,i #aafth ,,congress #ast ,session ,h4 ,r4 #gfc ,,in ,,the ,,house ,,of ,,representatives ,january #bd1 #bjai ,mr4 ,deutch 7for himself1 ,mr4 ,lipinski1 ,mr4 ,crist1 ,mr4 ,peters1 ,ms4 ,eshoo1 ,ms4 ,judy ,chu of ,california1 and ,mr4 ,rooney of ,florida7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means1 and in addition to the ,committees on ,energy and ,commerce1 and ,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 create a ,carbon ,dividend ,trust ,fund for the ,american people in order to encourage market-driven innovation of clean energy technologies and market efficiencies which will reduce harmful pollution and leave a healthier1 more stable1 and more prosperous nation for future generations4 #a4 ,short title ,this ,act may be cited as the ,energy ,innovation and ,carbon ,dividend ,act of #bjai4 #b4 ,findings ,the ,congress finds that-- 7#a7 efficient markets strengthen our economy and benefit our ,nation by encouraging competition1 innovation1 and technological progress2 7#b7 efficient markets should reflect all costs of goods to ensure that they advance ,america's prosperity and national interests2 7#c7 emissions of carbon pollution and other harmful pollutants into our ,nation's air impose substantial costs on all ,americans and on future generations2 and 7#d7 creation of a ,carbon ,dividend ,trust ,fund1 to be distributed to the ,american people1 will make markets more efficient1 create jobs1 and stimulate competition1 innovation1 and technological progress that benefit all ,americans and future generations4 #c4 ,carbon dividends and carbon fee 7a7 ,in general ,the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subtitle3 ,l ,,carbon ,,dividends ,,and ,,carbon ,,fee ,chapter #aja4 ,carbon ,fees4 ,chapter #ajb4 ,carbon ,border ,fee ,adjustment4 #aja ,carbon ,fees ,sec4 #iija4 ,definitions4 ,sec4 #iijb4 ,carbon fee4 ,sec4 #iijc4 ,emissions reduction schedule4 ,sec4 #iijd4 ,fee on fluorinated greenhouse gases4 ,sec4 #iije4 ,decommissioning of ,carbon ,administration4 ,sec4 #iijf4 ,carbon ,capture and ,sequestration4 ,sec4 #iijg4 ,administrative authority4 #iija4 ,definitions ,for purposes of this subtitle3 7a7 ,administrator ,the term ,administrator means the ,administrator of the ,environmental ,protection ,agency4 7b7 ,carbon dioxide equivalent or ,,co#b-;e ,the term carbon dioxide equivalent or ,,co#b-;e means the number of metric tons of carbon dioxide emissions with the same global warming potential as one metric ton of another greenhouse gas4 7c7 ,carbon-,intensive product ,the term carbon-intensive product means1 as identified by the ,secretary by rule-- 7#a7 any manufactured or agricultural product which the ,secretary in consultation with the ,administrator determines is emissions-intensive and trade-exposed1 except that no covered fuel is a carbon-intensive product1 and 7#b7 until such time that the ,secretary promulgates rules identifying carbon-intensive products1 the following shall be considered carbon-intensive products3 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 ceramics4 7d7 ,carbon leakage ,the term carbon leakage means an increase of global greenhouse gas emissions which are substantially due to the relocation of greenhouse gas sources from the ,united ,states to jurisdictions which lack comparable controls upon greenhouse gas emissions4 7e7 ,cost of carbon or carbon costs ,the term cost of carbon or carbon costs means a national or sub-national government policy which explicitly places a price on greenhouse gas pollution and shall be limited to either a tax on greenhouse gases or a system of cap-and-trade4 ,the cost of carbon is expressed as the price per metric ton of ,,co#b-;e4 7f7 ,covered entity ,the term covered entity means-- 7#a7 in the case of crude oil-- 7,a7 a refinery operating in the ,united ,states1 and 7,b7 any importer of any petroleum or petroleum product into the ,united ,states1 7#b7 in the case of coal-- 7,a7 any coal mining operation in the ,united ,states1 and 7,b7 any importer of coal into the ,united ,states1 7#c7 in the case of natural gas-- 7,a7 any entity entering pipeline quality natural gas into the natural gas transmission system1 and 7,b7 any importer of natural gas into the ,united ,states1 7#d7 in the case of fluorinated gases any entity required to report the emission of a fluorinated gas under part #ih of title #dj1 ,code of ,federal ,regulations1 and 7#e7 any entity or class of entities which1 as determined by the ,secretary1 is transporting1 selling1 or otherwise using a covered fuel in a manner which emits a greenhouse gas to the atmosphere and which has not been covered by the carbon fee1 the fluorinated greenhouse gas fee1 or the carbon border fee adjustment4 7g7 ,covered fuel ,the term covered fuel means crude oil1 natural gas1 coal1 or any other product derived from crude oil1 natural gas1 or coal which shall be used so as to emit greenhouse gases to the atmosphere4 7h7 ,crude oil ,the term crude oil means unrefined petroleum4 7i7 ,export ,the term export means to transport a product from within the jurisdiction of the ,united ,states to persons outside the ,united ,states4 7j7 ,fluorinated greenhouse gas ,the term fluorinated greenhouse gas means sulfur hexafluoride 7,,sf#f71 nitrogen trifluoride 7,,nf#c71 and any fluorocarbon except for controlled substances as defined in subpart ,a of part #hb of title #dj1 ,code of ,federal ,regulation1 and substances with vapor pressures of less than #a mm of ,hg absolute at #be degrees4 ,with these exceptions1 fluorinated greenhouse gas includes but is not limited to any hydrofluorocarbon1 any perfluorocarbon1 any fully fluorinated linear1 branched or cyclic alkane1 ether1 tertiary amine or aminoether1 any perfluoropolyether1 and any hydrofluoropolyether4 7k7 ,fossil fuel ,the term fossil fuel means coal1 coal products1 petroleum1 petroleum products1 or natural gas4 7l7 ,full fuel cycle greenhouse gas emissions ,the term full fuel cycle greenhouse gas emissions means the greenhouse gas content of a covered fuel plus that covered fuel's upstream greenhouse gas emissions4 7m7 ,global warming potential ,the term global warming potential means the ratio of the time-integrated radiative forcing from the instantaneous release of one kilogram of a trace substance relative to that of one kilogram of carbon dioxide4 7n7 ,greenhouse gas ,the