Title: MARKET CHOICE Act
Policy area: Taxation

Summary:
Modernizing America with Rebuilding to Kickstart the Economy of the Twenty-first Century with a Historic Infrastructure-Centered Expansion Act or the MARKET CHOICE Act
This bill imposes a tax on the greenhouse gas emissions of fossil fuels, certain industrial processes, and certain product uses.
The bill appropriates and transfers specified revenue from the tax to a Rebuilding Infrastructure and Solutions for the Environment Trust Fund established by the bill. Specified amounts in the trust fund shall be available, as provided by appropriations Acts, for the federal Highway Trust Fund, grants to low-income households; and other specified energy, environmental, infrastructure, and research and development priorities.
The bill also
The moratorium on regulations expires in 2033 if specified emission targets are not reached.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6463 Introduced in House (IH)]

<DOC>






115th CONGRESS
  2d Session
                                H. R. 6463

 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

                             July 23, 2018

Mr. Curbelo of Florida (for himself and Mr. Fitzpatrick) 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 
      Resources, Education and the Workforce, Transportation and 
Infrastructure, Science, Space, and Technology, and Agriculture, for a 
 period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL


 
 To 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 Representatives 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 Economy of the Twenty-first 
Century with a Historic Infrastructure-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 greenhouse gas emissions.
  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.
                  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 coastal flooding mitigation and 
                            adaptation infrastructure projects.
    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. Membership of Commission.
Sec. 404. Funding for the activities of the Commission.
Sec. 405. Power of the Commission.
Sec. 406. Staff of the Commission.

SEC. 2. FINDINGS.

    The Congress finds that--
            (1) roads, bridges, airports, and urban transportation 
        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 twenty first century;
            (4) there has been a marked increase in extreme weather 
        events and the negative impacts of a changing climate are 
        expected to worsen in every region of the United States;
            (5) if left unaddressed, the consequences of a changing 
        climate have the potential to adversely impact 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, agriculture, water 
        supply, public health, and public safety; and
            (7) there is bipartisan support for pursuing efforts to 
        reduce greenhouse gas emissions through economically viable, 
        broadly supported private and public policies and solutions.

                   TITLE I--GREENHOUSE GAS EMISSIONS

SEC. 101. TREATMENT OF GREENHOUSE GAS EMISSIONS.

    (a) In General.--The Internal Revenue Code of 1986 is amended by 
adding at the end the following:

                 ``Subtitle L--Greenhouse Gas Emissions

            ``Part 1. Taxation of Greenhouse Gas Emissions.

  ``Part 2. Tax Adjustments for Imports and Exports of Greenhouse Gas 
                          Intensive Products.

             ``PART 1--TAXATION OF GREENHOUSE GAS EMISSIONS

``Sec. 9901. Imposition of tax on combusted fossil fuel greenhouse gas 
                            emissions.
``Sec. 9902. Imposition of tax on greenhouse gas emissions from certain 
                            industrial processes.
``Sec. 9903. Imposition of tax on greenhouse gas emissions from certain 
                            product 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.--
            ``(1) Greenhouse gases that would be released if the fossil 
        fuel were combusted.--The tax imposed by subsection (a) shall 
        be the applicable 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 paragraph (1), the term `applicable 
        amount' means--
                    ``(A) for calendar year 2020, $24 per metric ton of 
                carbon dioxide equivalent emissions, and
                    ``(B) for each calendar year after 2020, the tax 
                rate shall be the sum of--
                            ``(i) the previous calendar year's tax 
                        rate, plus
                            ``(ii) the sum of--
                                    ``(I) 2 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.
                    ``(C) Consumer price index for any calendar year.--
                For purposes of subparagraph (B), the Consumer Price 
                Index for the previous calendar 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 Consumer Price Index which is most 
                consistent with the Consumer Price Index for calendar 
                year 1986 shall be used.
            ``(3) Rate adjustment based on emission levels.--
                    ``(A) Report.--Not later than March 30, 2021, 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 subject to taxation under this part. The 
                report shall determine whether the cumulative amount of 
                annual emissions reported for the period beginning in 
                calendar year 2020 and through the end of the preceding 
                calendar year were less than the emissions levels 
                specified in the following schedule:
                            ``(i) The total emissions through calendar 
                        year 2020 are 5,177 million metric tons of 
                        carbon dioxide equivalent.
                            ``(ii) The total emissions through calendar 
                        year 2021 are 10,353 million metric tons of 
                        carbon dioxide equivalent.
                            ``(iii) The total emissions through 
                        calendar year 2022 are 15,472 million metric 
                        tons of carbon dioxide equivalent.
                            ``(iv) The total emissions through calendar 
                        year 2023 are 20,532 million metric tons of 
                        carbon dioxide equivalent.
                            ``(v) The total emissions through calendar 
                        year 2024 are 25,592 million metric tons of 
                        carbon dioxide equivalent.
                            ``(vi) The total emissions through calendar 
                        year 2025 are 30,594 million metric tons of 
                        carbon dioxide equivalent.
                            ``(vii) The total emissions through 
                        calendar year 2026 are 35,596 million metric 
                        tons of carbon dioxide equivalent.
                            ``(viii) The total emissions through 
                        calendar year 2027 are 40,540 million metric 
                        tons of carbon dioxide equivalent.
                            ``(ix) The total emissions through calendar 
                        year 2028 are 45,484 million metric tons of 
                        carbon dioxide equivalent.
                            ``(x) The total emissions through calendar 
                        year 2029 are 50,370 million metric tons of 
                        carbon dioxide equivalent.
                            ``(xi) The total emissions through calendar 
                        year 2030 are 55,255 million metric tons of 
                        carbon dioxide equivalent.
                    ``(B) Adjustments for report period.--
                            ``(i) In general.--Not later than March 30, 
                        2022, and every two years thereafter, the 
                        Secretary shall determine whether an adjustment 
                        is required in accordance with clause (ii).
                            ``(ii) Period through 2030.--If the 
                        emission level reported under subparagraph (A) 
                        for calendar year 2022, and every second 
                        calendar year thereafter through calendar year 
                        2030, 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 
                        beginning on the next January 1 following the 
                        determination in clause (i) shall, after the 
                        increase under paragraph (2) for such next 
                        calendar year, be increased by an additional $2 
                        per metric ton.
    ``(c) By Whom Paid.--The tax imposed by subsection (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 incorporates 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.--
                    ``(A) Refund for reduction or elimination of 
                emissions.--Any manufacturer of a product that 
                incorporates a fossil fuel that has been taxed under 
                this section who can demonstrate 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 lifetime 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 consultation with 
                the Administrator, shall establish by rule the criteria 
                and process by which product manufacturers can 
                demonstrate that the conditions in subparagraph (A) 
                have been satisfied.
                    ``(C) Publication of regulations.--The Secretary 
                shall publish the regulations required 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.
            ``(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 qualify 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 paragraph until such time as the 
                Secretary has published the regulations described in 
                section 45Q(d)(2).

