No official summary available for this bill.
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6665 Introduced in House (IH)]
<DOC>
118th CONGRESS
1st Session
H. R. 6665
To amend the Internal Revenue Code of 1986 to eliminate certain fuel
excise taxes and impose a tax on greenhouse gas emissions to provide
revenue for maintaining and building American infrastructure, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 7, 2023
Mr. Fitzpatrick (for himself and Mr. Carbajal) introduced the following
bill; which was referred to the Committee on Ways and Means, and in
addition to the Committees on Energy and Commerce, Natural Resources,
Education and the Workforce, Transportation and Infrastructure,
Science, Space, and Technology, and Agriculture, for a period to be
subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee
concerned
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to eliminate certain fuel
excise taxes and impose a tax on greenhouse gas emissions to provide
revenue for maintaining and building American infrastructure, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Modernizing
America with Rebuilding to Kickstart the Economy of the Twenty-first
Century with a Historic Infrastructure-Centered Expansion Act'' or the
``MARKET CHOICE Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings.
TITLE I--GREENHOUSE GAS EMISSIONS
Sec. 101. Treatment of domestic greenhouse gas emissions.
Sec. 102. Border greenhouse gas adjustments.
TITLE II--DISTRIBUTION OF REVENUES FROM TAXATION OF GREENHOUSE GAS
EMISSIONS
Subtitle A--Rebuilding Infrastructure and Solutions for the Environment
Trust Fund
Sec. 201. Establishment of the RISE Trust Fund.
Sec. 202. Appropriations from the RISE Trust Fund.
Sec. 203. State grants.
Subtitle B--Certain Manufacturers Excise Taxes
Sec. 211. Repeal of Federal motor vehicle and aviation fuel taxes.
Sec. 212. Modifications of qualifying advanced coal project credit.
TITLE III--AMENDMENTS TO OTHER LAWS
Subtitle A--Amendments to Federal Environmental Statutes
Sec. 301. Amendments to the Clean Air Act.
Sec. 302. Frequent and chronic flooding mitigation and adaptation
infrastructure projects.
Sec. 303. No preemption of State law.
Subtitle B--Assistance to Displaced Workers in the Energy Sector
Sec. 321. Assistance to displaced workers in the energy sector.
TITLE IV--NATIONAL CLIMATE COMMISSION
Sec. 401. Establishment of Commission.
Sec. 402. Duties of Commission.
Sec. 403. Powers of Commission.
Sec. 404. Funding for the activities of the Commission.
Sec. 405. Staff of the Commission.
SEC. 2. FINDINGS.
Congress finds that--
(1) roads, bridges, airports, and urban transportation
systems are essential to the economic and national security of
the United States;
(2) there is a chronic shortfall in funding for the
maintenance of highways, bridges, and other critical
infrastructure;
(3) strategic investments in new infrastructure will allow
for economic growth and dynamism in the 21st century;
(4) there has been a marked increase in extreme weather
events and the negative impacts of a changing climate are
expected to worsen in every region of the United States;
(5) if left unaddressed, the consequences of a changing
climate have the potential to adversely impact the health of
all Americans, harm the economy, and impose substantial costs
on local, State, and Federal budgets;
(6) efforts to reduce climate risk should protect our
Nation's economy, security, infrastructure, agriculture, water
supply, public health, and public safety; and
(7) there is bipartisan support for pursuing efforts to
reduce greenhouse gas emissions through economically viable,
broadly supported private and public policies and solutions.
TITLE I--GREENHOUSE GAS EMISSIONS
SEC. 101. TREATMENT OF DOMESTIC GREENHOUSE GAS EMISSIONS.
(a) In General.--The Internal Revenue Code of 1986 is amended by
adding at the end the following new subtitle:
``Subtitle L--Greenhouse Gas Emissions
``PART 1--TAXATION OF GREENHOUSE GAS EMISSIONS
``Sec. 9901. Imposition of tax on combusted fossil fuel greenhouse gas
emissions.
``Sec. 9902. Imposition of tax on greenhouse gas emissions from certain
industrial processes.
``Sec. 9903. Imposition of tax on greenhouse gas emissions from certain
product uses.
``Sec. 9904. Calculation of taxable emissions.
``Sec. 9905. Credit for state payments.
``Sec. 9906. Penalties for nonpayment.
``Sec. 9907. Definitions.
``SEC. 9901. IMPOSITION OF TAX ON COMBUSTED FOSSIL FUEL GREENHOUSE GAS
EMISSIONS.
``(a) In General.--There is hereby imposed a tax on fossil fuels
produced within, or imported into, the United States.
``(b) Rate of Tax.--
``(1) Greenhouse gases that would be released if the fossil
fuel were combusted.--The tax imposed by subsection (a) shall
be the applicable amount per ton of carbon dioxide equivalent
of all greenhouse gasses that would be released if the fossil
fuel were combusted.
``(2) Applicable amount of carbon dioxide equivalent
emissions.--For purposes of paragraph (1), the term `applicable
amount' means--
``(A) for calendar year 2025, $35 per metric ton of
carbon dioxide equivalent emissions, and
``(B) for each calendar year after 2025, the tax
rate shall be the sum of--
``(i) the previous calendar year's tax
rate, plus
``(ii) the sum of--
``(I) 5 percentage points, plus
``(II) a percentage increase in the
previous year's tax rate equal to the
increase in the Consumer Price Index
for the previous calendar year.
``(3) Consumer price index for any calendar year.--For
purposes of subparagraph (B), the Consumer Price Index for the
previous calendar year is the average of the Consumer Price
Index for all-urban consumers published by the Department of
Labor as of the close of the 12-month period ending on August
31 of such calendar year. For purposes of the preceding
sentence, the revision of the Consumer Price Index which is
most consistent with the Consumer Price Index for calendar year
1986 shall be used.
``(4) Rate adjustment based on emission levels.--
``(A) Report.--Not later than March 30, 2026, and
annually thereafter, the Secretary and the
Administrator shall jointly report the emissions during
the calendar year ending on the preceding December 31
from sources subject to taxation under this part. The
report shall determine whether the cumulative amount of
annual emissions reported for the period beginning in
calendar year 2025 and through the end of the preceding
calendar year were less than the emissions levels
specified in the following schedule:
``(i) The total emissions through calendar
year 2025 are 4,700 million metric tons of
carbon dioxide equivalent.
``(ii) The total emissions through calendar
year 2026 are 9,400 million metric tons of
carbon dioxide equivalent.
``(iii) The total emissions through
calendar year 2027 are 14,000 million metric
tons of carbon dioxide equivalent.
``(iv) The total emissions through calendar
year 2028 are 18,300 million metric tons of
carbon dioxide equivalent.
``(v) The total emissions through calendar
year 2029 are 22,600 million metric tons of
carbon dioxide equivalent.
``(vi) The total emissions through calendar
year 2030 are 26,800 million metric tons of
carbon dioxide equivalent.
``(vii) The total emissions through
calendar year 2031 are 31,000 million metric
tons of carbon dioxide equivalent.
``(viii) The total emissions through
calendar year 2032 are 35,100 million metric
tons of carbon dioxide equivalent.
``(ix) The total emissions through calendar
year 2033 are 39,100 million metric tons of
carbon dioxide equivalent.
``(x) The total emissions through calendar
year 2034 are 43,100 million metric tons of
carbon dioxide equivalent.
``(xi) The total emissions through calendar
year 2035 are 47,100 million metric tons of
carbon dioxide equivalent.
``(B) Adjustments for report period.--
``(i) In general.--Not later than March 30,
2027, and every two years thereafter, the
Secretary shall determine whether an adjustment
is required in accordance with clause (ii).
``(ii) Period through 2036.--If the
emission level reported under subparagraph (A)
for calendar year 2026, and every second
calendar year thereafter through calendar year
2036, exceeds the level for such calendar year
specified in clauses (i) through (xi) of
subparagraph (A), then the applicable amount
under paragraph (2) for the calendar year
beginning on the next January 1 following the
determination in clause (i) shall, after the
increase under paragraph (2) for such next
calendar year, be increased by an additional $4
per metric ton.
``(c) By Whom Paid.--The tax imposed by subsection (a) shall be
paid by the owner of the fossil fuel at the point of taxation.
``(d) Point of Taxation.--
``(1) For fossil fuels produced within the United States,
the point of taxation shall be--
``(A) for coal, the mine mouth or, for washed coal,
the exit from the coal preparation and processing
plant,
``(B) for petroleum products, the exit point from
the refinery, and
``(C) for natural gas, the exit from the gas
processing plant or, for natural gas that is not
treated at a gas processing plant, the point of sale to
the person who combusts the gas or incorporates it into
a product that is not intended for combustion.
``(2) For any fossil fuel imported into the United States,
the point of taxation shall be the point at which it first
enters the United States.
