,,ii  #aai? ,,congress  #a/ ,session    
,s4 #cebc  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,decemb] #ag1 #bjbe    
,mr4 ,:iteh\se 7= himself1 ,mr4         
,blum5?al1 ,mr4 ,he9ri*1 ,mr4 ,s*atz1   
,mr4 ,wel*1 & ,mr4 ,van ,holl57         
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to create a c>bon 
bord] adju/m5t bas$ on c>bon int5sity1 &
 = o!r purposes4  #a4 ,%ort title ,?is  
,act may be cit$ z ! ,clean ,competition
 ,act4  #b4 ,c>bon int5sity *>ge  7a7 ,9
 g5]al ,*apt] #ch ( ! ,int]nal ,rev5ue  
,code ( #aihf is am5d$ by add+ at ! end 
! foll[+ new sub*apt]3  ,e ,c>bon       
int5sity *>ge  ,sec4 #dfia4 ,calculation
 ( c>bon int5sity4 ,sec4 #dfib4         
,imposition ( c>bon int5sity *>ge4 ,sec4
 #dfic4 ,rebate4 ,sec4 #dfid4 ,c>bon    
clubs4 ,sec4 #dfie4 ,def9itions4  #dfia4
 ,calculation ( c>bon int5sity  7a7     
,dome/ic report+ requirem5ts ,n lat] ?an
 ,june #cj1 #bjbf1 & annually !reaft]1  

any cov]$ entity %all1 = ea* eligible   
facility op]at$ by su* entity1 report to
 ! ,secret>y1 ! ,adm9i/rator1 & !       
,secret>y ( ,en]gy ) respect to !       
foll[+3 7#a7 ,any in=mation requir$ to  
be report$ to ! ,adm9i/rator "u !       
,gre5h\se ,gas ,report+ ,program 7z w\ld
 be requir$ to be report$ not)/&+ any   
o!r provision ( law prohibit+ !         
implem5tation ( or use ( funds = su*    
requirem5ts7 = ! prec$+ cal5d> ye>4     
7#b7 ,! total am\nt ( electricity us$ at
 su* facility dur+ ! prec$+ cal5d> ye>1 
includ+-- 7,a7 :e!r su* electricity 0   
provid$ ?r\gh ! electric grid or a      
d$icat$ g5]ation s\rce1  7,b7 ! t]ms (  
any p[] pur*ase agreem5ts ) respect to  
su* facility1 &  7,c7 ) respect to any  
electricity :i* 0 n provid$ ?r\gh !     
electric grid1 ! gre5h\se gas emissions 
associat$ ) ! production ( su*          
electricity1 provid$ t su* emissions are
 n report$ pursuant to p>agraph 7#a74   
7#c7 ,! total relevant quantity ( ea*   
cov]$ prim>y good produc$ at su*        

facility dur+ ! prec$+ cal5d> ye>4  7#d7
 ,any o!r in=mation det]m9$ necess>y by 
! ,secret>y = purposes ( ! adm9i/ration 
( subsection 7b74  7b7 ,calculation     
7#a7 ,c>bon int5sity  7,a7 ,eligible    
facility ,= purposes ( ?is sub*apt]1 =  
ea* cal5d> ye>1 ! c>bon int5sity )      
respect to any eligible facility %all be
 an am\nt equal to ! quoti5t (-- 7i7 !  
cov]$ emissions 7z det]m9$ "u p>agraph  
7#b77 ) respect to su* facility1 divid$ 
by  7ii7 ! total relevant quantity (    
cov]$ prim>y goods produc$ at su*       
facility dur+ ! prec$+ cal5d> ye>4  7,b7
 ,cov]$ national indu/ry  7i7 ,9 g5]al  
,= purposes ( ?is sub*apt]1 ! c>bon     
int5sity ) respect to any cov]$ national
 indu/ry %all be an am\nt 7z det]m9$ by 
! ,secret>y7 equal to ! quoti5t (--     
7,i7 an am\nt equal to ! sum ( ! cov]$  
emissions 7z det]m9$ "u p>agraph 7#b77 )
 respect to all eligible facilities :i* 
produce cov]$ prim>y goods :i* are      
includ$ )9 su* cov]$ national indu/ry = 
! cal5d> ye>1 divid$ by  7,,ii7 ! total 

relevant quantity ( cov]$ prim>y goods  
)9 su* cov]$ national indu/ry :i* are   
produc$ at all su* eligible facilities  
dur+ su* ye>4  7ii7 ,cov]$ prim>y goods 
det]m9ation ,= purposes ( ?is sub*apt]--
 7,i7 a cov]$ prim>y good %all initially
 be includ$ )9 ! cov]$ national indu/ry 
) :i* x is associat$ "u ! mo/ rec5t     
concordance table publi%$ by ! ,bureau (
 ! ,c5sus comp>+ classifications "u !   
,h>moniz$ ,t>iff ,sy/em & ! ,nor?       
,am]ican ,indu/ry ,classification       
,sy/em1 &  7,,ii7 ! ,secret>y 79        
coord9ation ) ! relevant p>ties7 may    
subsequ5tly det]m9e :i* types ( eligible
 facilities or processes )9 facilities  
7& any relat$ cov]$ prim>y goods7 are   
includ$ or exclud$ )9 a cov]$ national  
indu/ry1 provid$ t su* det]m9ation--    
7aa7 facilitates a fair comp>ison (     
c>bon int5sities across simil> eligible 
facilities 7bas$ on a comp>ison ( !     
en]gy-int5sive processes & ! mat]ial    
outputs ( su* facilities71  7bb7 does n 
mean+fully r$uce ! scope ( gre5h\se gas 

emissions cov]$ by ?is sub*apt]1 &  7cc7
 ensures t ea* cov]$ prim>y good is only
 includ$ )9 a s+le cov]$ national       
indu/ry4  7iii7 ,exclud$ facilities ,9 !
 case ( any eligible facility :i*1      
pursuant to clause 7ii71 is exclud$ f a 
cov]$ national indu/ry & is n includ$ 9 
any o!r cov]$ national indu/ry1 su*     
facility %all be deem$ to n be includ$ 9
 any cov]$ national indu/ry4  7,c7      
,petition = specific goods  7i7 ,9 g5]al
 ,9 ! case ( any cov]$ national indu/ry 
:i* produces m ?an #a cov]$ prim>y good1
 a cov]$ entity may file a petition ) ! 
,secret>y to--  7,i7 remove #a or m     
cov]$ prim>y goods f inclusion "u any   
cov]$ national indu/ry1  7,,ii7 e/abli% 
a new cov]$ national indu/ry = purposes 
( ! goods describ$ 9 subclause 7,i71    
7,,iii7 det]m9e ! c>bon int5sity )      
respect to ! cov]$ national indu/ry     
e/abli%$ "u subclause 7,,ii71 &  7,,iv7 
det]m9e a classification = def9+ su*    
cov]$ national indu/ry = purposes ( ?is 
sub*apt]1 su* z--  7aa7 ! applicable    

#f-;digit subhead+ 7or subhead+s7 ( !   
,h>moniz$ ,t>iff ,s*$ule ( ! ,unit$     
,/ates ( ! goods describ$ 9 subclause   
7,i71  7bb7 ! relevant production       
process1  7cc7 a set ( mat]ial          
*>act]i/ics1 or  7dd7 any comb9ation ( !
 me?ods = classification describ$ 9     
items 7aa7 ?r\gh 7cc74  7ii7 ,review ,) 
respect to any cov]$ prim>y good :i* is 
includ$ 9 a petition describ$ 9 clause  
7i71 ! ,secret>y 79 coord9ation ) !     
,adm9i/rator & ! ,secret>y ( ,en]gy7    
%all approve su* petition if-- 7,i7 !   
*emical1 physical1 or me*anical         
production processes = su* good or goods
 are sub/antially diff]5t z comp>$ to   
o!r cov]$ prim>y goods produc$ )9 ! same
 cov]$ national indu/ry1  7,,ii7 !      
prop]ties ( su* good or goods are di/9ct
 su* t its uses _c be easily replac$ by 
o!r cov]$ prim>y goods produc$ )9 ! same
 cov]$ national indu/ry1 &  7,,iii7 !   
c>bon int5sity det]m9$ ) respect to su* 
good or goods is at lea/ #be p]c5t      
great] ?an ! c>bon int5sity det]m9$ =   

o!r cov]$ prim>y goods produc$ )9 ! same
 cov]$ national indu/ry4  7iii7         
,recalculation ,9 ! case ( any petition 
describ$ 9 clause 7i7 :i* is approv$ by 
! ,secret>y pursuant to clause 7ii71 !  
,secret>y 79 coord9ation ) !            
,adm9i/rator7 %all r$et]m9e ! c>bon     
int5sity1 z well z ! basel9e c>bon      
int5sity1 ) respect to ! cov]$ national 
indu/ry or indu/ries :i* previ\sly      
includ$ production ( ! cov]$ prim>y good
 or goods :i* are ! subject ( su*       
petition by exclud+ any cov]$ emissions 
associat$ ) ! production ( su* good or  
goods = purposes ( ! det]m9ation made "u
 subp>agraph 7,b7 = su* indu/ry4  7iv7  
,goods-level data ,9 ! case ( any       
petition describ$ 9 clause 7i7 :i* is   
approv$ by ! ,secret>y pursuant to      
clause 7ii71 ! ,secret>y 79 coord9ation 
) ! ,adm9i/rator7 %all use a me?odology 
= det]m9+ ! c>bon int5sity ( ! cov]$    
prim>y good or subset ( prim>y goods 7z 
det]m9$ us+ ! eligible facility         
in=mation report$ "u subsection 7a771 & 

