,i  #aacth ,,congress  #b;d ,session    
,h4 ,r4 #ehgc  ,,in ,,the ,,house ,,of  
,,representatives  ,december #aa1 #bjad 
,mr4 ,huffman 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 provide for  
repealing the gas tax and establishing a
 carbon tax on highway fuels1 and for   
other purposes4  #a4 ,short title ,this 
,act may be cited as the ,gas ,tax      
,replacement ,act of #bjad4  #b4 ,repeal
 of excise tax on gasoline and diesel   
fuel  7a7 ,manufacturers tax ,section   
#djha7;a77#b77;,a7 of the ,internal     
,revenue ,code of #aihf is amended--    
7#a7 in clause 7i7 by striking #ah4c    
cents per gallon and inserting #j cents 

per gallon1 and  7#b7 in clause 7ii7 by 
striking #bd4c cents per gallon and     
inserting #j cents per gallon4  7b7     
,retail tax ,section #djda7;a7 of the   
,internal ,revenue ,code of #aihf is    
amended by striking paragraph 7#a74  7c7
 ,conforming amendments  7#a7 ,section  
#djha of the ,internal ,revenue ,code of
 #aihf is amended--  7,a7 in subsection 
7a77#b7 by striking subparagraph 7,d71  
7,b7 by striking subsection 7c71 and    
7,c7 in subsection 7d7 by striking      
paragraph 7#a74  7#b7 ,section #djda of 
the ,internal ,revenue ,code of #aihf is
 amended--  7,a7 by amending the heading
 of subsection 7a7 to read as follows3  
,special motor fuels1 and  7,b7 in      
subsection 7a77#b77;,b77i7 by striking  
the rate of tax specified in section    
#djha7;a77#b77;,a77i7 which is in effect
 at the time of such sale or use1 and   
inserting #ah4c cents per gallon4  7d7  
,effective date ,the amendments made by 
this section shall apply to fuel sold or
 used after ,december #ca1 #bjae4  #c4  

,carbon ,tax on ,highway ,fuels  7a7 ,in
 general ,paragraph 7#a7 of section     
#dfaa7;c7 of the ,internal ,revenue     
,code of #aihf is amended by striking   
and at the end of subparagraph 7,a71 by 
striking the period at the end of       
subparagraph 7,b7 and inserting 1 and1  
and by inserting after subparagraph 7,b7
 the following new subparagraph3  7,c7  
the carbon dioxide equivalent rate4  4  
7b7 ,rates  7#a7 ,in general ,paragraph 
7#b7 of section #dfaa7;c7 of the        
,internal ,revenue ,code of #aihf is    
amended by striking and at the end of   
subparagraph 7,a71 by striking the      
period at the end of subparagraph 7,b7  
and inserting 1 and1 and by inserting   
after subparagraph 7,b7 the following   
new subparagraph3  7,c7 the carbon      
dioxide equivalent rate is--  7i7 #ej   
per metric ton 7or portion thereof7 of  
total life-cycle emissions of carbon    
dioxide1 and  7ii7 an equivalent amount 
per metric ton 7or portion thereof7 of  
total life-cycle emissions of any other 

greenhouse gas determined on a ratio of 
the amount such other greenhouse gas per
 metric ton as the amount of carbon     
dioxide per metric ton1  in the crude   
oil or petroleum product 7as the case   
may be7 subject to tax under subsection 
7a7 which is to be refined into gasoline
 or diesel fuel4  ,for purposes of      
subparagraph 7,c71 total life-cycle     
emissions of carbon dioxide and other   
greenhouse gases shall be determined by 
the ,administrator of the ,environmental
 ,protection ,agency pursuant to section
 #d of the ,gas ,tax ,replacement ,act  
of #bjad4 4  7#b7 ,adjustment for       
inflation ,section #dfaa7;c7 of the     
,internal ,revenue ,code of #aihf is    
amended by adding at the end the        
following3  7#c7 ,carbon dioxide        
equivalent rate inflation adjustment    
7,a7 ,in general ,in the case of any    
calendar year after #bjad1 the dollar   
amount in paragraph 7#b77;,c7 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 8calendar year #bjac0 for  
8calendar year #aiib0 in subparagraph   
7,b7 thereof4  7,b7 ,rounding ,if any   
amount as increased under subparagraph  
7,a7 is not a multiple of #a1 such      
amount shall be rounded to the nearest  
multiple of #a4  4  7c7 ,alternative    
fuels producer excise tax  7#a7 ,in     
general ,subchapter ,a of chapter #ch of
 the ,internal ,revenue ,code of #aihf  
is amended by inserting after section   
#dfaa the following3  #dfaa;,a4 ,certain
 alternative fuels  7a7 ,general ,rule  
,there is hereby imposed a tax at the   
rate specified in subsection 7b7 on--   
7#a7 methanol1 ethanol1 and biodiesel   
produced in the ,united ,states by the  
producer thereof1 and  7#b7 methanol1   
ethanol1 and biodiesel1 and any blended 
product thereof1 entered into the       
,united ,states for consumption1 use1 or
 warehousing4  7b7 ,rate of tax ,the    

