,i #aacth ,,congress #b;d ,session ,h4 ,r4 #ecjg ,,in ,,the ,,house ,,of ,,representatives ,july #ca1 #bjad ,mr4 ,larson of ,connecticut introduced the following bill2 which was referred to the ,committee on ,ways and ,means1 and in addition to the ,committee on ,foreign ,affairs1 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 carbon pollution in the ,united ,states1 invest in the ,nation's infrastructure1 and cut taxes for working ,americans4 #a4 ,short title ,this ,act may be cited as the ,america's ,energy ,security ,trust ,fund ,act of #bjad4 #b4 ,tax on carbon dioxide content of certain substances 7a7 ,in general ,chapter #ch of the ,internal ,revenue ,code of #aihf 7relating to environmental taxes7 is amended by adding at the end thereof the following new subchapter3 ,e ,tax on carbon dioxide content of certain substances ,sec4 #dfia4 ,imposition of tax4 ,sec4 #dfib4 ,refunds or credits4 ,sec4 #dfic4 ,border adjustments4 ,sec4 #dfid4 ,definitions and special rules4 #dfia4 ,imposition of tax 7a7 ,in general ,there is hereby imposed a tax on any taxable carbon substance sold by the manufacturer1 producer1 or importer thereof4 7b7 ,amount of tax 7#a7 ,in general ,the amount of tax imposed by subsection 7a7 on any taxable carbon substance shall be the applicable amount per ton of carbon dioxide content of such substance1 as determined by the ,secretary in consultation with the ,secretary of ,energy4 7#b7 ,fractional part of ton ,in the case of a fraction of a ton1 the tax imposed by subsection 7a7 shall be the same fraction of the amount of such tax imposed on a whole ton4 7#c7 ,applicable amount ,for purposes of paragraph 7#a7-- 7,a7 ,calendar year #bjaf ,the applicable amount for calender year #bjaf is #aj4 7,b7 ,years after #bjaf ,for a calendar year after #bjaf1 the applicable amount is the sum of-- 7i7 the amount in effect under this paragraph for the preceding calendar year1 plus 7ii7 #aj4 7c7 ,substance taxed only once ,no tax shall be imposed by subsection 7a7 with respect to a taxable carbon substance if the person who would be liable for such tax establishes that a prior tax imposed by such section has been imposed with respect to such product4 7d7 ,exemption for exports 7#a7 ,tax-free sales 7,a7 ,in general ,no tax shall be imposed under subsection 7a7 on the sale by the manufacturer or producer of any taxable carbon substance for export or for resale by the purchaser to a second purchaser for export4 7,b7 ,proof of export required ,rules similar to the rules of section #dbba7;b7 shall apply for purposes of subparagraph 7,a74 7#b7 ,credit or refund where tax paid 7,a7 ,in general ,except as provided in subparagraph 7,b71 if-- 7i7 tax under subsection 7a7 was paid with respect to any taxable carbon substance1 and 7ii7 7,i7 such substance was exported by any person1 or 7,,ii7 such substance was used as a material in the manufacture or production of a taxable carbon substance which was exported by any person and which1 at the time of export1 was a taxable carbon substance1 credit or refund 7without interest7 of such tax shall be allowed or made to the person who paid such tax4 7,b7 ,condition to allowance ,no credit or refund shall be allowed or made under subparagraph 7,a7 unless the person who paid the tax establishes that he-- 7i7 has repaid or agreed to repay the amount of the tax to the person who exported the taxable carbon substance1 or 7ii7 has obtained the written consent of such exporter to the allowance of the credit or the making of the refund4 7,c7 ,refunds directly to exporter ,the ,secretary shall provide1 in regulations1 the circumstances under which a credit or refund 7without interest7 of the tax under subsection 7a7 shall be allowed or made to the person who exported the taxable carbon substance1 where-- 7i7 the person who paid the tax waives his claim to the amount of such credit or refund1 and 7ii7 the person exporting the taxable carbon substance provides such information as the ,secretary may require in such regulations4 #dfib4 ,refunds or credits 7a7 ,sequestered carbon ,under regulations prescribed by the ,secretary1 if-- 7#a7 a person uses a taxable carbon substance as a feedstock so that the carbon associated with such substance will not be emitted1 or 7#b7 a person captures and sequesters the carbon in a taxable carbon substance1 then an amount equal to the amount of tax in effect under section #dfia7;b7 with respect to such substance for the calendar year in which such use begins shall be allowed as a credit or refund 7without interest7 to such person in the same manner as if it were an overpayment of tax imposed by section #dfia4 7b7 ,previously taxed carbon substances used ,to make another taxable carbon substance ,under regulations prescribed by the ,secretary1 if-- 7#a7 a tax under section #dfia was paid with respect to any taxable carbon substance1 and 7#b7 such substance was used by any person in the manufacture or production of any other substance which is a taxable carbon substance1 then an amount equal to the tax so paid shall be allowed as a credit or refund 7without interest7 to such person in the same manner as if it were an overpayment of tax imposed by subsection 7a74 ,in any case to which this paragraph applies1 the amount of any such credit or refund shall not exceed the amount of tax imposed by subsection 7a7 on the other taxable fuel manufactured or produced 7or which would have been imposed by such subsection on such other fuel but for subsection 7c774 #dfic4 ,border adjustments 7a7 ,imports ,the ,secretary shall impose a carbon 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 taxes paid by manufacturers1 producers1 and importers of taxable carbon substances under this section1 and 7#b7 carbon equivalency fees paid by importers of carbon intensive goods used in the production of the comparable carbon intensive goods in question4 7b7 ,exports ,notwithstanding the limitations of section #dfib1 the ,secretary shall allow as a credit or refund 7without interest7 to the exporter of a carbon-intensive good produced in the ,united ,states in the same manner as if it were an overpayment of tax imposed by section #dfia an amount equivalent to the cost that domestic producers of such carbon intensive goods incur as a result of-- 7#a7 taxes paid by manufacturers1 producers1 and importers of taxable carbon substances under this section1 and 7#b7 carbon equivalency fees paid by importers of carbon intensive goods used in the production of the comparable carbon intensive goods in question4 7c7 ,expiration ,this section shall cease to have effect at such time as and to the extent that-- 7#a7 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 or 7,b7 the country of export has implemented equivalent measures1 and 7#b7 the actions provided for by subsections 7a7 and 7b7 are no longer appropriate4 #dfid4 ,definitions and special rules 7a7 ,definitions ,for purposes of this subchapter-- 7#a7 ,taxable carbon substance ,the term taxable carbon substance means-- 7,a7 coal 7including lignite and peat71 7,b7 petroleum and any petroleum product 7as defined in section #dfab7;a77#c771 and 7,c7 natural gas1 which is extracted1 manufactured1 or produced in the ,united ,states or entered into the ,united ,states for consumption1 use1 or warehousing4 7#b7 ,united ,states ,the term ,united ,states has the meaning given such term by section #dfab7;a77#d74 7#c7 ,importer ,the term importer means the person entering the taxable carbon substance for consumption1 use1 or warehousing4 7#d7 ,ton ,the term ton means metric tons4 ,in the case of any taxable carbon substance which is a gas1 the term ton means the amount of such gas in cubic feet which is the equivalent of a metric ton on a molecular weight basis4 7#e7 ,carbon-intensive good ,the term carbon-intensive good means a good that 7as identified by the ,secretary by rule7-- 7,a7 is a primary product1 or 7,b7 is a manufactured item in which one or more primary products are inputs and the cost of production of which in the ,united ,states is significantly increased by this subchapter4 7#f7 ,primary product ,the term primary product means-- 7,a7 iron1 steel1 steel mill products 7including pipe and tube71 aluminum1 cement1 glass 7including flat1 container1 and specialty glass and fiberglass71 pulp1 paper1 chemicals1 or industrial ceramics1 and 7,b7 any other manufactured product that the ,secretary determines-- 7i7 is sold for purposes of further manufacture1 and 7ii7 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 primary products identified in subparagraph 7,a74 7#g7 ,equivalent measure ,the term equivalent measure means a tax or other regulatory requirement that imposes a cost on manufacturers of carbon intensive goods located outside the ,united ,states approximately equal to the cost imposed by section #dfia on manufacturers of comparable carbon intensive goods located in the ,united ,states4 7b7 ,use treated as sale ,if any person manufactures1 produces1 or imports any taxable carbon substance and uses such substance1 then such person shall be liable for tax under section #dfia in the same manner as if such substance were sold by such person4 7c7 ,special rules for inventory exchanges 7#a7 ,in general ,except as provided in this paragraph1 in any case in which a manufacturer1 producer1 or importer of a taxable carbon substance exchanges