``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 categories subject to this 
        section as follows:
                    ``(A) Iron and steel production and metallurgical 
                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.
                    ``(O) Lead production.
                    ``(P) Magnesium production and processing.
                    ``(Q) Nitric acid production.
                    ``(R) Adipic acid production.
                    ``(S) Semiconductor manufacture.
                    ``(T) Electrical transmission and distribution.
            ``(2) Revision of the list.--The Administrator shall review 
        the list of source categories 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 source 
        categories 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 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 determines 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 metric tons per year of 
                carbon dioxide equivalent in the years in which 
                emissions from the entire 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 category 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.
            ``(5) The Administrator may add a source category to the 
        list that has previously been removed pursuant to paragraph (3) 
        if the addition of the source category otherwise meets the 
        requirements per paragraph (4).
    ``(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 subsection (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 subject 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 purposes that are manufactured within or 
imported into, the United States.
    ``(b) List of Products.--
            ``(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) Ozone depleting substances, but not if the 
                United States has ratified the Kigali Amendment to the 
                Montreal Protocol and is subject to Article 2J, 
                paragraph 1 of the Amended Montreal Protocol.
                    ``(G) Biodiesel.
                    ``(H) Solid biomass fuels.
            ``(2) Revision of the list.--The Administrator 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 carbon dioxide 
                equivalent for each of three consecutive years, and
                    ``(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.
            ``(5) The Secretary may add a product to the list that has 
        previously been removed pursuant to paragraph (3) if the 
        addition of the product otherwise meets the requirements of 
        paragraph (4).
    ``(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 subsection (a) shall be 
paid--
            ``(1) for products manufactured in the United States, by 
        the owner or operator of the point of taxation, 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 Administrator shall establish by rule (and 
may, from time to time, revise) the method by which taxable emissions 
under this part shall be calculated.
    ``(b) Categories and Subcategories Considered.--For purposes of 
calculating emissions taxable under--
            ``(1) section 9901, the Administrator shall determine by 
        rule the amount of carbon dioxide equivalent 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 determine 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 determine by rule the 
        amount of carbon dioxide equivalent that would be emitted based 
        on the lifecycle greenhouse gas emissions of the product, and 
        the Administrator may determine by rule such subcategories of 
        manufactured products listed in subsection 9903(b) as the 
        Administrator deems appropriate.
    ``(c) Methods.--Where greenhouse gas emissions subject to taxation 
under any section of this part are combined 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 Administrator 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 expensive 
method.
    ``(e) Publication of Regulations.--The Administrator 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 published.

``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 payments 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 
        to 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.

``SEC. 9906. PENALTIES FOR NONPAYMENT.

    ``Any person who fails to comply with the requirements 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 requirements.

``SEC. 9907. DEFINITIONS.

    ``Unless otherwise provided, the definitions provided herein are 
applicable to all provisions of this subtitle.
            ``(1) Administrator.--The term `Administrator' means the 
        Administrator of the Environmental 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, including anthracite, 
        bituminous, semibituminous, subbituminous, lignite and peat.
            ``(4) Coal preparation and processing plant.--The term 
        `coal preparation and processing plant' means any facility 
        (excluding underground 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.
            ``(6) Facility.--The term `facility' means any physical 
        property, plant, building, structure, source, or stationary 
        equipment located on one or more contiguous or adjacent 
        properties in actual physical contact 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 
        greenhouse 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 the greenhouse gas's heat-trapping 
        potential or its effect on ocean acidification.
            ``(10) Lifecycle greenhouse gas emissions.--The term 
        `lifecycle greenhouse gas emissions' has the meaning given that 
        term in section 211 of the Clear Air Act (42 U.S.C. 
        7545(o)(1)(H)).
            ``(11) Natural gas.--The term `natural gas' means any fuel 
        consisting in whole or in part of natural gas, including 
        components of natural gas such as methane and ethane; liquid 
        petroleum gas; synthetic gas derived from coal, petroleum, or 
        natural gas liquids; or any mixture of natural gas and 
        synthetic gas.
            ``(12) Petroleum products.--The term `petroleum 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, 
        lubricants, 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 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 unfinished 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(d)(2).
            ``(18) Solid biomass.--The term `solid biomass' means 
        nonfossilized and biodegradable organic material originating 
        from plants, animals or microorganisms, including products, 
        byproducts, residues and waste from agriculture, forestry and 
        related industries as well as the nonfossilized and 
        biodegradable organic fractions of industrial and municipal 
        wastes, but does not include gases and liquids recovered from 
        the decomposition of nonfossilized and biodegradable organic 
        material.
            ``(19) Source category.--The term `source category' means 
        any category or subcategory regulated under Part 60 of title 
        40, Code of Federal Regulations, or Part 90 of title 40, Code 
        of Federal Regulations.