rate of the tax imposed by this section 
is--  7#a7 #ej per metric ton 7or       
portion thereof7 of total life-cycle    
emissions of carbon dioxide1 and  7#b7  
an equivalent amount per metric ton 7or 
portion thereof7 of total life-cycle    
emissions of any other greenhouse gas   
determined on a ratio of the amount such
 other greenhouse gas per metric ton as 
the amount of carbon dioxide per metric 
ton1  in methanol1 ethanol1 and         
biodiesel1 and any blended product      
thereof1 produced or entered into in the
 ,united ,states4 ,for purposes of the  
preceding sentence1 total life-cycle    
emissions of carbon dioxide and other   
greenhouse gases shall be determined by 
the ,administrator of the ,environmental
 ,protection ,agency pursuant to section
 #d of the ,gas ,tax ,replacement ,act  
of #bjad4  7c7 ,persons liable for tax  
7#a7 ,united ,states production ,the tax
 imposed by subsection 7a77#a7 shall be 
paid by the producer of the product on  
which such tax is imposed4  7#b7        

,imported products ,the tax imposed by  
subsection 7a77#b7 shall be paid by the 
person entering the product for         
consumption1 use1 or warehousing4  4    
7#b7 ,clerical amendment ,the table of  
sections for subchapter ,a of chapter   
#ch of the ,internal ,revenue ,code of  
#aihf is amended by inserting after the 
item relating to section #dfaa the      
following new item3  ,sec4 #dfaa;,a4    
,certain alternative fuels4  4  7d7     
,credits and payments for nontaxable    
uses  7#a7 ,gasoline used on farms      
,section #fdbj of the ,internal ,revenue
 ,code of #aihf is amended by inserting 
after subsection 7g7 the following3  7h7
 ,special rule for carbon dioxide       
equivalent rate of tax ,for purposes of 
this section1 a gallon of gasoline      
refined from a barrel of crude oil or   
petroleum product on which tax was      
imposed under section #dfaa at the      
carbon dioxide equivalent rate under    
subsection 7c77#a77;,c7 thereof and used
 for a purpose described in subsection  

7a7--  7#a7 shall be treated as a gallon
 of gasoline to which this section      
applies1 and  7#b7 the rate at which tax
 was imposed under section #dfaa with   
respect to such gallon shall be the same
 fraction of so much of the tax imposed 
under section #dfaa as is attributable  
to subsection 7c77#a77;,c7 thereof on   
such barrel as the fraction of such     
gallon of gas is of the whole barrel4  4
  7#b7 ,gasoline used for certain       
nonhighway purposes1 etc ,section #fdba 
of the ,internal ,revenue ,code of #aihf
 is amended by redesignating subsection 
7j7 as subsection 7k7 and by inserting  
after subsection 7i7 the following3  7j7
 ,special rule for carbon dioxide       
equivalent rate of tax ,for purposes of 
this section1 in the case of a gallon of
 gasoline refined from a barrel of crude
 oil or petroleum product on which tax  
was imposed under section #dfaa at the  
carbon dioxide equivalent rate under    
subsection 7c77#a77;,c7 thereof--  7#a7 
if such gallon is used for a purpose    

described in subsection 7a7 or 7b7 or is
 sold for a purpose described in        
subsection 7c71 such gallon shall be    
treated as a gallon of gasoline to which
 this section applies1 and  7#b7 the    
rate at which tax was imposed under     
section #dfaa with respect to such      
gallon shall be the same fraction of so 
much of the tax imposed under section   
#dfaa as is attributable to subsection  
7c77#a77;,c7 thereof on such barrel as  
the fraction of such gallon of gas is of
 the whole barrel4  4  7#c7 ,credit for 
alcohol fuel1 biodiesel1 and alternative
 fuel mixtures ,section #fdbf7;a7 of the
 ,internal ,revenue ,code of #aihf is   
amended by striking and at the end of   
paragraph 7#a71 by striking the period  
at the end of paragraph 7#b7 and        
inserting a comma1 and by inserting     
after paragraph 7#b7 the following3     
7#c7 against so much of the tax imposed 
by section #dfaa as is attributable to  
the carbon dioxide equivalent rate of   
tax under subsection 7c77#a77;,c7 an    

