,,ii #aahth ,,congress #ast ,session ,s4 #bhdd ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,september #ai1 #bjbc,mr4 ,whitehouse 7for himself1 ,mr4 ,wyden1 ,mr4 ,van ,hollen1 ,mr4 ,menendez1 and ,mr4 ,blumenthal7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to establish an excise tax on plastics4 #a4 ,short title ,this ,act may be cited as the ,rewarding ,efforts to ,decrease ,unrecycled ,contaminants in ,ecosystems ,act of #bjbc or the ,,reduce ,act of #bjbc4 #b4 ,excise tax on plastics 7a7 ,in general ,chapter #ch of the ,internal ,revenue ,code of #aihf is amended by adding at the end thereof the following new subchapter3 ,e ,tax on plastics ,sec4 #dfia4 ,imposition of tax4 ,sec4 #dfib4 ,definitions and special rules4 #dfia4 ,imposition of tax 7a7 ,general rule ,there is hereby imposed-- 7#a7 a tax on-- 7,a7 the entry into the ,united ,states of any taxable virgin plastic resin for consumption1 use1 or warehousing1 and 7,b7 the sale of any taxable virgin plastic resin sold by an applicable entity unless there was a prior taxable entry of such resin under subparagraph 7,a71 and 7#b7 a tax on the entry into the ,united ,states of any imported covered item4 7b7 ,amount of tax 7#a7 ,taxable virgin plastic resin 7,a7 ,in general ,the amount of the tax imposed under subsection 7a77#a7 shall be determined in accordance with the following table3 ,for any entry or sale during calendar year3,the tax is the following amount per pound of taxable virgin plastic resin3#bjbdaj cents#bjbeae cents#bjbfbj cents#bjbg or thereafter,adjusted amount4 7,b7 ,adjusted amount 7i7 ,in general ,for purposes of subparagraph 7,a71 the adjusted amount for any entry or sale during any calendar year beginning after ,december #ca1 #bjbf1 shall be equal to the sum of-- 7,i7 #bj cents1 plus 7,,ii7 an amount equal to-- 7aa7 #bj cents1 multiplied by 7bb7 the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year1 determined by substituting calendar year #bjbe for calendar year #bjaf in subparagraph 7,a77ii7 thereof4 7ii7 ,rounding ,if any amount determined under clause 7i7 is not a multiple of #a cent1 such amount shall be rounded to the nearest multiple of #a cent4 7#b7 ,imported covered items 7,a7 ,in general ,except as provided in subparagraph 7,b71 the amount of the tax imposed under paragraph 7#b7 of subsection 7a7 on any imported covered item shall be an amount equal the product of-- 7i7 the weight of such covered item 7expressed in pounds71 multiplied by 7ii7 #bj cents4 7,b7 ,authority to prescribe alternate rate ,with respect to any imported covered item for which the importer demonstrates to the satisfaction of the ,secretary that such item is not entirely comprised of taxable virgin plastic resin1 the ,secretary may prescribe1 in lieu of the rate of tax specified under subparagraph 7,a71 an alternative rate of tax with respect to such item for purposes of subsection 7a77#b74 7c7 ,applicable entity 7#a7 ,in general ,for purposes of this section1 the term applicable entity means any manufacturer1 producer1 or importer of taxable virgin plastic resin4 7#b7 ,exemption 7,a7 ,in general ,the term applicable entity shall not include any manufacturer1 producer1 or importer of taxable virgin plastic resin which1 with respect to any taxable year-- 7i7 7,i7 in the case of a manufacturer or producer1 for the taxable year preceding such taxable year1 manufactured or produced not greater than #aj tons of taxable virgin plastic resin1 or 7,,ii7 in the case of an importer1 for the taxable year preceding such taxable year1 imported not greater than #aj tons of taxable virgin plastic resin1 and 7ii7 meets the gross receipts test of section #ddh7;c7 for such taxable year4 7,b7 ,aggregation rule ,for purposes of this paragraph1 all persons treated as a single employer under subsection 7a7 or 7b7 of section #eb or subsection 7m7 or 7o7 of section #dad shall be treated as a single manufacturer1 producer1 or importer4 7,c7 ,administration ,the ,secretary shall prescribe such regulations or other guidance as may be necessary to administer this paragraph1 and may require information reporting from any manufacturer1 producer1 or importer seeking application of subparagraph 7,a74 7d7 ,exportation 7#a7 ,in general ,no tax shall be imposed under this section upon the sale of any taxable virgin plastic resin or imported covered item for export1 and in due course so exported4 7#b7 ,credit or refund where tax paid 7,a7 ,in general ,except as provided in subparagraph 7,b71 if-- 7i7 tax under subsection 7a7 was paid with respect to any taxable virgin plastic resin or any imported covered item1 and 7ii7 such resin or item was exported