%all publi% ! me?odology & ! results (  
su* det]m9ation1 9 a mann] :i*--  7,i7  
is compatible ) exi/+ ,f$]al c>bon      
acc\nt+ rules & /&>ds1  7,,ii7 includes 
! relat$ *emical1 physical1 or me*anical
 production processes responsible =     
diff]5ces 9 c>bon int5sity & cov]$      
emissions1 &  7,,iii7 prioritizes ease (
 adm9i/ration & compliance4  7,d7       
,det]m9ation ,any det]m9ation ( c>bon   
int5sity "u ?is p>agraph %all be made by
 ! ,secret>y 9 coord9ation ) !          
,adm9i/rator & ! ,secret>y ( ,en]gy4    
7,e7 ,relevant quantity ,= purposes (   
?is sub*apt]1 ! relevant quantity ( a   
cov]$ prim>y good %all be det]m9$ bas$  
on-- 7i7 ! weight 7express$ 9 metric    
tons7 ( su* good1 or  7ii7 if !         
,secret>y1 9 coord9ation ) !            
,adm9i/rator & ! ,secret>y ( ,en]gy1    
det]m9es t us+ an alt]nate physical unit
 ( measurem5t 7su* z volume at a        
specific pressure or en]gy cont5t7 w\ld 
bett] facilitate a fair comp>ison (     
c>bon int5sities across ! cov]$ prim>y  

goods 9 ! cov]$ national indu/ry1 an    
alt]nate physical unit ( measurem5t4    
7#b7 ,cov]$ emissions  7,a7 ,9 g5]al ,= 
purposes ( ?is subsection1 = ea* cal5d> 
ye>1 ! am\nt ( cov]$ emissions ) respect
 to any eligible facility %all be an    
am\nt 7z det]m9$ by ! ,secret>y1 9      
coord9ation ) ! ,adm9i/rator7 equal to !
 sum (--  7i7 ! total gre5h\se gas      
emissions associat$ ) ! production (    
cov]$ prim>y goods at su* facility dur+ 
! prec$+ cal5d> ye> 7z report$ pursuant 
to subsection 7a771 plus  7ii7 ! total  
gre5h\se gas emissions associat$ ) any  
electricity us$ at su* facility = !     
production ( su* goods dur+ ! prec$+    
cal5d> ye>4  7,b7 ,emissions =          
electricity us$  7i7 ,9 g5]al ,=        
purposes ( subp>agraph 7,a77ii71 ! am\nt
 ( gre5h\se gas emissions associat$ )   
electricity provid$ ?r\gh ! electric    
grid %all be det]m9$ bas$ on ! av]age   
c>bon int5sity = ! regional grid 9 :i* !
 eligible facility is locat$ = ! prec$+ 
cal5d> ye>4  7ii7 ,exception ,9 ! case (

 an eligible facility :i* is subject to 
a p[] pur*ase agreem5t 7or its =eign    
equival5t7 :i* gu>antees t any          
electricity provid$ "u su* agreem5t is  
g5]at$ )9 ! same h\r z x is us$ by su*  
facility & )9 ! same regional           
transmission zone 7or its =eign         
equival5t7 z su* facility--  7,i7 clause
 7i7 %all n apply ) respect to ! am\nt (
 electricity provid$ "u su* agreem5t1 & 
7,,ii7 ! am\nt ( gre5h\se gas emissions 
associat$ ) su* electricity %all be     
det]m9$ bas$ on ! av]age c>bon int5sity 
( ! electricity provid$ "u su* agreem5t4
  7#c7 ,import$ goods  7,a7 ,9 g5]al ,9 
! case ( any cov]$ prim>y good :i* is   
import$ into ! ,unit$ ,/ates1 ! c>bon   
int5sity ) respect to su* good %all be  
det]m9$ z foll[s3 7i7 ,economy-wide     
default ,subject to clauses 7ii71 7iii71
 & 7iv71 ! c>bon int5sity ) respect to !
 cov]$ prim>y good %all be equal to !   
product (--  7,i7 an am\nt equal to !   
quoti5t (-- 7aa7 ! c>bon int5sity ( !   
g5]al economy ( ! c\ntry ( orig9 ( su*  

good1 divid$ by  7bb7 ! c>bon int5sity (
 ! g5]al economy ( ! ,unit$ ,/ates1     
multipli$ by  7,,ii7 ! c>bon int5sity ( 
! cov]$ national indu/ry 9 ! ,unit$     
,/ates = su* good = ! prec$+ cal5d> ye>4
  7ii7 ,indu/ry data ,if ! ,secret>y 79 
coord9ation ) ! relevant p>ties7        
det]m9es t transp>5t1 v]ifiable1 &      
reliable in=mation is available )       
respect to any cov]$ national indu/ry 9 
! c\ntry ( orig9 ( ! cov]$ prim>y good &
 t su* c\ntry ( orig9 is a transp>5t    
m>ket economy1 ! c>bon int5sity )       
respect to ! cov]$ prim>y good %all be  
equal to ! relevant cov]$ national      
indu/ry c>bon int5sity ( ! c\ntry (     
orig9 ( su* good4  7iii7 ,manufactur]   
data ,if a petition "u subp>agraph 7,c7 
has be5 approv$1 ! c>bon int5sity )     
respect to ! cov]$ prim>y good %all be  
equal to ! av]age c>bon int5sity )      
respect to ! production ( su* good by ! 
manufactur] )9 ! c\ntry ( orig94  7iv7  
,e/imates = significant imports ,if !   
,secret>y 79 coord9ation ) ! relevant   

p>ties7 det]m9es t-- 7,i7 7aa7 great]   
?an #aj p]c5t ( ! value ( imports (     
cov]$ prim>y goods 9 a cov]$ national   
indu/ry come f a s+le c\ntry ( orig91 or
  7bb7 :5 appli$ to imports ( cov]$     
prim>y goods 9 a cov]$ national indu/ry 
f a c\ntry ( orig91 ! c>bon int5sity    
det]m9$ "u clause 7i7 fails to ma9ta9 ! 
integrity & efficacy ( ?is sub*apt]1 &  
7,,ii7 7aa7 transp>5t1 v]ifiable1 &     
reliable in=mation is n available to    
det]m9e ! c>bon int5sity ( ! cov]$      
national indu/ry 9 su* c\ntry ( orig91  
or  7bb7 su* c\ntry ( orig9 is n a      
transp>5t m>ket economy1  ! ,secret>y 79
 coord9ation ) ! relevant p>ties7 %all  
e/imate ! c>bon int5sity ( ! cov]$      
national indu/ry 9 ! c\ntry ( orig9 us+ 
be/ available data 7su* z ! production  
processes us$ by ! facilities 9 !       
c\ntry74  7,b7 ,c>bon int5sity ( ! g5]al
 economy ,= purposes ( ?is sub*apt]1 )  
respect to any c\ntry1 ! c>bon int5sity 
( ! g5]al economy ( su* c\ntry %all be  
an am\nt equal to ! quoti5t (--  7i7 !  

gre5h\se gas emissions ( su* c\ntry = ! 
mo/ rec5t ye> = :i* ! ,secret>y det]m9es
 !re is reliable in=mation1 divid$ by   
7ii7 ! gross dome/ic product ( su*      
c\ntry = ! ye> describ$ 9 clause 7i74   
7,c7 ,petition = =eign manufactur] data 
7i7 ,9 g5]al ,9 ! case ( any entity :i* 
imports a cov]$ prim>y good = :i* !     
c>bon int5sity c be det]m9$ "u          
subp>agraph 7,a77ii7 f a c\ntry ( orig9 
:]e !re is no evid5ce ( int]-firm       
res\rce %uffl+1 su* entity may file a   
petition ) ! ,secret>y to det]m9e ! *>ge
 "u section #dfib1 if any1 bas$ on !    
av]age c>bon int5sity ) respect to !    
production ( su* good by ! manufactur]  
)9 ! c\ntry ( orig94  7ii7 ,aggregation 
rule ,= purposes ( ?is subp>agraph1 !   
av]age c>bon int5sity ) respect to !    
production ( a cov]$ prim>y good %all be
 det]m9$ bas$ ^u gre5h\se gas emission &
 production data f all facilities :i*   
produce su* good :i* are "u common      
control ( ! manufactur] ( su* good1     
includ+ any subsidi>y1 p>5t company1 or 

jo9t v5ture ( su* manufactur] )9 !      
c\ntry ( orig94  7iii7 ,data provision  
,9 ! case ( an entity :i* files a       
petition describ$ 9 clause 7i71 su*     
entity %all provide ! ,secret>y ) an    
environm5tal product decl>ation         
conta9+-- 7,i7 any in=mation :i* w\ld   
o!rwise be requir$ to be report$ "u     
subsection 7a7 if ! facilities :i*      
produc$ ! cov]$ prim>y good to :i* !    
petition applies 7 subject to ! report+ 
requirem5ts "u ! ,gre5h\se ,gas ,report+
 ,program1 &  7,,ii7 any o!r in=mation  
:i* is necess>y 7z det]m9$ by !         
,secret>y1 9 coord9ation ) ! relevant   
p>ties7 to calculate ! c>bon int5sity ( 
! cov]$ prim>y good 9 accordance ) any  
relevant me?odologies = allocat+ ! c>bon
 int5sity ( ! cov]$ prim>y good "u      
p>agraph 7#a77;,c77iv74  7iv7 ,data     
/&>ds ,! ,secret>y %all only grant su* a
 petition if ! in=mation provid$        
pursuant to clause 7iii7 meets !        
quality1 v]ification1 & complet5ess     
requirem5ts ( ! equival5t ,f$]al c>bon  

acc\nt+ rules & /&>ds t w\ld apply if ! 
cov]$ prim>y good 7 produc$ dome/ically4
  7,d7 ,inputs ,) respect to any cov]$  
prim>y good :i* is import$ into ! ,unit$
 ,/ates & = :i* o!r cov]$ prim>y goods  
7o!r ?an petroleum1 natural gas1 coal1  
or any wa/e or scrap product7 f o!r     
cov]$ national indu/ries 7 us$ z inputs 
9 ! production ( ! import$ cov]$ prim>y 
good1 ! quantity ( su* inputs us$ 9 !   
production ( ! import$ cov]$ prim>y good
 %all be treat$ z sep>ate cov]$ prim>y  
goods t1 )\t d\ble-c\nt+ emissions1 %all
 be consid]$ to be import$ = purposes ( 
?is sub*apt]4  7,e7 ,exclusion  7i7 ,9  
g5]al ,subject to clause 7ii71 9 ! case 
( any cov]$ prim>y good 7includ+ any    
cov]$ prim>y good :i* is an input ( a   
f9i%$ good7 :i* is import$ into ! ,unit$
 ,/ates & 0 produc$ 9 a relatively lea/ 
develop$ c\ntry 7z describ$ 9 section   
#abd ( ! ,=eign ,assi/ance ,act ( #aifa 
7#bb ,u4,s4,c4 #baeav771 ?is p>agraph   
%all n apply4  7ii7 ,exception ,clause  
7i7 %all n apply if ! c\ntry describ$ 9 