  ``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 significantly 
        reduce greenhouse gas emissions, and
            ``(2) to prevent carbon leakage.
    ``(b) Additional Purposes of Part.--The purposes of this part are 
additionally--
            ``(1) to provide a rebate to exporters in domestic 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 countries, and, in 
        particular, fast-growing developing countries, do not enjoy 
        competitive advantages because of the carbon tax liability of 
        domestic manufacturers, and therefore increase their emissions,
            ``(3) to encourage foreign countries to take substantial 
        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 determined by the Secretary) in 
        greenhouse gas emissions by entities located in other countries 
        caused by a cost of production increase in the United States 
        resulting 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 of tax that would be paid on 
        a covered good produced in the United States in the current 
        year.
            ``(4) Commissioner.--The term `Commissioner' 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 subheading 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 consumption.
            ``(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 `industrial sector' 
        means any sector that--
                    ``(A) is in the manufacturing sector (as defined in 
                NAICS codes 31, 32, and 33), or
                    ``(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 consumption.--The term 
        `manufactured item for consumption' 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 determined, with 
                the concurrence of the Commissioner, that the 
                application of the border tax adjustment program 
                pursuant to this part is technically and 
                administratively feasible and appropriate to achieve 
                the purposes of this part, taking into account the 
                greenhouse gas intensity, 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 increases 
                in the marketplace and other appropriate 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 entity 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 Expansion Act, the President shall notify each foreign 
country--
            ``(1) requesting the foreign country to take appropriate 
        measures to limit the greenhouse gas emissions of the foreign 
        country, and
            ``(2) indicating that a border tax adjustment may apply to 
        covered goods imported into and exported from the United 
        States.
    ``(b) Lists.--
            ``(1) In general.--Not later than 1 year 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 Expansion Act, the Secretary 
        shall promulgate 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 January 31 of each 
        calendar year after the calendar year in which the Modernizing 
        America with Rebuilding to Kickstart the Economy of the Twenty-
        first Century with a Historic Infrastructure-Centered 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 
                                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 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 clause (ii).
                            ``(ii) Greenhouse gas intensity.--As 
                        determined by the Secretary, an industrial 
                        sector meets the criteria of this clause if the 
                        United States industrial sector has a 
                        greenhouse gas intensity of at least 5 percent, 
                        calculated by dividing--
                                    ``(I) the number of metric tons of 
                                carbon dioxide equivalent greenhouse 
                                gas emissions (including direct 
                                emissions 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 
                                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 determined by 
                        the Secretary, an industrial sector 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 
                                imports and exports of the sector, by
                                    ``(II) the value of the shipments 
                                plus the value of imports of the 
                                sector, based on data described in 
                                subparagraph (C).
                    ``(B) Metal and phosphate production 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 phosphate with subsequent steps in 
                        the process of metal and phosphate 
                        manufacturing, regardless of the NAICS code 
                        under which the activity is classified, and
                            ``(ii) aggregate data for the manufacturing 
                        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 Secretary 
                                shall determine the value of shipments 
                                under this subsection from data from 
                                the United States Census Annual Survey 
                                of Manufacturers.
                                    ``(II) Average data available.--The 
                                Secretary shall use the average of data 
                                from the most recent 3 years for which 
                                the data are available.
                                    ``(III) Average data not 
                                available.--If data described in 
                                subclause (II) are unavailable, the 
                                Secretary shall make a determination 
                                based on--
                                            ``(aa) data from the most 
                                        detailed industrial 
                                        classification level of the 
                                        Manufacturing Energy 
                                        Consumption Survey of the 
                                        Energy Information 
                                        Administration, and
                                            ``(bb) data from the most 
                                        recent Economic Census of the 
                                        United States.
                                    ``(IV) Data not available for 
                                sector.--If data from the Manufacturing 
                                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 
                                (including agglomeration) of metal ores 
                                (including iron and copper ores, soda 
                                ash, or phosphate) are not available 
                                from the specified data sources, the 
                                Secretary--
                                            ``(aa) shall use the best 
                                        available Federal or State 
                                        government data, and
                                            ``(bb) may use, to the 
                                        extent necessary, 
                                        representative data submitted 
                                        by entities that perform the 
                                        beneficiation or other 
                                        processing (including 
                                        agglomeration), in making a 
                                        determination.
                            ``(ii) Imports and exports.--
                                    ``(I) In general.--The Secretary 
                                shall base the value of imports and 
                                exports under this subsection on United 
                                States International Trade Commission 
                                data.
                                    ``(II) Average data available.--The 
                                Secretary shall use the average of data 
                                from the three most recent years for 
                                which the data are available.
                                    ``(III) Average data not 
                                available.--If data from the United 
                                States International Trade Commission 
                                are unavailable for any sector at the 
                                6-digit classification level in the 
                                NAICS, the Secretary may use United 
                                States International Trade Commission 
                                data pertaining to a broader industrial 
                                category classified in the NAICS.
                            ``(iii) Percentages.--The Secretary shall 
                        round the greenhouse gas intensity and trade 
                        intensity percentages under subparagraph (A) to 
                        the nearest whole number.
                            ``(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 Secretary--
                                    ``(I) shall use the best available 
                                data from the three most recent years 
                                for which the data are available, and
                                    ``(II) may, to the extent necessary 
                                with respect to a sector, use economic 
                                and engineering models and the best 
                                available information on technology 
                                performance levels for the sector.
            ``(2) Administrative determination of additional eligible 
        industrial sectors.--
                    ``(A) Updated trade intensity data.--The Secretary 
                shall designate as liable for carbon tax payments on 
                imported products 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 designation 
                        under subparagraph (A), the owner or operator 
                        of an entity or a group 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 Secretary 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 determination 
                        under this subparagraph, the Secretary shall 
                        consider--
                                    ``(I) data submitted by the 
                                petitioner,
                                    ``(II) data solicited by the 
                                Secretary from other entities in the 
                                sector, and
                                    ``(III) data specified in paragraph 
                                (1)(C).
                            ``(iii) Basis of subsector determination.--
                                    ``(I) In general.--Except as 
                                provided in subclause (II), the 
                                Secretary 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 manufactured 
                                and not the industrial process by which 
                                the products are manufactured.
                                    ``(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 another 
                                entity or group of entities that 
                                manufacture the same product primarily 
                                from recycled material.
                            ``(iv) Use of most recent data.--In 
                        determining whether to designate a sector or 
                        subsector as an eligible industrial sector 
                        under this subparagraph, the Secretary shall 
                        use the most recent data available from the 
                        sources described in paragraph (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 described in 
                        this subparagraph not later than 180 days after 
                        the date the completed petition is received by 
                        the Secretary.
            ``(3) Cessation of qualifying activities.--If, as 
        determined by the Secretary, an industrial sector or a covered 
        good within the sector is no longer liable to be designated 
        under this section, the Commissioner shall cease to apply the 
        border tax adjustment 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 concurrence of the 
Commissioner, shall promulgate regulations--
            ``(1) establishing the products which are liable for, and 
        requiring payment of, the border tax adjustment rate,
            ``(2) establishing a general methodology for calculating 
        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 Commissioner 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 circumvention of 
        the carbon tax liability for covered 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) Clerical Amendment.--The table of subtitles for the Internal 
Revenue Code of 1986 is amended by adding 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 December 31, 2019.

