchapter:
            ``(1) Carbon dioxide equivalent.--The term `carbon dioxide 
        equivalent' means, with respect to a greenhouse gas, the 
        quantity of such gas that has a global warming potential 
        equivalent to 1 metric ton of carbon dioxide, as determined 
        pursuant to table A-1 of subpart A of part 98 of title 40, Code 
        of Federal Regulations, as in effect on the date of the 
        enactment of the American Opportunity Carbon Fee Act of 2017.
            ``(2) Greenhouse gas.--The term `greenhouse gas' has the 
        meaning given such term under section 211(o)(1)(G) of the Clean 
        Air Act, as in effect on the date of the enactment of the 
        American Opportunity Carbon Fee Act of 2017.
            ``(3) Coal.--The term `coal' has the same meaning given 
        such term under section 48A(c)(4).
            ``(4) Petroleum product.--The term `petroleum product' has 
        the same meaning given such product under section 4612(a)(3).
            ``(5) Associated emissions.--The term `associated 
        emissions' means greenhouse gas emissions attributable to 
        venting, flaring, and leakage across the supply chain.
            ``(6) Supply chain.--The term `supply chain' means 
        extraction and processing of coal and natural gas, extraction 
        and refining of petroleum products, and the transmission, 
        transport, storage, distribution, import, export, and other 
        activities related to supplying coal, petroleum products, and 
        natural gas to a consumer, not otherwise covered elsewhere in 
        this subchapter as determined by the Administrator of the 
        Environmental Protection Agency.
            ``(7) Energy-intensive manufactured good.--
                    ``(A) In general.--The term `energy-intensive 
                manufactured good' means any manufactured good (other 
                than any petroleum product or fossil fuel) for which 
                not less than 5 percent of the cost of which is 
                attributable to energy costs, as determined by the 
                Secretary.
                    ``(B) List of energy-intensive manufactured 
                goods.--
                            ``(i) Initial list.--Not later than 180 
                        days after the date of the enactment of this 
                        Act, the Secretary shall publish a list of 
                        goods which qualify as energy-intensive 
                        manufactured goods.
                            ``(ii) Updates.--Not less frequently than 
                        annually, the Secretary shall update the list 
                        published under this subparagraph.
            ``(8) Ton.--
                    ``(A) In general.--The term `ton' means 1,000 
                kilograms. In the case of any greenhouse gas which is a 
                gas, the term `ton' means the amount of such gas in 
                cubic meters which is the equivalent of 1,000 kilograms 
                on a molecular weight basis.
                    ``(B) Fractional part of ton.--In the case of a 
                fraction of a ton, any fee imposed by this subchapter 
                on such fraction shall be the same fraction of the 
                amount of such fee imposed on a whole ton.
            ``(9) United states.--The term `United States' has the 
        meaning given such term by section 4612(a)(4).
    ``(b) Other Rules.--
            ``(1) Assessment and collection.--Payment of the fee 
        imposed by sections 4691, 4692, and 4693 shall be assessed and 
        collected in the same manner as taxes under this subtitle.
            ``(2) Regulations.--The Secretary shall prescribe such 
        regulations as may be necessary to carry out the provisions of 
        this subchapter.''.
    (b) Clerical Amendment.--The table of subchapters for chapter 38 of 
the Internal Revenue Code of 1986 is amended by adding at the end the 
following new item:

   ``subchapter e--carbon dioxide and other greenhouse gas emission 
                                fees''.

    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2017.

         TITLE II--RETURNING FEE REVENUE TO THE AMERICAN PEOPLE

SEC. 201. REDUCTION IN CORPORATE TAX RATE.

