,i #aag? ,,congress #a/ ,session ,h4 ,r4 #decd ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,july #ai1 #bjba,mr4 ,pet]s 7= himself & ,mr4 ,panetta7 introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,ways & ,means1 & 9 addition to ! ,committees on ,sci5ce1 ,space1 & ,te*nology1 ,en]gy & ,comm]ce1 ,=eign ,affairs1 & ,education & ,labor1 = a p]iod to be subsequ5tly det]m9$ by ! ,speak]1 9 ea* case = consid]ation ( su* provisions z fall )9 ! jurisdiction ( ! committee conc]n$ ,a ,,bill ,to am5d ! ,int]nal ,rev5ue ,code ( #aihf to e/abli% a bord] c>bon adju/m5t = ! importation ( c]ta9 goods4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,fair1 ,af=dable1 ,innovative1 & ,resili5t ,transition & ,competition ,act or ! ,,fair ,transition & ,competition ,act4 #b4 ,bord] c>bon adju/m5t ,! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new subtitle3 ,l ,bord] c>bon adju/m5t ,*apt] #aja--;,bord] c>bon adju/m5t #aja ,bord] c>bon adju/m5t ,sec4 #iija4 ,def9itions4 ,sec4 #iijb4 ,det]m9ation ( dome/ic environm5tal co/ incurr$4 ,sec4 #iijc4 ,det]m9ation ( emissions = ea* sector4 ,sec4 #iijd4 ,bord] c>bon adju/m5t4 ,sec4 #iije4 ,adm9i/ration ( bord] c>bon adju/m5t4 ,sec4 #iijf4 ,allocation ( c>bon bord] fee adju/m5t rev5ues4 #iija4 ,def9itions ,= purposes ( ?is subtitle3 7#a7 ,adm9i/rator ,! t]m ,adm9i/rator means ! ,adm9i/rator ( ! ,environm5tal ,protection ,ag5cy4 7#b7 ,basel9e emissions ,! t]m basel9e emissions means ! av]age gre5h\se gas emissions ( a company's relevant sector1 z det]m9$ "u section #iijc7;a74 7#c7 ,b5*m>k emissions ,! t]m b5*m>k emissions means ! gre5h\se gas emissions ( ! highe/ emitt+ sites )9 a company's relevant sector 9 ! ,unit$ ,/ates1 z det]m9$ "u section #iijc7;b74 7#d7 ,bord] c>bon adju/m5t ,! t]m bord] c>bon adju/m5t means ! fee impos$ pursuant to section #iijd4 7#e7 ,,co#b-;e ,! t]m ,,co#b-;e means ! numb] ( metric tons ( c>bon dioxide emissions ) ! same global w>m+ pot5tial z "o metric ton ( ano!r gre5h\se gas4 7#f7 ,cov]$ fuel ,! t]m cov]$ fuel means natural gas1 petroleum1 coal1 or any o!r product d]iv$ f natural gas1 petroleum1 or coal t is us$ or may be us$ s z to emit gre5h\se gases to ! atmosph]e4 7#g7 ,cov]$ good ,! t]m cov]$ good means a cov]$ fuel or a product produc$ )9 a sector4 7#h7 ,dome/ic environm5tal co/ incurr$ ,! t]m dome/ic environm5tal co/ incurr$ means ! am\nt det]m9$ "u section #iijb4 7#i7 ,gre5h\se gas ,! t]m gre5h\se gas has ! same mean+ giv5 su* t]m "u p>agraph 7#c7 ( section #ija ( ! ,en]gy ,indep5d5ce & ,security ,act ( #bjjg 7#db ,u4,s4,c4 #agcba74 7#aj7 ,gre5h\se gas cont5t ,! t]m gre5h\se gas cont5t means ! am\nt ( gre5h\se gases1 express$ 9 metric tons ( ,,co#b-;e1 :i* w\ld be emitt$ to ! atmosph]e by ! use ( a cov]$ fuel4 7#aa7 ,import$ ,irrespective ( any o!r def9ition 9 law or treaty1 ! t]m import$ means to h l&$ on1 br\ght into1 or introduc$ into any place subject to ! jurisdiction ( ! ,unit$ ,/ates f a p]son or place outside ! ,unit$ ,/ates4 7#ab7 ,import] ,! t]m import] means a p]son :o1 = any reason1 br+s a product f a =eign c\ntry into ! ,unit$ ,/ates = consumption1 use1 or w>eh\s+4 7#ac7 ,production gre5h\se gas emissions ,! t]m production gre5h\se gas emissions means ! quantity ( gre5h\se gases1 express$ 9 metric tons ( ,,co#b-;e1 emitt$ to ! atmosph]e result+ f ! production1 manufacture1 or assembly ( a product1 z det]m9$ "u section #iije4 7#ad7 ,secret>y ,! t]m ,secret>y means ! ,secret>y ( ! ,treasury1 or ! ,secret>y's delegate4 7#ae7 ,sector ,! t]m sector means indu/rial facilities :i* produce "o ( ! foll[+ products3 7,a7 ,/eel4 7,b7 ,alum9um4 7,c7 ,cem5t4 7,d7 ,iron4 7,e7 ,any product id5tifi$ pursuant to section #iije7;e74 7,f7 ,any product = :i* great] ?an #ej p]c5t ! composition ( su* product consi/ ( a product describ$ 9 subp>agraphs 7,a7 ?r\gh 7,e74 7#af7 ,/ate ,! t]m ,/ate means any ( ! #ej ,/ates1 ! ,di/rict ( ,columbia1 or ! ,commonweal? ( ,pu]to ,rico4 7#ag7 ,up/ream gre5h\se gas emissions ,! t]m up/ream gre5h\se gas emissions means ! quantity ( gre5h\se gases1 express$ 9 metric tons ( ,,co#b-;e1 emitt$ to ! atmosph]e result+ f ! extraction1 process+1 transportation1 f9anc+1 or o!r prep>ation ( a cov]$ fuel = use1 z det]m9$ "u section #iije4 #iijb4 ,det]m9ation ( dome/ic environm5tal co/ incurr$ ,n lat] ?an ,july #a1 #bjbc1 & annually !reaft]1 ! ,secret>y 79 coord9ation ) ! ,director ( ! ,(fice ( ,managem5t & ,budget1 ! ,secret>y ( ,comm]ce1 ! ,secret>y ( ,en]gy1 ! ,adm9i/rator1 ! ,secret>y ( ,agriculture1 ! ,secret>y ( ,transportation1 ! ,unit$ ,/ates ,trade ,repres5tative1 & ! ,secret>y ( ! ,int]ior7 %all det]m9e ! dome/ic environm5tal co/ incurr$ = ea* sector1 & = ! production ( ea* cov]$ fuel1 bas$ on ! av]age co/ incurr$ by companies )9 su* sector 7or1 9 ! case ( a cov]$ fuel1 ! av]age co/ incurr$ to produce su* fuel7 to comply ) any ,f$]al1 ,/ate1 regional1 or local law1 regulation1 policy or program :i* is-- 7#a7 9 effect at ! "t ( su* det]m9ation1 includ+ any su* law1 regulation1 policy1 or program :i* is implem5t$ aft] ! date ( enactm5t ( ! ,,fair ,transition & ,competition ,act1 & 7#b7 design$ to limit or r$uce gre5h\se gas emissions1 includ+-- 7,a7 ! ,clean ,air ,act 7#db ,u4,s4,c4 #gdja71 7,b7 gre5h\se gas emissions /&>ds = pass5g] c>s & light trucks1 & 7,c7 any ,/ate1 regional1 or local law1 regulation1 policy1 or program t imposes a cap-&-trade sy/em ) respect to1 or a tax or fee on1 c>bon dioxide4 #iijc4 ,det]m9ation ( emissions = ea* sector 7a7 ,basel9e emissions ,n lat] ?an ,july #a1 #bjbc1 & annually !reaft]1 ! ,adm9i/rator %all det]m9e & publi% ! av]age gre5h\se gas emissions ( ea* sector dur+ ! prior cal5d> ye> 9 ord] to demon/rate ! am\nt ( progress made 9 r$uc+ gre5h\se gas emissions 9 ! ,unit$ ,/ates4 7b7 ,b5*m>k emissions ,n lat] ?an ,july #a1 #bjbc1 & annually !reaft]1 ! ,adm9i/rator %all det]m9e & publi% ! production gre5h\se gas emissions = ! top #a p]c5t ( ! emitt+ production sites )9 ea* sector 9 ! ,unit$ ,/ates dur+ ! prior cal5d> ye>4 #iijd4 ,bord] c>bon adju/m5t 7a7 ,bord] c>bon adju/m5t ,beg9n+ on ,janu>y #a1 #bjbd1 9 ! case ( any import] t imports a cov]$ good into ! ,unit$ ,/ates1 !re %all be impos$ a fee-- 7#a7 9 ! case ( a cov]$ fuel1 9 an am\nt equal to ! product (-- 7,a7 ! dome/ic environm5tal co/ incurr$ 9 ! production ( su* fuel1 multipli$ by 7,b7 ! up/ream gre5h\se gas emissions ( su* fuel1 7#b7 9 ! case ( a product produc$ )9 a sector :i* is n a cov]$ fuel1 9 an am\nt equal to ! product (-- 7,a7 ! dome/ic environm5tal co/ incurr$ = ! sector 9 :i* su* product 0 produc$1 multipli$ by 7,b7 ! production gre5h\se gas emissions ( ! product1 or 7#c7 9 ! case ( a product produc$ )9 a sector = :i* reliable data ) respect to ! production gre5h\se gas emissions ( su* product is n available1 9 an am\nt equal to ! product (-- 7,a7 ! b5*m>k emissions = ! sector :i* produc$ su* product1 multipli$ by 7,b7 ! dome/ic environm5tal co/ incurr$ = ! sector 9 :i* su* product 0 produc$4 7b7 ,exemptions 7#a7 ,9 g5]al ,n lat] ?an ,july #a1 #bjbc1 & annually !reaft]1 ! ,secret>y %all publi% an annual report :i* id5tifies all applicable c\ntries1 ) any cov]$ good import$ f an applicable c\ntry dur+ ! cal5d> ye> beg9n+ aft] ! date ( publication ( su* report to be exempt f ! bord] c>bon adju/m5t4 7#b7 ,applicable c\ntries ,= purposes ( ?is subsection1 ! t]m applicable c\ntry means-- 7,a7 any c\ntry includ$ on ! li/ ( ,lea/ ,develop$ ,c\ntries on ! mo/ rec5t ,developm5t ,assi/ance ,committee ,li/ ( ,(ficial ,developm5t ,assi/ance ,recipi5ts publi%$ by ! ,organisation = ,economic ,co-op]ation & ,developm5t1 & 7,b7 any c\ntry :i*-- 7i7 does n impose a bord] c>bon adju/m5t on products produc$ or manufactur$ 9 ! ,unit$ ,/ates1 & 7ii7 ! ,secret>y 79 coord9ation ) ! ,secret>y ( ,/ate1 ! ,unit$ ,/ates ,trade ,repres5tative1 ! ,secret>y ( ,comm]ce1 ! ,secret>y ( ,en]gy1 ! ,adm9i/rator1 ! ,secret>y ( ,agriculture1 ! ,secret>y ( ,transportation1 & ! ,secret>y ( ! ,int]ior7 det]m9es en=ces laws & regulations design$ to limit or r$uce gre5h\se gas emissions t are at lea/ z ambiti\s z ,f$]al laws & regulations design$ to limit or r$uce gre5h\se gas emissions4 #iije4 ,adm9i/ration ( bord] c>bon adju/m5t 7a7 ,9 g5]al ,! ,secret>y 79 consultation ) ! ,adm9i/rator1 ! ,unit$ ,/ates ,trade ,repres5tative1 & ! ,secret>y ( ,homel& ,security7 %all prescribe regulations & guidance to implem5t ! bord] c>bon adju/m5t4 7b7 ,me?odology ,9 det]m9+ ! production gre5h\se gas emissions ( a cov]$ good1 ! ,secret>y %all use reliable me?odologies :i*-- 7#a7 z may be necess>y or conv5i5t-- 7,a7 di/+ui% betwe5 diff]5t types ( cov]$ fuels1 7,b7 di/+ui% betwe5 a cov]$ fuel's gre5h\se gas cont5t & t cov]$ fuel's up/ream gre5h\se gas emissions1 7,c7 di/+ui% betwe5 ! diff]5t types ( gre5h\se gas emissions :i* compose a cov]$ fuel's up/ream gre5h\se gas emissions1 z well z ! v>i\s processes :i* produc$ ^? emissions1 & 7,d7 di/+ui% betwe5 ! diff]5t types ( gre5h\se gas emissions :i* compose a cov]$ good's production gre5h\se gas emissions1 z well z ! v>i\s processes :i* produc$ ^? emissions1 7#b7 ensure t no cov]$ good has ! bord] c>bon adju/m5t impos$ ^u x m ?an once1 & 7#c7 are consi/5t ) int]national treaties & agreem5ts1 includ+ free trade agreem5ts4 7c7 ,petition proc$ure ,! ,secret>y %all e/abli% fair1 timely1 imp>tial1 &1 to ! ext5t necess>y1 confid5tial proc$ures by :i* ! import] ( any cov]$ good may petition ! ,secret>y to revise ! ,secret>y's det]m9ation ( ! production gre5h\se gas emissions ( t import]'s cov]$ good4 7d7 ,int]national negotiations ,! ,secret>y ( ,/ate & ! ,unit$ ,/ates ,trade ,repres5tative %all engage ) o!r c\ntries reg>d+ r$uc+ global gre5h\se gas emissions ?r\gh trade & ensur+ fairness 9 ! application ( emissions-bas$ t>iffs4 7e7 ,additional sectors ,! ,secret>y 79 consultation ) ! ,director ( ! ,(fice ( ,managem5t & ,budget1 ! ,secret>y ( ,comm]ce1 ! ,secret>y ( ,en]gy1 ! ,adm9i/rator1 ! ,secret>y ( ,agriculture1 ! ,secret>y ( ,transportation1 ! ,secret>y ( ! ,int]ior1 & ! ,unit$ ,/ates ,trade ,repres5tative7 %all1 = purposes ( section #iija7ae77;,c71 annually id5tify any product = :i* ! ,secret>y det]m9es-- 7#a7 !re is reliable data = det]m9+ ! production gre5h\se gas emissions ( su* product1 & 7#b7 t x is 9 ! int]e/ ( ! ,unit$ ,/ates to include su* product "u section #iija7ae7 = purposes ( application ( ! bord] c>bon adju/m5t ) respect to su* product4 #iijf4 ,allocation ( c>bon bord] fee adju/m5t rev5ues ,) respect to ! rev5ues collect$ "u section #iijd-- 7#a7 su* rev5ues %all be us$ to supplem5t appropriations made available 9 fiscal ye> #bjbd & ea* fiscal ye> !reaft] to ,u4,s4 ,cu/oms & ,bord] ,protection1 9 su* am\nts z are necess>y to adm9i/] ! bord] c>bon adju/m5t1 & 7#b7 f any am\nts rema9+ foll[+ any supplem5tal appropriation made ) respect to am\nts describ$ 9 p>agraph 7#a7-- 7,a7 #ej p]c5t ( su* am\nts rema9+ %all be us$ to provide