,,ii #aafth ,,congress #ast ,session ,s4 #bbhd ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,july #be1 #bjai ,mr4 ,coons 7for himself and ,mrs4 ,feinstein7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to create a ,climate ,action ,rebate ,fund in order to efficiently reduce greenhouse gas emissions1 provide a monthly rebate to the ,american people1 encourage innovation of clean energy technologies and create new economic opportunities1 ensure the resiliency of our infrastructure1 assist with the transition to a clean energy economy1 and leave a healthier1 more stable1 and more prosperous nation for future generations4 #a4 ,short title ,this ,act may be cited as the ,climate ,action ,rebate ,act of #bjai4 #b4 ,findings ,the ,congress finds that-- 7#a7 climate change is costing the ,united ,states billions of dollars of economic losses and poses an existential threat to our safety and security2 7#b7 markets should reflect all costs of goods1 including external factors such as pollution2 and 7#c7 creation of a ,climate ,action ,rebate ,fund can make markets more efficient1 create jobs1 stimulate innovation1 invest in infrastructure1 put money back in the pockets of ,americans1 and provide for the transition to a cleaner energy future4 #c4 ,carbon fee 7a7 ,in general ,chapter #ch of subtitle ,d of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subchapter3 ,e ,carbon fee ,sec4 #dfia4 ,definitions4 ,sec4 #dfib4 ,carbon fee4 ,sec4 #dfic4 ,emissions reduction schedule4 ,sec4 #dfid4 ,fee on fluorinated greenhouse gases4 ,sec4 #dfie4 ,carbon capture refunds4 ,sec4 #dfif4 ,carbon border fee adjustment4 ,sec4 #dfig4 ,administration of the carbon border fee adjustment4 ,sec4 #dfih4 ,allocation of carbon border fee adjustment revenues4 #dfia4 ,definitions ,for purposes of this subchapter-- 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 means-- 7#a7 iron1 steel1 steel mill products 7including pipe and tube71 aluminum1 cement1 glass 7including flat1 container1 and specialty glass and fiberglass71 pulp1 paper1 chemicals1 or industrial ceramics1 and 7#b7 any manufactured product which the ,secretary1 in consultation with the ,administrator1 determines is energy-intensive and trade-exposed 7with the exception of any covered fuel74 7d7 ,covered entity ,the term covered entity means-- 7#a7 in the case of crude oil-- 7,a7 any operator of a ,united ,states refinery 7as described in subsection 7d77#a7 of section #dfaa71 and 7,b7 any person entering such product into the ,united ,states for consumption1 use1 or warehousing 7as described in subsection 7d77#b7 of such section71 7#b7 in the case of coal-- 7,a7 any producer subject to the tax under section #daba1 and 7,b7 any importer of coal into the ,united ,states1 7#c7 in the case of natural gas-- 7,a7 any entity which produces natural gas 7as defined in section #fac;,a7e77#b77 from a well located in the ,united ,states1 and 7,b7 any importer of natural gas into the ,united ,states1 7#d7 in the case of fluorinated gases1 any entity required to report the emission of a fluorinated gas under part #ih of title #dj1 ,code of ,federal ,regulations1 7#e7 in the case of solid biomass1 any entity which operates a facility that combusts such solid biomass in a manner which emits a greenhouse gas into the atmosphere1 and 7#f7 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 into the atmosphere and which has not been covered by the carbon fee1 the fluorinated greenhouse gas fee1 or the carbon border fee adjustment4 7e7 ,covered fuel ,the term covered fuel means crude oil1 natural gas1 coal1 solid biomass1 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 7f7 ,full fuel cycle greenhouse gas emissions ,the term full fuel cycle greenhouse gas emissions means the greenhouse gas content of a covered fuel 7excluding solid biomass7 plus that covered fuel's upstream greenhouse gas emissions4 7g7 ,greenhouse gas ,the term greenhouse gas has the same meaning given such term under paragraph 7#c7 of section #ija of the ,energy ,independence and ,security ,act of #bjjg 7#db ,u4,s4,c4 #agcba71 and shall include any other gases as identified by rule of the ,administrator4 7h7 ,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 fuel4 7i7 ,solid biomass ,the term solid biomass means nonfossilized and biodegradable organic material originating from plants1 animals or microorganisms1 including products1 byproducts1 residues and waste from agriculture1 forestry and related industries as well as the nonfossilized and biodegradable organic fractions of industrial and municipal wastes1 but does not include gases and liquids recovered from the decomposition of nonfossilized and biodegradable organic material4 7j7 ,united ,states ,the term ,united ,states shall be treated as including each possession of the ,united ,states 7including the ,commonwealth of ,puerto ,rico and the ,commonwealth of the ,northern ,mariana ,islands74 #dfib4 ,carbon fee 7a7 ,carbon fee ,there is hereby imposed a carbon fee on any covered entity's use1 sale1 or transfer 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 #bjbj1 #ae1 and 7,b7 except as provided in paragraph 7#b71 in the case of any calendar year thereafter1 the carbon fee rate in effect under this subsection for the preceding calendar year1 plus #ae4 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 #dfic7;b7 that the emissions of greenhouse gases from covered fuels exceeded the emissions reduction target for the previous year1 paragraph 7#a77;,b7 shall be applied by substituting #cj for #ae4 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 #dfic7;b7 that emissions of greenhouse gases from covered fuels are not more than #aj percent of the greenhouse gas emissions from covered fuels during the year #bjag1 paragraph 7#a77;,b7 shall be applied by substituting #j for #ae4 7d7 ,solid biomass ,for purposes of subsection 7b71 in the case of a covered fuel which consists of solid biomass1 the greenhouse gas content of such covered fuel shall be determined by the ,administrator based on the lifecycle greenhouse gas emissions of such fuel1 as defined in section #baa7o77#a77;,h7 of the ,clean ,air ,act 7#db ,u4,s4,c4 #gede7o77#a77;,h774 7e7 ,exemption and refund ,the ,secretary shall prescribe such rules as are necessary to ensure the carbon 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 7f7 ,administrative authority ,the ,secretary1 in consultation with the ,administrator1 shall prescribe such regulations1 and other guidance1 to assess and collect the carbon fee imposed by this section1 including-- 7#a7 requirements for the quarterly payment of such fees1 and 7#b7 rules to ensure that no covered fuel has the carbon fee or the carbon border fee adjustment imposed upon it more than once4 #dfic4 ,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 7,a7 ,in general ,subject to subparagraph 7,b71 the greenhouse gas emissions from covered fuels during the year #bjag shall be the reference amount of emissions and shall be determined from the ,inventory of ,u4,s4 ,greenhouse ,gas ,emissions and ,sinks3 #aiij-bjag published by the ,environmental ,protection ,agency in ,april of #bjai4 7,b7 ,updates ,if the greenhouse gas emissions from covered fuels during the year #bjag is revised by the ,administrator in a subsequent report1 the amount of such emissions contained in such report shall apply for purposes of this section4 7#b7 ,emissions reduction targets 7,a7 #bjbj through #bjcj ,the emissions reduction target for each calendar year during the period of calendar years #bjbj through #bjcj shall be determined as follows3 ,year,emissions ,reduction ,target #bjag,reference year #bjbjij percent of #bjag emissions #bjbaha percent of #bjag emissions #bjbbgd percent of #bjag emissions #bjbcfh percent of #bjag emissions #bjbdfc percent of #bjag emissions #bjbeei percent of #bjag emissions #bjbfef percent of #bjag emissions #bjbgeb percent of #bjag emissions #bjbhej percent of #bjag emissions #bjbidg percent of #bjag emissions #bjcjde percent of #bjag emissions 7,b7 #bjca through #bjej ,the emissions reduction target for each calendar year during the period of calendar years #bjca through #bjej shall be equal to the emissions reduction target for the preceding year reduced by an amount equal to #b4be percent of #bjag emissions4 7b7 ,administrative determination ,not later than #ij days after the beginning of each calendar year beginning after the date of the enactment of this section1 the ,secretary1 in consultation with the ,administrator1 shall determine whether 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-bjag published by the ,environmental ,protection ,agency in ,april of #bjai4 #dfid4 ,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 #bj percent of the carbon fee rate in effect under section #dfib7;c77#a7 for the calendar year of such emission4 7c7 ,administrative authority ,the ,secretary1 in consultation with the ,administrator1 shall prescribe such regulations1 and other guidance1 to assess and collect the carbon fee imposed by this section1 including-- 7#a7 requirements for the quarterly payment of such fees1 and 7#b7 rules to ensure that no covered fuel has the carbon fee or the carbon border fee adjustment imposed upon it more than once4 #dfie4 ,carbon capture refunds 7a7 ,in general ,the ,secretary1 in consultation with the ,administrator and the heads of other relevant ,federal agencies1 shall prescribe regulations for providing payments to any person which captures qualified carbon oxide 7as defined in subsection 7c7 of section #de,q7 which is-- 7#a7 disposed of by such person in secure geological storage1 as described in subsection 7f77#b7 of such section1 7#b7 used by