Title: Raise Wages, Cut Carbon Act of 2019
Policy area: Taxation

Summary:
Raise Wages, Cut Carbon Act of 2019
This bill imposes excise taxes on fossil fuels and fluorinated greenhouse gases and uses revenues from such taxes to reduce social security taxes.
The bill annually increases funding beginning in FY2020 for the low-income home energy assistance program and the weatherization assistance program for low-income persons. It also directs the Social Security Administration to distribute to Social Security retirement beneficiaries 10% of environmental tax revenues beginning in FY2020.
The bill imposes taxes on (1) the manufacturer, producer, or importer of coal (including lignite and peat), petroleum and petroleum products, and natural gas ($40 per ton in 2020 with a 2.5% increase each year emission reduction targets are not met); (2) any imported taxable product sold or used by its importer; and (3) fluorinated greenhouse gases.
The bill requires a supermajority of either the House of Representatives or the Senate to change the revenue neutrality established by this bill.
The bill also amends the Clean Air Act to suspend certain regulations that limit greenhouse gas emissions. The suspensions expire if  emissions targets are not reached after a specified time period.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3966 Introduced in House (IH)]

<DOC>






116th CONGRESS
  1st Session
                                H. R. 3966

 To amend the Internal Revenue Code of 1986 to reduce social security 
 payroll taxes and to reduce the reliance of the United States economy 
        on carbon-based energy sources, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 25, 2019

  Mr. Lipinski (for himself and Mr. Rooney of Florida) introduced the 
following bill; which was referred to the Committee on Ways and Means, 
and in addition to the Committees on Energy and Commerce, Education and 
  Labor, and Rules, 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 reduce social security 
 payroll taxes and to reduce the reliance of the United States economy 
        on carbon-based energy sources, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Raise Wages, Cut Carbon Act of 
2019''.

SEC. 2. INCREASE IN THE LOW-INCOME HOUSING ENERGY ASSISTANCE PROGRAM 
              AND THE WEATHERIZATION ASSISTANCE PROGRAM.

    (a) LIHEAP.--On October 1, 2020, and each October 1 thereafter, 
there shall be made available, without further appropriation or fiscal 
year limitation, to carry out the Low-Income Home Energy Assistance Act 
of 1981 (42 U.S.C. 8621 et seq.) an amount equal to 5 percent of the 
net revenues received in the Treasury during the previous fiscal year 
from the taxes imposed under parts II, III, and IV of subchapter E of 
chapter 38 of the Internal Revenue Code of 1986.
    (b) Weatherization Assistance Program.--On October 1, 2020, and 
each October 1 thereafter, there shall be made available, without 
further appropriation or fiscal year limitation, to carry out the 
weatherization assistance program established under part A of title IV 
of the Energy Conservation and Production Act (42 U.S.C. 6861 et seq.) 
an amount equal to 1 percent of the net revenues received in the 
Treasury during the previous fiscal year from the taxes imposed under 
parts II, III, and IV of subchapter E of chapter 38 of the Internal 
Revenue Code of 1986.
    (c) Addition to Other Amounts.--Amounts made available pursuant to 
this section shall be in addition to other amounts made available to 
carry out the Low-Income Home Energy Assistance Act of 1981 and the 
weatherization assistance program established under part A of title IV 
of the Energy Conservation and Production Act for the fiscal year 
involved.

SEC. 3. DISTRIBUTION OF CERTAIN ESTIMATED REVENUES TO SOCIAL SECURITY 
              BENEFICIARIES.

    Not later than October 1 of each fiscal year beginning with fiscal 
year 2020, the Commissioner of Social Security shall pay an amount out 
of the general fund of the Treasury, equal to 10 percent of the net 
revenues received in the Treasury during the previous fiscal year from 
the taxes imposed under parts II, III, and IV of subchapter E of 
chapter 38 of the Internal Revenue Code of 1986, to be distributed 
equally among each individual entitled to monthly insurance benefits 
under title II of the Social Security Act (42 U.S.C. 401 et seq.) or to 
an annuity under section 2 of the Railroad Retirement Act of 1974 for 
the 1st month in such fiscal year.

