,,ii #aaith ,,congress #ast ,session ,s4 #be ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,january #g1 #bjbe,mr4 ,van ,hollen 7for himself1 ,mr4 ,sanders1 ,mr4 ,merkley1 ,mr4 ,markey1 and ,ms4 ,warren7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to impose an assessment related to fossil fuel emissions1 to establish the ,polluters ,pay ,climate ,fund1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,polluters ,pay ,climate ,fund ,act of #bjbe4 #b4 ,findings ,congress finds that-- 7#a7 climate change1 resulting primarily from the combustion of fossil fuels1 is an immediate1 grave threat to the communities1 environment1 and economy of the ,united ,states2 7#b7 severe consequences of climate change have already materialized in the ,united ,states1 including rising sea levels1 increasing temperatures1 extreme weather events1 flooding1 heat waves1 loss of biodiversity1 and other climate change-driven ecosystem threats2 7#c7 the ,federal government jointly with ,states and localities must develop and implement protective measures to counteract the adverse effects of climate change1 protect communities1 and build resilience to extreme weather2 7#d7 the government response must include protections for communities that are most vulnerable to climate change impacts1 especially communities of color1 low-income communities1 and ,tribal and ,indigenous communities that are also more likely to have experienced systemic disinvestment and be overburdened by fossil fuel pollution2 7#e7 the protective measures necessary to respond to the adverse effects of climate change in the ,united ,states will require trillions of dollars of new investment during the decade after the date of enactment of this ,act2 7#f7 climate change related extreme weather events1 such as those described in paragraph 7#b71 cost the ,united ,states at least #aej1jjj1jjj1jjj each year and disproportionately affect underserved and overburdened communities1 according to the ,fifth ,national ,climate ,assessment2 7#g7 the #ajj1jjj1jjj1jjj each year that fossil fuel companies are collectively assessed for the ,polluters ,pay ,climate ,fund established in this ,act represents only a small portion of the total cost to the ,federal government to respond to climate change related extreme weather events and make needed climate change adaptation and resilience investments2 7#h7 peer-reviewed research can now determine with great accuracy the share of carbon dioxide released into the atmosphere by the operations and products of specific fossil fuel companies1 which is what informs the formulas to determine carbon dioxide emissions that are used in the amendments made by this ,act2 7#i7 the fossil fuel industry has been aware of the central role that their product plays in causing climate change since before the year #bjjj2 7#aj7 the fossil fuel industry must now increase their contribution to government expenditures to protect the ,nation from climate disaster2 and 7#aa7 this ,act and assessments under the amendments made by this ,act are not intended-- 7,a7 to be a determination of fault2 or 7,b7 to have any impact on the ability of any person or other government to hold polluters accountable for harms caused4 #c4 ,tax relating to current stock of greenhouse gas emissions 7a7 ,in general ,chapter #ch of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subchapter3 ,e ,certain fossil fuel emissions ,sec4 #dfia4 ,imposition of tax4 #dfia4 ,imposition of tax 7a7 ,imposition ,each assessable person shall pay to the ,secretary of the ,treasury not later than the applicable payment date a tax in an amount determined under subsection 7b74 7b7 ,determination of amount 7#a7 ,in general ,with respect to each assessable person1 the tax under this section shall be equal to an amount that bears the same ratio to #a1jjj1jjj1jjj1jjj as-- 7,a7 the assessable person's applicable share of covered carbon dioxide emissions taken into account under this section1 bears to 7,b7 the aggregate applicable shares of covered carbon dioxide emissions of all assessable persons taken into account under this section4 7#b7 ,determination of applicable share 7,a7 ,in general ,the applicable share of covered carbon dioxide emissions taken into account under this section for any assessable person shall be the excess 7if any7 of-- 7i7 the covered carbon dioxide emissions attributable to such person 7determined in metric tons71 as determined by the ,secretary based on product-related carbon dioxide emissions of such person1 over 7ii7 #a1jjj1jjj1jjj metric tons4 7,b7 ,adjustment ,the ,secretary may adjust the amount determined under subparagraph 7,a77i7 with respect to an assessable person who is described in subsection 7c77#b77;,b77ii7 7or who is a successor in interest to a person described in such subsection7 if such person establishes to the