su* clause produces at lea/ #c p]c5t (  
total global exports by value ( ! cov]$ 
prim>y good4  7,f7 ,int]-firm res\rce   
%uffl+ ,= purposes ( ?is p>agraph1 ! t]m
 int]-firm res\rce %uffl+ means any     
buy+1 sell+1 trad+1 ex*ang+1 or o!r     
transf] ( control ( production          
facilities betwe5 entities bas$ on !    
c>bon int5sity ( su* facilities = !     
purpose ( creat+ entities ) relatively  
l[] c>bon int5sity & entities )         
relatively high] c>bon int5sity4  7,g7  
,trad+ p>tn]s ,= c\ntries ) :i* ! ,unit$
 ,/ates has agreem5ts t facilitate      
trade1 commit ! p>ties to refra9 f      
impos+ new trade b>ri]s1 & e/abli% high 
/&>ds = labor & environm5tal protection 
& human rights1 ! ,secret>y 7work+ ) !  
relevant p>ties7 %all make be/ ef=ts to 
"w ) ! gov]nm5t ( su* c\ntry to improve 
data %>+1 accuracy1 & transp>5cy su* t  
imports ( cov]$ prim>y goods f su*      
c\ntry h _! c>bon int5sity det]m9$ "u   
subp>agraph 7,a77ii74  7c7 ,publication 
,! ,secret>y 79 coord9ation ) ! relevant

 p>ties7 %all--  7#a7 annually publi%   
any c>bon int5sity :i* has be5 det]m9$  
"u subsection 7b7 ) respect to any      
eligible facility1 cov]$ national       
indu/ry1 cov]$ prim>y good1 =eign       
manufactur]1 or c\ntry ( orig9 7includ+ 
! physical unit ( measurem5t :i* s]ves z
 ! relevant quantity ) respect to any   
cov]$ prim>y good71  7#b7 publi% 7&     
update1 z appropriate7 a li/ ( ea* cov]$
 prim>y good1 z categoriz$ by ! cov]$   
national indu/ry 9 :i* su* good is      
includ$1 &  7#c7 publi% 7& update1 z    
appropriate7 a li/ ( ea* good t         
qualifies z a f9i%$ good1 z det]m9$ by !
 ,secret>y pursuant to section #dfie7i74
  #dfib4 ,imposition ( c>bon int5sity   
*>ge  7a7 ,9 g5]al  7#a7 ,importation ( 
goods  7,a7 ,9 g5]al  7i7 ,cov]$ prim>y 
goods ,subject to section #dfid1 9 !    
case ( any cov]$ prim>y good import$    
into ! ,unit$ ,/ates dur+ any cal5d> ye>
 beg9n+ aft] ,decemb] #ca1 #bjbe1 !re is
 h]eby impos$ a *>ge 9 an am\nt 7r\nd$  
to ! ne>e/ doll>7 equal to ! product (--

  7,i7 ! am\nt 7if any7 by :i* ! c>bon  
int5sity det]m9$ "u section             
#dfia7;b77#c7 ) respect to su* good     
exce$s an am\nt equal to ! applicable   
p]c5tage ( ! basel9e c>bon int5sity ( ! 
cov]$ national indu/ry :i* includes su* 
good1 multipli$ by  7,,ii7 ! total      
relevant quantity ( ! good import$ into 
! ,unit$ ,/ates1 multipli$ by  7,,iii7 !
 co/ ( pollution 7z det]m9$ "u          
subsection 7c774  7ii7 ,f9i%$ goods     
7,i7 ,9 g5]al ,subject to section #dfid1
 9 ! case ( any f9i%$ good :i* is       
import$ into ! ,unit$ ,/ates dur+ any   
cal5d> ye> beg9n+ aft] ,decemb] #ca1    
#bjbg1 !re is h]eby impos$ a *>ge 9 an  
am\nt equal to ! sum ( ! am\nts det]m9$ 
"u subclause 7,,ii7 ) respect to ea*    
cov]$ prim>y good :i* is an input ( su* 
f9i%$ good4  7,,ii7 ,compon5ts ,! am\nt 
det]m9$ "u ?is subclause ) respect to   
any cov]$ prim>y good :i* is an input ( 
a f9i%$ good is an am\nt equal to !     
product (-- 7aa7 ! am\nt 7if any7       
det]m9$ "u clause 7i77,i7 if su* clause 

7 appli$ ) respect to su* good1         
multipli$ by  7bb7 ! total relevant     
quantity ( ! cov]$ prim>y good1         
multipli$ by  7cc7 ! co/ ( pollution 7z 
det]m9$ "u subsection 7c774  7,b7 ,*>ge 
due ,! *>ge impos$ "u ?is p>agraph )    
respect to any goods import$ dur+ any   
cal5d> ye> %all be paid by ! entity :i* 
import$ su* goods n lat] ?an ,septemb]  
#cj ( ! cal5d> ye> subsequ5t to su* ye>4
  7,c7 ,exclusion  7i7 ,9 g5]al ,subject
 to clause 7ii71 9 ! case ( any cov]$   
prim>y good 7includ+ any cov]$ prim>y   
good :i* is an input ( a f9i%$ good7 :i*
 is import$ into ! ,unit$ ,/ates & 0    
produc$ 9 a relatively lea/ develop$    
c\ntry 7z describ$ 9 section #abd ( !   
,=eign ,assi/ance ,act ( #aifa 7#bb     
,u4,s4,c4 #baeav771 ?is p>agraph %all n 
apply4  7ii7 ,exception ,clause 7i7 %all
 n apply if ! c\ntry describ$ 9 su*     
clause produces at lea/ #c p]c5t ( total
 global exports by value ( ! cov]$      
prim>y good4  7,d7 ,=eign c>bon prices  
,if ! ,secret>y 79 coord9ation ) !      

relevant p>ties7 det]m9es t a =eign     
c\ntry has implem5t$ policies :i* impose
 explicit & v]ifiable fees1 co/s1 or    
p5alties on ! emission ( gre5h\se gases 
:i*--  7i7 are economically simil> to ! 
*>ges impos$ pursuant to ! provisions ( 
?is sub*apt]1 &  7ii7 h n be5 rebat$ by 
su* =eign c\ntry1  ! *>ge 7or a portion 
( ! *>ge :i* is equival5t to ! fees or  
co/s impos$ by ! =eign c\ntry7 :i* w\ld 
o!rwise be impos$ "u ?is section )      
respect to cov]$ prim>y goods produc$ 9 
su* =eign c\ntry may be waiv$4  7#b7    
,dome/ic production ( cov]$ prim>y goods
  7,a7 ,9 g5]al ,9 ! case ( any eligible
 facility1 = ea* cal5d> ye> beg9n+ aft] 
,decemb] #ca1 #bjbe1 !re is h]eby impos$
 a *>ge 9 an am\nt 7r\nd$ to ! ne>e/    
doll>7 equal to ! product (-- 7i7 !     
am\nt 7if any7 by :i* ! c>bon int5sity (
 su* facility 7z det]m9$ "u section     
#dfia7;b77#a77;,a77 exce$s an am\nt     
equal to ! applicable p]c5tage ( !      
basel9e c>bon int5sity = ! cov]$        
national indu/ry 7z det]m9$ "u section  

#dfia7;b77 :i* includes any cov]$ prim>y
 good produc$ by su* facility1 multipli$
 by  7ii7 ! total relevant quantity (   
any cov]$ prim>y goods produc$ by su*   
facility dur+ su* cal5d> ye>1 multipli$ 
by  7iii7 ! co/ ( pollution 7z det]m9$  
"u subsection 7c774  7,b7 ,*>ge due ,!  
*>ge impos$ "u ?is p>agraph ) respect to
 any cal5d> ye> %all be paid by ! cov]$ 
entity n lat] ?an ,septemb] #cj ( !     
cal5d> ye> subsequ5t to su* ye>4  7b7   
,applicable p]c5tage ,= purposes (      
p>agraphs 7#a77;,a7 & 7#b77;,a7 (       
subsection 7a71 ! applicable p]c5tage   
%all be--  7#a7 = cal5d> ye> #bjbf1 #ajj
 p]c5t1  7#b7 = cal5d> ye>s #bjbg ?r\gh 
#bjcj1 ! applicable p]c5tage = ! prec$+ 
cal5d> ye>1 r$uc$ by #b4e p]c5tage      
po9ts1  7#c7 = cal5d> ye>s #bjca ?r\gh  
#bjdg1 ! applicable p]c5tage = ! prec$+ 
cal5d> ye>1 r$uc$ by #e p]c5tage po9ts1 
&  7#d7 = any cal5d>s ye>s subsequ5t to 
cal5d> ye> #bjdg1 #j p]c5t4  7c7 ,co/ ( 
pollution  7#a7 ,9 g5]al ,= purposes (  
p>agraphs 7#a77;,a7 & 7#b77;,a7 (       

subsection 7a71 ! co/ ( pollution %all  
be-- 7,a7 = cal5d> ye> #bjbf1 #fj1 &    
7,b7 = ea* cal5d> ye> subsequ5t to !    
cal5d> ye> describ$ 9 subp>agraph 7,a71 
an am\nt equal to ! sum (-- 7i7 ! co/ ( 
pollution = ! prec$+ ye>1 plus  7ii7 an 
am\nt equal to-- 7,i7 ! am\nt describ$ 9
 clause 7i71 multipli$ by  7,,ii7 !     
p]c5tage by :i* ! ,,cpi = ! prec$+      
cal5d> ye> exce$s ! ,,cpi = ! second    
prec$+ cal5d> ye>1 increas$ by #f       
p]c5tage po9ts4  7#b7 ,,cpi ,rules      
simil> to ! rules ( p>agraphs 7#d7 &    
7#e7 ( section #a7;f7 %all apply =      
purposes ( ?is subsection4  7#c7 ,r\nd+ 
,any applicable am\nt det]m9$ "u ?is    
subsection :i* is n a multiple ( #a %all
 be r\nd$ to ! ne>e/ doll>4  7d7 ,c>bon 
removal  7#a7 ,9 g5]al ,) respect to !  
am\nt ( any *>ges impos$ "u subsection  
7a7 dur+ a cal5d> ye>1 su* am\nt %all be
 r$uc$ by an am\nt 7r\nd$ to ! ne>e/    
doll>7 equal to ! product (--  7,a7 !   
total am\nt 7z measur$ 9 metric tons7 ( 
gre5h\se gas emissions :i* are captur$  

directly f ! ambi5t air dur+ su* cal5d> 
ye> pursuant to ! requirem5ts "u        
p>agraphs 7#b7 & 7#c71 &  7,b7 ! co/ (  
pollution 7z det]m9$ "u subsection 7c774
  7#b7 ,removal requirem5ts ,!          
requirem5ts describ$ "u ?is p>agraph )  
respect to captur$ gre5h\se gas         
emissions are t su* emissions are       
captur$ dur+ ! prec$+ cal5d> ye> &--    
7,a7 dispos$ ( 9 secure geological      
/orage 79 compliance ) ! regulations    
e/abli%$ "u section #de,q7f77#b771 or   
7,b7 utiliz$ 9 a mann] 7o!r ?an =       
enhanc$ oil or gas recov]y & 9          
compliance ) ! regulations e/abli%$ "u  
section #de,q7f77#e77 :]eby su*         
emissions are n combu/$ or o!rwise      
emitt$ into ! atmosph]e4  7#c7 ,direct  
air capture ,= purposes ( ?is           
subsection1 ) respect to any gre5h\se   
gas emissions :i* are captur$ directly f
 ! ambi5t air1 ! op]ator ( ! facility   
:i* captur$ su* emissions may--  7,a7   
apportion su* emissions removal among/  
any eligible facilities :i* are "u      