by any person1 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 such person-- 7i7 has repaid or agreed to repay the amount of the tax to the person who exported the taxable virgin plastic resin or imported covered item1 or 7ii7 has obtained the written consent of such exporter to the allowance of the credit or the making of the refund4 7#c7 ,refunds directly to exporter ,the ,secretary shall provide1 in regulations1 the circumstances under which a credit or refund 7without interest7 of the tax under subsection 7a7 shall be allowed or made to the person who exported the taxable virgin plastic resin or imported covered item1 where-- 7,a7 the person who paid the tax waives their claim to the amount of such credit or refund1 and 7,b7 the person exporting the taxable virgin plastic resin or imported covered item provides such information as the ,secretary may require in such regulations4 #dfib4 ,definitions and special rules 7a7 ,definitions ,for purposes of this subchapter-- 7#a7 ,covered item 7,a7 ,in general ,the term covered item means a single-use product which contains taxable virgin plastic resin1 including any packaging1 food service product1 beverage container1 or bag4 7,b7 ,exclusion ,the term covered item shall not include-- 7i7 a medical product which-- 7,i7 is regulated under-- 7aa7 the ,federal ,food1 ,drug1 and ,cosmetic ,act1 or 7bb7 the ,public ,health ,service ,act1 and 7,,ii7 the ,secretary of ,health and ,human ,services declares needs to be made of virgin plastic for public health or the health of the user1 7ii7 a container for-- 7,i7 a drug1 7,,ii7 infant formula1 7,,iii7 a meal replacement liquid1 7,,iv7 a biologic1 or 7,v7 a medical device1 7iii7 a personal or feminine hygiene product that could be unsafe or unsanitary to recycle1 7iv7 a sexual health product1 or 7v7 packaging-- 7,i7 for a product described in clauses 7i7 through 7iv71 or 7,,ii7 used for the shipment of hazardous materials that is prohibited from being composed of used materials under section #agh4eji or #agh4ebb of title #di1 ,code of ,federal ,regulations 7as in effect on the date of enactment of this subchapter74 7,c7 ,other terms 7i7 ,bag ,the term bag means a container which is-- 7,i7 a single-use product which contains taxable virgin plastic resin1 and 7,,ii7 made of flexible material with an opening and used for carrying items4 7ii7 ,beverage container ,the term beverage container means a vessel for beverages-- 7,i7 which is a single-use product which contains taxable virgin plastic resin1 and 7,,ii7 the volume of which is not greater than #c liters4 7iii7 ,food service product ,the term food service product means an item-- 7,i7 which is a single-use product which contains taxable virgin plastic resin1 and 7,,ii7 designed to deliver a food product1 including a utensil1 straw1 drink cup1 drink lid1 food package1 food container1 plate1 bowl1 meat tray1 or food wrap4 7iv7 ,packaging 7,i7 ,in general ,the term packaging means a package1 container1 packing materials1 or other material-- 7aa7 which is a single-use product which contains taxable virgin plastic resin1 and 7bb7 used for the containment1 protection1 handling1 delivery1 or presentation of goods4 7,,ii7 ,products included as packaging ,the term packaging shall include any item described in subclause 7,i7 which is-- 7aa7 intended for the consumer market1 7bb7 service packaging designed and intended to be used or filled at the point of sale1 such as carry-out bags1 bulk good bags1 take-out bags1 and home delivery food service packaging1 7cc7 secondary packaging used to group products for multiunit sale1 7dd7 tertiary packaging used for transportation or distribution directly to a consumer1 or 7ee7 an ancillary element hung or attached to a product and performing a packaging function4 7v7 ,single-use product ,the term single-use product means a product which is-- 7,i7 routinely disposed of after a single use or after its contents have been used or unpackaged1 and typically not refilled1 and 7,,ii7 not durable1 washable1 or routinely used for one of the purposes for which it was designed multiple times before disposal4 7#b7 ,imported covered item ,the term imported covered item means any covered item-- 7,a7 entered into the ,united ,states for consumption1 use1 or warehousing1 and 7,b7 which is-- 7i7 intended for subsequent sale or use1 and 7ii7 at the time such item is entered into the ,united ,states1 not used as a container or packaging for a different product which is not itself a covered item4 7#c7 ,taxable virgin plastic resin 7,a7 ,in general ,the term taxable virgin plastic resin means any resin-- 7i7 which is derived from petroleum or