Title: Climate Action Rebate Act of 2019
Policy area: Taxation

Summary:
Climate Action Rebate Act of 2019
This bill imposes a carbon fee on the use, sale, or transfer of certain fossil fuels and fluorinated gases that emit greenhouse gases into the atmosphere. The fee is imposed on producers and importers of such fuels and is deposited into a Climate Action Rebate Fund established by this bill.
The bill establishes an gradual emissions reduction schedule for such fuels between 2020 and 2050 (100% reduction).
The bill requires payment of an equalization fee by fossil fuels and carbon-intensive imported goods at the border and provides for refunds of comparable exports.
The bill rebates up to 70% of net revenues from the fund to low-income individuals as a monthly dividend. Remaining revenues must be used for investment in infrastructure, energy innovation, and assistance for workers and communities to transition to a cleaner energy economy.
All carbon fee revenue must be spent in accordance with Buy American requirements and the Davis-Bacon Act (requires payment of local prevailing wage on public works projects for laborers and mechanics),

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 2284 Introduced in Senate (IS)]

<DOC>






116th CONGRESS
  1st Session
                                S. 2284

 To create a Climate Action Rebate Fund in order to efficiently reduce 
  greenhouse gas emissions, provide a monthly rebate to the American 
 people, encourage innovation of clean energy technologies and create 
       new economic opportunities, ensure the resiliency of our 
 infrastructure, assist with the transition to a clean energy economy, 
  and leave a healthier, more stable, and more prosperous nation for 
                          future generations.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 25, 2019

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

_______________________________________________________________________

                                 A BILL


 
 To create a Climate Action Rebate Fund in order to efficiently reduce 
  greenhouse gas emissions, provide a monthly rebate to the American 
 people, encourage innovation of clean energy technologies and create 
       new economic opportunities, ensure the resiliency of our 
 infrastructure, assist with the transition to a clean energy economy, 
  and leave a healthier, more stable, and more prosperous nation for 
                          future generations.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Climate Action Rebate Act of 2019''.

SEC. 2. FINDINGS.

    The Congress finds that--
            (1) climate change is costing the United States billions of 
        dollars of economic losses and poses an existential threat to 
        our safety and security;
            (2) markets should reflect all costs of goods, including 
        external factors such as pollution; and
            (3) creation of a Climate Action Rebate Fund can make 
        markets more efficient, create jobs, stimulate innovation, 
        invest in infrastructure, put money back in the pockets of 
        Americans, and provide for the transition to a cleaner energy 
        future.

SEC. 3. CARBON FEE.

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

                       ``Subchapter E--Carbon Fee

``Sec. 4691. Definitions.
``Sec. 4692. Carbon fee.
``Sec. 4693. Emissions reduction schedule.
``Sec. 4694. Fee on fluorinated greenhouse gases.
``Sec. 4695. Carbon capture refunds.
``Sec. 4696. Carbon border fee adjustment.
``Sec. 4697. Administration of the carbon border fee adjustment.
``Sec. 4698. Allocation of carbon border fee adjustment revenues.

``SEC. 4691. DEFINITIONS.

    ``For purposes of this subchapter--
    ``(a) Administrator.--The term `Administrator' means the 
Administrator of the Environmental Protection Agency.
    ``(b) Carbon Dioxide Equivalent or CO<INF>2</INF>-e.--The term 
`carbon dioxide equivalent' or `CO<INF>2</INF>-e' means the number of 
metric tons of carbon dioxide emissions with the same global warming 
potential as one metric ton of another greenhouse gas.
    ``(c) Carbon-Intensive Product.--The term `carbon-intensive 
product' means--
            ``(1) iron, steel, steel mill products (including pipe and 
        tube), aluminum, cement, glass (including flat, container, and 
        specialty glass and fiberglass), pulp, paper, chemicals, or 
        industrial ceramics, and
            ``(2) any manufactured product which the Secretary, in 
        consultation with the Administrator, determines is energy-
        intensive and trade-exposed (with the exception of any covered 
        fuel).
    ``(d) Covered Entity.--The term `covered entity' means--
            ``(1) in the case of crude oil--
                    ``(A) any operator of a United States refinery (as 
                described in subsection (d)(1) of section 4611), and
                    ``(B) any person entering such product into the 
                United States for consumption, use, or warehousing (as 
                described in subsection (d)(2) of such section),
            ``(2) in the case of coal--
                    ``(A) any producer subject to the tax under section 
                4121, and
                    ``(B) any importer of coal into the United States,
            ``(3) in the case of natural gas--
                    ``(A) any entity which produces natural gas (as 
                defined in section 613A(e)(2)) from a well located in 
                the United States, and
                    ``(B) any importer of natural gas into the United 
                States,
            ``(4) in the case of fluorinated gases, any entity required 
        to report the emission of a fluorinated gas under part 98 of 
        title 40, Code of Federal Regulations,
            ``(5) in the case of solid biomass, any entity which 
        operates a facility that combusts such solid biomass in a 
        manner which emits a greenhouse gas into the atmosphere, and
            ``(6) any entity or class of entities which, as determined 
        by the Secretary, is transporting, selling, or otherwise using 
        a covered fuel in a manner which emits a greenhouse gas into 
        the atmosphere and which has not been covered by the carbon 
        fee, the fluorinated greenhouse gas fee, or the carbon border 
        fee adjustment.
    ``(e) Covered Fuel.--The term `covered fuel' means crude oil, 
natural gas, coal, solid biomass, or any other product derived from 
crude oil, natural gas, or coal which shall be used so as to emit 
greenhouse gases to the atmosphere.
    ``(f) Full Fuel Cycle Greenhouse Gas Emissions.--The term `full 
fuel cycle greenhouse gas emissions' means the greenhouse gas content 
of a covered fuel (excluding solid biomass) plus that covered fuel's 
upstream greenhouse gas emissions.
    ``(g) Greenhouse Gas.--The term `greenhouse gas' has the same 
meaning given such term under paragraph (3) of section 901 of the 
Energy Independence and Security Act of 2007 (42 U.S.C. 17321), and 
shall include any other gases as identified by rule of the 
Administrator.
    ``(h) Greenhouse Gas Content.--The term `greenhouse gas content' 
means the amount of greenhouse gases, expressed in metric tons of 
CO<INF>2</INF>-e, which would be emitted to the atmosphere by the use 
of a covered fuel.
    ``(i) 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.
    ``(j) United States.--The term `United States' shall be treated as 
including each possession of the United States (including the 
Commonwealth of Puerto Rico and the Commonwealth of the Northern 
Mariana Islands).

