,i  #aaf? ,,congress  #a/ ,session  ,h4 
,r4 #djeh  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,july #be1 #bjai,mr4  
,rooney ( ,florida 7= himself & ,mr4    
,lip9ski7 introduc$ ! foll[+ bill2 :i* 0
 ref]r$ to ! ,committee on ,ways &      
,means1 & 9 addition to ! ,committees on
 ,en]gy & ,comm]ce1 & ,sci5ce1 ,space1 &
 ,te*nology1 = a p]iod to be subsequ5tly
 det]m9$ by ! ,speak]1 9 ea* case =     
consid]ation ( su* provisions z fall )9 
! jurisdiction ( ! committee conc]n$  ,a
 ,,bill  ,to am5d ! ,int]nal ,rev5ue    
,code ( #aihf to impose a tax on        
gre5h\se gas emissions1 accord+ly r$uce 
tax rates on payroll1 & = o!r purposes4 
#a4 ,%ort title2 table ( cont5ts  7a7   
,%ort title ,?is ,act may be cit$ z !   
,/emm+ ,w>m+ & ,augm5t+ ,pay ,act (     
#bjai or ! ,,swap ,act4  7b7 ,table (   
cont5ts ,! table ( cont5ts = ?is ,act is
 z foll[s3  ,sec4 #a4 ,%ort title2 table
 ( cont5ts4 ,sec4 #b4 ,f9d+s4 ,title    
,i--,gre5h\se ,gas ,emissions ,sec4     
#aja4 ,treatm5t ( gre5h\se gas          

emissions4 ,title ,,ii--,c>bon ,r$uc$   
,payroll ,tax ,sec4 #bja4 ,c>bon r$uc$  
payroll tax4 ,title ,,iii--,di/ribution 
( ,rev5ues ,f ,taxation ( ,gre5h\se ,gas
 ,emissions ,sec4 #cja4 ,e/abli%m5t ( ! 
,c>bon ,tru/ ,fund4 ,sec4 #cjb4         
,appropriations f ! ,c>bon ,tru/ ,fund4 
,title ,,iv--,am5dm5ts to ,f$]al        
,environm5tal ,/atutes ,sec4 #dja4      
,am5dm5ts to ! ,clean ,air ,act4  #b4   
,f9d+s ,! ,congress f9ds ! foll[+3 7#a7 
,climate *ange ?reat5s global /ability &
 our national economy4  7#b7 ,c>bon     
emissions are a significant contributor 
to ^! ?reats & mu/ be address$4  7#c7 ,!
 ,unit$ ,/ates private sector c face ^! 
*all5ges & be a global lead] 9          
te*nology1 innovation1 & effici5cy4     
7#d7 ,a price on c>bon levels ! economic
 play+ field & spurs adoption ( less    
c>bon-int5sive practices & te*nologies4 
7#e7 ,recycl+ rev5ues back to employ]s &
 employees w neutralize ! pot5tial      
impacts ( a tax4  ,i ,gre5h\se ,gas     
,emissions  #aja4 ,treatm5t ( gre5h\se  

gas emissions  7a7 ,9 g5]al ,! ,int]nal 
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+3  ,l ,gre5h\se ,gas   
,emissions  ,"p #a4 ,taxation (         
,gre5h\se ,gas ,emissions ,"p #b4 ,tax  
,adju/m5ts = ,imports & ,exports (      
,gre5h\se ,gas ,int5sive ,products  #a  
,taxation ( ,gre5h\se ,gas ,emissions   
,sec4 #iija4 ,imposition ( tax on       
combu/$ fossil fuel gre5h\se gas        
emissions4 ,sec4 #iijb4 ,imposition (   
tax on gre5h\se gas emissions f c]ta9   
indu/rial processes4 ,sec4 #iijc4       
,imposition ( tax on gre5h\se gas       
emissions f c]ta9 product uses4 ,sec4   
#iijd4 ,calculation ( taxable emissions4
 ,sec4 #iije4 ,cr$it = ,/ate paym5ts4   
,sec4 #iijf4 ,p5alties = nonpaym5t4     
,sec4 #iijg4 ,def9itions4  #iija4       
,imposition ( tax on combu/$ fossil fuel
 gre5h\se gas emissions  7a7 ,9 g5]al   
,!re is h]eby impos$ a tax on fossil    
fuels produc$ )91 or import$ into1 !    
,unit$ ,/ates4  7b7 ,rate ( tax  7#a7   
,gre5h\se gases t w\ld be releas$ if !  

fossil fuel 7 combu/$ ,! tax impos$ by  
subsection 7a7 %all be ! applicable     
am\nt p] ton ( c>bon dioxide equival5t (
 all gre5h\se gases t w\ld be releas$ if
 ! fossil fuel 7 combu/$4  7#b7         
,applicable am\nt ( c>bon dioxide       
equival5t emissions ,= purposes (       
p>agraph 7#a7-- 7,a7 ,= cal5d> ye>      
#bjba1 ! t]m applicable am\nt means #cj 
p] metric ton ( c>bon dioxide equival5t 
emissions4  7,b7 ,= ea* cal5d> ye> aft] 
#bjba1 ! t]m applicable am\nt means !   
sum (-- 7i7 ! applicable am\nt = !      
previ\s cal5d>1  7ii7 ! sum (-- 7,i7 #e 
p]c5tage po9ts1 plus  7,,ii7 a p]c5tage 
increase 9 ! previ\s ye>'s tax rate     
equal to ! increase 9 ! ,consum] ,price 
,index = ! previ\s cal5d> ye>1 plus     
7iii7 ! increase1 if any1 requir$ by    
p>agraph 7#c74  7,c7 ,consum] ,price    
,index = any cal5d> ye> ,= purposes (   
subp>agraph 7,b71 ! ,consum] ,price     
,index = ! previ\s cal5d> ye> is !      
av]age ( ! ,consum] ,price ,index =     
all-urban consum]s publi%$ by !         

,dep>tm5t ( ,labor z ( ! close ( !      
#ab-mon? p]iod end+ on ,augu/ #ca ( su* 
cal5d> ye>4 ,= purposes ( ! prec$+      
s5t5ce1 ! revision ( ! ,consum] ,price  
,index :i* is mo/ consi/5t ) ! ,consum] 
,price ,index = cal5d> ye> #aihf %all be
 us$4  7#c7 ,adju/m5t bas$ on emission  
levels  7,a7 ,9 g5]al ,if1 = cal5d> ye> 
#bjbc & e second cal5d> ye> !reaft]     
?r\gh cal5d> ye> #bjca1 ! cumulative    
am\nt ( emissions ) respect to ! cal5d> 
ye> report$ "u subp>agraph 7,b7 exce$s !
 cumulative am\nt ( emissions specifi$ =
 su* cal5d> ye> 9 subp>agraph 7,c71 !n !
 increase requir$ by ?is p>agraph = !   
cal5d> ye> beg9n+ on ! next ,janu>y #a  
foll[+ ! det]m9ation 9 subp>agraph 7,b7 
%all be #c p] metric ton4  7,b7 ,annual 
report ,n lat] ?an ,m>* #cj1 #bjba1 &   
annually !reaft]1 ! ,secret>y & !       
,adm9i/rator %all jo9tly det]m9e &      
report ! emissions dur+ ! cal5d> ye>    
end+ on ! prec$+ ,decemb] #ca f s\rces  
subject to taxation "u ?is "p4 ,! report
 %all specify :e!r ! cumulative am\nt ( 

annual emissions report$ = ! p]iod      
beg9n+ 9 cal5d> ye> #bjba & end+ at !   
end ( ! prec$+ cal5d> ye> exce$s !      
emission levels specifi$ 9 subp>agraph  
7,c74  7,c7 ,emission s*$ule ,! emission
 s*$ule specifi$ 9 ?is subp>agraph is z 
foll[s3 7i7 ,! total emissions ?r\gh    
cal5d> ye> #bjba are #e1jjj million     
metric tons ( c>bon dioxide equival5t4  
7ii7 ,! total emissions ?r\gh cal5d> ye>
 #bjbb are #i1hjj million metric tons ( 
c>bon dioxide equival5t4  7iii7 ,! total
 emissions ?r\gh cal5d> ye> #bjbc are   
#ad1fjj million metric tons ( c>bon     
dioxide equival5t4  7iv7 ,! total       
emissions ?r\gh cal5d> ye> #bjbd are    
#ai1bjj million metric tons ( c>bon     
dioxide equival5t4  7v7 ,! total        
emissions ?r\gh cal5d> ye> #bjbe are    
#bc1hjj million metric tons ( c>bon     
dioxide equival5t4  7vi7 ,! total       
emissions ?r\gh cal5d> ye> #bjbf are    
#bh1cjj million metric tons ( c>bon     
dioxide equival5t4  7vii7 ,! total      
emissions ?r\gh cal5d> ye> #bjbg are    