SEC. 4. REDUCTION OF CERTAIN SOCIAL SECURITY TAXES; TAX ON COMBUSTIBLE 
              FOSSIL FUELS.

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

  ``Subchapter E--Reduction of Certain Social Security Taxes; Tax on 
                        Combustible Fossil Fuels

          ``Part I--Reduction of Certain Social Security Taxes

               ``Part II--Tax on Combustible Fossil Fuels

        ``Part III--Tax on Certain Additional Imported Products

             ``Part IV--Tax on Fluorinated Greenhouse Gases

     ``Part V--Supermajority Required To Change Revenue Neutrality

          ``PART I--REDUCTION OF CERTAIN SOCIAL SECURITY TAXES

``Sec. 4691. Social Security taxes and benefits.

``SEC. 4691. SOCIAL SECURITY TAXES AND BENEFITS.

    ``(a) Amounts Appropriated to Social Security Trust Funds.--
            ``(1) In general.--There are hereby appropriated to the 
        social security trust funds an amount equal to the excess (if 
        any) of--
                    ``(A) net revenues received in the Treasury from 
                the taxes imposed by parts II, III, and IV, over
                    ``(B) the net expenditures from the Treasury under 
                sections 2 and 3 of the Raise Wages, Cut Carbon Act of 
                2019.
            ``(2) Allocation among funds.--Amounts appropriated under 
        paragraph (1) shall be allocated among such funds as determined 
        appropriate by the Managing Trustee of the Board of Trustees of 
        the Trust Funds (within the meaning of title II of the Social 
        Security Act), in cooperation with the Railroad Retirement 
        Board.
    ``(b) Reduction in Certain Social Security Taxes.--
            ``(1) In general.--The rate of each specified social 
        security tax for each calendar year (determined without regard 
        to this section) shall be reduced by the number of percentage 
        points equal to--
                    ``(A) such rate, multiplied by
                    ``(B) the reduction percentage determined by the 
                Secretary for such calendar year.
            ``(2) Reduction percentage.--The reduction percentage 
        determined by the Secretary under paragraph (1) for any 
        calendar year shall be the percentage which the Secretary 
        estimates will result in aggregate appropriations into each 
        trust fund equal to the amount which would (without regard to 
        this section) be appropriated to each trust fund for such 
        calendar year.
    ``(c) Definitions.--For purposes of this subchapter--
            ``(1) Specified social security tax.--The term `specified 
        social security tax' means--
                    ``(A) the tax imposed by section 3101(a) (and so 
                much of the tax imposed by section 3201(a) or section 
                3211(a) as is determined by reference to the tax 
                imposed by section 3101(a)), and
                    ``(B) \1/2\ the tax imposed by section 1401(a).
            ``(2) Social security trust fund.--The term `social 
        security trust fund' means--
                    ``(A) the Federal Old-Age and Survivors Insurance 
                Trust Fund established by section 201(a) of the Social 
                Security Act,
                    ``(B) the Federal Disability Insurance Trust Fund 
                established by section 201(b) of the Social Security 
                Act, and
                    ``(C) the Social Security Equivalent Benefit 
                Account established under section 15A of the Railroad 
                Retirement Act of 1974.
    ``(d) Determination Based on Estimates.--Determinations under this 
section and sections 2 and 3 of the Raise Wages, Cut Carbon Act of 2019 
shall be made on the basis of estimates by the Secretary. To the extent 
that any such determination for any period is determined to have been 
inaccurate, such determination for the subsequent period shall be 
appropriately increased or decreased by the amount that the previous 
determination was less than, or in excess of, the more accurate 
determination.
    ``(e) Publication of Rate Reductions.--Any adjustment under this 
section of social security tax rates for any calendar year shall be 
published in the Federal Register not later than 2 months before the 
beginning of such calendar year.

               ``PART II--TAX ON COMBUSTIBLE FOSSIL FUELS

``Sec. 4692. Imposition of tax.
``Sec. 4693. Refunds or credits.
``Sec. 4694. Other definitions and special rules.

``SEC. 4692. IMPOSITION OF TAX.