``SEC. 4692. CARBON FEE.

    ``(a) Carbon Fee.--There is hereby imposed a carbon fee on any 
covered entity's use, sale, or transfer of any covered fuel.
    ``(b) Amount of the Carbon Fee.--The carbon fee imposed by this 
section is an amount equal to--
            ``(1) the greenhouse gas content of the covered fuel, 
        multiplied by
            ``(2) the carbon fee rate.
    ``(c) Carbon Fee Rate.--For purposes of this section--
            ``(1) In general.--The carbon fee rate, with respect to any 
        use, sale, or transfer during a calendar year, shall be--
                    ``(A) in the case of calendar year 2020, $15, and
                    ``(B) except as provided in paragraph (2), in the 
                case of any calendar year thereafter, the carbon fee 
                rate in effect under this subsection for the preceding 
                calendar year, plus $15.
            ``(2) Exceptions.--
                    ``(A) Increased carbon fee rate after missed annual 
                emissions reduction target.--In the case of any year 
                immediately following a year for which the Secretary 
                determines under 4693(b) that the emissions of 
                greenhouse gases from covered fuels exceeded the 
                emissions reduction target for the previous year, 
                paragraph (1)(B) shall be applied by substituting `$30' 
                for `$15'.
                    ``(B) Cessation of carbon fee rate increase after 
                certain emission reductions achieved.--In the case of 
                any year immediately following a year for which the 
                Secretary determines under 4693(b) that emissions of 
                greenhouse gases from covered fuels are not more than 
                10 percent of the greenhouse gas emissions from covered 
                fuels during the year 2017, paragraph (1)(B) shall be 
                applied by substituting `$0' for `$15'.
    ``(d) Solid Biomass.--For purposes of subsection (b), in the case 
of a covered fuel which consists of solid biomass, the greenhouse gas 
content of such covered fuel shall be determined by the Administrator 
based on the lifecycle greenhouse gas emissions of such fuel, as 
defined in section 211(o)(1)(H) of the Clean Air Act (42 U.S.C. 
7545(o)(1)(H)).
    ``(e) Exemption and Refund.--The Secretary shall prescribe such 
rules as are necessary to ensure the carbon fee imposed by this section 
is not imposed with respect to any nonemitting use, or any sale or 
transfer for a nonemitting use, including rules providing for the 
refund of any carbon fee paid under this section with respect to any 
such use, sale, or transfer.
    ``(f) Administrative Authority.--The Secretary, in consultation 
with the Administrator, shall prescribe such regulations, and other 
guidance, to assess and collect the carbon fee imposed by this section, 
including--
            ``(1) requirements for the quarterly payment of such fees, 
        and
            ``(2) rules to ensure that no covered fuel has the carbon 
        fee or the carbon border fee adjustment imposed upon it more 
        than once.

``SEC. 4693. EMISSIONS REDUCTION SCHEDULE.

    ``(a) In General.--An emissions reduction schedule for greenhouse 
gas emissions from covered fuels is hereby established, as follows:
            ``(1) Reference year.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                greenhouse gas emissions from covered fuels during the 
                year 2017 shall be the reference amount of emissions 
                and shall be determined from the `Inventory of U.S. 
                Greenhouse Gas Emissions and Sinks: 1990-2017' 
                published by the Environmental Protection Agency in 
                April of 2019.
                    ``(B) Updates.--If the greenhouse gas emissions 
                from covered fuels during the year 2017 is revised by 
                the Administrator in a subsequent report, the amount of 
                such emissions contained in such report shall apply for 
                purposes of this section.
            ``(2) Emissions reduction targets.--
                    ``(A) 2020 through 2030.--The emissions reduction 
                target for each calendar year during the period of 
                calendar years 2020 through 2030 shall be determined as 
                follows:


----------------------------------------------------------------------------------------------------------------
                       ``Year                                         Emissions Reduction Target
----------------------------------------------------------------------------------------------------------------
2017                                                  Reference year
----------------------------------------------------------------------------------------------------------------
2020                                                  90 percent of 2017 emissions
----------------------------------------------------------------------------------------------------------------
2021                                                  81 percent of 2017 emissions
----------------------------------------------------------------------------------------------------------------
2022                                                  74 percent of 2017 emissions
----------------------------------------------------------------------------------------------------------------
2023                                                  68 percent of 2017 emissions
----------------------------------------------------------------------------------------------------------------
2024                                                  63 percent of 2017 emissions
----------------------------------------------------------------------------------------------------------------
2025                                                  59 percent of 2017 emissions
----------------------------------------------------------------------------------------------------------------
2026                                                  56 percent of 2017 emissions
----------------------------------------------------------------------------------------------------------------
2027                                                  52 percent of 2017 emissions
----------------------------------------------------------------------------------------------------------------
2028                                                  50 percent of 2017 emissions
----------------------------------------------------------------------------------------------------------------
2029                                                  47 percent of 2017 emissions
----------------------------------------------------------------------------------------------------------------
2030                                                  45 percent of 2017 emissions
----------------------------------------------------------------------------------------------------------------

                    ``(B) 2031 through 2050.--The emissions reduction 
                target for each calendar year during the period of 
                calendar years 2031 through 2050 shall be equal to the 
                emissions reduction target for the preceding year 
                reduced by an amount equal to 2.25 percent of 2017 
                emissions.
    ``(b) Administrative Determination.--Not later than 90 days after 
the beginning of each calendar year beginning after the date of the 
enactment of this section, the Secretary, in consultation with the 
Administrator, shall determine whether emissions of greenhouse gases 
from covered fuels exceeded the emissions reduction target for the 
preceding calendar year. The Secretary shall make such determination 
using the same greenhouse gas accounting method as was used to 
determine the greenhouse gas emissions in the `Inventory of U.S. 
Greenhouse Gas Emissions and Sinks: 1990-2017' published by the 
Environmental Protection Agency in April of 2019.

``SEC. 4694. FEE ON FLUORINATED GREENHOUSE GASES.

