,i #aacth ,,congress #b;d ,session ,h4 ,r4 #dged ,,in ,,the ,,house ,,of ,,representatives ,may #bh1 #bjad ,mr4 ,mc,dermott introduced the following bill2 which was referred to the ,committee on ,ways and ,means1 and in addition to the ,committee on ,energy and ,commerce1 for a period to be subsequently determined by the ,speaker1 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 #aihf to reduce greenhouse gas emissions by requiring a ,federal emission permit for the sale or use of covered substances and to return funds to the ,american people4 #a4 ,short title ,this ,act may be cited as the ,managed ,carbon ,price ,act of #bjad4 #b4 ,greenhouse ,gas ,emission ,substances 7a7 ,in general ,the ,internal ,revenue ,code of #aihf is amended by adding at the end the following3 ,l ,greenhouse ,gas ,emission ,substances ,sec4 #iija4 ,condition precedent to sale or use of greenhouse gas emission substance4 ,sec4 #iijb4 ,federal emission permit4 ,sec4 #iijc4 ,definitions4 ,sec4 #iijd4 ,information reporting requirements4 ,sec4 #iije4 ,regulations4 #iija4 ,condition precedent to sale or use of greenhouse gas emission substance 7a7 ,in general ,no covered person may sell any greenhouse gas emission substance except pursuant to a ,federal emission permit for each carbon dioxide equivalent that the ,administrator of the ,environmental ,protection ,agency determines would be emitted from the combustion or other greenhouse gas emitting use of such substance4 7b7 ,covered person ,for purposes of this subtitle1 the term covered person means-- 7#a7 in the case of coal 7including lignite and peat7 produced from a mine in the ,united ,states1 the producer of such coal1 7#b7 in the case of crude oil or petroleum products received at a ,united ,states refinery1 the operator of the ,united ,states refinery1 7#c7 in the case of natural gas1 the first seller of such natural gas1 7#d7 in the case of any greenhouse gas emission substance not described in paragraph 7#a71 7#b71 or 7#c7 produced in the ,united ,states1 the producer of such substance1 and 7#e7 in the case of any greenhouse gas emission substance entered into the ,united ,states for consumption1 use1 or warehousing1 the person entering such substance for consumption1 use1 or warehousing4 7c7 ,use treated as sale 7#a7 ,in general ,if any person uses a greenhouse gas emission substance before the first retail sale of such substance1 then such person shall be liable for the purchase of a ,federal emission permit under section #iijb in the same manner as if such substance were sold at retail on the date of such use by such person pursuant to a ,federal emission permit4 7#b7 ,exemption for use in further manufacture ,paragraph 7#a7 shall not apply to use of a greenhouse gas emission substance as material in the manufacture or production of1 or as a component part of1 another article to be manufactured or produced by such person4 7d7 ,exceptions ,subsection 7a7 shall not apply to-- 7#a7 a greenhouse gas emission substance to be used for noncombustion agricultural purposes1 or 7#b7 a greenhouse gas emission substance with respect to which a ,federal emission permit has previously been purchased4 7e7 ,importation of ,carbon ,intensive ,goods 7#a7 ,greenhouse gas emission permit equivalency fees ,the ,secretary shall impose a greenhouse gas emission permit equivalency fee on imports of carbon intensive goods that shall be equivalent to the cost that domestic producers of comparable carbon intensive goods incur as a result of-- 7,a7 permit fees paid by covered persons for greenhouse gas emission substances under this section1 and 7,b7 greenhouse gas emission permit equivalency fees paid by importers of carbon intensive goods used in the production of the comparable carbon intensive goods in question4 7#b7 ,expiration ,paragraph 7#a7 and section #fdcc7;b7 shall cease to have effect at such time as and to the extent that-- 7,a7 an international agreement requiring countries that emit greenhouse gases and produce carbon intensive goods for international markets to adopt equivalent measures comes into effect1 and 7,b7 the country of export has implemented equivalent measures1 and the actions provided for by paragraph 7#a7 and section #fdcc7;b7 are no longer appropriate4 #iijb4 ,federal emission permit 7a7 ,in general ,the ,secretary shall1 subject to subsection 7d71 issue ,federal emission permits1 as provided for in this subtitle4 ,a ,federal emission permit may only be obtained upon making payment to the ,secretary4 7b7 ,rules relating to permits ,for purposes of this subtitle-- 7#a7 ,each ,federal emission permit shall be denominated in one-quarter carbon dioxide equivalents4 7#b7 ,a ,federal emission permit may only be purchased within fourteen calendar days before or after a greenhouse gas emission substance is produced or entered into the ,united ,states1 as the case may be4 7#c7 ,except as