    (a) In General.--Section 11(b) of the Internal Revenue Code of 1986 
is amended--
            (1) by inserting ``and'' at the end of subparagraph (B);
            (2) by striking subparagraphs (C) and (D) and inserting the 
        following:
                    ``(C) 29 percent of so much of the taxable income 
                as exceeds $75,000.'';
            (3) by striking ``$11,750'' in the second sentence and 
        inserting ``$8,000''; and
            (4) by striking the last sentence.
    (b) Conforming Amendments.--
            (1) Paragraph (2) of section 11(b) of the Internal Revenue 
        Code of 1986 is amended by striking ``35 percent'' and 
        inserting ``29 percent''.
            (2) Paragraphs (1) and (2) of section 1445(e) of such Code 
        are each amended by striking ``35 percent'' and inserting ``29 
        percent''.
            (3) Subparagraph (A) of section 7518(g)(6) of such Code is 
        amended by striking ``34 percent'' and inserting ``29 
        percent''.
            (4) Paragraph (2) of section 53511(f) of title 46, United 
        States Code, is amended by striking ``34 percent'' and 
        inserting ``29 percent''.
    (c) Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to taxable years 
        beginning after December 31, 2017.
            (2) Withholding.--The amendments made by subsection (b)(2) 
        shall take effect on January 1, 2018.

SEC. 202. ESTABLISHMENT OF REFUNDABLE CREDIT FOR WORKERS.

    (a) In General.--Subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 36 the following new section:

``SEC. 36A. CARBON FEE OFFSET CREDIT.

    ``(a) In General.--In the case of an eligible individual, there 
shall be allowed as a credit against the tax imposed by this subtitle 
for the taxable year an amount equal to the lesser of--
            ``(1) 6.2 percent of the earned income of the taxpayer, or
            ``(2) $550 (twice such amount in the case of a joint 
        return).
    ``(b) Eligible Individual.--For purposes of this section, the term 
`eligible individual' means any individual other than--
            ``(1) any nonresident alien individual,
            ``(2) any individual with respect to whom a deduction under 
        section 151 is allowable to another taxpayer for a taxable year 
        beginning in the calendar year in which the individual's 
        taxable year begins, and
            ``(3) any individual who, for the month of December of the 
        taxable year, was entitled to or eligible for a benefit payment 
        described in paragraph (1) or (2) of section 203(b) of the 
        American Opportunity Carbon Fee Act of 2017.
    ``(c) Earned Income.--
            ``(1) In general.--For purposes of this section, the term 
        `earned income' has the meaning given such term by section 
        32(c)(2), except that such term shall not include net earnings 
        from self-employment which are not taken into account in 
        computing taxable income.
            ``(2) Certain combat zone compensation.--For purposes of 
        paragraph (1), any amount excluded from gross income by reason 
        of section 112 shall be treated as earned income which is taken 
        into account in computing taxable income for the taxable year.
    ``(d) Inflation Adjustment.--
            ``(1) In general.--In the case of a taxable year beginning 
        after 2018, the $550 amount in subsection (a)(2) shall be 
        increased by an amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the taxable year begins, determined by substituting 
                `calendar year 2017' for `calendar year 1992' in 
                subparagraph (B) thereof.
            ``(2) Rounding.--If any dollar amount, after being 
        increased under paragraph (1), is not a multiple of $10, such 
        dollar amount shall be rounded to the next lowest multiple of 
        $10.''.
    (b) Refunds Disregarded in the Administration of Federal Programs 
and Federally Assisted Programs.--Any credit or refund allowed or made 
to any individual by reason of section 36A of the Internal Revenue Code 
of 1986 (as added by this section) shall not be taken into account as 
income and shall not be taken into account as resources for purposes of 
determining the eligibility of such individual or any other individual 
for benefits or assistance, or the amount or extent of benefits or 
assistance, under any Federal program or under any State or local 
program financed in whole or in part with Federal funds.
    (c) Conforming Amendments.--
            (1) Section 6211(b)(4)(A) of the Internal Revenue Code of 
        1986 is amended by inserting ``36A,'' after ``36,''.
            (2) The table of sections for subpart C of part IV of 
        subchapter A of chapter 1 of such Code is amended by inserting 
        after the item relating to section 36 the following new item:

``Sec. 36A. Carbon fee offset credit.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2017.

SEC. 203. ESTABLISHMENT OF PAYMENTS TO SOCIAL SECURITY BENEFICIARIES 
              AND OTHER RETIRED AND DISABLED AMERICANS.

