Title: SWAP Act
Policy area: Taxation

Summary:
Stemming Warming and Augmenting Pay Act of 2019 or the SWAP Act.
This bill imposes a tax on combusted fossil fuel greenhouse gas emissions. The tax is equal to $30 per metric ton of carbon dioxide equivalent emissions beginning in 2021. The tax increases by 5% plus inflation each year and increases by $3 per ton every two years if the previous year's emission goals are not met.
The revenue from such tax is divided (1) 70% for the reduction of payroll taxes; (2) 10% for additional payments to Social Security beneficiaries, and (3) 20% to establish a carbon trust fund for block grants to offset higher energy costs for low-income households, climate adaptation, energy efficiency, carbon sequestration, and research and development programs.
The bill also amends the Clean Air Act to impose a 12-year moratorium on regulations that limit greenhouse gas emissions. This moratorium may be lifted if certain emission targets are not met.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4058 Introduced in House (IH)]

<DOC>






116th CONGRESS
  1st Session
                                H. R. 4058

     To amend the Internal Revenue Code of 1986 to impose a tax on 
greenhouse gas emissions, accordingly reduce tax rates on payroll, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 25, 2019

  Mr. Rooney of Florida (for himself and Mr. Lipinski) introduced the 
following bill; which was referred to the Committee on Ways and Means, 
and in addition to the Committees on Energy and Commerce, and Science, 
 Space, and Technology, 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 impose a tax on 
greenhouse gas emissions, accordingly reduce tax rates on payroll, 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 ``Stemming Warming 
and Augmenting Pay Act of 2019'' or the ``SWAP 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--CARBON REDUCED PAYROLL TAX

Sec. 201. Carbon reduced payroll tax.
  TITLE III--DISTRIBUTION OF REVENUES FROM TAXATION OF GREENHOUSE GAS 
                               EMISSIONS

Sec. 301. Establishment of the Carbon Trust Fund.
Sec. 302. Appropriations from the Carbon Trust Fund.
         TITLE IV--AMENDMENTS TO FEDERAL ENVIRONMENTAL STATUTES

Sec. 401. Amendments to the Clean Air Act.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) Climate change threatens global stability and our 
        national economy.
            (2) Carbon emissions are a significant contributor to these 
        threats and must be addressed.
            (3) The United States private sector can face these 
        challenges and be a global leader in technology, innovation, 
        and efficiency.
            (4) A price on carbon levels the economic playing field and 
        spurs adoption of less carbon-intensive practices and 
        technologies.
            (5) Recycling revenues back to employers and employees will 
        neutralize the potential impacts of a tax.

