,i #aafth ,,congress #b;d ,session ,h4 ,r4 #hage ,,in ,,the ,,house ,,of ,,representatives ,september #d1 #bjbj ,mr4 ,mc,nerney introduced the following bill2 which was referred to the ,committee on ,ways and ,means1 and in addition to the ,committees on ,education and ,labor1 ,science1 ,space1 and ,technology1 ,energy and ,commerce1 and ,transportation and ,infrastructure1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to impose a tax on fossil fuels and to use the revenues for economic benefit4 #a4 ,short title ,this ,act may be cited as the ,consumers ,rebate to ban ,emissions and ,boost ,al,ternative ,energy ,act or the ,consumers ,,rebate ,act4 #b4 ,excise tax on carbon dioxide content of coal1 oil1 and natural gas 7a7 ,in general ,the ,internal ,revenue ,code of #aihf is amended by adding at the end the following3 ,l ,carbon dioxide content of coal1 oil1 and natural gas ,sec4 #iija4 ,imposition of tax4 ,sec4 #iijb4 ,carbon equivalency fee4 ,sec4 #iijc4 ,definitions4 ,sec4 #iijd4 ,special rules4 #iija4 ,imposition of tax 7a7 ,in general ,there is hereby imposed a tax on producing at the wellhead or mine in the ,united ,states1 or importing1 a taxable carbon substance4 7b7 ,rate of tax 7#a7 ,in general ,the tax imposed under subsection 7a7 shall be the applicable amount per metric ton of carbon dioxide content of the life-cycle emissions from the taxable carbon substance4 7#b7 ,applicable amount ,for purposes of paragraph 7#a7-- 7,a7 ,in general ,for calendar year #bjba1 the term applicable amount means #be4 7,b7 ,annual adjustments generally ,in the case of any taxable year beginning in a calendar year after #bjba1 the dollar amount in effect under subparagraph 7,a7 for the preceding calendar shall be increased by #aj4 7#c7 ,zero rate if emission reduction benchmark attained 7,a7 ,in general ,if the ,administrator determines and specifies in a report issued under subsection 7c77#c77;,a7 in the year immediately preceding a year specified in subsection 7c77#a77;,a7 that the emissions reduction benchmark for that specified year will be met or exceeded1 then for that specified year and the succeeding #d calendar years-- 7i7 paragraph 7#b7 shall not apply1 and 7ii7 the applicable amount shall be zero4 7,b7 ,reinstatement 7i7 ,in general ,except as provided in clause 7ii71 for any calendar year after a period referred to in subparagraph 7,a71 paragraph 7#b7 shall be applied and the applicable amount for the first such calendar year shall be the dollar amount in effect for the calendar year preceding the beginning of such period4 7ii7 ,exception ,clause 7i7 shall not apply to a calendar year if1 with respect to that calendar year1 a determination described in subparagraph 7,a7 applies to that calendar year4 7c7 ,emissions reductions benchmarks ,for purposes of this section-- 7#a7 ,in general ,the emissions reduction benchmarks are as follows3 7,a7 #cj percent below the emissions benchmark by #bjbe4 7,b7 #dj percent below the emissions benchmark by #bjcj4 7,c7 #ej percent below the emissions benchmark by #bjce4 7,d7 #gj percent below the emissions benchmark by #bjde4 7,e7 #hj percent below the emissions benchmark by #bjej4 7#b7 ,emissions benchmark ,the emissions benchmark is the #bjje level of life-cycle emissions from the taxable carbon substances1 as determined by the ,administrator4 7#c7 ,reports 7,a7 ,emissions reductions target report ,not later than #b years after the date of enactment of the ,consumers ,rebate to ban ,emissions and ,boost ,al,ternative ,energy ,act1 and every #b years thereafter1 the ,administrator shall issue an emissions reduction benchmarks report4 ,the report shall include1 in detail1 the emission reductions resulting from the imposition of tax under this section and the expected trajectory of emissions reductions4 7,b7 #e-year report ,the ,administrator shall1 after consultation with other appropriate ,federal and ,state agencies and non-,federal stakeholders1 issue a report every #e years on the effects of the carbon tax established under this subtitle1 including energy market conditions1 impacts to consumers1 impacts to the environment1 actual emission reductions1 and reliability and resiliency of the electric grid4 7d7 ,by whom paid ,the tax imposed by subsection 7a7 shall be paid by the producer1 miner1 or importer of the taxable carbon substance4 7e7 ,regulations ,not later than #b years after the date of enactment of the ,consumers ,rebate to ban ,emissions and ,boost ,al,ternative ,energy ,act1 the ,secretary shall issue such regulations as may be necessary or appropriate to carry out this subtitle4 #iijb4 ,carbon equivalency fee 7a7 ,purpose ,the purpose of this section is to ensure the environmental effectiveness of this subtitle4 7b7 ,imports ,the ,secretary1 in consultation with the ,secretary of ,energy1 the ,administrator1 and the ,commissioner of the ,u4,s4 ,customs and ,border ,protection1 shall impose carbon equivalency fees on imports of goods containing