    (a) Authority To Make Payments.--The Secretary of the Treasury or 
the Secretary of the Treasury's delegate (referred to in this section 
as the ``Secretary'') shall, during the period between April 1 and May 
15 of calendar year 2018 and each year thereafter, disburse a payment 
to each eligible beneficiary in an amount equal to the amount in effect 
for taxable years beginning in the preceding calendar year under 
section 36A(a)(2) of the Internal Revenue Code of 1986.
    (b) Eligible Beneficiary.--For purposes of this section, the term 
``eligible beneficiary'' means an individual who, for the month of 
December of the preceding year, was--
            (1) entitled to any benefit payment described in 
        subparagraph (B) of section 2201(a)(1) of the American Recovery 
        and Reinvestment Act of 2009; or
            (2) eligible for a benefit payment described in 
        subparagraph (C) of such section.
    (c) Residency Requirement.--A payment may be made under this 
section only to an eligible beneficiary who resides in any State (as 
defined in section 204(f)), as determined based on the current address 
of record for such beneficiary under the applicable program for payment 
of benefits described in subsection (b).
    (d) No Double Payments.--An eligible beneficiary may not receive 
more than 1 payment per calendar year under this section, regardless of 
whether such beneficiary is entitled to or eligible for more than 1 
benefit payment described in paragraph (1) or (2) of subsection (b).
    (e) Identification of Recipients.--The Commissioner of Social 
Security, the Railroad Retirement Board, and the Secretary of Veterans 
Affairs shall certify the eligible beneficiaries entitled to receive 
payments under this section and provide the Secretary with any 
information necessary to disburse such payments.
    (f) Application of Additional Rules.--Rules similar to the rules of 
subsections (a)(4), (c), and (d) of section 2201 of the American 
Recovery and Reinvestment Act of 2009 shall apply for purposes of 
payments under this section.

SEC. 204. STATE-BASED COST MITIGATION GRANT PROGRAM.