common control ( su* op]ator1 or  7,b7  
ent] into b9d+ & exclusive agreem5ts    
7:i* meet su* requirem5ts z det]m9$     
necess>y by ! ,secret>y to ensure fair &
 accurate emissions acc\nt+7 )--  7i7   
any op]ator ( an eligible facility1 = ! 
purpose ( p]mitt+ su* op]ator to r$uce !
 *>ge impos$ "u subsection 7a7 ) respect
 to any eligible facilities :i* are "u  
common control ( su* op]ator1 or  7ii7  
any import] ( cov]$ prim>y goods1 = !   
purpose ( p]mitt+ su* op]ator to r$uce !
 *>ge impos$ "u subsection 7a7 ) respect
 to any ( _! import$ cov]$ prim>y goods4
  7#d7 ,limitation ,= purposes ( ?is    
subsection1 9 ! case ( any cov]$ prim>y 
good import$ or produc$ at an eligible  
facility1 ! am\nt ( any r$uction ( !    
*>ge impos$ "u subsection 7a7 ) respect 
to su* cov]$ prim>y good or production (
 su* good %all n exce$ ! less] (-- 7,a7 
! am\nt ( ! *>ge impos$ "u su*          
subsection1 or  7,b7 an am\nt equal to !
 product (-- 7i7 ! fir/ qu>tile 9 t]ms (
 c>bon int5sity ) respect to facilities 

op]at+ 9 ! ,unit$ ,/ates :i* produce    
cov]$ prim>y goods :i* are includ$ )9 ! 
same cov]$ national indu/ry1 z det]m9$  
by ! ,secret>y 79 coord9ation ) !       
relevant p>ties71 multipli$ by  7ii7 !  
relevant quantity ( su* cov]$ prim>y    
good1 multipli$ by  7iii7 ! co/ (       
pollution 7z det]m9$ "u subsection 7c774
  7#e7 ,ensur+ integrity ,! ,secret>y1 9
 coord9ation ) ! ,adm9i/rator & !       
,secret>y ( ,en]gy1 %all issue su*      
regulations z may be necess>y to prev5t 
d\ble-c\nt+ & to ensure ! additionality 
& p]man5ce ( captur$ emissions4  7e7    
,regulations & trade actions ,!         
,secret>y %all issue su* regulations z  
may be necess>y to c>ry out ?is sub*apt]
 & %all "w closely ) ! relevant p>ties  
to pursue su* trade actions z may be    
necess>y to ma9ta9 ! integrity &        
efficacy ( ?is sub*apt]4  #dfic4 ,rebate
  7a7 ,exportation ( cov]$ prim>y good  
,subject to subsections 7c7 & 7d71 9 !  
case ( a p]son :o exports any cov]$     
prim>y good f ! ,unit$ ,/ates :i* 0     

produc$ 9 an eligible facility = :i* a  
*>ge has be5 impos$ "u section #dfib1 a 
refund %all be all[$ to su* p]son 9 !   
same mann] z if x 7 an ov]paym5t ( !    
*>ge impos$ by su* section 9 an am\nt   
equal to ! *>ge t w\ld be impos$ "u     
subsection 7a77#a77;,a77i7 ( su* section
 ) respect to su* good4  7b7            
,exportation ( f9i%$ good ,subject to   
subsection 7c71 9 ! case ( a p]son :o   
exports any f9i%$ good f ! ,unit$ ,/ates
 = :i* a *>ge has be5 impos$ "u section 
#dfib on su* f9i%$ good or any ( its    
compon5ts1 a refund %all be all[$ to su*
 p]son 9 ! same mann] z if x 7 an       
ov]paym5t ( ! *>ge impos$ by su* section
 9 an am\nt equal to ! *>ge t w\ld      
o!rwise be impos$ "u su* section )      
respect to su* f9i%$ good 7z det]m9$    
pursuant to subsection 7a77#a77;,a77ii7 
( su* section74  7c7 ,exception = c]ta9 
=eign policies ,9 ! case ( any exports f
 ! ,unit$ ,/ates = :i* a *>ge has be5   
impos$ "u section #dfib1 if-- 7#a7 !    
cov]$ prim>y good or f9i%$ good is      

import$ by a c\ntry ) policies t impose 
t>iffs1 fees1 or p5alties on ! emission 
( gre5h\se gases associat$ ) imports1 & 
7#b7 ! c\ntry describ$ 9 p>agraph 7#a7  
w\ld cr$it ! *>ge impos$ "u section     
#dfib aga9/ su* t>iffs1 fees1 or        
p5alties1  any portion ( a rebate       
o!rwise all[able "u ?is section %all n  
be all[$ to ! ext5t t x w\ld r$uce !    
am\nt cr$it$ by su* c\ntry aga9/ su*    
t>iffs1 fees1 or p5alties4  7d7 ,prev5t+
 dome/ic res\rce %uffl+ ,= purposes (   
det]m9+ ! am\nt ( any refund pursuant to
 subsection 7a71 ! c>bon int5sity )     
respect to ! eligible facility %all be  
det]m9$ by apply+ section               
#dfia7;b77#a77;,a7 by sub/itut+ all     
eligible facilities by ! cov]$ entity   
:i* produc$ ! cov]$ prim>y good describ$
 9 section #dfic7;a77#a7 = su* facility 
ea* place x appe>s 9 su* section4       
#dfid4 ,c>bon clubs  7a7 ,9 g5]al ,to   
accel]ate ! pace ( global dec>bonization
 & exp& m>kets = goods ) l[] c>bon      
int5sities1 ! ,presid5t may1 9          

coord9ation ) ! ,secret>y & ! relevant  
p>ties-- 7#a7 ent] into negotiations )  
#a or m =eign c\ntries to e/abli% or    
exp& a c>bon club agreem5t "u ?is       
section1  7#b7 p]=m any en=cem5t        
activities necess>y to uphold !         
requirem5ts "u su* agreem5t1 &  7#c7    
remove any =eign c\ntry f a c>bon club  
agreem5t if su* c\ntry is det]m9$ to h  
fail$ to comply ) ! requirem5ts describ$
 9 subsection 7b7 or any additional     
requirem5ts e/abli%$ "u su* agreem5t4   
7b7 ,requirem5ts ,any =eign c\ntry :i*  
has ent]$ into a c>bon club agreem5t "u 
?is section %all be subject to ! foll[+ 
requirem5ts3 7#a7 ,ensure its           
me?odologies = ! measurem5t1 report+1 & 
v]ification ( ! c>bon int5sity ( cov]$  
national indu/ries mat*1 or are         
int]op]able )1 ^? us$ to det]m9e ! c>bon
 int5sity ( cov]$ national indu/ries 9 !
 ,unit$ ,/ates4  7#b7 ,p]mit any o!r    
c\ntry :i* is a p>ty to su* agreem5t to 
regul>ly validate ! measurem5t1 report+1
 & v]ification ( ! c>bon int5sity ( _!  

cov]$ national indu/ries4  7#c7 ,ensure1
 9 law & 9 practice1 t all work]s 9 !   
t]ritory ( ! c\ntry are gu>ante$ !      
foll[+ int]nationally recogniz$ rights &
 fre$oms1 includ+ ^? gu>ante$ 9 !       
,decl>ation on ,fundam5tal ,pr9ciples & 
,rights at ,"w ( ! ,int]national ,lab\r 
,organization & its ,foll[-up3  7,a7    
,fre$om ( association & ! effective     
recognition ( ! "r to collective b>ga9+4
  7,b7 ,elim9ation ( all =ms ( =c$ or   
compulsory labor4  7,c7 ,effective      
abolition ( *ild labor1 a prohibition on
 ! wor/ =ms ( *ild labor1 & o!r labor   
protections = *ildr5 & m9ors4  7,d7     
,elim9ation ( discrim9ation 9 respect ( 
employm5t & occupation4  7,e7           
,acceptable conditions ( "w ) respect to
 m9imum wages1 h\rs ( "w1 & occupational
 safety & heal?4  7#d7 ,create or       
ma9ta91 z well z implem5t & v]ifiably   
en=ce--  7,a7 dome/ic policies 7includ+ 
any inve/m5ts made possible by assi/ance
 provid$ "u section #b7;d7 ( ! ,clean   
,competition ,act7 :i* r$uce ! c>bon    

int5sity ( its cov]$ national indu/ries 
9 a magnitude great] ?an t :i* w\ld     
feasibly be induc$ z a result (-- 7i7 ! 
*>ges impos$ "u section #dfib7;a77#a71  
or  7ii7 simil> fees on ! emissions (   
gre5h\se gasses associat$ ) ! production
 ( imports levi$ by o!r c\ntries :i* are
 p>ties to su* agreem5t1  7,b7 trade    
policies1 su* z ! *>ge impos$ "u section
 #dfib7;a77#a71 :i* give pref]5ce to    
goods ) l[] c>bon int5sities1  7,c7     
dome/ic policies :i* r$uce pollutants   
o!r ?an gre5h\se gases1 &  7,d7 policies
 t prev5t su* c\ntry f facilitat+       
trans%ipm5t f o!r c\ntries4  7c7        
,prioritization ,9 negotiations )       
respect to any c>bon club agreem5t "u   
?is section1 ! ,presid5t %all seek to   
rea* an agreem5t ) =eign c\ntries :i*   
prioritizes ! foll[+ goals 9 ! foll[+   
ord] ( importance3 7#a7 ,r$uction (     
global gre5h\se gas emissions4  7#b7    
,secur+ access = ! ,unit$ ,/ates to     
mat]ials & inputs necess>y to           
manufacture products ) l[] c>bon        

int5sity1 p>ticul>ly ^? t are n feasibly
 produc$ dome/ically4  7#c7 ,/r5g!n+ !  
global m>ket competitiv5ess ( l[] c>bon 
int5sity goods4  7#d7 ,advanc+ !        
national security & diplomatic int]e/s (
 ! ,unit$ ,/ates4  7d7 ,b5efits ,)      
respect to any c\ntry :i* has ent]$ into
 a c>bon club agreem5t "u ?is section1  
if su* c\ntry--  7#a7 is n contribut+ to
 global indu/rial ov]capacity 7z det]m9$
 by ! ,unit$ ,/ates ,trade              
,repres5tative1 9 coord9ation ) o!r     
relevant p>ties71 ! *>ge :i* w\ld       
o!rwise be impos$ "u section            
#dfib7;a77#a7 ) respect to cov]$ prim>y 
goods produc$ 9 a =eign c\ntry1 z well z
 any simil> fees on ! emissions (       
gre5h\se gasses associat$ ) ! production
 ( imports levi$ by o!r c\ntries :i* are
 p>ties to su* agreem5t1 may be waiv$1  
provid$ t su* c\ntry e/abli%es or       
ma9ta9s policies t r$uce ! emission (   
gre5h\se gases f its cov]$ national     
indu/ries ) comm5surate effect z ! c>bon
 int5sity *>ges impos$ "u section       