provided in subsection 7a71 a ,federal emission permit may not be sold1 exchanged1 or otherwise transferred4 7c7 ,permit ,price 7#a7 ,in general ,the ,secretary1 after consultation with the ,administrator of the ,environmental ,protection ,agency and the ,secretary of ,energy1 shall establish the price of obtaining a ,federal emission permit for a calendar year based on a determination of the dollar amount necessary to meet the emissions reductions targets specified in subsection 7d74 7#b7 #e-year price schedule 7,a7 ,in general ,not later than ,january #a1 #bjaf1 the ,secretary shall publish a schedule of the prices determined under paragraph 7#a7 for obtaining a ,federal emission permit during each of the five years from #bjag to #bjba4 ,the ,secretary shall publish the price for obtaining a ,federal emission permit in each year after #bjbj no later than five years before ,january #a of the applicable year4 7,b7 ,reduction in price if target reductions being exceeded ,if the ,secretary determines-- 7i7 that greenhouse gas emissions are being reduced at a rate that exceeds the reduction expected in national greenhouse gas emissions for the year1 and 7ii7 that the ,federal permit price can be reduced while still attaining the national greenhouse gas emission target reductions specified in subsection 7d7 for the year1 the ,secretary may1 at any time before the beginning of the year1 reduce the ,federal permit price for that year4 7#c7 ,increase in price if target reductions not being met ,if the ,secretary determines that the reduction of greenhouse gas emissions is failing to meet the target reductions specified in subsection 7d7 for a year in such period1 the ,secretary may increase the ,federal permit price for permits no earlier than #b years after the year for which the determination is made4 7#d7 ,maximum and ,minimum ,price 7,a7 ,in general ,not later than ,january #a1 #bjbc1 and every #aj years thereafter1 the ,secretary1 after consultation with the ,administrator of the ,environmental ,protection ,agency and the ,secretary of ,energy1 shall publish a #aj-year schedule of the minimum and maximum prices for ,federal emissions permits4 7,b7 ,prices specified ,the maximum and minimum price for a ,federal emission permit issued by the ,secretary in a year may not be below the minimum price or the maximum price for the corresponding year specified in the following table3 ,year3,minimum ,price is3,maximum ,price is3 #bjaef4beah4ge #bjafah4geca4be #bjagca4bedc4ge #bjahdc4geef4be #bjaief4befh4ge #bjbjfh4gehb4be #bjbaha4beic4ge #bjbbic4geajf4be #bjbcajf4beaah4ge #bjbdaah4geaca4be4 7,c7 ,adjustment for inflation ,in the case of any calendar year beginning after #bjae1 each dollar amount contained in the table in subparagraph 7,b7 shall be increased by an amount equal to-- 7i7 such dollar amount1 multiplied by 7ii7 the cost of living adjustment determined under section #a7;f77#c7 for the calendar year1 determined by substituting calendar year #bjad for calendar year #aiib in subparagraph 7,b7 thereof4 7d7 ,national ,limitation 7#a7 ,targets ,for purposes of this section-- 7,a7 #bjae through #bjai ,the average emissions for the period #bjae through #bjai shall be no more than the carbon dioxide equivalents emitted in the ,united ,states in #bjje4 7,b7 #bjbe through #bjbi ,the average emissions for the period #bjbe through #bjbi shall be no more than #gj percent of the carbon dioxide equivalents emitted in the ,united ,states in #bjje4 7,c7 #bjce through #bjci ,the average emissions for the period #bjce through #bjci shall be no more than #ej percent of the carbon dioxide equivalents emitted in the ,united ,states in #bjje4 7,d7 #bjde through #bjdi ,the average emissions for the period #bjde through #bjdi shall be no more than #cj percent of the carbon dioxide equivalents emitted in the ,united ,states in #bjje4 7,e7 #bjee through #bjei ,the average emissions for the period #bjee through #bjei shall be no more than #bj percent of the carbon dioxide equivalents emitted in the ,united ,states in #bjje4 7#b7 ,determination of #bjje levels ,for purposes of subparagraph 7,a71 the number of metric tons of carbon dioxide equivalents emitted in the ,united ,states in #bjje shall be the number determined under section #afje7;a7 of the ,energy ,policy ,act of #aiib and published by the ,energy ,information ,administration4 7e7 ,report 7#a7 ,in general ,not later than the second ,march #a after the date of the enactment of the ,managed ,carbon ,price ,act of #bjad1 and annually thereafter1 the ,secretary shall publish a report describing-- 7,a7 the extent to which the ,united ,states greenhouse gas emission limitations specified under subsection 7d7 are being achieved1 7,b7 the ,united ,states greenhouse gas emission permits sold during the previous calendar year and the impact of the number of such permits on greenhouse gas emissions in the ,united ,states1 and 7,c7 the total greenhouse gas emissions worldwide for the previous calendar year in relation to such emissions for #bjje4 7#b7 ,report details ,such report shall include-- 7,a7 an explanation of the methodology and assumptions the ,secretary has used in establishing prices under this section1 and 7,b7 an estimation1 or range of estimations1 of the price of permits for the #aj-year period following the current prices published under subsection 7c74 #iijc4 ,definitions 7a7 ,in general ,for purposes of this subtitle-- 7#a7 ,administrator ,the term ,administrator means the ,administrator of the ,environmental ,protection ,agency4 7#b7 ,carbon dioxide equivalent ,the term carbon dioxide equivalent means1 for each greenhouse gas emission substance1 the quantity of the greenhouse gas emission substance that the ,administrator determines makes the same contribution to global warming as #a metric ton of carbon dioxide4 7#c7 ,greenhouse gas emission substance ,the term greenhouse gas emission substance means-- 7,a7 coal 7including lignite1 peat1 and derivatives of coal71 to be used as a combustion fuel1 7,b7 petroleum and any petroleum product1 to be used as a combustion fuel1 7,c7 natural gas 7including the gasses released as a result of flaring or venting such natural gas71 7,d7 methane1 7,e7 nitrous oxide1 7,f7 sulfur hexafluoride1 7,g7 a perfluorocarbon1 7,h7 a hydrofluorocarbon1 and 7,i7 any other substance that is determined by the ,administrator to contribute to global warming to a nonnegligible degree4 7#d7 ,federal emission permit ,the term ,federal emission permit means a permit required under section #iija4 7#e7 ,carbon intensive good ,the term carbon intensive good means-- 7,a7 7i7 iron1 steel1 any steel mill product 7including pipe and tube71 aluminum1 cement1 glass 7including flat1 container1 and specialty glass and fiberglass71 pulp1 paper1 chemicals1 and industrial ceramics1 and 7ii7 any other manufactured product that the ,secretary determines-- 7,i7 is sold for purposes of further manufacture1 and 7,,ii7 generates1 in the course of the manufacture of the product1 direct and indirect greenhouse gas emissions that are comparable 7on an emissions per dollar of output basis7 to emissions generated in the manufacture or production of a good identified in clause 7i71 and 7,b7 a manufactured item in which one or more goods identified under subparagraph 7,a7 are inputs and the cost of production of which in the ,united ,states the ,secretary determines is significantly increased by this subtitle4 7#f7 ,petroleum product ,the term petroleum product has the meaning given such term in section #dfab7;a77#c74 7b7 ,identification of carbon intensive goods ,the determinations by the ,secretary required by subsection 7a77#e7 shall be by rule4 7c7 ,publication of schedule ,not later than one year after the date of the enactment of the ,managed ,carbon ,price ,act of #bjad1 the ,administrator1 in consultation with the ,secretary and the ,secretary of ,energy1 shall publish a schedule listing each greenhouse gas emission substance and the quantity of each substance required to make #a metric ton of carbon dioxide4 ,the ,administrator1 in consultation with the ,secretary and the ,secretary of ,energy1 may update such schedule from time to time4 #iijd4 ,information reporting requirements ,secretary may solicit information from covered persons regarding estimated future use of greenhouse gas emissions substances4 #iije4 ,regulations ,the ,secretary shall issue such regulations as may be necessary or appropriate to carry out this subtitle1 including regulations relating to the timely and efficient issuance of permits and collection of payments for such permits4 4 7b7 ,refund of ,federal emission permit fee ,subchapter ,b of chapter #fe of such ,code is amended by adding at the end the following new section3 #fdcc4 ,refunds of ,federal emission permit fee for certain uses 7a7 ,in general ,if a ,federal emission permit has been acquired with respect to a greenhouse gas emission substance pursuant to section #iijb and the acquirer of such permit uses such substance in a manner that will make a negligible or no contribution to global warming1 as determined by the ,secretary in consultation with the ,administrator of the ,environmental ,protection ,agency1 the ,secretary shall pay 7without interest7 to the acquirer of such substance pursuant to such permit an amount equal to the amount paid for the applicable ,federal emission permit4 7b7 ,payments to exporters ,the ,secretary shall pay 7without interest7 to the exporter of a carbon intensive good 7as defined in section #iijc7e77 produced in the ,united ,states an amount equal to the cost that domestic producers of such carbon intensive goods incur as a result of-- 7#a7 the dollar amount paid by covered persons for ,federal emission permits for greenhouse gas emission