  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.

    There is hereby created in the Treasury of the United States a 
trust fund to be known as the ``Rebuilding Infrastructure and Solutions 
for the Environment Trust Fund'' (hereafter in this Act referred to as 
the ``RISE Trust Fund''), consisting of amounts paid into the Treasury 
pursuant 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 2021 through 
        2030 to the Federal Highway Trust Fund.
            (2) 1.5 percent for each of the fiscal years 2021 through 
        2030 for the weatherization program developed under part A of 
        title IV of the Energy Conservation and Production Act (42 
        U.S.C. 6861 et seq.).
            (3) 3 percent for each of the fiscal years 2021 through 
        2030 for assistance for displaced energy workers under section 
        321.
            (4) 2.5 percent for each of the fiscal years 2021 through 
        2030 to the Airport and Airway Trust Fund under section 9502 of 
        the Internal Revenue Code of 1986.
            (5) 0.1 percent for each of the fiscal years 2021 through 
        2030 to the Leaking Underground Storage Trust Fund under 
        section 9508 of the Internal Revenue Code of 1986.
            (6) 2 percent for each of the fiscal years 2021 through 
        2030 to the Abandoned Mine Reclamation Fund under section 401 
        of the Surface Mining Control and Reclamation Act of 1977 (30 
        U.S.C. 1231).
            (7) 5 percent for each of the fiscal years 2021 through 
        2030 for frequent and chronic coastal flooding mitigation and 
        adaptation infrastructure projects under section 318 of the 
        Coastal Zone Management Act of 1972 (16 U.S.C. 1451 et seq.).
            (8) 0.5 percent for each of the fiscal years 2021 through 
        2030 for Advanced Research Projects Agency-Energy under section 
        5012 of the America COMPETES Act (42 U.S.C. 16538).
            (9) 0.7 percent for each of the fiscal years 2021 through 
        2030 for the Carbon Capture Research and Development Program of 
        the National Energy Technology Laboratory, Office of Fossil 
        Energy, Department of Energy.
            (10) 0.5 percent for each of the fiscal years 2021 through 
        2030 for assistance for Carbon Storage DOE Fossil Energy 
        Research, Development, and Demonstration Program Areas, Coal 
        Program Area (Carbon Storage).
            (11) 0.5 percent for each of the fiscal years 2021 through 
        2030 for assistance to the National Energy Technology 
        Laboratory of the Office of Fossil Energy for the research and 
        development of Direct Air Capture technologies.
            (12) 0.5 percent for each of the fiscal years 2021 through 
        2030 for research and development relating to energy storage by 
        battery through the Office of Electricity Delivery and Energy 
        Reliability, Department of Energy.
            (13) 10 percent for each of the fiscal years 2021 through 
        2030 for State grants under section 203.
            (14) 0.1 percent for each of the fiscal years 2021 through 
        2030 to the Reforestation Trust Fund (16 U.S.C. 1606a).
            (15) 0.1 percent for each of the fiscal years 2021 through 
        2030 for assistance through cooperative agreements to decrease 
        the environmental impact of energy-related activities pursuant 
        to section 931 of the Energy Policy Act of 2005 (42 U.S.C. 
        16231).
            (16) 2.5 percent for each of the fiscal years 2021 through 
        2030 for the environmental quality incentives program under 
        chapter 4 of subtitle D of title XII of the Food Security Act 
        of 1985 (16 U.S.C. 3839 aa 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).
            (17) 0.5 percent for each of fiscal years 2021 through 2030 
        for the regional conservation partnership program under section 
        1271 of the Food Security Act of 1985 (16 U.S.C. 3871) for 
        eligible activities 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 Secretary 
                determines will help achieve conservation benefits and 
                increase carbon sequestration or reduce greenhouse gas 
                emissions.
    (b) Direct Air Capture.--For purposes of subsection (a)(11), the 
term ``direct air capture'' refers to equipment that captures carbon 
dioxide directly from the ambient air. Such term shall not include any 
equipment which captures carbon dioxide which is deliberately released 
from naturally occurring subsurface springs or using natural 
photosynthesis.
    (c) Conforming Amendments.--
            (1) Leaking underground storage tank trust fund.--Section 
        9508(b) of the Internal Revenue Code of 1986 is amended by 
        striking ``and'' at the end of paragraph (3), by striking the 
        period at the end of paragraph (4) and inserting ``, and'', and 
        by inserting after paragraph (4) the following:
            ``(5) amounts transferred 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 limitation.--Section 
                303(b) of the Act of October 14, 1980 (16 U.S.C. 
                1606a(b)) is amended--
                            (i) in paragraph (2) by inserting ``under 
                        paragraph (1)'' after ``transfer'', and
                            (ii) by adding at the end the following:
            ``(4) Not later than 9 months after the enactment 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.''.