satisfaction of the ,secretary that a portion of such amount was-- 7i7 attributable to the extraction of crude oil by another assessable person who is described in subsection 7c77#b77;,b77i7 7or a successor in interest to a person described in such subsection71 and 7ii7 taken into account in determining such amount for such other assessable person4 7c7 ,assessable person ,for purposes of this section-- 7#a7 ,in general ,the term assessable person means-- 7,a7 any person that is described in paragraph 7#b71 or 7,b7 any successor in interest to a person described in paragraph 7#b74 7#b7 ,person described ,a person is described in this paragraph if such person-- 7,a7 is a ,united ,states person or is engaged in a trade or business within the ,united ,states during the period beginning on the date of the enactment of this ,act and ending on ,december #ca1 #bjbe1 7,b7 during any part of the covered period1 was engaged in the trade or business of-- 7i7 extracting any fossil fuel1 or 7ii7 refining any crude oil1 and 7,c7 is determined by the ,secretary to be responsible for more than #a1jjj1jjj1jjj metric tons of covered carbon dioxide emissions4 7#c7 ,controlled groups 7,a7 ,in general ,for purposes of this subsection1 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 assessable person4 7,b7 ,inclusion of foreign corporations ,for purposes of subparagraph 7,a71 in applying subsections 7a7 and 7b7 of section #eb to this section1 section #aefc shall be applied without regard to subsection 7b77#b77;,c7 thereof4 7#d7 ,joint and several liability ,if more than one person is liable for payment of the tax under subsection 7a7 with respect to a single assessable person by reason of the application of paragraph 7#c71 all such persons shall be jointly and severally liable for payment of such tax4 7d7 ,other definitions and rules ,for purposes of this section-- 7#a7 ,applicable payment date ,the term applicable payment date means ,september #cj1 #bjbf4 7#b7 ,covered carbon dioxide emissions ,the term covered carbon dioxide emissions means1 with respect to any person1 the total quantity of carbon dioxide released into the atmosphere during the covered period by reason such person engaging in the trade or business of extracting fossil fuels or of refining crude oil4 7#c7 ,covered period ,the term covered period means the period that-- 7,a7 began on ,january #a1 #bjjj1 and 7,b7 ended on ,december #ca1 #bjbc4 7#d7 ,fossil fuel ,the term fossil fuel means coal1 crude oil1 and fuel gases4 7#e7 ,coal ,the term coal means anthracite1 bituminous1 subbituminous1 and lignite coal4 7#f7 ,crude oil ,the term crude oil means oil or petroleum of any kind and in any form1 including bitumen1 oil sands1 heavy oil1 conventional and unconventional oil1 shale oil1 natural gas liquids1 condensates1 and related fossil fuel liquids4 7#g7 ,fuel gases ,the term fuel gases means natural gas1 associated natural gas1 conventional and unconventional gas1 shale gas1 and related methane gas production4 7#h7 ,determination of carbon dioxide emissions ,in determining the amount of carbon dioxide emissions with respect to any assessable person-- 7,a7 an amount equivalent to #idb4e metric tons of carbon dioxide shall be treated as released for every #a1jjj1jjj pounds of coal1 7,b7 an amount equivalent to #dcb1ahj metric tons of carbon dioxide shall be treated as released for every #a1jjj1jjj barrels of crude oil1 and 7,c7 an amount equivalent to #ed1ddj metric tons of carbon dioxide shall be treated as released for every #a1jjj1jjj1jjj cubic feet of fuel gases4 7e7 ,election ,to pay liability in installments 7#a7 ,in general ,an assessable person may elect to pay the tax under this section in #i annual installments of the following amounts3 7,a7 #bj percent of the tax under this section in the case of the first installment4 7,b7 #aj percent of the tax under this section in each of the following #h installments4 7#b7 ,date for payment of installments ,if an election is made under paragraph 7#a71 the first installment shall be paid on the applicable payment date and each succeeding installment shall be paid on the same date as the applicable payment date for each calendar year following the calendar year with respect to which the preceding installment was made4 7#c7 ,acceleration of payment ,if there is an addition to tax for failure to timely pay any installment required under this subsection1 a liquidation or sale of substantially all the assets of the assessable person 7including in a title #aa or similar case71 a cessation of business by the assessable person1 or any similar circumstance1 then the unpaid portion of all remaining installments shall be due on the date of such event 7or in the case of a title #aa or similar case1 the day before the petition is filed74 ,the preceding sentence shall not apply to the sale