``(e) Exemptions.--
``(1) Exemption for noncombustive uses.--
``(A) Refund for reduction or elimination of
emissions.--Any manufacturer of a product that
incorporates a fossil fuel that has been taxed under
this section who can demonstrate to the Secretary that
the fossil fuel has been transformed via the
manufacture of the product so that the fossil fuel's
emissions will be reduced or eliminated over the
product's lifetime shall be entitled to a refund of the
tax paid under this section on the proportion of the
emissions reduced thereby, as determined by the
Secretary.
``(B) Rule.--The Secretary, in consultation with
the Administrator, shall establish by rule the criteria
and process by which product manufacturers can
demonstrate that the conditions in subparagraph (A)
have been satisfied.
``(C) Publication of regulations.--The Secretary
shall publish the regulations required by this
subsection no later than one year prior to the start of
the calendar year referred to in section 9901(b)(2)(A).
The Secretary may not collect the tax imposed by this
section for any calendar year that begins less than one
year after the regulations are published.
``(2) Exemption for carbon capture and storage.--
``(A) Refund for sequesters.--Any person who
sequesters greenhouse gas emissions resulting from the
combustion of fossil fuel that has passed through a
point of taxation shall be entitled to a refund of the
tax imposed by this section. Emissions that are used
for enhanced oil recovery shall be entitled for such
refund provided that these emissions meet all of the
criteria applicable to other emissions that qualify for
such refund.
``(B) Rule.--The Secretary shall establish by rule
the procedures by which to apply for such refunds and
such refunds shall be paid within six months of the
Secretary receiving an approvable application.
``(C) Time of refund.--The Secretary may not refund
any amounts under this paragraph until such time as the
Secretary has published the regulations described in
section 45Q(f)(2).
``SEC. 9902. IMPOSITION OF TAX ON GREENHOUSE GAS EMISSIONS FROM CERTAIN
INDUSTRIAL PROCESSES.
``(a) In General.--There is hereby imposed a tax on industrial
process greenhouse gas emissions by certain source categories.
``(b) List of Source Categories.--
``(1) Initial list.--The Congress establishes for purposes
of this section a list of source categories subject to this
section as follows:
``(A) Iron and steel production and metallurgical
coke production.
``(B) Underground coal mining.
``(C) Coal preparation and processing plants.
``(D) Refineries.
``(E) Cement production.
``(F) Petrochemical production.
``(G) Lime production.
``(H) Ammonia production.
``(I) Aluminum production.
``(J) Soda ash production.
``(K) Ferroalloy production.
``(L) Phosphoric acid production.
``(M) Glass production.
``(N) Zinc production.
``(O) Lead production.
``(P) Magnesium production and processing.
``(Q) Nitric acid production.
``(R) Adipic acid production.
``(S) Semiconductor manufacture.
``(T) Electrical transmission and distribution.
``(2) Revision of the list.--The Administrator shall review
the list of source categories established by this subsection
not less than once every five years to determine if they should
continue to be listed and publish the results of that review.
The Administrator may, if appropriate, add any source
categories to this list by rule.
``(3) Removal of a source category from the list.--The
Administrator may remove a source category from this list only
if--
``(A) the total emissions from the entire source
category which are taxable under this section have been
less than 250,000 metric tons of carbon dioxide
equivalent per year for each of three consecutive
years,
``(B) the average emissions from facilities in the
source category which are taxable under this section
have been less than 25,000 metric tons of carbon
dioxide equivalent per year for each of the years
referred in subparagraph (A), and
``(C) the Administrator determines that there is no
reasonable possibility that the total emissions from
the entire source category which are taxable under this
section will exceed 250,000 metric tons per year of
carbon dioxide equivalent within any of the five years
following such determination.
``(4) Addition of a source category to the list.--The
Administrator may add a source category to this list only if
the Administrator determines that--
``(A) the total emissions from the entire source
category which are taxable under this section have been
greater than 250,000 metric tons per year of carbon
dioxide equivalent in any two years out of the
preceding five years,
``(B) the average emissions from facilities in the
source category which are taxable under this section
have been greater than 25,000 metric tons per year of
carbon dioxide equivalent in the years in which
emissions from the entire source category have been
greater than 250,000 tons per year, and
``(C) there is a reasonable possibility that the
total emissions from the entire source category which
are taxable under this section will be greater than
250,000 metric tons per year of carbon dioxide
equivalent in any year within the next five years
following such determination.
``(c) Rate of Tax.--The rate of tax shall be the same as the rate
given in section 9901(b)(2).
``(d) By Whom Paid.--The tax imposed by subsection (a) shall be
paid by the owner or operator of the point of taxation.
``(e) Point of Taxation.--The point of taxation shall be any
facility in a source category which emits more than 25,000 metric tons
of carbon dioxide equivalent subject to taxation under this section in
any calendar year.
``SEC. 9903. IMPOSITION OF TAX ON GREENHOUSE GAS EMISSIONS FROM CERTAIN
PRODUCT USES.
``(a) In General.--There is hereby imposed a tax on non-fossil-
fuel-greenhouse-gas emissions by certain manufactured products when
used for their intended purposes that are manufactured within or
imported into, the United States.
``(b) List of Products.--
``(1) Initial list.--The Congress establishes for purposes
of this section a list of products subject to this section as
follows:
``(A) Fuel ethanol.
``(B) Industrial carbonates.
``(C) Carbon dioxide urea.
``(D) Soda ash.
``(E) Nitrous oxide.
``(F) Ozone depleting substances, but not if the
United States has ratified the Kigali Amendment to the
Montreal Protocol and is subject to Article 2J,
paragraph 1 of the Amended Montreal Protocol.
``(G) Biodiesel.
``(H) Solid biomass fuels.
``(2) Revision of the list.--The Administrator shall review
the list of products established by this subsection not less
than once every five years to determine if they should continue
to be listed and publish the results of that review. The
Administrator may, if appropriate, add any product to this list
by rule.
``(3) Removal of a product from the list.--The
Administrator may remove a product from this list only if--
``(A) the total emissions from all of the product
used within the United States has been less than
250,000 metric tons per year of carbon dioxide
equivalent for each of three consecutive years, and
``(B) the Administrator determines that there is no
reasonable possibility that the total emissions from
all of the product used in the United States will
exceed 250,000 metric tons per year of carbon dioxide
equivalent within any of the five years following such
determination.
``(4) Addition of a product to the list.--The Administrator
may add a product to this list only if the Administrator
determines that--
``(A) the total emissions from all of the product
used within the United States has been greater than
250,000 metric tons per year of carbon dioxide
equivalent in any two years out of the preceding five
years, and
``(B) there is a reasonable possibility that the
total emissions from all of the product used within the
United States will be greater than 250,000 metric tons
per year of carbon dioxide equivalent in any year
within the next five years following such
determination.
``(c) Rate of Tax.--The rate of tax shall be the same as the rate
given in section 9901(b)(2).
``(d) By Whom Paid.--The tax imposed by subsection (a) shall be
paid--
``(1) for products manufactured in the United States, by
the owner or operator of the point of taxation, and
``(2) for products imported into the United States, by the
owner of the product when it enters the United States.
``(e) Point of Taxation.--The point of taxation shall be--
``(1) for products manufactured in the United States, the
manufacturing facility,
``(2) for products imported into the United States, the
point at which it first enters the United States, and
``(3) for domestically produced biomass fuel by a facility
that emits from combusted biomass fuel more than 25,000 metric
tons of carbon dioxide equivalent greenhouse gases in a year,
the facility that combusts the biomass fuel.
``SEC. 9904. CALCULATION OF TAXABLE EMISSIONS.
``(a) How To Calculate Taxable Emissions.--In consultation with the
Department of Energy, the Administrator shall establish by rule (and
may, from time to time, revise) the method by which taxable emissions
under this part shall be calculated.
``(b) Categories and Subcategories Considered.--For purposes of
calculating emissions taxable under--
``(1) section 9901, the Administrator shall determine by
rule the amount of carbon dioxide equivalent that would be
emitted if each fossil fuel were combusted, and the
Administrator may establish by rule such subcategories of each
fuel and the means by which it is combusted as the
Administrator deems appropriate,
``(2) section 9902, the Administrator may determine by rule
such subcategories of any industrial process category listed in
subsection 9902(b) as the Administrator deems appropriate, and
``(3) section 9903, for fuel ethanol, biodiesel, and solid
biomass fuels the Administrator shall determine by rule the
amount of carbon dioxide equivalent that would be emitted based
on the lifecycle greenhouse gas emissions of the product
(excluding emissions from fossil fuels that have passed through
a point of taxation), and the Administrator may determine by
rule such subcategories of manufactured products listed in
subsection 9903(b) as the Administrator deems appropriate.
``(c) Methods.--Where greenhouse gas emissions subject to taxation
under any section of this part are combined with greenhouse gas
emissions subject to taxation under any other section of this part, the
Administrator shall ensure, to the greatest degree possible, that the
methods required to determine the emissions taxable under any section
of this part do not include any emissions taxable under any other
section of this part.