SEC. 203. STATE GRANTS.

    (a) In General.--From amounts made available under section 
202(a)(12), the Secretary shall make a monthly grant to each State 
(hereafter in this section referred to as ``State grant'') on the 
condition that the State makes distributions to eligible low-income 
households from the State grant.
    (b) Eligible Families.--A household shall be considered to be an 
eligible household 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 Indian 
                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--
                    (A) receives the subsidy described in section 
                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 described 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, in consultation with the Secretary of 
Energy and the Administrator of the Environmental Protection Agency, 
shall determine the amount of each State grant based on the percentage 
of total United States energy-related greenhouse gas emissions 
attributable to electricity, natural gas, gasoline, diesel, and fuel 
ethanol sold in each State during the preceding calendar year.
    (d) Rule Relating to Process.--Not later than 1 year after the 
enactment of this Act, the Secretary shall establish by rule a date in 
each year by which each State shall notify the Secretary that the State 
intends to distribute the State Grant for the following year. The 
Secretary shall transfer the State Grant to each State only upon the 
State demonstrating to the Secretary's satisfaction that the State 
intends to distribute the State Grant in accordance with this section.
    (e) State.--For the purposes of this section, the term ``State'' 
includes the District of Columbia and any territory of possession of 
the United States.

             Subtitle B--Certain Manufacturers Excise Taxes

SEC. 211. REPEAL OF FEDERAL MOTOR VEHICLE AND AVIATION FUEL TAXES.

    (a) In General.--Subpart A of part III of subchapter A of chapter 
32 of the Internal Revenue Code of 1986 is hereby repealed.
    (b) Effective Date.--The repeal made by subsection (a) shall apply 
to transactions after December 31, 2019.

                  TITLE III--AMENDMENTS TO OTHER LAWS

        Subtitle A--Amendments to Federal Environmental Statutes

SEC. 301. AMENDMENTS TO THE CLEAN AIR ACT.

    (a) In General.--Title III of the Clean Air Act (42 U.S.C. 7601) is 
amended by adding at the end the following:

``SEC. 330. MORATORIUM AGAINST CERTAIN REGULATIONS BASED ON GREENHOUSE 
              GAS EFFECTS.