or produced using a taxable carbon substance4 ,the amount of the carbon equivalency fee with respect to the import of any good shall be equal to the cost that domestic producers of a comparable good incur as a result of-- 7#a7 the tax imposed under section #iija1 and 7#b7 carbon equivalency fees imposed under this section on any goods used in the production of such good4 7c7 ,collection ,the fees imposed under this section shall be collected by the ,commissioner of the ,u4,s4 ,customs and ,border ,protection4 7d7 ,expiration ,this section shall cease to have effect at such time as and to the extent that-- 7#a7 an international agreement requiring countries that emit carbon dioxide or produce goods containing or using taxable carbon substances to adopt equivalent measures comes into effect1 or 7#b7 the country of export has implemented equivalent measures1 as determined by the ,secretary1 in consultation with the ,secretary of ,state4 #iijc4 ,definitions ,for purposes of this subtitle-- 7#a7 ,taxable carbon substance ,the term taxable carbon substance means-- 7,a7 coal1 7,b7 oil1 and 7,c7 natural gas4 7#b7 ,coal ,the term coal includes lignite1 anthracite1 bituminous1 subbituminous1 peat or other forms of what is commonly referred to as coal produced from a mine4 7#c7 ,oil ,the term oil includes crude oil condensates1 natural gasoline1 shale oil1 any bitumen or bituminous mixture1 any oil derived from a bitumen or bituminous mixture1 and any oil derived from kerogen-bearing sources4 7#d7 ,natural gas ,the term natural gas means either natural gas unmixed1 or any mixture of natural and artificial gas4 7#e7 ,life-cycle emissions ,the term life-cycle emissions means total life-cycle emissions of carbon dioxide from a taxable carbon substance which shall be determined by the ,administrator4 7#f7 ,administrator ,the term ,administrator means the ,administrator of the ,environmental ,protection ,agency4 7#g7 ,united ,states ,the term ,united ,states means the ,states1 and territory or possession of the ,united ,states1 and the ,district of ,columbia4 #iijd4 ,special rules 7a7 ,export ,for purposes of this subtitle-- 7#a7 ,in general ,no tax shall be imposed under section #iija on the production or mining of a taxable carbon substance which is intended for export1 including the sale or resale by a purchaser to a second purchaser for export4 7#b7 ,proof of export required ,rules similar to the rules of section #dbba7;b7 shall apply for purposes of paragraph 7#a74 7#c7 ,credit or refund where tax paid 7,a7 ,in general ,except as provided in subparagraph 7,b71 if-- 7i7 tax under section #iija was paid with respect to any taxable carbon substance1 and 7ii7 7,i7 such substance was exported by any person1 or 7,,ii7 such substance was used as a material in the manufacture or production of a substance which was exported by any person and which1 at the time of export1 was a taxable carbon substance 7as defined in section #iijb7a771 credit or refund 7without interest7 of such tax shall be allowed or made to the person who paid such tax4 7,b7 ,condition to allowance ,no credit or refund shall be allowed or made under subparagraph 7,a7 unless the person who paid the tax establishes that he-- 7i7 has repaid or agreed to repay the amount of the tax to the person who exported the taxable chemical or taxable substance 7as so defined71 or 7ii7 has obtained the written consent of such exporter to the allowance of the credit or the making of the refund4 7#d7 ,refunds directly to exporter ,the ,secretary shall provide1 in regulations1 the circumstances under which a credit or refund 7without interest7 of the tax under section #iija shall be allowed or made to the person who exported the taxable carbon substance1 where-- 7,a7 the person who paid the tax waives his claim to the amount of such credit or refund1 and 7,b7 the person exporting the taxable carbon substance provides such information as the ,secretary may require in such regulations4 7#e7 ,regulations ,the ,secretary shall prescribe such regulations as may be necessary to carry out the purposes of this subsection4 4 7b7 ,establishment of trust fund 7#a7 ,in general ,subchapter ,a of chapter #ih of such ,code 7relating to trust fund code7 is amended by adding at the end the following3 #ieab4 ,carbon trust fund 7a7 ,creation of trust fund ,there is established in the ,treasury of the ,united ,states a trust fund to be known as the ,carbon ,trust ,fund 7referred to in this section as the ,trust ,fund71 consisting of such amounts as may be appropriated or credited to the ,trust ,fund as provided in this section or section #ifjb7;b74 7b7 ,transfers to trust fund ,there is hereby appropriated to the ,trust ,fund an amount equivalent to the amounts received in the ,treasury pursuant to section #iija4 7c7 ,expenditures from trust fund 7#a7 ,in general ,from amounts in the ,trust ,fund at the beginning of a fiscal year1 the following amounts shall be made available as follows3 