#cb1gjj million metric tons ( c>bon     
dioxide equival5t4  7viii7 ,! total     
emissions ?r\gh cal5d> ye> #bjbh are    
#cg1jjj million metric tons ( c>bon     
dioxide equival5t4  7ix7 ,! total       
emissions ?r\gh cal5d> ye> #bjbi are    
#da1cjj million metric tons ( c>bon     
dioxide equival5t4  7x7 ,! total        
emissions ?r\gh cal5d> ye> #bjcj are    
#de1ejj million metric tons ( c>bon     
dioxide equival5t4  7xi7 ,! total       
emissions ?r\gh cal5d> ye> #bjca are    
#di1gjj million metric tons ( c>bon     
dioxide equival5t4  7c7 ,by ,:om ,paid  
,! tax impos$ by subsection 7a7 %all be 
paid by ! own] ( ! fossil fuel at ! po9t
 ( taxation4  7d7 ,po9t ( ,taxation     
7#a7 ,= fossil fuels produc$ )9 ! ,unit$
 ,/ates1 ! po9t ( taxation %all be--    
7,a7 = coal1 ! m9e m\? or1 = wa%$ coal1 
! exit f ! coal prep>ation & process+   
plant1  7,b7 = petroleum products1 !    
exit po9t f ! ref9]y1 &  7,c7 = natural 
gas1 ! exit f ! gas process+ plant or1 =
 natural gas t is n treat$ at a gas     

process+ plant1 ! po9t ( sale to ! p]son
 :o combu/s ! gas or incorporates x into
 a product t is n int5d$ = combu/ion4   
7#b7 ,= any fossil fuel import$ into !  
,unit$ ,/ates1 ! po9t ( taxation %all be
 ! po9t at :i* x fir/ ent]s ! ,unit$    
,/ates4  7e7 ,exemptions  7#a7          
,exemption = ,noncombu/ive uses  7,a7   
,refund = r$uction or elim9ation (      
emissions ,any manufactur] ( a product t
 incorporates a fossil fuel t has be5   
tax$ "u ?is section :o c demon/rate to !
 ,secret>y t ! fossil fuel has be5      
trans=m$ via ! manufacture ( ! product s
 t ! fossil fuel's emissions w be r$uc$ 
or elim9at$ ov] ! product's lifetime    
%all be entitl$ to a refund ( ! tax paid
 "u ?is section on ! proportion ( !     
emissions r$uc$ !reby1 z det]m9$ by !   
,secret>y4  7,b7 ,rule ,! ,secret>y1 9  
consultation ) ! ,adm9i/rator1 %all     
e/abli% by rule ! crit]ia & process by  
:i* product manufactur]s c demon/rate t 
! conditions 9 subp>agraph 7,a7 h be5   
satisfi$4  7,c7 ,publication (          

regulations ,! ,secret>y %all publi% !  
regulations requir$ by ?is subsection no
 lat] ?an "o ye> prior to ! />t ( !     
cal5d> ye> ref]r$ to 9 section          
#iija7;b77#b77;,a74 ,! ,secret>y may n  
collect ! tax impos$ by ?is section =   
any cal5d> ye> t beg9s less ?an "o ye>  
aft] ! regulations are publi%$4  7#b7   
,exemption = ,c>bon ,capture & ,/orage  
7,a7 ,refund = seque/]s ,any p]son :o   
seque/]s gre5h\se gas emissions result+ 
f ! combu/ion ( fossil fuel t has pass$ 
?r\gh a po9t ( taxation %all be entitl$ 
to a refund ( ! tax impos$ by ?is       
section4 ,emissions t are us$ = enhanc$ 
oil recov]y %all be entitl$ = su* refund
 provid$ t ^! emissions meet all ( !    
crit]ia applicable to o!r emissions t   
qualify = su* refund4 ,no refund %all be
 recogniz$ = any am\nt ( gre5h\se gas   
:i* has be5 cr$it$ "u section #de,q4    
7,b7 ,rule ,! ,secret>y %all e/abli% by 
rule ! proc$ures by :i* to apply = su*  
refunds & su* refunds %all be paid )9   
six mon?s ( ! ,secret>y receiv+ an      

approvable application4  7,c7 ,"t (     
refund ,! ,secret>y may n refund any    
am\nts "u ?is p>agraph until su* "t z ! 
,secret>y has publi%$ ! regulations     
describ$ 9 section #de,q7d77#b74  7#c7  
,report to congress ,! ,secret>y %all1  
by ,janu>y #a/ ( ea* cal5d> ye>1 report 
! total am\nt ( refunds aw>d$ 9 !       
previ\s fiscal ye> "u ?is subsection &  
%all include1 z appropriate1 ! am\nts   
refund$ "u p>agraphs 7#a7 & 7#b74       
#iijb4 ,imposition ( tax on gre5h\se gas
 emissions f c]ta9 indu/rial processes  
7a7 ,9 g5]al ,!re is h]eby impos$ a tax 
on indu/rial process gre5h\se gas       
emissions by c]ta9 s\rce categories4    
7b7 ,li/ ( s\rce categories  7#a7       
,initial li/ ,! ,congress e/abli%es =   
purposes ( ?is section a li/ ( s\rce    
categories subject to ?is section z     
foll[s3  7,a7 ,iron & /eel production & 
metallurgical coke production4  7,b7    
,und]gr\nd coal m9+4  7,c7 ,coal        
prep>ation & process+ plants4  7,d7     
,ref9]ies4  7,e7 ,cem5t production4     

7,f7 ,petro*emical production4  7,g7    
,lime production4  7,h7 ,ammonia        
production4  7,i7 ,alum9um production4  
7,j7 ,soda a% production4  7,k7         
,f]roalloy production4  7,l7 ,phosphoric
 acid production4  7,m7 ,glass          
production4  7,n7 ,z9c production4  7,o7
 ,lead production4  7,p7 ,magnesium     
production & process+4  7,q7 ,nitric    
acid production4  7,r7 ,adipic acid     
production4  7,s7 ,semiconductor        
manufacture4  7,t7 ,electrical          
transmission & di/ribution4  7#b7       
,revision ( ! ,li/ ,! ,adm9i/rator %all 
review ! li/ ( s\rce categories e/abli%$
 by ?is subsection n less ?an once e    
five ye>s to det]m9e if !y %\ld cont9ue 
to be li/$ & publi% ! results ( t       
review4 ,! ,adm9i/rator may1 if         
appropriate1 add any s\rce categories to
 ?is li/ by rule4  7#c7 ,removal ( a    
,s\rce ,category f ! ,li/ ,!            
,adm9i/rator may remove a s\rce category
 f ?is li/ only if-- 7,a7 ! total       
emissions f ! entire s\rce category :i* 

are taxable "u ?is section h be5 less   
?an #bej1jjj metric tons ( c>bon dioxide
 equival5t p] ye> = ea* ( ?ree          
consecutive ye>s1  7,b7 ! av]age        
emissions f facilities 9 ! s\rce        
category :i* are taxable "u ?is section 
h be5 less ?an #be1jjj metric tons (    
c>bon dioxide equival5t p] ye> = ea* ( !
 ye>s ref]r$ 9 subp>agraph 7,a71 &  7,c7
 ! ,adm9i/rator det]m9es t !re is no    
reasonable possibility t ! total        
emissions f ! entire s\rce category :i* 
are taxable "u ?is section w exce$      
#bej1jjj metric tons p] ye> ( c>bon     
dioxide equival5t )9 any ( ! five ye>s  
foll[+ su* det]m9ation4  7#d7 ,addition 
( a ,s\rce ,category to ! ,li/ ,!       
,adm9i/rator may add a s\rce category to
 ?is li/ only if ! ,adm9i/rator det]m9es
 t-- 7,a7 ! total emissions f ! entire  
s\rce category :i* are taxable "u ?is   
section h be5 great] ?an #bej1jjj metric
 tons p] ye> ( c>bon dioxide equival5t 9
 any two ye>s out ( ! prec$+ five ye>s1 
7,b7 ! av]age emissions f facilities 9 !

 s\rce category :i* are taxable "u ?is  
section h be5 great] ?an #be1jjj metric 
tons p] ye> ( c>bon dioxide equival5t 9 
! ye>s 9 :i* emissions f ! entire s\rce 
category h be5 great] ?an #bej1jjj tons 
p] ye>1 &  7,c7 !re is a reasonable     
possibility t ! total emissions f !     
entire s\rce category :i* are taxable "u
 ?is section w be great] ?an #bej1jjj   
metric tons p] ye> ( c>bon dioxide      
equival5t 9 any ye> )9 ! next five ye>s 
foll[+ su* det]m9ation4  7#e7 ,!        
,adm9i/rator may add a s\rce category to
 ! li/ t has previ\sly be5 remov$       
pursuant to p>agraph 7#c7 if ! addition 
( ! s\rce category o!rwise meets !      
requirem5ts p] p>agraph 7#d74  7c7 ,rate
 ( ,tax ,! rate ( tax %all be ! same z !
 rate giv5 9 section #iija7;b77#b74  7d7
 ,by ,:om ,paid ,! tax impos$ by        
subsection 7a7 %all be paid by ! own] or
 op]ator ( ! po9t ( taxation4  7e7 ,po9t
 ( ,taxation ,! po9t ( taxation %all be 
any facility 9 a s\rce category :i*     
emits m ?an #be1jjj metric tons ( c>bon 