    ``(a) Fuels.--Unless specifically authorized in section 202, 211, 
213, 231, or this section, after a fossil fuel has passed through a 
point of taxation as provided in section 9901(d) of the Internal 
Revenue Code of 1986, subject to subsection (g), the Administrator 
shall not finalize or enforce any rule limiting the emission of 
greenhouse gases from the combustion of that fuel under this Act (or 
impose any requirement on any State to limit such emission) on the 
basis of the emission's greenhouse gas effects.
    ``(b) Emissions.--Unless specifically authorized in section 202, 
211, 213, 231, or this section, if emission of any greenhouse gas is 
subject to taxation pursuant to any of sections 9902 through 9903 of 
the Internal Revenue Code of 1986, the Administrator shall not finalize 
or enforce any rule limiting such emission under this Act (or impose 
any requirement on any State to limit such emission) on the basis of 
the emission's greenhouse gas effects.
    ``(c) Authorized Regulation.--Notwithstanding subsections (a) and 
(b), nothing in this section limits the Administrator's authority 
pursuant to any other provision of this Act--
            ``(1) to limit the emission of any greenhouse gas because 
        of any adverse impact on health or welfare other than its 
        greenhouse gas effects;
            ``(2) in limiting emissions as described in paragraph (1), 
        to consider the collateral benefits of limiting the emissions 
        because of greenhouse gas effects;
            ``(3) to limit the emission of any other pollutant that is 
        not a greenhouse gas that the Administrator determines by rule 
        has heat-trapping properties; or
            ``(4) to take any action with respect to any greenhouse gas 
        other than limiting its emission, including--
                    ``(A) monitoring, reporting, and record-keeping 
                requirements;
                    ``(B) conducting or supporting investigations; and
                    ``(C) information collection.
    ``(d) Exception for Certain Greenhouse Gas Emissions.--
Notwithstanding subsections (a) and (b), nothing in this section limits 
the Administrator's authority to regulate greenhouse gas emissions 
from--
            ``(1) facilities that are subject to--
                    ``(A) subparts OOOO or OOOOa of part 60 of title 
                40, Code of Federal Regulations, as in effect on 
                January 1, 2018, or
                    ``(B) would be subject to either subpart OOOO or 
                subpart OOOOa if those subparts applied to such 
                facilities regardless of the date on which 
                construction, modification or reconstruction commenced, 
                and
            ``(2) POTW Treatment Plants (as defined in section 403.3(r) 
        of title 40, Code of Federal Regulations).
    ``(e) Definitions.--In this section, the terms `greenhouse gas' and 
`greenhouse gas effects' have the meanings given to those terms in 
section 9907 of the Internal Revenue Code of 1986.
    ``(f) Moratorium Expiration.--The moratoria on the Administrator 
finalizing or enforcing rules limiting the emission of greenhouse gases 
in sections 330(a), 330(b), and 211(c)(5) of this Act shall expire on 
January 1, 2033.
    ``(g) Exceptions.--
            ``(1) 2024.--Notwithstanding subsections (a) and (b) and 
        section 211(c)(5) of this Act, if the Administrator determines 
        by March 30, 2025, pursuant to the report required by section 
        9901(b)(3)(A) of the Internal Revenue Code of 1986, that total 
        greenhouse gas emissions subject to taxation under sections 
        9901 through 9903 of such Code during the period 2020 through 
        2024 exceed the emission level specified in section 
        9901(b)(3)(A) of such Code for calendar year 2024, then 
        beginning on October 1, 2025, the prohibition in subsections 
        (a) and (b) and section 211(c)(5) of this Act on finalizing or 
        enforcing rules limiting the emission of greenhouse gases (and 
        imposing any requirement on any State to limit such emission) 
        shall not apply.
            ``(2) 2028.--Notwithstanding subsections (a) and (b) and 
        section 211(c)(5) of this Act, if the Administrator determines 
        by March 30, 2029, pursuant to the report required by section 
        9901(b)(3)(A) of the Internal Revenue Code of 1986, that total 
        greenhouse gas emissions subject to taxation under sections 
        9901 through 9903 of such Code during the period 2020 through 
        2028 exceed the emission level specified in section 
        9901(b)(3)(A) of such Code for calendar year 2028, then 
        beginning on October 1, 2029, the prohibition in subsections 
        (a) and (b) and section 211(c)(5) of this Act on finalizing or 
        enforcing rules limiting the emission of greenhouse gases (and 
        imposing any requirement on any State to limit such emission) 
        shall not apply.''.
    (b) New Motor Vehicles and New Motor Vehicle Engines.--Section 
202(b) of the Clean Air Act (42 U.S.C. 7521(b)) is amended--
            (1) by redesignating the second paragraph (3) (as 
        redesignated by section 230(4)(C) of Public Law 101-549 (104 
        Stat. 2529)) as paragraph (4); and
            (2) by adding at the end the following:
            ``(5) Notwithstanding section 330(a), the Administrator 
        may--
                    ``(A) limit the emission of any greenhouse gas (as 
                defined in section 9907 of the Internal Revenue Code of 
                1986) on the basis of the emission's greenhouse gas 
                effects (as defined in section 9907 of the Internal 
                Revenue Code of 1986) from any class or classes of new 
                motor vehicles or new motor vehicle engines subject to 
                regulation under subsection (a)(1); and
                    ``(B) grant a waiver under section 209(b)(1) for 
                standards for the control of greenhouse gas 
                emissions.''.
    (c) Fuels.--Section 211(c) of the Clean Air Act (42 U.S.C. 7545(c)) 
is amended by adding at the end the following new paragraph:
    ``(5) Except as required in section 211(o), the Administrator shall 
not, pursuant to this subsection, impose on any manufacturer, 
processor, or distributor of fuel any requirement for the purpose of 
reducing the emission of any greenhouse gas (as defined in section 9907 
of the Internal Revenue Code of 1986) produced by combustion of the 
fuel on the basis of the emission's greenhouse gas effects (as defined 
in section 9907 of the Internal Revenue Code of 1986).''.
    (d) Nonroad Engines and Vehicles Emissions Standards.--Section 213 
of the Clean Air Act (42 U.S.C. 7547) is amended by adding at the end 
the following:
    ``(e) Greenhouse Gas Emissions.--Notwithstanding subsections (a) 
and (b) of section 330, the Administrator may limit the emission of any 
greenhouse gas (as defined in section 9907 of the Internal Revenue Code 
of 1986) on the basis of the emission's greenhouse gas effects (as 
defined in section 9907 of the Internal Revenue Code of 1986) from any 
nonroad engines and nonroad vehicles subject to regulation under this 
section.''.
    (e) Aircraft Emission Standards.--Section 231 of the Clean Air Act 
(42 U.S.C. 757) is amended by adding at the end the following new 
subsection:
    ``(d) Notwithstanding subsections (a) and (b) of section 330, the 
Administrator may limit the emission of any greenhouse gas (as defined 
in section 9907 of the Internal Revenue Code of 1986) on the basis of 
the emission's greenhouse gas effects (as defined in section 9907 of 
the Internal Revenue Code of 1986) from any class or classes of 
aircraft engines, so long as any such limitation is not more stringent 
than the standards adopted by the International Civil Aviation 
Organization.''.

SEC. 302. FREQUENT AND CHRONIC COASTAL FLOODING MITIGATION AND 
              ADAPTATION INFRASTRUCTURE PROJECTS.