    ``(a) Fluorinated Gas Fee.--A fee is hereby imposed upon any 
fluorinated greenhouse gas which is required to be reported under part 
98 of title 40, Code of Federal Regulations.
    ``(b) Amount.--The fee to be paid by the covered entity required to 
so report shall be an amount equal to--
            ``(1) the total amount, in metric tons of CO<INF>2</INF>-e, 
        of emitted fluorinated greenhouse gases (or, in the case of a 
        supplier, emissions that would result determined under the 
        rules of such part), multiplied by
            ``(2) an amount equal to 20 percent of the carbon fee rate 
        in effect under section 4692(c)(1) for the calendar year of 
        such emission.
    ``(c) Administrative Authority.--The Secretary, in consultation 
with the Administrator, shall prescribe such regulations, and other 
guidance, to assess and collect the carbon fee imposed by this section, 
including--
            ``(1) requirements for the quarterly payment of such fees, 
        and
            ``(2) rules to ensure that no covered fuel has the carbon 
        fee or the carbon border fee adjustment imposed upon it more 
        than once.

``SEC. 4695. CARBON CAPTURE REFUNDS.

    ``(a) In General.--The Secretary, in consultation with the 
Administrator and the heads of other relevant Federal agencies, shall 
prescribe regulations for providing payments to any person which 
captures qualified carbon oxide (as defined in subsection (c) of 
section 45Q) which is--
            ``(1) disposed of by such person in secure geological 
        storage, as described in subsection (f)(2) of such section,
            ``(2) used by such person as a tertiary injectant in a 
        qualified enhanced oil or natural gas recovery project (as 
        defined in subsection (e)(2) of such section) and disposed of 
        by such person in secure geological storage, or
            ``(3) utilized by such person in a manner described in 
        subsection (f)(5) of such section.
    ``(b) Payments for Carbon Capture.--
            ``(1) In general.--In the case of any industrial facility 
        for which carbon capture equipment has been placed in service, 
        the Secretary shall make payments to the owner of such facility 
        in the same manner as if such payment was a refund of an 
        overpayment of the carbon fee imposed by section 4692.
            ``(2) Amount of payment.--The payment determined under this 
        subsection shall be an amount equal to--
                    ``(A) the metric tons of qualified carbon oxide 
                captured and disposed of, used, or utilized in a manner 
                consistent with subsection (a), multiplied by
                    ``(B) the carbon fee rate during the year in which 
                the carbon fee was imposed by section 4692 upon the 
                covered fuel to which such carbon oxide relates.
            ``(3) Coordination with credit for carbon oxide 
        sequestration.--At such time that the Secretary prescribes 
        regulations implementing this section, no payment under this 
        section shall be allowed to any person for any unit of carbon 
        oxide for which a credit has been allowed with respect to such 
        unit under section 45Q.
    ``(c) Exception.--In the case of any industrial facility which is 
owned by an entity that is determined to be in violation of any 
applicable air quality regulations, such facility shall not be eligible 
for any payment under this section during the period of such violation.

``SEC. 4696. CARBON BORDER FEE ADJUSTMENT.

    ``(a) In General.--The fees imposed by, and refunds allowed under, 
this section shall be referred to as `the carbon border fee 
adjustment'.
    ``(b) Imported Covered Fuels Fee.--In the case of any person that 
imports into the United States any covered fuel, there shall be imposed 
a fee equal to the excess (if any) of--
            ``(1) an amount equal to--
                    ``(A) the amount of full fuel cycle greenhouse gas 
                emissions of such fuel, multiplied by
                    ``(B) the carbon fee rate in effect for the year in 
                which such fuel is imported, over
            ``(2) the total foreign cost of carbon carried by such 
        fuel.
    ``(c) Imported Carbon-Intensive Products Fee.--In the case of any 
person that imports into the United States any carbon-intensive 
products, there shall be imposed a fee equal to the excess (if any) 
of--
            ``(1) an amount equal to--
                    ``(A) production greenhouse gas emissions of such 
                product, multiplied by
                    ``(B) the carbon fee rate in effect for the year in 
                which the production greenhouse gas emissions of such 
                product were emitted into the atmosphere, over
            ``(2) the total foreign cost of carbon carried by such 
        product.
    ``(d) Refund on Exports From United States.--
            ``(1) Carbon-intensive products.--Under regulations 
        prescribed by the Secretary, there shall be allowed a credit or 
        refund (without interest) to exporters of carbon-intensive 
        products manufactured or produced in the United States an 
        amount equal to the excess (if any) of--
                    ``(A) an amount equal to--
                            ``(i) the production greenhouse gas 
                        emissions of the exported carbon-intensive 
                        product, multiplied by
                            ``(ii) the carbon fee rate during the year 
                        in which the carbon fee or fluorinated 
                        greenhouse gas fee was paid upon the production 
                        greenhouse gas emissions of the exported 
                        carbon-intensive product, over
                    ``(B) any total cost of carbon to be levied upon 
                the carbon-intensive product by any jurisdiction to 
                which the carbon-intensive product is to be imported.
        Any such credit or refund shall be allowed in the same manner 
        as if it were an overpayment of the fee imposed by section 4692 
        or 4694. The Secretary shall establish fair, timely, impartial, 
        and as necessary confidential procedures by which any exporter 
        of any product from the United States may petition the 
        Secretary to include that exported product on the list of 
        carbon-intensive products.
            ``(2) Covered fuels.--Under regulations prescribed by the 
        Secretary, in the case of a covered fuel produced in the United 
        States with respect to which the fee under section 4692 was 
        paid, there shall be allowed as a credit or refund (without 
        interest) to any exporter of such covered fuels an amount equal 
        to the excess (if any) of--
                    ``(A) an amount equal to--
                            ``(i) the full fuel cycle greenhouse gas 
                        emissions of the covered fuel, multiplied by
                            ``(ii) the carbon fee rate at the time the 
                        carbon fee was paid upon the full fuel cycle 
                        greenhouse gas emissions of the exported 
                        covered fuel, over
                    ``(B) any total cost of carbon to be levied upon 
                the covered fuel by a jurisdiction to which the carbon-
                intensive product is to be imported.
        Any such credit or refund shall be allowed in the same manner 
        as if it were an overpayment of tax imposed by section 4692.
    ``(e) Definitions.--For purposes of this section and section 4697--
            ``(1) Foreign cost of carbon; foreign carbon costs.--The 
        term `foreign cost of carbon' or `foreign carbon cost' means 
        the cost of any laws of a foreign jurisdiction which impose a 
        system of cap-and-trade with respect to, or a tax or fee on, 
        greenhouse gas. Such cost shall be determined and expressed as 
        a price per ton of CO<INF>2</INF>-e.
            ``(2) Production greenhouse gas emissions.--The term 
        `production greenhouse gas emissions' means the quantity of 
        greenhouse gases, expressed in metric tons of CO<INF>2</INF>-e, 
        emitted to the atmosphere resulting from, nonexclusively, the 
        production, manufacture, assembly, transportation, or financing 
        of a product.
            ``(3) Total cost of carbon carried.--The term `total cost 
        of carbon carried' means an amount equal to--
                    ``(A) the production greenhouse gas emissions of a 
                carbon-intensive product or the full fuel cycle 
                greenhouse gas emissions of a covered fuel, multiplied 
                by
                    ``(B) the cost of carbon with respect to such 
                product or fuel, reduced by any amount refunded with 
                respect to such product or fuel by a foreign 
                jurisdiction.
        The total cost of carbon carried shall be expressed as price in 
        United States dollars.
            ``(4) Total foreign cost of carbon carried.--The term 
        `total foreign cost of carbon carried' means an amount equal 
        to--
                    ``(A) the production greenhouse gas emissions of a 
                carbon-intensive product, or the full fuel cycle 
                greenhouse gas emissions of a covered fuel, multiplied 
                by
                    ``(B) the foreign cost of carbon with respect to 
                such product or fuel, reduced by the amount refunded 
                with respect to such product or fuel by a foreign 
                jurisdiction.
        The total foreign cost of carbon carried shall be expressed as 
        price in United States dollars.
            ``(5) Upstream greenhouse gas emissions.--The term 
        `upstream greenhouse gas emissions' means the quantity of 
        greenhouse gases, expressed in metric tons of CO<INF>2</INF>-e, 
        emitted to the atmosphere resulting from, nonexclusively, the 
        extraction, processing, transportation, financing, or other 
        preparation of a covered fuel for use.