                   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 gases that would be released if the fossil 
        fuel were combusted.
            ``(2) Applicable amount of carbon dioxide equivalent 
        emissions.--For purposes of paragraph (1)--
                    ``(A) For calendar year 2021, the term `applicable 
                amount' means $30 per metric ton of carbon dioxide 
                equivalent emissions.
                    ``(B) For each calendar year after 2021, the term 
                `applicable amount' means the sum of--
                            ``(i) the applicable amount for the 
                        previous calendar,
                            ``(ii) the sum of--
                                    ``(I) 5 percentage points, plus
                                    ``(II) a percentage increase in the 
                                previous year's tax rate equal to the 
                                increase in the Consumer Price Index 
                                for the previous calendar year, plus
                            ``(iii) the increase, if any, required by 
                        paragraph (3).
                    ``(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) Adjustment based on emission levels.--
                    ``(A) In general.--If, for calendar year 2023 and 
                every second calendar year thereafter through calendar 
                year 2031, the cumulative amount of emissions with 
                respect to the calendar year reported under 
                subparagraph (B) exceeds the cumulative amount of 
                emissions specified for such calendar year in 
                subparagraph (C), then the increase required by this 
                paragraph for the calendar year beginning on the next 
                January 1 following the determination in subparagraph 
                (B) shall be $3 per metric ton.
                    ``(B) Annual report.--Not later than March 30, 
                2021, and annually thereafter, the Secretary and the 
                Administrator shall jointly determine and report the 
                emissions during the calendar year ending on the 
                preceding December 31 from sources subject to taxation 
                under this part. The report shall specify whether the 
                cumulative amount of annual emissions reported for the 
                period beginning in calendar year 2021 and ending at 
                the end of the preceding calendar year exceeds the 
                emission levels specified in subparagraph (C).
                    ``(C) Emission schedule.--The emission schedule 
                specified in this subparagraph is as follows:
                            ``(i) The total emissions through calendar 
                        year 2021 are 5,000 million metric tons of 
                        carbon dioxide equivalent.
                            ``(ii) The total emissions through calendar 
                        year 2022 are 9,800 million metric tons of 
                        carbon dioxide equivalent.
                            ``(iii) The total emissions through 
                        calendar year 2023 are 14,600 million metric 
                        tons of carbon dioxide equivalent.
                            ``(iv) The total emissions through calendar 
                        year 2024 are 19,200 million metric tons of 
                        carbon dioxide equivalent.
                            ``(v) The total emissions through calendar 
                        year 2025 are 23,800 million metric tons of 
                        carbon dioxide equivalent.
                            ``(vi) The total emissions through calendar 
                        year 2026 are 28,300 million metric tons of 
                        carbon dioxide equivalent.
                            ``(vii) The total emissions through 
                        calendar year 2027 are 32,700 million metric 
                        tons of carbon dioxide equivalent.
                            ``(viii) The total emissions through 
                        calendar year 2028 are 37,000 million metric 
                        tons of carbon dioxide equivalent.
                            ``(ix) The total emissions through calendar 
                        year 2029 are 41,300 million metric tons of 
                        carbon dioxide equivalent.
                            ``(x) The total emissions through calendar 
                        year 2030 are 45,500 million metric tons of 
                        carbon dioxide equivalent.
                            ``(xi) The total emissions through calendar 
                        year 2031 are 49,700 million metric tons of 
                        carbon dioxide equivalent.
    ``(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. No refund shall be recognized for any 
                amount of greenhouse gas which has been credited under 
                section 45Q.
                    ``(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).
            ``(3) Report to congress.--The Secretary shall, by January 
        1st of each calendar year, report the total amount of refunds 
        awarded in the previous fiscal year under this subsection and 
        shall include, as appropriate, the amounts refunded under 
        paragraphs (1) and (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, any facility 
        that emits from combusted biomass fuel more than 25,000 metric 
        tons of carbon dioxide equivalent greenhouse gases in a year.

``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 January 1, 2020. 
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), a credit 
        equal to 100 percent of the amount paid pursuant to 
        requirements of State law.
            ``(2) For the first year following the year used in 
        paragraph (1), a credit equal to 80 percent of the amount paid 
        pursuant to requirements of State law.
            ``(3) For the second year following the year used in 
        paragraph (1), a credit equal to 60 percent of the amount paid 
        pursuant to requirements of State law.
            ``(4) For the third year following the year used in 
        paragraph (1), a credit equal to 40 percent of the amount paid 
        pursuant to requirements of State law.
            ``(5) For the fourth year following the year used in 
        paragraph (1), a credit equal to 20 percent of the amount paid 
        pursuant to requirements of State law.
    ``(b) No Credit.--For all years following the year used in 
paragraph (5), no credit shall be allowed.

``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) Carbon 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, as of the date of 
        enactment of this Act.
            ``(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 gases 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 Stemming Warming and Augmenting Pay Act of 2019, 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 Stemming Warming and Augmenting Pay Act of 
        2019, 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 Stemming 
        Warming and Augmenting Pay Act of 2019 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 border tax adjustment 
                rate 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.--Not later than January 1, 2020, 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.
    ``(c) Limitation on Imposition of Tax.--A border tax adjustment 
pursuant to this subpart may not be imposed with respect to any 
calendar year that begins less than one year after regulations are 
published under subsection (a).''.
    (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--CARBON REDUCED PAYROLL TAX

SEC. 201. CARBON REDUCED PAYROLL TAX.