#dfib7;a77#b71 &  7#b7 has a l[-income  
economy1 l[]-middle-income economy1 or  
upp]-middle-income economy 7z det]m9$   
bas$ on classification ( ! economy ( su*
 c\ntry by ! ,_w ,bank71 su* c\ntry %all
 receive pref]5ce = assi/ance provid$ "u
 section #b7;d7 ( ! ,clean ,competition 
,act4  7e7 ,phase-,9  7#a7 ,9 g5]al     
,subject to p>agraph 7#b71 = purposes ( 
any c>bon club agreem5t "u ?is section1 
a c\ntry may limit application ( su*    
agreem5t to c]ta9 cov]$ national        
indu/ries1 9 :i* case any requirem5ts or
 b5efits provid$ pursuant to su*        
agreem5t %all be limit$ to su* indu/ries
 & any cov]$ products produc$ by su*    
indu/ries4  7#b7 ,limitation ,n lat] ?an
 #aj ye>s aft] ! date on :i* any c\ntry 
ent]s into a c>bon club agreem5t "u ?is 
section1 all cov]$ national indu/ries ( 
su* c\ntry %all be subject to !         
requirem5ts ( su* agreem5t4  #dfie4     
,def9itions ,= purposes ( ?is sub*apt]--
 7#a7 ,adm9i/rator ,! t]m ,adm9i/rator  
means ! ,adm9i/rator ( ! ,environm5tal  

,protection ,ag5cy4  7#b7 ,basel9e c>bon
 int5sity ,! t]m basel9e c>bon int5sity 
means1 ) respect to a cov]$ national    
indu/ry1 ! c>bon int5sity ( ! cov]$     
national indu/ry 9 ! ,unit$ ,/ates =    
cal5d> ye> #bjbe4  7#c7 ,,co#b-;e  7,a7 
,9 g5]al ,subject to subp>agraph 7,b71 !
 t]m ,,co#b-;e means1 ) respect to a    
gre5h\se gas1 ! quantity ( su* gas t has
 a global w>m+ pot5tial equival5t to #a 
metric ton ( c>bon dioxide1 z det]m9$   
pursuant to table ,a-#a ( subp>t ,a ( "p
 #ih ( title #dj1 ,code ( ,f$]al        
,regulations1 z 9 effect on ! date ( !  
enactm5t ( ?is sub*apt]4  7,b7 ,me?ane  
,9 ! case ( me?ane1 ! t]m ,,co#b-;e     
means ! quantity ( me?ane t has ! same  
global w>m+ pot5tial ov] a #bj-ye> p]iod
 z #a metric ton ( c>bon dioxide1 z     
det]m9$ by ! ,adm9i/rator 9 accordance )
 ! f9d+s ( ! mo/ rec5t ,assessm5t       
,report ( ! ,int]gov]nm5tal ,panel on   
,climate ,*ange z ( ! date ( enactm5t ( 
?is sub*apt]4  7#d7 ,cov]$ entity ,! t]m
 cov]$ entity means any entity :i*--    

7,a7 produces any cov]$ prim>y good1 &  
7,b7 is requir$ to report emissions (   
gre5h\se gases "u ! ,gre5h\se ,gas      
,report+ ,program 7or w\ld be requir$ to
 report su* emissions not)/&+ any o!r   
provision ( law prohibit+ !             
implem5tation ( or use ( funds = su*    
requirem5ts74  7#e7 ,cov]$ national     
indu/ry  7,a7 ,9 g5]al ,except z provid$
 "u section #dfia7;b77#a77;,b77ii71 !   
t]m cov]$ national indu/ry means any    
indu/ry :i* is assign$ a #f-;digit      
,,naics code :i* is includ$ 9 any ( !   
foll[+ clauses3 7i7 #baaabj 7petroleum  
extraction74  7ii7 #baaacj 7natural gas 
extraction74  7iii7 #babaad or #babaae  
7coal m9+74  7iv7 #cbbaaj 7pulp mills74 
7v7 #cbbabj 7pap] mills74  7vi7 #cbbacj 
7pap]bo>d mills74  7vii7 #cbdaaj        
7petroleum ref9]ies74  7viii7 #cbdaba   
7asphalt pav+ mixture & block           
manufactur+74  7ix7 #cbdabb 7asphalt    
%+le & coat+ mat]ials manufactur+74  7x7
 #cbdaii 7all o!r petroleum & coal      
products manufactur+74  7xi7 #cbeaaj    

7petro*emical manufactur+74  7xii7      
#cbeabj 7indu/rial gas manufactur+74    
7xiii7 #cbeaic 7e?yl alcohol            
manufactur+74  7xiv7 #cbeaii 7o!r basic 
organic *emical manufactur+74  7xv7     
#cbecaa 7nitrog5\s f]tiliz]             
manufactur+74  7xvi7 #cbgbaa1 #cbgbab1  
#cbgbac1 or #cbgbae 7glass74  7xvii7    
#cbgcaj 7cem5t74  7xviii7 #cbgdaj or    
#cbgdbj 7lime & gypsum product          
manufactur+74  7xix7 #ccaaaj 7iron &    
/eel74  7xx7 #ccacac or #ccacad         
7alum9um74  7,b7 ,exceptions  7i7       
,indu/rial gas manufactur+ ,subp>agraph 
7,a77xii7 %all apply only ) respect to !
 production ( hydrog54  7ii7 ,o!r basic 
organic *emical manufactur+ ,subp>agraph
 7,a77xiv7 %all apply only ) respect to 
! production ( adipic acid4  7#f7       
,c\ntry ( orig9 ,! t]m c\ntry ( orig9   
means1 ) respect to a cov]$ prim>y good1
 ! c\ntry :]e an en]gy-int5sive or      
emissions-int5sive process occurr$ t    
trans=m$ ! inputs ( ! good into ! cov]$ 
prim>y good4  7#g7 ,cov]$ prim>y good ,!

 t]m cov]$ prim>y good means any good   
:i* is produc$ z "p ( a trade or bus9ess
 op]at+ )9 a cov]$ national indu/ry--   
7,a7 includ+ 7except z o!rwise provid$  
"u subp>agraphs 7,b77ii7 & 7,c7 (       
section #dfia7;b77#a77 any good         
classifiable "u ! same #f-;digit        
subhead+ ( ! ,h>moniz$ ,t>iff ,s*$ule ( 
! ,unit$ ,/ates1 &  7,b7 exclud+ any    
wa/e or scrap byproducts :i* are n sold4
  7#h7 ,eligible facility ,! t]m        
eligible facility means any facility 7z 
su* t]m is def9$ = purposes ( !         
,gre5h\se ,gas ,report+ ,program7 :i*   
is--  7,a7 op]at$ by a cov]$ entity = ! 
production ( any cov]$ prim>y good1 &   
7,b7 locat$ )9 ! ,unit$ ,/ates4  7#i7   
,f9i%$ good  7,a7 ,9 g5]al ,! t]m f9i%$ 
good means any good 7z det]m9$ pursuant 
to a #f-;digit subhead+ ( ! ,h>moniz$   
,t>iff ,s*$ule ( ! ,unit$ ,/ates7 :i* is
 n a cov]$ prim>y good & :i*1 z det]m9$ 
by ! ,secret>y-- 7i7 = cal5d> ye>s #bjbh
 & #bjbi--  7,i7 typically conta9s      
great] ?an #a1jjj p\nds ( any comb9ation

 ( any cov]$ prim>y goods1 or  7,,ii7 is
 typically produc$ f inputs ( any       
comb9ation ( cov]$ prim>y goods1 !      
comb9$ value ( :i* comprise m ?an #ij   
p]c5t ( ! total value ( ! mat]ial inputs
 involv$ 9 ! production ( su* good1     
7ii7 = cal5d> ye>s #bjcj & #bjca-- 7,i7 
typically conta9s great] ?an #ejj p\nds 
( any comb9ation ( any cov]$ prim>y     
goods1 or  7,,ii7 is typically produc$ f
 inputs ( any comb9ation ( cov]$ prim>y 
goods1 ! value ( :i* comprise m ?an #ge 
p]c5t ( ! total value ( ! mat]ial inputs
 involv$ 9 ! production ( su* good1 &   
7iii7 = any cal5d> ye> aft] cal5d> ye>  
#bjca--  7,i7 typically conta9s great]  
?an su* am\nt z is det]m9$ by !         
,secret>y 7z det]m9$ 9 coord9ation ) !  
relevant p>ties1 & :i* %all n be great] 
?an #ejj p\nds7 ( any comb9ation ( any  
cov]$ prim>y goods1 or  7,,ii7 is       
typically produc$ f inputs ( any        
comb9ation ( cov]$ prim>y goods1 ! value
 ( :i* comprise m ?an su* p]c5tage z is 
det]m9$ by ! ,secret>y 7z det]m9$ 9     

coord9ation ) ! relevant p>ties1 & :i*  
%all n be great] ?an #ge p]c5t7 ( !     
total value ( ! mat]ial inputs involv$ 9
 ! production ( su* good4  7,b7         
,exception ,! t]m f9i%$ good %all n     
include any wa/e or scrap product :i* is
 import$ or export$4  7#aj7 ,gre5h\se   
gas ,! t]m gre5h\se gas has ! mean+ giv5
 su* t]m "u section #baa7o77#a77;,g7 ( !
 ,clean ,air ,act1 z 9 effect on ! date 
( ! enactm5t ( ?is sub*apt]4  7#aa7     
,gre5h\se gas emissions ,! t]m gre5h\se 
gas emissions means ! am\nt ( gre5h\se  
gases1 express$ 9 metric tons (         
,,co#b-;e1 :i* 7 emitt$ to ! atmosph]e4 
7#ab7 ,gre5h\se ,gas ,report+ ,program  
,! t]m ,gre5h\se ,gas ,report+ ,program 
means ! ,gre5h\se ,gas ,report+ ,program
 e/abli%$ "u "p #ih ( title #dj1 ,code (
 ,f$]al ,regulations1 z 9 effect on     
,janu>y #a1 #bjbe4  7#ac7 ,m>ket economy
 ,! t]m m>ket economy means any c\ntry  
:i* is n designat$ z a nonm>ket economy 
c\ntry pursuant to section #gga7ah7 ( ! 
,t>iff ,act ( #aicj 7#ai ,u4,s4,c4      