``SEC. 4697. ADMINISTRATION OF THE CARBON BORDER FEE ADJUSTMENT.

    ``(a) In General.--The Secretary, in consultation with the 
Administrator, shall prescribe regulations and guidance which implement 
the carbon border fee adjustment under section 4696.
    ``(b) Collaboration.--In determining the production greenhouse gas 
emissions of an imported carbon-intensive product, the upstream 
greenhouse gas emissions of an imported covered fuel, the full fuel 
cycle greenhouse gas emissions of an imported covered fuel, or the 
foreign cost of carbon, or otherwise administering the carbon border 
fee adjustment, it is the sense of Congress that the Secretary should 
collaborate with authorized officers of any jurisdiction, including 
sub-national governments, affected by the carbon border fee adjustment.
    ``(c) Methodology.--In determining the production greenhouse gas 
emissions of an imported carbon-intensive product, the upstream 
greenhouse gas emissions of an imported covered fuel, the full fuel 
cycle greenhouse gas emissions of an imported covered fuel, or the 
foreign cost of carbon, the Secretary shall use reliable methodologies, 
which--
            ``(1) as may be necessary or convenient--
                    ``(A) distinguish between different types of 
                covered fuels,
                    ``(B) distinguish between a covered fuel's 
                greenhouse gas content and that covered fuel's upstream 
                greenhouse gas emissions,
                    ``(C) distinguish between the different types of 
                greenhouse gas emissions which compose a covered fuel's 
                upstream greenhouse gas emissions or greenhouse gas 
                content, as well as the various processes which 
                produced those emissions, and
                    ``(D) distinguish between the different types of 
                greenhouse gas emissions which compose a carbon-
                intensive product's production greenhouse gas 
                emissions, as well as the various processes which 
                produced those emissions,
            ``(2) ensure that no covered fuel, covered fluorinated 
        greenhouse gas, or carbon-intensive product has the carbon fee, 
        the fluorinated greenhouse gas fee, or the border fee 
        adjustment imposed upon it more than once,
            ``(3) ensure that the implementation of the border carbon 
        adjustment aligns with the carbon fee and the fluorinated gas 
        fee,
            ``(4) in the case of incomplete data, rely upon the best 
        available methodologies for interpolating data gaps, and
            ``(5) are consistent with international treaties and 
        agreements.
    ``(d) Procedure.--The Secretary shall establish fair, timely, 
impartial, and as necessary confidential procedures by which the 
importer of any carbon-intensive product or any covered fuel may 
petition the Secretary to revise the Secretary's determination of the 
production greenhouse gas emissions, full fuel cycle greenhouse gas 
emissions, or upstream greenhouse gas emissions of that importer's 
imported covered fuel or imported carbon-intensive product, or the 
foreign cost of carbon carried by that importer's imported carbon-
intensive product.

``SEC. 4698. ALLOCATION OF CARBON BORDER FEE ADJUSTMENT REVENUES.