amount equal to the credit described in 
subsection 7c71 determined on the same  
fraction of the amount of such tax as   
the number of gallons of diesel used by 
the taxpayer in producing any biodiesel 
mixture for sale or use in a trade or   
business of the taxpayer1 and  7#d7     
against the tax imposed by section      
#dfaa;,a an amount equal to the sum of  
the credits described in subsections    
7b71 7c71 and 7e71 determined on the    
same fraction of the amount of such tax 
as the number of gallons of alcohol1    
biodiesel1 or alternative fuel used by  
the taxpayer in producing any fuel      
mixture of taxable fuel4  4  7#d7 ,fuels
 not used for taxable purposes ,section 
#fdbg of the ,internal ,revenue ,code of
 #aihf is amended by redesignating      
subsection 7p7 as subsection 7q7 and by 
inserting after subsection 7o7 the      
following3  7p7 ,special rule for carbon
 dioxide equivalent rate ,for purposes  
of this section1 in the case of a gallon
 of fuel refined from a barrel of crude 

oil or petroleum product on which tax   
was imposed under section #dfaa at the  
carbon dioxide equivalent rate of tax   
under subsection 7c77#a77;,c7 thereof1  
or produced from methanol1 ethanol1 or  
biodiesel on which tax was imposed under
 section #dfaa;,a1 if the sale or use of
 such fuel would give rise to a payment 
under this section but for the fact that
 such fuel was taxed under section #dfaa
 or #dfaa;,a and not section #djda or   
#djha--  7#a7 this section shall be     
applied as if such fuel had been taxed  
under section #djda or #djha1 and  7#b7 
the rate at which tax was imposed under 
section #dfaa or #dfaa;,a with respect  
to such fuel shall be--  7,a7 in the    
case of tax imposed under section       
#dfaa7;c77#a77;,c71 the same fraction of
 such tax on such barrel as the fraction
 of a gallon of such fuel is of the     
whole barrel1 and  7,b7 in the case of  
tax imposed under section #dfaa;,a1 the 
same fraction of the amount of such tax 
as the amount of fuel giving rise to a  

payment under this section4  4  7e7     
,effective date ,the amendments made by 
this section shall take effect on       
,january #a1 #bjaf4  #d4 ,life-cycle    
emissions  7a7 ,carbon dioxide emissions
 report ,not later than the first       
occurring at least #a year after the    
date of enactment of this ,act1 the     
,administrator shall transmit to the    
,internal ,revenue ,service and make    
public a report on the total life-cycle 
emissions of carbon dioxide for each    
covered transportation fuel1 expressed  
in tons of carbon dioxide emissions per 
barrel of fuel or an appropriate        
alternate measure4 ,such report shall   
take into account the differences in    
carbon dioxide emissions per barrel of  
fuel across different regions and       
countries due to means of resource      
extraction and production1              
transportation1 and other factors1 with 
each covered transportation fuel being  
as regionally specific as determined by 
the ,administrator4  7b7 ,addition of   

covered transportation fuel ,the        
,administrator shall--  7#a7 from time  
to time determine which transportation  
fuels have achieved a sufficient share  
of the on-road transportation fuel      
market to warrant being considered a    
covered transportation fuel1 and  7#b7  
update the report transmitted under     
subsection 7a71 and transmit such       
updated report to ,congress1 with the   
specifications on the total life-cycle  
emissions of carbon dioxide and other   
greenhouse gases for each fuel newly    
determined under paragraph 7#a7 to be   
considered a covered transportation     
fuel4  7c7 ,definitions ,in this        
section3  7#a7 ,administrator ,the term 
,administrator means the ,administrator 
of the ,environmental ,protection       
,agency4  7#b7 ,biofuel ,the term       
biofuel means the biofuel component of a
 transportation fuel4  7#c7 ,covered    
transportation fuel ,the term covered   
transportation fuel means gasoline1     
diesel fuel1 biofuel1 and any other fuel

 the ,administrator determines has      
achieved a sufficient share of the      
on-road transportation fuel market to   
warrant regulation under this section4  
7#d7 ,greenhouse gas ,the term          
greenhouse gas has the same meaning     
given the term in section #baa7o77#a7 of
 the ,clean ,air ,act 7#db ,u4,s4,c4    
#gede7o77#a774  7#e7 ,life-cycle        
emissions ,the term life-cycle emissions
 means emissions from all activities    
included in the production1 transport1  
storage1 and use of a fuel1 including   
land use changes1 means of resource     
extraction and production1              
transportation systems1 and leakages4