of substantially all the assets of an assessable person to a buyer if such buyer enters into an agreement with the ,secretary under which such buyer is liable for the remaining installments due under this subsection in the same manner as if such buyer were the assessable person4 7#d7 ,proration of deficiency to installments ,if an election is made under paragraph 7#a7 to pay the tax under this section in installments and a deficiency has been assessed with respect to such tax1 the deficiency shall be prorated to the installments payable under paragraph 7#a74 ,the part of the deficiency so prorated to any installment the date for payment of which has not arrived shall be collected at the same time as1 and as a part of1 such installment4 ,the part of the deficiency so prorated to any installment the date for payment of which has arrived shall be paid upon notice and demand from the ,secretary4 ,this subsection shall not apply if the deficiency is due to negligence1 to intentional disregard of rules and regulations1 or to fraud with intent to evade tax4 7#e7 ,election ,any election under paragraph 7#a7 shall be made not later than the applicable payment date and shall be made in such manner as the ,secretary shall provide4 7#f7 ,installments not to prevent credit or refund of overpayments or increase estimated taxes ,if an election is made under paragraph 7#a7 to pay the tax under this section in installments-- 7,a7 no installment of such tax shall-- 7i7 in the case of a request for credit or refund1 be taken into account as a liability for purposes of determining whether an overpayment exists for purposes of section #fdjb before the date on which such installment is due1 or 7ii7 for purposes of sections #fdbe1 #ffed1 and #ffee1 be treated as a tax imposed by section #a1 section #aa1 or subchapter ,l of chapter #a1 and 7,b7 the first sentence of section #fdjc shall not apply with respect to any such installment4 7f7 ,regulations ,not later than #ah months after the date of enactment of this section1 the ,secretary shall promulgate such regulations as are necessary to carry out this section4 4 7b7 ,no deduction ,section #bge7;a7 of such ,code is amended by adding at the end the following new paragraph3 7#g7 ,taxes imposed by subchapter ,e of chapter #ch4 4 7c7 ,clerical amendment ,the table of subchapters for chapter #ch of such ,code is amended by adding at the end the following new item3 ,,subchapter ,e--,certain fossil fuel emissions 4 #d4 ,polluter ,pays ,climate ,change ,fund 7a7 ,establishment of fund 7#a7 ,in general ,subchapter ,a of chapter #ih of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #ieab4 ,polluters ,pay ,climate ,fund 7a7 ,establishment ,there is established in the ,treasury of the ,united ,states a trust fund1 to be known as the ,polluters ,pay ,climate ,fund 7hereinafter in this section referred to as the ,fund71 consisting of amounts as are appropriated or credited to such ,trust ,fund as provided in this section and section #ifjb7;b74 7b7 ,transfers ,there are hereby appropriated to the ,fund amounts equivalent to the taxes received in the ,treasury under section #dfia4 7c7 ,expenditures from the ,fund ,amounts in the fund shall be available1 as provided in appropriations ,acts1 for the purpose of making expenditures to carry out the purposes of section #d7;b7 of the ,polluters ,pay ,climate ,fund ,act of #bjbe4 4 7#b7 ,clerical amendment ,the table of sections for subchapter ,a of chapter #ih of such ,code is amended by adding at the end the following new item3 ,sec4 #ieab4 ,polluters ,pay ,climate ,fund4 4 7b7 ,expenditures from fund 7#a7 ,definitions ,in this subsection3 7,a7 ,administrator ,the term ,administrator means the ,administrator of the ,environmental ,protection ,agency4 7,b7 ,environmental justice community ,the term environmental justice community means a community with significant representation of communities of color1 low-income communities1 or ,tribal and ,indigenous communities that experiences1 or is at risk of experiencing1 higher or more adverse human health or environmental effects as compared to other communities4 7,c7 ,fund ,the term ,fund means the ,polluters ,pay ,climate ,change ,fund established under section #ieab of the ,internal ,revenue ,code of #aihf4 7,d7 ,secretary ,the term ,secretary means the ,secretary of the ,treasury4 7#b7 ,use of fund amounts 7,a7 ,general purposes ,the ,secretary1 in consultation with the ,administrator and the heads of other relevant agencies1 shall use amounts in the ,fund for the purposes of furthering a comprehensive and equitable ,federal response to climate change impacts through investments in climate resilience1 adaptation1 disaster response1 and environmental justice1 including-- 7i7 climate-related disaster recovery and mitigation support2 7ii7 climate change adaptation support