    ``The revenues collected under section 4696 may be used to 
supplement appropriations made available in fiscal years 2020 and 
thereafter--
            ``(1) to U.S. Customs and Border Protection, in such 
        amounts as are necessary to administer the carbon border fee 
        adjustment,
            ``(2) from the amounts remaining following payment of the 
        expenses described in paragraph (1), to the Department of 
        Treasury, in such amounts as are necessary to allow refunds 
        under section 4696(e) to exporters of carbon-intensive products 
        and exporters of covered fuels, and
            ``(3) from the amounts remaining following payment of the 
        expenses described in paragraphs (1) and (2)--
                    ``(A) to the Department of State and the United 
                States Agency for International Development for 
                programs to address climate mitigation and adaptation 
                in developing countries, including contributions to the 
                Green Climate Fund, and
                    ``(B) to the Export-Import Bank of the United 
                States to facilitate exportation of clean energy 
                technologies''.
    (b) Payments to Farmers and Landowners for Nature-Based Projects.--
            (1) In general.--The Secretary of Agriculture, in 
        consultation with the Administrator of the Environmental 
        Protection Agency, shall provide payments to farmers and 
        landowners within the United States to implement carbon 
        sequestration projects with measurable greenhouse gas reduction 
        benefits or other nature-based projects that reduce greenhouse 
        gas emissions, including projects for--
                    (A) ecologically-appropriate reforestation,
                    (B) restoration of wetlands,
                    (C) agricultural practices such as the usage of 
                cover crops, no till, and practices that can reduce 
                emissions from livestock, fertilizers, and rice 
                cultivation, and
                    (D) other appropriate practices as determined by 
                the Secretary of Agriculture.
            (2) Amount of payment.--Not later than 180 days after the 
        date of enactment of this Act, the Secretary of Agriculture, in 
        consultation with the Administrator of the Environmental 
        Protection Agency, shall issue regulations to determine the 
        amount of a payment under paragraph (1), taking into account 
        the use of certified third-party registries for verification of 
        emissions reductions and provisions for addressing the 
        potential impermanence of carbon sequestration in biomass and 
        soils.
    (c) Payments for Direct Air Capture of Carbon Dioxide.--
            (1) In general.--Subject to paragraph (3), the Secretary of 
        Energy, in consultation with the Administrator of the 
        Environmental Protection Agency and the heads of any other 
        relevant agencies, shall make payments to any direct air 
        capture facility (as defined in section 45Q(e)(1) of the 
        Internal Revenue Code of 1986) within the United States that 
        uses carbon capture equipment to capture carbon dioxide 
        directly from the ambient air and disposes of such carbon 
        dioxide in secure geological storage (as described in section 
        45Q(f)(2) of such Code).
            (2) Payment amount.--A payment under paragraph (1) shall be 
        in an amount equal to the product obtained by multiplying--
                    (A) the metric tons of carbon dioxide captured and 
                disposed of by the facility; and
                    (B) the carbon fee rate in effect during the 
                calendar year preceding the year in which the capture 
                of such carbon dioxide occurs.
            (3) Exception.--In the case of any direct air capture 
        facility which is owned by an entity that is determined to be 
        in violation of any applicable air quality regulations, such 
        facility shall not be eligible for any payment under this 
        section during the period of such violation.
            (4) Coordination with credit for carbon dioxide 
        sequestration.--The Secretary of Energy shall not make a 
        payment under this subsection with respect to any facility for 
        any unit of carbon dioxide for which a credit has been allowed 
        with respect to such unit under section 45Q of the Internal 
        Revenue Code of 1986.
    (d) Coordination With Carbon Oxide Sequestration Credit.--Section 
45Q(f) is amended by adding at the end the following new paragraph:
            ``(8) Coordination with carbon capture and sequestration 
        payments.--No credit shall be allowed under this section with 
        respect to any unit of carbon oxide which has received any 
        refund or payment with respect to such unit under section 3(c) 
        of the Climate Action Rebate Act of 2019 or section 4695.''.
    (e) International Negotiations.--The Congress finds the 
international mitigation of greenhouse gas emissions to be of national 
importance. Therefore, the Congress encourages the Secretary of State, 
or the Secretary's designee, to commence and complete negotiations with 
other nations with the goal of forming treaties, environmental 
agreements, accords, partnerships, or any other instrument that 
effectively reduces global greenhouse gas emissions to 10 percent of 
2017 levels by 2050 and which respect the principle of common but 
differentiated responsibilities and respective capabilities.

SEC. 4. ESTABLISHMENT OF THE CLIMATE ACTION REBATE FUND.

    (a) In General.--Subchapter A of chapter 98 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following:

``SEC. 9512. CLIMATE ACTION REBATE FUND.