``(d) Method Cost Differences.--The Administrator shall not require
the use of any method to calculate taxable emissions whereby the
difference in cost of the method compared to the next cheapest
alternative method is greater than the amount of the tax that would be
paid on the additional emissions determined by the more expensive
method.
``(e) Publication of Regulations.--The Administrator shall publish
the regulations required by this section no later than one year prior
to the start of the calendar year referred to in section 9901(b)(2)(A).
The Secretary may not collect the tax imposed by any section in this
part for any calendar year that begins less than one year after the
regulations applicable to each such section are published.
``SEC. 9905. CREDIT FOR STATE PAYMENTS.
``(a) Credit for Payments.--The Secretary shall allow any person
who is required to make payment for greenhouse gas emissions under this
part a credit for payments made on those emissions required under any
State law in the following manner:
``(1) For the year given in section 9901(b)(2), a credit
equal to 100 percent of the amount paid pursuant to
requirements of State law.
``(2) For the first year following the year used in
paragraph (1), a credit equal to 80 percent of the amount paid
pursuant to requirements of State law.
``(3) For the second year following the year used in
paragraph (1), a credit equal to 60 percent of the amount paid
pursuant to requirements of State law.
``(4) For the third year following the year used in
paragraph (1), a credit equal to 40 percent of the amount paid
pursuant to requirements of State law.
``(5) For the fourth year following the year used in
paragraph (1), a credit equal to 20 percent of the amount paid
pursuant to requirements of State law.
``(b) No Credit.--For all years following the year used in
paragraph (5), no credit shall be allowed.
``SEC. 9906. PENALTIES FOR NONPAYMENT.
``Any person who fails to comply with the requirements of section
9901, 9902, or 9903 shall be liable for payment to the Secretary,
without demand, of a penalty in the amount equal to 3 times the
applicable amount specified by those sections for the same tax year as
the year in which the person failed to comply with such requirements.
``SEC. 9907. DEFINITIONS.
``Unless otherwise provided, the definitions provided herein are
applicable to all provisions of this subtitle.
``(1) Administrator.--The term `Administrator' means the
Administrator of the Environmental Protection Agency.
``(2) Cardon dioxide equivalent.--The term `carbon dioxide
equivalent' means the number of metric tons of CO<INF>2</INF>
emissions with the same global warming potential over a 100-
year period as one metric ton of another greenhouse gas.
``(3) Coal.--The term `coal' means any of the recognized
classifications and ranks of coal, including anthracite,
bituminous, semibituminous, subbituminous, lignite, and peat.
``(4) Coal preparation and processing plant.--The term
`coal preparation and processing plant' means any facility
(excluding underground mining operations) which prepares coal
by one or more of the following processes: breaking, crushing,
screening, wet or dry cleaning, and thermal drying.
``(5) Enhanced oil recovery.--The term `enhanced oil
recovery' has the meaning defined at section 1.193-1(b)(2) of
title 26, Code of Federal Regulations, as in effect on the date
of enactment of this section.
``(6) Facility.--The term `facility' means any physical
property, plant, building, structure, source, or stationary
equipment located on one or more contiguous or adjacent
properties in actual physical contact or separated solely by a
public roadway or other public right-of-way and under common
ownership or common control, that emits or may emit any
greenhouse gas.
``(7) Fossil fuel.--The term `fossil fuel' means coal,
petroleum products, or natural gas.
``(8) Greenhouse gas.--The term `greenhouse gas' means
carbon dioxide, nitrous oxide, methane, hydrofluorocarbons,
perfluorocarbons, and sulfur hexafluoride.
``(9) Greenhouse gas effects.--The term `greenhouse gas
effects' means the adverse effects of greenhouse gasses on
health or welfare caused by the greenhouse gas's heat-trapping
potential or its effect on ocean acidification.
``(10) Lifecycle greenhouse gas emissions.--The term
`lifecycle greenhouse gas emissions' has the meaning given that
term in section 211 of the Clear Air Act.
``(11) Natural gas.--The term `natural gas' means any fuel
consisting in whole or in part of natural gas, including
components of natural gas such as methane and ethane; liquid
petroleum gas; synthetic gas derived from coal, petroleum, or
natural gas liquids; or any mixture of natural gas and
synthetic gas.
``(12) Petroleum products.--The term `petroleum products'
means unfinished oils, liquefied petroleum gases, pentanes
plus, aviation gasoline, motor gasoline, naphtha-type jet fuel,
kerosene-type jet fuel, kerosene, distillate fuel oil, residual
fuel oil, petrochemical feedstocks, special naphthas,
lubricants, waxes, petroleum coke, asphalt, road oil, still
gas, and miscellaneous products obtained from the processing of
crude oil (including lease condensate), natural gas, and other
hydrocarbon compounds. The term does not include natural gas,
liquefied natural gas, biofuels, methanol, and other
nonpetroleum fuels.
``(13) Publish.--The term `publish' means publication in
the Federal Register.
``(14) Refinery.--The term `refinery' means any facility
engaged in producing gasoline, kerosene, distillate fuel oils,
residual fuel oils, lubricants, or other products through
distillation of petroleum or through redistillation, cracking,
or reforming of unfinished petroleum derivatives.
``(15) Owner.--The term `owner' with respect to any fossil
fuel means any person who has legal title to the fossil fuel.
``(16) Owner or operator.--The term `owner or operator'
with respect to any fossil fuel means any person who has legal
title to the fossil fuel.
``(17) Sequesters.--The term `sequesters' means the
permanent storage of carbon dioxide or other greenhouse gas
such that it does not escape into the atmosphere, and is in
compliance with the regulations issued pursuant to section
45Q(f)(2).
``(18) Solid biomass.--The term `solid biomass' means
nonfossilized and biodegradable organic material originating
from plants, animals, or microorganisms, including products,
byproducts, residues and waste from agriculture, forestry, and
related industries as well as the nonfossilized and
biodegradable organic fractions of industrial and municipal
wastes, but does not include gases and liquids recovered from
the decomposition of nonfossilized and biodegradable organic
material.
``(19) Source category.--The term `source category' means
any category or subcategory regulated under part 60 of title
40, Code of Federal Regulations, or part 90 of title 40, Code
of Federal Regulations.''.
(b) Clerical Amendment.--The table of subtitles for the Internal
Revenue Code of 1986 is amended by adding at the end the following new
item:
``Subtitle L--Greenhouse Gas Emissions''.
(c) Effective Date.--The amendments made by this section shall
apply to emissions after the later of December 31, 2023, and the date
that is one year after the date regulations are promulgated under
section 9914 of the Internal Revenue Code of 1986.
SEC. 102. BORDER GREENHOUSE GAS ADJUSTMENTS.
(a) In General.--Subtitle L of the Internal Revenue Code of 1986,
as added by subsection (a), is further amended by adding at the end the
following new part:
``PART 2--TAX ADJUSTMENTS FOR IMPORTS AND EXPORTS OF GREENHOUSE GAS
INTENSIVE PRODUCTS
``Sec. 9911. Purposes.
``Sec. 9912. Definitions.
``Sec. 9913. Notification of foreign countries.
``Sec. 9914. Border tax adjustment rate.
``SEC. 9911. PURPOSES.
``(a) Purposes of Part.--The purposes of this part are--
``(1) to promote a strong global effort to significantly
reduce greenhouse gas emissions, and
``(2) to prevent carbon leakage.
``(b) Additional Purposes of Part.--The purposes of this part are
additionally--
``(1) to provide a rebate to exporters in domestic eligible
industrial sectors for the greenhouse gas emission costs of the
owners and operators incurred under this title, but not for
costs associated with other related or unrelated market
dynamics,
``(2) to ensure that imports from other countries, and, in
particular, fast-growing developing countries, do not enjoy
competitive advantages because of the carbon tax liability of
domestic manufacturers, and therefore increase their emissions,
``(3) to encourage foreign countries to take substantial
action with respect to their greenhouse gas emissions, and
``(4) to ensure that the measures described in this subpart
are designed and implemented in a manner consistent with
applicable international agreements to which the United States
is a party.
``SEC. 9912. DEFINITIONS.
``In this part:
``(1) Carbon leakage.--The term `carbon leakage' means any
substantial increase (as determined by the Secretary) in
greenhouse gas emissions by entities located in other countries
caused by a cost of production increase in the United States
resulting from implementation of this title.
``(2) Border tax adjustment.--The term `border tax
adjustment' means the levying of a tax on imported covered
goods equivalent to the amount of tax paid pursuant to part 1
of this subtitle in the manufacture of comparable domestic
manufactured goods, and the rebating of the tax paid pursuant
to part 1 of this subtitle that has been paid on covered goods
exported from the United States.
``(3) Border tax adjustment rate.--The term `border tax
adjustment rate' means the amount of tax that would be paid on
a covered good produced in the United States in the current
year.
