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Bill
Notes

Title I — Carbon pollution fee

S. 332 · 113th Congress · Feb 14, 2013 · Lineage

I Carbon pollution fee

Sec. 101 Carbon pollution fee

(a)
In general— Title I of the Clean Air Act (42 U.S.C. 7401 et seq.) is amended by adding at the end the following:

“E Carbon pollution fee

“195. Definitions

“In this part:

“(1) Carbon polluting substance—The term carbon polluting substance means coal (including lignite and peat), petroleum and any petroleum product, or natural gas that—

“(A) when combusted or otherwise used, will release greenhouse gas emissions; and

“(B) is—

“(i) extracted, manufactured, or produced in the United States; or

“(ii) imported into the United States for consumption, use, or warehousing.

“(2) Carbon pollution-intensive good—The term carbon pollution-intensive good means a good that is (as identified by the Administrator, by rule)—

“(A) iron, steel, a steel mill product (including pipe and tube), aluminum, cement, glass (including flat, container, and specialty glass and fiberglass), pulp, paper, a chemical, or an industrial ceramic;

“(B) any other manufactured product that the Administrator determines—

“(i) is transferred for purposes of further manufacture; and

“(ii) generates, in the course of the manufacture of the product, direct and indirect greenhouse gas emissions that are comparable (on an emissions-per-dollar of output basis) to emissions generated in the manufacture or production of a product identified in subparagraph (A); or

“(C) a manufactured item—

“(i) in which 1 or more products identified in subparagraph (A) or (B) are inputs; and

“(ii) the cost of production of which in the United States is significantly increased by the imposition of a fee under this part.

“(3) First calendar year—The term first calendar year means the earlier of—

“(A) calendar year 2014; or

“(B) the first calendar year beginning at least 180 days after the date of enactment of this part.

“(4) Substantially equivalent measure—The term substantially equivalent measure means a fee or other regulatory requirement that imposes a cost on manufacturers of carbon pollution-intensive goods located outside the United States approximately equal to the cost imposed by the fee under this part on manufacturers of comparable carbon pollution-intensive goods located in the United States.

“(5) 12th calendar year—The term 12th calendar year means the calendar year beginning 12 years after the first calendar year.

“196. Imposition of fee

“(a) In general—The Administrator shall impose on any manufacturer, producer, or importer of a carbon polluting substance a fee in accordance with this section.

“(b) Amount

“(1) In general—The amount of the carbon pollution fee imposed under subsection (a) on any carbon polluting substance shall be assessed per ton of carbon dioxide content (including carbon dioxide equivalent content of methane) of the carbon polluting substance, as determined by the Administrator, in consultation with the Secretary of Energy.

“(2) Fractional part of ton—In the case of a fraction of a ton of a carbon polluting substance, the fee imposed under subsection (a) shall be the same fraction of the amount of the fee imposed on a whole ton of the carbon polluting substance.

“(3) Applicable amount—For purposes of paragraph (1), the amount of the fee shall be—

“(A) for the first calendar year, $20;

“(B) for each calendar year occurring after the first calendar year and before the 12th calendar year, an amount equal to the sum of—

“(i) the amount in effect under this paragraph for the preceding calendar year; and

“(ii) the product (rounded to the nearest dollar) obtained by multiplying—

“(I) the amount described in clause (i); and

“(II) 5.6 percent; and

“(C) for the 12th calendar year and any calendar year thereafter, the amount in effect under this paragraph for the preceding calendar year.

“(c) Single imposition of fee—No fee shall be imposed under subsection (a) with respect to a carbon polluting substance if the person that would be liable for the fee establishes that a prior fee imposed under that subsection has been imposed with respect to that carbon polluting substance.

“(d) Limitations—No fee shall be imposed against a person under subsection (a) for a calendar year if during that calendar year, in accordance with such regulations as the Administrator may prescribe—

“(1) the person uses a carbon polluting substance as a feedstock so that the carbon associated with that carbon polluting substance will not be emitted;

“(2) a fee under subsection (a) was paid with respect to another carbon polluting substance that is used by the person in the manufacture or production of the applicable carbon polluting substance; or

“(3) the carbon polluting substance is exported.

“197. Carbon equivalency fee

“(a) Imports

“(1) In general—The Administrator shall impose a carbon equivalency fee on imports of carbon pollution-intensive goods that shall be equivalent to the cost that domestic producers of comparable carbon pollution-intensive goods incur as a result of—

“(A) fees paid by manufacturers, producers, and importers of carbon polluting substances under this part; and

“(B) carbon equivalency fees paid by importers of carbon pollution-intensive goods used in the production of the relevant comparable carbon pollution-intensive goods.

“(2) Determination of fee amount

“(A) In general—The amount of the carbon equivalency fee under paragraph (1) shall be—

“(i) determined annually; and

“(ii) differentiated by classes of products and country of origin, taking into account the quantity of greenhouse gas emissions released during the process of manufacturing the carbon pollution-intensive goods and transporting the carbon pollution-intensive goods from the country of origin.

“(B) Petitions for adjustment—The Administrator shall provide for a process for petitioning for adjustment to any fees determined under this subsection.

“(b) Use of proceeds

“(1) Transfer of funds—For each applicable fiscal year, the Secretary of the Treasury shall transfer to the Administrator and the Secretary of Transportation an amount equal to 50 percent each of the amounts received during the preceding fiscal year as a result of the carbon equivalency fee imposed under subsection (a), without further appropriation.