    The Coastal Zone Management Act of 1972 (16 U.S.C. 1451 et seq.) is 
amended by redesignating sections 318 and 319 as section 320 and 321, 
and by inserting after section 317 the following:

``SEC. 318. FREQUENT AND CHRONIC COASTAL FLOODING MITIGATION AND 
              ADAPTATION INFRASTRUCTURE PROJECTS.

    ``(a) In General.--The Secretary may make grants to State and local 
governments and federally recognized Indian Tribes for frequent and 
chronic coastal flooding mitigation and adaptation infrastructure 
projects.
    ``(b) Authorized Uses.--Amounts provided as a grant under this 
section may be used for any of the following:
            ``(1) Adaptation of existing infrastructure, including 
        enhancements to both built and natural environments.
            ``(2) Maintenance and updating of existing frequent and 
        chronic coastal flood risk reduction infrastructure, such as 
        gravity drainage structures, road elevation, bulkheads, gates, 
        and floodwalls.
            ``(3) Increasing waterfront resilience to frequent and 
        chronic coastal flooding, including (as combined or separate 
        projects)--
                    ``(A) the creation of bulkheads, levees, and living 
                shorelines; and
                    ``(B) coastal habitat restoration work, including 
                dune enhancement, vegetative restoration, beach 
                renourishment, coral and oyster reef restoration, and 
                other actions to restore the function of the natural 
                coastal ecological function and processes to provide 
                flood risk reduction benefits.
            ``(4) Improvements to diversion, removal, and storage 
        infrastructure to reduce risks caused by frequent and chronic 
        coastal flooding.
            ``(5) Innovative methods to reduce risks caused by chronic 
        flooding along street infrastructure systems, including canal 
        streets, absorbent streets, floodable parks, bioswales, rain 
        gardens, permeable pavement, and underground cisterns.
            ``(6) Deployment of technologies designed to mitigate power 
        outages, continue delivery of vital electricity services, and 
        maintain the flow of power to facilities critical to public 
        health, safety and welfare, including distributed generation, 
        energy storage, and microgrids.
    ``(c) Limitation on Project Eligibility.--A project shall not be 
eligible for funding under this section if it will have any long-term 
negative impact on important ecological functions and habitat or 
existing natural coastal protection features and functions.
    ``(d) Priority.--In making grants under this section the Secretary 
shall give priority to the following:
            ``(1) Protecting areas designated as special flood hazard 
        areas for purposes of the national flood insurance program 
        under the National Flood Insurance Act of 1968 (42 U.S.C. 4001 
        et seq.) and the Flood Disaster Protection Act of 1973 (42 
        U.S.C. 4001 et seq.).
            ``(2) Projects in areas designated as such special flood 
        hazard areas that incorporate at least 2 feet of additional 
        freeboard, or 3 feet in the case of critical infrastructure, 
        above base flood elevation.
            ``(3) Protecting critical infrastructure, as that term is 
        defined in Homeland Security Presidential Directive 7 as issued 
        December 17, 2003.
            ``(4) Projects that yield flood risk reduction benefits and 
        additional environmental, social, and economic benefits.
    ``(e) Joint Application.--Two or more contiguous local governments 
or Tribes may jointly apply for, and receive, a grant under this 
section.
    ``(f) Cost Sharing.--
            ``(1) Limitation on federal share.--The Federal share of 
        the cost of any activity carried out with a grant under this 
        section shall not exceed 90 percent of the cost of such 
        activity.
            ``(2) Non-federal share.--The Secretary shall apply to the 
        non-Federal share of an activity carried out with a grant under 
        this section the amount of funds, and the fair market value of 
        property and services, provided by non-Federal sources and used 
        for the activity.
    ``(g) Reports.--Each recipient of a grant under this section shall 
report annually to the Secretary on progress made on the project 
carried out with the grant.''.

    Subtitle B--Assistance to Displaced Workers in the Energy Sector

SEC. 321. ASSISTANCE TO DISPLACED WORKERS IN THE ENERGY SECTOR.

    For a period of 10 years after the enactment of the Modernizing 
America with Rebuilding to Kickstart the Economy of the Twenty-first 
Century with a Historic Infrastructure-Centered Expansion Act, from 
amounts made available under section 202 of this Act, the Secretary of 
Labor shall implement a program to assist workers in the energy sector 
that may be displaced as a result of the enactment of this Act. This 
assistance may take the form of the following:
            (1) Worker retraining.
            (2) Relocation expenses for those who move to find new 
        employment.
            (3) Early retirement.
            (4) Health Benefits.
            (5) Other assistance that the Secretary determines 
        appropriate.

                 TITLE IV--NATIONAL CLIMATE COMMISSION

SEC. 401. ESTABLISHMENT OF COMMISSION.

    On the date of enactment of this Act, there is established a 
bipartisan commission to be known as the ``National Climate 
Commission'' (in this title referred to as ``the Commission'').

SEC. 402. DUTIES OF COMMISSION.

    The Commission shall--
            (1) meet not less than once every 3 years;
            (2) use as its goals for emissions reductions those 
        estimated rates of reduction that reflect the latest scientific 
        findings of what is needed to avoid serious human health and 
        environmental consequences of a changing climate;
            (3) undertake a comprehensive review of economically viable 
        public and private actions or policies to reduce greenhouse gas 
        emissions in the United States;
            (4) assess the impact and progress of existing policies and 
        programs with the aim of achieving emissions reduction goals; 
        and
            (5) beginning in 2026, and every 6 years thereafter, issue 
        a report to the President, Congress, and the States, which 
        shall include--
                    (A) an analysis of whether existing policies and 
                programs are on pace to achieving emissions reduction 
                goals;
                    (B) recommendations for reducing greenhouse gas 
                emissions; and
                    (C) if applicable, a minority report with 
                dissenting views.