``(4) Commissioner.--The term `Commissioner' means the
Commissioner of United States Customs and Border Protection.
``(5) Covered good.--The term `covered good' means a good
that is--
``(A) entered under a heading or subheading of the
Harmonized Tariff Schedule of the United States that
corresponds to the NAICS code for an eligible
industrial sector, as established in the concordance
between NAICS codes and the Harmonized Tariff Schedule
of the United States prepared by the United States
Census Bureau, or
``(B) a manufactured item for consumption.
``(6) Eligible industrial sector.--The term `eligible
industrial sector' means an industrial sector determined by the
Secretary under section 9913.
``(7) Industrial sector.--The term `industrial sector'
means any sector that--
``(A) is in the manufacturing sector (as defined in
NAICS codes 31, 32, and 33), or
``(B) is part of, or an entire, sector that
beneficiates or otherwise processes (including
agglomeration) metal ores, including iron and copper
ores, soda ash, and phosphate. The term `industrial
sector' does not include any part of a sector that
extracts fossil fuels, metal ores, soda ash, or
phosphate.
``(8) Manufactured item for consumption.--The term
`manufactured item for consumption' means any good--
``(A) that includes in substantial quantities one
or more goods like the goods produced by an eligible
industrial sector, and
``(B) for which the Secretary has determined, with
the concurrence of the Commissioner, that the
application of the border tax adjustment program
pursuant to this part is technically and
administratively feasible and appropriate to achieve
the purposes of this part, taking into account the
greenhouse gas intensity, and where appropriate the
trade intensity, of the industrial sector that produces
the good, as measured consistent with section 9913 and
the ability of the producers to recover cost increases
in the marketplace and other appropriate factors.
``(9) NAICS.--The term `NAICS' means the North American
Industrial Classification System of 2002.
``(10) Output.--The term `output' means the total tonnage
or other standard unit of production (as determined by the
Secretary) produced by an entity in an industrial sector.
``SEC. 9913. NOTIFICATION OF FOREIGN COUNTRIES.
``(a) In General.--As soon as practicable after the date of the
enactment of the Modernizing America with Rebuilding to Kickstart the
Economy of the Twenty-first Century with a Historic Infrastructure-
Centered Expansion Act, the President shall notify each foreign
country--
``(1) requesting the foreign country to take appropriate
measures to limit the greenhouse gas emissions of the foreign
country, and
``(2) indicating that a border tax adjustment may apply to
covered goods imported into and exported from the United
States.
``(b) Lists.--
``(1) In general.--Not later than 1 year after the date of
the enactment of the Modernizing America with Rebuilding to
Kickstart the Economy of the Twenty-first Century with a
Historic Infrastructure-Centered Expansion Act, the Secretary
shall promulgate a rule designating, based on the criteria
under subsection (c)(2), industrial sectors where covered
products are liable for the border tax adjustment.
``(2) Content.--The list shall include the amount of the
border tax adjustment rate for each covered good in the
following calendar year pursuant to section 9914.
``(3) Subsequent lists.--Not later than January 31 of each
calendar year after the calendar year in which the Modernizing
America with Rebuilding to Kickstart the Economy of the Twenty-
first Century with a Historic Infrastructure-Centered Expansion
Act is enacted, the Secretary shall publish in the Federal
Register an updated version of the list published under
paragraph (1).
``(c) Eligible Industrial Sectors.--
``(1) Presumptively eligible industrial sectors.--
``(A) Eligibility criteria.--
``(i) In general.--
``(I) Imported covered goods are
liable under this part if they are
produced in the United States in an
industrial sector that is included in a
6-digit classification of the NAICS
that meets the criteria in both clauses
(ii) and (iii).
``(II) Exported covered goods are
eligible under this part if they are
produced in the United States in an
industrial sector that is included in a
6-digit classification of the NAICS
that meets the criteria in clauses (ii)
and (iii).
``(ii) Greenhouse gas intensity.--As
determined by the Secretary, an industrial
sector meets the criteria of this clause if the
United States industrial sector has a
greenhouse gas intensity of at least 5 percent,
calculated by dividing--
``(I) the number of metric tons of
carbon dioxide equivalent greenhouse
gas emissions (including direct
emissions from fuel combustion, process
emissions, and indirect emissions from
the generation of electricity used to
produce the output of the sector) of
the sector based on data described in
subparagraph (C), multiplied by the
applicable rate in section 9901(b)(2),
by
``(II) the value of the shipments
of the sector, based on data described
in subparagraph (C).
``(iii) Trade intensity.--As determined by
the Secretary, an industrial sector meets the
criteria of this clause if the industrial
sector has a trade intensity of at least 15
percent, calculated by dividing--
``(I) the value of the total
imports and exports of the sector, by
``(II) the value of the shipments
plus the value of imports of the
sector, based on data described in
subparagraph (C).
``(B) Metal and phosphate production classified
under more than one naics code.--For purposes of this
section, the Secretary shall--
``(i) aggregate data for the beneficiation
or other processing (including agglomeration)
of metal ores, including iron and copper ores,
soda ash, or phosphate with subsequent steps in
the process of metal and phosphate
manufacturing, regardless of the NAICS code
under which the activity is classified, and
``(ii) aggregate data for the manufacturing
of steel with the manufacturing of steel pipe
and tube made from purchased steel in a
nonintegrated process.
``(C) Data sources.--
``(i) Value of shipments.--
``(I) In general.--The Secretary
shall determine the value of shipments
under this subsection from data from
the United States Census Annual Survey
of Manufacturers.
``(II) Average data available.--The
Secretary shall use the average of data
from the most recent 3 years for which
the data are available.
``(III) Average data not
available.--If data described in
subclause (II) are unavailable, the
Secretary shall make a determination
based on--
``(aa) data from the most
detailed industrial
classification level of the
Manufacturing Energy
Consumption Survey of the
Energy Information
Administration, and
``(bb) data from the most
recent Economic Census of the
United States.
``(IV) Data not available for
sector.--If data from the Manufacturing
Energy Consumption Survey or Economic
Census are unavailable for any sector
at the 6-digit classification level in
the NAICS, the Secretary may use
available Manufacturing Energy
Consumption Survey or Economic Census
data pertaining to a broader industrial
category classified in the NAICS.
``(V) Data not available for
processing.--If data relating to the
beneficiation or other processing
(including agglomeration) of metal ores
(including iron and copper ores, soda
ash, or phosphate) are not available
from the specified data sources, the
Secretary--
``(aa) shall use the best
available Federal or State
government data, and
``(bb) may use, to the
extent necessary,
representative data submitted
by entities that perform the
beneficiation or other
processing (including
agglomeration), in making a
determination.
``(ii) Imports and exports.--
``(I) In general.--The Secretary
shall base the value of imports and
exports under this subsection on United
States International Trade Commission
data.
``(II) Average data available.--The
Secretary shall use the average of data
from the three most recent years for
which the data are available.
``(III) Average data not
available.--If data from the United
States International Trade Commission
are unavailable for any sector at the
6-digit classification level in the
NAICS, the Secretary may use United
States International Trade Commission
data pertaining to a broader industrial
category classified in the NAICS.
``(iii) Percentages.--The Secretary shall
round the greenhouse gas intensity and trade
intensity percentages under subparagraph (A) to
the nearest whole number.
``(iv) Greenhouse gas emission
calculations.--When calculating the metric tons
of carbon dioxide equivalent greenhouse gas
emissions for each sector under subparagraph
(A)(ii)(I), the Secretary--
``(I) shall use the best available
data from the three most recent years
for which the data are available, and
``(II) may, to the extent necessary
with respect to a sector, use economic
and engineering models and the best
available information on technology
performance levels for the sector.
``(2) Administrative determination of additional eligible
industrial sectors.--
``(A) Updated trade intensity data.--The Secretary
shall designate as liable for the border tax adjustment
rate on imported products under this part an industrial
sector that--
``(i) met the greenhouse gas intensity
criteria in paragraph (1)(A)(ii) as of the date
of promulgation of the rule under paragraph
(1), and
``(ii) meets the trade intensity criteria
established under paragraph (1)(A)(iii), using
data sources described in paragraph (1)(C) from
any year after the passage of this Act.
``(B) Individual showing petition.--
``(i) Petition.--In addition to designation
under subparagraph (A), the owner or operator
of an entity or a group of entities that
collectively produce not less than 80 percent
of the average annual value of shipments from
within the sector of the group consistent with
subclause (I), that manufacture similar
products in an industrial sector may petition
the Secretary to designate as eligible
industrial sectors under this part an entity or
a group of entities that--
``(I) represent a sector using a
standard product classification, and
``(II) meet the respective import
and/or export eligibility criteria in
paragraph (1)(A)(i).
``(ii) Data.--In making a determination
under this subparagraph, the Secretary shall
consider--
``(I) data submitted by the
petitioner,
``(II) data solicited by the
Secretary from other entities in the
sector, and
``(III) data specified in paragraph
(1)(C).