    ``(a) Establishment and Funding.--There is hereby established in 
the Treasury of the United States a trust fund to be known as the 
`Climate Action Rebate Fund', consisting of such amounts as may be 
appropriated to such trust fund as provided for in this section.
    ``(b) Transfers to the Climate Action Rebate Fund.--There is hereby 
appropriated to the Climate Action Rebate Fund amounts equal to the 
fees received into the Treasury less any amounts refunded or paid under 
sections 4692(d) and 4695 for each month.
    ``(c) Expenditures.--Amounts in the trust fund shall be available 
for the following purposes:
            ``(1) Carbon fee administrative expenses.--So much of the 
        expenses as are necessary to administer sections 4692 through 
        4695 for any year as does not to exceed 0.60 percent of the 
        amounts appropriated to the Climate Action Rebate Fund for the 
        previous year.
            ``(2) Climate action rebate fund administrative expenses.--
        So much of the expenses necessary to administer the Climate 
        Action Rebate Fund for each year, as does not exceed--
                    ``(A) in the case of the first 5 fiscal years 
                ending after the date of the enactment of this section, 
                the administrative expenses for any year may not exceed 
                5 percent of amounts appropriated to the Climate Action 
                Rebate Fund during such year, and
                    ``(B) in the case of any fiscal year thereafter, 
                1.5 percent of the 5-year rolling average of the 
                amounts appropriated to the Climate Action Rebate Fund.
            ``(3) Climate action rebate payments.--
                    ``(A) In general.--For each fiscal year, the 
                amounts remaining in the Climate Action Rebate Fund 
                following payment of expenses under paragraphs (1) and 
                (2) shall be apportioned as follows:
                            ``(i) 70 percent of such amounts for the 
                        purposes described in subsection (d),
                            ``(ii) 20 percent of such amounts for the 
                        purposes described in subsection (e),
                            ``(iii) 5 percent of such amounts for the 
                        purposes described in subsection (f), and
                            ``(iv) 5 percent of such amounts for the 
                        purposes described in subsection (g).
    ``(d) Carbon Dividend.--
            ``(1) In general.--From the amounts in the Carbon Dividend 
        Trust Fund made available under subsection (c)(3)(A)(i) for any 
        year, the Secretary shall, for each month beginning more than 
        270 days after the date of the enactment of the Climate Action 
        Rebate Act of 2019, make carbon dividend payments to each 
        eligible individual.
            ``(2) Pro-rata share.--A carbon dividend payment is one 
        pro-rata share for each adult and half a pro-rata share for 
        each child under 19 years old of amounts available for the 
        month in the Climate Action Rebate Fund.
            ``(3) Eligible individual.--The term `eligible individual' 
        means, with respect to any month, any natural living person who 
        has a valid Social Security number or taxpayer identification 
        number and is a citizen or lawful resident of the United 
        States. The Secretary is authorized to verify an individual's 
        eligibility to receive a carbon dividend payment.
            ``(4) Phaseout.--
                    ``(A) In general.--In the case of any taxpayer 
                whose modified adjusted gross income for the most 
                recent taxable year for which a return has been filed 
                exceeds the threshold amount, the amount of the carbon 
                dividend otherwise payable to any household member of 
                the taxpayer under this subsection shall be reduced 
                (but not below zero) by a dollar amount equal to 5 
                percent of such dividend (as determined before 
                application of this paragraph) for each $1,000 (or 
                fraction thereof) by which such taxpayer's modified 
                adjusted gross income exceeds the threshold amount.
                    ``(B) Definitions.--For purposes of this 
                paragraph--
                            ``(i) Modified adjusted gross income.--The 
                        term `modified adjusted gross income' means 
                        adjusted gross income increased by any amount 
                        excluded from gross income under section 911, 
                        931, or 933.
                            ``(ii) Household member.--The term 
                        `household member of the taxpayer' means the 
                        taxpayer, the taxpayer's spouse, and any 
                        dependent of the taxpayer.
                            ``(iii) Threshold amount.--The term 
                        `threshold amount' means--
                                    ``(I) $130,000 in the case of a 
                                joint return,
                                    ``(II) $80,000 in the case of an 
                                individual who is not married, and
                                    ``(III) $65,000 in the case of a 
                                married individual filing a separate 
                                return.
                    ``(C) Regulations.--The Secretary shall prescribe 
                such regulations, and other guidance, as may be 
                necessary to carry out the purposes of this paragraph, 
                including establishment of rules for eligible 
                individuals who have not filed a recent tax return.
            ``(5) Fee treatment of payments.--Amounts paid under this 
        subsection shall be includible in gross income.
            ``(6) Federal programs and federal assisted programs.--The 
        carbon dividend amount received by any eligible individual 
        shall not be taken into account as income and shall not be 
        taken into account as resources for purposes of determining the 
        eligibility of such individual or any other individual for 
        benefits or assistance, or the amount or extent of benefits or 
        assistance, under any Federal program or under any State or 
        local program financed in whole or in part with Federal funds.
            ``(7) Advance payment.--The Secretary shall transfer to the 
        Climate Action Rebate Fund such amounts as are necessary for 
        the disbursement of an advanced carbon dividend to all eligible 
        individuals as follows:
                    ``(A) An advanced carbon dividend shall be the same 
                as the anticipated first carbon dividend required to be 
                distributed under paragraph (1) and shall be 
                distributed the month prior to the first collection of 
                the carbon fee.
                    ``(B) Total amounts disbursed as advanced carbon 
                dividends shall be deducted from the carbon dividends 
                on a pro-rata basis over the first 3 years after the 
                disbursement of the first carbon dividends.
    ``(e) Infrastructure.--From the amounts in the Carbon Dividend 
Trust Fund made available under subsection (c)(3)(A)(ii) for any year, 
the Secretary shall transfer such amounts as follows:
            ``(1) 50 percent to the Highway Trust Fund under section 
        9503, with--
                    ``(A) 80 percent of such amount allocated to the 
                Highway Account for the payment of obligations incurred 
                in carrying out Federal-aid highway and highway safety 
                construction programs authorized under title 23, United 
                States Code, and
                    ``(B) 20 percent of such amount allocated to the 
                Mass Transit Account for the payment of obligations 
                incurred in carrying out transit programs authorized 
                under--
                            ``(i) chapter 53 of title 49, United States 
                        Code,
                            ``(ii) section 20005(b) of the Federal 
                        Public Transportation Act of 2012 (49 U.S.C. 
                        5303 note; Public Law 112-141), and
                            ``(iii) section 3006(b) of the Federal 
                        Public Transportation Act of 2015 (49 U.S.C. 
                        5310 note; Public Law 114-94).
            ``(2) 2.5 percent to the Department of Transportation for 
        national infrastructure investments for innovative multimodal 
        projects (also known as the Better Utilizing Investments to 
        Leverage Development (BUILD) Transportation discretionary grant 
        program).
            ``(3) 2.5 percent to the Department of Transportation to 
        make grants to the National Railroad Passenger Corporation for 
        intercity passenger rail infrastructure, as authorized by 
        section 11101 of the Passenger Rail Reform and Investment Act 
        of 2015 (title XI of division A of Public Law 114-94) and 
        sections 22907 and 24911 of title 49, United States Code.
            ``(4) 5 percent to the Airport and Airway Trust Fund under 
        section 9502 for the payment of obligations incurred in 
        carrying out aviation programs authorized under subtitle VII of 
        title 49, United States Code.
            ``(5) 2.5 percent to the Department of Transportation to 
        support deployment of alternative fuel vehicles, including 
        electric vehicle charging stations and hydrogen fueling 
        infrastructure.
            ``(6) 5 percent to the Environmental Protection Agency for 
        drinking water infrastructure programs under the Safe Drinking 
        Water Act (42 U.S.C. 300f et seq.) and wastewater and clean 
        water infrastructure programs under the Federal Water Pollution 
        Control Act (33 U.S.C. 1251 et seq.).
            ``(7) 2.5 percent to the Secretary of Agriculture for rural 
        water or wastewater grants or direct or guaranteed loans under 
        the Consolidated Farm and Rural Development Act (7 U.S.C. 1921 
        et seq.).
            ``(8) 1.5 percent to the Federal Communications Commission 
        to expand broadband access in rural areas.
            ``(9) 5 percent to the Army Corps of Engineers for water 
        resources development projects.
            ``(10) 2.5 percent for the Community Development Block 
        Grant program under title I of the Housing and Community 
        Development Act of 1974 (42 U.S.C. 5401 et seq.) to assist 
        States, units of general local government, and Indian tribes, 
        as those terms are defined in section 101 of such Act (42 
        U.S.C. 5301), with planning and implementation of projects to 
        support lowering emissions, and climate impact adaptation, 
        including improving infrastructure resilience, increasing 
        transit and housing density, and local economic development.
            ``(11) 2.5 percent to the National Oceanic and Atmospheric 
        Administration for coastal resiliency programs and ocean 
        observing and monitoring programs.
            ``(12) 2.5 percent to the Department of the Interior for 
        maintenance and infrastructure upgrades on public land.
            ``(13) 1.5 percent to the Hazardous Substance Superfund 
        established under section 9507.
            ``(14) 1.5 percent to the Abandoned Mine Reclamation Fund 
        created by section 401 of the Surface Mining Control and 
        Reclamation Act of 1977 (30 U.S.C. 1231).
            ``(15) Notwithstanding subsection (b)(2) of section 303 of 
        Public Law 96-451 (16 U.S.C. 1606a), 1.5 percent to the 
        Reforestation Trust Fund established by subsection (a) of that 
        section.
            ``(16) 2.5 percent to the Department of Energy for energy 
        efficiency programs, including--
                    ``(A) the Weatherization Assistance Program for 
                Low-Income Persons established under part A of title IV 
                of the Energy Conservation and Production Act (42 
                U.S.C. 6861 et seq.),
                    ``(B) State energy programs,
                    ``(C) the Clean Cities program,
                    ``(D) support for efficiency upgrades, including 
                energy savings performance contracting, in Federal 
                buildings, and
                    ``(E) the creation and initial funding of an Energy 
                Efficiency State Revolving Fund, to be modeled after--
                            ``(i) State water pollution control 
                        revolving funds established under title VI of 
                        the Federal Water Pollution Control Act (33 
                        U.S.C. 1381 et seq.), and
                            ``(ii) State drinking water treatment 
                        revolving loan funds established under section 
                        1452 of the Safe Drinking Water Act (42 U.S.C. 
                        300j-12).
            ``(17) 2.5 percent to the Secretary of Health and Human 
        Services for a new program within the partnerships for State 
        and regional hospital preparedness program under section 319C-2 