#afgg7ah774  7#ad7 ,,naics ,! t]m       
,,naics means ! ,nor? ,am]ican          
,indu/rial ,classification ,sy/em4      
7#ae7 ,regional grid ,! t]m regional    
grid means ! smalle/ def9$ region (     
int]connect$ p[] grid 7includ+ p[]      
g5]ation assets7 f :i* a facility draws 
p[] t acc\nts = ! total p[] suppli$ to !
 facility by ! grid & = :i* !re is      
reliable data4  7#af7 ,relevant p>ties  
,! t]m relevant p>ties means--  7,a7 !  
,adm9i/rator1  7,b7 ! ,secret>y (       
,en]gy1  7,c7 ! ,secret>y ( ,comm]ce1   
7,d7 ! ,secret>y ( ,homel& ,security1   
7,e7 ! ,unit$ ,/ates ,trade             
,repres5tative1 &  7,f7 ! ,*air & ,vice 
,*air ( ! ,unit$ ,/ates ,int]national   
,trade ,commission4  4  7b7 ,cl]ical    
am5dm5t ,! table ( sub*apt]s = *apt] #ch
 ( ! ,int]nal ,rev5ue ,code ( #aihf is  
am5d$ by add+ at ! end !re( ! foll[+ new
 item3  ,sub*apt] ,e--,c>bon int5sity   
*>ge  4  7c7 ,inve/+ 9 indu/rial        
competitiv5ess  7#a7 ,def9itions ,9 ?is 
subsection3  7,a7 ,adm9i/rator ,! t]m   

,adm9i/rator means ! ,adm9i/rator ( !   
,environm5tal ,protection ,ag5cy4  7,b7 
,advanc$ indu/rial te*nology ,! t]m     
advanc$ indu/rial te*nology means a     
te*nology t--  7i7 is directly involv$ 9
 an indu/rial process describ$ 9        
p>agraphs 7#a7 ?r\gh 7#f7 ( section     
#ded7;c7 ( ! ,en]gy ,indep5d5ce &       
,security ,act ( #bjjg 7#db ,u4,s4,c4   
#agaac7;c772 &  7ii7 is design$ to      
accel]ate gre5h\se gas emissions        
r$uction progress to net-z]o at an      
eligible facility1 z det]m9$ by !       
,secret>y4  7,c7 ,ambition level ,! t]m 
ambition level means ! level ( r$uction 
9 c>bon int5sity describ$ 9 ea* (       
subclauses 7,i7 ?r\gh 7,,iii7 ( p>agraph
 7#c77;,c77iv74  7,d7 ,applicable fair  
m>ket value ,! t]m applicable fair m>ket
 value1 ) respect to an eligible good1  
means ! av]age m>ket doll> value ( #a   
unit ( ! relevant quantity ( t eligible 
good1 z det]m9$ by ! ,secret>y us+      
publicly available m>ket prices & o!r   
m>ket data4  7,e7 ,basel9e c>bon        

int5sity ,! t]m basel9e c>bon int5sity  
has ! mean+ giv5 ! t]m 9 section #dfie (
 ! ,int]nal ,rev5ue ,code ( #aihf 7z    
add$ by subsection 7a774  7,f7 ,b5*m>k  
c>bon int5sity ,! t]m b5*m>k c>bon      
int5sity1 ) respect to a cov]$ prim>y   
good or eligible good1 means ! c>bon    
int5sity ( ! cov]$ national indu/ry 9 ! 
,unit$ ,/ates = t cov]$ prim>y good or  
eligible good = ! prec$+ cal5d> ye>4    
7,g7 ,be/-9-class c>bon int5sity ,! t]m 
be/-9-class c>bon int5sity1 ) respect to
 any propos$ eligible facility1 means t 
! c>bon int5sity ( su* facility w\ld be 
n great] ?an ! c>bon int5sity ( ! exi/+ 
facility ) ! l[e/ c>bon int5sity )9 !   
relevant cov]$ national indu/ry1 z      
det]m9$ z ( ! date ( ! application = a  
grant "u ! program4  7,h7 ,c>bon        
int5sity ,! t]m c>bon int5sity has !    
mean+ giv5 ! t]m "u section             
#dfia7;b77#a7 ( ! ,int]nal ,rev5ue ,code
 ( #aihf 7z add$ by subsection 7a774    
7,i7 ,cov]$ prim>y good ,! t]m cov]$    
prim>y good has ! mean+ giv5 ! t]m 9    

section #dfie ( ! ,int]nal ,rev5ue ,code
 ( #aihf 7z add$ by subsection 7a774    
7,j7 ,cov]$ program ,! t]m cov]$ program
 means ea* ( ! programs e/abli%$ "u     
p>agraphs 7#b77;,a7 & 7#c77;,a74  7,k7  
,cov]$ national indu/ry ,! t]m cov]$    
national indu/ry has ! mean+ giv5 ! t]m 
9 section #dfie ( ! ,int]nal ,rev5ue    
,code ( #aihf 7z add$ by subsection     
7a774  7,l7 ,eligible entity ,! t]m     
eligible entity means any p]son t       
op]ates an eligible facility or w op]ate
 a propos$ eligible facility4  7,m7     
,eligible facility ,! t]m eligible      
facility has ! mean+ giv5 ! t]m 9       
section #dfie ( ! ,int]nal ,rev5ue ,code
 ( #aihf 7z add$ by subsection 7a774    
7,n7 ,eligible good ,! t]m eligible good
 means a cov]$ prim>y good det]m9$      
eligible = a contract = diff]5ce by !   
,secret>y "u p>agraph 7#c77;,b74  7,o7  
,eligible goods class ,! t]m eligible   
goods class means an eligible goods     
class z describ$ 9 p>agraph             
7#c77;,c77iii74  7,p7 ,price discov]y ,!

 t]m price discov]y means a process (   
det]m9+ ! true & accurate price (       
produc+ #a unit ( ! relevant quantity ( 
an eligible good us+ a unique production
 process4  7,q7 ,relevant quantity ,!   
t]m relevant quantity has ! mean+ giv5 !
 t]m "u section #dfia7;b77#a77;,e7 ( !  
,int]nal ,rev5ue ,code ( #aihf 7z add$  
by subsection 7a774  7,r7 ,secret>y ,!  
t]m ,secret>y means ! ,secret>y ( ,en]gy
 7or a designee74  7,s7 ,/rike price ,! 
t]m /rike price means ! doll> value ( #a
 unit ( ! relevant quantity ( an        
eligible good4  7#b7 ,inve/m5ts 9       
advanc$ indu/rial te*nology  7,a7       
,e/abli%m5t ,! ,secret>y %all e/abli% a 
competitive program 7ref]r$ to 9 ?is    
p>agraph z ! program7 to aw>d to        
eligible entities grants1 rebates1 or   
l[-int]e/ loans1 z det]m9$ appropriate  
by ! ,secret>y1 to support inve/m5ts 9  
advanc$ indu/rial te*nology1 includ+ 9  
d$icat$ p[] g5]ation & /orage--  7i7 9 !
 case ( an exi/+ eligible facility1 to  
r$uce ! c>bon int5sity ( ! exi/+        

eligible facility by at lea/ #bj p]c5t2 
7ii7 9 ! case ( a propos$ eligible      
facility1 to ensure at lea/ be/-9-class 
c>bon int5sity ( t propos$ eligible     
facility1 ) a goal ( a*iev+ net-z]o     
c>bon int5sity2 &  7iii7 9 ! case (     
exi/+ & propos$ eligible facilities--   
7,i7 to increase ! te*nological &       
economic competitiv5ess ( cov]$ national
 indu/ries 9 ! ,unit$ ,/ates2  7,,ii7 to
 increase ! viability & competitiv5ess (
 ,unit$ ,/ates indu/rial exports2 &     
7,,iii7 to a*ieve emissions r$uction 9  
cov]$ national indu/ries4  7,b7         
,application process ,! ,secret>y %all  
develop an application process = !      
program simil> to ! application process 
= ! national grant program ( !          
,adm9i/rator "u subtitle ,g ( title     
,,vii ( ! ,en]gy ,policy ,act ( #bjje   
7#db ,u4,s4,c4 #afaca et seq474  7,c7   
,pref]5ce ,9 aw>d+ fund+ "u ! program1 !
 ,secret>y %all give pref]5ce to        
eligible entities--  7i7 = projects t   
w\ld-- 7,i7 result 9 ! greate/ decrease 

9 c>bon int5sity2  7,,ii7 support !     
demon/ration & catalyze ! deploym5t (   
fir/-(-a-k9d te*nologies & processes2   
7,,iii7 provide ! greate/ b5efit = !    
greate/ numb] ( p )9 ! area 9 :i* !     
eligible facility is locat$2  7,,iv7    
advance ,unit$ ,/ates global /rategic   
int]e/s2  7,v7 provide ! greate/        
pot5tial = direct & indirect dome/ic job
 creation2 &  7,,vi7 maximize improvem5t
 9 local air quality2 &  7ii7 =         
facilities locat$ 9--  7,i7 economically
 di/ress$ communities t h exp]i5c$ a    
loss ( manufactur+ jobs2 &  7,,ii7      
communities ) high cumulative pollution 
burd5s1 z det]m9$ by ! ,adm9i/rator4    
7,d7 ,co/ %>e ,! ,secret>y %all require 
an eligible entity to provide n less ?an
 #ej p]c5t ( ! co/ ( a project c>ri$ out
 pursuant to ! program4  7,e7 ,recapture
 ( funds ,! ,secret>y %all recapture1   
pursuant to su* regulations or o!r      
guidance issu$ by ! ,secret>y1 ! fund+  
aw>d$ to an eligible entity if !        
eligible entity fails--  7i7 )9 #c ye>s 