``(iii) Basis of subsector determination.--
``(I) In general.--Except as
provided in subclause (II), the
Secretary shall determine an entity or
group of entities to be a subsector of
a 6-digit section of the NAICS code
based only on the products manufactured
and not the industrial process by which
the products are manufactured.
``(II) Type of material.--The
Secretary may determine an entity or
group of entities that manufacture a
product from primarily virgin material
to be a separate subsector from another
entity or group of entities that
manufacture the same product primarily
from recycled material.
``(iv) Use of most recent data.--In
determining whether to designate a sector or
subsector as an eligible industrial sector
under this subparagraph, the Secretary shall
use the most recent data available from the
sources described in paragraph (1)(C), rather
than the data from the years specified in
paragraph (1)(C), to determine the trade
intensity of the sector or subsector, but only
for determining the trade intensity.
``(v) Final action.--The Secretary shall
take final action on a petition described in
this subparagraph not later than 180 days after
the date the completed petition is received by
the Secretary.
``(3) Cessation of qualifying activities.--If, as
determined by the Secretary, an industrial sector or a covered
good within the sector is no longer liable to be designated
under this section, the Commissioner shall cease to apply the
border tax adjustment on the relevant covered goods with effect
from January 1 of the following year.
``SEC. 9914. BORDER TAX ADJUSTMENT RATE.
``(a) Establishment.--The Secretary, with the concurrence of the
Commissioner, shall, no later than the date that is one year after the
date of the enactment of this section, promulgate regulations--
``(1) establishing the products which are liable for, and
requiring payment of, the border tax adjustment rate,
``(2) establishing a general methodology for calculating
the level of the border tax adjustment rate that a domestic
importer of any covered good must submit and the rebate that an
exporter will receive,
``(3) establishing an administrative process whereby any
determination by the Secretary under this subsection may be
appealed,
``(4) exempting from this section products that originate
from--
``(A) any country that the United Nations has
identified as among the least developed of developing
countries, or
``(B) any country that the President has determined
to be responsible for less than 0.5 percent of total
global greenhouse gas emissions and less than 5 percent
of global production in the eligible industrial sector,
``(5) specifying the procedures that the Commissioner will
apply for the declaration and entry of covered goods with
respect to the eligible industrial sector into the customs
territory of the United States, and
``(6) establishing procedures that prevent circumvention of
the carbon tax liability for covered goods that are
manufactured or processed in more than one foreign country.
``(b) Presidential Discretion.--The President may elect not to levy
the border tax adjustment for an eligible industrial sector or for
specific products within that sector if the President determines and
certifies to Congress that the program would not be in the national
interest, economic interest, or environmental interest of the United
States.''.
(b) Effective Date.--The amendments made by this section shall
apply to emissions after the later of December 31, 2023, and the date
that is one year after the date regulations are promulgated under
section 9914 of the Internal Revenue Code of 1986.
TITLE II--DISTRIBUTION OF REVENUES FROM TAXATION OF GREENHOUSE GAS
EMISSIONS
Subtitle A--Rebuilding Infrastructure and Solutions for the Environment
Trust Fund
SEC. 201. ESTABLISHMENT OF THE RISE TRUST FUND.
There is hereby created in the Treasury of the United States a
trust fund to be known as the ``Rebuilding Infrastructure and Solutions
for the Environment Trust Fund'' (hereafter in this Act referred to as
the ``RISE Trust Fund''), consisting of amounts paid into the Treasury
pursuant to subtitle L of the Internal Revenue Code of 1986 (as added
by title I of this Act), and 75 percent of such amounts are hereby
appropriated and transferred to the RISE Trust Fund.
SEC. 202. APPROPRIATIONS FROM THE RISE TRUST FUND.
(a) In General.--Amounts in the RISE Trust Fund for a fiscal year
shall be available, as provided by appropriation Acts, as follows:
(1) 70 percent for each of the fiscal years 2025 through
2034 to the Highway Trust Fund.
(2) 1.5 percent for each of the fiscal years 2025 through
2034 for the weatherization program developed under part A of
title IV of the Energy Conservation and Production Act (42
U.S.C. 6861 et seq.).
(3) 3 percent for each of the fiscal years 2025 through
2034 for assistance for displaced energy workers under section
321.
(4) 2.5 percent for each of the fiscal years 2025 through
2034 to the Airport and Airway Trust Fund under section 9502 of
the Internal Revenue Code of 1986.
(5) 0.1 percent for each of the fiscal years 2025 through
2034 to the Leaking Underground Storage Trust Fund under
section 9508 of the Internal Revenue Code of 1986.
(6) 1.5 percent for each of the fiscal years 2025 through
2034 to the Abandoned Mine Reclamation Fund under section 401
of the Surface Mining Control and Reclamation Act of 1977 (30
U.S.C. 1231).
(7) 4 percent for each of the fiscal years 2025 through
2034 for frequent and chronic coastal flooding mitigation and
adaptation infrastructure projects under section 302.
(8) 1.5 percent for each of the fiscal years 2025 through
2034 for Advanced Research Projects Agency-Energy under section
5012 of the America COMPETES Act (42 U.S.C. 16538).
(9) 0.7 percent for each of the fiscal years 2025 through
2034 for the Carbon Capture Research and Development Program of
the National Energy Technology Laboratory, Office of Fossil
Energy, Department of Energy.
(10) 0.5 percent for each of the fiscal years 2025 through
2034 for assistance for Carbon Storage DOE Fossil Energy
Research, Development, and Demonstration Program Areas, Coal
Program Area (Carbon Storage).
(11) 0.5 percent for each of the fiscal years 2025 through
2034 for assistance to the National Energy Technology
Laboratory of the Office of Fossil Energy for the research and
development of carbon removal technologies.
(12) 0.3 percent for each of the fiscal years 2025 through
2034 to the Secretary of Energy for research and development to
identify and assess novel uses for carbon oxides, including the
conversion of carbon dioxide for commercial and industrial
products, such as chemicals, plastics, building materials,
fuels, cement, products of coal use in power systems or other
applications, or other products with demonstrated market value.
(13) 0.2 percent for each of the fiscal years 2025 through
2034 to the Secretary of Energy to provide grants to entities
constructing common carrier pipeline infrastructure to
transport anthropogenic carbon dioxide for the incremental cost
of providing extra capacity for future carbon dioxide transport
needs.
(14) 0.5 percent for each of the fiscal years 2025 through
2034 for research and development relating to energy storage by
battery through the Office of Electricity, Department of
Energy.
(15) 10 percent for each of the fiscal years 2025 through
2034 for State grants under section 203.
(16) 1 percent for each of the fiscal years 2025 through
2034 to the Reforestation Trust Fund (16 U.S.C. 1606a).
(17) 0.1 percent for each of the fiscal years 2025 through
2034 for assistance through cooperative agreements to decrease
the environmental impact of energy-related activities pursuant
to section 931 of the Energy Policy Act of 2005 (42 U.S.C.
16231).
(18) 1.6 percent for each of the fiscal years 2025 through
2034 for the environmental quality incentives program under
chapter 4 of subtitle D of title XII of the Food Security Act
of 1985 (16 U.S.C. 3839aa et seq.) for payments to producers to
implement practices that promote improvements identified in
subparagraphs (A) and (C) of section 1240B(d)(3) of such Act
(16 U.S.C. 3839aa-2).
(19) 0.5 percent for each of fiscal years 2025 through 2034
for the regional conservation partnership program under section
1271 of the Food Security Act of 1985 (16 U.S.C. 3871) for
eligible activities on eligible land through partnership
agreements with eligible partners and contracts with producers
that address one of the following goals:
(A) Soil health.
(B) Nutrient management.
(C) Forest restoration.
(D) Reduction of methane emissions.
(E) Other related activities that the Secretary
determines will help achieve conservation benefits and
increase carbon sequestration or reduce greenhouse gas
emissions.
(b) Carbon Removal.--For purposes of subsection (a)(11), the term
``carbon removal technologies'' includes:
(1) Direct air capture and storage technologies, which
shall not include any equipment which captures carbon dioxide
which is deliberately released from naturally occurring
subsurface springs or using natural photosynthesis.
(2) Bioenergy with carbon capture and sequestration.
(3) Enhanced geological weathering.
(4) Agricultural and grazing practices.
(5) Forest management and afforestation.
(6) Planned or managed carbon sinks, including natural and
artificial.
(c) Wage Rate Requirements.--Notwithstanding any other provision of
law and in a manner consistent with other provisions in this Act, all
laborers and mechanics employed by contractors and subcontractors on
projects funded directly by or assisted in whole or in part by and
through the Federal Government pursuant to this Act shall be paid wages
at rates not less than those prevailing on projects of a character
similar 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 section,
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.