        of the Public Health Service Act (42 U.S.C. 247d-3b) to fund 
        infrastructure and facility improvements that support the 
        climate resiliency and preparedness of hospitals and community 
        health centers, including priority support for critical access 
        hospitals (as defined in section 1861(mm)(1) of the Social 
        Security Act (42 U.S.C. 1395x(mm)(1)), safety net hospitals (as 
        defined by the Center for Medicare and Medicaid Innovation), 
        and community health centers in places experiencing heavy air 
        pollution.
            ``(18) 2.5 percent to the Secretary of Veterans Affairs to 
        support resiliency and preparedness for Department of Veterans 
        Affairs medical facilities.
            ``(19) 1.5 percent to the Secretary of Agriculture for--
                    ``(A) energy programs under title IX of the Farm 
                Security and Rural Investment Act of 2002 (7 U.S.C. 
                8101 et seq.), and
                    ``(B) watershed and flood prevention operations 
                under the Watershed Protection and Flood Prevention Act 
                (16 U.S.C. 1001 et seq.) and the Act of December 22, 
                1944 (commonly known as the `Flood Control Act of 
                1944') (58 Stat. 887, chapter 665; 33 U.S.C. 701-1 et 
                seq.).
            ``(20) 2.5 percent to the Secretary of Agriculture for the 
        program established under section 3(b) of the Climate Action 
        Rebate Act of 2019.
    ``(f) Innovation.--
            ``(1) In general.--From the amounts in the Carbon Dividend 
        Trust Fund made available under subsection (c)(3)(A)(iii) for 
        any year, the Secretary shall transfer such amounts to the 
        Secretary of Energy to carry out the purposes described in 
        paragraph (2).
            ``(2) Expenditures.--The Secretary of Energy shall use the 
        funds transferred under paragraph (1) to support high-impact 
        research, development, demonstration, technology transfer, and 
        commercialization of technologies that reduce or eliminate 
        greenhouse gas emissions, including--
                    ``(A) energy storage technologies, including grid 
                integration of storage,
                    ``(B) carbon capture, utilization, and 
                sequestration, including direct air capture,
                    ``(C) next-generation nuclear technologies,
                    ``(D) energy efficiency, including in buildings and 
                the industrial sector,
                    ``(E) electric grid modernization,
                    ``(F) sustainable transportation, including 
                hydrogen fuel cell and electric vehicles, and
                    ``(G) the direct air capture program established 
                under section 3(c) of the Climate Action Rebate Act of 
                2019.
            ``(3) Specific programs.--In carrying out paragraph (2), 
        the Secretary of Energy shall include support for offices under 
        the Department of Energy and programs that support 
        commercialization and innovative collaboration, including 
        Advanced Research Projects Agency-Energy, the Loan Programs 
        Office, energy innovation hubs, energy frontier research 
        centers, regionally centered innovation programs, and the 
        Manufacturing USA network.
            ``(4) Collaboration with other agencies.--The Secretary of 
        Energy shall collaborate with other appropriate agencies, 
        including by sharing the funds transferred under paragraph (1), 
        to support overlapping areas of innovation, including--
                    ``(A) biomass and bioenergy with the Department of 
                Agriculture,
                    ``(B) nature-based solutions for carbon 
                sequestration with the Departments of Agriculture, 
                Commerce, and the Interior,
                    ``(C) export of technologies that will help other 
                countries reduce or eliminate greenhouse gas emissions 
                with the Departments of Commerce and State, and
                    ``(D) other such collaborations as determined 
                necessary by the Secretary of Energy to achieve the 
                goals outlined in paragraph (2).
    ``(g) Transition Assistance.--From the amounts in the Carbon 
Dividend Trust Fund made available under subsection (c)(3)(A)(iv) for 
any year, the Secretary shall transfer such amounts as follows:
            ``(1) 40 percent to the Department of Labor for the 
        establishment and initial funding of a program, to be modeled 
        after the trade adjustment assistance for workers program under 
        chapter 2 of title II of the Trade Act of 1974 (19 U.S.C. 2271 
        et seq.), to assist workers in industries that may be displaced 
        as a result of the fees imposed under sections 4692 and 4694, 
        including assistance with respect to--
                    ``(A) wage insurance,
                    ``(B) relocation expenses,
                    ``(C) early retirement,
                    ``(D) pension and health benefits, including (if 
                applicable) the 1974 UMWA Pension Plan (as defined in 
                section 9701(a)(3)),
                    ``(E) worker retraining, and
                    ``(F) other assistance that the Secretary of Labor 
                determines appropriate.
            ``(2) 20 percent to the Department of Energy to make grants 
        to States, territories, and tribes in order to assist 
        communities facing significantly increased energy costs as a 
        result of the fees imposed under sections 4692 and 4694, in 
        particular rural and low-income communities.
            ``(3) 10 percent to the Department of Health and Human 
        Services for the low-income home energy assistance program 
        established under the Low-Income Home Energy Assistance Act of 
        1981 (42 U.S.C. 8621 et seq.).
            ``(4) 30 percent to the Economic Development Administration 
        for programs that support economic development and diversity in 
        communities and areas dependent on industries that may be 
        affected by the fees imposed under sections 4692 and 4694, 
        including--
                    ``(A) the Economic Adjustment Assistance Program, 
                and
                    ``(B) Partnerships for Opportunity and Workforce 
                and Economic Revitalization.
    ``(h) Funding Requirements.--
            ``(1) In general.--All uses of funding transferred under 
        subsection (e) through (g) shall be in accordance with 
        practices that protect American manufacturing, pay prevailing 
        wages and benefits, and further reduce emissions when possible.
            ``(2) Use of american goods.--
                    ``(A) In general.--None of the funds made available 
                by this section may be used for a project for the 
                construction, alteration, maintenance, or repair of a 
                public building or public work unless all of the iron, 
                steel, cement, and manufactured goods used in the 
                project are produced in the United States.
                    ``(B) Exception.--Subparagraph (A) shall not apply 
                in any case or category of cases in which the head of 
                the Federal department or agency involved finds that--
                            ``(i) applying subparagraph (A) would be 
                        inconsistent with the public interest,
                            ``(ii) iron, steel, cement, and the 
                        relevant manufactured goods are not produced in 
                        the United States in sufficient and reasonably 
                        available quantities and of a satisfactory 
                        quality, or
                            ``(iii) inclusion of iron, steel, cement, 
                        and manufactured goods produced in the United 
                        States will increase the cost of the overall 
                        project by more than 25 percent.
                    ``(C) Publication.--If the head of a Federal 
                department or agency determines that it is necessary to 
                waive the application of subparagraph (A) based on a 
                finding under subparagraph (B), the head of the 
                department or agency shall publish in the Federal 
                Register a detailed written justification as to why the 
                provision is being waived.
                    ``(D) International agreements.--This section shall 
                be applied in a manner consistent with United States 
                obligations under international agreements.
            ``(3) Wage rate requirements.--Notwithstanding any other 
        provision of law, all laborers and mechanics employed by 
        contractors and subcontractors on projects funded directly by 
        or assisted in whole or in part by the Climate Act Rebate Fund 
        shall be paid wages at rates not less than those prevailing on 
        projects of a similar character in the locality as determined 
        by the Secretary of Labor in accordance with subchapter IV of 
        chapter 31 of title 40, United States Code. With respect to the 
        labor standards specified in this paragraph, the Secretary of 
        Labor shall have the authority and functions set forth in 
        Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 
        U.S.C. App.) and section 3145 of title 40, United States Code.
            ``(4) Energy efficiency state revolving fund.--For fiscal 
        year 2020 and each fiscal year thereafter, the labor standards 
        specified in paragraph (3) shall apply to projects assisted in 
        whole or in part with recycled funds, including principal 
        repayments and interest earnings, made available by the Energy 
        Efficiency State Revolving Fund established pursuant to 
        subsection (e)(16)(E).
            ``(5) Emissions reductions.--Whenever possible, materials 
        used for projects funded by this section shall be chosen with 
        respect to minimizing their lifecycle emissions, as determined 
        by the Administrator.
            ``(6) Natural infrastructure.--Whenever possible, projects 
        funded by subsection (e) shall prioritize consideration of 
        natural features and nature-based features, as defined in 
        section 1184(a) of the Water Infrastructure Improvements for 
        the Nation Act (33 U.S.C. 2289a(a)).
    ``(i) Sunset.--
            ``(1) In general.--For any fiscal year beginning after the 
        date on which the Secretary determines that--
                    ``(A) pursuant to section 4693, the emissions of 
                greenhouse gases from covered fuels for the most recent 
                calendar year is equal to or less than 10 percent of 
                the greenhouse gas emissions from covered fuels for 
                calendar year 2017; and
                    ``(B) the monthly carbon dividend payment made to 
                an adult who is an eligible individual pursuant to 
                subsection (d) has been less than $20 for the preceding 
                3 calendar years,
        no amounts may be transferred from Climate Action Rebate Fund 
        for any purpose described in subsection (c)(3), and any amounts 
        remaining in the Climate Action Rebate Fund shall be 
        transferred to the general fund of the Treasury of the United 
        States.
            ``(2) Inflation adjustment.--In the case of any year 
        beginning after 2020, the dollar amount under paragraph (1)(B) 
        shall be increased by an amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the taxable year begins, determined by substituting 
                `calendar year 2017' for `calendar year 2016' in 
                subparagraph (A)(ii) thereof.
    ``(j) Administrative Authority.--The Secretary, in coordination 
with the heads of other relevant Federal agencies, shall promulgate 
rules, guidance, and regulations useful and necessary to implement the 
Climate Action Rebate Fund.''.
    (b) Revenues Dedicated to Trust Funds.--
            (1) Airport and airway trust fund.--Section 9502(b)(1) of 
        the Internal Revenue Code of 1986 is amended--
                    (A) by inserting ``and fees'' after ``the taxes'', 
                and
                    (B) by striking ``and'' at the end of subparagraph 
                (C) and by inserting after subparagraph (D) the 
                following new subparagraph:
                    ``(E) section 9512(e)(4) (relating to carbon fee), 
                and''.
            (2) Highway trust fund.--Section 9503(b)(1) of the Internal 
        Revenue Code of 1986 is amended--
                    (A) by inserting ``and fees'' after ``equivalent to 
                the taxes'', and
                    (B) by striking ``and'' at the end of subparagraph 
                (D), by striking the period at the end of subparagraph 
                (E) and inserting ``, and'', and by inserting after 
                subparagraph (E) the following new subparagraph:
                    ``(F) section 9512(e)(1) (relating to carbon 
                fee).''.
    (c) Clerical Amendment.--The table of sections for subchapter A of 
chapter 98 of such Code is amended by adding at the end the following 
new item:

``Sec. 9512. Climate Action Rebate Fund.''.

SEC. 5. DISCLOSURE OF RETURN INFORMATION.

    Section 6103(l) of the Internal Revenue Code of 1986 is amended by 
adding at the end the following new paragraphs:
            ``(23) Disclosure of return information relating to carbon 
        dividend payments.--
                    ``(A) Department of treasury.--Return information 
                with respect to any taxpayer shall, without written 
                request, be open to inspection by or disclosure to 
                officers and employees of the Department of the 
                Treasury whose official duties require such inspection 
                or disclosure for purposes of administering section 
                9512(d) (relating the carbon dividend payments from the 
                Climate Action Rebate Fund).
                    ``(B) Commissioner of social security.--The 
                Commissioner of Social Security shall, on written 
                request, disclose to officers and employees of the 
                Department of the Treasury return information which has 
                been disclosed to the Social Security Administration as 
                is necessary to administer section 9512(d).
                    ``(C) Restriction on disclosure.--Information 
                disclosed under this paragraph shall be disclosed only 
                for purposes of, and to the extent necessary in, 
                carrying out section 9512(d).''.

SEC. 6. EFFECTIVE DATE.

    The amendments made by this Act shall apply to any calendar year 
beginning after the date of enactment of this Act.

SEC. 7. PRINCIPLE OF INTERPRETATION.

    In the case of ambiguity, the texts of this statute and its 
amending texts shall be interpreted so as to allow for the most 
effective abatement of greenhouse gas emissions.

SEC. 8. NO PREEMPTION OF STATE LAW.

    Nothing in this Act or any regulations promulgated under this Act 
shall preempt or supersede, or be interpreted to preempt or supersede, 
any State law or regulation.
                                 <all>