grants to ,/ates z prescrib$ 9 section #c ( ! ,,fair ,transition & ,competition ,act1 & 7,b7 #ej p]c5t ( su* am\nts rema9+ %all be available1 z provid$ by appropriation ,acts1 = mak+ exp5ditures to support ! high-impact rese>*1 developm5t1 demon/ration1 te*nology transf]1 comm]cialization1 & export ( te*nologies t r$uce or elim9ate gre5h\se gas emissions4 4 #c4 ,resili5t communities grant program 7a7 ,9 g5]al ,! ,secret>y %all provide to ea* ,/ate a ,resili5t ,communities ,grant no lat] ?an ,april #a1 #bjbe1 & ea* cal5d> ye> !reaft]1 9 an am\nt det]m9$ "u subsection 7c74 7b7 ,eligible purposes ,a ,/ate receiv+ a ,resili5t ,communities ,grant "u ?is section %all use ! am\nt ( ea* su* grant z foll[s3 7#a7 ,to provide job tra9+ & work] transition assi/ance1 ) priority giv5 to work]s & =m] work]s 9 fossil fuel-relat$ indu/ries4 7#b7 ,to assi/ municipalities1 c\nties1 or o!r political subdivisions ( ! ,/ate 9-- 7,a7 develop+ climate vuln]ability assessm5ts & adaptation plans to help build resili5ce to rapid-onset & sl[-onset climate haz>ds2 & 7,b7 implem5t+ su* plans1 :i* may include b are n limit$ to su* projects z climate-sm>t infra/ructure1 agricultural climate solutions1 & natural climate solutions to build climate resili5ce & support c>bon seque/ration4 7#c7 ,to directly assi/ frontl9e communities :o are exp]i5c+ ! e>lie/1 mo/ sev]e ?reats f climate *ange ) te*nical assi/ance & res\rces to und]take ef=ts to build climate resili5ce4 7#d7 ,alleviate hi/orical burd5s impos$ ^u communities ( color1 l[-income communities1 ,tribal & ,indig5\s communities1 fossil fuel-dep5d5t communities1 & o!r vuln]able populations t h be5 hi/orically "u-res\rc$ due to inequities 9 res\rce allocation or disproportionately burd5$ by environm5tal haz>ds1 includ+ exposure to climate risks & pollut$ air1 wat]ways1 & l&scapes4 7#e7 ,to provide relocation assi/ance to individuals & populations :5 climate *ange or ! en]gy transition ?reat5s _! heal?1 well-be+1 or livelihood4 7#f7 ,to assi/ small bus9esses t are disproportionately impact$ by ! bord] c>bon adju/m5t impos$ "u subtitle ,l ( ! ,int]nal ,rev5ue ,code ( #aihf 7z add$ by section #b ( ?is ,act74 7c7 ,am\nt ( grant 7#a7 ,9 g5]al ,! am\nt ( ! ,resili5t ,communities ,grant made to any ,/ate = any cal5d> ye> %all be equal to ! product (-- 7,a7 ! total am\nt made available "u section #iijf7b77;,a7 ( ! ,int]nal ,rev5ue ,code ( #aihf 7z add$ by ?is ,act7 bas$ on rev5ue collect$ 9 ! prior cal5d> ye>2 & 7,b7 ! ,/ate allocation p]c5tage = ! ,/ate 7z det]m9$ "u p>agraph 7#b774 7#b7 ,/ate allocation p]c5tage ,n lat] ?an ,decemb] #a1 #bjbd1 & ea* cal5d> ye> !reaft]1 ! ,secret>y 79 coord9ation ) ! ,adm9i/rator ( ! ,environm5tal ,protection ,ag5cy1 ! ,secret>y ( ,comm]ce1 ! ,secret>y ( ,labor1 ! ,secret>y ( ,homel& ,security1 ! ,secret>y ( ,transportation1 ! ,secret>y ( ,agriculture1 & ! ,secret>y ( ,en]gy7 %all e/abli% ! =mula = det]m9+ ! ,/ate allocation p]c5tage = ! foll[+ cal5d> ye>1 :i*1 = ea* ,/ate1 %all take into acc\nt-- 7,a7 ! p]c5tage ( ! population ( ! ,unit$ ,/ates resid+ 9 su* ,/ate2 7,b7 ! vuln]ability ( su* /ate to climate *ange2 & 7,c7 ! p]c5tage ( ! total ,unit$ ,/ates work=ce employ$ 9 fossil fuel relat$ indu/ries :o are employ$ 9 su* indu/ries 9 su* ,/ate4 7#c7 ,climate vuln]ability ,9 acc\nt+ = ! vuln]ability ( ea* ,/ate to climate *ange "u p>agraph 7#b77;,b7 = ! purposes ( det]m9+ ! ,/ate allocation p]c5tage1 ! p>ties id5tifi$ 9 p>agraph 7#b7 %all-- 7,a7 at a m9imum1 consid] ! pot5tial risks f rapid-onset & sl[-onset climate haz>ds to-- 7i7 human heal? & safety2 7ii7 infra/ructure & o!r physical assets2 & 7iii7 natural & agricultural sy/ems2 7,b7 acc\nt = ! disproportionate impact ( climate *ange on socially vuln]able communities2 7,c7 ensure ! me?ods = det]m9+ climate vuln]ability d n result 9 a =mula = ,/ate allocation t inequitably allocates res\rces to specific communities bas$ on race1 socioeconomic /atus1 or o!r su* *>act]i/ics2 & 7,d7 utilize relevant compon5ts ( exi/+ metrics & indicators ( climate vuln]ability 9 ! ,unit$ ,/ates :]ev] possible1 includ+ b n limit$ to-- 7i7 ! ,,fema ,national ,risk ,index2 & 7ii7 ov] ! pa/ #e ye>s1 ! ,/ate's proportion (-- 7,i7 ,national ,flood ,insurance ,program claims2 7,,ii7 ,fire ,mitigation ,assi/ance ,grants2 & 7,,iii7 ,,usda fa/ track dr\ght designations4 7#d7 ,m9imum ,/ate allocation ,= purposes ( subp>agraph 7,b71 ! ,/ate allocation p]c5tage = any ,/ate %all n be less ?an #a p]c5t4 7#e7 ,v]ification ,! ,secret>y %all v]ify ! ,/ate use ( grants "u ?is subsection to ensure su* uses comply ) ! requirem5ts ( ?is section4 ,! ,secret>y may )hold a grant "u ?is subsection if ! ,secret>y det]m9es t a ,/ate has n compli$ ) su* requirem5ts4 7d7 ,def9itions ,9 ?is section3 7#a7 ,secret>y ,! t]m ,secret>y means ! ,secret>y ( ! ,treasury or ! ,secret>y's delegate4 7#b7 ,sl[-onset climate haz>d ,! t]m sl[-onset climate haz>d means a ?reat f climate *ange t evolves gradually due to increm5tal *ange or because ( an increas+ frequ5cy or int5sity ( recurr+ climate impacts1 includ+-- 7,a7 sea level rise2 7,b7 des]tification2 7,c7 biodiv]sity loss2 7,d7 increas+ temp]atures2 7,e7 ocean acidification2 7,f7 soil sal9ization2 7,g7 dr\ght2 7,h7 l& & natural res\rce degradation2 7,i7 glacial retreat or r$uc$ sn[ pack1 & relat$ impacts2 & 7,j7 p]mafro/ ?aw4 7#c7 ,/ate ,! t]m ,/ate means any ( ! #ej ,/ates1 ! ,di/rict ( ,columbia1 or ! ,commonweal? ( ,pu]to ,rico4