(d) Conforming Amendments.--
(1) Leaking underground storage tank trust fund.--Section
9508(b) of the Internal Revenue Code of 1986 is amended--
(A) by striking ``and'' at the end of paragraph
(3),
(B) by striking the period at the end of paragraph
(4) and inserting ``, and'', and
(C) by inserting after paragraph (4) the following:
``(5) amounts made available to the Leaking Underground
Storage Tank Trust Fund from the RISE Trust Fund under section
202(a)(5) of the Modernizing America with Rebuilding to
Kickstart the Economy of the Twenty-first Century with a
Historic Infrastructure-Centered Expansion Act.''.
(2) Reforestation trust fund.--
(A) Source of funds.--Section 303(a) of the Act of
October 14, 1980 (16 U.S.C. 1606a(a)) is amended by
striking ``subsection (b)(1)'' and inserting
``paragraph (1) or (4) of subsection (b)''.
(B) Special rule relating to limitation.--Section
303(b) of the Act of October 14, 1980 (16 U.S.C.
1606a(b)) is amended--
(i) in paragraph (2) by inserting ``under
paragraph (1)'' after ``The Secretary of the
Treasury shall transfer'', and
(ii) by adding at the end the following:
``(4) Not later than 9 months after the enactment of the
Modernizing America with Rebuilding to Kickstart the Economy of
the Twenty-first Century with a Historic Infrastructure-
Centered Expansion Act, the Secretary shall transfer to the
Trust Fund the amounts made available under section 202(a)(13)
of such Act.''.
SEC. 203. STATE GRANTS.
(a) In General.--From amounts made available under section
202(a)(15), the Secretary of the Treasury shall make a annual grant to
each State (hereafter in this section referred to as ``State grant'')
to distribute to eligible low-income households in accordance with this
section.
(b) Eligible Low-Income Household.--A household shall be considered
to be an eligible low-income household for purposes of this section
if--
(1) except as provided in subsection (d)(4), the gross
income of the household does not exceed 150 percent of the
poverty line;
(2) the appropriate State agency for the State in which the
household is located determines that the household is
participating in--
(A) the Supplemental Nutrition Assistance Program
authorized by the Food and Nutrition Act of 2008 (7
U.S.C. 2011 et seq.);
(B) the Food Distribution Program on Indian
Reservations authorized by section 4(b) of such Act (7
U.S.C. 2013(b)); or
(C) the program for nutrition assistance in Puerto
Rico or American Samoa under section 19 of such Act (7
U.S.C. 2028);
(3) the household consists of a single individual or a
married couple, and--
(A) receives the subsidy described in section
1860D-14 of the Social Security Act (42 U.S.C. 1395w-
114); or
(B)(i) participates in the program under title
XVIII of the Social Security Act; and
(ii) meets the income requirements described in
section 1860D-14(a)(1) or (a)(2) of the Social Security
Act (42 U.S.C. 1395w-114(a)(1) or (a)(2)); or
(4) the household consists of a single individual or a
married couple, and receives benefits under the supplemental
security income program under title XVI of the Social Security
Act (42 U.S.C. 1381-1383f).
(c) Amount.--The Secretary of the Treasury, in consultation with
the Secretary of Energy and the Administrator of the Environmental
Protection Agency, shall determine the amount of each State grant in
proportion to the percentage of total United States greenhouse gas
emissions attributable to electricity, natural gas, gasoline, diesel,
and fuel ethanol sold in such State during the preceding calendar year.
(d) Rule Relating to Process.--Not later than 1 year after the
enactment of this Act, the Secretary of the Treasury shall establish by
rule a date in each year by which each State shall notify the Secretary
how the State intends to distribute the State Grant. The Secretary
shall transfer the State Grant to each State only upon the State
demonstrating to the Secretary's satisfaction that the State intends to
distribute the State Grant in accordance with this section.
(e) State.--For the purposes of this section, the term ``State''
includes the District of Columbia and any territory of possession of
the United States.
Subtitle B--Certain Manufacturers Excise Taxes
SEC. 211. REPEAL OF FEDERAL MOTOR VEHICLE AND AVIATION FUEL TAXES.
(a) In General.--Subpart A of part III of subchapter A of chapter
32 of the Internal Revenue Code of 1986 is hereby repealed.
(b) Effective Date.--The repeal made by subsection (a) shall apply
to transactions after December 31, 2023.
SEC. 212. MODIFICATIONS OF QUALIFYING ADVANCED COAL PROJECT CREDIT.
(a) Sequestration Requirement for Certain Equipment.--Section
48A(e)(1)(G) of the Internal Revenue Code of 1986 is amended by
inserting ``and 60 percent in the case of an application for a
reallocation of credits under subsection (d)(4) with respect to an
electrical generating unit in existence on October 3, 2008'' after
``under subsection (d)(4)''.
(b) Nameplate Generating Capacity Requirement.--Section
48A(e)(1)(C) of such Code is amended by striking ``400 megawatts'' and
inserting ``200 megawatts''.
(c) Advanced Coal-Based Generation Technology Requirements.--
(1) In general.--Section 48A(f)(1) of such Code is amended
by striking ``generation technology if--'' and all that follows
through ``the unit is designed'' and inserting ``generation
technology if the unit is designed''.
(2) Conforming amendments.--Section 48A(f) is amended--
(A) by striking all that precedes ``the purpose of
this section'' and inserting the following:
``(f) Advanced Coal-Based Generation Technology.--For'';
(B) by striking ``in subparagraph (B)'' in the
second sentence and inserting ``in this subsection'';
and
(C) by striking paragraphs (2) and (3).
(d) Performance Requirements in Case of Best Available Control
Technology.--Section 48A(f) of such Code, as amended by this Act, is
amended by adding at the end the following: ``In the case of a retrofit
of a unit which has undergone a best available control technology
analysis after August 8, 2005, with respect to the removal or emissions
of any pollutant which is SO2 or NOx, the removal or emissions design
level with respect to such pollutant shall be the level determined in
such analysis.''.
(e) Clarification of Reallocation Authority.--Section 48A(d)(4) of
the Internal Revenue Code of 1986 is amended--
(1) in subparagraph (A)--
(A) by striking ``Not later than 6 years after the
date of enactment of this section, the'' and inserting
``The''; and
(B) by inserting ``and every 6 months thereafter
until all credits available under this section have
been allowed'' after ``the date which is 6 years after
the date of enactment of this section'';
(2) in subparagraph (B)--
(A) by striking ``may reallocate credits available
under clauses (i) and (ii) of paragraph (3)(B)'' and
inserting ``shall reallocate credits remaining
available under paragraph (3)'';
(B) by striking ``or'' at the end of clause (i);
and
(C) by striking clause (ii) and inserting the
following:
``(ii) any applicant for certification
which submitted an accepted application has
subsequently failed to satisfy the requirements
under paragraph (2)(D), or
``(iii) any certification made pursuant to
paragraph (2) has been revoked pursuant to
paragraph (2)(E).''; and
(3) in subparagraph (C)--
(A) by striking ``clause (i) or (ii) of paragraph
(3)(B)'' and inserting ``paragraph (3)'';
(B) by striking ``is authorized to'' and inserting
``shall''; and
(C) by striking ``an additional program'' and
inserting ``additional programs''.
(f) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to allocations and
reallocations after the date of the enactment of this Act.
(2) Reallocation.--The amendments made by subsection (e)
shall apply to credits remaining available under section
48A(d)(3) of the Internal Revenue Code of 1986 on the date of
the enactment of this Act.
TITLE III--AMENDMENTS TO OTHER LAWS
Subtitle A--Amendments to Federal Environmental Statutes
SEC. 301. AMENDMENTS TO THE CLEAN AIR ACT.
(a) In General.--Title III of the Clean Air Act (42 U.S.C. 7601) is
amended by adding at the end the following:
``SEC. 330. MORATORIUM AGAINST CERTAIN REGULATIONS BASED ON GREENHOUSE
GAS EFFECTS.
``(a) Fuels.--Unless specifically authorized in section 202, 211,
213, 231, or this section, after a fossil fuel has passed through a
point of taxation as provided in section 9901(d) of the Internal
Revenue Code of 1986, subject to subsection (g), the Administrator
shall not issue or enforce any rule limiting the emission of greenhouse
gases from the combustion of that fuel under this Act (or impose any
requirement on any State to limit such emission) on the basis of the
emission's greenhouse gas effects.
``(b) Emissions.--Unless specifically authorized in section 202,
211, 213, 231, or this section, if emission of any greenhouse gas is
subject to taxation pursuant to section 9902 or 9903 of the Internal
Revenue Code of 1986, the Administrator shall not issue or enforce any
rule limiting such emission under this Act (or impose any requirement
on any State to limit such emission) on the basis of the emission's
greenhouse gas effects.