    ``(a) In General.--There is hereby imposed a tax on any taxable 
carbon substance sold by the manufacturer, producer, or importer 
thereof.
    ``(b) Amount of Tax.--
            ``(1) In general.--The amount of tax imposed by subsection 
        (a) on any taxable carbon substance shall be the applicable 
        amount per ton of the carbon dioxide emissions potential of 
        such substance, as determined by the Secretary in consultation 
        with the Secretary of Energy.
            ``(2) Fractional part of ton.--In the case of a fraction of 
        a ton, the tax imposed by subsection (a) shall be the same 
        fraction of the amount of such tax imposed on a whole ton.
            ``(3) Applicable amount.--
                    ``(A) In general.--For purposes of this part, the 
                applicable amount is--
                            ``(i) for calendar year 2020, $40,
                            ``(ii) for any calendar year following a 
                        year which is not a national emissions target 
                        attainment year, the sum of--
                                    ``(I) the product of the amount in 
                                effect under this subparagraph for the 
                                preceding calendar year and 102.5 
                                percent, and
                                    ``(II) the inflation adjustment 
                                amount determined under subparagraph 
                                (B), and
                            ``(iii) for any calendar year following a 
                        year which is a national emissions target 
                        attainment year, the sum of--
                                    ``(I) the amount in effect under 
                                this subparagraph for the preceding 
                                calendar year, and
                                    ``(II) the inflation adjustment 
                                amount determined under subparagraph 
                                (B).
                    ``(B) Inflation adjustment amount.--
                            ``(i) In general.--The inflation adjustment 
                        amount for any calendar year shall be an amount 
                        (not less than zero) equal to the product of--
                                    ``(I) the amount determined under 
                                subparagraph (A)(ii)(I) or (A)(iii)(I), 
                                as applicable, for such year, and
                                    ``(II) the percentage by which the 
                                CPI for the preceding calendar year 
                                exceeds the CPI for the second 
                                preceding calendar year.
                            ``(ii) CPI.--Rules similar to the rules of 
                        paragraphs (4) and (5) of section 1(f) shall 
                        apply for purposes of this paragraph.
                    ``(C) Rounding.--The applicable amount under this 
                subsection shall be rounded up to the next whole dollar 
                amount.
                    ``(D) National emissions target attainment year.--
                For purposes of subparagraph (A), a calendar year is a 
                national emissions target attainment year if the level 
                of greenhouse gas emissions in the United States for 
                the calendar year does not exceed 20 percent of the 
                level of greenhouse gas emissions in the United States 
                for calendar year 2005 as determined by the Secretary 
                in consultation with the Administrator of the 
                Environmental Protection Agency.
    ``(c) Taxable Carbon Substance.--For purposes of this subchapter, 
the term `taxable carbon substance' means--
            ``(1) coal (including lignite and peat),
            ``(2) petroleum and any petroleum product (as defined in 
        section 4612(a)(3)), and
            ``(3) natural gas,
which is extracted, manufactured, or produced in the United States or 
entered into the United States for consumption, use, or warehousing.
    ``(d) Substance Taxed Only Once.--No tax shall be imposed by 
subsection (a) with respect to a taxable carbon substance if the person 
who would be liable for such tax establishes that a prior tax imposed 
by such section has been imposed with respect to such substance.

``SEC. 4693. REFUNDS OR CREDITS.