term greenhouse gas means carbon dioxide 7,,co#b71 methane 7,,ch#d71 nitrous oxide 7,n#b,o71 sulfur hexafluoride 7,,sf#f71 hydrofluorocarbons 7,h,f,cs71 perfluorocarbon 7,p,f,cs71 and other gases as defined by rule of the ,administrator4 7o7 ,greenhouse gas content ,the term greenhouse gas content means the amount of greenhouse gases1 expressed in metric tons of ,,co#b-;e1 which would be emitted to the atmosphere by the use of a covered fuel and shall include1 nonexclusively1 emissions of carbon dioxide 7,,co#b71 nitrous oxide 7,n#b,o71 methane 7,,ch#d71 and other greenhouse gases as identified by rule of the ,administrator4 7p7 ,greenhouse gas effect ,the term greenhouse gas effect means the adverse effects of greenhouse gases on health or welfare caused by the greenhouse gas's heat-trapping potential or its effect on ocean acidification4 7q7 ,import ,irrespective of any other definition in law or treaty1 the term import means to land on1 bring into1 or introduce into any place subject to the jurisdiction of the ,united ,states4 7r7 ,petroleum ,the term petroleum means oil removed from the earth or the oil derived from tar sands or shale4 7s7 ,production greenhouse gas emissions ,the term production greenhouse gas emissions means the quantity of greenhouse gases1 expressed in metric tons of ,,co#b-;e1 emitted to the atmosphere resulting from1 nonexclusively1 the production1 manufacture1 assembly1 transportation1 or financing of a product4 7t7 ,upstream greenhouse gas emissions ,the term upstream greenhouse gas emissions means the quantity of greenhouse gases1 expressed in metric tons of ,,co#b-;e1 emitted to the atmosphere resulting from1 nonexclusively1 the extraction1 processing1 transportation1 financing1 or other preparation of a covered fuel for use4 #iijb4 ,carbon fee 7a7 ,carbon fee ,there is hereby imposed a carbon fee on any covered entity's emitting use1 or sale or transfer for an emitting use1 of any covered fuel4 7b7 ,amount of the carbon fee ,the carbon fee imposed by this section is an amount equal to-- 7#a7 the greenhouse gas content of the covered fuel1 multiplied by 7#b7 the carbon fee rate4 7c7 ,carbon fee rate ,for purposes of this section-- 7#a7 ,in general ,the carbon fee rate1 with respect to any use1 sale1 or transfer during a calendar year1 shall be-- 7,a7 in the case of calendar year #bjai1 #ae1 and 7,b7 except as provided in paragraph 7#b71 in the case of any calendar year thereafter-- 7i7 the carbon fee rate in effect under this subsection for the preceding calendar year1 plus 7ii7 #aj4 7#b7 ,exceptions 7,a7 ,increased carbon fee rate after missed annual emissions reduction target ,in the case of any year immediately following a year for which the ,secretary determines under #iijc7;b7 that the actual emissions of greenhouse gases from covered fuels exceeded the emissions reduction target for the previous year1 paragraph 7#a77;,b77ii7 shall be applied by substituting #ae for the dollar amount otherwise in effect for the calendar year under such paragraph4 7,b7 ,cessation of carbon fee rate increase after certain emission reductions achieved ,in the case of any year immediately following a year for which the ,secretary determines under #iijc7;b7 that actual emissions of greenhouse gases from covered fuels is not more than #aj percent of the greenhouse gas emissions from covered fuels during the year #bjaf1 paragraph 7#a77;,b77ii7 shall be applied by substituting #j for the dollar amount otherwise in effect for the calendar year under such paragraph4 7#c7 ,inflation adjustment ,in the case of any calendar year after #bjai1 each of the dollar amounts in paragraphs 7#a77;,a71 7#a77;,b77ii71 and 7#b77;,a7 shall be increased by an amount equal to-- 7,a7 such dollar amount1 multiplied by 7,b7 the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year1 determined by substituting calendar year #bjah for calendar year #bjaf in subparagraph 7,a77ii7 thereof4 7d7 ,exemption and refund ,the ,secretary shall prescribe such rules as are necessary to ensure the fee imposed by this section is not imposed with respect to any nonemitting use1 or any sale or transfer for a nonemitting use1 including rules providing for the refund of any carbon fee paid under this section with respect to any such use1 sale1 or transfer4 7e7 ,exemptions 7#a7 ,agriculture 7,a7 ,fuel ,if any covered fuel or its derivative is used on a farm for a farming purpose1 the ,secretary shall pay 7without interest7 to the ultimate purchaser of such covered fuel or its derivative1 the total amount of carbon fees previously paid upon that covered fuel or its derivative1 as specified by rule of the ,secretary4 7,b7 ,farm1 farming use1 and farming purpose ,the terms farm1 farming use1 and farming purpose shall have the respective meanings given such terms under section #fdbj7;c74 7,c7 ,other greenhouse gases emissions from agriculture ,the carbon fee shall not be levied upon non-fossil fuel greenhouse gas emissions which occur on a farm4 7#b7 ,armed ,forces of the ,united ,states ,if any covered fuel or its derivative is used by the ,armed ,forces of the ,united ,states as supplies for vessels of war1 vehicles1 or electrical power generation equipment1 the ,secretary shall pay 7without interest7 to the ultimate purchaser of such covered fuel or its derivative1 the total amount of carbon fees previously paid upon that covered fuel or its derivative1 as specified by rule of the ,secretary4 #iijc4 ,emissions reduction schedule 7a7 ,in general ,an emissions reduction schedule for greenhouse gas emissions from covered fuels is hereby established1 as follows3 7#a7 ,reference year ,the greenhouse gas emissions from covered fuels during the year #bjaf shall be the reference amount of emissions and shall be determined from the ,inventory of ,u4,s4 ,greenhouse ,gas ,emissions and ,sinks3 #aiij-bjaf published by the ,environmental ,protection ,agency in ,april of #bjah4 7#b7 ,emissions reduction target ,the first emission reduction target shall be for the year #bjbb4 ,the emission target for each year thereafter shall be the previous year's target emissions minus a percentage of emissions during the reference year determined in accordance with the following table3 ,year,emissions ,reduction ,target #bjaf,reference year #bjbj to #bjbd,no emissions reduction target #bjbe to #bjcde percent of #bjaf emissions