``(c) Authorized Regulation.--Notwithstanding subsections (a) and
(b), nothing in this section limits the Administrator's authority
pursuant to any other provision of this Act--
``(1) to limit the emission of any greenhouse gas because
of any adverse impact on health or welfare other than its
greenhouse gas effects;
``(2) in limiting emissions as described in paragraph (1),
to consider the collateral benefits of limiting the emissions
because of greenhouse gas effects;
``(3) to limit the emission of any other pollutant that is
not a greenhouse gas that the Administrator determines by rule
has heat-trapping properties; or
``(4) to take any action with respect to any greenhouse gas
other than limiting its emission, including--
``(A) monitoring, reporting, and record-keeping
requirements;
``(B) conducting or supporting investigations; and
``(C) information collection.
``(d) Exception for Certain Greenhouse Gas Emissions.--
Notwithstanding subsections (a) and (b), nothing in this section limits
the Administrator's authority to regulate greenhouse gas emissions
from--
``(1) facilities that--
``(A) are subject to subpart OOOO or OOOOa of part
60 of title 40, Code of Federal Regulations, as in
effect on January 1, 2018, or
``(B) would be subject to either subpart OOOO or
OOOOa if those subparts applied to facilities without
regard to the date on which construction, modification,
or reconstruction commenced, and
``(2) POTW Treatment Plants (as defined in section 403.3(r)
of title 40, Code of Federal Regulations (as in effect on the
date of enactment of this section)).
``(e) Definitions.--In this section, the terms `greenhouse gas' and
`greenhouse gas effects' have the meanings given to those terms in
section 9907 of the Internal Revenue Code of 1986.
``(f) Moratorium Expiration.--Subsections (a) and (b) shall cease
to apply beginning on January 1, 2037.
``(g) Exceptions.--
``(1) 2028.--Notwithstanding subsections (a) and (b) of
this section and section 211(c)(5) of this Act, if the
Administrator determines by March 30, 2029, pursuant to the
report required by section 9901(b)(3)(A) of the Internal
Revenue Code of 1986, that total greenhouse gas emissions from
sources subject to taxation under sections 9901 through 9903 of
such Code during the period of calendar years 2025 through 2028
exceed the emission level specified in section 9901(b)(3)(A) of
such Code for calendar year 2028, then beginning on October 1,
2029, subsections (a) and (b) shall cease to apply.
``(2) 2032.--Notwithstanding subsections (a) and (b) of
this section and section 211(c)(5) of this Act, if the
Administrator determines by March 30, 2033, pursuant to the
report required by section 9901(b)(3)(A) of the Internal
Revenue Code of 1986, that total greenhouse gas emissions from
sources subject to taxation under sections 9901 through 9903 of
such Code during the period of calendar years 2025 through 2032
exceed the emission level specified in section 9901(b)(3)(A) of
such Code for calendar year 2032, then beginning on October 1,
2033, subsections (a) and (b) shall cease to apply.''.
(b) New Motor Vehicles and New Motor Vehicle Engines.--Section
202(b) of the Clean Air Act (42 U.S.C. 7521(b)) is amended--
(1) by redesignating the second paragraph (3) (as
redesignated by section 230(4)(C) of Public Law 101-549 (104
Stat. 2529)) as paragraph (4); and
(2) by adding at the end the following:
``(5) Notwithstanding section 330(a), the Administrator
may--
``(A) limit the emission of any greenhouse gas (as
defined in section 9907 of the Internal Revenue Code of
1986) on the basis of the emission's greenhouse gas
effects (as defined in section 9907 of the Internal
Revenue Code of 1986) from any class or classes of new
motor vehicles or new motor vehicle engines subject to
regulation under subsection (a)(1); and
``(B) grant a waiver under section 209(b)(1) for
standards for the control of greenhouse gas
emissions.''.
(c) Fuels.--Section 211(c) of the Clean Air Act (42 U.S.C. 7545(c))
is amended by adding at the end the following new paragraph:
``(5) Except as required in subsection (o), the
Administrator shall not, pursuant to this subsection, impose on
any manufacturer, processor, or distributor of fuel any
requirement for the purpose of reducing the emission of any
greenhouse gas (as defined in section 9907 of the Internal
Revenue Code of 1986) produced by combustion of the fuel on the
basis of the emission's greenhouse gas effects (as defined in
section 9907 of the Internal Revenue Code of 1986).''.
(d) Nonroad Engines and Vehicles Emissions Standards.--Section 213
of the Clean Air Act (42 U.S.C. 7547) is amended by adding at the end
the following:
``(e) Greenhouse Gas Emissions.--Notwithstanding subsections (a)
and (b) of section 330, the Administrator may limit the emission of any
greenhouse gas (as defined in section 9907 of the Internal Revenue Code
of 1986) on the basis of the emission's greenhouse gas effects (as
defined in section 9907 of the Internal Revenue Code of 1986) from any
nonroad engines and nonroad vehicles subject to regulation under this
section.''.
(e) Aircraft Emission Standards.--Section 231 of the Clean Air Act
(42 U.S.C. 757) is amended by adding at the end the following new
subsection:
``(d) Notwithstanding subsections (a) and (b) of section 330, the
Administrator may limit the emission of any greenhouse gas (as defined
in section 9907 of the Internal Revenue Code of 1986) on the basis of
the emission's greenhouse gas effects (as defined in section 9907 of
the Internal Revenue Code of 1986) from any class or classes of
aircraft engines, so long as any such limitation is not more stringent
than the standards adopted by the International Civil Aviation
Organization.''.
SEC. 302. FREQUENT AND CHRONIC FLOODING MITIGATION AND ADAPTATION
INFRASTRUCTURE PROJECTS.
(a) In General.--The Secretary of Commerce and the Secretary of the
Army (hereinafter referred to as ``the Secretaries''), in consultation
with the Secretary of Homeland Security, may make grants to State and
local governments and federally recognized Indian Tribes for frequent
and chronic flooding mitigation and adaptation infrastructure projects.
(b) Authorized Uses.--Amounts provided as a grant under this
section may be used for any of the following:
(1) Adaptation of existing infrastructure to mitigate
impacts of climate change, including enhancements to both built
and natural environments.
(2) Maintenance and updating of existing flood risk
reduction infrastructure, such as gravity drainage structures,
road elevation, bulkheads, gates, and floodwalls.
(3) Increasing resilience to frequent and chronic flooding,
including (as combined or separate projects)--
(A) the creation of bulkheads, levees, and other
hard infrastructure alone or in combination with
natural infrastructure described in subparagraph (B);
and
(B) habitat restoration work, including dune
enhancement, vegetative restoration, beach
renourishment, coral and oyster reef restoration,
floodplain restoration, and other actions to restore
the function of the natural ecological function and
processes to provide flood risk reduction benefits.
(4) Improvements to conveyance, diversion, removal, and
storage infrastructure to reduce risks caused by frequent and
chronic flooding.
(5) Innovative methods to reduce risks caused by chronic
flooding along street infrastructure systems, including canal
streets, absorbent streets, floodable parks, bioswales, rain
gardens, permeable pavement, and underground cisterns.
(6) Deployment of technologies designed to mitigate power
outages, continue delivery of vital electricity services, and
maintain the flow of power to facilities critical to public
health, safety and welfare, including distributed generation,
energy storage, and microgrids.
(c) Limitation on Project Eligibility.--A project shall not be
eligible for funding under this section if it will have any long-term
negative impact on important ecological functions and habitat or
existing natural protection features and functions.
(d) Priority.--In making grants under this section the Secretaries
shall give priority to the following:
(1) Protecting areas designated as special flood hazard
areas for purposes of the national flood insurance program
under the National Flood Insurance Act of 1968 (42 U.S.C. 4001
et seq.) and the Flood Disaster Protection Act of 1973 (42
U.S.C. 4001 et seq.), hazard areas that incorporate at least 2
feet of additional freeboard, or 3 feet in the case of critical
infrastructure, above base flood elevation.
(2) Protecting critical infrastructure, as that term is
defined in section 1016(e) of the USA PATRIOT Act of 2001 (42
U.S.C. 5195c(e)).
(3) Projects that yield flood risk reduction benefits and
additional environmental, social, and economic benefits.
(e) Joint Application.--Two or more contiguous local governments or
Tribes may jointly apply for, and receive, a grant under this section.
(f) Cost Sharing.--
(1) Limitation on federal share.--The Federal share of the
cost of any activity carried out with a grant under this
section shall not exceed 90 percent of the cost of such
activity.
(2) Non-federal share.--The Secretary shall apply to the
non-Federal share of an activity carried out with a grant under
this section the amount of funds, and the fair market value of
property and services, provided by non-Federal sources and used
for the activity.
(g) Reports.--Each recipient of a grant under this section shall
report annually to the Secretaries on the progress made on the project
carried out with the grant.
SEC. 303. NO PREEMPTION OF STATE LAW.
Nothing in this act shall preempt or supersede, or be interpreted
to preempt or supersede, any State law or regulation.
Subtitle B--Assistance to Displaced Workers in the Energy Sector
SEC. 321. ASSISTANCE TO DISPLACED WORKERS IN THE ENERGY SECTOR.
