,i #aaith ,,congress #ast ,session ,h4 ,r4 #dhj ,,in ,,the ,,house ,,of ,,representatives ,january #af1 #bjbe ,ms4 ,brownley introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to establish a methane border adjustment mechanism4 #a4 ,short title ,this ,act may be cited as the ,methane ,border ,adjustment ,mechanism ,act4 #b4 ,findings ,congress finds the following3 7#a7 ,methane is a powerful greenhouse gas1 with about #hj times the warming power of carbon dioxide on a #bj-year time horizon4 7#b7 ,rigorous estimates suggest that at least #be percent of the rise in global temperatures since the industrial revolution is due to methane emissions4 7#c7 ,public health experts believe that methane is a key contributor to the formation of ground level ozone and particulate pollution1 which causes a wide range of cardiovascular and lung-related diseases4 7#d7 ,these facts suggest that methane is a threat to human1 animal1 and plant life and health4 7#e7 ,the intended purpose of enacting a methane border adjustment mechanism 7,,mbam7 is to conserve exhaustible natural resources by preventing emissions and is made effective in conjunction with regulations and charges on methane emissions from domestic oil and natural gas producers under section #acf of the ,clean ,air ,act 7#db ,u4,s4,c4 #gdcf74 7#f7 ,highly cost-effective methods of reducing methane emissions--such as ,m,b,a,ms--have been well-studied and are ready for implementation4 7#g7 ,research suggests that while the impact of an ,,mbam on the price of fossil fuels would likely be minimal1 it could have a significant impact on methane emissions4 7#h7 ,by working with countries that are major importers of oil and gas to enact similar ,m,b,a,ms1 in partnership with the ,european ,union1 having already enacted its own border measure1 the ,united ,states ,government can both help strengthen the market for exports of clean ,united ,states gas and encourage other oil and gas producing countries to reduce their methane emissions4 #c4 ,establishment of methane border adjustment mechanism 7a7 ,in general ,chapter #ch of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subchapter3 ,e ,methane border adjustment mechanism ,sec4 #dfia4 ,methane border adjustment mechanism4 #dfia4 ,methane border adjustment mechanism 7a7 ,in general ,there is hereby imposed a tax on any methane adjustment substance sold or used by the importer thereof4 7b7 ,amount of tax 7#a7 ,in general ,the amount of tax imposed under subsection 7a7 with respect to any methane adjustment substance shall be the amount that bears the same ratio to the total methane emissions charge for the country in which such substance was produced or extracted 7determined for the second calendar year preceding the calendar year of such sale or use7 as-- 7,a7 the volume of such substance1 bears to 7,b7 the total volume of such substance produced or extracted in such country 7determined for such second preceding calendar year74 7#b7 ,total methane emissions charge ,for purposes of this section1 the term total methane emissions charge means1 with respect to any foreign country1 the total amount of charges with respect to facilities located in such country which would be imposed under section #acf of the ,clean ,air ,act 7#db ,u4,s4,c4 #gdcf7 if-- 7,a7 such facilities were located in the ,united ,states1 and 7,b7 subsection 7c7 of such section were applied without regard to that reports more than #be1jjj metric tons of carbon dioxide and all that follows4 ,except as otherwise provided by the ,secretary in paragraph 7#d71 the total methane emissions charge with respect to any foreign country shall be determined separately with respect to each methane adjustment substance4 7#c7 ,natural gas measured by energy content ,in the case of natural gas1 subparagraphs 7,a7 and 7,b7 of paragraph 7#a7 shall each be applied by substituting energy content for volume4 7#d7 ,methane adjustment substances produced or extracted in more than #a country ,the ,secretary shall provide rules for determining the tax imposed under paragraph 7#a7 with respect to a substance which was produced or extracted in more than #a country which determines such tax on the basis of the proportion of the production or extraction that occurred in such country4 7c7 ,methane adjustment substance 7#a7 ,in general ,the term methane adjustment substance means petroleum and natural gas4 7#b7 ,recommendation of additional substances 7,a7 ,in general ,not later than #b years after the date of the enactment of this ,act1 and each #b years thereafter1 the ,secretary shall submit a written report to ,congress regarding whether additional substances that are reliant on oil and natural gas as a feedstock in industrial processes1 or otherwise have notable embodied methane emissions1 should be added to the list of methane adjustment substances subject to this section4 7,b7 ,consultation ,in assessing substances to recommend for inclusion under this paragraph1 the ,secretary shall consult with the ,united ,states ,international ,trade ,commission and ,international ,trade ,administration on whether domestic producers1 including specific domestic facilities1 have lower embodied methane emissions than producers in other countries4 7,c7 ,analysis ,each report under this paragraph shall be accompanied by an analysis prepared by the ,secretary1 after consultation with the ,united ,states ,international ,trade ,commission1 of-- 7i7 the effect of the proposed expansion of the methane border adjustment mechanism to include additional substances1 and 7ii7 the economic1 employment1 and environmental costs in the ,united ,states if the expansion does not include such additional substances4 7d7 ,estimates 7#a7 ,in general ,the total methane emissions charge1 and the amount described in subsection 7b77#a77;,b71 with respect to any foreign country for any calendar year shall be determined by the ,secretary on the basis of publicly available information4 7#b7 ,establishment of international body to collect and report information ,the ,secretary1 in consultation with the governments of countries that are major importers and exporters of methane adjustment substances1 shall facilitate the establishment of an international body responsible for providing for international consultations for the establishment of interoperable standards1 establishing a multi-stage certification process to track emissions throughout supply chains1 and collecting and reporting data related to methane emissions4 ,standards developed under the preceding sentence shall be updated not less frequently than every #b years4 7e7 ,alternative tax based on supply chain emissions 7#a7 ,in general ,in the case of any methane adjustment substance which meets the requirements of paragraph 7#b71 the ,secretary shall establish an alternative method 7in lieu of subsection 7b77 for determining the amount of tax imposed under subsection 7a7 which takes into account only such substance's pro rata share of the charges which would be imposed under section #acf of the ,clean ,air ,act 7#db ,u4,s4,c4 #gdcf7 7determined with the adjustments described in subparagraphs 7,a7 and 7,b7 of subsection 7b77#b77 with respect to facilities in the supply chain of such methane adjustment substance4 7#b7 ,requirements ,the requirements of this paragraph are met if-- 7,a7 the importer of the methane adjustment substance provides the ,secretary such information as the ,secretary may require to determine all of the facilities in the supply chain of such substance1 the total production of such facilities1 and the relevant methane emissions therefrom1 and 7,b7 each country in which such facilities are located is a country with which the ,customs-,trade ,partnership ,against ,terrorism 7,c-,,tpat7 has signed mutual recognition arrangements with the customs administration of such country4 4 7b7 ,international cooperation on methane border adjustment mechanisms ,the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall encourage the #aj countries with the highest oil and gas imports that do not yet have methane border adjustment mechanisms to-- 7#a7 implement equally stringent border adjustment mechanisms1 and 7#b7 participate in the creation of the international body referred to in section #dfia7;d77#b7 of the ,internal ,revenue ,code of #aihf1 as added by this section4 7c7 ,clerical amendment ,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--,methane border adjustment mechanism 4 7d7 ,effective date ,the amendments made by this section shall apply to sales and uses after ,december #ca1 #bjbe4