dioxide equival5t subject to taxation "u
 ?is section 9 any cal5d> ye>4  #iijc4  
,imposition ( tax on gre5h\se gas       
emissions f c]ta9 product uses  7a7 ,9  
g5]al ,!re is h]eby impos$ a tax on     
non-fossil-fuel-gre5h\se-gas emissions  
by c]ta9 manufactur$ products :5 us$ =  
_! int5d$ purposes t are manufactur$ )9 
or import$ into1 ! ,unit$ ,/ates4  7b7  
,li/ ( ,products  7#a7 ,initial li/ ,!  
,congress e/abli%es = purposes ( ?is    
section a li/ ( products subject to ?is 
section z foll[s3  7,a7 ,fuel e?anol4   
7,b7 ,indu/rial c>bonates4  7,c7 ,c>bon 
dioxide urea4  7,d7 ,soda a%4  7,e7     
,nitr\s oxide4  7,f7 ,ozone deplet+     
sub/ances1 b n if ! ,unit$ ,/ates has   
ratifi$ ! ,kigali ,am5dm5t to !         
,montreal ,protocol & is subject to     
,article #b;,j1 p>agraph #a ( ! ,am5d$  
,montreal ,protocol4  7,g7 ,biodiesel4  
7,h7 ,solid biomass fuels4  7#b7        
,revision ( ! ,li/ ,! ,adm9i/rator %all 
review ! li/ ( products e/abli%$ by ?is 
subsection n less ?an once e five ye>s  

to det]m9e if !y %\ld cont9ue to be li/$
 & publi% ! results ( t review4 ,!      
,adm9i/rator may1 if appropriate1 add   
any product to ?is li/ by rule4  7#c7   
,removal ( a ,product f ! ,li/ ,!       
,adm9i/rator may remove a product f ?is 
li/ only if-- 7,a7 ! total emissions f  
all ( ! product us$ )9 ! ,unit$ ,/ates  
has be5 less ?an #bej1jjj metric tons p]
 ye> ( c>bon dioxide equival5t = ea* (  
?ree consecutive ye>s1 &  7,b7 !        
,adm9i/rator det]m9es t !re is no       
reasonable possibility t ! total        
emissions f all ( ! product us$ 9 !     
,unit$ ,/ates w exce$ #bej1jjj metric   
tons p] ye> ( c>bon dioxide equival5t )9
 any ( ! five ye>s foll[+ su*           
det]m9ation4  7#d7 ,addition ( a        
,product to ! ,li/ ,! ,adm9i/rator may  
add a product to ?is li/ only if !      
,adm9i/rator det]m9es t-- 7,a7 ! total  
emissions f all ( ! product us$ )9 !    
,unit$ ,/ates has be5 great] ?an        
#bej1jjj metric tons p] ye> ( c>bon     
dioxide equival5t 9 any two ye>s out ( !

 prec$+ five ye>s1 &  7,b7 !re is a     
reasonable possibility t ! total        
emissions f all ( ! product us$ )9 !    
,unit$ ,/ates w be great] ?an #bej1jjj  
metric tons p] ye> ( c>bon dioxide      
equival5t 9 any ye> )9 ! next five ye>s 
foll[+ su* det]m9ation4  7#e7 ,!        
,secret>y may add a product to ! li/ t  
has previ\sly be5 remov$ pursuant to    
p>agraph 7#c7 if ! addition ( ! product 
o!rwise meets ! requirem5ts ( p>agraph  
7#d74  7c7 ,rate ( ,tax ,! rate ( tax   
%all be ! same z ! rate giv5 9 section  
#iija7;b77#b74  7d7 ,by ,:om ,paid ,!   
tax impos$ by subsection 7a7 %all be    
paid--  7#a7 = products manufactur$ 9 ! 
,unit$ ,/ates1 by ! own] or op]ator ( ! 
po9t ( taxation1 &  7#b7 = products     
import$ into ! ,unit$ ,/ates1 by ! own] 
( ! product :5 x ent]s ! ,unit$ ,/ates4 
7e7 ,po9t ( ,taxation ,! po9t ( taxation
 %all be-- 7#a7 = products manufactur$ 9
 ! ,unit$ ,/ates1 ! manufactur+         
facility1  7#b7 = products import$ into 
! ,unit$ ,/ates1 ! po9t at :i* x fir/   

ent]s ! ,unit$ ,/ates1 &  7#c7 =        
dome/ically produc$ biomass fuel1 any   
facility t emits f combu/$ biomass fuel 
m ?an #be1jjj metric tons ( c>bon       
dioxide equival5t gre5h\se gases 9 a    
ye>4  #iijd4 ,calculation ( taxable     
emissions  7a7 ,h[ ,to calculate taxable
 emissions ,9 consultation ) ! ,dep>tm5t
 ( ,en]gy1 ! ,adm9i/rator %all e/abli%  
by rule 7& may1 f "t to "t1 revise7 !   
me?od by :i* taxable emissions "u ?is "p
 %all be calculat$4  7b7 ,categories &  
subcategories consid]$ ,= purposes (    
calculat+ emissions taxable "u-- 7#a7   
section #iija1 ! ,adm9i/rator %all      
det]m9e by rule ! am\nt ( c>bon dioxide 
equival5t t w\ld be emitt$ if ea* fossil
 fuel 7 combu/$1 & ! ,adm9i/rator may   
e/abli% by rule su* subcategories ( ea* 
fuel & ! means by :i* x is combu/$ z !  
,adm9i/rator deems appropriate1  7#b7   
section #iijb1 ! ,adm9i/rator may       
det]m9e by rule su* subcategories ( any 
indu/rial process category li/$ 9       
subsection #iijb7;b7 z ! ,adm9i/rator   

deems appropriate1 &  7#c7 section      
#iijc1 = fuel e?anol1 biodiesel1 & solid
 biomass fuels ! ,adm9i/rator %all      
det]m9e by rule ! am\nt ( c>bon dioxide 
equival5t t w\ld be emitt$ bas$ on !    
lifecycle gre5h\se gas emissions ( !    
product1 & ! ,adm9i/rator may det]m9e by
 rule su* subcategories ( manufactur$   
products li/$ 9 subsection #iijc7;b7 z !
 ,adm9i/rator deems appropriate4  7c7   
,me?ods ,:]e gre5h\se gas emissions     
subject to taxation "u any section ( ?is
 "p are comb9$ ) gre5h\se gas emissions 
subject to taxation "u any o!r section (
 ?is "p1 ! ,adm9i/rator %all ensure1 to 
! greate/ degree possible1 t ! me?ods   
requir$ to det]m9e ! emissions taxable  
"u any section ( ?is "p d n include any 
emissions taxable "u any o!r section (  
?is "p4  7d7 ,me?od co/ diff]5ces ,!    
,adm9i/rator %all n require ! use ( any 
me?od to calculate taxable emissions    
:]eby ! diff]5ce 9 co/ ( ! me?od comp>$ 
to ! next *eape/ alt]native me?od is    
great] ?an ! am\nt ( ! tax t w\ld be    

paid on ! additional emissions det]m9$  
by ! m exp5sive me?od4  7e7 ,publication
 ( regulations ,! ,adm9i/rator %all     
publi% ! regulations requir$ by ?is     
section no lat] ?an ,janu>y #a1 #bjbj4  
,! ,secret>y may n collect ! tax impos$ 
by any section 9 ?is "p = any cal5d> ye>
 t beg9s less ?an "o ye> aft] !         
regulations applicable to ea* su*       
section are publi%$4  #iije4 ,cr$it =   
,/ate paym5ts  7a7 ,cr$it = paym5ts ,!  
,secret>y %all all[ any p]son :o is     
requir$ to make paym5t = gre5h\se gas   
emissions "u ?is "p a cr$it = paym5ts   
made on ^? emissions requir$ "u any     
,/ate law 9 ! foll[+ mann]3  7#a7 ,= !  
ye> giv5 9 section #iija7;b77#b77;,a71 a
 cr$it equal to #ajj p]c5t ( ! am\nt    
paid pursuant to requirem5ts ( ,/ate    
law4  7#b7 ,= ! fir/ ye> foll[+ ! ye>   
us$ 9 p>agraph 7#a71 a cr$it equal to   
#hj p]c5t ( ! am\nt paid pursuant to    
requirem5ts ( ,/ate law4  7#c7 ,= !     
second ye> foll[+ ! ye> us$ 9 p>agraph  
7#a71 a cr$it equal to #fj p]c5t ( !    