such person as a tertiary injectant in a qualified enhanced oil or natural gas recovery project 7as defined in subsection 7e77#b7 of such section7 and disposed of by such person in secure geological storage1 or 7#c7 utilized by such person in a manner described in subsection 7f77#e7 of such section4 7b7 ,payments for carbon capture 7#a7 ,in general ,in the case of any industrial facility for which carbon capture equipment has been placed in service1 the ,secretary shall make payments to the owner of such facility in the same manner as if such payment was a refund of an overpayment of the carbon fee imposed by section #dfib4 7#b7 ,amount of payment ,the payment determined under this subsection shall be an amount equal to-- 7,a7 the metric tons of qualified carbon oxide captured and disposed of1 used1 or utilized in a manner consistent with subsection 7a71 multiplied by 7,b7 the carbon fee rate during the year in which the carbon fee was imposed by section #dfib upon the covered fuel to which such carbon oxide relates4 7#c7 ,coordination with credit for carbon oxide sequestration ,at such time that the ,secretary prescribes regulations implementing this section1 no payment under this section shall be allowed to any person for any unit of carbon oxide for which a credit has been allowed with respect to such unit under section #de,q4 7c7 ,exception ,in the case of any industrial facility which is owned by an entity that is determined to be in violation of any applicable air quality regulations1 such facility shall not be eligible for any payment under this section during the period of such violation4 #dfif4 ,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 ,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 7c7 ,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 7d7 ,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 #dfib or #dfid4 ,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 #dfib 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 #dfib4 7e7 ,definitions ,for purposes of this section and section #dfig-- 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 ton of ,,co#b-;e4 7#b7 ,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 7#c7 ,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#d7 ,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 7#e7 ,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 #dfig4 ,administration of the carbon border fee adjustment 7a7 ,in general ,the ,secretary1 in consultation with the ,administrator1 shall prescribe regulations and guidance which implement the carbon border fee adjustment under section #dfif4 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 ,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 #dfih4 ,allocation of carbon border fee adjustment revenues ,the revenues collected under section #dfif 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 7#b7 from the amounts remaining following payment of the expenses described in paragraph 7#a71 to the ,department of ,treasury1 in such amounts as are necessary to allow refunds under section #dfif7;e7 to exporters of carbon-intensive products and exporters of covered fuels1 and 7#c7 from the amounts remaining following payment of the expenses described in paragraphs 7#a7 and 7#b7-- 7,a7 to the ,department of ,state and the ,united ,states ,agency for ,international ,development for programs to address climate mitigation and adaptation in developing countries1 including contributions to the ,green ,climate ,fund1 and 7,b7 to the ,export-,import ,bank of the ,united ,states to facilitate exportation of clean energy technologies 4 7b7 ,payments to farmers and landowners for nature-,based projects 7#a7 ,in general ,the ,secretary of ,agriculture1 in consultation with the ,administrator of the ,environmental ,protection ,agency1 shall provide payments to farmers and landowners within the ,united ,states to implement carbon sequestration projects with measurable greenhouse gas reduction benefits or other nature-based projects that reduce greenhouse gas emissions1 including projects for-- 7,a7 ecologically-appropriate reforestation1 7,b7 restoration of wetlands1 7,c7 agricultural practices such as the usage of cover crops1 no till1 and practices that can reduce emissions from livestock1 fertilizers1 and rice cultivation1 and 7,d7 other appropriate practices as determined by the ,secretary of ,agriculture4 7#b7 ,amount of payment ,not later than #ahj days after the date of enactment of this ,act1 the ,secretary of ,agriculture1 in consultation with the ,administrator of the ,environmental ,protection ,agency1 shall issue regulations to determine the amount of a payment under paragraph 7#a71 taking into account the use of certified third-party registries for verification of emissions reductions and provisions for addressing the potential impermanence of carbon