( ! aw>d ( fund+1 to complete ! propos$ 
inve/m5ts or a*ieve an int]im progress  
mile/one agre$ to ) ! ,secret>y2 or     
7ii7 dur+ ! #aj-ye> p]iod aft] ! propos$
 inve/m5ts are plac$ 9 s]vice--  7,i7 9 
! case ( an exi/+ eligible facility1 to 
a*ieve & ma9ta9 ! r$uction 9 c>bon      
int5sity propos$ 9 ! application2 or    
7,,ii7 9 ! case ( a propos$ eligible    
facility1 to a*ieve & ma9ta9 !          
be/-9-class c>bon int5sity propos$ 9 !  
application4  7,f7 ,outrea* ,! ,secret>y
 %all conduct outrea*-- 7i7 to notify ! 
public ab\t ! program2 &  7ii7 to in=m  
eligible entities ( te*nologies t c     
r$uce facility c>bon int5sity or ensure 
be/-9-class c>bon int5sity4  7#c7       
,contracts = diff]5ce  7,a7 ,e/abli%m5t 
,! ,secret>y %all e/abli% a program     
7ref]r$ to 9 ?is p>agraph z ! program7  
to ent] into contracts = diff]5ce       
7ref]r$ to 9 ?is p>agraph z cov]$       
contracts71 on a competitive basis1 )   
eligible entities = paym5t ( co/s       
associat$ ) ! production ( eligible     

goods manufactur$ by ^? eligible        
entities--  7i7 to accel]ate ! deploym5t
 ( comm]cially available advanc$        
indu/rial te*nology2  7ii7 to demon/rate
 & advance ! comm]cialization (         
fir/-(-a-k9d advanc$ indu/rial          
te*nology2  7iii7 to increase !         
te*nological & economic competitiv5ess (
 cov]$ national indu/ries 9 ! ,unit$    
,/ates2  7iv7 to increase ! viability & 
competitiv5ess ( ,unit$ ,/ates advanc$  
indu/rial te*nology exports2 &  7v7 to  
r$uce ! c>bon int5sity ( cov]$ national 
indu/ries 9 ! ,unit$ ,/ates4  7,b7      
,eligible goods  7i7 ,9 g5]al ,!        
,secret>y %all det]m9e :i* cov]$ prim>y 
goods are eligible = cov]$ contracts "u 
! program4  7ii7 ,priority ,9 mak+      
det]m9ations "u clause 7i71 ! ,secret>y 
%all give priority to cov]$ prim>y      
goods-- 7,i7 t contribute a great]      
proportion ( total cov]$ emissions      
relative to o!r cov]$ prim>y goods 9 !  
same cov]$ national indu/ry2  7,,ii7 !  
m>ket conditions = :i* are conducive to 

fair & competitive auctions2  7,,iii7 t 
h transp>5t & accurate price indices2   
7,,iv7 t face l>ge m>g9al co/s (        
dec>bonization t _c feasibly be equaliz$
 by ! c>bon int5sity *>ge levi$ "u      
section #dfib ( ! ,int]nal ,rev5ue ,code
 ( #aihb 7z add$ by subsection 7a772    
7,v7 t provide ! greate/ pot5tial =     
direct & indirect dome/ic job creation2 
7,,vi7 t are feasibly expect$ to cont9ue
 to h robu/ m>ket dem& = ! duration ( ! 
applicable cov]$ contract2 &  7,,vii7 t 
h ! greate/ ability to r$uce haz>d\s    
local air quality if aw>d$ a cov]$      
contract4  7,c7 ,auctions  7i7 ,9 g5]al 
,to aw>d cov]$ contracts "u ! program1 !
 ,secret>y %all hold competitive        
auctions = ea* eligible goods class4    
7ii7 ,application ,to p>ticipate 9 an   
auction "u clause 7i71 an eligible      
entity %all submit to ! ,secret>y an    
application t includes--  7,i7 a        
description ( ! eligible goods cov]$ "u 
! propos$ cov]$ contract2  7,,ii7       
in=mation on any exi/+ or propos$       

facilities t w produce ! eligible goods 
cov]$ "u ! propos$ cov]$ contract1      
includ+ location1 employm5t numb]s1 &   
any plann$ or ongo+ inve/m5ts 9 or      
retr(its ( ! facilities2  7,,iii7 a     
description ( ! me?od ( production1     
includ+ te*nologies & fe$/ocks1 t w be  
us$ to manufacture ! eligible goods     
cov]$ "u ! propos$ cov]$ contract2      
7,,iv7 ! details ( any inve/m5ts or     
retr(its requir$ to produce ! eligible  
goods cov]$ "u ! propos$ cov]$ contract1
 includ+ ! con/ruction ( new facilities2
  7,v7 ! expect$ c>bon int5sity ( !     
eligible goods cov]$ "u ! propos$ cov]$ 
contract = ea* ye> ( ! duration ( !     
propos$ cov]$ contract2  7,,vi7 !       
propos$ /rike price ( ! eligible goods  
cov]$ "u ! propos$ cov]$ contract2      
7,,vii7 ! expect$ annual production     
volume 7express$ 9 ! relevant quantity7 
( ! eligible goods cov]$ "u ! propos$   
cov]$ contract = ea* ye> ( ! propos$    
cov]$ contract2 &  7,,viii7 any o!r     
in=mation det]m9$ necess>y by !         

,secret>y4  7iii7 ,eligible goods class 
7,i7 ,9 g5]al ,= ea* auction "u clause  
7i71 ! ,secret>y %all assign ea*        
eligible good to an eligible goods      
class1 :i* may comprise a s+le eligible 
good or multiple eligible goods4  7,,ii7
 ,class ( multiple eligible goods ,9    
det]m9+ ! eligible goods t %all be gr\p$
 into a s+le eligible goods class =     
purposes ( an auction "u clause 7i71 !  
,secret>y %all--  7aa7 only gr\p        
eligible goods t c reasonably compete ) 
ea* o!r = m>ket %>e 9 ! economy & on !  
basis ( c>bon int5sity 9 ! auction2 &   
7bb7 prioritize ! creation ( eligible   
goods classes t are conducive to fair & 
competitive auctions4  7,,iii7 ,b5*m>k  
c>bon int5sity ,! b5*m>k c>bon int5sity 
= an eligible goods class ) eligible    
goods f multiple cov]$ national         
indu/ries %all be ! mean b5*m>k c>bon   
int5sity ( ^? cov]$ national indu/ries  
7aft] conv]t+ to ! same relevant        
quantity1 if necess>y74  7iv7 ,ambition 
level ,if ! ,secret>y det]m9es t !re are

 conditions to support suffici5t auction
 competitiv5ess1 ! ,secret>y may hold   
sep>ate auctions )9 an eligible goods   
class = projects t yield ea* ( ! foll[+ 
p]c5tages ( r$uction 9 c>bon int5sity3  
7,i7 ,a r$uction 9 c>bon int5sity f     
b5*m>k c>bon int5sity ( n less ?an #bj  
p]c5t b n m ?an #ej p]c5t4  7,,ii7 ,a   
r$uction 9 c>bon int5sity f b5*m>k c>bon
 int5sity ( n less ?an #ej p]c5t b n m  
?an #hj p]c5t4  7,,iii7 ,a r$uction 9   
c>bon int5sity f b5*m>k c>bon int5sity (
 m ?an #hj p]c5t4  7v7 ,selection ,!    
,secret>y %all det]m9e ! w9n]s ( ea*    
auction "u clause 7i7 by select+        
projects 9 rank ord] f ! l[e/ to !      
highe/ value ( ! quoti5t obta9$ by      
divid+--  7,i7 ! expect$ p]-unit paym5t 
am\nt describ$ 9 subp>agraph            
7,f77ii77,,ii71 :i* %all be det]m9$ by !
 ,secret>y us+ ! propos$ /rike price ( !
 eligible entity & ! fair m>ket value at
 ! "t ( auction2 by  7,,ii7 an am\nt    
equal to ! diff]5ce betwe5--  7aa7 !    
b5*m>k c>bon int5sity2 &  7bb7 ! c>bon  

int5sity ( ! eligible good "u ! propos$ 
cov]$ contract4  7vi7 ,adm9i/ration     
7,i7 ,9 g5]al ,! ,secret>y %all design &
 manage competitive auctions "u clause  
7i7 to maximize fairness1               
competitiv5ess1 accurate price discov]y1
 & ! mo/ effici5t utilization ( public  
funds to a*ieve r$uctions 9 c>bon       
int5sity & ! o!r goals ( ! program4     
7,,ii7 ,auction budget ,! ,secret>y %all
 e/abli% a budget = ea* auction held "u 
! program4  7,d7 ,requirem5ts  7i7      
,c>bon int5sity r$uction ,ea* cov]$     
contract aw>d$ "u ! program %all be     
requir$ to a*ieve at lea/ a #bj p]c5t   
r$uction 9 c>bon int5sity z comp>$ to ! 
b5*m>k c>bon int5sity on ! date (       
comm5cem5t ( ! contract4  7ii7 ,labor   
,an eligible entity aw>d$ a cov]$       
contract "u ! program %all be requir$-- 
7,i7 to pay prevail+ wages = any "w     
p]=m$1 includ+ = ! execution ( any      
inve/m5ts or retr(its necess>y to       
produce ! applicable eligible goods2 &  
7,,ii7 to e/abli% a community b5efits   

agreem5t 9 conjunction ) ! production ( 
! applicable eligible goods1 includ+ !  
execution ( any inve/m5ts or retr(its   
necess>y to produce ^? eligible goods4  
7,e7 ,contract t]ms ,ea* cov]$ contract 
"u ! program %all include ! foll[+3 7i7 
,a description ( ! project "u ! cov]$   
contract1 includ+--  7,i7 details on !  
eligible goods1 includ+ relevant        
di/+ui%+ qualities & prop]ties & !      
me?odology ( produc+ ^? eligible goods2 
7,,ii7 ! execution ( any inve/m5ts or   
retr(its necess>y to produce ^? eligible
 goods2 &  7,,iii7 p]=mance requirem5ts 
= ! project & proc$ures & p5alties if ^?
 requirem5ts are n met4  7ii7 ,! maximum
 paym5t am\nt det]m9$ pursuant to       
subp>agraph 7,f77iv74  7iii7 ,! expect$ 
c>bon int5sity ( ea* eligible good cov]$
 "u ! cov]$ contract1 e/imat$ = ea* ye> 
( ! duration ( ! cov]$ contract4  7iv7  
,! /rike price = ea* eligible good "u ! 
cov]$ contract1 includ+ any proc$ures = 
adju/+ ! /rike price ov] "t1 pursuant to
 subp>agraph 7,f77iii74  7v7 ,! me?ods &

 data s\rces to be us$ = calculat+ cov]$
 emissions & ! applicable fair m>ket    
value ( eligible goods1 z e/abli%$ by ! 
,secret>y4  7vi7 ,details ( ! community 
b5efits agreem5t e/abli%$ pursuant to   
subp>agraph 7,d77ii77,,ii74  7vii7 ,!   
duration ( ! cov]$ contract1 subject to 
any e>ly t]m9ation rules e/abli%$ by !  
,secret>y4  7viii7 ,any o!r t]ms det]m9$
 necess>y by ! ,secret>y4  7,f7 ,paym5ts
  7i7 ,9 g5]al ,"u ea* cov]$ contract   
ent]$ into "u ! program1 ! ,secret>y    
%all make at lea/ #a paym5t annually4   
7ii7 ,am\nt ,! am\nt ( a paym5t "u      
clause 7i71 ) respect to an eligible    
good produc$ by an eligible entity ov] a
 designat$ p]iod ( "t1 z det]m9$ by !   
,secret>y1 %all equal ! product obta9$  
by multiply+--  7,i7 ! quantity ( !     
eligible good 7express$ 9 ! relevant    
quantity7 produc$ by ! eligible entity  
dur+ ! designat$ p]iod ( "t2 &  7,,ii7 !
 p]-unit paym5t am\nt1 :i* %all be !    
diff]5ce betwe5--  7aa7 ! /rike price2 &
  7bb7 ! av]age applicable fair m>ket   