SEC. 403. MEMBERSHIP OF COMMISSION.

    (a) In General.--Not later than 6 months after the date of 
enactment of this Act, the Commission shall be composed of 10 members, 
appointed as follows:
            (1) The President shall appoint 1 member, who shall serve 
        as cochairman of the Commission.
            (2) The leader of the Senate of the opposite party of the 
        President, in consultation with the leader of the House of 
        Representatives of the opposite party of the President, shall 
        appoint 1 member, who shall serve as cochairman of the 
        Commission.
            (3) The majority leader of the Senate shall appoint 2 
        members.
            (4) The minority leader of the Senate shall appoint 2 
        members.
            (5) The Speaker of the House of Representatives shall 
        appoint 2 members.
            (6) The minority leader of the House of Representatives 
        shall appoint 2 members.
    (b) Eligible Members.--To be considered for membership on the 
Commission, an individual shall be a representative from--
            (1) academic, scientific, or other nongovernmental 
        organizations with expertise in the economy, energy, climate, 
        or public health; or
            (2) industry organizations, including small businesses, 
        from relevant sectors such as--
                    (A) energy supply and transmission, including 
                fossil fuels and renewable energy;
                    (B) energy exploration and production, including 
                fossil fuels and renewable energy;
                    (C) solid waste and wastewater;
                    (D) transportation;
                    (E) chemical manufacturing and user industries;
                    (F) agriculture;
                    (G) construction and development; and
                    (H) forestry.
    (c) Ineligible Members.--No employee, owner, director, or other 
affiliated person of an entity which has contributed pursuant to 
section 404(a) may be appointed to the Commission.
    (d) Initial Meeting.--The Commission shall meet not later than 2 
years after the date of enactment of this Act.
    (e) Terms.--The term of office for members of the Commission shall 
be for 6 years, which may be renewed. A vacancy in the Commission shall 
not affect the powers of the Commission and shall be filled in the same 
manner in which the original appointment was made.
    (f) Quorum.--Six members of the Commission shall constitute a 
quorum.
    (g) Compensation.--
            (1) Prohibition of compensation of federal employees.--
        Members of the Commission who are full-time officers or 
        employees of the United States may not receive additional pay, 
        allowances, or benefits by reason of their service on the 
        Commission.
            (2) Compensation of non-federal employees.--Except as 
        provided in paragraph (1), each member of the Commission may be 
        compensated at a rate not to exceed the daily equivalent of the 
        annual rate of basic pay in effect for a position at level IV 
        of the Executive Schedule under section 5315 of title 5, United 
        States Code, for each day during which that member is engaged 
        in the actual performance of the duties of the Commission.
            (3) Travel expenses.--Each member shall receive travel 
        expenses, including per diem in lieu of subsistence, in 
        accordance with applicable provisions under subchapter I of 
        chapter 57 of title 5, United States Code.

SEC. 404. FUNDING FOR THE ACTIVITIES OF THE COMMISSION.

    (a) Private Sector Donations.--The Secretary of the Treasury may 
collect and disseminate to the Commission private sector funds donated 
for the purposes of this title.
    (b) Limitation.--Except for funds donated under subsection (a), 
additional funds may not be authorized to be appropriated to pay for 
the activities of the Commission.
    (c) Transparency.--The amounts and sources of all funds donated 
under subsection (a) and all spending by the Commission shall be made 
publicly available on an internet website.

SEC. 405. POWER OF THE COMMISSION.

    (a) Obtaining Official Data.--
            (1) In general.--The Commission is authorized to secure 
        directly from any executive department, bureau, agency, board, 
        commission, office, independent establishment, or 
        instrumentality of the Government, unrestricted information, 
        suggestions, estimates, and statistics for the purposes of this 
        title. Each department, bureau, agency, board, commission, 
        office, independent establishment, or instrumentality shall, to 
        the extent authorized by law, furnish such unrestricted 
        information, suggestions, estimates, and statistics directly to 
        the Commission, upon request made by the chairman or any member 
        designated by a majority of the Commission.
            (2) Receipt, handling, storage, and dissemination.--
        Unrestricted information shall only be received, handled, 
        stored, and disseminated by members of the Commission and its 
        staff consistent with all applicable statutes, regulations, and 
        Executive orders.
    (b) Assistance From Federal Agencies.--
            (1) General services administration.--The Administrator of 
        General Services shall provide to the Commission on a 
        reimbursable basis administrative support and other services 
        for the performance of the functions of the Commission.
            (2) Other departments and agencies.--In addition to the 
        assistance prescribed in paragraph (1), departments and 
        agencies of the United States may provide to the Commission 
        such services, funds, facilities, staff, and other support 
        services as they may determine advisable and as may be 
        authorized by law.
    (c) Postal Services.--The Commission may use the United States 
mails in the same manner and under the same conditions as departments 
and agencies of the United States.

SEC. 406. STAFF OF THE COMMISSION.

    (a) Detailees.--Any Federal Government employee may be detailed to 
the Commission without reimbursement from the Commission, and such 
detailee shall retain the rights, status, and privileges of his or her 
regular employment without interruption.
    (b) Consultant Services.--The Commission is authorized to procure 
the services of experts and consultants in accordance with section 3109 
of title 5, United States Code, but at rates for individuals not to 
exceed the daily equivalent of the annual rate of basic pay in effect 
for a position at level IV of the Executive Schedule under section 5315 
of title 5, United States Code.
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