    ``(a) Sequestered Carbon.--Under regulations prescribed by the 
Secretary, if a person uses a taxable carbon substance so that the 
carbon associated with such substance will not be emitted, then an 
amount equal to the amount of tax in effect under section 4692(b) with 
respect to such substance for the calendar year in which such use 
begins shall be allowed as a credit or refund (without interest) to 
such person in the same manner as if it were an overpayment of tax 
imposed by section 4692.
    ``(b) Previously Taxed Carbon Substances Used To Make Another 
Taxable Carbon Substance.--Under regulations prescribed by the 
Secretary, if--
            ``(1) a tax under section 4692 was paid with respect to any 
        taxable carbon substance, and
            ``(2) such substance was used by any person in the 
        manufacture or production of any other substance which is a 
        taxable carbon substance,
then an amount equal to the tax so paid shall be allowed as a credit or 
refund (without interest) to such person in the same manner as if it 
were an overpayment of tax imposed by section 4692. In any case to 
which this subsection applies, the amount of any such credit or refund 
shall not exceed the amount of tax imposed by section 4692 on the other 
taxable fuel manufactured or produced (or which would have been imposed 
by such subsection on such other fuel but for section 4692(d)).
    ``(c) Exemption for Exports.--
            ``(1) Tax-free sales.--
                    ``(A) In general.--No tax shall be imposed under 
                subsection (a) on the sale by the manufacturer or 
                producer of any taxable carbon substance for export or 
                for resale by the purchaser to a second purchaser for 
                export.
                    ``(B) Proof of export required.--Rules similar to 
                the rules of section 4221(b) shall apply for purposes 
                of subparagraph (A).
            ``(2) Credit or refund.--If--
                    ``(A) any person exports--
                            ``(i) a taxable carbon substance, or
                            ``(ii) any other product any portion of the 
                        cost of which is attributable to the use of any 
                        taxable carbon substance as an energy source 
                        for the manufacture or production of such 
                        product, and
                    ``(B) such person establishes to the satisfaction 
                of the Secretary the portion of such cost which is 
                attributable to the tax under section 4692,
        credit or refund (without interest) of such tax shall be 
        allowed or made to such person.
            ``(3) Regulations.--The Secretary shall prescribe such 
        regulations as may be necessary to carry out the purposes of 
        this subsection.

``SEC. 4694. OTHER DEFINITIONS AND SPECIAL RULES.

    ``(a) Definitions.--For purposes of this subchapter--
            ``(1) United states.--The term `United States' has the 
        meaning given such term by section 4612(a)(4).
            ``(2) Importer.--The term `importer' means the person 
        entering the article for consumption, use, or warehousing.
            ``(3) Ton.--The term `ton' means 2,000 pounds. In the case 
        of any taxable carbon substance which is a gas, the term `ton' 
        means the amount of such gas in cubic feet which is the 
        equivalent of 2,000 pounds on a molecular weight basis.
    ``(b) Use Treated as Sale.--If any person manufactures, produces, 
or imports any taxable carbon substance and uses such substance, then 
such person shall be liable for tax under section 4692 in the same 
manner as if such substance were sold by such person.
    ``(c) Special Rules for Inventory Exchanges.--
            ``(1) In general.--Except as provided in paragraph (2), in 
        any case in which a manufacturer, producer, or importer of a 
        taxable carbon substance exchanges such substance as part of an 
        inventory exchange with another person--
                    ``(A) such exchange shall not be treated as a sale, 
                and
                    ``(B) such other person shall, for purposes of 
                section 4692, be treated as the manufacturer, producer, 
                or importer of such substance.
            ``(2) Registration requirement.--Paragraph (1) shall not 
        apply to any inventory exchange unless--
                    ``(A) both parties are registered with the 
                Secretary as manufacturers, producers, or importers of 
                taxable carbon substances, and
                    ``(B) the person receiving the taxable carbon 
                substance has, at such time as the Secretary may 
                prescribe, notified the manufacturer, producer, or 
                importer of such person's registration number and the 
                internal revenue district in which such person is 
                registered.
            ``(3) Inventory exchange.--For purposes of this subsection, 
        the term `inventory exchange' means any exchange in which 2 
        persons exchange property which is, in the hands of each 
        person, property described in section 1221(a)(1).

        ``PART III--TAX ON CERTAIN ADDITIONAL IMPORTED PRODUCTS

``Sec. 4695. Imposition of tax.
``Sec. 4696. Imported taxable product.

``SEC. 4695. IMPOSITION OF TAX.

    ``(a) In General.--There is hereby imposed a tax on any imported 
taxable product sold or used by the importer thereof.
    ``(b) Amount of Tax.--The amount of the tax imposed by subsection 
(a) with respect to any imported taxable product shall be the 
applicable amount under section 4692 per ton on the lesser of--
            ``(1) the taxable carbon substances used in the manufacture 
        or production of such product, or
            ``(2) the carbon dioxide emissions attributable to the 
        manufacture or production of such product.
    ``(c) Procedure To Challenge Information Provided by Importer.--The 
Secretary shall establish a procedure under which interested persons 
may examine the information provided by an importer for purposes of 
this section, and bring to the attention of the Secretary any suspected 
errors in such information.