such substance as part of an inventory exchange with another person-- 7,a7 such exchange shall not be treated as a sale1 and 7,b7 such other person shall1 for purposes of section #dfia1 be treated as the manufacturer1 producer1 or importer of such substance4 7#b7 ,registration requirement ,paragraph 7#a7 shall not apply to any inventory exchange unless-- 7,a7 both parties are registered with the ,secretary as manufacturers1 producers1 or importers of taxable carbon substances1 and 7,b7 the person receiving the taxable carbon substance has1 at such time as the ,secretary may prescribe1 notified the manufacturer1 producer1 or importer of such person's registration number and the internal revenue district in which such person is registered4 7#c7 ,inventory exchange ,for purposes of this subsection1 the term inventory exchange means any exchange in which #b persons exchange property which is1 in the hands of each person1 property described in section #abba7;a77#a74 7d7 ,regulations ,the ,secretary shall prescribe such regulations as may be necessary to carry out the purposes of this subchapter4 4 7b7 ,establishment of ,america's ,energy ,security ,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 ,america's ,energy ,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 ,america's ,energy ,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 increase in revenues received in the ,treasury as the result of the tax imposed under section #dfia4 7c7 ,distribution of amounts in ,trust ,fund ,amounts in the ,trust ,fund equivalent to the taxes received in the ,treasury under section #dfia for a calendar year shall be available without further appropriation1 as follows3 7#a7 ,first1 the affected industry transition assistance amount shall be available for transition assistance to workers in industries negatively affected by the ,america's ,energy ,security ,trust ,fund ,act of #bjad1 as determined by the ,secretary of the ,treasury in consultation with the ,secretary of ,labor4 7#b7 ,second1 of the amount remaining after the application of paragraph 7#a71 the ,highway ,trust ,fund shortfall amount shall be available to be transferred to the ,highway ,trust ,fund4 ,for purposes of this paragraph1 the term ,highway ,trust ,fund shortfall amount means the amount determined by the ,secretary to be equal to the excess of-- 7,a7 the sum of the obligations of the ,united ,states specified in section #iejc7;c77#a7 plus the amounts to be expended under section #iejc7;e77#c71 over 7,b7 the amounts available in the ,highway ,trust ,fund to meet those obligations and expenditures 7determined without regard to this paragraph or section #iejc7;f77#e774 7#c7 ,third1 the amount remaining after the application of paragraph 7#a7 shall be available for payroll tax relief under the rebate paid under section #cf;,c4 7d7 ,affected industry transition assistance amount ,for purposes of subsection 7c77#a71 the affected industry transition assistance amount is the amount determined as follows3 7#a7 ,for calendar year #bjaf1 #a_/aj of the amount in the ,trust ,fund equivalent to the taxes received in the ,treasury under section #dfia for calendar year #bjaf4 7#b7 ,for calendar year #bjag1 #i_/aj of the amount made available under paragraph 7#a7 for calendar year #bjaf4 7#c7 ,for calendar year #bjah1 #d_/e of the amount made available under paragraph 7#a7 for calendar year #bjaf4 7#d7 ,for calendar year #bjai1 #g_/aj of the amount made available under paragraph 7#a7 for calendar year #bjaf4 7#e7 ,for calendar year #bjbj1 #c_/e of the amount made available under paragraph 7#a7 for calendar year #bjaf4 7#f7 ,for calendar year #bjba1 of the amount made available under paragraph 7#a7 for calendar year #bjaf4 7#g7 ,for calendar year #bjbb1 #b_/e of the amount made available under paragraph 7#a7 for calendar year #bjaf4 7#h7 ,for calendar year #bjbc1 #c_/aj of the amount made available under paragraph 7#a7 for calendar year #bjaf4 7#i7 ,for calendar year #bjbd1 #a_/e of the amount made available under paragraph 7#a7 for calendar year #bjaf4 7#aj7 ,for calendar year #bjbe1 #a_/aj of the amount made available under paragraph 7#a7 for calendar year #bjaf4 7#aa7 ,for calendar years after #bjbe1 zero4 4 7c7 ,transfers to ,highway ,trust ,fund ,subsection 7f7 of section #iejc of the ,internal ,revenue ,code of #aihf is amended by redesignating paragraph 7#e7 as paragraph 7#g7 and by inserting after paragraph 7#d7 the following new paragraph3 7#e7 ,additional increase in fund balance ,there is hereby transferred to the ,highway ,trust ,fund amounts appropriated each year from ,america's ,energy ,security ,trust ,fund under section #ieab7;c77#b74 ,such amounts shall be