am\nt paid pursuant to requirem5ts (    
,/ate law4  7#d7 ,= ! ?ird ye> foll[+ ! 
ye> us$ 9 p>agraph 7#a71 a cr$it equal  
to #dj p]c5t ( ! am\nt paid pursuant to 
requirem5ts ( ,/ate law4  7#e7 ,= ! f\r?
 ye> foll[+ ! ye> us$ 9 p>agraph 7#a71 a
 cr$it equal to #bj p]c5t ( ! am\nt paid
 pursuant to requirem5ts ( ,/ate law4   
7b7 ,no cr$it ,= all ye>s foll[+ ! ye>  
us$ 9 p>agraph 7#e71 no cr$it %all be   
all[$4  #iijf4 ,p5alties = nonpaym5t    
,any p]son :o fails to comply ) !       
requirem5ts ( section #iija1 #iijb1 or  
#iijc %all be liable = paym5t to !      
,secret>y1 )\t dem&1 ( a p5alty 9 !     
am\nt equal to #c times ! applicable    
am\nt specifi$ by ^? sections = ! same  
tax ye> z ! ye> 9 :i* ! p]son fail$ to  
comply ) su* requirem5ts4  #iijg4       
,def9itions ,unless o!rwise provid$1 !  
def9itions provid$ h]e9 are applicable  
to all provisions ( ?is subtitle4  7#a7 
,adm9i/rator ,! t]m ,adm9i/rator means !
 ,adm9i/rator ( ! ,environm5tal         
,protection ,ag5cy4  7#b7 ,c>bon dioxide

 equival5t ,! t]m c>bon dioxide         
equival5t means ! numb] ( metric tons ( 
,,co#b emissions ) ! same global w>m+   
pot5tial ov] a #ajj-ye> p]iod z "o      
metric ton ( ano!r gre5h\se gas4  7#c7  
,coal ,! t]m coal means any ( !         
recogniz$ classifications & ranks (     
coal1 includ+ an?racite1 bitum9\s1      
semibitum9\s1 subbitum9\s1 lignite1 &   
peat4  7#d7 ,coal prep>ation & process+ 
plant ,! t]m coal prep>ation & process+ 
plant means any facility 7exclud+       
und]gr\nd m9+ op]ations7 :i* prep>es    
coal by "o or m ( ! foll[+ processes3   
break+1 cru%+1 scre5+1 wet or dry       
clean+1 & !rmal dry+4  7#e7 ,enhanc$    
,oil ,recov]y ,! t]m enhanc$ oil recov]y
 has ! mean+ def9$ at section           
#a4aic-a7;b77#b7 ( title #bf1 ,code (   
,f$]al ,regulations1 z ( ! date (       
enactm5t ( ?is ,act4  7#f7 ,facility ,! 
t]m facility means any physical prop]ty1
 plant1 build+1 /ructure1 s\rce1 or     
/ation>y equipm5t locat$ on "o or m     
contigu\s or adjac5t prop]ties 9 actual 

physical contact or sep>at$ solely by a 
public roadway or o!r public "r-(-way & 
"u common own]%ip or common control1 t  
emits or may emit any gre5h\se gas4     
7#g7 ,fossil fuel ,! t]m fossil fuel    
means coal1 petroleum products1 or      
natural gas4  7#h7 ,gre5h\se gas ,! t]m 
gre5h\se gas means c>bon dioxide1 nitr\s
 oxide1 me?ane1 hydr(luoroc>bons1       
p]fluoroc>bons1 & sulfur hexafluoride4  
7#i7 ,gre5h\se gas effects ,! t]m       
gre5h\se gas effects means ! adv]se     
effects ( gre5h\se gases on heal? or    
welf>e caus$ by ! gre5h\se gas's        
heat-trapp+ pot5tial or its effect on   
ocean acidification4  7#aj7 ,lifecycle  
gre5h\se gas emissions ,! t]m lifecycle 
gre5h\se gas emissions has ! mean+ giv5 
t t]m 9 section #baa ( ! ,cle> ,air ,act
 7#db ,u4,s4,c4 #gede7o77#a77;,h774     
7#aa7 ,natural gas ,! t]m natural gas   
means any fuel consi/+ 9 :ole or 9 "p ( 
natural gas1 includ+ compon5ts ( natural
 gas su* z me?ane & e?ane2 liquid       
petroleum gas2 syn!tic gas d]iv$ f coal1

 petroleum1 or natural gas liquids2 or  
any mixture ( natural gas & syn!tic gas4
  7#ab7 ,petroleum products ,! t]m      
petroleum products means unf9i%$ oils1  
liquefi$ petroleum gases1 p5tanes plus1 
aviation gasol9e1 motor gasol9e1        
naph?a-type jet fuel1 k]os5e-type jet   
fuel1 k]os5e1 di/illate fuel oil1       
residual fuel oil1 petro*emical         
fe$/ocks1 special naph?as1 lubricants1  
waxes1 petroleum coke1 asphalt1 road    
oil1 /ill gas1 & miscellane\s products  
obta9$ f ! process+ ( crude oil 7includ+
 lease cond5sate71 natural gas1 & o!r   
hydroc>bon comp\nds4 ,! t]m does n      
include natural gas1 liquefi$ natural   
gas1 bi(uels1 me?anol1 & o!r            
nonpetroleum fuels4  7#ac7 ,publi% ,!   
t]m publi% means publication 9 ! ,f$]al 
,regi/]4  7#ad7 ,ref9]y ,! t]m ref9]y   
means any facility engag$ 9 produc+     
gasol9e1 k]os5e1 di/illate fuel oils1   
residual fuel oils1 lubricants1 or o!r  
products ?r\gh di/illation ( petroleum  
or ?r\gh r$i/illation1 crack+ or re=m+ (

 unf9i%$ petroleum d]ivatives4  7#ae7   
,own] ,! t]m own] ) respect to any      
fossil fuel means any p]son :o has legal
 title to ! fossil fuel4  7#af7 ,own] or
 op]ator ,! t]m own] or op]ator )       
respect to any fossil fuel means any    
p]son :o has legal title to ! fossil    
fuel4  7#ag7 ,seque/]s ,! t]m seque/]s  
means ! p]man5t /orage ( c>bon dioxide  
or o!r gre5h\se gas su* t x does n      
escape into ! atmosph]e1 & is 9         
compliance ) ! regulations issu$        
pursuant to section #de,q7d77#b74  7#ah7
 ,solid biomass ,! t]m solid biomass    
means nonfossiliz$ & biodegradable      
organic mat]ial orig9at+ f plants1      
animals1 or microorganisms1 includ+     
products1 byproducts1 residues & wa/e f 
agriculture1 =e/ry & relat$ indu/ries z 
well z ! nonfossiliz$ & biodegradable   
organic fractions ( indu/rial &         
municipal wa/es1 b does n include gases 
& liquids recov]$ f ! decomposition (   
nonfossiliz$ & biodegradable organic    
mat]ial4  7#ai7 ,s\rce category ,! t]m  

s\rce category means any category or    
subcategory regulat$ "u "p #fj ( title  
#dj1 ,code ( ,f$]al ,regulations1 or "p 
#ij ( title #dj1 ,code ( ,f$]al         
,regulations4  #b ,tax ,adju/m5ts =     
,imports & exports ( ,gre5h\se ,gas     
,int5sive ,products  ,sec4 #iiaa4       
,purposes4 ,sec4 #iiab4 ,def9itions4    
,sec4 #iiac4 ,notification ( =eign      
c\ntries4 ,sec4 #iiad4 ,bord] tax       
adju/m5t rate4  #iiaa4 ,purposes  7a7   
,purposes ( "p ,! purposes ( ?is "p     
are-- 7#a7 to promote a /rong global    
ef=t to significantly r$uce gre5h\se gas
 emissions1 &  7#b7 to prev5t c>bon     
leakage4  7b7 ,additional purposes ( "p 
,! purposes ( ?is "p are additionally-- 
7#a7 to provide a rebate to export]s 9  
dome/ic eligible indu/rial sectors = !  
gre5h\se gas emission co/s ( ! own]s &  
op]ators incurr$ "u ?is title1 b n =    
co/s associat$ ) o!r relat$ or unrelat$ 
m>ket dynamics1  7#b7 to ensure t       
imports f o!r c\ntries1 &1 9 p>ticul>1  
fa/-gr[+ develop+ c\ntries1 d n enjoy   

competitive advantages because ( ! c>bon
 tax liability ( dome/ic manufactur]s1 &
 !re=e increase _! emissions1  7#c7 to  
enc\rage =eign c\ntries to take         
sub/antial action ) respect to _!       
gre5h\se gas emissions1 &  7#d7 to      
ensure t ! measures describ$ 9 ?is      
subp>t are design$ & implem5t$ 9 a mann]
 consi/5t ) applicable int]national     
agreem5ts to :i* ! ,unit$ ,/ates is a   
p>ty4  #iiab4 ,def9itions ,9 ?is "p3    
7#a7 ,c>bon leakage ,! t]m c>bon leakage
 means any sub/antial increase 7z       
det]m9$ by ! ,secret>y7 9 gre5h\se gas  
emissions by entities locat$ 9 o!r      
c\ntries caus$ by a co/ ( production    
increase 9 ! ,unit$ ,/ates result+ f    
implem5tation ( ?is title4  7#b7 ,bord] 
tax adju/m5t ,! t]m bord] tax adju/m5t  
means ! levy+ ( a tax on import$ cov]$  
goods equival5t to ! am\nt ( tax paid   
pursuant to "p #a ( ?is subtitle 9 !    
manufacture ( comp>able dome/ic         
manufactur$ goods1 & ! rebat+ ( ! tax   
paid pursuant to "p #a ( ?is subtitle t 

has be5 paid on cov]$ goods export$ f ! 
,unit$ ,/ates4  7#c7 ,bord] tax adju/m5t
 rate ,! t]m bord] tax adju/m5t rate    
means ! am\nt ( tax t w\ld be paid on a 
cov]$ good produc$ 9 ! ,unit$ ,/ates 9 !
 curr5t ye>4  7#d7 ,commission] ,! t]m  
,commission] means ! ,commission] (     
,unit$ ,/ates ,cu/oms & ,bord]          
,protection4  7#e7 ,cov]$ good ,! t]m   
cov]$ good means a good t is--  7,a7    
ent]$ "u a head+ or subhead+ ( !        
,h>moniz$ ,t>iff ,s*$ule ( ! ,unit$     
,/ates t corresponds to ! ,,naics code =
 an eligible indu/rial sector1 z        
e/abli%$ 9 ! concordance betwe5 ,,naics 
codes & ! ,h>moniz$ ,t>iff ,s*$ule ( !  
,unit$ ,/ates prep>$ by ! ,unit$ ,/ates 
,c5sus ,bureau1 or  7,b7 a manufactur$  
item = consumption4  7#f7 ,eligible     
indu/rial sector ,! t]m eligible        
indu/rial sector means an indu/rial     
sector det]m9$ by ! ,secret>y "u section
 #iiac4  7#g7 ,indu/rial sector ,! t]m  
indu/rial sector means any sector t--   
7,a7 is 9 ! manufactur+ sector 7z def9$ 