sequestration in biomass and soils4 7c7 ,payments for direct air capture of carbon dioxide 7#a7 ,in general ,subject to paragraph 7#c71 the ,secretary of ,energy1 in consultation with the ,administrator of the ,environmental ,protection ,agency and the heads of any other relevant agencies1 shall make payments to any direct air capture facility 7as defined in section #de,q7e77#a7 of the ,internal ,revenue ,code of #aihf7 within the ,united ,states that uses carbon capture equipment to capture carbon dioxide directly from the ambient air and disposes of such carbon dioxide in secure geological storage 7as described in section #de,q7f77#b7 of such ,code74 7#b7 ,payment amount ,a payment under paragraph 7#a7 shall be in an amount equal to the product obtained by multiplying-- 7,a7 the metric tons of carbon dioxide captured and disposed of by the facility2 and 7,b7 the carbon fee rate in effect during the calendar year preceding the year in which the capture of such carbon dioxide occurs4 7#c7 ,exception ,in the case of any direct air capture facility which is owned by an entity that is determined to be in violation of any applicable air quality regulations1 such facility shall not be eligible for any payment under this section during the period of such violation4 7#d7 ,coordination with credit for carbon dioxide sequestration ,the ,secretary of ,energy shall not make a payment under this subsection with respect to any facility for any unit of carbon dioxide for which a credit has been allowed with respect to such unit under section #de,q of the ,internal ,revenue ,code of #aihf4 7d7 ,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 with respect to any unit of carbon oxide which has received any refund or payment with respect to such unit under section #c7;c7 of the ,climate ,action ,rebate ,act of #bjai or section #dfie4 4 7e7 ,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 partnerships1 or any other instrument that effectively reduces global greenhouse gas emissions to #aj percent of #bjag levels by #bjej and which respect the principle of common but differentiated responsibilities and respective capabilities4 #d4 ,establishment of the ,climate ,action ,rebate ,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 ,climate ,action ,rebate ,fund 7a7 ,establishment and funding ,there is hereby established in the ,treasury of the ,united ,states a trust fund to be known as the ,climate ,action ,rebate ,fund1 consisting of such amounts as may be appropriated to such trust fund as provided for in this section4 7b7 ,transfers to the ,climate ,action ,rebate ,fund ,there is hereby appropriated to the ,climate ,action ,rebate ,fund amounts equal to the fees received into the ,treasury less any amounts refunded or paid under sections #dfib7;d7 and #dfie for each month4 7c7 ,expenditures ,amounts in the trust fund shall be available for the following purposes3 7#a7 ,carbon ,fee ,administrative ,expenses ,so much of the expenses as are necessary to administer sections #dfib through #dfie for any year as does not to exceed #j4fj percent of the amounts appropriated to the ,climate ,action ,rebate ,fund for the previous year4 7#b7 ,climate ,action ,rebate ,fund ,administrative expenses ,so much of the expenses necessary to administer the ,climate ,action ,rebate ,fund for each year1 as does not exceed-- 7,a7 in the case of the first #e fiscal years ending after the date of the enactment of this section1 the administrative expenses for any year may not exceed #e percent of amounts appropriated to the ,climate ,action ,rebate ,fund during such year1 and 7,b7 in the case of any fiscal year thereafter1 #a4e percent of the #e-year rolling average of the amounts appropriated to the ,climate ,action ,rebate ,fund4 7#c7 ,climate ,action ,rebate payments 7,a7 ,in general ,for each fiscal year1 the amounts remaining in the ,climate ,action ,rebate ,fund following payment of expenses under paragraphs 7#a7 and 7#b7 shall be apportioned as follows3 7i7 #gj percent of such amounts for the purposes described in subsection 7d71 7ii7 #bj percent of such amounts for the purposes described in subsection 7e71 7iii7 #e percent of such amounts for the purposes described in subsection 7f71 and 7iv7 #e percent of such amounts for the purposes described in subsection 7g74 7d7 ,carbon dividend 7#a7 ,in general ,from the amounts in the ,carbon ,dividend ,trust ,fund made available under subsection 7c77#c77;,a77i7 for any year1 the ,secretary shall1 for each month beginning more than #bgj days after the date of the enactment of the ,climate ,action ,rebate ,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 adult and half a pro-rata share for each child under #ai years old of amounts available for the month in the ,climate ,action ,rebate ,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 ,states4 ,the ,secretary is authorized to verify an individual's eligibility to receive a carbon dividend payment4 7#d7 ,phaseout 7,a7 ,in general ,in the case of any taxpayer whose modified adjusted gross income for the most recent taxable year for which a return has been filed exceeds the threshold amount1 the amount of the carbon dividend otherwise payable to any household member of the taxpayer under this subsection shall be reduced 7but not below zero7 by a dollar amount equal to #e percent of such dividend 7as determined before application of this paragraph7 for each #a1jjj 7or fraction thereof7 by which such taxpayer's modified adjusted gross income exceeds the threshold amount4 7,b7 ,definitions ,for purposes of this paragraph-- 7i7 ,modified adjusted gross income ,the term modified adjusted gross income means adjusted gross income increased by any amount excluded from gross income under section #iaa1 #ica1 or #icc4 7ii7 ,household member ,the term household member of the taxpayer means the taxpayer1 the taxpayer's spouse1 and any dependent of the taxpayer4 7iii7 ,threshold amount ,the term threshold amount means-- 7,i7 #acj1jjj in the case of a joint return1 7,,ii7 #hj1jjj in the case of an individual who is not married1 and 7,,iii7 #fe1jjj in the case of a married individual filing a separate return4 7,c7 ,regulations ,the ,secretary shall prescribe such regulations1 and other guidance1 as may be necessary to carry out the purposes of this paragraph1 including establishment of rules for eligible individuals who have not filed a recent tax return4 7#e7 ,fee treatment of payments ,amounts paid under this subsection shall be includible in gross income4 7#f7 ,federal programs and ,federal assisted programs ,the carbon dividend amount received by any eligible 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#g7 ,advance payment ,the ,secretary shall transfer to the ,climate ,action ,rebate ,fund such amounts as are necessary for the disbursement of an advanced carbon dividend to all eligible individuals as follows3 7,a7 ,an advanced carbon dividend shall be the same as the anticipated first carbon dividend required to be distributed under paragraph 7#a7 and shall be distributed the month prior to the first collection of the carbon fee4 7,b7 ,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 7e7 ,infrastructure ,from the amounts in the ,carbon ,dividend ,trust ,fund made available under subsection 7c77#c77;,a77ii7 for any year1 the ,secretary shall transfer such amounts as follows3 7#a7 #ej percent to the ,highway ,trust ,fund under section #iejc1 with-- 7,a7 #hj percent of such amount allocated to the ,highway ,account for the payment of obligations incurred in carrying out ,federal-aid highway and highway safety construction programs authorized under title #bc1 ,united ,states ,code1 and 7,b7 #bj percent of such amount allocated to the ,mass ,transit ,account for the payment of obligations incurred in carrying out transit programs authorized under-- 7i7 chapter #ec of title #di1 ,united ,states ,code1 7ii7 section #bjjje7;b7 of the ,federal ,public ,transportation ,act of #bjab 7#di ,u4,s4,c4 #ecjc note2 ,public ,law #aab-ada71 and 7iii7 section #cjjf7;b7 of the ,federal ,public ,transportation ,act of #bjae 7#di ,u4,s4,c4 #ecaj note2 ,public ,law #aad-id74 7#b7 #b4e percent to the ,department of ,transportation for national infrastructure investments for innovative multimodal projects 7also known as the ,better ,utilizing ,investments to ,leverage ,development 7,,build7 ,transportation discretionary grant program74 7#c7 #b4e percent to the ,department of ,transportation to make grants to the ,national ,railroad ,passenger ,corporation for intercity passenger rail infrastructure1 as authorized by section #aaaja of the ,passenger ,rail ,reform and ,investment ,act of #bjae 7title ,,xi of division ,a of ,public ,law #aad-id7 and sections #bbijg and #bdiaa of title #di1 ,united ,states ,code4 7#d7 #e percent to the ,airport and ,airway ,trust ,fund under section #iejb for the payment of obligations incurred in carrying out aviation programs authorized under subtitle ,,vii of title #di1 ,united ,states ,code4 7#e7 #b4e percent to the ,department of ,transportation to support deployment of alternative fuel vehicles1 including electric vehicle charging stations and hydrogen fueling infrastructure4 7#f7 #e percent to the ,environmental ,protection ,agency for drinking water infrastructure programs under the ,safe ,drinking ,water ,act 7#db ,u4,s4,c4 #cjj;f et seq47 and wastewater and clean water infrastructure programs under the ,federal ,water ,pollution ,control ,act 7#cc ,u4,s4,c4 #abea et seq474 7#g7 #b4e percent to the ,secretary of ,agriculture for rural water or wastewater grants or direct or guaranteed loans under the ,consolidated ,farm and ,rural ,development ,act 7#g ,u4,s4,c4 #aiba