per year #bjce to #bjejb4e percent of #bjaf emissions per year 7b7 ,administrative determination ,not later than #fj days after the beginning of each calendar year beginning after the enactment of this section1 the ,secretary1 in consultation with the ,administrator1 shall determine whether actual emissions of greenhouse gases from covered fuels exceeded the emissions reduction target for the preceding calendar year4 ,the ,secretary shall make such determination using the same greenhouse gas accounting method as was used to determine the greenhouse gas emissions in the ,inventory of ,u4,s4 ,greenhouse ,gas ,emissions and ,sinks3 #aiij-bjaf published by the ,environmental ,protection ,agency in ,april of #bjah4 #iijd4 ,fee on fluorinated greenhouse gases 7a7 ,fluorinated gas fee ,a fee is hereby imposed upon any fluorinated greenhouse gas which is required to be reported under part #ih of title #dj1 ,code of ,federal ,regulations4 7b7 ,amount ,the fee to be paid by the covered entity required to so report shall be an amount equal to-- 7#a7 the total amount1 in metric tons of ,,co#b-;e1 of emitted fluorinated greenhouse gases 7or1 in the case of a supplier1 emissions that would result determined under the rules of such part71 multiplied by 7#b7 an amount equal to #aj percent of the carbon fee rate in effect under section #iijb7;d77#a7 for the calendar year of such emission4 #iije4 ,decommissioning of carbon fee 7a7 ,in general ,at such time that-- 7#a7 the ,secretary determines under #iijc7;b7 that actual emissions of greenhouse gases from covered fuels is not more than #aj percent of the greenhouse gas emissions from covered fuels during the year #bjaf1 and 7#b7 the monthly carbon dividend payable to an adult eligible individual has been less than #bj for #c consecutive years1 the ,secretary shall decommission in an orderly manner all bureaus and programs associated with administering the carbon fee1 the carbon border fee adjustment1 and the ,carbon ,dividend ,trust ,fund4 7b7 ,inflation adjustment ,in the case of any calendar year after #bjbj1 the #bj amount under subsection 7a77#b7 shall be increased by an amount equal to-- 7#a7 such dollar amount1 multiplied by 7#b7 cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year1 determined by substituting calendar year #bjag for calendar year #bjaf in subparagraph 7,a77ii7 thereof4 #iijf4 ,carbon ,capture and ,sequestration 7a7 ,in general ,the ,secretary1 in consultation with the ,administrator and the ,secretary of ,energy1 shall prescribe regulations for making payments as provided in subsection 7b7 to qualified facilities which capture and sequester qualified carbon dioxide4 7b7 ,payment amounts 7#a7 ,in general ,the ,secretary shall make payments to a qualified facility in the same manner as if such payment was a refund of an overpayment of the carbon fee imposed by section #iijb1 in cases in which such qualified facility-- 7,a7 uses any covered fuel-- 7i7 with respect to which the carbon fee has been paid1 and 7ii7 which results in the emission of qualified carbon dioxide1 7,b7 captures such emitted qualified carbon dioxide1 and 7,c7 7i7 sequesters such qualified carbon dioxide in a manner which is safe1 permanent1 and in compliance with any applicable local1 ,state1 and ,federal laws1 or 7ii7 utilizes such qualified carbon dioxide in a manner provided in paragraph 7#c77;,c74 7#b7 ,amount of refund ,the payment determined under this section shall be an amount equal to the lesser of-- 7,a7 7i7 the adjusted metric tons of qualified carbon dioxide captured and sequestered or utilized1 multiplied by 7ii7 the carbon fee rate during the year in which the carbon fee was imposed by section #iijb upon the covered fuel to which such carbon dioxide relates1 or 7,b7 the amount of the carbon fee imposed by section #iijb with respect to such covered fuel4 7#c7 ,definitions and special rules ,for purposes of this section-- 7,a7 ,qualified carbon dioxide2 qualified facility 7i7 ,qualified carbon dioxide ,the term qualified carbon dioxide has the same meaning given such term under section #de,q7b74 7ii7 ,qualified facility ,the term qualified facility means any industrial facility at which carbon capture equipment is placed in service4 7,b7 ,adjusted total metric tons ,the adjusted total metric tons of qualified carbon dioxide captured and sequestered or utilized shall be the total metric tons of qualified carbon dioxide captured and sequestered or utilized1 reduced by the amount of any carbon dioxide likely to escape and be emitted into the atmosphere due to imperfect storage technology or otherwise1 as determined by the ,secretary in consultation with the ,administrator4 7,c7 ,utilization ,the ,secretary1 in consultation with the ,administrator1 shall establish regulations providing for the methods and processes by which qualified carbon dioxide may be utilized so as to remove that qualified dioxide safely and permanently from the atmosphere4 ,utilization may include the production of substances such as but not limited to plastics and chemicals4 ,such regulations shall minimize the escape or further emission of the qualified carbon dioxide into the atmosphere4 7,d7 ,sequestration ,not later #edj days after the date of the enactment of this section1 the ,secretary1 in consultation with the ,administrator1 shall prescribe regulations identifying the conditions under which carbon dioxide may be safely and permanently sequestered4 7#d7 ,coordination with credit for carbon dioxide sequestration ,at such time that the ,secretary prescribes regulations implementing this section1 no payment under this section shall be allowed to a taxpayer to whom a credit has been allowed for any taxable year under section #de,q4 #iijg4 ,administrative authority 7a7 ,in general ,the ,secretary in consultation with the ,administrator shall prescribe such regulations1 and other guidance1 as may be necessary to carry out the purposes of this subtitle and assess and collect the carbon fee imposed by section #iijb and the fluorinated greenhouse gas fee imposed by section #iijd4 7b7 ,specifically ,such regulations and guidance shall include-- 7#a7 the identification of an effective point in the production1 distribution1 or use of a covered fuel or fluorinated greenhouse gas for collecting such carbon fee or fluorinated greenhouse gas fee1 in such a manner