    (a) In General.--Notwithstanding any other provision of law--
            (1) with respect to any taxable year which begins after 
        December 31, 2020, the rate of tax under section 1401(a) of the 
        Internal Revenue Code of 1986 shall be 12.4 percent minus the 
        reduced carbon rate, and
            (2) with respect to remuneration received after December 
        31, 2020--
                    (A) the rate of tax under 3101(a) of such Code 
                shall be 6.2 percent minus one-half of the reduced 
                carbon rate (including for purposes of determining the 
                applicable percentage under sections 3201(a) and 
                3211(a)(1) of such Code), and
                    (B) the rate of tax under subsection (a) of section 
                3111 of such Code shall be 6.2 percent minus one-half 
                of the reduced carbon rate (including for purposes of 
                subsections (e) and (f) of such section and determining 
                the applicable percentage under section 3221(a) of such 
                Code).
    (b) Coordination With Deductions for Employment Taxes.--
            (1) Deduction in computing net earnings from self-
        employment.--For purposes of applying section 1402(a)(12) of 
        the Internal Revenue Code of 1986, the rate of tax imposed by 
        subsection 1401(a) of such Code shall be determined without 
        regard to the reduction in such rate under this section.
            (2) Individual deduction.--In the case of the taxes imposed 
        by section 1401 of such Code for any taxable year which begins 
        in the payroll tax carbon period, the deduction under section 
        164(f) with respect to such taxes shall be equal to the sum 
        of--
                    (A) one-half of the portion of such taxes 
                attributable to the tax imposed by section 1401(a) 
                (determined after the application of this section), 
                plus
                    (B) one-half of the portion of such taxes 
                attributable to the tax imposed by section 1401(b).
    (c) Reduced Carbon Rate.--For purposes of this section--
            (1) In general.--The term ``reduced carbon rate'' means the 
        number of percentage points determined by the Secretary to be--
                    (A) 1 percentage point in the case of any taxable 
                year which begins during calendar year 2021, and
                    (B) in the case of any taxable year beginning in a 
                calendar year beginning after calendar year 2021, the 
                number of percentage points determined by the Secretary 
                to be, for the calendar year the product of--
                            (i) 12.4, and
                            (ii) 52.5 percent of amounts of estimated 
                        taxes received in the Treasury under subtitle L 
                        of the Internal Revenue Code of 1986 (relating 
                        to greenhouse gas emissions), divided by 
                        estimated taxes that would have been received 
                        in the Treasury with respect to a calendar year 
                        under sections 1401(a), 3101(a), 3111(a), and 
                        the applicable percentage of such taxes under 
                        3201(a), 3211(a)(1), and 3221(a), were this 
                        section not in effect.
            (2) Estimates.--For purposes of paragraph (1), the 
        determination of amounts received in the Treasury shall be made 
        on the basis of estimates by the Secretary of the Treasury (or 
        the Secretary's delegate), and proper adjustments shall be made 
        in the amounts subsequently estimated to the extent prior 
        estimates were in excess of or less than actual receipts.
            (3) Publication of reduced carbon rate.--Not later than 
        October 31 of each calendar year, the Secretary shall publish 
        the reduced carbon rate determined under this subsection for 
        the succeeding calendar year.
    (d) Employer Notification.--The Secretary of the Treasury shall 
notify employers of the payroll tax holiday period in any manner the 
Secretary deems appropriate.
    (e) Transfers of Funds.--
            (1) Transfers to federal old-age and survivors insurance 
        trust fund.--There are hereby appropriated to the Federal Old-
        Age and Survivors Trust Fund and the Federal Disability 
        Insurance Trust Fund established under section 201 of the 
        Social Security Act (42 U.S.C. 401) amounts equal to the 
        reduction in revenues to the Treasury by reason of the 
        application of subsection (a). Amounts appropriated by the 
        preceding sentence shall be transferred from the general fund 
        at such times and in such manner as to replicate to the extent 
        possible the transfers which would have occurred to such Trust 
        Fund had such amendments not been enacted.
            (2) Transfers to social security equivalent benefit 
        account.--There are hereby appropriated to the Social Security 
        Equivalent Benefit Account established under section 15A(a) of 
        the Railroad Retirement Act of 1974 (45 U.S.C. 231n-1(a)) 
        amounts equal to the reduction in revenues to the Treasury by 
        reason of the application of subsection (a)(2). Amounts 
        appropriated by the preceding sentence shall be transferred 
        from the general fund at such times and in such manner as to 
        replicate to the extent possible the transfers which would have 
        occurred to such Account had such amendments not been enacted.
            (3) Coordination with other federal laws.--For purposes of 
        applying any provision of Federal law other than the provisions 
        of the Internal Revenue Code of 1986, the rate of tax in effect 
        under section 3101(a) of such Code shall be determined without 
        regard to the reduction in such rate under this section.
    (f) Special Rule.--Not later than October 1 of each fiscal year 
beginning after fiscal year 2021 (January 1, 2021 in the case of fiscal 
year 2021), from amounts in the general fund of the Treasury not 
otherwise appropriated, the Commissioner of Social Security shall pay 
an amount, equal to 7.5 percent of amounts of taxes received in the 
Treasury under subtitle L of the Internal Revenue Code of 1986 
(relating greenhouse gas emissions), to be distributed equally among 
each individual entitled to monthly insurance benefits under title II 
of the Social Security Act, or to an annuity under section 2 of the 
Railroad Retirement Act of 1974 for the first month of each year.