``SEC. 4696. IMPORTED TAXABLE PRODUCT.

    ``(a) In General.--For purposes of this part, the term `imported 
taxable product' means any article which, at the time of such article's 
sale or use by the importer, is described in the same heading of the 
Harmonized Tariff Schedule of the United States as a like article 
produced in a listed industry.
    ``(b) Listed Industry.--For purposes of this section--
            ``(1) In general.--Except as provided in paragraph (2), the 
        term `listed industry' means any industry listed by the 
        Administrator as being among the industries which, in the 
        aggregate, account for 95 percent of the taxable carbon 
        substances used in the United States. An industry may not be 
        omitted from the list under the preceding sentence if it uses 
        more taxable carbon substances per unit of output than any 
        industry which is so listed.
            ``(2) Special rule for 2020 through 2022.--
                    ``(A) 2020.--During 2020, the term `listed 
                industry' shall include only the 6 industries on the 
                list under paragraph (1) having the highest average use 
                of taxable carbon substances per unit of output.
                    ``(B) 2021 and 2022.--During 2021 and 2022, the 
                term `listed industry' shall include only--
                            ``(i) the industries described in 
                        subparagraph (A), and
                            ``(ii)(I) in the case of 2021, the \1/3\ of 
                        the remaining industries on such list having 
                        the highest average use of taxable carbon 
                        substances per unit of output, or
                            ``(II) in the case of 2022, the \2/3\ of 
                        the remaining industries on such list having 
                        the highest average use of taxable carbon 
                        substances per unit of output.
    ``(c) Other Definitions.--For purposes of this part, the terms 
`importer', `taxable carbon substance', and `United States' have the 
respective meanings given such terms by part II.

             ``PART IV--TAX ON FLUORINATED GREENHOUSE GASES

``SEC. 4697. IMPOSITION OF TAX.

    ``(a) Fluorinated Gas Fee.--There is hereby imposed a tax on any 
fluorinated greenhouse gas which is required to be reported under part 
98 of title 40, Code of Federal Regulations.
    ``(b) Amount.--The tax imposed under subsection (a) shall be paid 
by the person required to so report in 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 10 percent of the applicable 
        amount in effect under section 4692 for the calendar year of 
        such emission.

     ``PART V--SUPERMAJORITY REQUIRED TO CHANGE REVENUE NEUTRALITY

``SEC. 4698. SUPERMAJORITY REQUIRED.

    ``A bill, joint resolution, amendment to a bill or joint 
resolution, or conference report that increases aggregate revenues 
under parts II, III, and IV greater than the aggregate of--
            ``(1) the reduction in revenues under part I, and
            ``(2) the aggregate expenditures under sections 2 and 3 of 
        the Raise Wages, Cut Carbon Act of 2019,
may not be considered as passed or agreed to by the House of 
Representatives or the Senate unless so determined by a vote of not 
less than two-thirds of the Members of the House of Representatives or 
the Senate (as the case may be) voting, a quorum being present.''.
    (b) Clerical Amendment.--The table of subchapters for chapter 38 of 
such Code is amended by adding at the end the following new item:

``subchapter f. reduction of social security taxes; tax on combustible 
                            fossil fuels''.

    (c) Effective Date.--The amendments made by this section shall take 
effect on January 1, 2020.

SEC. 5. 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. SUSPENSION OF REGULATION OF FUELS AND EMISSIONS BASED ON 
              GREENHOUSE GAS EFFECTS.