“(2) Use of funds

“(A) Environment—The Administrator, in consultation with the Secretary of Agriculture, the Secretary of the Interior, and the Secretary of State, shall use the amounts transferred under paragraph (1)—

“(i) as a primary purpose, to provide amounts to State and local programs that assist communities in—

“(I) adapting to climate change;

“(II) improving the resiliency of critical infrastructure; and

“(III) protecting environmental quality and wildlife; and

“(ii) as a secondary purpose, to meet international commitments made by the United States to assist with climate change adaptation.

“(B) Transportation—The Secretary of Transportation shall use the amounts transferred under paragraph (1) to provide amounts—

“(i) to State and local programs that assist communities in improving the resiliency of critical infrastructure; and

“(ii) for projects that provide preferential parking for carpools, including the addition of electric vehicle charging stations, subject to the condition that the primary purpose of the facilities is the reduction of vehicular traffic on nearby Federal-aid highways.

“(c) Expiration—This section shall cease to have effect at such time as, and to the extent that—

“(1)

“(A) in the case of countries of export that adopt and ratify an international agreement requiring countries that emit greenhouse gases and produce carbon pollution-intensive goods for international markets to adopt equivalent measures, the international agreement comes into effect; or

“(B) the country of export has implemented substantially equivalent measures, as certified by the President of the United States; and

“(2) the actions provided under subsection (a) are no longer appropriate, as determined by the Administrator.

“198. Report to Congress

“Not later than 5 years after the date of enactment of this part, the Administrator shall submit to Congress a report that includes recommendations for—

“(1) the administration of the carbon pollution fee program under this part for calendar years beginning after the 12th calendar year, including a schedule for establishing the amount of the fee for those subsequent calendar years; and

“(2) future investments to reduce greenhouse gas emissions and provide resources for climate change adaptation.”

(b)
Technical amendments— Title IV of the Clean Air Act (relating to noise pollution) (42 U.S.C. 7641 et seq.) is—
(1)
amended by redesignating sections 401 through 403 as sections 701 through 703, respectively; and
(2)
redesignated as title VII and moved to appear at the end of that Act.

Sec. 102 Residential environmental rebate program

(a)
In general— There is authorized to be appropriated to the Administrator of the Environmental Protection Agency (referred to in this section as the Administrator) an amount equal to 3/5 of the amounts received in the Treasury as the result of the fee imposed under section 196 of the Clean Air Act (as added by section 101(a)) to provide a monthly residential environmental rebate to legal residents of the United States.
(b)
Regulations— As soon as practicable after the date of enactment of this Act, the Administrator shall promulgate regulations establishing procedures for the distribution of residential environmental rebates under subsection (a), including procedures that provide, to the maximum extent practicable, for—
(1)
the coordination of the monthly residential environmental rebate with other Federal and State payment mechanisms;
(2)
the use of electronic transfers of the monthly residential environmental rebates; and
(3)
the establishment of an Office of Environmental Rebate Advocate within the Environmental Protection Agency to assist households with accessing and using the residential environmental rebate program.
(c)
Administrative costs— Of the amounts reserved for rebates under this section, not more than 1 percent shall be used to administer the program under this section.

Sec. 103 Pollution Reduction Trust Fund

(a)
Establishment— There is established in the Treasury of the United States a trust fund to be known as the “Pollution Reduction Trust Fund” (referred to in this section as the Trust Fund), consisting of such amounts as are transferred to the Trust Fund under subsection (b) and to be used to facilitate the implementation of the carbon pollution reduction program.
(b)
Transfers to Trust Fund— After setting aside amounts under section 102(a), there is appropriated to the Trust Fund an amount equivalent to the remaining revenues received in the Treasury as the result of the fee imposed under section 196 of the Clean Air Act (as added by section 101(a)).
(c)
Distribution of amounts— Amounts in the Trust Fund for a calendar year shall be available without further appropriation, as follows:
(1)
$7,500,000,000 shall be available to the Administrator of the Environmental Protection Agency, for each of the first 10 calendar years beginning after the date of enactment of this Act, to mitigate the economic impacts of the fee imposed under section 196 of the Clean Air Act (as added by section 101(a)) on energy-intensive and trade-exposed industries, to be distributed in accordance with regulations promulgated by the Administrator, subject to the requirement that the Administrator shall reserve not less than ¼ of those amounts for energy efficiency investments in energy-intensive or trade-exposed industries.
(2)
$5,000,000,000 shall be available to the Secretary of Energy to carry out the Weatherization Assistance Program for Low-Income Persons established under part A of title IV of the Energy Conservation and Production Act (42 U.S.C. 6861 et seq.) for each of the first 10 calendar years beginning after the date of enactment of this Act.
(3)
$1,000,000,000 shall be available to the Secretary of Labor for each of the first 10 calendar years beginning after the date of enactment of this Act for job training, education, and transition assistance for individuals employed by the fossil fuel industry seeking to transition to clean energy jobs.
(4)
$2,000,000,000 shall be available for the Advanced Research Projects Agency-Energy for each of the first 10 calendar years beginning after the date of enactment of this Act.
(5)
The balance shall be used for Federal budget deficit reduction.