so as to minimize administrative burden and maximize the extent to which full fuel cycle greenhouse gas emissions from covered fuels or fluorinated greenhouse gases have the carbon fee or fluorinated greenhouse gas fee levied upon them1 7#b7 the identification of covered entities which shall be liable for the payment of the carbon fee or the fluorinated greenhouse gas fee1 7#c7 requirements for the monthly payment of such fees1 7#d7 as may be necessary or convenient1 rules for distinguishing between different types of covered fuels1 7#e7 as may be necessary or convenient1 rules for distinguishing between a covered fuel's greenhouse gas content and its upstream greenhouse gas emissions1 7#f7 rules to ensure that no covered fuel or fluorinated greenhouse gas has the carbon fee1 fluorinated greenhouse gas fee1 or carbon border fee adjustment imposed upon it more than once1 and 7#g7 rules to ensure that the domestic implementation of the carbon fee and the fluorinated greenhouse gas fee coordinate with the implementation of the carbon border fee adjustment of chapter #ajb4 #ajb ,carbon ,border ,fee ,adjustment ,sec4 #iijh4 ,carbon border fee adjustment4 ,sec4 #iiji4 ,administration of the carbon border fee adjustment4 ,sec4 #iiaj4 ,allocation of carbon border fee adjustment revenues4 #iijh4 ,carbon border fee adjustment 7a7 ,in general ,the fees imposed by1 and refunds allowed under1 this section shall be referred to as the carbon border fee adjustment4 7b7 ,purpose ,the purpose of the carbon border fee adjustment is to protect animal1 plant1 and human life and health1 to conserve exhaustible natural resources by preventing carbon leakage1 and to facilitate the creation of international agreements4 7c7 ,imported covered fuels fee ,in the case of any person that imports into the ,united ,states any covered fuel1 there shall be imposed a fee equal to the excess 7if any7 of-- 7#a7 an amount equal to-- 7,a7 the amount of full fuel cycle greenhouse gas emissions of such fuel1 multiplied by 7,b7 the carbon fee rate in effect for the year in which such fuel is imported1 over 7#b7 the total foreign cost of carbon carried by such fuel4 7d7 ,imported carbon-,intensive products fee ,in the case of any person that imports into the ,united ,states any carbon-intensive products1 there shall be imposed a fee equal to the excess 7if any7 of-- 7#a7 an amount equal to-- 7,a7 production greenhouse gas emissions of such product1 multiplied by 7,b7 the carbon fee rate in effect for the year in which the production greenhouse gas emissions of such product were emitted into the atmosphere1 over 7#b7 the total foreign cost of carbon carried by such product4 7e7 ,refund on exports from ,united ,states 7#a7 ,carbon-intensive products ,under regulations prescribed by the ,secretary1 there shall be allowed a credit or refund 7without interest7 to exporters of carbon-intensive products manufactured or produced in the ,united ,states an amount equal to the excess 7if any7 of-- 7,a7 an amount equal to-- 7i7 the production greenhouse gas emissions of the exported carbon-intensive product1 multiplied by 7ii7 the carbon fee rate during the year in which the carbon fee or fluorinated greenhouse gas fee was paid upon the production greenhouse gas emissions of the exported carbon-intensive product1 over 7,b7 any total cost of carbon to be levied upon the carbon-intensive product by any jurisdiction to which the carbon-intensive product is to be imported4 ,any such credit or refund shall be allowed in the same manner as if it were an overpayment of the fee imposed by section #iijb or #iijd4 ,the ,secretary shall establish fair1 timely1 impartial1 and as necessary confidential procedures by which any exporter of any product from the ,united ,states may petition the ,secretary to include that exported product on the list of carbon-intensive products4 7#b7 ,covered fuels ,under regulations prescribed by the ,secretary1 in the case of a covered fuel produced in the ,united ,states with respect to which the fee under section #iijb was paid1 there shall be allowed as a credit or refund 7without interest7 to any exporter of such covered fuels an amount equal to the excess 7if any7 of-- 7,a7 an amount equal to-- 7i7 the full fuel cycle greenhouse gas emissions of the covered fuel1 multiplied by 7ii7 the carbon fee rate at the time the carbon fee was paid upon the full fuel cycle greenhouse gas emissions of the exported covered fuel1 over 7,b7 any total cost of carbon to be levied upon the covered fuel by a jurisdiction to which the carbon-intensive product is to be imported4 ,any such credit or refund shall be allowed in the same manner as if it were an overpayment of tax imposed by section #iijb4 7f7 ,definitions ,for purposes of this section-- 7#a7 ,foreign cost of carbon2 foreign carbon costs ,the term foreign cost of carbon or foreign carbon cost means the cost of any laws of a foreign jurisdiction which impose a system of cap-and-trade with respect to1 or a tax or fee on1 greenhouse gas4 ,such cost shall be determined and expressed as a price per metric ton of ,,co#b-;e4 7#b7 ,total cost of carbon carried ,the term total cost of carbon carried means an amount equal to-- 7,a7 the production greenhouse gas emissions of a carbon-intensive product or the full fuel cycle greenhouse gas emissions of a covered fuel1 multiplied by 7,b7 the cost of carbon with respect to such product or fuel1 reduced by any amount refunded with respect to such product or fuel by a foreign jurisdiction4 ,the total cost of carbon carried shall be expressed as price in ,united ,states dollars4 7#c7 ,total foreign cost of carbon carried ,the term total foreign cost of carbon carried means an amount equal to-- 7,a7 the production greenhouse gas emissions of a carbon-intensive product1 or the full fuel cycle greenhouse gas emissions of a covered fuel1 multiplied by 7,b7 the foreign cost of carbon with respect to such product or fuel1 reduced by the amount refunded with respect to such product or fuel by a foreign jurisdiction4 ,the total foreign cost of carbon carried shall be expressed as price in ,united ,states dollars4 #iiji4 ,administration of the carbon border fee adjustment 7a7 ,generally ,the ,secretary in consultation with the ,administrator shall prescribe regulations and guidance which implement the carbon border fee adjustment