9 ,,naics codes #ca1 #cb1 & #cc71 or    
7,b7 is "p (1 or an entire sector t     
b5eficiates or o!rwise processes        
7includ+ agglom]ation7 metal ores1      
includ+ iron & copp] ores1 soda a%1 &   
phosphate4 ,! t]m indu/rial sector does 
n include any "p ( a sector t extracts  
fossil fuels1 metal ores1 soda a%1 or   
phosphate4  7#h7 ,manufactur$ item =    
consumption ,! t]m manufactur$ item =   
consumption means any good-- 7,a7 t     
includes 9 sub/antial quantities "o or m
 goods l ! goods produc$ by an eligible 
indu/rial sector1 &  7,b7 = :i* !       
,secret>y has det]m9$1 ) ! concurr5ce ( 
! ,commission]1 t ! application ( !     
bord] tax adju/m5t program pursuant to  
?is "p is te*nically & adm9i/ratively   
feasible & appropriate to a*ieve !      
purposes ( ?is "p1 tak+ into acc\nt !   
gre5h\se gas int5sity1 & :]e appropriate
 ! trade int5sity1 ( ! indu/rial sector 
t produces ! good1 z measur$ consi/5t ) 
section #iiac & ! ability ( ! produc]s  
to recov] co/ increases 9 ! m>ketplace &

 o!r appropriate factors4  7#i7 ,,naics 
,! t]m ,,naics means ! ,nor? ,am]ican   
,indu/rial ,classification ,sy/em (     
#bjjb4  7#aj7 ,output ,! t]m output     
means ! total tonnage or o!r /&>d unit (
 production 7z det]m9$ by ! ,secret>y7  
produc$ by an entity 9 an indu/rial     
sector4  #iiac4 ,notification ( =eign   
c\ntries  7a7 ,9 g5]al ,z soon z        
practicable aft] ! date ( ! enactm5t ( !
 ,/emm+ ,w>m+ & ,augm5t+ ,pay ,act (    
#bjai1 ! ,presid5t %all notify ea* =eign
 c\ntry-- 7#a7 reque/+ ! =eign c\ntry to
 take appropriate measures to limit !   
gre5h\se gas emissions ( ! =eign c\ntry1
 &  7#b7 indicat+ t a bord] tax adju/m5t
 may apply to cov]$ goods import$ into &
 export$ f ! ,unit$ ,/ates4  7b7 ,li/s  
7#a7 ,9 g5]al ,n lat] ?an #a ye> aft] ! 
date ( ! enactm5t ( ! ,/emm+ ,w>m+ &    
,augm5t+ ,pay ,act ( #bjai1 ! ,secret>y 
%all promulgate a rule designat+1 bas$  
on ! crit]ia "u subsection 7c77#b71     
indu/rial sectors :]e cov]$ products are
 liable = ! bord] tax adju/m5t4  7#b7   

,cont5t ,! li/ %all include ! am\nt ( ! 
bord] tax adju/m5t rate = ea* cov]$ good
 9 ! foll[+ cal5d> ye> pursuant to      
section #iiad4  7#c7 ,subsequ5t li/s ,n 
lat] ?an ,janu>y #ca ( ea* cal5d> ye>   
aft] ! cal5d> ye> 9 :i* ! ,/emm+ ,w>m+ &
 ,augm5t+ ,pay ,act ( #bjai is enact$1 !
 ,secret>y %all publi% 9 ! ,f$]al       
,regi/] an updat$ v]sion ( ! li/ publi%$
 "u p>agraph 7#a74  7c7 ,eligible       
indu/rial sectors  7#a7 ,presumptively  
eligible indu/rial sectors  7,a7        
,eligibility crit]ia  7i7 ,9 g5]al  7,i7
 ,import$ cov]$ goods are liable "u ?is 
"p if !y are produc$ 9 ! ,unit$ ,/ates 9
 an indu/rial sector t is includ$ 9 a   
#f-;digit classification ( ! ,,naics t  
meets ! crit]ia 9 bo? clauses 7ii7 &    
7iii74  7,,ii7 ,export$ cov]$ goods are 
eligible "u ?is "p if !y are produc$ 9 !
 ,unit$ ,/ates 9 an indu/rial sector t  
is includ$ 9 a #f-;digit classification 
( ! ,,naics t meets ! crit]ia 9 clause  
7ii74  7ii7 ,gre5h\se gas int5sity ,z   
det]m9$ by ! ,secret>y1 an indu/rial    

sector meets ! crit]ia ( ?is clause if !
 ,unit$ ,/ates indu/rial sector has a   
gre5h\se gas int5sity ( at lea/ #e      
p]c5t1 calculat$ by divid+--  7,i7 !    
numb] ( metric tons ( c>bon dioxide     
equival5t gre5h\se gas emissions        
7includ+ direct emissions f fuel        
combu/ion1 process emissions1 & indirect
 emissions f ! g5]ation ( electricity   
us$ to produce ! output ( ! sector7 ( ! 
sector bas$ on data describ$ 9          
subp>agraph 7,c71 multipli$ by !        
applicable rate 9 section #iija7;b77#b71
 by  7,,ii7 ! value ( ! %ipm5ts ( !     
sector1 bas$ on data describ$ 9         
subp>agraph 7,c74  7iii7 ,trade int5sity
 ,z det]m9$ by ! ,secret>y1 an indu/rial
 sector meets ! crit]ia ( ?is clause if 
! indu/rial sector has a trade int5sity 
( at lea/ #ae p]c5t1 calculat$ by       
divid+--  7,i7 ! value ( ! total imports
 & exports ( ! sector1 by  7,,ii7 !     
value ( ! %ipm5ts plus ! value ( imports
 ( ! sector1 bas$ on data describ$ 9    
subp>agraph 7,c74  7,b7 ,metal &        

phosphate production classifi$ "u m ?an 
"o naics code ,= purposes ( ?is section1
 ! ,secret>y %all-- 7i7 aggregate data =
 ! b5eficiation or o!r process+ 7includ+
 agglom]ation7 ( metal ores1 includ+    
iron & copp] ores1 soda a%1 or phosphate
 ) subsequ5t /eps 9 ! process ( metal & 
phosphate manufactur+1 reg>dless ( !    
,,naics code "u :i* ! activity is       
classifi$1 &  7ii7 aggregate data = !   
manufactur+ ( /eel ) ! manufactur+ (    
/eel pipe & tube made f pur*as$ /eel 9 a
 non9tegrat$ process4  7,c7 ,data s\rces
  7i7 ,value ( %ipm5ts  7,i7 ,9 g5]al ,!
 ,secret>y %all det]m9e ! value (       
%ipm5ts "u ?is subsection f data f !    
,unit$ ,/ates ,c5sus ,annual ,survey (  
,manufactur]s4  7,,ii7 ,av]age data     
available ,! ,secret>y %all use ! av]age
 ( data f ! mo/ rec5t #c ye>s = :i* !   
data are available4  7,,iii7 ,av]age    
data n available ,if data describ$ 9    
subclause 7,,ii7 are unavailable1 !     
,secret>y %all make a det]m9ation bas$  
on--  7aa7 data f ! mo/ detail$         

indu/rial classification level ( !      
,manufactur+ ,en]gy ,consumption ,survey
 ( ! ,en]gy ,in=mation ,adm9i/ration1 & 
7bb7 data f ! mo/ rec5t ,economic ,c5sus
 ( ! ,unit$ ,/ates4  7,,iv7 ,data n     
available = sector ,if data f !         
,manufactur+ ,en]gy ,consumption ,survey
 or ,economic ,c5sus are unavailable =  
any sector at ! #f-;digit classification
 level 9 ! ,,naics1 ! ,secret>y may use 
available ,manufactur+ ,en]gy           
,consumption ,survey or ,economic ,c5sus
 data p]ta9+ to a broad] indu/rial      
category classifi$ 9 ! ,,naics4  7,v7   
,data n available = process+ ,if data   
relat+ to ! b5eficiation or o!r process+
 7includ+ agglom]ation7 ( metal ores    
7includ+ iron & copp] ores1 soda a%1 or 
phosphate7 are n available f ! specifi$ 
data s\rces1 ! ,secret>y--  7aa7 %all   
use ! be/ available ,f$]al or ,/ate     
gov]nm5t data1 &  7bb7 may use1 to !    
ext5t necess>y1 repres5tative data      
submitt$ by entities t p]=m !           
b5eficiation or o!r process+ 7includ+   