et seq474 7#h7 #a4e percent to the ,federal ,communications ,commission to expand broadband access in rural areas4 7#i7 #e percent to the ,army ,corps of ,engineers for water resources development projects4 7#aj7 #b4e percent for the ,community ,development ,block ,grant program under title ,i of the ,housing and ,community ,development ,act of #aigd 7#db ,u4,s4,c4 #edja et seq47 to assist ,states1 units of general local government1 and ,indian tribes1 as those terms are defined in section #aja of such ,act 7#db ,u4,s4,c4 #ecja71 with planning and implementation of projects to support lowering emissions1 and climate impact adaptation1 including improving infrastructure resilience1 increasing transit and housing density1 and local economic development4 7#aa7 #b4e percent to the ,national ,oceanic and ,atmospheric ,administration for coastal resiliency programs and ocean observing and monitoring programs4 7#ab7 #b4e percent to the ,department of the ,interior for maintenance and infrastructure upgrades on public land4 7#ac7 #a4e percent to the ,hazardous ,substance ,superfund established under section #iejg4 7#ad7 #a4e percent to the ,abandoned ,mine ,reclamation ,fund created by section #dja of the ,surface ,mining ,control and ,reclamation ,act of #aigg 7#cj ,u4,s4,c4 #abca74 7#ae7 ,notwithstanding subsection 7b77#b7 of section #cjc of ,public ,law #if-dea 7#af ,u4,s4,c4 #afjf;a71 #a4e percent to the ,reforestation ,trust ,fund established by subsection 7a7 of that section4 7#af7 #b4e percent to the ,department of ,energy for energy efficiency programs1 including-- 7,a7 the ,weatherization ,assistance ,program for ,low-,income ,persons established under part ,a of title ,,iv of the ,energy ,conservation and ,production ,act 7#db ,u4,s4,c4 #fhfa et seq471 7,b7 ,state energy programs1 7,c7 the ,clean ,cities program1 7,d7 support for efficiency upgrades1 including energy savings performance contracting1 in ,federal buildings1 and 7,e7 the creation and initial funding of an ,energy ,efficiency ,state ,revolving ,fund1 to be modeled after-- 7i7 ,state water pollution control revolving funds established under title ,,vi of the ,federal ,water ,pollution ,control ,act 7#cc ,u4,s4,c4 #acha et seq471 and 7ii7 ,state drinking water treatment revolving loan funds established under section #adeb of the ,safe ,drinking ,water ,act 7#db ,u4,s4,c4 #cjj;j-#ab74 7#ag7 #b4e percent to the ,secretary of ,health and ,human ,services for a new program within the partnerships for ,state and regional hospital preparedness program under section #cai;,c-#b of the ,public ,health ,service ,act 7#db ,u4,s4,c4 #bdg;d-#c;b7 to fund infrastructure and facility improvements that support the climate resiliency and preparedness of hospitals and community health centers1 including priority support for critical access hospitals 7as defined in section #ahfa7mm77#a7 of the ,social ,security ,act 7#db ,u4,s4,c4 #aciex7mm77#a771 safety net hospitals 7as defined by the ,center for ,medicare and ,medicaid ,innovation71 and community health centers in places experiencing heavy air pollution4 7#ah7 #b4e percent to the ,secretary of ,veterans ,affairs to support resiliency and preparedness for ,department of ,veterans ,affairs medical facilities4 7#ai7 #a4e percent to the ,secretary of ,agriculture for-- 7,a7 energy programs under title ,,ix of the ,farm ,security and ,rural ,investment ,act of #bjjb 7#g ,u4,s4,c4 #haja et seq471 and 7,b7 watershed and flood prevention operations under the ,watershed ,protection and ,flood ,prevention ,act 7#af ,u4,s4,c4 #ajja et seq47 and the ,act of ,december #bb1 #aidd 7commonly known as the ,flood ,control ,act of #aidd7 7#eh ,stat4 #hhg1 chapter #ffe2 #cc ,u4,s4,c4 #gja-a et seq474 7#bj7 #b4e percent to the ,secretary of ,agriculture for the program established under section #c7;b7 of the ,climate ,action ,rebate ,act of #bjai4 7f7 ,innovation 7#a7 ,in general ,from the amounts in the ,carbon ,dividend ,trust ,fund made available under subsection 7c77#c77;,a77iii7 for any year1 the ,secretary shall transfer such amounts to the ,secretary of ,energy to carry out the purposes described in paragraph 7#b74 7#b7 ,expenditures ,the ,secretary of ,energy shall use the funds transferred under paragraph 7#a7 to support high-impact research1 development1 demonstration1 technology transfer1 and commercialization of technologies that reduce or eliminate greenhouse gas emissions1 including-- 7,a7 energy storage technologies1 including grid integration of storage1 7,b7 carbon capture1 utilization1 and sequestration1 including direct air capture1 7,c7 next-generation nuclear technologies1 7,d7 energy efficiency1 including in buildings and the industrial sector1 7,e7 electric grid modernization1 7,f7 sustainable transportation1 including hydrogen fuel cell and electric vehicles1 and 7,g7 the direct air