under section #iijh4 7b7 ,collaboration ,in determining the production greenhouse gas emissions of an imported carbon-intensive product1 the upstream greenhouse gas emissions of an imported covered fuel1 the full fuel cycle greenhouse gas emissions of an imported covered fuel1 or the foreign cost of carbon1 or otherwise administering the carbon border fee adjustment1 it is the sense of ,congress that the ,secretary should collaborate with authorized officers of any jurisdiction1 including sub-national governments1 affected by the carbon border fee adjustment4 7c7 ,methodology ,in determining the production greenhouse gas emissions of an imported carbon-intensive product1 the upstream greenhouse gas emissions of an imported covered fuel1 the full fuel cycle greenhouse gas emissions of an imported covered fuel1 or the foreign cost of carbon1 the ,secretary shall use reliable methodologies1 which-- 7#a7 as may be necessary or convenient-- 7,a7 distinguish between different types of covered fuels1 7,b7 distinguish between a covered fuel's greenhouse gas content and that covered fuel's upstream greenhouse gas emissions1 7,c7 distinguish between the different types of greenhouse gas emissions which compose a covered fuel's upstream greenhouse gas emissions or greenhouse gas content1 as well as the various processes which produced those emissions1 and 7,d7 distinguish between the different types of greenhouse gas emissions which compose a carbon-intensive product's production greenhouse gas emissions1 as well as the various processes which produced those emissions1 7#b7 ensure that no covered fuel1 covered fluorinated greenhouse gas1 or carbon-intensive product has the carbon fee1 the fluorinated greenhouse gas fee1 or the border fee adjustment imposed upon it more than once1 7#c7 ensure that the implementation of the border carbon adjustment aligns with the carbon fee and the fluorinated gas fee1 7#d7 in the case of incomplete data1 rely upon the best available methodologies for interpolating data gaps1 and 7#e7 are consistent with international treaties and agreements4 7d7 ,schedule ,the ,secretary shall determine-- 7#a7 not later than #c years after the date of the enactment of this section1 the production greenhouse gas emissions of imported carbon-intensive products1 7#b7 not later than #ahj days after the date of the enactment of this section1 the full fuel cycle greenhouse gas emissions and the upstream greenhouse gas emissions of every imported covered fuel1 and 7#c7 not later than #c years after the date of the enactment of this section1 the foreign cost of carbon in all jurisdictions4 7e7 ,procedure ,the ,secretary shall establish fair1 timely1 impartial1 and as necessary confidential procedures by which the importer of any carbon-intensive product or any covered fuel may petition the ,secretary to revise the ,secretary's determination of the production greenhouse gas emissions1 full fuel cycle greenhouse gas emissions1 or upstream greenhouse gas emissions of that importer's imported covered fuel or imported carbon-intensive product1 or the foreign cost of carbon carried by that importer's imported carbon-intensive product4 7f7 ,shipments from the ,united ,states to the territories of the ,united ,states ,notwithstanding any other treaty1 law1 or policy1 shipments of covered fuels or carbon-intensive products from the ,united ,states to ,guam1 the ,united ,states ,virgin ,islands1 ,samoa1 ,puerto ,rico1 and the ,northern ,mariana ,islands shall be eligible for a refund of the carbon fee under section #iijh7;e74 7g7 ,imports to the territories of the ,united ,states ,notwithstanding any other treaty1 law1 or policy1 imports of covered fuels or carbon-intensive products to ,guam1 the ,united ,states ,virgin ,islands1 ,samoa1 ,puerto ,rico1 and the ,northern ,mariana ,islands shall not be subject to ,section #iijh7;c7 or #iijh7;d740 #iiaj4 ,allocation of carbon border fee adjustment revenues ,the revenues collected under this chapter may be used to supplement appropriations made available in fiscal years #bjbj and thereafter-- 7#a7 to ,u4,s4 ,customs and ,border ,protection1 in such amounts as are necessary to administer the carbon border fee adjustment1 then 7#b7 to the ,department of ,treasury1 in such amounts as are necessary to allow refunds under section #iijh7;e7 to exporters of carbon-intensive products and exporters of covered fuels4 4 7b7 ,coordination with carbon oxide sequestration credit ,section #de,q7f7 is amended by adding at the end the following new paragraph3 7#h7 ,coordination with carbon capture and sequestration payments ,no credit shall be allowed under this section to a taxpayer which has received any payment under section #iijf4 4 7c7 ,treaties and international negotiations 7#a7 ,conformance with international treaties ,in the case that the ,appellate ,body of the ,world ,trade ,organization1 or any other authoritative international treaty interpreter1 shall find any portion of the carbon border fee adjustment under chapter #ajb of the ,internal ,revenue ,code of #aihf to violate any treaty to which the ,united ,states is a party1 the ,secretary of the ,treasury is authorized to alter any aspect of such carbon border fee adjustment so as to bring the carbon border fee adjustment into conformance with international law4 7#b7 ,international negotiations ,the ,congress finds the international mitigation of greenhouse gas emissions to be of national importance4 ,therefore1 the ,congress encourages the ,secretary of ,state1 or the ,secretary's designee1 to commence and complete negotiations with other nations with the goal of forming treaties1 environmental agreements1 accords1 partnerships or any other instrument that effectively reduces global greenhouse gas emissions to #aj percent of #bjaf levels by #bjej and which respect the principle of common but differentiated responsibilities and respective capabilities4 7#c7 ,suspension of the carbon border fee adjustment ,any part of the carbon border fee adjustment shall be suspended1 in whole or in part1-- 7,a7 by treaty or other international agreement which includes provisions for the suspension of the carbon border fee adjustment1 in whole or in part1 with any party signatory to the treaty or other international agreement1 or 7,b7 by a finding of the ,secretary that a jurisdiction of importation