apportioned to the ,highway ,account and the ,mass ,transit ,account in accordance with subsection 7e77#e74 4 7d7 ,clerical amendments 7#a7 ,the table of subchapters for chapter #ch of such ,code is amended by adding at the end thereof the following new item3 ,subchapter ,e4 ,tax on carbon dioxide content of certain substances 4 7#b7 ,the table of sections for subchapter ,a of chapter #ih of such ,code is amended by adding at the end the following3 ,sec4 #ieab4 ,america's ,energy ,security ,trust ,fund4 4 7e7 ,effective date ,the amendments made by this section shall take effect on the date of the enactment of this ,act4 #c4 ,carbon tax rebate of payroll tax 7a7 ,in general ,subpart ,c of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf 7relating to refundable credits7 is amended by inserting after section #cf;,b the following new section3 #cf;,c4 ,carbon tax rebate of payroll tax 7a7 ,in general ,in the case of an individual1 there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to the carbon tax rebate4 7b7 ,carbon tax rebate 7#a7 ,in general ,for purposes of this section1 the term carbon tax rebate means with respect to a taxable year the individual's share of the amount determined by the ,secretary on a per capita basis to be the amount available under section #ieab7;c77#c7 for the calendar year in which or with which the taxable year begins4 7#b7 ,determination based on estimates ,the determination under paragraph 7#a7 shall be made on the basis of estimates by the ,secretary1 and proper adjustments shall be made in amounts available under section #ieab7;c77#c7 for the succeeding taxable year to the extent prior estimates were in excess of or less than the amounts actually available under such section for the prior taxable year4 7c7 ,limitation based on payroll taxes paid and ,social ,security benefits 7#a7 ,in general ,the amount allowed as a credit under subsection 7a7 with respect to any individual for a taxable year shall not exceed the greater of-- 7,a7 the total amount of taxes paid with respect to such individual for such taxable year under section #adja and chapters #ba and #bb1 determined after taking into account any refund under section #ca7;b7 and #fdac7;c71 or 7,b7 #aj percent of the aggregate amount of social security benefits 7within the meaning of section #hf7;d77 received by such individual for the taxable year4 7#b7 ,special rule for ,social ,security benefits received for less than #ab months ,for purposes of paragraph 7#a77;,b71 if ,social ,security benefits 7as so defined7 were not received for each month in the taxable year1 such benefits shall be annualized by multiplying the ,social ,security benefits received by #ab and dividing the result by the number of months in such taxable year for which such benefits were received4 7d7 ,denial of credit to dependents ,no credit shall be allowed under subsection 7a7 to an individual for such individual's taxable year if a deduction under section #aea with respect to such individual is allowed to another taxpayer for a taxable year beginning in the calendar year in which such individual's taxable year begins4 4 7b7 ,conforming amendments 7#a7 ,paragraph 7#b7 of section #acbd7;b7 of title #ca1 ,united ,states ,code1 is amended by inserting #cf;,c1 after #cf;,b14 7#b7 ,the table of sections for subpart ,c of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after the item relating to section #cf;,c the following new item3 ,sec4 #cf;,c4 ,carbon tax rebate of payroll tax4 4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjae4 #d4 ,study of taxation of non-carbon greenhouse gases 7a7 ,in general ,the ,secretary of the ,treasury1 in consultation with the ,secretary of ,energy shall conduct a study of the best methods to assess and collect tax on non-carbon greenhouse gases similar to the tax imposed by section #dfia of the ,internal ,revenue ,code of #aihf 7as added by this ,act74 7b7 ,report ,not later than #f months after the date of the enactment of this ,act1 the ,secretary of the ,treasury shall submit to the ,congress the findings of the report required under subsection 7a7 together with such legislative recommendations as the ,secretary determine appropriate for the assessment and collection of such tax4 #e4 ,sense of ,congress ,it is the sense of ,congress that the ,united ,states should work proactively under the ,united ,nations ,framework ,convention on ,climate ,change and in other appropriate fora to establish binding agreements committing all major greenhouse gas emitting nations and countries with globally competitive producers of carbon intensive goods to contribute equitably to the reduction of global greenhouse gas emissions4