capture program established under section #c7;c7 of the ,climate ,action ,rebate ,act of #bjai4 7#c7 ,specific programs ,in carrying out paragraph 7#b71 the ,secretary of ,energy shall include support for offices under the ,department of ,energy and programs that support commercialization and innovative collaboration1 including ,advanced ,research ,projects ,agency-,energy1 the ,loan ,programs ,office1 energy innovation hubs1 energy frontier research centers1 regionally centered innovation programs1 and the ,manufacturing ,,usa network4 7#d7 ,collaboration with other agencies ,the ,secretary of ,energy shall collaborate with other appropriate agencies1 including by sharing the funds transferred under paragraph 7#a71 to support overlapping areas of innovation1 including-- 7,a7 biomass and bioenergy with the ,department of ,agriculture1 7,b7 nature-based solutions for carbon sequestration with the ,departments of ,agriculture1 ,commerce1 and the ,interior1 7,c7 export of technologies that will help other countries reduce or eliminate greenhouse gas emissions with the ,departments of ,commerce and ,state1 and 7,d7 other such collaborations as determined necessary by the ,secretary of ,energy to achieve the goals outlined in paragraph 7#b74 7g7 ,transition ,assistance ,from the amounts in the ,carbon ,dividend ,trust ,fund made available under subsection 7c77#c77;,a77iv7 for any year1 the ,secretary shall transfer such amounts as follows3 7#a7 #dj percent to the ,department of ,labor for the establishment and initial funding of a program1 to be modeled after the trade adjustment assistance for workers program under chapter #b of title ,,ii of the ,trade ,act of #aigd 7#ai ,u4,s4,c4 #bbga et seq471 to assist workers in industries that may be displaced as a result of the fees imposed under sections #dfib and #dfid1 including assistance with respect to-- 7,a7 wage insurance1 7,b7 relocation expenses1 7,c7 early retirement1 7,d7 pension and health benefits1 including 7if applicable7 the #aigd ,,umwa ,pension ,plan 7as defined in section #igja7;a77#c771 7,e7 worker retraining1 and 7,f7 other assistance that the ,secretary of ,labor determines appropriate4 7#b7 #bj percent to the ,department of ,energy to make grants to ,states1 territories1 and tribes in order to assist communities facing significantly increased energy costs as a result of the fees imposed under sections #dfib and #dfid1 in particular rural and low-income communities4 7#c7 #aj percent to the ,department of ,health and ,human ,services for the low-income home energy assistance program established under the ,low-,income ,home ,energy ,assistance ,act of #aiha 7#db ,u4,s4,c4 #hfba et seq474 7#d7 #cj percent to the ,economic ,development ,administration for programs that support economic development and diversity in communities and areas dependent on industries that may be affected by the fees imposed under sections #dfib and #dfid1 including-- 7,a7 the ,economic ,adjustment ,assistance ,program1 and 7,b7 ,partnerships for ,opportunity and ,workforce and ,economic ,revitalization4 7h7 ,funding requirements 7#a7 ,in general ,all uses of funding transferred under subsection 7e7 through 7g7 shall be in accordance with practices that protect ,american manufacturing1 pay prevailing wages and benefits1 and further reduce emissions when possible4 7#b7 ,use of ,american goods 7,a7 ,in general ,none of the funds made available by this section may be used for a project for the construction1 alteration1 maintenance1 or repair of a public building or public work unless all of the iron1 steel1 cement1 and manufactured goods used in the project are produced in the ,united ,states4 7,b7 ,exception ,subparagraph 7,a7 shall not apply in any case or category of cases in which the head of the ,federal department or agency involved finds that-- 7i7 applying subparagraph 7,a7 would be inconsistent with the public interest1 7ii7 iron1 steel1 cement1 and the relevant manufactured goods are not produced in the ,united ,states in sufficient and reasonably available quantities and of a satisfactory quality1 or 7iii7 inclusion of iron1 steel1 cement1 and manufactured goods produced in the ,united ,states will increase the cost of the overall project by more than #be percent4 7,c7 ,publication ,if the head of a ,federal department or agency determines that it is necessary to waive the application of subparagraph 7,a7 based on a finding under subparagraph 7,b71 the head of the department or agency shall publish in the ,federal ,register a detailed written justification as to why the provision is being waived4 7,d7 ,international agreements ,this section shall be applied in a manner consistent with ,united ,states obligations under international agreements4 7#c7 ,wage rate requirements ,notwithstanding any other provision of law1 all laborers and mechanics