has implemented policies which1 in the case of high emitting countries1 reduce greenhouse gas emissions at a rate at least equivalent to ,united ,states greenhouse gas emission reductions1 or1 in the case of low emitting countries1 prevent the increase in greenhouse gas emissions4 ,any such finding shall be reviewed at least every #c years and amended or revoked as required4 #d4 ,establishment of the ,carbon ,dividend ,trust ,fund 7a7 ,in general ,subchapter ,a of chapter #ih of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following3 #ieab4 ,carbon ,dividend ,trust ,fund 7a7 ,establishment and funding ,there is hereby established in the ,treasury of the ,united ,states a trust fund to be known as the ,carbon ,dividend ,trust ,fund1 consisting of such amounts as may be appropriated to such trust fund as provided for in this section4 7b7 ,transfers to the ,carbon ,dividend ,trust ,fund ,there is hereby appropriated to the ,carbon ,dividend ,trust ,fund amounts equal to the fees received into the ,treasury less any amounts refunded or paid under section #iijb7;d7 or #iijf of chapter #aja for each month4 7c7 ,expenditures ,amounts in the trust fund shall be available for the following purposes3 7#a7 ,administrative expenses ,so much of the expenses necessary to administer the ,carbon ,dividend ,trust ,fund for each year1 as does not exceed-- 7,a7 in the case of the first #e calendar years ending after the date of the enactment of this section1 the administrative expenses for any year may not exceed #h percent of amounts appropriated to the ,carbon ,dividend ,trust ,fund during such year1 and 7,b7 in the case of any calendar year thereafter1 #b percent of the #e-year rolling average of the amounts appropriated to the ,carbon ,dividend ,trust ,fund1 and 7#b7 ,other administrative expenses ,so much of the expenses as are necessary to administer chapter #aja for any year as does not to exceed #j4fj percent of the amounts appropriated to the ,carbon ,dividend ,trust ,fund for the previous year1 and further limited as follows3 7,a7 ,the ,department of the ,treasury4 7,b7 ,the ,social ,security ,administration4 7,c7 ,the ,environmental ,protection ,agency4 7,d7 ,department of ,state4 7#c7 ,carbon dividend payments 7,a7 ,in general ,from the amounts in the ,carbon ,dividend ,trust ,fund made available under paragraphs 7#a7 and 7#b7 of this subsection for any year1 the ,secretary shall for each month beginning more than #bgj days after the date of the enactment of the ,energy ,innovation and ,carbon ,dividend ,act of #bjai1 make carbon dividend payments to each eligible individual4 7,b7 ,pro-rata share ,a carbon dividend payment is one pro-rata share for each adult1 and half a pro-rata share for each child under #ai years old1 of amounts available for the month in the ,carbon ,dividend ,trust ,fund4 7,c7 ,eligible individual ,the term eligible individual means1 with respect to any month1 any natural living person who has a valid ,social ,security number or taxpayer identification number and is a citizen or lawful resident of the ,united ,states 7other than any individual who is a citizen of any possession of the ,united ,states and whose bona fide residence is outside of the ,united ,states74 ,the ,secretary is authorized to verify an individual's eligibility to receive a carbon dividend payment4 7,d7 ,fee treatment of payments ,amounts paid under this subsection shall be includible in gross income4 7,e7 ,federal programs and ,federal assisted programs ,the carbon dividend amount received by any individual shall not be taken into account as income and shall not be taken into account as resources for purposes of determining the eligibility of such individual or any other individual for benefits or assistance1 or the amount or extent of benefits or assistance1 under any ,federal program or under any ,state or local program financed in whole or in part with ,federal funds4 7,f7 ,advance payment ,the ,secretary shall transfer to the ,carbon ,dividend ,trust ,fund such amounts as are necessary for the disbursement of an advanced carbon dividend to all eligible individuals as follows3 7i7 ,an advanced carbon dividend shall be the same as the anticipated first carbon dividend required to be distributed under subparagraph 7,a7 and shall be distributed the month prior to the first collection of the carbon fee4 7ii7 ,total amounts disbursed as advanced carbon dividends shall be deducted from the carbon dividends on a pro-rata basis over the first #c years after the disbursement of the first carbon dividends4 7d7 ,administrative authority ,the ,secretary shall promulgate rules1 guidance1 and regulations useful and necessary to implement the ,carbon ,dividend ,trust ,fund4 4 7b7 ,clerical amendment ,the table of sections for subchapter ,a of chapter #ih of such ,code is amended by adding at the end the following new item3 ,sec4 #ieab4 ,carbon ,dividend ,trust ,fund4 4 #e4 ,limited disclosure of information ,section #fajc7l7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new paragraphs3 7#bc7 ,limited disclosure of identity information relating to carbon dividend payments 7,a7 ,department of ,treasury ,individual identity information shall1 without written request1 be open to inspection by or disclosure to officers and employees of the ,department of the ,treasury whose official duties require such inspection or disclosure for purposes of administering section #ieab 7relating the ,carbon ,dividend ,trust ,fund74 7,b7 ,commissioner of ,social ,security ,the ,commissioner of ,social ,security shall1 on written request1 disclose to officers and employees of the ,department of the ,treasury individual identity information which has been disclosed to the ,social ,security ,administration as is necessary to administer section #ieab4 7,c7 ,restriction on disclosure ,information disclosed under this paragraph shall be disclosed only for purposes of1 and to the extent necessary in1 carrying out section #ieab4 4 #f4 ,national ,academy of ,sciences review of carbon fee and emissions reduction schedule 7a7 ,in general ,not later than #aj years after the date of the enactment of this ,act1 the ,secretary of ,energy shall enter into an agreement with the ,national ,academy of ,sciences to prepare a report relating to the carbon fee imposed by section #iijb of the ,internal ,revenue ,code of #aihf and the emissions reductions schedule established under section #iijc of such ,code4 7b7 ,report requirements ,such report shall-- 7#a7 assess the efficiency and effectiveness of the carbon fee in achieving the emissions reduction targets set forth in section #iijc of such ,code2 7#b7 describe and make recommendations on whether the carbon fee rate and annual increases prescribed by section #iijb7;c7 of such ,code should be adjusted in order to optimize the efficiency and effectiveness of this ,act in achieving the emissions reduction targets set forth in section #iijc of such ,code2 7#c7 describe the potential of the carbon fee to achieve future emissions targets set forth in section #iijc7;a7 of such ,code through the year #bjej2 7#d7 describe and evaluate the effectiveness of the carbon fee in reducing emissions from key sectors of the economy1 including sectors of the economy that have decreased their carbon emissions1 sectors of the economy that have increased their carbon emissions1 and sectors of the economy in which carbon emissions have not changed2 7#e7 make findings and recommendations to ,federal departments and agencies and to ,congress on actions that could be taken to reduce carbon emissions in the sectors of the economy in which carbon emissions have not decreased2 7#f7 make findings and recommendations on adjusting regulations enacted under the ,clean ,air ,act and other ,federal laws that affect economic sectors achieving the emissions reduction targets set forth in section #iijc of such ,code2 and 7#g7 provide an assessment of any other factors determined to be material to the program's efficiency and effectiveness in achieving the goals set forth in this act4 7c7 ,report made publicly available ,not later than #aj years after the date of the enactment of this ,act1 the ,secretary of ,energy shall submit to ,congress the report required under subsection 7a74 ,such report shall be made electronically available to the public and open to public comment for at least #fj days before the final submission to ,congress4 #g4 ,impact of carbon fee on biomass use and carbon sinks 7a7 ,study of biomass ,the ,secretary of ,energy shall enter into an agreement with the ,national ,academy of ,sciences and the ,administrator of the ,environmental ,protection ,agency to conduct a study1 make recommendations1 and submit a report regarding the impact of the carbon fee on the use of biomass as an energy source and the resulting impacts on carbon sinks and biodiversity4 7b7 ,study requirements ,the study conducted under subsection 7a7 by the ,national ,academy of ,sciences shall include analysis1 documentation1 and determinations on-- 7#a7 the carbon fee and its impact on the use of biomass as an energy source and greenhouse gas emissions from the use of biomass as an energy source2 7#b7 the impacts of the use of biomass as an energy source on carbon sinks and biodiversity2 and 7#c7 the various types of biomass that are being used as an energy source4 7c7 ,recommendations ,based on the findings and conclusions of the study1 the ,national ,academy of ,sciences shall make recommendations to ,federal departments and agencies and to ,congress4 ,the recommendations shall include any actions that should be taken to mitigate impacts of the carbon fee on-- 7#a7 increasing greenhouse gas emissions from the use of biomass as an energy source2 and 7#b7 degradation of carbon sinks and biodiversity relating to the use of biomass as an energy source4 7d7 ,report ,the ,national ,academy of ,sciences shall prepare a report that includes any findings and recommendations made pursuant to this section and1 not later than #ah months after the date of the enactment of this ,act1 make such report electronically available to the public4 #h4 ,amendments to the ,clean ,air ,act 7a7 ,in general ,title ,,iii of the ,clean ,air ,act 7#db ,u4,s4,c4 #gfja7 is amended by adding at the end the following3 #ccj4 ,suspension of regulation of fuels and emissions based on greenhouse gas effects 7a7 ,fuels ,unless specifically authorized in section #bjb1 #baa1 #bac1 or #bca or this section1 if a carbon fee is imposed by section #iijb or #iijh of the ,internal ,revenue ,code of #aihf with respect to a covered fuel1 the ,administrator shall not enforce any rule limiting the emission of greenhouse gases from the combustion of that fuel under this ,act 7or impose any requirement on any ,state to limit such emission7 on the basis of the emission's greenhouse gas effects4 7b7 ,emissions ,unless specifically authorized in section #bjb1 #baa1 #bac1 or #bca or this section1 if a fee is imposed by section #iijd of the ,internal ,revenue ,code of #aihf with respect to a fluorinated greenhouse gas1 the ,administrator shall not enforce any rule limiting such gas under this ,act 7or impose any requirement on any ,state to limit such gas7 on the basis of the greenhouse gas effects of such gas4 7c7 ,authorized regulation ,notwithstanding subsections 7a7 and 7b71 nothing in this section limits the ,administrator's authority pursuant to any other provision of this ,act-- 7#a7 to limit the emission of any greenhouse gas because of any adverse impact on health or welfare other than its greenhouse gas effects2 7#b7 in limiting emissions as described in paragraph 7#a71 to consider the collateral benefits of limiting the emissions because of greenhouse gas effects2 7#c7 to limit the emission of black carbon or any other pollutant that is not a greenhouse gas that the ,administrator determines by rule has heat-trapping properties2 or 7#d7 to take any action with respect to any greenhouse gas other than limiting its emission1 including-- 7,a7 monitoring1 reporting1 and record-keeping requirements2 7,b7 conducting or supporting investigations2 and 7,c7 information collection4 7d7 ,exception for certain greenhouse gas emissions ,notwithstanding subsections 7a7 and 7b71 nothing in this section limits the ,administrator's authority to regulate greenhouse gas emissions from-- 7#a7 sources that-- 7,a7 are subject to subpart ,,oooo or ,o,o,o,oa of part #fj of title #dj1 ,code of ,federal ,regulations1 as in effect or ,january #a1 #bjbj2 or 7,b7 would be subject to such subpart ,,oooo or subpart ,o,o,o,oa if such subpart applied regardless of the date on which construction1 modification1 or reconstruction of the source involved commenced2 