  TITLE III--DISTRIBUTION OF REVENUES FROM TAXATION OF GREENHOUSE GAS 
                               EMISSIONS

SEC. 301. ESTABLISHMENT OF THE CARBON TRUST FUND.

    (a) Creation of Trust Fund.--There is hereby created in the 
Treasury of the United States a trust fund to be known as the ``CARBON 
Trust Fund''.
    (b) Transfers to Trust Fund.--There are hereby appropriated to the 
CARBON Trust Fund amounts equivalent to 15 percent of the taxes 
received in the Treasury under subtitle L of the Internal Revenue Code 
of 1986 (as added by title I of this Act).

SEC. 302. APPROPRIATIONS FROM THE CARBON TRUST FUND.

    Amounts in the CARBON Trust Fund for a fiscal year shall be 
available, as provided by appropriation Acts, as follows:
            (1) Fifty percent of such amounts shall be available for 
        State block grants to be used to offset higher energy costs for 
        low-income households.
            (2) Fifty percent of such amounts shall be available for 
        climate adaptation, carbon sequestration, energy efficiency, 
        and advanced R&D programs.

         TITLE IV--AMENDMENTS TO FEDERAL ENVIRONMENTAL STATUTES

SEC. 401. 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 publish 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 publish 
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 
publishing or enforcing rules limiting the emission of greenhouse gases 
in subsections (a) and (b) and section 211(c)(5) of this Act shall 
expire on January 1, 2034.
    ``(g) Exceptions.--
            ``(1) 2024.--Notwithstanding subsections (a) and (b) and 
        section 211(c)(5) of this Act, if the Administrator determines 
        by March 30, 2026, pursuant to the report required by section 
        9901(b)(3)(B) 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 2021 through 
        2025 exceed the emission level specified in section 
        9901(b)(3)(C) of such Code for calendar year 2025, then 
        beginning on October 1, 2026, the prohibition in subsections 
        (a) and (b) and section 211(c)(5) of this Act on publishing 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, 2030, pursuant to the report required by section 
        9901(b)(3)(B) 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 2021 through 
        2029 exceed the emission level specified in section 
        9901(b)(3)(C) of such Code for calendar year 2029, then 
        beginning on October 1, 2030, the prohibition in subsections 
        (a) and (b) and section 211(c)(5) of this Act on publishing 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.''.
                                 <all>