employed by contractors and subcontractors on projects funded directly by or assisted in whole or in part by the ,climate ,act ,rebate ,fund shall be paid wages at rates not less than those prevailing on projects of a similar character in the locality as determined by the ,secretary of ,labor in accordance with subchapter ,,iv of chapter #ca of title #dj1 ,united ,states ,code4 ,with respect to the labor standards specified in this paragraph1 the ,secretary of ,labor shall have the authority and functions set forth in ,reorganization ,plan ,numbered #ad of #aiej 7#fd ,stat4 #abfg2 #e ,u4,s4,c4 ,app47 and section #cade of title #dj1 ,united ,states ,code4 7#d7 ,energy ,efficiency ,state ,revolving ,fund ,for fiscal year #bjbj and each fiscal year thereafter1 the labor standards specified in paragraph 7#c7 shall apply to projects assisted in whole or in part with recycled funds1 including principal repayments and interest earnings1 made available by the ,energy ,efficiency ,state ,revolving ,fund established pursuant to subsection 7e77#af77;,e74 7#e7 ,emissions reductions ,whenever possible1 materials used for projects funded by this section shall be chosen with respect to minimizing their lifecycle emissions1 as determined by the ,administrator4 7#f7 ,natural infrastructure ,whenever possible1 projects funded by subsection 7e7 shall prioritize consideration of natural features and nature-based features1 as defined in section #aahd7;a7 of the ,water ,infrastructure ,improvements for the ,nation ,act 7#cc ,u4,s4,c4 #bbhi;a7a774 7i7 ,sunset 7#a7 ,in general ,for any fiscal year beginning after the date on which the ,secretary determines that-- 7,a7 pursuant to section #dfic1 the emissions of greenhouse gases from covered fuels for the most recent calendar year is equal to or less than #aj percent of the greenhouse gas emissions from covered fuels for calendar year #bjag2 and 7,b7 the monthly carbon dividend payment made to an adult who is an eligible individual pursuant to subsection 7d7 has been less than #bj for the preceding #c calendar years1 no amounts may be transferred from ,climate ,action ,rebate ,fund for any purpose described in subsection 7c77#c71 and any amounts remaining in the ,climate ,action ,rebate ,fund shall be transferred to the general fund of the ,treasury of the ,united ,states4 7#b7 ,inflation adjustment ,in the case of any year beginning after #bjbj1 the dollar amount under paragraph 7#a77;,b7 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 year in which the taxable year begins1 determined by substituting calendar year #bjag for calendar year #bjaf in subparagraph 7,a77ii7 thereof4 7j7 ,administrative authority ,the ,secretary1 in coordination with the heads of other relevant ,federal agencies1 shall promulgate rules1 guidance1 and regulations useful and necessary to implement the ,climate ,action ,rebate ,fund4 4 7b7 ,revenues dedicated to trust funds 7#a7 ,airport and ,airway ,trust ,fund ,section #iejb7;b77#a7 of the ,internal ,revenue ,code of #aihf is amended-- 7,a7 by inserting and fees after the taxes1 and 7,b7 by striking and at the end of subparagraph 7,c7 and by inserting after subparagraph 7,d7 the following new subparagraph3 7,e7 section #ieab7;e77#d7 7relating to carbon fee71 and 4 7#b7 ,highway ,trust ,fund ,section #iejc7;b77#a7 of the ,internal ,revenue ,code of #aihf is amended-- 7,a7 by inserting and fees after equivalent to the taxes1 and 7,b7 by striking and at the end of subparagraph 7,d71 by striking the period at the end of subparagraph 7,e7 and inserting 1 and1 and by inserting after subparagraph 7,e7 the following new subparagraph3 7,f7 section #ieab7;e77#a7 7relating to carbon fee74 4 7c7 ,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 ,climate ,action ,rebate ,fund4 4 #e4 ,disclosure of return information ,section #fajc7l7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new paragraphs3 7#bc7 ,disclosure of return information relating to carbon dividend payments 7,a7 ,department of ,treasury ,return information with respect to any taxpayer 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 #ieab7;d7 7relating the carbon dividend payments from the ,climate ,action ,rebate ,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 return information which has been disclosed to the ,social ,security ,administration as is necessary to administer section #ieab7;d74 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 #ieab7;d74 4 #f4 ,effective date ,the amendments made by this ,act shall apply to any calendar year beginning after the date of enactment of this ,act4 #g4 ,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 #h4 ,no preemption of ,state law ,nothing in this ,act or any regulations promulgated under this ,act shall preempt or supersede1 or be interpreted to preempt or supersede1 any ,state law or regulation4