agglom]ation71 9 mak+ a det]m9ation4    
7ii7 ,imports & exports  7,i7 ,9 g5]al  
,! ,secret>y %all base ! value ( imports
 & exports "u ?is subsection on ,unit$  
,/ates ,int]national ,trade ,commission 
data4  7,,ii7 ,av]age data available ,! 
,secret>y %all use ! av]age ( data f !  
?ree mo/ rec5t ye>s = :i* ! data are    
available4  7,,iii7 ,av]age data n      
available ,if data f ! ,unit$ ,/ates    
,int]national ,trade ,commission are    
unavailable = any sector at ! #f-;digit 
classification level 9 ! ,,naics1 !     
,secret>y may use ,unit$ ,/ates         
,int]national ,trade ,commission data   
p]ta9+ to a broad] indu/rial category   
classifi$ 9 ! ,,naics4  7iii7 ,p]c5tages
 ,! ,secret>y %all r\nd ! gre5h\se gas  
int5sity & trade int5sity p]c5tages "u  
subp>agraph 7,a7 to ! ne>e/ :ole numb]4 
7iv7 ,gre5h\se gas emission calculations
 ,:5 calculat+ ! metric tons ( c>bon    
dioxide equival5t gre5h\se gas emissions
 = ea* sector "u subp>agraph            
7,a77ii77,i71 ! ,secret>y--  7,i7 %all  

use ! be/ available data f ! ?ree mo/   
rec5t ye>s = :i* ! data are available1 &
  7,,ii7 may1 to ! ext5t necess>y )     
respect to a sector1 use economic &     
eng9e]+ models & ! be/ available        
in=mation on te*nology p]=mance levels =
 ! sector4  7#b7 ,adm9i/rative          
det]m9ation ( additional eligible       
indu/rial sectors  7,a7 ,updat$ trade   
int5sity data ,! ,secret>y %all         
designate z liable = bord] tax adju/m5t 
rate on import$ products "u ?is "p an   
indu/rial sector t--  7i7 met ! gre5h\se
 gas int5sity crit]ia 9 p>agraph        
7#a77;,a77ii7 z ( ! date ( promulgation 
( ! rule "u p>agraph 7#a71 &  7ii7 meets
 ! trade int5sity crit]ia e/abli%$ "u   
p>agraph 7#a77;,a77iii71 us+ data s\rces
 describ$ 9 p>agraph 7#a77;,c7 f any ye>
 aft] ! passage ( ?is ,act4  7,b7       
,individual %[+ petition  7i7 ,petition 
,9 addition to designation "u           
subp>agraph 7,a71 ! own] or op]ator ( an
 entity or a gr\p ( entities t          
collectively produce n less ?an #hj     

p]c5t ( ! av]age annual value ( %ipm5ts 
f )9 ! sector ( ! gr\p consi/5t )       
subclause 7,i71 t manufacture simil>    
products 9 an indu/rial sector may      
petition ! ,secret>y to designate z     
eligible indu/rial sectors "u ?is "p an 
entity or a gr\p ( entities t--  7,i7   
repres5t a sector us+ a /&>d product    
classification1 &  7,,ii7 meet !        
respective import &_/or export          
eligibility crit]ia 9 p>agraph          
7#a77;,a77i74  7ii7 ,data ,9 mak+ a     
det]m9ation "u ?is subp>agraph1 !       
,secret>y %all consid]-- 7,i7 data      
submitt$ by ! petition]1  7,,ii7 data   
solicit$ by ! ,secret>y f o!r entities 9
 ! sector1 &  7,,iii7 data specifi$ 9   
p>agraph 7#a77;,c74  7iii7 ,basis (     
subsector det]m9ation  7,i7 ,9 g5]al    
,except z provid$ 9 subclause 7,,ii71 ! 
,secret>y %all det]m9e an entity or gr\p
 ( entities to be a subsector ( a       
#f-;digit section ( ! ,,naics code bas$ 
only on ! products manufactur$ & n !    
indu/rial process by :i* ! products are 

manufactur$4  7,,ii7 ,type ( mat]ial ,! 
,secret>y may det]m9e an entity or gr\p 
( entities t manufacture a product f    
prim>ily virg9 mat]ial to be a sep>ate  
subsector f ano!r entity or gr\p (      
entities t manufacture ! same product   
prim>ily f recycl$ mat]ial4  7iv7 ,use (
 mo/ rec5t data ,9 det]m9+ :e!r to      
designate a sector or subsector z an    
eligible indu/rial sector "u ?is        
subp>agraph1 ! ,secret>y %all use ! mo/ 
rec5t data available f ! s\rces describ$
 9 p>agraph 7#a77;,c71 r ?an ! data f ! 
ye>s specifi$ 9 p>agraph 7#a77;,c71 to  
det]m9e ! trade int5sity ( ! sector or  
subsector1 b only = det]m9+ ! trade     
int5sity4  7v7 ,f9al action ,! ,secret>y
 %all take f9al action on a petition    
describ$ 9 ?is subp>agraph n lat] ?an   
#ahj days aft] ! date ! complet$        
petition is receiv$ by ! ,secret>y4     
7#c7 ,cessation ( qualify+ activities   
,if1 z det]m9$ by ! ,secret>y1 an       
indu/rial sector or a cov]$ good )9 !   
sector is no long] liable to be         

designat$ "u ?is section1 ! ,commission]
 %all cease to apply ! bord] tax        
adju/m5t on ! relevant cov]$ goods )    
effect f ,janu>y #a ( ! foll[+ ye>4     
#iiad4 ,bord] tax adju/m5t rate  7a7    
,e/abli%m5t ,n lat] ?an ,janu>y #a1     
#bjbj1 ! ,secret>y1 ) ! concurr5ce ( !  
,commission]1 %all promulgate           
regulations--  7#a7 e/abli%+ ! products 
:i* are liable =1 & requir+ paym5t (1 ! 
bord] tax adju/m5t rate1  7#b7 e/abli%+ 
a g5]al me?odology = calculat+ ! level (
 ! bord] tax adju/m5t rate t a dome/ic  
import] ( any cov]$ good mu/ submit & ! 
rebate t an export] w receive1  7#c7    
e/abli%+ an adm9i/rative process :]eby  
any det]m9ation by ! ,secret>y "u ?is   
subsection may be appeal$1  7#d7 exempt+
 f ?is section products t orig9ate f--  
7,a7 any c\ntry t ! ,unit$ ,nations has 
id5tifi$ z among ! lea/ develop$ (      
develop+ c\ntries1 or  7,b7 any c\ntry t
 ! ,presid5t has det]m9$ to be          
responsible = less ?an #j4e p]c5t (     
total global gre5h\se gas emissions &   

less ?an #e p]c5t ( global production 9 
! eligible indu/rial sector1  7#e7      
specify+ ! proc$ures t ! ,commission] w 
apply = ! decl>ation & entry ( cov]$    
goods ) respect to ! eligible indu/rial 
sector into ! cu/oms t]ritory ( ! ,unit$
 ,/ates1 &  7#f7 e/abli%+ proc$ures t   
prev5t circumv5tion ( ! c>bon tax       
liability = cov]$ goods t are           
manufactur$ or process$ 9 m ?an "o =eign
 c\ntry4  7b7 ,presid5tial discretion ,!
 ,presid5t may elect n to levy ! bord]  
tax adju/m5t = an eligible indu/rial    
sector or = specific products )9 t      
sector if ! ,presid5t det]m9es &        
c]tifies to ,congress t ! program w\ld n
 be 9 ! national int]e/1 economic int]e/
 or environm5tal int]e/ ( ! ,unit$      
,/ates4  7c7 ,limitation on imposition (
 tax ,a bord] tax adju/m5t pursuant to  
?is subp>t may n be impos$ ) respect to 
any cal5d> ye> t beg9s less ?an "o ye>  
aft] regulations are publi%$ "u         
subsection 7a74  4  7b7 ,cl]ical am5dm5t
 ,! table ( subtitles = ! ,int]nal      

,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+ new item3  ,subtitle  
,l4 ,gre5h\se ,gas ,emissions  4  7c7   
,effective date ,! am5dm5ts made by ?is 
section %all apply to emissions aft]    
,decemb] #ca1 #bjai4  ,,ii ,c>bon ,r$uc$
 ,payroll ,tax  #bja4 ,c>bon r$uc$      
payroll tax  7a7 ,9 g5]al ,not)/&+ any  
o!r provision ( law--  7#a7 ) respect to
 any taxable ye> :i* beg9s aft] ,decemb]
 #ca1 #bjbj1 ! rate ( tax "u section    
#adja7;a7 ( ! ,int]nal ,rev5ue ,code (  
#aihf %all be #ab4d p]c5t m9us ! r$uc$  
c>bon rate1 &  7#b7 ) respect to        
remun]ation receiv$ aft] ,decemb] #ca1  
#bjbj-- 7,a7 ! rate ( tax "u #caja7;a7 (
 su* ,code %all be #f4b p]c5t m9us      
"o-half ( ! r$uc$ c>bon rate 7includ+ = 
purposes ( det]m9+ ! applicable p]c5tage
 "u sections #cbja7;a7 & #cbaa7;a77#a7 (
 su* ,code71 &  7,b7 ! rate ( tax "u    
subsection 7a7 ( section #caaa ( su*    
,code %all be #f4b p]c5t m9us "o-half ( 
! r$uc$ c>bon rate 7includ+ = purposes (
 subsections 7e7 & 7f7 ( su* section &  