substances under this section #iijb1 and 7#b7 greenhouse gas emission permit equivalency fees paid under section #iija7;e7 by importers of carbon intensive goods used in the production of the comparable carbon intensive goods in question4 4 7c7 ,failure ,to obtain permit ,chapter #ch of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subchapter3 ,e ,greenhouse ,gas ,emission ,substances ,sec4 #dfia4 ,greenhouse gas emission substances4 #dfia4 ,greenhouse gas emission substances 7a7 ,imposition of tax ,there is hereby imposed on any covered person who fails to obtain a ,federal emission permit pursuant to subtitle ,l a tax equal to #ajj percent of the dollar amount of the fee that would have been charged for such permit but for such failure4 7b7 ,covered person ,the term covered person has the meaning given such term by section #iija7;b74 7c7 ,federal emission permit ,the term ,federal emission permit means a permit required under section #iija4 7d7 ,coordination ,the tax imposed under this section is in addition to the fee imposed under subtitle ,l4 4 7d7 ,establishment of ,energy and ,economic ,security ,trust ,fund 7#a7 ,finding ,the ,congress finds that revenue generated from the sale of ,federal emission permits must be recycled into the ,american economy-- 7,a7 to facilitate economic growth and clean energy production1 and 7,b7 to protect the economic security of ,american families and communities4 7#b7 ,establishment of trust fund ,subchapter ,a of chapter #ih of such ,code 7relating to trust fund code7 is amended by adding at the end the following3 #ieab4 ,energy and ,economic ,security ,trust ,fund 7a7 ,creation of ,trust ,fund ,there is established in the ,treasury of the ,united ,states a trust fund to be known as the ,energy and ,economic ,security ,trust ,fund 7referred to in this section as the ,trust ,fund71 consisting of such amounts as may be appropriated or credited to the ,trust ,fund as provided in this section or section #ifjb7;b74 7b7 ,transfers to ,trust ,fund ,there is hereby appropriated to the ,trust ,fund an amount equivalent to the amounts received in the ,treasury pursuant to subtitle ,l4 7c7 ,expenditures from ,trust ,fund 7#a7 ,in general ,the ,secretary shall pay monthly from the ,trust ,fund the dividend amount to each taxpayer4 7#b7 ,dividend amount ,for purposes of paragraph 7#a71 the term dividend amount means the sum of-- 7,a7 7i7 in the case of the taxpayer filing a joint return1 the individual share for the husband and the individual share for the wife1 and 7ii7 in the case of a taxpayer other than a taxpayer described in subparagraph 7,a71 the individual share1 and 7,b7 in the case of an individual who is a dependent 7as defined in section #aeb7 of the taxpayer1 of the individual share4 ,for purposes of subparagraph 7,b71 not more than #b dependents may be taken into account for each taxpayer4 7#c7 ,individual share ,for purposes of this subsection1 the term individual share means the amount determined by the ,secretary by dividing the total amount deposited in the ,trust ,fund for the month by the total number of individual shares payable at the end of such month4 7#d7 ,limitation ,for purposes of this subsection-- 7,a7 ,in general ,no amount is payable under this subsection with respect to an individual unless the individual is a qualified individual4 7,b7 ,qualified individual ,the term qualified individual means an individual who is a lawful resident of the ,united ,states on the date of such payment4 ,for purposes of ensuring that payments are made under this subsection to all qualified individuals1 the ,secretary shall consult with such other ,federal and ,state officials as the ,secretary determines necessary or appropriate4 7,c7 ,united ,states ,for purposes of subparagraph 7,b71 the ,united ,states includes the ,district of ,columbia1 the ,commonwealth of ,puerto ,rico1 the ,virgin ,islands1 ,guam1 ,american ,samoa1 and the ,commonwealth of the ,northern ,mariana ,islands4 4 7e7 ,conforming and clerical amendments 7#a7 ,the table of subchapters for chapter #ch of such ,code is amended by adding at the end the following new item3 ,subchapter ,e4 ,greenhouse ,gas ,emission ,substances 4 7#b7 ,the table of subtitles for the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new item3 ,subtitle ,l4 ,greenhouse ,gas ,emission ,substances 4 7#c7 ,the table of sections for subchapter ,b of chapter #fe of such ,code is amended by adding at the end the following new item3 ,sec4 #fdcc4 ,refunds of ,federal emission permit fee for certain uses4 4 7#d7 ,the table of sections for subchapter ,a of chapter #ih of such ,code is amended by adding at the end the following3 ,sec4 #ieab4 ,energy and ,economic ,security ,trust ,fund4 4 7f7 ,effective date ,the amendments made by this section shall apply with respect to the sale of any greenhouse gas emission substance after ,december #ca1 #bjad4