value ( ! same eligible good dur+ !     
designat$ p]iod ( "t1 z det]m9$ by !    
,secret>y4  7iii7 ,dynamic index+ ,!    
,secret>y %all adju/ ! /rike price      
e/abli%$ 9 ea* cov]$ contract ov] "t to 
acc\nt =-- 7,i7 inflation2 &  7,,ii7    
*anges 9 ! co/ ( key inputs to !        
production ( ! eligible good1 z det]m9$ 
by ! ,secret>y1 includ+1 at a m9imum--  
7aa7 natural gas2  7bb7 hydrog52 &  7cc7
 electricity4  7iv7 ,maximum paym5t     
am\nt ,= ea* cov]$ contract "u !        
program1 ! ,secret>y %all e/abli% a     
maximum am\nt t may be paid "u t cov]$  
contract1 :i* am\nt-- 7,i7 takes into   
consid]ation expect$ levels (--  7aa7 ! 
quantity ( eligible goods cov]$ "u !    
cov]$ contract 7express$ 9 ! relevant   
quantity7 produc$ ov] ! duration ( !    
cov]$ contract2 &  7bb7 ! p]-unit paym5t
 am\nt describ$ 9 clause 7ii77,,ii72    
7,,ii7 maximizes ! deploym5t ( available
 appropriations & ! a*ievem5t ( ! goals 
( ! program2 &  7,,iii7 ensures t       
obligat$ exp5ditures d n exce$ available

 appropriations4  7,g7 ,p5alties ,!     
,secret>y may impose f9ancial & o!r     
p5alties on any eligible entity t fails 
to meet ! p]=mance requirem5ts e/abli%$ 
by ! ,secret>y = ! cov]$ contract ( t   
eligible entity4  7,h7 ,public notice ,n
 lat] ?an #ahj days be=e ea* auction is 
held "u ! program1 ! ,secret>y %all     
publi% guidance on ! auction process1   
includ+--  7i7 ! timel9e & selection    
process2  7ii7 a li/ ( eligible goods1  
eligible goods classes1 & ambition      
levels1 if applicable2  7iii7 ! auction 
budget = ea* eligible goods class &     
ambition level1 if applicable2  7iv7 !  
b5*m>k c>bon int5sity = ea* eligible    
goods class2  7v7 ! applicable fair     
m>ket value = ea* eligible goods class1 
measur$ z ! av]age applicable fair m>ket
 value ov] ! prec$+ #ab mon?s2 &  7vi7  
any additional in=mation ne$$ to        
facilitate a fair & competitive auction1
 z det]m9$ by ! ,secret>y4  7,i7        
,rulemak+  7i7 ,9 g5]al ,! ,secret>y    
%all-- 7,i7 n lat] ?an #a ye> aft] !    

date ( enactm5t ( ?is ,act1 promulgate  
rules = ! implem5tation ( ! program2 &  
7,,ii7 update ^? rules at lea/ once e #e
 ye>s !reaft]4  7ii7 ,effect on         
contracts ,any update made "u clause    
7i77,,ii7 %all n apply to cov]$         
contracts "u ! program 9 effect be=e !  
date ( effectiv5ess ( ! update4  7#d7   
,emissions r$uction goal ,9 aw>d+ fund+ 
"u ! cov]$ programs1 ! ,secret>y %all   
seek to keep ! aggregate c>bon int5sity 
( ea* cov]$ national indu/ry 9 ! ,unit$ 
,/ates bel[ ! value ( ! applicable      
p]c5tage ( ! basel9e c>bon int5sity = t 
cov]$ national indu/ry4  7#e7           
,allocation ( fund+ ,9 aw>d+ fund+ "u ! 
cov]$ programs1 ! ,secret>y %all1 to !  
maximum ext5t practicable1 allocate     
funds to eligible entities t produce    
cov]$ prim>y goods t are includ$ )9 a   
cov]$ national indu/ry 9 approximate    
proportion to ! %>e ( total gre5h\se gas
 emissions t ! cov]$ national indu/ry is
 responsible = emitt+4  7#f7 ,(fices ,! 
,secret>y may e/abli% #a or m (fices )9 

! ,dep>tm5t ( ,en]gy to adm9i/] ! cov]$ 
programs4  7#g7 ,evaluation & report ,n 
lat] ?an ,janu>y #a1 #bjcb1 ! ,secret>y 
%all submit to ,congress a report       
evaluat+ ! efficacy ( ! cov]$ programs4 
7#h7 ,appropriations  7,a7 ,9 g5]al ,=  
fiscal ye> #bjbg & ea* subsequ5t fiscal 
ye>1 9 addition to am\nts o!rwise       
available1 !re are appropriat$1 out (   
any funds 9 ! ,treasury n o!rwise       
appropriat$1 to ! ,secret>y to c>ry out 
?is subsection an am\nt equal to ! am\nt
 det]m9$ "u subp>agraph 7,b7 ) respect  
to su* fiscal ye>4  7,b7 ,appropriation 
7i7 ,fiscal ye> #bjbg ,= fiscal ye>     
#bjbg1 ! am\nt appropriat$ = purposes ( 
p>agraph 7#b7 %all be #ge1jjj1jjj1jjj4  
7ii7 ,subsequ5t fiscal ye>s ,= fiscal   
ye> #bjbh & ea* subsequ5t fiscal ye>1 ! 
am\nt appropriat$ = purposes ( p>agraph 
7#b7 %all be equal to ! applicable am\nt
 7z det]m9$ "u subp>agraph 7,c77 = !    
prec$+ fiscal ye>4  7,c7 ,applicable    
am\nt ,= purposes ( ?is p>agraph1 ! t]m 
applicable am\nt means--  7i7 = any     

fiscal ye> beg9n+ prior to ! date on :i*
 ! ,secret>y ( ! ,treasury det]m9es !   
total increase 9 rev5ues to ! ,treasury 
by reason ( ! application ( sub*apt] ,e 
( *apt] #ch ( ! ,int]nal ,rev5ue ,code (
 #aihf 7z add$ by subsection 7a77 is    
equal to or great] ?an #ajj1jjj1jjj1jjj1
 #j2 or  7ii7 ) respect to any fiscal   
ye> beg9n+ aft] ! date describ$ 9 clause
 7i71 an am\nt equal to #be p]c5t ( !   
increase 9 rev5ues to ! ,treasury dur+  
su* fiscal ye> by reason ( ! application
 ( sub*apt] ,e ( *apt] #ch ( ! ,int]nal 
,rev5ue ,code ( #aihf 7z add$ by        
subsection 7a774  7d7 ,economic ,support
 ,fund ( ,dep>tm5t ( ,/ate  7#a7 ,9     
g5]al ,= fiscal ye> #bjbg & ea*         
subsequ5t fiscal ye>1 9 addition to     
am\nts o!rwise available1 !re are       
appropriat$1 out ( any funds 9 !        
,treasury n o!rwise appropriat$1 to !   
,dep>tm5t ( ,/ate an am\nt equal to !   
am\nt det]m9$ "u p>agraph 7#b7 ) respect
 to su* fiscal ye>1 ) su* am\nt to be   
made available = bilat]al & multilat]al 

assi/ance to support climate & clean    
en]gy programs4  7#b7 ,pref]5ce ,9      
provid+ assi/ance "u p>agraph 7#a71 !   
,secret>y ( ,/ate 79 conjunction ) !    
,secret>y ( ! ,treasury1 ! ,secret>y (  
,en]gy1 & ! ,adm9i/rator ( !            
,environm5tal ,protection ,ag5cy7 %all  
allocate su* assi/ance 9 a mann] :i*    
prioritizes ! foll[+ goals 9 ! foll[+   
ord] ( importance3  7,a7 ,facilitat+ !  
negotiation ( c>bon club agreem5ts      
pursuant to section #dfid ( ! ,int]nal  
,rev5ue ,code ( #aihf 7z add$ by        
subsection 7a774  7,b7 ,provid+         
assi/ance to c\ntries describ$ 9 section
 #dfid7;d77#b7 ( su* ,code4  7,c7       
,maximiz+ ! r$uction ( global gre5h\se  
gas emissions4  7,d7 ,secur+ access = ! 
,unit$ ,/ates to mat]ials & inputs      
necess>y to manufacture products ) l[]  
c>bon int5sity1 p>ticul>ly ^? t are n   
feasibly produc$ dome/ically4  7,e7     
,support+ human developm5t & r$uctions 9
 pov]ty4  7,f7 ,advanc+ ! national      
security & diplomatic int]e/s ( ! ,unit$

 ,/ates4  7#c7 ,appropriation  7,a7     
,fiscal ye> #bjbg ,= fiscal ye> #bjbg1 !
 am\nt appropriat$ = purposes ( p>agraph
 7#a7 %all be #be1jjj1jjj1jjj4  7,b7    
,subsequ5t fiscal ye>s ,= fiscal ye>    
#bjbh & ea* subsequ5t fiscal ye>1 !     
am\nt appropriat$ = purposes ( p>agraph 
7#a7 %all be equal to ! applicable am\nt
 7z det]m9$ "u p>agraph 7#d77 = ! prec$+
 fiscal ye>4  7#d7 ,applicable am\nt ,= 
purposes ( ?is subsection1 ! t]m        
applicable am\nt means-- 7,a7 = any     
fiscal ye> beg9n+ prior to ! date on :i*
 ! ,secret>y ( ! ,treasury det]m9es !   
total increase 9 rev5ues to ! ,treasury 
by reason ( ! application ( sub*apt] ,e 
( *apt] #ch ( ! ,int]nal ,rev5ue ,code (
 #aihf 7z add$ by subsection 7a77 is    
equal to or great] ?an #ajj1jjj1jjj1jjj1
 #j1 or  7,b7 ) respect to any fiscal   
ye> beg9n+ aft] ! date describ$ 9       
subp>agraph 7,a71 an am\nt equal to #be 
p]c5t ( ! increase 9 rev5ues to !       
,treasury dur+ su* fiscal ye> by reason 
( ! application ( sub*apt] ,e ( *apt]   

#ch ( ! ,int]nal ,rev5ue ,code ( #aihf  
7z add$ by subsection 7a774