det]m9+ ! applicable p]c5tage "u section
 #cbba7;a7 ( su* ,code74  7b7           
,coord9ation ,) ,d$uctions = ,employm5t 
,taxes  7#a7 ,d$uction 9 comput+ net    
e>n+s f self-employm5t ,= purposes (    
apply+ section #adjb7;a77#ab7 ( !       
,int]nal ,rev5ue ,code ( #aihf1 ! rate (
 tax impos$ by subsection #adja7;a7 (   
su* ,code %all be det]m9$ )\t reg>d to !
 r$uction 9 su* rate "u ?is section4    
7#b7 ,individual d$uction ,9 ! case ( ! 
taxes impos$ by section #adja ( su*     
,code = any taxable ye> :i* beg9s 9 !   
payroll tax c>bon p]iod1 ! d$uction "u  
section #afd7;f7 ) respect to su* taxes 
%all be equal to ! sum (--  7,a7 "o-half
 ( ! portion ( su* taxes attributable to
 ! tax impos$ by section #adja7;a7      
7det]m9$ aft] ! application ( ?is       
section71 plus  7,b7 "o-half ( ! portion
 ( su* taxes attributable to ! tax      
impos$ by section #adja7;b74  7c7 ,r$uc$
 c>bon rate ,= purposes ( ?is section-- 
7#a7 ,9 g5]al ,! t]m r$uc$ c>bon rate   
means ! numb] ( p]c5tage po9ts det]m9$  

by ! ,secret>y to be-- 7,a7 #a p]c5tage 
po9t 9 ! case ( any taxable ye> :i*     
beg9s dur+ cal5d> ye> #bjba1 &  7,b7 9 !
 case ( any taxable ye> beg9n+ 9 a      
cal5d> ye> beg9n+ aft] cal5d> ye> #bjba1
 ! numb] ( p]c5tage po9ts det]m9$ by !  
,secret>y to be1 = ! cal5d> ye> !       
product (--  7i7 #ab4d1 &  7ii7 #eb4e   
p]c5t ( am\nts ( e/imat$ taxes receiv$ 9
 ! ,treasury "u subtitle ,l ( ! ,int]nal
 ,rev5ue ,code ( #aihf 7relat+ to       
gre5h\se gas emissions71 divid$ by      
e/imat$ taxes t w\ld h be5 receiv$ 9 !  
,treasury ) respect to a cal5d> ye> "u  
sections #adja7;a71 #caja7;a71          
#caaa7;a71 & ! applicable p]c5tage ( su*
 taxes "u #cbja7;a71 #cbaa7;a77#a71 &   
#cbba7;a71 7 ?is section n 9 effect4    
7#b7 ,e/imates ,= purposes ( p>agraph   
7#a71 ! det]m9ation ( am\nts receiv$ 9 !
 ,treasury %all be made on ! basis (    
e/imates by ! ,secret>y ( ! ,treasury   
7or ! ,secret>y's delegate71 & prop]    
adju/m5ts %all be made 9 ! am\nts       
subsequ5tly e/imat$ to ! ext5t prior    

e/imates 7 9 excess ( or less ?an actual
 receipts4  7#c7 ,publication ( r$uc$   
c>bon rate ,n lat] ?an ,octob] #ca ( ea*
 cal5d> ye>1 ! ,secret>y %all publi% !  
r$uc$ c>bon rate det]m9$ "u ?is         
subsection = ! succe$+ cal5d> ye>4  7d7 
,employ] ,notification ,! ,secret>y ( ! 
,treasury %all notify employ]s ( !      
payroll tax holiday p]iod 9 any mann] ! 
,secret>y deems appropriate4  7e7       
,transf]s ( ,funds  7#a7 ,transf]s to   
f$]al old-age & survivors insurance tru/
 fund ,!re are h]eby appropriat$ to !   
,f$]al ,old-,age & ,survivors ,tru/     
,fund & ! ,f$]al ,disability ,insurance 
,tru/ ,fund e/abli%$ "u section #bja ( !
 ,social ,security ,act 7#db ,u4,s4,c4  
#dja7 am\nts equal to ! r$uction 9      
rev5ues to ! ,treasury by reason ( !    
application ( subsection 7a74 ,am\nts   
appropriat$ by ! prec$+ s5t5ce %all be  
transf]r$ f ! g5]al fund at su* times & 
9 su* mann] z to replicate to ! ext5t   
possible ! transf]s :i* w\ld h occurr$  
to su* ,tru/ ,fund _h su* am5dm5ts n be5

 enact$4  7#b7 ,transf]s to social      
security equival5t b5efit acc\nt ,!re   
are h]eby appropriat$ to ! ,social      
,security ,equival5t ,b5efit ,acc\nt    
e/abli%$ "u section #ae;,a7a7 ( !       
,railroad ,retirem5t ,act ( #aigd 7#de  
,u4,s4,c4 #bcan-#a7;a77 am\nts equal to 
! r$uction 9 rev5ues to ! ,treasury by  
reason ( ! application ( subsection     
7a77#b74 ,am\nts appropriat$ by ! prec$+
 s5t5ce %all be transf]r$ f ! g5]al fund
 at su* times & 9 su* mann] z to        
replicate to ! ext5t possible ! transf]s
 :i* w\ld h occurr$ to su* ,acc\nt _h   
su* am5dm5ts n be5 enact$4  7#c7        
,coord9ation ) o!r ,f$]al laws ,=       
purposes ( apply+ any provision ( ,f$]al
 law o!r ?an ! provisions ( ! ,int]nal  
,rev5ue ,code ( #aihf1 ! rate ( tax 9   
effect "u section #caja7;a7 ( su* ,code 
%all be det]m9$ )\t reg>d to ! r$uction 
9 su* rate "u ?is section4  7f7 ,special
 rule ,n lat] ?an ,octob] #a ( ea*      
fiscal ye> beg9n+ aft] fiscal ye> #bjba 
7,janu>y #a1 #bjba 9 ! case ( fiscal ye>

 #bjba71 f am\nts 9 ! g5]al fund ( !    
,treasury n o!rwise appropriat$1 !      
,commission] ( ,social ,security %all   
pay an am\nt1 equal to #g4e p]c5t (     
am\nts ( taxes receiv$ 9 ! ,treasury "u 
subtitle ,l ( ! ,int]nal ,rev5ue ,code (
 #aihf 7relat+ gre5h\se gas emissions71 
to be di/ribut$ equally among ea*       
individual entitl$ to mon?ly insurance  
b5efits "u title ,,ii ( ! ,social       
,security ,act1 or to an annuity "u     
section #b ( ! ,railroad ,retirem5t ,act
 ( #aigd = ! fir/ mon? ( ea* ye>4  ,,iii
 ,di/ribution ( ,rev5ues ,f ,taxation ( 
,gre5h\se ,gas ,emissions  #cja4        
,e/abli%m5t ( ! ,c>bon ,tru/ ,fund  7a7 
,creation ( ,tru/ ,fund ,!re is h]eby   
creat$ 9 ! ,treasury ( ! ,unit$ ,/ates a
 tru/ fund to be kn[n z ! ,,c>bon ,tru/ 
,fund4  7b7 ,transf]s to ,tru/ ,fund    
,!re are h]eby appropriat$ to ! ,,c>bon 
,tru/ ,fund am\nts equival5t to #ae     
p]c5t ( ! taxes receiv$ 9 ! ,treasury "u
 subtitle ,l ( ! ,int]nal ,rev5ue ,code 
( #aihf 7z add$ by title ,i ( ?is ,act74

  #cjb4 ,appropriations f ! ,,c>bon     
,tru/ ,fund  ,am\nts 9 ! ,,c>bon ,tru/  
,fund = a fiscal ye> %all be available1 
z provid$ by appropriation ,acts1 z     
foll[s3  7#a7 ,fifty p]c5t ( su* am\nts 
%all be available = ,/ate block grants  
to be us$ to (fset high] en]gy co/s =   
l[-income h\seholds4  7#b7 ,fifty p]c5t 
( su* am\nts %all be available = climate
 adaptation1 c>bon seque/ration1 en]gy  
effici5cy1 & advanc$ ,r,d programs4     
,,iv ,am5dm5ts to ,f$]al ,environm5tal  
,/atutes  #dja4 ,am5dm5ts to ! ,clean   
,air ,act  7a7 ,9 g5]al ,title ,,iii ( !
 ,clean ,air ,act 7#db ,u4,s4,c4 #gfja7 
is am5d$ by add+ at ! end ! foll[+3     
#ccj4 ,moratorium aga9/ c]ta9           
regulations bas$ on gre5h\se gas effects
  7a7 ,fuels ,unless specifically       
au?oriz$ 9 section #bjb1 #baa1 #bac1    
#bca1 or ?is section1 aft] a fossil fuel
 has pass$ ?r\gh a po9t ( taxation z    
provid$ 9 section #iija7;d7 ( ! ,int]nal
 ,rev5ue ,code ( #aihf1 subject to      
subsection 7g71 ! ,adm9i/rator %all n   