7,a7 ,the amount necessary shall be paid into general receipts in the ,treasury to offset a reduction in the rate of individual income tax by reason of the amendments made by section #b7;c7 of the ,consumers ,rebate to ban ,emissions and ,boost ,al,ternative ,energy ,act4 7,b7 ,of the amounts remaining available after the application of subparagraph 7,a71 #bj percent shall be available for the following3 7i7 ,worker transition assistance1 with an emphasis on coal workers and coal communities1 and workforce development4 7ii7 ,rural energy assistance and efficiency improvements4 7iii7 ,technology neutral1 energy-related research and development4 7iv7 ,air1 rail1 and marine transportation emissions reduction and efficiency programs4 7v7 ,electric grid and pipeline innovations and improvements4 7vi7 ,increasing resiliency of water1 transportation1 energy1 and other infrastructure that are vulnerable to extreme weather and other effects of a changing climate4 7vii7 ,energy efficiency and conservation4 7,c7 ,the amounts remaining after the application of subparagraphs 7,a7 and 7,b7 shall be made available for quarterly citizen rebates4 7#b7 ,consultation ,in determining the amount provided toward each category referred to in paragraph 7#a77;,b71 the ,secretary shall consult with the ,secretary of ,energy1 the ,secretary of ,labor1 and any other relevant ,federal agency prior to distributing money from the ,trust ,fund4 4 7#b7 ,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 trust fund4 4 7c7 ,reduction in individual income tax rates 7#a7 ,in general ,section #a7;j7 of such ,code is amended by redesignating paragraph 7#f7 as paragraph 7#g7 and by inserting after paragraph 7#e7 the following3 7#f7 ,reduction in individual income tax rates ,in the case of taxable years beginning after ,december #ca1 #bjba1 the tables under paragraph 7#b7 shall be applied-- 7,a7 by substituting #i for #aj each place it appears1 7,b7 by substituting #aa for #ab each place it appears1 7,c7 by substituting #ba for #bb each place it appears1 and 7,d7 by substituting #bc4e for #bd each place it appears4 4 7#b7 ,coordination among provisions relating to children with unearned income ,clauses 7i77,,ii7 and 7,,iii7 of section #a7;j77#d77;,b7 of such ,code are amended by striking paragraph 7#c7 and inserting paragraphs 7#c7 and 7#f74 7d7 ,quarterly citizen rebates 7#a7 ,quarterly payments to eligible dividend recipients 7,a7 ,in general ,from amounts made available pursuant to section #ieab7;c77#a77;,c7 of the ,internal ,revenue ,code of #aihf1 the ,secretary shall make payment each calendar quarter to each eligible dividend recipient4 7,b7 ,amount of payment ,for purposes of subparagraph 7,a71 the amount of each payment with respect to an eligible dividend recipient shall be the amount determined by the ,secretary by dividing-- 7i7 for the years #bjbb through #bjcj-- 7,i7 the total amount available under section #ieab7;c77#a77;,c7 of the ,internal ,revenue ,code of #aihf for the preceding calendar quarter1 by 7,,ii7 the total number of eligible dividend recipients for such preceding calendar quarter1 and 7ii7 for year #bjca and subsequent years-- 7,i7 the smaller of-- 7aa7 the quarterly average of the total amount available under section #ieab7;c77#a77;,c7 of the ,internal ,revenue ,code of #aihf for the four quarters of #bjcj1 and 7bb7 the total amount available under section #ieab7;c77#a77;,c7 of the ,internal ,revenue ,code of #aihf for the preceding calendar quarter1 by 7,,ii7 the total number of eligible dividend recipients for such preceding calendar quarter4 7,c7 ,eligible dividend recipient ,for purposes of this subsection1 the term eligible dividend recipient means1 with respect to any quarter1 any individual with a valid social security number 7other than a nonresident undocumented individual7 who is lawfully present in the ,united ,states for such quarter1 as determined and verified by the ,secretary in consultation with any other ,federal entity the ,secretary determines appropriate4 7,d7 ,fund ,the term ,fund means the ,carbon ,trust ,fund established by section #ieab of the ,internal ,revenue ,code of #aihf 7as added by subsection 7e774 7#b7 ,regulations ,the ,secretary of the ,treasury shall promulgate regulations governing the payment of funds under paragraph 7#a71 including-- 7,a7 procedures for the identification and maintenance of an accurate list of eligible dividend recipients1 and 7,b7 the use of electronic means for transfers of funds1 to the maximum extent practicable4 7e7 ,clerical amendment ,the table of subtitles for the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new item3 ,subtitle ,l4 ,carbon dioxide content of coal1 oil1 and natural gas4 4 7f7 ,effective date 7#a7 ,except as provided by paragraph 7#b71 the amendments made by this section shall take effect on ,january #a1 #bjbb4 7#b7 ,the amendments made by subsection 7c7 shall apply to taxable years beginning after ,december #ca1 #bjba4