or 7#b7 ,,potw ,treatment ,plants 7as defined in section #djc4c7r7 of title #dj1 ,code of ,federal ,regulations74 7e7 ,suspension expiration 7#a7 ,determination ,the ,administrator shall make a determination by ,march #cj1 #bjcj1 and no less than once every five years thereafter1 based on the determination required by section #iijc7;b7 of the ,internal ,revenue ,code of #aihf1 as to whether cumulative greenhouse gas emissions from covered fuels subject to taxation under section #iijb of such ,code during the period from calendar year #bjbb through the calendar year preceding the determination exceed the cumulative emissions for that period that would have occurred if the emission reduction targets in section #iijc7;a77#b7 of such ,code were met4 7#b7 ,consequence of cumulative emissions exceedance ,if the ,administrator determines under paragraph 7#a7 that cumulative greenhouse gas emissions from covered fuels subject to tax under section #iijb of the ,internal ,revenue ,code of #aihf exceed the cumulative emissions for the period covered by the determination that would have occurred if the emission reduction targets in section #iijc7;a77#b7 of such ,code were met1 then the prohibitions in subsection 7a7 of this section1 and in section #baa7;c77#e7 of this ,act1 shall cease to apply4 7f7 ,assuring environmental integrity 7#a7 ,authority ,if the ,administrator determines pursuant to subsection 7e77#a7 of this section that the emission reduction targets in section #iijc 7a77#b7 of the ,internal ,revenue ,code of #aihf are not met-- 7,a7 subsections 7a7 and 7b7 shall cease to apply2 and 7,b7 the ,administrator shall-- 7i7 issue such regulations as the ,administrator deems necessary to bring greenhouse gas emissions from covered fuels subject to taxation under section #iijb of the ,internal ,revenue ,code of #aihf to levels that are at or below the emission reductions targets in section #iijc7;a77#b7 of such ,code2 and 7ii7 require in such regulations that additional reductions in greenhouse gas emissions are achieved to fully compensate for any amount by which greenhouse gas emissions from covered fuels subject to taxation under section #iijb of such ,code have exceeded the targets in section #iijc7;a77#b7 of such ,code4 7#b7 ,deadline for finalizing regulations ,the ,administrator shall finalize any regulations required by paragraph 7#a7 not later than two years after the ,administrator makes the relevant determination pursuant to such paragraph4 7#c7 ,achievement of additional reductions ,regulations issued pursuant to paragraph 7#a7 shall ensure that any additional reductions required by paragraph 7#a77;,b77ii7 are fully achieved by no later than eight years after the ,administrator makes the determination pursuant to subsection 7e77#a7 described in paragraph 7#a74 7g7 ,definitions ,in this section1 the terms greenhouse gas and greenhouse gas effects have the meanings given to those terms in section #iija of the ,internal ,revenue ,code of #aihf4 4 7b7 ,new motor vehicles and new motor vehicle engines ,section #bjb7;b7 of the ,clean ,air ,act 7#db ,u4,s4,c4 #geba7;b77 is amended-- 7#a7 by redesignating the second paragraph 7#c7 7as redesignated by section #bcj7d77;,c7 of ,public ,law #aja-edi 7#ajd ,stat4 #bebi77 as paragraph 7#d72 and 7#b7 by adding at the end the following3 7#e7 ,notwithstanding subsections 7a7 and 7b7 of section #ccj1 the ,administrator may-- 7,a7 limit the emission of any greenhouse gas 7as defined in section #iija of the ,internal ,revenue ,code of #aihf7 on the basis of the emission's greenhouse gas effects 7as defined in section #iija of the ,internal ,revenue ,code of #aihf7 from any class or classes of new motor vehicles or new motor vehicle engines subject to regulation under subsection 7a77#a72 and 7,b7 grant a waiver under section #bji7;b77#a7 for standards for the control of greenhouse gas emissions4 4 7c7 ,fuels ,section #baa7;c7 of the ,clean ,air ,act 7#db ,u4,s4,c4 #gede7;c77 is amended by adding at the end the following new paragraph3 7#e7 ,the ,administrator shall not1 pursuant to this subsection1 impose on any manufacturer or processor of fuel any requirement for the purpose of reducing the emission of any greenhouse gas 7as defined in section #iija of the ,internal ,revenue ,code of #aihf7 produced by combustion of the fuel on the basis of the emission's greenhouse gas effects 7as defined in section #iija of the ,internal ,revenue ,code of #aihf74 4 7d7 ,nonroad engines and vehicles emissions standards ,section #bac of the ,clean ,air ,act 7#db ,u4,s4,c4 #gedg7 is amended by adding at the end the following3 7e7 ,greenhouse gas emissions ,notwithstanding section #ccj7;a71 the ,administrator may limit the emission of any greenhouse gas 7as defined in section #iija of the ,internal ,revenue ,code of #aihf7 on the basis of the emission's greenhouse gas effects 7as defined in section #iija of the ,internal ,revenue ,code of #aihf7 from any nonroad engines and nonroad vehicles subject to regulation under this section4 4 7e7 ,aircraft emission standards ,section #bca of the ,clean ,air ,act 7#db ,u4,s4,c4 #gega7 is amended by adding at the end the following new subsection3 7d7 ,notwithstanding subsections 7a7 and 7b7 of section #ccj1 the ,administrator may limit the emission of any greenhouse gas 7as defined in section #iija of the ,internal ,revenue ,code of #aihf7 on the basis of the emission's greenhouse gas effects 7as defined in section #iija of the ,internal ,revenue ,code of #aihf7 from any class or classes of aircraft engines1 so long as any such limitation is not more stringent than the standards adopted by the ,international ,civil ,aviation ,organization4 4 #i4 ,effective date ,the amendments made by this ,act shall take effect on the date of the enactment of this ,act1 except the carbon fee under section #iijb of the ,internal ,revenue ,code of #aihf shall apply to uses1 sales1 or transfers more than #bgj days after the date of the enactment of this ,act4 #aj4 ,principle of interpretation ,in the case of ambiguity1 the texts of this statute and its amending texts shall be interpreted so as to allow for the most effective abatement of greenhouse gas emissions4 #aa4 ,no preemption of ,state law ,nothing in this legislation shall preempt or supersede1 or be interpreted to preempt or supersede1 any ,state law or regulation4