publi% or en=ce any rule limit+ !       
emission ( gre5h\se gases f ! combu/ion 
( t fuel "u ?is ,act 7or impose any     
requirem5t on any ,/ate to limit su*    
emission7 on ! basis ( ! emission's     
gre5h\se gas effects4  7b7 ,emissions   
,unless specifically au?oriz$ 9 section 
#bjb1 #baa1 #bac1 #bca1 or ?is section1 
if emission ( any gre5h\se gas is       
subject to taxation pursuant to any (   
sections #iijb ?r\gh #iijc ( ! ,int]nal 
,rev5ue ,code ( #aihf1 ! ,adm9i/rator   
%all n publi% or en=ce any rule limit+  
su* emission "u ?is ,act 7or impose any 
requirem5t on any ,/ate to limit su*    
emission7 on ! basis ( ! emission's     
gre5h\se gas effects4  7c7 ,au?oriz$    
regulation ,not)/&+ subsections 7a7 &   
7b71 no?+ 9 ?is section limits !        
,adm9i/rator's au?ority pursuant to any 
o!r provision ( ?is ,act--  7#a7 to     
limit ! emission ( any gre5h\se gas     
because ( any adv]se impact on heal? or 
welf>e o!r ?an its gre5h\se gas effects2
  7#b7 9 limit+ emissions z describ$ 9  

p>agraph 7#a71 to consid] ! collat]al   
b5efits ( limit+ ! emissions because (  
gre5h\se gas effects2  7#c7 to limit !  
emission ( any o!r pollutant t is n a   
gre5h\se gas t ! ,adm9i/rator det]m9es  
by rule has heat-trapp+ prop]ties2 or   
7#d7 to take any action ) respect to any
 gre5h\se gas o!r ?an limit+ its        
emission1 includ+-- 7,a7 monitor+1      
report+1 & record-keep+ requirem5ts2    
7,b7 conduct+ or support+ inve/igations2
 &  7,c7 in=mation collection4  7d7     
,exception = c]ta9 gre5h\se gas         
emissions ,not)/&+ subsections 7a7 &    
7b71 no?+ 9 ?is section limits !        
,adm9i/rator's au?ority to regulate     
gre5h\se gas emissions f--  7#a7        
facilities t are subject to-- 7,a7      
subp>ts ,,oooo or ,o,o,o,oa ( "p #fj (  
title #dj1 ,code ( ,f$]al ,regulations1 
z 9 effect on ,janu>y #a1 #bjah1 or     
7,b7 w\ld be subject to ei!r subp>t     
,,oooo or subp>t ,o,o,o,oa if ^? subp>ts
 appli$ to su* facilities reg>dless ( ! 
date on :i* con/ruction1 modification1  

or recon/ruction comm5c$1 &  7#b7 ,,potw
 ,treatm5t ,plants 7z def9$ 9 section   
#djc4c7r7 ( title #dj1 ,code ( ,f$]al   
,regulations74  7e7 ,def9itions ,9 ?is  
section1 ! t]ms gre5h\se gas & gre5h\se 
gas effects h ! mean+s giv5 to ^? t]ms 9
 section #iijg ( ! ,int]nal ,rev5ue     
,code ( #aihf4  7f7 ,moratorium         
expiration ,! moratoria on !            
,adm9i/rator publi%+ or en=c+ rules     
limit+ ! emission ( gre5h\se gases 9    
subsections 7a7 & 7b7 & section         
#baa7;c77#e7 ( ?is ,act %all expire on  
,janu>y #a1 #bjcd4  7g7 ,exceptions     
7#a7 #bjbd ,not)/&+ subsections 7a7 &   
7b7 & section #baa7;c77#e7 ( ?is ,act1  
if ! ,adm9i/rator det]m9es by ,m>* #cj1 
#bjbf1 pursuant to ! report requir$ by  
section #iija7;b77#c77;,b7 ( ! ,int]nal 
,rev5ue ,code ( #aihf1 t total gre5h\se 
gas emissions subject to taxation "u    
sections #iija ?r\gh #iijc ( su* ,code  
dur+ ! p]iod #bjba ?r\gh #bjbe exce$ !  
emission level specifi$ 9 section       
#iija7;b77#c77;,c7 ( su* ,code = cal5d> 

ye> #bjbe1 !n beg9n+ on ,octob] #a1     
#bjbf1 ! prohibition 9 subsections 7a7 &
 7b7 & section #baa7;c77#e7 ( ?is ,act  
on publi%+ or en=c+ rules limit+ !      
emission ( gre5h\se gases 7& impos+ any 
requirem5t on any ,/ate to limit su*    
emission7 %all n apply4  7#b7 #bjbh     
,not)/&+ subsections 7a7 & 7b7 & section
 #baa7;c77#e7 ( ?is ,act1 if !          
,adm9i/rator det]m9es by ,m>* #cj1      
#bjcj1 pursuant to ! report requir$ by  
section #iija7;b77#c77;,b7 ( ! ,int]nal 
,rev5ue ,code ( #aihf1 t total gre5h\se 
gas emissions subject to taxation "u    
sections #iija ?r\gh #iijc ( su* ,code  
dur+ ! p]iod #bjba ?r\gh #bjbi exce$ !  
emission level specifi$ 9 section       
#iija7;b77#c77;,c7 ( su* ,code = cal5d> 
ye> #bjbi1 !n beg9n+ on ,octob] #a1     
#bjcj1 ! prohibition 9 subsections 7a7 &
 7b7 & section #baa7;c77#e7 ( ?is ,act  
on publi%+ or en=c+ rules limit+ !      
emission ( gre5h\se gases 7& impos+ any 
requirem5t on any ,/ate to limit su*    
emission7 %all n apply4  4  7b7 ,new    

motor vehicles & new motor vehicle      
eng9es ,section #bjb7;b7 ( ! ,clean ,air
 ,act 7#db ,u4,s4,c4 #geba7;b77 is      
am5d$-- 7#a7 by r$esignat+ ! second     
p>agraph 7#c7 7z r$esignat$ by section  
#bcj7d77;,c7 ( ,public ,law #aja-edi    
7#ajd ,/at4 #bebi77 z p>agraph 7#d72 &  
7#b7 by add+ at ! end ! foll[+3  7#e7   
,not)/&+ section #ccj7;a71 !            
,adm9i/rator may--  7,a7 limit !        
emission ( any gre5h\se gas 7z def9$ 9  
section #iijg ( ! ,int]nal ,rev5ue ,code
 ( #aihf7 on ! basis ( ! emission's     
gre5h\se gas effects 7z def9$ 9 section 
#iijg ( ! ,int]nal ,rev5ue ,code (      
#aihf7 f any class or classes ( new     
motor vehicles or new motor vehicle     
eng9es subject to regulation "u         
subsection 7a77#a72 &  7,b7 grant a     
waiv] "u section #bji7;b77#a7 = /&>ds = 
! control ( gre5h\se gas emissions4  4  
7c7 ,fuels ,section #baa7;c7 ( ! ,clean 
,air ,act 7#db ,u4,s4,c4 #gede7;c77 is  
am5d$ by add+ at ! end ! foll[+ new     
p>agraph3  7#e7 ,except z requir$ 9     

section #baa7o71 ! ,adm9i/rator %all n1 
pursuant to ?is subsection1 impose on   
any manufactur]1 processor1 or          
di/ributor ( fuel any requirem5t = !    
purpose ( r$uc+ ! emission ( any        
gre5h\se gas 7z def9$ 9 section #iijg ( 
! ,int]nal ,rev5ue ,code ( #aihf7       
produc$ by combu/ion ( ! fuel on ! basis
 ( ! emission's gre5h\se gas effects 7z 
def9$ 9 section #iijg ( ! ,int]nal      
,rev5ue ,code ( #aihf74  4  7d7 ,nonroad
 eng9es & vehicles emissions /&>ds      
,section #bac ( ! ,clean ,air ,act 7#db 
,u4,s4,c4 #gedg7 is am5d$ by add+ at !  
end ! foll[+3  7e7 ,gre5h\se gas        
emissions ,not)/&+ subsections 7a7 & 7b7
 ( section #ccj1 ! ,adm9i/rator may     
limit ! emission ( any gre5h\se gas 7z  
def9$ 9 section #iijg ( ! ,int]nal      
,rev5ue ,code ( #aihf7 on ! basis ( !   
emission's gre5h\se gas effects 7z def9$
 9 section #iijg ( ! ,int]nal ,rev5ue   
,code ( #aihf7 f any nonroad eng9es &   
nonroad vehicles subject to regulation  
"u ?is section4  4  7e7 ,aircraft       

emission /&>ds ,section #bca ( ! ,clean 
,air ,act 7#db ,u4,s4,c4 #geg7 is am5d$ 
by add+ at ! end ! foll[+ new           
subsection3  7d7 ,not)/&+ subsections   
7a7 & 7b7 ( section #ccj1 ! ,adm9i/rator
 may limit ! emission ( any gre5h\se gas
 7z def9$ 9 section #iijg ( ! ,int]nal  
,rev5ue ,code ( #aihf7 on ! basis ( !   
emission's gre5h\se gas effects 7z def9$
 9 section #iijg ( ! ,int]nal ,rev5ue   
,code ( #aihf7 f any class or classes ( 
aircraft eng9es1 s long z any su*       
limitation is n m /r+5t ?an ! /&>ds     
adopt$ by ! ,int]national ,civil        
,aviation ,organization4  4