    ``(a) Fuels.--Unless specifically authorized in section 202, 211, 
213, or 231 or this section, if a tax is imposed by part II or III of 
subchapter E of chapter 38 of the Internal Revenue Code of 1986 with 
respect to a covered fuel, the Administrator shall not 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, or 231 or this section, if a tax is imposed by part IV of 
subchapter E of chapter 38 of the Internal Revenue Code of 1986 with 
respect to a fluorinated greenhouse gas, the Administrator shall not 
enforce any rule limiting such gas under this Act (or impose any 
requirement on any State to limit such gas) on the basis of the 
greenhouse gas effects of such gas.
    ``(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 black carbon or 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) sources that--
                    ``(A) are subject to subpart OOOO or OOOOa of part 
                60 of title 40, Code of Federal Regulations, as in 
                effect or January 1, 2018; or
                    ``(B) would be subject to such subpart OOOO or 
                subpart OOOOa if such subpart applied regardless of the 
                date on which construction, modification, or 
                reconstruction of the source involved commenced; or
            ``(2) POTW Treatment Plants (as defined in section 403.3(r) 
        of title 40, Code of Federal Regulations).
    ``(e) Suspension Expiration.--
            ``(1) Determination.--The Administrator shall make a 
        determination by March 30, 2030, and no less than once every 
        five years thereafter, as to whether cumulative greenhouse gas 
        emissions from covered fuels subject to tax under part II or 
        III of subchapter E of chapter 38 of the Internal Revenue Code 
        of 1986 during the period from calendar year 2022 through the 
        calendar year preceding the determination exceed the cumulative 
        emissions for that period that would have occurred if 
        subsection (a) had not applied during such period.
            ``(2) Consequence of cumulative emissions exceedance.--If 
        the Administrator determines under paragraph (1) that 
        cumulative greenhouse gas emissions from covered fuels subject 
        to tax under part II or III of subchapter E of chapter 38 of 
        the Internal Revenue Code of 1986 exceed the cumulative 
        emissions for the period covered by the determination that 
        would have occurred if subsection (a) had not applied during 
        such period, then subsections (a) and (b) of this section, and 
        the prohibition in section 211(c)(5) of this Act, shall cease 
        to apply as of such determination.
    ``(f) Assuring Environmental Integrity.--
            ``(1) Authority.--If the Administrator makes the 
        determination described in subsection (e)(2), the Administrator 
        shall--
                    ``(A) issue such regulations as the Administrator 
                deems necessary to bring greenhouse gas emissions from 
                covered fuels subject to tax under part II or III of 
                subchapter E of chapter 38 of the Internal Revenue Code 
                of 1986 to levels that are at or below the level at 
                which such emissions would have been if subsection (a) 
                had never applied, and
                    ``(B) require in such regulations that additional 
                reductions in greenhouse gas emissions are achieved to 
                fully compensate for any amount by which greenhouse gas 
                emissions from such fuels during the period referred to 
                in subsection (e)(2) exceeded the levels at which such 
                emissions would have been if subsection (a) had never 
                applied.
            ``(2) Deadline for finalizing regulations.--The 
        Administrator shall finalize any regulations required by 
        paragraph (1) not later than two years after the Administrator 
        makes the relevant determination pursuant to such paragraph.
            ``(3) Achievement of additional reductions.--Regulations 
        issued pursuant to paragraph (1) shall ensure that any 
        additional reductions required by paragraph (1)(B) are fully 
        achieved by no later than eight years after the Administrator 
        makes the determination described in subsection (e)(1).
    ``(g) Definitions.--In this section--
            ``(1) Greenhouse gas.--The term `greenhouse gas' means 
        carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), 
        sulfur hexafluoride (SF6), hydrofluorocarbons (HFCs), 
        perfluorocarbon (PFCs), and other gases as defined by rule of 
        the Administrator.
            ``(2) Greenhouse gas effect.--The term `greenhouse gas 
        effect' 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.''.
    (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 subsections (a) and (b) of section 
        330, the Administrator may--
                    ``(A) limit the emission of any greenhouse gas (as 
                defined in section 330(g)) on the basis of the 
                emission's greenhouse gas effects (as defined in such 
                section) 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) The Administrator shall not, pursuant to this subsection, 
impose on any manufacturer or processor of fuel any requirement for the 
purpose of reducing the emission of any greenhouse gas (as defined in 
section 330(g)) produced by combustion of the fuel on the basis of the 
emission's greenhouse gas effects (as defined in such section).''.
    (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 section 330(a), 
the Administrator may limit the emission of any greenhouse gas (as 
defined in section 330(g)) on the basis of the emission's greenhouse 
gas effects (as defined in such section) 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. 7571) 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 330(g)) on the basis of the emission's greenhouse gas 
effects (as defined in such section) 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>