(a) In General.--For a period of 10 years after the enactment of
the Modernizing America with Rebuilding to Kickstart the Economy of the
Twenty-first Century with a Historic Infrastructure-Centered Expansion
Act, from amounts made available under section 202 of this Act, the
Secretary of Labor shall carry out a program to assist workers in the
energy sector.
(b) Workers in the Energy Sector.--For purposes of this section,
the term ``workers in the energy sector'' means--
(1) workers in fossil energy sectors that may be displaced
as a result of the enactment of this Act; and
(2) workers in the nuclear power sector that work at a
nuclear power plant--
(A) that ceased operation in the two years
preceding the date of enactment of this Act; or
(B) the owner of which announced prior to the date
of enactment of this Act its intent to cease the
operation of the plant at a future date.
(c) Eligible Activities.--Such assistance may take the form of the
following:
(1) Worker retraining.
(2) Relocation expenses for those who move to find new
employment.
(3) Early retirement.
(4) Health benefits.
(5) Block grants to affected communities for economic
redevelopment and infrastructure investments.
(6) Transfers to the trustees of the 1974 United Mine
Workers of America Pension Plan to pay benefits required under
that plan. No such transfer shall be made in a first fiscal
year beginning after a plan year for which the funded
percentage (as defined in section 432(j)(2) of the Internal
Revenue Code of 1986) of the 1974 United Mine Workers of
America Pension Plan is at least 100 percent.
TITLE IV--NATIONAL CLIMATE COMMISSION
SEC. 401. ESTABLISHMENT OF COMMISSION.
(a) Establishment.--There is established a bipartisan commission to
be known as the ``National Climate Commission'' (in this title referred
to as the ``Commission'').
(b) Membership.--
(1) Composition.--The Commission shall be composed of 10
members, appointed as follows:
(A) One cochair appointed by the President.
(B) One cochair appointed by the majority or
minority leader of the Senate, whoever is of the
opposite party as the President, in consultation with
the Speaker or minority leader of the House of
Representatives, whoever is of the opposite party as
the President.
(C) Two members appointed by the majority leader of
the Senate.
(D) Two members appointed by the minority leader of
the Senate.
(E) Two members appointed by the Speaker of the
House of Representatives.
(F) Two members appointed by the minority leader of
the House of Representatives.
(2) Qualifications.--
(A) In general.--To be considered for membership on
the Commission, an individual shall demonstrate
expertise in the economy, energy, climate, or public
health, and be a representative from--
(i) an academic, scientific, or other non-
governmental organization; or
(ii) an industry organization or small
business in a relevant sector such as--
(I) energy supply and transmission,
including fossil fuels and renewable
energy;
(II) energy exploration and
production, including fossil fuels and
renewable energy;
(III) solid waste and wastewater;
(IV) transportation;
(V) chemical manufacturing;
(VI) agriculture;
(VII) construction; and
(VIII) forestry.
(B) Certain persons ineligible.--No employee,
owner, director, or other person affiliated with an
entity that has donated funding for the activities of
the Commission pursuant to section 404(a) may be
appointed to the Commission.
(C) Appointment deadline.--Members of the
Commission shall be appointed not later than 180 days
after the date of the enactment of this Act.
(D) Period of appointment.--Members of the
Commission shall be appointed for a term of 6 years,
which may be renewed.
(E) Vacancy.--A vacancy in the Commission shall not
affect the powers of the Commission and shall be filled
in the same manner in which the original appointment
was made.
(3) Compensation of employees.--Each member of the
Commission may be compensated at a rate not to exceed the daily
equivalent of the annual rate of basic pay in effect for a
position at level IV of the Executive Schedule under section
5315 of title 5, United States Code, for each day during which
that member is engaged in the performance of the duties of the
Commission.
(4) Travel expenses.--Each member shall receive travel
expenses to perform the duties of the Commission, including per
diem in lieu of subsistence, at rates authorized under
subchapter I of chapter 57 of title 5, United States Code.
(c) Meetings.--
(1) Initial meeting.--The Commission shall hold its first
meeting not later than 2 years after the date of enactment of
this Act.
(2) Meeting.--The Commission shall meet not less than once
every 3 years.
(3) Quorum.--Six members of the Commission shall constitute
a quorum.
SEC. 402. DUTIES OF COMMISSION.
(a) Goals.--The Commission shall set goals for emissions reduction
to be achieved by 2029 and every five years thereafter through 2054,
using such estimated rates of reduction as the Commission determines
reflect the latest scientific findings of what is necessary to avoid
the serious human health and environmental consequences of climate
change.
(b) Review.--The Commission shall assess the effect of existing
policies and programs of the Federal government with the aim of
achieving the emissions reduction goals in subsection (a).
(c) Report.--Beginning in 2030, and every 5 years thereafter, the
Commission shall issue a report to the President, Congress, and the
States, which shall include--
(1) an analysis of whether the policies and programs
assessed under subsection (b) are on pace to achieving the
emissions reduction goals set under subsection (a);
(2) recommendations, if any, for reducing greenhouse gas
emissions; and
(3) a minority report with dissenting views, if applicable.
SEC. 403. POWERS OF COMMISSION.
(a) Obtaining Official Data.--
(1) In general.--The Commission may secure directly from
any executive department, bureau, agency, board, commission,
office, independent establishment, or instrumentality of the
Government, unrestricted information, suggestions, estimates,
and statistics for the purpose of carrying out this title. Each
department, bureau, agency, board, commission, office,
independent establishment, or instrumentality shall, to the
extent authorized by provisions of law other than this section,
furnish such unrestricted information, suggestions, estimates,
and statistics directly to the Commission, upon request made by
a cochair or any member designated by a majority of the
Commission.
(2) Receipt, handling, storage, and dissemination.--
Unrestricted information provided to the Commission under
paragraph (1) shall be received, handled, stored, and
disseminated only by members and staff of the Commission,
consistent with any applicable statutes, regulations, or
Executive orders.
(b) Assistance From Federal Agencies.--
(1) General services administration.--The Administrator of
General Services shall provide to the Commission, on a
reimbursable basis, administrative support and other services
for the performance of the functions of the Commission.
(2) Other departments and agencies.--In addition to the
assistance prescribed in paragraph (1), departments and
agencies of the United States may provide to the Commission
such services, funds, facilities, staff, and other support
services as they may determine advisable and as may be
authorized by law.
(c) Postal Services.--The Commission may use the United States mail
in the same manner and under the same conditions as other departments
and agencies of the United States.
SEC. 404. FUNDING FOR THE ACTIVITIES OF THE COMMISSION.
(a) Private Sector Donations.--The Secretary of Commerce may
collect private sector donations for the purpose of carrying out this
title, to be deposited in the Treasury and made available consistent
with the authorization of appropriations in subsection (c).
(b) Transparency.--The amounts and sources of all funds donated
under subsection (a) and all spending by the Commission shall be made
publicly available on the website of the Commission.
(c) Authorization of Appropriations.--There is authorized to be
appropriated to the Commission, for the purpose of carrying out the
activities of this title, $5,000,000 for each of fiscal years 2025
through 2034.
SEC. 405. STAFF OF THE COMMISSION.
(a) Detail of Government Employees.--Any Federal Government
employee may be detailed to the Commission without reimbursement from
the Commission, and such detail shall be without interruption or loss
of civil service status or privilege.
(b) Expert and Consultant Services.--The Commission may procure the
services of experts and consultants in accordance with section 3109 of
title 5, United States Code, at rates not to exceed the daily
equivalent of the annual rate of basic pay in effect for a position at
level IV of the Executive Schedule under section 5315 of title 5,
United States Code.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Ways and Means, and in addition to the Committees on Energy and Commerce, Natural Resources, Education and the Workforce, Transportation and Infrastructure, Science, Space, and Technology, and Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committees on Energy and Commerce, Natural Resources, Education and the Workforce, Transportation and Infrastructure, Science, Space, and Technology, and Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committees on Energy and Commerce, Natural Resources, Education and the Workforce, Transportation and Infrastructure, Science, Space, and Technology, and Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committees on Energy and Commerce, Natural Resources, Education and the Workforce, Transportation and Infrastructure, Science, Space, and Technology, and Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committees on Energy and Commerce, Natural Resources, Education and the Workforce, Transportation and Infrastructure, Science, Space, and Technology, and Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
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Referred to the Committee on Ways and Means, and in addition to the Committees on Energy and Commerce, Natural Resources, Education and the Workforce, Transportation and Infrastructure, Science, Space, and Technology, and Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committees on Energy and Commerce, Natural Resources, Education and the Workforce, Transportation and Infrastructure, Science, Space, and Technology, and Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Environment, Manufacturing, and Critical Materials.
Referred to the Subcommittee on Highways and Transit.
Referred to the Subcommittee on Commodity Markets, Digital Assets, and Rural Development.