through climate and disaster planning assistance1 funding for climate-resilient infrastructure1 and improved climate and extreme weather prediction capabilities2 7iii7 initiatives that increase the climate resilience of energy systems through energy efficiency1 grid resilience1 and distributed electricity generation initiatives2 7iv7 initiatives that increase the climate resilience of the food system through support for climate-resilient farming practices2 7v7 initiatives that increase the climate resilience of the transportation system through planning and climate change adaptation support2 7vi7 initiatives that increase the climate resilience of ecosystems through conservation1 restoration1 and wildfire management activities2 7vii7 support for climate-related public health initiatives1 including efforts to address extreme heat2 and 7viii7 initiatives that increase the climate resiliency of drinking water and stormwater infrastructure4 7,b7 ,specified uses ,in carrying out subparagraph 7,a7 each fiscal year and to the greatest extent practicable1 the ,secretary shall use amounts in the ,fund-- 7i7 to provide funding of not less than #ae1jjj1jjj1jjj to the ,federal ,emergency ,management ,agency for response and resilience programs of the ,federal ,emergency ,management ,agency to address climate-related disasters1 including hurricanes1 flooding1 extreme heat1 and wildfires1 of which not less than #c1jjj1jjj1jjj shall be used to carry out the ,building ,resilient ,infrastructure and ,communities program under section #bjc of the ,robert ,t4 ,stafford ,disaster ,relief and ,emergency ,assistance ,act 7#db ,u4,s4,c4 #eacc72 and 7ii7 to provide funding of not less than #f1jjj1jjj1jjj for grants and technical assistance under section #ach of the ,clean ,air ,act 7#db ,u4,s4,c4 #gdch71 subject to the condition that the ,administrator may determine the appropriate amounts to be used for those grants and that technical assistance4 7,c7 ,environmental justice set aside ,of the amounts appropriated from the ,fund each fiscal year1 #dj percent shall be used for investments that benefit environmental justice communities4 7,d7 ,selection ,for the purpose of determining how to award amounts appropriated from the ,fund in excess of the amounts required to be used under subparagraph 7,b71 the ,secretary1 in coordination with the ,administrator and the heads of other relevant agencies1 shall establish selection criteria1 which shall give the highest priority to projects or other activities that are most impactful in achieving the purposes described in subparagraph 7,a71 as determined by the ,secretary1 in coordination with the ,administrator and the heads of other relevant agencies4 #e4 ,availability of remedies 7a7 ,in general ,nothing in this ,act or the amendments made by this ,act shall be construed to relieve any person from liability at common law or under any ,state or ,federal law4 7b7 ,effect on claims related to climate change ,nothing in this ,act or the amendments made by this ,act1 the ,clean ,air ,act 7#db ,u4,s4,c4 #gdja et seq471 or ,federal common law preempts1 displaces1 or restricts any right or remedy of any person1 ,state1 unit of local government1 or ,tribal government under any ,state or local law 7including common law7 relating to an allegation of-- 7#a7 deception concerning the effects of fossil fuel on climate change2 7#b7 damage or injury resulting from the role of fossil fuel in contributing to climate change2 or 7#c7 the failure to avoid damage or injury related to climate change1 including claims for nuisance1 trespass1 design defect1 negligence1 failure to warn1 or deceptive or unfair practices and claims for injunctive1 declaratory1 monetary1 or other relief4 7c7 ,rule of construction ,nothing in this ,act or the amendments made by this ,act shall-- 7#a7 require the repayment of any funds made available from the ,polluter ,pays ,climate ,change ,fund established under section #ieab of the ,internal ,revenue ,code of #aihf and used pursuant to section #d7;b7 as a result of any award of damages imposed by a court of law relating to any causes of action or allegations described in subsection 7b72 or 7#b7 permit the use of any such funds-- 7,a7 as evidence in such an action or allegation2 or 7,b7 to offset any award of damages in such an action or allegation4 #f4 ,non-preemption of authorities ,nothing in this ,act or the amendments made by this ,act shall be construed to preempt or supersede any ,state or local law1 regulation1 policy1 or program1 including laws1 regulations1 polices1 and programs that-- 7#a7 limit1 set1 or enforce standards for greenhouse gas emissions2 7#b7 monitor1 report1 and keep records of greenhouse gas emissions2 7#c7 provide cost recovery for climate adaptation1 mitigation1 or resilience2 or 7#d7 conduct or support investigations4