    (a) In General.--The Secretary of the Treasury shall provide to 
each State which meets the requirements of subsection (d) a cost 
mitigation grant for each calendar year after 2017 in an amount 
determined under subsection (c).
    (b) Use of Funds.--A State receiving a cost mitigation grant under 
this section may use the grant only--
            (1) to assist low-income households in reducing energy 
        expenses and meeting cost increases attributable to the fees 
        imposed under subchapter E of chapter 38 of the Internal 
        Revenue Code of 1986 (as added by this Act);
            (2) to assist rural households in reducing energy expenses 
        and meeting such increases attributable to such fees; and
            (3) to provide job training and worker transition 
        assistance, with priority given to workers and former workers 
        in fossil-fuel related industries.
    (c) Amount of Grant.--
            (1) In general.--The amount of the cost mitigation grant 
        made to any State for any calendar year shall be equal to the 
        product of--
                    (A) the annual grant limitation determined under 
                paragraph (3) for such calendar year; and
                    (B) the State allocation percentage for the State 
                (determined under paragraph (2)).
            (2) State allocation percentage.--The ``State allocation 
        percentage'' for a State is the amount (expressed as a 
        percentage) equal to the quotient of--
                    (A) the population of such State (as reported in 
                the most recent decennial census); and
                    (B) the population of all States (as reported in 
                the most recent decennial census).
            (3) Annual grant limitation.--
                    (A) In general.--The annual grant limitation is 
                $10,000,000,000.
                    (B) Inflation adjustment.--In the case of any 
                calendar year after 2018, the $10,000,000,000 amount in 
                subparagraph (A) shall be increased by an amount equal 
                to--
                            (i) such dollar amount; multiplied by
                            (ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) of the 
                        Internal Revenue Code of 1986 for the calendar 
                        year, determined by substituting ``calendar 
                        year 2017'' for ``calendar year 1992'' in 
                        subparagraph (B) thereof.
            (4) Redistribution.--In any case in which one or more 
        States do not meet the requirements described in subsection (d) 
        for a calendar year, an amount equal to the State allocation 
        percentage for such State or States shall be distributed to 
        each State which did meet such conditions in an amount equal to 
        the product of--
                    (A) such amount; and
                    (B) the State allocation percentage of such State 
                (determined by not taking into account under paragraph 
                (2)(B) the population of any State which did not meet 
                the requirements of subsection (d) for such calendar 
                year).
    (d) Requirements for Receipt of Grant.--
            (1) In general.--A State is eligible to receive a cost 
        mitigation grant for any calendar year if--
                    (A) the chief executive officer of the State 
                certifies that the State will use such grant as needed 
                to deliver benefits to all eligible low-income 
                individuals through a household rebate program;
                    (B) the State has filed with the Secretary of the 
                Treasury a State plan covering the calendar year which 
                details the use of the funds received under the grant;
                    (C) the State agrees to comply with any audit 
                requirements under subsection (d); and
                    (D) the State has complied with the requirements of 
                this section for all preceding years or the State has 
                remedied all prior noncompliance to the satisfaction of 
                the Secretary of the Treasury.
            (2) Household rebate program.--For purposes of paragraph 
        (1)(A)--
                    (A) In general.--The term ``household rebate 
                program'' means a program for delivering to monthly 
                benefits in an aggregate annual amount equal to the 
                applicable amount to all eligible low-income 
                individuals through a State-administered electronic 
                benefit transfer system.
                    (B) Applicable amount.--The term ``applicable 
                amount'' means, with respect to any eligible low-income 
                individual for any calendar year, an amount equal to 
                the excess of--
                            (i) the amount in effect for taxable years 
                        ending with or within the preceding calendar 
                        year under section 36A(a)(2) of the Internal 
                        Revenue Code of 1986, over
                            (ii) any amount allowed or claimed as a 
                        credit by such individual under such section 
                        for the taxable year ending with or within the 
                        preceding calendar year.
                    (C) Eligible low-income individuals.--The term 
                ``eligible low-income individual'' means, with respect 
                to any calendar year, any individual who--
                            (i) has attained the age of 18 before the 
                        end of the calendar year;
                            (ii) lives in a household that has a gross 
                        income that does not exceed 150 percent of the 
                        poverty line as defined by section 673(2) of 
                        the Community Services Block Grant Act;
                            (iii) participates in a federally funded 
                        State administered assistance program or 
                        otherwise applies for such benefits under such 
                        a program; and
                            (iv) for the month of December of the 
                        preceding calendar year, was not entitled to or 
                        eligible for a benefit payment described in 
                        section 203(b).
                    (D) Coordination rules.--The Secretary of the 
                Treasury shall coordinate with the States and other 
                applicable Federal agencies to identify eligible low-
                income individuals.
    (e) Audits.--The Secretary of the Treasury shall audit the State 
use of grants under this section to ensure such uses comply with the 
requirements of this section and with the uses identified by the State 
under subsection (d)(1)(B). The Secretary may withhold a grant under 
this section if the Secretary determines that a State has not complied 
with such requirements.
    (f) State.--For purposes of this section, the term ``State'' 
includes the District of Columbia, the Commonwealth of Puerto Rico, 
Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, 
and the United States Virgin Islands.
    (g) Appropriations.--There are hereby appropriated such sums as 
necessary for making cost mitigation grants under this section.

                      TITLE III--OTHER PROVISIONS

SEC. 301. PUBLIC DISCLOSURE OF REVENUES AND EXPENDITURES.

    (a) Establishment of Website.--The Secretary of the Treasury, or 
the Secretary's designee, shall establish a website for purposes of 
making the disclosures described in subsection (b).
    (b) Disclosures.--The Secretary shall make publicly available, on 
an ongoing basis and as frequently as possible, the following 
information:
            (1) The amount and sources of revenue attributable to this 
        Act and the amendments made by this Act.
            (2) The amount of tax savings and benefits received as a 
        result of title II of this Act.

SEC. 302. SEVERABILITY.

    If any provision of this Act or amendment made by this Act, or the 
application of a provision or amendment to any person or circumstance, 
is held to be unconstitutional, the remainder of this Act and 
amendments made by this Act, and the application of the provisions and 
amendment to any person or circumstance, shall not be affected by the 
holding.
                                 <all>