gas 7including ethylene1 propylene1 polyethylene1 polypropylene1 polystyrene1 and polyvinyl chloride71 and 7ii7 which is manufactured or produced in the ,united ,states or entered into the ,united ,states for consumption1 use1 or warehousing4 7,b7 ,exclusion of post-consumer recycled resin ,the term taxable virgin plastic resin shall not include any resin which is established to the satisfaction of the ,secretary to be reprocessed from recovered material so that it can be used in place of resin described in clause 7i7 of subparagraph 7,a74 7#d7 ,united ,states ,the term ,united ,states has the meaning given such term by section #dfab7;a77#d74 7#e7 ,importer ,the term importer means the person entering the taxable virgin plastic resin or covered item into the ,united ,states for consumption1 use1 or warehousing4 7b7 ,fraction of a pound ,in the case of a fraction of a pound1 the tax imposed by section #dfia shall be the same fraction of the amount of such tax imposed on a whole pound4 7c7 ,use treated as sale ,if any applicable entity manufactures1 produces1 or imports any taxable virgin plastic resin and uses such resin1 then such person shall be liable for tax under section #dfia in the same manner as if such resin were sold by such entity4 7d7 ,exception for certain uses 7#a7 ,in general ,under regulations prescribed by the ,secretary1 in the case of any taxable virgin plastic resin for which the manufacturer1 producer1 or importer of such resin-- 7,a7 certifies that such resin will only be used in the manufacture or production within the ,united ,states of any product which is not a covered item1 and 7,b7 satisfies the registration requirements under paragraph 7#b71 no tax shall be imposed under section #dfia7;a77#a74 7#b7 ,registration 7,a7 ,in general ,with respect to any taxable year1 the ,secretary shall require any person seeking an exemption under paragraph 7#a7 to register with the ,secretary at such time1 in such form and manner1 and subject to such terms and conditions1 as the ,secretary may by regulations prescribe4 ,a registration under this paragraph may be used only in accordance with regulations prescribed under this paragraph4 7,b7 ,registration in event of change in ownership ,under regulations prescribed by the ,secretary1 a person 7other than a corporation the stock of which is regularly traded on an established securities market7 shall be required to re-register under this paragraph if after a transaction 7or series of related transactions7 more than #ej percent of ownership interests in1 or assets of1 such person are held by persons other than persons 7or persons related thereto7 who held more than #ej percent of such interests or assets before the transaction 7or series of related transactions74 7,c7 ,denial1 revocation1 or suspension of registration ,rules similar to the rules of section #dbbb7;c7 shall apply to registration under this paragraph4 7,d7 ,information reporting ,the ,secretary may require-- 7i7 information reporting by any person registered under this paragraph1 and 7ii7 information reporting by such other persons as the ,secretary deems necessary to carry out this paragraph4 7#c7 ,sales to certain small buyers 7,a7 ,in general ,under regulations prescribed by the ,secretary1 in the case of any taxable virgin plastic resin which is sold by the manufacturer1 producer1 or importer of such resin to a person who-- 7i7 meets the gross receipts test of section #ddh7;c7 for the taxable year in which such resin is sold1 and 7ii7 provides such manufacturer1 producer1 or importer with a certificate which includes-- 7,i7 the name and address of such person1 7,,ii7 the applicable period 7not to exceed #d calendar quarters7 for which the certificate applies1 and 7,,iii7 a statement that-- 7aa7 such person satisfies the requirement under clause 7i71 and 7bb7 such resin will only be used in the manufacture or production within the ,united ,states of any product which is not a covered item1 no tax shall be imposed under section #dfia7;a77#a74 7#d7 ,taxation of nonqualified use ,for purposes of section #dfia7;a77#a71 if no tax was imposed by such section on the sale of any taxable virgin plastic resin by reason of paragraph 7#a7 or paragraph 7#c71 the first person who uses such resin in a manner other than a use described in such paragraph shall be treated as the manufacturer of such resin4 7e7 ,refund or credit for certain uses ,under regulations prescribed by the ,secretary1 if-- 7#a7 a tax under section #dfia7;a77#a7 was paid with respect to any taxable virgin plastic resin1 and 7#b7 such resin was used by any person in the manufacture or production within the ,united ,states of any product which is not a covered item1 then an amount equal to the tax so paid shall be allowed as a credit or refund 7without interest7 to such person in the same manner as if it were an overpayment of tax imposed by such section4 7f7 ,disposition of revenues from ,puerto ,rico and the ,virgin ,islands ,the provisions of subsections 7a77#c7 and 7b77#c7 of section #gfeb shall not apply to any tax imposed by section #dfia4 7g7 ,imposition of floor stocks taxes 7#a7 ,in general 7,a7 ,in general ,if1 on any tax-increase date1 any taxable virgin plastic resin or imported covered item is held by any person 7other than the manufacturer1 producer1 or importer thereof7 for sale or for use in further manufacture1 there is hereby imposed a floor stocks tax4 7,b7 ,amount of tax ,the amount of the tax imposed by subparagraph 7,a7 shall be the excess 7if any7 of-- 7i7 the tax which would be imposed under section #dfia-- 7,i7 in the case of any taxable virgin plastic resin1 on such resin if the sale of such resin by the applicable entity had occurred on the tax-increase date1 or 7,,ii7 in the case of any imported covered item1 on such item if the entry or withdrawal of such item by the importer thereof had occurred on the tax-increase date1 over 7ii7 the prior tax 7if any7 imposed by this subchapter on such resin or item4 7,c7 ,tax-increase date ,for purposes of this paragraph1 the term tax-increase date means ,january #a of any calendar year4 7#b7 ,due date ,the taxes imposed by this subsection on ,january #a of any calendar year shall be paid on or before ,june #cj of such year4 7#c7 ,application of other laws ,all other provisions of law1 including penalties1 applicable with respect to the taxes imposed by section #dfia shall apply to the floor stocks taxes imposed by this subsection4 7h7 ,regulations ,the ,secretary shall prescribe such regulations as may be necessary to carry out the provisions of this subchapter4 4 7b7 ,plastic ,waste ,reduction ,fund ,subchapter ,a of chapter #ih of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #ieab4 ,plastic ,waste ,reduction ,fund 7a7 ,establishment and funding ,there is hereby established in the ,treasury of the ,united ,states a trust fund to be referred to as the ,plastic ,waste ,reduction ,fund1 consisting of such amounts as may be appropriated or credited to such trust fund as provided for in this section and section #ifjb7;b74 7b7 ,transfers to the ,plastic ,waste ,reduction ,fund ,there are hereby appropriated to the ,plastic ,waste ,reduction ,fund amounts equivalent to the taxes received in the ,treasury under section #dfia4 7c7 ,expenditures from the ,plastic ,waste ,reduction ,fund ,subject to subsection 7d71 amounts in the ,plastic ,waste ,reduction ,fund shall be available1 as provided by appropriation ,acts1 for making expenditures-- 7#a7 to carry out reduction1 recycling1 and reuse activities1 including-- 7,a7 making improvements to recycling infrastructure1 or 7,b7 establishing or improving infrastructure for reuse and refill systems1 7#b7 to carry out plastic waste and marine debris reduction1 detection1 monitoring1 and cleanup activities of-- 7,a7 the grant programs established under section #cjb of the ,save ,our ,seas #b4j ,act 7#cc ,u4,s4,c4 #dbhb71 7,b7 the ,marine ,debris ,program established by section #c of the ,marine ,debris ,act 7#cc ,u4,s4,c4 #aieb71 7,c7 the ,marine ,debris ,foundation established by section #aaa of the ,save ,our ,seas #b4j ,act 7#cc ,u4,s4,c4 #dbaa71 and 7,d7 other ,federal programs carrying out such activities1 and 7#c7 to address environmental justice and pollution impacts from plastic production4 7d7 ,prohibition on certain expenditures ,no amount in the ,plastic ,waste ,reduction ,fund shall be available for making any expenditure relating to-- 7#a7 the use of waste-- 7,a7 as a fuel or fuel substitute1 7,b7 for energy production1 7,c7 for alternative daily cover1 or 7,d7 within the footprint of a landfill1 or 7#b7 the conversion of waste into alternative products 7such as chemicals1 feedstocks1 fuels1 or energy7 through-- 7,a7 incineration1 7,b7 pyrolysis1 7,c7 hydropyrolysis1 7,d7 methanolysis1 7,e7 gasification1 or 7,f7 any method similar to the methods described in subparagraphs 7,a7 through 7,e71 as identified by the ,secretary4 4 7c7 ,clerical amendments 7#a7 ,the table of subchapters for chapter #ch of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new item3 ,subchapter ,e--,tax on ,plastics 4 7#b7 ,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 ,plastic ,waste ,reduction ,fund4 4 7d7 ,effective date ,the amendments made by this section shall take effect on ,january #a1 #bjbd4